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HomeMy WebLinkAbout2010-01-07 Info Packet1 r ~~ ~,',~ -,,,n,~,w~~ ~~ CITY OF IOWA CITY www.icgov.org CITY COUNCIL INFORMATION PACKET January 7, 2010 JANUARY 11 SPECIAL WORK SESSION IP1 Council Meetings and Work Session Agenda IP2 Summary of Pending Work Session Issues MISCELLANEOUS IP3 Letter from the Interim City Manager to Pelds Engineering: Moss Green Urban Village: Concepts for Negotiation of TIF Development Agreement IP4 Green Lunch and Learn Series [submitted by Interim City Manager Dale Helling] IP5 Memorandum from the City Clerk: National League of Cities meeting IP6 Memorandum from the City Clerk: January 14 Budget Presentations IP7 Final Report for Community Event and Program Funding -Summer of the Arts IP8 Letter from Thomas Walz to Mayor Hayek: Annual Report Extend the Dream Foundation - Uptown Bill's IP9 Memorandum from the Director of Transportation Services: Parking Ramp Energy Efficiency Lighting Grant IP10 Memorandum from the Director of Planning and Community Development: Update: Flood- related activities IP11 Memorandum from the Airport Staff and Airport Commission: 2009 Annual Report IP12 P.A.U.L.A. Report -December 2009 IP13 Proclamation - 2010 Census IP14 Building Permit information December 2009 DRAFT MINUTES IP15 Planning and Zoning Commission: December 14, 2009 IP16 Planning and Zoning Commission: December 17, 2009 COUNCIL PACKETS ONLY AVAILABLE IN CITY CLERK'S OFFICE OR ON LINE (www.icgov.o Comprehensive Annual Financial Report for Fiscal Year ended June 30, 2009 ~ ~ 01-07-09 ""®~~ IP1 ,,,~-,~_ City Council Meeting Schedule and CITY OF IOWA CITY Work Session Agendas January 7, 2010 www.icgov.org • FRIDAY, JANUARY 8 Emma J. Harvat Hall 8:OOa Special Formal- Separate Agenda Posted Breakfast provided Special Budget Work Session (CIP's) and Budget overview Lunch on own • MONDAY, JANUARY 11 Emma J. Harvat Hall 6:30p Special Work Session • Planning and Zoning Items "c " • Agenda Items ^ Parks and Recreation Program Fees (ref agenda #9] • Hazard Mitigation Plan ref agenda #14] ^ Information Packet Discussion (Dec 17, 23 and Jan 7J • Council Time • Budget Priorities • Schedule of Pending Discussion Items info packet #2] ^ Upcoming Community Events/Council Invitations • Discussion of Meeting Schedules • TUESDAY, JANUARY 12 Emma J. Harvat Hall 7:OOp Special Formal Council Meeting TENTATIVE MEETING SCHEDULE SUBJECT TO CHANGE • THURSDAY, JANUARY 14 Emma J. Harvat Hall 7:OOp Special Budget Work Session (Boards/Commissions/Events) • MONDAY, JANUARY 18 Martin Luther King, Jr. Day -City Offices Closed • TUESDAY, JANUARY 19 7:OOp Special Budget Work Session Emma J. Harvat Hall • WEDNESDAY, JANUARY 20 North Liberty 4:OOp Special Work Session -Joint Meeting 7:OOp Special Budget Work Session (wrap up) Emma J. Harvat Hall • MONDAY, JANUARY 25 Emma J. Harvat Hall TBD Special Work Session 7:OOp Special Formal Council Meeting (Continue Work Session if necessary) • MONDAY, FEBRUARY 1 Emma J. Harvat Hall 6:30p City Conference Board (Separate Agenda Posted) Regular Work Session • TUESDAY, FEBRUARY 2 Emma J. Harvat Hall 7.OOp Regular Formal Council Meeting ~ _ i ~~.®dl ,,,,~_,~_ City Council Meeting Schedule and CITY OF IOWA CITY Work Session Agendas January 7, 2010 www.icgov.org • MONDAY, FEBRUARY 15 Presidents' Day -City Offices Closed • TUESDAY, FEBRUARY 16 Emma J. Harvat Hall TBD Special Council Work Session 7:OOp Regular Formal Council Meeting (Continue Work Session if necessary) • MONDAY, MARCH 1 6>30p City Conference Board (Separate Agenda Posted) Regular Work Session • TUESDAY, MARCH 2 7:OOp Regular Formal Council Meeting • MONDAY, MARCH 22 6:30p Special Work Session • TUESDAY, MARCH 23 7:OOp Special Formal Council Meeting Emma J. Harvat Hall Emma J. Harvat Hall Emma J. Harvat Hall Emma J. Harvat Hall IP2 SUMMARY OF PENDING WORK SESSION ISSUES 1 /7/09 Meet with Historic Preservation Commission re: energy efficiency/green issues (after guideline revisions are drafted) (JANUARY) Site of New Animal Shelter (JANUARY/FEBRUARY) Site Options for Proposed Justice Center (JANUARY/FEBRUARY) Inclusionary Zoning and Scattered Site Housing (JANUARY/FEBRUARY) City Manager Search (FEBRUARY 1) Downtown Issues (FEBRUARY) Nuisance Enforcement (FEBRUARY) Farmers' Market -Parks & Rec. Commission Recommendations (MARCH 1) ECICOG Funding -Committee Report (APRIL) Flood Response & Mitigation Update (PERIODIC) Alley Inventory (SPRING `10) Backyard Chickens (SPRING ' 10) ' ~ r , IP3 rW,®~~~ -n.as._ January 6, 2010 CITY OF IOWA CITY City Attorney's OF(ice 410 East Washington Street Pelds Engineering towa city. towa "szz4o-ts26 Attn: Wally Pelds and Jerad Vincent (3 i ~~ 3 s 6- s o 3 0 2323 Dixon (319) 356-5008 FAX Des Moines, IA 50316 www. icgov.org Re: Moss Green Urban Village: Concepts for Negotiation of TIF Development Agreement Dear Mr. Pelds and Mr. Vincent: I am pleased that Moss Green Development Corporation and Eco-4 Partners continue to work with city staff to annex, rezone and install infrastructure necessary to develop approximately 171 acres of real estate north of Interstate 80 and east of Highway 1. This letter outlines a number of terms that the City will require in any TIF Development Agreement between the parties, and the City requests specific information from the developer necessary to allow city staff to evaluate the viability of the project and the use of public funds to support same. The developer has estimated that the costs of infrastructure to support the development (road, water main, storm sewer, utilities, etc.) will require an investment of approximately $10 million, with the infrastructure being installed in two phases. The first phase will be the construction of approximately .75 miles of Oakdale Boulevard at a cost of approximately $5.1 million as is necessary to reach the property to be developed. First, I believe all parties acknowledge that the infrastructure required to support the proposed development is not within the City's Capital Improvements Program (CIP) and the City cannot make any up-front financial contribution to the costs of said infrastructure. Thus, the developer is requesting the creation of a TIF district and the execution of a TIF development agreement whereby the developer will receive incremental tax rebates to "reimburse" the developer for their infrastructure investment provided property taxes are generated from same. The City will require the inclusion of the following terms in any such agreement: 1. The City is providing absolutely no funding up front and all risk of the development's generation of tax revenues sufficient to reimburse the infrastructure costs is borne by the developer 2. The plans, specifications and alignment of the road and other infrastructure shall be approved by the City Engineer and shall be constructed in accord with City public works' standards 3. The City proposes to agree to reimburse the infrastructure costs from tax increments generated within the TIF district in an amount not to exceed apre-agreed maximum or a term of years, whichever comes first. These terms will be negotiated based on the projected amount of increased property tax revenue generated by the project as discussed below. 4. The City will rebate to the developer no more than 50% of the incremental property taxes paid into the Moss Green Urban Renewal Area TIF account in any one tax year (based on a fiscal year from July 1 to June 30) January 6, 2010 Page 2 Finally, and more importantly, prior to creating a TIF district over the property and/or entering into a development agreement, the developer must provide proof of the developer's financial ability to complete the project, which proof must be in the form of a specific financial commitment by a financial institution acceptable to the City indicating financial backing to install the necessary infrastructure. This financial commitment may take the form of a letter of credit, a line of credit, bond or other indicia of ability to finance the project. As this project potentially involves a substantial commitment of public funds, the City requests detailed projections as to the amount of increased property tax revenue and/or jobs to be realized as a result of the project. This information will allow city staff to evaluate the viability of the project and determine whether the use of public funds to support same is in the public interest. I will await your financial projections and financing commitment prior to directing staff to complete an urban renewal plan, TIF district and TIF development agreement. I look forward to receiving this information and documentation so this project may proceed. Very truly yours, Dale Helling Interim City ManagE cc: Jeff Davidson, Director, PCD Wendy Ford, Economic Development Coordinator Bob Miklo, Senior Planner Karen Howard, Associate Planner Eleanor Dilkes, City Attorney Sarah Holecek, First Assistant City Attorney Sara Hektoen, Assistant City Attorney Ron Knoche, City Engineer IP4 Dale Helling From: Karen Jennings Sent: Wednesday, December 23, 2009 8:28 AM Subject: Green Lunch and Learn Series Please review the following announcement from Jen Jordan and Maeve Clark. Do you want to learn more about the environmental initiatives going on across City operations? Starting in January 2010, various divisions and departments will host a "green lunch and learn" series at noon on the last Friday of each month. Each lunch will feature a 15 or 20 minute presentation or tour and then we'll have time to eat lunch (bring your own, please!), chat and brainstorm for future topic ideas and locations. Please join us! And don't forget to ask others in your department to carpool. Please call Jen Jordan (887-6160) or Maeve Clark (887- 6004) with any questions. Sponsored by ECO Iowa City. 2010 29-Jan locations Iowa Cit Public Libra Room B to ics ECO Iowa Cit hosts Maeve Clark, Jen Jordan 26-Feb Iowa Cit Public Libra Room B reenhouse as emissions Brenda Nations 26-Mar Cit Hall room TBD alternative trans ortation Kris Ackerson 30-A r Water Treatment Plant water treatment Ed Moreno 28-Ma South Wastewater Treatment Plant wastewater treatment Dave Elias 25-Jun Iowa Cit Landfill and Rec clin Center landfill overview Jen Jordan C G` C ~~ , /_' / -- 0 - C~•-(P 12/28/2009 i r ~_.:.®~~ ,~' ~III~ ,`~ ~-. ~®~~~ CITY OF IOWA CITY 1P5 MEMORANDUM DATE: January 5, 2010 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk ~' RE: National League of Cities meeting Registration is available for the National League of Cities Congressional City Conference in Washington, DC March 13-17, 2010. I have attached some information on the conference. Please let me know if any of you are interested in attending. Key federal policy issues that will be addressed at the conference include: "` • Ensuring full economic recovery for cities and towns • Partnering to rebuild the nation's infrastructure • Fostering regional and local economies • Coordinating federal and local energy efficiency and conservation efforts • Promoting sustainable development in communities • Protecting public safety resources The National League of Cities provides the resources, the connections, and the collective power to help cities and towns have an impact in Washington. The Action Plan Sunday, March 14 City officials gather at the Marriott Wardman Park Hotel for leadership meetings, policy discussions, and legislative briefings to learn about current federal issues and priorities for America's cities and towns. Monday, March 15 NLC's leaders and general session speakers set the stage for the action to come by outlining the opportunities and challenges and building capacity to make a difference with Congress on key federal issues. Tuesday, March 16 The President and his Cabinet members and Congressional leaders are invited to discuss their priorities and ways in which Washington can partner with cities and towns to meet the challenges facing the country. The program will wrap up with the opportunity to review NLC's federal legislative agenda and confirm plans for Capitol Hill visits on Wednesday. Wednesday, March 17 -City Lobby Day City officials travel to Capitol Hill for meetings with their congressional delegation to advocate for NLC's priorities far federal action and how America's cities and towns can partner with the federal government to help the nation achieve its goals. ~~ In tough economic times... ...Targeted information about federal programs can help you bring new resources into your community. ... Up-to-date briefings from federal officials can keep you ahead of the curve about new federal laws and regulations. ...Meetings with your representatives in Congress can keep your city's challenges and innovations front and center in Washington. .~ ...Training sessions can provide you with the skills you need to lead your community through today's fiscal environment and achieve your ~' community's vision for tomorrow. Don't miss these Opportunities... Come to Washington, March 13 -17, to join America's cities and towns as we forge a strong partnership with the Administration and Congress. With economic recovery underway, but full recovery for cities still a long way off, both the Administration and Congress will continue to have significant impact on the future of our communities. At the conference, city officials will have the opportunity to learn about federal issues important to America's cities and towns, to lobby Congress on those priorities, and to be a part of the unified voice we present to the Administration and Congress. The conference program will include general sessions featuring national leaders, members of the Administration and Congress, workshops to learn more about key issues and NLC's federal policy positions, and a chance to flood Capitol Hill and advocate in favor of federal priorities for America's cities and towns. ember fhe other hoA ers hotel. '^' TRIP T~. Preliminary Schedule The Conference will provide a range of education, networking, and strategy sessions to maximize the value of the event for city officials. This preliminary schedule provides an outline of major events during the conference to help delegates make travel plans. National League of Cities CONGRESSIONAL o CITY CONFERENCE o Saturday, March 13 12:15 p.m. -1:30 p.m. Roundtable Networking and Lunch 9:00 a.m. - 5:00 p.m. Leadership Training Institute Seminars 1:45 p.m. - 3:15 p.m. 3:30 p.m. - 4:30 p.m. Workshop Sessions General Session 1:30 p.m. - 5:00 p.m. - 6:45 p.m. m 5:30 p City Futures Panel Meetings Orientation to the National League of Cities 5:00 p.m. - 6:30 p.m. State League Caucuses and Receptions . . for First Time Attendees Constituency and Special Group 5:30 p.m. - 7:00 p.m. Constituency and Special Group Meetings Meetings/Events Sunday, March 14 Tuesday, March 16 9:00 a.m. - 5:00 p.m. NLC Board of Directors Meeting 7:00 a.m. - 8:30 a.m. -10:15 a.m. 8:45 a m Steering Committee Work Sessions General Session NLC Advisory Council Meeting Leadership Training Institute Seminars . . 10:30 a.m. -Noon Workshop Sessions Policy and Advocacy Committee Meetings 12:15 p.m. -1:30 p.m. Roundtable Networking Lunch 5:15 p.m. - 7:00 p.m. Constituency and Special Group Meetings 1:45 p.m. - 3:15 p.m. 3:30 p.m. -4:45 p.m. Workshop Sessions Closing General Session March 15 Monda y 5:15 p.m. - 6:30 p.m. State League Caucuses and Receptions , 6:30 p.m. - 8:00 p.m. Reception and The Capitol Steps 7:30 a.m. - 9:00 a.m. Celebrate Diversity Breakfast 9:00 a.m. -10:30 a.m. Opening General Session Wednesday, March 17 10:45 a.m. -12:15 p.m. Workshop Sessions 7:00 a.m. - 3:00 p.m. Capitol Hill Visits Special Events Monday, March 15 Celebrate Diversity Breakfast -Fee: $35 7:30 a.m. - 9:00 a.m.The 24th annual Celebrate Diversity Breakfast will feature a keynote speaker who will provide a perspective on diversity issues facing America's cities and towns. The breakfast is sponsored by NLC's five constituency groups. "Each delegate, guest, speaker, member of the press, and any other conference participant must register. There is a $100 youth delegates fee. There is no charge for press registrations with proper press credentials. " No telephone registrations or cancellations will be accepted. Hotels Tuesday March 16 ~ If you need hotel accommodations, please check the appropriate box on the _ registration form. Reception and The Capitol Steps 6:30 p:m. - 8:00 p.m. "NLC will make a hotel reservation for you when you register for )he conference.,, The Capitol Steps are an entertainment troupe of former Congressional employees ~ Rooms will be assigned on a first come, first served basis. that will provide bi-partisan fun for everyone. - .~ Oates to Remember Pre.-Confe~~++rence L eat ~~i~p_ ~~raning February f5,-2010 -headline for advance registration and housing ~nst/tllte a7em;rnars requests. RII requests must. be postmarked by this date. After this date, regular lnformation pertaining to the pre-conference Leadership Training~ristitute registration fees apply. Seminars being,held Saturday, Mamh13 and Sunday, Match 14; is available on the NLCwebsite at www.nlcorg February 15, 2010 -Deadline for Cancellations. Cancellation must be ~ P - .. made in wrifing and`postmatked by this date. All canceTlatioris are subject to a ' $75 cancellation fee. There are no refunds for cancellations after this date. How to Register To register for the 2010 Congressional City Conference, fill out the registration form and return it with your check, city purchase order, or credit card information to NLC Meeting Services, postmarked by February 15, 2010 or register online at www.nlc,org. IP6 ~:,r,®~ CITY OF tC~WA CITY. ~in~~`t E1V[aRA M DATE: January 7 2010 TO: Mayor and City Council FROM: Marian K. Karr, City Clerk RE: January 14 Budget Presentations Council set aside the budget work session of January 14th to hear from Community events and City Boards & Commissions regarding their FY11 City budget request. An invitation was sent to all organizations and City staff of all Boards/Commissions. The following schedule reflects responses to this invitation and was prepared to include a 10 minute oral presentation followed by a five minute question period. Presenters should plan on arriving 10 minutes ahead of their assigned time. Community event organizations were asked to prepare a final report after their event. Three were received (Iowa City Community String Orchestra; Riverside Theatre Shakespeare Festival; Irving Weber Days/Johnson County Historical Society) and are attached to their budget application. ORGANIZATION 7:00-7:15 Airport Commission 7:15-7:30 Senior Center Commission 7:30-7:45 Parks & Recreation Commission 7:45-8:00 Library Board 8:00-8:15 Youth Advisory Commission 8:15-8:30 ADA Celebration 8:30-8:45 Landlocked Film Festival 8:45-9:00 Summer of the Arts 9:00-9:15 Backyard Abundance 9:15-9:30 Johnson County Historical Society/Irving Weber Days 9:30-9:45 Tippie Business School General Budget Discussion Budget Presentations Page 2 Attachments: Community event applications (previously distributed 12/17 info packet) Page 89 from the Proposed Financial Plan. cc: City Board and Commission Staff (minus attachments) Community Events Applicants (minus attachments) s/budgetbdcommschedule.doc Attachments omitted. See 1/14/10 Council Work Session meeting folder for updates. FINAL REPORT ~OR COMMUNITY EVENT AND PROGRAM FUNDING **THIS FORM MUST BE TYPED*" Name of event/program: Summer of the Arts Date(s) of eventlprogram: May 2009 -September 2009, Funding received from the City for this event/program: $_60,000 Location of event/program: Downtown Iowa City Name of organization: Summer of the Arts Contact person: Lisa Barnes, Day Phone: 337-7944 Mailing address: Street: 221 YZ E. Washington St., Ste. 303 City: Iowa City Zip: 52240 Estimated number of attendees: 100,000, Describe the eventlprogram and all activities that occurred: (see attached) How did this program/event benefit the Iowa City area? 1) SotA Events drew approximately 100,000 to downtown Iowa City for the Jazz Festival approximately 30% of attendees are from out-of-town bringing in tourism dollars to the community' 2) SotA Events build community by removing barriers encouraging diversity and team building activities 3) Estimated total impact of Arts Dollars to our commurnty = $2,194,000.00; 4) Many of our events feature local musicians artists and food vendors bringing additional revenue to these local individuals and groups We also provide numerous opportunities for the young people of the area to perform in a variety of environments including musical performances dance theater and martial arts demonstrations. Major Expenses Description Amount Staff $86,000 Office overhead $37,500 O erations & Promotion $108,000 Entertainment $126,300 Misc. Ex enses $25,000 Total Budget for EvenUProgram $360,300 IP7 -......_ CITY OF IOWA CITY Revenue Sources Description' Amount City Funding $ 60,000 Grants $19,000 S onsors $157,750 Donations $37,000 Sales & Vendor Fees $91,200 Total Funding for Program $364,950 'List public aria private organizations, sale or sterns, eic. Signature: ~~~ ~~ Title: Executive Director Date: 12/30/09 This application must be filled out completely. If more space is necessary an additional page may be submitted. Please submit this form to the City Manager's office within 30 days upon conclusion of your event/program. Dale E. Helling, Interim City Manager City Hall 410 E. Washington Street Iowa City, IA 52240 Please call the City Manager's Office at 356-5010 if you have questions. FINAL REPORT FOR COMMUNITY EVENT AND PROGRAM FUNDING Summer of the Arts 2009 Completed 12/30/09 by Lisa Barnes, Executive Director Festivals: A. Friday Night Concert Series -May 21-September 11 featuring Johnson-County based musical acts with a wide variety of styles. Each week approximately 1000 people filled the Pedestrian Plaza to hear some of the best local musicians. Two bands were rained out and offered to play in September for free. B. Free Movie Series -June 13 -August 22 featured a variety of feature films drawing approximately 300-500 people weekly. C. Iowa Arts Festival -June 5-7; estimated attendance 35,000 • National Musical Acts on the Main Stage June 5 & 6 • Local Musical Acts on the Main Stage June 6 during the day • A wide variety of performers on the Family Stage June 6 & • Global Village on June 6 teaching kids about other cultures • Children's Day on June 7 featuring a variety of interactive activities for kids • Fine Art Fair with 145 regional and local artists on June 6 & 7 • Culinary Row featuring a variety of local food vendors offering cuisine from different cultures D. Iowa City Jazz Festival -July 3-5; estimated attendance 40,000 • National, regional and local musical acts on the Main Stage July 3-5 • Local and Regional musical acts on the three side stages -Youth, College and Local • Culinary Row featuring a variety of local food vendors offering cuisine from different cultures • Approximately 10-15 Arts and craft booths E. Sand in the City -August 28-30; estimated attendance 15,000 • Featured 12 teams who built sand sculptures for the public to vote on their favorites (team-building) • Musical entertainment featuring local bands (including the Friday Night Concert Series performance) • A Kid's Zone with both free and paid activities including a large "sand pit" for the kids to play in (geared toward younger families and kids more than other festivals) • Culinary Row featuring a variety of local food vendors offering cuisine from different cultures The Big Read -January 31-early March This program will provide a variety of activities to encourage leisure reading in the Johnson County Area. We received a grant from the National Endowment for the Arts and Arts Midwest to hold this program in Iowa City. Partner organizations include: • Johnson County Senior Center • City Circle Acting Company • Iowa City Community School District and Regina High School • Iowa City Area Chamber of Commerce • Johnson County Historical Society • Kirkwood Community College • Oakdale Correctional Facility Activities will include: • Junior High/High School Student activities • Theatre group performances • Ray Bradbury film festival • Promotion through local businesses • Book discussion groups • English-as-a-second-language activities with Spanish speaking adults • Intergenerational activities • A keynote presentation • Panel discussions EXT b THE REAM FOUNDATION ~ UPTOWN BILL'S Dear Matt, IP8 4oi S Gilbert St. Iowa City, IA 5zz4o Congratulations on your selection as mayor of our great city. I look forward to your leadership in the coming years. It is amazing to realize we (the Extend the Dream Foundation) are soon to complete our ninth year as anon-profit serving persons with disabilities. Even I have been struck by how well things have gone. This is our year to turn the corner of sustainability - we will be hiring a new Director in July, we have a contract for accounting services to help us professionalize our financial management and we hope to fund the purchase of a permanent location for Uptown Bill's small Mall, our most successful social service venture. We are giving support to dozens of people with disabilities and dozen more of people struggling with recovery issues on a daily (365 days a year) basis. I plan to stay on as a volunteer after a new paid director is hired for as long as my health and worth to the organization continues. I have enclosed a copy of our eighth annual report for your scrutiny and a notice of a memoir I have written as a fund raising ei~ort for the Foundation. I have appreciated your support over these past years. Sincerely~,~e~--` ,,.. .~~ _. .,.~'~r ,~° _ T om s Walz, Executive Director, Extend the Dream Foundation 1/5/10 0 ~~ ~~ ~~ =a ~ :~r-- a d..q ~ ~ -~ 'i tV ~.t ,. .. a Extend the Dream Foundation 8th Annual Report INTRODUCTION This is the eighth year since Extend the Dream Foundation (EDF) opened the small Mall at 401 S. Gilbert St., though its history dates back to the founding of Wild Bill's Coffee Shop in 1974 on the University of Iowa campus. Since 2001, the project has grown from the four initial micro-enterprhe othertbuildmgssinclude the eCommer e Center at 2203 F out among three buildmgs. T St. and the Mick's Workshop buildings at 2218-2220 F St. The EDF organization is part of the legacy of Bill Sackter, a mentally challenged man who came to Iowa City in 1974, soon to become the proprietor of his own Wild Bi11s~Coffee Shop on the UI campus. Little then did we know that he would go on to become the subject of three major films (Bill, Bill On His Own, and A Friend Indeed: the Bill Sackter Story) and the inspiration for our program. EDF was founded to carry on the work of helping persons with disabilities gain independence via employment through entrepreneurship, and continues to move forward in the tradition and spirit of Bill Sackter. THE EXTEND THE DREAM MISSION The mission of EDF is to help low income persons- those. with disabilities as well as retired elderly- launch and operate micro-enterprises of their choosing, and through a supporting volunteer and media program inform the public on the general issues pertinent to aging and disability. GOVERNANCE Asa 501 C-3 non-profit organization, EDF is governed by a 14 member board of directors, chaired by Jeff Edberg (commercial realtor). Other directors include Mercedes Bern Klug (social work professor), Mitch Rotman (research assistant), Charles Skaugstad (business owner), Jeff Larson (investor), Jeff Portman (rabbi), Kevin Mellerj bM nlyn Anne Leahy (assistant county attorney), Phil Jones (retired academic officer , Austin (public assistance coordinator), Carol Fisher (retired social worker), Eugene Mathews (retired missionary), Anne Galbraith (student), Kelly Anne Kampe (student), Barry Morrow (screen writer) and the Board consultant ,Darryl Wyrick (president emeritus of The University of Iowa Foundation} . CURRENT MICRO ENTERPRISES ,,~ _ _o The Organizational Chart above shows the nine businesses and related proj~tha~'e operated through the Extend the Dream Foundation., along with the namese cent `"' owners. --+~ ~' °^~~-"' Two of the businesses were 2008-09 start-ups: Matt's Music Shoppe and the~clc~' House Media Productions. One small business, the Framery, closed dorm pert/ d• w w PROFIT AND LOS'S PICTURE All of the micro-enterprises, except one, operate as non-profit enterprises under the tax exempt status of EDF. Not all are expected to be profit producing, since the purpose of their enterprise is "service" to the disability group and the community, or what we call social entrepreneurship. While the goal is to sustain and support the small businesses and their sponsors through earnings, this is viewed collectively, rather than by the profitability of each individual enterprise that operates under the EDF umbrella. The following summarize the profit and loss of each ofthe active businesses: Uptown Bill's Ice Cream and Coffee Shop Gross Income: 28,922.95 Gross Expenses: 30,192.30 Net Income: -1,269.25 Bill's Bookmark Gross Income: 13,841.14 Gross Expenses: 14,568.68 Net Income: -727.54 Mad Hatter Room Gross Income: 6,596.34 Gross Expenses: 6,471.00 Net Income: 125.34 Sackter House Media Productions Gross Income: 1,209.46 Gross Expenses: 1,442.31 Net Income: -232.85 e Antique Shoff/Mick's Workshop Vintaa~ ,.~, ~ Gross Income: 86,510.21 ~ ;° Gross Expenses: 89,121.28 ` Net Income: -2,611.07 ~ n'~ ~ -r r•; i a~ RAMP-Chore ~ .,~ Gross Income: 52,106.16 q`~ ~ Gross Expenses: 53,474.89 ~ ~ rv Net Income: -1,368.73 w Matt's Music Gross Income: 1,504.60 Gross Expenses: 1,028.50 Net Income: 476.10 2 TOTAL INCOME FROM ACTIVE BUSINESSES ............................ $190,690.86 In addition, the EDF Operating Account received and expended funds to and from a variety of sources, as follows: Extend the Dream Foundation Operations Office Gross Income: 72,035.05 Gross Expenses: 50,128.21 Net Income: 21,906.84 Below is a revenue table for the active businesses, comparing total income between the 2008-09 fiscal year and the preceding 2007-OS period: Fiscal Year Comparison 07-08 & 08-09 Gross Revenue Coffee Shop Bookmark Mad Hatter SH Media Vintage/Workshop Ramp Music t': --s C'3 ~ --~ t`~ ~~ o~ ^ 2007-08 C*7 2008-09 N 0 0 ~• z -v r .a w ~.o 3 p 50000 100000 OTHER INCOME In addition to the earnings, deficits in some areas (Small Mall) are addressed through fund raising and grants. Among the major funding sources 2008-09 are the following: Grants City of Iowa City .......................................$2000 Community Foundation of JC ..........................2500 Johnson Co. Board of Supervisors ....................7200 Pilot Club ..................................................300 Optimist Club ................................................800 St.Thomas More Church ...................................400 Total Grants .....................................................................$13.200 Fund Raisers River Run (student sponsored race} ...................$15,000 I Envision (charity golf tournament) ....................500 Total Fundraisers ...................................................................$15.500 Individual donations General Operations (including film) .................................... $29,100 TOTAL OTHER INCOME(grants, fund raisers and donations) ................$57,800. REVENUE BREAKDOWN BY SOURCE: 6%. 12 Earnings Donations Grants Fundraisers N d o ~+ ~ ~~~ ~ ~ -°i C'3 ~ ~„ ~ 3 ~ '=° N 4D ON VOLUNTEERS For the past eight years we have operated the EDF program without relying on paid staff. Partly this was by necessity, partly by philosophy. We wanted the community to partner with the owners and employees with disabilities to operate and sustain their businesses Volunteers provided a total of 6,740 hours of service in 2008 - 2009. Members of the general community contributed 4,740 hours, persons with disabilities 500 hours, and students another 1500 hours. Breakdown of Volunteer Hours by Source: Community 7% Disabled Student ,,,,, 0 p o ~~ _~ "a ' i yam.. --i C ~ `..... ~~ ~~ ~ SV ~' GJ ON SPECIAL PROJECTS In addition to its mission of small business development, the EDF also has taken on several other responsibilities: 1. Management of the Sackter House: a rent to own new home owned by several persons with disabilities and managed by EDF. 2. Providing the personnel with disabilities for Wild Bill's Coffee Shop at the University of Iowa. 3. Sponsor of annual Ralston Creek Fair and Flea Market 4. Promotion of the new documentary "A Friend Indeed: the Bill Sackter Story" ~. 5 ON EQUITY AND LIABILITIES At the end of June, 2008, the equity asset profile can be summarized as follows: 1. Savings Account - $49,000 2. Investment Account - 25,000 3. Equity Ecommerce building - $150,000 4. Equity in hick's Workshop buildings - 50,000 5. Vehicles owned (4) - 10.000 6. Workshop equipment - 7.500 7. Inventory - $30,000 (all businesses) Major Liabilities 4 1. Mortgage Ecommerce - $50,000 ~::.~ ~~ 4 ~- z 2. Mortgage hick's Workshop - $107,000 ~~ ~ .~ 3. Line of Credit (movie) - 19,000 ~ E-, ~ ~ 4. Line of Credit (hicks) - 7,000 ~~ -,~ o~ ~ ~' ~ lf~ ON STAFFING There were nine principal staff (owners/managers), the majority of whom have served three or more years. The only new "owner" was Matt Sparks, of Matt's Music. Davcid Morice transferred from co owner of the Bill's Bookmark to Editor in Chief of the Sackter House Media Productions. One of the noteworthy strengths of this group was their continuity, ranging from 3 years to 8 years in their positions. These are independent conractors who work on a partial profit share basis. In addition there were nineteen other persons who received pay during their year for their Assignments in staffmg the ~contractorslwho work on a regular schedule otheBrs are job Coffeeshop. Some are regular specific workers. The eCommerce training project has three additional independent contractors who work part time in instructing the Internet sales classes. Payment for contract services averages about $4500 a month SUMMARY OF ~GHI,IGHTS A) TWO NEW BUSINESSES STARTED (EDF) B) FIVE NEW PUBLICA ENINGS OF DOCUMENTARY FILM C) FOUR SPECIAL SCRE ~ FAIR AND FLEA MARKET D) RECORD ATTENDANCE 8TH ANNU E) SPECIAL AWA ~~H OF ARNINGIS~ n`I T~ SELL BUSINESSES F) CONTINUED GR STRATEGIC PLAN FOR 2009 - 2010 1. Locate an alternative building for Small Mall enterprises with attention open to expanding student services. 2. Explore means of staffing EDF through finding ways to employ an associate director and finance person. 3. Continue to promote the new documentary, pursing exposure through national media. 4. Explore opportunities to underwrite a "micro-finance" program for graduates of the eComrnerce training program and others interested in small scale self employment. 5. Develop grants fund a community television program on disabilities. ON INFORMATIONAL SOURCES Directors email address: thomas-walz@uiowa.edu EDF web site: uptownbills.org Documentary web site: billsackter.com address: 401 S. Gilbert St, Iowa City, Iowa 52240 ili 0 ng Ma Sackter House Media Productions website: ~~~ ~ ~~ ~~ ~ -=-t ca Q` ~~ na ~'~ k ~:< ~ .~;.; ~_ ~. i i ~~, E3. ~.~ ~" v: O ~a. 0 0 N Chi` a N QJ ^ ~ N ~ G `/J ~ ~ ;n ca,., ^~ U flk ~ Q G C C P--- T~ ~ a.~ ~ y ' cn ~' ~ G ~ ~ ~ ~*" e, d: y : ~ ~ bf~ P . ~ ~ ~ ~ O ?yo ~ ~ V ~ r-. ~ ~ ~ C '°, cam-. bA C ~ 9 ~}- '°' ~ tom..`' i. QJ .~ 1 C ~~`-. J ~ _ L ~ ~ • ~ ~ u - -_.~ c^- r NEW BOOK ORDER FORM SACKTER HOUSE MEDIA PRODUCTIONS 401 S. Gilbert St., Iowa City, Iowa 52240 To order "Memoirs of a Maverick Professor" by Tom Walz complete the following and return with check or money order. NAME ADDRESS CITY AND STATE/ZIP Email address Phone Check below: 1. Single copy @ $25, post paid ( ) 2. Multiple copies @$20 each ( ) No. of copies ( ) 3. Copy (ies) should be signed ( ). If copies are to be signed to a specific person (s) please give needed information: Thank you for your purchase. Proceeds to Sackter House Media, a non profit book publisher, specializing in books by or about persons associated with disabilities. cr` c~ ~ ~ ~~ ~ ~~ ~ °- ` ;~= ~ ~~ `° ~~ ~ ~~ Q v e~ N -~ _ i~ r CITY OF [O1NA CITY ~P9 ~~®~ ~'-`~~~~~~ E~QRANDU~ Date: January 6, 2010 To: City Council From: Chris O'Brien, Transportation Services Director Re: Parking Ramp Energy Efficiency Lighting Grant The City of Iowa City's plan to upgrade lighting systems in its public parking ramps has gotten approval from the State of Iowa Office of Energy Independence, which awarded the City approximately $419,000 to help pay for part of the project. The grant will be used to replace older lighting fixtures with more energy-efficient LED lighting in two City-owned ramps. LED lights last twice as long, require less maintenance, and use less electricity. The City has already completed installation of LED lighting in the Court Street Transportation Center ramp. Next, the lighting in four additional ramps -Capitol Street, Dubuque Street, Chauncey Swan, and Tower Place -will be replaced with LED technology. A new parking facility that is planned as part of a new multi-purpose building to be built on the old St. Patrick's School site will also feature LED lighting. The projects are part of a City-wide effort to invest in and implement green, sustainable practices which often also provide substantial cost savings. Staff believes this project may also encourage local businesses and residents to follow suit by investing in new, environmentally friendly technology. Cost of the total lighting project is $1,257,000 with an estimated $419,000 coming from the grant. In addition, the City anticipates receiving rebates from MidAmerican Energy Company for energy conservation improvements, although the amount of the rebate cannot be calculated until the projects are completed. Staff estimates that the cost savings from the new lights will be so significant that the City will recoup the balance of the projects in just four years. After that, the City will continue to save money on electricity bills with the LED lighting technology. The grant is part of approximately $40.5 million that is being allocated for projects across Iowa to help create an economically viable and environmentally sound energy future by reducing per capita energy consumption by at least 25% by the year 2012. Funds were made available through the American Recovery and Reinvestment Act. Feel free to contact me at Chris-OBrien@iowa-city.org, or by phone at 356-5156 with any questions. Cc: Kris Ackerson Marcia Bollinger Jeff Davidson Wendy Ford Rick Fosse Dale Helling Jennifer Jordan Brenda Nations John Yapp r ~~'I_,=,®~~ CITY OF IOWA CITY IP10 ~' ~~- ~V 1 E~(~R1~1~ Dl~ M Date: January 6, 2010 To: City Council From: Jeff Davidson, Director of Planning and Community Development Re: Update: Flood-related activities The second round of demolitions is almost complete with 6 of the 7 homes being demolished. To date, 28 properties have been purchased in the Parkview Terrace and Taft Speedway areas. Out of the 28 properties, 18 have been demolished. Iowa City is just a few days away from closing on their first acquisition in Parkview Terrace using Community Development Block Grant funds. Offers have already been sent to 8 homeowners with the rest of the offers being sent in the next few weeks. Staff continues to review Jumpstart applications for disbursing State Jumpstart 2 and State Jumpstart 3 funding for housing rehab/repair, down payment assistance and interim mortgage assistance. A total of $1.42 million in State Jumpstart funding has been used to assist 65 flood- impacted residential households and $802,000 in Federal Jumpstart funding has been used to assist 17 households. #- :rui1i.~~ CITY OF IOWA CITY IP11 MEMORANDUM Date: January 6, 2010 To: City Council, Dale Helling, Rick Fosse, Jeff Davidson From: Airport Staff and Airport Commission Re: 2009 Annual Report We are pleased to present to you the Iowa City Municipal Airport 2009 Annual Report. The Iowa City Municipal Airport has completed the extension and reconstruction work on the runway system at the Iowa City Municipal Airport. This effort was accelerated with the award of an economic stimulus grant which provided funding for the Last reconstruction project. We took forward to continuing our improvement program to the airport in 2010. Respectfully, ichael Tharp, C. Operations Specialis Iowa City Municipal Airport CC: Airport Commission Iowa City Municipal Airport 2009 Annual Report Executive Summary The Iowa City Municipal Airport is owned by the City of Iowa City, and operated by the Iowa City Airport Commission which is appointed by the Mayor and City Council of Iowa City, Iowa. The Iowa City Municipal Airport houses 84 aircraft which are maintained in: 59 T-hangars, 1 maintenance facility, 4 corporate hangars, 1 corporate building and 1 Fixed Based Operation (FBO) maintenance hangar. Two runways of 5004 (7-25) and 3900 (12-30) feet are used to contain approximately 36,000 operations annually. Based on a 2009 Iowa Department of Transportation Economic Impact Study, the Iowa City Municipal Airport contributes $11.2 million and 115 jobs in the local economy. The Iowa City Municipal Airport operations budget for FY09 shows income of $423,968 and expenses of $340,527 with additional expenses from FY09 carried over into FY10. Due to the national economic downturn, operations at the airport declined with fuel sales falling from approximately 9% as compared to FY2008 levels. General Levy support for operations for FY09 was $130,000. The Iowa City Municipal Airport received funds for capital projects from the Federal Aviation Administration, and the Iowa Department of Transportation. These funds are used for projects which maintain and enhance the facilities at the Iowa City Municipal Airport. In FY09 the Iowa City Municipal Airport received 2 federal grants for projects. The Airport Improvement Program (AIP) provided $1.7 million for the fiscal year. The Iowa City Municipal Airport was one of only three airports in the state to be awarded an Economic Stimulus grants, and received $1.8 million. Both of these grants were used to finished the phased replacement of the airport's two runways. Additionally $182,000 has been received from the Iowa Department of Transportation to use in the airports pavement maintenance and rehabilitation plans. The City of Iowa City, and the Airport Commission partnered together to create and market the Airport Commerce Park. In 2009 we have noted success in that area and approximately 50% of the area has been sold. Funds from the sales of land have been used to repay the original infrastructure debt which originally placed the road and utility services to the area. The Iowa City Airport Commission has completed its planned reconstruction and extension of the runways at the Iowa City Municipal Airport. Projects now will focus on enhancing services and community involvement. The following projects are planned in the future: 1) a parallel taxiway to the primary runway 7-25, which will allow lower instrument approach minimums; 2) an expanded apron for parking during high traffic events; and 3) additional hangar space to better accommodate all sizes of aircraft using the Iowa City Municipal Airport. Iowa City Municipal Airport -Annual Report 2009 Page 2 AIRPORT BACKGROUND The Iowa City Municipal Airport is located approximately 2 miles southwest of downtown Iowa City. The immediate controlling responsibility for the Iowa City Municipal Airport is given to the Iowa City Airport Commission. The Airport Commission consists of five voting members, who are directly responsible for the planning, operation, and budget of the Iowa City Municipal Airport. The Commission works collaboratively with Iowa City's elected officials and staff to ensure safe, efficient, and effective use of the airport to support Iowa City and the surrounding area. The Iowa City Municipal Airport is one of the busiest general aviation airports in the Iowa with over 35,000 flight operations annually. It is currently home to approximately 84 based aircraft located in 59 T-Hangars, and 6 corporate hangars. These aircraft are used for charter flights, corporate activity supporting local business, flight instruction, rental, pleasure, and charity purposes. Additionally, thousands of flights in and out of the airport support important community activities such as the organ transplant program and Air Ambulance flights at The University of Iowa Hospital and Clinics, as well as economic development for the area. Local businesses that also utilize the airport include ITC Midwest, Kum & Go, Family Video, Lear Corporation, among many others Existing airport facilities include 2 runways, the terminal building, a maintenance facility, hangars, and aircraft fueling facilities, aircraft parking, tie down apron and vehicle parking area. Runway 7-25 serves as the primary runway with a length of 5004 feet. Runway 12-30 serves as a secondary crosswind runway and has a length of 3900 feet. The airport terminal building, built in 1951, includes a pilot's lounge with wireless Internet access, a weather briefing room, a lobby, a classroom, vending machines, a meeting room, and administration facilities for airport management and a fixed based operator. The airport has a rotating beacon and lighted wind indicator. The airport is equipped with a remote communications outlet (RCO) and Automated Surface Observation System (ASOS). The airport has been an important element in the Iowa City community since 1918 and in 1944 was placed under the control of the Iowa City Airport Commission by public vote. Since that time, the airport has remained under the governance of the Airport Commission with fiscal support from the City of Iowa City. The airport is included in the National Plan of Integrated Airport Systems (NPIAS). The NPIAS identifies the Iowa City Municipal Airport as a general aviation airport. As a designated NPIAS airport, the federal government currently provides funding annually for eligible capital improvement prof ects at the airport. The State Aviation System Plan identifies the Iowa City Municipal Airport as an Enhanced Service Airport. Enhanced Service airports are classified as airports which serve nearly all general aviation aircraft and are economic and transportation centers for the state. Several businesses and University of Iowa enterprises are stationed at the airport. Jet Air, Inc. is the fixed base operator with 26 employees, offering charter flights, flight instruction, aircraft sales, rental, maintenance, fuel, and sale of aviation related merchandise. Hertz Corporation serves local visitors and the surrounding area with rental cars available directly at the airport. Numerous faculty members at the University of Iowa College of Engineering use the airport for Iowa City Municipal Airport -Annual Report 2009 Page 3 federally funded research on aviation technology and atmospheric weather phenomena. This research is primarily based out of the Operator Performance Laboratory located in building H and includes 7 full-time staff and 5 full-time student workers. AIRPORT VISION STATEMENT "The Iowa City Municipal Airport, through the direction of the Airport Commission, will provide a safe, cost-effective general aviation airport that creates and enriches economic, educational, healthcare, cultural, and recreational opportunities for the greater Iowa City area." AIRPORT MISSION STATEMENT "The mission of the Iowa City Municipal Airport is to support the strategic goals of the City of Iowa City and meet the needs of stakeholders." AIRPORT AND THE COMMUNITY In a continuing effort to develop and maintain a relationship with the community, numerous community events are held at the airport. The SERTOMA fly-in pancake breakfast and car show headlines the annual events and was held August 30, 2009. This event raises funds for use by the Service to Mankind (SERTOMA) organization. Several thousand people attend this event which served nearly 2500 breakfasts. The Iowa City Aerohawks held its annual winter radio controlled aircraft swap meet in January which is one of the largest meets in the Midwest. This event takes place in the large maintenance hangar. ECONOMIC IMPACT STUDY In 2009, the Iowa Department of Transportation conducted an Economic Impact Study for the general aviation airports in the state of Iowa. That study determined that the Iowa City Municipal Airport has an economic impact value that contributes 115 j obs and $11.2 million worth of economic activity. Approximately $32 million in annual payroll is paid for the 115 jobs which are linked to the Iowa City Municipal Airport. Based on the economic activity, Iowa City Municipal Airport ranks as the 4th largest general aviation airport in Iowa (IDOT "Iowa Economic Impact of Aviation 2009") Iowa City Municipal Airport -Annual Report 2009 Page 4 C~IRECTIifVt71P~E~T I i~l1~l.JCELI I TUTAL tin-Airport Activity G~n~eral Aviation Visitors Total tin-Airport Activity and ~~noral Avratit~n Visitors C)n-Airport Activity and ~~n~rai Aviation 37.5 ~~.~ ~6~.0 40. (~ 17.0 51. ~ 77.5 37.5 715.0 * Source: Iowa DOT, "Iowa Economic Impact of Aviation BUDGET The Airport Commission and staff continue to maintain an efficient operating budget which provides the necessary services and repairs to support the airport infrastructure. The City of Iowa City contributes funds to the airport for operations that totaled $130,000 for FY2009. FY2010 estimates show the operations support to be $116,000 and then dropping to $100,000 for FY11 and beyond. FY2009 also began the restructuring of the maintenance operations at the airport as the long time maintenance employee retired. This retirement enabled the Airport Commission to re-evaluate the maintenance operations and examine different methods of completing the basic tasks of mowing, snow removal and general maintenance repair to the airport. As a result, the Airport Commission entered into a contract with Jet Air to provide for the maintenance and cleaning services for the airport. This served to both lower the costs of maintaining the airport facility and to increase the numbers of maintenance workers without increasing the operating budget. The final expenditures from the Airport Operations budget total $340,527 though some other expenses have been carried over to FY2010 to be included with a state grant award for pavement maintenance. The Airport's revenue totaled $423, 968 but saw a nearly 9% reduction in fuel sales from 2008 levels, as a result of the shrinking national economy. Overall revenue increased above expectations due to refunds from MidAmerican Energy for costs associated with the sales of property in Airport Commerce Park. Iowa City Municipal Airport -Annual Report 2009 Page 5 Fuel Sales Commissions 25000 20000 15000 10000 ^ Estimated ~ 5000 ^ Actual 0 ~ 0 ^ Difference FY05 FY 6 FY07 FY08 FY09 FY10 -5000 -10000 -15000 Fiscal Year Operations at the airport have fallen significantly as compared to previous years as a result of both the downturn in the overall economy and the extensive reconstruction work which required closure of both runways for periods during the peak flying season. Revenue affected by this downturn is seen through the fuel sales at the Airport. ECONOMIC STIMULUS AWARD On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (Recovery Act, a/k/a "the stimulus"). The Recovery Act specifically includes $1.3 billion for projects and programs administered by the FAA. These programs will protect and promote j obs through construction projects at airports and investments in FAA's air traffic control infrastructure. The Iowa City Municipal Airport became one of three airports in the state to receive funds from this act. These funds provided $1.8 million to accelerate and finish the reconstruction of Runway 12-30 in 2009. To date $1.6 million of those funds have been expended and it has created over 7000 hours of additional construction work at the airport. AIRPORT PROJECTS Major airport projects are funded with partnerships from either the Federal Aviation Administration or the Iowa Department of Transportation. Federal grants contribute 95% of the prof ect costs and are typically associated with maj or pavement rehabilitation and upgrades. State grants fund 70-85% of project costs, and are typically associated with minor pavement and facilities repairs and upgrades. On average for every $1 used as a local match by the airport, the airport is able to generate $20 dollars worth of improvements. Iowa City Municipal Airport -Annual Report 2009 Page 6 FY2009 saw the majority of the reconstruction phase activity which replaced the remaining portions of runway 7-25 as well as the entire runway 12-30. Following these projects the runways have some new dimensions accordingly as detailed in the Airport's master plan with Runway 7-25 measuring 5004x100 feet and Runway 12-30 measuring 3900x75 feet. These projects also included the reconstruction of the intersection of the two runways which resulted in a near shutdown of airport operations. All fixed wing operations were shut down for several weeks. The Airport Viewing Area continues to be a work in progress. Phase 1 was completed with the installation of a covered shelter and walk way, as well as some picnic tables for users to enjoy time outside and to watch the aircraft which utilize the airport. Bike racks have been installed in the nearby parking lot to provide a place for bicycle traffic to rest. Planning for more equipment to be in the area continues and calls for the construction of an observation deck as well as additional historical information displays. AVIATION COMMERCE PARK The Airport, with city staff, continues efforts to develop land available in the North Airport Commerce Park. Funds received from the sale or lease of this land have been used to pay off city incurred debt for costs associated with the improvements of that land. The University of Iowa purchased Lot 5 for use in relocating the University Aircare helicopter facilities near the airport. This lot sold for $225,000 and resulted in the payoff of the infrastructure loan that was made initially to improve the area's marketability. FUTURE AIRPORT ACTIVITIES/PROJECTS The Iowa City Municipal Airport continues to plan for the future. Utilizing state and federal grants, as well as local improvement money, the Airport continues to refurbish and replace existing facilities and expand operational capability. The Iowa Department of Transportation has awarded the Iowa City Airport with a grant of $182,155 to be used for pavement maintenance projects at the airport. This will be enhanced by Iowa City Municipal Airport -Annual Report 2009 Page 7 nearly $60,000 of funds from the pavement maintenance funds that were saved in FY2009 and FY2010 for maintenance work around the airport. Enhanced Global Positioning System (GPS) approaches are scheduled for Iowa City with the opening of the new runway. These approaches utilize the newest technology Wide Area Augmentation System (WAAS) and will benefit the Iowa City Municipal Airport with more precise approaches by aircraft. Pilots using this technology will be able to utilize the airport with lower weather minimums increasing safety levels significantly. This approach was created and published in January 2009. ~ - ~:~ , ~. ~ s FAA Grant Pre-Applications are due annually in December and the airport will continue on its planned rehabilitation schedule by submitting applications for parallel taxiway to runway 7-25 The Iowa City Airport Commission has received several comments from the public regarding space constraints. The Airport is examining different ways to ease the space constraints. Specifically, shortages are currently being felt in large aircraft storage, airport maintenance equipment storage, and small to mid-size aircraft storage. The Iowa City Airport Commission has begun the review and update of the 5 year strategic plan which will carry the airport forward from FY2011-FY2015. Staff from the Planning and Community Development office are assisting the Commission with this report. The Airport Commission will continue to maintain and strengthen its relationship with City Council, staff, and the surrounding community by keeping a focus on the mutual goals for the Iowa City Municipal Airport. Iowa City Municipal Airport -Annual Report 2009 Page 8 Airport Staff Michael Tharp, C.M., Operations Specialist Airport Commission Janelle Rettig, Chairperson Howard Horan, Secretary Greg Farris Minnetta Gardinier John Staley Respectfully Submitted, Janelle Rettig, Chairperson Iowa City Municipal Airport -Annual Report 2009 Page 9 IP12 Iowa City Police Department P.A.U.L.A. Report -December 2009 (Possession of Alcohol Under Legal Age) Business Name (occupancy] Monthly Totals Year-to-Date Totals PAULA Visit (occu anc loads u dated Oct 'os) visits arrests visits arrests ear-to-date 808 Restaurant & Nightclub [176] 1 0 43 43 1.000 Airliner [223] 1 ' 0 39 22 0.564 American Legion [140] 3 0 6 0 0.000 Aoeshe Restaurant [156] Atlas World Grill [165] i 8 0 0.000 Blackstone [297] 2 0 3 0 0.000 Bluebird Diner [82] ~ BIUe MOOSe (opened OCT; formerly Industry) 2 0 3 0 ~'~~~ Bob's Your Uncle [260'] Bo-James [200] 31 1 0.032 Bread Garden Market & Bakery [?] [It's] Brothers Bar & Grill [556] 4 2 84 32 0.381 [The] Brown Bottle [289] Buffalo Wild Wings Grill & Bar [189] 1 ', 0 4 0 0.000 Cafe Z [56] Caliente Night Club [498] copenea MnR> 1 1 32 1 0.031 Carl & Ernie's Pub & Grill [92] 11 0 0.000 Carlos O'Kelly's [299] Chipotle Mexican Grill [119] [The] Club Car [56] 1 0 11 0 0.000 Colonial Lanes [502] Dave's Foxhead Tavern [87] 3 0 0.000 David's Place (aka Dawit's) [73] 6 0 0.000 DC's [120] 26 8 0.308 [The] Deadwood [218] 1~ 0 11 0 0.000 Devotay [45] ' !~ 1 0 15 0 0.000 s Pub [49] Donnelly [The] Dublin Underground [57] 1 0 12 0 0.000 [Fraternal Order of] Eagle's [315) i~ 2 0 0.000 EI Dorado Mexican Restaurant [104] [BPO] Elks #590 [205] EI Ranchero Mexican Restaurant [161] Englert Theatre [838] _ Etc [178] 2 0 38 47 1.237 Fiesta Mexico (aka Farras) [200] ', 13 0 0.000 [The] Field House (aka Third Base) [420] 3 6 75 141 1.880 Firewater [114] 4 1 0.250 Formosa Asian Cuisine [149] 'i 6 5 0.833 George's Buffet 75] ' 5 0 0.000 Givanni's [158] Godfather's Pizza [170] Graze [49] 3 0 0.000 Grizzly's South Side Pub [265] 2 0 12 1 0.083 Guido's Deli [20] Hawkeye Hideaway [94] 8 0 0.000 [The] Hilltop Lounge [90] 7 0 0.000 IC Ugly's [72] 10 0 0.000 India Cafe [100] [The] Industry [436] 20 0 0.000 Jimmy Jack's Rib Shack [71] 3 0 0.000 Joe's Place [281] 1 0 20 0 0.000 Joseph's Steak House [226] Kamodo Klub [144] ~~ 8 1 0.125 Kandv Land (1201 3 0 12 0 0.000 Karaoke La Reyna [78] 1 0 0.000 La Casa [300] La Re na [49] 1 0 0.000 Linn Street Cafe [80] ', Los Cocos [99] ' 86 0 0.000 Los Portales [161] Martini's [200] ' 17 0 0.000 Masala [46] Mekong Restaurant [89] Micky's [98] 1 0 8 0 0.000 [The] Mill Restaurant [325] ' 3 0 0.000 [Loyal Order ofJ Moose [476] Y _ Monica's Italian Bistro & Pizzeria [160] [Sheraton] Morgan's [231] 3 0 0.000 Motley Cow Cafe [82] Okoboji Grill [222J Old Capitol Brew Works [294] ' S 0 0.000 One-Eyed Jake's [299J 36 36 1.000 One-Twenty-Six [105] Oyama Sushi Japanese Restaurant [87] Pagliai's Pizza [113] _ Panchero's (Clinton St) [62] Panchero's Grill (Riverside Dr) [95] Piano Lounge [65) 11 1 0.091 [The] Picador [261J 10 0 0.000 Pints [180] 1 0 40 11 0.275 Pit Smokehouse [40] Pizza Hut [116] Pizza Ranch [226] Qualit Inn/Highlander [971] Quinton's Bar & Deli [149] 12 0 0.000 [The] Red Avocado [47] Rick's Grille & Spirits [120]_ 2 0 0.000 _ Riverside Theatre [118] Saloon [120] ' 9 1 0.111 Sam's Pizza [174] 4 0 0.000 [The] Sanctuary Restaurant [132] 3 0 0.000 Shakespeare's [90] 4 0 11 0 0.000 Short's Burger & Shine [56] 9 0 0.000 Sports Column [400] 4 6 65 95 1.462 Studio 13 [206] 12 0 0.000 [The] Summit [736] 2 5 83 167 2.012 Sushi Popo [84] 1 0 0.000 Takanami Restaurant [148) 2 3 1.500 TCB [250] 1 0 35 0 0.000 Thai Flavors [60] Thai Spice [91] Tropicana (aka Club Furia) [280] 43 1 0.023 T. Spoons [102] Union Bar [854] 2 3 63 65 1.032 VFW Post #3949 [197] 1 0 1 0 [The] Vine Tavern [170] 6 0 0.000 Vito's [320] 4 3 43 12 0.279 Wig & Pen Pizza Pub [154] ___ 3 0 0.000 [Iowa City] Yacht Club [206] ! 13 0 0.000 Zio Johno's Spaghetti House [94] Z'Mariks Noodle House 47 Totals: 50 ' 26 1235 695 0.563 Other PAULA at non-business locations: 8 PAULA Totals: 34 819 "includes outdoor seating area cunenrmonm yaa~-~o-~e~a City of Iowa City PROCLAMATION IP13 Whereas, the U.S. Census Bureau is required by the Constitution of the United States of America to conduct a count of the population and provide a historic opportunity for the City of Iowa City to help shape the foundation of our society and play an active role in American democracy; and Whereas, The City of Iowa City is committed to ensuring every resident is counted; and Whereas, more than $300 billion per year in federal and state funding is allocated to communities and decisions are made on matters of national and local importance based on census data, including healthcare, community development, housing, education, transportation, social services, employment and much more; and Whereas, census data determines how many seats each state will have in the U.S. House of Representatives as well as redistricting of state legislatures, county and city councils and voting districts; and Whereas, the 2010 Census creates hundreds of thousands of jobs across the nation; and Whereas, every Census Bureau worker takes a lifetime oath to protect confidentiality and ensure that data identifying respond or their household not be released or shared for 72 years; and Whereas, a united voice from businesses, government, community-based and faith-based organizations, educators, media and others will allow the 2010 Census message to reach a broader audience, providing trusted advocates who can spark positive conversations about the 2010 Census. Be it further resolved, we ask our citizens and local organizations to partner together to achieve an accurate count; and that we encourage people in Iowa City to participate in events and initiatives that will raise overall awareness of the 2010 Census and increase participation among all populations. NOW, therefore, be it resolved that I, Regenia D. Bailey, Mayor of the City of Iowa City support the goals and ideals of the 2010 Census and will disseminate 2010 Census information to encourage participation. ~~s~ ~~ ,,~ ,~1°~~" Re is D. Bailey, Mayor Signed in Iowa City, Iowa, this 23`d day of December, 2009. BUILDING PERMIT INFORMATION December 2009 KEY FOR ABBREVIATIONS .Type of Improvement ADD -Addition ALT -Alteration REP -Repair FND -Foundation Only NEW -New OTH -Other type of construction Type of Use: RSF -Residential Single Family RDF -Residential Duplex RMF -Three or more residential RAC -Residential Accessory Building MIX -Mixed NON -Non-residential OTH -Other Page : 2 Clty Of IOWA Clty Date : 1/4/2010 Extraction of Building Permit Data for To : From : 12/ 1 /2009 12/31/2009 Census Bureau Report Tune Tune Permit Number Name Address Imnr Use Stories Units Valuation BLD09-00579 PATHWAYS, INC. 817 PEPPERWOOD LN ADD MIX 2 0 $400,000 ADDITION AND ALTERATION FOR MIXED USE BUILDING Total ADD/MIX permits : 1 Total Valuation : $400,000 BLD08-00590 BETHEL AFRICAN METHOD 411 S GOVERNOR ST ADD NON 1 0 $500,000 ADDITION AND REMODEL FOR CHURCH Total ADD/NON permits : 1 Total Valuation : $500,000 BLD08-00659 PHYLLIS H MILLER 1851 MELROSE AVE ADD RMF 0 0 $5,000 Conrete ramp Total ADD/RMF permits : 1 Total Valuation : $5,000 BLD09-00678 CHARLES E HEATH 145 GLENN DR ADD RSF 0 0 $160,000 New permit to complete existing job Total ADD/RSF permits : 1 Total Valuation : $160,000 BLD09-00651 GRANDVIEW LLC 332 S LINN ST #408 ALT MIX 0 0 $20,000 ALTERATION OF APARTMENT FOR RMF Total ALT/MIX permits : 1 Total Valuation : $20,000 BLD09-00460 CITY OF IOWA CITY 80 STEPHEN ATKINS DR ALT NON 2 BASEMENT STORAGE AREA BLD09-00689 LUCAS ELEMENTARY 830 SOUTHLAWN DR ALT NON 1 SPECIAL NEEDS RESTROOM BLD09-00679 ENT MEDICAL SERVICES 2615 NORTHGATE DR ALT NON 0 CONVERT PATIENT EDUCATION ROOMS TO EXAM ROOMS BLD09-00675 LARRY BELL 1565 S GILBERT ST ALT NON 1 RESTROOM FOR COMMERCIAL BUILDING BLD09-00680 LEASH ON LIFE 432 HIGHWAY 1 WEST ALT NON 1 WALL OPENING INTO ADJACENT TENANT SPACE FOR ADDITIONAL STORAGE Total ALT/NON permits : 5 Total Valuation 0 $88,057 0 $41,000 0 $16,000 0 $10,000 0 $1,200 $156,257 BLD09-00652 ALLEN HOMES INC. 104 WEST SIDE DR ALT RMF 3 0 $75,000 CONVERT 12 PLEX APARTMENTS INTO CONDOMIUM UNITS FRONT ENTRY ADDITION Total ALT/RMF permits : 1 Total Valuation : $75,000 BLD09-00664 MARLYS BOOTS & MARGA 2610 E COURT ST ALT RSF 0 0 $65,000 REMODEL 1ST FLOOR KITCHEN AND BATHROOM FOR SFD Page : 3 City of Iowa City Date : 1/4/2010 Extraction of Building Permit Data for To : 12/1/2009 Census Bureau Re ort From : 12/31 /2009 p ~_ Twe Permit Number Name Address Imur Use Stories Units Valuation BLD09-00682 BIG TEN HERKY LLC 816 CYPRESS CT ALT RSF 0 0 $45,000 BASEMENT FINISH, ALTERATION AND DECK FOR SFD BLD09-00648 BOB HALL 748 GRANT ST ALT RSF 0 0 $37,900 REMODEL AND ADD PATIO DOOR FOR SFD BLD09-00618 RYAN NIVER 743 TIPPERARY RD ALT RSF 0 0 $10,000 BASEMENT FINISH FOR SFD BLD09-00660 JOHN D'AGATA 648 S GOVERNOR ST ALT RSF 0 0 $9,000 ADD 2 BATHROOMS TO SFD BLD09-00700 TOM & JULIE SWANK 55 REDBUD PL ALT RSF 0 0 $4,000 REPLACE INTERIOR BASEMENT WALL WITH BEAM BLD06-00344 ANDY & RENEE MILLER 1628 HOLLYWOOD BLVD ALT RSF 0 0 $1,050 CONVERT CARPORT INTO ATTACHED 1 CAR GARAGE FOR SFD Total ALT/RSF permits : 7 Total Valuation : $171,950 BLD09-00658 CITY OF IOWA CITY 4748 420TH ST SE NEW NON 0 0 $369,630 193 FEET MONOPOLE ANTENNA TOWER AND EQUIPMENT BUILDING Total NEW/NON permits : 1 Total Valuation : $369,630 BLD09-00641 ALLEN HOMES 104 WEST SIDE DR NEW RAC 1 0 $175,396 DETACHED GARAGES FOR TWELVE PLEX 8 CAR AND 10 CAR GARAGES Total NEW/RAC permits : 1 Total Valuation : $175,396 BLD09-00656 GRANT & MARTA VAN BE 315 WOOLF AVE NEW RSF 2 1 $575,000 SFD WITH ATTACHED 2 CAR GARAGE BLD09-00632 HENDRICKSON ENT INC 2 MARIETTA AVE NEW RSF 1 1 $435,698 SFD WITH ATTACHED 2 CAR GARAGE BLD09-00673 BARRON SWENNING 4020 BUCKINGHAM LN NEW RSF 2 1 $321,080 SFD WITH ATTACHED 3 CAR GARAGE BLD09-00624 DREW & JUDY DILLMAN 845 NORMANDY DR NEW RSF 2 1 $301,787 NEW SFD WITH ATTACHED 2 CAR GARAGE ELEVATED ABOVE FLOOD LEVEL BLD09-00610 CHANGE BUILDERS LLC 1038 TIPPERARY RD NEW RSF 2 1 $291,922 SFD WITH ATTACHED 3 CAR GARAGE BLD09-00655 SWARTZ, TWILA D 50 HICKORY PL NEW RSF 2 1 $258,718 SFD WITH ATTACHED 2 CAR GARAGE BLD09-00672 SOUTHGATE HOMES 4121 RUTH ST NEW RSF 2 1 $250,000 SFD WITH ATTACHED 2 CAR GARAGE BLD09-00662 BELKNAP CONSTRUCTION 3422 DONEGAL CT NEW RSF 1 1 $223,212 SFD WITH ATTACHED 3 CAR GARAGE BLD09-00696 ARLINGTON DEVELOPMEN 256 ARLINGTON DR NEW RSF 1 1 $216,054 SFD WITH ATTACHED 3 CAR GARAGE BLD09-00663 ARLINGTON DEV INC 28 COLCHESTER DR NEW RSF 1 1 $204,946 SFD WITH ATTACH3ED 3 CAR GARAGE Page : 4 City of Iowa City Date: 1/4/2010 Extraction of Building Permit Data for To : 12/ 1 /2009 From : 12/31/2009 Census Bureau Report Tune Tune Permit Number Name Address Impr Use Stories Units Valuation BLD09-00627 ANISTON VILLAGE LP 341 WESTBURY CT NEW RSF 2 1 $203,413 ZERO LOT LINE SFD WITH ATTACHED 2 CAR GARAGE PUBLIC FUNDS BLD09-00628 ANISTON VILLAGE LP 343 WESTBURY CT NEW RSF 2 1 $203,413 ZERO LOT LINE SFD WITH ATTACHED 2 CAR GARAGE PUBLIC FUNDS BLD09-00629 ANISTON VILLAGE LP 351 WESTBURY CT NEW RSF 2 1 $203,413 ZERO LOT LINE SFD WITH ATTACHED 2 CAR GARAGE PUBLIC FUNDS UNIT HR BLD09-00630 ANISTON VILLAGE LP 353 WESTBURY CT NEW RSF 2 1 $203,413 ZERO LOT LINE SFD WITH ATTACHED 2 CAR GARAGE BLD09-00690 ARLINGTON DEVELOPMEN 59 WHITECHAPEL DR NEW RSF 1 1 $186,827 SFD WITH ATTACHED 3 CAR GARAGE FINISHED BASEMENT REC ROOM BLD09-00691 ARLINGTON DEVELOPMEN 69 WHITECHAPEL DR NEW RSF 1 1 $175,432 SFD WITH ATTACHED 3 CAR GARAGE BLD09-00670 CAPITAL BUILDERS INC 2476 INDIGO DR NEW RSF 1 1 $154,580 SFD WITH ATTACHED 2 CAR GARAGE PUBLIC FUNDS BLD09-00692 ARLINGTON DEVELOPMEN 310 ARLINGTON DR NEW RSF 1 1 $153,612 SFD WITH ATTACHED 3 CAR GARAGE FINISH FAMILY ROOM AND BATH IN BASEMENT BLD09-00429 CAPITAL BUILDERS INC 35 THISTLE CT NEW RSF 1 1 $148,401 SFD WITH ATTACHED 2 CAR GARAGE-PUBLIC FUNDS When permit fees are paid please contact Mike Marling for release of Temporary elect pole Total NEW/RSF permits : 19 Total Valuation : $4,710,921 BLD09-00669 PHIL LAUNSPACH 18 S VAN BUREN ST REP MIX 2 0 $900 REROOF MIXED COMMERCIAL/RESIDENTIAL BUILDING Total REP/MIX permits : 1 Total Valuation : $900 BLD09-00684 PATRICIA N WADE 1545 WILLOW CREEK DR REP NON 1 0 $110,000 Fire repair BLD09-00671 WEST DES MOINES STATE I 229 S DUBUQUE ST REP NON 0 0 $81,000 REROOF COMMERCIAL BUILDING Total REP/NON permits : 2 Total Valuation : $191,000 BLD09-00667 THOMAS GILL FIRE REPAIR OF DUPLEX UNIT 1103 -OS PICKARD ST REP RDF 0 0 $36,700 Total REP/RDF permits : 1 Total Valuation : $36,700 BLD09-00643 SOUTHGATE DEVELOPMEN 1956 BROADWAY ST # 9A REP RMF 0 0 $2,000 DECK REPAIR FOR RMF UNIT BLD09-00661 AVA BARDACH 415 S VAN BUREN ST REP RMF 0 0 $1,200 STAIR REPAIR FOR RMF City of Iowa City Page : 5 Date : 1/4/2010 Extraction of Building Permit Data for To : 12/1/2009 Census Bureau Report From : 12/31/2009 Tyt~e Type Permit Number Name Address Imnr Use Stories Units Valuation Total REP/RMF permits : 2 Total Valuation : $3,200 BLD09-00653 NANCY SPRINCE 229 MAGOWAN AVE REP RSF 0 0 $55,000 STRUCTURAL FLOOR FOR ATTACHED GARAGE BLD09-00668 NORB PIENTA 2620 HICKORY TRL REP RSF 0 0 $2,500 4 EGRESS WINDOWS FOR SFD Total REP/RSF permits : 2 Total Valuation : $57,500 GRAND TOTALS : PERMITS : 47 VALUATION : $7,033,454 IP15 MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION DECEMBER 14, 2009 - 6:00 PM -INFORMAL LOBBY CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Ann Freerks, Charlie Eastham, Michelle Payne, Elizabeth Koppes, MEMBERS ABSENT: Josh Busard, Tim Weitzel, Wally Plahutnik STAFF PRESENT: Bob Miklo, Jake Rosenberg, Sara Greenwood Hektoen OTHERS PRESENT: None CALL TO ORDER: The meeting was called to order at 6:00 p.m. by Chairperson Ann Freerks. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. SUB09-00010: Discussion of an application submitted by Arlington Development, Inc. for a preliminary plat of Windsor West Parts Two and Three, a 58-lot, 25.78 acre residential subdivision located north of American Legion Road, south of Cumberland Lane, on Buckingham Lane. The 45-day limitation period ends December 22, 2009. Miklo introduced Jake Rosenberg, a graduate student in Urban and Regional Planning who will be interning with the Planning Department. Rosenberg prepared and presented the staff report. Rosenberg explained that Windsor West Parts One, Two and Three were approved as a preliminary plat back in 2005. Only Part One, however, was approved for final plat. Parts Two and Three expired after two years, and the applicant is reapplying for preliminary plat approval for those two phases. Rosenberg said that as a result, the amended subdivision codes which took effect in 2008 need to be applied to the remaining two phases of the subdivision. Rosenberg said that the project complies with the Comprehensive Plan as it is low-density residential. The proposed subdivision meets minimum zoning standards for lot size and frontage. Rosenberg said that one issue is the two connecting roads: Buckingham Lane in the south and Cumberland in the north. Rosenberg said these streets were built at a standard requiring 50-foot right-of-ways and four-foot sidewalks; new requirements are for 60-foot right-of-ways and five- foot sidewalks. In order to maintain continuity with setbacks, Staff feels that those two streets should avoid tapering and should stay at the 50 and five feet requirements. Other streets in the development will conform to the 2008 standards. The Parks and Recreation Department chose to accept Outlot C as a partial fulfillment of the open space requirement. An additional area of land has also been donated to help connect to Planning and Zoning Commission December 14, 2009 -Informal Page 2 of 5 trails and Scott Park. Fees will make up for the remaining open space requirements at the time of final plat approval. Aper-acre fee will also be paid for water and sewer and for the improvement of American Legion Road. Eastham asked why the park is not marked on the preliminary plat. Miklo said there is a note on the plat explaining the park location and definition. Eastham asked if there is a trail in Scott Park that there is a plan to connect to. Miklo said the trail is not currently there but there is a plan for one. Payne asked if the house built on lot 91 will have to have a different setback due to the steep slope. Miklo said it was not a sensitive slope so it would probably just be re-graded; he said he believed it was not a natural slope but was part of the former golf course. Eastham asked if it was correct that the sidewalks on Buckingham were 4-feet wide on both sides. Miklo and Rosenberg said that was correct. Eastham asked if it would be possible to have five-foot sidewalks even with a 50-foot right-of-way. Miklo said that it was possible, but that it would minimize the ability to have street trees; Public Works also does not like to have sidewalks that are inconsistent; they would rather have the width change at a logical spot, such as at a four-way stop. Eastham said that the sidewalks on the other streets will be five-foot sidewalks connecting to four-foot sidewalks. Eastham asked if the Commission can require five- foot sidewalks on a 50-foot street. Eastham asked if to would not make some sense to require the five-foot sidewalks somewhere along Buckingham Lane. Koppes said the tapering would be a pain and she would not like it if she was the homeowner. Miklo said he would run the idea by the Public Works Department, as they generally have an all or nothing approach to sidewalk widths. ANNEXATION /REZONING: ANN09-00001 & REZ09-00006: Discussion of an application submitted by Moss Green Development Corporation for annexation and rezoning of approximately 132 acres of land near the intersection of Highway 1 and Interstate-80 from County Agricultural (C-AG) to Interim Development -Research Park (ID-RP). Miklo pointed out the property location on a map. He explained that the applicant owns property within the Iowa City city limits that is zoned Interim Development -Office Research Park (ID- ORP). When the zoning code was adopted in the 1980's it was anticipated that this parcel would develop into something along the lines of NCS Pearson. However, currently the infrastructure necessary for urban development is not in place: no sewer, water or roadway. The property being proposed for annexation would provide the necessary access to create infrastructure to allow the property to be developed. The Comprehensive Plan includes the JCCOG Arterial Streets Plan, which includes the Oakdale Boulevard study that was done a number of years ago. That study shows Oakdale Boulevard connecting from Dodge Street to Prairie du Chien to Dubuque Street. This plan was adopted as a very long-term plan; the City currently does not have the budget or the need to build that roadway. However, the only way to get access to this land and develop it is through that street connection. The applicant wants to bring the property into the city to allow the construction of Oakdale Boulevard, which would allow the development of their other property. Oakdale Boulevard is not currently in the Capital Improvement Program (CIP). The applicant is looking into ways of getting the road built, one of which would be for the applicants to build the Planning and Zoning Commission December 14, 2009 -Informal Page 3 of 5 road themselves; another possibility would be to have a Tax Increment Financing (TIF) district designation that would allow for the applicant to be reimbursed for the cost of building Oakdale Boulevard as the area is developed and the property taxes are generated. Miklo said that all is up for negotiation and needs to be raised with the City Council. Miklo said that there are a number of points in the Comprehensive Plan to look at prior to making the decision on whether or not to annex. First, the area under consideration does not fall into the long range growth boundary as is required for consideration of an annexation. Miklo noted that the land that the applicant wants to develop does, however, fall within the boundary, and can only be accessed via this property. Staff recommends the Commission consider amending the growth boundary to allow the annexation. Miklo reminded Commissioners that amending the Comprehensive Plan is a two-step process. The Commission will need to set a public hearing for January 7 to consider amending the boundary. The second consideration is that the proposed annexation must fulfill an identified need without imposing an undue burden on the City. In this case, Miklo said, there has not been a lot of development in this zoning in recent years. Miklo said this property has unique interchange access. Miklo said there are questions as to whether the market exists for that much research development property; however, if the applicant is willing to take the financial risk of building a road then there is the possibility of increasing the city's tax-base if the market is in fact there. The third test is whether or not control of the development is in the city's best interest. Miklo said that the Oakdale Boulevard extension is in the Comprehensive Plan, and that the applicant's willingness to be voluntarily annexed would provide a measure of control for the City in determining the ultimate location of the road. Miklo said that the zoning should be ID-RP until all necessary infrastructure is in place. Miklo said that Staff recommends the annexation and rezoning be approved with the understanding that there needs to be a plan for a roadway across this property in order for it to actually develop. to order to accomplish this, a public hearing would have to be held on January 7, 2010 to amend the Comprehensive Plan. Greenwood Hektoen clarified that this meant the Commission would be voting to defer on Thursday if they were following the Staff recommendation. Payne asked if the Commission would make a motion on setting the public hearing in addition to the motion to defer; Miklo said it would. Miklo said that originally the applicant wanted everything south of the roadway annexed, but as Staff looked at that plan they decided it made more sense to try to get both sides of the road under the City's jurisdiction. Payne noted that otherwise the situation would wind up being like Rohret Road where one side of the road is the City's and one side is the County's. Greenwood Hektoen noted that in order for the annexation to be voluntary written permission from the property owners needed to be received. Payne asked for clarification on where to change the growth boundary to. Miklo said that further study would have to be done, but for now, the property line would serve as the growth boundary. Miklo said the original boundary used the creek as a natural boundary. Eastham asked if it was correct that Staff believed the current sewer system has additional capacity to serve 700 acres north of I-80 and all of the potential development south of I-80. Miklo said that was correct. Freerks asked if it was correct that before any development could occur the sensitive areas Planning and Zoning Commission December 14, 2009 -Informal Page 4 of 5 review would have to be done. Miklo said that he had advised the applicant that until the property was annexed and had the ability to get a road to it he should not go to the expense of doing a sensitive areas plan. Eastham asked if the annexation would automatically extend the Fringe Area Agreement. Miklo said the Fringe Area Agreement says that the City will decide on a case by case basis in consultation with the county; he said that Karen Howard had had a meeting with the County today. Staff would advise the Commission on this at the next meeting. Eastham asked about the conceptual alignment for the Oakdale Boulevard extension and whether or not the Commission has any jurisdiction over its alignment or its design. Miklo said that the Commission had some influence on its general location, in that at some point the Commission did vote to add the plan to the JCCOG Plan and the Comprehensive Plan. Eastham asked if Staff could reproduce some of the location study. Miklo said that the general idea was to reserve that corridor for Oakdale Boulevard. He said that three or four alignments were shown and that all of them had pros and cons. Eastham said his interest is in showing the proposed alignment as matching one of those previously proposed. COMPREHENSIVE PLAN ITEM: Setting a public hearing for January 7, 2010, on an amendment to the Comprehensive plan to amend the long-range planning growth area boundary to accommodate the annexation proposed by the Moss Green Development Corporation. Miklo said staff would provide a brief memo on this prior to the January 7 meeting. ADJOURNMENT: The meeting was adjourned at 6:36 p.m. s/pcd/m ins/p&zJ2009/P&Z 12-14-09. doc Z O N 0 OO V W ~ ~ Z U o N Z N Q DD aw C9 ~ Z_ Q Z Z Q J a a~ X X X X X X X r X X X X X X X r D O X X X X X x X X X ~ X ~ X as X X X X X X X N X X X X X X X X X X X X X X ti X X X X X X X t0 ~ ~ X X X X ~ X X X X X X X X X X X X X X X X X X X X X X M X X X X X ~ X N X X X X ~ X X ~ X X X ~ X X X r W ~ ~ ~- ~ M ~ N ~ O ~ O ~ M ~ ~ o ~ o ~ o ~ o ~ o ~ 0 ~ 0 ~X W w ~ W ~ J m J 2 Q Z ~ ~ ~ ~ U a J w U Y ~ ~ Q z ~ vi ~ z ~ Q ~ Y w W UP ~ W Q a z = ~ cn ~ v~ Q w ~ a O ~ Q Q ~ - w m w w Y a a ~ Z_ H W W Q N ~ X X X X O O cc ~ >C X X X X X X X X X X X X X r o O X X X X X p r X X X X X X X ti c° X X X X X X X M M X X X X X X X N X X X X X X X X X ~ X X W ~ r- M N O O M Wa r ~ ~ ~ ~ ~n r ~ ~ r ~ ~n r ~ ~n r ~ ~n r ~ ~ ~ X o 0 0 0 0 0 0 W W ~ } 2 Q m J Q Z q ~ W Q V1 ~ = U Z a N = V Y ~ ~ Z w ~ 2 0YC W W ~ W Q ~ w a z = ~ cn v~ w a ~ Q - w ~ m Q w ~ u. O Y Q a ~ a ~ Z H W W m O Z E `o ~d N ~ O ` X ~ wY~ c ~ ~ ~ ~ ~ E ca ~ N ~ o ~ ~ Q Z o a Q 11 11 z II II w II ~~ , xOOz w Y 01-07-09 IP16 MINUTES PRELIMINARY PLANNING AND ZONING COMMISSION DECEMBER 17, 2009 - 7:00 PM -FORMAL CITY HALL, EMMA J. HARVAT HALL MEMBERS PRESENT: Ann Freerks, Charlie Eastham, Michelle Payne, Wally Plahutnik, Elizabeth Koppes, Josh Busard, Tim Weitzel MEMBERS ABSENT: None STAFF PRESENT: Bob Miklo, Jake Rosenberg, Karen Howard, Sara Greenwood Hektoen OTHERS PRESENT: Devon Yoder, Marina Usacheva, Wally Pelds RECOMMENDATIONS TO CITY COUNCIL: The Commission voted 7-0 to recommend approval of SUB09-00010, an application submitted by Arlington Development, Inc. for a preliminary plat of Windsor West Parts Two and Three, a 58-lot, 25.78 acre residential subdivision located north of American Legion Road, south of Cumberland Lane, on Buckingham Lane. CALL TO ORDER: The meeting was called to order at 7:02 p.m. by Chairperson Ann Freerks. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: Devon Yoder, 4183 New Castle Drive, said that he lives in Windsor West, on the east side where Fairway Golf Course used to be. Yoder questioned why sidewalks were not put in along American Legion Road when Windsor Ridge and Windsor West were developed. Yoder said American Legion Road is a main thoroughfare connecting the eastern part of the development with Scott Boulevard. Yoder said there are sidewalks and walkways within the developments, but there are none along American Legion Road. Yoder said he had grown up in Iowa City, east of American Legion Road and has been surprised as the area developed that no sidewalks were created. Yoder said that in warmer weather there are a lot of bicyclists, pedestrians, and joggers. Yoder said the lack of sidewalks is a concern for families wishing to travel and recreate along the very heavily trafficked road. Yoder said that his concern does tie in somewhat with the agenda item concerning Windsor West. Yoder said that if even more homes are added to Planning and Zoning Commission December 17, 2009 -Formal Page 2 of 11 the area the City will need to make plans to develop sidewalks along American Legion Road. Miklo said that as the zonings for development along American Legion Road have been approved, the City has noted that the road is not up to City street standards. As a result, the City has required developers to pay into a fund for the future improvement of American Legion Road. Miklo said he believes that the project is slated for the Capital Improvements Program (CIP) for 2015 or 2016. Miklo said that when the City improves the road, sidewalks will be added. He noted that priorities may shift as the project competes with other capital improvement needs over the coming years, and that the City Council will be reviewing their CIP in January 2010. He advised residents with concerns to get their comments about this issue to the City Council via letter or a-mail in the near future, as such concerns could factor into where the improvement of American Legion Road falls in the CIP. Freerks advised Yoder to consider contacting other residents with concerns to make their opinions know to the City Council prior to the CIP meeting. Miklo noted that the minutes of this Planning and Zoning Commission meeting will also bring the issue to City Council's attention. Eastham asked if it was not the case that part of the right-of-way for American Legion Road remains under County jurisdiction. Miklo said that even so that has not in the past prevented the City from working with the County to upgrade a road. Eastham said he had just been wondering if the issue would be a County one as well as a City one if a large part of the right-of- way remained under County jurisdiction. Miklo said that would be a detail that would be worked out during the construction program. Eastham asked if the trail system that the Parks and Recreation Department has planned will serve as appropriate pathways for residents. Yoder said that there is a section of American Legion Road that is about a third of a mile long stretching from Windsor West to Scott Boulevard that presents the greatest hazard to pedestrians and cyclists. Miklo explained that the lack of sidewalks is in part a consequence of "leap-frog" development; where development does not occur contiguous to other development, but skips an area of land. Miklo said that this is generally avoided; however, it was consciously done in the case of Windsor Ridge back in the early 1990's. At that time, Miklo said, there was very little developable land on the east side of town that was not in the hands of one or two developers. The City consciously decided to annex land a little farther out to help spur the housing market and provide some options on the east side. Miklo said that the lack of sidewalks along American Legion Road is a negative externality that resulted. Miklo said that as the city grows, it will be important to weigh the benefits and consequences of leap-frog development when considering whether or not to allow it. Payne noted that it is very easy to send City Council an a-mail through the city website. Marina Usacheva, 4402 Buckingham Drive, began to address the Commission on her concerns regarding the Windsor West subdivision, but was advised to hold those comments until the public hearing portion of the next agenda item. SUBDIVISION ITEM: SU609-00010: Discussion of an application submitted by Arlington Development, Inc. for a preliminary plat of Windsor West Parts Two and Three, a 58-lot, 25.78 acre residential subdivision located north of American Legion Road, south of Cumberland Lane, on Buckingham Lane. The 45-day limitation period ends December 22, 2009. Planning and Zoning Commission December 17, 2009 -Formal Page 3 of 11 Jake Rosenberg, planning intern, explained that the subdivision was formerly a golf course prior to being zoned RS-5. In 2005, a preliminary plat for Windsor West Parts One through Three was approved. That preliminary plat expired in 2007 with only Part One having obtained final plat approval. Rosenberg explained that preliminary plats expire after two years to make sure that changes in zoning and subdivision codes are applied to subdivisions. The applicant is now seeking re-approval for Parts Two and Three. In 2008, new subdivision regulations were adopted, so these new requirements will apply to this application. Rosenberg said the subdivision complies with the Comprehensive Plan. The Plan identifies this area as suitable for low density residential. Windsor West Parts Two and Three meet current maximum density requirements, lot area requirements and lot frontage requirements. Rosenberg said the original plat was approved under old standards in 2005, which required only 50 foot right-of-ways and four-foot sidewalks. The subdivision standards adopted in 2008, require 60 foot right-of-ways and five-foot sidewalks for local residential streets. The increased right-of-way is intended to allow sufficient room for utilities and street trees. Because Cumberland Lane and Buckingham Lane leading into the subdivision have already been constructed using the 50-foot right-of-way and four-foot sidewalks, Staff believes that it is reasonable to continue those streets as they are. This will allow the maintenance of uniform frontages and avoid tapering the right-of-ways and sidewalks in the middle of the neighborhood. Other streets in the subdivision comply with current street standards. The Parks and Recreation Commission has agreed to accept Outlot C as a partial fulfillment of the open space requirement, and the owner has dedicated an additional swath of land to help facilitate the connection to Scott Park. To fulfill the remaining open space requirements, the developer will pay fees in the equivalent of .94 acres of open space at the time of final plat approval. At that time, the developer will also be required to pay per-acre fees for water main extension, sanitary sewers and the improvement of American Legion Road. Freerks asked if Staff had talked with Engineering about requiring 5-foot wide sidewalks on portion of Buckingham Lane, per Eastham's request at the informal meeting. Rosenberg said that Forestry had said that that sidewalk width, which would be one foot into the public right-of- way, would not be adequate for street trees. Miklo added that the 60-foot right-of-way was adopted to allow for room for street trees. Miklo said that the City Forrester says that 6-feet is the minimum space allowable for trees, and even then he does not feel it is sufficient room. Miklo said that adding five-foot sidewalks in that area would make it difficult to add street trees. If this was a new subdivision without existing streets, Miklo said, the new standards would be more strictly enforced. It is because there are existing streets tying into the subdivision at lower standards that the issue is somewhat murkier. Miklo said that going with the 60-foot right-of- waywould make for some shallow lots in some areas. Weitzel said that it was his understanding that the new subdivision code was attempting to limit cul-de-sacs; he asked how that applied to this preliminary plat. Miklo explained that the code basically discourages cul-de-sacs except where there are topographic considerations that would warrant their use. In this particular case, Miklo said, there is one cul-de-sac; he said there does not seem to be any real benefit in extending it. He said the cul-de-sac is a fairly short one with only three lots on it, and did not seem a compelling reason for redesigning the whole subdivision. Miklo said that the regulations actually say that cul-de-sacs should be avoided except where topographic or existing street patterns warrant their consideration. He said staff felt that this design meets that standard. Freerks opened the public hearing and invited the applicant to speak. No representative for the applicant was present, so Freerks invited other members of the public to speak. Planning and Zoning Commission December 17, 2009 -Formal Page 4 of 11 Marina Usacheva, 4402 Buckingham Lane, said that her main concern with the opening of the new subdivision and the extension of Buckingham Lane is that she is afraid it will compromise the safety of the neighborhood's children. Usacheva said that nearly all of the homes on her street have elementary-aged children. She said that right now the street is very quiet, and that traffic primarily consists of neighbors only. Usacheva said the plan could make this a busy area, with the potential for a bus route. She asked what the City's bus route plan for the area was. Usacheva said that in 2007, the Windsor Ridge Homeowners Association voted not to include Windsor Ridge West in its association. Usacheva said that residents of her streets would like to know why the two subdivisions have to be connected and why Buckingham Lane needs to be opened to through traffic. Freerks asked if Miklo would address Usacheva's concerns. Miklo said that Arlington Drive is currently a collector street which runs from American Legion Road up to Court Street. Arlington Drive is designed as a collector street, with no turns or stops in it. He said that he would not anticipate the bus route changing from its current location on Arlington. Miklo said that the idea is to create a network of streets in the subdivision so that any one street is not overburdened; he said he believed the current plan is in line with that intention. Miklo said that when Buckingham Lane was built it was designed to continue; that it is why it is a stub- street and not a cul-de-sac. Usacheva said that this is one of the issues; when John Moreland built her home and her neighbors' homes, no one told them that Buckingham would be open to through traffic. Usacheva said that the dead-end street with a golf course next to it was one of the attractions to their property. Freerks said she was disappointed that the applicant chose not to use the Good Neighbor Policy and that there was no conversation with the neighborhood association. Freerks asked why Fairway Lane does not connect with Buckingham Lane and if there is a plan for the two streets to connect at some point. Miklo said that Fairway lane and its subdivision are currently in the County's jurisdiction; the plan is to connect the streets when the neighborhood is annexed in the future. Plahutnik asked if there are sidewalks on both sides of Buckingham Lane from its current stub to American Legion Road. Miklo explained that there are sidewalks on the lots that have been built upon. Sidewalks are not installed until each house is built, to avoid damaging them in the construction process. The plan is for sidewalks on both sides of the street, Miklo said. Plahutnik said that the presence of sidewalk should alleviate safety concerns because there is a place for children to walk to and from school. Usacheva said that Arlington is a pretty busy street presently and Buckingham is much narrower. Plahutnik noted that Arlington was designed to carry more traffic. Usacheva asked if someone could answer her question as to why the streets needed to be connected at all. Miklo said that it is the City's policy and it is generally accepted, good urban design to connect neighborhoods. Miklo said that without that policy it would be very difficult to travel from one neighborhood to another, or to provide public services such as snow removal, police and fire protection. Plahutnik said that speaking for himself only, with the amenities of joining the City (sewer, water, snow removal, and trash removal) comes connectivity to the City and your neighbors. Roads connect all throughout town. Plahutnik said that kids walk back and forth to school in many busy areas of town, and that, in fact, the traffic is often heaviest nearest schools. Miklo added that when this project was first approved, Phase Two was to occur with the extension of Buckingham Lane from the south. Phase Three was to be the eastern portion of Planning and Zoning Commission December 17, 2009 -Formal Page 5 of 11 Buckingham as well as Sherwood Drive. The applicant is now proposing to reverse the order of the phases. Phase 2 is now proposed to be the eastern 33 lots that would have access from Buckingham Lane to the east. Miklo said that Staff had looked at the question of whether the City should insist the order be reversed; however, transportation planners estimated that based on the number of lots in the proposed Phase Two and the existing lots on Buckingham only about 300 vehicle trips per day would be generated from that development, quite a bit lower than the mid-point standard for a local street. Based on that, Miklo said, Staff saw no issue with the changes in order of Phases Two and Three. The development of these two phases, Miklo said, will not overburden the streets as designed. Plahutnik asked if it was the case that Phase Two would happen next and Phase Three would occur at some undetermined time in the future; Miklo said it was. Freerks closed the public hearing and asked for a motion. Eastham moved to approve SUB09-00010, an application submitted by Arlington Development, Inc. for a preliminary plat of Windsor West Parts Two and Three, a 58-lot, 25.78 acre residential subdivision located north of American Legion Road, south of Cumberland Lane, on Buckingham Lane. Payne seconded the motion. Freerks invited discussion from the Commission. Eastham said he would like to respond to the street-connectivity question that was posed to the Commission. He acknowledged the legitimacy of the concern, but said that he always hopes that when people purchase a home on a street or in a subdivision there is clear information given at that time about what is going to happen with that subdivision in the future. Unfortunately, Eastham said, that seems not to occur sometimes. Regarding the inter- connection between Arlington and American Legion Road via Buckingham, Eastham said that public safety is served by the connection of those streets. Eastham noted that the design of Buckingham does have some inherent speed control. Freerks said she agrees with Eastham. She said she thinks that it is unfortunate that information was not given to Usacheva fully or directly and that no communication has really been made with the homeowners' association. She noted that the applicant was not present to listen or respond to concerns about the subdivision and said that this was unfortunate. Freerks said that if Usacheva wanted to she could still try to contact the applicant and have some conversation, but that she was not sure it would really go anywhere at this time. Freerks said that the City does like to see streets connect to one another and not have isolated sections of the community. Freerks said she believed the street is designed in such a way that hopefully speed will not be an issue. Freerks noted that her street is really quite busy and that her kids still walk to school. She said that she also understood the concern when a person buys into a situation believing it is one way and then has it changed. Freerks said that nonetheless, she will vote in favor of the development because the plan is not that much different than the original plan and that she feels it is probably best to continue the streets in the way that they were originally outlined. Weitzel said that it is regrettable that the Good Neighbor Policy was not taken up in this situation. Weitzel said it may be that because the subdivision was already platted and approved the developer did not see a need for it; however, Weitzel said, that gesture of extending an opportunity to the residents to comment is an important one. Weitzel said he really hopes that Planning and Zoning Commission December 17, 2009 -Formal Page 6 of 11 people will use the Good Neighbor Policy in the future. There were no further comments. A vote was taken and the motion was approved on a 7-0 vote. ANNEXATION /REZONING: ANN09-00001 & REZ09-00006: Discussion of an application submitted by Moss Green Development Corporation for annexation and rezoning of approximately 132 acres of land near the intersection of Highway 1 and Interstate-80 from County Agricultural (C-AG) to Interim Development -Research Park (ID-RP). Busard abstained from consideration of this application as he works for the County's Planning and Zoning Department, which has worked with the City of Iowa City on this annexation. Karen Howard explained that the Moss family has owned and farmed the land west of NCS Pearson for many years. They no longer wish to farm the land, and have formed a partnership to develop their property. Howard pointed out the property on a location map. Much of the Moss farm has already been annexed into the city and been zoned Interim Development Research Park (ID-RP). Howard said that the annexation is voluntary, meaning the property owners have requested to be annexed into the city. The main reason for the annexation request is to extend infrastructure -roads, sewer and water-to the developer's main piece of property in order to develop it. Because NCS Pearson's property has already been developed and because the only agreement for access to the property is farm access and there is no other good place to extend a road, the property to the north needs to be annexed in order to get a road to the main property. Howard said there is a planned arterial street in that area. The Johnson County Council of Governments (JCCOG) Arterial Street Plan, an element of the Iowa City Comprehensive Plan, indicates that Oakdale Boulevard is planned to extend from Coralville to Iowa City, crossing Dubuque Street, Prairie Du Chien Road and over to Highway 1. A location study was completed in 2003 that generally described the acceptable range of alignments for extending Oakdale Boulevard. This would be a long term roadway project, Howard said. While it is in the long range transportation plan, the road extension is not included in the current CIP program. The City has no current plans to fund or build the roadway. The applicants have yet to work out an agreement with the City for construction of the roadway and extension of services. Until an agreement is reached and a plan put in place to extend this infrastructure, Interim Development zoning is recommended. Howard said that the road and infrastructure must extend across properties not owned by the applicant -Neal Llewellyn and the Catherine Chase Trust, which is administered by Hills Bank for the benefit of Guy McFarland. Howard said that faxed statements have been received from the Neal Llewellyn and Bonnie McFarland that they grant permission for a portion of their properties to be annexed, however, official written permission from the trustee, Hills Bank, has not been received. Howard said the Hills Bank Trust Committee would be meeting the following week. Howard said there has been some confusion over exactly how much land the Llewellyn's and the McFarland's have given permission to have annexed, whether it was a portion of the land or the entire parcel. Staff recommends annexation of the entire parcel. One reason for this is that with Oakdale Boulevard not yet being built, it is difficult to determine precisely where the road alignment will be. It is also difficult to create a legal description for a parcel with a Planning and Zoning Commission December 17, 2009 -Formal Page 7 of 11 boundary that won't be determined until the roadway is established. In addition, Howard stated, it is good planning practice to include property on both sides of an arterial street inside the city limits, so that any future development is consistent with the City's comprehensive plan and zoning and subdivision regulations. Howard noted that there are a number of sensitive environment features on the property in question, including the Rapid Creek stream corridor and floodplain, woodlands, steep slopes, and potential wetlands. Howard said that at present the city's growth area limit follows the creek line. One requirement for an annexation is that a property falls within the City's growth area limit. The current growth area limit was established several years ago with the knowledge that the City could provide water and sewer services for a limited area north of the creek, but had not yet established how far the City wished to grow in that area. Howard stated that there are several reasons to consider a limited extension of the City's growth area limit to include the area proposed for annexation: it is within the City's interest to allow the development of property that has already been annexed into the city; the property cannot be developed unless a roadway and other infrastructure is extended; it is in the City's interest to control land development adjacent to major infrastructure investment such as the extension of Oakdale Boulevard. Staff is recommending that the Commission set a public hearing for their next meeting to consider a Comprehensive Plan amendment to extend the growth area to include these properties. The second criterion for annexation is that development in the area will fulfill an indentified need without imposing an undue burden on the city. Howard said it is in the City's economic interest to promote economic development of land that is already within the City Limits. This annexation will make it possible to extend Oakdale Boulevard and to allow development of the Moss Green property that is already in the city. However, Howard said, Staff is recommending Interim Development (ID) zoning for this property because there is currently no plan to fund the extension of the roadway. The Interim Development designation will not allow the property to be developed until there is a plan for the development of infrastructure. Once a concrete plan is in place, the property may be rezoned to a designation that allows development for urban uses. The third criterion of annexation is that the control of the development is in the City's best interest. Howard said it is in the City's best interest to control the property surrounding the extension and construction of a major arterial street. Howard said that the ID zone would be the appropriate zone at this time. She noted that the applicant has indicated that in the future they wish to develop the property for office/research park uses, which is consistent with the Comprehensive Plan. Howard cautioned that it should nonetheless remain zoned Interim Development until infrastructure is in place or an agreement is in place to extend the infrastructure within a specific timeframe. Howard shared a map that illustrated the various alignments of Oakdale Boulevard that were considered in the 2003 location study. She had also handed out excerpts of the location study, which explained the various pros and cons of each of the alignments. The study did note that there are a lot of sensitive features in the area which will make the roadway difficult to construct. She noted that the preferred alignment identified in the location study is consistent with the alignment being proposed by the developers. With regard to extension of other City services, the City Engineer has determined that the Highlander lift station has the necessary capacity to serve the area; and, the new water plant Planning and Zoning Commission December 17, 2009 -Formal Page 8 of 11 also has considerable capacity to serve this area. With regard to environmentally sensitive features, the development will have to be done in a very thoughtful way. There are wooded areas, stream corridors, floodplains, steep slopes, ravines and likely wetlands areas which will all need careful attention and be reviewed through the sensitive areas ordinance. When the development plans progress to the point that rezoning is warranted, a detailed sensitive areas development plan will need to be submitted and reviewed. Howard said that with all of the above in mind, Staff recommends ANN09-00001 & REZ09- 00006, an annexation into the city and rezoning of approximately 132 acres of land from County Agricultural (C-AG) to Interim Development-Research Park (ID-RP), be approved subject to a Comprehensive Plan amendment adjusting the City's growth limit to include the area being annexed. Eastham said that it looks to him like the road alignment shown in the annexation documents is essentially the same as 3A in the road location study. Howard said that was correct; however, she cautioned that the findings in the location report were preliminary and that only the intersection points were actually fixed. Eastham asked if the other alignments were outside the proposed annexation area. Howard said she believed that they were. Freerks noted that prior to any development there would need to be a sensitive areas assessment and a plan in place. Howard said that was correct; no clearing or construction until the sensitive areas development plan was submitted and reviewed according to the City's sensitive areas ordinance. Payne asked if the property would have to go through a platting process as well. Howard said that was correct. Eastham asked if Staff's position was that the agreement to annex should be contingent on the owner agreeing to this particular road alignment. Howard said the annexation was strictly to get the property into the city and that there is no agreement with the owner about the roadway. Howard said the owner is still working out proposals about that and the City Council has no funds budgeted for the project. Howard said that what will likely have to happen is for the developer to convince the City Council to change its CIP budget to include funding for the road, or to build the road using their own funds and negotiate an agreement with the City to be repaid over time as development occurs. Miklo said the annexation itself does not commit the developer or the City to building a road. Miklo said that Staff is unlikely to recommend approval of a rezoning from interim development until there is a specific plan in place to build the road and extend infrastructure to the property. Howard said that is why the ID zoning is recommended. Payne pointed out that realistically the developers could not develop until a road is built, but that if they waited for it to show up in the City's budget it could be several years. Eastham said that as he understands it the parcel could actually be rezoned with another access roadway. Greenwood Hektoen assured Eastham that this agreement would not in any way commit the City or the developer to building a roadway. There were no further questions for Staff. The public hearing was opened and the applicant was invited to speak. Wally Pelds of Pelds Engineering Company, 2323 Dixon Street, Des Moines, spoke on behalf of Planning and Zoning Commission December 17, 2009 -Formal Page 9 of 11 the applicant. Pelds said the application for annexation is the first step in a project they are calling Moss Green Urban Village. Pelds said that this is the first step and there have been public releases regarding what the developers would like to do. Pelds said that they see Iowa City as a perfect fit for the kind of green technologies that a lot of companies and clients are moving to. Pelds said he saw Iowa City as a kind of sister city to Austin, Texas, a city trying to embark on a similar project. Pelds said Howard and Staff have been very helpful and knowledgeable. Pelds said that it has been nearly fifteen years of trying to access the already- annexed property. Pelds said bringing in the right businesses to grow the right way is what they want to do in Iowa City. Pelds said they have met with all of the neighbors and used the Good Neighbor Policy, and have gotten signatures of support for their project and for the Oakdale Boulevard extension. Pelds acknowledged that this may be a long process. Pelds offered to answer any questions from the Commission. No one else wished to speak to this issue and the public hearing was closed. Freerks asked for a motion. Payne asked if one motion could be made or if it was necessary to do two. Miklo said it would be cleanest to do two motions. Payne motioned to defer ANN09-00001 & REZ09-00006, an annexation to the city of Iowa City and rezoning of approximately 132 acres of land from County Agricultural (C-AG) to Interim Development -Research Park (ID-RP). Eastham seconded the motion. Freerks invited discussion. Payne asked if this would be deferred indefinitely or if a date would be set. Miklo said it would be deferred until January 7`h, the same meeting when an amendment to the Comprehensive Plan's growth boundary would be considered. Freerks noted that both items need not be heard in one meeting. She said if there is public interest, conversation or unanswered questions that is fine because there are no deadlines to be met for this item. Payne said she just was trying to ascertain if they would be done in one meeting. A vote was taken and the motion to defer passed on a 6-0 vote (Busard abstaining). COMPREHENSIVE PLAN ITEM: Setting a public hearing for January 7, 2010, on an amendment to the Comprehensive plan to amend the long-range planning growth area boundary to accommodate the annexation proposed by the Moss Green Development Corporation. Eastham moved to set a public hearing for January 7, 2010, on an amendment to the Comprehensive plan to amend the long-range planning growth area boundary to accommodate the annexation proposed by the Moss Green Development Corporation Payne seconded. There was no discussion on the matter. A vote was taken and the motion was passed on a 6-0 vote (Busard abstaining). CONSIDERATION OF MEETING MINUTES: November 16 ~ 19, 2009: Planning and Zoning Commission December 17, 2009 -Formal Page 10 of 11 Freerks said she had a couple of small changes regarding some comments that she made, and asked if she could a-mail those changes to Staff. Koppes motioned to approve the minutes as amended. Eastham seconded. The minutes were approved 6-0 (Busard not present at time of vote). ADJOURNMENT: Weitzel motioned to adjourn. Koppes seconded. The meeting was adjourned on a 6-0 vote (Busard not present at time of vote) at 8:05 p.m. ~IXIX XIXIXIXIX ~ ~IXIXIXIX XIXIX ~IXIX XIXIXIXIX ~ ~~~~X~X~X~X~X~X~ v~iXIXX~o~X~o~X ~ XIXIXIXIOIX X SIX XIX X X XIX Z ~ X X X X X X X O i ~o ~ X O x x x x x ~ ac C° c ~W ? ~ o X x x x o X u ~ W LL Z W W C7 OZc ~ ~ X X ~ X X X X ~ N Q N Q ~ ~ ~ ~ W O ~ X X X X X ~ X ~ u Q ~ W ~ (~ ~ Z Q M X X X X X X X Z Z a N x X x X x o x NIX XIX X OIX X ~IXIXIXID X XIX W ~ .- M N O O M ~ ~ ~ ~ ~ ~ ~ w a ~n ~n ~n ~.n ~n ~n ~n ~ W o 0 0 0 0 0 0 W ~ ~- =azaWa W N = Z N = ~ ~_ Q O U a W U Y~ Z~QYN~~"'w ~ _ ~ d Z 2 N vaiv~iwa~Q~= mw~Yaa~ N ~ X X X X ~ ~ r cc M X X X X X X X ~- X X ~ X X X X o O X X X X X X X X X X X D ti M X X X X X X X M M X X X X X X X M X X X X X X X ~ ~ X X ~ X X ~ ~W ~ ~- C'7 N O O M ~ ~ ~ ~ ~ ~ ~ ~,X o o o o o 0 0 W W ~ ~ 2 Q m J Q Z Q ~ W N = ~ Z a N = ~_ Q Z o m Q Y W C~ ~ ~1 F'_' ~ _ ~ N W W f' ~ W N a ~ w a z = ~ cn v~ w n- >- a - W ~ m Q w m u. O Y Q a ~ a ~ E 0 vd N N O ` 7 ? ~ X ~ ~ W •~ ~ ~~NEc~ a~i~QZ o a Q u z n iiwn n ~~ xOOz w Y COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2009 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA ~- ` I~ ,~ ~` ~ ;~ ~~ yl~~~l f 0 ~. -~ -a . M1xL a5 •5 '~i I I !~I CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2009 INTRODUCTORY SECTION Pale Table of contents ................................................................................................................................ 1 Letter of transmittal ............................................................................................................................ 3 City organizational chart .................................................................................................................... 10 City officials ....................................................................................................................................... 11 Certificate of Achievement for Excellence in Financial Reporting ................................................... 12 FINANCIAL SECTION INDEPENDENT AUDITOR' S REPORT ......................................................................................... 13 MANAGEMENT'S DISCUSSION AND ANALYSIS .................................................................... 15 BASIC FINANCIAL STATEMENTS Government-wide financial statements Statement of net assets ................................................................................................................. 26 Statement of activities .................................................................................................................. 28 Fund financial statements Balance sheet -governmental funds ............................................................................................ 30 Reconciliation of the balance sheet of the governmental funds to the statement of net assets .... 32 Statement of revenues, expenditures, and changes in fund balances -governmental funds ....... 33 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities ..................................................................... 35 Statement of net assets -proprietary funds ................................................................................. 36 Statement of revenues, expenses, and changes in fund net assets -proprietary funds ................ 39 Statement of cash flows -proprietary funds ................................................................................ 40 Statement of fiduciary assets and liabilities ................................................................................. 42 Notes to financial statements .......................................................................................................... 43 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule -budget and actual -all governmental funds and enterprise ... funds -budgetary basis ..................................................................................... 78 Budgetary comparison schedule -budget to GAAP reconciliation ................................... 80 Note to required supplementary information -budgetary reporting ................................... 81 Schedule of Funding Progress for Health and Dental Plans ................................................ 82 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet -nonmajor governmental funds ............................................................ 84 Combining statement of revenues, expenditures, and changes in fund balances -nonmajor governmental funds ...................................................................................................................... 85 Combining statement of net assets -nonmajor enterprise funds .................................................... 88 Combining statement of revenues, expenses, and changes in fund net assets -nonmajor enterprise funds ............................................................................................................................ 89 Combining statement of cash flows -nonmajor enterprise funds .................................................. 90 Combining statement of net assets -internal service funds ........................................................... 92 Combining statement of revenues, expenses, and changes in fund net assets -internal service funds ............................................................................................................................................. 93 Combining statement of cash flows -internal service funds .......................................................... 94 Combining statement of changes in assets and liabilities -agency funds ...................................... 96 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2009 STATISTICAL SECTION (UNAUDITED) Page Net assets by component .................................................................................................................... 99 Changes in net assets .......................................................................................................................... 100 Fund balances -governmental funds ................................................................................................. 102 Changes in fund balances -governmental funds ............................................................................... 103 General government tax revenues by source ...................................................................................... 104 Assessed and taxable value of property .............................................................................................. 105 Property tax rates -direct and overlapping governments .................................................................. 106 Property tax budgets and collections .................................................................................................. 107 Principal taxpayers ............................................................................................................................. 108 Principal water system customers ...................................................................................................... 110 Sales history and total water charges .................................................................................................. 111 Principal sewer system customers ...................................................................................................... 112 Sales history and total sewer charges ................................................................................................. 113 Ratios of outstanding debt by type ..................................................................................................... 114 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 115 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures ..................................................................................................................................... 116 Computation of direct and overlapping debt ...................................................................................... 117 Legal debt margin information ........................................................................................................... 118 General obligation debt annual maturity schedule ............................................................................. 119 Schedule of revenue bond coverage ................................................................................................... 120 Revenue debt annual maturity schedule ............................................................................................. 121 Revenue debt annual maturity by funding source .............................................................................. 122 Demographic and economic statistics ................................................................................................ 124 Principal employers ............................................................................................................................ 125 Full-time equivalent city government employees by function ........................................................... 126 Operating indicators by function ........................................................................................................ 128 Capital assets by function ................................................................................................................... 130 COMPLIANCE SECTION Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards.. 133 Report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133 ................................................ 135 Schedule of expenditures of federal awards ....................................................................................... 137 Notes to the schedule of expenditures of federal awards ................................................................... 141 Schedule of findings and questioned costs ......................................................................................... 142 2 December 14, 2009 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa ~ ~ 1 ~~ 4 r~.-..~,l..ii..~~1 ,,~''' .~ rew~`R~i -~.~ CITY OF IOWA CITY The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2009 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. The City's Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the. completeness and fairness of the presentation, including all disclosures, rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner designed to fairly present the, financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. This report consists of management's representation concerning the finances of the City of Iowa City. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management. of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh their benefits, the .City's comprehensive framework of internal controls has been designed to provide .reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The CAFR reflects all funds of the City in accordance with standards set by the Governmental Accounting Standards Board (GASB). In 1999, GASB adopted Statement No. 34, Basic Financial Statements -Management's Discussion and Analysis -For State and Local Governments. The final effective date for the implementation of GASB No. 34 for the City of Iowa City was June 30, 2003. This report complies with those standards. This statement significantly changes governmental financial reporting in order to bring it closer to a private sector model. 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 1 1, the audit was also designed to meet the requirements of the Single Audit Act of 1996 and related OMB Circular A-133. While, the financial statements are the responsibility of the City, the responsibility of the auditor is to express an opinion on the City's financial statements based on their audit. The goal of the independent audit is to provide reasonable assurance that the City's financial statements for the fiscal year ended, June 30, 2009 are free of material misstatement. The audit is conducted in accordance with generally accepted auditing standards and involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement preparation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Iowa City's financial statements for the fiscal year ended, June 30, 2009, are fairly presented in conformity with GAAP. The independent auditors' report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. 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 these federal programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management and the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments. The results of the City's single audit for the fiscal year ended June 30, 2009 provided no instances of material weaknesses in the internal controls or significant violations of applicable laws and regulations based upon the audit of the basic financial statements. Information related to this single audit, including the schedules of federal financial assistance, findings and questioned costs, and independent auditors' reports on the internal accounting and administrative controls and compliance with applicable laws and regulations are included in the compliance section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves afour-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, but three members are nominated from specific districts, and the four other members are nominated at large. The Council elects the Mayor from its own members for atwo- year term. The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City's operating departments and supervises the administration of the City's personnel system. He supervises 555 full-time and 82 permanent part-time municipal employees and 446 temporary employees, including a police force of 73 sworn personnel and a fire department of 56 firefighters. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate storm and sanitary sewer systems. The City operates a municipal off-street and on-street parking system in the downtown area. Since 1971, the City has operated a transit system. The annual budget serves as the foundation for the City's financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than March 15. The appropriated budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City adopts athree-year financial plan that includes both operations and capital improvements. This three-year plan permits a more comprehensive review of the City's financial condition, allowing analysis of the current and future needs and requirements. During preparation of the plan, careful review is made of property tax levy rates, utility and user fee requirements, ending cash balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least cone-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. 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. Information Useful in Assessing the Government's Economic Condition 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 almost 28,800 employees and the University of Iowa Hospitals and Clinics is the largest university-owned teaching medical center in the United States. The City also has a significant number of private employers who have a history of providing stable and increasing employment in the community. The relative stability of the University of Iowa, coupled with the City's multi-sector base of industrial and commercial interests, will continue to help insulate the City from the significant negative economic impacts related to unemployment. The City continues to see sustained production in our major local industries, such as ACT and NCS Pearson. 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, have proved positive with the retention and expansion of businesses. In addition, the corridor between Iowa 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 within Iowa City and the region have a favorable impact upon the City's economy. There have been budget challenges faced by the State of Iowa; however, the City's economy as a whole continues to grow. The major employers have been able to maintain their workforce size. The unemployment rate for Iowa City continues to remain low at 4.3°Io for the month of June 2009, as compared to 6.2°Io for the State of Iowa, and 9.5°Io for the national average. The City has consistently experienced modest increases in assessed property valuations. The rate of new housing construction slightly decreased in comparison to prior years with 114 new single-family houses and 101 multi-family dwelling units added to the tax rolls for the year ended December 31, 2008. This, along with the low unemployment rate, continues to be indicative of the City's relative economic stability. The 2000 census population of Iowa City was 62,220. Based on the United States Census Bureau, the population was estimated to be 67,831 in 2008; this represents a 9.0°Io increase. In response to the current national economic recession, the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009, is designed to preserve and create jobs and promote economic recovery, assist people impacted by the recession, provide investments needed to increase economic efficiency, and stabilize state and local government budgets. While Iowa City's housing market and unemployment has not felt the impact as greatly as other areas of the country, the City has been able to utilize stimulus funds to complete projects and strengthen the local economy. Iowa City has applied for funds totaling $43,663,000 and has been approved for $6,359,000, with another $32,267,000 still pending. These projects vary from resurfacing Highway 218 to reconstructing an airport runway and purchasing 3 new buses. In addition, the State of Iowa's stimulus program, I-Jobs, is designed to create jobs, strengthen the economy, and build a safer, stronger, greener and smarter Iowa. The City has applied for $14,469,000 in I-Jobs funds and has been approved for $7,762,000, with an additional $6,605,000 pending. These funds will be used for projects including a fourth fire station and UniverCity Neighborhood Partnership, a joint project between the City and the University of Iowa. There are many signs that the City remains healthy and vibrant with great promise for the future. The University of Iowa continues to add new buildings and facilities. The City continues to see sustained production in major local industries. Industrial and commercial interests within the community continue to thrive. Major Initiatives Iowa City continues to deal with the recovery efforts from the flood experienced in 2008. The City of Iowa City was among several cities in Iowa that received a Presidential Disaster declaration, which brought the Federal Emergency Management Agency (FEMA) technical and financial assistance to Iowa City. These on-going efforts include relocation of the North Wastewater Plant, constructing a pump station and stormwater outlets, as well as, flood gates, and rebuilding the City's Animal Shelter. In addition, the City has received a Hazard Mitigation Grant and Community Development Block Grant to acquire properties in the flood-impacted neighborhoods. The City is currently in the process of developing a general industrial park on the southeast side. This project involves annexing and rezoning 180 acres of land and building the street, water, and sewer infrastructure needed to support industrial businesses. This project is estimated to cost $5,405,000 and will be funded through Tax Increment Financing. This project is scheduled to be completed in phases, with the land being "shovel ready" for industries to build. The City of Iowa City is in the planning process of constructing amixed-use parking facility adjacent to downtown Iowa City. The mixed-use parking facility will include three components: parking facility consisting of approximately 600 parking spaces, commercial space of approximately 25,000 - 35,000 square feet, and 25 - 75 workforce housing units. The City is hoping to work with a private partner to develop the commercial and housing spaces. As this is still in the planning phase, the cost of this project is unknown, but it is anticipated that the parking facility will be financed with bonds and the commercial and housing space will be funded by the private developer in conjunction with the City. The City anticipates establishing an urban renewal area for the purposes of allowing Tax Increment Financing of the commercial and residential space. Long-term Financial Planning In preparing the financial plan for the three years ending June 30, 2013, the process of budget balancing has been 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 contingency and undesignated fund balances. The contingency fund is available during the fiscal year for unanticipated and unbudgeted 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, joint operation of an animal control facility and an indoor swimming 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 Iowa. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2008. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last twenty four consecutive years. I believe our current report continues to conform to the Certificate requirements and am submitting it to GFOA 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, 2009. The City Council, as required by law, is responsible .for the complete and accurate preparation of the City's Comprehensive Annual Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds of the City. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the City's Finance Department. I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the City's Controller, Robin Marshall, Assistant Controller, Sara Sproule, Internal Auditor, Nickolas Schaul, Senior Accountant, Justin Armatis and Payroll Accountant, Chris Hurlbert. Also, I thank the Mayor, members of the City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a dedicated, responsible, and progressive manner. Respectfully submitted, e ~~ Kevin O'Malley Director of Finance d c L d ~ ~ ~+ d L U ~+ 'v O C = ~ ~ O `o c ~+ = ca O U ~ ~ ~ d .Qm C ~ Q~ ~ U~ ~ ~ Q V otf Q ~ ~ ° ~ o ~, ~ U m ~ O O ~ si O C U t6 ~ C U ~ d d ~C7 d d ~ = y N ~ d O C - ~ tam W tam (/~ ~ L~ L O L L ~~ T d d E y ~ ~ 3 O) y V y O) ~ ~ cC r ~ ~ ~ .N ~ ~ ~ co c a~ R o o~ ~ R R~ R ~~ L e o c`o E ~ o Q wU w w~ ~ m m~ m~ s~ ~ WO ~~ X000 o a v, W V ~ ~ c c .~ •` ~ O T O m v otl y N (q C y f6 C N t6 V d C l6 ~ U C C7 ~ ~ .a C7 ~ N ~ ~ ~ y .O V 'a C O d '~ > ~ O t6 d> d Q Q U cn U~ W U d ~~ L O N ~+ ~ V ~ ~ L >+ O d ~ i ~ C7 O ~ ~ ~; J ~ otS w y L is ~' a~i a~i o ~ c vi a>'c E O y c~ u~ a ~ y ~ ~ 0 L c ~ Q~ ~ ~o .~c C7 ~m a J m~ .~ E O L E m C m O L V C ~ O >~ ~ Om ua~i U ~md ~ a U ~ Q U ~ W D ~ Z cA ~ m v L O ~ y ~ ~' IC G L ~ O_ T d N O ~ U ~ ~ N ~ d ~ c c is V ~ a v v W cam' a~ ^~ N I!! , ` C ~V v O 3 ~ ~ T~ c ~ „ O O " `" ° U Y C f6 N (~ Imo a ~ a ~ ~ ~ ~ •- ~ y fp L C V ~~ ~ U T f+ d ~omO ~_ ~ O ~+ L C U V V ~ .a N 7 s~+ 7 y C V U+~+ .7 a~ L Q m5 xQ x5 ~ Q = C ~ ~ ~ ~ d V c p aS ~ Q V w co rn~ ~ a y rn N ~ ~ ~_ a2S o ~ Ea d`m °'~ ~~ `° ~ ii U 'ate E a ~~ ~ a m N 'y Q fA W O LL d H W ~ W ~ ~ N O~ L ~ ~ O C T C O) d m 0 V O C N d y l6 O d 7 d U C V C 7 ~ ~ U ~~ V ~ ~ 7 '- ~ d U t Y ~ i 'a V 7 O d a d d d N t6 c L ~` o Q Q a om ~~m ~ ~~ O i ~ aE ~ ~_ = cE rn ~ Q ~ Q~ w `m ~o c c~ Q ~ m~ x x~ 10 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2009 ELECTED OFFICIALS Mayor Council Member and Mayor Pro tem Council Member Council Member Council Member Council Member Council Member Regenia Bailey Mike O'Donnell Connie Champion Amy Correia Matt Hayek Ross Wilburn Mike Wright APPOINTED OFFICIALS Acting City Manager City Clerk City Attorney Dale E. Helling Marian K. Karr Eleanor Dilkes DEPARTMENT DIRECTORS Director of Housing and Inspection Services Library Director Director of Planning & Community Development Director of Public Works Director of Transportation Services Senior Center Coordinator Fire Chief Acting Parks and Recreation Director Director of Finance Chief of Police Douglas W. Boothroy Susan Craig Jeff Davidson Rick Fosse Chris O'Brien Linda Kopping Andrew Rocca Mike Moran Kevin O'Malley Sam Hargadine 11 Term Expires January 1, 2012 January 1, 2010 January 1, 2010 January 1, 2010 January 1, 2012 January 1, 2012 January 1, 2012 Date of Hire August 16, 1975 May 21, 1979 March 18, 1996 September 22, 1975 July 28, 1975 January 26, 1981 February 22, 1984 December, 29, .1997 March 20, 1995 July 14, 1978 September 26, 1983 August 19, 1985 August 29, 2005 Certificate of Achievement for Excellence in Financial l~ rti City of Iowa City Iowa For iL5 ~:c~mprehet~sive Am1ua1 Fi~~t~ncia] le~rcrr'i for 1:~tie Fisca] Year Fridec~ June ?,0, (}Q~ A Ce~rtificare of rLcluevement for E~rcelleiu.e iu Financia 1 I{.epor#in~ i~ pre~cnticd Yry the {in1'Cmmcnt Financ4 {)tliccts Assuc~iaiion of the United Mates and C:auad a to ' government units and public ~n,ploye~ retir~n,e~rk s~~tems whose crnnprchcnxi~~c annual #~nan~~ia1 rc~ort~ (L".A)-'Rs) achic~~c ~hc hi~h~s~ stsri,~rds in go~~ertur~enr flccoun#urg andfiuaucial repo[ting, ~t. 4' ,~ ull 1 ~~- Pres~ci.eni ~.~.~~ ~+rEP F.xecu[ive irec~c}r 12 ,g. ~;.. EideBailly,.. 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S I ~~!'~~~ r}!*.f~'I ik'I4':1"li: s~5i'f: .`ikr, [;{l i fliiF.~u^. ~/+ f:!ril7. :' ,; 1 ~'-k nr ~A7.,~jfi, 174';1 I fix :a:~3.a3??~{~ r E~}~ Tla~. r7'a~tti~rerr~eiat'~ ili~cu~si~~r~ ai7d at7~lysis t~ar~] ~tll,~r r~~:la~irc:+ci ~u~,pl~llic.7ltr~r~~ uil~snl~t}ic}ri li:stcai ixx tl'1~ t:~thle t~f contents are n~rt a required ~~art ~~t` tl~e }~a~ic financial stnremer7ts but ~lre sul--plea~~entar~T inI'onrlxalit~n rccltairccl b;~ tacc:uun~ui~F ~xrincipl~s ~+~~~ritli}+ ac;u;t:.ptc:cl in thc; t_Ilii-t~.d States t,f :lnY~:rictl, ~~'as ir~ax`~ ~~pli~cl cei~taitr lirr3it~rl ~a~~~~.ecltxr'~~ kh~}1i~.lr ci~17r;ist~ci l~rill~i~,till~~ ~1' iu~luinc4 ~+f' rr~,r~a~c'rri~.~il regardili~ the xuc;tho~1~ uF aiiasurelnasnt alld presentati~,ai o~ tha required su~pleaner~tar}~' ia~fnrrraatian. Hu+~:~a"v~r, ti~~;c ctrl i7t,t. a~urlit ih~ ir7li~rr7t;~li,~,r ,~ncl [::~~ar. cs.s rtU t1~71I1i~111 X11 il. ~~ur atucjii xn~tts c:ir~Y~ltr~tc~ti 1'or t~1L: purpu~c of tcrnrlui~ t~puu~ns crn tll~ fu~ttuciial ~t~tlcliuu>nts il~rt cc~lle.~:tivel}~~ ~<:tr7l~rise the }~a~i~: tinaa~cial strtemerat~ 4~f t}~~ Cil~r ~I~ 1uu~a C;cy`, To,~~~a.. T}t~ i~~lt-c~c3uct~,zv s~clinn,. c.~luk,iiiiug rlulijur ful~i fintrna.~.ittl stiltc,~xcnt~, anti stat.istictal ae~~tio11 the presented f~or ~ua~,crses of taa<Icialii;,r~al ~n~lr,'~si5 staff ~~ ra<:r! ~~ rr;,~ir,i-+~~i iaairi uI' ~llc busi~: litlatnt;ital slsala.~xuc:nts cif ~hc t_'l}~ c~i' I~~+~~a ~'it;~, i~~kh~a. ~i'~ae ac;ce~mptui~•ing 5cf~eda.ile «f l;x~~enditures nt lyeclerar :~~~~~trds is laraseryted fir ~rur~~rrses nfi ra~lciida,~u~l ~t~~.l~~ki~ ~s a~~la,-iri:ii l:~~r T?.S, f)fl~i:~. c, f~~~tal'A~YwIII~.~I'11. arr~l $rlci~cl ~{~~,°ii~} C'ir~,ulAtr ~~-1.33, :4rrdiGs` r~J` ~r~tc.s, f~c~c~l (ir}x°e~~rr~erates, a€~~f e'~`~~~~-f'~r~~~t ~~r~;u~rar.~r~ara'ra,4~, und. i.~ ~tlsn ~3~rr a r~uirec} Evart crf the }~n~ic lllYarici;al SGt3l.C:r„Cia1,S c~l'ah~ C'il.;~~ as~'icr~~`,~ [}i~~}~, Ir}}~~;,, "l'Is~; ccrambilii_uu~ ncrnmitj~rr fund fix~ttl~:ital ~tata_.lxrcnwes arlel t13e Se.l7e~}ule a~f i~?€l~en~•lit~rres cif >!eder•al ,~~~•nrds ha~~e }~eet3 su}ajecae~. 1.t~ she r~rl_it.irat? l~rt~cet~ure tal~pli.°ci ill ~llk: ~iualil ~~1' llr~: ~tasi~: I>zlrarl~:iztl 3littt'.luc~alw ~ai~ci, 111 L~u~ C1~711ll{}ll, ara; fairly sltll~,c~ iua all material a~esE~ec#~ in reiatinry ter the basic f~ryaa7cial stnternetrts trkel7 as a ~~~lat~le. Tl~e %~titrncluctt~r~~ ~a~i1 stat.i~tic~l s~cti~,n: ha~~c iscat b~:t:n s4aL~j~ct~:~i ~cr tlic: tauciitil~.~4 prc~c;e;clur~s trpl~lie~i in the ttuciit ~ tliav b~rsic. fit~nc~ial sr..7Cea77ents, and ~tccnrdingl~~, ~~~e exl?reg., r7n frF3rr~s~~ra i~r7 C}aer13. ~~~~ l~ Management's Discussion and Analysis As management of the City of Iowa City, we present this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2009. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 - 8 of this report. Financial Highlights • The assets of the City of Iowa City exceeded its liabilities at the close of the fiscal year ending June 30, 2009 by $390,477,000 (net assets). Of this amount, $81,780,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to its citizens and creditors. • The City's total net assets increased by $23,164,000 during the fiscal year. Governmental activities increased by $15,572,000 and business-type activities increased by $7,592,000. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $42,123,000, an increase of $1,702,000 in comparison with the prior year. Of this total amount, approximately $24,470,000, or 58°Io was unreserved and is available for spending at the City's discretion. • At the end of the current fiscal year, the City's unreserved, undesignated fund balance for the General Fund was $15,362,000, or 33% of total General Fund expenditures. • The City's total debt decreased by $9,625,000, during the current fiscal year. The key factors to this decrease were the refunding of bonds to take advantage of lower interest rates and the retirement of bonds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to aprivate-sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include Public Safety, Public Works (roads, traffic controls, and transit), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business-type activities of the City include Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water. 15 The government-wide financial statements may be found on pages 26 - 29 of this report. Fund Financial Statements: A, fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements and is typically the basis that is used in developing the next annual budget. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has five major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, Other Shared Revenue and Grants, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as "Other Governmental Funds". Individual fund data on each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 30 - 35 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business- type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other three non-major enterprise funds are grouped together for reporting purposes and listed under a single heading "Other Enterprise Funds". Detailed information for each of the non-major funds is provided in the combining statements on pages 88 - 90. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 36 - 41 of this report. 16 Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City's own programs and therefore are not reflected in the government-wide financial statements. The City has two fiduciary funds: Project Green and Library Foundation, which are maintained as agency funds. The basic fiduciary funds financial statements can be found on page 42. Notes to Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 43 - 76 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non- major governmental funds, non-major enterprise funds, and internal service funds are presented immediately following the notes. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $390,477,000 at the close of the fiscal year ended June 30, 2009. By far, the largest portion of the City's .net assets reflect its investment in capital assets (e.g., land, building; .machinery and equipment, improvements other than buildings, and infrastructure), less any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to .its citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa City's Net Assets dune ~a, zao~ (amounts expressed in thousaxu3s) ~i4VCTIIlttehtal ~LS1heSS-type activities activities Total zao~ zoos zaal~ zoos zaa~ zaas Current and other assets $ 126,558 $ 118,167 $ 99,378 $ 95,730 $ 225,966 $ 213,$97 Capital assets 167,33D 157,273 254,404 257,034 421,734 414,307 Total Assets 293,918 275,440 353,782 352,764 647,700 625,204 Long-term liabilities outstanding 53,928 84,442 103,551 110,027 157,479 194,469 Current and other liabilities 64;725 61,305 5,019 5,117 b9,744 66,422 Total Liabilities 148,653 145,747 1D8,570 115,144 257,223 260,891 Net assets: Invested incapital assets, net of related debt 10D,741 87,723 162,211 160,330 262,952 245,453 Restricted 26,586 23,741 19,159 21,320 45,745 45,061 Unrestricted 17,938 18,229 63,842 55,970 81,780 74,199. Total Net Assets $ 145,265 $ 129,693 $ 245,212 $ 237,620 $ 390,477 $ 367,313 17 A portion of the City's net assets (ll.5% or $45,745,000) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets (21.1% or $81,780,000) may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of the fiscal year ended June 30, 2009, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. Governmental Activities: Governmental activities increased the City's net assets by $15,572,000. The increase in net assets of governmental activities is primarily due to expenditures for capital assets less depreciation expense. The following is a more detailed review of FY09's operation. City of Iowa City's Changes in Net Assets (amounts expressed in thousands) Governmental Business-type activities activities Total 2009 2008 2009 2008 2009 2008 Revenues: Program Revenues: Chages for services $ 6,701 $ 6,379 $ 36,227 $ 34,876 $ 42,928 $ 41,255 Operating grants and contributions 8,185 3,611 7,293 6,281 15,478 9,892 Capital grants and cont-ibutions 3,773 1,747 3,705 2,798 7,478 4,545 General Revenues: Property taxes 47,085 43,400 - - 47,085 43,400 Road use tax 5,254 5,432 - - 5,254 5,432 Other taxes 1,489 1,435 - - 1,489 1,435 Earnings on investments 3,057 3,932 2,577 3,279 5,634 7,211 Gain on disposal of capital assets - - 360 1,260 360 1,260 Other 4,894 3,509 317 454 5,211 3,963 Total revenues 80,438 69,445 50,479 48,948 130,917 118,393 Expenses: Public safety 20,730 20,504 - - 20,730 20,504 Public works 15,177 13,727 - - 15,177 13,727 Culture and recreation 9,574 13,460 - - 9,574 13,460 Community and economic development 8,726 1,850 - - 8,726 1,850 General government 7,600 7,433 - - 7,600 7,433 Interest on long-term debt 3,264 3,517 - - 3,264 3,517 Wastewater teatment - - 11,925 11,757 11,925 11,757 Water - - 9,185 8,804 9,185 8,804 Sanitation - - 7,296 6,868 7,296 6,868 Housing authority - - 7,238 7,374 7,238 7,374 Packing - - 4,489 3,913 4,489 3,913 Anport - - 693 560 693 560 Stormwater - - 1,223 1,072 1,223 1,072 Cable television - - 633 598 633 598 Total expenses 65,071 60,491 42,682 40,946 107,753 101,437 Change in net assets before transfers 15,367 8,954 7,797 8,002 23,164 16,956 Transfers 205 488 (205) (488) - - Change in net assets 15,572 9,442 7,592 7,514 23,164 16,956 Net assets beginning of year 129,693 120,251 237,620 230,106 367,313 350,357 Net assets end of year $ 145,265 $ 129,693 $ 245,212 $ 237,620 $ 390,477 $ 367,313 18 Business-type Activities: Business-type activities increased the City's total assets by $7,592,000. The increases in net assets were primarily in the Wastewater, Sanitation, and Airport funds. For all business-type activities, revenues exceeded expenses by $7,797,000. The graphs on the following pages represent a breakdown of revenue by source and expenditures by program area for governmental and business-type activities. 19 Governmental Activities FY2009 Revenue by Source Other Taxes ~'sc• Charges for g~/o Other services 10% 8% Property taxes 59% Grants and Contributions 15% Business-Type Activities FY2009 Revenue by Source 1Vlisc. Other 20 Grants and 6 °Io Cpntri }r iti nnc Governmental Activities FY2009 Expenditures by Program Area (amounts expressed in thousands) Public 24,000 Safety 22,000 20,000 18,000 16,000 Public Works Culture and 14,000 Recreation ~ 12,000 c Econ Dev General A 10,000 Govt 8,000 6,000 Interest Expense 4,000 2,000 0 Program Area Business-Type Activities FY2009 Expenditures by Program Area (amounts expressed in thousands) 14,000 12,000 10,000 ~ 8,000 s. A 6,000 4,000 2,000 0 Program Area Wastewater eatment ater Housing Authority Sanitation Parking S tormwater Airport Cable TV 21 Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The financial reporting focus of the City's governmental .funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the fiscal year ended June 30, 2009, the City's governmental funds reported combined ending fund balances of $42,123,000, an increase of $1,702,000 in comparison with the prior year. Of this total amount, $24,470,000 constitutes unreserved fund balance, which is available to use as working capital for the General Fund since property tax revenues are received only twice a year and the remainder is available to meet the future needs of the City. The remainder of the fund balance (41.9°Io) is reserved to indicate that it is not available for new spending because it has already been committed. This remainder has been committed 1) to liquidate contracts and purchase orders of the prior period ($1,780,000), 2) to fund various debt service payments ($11,759,000), 3) to fund employee retirement commitments ($2,236,000), and 4) restricted by grant agreements ($1,566,000). The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2009, the unreserved fund balance of the General Fund was $15,362,000, while General Fund's total fund balance was $15,917,000. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 32.5°Io of total General Fund expenditures ($47,250,000), while total fund balance represents 33.7% of that same amount. The fund balance of the City's General Fund increased by $983,000 during the current fiscal year. This was due to budget reductions and fee increases in response to the economic conditions. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($1,883,000) as compared to a deficit balance of ($1,595,000) in the prior period. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2010 to cover the capital expenditures. The Debt Service Fund had a fund balance of $11,759,000, an increase of $3,068,000 from the prior year, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). Proprietary Funds: The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The ending net assets of the enterprise funds were $238,102,000, a net asset increase of $7,282,000. This was primarily due to an increase in unrestricted net assets. Of the enterprise funds' net assets, $162,211,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $56,732,000, an increase of $7,562,000 compared to the previous year. The Internal Service funds showed net assets totaling $20,401,000 as of June 30, 2009, an increase of $871,000 from the previous year. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, not by fund or fund type. 22 The City had three budget amendments during the fiscal year, which is higher than our common practice of two amendments. These amendments increased the expenditure budget by $132,920,000 to a total of $274,133,000. This represented a 941% increase. The major increase was due to capital projects in governmental and business-type funds due to timing of completion of projects and ongoing recovery from the flood of 2008. Capital Assets and Debt Administration Capital Assets: The City's investment in capital assets for its governmental and business-type activities as of June 30, 2009 amounts to $421,734,000 (net of accumulated depreciation). This investment in capital assets, including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater and water systems, and other infrastructure represents the value of resources utilized to provide services to its citizens. The City's investment in capital assets for the fiscal year ended June 30, 2009 increased by $10,057,000 for governmental activities compared to the prior year and decreased by $2,629,000 for business- type activities over the prior year. The following table reflects the $421,734,000 investment in capital assets (net of accumulated depreciation). City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2009 2008 2009 2008 2009 2008 Land $ 17,483 $ 15,481 $ 25,783 $ 25,921 $ 43,266 $ 41,402 Buildings 44,973 43,645 74,866 77,703 119,839 121,348 Improvements other than buildings 3,721 3,736 7,233 7,666 10,954 11,402 Machinery and equipment 12,389 12,420 9,265 10,304 21,654 22,724 Infiashuchue 74,458 69,997 131,052 124,641 205,510 194,638 Conshuction in progress 14,306 11,994 6,205 10,799 20,511 22,793 Total $ 167,330 $ 157,273 $ 254,404 $ 257,034 $ 421,734 $ 414,307 Major capital asset events during the current fiscal year included the following: • Airport projects included runway design, grading, lighting, paving, and runway extension. Projects completed during the year totaled $4,899,000 and projects remaining in construction in progress at fiscal year end totaled $3,243,000. • A variety of street and bridge construction in new residential areas and replacement and expansion of existing infrastructure amounted to $5,180,000. This includes the continuation of the McCollister Boulevard extension project at $4,342,000. • The demolition and reconstruction of fire station #2 at a cost of $1,376,000 in FY09 plus prior year costs, for a total cost of $2,860,000. • Improvements to government buildings at a cost of $1,494,000. Additional information on the City's capital assets can be found in Note 5 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $172,810,000. Of this amount, $84,995,000 comprises debt backed by the full faith and credit of the City. 23 However, 5.1% of this total, $4,341,000, is debt that serves enterprise funds and is abated by their charges for services and 7.8% of this total, $6,660,000, is debt that will be paid with Tax Increment Financing revenues. The remaining $87,815,000 represents revenue bonds secured solely by specific revenue sources. City rf Iu~ra City°s fi3utstxuiding i~ebt Cener~l Clbligx7tiQn and Ravenna Sands (amounts expressed in thousands} General obligation bonds Reuenue bonds Total Gaverrunental Aetivitie s x[109 ~[]t18 $ 80,654 $ 82,177 $ 80,54 $ 82,177 Business-typ e Activities ~O[19 ~Qil~ $ 4,341 $ 4,913 87,815 95,345 $ 92,15b $ .100,258 Total ~Ci09 ~00~ $ 84,995 $ 87,090 87,815 95,345 $ 172,810 $ 182,435 During the current fiscal year the City's total bonded debt decreased by $9,625,000. The City issued $30,035,000 in General Obligation bonds during FY09. The bonds were used to finance the cost of the City's 2009 Capital Improvements Programs and current refunding of $23,140,000 of general obligation bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $2,257,000 in future debt service payments and an economic gain of $1,977,000. The City continues to have the same excellent bond rating on its General Obligation bonds that it has had for the past several years. This rating is given to those bonds judged to be of the best quality and carrying the smallest degree of investment risks. The City's bond ratings by Moody's Investors Services, Inc. as of June 30, 2009 were as follows: General obligation bonds Aaa Parking revenue bonds A Wastewater treatment revenue bonds A ` Water revenue bonds A The City continues to operate well under the State debt capacity debt limitations.. State statute limits the amount of General Obligation Debt outstanding to 5% of the assessed value of all taxable property in Iowa City. The current debt limitation for the City is $214,042,000. With outstanding General Obligation Debt applicable to this limit of $84,995,000 we are utilizing 39.7% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. Economic Factors and Next Year's Budget and Rates In May 2009, the voters of Iowa City approved a one cent local option sales tax. This tax will be collected for four years beginning July 1, 2009. Based on current funding projections, the City Council has indicated that the priorities for use of this. sales tax will be the elevation of Dubuque Street, including the reconstruction of Park Road Bridge, and the relocation of the North Wastewater Plant. Sales tax proceeds will be used to provide local match for available state and federal funding and to reduce our reliance on property tax and increased user fees otherwise needed to fund such projects. During the 2009 session, the Iowa State Legislature passed a law allowing cities to utilize franchise fee tax as a reveriue alternative to property tax effective for FY11. The Iowa City Council has passed a local franchise fee tax of 2% on natural gas and electricity to support addition public safety initiatives. 24 The City expects continued constraints by the State's property tax formula. The rollback on residential properties negatively affects the City's general operating funds and without the potential for new revenue sources, like those mentioned above, the City's opportunities for new initiatives are limited. The Council has established a balance budget in the General Fund for FY10 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of taxable valuation for FY10 is provided below: General Levy $ 8.100 Debt Service Levy 4.219 Employee Benefits Levy 3.637 Transit Levy 0.950 Liability Insurance Levy 0.420 Library Levy 0.270 Emergency Levy 0.257 Total City Levy $ 17.853 Requests for Information This report is .designed to provide a general overview of the City of Iowa City's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to City of Iowa City, Finance Department, 4I0 E. Washington Street, Iowa City, IA, 52240. 25 CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS June 30, 2009 (amounts expressed in thousands) Assets Equity in pooled cash and investments Receivables: Property tax Accounts and unbilled usage Interest Notes Internal balances Due from other governments Inventories Restricted assets: Equity in pooled cash and investments Capital assets: Land and construction in progress Other capital assets (net of accumulated depreciation) Total assets Liabilities Accounts payable Contracts payable Accrued liabilities Interest payable Deposits Due to other governments Unearned revenue Noncurrent liabilities: Due within one year: Employee vested benefits Bonds payable Due in more than one year: Employee vested benefits Other Post Employment Benefits Obligation Notes Payable Bonds payable Landfill closure/post-closure liability Total liabilities Governmental Business-type Activities Activities Total $ 48,595 $ 50,184 $ 98,779 46,251 - 46,251 1,018 3,301 4,319 410 851 1,261 13,748 1,349 15,097 (8,596) 8,596 - 7,755 740 8,495 536 401 937 16,871 33,956 50,827 31,788 31,986 63,774 135,542 222,418 357,960 293,918 353,782 647,700 1,643 785 2,428 1,026 870 1,896 3,795 437 4,232 248 2,144 2,392 982 672 1,654 2,006 111 2,117 55,025 - 55,025 1,087 278 1,365 9,430 5,840 15,270 943 232 1,175 465 202 667 211 - 211 71,792 86,353 158,145 - 10,646 10,646 148,653 108,570 257,223 (continued) 26 CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) June 30, 2009 (amounts expressed in thousands) Net Assets Invested in capital assets, net of related debt Restricted for or by: Employee benefits Capital projects Debt service Other purposes Bond ordinance State statute Future improvements Grant agreement Unrestricted Total net assets Governmental Business-type Activities Activities Total $ 100,741 $ 162,211 $ 262,952 2,236 - 2,236 10,960 - 10,960 11,759 - 11,759 65 - 65 - 16,125 16,125 - 802 802 - 272 272 1,566 1,960 3,526 17,938 63,842 81,780 $ 145,265 $ 245,212 $ 390,477 The notes to the financial statements are an integral part of this statement. 27 CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2009 (amounts expressed in thousands) Program Revenues Operating Capital Charges Grants and Grants and Functions/Programs: Expenses for Services Contributions Contributions Governmental activities: Public safety $ 20,730 $ 2,968 $ 1,723 $ 192 Public works 15,177 1,392 1,792 2,328 Culture and recreation 9,574 715 - - Community and economic development 8,726 - 4,670 1,253 General government 7,600 1,626 - - Interest on long-term debt 3,264 - - - Total governmental activities 65,071 6,701 8,185 3,773 Business-type activities: Wastewater Treatment 11,925 12,557 1 266 Water 9,185 8,107 15 132 Sanitation 7,296 8,286 607 - Housing Authority 7,238 181 6,668 - Parking 4,489 5,438 - - Airport 693 248 2 3,239 Stormwater 1,223 622 - 68 Cable television 633 788 - - Total business-type activities 42,682 36,227 7,293 3,705 Total $ 107,753 $ 42,928 $ 15,478 $ 7,478 General revenues: Property taxes, levied for general purposes Road use tax Hotel/motel tax Gas and electric tax Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Total general revenues and transfers Changes in net assets Net assets beginning of year Net assets end of year The notes to the financial statements are an integral part of this statement. 28 Net (Expense) Revenue and Changes in Net Assets Governmental Business-type ~........._. ~........._. T~.~, $ (15,847) $ - $ (15,847) (9,665) - (9,665) (8,859) - (8,859) (2,803) - (2,803) (5,974) - (5,974) (3,264) - (3,264) (46,412) - (46,412) - 899 899 - (931) (931) - 1,597 1,597 - (389) (389) - 949 949 - 2,796 2,796 - (533) (533) - 155 155 - 4,543 4,543 47,085 - 47,085 5,254 - 5,254 713 - 713 776 - 776 3,057 2,577 5,634 - 360 360 4,894 317 5,211 205 (205) - 61,984 3,049 65,033 15,572 7,592 23,164 129,693 237,620 367,313 $ 145,265 $ 245,212 $ 390,477 29 CITY OF IOWA CITY, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2009 (amounts expressed in thousands) Special Revenue Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Assets Equity in pooled cash and investments $ 16,710 $ 2,092 $ 2 $ 925 $ 10,637 $ 1,224 $ 31,590 Receivables: Property tax 24,949 9,965 - - 11,308 29 46,251 Accounts and unbilled usage 858 - - - - 160 1,018 Interest 145 17 - 13 65 42 282 Notes 108 - 11,391 622 1,627 - 13,748 Advances to other funds - - 18 - 218 - 236 Due from other governments 2,323 152 18 2,704 - 2,503 7,700 Inventories 204 - - - - - 204 Restricted assets: Equity in pooled cash and investments 2,233 - - 4 - 14,634 16,871 Total assets $ 47,530 $ 12,226 $ 11,429 $ 4,268 $ 23,855 $ 18,592 $ 117,900 (continued) 30 CITY OF IOWA CITY, IOWA BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2009 (amounts expressed in thousands) Special Revenue Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Liabilities and Fund Balances Liabilities: Accounts payable $ 1,006 $ 47 $ 13 $ 149 $ 11 $ 156 $ 1,382 Contracts payable - - - - - 1,026 1,026 Accrued liabilities 1,460 2 7 113 - 51 1,633 Advances from other funds 1,504 - - 218 - - 1,722 Due to other governments 2 - - 41 - 1,963 2,006 Deferred revenue 26,663 9,941 11,409 4,463 12,085 2,465 67,026 Liabilities payable from restricted assets: Deposits 978 - - 4 - - 982 Total liabilities 31,613 9,990 11,429 4,988 12,096 5,661 75,777 Fund balances: Reserved for: Inventories 204 - - - - - 204 Encumbrances 243 - - 9 - 1,528 1,780 Debt service - - - - 11,759 - 11,759 Employee retirement commitments - 2,236 - - - - 2,236 Perpetual care 108 - - - - - 108 Restricted by grant agreement - - - 1,566 - - 1,566 Unreserved Undesignated: General fund 15,362 - - - - - 15,362 Special revenuefunds - - - (2,295) - 443 (1,852) Capital projects funds - - - - - 10,960 10,960 Total fund balances 15,917 2,236 - (720) 11,759 12,931 42,123 Total liabilities and fund balances $ 47,530 $ 12,226 $ 11,429 $ 4,268 $ 23,855 $ 18,592 $ 117,900 The notes to the fincuacial statements are an integral part of this statement. 31 CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2009 (amounts expressed in thousands) Total governmental fund balances $ 42,123 Amounts reported for governmental activities in the statement of net assets are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Frepaid insurance benefits future periods and is included in governmental activities in the statement of net assets. Other long-term assets are not available to pay for current period expenditures and therefore are deferred in the funds: Notes receivable -Earned but unavailable Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds. Bonds payable are not due and payable in the current period and therefore are not reported in the funds. Notes payable are not due and payable in the current period and therefore are not reported in the funds. Accrued interest on bonds Internal balance due to integration of internal service funds Total net assets of governmental activities The notes to the financial statements are an integral part of this statement. 20,401 12,001 161,920 (1,912) (477) (81,222) (211) ~~g) (7,110) $ 145,265 32 CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Revenues Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total revenues Expenditures Current Public safety Public works Culture and recreation Community and economic development General government Debt service: Principal Interest Capital outlay Total expendihues Excess (deficiency) of revenues over (under) expenditures Other Financing Sources (Uses) Issuance of debt Issuance of refunding debt Sale of capital assets Premium on issuance of bonds Payment of refunded bonds Transfers in Transfers out Total other financing sources and (uses) Net change in fund balances Fund Balances, Beginning Fund Balances, Ending Special Revenue Community Other Development Shued Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total $ 24,731 $ 9,069 $ - $ - $ 11,084 $ 3,688 $ 48,572 1,284 - - - - - 1,284 5,761 - 1,386 9,801 - 2,573 19,521 2,237 200 - 61 - - 2,498 1,817 - - 81 447 300 2,645 4,468 5 284 75 383 87 5,302 40,298 9,274 1,670 10,018 11,914 6,648 79,822 17,956 249 - - - 547 18,752 6,497 - - 4,768 - 1,140 12,405 10,644 - - - - 205 10,849 1,082 - 1,612 3,659 - 1,684 8,037 6,846 306 - - 75 73 7,300 - - - - 8,418 - 8,418 - - - - 3,364 - 3,364 4,225 - 16 3,369 - 9,486 17,096 47,250 555 1,628 11,796 11,857 13,135 86,221 (6,952) 8,719 42 (1,778) 57 (6,487) (6,399) - - - - - 7,190 7,190 - - - - 22, 845 - 22, 845 194 - - - - 360 554 - - - - 393 159 552 - - - - (23,140) - (23,140) 8,660 - - 434 2,913 4,479 16,486 (919) (8,224) (50) (1,497) - (5,696) (16,386) 7,935 (8,224) (50) (1,063) 3,011 6,492 8,101 983 495 (8) (2,841) 3,068 5 1,702 14,934 1,741 8 2,121 8,691 12,926 40,421 $ 15,917 $ 2,236 $ - $ (720) $ 11,759 $ 12,931 $ 42,123 The notes to the,financial statements are an integral part of this statement. 33 34 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2009 (amounts expressed in thousands) Net change in fund balances -total governmental funds $ 1,702 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets $ 16,879 Capital assets contributed 204 Depreciation expense (5,488) 11,595 Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets. Debt issued (30,035) Premium on bonds issued (552) Repayments of debt 31,558 Amortization of premium 75 1,046 The issuance of notes payable are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing notes increases long-term liabilities and does not affect the statement of activities. - Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues and are deferred in the governmental funds. 2,584 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in accrued compensated absences (53) Change in accrued post employment benefit obligations (477) Change in accrued interest on debt 25 Impairment of capital assets (179) In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital asset sold. (1,223) Prepaid items in the governmental funds have been recorded as expenditures when paid. However, the statement of activities will report these items as expenses in the period that the corresponding net asset is exhausted. (9) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 561 Change in net assets of governmental activities $ 15,572 The notes to the financial statements are an integral part of this statement. 35 CITY OF IOWA CITY, IOWA STA TEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2009 (amounts expressed in thousands) Governmental Business-type Activities -Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Assets Current assets: Equity in pooled cash and investments $ 4,511 $ 11,704 $ 12,132 $ 15,845 $ 3,409 $ 2,583 $ 50,184 $ 17,005 Receivables: Accounts and unbilled usage 35 1,255 805 957 5 244 3,301 - Interest 93 188 290 207 54 19 851 128 Notes - - - 5 1,344 - 1,349 - Advances to other funds - - - 5,253 - - 5,253 - Due from other governments - 22 15 27 52 624 740 55 Inventories - - 401 - - - 401 332 Total current assets 4,639 13,169 13,643 22,294 4,864 3,470 62,079 17,520 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 2,211 12,544 4,272 12,849 1,960 120 33,956 - Capital assets: Land 6,798 695 6,296 1,787 726 9,480 25,782 45 Buildings 24,908 59,485 23,461 999 5,869 4,304 119,026 831 Improvements other than buildings 166 7,365 2,331 121 9 357 10,349 50 Machinery and equipment 446 9,909 10,433 153 122 635 21,698 13,163 Infiastructure - 86,797 47,104 10,873 - 41,146 185,920 1,006 Accumulated depreciation (13,368) (58,672) (18,975) (8,981) (3,525) (11,054) (114,575) (9,884) Construction in progress 567 165 782 1,107 - 3,583 6,204 199 Total noncurrent assets 21,728 118,288 75,704 18,908 5,161 48,571 288,360 5,410 Total assets 26,367 131,457 89,347 41,202 10,025 52,041 350,439 22,930 (continued) 36 CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) PROPRIETARY FUNDS June 30, 2009 (amounts expressed in thousands) Governmental Business-type Activities -Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities: Accounts payable $ 36 $ 133 $ 178 $ 141 $ 27 $ 270 $ 785 $ 261 Conti acts payable 5 - 53 221 - 591 870 - Accrued liabilities 158 170 243 234 81 61 947 2,280 Due to other governments - - 34 64 13 - 111 - Interestpayable 287 1,249 608 - - - 2,144 - Bonded debt payable (net of unamortized discounts) 386 4,195 1,259 - - - 5,840 - Total current liabilities 872 5,747 2,375 660 121 922 10,697 2,541 Noncurrent liabilities: Liabilities payable fiom restricted assets: Deposits 2 - 415 13 233 9 672 - Advances fiom other funds 2,450 - - - 18 1,299 3,767 - Bonded debt payable (net of unamortized discounts) 9,211 50,775 26,367 - - - 86,353 - Other Post Employment Benefits Obligation 32 40 49 53 15 13 202 (12) Landfill closuie/postclosuie liability - - - 10,646 - - 10,646 - Total noncurrent liabilities 11,695 50,815 26,831 10,712 266 1,321 101,640 (12) Total liabilities 12,567 56,562 29,206 11,372 387 2,243 112,337 2,529 Net Assets Invested in capital assets, net of related debt 9,920 50,774 43,806 6,059 3,201 48,451 162,211 5,410 Restricted by bond ordinance 1,651 11,295 3,179 - - - 16,125 - Restricted by state statute - - - 802 - - 802 - Restricted for fuhue improvements 272 - - - - - 272 - Restricted by giant agreement - - - - 1,960 - 1,960 - Unrestricted 1,957 12,826 13,156 22,969 4,477 1,347 56,732 14,991 Total net assets $ 13,800 $ 74,895 $ 60,141 $ 29,830 $ 9,638 $49,798 238,102 $ 20,401 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. Net assets of business-type activities The notes to the financial statements are an integral part of this statement. 7,110 $ 245,212 37 38 CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Governmental Business-typ e Activities - Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Operating Revenues: Charges for services $ 5,438 $12,557 $ 8,107 $ 8,286 $ 181 $ 1,658 $ 36,227 $ 15,472 Miscellaneous 4 84 86 58 53 32 317 17 Total operating revenues 5,442 12,641 8,193 8,344 234 1,690 36,544 15,489 Operating Expenses: Personal services 1,845 1,848 2,316 2,363 927 695 9,994 2,010 Commodities 196 853 768 375 55 249 2,496 2,261 Services and charges 983 2,501 2,642 4,160 6,096 445 16,827 9,895 3,024 5,202 5,726 6,898 7,078 1,389 29,317 14,166 Depreciation 871 4,155 2,124 592 157 1,156 9,055 1,131 Total operating expenses 3,895 9,357 7,850 7,490 7,235 2,545 38,372 15,297 Operating income (loss) 1,547 3,284 343 854 (7,001) (855) (1,828) 192 Nonoperating Revenues (Expenses): Gain on disposal of capital assets 214 131 - - 15 - 360 44 Operating grants - 1 15 607 6,668 2 7,293 - Interestincome 188 820 625 682 205 57 2,577 413 Interest expense (578) (2,578) (1,351) - - - (4,507) - Totalnonoperatingrevenues(expenses) (176) (1,626) (711) 1,289 6,888 59 5,723 457 Income (loss) before capital contributions and transfers 1,371 1,658 (368) 2,143 (113) (796) 3,895 649 Capital contributions - 266 132 - - 3,307 3,705 4 Transfers in - 148 469 - 50 515 1,182 277 Transfers out (205) (296) (698) (104) - (197) (1,500) (59) Change in net assets 1,166 1,776 (465) 2,039 (63) 2,829 7,282 871 Net Assets, Beginning i~ ~zn ~z i i a ~n ~n~ ~~ poi a ~ni n~ ono i a szn Net Assets, Ending $ 13,800 $74,895 $60,141 $29,830 $ 9,638 $49,798 $ 20,401 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 310 Change in net assets of business-type activities $ 7,592 The notes to the fincuacial statements are an integral part of this statement. 39 CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Ye~u Ended June 30, 2009 (amounts expressed in thousands) Cash Flows From Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows from operating activities Cash Flows From Noncapital Financing Activities Grants received Transfers from other funds Transfers to other funds Repayrnent/(payrnent) of notes receivable Advances from other funds Advances to other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Capital grants received Acquisition and construction of property and equipment Proceeds from sale of property Proceeds from issuance of refunding debt (principal plus premium & less discount) Principal paid on bonded debt Interest paid on bonded debt Net cash flows from capital and related financing activities Cash Flows From Investing Activities Interest on investments Net increase (decrease)in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Govemmenttl Business-type Activities -Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds $ 5,531 $ 12,694 $ 8,240 $ 8,738 $ 231 $ 1,701 $37,135 $ 15,606 (1,181) (3,322) (3,612) (4,081) (6,204) (659) (19,059) (12,708) (1,786) (1,772) (2,231) (2,292) (902) (692) (9,675) (1,906) 2,564 7,600 2,397 2,365 (6,875) 350 8,401 992 - - - 609 6,644 - 7,253 - - 138 469 - 50 515 1,172 277 (205) (296) (698) (94) - (197) (1,490) (59) 170 - - 4 39 - 213 - (600) - - - - 94 (506) - - - - 721 - - 721 - (635) (158) (229) 1,240 6,733 412 7,363 218 - - - - - 3,249 3,249 - (636) (157) (634) (351) (289) (3,909) (5,976) (1,002) 484 131 - - 58 6 679 55 - 33,636 17,004 - - - 50,640 - (370) (38,645) (18,893) - - - (57,908) - (584) (2,813) (1,352) - - - (4,749) - (1,106) (7,848) (3,875) (351) (231) (654) (14,065) (947) 149 1,411 561 693 200 73 3,087 428 972 1,005 (1,146) 3,947 (173) 181 4,786 691 $ 6,722 $ 24,248 $16,404 $ 28,694 $ 5,369 $ 2,703 $ 84,140 $ 17,005 (continued) 40 CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Governmental Business-type Activities -Enterprise Funds Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) $ 1,547 $ 3,284 $ 343 $ 854 $ (7,001) $ (855) $ (1,828) $ 192 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbIlled usage Due from other governments Inventories Accounts payable Accrued liabIlities Due to other governments Deposits Other Post Employment Benefits Obligation Landfill closure/postclosure liability 871 4,155 2,124 592 93 55 42 379 - (2) 1 13 - - (37) - (2) 32 (177) (84) 27 36 36 18 - - 12 (10) (4) - 4 2 32 40 49 53 - - - 548 Total adjustments 1,017 4,316 2,054 1,511 Net cash flows from operating activities $ 2,564 $ 7,600 $ 2,397 $ 2,365 157 1,156 9,055 1,131 (1) 12 580 3 4 - 16 114 - - (37) (11) (56) 35 (252) (541) 10 (10) 117 116 3 - 5 - (6) (1) (5) - 15 13 202 (12) - - 548 - 126 1,205 10,229 800 $ (6,87 $ 350 $ 8,401 $ 992 Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others $ - $ 247 $ 132 $ - $ - $ 68 $ 447 $ 4 The notes to the, financial statements are an integral part of this statement. 41 CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES June 30, 2009 (amounts expressed in thousands) Assets Equity in pooled cash and investments Accounts receivable Interest receivable Total assets Liabilities Accrued liabilities Due to agency Total liabilities The notes to the financial statements are an integral part of this statement. Agency Funds $ 234 6 2 $ 242 $ 10 232 $ 242 42 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2009 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the CounciUManager form of government. The City provides a broad range of services to its citizens including general government, a mass transportation system, public safety, streets, parks, and cultural facilities. It also operates an airport, parking facilities, water treatment, wastewater treatment, stormwater collection, sanitation collection and disposal (including landfill operations), cable television, and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. There were no component units required to be included. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City's water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 43 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned or administered by the City or for which the City acts as custodian. The 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, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, net assets, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its "measurement focus." The government-wide financial statements and proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. The Community Development Block Grant Fund accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. The Other Shared Revenue and Grants Fund accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Debt Service Fund accounts for the accumulation of resources for and the payment of general long-term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Parking Fund is used to account for the operation and maintenance of the "on" and "off' street public parking facilities. The Wastewater Treatment Fund is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Housing Authority Fund is used to account for the operations and activities of the City's low and moderate income housing assistance and public housing programs. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information Technology Fund. The City also reports fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has two fiduciary funds which are maintained as agency funds, with no attempt to create an ongoing fund balance. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of landfill closure and post-closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are processed. Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and 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 tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded, the related revenue is deferred in both the government-wide and fund financial statements and will not be recognized as revenue until the year for which it is levied. Federal and state grants are recorded as receivables and the revenue is recognized during the period in which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual criteria are met. Income from investments in all fund types and from charges for services in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the General Fund, Water Fund, and the Equipment Maintenance Fund. 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. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City follows the policy of not capitalizing an asset with an initial, individual cost of less than $50,000 for infrastructure assets and $5,000 for remaining assets. Such assets are recorded at original purchase cost or at fair value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 - 100 years Buildings and structures 20 - 50 years Improvements other than buildings 15 - 50 years Vehicles 2 - 20 years Other equipment 5 - 30 years Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government-wide statements, they are amortized over the life of the bonds. Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee's then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions The provision for pension cost is recorded on the accrual basis (based on statutorily determined contribution rates), and the City's policy is to fund pension costs as they accrue. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 7). Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 of each year to become effective July 1, and constitutes the City's appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital outlay Business-type b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out The legal level of control (the level at which expenditures may not legally exceed appropriations) is the function level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a function, within a fund type, and between fund types, without the approval of the governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The City's budget for revenue focuses on 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 function budget. Annual operating budgets are adopted for the internal service funds for management control purposes. Such budgets, however, are not legally required to be adopted under state statutes. These budgets are adopted and amended at the same time and in the same manner as the City's annual function budget. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the end of the preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between programs. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed, and the effects of those amendments are shown in the accompanying budgetary comparison schedule. The original budget was increased by $205,700,000 in revenues and other financing sources and by $219,660,000 in expenditures and other financing uses. Appropriations as adopted or amended, and not encumbered, lapse at the end of the fiscal year. As allowed by GASB Statement No. 41, Budgetary Comparison Schedules -Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund's purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. 2. Compliance and Accountability At June 30, 2009 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $1,883,000. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2010 to cover the capital expenditures. At June 30, 2009 the Other Shared Revenue and Grants Fund reported a deficit balance of $720,000. The deficit is due to flood expenditures related to home buyouts and down payment assistance. The City will be receiving funds from the Iowa Department of Economic Development and the Iowa Finance Authority to cover these expenditures. 3. Cash and Pooled Investments The City's deposits in banks at June 30, 2009 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open-end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; certain joint investment trusts; and warrants or improvement certificates of a drainage district. Investments are stated at fair value. In addition, the City had investments in the Iowa Public Agency Investment Trust, which are valued at an amortized cost of $31,170,349 pursuant to Rule 2a-7 under the Investment Company Act of 1940. Interest rate risk. The City's investment policy limits the investment of general and operating funds to one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the average maturity of each fund's portfolio shall not exceed 397 days. Funds not identified as operating funds may be invested in instruments whose maturities do not exceed five years at the time of purchase. Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's Investors service as it is a state security that is backed by the full faith and credit of the issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. The aforementioned Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Due to legal and budgetary reasons, the general fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. so CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2009, consisted of the following: Advances from Community Development Debt Block Grant Service Sanitation Total Advances to: General $ - $ - $ 1,503,545 $ 1,503,545 Other Shared Revenue and Grants - 218,275 - 218,275 Parking - - 2,450,183 2,450,183 Housing Authority 18,000 - - 18,000 Nonmajor enterprise - - 1,299,238 1,299,238 Total $ 18,000 $ 218,275 $ 5,252,966 $ 5,489,241 Interfund balances at June 30, 2009, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans and land. $1,275,068 of the $1,299,238 advances to the Nonmajor Enterprise Funds and $2,370,821 of the $2,450,183 advance to the Parking Fund are not expected to be repaid within the next year. $1,287,850 of the $1,503,545 advances to the General Fund and $207,973 of the $218,275 advance to the Other Shared Revenue and Grants Fund are not expected to be repaid within the next year. None of the $18,000 advance to Housing Authority is expected to be repaid within the next year. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Interfund transfers for the year ended June 30, 2009, consisted of the following: Transfer from Transfer to General Debt service Other shared revenue and grants Nonmajor governmental Wastewater treatment Water Housing Authority Nonmajor enterprise Internal Service Total Transfer to Other Community Shared Employee Development Revenue and Nonmajor General Benefits Block Grant Grants Governmental $ - $ 7,887,662 $ - $ 59,986 $ - 93,584 - - 63,262 2,727,402 3,826 336,262 - - 93,798 359,191 - - 1,327,269 2,136,035 137,774 - - - - ll0,542 - - - 352,236 - - 49,525 - - 128,ll5 - - - 386,861 $ 919,266 $ 8,223,924 $ 49,525 $ 1,496,538 $ 5,696,332 (continued) Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Transfer from Wastewater Nonmajor Internal Total Parking Treatment Water Sanitation Enterprise Service Transfer from $ 200,000 $ 171,757 $ 172,796 $ - $ 168,264 $ - $ 8,660,465 - - - - 28,486 - 2,912,734 - - - - - - 433,886 - 124,684 477,000 2,734 - 52,425 4,479,338 - - - 9,902 - 53 147,729 - - - - - 6,274 469,052 - - - - - 137 49,662 - - - - - - 514,976 5,250 - 47,895 91,731 - - 277,131 $ 205,250 $ 296,441 $ 697,691 $ 104,367 $ 196,750 $ 58,889 $ 17,944,973 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 5. Capital Assets Capital asset activity for the year ended June 30, 2009, was as follows: Beginning Acquisitions Disposals and Balance June July 1,2008 and Transfers Transfers 30,2009 Governmental activities: Capital assets, not being depreciated Land $ 15,481,745 $ 2,313,900 $ 312,739 $ 17,482,906 Construction in progress 11,994,137 10,864,242 8,552,811 14,305,568 Total capital assets, not being depreciated 27,475,882 13,178,142 8,865,550 31,788,474 Capital assets, being depreciated: Buildings 58,816,250 3,378,859 913,848 61,281,261 Improvements other than buildings 5,207,991 228,574 91,267 5,345,298 Machinery and equipment 35,799,591 3,224,628 1,785,874 37,238,345 Infrastructure 90,713,853 6,628,384 - 97,342,237 Total capital assets being depreciated 190,537,685 13,460,445 2,790,989 201,207,141 Less accumulated depreciation for: Buildings 15,171,558 1,532,381 396,221 16,307,718 Improvements other than buildings 1,471,948 205,590 53,035 1,624,503 Machinery and equipment 23,380,199 2,714,174 1,245,002 24,849,371 Infrastructure 20,717,043 2,166,869 - 22,883,912 Total accumulated depreciation 60,740,748 6,619,014 1,694,258 65,665,504 Total capital assets, being depreciated, net Governmental activities capital assets, net $ 157,272,819 $ 20,019,573 $ 9,962,281 $ 167,330,111 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Beginning Acquisitions Disposals and Balance June July 1, 2008 and Transfers Transfers 30, 2009 Business-type activities: Capital assets, not being depreciated: Land $ 25,920,593 $ 55,000 $ 192,460 $ 25,783,133 Construction in progress 10,799,218 5,033,111 9,627,643 6,204,686 Total capital assets, not being depreciated 36,719,811 5,088,111 9,820,103 31,987,819 Capital assets, being depreciated: Buildings 118,764,725 526,480 265,173 119,026,032 Improvements other than buildings 10,412,335 - 63,893 10,348,442 Machinery and equipment 21,511,385 247,791 60,122 21,699,054 Infrastructure 175,345,529 11,193,401 618,153 185,920,777 Total capital assets being depreciated 326,033,974 11,967,672 1,007,341 336,994,305 Less accumulated depreciation for: Buildings 41,061,815 3,217,870 120,240 44,159,445 Improvements other than buildings 2,745,777 433,605 63,893 3,115,489 Machinery and equipment 11,207,464 1,271,241 44,442 12,434,263 Infrastructure 50,703,898 4,164,367 - 54,868,265 Total accumulated depreciation 105,718,954 9,087,083 228,575 114,577,462 Total capital assets, being depreciated, net 220,315,020 2,880,589 778,766 222,416,843 Business-type activities capital assets, net $ 257,034,831 $ 7,968,700 $ 10,598,869 $ 254,404,662 Depreciation expense was charged to functi ons as follows: Governmental activities: Public safety $ 586,320 Public works 2,719,122 Culture and recreation 1,875,677 Community and economic development 37,060 General government 269,897 Internal service funds 1,130,938 Total depreciation expense -governmental a ctivities $ 6,619,014 Business-type activities Parking $ 871,351 Wastewater treatment 4,154,961 Water 2,123,530 Sanitation 591,679 Housing authority 156,690 Nonmajor enterprise 1,155,537 Total depreciation expense -business-type activities $ 9,053,748 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 As a result from last year's flood to the Iowa River it was determined that the City had multiple assets that were impaired and recorded a total impairment loss of $820,510. The total amount of impairment was calculated from the following funds: Governmental Activities $178,562, Water $618,153, and Sewer $23,795. As of June 30th, 2009, the carrying value of the impaired assets is $2,102,950. As a result the City did receive insurance proceeds and are broken out as follows: Governmental Activities $33,684, Water $156,078, and Sewer $155,039. 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: General obligation bonds $ 82,177,395 $ 30,035,000 $ 31,558,235 $ 80,654,160 $ 9,354,538 Plus: Unamortized Premium 91,137 551,525 74,289 568,373 74,289 $ 82,268,532 $ 30,586,525 $ 31,632,524 $ 81,222,533 $ 9,428,827 Business-type activities: General obligation bonds $ 4,912,605 $ - $ 571,765 $ 4,340,840 $ 590,462 Less: Unamortized Discounts 26,895 - 3,842 23,053 3,842 Total general obligation bonds 4,885,710 - 567,923 4,317,787 586,620 Revenue bonds 95,345,000 49,805,000 57,335,000 87,815,000 5,275,000 Less: Unamortized Discounts (Premium) 795,614 (834,874) 21,595 (60,855) 21,595 Total revenue bonds 94,549,386 50,639,874 57,313,405 87,875,855 5,253,405 $ 99,435,096 $ 50,639,874 $ 57,881,328 $ 92,193,642 $ 5,840,025 General Obligation Bonds Various issues of general obligation bonds totaling $84,995,000 are outstanding as of June 30, 2009. The bonds have interest rates ranging from 1.5°Io to 5.6°Io and mature in varying annual amounts ranging from $90,000 to $2,195,000 per issue, with the final maturities due in the year ending June 30, 2023. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise 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. 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 Governmental Activities Business-type Activities Principal Interest Principal Interest 2010 9,354,538 3,063,930 590,462 161,826 2011 9,570,840 2,756,034 604,160 140,850 2012 9,877,143 2,427,730 622,857 119,247 2013 8,853,445 2,082,934 641,554 96,592 2014 8,558,446 1,771,924 636,555 71,997 2015-2019 29,249,748 4,396,151 1,245,252 80,623 2020-2024 5,190,000 541,079 - - Total $ 80,654,160 $ 17,039,782 $ 4,340,840 $ 671,135 On October 15, 2008, the City issued $17,005,000 of general obligation bonds for a current refunding of $17,080,000 of general obligation bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,649,714 in future debt service payments and an economic gain of $1,416,867. On June 8, 2009, the City issued $5,840,000 of general obligation bonds for a current refunding of $6,060,000 of general obligation bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $607,283 in future debt service payments and an economic gain of $560,372. Revenue Bonds As of June 30, 2009, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 11,350,000 $ 68,975,000 $ 25,365,000 Interest rates 5.9°Io to 6.0°Io 3.0°Io to 5.0°Io 2.0°Io to 4.65°Io Annual maturities $ 390,000 to $ 260,000 to $ 330,000 to $ 895,000 $ 3,010,000 $ 835,000 Amount outstanding $ 9,665,000 $ 54,770,000 $ 23,380,000 s~ CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 Business-type Activities Principal Interest 2010 5,275,000 3,924,037 2011 6,240,000 3,472,389 2012 6,575,000 3,231,351 2013 6,795,000 2,975,848 2014 5,035,000 2,746,075 2015-2019 28,625,000 10,356,513 2020-2024 24,635,000 3,697,709 2025-2029 4,635,000 190,744 $ 87,815,000 $ 30,594,666 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 maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Parking Revenue and Water Revenue bonds -maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds - 125°Io of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds, $5,000 per month until the reserve balance equals or exceeds $300,000 for Parking Revenue bonds and $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. ss CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 On October 15, 2008, the City issued $24,280,000 of wastewater revenue bonds for a current refunding of $24,810,000 of wastewater revenue bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $3,245,227 in future debt service payments and an economic gain of $2,516,712. Also, on October 15, 2008, the City issued $7,115,000 of water revenue bonds for a current refunding of $7,045,000 of water revenue bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $571,390 in future debt service payments and an economic gain of $424,441. On May 18, 2009, the City issued $8,660,000 of wastewater revenue bonds for a current refunding of $9,220,000 of wastewater revenue bonds on July 1, 2009. As a result, the refunded wastewater revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,479,329 in future debt service payments and an economic gain of $1,148,058. Also, on May 18, 2009, the City issued $9,750,000 of water revenue bonds for a current refunding of $9,895,000 of water revenue bonds on July 1, 2009. As a result, the refunded water revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,407,282 in future debt service payments and an economic gain of $1,040,086. 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) Date of Amount Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2009, are comprised of the following issues: General Obligation Bonds: Multi-Purpose and Library Construction May 2002 Refunded Multi-Purpose (1) Oct 2002 Multi-Purpose Nov. 2003 Taxable-Urban Renewal Mar. 2004 Multi-Purpose Mar. 2005 Multi-Purpose Jun. 2006 Multi-Purpose Jun. 2006 Refunded Water Construction (2) Sep. 2006 Multi-Purpose May 2007 Multi-Purpose June 2008 Refunded Multi-Purpose Oct. 2008 Multi-Purpose June 2009 Taxable- Housing Improvemnts June 2009 Refunded Multi-Purpose June 2009 Total General Obligation Bo nds Date of Issue Revenue Bonds: Parking Bonds Wastewater Treatment Bonds Refunded Wastewater Treatment Bonds (3) Refunded Wastewater Treatment Bonds (4) Refunded Wastewater Treatment Bonds (5) Water Bonds Refunded Water Bonds (6) Refunded Water Bonds (7) Total Revenue Bonds June 30, 2009 Interest Final Rates Maturity Outstanding June 30, 2009 $ 29,100,000 3.5 - 5.0 6/21 $ 16,895,000 10,600,000 2.5 - 4.0 6/15 2,470,000 5,570,000 2.5 - 3.6 6/14 2,710,000 7,305,000 4.0 - 5.4 6/23 6,660,000 7,020,000 3.0 - 4.0 6/15 4,505,000 6,265,000 3.625 - 4.0 6/16 4,690,000 1,000,000 5.5 - 5.6 6/16 765,000 3,350,000 3.6 - 3.75 6/17 2,415,000 8,870,000 3.75 6/17 7,350,000 9,150,000 3.25 - 3.75 6/18 8,355,000 17,005,000 3.0 - 3.75 6/18 15,150,000 6,685,000 2.5 - 4.0 6/19 6,685,000 505,000 1.5 - 3.0 6/14 505,000 5,840,000 2.0 - 4.0 6/16 5,840,000 Amount Interest Issued Rates $ 84,995,000 Outstanding June 30, 2009 Dec. 1999 $ 11,350,000 5.875 - 6.0 Final Maturity 7/24 Dec. 2001 10,250,000 4.5 - 5.0 7/20 Apr. 2002 25,785,000 3.25 - 4.1 7/12 Oct. 2008 24,280,000 3.0 - 5.0 7/22 May2009 8,660,000 3.5 - 5.0 7/25 Oct 2002 8,500,000 2.0 - 4.65 7/22 Oct 2008 7,115,000 3.0 - 4.375 7/24 May 2009 9,750,000 4.0 - 4.5 7/25 $ 9,665,000 10,250,000 11,580,000 24,280,000 8,660,000 6,515,000 7,115,000 9,750,000 87,815,000 $ 172,810,000 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 (1) This bond issue has a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. (2) This bond issue has the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. Also, this bond issue refunds the November 1997 Water Construction General Obligation Bonds. (3) This bond issue refunds the January 1993 Wastewater Revenue Bonds. (4) This bond issue refunds the March 1996, May 1997, and January 1999 Wastewater Revenue Bonds. (5) This bond issue refunds the October 2000 Wastewater Revenue Bonds. (6) This bond issue refunds the May 1999 Water Revenue Bonds. (7) This bond issue refunds the December 2000 Water Revenue Bonds. 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 respective bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2009, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $39,501,549. Debt Legal Compliance Legal Debt Margin: As of June 30, 2009, the general obligation debt issued by the City did not exceed its legal debt margin computed as follows: Assessed valuation: Real property $ 4,215,084,214 Utilities 65,749,643 Total valuation $ 4,280,833,857 Debt limit, 5% of total assessed valuation $ 214,041,693 Debt applicable to debt limit: General obligation bonds 84,995,000 Legal debt margin $ 129,046,693 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 7. Other Long-term Liabilities Notes Payable Changes in Long-Term Liabilities -Notes Payable Note Payable activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: 211,000 - - 211,000 - A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1°10, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. Employee Vested Benefits Changes in Long-Term Liabilities -Employee Vested benefits Employee Vested Benefits activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: $ 1,962,290 $ 1,117,493 $ 1,049,665 $ 2,030,118 $ 1,087,269 Business-type activities: $ 494,369 $ 282,016 $ 265,936 $ 510,449 $ 278,551 For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. Landfill Closure /Post-Closure Care Costs Changes in Long-Term Liabilities -Landfill Closure Post-closure Care Costs Landfill Closure Post-closure care activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Business-type activities: $ 10,097,691 $ 548,244 $ _ $ 10,645,935 $ - In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post-closure Care Costs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post-closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on the amount of the landfill used during the year. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The estimated liability for landfill closure and post-closure care costs as of June 30, 2009, is approximately $10,645,935, which is based on 81.9% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,688,700 will be recognized as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2009, was determined by engineers from Howard R. Green Company and approximated $12,998,700. 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, 2009. These amounts are based on an estimated post- closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and post-closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post-closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2009, the Sanitation Fund had $12,033,534 in related equity in pooled cash and investments, at fair value designated for satisfaction of post-closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post-closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post-closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. Other Post Employment Benefits Changes in Long-Term Liabilities -Other Post Employment Benefits Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: $ - $ 464,700 $ - $ 464,700 $ - Business-type activities: $ - $ 201,091 $ - $ 201,091 $ - The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other Than Pensions during the year ended June 30, 2009. Plan Description: The City operates two self-funded medical and dental plans, one for Police and Fire Union employees and one for all other employees, which are offered to current and retired employees and their dependents. All full-time employees who retire or terminate/resign and their eligible dependents are offered the following post-employment benefit options: Health insurance and dental insurance -The option of continuing with the City's health insurance plan at the individual's expense. These benefits cease upon Medicare eligibility. Life insurance -The option of converting the employee's City-paid policy to an individual policy at the individual's expense with the City's life insurance carrier. 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Long-term disability -For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee's City-paid group policy to a personal policy at the individual's expense with the City's long-term disability insurance carrier. The above options, while at the individual's own expense, are included within the City's overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Fundin Policy: The contribution requirements of plans members are established and maybe amended by the City. The City currently finances the benefit plans on apay-as-you-go basis. Annual OPEB Cost and Net OPEB Obli ag tion: The City's annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB Statement Na 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the City's annual OPEB cost for the' year ended June 30, 2009, the amount actually contributed to the plans, and changes in the City's net OPEB obligation: Annual required contribution $1,288;466 Interest on net OPEB obligation - Adjustment to annual required contribution - Annual OPEB costs 1,288,466 Contributions made 622,675 Increase in net OPEB obligation 665,791 Net OPEB obligation beginning of year - Net OPEB obligation end of year $ 665,791 For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding requirements and the actual contributions for the year ended June 30,- 2009. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plans and the net OPEB obligation as of June 30, 2009 are summarized as follows: Percentage of Annual Annual OPEB Cost Net OPEB Year Ended OPEB Cost Contributed from City Obli ag tion June 30, 2009 $1,288,466 51.67% $665,791 Funded Status and FundingProgress: As of July 1, 2008, the most recent actuarial valuation date for the period July 1, 2008 through June 30, 2009, the actuarial accrued liability was $15,235,196, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $15,235,196. The covered payroll (annual payroll of active employees covered by the plans) was $32,804,905 and the ration of the i7AAL to covered payroll was 46.44%. As of June 30, 2009, there were no trust fund assets. 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Actuarial Methods and Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumption about future employments, mortality, and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. The required schedule of funding progress, presented as required supplementary information in the section following the Notes to Financial Statements, will present multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plans members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plans members in the future. As of the July 1, 2008 actuarial valuation date, the actuarial cost method used is the entry age normal method. The actuarial assumption includes a 4°Io discount rate. The projected annual medical trend rate is 10.5°Io. The ultimate medical trend rate is 6%. The medical trend rate is reduced by 0.5°Io each year until reaching the 6°Io ultimate trend rate. The projected annual dental trend rate is 6.0°Io. The ultimate dental trend rate is 4°Io. The dental trend rate is reduced by 0.5°Io each year until reaching the 4°Io ultimate trend rate. Mortality rates for active employees are from the RP-2000 Employee Table and for retirees are from RP- 2000 Healthy Annuitant Table, applied on agender-specific basis. Annual retirement and termination probabilities were developed from the retirement probabilities from the MFPRSI and IPERS pension plan turnover tables, adjusted to be consistent with recent City experience. Projected claim costs of the health and dental plans are $980.70 per month. The salary increase rate was assumed to be 3.5°Io per year. The UAAL is being amortized as a level percentage of projected payroll expenses over 30 years. 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, 2009 the City purchased property, liability, and workers' compensation insurance under the program that provides fora $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $400,000 self-insured retention on workers' compensation losses. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. Settled claims have not exceeded this commercial coverage in any of the past sixteen fiscal years. 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 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, 2009 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, 2009 and 2008 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2007 - 2008 $ 1,237,000 $ 876,000 $ 813,000 $ 1,300,000 2008 - 2009 1,300,000 889,000 952,000 1,237,000 Also, the City is partially self-insured, through stop-loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop-loss coverage for claims in excess of $100,000 per employee with an aggregate stop-loss of $7,355,786. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund's claims liability amount for health care coverage for the years ended June 30, 2009 and 2008 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2007 - 2008 $ 589,000 $ 5,901,000 $ 5,802,000 $ 688,000 2008 - 2009 688,000 6,649,000 6,500,000 837,000 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 9. Contractual Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2009 are as follows: Fund Project Amount Bridge, street and traffic Paving and bridge construction, $ 2,054,138 control construction engineering design and consulting Other construction Public works construction, culture & recreation construction, and fire station construction 402,027 Water Water main construction 139,708 Parking Garage access controls and repair & maintenance 121,516 Sanitation Landfill consulting 416,608 Airport Runway extension consulting, grading and paving 3,211,097 $ 6,345,094 10. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City's experience that such actions are settled for amounts substantially less than claimed amounts. The City's management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 11. 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 acost-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 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Retirement System of Iowa, 7155 Lake Drive Suite 201, West Des Moines, Iowa 50266 or the report may be obtained from website www.mfprsi.org under the publications link. A member may retire at age 55 with 22 years of employment, and receive full benefits that are equal to 66°Io of the member's average final compensation. Additionally, members retiring with more than 22 years of service will receive an additional 2°Io of the member's average final compensation for up to 8 years of additional service. Other benefits are also calculated at varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rates are established by state statute. For the fiscal year ended June 30, 2009, members contributed 9.35°Io. 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 °Io 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°Io of earnable compensation. The City was required to contribute 18.75°Io of earnable compensation of each member in 2009, 25.48°Io of earnable compensation in 2008, and 27.75°Io of earnable compensation in 2007. The contributions paid by the City for the years ended June 30, 2007, 2008, and 2009, were $1,954,182, $1,910,454, and $1,434,031 respectively, and was equal to the required contributions for each year. Iowa Public Employees Retirement System The City contributes to the Iowa Public Employees Retirement System (IPERS), which is acost-sharing multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa 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 and 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 after four years of service or after attaining the age of 55. Full benefits are equal to 60°Io of the average of the highest three years of covered wages times years of service divided by 30. Plan members are required to contribute 4.10°Io of their annual covered salary and the City is required to contribute 6.35°Io of annual covered payroll. Contribution requirements are established by state statute. The City's contributions to IPERS for the years ended June 30, 2007, 2008, and 2009, were $1,384,110, $1,534,552, and $1,668,173 respectively, and were equal to the required contributions for each year. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 12. Municipal Utility Systems Water System The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, and Public Information/Education. There are a total of 32.75 (FTE) employees who work in the Water Division. This division serves 67,831 people and has over 22,000 customers. The average daily use for 2009 was 5.51 million gallons per day (MGD). A peak flow of 10.6 MGD was experienced during the summer of 1989. Water Sources: The primary source of water for the City is the alluvial collector wells along the Iowa River. Four collector wells can provide approximately 11.0 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; four Siluran aquifer wells which can provide 1.0 MGD; a sand pit that can provide 3.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 20 MGD maximum capacity. Water Treatment Processes: The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening (coagulation/flocculation/sedimentation), and granular activated charcoal filtration processes with fluoridation and free chlorination. The grade four water facility employs operators that perform over 200 water quality tests per day in-house and collect samples for testing at the University Hygienic Laboratory. This testing ensures that the water meets all of the Safe Drinking Water Act Standards. Distribution System: The water flows through approximately 288 miles of water mains and includes over 25,000 service connections. The distribution piping consists of cast iron, ductile and PVC main that ranges in size from 2" to 30". The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,100 hydrants located throughout the community. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City's bad debt write-offs have been less than 0.5°Io of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2008. Water Service Charge Minimums (includes up to the first 100 cubic feet (c.f.)) Meter Size Meter Size Inches Charge Inches Charge 5/8" $6.41 2" $22.14 3/4" 7.00 3" 40.91 1" 8.26 4" 71.37 1 1 /2" 16.47 6" 143.61 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Monthly Usage in excess of 100 cubic feet (c.f.) 101 - 3,000 $2.99 per 100 c.f. 3,001 and over $215 per 100 c.f. Single Purpose Meter Charges First 100 (c.f) Minimum Monthly Charge Usage in excess of 100 cubic feet (c.f.) $2.99 per 100 c.f. Changes in water rates over the last ten fiscal years. 2000 10% 2001 0% 2002 0°Io 2003 - 5 °Io 2004 - 5 °Io 2005 0°Io 2006 0°Io 2007 - 5 °Io 2008 0°Io 2009 0°Io 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2009, 2008, and 2007. WATER SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) 2009 2008 2007 Operating Revenues: Charges for services $ 8,107 $ 8,195 $ 8,240 Miscellaneous 86 134 51 Total operating revenues 8,193 8,329 8,291 Operating Expenses: Personal services 2,316 2,160 2,091 Commodities 768 1,348 1,463 Services and charges 2,642 1,840 1,802 5,726 5,348 5,356 Depreciation 2,124 2,065 2,024 Total operating expenses 7,850 7,413 7,380 Operating income 343 916 911 Nonoperating Revenues (Expenses): Loss on disposal of capital assets - (2) - Operating Grants 15 - - Interest income 625 931 929 Interest expense (1,351) (1,426) (1,549) Total nonoperating revenues (expenses) (711) (497) (620) Income before capital contributions and transfers (368) 419 291 Capital contributions 132 314 845 Transfers in 469 689 3,045 Transfers out (698) (820) (237) Change in net assets (465) 602 3,944 Net Assets, Beginning 60,606 60,004 56,060 Net Assets, Ending $ 60,141 $ 60,606 $ 60,004 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2008 and the budget for the fiscal year ended June 30, 2009 on a cash basis. WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2009 (amounts expressed in thousands) FY 10 Actual Budget Percentage Budget Charges for services $ 8,144 $ 8,425 96.66% $ 8,390 Interest income 561 1,025 54.73% 515 Miscellaneous 92 49 187.76% 1,799 Operating grants - 169 0.00% 1,749 Bond sales 16,952 17,251 98.27% - Total Receipts $ 25,749 $ 26,919 95.65% $ 12,453 Personal services $ 2,353 $ 2,371 99.24% $ 2,492 Commodities 652 768 84.90% 708 Services and charges 2,185 2,582 84.62% 2,574 Capital ouflay 994 4,318 23.02% 4,502 Transfer to capital project funds 477 1,101 43.32% 1,524 Operating subsidy 17 17 100.00% 20 Debt service payments 19,790 20,152 98.20% 2,833 Total Disbursements $ 26,468 $ 31,309 84.54% ~ 14,653 Sewer System The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 300 miles of sanitary sewers, 14 lift stations, and 2 treatment plants. There are a total of 25.60 (FTE) employees who work in the Wastewater Division. This division serves 67,831 people and has over 23,000 customers. The average daily treatment for 2009 was 12.34 million gallons per day (MGD). The North Plant was constructed in 1935 and the South Plant was completed in 1990 and upgraded in 2002. The connecting of the North and South Plants was completed in 1998. The City has the capability to divert treatment to the South Plant and control all operations remotely through computer systems. The combined wastewater treatment system has a maximum daily capacity of 41.00 MGD. Both plants are in compliance with federal clean water standards. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City's bad debt write-offs have been less than 0.5°Io of gross revenues for the past three years. 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Rates: The following rates and charges were effective July 1, 2008. Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $8.15 Monthly Usage in excess of 100 cubic feet (c.f.) $3.99 Changes in sewer rates over the last ten fiscal years. 2000 20°Io 2001 5% 2002 5 °Io 2003 0°Io 2004 0°Io 2005 0°Io 2006 0°Io 2007 8 °Io 2008 0°Io 2009 5 °Io 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Financial Information: The following table summarizes the results of operations for the Sewer System for the fiscal years ended June 30, 2009, 2008, and 2007. SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Commodities Services and charges Depreciation Total operating expenses Operating income Last Three Fiscal Years (amounts expressed in thousands) 2009 $ 12,557 84 12,641 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets Operating grants Interest income Interest expense Total nonoperating revenues (expenses) Income before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net Assets, Beginning Net Assets, Ending. 1,848 853 2,501 5,202 4,155 9,357 3,284 2008 $ 12,318 1,651 606 2,324 4,581 4,181 8,762 3,631 2007 $ 12,535. 53 12,588 1,497 554 2,185 4,236 4,209 8,445 4,143 131 (5) - 1 - 1 820 944 1,119 (2,578) (3,041) 3,213 (1,626) (2,102) (2,093) 1,658 1,529 2,050 266 577 1,539 148 30 928 296 (69) (97) 1,776 2,067 4,420 73,119 71,052. 66,632 $ 74,895 $ 73,119 $ 71,052 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2008 and the budget for the fiscal year ended June 30, 2009 on a cash basis. SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2009 (amounts expressed in thousands) FY 10 Actual Budget Percentage Budget Charges for services $ 12,611 $ 13,575 92.90% $ 13,413 Interest income 1,411 915 154.21% 672 Miscellaneous 84 - 0.00% - Operating grants - 1,063 0.00% 20,563 Local option sales tax - - 0.00% 3,900 Bond sales 33,590 34,365 97.74% - Total Receipts $ 47,696 $ 49,918 95.55% $ 38,548 Personal services $ 1,778 $ 1,802 98.67% $ 1,895 Commodities 564 473 ll9.24% 580 Services and charges 2,476 2,461 100.61% 2,578 Capital outlay 275 2,300 ll.96% 27,884 Transfer to capital project funds 125 500 25.00% 624 Operating subsidy 17 17 100.00% 20 Debt service payments 40,822 41,513 98.34% 6,883 Total Disbursements $ 46,057 $ 49,066 93.87% $ 40,464 13. Subsequent events On November 23, 2009, the City of Iowa City received and awarded capital loan notes for Parking Revenue Refunding Capital Loan Notes, Series 2009F in the amount of $9,110,000. The notes were issued to current refund on November 23, 2009, $9,275,000 of the City's outstanding Parking Revenue Bonds, Series 1999, dated December 1, 1999. 14. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued seven statements not yet implemented by the City. The statements, which might impact the City are as follows: Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not specifically excluded by its scope be classified as capital assets. Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, issued June 2008, will be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. ~5 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February 2009, will be effective for the fiscal year ending June 30, 2011. This Statement establishes new standards for fund balance classifications based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The City's management has not yet determined the effect these statements will have on the City's financial statements. 76 a'~ ~~ II ~. 77 ..' p ~# r.;~r CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET AND ACTUAL -ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS BUDGETARY BASIS REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2009 (dollar amounts expressed in thousands) Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Froperty Tax $ 43,137 $ - $ 43,137 Tax increment financing taxes 3,693 - 3,693 Other city taxes 1,597 - 1,597 Licenses and permits 1,272 8 1,280 Intergovernmental 21,353 10,696 32,049 Charges for services 4,758 34,830 39,588 Use of money and property 1,543 3,379 4,922 Miscellaneous 3,412 2,090 5,502 Total revenues 80,765 51,003 131,768 Expenditures/Expenses: Public safety 20,025 - 20,025 Public works 11,958 - 11,958 Culture and recreation 10,577 - 10,577 Community and economic development 13,893 - 13,893 General government 7,183 - 7,183 Debt service 35,740 - 35,740 Capital outlay 12,693 - 12,693 Business-type - 76,186 76,186 Total expenditures/expenses 112,069 76,186 188,255 Excess (deficiency) of revenues over (under) expenditures/expenses (31,304) (25,183) (56,487) Other financing sources and uses, net 32,647 49,801 82,448 Net change in fund balances 1,343 24,618 25,961 Balances, beginning of year 47,221 78,239 125,460 Balances, end of year 48,564 102,857 151,421 See Note to Required Supplementary Information. 78 Budgeted Amounts Final to Actual Variance - Positive Original Final (Negative) $ 43,168 $ 43,168 $ (31) 2,478 3,809 (116) 1,587 1,586 ll 1,308 1,308 (28) 22,537 63,944 (31,895) 40,342 39,926 (338) 5,504 5,150 (228) 5,698 6,722 (1,220) 122,622 165,613 (33,845) 18,116 26,277 6,252 12,577 13,467 1,509 11,332 11,603 1,026 5,051 31,023 17,130 8,183 8,264 1,081 12,662 36,660 920 12,863 28,611 15,918 60,429 118,228 42,042 141,213 274,133 85,878 (18,591) (108,520) 52,033 9,619 85,587 (3,139) (8,972) (22,933) 48,894 104,586 125,460 95,614 102,527 79 CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2009 (dollar amounts expressed in thousands) Governmental Fund Types Accrual Modified Accrual Budget Basis Adjustments Basis Revenues $ 80,765 $ (943) $ 79,822 Expenditures 112,069 (25,848) 86,221 Net (31,304) 24,905 (6,399) Other financing sources (uses) 32,647 (24,546) 8,101 Beginning Fund Balances $ 47,221 $ (6,800) $ 40,421 Ending Fund Balances $ 48,564 $ (6,441) $ 42,123 Enterprise Fund Types Accrual Accrual Budget Basis Adjustments Basis Revenues $ 51,003 $ (4,229) $ 46,774 Expenditures 76,186 (33,307) 42,879 Net (25,183) 29,078 3,895 Other financing sources (uses) 49,801 (46,414) 3,387 Beginning Fund Balances 78,239 $ 152,581 230,820 Ending Fund Balances $ 102,857 $ 135,245 $ 238,102 See Note to Required Supplementary Infarmation. 80 City of Iowa City, Iowa Note to Required Supplementary Information -Budgetary Reporting For the Year Ended June 30, 2009 In accordance with Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and agency funds. The budget basis of accounting is cash basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon nine major classes of expenditures known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay and business-type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $42,991,000 and expenditures by $175,911,000. The budget amendments were primarily due to changes in breadth and timing of capital improvement projects and repair and clean-up costs and related grants due to the flood in the summer of 2008. s~ City of Iowa City, Iowa Note to Required Supplementary Information -Schedule of Funding Progress for Health and Dental Plans For the Year Ended June 30, 2009 Actuarial Actuarial Actuarial Unfunded Valuation Value of Accrued AAL Funded Covered Date Assets Liability (AAL) (UAAL) Ratio Payroll July 1, 2008 $ - $15,235,196 $ $32,804,905 UAAL As a Percentage. of Covered Payroll 46.44% 82 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Other Shared Revenue and Grants Fund -accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. Economic Development Fund -accounts for revenue and expenditures of economic development activities. Johnson County Council of Governments Fund -accounts for the financial activities of the metropolitan/rural cooperative planning organization. CAPITAL PROJECTS FUNDS Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The fund in this category is as follows: Other Construction Fund -accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues and contributions. 83 CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2009 (amounts expressed in thousands) Special Revenue Capital Projects Bridge, Johnson Street, and County Traffic Economic CouncIl of Control Other Development Governments Construction Construction Total Assets Equity in pooled cash and investments $ 325 $ 49 $ 637 $ 213 $ 1,224 Receivables: Property tax 29 - - - 29 Accounts and unbIlled usage - - 155 5 160 Interest 24 - - 18 42 Due from other governments - 39 2,061 403 2,503 Restricted assets: Equity in pooled cash and investments - - - 14,634 14,634 Total assets $ 378 $ 88 $ 2,853 $ 15,273 $ 18,592 Liabilities and Fund Balances Liabiities: Accounts payable $ - $ 1 $ 13 $ 142 $ 156 Contracts payable - - 686 340 1,026 Accrued liabilities - 22 21 8 51 Due to other governments - - 1,963 - 1,963 Deferred revenue - - 2,053 412 2,465 Total liabilities - 23 4,736 902 5,661 Fund balances: Reserved for: Encumbrances - - - 1,528 1,528 Unreserved Undesignated 378 65 (1,883) 12,843 11,403 Total fund balances 378 65 (1,883) 14,371 12,931 Total liabIlities and fund balances $ 378 $ 88 $ 2,853 $ 15,273 $ 18,592 84 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Special Revenue Capital Projects Bridge, Johnson Street, and County Traffic Economic Council of Control Other Development Governments Construction Construction Total Revenues Froperty taxes $ 3,688 $ - $ - $ - $ 3,688 Intergovernmental - 272 2,107 194 2,573 Use of money and property 36 - 20 244 300 Miscellaneous 40 3 31 13 87 Total revenues 3,764 275 2,158 451 6,648 Expenditures Current: Public safety - - - 547 547 Public works - - 1,044 96 1,140 Culture and recreation - - - 205 205 Community and economic development 1,031 614 - 39 1,684 General government - - - 73 73 Capital outlay - 4 4,592 4,890 9,486 Total expenditures 1,031 618 5,636 5,850 13,135 Excess (deficiency) of revenues over (under) expenditures 2,733 (343) (3,478) (5,399) (6,487) Other Financing Sources (Uses) Issuance of bonds - - - 7,190 7,190 Sale of capital assets - - - 360 360 Fremium on issuance of bonds - - - 159 159 Transfers in - 338 3,862 279 4,479 Transfers out (2,727) - (672) (2,297) (5,696) Total other financing sources and (uses) (2,727) 338 3,190 5,691 6,492 Net change in fund balances 6 (5) (288) 292 5 Fund Balances, Beginning 372 70 (1,595) 14,079 12,926 Fund Balances, Ending $ 378 $ 65 $ (1,883) $ 14,371 $ 12,931 85 86 NONMAJOR ENTERPRISE FUNDS Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing services to the general public on a continuing basis are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The funds in this category are as follows: Airport Fund -accounts for the operation and maintenance of the airport facility. Stormwater Fund -accounts for the operation and maintenance of the stormwater operation. Cable Television Fund -accounts for the operation and maintenance of the Broadband Telecommunications Commission that oversees the franchise agreement with the cable television company, including production and broadcasting on the government television channels. s~ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2009 (amounts expressed in thousands) Cable Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments $ 80 $ 1,349 $ 1,154 $ 2,583 Receivables: Accounts and unbilled usage - 67 177 244 Interest 1 9 9 19 Due from other governments 624 - - 624 Total current assets 705 1,425 1,340 3,470 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 9 - 111 120 Capital assets: Land 7,324 2,156 - 9,480 Buildings 3,563 - 741 4,304 Improvements other than buildings 357 - - 357 Machinery and equipment 281 260 94 635 Infrastructure 7,122 34,024 - 41,146 Accumulated depreciation (3,706) (7,072) (276) (11,054) Construction in progress 3,243 340 - 3,583 Total noncurrent assets 18,193 29,708 670 48,571 Total assets 18,898 31,133 2,010 52,041 Liabilities Current liabilities Accounts payable 35 123 112 270 Contracts payable 591 - - 591 Accrued liabilities 3 14 44 61 Total current liabilities 629 137 156 922 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 9 - - 9 Advances from other funds 1,299 - - 1,299 Other Post Employment Benefits Obligation 1 2 10 13 Total noncurrent liabilities 1,309 2 10 1,321 Total liabilities 1,938 139 166 2,243 Net Assets Invested in capital assets, net of related debt 18,184 29,708 559 48,451 Unrestricted (1,224) 1,286 1,285 1,347 Total net assets $ 16,960 $ 30,994 $ 1,844 $ 49,798 88 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Operating Revenues: Charges for services Miscellaneous Total operating revenues Operating Expenses: Personal services Commodities Services and charges Depreciation Total operating expenses Operating income (lose) Nonoperating Revenues (Expenses): Operating grants Interest income Total nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net Assets, Beginning Net Assets, Ending Airport Stormwater $ 248 $ 622 $ 277 61 20 625 Cable 788 $ 1,658 155 479 695 202 27 249 415 709 32 1,156 694 1,223 628 2,545 (417) (598) 160 (855) 2 - - 2 2 30 27 59 (415) (568) 187 (796) 3,239 68 - 3,307 195 320 - 515 (37) - (160) (197) 2,982 (180) 27 2,829 13,978 31,174 1,817 46,969 $ 16,960 $ 30,994 $ 1,844 $ 49,798 89 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Cash Flows From Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows from operating activities Cash Flows From Noncapital Financing Activities Transfers from other funds Transfers to other funds Advances from other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Capital grants received Acquisition and construction of property and equipment Proceeds from sale of property Net cash flows from capital and related financing activities Cash Flows From Investing Activities Interest on investments Net increase (decrease) in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Accounts payable Accrued liabilities Deposits Other Post Employment Benefits Obligation Total adjustments Net cash flows from operating activities Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others Cable Airport Stormwater Television Total $ 280 $ 626 $ 795 $ 1,701 (262) (284) (113) (659) (67) (146) (479) (692) (49) 196 203 350 195 320 - 515 (37) - (160) (197) 94 - - 94 252 320 (160) 412 3,249 - - 3,249 (3,475) (428) (6) (3,909) - 6 - 6 (226) (422) (6) (654) 12 31 30 73 (ll) 125 67 181 100 1,224 1,198 2,522 $ 89 $ 1,349 $ 1,265 $ 2,703 $ (417) $ (598) $ 160 $ (855) 415 709 32 1,156 4 1 7 12 (44) 75 4 35 (7) 7 (10) (10) (1) - - (1) 1 2 10 13 368 794 43 1,205 $ (49) $ 196 $ 203 $ 350 $ - $ 68 $ - $ 68 90 INTERNAL SERVICE FUNDS Internal Service Funds account for goods and services provided by one department to other City departments on a cost-reimbursement basis. The funds in this category are: Equipment Maintenance Fund -accounts for the provision of maintenance for City vehicles and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund -accounts for the support services of photocopying, paper supplies, mail, overnight shipping, and two-way radios provided to other City departments. Loss Reserve Fund -accounts for the property, liability, Workers' Compensation and health insurance premiums and claims activity for City departments, including the self-insured retention portion. Information Technology Fund -accounts for the accumulation and allocation of costs associated with telecommunications and data processing, including the operation and replacement of equipment. 91 CITY OF IOWA CITY COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2009 (amounts expressed in thousands) Equipment Central Loss Information Technology Total Assets Current assets: Equity in pooled cash and investments $ 6,721 $ 608 $ 6,979 $ 2,697 $ 17,005 Receivables: Interest 47 4 57 20 128 Due from other governments 55 - - - 55 Inventories 332 - - - 332 Total current assets 7,155 612 7,036 2,717 17,520 Noncurrent assets: Capital assets: Land 45 - - - 45 Buildings 578 - - 253 831 Improvements other than buildings 50 - - - 50 Machinery and equipment 11,528 226 8 1,401 13,163 Infrastructure - - - 1,006 1,006 Accumulated depreciation (8,306) (134) (2) (1,442) (9,884) Construction in progress 199 - - - 199 Total noncurrent assets 4,094 92 6 1,218 5,410 Total assets 11,249 704 7,042 3,935 22,930 Liabilities Current liabilities: Accounts payable 175 21 34 31 261 Accrued liabilities 102 3 2,084 91 2,280 Total current liabilities 277 24 2,118 122 2,541 Noncurrent liabilities: Other Post Employment Benefits Obligation (17) 1 (17) 21 (12) Total liabilities 260 25 2,101 143 2,529 Net Assets Invested in capital assets, net of related debt 4,094 92 6 1,218 5,410 Unrestricted 6,895 587 4,935 2,574 14,991 Total net assets $ 10,989 $ 679 $ 4,941 $ 3,792 $ 20,401 92 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services $ 4,847 $ 344 $ 8,399 $ 1,882 $ 15,472 Miscellaneous - - 17 - 17 Total operating revenues 4,847 344 8,416 1,882 15,489 Operating Expenses: Personal services 831 41 152 986 2,010 Commodities 2,004 21 13 223 2,261 Services and charges 423 221 8,786 465 9,895 3,258 283 8,951 1,674 14,166 Depreciation 956 19 1 155 1,131 Total operating expenses 4,214 302 8,952 1,829 15,297 Operating income (loss) 633 42 (536) 53 192 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 45 (1) - - 44 Interest income 148 15 178 72 413 Total nonoperating revenues (expenses) 193 14 178 72 457 Income (loss) before capital contributions and transfers 826 56 (358) 125 649 Capital contributions 4 - - - 4 Transfers in 277 - - - 277 Transfers out - - - (59) (59) Change in net assets 1,107 56 (358) 66 871 Net Assets, Beginning 9,882 623 5,299 3,726 19,530 Net Assets, Ending $ 10,989 $ 679 $ 4,941 $ 3,792 $ 20,401 93 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Cash Flows From Operating Activities Receipts from customers and users Payments to suppliers Payments to employees Net cash flows from operating activities Cash Flows From Noncapital Financing Activities Transfers from other funds Operating transfers to other funds Net cash flows from noncapital financing activities Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment Proceeds from sale of property Net cash flows from capital and related financing activities Cash Flows From Investing Activities Interest on investments Net increase in cash and cash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Equivalents, Ending Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in: Receivables: Accounts and unbilled usage Due from other governments Inventories Accounts payable Accrued liabilities Other Post Employment Benefits Obligation Total adjustments Net cash flows from operating activities Noncash Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others Equipment Central Loss Information Maintenance Services Reserve Technology Total $ 4,964 $ 344 $ 8,416 $ 1,882 $ 15,606 (2,729) (227) (8,891) (861) (12,708) (831) (39) (80) (956) (1,906) 1,404 78 (555) 65 992 277 - - - 277 - - - (59) (59) 277 - - (59) 218 (951) (42) - (9) (1,002) 51 - - 4 55 (900) (42) - (5) (947) 149 16 188 75 428 930 52 (367) 76 691 5,791 556 7,346 2,621 16,314 $ 6,721 $ 608 $ 6,979 $ 2,697 $ 17,005 $ 633 $ 42 $ (536) $ 53 $ 192 956 19 1 155 1,131 3 - - - 3 114 - - - 114 (11) - - - (11) (291) 15 (92) (173) (541) 17 1 89 9 116 (17) 1 (17) 21 (12) 771 36 (19) 12 800 $ 1,404 $ 78 $ (555) $ 65 $ 992 94 AGENCY FUNDS The Agency Funds account for assets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. The funds in this category are: Project Green Fund -accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. Library Foundation -accounts for donations that are made to support the library development office. 95 CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended June 30, 2009 (amounts expressed in thousands) Balance Balance July 1, 2008 Increases Decreases June 30, 2009 Project Green Assets Equity in pooled cash and investments $ 212 $ 67 $ 49 $ 230 Interest receivable 2 2 2 2 Total assets $ 214 $ 69 $ 51 $ 232 Liabilities Due to agency $ 214 $ 69 $ 51 $ 232 Total liabilities $ 214 $ 69 $ 51 $ 232 Library Foundation Assets Equity in pooled cash and investments $ 4 $ 9 $ 9 $ 4 Accounts receivable 5 1 - 6 $ 9 $ 10 $ 9 $ 10 Liabilities Accrued liabilities $ 9 $ 10 $ 9 $ 10 Total liabilities $ 9 $ 10 $ 9 $ 10 Total Agency Funds Assets Equity in pooled cash and investments $ 216 $ 76 $ 58 $ 234 Accounts receivable 5 1 - 6 Interest receivable 2 2 2 2 Total assets $ 223 $ 79 $ 60 $ 242 Liabilities Accrued liabilities $ 9 $ 10 $ 9 $ 10 Due to agency 214 69 51 232 Total liabilities $ 223 $ 79 $ 60 $ 242 96 Statistical Section This part of the City of Iowa City's comprehensive annual financial report represents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 99 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 104 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 114 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 124 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 126 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. 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~ ~ A vVi N w ~ ~ ~ ~ ~ w b~q N ~ l~ c0 l~ N M O ~ ~ ~ ~ z ~ ~ ~ o ~ co O NM N ~~ ~ ~ ~ w ~ o ~ N ~ ~ ~ o z ~w ~' ~ W ~ ~ ~ ~ ~ ~ ~ ~ o o~ N co ~ ~ w ° ~ ~ ~ °~ ~ ~o M~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ M N ~ ~ ~ ~ W ~ ~ ~ ~ U ~ ~ z ~w o :~ ~' ~ N ~O ~O co o~ t~ O ~ ~ O~ ~--~ O O O ~ M ~ ~ ~ ~--~ ~ co O ~ co M ,--i ~ ~ M ,--i N ~--~ ~--~ N z w -~ ~ ~ -~ ~ ~ ~~~~ ~w~ o ~ y ~ > ~ ~ o w , ~ ~ ~ ~ ~ w ~ ~ o ~ ~ ~° ~ ~~~ ~ '~ ~ ~ o ~ ~ ~ ~ oyn °~ ~ o~ n y a ~ o ~ vs U ~ ~ ~c~ ~ ~ ~ ~ ~ ~ ~c~L1 ~ ~ ~ 102 N ~ .--i co in N N N in 01 l~ O co ~ ~O .--i 01 in ~ ' N O ~O ~O .--i N o ~ co ca o~ ~ o ca in o ~ m o -~ ~ o~ ca o~ m in in ~ co co 0 0 0 ~n c~ ~n ~ ~c m cc t~ ~ cc c m ~ m c c~ m c ~n ~n -~ ~ m -~ t~ ~ a1 00 ,~ of cal c~i in of co cal o co ~ co m ~ ~ ~ o m ~ ~ co o ~ ,~ ~ ,~ ,~ ,~ ,~ co m ~ .~ ,~ c N b4 b4 b4 b4 b4 b4 b4 b4 in o ~ co ~ ~ o in co m ~ ~ m ~ -~ 0 0 0 -~ ~ ~ m co cal cal o m ~ ~ ca o ~ co 0 0 o m o ca in ~ in ~ in -~ ~ ca ~ o~ ~ cc c~ t~ c~ c~ o~ c~ t~ .~ ~ ~ c~ m ~n cc cc ~n ~ m m t~ ~ O0 ~ ~ c~ cal m m co co c~i o ~ ~ ~ m .~ vi ~ of ~ in m .~ m C N b4 b4 b4 b4 b4 b4 b4 b4 in ~ in m co co m cal cal -~ in ~ o ~ o co in o o ~ ~ cal = ~ o 0 o in cal ~ in cal -~ in ~ ~ o~ o ~ o cal o ~ ~ in -~ co ~ o ~ ~ ~ m c~ m m ~ ~ cal o m ~ ~ m m ~ in co ~ o o ~ C N b4 b4 b4 b4 b4 b4 b4 b4 -~ o~ o ~ m ~ ~ o~ ~ c~ co 0 0~ co m o ~ in o~ ~ o~ ~ o o ~ o .~ ~ ~ cal o ~ in .~ in cal o~ .~ o~ in in .~ in ~ o cal cal ~ o~ ~ ~ N C N N N N -~ -~ oC M ~--i ~G V1 C ~ -~ N C N •--i ~G V1 ~ V1 ~ ~' ~ 01 ,--i ~ N N ~ m in O O ~ ~O ~O m in N 01 l~ ,--i ,--i l~ ,--~ U N ~ in ~ .~ ~ .~ ~ .~ co m in cal o~ ~ o~ m o~ o ~ .~ m ~ ~ o~ 0 0 ~ in ~ o in cal in o o~ co ~ co ~ ~ m o ~ cal o -~ ~ ~ m -~ m in oq ~c c~ ~n m m .~ c~ ~c ~c .~ m c~ m ~c o~ .~ cc c ~ c~ t~ c~ c~ ~c ~ •-• ~ ~ ,~ vi m ,~ ~ cal ~ of of ~ ~ of m m m o ~ in in co c~i cal ~ ~ (V ~ ~ O ~ W O Ef3 b4 b4 b4 b4 b4 b4 b4 O ~ :~ r ,.~~ ~~ co co o cal ~ ~ in ~ cal ~ o cal ~ in cal ~ in ~ ~ o~ ~ m ,~ in o ~ ~ m ~ in ~ o ~ ~ cal in o~ co co ~ m ~ ,~ m ~ co ~ m c~ co m A ;- in m o c~ o m in o~ m~ o ~ m o ~ ~ co m ~ ~ -~ a1 ~ ~ '~ °~ p in ,--~ c~i m ,--~ ~ ~ ~ of of m ~ vi m ~ ~ of c~i ~ ~ .~ ,~ ~ ~ ~ o m ,~ in ,~ ~ ,~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o p ~ ~ m ~ ~ co o~ in o~ in ~ cal m in ~ co o ~ ~ m in cal ~ ~ cal o ~ ~ ~ o~ ~ o~ ~n ~ -~ ~ ~O ~ co ~ co o~ ~ o~ o o~ ~ in o~ 0 0 o~ o~ ~ ~ o~ in m o ~ co ~ ~ o ~ o ~ ~ -~ in co cal ~ `~'~ c~i ~ c~i m m co co m vi ~ m o ~ ~ o ~ vi ~ ~ a1 o cn ~ ~ ~ c~ ~c -~ -~ c N b4 b4 b4 b4 b4 b4 b4 b4 N ¢, N > ~ ~ O ~ A ~ ~ ~ `~" ~ O N " > N N U ~ .. ° ~ A s 'O N N 0 0 N L 'O p ~' '~ N > :~ ~ ° ° ¢. o ou :~ a~ o o ~ op ¢. ~ .~ ~ ~ O O O L ~ O ~ '~, bA ~ '~ O r ;-• ~' w 'fy w 'd w ~' ~ ~ :3 O cC :a a U ~ ~ Q.U Q U ~ ~ a"+ a~ H H A ~ cG W O Q 103 CITY OF IOWA CITY, IOWA GENERAL GOVERNMENT TAX REVENUES BY SOURCE Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Property Tax Road Use Tax Hotel/Motel Tax Total 2000 24,271 4,928 554 29,753 2001 27,071 4,852 497 32,420 2002 28,623 5,077 646 34,346 2003 31,966 5,103 559 37,628 2004 34,958 5,311 580 40,849 2005 36,076 5,269 611 41,956 2006 38,336 5,303 674 44,313 2007 42,221 5,305 683 48,209 2008 44,101 5,432 734 50,267 2009 47,861 5,254 713 53,828 104 CITY OF IOWA CITY, IOWA ASSESSED AND TAXABLE VALUE OF PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Taxable Property Total Taxable Total Year Ended Assessed Value/ Exempt Assessed Direct June 30 Estimated Actual Valuer Property Valuez Value Tax Rate 2000 2,699,944 136,493 2,563,451 13.851 2001 2,920,580 137,713 2,782,867 14.757 2002 2,975,254 152,991 2,822,263 14.850 2003 3,214,973 155,407 3,059,566 16.813 2004 3,322,001 176,188 3,145,813 17.596 2005 3,834,435 181,186 3,653,249 17.314 2006 3,953,781 183,799 3,769,982 17.729 2007 4,280,834 212,203 4,068,631 17.302 2008 4,365,626 215,955 4,149,671 17.297 2009 4,424,355 217,904 4,206,451 17.717 Sources: iJohnson County Abstract Assessment City of Iowa City Assessor's Office -Annual Report Notes: Froperty is reassessed in the odd numbered years to make adjustments to all property values, according to current market values. As per the Code of Iowa, all real 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, commercial equipment assessed as real property, agriculture, residential on agriculture, 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. Froperty owned by governmental entities is not taxable and is not included in "Exempt Froperty". 105 ~ C 'py ~ N -~ m ~ ~ 000 ~ ~ ~o N ~ o ~n m ~n N oo ~ v, ~ ~ C +~ y CL c~ a>~ ~ N m m m N m ~n m ~ m ~ m o0 m 00 m 0 ~ 0 ~ F ~" ~" ~ A ~ p y ~ ~ H o O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O 0 O ~ ~ ~ ~ ~ ~ ~ ~ oD oD oD C ~ G> O O O O O O O O O O .~ ~ x O ~ ~ w 1 ~o m O O ~n ~n N N N y ~ ~ ~ N ~ ~ oo ~ ~ ~ y --~ --~ --~ N N N m m ~ ~ o ~ A ~ ~ N ~ N ~ ~ ~ m o0 ~ O O ~o O ~o o, --~ O O p .~ o~ o~ oo O -~ -~ m ~ oo ~ C ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ti ~ ~ l O m ~ ~ ~ N l m ~ ~n ~n ~n --~ o~ --~ N O --~ ~n y oo ~ o0 00 ~n m ~ m ~ o0 m ~ ~ ~ ~ o ,~" F +~ y O O ~ --~ O ~ o, o, ~ ~ L~ ~ ~ ~ ~ ~ ~ ~ ~ ° ° a> ~ ~ ~ ~ N N N ~ ~ m ~ m m m ~ o ~ ~ y ~ o a i ~ A -~ l ~n N ~O O O m -~ ~O ~n ~o O ~n N ~o 0o N m ~ ~n ~ o~ ~o O m ~n ~ o~ N G ~ ~ ~ ~ N m m m m m ~ y c~ ~, ~ ~. -. ~ O -~ N m ~ v~ ~o ~ o0 0~ ~ 0 0 0 0 0 0 0 0 0 0 w ~" N N N N N N N N N N v y 0 ~ z 106 CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Percent of Collection Total Tax Current Tax Levy Delinquent Tax Total Tax Year Levied Collections Collected Collections Collections 2000 $ 23,945 $ 23,989 100.2 $ 5 $ 23,994 2001 26,089 25,684 98.4 31 25,715 2002 27,920 28,423 101.8 5 28,428 2003 31,975 31,863 99.6 16 31,879 2004 34,073 34,009 99.8 23 34,032 2005 34,403 34,814 101.2 15 34,829 2006 36,460 36,654 100.5 44 36,698 2007 39,094 38,947 99.6 13 38,960 2008 39,973 39,768 99.5 70 39,838 2009 43,168 43,118 99.9 18 43,136 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: Collection of Delinquent Taxes not available by levy year. Fresented in year collected. Total as a Percent of Levy 100.2 % 98.6 101.8 99.7 99.9 101.2 100.7 99.7 99.7 99.9 107 m O N O ~o a, co ~ m m ~ m N m o m a, N ~ N Q ~ ' Q ~ ' Q ~ ' Q ~ ' o co o ~ y O ~ ~ o 0 0 0 0 0 0 0 Z Z Z Z ~ F ~ ~ O ~ ~ ~ a, O O x ~ ,-~ N M ~ v~ ~O l~ GO 01 ~ ~ ~.' O GO ~ O v') M ~ t/') 01 O lp M M N 01 ~ ~ V~ 01 GO lp ,-~ v') 01 O GO GO ~ v') ,--i ~ ~ ~ ~ ~ l~ M ~ c~C c~C v'i ~ O ~ ~ ~ ~ m N ~ a1 ~ O ~ ~ N O H H-J Ef3 O ~ ~ ~ Q ~ Q ~ Q ~ Q ~ ~ ~ ~ oN0 + ~' O ~ ~ O ~ O O~-~ O ~-~ O ~-~ O ~-~ O O O O ~ H ~ ~ O O `~` O O O ~ ,-~ ~ ~ ~ ~ ~ 01 ~ M ~ N v') GO ~ ~ O l~ l~ ~ ' 01 O ~ ' GO 01 ' ~O ~ ' ,-~ l M 01 ~ 01 ~ ~O ' GO ~ C/~ b0q .b ~ ~ p '~'"i ~ N v') ~ ~ l~ ,~ O ~O N ,~ M ,~ N N a1 m N ~ 01 ,~ ~ m ,~ v ~ ,-~ ,~ M p W Q O ~I ~ N c C O H O ~ ~ fA fA O ~ ~ ~ ~ ~ 'Z ~ ~ a O cC U N ~ -' ~ O ~ ~ Q ~ O ~ U z ~ ~ ~ ~ ~ E' O O uz ~ ~ U 7 `r O ~ ~ ~ ca ~ ICI U QI U ~ ~ U • ~ ~ U .. ~ ~ cC o ,~ v, ~ U ~ G' O a., ~, y ~ W ~ ~ ~ . U ~ ~ ~-+ r .+ G ~ O U ~ ~Nr G' F ~ ~ Q ~ ~ N U ~ S". ~ N '~ ~ N U ~ ~ U G' C..) O C..) ,4J O ~ U ~ ~ m U ~ + O m m Q U O cC ~ b0A . ~ ~y rr W ~ bA Q ~+ O ~ U ~ `+~ cC ~ N ~" bA Q ~ ~-' ~ ~" s' r , ~ O ~ G ~ U w "' O ~ .~ '~ cOC U b ~ "' O '~ N O ~ ' ~ G -~ W fx H ~ ~ U ~ ~ ,~ Q i1 L7 Q ~ O ~ O Q ~ ~ ~ O O N ..~ y U ~ ~ a U U ~ ~ ~ ~ U '~ Q ' O ~ ~ ~ ca ~ ~ U O N O ~ ~ O ~ ~ U ~ O U '~ U ° ~ U U ~ ~ bL'4 Q, ~ ~ ~"' U ,b a U ~ ~ w H w ~ ~ ~ ~ ° ~ ~ ~ a a w ~ °~ ~ ~ ~ ~ °' ~ o o ;~ ~ ~, ~ ~ Q ;~ o ~ ~ ~ ~ ~ ~ ~ L7 x ~ o :~ w ~ 3 ~ ~ °' ~ ~ ~ L7 ~ ~ o Z °'~ ~ U p. b ~ ~ o ~ Q Q ~ b F' ~ ~ ~ a ~ U vi vi x F" N -o , °; o U ~ ~ Q ~ ~ ~ ~ ~ 3 ~ ~ o ~ Y ~ Q ~ ~ ~ Z ~ a ~ a Q ~ ~° '~' '~' W H ~ U ~ N 108 109 ~ M N O ~O O~ ~ ~--~ c0 O M Q' Q' ~ M N N O~ CO CO l~ ~ ~ ~ ~ ~ ~ co ~~ o 0 0 0 0 0 o Z Z ~n U it a O bq N N z 'O N L". N U O O N ~ I N ~--~ N M ~ ~ ~O l~ CO O~ ~ ' ' ~ M ~ O N O ~ M ~ M ~ ' CO M co N M M N ~O O~ l~ ~O N O~ CO CO co CO co CO O O\ ~ ~'" ~ ~ ~ U N O~ O~ l~ ~O ~O ~ M M M ~O O~ ~ ,~ ~ ~ ~ ~ ~ ,--~ ~O M M Q' ~ O ~ CO Q' ~ ~ ~ c0 ,--i CO ~ ~ ~ ~ ~ CO ~ ~ ~ ~--~ N o o z o 0 0 o z o o M U i. a O 0 0 N x l ~ ~--~ N ~O ~ ' l~ c0 O~ ~ ~ M ~ a> ~ CO co M ,--~ N N ~ ' co ~O co M ~ ~--~ ~ ~ ' co ~ ~ O N ~--~ O ~--~ ~ l~ ~ ~--~ O~ O ~--~ O~ ~--~ N ~ M M U M ,--~ o ~ ,--i CO _ L". N U W .~ U ~ ~ ~~ ~N Lr r -+ L"i U ~ '~'' " ~~C 'O 0 ~ Lr ~ ~ ~ ~ '~ y ~ z '" ~ ~ ~ ~ ~ 0 ~ 0 ~, ~ ~ ~x .~ `~ o y 3 ~ .~ o .~ ~ .~ ~ ~ ~ y o ~ y ~ o ~ ~ ~ o ¢ Q ~ ~ ~ ~ ~ ~ ~ o~ ~ ¢ ~ 3 a > ~ ~ U a~' ~ ~ a~' vs ~ a F°-~ v°~ U L1 110 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2000 N/A N/A 2001 245,725,159 $8,837,339 2002 253,409,874 9,049,700 2003 257,788,030 9,308,824 2004 253,454,012 8,850,608 2005 254,560,239 8,315,719 2006 267,107,998 8, 844,993 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 Sources: Sources: City of Iowa City Revenue Department Notes: N/A Not available 111 ~ ~ ~O ~ M N O~ l~ l~ l~ ~ ~ O~ ~ ~, ~~ ~~ O O O O O O Z Z M L" ~--~ ~--~ M U it a W ~ o O U C~-~ W U ~ yd ~ yW~ a U U z x a O O N 0 0 0 N ~ I N ~--~ N M ~ ~ ~O l~ CO O~ ~ ~ ~ ~ ~ N N ~ ~ l~ N ~ O~ M CO ~ ~--~ c0 ~ ~ CO ' O c0 O~ CO l~ ~ ~ ~ M ~O l~ ~--~ l~ M c0 N OV ~O l~ O\ ~ M M M ~ N N ~--~ CO M N c l~ O~ U ~ ~ ° ~ ~ ~ ~ o ~ ~ N ~ ,~ ,~ ~ ri ~ ~ ~ a~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ o ~ ~ o r co o r ~ ~n co ~n ~ o ~n o~ o ~ o ~ o z o ~ o z ~ o L~' N M U a x l ~ ~--~ N ~O ~ l~ ~ ~ M O~ ~ ~ c0 ~ ~ l~ ~O ~ ~ ' N ~--~ ~ ' M ~O M O~ M l~ O~ M ~ O H O O O N ~O ~ ~--~ l~ ~--~ ~ O O~ O~ ~ l~ ~--~ ~O M ~+ ~--~ ~--~ M ~ U M N O~ ~--~ CO ~ O~ O ~O N CO ,~ co ,~ ,~ ,~ t~ o N M ~--~ ~ Fr S ~ y ~ ~E ~ ~~ S ~ ~, p z ~ o ~ ~ ~ °' ~ ~ ~ ~~ ~ y o ~ .~ o o V ~ ~ ~ '-' ~ ~ y ~ O p N ~ O r~ O ~, ;~ ~ ~ . ~ ~ ~ ~ ,•~~. ~ U C O C7 O ~ ~ '-a m 0. "O ~ ~" ~ O '~'' U 4' ;-~ N ~ C N oa N Q O N ~ ~ ~, ~ .~-i ~ O r ,'~i N '~ 0 ~ N '~ ~ ~ (~ ~ v ~ N ~ ¢, ~ ~ ;.a N .ti ~, ~' O ~ .~ ~ ~ ~ N Vl ~ U W f ~ O ~ ~ N C O ~ ~ ~ 0..i ~ ~i ~ ~ U ~ ~ v1 ~ R! H V1 U ~ 112 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2000 N/A N/A 2001 299,381,463 $11,111,313 2002 292,323,306 11,431,949 2003 297,0&4,229 12,015,122 2004 294,683,685 12,482,393 2005 297,714,953 12,557,646 2006 302,925,357 12,373,762 2007 315,199,203 11,084,369 2008 285,492,596 12,221,769 2009 276,455,246 12,499,949 Sources: Sources: City of Iowa City Revenue Department Notes: N/A Not available 113 ~--~ l~ M O~ ~--~ O~ O ~O M ~--~ ACC l~ l~ ~ ~ co ~ ~ co O~ ~ ~ ; "' ~--~ l~ ~O N N ~--~ O l~ ~O ~ QI ~ N N M M M M M N N N U ~ a~ ~ ~ ~~ N o~ ~ ~ ~n ~ ~ N ~ ~n ~ M ~ CO ~ N CO ~ N O~ ~ ~ O M ~ ~ ~ ~ ~ M M M N cJ ~ U ~ a H Cs~ o ~, O ~ a> O O O O O O O O O O O O O O O ~ O O O O O O O O O O O O O O , , ~ ~ ~ O O O ~ M co ,--~ ~ N O~ it i i ~ ~ CO ~ M ~O ~ ~--~ CO ~O O . a O ~ ,--~ l~ ,--~ N N O N O N O~ ,--~ O~ ,--~ co ,--~ co ,--~ l~ ,--~ ~} O O O O O O O O O O ' ~ O O O O O O O O O O 4 ~ ~ ~ ~ ~ O O O O ~ O ~ ~ M N ~ M l~ O~ O~ l~ M CO ~ w ~ ~ ~ O ~ ~q p~ ,~ ~ ~ O ~ ~ O ~ o O 0 ~ 0~ ~ co ~ ~ ~, ,~ ,~ ,~ H ~ ~ ~ ~ '-~ H ~ _ ~ ~ ~ O ~ ~O ~ ~O ~ M M CO O ~ N ~O ~ CO M O ~O ~ CO .! ~ • ~ '~~, ~' ~ I r-i ~ ~ CO ~ O co M O ~ ~ N co CO ~ N_ ~ O M ~ b~A O ~ 4 ~h ~ ~ ~O ~ ~ ~ O~ CO ~O ~ ~ ~ ~./ O ~} `~ O O O O ~ ~ O O O I az N N N N N ~ U d ~ ~ " ~ M N ~ O ~ ~ O ~ O i L, p, N ~ ~ ~ O ~ ~ M ~ ~ - ~yr O 'y ' ~ M M ~ ~--~ ~ M ~--~ ~ M ~--~ p ~ r a r~ i .i ~ M ~ l~ ~ CO ~ ,--~ ~ ~ ~ O ~--~ --~ O l~ --~ ~ ~ i i r b~A O M ~ M ~ O C CJ ~ ~ N ~O ~ N ~ ~ ~ ~ ~ ~ ~ co ~ O co N co O co i 0 i ~} ^ i i. U~ O ,~ O O O O O O O O O ~I O O O O O O O O O O C zc 114 H F Q F A ~, A E c ~ of ~ as ~ ~ oG I U ~U'~ '~ G ~ ~ G W F U ~ r O G ~ F O~ E~ F i "'~ ~ M y O ~ ~ l v'~ ^-~ l O ~ O 00 ^-~ O N M ^-~ o0 O O O Fq r„ ~ ~ A ^" ~ U z a o y ~ ~ 0 0 0 0 0 0 0 0 0 0 y z ~ ~ ~ N ~ o N ~; ~ ~ M o o A ,~ ,~ ~, ~ ~ ~ ~ N o N o N ~; ~, y ~ ~ ~ ~ ~+ ~ ~ N O N M l O\ ~ ^-~ v7 ~ O\ v~ ~ ~p O o0 ~ O\ 00 ~ O y ~ Q ~ N ~p ~ ~--i l ~ ~ 00 ~ M l V> l ~ l M l 00 ~ ~ ~ ~ ~ ~ ,~ "'~ ~ ~ ~ z ~ o ~ ~ ~ ~ ~r ~ ~ N ~ ~ ~ ~ ~ o0 ~ 0 ~ ~ o ~n ~ o~ N ~ ~ ~ ~ ~ ~ CC ~ ~ M N ~ 00 ~--~ ~ b V] n~Q ~ o ~' °' A w ~ ~ ~ ~ ~ ,b ~ ~+ ~r N ~ o0 00 ^-~ O ~ M O ~ v'~ N ~ 00 ~ ~ _M 01 --~ M a 'fi a ~ ~ ~ ~--~ ~ '--~ M '--~ ~--~ '--~ Ol 00 ~ V> ~ ~ . r ~ °' r. ~ A _~ ~ .~.i ~ ,~ ~ ~ p~ o a+ ~ ~ ~ ~ w O ~, ~ ~ o o, ~ ~n ~ v> o ~ N o o o ~n 00 o o 0, N 0 ~ o 0 ~ 00 0 o, 0 ~n o, 0~ o G .~ ~ ~ o`no oMO o`no o`no o`no o`no ~ ~ ~ ~ U' '~ ~ ~ ~ ~ ~ '~ a U ~ N ~ ~ 01 O 00 v> ~ v') N M l 01 ~ O O v'~ M ~ ^-~ 00 l ~ M 00 ~ N ~ v'~ v') M ~ o ~ ,b O ~ ~ ~ y ~ ~ 01 ~ ON 01 l 01 ~ N N M M o0 v~ 01 00 N ~ M N ~ ~ ~ ~ `~' ~ N ~ a ~ ~ ~ N N N M M M M ~ ~ ~ ~ ~ ~ ~} ~ ~ ~ U a'' ~ ~ ~-+ O b w C ~ O ~ N M ~ v> ~p l o0 01 O ~ O ~ • C ~ ~ O O O O O O O O O O ,~ s. ,~ .~ ~ ~+ N N N N N N N N N N ~ ~ ~ ~ z ~ o a 115 CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURESI Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Ended une 30 2000 2001 2002 20032 2004 2005 2006 2007 2008 2009 Notes: Principal $ 2,918 $ 3,541 3,599 Interest 1,360 $ 1,763 2,136 Total Debt Service 4,278 $ 5,304 5,735 Total General Governmental Expenditures and Transfers 52,727 53,898 53,462 Ratio of Debt Service to General Expenditures .08:1.00 .10:1.00 .11:1.00 4,742 3,683 8,425 82,001 .10:1.00 5,172 3,336 8,508 83,445 .10:1.00 9,349 3,676 13,025 88,342 .15:1.00 6,099 3,458 9,557 93,360 .10:1.00 6,700 3,464 10,164 93,639 .11:1.00 7,323 3,556 10,879 99,178 .11:1.00 8,418 3,364 11,782 102,607 .11:1.00 1 General Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. 116 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2009 Name of Governmental Unit City of Iowa City Iowa City Community School District Total Per capita assessed value (amounts expressed in thousands, except per capita) Total General Long-Term Bonded Debt Outstanding $ 84,995 % Applicable to the City of Iowa City 100.00% $ Amount Applicable to the City of Iowa City Per Capita 84,995 $ 1,253 26,690 59.85% 15,974 235 $ 111,685 $ 100,969 $ 1,489 $ 64,360 Source: Johnson County Auditor's Office Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Iowa City. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 117 z 0 ~ ~ . 3 ~ o . . b ~ U 3 O ~••~ w ~ ~ ~ ~ ~" ~ ~ w ~ y b ~, ~ ~ w w E-~ O W ~ o U A a C7 W F~ OI O N aol °o c~ of 0 cu SCI O N OI O N ~I 0 N of 0 N NI O N NI O O N OI O N N ~ III C O~ C l~ ~ ~ ~ ~ 00 N M N ~ I ~f3 O~ C O~ 00 O~ O~ V1 ~O O ~n O l~ ~ C ~ ~ ~ ~ ~ ~ ~ N ~ ~ 0 ~ ~ ~ ~ v' o~ o o c ~ i~ M ~G l~ W ~O O ~n ~n ~c ~n I C II ~n 00 00 C ~ ~ I ~f3 0 N ~ C C V1 V1 M ~ W ~ ~ ~~ 0 o ~ N ° c ° 0 ~ i 0 0 i 0 00 ~ ~ ~ ~ ~ c ~ O~ ~G M ~G O~ N l~ ~ ~ V1 W O~ ~ M ~ ~ ~ ~ ~ O~ 00 ~G V1 N M C ~ ~ ~ ~ ~ ~ 00 C ~ 00 ~ ~ W ~ ~ ~ ~ ~ ~ O~ ~ ~ M M ~" G .o .~ ~ ~ ~ ~ O ~ ~ O . ~ b ~ ~ ~ ~ b W . ~ -. ~ ,~ ¢+ ~ ap~a~~p ~ ¢' ~ ~ ~ ' y ~ Q E-~ i--1 ' E-~ CL b l~ M C M 00 ~G C ~G M ~ O~ ~ W C ~ C C ~ ~ ~ ~ N N N -y td ~ d fR fR td w ~. w ~ ~ o ~ 0 ~ ~ 7 Q ro 9 U 0 -o -°: ~ ~ t~ ~ o o ~ ~ ~~~~ A ~ o Ca ~ 7 w' ~ on o ~ a ~ ~ ~ O ~ Q ~ ~ ~ ~ N H Q 118 b d O z H V H w V ~ ,~~, on ~, C. ;~ p s. .~ ~ •~ ~ a ~ C"r '~ ,"f' LUi O bA C "~ C ^~ w C. 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O ~ 'G O z~ 119 CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Net Revenue Annnal Debt Service Ended Available for Ratio of June 30 Revenne Expenses Debt Service Principal Interest Total Coverage Parking Revenne 2000 $ 3,716 $ 1,861 $ 1,855 $ 455 $ 139 $ 594 3.12 2001 4,309 2,176 2,133 485 836 1,321 1.61 2002 4,272 1,960 2,312 510 746 1,256 1.84 2003 4,198 1,953 2,245 375 715 1,090 2.06 2004 4,164 2,319 1,845 395 687 1,082 1.71 2005 4,360 2,377 1,983 305 663 968 2.05 2006 4,161 2,380 1,781 320 645 965 1.85 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 Wastewater Treatment Revenne° 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 2002 12,501 3,389 9,112 3,005 4,236 7,241 1.26 2003 13,000 4,463 8,537 3,060 4,385 7,445 1.15 2004 12,947 4,523 8,424 3,280 3,672 6,952 1.21 2005 12,600 4,432 8,168 3,630 3,537 7,167 1.14 2006 12,798 4,260 8,538 3,815 3,390 7,205 1.19 2007 13,708 4,236 9,472 3,905 3,234 7,139 1.33 2008 13,332 4,581 8,751 4,105 3,071 7,176 1.22 2009" 13,462 5,202 8,260 4,260 2,813 7,073 1.17 Water Revenne 2000 $ 9,626 $ 3,384 $ 6,242 $ - $ 299 $ 299 20.88 2001 10,629 3,410 7,219 140 445 585 12.34 2002 10,179 3,428 6,751 705 1,175 1,880 3.59 2003 10,241 4,361 5,880 500 1,088 1,588 3.70 2004 10,627 4,360 6,267 925 1,427 2,352 2.66 2005 9,287 4,783 4,504 845 1,340 2,185 2.06 2006 9,918 5,722 4,196 880 1,305 2,185 1.92 2007 9,220 5,356 3,864 915 1,268 2,183 1.77 2008 9,258 5,348 3,910 955 1,229 2,184 1.79 2009 8,833 5,726 3,107 995 1,171 2,166 1.43 Notes: i Excludes depreciation and interest. ~ Includes principal and interest of revenue bonds only. s Puking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. a Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. s Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. ~ Refunded Revenue Bonds paid ire excluded from the principal of Annual Debt Service. 120 cC C C C C C C C C C C C C C C C C C C ~ y C C C C C C C C C C C C C C C C C C O O O O O O O O O O O O O O O O O O bA GT.' V1 V1 O O V1 O V1 O O V1 O O V1 V1 O V1 V1 O C ~.., ~ ~ ~ o N M o~ in t~ ~o o~ t~ M o~ o M p to M ca in M ~ ~ ca ~ ,~ ~ ~ N ~ ~ M v~ ~o ~o ~ ~ in ~ ~i ~o o~ N ~ ~i ~ ~ ~ N ~o ,~ ~ ~ C ~ q y, ~ 00 00 ~ ~ ~ in in ~ ~ M N N ,~ ,~ w c ~ ~ O ca ~ O~ O~ l~ C Vl C ~ ~ M c0 c0 ~ C ~ ~ ~ c0 c0 ~ M v~ o~ ~ ca ca t~ t~ v~ N ~ in M ~ ~ ca ~ ~ ~ ~o ~ ~ ~i ~o ~ ~ ~ ,~ ca ~i ~i ,~ o M co M ~ ~o M ~o ~o ~o ~o ~o ~o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o 0 0 0 0 0 0 0 0 0 0 0 0~~ co ~+ ~i ~ ~i ~i ~i ~i ~i ~i ~i ~i ~i ~i ~i ~i ~i ~. w ~ ~ ~ ca M M ca in ~ co o~ in 0 0 0 0 0 ~ o~ ~ ~ o~ o M o in ~o o ~0 0 0 in in in ~ N ~ ~ ~ ca M ~ ca ~ ~ ca ~ ~ ~ N o ca y ~ V1 ~~~~~ M M M N N N N N N N bA C. .'Li it C4 ~ ~ ~o ~ o~ ,~ ,~ o~ ~o o~ ,~ ~o ~o ,~ ~o N N N N M y ~i N ,~ ,~ vi M M ,~ m ~ ~ ~ m t~ ,~ M t~ ~ ~ ~ ,~ in o ~o ~ co 0 0~ o o~ o co ,~ ~o o~ o~ o~ ~ o in ~ ca ~ ~ ~ ca ~ ca ~ ca N ~ M ~ ~ ~ ~. ~ ~o ~o ~o ~o ~ ~ ~ ~ ~ ~ ~ ~ ~i ~. 3 ~ ~ o~ ca o~ N o~ in ca M ~ o t~ ~o o t~ M o~ M ca in ~ t~ t~ in ~o ,~ in o~ in ~o ~ ca ~o N o M M ca o ca in ~ o~~ M M~~ in M o~ N ~o o~ ~ M N o t~ o~ ~ M~~ ~ ca 0 0~ ,~ o t~ ca ca 0 0~ ,~ ca o ca ,~ in t~ t~ ~ w O\ ~ GO ~ ~ ~ GO ~ GO ~ GO N ~ M ~ 0 0~ o~ o~ o~ ~ ~ ~ ~ ~ ~ ~ ~ in ~ m m ,~ F `o o~ ca o~ N o~ in ca M ~ o t~ ~o o t~ M o~ M ca in ~ t~ t~ in ~o ,~ in o~ in ~o ~ ca ~o N o M M ca o ca in ~ o~~ M M~~ in .~ ca ~ N ,~ in ~o N M t~ in t~ ~ ~ ca o~ N ca ~ ~o N t~ M t~ ~ ~ N ca M ~o t~ ~o ca ~o o in M ~ v~ o~ ~ N ~ ~ in M o ca v~ N ~ ~ ~ M ,~ wj ~ M M M ~i ~i ~i ~i ~i ,~ ,~ ,~ C c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c _ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ m ~~ ~~ m~ 000 0 ~~ m~ N oho o~ N c "~~' M N N in t~ o N~ t~ o~ N in M o ca ca o ~o ~ t~ vi ~o ~o ~o vi vi vi vi vi ~o ~o ~o vi ri c~i ri C ~ ~. ~ ~ o ~ N M ~ in ~ ~ ca ~ o N M ~ in ~o ~~ ° c c c c c c c c c c c c c c c c c o w~ ° N N N N N N N N N N N N N N N N N F c c N T :~ b d 0 z_ 121 CITY OF IOWA CITY, IOWA Fiscal Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Fiscal Year 20091 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Outstanding Principal Interest Parking $ 370,000 390,000 410,000 430,000 455,000 480,000 505,000 535,000 565,000 600,000 630,000 670,000 710,000 750,000 795,000 845,000 895,000 $ 10,035,000 $ 584,298 561,973 538,473 513,798 487,801 460,335 431,401 400, 851 368,468 334,100 297,815 259,465 218,400 174,600 128,250 79,050 26,850 $ 5,865,928 Sewer Outstanding Principal Interest $ 4,260,000 4,205,000 4,720,000 4,945,000 5,095,000 3,260,000 3,395,000 3,550,000 3,690,000 3,860,000 4,015,000 4,220,000 3,895,000 2,485,000 1,220,000 700,000 740,000 775,000 $ 59,030,000 $ 2,812,609 2,307,469 2,031,945 1,856,145 1,670,193 1,513,934 1,388,615 1,251,959 1,103,155 944,683 776,608 587,173 388,688 232,288 141,250 93,250 57,250 19,375 $ 19,176,589 Total $ 954,298 951,973 948,473 943,798 942,801 940,335 936,401 935,851 933,468 934,100 927,815 929,465 928,400 924,600 923,250 924,050 921,850 $ 15,900,928 Total $ 7,072,609 6,512,469 6,751,945 6,801,145 6,765,193 4,773,934 4,783,615 4,801,959 4,793,155 4,804,683 4,791,608 4,807,173 4,283,688 2,717,288 1,361,250 793,250 797,250 794,375 $ 78,206,589 (continued) 122 CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Water Fiscal Year 20091 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Outstanding Principal Interest $ 995,000 680,000 1,110,000 1,200,000 1,245,000 1,295,000 1,345,000 1,395,000 1,450,000 1,515,000 1,575,000 1,645,000 1,715,000 1,790,000 1,870,000 1,325,000 1,390,000 835,000 $ 24,375,000 $ 1,171,392 1,054,596 901,971 861,409 817,855 771,806 722,795 670,768 615,530 556,281 493,487 427,519 357,303 281,468 200,160 128,847 68,481 18,788 $ 10,120,456 Notes: lAmounts for Principal excludes called revenue bonds. 123 Total $ 2,166,392 1,734,596 2,011,971 2,061,409 2,062,855 2,066,806 2,067,795 2,065,768 2,065,530 2,071,281 2,068,487 2,072,519 2,072,303 2,071,468 2,070,160 1,453,847 1,458,481 853,788 $ 34,495,456 ~--~ ~ N O N ~--~ ~ 00 Ol M W O M ~ oo ~ ~ ~ O ~ l a, a .r e ~ O '--~ ~ '--~ ~ M ~ ~ ~ O\ O ^~ ^~ ~ O\ ~ 00 N c d s. ~ ~ ~ CC ~ ~ v~ 00 ~ ~ ~ v~ l ~ O M ~ ~ ~ ~ y l l l l 00 00 O\ O\ O\ O\ ~" ~ O w ~ O ~ ~ O ~I O ~ N v'~ O O~ ~ O~ ^-~ M p ~}.i ~y ~^ Fil N N M M ~ N N N M ~ '~ M ~ Li ~ ~ ~"" .d ~ ,~ bq .a ~ ~ O ~ M M l O ~ v'~ ~p o0 ~ N ,~ ~--i ~ ~ '~ b v p v> ~ ~ ~ ~ ~ ~ 00 ~ 00 ~ dl ~ o0 01 O ~' N O V] it ' ~--~ ' ~--~ ' ~--~ ' ~--~ ' ~--~ ' ~--~ ' ~--~ N ,--i N ,--i M ,--i U N ~ W ~ ~ '~ cd U U ~ ~ ~ ~ O oo oo ~ N -~ M o, N ~ O ~ ~ ~ ~ oo 01 ~ ~ ~ w ~ ;~ y ~ ~ ~~ " 01 00 M 01 N O 00 O l N l N O ~ ~--~ ~ M l l 00 ~ L L ~d ~ ~ ~ ~ . N N M M M M M M M M ~ ~ U ~ ~ v ~ ~ a ~' ~ a , o -o U a ~ ~ ~ ~ o ~ ~d °o ~ °v~,° ~ c~v O oho ~ °o O °o O °o O °o O ~ ~ ' a .-i '" ~ G> ~ M V> --~ 01 ~ Ol l~ N O N ~ N ~ V> O Ol o0 M M b ~ N N ~ O ~ O ~ ~. , 0o M a, l O 01 ti v> ~ a, m v> l oo w ~ ~, P O ~ V Li M M ~ ~ ~ ~ ~ V> Vj V> N ~ ~~, +~ ~' .,~ G~ C~ ~I a ~ ~ U ~ U ~ O 0o ~ O N O N O 00 O 00 O 00 l 00 N ~ ~ M ~ M ~ ~ ~0,, ~ ~' L ~ ~ 'O~ ~--~ N N M M M 00 O 00 00 O p O ~ N ~ N ~ N ~ N ~ N ~ N ~ l ~ l ~ l ~ s~ N ~ ~ N ~" ~ O ~ O ~ ~ Q O U O cd" ~ o ~ " a U ~ o O ~ ~ ~ O N a N p b " cd G N °'~ i. "'~ O ~--i N M ~ v7 ~ l 00 ~ p ~ ~ ~ Q ~ ~ ~ l ~ ~ ~ O O O O O O O O O p ~ ~ ~ C l ~~ U w ^' ~ ~+ N N N N N N N N N N ~~~~ O ~ U v ~ o U ~ ~ ~ ~ ~ o a v o 0 0 v~.. WN M e 124 ~ ~ ~ ~ ~ ~ M M ,--~ ~ CO Q' ~ ~ M O O Z ~ Cr' U it a O "~rl CC "'~ N M ~ ~ ~ ~ CO ~ ~ ' N aj y co O N O ~ ~~ co O O ~ ~ O l~ l~ ~ M M ~--~ ~--~ O\ CO l~ M M O co N r-i r-i r-i r-i r-i r-i aV M O O~ ~~rr i-r W N N O x ~ N l N ~--~ N ~ ~ M l~ ~O ~ CO ~ O~ F+I N ~ ' O O N co O N O ~n ~ O ~ O O O ~ ~ ~O ,--~ O ~ ~O ,--~ O ,--~ CO N M CO O~ O O M ~O O~ ~--~ co ~ ~O .~ p ~ M ,~ ,~ ,~ ,~ ,~ ~j ~ ~ ~ .r N M W y O ~/ ~/ Fit b0 ~ ~ W "~ U U a ~ ~ w z w 3 a ~ a ` o ~ ~ y w V ~ ~ ~ ~ ,--, o ~ ~ ~ ~ U o U a U o ~ U ~ o , o ' ~ 0 ~ ~ • c 00 > G v~ y Q c N ~ y ~+ W ~ b q y ~ ~ _ ~ G~ • U U ~ vi ~' O .1 Q U ~ ~ ~ O O ~ ~ N ~ p ~ O U '~ U ~ O O Q C ~ •~ ~ U d ~ ~ ~ p W y' • ~ p ~ U ~ ~ ~' y •~ y O ~ O y ~ ~ U ~ ~ ~ C U O O O w_ ~ ^O ~ ~ • y y, U ~ ~ O ~ '~ U ~ O (> ~ D, ~ ~ 0..i w '~ ~' a; W a> w ~ ~ ' " ~ ~ ° ~ ~ > Z a U C7 h r U Z E 125 CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-Time Equivalent Employees as of June 30 2000 2001 2002 2003 2004 2005 Public Safety Police 96.25 96.25 97.25 97.25 97.25 94.25 Fire 52 52 58 58 58 56 Animal shelter 5.5 5.5 5.5 6 6 6 Inspection services 14.13 14.13 14.13 14.13 14.13 13.88 Public Works Public works admin 2 3 2 2 2 2 Engineering 10.6 11.6 13.6 13.6 13.6 11.6 Traffic engineering 4.15 4.15 4.15 5.65 5.65 5.65 Streets 23.5 23.5 23.5 22 22 22 Culture and Recreation Parks and rec admin 2 2 2 2 2 2 Recreation 14.67 15.17 15.17 15.17 15.17 15.17 Parks 13 13 13 13 13 12 Forestry 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 CBD maintenance 3 3 3 3 3 3 Library 40.25 40.25 41.25 41.25 43.25 42.63 Senior center 6 6 6 5.81 5.81 6.31 Community and Economic Developmen 8.55 8.55 9.05 8.35 9.45 8.45 General Government City council 7 7 7 7 7 7 City manager 3 3 3 3 3 3 City clerk 5 4.5 4.5 4 4 4 City attorney 6 6 6.6 6.6 6.6 6.6 Tort liabiltiy, insurance Personnel 4 4 4 4 4 4 Finance 27.71 27.36 28.61 28.61 28.61 26.61 Government buildings 4.08 4.97 4.96 4.96 4.96 4.96 Energy conservation 0.5 0.5 0.5 0.5 0.5 0.5 Human rights 2 2 2 2.5 2.5 2.5 Transit 48.25 48.25 48.5 48.5 48.5 50.5 Special Revenue Employee benefits 0.45 0.45 0.4 0.34 0.34 0.34 CIP /roads 7 6 7 7 7 3 Community development 4.75 4.75 4.75 5.45 5.35 4.35 JCCOG 6.1 6.1 6.1 6.1 6.1 6.1 Library development 1.5 1.5 1.5 1.5 1.5 0.8 Internal Service Funds Information technology 7.95 7.5 7.5 7.5 7.5 8 Equipment 9.5 9.5 10.25 11.25 11.26 11.25 Central services 2.1 2.25 0.75 0.75 0.75 0.75 Risk management 1.56 1.46 1.26 1.33 1.33 1.32 Business-Type Activities Parking 30.5 37 37 31.5 31.5 32.75 Wastewater treatment 25.3 25.3 26.3 26.3 27.3 27.3 Water 26.2 26.2 28.2 30.7 31.7 31.7 Sanitation 31.85 32.35 32.35 32.35 32.35 34.35 Airport 1.75 2 2 2 2 2 Cable television 5.25 5.25 5.25 6.19 6.19 6.19 Stormwater Housing authority 10.75 12.5 12.5 12.5 12.5 12.75 Total 581.65 591.79 606.38 605.64 610.65 599.56 Source: City's Financial Plans. 126 Full-Time Equivalent Employees as of June 30 2006 2007 2008 2009 94.25 96.25 96.25 103.25 57 57 57 57 6 6 6 6 14.88 14.88 15.38 15.55 2 2 2 2 11.6 11.6 11.35 11.35 4.15 4.15 4.15 4.15 23.5 23.5 23.5 25.5 2 2 2 2 15.17 15.42 15.42 15.42 13 13 13 13 3 3 3 3 3 3 3 3 3 3 3 3 42.63 42.89 43.14 43.14 6.31 6.31 6.31 6.31 8.45 8.45 8.95 9.05 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6.6 6 1 4 4 4 4 26.75 26.75 26.5 25.3 4.96 4.96 4.96 4.96 0.5 0.5 0.25 0.25 2.5 2.5 2.5 2.5 50.5 50.5 54.75 58.5 0.39 0.39 0.29 0.29 2 2 1 2 4.35 4.35 3.98 3.88 6.6 6.6 6.6 6.6 1 1 1 1 11.75 12 12.3 12.3 11.26 11.26 11.26 11.26 0.75 0.75 0.75 0.75 1.38 1.38 1.73 1.93 32.75 32.75 32.75 33.25 25.5 25.5 25.5 25.6 32.5 32 32.75 32.75 33.85 33.85 34.85 35.85 1.6 1.6 1.6 1.75 6.19 6.19 6.19 6.44 0.5 1 2 1.9 13.25 13.25 13.25 13.25 605.37 608.13 614.81 630.03 127 N ~' z ` o U ° F w 3 '`~' O ~'' r-i ~ ~ ~ ~ U O ~ ~ F Q w ~ O ~ ° ' ~^ A F" ~ j 0 H U a 0 ~D ~O ~O V'1 O O O .--~ l~ O 7 v1 7 N ~ O l~ O_ N~ ~O ~ V7 O O H ~ O M 00 ~ V l~ O V O O Q1 O O O .-~ O O M M ~--~ oo ~ r 00 O ~O 7 M ~O O O M oo O N ~ 0o O OI N V O N O O ,N ~ N ~ N M O ~ r ~ ~ ~ ~ 7 ~--~ l~ N M O O 01 - N O 7 0o M D, V V~ O ~n ~ Vl ~ ~ O O O N O ~ (~ ~--~ M oo ~ M ~ c+i oo N t~ ~D O O D\ ,-. 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C'1~'i'i~€]T, (-IiTR T'Tl~{,'41~C,T~'1i, RF.Pt)1€2'7T~V~x ANllr [lfW {'{~14~1['L~I:t\~'C .~ICYC~ ~[}T'[IT,R ~'1.1~"L'TT1~:~; Ti~'~~,r~T) err :i~r ~~i1T~TT CDJH~ 1E~LC~ C'L~L S~L'ti4'1'~141L?~'1' P~1~1~(lit~`ILLT I:Y rt~.C.[1MIi.l~:~N~;T'~ ~~~TiT +C~C?J':~:'.1~i°_~~.L'~`~`~[',~l~i:'~)~11~'4'[; ,~'ir:~l:'4'l~ 1~llS l'4+ Lfx~: Harr+tlrt~lal4: i~lwyur ~n~l '~•1:.`nlb:.`>_x cai arc C:it}~ ~['utincil 14`4; h,r~'~ tlu~iit4~4f ilia. 1m~lnci~l ~lrte;nlcnC~ ~3t~ tlle~ ~~;venlf~ia~n#tll 1GtrG'17fr~S, C~l~ ElLl5rJ7~~5-t~`C}~ 1C.~IG'iti~s, ~~~:}a Illi~j~r l~ua74j, ~1tr411ka4: t1~,1~"c~;t~l4: r4"lIlri!ZLL1Il~~ 1~u114~ illi4lnlltlti~ul ~1 thy: I'll}~ ~~1 lk}u~,r City. 1ca~h'~M, tts of ~llld tc~r tl7e year crlc3~iL.Iur1e "S~}, 2.f7C1~, which ccall4~;.~.i}~cly ~i?rrll~)r:~~: Chu [_::ily'~ k~s1Mi~ Citair~l`a.4:it11 til.i*,~l:lTll:lll~ ~1nii ll.trve issued caur r"eC7t~12 t17~ren11 d~t~ I~eee~tltaer° 1.1, ?~ir~9" ~~'e cra17t~11crecl c~w• t'1uClir ir7 t7ccnr~rl~rtcc; ~~~lha tl4aclitu`L~4 ~~~autilar4ls ~ellrrtll}° ae+~~~°pt~:ei ill t17e l~llite~i ~tate~ c~f~4n7eric7 and tl7~tand~r~,w a~aC7Cic~l7le tca ti Banc i~.l ~7,~a:1.i1~ cpn4li {r~•~l ia.a. ~r~~~e~r~~ar~st~r~,r~ir.cr~*a~z.~ .~'~~~arar~~rr°c~fS, i~succl L~~~ l<ic. C.a111g~Ir4~llcr +~ien4;r~~] t~t`tll~° t_~17ite~1 State.;. Trlterl72~i ~~.,~7ntr•nl :)e'er T'i13al7cir~l ReC~~arr.illl; 111 ~141nnisl,;_ r~rici 1~4.71`4an17ia1~F Utfl" t141Cl1t, }~'e 4:4~n~i41~.r4~4t the C:it.~~-s il7terrlaC c~or7~.1`471 ~~{'e' til7~7nci~l rclatarti r1~ a; a1 ba~iw liar 4~a~i~;rlirl; ~+ur ,.tf,c~i.ti11~ pl-c}~e~lul"~:~; err lllc: pral~~+}~c gal c.~l~rc~sili~ i]LI1' ia~31131i7r15 4~n t17~ tir7~rtci~zl ~I.a.t~:~rlcrlt;;, Cant I1C]T {fFr' rho ~71u'~ata~4= to I'cxt~rc;~~in~, :~~n ~Fl~in ittof Un ;lit 4 f4~4:~ y~4:a14-SS {x1 1114 C'ily's illtc.rlial e.4antrrxl cr~'er fJ[1c713i,1t1.11"~~3k?~Ptfrl~" ACCCICdrl7~?~~', ~~-e cln rlntextare4~ ala nCainitan nn ~1`le ~.I'C'~~cfi~°~ric~~ c,I'~.}x4~ C'i~~_''~ ulr~.an,:rl {;Cf11t1'i_i~ t}4~4.'1" 1V711t1ll4'Lir11l'laL7It111~a r~ ctarr~rral r:lcticicncy ~.xi~CS aa`II~.II 1.hw i:ll.~~i1~r7 sn- c:G~r~:rt~~ic}xl «1 ~1 c4~ulr+~~1 414}4~S n4sl ,Lliuu~ 177a118Gemel7# nr err?{7lcryees, i I7 t17e n~rnaai cnur~e t~#- ~31vr'tfrf'I17 int.; their ~a]~syi ~_r14~`l 1~ua14;1 i[)n~, 1,s:F 1,r[~t~Lr7L atr c14;~4x:t nli~3l~nelllcll~~ call a T1177~t1' 1}a~15" :"~ SL',~T17.1~1Cilllt +d~frCI~L1Cy rs a LLJr~TrC}1 detl~Ie174,~=, i^11 ~`{aI711}II~iYt.B{~1`I C}I LI~r11r{~I +~Ic:rli:ic:l`lcic~, I~lrt ~rciv~cl~° a11~4;4:ts lltc ~iiG~~'s t1L,ility tca ini~are, ttutllc7raz~, reet~rd, 17r"nees, gar re~7t~~rt tin7ni;sal r{;7t,~7 rt~li;~1~1±~' ul 11~4;4,4r41~a:1~:4: 4~,~i tll ~~~14•'I"rt~l}• ~ic~cc'~l:°~i ~ic:i;~s1a>lliuti priu~iplc~ ~ucll flltit ~Clcre. is ln~~r~ [15a1a a reninte 1 ik~el i11~"~~~~~11.}1,~1 al, rlli~4~3.~4;rr14;nt taC~ t:h~: [~'iry'~ Cirl~nac;i;~l ~~t7~1~"[11.4,`r.4~ ~Ir;1{ i} t114a1"i: tht11'1 ll14.Ull~a=4:'LIC~11L1'c91 u~il] n47t {ae pre~'entecl ter ~1=etect~ri day tl7e +C'it~.,-s i r7t.ernal LnntreFl. _+~ illtil#;Iltll 4'~~i;ill~e35 1S tl ~1_~111Y11;~]IYt 4~~frti.]~r1Cl`. 431" C[7r11171[l~tet?]1 {1t ,~It~ 171tJC~711t ~~eTI~CIEr1C IL'." lFlill I"I,'r.,Ull, 11'l I11UIC' lilrrll E1 Leln+.?ll' 111~C'17~Y474a{~ tll~ll ti 111;EltC~lt9~ 111LSStLtCdll~.lll [?t the trrl<1J7Cr.a~ St~ate177217°t:~ LT•'I.11 17011 fgti {lr'e•~~cr11~.4{ 4)1" ~~~:14:4:i4:41 ~~~~ 1h~ ~:'itv's i111c~7i~11L c~antrul. (.~rtr ci~n,iclerrtic~r7 crt' i nre~'rlal cnI111',~rl ny~4`r t it 1~a~7i:ia, l t4;1~,:F>-I i,1L~ 1h`i9S li~I 1.114:11711114:4[ 1?111~413~'. t1e~SC.]`rt?~Q [rl `.lae first ta~zra~r~7{7h tit tl7i~ seetrc~i7 ~7nr~ ~-s~uld r31?t ,14:ccss~~'ily iilcrlii I'~~ ,ill cl4:l'i4-.ic:rl4~i~~ 1.7.1 1lt~sur11 a;~lntrcrl tCatlt 177i~11t lae si~nitiicar7t detic~ierleies nr ]glateri~rl ~~'e~tkl7es,es" ~~~'e diti I1f~r i~3cr1I it=v i~ll~` ~14;I~~,~;:a}4~i4:~ ul ]1114~2]rJ.l ~.~tilltrc7J ~~~'er tl17aJ7ti r~71 C~~a{51~r1i~T ttl~lt l~'~ C~(arlrCt~l" t{l lae 173at~1'181 ~~r'e:l"~CIII`~~~fi..:7~ il~Fi174ex1 :71~c:Fw~e." I :rt:~ PLPI~, F'II~fF~LF~S. PI~ILCTIC" ~~ 9±~•~ "'.^~rns~:~ Yr~ni~7 n^,e , are. I. ~ 1 G"~°_~w:~r, Ir't ~ 7..':=7 ~?77'i A CF.:n¢ .;vs.v ti:5. ,r`~: iJ 1 c~ ~+~: ;5..?:;4.• ~ =~~?F t_'.s~uhI~li~r]cC r7nt~ (~C}7~r ~~iatters ~"~~ dart ~sf ~t~taining rea~nnaY~~e ~~ssurai3ce a~xnut ~~~hetl7er the C'ity'; tins ne~al ;ta#e~en#~ at-e free ot` nyater~al m i~,state~~yent, ~~~•e ~~rf;~r~ned tes#s of its c~}in~~lit3u~~e ~~•ith uerttin ~rr~~4risii~ns cat la~;~-s, regulati~n:~, cc~ntincts, raid grunt agre~ncnts, nc~nc~un~lituii;c }~~ilh r~~•hi.~:h c~~~,lcl htl~•~ ~~ ilu-c.ct grid ma~~rit~l e11i~c;l ran lh~: dc?[~;nninalic~n of tlLlclTlCla~ SLat(;lni:nl }Ylllt]Unf~. Hc.+~~`4~l•'G7. piuvi~lin~ atn ~~pinir~n can uc~ml~li~~ncc ~h~ilh thus:: ~ro>F~isir~ns }v~~~ nest ttn c~b~ec:ti~~e: cif o~u- aiaclit. tiu~l ~ic~.cu-~iui•~1;+. ~v~ clc~ h~hu~l cx~res~ ~t~~~ atn u~uric7u. '1'hc n;sulls a~f u~:- tk:~la cli~4_lc~~cxl ~xu iiustanc~3 ~~f 11+~I1~:Uan~a171irlCC i~r nl.trC~r iria~3}tCr~ 1ht~i. t~r~; r~~liririr+;l lu }.~c ~c,~rlC~l ~~Tti[1~,~ CTvk~E'r~.r~a~'TRl ,~~.r.~J~dirr; .S'trr ~ trlr..~ ~4~k'. ~,t~m~lients in~~~rl~-ing. staftlt~,ry' and +n#]~er lava} matters al~nut the C'9t~•'' ~ o~~er~#ions ter t]7e ~'~ar ended Jtuie 3(}, 3(}C1~), are l~ase~l e~cc,~l~a:~ively en 1cuc~+.~•ler~ge r~l~[ainec~ ii-~si~ psc~cedrires pesfc~nnacl c~ilring t;ur cltlt{hl cif the tina~icial s~alcmcnls c~1 thc: i'i~• c.7f lu~~•~~ ~'it}~, lc~v~~~t, {ind tirc rcpc7rl~~ Lu 1'~ii~l 1.1 ~f the tie.~:~rznl~tln}'>_ng Schcclt~lc c~£ ~''llIL~ll1,~S tilh~~ ~~414:s111)I1C:(~ {-,iF~~~, ~lI1C:L' +Jll1- i1llCll~ li'iiS f7e~S4:cl ~lll 1C:~iS 1917.{~ ~illlhlJ~~.:~, IAdl~ all 1xi9114i~C%ll4#Tl.ti tlts~l T[ll~all~ lias~.+~ thticl ~~7 i rr7p~~t ti~rn t}ie. ~.nrri Itier7t.~ ~~~ere rie~.es~~ii•il- t7u~titecl. The cnrr7ltier7t.s in~'erl~:'ir7g st~tutnry tzi3il r~t}ier le;~;il rr7~tters ~tre iic~t intended trr cnnsiittlte 1e~21 i literl~re#a~inn nt tllrrse .btatirtes- -f77is repk~rl, a ~+ublic: rr;c~u-ci by~ ltika~,~. is in~c~tl~~c~ sral~:1}~ l~rr ~lic; inf~rinu~i~+n t~c1443~. ~x1 the c~ff'ia;i~i13, c:inl~In;~res. '1 - - ~ ~ k - -,- and (;hl1LC."1'L~ {}i ilh4 [_'Ll;'` C}~ ]c,'k1~<i 4-;l l;', 1-i.8}~'}~, illlc~ Gfikl['1-13a1r11~~ Ic, ~~4~1lUIr~ tlMi.' t_'l~y" C}f 16F}y~i {-,l~k~, ~~71k'r~, Tfl.'t9;' 1"cl~{17"x., 1I14'14J[~llih I,;(l~r~rl ~~}';3i~{lir7~ A~?~.ii~1C:S 8ii~'1l)7y~+-I.IIi`CF!tk;li i:ii1i1.1C~. Tl7is rCt?Clr1 is I14~FI ICl1.E;11C1~i~lLt~ }1C~ I§fiil.~flCkulCl.Tit"]t ~5C 7i$i;Cl }l't' ?lli~~'t71i~ i3T.}1~E' tlllli L-}le~~ 5~}~C Itl~d ~r~artles. ~~'e a~cnil~i lik; ~~7 acl~.n~+~~.~l~;ci~~~ the in~ni~P ecs~~r~csit;~ an~J .~ssistt~ncc ~~xEc~nclc~~ ~~ 41s L }~ p~-~c~nn~:~l of ~i~c C'i~y° csp l~~~h~a C'il}~. 17a~vt~. c14G17ra ~ tli~~ 4's Fursc: c,7f c}ur ~~t~~lii, :il~c7u Id }v.+~i llt~~.~: ~txx~• cL~ac;~~ic?~~~ ~:~~r~~:cx~7.irl~~ ts.r~}~ w~,f th,c ~l~~}t~~: irrttll~~r~, ~_:~ :;i~;311 b~. ~ale~t.nil In ili,;c~us, i}7cli~ ti,k•i~.}7 ~~cn~ a~ ys~ur c.can~~er7icttic~.. ~,~, «~ Thi}~uque, f t~~~~a ~i•~ ~~=~, ~.i~~°. >~r.>~uT ~} cc~rrr~r>~r.r:~>~}cr, ~~'~rTrr r~r.c~~rrrtr~°~rlvT :~>f~~l,rr.:~r~r ~rs ~~i r..~~crr n~r:~a.rr~>r~ ~r~~c:rt_:~~'r ;~~ r, can ifv~-r>r~~2~L ~r~lv~i~r~c~r. ~~~°Lr~. ~C`17~~1 Pl.l.'~IV(`L lIV :~C:C.(71~1~!°~l~I~.E ~~°1'1'11014+113 C'll~C.I~L ~il~ ?~-133 Ti¢ t4~~ Trirtlr~r'ar~le ~~fa~-t~r ~r1r1'~,~renll~er~s ~~f l:}le C~it;~ +C'r~url~.il i-,it~° of Tei~~,~a ~:"izv- }o~~~a. ~I1~4 ~'L'e }ia~~e audited the c~nlf~lia~l~e at~ the ~: it~~ ct' lc~~~~a Cite, lc~~~°•a, ~~~ith the r4~pes of c,~;nlplitince recluirenlelits descriliel in rile }.!, 5. {)ifice ci#'l~1~~I1t1~~Incn~ Vinci ~la~~~G ([~l+~'i]3) C'i~~:ultir .'~-133 t`(,:r~~Ia~~r~rrce>~'rr~~ft~~r~f tht~t t4rii t~p~lic?tll_i1:; fti c:acil ~?,~ ils uitiic7r f~'ci~7-rtl 1xI-c7~-r~r11~ I:c}r, lkl~ r°•~;~r 4lul~°cl. Jung :~+;Mf 2O{)9- Tfl~ ~'i4~'"s Trrt~j~ar f~:cl~:r~~ ~r~~~TIe~I1I~ ~~-~ icl~rrtilicc3 irr rhti Innln;~[°~~ a~l't}7e inrl~}ier7clel7t auilierar' 1'esult3 s~~tic:~r7 ~I:f r~3e accr~lllfi~r7~'ir7~ ~.h~.c-lule i~iTirirlir7 ~s BJII~ C,}Lle~tJl~ll~d {.115TS. {.{lliif7~1~111Ge ~.Frt}l t~I~ r~~Lll~'erlltJ7t5 l?t Ia~[°'3, Ce~ll17t1C1J7.5, [;c?rytllct~, L~I7d ~,r:lrlt a~reenients af~filicalile t~ ~~7~;11 art: its mirjc~r fc;cieral ]}YD'YSrT-"rk1115 is tll.c r~s}~s~Ii3iL~ilat~' r~1~ Lkr~; C:ify's m.lrsa~esll~.n[- (>1ar r~.~p~rrsiL~ilit~' is [~+ c:?ilnc;ss tin ca~liui~rr +~u tii+,. ~C;iGy~'s ::r~xlrl?li~~llrW~ ~~1~cc3 c111 a~€rr 1~u~~i[, ll'c: r;t~llciu~.14'rl i~r[a° ~i[[ill4 C]I'~.s`tilTll?118110 IIl 1€Ci~fC}11iCe T~°Itll alld,9tl[1a,7, sL~IlC}~lt'd~ ~~li~rr~~}sxacc•ef?teij IJi tTieTTIiILeCl 51,~~tes t~f,~niericsr; the SLali~}c1JY}S afif~Irc~}7f2tf} ~rlltlrlCl~l 1L111t~~[?11ttI]rl~Cl 111 fit)r's:r'r~r;a~~:r~~:a~r;'ri,a~>.~i:s~sc~t~rr°c~.s, issued 1~~~ rl;e ~'~>rnptrc]]1~:~~r (ic~ncrcil ai fllc~ [_lnit~.~sl t,rfc;~;. arnci C>1~r11~ ~:ir~:ialar :'~-133" .•Lrfr~~ts i~f ~5'rrF~~.s, Lc~~°r~~ ~~~x°~;~r~~ri+€~~r~*~~° r~~i~~ ~b`c~ri-!'.~o~z~ C)~'~F~r~s ~~~r~.er.r~a.s, ' I `I lsT~,l: ~~1~17[l~+rti~ t~.ncl [_) l+t Fi { 'ir~:~.il~r ,'1 °'1,}.~ r~t11,iT~ 1}r;et 13~~ 1~IaTi sirlcl i)~:~rd+;tena ifdL ;iuelil Act c:rfil.9ir1 o'c~~snn~}ile a.~urar7~~ a}i~~lu 4["}i~r}l~l' 9lllrl~{?1i3f9}rz'IIiCe 33'It}l Mlle i~r~fi~es t~F. cisltil~iliaris:e r~quirertients referred trs alirr~•e t]i~t ~nu1d }ta;,~~ c1 C~1reCt ~711C} ]il~lT~rltll etYeet [)]i a ]il&J [5r fede]'~Rl f-rrn~ram nc~lirre~.:~Il audit inclLrci~,s e~anliniaig, cnl s~ I~~.yt 1~a1~is, c~~icicnc;~ ar~oL~t lhc: <_'it}°'s cuI11,~1itlnce }~~itll tllcis~.rccfLlu-c,rxlcuils rind prat+ut~liu~; ~U4`s.LC1f,f14r~,rCl4'~LIr1I-w:~ci8 SAr~; 1:~1ll41ti~L:ri:~4~ 1:11;L~~L~i.t~'11l t..f14:C:11-~'UI1ls~~LLC%C;~, ~~''i' bclie.vt: lhLit a.~1Jr 111,([11 ~r[~1~~i[3~= a ru<i~rr,;l~lc }~zi~is Is)r c:Ft~r njlirlic~ll. (~11i' :711r1it dries rra~1. ~arr~l,~i;'lr: ;i le~r~l clc.~.cj-rr~in;-,linr7 rn°I ~.f7e. {;ty''.s ~irnlfili~nc~e ~.~~itll t}lase recluiremallts. Tn nllr~if~ini~~u, t`ste C~it~~ cit lc~~h~a L:il~~, Tci P~'t1, cum~licci, ui r1~Ilrttfa7i~tlrc;~l~c;ct~, ~~~ifh tllcrc~cfuu-:nlcntsl~;lei~e>~i lei alb~i}'e; tlltit trl-c: aliplic:a~?1c t~~ rt~ch uI' il~ nr~jur 1`cc!c°rt~l 1?ra}~2-.yIII~ !'ur 4h4. y~~~.i.r °~~~c}r.:cl .f 41rIC $.F: ~~~CM~. I]ItC`:rr~1~l C:+:+7Ll~i~l I°.~~'al~i-:'{rlltf)IBrICC TT1e rtt~riagenierlt cat the C: it~~ of lr?~~°'a t'.it~r, L41~~'.l, 14 1-~~}~C?11S1f}l~~ t{Yr E~ f{r1~11S11inF dll Ll 111 i11C-r Cif ~rl ~Cl~ ~L~~~.~L r~°~~ interrl.tl ~cintrcif c?~~~r e~~mf?fialncc ~.~'gtl~ rr:~clLlirc:7lic~ts ~?l~ ltl~~,s" rc.~~4rlafi~sus, l:i}I11Ct9t`f,S, 1rnC~ ~1-11nt a~r~:emelits ~r}?~ific~t7L~lc: t~ 1'~:clc:rl>il l~rc~~~rlrns, lu 17{iuuiu~F 1tuc~ p~~I`c?riu.iu~~ ~~Irr {i~rciif, kk~c ~.°c}I1~icI~~I~:ci Lhc [=.'i1v' iulr,~ruxrl c~urllr-uI ' 4 ' u~'c'.rc:r~lllplialruc}~'a.[urr:<luirc.~lr1~~}t~t17.1~f ~:,:rl~14l ll;i~~c:3~ ~lir4:~l t~irtl Ill;~ta:rial cfl~:~t.~;ll1:i nl;~iwll~ I~~:~l~rt~l~rc?~rr~i~lrr ~3IC14;r l+1 s-IC:t~:rl I Ill I~ t:Fldr 191i[lilirtf~ l~ri~~:.efll rr~, f L~o-i' f.fl~. llllr'17i.9~~. (? I~ C.',~51ii'esstl7~; fF111' ,'M}?1111~31i rFn cirrr7jil itirrCc;, }rial. Trc~l. liir }}3~; ;~ur1~i~,a~ r:rf e~lil ~:~4 ir;;° ,117 t~rl'~ ill it~ll [~1; rife effecti~:~eriels rrf ill#ernal ri~ntrcal rr3~er c[~liifili~~r3~.e- ,~c~.nrilin;l~°', }vc r~ir rrr31 ~~fil•e~;~ an a-~liil;ir;n a~ri the ei~fi~ecti~-enes:; ~If tli~e C`i.~•'s iriterna~ cs~ntr~rl n~.~er cc~~l~f~liarice- 135 FEiPI_E. P~IC~JIPLE P~7I~ILITIE- J9uG ::=t1 'y~'f~7sc .+a:^...~re. Id'°d71 ?I=~..i~{u~, I.r, ~~CIG. ~i/' 1 =a~n - ;!~3°-:iiw 1~+"r': 1 fnx vw3.a„./U~'1 1 LC:•L :~ c4~nt1-ol daticiel7i.=y~ 111 tll~ ~.1#~~'~ lllt~Cilc1} ~~nntrcrl n~~er ~~r177~:liance ex fists ~-he17 7:1>Ie cles~n c-ar n~ert~lt.it~!!1 Crfi' c?~7nla-ul cio~:~ n~+l rtllt~~~` ]ll:lllci~Cll7~llt {}C ~r13}?~{14'~~"i, rll t~l~ f!{3~777r~~ C~IL1C.~~ {11~ l7~rf{~Crlll73~, i}ti~IP c~SSlcll~~ fillrlCt!{1rlR; l+~ prcvtul ur ciclr~ul nrrn-~.omplit7n~;e• ~~°3th t7 t}~'pe 471= ec7t77}~lidince recluir~rnent ~,f ar fedeeal prs~~,ran7 nn a ti71°le~;.~ I~t7~i~..'~ ,3i~~xli~c~Yr7.C clc~licicncy i~ a cunEr~71 {1~1ici~tc}~, ~~r {;c7lnbinalir~n of s;olztr{~1 pie#i{~ie77ce~, t17at acik'erel}+ aC~`~cls tk7c: C:il v's ;~Yti lily° 4c7 a~'fl~uni~lu~r ~s l:`c~~rttl la~rc7~~°tsnl suc:Jh Ll~trt Cll.: is lnc~r{; Lhttn a rvnx~7tc~ likelii7~~~tiri 11{}n- tOrrrltlif'7tlcexx~it}7 t~ f~~pe 4~fCC~ini)l~t~~;~ ~~.:(~Ulx'C111.1.`T1~ r~Jr~ f~cl:.~ttYlpru~zaxn [hrtli.~ 7~"ilur~ C17.ttn in~onsc{.}1ltsnli~ll swill r7c~t he }3r'er7ted nr detecte~~ }~y the {~it~,~'s rlt~rtr~a ci~niro1. rn~l#~rial ~,~'e~l.l.'ll~r~s 15 a slgliltletult defircrelyc~'p {~r ::Cllll~}IllzltlOl3 C1f'~I~r1lflCcllli detlclel3ul~~, that results ir7 mcrxv Cht7Ili r~ 1<41771i~t~: Lik~:lillc7t~ci Llxat ffiatel'Lal 11011-C.4}l7l}}}1c"!r1C~ 44'!t}l ~l t~'[,7~ t7t Ci~J77~3~Ic~rlC~ C~C~FYYC~r7l~IlT C7fi ~r {'k'~~C~3~ }~rc7r2-tixlu ~~°ill u{~l b~ prcvcult~d c7r d~:tc.cCc;ui ~l, C~1C ~'iCygs ui~eln~11 C~717tr[71. 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Scli~dulc: o f ~;x~c.~n~litures af~ 1'e~3era1 ,~ h~~tercls iL~clLad~~ t17e fi~dera l ~~r~iril ,~c~ir~°i~;:~ t~ftlle C;i~r crE'i~s+~zi :it~~. 1~~~~~tt, and i~ E>r~~s~.nl.~ci un ~~; accrual lass ref a~~~q~au~iuti, ~1~11€: ii~tnrm~tit~n ort ~fia~ 5uhedule is E~ra~er7lc.~:k in ~~cc.+rcitiiie~e ~~-ith tl-~~ raryuirc~r~~;~i1.~3 ul ~C~_1~113 (.ircul~r ~1, l :i }, }p~,~r~its r?f S'tc~; rr,~~, T.frr~c~2 l~vk~€~~~rc~r~xs, rx+era:,'t~~~~a-T'~-r!/rrC~r~~ca~~~,arar?;a~. 7'E3eretc~i, ~~~~r~~sainuu>iis}~re.~antec~ i~t ~hiw sc}.~cclul~;may~itt~r•frr~~r~ ~a.~tt~unl ~+resented in, ~r Li~u~ in 4h~: prcparitirrn {~f, the E~.7sic~ firitLU~:iul szat~m~n~s. ~f~1'1~ ?. ~L.13RT'G'TPT~1~~T'~- {)ftlie ted~ral exl~~.r7cli 1~.,~r~°s ~res~irte~l ii7 ti3e :~cl7~.r~ul~~, IfLS~ C:i4y haf 1ca~~~.~t ti' it;:•, TnS,+~~a. ~,z-~s;~ici~.~l i•ederal ~~~~.~,~~~~3~ lca ~tlbr~:cipi~.aat~; cL5 tc~lln~~•~~ ~'I'Ga~l"~Jtl '~ILI~ ~_:uaaLUt~a~l.ilyL]~.~~~[~~,o7~etit T#1~~~k [~;z~5iril~;; 11[~1'~~Ity lai~~e~tl77el~t Y<3tlir.;:r~~ii~~ 1'r~3~~-am rxl~v,~,rrE F;y.rra4: l+r1~~m~~ria] lust;c~ .~5~;is1<~rr,c: {il'~711C i~l's'1~~'ijr'fl ~4~cf~:r~i1 ,~rru~uru -Nr,~~~ic~t:.ci ~.~7')-~r'~. ~'I?1T1~t~:]- t~} ~L1~~11'C~L1131i:11.~*; ICI IT~t' t~~' 1~1~~' (`l'1'1', Y~(~~. ~~.~;lllJ.-fF F F7111TlTtiCT~ :~1 iUE~"11(~PJ1~11 C.#~`l' ]r'>~Al~ 1~l~XlFl ,T[]1+~T.:~Q, 211(19 Paa't T: ~uenni~r~~ of° #h~ lncice~cndenf r1ee~Xil~r'~ 12~~u1t~: 1'in~rnc:ixil t<i1:,~rXi:~t~ "1'ypc: c+F`a~a~ciitoi`'~ rel3nrt i~~ue€i T,71.vrnal cnrttr~o-l ~s~~er f~ntnt~iatl ra?pualui~: '~~iat~ria] ~~~~t~lcr-~es:~ icJc.°nti_Ca:.ci ~il~tlafils'.tlllE L~{;~Lt'14'IS~:~, N~,nct~mglif~xl.c>w nr7r~:ri~] t~ fiinancial stttteui~nt~ n~}rcci Tn#~rnni cnntrc~! t>'}~'~~ maj csi laru~Frl+rr.l; ~~{~#ertal }~'~~luic` ~ icl:;i,11 f Icil 5i~i.la~;~zai. ~l~li~icr7cy' I'~'t,c ~t'~uditnr's ra~r~~rt i~~ta~ci a~n a:;~>it~~lit~r~~:c. 1'txr rt~~.j{~e E~rti~,~,rai77s .rtCi~~ tl4lClll lrnclrnt~ cli~~~!(~iil ih,~r. ~7r~ s~e~uired to k3e rel~~r#4:~f iu ;awcx~r~lt~~a.c:~: kn~il.ft ('ir~.ul~r ,~-.I:i:i, des#i~~t~ ,51{?(a) Tcict~riFicari~an c~fi majc3r ]xrr_+~~ni~; ~:' l~ I?:~1 ~ 4rmk,~.z 1~4,21~ .` f'l. I C? fr 1~«llasr 1 f1rc~171~1c1 used to disti~sculsii }rc1v~~~~~~ T~.~l~~ ~ aii~~ `1'}~'~c 1~ ~r~s~tiw.~ ~u~i#~e yualilir:~cl a~ !c~}~~-risk ,7uililc~e !~ ncltaalilic;ci . o T~Ic~r7e rerknrted c, {r ~• 11{llaitl.ll~1.4:4~ ~~ s N:iTib~:;xf`~Fti~~lcr<~l Fr•4~~,t'nrty nr [:'lus#~r (-'rarrri~5iiirit.~~ T)evelt~pn3ent 131c~clc {~rttnl~.~` 1?Iltltlt=all~l7tS ~7rtillt~ dI{~'~~1~ 1n~'lm~.~1_r l'~~rrxx~~rlaip Pr',~~rai7~ r~u-~t~ri lin~~rux'~ulcrrl. Prn~r,3ir7 Hi~li}~~s~;~' Pl~~r7nit3r :rr7e1 C"c~ri~tizicti~~u ~'~.~ i~ CITE' {~F ICl''.~ X11-'~'', tC~1'~'~~ C'HLl~L{L~; C]1' 1+I1~1LrA[1C:S ~lA]T? ![:F~i'~'lO1VJl~'.l} ~'[]!i`I'S Part F~: ~thcr Tir~rlin~is ~Cel~~#ed #c~ Ltc uirc€1 #atuto~-~~ R~ 1t~rf,%.~ TT-~'~.~{}9 [='c;~-liliccl ]~ucl~~;t I}isl7urs~tt~el~t }~~fsr~; ~it~ l~lttrc:li ~~, ?Ufls~, ai7~el7eli~~~nt: cx~cc:~M~.ci dhc ~ri~itlal ~]Ilkp~,l,rl laucl~c~cxi ui the cc~nv77~uiiry3r7c1 esvs'~ris7n~a:; cl~~'c1~3pms.~t tu1~ del~,t r~~ice furlGlJ.~9r63, t'ht~p~e1~ ~~~~-~?ib s, f' 1},~; C:~}~Ic: c~~ lu~x'a ~l~te;- in ~ar2; "Pul~lic rl ittrtli:~ 111t91~~ n~~l ~e exl3ens~e~ [~r ~~r}cuxnl~4~c;<i exc~el~t ul7ci~r iln ,Inn ui~1 crr ccrrl~inuillg ~lpl~ro~riatinr7.``' l~cc~csn~tm~.n~trti~n -The huci~;et h~~u lci 11~it~c: bcc~1 t~lnenr~ea iiti ~lffici~nr:~ ~r7ou,rit in ~~t.ct~rciauce ~~.•ith C:Fri3p1~7 _Y ~~.1 ~ ~~F the C'r~rle nt Tt~~~~:~1 hc.f4srs.; tli~ bur~i;lnc:lit~ ~~~ere :111n~.ved €n exc~cc.l 111.; L~u~i~ct, I~e~}~ti~ar~e-Tits ~~il)` ~~'ill cc~ntului; ec~ nn~i~its~r ext~er7iliiur•~.w c},:I ~*~crltguin~ k~asis and ire thsv f~al.tlrc will tu11e17d t17e l~~u~t3e1, 11ri,:sr IL7 ~Ii~~L~4rrsc,nl~.nt~ exceecli n~ the }~uei~;~.l~l t~lrl+~4ui1~, C;s~~rcl.~rwi~n l~w?spirtlse ta~.cel~tecl- ii-13-U[~} ()ue.~tis7tlal~le rxltcn~lilrrTSv.~ - ~~~~c nc~~ed nr~ exl~~l7+~inlr'e dly,tt }x~~ bulievt. m:t~~ tai] to 171et1 t}ic: r~~cluircnletlt.; s~f ~~uhlie It~u'~~~~~~c :~s ciwClrlccl is1 till _~ttc~rne~~ ~ierler7l'~ iririni(~n ~It,lcli April?, I?9- I}-C`-i~9 T~°a}gel ~~'.~ r~:T„~: -- ,~ ~~pt_'ai~iitures nt C::it~ rr7c~l7c~w fi+t ir;i}~~'1 ~.~?~p~:n~c;s 4~t wli~~u;es r~f(:it~:' c?ff~.ittL~ sir ~.777~kIQ~'~eS ~~~er': r,i~~lmsl- TT-r) ~{~±~ Il~,~]~11:73 1r:t11~ciC`tl{:1~ ~, l~u~il~es~ 1 rari.;#~~lzi~llti bc~}w~c~.n [he ~ it;~~ ~rl7cl C`it~4~ ~~i"t iii l.; ~}r r:ln~?1~3~~ees ~.~ere rY4~lt:a~. 11-1v-U{~ L~s~n~ C'c,yerage - ~uret~~ k~s7iicl i:a:Fk~h°ra~c s_}1~ C'it~~ ~rtt7~i~~s ~17e1 e~~r~~IsFk~c;w~ i~ iu tt~:c~~rclance ~~~it}7 ~4:~lul[~r}~ ~+r~,~.'~i~ic,lly. T17e amnul7t a~f ca>~~~rt9'~c ~lloul~i b:; re~~~ie~~•ed ~nl7ui111y i~c~ i~rsuzx,° ills ~:tsh~cr~~l~e i ail.eyu~is~ Cc~r c4nYC:xlt r~p~.r:rti~rtls. ll-1'-l~f~ ~:~aun~il I~~lit7utes -1'klcl Ir~7i,~t~~;11C,11~ ~~~r;r~. 1c~iuld t17at ~.~~e l~elie~ie sl,eul.ii ll~ik~c: b~:en tr~'?13'~s~4-ed1 ir7 rhv C:cfunr:il n1i111ite~ l~llt ~{•ere r7c~t- fl-C;-f7 s} T:]e~]i,~il:~. ~?ncl .Irtk'~.,~ilrl~:~nl.~ N4~ ]R~tl13CeS ref ltr+lt=Giii11~111~LL~`~: ~4'1C~1 tEle d~~c~sit ~7r1[l iY1~~s„~11n~'Ill f?rc};.~isiran~ err (~'h;al)1:r~ ].1~ iiriC~ 1~C' c~f~the C:"~~~e s7t' Ft~k~~~~ ,iri~l llic f_',i14'`s ins°•e~ttne~n I~c~lic~,~ ~~,'~:rc uc~~c~~. T}-ill-C}~1 it~:a~~;tluc l~un4ls s~ 1u7sLclr7ces ;F1~ 17s~~r~,c~rn,pli<,tli::; ~k~i~11 llie ~irc}~~isir~l7s tit thsv {: iy,'~ rc~.~~~~lc~ 1~4~17c1 I°eSl~~ull~~ll~ +,1'k°IC:11ill.i:.({. ~~~ ~~`1 Eic~eBailly, ~~~. c,r:~~ ~. gusirlESS:~u~,ls~, To the Honrrral~le Mayer aid Pfiembers of the City C'.ouncil City uI'Iuv~a {-'it}~, ~o~'a ~~4~c hit}~c au.diled ~u ll.ntuuiial st~rtclncnts of the go~•enunental acti~•ities, tl~e l~usi ness-t~-pe acti~~itYes, ~~ch nlajcrt filryd, and the aggregate remaining fiend information of t}xe City of Iowa City, Iu~~~~, I'or the year ended June 3C1, ?00~, I'roCcssicrx-r~i stanciard~ require thEit we proviide yrni ~'itl~ infnrmatinrt alx~ut our zpon~ihiilitiics under gener~llly accepted auditing stanrln~rls, Guver~~ne~! A~da~in,~r ,S7r~nc~r~rds. itnd C1I~7J3 Circular r~-i 33, as well as certain infonn~-tion rely#eci to the plaiuied scrape and timing of raur audit, ~~e ha~Fe ~o-ttf>r~unic~l~cd stick intonna#ion irl our letter to }Feu dated l~Tay '1 f}09, Plcssioi~i standards also rc~c}~aire that a cnmrrnlnicate to you tka.~: fc~llouring in!`c~rmittica'n.rcl~t#cd to our audi#. it~ficant audit Findings ~rt~atat~ve~~a~ec~~~~ uf~~~cx~vunt~~~gl'~rr~~tic~~s Nl~uia'~c;m.c~t i~ r~.~pca'n~iblc foe #lus sele~;tiou and use rrf apprcr~~riate acco~t~t:itr~ pc~l.XCic~, Th:; si~ificant ac~ountirtig pn] icier used }~~' tl~~ C;it}' of To,x~~~ C.'i [y, Iov,`~, err[: d~scribcc~ in ~i~lc~re~ 1 #c~ the financial statelrlerlts. TVcr ner~' accounting policies ~~'ere aciop#ed, and the applicatirrn of existing policies ~.; r1C1t chrrYigcd during the year ended .iurye 3(1, ~{}f~~). ~~~ e y~nted no trarls~ic:tic.~ crrtcrcd i>~to by the City c~urii the year fnr ~~Fhicl~ there is ~ lack. cat authoriLitti~~c ~uicl:uicc ca'r cc~nscnisus. All sigoifican# tralvsactinns h~t~Fe beery recr?~tri~ccl in Mhc financial 5t~>:ar~yents in tl~e ~~rn~~er l~eriod_ Accnuntin~ estirrlates are arl irl[e~r~l parl of the flnainci~l statc~nents prepared by management arld are basal on manageincynt's laiorw~lcxlge and experience about past and clu~~~ent everyts arl[~ ~~sw~plit~ns about Future e~'ents_ Certaiyy accnunting estinnates ere pa~.'~rtcularly~ ~cr>.silivc bccau:c crt their significance to the tinanc~ial staterne>rxts rind because of the possibility that firture eeents affecting then inlay d1fi~er s~gni~caar~ly troln ilrc~sc; expected. lie inert se>~sXti~,'c estimates BrfiTeCtirl tkxe J:iztai~c:i~l ~ialcm.c.°n4s were; D'lKut~~c>tnc~zxC's esii~riatc ul' c~cprcciEtblc li}+e;s is based an past his#ory rrf life cycles of capital as~cls, ~G'c e~'aluated the ke}~' factor and assui~~ptinns uses} to de~Felup dcprcci:ablc lives in determining that t17ey are rc~tsunirblc in rcltr~ion to the l~u~ial statements taken as a v~Fhnle_ I~~anagemcnt's estimate of the incurred hlrt rant repnrfed health, v~'oz'i~c`lts' corapc.~sitti.oi~, liability, aid loth-te~xry disahilit.~F irxsurarxcc liit~.hilii~i:c.3 arc bascxl on third-party adn~inistratnr's calculeFia:rtls :ilk es#imates, 1~4'"e e~~alua#ed the key facxnrs and ascur~y~tions used to plc}clop the inctlrrc~d but rant reported liabili~i~.~ iti +~ct~~mining~ that they' are reonable in relation to t]7e tir~ancial staterne~~.1s lake ~s tt ~vhole. aixxgetnent°s estunate of the all~rr~-ar~c~e fnr dnuhtfiixl accouuzts is ba~ccl on irc:c;ounts ~~+hich are past due x~ritlY no special ~'~rr~n~rc~ic~t for pa~~mc,~n~, ~~'o e}+aluated the key factrrl~ ~lnd asstlr~~ptions r~scil to d:;vcloP tl~e allnwai~ce for dnuhtiiil accnurlts in dctezx~0.ixxi~ ili i~ is rcascuiablc in relation to t]~e t7nanci7l sta#ements taken as a whole. PEOPLE. PIIPLE. PIBILITIE. . ei d~k~p i I l.C~rrl 399q Pcnnay~vanio +1++~ , 5k:. ls;±? ~ DuFu~ur.: I~ .57.007777s 1 Phonr..5(~~ .5.5c~ 1 Job 1 Fnx Sfi3..557.7e347 ~ FC?F To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Fage 2 Management's estimate of other postemployment benefits liability is based on a calculation of actuarially determined contributions for health insurance benefits. We evaluated the key factors and assumptions used to develop other postemployment benefits liability in determining that it is reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No such misstatements were noted during the audit. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 14, 2009. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statezxaents, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, those discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Ta the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Page 3 Other Comments We have included az~ additional comment regarding future accounting pronouncements which will affect the City. This information, a public record by law, is intended solely for the use of the officials, employees, and citizens of the City of Iowa City, Iowa, and other parties to whom the City of Iowa City, Iowa, may report, including federal awarding agencies and pass-through entities and it is not intended to be and should not be used by anyone other than these specified parties. As always, we will be happy Yo discuss these or any other topics at your convenience. We would like to take this opportunity to express our appreciation to you and your staff for the fine cooperation that we received during the course of the audit. We look forward to many years of continued service to the City of Iowa City, Iowa. ~G~ Dubuque, Iowa Decenrzber 14, 2009 CITY OF IOWA CITY YEAR ENDED JUNE 30, 2009 OTHER COMMENTS Governmental Accounting Standards Board (GASS) The Governmental Accounting Standards Board {GASB) has issued three statements not yet implemented by the City of Iowa City. The statements, which might impact the City of Iowa City, are as follows: Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be effective for the fiscal year cnding rune 30, 2010. This Statement requires that all intangible assets not specifically excluded by its scope be classified as capital assets. Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, issued June 2008, will be effective far the fiscal year ending June 30, 2010. This Statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February 2009, will be effective for the fiscal year ending June 30, 2011. This Statez~ae:at establishes new standards for fund balance classifications based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.