HomeMy WebLinkAbout2025-04-15 ResolutionItem Number: 6.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Motion to approve a tentative agreement between the City of Iowa City and the American
Federation of State, County, and Municipal Employees (AFSCME), Local #183, AFL-CIO.
Prepared By: Karen Jennings, Human Resources Administrator
Reviewed By: Geoff Fruin, City Manager
Chris O'Brien, Deputy City Manager
Fiscal Impact: The wage settlement is within fiscal year 2026 budget
parameters.
Staff Recommendation: Approval
Attachments: Tentative agreement 3.11.25
Executive Summary:
The current AFSCME collective bargaining agreement, effective through June 30, 2026,
included a limited re -opener in the final year. The City participated in collective bargaining
with AFSCME in accordance with Chapter 20 of the Iowa Code. The parties participated in a
bargaining session on March 11, 2025 and reached a tentative agreement (TA). The tentative
agreement is subject to both City Council approval and union ratification. The City was
notified on April 8, 2025 that the union has ratified the TA.
Background / Analysis:
The AFSCME contract limited re -opener for fiscal year 2026 was voluntarily settled.
Negotiated wage adjustments provide for a 2.75% across the board increase in July 2025.
The tentative agreement is attached.
TENTATIVE AGREEMENT
CITY OF IOWA CITY, IOWA
AND
AFSCME Local 4183
City Counter Proposal 1
March 11, 2025
Job Classification and Wage Rates
July 1, 2025 — 2,75% ATB
Q5
Item Number: 6.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution approving an agreement with the Downtown District to allow the sale and
possession of beer and wine during the Block Party.
Prepared By:
Reviewed By:
Fiscal Impact:
Staff Recommendation:
Commission Recommendations
Attachments: Resolution
Agreement
Susan Dulek, First Ass't. City Attorney
Geoff Fruin, City Manager
none
Approval
N/A
Executive Summary:
The City Code allows nonprofit entities to enter an agreements with the City to sell and their
customers to consume and possess alcohol on City streets. As in past years, the Downtown
District would like to be able to sell beer and wine and to have persons to possess beer and
wine in a demarcated area on City streets during the Block Party on June 28. The proposed
agreement is substantially similar to last year except the area is expanded to include the 300
block of E. College St.
Prepared by: Susan Dulek, First Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution No. 25-81
Resolution approving an agreement with the Downtown District
to allow the sale and possession of beer and wine during the
Block Party.
Whereas, section 4-5-3D of the City Code allows nonprofit entities to sell and their customers to
consume and possess alcohol in a city park and on public right-of-way under limited
circumstances; and
Whereas, Downtown District would like to be able to sell beer and wine in a demarcated area on
City streets during the Block Party this summer and have persons possession beer and wine
within the demarcated area; and
Whereas, it is in the City of Iowa City's interest to execute the attached agreement.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that
The City Manager is authorized to sign the attached agreement and any needed amendments
Passed and approved this 15th day of April, 2025.
M
Approved by:
Attest:
City Clerk City Attorn 's Office
(Sue Dulek - 04/08/2025)
Resolution No. 25-81
Page No. 2
It was moved by Moe , and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Alter , that the
Docusign Envelope ±D 96Ei9BD8-D886-4944-BD82-CB7372952358
Drafted by: Susan Dulek, Assl City Attomey 410 E Washington St , Iowa City, lA 52240;3191356-5030
2025 AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND IOWA CITY DOWNTOWN SELF -
SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT
TO ALLOW THE TEMPORARY AND LIMITED SALE, CONSUMPTION, AND
POSSESSION OF BEER AND WINE DURING THE BLOCK PARTY
This Agreement is made between Iowa City Downtown Self Supported Municipal
Improvement District, d/bla Iowa City Downtown District ("District") and the City of Iowa
City, a municipal corporation ("City"), in Iowa City, Iowa.
WHEREAS. District is an "authorized entity" as that term is defined in section 4-5-
3D of the City Code;
WHEREAS. District has applied for a license to sell beer and wine during the Block
Party; and
WHEREAS, the parties wish to enter into an agreement to allow District to sell beer
and wine and to allow persons to possess and consume beer and wine under limited
circumstances on downtown City streets.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Authorized Site. In consideration for District's promises herein, the City agrees
to allow District control from 4:00 pm to 11:00 pm on June 28, 2025, an area as
shown on the diagram which is attached, marked Exhibit A, and incorporated
herein ("Block Party authorized site„ or "authorized site") for purposes set forth
herein. District must allow members of the public not participating in the event
to walk through the authorized site on the sidewalk.
2. Term. This agreement shall be in effect only on June 28, 2025, for the Block
Party,
3, Access. District shall take all reasonable steps to ensure that only persons over
twenty-one (21) years of age have access to beer and wine. Said reasonable
steps include, but are not limited to, ensuring that: a) all persons over twenty-one
(21) years of age shall be provided a wrist band and an approved container upon
purchase of beer or wine; and b) no one may possess an open container of beer
or wine unless it is in an approved container and the person is wearing a wrist
band- Approved container means a glass or cup that is approved by the City
prior to the event. If the District observes anyone in possession of an open
container of beer or wine (or any type of alcohol) that is not in an approved
container or anyone in possession of an approved container with beer or wine
who does not have a wrist band, the District shall immediately request that the
person pour out the liquid. If the person refuses to do so, the District shall
immediately contact the Iowa City Police Department.
4. License. This agreement is void if District does not have a license to sell beer
and wine on the Block Party authorized site on June 28, 2025.
5. Sale of Beer/Wine and Alcohol Restrictions. District shall only sell beer and wine
to a person who is over twenty-one (21) years of age. District acknowledges
that the authorized sites are subject to all applicable alcohol restrictions in the
City Code.
Doccusign Envelope 90 90E19B08-D886-4944-BD82-CB7372952358
6. Advertisement. District shall not, nor shall it allow anyone to, erect or place any
sign or other matter advertising any brand of alcoholic liquor, beer, or wine upon
the authorized site with the exception that signage may be placed on the interior
and exterior tent walls. Sponsorship signage unrelated to businesses selling
alcohol, beer, wine, or tobacco will be allowed.
7. Inspection. City staff, including the Iowa City Police Department. may
periodically inspect the authorized sites without any prior notice to determine
compliance with the terms of this agreement.
8. Debris and Trash. District shall be solely responsible for collecting all debris and
trash from the authorized sites, and the City shall then remove the debris and
trash. If District fails to do so and if City staff has to collect the debris and trash
from the authorized sites, District may be responsible for the cost incurred by the
City, including staff time, and shall pay the costs in full within thirty (30) days of
receiving an invoice.
9. No Smoking. Smoking is prohibited by City Code in City Plaza, aka the ped
mall, but not in the alleys. Smoking is also prohibited by City Code on the
sidewalk to the east of the Iowa City Public Library. The use of electronic
cigarettes is also prohibited in these two areas. Electronic cigarette means
vapor product as defined in Section 453A.1 of the Code of Iowa, as amended.
10. Temporary Toilet Facilities and Nand Washing Stations. District shall provide at
its sole cost thirty (30) temporary toilet facilities in the seven (7) locations shown
on Exhibit A, including one (1) that is handicap accessible in five (5) locations.
District shall further provide at its sole cost two (2) hand washing stations
adjacent to the facilities unless the facilities themselves are equipped with hand
washing stations.
11. Anchoring and Drilling. District shall not drill any holes into the pavement or the
sidewalk and shall not anchor a tent tie down or pole to the pavement or the
sidewalk.
12. Fencing. The authorized site shall be enclosed by fencing as approved by the
City.
13. Securit District shall reimburse the City for the costs of an agreed upon
number of officers at $88.00 per hour per officer, with a minimum two-hour
assignment, from 4:00 pm to 11:00 pm on June 28, 2025, for the Block Party.
District acknowledges the City's preference is for ten (10) officers to be present,
but the number of officers available is dependent on staffing demands at the
time of the Block Party. Payment is due within thirty (30) days of receipt of an
invoice.
14. Insurance.
a) Premises Insurance. On June 28, 2025. District shall carry
comprehensive general liability insurance for bodily injury and property
damage on the authorized site in the amount of $1,000,000 (one million
dollars) for each occurrence and $2,000,000 (two million dollars) in the
aggregate and shall name the City as an additional insured. District shall
furnish a copy of a certificate of insurance for same, satisfactory to the
City at the time of execution of this agreement. District shall notify the
City 1 week before cancellation of said insurance, and said cancellation
2
Docusign Envelope ID: 96E19B08-D886-4944-BD82-CB7372952358
shall automatically terminate this Agreement.
b) Dram Shop Insurance. On June 28, 2025, District shall carry "dram shop"
insurance in compliance with Iowa Code section 123.92, as amended, in
the amount of $1,000,000 (one million dollars). District shall provide 1
week notice to the City before cancellation of said insurance, and said
cancellation shall automatically terminate this Agreement.
c) Governmental Immunities Endorsement. District shall obtain a
governmental immunities endorsement that meets the requirements set
forth on Exhibit B, which is attached and incorporated herein.
15. Indemnification. District shall pay on behalf of the City all sums which the
City shall be obligated to pay by reason of any liability imposed upon the City
for damages of any kind resulting from the use of the authorized sight or sale,
consumption, or possession of beer on the authorized site, whether sustained
by any person or person, caused by accident or otherwise and shall defend
at its own expense and on behalf of the City, its officers, employees and
agents any claim against the City, its officers, employees, and agents arising
out of the use of the authorized site or sale, consumption, or possession of
beer on the authorized site.
16. Non -Discrimination. District shall not discriminate against any person in
employment or public accommodation because of race, religion, color, creed,
gender identity, sex, national origin, sexual orientation, mental or physical
disability, marital status or age. "Employment" shall include but not be limited
to hiring, accepting, registering, classifying, promoting, or referring to
employment. "Public accommodation" shall include but not be limited to
providing goods, services, facilities, privileges and advantages to the public.
17. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement.
18. Assignment and Subletting. District shall not assign or sublet this agreement
without prior written approval of the City.
19. Entire Agreement. This constitutes the whole agreement between the parties,
and may be modified in writing only, duly signed by the parties.
Dated, this
15th
day of April , 2025.
IOWA CITY AND IOWA CITY DOWNTOWN SELF -SUPPORTED
MUNICIPAL IMPROVEMENT DISTRICT
DocuSignedd vll by:
N
By: B6tsyRQttfM4cExecutive Director
THE CITY OF A Y
Approved:
eoff Fruin, City Manager
3
Gu;,- 7k- ct- s d c
City Attorney's Office
EXHIBIT
0
o r
Q
Z
w
a
bert St S Gilbert St S Gilbert St S Gilbert St
�.l
a.
N O pL O
U r
O
01
c C
O
°' 3 W m
"'0 W /) W
(n
,•nn S Li S Linn St
co
U C
+� coCp� A
V) 0,51
EM
Q d += C
O
(� 0,
n A AU
cu C)Co
3: O
a � rn Q e Z) c--c
N co _ a W
0 0 O `P L
)uque St c ��. o ' co
ev o (D Z:
m w
c
a� co
f+�
T a E c
a a
um
a � �
Cli �lintJ ,t' nton St 0
I.O
En
.� a�Cco o
o � U E?o� c
Docusign Envelope ID: 96E19B08-D886-4944-BD82-CB7372952358
EXHIBIT B
Governmental Immunities Endorsement
1. Non -waiver of Government Immunity. The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Iowa City, Iowa
as Additional Insured does not waive any of the defenses of governmental immunity
available to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now
exists and as it may be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of governmental
immunity under the Code of Iowa Section 670.4 as it now exists and as it may be
amended from time to time. Those claims not subject to Code of Iowa Section 670.4
shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa shall be
responsible for asserting any defense of governmental immunity, and may do so at
any time and shall do so upon the timely written request of the insurance carrier.
Nothing contained in this endorsement shall prevent the carrier from asserting the
defense of governmental immunity on behalf of the City of Iowa City.
4. Non -Denial of Coverage. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits accruing
to the City of Iowa City, Iowa under this policy for reasons of governmental immunity
unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of
governmental immunity asserted by the City of Iowa City, Iowa.
5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa,
agree that the above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
4
Item Number: 6.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution approving an agreement with Iowa City Downtown District to allow for the
consumption and possession of alcohol on a portion of the 200 block of N. Linn Street.
Prepared By:
Reviewed By:
Fiscal Impact:
Staff Recommendation:
Commission Recommendations
Attachments: Resolution
Agreement
Susan Dulek, First Ass't. City Attorney
Geoff Fruin, City Manager
none
Approval
N/A
Background / Analysis:
The City Code allows nonprofit corporations by agreement to have control over a portion of
the public right-of-way under limited circumstances for the purpose of possessing, consuming
and selling alcohol. The City Downtown District would like to be able to have patrons of
adjacent establishments possess and consume alcohol in a demarcated area in the 200
block of N. Linn Street from April 17, 2025, to October 14, 2025. The proposed agreement is
substantially similar to the 2024 agreement.
Prepared by: Susan Dulek, First Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
Resolution No. 25-82
Resolution approving an agreement with Iowa City Downtown
District to allow for the consumption and possession of alcohol
on a portion of the 200 block of N. Linn Street.
Whereas, section 4-5-31D of the City Code allows nonprofit corporations by agreement to have
control over a portion of the public right-of-way or a park under limited circumstances for the
purpose of possessing, consuming and selling alcohol; and
Whereas, the Iowa City Downtown District would like to be able to have patrons of adjacent
establishments possess and consume alcohol in a demarcated area in the 200 block of N. Linn
Street from April 17, 2025 to October 15, 2025; and
Whereas, it is in the City of Iowa City's interest to execute the attached agreement.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The City Manager is authorized to sign the attached agreement and any needed amendments
Passed and approved this 15 th day of April, 2025.
Mfiybr
Approved by:
Attest: / a l
City Clerk City Attorne s f lice
(Sue Dulek - 04/08/2025)
Resolution No. 25-8.2
Page No. 2
It was moved by Moe , and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
Alter
-x
Bergus
x
Harmsen
x
Moe
x
x
Salih
x
Teague
x
Weilein
ter , that the
Docusign Envelope ID: 954018FF-9A23-4482-A3D8-C81AA726E5F6
Drafted by: Susan Dulek, Ass't. City Attorney, 410 E. Washington St., Iowa City, IA 52240;3191356-5030
2025 AGREEMENT
BETWEEN THE CITY OF IOWA CITY AND IOWA CITY DOWNTOWN SELF -
SUPPORTED MUNICIPAL IMPROVEMENT DISTRICT
TO ALLOW THE CONSUMPTION AND POSSESSION OF ALCOHOL IN THE
200 BLOCK OF N. LINN STREET
This Agreement is made between Iowa City Downtown Self Supported Municipal
Improvement District, d/b/a Iowa City Downtown District ("District") and the City of Iowa
City, a municipal corporation ("City"), in Iowa City, Iowa.
WHEREAS, District is an "authorized entity" as that term is defined in section 4-5-
3D of the City Code; and
WHEREAS, District has applied for an alcohol license for the 200 block of N. Linn
Street for from April 16, 2025, to October 14, 2025; and
WHEREAS, the parties wish to enter into an agreement to allow persons to possess
and consume alcohol under limited circumstances on the 200 block of N. Linn Street.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
Authorized Site. In consideration for District's promises herein, the City agrees
to allow District control over the area in the 200 block of N. Linn St. as shown
on the diagram which is attached, marked Exhibit A, and incorporated herein
("authorized site") during the term of this Agreement. Alcohol may be
possessed and consumed on the authorized site only from 10:00 am to 11:59
pm. District must allow members of the public unobstructed use and access to
the authorized site at all times.
2. Term. This agreement shall be in effect from April 16, 2025, at 10:00 am to
October 14, 2025, at 11:59 pm.
3. License. This agreement is void if District does not have an alcohol license.
4. Liquor. Liquor may be possessed or consumed on the authorized site along
with wine and beer. Should the availability of liquor create safety concerns to
the public, as solely determined by the City, the City may notify District that
only wine and beer may be possessed or consumed on the authorized site and
that liquor is no longer allowed on the authorized site.
5. Sale and Service Restrictions. No sales or service of alcohol is allowed on the
authorized site. District shall ensure that establishments with alcohol licenses
located adjacent to the authorized site do not sell or serve alcohol to a person
on the authorized site. All alcohol sales and service must occur within the
building housing said establishment or within the establishment's sidewalk
cafe. District acknowledges that the authorized site is subject to all applicable
alcohol restrictions in the City Code.
6. Delineation. The authorized site shall be delineated by pavement paint at
District cost and as approved by the City.
7. ADA. The District may place chairs and tables on the authorized site, but shall
ensure that there is a clear width of three feet (3') between arrangements of
Docusign Envelope ID: 954018FF-9A23-4482-A3D8-C81AA726E5F6
tables and chairs to allow a wheelchair an accessible route through the
authorized site.
8. Advertisement. District shall not, nor shall it allow anyone to, erect or place
any sign or other matter advertising any brand of alcoholic liquor, beer, or wine
upon the authorized site. Sponsorship signage unrelated to businesses selling
alcohol, beer, wine, or tobacco will be allowed. Additionally, items designed to
store, but not serve, alcohol and marked with a brand of alcohol may be
allowed with City permission if used in conjunction with lighting or table
service.
9. Cleaning. The parties acknowledge that, pursuant to a separate agreement
entitled "Operating Agreement," the City has agreed to provide regular
sweeping, trash removal and amenity repair in the 200-block on N. Linn Street,
which includes the authorized site. Should the City services provided pursuant
to said Operating Agreement be insufficient to maintain the authorized site as
determined by the City or should additional cleaning be desired by District
beyond the City's baseline services, District shall be responsible for such
cleaning of the authorized site at its cost.
10. No Smoking.
Smoking is prohibited, and District shall post a no -smoking sign on the north
and south sides of the authorized site. The signs shall comply with Iowa
Code Section 142D.6, as amended. Additionally, the use of electronic
cigarettes is prohibited. Electronic cigarette means vapor product as defined
in Section 453A.1 of the Code of Iowa, as amended.
11. Anchoring and Drilling. District shall not drill any holes into the pavement.
12. Insurance.
a) Premises Insurance. The District shall carry comprehensive general
liability insurance for bodily injury and property damage on the authorized
site in the amount of $1,000,000 (one million dollars) for each occurrence
and $2,000,000 (two million dollars) in the aggregate and shall name the
City as an additional insured. District shall furnish a copy of a certificate
of insurance for same, satisfactory to the City at the time of execution of
this agreement. District shall notify the City 1 week before cancellation of
said insurance, and said cancellation shall automatically terminate this
Agreement.
b) Dram Shop Insurance. The District shall carry "dram shop" insurance in
compliance with Iowa Code section 123.92, as amended, in the amount
of $1,000,000 (one million dollars). District shall provide 1 week notice to
the City before cancellation of said insurance, and said cancellation shall
automatically terminate this Agreement.
c) Governmental Immunities Endorsement. District shall obtain a
governmental immunities endorsement that meets the requirements set
forth on Exhibit B, which is attached and incorporated herein.
13. Indemnification. District shall pay on behalf of the City all sums which the
City shall be obligated to pay by reason of any liability imposed upon the City
for damages of any kind resulting from the use of the authorized site or sale,
2
Docusign Envelope ID: 954018FF-9A23-4482-A3D8-C81AA726E5F6
consumption, or possession of alcohol on the authorized site, whether
sustained by any person or person, caused by accident or otherwise and
shall defend at its own expense and on behalf of the City, its officers,
employees and agents any claim against the City, its officers, employees,
and agents arising out of the use of the authorized site or sale, consumption,
or possession of alcohol on the authorized site.
14. Non -Discrimination. District shall not discriminate against any person in
employment or public accommodation because of race, religion, color, creed,
gender identity, sex, national origin, sexual orientation, mental or physical
disability, marital status or age. "Employment" shall include but not be limited to
hiring, accepting, registering, classifying, promoting, or referring to employment.
"Public accommodation" shall include but not be limited to providing goods,
services, facilities, privileges and advantages to the public.
15. Termination. The City may terminate this agreement upon written notice for
violation of any provision of this agreement and for any reason if the City
determines that the authorized site is needed for a public use.
16. Assignment and Subletting. District shall not assign or sublet this agreement
without prior written approval of the City.
17. Entire Agreement. This constitutes the whole agreement between the parties,
and may be modified in writing only, duly signed by the parties.
Dated, this
15th
day of April 2025.
IOWA CITY AND IOWA CITY DOWNTOWN SELF -SUPPORTED
MUNICIPAL IMPROVEMENT DISTRICT
DocuSigned by:
By: 6 y, apw4Cxecutive Director
THE CITY OF IOWA CITY
r —
eoff Kin, Ci y Manager
Approved ,C,)_ ` 1
City Attorney's Office
reet Closure
seconds ago
?r .*+ Share 49 Preview
c-a
11111■t; ;
L�
d layer
_
vidual styles
.z
• Closure
s �
• Closure
jor License
oms
0 0
vidual styles
o .
:trooms
i
,trooms
;trooms
,trooms
:trooms
iap
.x
-;Y) r-Q TVI -v-r1-4.-� rQn
r� nn,- r►,,M,y�ap�
Docusign Envelope ID 954018FF-9A23-4482-A3D8-C81AA726E5F6
EXHIBIT B
Governmental Immunities Endorsement
1. Non -waiver of Government Immunity. The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Iowa City, Iowa
as Additional Insured does not waive any of the defenses of governmental immunity
available to the City of Iowa City, Iowa, under Code of Iowa Section 670.4 as it now
exists and as it may be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of
insurance shall cover only those claims not subject to the defense of governmental
immunity under the Code of Iowa Section 670.4 as it now exists and as it may be
amended from time to time. Those claims not subject to Code of Iowa Section 670.4
shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Iowa City, Iowa shall be
responsible for asserting any defense of governmental immunity, and may do so at
any time and shall do so upon the timely written request of the insurance carrier.
Nothing contained in this endorsement shall prevent the carrier from asserting the
defense of governmental immunity on behalf of the City of Iowa City.
4. Non -Denial of Coverage. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits accruing
to the City of Iowa City, Iowa under this policy for reasons of governmental immunity
unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of
governmental immunity asserted by the City of Iowa City, Iowa.
5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa,
agree that the above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
Item Number: 6.d.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution approving, authorizing and directing the Mayor to execute and the City Clerk to
attest an Agreement by and between the City of Iowa City and Hitchcock Design Group of
Naperville, Illinois to provide engineering consultant services for the City Park Shelters &
Restroom Replacement Project.
Prepared By:
Reviewed By:
Fiscal Impact:
Staff Recommendation
Attachments: Resolution
Agreement
Ben Clark - Senior Engineer
Juli Seydell Johnson - Parks and Recreation Director
Jason Havel - City Engineer
Ron Knoche - Public Works Director
Geoff Fruin - City Manager
$186,500 available in the City Park Shelters & Restroom
Replacement account #R4358.
Approval
Executive Summary:
This agenda item approves the consultant agreement with Hitchcock Design Group of
Naperville, Illinois to provide design, bidding and construction phase services for the City
Park Shelters & Restroom Replacement Project.
Background / Analysis:
The shelters and restrooms in City Park are quickly reaching the end of their serviceable life.
This project will follow the recommendations of the 2016 Lower City Park Master Plan and
2017 Park Master Plan while repositioning and resizing the shelters to meet current and
future use patterns.
For Lower City Park, the project includes demolishing six picnic shelters and one restroom,
replacing them with one large and four small shelters, one new and one renovated restroom.
For Upper City Park, the project includes demolishing four shelters and replacing them with
one large and two small shelters.
The new and renovated facilities will include accessible paths and will be in locations further
from the river as outlined in the Lower City Park Master Plan and in locations of Upper City
Park that account for the tree canopy and new pool layout. Upper City Park restrooms for
park users are part of the new City Park Pool bath house.
Prepared by: Ben Clark, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5436
Resolution No. 25-83
Resolution approving, authorizing and directing the Mayor to
execute and the City Clerk to attest an Agreement by and
between the City of Iowa City and Hitchcock Design Group of
Naperville, Illinois to provide engineering consultant services for
the City Park Shelters & Restroom Replacement Project
Whereas, the shelters and restrooms in City Park are quickly reaching the end of their serviceable
life; and
Whereas, the City desires to demolish six picnic shelters and one restroom, replacing them with
one large and four small shelters, one new and one renovated restroom in Lower City Park; and
Whereas, the City desires to demolish four shelters replacing them with one large and two small
shelters in Upper City Park; and
Whereas, the Project follows recommendations of the 2016 Lower City Park Master Plan and
2017 Park Master Plan while repositioning and resizing the shelters to meet current and future
use patterns; and
Whereas, the City issued a Request for Qualifications, On Call Professional Design and
Engineering Services (2023 2025), October 12, 2022, to private consulting firms interested in
providing design and engineering services related to public improvement projects in the City of
Iowa City; and
Whereas, submittals were received from consulting firms and evaluated by a selection committee;
and
Whereas, the Consultant was selected based on qualifications, key personnel and project
approach; and
Whereas the City has negotiated an Agreement for said consulting services with the Consultant to
provide said services; and
Whereas, it is in the public interest to enter into said Consultant Agreement with the Consultant;
and
Whereas, funds are available in the City Park Shelters & Restroom Replacement account #R4358
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
The Consultant Agreement attached hereto is in the public interest, and is approved as to
form and content.
2. The Mayor and City Clerk are hereby authorized and directed to execute the attached
Consultant Agreement.
3. The City Manager is authorized to execute amendments to the Consultant Agreement as
they may become necessary.
Resolution No. 25-83
Page 2
Passed and approved this 15th day of
Attest:
City Clerk
April 202_
I
M
Approved by/
G
City Attorne s Office
(Sue Dulek — 04/10/2025)
It was moved by 1 ue and seconded by Alter the Resolution be
adopted, and upon roll call there were:
Ayes: Nays:
Absent:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Consultant Agreement
This Agreement, made and entered into this 151h day of April, 2025, by and between the City of Iowa
City, a municipal corporation, hereinafter referred to as the City and Hitchcock Design Group, of
Naperville, Illinois, hereinafter referred to as the Consultant.
Whereas, the City desires to obtain the services of a qualified consulting firm to provide design,
bidding and construction phase services for the City Park Shelters & Restroom Replacement
Project, hereinafter referred to as the Project; and
Whereas, the shelters and restrooms in City Park are quickly reaching the end of their serviceable
life; and
Whereas, the Project will demolish six picnic shelters and one restroom, replacing them with one
large and four small shelters, one new and one renovated restroom in Lower City Park; and
Whereas, the Project will demolish four shelters replacing them with one large and two small
shelters in Upper City Park; and
Whereas, the new and renovated facilities shall include accessible paths and utilities; and
Whereas, the Project follows recommendations of the 2016 Lower City Park Master Plan and 2017
Park Master Plan while repositioning and resizing the shelters to meet current and future use
patterns; and
Whereas, the City issued a Request for Qualifications, On -Call Professional Design and
Engineering Services (2023-2025), October 12, 2022, to private consulting firms interested in
providing design and engineering services related to public improvement projects in the City of Iowa
City; and
Whereas, submittals were received from consulting firms and evaluated by a selection committee;
and
Whereas, the Consultant was selected based on qualifications, key personnel and project
approach; and
Whereas the City has negotiated an Agreement for said consulting services with the Consultant to
provide said services; and
Whereas, it is in the public interest to enter into said Consultant Agreement with the Consultant; and
Whereas, funds are available in the City Park Shelters & Restroom Replacement account #R4358;
and
Now Therefore, it is agreed by and between the parties hereto that the City does now contract with
the Consultant to provide services as set forth herein.
I. Scope of Services
Consultant agrees to perform the following services for the City, and to do so in a timely and
satisfactory manner.
-2-
A. See attached Scope of Services attached hereto and incorporated herein by this
reference.
II. Time of Completion
Consultant shall complete the following phases of the Project in accordance with the schedule
shown. Schedule may adjust as the process evolves, but consultant will endeavor to advance the
project in a timely manner.
A. Design Phase:
Schematic Design Phase...............................................................April-May 2025
Design Development Phase.................................................................. June -July 2025
Construction Documents & Permitting .............................. August -December 2025
(floodplain permitting is likely the longest aspect)
B. Bidding Phase:
Bidding and Negotiation ............................................. December 2025-January 2026
C. Construction Phase:
Construction Observation and Administration Phase...............April 2026-July 2026
Post Construction Services and Project Closeout ..............................August 2026
III. Compensation for Services
Consultant shall be compensated for performing the Scope of Services on an hourly basis in
accordance with the Standard Hourly Fee Schedule, attached hereto and incorporated herein by
this reference, not to exceed One Hundred Eighty -Six Thousand Five Hundred Dollars ($186,500)
as outlined below:
IU
A. Design Phase:
Program and Analysis Phase....................................................................$22,300
SchematicDesign Phase.......................................................................... $21,300
Design Development Phase...............................................................................$35,900
Construction Documents & Permitting.......................................................$44,200
B. Bidding Phase:
Biddingand Negotiation....................................................................................... $9,600
C. Construction Phase
Construction Observation and Administration Phase.....................................$40,600
Post Construction Services and Project Closeout.....................................$12,600
General Terms
A. The Consultant shall not commit any of the following employment practices and
agrees to prohibit the following practices in any subcontracts.
1. To discharge or refuse to hire any individual because of their race, color,
religion, sex, national origin, disability, age, marital status, gender identity, or
sexual orientation.
-3-
2. To discriminate against any individual in terms, conditions, or privileges of
employment because of their race, color, religion, sex, national origin,
disability, age, marital status, gender identity, or sexual orientation.
B. Should the City terminate this Agreement, the Consultant shall be paid for all work
and services performed up to the time of termination. However, such sums shall not
be greater than the "not -to -exceed" amount listed in Section III. The City may
terminate this Agreement upon seven (7) calendar days' written notice to the
Consultant.
C. This Agreement shall be binding upon the successors and assigns of the parties
hereto, provided that no assignment shall be without the written consent of all Parties
to said Agreement.
D. It is understood and agreed that the retention of the Consultant by the City for the
purpose of the Project shall be as an independent contractor and shall be exclusive,
but the Consultant shall have the right to employ such assistance as may be required
for the performance of the Project.
E. It is agreed by the City that all records and files pertaining to information needed by
the Consultant for the project shall be available by said City upon reasonable request
to the Consultant. The City agrees to furnish all reasonable assistance in the use of
these records and files.
F. It is further agreed that no Party to this Agreement shall perform contrary to any
state, federal, or local law or any of the ordinances of the City of Iowa City, Iowa.
G. At the request of the City, the Consultant shall attend meetings of the City Council
relative to the work set forth in this Agreement. Any requests made by the City shall
be given with reasonable notice to the Consultant to assure attendance.
H. The Consultant agrees to furnish, upon termination of this Agreement and upon
demand by the City, copies of all basic notes and sketches, charts, computations,
and any other data prepared or obtained by the Consultant pursuant to this
Agreement without cost, and without restrictions or limitation as to the use relative
to specific projects covered under this Agreement. In such event, the Consultant
shall not be liable for the City's use of such documents on other projects.
The Consultant agrees to furnish all reports, specifications, and drawings with the
seal of a licensed professional as required by Iowa law.
The City agrees to tender the Consultant all fees in a timely manner, excepting,
however, that failure of the Consultant to satisfactorily perform in accordance with
this Agreement shall constitute grounds for the City to withhold payment of the
amount sufficient to properly complete the Project in accordance with this
Agreement.
K. Should any section of this Agreement be found invalid, it is agreed that the remaining
portion shall be deemed severable from the invalid portion and continue in full force
and effect.
L. Original contract drawings shall become the property of the City. The Consultant
shall be allowed to keep reproducible copies for the Consultant's own filing use.
-4-
M. Fees paid for securing approval of authorities having jurisdiction over the Project will
be paid by the City.
N. Upon signing this Agreement, Consultant acknowledges that Section 362.5 of the
Iowa Code prohibits a City officer or employee from having an interest in a contract
with the City, and certifies that no employee or officer of the City, which includes
members of the City Council and City boards and commissions, has an interest,
either direct or indirect, in this Agreement, that does not fall within the exceptions to
said statutory provision enumerated in Section 362.5.
O. Indemnification
To the full extent permitted by law, Consultant agrees to defend, indemnify,
and hold harmless the City against any and all claims, demands, suits, loss,
expenses, including attorney's fees, and for any damages which may be
asserted, claimed or recovered against or from the City by reason of
personal injury, including bodily injury or death, and property damages,
including loss of use thereof, caused by Consultant's negligent acts, errors
or omissions in performing the work and/or services provided by Consultant
to the City pursuant to the provisions of this Agreement.
2. Consultant assumes full responsibility for any and all damage or injuries
which may result to any person or property by reason of Consultant's
negligent acts, errors or omissions in connection with the work and/or
services provided by Consultant to the City pursuant to this Agreement, and
agrees to pay the City for all damages caused to the City's premises resulting
from the negligent acts, errors or omissions of Consultant.
3. The Consultant's obligation to indemnify the City shall not include the
obligation to indemnify, hold harmless, or defend the City against lability,
claims, damages, losses, or expenses, including attorney fees, to the extent
caused by or resulting from the negligent act, error, or omission of the City.
4. For purposes of this paragraph, the term "Consultant" means and includes
the Consultant, its officers, agents, employees, sub -consultants, and others
for whom Consultant is legally liable, and the term "City" means and includes
the City of Iowa City, Iowa its Mayor, City Council members, employees, and
volunteers.
P. Insurance
The Consultant agrees at all times material to this Agreement to have and
maintain processional liability insurance covering the Consultant's liability for
the Consultant's negligent acts, errors and omissions in the sum of
$1,000,000 Per Claim, $1,000,000 Annual Aggregate, or a $1,000,000
Combined Single Limit. To the fullest extent permitted by applicable state
law, a Waiver of Subrogation Clause (endorsement) shall be added.
Consultant agrees to provide the City a certificate of insurance evidencing
that all coverages, limits and endorsements required herein are maintained
and in full force and effect, and certificates of Insurance shall provide a
minimum thirty (30) day endeavor to notify, when available by Consultant's
insurer. If the Consultant receives a non -renewal or cancellation notice from
an insurance carrier affording coverage required herein, or receives notice
-5-
that coverage no longer complies with the insurance requirements herein,
Consultant agrees to notify the City within five (5) business days with a copy
of the non -renewal or cancellation notice.
Q. Standard of Care
The Consultant shall perform services for, and furnish deliverables to, the
City pertaining to the Project as set forth in this Agreement. The Consultant
shall possess a degree of learning, care and skill ordinarily possessed by
reputable professionals, practicing in this area under similar circumstances.
The Consultant shall use reasonable diligence and professional judgment in
the exercise of skill and application of learning.
Consultant represents that the Services and all its components shall be free
of defects caused by negligence; shall be performed in a manner consistent
with the standard of care of other professional service providers in a similar
Industry and application; shall conform to the requirements of this
Agreement; and shall be sufficient and suitable for the purposes expressed
in this Agreement.
3. All provisions of this Agreement shall be reconciled in accordance with the
generally accepted standards of the Engineering Profession.
4. Consultant's obligations under this Section shall exist without regard to, and
shall not be construed to be waived by, the availability or unavailability of any
insurance, either of City or Consultant.
R. There are no other considerations or monies contingent upon or resulting from the
execution of this Agreement, it is the entire Agreement, and no other monies or
considerations have been solicited.
S. This Agreement shall be interpreted and enforced in accordance with the laws of the
State of Iowa. Any legal proceeding instituted with respect to this Agreement shall
be brought in a court of competent jurisdiction in Johnson County, Iowa. The parties
hereto hereby submit to personal jurisdiction therein and irrevocably waive any
objection as to venue therein, including any argument that such proceeding has
been brought in an inconvenient forum.
For the C
By:
Title: Mayor
Date: April 15, 2025
Attest:
For the Consultant
By: Eric Horni /
Title: Senior Principal
Date: April 9 2025
Approved by:
City Attorney's Office
Date
April9, 2025
Juli Seydell Johnson
Director of Parks & Recreation
City of Iowa City
410 East Washington Street
Iowa City, Iowa 52240
RE: City Park Shelter & Restroom Renovations
Dear Juli,
Thank you for asking Hitchcock Design Group to submit this proposal for your City Park
Shelter & Restroom Renovations project. We appreciate the opportunity to continue our
work with you and the City of Iowa City.
PROJECT UNDERSTANOi1N6
Based on our discussions we understand that Iowa Citywould like to remove 10 shelters
and replace them with 8 shelters, add one restroom, and renovate 1 restroom in City Park.
These will be supported by connecting walkways (ADA compliant), site furniture, and
restoration. You would like to complete design this year, bid this winter, and construct in
2026. You have an all-inclusive budget of $1,450,000.
SCOPE OF SERVICES
We will first conduct a comprehensive kick-off discussion with you and the project team
during the Program and Analysis Phase to discuss the details that will guide the process and
to set the schedule for the project through construction. A written project -program will be
prepared summarizing client direction and influential factors and then used as the
foundation of the project's design.
We will then begin the Schematic Design Phase, developing design alternatives and
ultimately a preferred approach. Preliminary cost -estimates, using appropriate
contingencies, will also be prepared to summarize your financial exposure.
We will then begin the Design Development Phase for the elements identified in the
approved Schematic Design, meeting with the project team periodically for input and review
of the progress documents, budget, and submittals from various manufacturers'
representatives.
Following the completion of Design Development, we will advance the Construction
Documentation Phase to prepare documents that are suitable for permitting, bidding, and
construction. We will represent you during bidding and, following the award of construction
contract to a general contractor, we will administer the construction process.
HITCHCOCK GROUP
Please see the Scope of Services for our step-by-step approach.
PROFESSIONAL FEES
Based on the Scope of Services, the Hourly Not to Exceed fees to complete the work as
outlined are as follows:
Preliminary Design Services:
Program and Analysis Phase: $22,300
Schematic Design Phase: $21,300
Final Design Services:
Design Development Phase:
$35,900
Construction Documentation Phase &
$44,200
Permitting Phase:
Bidding and Negotiation Phase:
$9,600
Construction Phase Services:
Construction Administration &
$40,600
Construction Observation:
Contract Close-out
$12,600
Total Fee: $186,500
Reimbursable expenses (printing, mileage, and courier) have been included in the amounts
above.
PROJECT TEAM
Doug Fair will manage our work under my direct supervision and other members of our
Recreation Studio will participate as needed in order to advance the work in a timelyway.
We have included MMS for Survey and Civil Engineering, Design Engineers for Electrical
Engineering, and OPN for Architecture / MEP related to the restroom renovation.
Thank you, again, for the opportunity to continue working with you and the City of Iowa City.
If you have any questions or wish to discuss this proposal further, please do not hesitate to
call.
Sincerely,
Hitchcock Design Group
C/
Eric Hornig, Senior Principal
HITCHCOCK GROUP
Scope of Services
City Park Shelter & Restroom Renovations
PRELIMINARY DESIGN SERVICES
The goal for this part of the agreement is to finalize the program and reach consensus on a
preliminary design approach for the proposed capital improvements.
A. Program and Analysis Phase
Objective: The objective is to confirm the project program, characteristics of the existing
resources, probable permit requirements, owner/users and stakeholder interests and
produce new maps and a program summary that will be the basis for further design.
Process: Specifically, the Consultant will:
1. (Meeting #1: Staff, In person) Conduct a Kick-off and Programming Workshop with City
representatives and the other project team members confirming:
a. Project area ownership and access
b. Goals and objectives
c. Project team structure and responsibilities
d. Constituent interests and jurisdictional agencies
e. Available data and data gathering needs
f. Budgeted costs and potential revenue sources
g. Communications and decision -making protocol
h. Tentative schedule
2. Collect Data for the project area and the immediate surroundings including:
a. Local ordinances and development standards
b. Geo-technical reports (previously prepared by others)
c. Topographic surveys (previously prepared by others)
d. Aerial photography
e. Boundaries, property ownership and easements
f. Pending improvement plans (previously prepared by others)
g. Utility atlases
h. Power and communication utilities
i. National wetland inventory map and waters of the United States
j. USGS soil suitability map information or soil boring information
k. Flood Insurance Rate Map information (ponds and streams)
3. Photograph the Project Area and immediate surroundings to identify readily apparent
physical conditions and patterns of use.
4. Provide a Geotechnical Investigation Report from a qualified geotechnical firm to a
depth range of 5' to 30' at the locations of the proposed improvements to define:
a. Strength, consolidation and bearing capacities of the existing sub -surface
b. Presence of any unsuitable sub -grade materials
HITCHCOCK GROUP
1
5. Provide a hazardous material survey for existing restroom buildings from a qualified
environmental services firm.
6. Provide a Partial Topographic Survey for areas of studyfrom qualified professional land
surveyors, establishing horizontal and vertical ground control and locating natural
features and manmade improvements including:
a. Property lines (if adjacent)
b. Rights -of -way (if adjacent)
c. Easements (if adjacent)
d. Benchmarks visible from project
e. Contours at one -foot intervals
f. Normal water level, at time of survey, including:
g. Top and bottom of bank
h. Shoreline (NWL)
i. Tagged and numbered trees, 4" caliper and larger
j. Aboveground and underground water, storm and sanitary utilities including
size, type, structures, grates and inverts (based on available utility atlases)
k. Aboveground and underground power and communication utilities
1. Buildings and other structures
m. Curbs, walks, roadways, drives, lights, signals and fencing
7. Prepare Base Maps at appropriate scales using the inventoried data and the 2
topographic survey.
8. Prepare a written Project Program that includes:
a. Administrative considerations (approvals, process)
b. Project design program
c. Jurisdictional factors
d. Budget information
e. Project Schedule
9. Review the Program and Analysis by forwarding the written Project Program and
discussing with client representatives and other project team members.
Deliverables: Base Maps, Written Project Program
B. Schematic Design Phase
Objective: The objective is to reach consensus on the type, location, organization, scale,
character and potential cost of specific capital improvements.
Process: Following your approval of the Program and Analysis Phase, the Consultant will:
1. Prepare Schematic Design Alternatives illustrating site geometry and the scale, type and
organization of the project elements including:
a. Pedestrian circulation features
HITCHCOCK GROUP
b. Removal of 10 shelters (4 Upper 16 Lower)
c. Replace 2 small shelters
d. Replace 1 Large Shelter
e. Renovate restroom in Lower by Playground
f. Add one restroom
g. Landscape improvements / Restoration
h. Grading and drainage
2. Prepare Preliminary Engineering Recommendations including:
a. Sewer and water
b. Electrical
3. Prepare the Schematic Design Documents including:
a. Plan view drawings at an appropriate scale
b. Cross sections, elevations and enlarged plan view drawings
c. Representative photographs from other projects
4. Prepare a preliminary Construction Cost Opinion using recognized systems and unit
costs in the Construction Specification Institute format.
5. Coordinate with Manufacturers for the items designated to be manufactured that can
be competitively shopped, forwarding schematic plan, cost information and design
criteria to and request the preparation of equipment options, presentation boards and a 3
materials list in accordance with our criteria.
6. (Meetings #2 & #3: Staff, 1 virtual 11 in person) Review the Schematic Design
Documents with the City at 50% (alternatives) and 100% completion milestones
(preferred strategy). Prepare written summaries of discussions and update the Project
Program following each meeting.
7. (Meeting #4: Parks and Recreation Commission) Present Schematic Design documents
to elected officials for input and approval.
8. (Meeting #5: Public Open House) In a facility designated by the City, prepare for and
conduct the Design Input Meeting to gather input from attendees that are invited by the
City. The purpose of this meeting wilt be to solicit thoughts, ideas and concerns about
the design from the attendees and to carefully record public input. Summarize the
Meeting by creating the Design Input Meeting Report, which includes raw data, attendee
list and conclusions.
Deliverables: Schematic Design Documents, Construction Cost Opinion, Meeting
Summaries
FINAL DESIGN SERVICES
HITCHCOCK GROUP
A. Design Development Phase
Objective: The objective is to reach consensus with the client and jurisdictional authorities
on the final design, probable cost and construction strategy for the proposed
improvements.
Process: Following your approval of the Schematic Design Phase and/or the Master Plan
Phase, the Consultant will:
1. Finalize the Design including size, horizontal and vertical geometry, structure, materials
and finish, as appropriate, for the proposed improvements including:
a. Pedestrian circulation features
b. Removal of 10 shelters (4 Upper 6 Lower)
c. Upper: Replace 2 small shelters Replace 1 Large Shelter
d. Lower: Replace 4 small shelters Replace 1 Large Shelter
e. Renovate restroom in Lower by Playground
f. Add one restroom
g. Site furnishings
h. Landscape improvements / Restoration
i. Grading and drainage
2. Refine the Preliminary Engineering recommendations including:
a. Sewer and water
b. Electrical
c. Low Voltage (communications, BAS, Access Control at Restroom) 4
3. Prepare the Design Development Documents including:
a. Existing conditions information
b. Plan view drawings
c. Descriptive supplemental drawings
d. Outline specifications
e. Product data
4. Prepare a summary of estimated quantities and Update the Construction Cost Opinion.
5. (Meetings #6 & #7: Staff, 1 virtual 11 in person) Review the Design Development
Documents with the City at the 50% and 100% completion milestones. Prepare written
summaries of discussions and update the Project Program following each meeting.
6. (Meeting #8: Parks and Recreation Commission) Present Schematic Design documents
to elected officials for input and approval.
Deliverables: Design Development Document, Construction Cost Opinion, Meeting
Summaries
B. Construction Documentation Phase
HITCHCOCK GROUP
Objective: The objective is to produce the final drawings, specifications, quantity schedules,
project manual and other bid documents that wilt be used to competitively bid and
construct the improvements.
Process: Following approval of the Design Development Phase, the Consultant will:
1. Finalize the Graphic Documentation that will be used to bid and construct
improvements including:
a. Digital construction drawings
b. Cover sheet, notes and legend
c. Existing conditions plans
d. Site preparation plans
e. Grading and drainage plans
f. Erosion Control Plans (SWPPP if needed)
g. Utility plans
h. Layout and materials plans
i. Landscape plans
j. Site construction details
k. Electrical Plans
2. Finalize the Written Documentation that will be used to bid and construct the
improvements including:
a. General and Supplementary Conditions
b. Technical specifications
3. Prepare a summary of estimated quantities and Update the Construction Cost Opinion.
4. (Meetings #9 & #10: Staff, virtual) Review the Construction Documents with the City at
50% and 100% completion milestones. Prepare written summaries of discussions and
update the Project Program following each meeting.
5. Perform internal Quality Management Review of the Construction Documents,
Deliverables: Construction Drawings, Construction Specifications, Construction Cost
Opinion, Meeting Summaries, updated Project Program
C. Permitting Phase
Objective: The objective is to obtain the required permits.
Process: Following approval of the Construction Documentation Phase, the Consultant will:
1. Prepare and assemble Permit Documents including:
a. Site Plan Development Permit
b. Floodptain Development Permit
c. Commercial Building (New) Permit (including COMCheck Envelope
Compliance Certificate if required)
d. NPDES for the IEPA (including SWPPP for NPDES General Permit 2)
HITCHCOCK GROUP
5
2. Submit Permit Documents as required to the respective regulatory agencies.
3. Communicate with you as necessary to Discuss Review Letter(s) received from
regulatory agencies.
4. Make One (1) Set of Authorized Revisions to the appropriate Permit Documents and
resubmit to the respective regulatory agencies.
Deliverables: Permit Documents, Revisions
D. Bidding and Negotiation Phase
Objective: The objective is to help the client select a qualified contractor to construct the
improvements.
Process: Following your approval, the Consultant will:
1. Provide the City with signed and sealed drawings and specifications for placement
in Iowa City's online procurement system for bidding distribution and Management.
2. (Meeting #11: Staff / Prospective Bidders) Conduct a Pre -Bid Meeting for interested
bidders.
3. Answer Questions and Issue Written Addenda, when appropriate, to all bidders
regarding changes to or clarifications of the Contract Documents.
4. Prepare a Bid Tabulation spreadsheet from Bid Opening results recorded by Iowa
City.
5. Perform Reference Checks for the apparent low bidder's references.
6. Issue a Bid Results Summary Letter.
Deliverables: Bidding Documents, Addenda, Bid Tabulation, Results Summary Letter
CONSTRUCTION PHASE SERVICES
The goal for this part of the engagement is to help the client get the improvements
constructed. Following award of the work to a Contractor, Hitchcock Design Group will
provide these Construction Services until Final Acceptance of the work, or until60 days
after Substantial Completion of the work, whichever occurs first.
A. Construction Administration
Objective: The objective is to help you finalize and administer your construction contract
with the Contractor.
Process: Following your award of the work to a Contractor, the Consultant will provide these
Construction Services until Final Acceptance of the work, or until 60 days after Substantial
HITCHCOCK GROUP
Completion of the work, whichever occurs first:
1. Prepare and distribute Issued for Construction documents (IFC).
2. (Construction Meeting #1: Staff / Contractor) Conduct a Pre -Construction Meeting with
the City and the Contractor to review:
a. Contractor mobilization and staging
b. Contractor schedules
c. Contractor submittals
d. Responsibilities
e. Communications
f. Payment procedures
3. Issue Interpretations or Clarifications of the Contract Documents when requested by:
the City or the Contractor.
4. Prepare recommendations for construction Change Orders, as requested by:
a. The City, because of a change that you wish to make to the scope of the
Contractor's work
b. The Contractor because of the discovery of job site conditions that were
concealed or unknown when the Owner / Contractor Agreement was executed,
as approved by you
7
5. Review Submittals and Shop Drawings, product data and material samples which the
Contractor is required to submit for the limited purpose of determining their general
conformance with the design concept and information contained in the Contract
Documents.
6. Review Testing Procedures and data provided by independent testing services.
Deliverables: Owner / Contractor Agreement, Clarifications, Change Orders, Submittal
Review, Testing Review
B. Construction Observation
Objective: The objective is to become familiarized with the progress and quality of the
Contractor's work and to determine if the work is proceeding in general conformance with
the Contract Documents.
Process: During construction, we will:
7. Construction Meetings #2 - #7: Staff / Contractor) Participate in six (6) total progress
meetings with the City and the contractor to become familiarized with the progress and
quality of the Contractor's work and to determine if the work is proceeding in general
conformance with the Contract Documents.
8. Prepare Field Reports of the progress meetings at the site with you and the Contractor.
HITCHCOCK GROUP
Deliverables: Field Reports
C. Contract Close-out
Objective: The objective is to help the client close out its construction contract with the
Contractor.
Process: After the Contractor notifies the client that the work is Substantially Complete,
Hitchcock Design Group will:
1. (Construction Meeting #8: Staff / Contractor) Participate in one (1) site visit to conduct a
walk through and prepare a Punch List upon substantial completion of the construction
of the work documented by us.
2. Review Contract Close-out Submittals required as provided by the Contractor, such as
but not limited to:
a. Operating and maintenance manuals
b. As -built record drawings
c. Labor and material lien waivers
d. Payment applications
3. Provide as -built topographic survey of newly constructed improvements.
4. (Construction Meeting #9: Staff / Contractor) Participate in one (1) site visit to conduct a
walk through to verify completion of a punch list items and Establish Final Acceptance. 8
5. Prepare Final Payment Recommendations regarding the Contractor's request for
acceptance of substantially and finally completed work.
Deliverables: Punch List, Closeout Submittal Review, Final Payment Recommendation
GENERAL PROJECT ADMINISTRATION
We will manage the performance of our own work throughout the term of the contract by
providing the following services:
A. Communications
1. Schedule, create agendas and summarize the highlights of periodic meetings
2. Rehearse, attend and present at public forums identified
3. Collect and disseminate communications from other parties
4. Periodically inform your representative about our progress
B. Schedules
1. Create, periodically update and distribute the project schedule
2. Coordinate the activities of our staff and our consultants
C. Staffing
HITCHCOCK GROUP
1. Select and assign staff members and consultants to appropriate tasks and services
2. Prepare and administer consultant agreements
D. File Maintenance
1. Establish and maintain appropriate correspondence, financial, drawing and data
files
2. Obtain appropriate insurance certificates from consultants
3. Maintain appropriate time and expense records
ADDITIONAL SERVICES
We may provide additional services, at your approval that are not included in the Basic
Services, such as:
1. Revisions to previously -completed and approved phases of the Basic Services
2. The services of additional consultants not specified in the proposal documents
3. Meetings with you or presentations to other parties not specified in the Basic
Services
4. Detailed quantity estimates and construction cost opinions using data or formats
other than our own
5. Detailed written summaries of our work or our recommendations
6. Services rendered after the time limitations set forth in this contract
7. Services required due to the discovery of concealed conditions, actions of others, 9
or other circumstances beyond our control
8. Services required to restart the project if you suspend our work at your convenience
for more than 90 days during the performance of our services
9. Preparation of segregated or multiple contract bid sets or more than one Owner /
Contractor agreement
10. Services rendered after Final Acceptance of the Contractor's work or services
rendered more than 60 days after Substantial Completion of the Contractor's work
Services or meetings not specified in this scope of services will be considered additional
services. If circumstances arise during our performance of the outlined services that we
believe require additional services, we will promptly notify you about the nature, extent and
probable additional cost of the additional services, and perform only such additional
services following your written authorization.
HITCHCOCK GROUP
Standard Billing Rates and Expenses
Senior Principal
$265
Principal
$235
Senior Associate
$195
Associate
$160
Junior Associate
$145
Reimbursable Expenses
In addition to our standard hourly rates, we invoice qualified sub -consultant fees, travel, and
reproduction expenses per the terms of our agreement with mileage invoiced at the current IRS
reimbursement rate.
Item Number: 6.e.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution authorizing acceptance of STBG Funds from the Iowa Department of
Transportation and authorizing the Mayor to sign the Project Agreement for the Taft Avenue
Reconstruction Project.
Prepared By: Scott Sovers - Assistant City Engineer
Reviewed By: Jason Havel - City Engineer
Ron Knoche - Public Works Director
Geoff Fruin - City Manager
Fiscal Impact: None.
Staff Recommendation: Approval
Attachments: Resolution
STBG Agreement
Executive Summary:
This agreement authorizes the City of Iowa City to accept Surface Transportation Block Grant
Funding (STBG) in the amount of $3,500,000 from the Iowa Department of Transportation for
the Taft Avenue Reconstruction Project. The overall estimated cost of the project is
$13,200,000.
The project includes reconstructing Taft Avenue, from American Legion Road to Lower West
Branch Road SE, from a rural to an urban roadway with sidewalks. The project also includes
on -street bike lanes and new public utilities (storm sewer, water main, and sanitary sewer).
Background / Analysis:
Taft Avenue is currently a rural roadway (one -lane in either direction) with ditches. To
support projected growth within the southeast quadrant of the City and improve future access
to the City's industrial park, the roadway and associated infrastructure needs upgrading to
current minor arterial design standards.
Identifying this future need, in 2015, the City prepared functional design plans for Taft
Avenue (American Legion Road to E Court Street) to establish design parameters and
identify preliminary right-of-way needs. This project will extend the northern limits from E
Court Street to Lower West Branch Road SE. The previous functional design plans, in
addition to the plans from the adjacent American Legion Road Improvements Project, will act
as a baseline for the project as it progresses through design.
Prepared by: Scott Sovers, Engineering Division, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5142
Resolution No. 25-84
Resolution authorizing acceptance of STBG Funds from the Iowa
Department of Transportation and authorizing the Mayor to sign
the Project Agreement for the Taft Avenue Reconstruction Project
Whereas, the Iowa Department of Transportation (IDOT) uses Surface Transportation Block Grant
(STBG) funds for construction, reconstruction, rehabilitation, resurfacing, restoration and
operational or safety improvement projects on public roads; and
Whereas, the Metropolitan Planning Organization of Johnson County (MPOJC) programmed
$3,500,000 in STBG funding for the Taft Avenue Reconstruction Project [STP-U-3715(672)--70-52]
in the Federal Fiscal Year (FFY) 2025-2028 Transportation Improvement Program (TIP); and
Whereas, projects utilizing STBG funds are eligible for up to 80% reimbursement of all authorized
and approved eligible Project activities; and
Whereas, this project is currently programmed in FFY 2025 of the TIP and is expected to be bid in
2026 with construction to follow in 2027 through 2028; and
Whereas, the City of Iowa City wishes to accept STBG funding for the Taft Avenue Reconstruction
Project; and
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
1. The Mayor is authorized to sign and the City Clerk to attest the Iowa Department of
Transportation Federal -aid Agreement for Surface Transportation Block Grant Program
Project No. STP-U-3715(672)--70-52, in a form approved by the City Attorney.
Passed and approved this 15th day of April
Attest:—tcic'
City berk
2025 .
I �
Ma
Approved bY
City orney's Office
(Liz Craig — 04/10/2025)
It was moved by Moe and seconded by
adopted, and upon roll call there were:
Ayes:
Nays:
Alter the Resolution be
Absent:
Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
June 2024
IOWA DEPARTMENT OF TRANSPORTATION
Federal -aid Agreement
for a Surface Transportation Block Grant Program Project
RECIPIENT: City of Iowa City
Project No.: STP-U-3715(672)--70-52
Iowa DOT Agreement No.: 6-25-STP-U-012
CFDA No. and Title: 20.205 Highway Planning and Construction
This is an agreement between the City of Iowa City, Iowa (hereinafter referred to as the RECIPIENT) and the
Iowa Department of Transportation (hereinafter referred to as the DEPARTMENT). Iowa Code Sections 306A.7
and 307.44 provide for the RECIPIENT and the DEPARTMENT to enter into agreements with each other for the
purpose of financing transportation improvement projects on streets and highways in Iowa with Federal funds.
Federal regulations require Federal funds to be administered by the DEPARTMENT.
The RECIPIENT has received Federal funding through the Surface Transportation Block Grant (STBG) Program.
STGB funds are available for construction, reconstruction, rehabilitation, resurfacing, restoration and operational
or safety improvement projects on Federal -aid highways, bridges (as defined by the National Bridge Inspection
Standards) on any public road, and several other types of projects, as specified in 23 U.S.C. 133(b). Federal -aid
highways include all Federal Functional Classifications, except for rural minor collectors or local roads.
Pursuant to the terms of this agreement, applicable statutes, and administrative rules, the DEPARTMENT agrees
to provide STBG funding to the RECIPIENT for the authorized and approved costs for eligible items associated
with the project.
Under this agreement, the parties further agree as follows:
1. The RECIPIENT shall be the lead local governmental agency for carrying out the provisions of this
agreement.
2. All notices required under this agreement shall be made in writing to the appropriate contact person. The
DEPARTMENT's contact person will be the Local Systems Project Development Engineer, Jenifer Bates,
and the Local Systems Eastern Region Field Engineer, Dillon Feldmann. The RECIPIENT's contact
person shall be the City Engineer.
3. The RECIPIENT shall be responsible for the development and completion of the following described
STBG project:
PCC Pavement - Grade and Replace; In the City of Iowa City, on Taft Avenue, from Lower West Branch
Road S to American Legion Road
4. Eligible project activities will be limited to actual construction costs.
5. Costs associated with work outside the eligible project construction limits, routine maintenance activities,
operations, and monitoring expenses are not eligible. In addition, administrative costs, engineering,
inspection, legal, right of way, utility relocations, activities necessary to comply with Federal and State
environmental or permit requirements, and fees or interest associated with bonds or loans are not eligible.
6. The RECIPIENT shall receive reimbursement for costs of authorized and approved eligible project
activities from STBG funds. The portion of the project costs reimbursed by STBG funds shall be limited to
a maximum of either 80 percent of eligible costs or the amount of $3,500,000, as stipulated in the
Metropolitan Planning Organization of Johnson County current Transportation Improvement Program
(TIP) and approved in the current Statewide Transportation Improvement Program (STIP), whichever is
less.
7. The RECIPIENT shall pay for all project costs not reimbursed with STBG funds.
STBG Program Agreement
Page 2
8. If the project described in Section 3 drops out of the Metropolitan Planning Organization of Johnson
County current TIP or the approved current STIP prior to obligation of Federal funds, and the RECIPIENT
fails to reprogram the project in the appropriate TIP and STIP within 3 years, this agreement shall
become null and void.
9. The RECIPIENT shall let the project for bids through the DEPARTMENT
10. If any part of this agreement is found to be void and unenforceable, the remaining provisions of this
agreement shall remain in effect.
11. It is the intent of both parties that no third -party beneficiaries be created by this agreement
12. This agreement and the attached Exhibit 1 constitute the entire agreement between the DEPARTMENT
and the RECIPIENT concerning this project. Representations made before the signing of this agreement
are not binding, and neither party has relied upon conflicting representations in entering into this
agreement. Any change or alteration to the terms of this agreement shall be made in the form of an
addendum to this agreement. The addendum shall become effective only upon written approval of the
DEPARTMENT and the RECIPIENT.
IN WITNESS WHEREOF, each of the parties hereto has executed this agreement as of the date shown opposite
its signature below.
By _
Mayor
Title of city official
Kellie Grace
City Signature Block
Date — April 1 5 , 2025
Approved By
City Attorneys Office
certify that I am the City Clerk of Iowa City, and
that Bruce Teague who signed said Agreement for and on behalf of the city was duly
authorized to execute the same by virtue of a formal resolution duly passed and adopted by the city on the
15th dayof April
Signed �J i -c \ l('iC:' _ Date
City Clerk of Iowa City, Iowa
2025
April 15
202_�_
IOWA DEPARTMENT OF TRANSPORTATION
Transportation Deve�lopme Division
By — Date _ April 23 25
illon Feldmann, P.E
Local Systems Field Engineer
Eastern Region
June 2024
EXHIBIT 1
General Agreement Provisions for use of Federal Highway Funds on Non -primary Projects
Unless otherwise specified in this agreement, the RECIPIENT shall be responsible for the following:
General Requirements
a. The RECIPIENT shall take the necessary actions to comply with applicable State and Federal laws and
regulations. To assist the RECIPIENT, the DEPARTMENT has provided guidance in the Federal -aid
Project Development Guide (Guide) and the Instructional Memorandums to Local Public Agencies (I.M.$)
that are referenced by the Guide. Both are available on-line at: hftps://Www.iowadot.gov/local systems!
publications/im/ba ims.htm. The RECIPIENT shall follow the applicable procedures and guidelines
contained in the Guide and I.M.s in effect at the time project activities are conducted.
b. In accordance with Title VI of the Civil Rights Act of 1964 and associated subsequent nondiscrimination
laws, regulations, and executive orders, the RECIPIENT shall not discriminate against any person on the
basis of race, color, national origin, sex, age, or disability. In accordance with Iowa Code Chapter 216, the
RECIPIENT shall not discriminate against any person on the basis of race, color, creed, age, sex, sexual
orientation, gender identity, national origin, religion, pregnancy, or disability. The RECIPIENT agrees to
comply with the requirements outlined in I.M. 1.070, Title VI and Nondiscrimination Requirements, which
includes the requirement to provide a copy of the Subrecipient's Title VI Plan or Agreement and Standard
DOT Title VI Assurances to the DEPARTMENT.
c. The RECIPIENT shall comply with the requirements of Title II of the Americans with Disabilities Act of
1990 (ADA), Section 504 of the Rehabilitation Act of 1973 (Section 504), the associated Code of Federal
Regulations (CFR) that implement these laws, and the guidance provided in I.M. 1.080, ADA
Requirements. When bicycle and/or pedestrian facilities are constructed, reconstructed, or altered, the
RECIPIENT shall make such facilities compliant with the ADA and Section 504, which includes following
the requirements set forth in Chapter 12A for sidewalks and Chapter 12B for Bicycle Facilities of the Iowa
DOT Design Manual.
d. To the extent allowable by law, the RECIPIENT agrees to indemnify, defend, and hold the
DEPARTMENT harmless from any claim, action or liability arising out of the design, construction,
maintenance, placement of traffic control devices, inspection, or use of this project. This agreement to
indemnify, defend, and hold harmless applies to all aspects of the DEPARTMENT's application review
and approval process, plan and construction reviews, and funding participation.
As required by the 2 CFR 200.501 "Audit Requirements," anon -Federal entity expending $750,000 or
more in Federal awards in a year shall have a single or program -specific audit conducted for that year in
accordance with the provision of that part. Auditee responsibilities are addressed in Subpart F of 2 CFR
200. The Federal funds provided by this agreement shall be reported on the appropriate Schedule of
Expenditures of Federal Awards (SEFA) using the Catalog of Federal Domestic Assistance (CFDA)
number and title as shown on the first page of this agreement. If the RECIPIENT will pay initial project
costs and request reimbursement from the DEPARTMENT, the RECIPIENT shall report this project on its
SEFA. If the DEPARTMENT will pay initial project costs and then credit those accounts from which initial
costs were paid, the DEPARTMENT will report this project on its SEFA. When the DEPARTMENT will
pay initial project costs and credit those accounts from which initial costs were paid, the RECIPIENT shall
not report this project on its SEFA.
f. The RECIPIENT shall supply the DEPARTMENT with all information required by the Federal Funding
Accountability and Transparency Act of 2006 and 2 CFR Part 170.
g. The RECIPIENT shall comply with the following Disadvantaged Business Enterprise (DBE) requirements:
i. The RECIPIENT shall not discriminate on the basis of race, color, national origin, or sex in the award
and performance of any DOT -assisted contract or in the administration of its DBE program or the
requirements of 49 CFR Part 26. The RECIPIENT shall take all necessary and reasonable steps
under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of DOT -assisted
contracts.
STBG Program Agreement
Page 2
ii. The RECIPIENT shall comply with the requirements of I.M. 5.010, DBE Guidelines.
iii. The DEPARTMENT's DBE program, as required by 49 CFR Part 26 and as approved by the Federal
Highway Administration (FHWA), is incorporated by reference in this agreement. Implementation of
this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this
agreement. Upon notification to the RECIPIENT of its failure to carry out its approved program, the
DEPARTMENT may impose sanctions as provided for under Part 26 and may, in appropriate cases,
refer the matter for enforcement under 18 U.S.C. 1001 and the Program Fraud Civil Remedies Act of
1986 (31 U.S.C. 3801 et seq.).
h. Termination of funds. Notwithstanding anything in this agreement to the contrary, and subject to the
limitations set forth below, the DEPARTMENT shall have the right to terminate this agreement without
penalty and without any advance notice as a result of any of the following: 1) The Federal government,
legislature or governor fail in the sole opinion of the DEPARTMENT to appropriate funds sufficient to
allow the DEPARTMENT to either meet its obligations under this agreement or to operate as required and
to fulfill its obligations under this agreement; or 2) If funds are de -appropriated, reduced, not allocated, or
receipt of funds is delayed, or if any funds or revenues needed by the DEPARTMENT to make any
payment hereunder are insufficient or unavailable for any other reason as determined by the
DEPARTMENT in its sole discretion; or 3) If the DEPARTMENT's authorization to conduct its business or
engage in activities or operations related to the subject matter of this agreement is withdrawn or
materially altered or modified. The DEPARTMENT shall provide the RECIPIENT with written notice of
termination pursuant to this section.
2. Programming and Federal Authorization
a. The RECIPIENT shall be responsible for including the project in the appropriate Regional Planning
Affiliation (RPA) or Metropolitan Planning Organization (MPO) Transportation Improvement Program
(TIP). The RECIPIENT shall also ensure that the appropriate RPA or MPO, through their TIP submittal to
the DEPARTMENT, includes the project in the Statewide Transportation Improvement Program (STIP). If
the project is not included in the appropriate fiscal year of the STIP, Federal funds cannot be authorized.
b. The RECIPIENT must show federal aid funding activity to receive the programmed amount authorized for
the project. If there is no funding activity for nine or more months after the previous funding activity, the
remaining unused programmed amount will be de -obligated from the project and there will be no further
federal aid reimbursement issued for the project. If the RECIPIENT knows in advance that funding activity
will not occur for nine months or more, the DEPARTMENT's Contract Administrator needs to be notified
to determine if programming or authorization of funds can be adjusted or other options can be explored.
c. Upon receipt of Federal Highway Administration (FHWA) authorization a Federal Award Identification
Number (FAIN) will be assigned to this project by the FHWA based on a methodology that incorporates
identifying information about the federal award such as the federal funding program code and the federal
project number. This FAIN will be used to identify this project and award on the federal government's
listing of financial assistance awards consistent with the Federal Funding Accountability and
Transparency Act of 2006 (FFATA) at usaspending.gov.
d. A period of performance for this federal funding award will be established at the time of FHWA
authorization. The start date of the period of performance will be the FHWA authorization date. The
project end date (PED) will be determined according to the methodology in I.M. 1.200, Federal Funds
Management. Costs incurred before the start date or after the PIED of the period of performance will not
be eligible for reimbursement.
3. Design
a. The RECIPIENT shall be responsible for the design of the project, including all necessary plans,
specifications, and estimates (PS&E). The project shall be designed in accordance with the design
guidelines provided or referenced by the DEPARTMENT in the Guide and applicable I.M.s.
4. Environmental Requirements and other Agreements or Permits
STBG Program Agreement
Page 3
a. The RECIPIENT shall take the appropriate actions and prepare the necessary documents to fulfill the
FHWA requirements for project environmental studies including historical/cultural reviews and location
approval. The RECIPIENT shall complete any mitigation agreed upon in the FHWA approval document.
These procedures are set forth in I.M. 3.020, Concept Statement Instructions; 4.020, NEPA Process;
4.110 Threatened and Endangered Species; and 4.120, Cultural Resource Regulations.
b. If farmland is to be acquired, whether for use as project right-of-way or permanent easement, the
RECIPIENT shall follow the procedures in I.M. 4.170, Farmland Protection Policy Act.
c. The RECIPIENT shall obtain project permits and approvals, when necessary, from the Iowa Department
of Cultural Affairs (State Historical Society of Iowa; State Historic Preservation Officer), Iowa Department
of Natural Resources, U.S. Coast Guard, U.S. Army Corps of Engineers, the DEPARTMENT, or other
agencies as required. The RECIPIENT shall follow the procedures in I.M. 4.130, 404 Permit Process;
4.140, Storm Water Permits; 4.150 Iowa DNR Floodplain Permits and Regulations, 4.190, Highway
Improvements in the Vicinity of Airports or Heliports; and 4.160, Asbestos Inspection, Removal, and
Notification Requirements.
d. In all contracts entered into by the RECIPIENT, and all subcontracts, in connection with this project that
exceed $100,000, the RECIPIENT shall comply with the requirements of Section 114 of the Clean Air Act
and Section 308 of the Federal Water Pollution Control Act, and all their regulations and guidelines. In
such contracts, the RECIPIENT shall stipulate that any facility to be utilized in performance of or to benefit
from this agreement is not listed on the Environmental Protection Agency (EPA) List of Violating Facilities
or is under consideration to be listed.
5. Right -of -Way, Railroads and Utilities
a. The RECIPIENT shall acquire the project right-of-way, whether by lease, easement, or fee title, and shall
provide relocation assistance benefits and payments in accordance with the procedures set forth in I.M.
3.600, Right -of -Way Acquisition, and the DEPARTMENT's Right of Way Bureau Local Public Agency
Manual. The RECIPIENT shall contact the DEPARTMENT for assistance, as necessary, to ensure
compliance with the required procedures, even though no Federal funds are used for right-of-way
activities. Acquisition activities may begin prior to FHWA Environmental Concurrence. However, such
acquisitions cannot affect the National Environmental Policy Act (NEPA) decision making process.
b. If a railroad crossing or railroad tracks are within or adjacent to the project limits, the RECIPIENT shall
obtain agreements, easements, or permits as needed from the railroad. The RECIPIENT shall follow the
procedures in I.M. 3.670, Work on Railroad Right -of -Way and I.M. 3.680, Federal -aid Projects Involving
Railroads.
c. The RECIPIENT shall comply with the DEPARTMENT'S Policy for Accommodating Utilities on the County
and City Non -Primary Federal -aid Road System for projects on non -primary Federal -aid highways. For
projects connecting to or involving some work inside the right-of-way for a primary highway, the
RECIPIENT shall follow the DEPARTMENT's Policy for Accommodating and Adiustment of Utilities on
Primary Road System. The RECIPIENT should also use the procedures outlined in I.M. 3.640, Utility
Accommodation and Coordination, as a guide to coordinating with utilities.
6. Contract Procurement
The following provisions apply only to projects involving physical construction or improvements to
transportation facilities:
a. The project plans, specifications, and cost estimate (PS&E) shall be prepared and certified by a
professional engineer, architect, or landscape architect, as applicable, licensed in the State of Iowa.
b. For projects let through the DEPARTMENT, the RECIPIENT shall be responsible for the following:
i. Prepare and submit the PS&E and other contract documents to the DEPARTMENT for review and
approval in accordance with I.M. 3.700, Check and Final Plans and I.M. 3.500, Bridge or Culvert
Plans, as applicable.
STBG Program Agreement
Page 4
ii. The contract documents shall use the DEPARTMENT's Standard Specifications for Highway and
Bridge Construction. Prior to their use in the PS&E, specifications developed by the RECIPIENT for
individual construction items shall be approved by the DEPARTMENT.
iii. Follow the procedures in I.M. 5.030, Iowa DOT Letting Process, to analyze the bids received, make a
decision to either award a contract to the lowest responsive bidder or reject all bids, and if a contract
is awarded, execute the contract documents in Doc Express.
c. For projects that are let locally by the RECIPIENT, the RECIPIENT shall follow the procedures in I.M.
5.120, Local Letting Process - Federal -aid.
d. The RECIPIENT shall forward a completed Project Development Certification (Form 730002) to the
DEPARTMENT in accordance with I.M. 3.710, Project Development Certification Instructions. The project
shall not receive FHWA Authorization for construction or be advertised for bids until after the
DEPARTMENT has reviewed and approved the Project Development Certification.
e. If the RECIPIENT is a city, the RECIPIENT shall comply with the public hearing requirements of the Iowa
Code section 26.12.'
f. The RECIPIENT shall not provide the contractor with notice to proceed until after receiving notice in Doc
Express that the Iowa DOT has concurred in the contract execution.
7. Construction
a. A full-time employee of the RECIPIENT shall serve as the person in responsible charge of the
construction project. For cities that do not have any full-time employees, the mayor or city clerk will serve
as the person in responsible charge, with assistance from the DEPARTMENT.
b. Traffic control devices, signing, or pavement markings installed within the limits of this project shall
conform to the "Manual on Uniform Traffic Control Devices for Streets and Highways" per 761 IAC
Chapter 130. The safety of the general public shall be assured through the use of proper protective
measures and devices such as fences, barricades, signs, flood lighting, and warning lights as necessary.
c. For projects let through the DEPARTMENT, the project shall be constructed under the DEPARTMENT's
Standard Specifications for Highway and Bridge Construction and the RECIPIENT shall comply with the
procedures and responsibilities for materials testing according to the DEPARTMENT's Materials I.M.s.
Available on-line at: http://www.iowadot.gov/eri/current/IM/navigationinay.htm.
d. For projects let locally, the RECIPIENT shall provide materials testing and certifications as required by the
approved specifications.
e. If the DEPARTMENT provides any materials testing services to the RECIPIENT, the DEPARTMENT will
bill the RECIPIENT for such testing services according to its normal policy as per Materials I.M. 103.
Inspection Services Provided to Counties, Cities, and Other State Agencies.
f. The RECIPIENT shall follow the procedures in I.M. 6.000, Construction Inspection, and the
DEPARTMENT's Construction Manual, as applicable, for conducting construction inspection activities.
8. Reimbursements
a. After costs have been incurred, the RECIPIENT shall submit to the DEPARTMENT periodic itemized
claims for reimbursement for eligible project costs. Requests for reimbursement shall be made at least
once every six months, but not more than bi-weekly. The RECIPIENT shall follow I.M. 6.020 Payment and
Reimbursement Processes for requesting reimbursement.
b. To ensure proper accounting of costs, reimbursement requests for costs incurred prior to June 30 shall be
submitted to the DEPARTMENT by August 1.
c. Reimbursement claims shall include a certification that all eligible project costs, for which reimbursement
is requested, have been reviewed by an official or governing board of the RECIPIENT, are reasonable
STBG Program Agreement
Page 5
and proper, have been paid in full, and were completed in substantial compliance with the terms of this
agreement.
d. Reimbursement claims shall be submitted on forms identified by the DEPARTMENT along with all
required supporting documentation. The DEPARTMENT will reimburse the RECIPIENT for properly
documented and certified claims for eligible project costs. The DEPARTMENT may withhold up to 5% of
the Federal share of construction costs or 5% of the total Federal funds available for the project,
whichever is less. Reimbursement will be made either by State warrant or by crediting other accounts
from which payment was initially made. If, upon final audit or review, the DEPARTMENT determines the
RECIPIENT has been overpaid, the RECIPIENT shall reimburse the overpaid amount to the
DEPARTMENT. After the final audit or review is complete and after the RECIPIENT has provided all
required paperwork, the DEPARTMENT will release the Federal funds withheld.
e. The total funds collected by the RECIPIENT for this project shall not exceed the total project costs. The
total funds collected shall include any Federal or State funds received, any special assessments made by
the RECIPIENT (exclusive of any associated interest or penalties) pursuant to Iowa Code Chapter 384
(cities) or Chapter 311 (counties), proceeds from the sale of excess right-of-way, and any other revenues
generated by the project. The total project costs shall include all costs that can be directly attributed to the
project. In the event that the total funds collected by the RECIPIENT do exceed the total project costs, the
RECIPIENT shall either:
i. In the case of special assessments, refund to the assessed property owners the excess special
assessments collected (including interest and penalties associated with the amount of the
excess), or
ii. Refund to the DEPARTMENT all funds collected in excess of the total project costs (including
interest and penalties associated with the amount of the excess) within 60 days of the receipt of
any excess funds. In return, the DEPARTMENT will either credit reimbursement billings to the
FHWA or credit the appropriate State fund account in the amount of refunds received from the
RECIPIENT.
9. Project Close-out
a. Within 30 days of completion of construction or other activities authorized by this agreement, the
RECIPIENT shall provide written notification to the DEPARTMENT. The RECIPIENT shall follow and
request a final audit, in accordance with the procedures in I.M. 6.110, Final Review, Audit, and Close-out
Procedures for Federal -aid, Federal -aid Swap, and Farm -to -Market Projects. Failure to comply with the
procedures will result in loss of federal funds remaining to be reimbursed and the repayment of funds
already reimbursed. The RECIPIENT may be suspended from receiving federal funds on future projects.
b. The RECIPIENT shall provide a certification by a professional engineer, architect, or landscape architect
as applicable, licensed in the State of Iowa, indicating the construction was completed in substantial
compliance with the project plans and specifications.
c. Final reimbursement of Federal funds shall be made only after the DEPARTMENT accepts the project as
complete.
d. The RECIPIENT shall maintain all books, documents, papers, accounting records, reports, and other
evidence pertaining to costs incurred for the project. The RECIPIENT shall also make these materials
available at all reasonable times for inspection by the DEPARTMENT, FHWA, or any authorized
representatives of the Federal Government. Copies of these materials shall be furnished by the
RECIPIENT if requested. Such documents shall be retained for at least 3 years from the date of FHWA
approval of the final closure document. Upon receipt of FHWA approval of the final closure document, the
DEPARTMENT will notify the RECIPIENT of the record retention date.
e. The RECIPIENT shall maintain, or cause to be maintained, the completed improvement in a manner
acceptable to the DEPARTMENT and the FHWA.
Item Number: 6.f.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution authorizing the procurement of one (1) new Vermeer Compost Turner for Landfill
Operations.
Prepared By: Dan Striegel - Equipment Superintendent
Reviewed By: Ron Knoche - Director of Public Works
Geoff Fruin - City Manager
Fiscal Impact: $662,882.44 after contract discounts; funds for this
purchase are available in CIP Project L3347 and via grants
from EPA and DNR.
Staff Recommendation: Approval
Attachments: Resolution
4.4.25 CT718 Quote- Iowa City
Executive Summary:
At the April 15, 2025 City Council meeting, consideration will be given to a resolution
authorizing the purchase of one new Vermeer CT718 track -type compost turner from
Vermeer Manufacturing Company in Pella, IA. Sourcewell cooperative purchasing contract
#030923-VRM will be utilized for this procurement.
Background / Analysis:
The Landfill currently uses an end loader to turn compost windrows. In conjunction with the
compost facility expansion and improvements in CIP Project L3333, a compost turner
(budgeted separately in CIP Project L3347) will allow staff to process more material faster.
The compost turner is also supported with EPA funds through the Solid Waste Infrastructure
for Recycling (SWIFR) program at $200,000 and with Iowa DNR funds through the
Environmental Management System program at $100,000.
Compost is currently turned once per month per the minimum permit requirement; a turner
would expedite the turning process and allow for additional turns per month. More frequent
turning accelerates material breakdown, allowing staff to process material faster and reduce
the processing time by about half. The additional space and more frequent/efficient turning
with a turner would allow the City to process thousands more tons of organics, significantly
increasing organics diversion from the landfill.
Prepared by: Dan Striegel, Equipment Superintendent, 1200 S. Riverside Drive, Iowa City, IA 52246 (319) 356-5197
Resolution No. 25-85
Resolution authorizing the procurement of one (1) new Vermeer
Compost Turner for Landfill Operations.
Whereas, Landfill Operations has funds budgeted in fiscal year 2025 for the addition of one (1)
compost tuner; and
Whereas, Sourcewell cooperative contract #030923-VRM will be utilized for the procurement of the
compost turner; and
Whereas, the total purchase price of the compost turner is $662,882.44; and
Whereas, the amount exceeds the City Manager's spending authority of $200,000.00, thus requiring
City Council approval; and
Whereas, funds for this purchase are available in CIP Project L3347 and via EPA and DNR grants;
and
Whereas, approval of this procurement is in the public interest.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The proposed procurement based on the attached quote is approved.
2. The City Manager is authorized to take the steps necessary to effectuate the purchase, with the
City Attorney's Office approval of any contract, and to approve any change orders that may
develop during the manufacturing process.
Passed and approved this 15th day of April
2025.
,Q A-
MSy&
Approved by
Attest:
Ci y Clerk City Attorney's ice - 04/10/2025
Resolution No. 25-85
Page No. 2
It was moved by Moe , and seconded by Alter that the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Vermeer
6L,iv
Prepared For:
SOURCEWELL RECYCLING AND REPURPOSING 030923-VRM
City of Iowa City
1200 S. Riverside Drive
Iowa City, Iowa 52246
100902
030923-VRM
Description
CT718
Vermeer Dealer:
638 - VERMEER SALES & SERVICE - IOWA
563-886-2444
DUKE.REYNOLDS@VERMEERIOWA.COM
101 COMMERCE BLVD
TIPTON, IA 52772
Date:4/4/2025
Pricing Valid Until: 5/4/2025
Qty
CT718002 CT718 SELF-PROPELLED DRUM STYLE COMPOST TURN ER7' X 18' WINDROW CAPACITY includes 1
Quote Number: Q-34557
PT Tech HPTO Hydraulic Clutch, 757L (200 gallon) fuel tank, hydraulically retracted cab with filtered heat
and air conditioning, deluxe seat with operator presence and seat mounted joysticks, passenger seat,
micro -processor based machine controls, operating lights, front and rear containment curtains, side and
rearview camera system, 7" color instrument display, and AM/FM/WB/BT radio.
------------------------------------------ - - - - -------- - - - - --
CT718010 540 HP CAT C15 TIER 4 FINAL ENGINE PACKAGEincludes exhaust after treatment, 34.1L (9 1
gallon) DEF tank, reversing fan, ether start assist, and block heater
-------------------------------------- ------------------
CT718085 TWISTED FLAIL HELICAL DRUM 1
-------------------------------------- ------------------
CT718072 420 RPM DRUM SPEED 1
-------------------------------------- --------------------
CT718108 FLAIL-20 DEG HARD SURFACED 1
-------------------------------- - - - - --- - - - - -- - - - - - - - - - - - - - - - - - - - - - - -
CT718190 CT718 FULL TRACK 1
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
CT718193 TRACK CHAIN W/20" TRIPLE GROUSER 1
---------------------------------------------------------------------------
CT718AM010 -TELEMATICS 1
---------------------------------------------------------------------------
Subtotal Price Equipment (each) $ 765,899.10
---------------------------------------------------------------------------
Freight and Prep(each) $ 5,500.00
---------------------------------------------------------------------------
Quantity of Complete Units 1
---------------------------------------------------------------------------
Subtotal: $ 771,399.10
Additional Items
---------------------------------------------------------------------
2:Additional Dealer Discount 1 $-108,516.66
---------------------------------------------------------• ----------------
Subtotal: $-108,516.66
---------------------------------------------------------------------------
Grand Total: $ 662,882.44
Quote Number:Q-34557 Page 1 of 2
Date:4/4/2025
Vermeer Pricing Valid Until: 5/4/2025
6& Quote Number: Q-34557
Terms
By signing below you understand the information presented and acknowledge order acceptance:
Vermeer:
Date:
Customer:
Date:
Prices and availability are subject to change without notice. All prices are exclusive of any and all duties, import fees, taxes or other similar charges including sales and
federal excise tax, if applicable. Prices may not be applicable in any transaction involving a trade or rental transaction. Unless noted, dealer freight and preparation to
be determined. All prices quoted herein are US Dollars. All quotations valid for thirty days from date of quotation. The pricing set forth herein is an estimate only
based on currently prevailing market conditions. The above may not include all possible specifications available with this model. For complete product specifications,
please contact your local, authorized Vermeer Dealer.
Quote Number:Q-34557 Page 2 of 2
Item Number: 6.g.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution Amending and Adopting FY2025 Interfund Transfers.
Prepared By:
Reviewed By:
Fiscal Impact:
Staff Recommendation:
Commission Recommendations
Attachments: Resolution
Nicole Davies, Finance Director
Geoff Fruin, City Manager
Adopted as part of the FY2025 Amended Budget
Approval
N/A
Executive Summary:
The Iowa Department of Management has administrative rules regarding the handling of
interfund transfers. All interfund transfers are required to be adopted by resolution by the City
Council. The proposed interfund transfers are also being adopted as part of the Fiscal Year
2025 Amended Budget.
Background / Analysis:
In April 2019, the Iowa Administrative Code incorporated regulations surrounding the
management of interfund transfers. In addition to being adopted as part of the budget, which
is subject to a public hearing, interfund transfers are required to be approved by the City
Council by resolution. Each transfer must include the fund sending the transfer, the fund
receiving the transfer, the amount of the transfer, and the reason for the transfer. These rules
took effect in May 2019.
Prepared by: Nicole Davies, Finance Director, 410 E. Washington St., Iowa City, IA 52240, (319)356-5085
Resolution No. 25-86
Resolution Amending and Adopting FY2025 Interfund Transfers
Now therefore, be it resolved by the City Council of the City of Iowa City, Iowa that the City of Iowa City, in Johnson County, Iowa, approves the following
transfer of monies between funds in accordance with the Administrative Code of the State of Iowa. The City Finance Director is hereby authorized to
initiate and record the listed inter -fund transfers up to the amounts set out below.
Transfer Out Transfer In Original Amended
Fund Fund Reason Amount Amount
General Fund Cable TV Equipment Reserve Equipment Reserve $10,000.00 $10,000.00
General Fund Wastewater Fund Low Income Discount Donations $2,500.00 $23,490.00
General Fund Water Fund Low Income Discount Donations $2,000.00 $23,990.00
General Fund Refuse Collection Fund Low Income Discount Donations $7,000.00 $45,240.00
General Fund Storm Water Fund Low Income Discount Donations $1,200.00 $11,080.00
General Fund Capital Projects CIP funding $1,387,800.00 $1,374,700.00
General Fund Airport Fund CIP funding $100,000.00 $100,000.00
General Fund MPOJC Fund Operating funding $95,600.00 $95,600.00
General Fund Affordable Housing Fund Operating Funding $1,030,000.00 $1,030,000.00
General Fund Library Replacement Reserve Equipment Reserve $62,400.00 $62,400.00
General Fund Debt Service Fund Aniston Village Loan Pmt $20,100.00 $20,100.00
General Fund Transit Fund Transit Levy Transfer $4,247,200.00 $4,247,200.00
General Fund TIF Fund Hilton Garden Inn Rebate Transfer $150,000.00 $150,000.00
General Fund Landfill Fund Loan Repayment $117,000.00 $117,000.00
Facility Reserve Capital Projects CIP funding $9,700,000.00 $16,650,000.00
Road Use Tax Fund Capital Projects CIP funding $3,200,000.00 $3,378,000.00
Road Use Tax Fund Landfill Fund Loan Repayment $78,000.00 $78,000.00
Road Use Tax Fund General Fund Forestry Cost Share $81,200.00 $81,200.00
Road Use Tax Fund MPOJC Fund Cost share $299,000.00 $299,000.00
Employee Benefits General Fund Employee benefits $13,527,100.00 $13,527,100.00
Employee Benefits Road Use Tax Fund Employee benefits $697,100.00 $697,100.00
Tax Increment Financing General Fund Loan Repayment $42,500.00 $42,500.00
Tax Increment Financing Debt Service Debt payments $1,542,300.00 $1,542,300.00
Parking Fund Landfill Fund Loan Repayment $294,800.00 $294,800.00
Parking Fund Parking Capital Reserve Reserve Transfer $1,500,000.00 $1,500,000.00
Parking Capital Reserve Capital Projects CIP funding $1,450,000.00 $1,235,050.00
Transit Fund Transit Bus Reserve Reserve Transfer $750,000.00 $750,000.00
Transit Fund Transit Capital Projects CIP funding $2,205,500,00 $6,745,000,00
Wastewater Fund Wastewater Debt Reserve Debt payments $3,872,500.00 $3,872,500.00
Wastewater Fund Wastewater Capital Reserve Reserve Transfer $1,500,000.00 $1,500,000.00
Wastewater Capital Reserve Wastewater Capital Projects CIP funding $1,360,000.00 $1,269,800.00
Water Fund Water Debt Reserve Debt payments $70,200.00 $70,200.00
Water Fund Water Capital Reserve Reserve Transfer $1,800,000.00 $2,812,590.00
Water Capital Reserve Water Capital Projects CIP funding $1,770,000.00 $1,800,000.00
Refuse Fund Capital Projects CIP funding $250,000.00 $200,000.00
Landfill Fund Landfill Reserves Closure/Replacement funding $1,025,000.00 $1,025,000.00
Landfill Fund Capital Projects CIP funding $500,000.00 $100,000.00
Airport Capital Reserve Capital Projects CIP funding $350,000.00 $84,750.00
Storm Water Fund Storm Water Capital Reserve Reserve Transfer $1,100,000.00 $1,100,000.00
Storm Water Capital Reserve Storm Water Capital Projects CIP funding $1,035,000.00 $1,095,000.00
Housing Authority Fund General Fund PILOT/NDS Director cost share $30,700.00 $30,700.00
Central Services Capital Projects CIP Funding $0.00 $200,000.00
Passed and approved this 15th day of April 2025
Mayor:
Approved by
Attest:
City Clerk City Attorne s Office — 04/09/2025
Resolution No. 25-86
Page No. 2
It was moved by Moe , and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Alter , that the
Item Number: 6.h.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution Adopting FY2026 Interfund Transfers.
Prepared By:
Reviewed By:
Fiscal Impact:
Staff Recommendation:
Commission Recommendations
Attachments: Resolution
Nicole Davies, Finance Director
Geoff Fruin, City Manager
Noted on attached schedule
Approval
N/A
Executive Summary:
The Iowa Department of Management has administrative rules regarding the handling of
interfund transfers. All interfund transfers are required to be adopted by resolution by the City
Council.
Background / Analysis:
In April 2019, the Iowa Administrative Code incorporated regulations surrounding the
management of interfund transfers. In addition to being adopted as part of the budget, which
is subject to a public hearing, interfund transfers are required to be approved by the City
Council by resolution. Each transfer must include the fund sending the transfer, the fund
receiving the transfer, the amount of the transfer, and the reason for the transfer. These rules
took effect in May 2019.
Prepared by: Nicole Davies, Finance Director, 410 E. Washington St., Iowa City, IA 52240, (319)356-5085
Resolution No. 25-87
Resolution Adopting FY2026 Interfund Transfers
Now therefore, be it resolved by the City Council of the City of Iowa City, Iowa that the City of Iowa City, in Johnson County, Iowa, approves the following
transfer of monies between funds in accordance with the Administrative Code of the State of Iowa. The City Finance Director is herby authorized to
initiate and record the listed inter -fund transfers up to the amounts set out below.
Transfer Out
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
Road Use Tax Fund
Road Use Tax Fund
Road Use Tax Fund
Road Use Tax Fund
Employee Benefits
Employee Benefits
Affordable Housing
Tax Increment Financing
Tax Increment Financing
Parking Fund
Parking Fund
Parking Capital Reserve
Transit Fund
Transit Fund
Wastewater Fund
Wastewater Fund
Wastewater Capital Reserve
Water Debt Reserve
Water Fund
Water Capital Reserve
Refuse Fund
Landfill Fund
Landfill Fund
Airport Capital Reserve
Storm Water Fund
Storm Water Capital Reserve
Housing Authority Fund
Equipment
Transfer In
Fund
Cable TV Equipment Reserve
Wastewater Fund
Water Fund
Refuse Collection Fund
Storm Water Fund
Capital Projects
Airport Fund
MPOJC Fund
Affordable Housing Fund
Library Replacement Reserve
Debt Service Fund
Transit Fund
Transit Fund
Landfill Fund
Capital Projects
Landfill Fund
General Fund
MPOJC Fund
General Fund
Road Use Tax Fund
General Fund
Debt Service
General Fund
Landfill Fund
Parking Capital Reserve
Capital Projects
Transit Bus Reserve
Capital Projects
Wastewater Debt Reserve
Wastewater Capital Reserve
Wastewater Capital Projects
Water Fund
Water Capital Reserve
Water Capital Projects
Capital Projects
Landfill Reserves
Capital Projects
Capital Projects
Storm Water Capital Reserve
Storm Water Capital Projects
General Fund
Capital Projects
Passed and approved this 15 th day of
Equipment Reserve
Low Income Discount Donations
Low Income Discount Donations
Low Income Discount Donations
Low Income Discount Donations
CIP funding
CIP funding
Operating funding
Operating Funding
Equipment Reserve
Aniston Village Loan Pmt
Transit Levy Transfer
Utility Franchise Tax Transfer
Loan Repayment
CIP funding
Loan Repayment
Forestry Cost Share
Cost share
Employee benefits
Employee benefits
Housing Rehab
Debt payments
Loan Repayment
Loan Repayment
Reserve Transfer
CIP funding
Reserve Transfer
CIP funding
Debt payments
Reserve Transfer
CIP funding
Debt payments
Reserve Transfer
CIP funding
CIP funding
Closure/Replacement funding
CIP funding
CIP funding
Reserve Transfer
CIP funding
PILOT
CIP Funding
2025
Mayor:
Approved by
City Clerk City Attom 's Office — 04/10/2025
Original
Amount
$10,000.00
$23,500.00
$24,000.00
$48,100.00
$11,100.00
$2,095,900.00
$100,000.00
$103,500.00
$1,000,000.00
$62,400.00
$20,100.00
$4,331,700.00
$1,000,000.00
$118,800.00
$4,200,000.00
$79,200.00
$85,600.00
$295,000.00
$12,963,300.00
$583,300.00
$100,000.00
$1,601,700.00
$42,500.00
$97,700.00
$1,500,000.00
$1,100,000.00
$750,000.00
$2,665,049,00
$3,841,600.00
$1,500,000.00
$2,250,000.00
$886,474.00
$2,500,000.00
$4,150,000.00
$250,000.00
$1,150,000.00
$550,000.00
$93,554.00
$1,100,000.00
$1,340,000.00
$30,700.00
$7,700,000.00
Resolution No. 25-87
Page No. 2
It was moved by Moe , and seconded by Alter that the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Item Number: 6.i.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution Directing the Advertisement for Sale of $14,535,000* (Dollar Amount Subject To
Change) General Obligation Bonds, Series 2025, And Approving Electronic Bidding
Procedures and Distribution of Preliminary Official Statement.
Prepared By: Jacklyn Fleagle, Assistant Finance Director
Reviewed By: Nicole Davies, Finance Director
Geoff Fruin, City Manager
Fiscal Impact: Approved as part of the FY2025 Revised Budget and
2025-2029 Capital Improvement Program
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Preliminary Official Statment
Resolution
Executive Summary:
This is a resolution to advertise for the sale, to approve the electronic bidding procedures,
and to approve the distribution of the preliminary official statement for the 2025 General
Obligation Bonds.
This resolution establishes the sale time and date and bidding procedures for the 2025
General Obligation Bonds. It also accepts and approves the Preliminary Official Statement or
sale document for the bonds.
Background / Analysis:
The City issues bonds every spring to fund the current year's capital improvement projects
listed in the Five -Year Capital Improvement Program. The City intends to take bids for
$14,535,000 in general obligation bonds on May 6 and then close on the bond sale on June
3.
The FY2025 Revised Budget and FY2026 Adopted Budget have been approved with the
necessary property tax levies needed for repayment of the 2025 General Obligation Bonds.
The City's long-term planning has incorporated the 2025 proposed bond issue and
repayment schedule.
City Council approval of the resolution directing the advertisement for sale, approving
electronic bidding procedures, and distribution of the preliminary official statement is the next
required action to facilitate the sale and issuance of the 2025 General Obligation Bonds.
New Issue Investment Rating:
Date of Sale: Tuesday, May 6, 2025 (Alternate Bid Methods) Moody's Investors Service ...
Between 10:30 and 11:00 A.M., C.D.T (Closed SpeerAuction) (Rating Requested)
Before 11:00 A.M., C.D.T (Sealed Bids)
Official Statement
Assuming compliance with certain covenants, in the opinion of Ahlers & Cooney, P.C., Bond Counsel, under present law and assuming continued compliance
with the requirements of the Internal Revenue Code of 1986, as amended (the "Code'), interest on the Bonds is excludable from gross income for federal income tax
purposes. Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals, however, such interest may
be taken into account for the purpose of computing the alternative minimum tax imposed on certain corporations. Interest on the Bonds is not exempt from present Iowa
income taxes. The Bonds will NOT be designated as "qualified tax-exempt obligations ". See "TAX MATTERS" herein for a more detailed discussion.
Dated Date of Delivery
$14,535,000*
CITY OF IOWA CITY
Johnson County, Iowa
General Obligation Bonds, Series 2025A
Book -Entry
Due Serially June 1, 2026 - 2035
The $14,535,000* General Obligation Bonds, Series 2025A (the `Bonds") are being issued by the City of Iowa City, Johnson
County, Iowa (the "City" or the "Issuer"). Interest is payable semiannually on June 1 and December 1 of each year, commencing
December 1, 2025. Interest is calculated based on a 360-day year of twelve 30-day months. The Bonds will be issued using a book -
entry system. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The
ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no
physical delivery of Bonds will be made to purchasers. The Bonds will mature on June 1 in the following years and amounts.
AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS
Principal
Due
Interest
Price or
CUSIP Principal
Due
Interest
Price or CUSIP
Amount*
June 1
Rate
Yield
Number(1) Amount*
June 1
Rate
Yield Number(1)
$2,200,000.........
2026
%
%
$1,370,000...........
2031
%
%
1,375,000.........
2027
%
%
1,370,000...........
2032
%
%
1,370,000.........
2028
%
%
1,370,000...........
2033
%
%
1,370,000.........
2029
%
%
1,370,000...........
2034
%
%
1,370,000 .........
2030
%
%
1, 370,000...........
2035
%
%
Any consecutive maturities maybe aggregated into term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above
OPTIONAL REDEMPTION
Bonds due June 1, 2026 - 2032, inclusive, are not subject to optional redemption. Bonds due June 1, 2033 - 2035, inclusive,
are callable in whole or in part on any date on or after June 1, 2032, at a price of par and accrued interest. If less than all the Bonds are
called, they shall be redeemed in such principal amounts and from such maturities as determined by the City and within any maturity
by lot. See "OPTIONAL REDEMPTION" herein.
PURPOSE, LEGALITY AND SECURITY
The proceeds of the Bonds are expected to be used to: (i) finance the costs of various essential and general corporate purpose
capital improvements, and (ii) pay certain costs of issuance related to the Bonds. See "THE PROJECT" herein.
In the opinion of Bond Counsel, Ahlers & Cooney, P.C., Des Moines, Iowa, the Bonds will constitute valid and legally binding
obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable, real property within the
corporate limits of the City without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium,
reorganization and other similar laws relating to the enforcement of creditors' rights generally and except that enforcement by equitable
and similar remedies, such as mandamus, is subject to the exercise of judicial discretion.
This Official Statement is dated April _, 2025, and has been prepared under the authority of the City. An electronic copy of
this Official Statement is available from the www.speerfinancial.com web site under "Official Statement Sales Calendar". Additional
copies may be obtained from Nicole Davies, Finance Director, City of Iowa City, 410 E. Washington Street, Iowa City, Iowa, 52240,
or from the Registered Municipal Advisors to the City.
ffSpeer Financial, Inc.
EPENDENT MUNICIPAL ADVISORS • ESTABLISHED 1954
*Subject to principal adjustment in accordance with the Official Terms of Offering.
(1) CUSY numbers appearing in this Official Statement have been provided by CUSIP Global Services ("CGS') is managed on behaf of the American Bankers Association by FactSetResearch Systems Inc. The City is not
responsible far the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as setforth on the cover of this Qjiicial Statement.
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as the
same may be supplemented or corrected by the City from time to time (collectively, the "Official Statement"), may be
treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date hereof
(or the date of any such supplement or correction) by the City.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,
principal amounts and interest rates of the Bonds, together with any other information required by law or deemed appropriate
by the City, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in
Rule 15c2-12. Any such addendum or addenda shall, on and after the date thereof, be fully incorporated herein and made
a part hereof by reference. Alternatively, such final terms of the Bonds and other information may be included in a separate
document entitled "Final Official Statement" rather than through supplementing the Official Statement by an addendum or
addenda.
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make
any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement
and, if given or made, such other information or representations must not be relied upon as having been authorized by the
City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from
sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. THE
INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR
THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL
CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE
THE RESPECTIVE DATES THEREOF.
No representation is made regarding whether the Bonds constitute legal investments under the laws of any state for
banks, savings banks, savings and loan associations, life insurance companies, and other institutions organized in such state,
or fiduciaries subject to the laws of such state.
THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
BY REASON OF THE PROVISIONS OF SECTION 3(a)(2) OF THE SECURITIES ACT OF 1933, AS AMENDED. THE
REGISTRATION OR QUALIFICATIONS OF THE BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS
OF SECURITIES LAWS OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED
AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES SHALL NOT BE
REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES
HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS
OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do
not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference
to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein.
Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will
be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any
securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful.
References to website addresses presented herein are for informational purposes only and may be in the form of a
hyperlink solely for the reader's convenience. Unless specified otherwise, such websites and the information or links
contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is
defined in, Securities and Exchange Commission Rule 15c2-12.
TABLE OF CONTENTS
Page
BONDISSUE SUMMARY.................................................................................................................................................... I
SECURITY AND SOURCE OF PAYMENT........................................................................................................................
2
CERTAIN BONDHOLDERS' RISKS...................................................................................................................................
3
SecondaryMarket...............................................................................................................................................................3
RatingsLoss........................................................................................................................................................................3
RedemptionPrior to Maturity.............................................................................................................................................
3
Forward -Looking Statements..............................................................................................................................................4
TaxMatters and Loss of Tax Exemption............................................................................................................................4
DTC-Beneficial Owners.....................................................................................................................................................4
Pension and Other Post -Employment Benefits ("OPEB") Information..............................................................................4
ContinuingDisclosure........................................................................................................................................................5
Cybersecurity......................................................................................................................................................................
6
Suitabilityof Investment.....................................................................................................................................................
6
Bankruptcyand Insolvency.................................................................................................................................................6
Matters Relating to Enforceability of Agreements.............................................................................................................
6
Legislation...........................................................................................................................................................................
7
TaxLevy Procedures..........................................................................................................................................................
7
Lossof Tax Base.................................................................................................................................................................
8
Federal Funds Orders and State Funds Legislation.............................................................................................................
8
OtherFactors.......................................................................................................................................................................
8
THECITY..............................................................................................................................................................................
8
CityOrganization and Services...........................................................................................................................................8
CommunityLife..................................................................................................................................................................9
Education............................................................................................................................................................................9
Transportation.....................................................................................................................................................................
9
SOCIOECONOMICINFORMATION..................................................................................................................................9
Population...........................................................................................................................................................................
9
Employment......................................................................................................................................................................
10
Housing.............................................................................................................................................................................
I I
Incomeand Benefits.........................................................................................................................................................12
RetailSales........................................................................................................................................................................13
THEPROJECT.....................................................................................................................................................................13
SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT...............................................13
DEBTINFORMATION.......................................................................................................................................................14
DebtLimit.........................................................................................................................................................................
14
DirectDebt........................................................................................................................................................................14
PROPERTY ASSESSMENT AND TAX INFORMATION................................................................................................16
PropertyTax Assessment..................................................................................................................................................16
Percentages for Taxable Valuation After Rollbacks(])....................................................................................................16
BuildingPermits...............................................................................................................................................................
17
PropertyTax Collection....................................................................................................................................................17
TaxRates..........................................................................................................................................................................19
TaxLevy Procedures........................................................................................................................................................19
UtilityProperty Tax Replacement....................................................................................................................................
20
TaxIncrement Financing..................................................................................................................................................
20
PropertyTax Legislation...................................................................................................................................................
20
FINANCIAL INFORMATION............................................................................................................................................
21
FinancialReports..............................................................................................................................................................
21
No Consent or Updated Information Requested of the Auditor........................................................................................
21
Summary Financial Information.......................................................................................................................................
22
REGISTRATION, TRANSFER AND EXCHANGE...........................................................................................................25
(i)
TAXMATTERS...................................................................................................................................................................26
TaxExemption..................................................................................................................................................................26
Discountand Premium Bonds...........................................................................................................................................27
OtherTax Advice..............................................................................................................................................................
27
Audits................................................................................................................................................................................
27
Reportingand Withholding...............................................................................................................................................27
TaxLegislation.................................................................................................................................................................27
Enforcement......................................................................................................................................................................
28
TheOpinion......................................................................................................................................................................
28
BondCounsel Review.......................................................................................................................................................28
CONTINUINGDISCLOSURE............................................................................................................................................29
OPTIONALREDEMPTION................................................................................................................................................29
LITIGATION........................................................................................................................................................................
29
LEGALMATTERS..............................................................................................................................................................
30
OFFICIAL STATEMENT AUTHORIZATION..................................................................................................................
30
INVESTMENTRATING.....................................................................................................................................................30
UNDERWRITING...............................................................................................................................................................
31
MUNICIPALADVISOR......................................................................................................................................................
31
MISCELLANEOUS.............................................................................................................................................................
32
APPENDIX A -FISCAL YEAR 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT
APPENDIX B - DESCRIBING BOOK -ENTRY -ONLY ISSUANCE
APPENDIX C - FORM OF BOND COUNSEL OPINION
APPENDIX D - FORM OF CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORM
OFFICIAL TERMS OF OFFERING
Exhibit A — Example Issue Price Certificate
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
BOND ISSUE SUMMARY
This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Terms of Offering
and the Official Bid Form, which are provided for the convenience of potential investors and should be reviewed in their entirety
by potential investors.
Issuer: City of Iowa City, Johnson County, Iowa.
Issue: $14,535,000* General Obligation Bonds, Series 2025A.
Dated Date: Date of delivery (expected to be on or about June 3, 2025).
Interest Due: Each June I and December 1, commencing December 1, 2025.
Principal Due: Serially each June 1, commencing June 1, 2026 through 2035, as detailed on the cover page
of this Official Statement.
Optional Redemption: Bonds maturing on or after June 1, 2033, are callable at the option of the City on any date
on or after June 1, 2032, at a price of par plus accrued interest. See "OPTIONAL
REDEMPTION" herein.
Authorization: The Bonds are being issued pursuant to authority established in Code of Iowa, 2025 as
amended, Chapter 384 (the "Act"), and all laws amendatory thereof and supplementary
thereto, and in conformity with a resolution (the "Resolution" or the "Bond Resolution")
of the City expected to be adopted on May 20, 2025.
Security: The Bonds are valid and legally binding obligations of the City payable both as to principal
and interest from ad valorem taxes levied against all taxable real property within the
corporate limits of the City without limitation as to rate or amount, all except as limited by
bankruptcy, insolvency, moratorium, reorganization and other similar laws relating to the
enforcement of creditors' rights generally and except that enforcement by equitable and
similar remedies, such as mandamus, is subject to the exercise of judicial discretion.
Investment Rating: An investment rating for the Bonds has been requested from Moody's Investors Service,
Inc., New York, New York. See "INVESTMENT RATING" herein.
Purpose: The proceeds of the Bonds will be used to: (i) finance the costs of various essential and
general corporate purpose capital improvements, and (n) to pay the costs of issuing the
Bonds. See "THE PROJECT" herein.
Tax Matters: Ahlers & Cooney, P.C., Des Moines, Iowa, will provide an opinion as to the tax exemption
of the Bonds as discussed under "TAX MATTERS" in this Official Statement. Interest
on the Bonds is not exempt from present State of Iowa income taxes. See APPENDIX C
for a draft form of legal opinion for the Bonds.
NOT Bank Qualified: The Bonds are not "qualified tax-exempt obligations" under Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
Bond Registrar/Paying Agent: U.S. Bank Trust Company, National Association, Saint Paul, Minnesota (the "Registrar").
Delivery: The Bonds are expected to be delivered on or about June 3, 2025.
Book -Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository
Trust Company ("DTC"), New York, New York. DTC will act as securities depository of
the Bonds. See APPENDIX B herein.
Denomination: $5,000 or integral multiples thereof.
Municipal Advisor: Speer Financial, Inc., Waterloo, Iowa and Chicago, Illinois.
*Subject to change.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Megan Alter
Josh Moe
Geoff Fruin
City Manager
Nicole Davies
Finance Director
CITY OF IOWA CITY
Johnson County, Iowa
Bruce Teague
Mayor
Council Members
Laura Bergus
Mazahir Salih
Officials
Chris O'Brien
Deputy City Manager
Jacklyn Fleagle
Assistant Finance Director
SECURITY AND SOURCE OF PAYMENT
Shawn Harmsen
Oliver Weilem
Kellie Grace
City Clerk
Eric Goers, Esq.
City Attorney
Pursuant to the Resolution and the Act, the Bonds and the interest thereon are general obligations of the City, and
all taxable real property within the corporate boundaries of the City is subject to the levy of taxes to pay the principal of and
interest on the Bonds without constitutional or statutory limitation as to rate or amount. For a description of certain
constitutional limits on the issuance of general obligation debt by the City, see "Debt Limitation" herein.
Section 76.2 of the Code of Iowa, 2025, as amended (the "Iowa Code"), provides that when an Iowa political
subdivision issues general obligation bonds, the governing authority of such political subdivision shall, by resolution
adopted before issuing the bonds, provide for the assessment of an annual levy upon all the taxable real property in the
political subdivision sufficient to pay the interest and principal of the bonds. A certified copy of this resolution shall be
filed with the County Auditor in which the Issuer is located, giving rise to a duty of the County Auditor to annually enter
this levy for collection from the taxable real property within the boundaries of the Issuer, until funds are realized to pay the
bonds in full.
For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and
interest on the Bonds as the same become due, the Resolution provides for the levy of a tax sufficient for that purpose on
all the taxable real property in the Issuer in each of the years while the Bonds are outstanding. The Issuer shall file a certified
copy of the Resolution with the County Auditor, pursuant to which the County Auditor is instructed to enter for collection
and assess the tax authorized. When annually entering such taxes for collection, the County Auditor shall include the same
as a part of the tax levy for Debt Service Fund purposes of the Issuer and when collected, the proceeds of the taxes shall be
converted into the Debt Service Fund of the Issuer and set aside therein as a special account to be used solely and only for
the payment of the principal of and interest on the Bonds and for no other purpose whatsoever.
2
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Nothing in the Resolution prohibits or limits the ability of the City to use legally available moneys other than the
proceeds of the general ad valorem property taxes levied as described in the preceding paragraph to pay all or any portion
of the principal of or interest on the Bonds. If and to the extent such other legally available moneys are used to pay the
principal of or interest on the Bonds, the City may, but shall not be required to, (a) reduce the amount of taxes levied for
such purpose, as described in the preceding paragraph; or (b) use proceeds of taxes levied, as described in the preceding
paragraph, to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount
withdrawn from such fund or account to pay the principal of or interest on the Bonds.
CERTAIN BONDHOLDERS' RISKS
An investment in the Bonds is subject to certain risks. No person should purchase the Bonds unless such person
understands the risks described below and is willing to bear those risks. There may be other risks not listed below which
may adversely affect the value of the Bonds. In order to identify risk factors and make an informed investment decision,
potential investors should be thoroughly familiar with this entire Official Statement (including the Appendices hereto) in
order to make a judgement as to whether the Bonds are an appropriate investment.
Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that
such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse
history of economic prospects connected with a particular issue, secondary marketing practices in connection with a
particular bond or note issue are suspended or terminated. Additionally, prices of bond or note issues for which a market is
being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original
purchase price of the Bonds.
EACH PROSPECTIVE PURCHASER IS RESPONSIBLE FOR ASSESSING THE MERITS AND RISKS OF AN
INVESTMENT IN THE BONDS AND MUST BE ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT.
THE SECONDARY MARKET FOR THE BONDS, IF ANY, COULD BE LIMITED.
Ratings Loss
Moody's Investors Service, Inc. ("Moody's") has assigned a rating of " " to the Bonds. Generally, a rating
agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its
own. There is no assurance that the rating will continue for any given period of time, or that such rating will not be revised,
suspended or withdrawn, if, in the judgment of Moody's, circumstances so warrant. A revision, suspension or withdrawal
of a rating may have an adverse effect on the market price of the Bonds.
Various factors, including additional regulation of rating agencies could materially alter the methodology, rating
levels, and types of ratings available, for example, and these changes, if ever, could materially affect the market value of
the Bonds.
Redemption Prior to Maturity
In considering whether to make an investment in the Bonds, it should be noted the Bonds are subject to optional
redemption, as outlined herein, without Bondholder discretion or consent. See "OPTIONAL REDEMPTION" herein.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Forward -Looking Statements
This Official Statement contains statements relating to future results that are "forward -looking statements" as
defined in the Private Securities Litigation Reform Act of 1995. When used in this Official Statement, the words
"anticipated," "plan," "expect," "projected," "estimate," "budget," "pro -forma," "forecast," "intend," "expect" and similar
expressions identify forward -looking statements. Any forward -looking statement is subject to uncertainty. Accordingly,
such statements are subject to risks that could cause actual results to differ, possibly materially, from those contemplated in
such forward -looking statements. Inevitably, some assumptions used to develop forward -looking statements will not be
realized or unanticipated events and circumstances may occur. Therefore, investors should be aware that there are likely to
be differences between forward -looking statements and the actual results. These differences could be material and could
impact the availability of funds of the City to pay debt service when due on the Bonds.
Tax Matters and Loss of Tax Exemption
As discussed under the heading "TAX MATTERS" herein, the interest on the Bonds could become includable in
gross income for purposes of federal income taxation retroactive to the date of delivery of the Bonds, as a result of acts or
omissions of the Issuer in violation of its covenants in the Resolution. Should such an event of taxability occur, the Bonds
would not be subject to a special prepayment and would remain outstanding until maturity or until prepaid under the
prepayment provisions contained in the Bonds, and there is no provision for an adjustment of the interest rate on the Bonds.
It is possible that legislation will be proposed or introduced that could result in changes in the way that tax exemption
is calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should consult
with their own tax advisors regarding any pending or proposed federal income tax legislation. The likelihood of any pending
or future legislation being enacted or whether the currently proposed terms of any pending legislation will be altered or
removed during the legislative process cannot be reliably predicted.
DTC-Beneficial Owners
Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of principal of and interest
on the Bonds since such distributions will be forwarded by the Paying Agent to DTC and DTC will credit such distributions
to the accounts of the Participants which will thereafter credit them to the accounts of the Beneficial Owner either directly
or indirectly through Indirect Participants. Neither the City nor the Paying Agent will have any responsibility or obligation
to assure that any such notice or payment is forwarded by DTC to any Participants or by any Participant to any Beneficial
Owner.
In addition, since transactions in the Bonds can be effected only through DTC Participants, Indirect Participants
and certain banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the
DTC system, or otherwise to take actions in respect of such Bonds, may be limited due to lack of a physical certificate.
Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the
Participants. See APPENDIX B — Describing Book -Entry Only Issuance.
Pension and Other Post -Employment Benefits ("OPEB") Information
The City participates in two public pension systems, Iowa Public Employee's Retirement System (IPERS) and
Municipal Fire and Police Retirement System of Iowa (N: PRSI).
In fiscal year 2024, pursuant to the IPERS' required rate, the City's Regular employees (members) contributed 6.29%
of covered payroll and the City contributed 9.44% of covered payroll, for a total rate of 15.73%. The City's contributions to
IPERS for the year ended June 30, 2024 were $3,497,329. The City's share of the contributions, payable from the applicable
funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount.
The City has always made its full required contributions to IPERS.
4
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
At June 30, 2024, the City reported a liability of $19,005,162 for its proportionate share of the IPERS net pension
liability. The net pension liability was measured as of June 30, 2023 and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The discount rate used to measure the total pension
liability was 7%. The City's proportion of the net pension liability was based on the City's share of contributions to the
pension plan relative to the contributions of all IPERS participating employers. While the City's contributions to IPERS
are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its
contribution requirement in the future, which may have the effect of negatively impacting the finances of the City.
In fiscal year 2024, pursuant to the MFPRSI's required rate, the City's employees (members) contributed 9.40% of
earnable compensation and the City contributed 22.98% of eamable compensation, for a total rate of 32.38%. The City's
contribution to MFPRSI for year ended June 30, 2024 was $2,958,187. The City's share of the contributions, payable from
the applicable funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to
rate or amount. The City has always made its full required contributions to MFPRSI.
At June 30, 2024, the City reported a liability of $22,064,192 for its proportionate share of the MFPRSI net pension
liability. The net pension liability was measured as of June 30, 2023 and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The discount rate used to measure the total pension
liability was 7.5%. The City's proportion of the net pension liability was based on the City's share of contributions to the
pension plan relative to the contributions of all MFPRSI participating employers. While the City's contributions to MFPRSI
are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its
contribution requirement in the future, which may have the effect of negatively impacting the finances of the City.
The City operates a single -employer self -funded medical and dental plan for all employees, which is offered to
current and retired employees and their dependents. Group insurance benefits are established under Iowa Code Chapter
509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
The following table shows the City's total OPEB liability:
Total OPEB Liability Beginning of Year ................................................. $8,730,093
Changes for the year
ServiceCost.......................................................................... 636,191
Interest.................................................................................. 378,025
Difference Between Expected and Actual Experience ........... (418,135)
Changes in Assumptions....................................................... 627,644
Benefit Payments.................................................................. (430,651)
NetChanges......................................................................................... 793,074
Total OPEB Liability End of Year........................................................... 9.523.167
See APPENDIX A — Notes (7) and (8) herein for further discussion of the City's employee retirement benefit
obligations.
Continuing Disclosure
A failure by the City to comply with continuing disclosure obligations (see "CONTINUING DISCLOSURE"
herein) will not constitute an event of default on the Bonds. Material failures must be disclosed in accordance with Rule
15c2-12 (the "Rule") adopted by the Securities and Exchange Commission (the "Commission") under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and may adversely affect the transferability and liquidity of the
Bonds and their market price.
The City will covenant in a Continuing Disclosure Certificate for the benefit of the Owners and Beneficial Owners
of the Bonds to provide annually certain financial information and operating data relating to the City (the "Annual Report"),
and to provide notices of the occurrence of certain enumerated events. See "APPENDIX D — FORM OF CONTINUING
DISCLOSURE CERTIFICATE." The specific nature of the information to be contained in the Annual Report or the
notices of events, and the manner in which such materials are to be filed, are summarized in "APPENDIX D — FORM OF
CONTINUING DISCLOSURE CERTIFICATE." These covenants have been made in order to assist the Underwriter
in complying with the Rule.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Cybersecurity
The City, like many other public and private entities, relies on a large and complex technology environment to
conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to, hacking, viruses,
malware and other attacks on computer or other sensitive digital systems and networks. There can be no assurances that any
security and operational control measures implemented by the City will be completely successful to guard against and
prevent cyber threats and attacks. Failure to properly maintain functionality, control, security, and integrity of the City's
information systems could impact business operations and/or digital networks and systems and the costs of remedying any
such damage could be significant. Along with significant liability claims or regulatory penalties, any security breach could
have a material adverse impact on the City's operations and financial condition. The City cannot predict whether its cyber
liability policy will be sufficient in the event of a cyberattack. However, the Bonds are secured by an unlimited ad valorem
property tax as described herein. See "SECURITY AND SOURCE OF PAYMENT" herein.
Suitability of Investment
The interest rate borne by the Bonds is intended to compensate the investor for assuming the risk of investing in
the Bonds. Each prospective investor should carefully examine this Official Statement and its own financial condition to
make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an
appropriate investment for such investor.
Bankruptcy and Insolvency
The rights and remedies provided in the Resolution may be limited by and are subject to the provisions of federal
bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditors' rights, to the exercise of
judicial discretion in appropriate cases and to limitations in legal remedies against exercise of judicial discretion in
appropriate cases and to limitations on legal remedies against municipal corporations in the State. The various opinions of
counsel to be delivered with respect to the Bonds, and the Resolution, including the opinion of Bond Counsel, will be
similarly qualified. If the City were to file a petition under Chapter Nine of the Federal Bankruptcy Code, the owners of
the Bonds could be prohibited from taking any steps to enforce their rights under the Resolution. In the event the City fails
to comply with its covenants under the Resolution or fails to make payments on the Bonds, there can be no assurance of the
availability of remedies adequate to protect the interests of the holders of the Bonds.
Under sections 76.16 and 76.16A of the Iowa Code, as amended, a city, county, or other political subdivision may
become a debtor under Chapter Nine of the Federal Bankruptcy Code, if it is rendered insolvent, as defined in 11 U.S.C.
§ 101(32)(c), as a result of a debt involuntarily incurred. As used therein, "debt" means an obligation to pay money, other
than pursuant to a valid and binding collective bargaining agreement or previously authorized bond issue, as to which the
governing body of the city, county, or other political subdivision has made a specific finding set forth in a duly adopted
resolution of each of the following: (1) that all or a portion of such obligation will not be paid from available insurance
proceeds and must be paid from an increase in general tax levy; (2) that such increase in the general tax levy will result in
a severe, adverse impact on the ability of the city, county, or political subdivision to exercise the powers granted to it under
applicable law, including without limitation providing necessary services and promoting economic development; (3) that as
a result of such obligation, the city, county, or other political subdivision is unable to pay its debts as they become due; and
(4) that the debt is not an obligation to pay money to a city, county, entity organized pursuant to Chapter 28E of the Iowa
Code, or other political subdivision.
Matters Relating to Enforceability of Agreements
There is no bond trustee or similar person to monitor or enforce the provisions of the Resolution. The owners of
the Bonds should, therefore, be prepared to enforce such provisions themselves if the need to do so arises. In the event of a
default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the
principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the
nature of mandamus requiring the City and certain other public officials to perform the terms of the Resolution) may have
to be enforced from year to year.
Cel
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Holders of the Bonds shall have and possess all the rights of action and remedies afforded by the common law, the
Constitution and statutes of the State of Iowa and of the United States of America for the enforcement of payment of the
Bonds, including, but not limited to, the right to a proceeding in law or in equity by suit, action or mandamus to enforce and
compel performance of the duties required by Iowa law and the Resolution.
The practical realization of any rights upon any default will depend upon the exercise of various remedies specified
in the Resolution. The remedies available to the owners of the Bonds upon an event of default under the Resolution, in
certain respects, may require judicial action, which is often subject to discretion and delay. Under existing law, including
specifically the Federal Bankruptcy Code, certain of the remedies specified in the Resolution may not be readily available
or may be limited. A court may decide not to order the specific performance of the covenants contained in these documents.
The legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceability of
the various legal instruments by limitations imposed by general principles of equity and public policy and by bankruptcy,
reorganization, insolvency or other similar laws affecting the rights of creditors generally.
No representation is made, and no assurance is given, that the enforcement of any remedies with respect to such
assets will result in sufficient funds to pay all amounts due under the Resolution, including principal of and interest on the
Bonds.
Legislation
From time to time, there are proposals pending in Congress and in the Iowa General Assembly that could, if enacted,
alter or amend one or more of the matters described herein in certain respects or would adversely affect the market value of
the Bonds, or otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the
Bonds. Further such proposals may impact the marketability or market value of the Bonds simply by being proposed. It
cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be
enacted and there can be no assurance that such proposals will not apply to the Bonds. In addition regulatory actions are
from time to time announced or proposed, and litigation threatened or commenced, which if implemented or concluded in
a particular manner, could adversely affect the market value, marketability or tax status of the Bonds. It cannot be predicted
whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or
whether the Bonds would be impacted thereby.
Changes in Property Taxation From time to time the Iowa General Assembly has altered the method of property
taxation and could do so again. Such alterations could adversely affect the City's financial condition. Historically, changes
to property tax calculations and impositions are imposed on a prospective basis. However, there is no assurance future changes
to property taxation by the Iowa General Assembly will not be applied retroactively. See "Property Tax Legislation" herein
for a discussion on recent changes to the property tax process. It is impossible to predict the outcome of future property
taxation changes by the Iowa General Assembly or resulting impacts on the City's financial condition. However, the Bonds
are secured by an unlimited ad valorem property tax as described more fully in the "SECURITY AND SOURCE OF
PAYMENT" herein.
Tax Levy Procedures
The Bonds are general obligations of the City, payable from and secured by a continuing ad valorem tax levied
against all of the taxable real property within the corporate limits of the City. See "PROPERTY ASSESSMENT AND
TAX INFORMATION" herein for more details. As part of the budgetary process each fiscal year, the City will have an
obligation to request a debt service levy to be applied against all of the taxable real property within the corporate limits of
the City. A failure on the part of the City to make a timely levy request or a levy request by the City that is inaccurate or is
insufficient to make full payments of the debt service of the Bonds for a particular fiscal year may cause Bondholders to
experience delay in the receipt of distributions of principal of and/or interest on the Bonds. In the event of a default in the
payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the
Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus
requiring the City and certain other public officials to perform the terms of the Resolution) may have to be enforced from
year to year.
7
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Loss of Tax Base
Economic and other factors beyond the City's control, such as economic recession, deflation of property values, or
financial difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable
property caused by, among other eventualities, earthquake, flood, fire or other natural disaster, could cause a reduction in
the assessed value within the corporate boundaries of the City. In addition, the State of Iowa has been susceptible to tornados,
flooding and other extreme weather wherein winds and flooding have from time to time caused significant damage, which
if such events were to occur, may have an adverse impact on the City's financial position.
Federal Funds Orders and State Funds Legislation
Various federal executive orders, and Iowa Code Chapter 27A (collectively "ICE Enforcement Initiatives"), impose
requirements intended to ensure compliance with the federal immigration detainment processes. The ICE Enforcement
Initiatives impose various penalties for non-compliance, including the loss of state and/or federal funding under certain
circumstances. The loss of state and/or federal funds in any significant amount could negatively impact the City's overall
financial position and may affect its rating and could slow down completion of certain of the Projects. However, the Bonds
are secured by an unlimited ad valorem property tax and are not secured by state or federal funds. See "SECURITY AND
SOURCE OF PAYMENT" herein.
Other Factors
An investment in the Bonds involves an element of risk. The foregoing is intended only as a summary of certain
risk factors attendant to an investment in the Bonds. In order for potential investors to identify risk factors and make an
informed investment decision, potential investors should become thoroughly familiar with this entire Official Statement and
the Appendices hereto.
THE CITY
The City is located in East Central Iowa and was incorporated in 1853 under the laws of the State of Iowa (the
"State") and operates under the Council/Manager form of government. The 2020 Census reported population at 74,828. The
City is the largest City in Johnson County (the "County") and serves as the County seat.
City Organization and Services
The City is governed by a seven member Council and each member serves a four-year term. Elections are held
every two years, allowing for continuation in office of at least three members in each biennial election. The Council
members are elected at large, but three members are nominated from specific districts and the remaining four members are
nominated at large. The Mayor is elected by the Council from its own members for a two-year term. The City Manager,
City Attorney and City Clerk are appointed by the City Council. The City Manager is the chief administrative officer for
the City.
Currently the City employs approximately 588 full-time, 63 permanent part-time and 261 temporary employees,
including a police force of 81 sworn personnel and a fire department of 66 fire fighters. The City considers its employee
relations to be good. The City currently maintains labor agreements with the American Federation of State, County, and
Municipal Employees ("AFSCME") which contract expires June 30, 2026; with Police ("PLRO") which contract expires
June 30, 2030; and Fire fighters ("IAFF") which contract expires June 30, 2030.
The City provides a broad range of services to its citizens including general government, public safety, streets,
parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment,
wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations), and a
housing authority.
N.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Community Life
The City was the first North American City to be awarded the City of Literature in North America by UNESCO in
2008, which has a goal of fostering cultural diversity. The City hosts a variety of cultural events, such as the Iowa Writers'
Workshop, whose graduates include John Irving, Flannery O'Connor, T.C. Boyle; the International Writing Program; the
Non -Fiction Writing Program; the Iowa Playwrights' Workshop; and the Iowa Summer Writing Festival.
Education
Public education to the City is provided by the Iowa City Community School District (the "District"), with certified
enrollment of 14,551 for Fiscal Year 2024-25. There are approximately 2,000 full and part-time employees of the District.
The District owns and operates 19 pre-school sites, 21 elementary schools, three junior high schools, three comprehensive
high schools, one alternative high school and a Transition Services Center (a program for special education students ages
18-21). Education is also provided through the Clear Creek — Amana Community School District, with certified enrollment
of 3,123 for Fiscal Year 2024-25. Four year college programs and vocational training are available throughout the area
including the University of Iowa and Kirkwood Community College.
Transportation
The City is approximately 115 miles east of the City of Des Moines, 20 miles southeast of the City of Cedar Rapids
and 55 miles northwest of the City of Davenport. The Eastern Iowa Airport is located 20 miles from downtown Iowa City
and is served by a number of national and regional air carriers. A general aviation airport, Iowa City Municipal Airport is
located on the south side of the City. The Iowa Interstate Railway, and Cedar Rapids and Iowa City Railway provide the
City's rail service. Bus transportation is provided by Iowa City Transit, Coralville Transit, and the University of Iowa.
There is also a system of paved bicycle paths in the City along the Iowa River and some main roads in the City have paved
bicycle shoulders.
SOCIOECONOMIC INFORMATION
The following demographic information is for the City. Additional comparisons are made with Johnson County
(the "County") and the State of Iowa (the "State").
Population
The following table reflects population trends for the City, the County and the State.
Population Comparison(])
The
Percent
The
Percent
The
Percent
Year
City
Change
County
Change
State
Change
1970.....................
46,850
n/a
72,127
n/a
2,824,376
n/a
1980.....................
50,508
7.81%
81,717
13.30%
2,913,808
3.17%
1990.....................
59,735
18.27%
96,119
17.62%
2,776,755
(4.70%)
2000.....................
62,220
4.16%
111,006
15.49%
2,926,324
5.39%
2010.....................
67,862
9.07%
130,882
17.91%
3,046,355
4.10%
2020.....................
74,828
10.26%
152,854
16.79%
3,190,369
4.73%
Note: (1) Source: U.S. Bureau of the Census
M
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Employment
Following are lists of large employers located in the City.
Major City Employers(])
Approximate
Name
Product/Service
Employment
University of Iowa Hospitals & Clinics ........................................
Health Services................................................................................
15,500
Universityof Iowa......................................................................
Higher Education..............................................................................
10,300
Iowa City Community School District .........................................
Education.........................................................................................
2,000
Veterans Administration Medical Center ....................................
Health Services................................................................................
2,000
Procter and Gamble..................................................................
Health and Beauty Products.............................................................
1,300
Cityof Iowa City........................................................................
Government......................................................................................
990
ACT, Inc....................................................................................
Education Programs.........................................................................
985
NCS Pearson............................................................................
Educational Testing Services............................................................
800
Goodwillof the Heartland..........................................................
Nonprofit...........................................................................................
640
SystemsUnlimited.....................................................................
Social Services.................................................................................
500
Note: (1) Source: the City
The following tables show employment by industry and by occupation for the City, the County and the State as
reported by the U.S. Census Bureau 2019 - 2023 American Community Survey 5-year estimated values.
Employment By Industry(])
Classification
Agriculture, forestry, fishing and hunting, and mining ........................
Construction.....................................................................................
Manufacturing...................................................................................
Wholesaletrade...............................................................................
Retailtrade.......................................................................................
Transportation and warehousing, and utilities ...................................
Information.......................................................................................
Finance and insurance, and real estate and rental and leasing..........
Professional, scientific, and management, and administrative and
waste management services...........................................................
Educational services, and health care and social assistance .............
Arts, entertainment, and recreation, and accommodation and
foodservices...................................................................................
Other services, except public administration .....................................
Public administration........................................................................
Total................................................................................................
The City
The County
The State
Number
Percent
Number
Percent
Number
Percent
.... 486
1.1%
1,277
1.5%
60,470
3.7%
.... 1,130
2.6%
3,034
3.5%
112,119
6.9%
.... 2,402
5.6%
7,026
8.2%
240,105
14.7%
.... 514
1.2%
1,336
1.6%
42,516
2.6%
.... 5,483
12.7%
9,752
11.4%
186,225
11.4%
.... 1,594
3.7%
3,192
3.7%
83,731
5.1%
.... 772
1.8%
1,357
1.6%
22,861
1.4%
.... 1,652
3.8%
4,844
5.6%
124,791
7.7%
.... 2,999
7.0%
6,715
7.8%
125,965
7.7%
.... 19,188
44.6%
34,912
40.7%
394,835
24.2%
.... 4,895
11.4%
7,285
8.5%
112,729
6.9%
.... 1,058
2.5%
2,891
3.4%
69,718
4.3%
.... 875
2.0%
2,243
2.6%
53,576
3.3%
.... 43,048
100.0%
85,864
100.0%
1,629,641
100.0%
Note: (1) Source: U. S. Bureau of the Census, American Community Survey 5-Year Estimates from 2019 - 2023.
Employment By Occupation(])
The City
The County
The State
Classification
Number
Percent
Number
Percent
Number
Percent
Management, business, science, and arts occupations .........................
21,030
48.9%
43,348
5-0 59/.
636,075
39.0%
Service occupations..............................................................................
8,395
19.5%
13,991
16.3%
246,710
15.1%
Sales and office occupations.................................................................
7,703
17.9%
15,272
17.8%
313,730
19.3%
Natural resources, construction, and maintenance occupations .............
1,680
3.9%
4,508
5.3%
157,049
9.6%
Production, transportation, and material moving occupations ................
4,240
9.8%
8,745
10.2%
276,077
16.9%
Total....................................................................................................
43,048
100.0%
85,864
100.0%
1,629,641
100.0%
Note: (1) Source: U. S. Bureau of the Census, American Community Survey 5-Year Estimates from 2019 - 2023
10
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
The following shows the annual average unemployment rates for the City, the County, the State and the United
States
Annual Average Unemployment Rates(1)(2)
Calendar
The
The
The
United
Year
Citv
County
State
States
2016 ........................
2.3%
2.6%
3.6%
4.9%
2017 ........................
2.4%
2.5%
3.1 %
4.4%
2018 ........................
1.9%
2.0%
2.6%
3.9%
2019 ........................
1.9%
2.0%
2.7%
3.7%
2020(3) ....................
4.9%
4.7%
5.2%
8.1 %
2021 ........................
3.4%
3.4%
3.9%
5.4%
2022 ........................
2.3%
2.4%
2.8%
3.6%
2023 ........................
2.3%
2.4%
2.9%
3.6%
2024 ........................
2.3%
2.4%
3.0%
4.0%
2025(4) ....................
2.4%
2.7%
4.0%
4.4%
Notes: (1) Source: Iowa Workforce Development.
(2) Not seasonally adjusted.
(3) The increase in unemployment rates maybe attributable to the COVID-19 pandemic.
(4) Preliminary rates for the month of January 2025.
Housing
The U.S. Census Bureau 5-year estimated values reported that the median value of the City's owner -occupied homes
was $273,600. This compares to $293,100 for the County and $195,900 for the State. The following table represents the
five year average market value of specified owner -occupied units for the City, the County and the State at the time of the
2019 - 2023 American Community Survey.
Value
Less than $50,000.....
$50,000 to $99,999....
$100,000 to $149,999
$150,000 to $199,999
$200,000 to $299,999
$300,000 to $499,999
$500,000 to $999,999
$1,000,000 or more ...
Total ........................
Home Values(])
The City
Number
Percent
......................... 648
4.5%
......................... 265
1.9%
......................... 819
5.7%
......................... 1,630
11.4%
......................... 5,145
36.1 %
......................... 4,056
28.5%
......................... 1,555
10.9%
......................... 135
0.9%
......................... 14,253
100.0%
The Count
Number
Percent
1,663
4.5%
1,086
3.0%
2,026
5.5%
3,119
8.5%
11,146
30.4%
12,096
33.0%
4,889
13.4%
581
1.6%
36,606
100.0%
The State
Number
Percent
63,971
6.9%
114,185
12.2%
148,846
16.0%
150,857
16.2%
218,680
23.4%
171,690
18.4%
55,091
5.9%
9,298
1.0%
932,618
100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2019 - 2023.
Mortciacie Status
Housing units with a mortgage...........
Housing units without a mortgage......
Total................................................
Mortgage Status(])
The Cit
Number Percent
8,762 61.5%
5,491 38.5%
14,253 100.0%
The Count
Number Percent
23,479 64.9%
12,857 35.1%
36,606 100.0%
The State
Number Percent
556,909 59.7%
375,709 40.3%
932,618 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2019 - 2023.
11
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Income and Benefits
The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of $108,546.
This compares to $115,914 for the County and $94,472 for the State. The following table represents the distribution of
family incomes for the City, the County and the State at the time of the 2019 - 2023 American Community Survey.
Income
Less than$10,000 ...............................
$10,000 to $14,999 ..............................
$15, 000 to $24, 999 ..............................
$25,000 to $34,999 ..............................
$35,000 to $49,999 ..............................
$50,000 to $74,999 ..............................
$75,000 to $99,999 ..............................
$100,000 to $149,999..........................
$150,000 to $199,999..........................
$200,000 or more ................................
Total..................................................
Family Income(])
The Cit
Number
Percent
469
3.8%
187
1.5%
274
2.2%
481
3.9%
929
7.5%
1,624
13.1%
1,555
12.5%
3,130
25.2%
1,427
11.5%
2,358
19.0%
12,434
100.0%
The Count
Number
Percent
872
2.7%
321
1.0%
760
2.3%
1,336
4.1%
2,126
6.5%
4,077
12.5%
3,892
11.9%
8,354
25.6%
4,322
13.2%
6,593
20.2%
32,653
100.0%
The State
Number
Percent
18,523
2.3%
11,137
1.4%
28,592
3.5%
37,338
4.6%
71,799
8.9%
134,430
16.7%
128,208
15.9%
190,685
23.6%
93,727
11.6%
92,289
11.4%
806,728
100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2019 to 2023.
The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of $57,533.
This compares to $74,721 for the County and $73,147 for the State. The following table represents the distribution of
household incomes for the City, the County and the State at the time of the 2019 - 2023 American Community Survey.
Income
Less than$10,000..................................
$10,000 to $14,999.................................
$15,000 to $24,999.................................
$25,000 to $34,999.................................
$35,000 to $49,999.................................
$50,000 to $74,999.................................
$75,000 to $99,999.................................
$100,000 to $149,999 .............................
$150,000 to $199,999 .............................
$200,000 or more ...................................
Total.....................................................
Household Income(])
The Cit
Number
Percent
2,897
9.4%
1,647
5.4%
2,659
8.6%
2,838
9.2%
3,780
12.3%
4,567
14.8%
3,177
10.3%
4,473
14.5%
1,920
6.2%
2,822
9.2%
30.780
100.0%
The Count
Number
Percent
3,948
6.3%
2,317
3.7%
4,044
6.5%
4,854
7.8%
6,601
10.6%
9,440
15.2%
7,185
11.5%
11,061
17.8%
5,316
8.5%
7,448
12.0%
62.214
100.0%
The State
Number
Percent
52,437
4.0%
44,479
3.4%
90,853
7.0%
95,297
7.3%
152,330
11.7%
231,910
17.8%
183,491
14.1%
239,899
18.4%
108,899
8.4%
104.168
8.0%
1,303,763 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2019 - 2023.
12
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Retail Sales
The Department of Revenue provides retail sales figures based on sales tax reports for years ending June 30. The
Department of Revenue figures provide recent data to confirm trends in retail sales activity in the City.
Retail Taxable Sales(])
Fiscal Year
Taxable
Annual Percent
Ending June 30
Sales
Change + H
2015 .............................
$838,853,686
n/a
2016 .............................
853,258,347
1.72%
2017 .............................
874, 928, 988
2.54%
2018 .............................
854,538,416
(2.33%)
2019 .............................
866, 389,134
1.39%
2020 .............................
832,475,900
(3.91 %)
2021 .............................
858,860,019
3.17%
2022 .............................
893,675,646
4.05%
2023 .............................
1, 018, 325, 099
13.95%
2024 .............................
1, 017, 243, 889
(0.11 %)
Growth from 2015
to 2024.........................................
21.27%
Note: (1) Source: the Iowa Department of Revenue.
THE PROJECT
Bond proceeds will be used to: (i) finance the cost of various essential and general corporate purpose capital
improvements (the "Project"), and (ii) pay the costs of issuing the Bonds.
More specifically, the Project includes the financing of the opening, widening, extending, grading and drainage of
the right-of-way of streets, highways, avenues, alleys, and public grounds; the construction, reconstruction, and repairing
of any street and streetscape improvements, including the replacement or planting of trees in public areas, related utility
work, traffic control devices, lighting, trails, sidewalks, and the acquisition of real estate for such purposes; the acquisition,
construction, reconstruction, enlargement, improvement, and repair of bridges, culverts, retaining walls, viaducts,
underpasses, grade crossing separations, and approaches thereto; the acquisition, construction and improvement of works
and facilities useful for the collection and disposal of surface waters and streams, and for the protection of property situated
within the corporate limits from floods or high waters, and for the protection of property from the effects of flood waters;
equipping the fire department; and the rehabilitation and improvement of parks already owned, including facilities,
equipment and improvements commonly found in city parks; to pay costs of the acquisition, reconstruction, redevelopment,
improvement and equipping of a swimming pool, park and related facilities ; to pay costs of the acquisition, construction,
improvement and equipping of recreational grounds and buildings, parks and the acquisition of real estate therefor; to pay
costs of the acquisition, reconstruction, improvement and equipping of fire stations, pools, recreation centers, community
centers and City Hall.
SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT
The City has not issued tax anticipation warrants or revenue anticipation notes during the last five years to meet its
short-term current year cash flow requirements.
The City does not expect to issue any additional general obligation debt in calendar year 2025. The City expects to issue
additional sewer revenue debt in calendar year 2025, but the amount has not been determined at this time.
13
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
DEBT INFORMATION
Debt Limit
The amount of general obligation debt a political subdivision of the State can incur is controlled by the constitutional
debt limit, which is an amount equal to 5% of the actual value of taxable property within the corporate limits, taken from
the last County Tax list. According to and based upon the January 1, 2023 property valuations, for taxes payable in
September 2024 and March 2025, the City's debt limit, based upon said valuation, amounts to the following:
2023 100%Actual Valuation of Property ............................... $8,707,355,872
Constitutional Debt Limit ....................................................... $ 435,367,794
Outstanding Bonds/Notes Applicable to Debt Limit
Total G.O. Debt Subject to Debt Limit ....................................
$ 56,970,000"
TIF Revenue Debt.................................................................
8,975,000
Subscription Liability.............................................................
406,000""
OtherLoans..........................................................................
210,784
Other Legal Indebtedness (TIF Rebates) ..............................
29,620,446""
Total Applicable Debt............................................................
$ 96,182,230"
Remaining Debt Capacity...................................................... $ 339,185,564"
Direct Debt
Summary of General Obligation and Tax Increment Debt(1)(2)
(Principal Only)
General Obligation
Series 2016A.......................................................
$ 1,035,000
Series 2017A.......................................................
2,140,000
Series 2018A.......................................................
2,880,000
Series 2019.........................................................
3,765,000
Series 2020.........................................................
3,950,000
Series 2021.........................................................
6,785,000
Series 2022.........................................................
6,950,000
Series 2023.........................................................
6,790,000
Series 2024.........................................................
8,140,000
The Bonds(2)......................................................
14,535,000
Total General Obligation(3)..............................
$56,970,000
Tax Increment Financing Revenue
Series 2016E....................................................... $ 8,975,000
Total Tax Increment ......................................... $ 8,975,000
Total(3)............................................................................. $65,945,000
Notes: (1) Source: the City.
(2) After the June 1, 2025 pricipal payments on the outstanding
debt.
(3) Subject to change.
*Subject to change.
**The Iowa Supreme Court has not formally ruled on the question of whether rebate agreements, and also certain lease assets and liabilities previously classed as
operating leases, which pursuant to GASB 87 are now required to be recognized as a lease liability and an intangible right -to -use lease asset, constitute an indebtedness
of a City for constitutional debt purposes. Though the subscription liabilities and rebate agreements noted herein may not constitute legal indebtedness for constitutional
debt limit purposes, amounts reflected above are memorialized in the table to conservatively state the City's possible financial exposure.
14
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
General Obligation Debt(1)(2)
(Principal Only)
Fiscal Year
Ending
Series
Series
Series
Series
Series
Series
Series
Series
Series
June 30
2016A
2017A
2018A
2019
2020
2021
2022
2023
2024
2026...........................................
$1,035,000
$1,055,000
$ 940,000
$ 905,000
$ 790,000
$1,135,000
$ 995,000
$ 920,000
$ 905,000
2027...........................................
0
1,085,000
960,000
940,000
790,000
1,135, 000
995,000
920,000
905,000
2028...........................................
0
0
980,000
960,000
790,000
1,135, 000
995,000
920,000
905,000
2029...........................................
0
0
0
960,000
790,000
1,135, 000
995,000
920,000
905,000
2030...........................................
0
0
0
0
790,000
1,135, 000
995,000
920,000
905,000
2031...........................................
0
0
0
0
0
1,110, 000
995,000
925,000
905,000
2032...........................................
0
0
0
0
0
0
980,000
925,000
905,000
2033...........................................
0
0
0
0
0
0
0
340,000
905,000
2034...........................................
0
0
0
0
0
0
0
0
900,000
Total .........................................
$1,035,000
$2,140,000
$2,880,000
$3,765,000
$3,950,000
$6,785,000
$6,950,000
$6,790,000
$8,140,000
Fiscal Year
Outstanding
Total
Ending
General Obligation
The
General Obligation
Cumulative Retirement(3)
Principal &
June 30
Debt
Bonds(3)
Debt(3)
Amount
Percent
Interest(3)
2026...........................................
$ 8,680,000
$ 2,200,000
$10,880,000
$10,880,000
19.10%
$13,168,791
2027...........................................
7,730,000
1,375,000
9,105,000
19,985,000
35.08%
10,957,202
2028...........................................
6,685,000
1,370,000
8,055,000
28,040,000
49.22%
9,550,178
2029...........................................
5,705,000
1,370,000
7,075,000
35,115,000
61.64%
8,259,827
2030...........................................
4,745,000
1,370,000
6,115,000
41,230,000
72.37%
7,028,828
2031...........................................
3,935,000
1,370,000
5,305,000
46,535,000
81.68%
5,990,727
2032...........................................
2,810,000
1,370,000
4,180,000
50,715,000
89.02%
4,651,190
2033...........................................
1,245,000
1,370,000
2,615,000
53,330,000
93.61%
2,902,900
2034...........................................
900,000
1,370,000
2,270,000
55,600,000
97.60%
2,443,000
2035...........................................
0
1,370,000
1,370,000
56,970,000
100.00%
1,438,500
Total .........................................
$42,435,000
$14,535,000
$56,970,000
$66,391,143
Notes:
(1) Source: the City.
(2) After the June 1, 2025 principal payments on the outstanding debt.
(3) Subject to change.
The remainder of this page was left blank intentionally.
15
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Statement of Bonded Indebtedness(1)(2)
City Actual Value, January 1, 2023.............................................................................................................................................................
$8,707,355,872
City Taxable Value, January 1, 2023..........................................................................................................................................................
$4,517,497,103
Per Capita
Applicable
Ratio to City
Ratio to City
(2020 Pop.
Total Percent
Amount
Actual Value
Taxable Value
74,828)
Direct Bonded Debt(3)................................... $ 56,970,000 100.00%
$ 56,970,000
0.65%
1.26%
$ 761.35
TIF Revenue Debt ......................................... 8,975,000 100.00%
8,975,000
0.10%
0.20%
119.94
Overlapping Debt:
Iowa City Community School District ............. $150,315,008 57.65%
86,656,602
1.00%
1.92%
1,158.08
Clear Creek-Amana Community School Dist. 113,825,000 0.03%
34,148
0.00%
0.00%
0.46
Kirkwood Community College(4) ................... 61,745,217 13.98%
8,631,981
0.10%
0.19%
115.36
Johnson County ............................................ 25,563,000 41.48%
10,603,532
0.12%
0.23%
141.71
Total Applicable Overlapping Bonded Debt...............................................$105,926,263
1.22%
2.35%
$1,415.60
Total Direct and Overlapping Bonded Debt(3)...........................................$171,871,263
1.97%
3.81%
$2,296.88
PerCapita Actual Value....................................................................................................................................................................................
$116,364.94
PerCapita Taxable Value..................................................................................................................................................................................
$ 60,371.75
Notes: (1) Source: the City, Audited Financial Statements and Treasurer of the State of Iowa - Outstanding
Obligations Report, debt as of June 30,
2024 for the School Districts, Community College and County.
(2) As of the date of issuance for the Direct Bonded Debt and June 30, 2024 for Overlapping Debt.
(3) Subject to change.
(4) Excludes $38,525,000 in Industrial New Jobs Training Certificates, which are expected
to be paid
by proceeds from anticipated job credits
from withholding taxes.
PROPERTY ASSESSMENT AND TAX INFORMATION
Property Tax Assessment
In compliance with Section 441.21 of the Iowa Code, the Director annually directs all county auditors to apply
prescribed statutory percentages to the assessments of certain categories of real property. The final values, called Actual
Valuation, are then adjusted by the County Auditor. Assessed or Taxable Valuation subject to tax levy is then determined
by the application of State determined rollback percentages, principally to residential property and commercial property.
Beginning in 1978, the State required a reduction in Actual Valuation to reduce the impact of inflation on its
residents. The resulting value is defined as the Assessed or Taxable Valuation. Such rollback percentages may be changed
in future years. Certain historical rollback percentages for residential, multi -residential, agricultural and commercial
valuations are as follows:
Percentages for Taxable Valuation After Rollbacks(])
Multi- Ag Land Commercial
Fiscal Year Residential Residential & Buildings & Industrial
2017/18................ 56.9391% 82.5000% 47.4996% 90.0000%
2018/19................ 55.6209% 78.7500% 54.4480% 90.0000%
2019/20................ 56.9180% 75.0000% 56.1324% 90.0000%
2020/21................ 55.0743% 71.2500% 81.4832% 90.0000%
2021/22................ 56.4094% 67.5000% 84.0305% 90.0000%
2022/23................ 54.1302% 63.7500% 89.0412% 90.0000%
2023/24................ 54.6501 % n/a 91.6430% 90.0000%
2024/25................ 46.3428% n/a 71.8370% 90.0000%
2025/26................ 47.4316% n/a 73.8575% 90.0000%
Notes: (1) Source: the Iowa Department of Revenue.
(2) In assessment year 2024 (applicable to fiscal year 2025/26 valuations), the
taxable value rollback rate is 47.4316% of actual value for residential
property; 73.8575% of actual value for agricultural property and 100.0000%
of the actual value of utility property. The residential taxable rollback rate of
47.4316% applies to the value of each property unit of commercial, industrial
and railroad property that exceeds zero dollars ($0), but does not exceed
one hundred fifty thousand dollars ($150,000), with a taxable value rollback
rate of 90.0000% to the value that exceeds one hundred fifty thousand
dollars ($150,000).
16
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Property is assessed on a calendar year basis. The assessments finalized as of January 1 of each year are applied to
the following fiscal year. For example, the assessments finalized on January 1, 2023, are used to calculate tax liability for
the tax year starting July 1, 2024 through June 30, 2025.
Building Permits
City Building Permits(])
(Excludes the Value of Land)
Calendar
Year: 2021
New Construction
No. of New Permits .................................... 159
Valuation: .................................................. $ 96,466,791
Remodeling Repair and Additions:
No. of New Permits: ................................... 421
Valuation: .................................................. $ 39,023,795
Total Permits ............................................. 580
Total Valuations ......................................... $135,490,586
Notes: (1) Source: the City.
(2) As of February 2025.
Property Tax Collection
2022
2023
2024
2025(2)
122
86
140
2
$117,011,149
$214,121,385
$ 87,982,355
$1,349,554
421
407
471
43
$ 35,704,172
$ 61,280,189
$ 42,462,451
$3,413,334
543
493
611
45
$152,715,321
$275,401,574
$130,444,806
$4,762,888
Each county is required by State law to collect all tax levies within its jurisdiction and remit, before the fifteenth of
each month, the amount collected through the last day of the preceding month to underlying units of government, including
the City. Property tax payments are made at the office of each county treasurer in full or one-half by September 30 and
March 31, pursuant to the Code of Iowa, Sections 445.36 and 445.37. Where the first half of any property tax has not been
paid by October 1, such installment becomes delinquent. If the second installment is not paid, it becomes delinquent on
April 1. Delinquent taxes and special assessments are subject to a penalty at the rate of one and one-half percent per month,
to a maximum of eighteen percent per annum.
If taxes are not paid when due, the property may be offered at the regular tax sale on the third Tuesday of June
following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments,
interest and penalties due on the property, and funds so received are applied to the payment of taxes. A property owner may
redeem from the regular tax sale, but failing redemption within two years, the tax sale purchaser is entitled to a deed which
in general conveys the title free and clear of all liens except future installments of taxes.
Actual (100%) Valuations for the City(])(2)
Preliminary
Fiscal Year: 2021/22
2022/23
2023/24
2024/25
2025/26
Property Class Levy Year: 2020
2021
2022
2023
2024
Residential........................................................ $5,140,954,110
$5,365,850,652
$6,006,505,164
$7,206,202,564
$7,294,246,105
Agricultural........................................................ 1,727,980
1,574,220
1,650,370
1,789,188
1,661,050
Commercial....................................................... 1,115, 028, 021
1,107, 017, 980
1,116,138,451
1,248,152,812
1, 239, 019, 837
Industrial........................................................... 80,001,410
79,499,810
79,655,130
87,930,360
88,393,670
Multi-residential(3)............................................. 549,444,612
554,767,665
0
0
0
Railroads........................................................... 4,072,190
4,380,355
4,628,817
5,041,874
4,993,223
Utilities without Gas and Electric(4) ................... 4,339,508
2,779,716
269,478
276,868
284,700
Gas and Electric Utility(4).................................. 126,171,274
134,787,151
161,652,144
173,705,884
186,696,295
Less: Exemptions .............................................. (2,392,784)
(2,261,292)
(2,170,544)
(15,743,678)
(28,138,000)
Total................................................................ $7,019,346,321
$7,248,396,257
$7,368,329,010
$8,707,355,872
$8,787,156,880
Percent Change +(-) ........................................ 2.35%(5)
3.26%
1.65%
18.17%
0.92%
Notes: (1) Source: Iowa Department of Management.
(2) Includes tax increment finance (TIF) valuations.
(3) Included in Residential Property Class starting with January 1, 2022 valuations.
(4) See "PROPERTY ASSESSMENT AND TAX INFORMATION - Utility Property Tax Replacement' herein.
(5) Based on 2019 Actual Valuation of $6,857,898,321.
17
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Taxable ("Rollback") Valuations for the City(1)(2)
For the January 1, 2024 levy year, the City's Taxable Valuation was comprised of approximately 75% residential,
23% commercial, 2% industrial, 1% utilities and less than 1% agriculture, railroads and exemptions.
Preliminary
Fiscal Year: 2021/22
2022/23
2023/24
2024/25
2025/26
Property Class Levy Year: 2020
2021
2022
2023
2024
Residential........................................................ $2,899,981,623
$2,904,545,542
$3,282,561,510
$3,339,555,748
$3,459,777,798
Agricultural........................................................ 1,452,029
1,401,705
1,512,444
1,285,294
1,226,809
Commercial....................................................... 1,003,525,240
996,316,203
959,563,607
1,067,462,656
1,060,551,490
Industrial........................................................... 72,001,269
71,549,829
70,894,250
78,155,039
78,596,511
Multi-residential(3)............................................. 370,875,229
353,664,442
0
0
0
Railroads........................................................... 3,664,971
3,942,320
4,150,574
4,518,715
4,475,402
Utilities without Gas and Electric(4) ................... 4,276,538
2,779,716
269,478
276,868
284,700
Gas and Electric Utility(4).................................. 40,595,608
44,017,962
43,501,718
41,986,461
42,653,413
Less: Exemptions .............................................. (2,392,784)
(2,261,292)
(2,170,544)
(15,743,678)
(28,138,000)
Total................................................................ $4,393,979,723
$4,375,956,427
$4,360,283,037
$4,517,497,103
$4,619,428,123
Percent Change +(-) ........................................ 3.19%(5)
(0.41 %)
(0.36%)
3.61 %
2.26%
Notes: (1) Source: Iowa Department of Management.
(2) Includes tax increment finance (TIF) valuations.
(3) Included in Residential Property Class starting with January
1, 2022 valuations.
(4) See "PROPERTY ASSESSMENT AND TAX INFORMATION - Utility Property Tax Replacement" herein.
(5) Based on 2019 Taxable Valuation of $4,258,178,148.
Levies and Tax Collections(])
(Amounts Expressed in Thousands)
The following shows the trend in the City's tax extensions and collections.
Levy
Fiscal
Amount
Amount
Percent
Year
Year
Levied
Collected(2)
Collected
2014.................
2015-16................
$52,034
$52,074
100.08%
2015.................
2016-17................
55,330
55,331
100.00%
2016.................
2017-18................
56,458
56,346
99.80%
2017.................
2018-19................
59,174
59,252
100.13%
2018.................
2019-20................
60,297
58,971
97.80%
2019.................
2020-21 ................
65,849
65,656
99.71%
2020.................
2021-22................
66,912
67,075
100.24%
2021.................
2022-23................
66,474
66,259
99.68%
2022.................
2023-24................
66,313
66,083
99.65%
2023.................
2024-25................
68,821
- - In Collections
- -
Notes: (1)
Source: the State
of Iowa Department of Management and the City. Does
not include Levies or Collections for Utility Replacement. Does not include
levies and collections for the City's tax
increment finance district.
(2)
Includes delinquent taxes.
The remainder of this page was left blank intentionally.
18
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Larger Taxpayers(])
(amounts expressed in thousands)
Levy Year 2023
Taxpayer Name
Business/Service
Assessed Valuation(2)
MidAmerican Energy.............................................................
Utility ....................................................................
$102,419
Rise at Riverfront Crossings, LLC..........................................Apartments..........................................................
68,695
Tailwind Iowa City, LLC.........................................................
Real Estate Development ....................................
57,607
BBCS-Hawkeye Housing LLC...............................................
Real Estate Management/Apartments..................
50,041
1201 Gilbert, LLC..................................................................
Residential Property .............................................
45,412
Hollingsworth Capital Partners Iowa LLC ...............................
Real Estate Developer.........................................
31,989
Webber- Iowa LLC...............................................................
Real Estate..........................................................
31,810
Augusta Place LLC................................................................
Real Estate Management.....................................
29,355
Vesper Iowa City LLC...........................................................
Real Estate Management.....................................
28,000
Michael T. McLaughlin...........................................................
Real Estate Management & Development............
25,787
Total.................................................................................................................................................................
$471,115
Ten Larger Taxpayers as Percent of City's 2023 Assessed Valuation($8,787,156,880)...................................
5.36%
Notes: (1) Source: the City.
(2) Every effort has been made to seek out and report the larger taxpayers. However, many of the taxpayers listed
contain multiple parcels and it is possible that some parcels and their valuations have been overlooked.
Tax Rates
Levy Years 2019 - 2023(1)(2)
(Per $1,000 Actual Valuation)
Fiscal Year:
2020/21
2021/22
2022/23
2023/24
2024/25
Levy Year:
2019
2020
2021
2022
2023
City:
General Fund .....................................................
$ 8.10000
$ 8.10000
$ 8.10000
$ 8.10000
$ 8.40196
Emergency Levy .................................................
0.24000
0.24000
0.20000
0.20000
0.00000
Debt Service Fund ..............................................
2.57846
2.47846
2.47846
2.47846
2.57650
Employee Benefits .............................................
3.34415
3.34415
3.34415
3.34415
3.34415
Capital Improvement ..........................................
0.00000
0.00000
0.00000
0.00000
0.00000
Other..................................................................
1.51044
1.51044
1.51044
1.51044
1.31044
Total City..........................................................
$15.77305
$15.67305
$15.63305
$15.63305
$15.63305
Johnson County .................................................
$ 6.34581
$ 6.16774
$ 6.04075
$ 6.06180
$ 6.43080
Iowa City School District .....................................
14.83935
14.85066
14.93382
16.27411
16.81865
Kirkwood Community College .............................
1.25730
1.31195
1.34462
1.39550
1.39550
Other..................................................................
0.33110
0.32744
0.30673
0.29613
0.31388
Total Tax Rate(3).............................................
$38.54661
$38.33084
$38.25897
$39.66059
$40.59188
Notes: (1) Source: Iowa Department of Management.
(2) Does not include the tax rate for
agriculture.
(3) Taxpayers in the Iowa City Community School District area.
Tax Levy Procedures
The Bonds are general obligations of the City, payable from and secured by a continuing ad valorem tax levied
against all of the taxable real property within the corporate limits of the City. As part of the budgetary process each fiscal
year, the City will have an obligation to request a debt service levy to be applied against all of the taxable real property
within the corporate limits of the City. A failure on the part of the City to make a timely levy request or a levy request by
the City that is inaccurate or is insufficient to make full payments of the debt service of the Bonds for a particular fiscal year
may cause Bond holders to experience delay in the receipt of distributions of principal of and/or interest on the Bonds. In
the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity
of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in
the nature of mandamus requiring the City and certain other public officials to perform the terms of the Resolution for the
Bonds) may have to be enforced from year to year.
wt
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Notwithstanding the foregoing, Iowa Code section 76.2 provides when an Iowa political subdivision issues general
obligation bonds, "the governing authority of these political subdivisions before issuing bonds shall, by resolution, provide
for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest
and principal of the bonds within a period named not exceeding twenty years. A certified copy of this Resolution shall be
filed with the county auditor or auditors of the counties in which the political subdivision is located; and the filing shall
make it a duty of the auditor(s) to enter annually this levy for collection from the taxable property within the boundaries of
the political subdivision until funds are realized to pay the bonds in full."
Utility Property Tax Replacement
Property owned by entities involved primarily in the production, delivery, service and sale of electricity, natural gas
and rate -regulated water utilities ("Utilities") pay a replacement tax based upon the delivery of energy by Utilities in lieu of
property taxes. All replacement taxes are allocated among local taxing bodies by the State Department of Revenue and the
Department of Management. This allocation is made in accordance with a general allocation formula developed by the
Department of Management on the basis of general property tax equivalents. Utility properties paying the replacement tax
are exempt from the levy of property tax by political subdivisions. In addition to the replacement tax, Utility property will
continue to be valued by a special method as provided in the statute and taxed at the rate of three cents per one thousand
dollars for the general fund of the State.
By statute, the replacement tax collected by the State and allocated among local taxing bodies (including the City)
shall be treated as property tax when received and shall be disposed of by the county treasurer as taxes on real estate. It is
possible that the general obligation debt capacity of the City could be adjudicated to be proportionately reduced in future
years if Utility property were determined to be other than "taxable property" for purposes of computing the City's debt limit
under Article XI of the Constitution of the State of Iowa. There can be no assurance that future legislation will not (i)
operate to reduce the amount of debt the City can issue or (ii) adversely affect the City's ability to levy taxes in the future
for the payment of the principal of and interest on its outstanding debt obligations, including the Bonds. Approximately 1%
of the City's levy year 2024 taxable valuation currently is utility property.
Tax Increment Financing
The Code of Iowa currently authorizes the use of two types of tax increment financing by local taxing districts in
the State of Iowa. The first type allows local governments to establish TIF districts for the purposes of financing designated
urban renewal projects which contribute to the urban redevelopment and economic development of the immediate area. The
taxable valuation used for this type of TIF district in the City for levy year 2024 is $124,505,761.
The second type of tax increment financing was authorized by state legislative action in the mid-1980's. The area
community colleges can establish TIF districts by contract with specific local businesses and industries to provide jobs
training programming for new employees of existing expanding businesses or employees of new businesses. The revenues
from these job training TIF districts then retires the debt incurred from the issuance of jobs training certificates which
finance the cost of jobs training programming over a maximum of ten years. Upon payment of all jobs training certificates,
the district dissolves and the incremental value from the new or expanded business reverts to the general tax base. There is
no current valuation for this second type of TIF district.
Property Tax Legislation
Over time, the Iowa Legislature has modified the process and calculation of taxable valuations for various
classifications of property. For example, in 2013 maximum annual taxable value growth due to revaluation of residential
and agricultural property was reduced from 4% to 3%, rollback calculations were modified, a new multi -residential
classification was created, and an appropriation made to replace some lost tax revenue due to rollbacks. In 2019, the process
for hearings on total maximum property tax dollars under certain levies in the City's budget was modified and a super -
majority vote required to raise taxes above a prescribed formula. In 2021, the multi -residential classification was removed,
and a phase out of the appropriation for rollback initiated.
20
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
On May 4, 2023, the Governor signed House File 718 ("HF 718"), a property tax reform law aimed at reducing
property tax growth in Iowa. Among other things, HF 718 permanently consolidates several existing city property tax levies
and creates a new adjusted city general fund levy ("ACGFL"). To control the growth of property taxes, the new ACGFL is
subject to potential limitation or reduction by constraining growth by 2% or 3% each year depending on if certain growth
triggers are met or exceeded during the prior year. The levy limitation is only applicable Fiscal Year 2024/25 through Fiscal
Year 2027/28 and will be specific to each issuer. For Fiscal Year 2023/24, the City will calculate the new ACGFL as the
baseline rate and the first annual ACGFL adjustment will begin Fiscal Year 2024/25. The ACGFL rates for Fiscal Years
2024/25 through 2027/28 are based on growth in city taxed value and the previous year's city tax rate. Beginning in Fiscal
Year 2028/29, all cities go to a $8.10 ACGFL maximum and the levy limitation calculation ceases. Certain levies like debt
service, pensions, employee benefits and capital improvement reserve fund are not included in the new ACGFL limitation.
The City's budget for Fiscal Year 2025/26 will accommodate any reductions in tax revenue due to HF 718.
On May 1, 2024, new legislation ("SF 2442") was signed into law by the Governor, which amongst other things,
adjusts levy rates modified under HF 718 based on default rates and certain growth parameters for taxes and budgets
beginning on or after July 1, 2025.
From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if
enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what
forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that
such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have an adverse impact
on standing appropriations or the future tax collections of the City. Purchasers of the Bonds should consult their tax advisors
regarding any pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel are based upon
existing legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has expressed no opinion as of
any date subsequent thereto or with respect to any pending federal or state tax legislation.
Notwithstanding any modifications to property tax revenues that may result from prior or any pending or future
legislation, the Bonds are secured by an unlimited ad valorem property tax. See "SECURITY AND SOURCE OF
PAYMENT" herein.
FINANCIAL INFORMATION
Financial Reports
The City's financial statements are audited annually by certified public accountants. The government -wide
financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as
are the proprietary fund and fiduciary fund financial statements. The accounting policies of the City conform to accounting
principles generally accepted in the United States of America as applicable to governments. See APPENDIX A for more
detail.
No Consent or Updated Information Requested of the Auditor
The tables and excerpts (collectively, the "Excerpted Financial Information") contained in this "FINANCIAL
INFORMATION" section are from the audited financial statements of the City, including the audited financial statements
for the fiscal year ended June 30, 2024 (the "2024 ACFR"). The 2024 Audit has been prepared by Bohnsack & Frommelt
LLP, Certified Public Accountants, Moline, Illinois, (the "Auditor"), and received by the City Council. The City has not
requested the Auditor to update information contained in the Excerpted Financial Information and the 2024 ACFR; nor has
the City requested that the Auditor consent to the use of the Excerpted Financial Information and the 2024 ACFR in this
Final Official Statement. The inclusion of the Excerpted Financial Information and the 2024 ACFR in this Final Official
Statement in and of itself is not intended to demonstrate the fiscal condition of the City since the date of the 2024 ACFR.
Questions or inquiries relating to financial information of the City since the date of the 2024 ACFR should be directed to
the City.
21
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Summary Financial Information
The following tables are summaries and do not purport to be the complete audits, copies of which are available
upon request. See APPENDIX A for the City's 2024 ACFR. The City's expects its General Fund balance for the fiscal
year ending June 30, 2025 to decrease by approximately $19,400,000. The decrease is due to the planned spend down of
facility reserves for capital projects and use of ARPA funds for council determined priorities. To date, revenues and
expenditures are generally within budgeted amounts. The City has proposed a budget for fiscal year 2026 with an anticipated
decrease to the General Fund balance of approximately $2,900,000.
Statement of Net Position
Governmental Activities(])
(Amounts Expressed in Thousands)
Assets:
Equity in Pooled Cash and Investments ....................................
Receivables:
PropertyTax............................................................................
Accounts and Unbilled Usage ..................................................
Interest....................................................................................
Notes.......................................................................................
Internal Balances.......................................................................
Lease Receivable......................................................................
Due from Other Governments....................................................
Prepaids and Other Assets........................................................
Inventories.................................................................................
Assets Held for Resale..............................................................
Restricted Assets:
Equity in Pooled Cash and Investments ...................................
Capital Assets:
Land and Construction in Progress ..........................................
Other Capital Assets (Net of Accumulated Depreciation
and Amortization).................................................................
TotalAssets...........................................................................
Deferred Outflows of Resources:
Pension Related Deferred Outflows.......
OPEB Related Deferred Outflows..........
Total Deferred Outflows of Resources
Liabilities:
Accounts Payable......................................................................
Contracts Payable.....................................................................
Accrued Liabilities.....................................................................
InterestPayable........................................................................
Deposits....................................................................................
Advances from Grantors............................................................
Due to Other Governments........................................................
Noncurrent Liabilities:
Due Within One Year:
Employee Vested Benefits......................................................
Subscription Liability...............................................................
BondsPayable.......................................................................
Due in More Than One Year:
Employee Vested Benefits......................................................
Subscription Liability...............................................................
Net Pension Liability...............................................................
Other Post Employment Benefits Liability ...............................
NotesPayable........................................................................
BondsPayable.......................................................................
Total Liabilities.......................................................................
(continued on following page)
Audited as of June 30
2020
2021
2022
2023
2024
$113,883
$130,934
$147,916
$149,259
$155,713
66,479
67,644
66,659
66,779
69,847
707
1,002
904
829
595
547
76
60
560
1,148
5,300
5,141
4,793
5,331
5,237
(22,551)
(24,229)
(25,980)
(27,097)
(28,722)
0
0
98
56
184
7,125
5,651
7,486
7,270
5,380
13
0
0
0
0
793
786
935
900
944
480
400
1,820
2,058
6,335
19,743
25,056
30,330
32,632
29,706
41,160
38,054
42,344
52,348
58,725
232,717
240,561
234,488
232,647
231,537
466 396
$491,076
$511,853
$523,572
$536,629
$ 10,119
$ 12,833
$ 6,941
$ 7,164
$ 11,734
1,302
1,628
1,381
1,155
1,326
$ 11,421
$ 14,461
$ 8,322
$ 8,319
$ 13,060
$ 3,494
$ 2,913
$ 3,619
$ 2,933
$ 3,081
3,725
2,840
4,131
3,993
3,998
5,558
5,958
5,803
3,902
3,521
158
163
172
180
189
1,222
1,124
1,136
1,381
1,421
3
9,470
16,830
14,293
3,091
38
45
34
35
42
1,525
1,546
1,461
1,483
1,487
0
0
0
135
145
11,119
11,536
11,463
11,512
12,007
1,206
1,204
1,127
1,146
1,139
0
0
0
182
110
39,796
47,299
8,291
29,470
34,767
6,253
7,030
5,796
6,228
6,736
211
211
211
211
211
58,653
57,931
57,180
55,587
54,375
132 961
$149,270
$117,254
$132,671
$126,320
22
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Statement of Net Position
Governmental Activities(])
(Amounts Expressed in Thousands)
(continued from previous page)
Audited as of June 30
2020
2021
2022
2023
2024
Deferred Inflows of Resources:
Pension Related Deferred Inflows ............................................
$ 3,045
$ 1,253
$ 27,830
$ 2,919
$ 1,036
OPEB Related Deferred Inflows ..............................................
560
492
1,828
1,696
1,715
Lease Related Deferred Inflows ...............................................
0
0
98
56
184
Succeeding Year Property Taxes ............................................
65,850
66,912
66,475
66,312
68,820
Total Deferred Inflows of Resources ......................................
69,455
68,657
96,231
70,983
71,755
Net Position:
Net Investment in Capital Assets ...............................................
$220,004
$228,418
$230,285
$235,218
$238,351
Restricted for or by:
Employee Benefits...................................................................
3,875
3,973
4,446
4,655
3,953
Capital Projects:
Expendable(2)........................................................................
11,464
12,266
13,180
15,019
18,750
Nonexpendable(2)..................................................................
278
218
243
269
274
Debt Service............................................................................
9,590
7,388
7,190
7,246
7,419
Police......................................................................................
294
271
285
260
237
Other Purposes
Expendable............................................................................
4,552
6,300
8,473
9,217
10,363
Nonexpendable......................................................................
69
69
69
69
69
Grant Agreement.....................................................................
3,456
3,179
3,014
3,313
3,251
Unrestricted...............................................................................
21,819
25,528
39,505
52,971
68,947
Total Net Position..................................................................
S275,401
S287 610
S306,690
S328,237
$351,614
Notes: (1) Source: Audited financial statements
of the City for the fiscal years ended June 30, 2020 through 2024.
(2) For fiscal year 2019 amount is classified
as expendable.
Statement of Activities
Governmental Activities(])
(Amounts Expressed in Thousands)
Audited for the Year Ended June 30
2020
2021
2022
2023
2024
Function/Programs:
Governmental Activities:
Public Safety...........................................................................
$ (22,728)
$ (25,853)
$ (18,337)
$ (21,081)
$ (23,620)
Public Works...........................................................................
(4,737)
(2,958)
(3,039)
(6,012)
(4,330)
Culture and Recreation............................................................
(15,451)
(15,442)
(15,902)
(16,892)
(17,896)
Community and Economic Development .................................
(7,760)
(4,792)
(4,275)
(6,551)
420
General Government...............................................................
(6,137)
(8,757)
(5,677)
(6,907)
(8,641)
Interest on Long -Term Debt .....................................................
(1,452)
(1,561)
(1,553)
(1,622)
(1,624)
Total Governmental Activities ................................................
58 265
59 363
48 783
59 065
55 691
General Revenues:
Property Taxes, Levied for General Purposes .........................
$ 62,846
$ 69,482
$ 70,678
$ 70,824
$ 70,578
Hotel/Motel Tax.......................................................................
1,135
938
1,708
1,885
2,043
Gas and Electric Tax...............................................................
677
644
684
784
748
Utility Franchise Tax................................................................
884
994
1,149
1,117
983
Grants and Contributions Not Restricted to Specific Purposes.
1,513
1,587
1,555
1,244
1,675
Earnings (loss) on Investments ................................................
2,585
841
(544)
4,325
8,894
Gain on Disposal of Capital Assets ..........................................
ill
213
257
1,242
418
Miscellaneous..........................................................................
3,331
3,030
3,524
3,984
3,903
Transfers...................................................................................
(6,387)
(6,157)
(11,148)
76)
1�74)
Total General Revenues and Transfers .................................
66,695
71,572
67,863
80,52
79,068
Changes in Net Position............................................................
$ 8,430
$ 12,209
$ 19,080
$ 21,464
$ 23,377
Net Position Beginning of Year ..................................................
266,971
275,401
287,610
306,773
328,237
Net Position End of Year........................................................... S275,401 $287 610 S306,690 I
Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2020 through 2024
23
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Balance Sheet
General Fund(])
(Amounts Expressed in Thousands)
Assets:
Equity in Pooled Cash and Investments ....................................
Receivables:
PropertyTaxes........................................................................
Accounts and Unbilled Usage ..................................................
Interest....................................................................................
Notes.......................................................................................
Due from Other Funds...............................................................
Lease Receivable......................................................................
Due from Other Governments....................................................
PrepaidItem..............................................................................
Assets Held for Resale..............................................................
Restricted Assets:
Equity in Pooled Cash and Investments ...................................
TotalAssets...........................................................................
Liabilities, Deferred Inflows of Resources and Fund Balance:
Liabilities:
Accounts Payable....................................................................
Accrued Liabilities....................................................................
Due to Other Governments......................................................
Liabilities Payable from Restricted Assets:
Deposits.................................................................................
Advances from Grantors.........................................................
Total Liabilities.......................................................................
Deferred Inflows of Resources:
Unavailable Revenues:
Succeeding Year Property Taxes ...........................................
Lease related deferred inflows ................................................
Grants....................................................................................
Other......................................................................................
Total Deferred Inflows of Resources ......................................
Audited as of June 30
2020
2021
2022
2023
2024
$42,371
$51,870
$ 57,398 $
57,640
$ 64,686
40,081
40,959
40,442
40,444
42,704
355
508
508
534
154
163
24
14
183
408
1,252
1,073
976
1,288
1,330
299
174
0
214
211
0
0
39
16
164
3,661
2,080
2,764
2,716
2,618
13
0
0
0
0
480
400
1,820
2,058
6,335
2,209
S90.884
2,134
S99222
2,928
S106,889
3,348
S108 441
3,433
$122,043
$ 1,356
$ 1,672
$ 2,217
$ 1,796
$ 1,774
1,673
1,957
2,187
738
997
38
38
34
35
42
1,217
1,115
1,126
1,371
1,411
0
19
19
19
19
4,284
4,801
5,583
3,959
4,243
$39,720
$40,568
$ 40,340
$ 40,187
$ 42,127
0
0
39
16
164
1,791
4
328
304
1
1,716
1,628
1,769
1,939
2,063
43 227
$42,200
42,47
42,446
44,355
Fund Balance:
Nonspendable.........................................................................
$ 549
$ 469
$ 1,889
$ 2,127
$ 6,404
Restricted................................................................................
1,747
1,455
2,015
2,310
2,455
Assigned.................................................................................
5,708
9,883
14,852
19,622
18,437
Unassigned.............................................................................
35,369
40,414
40,074
37,977
46,149
Total Fund Balance...............................................................
$43,373
$52,221
58,830
62,036
73,445
Total Liabilities, Deferred Inflows of Resources
and Fund Balance ..........................................
Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2020 through 2024
The remainder of this page was left blank intentionally.
24
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund(])
(Amounts Expressed in Thousands)
Audited Fiscal Year Ended June 30
2020
2021
2022
2023
2024
Revenues:
Taxes.......................................................................................
$38,087
$42,635
$43,691
$43,989
$43,649
Licenses and Permits...............................................................
2,352
2,541
2,786
2,854
3,036
Intergovernmental....................................................................
4,009
5,924
4,046
3,918
4,750
Charges for Service..................................................................
1,113
808
1,711
1,352
1,201
Fines and Forfeits.....................................................................
609
375
434
372
392
Use of Money and Property......................................................
1,102
456
33
1,591
2,997
Miscellaneous...........................................................................
2,031
1,688
1,694
2,163
2,260
Total Revenues.....................................................................
$49,303
$54,427
$54,395
$56,239
$58,285
Expenditures:
Current:
Public Safety...........................................................................
$24,611
$24,764
$25,783
$26,923
$27,819
Public Works...........................................................................
2,219
2,076
2,527
2,700
2,844
Cultural and Recreation...........................................................
13,146
12,407
14,722
15,317
15,888
Community and Economic Development .................................
3,678
3,487
3,325
3,556
4,605
General Government...............................................................
6,336
6,676
7,310
7,777
8,921
Debt Service:
Principal..................................................................................
0
0
0
0
95
Interest....................................................................................
0
0
0
0
6
Capital Outlay............................................................................
2,088
1,828
1,291
1,436
1,835
Total Expenditures.................................................................
$52,078
$51,238
$54,958
$57,709
$62,013
Excess (Deficiency) of Revenues Over (Under) Expenditures ...
2 775
3,189
(563)
(1,470)
(3,728)
Other Financing Sources (Uses):
Issuance of Debt......................................................................
$ 0
$ 0
$ 0
$ 0
$ 90
Sale of Capital Assets..............................................................
111
233
255
129
211
Transfers In..............................................................................
12,578
12,567
14,167
13,034
23,252
Transfers Out...........................................................................
(7.159)
(7.141)
(7.250)
(8.487)
(8.416)
Total Other Financing Sources and (Uses) ............................
5,530
5,659
7,172
4,676
$15,137
Net Change in Fund Balance .....................................................
$ 2,755
$ 8,848
$ 6,609
$ 3,206
$11,409
Fund Balance, Beginning...........................................................
40,618
43,373
52,221
58,830
62,036
Fund Balance, Ending............................................................... $� 1
Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2020 through 2024
REGISTRATION, TRANSFER AND EXCHANGE
See also APPENDIX B - DESCRIBING BOOK -ENTRY -ONLY ISSUANCE for information on registration,
transfer and exchange of book -entry bonds. The Bonds will be initially issued as book -entry bonds.
The City shall cause books for the registration and for the transfer of the Bonds to be kept at the principal office
maintained for the purpose by U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the "Bond Registrar").
The City will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the
City for use in the transfer and exchange of Bonds.
Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment
of the charges as set forth in the Resolution. Upon surrender for transfer or exchange of any Bond at the principal office
maintained for the purpose by the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments
of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner's attorney
duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of
the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same
maturity and interest rate of authorized denominations, for a like aggregate principal amount.
25
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond, and
the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal
amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal
amount of Bonds for such maturity less Bonds previously paid.
The Bond Registrar shall not be required to transfer or exchange any Bond following the close of business on the
fifteenth day of the month next preceding an interest payment date on such bond (known as the record date), nor to transfer
or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen days
next preceding mailing of a notice of redemption of any Bonds.
The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof
for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the
registered owner thereof or such owner's legal representative. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may
require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with
any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a
bond surrendered for redemption.
TAX MATTERS
Tax Exemption
Federal tax law contains a number of requirements and restrictions that apply to the Bonds, including investment
restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of Bond
proceeds and facilities financed with Bond proceeds, and certain other matters. The City has covenanted to comply with all
requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for federal
income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to become
includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.
Subject to the City's compliance with the above -referenced covenants, under present law, in the opinion of Bond
Counsel, interest on the Bonds is excludable from gross income for federal income tax purposes. Interest on the Bonds is
not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such
interest may be taken into account for the purpose of computing the alternative minimum tax imposed on certain
corporations.
Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal
income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax,
financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or
Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase
or carry tax-exempt obligations Bond Counsel will not express any opinion as to such collateral tax consequences.
Prospective purchasers of the Bonds should consult their tax advisors as to collateral federal income tax consequences.
The interest on the Bonds is not exempt from present Iowa income taxes. Ownership of the Bonds may result in
other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such
collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax
advisors regarding the applicability of any such state and local taxes.
NOT -Qualified Tax -Exempt Obligations: The City will NOT designate the Bonds as "qualified tax-exempt
obligations" under the exception provided in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code").
.:
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Discount and Premium Bonds
The initial public offering price of certain Bonds may be less than the amount payable on such Bonds at maturity
("Discount Bonds"). Purchasers of Discount Bonds should consult with their own tax advisors with respect to the
determination of accrued original issue discount on Discount Bonds for federal income tax purposes and with respect to the
state and local tax consequences of owning and disposing of Discount Bonds. It is possible that, under applicable provisions
governing determination of state and local income taxes, accrued interest on Discount Bonds may be deemed to be received
in the year of accrual even though there will not be a corresponding cash payment.
The initial public offering price of certain Bonds may be greater than the amount of such Bonds at maturity
("Premium Bonds"). Purchasers of the Premium Bonds should consult with their own tax advisors with respect to the
determination of amortizable premium on Premium Bonds for federal income tax purposes and with respect to the state
and local tax consequences of owning and disposing of Premium Bonds.
Other Tax Advice
In addition to the income tax consequences described above, potential investors should consider the additional
tax consequences of the acquisition, ownership, and disposition of the Bonds. For instance, state income tax law may
differ substantially from state to state, and the foregoing is not intended to describe any aspect of the income tax laws
of any state. Therefore, potential investors should consult their own tax advisors with respect to federal tax issues and with
respect to the various state tax consequences of an investment in Bonds.
Audits
The Internal Revenue Service (the "Service") has an ongoing program of auditing tax-exempt obligations to
determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income
of the owners thereof for federal income tax purposes. To the best of the City's knowledge, no obligations of the City are
currently under examination by the Service. It cannot be predicted whether or not the Service will commence an audit of
the Bonds. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the
Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect
the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome.
Reporting and Withholding
Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the
Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such
payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and
Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report
any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding
requirements do not affect the excludability of such interest from gross income for federal tax purposes.
Tax Legislation
Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may be
considered by the Iowa General Assembly. Court proceedings may also be filed, the outcome of which could modify the
tax treatment. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance
of the Bonds will not have an adverse effect on the tax status of interest or other income on the Bonds or the market value
or marketability of the Bonds. These adverse effects could result, for example, from changes to federal or state income tax
rates, changes in the structure of federal or state income taxes (including replacement with another type of tax), or repeal
(or reduction in the benefit) of the exclusion of interest on the Bonds from gross income for federal or state income tax
purposes for all or certain taxpayers.
27
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by
relevant judicial and regulatory authorities as of the date of issuance and delivery of the bonds, and Bond Counsel has
expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory
initiatives or litigation.
Enforcement
There is no trustee or similar person to monitor or enforce the terms of the Resolution. In the event of a default in
the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the
Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus
requiring the City and certain other public officials to perform the terms of the Resolution) may have to be enforced from
year to year.
The owners of the Bonds cannot foreclose on property within the boundaries of the City or sell such property in
order to pay the debt service on the Bonds. In addition, the enforceability of the rights and remedies of owners of the Bonds
may be subject to limitation as set forth in Bond Counsel's opinion. The opinion will state, in part, that the obligations of
the City with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar
laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, to the exercise of
judicial discretion in appropriate cases and to the exercise by the State and its governmental bodies of the police power
inherent in the sovereignty of the State and to the exercise by the United States of America of the powers delegated to it by
the Constitution of the United States of America.
The Opinion
The FORM OF LEGAL OPINION, in substantially the form set out in APPENDIX C to this Preliminary Official
Statement, will be delivered at closing.
Bond Counsel's opinion is not a guarantee of a result, or of the transaction on which the opinion is rendered, or of
the future performance of parties to the transaction, but represents its legal judgment based upon its review of existing
statutes, regulations, published rulings and court decisions and the representations and covenants of the City described in
this section. No ruling has been sought from the Service with respect to the matters addressed in the opinion of Bond
Counsel and Bond Counsel's opinion is not binding on the Service, nor does the rendering of the opinion guarantee the
outcome of any legal dispute that may arise out of the transaction. Bond Counsel assumes no obligation to update its
opinion after the issue date to reflect any further action, fact or circumstance, or change in law or interpretation, or otherwise.
Bond Counsel Review
Bond Counsel has approved the language describing the Iowa and Federal law pertinent to the validity of and the
tax-exempt status of interest on the Bonds included in this "TAX MATTERS" Section but has not otherwise participated
in the preparation of this Preliminary Official Statement and will not pass upon its accuracy, completeness or sufficiency.
Bond Counsel has not examined, nor attempted to examine or verify, any of the financial or statistical statements or data
contained in this Preliminary Official Statement, and will express no opinion with respect thereto.
ALL POTENTIAL PURCHASERS OF THE BONDS SHOULD CONSULT WITH THEIR TAX
ADVISORS WITH RESPECT TO FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF OWNERSHIP
OF THE BONDS (INCLUDING BUT NOT LIMITED TO THOSE LISTED ABOVE).
28
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
CONTINUING DISCLOSURE
For the purpose of complying with paragraph (b)(5) of the Rule, the City will covenant and agree, for the benefit of
the registered holders or beneficial owners from time to time of the outstanding Bonds to provide reports of specified
information and notice of the occurrence of certain events, as hereinafter described (the "Disclosure Covenants"). The
information to be provided on an annual basis, and the events as to which notice is to be given, is set forth in "APPENDIX
D — Form of Continuing Disclosure Certificate". This covenant is being made by the City to assist the Underwriter(s) in
complying with the Rule.
Breach of the Disclosure Covenants will not constitute a default or an "Event of Default" under the Bonds or
Resolution, respectively. A broker or dealer is to consider a known breach of the Disclosure Covenants, however, before
recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe
the Disclosure Covenants may adversely affect the transferability and liquidity of the Bonds and their market price.
Pursuant to the Rule, in the last five years, the City believes it has complied in all material respects with regard to
its prior Disclosure Covenants.
Bond Counsel expresses no opinion as to whether the Disclosure Covenants comply with the requirements of
Section (b)(5) of the Rule.
OPTIONAL REDEMPTION
Bonds due June 1, 2026 - 2032 inclusive, are not subject to optional redemption. The Issuer reserves the right to
optionally prepay part or all of the Bonds maturing in each of the years 2033 through 2035, prior to and in any order of
maturity, on June 1, 2032, or any date thereafter, upon terms of par and accrued interest. If less than all of the Bonds of any
like maturity are to be redeemed, the particular par of those Bonds to be redeemed shall be selected by the Bond Registrar
by lot. The Bonds may be call in part in one or more units of $5,000.
If less than all of the maturity is called for redemption, the City will notify DTC of the particular amount of such
maturity to be redeemed prior to maturity. DTC will determine by lot the amount of each Participant's interest in such
maturity to be redeemed and each Participant will then select by lot the beneficial ownership interests in such maturity to
be redeemed.
Thirty days' written notice of redemption shall be given to the registered owner of the Bond. Failure to give written
notice to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the
redemption of the Bonds. All Bonds or portions thereof called for redemption will cease to bear interest after the specified
redemption date, provided funds for their redemption are on deposit at the place of payment. Written notice will be deemed
completed upon transmission to the owner of record.
LITIGATION
There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution
or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken
with respect to the issuance or sale thereof. There is no litigation now pending, or to the knowledge of the City, threatened
against the City that is expected to materially impact the financial condition of the City.
ut
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
LEGAL MATTERS
The Bonds are subject to approval as to certain legal matters by Ahlers & Cooney, P.C., Des Moines, Iowa, as Bond
Counsel. Bond Counsel has not participated in the preparation of this Official Statement except for guidance concerning
the tax status of interest on the Bonds discussed in the "TAX MATTERS" section, and will not pass upon its accuracy,
completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify any of the financial or
statistical statements, or data contained in this Official Statement, and will express no opinion with respect thereto. A legal
opinion in substantially the form set forth in APPENDIX C to this Official Statement will be delivered at closing. Ahlers
& Cooney, P.C. is also serving as Disclosure Counsel for the City in connection with the issuance of the Bonds.
The legal opinion to be delivered concurrently with the delivery of the Bonds expresses the professional judgment
of the attorneys rendering the opinion as to legal issues expressly addressed therein. By rendering a legal opinion, the
opinion giver does not become an insurer or guarantor of the result indicated by that expression of professional judgment,
or of the transaction on which the opinion is rendered, or of the future performance of parties to the transaction. Nor does
the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction.
In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set
forth in the Bond Counsel's opinion. The opinion will state, in part, that the obligation of the City with respect to the Bonds
may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights
heretofore or hereafter enacted to the extent constitutionally applicable, and to the exercise of judicial discretion in
OFFICIAL STATEMENT AUTHORIZATION
This Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All statements,
information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the City, and all
expressions of opinion, whether or not so stated, are intended only as such.
This Official Statement is not to be construed as a contract or agreement amongst the City, the Underwriter, or the
holders of any of the Bonds. Any statements made in this Official Statement involving matters of opinion, whether or not
expressly so stated, are intended merely as opinions and not as representations of fact. The information and expressions of
opinions contained herein are subject to change without notice and neither the delivery of this Official Statement or the sale
of the Bonds made hereunder shall, under any circumstances, create any implication that there has been no change in the
affairs of the City since the date hereof. The information contained in this Official Statement is not guaranteed.
INVESTMENT RATING
The City has supplied certain information and material concerning the Bonds and the City to the rating service
shown on the cover page, including certain information and materials which may not have been included in this Official
Statement, as part of its application for an investment rating on the Bonds. A rating reflects only the views of the rating
agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency.
Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and
assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period
of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so
warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market
price of the Bonds. An explanation of the significance of the investment rating may be obtained from the rating agency:
Moody's Investors Service, Inc., 7 World Trade Center at 250 Greenwich Street, New York, New York 10007, telephone
212-553-1658.
30
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on Tuesday, May 6, 2025. The best bid
submitted at the sale was submitted by (the "Underwriter"). The City awarded the contract for sale of the Bonds
to the Underwriter at a price of $ (reflecting the par amount of $ , plus a reoffering premium of
$ and less an Underwriter's discount of $ The Underwriter has represented to the City that the Bonds
have been subsequently re -offered to the public initially at the yields or prices set forth in the Final Official Statement.
The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into unit
investment trusts, certain of which may be sponsored or managed by the Underwriter) at prices lower than the initial public
offering prices stated on the cover page. The initial public offering prices of the Bonds may be changed, from time to time,
by the Underwriter.
The Underwriter intends to engage in secondary market trading of the Bonds subject to applicable securities laws.
The Underwriter is not obligated, however, to repurchase any of the Bonds at the request of the holder thereof.
MUNICIPAL ADVISOR
The City has engaged Speer Financial, Inc. as municipal advisor (the "Municipal Advisor") in connection with the
issuance and sale of the Bonds. The Municipal Advisor is a Registered Municipal Advisor in accordance with the rules of
the MSRB. The Municipal Advisor will not participate in the underwriting of the Bonds. The financial information included
in the Official Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review,
audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of
financial information. The Municipal Advisor is not a firm of certified public accountants and does not serve in that capacity
or provide accounting services in connection with the Bonds. The Municipal Advisor is not obligated to undertake any
independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information
contained in this Official Statement, nor is the Municipal Advisor obligated by the City's continuing disclosure undertaking.
The remainder of this page was left blank intentionally.
31
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
MISCELLANEOUS
Brief descriptions or summaries of the City, the Bonds, the Resolution and other documents, agreements and statutes
are included in this Official Statement. The summaries or references herein to the Bonds, the Resolution and other
documents, agreements and statutes referred to herein, and the description of the Bonds included herein, do not purport to
be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entireties by reference
to such documents, and the description herein of the Bonds is qualified in its entirety by reference to the form thereof and
the information with respect thereto included in the aforesaid documents. Copies of such documents may be obtained from
the City.
Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so
stated, are intended as such and not as representations of fact, and no representation is made that any of the estimates will
be realized. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers
or Owners of any of the Bonds.
The attached APPENDICES A, B, C, and D are integral parts of this Official Statement and must be read together
with all of the foregoing statements.
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such
numbers on any Bonds nor any error in the printing of such numbers shall constitute cause for a failure or refusal by the
purchaser thereof to accept delivery of and pay for any Bonds.
The City has reviewed the information contained herein which relates to it and has approved all such information
for use within this Official Statement. The execution and delivery of this Official Statement has been duly authorized by
the City.
/s/ NICOLE DAVIES
Finance Director
CITY OF IOWA CITY
Johnson County, Iowa
The remainder of this page was left blank intentionally.
32
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
APPENDIX A
CITY OF IOWA CITY
JOHNSON COUNTY, IOWA
FISCAL YEAR 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT
0
1
CITY OF IOWA CITY, IOWA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED DUNE 30
"High Voltage Herky," 2024, designed by members of the IBEW
Local 405 and featured in the 20th Anniversary Edition of the ICGOV.ORG
Herky on Parade community -wide public art installation.
I r
CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
Annual Comprehensive
Financial Report
City of Iowa City, Iowa
For the fiscal year ended June 30, 2024
Prepared by:
Finance Department
City of Iowa City, Iowa
Introductory
Section
Tab
City of Iowa City, Iowa
Table of Contents
June 30, 2024
Page
Introductory Section
Tableof contents................................................................................................................................ I
Letterof transmittal............................................................................................................................ 3
Certificate of Achievement for Excellence in Financial Reporting ................................................... 12
Cityorganizational chart .................................................................................................................... 13
Cityofficials....................................................................................................................................... 14
Financial Section
IndependentAuditor's Report ............................................................................................................
15
Management's Discussion and Analysis............................................................................................
19
Basic Financial Statements
Government -wide financial statements
Statementof net position.............................................................................................................
30
Statementof activities..................................................................................................................
33
Fund financial statements
Balance sheet — governmental funds............................................................................................
34
Reconciliation of the balance sheet of the governmental funds to the statement of net position
35
Statement of revenues, expenditures, and changes in fund balances — governmental funds .......
36
Reconciliation of the statement of revenues, expenditures, and changes in fund balances of
governmental funds to the statement of activities.....................................................................
37
Statement of net position — proprietary funds..............................................................................
38
Statement of revenues, expenses, and changes in fund net position — proprietary funds ............
39
Statement of cash flows — proprietary funds................................................................................
40
Statement of fiduciary net position — custodial fund...................................................................
41
Statement of changes in fiduciary net position — custodial fund .................................................
42
Notes to financial statements..........................................................................................................
43
Required Supplementary Information
Budgetary comparison schedule — budget and actual — all governmental funds and enterprise
funds— budgetary basis....................................................................................
82
Budgetary comparison schedule — budget to GAAP reconciliation ...................................
84
Note to required supplementary information — budgetary reporting ...................................
85
Schedule of the City's proportionate share of MFPRSI net pension liability ........................
86
Schedule of City's MFPRSI contributions................................................................
88
Notes to required supplementary information — MFPRSI pension liability ...........................
90
Schedule of the City's proportionate share of IPERS net pension liability ..........................
92
Schedule of City's IPERS contributions...................................................................
94
Notes to required supplementary information — IPERS pension liability .............................
96
Required supplementary information — schedule of changes in the City's total OPEB liability,
related ratios and notes.....................................................................................
97
Combining Fund Statements
Combining balance sheet — nonmajor governmental funds............................................................
100
Combining statement of revenues, expenditures, and changes in fund balances — nonmajor
governmentalfunds......................................................................................................................
101
Combining statement of net position — nonmajor enterprise funds ................................................
104
Combining statement of revenues, expenses, and changes in fund net position — nonmajor
enterprisefunds............................................................................................................................
105
Combining statement of cash flows — nonmajor enterprise funds ..................................................
106
Combining statement of net position — internal service funds ........................................................
108
1
City of Iowa City, Iowa
Table of Contents
June 30, 2024
Page
Combining Fund Statements (continued)
Combining statement of revenues, expenses, and changes in fund net position — internal
servicefund............................................................................................................................109
Combining statement of cash flows — internal service funds....................................................110
Statistical Section (Unaudited)
Netposition by component...........................................................................................................113
Changesin net position................................................................................................................114
Fund balances — governmental funds...........................................................................................116
Changes in fund balances — governmental funds.........................................................................117
General government tax revenues by source................................................................................118
Assessed and taxable value of property........................................................................................119
Property tax rates — direct and overlapping governments............................................................120
Leviesand collections..................................................................................................................121
Principaltaxpayers.......................................................................................................................122
Larger water system customers....................................................................................................124
Sales history and water system charges........................................................................................125
Larger sewer system customers....................................................................................................126
Sales history and sewer system charges.......................................................................................127
Ratios of outstanding debt by type...............................................................................................128
Ratios of general obligation bonded debt to assessed value and net bonded debt per capita .......
129
Computation of direct and overlapping debt................................................................................130
Legal debt margin information.....................................................................................................131
Schedule of revenue bond coverage.............................................................................................132
Schedule of TIF revenue bond coverage......................................................................................133
Demographic and economic statistics..........................................................................................134
Principalemployers......................................................................................................................135
Full-time equivalent city government employees by function.....................................................136
Operating indicators by function..................................................................................................137
Capitalassets by function.............................................................................................................138
Compliance Section
Independent auditor's report on internal control over financial reporting and on compliance and
other matters based on an audit of financial statements performed in accordance with Government
AuditingStandards.......................................................................................................................139
Independent auditor's report on compliance for each major federal program and report on internal
control over compliance required by the Uniform Guidance.......................................................141
Schedule of expenditures of federal awards.................................................................................144
Notes to the schedule of expenditures of federal awards.............................................................147
Summary Schedule of Prior Audit Findings................................................................................148
Schedule of findings and questioned costs...................................................................................149
`a
December 3, 2024
To the Citizens, Honorable Mayor, Members
of the City Council and City Manager
City of Iowa City, Iowa
i r
miz ®c:rlkt
WA a Mia
I l
CITY OF IOWA CITY
The Annual Comprehensive Financial Report (Annual Report) of the City of Iowa City, Iowa (the
City) for the fiscal year ended June 30, 2024 is submitted herewith in accordance with the
provisions of Chapter 11 of the Code of Iowa. The City's Finance Department prepared this report.
Responsibility for both the accuracy of the data presented and the completeness and fairness of the
presentation, including all disclosures, rest with the City. I believe the information, as presented,
is accurate in all material respects and presented in a manner designed to fairly present the financial
position and results of operations of the City. All disclosures necessary to enable the reader to gain
an understanding of the City's financial affairs have been included.
Management assumes full responsibility for the completeness and reliability of all of the
information presented in this report, based upon a comprehensive framework of internal control
that it has established for this purpose. Because the cost of internal controls should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the
financial statements will be free of any material misstatement.
Bohnsack & Frommelt, LLP, a firm of independent public accountants has issued an unmodified
("clean") opinion on the City's financial statements for the year ended June 30, 2024. Their opinion
is included in the Financial Section of this report.
The City is required to undergo an annual single audit in conformity with the provisions of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance). Information to comply with the
Uniform Guidance and "Government Auditing Standards" is included in the Compliance Section of
this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City's MD&A can be found immediately following the report of the
independent auditors.
Profile of the Government
The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member
Council; each member serves a four-year term. Elections are held every two years allowing for
continuation in office of at least three members at each biennial election. The Council members are
elected at large, with three members nominated from specific districts and the remaining four
members nominated at large. The Council elects the Mayor from its own members for a two-year
term.
The City Council is the legislative body and makes all policy determinations for the City through the
enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain
and spend its funds. The Council appoints members of boards, commissions and committees.
The City Manager is the chief administrative officer for the City and is appointed by the City Council.
The City Manager implements policy decisions of the City Council and enforces City ordinances. In
addition, the City Manager appoints and directly supervises the directors of the City's operating
departments and supervises the administration of the City's personnel system. The City Manager
supervises 572 full-time and 62 part-time permanent municipal employees and 290 temporary
employees, including a police force of 79 sworn personnel and a fire department of 66 firefighters.
The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's Office
administers the City government's documentation, City licenses and permits, and provides
information from the Municipal Code and City Ordinances to the public and other City
departments. The City Clerk's Office is also responsible for distributing and maintaining accurate
records of all City Council proceedings. The Clerk supervises 3 full-time employees.
The City Attorney is also appointed by the City Council and works at the direction of the City
Council. The City Attorney supervises the City Attorney's Office, including 4 Assistant City
Attorneys and 2 other full-time employees. In addition, the City Attorney acts as Chief Legal
Counsel to the City Council, City Manager, the various City departments and staff, and most City
commissions, committees and boards.
The City provides a full range of services including police and fire protection, construction and
maintenance of roads, streets and infrastructure, inspection and licensing functions, a municipal
airport, library, recreational activities, and cultural events. The City owns and operates its water
supply and distribution system and sewage collection and treatment system with secondary treatment
also provided. Virtually the entire City has separate storm and sanitary sewer systems. The City
operates a municipal off-street and on -street parking system in the downtown area. The City also
operates a transit system.
The annual budget serves as the foundation for the City's financial planning and control. All
departments of the City are required to submit requests for appropriation to the City Manager in
October. The City Manager uses these requests as the starting point for developing a proposed budget.
The City Manager then presents this proposed budget to the Council for review in December. The
Council is required to hold a public hearing on the proposed budget and to adopt a final budget no
later than April 30t1i. The appropriated budget is prepared by fund, function (e.g., Public Safety), and
department (e.g., Police).
The City adopts a three-year financial plan that includes both operations and capital improvements.
This three-year plan permits a more comprehensive review of the City's financial condition, allowing
analysis of the current and future needs and requirements. During preparation of the plan, careful
review is made of property tax levy rates, utility and user fee requirements, ending cash balances by
fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and
major capital improvement projects. The state requires at least a one-year operating budget. While
legal spending control is exercised at a state mandated function level, management control is set at
the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control.
Appropriations that are not spent lapse at the end of the year.
Information Useful in Assessing the Government's Economic Condition
The City's economic strength is based on the educational sector, medical services, and diversified
manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the
City's largest employers with over 25,800 employees. The University of Iowa had an enrollment
in fall 2024 of 32,199 students, which is an increase of 543 students from 31,452 students in the
fall of 2023. The academic and research missions of the University, along with the health care
services provided at its hospitals and clinics, have an extremely positive economic impact on the
area.
The City also has a significant number of national and international businesses, including Fortune
500 companies: ACT Inc., NCS Pearson, and Procter & Gamble. In February 2018, Procter &
Gamble announced that in approximately two years they would be shifting their beauty care products
production from Iowa City to their West Virginia plant. The announced plan was to eventually reduce
the workforce from approximately 600 down to 100 employees. This would also impact nearby
businesses that produce bottles and labels for this production plant in Iowa City. In May 2020, Procter
& Gamble announced that they were going to maintain more employees in Iowa City by maintaining
its oral rinse production here and by shifting newer product lines here. In addition, Procter & Gamble
has added and is expanding an electric toothbrush plant in Iowa City which is expected to employ
several hundred employees; it currently has added approximately 100 employees. The estimated
investment in this new facility has been nearly $100 million. Overall, the continued economic
development efforts with the Iowa City and Coralville Chambers of Commerce, private interests, the
University of Iowa, other surrounding communities, and Greater Iowa City, have produced positive
results with the retention and expansion of businesses.
In addition, Iowa's Creative Corridor is a seven -county alliance surrounding Iowa City and has been
identified as one of the major growth areas for new business development in the State of Iowa. This
Corridor gives employers workforce access to a region uniquely Iowan, founded with a
manufacturing heritage, but actively seeking new frontiers and opportunities in information
technology, biotechnology and bioprocessing, renewable energy, insurance and financial services,
advanced manufacturing, and educational services. Continued developments within Iowa City and
the region have a favorable impact upon the City's economy and growth.
According to the 2020 census, the population of Iowa City is 74,828. This is an increase of 6,966
or 10.3% as compared to the 2010 census of 67,862.
As a whole, the City's economy continues to grow, established firms continue to prosper and
expand, and there are opportunities for growth for new businesses; however, the COVID-19
pandemic had a substantial short-term impact on the City's economy. The economy has mostly
recovered from the pandemic and Iowa City's economy has continued to improve. As of June 2024,
Iowa City's unemployment rate was 2.4% while the State of Iowa was at 3.0%, and the National
rate was 4.3%.
The rate of new housing construction also decreased substantially due to the COVID-19 pandemic
in 2020 and the City continues to see an increase in 2023 based on the number of building permits
issued. New housing building permits consisted of 56 new single-family houses and duplexes in
2023 as compared to 98 in 2022; multi -family dwelling units added during calendar year 2023 was
474, compared to 258 in 2022. Altogether new housing additions totaled 530 units valued at
$155,212,855 in 2023 versus a total of 356 units valued at $97,581,126 in 2022. The City did see
an increase in 2023 of value amounts over pre COVID-19 totals valued at $124,362,697 in 2019,
but still had unit numbers below that of 556 units from 2019.
Also reflecting the impact of the COVID-19 pandemic, the City had a decrease in commercial
construction permits between 2019 and 2020. The value of permits for commercial construction
increased from $7,179,000 in 2022 to $17,979,780 in 2023. The value of remodeling permits for
residential and commercial properties increased from $34,628,799 in 2022 to $49,991,191 in 2023.
Total permits issued in 2022 for all purposes was 543 permits for $152,715,321 which was more
permits but less value than the 2023 total permit issuance of 492 permits for $275,401,574.
The COVID-19 pandemic has had a significant short-term economic impact on the City of Iowa
City; however, the City's unemployment rate has dropped steadily since its peak in April 2020 as
the City's economy opened back up. The stability of the University of Iowa coupled with
historically steady employment by the City's multi -sector base of manufacturing and service
industries helps to insulate the City from significant negative impacts of economic recessions. The
City's property valuations continue to rise which is indicative of the City's relative economic
stability.
Major Initiatives
The City of Iowa City developed a 5 year Strategic Plan. The strategic planning process involved
multiple steps, including gathering input from the general public, front-line City staff, department
directors, and the City Council. This Strategic Plan builds on the City's previous plans to foster a
more inclusive, just and sustainable Iowa City by prioritizing the physical, mental and economic
well-being of all residents.
Values
• Partnerships and Engagement
• Climate Action
• Racial equity, social justice, and human rights
Impact Areas & Strategies
Neighborhoods & Housing
• Update the City Comprehensive Plan and Zoning Code to encourage compact
neighborhoods with diverse housing types and land uses.
• Partner in projects that serve as models for desired future development.
• Create inviting and active outdoor spaces with unique and engaging recreation offerings.
• Address the unique needs of vulnerable populations and low -to -moderate income
neighborhoods.
Mobility
Expand the access and convenience of environmentally friendly and regionally connected
public transit.
Design and maintain complete streets that are comfortable and safe for all users.
Grow and prioritize bike and pedestrian accommodations.
Economy
• Reinforce Iowa City as a premier community to locate and grow a business.
• Ensure appropriate infrastructure is in place for future business growth and development.
• Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating
new pathways to success for systemically marginalized populations.
• Build Iowa City's image as the Greatest Small City for the Arts.
• Strengthen the Iowa River's role as a signature community amenity and tourism generator.
Safety & Well-being
Implement and expand innovative public safety models and facilities to improve outcomes
and relationships within the community.
Partner with non -profits to address the most emergent and foundational community safety
and well-being needs.
Build community by fostering social connections and developing safe, accessible public
spaces for gathering.
Resources:
Facilities, Equipment & Technology
People
Invest in the next generation of public facilities and equipment to create immediate
operational efficiencies, boost workplace safety, health, and morale, and improve cross -
department collaboration.
Promote high performance governance leveraging technology, partnerships, and
innovation.
Establish the City of Iowa City as an employer of choice in the region with a pay plan,
benefits package, and flexible work options that attract and retain high -quality and
motivated public service employees.
Carry out a multi -dimensional staff engagement initiative to ensure every City employee
feels welcome, informed, involved, and engaged at work.
Build a diverse talent pipeline.
Financial
Grow the tax base, consider alternative revenue sources, and leverage outside funding to
maintain core services and pursue community priorities while maintaining equitable
property tax rates.
Exercise fiscal responsibility by maintaining and growing assigned and emergency reserve
funds and prudent debt management.
The City Council has also promoted private investment and re -development of other targeted areas
throughout the community. The areas that are currently being focused on include the Riverfront
Crossings area, the Downtown District, the Riverside Drive commercial area, and the Foster Road
Urban Renewal Area.
The Riverfront Crossing area is an initiative to revitalize the area south of Iowa City's downtown
district. This area was hard hit by flooding in 2008 and ideas for improving the district were
initiated as part of a combined flood mitigation plan. The district features a riverfront park with
walking and biking trails, a variety of housing options near shopping, restaurants, a state-of-the-art
recital hall and recreational facilities and is a short walk to downtown Iowa City and the University
of Iowa campus. This area has seen significant development over the past few years.
The Riverfront Crossings area is anchored by a 76.8 acre park that was formerly comprised of
public facilities including the City's north wastewater treatment plant. An $8.5 million hazard
mitigation grant from the State of Iowa assisted the City in removing the public facilities in this
area and then converting the area into a riverfront park and wetland. Construction of phases 1
through 3 of the park began in 2017 and were completed during the fall of 2019; phase 4 of the
park started in 2019 and was completed in the fall of 2020. On the north side of the Riverfront
Crossing area, the University of Iowa recently constructed the Voxman School of Music. On the
opposite side of the street, the redevelopment of an empty lot was completed in the spring of 2019
which includes a 7-story, mixed -use building with 40 apartment units, retail space on the street
level, and office space on the second floor. An adjacent building houses a 7-story Element Hotel
by Marriott. The estimated cost of these developments is approximately $40 million. On the back
side of the School of Music, a new development has been approved for two new 15 story towers
with up to 820 total units and 1,575 beds. This area is approximately one city block in size, will
provide right-of-way to re -connect Capitol Street, and has an estimated investment of $200 million.
In the Downtown District, the City completed a streetscape plan for the Central Business District
which included lighting, landscaping, parking, utility improvements, artwork, and pedestrian
amenities. Reconstruction and enhancements for the Washington Street corridor were completed
in 2017 and reconstruction of Black Hawk mini -park and the downtown pedestrian mall were
completed in 2020. Dubuque Street reconstruction was recently completed which included
updating critical infrastructure, enhanced the retail environment with streetscape components and
improved the pedestrian experience. Other future downtown streetscape projects are scheduled in
the five-year capital improvement program. The downtown has also seen significant private
development over the past few years.
Private development in the downtown area includes a new project completed in 2022, which
includes the historical renovation of several commercial buildings along the pedestrian mall and
the construction of an I I -story, 120,000 square foot multi -residential with 102 residential units.
The total project is estimated to cost $54.4 million. Other buildings in the downtown that have
undergone major re -development recently include the Wilson Building and public space which has
been developed into a 15-story mixed -use development known as the Chauncey; this building has
8 floors of residential units, a 35-unit hotel, two floors of commercial space, a movie theatre and a
bowling alley. The project was estimated to cost $49 million. Also completed was the
redevelopment of the City Hall parking lot and neighboring church into 126 residential units,
parking, and commercial space. The project was estimated to cost $33.4 million. Also new in 2020,
was the addition of a 13,000+ square foot Target in a large downtown store front that had been
vacant for years. This store represents a trend away from big box stores on the edges of town and
a focus on University related downtown foot traffic.
The Riverside Drive commercial area is an area that stretches from the University of Iowa campus
to the intersection of Highways 1 and 6 and is across the river from the Riverfront Crossings
development area. The development of a 4-story, $16.1 million multi-family/student housing
development in the Riverside Drive area was completed in late 2016, and adjacent to this
development several new retail spaces including a gas station/marketplace and additional multi -
residential housing units were also constructed or renovated. The City is developing a streetscape
plan for this area which will include lighting, trails, landscaping, and other amenities and
improvements. Construction of the streetscape and intersection improvements began in 2018 and
were completed in 2020. Additional streetscape and trail improvements are planned for this area
in the future.
Development of the Foster Road Urban Renewal Area is underway which will convert a 53.29 acre
wooded area north of the Downtown area and near Interstate 80 into a new residential/multi-
residential development with a total estimated cost of approximately $33 million. A 53-unit, 55+
senior living facility was recently constructed, and an additional 52 townhomes are planned
adjacent to the facility. The project also extended the Foster Road arterial from Dubuque Street to
Prairie Du Chien Road, and the area will provide Low -Middle Income (LMI) funding through a tax
increment district that can be used by the City anywhere to assist with the development of
affordable housing.
Long-term Financial Planning
It is management's intent to support the major City Council initiatives through budget
appropriations, departmental operations, and employee development so that the organization as a
whole is moving in the same direction.
The passage of property tax reform (SF295) by the state legislature in 2013 is still impacting the
preparation of the year financial plan (FY2025 — FY2027). The property tax reform bill had
multiple components including a property tax rollback for commercial and industrial property,
which reduced the taxable value of these property types. The bill established a State funded
"backfill" to reimburse the City for lost property tax revenues due to the commercial and industrial
rollback. The State "backfill" payments began in fiscal year 2015 but were capped at the fiscal
year 2017 levels for years thereafter. Beginning in fiscal year 2023, the State began phasing out
the "backfill" and it will be fully phased out in five years.
This bill also limited the annual taxable valuation growth of residential and agricultural property to
3 percent, instead of the previous limit of 4 percent. The impact of this provision is that the taxable
percentage of residential property is expected grow at a slower pace. The City will not receive any
money from the State due to lost revenue from this provision.
SF295 also established a multi -residential property classification that includes mobile home parks,
assisted living facilities, and property primarily intended for human habitation. A gradual rollback
will be applied to these properties to eventually tax them similarly to residential property, rather
than commercial, by fiscal year 2024. This will also not be reimbursed by the State of Iowa.
Due to the passage of SF295, the City estimates its net revenue losses to be $26,848,000 for fiscal
years 2015 through 2022. The cumulative net revenue loss from fiscal years 2015 through 2024 is
estimated to be $41,126,902. It is possible that this could affect the City's ability to finance services
at current levels without finding other revenue sources or more efficient ways to deliver services.
In 2023 the state legislature passed additional property tax reform (HF718), which will have a
significant impact on the City's budget starting with FY2025. In addition to eliminating two levies
(Emergency Levy & Library Levy) that the City currently utilizes the bill also reduces the amount
of growth that is allowed for the General Levy. The total impact of this new legislation has not
been estimated yet, but it is anticipated that it will be at least a reduction of $1 million dollars
annually.
The City's long-term financial planning strategy is to promote targeted economic development,
diversify its revenue structure, control spending and create efficiencies, and to build adequate
reserves and contingencies into its financial structure. In addition, the City is annually reviewing
and adjusting its user fees, service charges, and fine structures to try to maintain all of its major
enterprise funds with a positive net income after depreciation but before capital contributions,
transfers, and extraordinary items. The City also continues to strive to reduce the City's property
tax levy rate to be competitive for economic development purposes. In fiscal year 2013, the City's
property tax levy rate was $17.269 per $1,000 of assessed value. The property tax levy rate was
reduced for nine consecutive years to $15.633 in fiscal year 2023 and remained at $15.633 in fiscal
year 2024 and 2025. This has been a reduction of $1.636 per $1,000 of assessed value or 9.47%
over that time period.
In looking at expenses for the FY2023 — FY2026 Financial Plan and FY2025 operating budget, the
City will generally experience increased expenditures; with General Fund expenditures and total
operating expenditures growing at approximately 5% or less from FY2024 to FY2025. Bargaining
unit cost -of -living wage increases are approximately 2% to 4% each year. In prior years, the
budgeted full-time equivalents (FTE) has generally remained flat - from 607.66 in FY2015 to
608.18 in FY2020, but in FY2021, the permanent FTE count increases to 624.08 primarily due to
the conversion of temporary workers to permanent part-time or permanent full-time positions. In
FY2022 & FY2023, three additional positions were added each year bringing the City's total FTE
to 630.90. In FY2024, 16.05 FTEs were added, bringing the total to 646.95.In FY2025, 3.25 FTEs
were added, bringing the total to 650.20. The City has averaged a 8.44% increase in its health
insurance premium rates over the previous eight years; however, is expecting a continued upward
trend for health insurance rates in FY2025 and FY2026. Employee contributions, deductibles, and
out-of-pocket maximums for health insurance increased in FY2024, and employee contributions
for health insurance also increased in FY2024, which should help mitigate the impact to the City's
overall premium increase. In FY2025 we are expecting to see increases as all expenditures are
seeing continued increases due to inflation.
In balancing the budget for the three-year period, the City attempts to mitigate the growth of costs
while continuing to provide high quality services by identifying ways to provide services more
efficiently, reviewing and updating existing revenue sources to meet strategic goals, strategically
funding new programming and economic development to ensure strong property value growth,
providing for necessary improvements to existing infrastructure, and upholding fiscal integrity by
maintaining adequate cash reserves.
10
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of Iowa
City, Iowa for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023.
The Certificate is the highest form of recognition for excellence in state and local financial reporting.
In order to be awarded the Certificate, a governmental unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report, whose contents conform to program
standards. The Annual Comprehensive Financial Report must satisfy both accounting principles
generally accepted in the United States of America and applicable legal requirements.
The Certificate is valid for a period of one year only. The City has received the Certificate for the
last thirty-seven consecutive years. I believe our current report continues to conform to the Certificate
requirements and I will submit it to GFOA to determine its eligibility for another certificate.
In addition, the City received the GFOA's Award for Distinguished Budget Presentation for its annual
appropriated budget beginning July 1, 2024. In order to qualify for the Distinguished Budget
Presentation Award, the City's budget document was judged to be proficient or outstanding in several
categories including policy documentation, financial planning, and organization. This is the twelfth
consecutive year the City has received this award.
Responsibility and Acknowledgments
The Department of Finance prepared the Annual Comprehensive Financial Report of the City of
Iowa City, Iowa for the fiscal year ended June 30, 2024. The City Council, as required by law, is
responsible for the complete and accurate preparation of the City's Annual Comprehensive
Financial Report. I believe that the information presented is accurate in all material respects and
that this report fairly presents the financial position and results of operations of the various funds
of the City.
The preparation of this report on a timely basis could not have been accomplished without the efficient
and dedicated services of the entire staff of the City's Finance Department. I would like to express
my appreciation to all members of the department who assisted and contributed to its preparation. I
want to especially recognize the contributions of the Assistant Finance Director, Jacklyn Fleagle,
Accounting Coordinator, Mark Messer, Senior Accountants, TaraLynne Werthmann and Riley Davis
and Budget Management Analyst, Angie Ogden.
Also, I thank the Mayor, members of the City Council and the City Manager for their interest and
support in planning and conducting the financial operations of the City in a dedicated, responsible,
and progressive manner.
Respectfully submitted,
Nicole Davies
Finance Director
11
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Iowa City
Iowa
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
im
City of Iowa City
Organization Chart
AIRPORT
COMMISSION
Airport
• Airport Operations
CITY ATTORNEY
ltc
Attorney
ity Attorney
OINTEDA
& Divisions
LIBRARY
CITY MANAGER
CITY CLERK
BOARD
City Manager
City Clerk
Library
• City Manager
• City Clerk
• Library Operations
• Communications Office
• Library Development
• Human Resources
Office
• Human Rights
• Economic Development
• Climate Action &
Outreach
......................................
Finance
• Administration
• Accounting
• Purchasing
• Revenue
• Risk Management
• Information Technology Services
Neighborhood &
Development Services
• Administration
• Development Services
• Neighborhood Services
• Metropolitan Planning Organization
of Johnson County
Parks & Recreation
• Administration
• Recreation
• Park Maintenance
• Cemetery
• Government Buildings
:....................................:
Senior Center
• Senior Center Operations
.....................................
......................................
Fire
• Administration
• Emergency Operations
• Fire Prevention
• Training
Police
: • Administration
• Support Services
• Field Operations
......................................
Public Works
• Administration
• Engineering
• Streets
• Wastewater
• Water
• Equipment
• Resource Management
Transportation Services
• Administration
• Parking
• Public Transportation
......................................
13
City of Iowa City, Iowa
Mayor
Council Member and Mayor Pro Tem
Council Member
Council Member
Council Member
Council Member
Council Member
City Manager
City Clerk
City Attorney
Listing of City Officials
June 30, 2024
Elected Officials
Bruce Teague
Mazahir Salih
Megan Alter
Josh Moe
Shawn Harmsen
Laura Bergus
Andrew Dunn
Appointed Officials
Geoff Fruin
Kellie Fruehling
Eric Goers
Department Directors
Deputy City Manager
Assistant City Manager
Director of Neighborhood Development Services
Library Director
Director of Public Works
Director of Transportation Services
Senior Center Coordinator
Fire Chief
Parks and Recreation Director
Director of Finance
Chief of Police
Chris O'Brien
Kirk Lehmann
Tracy Hightshoe
Elsworth Carman
Ron Knoche
Darian Nagle Gamm
LaTasha DeLoach
Scott Lyon
Juli Seydell Johnson
Nicole Davies
Dustin Liston
Term Expires
January 2, 2026
January 3, 2028
January 2, 2026
January 3, 2028
January 2, 2026
January 3, 2028
January 3, 2028
Date of Hire
November 28, 2011
July 10, 2000
September 7, 2005
November 12, 2024
February 01, 2018
August 27, 2001
January 2, 2019
April28, 1999
May 21, 2008
July 31, 2018
April 4, 2022
January 4, 2016
August 4, 2014
January 11, 2021
14
Financial
Section
Tabs
Bahnsack & Fremmelt LLP
Gertifiod Public Accountants
Independent Auditor's Report
To the Honorable Mayor
and Members of City Council
City of Iowa City, Iowa
Iowa City, Iowa
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, business -type activities, each
major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa (City) as of and
for the year ended June 30, 2024, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, business -type activities, each
major fund and the aggregate remaining fund information of the City, as of June 30, 2024, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GARS) and the standards applicable to the financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
W
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists_ The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgement and maintain professional skepticism throughout the audit_
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control -related
matters that we identified during the audit_
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information; schedule of changes in the City's total OPEB
liability and related ratios, schedules of the City's proportionate share of the net pension liabilities for
pension retirement systems, and schedules of the City's contributions for pension retirement systems, on
pages 19-29 and 82-97 be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
iV
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The supplementary information, as listed on the table of
contents and the Schedule of Expenditures of Federal Awards required by Title 2, U.S. Code of Federal
Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for
Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the supplementary information and
Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the
basic financial statements taken as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditor's report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 3,
2024, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters_ The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
City's internal control over financial reporting and compliance.
r
Moline, Illinois
December 3, 2024
17
(This page left blank intentionally.)
18
Management's Discussion and Analysis
As management of the City of Iowa City, we present this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2024. This narrative is intended to be used in conjunction
with additional information that is included in the letter of transmittal, which can be found on pages 3 — 11 of
this report.
Financial Highlights
• The assets and deferred outflows of resources of the City of Iowa City exceeded its liabilities and deferred
inflows of resources at the close of the fiscal year ending June 30, 2024 by $801,843,000 (net position). Of
this amount, $181,797,000 (unrestricted net position) may be used to meet the government's ongoing
obligations to its citizens and creditors.
• The City's total net position increased by $35,520,000 during the fiscal year. Governmental activities
increased by $23,377,000 and business -type activities increased by $12,143,000.
• At the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $135,558,000, an increase of $12,274,000 in comparison with the prior year. Of this total
amount, approximately $46,146,000 or 34.0% is unassigned and available for spending at the City's
discretion.
• At the end of the current fiscal year, the City's unassigned fund balance for the General Fund was
$46,149,000 or 74.5% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements are comprised of three components: 1) government -wide financial statements,
2) fund financial statements; and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government -wide Financial Statements: The government -wide financial statements are designed to provide
readers with a broad overview of the City's finances in a manner similar to a private -sector business.
The statement ofnetposition presents information on all of the City's assets and deferred outflows of resources,
liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business -type
activities). The governmental activities of the City include Public Safety, Public Works (roads and traffic
controls), Culture and Recreation, Community and Economic Development, General Government, and Interest
on long-term debt. The business -type activities of the City include Airport, Housing Authority, Parking,
Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water.
The government -wide financial statements may be found on pages 30 — 33 of this report.
19
Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental Funds: Governmental funds are used to account for essentially the same function reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of
spendable resources, as well as on balances ofspendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financing requirements and is typically the
basis that is used in developing the next annual budget.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison.
The City has six major governmental funds: General Fund, Other Shared Revenue and Grants Fund, Employee
Benefits Fund, Other Construction Fund, Bridge, Street and Traffic Control Construction Fund, and Debt
Service Fund. Information is presented separately in the governmental funds balance sheet and in the
governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds.
Data from all other non -major governmental funds is combined into a single aggregated presentation and are
referenced under a single column as "Other Governmental Funds". Individual fund data on each of these non -
major governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget
comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate
compliance with the adopted budget.
The basic governmental funds financial statements can be found on pages 34 — 37 of this report.
Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial statements.
The City uses enterprise funds to account for its Airport, Housing Authority, Parking, Sanitation, Stormwater
Collection, Transit, Wastewater Treatment, and Water activities. Internal Service funds are an accounting
device used to accumulate and allocate costs internally among the City's various functions. The City has four
Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology.
Because these services predominantly benefit governmental rather than business -type functions, they have been
included within governmental activities in the government -wide financial statements.
Proprietary funds financial statements provide the same type of information as the government -wide financial
statements, only in more detail. Transit, Wastewater Treatment, Water, Sanitation, Stormwater and Housing
Authority are considered to be major funds and are reported individually throughout the report. The other two
non -major enterprise funds are grouped together for reporting purposes and listed under a single heading "Other
Enterprise Funds". Detailed information for each of the non -major funds is provided in the combining
statements on pages 103 — 106. Individual fund data for the Internal Service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 38 — 40 of this report.
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not available to support the City's own programs and therefore are not
reflected in the government -wide financial statements. The City has one fiduciary fund: Project Green, which
is maintained as a custodial fund.
20
The basic fiduciary funds financial statements can be found on pages 41 - 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 - 80 of this report.
Other Information: The combining statements referred to in the above paragraphs in connection with non -
major governmental funds and internal service funds are presented immediately following the notes.
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In
the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $801,843,000 at the close of the fiscal year ended June 30, 2024.
By far, the largest portion of the City's net position reflect its investment in capital assets (e.g., land, building,
machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to
acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens;
consequently, these assets are not available for future spending. Although the City's investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Iowa City's Net Position
June 30, 2024
(amounts expressed in thousands)
Governmental
Business -type
activities
activities
Total
2024
2023
2024
2023
2024
2023
Current and other assets
$ 246,367 $
238,577
$ 149,469 $
141,380
$ 395,836 $
379,957
Capital assets
290262
284,995
337,574
331,579
627,836
616,574
Total assets
536,629
523,572
487,043
472,959
1,023,672
996,531
Deferred outflows ofresources
13,060
8,319
3,030
1,909
16,090
10228
Long-term liabilities outstanding
110,977
105,954
28,691
25,319
139,668
131273
Current and other liabilities
15,343
26,717
8,076
7,717
23,419
34,434
Total liabilities
126,320
132,671
36,767
33,036
163,087
165,707
Deferred inflows of resources
71,755
70,983
3,077
3,746
74,832
74,729
Net position:
Net investment in capital assets
238,351
235218
332,087
325,391
570,438
560,609
Restricted
44,316
40,048
5292
7,959
49,608
48,007
Unrestricted
68,947
52,971
112,850
104,736
181,797
157,707
Total net position
$ 351,614 $
328,237
$ 450229 $
438,086
$ 801,843 $
766,323
Q
A portion of the City's net position, $49,608,000 or 6.2%, represents resources that are subject to external
restrictions on how they may be used. The remaining balance of the unrestricted net position, $181,797,000 or
22.7%, may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of
the fiscal year ended June 30, 2024, the City is able to report positive balances in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business -type
activities.
The following is a more detailed review of FY24's operation.
Governmental Activities: Governmental activities increased the City's net position by $23,377,000. The
increase in net position of governmental activities is primarily from an increase in earnings on investments and
conservative budgeting.
The total revenues for governmental activities for FY24 were $122,505,000. Governmental activities are
primarily funded through taxes, $74,352,000 or 60.7%, and grants and contributions, $26,736,000 or 21.8%.
Taxes decreased from the prior year by $258,000, which is relatively flat year over year. Grants and
contributions increased from prior year by $6,829,000 due mainly to additional funding recognized from the
American Rescue Plan Act in FY24.
Expenses for governmental activities totaled $88,954,000. Governmental activities are tracked by function
including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and
General Government. In FY24, Public Safety accounted for the highest portion of governmental expenses,
$29,255,000 or 32.9%, and increased over the prior year due to an increase in pension expense due to a increase
in the net pension liability. Public Works expenses of $16,733,000 or 18.8% made up another large portion of
the governmental expenses and had a decrease in expenses from the prior year. Culture and Recreation expenses
of $18,664,000 or 21.0% made up the second highest portion of governmental expenses and had a slight increase
in expenses from the prior year.
Business -type Activities: Business -type activities increased the City's total net position by $12,143,000. The
increase in net position was primarily from the Water and Stormwater funds. Water generated operating income
of $608,000, had transfers in of $3,467,000, and received contributions of infrastructure of $266,000 from
capital projects funds.
Revenues for business -type activities totaled $72,513,000. The primary revenue source for business -type
activities is charges for services, $45,608,000 or 62.9%. In addition for FY24, the City's business type -activities
had a significant portion, $20,424,000 or 28.2%, of their revenues from grants and contributions used to help
fund operation and capital projects for business -type activities.
The total expenses for business -type activities in FY24 were $70,544,000. Housing Authority represented the
highest portion of business -type activities, $13,277,000 or 18.8%, with Wastewater, $12,843,000 or 18.2%,
Sanitation, $12,907,000 or 18.3% Water, $11,022,000 or 15.6%, and Transit, $10,604,000 or 15.0%, making
up the remainder of the majority of business -type activities expenses.
M
City of Iowa City's Changes in Net Position
(amounts expressed in thousands)
Governmental Business -type
activities activities Total
2024
2023
2024
2023
2024
2023
Revenues:
Program Revenues:
Charges for services
$ 8,202
$ 9,874
$ 45,608
$ 44,203
$ 53,810
$ 54,077
Operating grants and contributions
23,568
15,550
19,015
16,741
42,583
32,291
Capital grants and contributions
1,493
3,113
1,409
1,632
2,902
4,745
General Revenues:
Property taxes
70,578
70,824
-
-
70,578
70,824
Other taxes
3,774
3,786
3,774
3,786
Grants and contributions not restricted
to speck purposes
1,675
1,244
-
-
1,675
1,244
Earnings (loss) on investments
8,894
4,325
5,253
2,605
14,147
6,930
Gain on disposal of capital assets
418
1,205
23
1
441
1,206
Other
3,903
3,984
1,205
1,083
5,108
5,067
Total revenues
122,505
113,905
72,513
66,265
195,018
180,170
Expenses:
Public safety
29,255
26,413
-
-
29,255
26,413
Public works
16,733
19,051
16,733
19,051
Culture and recreation
18,664
18,135
18,664
18,135
Community and economic development
12,269
13,570
12,269
13,570
General government
10,415
8,774
10,415
8,774
Interest on long-term debt
1,618
1,622
-
-
1,618
1,622
Wastewater treatment
-
-
12,843
12,869
12,843
12,869
Water
11,022
9,672
11,022
9,672
Sanitation
12,907
10,282
12,907
10,282
Housing authority
13,277
12,067
13,277
12,067
Parking
6,067
6,436
6,067
6,436
Airport
1,677
1,433
1,677
1,433
Stormwater
2,147
2,393
2,147
2,393
Transit
-
-
10,604
9,276
10,604
9,276
Total expenses
88,954
87,565
70,544
64,428
159,498
151,993
Change in net position before transfers
33,551
26,340
1,969
1,837
35,520
28,177
Transfers
(10,174)
(4,876)
10,174
4,876
-
-
Change in net position
23,377
21,464
12,143
6,713
35,520
28,177
Net position beginning of year, as restated
328,237
306,773
438,086
431,373
766,323
738,146
Net position end of year
$ 351,614
$ 328,237
$ 450,229
$ 438,086
$ 801,843
$ 766,323
The graphs on the following pages represent a breakdown of revenue by source and expenses by program area
for governmental and business -type activities.
23
U11at
Coutt
2
Governmental Activities
FY2024 Revenue
by Source
Misc. Charges for
Other Taxes Other services
3% 11% 7%
Business -Type Activities
FY2024 Revenue
by Source
Misc. Other
9%
�_I
Grants and
Contributions
22%
24
32,000
30,000
28,000
26,000
24,000
22,000
20,000
18,000
io
16,000
A 14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
14,000
12,000
10,000
41) 8,000
A 6,000
4,000
2,000
0
Public
Governmental Activities
FY2024 Expenses
by Program Area
(amounts expressed in thousands)
Program Area
Business -Type Activities
FY2024 Expenses
by Program Area
(amounts expressed in thousands)
Housing
►ryaslewxler
Treatment Sanitation
Water
Parking
Program Area
Transit
Stormwater
W
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds: The financial reporting focus of the City's governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information may be/is useful in
assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the
extent to which the government honors constraints on the specific purposes for which amounts in those funds
can be spent.
As of the fiscal year ended June 30, 2024, the City's governmental funds reported combined ending fund
balances of $135,558,000, an increase of $12,274,000 in comparison with the prior year. Of this total amount,
$46,146 ,000 constitutes unassigned fund balance, which is available to use as working capital for the General
Fund since property tax revenues are received only twice a year and the remainder is available to meet the future
needs of the City. The remainder of the fund balance is not available for new spending because of constraints
imposed externally by creditors, grantors, contributors, or laws or regulations of other governments or
constraints imposed internally on the specific purposes for which these amounts can be spent. The restricted
fund balance of $64,297,000 or 47.4% contains external restraints on its use. The assigned fund balances of
$18,437,000 or 13.6% have been identified by the City to be used for specific purposes. The nonspendable fund
balance is $6,678,000 or 4.9%, which the City is contractually required to maintain intact or cannot be spent
because it is in a nonspendable format, such as inventories.
The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2024, the
unassigned fund balance of the General Fund was $46,149,000 while General Fund's total fund balance was
$73,445,000. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total fund expenditures. Unassigned fund balance represents 74.5% of total
General Fund expenditures of $61,923,000, while total fund balance represents 118.6% of that same amount.
During the current fiscal year, the fund balance of the City's General Fund increased by $11,409,000. This is
due to transfers in from other funds.
The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $16,708,000, an increase of
$1,346,000. This fund accounts for transactions relating to the acquisition or construction of major streets,
bridges, and traffic control facilities.
The fund balance in the Other Construction Fund was $12,049,000, a decrease of $1,879,000. This fund
accounts for the construction or replacement of other governmental general capital assets, such as administrative
buildings, with various funding sources, including general obligation bonds, intergovernmental revenues, and
contributions. This decrease is mainly due to the timing of bond sales.
The ending fund balance of the Debt Service Fund was $7,608,000, an increase of $182,000, all of which is
reserved for the payment of debt service (i.e. payment of general obligation principal and interest).
The ending fund balance of the Employee Benefits Fund was $3,577,000, a decrease of $711,000.
The ending fund balance of the Other Shared Revenue and Grants Fund was $17,356,000, an increase of
$1,221,000 due to the recognition of ARPA funds.
41-
Proprietary Funds: The City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
The ending net position of the enterprise funds was $424,000,000, an increase in net position of $10,411,000.
This was primarily due to capital contributions of federal and state grants to fund capital improvement projects
and transfers of business -type capital assets from governmental capital project funds. Of the enterprise funds'
net position, $332,087,000 is net investment in capital assets. Unrestricted net position totaled $86,621,000, an
increase of $6,382,000 compared to the previous year.
The Internal Service funds showed net position totaling $66,494,000 as of June 30, 2024, an increase of
$6,898,000 primarily due to operating income in the Equipment Maintenance and Loss Reserve Funds to build
up reserves for future expenses and capital outlay.
Budgetary Highlights
The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine
functional areas as required by state statute, not by fund or fund type.
The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues
by $11,484,000 or 6.5% to a total of $188,728,000 and the expenditure budget by $91,187,000 or 41.4% to a
total of $311,295,000. These increases were due primarily to capital projects in governmental and business -
type funds because of timing of completion of projects.
Capital Assets and Debt Administration
Capital Assets: The City's investment in capital assets for its governmental and business -type activities as of
June 30, 2024 amounts to $627,836,000, net of accumulated depreciation. This investment in capital assets,
including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater
and water systems, and other infrastructure represents the value of resources utilized to provide services to its
citizens. The City's investment in capital assets for the fiscal year ended June 30, 2024 increased by $5,267,000
for governmental activities compared to the prior year and increased by $5,994,000 for business -type activities
from the prior year.
The following table reflects the $627,836,000 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
2024
2023
2024
2023
2024
2023
Land
$ 32,614 $
32,542
$ 30,957 $
30,957
$ 63,571 $
63,499
Buildings
33,680
34,397
53,155
55,970
86,835
90,367
Improvements other than
buildings
2,971
3,097
3,002
3,099
5,973
6,196
Machinery and equipment
35,077
35,942
16,807
15,505
51,884
51,447
IT subsciptions
337
370
397
349.00
734
719
Infrastructure
159,472
158,841
208,749
210,647
368,221
369,488
Construction in progress
26,111
19,806
24,507
15,053
50,618
34,859
Total
$ 290,262 $
284,995
$ 337,574 $
331,580
$ 627,836 $
616,575
27
Major capital asset events during the current fiscal year included the following:
Three large construction projects were completed during FY 24. The first is the Influent Rake & Screen
Replacement. This project includes replacing an old asset with new influent rake and screen system.
This project had construction in progress balance at the beginning of the year of $2,042,000 and current
year expenditures of $1,000. The total cost of the project that was capitalized was $2,044,000. The
project was funded through Wastewater operating funds. Another project is the Second Avenue Bridge
Replacement. This project consisted of replacing a bridge on Second Avenue. It had construction in
progress balance at the beginning of the year of $1,377,000, and current year expenditures of $15,000.
The total cost of the project that was capitalized was $1,392,000 and it was primarily funded through
federal grants and transfers in of Road Use Tax dollars. The third project, Fairchild Street
Reconstruction, reconstructed several blocks along Fairchild Street. This project was capitalized at
$1,790,000 with current year expenses of $1,140,000 and a beginning construction in progress balance
of $656,000.
Additional information on the City's capital assets can 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 $64,785,000.
Of this amount, $52,980,000 comprises debt backed by the full faith and credit of the City. $538,000 or 1.0%
of the general obligation bonds is debt that will be paid with Tax Increment Financing revenues. $11,805,000
represents revenue bonds secured solely by specific revenue sources.
The City issued $10,140,000 of General Obligation bonds during FY24. This increase in debt was offset by
the retirement of debt for a net increase of City's total bonded debt by $65,000.
City of Iowa City's Outstanding Debt
General Obligation and Revenue Bonds
(amounts expressed in thousands)
Governmental Business -type
Activities Activities
2024
General obligation bonds $ 52,980
Revenue bonds 9,925
Total $ 62,905
2023 2024 2023
$ 52,915 $ - $ -
10,880 1,880 3,625
$ 63,795 $ 1,880 $ 3,625
Total
2024
$ 52,980
11,805
$ 64,785
2023
$ 52,915
14,505
$ 67,420
The City continues to have the same excellent bond rating on its General Obligation bonds that it has had
for the past several years. This rating is given to those bonds judged to be of the best quality and carrying
the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. as of
June 30, 2024 were as follows:
General obligation bonds
Wastewater treatment revenue bonds
Water revenue bonds
Aaa
Aa2
Aa2
The City continues to operate well under the State debt capacity debt limitations. State statute limits the
amount of debt outstanding to 5% of the assessed value of all taxable property in Iowa City. Debt subject to
the debt limit includes general obligation debt and revenue bonds issued pursuant to Iowa Code Chapter 403
(tax increment). The current debt limitation for the City is $368,416,000. With outstanding debt applicable
to this limit of $93,930,000 we are utilizing 25.5% of this limit.
More detailed information on debt administration is provided in Note 6 of the financial statements.
28
Economic Factors and Next Year's Budget and Rates
The City expects continued constraints by the State's property tax formula. The State passed property tax
reform, which will negatively affect the City's general operating funds. Without the potential for new
revenue sources, like those mentioned above, the City's opportunities for new initiatives are limited. The
Council has established a budget where expenditures exceed revenues by $11,739,000 in the General Fund
for FY25 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed
valuation for FY25 is provided below:
General Levy $ 8.402
Debt Service Levy 2.577
Employee Benefits Levy 3.344
Transit Levy 0.950
Liability Insurance Levy 0.360
Total City Levy $ 15.633
Requests for Information
This report is designed to provide a general overview of the City of Iowa City's finances for all of those
with an interest in the government's finances. Questions concerning any of the information provided in
this report, or requests for additional financial information should be addressed to City of Iowa City,
Finance Department, 410 East Washington Street, Iowa City, IA, 52240.
29
City of Iowa City, Iowa
Statement of Net Position
June 30, 2024
(amounts expressed in thousands)
Assets
Equity in pooled cash and investments
Receivables:
Property tax
Accounts and unbilled usage
Interest
Notes
Internal balances
Lease receivable
Due from other governments
Inventories
Assets held for resale
Restricted assets:
Equity in pooled cash and investments
Capital assets:
Land and construction in progress
Other capital assets (net of accum. depreciation/amortization)
Total assets
Deferred Outflows of Resources
Pension related deferred outflows
OPEB related deferred outflows
Total deferred outflows of resources
Liabilities
Accounts payable
Contracts payable
Accrued liabilities
Interest payable
Deposits
Advances from grantors
Due to other governments
Unearned revenue
Noncurrent liabilities:
Due within one year:
Employee vested benefits
Subscription liability
Bonds payable
Due in more than one year:
Employee vested benefits
Subscription liability
Capital loan notes payable
Net pension liability
Other post employment benefits liability
Notes payable
Bonds payable
Landfill closure/post-closure liability
Total liabilities
Governmental
Business -type
Activities
Activities
Total
$ 155,713
$ 84,484
$ 240,197
69,847
-
69,847
595
4,494
5,089
1,148
771
1,919
5,237
307
5,544
(28,722)
28,722
-
184
2,267
2,451
5,380
5,644
11,024
944
921
1,865
6,335
-
6,335
29,706
21,859
51,565
58,725
55,463
114,188
231,537
282,111
513,648
536,629
487,043
1,023,672
11,734
2,483
14,217
1,326
547
1,873
13,060
3,030
16,090
3,081
2,212
5,293
3,998
2,604
6,602
3,521
329
3,850
189
20
209
1,421
2,757
4,178
3,091
-
3,091
42
74
116
-
80
80
1,487
551
2,038
145
57
202
12,007
1,360
13,367
1,139
331
1,470
110
95
205
-
788
788
34,767
6,303
41,070
6,736
2,788
9,524
211
-
211
54,375
560
54,935
-
15,858
15,858
$ 126,320
$ 36,767
$ 163,087
30
(continued)
Deferred Inflows of Resources
Pension related deferred inflows
OPEB related deferred inflows
Lease related deferred inflows
Deferred amount on refunding
Succeeding year property taxes
Total deferred inflows of resources
Net Position
Net investment in capital assets
Restricted for or by:
Employee benefits
Capital projects:
Expendable
Nonexpendable
Debt service
Police
Other purposes
Expendable
Nonexpendable
Bond ordinance
State statute
Future improvements
Grant agreement
Unrestricted
Total net position
City of Iowa City, Iowa
Statement of Net Position (continued)
June 30, 2024
(amounts expressed in thousands)
Governmental Business -type
Activities Activities Total
$ 1,036 $ 77 $ 1,113
1,715 710 2,425
184 2,267 2,451
- 23 23
68,820 - 68,820
238,351
332,087
570,438
3,953
-
3,953
18,750
-
18,750
274
-
274
7,419
-
7,419
237
-
237
10,363
-
10,363
69
-
69
-
21769
2,769
-
710
710
-
404
404
3,251
1,409
4,660
68,947
112,850
181,797
$ 351,614 $
450,229 $
801,843
The notes to the financial statements are an integral part �)T this statement.
W
City of Iowa City, Iowa
Statement of Activities
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Net (Expense) Revenue and
Program Revenues
Changes in Net Position
Operating
Capital
Charges
Grants and
Grants and
Governmental
Business -type
Functions/Programs:
Expenses
for Services
Contributions
Contributions
Activities
Activities
Total
Governmental activities:
Public safety
$ 29,252
$ 5,331
$ 301
$ -
$ (23,620)
$ $
(23,620)
Public works
16,733
349
10,581
1,473
(4,330)
(4,330)
Culture and recreation
18,664
701
67
-
(17,896)
(17,896)
Community and economic development
12269
20
12,649
20
420
420
General government
10,442
1,801
-
-
(8,641)
(8,641)
Interest on long -tern debt
1,624
-
-
-
(1,624)
(1,624)
Total governmental activities
88,984
8202
23,598
1,493
(55,691)
(55,691)
Business -type activities:
Wastewater treatment
12,843
12,795
-
360
312
312
Water
11,022
10,997
266
241
241
Sanitation
12,907
12,767
-
-
(140)
(140)
Housing authority
13,277
350
13,297
-
370
370
Parking
6,067
5,459
-
18
(590)
(590)
Airport
1,677
396
117
632
(532)
(532)
Stormwater
2,147
1,886
-
186
(75)
(75)
Transit
10,604
958
5,548
-
(4,098)
(4,098)
Total business -type activities
70,544
45,608
18,962
1,462
(4,512)
(4,512)
Total
$ 159,528
$ 53,810
$ 42,560
$ 2,955
(55,691)
(4,512)
(60203)
General revenues:
Property taxes, levied for general purposes
Hotel/motel tax
Gas and electric tax
Utility franchise tax
Grants and contributions not restricted to specific purposes
Earnings (loss) on investments
Gain on disposal of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Changes in net position
Net position beginning of year
Net position end of year
The notes to the financial statements are an totegral part of this statement.
70,578
70,578
2,043
2,043
748
748
983
983
1,675
-
1,675
8,894
5,253
14,147
418
23
441
3,903
1,205
5,108
(10,174)
10,174
-
79,068
16,655
95,723
23,377
12,143
35,520
328,237
438,086
766,323
$ 351,614 $
450,229 $
801,843
33
City of Iowa City, Iowa
Balance Sheet
Governmental Funds
June 30, 2024
(amounts expressed in thousands)
Special Revenue
Capital Projects
Bridge,
Other
Street, and
Shared
Traffic
Other
Revenue and
Employee
Other
Control
Debt
Governmental
General
Grants
Benefits
Construction
Construction
Service
Funds
Total
Assets
Equity in pooled cash and investments
$ 64,686 $
11,377 $
3,380
$ 6,754
$ 9,596
$ 7,269
$ 1,444
$ 104,506
Receivables:
Property tax
42,704
12
14,704
-
-
11,682
745
69,847
Accounts and unbilled usage
154
10
-
81
171
-
-
416
Interest
408
89
-
127
130
53
26
833
Notes
1,330
481
-
-
-
113
3,313
5,237
Due from other funds
211
-
-
-
-
-
-
211
Lease receivable
164
-
-
-
-
-
-
164
Advances to other funds
-
-
-
-
-
18
-
18
Due from other governments
2,618
874
390
136
1,182
-
163
5,363
Inventories
-
274
-
-
-
-
-
274
Assets held for resale
6,335
-
-
-
-
-
-
6,335
Restricted assets:
Equity in pooled cash and investments
3,433
7,339
9,304
9,630
29,706
Total assets
$ 122,043 $
20,456 $
18,474
$ 16,402
$ 20,709
$ 19,135
$ 5,691
$ 222,910
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities
Accounts payable
$ 1,774 $
349 $
2 $
87 $
267 $
-
$ 117 $
2,596
Contracts payable
-
-
-
997
3,001
-
-
3,998
Accrued liabilities
997
62
1
-
-
-
12
1,072
Due to other funds
-
-
-
-
-
-
85
85
Advances from other funds
-
18
-
2,619
-
-
-
2,637
Due to other governments
42
-
-
-
-
-
-
42
Liabilities payable from restricted assets:
Deposits
1,411
10
-
-
-
-
-
1,421
Advances from grantors
19
2,639
433
3,091
Total liabilities
4,243
3,078
3
4,136
3,268
214
14,942
Deferred Inflows of Resources
Unavailable revenues:
Succeeding year property taxes
42,127
-
14,504
-
-
11,527
662
68,820
Lease related deferred inflows
164
-
-
-
-
-
-
164
Grants
1
22
-
22
712
-
-
757
Other
2,063
390
195
21
2,669
Total deferred inflows of resources
44,355
22
14,894
217
733
11,527
662
72,410
Fund Balances
Nonspendable
6,404
274
-
-
-
-
-
6,678
Restricted
2,455
17,082
3,577
12,049
16,708
7,608
4,818
64,297
Assigned
18,437
-
-
-
-
-
-
18,437
Unassigned
46,149
(3)
46,146
Total fund balances
73,445
17,356
3,577
12,049
16,708
7,608
4,815
135,558
Total liabilities, deferred inflows
of resources and fund balances
$ 122,043 $
20,456 $
18,474 $
16,402 $
20,709 $
19,135
$ 5,691 $
222,910
The notes to the financial statements are an integral part of this statement
34
City of Iowa City, Iowa
Reconciliation of the Balance Sheet of the
Governmental Funds to the Statement of Net Position
June 30, 2024
(amounts expressed in thousands)
Total governmental fund balances
Amounts reported for governmental activities in the statement
of net position are different because:
Internal service funds are used by management to charge the costs
of certain activities to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net position.
Other long-term assets are not available to pay for current period
expenditures and therefore are unavailable in the funds:
Grants and other receivables - Earned but unavailable.
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in the funds.
Pension and OPEB related deferred outflows of resources and
deferred inflows of resources are not due and payable in the
current period and therefore are not reported in the funds.
Deferred outflows of resources
Deferred inflows of resources
Net pension liabilities are not due and payable in the
current period and therefore are not reported in the funds.
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds.
Accrued post employment benefit liabilities are not due and
payable in the current period and therefore are not reported
in the funds.
Subscription liabilities are not due and payable in the current
period and therefore are not reported in the funds.
Bonds payable are not due and payable in the current period
and therefore are not reported in the funds.
Notes payable are not due and payable in the current period
and therefore are not reported in the funds.
Accrued interest on bonds
Internal balance due to integration of internal service funds
Total net position of governmental activities
$ 135,558
66,494
3,426
272,035
$ 12,587
(2,656) 9,931
(33,728)
(2,487)
(6,408)
(196)
(66,382)
(211)
(189)
(26,229)
$ 351,614
The notes to the financial statements are an integral part of this statement.
Kli
City of Iowa City, Iowa
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current
Public safety
Public works
Culture and recreation
Community and economic development
General government
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Special Revenue Capital Projects
Bridge,
Other Street, and
Shared Traffic Other
Revenue and Employee Other Control Debt Governmental
General Grants Benefits Construction Construction Service Funds Total
$ 43,649 $
845 $
14,134 $
- $
- $
10,808 $
4,917 $
74,353
3,036
-
-
-
-
-
-
3,036
4,750
22,210
346
97
908
261
1,555
30,127
1,201
76
384
85
219
-
-
1,965
392
-
-
-
-
-
-
392
2,997
1,283
-
854
634
594
171
6,533
2,260
114
1
122
292
270
3,059
58,285
24,528
14,865
1,158
2,053
11,663
6,913
119,465
27,819 - 1,136 78 - - - 29,033
2,844 7,012 - 172 2,103 - - 12,131
15,888 - - 1,104 - - - 16,992
4,605 2,473 - 79 - - 5,056 12,213
8,921 485 604 62 - 36 - 10,108
95 - - - - 11,030 - 11,125
6 - - - - 2,156 - 2,162
1,835 295 4,335 7,650 14,115
62,013 10,265 1,740 5,830 9,753 13,222 5,056 107,879
Excess (deficiency) of revenues over
(under) expenditures
(3,728)
14,263
13,125
(4,672)
(7,700)
(1,559)
1,857
11,586
Other Financing Sources (Uses)
Issuance of debt
90
-
-
424
9,686
30
-
10,230
Sale of capital assets
211
-
-
-
-
-
-
211
Premiums on issuance of bonds
-
-
-
30
688
2
-
720
Transfers in
23,252
1,664
1
2,339
3,664
1,709
583
33,212
Transfers out
(8,416)
(14,706)
(13,837)
(4,992)
(1,734)
(43,685)
Total other financing sources and (uses)
15,137
(13,042)
(13,836)
2,793
9,046
1,741
(1,151)
688
Net change in fund balances 11,409 1,221 (711) (1,879) 1,346 182 706 12,274
Fund Balances, Beginning 62,036 16,135 4,288 13,928 15,362 7,426 4,109 123,294
Fund Balances, Ending $ 73,445 $ 17,356 $ 3,577 $ 12,049 $ 16,708 $ 7,608 $ 4,815 $ 135,558
The notes to the financial statements are an integral part of this statement.
W,
City of Iowa City, Iowa
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Net change in fund balances - total governmental funds $ 12,274
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures while governmental
activities report depreciation expense to allocate those expenditures over the
life of the asset. Capital outlays and contributed capital assets exceeded
depreciation expense in the current year as follows:
Expenditures for capital assets $ 13,305
New IT subscription asset, financed 90
Capital assets contributed 371
Depreciation/amortization expense (8,861) 4,905
Bond proceeds are reported as other financing sources in governmental funds
and thus contribute to the change in fund balance. In the statement of net
position, however, issuing debt increases long-term liabilities and does not affect
the statement of activities. Similarly, repayment of principal is an expenditure in
the governmental funds but reduces the liability in the statement of net position.
Debt issued
(10,230)
Premium on bonds issued
(720)
Subscription issued
(90)
Repayments of subscription liability
95
Repayments of debt
11,030
Amortization of premium
547 632
Because some revenues will not be collected for several months after the
City's year end, they are not considered available revenues in the governmental funds. (111)
Some expenses reported in the statement of activities do not require the
use of current financial resources and therefore are not reported as
expenditures in governmental funds:
Change in accrued compensated absences 23
Pension expense 1,064
Change in accrued post employment benefit liability (405)
Change in accrued interest on debt (9)
In the statement of activities, only the gain on the sale of the capital assets is
recognized, whereas in the governmental funds, the proceeds from the sale
increased financial resources. Thus, the change in net position differs from the
change in fund balance by the cost of the capital asset sold. (162)
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. 5,166
Change in net position of governmental activities $ 23,377
The notes to the financial statements are an integral part of this statement.
37
City of Iowa City, Iowa
Statement of Net Position
Proprietary Fonds
June 30, 2024
(amounts
expressed in thousands)
Governmental
Business -Type Activities
- Enterprise Funds
Activities -
Other
Internal
Wastewater
Housing
Enterprise
Service
Transit
Treatment
Water
Sanitation
Stonnwater
Authority
Funds
Total
Funds
Assets
Current assets:
Equity in pooled cash and investments
$ 11,766
$ 27,494
$ 15,350
$ 16,415
$ 3,675
$ 5,759
$ 4,025
$ 84,484
$ 51,207
Receivables (net of allowance for uncollectibles):
Accounts and unbilled usage
38
1,614
1,306
1,200
209
52
75
4,494
179
Interest
92
206
125
208
25
82
33
771
315
Notes
-
-
-
-
-
307
-
307
-
Lease
132
-
-
17
-
-
127
276
20
Due from other governments
4,744
-
-
25
-
99
776
5,644
17
Inventories
559
362
921
670
Total current assets
17,331
29,314
17,143
17,865
3,909
6,299
5,036
96,897
52,408
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments
6
2
3,960
14,586
-
2,992
313
21,859
-
Advances to other funds
-
-
-
3,629
-
-
-
3,629
Lone receivable
1,222
-
-
234
-
-
535
1,991
-
Capital assets:
Land
2,630
1,399
6,296
2,264
2,264
620
15,484
30,957
685
Buildings
15,399
36,801
24,019
5,402
-
7,427
48,122
137,170
1,553
Improvements other than buildings
-
7,802
2,721
587
-
34
811
11,955
50
Machinery and equipment
15,647
15,056
11,844
302
27
72
998
43,946
28,728
Infrastructure
431
165,300
76,922
20,123
76,420
-
18,687
357,883
3,634
Accumulated depreciation
(17,042)
(106,768)
(52,186)
(21,625)
(23,370)
(5,750)
(42,499)
(269,240)
(17,870)
IT subscriptions
128
-
78
-
-
-
349
555
651
Accumulated amortization
(16)
-
(26)
-
-
-
(116)
(158)
(534)
Construction in progress
452
6,788
5,865
6,066
4,427
34
874
24,506
1,330
Total noncurrent assets
18,857
126,380
79,493
31,568
59,768
5,429
43,558
365,053
18,227
Total assets
36,188
155,694
96,636
49,433
63,677
11,728
48,594
461,950
70,635
Deferred Outflows of Resources
Pension related deferred outflows
701
365
431
513
39
160
274
2,483
407
OPEB related deferred outflows
161
70
99
105
5
43
64
547
66
Total deferred outflows ofresources
862
435
530
618
44
203
338
3,030
473
Liabilities
Current liabilities:
Accounts payable
1,182
238
269
203
115
59
146
2,212
485
Contracts payable
1
1,087
322
378
146
-
670
2,604
-
Accrued liabilities
87
47
60
68
5
25
37
329
2,449
Employee vested benefits
181
73
78
111
6
21
81
551
79
Subscription liability
31
-
26
-
-
-
-
57
59
Due to other funds
-
-
-
-
-
-
126
126
-
Due to other governments
-
1
66
6
-
1
-
74
-
Unearned revenue
-
-
-
-
-
80
-
80
-
Interest payable
-
-
20
-
-
-
-
20
-
Bonded debt payable (net ofunamortized
premium and discounts)
1,360
1,360
Total current liabilities
1,482
1,446
2,201
766
272
186
1,060
7,413
3,072
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits
4
-
1,157
10
-
1,577
9
2,757
-
Advances from other funds
-
-
-
-
-
-
1,010
1,010
-
Employee vested benefits
89
46
47
81
4
16
48
331
60
Subscription liability
64
-
31
-
-
-
-
95
-
Capital loan notes payable
-
788
-
-
-
-
-
788
-
Bonded debt payable (net ofunamortized
premium and discounts)
-
-
560
-
-
-
-
560
-
Not pension liability
1,803
944
1,070
1,308
101
383
694
6,303
1,039
Other post employment benefits liability
820
355
506
533
27
219
328
2,788
328
Landfill closure/postclosure liability
15,858
15,858
Total noncurrent liabilities
2,780
2,133
3,371
17,790
132
2,195
2,089
30,490
1,427
Total liabilities
4,262
3,579
5,572
18,556
404
2,381
3,149
37,903
4,499
Deferred Inflows of Resources
Lease related deferred inflows
1,355
-
-
250
-
-
662
2,267
20
Pension related deferred inflows
22
11
13
16
1
5
9
77
12
OPEB related deferred inflows
209
90
129
136
7
56
83
710
83
Deferred amount on refunding
23
23
Total deferred inflow of resources
1,586
101
165
402
8
61
754
3,077
115
Net Position
Net investment in capital assets
17,533
124,503
73,211
12,741
59,622
2,437
42,040
332,087
18,168
Restricted by bond ordinance
-
-
2,769
-
-
-
-
2,769
-
Restricted by state statute
-
-
-
710
-
-
-
710
-
Restricted for future improvements
-
-
-
-
-
-
404
404
-
Restricted by grant agreement
-
-
-
-
-
1,409
-
1,409
-
Unrestricted
13,669
27,946
15,449
17,642
3,687
5,643
2,585
86,621
48,326
Total not position
$ 31,202
$ 152,449
$ 91,429
$ 31,093
$ 63,309
$ 9,489
$ 45,029
$ 424,000
S 66,494
Adjustment to reflect the consolidation
of internal service fund
activities
related to enterprise funds.
26,229
Net position ofbusiness-Type activities
$ 450,229
The notes to the financial statements are an integral part of this statement.
38
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Commodities
Services and charges
Depreciation & Amortization
Total operating expenses
Operating income (loss)
Nonoperating Revenues (Expenses):
Gain (loss) on disposal of capital assets
Operating grants
Lease revenue
Interest income
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before capital contributions
and transfers
Capital contributions
Transfers in
Transfers out
Change in net position
City of Iowa City, Iowa
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Governmental
Business -type Activities - Enterprise Funds
Activities -
Other
Internal
Wastewater
Housing
Enterprise
Service
Transit
Treatment Water Sanitation Stormwater
Authority
Funds
Total
Funds
$ 832
$ 12,795 $10,997 $12,751 $
1,886
$ 350
$ 5,740
$45,351
$ 25,880
67
112 834 83
17
47
45
1,205
-
899
12,907 11,831 12,834
1,903
397
5,785
46,556
25,880
5,125
3,558 4,031 4,330
349
1,245
2,546
21,184
2,872
1,521
1,768 2,159 303
29
101
600
6,481
3,008
2,971
3,368 2,706 8,546
251
11,737
2,308
31,887
13,537
9,617
8,694 8,896 13,179
629
13,083
5,454
59,552
19,417
1,165
4,324 2,327 592
1,519
233
2,364
12,524
2,650
10,782
13,018 11,223 13,771
2,148
13,316
7,818
72,076
22,067
(9,883)
(111) 608 (937)
(245)
(12,919)
(2,033)
(25,520)
3,813
-
2 21 -
-
-
-
23
207
5,548
- - -
13,297
117
18,962
-
126
- - 16
-
115
257
20
718
1,246 997 1,574
138
351
229
5,253
2,362
(3)
6,392
1,248 1,018 1,590
138
13,648
461
24,495
2,586
(3,491) 1,137 1,626 653 (107) 729 (1,572) (1,025)
- 360 266 - 186 - 650 1,462
4,253 328 3,467 93 1,745 30 278 10,194
- (47) - (28) (322 (38) (75) (220)
762 1,778 5,359 718 1,792 721 (719) 10,411
Net Position, Beginning 30,440 150,671 86,070 30,375 61,517 8,768 45,748
Net Position, Ending $ 31,202 $ 152,449 $91,429 $31,093 $ 63,309 $ 9,489 $ 45,029
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds 1,732
Change in net position of business -type activities $12,143
The notes to the financial statements are an integral part of this statement.
6,399
499
6,898
59,596
$ 66,494
39
City of Iowa City, Iowa
Statement of Cash Flows
proprietary Funds
For the Year Ended June 30,
2024
(amounts expressed in thousands)
Governmental
Business -type Activities - Enterprise Funds
Activities -
oa,e
Internal
Wastewater
Housing
Enterprise
Service
Transit
Treatment
Water
Sanitation
Stormwater
Authority
Finds
Total
Finds
Cash Flows From Operating Activities
Receipts from customers and users
$ 973
$ 12,822
$11,835
$ 12,657
$ 1,881
$ 681
$ 5,779
$ 46,628
$ -
Receipts from users
-
-
-
-
-
-
-
-
25,893
Payments to suppliers
(4,655)
(5,214)
(4,918)
(5,979)
(176)
(11,834)
(3,583)
(36,359)
(17,355)
Payments to employees
(5,152)
(3,633)
4,189
(4,424)
363
1,249
2,496
21,506
2,979
Net cash flows from (used for) operating activities
(8,834)
3,975
2,728
2,254
1,342
12,402
300
11,237
5,559
Cash Flows From Noncapital Financing Activities
Grants received
5,189
61
13
81
-
13,403
120
18,867
-
Transfers from other funds
4,253
58
577
93
6
30
278
5,295
499
Transfers to other funds
-
(47)
-
(28)
(32)
(38)
(75)
(220)
-
Repayment/(payment) of notes receivable
-
-
-
-
-
10
-
10
-
Repayment/(payment) of advances from other funds
-
-
-
570
-
-
464
106
Net cash flows from (used for) noncapital financing
activities
9,442
72
590
716
26
13,405
141
24,058
499
Cash Flows From Capital and Related Financing
Activities
Capital grants received
-
-
-
-
-
-
315
315
-
Lease revenues received
126
-
-
16
-
-
115
257
20
Acquisition and construction of property and
equipment
(166)
(5,662)
(559)
(4,443)
(302)
(35)
(573)
(11,740)
(3,291)
Proceeds from sale of property
-
2
21
-
-
-
-
23
234
Proceeds from issuance of capital loan note
-
788
-
-
-
-
-
788
-
Principal paid on subscription liability
(33)
-
(21)
-
-
-
-
(54)
(57)
Interest paid on subscription liability
-
-
-
-
-
-
-
-
(3)
Principal paid on bonded debt
-
-
(1,747)
-
-
-
-
(1,747)
-
interest paid on bonded debt
-
-
51
-
-
-
-
51
-
Net cash flows from (used for) capital and related
financing activities
(73)
(4,872)
2,357
(4,427)
302
35
143
12,209
3,097
Cash Flows From Investing Activities
Interest on investments
667
1,132
917
1,467
122
312
212
4,829
2,187
Net increase (decrease) in cash and cash equivalents
1,202
307
1,878
10
1,136
1,280
(372)
5,441
5,148
Cash and Cash Equivalents, Beginning
10,570
27,189
17,432
30,991
2,539
7,471
4,710
100,902
46,059
Cash and Cash Equivalents, Ending
$ 11,772
$ 27,496
$19,310
$ 31,001
$ 3,675
$ 9,751
$ 4,339
#######
$ 51,207
Reconciliation of operating income (loss)
to net cash flows from (used for) operating activities:
Operating income (loss)
$ (9,883)
$ (111)
$ 608
$ (937)
$ (245)
$ (12,919)
$ (2,033)
$(25,520)
$ 3,813
Adjustments to reconcile operating income
(loss) to net cash flows from (used for) operating activities:
Depreciation/amortization expense
1,165
4,324
2,327
592
1,519
233
2,364
12,524
2,650
Changes in:
Receivables:
Accounts and unbilled usage
36
(85)
(5)
(210)
(22)
(4)
(4)
(294)
(51)
Due from other governments
37
-
-
30
-
-
(3)
64
64
Inventories
(36)
-
46
-
-
-
-
10
(39)
Accounts payable
(127)
(79)
(96)
(13)
104
4
(675)
(882)
(100)
Accrued liabilities
23
12
19
18
1
9
10
92
(657)
Employee vested benefits
48
6
1
1
(3)
(5)
16
64
20
Due to other governments
-
1
(3)
3
-
-
-
1
-
Unearued revenue
-
-
-
-
-
26
-
26
-
Deposits
1
-
9
3
-
262
1
276
Net pension liability
290
155
127
202
14
29
167
984
182
Deferred outflows ofresources
(315)
(154)
(191)
(227)
(16)
(88)
(130)
(1,121)
(170)
Deferred inflows ofresources
(171)
(101)
(130)
(131)
(11)
(26)
(57)
(627)
(120)
Other post employment benefits liability
98
7
16
43
1
77
44
286
(33)
Landfill closure/postclosure liability
2,880
2,880
Total adjustments
1,049
4,086
2,120
3,191
1,587
517
1,733
14,283
1,746
Net cash flows from (used for) operating activities
$ (8,834)
$ 3,975
$ 2,728
$ 2,254
$ 1,342
$ (12,402)
$ (300)
$(11,237)
$ 5,559
Noncash Investing, Capital, and
Financing Activities:
Contributions of capital assets from
government and others $ - $
Capital grants not yet received $ - $
Operating grants not yet received $ 4,740 $
Subscription asset financed $ 128 $
The notes to the financial statements are an integral pan of this statement.
630 $ 3,156 $
- $ 1,925 $
- $ - $ 5,711 $
- $ - $
- $ - $
- $ 649 $ 649 $
- $ - $
- $ - $
99 $ 120 $ 4,959 $
- $ 78 $
- $ - $
- $ - $ 206 $
40
City of Iowa City, Iowa
Statement of Fiduciary Net Position
Custodial Fund
June 30, 2024
(amounts expressed in thousands)
Project Green
Assets
Equity in pooled cash and investments $ 80
Interest receivable 1
Total assets 81
Liabilities
Accounts payable
Total liabilities
Net Position
Restricted for an organization $ 80
The notes to the financial statements are an integral part of this statement.
41
City of Iowa City, Iowa
Statement of Changes in Fiduciary Net Position
Custodial Fund
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Additions:
Contributions
Interest
Total additions
Deductions:
Services and charges
Total deductions
Change in net position
Net Position, Beginning
Net Position, Ending
Project Green
$ 37
4
41
26
26
15
65
$ 80
The notes to the financial statements are an integral part of this statement.
►K
City of Iowa City, Iowa
Notes to Financial Statements
June 30, 2024
1. Accounting Policies
The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the
Council/Manager form of government. The City provides a broad range of services to its citizens including
general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass
transportation system, parking facilities, water treatment, wastewater treatment, storm water collection,
sanitation collection and disposal (including landfill operations) and a housing authority.
The financial statements of the City have been prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental
accounting and financial reporting principles. The more significant accounting policies of the City are
described below.
The Reporting Entity
For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards,
commissions, and authorities. The City has also considered all potential component units for which it is
financially accountable, and other organizations for which the nature and significance of their relationship
with the City are such that exclusion would cause the City's financial statements to be misleading or
incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in
determining financial accountability. These criteria include appointing a voting majority of an
organization's governing body, and (1) the ability of the City to impose its will on that organization or (2)
the potential for the organization to provide specific benefits to or impose specific financial burdens on the
City. There were no component units required to be included.
Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non -fiduciary activities of the primary government.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely to a significant extent on fees and charges for
support.
The Statement of Net Position presents the City's nonfiduciary assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference reported as net position. Net position is
reported in the following categories:
Net investment in capital assets consists of capital assets, net of accumulated
depreciation/amortization and reduced by outstanding balances for bonds, notes and other debt
attributable to the acquisition, construction, or improvement of those assets.
Restricted net position results when constraints placed on net position use are either externally
imposed or are imposed by law through constitutional provisions or enabling legislation.
Unrestricted net position consists of net position not meeting the definition of the preceding
categories. Unrestricted net position is often subject to constraints imposed by management which
can be removed or modified.
43
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements
of a particular function or segment. Taxes and other items not properly included among program revenues
are reported as general revenues.
As a general rule, the effect of inter -fund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are charges between the City's water and sewer function and
various other functions of the government. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Description of Funds
These financial statements include all funds owned or administered by the City or for which the City acts
as custodian.
The accounts of the City are organized on the basis of funds, each of which is considered to be a separate
accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted
for by providing a separate set of self -balancing accounts that comprise its assets, deferred outflows of
resources, liabilities, deferred inflows of resources, net position, revenues, and expenditures or expenses,
as appropriate. The individual funds account for the governmental resources allocated to them for the
purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions.
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its "measurement
focus." The government -wide financial statements, proprietary funds, and custodial funds are accounted
for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under
the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are
incurred.
All governmental funds are accounted for using a current financial resources measurement focus, which
generally includes only current assets and current liabilities on the balance sheet. The modified accrual
basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when
susceptible to accrual, which is in the period in which it becomes both available (collectible within the
current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the
amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental
revenue, and interest earned on investments (if they are collected within 60 days after the year-end).
Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term
debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only
when payment is due.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Other Shared Revenue and Grants Fund is used to account for revenue from various sources,
primarily road use tax monies from the State of Iowa and reimbursable programs funded by
federal and state grants.
44
The Employee Benefits Fund is used to account for the employee benefits related to those
employees who are paid through governmental fund types, which are funded by a separate
property tax levy.
The Other Construction Fund accounts for the construction or replacement of other City general
capital assets, such as administrative buildings with various funding sources, including general
obligation bonds, intergovernmental revenues, and contributions.
The Bridge, Street, and Traffic Control Construction Fund accounts for the construction or
replacement of infrastructure capital assets, such as streets, bridges, dams, sidewalks, and lighting
system.
The Debt Service Fund accounts for the accumulation of resources for the payment of general long
term debt principal, interest, and related costs.
The City reports the following major proprietary funds:
The Transit Fund is used to account for the operation and maintenance of the public transportation
system.
The Wastewater Treatment Fund is used to account for the operation and maintenance of the
wastewater treatment facility and sanitary sewer system.
The Water Fund is used to account for the operation and maintenance of the water system.
The Sanitation Fund is used to account for the operation and maintenance of the solid waste
collection system and landfill.
The Stormwater Fund is used to account for the operation and maintenance of the stormwater
utility system.
The Housing Authority Fund is used to account for the operations and activities of the City's low
and moderate income housing assistance and public housing programs.
The City has two nonmajor enterprise funds, the Airport Fund is used to account for the operation and
maintenance of the airport facility and the Parking Fund is used to account for the operation and
maintenance of the "on" and "off' street public parking facilities.
Additionally, the City reports internal service funds to account for goods and services provided by one
department to other City departments on a cost reimbursement basis. The funds in this category are the
Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information Technology
Fund.
The City also reports a custodial fund account for monies held for Project Green, a local 501(c)(3) not -for -
profit agency.
Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non -operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
Uses of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the
reporting period. Actual results could differ from these estimates. Material estimates that are particularly
susceptible to significant change in the near -term relate to the determination of other postemployment
benefit obligation, net pension liability, landfill closure and post -closure care costs, total capacity of the
landfill at closure, and calculation of the costs of claims incurred, but not reported.
Cash and Investments
The City maintains one primary demand deposit account through which the majority of its cash resources
are processed. Substantially all investment activity is carried on by the City in an investment pool, except
for those funds required to maintain their investments separately. The earnings on the pooled investments
are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa
Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the
Investment Company Act of 1940.
For the purpose of the Statement of Cash Flows, restricted and non -restricted investments with a maturity
of three months or less when purchased are considered cash equivalents.
Receivables and Revenue Recognition
Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that
the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property
tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the
budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor
by March 31 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget
certification for the following fiscal year becomes effective on the first day of that year. Although the
succeeding year property tax receivable has been recorded, it will not be recognized as revenue until the
year for which it is levied.
Federal and state grants are recorded as receivables and the revenue is recognized during the period in
which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual
criteria are met.
Income from investments in all fund types and from charges for services in proprietary fund types is
recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services
(in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in
cash because they are generally not measurable until actually received.
Inventories
Inventories are recognized only in those funds in which they are material to the extent of affecting
operations. For the City, these are the Other Shared Revenue and Grants Fund, Transit Fund, Water Fund,
and the Equipment Maintenance Fund. Inventories of materials and supplies are determined by actual count
and priced on the FIFO method in the Other Shared Revenue and Grants Fund and the average cost method
for the Transit, Water and Equipment Maintenance Fund.
Leases
The City is a lessor for several noncancellable leases of City property. The City recognizes lease
receivables and deferred inflows of resources at the commencement of the lease term in the governmental
►i
activities, the business type activities, governmental, business type, and internal service fund financial
statements. As lessor, the assets underlying the lease are not derecognized.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by
the principal portion of lease payments received. The deferred inflow of resources is initially measured as
the initial amount of the lease receivable, adjusted for lease payments received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life
of the lease term.
Key estimates and judgments include how the City determines the discount rate it uses to discount the
expected lease receipts to present value, lease term and lease receipts.
The City uses its most recent borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
Subscription -Based Information Technology Arrangements (SBITA)
The City has entered into contracts that convey control of the right to use information technology
software. The City has recognized subscription liabilities and intangible right -to -use IT subscription
assets in the government -wide financial statements, and in the proprietary fund financial statements.
At the commencement of the IT subscription term, the City initially measures the subscription liability at
the present value of payments expected to be made during the subscription term. Subsequently, the IT
subscription liability is reduced by the principal portion of payments made. The right -to -use IT
subscription asset is initially measured as the sum of the initial IT subscription liability, adjusted for
payments made at or before the commencement date, plus capitalization implementation costs less any
incentives received from the SBITA vendor at or before the commencement of the subscription term.
Subsequently, the right -to -use IT subscription asset is amortized on a straight-line basis over its useful
life.
Key estimates and judgments related to IT subscription arrangements include how the City determines the
discount rate it uses to discount the expected payments to present value, term and payments.
The City uses its most recent borrowing rate as the discount rate.
The IT subscription term includes the noncancellable period of the subscription. Payments included in the
measurement of the liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of its IT subscription
and will remeasure the right -to -use IT subscription asset and liability if certain changes occur that are
expected to significantly affect the amount of the subscription liability.
Right -to -use IT subscription assets are reported with other capital assets and IT subscription liabilities are
reported with long-term debt on the statement of net position.
Capital Assets
Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges,
water mains, and similar items), are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. The City follows the policy of not requiring
47
capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for
buildings and improvements, and $5,000 for equipment assets. Such assets are recorded at original purchase
cost or at acquisition value at the date of donation when received as donated properties.
Depreciation is computed using the straight-line method over the following estimated useful lives:
Infrastructure 3 — 100 years
Buildings and structures 20 — 50 years
Improvements other than buildings 10 — 50 years
Vehicles 2 — 20 years
Other equipment 3 — 30 years
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and
will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows of
resources consist of unrecognized items not yet charged to pension and OPEB expense and contributions
from the employer after the measurement date but before the end of the employer's reporting period.
Bond Premiums and Discounts
Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the
governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the
year of issuance. In the proprietary funds and the government -wide statements, they are amortized over the
life of the bonds.
Compensated Absences
Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment
upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the
accumulated sick leave at the time of termination on the basis of the employee's then effective hourly base
salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an
employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after
June 29,1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of the
Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System
(Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on
the same basis as they are reported by the Systems. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Landfill Closing Costs
Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided
for through charges to expense over the estimated useful life of the landfill on the basis of capacity used
(see Note 8).
Deferred Inflows of Resources
Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and
will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues are
measurable, they are not available. Available means collected within the current year or expected to be
collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of
48
resources in the governmental fund financial statements represent the amount of assets that have been
recognized, but the related revenue has not been recognized since the assets are not collected within the
current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current
year. The lease related deferred inflows is the unamortized portion of the lease receivable. Deferred inflows
of resources consist of property tax receivable, lease related deferred inflows, grants receivable and other
receivables.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax
receivable that will not be recognized as revenue until the year for which they are levied, the difference in
the carrying value of refunded debt and it's acquisition price, lease related deferred inflows, and the
unamortized portion of pension and OPEB related items.
Budgetary and Legal Appropriation and Amendment Policies
The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except
internal service and custodial funds. This is formalized in a separate budgetary report, the Financial Plan.
This budget is adopted on or before April 30 of each year to become effective July 1 and constitutes the
City's appropriation for each program and purpose specified therein until amended. The adopted budget
must include the following:
a. Expenditures for each function:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business-type/enterprise
b. The amount to be raised by property taxation
c. Income from sources other than property taxation
d. Transfers in and transfers out
The legal level of control (the level at which expenditures may not legally exceed appropriations) is the
function level for all funds combined, rather than at the individual fund level. Management can transfer
appropriations within a function, within a fund type, and between fund types, without the approval of the
governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore,
to aggregate the expenditures of the budgeted activities within the governmental fund types with the
expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such
function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The
City's budget for revenue focuses on aggregated totals by revenue source.
The City formally adopts budgets for several funds that are not required by state law to be included in the
annual function budget. Annual operating budgets are adopted for the internal service funds for
management control purposes. Such budgets, however, are not legally required to be adopted under state
statutes.
A City budget for the current fiscal year may be amended for any of the following purposes as prescribed
by Iowa statute:
a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on
hand at the end of the preceding fiscal year.
b. To permit the appropriation and expenditure of amounts anticipated being available from sources
other than property taxation.
c. To permit transfers between funds.
d. To permit transfers between functions.
49
A budget amendment must be prepared and adopted in the same manner as the original budget. The City's
budget was amended as prescribed, and the effects of those amendments are shown in the accompanying
budgetary comparison schedule. The original budget was increased by $35,049,504 in revenues and other
financing sources and by $112,860,046 in expenditures and other financing uses. Appropriations, as
adopted or amended, 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 adopted budget.
Restricted Assets
Assets within the individual funds, which can be designated by the City Council for any use within the
fund's purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by
bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets.
Liabilities, which are payable from restricted assets, are classified as such.
Classification of Fund Balances
Fund balances for the governmental funds are reported in classifications based on the nature of any
limitations requiring the use of resources for specific purposes (see Note 9).
Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities, and
deferred inflows of resources. Net investment in capital assets consists of capital assets, net of
accumulated depreciation and amortization, reduced by the outstanding balances of any borrowings used
for the acquisition, construction, or improvement of those assets. Net investment in capital assets excludes
unspent bond proceeds. As of June 30, 2024, there were unspent bond proceeds totaling $18,934,567 in
governmental activities. Net position is reported as restricted when there are limitations imposed on its
use through enabling legislation or through external restrictions imposed by creditors, grantors, or laws or
regulations of other governments.
Net position restricted through enabling legislation consists of $3,953,000 for employee benefits,
$19,024,000 for capital projects, $7,419,000 debt service, $237,000 for police, $3,251,000 for grant
agreements, and $10,432,000 for other purposes.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, and then unrestricted resources as they are needed.
2. Cash and Pooled Investments
The City's deposits in banks at June 30, 2024 were entirely covered or collateralized by federal depository
insurance, national credit union administration, letters of credit held by the City or by the State Sinking
Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments
against the depositories to insure there will be no loss of public funds.
The City is authorized by statute to invest public funds in obligations of the United States government, its
agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa
depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter
12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper or other
short-term corporate debt; 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; and warrants or improvement
certificates of a drainage district.
50
At June 30, 2024 the City of Iowa City had the following investments:
Fair
Investment
Value
Maturities
Federal Home Loan Mortgage Corporation Notes
$ 1,940,740
February 2025
Federal Farm Credit Bank Notes
3,222,580
December 2024 to September 2040
Federal National Mortgage Association
3,441,160
December 2027 to June 2029
Federal Home Loan Bank
16,996,400
August 2024 to January 2027
$ 25,600,880
The City uses the fair value hierarchy established by generally accepted accounting principles based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are
significant unobservable inputs.
The recurring fair value measurement for the Federal Home Loan Mortgage Corporation securities of
$1,940,740, the Federal Farm Credit Bank Note securities of $3,222,580, the Federal National Mortgage
Association securities of $3,441,160 and the Federal Home Loan Bank securities of $16,996,400
determined using the last reported sales price at current exchange rates (Level 1 inputs).
The City had no other investments meeting the disclosure requirements of Governmental Accounting
Standards Board Statement No. 72.
In addition, the City had investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued
at an amortized cost of $21,843,943, which approximates fair value. The Diversified Portfolio consists of
cash and short-term investments valued at amortized cost, which approximates fair value, pursuant to
Governmental Accounting Standards Board Statement No. 79.
The Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others.
IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable
eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds.
IPAIT is registered under the Investment Company Act of 1940.
The IPAIT portfolios have followed established money market mutual fund investment parameters
designed to maintain a $1 per unit net asset value since inception and were registered with the Securities
and Exchange Commission (SEC).
Interest rate risk - The City's investment policy limits the investment of operating funds to investments that
mature within 397 days. The portion of operating funds in excess of 33% of operating funds may be invested
in certificates of deposit which mature within 63 months or less. Funds not identified as operating funds
may be invested in instruments with maturities longer than 397 days.
Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings
issued by nationally recognized statistical rating organizations. It is the City's policy to comply with rating
restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's Investors
service as it is a state security that is backed by the full faith and credit of the issuing government and is not
subject to credit risk.
Concentration of credit risk. The City investment policy limits the amount that may be invested in any one
issuer to a maximum amount approved by the City Council.
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings
associated with other funds. These funds are the Employee Benefits, Other Shared Revenue and Grants,
and Sanitation funds.
51
3. Interfund Balances and Transfers
Interfund transfers for the year ended June 30, 2024, consisted of the following:
Transfer from
Capital Projects
Bridge, Street
Other
and Traffic
Shared Revenue
Employee
Control Nonmajor
General
and Grants
Benefits
Construction Governmental
Transfer to:
General
$ -
$ 9,996,846
$ 13,172,408
$ - $ 44,682
Other Shared Revenue
and Grants
1,000,000
-
664,334
- -
Employee Benefits
-
1,274
-
- -
Debt Service
20,468
-
-
- 1,688,092
Capital Projects
Other Construction
2,028,489
309,344
-
- 1,046
Capital Projects
Bridge, Street and
Traffic Control Construction
418,753
3,245,000
-
- -
Nonmajor Governmental
231,623
351,698
-
- -
Transit
4,058,874
119,540
-
- -
Wastewater Treatment
2,263
55,573
-
269,886 -
Water
502,103
74,677
-
2,890,401 -
Sanitation/Landfill
5,966
86,833
-
- -
Stormwater
1,195
4,631
-
1,738,807 -
Housing Authority
-
30,102
-
- -
Nonmajor Enterprise
106,500
171,029
-
- -
Intemal Service
40,176
259,249
-
93,219 -
Total Transfer to
$ 8,416,410
$ 14,705,796
$ 13,836,742
$ 4,992,313 $ 1,733,820
Transfers are used to move
revenues and bond proceeds from the fund that State statutes or the budget
requires to collect them to the
fund that the
State statutes or the budget requires to expend them.
6%
Transfer from
Wastewater Housing Nonmajor
Treatment Sanitation Stormwater Authority Enterprise
38,193 $
Total
Transfer from
$ 23,252,129
- 1,664,334
- 1,274
- 1,708,560
- 2,338,879
3,663,753
583,321
- - - - 75,000 4,253,414
- - - - - 327,722
- - - - - 3,467,181
- - - - - 92,799
- - - - - 1,744,633
- - - - - 30,102
- - - - - 277,529
46,530 27,750 31,830 - - 498,754
$ 46,530 $ 27,750 $ 31,830 $ 38,193 $ 75,000 $ 43,904,384
53
Interfund balances for the year ended June 30, 2024, consisted of the following:
Due from
General
Due to:
Nonmajor Governmental $ 84,558
Nonmajor Enterprise 126,390
Total $ 210,948
Interfiuid balances at June 30, 2024, include due to/from other funds, which represent amounts for negative
cash balance funding. The $84,558 advance to Nonmajor Governmental Funds and the $126,390 advance
to the Nonmajor Enterprise Funds are expected to be repaid within the next year.
Advances to:
Other Shared Revenue
and Grants
Other Construction
Nonmajor Enterprise
Total
Advances from
Debt
Service Sanitation Total
$ 17,585 $ -
- 2,619,085
1,010,419
$ 17,585
2,619,085
1,010,419
$ 17,585 $ 3,629,504 $ 3,647,089
Interfund balances at June 30, 2024, include advances to/from other funds, which represent amounts for
construction loans and a revenue bond redemption loan. All of the $17,585 advance to the Other Shared
Revenue and Grants Fund is expected to be repaid within the next year. $2,424,110 of the $2,619,085
advance to the Other Construction Fund is not expected to be repaid within the next year. $715,579 of the
$1,010,419 advance to the Nonmajor Enterprise Funds is not expected to be repaid within the next year.
54
4. Lease Receivable
During the year ended June 30, 2024, the City recognized the following related to its non -regulated leases
in which the maximum possible lease term is noncancelable by both the lessee and the lessor and is more
than 12 months. The leases are not considered principal ongoing operations of the City.
Governmental Activities:
On October 6, 2015, the City entered into an agreement to lease building space in the Library building.
The initial term of the lease was for a four-year term with an extension of an additional four-year term.
The lease was amended in fiscal year 2024 to add another four-year term with another extension of an
additional four years. The City believes it is more likely than not that the term will be for sixteen years.
The monthly rent is $2,000. The City recognized $18,645 in lease revenue and $5,355 in interest revenue
during the current fiscal year related to this lease. As of June 30, 2024, the City's receivable for lease
payments was $163,704. The City has a deferred inflow of resources associated with this lease of
$163,704 that will be recognized as revenue over the lease term.
On November 10, 2015, the City entered into an agreement to lease space for fiber. The initial term of the
lease was for a ten-year term with no option of extension. The City believes it is more likely than not that
the term will be for ten years. The annual rent is $20,793. The City recognized $19,569 in lease revenue
and $1,224 in interest revenue during the current fiscal year related to this lease. As of June 30, 2024, the
City's receivable for lease payments was $20,171. The City has a deferred inflow of resources associated
with this lease of $20,171 that will be recognized as revenue over the lease term.
Business -type Activities:
On August 16, 2012, the City entered into an agreement to lease building space in the Court Street
Transportation Center. The initial term of the lease was for a three-year term with an extension of up to
five additional three-year terms. The City believes it is more likely than not that the term will be for
eighteen years. The monthly rent is $1,450. The City recognized $14,193 in lease revenue and $3,207 in
interest revenue during the current fiscal year related to this lease. As of June 30, 2024, the City's
receivable for lease payments was $96,413. The City has a deferred inflow of resources associated with
this lease of $96,413 that will be recognized as revenue over the lease term.
On July 1, 2015, the City entered into an agreement to lease building space in the Court Street
Transportation Center. The initial term of the lease was for a five-year term with an extension of an two
additional five-year terms. The City believes it is more likely than not that the term will be for fifteen
years. The monthly rent is $9,259. The City recognized $89,562 in lease revenue and $21,546 in interest
revenue during the current fiscal year related to this lease. As of June 30, 2024, the City's receivable for
lease payments was $650,812. The City has a deferred inflow of resources associated with this lease of
$650,812 that will be recognized as revenue over the lease term.
On February 11, 2021, the City entered into an agreement to lease building space in the Court Street
Transportation Center. The initial term of the lease was for a three-year term with an extension of up to
four additional five-year terms. The City believes it is more likely than not that the term will be for fifteen
years. The monthly rent is $3,445. The City recognized $22,261 in lease revenue and $19,079 in interest
revenue during the current fiscal year related to this lease. As of June 30, 2024, the City's receivable for
lease payments was $607,350. The City has a deferred inflow of resources associated with this lease of
$607,350 that will be recognized as revenue over the lease term.
61i
On February 21, 2012, the City entered into an agreement to lease building at the East Side Recycling
Center. The initial term of the lease was for a ten-year term with an extension of up to three additional
five-year terms. The City believes it is more likely than not that the term will be for twenty-five years.
The monthly rent is $1,677.58. The City recognized $13,444 in lease revenue and $6,687 in interest
revenue during the current fiscal year related to this lease. As of June 30, 2024, the City's receivable for
lease payments was $209,778. The City has a deferred inflow of resources associated with this lease of
$209,778 that will be recognized as revenue over the lease term.
On February 21, 2012, the City entered into an agreement to lease building at the East Side Recycling
Center. The initial term of the lease was for a ten-year term with an extension of up to three additional
five-year terms. The City believes it is more likely than not that the term will be for twenty-five years.
The monthly rent is $322.50. The City recognized $2,585 in lease revenue and $1,285 in interest revenue
during the current fiscal year related to this lease. As of June 30, 2024, the City's receivable for lease
payments was $40,328. The City has a deferred inflow of resources associated with this lease of $40,328
that will be recognized as revenue over the lease term.
The City has four leases for land use at and around the Airport that were entered into agreement between
February 12, 1991 and November 1, 2018. The initial terms of the leases range between five and eighty
years with two of the agreements having options to extend between five and ten years. The City believes
it is more likely than not that the terms will be between ten and eighty years. The annual rent for all four
of these leases is $17,284. The City recognized $11,407 in lease revenue and $5,877 in interest revenue
during the current fiscal year related to these leases. As of June 30, 2024, the City's receivable for lease
payments was $202,567. The City has a deferred inflow of resources associated with these leases of
$202,567 that will be recognized as revenue over the lease terms.
The City has eight leases for hangar use at the Airport that were entered into agreement between April 12,
2012 and October 1, 2023. The initial terms of these leases range between one and thirty years with two
of the leases having the option to renew up to another ten years. The City believes it is more likely than
not that the terms will be between one and thirty years. The monthly rent for these leases total $11,915.
The City recognized $103,602 in lease revenue and $14,309 in interest revenue during the current fiscal
year related to these leases. As of June 30, 2024, the City's receivable for lease payments was $459,133.
The City has a deferred inflow of resources associated with these leases of $459,133 that will be
recognized as revenue over the lease terms.
6T
5. Capital Assets
Capital asset activity for the year ended June 30, 2024, was as follows:
Acquisitions Disposals
Beginning and and Balance
July 1, 2023 Transfers Transfers June 30, 2024
Governmental activities:
Capital assets, not being depreciated:
Land $ 32,542,100 $ 72,382 $ $ 32,614,482
Construction in progress 19,805,180 11,269,158 4,963,531 26,110,807
Total capital assets, not being depreciated 52,347,280 11,341,540 4,963,531 58,725,290
Capital assets, being depreciated
Buildings
68,730,625
1,035,194
9,600
69,756,219
Improvements other than buildings
8,193,976
253,989
480,805
7,967,160
Machinery and equipment
66,718,874
3,956,905
2,893,108
67,782,670
IT subscriptions
1,077,152
132,758
-
1209,910
Infrastructure
226,537,977
5207,414
123,243
231,622,149
Total capital assets being depreciated
371,258,605
10,586,261
3,506,756
378,338,108
Less accumulated depreciation/amortization for
Buildings
34,333,229
1,752,313
9,600
36,075,941
Improvements other than buildings
5,097,302
246,754
348,214
4,995,842
Machinery and equipment
30,776,557
4,798,691
2,868,995
32,706,252
IT Subscriptions
707,119
165,606
-
872,725
Infrastructure
67,6%,718
4,547,783
93,665
72,150,837
Total accumulated depreciation/amortization
138,610,925
11,511,147
3,320,474
146,801,598
Total capital assets, being depreciated, net
232,647,679
(924,886)
186,282
231,536,511
Governmental activities capital assets, net $
284,994,959
$ 10,416,654
$ 5,149,813 $
290,261,801
Business -type activities:
Capital assets, not being depreciated:
Land $
30,957,185
$
$ $
30,957,185
Construction in progress
15,053,020
15,770,663
6,316,860
24,506,822
Total capital assets, not being depreciated
46,010,205
15,770,663
6,316,860
55,464,007
Capital assets, being depreciated:
Buildings
137,225,718
312,005
368,300
137,169,423
Improvements other than buildings
11,799,598
155,531
-
11,955,129
Machinery and equipment
41,460,101
2,837,327
351,528
43,945,900
IT subscriptions
348,686
206,809
-
555,495
Infrastructure
352,852,392
5,554,847
524,116
357,883,123
Total capital assets being depreciated
543,686,495
9,066,518
1243,943
551,509,070
Less accumulated depreciation/amortization for:
Buildings
81,255,608
3,126,661
368,300
84,013,970
Improvements other than buildings
8,702,059
251,090
-
8,953,149
Machinery and equipment
25,955,029
1,535,200
351,528
27,138,701
IT Subscriptions
-
158,407
-
158,407
Infrastructure
142,204,814
7,453,150
524,116
149,133,848
Total accumulated depreciation/amortization
258,117,510
12,524,508
1243,943
269,398,075
Total capital assets, being depreciated, net
285,568,985
(3,457,990)
282,110,995
Business -type activities capital assets, net $
331,579,190
$ 12,312,672
$ 6,316,860 $
337,575,002
57
Depreciation/Amortization expense was charged to functions as follows:
Governmental activities:
Public safety
Public works
Culture and recreation
Community and economic development
General government
Total depreciation/amortization expense - governmental activities
Business -type activities:
Transit
Wastewater treatment
Water
Sanitation
Stormwater
Housing authority
Nonmajor enterprise
Total depreciation expense - business -type activities
6. Long Term Debt
Changes in Debt for Bonds
Bond debt activity for the year ended June 30, 2024, was as follows:
Governmental activities
General obligation bonds
Plus: Ummortized
Premium
Total general obligation bonds
Revenue bonds
Total revenue bonds
Business -type activities
Revenue bonds
Plus: Ummortized
Premium
Total revenue bonds
$ 1,736,164
5,653,442
3,572,589
66,290
482,664
$ 11,511,147
$ 1,164,825
4,324,326
2,327,164
591,789
1,518,751
233,377
2,364,277
$ 12,524,508
Due Within
July 1, 2023 Issues Retirements June 30, 2024 One Year
$
52,915,000
$
10,140,000
$
10,075,000
$
52,980,000
$
10,545,000
3,304,091
719,865
547,035
3,476,920
511,548
56,219,091
10,859,865
10,622,035
56,456,920
11,056,548
10,880,000
-
955,000
9,925,000
950,000
10,880,000
-
955,000
9,925,000
950,000
$
67,099,091
$
10,859,865
$
11,577,035
$
66,381,920
$
12,006,548
$
3,625,000
$
-
$
1,745,000
$
1,880,000
$
1,325,000
76,946
-
35,234
41,712
35,234
$
3,701,946
$
-
$
1,780234
$
1,921,712
$
1,360234
58
General Obligation Bonds
Various issues of general obligation bonds totaling $52,980,000 are outstanding as of June 30, 2024. The
bonds have interest rates ranging from 1.80% to 6.00% and mature in varying annual amounts ranging from
$340,000 to $2,000,000 per issue, with the final maturities due in the year ending June 30, 2034. 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.
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ending
June 30
Governmental Activities
Principal
Interest
2025
$ 10,545,000
$ 1,979,724
2026
8,680,000
1,566,078
2027
7,730,000
1,235,453
2028
6,685,000
947,178
2029
5,705,000
705,328
2030-2034
13,635,000
1,161,645
Total
$ 52,980,000
$ 7,595,406
Revenue Bonds
As of June 30, 2024, the following unmatured revenue bond issues are outstanding:
Original issue amount
Interest rates
Annual maturities
Amount outstanding
Water
$ 9,560,000
1.5% to 5.0%
$ 555,000 to
$ 1,325,000
$ 1,880,000
Taxable Urban
Renewal
$ 12,805,000
3.0%
$ 725,000 to
$ 950,000
$ 9,925,000
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30
Governmental Activities
Principal Interest
Business -type Activities
Principal Interest
2025
$ 950,000
$ 297,750 $ 1,325,000 $ 26,081
2026
950,000
269,250 555,000 6,244
2027
825,000
240,750 - -
2028
725,000
216,000 - -
2029
740,000
194,250 - -
2030-2034
3,980,000
627,750 - -
2035-2036
1,755,000
79,350 - -
Total
$ 9,925,000
$ 1,925,100 $ 1,880,000 $ 32,325
59
The revenue bond ordinances required that water revenues and urban renewal tax revenues be set aside into
separate and special accounts as they are received. The use and the amounts to be included in the accounts
are as follows:
Account
(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 fund equals: Taxable Urban Renewal
Revenue bonds — maximum debt service due on the bonds in any
succeeding fiscal year. Water Revenue bonds — 10% of the
original principal amounts of all related bond issues.
(c) Improvement Reserve $5,000 per month until the reserve balance equals or exceeds
$450,000 for Water Revenue bonds, with no further deposits once
the minimum balance is reached. If the reserve falls below the
required minimum, monthly transfers in the aforementioned
amounts will resume.
In fiscal year ended June 30, 2024, the Water Fund had net revenues of $3,932,000 and the amount of
principal and interest due was $1,801,000.
Summary of Bond Issues
General obligation and revenue bonds payable at June 30, 2024, are comprised of the following issues:
Date of
Amount
Interest
Final
Outstanding
Issue
Issued
Rates
Maturity
June 30, 2024
General Obligation Bonds:
Multi Purpose
June 2015
7,785,000
2.0
- 2.25
6/25
880,000
Multi Purpose
June 2016
8,795,000
2.0
- 3.0
6/26
2,045,000
Multi Purpose
June 2017
9,765,000
2.0
- 2.5
6/27
3,165,000
Multi Purpose
June 2018
8,895,000
1.8
-2.65
6/28
3,795,000
Multi Purpose
June 2019
12,535,000
2.0
- 2.25
6/29
4,640,000
Multi Purpose
June 2020
12,145,000
2.0
- 5.0
6/30
4,740,000
Multi Purpose
June 2021
11,325,000
2.0
- 5.0
6/31
7,920,000
Multi Purpose
June 2022
10,255,000
3.3
- 5.0
6/32
7,945,000
Multi Purpose
June 2023
9,105,000
3.0
- 5.0
6/33
7,710,000
Multi Purpose
June 2024
10,140,000
4.0
- 6.0
6/34
10,140,000
Total General Obligation Bonds
$ 52,980,000
Date of
Amount
Interest
Final
Outstanding
Issue
Issued
Rates
Maturity
June 30, 2024
Revenue Bonds:
Refunded Water Bonds (1)
June 2016
3,650,000
1.5
- 5.0
7/24
525,000
Refunded Water Bonds (2)
June 2017
5,910,000
2.0
- 2.25
7/25
1,355,000
Taxable Urban Renewal
Sept. 2016
12,805,000
3.0
6/36
9,925,000
Total Revenue Bonds
$ 11,805,000
$ 64,785,000
(1) This bond issue refunded the October 2008 Water Revenue Bonds.
(2) This bond issued refunded the May 2009 Water Revenue Bonds.
Capital Loan Note Payable
On April 26, 2024 the City entered into an agreement with the Iowa Finance Authority for up to $3,322,000
to be used for the purpose of paying for the planning and design costs for the Wastewater Gas Digester
Improvements project. During the year ended June 30, 2024, the City drew $788,425 on the note, and as
of June 30, 2024, $788,425 is owed in relationship to this note. This note is due April 26, 2027.
This note was issued pursuant to Chapters 76.13 and 384.24A of the Code of Iowa in anticipation of the
receipt of and are payable from the proceeds of an authorized loan agreement and the corresponding
issuance of water revenue bonds. The capital loan note payable has a term of three years.
61
Conduit Debt Obligations
From time to time, the City has issued Industrial Development Revenue Bonds and Midwestern Disaster
Area Revenue Bonds to provide financial assistance to private sector entities for the acquisition,
construction, and renovation of industrial and commercial facilities deemed to be in the public interest. The
bonds are collateralized by the property financed and are payable solely from payments received on the
underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a
bond trustee, who is a third -party financial institution, and in turn, disburses the payment to the respective
bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner
for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements. The City has not extended any additional commitments beyond the collateral, the
payments from the private sector entities on the underlying mortgage loans, and maintenance of the tax-
exempt status of the conduit debt obligation were extended by the City for and of the bonds.
As of June 30, 2024, there were two series of Industrial Development Revenue Bonds outstanding, with an
aggregate principal amount payable of $4,711,298.
Debt Legal Compliance
Legal Debt Margin:
As of June 30, 2024, the general obligation debt issued by the City did not exceed its legal debt limit
computed as follows (amounts expressed in thousands):
Assessed valuation:
Real property $ 7,206,677
Utilities 161,652
Total valuation
Debt limit, 5% of total assessed valuation
Debt applicable to debt limit:
General obligation bonds
Urban renewal revenue bonds
Capital loan note payable
Notes payable (Note 8)
Subscription liabilities (Note 8)
Other legal indebtedness (TIF rebates)(Note 11)
Total net debt applicable to limit
Legal debt margin
7. Pension and Retirement Systems
7,368,329
368,416
52,980
9,925
788
211
406
29,620
93,930
$ 274,486
The City contributes to two employee retirement systems, the Municipal Fire and Police Retirement System
of Iowa (MFPRSI) and the Iowa Public Employees Retirement System (IPERS). MFPRSI is governed by
a nine -member Board of Trustees. Though separate and apart from state government, the Board is
authorized by the state legislature, which also establishes by statute the pension and disability benefits and
the System's funding mechanism. IPERS is administered by the State of Iowa. All full-time employees
must participate in either MFPRSI or IPERS. As of June 30, 2024, the City had the following balances
related to its pension accounts:
IPERS
MFPRSI
Total
Net Pension Liability
$ 19,005,162
$ 22,064,192 $
41,069,354
Deferred Inflows
229,246
883,593
1,112,839
Deferred Outflows
7,439,034
6,778,287
14,217,321
Pension Expense
1,679,808
2,962,813
4,642,621
62
For the governmental activities, net pension liability is generally liquidated by the General Fund,
Community Development Block Grant Fund and Other Shared Revenue and Grants Fund.
Municipal Fire and Police Retirement System of Iowa (MFPRSI)
Plan Description
MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter
411 of the Code of Iowa. Employees of the City are provided with pensions through a cost -sharing multiple
employer defined benefit pension plan administered by MFPRSL MFPRSI issues a stand-alone financial
report which is available to the public by mail at 7155 Lake Drive, Suite 9201, West Des Moines, Iowa
50266 or at www.mfprsi.org.
MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules
thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents.
The following brief description is provided for general informational purposes only. Refer to the plan
documents for more information.
Pension Benefits
Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service
retirement benefits are granted to members with 22 years of service, while partial benefits are available to
those members with 4 to 22 years of service based on the ratio of years completed to years required (Le.,
22 years). Members with less than 4 years of service are entitled to a refund of their contribution only, with
interest, for the period of employment.
Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3
years becomes the member's average final compensation. The base benefit is 66 percent of the member's
average final compensation. Additional benefits are available to members who perform more than 22 years
of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits
are available to the beneficiary of a retired member according to the provisions of the benefit option chosen
plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those
members who chose the basic benefit with a 50 percent surviving spouse benefit.
Active members, at least 55 years of age, with 22 or more years of service have the option to participate in
the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who
is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3-,
4-, or 5-year DROP period. By electing to participate in DROP the member is signing a contract indicating
the member will retire at the end of the selected DROP period. During the DROP period the member's
retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member.
Assuming the member completes the DROP period, the DROP benefit is equal to 52% of the member's
retirement benefit at the member's earliest date eligible and 100% if the member delays enrollment for 24
months. At the member's actual date of retirement, the member's DROP account will be distributed to the
member in the form of a lump sum or rollover to an eligible plan.
Disability and Death Benefits
Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined
as permanent disability incurred in the line of duty, with benefits equivalent to the greater of 60 percent of
the member's average final compensation or the member's service retirement benefit calculation amount.
Ordinary disability occurs outside the call of duty and pays benefits equivalent to the greater of 50 percent
of the member's average final compensation, for those with 5 or more years of service, or the member's
service retirement benefit calculation amount, and 25 percent of average final compensation for those with
less than 5 years of service.
Death benefits are similar to disability benefits. Benefits for accidental death are 50 percent of the average
final compensation of the member plus an additional amount for each child, or the provisions for ordinary
death. Ordinary death benefits consist of a pension equal to 40 percent of the average final compensation
of the member plus an additional amount for each child, or a lump -sum distribution to the designated
63
beneficiary equal to 50 percent of the previous year's earnable compensation of the member or equal to the
amount of the member's total contributions plus interest.
Benefits are increased annually in accordance with Chapter 411.6 of the Code of Iowa which states a
standard formula for the increases.
The surviving spouse or dependents of an active member who dies due to a traumatic personal injury
incurred in the line of duty receives a $100,000 lump -sum payment.
Contributions
Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa,
the contribution rate was 9.40% of earnable compensation for the year ended June 30, 2024.
Employer contribution rates are based upon an actuarially determined normal contribution rate and set by
state statute. The required actuarially determined contributions are calculated on the basis of the entry age
normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of Iowa.
The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current
plan assets, with such total divided by 1 percent of the actuarially determined present value of prospective
future compensation of all members, further reduced by member contributions and state appropriations.
Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of earnable
compensation. The contribution rate was 22.98% for the year ended June 30, 2024.
The City's contributions to MFPRSI for the year ended June 30, 2024, was $2,958,187.
If approved by the state legislature, state appropriation may further reduce the employer's contribution rate,
but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The State of
Iowa therefore is considered to be a nonemployer contributing entity in accordance with the provisions of
the Governmental Accounting Standards Board Statement No. 67 — Financial Reporting for Pension Plans,
(GASB 67).
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2024.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2024, the City reported a liability of $22,064,192 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportion of the net pension liability was based on the City's share of contributions to the pension plan
relative to the contributions of all MFPRSI participating employers. At June 30, 2023, the City's proportion
was 3.523511% which was an increase of 0.144427% from its proportions measured as of June 30, 2022.
64
For the year ended June 30, 2024, the City recognized pension expense of $2,962,813. At June 30, 2024,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Differences between expected and actual
experience
Change of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
City contributions and proportionate share of
contributions
City contributions subsequent to the measurement
date
Total
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 1,685,736 $ -
111,153 -
1,404,937 -
618,274 883,593
2,958,187 -
$ 6,778,287 $ 883,593
$2,958,187 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended
Total
June 30, 2025
$ (28,506)
June 30, 2026
(986,519)
June 30, 2027
3,208,429
June 30, 2028
704,075
June 30, 2029
39,028
$ 2,936,507
Actuarial Assumptions
The total pension liability in the June 30, 2023, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Rate of inflation
Salary increases
Investment rate of return
3.00 percent per annum
3.75 to 15.11 percent, including inflation
7.50 percent, net of pension plan investment
expense, including inflation
65
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial
experience study for the 10-year period ending June 30, 2022.
Postretirement mortality rates were based on the RP-2014 Blue Collar Combined Healthy Annuitant Table
with males set -forward zero years, females set -forward two years and disabled individuals set -forward three
years (male only rates), with generational projection of future mortality improvement with 50 percent of
Scale BB beginning in 2017.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The best estimates of geometric real
rates of return for each major asset class are summarized in the following table:
Long -Term Expected
Asset Class Real Rate of Return
Broad Fixed Income
4.9 %
Broad U.S. Equity
7.1
Global Equity
7.2
Broad Non -US Equity
7.4
Managed Futures
5.2
Core Real Estate
6.8
Opportunistic Real Estate
11.1
Global Infrastructure
6.9
Private Credit
10.1
Private Equity
12.1
Discount Rate
The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used
to determine the discount rate assumed that plan member contributions will be made at the current
contribution rate and the City contributions will be made at rates equal to the difference between actuarially
determined rates and the member rate. Based on those assumptions, the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivitv of Citv's Pronortionate Share of the Net Pension Liabilitv to Chances in the Discount
Rate
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.5%, as well as what the city's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is 1% lower (6.5%) or 1% higher (8.5%) than the current rate.
1% Decrease Discount Rate
(6.5%) (7.5%) 1% Increase (8.5%)
City's proportionate share of
the net pension liability: $ 38,641,662 $ 22,064,192 $ 8,341,300
66
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
MFPRSI financial report which is available on MFPRSI's website at www.mfprsi.org.
Payables to the Pension Plan
At June 30, 2024, there were no amounts due to MFPRSI.
Iowa Public Employees Retirement System (IPERS)
Plan Description
IPERS membership is mandatory for employees of the City, except for those covered by another retirement
system. Employees of the City are provided with pensions through a cost -sharing multiple employer
defined benefit pension plan administered by IPERS. IPERS issues a stand-alone financial report which is
available to the public by mail at 7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at
www.ipers.org.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits
A regular member may retire at normal retirement age and receive monthly benefits without an early -
retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more
years of covered employment, or when the member's years of service plus the member's age at the last
birthday equals or exceeds 88, whichever comes first. These qualifications must be met on the member's
first month of entitlement to benefits. Members cannot begin receiving retirement benefits before age 55.
The formula used to calculate a Regular member's monthly IPERS benefit includes:
• A multiplier based on years of service.
• The member's highest five-year average salary. For members with service before June 30, 2012,
the highest three-year average salary as of that date will be used if it is greater than the highest five-
year average salary.
If a member retires before normal retirement age, the member's monthly retirement benefit will be
permanently reduced by an early -retirement reduction. The early -retirement reduction is calculated
differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the
reduction is 0.25 percent for each month that the member receives benefits before the member's earliest
normal retirement age. For service earned starting July 1, 2012, the reduction is 0.50 percent for each
month that the member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same
for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began
receiving benefits prior to July 1990 receive a guaranteed dividend with their regular November benefit
payments.
Disability and Death Benefits
A vested member who is awarded federal Social Security disability or Railroad Retirement disability
benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not reduced for early
retirement. If a member dies before retirement, the member's beneficiary will receive a lifetime annuity or
a lump -sum payment equal to the present actuarial value of the member's accrued benefit or calculated with
a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the
benefit option the member selected at retirement.
67
Contributions
Contribution rates are established by IPERS following the annual actuarial valuation, which applies IPERS'
Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can
increase or decrease each year to 1 percentage point. IPERS Contribution Rate Funding Policy requires
that the actuarial contribution rate be determined using the "entry age normal" actuarial cost method and
the actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial
contribution rate covers normal cost plus the unfunded actuarial liability payment based on a 30-year
amortization period. The payment to amortize the unfunded actuarial liability is determined as a level
percentage of payroll, based on the Actuarial Amortization Method adopted by the Investment Board.
In fiscal year 2024, pursuant to the required rate, Regular members contributed 6.29% of pay and the City
contributed 9.44% for a total rate of 15.73%.
The City's total contributions to IPERS for the year ended June 30, 2024 were $3,497,329.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2024, the City reported a liability of $19,005,162 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportion of the net pension liability was based on the City's share of contributions to the pension plan
relative to the contributions of all IPERS participating employers. At June 30, 2023, the City's proportion
was 0.421058% which was an increase of 0.002493% from its proportions measured as of June 30, 2022.
For the year ended June 30, 2024, the City recognized pension expense of $1,679,808. At June 30, 2024,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual
experience $ 1,607,862
Change of assumptions
Net difference between projected and actual
earnings on pension plan investments 1,760,108
Changes in proportion and differences between
City contributions and proportionate share of
contributions 573,735
City contributions subsequent to the measurement
date 3,497,329
Total $ 7,439,034
$ 78,118
301
150,827
229,246
68
$3,497,329 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended
Total
June 30, 2025
$ (408,372)
June 30, 2026
(1,319,854)
June 30, 2027
4,428,433
June 30, 2028
871,806
June 30, 2029
140,446
$ 3,712,459
There were no non -employer contributing entities to IPERS.
Actuarial Assumptions
The total pension liability in the June 30, 2023, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Rate of inflation 2.60% per annum
(effective June 30, 2017)
Salary increases 3.25 to 16.25%, average, including inflation. Rates vary by
(effective June 30, 2017) membership group.
Investment rate of return 7.00% compounded annually, net of pension plan investment
(effective June 30, 2017) expense, including inflation
Wage growth 3.25% per annum based on 2.60% inflation and 0.65%
(effective June 30, 2017) real wage inflation
The actuarial assumptions used in the June 30, 2023, valuation was based on the results of a quadrennial
experience study covering the period July 1, 2017 through June 30, 2021.
Mortality rates were based on the PubG-2010 Mortality tables with future mortality improvements modeled
using MP-2021 generational adjustments.
69
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Domestic Equity
International Equity
Global Smart Beta Equity
Core Plus Fixed Income
Public Credit
Cash
Private Equity
Private Real Assets
Private Credit
Target Allocation
21.0 %
16.5
5.0
23.0
3.0
1.0
17.0
9.0
4.5
Total 100.0 %
Long -Term Expected
Real Rate of Return
4.56 %
6.22
5.22
2.69
4.38
1.59
10.44
3.88
4.60
Discount Rate
The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used
to determine the discount rate assumed employee contributions will be made at the contractually required
rate and that the contributions from the City will be made at contractually required rates, actuarially
determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be
available to make all projected future benefit payments to current active and inactive employees. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
Sensitivity of City's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.0%, as well as what the city's proportionate share of the net pension liability would be if
it were calculated using a discount rate that is 1% lower (6.0%) or 1% higher (8.0%) than the current rate.
1% Decrease Discount Rate
(6.0%) (7.0%) 1% Increase (8.0%)
City's proportionate share of
the net pension liability: $ 40,409,209 $ 19,005,162 $ 1,068,217
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
IPERS financial report which is available on IPERS' website at www.ipers.org.
Payables to the Pension Plan
At June 30, 2024, there were no amounts due to IPERS.
rig
8. Other Long-term Liabilities
Changes in Long -Term Liabilities - Notes Payable
Note Payable activity for the year ended June 30, 2024, was as follows:
Due Within
July 1, 2023 Issues Retirements June 30, 2024 One Year
Governmental activities: $ 210,784 $ - $ - $ 210,784 $ -
A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit
apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the
loan are 1%, interest only payments for twenty years with a final balloon payment of $210,784 due on
August 1, 2025.
Changes in Long -Term Liabilities - Employee Vested Benefits
Employee Vested Benefits activity for the year ended June 30, 2024, was as follows:
Due Within
July 1, 2023 Issues Retirements June 30, 2024 One Year
Governmental activities: $ 2,628,969 $ 1,479,883 $ 1,483,149 $ 2,625,703 $ 1,486,998
Business -type activities: $ 819,575 $ 543,327 $ 480,794 $ 882,108 $ 550,177
For the governmental activities, employee vested benefits are generally liquidated by the General Fund,
Community Development Block Grant Fund and Other Shared Revenue and Grants Fund.
Changes in Long -Term Liabilities - Subscription Based Information Technology Liability
Subscription liability activity for the year ended June 30, 2024, was as follows:
Governmental activities:
Business -type activities:
Due Within
July 1, 2023 Issues Retirements June 30, 2024 One Year
$ 316,763 $ 90,121 $ 152,586 $ 254,298 $ 144,715
$ - $ 206,809 $ 55,406 $ 151,403 $ 56,316
The City has entered into various subscription -based information technology agreements for software
programs. The agreements require annual payments varying from $5,000 to $65,000 over 3 to 12 years with
an interest rates of 2.99% or 3.23% and final payments due August 2027. During the year ended June 30,
2024, principal and interest paid were $207,992 and $9,288 respectively. Future principal and interest
payments as of June 30, 2024, are as follows:
r`i
Fiscal Year Ending
June 30
2025
2026
2027
2028
Total SBITA
Principal
Interest
$ 201,031
$ 12,470
118,408
6,271
66,254
2,750
20,008
646
Total $ 405,701 $ 22,137
Changes in Long -Term Liabilities - Landfill Closure Post -closure Care Costs
Landfill Closure Post -closure care activity for the year ended June 30, 2024, was as follows:
Due Within
July 1, 2023 Issues Retirements June 30, 2024 One Year
Business -type activities: $ 12,978256 $ 2,879,453 $ - $ 15,857,709 $ -
In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill
Closure and Post -closure Care Costs (the Statement). Under these rules, in addition to operating expenses
related to current activities of the landfill, an expense provision and related liability are being recognized
based on the future closure and post -closure care costs that will be incurred near or after the date the landfill
no longer accepts waste. The recognition of these landfill closure and post -closure care costs is based on
the amount of the landfill used during the year.
The estimated liability for landfill closure and post -closure care costs as of June 30, 2024, is $15,857,709,
which is based on 60.7% usage (filled) of the landfill and is included in accrued liabilities within the
Sanitation Fund. It is estimated that an additional amount of approximately $10,267,018 will be recognized
as closure and post -closure care expenses between the date of the balance sheet and the date the landfill is
expected to be filled to capacity by the year ended June 30, 2039. The estimated total current cost of the
landfill closure and post -closure care costs at June 30, 2024, was determined by a licensed professional
engineer and approximated at $26,124,727. It is based on the amount that would be paid if all equipment,
facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30,
2024. These amounts are based on an estimated post -closure care and monitoring period of 30 years,
consistent with current State Department of Natural Resources regulations. However, the actual cost of
closure and post -closure care may be higher due to inflation, changes in technology, or changes in landfill
laws and regulations.
The City is required by federal and state laws and regulations to provide some form of financial assurance
to finance closure and post -closure care. The City will meet its financial assurance obligations through the
issuance of general obligation bonds. As of June 30, 2024, the Sanitation Fund had $15,954,155 in related
equity in pooled cash and investments, at fair value designated for satisfaction of closure and post -closure
costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close
and monitor the landfill. The remaining portion of post -closure care costs, anticipated future inflation costs
and additional costs that might arise from changes in post -closure requirements (due to changes in
technology or more rigorous environmental regulations, for example) may need to be covered by charges
to future landfill users as well as City taxpayers.
Changes in Long -Term Liabilities — Other Postemployment Benefits (OPEB)
Plan Description: The City operates a single -employer self -funded medical and dental plan for all
employees, which is offered to current and retired employees and their dependents. Group insurance
benefits are established under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets
the criteria in paragraph 4 of GASB Statement No. 75.
W
All full-time employees who retire or terminate/resign and their eligible dependents are offered the
following post -employment benefit options:
Health insurance and dental insurance — The option of continuing with the City's health insurance plan
at the individual's expense. These benefits cease upon Medicare eligibility.
Life insurance — The option of converting the employee's City -paid policy to an individual policy at
the individual's expense with the City's life insurance carrier.
Long-term disability — For employees who terminate/resign and have been on the plan for a minimum
of one year, the option of converting the employee's City -paid group policy to a personal policy at the
individual's expense with the City's long-term disability insurance carrier.
The above options, while at the individual's own expense, are included within the City's overall insurance
package, which results in an implicit rate subsidy and an OPEB liability.
Retired participants must be age 55 or older at retirement. At June 30, 2024, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefit payments 57
Active employees 583
Total 640
Total OPEB Liability: The City's total OPEB liability of $9,523,167 was measured as of June 30, 2024
and was determined by an actuarial valuation as of that date.
Actuarial Assumptions: The total OPEB liability in the June 30, 2024 actuarial valuation was determined
using the following actuarial assumptions and the entry age normal actuarial cost method, applied to all
periods included in the measurement.
Rate of inflation 2.60% per annum
(effective June 30, 2024)
Rates of salary increases 3.25% per annum based on 2.60% inflation and 0.65%
(effective June 30, 2024) real wage inflation
Discount rate 4.21%, compounded annually, including inflation
(effective June 30, 2024)
Healthcare cost trend rate 8.00% initial rate decreasing by .5% annually to an ultimate
(effective June 30, 2024) rate of 4.50%
Discount Rate: The discount rate used to measure the total OPEB liability was 4.21% which reflects the
index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or
higher as of the measurement date.
Mortality rates for general participants are from the SOA Pub-2010 General Headcount Weighted Mortality
Table fully generational using Scale MP-2021. Mortality rates for public safety participants are from the
SOA Pub-2010 Public Safety Headcount Weighted Mortality Table fully generational using Scale MP-
2021. Mortality rates for surviving spouses are from the SOA Pub-2010 Continuing Survivor Headcount
Weighted Mortality Table fully generational using Scale MP-2021. Annual retirement probabilities are
based on varying rates by age and turnover probabilities mirror those used by IPERS and MFPRSI.
73
The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial
experience study with dates corresponding to those listed above.
Total OPEB
Liability
Total OPEB liability beginning of year $ 8,730,093
Changes for the year:
Service Cost 636,191
Interest 378,025
Difference between expected and actual
experience (418,135)
Changes in assumptions 627,644
Benefit payments (430,651)
Net changes 793,074
Total OPEB liability end of year $ 9,523,167
Changes of assumptions reflect a change in the discount rate from 4.13% in fiscal year 2023 to 4.21% in
fiscal year 2024.
Sensitivity of the City's Total OPEB Liability to Changes in the Discount Rate: The following presents
the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is 1% lower (3.21%) or 1% higher (5.21%) than the current discount
rate.
1% Decrease Discount Rate 1% Increase
(3.21%) (4.21%) (5.21%)
Total OPEB liability $ 10230,100 $ 9,523,167 $ 8,855,433
Sensitivity of the City's Total OPEB Liability to Changes in the Healthcare Cost Trend Rate: The
following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would
be if it were calculated using healthcare cost trend rate that is 1% lower (7.00%) or 1% higher (9.00%) than
the current healthcare cost trend rate.
1% Decrease Healthcare Cost 1% Increase
(7.0%) Trend Rate (8.0%) (9.00%)
Total OPEB liability $ 8,492,330 $ 9,523,167 $ 10,738,232
74
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB: For the year ended June 30, 2024, the City recognized OPEB expense of $1,021,723. At June 30,
2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following resources:
Differences between expected and actual
experience
Change of assumptions
Deferred Outflows
of Resources
$ 739,773
1,132,804
Deferred Inflows
of Resources
(1,005,001)
(1,420,541)
Total $ 1,872,577 $ (2,425,542)
The amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized as OPEB expense as follows:
Year Ended Total
June 30, 2025
$ 7,507
June 30, 2026
7,507
June 30, 2027
7,512
June 30, 2028
(53,041)
June 30, 2029
(191,686)
Thereafter
(330,764)
$ (552,965)
For the governmental activities, OPEB liability is generally liquidated by the General Fund, Community
Development Block Grant Fund and Other Shared Revenue and Grants Fund
9. Fund Equity
Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based
on the extent to which the government honors constraints on the specific purposes for which amounts in
those funds can be spent.
• The Nonspendable classification contains amounts not in spendable form or legally or contractually
required to be maintained intact.
• Restricted amounts contain restraint on their use externally imposed by creditors, grantors,
contributors, or laws or regulations of other governments; or imposed by law through constitutional
provisions or enabling legislation.
Committed amounts can only be used for specific purposes imposed by formal action of the
government's highest level of decision -making authority. The highest level of decision -making
authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance
commitment.
rV
• Amounts intended to be used for specific purposes are Assigned. Assignments should not cause
deficits in the Unassigned fund balance. The Finance Director has been delegated authority by the
City Council through a resolution to assign amounts to be used for specific purposes.
• Unassigned fund balance is the residual classification for the General Fund. The General Fund is
the only fund that would report a positive amount in unassigned fund balance. Residual deficit
amounts of other governmental funds would also be reported as unassigned.
The City would use Restricted fund balances first, followed by Committed resources, and then Assigned
resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned
resources first to defer the use of these other classified funds.
Conilmnents of Fund Balance
Rumdto nearest $
Nonspendable:
Perpetual Care Principal
Inventory
Property Held for Resale
Total Nonspendable
Restricted for:
Public Safety
Debt Service
GO Bond Projects
State Funding
Grant Agreement
Affordable Housing
Economic Development
Notes Receivable
Public Safety Employee
Benefits
Other Restricted
Total Restricted
Assigned to:
Library Programs
Replacement and Acquisition
Reserves
Other Assigned
Total Assigned
Unassigned:
Total Fund Balances
Bridge,
Other Street and
Shared Traffic Other
Revenue and Employee Other Control Debt Governmental
General Grants Benefits Construction Construction Service Funds Total
$ 69,000 $ -
- 273,990
6,335,000
6,404,000 273,990
69,000
- - - - 273,990
6,335,000
6,677,990
511,756 - - - - - - 511,756
- - - - - 7,607,584 - 7,607,584
- - - 12,049,390 16,708,258 - - 28,757,648
- 6,740,530 - - - - - 6,740,530
- - - - - - 3,312,736 3,312,736
- 7,372,091 - - - - - 7,372,091
- - - - - - 870,721 870,721
1,329,650 - - - - - - 1,329,650
- - 3,577,051 - - - - 3,577,051
613,696 2,969,655 633,511 4,216,862
2,455,102 17,082,276 3,577,051 12,049,390 16,708,258 7,607,584 4,816,968 64,296,629
1,399,656 - - - - - - 1,399,656
17,036,863 - - - - - - 17,036,863
888 888
18,437,407 18,437,407
46,148,462 (3,480) 46,144,982
$ 73,444,971 $ 17,356,266 $ 3,577,051 $ 12,049,390 $ 16,708,258 $ 7,607,584 $ 4,813,488 $ 135,557,008
The nonmajor governmental fund, Economic Development Fund, has a deficit unassigned fund balance of
$3,480. The deficit will be resolved with future property taxes.
M61,
10. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City
established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks
of loss. During the year ended June 30, 2024 the City purchased property, liability, and workers'
compensation insurance under the program that provides for a $100,000 self -insured retention per
occurrence on property losses except for wind damage losses. The wind damage deductible is the greater
of $250,000 or 2% of the building value. A $500,000 self -insured retention per occurrence on liability, and
a zero self -insured retention on workers' compensation losses for all employees except Fire Department
employees. Workers' compensation losses for Fire Department employees are fully self -funded. The
liability insurance provides coverage for claims in excess of the aforementioned self -insured retention up
to a maximum of $21,000,000 annual aggregate of losses paid. Settled claims have not exceeded this
commercial coverage in any of the past three fiscal years. The operating funds pay annual premiums to the
Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self -insured
retention amounts and any uninsured losses.
The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk
Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make
payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and
current -year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities balance
includes a claims liability at June 30, 2024 based on the requirements of GASB Statement No. 10, as
amended, which requires that a liability for claims be reported if information prior to the issuance of the
financial statements indicates that it is probable that a liability has been incurred at the date of the financial
statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund's
claims liability amount for property, liability, and workers' compensation for the years ended June 30, 2024
and 2023 are as follows:
2022 - 2023
2023-2024
Beginning -of -
Fiscal -Year
Liability
2,741,000 $
2,443,000
Current -Year
Claims and
Changes in
Estimates
255,000
258,000
Claim
Payments
$ 553,000 $
960,000
Balance at
Fiscal
Year -End
2,443,000
1,741,000
Also, the City is partially self -insured, through stop -loss insurance, for employee health care coverage,
which is available to all of its permanent employees. This insurance provides stop -loss coverage for claims
in excess of $125,000 per employee with an aggregate stop -loss of $15,344,182. The operating funds are
charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual
medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund's
claims liability amount for health care coverage for the years ended June 30, 2024 and 2023 are as follows:
Beginning -of -
Fiscal -Year
Liability
Current -Year
Claims and
Balance at
Changes in Claim Fiscal
Estimates Payments Year -End
2022 —2023 $ 583,000 $ 10,532,000 $ 10,490,000 $ 625,000
2023-2024 625,000 10,796,000 10,766,000 655,000
77
11. Commitments and Contingencies
Contractual Commitments
The total outstanding contractual commitments as of June 30, 2024 are as follows:
Fund Project Amount
Bridge, street and traffic Paving and Bridge Construction,
control construction Engineering Design and Consulting $ 11,598,623
Other construction Public Works & Culture and Recreation Construction 3,249,430
Parking Parking Facility Restoration Repair 448,158
Wastewater Sewer Construction & Influent Rake Replacement 5,124,267
Water Water Construction & Peninsula Well Field Power
Redundancy Project 642,962
Transit Transit Bus Sign Replacements/Transit Amenities 212,723
Airport Runway Obstruction Mitigation & Runway Relocation 577,151
Lanfill Facility Replacement and Landfill Gas
Landfill Infrastructure 120,153
Stormwater Stormwater System Improvements & Storm Sewer 806,785
Replacements
$ 22,780,252
Developer Commitments
In order to encourage development within designated TIF districts, the City Council has approved developer
grants to 8 different projects. The grants are to be paid only after certain conditions have been met by each
project developer, and are to be paid over many years in the form of a rebate of a predetermined percentage
of future property taxes generated by the property. Currently, it is estimated that outstanding commitments
totaling $29,620,446 exist, of which $2,986,590 is expected to be paid in the next fiscal year. These items
are expensed in the period in which they are paid. There were payments made in the current fiscal year in
the amount of $2,163,842. No liability is recognized due to the fact that the agreements are conditional and
the payments are to be funded by future property taxes receivable on the project.
Letter of Credit
As of June 30, 2024, the City has an unused letter of credit totaling $575,000. This letter of credit, issued
by MidWestOne Bank, serves as a financial guarantee for self -funded worker's compensation claims. This
letter of credit is to expire on June 27, 2025, and there are no fees associated with its maintenance.
The City does not anticipate any financial obligations arising from this letter of credit, as it remains unused
as of the reporting date. Management will monitor this letter of credit and ensure compliance with terms
set forth by MidWestOne Bank.
78
12. Contingent Liabilities
Litigation
The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged
improper actions by City employees, with such lawsuits typically involving claims of improper police
action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination.
Total damages claimed are substantial; however, it has been the City's experience that such actions are
settled for amounts substantially less than claimed amounts. The City's management estimates that the
potential claims against the City, not covered by various insurance policies, would not materially affect the
financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit)
to cover uninsured judgments against the City.
13. Tax Abatements
Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax
revenues that results from an agreement between one or more governments and an individual or entity in
which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and
(b) the individual or entity promises to take a specific action after the agreement has been entered into that
contributes to economic development or otherwise benefits the governments or the citizens of those
governments.
City Tax Abatements
The City provides tax abatements for urban renewal and economic development projects with tax increment
financing as provided for in Chapters 15A and 403 of the Code of Iowa. For these types of projects, the
City enters into agreements with developers which require the City, after developers meet the terms of the
agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an economic
development grant or to pay the developers a predetermined dollar amount. No other commitments were
made by the City as part of these agreements.
For the year ended June 30, 2024, $821,419.73 of property tax was diverted from the City under the urban
renewal and economic development projects.
Tax Abatements of Other Entities
Property tax revenues of the City were not reduced by any amount for the year ended June 30, 2024 under
agreements entered into by any entities.
14. New Governmental Accounting Standards Board (GASB) Standards
The City adopted the following statements during the year ended June 30, 2024:
Statement No. 100, Accounting Changes and Error Corrections — an Amendment of GASB Statement No.
62. The primary objective of this Statement is to enhance accounting and financial reporting requirements
for accounting changes and error corrections to provide more understandable, reliable, relevant,
consistent, and comparable information for making decisions or assessing accountability.
The implementation of the above statement did not have a material impact on the City's Financial
Statements.
The Governmental Accounting Standards Board (GASB) has issued four statements not yet implemented
by the City. The statements, which might impact the City's financial statements, are as follows:
79
Statement No. 101, Compensated Absences, will be effective for fiscal year ending June 30, 2025. The
objective of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences. That objective is achieved by
aligning the recognition and measurement guidance under a unified model and by amending certain
previously required disclosures.
Statement No. 102, Certain Risk Disclosures, will be effective for fiscal year ending June 30, 2025. The
objective of this Statement is to provide users of government financial statements with essential
information about risks related to a government's vulnerabilities due to certain concentrations or
constraints.
Statement No. 103, Financial Reporting Model Improvements, will be effective for the fiscal year ending
June 30, 2025. The objective of this Statement is to improve key components of the financial reporting
model to enhance its effectiveness in providing information that is essential for decision making and
assessing a government's accountability. This Statement also address certain application issues.
Statement No. 104, Disclosure of Certain Capital Assets, will be effective for the fiscal year ending June
30, 2026. The objective of this Statement is to provide users of government financial statements with
essential information about certain types of capital assets.
The City's management has not yet determined the effect these statements will have on the City's financial
statements.
80
81
City of Iowa City, Iowa
Budgetary Comparison Schedule
Budget and Actual - All Governmental Funds and Enterprise Funds
Budgetary Basis
Required Supplementary Information
For the Year Ended June 30, 2024
(dollar amounts expressed in thousands)
Governmental
Fund Types Enterprise Fund
Actual Budgetary Types Actual Total Actual
Basis Budgetary Basis Budgetary Basis
Revenues:
Property taxes
$ 66,212 $
$
66,212
Delinquent property taxes
13
13
Tax increment financing taxes
4,305
4,305
Other city taxes
3,822
3,822
Special assessments
-
-
Licenses and permits
3,036
8
3,044
Intergovernmental
19,407
19,934
39,341
Charges for services
6,898
44,800
51,698
Use of money and property
5,946
5,787
11,733
Miscellaneous
2,567
887
3,454
Total revenues
112,206
71,416
183,622
Expenditures/Expenses:
Public safety
29,663
29,663
Public works
12,255
12,255
Health and social services
697
697
Culture and recreation
16,899
16,899
Community and economic development
16,723
16,723
General government
12,627
12,627
Debt service
13,190
13,190
Capital outlay
20,533
- 20,533
Business -type
-
71,617 71,617
Total expenditures/expenses
122,587
71,617 194,204
Excess (deficiency) of revenues over
(under) expenditures/expenses (10,381) (201) (10,582)
Other financing sources and uses, net 6,495 6,164 12,659
Net change in fund balances (3,886) 5,963 2,077
Balances, beginning of year 133,773 103,606 237,379
Balances, end of year $ 129,887 $ 109,569 $ 239,456
See Note to Required Supplementary Information.
82
Budgeted Amounts
Final to Actual
Variance -
Positive
Original Final (Negative)
$ 66,313 $
66,313 $
(101)
-
-
13
4,083
4,060
245
3,596
3,597
225
1
1
(1)
2,034
2,034
1,010
36,116
54,055
(14,714)
51,348
50,485
1,213
3,172
3,172
8,561
10,581
5,011
(1,557)
177,244
188,728
(5,106)
30,750
31,501
1,838
12,746
13,089
834
697
697
-
17,501
17,789
890
10,406
31,083
14,360
12,632
14,312
1,685
13,211
13,246
56
31,178
51,922
31,389
90,987
137,656
66,039
220,108
311,295
117,091
(42,864) (122,567) 111,985
42,980 43,872 (31,213)
116 (78,695) $ 80,772
157,640 237,379
$ 157,756 $ 158,684
83
City of Iowa City, Iowa
Budgetary Comparison Schedule
Budget to GAAP Reconciliation
Required Supplementary Information
For the Year Ended June 30, 2024
(dollar amounts expressed in thousands)
Governmental Fund Types
Accrual Modified Accrual
Budget Basis Adjustments Basis
Revenues $
112,206 $
7,259 $
119,465
Expenditures
122,587
(14,708)
107,879
Net
(10,381)
21,967
11,586
Other financing sources and uses, net
6,495
(5,807)
688
Beginning Fund Balances
133,773
(10,489)
123,284
Ending Fund Balances $
129,887 $
5,671 $
135,558
Enterprise Fund Types
Accrual Accrual
Budget Basis Adjustments Basis
Revenues $
71,416 $
1,097 $
72,513
Expenditures
71,617
459
72,076
Net
(201)
638
437
Other financing sources and uses, net
6,164
3,810
9,974
Beginning Fund Balances
103,606
309,983
413,589
Ending Fund Balances $
109,569 $
314,431 $
424,000
See Note to Required Supplementary Information
84
City of Iowa City, Iowa
Note to Required Supplementary Information - Budgetary Reporting
For the Year Ended June 30, 2024
In accordance with the Code of Iowa, the City Council annually adopts a budget following required public
notice and hearing which includes all funds, except internal service funds and custodial funds. The budget
basis of accounting is a modified accrual basis. The annual budget may be amended during the year
utilizing similar statutorily prescribed procedures.
Formal and legal budgetary control is based upon nine major classes of expenditures known as functions,
not by fund or fund type. These nine functions are: public safety, public works, health and social services,
culture and recreation, community and economic development, general government, debt service, capital
outlay and business -type. The legal level control is at the aggregated function level, not at the fund or fund
type level.
During the year, budget amendments increased budgeted revenues by $11,484,000 and expenditures by
$91,187,000. The budget amendments were primarily due to changes in the breadth and timing of capital
improvement projects, which the City budgets in full during the initial year of the projects and amends
future year budgets for carryover.
85
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Proportionate
Share of the Net Pension Liability
Municipal Fire and Police Retirement System of Iowa
For the Last Ten Years
(amounts expressed in thousands)
City's proportion of the net pension liability
City's proportionate share of the net pension liability
City's covered payroll
City's proportionate share of the net pension liability
as a percentage of its covered payroll
Plan fiduciary net position as a percentage of the
total pension liability
2024
2023
2022
2021
3.523511%
3.379080%
3.529220%
3.621079%
$ 22,064
$ 18,976
$ 7,926
$ 28,882
12,590
11,413
11,468
11,503
175.25%
166.27%
69.11%
251.08%
83.53%
84.62%
93.62%
76.47%
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of
June 30 of the preceding fiscal year.
See Notes to Required Supplementary Information - Pension Liability.
86
2020
2019
2018
2017
2016
2015
3.684880%
3.706970%
3.648635%
3.697128%
3.704972%
3.778137%
$ 24,170
$ 22,071
$ 21,398
$ 23,117
$ 17,406
$ 13,696
11,155
10,743
10,347
10,019
9,716
9,648
216.67%
205.45%
206.80%
230.73%
179.15%
141.96%
79.94%
81.07%
80.60%
78.20%
83.04%
86.27%
87
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Contributions
Municipal Fire and Police Retirement System of Iowa
For the Last Ten Years
(amounts expressed in thousands)
2024
2023
2022
2021
Statutorily required contributions
$ 2,958
$ 3,009
$ 2,988
$ 2,903
Contributions in relation to the
statutorily required contribution
(2,958)
(3,009)
(2,988)
(2,903)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
City's covered payroll
$ 12,873
$ 12,590
$ 11,413
$ 11,468
Contributions as a percentage of
covered payroll
22.98%
23.90%
26.18%
25.31%
See Notes to Required Supplementary Information - Pension Liability.
88
2020
2019
2018
2017
2016
2015
$ 2,808
$ 2,902
$ 2,759
$ 2,682
$ 2,782
$ 2,955
(2,808)
(2,902)
(2,759)
(2,682)
(2,782)
(2,955)
$ 11,503
$ 11,155
$ 10,743
$ 10,347
$ 10,019
$ 9,716
24.41%
26.02%
25.68%
25.92%
27.77%
30.41%
89
City of Iowa City, Iowa
Notes to Required Supplementary Information - Pension Liability
Municipal Fire and Police Retirement System of Iowa
Year ended June 30, 2024
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions:
The 2018 valuation changed postretirement mortality rates on the RP-2014 Blue Collar Healthy
Annuitant Table with males set -forward zero years, females set -forward two years and disabled
individuals set -forward three years (male only rates), with generational projection of future mortality
improvements with 50% of Scale BB beginning in 2017.
The 2017 valuation added five years projection of future mortality improvement with Scale BB.
The 2016 valuation changed postretirement mortality rates to the RP-2000 Blue Collar Combined
Healthy Mortality Table with males set -back two years, females set -forward one year and disabled
individuals set -forward one year (male only rates), with no projection of future mortality improvement.
The 2015 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This
resulted in weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group
Annuity Morality Table.
The 2014 valuation phased in the 1994 Group Annuity Mortality Table for postretirement mortality. This
resulted in weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994 Group
Annuity Morality Table.
90
4
City of Iowa City, Iowa
Required Supplementary Information -Schedule of the City's Proportionate Share of the Net Pension Liability
Iowa Public Employees' Retirement System
For the Last Ten Years
(amounts expressed in thousands;
City's proportion of the net pension liability
City's proportionate share of the net pension liability
City's covered payroll
City's proportionate share of the net pension liability
as a percentage of its covered payroll
Plan fiduciary net position as a percentage of the
total pension liability
2024
2023
2022
2021
0.4210580%
0.4185650%
-0.1604936%
0.3947745%
$ 19,005
$ 15,814
$ 554
$ 27,732
37,000
33,752
32,047
31,345
51.36%
46.85%
1.73%
88.47%
90.13%
90.34%
100.81%
82.90%
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of
June 30 of the preceding fiscal year.
See Notes to Required Supplementary Information - Pension Liability.
2020
2019
2018
2017
2016
2015
0.4053890%
0.4016869%
0.3968158%
0.3962696%
0.4159256%
0.4378904%
$ 23,475
$ 25,420
$ 26,433
$ 24,938
$ 20,549
$ 17,366
30,852
30,190
29,619
28,448
28,495
28,654
76.09%
84.20%
89.24%
87.66%
72.11%
60.61%
85.45%
83.62%
82.21%
81.82%
85.19%
87.61%
93
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Contributions
Iowa Public Employees' Retirement System
For the Last Ten Years
(amounts expressed in thousands)
2024
2023
2022
2021
Statutorily required contributions
$ 3,497
$ 3,493
$ 3,186
$ 3,025
Contributions in relation to the
statutorily required contribution
(3,497)
(3,493)
(3,186)
(3,025)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
City's covered payroll
37,048
37,000
$ 33,752
$ 32,047
Contributions as a percentage of
covered payroll
9.44%
9.44%
9.44%
9.44%
See Notes to Required Supplementary Information - Pension Liability.
94
2020
2019
2018
2017
2016
2015
$ 2,959
$ 2,912
$ 2,696
$ 2,645
$ 2,540
$ 2,545
(2,959)
(2,912)
(2,696)
(2,645)
(2,540)
(2,545)
$ 31,345
$ 30,852
$ 30,190
$ 29,619
$ 28,448
$ 28,495
9.44%
9.44%
8.93%
8.93%
8.93%
8.93%
4i
City of Iowa City, Iowa
Notes to Required Supplementary Information - Pension Liability
Iowa Public Employees' Retirement System
Year ended June 30, 2024
Changes ofbenefit terms:
There are no significant changes in benefit terms.
Changes of assumptions:
The 2022 valuation incorporated the following refinements after a quadrennial experience
study:
• Changed mortality assumptions to the PubG-2010 mortality tables with mortality
improvements modeled using Scale MP-2021.
• Adjusted retirement rates.
• Lowered disability rates.
• Adjusted termination rates.
The 2018 valuation implemented the following refinements as a result of an experience
study dated June 28, 2018:
• Changed mortality assumptions to the RP-2014 mortality tables with mortality
improvements modeled using Scale MP-2017.
• Adjusted retirement rates.
• Lowered disability rates
• Adjusted the probability of a vested Regular member electing to receive a deferred
benefit.
• Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements as a result of an experience
study dated March 24, 2017:
• Decreased the inflation assumption from 3.00% to 2.60%.
• Decreased the assumed rate of interest on member accounts from 3.75% to 3.5%
per year.
• Decreased the discount rate from 7.50% to 7.00%.
• Decreased the wage growth assumption from 4.00% to 3.25%.
• Decreased the payroll growth assumption from 4.00% to 3.25%.
The 2014 valuation implemented the following refinements as a result of a quadrennial
experience study:
• Decreased the inflation assumption from 3.25% to 3.00%
• Decreased the assumed rate of interest on member accounts from 4.00% to
3.75% per year.
• Adjusted male mortality rates for retirees in the Regular membership group.
• Moved from an open 30 year amortization period to a closed 30 year amortization
period for the UAL beginning June 30, 2014. Each year thereafter, changes in the
UAL from plan experience will be amortized on a separate closed 20 year period.
City of Iowa City, Iowa
Required Supplementary Information - Schedule of Changes in the City's Total OPEB Liability, Related Ratios and Notes
For the Last Seven Years
(amounts expressed in thousands)
2024 2023 2022 2021 2020
2019 2018
Service Cost
$ 636
$ 617
$ 823
$ 734
$ 633
$ 553
$ 502
Interest
378
353
226
240
323
297
245
Difference between expected and actual experience
(418)
(118)
(254)
459
(483)
1,161
(377)
Changes in assumptions
628
(25)
(1,942)
305
(83)
225
982
Benefit payments
(431)
(221)
(427)
(667)
(641)
(948)
(174)
Net change in total OPEB liability
793
606
(1,574)
1,071
(251)
1,288
1,178
Total OPEB liability beginning of year
8,730
8,124
9,698
8,627
8,878
7,590
6,412
Total OPEB liability end of year
$ 9,523
$ 8,730
$ 8,124
$ 9.698
$ 8,627
$ 8,878
$ 7,590
City's covered -employee payroll
$ 49,921
$ 49,590
$ 44.134
$ 43,515
$ 42,848
$ 42,007
$ 40,933
Total OPEB liability as a percentage of
covered -employee payroll
19.08 %
17.60 %
18.41 %
22.29 %
20.13 %
21.13 %
18.54
Note: GASH Statement No. 75 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the City will present information for those years for which information is available.
Note: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GAS Statement No. 75.
Changes ofbenefit terms.'
There were no significant changes of benefit terms.
Changes ofassumnttons.'
Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The
following are the discount rates used in each period.
Year ended June 30, 2024
4.21
Year ended June 30, 2023
4.13
Year ended June 30, 2022
4.09
Year ended June 30, 2021
2.19
Year ended June 30, 2020
2.66
Year ended June 30, 2019
3.51
Year ended June 30, 2018
3.87
Health care trend rates have been updated to an initial trend rate of 8.0 % decreasing by 0.5 % annually to an
ultimate rate of 4.5%.
97
98
Nonmaj or Governmental Funds
Special Revenue Funds
Special Revenue Funds account for revenues derived from specific sources that are required to be accounted
for as separate funds. The funds in this category and their purpose are as follows:
Economic Development Fund — accounts for revenue and expenditures of economic development
activities.
Community Development Block Grant Fund — accounts for revenue from the U.S. Department of
Housing and Urban Development's Community Development Block Grant programs.
Metropolitan Planning Organization of Johnson County Fund — accounts for the financial activities of
the metropolitan/rural cooperative planning organization.
99
City of Iowa City, Iowa
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
(amounts expressed in thousands)
Special Revenue
Metropolitan
Community
Planning
Development
Organization
Economic Block
of Johnson
Development Grant
County
Total
Assets
Equity in pooled cash and investments
$ 839 $ -
$ 605
$
1,444
Receivables:
Property tax
745 -
-
745
Interest
21 -
5
26
Notes
- 3,313
-
3,313
Due from other governments
- 92
71
163
Total assets
$ 1,605 $ 3,405
$ 681
$
5,691
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities
Accounts payable
$ 75 $ 7
$ 35
$
117
Accrued liabilities
- -
12
12
Due to other funds
- $ 85
-
85
Total liabilities
75 92
47
214
Deferred Inflows of Resources
Unavailable revenues:
Succeeding year property taxes
662 -
-
662
Total deferred inflows of resources
662 -
-
662
Fund Balances
Restricted
871 3,313
634
4,818
Unassigned
(3) -
-
(3)
Total fund balances
868 3,313
634
4,815
Total liabilities, deferred inflows
of resources and fund balances
$ 1,605 $ 3,405
$ 681
$
5,691
100
City of Iowa City, Iowa
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Special Revenue
Metropolitan
Community
Planning
Development
Organization
Economic Block
of Johnson
Development Grant
County
Revenues
Property taxes
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
Expenditures
Current:
Community and economic development
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources
and (uses)
Net change in fund balances
Fund Balances, Beginning
Fund Balances, Ending
$ 4,917 $ - $ - $
51 1,103 401
114 26 31
4,917
1,555
171
2,822 1,331 903 5,056
2,822 11331 903 5,056
2,260 (76) (327) 1,857
159 -
(1,734) -
(1,575) -
685 (76)
183 3,389
$ 868 $ 3,313 $
424 583
- (1,734)
424 (1,151)
97 706
537 4,109
634 $ 4,815
Nonmaj or Enterprise Funds
Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar
to a private business enterprise, and where the costs of providing services to the general public on a continuing basis
are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic
determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes. The funds in this category are as follows:
Airport Fund — accounts for the operation and maintenance of the airport facility.
Parking Fund — accounts for the operation and maintenance of the "on" and "off' street public parking facilities.
103
City of Iowa City, Iowa
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2024
(amounts expressed in thousands)
Airport
Parking
Total
Assets
Current assets:
Equity in pooled cash and investments $
99
$ 3,926
$ 4,025
Receivables:
Accounts and unbilled usage
29
46
75
interest
-
33
33
Lease
127
-
127
Due from other governments
754
22
776
Total current assets
1,009
4,027
5,036
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments
9
304
313
Lease receivable
535
-
535
Capital assets:
Land
11,995
3,489
15,484
Buildings
5,458
42,664
48,122
Improvements other than buildings
483
328
811
Machinery and equipment
531
467
998
Infrastructure
18,687
-
18,687
Accumulated depreciation
(15,467)
(27,032)
(42,499)
IT subscriptions
349
349
Accumulated amortization
-
(116)
(116)
Construction in progress
845
29
874
Total noncurrent assets
23,076
20,482
43,558
Total assets
24,085
24,509
48,594
Deferred Outflows of Resources
Pension related deferred outflows
16
258
274
OPEB related deferred outflows
3
61
64
Total deferred outflows of resources
19
319
338
Liabilities
Current liabilities
Accounts payable
10
136
146
Contracts payable
400
270
670
Accrued liabilities
2
35
37
Employee vested benefits
5
76
81
Due to other funds
126
-
126
Total current liabilities
543
517
1,060
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits
8
1
9
Advances from other funds
-
1,010
1,010
Employee vested benefits
4
44
48
Net pension liability
39
655
694
Other post employment benefits obligation
14
314
328
Total noncurrent liabilities
65
2,024
2,089
Total liabilities
608
2,541
3,149
Deferred Inflows of Resources
Lease related deferred inflows
662
-
662
Pension related deferred inflows
1
8
9
OPEB related deferred inflows
3
80
83
Total deferred inflows of resources
666
88
754
Net Position
Net investment in capital assets
22,132
19,908
42,040
Restricted for future improvements
100
304
404
Unrestricted
598
1,987
2,585
Total net position
$ 22,830 $
22,199 $
45,029
I[K!
City of Iowa City, Iowa
Combining Statement of Revenues, Expenses
and Changes in Fund Net Position
Nonmajor Enterprise Funds
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Operating Revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating Expenses:
Personal services
Commodities
Services and charges
Depreciation & amortization
Total operating expenses
Operating loss
Nonoperating Revenues (Expenses):
Operating grants
Lease revenue
Interest income
Total nonoperating revenues
Loss before capital contributions
and transfers
Capital contributions
Transfers in
Transfers out
Change in net position
Net Position, Beginning
Net Position, Ending
Airport Parking
$ 281 $ 5,459 $
5,740
107
2,439
2,546
22
578
600
537
1,771
2,308
666
4,788
5,454
1,022
1,342
2,364
1,688
6,130
7,818
(1,376)
(657)
(2,033)
117
-
117
115
-
115
(1,128) (444)
(1,572)
632 18
650
218 60
278
- (75)
(75)
(278) (441)
(719)
$ 22,830 $ 22,199 $ 45,029
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Airport Parking Total
Cash Flows From Operating Activities
Receipts from customers and users
$
302
$
5,477
$
5,779
Payments to suppliers
(567)
(3,016)
(3,583)
Payments to employees
(109)
(2,387)
(2,496)
Net cash flows used for operating activities
(374)
74
(300)
Cash Flows From Noncapital Financing Activities
Operating grants received
118
2
120
Transfers from other funds
218
60
278
Transfers to other funds
-
(75)
(75)
Advances from other funds
-
-
-
Repayment of advances from other funds
(85)
(379)
(464)
Net cash flows from (used for) noncapital financing activities
251
(392)
(141)
Cash Flows From Capital and Related Financing
Activities
Capital grants received
315
-
315
Lease revenues received
115
-
115
Acquisition and construction of property and equipment
(335)
(238)
(573)
Net cash flows used for capital and related financing activities
95
(238)
(143)
Cash Flows From Investing Activities
Interest on investments
16
196
212
Net increase (decrease) in cash and cash equivalents
(12)
(360)
(372)
Cash and Cash Equivalents, Beginning
120
4,590
4,710
Cash and Cash Equivalents, Ending
$
108
$
4,230
$
4,338
Reconciliation of operating loss to net cash
flows from (used for) operating activities:
Operating loss
$
(1,376)
$
(657)
$
(2,033)
Adjustments to reconcile operating loss to
net cash flows used for operating activities:
Depreciation expense
1,022
1,342
2,364
Changes in:
Receivables:
Accounts and unbilled usage
(7)
3
(4)
Due from other governments
(3)
-
(3)
Accounts payable
(8)
(667)
(675)
Accrued liabilities
-
10
10
Net pension liability
8
159
167
Deferred outflows of resources
(8)
(122)
(130)
Deferred inflows of resources
(4)
(53)
(57)
Other post employment benefits asset/obligation
1
43
44
Total adjustments
1,002
731
1,733
Net cash flows used for operating activities
$
(374)
$
74
$
(300)
Noncash Investing, Capital, and Financing Activities:
Capital grants not yet received
$
631
$
18
$
649
Operating grants not yet received
$
120
$
-
$
120
106
Internal Service Funds
Internal Service Funds account for goods and services provided by one department to other City departments
on a cost -reimbursement basis. The funds in this category are:
Equipment Maintenance Fund — accounts for the provision of maintenance for City vehicles, equipment and
vehicle rental from a central vehicle pool, and two-way radios provided to other City departments.
Central Services Fund — accounts for the support services of photocopying, mail and overnight shipping
provided to other City departments.
Loss Reserve Fund — accounts for the property, liability, Workers' Compensation and health insurance
premiums and claims activity for City departments, including the self -insured retention portion.
Information Technology Fund — accounts for the accumulation and allocation of costs associated with
telecommunications and data processing, including the operation and replacement of equipment.
107
City of Iowa City, Iowa
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
(amounts expressed in thousands)
Equipment
Central
Loss
Information
Maintenance
Services
Reserve
Technology
Total
Assets
Current assets:
Equity in pooled cash and investments
$ 22,991
$ 934
$ 23,071
$ 4,211
$ 51,207
Receivables:
Accounts and unbilled usage
122
-
53
4
179
Interest
109
8
166
32
315
Lease
-
-
-
20
20
Due from other governments
17
-
17
Inventories
670
-
-
670
Total current assets
23,909
942
23,290
4,267
52,408
Noncurrent assets:
Capital assets:
Land
685
-
685
Buildings
1,370
183
1,553
Improvements other than buildings
50
-
-
-
50
Machinery and equipment
26,704
147
19
1,858
28,728
Infrastructure
-
-
-
3,634
3,634
Accumulated depreciation
(15,439)
(76)
(19)
(2,336)
(17,870)
IT subscriptions
-
-
651
651
Accumulated amortization
-
(534)
(534)
Construction in progress
832
-
498
1,330
Total noncurrent assets
14,202
71
-
3,954
18,227
Total assets
38,111
1,013
23,290
8,221
70,635
Deferred Outflows of Resources
Pension related deferred outflows
170
5
34
198
407
OPEB related deferred outflows
30
3
3
30
66
Total deferred outflows of resources
200
8
37
228
473
Liabilities
Current liabilities:
Accounts payable
268
7
59
151
485
Accrued liabilities
21
-
2,401
27
2,449
Employee vested benefits
40
1
9
29
79
Subscription liability
-
-
-
59
59
Total current liabilities
329
8
2,469
266
3,072
Noncurrent liabilities:
Employee vested benefits
29
-
7
24
60
Net pension liability
431
14
87
507
1,039
Other post employment benefits liability
150
14
14
150
328
Total noncurrent liabilities
610
28
108
681
1,427
Total liabilities
939
36
2,577
947
4,499
Deferred Inflows of Resources
Lease related deferred inflows
-
-
-
20
20
Pension related deferred inflows
5
-
1
6
12
OPEB related deferred inflows
38
4
3
38
83
43
4
4
64
115
Net Position
Net investment in capital assets
14,202
71
-
3,895
18,168
Unrestricted
23,127
910
20,746
3,543
48,326
Total net position
$ 37,329
$ 981
$ 20,746
$ 7,438
$ 66,494
108
City of Iowa City, Iowa
Combining Statement of Revenues, Expenses
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Equipment Central Loss Information
Maintenance Services Reserve Technology
Operating Revenues:
Total
Charges for services
$ 7,931 $
181 $
14,977 $
2,791 $
25,880
Total operating revenues
7,931
181
14,977
2,791
25,880
Operating Expenses:
Personal services
1,067
36
352
1,417
2,872
Commodities
2,169
5
1
833
3,008
Services and charges
812
114
12,014
597
13,537
4,048
155
12,367
2,847
19,417
Depreciation & amortization
2,259
28
-
363
2,650
Total operating expenses
6,307
183
12,367
3,210
22,067
Operating income (loss)
1,624
(2)
2,610
(419)
3,813
Nonoperating Revenues:
Gain (loss) on disposal of capital assets
204
-
-
3
207
Lease Revenue
-
-
-
20
20
Interest income
1,008
47
1,095
212
2,362
Interest expense
-
-
-
(3)
(3)
Total nonoperating revenues
1,212
47
1,095
232
2,586
Income before transfers
2,836
45
3,705
(187)
6,399
Transfers in
378
1
4
116
499
Change in net position
3,214
46
3,709
(71)
6,898
Net Position, Beginning
34,115
935
17,037
7,509
59,596
Net Position, Ending
$ 37,329 $
981 $
20,746 $
7,438 $
66,494
109
City of Iowa City, Iowa
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
(amounts expressed in thousands)
Equipment
Central
Loss
Information
Maintenance
Services
Reserve
Technology
Total
Cash Flows From Operating Activities
Receipts from users
$ 7,905
$
181
$
15,018
$ 2,789
$
25,893
Payments to suppliers
(2,945)
(123)
(12,892)
(1,395)
(17,355)
Payments to employees
(1,188)
(39)
(359)
(1,393)
(2,979)
Net cash flows from operating activities
3,772
19
1,767
1
5,559
Cash Flows From Noncapital Financing
Activities
Transfers from other funds
378
1
4
116
499
Net cash flows from (used for) noncapital
financing activities
378
1
4
116
499
Cash Flows From Capital and Related
Financing Activities
Acquisition and construction of property
and equipment
(2,843)
(13)
(435)
(3,291)
Lease revenues received
-
20
20
Interest paid on subsciption liability
(3)
(3)
Principal paid on subsciption liability
-
(57)
(57)
Proceeds from sale of property
231
-
3
234
Net cash flows used for capital and related
financing activities
(2,612)
(13)
-
(472)
(3,097)
Cash Flows From Investing Activities
Interest on investments
949
43
999
196
2,187
Net increase in cash
and cash equivalents
2,487
50
2,770
(159)
5,148
Cash and Cash Equivalents, Beginning
20,504
884
20,301
4,370
46,059
Cash and Cash Equivalents, Ending
$ 22,991
$
934
$
23,071
$ 4,211
$
51,207
Reconciliation of operating income
to net cash flows from operating activities:
Operating income
$ 1,624
$
(2)
$
2,610
$ (419)
$
3,813
Adjustments to reconcile operating income
to net cash flows from operating activities:
Depreciation/amortization expense
2,259
28
-
363
2,650
Changes in:
Receivables:
Accounts and unbilled usage
(88)
-
41
(4)
(51)
Due from other governments
62
-
2
64
Inventories
(39)
-
-
-
(39)
Accounts payable
75
(4)
(206)
35
(100)
Accrued liabilities
5
-
(670)
8
(657)
Employee vested benefits
3
(2)
8
11
20
Net pension liability
53
3
9
117
182
Deferred outflows of resources
(62)
(3)
(15)
(90)
(170)
Deferred inflows ofresources
(64)
(2)
(11)
(43)
(120)
Other post employment benefits liability
(56)
1
1
21
(33)
Total adjustments
2,148
21
(843)
420
1,746
Net cash flows from operating activities
$ 3,772
$
19
$
1,767
$ 1
$
5,559
Noncash Investing, Capital, and Financing
Activities:
Contributions of capital assets from
government and others
$
$
$
$
$
110
Statistical
ID
Section
Tabs
Statistical Section
This part of the City of Iowa City's annual comprehensive financial report represents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall financial
health.
Contents
Page
Financial Trends 113
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 118
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 128
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government's
ability to issue additional debt in the future.
Demographic and Economic Information 134
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 136
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to
the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial report for the relevantyear.
111
City of Iowa City, Iowa
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
(amounts expressed in thousands)
2015 2016' 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Net investment in capital assets
$ 153,729
$ 163,362
$ 183,651
$ 203,077
$ 208,028
$ 220,004
$ 228,418
$ 230,285
$ 235,218
$ 238,351
Restricted
36,447
42,154
47,676
41,490
38,819
33,578
33,664
36,900
40,048
44,316
Unrestricted
15,520
18,402
16,264
17,646
20,124
21,819
25,528
39,505
52,971
68,947
Total governmental activities net position
$ 205,696
$ 223,918
$ 247,591
$ 262,213
$ 266971
$ 275,401
$ 287.610
$ 306.690
$ 328,237
$ 351,614
Business -type activities
Net investment in capital assets
$ 279,272
$ 279,679
$ 285,912
$ 294,109
$ 304,111
$ 314,523
$ 315,915
$ 325,787
$ 325,391
$ 332,087
Restricted
22,389
22,269
21238
22,219
18,055
17,558
14,859
13216
7,959
5,292
Unrestricted
57,367
69,472
76,664
73,126
77224
76,661
84,097
92,370
104,736
112,850
Total business -type activities net position
$ 3 99,028
$ 3 11,420
$ 3 33,814
$ 3 99,454
$ 3 99,390
$ 4 88,742
$ 4 44,871
$ 4 11,373
$ 4 88,086
$ 450,229
Primary government
Net investment in capital assets
$ 433,001
$ 443,041
$ 469,563
$ 497,186
$ 512,139
$ 534,527
$ 544,333
$ 556,072
$ 560,609
$ 570,438
Restricted
58,836
64,423
68,914
63,709
56,874
51,136
48,523
50,116
48,007
49,608
Unrestricted
72,887
87,874
92,928
90,772
97,348
98,480
109,625
131,875
157,707
181,797
Total primary government net position
$ 564,724
$ 595,338
$ 631,405
$ 651,667
$ 666,361
$ 684,143
$ 702,481
$ 738,063
$ 766,323
$ 801,843
I The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015
113
City of Iowa City, Iowa
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
(amounts expressed in thousands)
2015
2016r
2017
2018
2019
2020
2021
2022
2023
2024
Expenses
Governmental activities:
Public safety
$ 21,193
$ 22,029
$ 24,002
$ 25,191
$ 26,265
$ 29,252
$ 30,411
$ 23,609
$ 26,450
$ 29,252
Public works
11,037
10,839
12,032
12,813
16,324
16,071
16,363
17,746
19,051
16,733
Culture and recreation
14,049
14,422
15,525
16,363
16,009
16,233
15,774
16,923
18,135
18,664
Community and economic development
7,093
6,786
8,253
12,019
16,022
9,383
8,549
11,074
13,570
12,269
General government
7,752
6,240
6,124
6,858
7,524
7,693
10,529
7,439
8,774
10,442
Debt service
1,517
1,287
1,481
1,414
1,444
1,452
1,561
1,553
1,622
1,624
Total governmental activities expenses
62,641
61,603
67,417
74,658
83,588
80,084
83,187
78,344
87,602
88,984
Business -type activities:
Wastewater
12,131
11,866
11,233
11,392
11,413
10,807
12,520
12,105
12,869
12,843
Water
8,403
8,149
8,921
9,472
9,543
9,302
10,177
9,477
9,672
11,022
Sanitation
8,114
8,735
9,123
9,408
10,858
10,145
10,045
10,113
10,282
12,907
Housing authority
7,873
8,378
8,798
9,535
10,170
10,021
10,141
11,832
12,067
13,277
Parking
4,678
4,460
4,620
5,590
5,461
5,014
4,613
5,381
6,436
6,067
Airport
1,612
1,597
1,402
1,680
1,466
2,511
1,835
1,509
1,433
1,677
Stonnwater
2,091
1,989
2,432
1,844
1,832
2,198
2,105
2,190
2,393
2,147
Cable television
704
-
-
-
-
-
-
-
-
-
Transit
7,379
7,486
7,263
8,071
8,833
9,041
8,107
8,573
9,276
10,604
Total business -type activities expenses
52,985
52,660
53,792
56,992
59,576
59,039
59,543
61,180
64,428
70,544
Total primary government expenses
$ 1 55,626
$ 1 44,263
$ 1 11,209
$ 1 11,650
$ 143,164
$ 139, 123
$ 1 22,730
$ 1 99,524
$ 152,030
$ 1 99,528
Program Revenues
Governmental activities:
Charges for services
Public safety
$ 3,926
$ 4,813
$ 5,286
$ 4,438
$ 4,870
$ 4,430
$ 4,277
$ 4,625
$ 5,129
$ 5,331
Publicworks
388
628
724
62
290
243
482
149
112
349
Culture and recreation
801
823
842
836
854
508
322
627
696
701
Community and economic development
50
1,044
36
441
548
59
1,837
3,625
2,066
20
General government
2,975
1,252
1,524
1,520
1,717
1,551
1,582
1,728
1,871
1,801
Operating grants and contributions
8,701
9,941
10,828
10,245
13,758
13,113
12,479
14,491
15,550
23,598
Capital grants and contributions
11,556
3,999
9,952
1,459
1,972
1,915
2,845
4,316
3,113
1,493
Total governmental activities program revenues
28,397
22,500
29,192
19,001
24,009
21,819
23,824
29,561
28,537
33,293
Business -type activities:
Charges for services:
Wastewater
12,189
12,266
12,277
12,626
12,831
12,357
12,155
12,121
12,333
12,795
Water
8,527
9,134
9,275
9,473
9,640
10,048
9,934
10,127
10,473
10,997
Sanitation
9,015
9,215
9,927
10,014
10,017
10,193
11,944
11,289
11,853
12,767
Housing authority
237
300
321
323
295
280
296
282
307
350
Parking
5,502
5,438
5,453
5,648
5,982
4,354
3,758
5,054
5,296
5,459
Airport
349
333
345
348
361
371
376
372
389
396
St-ater
1,147
1,168
1,544
1,560
1,568
1,730
1,701
1,704
1,730
1,886
Cable Television
750
-
-
-
-
-
-
-
-
-
Transit
2,289
2,099
2,089
2,216
2,171
1,802
1,385
1,745
1,822
958
Capital grants and contributions: Wastewater
1,370
3,415
2,226
1,913
1,827
2,550
1,580
964
167
360
Capital grants and contributions: Water
581
254
869
483
488
965
834
481
235
266
Capital grants and contributions: S anitation
-
-
-
22
13
-
-
-
-
-
Capital grants and contributions: Airport
137
260
58
49
38
134
267
154
690
632
Capital grants and contributions: Stonnwatm
792
370
1,251
892
902
876
1,230
696
540
186
Capital grants and contributions: Parking
-
-
-
-
-
-
-
-
-
18
Capital grants and contributions: Transit
-
308
395
3,827
-
-
77
3,416
-
-
Operating grants and contributions: Housing authority
7,628
8,318
8,532
9,065
9,443
9,875
9,691
11,481
11,529
13,297
Operating grants and contributions: Water
2
-
-
-
-
2
45
42
6
-
Operating grants and contributions: Airport
232
128
69
72
14
896
332
259
147
117
Operating grants and contributions: S anitation
25
3
-
3
104
20
18
105
-
-
Operating grants and contributions: Wastewater
21
-
-
-
-
8
-
77
-
-
Operating grants and contributions: Stonnwatm
279
95
-
2
-
-
-
-
-
-
Operating grants and contributions: Parking
-
-
-
-
-
3
-
3
-
-
Operating grants and contributions: Transit
2,082
2,095
2,235
2,088
2,152
3,107
3,016
5,096
5,059
5,548
Total business -type activities program revenues
53,154
55,199
56,866
60,624
57,846
59,571
58,639
65,468
62,576
66,032
Total primary government revenues
$ 81,551
$ 77,699
$ 86,058
$ 99,625
$ 81,855
$ 81,390
$ 82,463
$ 55,029
$ 11, 113
$ 99,325
Net (Expense) / Revenues
Governmental activities
$ (34,244)
$ (39,103)
$ (38,225)
$ (55,657)
$ (59,579)
$ (58,265)
$ (59,363)
$ (48,783)
$ (59,065)
$ (55,691)
Business-TTotal primary government net expense
34,098
36 564
35 015�
52 025
61 309
57,733
60 267
44 488
60 917
60 203
General Revenues and Other Changes in Net Position
Governmental activities:
General revenues:
Property taxes
$ 52,205
$ 53,114
$ 57,649
$ 59,046
$ 61,739
$ 62,846
$ 69,482
$ 70,678
$ 70,824
$ 70,578
Other taxes
2,810
2,717
2,802
2,706
2,935
2,696
2,576
3,541
3,786
3,774
Grants and contributions not restricted to specific purposes
1,048
2,080
1,583
1,547
1,552
1,513
1,587
1,555
1,244
1,675
Earnings (loss) on investments
1,188
1,045
1,397
2,368
3,257
2,585
841
(544)
4,325
8,894
Miscellaneous
5,518
4,464
3,369
3,656
3,329
3,331
3,030
3,524
3,984
3,903
Gain on sale of assets
135
218
2,151
140
186
111
213
257
1,242
418
Transfers
(10,057)
(6,395)
(7,053)
1,814
(8,661)
(6,387)
(6,157)
(11,148)
(4,876)
(10,174)
Reassignments
82
Total governmental activities
52,847
57,325
61,898
71,277
64,337
66,695
71,572
67,863
80,529
79,068
(continued)
114
Business -type activities:
General revenues:
Earnings (loss) on investments
Gain on sale of assets
Miscellaneous
Transfers
Reassignments
Special items
Total business -type activities
Total primary government
Change in Net position
Governmental activities
Business -type activities
Total primary government
City of Iowa City, Iowa
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual basis of accounting)
(amounts expressed in thousands)
2015
2�
2 117
2 118
2 119
2 220
2 221
2 222
2 223
2024
707
715
938
1,496
2,166
1,794
426
(190)
2,605
5,253
856
2,463
69
2,438
1
74
22
23
1
23
374
362
1,260
456
838
565
428
1,233
1,083
1,205
10,057
6,395
7,053
(1,814)
8,661
6,387
6,157
11,148
4,876
10,174
-
(82)
_
_
_
_
_
_
_
_
(574)
11,420
9,853
9320
2,576
11,666
8,820
7,033
12,214
8,565
16,655
$ 44,267
$ 77,178
$ 71218
S 73,853
S 76,003
S 75,515
S 78,605
S W077
S 89,094
$ 55,723
$ 18,603
$ 18,222
$ 23,673
$ 15,620
$ 4,758
$ 8,430
$ 12,209
$ 19.080
$ 21,464
$ 23,377
11 589
-30192
12 392
30,614
12 394
36,067
6208
21,828
9 936
14,694
9 352
17,782
6 129
18,338
16 502
3582
6 713
28,177
12 143
35,520
r The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
115
City of Iowa City, Iowa
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(amounts expressed in thousands)
2015
2016'
2017 2018 2019
2020
2021
2022
2023
2024
General Fund
Nonspendable
$ 69
$ 69
$ 788 $ 793 $ 887
$ 549
$
469
$ 1,889
$
2,127
$ 6,404
Restricted
25,291
18,975
9,974 1,942 1,808
1,747
1,455
2,015
2,310
2,455
Committed
-
4,699
5,199 4,962 -
-
-
-
-
-
Assigned
-
1,143
1,342 1,437 3,565
5,708
9,883
14,852
19,622
18,437
Reserved
4,483
-
- - -
-
-
-
-
-
Unassigned
19,286
23,366
24,793 28,516 34,358
35,369
40,414
40,074
37,977
46,149
Total general fund
$ 49,129
$ 48,252
$ 42,096 $ 37,650 S 40,618
$ 43,373
$
52,221
$ 58,830
$
62,036
S 73,445
All other Governmental Funds
Nonspendable
$ -
$ -
$ 344 $ 165 $ 224
$ 278
$
218
$ 243
$
269
$ 274
Restricted
27,897
38,266
63,941 64,033 50,966
48,728
51,931
57,346
61,230
61,842
Unassigned
-
-
- (38) (59)
(611)
(27)
(417)
(251)
(3)
Total all other governmental funds
S 27,897
S 38,266
S 64,285 S 64,160 S 51,131
S 48,395
S
52,122
S 57,172
$
61,248
S 62,113
The City of Iowa City reclassified the Cable
Fund from an Enterprise
Fund to the General
Fund effective July 1, 2015.
116
City of Iowa City, Iowa
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2015 2016r 2017 2018 2019 2020 2021 2022 2023 2024
Revenues:
Property taxes and assessments
$ 55,014
$ 55,831
$ 60,452
$ 61,753
$ 64,672
$ 65,542
$ 72,058
$ 74,220
$ 74,611
$ 74,353
Licenses and permits
1,806
3,056
3,521
2,734
2,981
2,352
2,541
2,786
2,854
3,036
Intergovernmental
21,086
20,230
24,140
14,944
16,828
18,603
20,127
22,756
23,443
30,127
Charges for services
2,204
3,357
2,355
2,295
2,690
1,715
3,446
5,314
3,890
1,965
Fines and forfeits
-
760
750
695
776
609
375
434
372
392
Use of money and property
1,080
946
1,235
1,937
2,564
1,872
773
506
3,547
6,533
Miscellaneous
7,045
2,913
2,101
2,875
2,261
2,440
2,112
2,591
3,477
3,059
Total governmental activities revenues
$ 88,235
$ 87,093
$ 94,554
$ 87,233
$ 92,772
$ 93,133
$ 101,432
$ 108,607
$ 112,194
$ 119,465
Expenditures
Current
Public safety
Public works
Culture and recreation
Community and economic development
General government
Debt service
Principal
Interest
Capital projects
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources (uses):
Issuance oflong-term debt
Sale of capital assets
Premium (discount) on issuance of bonds
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fimd balances
$ 21,996 $ 21,701 $ 22,513 $ 23,360 $ 24,295 $ 25,637 $ 26,167 $ 26,821 $ 27,649 $ 29,033
12,071 9,466 9,186 10,052 10,894 10,586 11,447 10,883 11,440 12,131
11,821 12,257 13,341 14,208 13,709 13,653 12,979 15,090 16,009 16,992
5,711 5,346 7,695 11,074 15,723 8,627 8,305 11,076 13,629 12,213
7,608 6,007 5,882 6,017 6,579 6,789 9,788 7,907 8,748 10,108
12,564 13,230 13,305 11,895 12,080 11,385 12,745 11,220 11,085 11,125
1,669 1,475 1,597 1,570 1,589 1,648 1,905 1,956 2,072 2,162
14,762 14,848 18,405 28,225 22,632 21,211 12,173 12,073 20,824 14,115
$ 88,202 $ 84,330 $ 91,924 $ 106,401 $ 107,501 $ 99,536 $ 95,509 $ 97,026 $ 111,456 $ 107,879
$ 33 $ 2,763 $ 2,630 $ (19,168) $ (14,729) $ (6,403) $ 5,923 $ 11,581 $ 738 $ 11,586
$ 7,785 $ 9,405 $ 22,570 $ 11,995 $ 12,535 $ 12,145 $ 11,325 $ 10,255 $ 9,105 $ 10,230
165 252 2,292 140 758 111 233 256 1,538 211
199 441 120 236 81 927 1,464 553 894 720
13,089 25,133 34,675 34,666 25,663 21,236 21,223 24,229 24,631 33,212
(23,430) (28,502) (47,033) (32,440) (34,369) (27,997) (27,593) (35,215) (29,624) (43,685)
$ (2,192) $ 6,729 $ 12,624 $ 14,597 $ 4,668 $ 6,422 $ 6,652 $ 78 $ 6,544 $ 688
$ (2,159) $ 9,492 $ 15,254 $ (4,571) $ (10,061) $ 19 $ 12,575 $ 11,659 $ 7,282 $ 12,274
Debt service as a percentage of
noncapital expenditures 19.8% 212% 19.9% 17.1% 15.6% 15.9% 17.1% 14.6% 13.8% 14.0%
Debt services as a percentage of
expenditures and transfers 12.7% 13.0% 10.7% 9.7% 9.6% 10.2% 11.9% 10.0% 93% 8.8%
r The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
117
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
Utility
Year
Property Tax
Road Use Tax
Hotel/Motel Tax
Franchise Fee
Total
2015
53,056
7,231
1,057
902
62,246
2016
53,878
8,320
1,079
874
64,151
2017
58,375
8,672
1,137
939
69,123
2018
59,730
8,427
1,046
976
70,179
2019
62,407
8,820
1,302
965
73,494
2020
63,523
9,163
1,135
884
74,705
2021
70,126
10,077
938
994
82,135
2022
71,362
9,900
1,708
1,149
84,119
2023
71,608
10,346
1,885
1,117
84,956
2024
71,326
10,580
2,043
983
84,932
118
City of Iowa City, Iowa
Assessed and Taxable Value of Property
Last Too Fiscal Years
Assessed Valuation
Tax Collection Year:
FY2024
FY2023
FY2022
FY2021
FY2020
FY2019
FY2018
FY2017
FY2016
FY2015
Residential
$ 5,932,542,314 $
5,302,710,934 $
5,067,120,030 $
4,958,648,218 $
4,399,451,083 $
4,255,597,838 $
4,001,761,478 $
3,882,757,454 $
3,603,743,609 $
3,488,112,611
Agricultural Based at Ag rate)
1,650,370
1,574,220
1,727,980
1,748,000
2,539,080
2,625,810
3,425,692
3,720,671
3,553,520
3,680,920
Multi -Residential
-
544,717,108
539,398,739
539,636,381
489,176,499
471,420,082
411,460,472
410,426,868
-
-
Commercial
1,058,466,499
1,048,701,445
1,056,414,063
1,060,943,044
932,699,374
915,964,068
821,949,555
805,734,128
1,129,397,979
1,144,437,631
Industrial
77,109,703
77,491,638
79,998,654
80,663,794
76,905,588
71,553,904
72,635,554
73,206,895
74,399,739
80,153,614
Railroads
4,628,817
4,380,355
4,072,190
4,488,469
3,601,348
3,549,414
3,984,932
4,096,577
4,015,580
3,827,506
Utilities Wout Gas & Electric
269,478
2,779,716
4,339,508
6,152,547
7,386,408
7,099,293
6,734,894
7,375,066
8,239,789
9,599,528
Gross valuation
7,074,667,181
6,982,355,416
6,753,071,164
6,652,280,453
5,911,759,380
5,727,810,409
5,321,952,577
5,187,317,659
4,823,350,216
4,729,811,810
Less: Military exemption
2,150,172
2,239,068
2,392,784
2,435,380
2,489,088
2,579,836
2,635,396
2,727,994
2,828,002
2,939,122
Net valuation
7,072,517,009
6,980,116,348
6,750,678,380
6,649,845,073
5,909,270,292
5,725,230,573
5,319,317,181
5,184,589,665
4,820,522,214
4,726,872,688
Incremental value
134,159,857
133,492,758
142,496,667
89,469,635
115,175,495
85,379,709
80,577,275
72,666,677
42,307,287
21,131,574
Gas and Electric Utilities
161,652,144
134,787,151
126,171,274
118,583,613
109,124,421
97,050,716
94,582,279
92,987,351
87,728,294
78,642,915
Total Assessed valuation
$ 7,368,329,010 $
7,248,396,257 $
7,019,346,321 $
6,857,898,321 $
6,133,570,208 $
5,907,660,998 $
5,494,476,735 $
5,350,243,693 $
4,950,557,795 $
4,826,647,177
Percent change
1.655%
3.263%
2.354%
11.809%
3.824%
7.520%
2.696%
8.074%
2.567%
3.392%
Taxable Valuation
Tax Collection Year:
FY2024
FY2023
FY2022
FY2021
FY2020
FY2019
FY2018
FY2017
FY2016
FY2015
Assessment Limitation:
Residential rollback
54.6501%
54.1302%
56.4094%
55.0743%
56.9180%
55.6209%
56.9391%
55.6259%
55.7335%
54.4002%
Agricultural rollback
91.6430%
89.0412%
84.0305%
81.4832%
56.1324%
54.4480%
47.4996%
46.1068%
44.7021%
43.3997%
Multi -Residential rollback'
N/A
63.75%
67.50%
71.25%
75.00%
78.75%
82.50%
86.25%
NA
NA
Commercial and Railroad rollback
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
95.0%
Industrial rollback
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
90.0%
95.0%
Uilities rollback
100.0%
100.0%
98.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Residential
$ 3,208,598,660 $
2,841,405,824 $
2,837,384,852 $
2,719,569,602 $
2,490,442,298 $
2,356,529,643 $
2,274,451,551 $
2,155,033,296 $
2,008,493,138 $
1,894,079,854
Agricultural Based at Ag rate)
1,512,444
1,401,705
1,452,029
1,424,328
1,425,151
1,429,547
1,618,090
1,706,955
1,588,496
1,597,501
Multi -Residential
-
343,613,885
360,829,356
382,070,966
363,613,829
368,969,925
337,946,106
353,335,857
-
-
Commercial
901,891,655
937,999,668
944,990,382
950,525,463
832,628,954
819,505,276
734,200,396
720,036,878
1,016,458,199
1,086,556,293
Industrial
68,348,823
69,541,657
71,998,513
72,596,824
68,970,889
64,152,540
64,688,055
65,301,535
66,959,765
76,128,877
Railroads
4,150,574
3,942,320
3,664,971
4,039,622
3,241,213
3,194,473
3,586,439
3,686,919
3,614,022
3,636,130
Utilities Wout Gas & Electric
269,478
2,779,716
4,276,538
6,152,547
7,386,408
7,099,293
6,734,894
7,375,066
8,239,789
9,599,528
Gross valuation
4,184,771,634
4,200,684,775
4,224,596,641
4,13 6,379,3 52
3,767,708,742
3,620,880,697
3,423,225,531
3,306,476,506
3,105,353,409
3,071,598,183
Less: Military exemption
2,150,172
2,239,068
2,392,784
2,435,380
2,489,088
2,579,836
2,635,396
2,727,994
2,828,002
2,939,122
Net valuation
4,182,621,462
4,198,445,707
4,222,203,857
4,133,943,972
3,765,219,654
3,618,300,861
3,420,590,135
3,303,748,512
3,102,525,407
3,068,659,061
Incremental value
134,159,857
133,492,758
131,180,258
84,077,937
115,175,495
85,379,369
80,559,947
72,650,838
33,331,128
21,131,574
Gas and Electric Utilities
43,501,718
44,017,962
40,595,608
40,156,239
42,719,065
41,797,475
41,702,196
44,986,783
46,785,426
47,004,994
Total Taxable Valuation
$ 4,360,283,037 $
4,375,956,427 $
4,393,979,723 $
4,258,178,148 $
3,923,114,214 $
3,745,477,705 $
3,542,852,278 $
3,421,386,133 $
3,182,641,961 $
3,136,795,629
Percent change
-0.358%
-0.410%
3.189%
8.541%
4.743%
5.719%
3.550%
7.501%
1.462%
3.320%
Total Direct Tax Rate
City of Iowa City
$ 15.633 $
15.633 $
15.673 $
15.773 $
15.833 $
16.183 $
16.333 $
16.583 $
16.651 $
16.705
Sources:
Iowa. Department of Management, IC Budget
Notes:
Property is reassessed in the odd numbered years to make adjustments to all property values, according to current market values. As per the Code of Iowa, all real 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.
1 Beginning in FY2024 Multi -Residential is inclued with Residential
119
City of Iowa City, Iowa
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
(per $1,000 assessed valuation)
Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
Levy Year: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City:
General Fund $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000
Emergency Levy 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.24000 0.24000 0.20000 0.20000
Debt Service Fund 4.12963 3.92833 3.82846 3.57846 3.22846 2.97846 2.57846 2.47846 2.47846 2.47846
Employee Benefits 2.96331 3.11277 3.14415 3.14415 3.34415 3.24415 3.34415 3.34415 3.34415 3.34415
Capital Improvement 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Other 1.51226 1.50986 1.51044 1.51044 1.51044 1.51044 1.51044 1.51044 1.51044 1.51044
Total City $ 16.70520 $ 16.65096 $ 16.58305 $ 16.33305 $ 16.18305 $ 15.83305 $ 15.77305 $ 15.67305 $ 15.63305 $ 15.63305
Johnson County $ 6.74168 $ 6.90337 $ 6.77140 $ 6.85143 $ 6.53594 $ 6.49278 $ 6.34581 $ 6.16774 $ 6.04075 $ 6.43080
Iowa City Community School District 13.69999 13.86773 13.98935 13.95855 14.85629 14.79097 14.83935 14.85066 14.93382 16.81865
Kirkwood 1.05754 1.06125 1.08048 1.13174 1.20354 1.21331 1.25730 1.31195 1.34462 1.39550
Other 0.32315 0.32784 0.32450 0.33036 0.30557 0.27066 0.33110 0.32744 0.30673 0.31388
Total Tax Rate $ 38.52756 $ 38.81115 $ 38.74878 $ 38.60513 $ 39.08439 $ 38.60077 $ 38.54661 $ 38.33084 $ 38.25897 $ 40.59188
Source: "Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor.
Note:
Does not include the tax rate for agriculture.
Taxpayers in the Iowa City Community School District Area
On county web excel sheet ICI is the row that you use. For Total City Millage column N, ICSD column K, KCC column G. State of Iowa column H,
Operating Millage and Total Direct and overlapping are calculated fields
120
City of Iowa City, Iowa
Levies and Collections
Last Ten Fiscal Years
(Cash basis of accounting)
(amounts expressed in thousands)
Percent of
Total as
Collection
Total Tax
Current Tax
Levy
Delinquent Tax
Total Tax
a Percent of
Year
Levied
Collections
Collected
Collections)
Collections
Lev
2015
51,609
51,292
99.4
3
51,295
99.4
2016
52,034
52,074
100.1
0
52,074
100.1
2017
55,330
55,331
100.0
0
55,331
100.0
2018
56,458
56,346
99.8
1
56,347
99.8
2019
59,174
59,252
100.1
2
59,254
100.1
2020
60,297
58,971
97.8
1
58,972
97.8
2021
65,849
65,656
99.7
1058
66,714
101.3
2022
66,912
67,075
100.2
29
67,104
100.3
2023
66,474
66,259
99.7
3
66,262
99.7
2024
66,313
66,083
99.7
0
66,083
99.7
Source: Certificate of City Taxes and Johnson County Treasurer's Office
Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and
submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in
excess of the Total Tax Levied.
1 Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from
Johnson County Treasurer by levy year.
121
Ten largest taxpayers`
Rise at Riverfront Crossing Owner LLC
Tailwind Iowa City LLC
BBCS Hawkeye Housing LLC
1201 Gilbert LLC
Mid -American Energy Company
Hollingsworth Capital Partners Iowa LLC
Webber - Iowa LLC
Augusta Place LLC
Vesper Iowa City LLC
McLaughlin, Michael T
ACT Inc (Am College Testing Prgrm)
Ann Gerdin Trust (formerly Russell Gerdin)
Dealer Properties IC LLC (Billion Auto)
Proctor & Gamble LLC
Alpha Inc.
CCAL 100 Hawk Ridge Drive LLC The Lodge
National Computer Systems (Pearson)
Wal-Mart Real Estate
Kobrin Deve Co Inc (Southgate Dev Co)
City of Iowa City, Iowa
Principal Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
Tvoe of Business
Real Estate Developer
Real Estate Mangment
Real Estate Mangment
Real Estate Mangment
Public Gas and Electric Utility
Real Estate Developer
Domestic Limited Liability Company
Real Estate Mangment
Real Estate Mangment
Real Estate Mangment & Dev
Educational Testing Service
Warehousing
Car Dealerships
Manufacturing Company
Industrial
Housing Complex
Information Services
Retail
Real Estate Developer
Sources:
City of Iowa City Assessor's Office, Johnson County Auditors Office
2015
%ofTotal
Taxable Taxable
Valuation Rank Valuation
$ N/A
N/A
N/A
N/A
44,302 1 1.41 %
- - N/A
N/A
N/A
N/A
N/A
44,151 2 1.41
21,233 3 0.68
18,676 4 0.60
15,419 5 0.49
14,616 6 0.47
13,171 7 0.42
12,428 8 0.40
12,078 9 0.39
11,712 10 0.37
2024
% of Total
Taxable
Taxable
Valuation
Rank
Valuation
68,695
1
1.58 %
57,607
2
1.32
50,041
3
1.15
45,412
4
1.04
32,055
5
0.74
31,989
6
0.73
31,810
7
0.73
29,355
8
0.67
28,000
9
0.64
25,787
10
0.59
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 207,786 6.62 % $ 400.751 9.19 %
122
123
City of Iowa City, Iowa
Larger Water System Customers
Current Year and Nine Years Ago
2015
2024
Customer Name
Charges
Rank
Percentage
Charges
Rank
Proctor & Gamble $
611,186
1
7.51 %
$ 697,783
1
Veterans Administration Medical Center
102,194
2
1.26
189,497
2
Tailwind Iowa City LLC formerly Dolphin Lake/Lakeside Manor
76,188
3
0.94
88,513
3
Graduate Hotel (formerly RBD Iowa City LLC &Sheraton Hotel)
35,860
8
0.44
82,527
4
Mercy Hospital
66,050
4
0.81
79,859
5
Campus Apartments
59,240
6
0.73
78,756
6
Dominium JIT Sry formerly Mark IV Apts
60,058
5
0.74
62,832
7
Rise at Riverfront Crossing
-
-
N/A
50,735
8
Seville Apts
31,979
10
0.39
46,396
9
Oaknoll Retirement Residence
-
-
N/A
45,679
10
University of Iowa, Mayflower Apt.
41,017
7
0.50
-
-
CCAL 100 Hawk Ridge Drive
32,187
9
0.40
-
$
1,115,959
13.72 %
$ 1,422,577
Total Water System Charges $
8,136,670
$ 10,739,382
Sources:
City of Iowa City Revenue Division
Percentage
6.50 %
1.76
0.82
0.77
0.74
0.73
0.59
0.47
0.43
0.43
N/A
N/A
13.24 %
124
City of Iowa City
Sales History and Water System Charges
Last Ten Fiscal Years
Fiscal
Water Sales
Water System
Year
Cubic Feet Sold
Charges
20151
240,423,612
8,161,522
2016
255,524,943
8,758,683
2017
267,511,531
9,156,005
2018
293,046,636
9,953,510
2019
289,055,329
10,139,587
2020
285,102,926
10,705,168
2021
237,035,139
9,459,987
2022
237,722,261
10,209,841
2023
249,812,176
11,172,513
2024
246,654,877
10,739,382
Sources:
City of Iowa City Revenue Department
Notes:
'Beginning in March 2015, Water Sales by Cubic Feet Sold also includes unbilled usage.
125
City of Iowa City, Iowa
Larger Sewer System Charges
Current Year and Nine Years Ago
2015
Customer Name
Charges
Rank
University oflowa
$ 1,831,543
1
Proctor & Gamble
1,111,847
2
Iowa City Landfill
137,895
3
Veterans Administration Medical Center
126,782
4
Graduate Hotel (formerly RBD Iowa City LLC)
59,569
10
Mercy Hospital
105,044
6
Tailwind Iowa City LLC formerly Dolphin Lake
123,920
5
Campus Apartments
73,486
8
Rise at Riverfront Crossing
-
-
Dominium JIT Sry formerly Mark IV Apts
80,811
7
University of lowa/Mayfiower Apartments
68,369
9
$ 3,719,266
Total Sewer System Charges $ 12,248,082
Sources:
City of Iowa City Revenue Department
2024
Percentage
Charges
Rank
Percentage
14.95 %
$ 1,972,383
1
14.64 %
9.08
802,484
2
5.96
1.13
196,737
3
1.46
1.04
185,096
4
1.37
0.49
115,118
5
0.85
0.86
106,480
6
0.79
1.01
91,060
7
0.68
0.60
83,052
8
0.62
N/A
66,416
9
0.49
0.66
64,954
10
0.48
0.56
-
-
N/A
30.37 %
$ 3,683,780
27.34 %
$ 13,474,832
126
City of Iowa City, Iowa
Sales History and Sewer System Charges
Last Ten Fiscal Years
Fiscal
Year
20151
2016
2017
2018
2019
2020
2021
2022
2023
2024
Sources:
City of Iowa City Revenue Department
Sewer Sales
Sewer System
Cubic Feet Sold
Charges
266,830,947
12,278,153
270,547,701
12,022,203
277,712,785
12,404,360
283,246,320
12,524,540
288,537,266
12,822,250
279,106,456
12,503,764
265,605,446
11,819,500
265,503,359
12,407,521
304,100,257
12,605,172
308,883,017 13,474,832
Notes:
'Beginning in March 2015, Sewer Sales by Cubic Feet Sold also includes unbilled usage.
127
City of Iowa City, Iowa
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Business -Type Activities
General
Capital
General
Capital
Total
Percentage
Fiscal
Obligation
Revenue
Loan
Subscription
Obligation
Revenue
Subscription
Loan
Primary
of Personal
Per
Year
Bonds'
Bonds'
Note
Liabilitv
Bonds'
Bonds'
Lease Liabilitv
Note
Government
Income
Capita
2015
59,421,203
2,618,892
210,784
590,000
45,566,903
108,407,782
1.40
1,475
2016
55,998,392
2,491,016
210,784
295,000
39,951,661
-
98,946,853
1.23
1,327
2017
52,571,254
15,168,140
210,784
-
34,420,914
14,482,714
116,853,806
1.34
1,544
2018
52,883,524
15,035,264
210,784
29,095,062
11,958,305
109,182,939
1.18
1,442
2019
53,402,638
14,902,388
210,784
21,155,710
9,413,024
99,084,544
1.02
1,319
2020
55,007,945
14,764,512
210,784
16,786,358
-
86,769,599
0.86
1,158
2021
56,685,493
12,781,636
210,784
-
12,242,006
81,919,919
0.77
1,098
2022
56,823,948
11,818,760
210,784
443,158
7,645,204
76,498,696
0.66
1,009
2023
56,219,091
10,880,000
210,784
316,763
3,701,946
71,328,584
0.60
943
2024
56,456,920
9,925,000
210,784
254,298
1,921,712
151,403
788,425
69,708,542
0.57
917
Notes:
Details regarding the city's outstanding debt can be found in the notes to the financial statements
' Bonds reported net of related premiums and discounts.
2 Population and personal income information can be found on page 134.
128
City of Iowa City Iowa
Ratios of General Obligation Bonded Debt'
to Assessed Value and Net Bonded Debt per Capita
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita)
Gross General
Less: Debt
Net General
Net Bonded Debt
Net Bonded
Fiscal
Obligation
Service
Obligation
per $1,000 of
Debt
Year
Bonded Debt'
Fund Balance
Bonded Debt
Assessed Value
Per Canita2
2015
60,011
3,921
56,090
10.97:1000
764
2016
56,293
6,463
49,830
10.04:1000
671
2017
52,571
7,221
45,350
8.38:1000
599
2018
52,884
8,423
44,461
8.09:1000
587
2019
53,403
9,514
43,889
7.43:1000
584
2020
55,008
9,590
45,418
7.40:1000
606
2021
56,685
7,388
49,297
7.19:1000
661
2022
56,824
7,190
49,634
7.07:1000
654
2023
56,219
7,246
48,973
6.76:1000
647
2024
56,457
7,608
48,849
6.63:1000
643
Notes:
' General Obligation bonds, net of related premiums and
discounts.
2 Population data
can be found on
page 134.
129
Name of
Governmental Unit
City of Iowa City
Iowa City Community
School Districts
Johnson Countys
Clear Creek- Amana
Community School Districts
Kirkwood Comm. Colleges
Total Overlapping Debt
Total Direct & Overlapping Debt
City of Iowa City, Iowa
Computation of Direct and Overlapping Debt
June 30, 2024
(amounts expressed in thousands, except per capita)
Total General
Percent
Amount
Long -Term
Applicable
Applicable
Direct Debt
to the City of
to the City of
Outstanding
Iowa Citv
Iowa Citv
$ 66,847
100.00 %
$ 66,847
156,815
57.65
90,404
25,502
41.87
10,678
89,794
0.03
27
124,495
14.12
17,579
396,606
118,688
$ 463,453
s Long term debt outstanding includes only GO debt.
Net direct debt includes premiums & discounts
Source: Johnson County Auditor's Office.
Note: Overlapping governments are those that coincide,
at least
in part, with the geographic
boundaries of
the City.
This schedule estimates the portion of the outstanding
debt of
those
overlapping governments
that is borne
by the
residents and businesses of Iowa City. This process
recognizes
that,
when considering the
City's ability
to issue
and repay long-term debt, the entire burden borne by
the residents
and businesses should
be taken into
account.
However, this does not imply that every taxpayer is a
resident,
and
therefore responsible for
repaying the
debt, of
each overlapping govenunent.
130
City of Iowa City, Iowa
Legal Debt Margin Information)
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total Assessed
Valuation
$ 4,826,648
$ 4,950,559
$ 5,350,228
$ 5,494,459
$ 5,907,661
$ 6,133,570
$ 6,857,898
$ 7,019,346
$ 7,248,396
$ 7,368,329
Debt Limit
241,332
247,528
267,511
274,723
295,383
306,679
342,895
350,967
362,420
368,416
G.O. Bonds
59,340
55,350
51,645
51,880
52,470
53,370
53,935
53,935
52,915
52,980
TIF Rev. Bonds
2,655
2,525
15,200
15,065
14,930
14,790
12,805
11,840
10,880
9,925
Capital loan note payable
-
-
-
-
-
-
-
-
-
788
Letters of credit
2,005
582
663
475
603
-
-
-
-
-
Notes payable
211
211
211
211
211
211
211
211
211
211
Subscription Liability
-
-
-
-
-
-
-
443
317
406
TIF rebates
18,206
13,506
17,356
25,012
27,954
25,877
36,944
33,765
31,784
29,620
Total net debt
applicable to limit
82,417
72,174
85,075
92,643
96,168
94,248
103,895
100,194
96,107
93,930
Legal debt margin
$ 158,915
$ 175,354
$ 182,436
$ 182,080
$ 199,215
$ 212,431
$ 239,000
$ 250,773
$ 266,313
$ 274,486
Total net debt
applicable to
the limit as a
percentage of
debt limit 34.15% 29.16% 31.80% 33.72% 32.56% 30.73%
IAs reported in the Annual Financial Report to the State
Note: Under Iowa code, the city's outstanding general obligation debt should not exceed 5 percent of total assessed property value.
30.30% 28.55% 26.52% 25.50%
131
City of Iowa City, Iowa
Schedule of Revenue Bond Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Year
Net Revenue
Annual Debt Service
Ended
Available for
Ratio of
June 30
Revenue
Expenses'
Debt Service
Principal
Interest
Total
Coverage
Parking Revenue
2015'
5,620
3,828
1,792
540
254
794
2.26
2016
-
-
-
-
-
-
-
2017
5,531
3,683
1,848
1,015
86
1,101
1.68
2018
5,812
3,790
2,022
524
576
1,100
1.84
2019
6,205
3,724
2,481
545
476
1,021
2.43
2020'
4,577
3,476
1,101
567
375
942
1.17
2021
-
-
-
-
-
-
-
2022
2023
2024
Wastewater Treatment Revenue
2015
12,620
6,574
6,046
3,370
1,305
4,675
1.29
2016
12,681
6,513
6,168
3,520
1,175
4,695
1.31
2017
13,383
6,357
7,026
3,625
985
4,610
1.52
2018
13,181
6,622
6,559
3,580
756
4,336
1.51
20197
13,548
6,840
6,708
3,465
539
4,004
1.68
2020
12,917
6,366
6,551
2,510
367
2,877
2.28
2021
12,449
7,874
4,575
2,620
257
2,877
1.59
2022
12,473
7,525
4,948
2,660
153
2,813
1.76
2023
13,069
8,742
4,327
2,085
52
2,137
2.02
2024
-
-
-
-
-
-
-
Water Revenues
2015
8,715
5,632
3,083
1,380
610
1,990
1.55
2016
9,323
5,387
3,936
1,715
579
2,294
1.72
2017
9,529
6,332
3,197
1,760
524
2,284
1.40
2018
9,838
6,949
2,889
1,455
394
1,849
1.56
2019
10,078
6,888
3,190
1,510
280
1,790
1.78
2020
10,399
6,752
3,647
1,565
238
1,803
2.02
2021
10,048
7,471
2,577
1,630
193
1,823
1.41
2022
10,748
7,006
3,742
1,690
146
1,836
2.04
2023
11,811
7,535
4,276
1,755
97
1,852
2.31
2024
12,828
8,896
3,932
1,747
56
1,803
2.18
Notes:
' Excludes depreciation and interest.
2 hicludes principal and interest of revenue bonds only.
3 Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service"
is required to be at least 1.25.
4 Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total
Annual Debt Service" is required to be at least 1.10.
s Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service"
is required to be at least 1.10.
6 Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service.
7 Debt Service excludes the amount called early of $2,670,000.
8 Parking Capital Lease called early is excluded from the principal and interest of Annual Debt Service.
132
City of Iowa City, Iowa
Schedule of TIF Revenue Bond Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal
Taxable
Year
Valuation
Available
2012D TIF
2016E TIF
Available
Ended
Available for
TIF
Tax Increment
Revenue
Revenue
Debt
une 30
Certification (1)
Tax Rate (2)
Revenues (3)
Bonds
Bonds
Total
Coverage
2015
141,518
29.79
4,215
75
-
75
55.95
2016
156,898
30.49
4,784
205
-
205
23.30
2017
195,411
30.41
5,943
204
273
477
12.45
2018
226,439
30.34
6,870
207
384
591
11.61
2019
297,479
29.66
8,822
205
384
589
14.97
2020
341,736
29.93
10,228
207
384
591
17.31
2021
539,721
30.03
16,208
205
384
589
27.52
2022
620,560
29.99
18,611
-
1,349
1,349
13.80
2023
643,237
30.08
19,349
-
1,315
1,315
14.71
2024
625,949
31.38
19,642
-
1,281
1,281
15.33
(1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment
of the 2001 Amended portion of the Urban Renewal Area.
(2) The tax increment rate in fiscal year 2013-14 reflects the loss of the local school district's instruction support levy (ISPL) of
$.12405 due to recent legislative changes. TIF tax rate does not include the SSMID levy rate of $2.00 per $1,000 of value. Starting
in fiscal year 2012-13, a portion of the taxable valuation certified will be at the higher rate due to its location in the SSMID.
(3) The available tax increment revenues do not reflect an estimate for the portion of the available valuation that would be taxed at
the higher SSMID rate.
133
City of Iowa City, Iowa
Demographic and Economic Statistics
Last Ten Calendar Years
Per Capita
Calendar Personal
Personal Average
School
Unemployment
Year Population" Income`
Income` Increase
Enrollment'
Rate'
2015 73,497 8,035,139
48,343 2.11
14,495
2.9
2016 74,587 8,296,973
49,461 2.31
15,186
3.2
2017 75,690 8,713,868
51,198 3.51
15,299
3.0
2018 75,696 9,238,484
54,803 7.04
15,334
2.2
2019 75,130 9,681,989
55,518 1.30
15,619
2.4
2020 74,916 10,063,781
57,345 3.29
15,363
8.4
2021 74,596 10,690,422
60,316 5.18
15,636
4.0
2022 75,835 11,526,759
64,399 6.77
15,828
2.5
2023 75,671 11,807,120
65,563 1.81
15,438
2.6
2024'J 75,996 12,240,518
67,970 3.67
16,083
2.4
Sources and Notes:
Personal Income and Per Capita Personal Income based on metropolitan Iowa City / Coralville and based on figures from Bureau of
Economic Analysis. Personal Income expressed in thousands.
a Iowa City Community School District and local private schools
'Iowa Workforce Development Center
¢Iowa Retail Sales & Use Report, Iowa Department of Revenue and Finance. Fiscal year ending June 30.
5 Personal Income for 2024 and Per Capita Personal Income for 2024 is not available. Amounts projected
based on average increase
over previous 5 years.
"US Census Bureau Population number is not available for 2024.
Amounts projected based on an average over previous 9 years'
' Quarter reports were not yet available so amount projected based on average increase over previous 5 years.
Retail
Sales'
838,853,686
853,258,347
874,928,988
854,538,416
865,628,890
832,475,900
858,860,019
893,575,646
987,817,621
1,024,076,948
134
Employers
University of Iowa Hospitals & Clinics
University of Iowa s
Iowa City Community School District
Veterans Administration Medical Center
Procter & Gamble
City of Iowa City
ACT Inc. (formerly American College Testing Program)
NCS Pearson
Goodwill of the Heartland
System Unlimited
Mercy Hospital
Hy-Vee
Internaltion Automotive Components formerly Lear Corp
City of Iowa City, Iowa
Principal Employers
Current Year and Nine Years Ago
2015
Employees Rank
Percentage
- -
N/A
27,354 1
27.8
2,346 2
2.4
1,562 3
1.6
- -
N/A
990 8
1.0
1,089 7
1.1
1,200 5
12
- -
N/A
890 9
0.9
1,559 4
1.6
1,166 6
12
785 10
0.8
38,941
39.6
Total Employees 98,500
Sources:
Iowa City Area Development Group
Various Employers and documents
s Starting 2025 University of Iowa and University of Iowa Hospitals & Clinics are broken out separately.
Emplovees
15,500
10,300
2,000
2,000
1,300
988
985
800
638
500
35,011
94,400
2024
Rank
1
2
3
4
5
6
7
8
9
10
Percentage
16.4
10.9
2.1
2.1
1.4
1.0
1.0
0.8
0.7
0.5
N/A
N/A
N/A
36.9
135
City of Iowa City, Iowa
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full -Time Equivalent Employees as of June 30
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Public Safety
Police
105
105
105
105
107
107
109.26
110.76
110.76
113.26
Fire
64
64
64
64
64
64
64
64
64
66
Inspection Services
13.55
12.85
13.5
13.5
15.6
15.6
17.6
17.6
16.6
16.6
Public Works
Public Works Admin
2
2
2
2
2
2
2
2
2
2
Engineering2
12.1
12
16
16
16
16
18
18
18
19.4
Culture and Recreation
Parks and Rec Admin
2
2
2
2
2
2
2
2
2
2
Recreation
15.42
14.42
15.42
14.75
14
14.5
14.5
14.5
14.5
14.5
Parks
13
13
16
16
16
16
16
16
16
16
Forestry
3
3
3
3
5
5
7
7
7
7
Cemetery
3
3
3
3
3
3
3
3
3
3
CBD Maintenance
3
3
-
-
-
-
-
-
-
-
Library
45.13
44.77
46.17
46.17
46.17
46.05
45.92
45.92
45.92
45.92
Senior Center
6.5
6.5
7
7
7
7
7.76
7.76
7.76
7.76
Community and Economic Development
8.95
10.8
12.63
13.13
13.13
13.13
12.13
12.13
13.5
13.5
Economic Development
1
2
1
1
1
1
1
1
1
1
General Government
City Council
7
7
7
7
7
7
7
7
7
7
City Clerk
4
4
4
4
4
4
4
4
4
4
City Attorney
5.6
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
5.5
City Manager
6
10.5
10.5
9
9
9
13.89
14.89
15.26
17.26
Finance
22.47
23.07
23.13
22.13
22.28
22.28
22.28
22.28
22.28
22.28
Government Buildings
4.83
5.33
4.33
5
4
5
4
4
4
4
Special Revenue
Employee Benefits
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
Community Development
2.98
2.83
-
-
-
-
-
-
-
-
Traffic Engineering
4.15
3.9
4.5
3
3
3
3
3
4
4
Streets
25.5
25.25
25.5
29
29
29
29
29
29
29
MPOJC (formerly JCCOG)
5.6
4.7
4.7
4.7
5.2
5.2
5.2
5.2
5.2
5.2
Capital Projects Administration
5
4
-
-
-
-
-
-
-
-
Internal Service Funds
Information Technology
9.86
9.86
9.8
10.8
9.8
9.8
9.8
9.8
10.5
11
Equipment
10.75
10.75
10.75
10.75
10.75
10.75
11.75
12
11
11
Central Services
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
Risk Management
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
1.8
Business -Type Activities
Parking
26.25
23.13
21.63
21.63
21.38
19.63
21.38
21.38
21.88
22.88
Mass Transit
51.25
51.13
53.63
54.63
53.38
53.38
54.13
54.13
54.63
56.88
Wastewater Treatment
24.65
24.65
25.4
26
26
26
26
26
26
26.25
Water
32
32
31.75
31.75
31.75
31.75
31.25
31.25
31.25
32.25
Sanitation
35.85
33.35
31.5
31.5
32.76
34.76
35.26
35.51
36.51
37.51
Airport
1
1
1
1
1
1
1
1
1
1
Cable Television'
5.63
-
-
-
-
-
-
-
-
-
Stormwater
2.6
2.6
2.1
1.5
1.5
2.5
2
2
2
2.1
Housing Authority
10.19
10.19
9.6
9.6
9.5
9.5
10.62
10.62
11
12
Total
607.66
598.93
599.89
601.89
605.55
608.18
624.08
627.08
630.90
646.95
Source: City's Financial Plan
136
City of Iowa City, Iowa
Operating Indicators by Function
Last Ten Fiscal Years
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Public Safety
Police
Physical arrests
5,595
5,465
4,482
4,488
5,212
2,891
2,525
2,998
2,619
2,255
Traffic Violations
3,356
2,989
2,246
3,103
3,422
1,052
1,627
2,708
2,468
3,298
Fire
Number of calls answered
6,016
6,974
6,749
7,122
7,532
6,979
8,106
9,039
9,212
8,574
Inspections conducted
1,903
2,459
874
1,031
1,300
181
1,194
1,194
1,250
1,806
Parking
Parking Violations
65,196
57,549
62,930
50,346
61,330
48,042
45,727
69,502
72,491
97,412
Wastewater Treatment
Daily average treatment
inmilliongallons
9.76
10.48
8.32
7.77
10.97
8.58
7.93
7.38
7.80
7.58
Maximum daily capacity
of plant in million gallons
43.3
43.3
43.3
43.3
43.3
43.3
43.3
43.3
43.3
43.3
Number of sewer system
customers
24,533
25,085
25,485
26,069
26,270
26,576
26,892
27,021
27,105
27,172
Water
Daily average consumption
inmilliongallons
5.33
5.32
5.50
5.84
5.69
5.33
5.57
5.52
5.60
5.60
Maximum daily capacity of
plant in million gallons
16.7
16.7
16.7
16.7
16.7
16.7
16.7
16.7
16.7
16.7
Customers by Classification
Residential
23,089
23,638
24,025
24,595
24,818
25,133
25,452
25,588
25,555
25,612
Commercial
1,409
1,415
1,425
1,436
1,431
1,448
1,448
1,442
1,449
1,463
Industrial
14
14
14
15
15
15
15
15
15
15
Other
135
131
134
136
139
138
137
137
133
130
Total Customers
24,647
25,198
25,598
26,182
26,403
26,734
27,052
27,182
27,152
27,220
Sanitation
Number of Customers 14,811 15,620 15,917 15,960 16,112 16,180 16,330 16,481 16,606 16,681
Tonnage 9,210 9,476 9,623 9,694 8,989 9,682 10,339 10,247 9,747 9,742
Landfill
Tonnage 123,692 126,875 137,025 140,658 127,587 128,210 151,823 135,557 132,672 142,874
Sources: Various city divisions.
Notes:
I Numbers are based on a calendar year and 2024 year-to-date figures are compiled through 11/11/24 for FIRE and 11/04/24 for Police.
137
Public Safety
Police
Stations
Patrol units
Fire
Stations
Fire apparatus
Public Works
Streets
Miles
Street lights
Culture and Recreation
Library
Cemetery
Acreage
Parks
Acreage
Recreation
Recreation centers
Swimming pools
Ball diamonds
Tennis courts
Soccer fields
Pickle Ball Courts
Futsal Courts
Full Basketball Courts
Gaga Pits
Bocce Court
Parking
Facilities
Spaces
Wastewater Treatment
Miles of sanitary sewer
Miles of storm sewer
Number of treatment plants
Number of service connectors
Water
Miles of water mains
Number of city owned fire hydrants
Sanitation
Landfills
Acreage
Sources: Various city divisions.
City of Iowa City, Iowa
Capital Assets by Function
Last Ten Fiscal Years
2015
2017 2018 2019
2021
2024
2023
2016
2020
2022
1
1
1 1 1
1
1
1
1
1
20
20
24 23 23
23
23
23
23
23
4
4
4 4 4
4
4
4
4
4
11
10
10 10 10
10
10
10
10
10
281
283
286 288 292
293
295
298
299
300
3,412
3,412
3,412 3,307 3,166
3,202
3,246
3,227
3,287
3,270
1
1
1 1 1
1
1
1
1
1
1
1
1 1 1
1
1
1
1
1
40
40
40 40 40
40
40
40
40
40
46
46
49 50 51
56
56
58
58
58
1,897
1,902
1,932 1,942 1,947
1,950
1,980
1,987
1,987
2,008
2
2
2 2 2
2
2
2
2
2
3
3
3 3 3
3
3
3
3
3
27
27
27 27 27
27
27
27
27
27
12
12
9 9 9
9
9
9
9
8
20
20
20 20 20
20
20
20
21
21
8 8 8
8
8
8
8
9
2 2 2
2
2
2
2
2
3 3 3
6
6
6
6
6
2 2
2
2
2
2
2
5
5
6 6 6
6
6
6
6
6
3,086
3,086
3,686 3,686 3,686
3,686
3,686
3,686
3,686
3,686
300
301
304 306 307
308
310
312
313
314
133
136
139 140 142
144
146
147
148
150
1
1
1 1 1
1
1
1
1
1
24,533
25,085
25,485 26,069 26,270
26,576
26,892
27,021
26,995
27,062
273
275
277 279 281
283
286
288
289
291
3,415
3,447
3,503 3,529 3,564
3,611
3,647
3,687
3,717
3,749
1
1
1 1 1
1
1
1
1
1
418
418
418 418 418
418
418
418
418
418
138
le
Compliance
Sect40
ion
Tab
Bohnsack & Frommelt LLP
Certified Public Accountants
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards
To the Honorable Mayor and
Members of City Council
City of Iowa City, Iowa
Iowa City, Iowa
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States (Government Auditing Standards), 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, as of and for the year ended June 30,
2024, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements and have issued our report thereon dated December 3, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Iowa City, Iowa's
internal control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of City of Iowa City, Iowa's internal
control. Accordingly, we do not express an opinion on the effectiveness of City of Iowa City, Iowa's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis, A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
139
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Iowa City, Iowa's financial statements
are free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions
was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards_
Comments involving statutory and other legal matters about the City's operations for the year ended June
30, 2024 are based exclusively on knowledge obtained from procedures performed during our audit of the
financial statements of the City. Since our audit was based on tests and samples, not all transactions that
might have had an impact on the comments were necessarily audited. The comments involving statutory
and other legal matters are not intended to constitute legal interpretations of those statutes.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City of Iowa City,
Iowa's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City of Iowa City, Iowa's internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
Moline, Illinois
December 3, 2024
`ElN
Bohnsack & Frommelt LLP
Certified Public Accountants
Independent Auditor's Report on Compliance For
Each Major Federal Program and On Internal Control
Over Compliance Required By the Uniform Guidance
To the Honorable Mayor and
Members of City Council
City of Iowa City, Iowa
Iowa City, Iowa
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Iowa City, Iowa's (the City) compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct
and material effect on each of the City's major federal programs for the year ended June 30, 2024. The
City's major federal programs are identified in the summary of auditor's results section of the
accompanying Schedule of Findings and Questioned Costs.
In our opinion, City of Iowa City, Iowa complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the City's compliance with the
compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's
federal programs.
MIN
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
OAA , Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncom piiance resulting from fraud is
higher than for that resulting from error; as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material, if there is a substantial likelihood that, individually or in the
aggregate, it would influence tha judgment made by a reasonable user of the report on compliance about
the City's oompliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Goverr meat Auditing Standards, and the Uniform
Guidance, we
i exercise professional judgment and maintain professional skepticism throughout the audit,
• identity and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on
a test basis, evidence regarding the Uity's compliance with the compliance requirements referred
to above and performing such other procedures as we considered necessary in the
circumstances_
• obtain an understanding of the City's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in tha circumstances and to test and report
on intemaI control over compliance in accordance Mth the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the City's intemal control over
compliance_ Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit_
Report on Internal Control Over Compliance
A deficiency in intemai control over compliance exists when the design or operation of a control over
compliance does not allow management or employees. in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal prop ram on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
irrfemal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important anough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Oomplianas section above and was not designed to identify all
deficiencies in internal control over corn paiance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
`Y,
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Moline, Illinois
December 3, 2024
143
THIS PAGE INTENTIONALLY LEFT BLANK
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Federal Grantor/Pass-Through Grantor/
Program Title or Cluster Title
Federal
Assistance
Listing
Number
Pass -Through
Entity Identifying
Number
Provided to
Subrecipients
Total
Federal
Expenditures
U.S. Department of Agriculture:
Indirect:
Pass -Through Iowa Department of Natural Resources:
Community Forestry Grant Program
10.664
n/a
$
$ 51000
Total U.S. Department of Agriculture
5,000
U.S. Department of Housing
and Urban Development
Direct:
Community Development Block Grants (CDBG)-
Entitlement Grants Cluster:
CDBG/Entitlement Grants
14.218
B-21-MC-19-0009
107,482
126,977
CDBGIEntitlement Grants
14.218
B-22-MC-19-0009
254,091
495,040
CDBG/Entitlement Grants
14.218
B-23-MC-19-0009
186,321
306,425
CDBGIEntitlement Grants
14.218
B-24-MC-19-0009
116
145
Subtotal CDBG/Entitlement Grants Cluster
548,010
928,587
Home Investment Partnerships Program
14.239
M-18-MC-190205
7,606
7,606
Home Investment Partnerships Program
14.239
M- 1 9-MC-1 90205
17,394
17,394
Home Investment Partnerships Program
14.239
M-20-MC-190205
139,866
139,866
Home Investment Partnerships Program
14.239
M-21-MC-190205
48,900
48,900
Home Investment Partnerships Program
14,239
M-21-MP-190205
-
7,564
Home Investment Partnerships Program
14.239
M-22-MC-190205
-
41,834
Home Investment Partnerships Program
14.239
M-23-MC-190205
132,702
162,841
Home Investment Partnerships Program
14.239
M-24-MC-190205
27,596
29,857
374,064
455,862
Public and Indian Housing
14.850
IA022-0000011 B❑
-
46
Public and Indian Housing
14.850
IA022-00000123D
148,261
148,307
Housing Voucher Program Cluster:
Section 8 Housing Choice Vouchers
14.871
IA022EF
60,511
Section 8 Housing Choice Vouchers
14.871
IA022EH
458,152
Section 8 Housing Choice Vouchers
14.871
IA022ES
38,735
Section 8 Housing Choice Vouchers
14,871
IA022VO0286
12,549
Section 8 Housing Choice Vouchers
14.871
IA022AF
15,000
Section 8 Housing Choice Vouchers
14.871
IA022VO
11,640,613
12,225,560
Mainstream Vouchers
14.879
IA0228FR
66,431
Mainstream Vouchers
14.879
IAD22DV
470,060
538,491
Subtotal Housing Voucher Program Cluster
12,762,051
Public Housing Capital Fund
14.872
IA05PO22501-22
165,504
Family Self -Sufficiency
Family Self -Sufficiency
Indirect:
Pass -through Iowa Economic Development Authority,
COVID-19 Community Development Block Grants
Total U.S. Department of Housing
and Urban Development
(Continued)
14,896 FSS221A4192 123,618
14.896 FSS23IA555601 97,866
221,484
14.228 20-CVE-005 2,036
922,074 14.683, 831
144
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards (Continued)
Year Ended June 30, 2024
Federa
Assistance
Pass -Through
Total
Federal Grantor/Pass-Through Grantor/
Listing
Entity Identifying
Provided to Federal
Program Title or Cluster Title
Number
Number
Subrecipients Expenditures
U.S. Department of Justice
Direct:
Bulletproof Vest Partnership Program
16.607
2023BUBX23034675
$ _ $ 3,383
Bulletproof Vest Partnership Program
16.607
2022BUBX22029447
- 6,763
Equitable Sharing Program
Indirect:
Pass -through Iowa Department of Justice:
Violence Against Women Formula Grants
Pass through Iowa Governor's Office of Drug
Control Policy:
Public Safety Partnership and
Community Policing Grants
Public Safety Partnership and
Community Policing Grants
Edward Byrne Memorial Justice Assistance Grant
Total U.S. Department of Justice
U.S. Department of Transportation
Direct:
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Federal Transit Cluster:
Federal Transit -Formula Grants
Federal Transit -Formula Grants
Federal TransitFormulaGrants
Federal Transit -Formula Grants
Subtotal Federal Transit Cluster
Indirect:
Pass -through Iowa Department of Transportation:
Highway Planning and Construction Program
Highway Planning and Construction Program
Highway Planning and Construction Program
Pass -through Iowa Department of Transportation
and Metropolitan Planning Organization of Johnson County:
Highway Planning and Construction Program
(Continued)
- 10,146
16.922 21,418
16.588 LE-2024-00064 - 75,307
16,710
21-CAMP-06
6,752
7,916
16.710
22-COPS Heroin-03
8,665
15,502
15,417
23,418
16.738
21-JAG-502085
63,333
95,000
78,750
225,289
20.106
3-19-0047-031-2021
-
(45,513)
20.106
3-19-0047-025-2019
(830)
20.106
3-19-0047-034-2022
38,819
20.106
3-19-0047-035-2023
426,428
20.106
3-19-0047-036-2023
163,730
20.106
3-19-0047-037-2024
136,970
719,604
20.507
IA-2020-029-01-00
-
1,509,870
20.507
IA-2023-05-00
-
599,878
20.507
IA-2024-008-00
-
1,669,806
20.507
IA-2023-009-00
-
782,974
-
4,562,528
20.205
BROS-3715(664)- -8J-52
-
22,211
20,205
BRM-3715(667)- -8N-52
-
723,278
20.205
STP-U-3715(669)- -70-52
-
356,595
20,205
24MPO-MPOJC
-
168,753
1,270,837
iii
City of Iowa City, Iowa
Schedule of Expenditures of Federal Awards (Continued)
Year Ended June 30, 2024
Federa
Assistance
Pass -Through
Total
Federal Grantor/Pass-Through Grantor!
Listing
Entity Identifying
Provided to Federal
Program Title or Cluster Title
Number
Number
Subrecipients Expenditures
U.S. Department of Transportation (Continued)
Indirect:
Metropolitan Transportation Planning and State and Non -
Metropolitan Planning and Research
20.505
24MPO-MPOJC
$ $ 61,247
Pass -through Iowa Department of Transportation:
Transit Services Programs Cluster:
Enhanced Mobility of Seniors and Individuals
with Disabilities
20,513
IA-202 3-006-0 1 -00-S FY24
177,523
Subtotal Transit Services Programs Cluster
177,523
Pass -through Iowa Department of Public Safetyl
Governor's Traffic Safety Bureau
Highway Safety Cluster:
State and Community Highway Safety
20.600
PAP-402-PT-2024, Task 05-40-40
31,954
National Priority Safety Programs
20.600
PAP-402-AL-2024, Task 02-40-40
22,952
Subtotal Highway Safety Cluster
54,906
Total U.S. Department of Transportation
6,846,645
U.S. Department of the Treasury
Direct:
COVID-19 Coronavirus State and Local Fiscal
Recovery Funds
21,027
NIA
853,357 11,314,982
U.S. Department of Energy
Direct:
Energy Efficiency and Community
Block Grant
81.128
EECEQ-00083
19,737
Total Expenditures of Federal Awards
See Notes to the Schedule of Expenditures of Federal Awards.
$ 1,854,181 $ 33.095,484
City of Iowa City, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant
activity of the City under programs of the federal government for the year ended June 30, 2024. The
information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial position,
changes in net position or cash flows of the entity.
Note 2. summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of accounting for
governmental funds and accrual basis of accounting for proprietary funds. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the
schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Expenditures of federal awards are recognized in the accounting period when
the liability is incurred and has met the eligibility criteria of the federal grant.
Revenue from federal awards is recognized when the City has done everything necessary to establish its
right to the revenue. In the governmental funds, revenue from federal grants is recognized when the
revenue is both measurable and available. In proprietary funds, revenue from federal grants is
recognized when it is earned.
Pass -through entity identifying numbers are presented where available.
Nate 3. Indirect Cost Rate
The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform
Guidance.
MIN
City of Iowa City, Iowa
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2024
Not applicable.
I r 1
MOWN%
CITY OF IOWA CITY
410 East hVashington Street
101va City, Iowa 52240- 1 82G
(319) 356-5000
(319) 356-5009 FAX
www.icgov.org
Corrective Action Plan or
Findings Status Other Explanation
148
THIS PAGE INTENTIONALLY LEFT BLANK
City of Iowa City, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
I. Summary of the Independent Auditor's Results
Financial Statements
Type of auditor's report issued:
Internal control over financial reporting
Unmodified
• Material weakness(es) identified? ❑ Yes 0 No
• Significant deficiency identified? ❑ Yes 0 None Reported
• Noncompliance material to financial statements noted? ❑ Yes 0 No
Federal Awards
Internal control over major programs:
• Material weakness{es) identified? ❑ Yes 0 No
• Significant deficiency identified? ❑ Yes p None Reported
Type of auditor's report issued on compliance for major programs: Unmodified
. Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516{a)? ❑ Yes 0 No
Identification of major programs:
Federal Assistance
Listing Number Name of Federal Program or Cluster
Housing Voucher Program Cluster:
14.871 Section 8 Housing Choice Vouchers
14.879 Mainstream Vouchers
21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Fund
Dollar threshold used to distinguish between type A and type B programs: $992,865
Auditee qualified as low -risk auditee? p Yes ❑ No
(Continued)
City of Iowa City, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2024
II. Findings Relating to the Basic Financial Statements as Required to be Reported in
Accordance with Generally Accepted Government Auditing Standards
A. Internal Control
No matters reported.
B. Instances of Noncompliance
No matters reported.
III. Findings and Questioned Costs for Federal Awards
A. Internal Control for Federal Awards
No matters reported.
B. Instances of Noncompliance
No matters reported.
IV. Other Findings Related to Required Statutory Reporting
IV-A-24 Certified Budget — Expenditures for the year ended June 30, 2024 did not exceed the amounts
budgeted.
IV-13-24 Questionable Expenditures — No expenditures were noted that we believe may not meet the
requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979.
IV-C-24 Travel Expenses — No expenditures of City money for travel expenses of spouses of City
officials or employees were noted.
IV-D-24 Business Transactions — No business transactions between the City and City officials or
employees were noted except the following:
Official Transaction Description Amount
Bruce Teague, Mayor
Owner Charm Homes LLC Landlord Rents $15,918
Andrew Martin, Board of Appeals member
Owner Martin Construction On Behalf HOME Loan Payment $22,080
The transactions do not appear to represent a conflict of interest in accordance with Chapter
362.5(3)(g) of the Code of Iowa.
IV-E-24 Restricted Donor Activity— No transactions were noted between City, City officials, City
employees and restricted donors in compliance with Chapter 68B of the Code of Iowa.
IV-17-24 Bond Coverage — Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to ensure that the coverage
is adequate for current operations.
IV-G-24 Council Minutes — No transactions requiring Council approval which had not been approved by
the Council were noted.
(Continued)
` 11
City of Iowa City, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2024
IV-H-24 Deposits and Investments — No instances of noncompliance with the deposit and investment
provisions of Chapter 12B and Chapter 12C of the Code of Iowa and the City's investment policy were
noted.
IV-1-24 Revenue Notes — There were no instances of noncompliance with revenue note provisions_
IV-J-24 Annual Urban Renewal Report — The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1.
IV-K-24 Payment of General Obligation Bonds — The City appears to be in compliance with Chapter
384.4 of the Code of Iowa.
IN
THIS PAGE INTENTIONALLY LEFT BLANK
City of Iowa City, Iowa
Corrective Action Plan
Year Ended June 30, 2024
Not applicable.
I r 1
MOWN%
CITY OF IOWA CITY
410 East hVashington Street
101va City, Iowa 52240- 1 82G
(319) 356-5000
(319) 356-5009 FAX
www.icgov.org
Anticipated
Date of Completion
and Responsible
Findings Corrective Action Plan Contact Person
IM,
153
City oflowa City, Johnson County, Iowa
$14,535, 000 General Obligation Bonds, Series 2025
APPENDIX B
DESCRIBING BOOK -ENTRY -ONLY ISSUANCE
The Depository Trust Company, New York, New York ("DTC"), will act as securities depository for the Bonds
(the "Securities"). The Securities will be issued as fully registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered
Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and
will be deposited with DTC.
1. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New
York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing
agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and
provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues,
and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC.
DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in
deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants'
accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S.
and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations.
DTC is a wholly owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding
company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are
registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also
available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly
("Indirect Participants"). DTC has an S&P Global Ratings rating of AA+. The DTC Rules applicable to its Participants
are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
2. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security
(`Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not
receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect
Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of
Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities,
except in the event that use of the book -entry system for the Securities is discontinued.
3. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered
in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other
DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of
the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for
keeping account of their holdings on behalf of their customers.
City oflowa City, Johnson County, Iowa
$14,535, 000 General Obligation Bonds, Series 2025
4. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant
events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security
documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for
their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish
to provide their names and addresses to the bond registrar and request that copies of notices be provided directly to them.
5. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
6. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities
unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
7. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co.,
or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent,
on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for
the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant
and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from
time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee
as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments
to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
8. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant
to transfer the Participant's interest in the Securities, on DTC's records, to any Tender/Remarketing Agent. The requirement
for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied
when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -
entry credit of tendered Securities to any Tender/Remarketing Agent's DTC account.
9. DTC may discontinue providing its services as depository with respect to the Securities at any time by
giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor depository
is not obtained, Security certificates are required to be printed and delivered.
10. The City may decide to discontinue use of the system of book -entry -only transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
11. The information in this section concerning DTC and DTC's book -entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof
City oflowa City, Johnson County, Iowa
$14,535, 000 General Obligation Bonds, Series 2025
APPENDIX C
DRAFT FORM OF BOND COUNSEL OPINION
C-1
Ahlers & Cooney, P.C.
A H L E R 5 C O❑ N E Y Attorneys at Law
100 Court Avenue, Suite 600
A T T 0 R N E Y 5 Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
DRAFT
We hereby certify that we have examined a certified transcript of the proceedings of the
City Council and acts of administrative officers of the City of Iowa City, State of Iowa (the
"Issuer"), relating to the issuance of General Obligation Bonds, Series 2025A, by said City, dated
, 2025, in the denomination of $5,000 or multiples thereof, in the aggregate
amount of $ (the 'Bonds").
We have examined the law and such certified proceedings and other papers as we deem
necessary to render this opinion as bond counsel to the Issuer.
As to questions of fact material to our opinion, we have relied upon representations of the
Issuer contained in the resolution authorizing issuance of the Bonds (the "Resolution") and in the
certified proceedings and other certifications of public officials furnished to us, without
undertaking to verify the same by independent investigation.
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opinion, under existing law, as follows:
1. The Issuer is duly created and validly existing as a body corporate and politic and
political subdivision of the State of Iowa with the corporate power to adopt and perform the
Resolution and issue the Bonds.
2. The Bonds are valid and binding general obligations of the Issuer.
3. All taxable property in the territory of the Issuer is subject to ad valorem taxation
without limitation as to rate or amount to pay the Bonds. Taxes have been levied by the
Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual
tax levy the principal and interest coming due on the Bonds to the extent the necessary funds are
not provided from other sources.
4. Interest on the Bonds is excludable from gross income for federal income tax
purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and
is not an item of tax preference for purposes of the federal alternative minimum tax imposed on
individuals; however, such interest may be taken into account for the purpose of computing the
alternative minimum tax imposed on certain corporations. The opinion set forth in the preceding
sentence is subject to the condition that the Issuer comply with all requirements of the Code that
must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be,
and continue to be, excludable from gross income for federal income tax purposes under Section
103 of the Code. The Issuer has covenanted to comply with all such requirements. Failure to
comply with certain of such requirements may cause interest on the Bonds to be includable in
gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.
Wshard & Baily — 1888, Guernsey & Baily— 1893, Baily & Stipp — 1901, Stipp, Perry, Bannister & Starzinger— 1914, Bannister, Carpenter,
Ahlers & Cooney — 1950, Ahlers, Cooney, Dorweiler, Allbee, Haynie & Smith — 1974, Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C. — 1990
DRAFT
City of Iowa City, State of Iowa
General Obligation Bonds, Series 2025A
Page 2
We express no opinion regarding the accuracy, adequacy, or completeness of the Official
Statement or other offering material relating to the Bonds. Further, we express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth
herein.
The rights of the owners of the Bonds and the enforceability of the Bonds are limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the rights
and remedies of creditors, and by equitable principles, whether considered at law or in equity.
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
Respectfully submitted,
4918-0985-1440-1\10714-151
City oflowa City, Johnson County, Iowa
$14,535, 000 General Obligation Bonds, Series 2025
APPENDIX D
DRAFT CONTINUING DISCLOSURE CERTIFICATE
D-1
Continuing Disclosure Certificate
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Iowa City, State of Iowa (the "Issuer"), in connection with the issuance
of $ General Obligation Bonds, Series 2025A (the 'Bonds") dated
2025. The Bonds are being issued pursuant to a Resolution of the Issuer
approved on , 2025 (the "Resolution"). The Issuer covenants and agrees as
follows:
Section 1. Purpose of the Disclosure Certificate_ Interpretation. This Disclosure
Certificate is being executed and delivered by the Issuer for the benefit of the Holders and
Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in
complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Certificate shall be governed by,
construed and interpreted in accordance with the Rule, and, to the extent not in conflict with the
Rule, the laws of the State. Nothing herein shall be interpreted to require more than required by
the Rule.
Section 2. Definitions. In addition to the definitions set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Financial Information" shall mean financial information or operating data of the
type included in the final Official Statement, provided at least annually by the Issuer pursuant to,
and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly,
to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons
holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the
owner of any Bonds for federal income tax purposes.
"Business Day" shall mean a day other than a Saturday or a Sunday or a day on which
banks in Iowa are authorized or required by law to close.
"Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in
writing by the Issuer and which has filed with the Issuer a written acceptance of such
designation.
"Financial Obligation" shall mean a (i) debt obligation; (ii) derivative instrument entered
into in connection with, or pledged as security or a source of payment for, an existing or planned
debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include
municipal securities as to which a final official statement has been provided to the MSRB
consistent with S.E.C. Rule 15c2-12.
"Holders" shall mean the registered holders of the Bonds, as recorded in the registration
books of the Registrar.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005.
"National Repository" shall mean the MSRB's Electronic Municipal Market Access
website, a/k/a "EMMA" (emma.msrb.org).
"Official Statement" shall mean the Issuer's Official Statement for the Bonds, dated
, 2025.
"Participating Underwriter" shall mean any of the original underwriters of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
"Rule" shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission
(S.E.C.) under the Securities Exchange Act of 1934, and any guidance and procedures
thereunder published by the S.E.C., as the same may be amended from time to time.
"State" shall mean the State of Iowa.
Section 3. Provision of Annual Financial Information.
a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two
hundred ten (210) days after the end of the Issuer's fiscal year (presently June 30th),
commencing with information for the 2024/2025 fiscal year, provide to the National
Repository an Annual Financial Information filing consistent with the requirements of
Section 4 of this Disclosure Certificate. The Annual Financial Information filing must be
submitted in such format as is required by the MSRB (currently in "searchable PDF"
format). The Annual Financial Information filing may be submitted as a single document
or as separate documents comprising a package. The Annual Financial Information filing
may cross-reference other information as provided in Section 4 of this Disclosure
Certificate; provided that the audited financial statements of the Issuer may be submitted
separately from the balance of the Annual Financial Information filing and later than the
date required above for the filing of the Annual Financial Information if they are not
available by that date. If the Issuer's fiscal year changes, it shall give notice of such
change in the same manner as for a Listed Event under Section 5(c).
b) If the Issuer is unable to provide to the National Repository the Annual
Financial Information by the date required in subsection (a), the Issuer shall send a notice
to the Municipal Securities Rulemaking Board, if any, in substantially the form attached
as Exhibit A.
c) The Dissemination Agent shall:
i. each year file Annual Financial Information with the National
Repository; and
ii. (if the Dissemination Agent is other than the Issuer), file a report with
the Issuer certifying that the Annual Financial Information has been filed pursuant
to this Disclosure Certificate, stating the date it was filed.
Section 4. Content of Annual Financial Information. The Issuer's Annual Financial
Information filing shall contain or incorporate by reference the following:
a) The last available audited financial statements of the Issuer for the prior fiscal
year, prepared in accordance with generally accepted accounting principles promulgated
by the Financial Accounting Standards Board as modified in accordance with the
governmental accounting standards promulgated by the Governmental Accounting
Standards Board or as otherwise provided under State law, as in effect from time to time,
or, if and to the extent such financial statements have not been prepared in accordance
with generally accepted accounting principles, noting the discrepancies therefrom and the
effect thereof. If the Issuer's audited financial statements for the preceding years are not
available by the time Annual Financial Information is required to be filed pursuant to
Section 3(a), the Annual Financial Information filing shall contain unaudited financial
statements of the type included in the final Official Statement, and the audited financial
statements shall be filed in the same manner as the Annual Financial Information when
they become available.
b) A table, schedule or other information prepared as of the end of the preceding
fiscal year, of the type contained in the final Official Statement under the captions:
• Debt Limit.
• Direct Debt.
• General Obligation Debt.
• Statement of Bonded Indebtedness.
• Other Obligations.
• Percentages for Taxable Valuation After Rollbacks.
• Building Permits.
• Property Valuations and Trend of Valuations -Actual (100%)
Valuations for the City.
• Property Valuations and Trend of Valuations -Taxable ("Rollback")
Valuations for the City.
• Levies and Tax Collections.
• Larger Taxpayers.
• Tax Rates.
• Statement of Net Position -Governmental Activities.
• Statement of Activities -Governmental Activities.
• Balance Sheet -General Fund.
• Statement of Revenues, Expenditures and Changes in Fund
Balance -General Fund.
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public entities,
which have been filed with the National Repository. The Issuer shall clearly identify each such
other document so included by reference.
Section 5. Reporting of Significant Events.
a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds
in a timely manner not later than 10 Business Days after the day of the occurrence of the
event:
i. Principal and interest payment delinquencies;
ii. Non-payment related defaults, if material;
iii. Unscheduled draws on debt service reserves reflecting financial
difficulties;
iv. Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
v. Substitution of credit or liquidity providers, or their failure to perform;
vi. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to the
tax-exempt status of the Series Bonds, or material events affecting the tax-exempt
status of the Bonds;
vii. Modifications to rights of Holders of the Bonds, if material;
viii. Bond calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
ix. Defeasances of the Bonds;
x. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
xi. Rating changes on the Bonds;
xii. Bankruptcy, insolvency, receivership or similar event of the Issuer;
xiii. The consummation of a merger, consolidation, or acquisition
involving the Issuer or the sale of all or substantially all of the assets of the Issuer,
other than in the ordinary course of business, the entry into a definitive agreement
to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material;
xiv. Appointment of a successor or additional trustee or the change of
name of a trustee, if material;
xv. Incurrence of a Financial Obligation of the Issuer, if material, or
agreement to covenants, events of default, remedies, priority rights, or other
similar terms of a Financial Obligation of the Issuer, any of which affect security
holders, if material; and
xvi. Default, event of acceleration, termination event, modification of
terms or other similar events under the terms of a Financial Obligation of the
Issuer, any of which reflect financial difficulties.
b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event, the Issuer shall determine if the occurrence is subject to notice only if material,
and if so shall as soon as possible determine if such event would be material under
applicable federal securities laws.
c) If the Issuer determines that knowledge of the occurrence of a Listed Event is
not subject to materiality, or determines such occurrence is subject to materiality and
would be material under applicable federal securities laws, the Issuer shall promptly, but
not later than 10 Business Days after the occurrence of the event, file a notice of such
occurrence with the Municipal Securities Rulemaking Board through the filing with the
National Repository.
Section 6. Termination of Reporting Obligation. The Issuer's obligations under this
Disclosure Certificate with respect to each Series of Bonds shall terminate upon the legal
defeasance, prior redemption or payment in full of all of the Bonds of that Series or upon the
Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of
legislative action or final judicial action or administrative actions or proceedings, the failure of
the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in
violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as
amended.
Section 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate,
and may discharge any such Agent, with or without appointing a successor Dissemination Agent.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or
report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination
Agent shall be the Issuer.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, provided that the following conditions are satisfied:
a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a),
it may only be made in connection with a change in circumstances that arises from a
change in legal requirements, change in law, or change in the identity, nature or status of
an obligated person with respect to the Bonds, or the type of business conducted;
b) The undertaking, as amended or taking into account such waiver, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of
the Rule at the time of the original issuance of the Bonds, after taking into account any
amendments or interpretations of the Rule, as well as any change in circumstances; and
c) The amendment or waiver either (i) is approved by the Holders of the Bonds in
the same manner as provided in the Resolution for amendments to the Resolution with
the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond
counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer
shall describe such amendment in the next Annual Financial Information filing, and shall
include, as applicable, a narrative explanation of the reason for the amendment or waiver and its
impact on the type (or in the case of a change of accounting principles, on the presentation) of
financial information or operating data being presented by the Issuer. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements,
(i) notice of such change shall be given in the same manner as for a Listed Event under Section
5(c), and (ii) the Annual Financial Information filing for the year in which the change is made
will present a comparison or other discussion in narrative form (and also, if feasible, in
quantitative form) describing or illustrating the material differences between the financial
statements as prepared on the basis of the new accounting principles and those prepared on the
basis of the former accounting principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Financial Information filing or notice of
occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate.
If the Issuer chooses to include any information in any Annual Financial Information filing or
notice of occurrence of a Listed Event in addition to that which is specifically required by this
Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such
information or include it in any future Annual Financial Information filing or notice of
occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the Issuer to comply with any provision
of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such
actions as may be necessary and appropriate, including seeking mandate or specific performance
by court order, to cause the Issuer to comply with its obligations under this Disclosure
Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any
person for any default hereunder and are hereby waived to the extent permitted by law. A
default under this Disclosure Certificate shall not be deemed an event of default under the
Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of
the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Duties. Immunities and Liabilities of Dissemination Aizent. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which it may
incur arising out of or in the exercise or performance of its powers and duties hereunder,
including the costs and expenses (including attorneys' fees) of defending against any claim of
liability, but excluding liabilities due to the Dissemination Agent's negligence or willful
misconduct. The obligations of the Issuer under this Section shall survive resignation or removal
of the Dissemination Agent and payment of the Bonds.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial
Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 13. Rescission Rights. The Issuer hereby reserves the right to rescind this
Disclosure Certificate without the consent of the Holders in the event the Rule is repealed by the
S.E.C. or is ruled invalid by a federal court and the time to appeal from such decision has
expired. In the event of a partial repeal or invalidation of the Rule, the Issuer hereby reserves the
right to rescind those provisions of this Disclosure Certificate that were required by those parts
of the Rule that are so repealed or invalidated.
Date: day of , 2025.
City of Iowa City, State of Iowa
M.
Attest:
City Clerk
Mayor
Exhibit A
Notice To National Repository Of Failure To File Annual Financial Information
Name of Issuer: City of Iowa City, Iowa.
Name of Bond Issue: $
Dated Date of Issue: 2025
General Obligation Bonds, Series 2025A
Notice Is Hereby Given that the Issuer has not provided Annual Financial Information
with respect to the above -named Bonds as required by Section 3 of the Continuing Disclosure
Certificate delivered by the Issuer in connection with the Bonds. The Issuer anticipates that the
Annual Financial Information will be filed by
Dated: day of , 20
City of Iowa City, State of Iowa
By:
Its:
4934-5814-7376-1\10714-151
OFFICIAL BID FORM
City of Iowa City May 6, 2025
410 E. Washington Street Speer Financial, Inc.
Iowa City, IA 52240 Facsimile: (319) 291-8628
City Council:
For the $14,535,000* General Obligation Bonds, Series 2025A (the "Bonds"), of the City of Iowa City, Johnson County, Iowa
(the "City"), as described in the annexed Official Terms of Offering, which is expressly made a part of this bid, we will pay you
$ (no less than $14,418,720). The Bonds are to bear interest at the following respective rates (each a multiple of
1/8 or 1/100 of 1%) for the Bonds of each designated maturity.
AMOUNTS* AND MATURITIES — JUNE 1
$2,200,000 ......... 2026 % $1,370,000 ......... 2029 % $1,370,000......... 2033 %
1,375,000 ......... 2027 % 1,370,000 ......... 2030 % 1,370,000 ......... 2034 %
1,370,000 ......... 2028 % 1,370,000 ......... 2031 % 1,370,000 ......... 2035 %
1,370,000 ......... 2032 %
Any consecutive maturities may be aggregated into term bonds at the option of the bidder, in which case the mandatory redemption provisions shall be on the same schedule as above.
Maturities: Term Maturity Maturities: Term Maturity
Maturities: Term Maturity Maturities: Term Maturity
*Subject to principal adjustment in accordance with the Official Terms of Offering.
In submitting this bid, we represent that (i) this bid constitutes a firm offer to purchase the Bonds, and (ii) we have an established
industry reputation for underwriting new issuances of municipal bonds and notes.
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal
opinion of Ahlers & Cooney, P.C., Des Moines, Iowa. The City will pay for the legal opinion. The Purchaser agrees to pay the fee
charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds.
As evidence of our good faith, if we are the winning bidder, we will wire transfer the amount of TWO PERCENT OF PAR
(the "Deposit") WITHIN TWO HOURS after the bid opening time to the City's good faith bank and under the terms provided in the
Official Terms of Offering for the Bonds. Alternatively, we have wire transferred or enclosed herewith a check payable to the City in
the amount of the Deposit under the terms provided in the Official Terms of Offering for the Bonds.
Attached hereto is a list of members of our account on whose behalf this bid is made.
Form of Deposit (Check One) Account Manaeer Information Bidders Option Insurance
Prior to Bid Opening:
Certified/Cashier's Check
Wire Transfer
Underwriter/Bank
[ ] Address
Within TWO Hours of Bid Opening:
Wire Transfer [ ]
Amount: $290,700
Authorized Rep
City State/Zip
Direct Phone ( 1
FAX Number
E-Mail Address
We have purchased
insurance from:
Name of Insurer
(Please fill in)
Premium-
Maturities: (Check One)
U Years
tJ All
The foregoing bid was accepted and the Bonds sold by resolution of the City on May 6, 2025, and receipt is hereby
acknowledged of the good faith Deposit which is being held in accordance with the terms of the annexed Official Terms of Offering.
ATTEST: CITY OF IOWA CITY
JOHNSON COUNTY, IOWA
City Clerk
Mayor
---------------NOT PART OF THE BID---------------
(Calculationo true interest cost)
Gross Interest
$
Less Premium/Plus Discount
$
True Interest Cost
$
True Interest Rate
o
TOTAL BOND YEARS
AVERAGE LIFE Years
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
OFFICIAL TERMS OF OFFERING
$14,535,000*
City of Iowa City
Johnson County, Iowa
General Obligation Bonds, Series 2025A
The City of Iowa City, Johnson County, Iowa, (the "City"), will receive electronic bids on the SpeerAuction
("SpeerAuction") website address "www.SpeerAuction.com" for its $14,535,000* General Obligation Bonds, Series 2025A
(the "Bonds"), on an all or none basis between 10:30 A.M. and 11:00 A.M., C.D.T, Tuesday, May 6, 2025. To bid
electronically, bidders must have: (1) completed the registration form on the SpeerAuction website, and (2) requested and
received admission to the City's sale (as described below). The City will also receive sealed bids for the Bonds, on an all
or none basis, at the office of the Finance Director, City Hall, 410 E. Washington Street, Iowa City, Iowa, before 11:00
A.M., C.D.T, Tuesday, May 6, 2025. The City will also receive facsimile bids at (319) 291-8628 or (319) 341-4008 for the
Bonds, on an all or none basis, before 11:00 A.M., C.D.T, Tuesday, May 6, 2025. Upon receipt, facsimile bids will be
sealed and treated as sealed bids, and along with all other sealed bids will be publicly opened and, together with any
electronic bids, read.
Award will be made or all bids rejected at a meeting of the City on that date. The City reserves the right to reject
all bids, to reject any bid proposal not conforming to this Official Terms of Offering, and to waive any irregularity or
informality with respect to any bid. Additionally, the City reserves the right to modify or amend this Official Terms of
Offering; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the
date and time for receipt of bids on the Bonds and any such modification or amendment will be announced on the
Amendments Page of the SpeerAuction webpage and through Thomson Municipal News.
The Bonds will constitute valid and legally binding obligations of the City payable both as to principal and interest
from ad valorem taxes levied against all taxable, real property within the corporate limits of the City without limitation as
to rate or amount, all except as limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws relating
to the enforcement of creditors' rights generally and except that enforcement by equitable and similar remedies, such as
mandamus, is subject to the exercise of judicial discretion.
*ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER DETERMINA770N OF BEST BID. The aggregate principal amount of the Bonds, and each scheduled maturity
thereof, are subject to increase or reduction by the City or its designee after the determination of the Winning Bidder. The City may increase or decrease each maturity
in increments of $5, 000, but the total amount to he issued will not exceed $14,535,100. Interest rates specified by the Winning Bidder for each maturity will not change.
Final adjustments shall he in the sole discretion of the City.
The dollar amount of the purchase price proposed by the Winning Bidder will he changed if the aggregate principal amount of the Bonds is adjusted as described above.
Any change in the principal amount of any maturity of the Bonds will he made while maintaining, as closely as possible, the Winning Bidder's net compensation,
calculated as a percentage of bondprincipal. The Winning Bidder may not withdraw or modem its hid as a result of any post -hid adjustment. Any adjustment shall he
conclusive, and shall he binding upon the Winning Bidder.
Establishment of Issue Price
(a) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall
execute and deliver to the City at closing an "issue price" or similar certificate setting forth the
reasonably expected initial offering price to the Public or the sales price or prices of the Bonds,
together with the supporting pricing wires or equivalent communications, substantially in the form
attached hereto as Exhibit A to this Official Terms of Offering, with such modifications as may be
appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Ahlers &
Cooney, P.C. ("Bond Counsel"). All actions to be taken by the City under this Official Terms of
Offering to establish the issue price of the Bonds may be taken on behalf of the City by the City's
municipal advisor and any notice or report to be provided to the City may be provided to Speer
Financial, Inc., Chicago, Illinois ("Speer").
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
(b) The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(1) (defining
"competitive sale" for purposes of establishing the issue price of the Bonds) will apply to the initial
sale of the Bonds (the "competitive sale requirements") because:
(i) the City shall disseminate this Official Terms of Offering to potential Underwriters
in a manner that is reasonably designed to reach potential Underwriters;
(ii) all bidders shall have an equal opportunity to bid;
(iii) the City may receive bids from at least three Underwriters of municipal bonds who
have established industry reputations for underwriting new issuances of municipal
bonds; and
(iv) the City anticipates awarding the sale of the Bonds to the bidder who submits a
firm offer to purchase the Bonds at the lowest true interest cost, as set forth in this
Official Terms of Offering.
Any bid submitted pursuant to this Official Terms of Offering shall be considered a firm offer for the purchase of
the Bonds, as specified in the bid.
(c) In the event that the competitive sale requirements are not satisfied, the City shall so advise the
winning bidder. The City will not require bidders to comply with the "hold -the -offering -price
rule" and therefore does not intend to use the initial offering price to the Public as of the Sale
Date of any maturity of the Bonds as the issue price of that maturity, though the winning
bidder may elect to apply the "hold the offering price rule" (as described below). Bids will
not be subject to cancellation in the event that the competitive sale requirements are not
satisfied. Unless a bidder intends to apply the "hold -the -offering -price rule" as described
below, bidders should prepare their bids on the assumption that all of the maturities of the
Bonds will be subject to the 10% test (as described below) in order to establish the issue price
of the Bonds. If the competitive sale requirements are not satisfied, the 10% test shall apply to
determine the issue price of each maturity of the Bonds unless the winning bidder shall request that
the "hold -the -offering -price rule" (as described below) shall apply. The winning bidder must notify
Speer of its intention to apply the "hold -the -offering -price rule" at or prior to the time the Bonds
are awarded.
(i) If the winning bidder does not request that the "hold -the -offering -price rule" apply
to determine the issue price of the Bonds, the following two paragraphs shall apply:
The City shall treat the first price at which 10% of a maturity of the Bonds (the
"10% test") is sold to the Public as the issue price of that maturity, applied on a
maturity -by -maturity basis. The winning bidder shall advise the City if any
maturity of the Bonds satisfies the 10% test as of the date and time of the award of
the Bonds.
Until the 10% test has been satisfied as to each maturity of the Bonds, the winning
bidder agrees to promptly report to the City the prices at which the unsold Bonds
of that maturity have been sold to the Public. That reporting obligation shall
continue, whether or not the closing date has occurred, until the 10% test has been
satisfied as to the Bonds of that maturity or until all Bonds of that maturity have
been sold to the Public. In addition, if the 10% test has not been satisfied with
respect to any maturity of the Bonds prior to closing, then the purchaser shall
provide the City with a representation as to the price of prices, as of the date of
closing, at which the purchaser reasonably expects to sell the remaining Bonds of
such maturity.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
(ii) If the winning bidder does request that the "hold -the -offering -price rule" apply to
determine the issue price of the Bonds, the following three paragraphs shall apply:
The City may determine to treat (i) pursuant to the 10% test, the first price at which
10% of a maturity of the Bonds is sold to the Public as the issue price of that
maturity and/or (ii) the initial offering price to the Public as of the Sale Date of any
maturity of the Bonds as the issue price of that maturity (the "hold -the -offering -
price rule"), in each case applied on a maturity -by -maturity basis. The winning
bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as
of the date and time of the award of the Bonds. The City shall promptly advise the
winning bidder, at or before the time of award of the Bonds, which maturities of
the Bonds shall be subject to the 10% test or shall be subject to the hold -the -
offering -price rule or both. Bids will not be subject to cancellation in the event that
the City determines to apply the hold -the -offering -price rule to any maturity of the
Bonds.
By submitting a bid, the winning bidder shall (i) confirm that the Underwriters
have offered or will offer the Bonds to the Public on or before the date of award at
the offering price or prices (the "initial offering price "), and (ii) agree, on behalf
of the Underwriters participating in the purchase of the Bonds, that the
Underwriters will neither offer nor sell unsold Bonds of any maturity to which the
hold -the -offering -price rule shall apply to any person at a price that is higher than
the initial offering price to the Public during the period starting on the Sale Date
and ending on the earlier of the following:
(1) the close of the fifth business day after the Sale Date; or
(2) the date on which the Underwriters have sold at least 10%
of that maturity of the Bonds to the Public at a price that
is no higher than the initial offering price to the Public.
The City acknowledges that, in making the representation set forth above, the
winning bidder will rely on (i) the agreement of each Underwriter to comply with
the hold -the -offering -price rule, as set forth in an agreement among Underwriters
and the related pricing wires, (ii) in the event a selling group has been created in
connection with the initial sale of the Bonds to the Public, the agreement of each
dealer who is a member of the selling group to comply with the hold -the -offering -
price rule, as set forth in a selling group agreement and the related pricing wires,
and (iii) in the event that an Underwriter is a party to a retail distribution agreement
that was employed in connection with the initial sale of the Bonds to the Public,
the agreement of each broker -dealer that is a party to such agreement to comply
with the hold -the -offering -price rule, as set forth in the retail distribution
agreement and the related pricing wires. The City further acknowledges that each
Underwriter shall be solely liable for its failure to comply with its agreement
regarding the hold -the -offering -price rule and that no Underwriter shall be liable
for the failure of any other Underwriter, or of any dealer who is a member of a
selling group, or of any broker -dealer that is a party to a retail distribution
agreement to comply with its corresponding agreement regarding the hold -the -
offering -price applicable to the Bonds.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
(d) By submitting a bid, each bidder confirms that: (i) any agreement among Underwriters, any selling
group agreement and each retail distribution agreement (to which the bidder is a party) relating to
the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will
contain language obligating each Underwriter, each dealer who is a member of the selling group,
and each broker -dealer that is a party to such retail distribution agreement, as applicable, to (a)
report the prices at which it sells to the Public the unsold Bonds of each maturity allotted to it until
it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of
that maturity or all Bonds of that maturity have been sold to the Public and (b) comply with the
hold -the -offering -price rule, if applicable, in each case if and for so long as directed by the winning
bidder and as set forth in the related pricing wires which shall be at least until the 10% test has been
satisfied as to the Bonds of that maturity or until the close of the fifth business day following the
date of the award, and (ii) any agreement among Underwriters relating to the initial sale of the
Bonds to the Public, together with the related pricing wires, contains or will contain language
obligating each Underwriter that is a party to a retail distribution agreement to be employed in
connection with the initial sale of the Bonds to the Public to require each broker -dealer that is a
party to such retail distribution agreement to (a) report the prices at which it sells to the Public the
unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such
Underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds
of that maturity have been sold to the Public and (b) comply with the hold -the -offering -price rule,
if applicable, in each case if and for so long as directed by the winning bidder or such Underwriter
and as set forth in the related pricing wires, which shall be at least until the 10% test has been
satisfied as to the Bonds of that maturity or until the close of the fifth business day following the
date of the award.
(e) Sales of any Bonds to any person that is a Related Party to an Underwriter shall not constitute sales
to the Public for purposes of this Official Terms of Offering. Further, for purposes of this Official
Terms of Offering:
(i) "Public" means any person other than an Underwriter or a Related Parry,
(ii) "Underwriter" means (A) any person that agrees pursuant to a written contract with
the City (or with the lead underwriter to form an underwriting syndicate) to
participate in the initial sale of the Bonds to the public including, specifically, the
purchaser, and (b) any person that agrees pursuant to a written contract directly or
indirectly with a person described in clause (A) to participate in the initial sale of
the Bonds to the Public (including a member of a selling group or a party to a retail
distribution agreement participating in the initial sale of the Bonds to the Public),
(iii) a purchaser of any of the Bonds is a "Related Party" to an Underwriter if the
Underwriter and the purchaser are subject, directly or indirectly, to (i) at least 50%
common ownership of the voting power or the total value of their stock, if both
entities are corporations (including direct ownership by one corporation of
another), (ii) more than 50% common ownership of their capital interests or profits
interests, if both entities are partnerships (including direct ownership by one
partnership of another), or (iii) more than 50% common ownership of the value of
the outstanding stock of the corporation or the capital interests or profit interests
of the partnership, as applicable, if one entity is a corporation and the other entity
is a partnership (including direct ownership of the applicable stock or interests by
one entity of the other), and
(iv) "Sale Date" means the date that the Bonds are awarded by the City to the winning
bidder.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Bond Details
The Bonds will be in fully registered form in the denominations of $5,000 and integral multiples thereof in the name
of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, to which principal and
interest payments on the Bonds will be paid. Individual purchases will be in book -entry form only. Interest on each Bond
shall be paid by check or draft of the Bond Registrar to the person in whose name such Bond is registered at the close of
business on the fifteenth day of the month next preceding an interest payment date on such bond. The principal of the Bonds
shall be payable in lawful money of the United States of America at the principal office maintained for the purpose by the
Bond Registrar in St. Paul, Minnesota. Semiannual interest is due June 1 and December 1 of each year, commencing
December 1, 2025 and is payable by U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the "Bond
Registrar"). The Bonds are dated the date of delivery (expected to be on or about June 3, 2025).
AMOUNTS* AND MATURITIES — JUNE 1
$2, 200,000 .....................2026 $1, 370,000 .....................2029 $1, 370,000 .................... 2033
1,375,000 .....................2027 1,370,000 .....................2030 1,370,000 .................... 2034
1,370,000 .....................2028 1,370,000 .....................2031 1,370,000 .................... 2035
1,370,000 .....................2032
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
The Bonds due June 1, 2026 - 2032, inclusive, are non -callable. The Bonds due June 1, 2033 - 2035, inclusive, are
callable in whole or in part and on any date on or after June 1, 2032, at a price of par and accrued interest. If less than all
the Bonds are called, they shall be redeemed in any order of maturity as determined by the City and within any maturity by
lot.
Method of Bidding Electronically
Notwithstanding the fact that the City permits receiving bids electronically using SpeerAuction, all bidders must
have a signed, but uncompleted, Official Bid Form delivered to Speer Financial, Inc., Suite 608, 531 Commercial Street,
Waterloo, Iowa, (319) 291-8628 facsimile, prior to the close of bidding to which a printout of the electronic bid will be
attached and delivered to the City.
If bidding electronically, all -or -none bids must be submitted via the internet address www.SpecrAuction.com. The
use of SpeerAuction shall be at the bidder's risk and expense and the City shall have no liability with respect thereto,
including (without limitation) liability with respect to incomplete, late arriving and non -arriving bids.
To bid via the SpeerAuction webpage, bidders must first visit the SpeerAuction webpage where, if they have not
previously registered with either SpeerAuction, Grant Street Group (the "Auction Administrator") or any other website
administered by the Auction Administrator, they may register and then request admission to bid on the Bonds. Bidders will
be notified prior to the scheduled bidding time of their eligibility to bid. Only registered broker -dealers and dealer banks
with DTC clearing arrangements will be eligible to bid electronically.
The "Rules" of the SpeerAuction bidding process may be viewed on the SpeerAuction webpage and are
incorporated herein by reference. Bidders must comply with the Rules of SpeerAuction in addition to the requirements of
the City's Official Terms of Offering. In the event the Rules of SpeerAuction and this Official Terms of Offering conflict,
this Official Terms of Offering shall be controlling.
All electronic bids must be submitted on the SpeerAuction webpage. Electronic bidders may change and submit
bids as many times as they choose during the sale period but may not delete a submitted bid. The last bid submitted by an
electronic bidder before the deadline for receipt of bids will be compared to all other final bids to determine the winning
bidder. During the bidding, no bidder will see any other bidder's bid nor the status of their bid relative to other bids (e.g.,
whether their bid is a leading bid). The electronic bidder bears all risk of transmission failure. Any questions regarding
bidding on the SpeerAuction website should be directed to Grant Street Group at (412) 391-5555 x 370.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Each bidder shall be solely responsible for making necessary arrangements to access SpeerAuction for purposes of
submitting its internet bid in a timely manner and in compliance with the requirements of the Terms of Offering. The City
is permitting bidders to use the services of the SpeerAuction solely as a communication mechanism to conduct the internet
bidding and the SpeerAuction is not an agent of the City. Provisions of the Terms of Offering and Official Bid Form shall
control in the event of conflict with information provided by the Internet Bid System.
Electronic Facsimile Bidding: Bids may be submitted via facsimile at (319) 291-8628 or (319) 341-4008.
Electronic facsimile bids will be sealed and treated as sealed bids. Neither the City nor its agents will assume liability for
the inability of the bidder to reach the above named fax numbers prior to the time of sale specified above. Transmissions
received after the deadline will be rejected. Bidders electing to submit bids via facsimile transmission bear full and complete
responsibility for the transmission of such bid. Neither the City nor its agents will assume responsibility for the inability of
the bidder to reach the above specified fax number prior to the time of sale. Time of receipt shall be the time recorded by
the person receiving the facsimile and shall be conclusive.
Bidding Parameters and Award of the Bonds
All interest rates must be in multiples of one -eighth or one one -hundredth of one percent (1/8 or 1/100 of 1%), and
not more than one rate for a single maturity shall be specified. The differential between the highest rate bid and the lowest
rate bid shall not exceed three percent (3%). All bids must be for all of the Bonds and must be for not less than $14,418,720.
Award of the Bonds: The Bonds will be awarded on the basis of true interest cost, determined in the following
manner. True interest cost shall be computed by determining the annual interest rate (compounded semi-annually) necessary
to discount the debt service payments on the Bonds from the payment dates thereof to the dated date and to the bid price.
For the purpose of calculating true interest cost, the Bonds shall be deemed to become due in the principal amounts and at
the times set forth in the table of maturities set forth above. In the event two or more qualifying bids produce the identical
lowest true interest cost, the winning bid shall be the bid that was submitted first in time on the SpeerAuction webpage or
if all such bids are not submitted electronically, the winning bid shall be determined by lot.
The Bonds will be awarded to the bidder complying with the terms of this Official Terms of Offering whose bid
produces the lowest true interest cost rate to the City as determined by the City's Registered Municipal Advisor, which
determination shall be conclusive and binding on all bidders; provided, that the City reserves the right to reject all bids or
any non -conforming bid and reserves the right to waive any informality in any bid. Electronic bidders should verify the
accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page
immediately after the bidding.
The premium or discount, if any, is subject to pro rata adjustment if the maturity amounts of the Bonds are
changed, maintaining, as close as possible, the same dollar amount of profit per $1,000 bond as bid.
The true interest cost of each electronic bid will be computed by SpeerAuction and reported on the Observation
Page of the SpeerAuction webpage immediately following the date and time for receipt of bids. These true interest costs
are subject to verification by the City's Municipal Advisor, will be posted for information purposes only and will not signify
an actual award of any bid or an official declaration of the winning bid. The City or its Municipal Advisor will notify the
bidder to whom the Bonds will be awarded, if and when such award is made.
The winning bidder will be required to make the standard filings and maintain the appropriate records routinely
required pursuant to MSRB Rules G-8, G-11 and G-36. The winning bidder will be required to pay the standard MSRB
charge for Bonds purchased. In addition, the winning bidder who is a member of the Securities Industry and Financial
Markets Association ("SIFMA") will be required to pay SIFMA's standard charge per Bond.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
Good Faith Deposit and Other Matters
The winning bidder is required to a wire transfer from a solvent bank or trust company to the City's good faith bank
the amount of TWO PERCENT OF PAR (the "Deposit") WITHIN TWO HOURS after the bid opening time as evidence
of the good faith of the bidder. Alternatively, a bidder may submit its Deposit upon or prior to the submission of its bid in
the form of a certified or cashier's check on, or a wire transfer from, a solvent bank or trust company for TWO PERCENT
OF PAR payable to the Treasurer of the City. The City reserves the right to award the Bonds to a winning bidder whose
wire transfer is initiated but not received within such two hour time period provided that such winning bidder's federal wire
reference number has been received. In the event the Deposit is not received as provided above, the City may award the
Bonds to the bidder submitting the next best bid provided such bidder agrees to such award.
If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions:
Amalgamated Bank of Chicago
Corporate Trust
30 North LaSalle Street
38' Floor
Chicago, IL 60602
ABA # 071003405
Credit To: 3281 Speer Bidding Escrow
RE: City of Iowa City, Johnson County, Iowa bid for
$14,535,000* General Obligation Bonds, Series 2025A
If the wire shall arrive in such account prior to the date and time of the sale of the Bonds. Contemporaneously with
such wire transfer, the prospective purchaser shall send an email to biddingescrow@aboc.com with the following
information: (1) indication that a wire transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it
applies, and (4) the return wire instructions if such prospective purchaser is not awarded the Bonds. The City and any
prospective purchaser who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc. ("Speer") shall
be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not
accepted, Speer shall, at its expense, promptly return the Deposit amount to the unsuccessful prospective purchaser; (ii) if
the bid is accepted, the Deposit shall be forwarded to the City, (iii) Speer shall bear all costs of maintaining the escrow
account and returning the funds to the prospective purchaser; (iv) Speer shall not be an insurer of the Deposit amount and
shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v)
income earned on the Deposit, if any, shall be retained by Speer.
The City covenants and agrees to enter into a written agreement, certificate or contract, constituting an undertaking
(the "Undertaking") to provide ongoing disclosure about the City for the benefit of the beneficial owners of the Bonds on
or before the date of delivery of the Bonds as required under Section (b)(5) of Rule 15c2-12 (the "Rule") adopted by the
Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking shall be as described
in the Official Statement, with such changes as may be agreed in writing by the Underwriter.
The Underwriter's obligation to purchase the Bonds shall be conditioned upon the City delivering the Undertaking
on or before the date of delivery of the Bonds.
The Bonds will be delivered to the successful purchaser against full payment in immediately available funds as
soon as they can be prepared and executed, which is expected to be on or about June 3, 2025. Should delivery be delayed
beyond sixty (60) days from the date of sale for any reason beyond the control of the City except failure of performance by
the purchaser, the City may cancel the award or the purchaser may withdraw the good faith deposit and thereafter the
purchaser's interest in and liability for the Bonds will cease.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,
principal amounts, and interest rates of the Bonds, and any other information required by law or deemed appropriate by the
City, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in the Rule.
By awarding the Bonds to any underwriter or underwriting syndicate, the City agrees that, no more than seven (7) business
days after the date of such award, it shall provide, without cost to the senior managing underwriter of the syndicate to which
the Bonds are awarded, up to 50 copies of the Final Official Statement to permit each "Participating Underwriter" (as that
term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the senior managing underwriter
of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final
Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid is accepted by the City it shall enter into a contractual relationship with all
Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the
Final Official Statement.
By submission of its bid, the senior managing underwriter of the successful purchaser agrees to supply all necessary
pricing information and any Participating Underwriter identification necessary to complete the Official Statement within 24
hours after award of the Bonds. Additional copies of the Final Official Statement may be obtained by Participating
Underwriters from the printer at cost.
The City will, at its expense, deliver the Bonds to the purchaser in New York, New York (or arrange for "FAST"
delivery) through the facilities of DTC and will pay for the bond attomey's opinion. At the time of closing, the City will
also furnish to the purchaser the following documents, each dated as of the date of delivery of the Bonds: (1) the legal
opinion of Ahlers & Cooney, P.C., Des Moines, Iowa, that the Bonds are lawful and enforceable obligations of the City in
accordance with their terms; (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income
taxes as and to the extent set forth in the Official Statement for the Bonds; and (3) a no litigation certificate by the City.
Purchaser consents to the receipt of electronic transcripts and acknowledges the City's intended use of electronically
executed documents. Iowa Code Chapter 554D establishes electronic signatures have the full weight and legal authority as
manual signatures.
The City has authorized the printing and distribution of an Official Statement containing pertinent information
relative to the City and the Bonds. Copies of such Official Statement or additional information may be obtained from Nicole
Davies, Finance Director, City of Iowa City, 410 E. Washington Street, Iowa City, Iowa 52240 or an electronic copy of this
Official Statement is available from the www.speerfinancial.com website under "Official Statement Sales/Competitive
Calendar" or from the Registered Municipal Advisor to the City, Speer Financial, Inc., 531 Commercial Street, Suite 608,
Waterloo, Iowa 50701 (telephone (319) 291-2077), and 230 West Monroe Street, Suite 2630, Chicago, Illinois 60606
(telephone (312) 346-3700).
/s/ NICOLE DAVIES
Finance Director
CITY OF IOWA CITY
Johnson County, Iowa
The remainder of this page was left blank intentionally.
City oflowa City, Johnson County, Iowa
$14,535, 000* General Obligation Bonds, Series 2025
EXHIBIT A
EXAMPLE ISSUE PRICE CERTIFICATE
USE FOR COMPETITIVE SALES — 3 BIDS RECEIVED
EXHIBIT A
$ General Obligation Bonds, Series 2025A of Iowa City, Iowa
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser"), hereby certifies as
set forth below with respect to the sale of the above -captioned obligations (the "Bonds").
Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the
Public by Purchaser are the prices listed in Schedule A (the "Expected Offering Prices"). The Expected
Offering Prices are the prices for the Maturities of the Bonds used by Purchaser in formulating its bid to
purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by Purchaser to
purchase the Bonds.
(b) Purchaser was not given the opportunity to review other bids prior to submitting its bid.
(c) The bid submitted by Purchaser constituted a firm offer to purchase the Bonds.
2. Defined Terms.
(a) Maturity means Bonds with the same credit and payment terms. Bonds with different
maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as
separate Maturities.
(b) Public means any person (including an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related
party" for purposes of this certificate generally means any two or more persons who have greater than 50
percent common ownership, directly or indirectly.
(c) Sale Date means the first day on which there is a binding contract in writing for the sale of
a Maturity of the Bonds. The Sale Date of the Bonds is May 6, 2025.
(d) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written
contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in
the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale
of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement
participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of
the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned
understands that the foregoing information will be relied upon by the Issuer and its agents with respect to
certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance
with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C. in connection with
rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax
purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax
advice that it may give to the Issuer from time to time relating to the Bonds.
[UNDERWRITER]
Name:
Dated: [ISSUE DATE]
SCHEDULE A
EXPECTED OFFERING PRICES
(Attached)
SCHEDULE B
COPY OF UNDERWRITER'S BID
(Attached)
USE FOR GENERAL RULE 10%- PUBLIC SALE
EXHIBIT A
$ General Obligation Bonds, Series 2025A of Iowa City, Iowa
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser"), on behalf of itself,
hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations
(the "Bonds").
1. Sale of the Bonds. As of the date of this certificate, for each Maturity of the Bonds, the
first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price
listed in Schedule A.
2. Defined Terms.
(a) Issuer means the City of Iowa City, Iowa, a municipal corporation in the State of Iowa.
(b) Maturity means Bonds with the same credit and payment terms. Bonds with different
maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as
separate Maturities.
(c) Public means any person (including an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related
party" for purposes of this certificate generally means any two or more persons who have greater than 50
percent common ownership, directly or indirectly.
(d) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written
contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in
the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale
of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement
participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of
the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned
understands that the foregoing information will be relied upon by the Issuer and its agents with respect to
certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance
with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C., as Bond Counsel, in
connection with rendering its opinion that the interest on the Bonds is excluded from gross income for
federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other
federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
[Signature Page Follows]
[UNDERWRITER]
Lo
Name:
Dated: [ISSUE DATE]
SCHEDULE A
SALE PRICES
(Attached)
[USE IF SOME MATURITIES SUBJECT TO HOLD THE PRICE, OTHERS 10% RULE]
EXHIBIT A
$ General Obligation Bonds, Series 2025A of Iowa City, Iowa
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser"), on behalf of itself,
hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations
(the "Bonds").
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity
of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public
is the respective price listed in Schedule A.
2. Initial Offering Price of the Hold -the -Offering -Price Maturities.
(a) Purchaser offered the Hold -the -Offering -Price Maturities to the Public for purchase at the
respective initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale
Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate
as Schedule B.
(b) As set forth in the Notice of Sale and bid award, Purchaser has agreed in writing that, (i)
for each Maturity of the Hold -the -Offering -Price Maturities, it would neither offer nor sell any of the Bonds
of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity
during the Holding Period for such Maturity (the "hold -the -offering -price rule"), and (ii) any selling group
agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail
distribution agreement shall contain the agreement of each broker -dealer who is a parry to the retail
distribution agreement, to comply with the hold -the -offering -price rule. Pursuant to such agreement, no
Underwriter (as defined below) has offered or sold any Maturity of the Hold -the -Offering -Price Maturities
at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the
Holding Period.
Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto
as the "General Rule Maturities."
(b) Hold -the -Offering -Price Maturities means those Maturities of the Bonds listed in Schedule
A hereto as the "Hold -the -Offering -Price Maturities."
(c) Holding Period means, with respect to a Hold -the -Offering -Price Maturity, the period
starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale
Date (March 13, 2025), or (ii) the date on which Purchaser has sold at least 10% of such Hold -the -Offering -
Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold -the -
Offering -Price Maturity.
(d) Issuer means the City of Iowa City, Iowa, a municipal corporation in the State of Iowa.
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different
maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as
separate maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related
party" for purposes of this certificate generally means any two or more persons who have greater than 50
percent common ownership, directly or indirectly.
(g) Sale Date means the first day on which there is a binding contract in writing for the sale of
a Maturity of the Bonds. The Sale Date of the Bonds is May 6, 2025.
(h) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written
contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in
the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale
of the Bonds to the Public (including a member of a selling group or a parry to a retail distribution agreement
participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148
of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The
undersigned understands that the foregoing information will be relied upon by the Issuer and its agents with
respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to
compliance with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C., Bond
Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross
income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and
other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
[UNDERWRITER]
LO
Name:
Dated: [ISSUE DATE]
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES AND
INITIAL OFFERING PRICES OF THE HOLD -THE -OFFERING -PRICE MATURITIES
(Attached)
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
4901-1043-7424-1\10714-151
Items to Include on Agenda
for the Council Meeting on April 15, 2025
City of Iowa City, Iowa
$14,535,000* (Dollar Amount Subject to Change) General Obligation Bonds, Series 2025A
Resolution directing the advertisement for sale and approving electronic bidding
procedures and Distribution of Preliminary Official Statement.
Notice Must Be Given Pursuant to Iowa Code
Chapter 21 and the Local Rules of the City.
April 15, 2025
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Council Chambers, at Emma J. Harvat Hall, 410 E. Washington St., Iowa City,
Iowa, at 6 : 00 P.M., on the above date. There were present Mayor
Teague , in the chair, and the following named Council Members:
Alter, Bergus, Moe, Harmsen, Salih, Teague, Weilein
Absent: None
Vacant: None
2
Council Member Moe introduced the following Resolution
entitled "Resolution Directing the Advertisement for Sale of $14,535,000* (Dollar Amount
Subject to Change) General Obligation Bonds, Series 2025A, and Approving Electronic Bidding
Procedures and Distribution of Preliminary Official Statement" and moved its adoption. Council
Member Alter seconded the Resolution to adopt. The roll was called and
the vote was,
AYES: Alter, Bergus, Harmsen, Moe, Salih, Teague, Weilein
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
Resolution No. 25-88
Resolution Directing the Advertisement for Sale of $14,535,000*
(Dollar Amount Subject to Change) General Obligation Bonds,
Series 2025A, and Approving Electronic Bidding Procedures and
Distribution of Preliminary Official Statement
Whereas, the Issuer is in need of funds to pay costs of the opening, widening, extending,
grading and drainage of the right-of-way of streets, highways, avenues, alleys, and public
grounds; the construction, reconstruction, and repairing of any street and streetscape
improvements, including the replacement or planting of trees in public areas, related utility work,
traffic control devices, lighting, trails, sidewalks, and the acquisition of real estate for such
purposes; the acquisition, construction, reconstruction, enlargement, improvement, and repair of
bridges, culverts, retaining walls, viaducts, underpasses, grade crossing separations, and
approaches thereto; the acquisition, construction and improvement of works and facilities useful
for the collection and disposal of surface waters and streams, and for the protection of property
situated within the corporate limits from floods or high waters, and for the protection of property
from the effects of flood waters; equipping the fire department; and the rehabilitation and
improvement of parks already owned, including facilities, equipment and improvements
commonly found in city parks, essential corporate purpose(s), and it is deemed necessary and
advisable that General Obligation Bonds, to the amount of not to exceed $11,300,000 be
authorized for said purpose(s); and
Whereas, pursuant to notice published as required by Section 384.25 of the Code of Iowa,
this Council has held a public meeting and hearing upon the proposal to institute proceedings for
the issuance of the Bonds, and the Council is therefore now authorized to proceed with the
issuance of said Bonds for such purpose(s); and
Whereas, the City is in need of funds to pay costs of the acquisition, reconstruction,
redevelopment, improvement and equipping of a swimming pool, park and related facilities,
general corporate purpose(s), and it is deemed necessary and advisable that General Obligation
Bonds, to the amount of not to exceed $1,335,100 be authorized for said purpose(s); and
Whereas, the Issuer has a population in excess of 75,000, and the Bonds for these
purposes do not exceed $1,335,100; and
Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa,
the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
Whereas, the City is in need of funds to pay costs of the acquisition, construction,
improvement and equipping of recreational grounds and buildings, parks and the acquisition of
real estate therefor, general corporate purpose(s), and it is deemed necessary and advisable that
General Obligation Bonds, to the amount of not to exceed $1,000,000 be authorized for said
purpose(s); and
Whereas, the Issuer has a population in excess of 75,000, and the Bonds for these
purposes do not exceed $1,335,100; and
Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa,
the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
Whereas, the City is in need of funds to pay costs of the acquisition, reconstruction,
improvement and equipping of fire stations, pools, recreation centers, community centers and
City Hall, general corporate purpose(s), and it is deemed necessary and advisable that General
Obligation Bonds, to the amount of not to exceed $900,000 be authorized for said purpose(s);
and
Whereas, the Issuer has a population in excess of 75,000, and the Bonds for these
purposes do not exceed $1,335,100; and
Whereas, pursuant to notice published as required by Section 384.26 of the Code of Iowa,
the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
Whereas, pursuant to Section 384.28 of the Code of Iowa, it is hereby found and
determined that the various general obligation bonds authorized as hereinabove described shall
be combined for the purpose of issuance in a single issue of $14,535,000* (Dollar Amount
Subject to Change) General Obligation Bonds as hereinafter set forth; and
Whereas, in conjunction with its Municipal Advisor, Speer Financial, Inc., and
Disclosure Counsel, the City has caused a Preliminary Official Statement to be prepared
outlining the details of the proposed sale of the Bonds; and
0
Whereas, the Council has received information from its Municipal Advisor evaluating
and recommending the procedure hereinafter described for electronic, facsimile and internet
bidding to maintain the integrity and security of the competitive bidding process and to facilitate
the delivery of bids by interested parties; and
Whereas, the Council deems it in the best interests of the City and the residents thereof to
receive bids to purchase such Bonds by means of both sealed and electronic internet
communication.
Now, Therefore, be it Resolved by the City Council of the City of Iowa City, State of
Iowa:
Section 1. That the receipt of electronic bids by facsimile machine and through the
SpeerAuction Competitive Bidding System described in the Notice of Sale and Official
Statement are hereby found and determined to provide reasonable security and to maintain the
integrity of the competitive bidding process, and to facilitate the delivery of bids by interested
parties in connection with the offering at public sale.
Section 2. That General Obligation Bonds, Series 2025A, of City of Iowa City, State of
Iowa, in the amount of $14,535,000* (Dollar Amount Subject to Change), to be issued as
referred to in the preamble of this Resolution, to be dated June 3, 2025, be offered for sale
pursuant to the published advertisement.
Section 3. That the preliminary Official Statement in the form presented to this meeting
be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of
the Securities and Exchange Commission, subject to such revisions, corrections or modifications
as the Mayor and City Clerk, upon the advice of bond counsel, disclosure counsel, and the City's
Municipal Advisor, shall determine to be appropriate, and is authorized to be distributed in
connection with the offering of the Bonds for sale.
Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least
once, the last one of which shall be not less than four clear days nor more than twenty days
before the date of the sale. Publication shall be made in the Iowa City Press -Citizen, a legal
newspaper, printed wholly in the English language, published within the county in which the
Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter
75 of the Code of Iowa, and shall state that this Council, on the 6`h day of May, 2025, at 6:00
P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were
previously received and opened by City Officials at 11:00 A.M. on said date. The notice shall be
in substantially the following form:
5
(To be published on April 24, 2025) (between April 16, 2025 and May 2, 2025)
Notice of Bond Sale
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Iowa City, State
of Iowa, hereafter described, must be received at the office of the Finance Director, City Hall,
410 E. Washington, Iowa City, Iowa 52440 (the "Issuer") before 11:00 A.M., on the 6a' day of
May, 2025. The bids will then be publicly opened and referred for action to the meeting of the
City Council in conformity with the Terms of Offering.
The Bonds: The Bonds to be offered are the following:
General Obligation Bonds, Series 2025A, in the amount of
$14,535,000*, to be dated June 3, 2025 (the "Bonds"). Bids to be
received before 11:00 A.M. C.D.T.
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Bidding: Open bids will not be received. Bids will be received in any of the
following methods:
Sealed Bidding: Sealed bids may be submitted and will be received at the office
of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440.
Electronic Internet Bidding: Electronic internet bids will be received at the office
of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440.
The bids must be submitted through the SPEERAUCTION competitive bidding
system.
Electronic Facsimile Bidding: Electronic facsimile bids will be received by the
City's Municipal Advisor, Speer Financial, Inc., Waterloo, Iowa (facsimile
number: (319) 291-8628 or (319) 341-4008). Electronic facsimile bids will be
treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed
bids will be announced. Sealed bids will then be publicly opened and announced. Finally,
electronic internet bids will be accessed and announced.
Sale and Award: The sale and award of the Bonds will be held in the Council Chambers,
at Emma J. Harvat Hall, 410 E. Washington St., Iowa City, Iowa at a meeting of the City Council
on the above date at 6:00 P.M.
Official Statement: The Issuer has issued an Official Statement of information pertaining
to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid
Form, which is incorporated by reference as a part of this notice. The Official Statement may be
obtained by request addressed to the City Clerk, City Hall, 410 E. Washington, Iowa City, Iowa
CZ
52440 or the Issuer's Municipal Advisor, Speer Financial, Inc., 531 Commercial Street,
Waterloo, Iowa, 50703, Telephone: (319) 291-2077.
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accordance with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C.,
Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together
with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except
to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not
examine or review or express any opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Iowa City, State of Iowa.
City Clerk, City of Iowa City, State of Iowa
(End of Notice)
7
Passed and Approved this 15`h day of April, 2025.
M
r
Attest:
City berk
Certificate
State of Iowa )
) SS
County of Johnson )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
Witness my hand and the seal of the Council hereto affixed this 15 th day of
April , 2025.
CityerCl kerCl k City of Iowa City, State of Iowa
(Seal)
Certificate
State of Iowa )
) SS
County of Johnson )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Iowa City, in the County of
Johnson, State of Iowa, and that as such Clerk and by full authority from the Council of the City,
I have caused a
Notice of Bond Sale
(514,535,000* (Dollar Amount Subject to Change) General Obligation Bonds,
Series 2025A)
of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures
a correct and complete copy, to be published as required by law in the Iowa City Press -Citizen, a
legal newspaper published at least once weekly, printed wholly in the English language,
published regularly and mailed through the post office of current entry for more than two years
and which has had for more than two years a bona fide paid circulation recognized by the postal
laws of the United States, and has a general circulation in the City, and that the Notice was
published in all of the issues thereof published and circulated on the following date:
2025.
Witness my official signature this+� day of ( 2025.
City Clerk, City of Iowa City, State of Iowa
(Seal)
4917-0047-4927-1\10714-151
J1,LLocaliQ
Iowa
GANNETT
AFFIDAVIT OF PUBLICATION
CITY OF IOWA CITY
City Clerk's Office
City Of Iowa City
410 E Washington ST
Iowa City IA 52240-1825
STATE OF WISCONSIN, COUNTY OF BROWN
The Iowa City Press Citizen, a newspaper printed and published in
the city of Iowa, Johnson County, State of Iowa, and personal
knowledge of the facts herein state and that the notice hereto
annexed was Published in said newspapers in the issue:
04/24/2025
and that the fees charged are legal.
Sworn to and subscribed before on 04/24/2025
V �
My commission expires
Publication Cost: $76.60
Tax Amount: $0.00
Payment Cost: $76.60
Order No: 11235314 # of Copies:
Customer No: 1249729 1
PO #:
-n IIS l4 NTo,r A' TN- TV01CI:t
Please do not use this form for payment remittance.
NANCY HEYRMAN
Notary Public
State of Wisconsin
PO Box 631851 Cincinnati, OH 4S263-1851
once of Bond sale
Itl Ploce of Sealetl Bids:
,he sole O, Bonds Of the
owa City State of IOWO,
descrlbetl, usl be
o, tChe Off ity Hall, 1tTj, pnonE
on, Iowa city, Iowa 51Mp
uer') before 11:W A.M.. on
lov of f bY�Ivp�openeO and
'lar n<hg1 to
the meetlnp. of
Council in conformity w11h
1sof OffV'no
'. The Bonds to be offered
011owinp:_
Obligation Bonds, series
the amount of $14R5.11OV,
Gated, Jute! 7. 1b25 (the
1. elds to be eceived
:W A.M. C.D.T.
to arincipol adjustment
1 to attic wl Terms of
o, BlOdinp: Open bw45 Will
receovetl. Btds II b
i nv of the follow,"
All bids sholl be
Ih and the sale
rdonce with the
as set forth in the
d: The riGht. is
ct any or a.I bids,
XIfrey1(^Orllies os
e besl terests of
city coancll of the
of lIowa Ci�State
Page 1 of 1
Item Number: 7.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution setting a public hearing on May 6, 2025 on project manual and estimate of cost for
the construction of the Rundell Street Pump Station Vault Modifications Project, directing City
Clerk to publish notice of said hearing, and directing the City Engineer to place said project
manual on file for public inspection.
Prepared By: Ben Clark — Senior Engineer
Reviewed By: Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $411,000 available in the Rundell Street Pump Station
Vault Modifications account #M3634.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the Rundell Street Pump Station Vault
Modifications Project. This project generally includes repairs to an existing storm water pump
station.
Background / Analysis:
The Rundell Street Pumping Station was constructed in 1983 and some components have
reached the end of their useful life expectancy.
The pumping station is comprised of one wet well that contains two submersible pumps and
a separate wet well that contains two axial flow propeller pumps. The two wet wells are
connected via a 54-inch gravity sewer.
The submersible pumping station work consists of the replacement of two submersible
pumps and appurtenances, check valves, isolation valves, and electrical equipment;
replacement of the existing 14-foot by 14-foot concrete top slab and access doors;
preparation and painting of the existing ductile iron piping to remain; and rehabilitation of the
existing trash screen anchors and supports.
The propeller pumping station work consists of installation of concrete curbing and an
equipment pad for the new City -provided control panel and replacement of the solenoids in
the oil reservoir enclosure.
Additionally, work includes accessibility improvements related to the vault lid and surrounding
sidewalk, replacement of curb ramps at all four corners of the Rundell Street and Center
Avenue intersection, installation of a utility meter cabinet, installation of a new equipment pad
to raise the existing transformer, and miscellaneous restoration.
Project Timeline:
Public Hearing / Approve Project Manual: May 6, 2025
Bid Letting Date: May 28, 2025
Contract Award Date: June 3, 2025
Construction Dates: June 2025 to December 2025
Prepared by: Ben Clark, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319)356-5436
Resolution No. 25-89
Resolution setting a public hearing on May 6, 2025 on project
manual and estimate of cost for the construction of the Rundell
Street Pump Station Vault Modifications Project, directing City
Clerk to publish notice of said hearing, and directing the City
Engineer to place said project manual on file for public
inspection.
Whereas, funds for this project are available in the Rundell Street Pump Station Vault
Modifications account #M3634.
Now, therefore, be it resolved by the Council of the City of Iowa City, Iowa, that:
A public hearing on the project manual and estimate of cost for the construction of the
above -mentioned project is to be held on the 6th day of May, 2025, at 6:00 p.m. in the
Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said meeting is cancelled, at the next
meeting of the City Council thereafter as posted by the City Clerk.
2. The City Clerk is hereby authorized and directed to publish notice of the public hearing for
the above -named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty (20) days before
said hearing.
3. A copy of the project manual and estimate of cost for the construction of the above -named
project is hereby ordered placed on file by the City Engineer in the office of the City Clerk
for public inspection.
Passed and approved this 15th day of April 2025
Mayor
Approved by
�t G
Attest:
City'Clerk City Attorne s Office
(Liz Craig - 04/10/2025)
It was moved by Moe and seconded by Alter the Resolution be
adopted, and upon roll call there were:
Ayes
X
X
X
X
X
X
Nays:
Absent:
Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
Item Number: 10.a.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution approving project manual and estimate of cost for the construction of the FY2025
Pavement Rehabilitation Project, establishing amount of bid security to accompany each bid,
directing City Clerk to post notice to bidders, and fixing time and place for receipt of bids.
Prepared By: Justin Harland — Senior Engineer
Reviewed By: Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $2,458,000 available in the Pavement Rehabilitation
account, #S3824.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the FY2025 Pavement Rehabilitation
Project, which is a recurring maintenance project that concentrates on asphalt resurfacing
and chip sealing streets throughout Iowa City. This project includes resurfacing streets with
3" HMA pavement, full depth HMA and PCC patching, sanitary sewer manhole replacement,
storm intake top replacement, PCC sidewalk and ADA curb ramp improvements.
Background / Analysis:
The FY2025 Pavement Rehabilitation Project includes work on the following streets:
Asahalt Resurfacina:
• S Dubuque Street
• Glendale Road
• Ridgeway Drive
• Hawthorne Street
• N Lowell Street
• S Lowell Street
Chip Seal:
• Nursery Lane
• Taft Avenue
• Grove Street
• Hutchinson Avenue
• Dodge Street Court
• Conklin Lane
Project Timeline:
Public Hearing and Approve Project Manual: April 15, 2025
Bid Letting: May 7, 2025
Contract Award: May 20, 2025
Construction: June — August 2025
Prepared by: Justin Harland, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5154
Resolution No. 25-90
Resolution approving project manual and estimate of cost for the
construction of the FY2025 Pavement Rehabilitation Project,
establishing amount of bid security to accompany each bid,
directing City Clerk to post notice to bidders, and fixing time and
place for receipt of bids.
Whereas, notice of public hearing on the project manual and estimate of cost for the above -
named project was published as required by law, and the hearing thereon held; and
Whereas, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the Annual Pavement Rehablitation account #
S3824.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The project manual and estimate of cost for the above -named project are hereby
approved.
2. The amount of bid security to accompany each bid for the construction of the above -
named project shall be in the amount of 10% (ten percent) of bid payable to City of Iowa
City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builders of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above -named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 7th day of May,
2025. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 6:00 p.m. on the 2011 day of May, 2025, or at a special meeting called for that
purpose.
Passed and approved this 15th day of April , 20 25
Attest:
City derk `
Mayor
Approved by /
G
City Attorne s Office
(Liz Craig - 04/10/2025)
Resolution No. 25-90
Page 2
It was moved by Moe and seconded by
adopted, and upon roll call there were:
Harmsen the Resolution be
Ayes:
Nays: Absent:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein
Item Number: 10.b.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution approving project manual and estimate of cost for the construction of the Iowa
River Trail Bridge Replacement Project, establishing amount of bid security to accompany
each bid, directing City Clerk to post notice to bidders, and fixing time and place for receipt of
bids.
Prepared By: Justin Harland — Senior Engineer
Reviewed By: Jason Havel — City Engineer
Ron Knoche — Public Works Director
Geoff Fruin — City Manager
Fiscal Impact: $459,000 available in the Iowa River Trail Bridge
replacement account, #R4423.
Staff Recommendation: Approval
Attachments: Resolution
Executive Summary:
This agenda item begins the bidding process for the Iowa River Trail Bridge Replacement
Project. This project generally includes the removal of an existing Iowa River Trail bridge and
replacement with a retaining wall, grading, and other associated work, repairs to an existing
pedestrian bridge under the Iowa Interstate Railroad, and additional trail replacement on the
east side of 526 and 510 S. Riverside Drive.
Background / Analysis:
The Iowa River Trail bridge located to the east of the Riverside Drive and Myrtle Avenue
intersection, behind Dairy Queen and Kelly's Auto, has reached the end of its service life.
The trail bridge will be replaced with an engineered retaining wall, which will provide the
same trail route for users while having a reduced life cycle cost compared to the trail bridge.
The retaining wall design has been hydraulically modeled and meets the no -rise condition
necessary for construction.
Project Timeline:
Hold Public Hearing and Approve Project Manual: April 15, 2025
Bid Letting: April 30, 2025
Contract Award: May 6, 2025
Construction: May — September 2025
Prepared by: Justin Harland, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5154
Resolution No. 25-91
Resolution approving project manual and estimate of cost for the
construction of the Iowa River Trail Bridge Replacement Project,
establishing amount of bid security to accompany each bid,
directing City Clerk to post notice to bidders, and fixing time and
place for receipt of bids.
Whereas, notice of public hearing on the project manual and estimate of cost for the above -
named project was published as required by law, and the hearing thereon held; and
Whereas, the City Engineer or designee intends to post notice of the project on the website
owned and maintained by the City of Iowa City; and
Whereas, funds for this project are available in the Iowa River Trail Bridge Replacement account #
R4423.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The project manual and estimate of cost for the above -named project are hereby
approved.
2. The amount of bid security to accompany each bid for the construction of the above -
named project shall be in the amount of 10% (ten percent) of bid payable to City of Iowa
City, Iowa.
3. The City Clerk is hereby authorized and directed to post notice as required in Section 26.3,
not less than 13 days and not more than 45 days before the date of the bid letting, which
may be satisfied by timely posting notice on the Construction Update Network, operated
by the Master Builders of Iowa, and the Iowa League of Cities website.
4. Sealed bids for the above -named project are to be received by the City of Iowa City, Iowa,
at the Office of the City Clerk, at the City Hall, before 3:00 p.m. on the 30th day of April,
2025. At that time, the bids will be opened by the City Engineer or his designee, and
thereupon referred to the City Council of the City of Iowa City, Iowa, for action upon said
bids at its next regular meeting, to be held at the Emma J. Harvat Hall, City Hall, Iowa City,
Iowa, at 6:00 p.m. on the 6th day of May, 2025, or at a special meeting called for that
purpose.
Passed and approved this 15th day of April 2025
Ma
Approved by
Attest:
City Jerk City Attorne ' Office
(Liz Craig - 04/10/2025)
Resolution No. 25-91
Page 2
It was moved by Moe
adopted, and upon roll call there were:
and seconded by
Nays:
Alter
Absent:
Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
the Resolution be
Item Number: 10.c.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution authorizing the filing of the Consolidated Transit Funding Application for Iowa City
Transit with the Iowa Department of Transportation for FY2026 State Transit Assistance and
Federal Transit Administration Funding.
Prepared By: Darian L. Nagle-Gamm; Transportation Services Director
Reviewed By: Geoff Fruin, City Manager
Jennifer Schwickerath, Assistant City Attorney
Fiscal Impact: Permits application for State and Federal transit operating
and capital funds which may require matching funds.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Executive Summary:
The consolidated transit funding application is an annual application filed with Iowa
Department of Transportation (DOT) listing capital and operating expenses for which the City
seeks funding from the Iowa DOT and the Federal Transit Administration (FTA). The projects
contained in the application have been programmed by Iowa City Transit for FTA Section
5307, 5310 and/or 5339 funds in FY2026.
The projects will be included in the FY2026 Iowa DOT consolidated transit funding
application that the Metropolitan Planning Organization of Johnson County (MPOJC) is
completing and in the FY2026-2029 MPOJC Transportation Improvement Program (TIP).
Iowa City Transit may not seek funding for all of the projects; however, each project needs to
be listed in order to be eligible for funding. Iowa City Transit is requesting approximately $3.5
million in operating funds and approximately $36 million in capital funds. The total amount of
funds being requested in the funding application is approximately $40.3 million dollars.
Background / Analysis:
Due to our application for and potential receipt of federal grant funds, we are required to hold
a public hearing so that the public has an opportunity to comment on the funding request.
The specific allocations for the funds being applied for are detailed below:
• State Transit Assistance Program: approximately $810,761 -- These are formula
funds for operations awarded to the Metropolitan Planning Organization (MPO) and
then distributed between Iowa City Transit, Coralville Transit and the University of Iowa
CAMBUS.
Federal operating assistance for transit (5307): approximately $3,200,000 -- These
are funds awarded from FTA to provide operational assistance to the transit agency.
From federal funds for transit in non -urbanized areas and/or for transit serving
primarily elderly persons and persons with disabilities (5310): $257,019 -- These
funds are awarded to Iowa City and committed to paratransit services that are
contracted through a 28E Agreement with Johnson County.
State-wide federal capital assistance for transit (5339): $36,031,853 (Prior
documents stated this number was $43,671,073, which was a miscalculation.) -- These
funds include all of the capital projects that Iowa City Transit wishes to see funded. This
sum includes replacement and relocation of the transit facility, bus replacements and
bus shelters. A local match of 15%-25% is commonly required for the award of these
funds.
Prepared by: Hannah Neel, Assoc. Transp. Planner, 410 E. Washington St., Iowa City, IA 52240 319-356-5235
Resolution No. 25-92
Resolution authorizing the filing of the Consolidated Transit
Funding Application for Iowa City Transit with the Iowa
Department of Transportation for FY2026 State Transit
Assistance and Federal Transit Administration Funding
Whereas, the City of Iowa City, Iowa has undertaken to provide its residents with a public
transportation system; and
Whereas, the Iowa Department of Transportation offers financial assistance to local governmental
units for their public transportation systems and projects, which includes federal financial assistance
from the Federal Transit Administration; and
Whereas, the grant or cooperative agreement for federal financial assistance will impose certain
obligations upon the City of Iowa City, and may require the City of Iowa City to provide the local
share of the project cost; and
Whereas, the City of Iowa City has or will provide all annual certifications and assurances to the
Federal Transit Administration required for the project.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
We, hereby, authorize the Metropolitan Planning Organization of Johnson County Associate
Transportation Planner, on behalf of the City of Iowa City, to apply for financial assistance as noted
below and to execute related contract(s) with the Iowa Department of Transportation and to execute
grant and cooperative agreements with the Federal Transit Administration. The City of Iowa City is
the designated recipient of Urbanized Area Formula Program assistance.
From the State Transit Assistance (STA) Program:
4.19051097 % (approximately $810,761) of Formula Funds
From federal operating assistance for transit (5307):
$3,200,000;
From federal funds for transit in non -urbanized areas and/or for transit serving primarily
elderly persons and person with disabilities (5307):
$257,019;
From state-wide and federal capital assistance for transit:
$36,031,853;
We, hereby, authorize the Metropolitan Planning Organization of Johnson County Associate
Transportation Planner, on behalf of the City of Iowa City, to execute and file with its applications
the annual certifications and assurances and other documents the Federal Transportation
Administration requires before awarding a federal assistance grant or cooperative agreement.
Resolution No. 25-92
Page 2
We understand acceptance of federal transit assistance involves an agreement to comply with
certain labor protection provisions.
We certify that the City of Iowa City has sufficient non-federal funds to provide required local match
for capital projects and at time of delivery will have the funds to operate and maintain vehicles and
equipment purchased under this project.
We request the State Transit Assistance formula funding be advanced monthly as allowed by law,
to improve transit system cash flow.
Passed and approved this 15th day of April, 2025.
ATTEST: J' :L.L_1 ( IJ`\may cLiC
City Clerk
It was moved by Bergus
adopted, and upon roll call there were:
Ayes:
x
I
M
and seconded by
Nays:
Approved by
L
City Attorneo Office
(Jennifer Schwickerath - 04/10/2025)
salih the Resolution be
Absent:
Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
Item Number: 10.d.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
A resolution amending the current budget for fiscal year ending June 30, 2025.
Prepared By: Nicole Davies, Finance Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: See attached resolution.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Notice of Public Hearing Amended FY25 Budget
Resolution
Executive Summary:
On April 15, 2025, two public hearings are being scheduled: one hearing will be held to take
public input on the proposed amendment of the fiscal year 2025 (FY2025) budget, and one
hearing will be held to take public input on the proposed fiscal year 2026 (FY2026) budget.
Following the first public hearing, a resolution to amend the FY2025 Operating Budget will be
considered. Following the second public hearing, a resolution to adopt the FY2026 Operating
Budget and a resolution to approve the FY2025 - 2027 Financial Plan and 2025 - 2029
Capital Improvement Plan document will be considered. The FY2026 adopted budget must
be certified by the Johnson County Auditor's office by April 30, 2025.
Background / Analysis:
The FY2025 - 2027 Financial Plan and 2025 - 2029 Capital Improvement Plan document was
made available to City Council and the general public in January 2025. This document
included the proposed FY2025 amended budget and the proposed FY2026 budget. This
document detailed the proposed and amended budgets as submitted by the City Manager
following an extensive budget process.
The City Council held public work sessions in January and February 2025 to review and
discuss the FY2025 - 2027 Financial Plan and 2025 - 2029 Capital Improvement Plan
document. During these budget work sessions, the City Manager and the department
directors presented their budget proposals and responded to questions from the City Council.
The City Council also clarified and refined their budget priorities during these work sessions.
The Resolutions to Amend the FY2025 Budget and to Adopt the FY2026 Budget and related
schedules represent the programs and details that were included in the FY2025 - 2027
Financial Plan and 2025 - 2029 Capital Improvement Plan document. The Resolutions and
related schedules also include any subsequent changes as directed by the City Council as
well as corrections and adjustments identified by City staff. The related schedules for the
FY2025 Amended Budget and the FY2026 Budget will be made available to the public on
April 1, 2025 and the Notices of Public Hearing for both will be published on April 3, 2025, in
accordance with state law to allow for public input.
Fiscal Year 2025 Revised Budget
The FY2025 budget amendment presented for City Council approval is the second budget
amendment of FY2025. This amendment incorporates all of the programs, changes, and
updates presented in the financial plan and capital improvement plan document that was
distributed to the City Council and the general public on January 8, 2025.
The State of Iowa allows cities to amend the annual operating budget for supplemental
appropriation authority. These changes may include new or revised revenue and
expenditure projections, transfers between funds, and capital improvement plan changes.
Increased expenditures must utilize available fund balance or additional revenue sources, as
the State does not allow amendments to increase property taxes. According to the City's
financial policies, amendments to operating budgets will be made only in the following
situations:
• emergency situations
• transfer from contingency
• expenditures with offsetting revenues or fund balance
• carry-over of prior year budget authority for expenses that had not been paid as of the
end of the fiscal year.
Since the distribution of the plan document, one correction was made by City staff to the
amended FY2025 budget. The correction was a transfer in of $100,000 to the Capital
Projects Fund and a transfer out of $100,000 from the Road Use Tax Fund for funding that
was missed in the initial draft.
The proposed budget amendment to the City's FY2025 budget does not increase property
taxes or change the property tax levy rate and expenditures are funded from increased
revenues or available fund balance.
NOTICE OF PUBLIC HEARING -AMENDMENT OF CURRENT BUDGET
City of IOWA CITY
Fiscal Year July 1, 2024 - June 30, 2025
The City of IOWA CITY will conduct a public hearing for the purpose of amending the current budget for fiscal year ending June 30, 2025
Meeting Date/Time: 4/15/2025 06:00 PM I Contact: Kellie Grace Phone: (319) 356-5041
Meeting Location: 410 E. Washington St., Emma Harvat Hall
There will be no increase in taxes. Any residents or taxpayers will be heard for or against the proposed amendment at the time and place specified above. A
detailed statement of: additional receipts, cash balances on hand at the close of the preceding fiscal year, and proposed disbursements, both past and
anticipated, will be available at the hearing. Budget amendments are subject to protest. If protest petition requirements are met, the State Appeal Board will
hold a local hearing. For more information, consult https://dom.iowa.gov/local-gov-appeals.
REVENUES & OTHER FINANCING SOURCES
Total Budget
as Certified
or Last Amended
Current
Amendment
Total Budget After
Current Amendment
Taxes Levied on Property
1
68,821,450
0
68,821,450
Less: Uncollected Delinquent Taxes - Levy Year
2
0
0
0
Net Current Property Tax
3
68,821,450
0
68,821,450
Delinquent Property Tax Revenue
4
0
0
0
TIF Revenues
5
4,388,100
0
4,388,100
Other City Taxes
6
3,576,298
2
3,576,300
Licenses & Permits
7
2,122,880
0
2,122,880
Use of Money & Property
8
3,171,385
0
3,171,385
Intergovernmental
9
75,672,982
-18,461,678
57,211,304
Charges for Service
10
56,579,585
-2,103,848
54,475,737
Special Assessments
11
2,000
0
2,000
Miscellaneous
12
12,023,211
-6,258,450
5,764,761
Other Financing Sources
13
49,035,590
886,885
49,922,475
Transfers In
14
64,934,610
479,700
65,414,310
Total Revenues & Other Sources
15
340,328,091
-25,457,389
314,870,702
EXPENDITURES & OTHER FINANCING USES
Public Safety
16
32,276,392
4,799
32,281,191
Public Works
17
13,184,600
68,600
13,253,200
Health and Social Services
18
687,576
0
687,576
Culture and Recreation
19
17,726,460
25,100
17,751,560
Community and Economic Development
20
25,807,149
-28,049
25,779,100
General Government
21
14,396,678
119,999
14,516,677
Debt Service
22
13,787,740
0
13,787,740
Capital Projects
23
79,353,654
-5,347,885
74,005,769
Total Government Activities Expenditures
24
197,220,249
-5,157,436
192,062,813
Business Type/Enterprise
25
163,228,681
-18,146,828
145,081,853
Total Gov Activities & Business Expenditures
261
360,448,930
-23,304,264
337,144,666
Transfers Out
27
64,934,610
479,700
65,414,310
Total Expenditures/Transfers Out
28
425,383,540
-22,824,564
402,558,976
Excess Revenues & Other Sources Over
(Under) Expenditures/Transfers Out
29
-85,055,449
-2,632,825
-87,688,274
Beginning Fund Balance July 1, 2024
30
158,684,272
80,772,396
239,456,668
Ending Fund Balance June 30, 2025
31
73,628,823
78,139,571
151,768,394
Explanation of Changes: Amendments include the review and modification of the 2025 CIP plan and various other smaller amendments. Additional detail is
on file from the Iowa City Finance Department.
03/19/2025 01:01 PM Paae 1 of 1
CITY BUDGET AMENDMENT AND CERTIFICATION RESOLUTION - FY 2025 - AMENDMENT # 2
Tc the Auditor of JOHNSON County; Iowa.
The Illy Council oIOWA CITY in said Ccunty Ccunties met on 04"!5/2025 D6:C0 PM, at the place and hour set !n the * of ce. a copy of which accompanies
this ceRi'icate and is cert!fled as to publication. Upon taking up he proposed amendment, it was-.onsidered and taxpayers were heard For and against the
amendment
The Councii after hearing all taxpayers :Wishing to be heard and considering the statements made by them, gave final consideration to the proposed
amendment(; he budget and modincalions proposed at the hearing; if any. Thereupon the following resolution was ,reduced.
RESOLUTION No, 25-93
A RESOLUTION AMENDING THE CURRENT BUDGET FOR FISCAL YEAR ENDING JUNE 2025
(AS LAST CERTIFIED OR AMENDED ON 09/17/2024)
Be it Resolved by the Council of City of IOWA CITY
Section 1. Following notice publishediposted 04/03/2025 and the public hearing held 04/15/2025 o6:00 PM the current budge, (as previously amended` is
amended as set out herein, and in the detail oy fund type and activity that supports this resolution which was considered a; the hearing:
REVENUES & OTHER FINANCING SOURCES
Total Budget
as Certified
or Last Amended
Current
Amendment
Total Budget After
Current Amendment
Taxes Levied on Propery
1
68,821,450
0
68;821,450
Less: Uncollected Delinquent Taxes - Levv "ear
2
0
0
0
Net Current Property Tax
3
68,821,450
0
68.821.450
Delinquent Property Tax Revenue
4
0
0
0
TIF Revenues
5
4,388,100
0
4,388,100
Other City ?axes
6
3,576,298
2
3,576,300
Licenses & Permits
7
2,122,380
0
2 122,880
Use of Mone • & Propertv
3
3,171.385
0
3;171,385
intergovernmental
9
5 672.982
-18.461.678
57.211,304
Char es for Service
56,579,585
-) 103,848
54:475,73?
Soeciai Assessments
2,000
0
2,000
Miscellaneous
' "'
12.023,21
-6,258.450
764 761
Other Financing Sources
13
49,035;590
886.885
49,922,475
'ransfers in
td
64,934.610
479:700
65.414.31C
Total Revenues & Other Sources
1
340,328,C91
-25,457.389
314;870,702
EXPENDITURES & OTHER FINANCING USES
Public Safety
161
32,276;392
4,799
32.281.191
public Aiorks
1. 7
13 ' 84 60[
68.600
13.253 200
-lealth and Social Services
18
687,576
0
687 576
Culture and Recreation
19
' 726,460
25,100
17,751,560
Community and Ecorom c Development
2-
25,8071149
-28,049
25,779,100
General Government
21
14,396.678
19.999
1,4.51n.677
Debt Service
22
3,787,740
0
13,787,740
Capitai Projects
'3
79,353,654
-5,347,885
74,005,769
Total Government Activities Expenditures
14197,220,249
-5,15T436
192,062;8.13
Business T:oe;'Enterprse
15
163,228,681
-18,146,828
145;081,853
Total Gov Activities & Business Expenditures
26
360,448,930
-23,3041264
337,144;666
I rarsfers Out
27
64,934.610
479,700
65.414.310
Total Ex endituresiTransfers Out
23
425,383,540
-22,824.564
402.558,976
Excess Revenues & Other Sources Over
(Under) Ex endituresrl ransfers Out
29
-85,055 449
-2.632,825
-87,688,774
Beginning Fund Balance July', 2C24
30
158,684.272
SC,772,396
9.456,668
Ending Fund Balance June 30, 2025
3+.
1 73,628,8'1
78,139.571
763,394
Explanation of Changes: Amendments include the reviedl and mocrficat,on of the 2025 C Y - various other smaller amendirner detail is
or file frorr the Iowa City Finance Department,
City ClerkiAdministrator Signature of Certification
Adopted On
Xn A Ai P
Mayor Signature aflatification
04'09. L0:'5 i;8:54 AM uace ' o
Resolution No. 25-93
Page No. 2
It was moved by Moe , and seconded by Alter that the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
X
Weilein
Item Number: 10.e.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution adopting the annual budget for the fiscal year ending June 30, 2026.
Prepared By:
Nicole Davies, Finance Director
Reviewed By:
Geoff Fruin, City Manager
Fiscal Impact:
See attached FY26 Budget
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Notice of Public Hearing FY26 Budget
FY26 Budget
Resolution
Executive Summary:
On April 15, 2025, two public hearings are being scheduled: one hearing will be held to take
public input on the proposed amendment of the fiscal year 2025 (FY2025) budget, and one
hearing will be held to take public input on the proposed fiscal year 2026 (FY2026) budget.
Following the first public hearing, a resolution to amend the FY2025 Operating Budget will be
considered. Following the second public hearing, a resolution to adopt the FY2026 Operating
Budget and a resolution to approve the FY2025 - 2027 Financial Plan and 2025 - 2029
Capital Improvement Plan document will be considered. The FY2026 adopted budget must
be certified by the Johnson County Auditor's office by April 30, 2025.
Background / Analysis:
The FY2025 - 2027 Financial Plan and 2025 - 2029 Capital Improvement Plan document was
made available to City Council and the general public in January 2025. This document
included the proposed FY2025 amended budget and the proposed FY2026 budget. This
document detailed the proposed and amended budgets as submitted by the City Manager
following an extensive budget process.
The City Council held public work sessions in January and February 2025 to review and
discuss the FY2025 - 2027 Financial Plan and 2025 - 2029 Capital Improvement Plan
document. During these budget work sessions, the City Manager and the department
directors presented their budget proposals and responded to questions from the City Council.
The City Council also clarified and refined their budget priorities during these work sessions.
The Resolutions to Amend the FY2025 Budget and to Adopt the FY2026 Budget and related
schedules represent the programs and details that were included in the FY2025 - 2027
Financial Plan and 2025 - 2029 Capital Improvement Plan document. The Resolutions and
related schedules also include any subsequent changes as directed by the City Council as
well as corrections and adjustments identified by City staff. The related schedules for the
FY2025 Amended Budget and the FY2026 Budget will be made available to the public on
April 1, 2025 and the Notices of Public Hearing for both will be published on April 3, 2025, in
accordance with state law to allow for public input.
Financial Impact:
Fiscal Year 2026 Proposed Budget
On January 8, 2025, the FY2025 - 2027 Financial Plan and 2025 - 2029 Capital Improvement
Plan document was delivered to the City Council and made available to the general public.
Since that time, changes and adjustments were made by City staff to the proposed FY2026
budget. The changes to the FY2026 budget are summarized as follows:
Decreased Property Tax Revenue by $76,500, which adjusted revenues, expenditures and
transfers for the following funds:
• General Fund - $43,200 reduction to revenues, $15,700 reduction to transfers in &
$3,600 reduction to transfers out
• Employee Benefits Fund - $14,400 reduction to revenues & $15,700 reduction to
transfers out
• Debt Service Fund - $17,400 reduction to revenues
• SSMID Fund - $1,500 reduction to revenues and expenditures
• Transit Fund - $3,600 reduction to transfers in
Increased Gas & Electric Excise Tax Revenue by $10,400, which adjusted revenue in the
following funds:
• General Fund - $10,000 increase to revenues
• Employee Benefits Fund - $1,300 reduction to revenues
• Debt Service Fund - $1,700 increase to revenues
Increased the transfer out from the General Fund and the transfer in to the Affordable
Housing Fund by $200,000 and also increased the expenditures for the Affordable Housing
Fund by $200,000.
The final proposed property tax levy rate for FY2026 is $15.633 per $1,000 of taxable
valuation; this is unchanged from the proposed levy rate presented in January. The FY2026
levy rate is unchanged from Iowa City's FY2025 levy rate of $15.633 per $1,000 of taxable
valuation. This is the fourth consecutive year that the levy has been unchanged.
3/19/25, 1:56 PM
Local Government Property Valuation System
NOTICE OF PUBLIC HEARING -- PROPOSED BUDGET
Fiscal Year July 1, 2025 - June 30, 2026
City of: IOWA CITY
The City Council will conduct a public hearing on the proposed Budget at: 410 E. Washington St., Emma Harvat Hall Meeting Date: 4/15/2025 Meeting
Time: 06:00 PM
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of, any part of the proposed budget. This notice represents a
summary of the supporting detail of revenues and expenditures on File with the City Clerk and County Auditor.
City budgets are subject to protest. If protest petition requirements are met, the State Appeal Board will hold a local hearing. For more information, consult
http§.//dom.iowa.gov/local-budgetet=aappeals.
The Budget Estimate Summary of proposed receipts and expenditures is shown below. Copies of the the detailed proposed Budget may be obtained or
viewed at the offices of the Mayor, City Clerk, and at the Library.
e estimated Total tax levy rate per 1000 valuation on regular property
15.63305
e estimated tax levy rate per 1000 valuation on Agricultural property is
3.00375
At the public hearing, any resident or taxpayer may present objections to, or arguments in favor of, any part of the proposed budget.
Phone Number City Clerk/Finance Officer's NAM
(319) 356-5041 Kellie Grace
Budget FY 2026
Re -estimated FY 2025
Actual FY 2024
Revenues & Other Financing Sources
Taxes Levied on Property
1
70,579,069
68,821,450
66,212,366
Less: Uncollected Property Taxes -Levy Year
2
0
0
0
Net Current Property Taxes
3
70,579,069
68,821,450
66,212,366
Delinquent Property Taxes
4
0
0
13,185
TIE Revenues
5
4,166,800
4,388,100
4,304,866
Other City Taxes
6
4,734,689
3,576,300
3,822,266
Licenses & Permits
7
2,182,800
2,122,880
3,044,155
Use of Money and Property
8
3,251,300
3,171,385
11,733,188
Intergovernmental
9
55,441,442
57,211,304
39,341,011
Charges for Fees & Service
10
58,013,200
54,475,737
51,697,337
Special Assessments
11
800
2,000
0
Miscellaneous
12
11,522,600
5,764,761
3,454,212
Other Financing Sources
13
14,257,700
49,922,475
12,658,945
Transfers In
14
54,811,177
65,414,310
65,314,522
Total Revenues and Other Sources
15
278,961,577
314,870,702
261,596,053
Expenditures & Other Financing Uses
Public Safety
16
33,296,700
32,281,191
29,663,236
Public Works
17
13,695,700
13,253,200
12,254,943
Health and Social Services
18
684,700
687,576
696,500
Culture and Recreation
19
18,163,300
17,751,560
16,898,654
Community and Economic Development
20
10,874,050
25,779,100
16,722,676
General Government
21
14,375,600
14,516,677
12,627,157
Debt Service
22
14,390,900
13,787,740
13,189,955
Capital Projects
23
37,577,800
74,005,769
20,533,546
Total Government Activities Expenditures
24
143,058,750
192,062,813
122,586,667
Business Type / Enterprises
25
94,945,774
145,081,853
71,617,362
Total ALL Expenditures
26
238,004,524
337,144,666
194,204,029
Transfers Out
27
54,811,177
65,414,310
65,314,522
Total ALL Expenditures/Transfers Out
28
292,815,701
402,558,976
259,518,551
Excess Revenues & Other Sources Over (Under) Expenditures/Transfers Out
29
-13,854,124
-87,688,274
21077,502
Beginning Fund Balance July 1
30
151,768,394
239,456,668
237,379,166
Ending Fund Balance June 30
31
137,914,270
151,768,394
239,456,668
https://dom-localgov.iowa.gov/budget-renderer?id=21391 1 /2
3/19/25, 1:56 PM
Local Government Property Valuation System
https://dom-localgov.iowa.gov/budget-renderer?id=21391 2/2
FISCALYEAR JULY 1, 2925 - JUNE 30, 2026
ADOPTION OF BUDGET AND CERTIFICATION OF CITY TAXES
The Cityof : IOWA CITY CountyName: JOHNSON COLNTY
Adopted On: 4/15/2025 Resolution: 25-94
The below -signed certifies that the City Council, on the date stated above, lawfully approved the named resolution adopting a budget for next fiscal year, as
summarized on this and the supporting pages.
Attached is Long Term Debt Schedule Form 703 which lists any and all of the debt service obligations of the City.
With Gay & Electric
Without Gas & Electric
Regular 2a
DEBT SERVICE 3a
4,493,655,533
4,618,201-314
26
3b
4,4 1,042,140
4,575,547,90I
Ag Land 4al
lX6,809
!ilia.rr -i 1 Nall r:I'Y-jq:z4s'i
City Number: 52483
Last Official Census: 74,828 6
CGFL_ Rate
CGFL Dollars
Non-TIF Taxable w/ G&E
Taxable Growth
FY 2025 Budget Data 8.40196
36,792,773
4,379,070,267
2.62
Limitation Percentage
0
CGFL Max Rate
Max AIIawed CGFL for FY2026 8.40196
CGFL Max Dollars
37,755,850
Revenue Growth %
2,62
UNK-TER FIRE
(A) Request
(B)
CodeDollar
Limit
Purpose
DISTRICT
RATE
with Utility
Property h
Rate
qSec
BELOW
Replacement
Taxes Levied
384.1
8AO196
Consolidated General Fund
5
37,755,850
37,397,478
43
8.40116
Non -Voted Other Permissible Levies
384.12(1)
0.95000
Opr & Maint publicly owned Transit - _
7
4,2t 9,011
4,228,490
49
38412(2)
0.27000
Aviation Authority(andersec330A15)
Q:ODOOO
384.12(3).
AmtNec
Liability, property & stir insurance costs
14
1,619,708
[,604,3340
03 `
384.12(5)
Amt -4cc
Support of a Local Emerg.Mgmt.Comm.
!
462
Voted Other Permissible Levies _
28E.22
150000
Unificd Law Enfdfceatcnt
24
0
62
0 00000
.
Total General Fund Regular .Levies (S thro 24)
25
43,644,569
43�0,302
384.1
3.00375
AgLand
261
31686
3,686
63
;3.00375
Total General Fund Tax Levies (25 + 26)
27
43,648,255
43,233,988
Do Not ,.
Add
Special&
384.E
Am'
FiTen Retirement
Police &Fire Retirement
29
3,500,139
3,466,917
3,466,917
0.77840,
.77890
Amt Nec
FICA & IPERS (if general fund at levy limit)
i47
4,091,665
1"
Rules
AmtNec
Other Employee Benefits
30
7,02
I,91926'
Subtotal Employee Benefit Levy (20,10,31)
32
14,653,701
14,514,671
65
3 26096'
Valuation
Without
386
As Req
With Gas & Elec
Gas & Elec
SSMID 1 (A)
217,309,709
(B)
217,309,709
34
543,274
543,274
66
2.50000
SSMID 2 (A)
23,519,526
(B)
23,519,526
35
117,597
117,597
W7&.+197
SSMID 3 (A)
0
(B)
0
36
0
68
'0.00000
SSMM 4 (A)
0
(B)
1 0
37
0
691
0,000(10„
SSNM 5 (A)
0
(B)
0
555
0
565
0.0001)0
SSMED 6 (A)
0
(B)
0
5561
0
566
0 00000
SSMID7 (A)
0
(a)
0
1177
0
1179
0.00000,
SSMID8 (A)
0
(B)
0
1l85
0
1187
0.000000
Total Special Revenue Levies
39
15,314,632
l 5,175,542,
384.41
AmtN
Debt Service Levy 76.10
i 3 (
40
12 .32,971
12,169,539
70
' 2.65969„
384,7
0,67500
Capital Protects (Capital Emprov. Reserve)
41
0
71
OA0000
Total Property Taxes (27+39+40+41)
42
721
15.63305
COUTITV AUDITOR - I certify the budget is in compliance with ALL the following: Budgets that DO :NOT meet ALL the criteria below are not statutorny compuant
& must be returned to the City for correction,
IJ
L-7—,�� N I -�
( 7 cpresen Live) (' ate) County Ata xtor) 10HNc;pt4l �+ i . at )
0k
APR 2'2 2025
4/9/25, 8:34 AM
Local Government Property Valuation System
CITY NAME: NOTICE OF PUBLIC HEARING - CITY OF IOWA CITY - PROPOSED PROPERTY TAX LEVY CITY #: 52-483
IOWA CITY Fiscal Year July 1, 2025 - June 30, 2026
The City Council will conduct a public hearing on the proposed Fiscal Year City property tax levy as follows:
Meeting Date: 4/1/2025 Meeting Time: 04:00 PM Meeting Location: 410 E. Washington St., Emma Harvat Hall
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of the proposed tax levy. After the hearing of the proposed tax
levy, the City Council will publish notice and hold a hearing on the proposed city budget.
City Website (if available)
icgov.org
City Telephone Number
(319) 356-5041
Iowa Department of Management
Current Year Certified
Property Tax 2024 - 2025
Budget Year Effective
Property Tax 2025 - 2026
Budget Year Proposed
Property Tax 2025 - 2026
Taxable Valuations for Non -Debt Service
4,337,083,806
4,451,042,140
4,451,042,140
Consolidated General Fund
36,440,005
36,440,005
37,397,478
Operation & Maintenance of Public Transit
4,120,230
4,120,230
4,228,490
Aviation Authority
0
0
0
Liability, Property & Self Insurance
1,563,258
1,563,258
1,604,334
Support of Local Emergency Mgmt. Comm.
0
0
0
Unified Law Enforcement
0
0
0
Police & Fire Retirement
3,378,155
3,378,155
3,466,917
FICA & IPERS (If at General Fund Limit)
4,347,710
4,347,710
4,091,665
Other Employee Benefits
6,777,995
6,777,995
6,956,089
Capital Projects (Capital Improv. Reserve)
0
0
0
Taxable Value for Debt Service
4,474,225,348
4,575,547,901
4,575,547,901
Debt Service
11,527,842
11,527,842
12,169,539
CITY REGULAR TOTAL PROPERTY TAX
68,155,195
68,155,195
69,914,512
CITY REGULAR TAX RATE
15.63305
15.24172
15.63305
Taxable Value for City Ag Land
1,285,294
1,226,809
1,226,809
Ag Land
3,861
3,861
3,686
CITY AG LAND TAX RATE
3.00375
3.14719
3.00375
Tax Rate Comparison -Current VS. Proposed
Residential property with an Actual/Assessed Valuation of
$100,000/$110,000
Current Year Certified
2024/2025
Budget Year Proposed
2025/2026
Percent Change
City Regular Residential
724
816
12.71
Commercial property with an Actual/Assessed Valuation of
$300,000/$330,000
Current Year Certified
2024/2025
Budget Year Proposed
2025/2026
Percent Change
City Regular Commercial
3,197
3,645
14.01
Note: Actual/Assessed Valuation is multiplied by a Rollback Percentage to get to the Taxable Valuation to calculate Property Taxes. Residential and commercial properties
have the same rollback percentage through $150,000 of actual/assessed valuation.
Reasons for tax increase if proposed exceeds the current:
Property tax askings for fiscal year 2026 are 2.58%higher than those of fiscal year 2025. Salaries and benefits increased 3.81%, as well as, inflationary increases in
insurance, supplies and materials.
https://dom-localgov.iowa.gov/budget-renderer?id=21391 2/20
FUND BALANCE
N
n
0
3
0
v
(
0
o'
v
c0
0
s
n
m
m
n
m
m
ZJ
Q
CL
w
City Name: IOWA CITY
Fiscal Year July 1, 2025 - June 30, 2026
GENERAL
SPECIAL
REVENUES
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
TOTAL
GOVERNMENT
PROPRIETARY
GRAND
TOTAL
Annual Report FY 2024
Beginning Fund Balance July
1
59,512,920
34,219,883
186,088
7,252,520
32,475,993
125,706
133,773,110
103,606,056
237,379,166
Actual Revenues Except Beg Balance
2
86,462,324
32,841,376
4,576,291
13,425,288
19,867,662
6,490
157,179,431
104,416,622
261,596,053
Actual Expenditures Except End Balance
3
79,854,061
1 43,592,498
3,895,139
13,189,955
20,533,546
0
161,065,199
98,453,352
259,518,551
Ending Fund Balance June30
4
66,121,183
23,468,761
867,240
7,487,853
31,810,109
132,196
129,887,342
109,569,326
239,456,668
Re -Estimated FY 2025
Beginning Fund Balance
5
66,121,183
23,468,761
867,240
7,487,853
31,810,109
132,196
129,887,342
109,569,326
239,456,668
Re -Est Revenues
6
76,287,139
34,757,006
4,538,100
13,550,842
43,774,700
0
172,907,787
141,962,915
314,870,702
Re -Est Expenditures
7
104,747,695
38,976,429
4,346,600
13,787,740
74,005,769
0
235,864,233
166,694,743
402,558,976
Ending Fund Balance
8
37,660,627
19,249,338
1,058,740
7,250,955
1,579,040
132,196
66,930,896
84,837,498
151,768,394
Budget FY 2026
Beginning Fund Balance
9
37,660,627
19,249,338
1,058,740
7,250,955
1,579,040
132,196
66,930,896
84,837,498
151,768,394
Revenues
10
79,773,555
31,361,132
4,323,200
13,993,071
32,825,300
0
162,276,258
116,685,319
278,961,577
Expenditures
11
82,684,600
33,114,750
4,346,800
14,390,900
37,577,800
0
172,114,850
120,700,851
292,815,701
Ending Fund Balance
12
34,749,582
17,495,720
1,035,140
6,853,126
-3,173,460
1132,1961
57,092,3041
80,821,9661
137,914,270
v
LOCAL EMC SUPPORT
N
n
O
0
0
v
c0
O
o'
v
cQ
0
s
C
n
m
m
D
n
m
m
�J
tZ
N_
Cl)
City Name: IOWA CITY
Fiscal Year July 1, 2025 - June 30, 2026
As provided in Iowa Code Section 384.12, subsection 22, a city may levy the amount necessary in support of a local Emergency Management Commission. In addition to this individual levy, Emergency Management
Commission support may also be included as part of the General Fund Levy. Iowa Code Section 29C.17, subsection 6 states that any support from cities or counties must be separately reported on tax statements issued
by the county treasurer. Input the amount of General Fund Levy request to be used for support of an Emergency Management Commission. The total below will reflect the total amount of Emergency Management
Commission support provided by the City.
Request with Utility Replacement
Property Taxes Levied
Portion of General Fund Levy Used for Emerg. Mgmt. Comm.
0
Support of a Local Emerg.Mgmt.Comm.
0
0
TOTAL FOR FY 2026
0
0
N
cn
O
(D
U)
N
lD
3
RE -ESTIMATED EXPENDITURES SCHEDULE PAGE 1
N
n
0
3
0
0
v
cQ
0
o'
W
v
cQ
0
s
n
m
m
D
n
m
m
�J
Q
N
w
E
City Name: IOWA CITY
Fiscal Year July 1, 2024 - June 30, 2025
GOVERNMENT ACTIVITIES CONT.
GENERAL
SPECIAL
VENUE
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
RE -ESTIMATED
2025
ACTUAL
2024
PUBLIC SAFETY
Police Department/Crime Prevention
1
17,020,653
17,020,653
15,431,094
Jail
2
0
0
Emergency Management
31
0
0
Flood Control
4
0
0
Fire Department
5
11,176,588
11,176,588
9,879,949
Ambulance
6
0
0
Building Inspections
7
2,258,950
2,258,950
2,124,993
Miscellaneous Protective Services
8
0
0
Animal Control
9
1,153,500
1,153,500
1,091,380
Other Public Safety
10
3,500
668,000
671,500
1,135,820
TOTAL (lines 1 - 10)
11
31,613,191
668,000
0
32,281,191
29,663,236
PUBLIC WORKS
Roads, Bridges, & Sidewalks
12
5,345,700
5,345,700
4,984,555
Parking - Meter and Off -Street
13
0
0
Street Lighting
14
461,900
461,900
0
Traffic Control and Safety
15
951,800
951,800
11530,414
Snow Removal
16
714,200
714,200
487,022
Highway Engineering
17
3,691,600
3,691,600
3,264,174
Street Cleaning
18
412,900
412,900
346,637
Airport (if not Enterprise)
19
0
0
Garbage (if not Enterprise)
20
0
0
Other Public Works
21
1,576,400
98,700
1,675,100
1,642,141
TOTAL (lines 12 - 21)
22
5,268,000
7,985,200
0
13,253,200
12,254,943
HEALTH & SOCIAL SERVICES
Welfare Assistance
23
0
0
City Hospital
24
0
0
Payments to Private Hospitals
25
0
0
Health Regulation and Inspection
26
0
0
Water, Air, and Mosquito Control
27
0
0
Community Mental Health
28
0
0
Other Health and Social Services
29
687,576
687,576
696,500
TOTAL (lines 23 - 29)
30
687,576
0
0
687,576
696,500
CULTURE & RECREATION
Library Services
31
7,887,900
71887,900
7,561,093
Museum, Band and Theater
32
0
0
Parks
33
3,935,820
3,935,820
3,560,123
Recreation
34
4,295,700
4,295,700
4,280,410
Cemetery
35
461,390
461,390
429,612
Community Center, Zoo, & Marina
36
0
0
Other Culture and Recreation
1371
1,170,7501
i
i
i
i 1,170,750
1,067,416
TOTAL (lines 31 - 37)
1381
17,751,560
1 01
101
117,751,560
1 16,898,654
N
cn
v
0
(D
U)
m
3
RE -ESTIMATED EXPENDITURES SCHEDULE PAGE 2
N
n
0
3
0
0
v
(a
0
o'
W
v
cQ
0
s
n
m
m
D
n
m
m
�J
iz
N_
W
City Name: IOWA CITY
Fiscal Year July 1, 2024 - June 30, 2025
GOVERNMENT ACTIVITIES CONT.
GENERAL
SPECIAL
VENUE
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
RE -ESTIMATED
2025
ACTUAL
2024
COMMUNITY & ECONOMIC DEVELOPMENT
Community Beautification
39
123,460
123,460
280,677
Economic Development
40
1,512,700
1,512,700
6,249,963
Housing and Urban Renewal
41
5,298,322
5,298,322
4,767,037
Planning & Zoning
42
1,557,919
1,557,919
1,133,218
Other Com & Econ Development
43
8,414,510
6,110,389
2,761,800
17,286,699
4,291,781
TIF Rebates
44
0
0
TOTAL (lines 39 - 44)
45
11,608,589
11,408,711
2,761,800
0
25,779,100
16,722,676
GENERAL GOVERNMENT
Mayor, Council, & City Manager
46
2,115,350
2,115,350
2,379,080
Clerk, Treasurer, & Finance Adm.
47
3,965,005
3,965,005
3,670,737
Elections
48
0
0
Legal Services & City Attorney
49
1,015,048
1,015,048
942,211
City Hall & General Buildings
50
864,600
864,600
915,171
Tort Liability
51
1,618,600
1,618,600
1,452,612
Other General Government
52
4,279,376
658,698
4,938,074
3,267,346
TOTAL (lines 46 - 52)
53
13,857,979
658,698
0
0
14,516,677
12,627,157
DEBT SERVICE
54
13,787,740
13,787,740
13,189,955
Gov Capital Projects
55
74,005,769
74,005,769
20,533,546
TIF Capital Projects
56
0
0
TOTAL CAPITAL PROJECTS
57
0
0
0
74,005,769
0
74,005,769
20,533,546
TOTAL Governmental Activities Expenditures (lines
11+22+30+38+44+52+53+54)
58
80,786,895
20,720,609
2,761,800
13,787,740
74,005,769
0
192,062,813
122,586,667
BUSINESS TYPE ACTIVITIES Proprietary: Enterprise &
Budgeted ISF
Water Utility
59
9,840,976
9,840,976
7,547,746
Sewer Utility
60
8,890,100
8,890,100
8,177,860
Electric Utility
61
0
0
Gas Utility
62
0
0
Airport
63
415,250
415,250
464,350
Landfill/Garbage
64
11,068,702
11,068,702
10,318,615
Transit
65
17,631,700
17,631,700
9,694,273
Cable TV, Internet & Telephone
66
0
0
Housing Authority
67
12,693,767
12,693,767
13,011,104
Storm Water Utility
68
681,900
681,900
592,086
Other Business Type (city hosp., ISF, parking, etc.)
69
5,208,907
5,208,907
4,097,266
Enterprise DEBT SERVICE
70
1,351,900
1,351,900
1,800,825
Enterprise CAPITAL PROJECTS
71
77,298,651
77,298,651
15,913,237
Enterprise TIF CAPITAL PROJECTS
72
0
0
TOTAL BUSINESS TYPE EXPENDITURES (lines 59+72)
73
145,081,853
145,081,853
71,617,362
TOTAL ALL EXPENDITURES (lines 58+73)
74
80,786,895
20,720,609
2,761,800
13,787,740
74,005,769
0
145,081,853
337,144,666
194,204,029
Regular Transfers Out
75
23,810,800
18,255,820
21,612,890
63,679,510
63,421,759
Internal TIF Loan Transfers Out
76
150,000
1,584,800
1,734,800
1,892,763
Total ALL Transfers Out
77
23,960,800
18,255,820
1,584,800
0
0
0
21,612,890
65,414,310
65,314,522
Total Expenditures and Other Fin Uses (lines 74+77)
78
104,747,6951
38,976,429
1 4,346,600
13,787,740
74,005,769
0
166,694,743
402,558,976
259,518,551
Ending Fund Balance June 30
79
37,660,627
1 19,249,3381
1,058,7401
7,250,9551
1,579,040
132,196
84,837,498
151,768,394
239,456,668
N
cn
v
0
(D
U)
m
3
RE -ESTIMATED REVENUES DETAIL
N
Q
0
3
0
0
v
c0
0
O�
v
0
0
s
C
Q
m
m
D
Q
m
m
Z.
iz
N_
W
(0
City Name: IOWA CITY
Fiscal Year July 1, 2024 - June 30, 2025
REVENUES & OTHER FINANCING SOURCES
GENERAL
SPECIAL
REVENUE
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
RE -ESTIMATED
2025
ACTUAL
2024
Taxes Levied on Property
1
42,127,354
15,166,254
11,527,842
68,821,450
66,212,366
Less: Uncollected Property Taxes - Levy Year
2
0
0
Net Current Property Taxes (line 1 minus line 2)
3
42,127,354
15,166,254
11,527,842
0
68,821,450
66,212,366
Delinquent Property Taxes
4
0
13,185
TIF Revenues
5
1
4,388,100
1
4,388,100
4,304,866
Other City Taxes:
Utility Tax Replacement Excise Taxes
6
407,800
140,400
108,200
656,400
748,119
Utility francise tax (Iowa Code Chapter 364.2)
7
1,116,700
1,116,700
982,969
Parimutuel wager tax
8
0
0
Gaming wager tax
9
0
0
Mobile Home Taxes
10
33,1001
11,300
8,400
52,800
47,992
Hotel/MotelTaxes
11
1,750,400
1,750,400
2,043,186
Other Local Option Taxes
12
0
0
Subtotal - Other City Taxes (lines 6 thru 12)
13
3,308,000
151,700
116,600
0
3,576,300
3,822,266
Licenses & Permits
14
2,117,900
4980
2,122,880
3,044,155
Use of Money & Property
15
1,011,300
286,785
54,500
1,818,800
3,171,385
11,733,188
Intergovernmental:
Federal Grants & Reimbursements
16
310,529
5,246,867
2,078,710
30,139,723
37,775,829
21,844,945
Road Use Taxes
17
10,500,000
10,500,000
10,580,121
Other State Grants & Reimbursements
18
940,600
319,900
224,500
1,821,470
1,249,000
4,555,470
3,074,340
Local Grants &Reimbursements
19
3,143,305
555,200
638,600
42,900
4,380,005
3,841,605
Subtotal - Intergovernmental(lines 16 thru 19)
20
4,394,434
16,621,967
0
224,500
4,538,780
31,431,623
57,211,304
39,341,011
Charges for Fees & Service:
Water Utility
21
11,900,300
11,900,300
11, 831,090
Sewer Utility
22
13,208,100
13,208,100
12,795,479
Electric Utility
23
0
0
Gas Utility
24
0
0
Parking
25
14,000
7,254,787
7,268,787
51723,758
Airport
26
0
0
Landfill/Garbage
27
12,522,600
12,522,600
12,485,432
Hospital
28
0
0
Transit
29
400
400
91,428
Cable TV, Internet & Telephone
30
470,000
470,000
0
Housing Authority
31
0
0
Storm Water Utility
321
1,911,800
1,911,800
1,885,926
Other Fees & Charges for Service
33
7,125,2501
68,500
7,193,750
6,884,224
Subtotal - Charges for Service (lines 21 thru 33)
34
7,609,250
68,500
0
0
0
46,797,987
54,475,737
51,697,337
Special Assessments
35
2,000
2,000
0
Miscellaneous
36
1,542,101
340,100
65,200
2,341,610
1,475,750
5,764,761
3,454,212
Other Financing Sources:
Regular Operating Transfers In
37
13,711,400
2,121,700
20,100
22,604,110
25,222,200
63,679,510
63,421,759
Internal TIF Loan Transfers In
38
42,500
150,000
1,542,100
200
1,734,800
1,892,763
Subtotal ALL Operating Transfers In
39
13,753,900
2,121,700
150,000
1,562,200
22,604,310
0
25,222,200
65,414,310
65,314,522
Proceeds of Debt (Excluding TIF Internal Borrowing)
40
14,290,000
35,211,575
49,501,575
11,616,402
Proceeds of Capital Asset Sales
41
420,900
420,900
1,042,543
Subtotal -Other Financing Sources (lines 36 thru 38)
42
14,174,800
2,121,700
150,000
1,562,200
36,894,310
0
60,433,775
115,336,785
77,973,467
Total Revenues except for beginning fund balance (lines 3, 4, 5, 12, 13, 14, 19,
33, 34, 35, & 39)
43
76,287,139
34,757,006
4,538,100
13,550,842
43,774,700
0
141,962,915
314,870,702
261,596,053
Beginning Fund Balance July l
1441
66,121,183
23,468,761
867,240
7,487,8531
31,810,109
132,196
109,569,326
239,456,668
237,379,166
TOTAL REVENUES & BEGIN BALANCE (lines 41+42)
145
1142,408,322
58,225,767
5,405,340
21,038,695
1 75,584,809
132,196
251,532,241
554,327,370
498,975,219
N
Cn
0
m
N
m
3
EXPENDITURES SCHEDULE PAGE 1
N
n
0
3
0
0
v
cQ
0
o'
v
c0
0
s
C
n
m
m
D
n
m
m
�J
Q
N
w
City Name: IOWA CITY
Fiscal Year July 1, 2025 - June 30, 2026
GOVERNMENT ACTIVITIES
GENERAL
SPECIAL
REVENUES
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
BUDGET
2026
RF-
ESTIMATED
2025
ACTUAL
2024
PUBLIC SAFETY
Police Department/Crime Prevention
1
17,520,200
17,520,200
17,020,653
15,431,094
Jail
2
0
0
0
Emergency Management
3
0
0
0
Flood Control
4
0
0
0
Fire Department
5
11,002,600
11,002,600
11,176,588
9,879,949
Ambulance
6
0
0
0
Building Inspections
7
2,358,500
2,358,500
2,258,950
2,124,993
Miscellaneous Protective Services
8
0
0
0
Animal Control
9
1,168,300
1,168,300
1,153,500
1,091,380
Other Public Safety
10
1,600
1,245,500
1,247,100
671,500
1,135,820
TOTAL (lines 1 - 10)
11
32,051,200
1,245,500
0
33,296,700
32,281,191
29,663,236
PUBLIC WORKS
Roads, Bridges, & Sidewalks
12
5,731,200
5,731,200
5,345,700
4,984,555
Parking - Meter and Off -Street
13
0
0
0
Street Lighting
14
470,100
470,100
461,900
0
Traffic Control and Safety
15
967,600
967,600
951,800
1,530,414
Snow Removal
16
509,300
509,300
714,200
487,022
Highway Engineering
17
3,926,400
3,926,400
3,691,600
3,264,174
Street Cleaning
18
380,100
380,100
412,900
346,637
Airport
19
0
0
0
Garbage (if not Enterprise)
20
0
0
0
Other Public Works
21
1,613,500
97,500
1,711,000
1,675,100
1,642,141
TOTAL (lines 12 - 21)
22
5,539,900
8,155,800
0
13,695,700
13,253,200
12,254,943
HEALTH & SOCIAL SERVICES
Welfare Assistance
23
0
0
0
City Hospital
24
0
0
0
Payments to Private Hospitals
25
0
0
0
Health Regulation and Inspection
26
0
0
0
Water, Air, and Mosquito Control
27
0
0
0
Community Mental Health
28
0
0
0
Other Health and Social Services
29
684,700
684,700
687,576
696,500
TOTAL (lines 23 - 29)
30
684,700
0
0
684,700
687,576
696,500
CULTURE & RECREATION
Library Services
31
8,242,200
8,242,200
7,887,900
7,561,093
Museum, Band and Theater
32
0
0
0
Parks
33
3,842,200
3,842,200
3,935,820
3,560,123
Recreation
34
4,394,700
4,394,700
4,295,700
4,280,410
Cemetery
35
1 486,400
486,400
461,390
429,612
Community Center, Zoo, & Marina
1361
0
0
0
Other Culture and Recreation
1371
1,197,800
1 1,197,8001
1,170,750
1,067,416
TOTAL (lines 31 - 37)
1381
18,163,300
0
01
1 18,163,3001
17,751,560
16,898,654
N
cn
v
0
(D
U)
m
3
EXPENDITURES SCHEDULE PAGE 2
N
n
0
3
0
0
v
(a
0
o'
v
c0
0
s
C
n
m
m
D
n
m
m
�J
tZ
N
w
City Name: IOWA CITY
Fiscal Year July 1, 2025 - June 30, 2026
GOVERNMENT ACTIVITIES
GENERAL
SPECIAL
REVENUES
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
BUDGET
2026
ESTIMATED
2025
ACTUAL
2024
COMMUNITY & ECONOMIC DEVELOPMENT
Community Beautification
39
52,000
52,000
123,460
280,677
Economic Development
40
1,640,300
1,640,300
1,512,700
6,249,963
Housing and Urban Renewal
41
3,134,750
3,134,750
5,298,322
4,767,037
Planning & Zoning
42
1,297,300
1,297,300
1,557,919
1,133,218
Other Com & Econ Development
43
421,200
1,625,900
2,702,600
4,749,700
17,286,699
4,291,781
TIF Rebates
44
0
0
0
TOTAL (lines 39 - 44)
45
3,410,800
4,760,650
2,702,600
0
10,874,050
25,779,100
16,722,676
GENERAL GOVERNMENT
Mayor, Council, & City Manager
46
2,186,600
2,186,600
2,115,350
2,379,080
Clerk, Treasurer, & Finance Adm.
47
4,140,100
4,140,100
3,965,005
3,670,737
Elections
48
0
0
0
Legal Services & City Attorney
49
1,065,100
1,065,100
1,015,048
942,211
City Hall & General Buildings
50
893,700
893,700
864,600
915,171
Tort Liability
51
1,842,400
1,842,400
1,618,600
1,452,612
Other General Government
52
3,601,300
646,400
4,247,700
4,938,074
3,267,346
TOTAL (lines 46 - 52)
53
13,729,200
646,400
0
0
14,375,600
14,516,677
12,627,157
DEBT SERVICE
54
14,390,900
14,390,900
13,787,740
13,189,955
Gov Capital Projects
55
37,577,800
37,577,800
74,005,769
20,533,546
TIF Capital Projects
56
0
0
0
TOTAL CAPITAL PROJECTS
57
01
0
0
37,577,800
0
37,577,800
1 74,005,769
20,533,546
TOTAL30+38+n ent +53+54+57)es Expenditures (lines
11+22+30+38+45+53+54+57)
58
73,579,100
14,808,350
2,702,600
14,390,900
37,577,800
0
143,058,750
192,062,813
122,586,667
BUSINESS TYPE ACTIVITIES
Proprietary: Enterprise & Budgeted ISF
Water Utility
59
10,302,200
10,302,200
9,840,976
7,547,746
Sewer Utility
60
1
13,718,400
13,718,400
8,890,100
8,177,860
Electric Utility
61
01
0
0
Gas Utility
62
0
0
0
Airport
63
426,100
426,100
415,250
464,350
Landfill/Garbage
64
11,477,900
11,477,900
11,068,702
10,318,615
Transit
65
10,144,700
10,144,700
17,631,700
9,694,273
Cable TV, Internet & Telephone
66
0
0
0
Housing Authority
67
13,828,129
13,828,129
12,693,767
13,011,104
Storm Water Utility
68
902,900
902,9001
681,900
592,086
Other Business Type (city hosp., ISF, parking, etc.)
69
5,320,800
5,320,800
5,208,907
4,097,266
Enterprise DEBT SERVICE
70
562,100
562,100
1,351,900
1,800,825
Enterprise CAPITAL PROJECTS
71
28,262,545
28,262,545
77,298,651
15,913,237
Enterprise TIF CAPITAL PROJECTS
72
0
0
0
TOTAL Business Type Expenditures (lines 59 - 72)
73
94,945,774
94,945,774
145,081,853
71,617,362
TOTAL ALL EXPENDITURES (lines 58 + 73)
74
73,579,100
14,808,350
2,702,600
14,390,900
37,577,800
0
94,945,774
238,004,524
337,144,666
194,204,029
Regular Transfers Out
75
8,949,100
18,306,400
25,755,077
53,010,577
63,679,510
63,421,759
Internal TIF Loan / Repayment Transfers Out
76
156,400
1,644,200
1,800,600
1,734,800
1,892,763
Total ALL Transfers Out
77
9,105,500
18,306,400
1,644,200
0
0
0
25,755,077
54,811,177
65,414,310
65,314,522
Total Expenditures & Fund Transfers Out (lines 74+77)
78
82,684,600
33,114,750
4,346,800
14,390,900
37,577,800
0
120,700,851
292,815,701
402,558,976
259,518,551
Ending Fund Balance June30
1791
34,749,582
1 17,495,720
1,035,140
6,853,126
-3,173,460
132,1961
80,821,966
137,914,270
151,768,3941
239,456,668
v
REVENUES DETAIL
N
Q
0
3
0
0
v
c0
0
o'
Q)
01
cQ
0
Cr
Q
m
m
Q
m
m
�J
iz
u
N_
W
(fl
City Name: IOWA CITY
Fiscal Year July 1, 2025 - June 30, 2026
GENERAL
SPECIAL
REVENUES
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
BUDGET
2026
ESTIMATED
IMA
2025
ACTUAL
2024
REVENUES & OTHER FINANCING SOURCES
Taxes Levied on Property
1
43,233,988
15,175,542
12,169,539
0
70,579,069
68,821,450
66,212,366
Less: Uncollected Property Taxes - Levy Year
2
0
0
0
Net Current Property Taxes (line 1 minus line 2)
3
43,233,988
15,175,542
12,169,539
0
70,579,069
68,821,450
66,212,366
Delinquent Property Taxes
4
0
0
13,185
TIF Revenues
5
4,166,800
4,166,800
4,388,100
4,304,866
Other City Taxes:
Utility Tax Replacement Excise Taxes
6
414,267
139,090
113,432
0
666,789
656,400
748,119
Utility francise tax (Iowa Code Chapter 364.2)
7
1,972,000
1,972,000
1,116,700
982,969
Parimutuel wager tax
8
01
0
0
Gaming wager tax
9
0
0
0
Mobile Home Taxes
10
33,100
11,300
8,400
52,800
52,800
47,992
Hotel/MotelTaxes
11
2,043,100
2,043,100
1,750,400
2,043,186
Other Local Option Taxes
12
0
0
0
Subtotal - Other City Taxes (lines 6 thru 12)
13
4,462,467
150,390
121,832
0
4,734,689
3,576,300
3,822,266
Licenses & Permits
14
2,172,400
10400
2,182,800
2,122,880
3,044,155
Use of Money & Property
15
1,020,500
296,400
52,400
1,882,000
3,251,300
3,171,385
11,733,188
Intergovernmental:
Federal Grants & Reimbursements
16
265,100
1,870,500
520,000
35,926,742
38,582,342
37,775,829
21,844,945
Road Use Taxes
17
10,800,000
10,800,000
10,500,000
10,580,121
Other State Grants & Reimbursements
18
689,700
220,500
154,700
916,300
1,981,200
4,555,470
3,074,340
Local Grants &Reimbursements
19
3,326,900
561,900
143,700
45,400
4,077,900
4,380,005
3,841,605
Subtotal - Intergovernmental (lines 16 thru 19)
20
4,281,700
13,452,900
0
154,700
663,700
36,888,442
55,441,442
57,211,304
39,341,011
Charges for Fees & Service:
Water Utility
21
12,668,700
12,668,700
11,900,300
11, 831,090
Sewer Utility
22
13,516,300
13,516,300
13,208,100
12,795,479
Electric Utility
23
0
0
0
Gas Utility
24
0
0
0
Parking
25
13,600
7,342,800
7,356,400
7,268,787
5,723,758
Airport
26
0
0
0
Landfill/Garbage
27
13,323,600
13,323,600
12,522,600
12,485,432
Hospital
28
0
0
0
Transit
29
0
400
91,428
Cable TV, Internet & Telephone
30
470,000
470,000
470,000
0
Housing Authority
31
01
0
0
Storm Water Utility
32
1,907,700
1,907,700
1,911,800
1,885,926
Other Fees & Charges for Service
33
8,670,500
100,000
8,770,500
7,193,750
6,884,224
Subtotal- Charges for Service (lines 21 thru 33)
34
9,154,100
100,000
0
0
0
48,759,100
58,013,200
54,475,737
51,697,337
Special Assessments
35
800
800
2,000
0
Miscellaneous
36
1,575,400
204,1001
23,500
8,835,000
884,600
11,522,600
5,764,761
3,454,212
Other Financing Sources:
Regular Operating Transfers In
371
13,252,000
1,981,800
20,100
9,495,900
28,260,777
53,010,577
63,679,510
63,421,759
Internal TIF Loan Transfers In
38
192,500
156,400
1,451,000
700
1,800,6001
1,734,800
1,892,763
Subtotal ALL Operating Transfers In
39
13,444,500
1,981,800
156,400
1,471,100
9,496,600
0
28,260,777
54,811,177
65,414,310
65,314,522
Proceeds of Debt (Excluding TIF Internal Borrowing)
40
13,830,000
13,830,000
49,501,575
11,616,402
Proceeds of Capital Asset Sales
41
427,700
427,700
420,900
1,042,543
Subtotal -Other Financing Sources (lines 38 thru 40)
42
13,872,200
1,981,8001
156,400
1,471,100
23,326,600
0
28,260,777
69,068,877
115,336,785
77,973,467
Total Revenues except for beginning fund balance (lines 3, 4, 5, 13, 14,
15, 20, 34, 35, 36, & 41)
43
79,773,555
31,361,132
4,323,200
13,993,071
32,825,300
0
116,685,319
278,961,577
314,870,702
261,596,053
Beginning Fund Balance July 1
441
37,660,627
19,249,338
1,058,740
7,250,955
1,579,040
132,1961
84,837,4981
151,768,3941
239,456,668
237,379,166
TOTAL REVENUES & BEGIN BALANCE (lines 42+43)
45
1117,434,182
50,610,470
5,381,940
21,244,026
34,404,340
132,1961
201,522,817
1 430,729,9711
554,327,370
498,975,219
N
Cn
0
(D
U)
N
m
3
ADOPTED BUDGET SUMMARY
N
n
0
3
0
0
v
(
0
o'
v
c0
0
s
C
n
m
m
n
m
m
ZJ
Q
CL
w
City Name: IOWA CITY
Fiscal Year July 1, 2025 - June 30, 2026
GENERAL
SPECIAL
REVENUES
TIF SPECIAL
REVENUES
DEBT
SERVICE
CAPITAL
PROJECTS
PERMANENT
PROPRIETARY
BUDGET
2026
RE -ESTIMATED
2025
ACTUAL
2024
Revenues & Other Financing Sources
Taxes Levied on Property
1
43,233,988
15,175,542
12,169,539
0
70,579,069
68,821,450
66,212,366
Less: Uncollected Property Taxes -Levy Year
2
0
0
0
0
0
0
0
Net Current Property Taxes
3
43,233,988
15,175,542
12,169,539
0
70,579,069
68,821,450
66,212,366
Delinquent Property Taxes
4
0
0
0
0
0
0
13,185
TIF Revenues
5
4,166,800
4,166,800
4,388,100
4,304,866
Other City Taxes
6
4,462,467
150,390
121,832
0
4,734,689
3,576,300
3,822,266
Licenses & Permits
7
2,172,400
0
10,400
2,182,800
2,122,880
3,044,155
Use of Money and Property
8
1,020,500
296,400
0
52,400
0
0
1,882,000
3,251,300
3,171,385
11,733,188
Intergovernmental
9
4,281,700
13,452,900
0
154,700
663,700
36,888,442
55,441,442
57,211,304
39,341,011
Charges for Fees & Service
10
9,154,100
100,000
0
0
0
48,759,100
58,013,200
54,475,737
51,697,337
Special Assessments
11
800
0
0
0
0
800
2,000
0
Miscellaneous
12
1,575,400
204,100
23,500
8,835,000
0
884,600
11,522,600
5,764,761
3,454,212
Sub -Total Revenues
13
65,901,355
29,379,332
4,166,800
12,521,971
9,498,700
0
88,424,542
209,892,700
199,533,917
183,622,586
Other Financing Sources:
Total Transfers In
14
13,444,500
1,981,800
156,400
1,471,100
9,496,600
0
28,260,777
54,811,177
65,414,310
65,314,522
Proceeds of Debt
15
0
0
0
0
13,830,000
0
13,830,000
49,501,575
11,616,402
Proceeds of Capital Asset Sales
16
427,700
0
0
0
0
0
0
427,700
420,900
1,042,543
Total Revenues and Other Sources
17
79,773,555
31,361,132
4,323,200
13,993,071
32,825,300
0
116,685,319
278,961,577
314,870,702
261,596,053
Expenditures & Other Financing Uses
Public Safety
18
32,051,200
1,245,500
0
0
33,296,700
32,281,191
29,663,236
Public Works
19
5,539,900
8,155,800
0
0
13,695,700
13,253,200
12,254,943
Health and Social Services
20
684,700
0
0
0
684,700
687,576
696,500
Culture and Recreation
21
18,163,300
0
0
0
18,163,300
17,751,560
16,898,654
Community and Economic Development
22
3,410,800
4,760,650
2,702,600
0
10,874,050
25,779,100
16,722,676
General Government
23
13,729,200
646,400
0
0
14,375,600
14,516,677
12,627,157
Debt Service
24
0
0
0
14,390,900
0
14,390,900
13,787,740
13,189,955
Capital Projects
25
0
0
0
37,577,800
0
37,577,800
74,005,769
20,533,546
Total Government Activities Expenditures
26
73,579,100
14,808,350
2,702,600
14,390,900
37,577,800
0
143,058,750
192,062,813
122,586,667
Business Type Proprietray: Enterprise & ISF
27
94,945,774
94,945,774
145,081,853
71,617,362
Total Gov & Bus Type Expenditures
28
73,579,100
14,808,350
2,702,600
14,390,900
37,577,800
0
94,945,774
238,004,524
337,144,666
194,204,029
Total Transfers Out
29
9,105,500
18,306,400
1,644,200
0
0
0
25,755,077
54,811,177
65,414,310
65,314,522
Total ALL Expenditures/Fund Transfers Out
30
82,684,600
33,114,750
4,346,800
14,390,900
37,577,800
0
120,700,851
292,815,701
402,558,976
259,518,551
Excess Revenues & Other Sources Over
31
(Under) Expenditures/Transfers Out
32
-2,911,045
-1,753,618
-23,600
-397,829
-4,752,500
0
-4,015,532
-13,854,124
-87,688,274
2,077,502
Beginning Fund Balance July 1
33
37,660,6271
19,249,338
1,058,740
7,250,955
1,579,040
132,196
84,837,498
151,768,394
239,456,668
237,379,166
Ending Fund Balance June 30
34
34,749,5821
17,495,720
1,035,140
6,853,126
-3,173,460
132,1961
80,821,9661
137,914,270
151,768,394
239,456,668
N
cn
v
0
(D
U)
m
3
LONG TERM DEBT SCHEDULE - LT DEBT1
N
n
0
3
0
v
c0
0
o'
v
c0
0
s
C
n
m
m
D
n
m
m
�J
tZ
N
w
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amon nt of
Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment of
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
2025 GO
1
14,490,000
GO
proposed
2,200,000
714,500
2,914,500
400
718,823
2,196,077
2016 GO
2
8,795,000
GO
16-162
1,035,000
20,700
1,055,700
400
1,056,100
2017 GO
31
9,765,000
GO
17-150
1,055,000
53,5001
1,108,500
400
162,784
946,116
2018 GO
4
8,895,000
GO
18-133
940,000
86,400
1,026,400
400
1,026,800
2019 GO
5
12,535,000
GO
19-116
905,000
80,100
985,100
400
985,500
2020 GO
6
12,145,000
GO
20-114
790,000
102,700
892,700
400
893,100
2021 GO
7
11,325,000
GO
21-121
1,135,000
226,500
1,361,500
400
1,361,900
2022 GO
8
10,255,000
GO
22-121
995,000
283,578
1,278,578
400
1,278,978
2023 GO
9
9,105,000
GO
23-136
920,000
332,700
1,252,700
400
1,253,100
2024 GO
10
10,140,000
GO
24-128
905,000
379,900
1,284,900
400
1,285,300
2016E TIF Revenue
11
12,805,000
NON -GO
16-255
950,000
269,250
1,219,250
400
1,219,650
0
2017 Water Revenue Refunding Bonds
12
5,910,000
NON -GO
17-154
555,000
6,244
561,244
400
561,644
0
2025 Sewer SRF
13
36,000,000
NON -GO
proposed
2,600,000
1,240,000
3,840,000
400
3,840,400
0
14
0
0
15
0
0
16
0
0
17
0
0
18
0
0
19
0
0
20
0
0
21
0
0
22
0
0
23
0
0
24
0
0
25
0
0
26
0
0
27
0
0
28
0
0
29
0
0
30
0
0
TOTALS
14,985,000
1 3,796,0721
18,781,072
5,200
01
6,503,301
12,282,971
v
LONG TERM DEBT SCHEDULE - LT DEBT2
N
n
0
0
v
c0
0
o'
v
c0
0
s
C
n
m
m
D
n
m
m
�J
iz
u
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amount
of Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
31
0
0
32
0
0
331
0
0
34
0
0
35
0
0
36
0
0
37
0
0
38
0
0
39
0
0
40
0
0
41
0
0
42
0
0
43
0
0
44
0
0
45
0
0
46
0
0
47
0
0
48
0
0
49
0
0
50
0
0
51
0
0
52
0
0
53
0
0
54
0
0
55
0
0
56
0
0
57
0
0
58
0
0
59
0
0
60
0
0
TOTALS
1 14,985,000
3,796,072
18,781,072
5,200
0
6,503,301
1 12,282,971
N
cn
v
0
(D
U)
m
3
LONG TERM DEBT SCHEDULE - LT DEBT3
to
n
0
0
v
c0
0
o'
v
c0
0
s
1
n
m
m
D
n
m
m
�J
Q
I I
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amount
of Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
61
0
0
62
0
0
631
0
0
64
0
0
65
0
0
66
0
0
67
0
0
68
0
0
69
0
0
70
0
0
71
0
0
72
0
0
73
0
0
74
0
0
75
0
0
76
0
0
77
0
0
78
0
0
79
0
0
80
0
0
81
0
0
82
0
0
83
0
0
84
0
0
85
0
0
86
0
0
87
0
0
88
0
0
89
0
0
90
0
0
TOTALS
1 14,985,0001
3,796,0721
18,781,0721
5,2001
01
6,503,3011
12,282,971
N
cn
v
0
m
to
rn
m
3
LONG TERM DEBT SCHEDULE - LT DEBT4
to
n
0
3
0
v
c0
0
o'
v
c0
0
s
1
n
m
m
D
n
m
m
�J
Q
I I
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amount
of Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment of
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
91
0
0
92
0
0
931
0
0
94
0
0
95
0
0
96
0
0
97
0
0
98
0
0
99
0
0
100
0
0
101
0
0
102
0
0
103
0
0
104
0
0
105
0
0
106
0
0
107
0
0
108
0
0
109
0
0
110
0
0
111
0
0
112
0
0
113
0
0
114
0
0
115
0
0
116
0
0
117
0
0
118
0
0
119
0
0
120
0
0
TOTALS
114,985,000
1 3,796,072
1 18 , 781,0721
5,2001
01
6,503,3011
12,282,971
N
cn
v
0
m
to
rn
m
3
LONG TERM DEBT SCHEDULE - LT DEBT5
N
n
0
3
0
v
c0
0
o'
v
c0
0
s
C
n
m
m
D
n
m
m
�J
iz
u
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amount
of Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment of
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
121
0
0
122
0
0
1231
0
0
124
0
0
125
0
0
126
0
0
127
0
0
128
0
0
129
0
0
130
0
0
131
0
0
132
0
0
133
0
0
134
0
0
135
0
0
136
0
0
137
0
0
138
0
0
139
0
0
140
0
0
141
0
0
142
0
0
143
0
0
144
0
0
145
0
0
146
0
0
147
0
0
148
0
0
149
0
0
150
0
0
TOTALS
I
I
114,985,000
1 3,796,072
1 18,781,0721
5,2001
01
6,503,3011
12,282,971
N
cn
v
0
(D
U)
m
3
LONG TERM DEBT SCHEDULE - LT DEBT6
to
n
0
3
0
v
c0
0
o'
v
c0
0
s
1
n
m
m
D
n
m
m
�J
Q
I I
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amount
of Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment of
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
151
0
0
152
0
0
1531
0
0
154
0
0
155
0
0
156
0
0
157
0
0
158
0
0
159
0
0
160
0
0
161
0
0
162
0
0
163
0
0
164
0
0
165
0
0
166
0
0
167
0
0
168
0
0
169
0
0
170
0
0
171
0
0
172
0
0
173
0
0
174
0
0
175
0
0
176
0
0
177
0
0
178
0
0
179
0
0
180
0
0
TOTALS
I
I
114,985,000
1 3,796,072
1 18,781,0721
5,2001
01
6,503,3011
12,282,971
N
cn
v
0
m
to
rn
m
3
LONG TERM DEBT SCHEDULE - LT DEBT7
to
n
0
3
0
v
c0
0
o'
v
c0
0
s
1
n
m
m
D
n
m
m
�J
Q
I I
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Debt Name
Amount
of Issue
Type of Debt
Obligation
Debt
Resolution
Number
Principal
Due FY
Interest
Due FY
Total
Obligation
Due FY
Bond Reg./
Paying Agent
Fees Due FY
Reductions due to
Refinancing or
Prepayment of
Certified Debt
Paid from Funds
OTHER THAN
Current Year Debt
Service Taxes
Amount Paid
Current Year Debt
Service Levy
181
0
0
182
0
0
1831
0
0
184
0
0
185
0
0
186
0
0
187
0
0
188
0
0
189
0
0
190
0
0
191
0
0
192
0
0
193
0
0
194
0
0
195
0
0
196
0
0
197
0
0
198
0
0
199
0
0
200
0
0
201
0
0
202
0
0
203
0
0
204
0
0
205
0
0
206
0
0
207
0
0
208
0
0
209
0
0
210
0
0
TOTALS
I
I
114,985,000
1 3,796,072
1 18,781,0721
5,2001
01
6,503,3011
12,282,971
N
cn
v
0
m
to
rn
m
3
LONG TERM DEBT SCHEDULE - GRAND TOTALS
N
n
O
3
0
O
v
c00
o'
w
v
cQ
O
s
C
n
m
m
D
n
CL
m
�J
Q
N_
W
GENERAL OBLIGATION BONDS, TIF BONDS, REVENUE BONDS, LOANS, LEASE -PURCHASE PAYMENTS
Principal Due
Interest Due
Total Obligation Due
Bond Reg./ Paying Agent
Reductions due to Refinancing or
Paid from Sources OTHER THAN
Amount Paid Budget Year
FY 2026
FY 2026
FY 2026
Fees Due FY 2026
Prepayment of Certified Debt
Budget Year Debt Service Levy
Debt Service Levy
GO - TOTAL
10,880,000
2,280,578
13,160,578
4,000
0
881,607
12,282,971
NON -
TOTALL
4,105,000
1,515,494
5,620,494
1,200
0
5,621,694
0
GRAND -
TOTAL
14,985,000
3,796,072
18,781,072
5,200
0
6,503,301
12,282,971
N
cn
O
(D
U)
N
lD
3
4/9/25, 8:34 AM
Local Government Property Valuation System
NOTICE OF PUBLIC HEARING -- PROPOSED BUDGET
Fiscal Year July 1, 2025 - June 30, 2026
City of: IOWA CITY
The City Council will conduct a public hearing on the proposed Budget at: 410 E. Washington St., Emma Harvat Hall Meeting Date: 4/15/2025 Meeting
Time: 06:00 PM
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of, any part of the proposed budget. This notice represents a
summary of the supporting detail of revenues and expenditures on file with the City Clerk and County Auditor.
City budgets are subject to protest. If protest petition requirements are met, the State Appeal Board will hold a local hearing. For more information, consult
https:/MornJowa.goy/local-budgetet=aappeals.
The Budget Estimate Summary of proposed receipts and expenditures is shown below. Copies of the the detailed proposed Budget may be obtained or
viewed at the offices of the Mayor, City Clerk, and at the Library.
The estimated Total tax levy rate per $1000 valuation on regular property
15.63305
The estimated tax levy rate per $1000 valuation on Agricultural property is
3.00375
At the public hearing, any resident or taxpayer may present objections to, or arguments in favor of, any part of the proposed budget.
Phone Number City Clerk/Finance Officer's NAM
(319) 356-5041 Kellie Grace
Budget FY 2026
Re -estimated FY 2025
Actual FY 2024
Revenues & Other Financing Sources
Taxes Levied on Property
1
70,579,069
68,821,450
66,212,366
Less: Uncollected Property Taxes -Levy Year
2
0
0
0
Net Current Property Taxes
3
70,579,069
68,821,450
66,212,366
Delinquent Property Taxes
4
0
0
13,185
TIF Revenues
5
4,166,800
4,388,100
4,304,866
Other City Taxes
6
4,734,689
3,576,300
3,822,266
Licenses & Permits
7
2,182,800
2,122,880
3,044,155
Use of Money and Property
8
3,251,300
3,171,385
11,733,188
Intergovernmental
9
55,441,442
57,211,304
39,341,011
Charges for Fees & Service
10
58,013,200
54,475,737
51,697,337
Special Assessments
11
800
2,000
0
Miscellaneous
12
11,522,600
5,764,761
3,454,212
Other Financing Sources
13
14,257,700
49,922,475
12,658,945
Transfers In
14
54,811,177
65,414,310
65,314,522
Total Revenues and Other Sources
15
278,961,577
314,870,702
261,596,053
Expenditures & Other Financing Uses
Public Safety
16
33,296,700
32,281,191
29,663,236
Public Works
17
13,695,700
13,253,200
12,254,943
Health and Social Services
18
684,700
687,576
696,500
Culture and Recreation
19
18,163,300
17,751,560
16,898,654
Community and Economic Development
20
10,874,050
25,779,100
16,722,676
General Government
21
14,375,600
14,516,677
12,627,157
Debt Service
22
14,390,900
13,787,740
13,189,955
Capital Projects
23
37,577,800
74,005,769
20,533,546
Total Government Activities Expenditures
24
143,058,750
192,062,813
122,586,667
Business Type / Enterprises
25
94,945,774
145,081,853
71,617,362
Total ALL Expenditures
26
238,004,524
337,144,666
194,204,029
Transfers Out
27
54,811,177
65,414,310
65,314,522
Total ALL Expenditures/Transfers Out
28
292,815,701
402,558,976
259,518,551
Excess Revenues & Other Sources Over (Under) Expenditures/Transfers Out
29
-13,854,124
-87,688,2741
2,077,502
Beginning Fund Balance July 1
30
151,768,394
239,456,6681
237,379,166
Ending Fund Balance June 30
31
137,914,270
151,768,3941
239,456,668
https://dom-localgov.iowa.gov/budget-renderer?id=21391 20/20
Prepared by: Nicole Davies, Finance Director, 410 E. Washington St., Iowa City, IA 52240; 319-356-5085
Resolution No. 25-94
Resolution adopting the annual budget for the fiscal year ending June
30, 2026.
Whereas, a public hearing on the proposed budget for the fiscal year ending June 30, 2026 was
held on April 15, 2025, at a regularly scheduled City Council meeting and public comments were
received.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The annual budget for the fiscal year ending June 30, 2026, as set forth in the Adoption of
Budget and Certification of Taxes and on the Adopted Budget Summary, together with the
detailed budget in support thereof showing revenue estimates, appropriation expenditures,
and program allocations for said fiscal year should be and hereby is adopted.
2. The City Clerk is hereby directed to make the filings required by law, and to set up the
books in accordance with the summary and details, as adopted.
Passed and approved this 15th day of April , 2025.
1'
Attest: C c t_
City Clerk
It was moved by Moe
adopted, and upon roll call there were:
May
and seconded by
Ayes: Nays:
X
x
X
x
x
Approved by
City Attorney's Bice — 4/10/2025
Alter the Resolution be
Absent:
Alter
Bergus
Harmsen
Moe
Salih
Teague
Weilein
I r i
�► N
� City Council Supplemental Meeting Packet
CITY OF IOWA CITY April 15, 2025
Infromation submitted between distribution of the meeting packet on Thursday and 4:00 pm on
Monday.
Late Handout(s):
1o.e. FY26 Budget Public Hearing: See Council Correspondence from Jay Honohan
& Bill M. Bywater
April 15, 2025 City of Iowa City
Kellie Grace
From: Nroamer <nroamer@aol.com>
Sent: Sunday, April 13, 2025 7:11 PM Late Handouts Distributed
To: *City Council
Subject: Police department
I-14-Z
(Date)
I
RIS1{
** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or
attachments. **
This message is from an external sender.
Mr. Mayor Members of the council I
have forwarded several individual e-
mails to members of the council
regarding my concerns about any
possible reduction in either the
budget or reduction in numbers of
police officers. Did not realize at
the time that I could do just one to
all of you. I respectfully submit
that doing either of them would be a
disservice to our community. Officers
are needed for public safety.
Jay Honohan
2450 Hickory Trail apt 114
Iowa city Iowa 52245
319 530 6175
I
--�t ID, e
WILLIS M. BYWATER
621 SOUTH SUMMIT STREET
IOWA CITY, IOWA 52240-5657
Members of the City Council
City of Iowa City
410 E. Washington St.
Iowa City, IA 52240
Good Morning,
Late Handouts Distributed
(Date)
4/7/2025
Since serving as Scout Fire Chief for the day over 70 years ago, I have had a keen interest
in our city government, a wonderful benefit of that shadowing opportunity. Several years later,
Mayor Mercer of Iowa City and Mayor Anciaux of Coralville were both employees of our
company. I was proud to be associated with them.
More important than my personal history to you is my concern for our city continuing to
fund essential services. For me, public safety leads the list. My strong feeling for this important
funding is expressed despite property taxes on our home, business and investment properties
increased between 10.7% and 18.6% last year.
The Assessment Rolls received last week indicate a continuation of this expensive trend,
valuations up 9.4% to 13.8%. Only my home on Summit Street, where we responded to a fire in
the grocery as Scout Chief, has the assessed valuation decreasing - .267%, at least in the right
direction.
Thanks for allowing me to voice my concern for maintaining safety in our community
during these challenging times.
Sincerely,
Bill Bywater
Item Number: 10.h.
CITY OF IOWA CITY
COUNCIL ACTION REPORT
April 15, 2025
Resolution approving the three-year Financial Plan for the City of Iowa City, Iowa, and the five-
year Capital Improvement Plan.
Prepared By: Nicole Davies, Finance Director
Reviewed By: Geoff Fruin, City Manager
Fiscal Impact: See Background Analysis below.
Staff Recommendation: Approval
Commission Recommendations: N/A
Attachments: Resolution
Executive Summary:
On April 15, 2025, two public hearings are being held: one hearing will be held to take public
input on the proposed amendment of the fiscal year 2025 (FY2025) budget, and one hearing
will be held to take public input on the proposed fiscal year 2026 (FY2026) budget. Following
the first public hearing, a resolution to amend the FY2025 Operating Budget will be
considered. Following the second public hearing, a resolution to adopt the FY2026 Operating
Budget and a resolution to approve the FY2025-2027 Financial Plan and 2025-2029 Capital
Improvement Plan document will be considered. The FY2026 adopted budget must be
certified by the Johnson County Auditor's office by April 30, 2025.
Background / Analysis:
The FY2025-2027 Financial Plan and 2025-2029 Capital Improvement Plan document was
made available to City Council and the general public in January 2025. This document
included the proposed FY2025 amended budget and the proposed FY2026 budget. This
document detailed the proposed and amended budgets as submitted by the City Manager
following an extensive budget process.
The City Council held public work sessions in January and February 2025 to review and
discuss the FY2025-2027 Financial Plan and 2025-2029 Capital Improvement Plan
document. During these budget work sessions, the City Manager and the department
directors presented their budget proposals and responded to questions from the City Council.
The City Council also clarified and refined their budget priorities during these work sessions.
The Resolutions to amend the FY2025 Budget and to adopt the FY2026 Budget and related
schedules represent the programs and details that were included in the FY2025-2027
Financial Plan and 2025-2029 Capital Improvement Plan document. The Resolutions and
related schedules also include any subsequent changes as directed by the City Council as
well as corrections and adjustments identified by City staff. The related schedules for the
FY2025 Amended Budget and the FY2026 Budget were made available to the public on April
1, 2025 and the Notices of Public Hearing for both were published on April 3, 2025, in
accordance with state law to allow for public input.
Financial Impact:
Fiscal Year 2026 Proposed Budget & Fiscal Year 2025 Revised Budget
On January 8, 2025, the FY2025 - 2027 Financial Plan and 2025 - 2029 Capital Improvement
Plan document was delivered to the City Council and made available to the general public.
Since that time, changes and adjustments were made by City staff to the proposed FY2026
budget and the FY2025 revised budget. The changes to the FY2026 budget are summarized
as follows:
Decreased Property Tax Revenue by $76,500, which adjusted revenues, expenditures and
transfers for the following funds:
General Fund - $43,200 reduction to revenues, $15,700 reduction to transfers in & $3,600
reduction to transfers out
Employee Benefits Fund - $14,400 reduction to revenues & $15,700 reduction to transfers
out
Debt Service Fund - $17,400 reduction to revenues
SSMID Fund - $1,500 reduction to revenues and expenditures
Transit Fund - $3,600 reduction to transfers in
Increased Gas & Electric Excise Tax Revenue by $10,400, which adjusted revenue in the
following funds:
General Fund - $10,000 increase to revenues
Employee Benefits Fund - $1,300 reduction to revenues
Debt Service Fund - $1,700 increase to revenues
Increased the transfer out from the General Fund and the transfer in to the Affordable
Housing Fund by $200,000 and also increased the expenditures for the Affordable Housing
Fund by $200,000.
The change to the revised FY2025 budget is summarized as follows:
One correction was made by City staff to the amended FY2025 budget. The correction was
a transfer in of $100,000 to the Capital Projects Fund and a transfer out of $100,000 from the
Road Use Tax Fund for funding that was missed in the initial draft.
The final proposed property tax levy rate for FY2026 is $15.633 per $1,000 of taxable
valuation; this is unchanged from the proposed levy rate presented in January. The FY2026
levy rate is unchanged from Iowa City's FY2025 levy rate of $15.663 per $1,000 of taxable
valuation. From fiscal years 2013 to 2023, the City's property tax levy rate was decreased for
eleven consecutive years by a total of $2.21 or 12.38%. The rate has remained flat since
fiscal year 2023.
Prepared by: Nicole Davies, Finance Director, 410 E. Washington St., Iowa City, IA 52240; 319-356-5085
Resolution No
25-95
Resolution approving the three-year Financial Plan for the City of
Iowa City, Iowa, and the five-year Capital Improvement Plan.
Whereas, the City Council of the City of Iowa City deems it in the public interest and in the interest
of good and efficient government for the City of Iowa City, Iowa, to adopt a three-year Financial
Plan for operations and a five-year Capital Improvement Plan budget; and
Whereas, the three-year Financial Plan and multi -year Capital Improvement Plan are subject to
annual review and revisions; and
Whereas, a public hearing was held on April 15, 2025, at a regularly scheduled City Council
meeting and public comments were received.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City Council of the City of Iowa City does hereby adopt the three-year Financial Plan
for the Fiscal Years 2025 through 2027 and the five-year Capital Improvement Plan 2025 -
2029.
2. This Resolution is an expression of the Council's legislative intent for planning future
operation and capital improvements for the City of Iowa City, Iowa; and the anticipated
means of financing said plan, subject to applicable laws.
Passed and approved this 15th day of April , 2025.
Mayor
Approved by:
c /
Attest: � �, ``.i C �:�. G
City Clerk City Attorney' Office — 04/10/2025
Resolution No. 25-95
Page No. 2
It was moved by Moe , and seconded by Harmsen that the
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Alter
x
Bergus
x
Harmsen
x
Moe
x
Salih
x
Teague
x
Weilein