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Home My WebLink About2002-01-22 Info Packet of 1/17 CITY COUNCIL INFORMATION PACKET ~1 C~'~' January 17, 2002 www.icgov.org [ JANUARY 22 WORK SESSION ITEMS IP1 Memorandum from City Clerk: Work Session of January 22 I JANUARY 29 WORK SESSION ITEMS IP2 Memorandum from City Clerk: FY03 Organizational Budget Request MISCELLANEOUS ITEMS IP3 Memorandum from Council Member Kanner: State Adoption of a Municipal Income Tax Option IP4 Memorandum from Economic Development Coordinator to City Manager: Assessed Values and Property Tax Exemption for the Whiteway Building IP5 Letter to City Manager from Herbert and Marianne Michael: Hickory Heights Rezoning IP6 Memorandum from City Attorney: Hickory Heights: Protest of Rezonings by City Council Due to Ownership of Appurtenant Public Property IP7 Memorandum from First Assistant City Attorney: Juvenile Procedures General Order IP8 Memorandum from City Clerk: Revised 2002 Meeting Schedule (January 21 - March 30) IP9 Memorandum from City Clerk: January 7 Council Work Session IP10 Memorandum from City Clerk: January 10 Council Work Session IPll Memorandum from Planning and Community Development Assistant Director to City Manager: Intersection of Gilbert Street and Court Street IP12 Memorandum from JCCOG Assistant Transportation Planner: Bus Bike Racks IP13 Memorandum from Water Superintendent to City Manager and Public Works Director: Part-Time Permanent Water Clerk Position - FY03 IP14 iowa City Police Department Use of Force Report - November 2001 IP15 Iowa City Police Department Use of Force Report - December 2001 IP16 Minutes: January 9 Joint Meeting IP17 Water Facility Improvements Report #10 [Complete color version available in Clerk's Office] Janua~ 17, 2002 Information Packet /continued) 2 IP18 Email from Carol DeProsse to jcnews@yahoogroups.com; iagp- johnsoncounty@yahoogroups.com; icprogs@yahoogroups.com: ,Jail News IP19 Minutes: October 18 PA'rv IP20 Minutes: November 15 PATV Comprehensive Annual Financial Report (Fiscal Year ended June 30, 2001) Letter from Jim Lenz - Budget Emails from Carol DeProsse: Iowa Policy Project/Invitation, TIF Stuff and Current Drug Information Letter from Lisa Dewey: Johnson County Seats Budget Letter to the Editor info from Joan Jehle: Planning & Zoning Commission meeting Refuse Carts Pilot Program (presented at 1/15/02 Budget Work Session) City of Iowa City MEMORANDUM DATE: January 16, 2002 TO: Mayor and City Council FROM: Marian K. Kart, City Clerk RE: Work Session of January 22 Please note the start time of the January 22 work session has changed to 5:30 pm. Munchies will be provided but no meal is planned. The formal meeting will follow at 7:00. City of Iowa City MEMORANDUM TO: City Council .]~ FROM: Marian K. Karr, City Clerk DATE: January 15, 2002 RE: FY03 Organizational Budget Request The attached letter was sent to the following organizations: Vicki Jennings - Iowa Arts Festival Alice Mathis - Office of VP for Student Services Doris Kobliska - DTA Steve Grismore - Iowa City Jazz Festival Karen Kubby - ADA Celebration Scott Jennings - Iowa City/Coraiville Jaycees Margaret Wieting - JC Historical Society Carolyn Barrientes - Blue Obsidian Hispanic Art Exhibit Ken Richardson - Mormon Trek Heritage Festival David Cooling - U of I Dance Marathon In addition staff of all City Boards and Commissions have been notified as well. We are in receipt of your funding request for the FY03 City budget cycle. The City Council has scheduled a budget work session addressing the FY03 budget requests for Tuesday, January 29, starting at 6:30 p.m. If you would like to address the Council during this work session, please call me at 356-5041 to schedule a time. In order to accommodate everyone interested we are scheduling organizations 15 minutes apart, and suggest each organization appearing include a 10 minute presentation followed by five minutes for questions. Sincerely, Marian K. Karr, CMC/MMC City Clerk Cc: City Council S: organizations budget request.doc 410 EAST WASHINGTON STREET · IOWA CITY, IOWA 52240- 1826 · (319) 356 5000 · FAX (319I 356-5009 5TEVEN KANNER IP3 City Councilmember. Iowa City. Home Address: 630 S. Governor, #3, Iowa City, Iowa 52240 (319)338-8865 To: City Council From: Steven Kanner Date: January 15, 2002 Re: State Adoption of a Municipal Income Tax Option Enclosed is an article from the July, 2001 National League of Cities newsletter regarding the issue of a municipal income tax option. As you will note in the article, a significant number of states across the country allow their municipal governments to enact municipal income taxes. The Iowa League of Cities has as one of its goals for the year to be an exploration into diversifying revenue streams for local governments (as opposed to relying largely on the property tax). I propose that the Iowa City City Council take some time at a work session to explore the possible benefits of a municipal income tax option. If the Council is then so inclined, we could draft a proclamation/resolution in support of this tax option and send it off to the state legislative leadership. Please feel free to call me with any questions or comments. Sincerely, Steven Some Cities Turning to ncome TaxesFor Revenue b)~ ~rocy ¥Ofl las stipulates that everyone mus~ pay a fiat rate. Denver, Colorado 1997 One in an occasional series of and Mukilteo, Wash., use local articles appearing in The Weekly head taxes. Statewide (S) on municipal finance and the Columbus institutes a 2 per- State * ~ Counties Schools Other Income (I) or Head (H) Enumerated work of NLC's Future of Public cent mffnicipal income ~tax, ¢o1- Finance Initiative. .lected by (abe Columbus Income Tax Division. The city is allowed · X I S Property and sales taxes are to levy a 1 percent income.tax by I S familiar revenue sources for state law. The additional I per- many local governments. In the cent was approved by city voters. H E last 20 years, more localities are Maryland counties also have ~ --~I E choosing a less common option- the authority to set the local local taxes on income, incom, e tax rate, but the mecha- I S By 1997, localities .in 15 nism for collection is'different. states had been authorized to While all counties in Maryland X I _ S levy income taxes. Four of these can levy an income tax, the tax is X I J S states - Colorado, Delaware, collected by the state ~v-ith the New York and Washington - state's own income tax revenue. X X I : S restrict (enumerate)the income Olden coiled a piggyback tax, -- X I ~-- ~: tax to specific municipalities.' this mechanism reduces the Some larger cities, including administrativebvxden of collect- I __ S Baltimore, New York City, St. ing the tax at the local level, i X I S Louis, and Kansas City, Mo., have also been granted addition- (~,~ I E al authority from their state leg- X I S islatures to levy local incomes The local income tax raises a · taxes, number of concerns. First is the I S ease of administrating and X H E ~ ~ d [~OIlle ~ enforcing the tax. Piggyback taxes are favored in some locali- - 1~o localities levying income taxes Two types of income tax are ties because they lesson the ~ ~ ~axes on lxansit systems levied by localities. The most aaminiatrative burden of tax col- common type is a graduated tax lection. Localities also need the on earnings. Columbus, Ohio, resources available to enforce ~pecified]ocalities or, l[/. and Baltimore County use this compliance. For example, if ) - Levied on personal income method, which also allows locali- those responsible for paying the - A tax levied on a fiat rate per month __ ties to set the local tax rate. Less a Gu/de to L~ca/Opt/on Ta~, ],997. common is the head tax, which .~e pa~e ~ c~]. ~ Taxes tax are not convinced that there is a percent tax on income,/m incentive may penalty for non-compliance, they might ex/st for taxpayers to move f~om~ne not pay the tax. jurisdiction to another. Another concern is detormlniug wh/ch Despite these concerns, incentives jurisdictions receive revenue from the renminforlocalincometaxes. First~ocal ta~ Many people work in one ciW, but income taxes are usually considerkl to live in another city, resulting in some unpreve the pregresslvlty of the re~enns workers having to pay income taxes in system, placing a larger burden one, ese both cities. Wh/ch munldpa]ity receives w/ti1 higher incomes. This is the person's 'income tax dollars? true when the income tax rs~la~ the The answer varies from locality to sales tax, which is ol~cen though',{ of as l~lity. In Cincinnati, Ohio, a resident of unduly burdening lower income resi- the city who is subject to a murdcipal or denta. For taxpayers, the local income county income tax in another jurisdiddon tax is usually deductib]~e fi'omilfederal is only responsible for paying the higher gross income, reducing their.~'federal of the two taxes. In other instances, peo- income tax burden. plemayhavetopaysomeincemetaxesin Concerns and incentives _su~°,_unding both jurisdictious, the local income tax are part of a broader Differences in local income tax rates discussion underway hs part ~f NLC's may also create competition among juris~ Future of Public Finance Initia~ve, led by dictions, the Murdcipalities in Trausifipn Panel. While a 2.5 percent income tax may The panel will'convene a Forth on the appeal to local officials who have many Future of Pub]/c Financo/n September. · services to provide and few tax dollare, a Kigh income tax rate is less appealing to Next in the series: The Local Income taxpayers. Iftheneighboring~ityhasa2 Tax-ATaleofFourCities City of Iowa City MEMORANDUM To: Steve Atkins, City Manager _~ _~.~ From: David Schoon, Economic Development Coordinator~__..~4.,.~--~¢--'---..~ Re: Assessed Values and Properly Tax Exemption for the Whiteway Building The following table summarizes the change in assessed values for the Whiteway Building site from before the 1999 fire to the January 1, 2001 assessment. When comparing the value of the site after the construction of the new building to the value of the site before the 1999 fire, the value of the site has increased by almost $2.2 million. Whiteway Site Assessed Values Assessed Values Land Value Building Value Total Value January 1, 1999 $255,850 $580,980 $836,830 =riot to Fire) January 1, 2000 $323,000 $30,000 $353,000 'Foundation construction had begun) January 1, 2001 $361,000 $2,667,390 $3,028,390 (Project completed) Value Exempted from Taxation $0 $1,011,560 $1,011,560 (Commercial component) Taxable Value $361,000 $1,655,830 $2,016,830 (Land, residential component, & non- exempt commercial component) Note: The value exempted from taxation is calculated based upon the commercial value added to the site between January 1, 2000 (the base year), and January 1, 2001. Even with the property tax exemption on the commercial component of the project, the taxable value of the properly is almost 2.5 times greater in 2001 than it was in 1999. On its 1999 assessed value, the owner of the Whiteway site paid $27,360 in property taxes (the City's portion was $12,200). The City Assessor has estimated that the owner will pay $66,160 on the taxable portion of the 2001 assessed value (the City's portion will be $29,950). So even with the property tax exemption, the property owner will pay $38,800 more in property taxes than they did on the building prior to the fire ($17,750 of that to the City). In fact, the amount of additional tax they will pay is greater than the amount they will save each year on the exemption. The estimated annual savings of the property tax exemption to the property owner will be $33,180 (the city's portion $15,020). The table on the following page summarizes taxes ~aid and taxes saved. Whiteway Site Taxes Tax - All Levies Tax - City's Levy January 1, 1999 (Priorto Fire) Taxes Paid $27,360 $12,200 January 1, 2001 (Project completed) Taxes to be Paid on Taxable Value $66,160 $29,950 (Land, residential component, & non-exempt commercial component) Taxes to be Saved on Value Exempted from Taxation $33,180 $15,020 (Commercial component) U:\FI LES\TAXE S\Whiteway bldg.doc 915 Fairchild, Iowa City, Iowa 52245 January 10,2002 Mr. Atkins, City Manager / ~~~~ ~ City of Iowa City ~ .~ ~ JAN14 410 East Washington Iowa city, Iowa 52240 C~ MA~AG[R'S Dear Mr. Atkins: Re: Hickory Heights Rezoning It may be a "done deal". But I hope not. The Press Citizen plans to sell 18 aces of the land which they purchased for their site, but which they no longer need. The apparent plan is to sell the plot to a private developer for "upscale housing". While I realize that the fortunate few who would be able to live there, would have a lovely view ..... .... I also realize that those of us who use Hickory Hill Park for recreational purposes would also like an unobstructed view. We need more space. We don't need more houses. Therefore, count my husband and I among those who protest the sale of that plot for private development. Please ask those of us who live near Hickory Hill Park what our preference would be. Believe me, we want more park. Very truly yours, Herbert and Marianne Michael cc. City Council Atten:: Steve Kanner cc. Zoning and Planning City of Iowa City iP6 MEMORANDUM Date:January 16, 2002 To: City Council From:Eleanor M. Dilkes, City Attorney Re: Hickory Heights: Protest of rezonings by City Council due to ownership of appurtenant public property Iowa Code Chapter 414, which establishes City zoning authority and procedures, provides that if "owners of twenty percent (20%) or more of the property which is located within two hundred feet (200') of the exterior boundaries" of a property requesting a zone change file a written protest of such zone change, the zone change shall not become effective except by a favorable vote of at least three-fourths of all members of the council. We often refer to this provision as requiring a "super-majority" (75%), or six (6) out of seven (7) affirmative votes by council members to effect the requested zone change. This provision of the Iowa Code does not exempt public property from the area that may protest a zone change, and it is my opinion that this provision would allow a public body to protest a zone change in certain situations. For instance, if an adjoining City was presented a rezoning application and the City of Iowa City owned property within 200' of the area to be rezoned, the City Council could vote to submit a protest, as it would stand in the shoes of a typical property owner. In the matter at hand, however, the Iowa City City Council stands in the position of the final decision-maker on the rezoning application. Filing an objection on a rezoning application over which the Council has final authority raises a number of what can be broadly characterized as conflict of interest/due process issues. For example, if a majority of the Council votes to submit a protest, the Council will have made a pre-public hearing determination regarding the merits of the application. Moreover, given that Council is the final decision-maker a protest is unnecessary. In essence, a protest of the rezoning by Council would be a decision by four members of the Council that six members must agree to pass the rezoning. If four members can agree to submit a protest on the rezoning application, it is reasonable to conclude that there is not a majority of the council to support the zone change. If the Council does not support the rezoning application, it should make this determination as the final zoning authority in accordance with the law, rather than utilizing a mechanism established to grant adjoining property owners heightened standing by the zoning authority. cc: Steve Atkins, City Manager Marian Karr, City Clerk Sarah Holecek, First Assistant City Attorney Karin Franklin, Director of Planning and Community Development Bob Miklo, Senior Planner Mitch Behr, Assistant City Attorney Emd/memo\hickoryhgts.doc City of Iowa City M MORANDUM Date: January 16, 2001 TO: City Council From: Sarah E. Holecek, First Assistant City Attorne~ Re: Juvenile Procedures General Order Attached please find a copy of the Iowa City Police Department's General Order regarding Juvenile Procedures as referenced in my memo of December 5, 2001 regarding the PCRB's findings in PCRB Report #01-01. At the time of the incident involved in PCRB Report #01-01, there was no general order regarding Juvenile Procedures, though such an order was scheduled to be developed as part of the Department's CALEA certification efforts. Rather, only the general order concerning Search and Seizure was in existence. Please note Section IV, D, VI, on page 5, which specifically addresses procedures for obtaining consent to search from juveniles. This section was developed to address the concerns and comments raised by the PCRB in Report #01-01 and to address the specific issue of juvenile consent to search under the law. cc: Marian Karr, City Clerk Steve Atkins, City Manager Eleanor Dilkes, City Attorney Dale Helling, Assistant City Manager RJ. Winkelhake, Police Chief Matt Johnson, Captain, ICPD sarah\council\O 1-01 juvenile order.mmo JUVENILE PROCEDURES Date of Issue General Order Number NOVEMBER 20, 2001 01-06 Effective Date Section Code NOVEMBER 26, 2001 ePS Reevaluation Date Amends / Cancels JANUARY 2002 NEW I C.A.L.E.A. Reference Chapter 44 INDEX AS: Arrest Investigation Procedures Searches I. PURPOSE The purpose of this policy is to provide guidelines for members of the Iowa City Police Department when dealing with juveniles in enforcement, custody, and child welfare situations. II. POLICY The Iowa City Police Department is committed to the reduction of juvenile delinquency and committed to the development and continuation of programs designed to prevent and control juvenile delinquency. The Departments juvenile function is the equal responsibility of all members, units and functions within the department. It is the responsibility of all members of the Iowa City Police Department to familiarize themselves with juvenile problems and established procedures for handling both criminal and non-criminal juvenile incidents as defined in this policy. Officers should bear in mind that only a small percentage of juveniles commit the majority of juvenilel crimes. While this small percentage may require secure custody, the vast majority of juvenile offenders are likely candidates for non-secure custody and positive diversion and intervention strategies. With this in mind, officers should, when reasonable and ustified under this policy, take those measures necessary to effect positive changes in uvenile offenders that are consistent with state law and the safety and securit nterests of the community. OPS-19.2 III. DEFINITIONS Status Offender: A juvenile who is charged with an offense that would not be a crime if committed by an adult. Responsible Adult: In the absence of a juvenile's parents or legal guardian, a responsible adult is one who is responsible for the physical custody of a juvenile or who is another adult acquaintance of the juvenile's parents or legal guardian who agrees and reasonably demonstrates the ability to provide supervision for the juvenile until parents, guardians or next of kin can assume responsibility. Non-Secure Custody: A condition under which a juvenile's freedom of movement is controlled by members of this agency and, during such time, the juvenile 1. is held in an unlocked, multi-purpose area that is in no way designed for residential use, such as a report writing room or an office; 2. is at no time handcuffed to any stationary object; 3. is held only long enough to complete identification, investigation and processing and then released to a parent, guardian or responsible adult or transferred to a juvenile facility or court; and 4. is under continuous visual supervision until released. Secure Custody: A condition in which a juvenile is physically detained or confined in a locked room, set of rooms or a cell that is designated, set aside or used for the specific purpose of securely detaining persons who are in law enforcement custody or when the juvenile is physically secured to a stationary object. IV. PROCEDURES A. Enforcement Alternatives Officers dealing with juveniles in enforcement capacities may exercise reasonable discretion as outlined in this policy in deciding on appropriate actions. Alternatives that may be considered include, but are not limited to; 1. release without further action; 2. informal counseling to inform the youth of the consequences of his actions; 3. informal referrals to community services; 4. referral to parents or responsible adult; 5. informal counseling of parents or responsible adult; 6. limited non-secure custody and warning at the PD; 7. issuance of summons or complaint; 8. arrest under non-secure custody; and 9. arrest under secure custody. Upon deciding on an appropriate course of action, officers should abide by any notification requirements, consistent with state law and other departmental directives. 0PS-19.3 B. Enforcement Criteria The following general guidelines may be used in determining appropriate enforcement and related actions that may be taken when dealing with juvenile incidents. I. Release without further action following informal counseling may be appropriate in certain minor incidents. II. When in the officers opinion, more than informal counseling needs to occur, the officer may elect to do one or more of the following: Make contact with the juvenile's parent(s), guardian or other responsible adult; make a referal to an appropriate community service agency with or without follow-up; detain the juvenile at the PD until he/she can be released to a parent or guardian. These actions may be appropriate when: A. the incident is of a more serious nature; or B. the attitude conveyed by the juvenile demonstrates a lack of realizing the seriousness of the incident; or C. the juvenile has received prior warning, referrals, or has engaged in previous delinquent acts; or D. the juvenile's parent, guardian or responsible adult fails to provide appropriate control or supervision III. Officers may make a criminal referral when the circumstances surrounding the incident meet or exceed the seriousness mentioned above. Officers should make a criminal referral against juveniles when they commit: A. acts that if committed by an adult would be serious misdemeanor or higher level charge. B. acts involving weapons; C. gang related offenses; D. acts which are assaultive in nature; E. acts committed while on probation or when-they have charges pending against them; F. acts as repeat offenders or when they have refused to participate in diversion or intervention programs; or G. when it has been determined that parental or other adult supervision is' ineffective. .~ When a juvenile is taken into custody,-he/she should be transported to the police department or the detention facility as soon as reasonable practical, after being taken in to custody. IV. An officer may also take a juvenile into custody if the juvenile is in imminent danger' to life or health, seriously endangered or is a runaway, or in violation of an order of disposition. In all such cases these juveniles shall be held in non-secure custody and officers should contact the child's parent(s) or guardian as soon as reasonably possible. When the parent(s) or guardian cannot be contacted or refuse to accept custody, the officer should contact the Youth Shelter for placement. 0PS-19.4 V. In cases of alleged child abuse, first insure the safety of the child(ren) involved. The watch supervisor should be contacted and a determination made as to if an investigator should be called or if the responding officer should make telephonic contact with the Department of Human Services and finish the initial report and forward the report before the end of his/her watch to the investigations section. Copies of all reports shall also be forwarded to the Department of Human Services. Where probable cause exists to support a criminal charge of child abuse, an arrest is justified and the suspect should be taken into custody. If there is insufficient information available at the time to make a determination as to the existence of child abuse, the officer shall, in consultation with the Department of Human Services, take steps to ensure the safety of the child(ren). B. Status Offenses I. Based on the seriousness of and circumstances surrounding the offense, the background and demeanor of the juvenile and other relevant factors, an officer may release a juvenile to his parents, guardian or other responsible adult. Prior to releasing a juvenile to someone pther than the parent, the officer shall make reasonable steps to contact the parents for approval of the release. When the juvenile is released to someone other than a parent, the officer shall identify the person taking custody prior to the release of the juvenile. II. Juveniles taken into custody for status offenses may be frisked for weapons prior to being transported. III. Handcuffs or other restraints will only be used when: the juvenile being taken into custody physically resists; threatens physical violence when being taken into custody; is being taken into custody for an alleged delinquent act of violence against a person; or when in the judgement of the officer, the child presents a risk of injury to the child or others. IV. Officers shall pay particular attention to juveniles under the influence of alcohol 'or drugs to determine whether emergency medical services are warranted. V. Juveniles taken into custody for status offenses shall be held in non-secure custody, for the purposes of identification, investigation, and related processing requirements to facilitate their release to a parent or responsible adult or transport to a juvenile shelter facility. VI. Transportation of a juvenile in a "caged" vehicle is not considered secure custody. VII. Status offenders and other juveniles taken into custody should not be placed in an area with adult suspects and shall also be: 1. under constant observation; 2. afforded reasonable access to toilets and washing facilities; 3. provided with access to water or other nourishment as needed; 4. allowed reasonable access to a telephone. D. Criminal Offenses 0PS-19.5 I. Juveniles taken into custody for criminal type offenses may be placed in restraints if the juvenile physically resists; threatens physical violence when being taken into custody; is being taken into custody for an alleged delinquent act of violence against a person; or when, in the reasonable judgement of the officer, the child presents a risk of injury to the child or others. The parent, guardian, or custodian shall be notified as soon as reasonably possible once a juvenile is taken into custody. II. Unless the child is placed in shelter care or detention, the child shall be released to the child's parent, guardian, custodian, responsible adult relative, or other adult approved by the court. III. Fingerprints and photographs of juveniles shall be taken in conformance with the Code of Iowa chapter 232.148, and shall only be taken for an offense other than a simple misdemeanor. IV. Juveniles in custody should be questioned in conformance with the Departmental Juvenile Waiver form. When practical, juveniles should be allowed to consult with their parent(s). To the extent practical, parents should be allowed to be present during the interrogation of juveniles. Questioning of juveniles should be limited in duration, preferably one hour or less, and questioning limited to two officers. V. Prior to terminating an interrogation, the questioning officer shall advise the juvenile and/or his/her legal guardian or responsible adult of the procedures to be used in making contact with the juvenile court office, in addition to information relating to applicable court appearances or other means of dealing with criminal charges. VI. Officers shall consider the age of the juvenile when requesting consent to search from a juvenile. The requesting officer shall clearly explain the voluntary nature of the consent and the right of the juvenile to refuse the request. Officers should not request consent to search from juveniles appearing to be under the age of twelve. Officers should attempt to contact the person in actual control of the property to be searched prior to initiating the search. When the property to be searched is a residence and the parents or person in actual control of the property is unavailable the officer shall contact the on-duty watch supervisor for advice on how to proceed. When the property to be searched is other than a residence and the juvenile appears to be under the age of fourteen, and the officer is unable to contact the person in actual control of the property to be searched, the officer shall request the on-duty supervisor respond to the scene to determine how to proceed. This section does not apply when the property to be searched is a motor vehicle under the control of the juvenile. E. Reporting I. Officers shall document contacts with juveniles on the Departmental Juvenile Complaint form. The form shall be filled out as completely as possible. Juvenile contacts include but are not limited to: A. when a charge is filed or contemplated, other than the exceptions contained in chapter 232.8 of the Code of Iowa. (cite and release exceptions) OPS-19.6 B. transport of juveniles; C. Field Interview (FI) contacts with juveniles (for juveniles this will be used in lieu of FI cards), in these type situations officers should note on the complaint that it was a FI contact. D. juveniles in the company of others at the proximate time an offense was committed; -. E. other circumstances as determined by watch supervisors or the Report Review Officer. II. Officers shall fill out the Incident Report form consistent with those categories in which one is required for adult suspects. III. On an annual basis_ the Sergeant of Planning and Research shall analyze, evaluate and report on the enforcement and prevention actions taken by the department. The report shall include both a quantitative and qualitative component. The report should contain recommendations for the continuance and/or modification of current departmental efforts and or directives. R. ~. Winkelhake, Chief of Police WARNING This directive is for departmental use only and does not apply in ar~y cric~inaLor civil )roceeding. The department policy should not be construed as a c!;eatjon of ~ higher legal standard of safety or care in an evidentiary sense with re§pect to thir, d~party claims. Violations of this directive will only form the basis fo~-departmental administrative sanctions. : · City of Iowa City MEMORANDUM DATE: January 15, 2002 TO: Mayor and City Council REVISED FROM: Marian K. Karr, City Clerk~['XI'~ RE: 2002 Meeting Schedule (January 21-March 30) Based on Council work session discussion of January 8 the following schedule was agreed upon: January 21 - Martin Luther King City Holiday January 22, 4:00 - Special Work Session (Prior to Formal) January 22, 7:00 PM - Special Formal January 24, 1:30-5:00 PM - Budget Work Session January 29, 8:00 AM-Noon - Budget Work Session January 29, 6:30 PM - Budget/Boards & Commissions, community organizations February 4, 6:30 PM - Work Session February 5, 7:00 PM - Formal February 18 - President's Day City Holiday February 19, 4:00 - Special Work Session (Prior to Formal) February 19, 7:00 PM ~ Formal February 27, 4:00 - Special Work Session February 27, 7:00 PM - Special Formal March 4 - Work Session Cancelled March 5 - Formal Cancelled March 18, 6:30 PM - Work Session (Spring Break Week) March 19, 7:00 PM - Formal Council returns to their regular meeting schedule (first and third Tuesday) in April with the work sessions scheduled on the 1st and 15th and formals on the 2nd and 16th. Council is scheduled to set public heating on the City budget February 5th for their meeting on February 19th. Adoption of the budget is scheduled for the special formal of February 27. All meetings are subject to change. Cc: Department Directors Cable TV Maintenance U:2002 schedule.doc City of Iowa City iP9 MEMORANDUM Date: January 16, 2002 To: Mayor and City Council. From: Marian K. Karr, City Clerk Re: Council Work Session, January 7, 2002, 6:30 PM in Emma J. Harvat Hall Council: Champion, Kanner, Lehman, O'Donnell, Pfab, Vanderhoef, Wilburn Staff: Atkins, Helling, Dilkes, Karr, Davidson, Winkelhake, Boothroy Grosvenor Tapes: 02-02, Both Sides; 02-03, Side 1 (A complete transcription is available in the City Clerk's Office) PLANNING & ZONING ITEMS Asst. PCD Director Davidson presented information on the following items: A. Motion setting a public hearing for January 22 on an ordinance to rezone 95 acres located between Coud Street and Lower West Branch Road from Low Density Single Family, RS-5, and Medium Density Single-Family, RS-8, to Sensitive Areas Overlay. (REZ01-00023/SUB01-00025/Lindemann Subdivision) B. Motion setting a public hearing for January 22 on an ordinance to vacate the nodhern 184 feet of the 20-foot wide alley right-of-way located south of Burlington Street and west of Dubuque Street. (VAC01-00004) C. Motion setting a public hearing for January 22 on an ordinance to vacate a portion of Northgate Drive. (VAC01-00006) D. Motion setting a public hearing for January 22 on a resolution annexing 4.01 acres located south of Herbert Hoover Highway east of Scott Boulevard. (ANN01-00005) E. Motion setting a public hearing for January 22 on an ordinance rezoning 4.01 acres located south of Herbert Hoover Highway east of Scott Boulevard from County Local Commercial, C-1, to Commercial Office, CO-1. (REZ01-00025) F. Ordinance to rezone .63 acres from General Industrial, I-1, to Intensive Commercial, C1-1, located on the south side of Highway 1 West, west of Ruppert Road. (RE01-00021) (Second Consideration) G. Ordinance to vacate West Benton Court north of Benton Street. (VAC01-00003/Oaknoll) (Second Consideration) H. Ordinance to rezone from Medium Density Single Family (RS-8) to Historic Preservation Overlay (RS- 8/OHP) for properties within the Longfellow Neighborhood to establish the Longfellow Historic District. (REZ01-00019) (Pass and Adopt) Council WorkSession January7,2002 Page 2 I. Ordinance to rezone from Medium Density Single Family (RS-8) to Conservation District Overly (RS- 8/OCD) for properties within the Longfellow Neighborhood to establish the Clark Street Conservation District. (REZ01-00019) (Pass and Adopt) J. Ordinance to rezone from Medium Density Single Family (RS-8) to Conservation District Overly (RS- 8/OCD) for properties within the Longfellow Neighborhood to establish the Dearborn Street Conservation District. (REZ01-00019) (Pass and Adopt) K. Ordinance to vacate 11,800 square feet of undeveloped Kirkwood Avenue right-of-way located south of the Church of Christ parking lot at 1320 Kirkwood Avenue. (VAC01-00005) (Pass and Adopt) Staff recommendation was to proceed with the vacation and not dispose of the property at the present time. Davidson stated the property would be vacated for the purposes of a street but would remain public property. L. Ordinance changing the zoning designation of 4.01 acres located east of Harlocke Street from High- Density Multi-Family Residential (RM-44) to Sensitive Areas Overlay-44 (OSA-44). (Pass & Adopt) M. Resolution approving the final plat of Oakes Sixth Addition, a 30.1 l-acre, 18-1ot residential subdivision located at the western terminus of Bristol Avenue. (SUB01-00033) City Attorney Dilkes stated the applicant had requested deferral until January 22. N. Resolution approving the preliminary plat of Stone Bridge Estates, Part 2, a 13.98-acre, 52-1ot residential subdivision located north of Ashford Place, south of Lower West Branch Road (SUB01- 00030) AGENDA ITEMS 1. (Consent Calendar #3f(21) JCCOG Traffic Engineering Planner.....signs for ambulance parking...on the north side of 400 block of Bloomington Street) In response to Council Member Kanner, Asst. PC[:) Director Davidson stated that a request had been received from Mercy Hospital to dedicate two non metered spaces for ambulance parking through the construction of the hospital extension scheduled for December 2003. 2. (Consent Calendar #3f(21) JCCOG Traffic Engineering Planner.....three cab stands....400 block of College Street and Agenda Item # 11 - Resolution...amending parking stand fee...to reflect changes that may be made in the parking fee ordinance) In response to Council Member Pfab, Asst. PCD Director Davidson and City Clerk Kart ~;tated rates are established based on parking fees established by ordinance for the area. Council Member Pfab requested information on what the meter revenue is for a year prior to voting Tuesday evening. Council Member Kanner stated his interest to rent the Wilson's building and retain the spaces for tenant parking. Majority of Council requested a memo from staff summarizing the issues of renting the space. 3. (Consent Calendar #3F(17) Brian Hamilton...delays due to train) Asst. PCD Director Davidson reported that in the past the railroad had made a concerted effort to not block the intersection especially during times elementary school kids were going to school but stated that with changes to the railroad recently there was nothing legally that could be done. Staff Council Work Session January 7, 2002 Page 3 will follow up with Mr. Hamilton and contact the principal at Roosevelt School regarding the issue. 4. (Consent Calendar #3f(23) Petitions....Uptown Bill's small MALL...traffic light at Gilbert/Court) Asst. PCD Director Davidson stated staffwas investigating the request and would report back to Council. 5. (Agenda #8 - Public hearing and resolution approving plans.....Scott Boulevard Extension Phase IV...) City Clerk Karr noted the handout changing the name of the project to Scott Boulevard Extension - ACT to Rochester Avenue. 6. (Agenda #19 - Announcement of vacancies) City Clerk Karr noted the addition of a Planning and Zoning vacancy to the current vacancies being announced, and the change in appointment date and application deadline for Airport, Historic Preservation and Telecommunications to February 13. APPOINTMENTS Airport Zoning Board of Adjustment - Readverfise Animal Care and Adoption Center Advisory Board - Maryann Dennis Board of Adjustment - Eric Gidal Board of Appeals - reappoint Thomas Werderitsch PARKING ON DOWNTOWN PRIVATE PROPERTY (IP3 of 1/3 Information Packet) Asst. PCD Director Davidson present for discussion. Majority of Council were not interested in reconsidering the City's policy with respect to private property in the Central Business District zone and the requirement that parking be provided in public parking facilities and not on privately owned land. STAFF ACTION: None LITERARY WALK EXPANSION Due to the absence of PCD Director Franklin this item will be discussed at another time. SECTION 8/PUBLIC HOUSING ADMINISTRATIVE PLAN UPDATE (Agenda Item #6 and #7) HIS Director Boothroy, Housing Administrator Grosvenor, Section 8 Coordinator Wolf, and Public Housing Coordinator Briggs present for discussion. Majority of Council agreed to proceed. BOTTLE BILL (IP4 of 1/3 Information Packet) After discussion Council requested two changes to the materials presented. Add a statement to the letter "As in the previous year, we continue to support...."; and include "Iowa Environmental Health Association" as source for third whereas in resolution. STAFF ACTION: Prepare for January 22 agenda. (Helling) Council Work Session January 7, 2002 Page 4 SMOKING IN RESTAURANTS ,(Item #12) After discussion a majority of Council agreed to proceed with the ordinance as presented. City Atty. Dilkes requested that the ordinance be amended to include an effective date of March 1 to allow preparation and distribution of affidavits. Council agreed to the amendment. STAFF ACTION: Prepare amendment for distribution at formal meeting January 8. (Dilkes) COUNCIL TIME 1. Council agreed to the following meeting schedule: January 10, 1:30-6:00 PM - Budget Work Session January 15, 3:00-7:00 PM - Budget Work Session January 21 - Martin Luther King City Holiday January 22, 4:00 - Special Work Session (Prior to Formal) January 22, 7:00 PM ~ Special Formal January 24, 1:30-5:00 PM - Budget Work Session January 29, 8:00 AM-Noon - Budget Work Session February 4, 6:30 PM - Work Session February 5, 7:00 PM - Formal February 18 - President's Day City Holiday February 19, 4:00 - Special Work Session (Prior to Formal) February 19, 7:00 PM - Formal February 27, 4:00 - Special Work Session February 27, 7:00 PM - Special Formal March 4 - Work Session Cancelled March 5 - Formal Cancelled March 18, 6:30 PM - Work Session (Spring Break Week) March 19, 7:00 PM - Formal 2. Council Member Kanner noted the material he included in the information packet (IP7 of 1/3 packet) regarding reaching out to the Latino/Hispanic community, and asked that a work session discussion be scheduled regarding City participation in the Latino/a Conference in April 2002. Council requested Human Rights Coordinator Shank provide information and invite John-Paul Chaisson-Cardenas to attend. 3. In response to Council Member Vanderhoef, City Mgr. Atkins stated he would be discussing airport matters on Thursday and said the airport subsidy in this budget more than doubles. He added that Council policy was to build the hangers and the income pay for them, however, that was not occurring and more information would be provided at budget time. 4. In response to Mayor Lehman, City Clerk Karr said she could coordinate sign up of Council Members for the elected official booth at the Chamber Business Fair, or Members may contact Karen at the Chamber office as well. Meeting adjourned 9:00 PM. City of Iowa City iP10 MEMORANDUM Date: January 16, 2002 To: Mayor and City Council From: Marian K. Kart, City Clerk Re: Budget Work Session, January 10, 1:30 PM, Emma J Harvat Hall Staff: Atkins, Helling, Karr, O'Malley, Mansfield, Herting, Fowler, O'Brien Tapes: 02-03, Side Two; 02-06, Both Sides; 02-07, Side One (A complete transcription and materials distributed are available in the City Clerks office) Bud.qet Review City Manager Atkins presented the FY2003-2005 budget review. The City Manager reviewed policies that affect operations and the capital plan; provided a summary of general fund expenditures and revenues; explained how the state's tax rollback is used, debt service tax rates; outlined the no layoff policy that was a principle applied to this budget; and provided details on the landfill assurance policy being proposed. Finance Director O'Malley and Budget Analyst Mansfield available for discussion. Council Members requested the following information: · Overview of lost interest income set off by changes in state regulations - Requested clarification of Services and Charges for Airpod Operations (Budget pg. ~08) · Amount charged against employee benefit levy which helped benefits levy in Public Transit (Budget pg. 7) PENDING ISSUES/FLIP CHART Individual Council Members requested consideration of the following items in the budget process: (YEAR) 03-04-05 Benefits (Health) - package negotiations Attrition Policy Refuse Collection Water Clerk Deer Kill PCRB Clerk Traffic Calming Public Art - matching private $ Budget Work Session Januaw 10,2002 Page 2 Parkin.q System Proposals Parking Director Fowler and Parking Mgr. O'Brien distributed materials outlining their proposals as follows: 1. Change the rates and time limits of meters based on demand, not location. 2. Promote night ramp permit availability 3. Sell more parking permits where space allows while also allowing for the short term parking needs in these facilities. 4. Expand parking meters to include area surrounding Mercy Hospital. After discussion, Council agreed to #1, with the understanding that a daily maximum charge of $4.80 would be instituted at Tower Place facility only and not Capital Street; #2 as presented and requested a report in six months; #3 as presented; #4 contact Ron Reed at Mercy Hospital for input before preceding. BOARDS, COMMISSIONS, ORGANIZATIONS SCHEDULE The City Council agreed to schedule a budget work session addressing the FY03 budget requests for Tuesday, January 29, starting at 6:30 p.m. City of Iowa City MEMORANDUI Date: January 15, 2002 To: Steve Atkins, City Manager From: Jeff Davidson, Asst. Director, Dept. of Planning & Community Deveropment Re: Intersection of Gilbert Street and Court Street You requested that I respond to two letters which have been received from Uptown Bill's Small Mall (copies attached). Individuals representing Uptown Bill's Small Mall have reported a high frequency of collisions at this intersection since their business was established at this location in April 2001. They have asked that the City consider various traffic control options in an attempt to improve the situation. Cur investigation did confirm that there has been an increase in the number of collisions at this intersection. There were five recorded collisions in calendar year 1999, four in 2000, and 15 in 2001. Three of the 15 collisions in 2001 involved personal injury. None were listed as involving pedestrians. This intersection is a difficult one, because the location of buildings at the northwest and southwest corners (including the building where Uptown Bill's Small Mall is located) causes restricted visibility for eastbound motorists desiring to enter Gilbert Street. The restricted visibility causes vehicles to pull into the pedestrian crosswalk in order to see traffic on Gilbert Street. In addition to creating pedestrian-vehicle conflicts, vehicles traveling northbound on Gilbert Street attempting to turn west on Court Street may have difficulty because of eastbound vehicles pulled so far into the intersection. This is especially difficult for bus turning movements. With a relatively high number of pedestrians in this location, it can become congested at times. We are always investigating ways to alleviate the conflicts which occur at locations with a mix of cars, trucks, buses, bicycles, and pedestrians. You will recall our recent project to modify the medians on Washington Street at the Van Buren Street intersection. This project was able to significantly improve safety by making physical changes to improve visibility at the intersection. Unfortunately, at the Gilbert/Court intersection we do not have the option of making physical modifications to the buildings which create the visibility restrictions. There is also the issue of changing traffic dynamics at this intersection. You are aware that the City's Near Southside Neighborhood planning initiative has enabled substantial redevelopment in this vicinity. There are several new residential structures, and we expect new commercial developments, such as the Near Southside Transportation Center, as the area continues to redevelop. I believe it is reasonable for us to examine the Court Street/Gilbert Street intersection to evaluate the installation of a traffic signal. The suggestion of an all-way stop is not appropriate for this location; it would simply replace one type of collision pattern with another, and create congestion that could extend back into adjacent intersections. If there is to be a change in traffic control at the intersection, I believe a traffic signal is the appropriate strategy. The JCCOG Transportation Planning Division can conduct a traffic signal warrant study at this intersection if that is the desire of the City Council. Because of winter weather we would be unable to collect data any earlier than May 2002. It is also unlikely that the Transportation Planning Division would be able to complete the study any sooner than this because of other project commitments. Would you please discuss this matter with the City Council and let us know how you would like us to proceed. cc: Chuck Schmadeke Rick Fosse Karin Franklin Beth Pfohl Richard Twohy, Uptown Bill's Small Mall jccogadm/mem/cou rtgilbed.doc Bill Sackter Foundation International, Inc. Extend the Dream Foundation, Inc. UPTOWN BILL'S small MRLL 401 S. Gil,b, ert St.. Iowa City IA 52240 Te[ephonc: 339-0401 · Fax: 339-0426 <bookstor(o~inav.net> "Where al~ our shops are run by people with disabilities' OWNERS' COUNCIL City Councilors of Iowa City January 2, 2002 Ernie Lehman, Mayor Mike O'Donnell, Mayor Pro Tem Connie Champion Steven Kanner Irvin Pfab Ross Wilburn Dee Vanderhoef City Hall 400 Washington St., Iowa City IA 52240 RE: Traffic Light at Gilbert and Court Street This morning, at I0:00 am, marks at least the seventh injury/traffic collision (in the eight months we've been counting), at the intersection of Gilbert and Court Streets. Today's incident could have been much worse - and deeply diminished our whole community - since one of the injured was Ron Clark who needs to stay healthy to keep the Riverside Theatre running. As people living with brain injuries and/or other physical and mental disabilities, we business operators are especially vulnerable when we try to navigate this street corner on foot, or crutches, or in wheel chairs and other vehicles. Enclosed is a copy of our letter of December 19th to City Manager Steve Atkins. It's understandable that he hasn't had time yet to respond. However, the danger that we confront, and the rising list of injuries, isn't waiting for him - or for us. Uptown Bill's is still an experiment -- helping people with disabilities to create new jobs and to serve rather than "being served." We wouldn't even exist, except for this Council's decision to give us a chance. It will become a great example to other cities across the country, if we do it right. We need your further help now, to do it safely. oC~T~ toth~s ~ttreen~tbs.~ put °n the fr°nt burner? -Perhaps starting wi?_~a Painted cr°sswalk ~/~Enclosure: Our letter of December 19, 2001 cc: Hon. Steve Atkins, Iowa City Manager ~/~ ~/~,~ Mr. Ron Clark,, 1429 Glendale Roadoiowa City 52245 Bill Sackter Foundation International, Inc, Extend the Dream Foundation, Inc. OWNERS' COUNCIL 4o~ s. Gilbert Street Iowa City, IA 52240 Voice: 319-339-040] FAX: 319-339-0426 <bookstorEwinav.net> December 19, 2001 Hon. Steve Atkins City Manager City of Iowa Ci~ 400 Washington Street Iowa City, IA 52240 RE: Traffic Light at Gilbe~ and Cou~ ~eet First, a major Thank You for the help &om Iowa Ci~ in getting us up and m~ng at Uptown Bill's small Mall. Without your help - and a boost from so many donors and people of vision here in Iowa City, we would still be straggling at the drawing board. Because of your faith in our Dream, and in the Reality of people with disabilities creating new jobs and serving rather than "being se~ed", we have a ~ance to enlarge our own lives and set an example for communities all across America. However, we and fellow-ci tizens are in danger here at Uptown Bill's small Mall. Since we first started hammering and renewing the premises in Ap~l, 2001, there have been three automobile/car collisions and three bicycle/car collisions here at the corner of Gilbert Street and Court Street. It is a ve~ dangerous intersection. Would you please consider installation of a traffic-control light, so d~vem and pedestrians can negotiate t~s corner with greater safe~? At the very least, for the immediate future, there should be a stop-sign with a painted cross-walk covering Gilbert Street as well as Court Street ~ w~le the more-expensive installation is considered through the decision process. We would much appreciate your advice, also, as to whom we should contact besides the Ci~ Manager's office, to pursue t~s important idea before the next inju~ and accident. Sincerely yours, CCO[ ITl O ITl O Date: January 3, 2002 To: Iowa City City Council Coralville City Council From: John Yapp, Assistant Transportation Planner ~,/V/~ Re: Bus bike racks Recently, we have received questions about how often the bus bike racks are being used. The bus bike racks were mounted on the fronts of Iowa City Transit and Coralville Transit buses in fall 2001. Each rack can hold up to two bicycles at one time. In the months of October and the first week of November, Iowa City Transit buses carried an average of eight bicycles per day, and a range of two to fifteen bicycles per day. Coralville Transit has not kept records of bus bike rack usage, but Coralville Transit Manager Fisher estimates four to six bicycles per day are carried on Coralville buses. According to Iowa City Transit Manager Logsden, bus drivers have reported that the bus bike racks are easier to drive with than they anticipated, and have not caused delay in the bus routes. Users of the bus bike racks have also reported that the racks are easy to use, and will accept almost any size bicycle. I anticipate that the use of the bus bike racks will increase next year, as bicyclists become more aware of the conveniences the bus bike racks can create in moving around the metropolitan area. cc: Steve Atkins Kelly Hayworth jccogadm/mem/jy-busbikeracks doc Date: January 15, 2002 From: Ed Moreno To: Chuck Schmadeke/Steve Atkins Re: Part-time Permanent Water Clerk Position - FY 2003 Per your request, I am writing to clarify the function and need for the above position. This position will serve Iowa City water customers by assisting with answering phones, performing general office duty, performing data conversion and assisting with the administrative activities of Division projects. The position is timed with the start-up of the new water treatment plant. Due to the changes of our functioning in this new space, this position will help cover the reception area of the administration building. It wiI1 assist us to continue to offer quality customer service, to answer water customer questions regarding shutoffs & turn ons, emergencies, and water quality concerns for more extended hours. In addition, this position will assist the Water office to perform administrative support for the Water Plant, Water Distribution, Water Customer Service, Water Administration, Public Works, and Treasury. Projects include digitization (data conversion) of manual records such as meter history cards, stop box measurements, hydrant books, and other Water Division data conversion that is in manual format. This position will also assist with the Backflow, meter change- out, and Iowa One-Call programs. Increased workload, our commitment to provide excellent customer service, and efficient functioning at the new water treatment plant, make this staff request important in this budget cycle. IOWA CITY POLICE DEPARTMENT ~ / ~ USE OF FORCE REPORT NOVEMBER 2001 ~ OFFICER DATE CASE # INCIDENT FORCE USED 49 11-1-01 10162 Fight in progress Officers were in the process of arresting an individual for fighting when a female interfered by attempting to free the subject. Wae officer pushed the female back out of the way and she again interfered by grabbing the officer. Female was then directed to the ground next to the male and both were handcuffed. 49 11-1-01 10167 Arrest Related to the above case. Subject was informed he was under arrest and pulled away from the officer and resisted and refused to submit to handcuffing. Officers directed subject to the ground to hold him while another officer was able to handcuff. 38 11-3-01 10256 Unknown problem at Subject was being detained pending an Sports Column Bar investigation but attempted to leave the area several times after repeatedly being told not too. Subject then placed under arrest and officer used hands on techniques to handcuff. Subject then refused to get into the patrol vehicle. Subject was exposed to chemical agent to gain compliance. 20 1 l-4-01 10290 Arrest Subject was being examined for intoxication after causing a problem at the Union Bar. Subject attempted to walk away from officers. Officer attempted hands on to detain subject but was met with resistance. Officer then directed subject to the ground to control subject. 49,33 11-4~01 10300 Mental subject Subject pulled the fire alarm at the parking ramp for no reason. Officer approached the individual and the subject charged at the officer flailing his arms. Officer used hands on techniques to fight off the arrack and eventually took subject to the ground. During this time a second officer arrived and exposed the subject to chemical agent. OFFICER DATE CASE # INCIDENT FORCE USED 19 11-5-01 10352 Traffic stop A felony traffic stop was initiated when information was received that the vehicle was stolen. Officer drew his sidearm when approaching the vehicle. 58,21,42 11-6-01 10401 Warrant service Officers were serving a warrant and made contact with the suspect at the residence. Subject attempted to flee the area and officers used hands on techniques to take subject into custody. 46 11-6-01 10402 Towing a vehicle Subject was upset about his vehicle being impounded. Subject was placed under arrest for Interference and refused to comply with officer's orders. Hands on techniques were met with resistance and chemical agent was deployed to gain compliance. 14,20 11-9-0I 10499 Arrest When subject was advised she was under arrest she started to walk away. Officer attempted to stop the subject by taking hold of her arm. Subject actively resisted and officers used hands on to take into custody. 85 11-10-01 10510 Fight in progress The other participant threw subject to the ground as officer arrived. Officer then held this subject on the ground until second officer arrived to handcuff. 85,14,20 11-10-01 10515 Arrest Subject was found attempting to pull a chained bike from a bike rack. Subject was arrested for intoxication and resisted arrest. Subject was directed to the ground to gain control. Subject then had to be physically placed in the patrol car. 19 11-12-01 10571 Traffic Stop Officer initiated a traffic stop and driver ran from the vehicle. Officer caught up to the subject who straggled and would not comply with verbal commands. Officer unable to control without directing subject to the ground to handcuff. 59 11-15-01 10664 Animal Officer dispatched injured deer that was found in the roadway using sidearm. OFFICER DATE CASE # INCIDENT FORCE USED 16,43 11-15-01 10693 Domestic assault Officers were checking for a subject wanted for felony assault in the victim's apartment. Officers drew their sidearms and located subject hiding. 33,18 11-16-01 10706 Possession of a Subject ran from officers and was Controlled Substance apprehended. Subject continued to resist and was directed to the ground to gain control and be handcuffed. 59 11-16-01 10713 Arrest Subject had been placed under arrest and was verbally abusive and uncooperative. Subject became aggressive in the elevator at the jail and was restrained against the wall until deputies could assist. 11 11-17-0l 10759 Arrest Subject was taken into custody and refused to submit to handcuffing. Officer used hands on and then was forced to direct subject to the ground to gain control. Upon walking to the patrol car, subject continued to resist by kicking and pulling away from the officer. Subject then exposed to chemical agent. 20 11-17-01 10763 Open container of Officer stopped subject for open alcohol container of beer and subject fled. Officer caught subject by grabbing his shoulder. Officer used hands on techniques to handcuff. 26 11-21-01 10930 Arrest Subject being escorted into the jail and spit in officer's face. After turning subject over to Deputies they later called for assistance and officers used hands on, and pressure points to control subject who was then strapped to a chair. 49 11-22-01 10967 Alcohol violation Officer was conducting an investigation when subject walked away from the area. Officer instructed subject to stay but they began running. Officer caught the individual by grabbing hold of subject's clothing and spinning around to the ground. Subject then obeyed officer's commands and was handcuffed without further incident. OFFICER DATE CASE # INCIDENT FORCE USED 58 11-27-01 11106 Suspicious vehicle Subject got out of the vehicle and appeared ready to nm. Officer ordered subject back inside the vehicle and had to guide him. Subject then refused to place both hands on the steering wheel for officer's personal safety. Subject then removed from the truck and handcuffed. 58 11-27-01 11114 Warrant service Officer ordered subject to place hands behind his back. Subject instead reached for something lying nearby and officer used hands on techniques to effect handcuff'mg. 13 11-28-01 11118 Traffic Stop The driver of a vehicle was arrested for OWl. A passenger became agitated and was arrested for disorderly conduct. The officer used hands on to subdue subject and place in the patrol car. Subject began banging his head against the windows and kicking the doors. Officer then exposed subject to chemical agent. 58,18 11-29-01 11170 Juvenile problem Parents requesting assistance with son who was acting out with violent behavior. Officer used hands on to subdue the juvenile and forced to the ground to gain control and handcuff. Juvenile transported to the hospital for a psychological evaluation. While at the hospital juvenile acted out again and several officers and staffused hands on to control and keep from hurting himself. The juvenile was then strapped to a gurney. CC: City Manager, Chief, Captains, Lieutenants, Training Sergeant, City Clerk, Library IOWA CITY POLICE DEPARTMENT ~ ~ USE OF FORCE REPORT December 2001 OFFICER DATE CASE # INCIDENT FORCE USED 59 12-I-01 11227 Arrest Subject was arrested for OWl and being processed at the police department. At the conclusion subject refused to follow verbal commands to move. Officer then attempted to guide the subject and ;vas met with physical resistance. Subject was restrained against a wall and handcuffed. 93,59,36,11,33 12-2-01 11286 Armed mental subject 9I 1 cai1 of distraught subject who had fired a gun inside the residence. Upon arrival door to residence was open and officers secured the perimeter with drawn sidarms. Subject later located in the yard and officers ordered subject to the ground with sidearms drawn and handcuffed without incident. 8 12-3-01 11317 Animal Officer dispatched injured deer with sidearm. 23 12-6-01 11424 Arrest Subject placed under arrest and refused to follow verbal commands. Subject was lying down and refused to move. Officer used hands on which was met with physical resistance. Upon handcuffing compliance was obtained. 58,18 12~6-01 11430 Mental subject Officers had received information on a missing / endangered person. Subject was located driving a vehicle and officers initiated a traffic stop. As officers approached subject grabbed a knife. Officer drew his sidearm and ordered subject to drop the knife, which he did. The vehicle doors were locked and the officer then broke out the window with his ASP and secured the knife. Officers used hands on to remove the subject from the vehicle and handcuff. Subject involuntarily connnitted at the hospital. 14,60 12-7-01 11479 Fight in progress Subject was placed under arrest and refused to follow verbal commands. Officers used hands on to initiate handcuffing and subject physically OFFICER DATE CASE # INCIDENT FORCE USED resisted. Officers pinned subject against patrol vehicle to gain control and handcuff. 82,17 12-8-01 11494 Arrest Subject was done with processing at the police department and officer needed to handcuff for transport to the county jail. Subject refused to be handcuffed and fought with officers. Subject was directed to the floor to gain control and handcuff. 36 12-8-01 11497 Loud party Subject was placed under arrest and refused to submit to handcuffing. Subject physically resisted and subject was pressed against the wall to handcuff. Subject then refused to get into the police vehicle and officer used hands on to place subject inside. 22 12-13-01 11695 Animal Officer dispatched injured deer with sidearm. 25, 12-13-01 11699 Arrest Subject physically resisted arrest, officer used hand on techniques. 33,13,96 12-14-01 11717 Arrest Subject was placed under arrest for OWI. Subject became passively resistive and fell limp to the ground. Officers then carried subject. Officers attempted the application of pressure points that had no effect. 45,47,93 12-16-01 11818 Arrest Subject actively and physically resisted being arrested and handcuffed. Officers used hands on techniques. 36 12-21-01 11945 Arrest Subject stopped for OW1 investigation. Subject passively resisted by not getting out of the vehicle and tried to close the car door striking officer's leg. Subject then attempted to put car in gear to drive away. Officer turned off the car and used hands on controls to pull subject from the vehicle. 33,24,93 12-27-01 12082 Traffic stop Subject was placed under arrest for OWl. Subject physically resisted and began fighting the officer. Officer initiated hands on and also deployed chemical agent. OFFICER DATE CASE # INCIDENT FORCE USED 15,25 12-27-01 12090 Mental subject Officers attempted to arrest a subject and were met with resistance by two other individuals who blocked the officer's path. Officer's pushed subjects out of the way and also exposed them to chemical agent. Officers then used hands on to effect arrests. 14 12-29-0I 12133 Arrest Subject was about to be placed under arrest for intoxication when they fled. Officers told subject to stop several times and had to be chased and caught by officers. Officer pulled the subject to the ground by their clothing. Subject continued to physically resist handcuffing and officer used hands on techniques to accomplish this. 18 12-29-01 12159 Animal Officer dispatched injured deer with sidearm. 43,13,55 12-31-01 12190 Domestic Assault Officers called to investigate a domestic fight. Subject taken into custody but refused to submit to handcuffing and resisted officers. Officers used hands on to effect the arrest. Subject then had to be carried to the police vehicle. CC: City Manager, Chief, Captains, Lieutenants, Training Sergeant, City Clerk, Library 0.1/11/02 15:37 '1~319 339 6890 I.C, SCHOOLS .~_ loint Meeting Iotmson County Board of Supervisors/ City County of Iowa City/City Council of Coralville/ Iowa City Commurdty School District School Board Wednesday, lanuary 9, 2002 School Administrative Offices 4:00 PM 'School Board President Lauren Reece called the meeting to order at 4:00 PM and welcomed those present. School Boundaries/Educational Opportunit/es - Director Reece, Iowa City Community School Board Director Reece stated that the district is in need of additional space· The reasons for the needed additional space are: 1. A shift in enrollment from the east side to the west side. 2. Added programs have u~l~zed space in the district, such as all-day kindergarten. 3. The special needs program population is growing which is requiring additional space· Director Reece stated the Board is presently working on ~utting together a proposed plan that they intend to approve on January 29 . Director Reece stated .that although the plan is still "work in progress" the following items are being considered for inclusion in the Plan: A. Construction of a new elementary building in North Liberty B. Additions and improvements yo elementary schools C. A new boundary system that would be more flexible, (i.e. a duster school concept) D. Expanding the alternative school. E. Renovating and expanding City and West High Schools · F. Move majority of the Hills secondary students from Northwest/West to South East/City Iowa City Councilmember Wilbum thanked the Board for the attention given to the alternative school. Supervisor Terry Neuz/l as}ed if the Board had developed a timeline. Director Reece stated the Board is looking'at perhaps a bond issue this fall. iowa City Councilmember Champion stated she thinks it is very positive that the Board is looking at something that w/Il affect both Coralville and North Liberty. 01/11/02 i$:38 ~319 339 6890 I.C. SCHOOLS ~003/004 Page 2 ~oint Meeting 1-9-02 Tax Increment Financing (TIF) Director Reece stated that this was placed on the agenda prior to a time that a decision had been made by the City of Coralville to expand their Tax Increment Financing district. Each governmental entity shared their concerns regarding the recent decision made by the City o£ Coralville to expand the Tax Increment Financing district. Coralville Mayor Jim Fausett stated that Coralville, City of Iowa City and North Liberty are all using Tax Increment Financing. Mayor Fausett stated that Coralville is using TIF exactly as prescribed by law. Mayor Fausett stated the merging of the two TIF's does not extend the 2017 date. Mayor Fausett stated the Council would look at Lhe PPEL funding each year to determine if the money is needed. If the funds are not needed to pay off the debt, they will not ask Iowa City Community School District for reimbursement. Iowa City Mayor Lehman stated the root of the concern is a perception issue. It was perceived that the TIF was for the mall and was to finance that particular 'project, expansion was not anticipated. Kelly Hayworth, Coralville City Manager, stated the Council would review where they are at beginning in 2006. If there are excess revenues, the City of Coralville can make one of three derisions: 1. Retire the bonds earlier 2. Give back to taxing entities 3. Do additional TIF projects Tom Slockett, ~ohnson County Auditor, stated he feels there has been a misrepresentation and does not believe it is appropriate to take funds intended for one purpose and apply them to another project. Mr. Slockett stated he feels is it necessary to keep talking about this because this should not happen in the future. Creating tax exempt property creates real losses to the Coanty. Director Franker stated because the decision has already been wade by Coralville, it is time to move on- Coralville has been a good partner and looks forward to ways we can continue to cooperate. lail l_Ipdate Iowa City Cotmcilraember Kanner stated the Iowa City Council would like to put into place a collaborative process for talking about the jail, perhaps develop study groups. 01/11/02 1§:38 ~319 339 6890 I,C. SCHOOLS ~004/004 Page 3 Joint Meeting 1-9-02 Iowa City Mayor Lehman stated the jail, project is dearly a County project but wanted the County to know that the City of Iowa City is willing to participate and help in way that they can. Supervisor Thompson stated she is waiting for a list of issues from the City of Iowa City's manager Steve Atkin~. City Manager Steve Atkins stated he had compiled a list of issues and sent them to the supervisors. Mr. Atkins stated he would send another copy to Ms. Thompson. Director Goocllaxson stated he supports study groups to look at this issue. Supervisor Sally Stutsman introduced Mike Sullivan, the newly appointed executive assistant for the Johnson County Board of Supervisors. Iowa'City Councilmember Kanner stated that Councilmember Champion wanted the group to note tha~ Iowa City is in the midst of a franchise agreement with Mid America and would like to invite others to join in on their discussions. The City of Iowa City will host the next ~oint meeting, April 10~ at 4:00 PM. Meeting adjourned 6:00 PM. DEPARTMENT OF PUBLIC WORKS -- Engineering Division Marian Karr From: Carol DeProsse [cdeprosse@earthlink.net] Sent: Thursday, January 10, 2002 10:52 PM To: jcnews@yahoogroups.com; iagp-johnsoncounty@yahoogroups.com; icprogs@yahoogroups.com Cc: jpwhite@co.johnson.ia.us; cthompso@co.johnson.ia.us; mlehman@co.johnson.ia.us; sstutsma@co.johnson.ia.us; pharney@co.johnson.ia.us; tneuzil@co.johnson.ia.us; carolt@inav.net; Connie_Champion@iowa-city.org; Ross_Wilburn@iowa-city.org; Dee_Vanderhoef@iowa-city.org; Steve_Atkins@iowa-city.org; Marian_Karr@iowa-city.org; Jim Fausett; Harry HenNig; John Weihe; Dave Jacoby; Jean Schnake; Tom Gill Subject: [jcnews] Jail News Both Sylvia Lewis and Stephen Gerard have agreed to sentence first time OW1 offenders to spend their two day jail requirement in a local hotel or motel. Since it is not possible, apparently, at this time to get this designated as an alternate jail facility there is the corresponding requirement to wear electronic monitoring. The county has -- or some entity has -- provided the funds so that 35 people at a time can be on electronic monitoring. This is a significant jump from the previous 6 - 8 monitors available in the past. A small step in working on alternatives to building a 255-bed, $22 million new jail facility on the outskirts of town. Now if we could get an alternate booking facility for PI's, personal users of marijuana, and other petty crimes, so they would not have to go to the jail to be booked and await release we would be making even more progress. Does anyone know if the county is still considering a booking fee? Anyway, it appears as though the county, through the efforts of Carol Thompson and Pat Harney, the two local judges, and the jail staff, are making progress to address alternatives. Stay posted. There is another meeting on the 29th of January of the "Jail Committee". Still not sure if the public is welcome, but I don't think the public would be asked to leave as happened in the past. ........................ Yahoo! Groups Sponsor ........................ FREE COLLEGE MONEY CLICK HERE to search 600,000 scholarships! http://us.click.yahoo.com/vf6MrB/4m7CAA/ySSFAA/kjOolB/TM ...................................................................... To unsubscribe from this group, send an email to: jcnews-unsubscribe@yahoogroups.com Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ IP19 PATV Board Meeting of October 18, 2001 Present: Tom NothnagJe, Mike Petersen, Phil Phillips, Michael Bell and John Carhofl. 7:18 Phillips called the meeting to order. Approved September 20 minutes - Clancy motioned, Nothnagle 2® NO PUBLIC ANNOUNCEMENTS BOARD ANNOUNCEMENTS: Carhoff announced that "Education Exchange Live" will be a new show on PATV and that the school superintendent and School Board approve. OLD BUSINESS: Ren~ has signed checks for $58,000 for the new building renovation. Electricians and drywallers will be done this week. Upper level renovation will be done by October 31. FUNDRAISING: Letters have been sent to potential benefactors. Silent Art Auction on October 27t~. Possible grand opening in December. Clancy mentioned that breakig down prices for specific items may help in fundraising efforts for the new building. Examples: front door, tempered glass window, automatic door opener. Nothnagle suggested a musical show at Adagio Restaurant. Paris will donate proceeds of seasonal photography shoot. BOARD RECRUITMENT: Jack Fuller has an application. NEW BUSINESS - DIRECTOR EVALUATION: Clancy motioned: the annual budget can be amended pending the annual Director's evaluation. Nothnagle 2'~'~. Motion passed. 2002 BUDGET: Financial Committee - Nothnagle moved to approve budget for fiscal year 2002. 2nd by Bell. Motion passed. REPORTS: ICTC - none Treasurer - none Management - Ren~: Silent Ad Auction October 27; ICTC meeting Monday the 22'¢;; Live & Local candidates discussion Oct 29th; Mediacom was not forthcoming with financial support for a van at this time; Annual meeting will be November 15th, Board meets at 6 pm; Homecoming parade went well; Iowa Shares video distribution is statewide. ADJOURNED: 9;12 pm Submitted by Sing Luong IP20 PATV Board Meeting 11/15/01 Minutes Members present: Mike Petersen, John Carhoff, Phil Phillips, Sing Luong, Tom Nothnagle, Michael Bell, Warren Paris Meeting called to order at 6:23 Old Business: Board positions: John moved to reappoint Tom Nothnagle to the board, seconded by Petersen. All present voted in favor. There were no new candidates to recommend for appointment to the board. There were also no candidates for recommendation for election at the annual meeting. Director Evaluation: Phil shared data and comments from the staff; producers, and executive committee evaluations. Staff evaluations ranged fi'om 4 -4.5, executive committee ranged from 3.66 - 5, and the producers ranged from4.66 - 5. We will discuss the evaluation and director's raise at the December meeting. Adjournment: Tom moved for adjournment at 6:33. COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2001 PREPARED BY: DEPARTMENT OF FINANCE CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2001 Page INTRODUCTORY SECTION Table of contents ....................................................................................................................................... 1 Listing of City officials ............................................................................................................................. 3 Organizational chart .................................................................................................................................. 4 Letter of transmittal .................................................................................................................................. 5 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting .......................................................................... 15 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT ............................................................................................... 17 GENERAL PURPOSE FINANCIAL STATEMENTS Combined balance sheet, all fund types and account groups ............................................................. 20 Combined statement of revenues, expenditures and changes in fund balances, all governmental fund types and expendable trust funds ...................................... 26 Combined statement of revenues, expenditures/expenses and operating transfers, non-GAAP basis - budget and actual, all budgeted funds ............................. 28 Combined statement of revenues, expenses and changes in total equity, all proprietary fund types .................................................................................................... 33 Combined statement of cash flows, all proprietary fund types .......................................................... 34 Notes to financial statements ............................................................................................................... 36 COMBINING FINANCIAL STATEMENTS AND OTHER SUPPLEMENTAL INFORMATION Special Revenue Funds Combining balance sheet ................................................................................................................ 62 Combining statement of revenues, expenditures and changes in fund balances (deficit) ........................................................................................................... 63 Capital Projects Funds Combining balance sheet ................................................................................................................ 66 Combining statement of revenues, expenditures and changes in fund balances (deficits) .......................................................................................................... 67 Enterprise Funds Combining balance sheet ................................................................................................................ 70 Combining statement of revenues, expenses and changes in total equity ............................................................................................................................. 72 Combining statement of cash flows ............................................................................................... 74 Internal Service Funds Combining balance sheet ................................................................................................................ 78 Combining statement of revenues, expenses and changes in total equity ............................................................................................................................. 79 Combining statement of cash flows ............................................................................................... 80 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2001 Page Trust and Agency Funds Combining balance sheet, all trust and agency funds .................................................................... 82 Statement of changes in assets and liabilities ................................................................................ 83 Other supplemental information Summary of bonded indebtedness, debt service requirements to maturity (including interest) .................................................................................................. 86 STATISTICAL SECTION {Unaudited) General governmental expenditures by function and transfers to other funds ....................................... 88 General governmental revenues by source and transfers from other funds ............................................ 90 Property tax budgets and collections ........................................................................................................ 92 Property tax rates and tax dollars budgeted ............................................................................................. 93 Property tax, road use tax and hotel/motel tax revenues ......................................................................... 94 Assessed and estimated actual value of taxable property and exempt property ..................................... 95 Property tax rates, all direct and overlapping governments ..................................................................... 96 Principal taxpayers and employers ........................................................................................................... 97 Special assessment collections ................................................................................................................. 98 Ratio of net general obligation bonded debt to assessed value and net bonded debt per capita ............................................................................................................ 99 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures ................................................................................ 100 Computation of direct and overlapping debt ............................................................................................ 101 Schedule of revenue bond coverage ......................................................................................................... 102 Demographic statistics .............................................................................................................................. 103 Property value, building permits and bank deposits ................................................................................ 104 Parking rates .............................................................................................................................................. 106 Schedule of liability and property insurance in force .............................................................................. 107 Miscellaneous statistical data ................................................................................................................... 108 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2001 ELECTED OFFICIALS Term Expires Mayor Ernie Lehman January 1, 2002 Council Member Connie Champion January 1, 2002 Council Member Steven Kanner January 1, 2004 Council Member and Mayor Pro tem Mike O'Donnell January 1, 2002 Council Member Irvin Pfab January I, 2004 Council Member Dee Vanderhoef January 1, 2004 Council Member Ross Wilburn January l, 2004 APPOINTED OFFICIALS Date of Hire City Manager Stephen J. Atkins July 20, 1986 City Clerk Marian K. Kan' May 21, 1979 City Attorney Eleanor Dilkes March 18, 1996 DEPARTMENT DIRECTORS Assistant City Manager Dale E. Helling August 16, 1975 Director of Housing and Inspection Services Douglas W. Boothroy September 22, 1975 Library Director Susan Craig July 28, 1975 Director of Planning & Community Development Karin Franklin May 19, 1980 Director of Parking and Transit Joseph Fowler January 2, 1970 Senior Center Coordinator Linda Kopping March 20, 1995 Airport Manager Ronald J. O'Neil February 4, 1985 Fire Chief Andrew Rocca July 14, 1978 Director of Public Works Charles J. Schmadeke July 5, 1966 Parks and Recreation Director Terry G. Trueblood February 18, 1986 Chief of Police R.J. Winkelhake June 12, 1989 Director of Finance Kevin O'Malley August 19, 1985 Key Citizens of Iowa City Mayor City I~y City Council CITY OF I0 WA CITY November 16, 2001 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa The Comprehensive Annual Financial Report of the City of Iowa City, Iowa (the "City") for the fiscal year ended June 30, 2001 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the City. I believe the information, as presented, is accurate in all material respects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, as measured by the financial activities of its various funds, and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. To facilitate the understanding of the City's financial affairs, this report is organized into three sections: introductory, financial and statistical. The introductory section contains the table of contents, listing of City officials, an organizational chart and this letter of transmittal. The financial section contains the independent auditors' report, the general purpose financial statements, the notes to the financial statements and the combining and individual fund financial statements. The statistical section contains comprehensive statistical data that is intended to provide a broader and more complete understanding of the financial and economic trends of the City. Chapter 11 of the Code of Iowa requires an annual audit of the financial condition and transactions of the City. This requirement has been complied with and the independent auditors' report is included in this report. It must be emphasized that this opinion includes ali fund types and account groups of the City and the results of all the fund types operations and cash flows of its proprietary fund types for the year ended June 30, 2001. In the opinion of our auditors, the financial statements are presented fairly and are in conformity with accounting principles generally accepted in the United States of America. The Reporting Entity and City Services A basis for preparing this financial report for the City was the identification of the reporting entity. Various potential component units were evaluated to determine whether they should be reported in the City's financial report. A component unit was considered to be a part of the City's reporting entity when it was concluded that the City was financially accountable for the entity or the nature and significance of the relationship between the City and the entity was such that exclusion would cause the City's financial statements to be misleading or incomplete. There were no component units required to be included. The financial statements and schedules of the City include the financial activities resulting from the provision of services through the City's 14 basic departments that are under the control of the City Council: Administration Housing & Inspection Planning & Community Airport serVices Development City Attorney Library Police City Clerk Parking & Mass Public Works Finance Transportation Senior Center Fire Parks & Recreation This report does not include financial statements of the Iowa City Community School District or the Iowa City Conference Board which governs the City Assessor's Office, as they are administered by independent and autonomous Boards and are not legally a part of the City or subject to control by the City Council. Economic Condition and Outlook The City's economic strength is based upon education, medical services and diversified manufacturing. The University of Iowa is the City's largest employer with over 24,000 employees and The University of Iowa Hospitals and Clinics is the largest university-owned teaching medical center in the United States. The stability of the University of Iowa, coupled with the City's sound base of industrial and commercial interests, will continue to help shield the City from the negative economic impacts of inflation and unemployment. The City also has a significant number of private employers who have a history of providing stable and increasing employment in the community. The City continues to see sustained production in our major local industries. Continued economic development efforts involving the Iowa City and Coralville Chambers of Commerce, local private interests, the University of Iowa and other surrounding communities through participation as members of the Iowa City Area Development Group, are positive. In addition, the corridor between the City and Cedar Rapids has been identified as one of the major growth areas for new business development in the state of Iowa. Continued developments in that area have shown a favorable impact upon the City's economy. Although there are budget challenges facing the University of Iowa and The University of Iowa Hospitals and Clinics, the City's economy as a whole continues to grow. Other major employers have maintained their workforce size. For the first six months of 2001, the unemployment rate for Johnson County continued to remain low at between 1.8% and 2.4%. This compares to 1.6% and 2.0% for the same time period in 2000. The City has consistently experienced modest increases in assessed property valuations. New housing continues to be relatively strong with 209 new single-family houses added to the tax rolls for the fiscal year ended June 30, 1999, 181 in 2000 and 191 in 2001. This, along with the low unemployment rate, continues to be indicative of the City's economic well being. A special census was performed in August 1996 and the population increased to 60,148 compared to the 1990 census of 59,738. The 2000 census population was 62,220. In preparing the financial plan for the three-years ending June 30, 2004, the process of budget balancing has again been most difficult. With the continued tax limitations imposed by the state (specifically the residential rollback factor) and other federal and state regulations and mandates, the municipal service needs for our growing community are becoming increasingly difficult to satisfy. In balancing the budget for the three-year period, the City attempted to maintain service levels, wherever practical. In addition, our planning has been directed at maintaining our current fiscal strength and avoiding any erosion of that fiscal position, including the City's Aaa bond rating. A continuing major objective in the three-year financial plan is to maintain or increase the City's cash reserve position. In addition, procedures were adopted to allocate unreserved fund balances between the 6 contingency and undesignated fund balances. The contingency fund is available during the fiscal year for unanticipated and nnbudgeted expenditures, while the undesignated fund balance is intended to be maintained as working capital. The City is committed to drawing from the undesignated fund balance only in emergency situations. This unreserved fund balance allocation along with specific budgeting techniques has allowed the City to increase or maintain fund balances over the past year. The City continues to pursue cooperative efforts with other local governments. Joint funding, purchasing, planning and other efforts allow the City to meet mandates for new and improved services in the future at the most reasonable cost. Joint cooperation currently encompasses regional transportation planning, human services, solid waste management planning, a hazardous materials response program, an enhanced 911 emergency communications system, community relations, education on drug and alcohol abuse, joint operation of an animal control facility, joint operation of an indoor swinnmng pool facility and joint economic development efforts. While such cooperative efforts are not new in concept, the City expects to enter into more agreements with neighboring governmental subdivisions, as well as with the University of lowa. There are many signs that the City remains healthy and vibrant with great promise for the future. The University of Iowa College of Medicine has begun a $100 million five-year plan to integrate the overall health science campus. The City continues to see sustained production in the major local industries. Industrial and commercial interests within the community have continued to thrive. The City will be challenged during the next couple of years to maintain its vitality through greater economic development efforts, fiscal restraint in local government and continued cooperation among local government officials. We are confident that the City is positioning itself to better meet the needs of the community in the future through more effective long-term financial planning, and increased financial strength and stability of the City. 7he City Council and its staff are committed to managing the City's destiny well into the future. Major Initiatives A new water treatment facility and improvements to the existing distribution system are in progress. Construction for a new treatment facility totaling $26.9 million was started in 2000 and will be operational in 2002. The City Council set water rates at the following percentages to finance capital improvements. Water user fees were increased by 35%, 30%, 20%, 15%, 15% and 10% on March 1, 1995, 1996, 1997, 1998, August 1, 1999 and 2000, respectively. A hazardous waste recycling center totaling approximately $1.2 million was completed in fiscal year 2001. The hazardous waste center was financed from landfill revenues. A multi-phase wastewater treatment project was started in fiscal year 1996 to comply with federal regula- tions. Phase I to connect the existing two treatment plants is complete. Phase 1I includes new wastewater mains that service the far west and east sides of the City. Phase III is the construction of a new wastewater treatment plant adjacent to the existing south plant that totals approximately $26.5 million and was started in 2000 and will be operational in 2002. The City Council set wastewater rates at the following percentages to finance capital improvements. Wastewater user fees were increased 35%, 15%, 10%, I0%, I0%, 5% and 5% on March 1, 1995, 1996, 1997, 1998, August 1, 1999, 2000 and 2001, respectively. The Iowa City Municipal Airport is in the process of upgrading their master plan. The estimated cost of $10 million will be phased in over the next three years. The City is anticipating receiving 90% federal funding and 10% local funding for this project. The City continues to be proactive on maintaining and building its streets, bridges, stormwater mains and trail systems and spent approximately $8.9 million in fiscal year 2001 on various projects. 7 The Library Board of Trustees proposed expansion of its existing facility has been pushed back to fiscal year 2001. Preliminary studies were completed during fiscal year 1996. It is anticipated that the project could cost as much as $18.4 million. Voters approved the project on November 7, 2000. Project design and property acquisition occurred in FY 2001 and construction should begin in early calendar year 2002. The Iowa City Housing Authority provides rental assistance for 1086 units, with an annual contribution contract with the Federal Government of $7 million. Community Development Block Grant and HOME Investment Partnership funds totaling approximately $1.8 million were utilized for economic development, housing, public sermces and facilities and planning activities during fiscal year 2001. Financial Information, Management and Control A detailed understanding of the financial position and operating results of the City is provided in the Comprehensive Annual Financial Report. Presented below is a brief description of financial information, management of financial resources and obligations, and control techniques applicable to financial resources, obligations, and information. The basis of accounting used deterrmnes when revenues and expenditures are recognized in the accounts and reported in the financial statements. All governmental funds and expendable trust fimds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned. In developing and evaluating the City's accounting control system, consideration is given to the adequacy of intemaI accounting controls. Accounting control comprises the plan of organization and the procedures and records concerned with the safeguarding of assets and the reliability of financial records and consequently are designed to provide reasonable assurance that transactions are executed in accordance with management's general or specific authorization; transactions are recorded as necessary (1) to permit preparation of financial statements in conformity with accounting principles generally accepted in the United States of America or any other criteria, such as finance-related legal and contractual compliance requirements applicable to such statements, and (2) to maintain accountability for assets; access to assets is permitted only in accordance with management's authorization; and the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The definition of accounting control encompasses reasonable, but not absolute, assurance that the objec- tives expressed in it will be accomplished by the system. The concept of reasonable assurance recog- nizes that the cost of internal control should not exceed the benefits expected to be derived. The benefits consist of reductions in the risk of failing to achieve objectives implicit in the definition of accounting control. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Single Audit: As a recipient of federal financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management. The results of the City's single audit for the fiscal year ended June 30, 2001 provided no instances of material weaknesses in the internal controls or significant violations of applicable laws and regulations based upon the audit of the general purpose financial statements. 8 Budget: The City adopts a three-year financial plan that includes both operations and capital improvements. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated program level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. Encumbrances outstanding at year- end for the governmental fund types are reflected as reservations of the fund balances. Appropriations that are not encumbered lapse at the end of the year. Retirement Plans: With the exception of police and fire employees, substantially all permanent City employees are covered by the Iowa Public Employees Retirement System CIPERS"). The state annually sets the contribution rate for all municipal entities and covered employees. All covered employees are required to contribute 3.7% of their salary, while employers contribute 5.75%. There is no allocation or measurement of unfunded liability to any municipal entity m~d, upon the retirement of employees, the 1PERS has the sole responsibility for their benefits. The City has no responsibility to pay employee pension benefits of IPERS besides the required contribution. The City's police and fire employees are covered by the Municipal Fire and Police Retirement System of Iowa CMFPRSI"). This statewide system is a cost-sharing multiple-employer public employee retirement system. The state annually sets the contribution rate for all municipal entities and employees. The City has no responsibility to pay employee pension benefits of MFPRSI besides the required contribution. Comparative information concerning the contributions made to the 1PERS and MFPRSI for the year ended June 30, 2001 is as follows: IPERS MFPRSI Employees' contributions $ 703,462 $ 528,433 Employer's cont~butions 1,093,218 960,787 Covered payroll 19,012,479 5,651,688 Number of employees 602 130 Contributions as a percentage of active member payroll: City 5.75% 17.00% Employees 3.70% 9.35% The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operation of each fund is accounted for by a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and, as applicable, expenditures and expenses. The individual funds account for the governmental resources allocated to them for the purpose of can2ang on specific activities in accordance with special regulations, restrictions, or limitations. The funds used by the City are grouped into three broad fund types and seven generic funds as follows: Governmental funds: Governmental funds are used to account for the programs and activities of the governmental functions of the City. General Fund: The General Fund serves as the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds: Special Revenue Funds account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Fund: The Debt Service Fund accounts for the resources devoted to the payment of interest and principal on long-term capital obligation debt other than tbose payable from specific governmental funds and enterprise funds. Capital Projects Funds: Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by enterprise funds). Proprietary Funds: Proprietary Funds account for ongoing organization and activities that are similar to those found in the private sector. Enterprise Funds: Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs (expenses, including amortization and depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds: Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental units, on a cost reimbursement basis. Fiduciary Funds: Fiduciary Funds account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations and other governmental units and funds. Trust andAgency Funds: Trust and Agency Funds account for assets held by the Expendable Trust Funds and Agency Funds. Account Groups: In addition to the seven generic funds described above, the City uses account groups to establish accounting control and accountability for the City's general fixed assets and general long-term capital debt. q[l~e two account groups are described below: General Fixed Assets Account Group: The General Fixed Assets Account Group accounts for all fixed assets of the City other than those accounted for in proprietary funds and certain other fiduciary funds. General Long-Term Debt Account Group: The General Long-Term Debt Account Group accounts for all long-term debt of the City except debt accounted for in specific governmental funds and proprietary funds. General Governmental Financial Analysis: Revenue and transfers from other funds for general governmental functions (General Fund, Special Revenue Funds and Debt Service Fund) totaled $53,609,000 for the year ended June 30, 2001, an increase of 10.4% over 2000. Property taxes and intergovernmental revenue accounted for $27,071,000 or 50.5% and $11,793,000 or 22.0%, respectively, of the total. Property taxes increased by $2,800,000 or 11.5% over 2000 due to an increase in taxes received for debt service payments and gas and electric taxes received. Intergovernmental revenue increased $2,635,000 or 28.8% due to an increase in revenue from other governments for construction project reimbursements and an increase in grants receivable. Use of money and property increased by $182,000 or 20.3% due to an increase in interest income for all funds. 10 A comparative summary of the general governmental revenue and transfers from other funds is as follows: Percent Increase Percent of (Decrease) of Increase 2001 Total From 2000 (Decrease) (in thousands) (in thousands) Property taxes $ 27,071 50.5 % $ 2,800 11.5 % Licenses and permits 689 1.3 (18) (2.5) Intergovernmental revenue 11,793 22.0 2,635 28.8 Charges for services 2,895 5.4 45 1.6 Use of money and property 1,080 2.0 182 20.3 Miscellaneous 2,175 4.1 (68) (3.0) Transfers from other funds 7,906 14.7 (515) (6.1) Total $ 53,609 100.0 % $ 5,06~1 10.4 % Expenditures and transfers to other funds for general governmental functions (General Fund, Special Revenue Funds and Debt Service Fund) totaled $53,898,000 for the year ended Jmae 30, 2001, an increase of $1,171,000, or 2.2% over 2000. Home and Community Environment expenditures increased by $1,319,000 or 21.4% due to construction expenses that were reimbursed by the University of Iowa and an increase in land acquisition by the special revenue fund, Community Development Block Grant. Capital outlay decreased 54.1% or $1,597,000 over 2000 due to a decrease in interfund loans for construction projects. Debt service principal payments increased $623,000 or 21.4% over 2000 due to the first principal payment of $705,000 on a bond issued in July 2000. Debt service interest payments increased $403,000 or 29.6% over 2000 due to the first interest payments on a bond issued in FY 2001. A comparative summary of general governmental expenditures and transfers to other funds is as follows: Percent Increase Percent of (Decrease) of Increase 2001 Total From 2000 (Decrease) (in thousands) (in thousands) Ctarent operating: Conanumtyprotection $ 12,337 22.9 % $ 252 2.1% Human development 8,268 15.3 503 6.5 Home and community environment 7,471 13.8 1,319 21.4 Policy and administration 5,752 10.7 154 2.8 Capital outlay 1,357 2.5 (1,597) (54.1) Debt service: Principal 3,541 6.6 623 21.4 Interest 1,763 3.3 403 29.6 Transfers to other funds 13,409 24.9 (486) (3.5) Total $ 53,898 100.0 % $ 1,171 2.2 % Enterprise Funds: The City has eight enterprise funds. Enterprise funds operate primarily from user charges for services. ~l~e Wastewater Treatment Fund increased its fees 5% for billings on or after August 1, 2001. The Mass Transportation and Airport Funds operations continue to be subsidized by transfers of property tax revenues from the General Fund, with these transfers representing 62% and 90% of these funds' total revenue, respectively. ll Debt Administration: The ratio of net general obligation bonded debt to assessed valuation and the amount of net tax supported debt per capita are useful indicators of the City's debt position to management, citizens and investors. These statistics for the City as of June 30, 2001 were as follows: Ratio of Net Tax Net Tax Supported Supported Debt to Assessed Debt Per Amount Value Capita Net tax supported debt $46,203,000 $15.82: $1,000 $743 Outstanding general obligation bonds as of June 30, 2001 totaled $61,565,000 of which $1,731,837 issued for wastewater treatment improvements will be funded by the Wastewater Trealment Fund, $11,455,821 is- sued for water improvements will be funded by the Water Fund, $1,680,000 issued for parking ramp con- struction will be funded by the Parking Fund and $494,000 is available in the Debt Service Fund. Tables in the statistical section of this report present more detailed information about the debt of the City. 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 carry- ing the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. as of June 30, 2001 were as follows: General obligation bonds Aaa Parking revenue bonds A Wastewater treatment revenue bonds A Water revenue bonds A Capital Projects Funds: During the fiscal year ended June 30, 2001, $15,229,000 was expended for capital projects, of which $5,742,970 was capitalized in the General Fixed Assets Account Group. The remainder was not capitalized according to the City's policy of not capitalizing infrastructure fixed assets and expensing individual assets with a cost of less than $5,000. General Fixed Assets: The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and exclude the property and equipment of the proprietary funds. As of June 30, 2001, the general fixed assets of the City amounted to $46,128,473 as compared to $48,208,267 as of June 30, 2000. This amount represents the original cost of the assets and is considerably less than their present value and replacement cost. The City follows a policy of not capitalizing infrastructure fixed assets, such as streets, bridges, lighting systems, sidewalks and storm sewers, as well as expensing individual assets with a cost of less than $5,000. Depreciation is not recorded for general fixed assets. Cash Management: The majority of the City's investment activity is carried on by the City's investment pool except for those funds which are required to maintain their investments separately. This pooled con- cept provides for greater investment earnings that am then allocated to the City's funds on a systematic ba- sis. The intention of the cash management system is to limit the amount of funds placed in accounts where low or no interest is paid. Idle cash is invested in various instruments with various maturity dates of less than one year, depending on the anticipated cash requirements during the period. The overall strategy of holding deposits and making investments is to expose the City to a minimum amount of credit risk and market risk. All bank balances of deposits as of the balance sheet date are entirely insured or collateralized with securities held by the City or by its agent in the City's name. 12 For the year ended June 30, 2001, the City earned $6,747,000 from all investments, an increase of $1,303,000 from the prior year. The following table shows how this was allocated by fund type for the fis- cal years 2001 and 2000: 2001 2000 Investment Investment Fund Type Earnings Earnings (in thousands) (in thousands) Governmental $1,487 $1,117 Proprietary 5,260 4,327 Totals $6,747 $5.444 Risk Management: The City is exposed to a variety of accidental losses and has established a risk management strategy that attempts to minimize losses and the carrying cost of insurance. Risk control techniques have been established to reasonably ensure that the City's employees are aware of their responsibilities regarding loss exposures related to their duties. In a similar manner, risk control tech- niques have been established to reduce possible losses to property owned by or under the control of the City. Furthermore, supervisory personnel are held responsible for monitoring risk control techniques on an op- erational basis. The City completed its twelfth full year under a property and liability insurance program that provides for a $50,000 self-insured retention per occurrence on property losses and a $100,000 self- insured retention per occurrence on liability and workers' compensation losses, with an annual aggregate retention of $250,000 on property losses and $l,000,000 on liability and workers' compensation losses. The insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maxi- mum of $10,000,000 annual aggregate of losses paid. The operating funds pay annual premiums to the Loss Reserve Fund, which is accounted for as an internal service fund. The balance in the Loss Reserve Fund is available to cover the self-insured retention amounts and any uninsured losses. The total assets in the Loss Reserve Fund as of Jnne 30, 2001 were $4,981,000. Independent Audit: Chapter 11 of the Code of Iowa requires an annual audit to be performed. The independent public accounting firm of Eide Bailly LLP was selected by the City. In addition to meeting the requirements set forth in Chapter 11, the audit also was designed to meet the requirements of the Single Audit Act of 1996 and related OMB Circular A-133. The independent auditors' report on the general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report. The independent auditors' reports related specifically to the single audit have been separately provided to the City and are not included herein. The financial statements are the responsibility of the City. The responsibility of the certified public accountants is to express an opinion on the City's financial statements based on their audit. An audit is conducted in accordance with auditing standards generally accepted in the United States of America. Those standards require that the audit be planned and performed in a manner to obtain a reasonable assurance as to whether the financial statements are free of material misstatement. Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting (the "Certificate") to the City of Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2000. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting pnnciples generally accepted in the United States of America and applicable legal requirements. 13 The Certificate is valid for a period of one year only. The City has received the Certificate for the last sixteen consecutive years. I believe our current report continues to conform to the Certificate requirements and am submitting it to ISFOA to determine its eligibility for another certificate. Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2001. The City Council, as required by law, is responsible for the complete and accurate preparation of the City's Comprehensive Annual Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds and account groups of the City. The preparation of this report on a timely basis could not have been accomplished ~vithout the efficient and dedicated serVices of the entire staff of the City's Finance Department. I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the City's Assistant Finance Director, Erin Herting, Assistant Controller, Regina Schreiber and Senior Accountant, Ann Maurer. In addition, I commend Sara Sproule, Senior Accountant, Treasury, for her work with cash, investments and interest income. 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, Kevin O Malley ~' Director of Finance 14 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Iowa City For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2000 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAF-Rs) achieve the highest standards in government accounting and financial reporting. 15 16 EideBailly,,,, INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited the accompanying general purpose financial statements of the City of Iowa City, Iowa, as of and for the year ended June 30, 200l, as listed in the table of contents. These general purpose financial statements are the responsibility of the management of the City of Iowa City, Iowa. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United Slates of America; Chapter I l of the Code of Iowa; and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards and provisions require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis. evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Iowa City, Iowa, as of June 30, 2001, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report, under separate cover, dated November 16, 2001, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements, schedules, and other supplemental information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Iowa City, Iowa. Such information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 3999 PennsflvamaAve ° State lO0 · Ihdmquc, l,,wa 52002.2039 · 5635561790 ° Fax 563 5577842 Offices m Arizona, Iowa, Minnesota, 5-{mmm~l N~,rth Dak~,t,~ ami South Dakota ° Equal Opportunity Employer 17 The statistical section listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Iowa City, Iowa. Such additional information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and accordingly we express no opinion on it. Dubuque, Iowa November 16. 2001 18 19 CITY OF IOWA CITY, IOWA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS Jnne 30, 2001 (amounts expressed in thousands) Governmental Fund Types Assets and Special Debt Capital Other Debits General Revenue Service Projects Duc from other 20 Fiduciary Proprietary Fund Types Fund Types Account Groupa General General Totals Internal Trust and Fixed Long-Term (Memorandum Enterprise Service Agency Assets Debt Only) $ 2 $ $ $ $ $ 4 36,559 5,876 272 55,338 28,527 3,544 44 4,949 1,440 88 4 1,836 1,099 5,361 3,052 5,490 730 25 2,229 405 153 558 28,154 3,469 44,466 16,838 45 7,576 24,459 67,615 627 23,999 92,241 90,727 50 2,272 93,049 16,080 9,156 8,542 33,778 (54,525) (5,309) (59,834) 78,187 302 3,739 82,228 494 494 47,204 47,204 $ 289,907 $ 14,501 $ 301 $ 46,128 $ 47,698 $ 462,377 (continued) 21 CITY OF IOWA CITY, IOWA COMBENED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2001 (mounts expressed in thousands) (continued) Governmental Fund ~l~[~es Liabilities, Equity and Other Special Debt Capital Credits General Revenue Service Projects Liabilities: Accounts payable $ 312 $ 357 $ $ 218 payable 49 1,933 22 Fiduciary Proprietar~ Fund Types Fund Types Account Groups General General Totals Internal Trust and Fixed Long-Term (Memorandum Enterprise Servic~e A~enc~ Assets Debt Only) $ 404 $ 248 $ $ $ $ 1,539 5,372 7,354 8,624 1,450 14 1,00l 11,930 2,461 61 5,490 79 79 267 267 432 33,925 3,316 3,316 473 794 124,906 46,697 171,603 146,067 1,759 281 47,698 236,297 (contmued) 23 CITY OF IOWA CITY, IOWA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2001 (amounts expressed in thousands) (concluded) Governmental Fund Types Liabilities, Equity and Other Special Debt Capital Credits General Revenue Service Projects Total li~blilities forwarded $ 22,712 $ 8,933 $ 5,563 $ 3,284 Equity and other Investment in general fixed Contributed capital Retained earnings: Reaerved by bond ordinance Reserved by State statute Reserved by grant agreement Reae~ved for f~Wre claims Fund balances (deficit): Reaerved for: receivables 2,438 24 Fiduciary Proprietary Fund T~pes Fund Types Account Groups General General Totals Internal Trust and Fixed Long-Term (Memorandum Enterprise Service Agency Assets Debt Only) 146,067 $ 1,759 $ 281 $ $ 47,698 $ 236,297 - - 46,128 46,128 47,153 3,127 ~ - 50,280 17,050 - - 17,050 200 - - 200 1,082 - - - 1,082 - 3,469 3,469 78,355 6,146 - - 84,501 19,515 2,438 3,313 ~ 20 20 - 82 829 (2,827) 143,840 12,742 20 46,128 226,080 $ 289,907 :~ 14, 57~1 $ 301 $ 46,128 -- $ 47,698 $ 462,377 See accompanying notes. 25 CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS Year ended June 30, 2001 (araounts expressed in thousands) Governmental Special General Revenue PropeI~ taxes $ 17,475 $ 4,078 Licenses and permits 689 Intergovernmental 5,192 6,601 Charges for services 2,799 96 Use ofmaney and property 595 407 Miscellaneous 1,951 224 Total revenues 28,701 11,406 Expenditures Current operating: Community protection 12,337 Human development 8,268 Home and community enviromant 5,316 2,155 Policy and administration 5,493 259 Capital outlay 1,318 39 Debt service: Principal Interest Total expenditures 32,732 2,453 Excess (deficiency) of revenues over (under) expenditmes (4,031) 8,953 Other Financing Sources (Uses) Operating transfers: From other funds 7,896 (To) other funds (3,461) (9,948) Bond proceeds Total other financing sources (uses) 4,435 (9,948) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 404 (995) Fund Balances (deficit), Beginning (as restated) 8,463 6,189 Fund Balances (deficit), Ending $ 8,867 $ 5,194 26 Fiduciary Fund Types Fund Type Totals Debt Capital Expendable (Memorandum Service Projects Trust only) $ 5,518 $ $ $ 27,071 689 1 ~093 197 13,083 3 2,898 78 407 1,487 222 2,397 5,596 1,725 197 47,625 12,337 8,268 474 7,945 5,752 15,229 16,586 3,541 3,541 1,763 1,763 5,304 15,229 474 56,192 292 (13,504) (277) (8,567) 10 10,782 277 18,965 (9,633) (23,042) 25,523 25,523 10 26,672 277 21,446 302 13,168 12,879 192 (4,373) 20 10,491 $ 494 $ 8,795 $ 20 $ 23,370 See accompanying notes. 27 CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUES, EXPENDITURES/EXPENSES AND OPERATING TRANSFERS, NON-GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED FUNDS Year ended June 30, 2001 (amounts expressed in ~housands) General Fund Operating transfers (to) other funds (4,227) (3,953) 274 28 Special Revenue Funds Debt Service Fund Favorable Favorab{e Bud~e~ Actual (Unfavorable) -- Budget Actual (Unfavorable) $ 4,029 $ 3,969 $ (60) $ 5448 $ 5,387 $ (61) 6,986 6,639 (347) 39 41 2 90 2 (88) 111 207 96 78 78 180 383 203 11,396 11,200 (196~ 5¢487 5,506 19 29 (29) 278 376 (98) 888 1,173 (285) 2,159 2,078 81 6,597 6,100 497 234 216 18 10 128 018/ 2,393 2,323 70 7?73 7,777 (4) 1,109 736 (373) 2,422 2,441 19 (11,954) (10,562) 1,392 (18) (23) (5) (10,845) (9,826) 1,019 2~404 2,469 65 (1,842) (949) $ 893 $ 118 198 $ 80 (46) 104 $ (995) $ 302 29 CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUES, EXPENDITURES/EXPENSES AND OPERATING TRANSFERS, NON-GAAP BASIS BUDGET AND ACTUAL ALL BUDGETED FUNDS (continued) Year anded June 30, 2001 (amounts expressed in thousands) Capital Prelects Funds 30 Expendable Trust Fund Enterprise Funds Variance Variance Favorable Favorable 9,482 6,421 (3,061) 202 198 (4) 1,059 2,510 1,451 203 199 (4) 43,622 43,426 (196) 501 483 18 95,694 86,539 9,155 156 __ (155) 501 483 18 95,69~ 86,694 9,000 301 277 (24) 77,933 56,682 (21,251) (75,056) 09,752) 35,304 50,782 g4,782 (26,000) 301 277 (24) 53,659 41,712 (I 1,947~ $ 3 (7) $ (10) $ 1,58~7~ (1,556) $ (3,143) 7 17,546 $ $ 15,990 31 CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUES, EXPENDITURES/EXPENSES AND OPERATING TRANSFERS, NON-GAAp BASIS BUDGET AND ACTUAL ALL BUDGETED FUNDS (concluded) year ended June 30, 2001 (amounts expressed in thousands) Total~ (Memorandum Only) 32 CITY OF IOWA CITY, IOWA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN TOTAL EQUITY ALL PROPRIETARY FUND TYPES Year ended June 30, 2001 (amounts expressed in thousands) Totals Internal (Memorandum Enterprise Service only) Operating Revenues Charges for services $ 29,655 $ 6,688 $ 36,343 Miscellaneous 2,183 992 3,175 Total operating revenues 31,838 7,680 39,518 Operating Expenses Personal services 8,631 1,135 9,766 Commodities 1,600 1,077 2,677 Services and charges 12,858 5,537 18,395 23,089 7,749 30,838 Depreciation 5,157 996 6,153 Total operating expenses 28,246 8,745 36,991 Operating income (loss) 3,592 (1,065) 2,527 Nonoperating Revenues (Expenses) Gain on sale of equipment 486 486 Operating grants 6,081 6,081 Interest income 4,606 654 5,260 Interest expense (4,500) (4,500) Income (loss) ~efore capital comributions and operating transfers 10,265 (411) 9,854 Capital contributions 1,632 1,632 Transfers in 4,566 405 4,971 Transfers out (473) (422) (895) Total capital contributions and operating transfers 5,725 (17) 5,708 Net income (loss) 15,990 (428) 15,562 Depreciation on assets acquired by contributed capital that reduces contributed capital 314 314 Total Equity, Beginning (as restated) 127,966 12,932 140,898 Residual equity transfers in (out) (129) (19) (148) Capital contributed from Govermnent 32 257 289 Disposition and reduction of contributed capital assets (333) (333) Total Equity, Ending $ 143,840 $ 12,742 $ 156,582 33 CITY OF IOWA CITY,IOWA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES Year ended June 30, 2001 (amounts expressed in '~housands) Totals Internal (Memorandum Enterprise Service only) Cash Flows From Operating Activities Operating income (loss) $ 3,592 $ (1,065) $ 2,527 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 5,157 996 6,153 Changes in operating assets and liabilities: Accounts, interfund and other receivables ( 1,075) 71 ( 1,004) Inventories 5 (3) 2 Accounts, inter fund and other payables 1,282 9 1,291 Accrued liabilities 635 178 813 Deposits 67 67 Total adjustments 6,071 1,251 7,322 Net cash flows from operating activities 9,663 186 9,849 Cash Flows From Noncapital Financing Activities Operating grants received 6,081 6,081 Operating transfers from other fimds 4,566 405 4,971 Operating trans£ers to other funds (473) (422) (895) Net cash flows from uoncapital financing activities 10,174 (17) 10,157 Cash Flows From Capital and Related Financing Activities Net bond proceeds transferred in 24,740 24,740 Acquisition and construction of property and equipment (45,257) (2~351) (47,608) Proceeds from sale of property 1,670 1,670 Principal paid on bonded debt (4,955) (4,955) Interest paid on bonded debt (3,766) (3,766) Capital contributed 1,664 257 1,921 Contributed capital dispositions (19) (19) Residual equity transfers out (129) (19) (148) Net cash flows from capital and related financing activities (26,052) (2,1 i3) (28,165) Cash Flows From Investing Activities Interest on investments 4,659 674 5,333 Net decrease in cash and cash equivalents (1,556) (1,270) (2,826) Cash and Cash Equivalents, Beginning 66,271 10,615 76,886 Cash and Cash Equivalents, Ending $ 64,715 $ 9,345 $ 74,060 Supplemental Noncash Disclosures Contributions of fixed assets from government $ 32 $ 257 $ 289 35 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2001 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, parking facilities, a mass transportation system, water treatment, wastcwater treatment, 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 thc United States of America ("GAAP") as applied to governmental units. Thc Governmental Accounting Standards Board ("GASB") is thc 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, account groups, 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 arc such that exclusion would cause the City's financial statements to be misleading or incomplete. Thc Governmental Accounting Standards Board has set forth criteria to bc considered in determining financial accountability. These criteria include a) 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 and b) fiscal dependency. There were no component units required to be included. Description of Funds and Account Groups These financial statements include all funds and account groups owned or administered by the City, for which the City acts as custodian. The City maintains its records on a modified cash basis of accounting under which only cash receipts, cash disbursements and encumbrances, investments and bonded debt are recorded. These modified cash basis accounting records have been adjusted to the accrual or modified accrual basis, as necessary, to prepare the accompanying financial statements in accordance with GAAP. The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary and fiduciary. The account groups are general fixed assets and general long-term debt. Each fund or account group is accounted for by providing a separate set of self-halancing accounts that comprise its assets, liabilities, equity, revenue 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. The funds and account groups are presented as follows: Governmental Fund Types The General Fund accounts for all financial resources of the City, except for those required to be accounted for separately. The revenues of the General Fund are primarily derived from property taxes, charges for ser- vices, fines and forfeitures, licenses and permits, and certain revenue from state and federal sources. The expenditures of the General Fund primarily relate to general administration, police and fire protection, 36 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 streets and public buildings operations and maintenance, and parks and recreation. Special Revenue Funds account for revenue derived from specific sources that are required to be accounted for as separate funds. The funds in this category include the Community Development Block Grant Fund, Other Shared Revenue and Grants Fund and Employee Benefits Fund. The Debt Service Fund accounts for the accumulation of resources for and the payment of general long- term debt principal, interest and related costs. Capital Projects Funds account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The funds in this category include the Bridge, Street and Traffic Control Construction Fund and the Other Construchon Fund. Proprietary Fund Types 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 goods or 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 various enterprise funds include the Parking Fund, Wastewater Treatment Fund, Water Fund, Sanitation Fund, Airport Fund, Mass Transportation Fund, Broadband Telecommunications Fund and the Housing Authority Fund. 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 the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund and the Information Technology Fund. Fiduciary Fund Types Trust and Agency Fnnds account for assets held by the City in a trustee or custodial capacity and include the following funds: Expendable Trust Fund Johnson County Council of Governments Trust Fund Agency Fund Project Green Fund Account Groups The General Fixed Assets Account Group accounts for all City general fixed assets, except for property and equipment associated with the operations of proprietary funds. The General Long-Term Debt Account Group accounts for all City general obligation and other long- term debt expected to be financed from governmental fund types. 37 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its "measurement focus." All governmental and expendable trust funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and currant liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds, along with the agency 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 enough 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 (if they are collected within 60 days after the year-end), intergnvemmental and interest earned on investments. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at ~he time liabilities are incurred. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for its proprietary operations. 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 thc ftnancial 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 thc determination of landfill closure and postclosure 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. For the purpose of the Statement of Cash Flows, restricted and nonrestricted 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 taxes receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the 38 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 succeeding year property tax receivable has been recorded, the related revenue is deferred and will not be recognized as revenue until the year for which it is levied. Federal and state grants, primarily capital 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. 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 Mass Transportation Fund, Water Fund and the Equipment Maintenance Fund, all of which are Proprietary Fund types. Inventories are reported at the lower of cost (first-in, first-out) or market. The costs of governmental fund type inventories are recorded as expenditures when purchased. Property and Equipment Property and equipment in the General Fixed Assets Account Group are reported at original purchase cost or at fair value at the date of donation when received as donated properties. The City follows the policy of not capitalizing infrastructure fixed assets such as streets, bridges, lighting systems, sidewalks and individual assets with a cost less than $5,000. Depreciation is not recorded for general fixed assets. Property and equipment associated w/th the proprietary fund types are reported at original cost or at fair value at the date of donation when received as donated properties. Assets with an individual cost less than $5,000 are not capitalized. Depreciation is computed using the straight-line method over the following estimated useful lives: Buildings and structures 20-50 years Improvements other than buildings 15-50 years Vehicles 5-20 years Other equipment 5-30 years In the Mass Transportation Fund, the City restores to retained earnings the depreciation on certain buses that have been acquired through federal grants, by a corresponding reduction of the conthbuted capital. This application is limited to the depreciation on the buses acquired by these grants, as the City anticipates that these buses will be replaced through additional federal funding. Interest is capitalized on proprietary fired assets acquired with tax-exempt debt. For the year ended June 30, 2001, approximately $756,000, $728,000 and $602,000 of interest was capitalized in the Wastewater Treatment, Water and Parking Funds, respectively. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project, with interest earned on invested proceeds over the same period. 39 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Bond Discount Debt issued by Enterprise Funds at a discount is recorded net of the unamortized discount, with the discount being amortized over the term of thc debt. Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent usc or for payment upon death, resignation or retirement. The City pays its employees (except firefightcrs) one-half of the accumulated sick leave at thc time of termination on the basis of the employee's then effective hourly base salary, provided that thc dollar amount of the payment may bc up to, but not exceed, the amount that an employee would bc paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985 are not eligible for payment o£ accumulated sick leave upon termination, death or retirement. For governmental fund types, the amount of accumulated unpaid vacation and sick leave that is payable from available resources is recorded as a liability of the respective fund, and the remaining amount is recorded in the General Lung-Term Debt Account Group. The amount of accumulated unpaid vacation and sick leave of proprietary fund type employees is recorded as a liability of the appropriate fund. Pensions Thc provision for pension cost is recorded on the accrual basis (based on statutorily dctemUned contribution rates), and the City's policy is to fund pension costs as they accrue. Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 13). Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual program budget, as prescribed by Iowa statutes, for all funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March I5 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 program: Community Protection Human Development Home and Community Environment Policy and Administration 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 program level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a program, within a fund type, without the approval of the governing body. It is 40 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 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 program basis, and to compare such program totals to program budgeted totals in order to demonstrate legal compliance with the budget. The City's budget for revenue focuses on the individual fund revenue rather than on aggregated fund totals. The City formally adopts budgets for several funds that are not required by state law to be included in the annual program 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. These budgets are adopted and amended at the same time and in the same manner as the City's annual program budget. 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 perrmt transfers between funds. d. To permit transfers between programs. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed, and the effects of those amendments are shown in the accompanying financial statements. The original budget was increased by $50 million due to carryover appropriations from the prior fiscal year and new appropriations for construction projects and the inclusion of the Housing Authority budget which had been omitted from the adopted budget in error. Appropriations as adopted or amended, and not encumbered, lapse at the end of the fiscal year. Statements of budget and actual revenue and expenditures have been presented on a fund type basis and disclosures are presented that compare budget and actual expenditures on the legal program budget basis for the City as a whole. The statements reflect the City's modified cash basis method of budget preparation, which records revenue on a cash basis and expenditures on a cash basis, plus accrues outstanding purchase orders at fiscal year-end. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting--under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation--is utilized in the governmental funds. Encumbrances outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. For budgetary control purposes, encumbrances provide authority to complete those transactions as expenditures during subsequent years. Encumbrances are reflected for all funds in the budgetary statements contained in this report, and expenditures that occun'ed as a result of a prior year's encumbrance, for which the budget was not amended, have been eliminated. 41 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 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. Total Columns on Combined Statements The total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these colunms do not present financial position, results of operations or cash flows in conformity with accounting principles generally accepted in the United States of America; neither are such data comparable to a consolidation because interfund transactions have not been eliminated in the aggregation of this data. Impact of Recently Issued Accounting Pronouncement In June 1999, the GASB issued Statement of Governmental Accounting Standards No. 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments" ("Statement No. 34"), which establishes that the basic financial statements and required supplementary information for general purpose governments should consist of management's discussion and analysis and basic financial statements, including government-wide financial statements, fund financial statements, notes to financial statements and required supplementary information. Statement No. 34 requires governments to report all capital assets, including infrastructure assets, in the government-wide statement of net assets and report depreciation expense in the statement of activities. The requirements of Statement No. 34 are effective for the City beginning in the year ending June 30, 2003. The City is currently evaluating the impact that will result from adopting Statement No. 34, and is therefore unable to disclose the impact that adopting Statement No. 34 will have on its financial position and results of operations. 2. Compliance and Accountability At June 30, 2001, the Community Development Block Grant Fund has a deficit fund balance of $351,000. This deficit does not represent a violation of any law and results primarily from modified accrual basis expenditures in excess of cost-reimbursement federal funding provided to-date on several projects. The deficit will be financed in the future fi.om federal financial assistance grant programs. At June 30, 2001, the Bridge, Street and Traffic Control Construction Fund has a deficit fund balance of $1,719,000. This deficit does not represent a violation of any law and results primarily from modified accrual basis expenditures in excess of cash basis funding provided to-date on several individual capital projects. The deficit will be financed in the future from grants, transfers from other City funds and proceeds from general obligation bonds. 3. Cash and Investments The City maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is presented on the combined balance sheet as "Equity in pooled cash and investments." 42 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Deposits At June 30, 2001, the carrying amount of the City's deposits, including certificates of deposit, was $94,859,319. The bank balances totaled $97,961,796. Of the bank balances, $900,000 was covered by federal depository insurance or the National Credit Union Insurance Fund, $9,742,761 was collateralized by a letter-of-credit held by thc City and $87,319,035 was collateralized with securities held by a multiple financial collateral pool in accordance with Chapter 12C of the Code of Iowa. Chapter 12C provides for additional assessments against public funds depositories to ensure that there will be no loss of public funds. Investments The City is authorized by statute and City policy to invest public funds in obligations of the United States Government, its agencies and inslrumentalities; certificates of deposit or other evidences of deposit at federally-insured depository institutions approved by the City Council and the Treasurer of the State of Iowa; certain registered opm-end management investment companies; and certain joint investment trusts. The following is a summary of the City's investments, including restricted assets, at June 30, 2001: Carrying Fair Amount Value Investments in: Iowa Public Agency Trust $4,758,969 $4,758,969 Mutual funds 174,891 174,891 $4,933,860 $4,933,860 The aforementioned Iowa Public Agency Investment Trust ("IPAIT') and mutual funds represent investments in pools 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. Il?AlT 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"). The City's investments during the year did not vary substantially from those at June 30, 2000, in amounts or level of risk. 43 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 4. Changes in General Fixed Assets During the year ended June 30, 2001, general fixed asset acquisitions and disposals by type and funding source were as follows: Changes by Type and Funding Source Disposals Balance Acquisitions and Balance July 1~ 2000 and Transfers Transfers June 30~ 2001 By type: Land $ 6,193,948 $ 1,393,887 $ 12,145 $ 7,575,690 Buildings and st~ctures 22,192,034 2,781,200 973,799 23,999,435 Improvements other than buildings 1,832,806 439,813 2,272,619 Equipment and vehicles 8,604,280 1,296,905 1,359,277 8,541,908 Construction in progress 9,385,199 5,631,352 11,277,730 3,738,821 $ 48,208,267 $ 11,543,157 $ 13,622,951 $ 46,128,473 By funding source: GeneralFund $ 21,224,385 $ 3,841,031 $ 6,825,578 $ 18,239,838 Special Revenue Funds 5,217,172 812,439 245,234 5,784,377 Gifts 616,535 53,888 37,961 632,462 Capital Projects Funds - General obligation bond proceeds 20,007,242 6,316,718 6,379,003 19,944,957 Other governments 1,142,933 519,081 135,175 1,526,839 Total general fixed assets $ 48,208,267 $ 11,543,157 $ 13,622,951 $ 46,128,473 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 As of June 30, 2001, the composition of general fixed assets by type and function was as follows: Buildings Improvements Equipment Construction and other than and in Land Structures Buildings Vehicles Progress Total Community Protection: Police protection $ $ 379,774 $ 33,304 $ 2,987,281 $ 234,871 $ 3,635,230 Fire protection 41,581 482,968 4,025 2,621,544 2,850 3,152,968 Traffic engineering 2,182 257,264 259,446 Inspection services 989 98,390 99,379 Total Community Protection 41,581 865,913 37,329 5,964,479 237,721 7,147,023 Home and Community Environment: Physical environment 30,935 111,503 385,317 169,657 240 697,652 Community development 2,533,071 91,234 85,354 1,401,468 4,111,127 Streets 74,509 181,027 255,536 Total Home and Community Environment 2,564,006 277,246 385,317 436,038 1,401,708 5,064,315 Human Development: Parks 3,485,443 3,082,725 1,493,689 409,540 652,994 9,124,391 Recreation 6,715,597 207,140 434,886 32,214 7,389,837 Library 1,418,660 3,633,887 518,714 584,141 6,155,402 Animal Shelter 606,785 23,608 85,541 715,934 Senior Center 1,474,063 1,850 191,54~5 596,070 2,263,528 Total Human Development 4,904,103 15,513,057 1,726,287 1,640,226 1,865,419 25,649,092 Policy and Administration 66,000 7,343,219 123,686 501,165 233,973 8,268,043 Total general fixed assets $ 7,575,690 $ 23,999,435 $ 2,272,619 $ 8,541,908 $ 3,738,821 $ 46,128,473 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 During the year ended June 30, 2001, general fixed asset acquisitions and disposals by function were as follows: Acquisitions Disposals Balance and and Balance July L 2000 Transfers Transfers June 30~ 2001 Community Protection: Police protection $ 3,514,781 $ 1,287,160 $ 1,166,711 $ 3,635,230 Fire protection 2,999,641 801,433 648,106 3,152,968 Traffic engineering 82,769 243,006 66,329 259,446 Inspection services 99,379 29,440 29,440 99,379 Total Community Protection 6,696,570 2,361,039 1,910,586 7,147,023 Home and Community Environment: Physical environment 5,422,794 725,030 5,450,172 697,652 Community development 3,222,892 1,072,908 184,673 4,111,127 Streets 368,126 112,590 255,536 Total Home and Community Environment 9,013,812 1,797,938 5,747,435 5,064,315 Human Development: Parks 9,132,473 1,566,812 1,574,894 9,124,391 Recreation 7,364,314 124,912 99,389 7,389,837 Library 4,865,466 2,940,967 1,651,031 6,155,402 Animal Shelter 718,540 2,606 715,934 Senior Center 2,013,362 294,396 44,230 2,263,528 Total Human Development 24,094,155 4,927,087 3,372,150 25,649,092 Policy and Administration 8,403,730 2,457,093 2,592,780 8,268,043 Totalgeneral fixed assets $ 48,208,267 $ 11,543,157 $ 13,622,951 $ 46,128,473 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 5. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa The City is a participating employer in the Municipal Fire and Police Retirement System of Iowa (MFPRSI or the "Plan"), which is a cost-sharing multiple-employer defined benefit public police and fire employees retirement system. All fire fighters and police officers appointed under civil service participate in the Plan. The Plan provides retirement, disability and death benefits that are established under state statute. The Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to Municipal Fire and Police Retirement System of Iowa, 2836 104~' Street, Urbandale, Iowa 50322. A member may retire at age 55 with 22 years of employment, and receive full benefits that are equal to 66% of the member's average final compensation for a member retiring after July 1, 2000. Additionally, members retiring on or after July 1, 2000, with more than 22 years of service will receive an additional 2% of the member's average final compensation for up to 8 years of additional service. Other benefits are also calculated as varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rotes are established by statute. For the fiscal year ended June 30, 2001, members contributed 9.35%. The City's contribution rate is based upon an actuarially determined normal contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of the Plan less current plan assets, the total then being divided by 1% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions. Legislatively appropriated contributions from the state to the Plan may further reduce the City's contribution rate. However, the City's contribution rate may not be less than 17% of eamable compensation. For the year ended June 30, 2001, the City's contribution rate was 17% of earnable compensation of each member. The contribution paid by the City for the years ended June 30, 1999, 2000 and 2001 was $856,123, $964,083 and $960,787, respectively, and was equal to the required contributions for each year. Iowa Public Employees Retirement System The City contributes to the Iowa Public Employees Retirement System (IPERS), which is a cost-sharing multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to 1PERS, P.O. Box 9117, Des Moines, Iowa 50306-9117. All employees, except temporary employees of six months or less of employment duration, who do not participate in any other public retirement system in the state are eligible and must participate in IPERS. The pension plan provides retirement and death benefits that are established by state statute. Generally, a member may retire at the age of 65, or any time after age 62 with 20 years or more of service, or when age plus years of service equals or exceeds 88, and receive unreduced (for age) benefits. Members may also retire at the age of 55 or more at reduced benefits. Benefits vest aRer four years of service or after attaining the age of 55. Full benefits are equal to 60% of the average of the highest three years of covered wages times years of service divided by 30. Plan members are required to contribute 3.70% of their annual covered salary and the City is required to contribute 5.75% of annual covered payroll. Contribution requirements are established by State statute. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 The City's contribution to 1PERS for the years ended June 30, 1999, 2000 and 2001 was $980,580, $1,081,258 and $1,093,218, respectively, and was equal to the required conlx/butions for each year. 6. Bonded and Other Long-Term Debt The following is a summary of changes in bonded and other long-term debt for the year ended June 30, 2001: July 1~ 2000 Issues Retirements June 30~ 2001 General Long-Term Debt Account Group: General obligation bonds $ 24,428,329 $ 25,810,000 $ 3,540,986 $ 46,697,343 R.I.S.E. loan 13,388 13,388 Employee vested benefits 1,057,088 56,542 1,000,546 Total General Long-Term Debt Account Group 25,498,805 25,810,000 3,610,916 47,697,889 Proprietary Funds: General obligation bonds 16,761,671 1,894,014 14,867,657 Revenue bunds 89,375,000 25,000,000 3,130,000 111,245,000 Total Proprietary Funds 106,136,671 25,000,000 5,024,014 126,112,657 Total long-term debt $131,635,476 $ 50,810,000 $ 8,634,930 $ 173,810,546 * Does not include discount of $1,206,908 General Obligation Bonds Various issues of general obligation bonds totaling $61,565,000 are outstanding as of June 30, 2001. The bonds have interest rates ranging from 3.4% to 5.6% and mature in varying annual amounts ranging from $150,000 to $1,210,000 per issue, with the final maturities due in the year ending June 30, 2018. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds are accounted for through the Debt Service Fund. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise funds is used to pay the general long-term debt principal and interest. The liability for those bonds that are expected to be paid by enterprise funds is included in those funds. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Revenue Bonds As of June 30, 2001, the following unmatured revenue bond issues are outstanding: Wastewater Parkin~ Treatment Water Original issue amount $16,690,000 $85,200,000 $22,200,000 Interest rates 5.2% to 7.4% 4.25% to 6% 4.75% to 5.625% Annual maturities $305,000 to $100,000 to $140,000 to $3,995,000 $3,315,000 $910,000 Amount outstanding $14,280,000 $74,905,000 $22,060,000 The revenue bond ordinances required that wastewater treatment, parking system and water 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 Amount (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest Sinking Reserve maturities. (b) Revenue Debt Service Amount required to be deposited in the Revenue Bond Reserve and Interest Reserve until the reserve fund equals: Parking Revenue bonds - 10% of the original principal amount. Wastewater Revenue and Water Revenue bonds - maximum debt service due on the bonds in any succeeding fiscal year. (c) Improvement Reserve $20,000 per month to a maximum reserve balance of $2,000,000 for wastewater, $5,000 per month to a maximum reserve balance of $300,000 for parking bonds and $5,000 per month to a maximum reserve balance of $300,000 for water. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2001 are comprised of the following issues: Date of Amount Interest Outstanding Issue Issued Rates June 30, 2001 General Obligation Bonds: Multi-Purpose & Wastewater Treatment andWater2 Sep. 1991 $ 2,340,000 5.3- 5.6 $ 225,000 Refunding of two bonds with issue dates of November 1, 1985 and August 1, 19860 Jun. 1992 4,870,000 3.4 - 5.5 490,000 Multi-Purpose Capital Loan Note4 Oct. 1992 3,450,000 4.75 - 5.2 1,680,000 Multi-Purpose & Wastewater Treatment and Water Construction3 Jun. 1994 7,370,000 4.6 - 4.7 2,175,000 Multi-Purpose & Wastewatcr Treatment and Water Construction3 Apr. 1995 8,500,000 4.8 - 5.125 4,240,000 Multi-Purpose and Water Construction~ Mar. 1996 6,100,000 3.6 - 5.5 5,000,000 Multi-Purpose Mar. 1997 5,200,000 4.5 - 4.7 3,100,000 Water Construction~ Nov. 1997 5,540,000 4.875 - 5.0 4,700,000 Multi-Purpose Apr. 1998 8,500,000 4.35 - 4.75 6,775,000 Multi-Purpose Mar. 1999 9,000,000 4.125 - 4.7 8,075,000 Multi-Purpose Jul. 2000 14,310,000 5.0 - 5.5 13,605,000 Multi-Purpose Jun. 2001 11,500,000 4.0 - 4.9 11,500,000 Total General Obligation Bonds 61,565,000 Revenue Bonds: Refunded Parking Bonds Jun. 1992 1,190,000 5.2 - 5.3 160,000 Refunded Wastewater Trealment Bonds2 Jan. 1993 37,300,000 5.8 - 6.0 29,210,000 Refunded Parking Bonds Apr. 1995 2,500,000 7.25 - 7.4 1,120,000 Parking Bonds Dec. 1999 11,350,000 5.875 - 6.0 11,350,000 Taxable Parking Anticipation Notes Dec. 1999 1,650,000 6.875 1,650,000 Wastewater Treatment Bonds Mar. 1996 18,300,000 5.0 - 5.75 17,000,000 Wastewater Treatment Bonds May 1997 10,600,000 5.15 - 5.5 9,925,000 Wastewater Treatment Bonds Jan. 1999 7,000,000 4.25 - 4.87 6,770,000 Wastewater Treatment Bonds Oct. 2000 12,000,000 5.125 - 5.5 12,000,000 Water Bonds May 1999 9,200,000 4.75 - 5.0 9,060,000 Water Bonds Dec. 2000 13,000,000 5.0 - 5.625 13,000,000 Total Revenue Bonds 111,245,000 $172,810,000 s 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 ~These bond issues have a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. 2These bond issues have a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Wastewater Treatment Fund. 3These bond issues have a portion of the general obligation bonds payable shown as a liability on the balance sheets of the Water Fund and the Wastewater Treatment Fund. 4This bond issue is shown as a liability on the balance sheet of the Parking Fund. SDoes not include discount on Enterprise Fund issues of $1,206,908. Refunding of Parking Revenue Bonds The 1978 Series Parking Facility Revenue Bonds with a total outstanding balance of $4,730,000 were refunded in November 1985 by the issuance of $3,795,000, 1985 Series Parking System Revenue Bonds. An irrevocable trust was created with an unrelated third party, whereby the proceeds from the 1985 Series Parking System Revenue Bonds were converted into U.S. Government securities. These securities were placed in an escrow account for the express purpose of paying the principal and interest on the refunded bonds as they become due. For financial reporting purposes, the debt has been in substance defeased and the liability has, therefore, been removed from the Parking Fund. As of June 30, 2001, the amount of defeased debt amounted to $1,235,000. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Facility Refunding 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 respect/ve bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2001, there were nine series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $1,936,054. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Summary of Principal and Interest Maturities Annual debt service requirements to service all outstanding bonded debt as of June 30, 2001 are as follows: General Obligation Bonds Revenue Bonds June 30 Principal Interest Principal Interest 2002 $ 5,405,000 $ 2,936,912 $ 5,870,000 $ 6,214,457 2003 4,905,000 2,700,139 3,935,000 5,714,599 2004 5,105,000 2,474,051 4,165,000 5,488,178 2005 4,470,000 2,237,144 4,250,000 5,255,863 2006 4,540,000 2,028,916 4,490,000 5,017,525 2007-2010 14,035,000 6,182,569 20,585,000 17,392,928 2011-2014 13,435,000 3,631,263 22,150,000 12,344,064 2015-2018 9,670,000 1,107,660 15,790,000 8,436,650 2019-2022 14,335,000 4,640,370 2023-2026 15,675,000 1,135,778 $61,565,000 $23,298,654 $111,245,000 $71,640,412 Debt Legal Compliance Legal Debt Margin: As of June 30, 2001, the general obligation debt issued by the City did not exceed its legal debt margtn computed as follows: Assessed valuation: Real property $2,541,718,566 Utilities 56,108,079 Total valuation $2.597.826,645 Debt limit, 5% of total assessed valuation $129,891,332 Debt applicable to debt limit: General obligation bonds 61,565,000 Legal debt margin 5; 68.326:332 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 7. Contractual Commitments and Contingencies The total outstanding contractual comnutments as of June 30, 2001 are as follows: Fund Proiect Amount. General Planning services and pedestrian bridge $ 145,242 Bridge, Street and Traffic Paving, streetscapc, stormwater retention and Control Construction drainage 7,593,449 Other Construction Library expansion design, senior center pedestrian bridge, trail tunnel construction and trail design 1,385,461 Parking Parking ramp construction 28,043 Wastewater Treatment Wastcwater treatment facility construction and consulting and sanitary sewer construction 11,777,687 Water Water distribution, facility design and construction and main extension 12,391,739 Sanitation Landfill consulting and recycling facility paving 263,341 Airport Commercial development design and construction 201,383 Transit Transit interchange, transportation center land acquisition and transit parking lot paving 85,172 Broadband Office construction 9,800 Housing Authority Home construction 30,183 $ 33,911,500 In June 2000, the City entered into an agreement with Terry L. Stamper Holdings L.L.C. ("TLS") to install the infrastructure necessary to support the development of a new project known as the Peninsula Neighborhood. On June 26, 2001, the City entered into an agreement with TLS that established a line of credit in an amount not to exceed $690,000 on behalf of TLS for the payment of expenses directly associated with the installation of infrastructure within the Peninsula Neighborhood First Addition. The agreement remains in effect until December 26, 2001; however, it may be extended to one year from the date of execution in the event of Economic Impracticality. "Economic Impracticality" means and 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 includes: (I) an economic depression, as determined by the United States government; (2) an increase of more than four percent (4%) in the Standard Federal Bank 30-year residential mortgage secured interest rate offered to borrowers of less than $200,000 paying two discount points and making a 20% down payment; (3) the unavailability of skilled housing labor, or the unavailability of building material; or (4) the unavailability of financing due to the outbreak of war or abnormal weather conditions. Sums expended by the City on behalf of TLS shall accrue interest at the rate of nine per cent (9%) per annum on each debit incurred under the line of credit. Interest ends on the date the debt is paid in full. TLS shall repay the City all sums, plus accrued interest upon the earliest to occur of(a) when TLS secures alternate construction financing, or (b) the expiration of the agreement which is December 31, 2001, unless extended due to Economic Impracticality. 8. 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, 2001, the City purchased property, liability and workers' compensation insurance under the program that provides for a $50,000 self-insured retention per occurrence on property losses and a $100,000 self-insured retention per occurrence on liability and workers' compensation losses, with an annual aggregate retention of $250,000 on property losses and $1,000,000 on liability and workers' compensation losses. The insurance provides coverage for claims in excess of the aforementioned self- insured retention up to a maximum of $10,000,000 annual aggregate of losses paid. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund arc available to cover the self-insured retention mounts and any uninsured losses. Settled claims have not exceeded this commercial coverage in any of the past four fiscal years. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities balance includes a claims liability at June 30, 2001, 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, 2001 and 2000 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 1999 - 2000 $1,040,000 $273,000 $497,000 $816,000 2000 - 2001 816,000 679,000 579,000 916,000 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 $50,000 per employee with an aggregate stop-loss of approximately $2,514,000. For 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 the year ended June 30, 2000, the aggregate stop-loss was approximately $2,218,000; otherwise, there was no change in coverage from the prior year. 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 fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2001 and 2000 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-Eud 1999 - 2000 $307,000 $2,489,000 $2,431,000 $365,000 2000 - 2001 365,000 3,004,000 2,930,000 439,000 9. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, including 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 fmancial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 10. Segment Information for Enterprise Funds The City maintains eight enterprise funds. These funds operate primarily from proceeds of user charges. Segment information as of and for the year ended June 30, 2001 is as follows (amounts expressed in thousands): Wastewater Parking Treatment Water Sanitation Results of operations: Total operating revenues $ 3,409 $ 11,224 $ 9,181 $ 5,814 Depreciation 464 2,516 601 546 Operating income (loss) 769 5,460 5,170 697 Operating grants Operating transfers, net (130) (223) (65) Interest expense (376) (3,382) (742) Net income (loss) 1,293 4,306 6,065 1,511 Financial position: Total assets 27,972 136,521 74,093 24,061 Net working capital (deficiency) 3,583 I9,954 18,639 10,293 Property and equipment additions 7,415 16,90l 16,596 1,056 Bonded debt payable 15,856 75,858 33,192 Retained earnings 10,865 33,067 32,302 15,786 Current capital contributions from government 31 1 Total equity 10,940 56,009 37,655 15,843 (continued on page 57) 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2001 Mass Broadband Housing Airport Transportation Telecommunications Authority TOTAL $ 180 $ 821 $ 819 $ 390 $ 31,838 153 520 9 348 5,157 (239) (2,966) 243 (5,542) 3,592 705 5,376 6,081 1,936 2,478 97 4,093 (4,500) 1,754 678 414 (31) 15,990 11,519 5,802 1,656 8,283 289,907 (2,788) 884 870 2,389 53,824 1,528 889 732 140 45,257 124,906 1,679 366 1,424 1,198 96,687 32 8,695 5,456 1,610 7,632 143,840 11. Interfund Receivables and Payables As o£ June 30, 2001, interfund receivables and payables were as follows: Advances From General Fund Parking Sanitation Total Advances to: GeneralFund $ $ $ 1,712,648 $ 1,712,648 Community Development Block Grant 127,103 127,103 Capital Projects-Other Construction 1,127,527 1,127,527 Information Technology 61,000 61,000 Airport 1,182,930 1,277,863 2,460,793 Total $ 2,437,560 $ 61,000 $ 2,990,511 $ 5,489,071 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 200I 12. Post-Employment Benefits All full-time employees who retire or become disabled are offered the following post-employment benefit options: Health insurance - The option of continuing with the City's health insurance plan at the individual's own cost. Life insurance - The option of converting the employee's City-paid policy from term insurance to whole life insurance at the individual's expense with the City's life insurance carder. Long-term disability - 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 cartier. The above options, while at the individual's own expense, are included within the City's overall insurance package. Therefore, a portion of the above coverages is being subsidized by the City and its current employees. However, the City cannot reasonably estimate the amount of this subsidy and it is being expensed as incurred by the City. 13. Landfill Closure and Postclosure Care Costs In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure andPostclosure Care Costs (the "Statement"). Under these roles, 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 postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs as of June 30, 2001 is approximately $8,000,000, which is based on 59% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $5,600,000 will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the landfill closure and postclosure care costs at June 30, 2001 was determined by engineers from Howard R. Green Company and approximated $13,600,000. 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, 2001. These amounts are based on an estimated postclosure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and postclosure 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 postclosure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2001, the Sanitation Fund had $5,937,000 in related equity in pooled cash and investments, at fair value, designated for satisfaction of postclosure 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 postclosure care costs, anticipated future inflation costs 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (concluded) June 30, 2001 and additional costs that might arise from changes in postclosure 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. 14. Restatement of Beginning Fund Equity ~he beginning fnnd balance of the Employee Benefits Special Revenue Fund has been restated because revenues from a contract for services that were recognized in the year ended June 30, 2000, should have been deferred. The beginning retained earnings of the Wastewater Treatment, Water, and Sanitation Enterprise Funds have been restated to record accounts receivable for billed services at June 30, 2000, which had not previously been recorded. The beginning retained earnings of the Broadband Telecommunications Fund has been restated to reflect an error in recording a deposit from previous years. The beginning retained earnings of the Housing Authority Fund has been restated to record an overstatement in accounts receivable for due from other governments at June 30, 2000. (amounts expressed in thousands) Employee Wastewater Broadband Housing Benefits Treatment Water Sanitation Telecommunications Authority Balance June 30, 2000, ~s previously stated $3,787 $28,093 $25,794 $14,265 $980 $196 Adjustments (94) 679 470 77 30 (49) Balance June 30, 2000, as restated $3,693 $28,772 $26,264 $14,342 $1,010 $147 15. Residual Equity Transfers Amounts recorded as residual equity transfers out represent assets transferred between proprietary funds and are recorded as increases in contributed capital in receiving fund. 59 60 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: Community Development Block Grant Fund - accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. Other Shared Revenue and Grants Fund - accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. Employee Benefits Fund - accounts for the employee benefits related to those City employees who are paid through governmental fund types, which are funded by a separate property tax levy. 61 CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALI., SPECIAL REVENUE FUNDS June 30, 2001 (mounts expressed in thousands) Other Community Shared Development Revenue Block and Employee Grant Grants Benefits Total Assets Equity in pooled cash and investments $ $ 1,828 $ 3,160 $ 4,988 Receivables: Property taxes 4,561 4,561 Accounts and unbilled usage 107 107 Interest 26 78 104 Notes 3,862 3,862 Due from other governments 127 378 505 Total assets $ 3,989 $ 2,232 $ 7,906 $ 14,127 Liabilities and Fund Balances (Defici0 Liabilities: Accounts payable $ 342 $ $ 15 $ 357 Accrued liabilities 9 I I0 Advances from other funds 127 127 Deferred revenue: Proper~y taxes 4,470 4,470 Other 3,862 107 3,969 Total liabilities 4,340 4,593 8,933 Fund balances (deficit): Reserved for: Employee retirement commitments 3,313 3,313 Unreserved, undesignated (351) 2,232 1,881 Total fund balances (deficit) (351) 2,232 3,313 5,194 Total liabilities and fund balances (deficit) $ 3,989 $ 2,232 $ 7,906 $ 14,127 62 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT) ALL SPECIAL REVENUE FUNDS Year ended June 30, 2001 (amounts expressed in thousands) Other Community Shared Development Revenue Block and Employee Grant Grants Benefits Total gevennes Property taxes $ $ $ 4,078 $ 4,078 Intergovernmental 1,612 4,989 6,601 Charges for services 2 94 96 Use of money and property 163 67 177 407 Miscellaneous 40 ! 84 224 Total revenues 1,817 5,240 4,349 11,406 Expenditures Current operating: Home and community environment 1,968 187 2,155 Policy and administration 259 259 Capital outlay 39 39 Total expenditures 1,968 226 259 2,453 Excess (deficiency) of revenues over (under) expenditures ( 151 ) 5,014 4,090 8,953 Other Financing (Uses) Operating transfers: (To) other funds (5,478) (4,470) (9,948) Excess (deficiency) of revenues over (under) expenditures and other financing uses (151 ) (464) (380) (995) Fund Balances (Deficit), Beginning (as restated) (200) 2,696 3,693 6,189 Fund Balances (Deficit), Ending $ (351) $ 2,232 $ 3,313 $ 5,194 63 64 CAPITAL PROJECTS FUNDS Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are fmanced by proprietary fund monies. The funds in this category are as follows: Bridge, Street and Traffic Control Construction Fund - accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, lighting systems and storm sewers. Other Construction Fund - accounts for the construction or replacement of other City general fixed assets, such as administrahve buildings with various funding sources, including general obligation bonds, inter- governmental revenues and contributions. 65 CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS June 30, 2001 (amounts expressed in thousands) Bridge, Street and Traffic Control Other Construction Construction Total Assets Accounts and unbilled usage receivable $ 20 $ $ 20 Interest receivable 6 21 27 Due from other governments 20 20 Restricted assets - Equity in pooled cash and investments 12,012 12,012 Total assets $ 46 $ 12,033 $ 12,079 Liabilities and Fund Balances (Deficits) Liabilities: Accounts payable $ 81 $ 137 $ 218 Contracts payable 1,679 254 1,933 Accrued liabilities 5 5 Advances from other funds 1,128 1,128 Total liabilities 1,765 1,519 3,284 Fund balances (deficits): Reserved for encumbrances 7,593 11,718 19,311 Unreserved, undesignated (9,312) (1,204) ( 10,516) Total fund balances (deficits) ( 1,719) 10,514 8,795 Total liabilities and fund balances (deficits) $ 46 $ 12,033 $ 12,079 66 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) ALL CAPITAL PROJECTS FUNDS Year ended June 30, 2001 (amounts expressed in thousands) Bridge, Street and Traffic Control Other Construction Construction Total Revenues Intergovernmental $ 938 $ 155 $ 1,093 Charges for services 3 3 Use of money and property (4) 411 407 Miscellaneous 32 190 222 Total revenues 969 756 1,725 Expenditures Capital outlay 9,606 5,623 15,229 Deficiency of revenue under expenditures (8,637) (4,867) (13,504) Other Financing Sources (Uses) Operating transfers: From other funds 10,207 575 10,782 (To) other funds (9,633) (9,633) Net bond proceeds 25,523 25,523 Total other financing sources (uses) 10,207 16,465 26,672 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,570 11,598 13,168 Fund Balances (Deficits), Beginning (3,289) (1,084) (4,373) Fund Balances (Deficits), Ending $ (1,719) $ 10,514 $ 8,795 67 68 ENTERPRISE FUNDS Enterprise Funds account for operations and activities of the City that arc financed and operated in a manner similar to a private business enterprise, and where thc costs of providing serWccs to thc general public on a continuing basis are expected to be £manccd or recovered primarily through user charges, or where thc 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. Thc funds in this category are as follows: Parking Fund - accounts for the operation and maintenance of the "on" and "off' street public parking facilities. Wastewater Treatment Fund - accounts for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. Water Fund - accounts for the operation and maintenance of the water system. Sanitation Fund - accounts for the operation and maintenance of the solid waste collection system and landfill. Airport Fund - accounts for the operation and maintenance of the airport facility. Mass Transportation Fund - accounts for the operation and maintenance of the public transportation system. Broadband Telecommunications Fund - accounts for the operation and maintenance of the Broadband Telecommunications Commission that oversees the franchise agreement with the cable television company, including production and broadcasting on the government television channels. Housing Authority Fund - accounts for the operations and activities of thc City's Iow and moderate income housing assistance and public housing programs. 69 CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS June 30, 2001 (amounts expressed in thousands) Wastewater Parking Treatment Water Sanitation Assets Cash on hand $ I $ $ $ Equity in pooled cash and investments 201 7,615 10,540 14,771 Receivables: Accounts and unbilled usage 13 1,682 1,165 539 Interest 78 853 272 210 Notes 179 Advances to other funds 61 2,991 Due from other governments 19 73 138 Inventories 309 Restricted assets - Equity in pooled cash and investments 4,207 14,385 9,46l Proper~ and equipment: Land 4,150 631 4,326 326 Buildings and structures 12,341 38,253 4,695 163 Improvements other than buildings 8 61,185 19,783 7,457 Equipment and vehicles 333 8,623 1,598 141 Accumulated depreciation (6,433) (26,869) (8,466) (3,572) Construction in progress 12,814 30,090 30,272 1,035 Total assets $ 27,972 $ 136,521 $ 74,093 $ 24,061 Liabilities and Equity Liabilities: Accounts payable $ 34 $ 73 $ 175 $ 42 Contracts payable 663 2,219 1,923 47 Accrued liabilities 85 117 123 8,063 Advances from other funds Due to other governments 13 66 Deferred revenue Liabilities payable from restricted assets: Interest payable 394 2,245 677 Deposits 335 Bonded debt payable (net of unamortized discounts) 15,856 75,858 33,192 Total liabilities 17,032 80,512 36,438 8,218 Equity: Contributed capital 75 22,942 5,353 57 Retained earnings: Reserved by bond ordinance 4,207 8,535 4,308 Reserved by State statute 200 Reserved by grant agreement Unreserved 6,658 24,532 27,994 15,586 Total equity 10,940 56,009 37,655 15,843 Total liabilities and equity $ 27,972 $ 136,521 $ 74,093 $ 24,061 70 Mass Broadband Housing Airport Transportation Telecommunications Authority Total $ $ 15 $ $ 2 870 754 1,808 36,559 145 3,544 9 17 1,440 920 1,099 3,052 35 254 211 730 96 405 101 28,154 6,688 I 716 16,838 2,949 2,451 10 6,753 67,615 2,001 293 90,727 23 5,096 192 74 16,080 ~,076) ~,506) (178) (2,425) (54,525) 1,898 1,237 716 125 78,187 $ 11,519 $ 5,802 $ 1,656 $ 8,283 $ 289,907 $ 4 $ 30 $ 6 $ 40 $ 404 344 157 12 7 5,372 15 159 28 34 8,624 2,461 2,461 79 432 432 138 473 124,906 2,824 346 46 651 146,067 7,016 5,090 186 6,434 47,153 17,050 2OO 1,082 1,082 1,679 366 1,424 il6 78,355 8,695 5,456 1,610 7,632 143,840 $ H,519 $ 5,802 $ 1,656 $ 8,283 $ 289,907 71 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN TOTAL EQUITY ALL ENTERPRISE FUNDS Year ended June 30, 2001 (amounts expressed in thousands) Wastewater Parking Treatment Water Sanitation Operating Revenues Charges for services $ 2,708 $ 11,178 $ 9,179 $ 5,675 Miscellaneous 701 46 2 139 Total operating revenues 3,409 11,224 9,181 5,814 Operating Expenses Personal services 1,250 1,379 1,410 1,413 Commodities 37 328 684 141 Services and charges 889 1,541 1,316 3,017 2, I76 3,248 3,410 4,571 Depreciation 464 2,516 601 546 Total operating expenses 2,640 5,764 4,011 5,117 Operating income (loss) 769 5,460 5,] 70 697 Nonoperating Revenues (Expenses) Gain on sale of proper~ 464 Operating grants Interest income 436 ' 1,600 1,448 879 Interest expense (376) (3,382) (742) Income (loss) before capital contributions and operating transfers 1,293 3,678 5,876 1,576 Capital Contributions 758 412 Transfers in Transfers out (130) (223) (65) Total capital contr/butions and operating transfers 628 189 (65) Net Income (loss) 1,293 4,306 6,065 1,511 Depreciation on assets acquired by contributed capital that reduces contributed capital Total Equity, Beginning (as restated) 9,656 51,714 31,586 14,398 Residual equity transfers in (out) (9) (I I) (27) (67) Capital contributed from Government 31 Disposition and reduction of contributed capital assets Total Eq uily, Ending $ 10,940 $ 56,009 $ 37,655 $ 15,843 72 Mass Broadband Housing Airport Transportation Telecommunications Authority Total $ $ 613 $ 2 $ 300 $ 29,655 180 208 817 90 2,183 180 821 819 390 31,838 106 2,165 302 606 8,631 7 337 34 32 1,600 153 765 231 4,946 12,858 266 3,267 567 5,584 23,089 153 520 9 348 5,157 419 3,787 576 5,932 28,246 (239) (2,966) 243 (5,542) 3,592 22 486 705 5,376 6,081 34 22 74 113 4,606 (4,500) (205) (2,239) 317 (31) 10,265 23 439 1,632 1,936 2,478 152 4,566 (55) (473) 1,959 2,917 97 5,725 1,754 678 414 (31) 15,990 314 314 6,956 4,778 1,196 7,682 127,966 (15) 32 (314) (19) (333) $ 8,695 $ 5,456 $ 1,610 $ 7,632 $ 143,840 73 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS Year ended June 30, 2001 (amounts expressed in thousands) Wastewater Paring Treatment Water Sanitation Cash Flows From Operating Activities Operating income (loss) $ 769 $ 5,460 $ 5,170 $ 697 Adjusanents lo reconcile operating income (loss) to net cash flows from operating activities: Depreciation 464 2,516 601 546 Changes in operating assets and liabilities: Accounts, interfimd and other receivshles (248) (175) (269) 168 Inventories 8 Accounrs, inrerfund and other payables (253) 1,586 756 (157) Accrued liabilities 12 3 616 Deposits (29) Total adjustments (37) 3,939 1,070 l, 173 Net cash flows from operating activities 732 9,399 6,240 1,870 Cash Flows From Noncaptial Financing Activities Operating grants recalved Operating Iransfers from oilier fmlds Operation Iransfers to other funds (130) (223) (65) Net cash flows fi.om noncapital fimmcing aciivitie s (130) (223) (65) Cash Flows From Capital and Related Financing Activities Net bond proceeds transferred in 11,882 12,858 Acquisition and conslmction ofproper~ and equipment (7,415) (16,901) (16,596) (1,056) Proceeds from sale of property L367 Principal paid on bonded debt (715) (2,967) (1,273) Interest paid on bonded debt (449) (2,975) (342) Capflal contributed 758 443 1 Conltibuted capital dispositions Residual equity transfers out (9) (11) (27). (67) Net cash flows fi.om capital and related finm~cing activities (7,221) (10,214) (4,937) (1,122) Cash Flows From InvesOng Activities Interest on inveslments 460 1,477 1,541 922 Net increase (decrease) in cash m~d cash equivalents (6,029) 532 2,621 1,605 Cash and Cash Equivalents, Beginning 10,438 21,468 17,380 13,166 Cash and Cash Equivalents, Ending $ 4,409 $ 22,000 $ 20,001 $ 14,771 Supplemental Noncash Disclosures Contributions of fixed assets from government $ $ $ 31 $ I 74 Mass Broadband Homing Airport Transportation Telecommunications Authority Total $ (239) $ (2,966) $ 243 $ (5,542) $ 3,592 153 520 9 348 5,157 (4) (249) (23) (275) (1,075) (3) S (363) 94 6 (387) 1,282 3 (3) 2 2 635 96 67 (211) 359 (6) (216) 6,071 (450) (~607) 237 (5,758) 9,663 705 5,376 6,081 1,936 2,478 152 4,566 (55) (473) 1,936 3,183 97 5,376 10,174 24,740 (1,528) (889) (732) (140) (45,257) 303 1,670 (4,955) (3,766) 23 439 1,664 (19) (19) (15) (129) (1,520) (450) (732) 144 (26,052) 34 34 78 113 4,659 160 (320) (125) (1,556) 711 1,074 2,034 66,271 $ $ 871 $ 754 $ 1,909 $ 64,715 $ $ $ $ $ 32 75 76 INTERNAL SERVICE FUNDS Intemal Service Funds account for goods and services provided by one department to other City departments on a cost-reimbursement basis. The funds in this category are: Equipment Maintenance Fund - accounts for the provision of maintenance for City vehicles and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund - accounts for the support services of photocopying, office supplies, 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 w/th data processing, including the operation and replacement of equipment. 77 CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS June 30, 2001 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Equity in pooled cash and investments $ 2,874 $ 544 $ 1,494 $ 964 $ 5,876 Receivables: Accounts and unbilled usage 44 44 Interest 44 8 17 19 88 Inventories 153 153 Restricted assets - Equity in pooled cash and investments 3,469 3,469 Property and equipment: Land 45 45 Buildings and structures 583 6 38 627 Improvements other than buildings 50 50 Equipment and vehicles 8,397 263 3 493 9,156 Accumulated depreciation (4,780) (145) (2) (382) (5,309) Construction in progress 122 25 155 302 Total assets $ 7,532 $ 701 $ 4,981 $ 1,287 $ I4,501 Liabilities and Equity Liabilities: Accounts payable $ 156 $ 29 $ 49 $ 14 $ 248 Accrued liabilities 53 1 1,359 37 1,450 Advances from other funds 6I 61 Total liabilities 209 30 1,408 112 1,759 Equity: Contributed capital 2,875 22 2 228 3,127 Retained earnings: Reserved for future claims 3,469 3,469 Unreserved 4,448 649 102 947 6,146 Total equity 7,323 671 3,573 1,175 12,742 Total liabilities and equity $ 7,532 $ 70I $ 4,981 $ 1,287 $ 14,501 78 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN TOTAL EQUITY ALL INTERNAL SERVICE FUNDS Year ended June 30, 2001 (mnounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Techr~ology Total Operating Revenues Charges for services $ 2,485 $ I $ 3,272 $ 930 $ 6,688 Miscellaneous 58 567 45 322 992 Total operating revenues 2,543 568 3,317 1,252 7,680 Operating Expenses Personal s~rvices 529 66 88 452 1,135 Commodities 782 21 2 272 1,077 Services and charges 302 414 4,485 336 5,537 1,613 501 4,575 1,060 7,749 Depreciation 892 23 81 996 Total operating expenses 2,505 524 4,575 1,141 8,745 Operating income (loss) 38 44 (1,258) 111 (1,065) Nonoperating Revenues Interest income 193 34 325 102 654 Income (loss) before operating transfers 231 78 (933) 213 (411 ) Transfers in 4 401 405 Transfers out (168) (221) (33) (422) Net income (loss) 67 78 (753) 180 (428) Total Equity, Beginning 7,008 593 4,326 1,005 12,932 Residual equity transfers in (out) (19) (19) Capital contributed from Government 248 9 257 Total Equity, Ending $ 7,323 $ 671 $ 3,573 $ 1,175 $ 12,742 79 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS Year ended June 30, 2001 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Operating income (loss) $ 38 $ 44 $ (1,258) $ 111 $ (1,065) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 892 23 81 996 Changes in operating assets and liabilities: Accounts receivable (2) 73 7 I lnveutories (3) (3) Accounts and inteffund payables (79) 18 27 43 9 Accrued liabilities 1 (3) 176 4 178 Total adjustments 809 38 276 128 1,251 Net cash flows from operating activities 847 82 (982) 239 186 Cash Flows From Noncapital Financing Activities Operating transfers from other funds 4 401 405 Operating transfers to other fimds (168) (221) (33) (422) Net cash flows from noncapital financing activities (164) 180 (33) (17) Cash Flows From Capital and Related Financing Activities Acquisition and coutstruction of properVd and equipment (2,163) (5) ( 183 ) (2,351 ) Capital contributed 248 9 257 Residual equity transfers out (19) (19) Net cash flows from capital and related financing activities (1,915) (5) (193) (2,113) Cash Flows From Investing Activities Interest on investments 224 34 333 83 674 Net increase (decrease) in cash and cash equivalents (1,008) 111 (469) 96 (1,270) Cash and Cash Equivalents, Beginning 3,882 433 5,432 868 10,615 Cash and Cash Equivalents, Ending $ 2,874 $ 544 $ 4,963 $ 964 $ 9,345 Supplemental Noncash Dis¢[osnres Contributions of fixed assets from government $ 248 $ - $ $ 9 $ 257 80 TRUST AND AGENCY FUNDS The Trust and Agency Funds account for assets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. These fund types are categorized as follows: Expendable Trust Fund Johnson County Council of Governments Trust Fund - accounts for the financial activities of the metropolitan/rural cooperative plarming organization. Agency Fund The City acts as custodian for the following fund: Project Green Fund - accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. 81 CITY OF IOWA CITY, IOWA COMBINING BALANCE SHEET ALL TRUST AND AGENCY FUNDS June 30, 2001 (amounts expressed in thousands) Expendable Agency Trust Fund Fund Johnson County Council of Project Governments Green Total Assets Equity in pooled cash and investments $ 9 $ 263 $ 272 Interest receivable 4 4 Due from other governments 25 25 Total assets $ 34 $ 267 $ 301 Liabilities and Fund Balances Liabilities: Accrued liabilities $ 14 $ $ 14 Due to agency 267 267 Total liabilities 14 267 281 Fund balances: Reserved for Johnson County Council of Governments 20 20 Total liabilities and fund balances $ 34 $ 267 $ 301 82 CITY OF IOWA CITY, IOWA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS Year Ended June 30, 2001 (amounts expressed in thousands) Balance Balance July 1, 2000 Increases Decreases June 30, 2001 Project Green Assets: EquiVd in pooled cash and investments $ 283 $ $ 20 $ 263 lnterest receivable 5 l 4 Total assets $ 288 $ $ 21 $ 267 Liabilities: Due to agency $ 288 $ $ 21 $ 267 Total liabilities $ 288 $ $ 21 $ 267 83 84 OTHER SUPPLEMENTAL INFORMATION CITY OF IOWA CITY, IOWA SUMMARY OF BONDED INDEBTEDNESS DEBT SERVICE REQUIREMENTS TO MATURITY (INCLUDING INTEREST) General Year Ended Obligation Revenue June 30 Bonds Bonds Total 2002 $ 8,341,912 $ 12,084,457 $ 20,426,369 2003 7,605,139 9,649,599 17,254,738 2004 7,579,051 9,653,178 17,232,229 2005 6,707,144 9,505,863 16,213,007 2006 6,568,916 9,507,525 16,076,441 2007-2010 20,217,569 37,977,928 58,195,497 2011-2014 17,066,263 34,494,064 51,560,327 2015-2018 10,777,660 24,226,650 35,004,310 2019-2022 18,975,370 18,975,370 2023-2026 16,810,778 16,810,778 Total $ 84,863,654 $ 182,885,412 $ 267,749,066 86 87 CITY OF IOWA CITY, IOWA GENERAL GOVERNMENTAL* EXPENDITURES BY FUNCTION AND TRANSFERS TO OTHER FUNDS Last Ten Fiscal Years (amounts expressed in thousands) General Fund Fiscal Year Home and Debt Service Ended Community Human Community Policy and Capital & Long-term June 30 ProtectionI Development2 Environment3 Administration4 Outlay Leases. 1992 $ 7,338 $ 4,670 $ 2,528 $ 3,919 $ 625 $ 4 1993 7,597 5,041 2,473 4,068 684 79 1994 8,352 5,507 2,792 4,378 915 1995 8,776 5,558 2,655 4,354 660 1996 9,389 5,849 2,876 4,682 2,181 1997 9,524 6,299 3,252 4,860 1,005 1998 10~310 6,405 3,245 5,477 1,451 ** 1999 10,991 6,552 3,606 5,232 2,232 2000 12,085 7,765 4,499 5,453 2,900 2001 12,337 8,268 5,316 5,493 1,318 Notes: * General Fund, Special Revenue Funds and Debt Service Fund. ** Iu FY99, Housing Authority was reporled as an Enterprise Fund. Includes Pohce, Fire, Housing and Inspection Services and TralT~c Engineering. Includes Recreation, Library, Senior Center, Parks and Animal Control. Slx~cludes Engineering, Streets Mainte~rance, Forestry and Cemetery and Public Works Administration. %cludes Legislative, Executive, Financial Administration, Government Buildings, Escrows, Cleating Accounts and Planning and Community Development. 88 Special Revenue Funds Community Other Shared *~ Development Revenue Employee Housing Debt Transfers to Block Grant and Grants Benefits Authority Service Other Funds Total $ 527 $ 110 $ 47 $ 2~908 $ 2,907 $ 7,333 $ 32,916 764 89 165 4,587 2,380 7,975 35,902 1,519 49 130 3,815 2,348 8,929 38,734 1,674 69 238 5~496 2,367 8,978 40,825 2,615 150 159 6,450 2,519 9,744 46,614 1,758 66 210 4,392 1,963 12,361 45,690 2,235 117 178 4,591 2,727 10,575 47,311 1,802 265 215 3,490 11,466 45,851 1,550 157 145 4,278 13,895 52,727 1,968 226 259 5,304 13,409 53,898 89 CITY OF IOWA CITY, IOWA GENERAL GOVERNMENTAL* REVENUES BY SOURCE AND TRANSFERS FROM OTHER FUNDS Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Licenses Intergov- Ended Property and ernmental Charges for June 30 Taxes Permits Revenue Services. 1992 $ 15,803 $ 452 $ 8,825 $ ],509 1993 16,543 473 10,797 891 1994 17,134 564 ] 1,073 2,563 1995 18,470 605 ] 2,860 2,689 1996 19,255 559 15,001 2,657 1997 19,659 625 12,980 2,804 1998 20,635 651 12,881 2,488 ** 1999 22~153 676 8~372 2,807 2000 24,271 707 9,158 2,850 2001 27,071 689 11,793 2,895 Notes: * Includes General Fund, Special Revenue Funds and Debt Service Fund. * * In FY99, Housing Authority ~vas reported as an Enterprise Fund. 90 Use of Transfers Money and from Property Miscellaneous Other Funds Total $ 649 $ 1,996 $ 4,721 $ 33,955 996 1,925 4,881 36,506 937 1,652 5,907 39,830 1,359 1,574 6,133 43,690 1,306 1,885 6,485 47,148 1,344 1,861 7,068 46,341 1,645 2,057 7,209 47,566 1,076 2,116 7,384 44,584 898 2,243 8,421 48,548 1,080 2,175 7,906 53,609 91 CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash Basis) (araounts expressed in thousands) Percent of Total as Assessment Collection Total Tax Current Tax Budget Delinquent Tax Total Tax a Percent of Year Year Budgeted Collections Collected Collections Collections Current Budget 1990 1991-92 $ 15,567 $ 15,422 99.1% $ 212 $ 15,634 100.4% 1991 1992-93 16,593 16,588 100.0 190 16,778 101.1 1992 1993-94 17,188 17,150 99.8 27 17,177 99.9 1993 1994-95 18,484 18,440 99.8 24 18,464 99.9 1994 1995-96 19,264 19,234 99.8 14 19,248 99.9 1995 1996-97 19,766 19,765 100.0 17 19,782 100. t 1996 1997-98 20,807 20,521 98.6 8 20,529 98.7 1997 1998-99 21,735 21,842 100.5 22 21,864 100.6 1998 1999-00 23,945 23,989 100.2 5 23,994 100.2 1999 2000-01 26,089 25,684 98.4 31 25,715 98.6 CITY OF IOWA CITY, IOWA PROPERTY TAX RATES AND TAX DOLLARS BUDGETED Last Ten Fiscal Years Tax Rates~ Fiscal Agri- Year Total cultural Ended Employee Tort Debt City Land June 30 General Library Benefits Emergency Liability Service Transit Tax Rate Tax Rate 1992 $ 8.100 $ $ 1.927 $ $ $ 2.103 $ 0.540 $ 12.670 $ 3.004 1993 8.100 0.270 1.965 1.541 0.950 12.826 3.004 1994 8.100 0.270 2.073 1.496 0.950 12.889 3.004 1995 8.100 0.270 1.981 1.661 0.942 12.954 3.004 1996 8.100 0.270 1.963 1.709 0.950 12.992 3.004 1997 8.100 0.270 2.133 1.200 0.950 12.653 3.004 1998 8.100 0.270 2.026 1.704 0.950 13.050 3.004 1999 8.100 0.270 1.834 0.111 1.868 0.950 13.133 3.004 2000 8.100 0.270 2.009 0.222 2.300 0.950 13.851 3.004 2001 8.100 0.270 1.955 0.270 0.222 2.990 0.950 14.757 3.004 Tax Dollars Budgeted2 Fiscal Year Agri- Ended Employee Tort Debt cultural June 30 General Library Benefits Emergency Liability Service Transit Land Total 1992 $ 9,934 $ $ 2,364 $ $ $ 2,600 $ 662 $ 7 $ I5,567 1993 10,470 349 2,540 2,000 1,228 6 16,593 1994 10,793 360 2,763 2,000 1,266 6 17,188 1995 11,549 385 2,824 2,377 1,343 6 18,484 1996 11,998 400 2,908 2,545 1,407 6 19,264 1997 12,637 421 3,327 1,892 1,482 7 19,766 1998 12,893 430 3,225 2,740 1,512 7 20,807 1999 13,380 446 3,030 183 3,120 1,569 7 21,735 2000 13,982 466 3,468 381 4,002 1,640 6 23,945 2001 14,296 477 3,451 477 392 5,312 1,677 7 26,089 Notes: rate per $1,000 of taxable valuation. 2Amouats expressed in thousands. CITY OF IOWA CITY, IOWA PROPERTY TAX, ROAD USE TAX AND HOTEL/MOTEL TAX REVENUES Last Ten Fiscal Years (amoums expressed in thousands) Fiscal Year Ended June 30 Property Tax .Road Use Tax Hotel/Motel Tax Total 1992 $ 15,803 $ 3,228 $ 328 $ 19,359 1993 16,556 3,282 306 20,144 1994 17,134 3,493 427 21,054 1995 18,470 3,637 574 22,681 1996 19,255 4,106 464 23,825 1997 19,659 4,253 427 24,339 1998 20,635 4,087 501 25,223 1999 22,153 4,575 570 27,298 2000 24,271 4,928 554 29,753 200l 27,071 4,852 497 32,420 94 CITY OF IOWA CITY, IOWA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY AND EXEMPT PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) Taxable Property Collection Assessed Value/ Assessment Year Ended Estimated Exempt January 1 June 30 Actual Value Property Value 1992 1994 $ 1,602,124 $ 84,432 1993 1995 1,785,207 84,132 1994 1996 1,866,504 96,508 1995 1997 2,146,528 98,450 1996 1998 2,185,167 111,672 1997 1999 2,373,523 114,154 1998 2000 2,423,557 123,068 1999 2001 2,597,827 128,115 2000 2002 2,699,944 136,493 2001 2003 2,920,818 137,713 Source: City of Iowa City Assessor's Office Notes: Properly is massessed 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 and tangible personal property subject to taxation shall be valued at its actual value and, except as otherwise provided, shall be reassessed at 100% of its actual value, and the value so assessed shall be taken and considered as the assessed value and taxable value of the property upon which the levy shall be made. Taxable property includes real property, buildings and structures, industrial plant and fixtures, commemial equipment assessed as real prope~y and utilities distribution property. Exempt property includes all property that is owned by religious and educational institutions, charitable and benevolent societies, low-rent housing and associations for war veterans. Each must apply for property tax exempt status with the City Assessor, who determines if the property qualifies under state guidelines. Exempt property is assessed each year like other taxable property. Propen'y owned by governmental entities is not taxable and is not included in "Exempt Property." 95 CITY OF IOWA CITY, IOWA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (per $1,000 assessed valuation) Iowa City Kirkwood Ratio of Collection School City of Johnson Community State of Iowa City Year District Iowa City County~ College Iowa Total to Total 1991-92 $ 11.081 $ 12.670 $ 5.667 $ 0.502 $ 0.005 $ 29.925 42.3 % 1992-93 11.331 12.826 6.378 0.532 0.005 31.072 41.3 1993-94 12.334 12.900 6.431 0.539 0.005 32.209 40.1 1994-95 12.338 12.954 6.431 0.530 0.005 32.258 40.2 1995-96 12.634 12.992 5.790 0.593 0.005 32.014 40.6 1996-97 12.130 12.653 5.515 0.589 0.005 30.892 41.0 1997-98 12.220 13.050 5.414 0.595 0.005 31.284 41.7 1998-99 12.075 13.I33 5.747 0.567 0.005 31.527 41.7 1999-00 11.696 13.851 5.947 0.613 0.005 32.112 43.1 2000-01 11.833 14.757 5.901 0.607 0.005 33.104 44.6 Source: "Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor. Note: ~Includes Johnson County, the City of Iowa City Assessor and Agricultural Extension levies. 96 CITY OF IOWA CITY, IOWA PRINCIPAL TAXPAYERS AND EMPLOYERS Fiscal Year Ended June 30, 2001 (amounts expressed in thousands) % of Total Taxable Assessed Ten largest taxpayers~ Type of Business Valuation Valuation Mid-American Energy Company2 Public Gas and Electric Utility $ 45,277 1.74 % James & Loretta Clark Apartments 25,667 0.99 Procter & Gamble Manufacturing Company Personal Products Manu£acturing 19,915 0.77 ACT Inc. (formerly American College Testing Program) Educational Testing Service 18,791 0.72 Southgate Development Company Real Estate Developer 16,335 0.63 NCS Learning Corporation Information Services 15,759 0.61 Old Capitol Mall Associates LP Old Capitol Mall Town Center 13,497 0.52 Hy Vee Grocery supermarket 13,322 0.51 Rexam Release International Paper Treatment Manufacturing 12,892 0.50 Edwin & Ethel Barker & Barker Partnership Apartments 12,192 0.47 Total $ 193.647 7,46 % Ten major employers3 Employees University of Iowa 23,648 Iowa City Community School District 1,316 NCS Learning Corporation 1,252 Veterans Administration Medical Center 1,239 Mercy Hospital 1,214 ACT Inc. (formerly American College Testing Program) 1,100 Lear Corporation (formerly United 900 Automotive Technologies) Hy-Vee 843 Gillette Canada (Oral B Laboratories) 731 City of Iowa City 613 Sources: ~City of Iowa City Assessor's Office-2000 Aimual Report - Assessment January 1, 2000, payable 2002 2 State Department of Revenue Iowa Workforce Development 0ncludmg full- and part-time employees) and the respective employer 97 CITY OF IOWA CITY, IOWA SPECIAL ASSESSMENT COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Special Special Ratio of Total Ended Assessments Assessments Collection to Outstanding June 30 Billed Collected Amount Billed Assessments 1992 $ 29 $ 35 120.7 $ 154 1993 28 32 114.3 83 1994 26 45 173.l 65 1995 26 44 169.2 20 1996 36 50 138.9 225 1997 22 80 363.6 145 1998 17 31 182.4 114 1999 15 21 140.0 89 2000 15 32 213.3 57 2001 9 12 133.3 48 Source: Jolmson County Treasurer's Office Note: "Special Assessments Collected" includes amounts received on special assessments, past due assessments and future installments. 98 CITY OF IOWA CITY, IOWA RATIO OF NET GENERAL OBLIGATION BONDED 1)EBT~ TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years (amounts expressed in thousands, except per capita) Debt Payable from Proprietary Assessment and Net General l~tio of Net Net Bonded as of Assessed Gross Expendable Debt Service Obligation Bonded Debt to Debt January I Population Value2 Bonded Debt Trust Funds Fund Balance Bonded Debt Assessed Value Per Capita 1992 59,738 $ 1,602,124 $ 14,550 $ 3,621 $ 807 $ 10,122 6.32:1000 $ 169 1993 59,738 1,785,207 12,650 3,061 504 9,085 5.09:1000 152 1994 59,738 1,866,504 17,790 6,919 285 10,586 5.67:1000 177 1995 59,738 2,146,528 23,655 12,993 504 10,158 4.73:1000 170 1996 59,738 2,185,167 29,430 20,399 655 8,376 3.83:1000 140 1997 60,148 2,373,523 31,390 17,144 643 13,603 5.73:1000 226 1998 60,148 2,423,557 41,675 20,903 616 20,156 8.32:1000 335 1999 60,148 2,597,827 46,165 18,832 347 26,986 10.39:1000 449 2000 60,148 2,699,944 41,190 16,762 192 24,236 8.98:1000 403 2001 62,220 2,920,818 61,565 14,868 494 46,203 15.82:1000 743 Notes: ~General Obligation bonds. zObmined frmn the City of Iowa City Assessor's Office. CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL* EXPENDITURES Last Ten Fiscal Years (amounts expressed in thousands) Total General Fiscal Year Governmental Ratio of Debt Ended Total Expenditures Service to General June 30 Principal Interest Debt Service and Transfers Expenditures 1992 $ 2,080 $ 827 $ 2,907 $ 32,916 .09: 1.00 1993 1,741 639 2,380 35,902 .07: 1.00 1994 1,822 526 2,348 38,734 .06: 1.00 1995 1,808 559 2,367 40,825 .06: 1.00 1996 1,939 580 2,519 46,614 .05: 1.00 1997 1,499 464 1,963 45,690 .04: 1.00 1998 1,988 739 2,727 47,311 .06: 1.00 1999 2,452 1,038 3,490 45,851 .08: 1.00 2000 2,918 1,360 4,278 52,727 .08: 1.00 2001 3,541 1,763 5,304 53,898 .10: 1.00 *General Fund, Special Revenue Funds and Debt Service Fund. 100 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2001 (amounts expressed in thousands, except per capita) Amount Total General % Applicable Applicable Long-Term to the to the Name of Bonded Debt City of City of Governmental Unit Outstanding Iowa City Iowa City Per Capita City of Iowa City $ 61,565 100.00% $ 61,565 $ 989 Iowa City Community School District 8,375 64.29% 5,384 87 Total $ 69,940 $ 66,949 $ 1,076 Per capita assessed value $ 41,752 Source: Johnson County Auditor's Office 101 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 Revenue2 1992 $ 2,430 $ 1,022 $ 1,408 $ 220 $ 385 $ 605 2.33 1993 2,778 1,340 1,438 405 493 898 1.60 1994 3,139 1,291 1,848 445 505 950 1.95 1995 3,205 1,543 1,662 475 476 951 1.75 1996 3,252 1,465 1,787 495 462 957 1.87 1997 3,338 1,950 1,388 525 355 880 1.58 1998 3,822 1,770 2,052 590 322 912 2.25 1999 3,653 1,713 1,940 625 286 911 2.13 2000 3,716 1,861 1,855 675 303 978 1.90 2001 4,309 2,176 2,133 720 1,047 1,767 1.21 Wastewater Treatment Revenues 1992 $ 6,459 $ 1,997 $ 4,462 $ 725 $ 3,025 $ 3,750 1.19 1993 6,137 2,044 4,093 775 2,841 3,616 1.13 1994 6,882 2,467 4,415 1,060 2,287 3,347 1.32 1995 7,244 2,403 4,841 1,165 2,292 3,457 1.40 1996 9,656 2,506 7,150 1,230 2,205 3,435 2.08 1997 11,040 2,739 8,301 1,295 2,923 4,218 1.97 1998 11,066 2,809 8,257 1,490 3,382 4,872 1.69 1999 11,362 2,987 8,375 2,065 3,519 5,584 1.50 2000 11,872 3,259 8,613 2,160 3,691 5,851 1.47 2001 12,824 3,248 9,576 2,505 3,589 6,094 1.57 Water Revenue4 1999 $ 8,571 $ 3~295 $ 5,276 $ $ $ 0.00 2000 9,626 3,384 6,242 299 299 20.88 2001 10,629 3,410 7,219 140 445 585 12.34 Notes: 1Exclndes depreciation and interest. 2Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. 3Wastewater Treatmenl Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 4Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 102 CITY OF IOWA CITY, IOWA DEMOGRAPHIC STATISTICS Median Calendar Per Capita Median Family Education Retail Sales2 Year Population Income A~e Income Level~ (Approx.) 1950 27,212 N/A 25.3 $ 3,245 68.1% $ 34,993,000 1960 33,443 $ 1,914 24.1 5,769 69.5 46,607,000 1970 46,850 3,025 22.6 9,942 82.1 84,322,000 1974 47,744 4,465 23.4 9,942 82.1 125,920,000 1980 50,508 7,247 24.6 22,325 89.5 215,305,000 1990 59,738 13,277 24.8 39,259 93.9 464,800,000 1996 60,148 N/A 24.8 N/A N/A 657,700,000 2000 62,220 N/A 25.4 N/A N/A 756,100,000 U.S. Department of Commerce, Bureau of the Census of Population completing 12 years of lbrmal schooling or more. Retail Sales & Use Report, Iowa Depar[ment of Revenue and Finance. Not Available Fiscal Year School Enrollment Unemployment Ended June 30 Public3 Privaten Rates 1992 9,658 746 2.3 1993 9,830 834 1.9 1994 10,022 878 1.5 1995 10,233 920 3.1 1996 10,448 921 2,7 1997 10,444 850 2.8 1998 10,562 868 2.4 1999 10,592 887 2.5 2000 10,619 924 2.0 2001 10,674 929 2.4 City Community School District private schools Workforce Development Center 103 CITY OF IOWA CITY, IOWA PROPERTY VALUE, BUILDING PERMITS AND BANK DEPOSITS Last Ten Fiscal Years (dollar amounts expressed in thousands) Fiscal Year Property Value~ New Construction Ended Number Value June 30 Real Exempt of Permits of Permits2 1992 $ 1,602,124 $ 84,432 256 $ 31,070 1993 1,785,207 84,132 299 39,592 1994 1,866,504 96,508 345 56,257 1995 2,146,528 98,450 215 40,481 1996 2,185,167 111,672 145 32,943 1997 2,373,523 114,154 161 45,339 1998 2,423,557 123,068 224 34,966 1999 2,597,827 128,115 320 45,381 2000 2,699,944 136,493 277 125,129 2001 2,920,818 13T713 191 79,329 Notes: 1Source: Iowa City Assessor's Office 2Permit values are based on estimated construction costs. 3Local bank offices - Hills Bank & Trust Company, Commercial Federal Savings Bank, Iowa State Bank & Trust Company, Hawkeye State Bank, Firstar Bank, Union Planters Bank, Farmers & Merchants Savings Bank, Federal Employees Credit Union and the University of lowa Community Credit Union. 104 Remodeling Repair and AddRons Total Building PermRs Bank and Number Value Number Value CredR Union of Permits of Permitsz of Permits of Permits Deposits3 374 $ 14,957 630 $ 46,027 $ 748,518 360 9,292 659 48,884 786,882 543 18,812 888 75,069 805,857 436 10,915 651 51,396 854,155 478 10,249 623 43,192 928,208 512 12,536 673 57,875 1,050,620 739 14,880 963 49,846 1,073,583 579 22,618 899 67,999 1,140,367 678 28,677 955 153,806 1,183,757 579 25,101 770 104,430 1,107,410 105 CITY OF IOWA CITY, IOWA PARKING RATES Last Ten Fiscal Years Fiscal On-Street Off-Street CBD Peripheral Commercial Overtime Year End Meters Meters Meters2 Ramps Lots~ Ramp Permits Parking June 30 (per hour) (per hour) (per hour) (per hour) (per month) (per month) Violation 1992 $ 0.30 $ 0.30 $ 0.40 $ 0.40 $ 30 $ 40 $ 3 1993 0.30 0.30 0.50 0.45 ~ 35 45 ~ 3 1994 0.30 0.30 0.50 0.45 a 35 45 a 3 0.50 4 55 a 1995 0.30 0.30 0.50 0.45 3 35 45 3 3 0,50 4 55 4 0.30 ~ 35 s 1996 0.30 0.30 0.50 0.45 ~ 35 45 3 3 0.50 4 55 4 0.30 s 35 s 1997 0.40 0.40 0.60 0.50 3 40 45 ~ 3 0.50 4 55 4 0.40 s 45 s 1998 0.40 0.40 0.60 0.50 a 40 45 ~ 3 0.50 4 55 a 0.40 s 45 s 1999 0.40 0.40 0.60 0.50 ~ 40 45 J 3 0.50 a 55 4 0.40 s 45 s 2000 0.40 0.40 0.60 0.50 3 40 45 s 3 0.50 a 55 a 0.40 ~ 45 s 2001 0.40 0.60 0.60 0.60 3 45 50 ~ 3 0.60 a 60 4 0.50 s 45 _n 0.60 s 60 ~ Notes: ~Employees of the City of Iowa City pay half-price for permits in the peripheral lots. 2CBD refers to Central Business District. ~Dubuque Street Ramp. aCapitol Street Ramp. ~Chauncey Swan Ramp. STower Place Ramp. 106 CITY OF IOWA CITY, IOWA SCHEDULE OF LIABILITY AND PROPERTY INSURANCE IN FORCE June 30, 2001 Limits of Term of Annual Insurance Company Type of Coverage Coverage Policy Policy # Premium Genesis Insurance Company Comprehensive general liability, auto $10 million general 6/00-6/01 YXB300792 $548,745 liability, police professional liability, aggregate - occurrence; ZAB300789 workers' compensation, public officials $100,000 self-insured errors and omissions liability, retention (SIR) and $1,000,000 maximum retention. Blanket building and contents, contractor's $92,175,202 agreed amt. 6/00-6/01 equipment, EDP, auto physical damage, per occurrence; deductible flood and earthquake included at $10 million on property section is sub-limit. $50,000 per event and $250,000 aggregate Old Republic Airport premises liability and ground $5 million/combined single 6/00-6/01 PR16310t $6,596 Insurance Company hangarkeeper's legal liability, limit; $ i million/aircraft Cincinnati Insurance Company Boiler and machinery coverage at twelve $25,000,000 aggregate; 6/00-6/01 BEP 2647657 $4,919 locations. $10,000 deductible Assisted Housing Risk Public Housing Pool: general liability and $1 million per occurrence 1/01-1/02 P100188059 $15,312 Management Association property damage coverage, on liability/S2 million L 100188058 aggregate; $25 million on property damage Fidelity Bonds: Public employees blanket bond $75,000 honesty blanket 6/00-6/03 B80.4dd 877 $6,853 Cincinnati Insurance bond on all employees; Company City Manager $925,000 on named Finance Director positions Assistant Finance Director Senior Accountant - Treasury CITY OF IOWA CITY, IOWA MISCELLANEOUS STATISTICAL DATA Year ended June 30, 2001 Date of incorporation April 6, 1853 Form of government Council/Manager Area 15,840 acres Miles of streets: Paved (approx.) 241 Unpaved (approx.) 8 Number of street lights 2,863 Police protection: Number of stations 1 Number of sworn personnel 74 Fire protection: Number of stations 3 Number of sworn personnel 52 Municipal water department: Number of active accounts 21,061 Average daily consumption (in gallons) 5,717,000 Miles of water mares (approx.) 252 Sewers: Sanitary lift stations (active) 9 Miles of sanitary sewers (approx.) 263 Cemetery 1 Recreation: Municipal parks: Number of parks/public open spaces 50 Number of acres 1,322 Golf courses non-municipal 5 Other municipal facilities: Recreation Center 2 Ball diamonds 29 Soccer fields 25 Tennis courts 12 Swimming pools 3 Senior Center 1 Parking: Parking ramps/spaces 4/2,537 Parking lots/spaces 7/430 On-street meters 901 (continuedj 108 CITY OF IOWA CITY, IOWA MISCELLANEOUS STATISTICAL DATA Year ended June 30, 2001 (concluded) Landfill: Number of charge customers 449 Tons (charge and cash) 97,208 Smfitation: Number of customer s 13,555 Tons 7,905 Library: Number of volumes (approx.) 243,093 Registered cardholders 63,855 Educational Institutions~: Elementary schools 18 Junior high schools 2 High schools 3 Alternative Learning Center 1 Vocational school 1 Community college I University 1 Hospitals 3 City Employees: Permanent 613 Temporary 782 ElectionsZ: Last general election - 2000 Registered voters 42,843 Number of votes cast 30,141 Percentage voting 70.4% Last municipal election - 1999 Registered voters 36,495 Number of votes cast 7,842 Percentage voting 21.5% Source: ~Io~va City Community School District and local private school offices. 2Johnson County Auditor 109 110 Marian Karr From: Carol DeProsse [cdeprosse@earthlink.net] Sent: Thursday, January 17, 2002 2:10 PM To: iagp-johnsoncounty@yahoogroups.com; icprogs@yahoogroups.com; jcnews@yahoogroups,com Cc: Steve_Atkins@iowa-city,org; Marian_Karr@iowa-city,org; Connie_Champion@iowa-city,org; Ross_Wilbum@iowa-city,org; Dee_Vanderhoef@iowa-city.org; jpwhite@co.johnson.ia.us; cthompso@co.johnson.ia.us; mlehman@co.johnson.ia.us; sstutsma@co.johnson.ia.us; pharney@co.johnson.[a.us; tneuzil@co.johnson.ia.us; carolt@[nav.net; Jim Fausett; Harry Herwig; John We[he; Dave Jacoby; Jean Schnake; Tom Gill; Davidfranker@aol.com; goodmat@aohcom; wyoiowa@msn.com; jaleff@home.com; laurenreece67@aol.com; dfs001 @yahoo,corn; pdwvpmsa@aol.com; mary_mascher@legis.state.ia.us; vicki_lensing@legis.state.ia.us; richard_myers@legis.state.ia.us; joe@joebolkcom.org Subject: [jcnews] Iowa Policy ProjectJlnvitation SEE ESPECIALLY THE 1:30 p.m. PRESENTATION BY PETER FISHER. He's the one who has done such a great analysis of the loss of tax revenues to the county, municipalities, and school districts due to Coralville's recent scalp job. Dear Friend: The Iowa Policy Project would like to invite you to a seminar including presentations about new research from our organization. Our seminar will be Saturday, January 26, at the Iowa City Public Library, 123 S. Linn St., Room A, from 1 p.m. to 4:30 p.m. Following is the agenda: IOWA POLICY PROJECT Winter Issues Seminar January 26, 2002 1 p.m. - Introductions and introductory remarks, David Osterberg, executive director. 1:30 p.m. - Peter Fisher, University of Iowa, report on impact of tax cuts on the state budget situation. 2 p.m. - David Swenson, Iowa State University, report on economic implications of alternative energy projects. 2:30 p.m. - Break. 2:45 p.m. - Issue areas for potential research: Iowa state budget and economy; environment; social policies. 3 p.m. - Small-group discussions. 4 p.m. - Reports from groups. 4:30 p.m. - Adjourn. We would like to have an idea of how many people to expect. If you can attend, or if you have any questions, please call our assistant director, Mike Owen, (319) 643-3628, or email at ipp@netins.net. Warm regards, David Osterberg Executive Director [Non-text portions of this message have been removed] ........................ Yahoo! Groups Sponsor ........................ > Tiny Wireless Camera under $80! Order Now! FREE VCR Commander! Click Here - Only 1 Day Left! TIF Stuff Page 1 of 2 Marian Karr From: Carol DeProsse [cdeprosse@earthlink. net] Sent: Friday, January 18, 2002 9:22 AM To: DavidFranker@aol.com Cc: Davidfranker@aol.com; goodmat@aol.com; wyoiowa@msn.com; jaleff@home.com; laurenreece67@aol.com; dfs001@yahoo.com; pdwvpmsa@aol.com; jpwhite@co.johnson.ia.us; cthompso@co.johnson.ia.us; mlehman@co.johnson.iaus; sstutsma@co.johnson.ia.us; pharney@co.johnson.ia.us; tneuzil@co.johnson.iaus; carolt@inav.net; Connie_Champion@iowa-city.org; Ross_Wilburn@iowa-city.org; Dee_Vanderhoef@iowa-city.org; Steve_Atkins@iowa-city.org; Marian_Karr@iowa-city.org; tkriz@co.johnson.ia.us; jhorne@co.johnson.ia.us Subject: TIF Stuff Dave, In reply to your last post: Back in the mid-seventies when I was serving on the Iowa City Council, there were plans to sell all of the city's Urban Renewal land to a single developer. Many citizens were opposed to this but as a council member I was in the minority regarding my opposition. With the best of intentions I believe the city manager, city attorney (John Hayek), and members of the council believed the sale of this land to one person would be legal. One day I picked up the Code of Iowa and read the section on Urban Renewal. It appeared to me that there was another interpretation that could be made and that it might work in the interests of those opposed to the unified sale of this land to a single individual. Three people brought suit against the City of Iowa City (Charlie, Jean, and Harold). They hired a kid out of law school--Bruce Washburn--who had just passed the bar to represent them. He was the only lawyer we could find who would represent this interest. Mori Costantino did fundraising, including getting money from some of the local bank presidents on the idea that "little people needed to have a right to be heard in court" and that if the city were correct then at least the little people would have had their day in court. They also honestly believed the city was right, but Mori can get money from a boulder, believe me.) This was a fast and furious battle in which the defendants felt quite secure in their position. One day some many week down the road the phone rang and it was John. "This is John, Carol, I'm calling to congratulate you." "For what?", I asked. "You won," he said. "Won what?", I asked. "The Urban Renewal lawsuit," he replied. Of course I then started to yell and jump around with joy. Caroline Dieterle, who was working at the Courthouse the day the judge issued his ruling, called Washburn to tell him that he/we had won, "Far, fucking out!", he replied. (Remember, he was still just a punk out of law school.) That night we had a huge party that will be remembered by all present. Pat will remember this intriguing legal tale and I'm posting a copy of this to John because he will be amused by its recounting. Another time, when the big interchange was going in out west of Iowa City where Menards and Walmart are now located, I believed that this should not be done--as was being attempted by the STATE OF IOWA, no less- -without an environmental impact statement being drafted, submitted to the public for comment, etc. Again, a suit was filed, and again, seemingly against the odds of beating the "big guns", the courts ordered an environmental impact statement done. Pat and John will likely remember this, as well. My point here is this: with all good intentions Coralville believes that what they are doing is legal. Their counsel from a big-wig firm in Des Moines, believes it is legal. That however does not necessarily make it so. According to Mr. Owens, Coralville's bond counsel, several other communities in Iowa have done the same thing as Coralville did when they created this gerrymandered TIF district. When what these other communities 1 / 18/02 T1F Stuff Page 2 of 2 have done is looked at more closely, however, it is not the same thing and. in any event, even if it were, the fact that they did it doesn't mean that its been declared legal. It means they did it and no one challenged it to see if it ~vas legal.. This is a prime case of where entities representing various constituencies should come together and share in the costs of determining whether or not the "big guns" are right, or whether the "little people"--the ordinary taxpayers--have a justifiable claim that could turn this around in their favor. I believe that there is a two week period of time in which to file an action after Coralville moves to issue $33,000,000 in GO bonds, which they are likely going to do this coming Tuesday. This two week period of time is set forth in the Code, but there may be other angles to it of which I am unaware. The thought of losing is not the reason one should shy away from challenging this. Not a one of you knows what the courts might find so it is a bit disheartening to hear public utterances by some of you that what Coraville is doing is "legal". In actuality, most lawyers would tell you that the law is very open on this issue, and even Coralville has publicly admitted that this type of financing scheme has "never before been done in Iowa." Many cases regarding TIFs have been lost, but some have been won. If the people lost this one then that in itself would make news. But if the people, won, it would make even bigger news and would be to the financial benefit of thousands of taxpayers, not only in the county, but in the state. A little courage goes a long way m~d I encourage you all to step forward on behalf of the people and seek a judgment on whether or not Coralville's new TIF district, and its accompanying financing mechanisms comply with the laws of the state of Iowa. Thank you. Carol 1/18/02 Marian Karr From: Carol DeProsse [cdeprosse@ear~hlink. net] Sent: Friday, January 18, 2002 12:54 PM To: jcnews@yahoogroups.com; iagp-johnsoncounty@yahoogroups,com; icprogs@yahoogroups.com Cc: jpwhite@co,johnson.ia.us; cthompso@co.johnson,ia.us; mlehman@co.johnsonia.us; sstutsma@co.johnson,ia.us; pharney@co.johnson.ia.us; tneuzil@co.johnson.ia.us; carolt@inav,net; Connie_Champion@iowa-city.org; Ross_Wilburn@iowa-city.org; Dee_Vanderhoef@iowa-city.org; Jim Fausett; Harry Herwig; John Weihe; Dave Jacoby; Jean Schnake; Tom Gill; Steve_Atkins@iowa-city.org; Marian_Karr@[owa-city.org Subject: [jcnews] Stay Current on your Drug Information The Week Online with DRCNet, Issue ~220 -- January 18, 2002 A Publication of the Drug Reform Coordination Network "Raising Awareness of the Consequences of Drug Prohibition" Canadian Hemp Company Files NAFTA Action Against US DEA http://www.drcnet.org/wol/220.html%kenex DRCNet Interview: Colorado Sheriff Bill Masters http://www.drcnet.org/wol/220.html%billmasters National Guard Drug War Budgets Cut This Year, Congressional Hawks Plead for More http://www.drcnet.org/wol/220.html#nationalguard [Non-text portions of this message have been removed] To unsubscribe from this group, send an email to: 3cnews-unsubscribe@yahoogroups.com Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ J )HNSON C®UNTY rii 12:38 2000 James Street, Suite 111 ?~0~,~ d~;¢'~ 18 ~' Coralville, IA 52241 (319) 339-6128 Cji '[/ (il;!.c.~'r(, iOWA IOWA Janua~ 17, 2002 Joe Fowler Director, Parking & Transpo~ation City of Iowa City 410 E Washington St Iowa City, Iowa 52240 Dear Joe: I am responding to your le~er dated, November 26, 2001 regarding the possibility of extending the current contract between Iowa City and Johnson County. I apologize for the delay in responding but as you know, with the holidays and working on our budget as well I could not respond without having some idea of what our operational costs were going to be. I agree with you that it would be beneficial to both the City and County to extend this agreement. However, in your letter you indicated that you had not received a request for an additional $71,416 in funding for FY02 and had a call into the City. Johnson County has not requested additional funds from the city for the move into a new facility or for any other additional capital or technical expenditures, which have taken place since the contract was signed. We agree that those were our expenditures. In my budget presentation for FY02 I indicated that there was an increase of $15,913.50 in revenue from Iowa City in accordance with the contract (the 3% increase). I also indicated that Iowa City Transit would be purchasing a vehicle to replace vehicle 226. Based on the fact the contract to replace damaged vehicles and that during the previous negotiations the vehicles were owned by Johnson Coun~ and replacement had been budgeted by us for this contract term the County should provide the replacement grant funds required for this vehicle. However, due to operational, maintenance and fuel increases and the fact that the vehicles are now owned by Iowa City there does need to be some discussion regarding increased costs of service. After speaking with the Board members it was determined that Carol Thompson, Terrence Nuezil and myself should meet with you and whomever you deem appropriate to meet and discuss these negotiations. If possible, we would like to meet on Thursday, Februaw 14, 2002 at 1:30 p.m. We are open to where you would like to meet; however, I might suggest our facility in Coralville or the Johnson County Administration building, as there is usually plenty of parking. Please let me know if this schedule works for you. Director ~ohnson County Board of SuOorvisor Mombors Iowa City Council Mom~ors Stavo ~tkins, Iowa City Mana~or LETTER TO THE EDITOR IMAGINE. ......... "What would our communities and neighborhoods look like if building sites were first evaluated for their inherent value, including soils, topography, existing vegetation, and not just for view or street access?" (Quote from NATIVE PLANTS, a quarterly publication of the Lady Bird Johnson Wildflower Center, Austin, Texas.) It is unfortunate that Thursday evening's Planning and Zoning Commission meeting was not cablecast live on one of the local access channels. The council chambers were packed with area citizens on both sides of the issue - the proposed Hickory Heights sub-division. There was much public discussion of various points of view. The Commission members showed concern and compassion for all viewpoints. Their knowledge of this proposed area was remarkable. They questioned city staff for additional information. After hearing everyone who wished to speak on this matter, and with the agreement of the developer, they voted to defer a final decision until the Planning and Zoning Commission meeting on February 7. I would like to thank all who participated in Thursday evening's Commission meeting. It was, perhaps, the finest example of local democracy in action in recent memory. I hope this spirit of respect and dignity can be maintained during upcoming discussions and negotiations. It is my hope that a satisfactory conclusion can be negotiated so that everyone comes away a winner, the developer, concerned citizens and the City of Iowa City. Joan Jehle I Ms. Jo~mf¥..Jeh~ I Iowa City l167EJeff~sonSt. 338-5331 ~wa City, lJ 52245 CC: Mr. Gary Watts Planning & Zoning Commission Friends of Hickory Hill Park Hand, d~ereo and recipient requested Council get a copy. Refuse Carts : Pilot Program for Implementation of Automated Refuse Carts Purpose of · To show the advantages of refuse cart use · Presentation of estimated cost Advantages Ergonomics- Back, knee, ankle injury reduction Improve Neighborhood Appearance- Reduce animal mess. Container will ar n Advantages, · Branded serial number on can for tracking · Minimum 10 year warranty Cost - 2002 City will purchase 1000 carts Cost per cart -$55.00 000 Implementation Begin with Outer City Limits Monday · Walnut Ridge Subdivision · Orchard Ct. · Galway Hills Subdivision · Normandy Concerns Cost 1. Who will pay for the container? 2. Will rates increase? REFUSE CARTS