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HomeMy WebLinkAboutFY2008 Annual Financial ReportCOMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2008 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2008 Page INTRODUCTORY SECTION 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……………………………………………………………………….... 74 Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 76 Note to required supplementary information – budgetary reporting…………………………….. 77 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet – nonmajor governmental funds............................................................ 80 Combining statement of revenues, expenditures, and changes in fund balances – nonmajor governmental funds...................................................................................................................... 81 Combining statement of net assets – nonmajor enterprise funds.................................................... 84 Combining statement of revenues, expenses, and changes in fund net assets – nonmajor enterprise funds............................................................................................................................ 85 Combining statement of cash flows – nonmajor enterprise funds.................................................. 86 Combining statement of net assets – internal service funds ........................................................... 88 Combining statement of revenues, expenses, and changes in fund net assets – internal service funds............................................................................................................................................. 89 Combining statement of cash flows – internal service funds.......................................................... 90 Combining statement of changes in assets and liabilities – agency funds...................................... 92 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2008 Page STATISTICAL SECTION (UNAUDITED) Net assets by component.................................................................................................................... 95 Changes in net assets.......................................................................................................................... 96 Fund balances – governmental funds................................................................................................. 98 Changes in fund balances – governmental funds............................................................................... 99 General government tax revenues by source...................................................................................... 100 Assessed and taxable value of property.............................................................................................. 101 Property tax rates – direct and overlapping governments .................................................................. 102 Property tax budgets and collections.................................................................................................. 103 Principal taxpayers............................................................................................................................. 104 Principal water system customers ...................................................................................................... 105 Sales history and total water charges.................................................................................................. 106 Principal sewer system customers...................................................................................................... 107 Sales history and total sewer charges................................................................................................. 108 Ratios of outstanding debt by type..................................................................................................... 109 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita............. 110 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures..................................................................................................................................... 111 Computation of direct and overlapping debt...................................................................................... 112 Legal debt margin information........................................................................................................... 113 General obligation debt annual maturity schedule............................................................................. 114 Schedule of revenue bond coverage................................................................................................... 115 Revenue debt annual maturity schedule............................................................................................. 116 Revenue debt annual maturity by funding source.............................................................................. 118 Demographic and economic statistics................................................................................................ 120 Principal employers............................................................................................................................ 121 Full-time equivalent city government employees by function........................................................... 122 Operating indicators by function........................................................................................................ 124 Capital assets by function................................................................................................................... 126 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 .. 129 Report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133................................................ 131 Schedule of expenditures of federal awards....................................................................................... 133 Notes to the schedule of expenditures of federal awards ................................................................... 136 Schedule of findings and questioned costs......................................................................................... 137 2 December 5, 2008 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2008 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. 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 . 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 3 conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. The City of Iowa City’s financial statements have been audited by Eide Bailly, LLP of Dubuque, Iowa, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the City’s financial statements for the fiscal year ended, June 30, 2008 are free of material misstatement. The independent audit involved 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, 2008, are fairly presented in conformity with GAAP. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves a four-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, 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 a two- year term. The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City’s operating departments and supervises the administration of the City’s personnel system. He supervises 544 full-time and 87 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 a three-year financial plan that includes both operations and capital improvements. This three-year plan permits a more comprehensive review of the City’s financial condition, allowing analysis of the current and future needs and requirements. During preparation of the plan, careful review is made of property tax levy rates, utility and user fee requirements, ending cash 4 balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. 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 28,200 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, Proctor & Gamble, and 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 improvements in the budget challenges faced by the State of Iowa, however, the City's economy as a whole continues to grow. The major employers have been able to maintain their workforce size. The unemployment rate for Johnson County continues to remain low at between 2.9% and 3.1%. The City has consistently experienced modest increases in assessed property valuations. New housing construction continues to be relatively strong with 133 new single-family houses and 151 multi-family dwelling units added to the tax rolls for the year ended December 31, 2007. This, along with the low unemployment rate, continues to be indicative of the City's economic well being. The 2000 census population of Iowa City was 62,220. After further review by the United States Census Bureau, the population was revised to 62,887 in 2006. This represents a 5.0% increase over the 1990 population of 59,738. In preparing the financial plan for the three years ending June 30, 2011, the process of budget balancing has again been most difficult. With the continued tax limitations imposed by the state (specifically the residential rollback factor) and other federal and state regulations and mandates, the municipal service needs for our growing community are becoming increasingly difficult to satisfy. In balancing the budget for the three-year period, the City attempted to maintain service levels, wherever practical. In addition, our planning has been directed at maintaining our current fiscal strength and avoiding any erosion of that fiscal position, including the City’s Aaa bond rating. 5 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, joint operation of 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. 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 have continued to thrive. Throughout the month of June, city staff and the citizens of Iowa City dealt with the Iowa River which flooded central parts of the city. The City of Iowa City was among several cities in Iowa that received a Presidential Disaster declaration. That disaster declaration brought the Federal Emergency Management Agency (FEMA) technical and financial assistance to Iowa City. As in many such disasters, parts of the community experienced financial hardships while it brought financial opportunities to others. In fiscal year 2009 we expect to rebuild and enhance the affected areas. Major Initiatives The City continues to be proactive in maintaining and building its streets, bridges, storm water mains, and trail systems and spent approximately $7,191,000 in fiscal year 2008 on various projects. The major projects were intersection improvements at Gilbert\Prentiss\Bowery streets, the extension and pavement of Lower West Branch Road and the continuation of the McCollister Boulevard extension project. The Iowa City Housing Authority provides rental assistance for 1,214 units, with an annual contribution contract with the Federal Government of $6,231,000. Community Development Block Grant and Home Investment Partnership funds totaling approximately $1,895,000 were utilized for economic development, housing, public services and facilities, and planning activities during fiscal year 2008. Community and Economic Development also leveraged approximately $4,234,000 in other funds. These programs provide for broad based financial impacts locally for builders, developers, and others. 6 Financial Information Single Audit: As a recipient of federal financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management. The results of the City's single audit for the fiscal year ended June 30, 2008 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. Retirement Plans: With the exception of police and fire employees, substantially all permanent City employees are covered by the Iowa Public Employees Retirement System (IPERS). The state annually sets the contribution rate for all municipal entities and covered employees. All covered employees are required to contribute 3.9% of their salary, while employers contribute 6.05%. There is no allocation or measurement of unfunded liability to any municipal entity and, upon the retirement of employees, IPERS has the sole responsibility for their benefits. The City has no responsibility to pay employee pension benefits of IPERS besides the required contribution. The City’s police and fire employees are covered by the Municipal Fire and Police Retirement System of Iowa (MFPRSI). This statewide system is a cost-sharing multiple-employer public employee retirement system. The state annually sets the contribution rate for all municipal entities and employees. The City has no responsibility to pay employee pension benefits of MFPRSI besides the required contribution. Cash Management: The majority of the City's investment activity is carried on by the City's investment pool, except for those funds which are required to maintain their investments separately. This pooled concept provides for greater investment earnings that are then allocated to the City’s funds on a systematic basis. The intention of the cash management system is to limit the amount of funds placed in accounts where low or no interest is paid. Idle cash is invested in various instruments with various maturity dates of less than one year, depending on the anticipated cash requirements during the period. The overall strategy of holding deposits and making investments is to expose the City to a minimum amount of credit risk and market risk. All bank balances of deposits as of the balance sheet date are entirely insured or collateralized with securities held by the State of Iowa Sinking Fund. For the year ended June 30, 2008, the City earned $7,211,000 from all investments, a decrease of $440,000 from the prior year. The following table shows how this was allocated by fund type for the fiscal years 2008 and 2007: 7 Risk Management: The City is exposed to a variety of accidental losses and has established a risk management strategy that attempts to minimize losses and the carrying cost of insurance. Risk control techniques have been established to reasonably ensure that the City’s employees are aware of their responsibilities regarding loss exposures related to their duties. In a similar manner, risk control techniques have been established to reduce possible losses to property owned by or under the control of the City. Furthermore, supervisory personnel are held responsible for monitoring risk control techniques on an operational basis. The City completed its eighteenth year under a property and liability insurance program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $400,000 self-insured retention on workers’ compensation losses. The insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of the losses paid. The operating funds pay annual premiums to the Loss Reserve Fund, which is accounted for as an internal service fund. The balance in the Loss Reserve Fund is available to cover the self-insured retention amounts and any uninsured losses. The total assets in the Loss Reserve Fund as of June 30, 2008 were $7,420,000. Independent Audit : Chapter 11 of the Code of Iowa requires an annual audit to be performed. The independent public accounting firm of Eide Bailly LLP was selected by the City. In addition to meeting the requirements set forth in Chapter 11, the audit was also designed to meet the requirements of the Single Audit Act of 1996 and related OMB Circular A-133. 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. The independent auditors’ reports related specifically to the single audit are included in the compliance section of this report. The financial statements are the responsibility of the City. The responsibility of the certified public accountants is to express an opinion on the City’s financial statements based on their audit. An audit is conducted in accordance with generally accepted auditing standards. Those standards require that the audit be planned and performed in a manner to obtain a reasonable assurance as to whether the financial statements are free of material misstatement. 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, 2007. 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 2008 2007 Investment Investment Fund Type Earnings Earnings (in thousands) (in thousands) Governmental 3,932 $ 4,045 $ Business-type 3,279 3,606 Totals 7,211 $ 7,651 $ 8 Ci t i z e n s o f I o w a C i t y Ci t y At t o r n e y Ci t y Ma n a g e r Ma y o r & Ci t y C o u n c i l El e c t e d Of f i c i a l s Ap p o i n t e d By Co u n c i l & M a y o r Ap p o i n t e d by C i t y Ma n a g e r Di r e c t o r / Ma n a g e r Em p l o y e d b y Bo a r d o r Co m m i s s i o n Ci t y Cl e r k Li b r a r y Bo a r d o f Tr u s t e e s Bo a r d s & Co m m i s s i o n s Ai r p o r t Co m m i s s i o n Ai r p o r t Ma n a g e r Li b r a r y Di r e c t o r As s i s t a n t Ci t y Ma n a g e r Fi r e Ch i e f Ho u s i n g & In s p e c t i o n Se r v i c e s Di r e c t o r Fi n a n c e Di r e c t o r Pa r k s & Re c r e a t i o n Di r e c t o r Pl a n n i n g & Co m m u n i t y De v e l o p m e n t Di r e c t o r Po l i c e Ch i e f Pu b l i c W o r k s Di r e c t o r Se n i o r C e n t e r Co o r d i n a t o r Pa r k i n g & Tr a n s i t D i r e c t o r Ke y Br o a d b a n d Te l e c o m m . Hu m a n R i g h t s Hu m a n Re s o u r c e s Ad m i n . Ac c o u n t i n g Pu r c h a s i n g Do c u m e n t Se r v i c e s In f o r m a t i o n Te c h n o l o g y Se r v i c e s Re v e n u e Ri s k Ma n a g e m e n t Ad m i n . / Tr a i n i n g Fi r e Pr e v e n t i o n Fi r e Su p p r e s s i o n Ad m i n . Bu i l d i n g In s p e c t i o n Ho u s i n g Au t h o r i t y Ho u s i n g In s p e c t i o n Pa r k i n g Tr a n s i t O p e r a t i o n s Pa r a - T r a n s i t Ad m i n i s t r a t i o n CB D M a i n t e n a n c e Ce m e t e r y Fo r e s t r y Go v e r n m e n t Bu i l d i n g s Pa r k s Re c r e a t i o n Ad m i n i s t r a t i o n Co m m u n i t y De v e l o p m e n t Ec o n o m i c De v e l o p m e n t JC C O G P r o g r a m s Ne i g h b o r h o o d Se r v i c e s Ur b a n P l a n n i n g Ad m i n i s t r a t i o n An i m a l S e r v i c e s Co m m u n i t y Se r v i c e s Cr i m i n a l In v e s t i g a t i o n s Em e r g e n c y Co m m . Pa t r o l Re c o r d s & In v e s t i g a t i o n s Ad m i n i s t r a t i o n En e r g y Co n s e r v a t i o n En g i n e e r i n g Eq u i p m e n t Ma i n t e n a n c e La n d f i l l So l i d W a s t e C o l l e c t i o n St o r m w a t e r Ma n a g e m e n t St r e e t s Tr a f f i c E n g i n e e r i n g Wa s t e w a t e r Ma n a g e m e n t Wa t e r Se n i o r C e n t e r 10 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2008 ELECTED OFFICIALS Term Expires Mayor Regenia Bailey January 1, 2012 Council Member and Mayor Pro tem Mike O’Donnell January 1, 2010 Council Member Connie Champion January 1, 2010 Council Member Amy Correia January 1, 2010 Council Member Matt Hayek January 1, 2012 Council Member Ross Wilburn January 1, 2012 Council Member Mike Wright January 1, 2012 APPOINTED OFFICIALS Date of Hire City Manager Michael A. Lombardo May 19, 2008 City Clerk Marian K. Karr May 21, 1979 City Attorney Eleanor Dilkes March 18, 1996 DEPARTMENT DIRECTORS Assistant City Manager Dale E. Helling August 16, 1975 Director of Housing and Inspection Services Douglas W. Boothroy September 22, 1975 Library Director Susan Craig July 28, 1975 Director of Planning & Community Development Jeff Davidson January 26, 1981 Director of Public Works Rick Fosse February 22, 1984 Director of Parking and Transit Joseph Fowler January 2, 1970 Senior Center Coordinator Linda Kopping March 20, 1995 Fire Chief Andrew Rocca July 14, 1978 Parks and Recreation Director Terry G. Trueblood February 18, 1986 Director of Finance Kevin O’Malley August 19, 1985 Chief of Police Sam Hargadine August 29, 2005 11 12 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, 2008. 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 – 9 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, 2008 by $367,313,000 (net assets). Of this amount, $74,199,000 (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 $16,956,000 during the fiscal year. Governmental activities increased by $9,442,000 and business-type activities increased by $7,514,000. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $40,421,000, an increase of $3,792,000 in comparison with the prior year. Of this total amount, approximately $28,177,000, or 70% 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 $14,488,000, or 33% of total General Fund expenditures. • The City’s total debt decreased by $4,165,000, during the current fiscal year. The key factor to this decrease was the retirement of bonds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net 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 four major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as “Other Governmental Funds”. Individual fund data on each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 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 84 – 86. 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 – 72 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 $367,313,000 at the close of the fiscal year ended June 30, 2008. 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 June 30, 2008 (amounts expressed in thousands) Governmental Business-type activities activities Total 2008 2007 2008 2007 2008 2007 Current and other assets 118,167 $ 107,390$ 95,730 $ 94,847 $ 213,897$ 202,237$ Capital assets 157,273 153,380 257,034 255,577 414,307 408,957 Total Assets 275,440 260,770 352,764 350,424 628,204 611,194 Long-term liabilities outstanding 84,442 82,616 110,027 115,332 194,469 197,948 Current and other liabilities 61,305 57,903 5,117 4,986 66,422 62,889 Total Liabilities 145,747 140,519 115,144 120,318 260,891 260,837 Net assets: Invested in capital assets, net of related debt 87,723 101,027 160,330 172,518 248,053 273,545 Restricted 23,741 8,181 21,320 23,893 45,061 32,074 Unrestricted 18,229 11,043 55,970 33,695 74,199 44,738 Total Net Assets 129,693 $ 120,251$ 237,620 $ 230,106 $ 367,313$ 350,357$ 17 A portion of the City’s net assets (12.2% or $45,061,000) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets (20.2% or $74,199,000) 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, 2008, 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 $9,442,000. The increase in net assets of governmental activities is primarily due to expenditures for capital assets less depreciation expense. The following is a more detailed review of FY08’s operation. City of Iowa City's Changes in Net Assets (amounts expressed in thousands) Governmental Business-type activities activities Total 2008 2007 2008 2007 2008 2007 Revenues: Program Revenues: Charges for services 6,379$ 6,598$ 34,876$ 34,397$ 41,255$ 40,995$ Operating grants and contributions 3,611 3,215 6,281 7,172 9,892 10,387 Capital grants and contributions 1,747 4,283 2,798 4,866 4,545 9,149 General Revenues: Property taxes 43,400 41,492 - - 43,400 41,492 Road use tax 5,432 5,305 - - 5,432 5,305 Other taxes 1,435 1,412 - - 1,435 1,412 Earnings on investments 3,932 4,045 3,279 3,606 7,211 7,651 Gain on disposal of capital assets - 281 1,260 591 1,260 872 Other 3,509 3,656 454 343 3,963 3,999 Total revenues 69,445 70,287 48,948 50,975 118,393 121,262 Expenses: Public safety 20,504 16,694 - - 20,504 16,694 Public works 13,727 13,560 - - 13,727 13,560 Culture and recreation 13,460 11,970 - - 13,460 11,970 Community and economic development 1,850 4,680 - - 1,850 4,680 General government 7,433 7,258 - - 7,433 7,258 Interest on long-term debt 3,517 3,459 - - 3,517 3,459 Wastewater Treatment - - 11,757 11,537 11,757 11,537 Water - - 8,804 8,823 8,804 8,823 Sanitation - - 6,868 6,684 6,868 6,684 Housing Authority - - 7,374 6,884 7,374 6,884 Parking - - 3,913 4,403 3,913 4,403 Airport - - 560 418 560 418 Stormwater - - 1,072 932 1,072 932 Cable Television - - 598 525 598 525 Total expenses 60,491 57,621 40,946 40,206 101,437 97,827 Change in net assets before transfers 8,954 12,666 8,002 10,769 16,956 23,435 Transfers 488 (5,321) (488) 5,321 - - Change in net assets 9,442 7,345 7,514 16,090 16,956 23,435 Net assets beginning of year 120,251 112,906 230,106 214,016 350,357 326,922 Net assets end of year 129,693 $ 120,251 $ 237,620 $ 230,106 $ 367,313 $ 350,357 $ 18 Business-type Activities: Business-type activities increased the City’s total assets by $7,514,000. The increases in net assets were primarily in the Wastewater, Sanitation and Airport funds. For all business-type activities, revenues exceeded expenses by $8,002,000. 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 FY2008 Revenue by Source Grants and Contributions 8% Charges for services 9% Misc. Other 11% Property taxes 62% Other Taxes 10% Business-Type Activities FY2008 Revenue by Source Charges for services 71% Misc. Other 10%Grants and Contributions 19% 20 Governmental Activities FY2008 Expenditures by Program Area (amounts expressed in thousands) Culture and Recreation Public Safety Interest Expense General Govt Community and Econ Dev Public Works 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 Program Area Do l l a r s ( $ ) Business-Type Activities FY2008 Expenditures by Program Area (amounts expressed in thousands) Airport Cable TV Water Parking Housing Authority Stormwater Wastewater Treatment Sanitation 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Program Area Do l l a r s ( $ ) 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, 2008, the City’s governmental funds reported combined ending fund balances of $40,421,000, an increase of $3,792,000 in comparison with the prior year. Of this total amount, $28,177,000 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 (30.3%) 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 ($1,518,000), 2) to fund various debt service payments ($8,691,000), and 3) to fund employee retirement commitments ($1,741,000). The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2008, the unreserved fund balance of the General Fund was $14,488,000, while General Fund’s total fund balance was $14,934,000. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 32.8% of total General Fund expenditures ($44,178,000), while total fund balance represents 33.8% of that same amount. The fund balance of the City’s General Fund decreased by $4,162,000 during the current fiscal year . This was primarily due to funding capital projects from fund balances. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($1,595,000) as compared to a deficit balance of ($2,799,000) 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 2009 to cover the capital expenditures. The Debt Service Fund had a fund balance of $8,691,000, an increase of $4,402,000 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 $230,820,000, a net asset increase of $7,166,000 . This was primarily due to an increase in capital assets without the issuance of additional debt and a decrease in liabilities. Of the enterprise funds’ net assets, $160,330,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $49,170,000, an increase of $21,927,000 compared to the previous year. The Internal Service funds showed net assets totaling $19,530,000 as of June 30, 2008, an increase of $1,560,000 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 two budget amendments during the fiscal year, which is our common practice. These amendments increased the expenditure budget by $32,676,000 to a total of $157,743,000. This represented a 26.1% increase. The major increase was due to capital projects in governmental and business-type funds due to timing of completion of projects. Capital Assets and Debt Administration Capital Assets: The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2008 amounts to $414,307,000 (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, 2008 increased by $3,893,000 for governmental activities compared to the prior year and increased by $1,457,000 for business- type activities over the prior year. The following table reflects the $414,307,000 investment in capital assets (net of accumulated depreciation). City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2008 2007 2008 2007 2008 2007 Land 15,481$ 14,130 $ 25,921$ 22,586 $ 41,402$ 36,716 $ Buildings 43,645 43,169 77,703 80,759 121,348 123,928 Improvements other than buildings 3,736 3,589 7,666 8,100 11,402 11,689 Machinery and equipment 12,420 10,556 10,304 11,367 22,724 21,923 Infrastructure 69,997 70,073 124,641 125,449 194,638 195,522 Construction in progress 11,994 11,863 10,799 7,316 22,793 19,179 Total 157,273$ 153,380 $ 257,034$ 255,577 $ 414,307$ 408,957 $ Major capital asset events during the current fiscal year included the following: • The parking department purchased land at a cost of $3,053,000 which will be used for a future parking structure that includes workforce housing. • Airport projects included runway design, grading, lighting, paving and runway extension. CIP at fiscal year end totaled $4,516,000. • A variety of street and bridge construction in new residential areas and replacement and expansion of existing infrastructure amounted to $7,191,000. This includes the continuation of the McCollister Boulevard extension project at $2,439,000, intersection improvements of $980,000 at Gilbert\Prentiss\Bowery streets and the extension and pavement of Lower West Branch Road at $1,948,000. • The demolition and reconstruction of fire station #2 at a cost of $1,336,000. 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 $182,435,000. Of this amount, $87,090,000 comprises debt backed by the full faith and credit of the City. However, 5.6% of this total, $4,913,000 is debt that serves enterprise funds and is abated by their charges for 23 services. The remaining $95,345,000 represents revenue bonds secured solely by specific revenue sources. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2008 2007 2008 2007 2008 2007 General obligation bonds 82,177$ 80,351$ 4,913 $ 5,489 $ 87,090 $ 85,840 $ Revenue bonds - - 95,345 100,760 95,345 100,760 Total 82,177$ 80,351$ 100,258 $ 106,249 $ 182,435 $ 186,600 $ During the current fiscal year the City’s total bonded debt decreased by $4,165,000. • The City issued $9,150,000 in General Obligation bonds during FY08. The bonds were used to finance the cost of the City’s 2008 Capital Improvements Programs. The City continues to have the 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, 2008 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 $197,689,049. With outstanding General Obligation Debt applicable to this limit of $87,090,000 we are utilizing 44.05% 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 Throughout the month of June, city staff and the citizens of Iowa City dealt with the Iowa River which flooded central parts of the city. The City of Iowa City was among several cities in Iowa that received a Presidential Disaster declaration. That disaster declaration brought the Federal Emergency Management Agency (FEMA) technical and financial assistance to Iowa City. As in many such disasters, parts of the community experienced financial hardships while it brought financial opportunities to others. In fiscal year 2009 we expect to rebuild and enhance the affected areas. The City’s expectation is continued constraints by the State property tax formula. Therefore, the City will not have opportunities for new initiatives and will strive to maintain current service delivery levels. Requests for Information This report is designed to provide a general overview of the City of Iowa City’s finances for all of those with an interest in the government’s finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to City of Iowa City, Finance Department, 410 E. Washington Street, Iowa City, IA, 52240. 24 25 Governmental Business-type Activities Activities Total Assets Equity in pooled cash and investments 48,552 $ 43,845 $ 92,397 $ Receivables: Property tax 43,839 - 43,839 Accounts and unbilled usage 144 3,881 4,025 Interest 554 1,361 1,915 Notes 13,532 1,562 15,094 Internal balances (8,501) 8,501 - Due from other governments 4,792 707 5,499 Prepaid insurance 9 - 9 Inventories 509 364 873 Restricted assets: Equity in pooled cash and investments 14,737 35,509 50,246 Capital assets: Land and construction in progress 27,475 36,720 64,195 Other capital assets (net of accumulated depreciation) 129,798 220,314 350,112 Total assets 275,440 352,764 628,204 Liabilities Accounts payable 4,528 1,037 5,565 Contracts payable 1,331 549 1,880 Accrued liabilities 3,764 336 4,100 Interest payable 273 2,412 2,685 Deposits 831 677 1,508 Due to other governments - 106 106 Unearned revenue 50,578 - 50,578 Noncurrent liabilities: Due within one year: Employee vested benefits 1,050 266 1,316 Bonds payable 8,349 6,121 14,470 Due in more than one year: Employee vested benefits 913 228 1,141 Notes Payable 211 - 211 Bonds payable 73,919 93,314 167,233 Landfill closure/post-closure liability - 10,098 10,098 Total liabilities 145,747 115,144 260,891 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS June 30, 2008 26 Governmental Business-type Activities Activities Total Net Assets Invested in capital assets, net of related debt 87,723 $ 160,330 $ 248,053 $ Restricted for or by: Employee benefits 1,741 - 1,741 Capital projects 11,118 - 11,118 Debt service 8,691 - 8,691 Streets 2,121 - 2,121 Other purposes 70 - 70 Bond ordinance - 18,138 18,138 State statute - 700 700 Future improvements - 222 222 Grant agreement - 2,260 2,260 Unrestricted 18,229 55,970 74,199 Total net assets 129,693 $ 237,620 $ 367,313 $ The notes to the financial statements are an integral part of this statement. CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) June 30, 2008 (amounts expressed in thousands) 27 Operating Capital Charges Grants and Grants and Functions/Programs: Expenses for Services Contributions Contributions Governmental activities: Public safety 20,504 $ 3,019 $ 241 $ 10 $ Public works 13,727 1,047 1,548 1,737 Culture and recreation 13,460 680 31 - Community and economic development 1,850 - 1,791 - General government 7,433 1,633 - - Interest on long-term debt 3,517 - - - Total governmental activities 60,491 6,379 3,611 1,747 Business-type activities: Wastewater Treatment 11,757 12,318 - 577 Water 8,804 8,195 - 314 Sanitation 6,868 7,853 - - Housing Authority 7,374 149 6,281 17 Parking 3,913 4,673 - 8 Airport 560 258 - 1,580 Stormwater 1,072 616 - 302 Cable television 598 814 - - Total business-type activities 40,946 34,876 6,281 2,798 Total 101,437 $ 41,255 $ 9,892 $ 4,545 $ 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. Program Revenues CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2008 (amounts expressed in thousands) 28 Governmental Business-type Activities Activities Total (17,234) $ - $ (17,234) $ (9,395) - (9,395) (12,749) - (12,749) (59) - (59) (5,800) - (5,800) (3,517) - (3,517) (48,754) - (48,754) - 1,138 1,138 - (295) (295) - 985 985 - (927) (927) - 768 768 - 1,278 1,278 - (154) (154) - 216 216 - 3,009 3,009 (48,754) 3,009 (45,745) 43,400 - 43,400 5,432 - 5,432 734 - 734 701 - 701 3,932 3,279 7,211 - 1,260 1,260 3,509 454 3,963 488 (488) - 58,196 4,505 62,701 9,442 7,514 16,956 120,251 230,106 350,357 129,693 $ 237,620 $ 367,313 $ Net (Expense) Revenue and Changes in Net Assets 29 Community Development Other Employee Block Debt Governmental General Benefits Grant Service Funds Total Assets Equity in pooled cash and investments 17,384 $ 1,593 $ 25 $ 7,638 $ 5,598 $ 32,238 $ Receivables: Property tax 23,818 8,989 - 10,998 34 43,839 Accounts and unbilled usage 125 - - - 16 141 Interest 205 17 - 143 46 411 Notes 113 - 10,936 1,934 549 13,532 Advances to other funds - - 18 228 - 246 Due from other governments 2,716 200 5 - 1,702 4,623 Inventories 188 - - - - 188 Restricted assets: Equity in pooled cash and investments 2,013 - - - 12,724 14,737 Total assets 46,562 $ 10,799 $ 10,984 $ 20,941 $ 20,669 $ 109,955 $ (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2008 Special Revenue 30 Community Development Other Employee Block Debt Governmental General Benefits Grant Service Funds Total Liabilities and Fund Balances Liabilities: Accounts payable 1,429 $ 1$ 14 $ -$ 2,282 $ 3,726 $ Contracts payable - - - - 1,331 1,331 Accrued liabilities 1,606 2 8 - 88 1,704 Advances from other funds 1,719 - - - 228 1,947 Deferred revenue 26,048 9,055 10,954 12,250 1,688 59,995 Liabilities payable from restricted assets: Deposits 826 - - - 5 831 Total liabilities 31,628 9,058 10,976 12,250 5,622 69,534 Fund balances: Reserved for: Inventories 188 - - - - 188 Encumbrances 152 - - - 1,366 1,518 Debt service - - - 8,691 - 8,691 Employee retirement commitments - 1,741 - - - 1,741 Perpetual care 106 - - - - 106 Unreserved Undesignated: General fund 14,488 - - - - 14,488 Special revenue funds - - 8 - 2,563 2,571 Capital projects funds - - - - 11,118 11,118 Total fund balances 14,934 1,741 8 8,691 15,047 40,421 Total liabilities and fund balances 46,562 $ 10,799 $ 10,984 $ 20,941 $ 20,669 $ 109,955 $ The notes to the financial statements are an integral part of this statement. Special Revenue CITY OF IOWA CITY, IOWA BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2008 (amounts expressed in thousands) 31 Total governmental fund balances 40,421 $ Amounts reported for governmental activities in the statement of net assets are different because: Internal service funds are used by management to charge the 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. 19,530 Prepaid insurance benefits future periods and is included in governmental activities in the statement of net assets. 9 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 9,417 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 151,727 Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. (1,859) Bonds payable are not due and payable in the current period and therefore are not reported in the funds. (82,268) Notes payable are not due and payable in the current period and therefore are not reported in the funds. (211) Accrued interest on bonds (273) Internal balance due to integration of internal service funds (6,800) Total net assets of governmental activities 129,693 $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2008 32 Community Development Other Employee Block Debt Governmental General Benefits Grant Service Funds Total Revenues Taxes 23,608 $ 8,876 $ -$ 9,268 $ 3,083 $ 44,835 $ Licenses and permits 1,270 - - - - 1,270 Intergovernmental 3,795 - 1,623 - 7,346 12,764 Charges for services 1,993 195 - - 40 2,228 Use of money and property 2,413 - - 240 553 3,206 Miscellaneous 3,346 - 260 100 271 3,977 Total revenues 36,425 9,071 1,883 9,608 11,293 68,280 Expenditures Current: Public safety 17,946 259 - - 500 18,705 Public works 6,357 - - - 5,751 12,108 Culture and recreation 10,395 - - - 308 10,703 Community and economic development 994 - 1,596 - 1,847 4,437 General government 6,737 412 - - 58 7,207 Debt service: Principal - - - 7,323 - 7,323 Interest - - - 3,556 - 3,556 Capital outlay 1,749 - 3 - 10,059 11,811 Total expenditures 44,178 671 1,599 10,879 18,523 75,850 Excess (deficiency) of revenues over (under) expenditures (7,753) 8,400 284 (1,271) (7,230) (7,570) Other Financing Sources (Uses) Issuance of debt - - - - 9,150 9,150 Sale of capital assets 111 - - - - 111 Premium on issuance of bonds - - - - 16 16 Transfers in 8,340 - - 5,673 11,400 25,413 Transfers out (4,860) (8,208) (245) - (10,015) (23,328) Total other financing sources and (uses) 3,591 (8,208) (245) 5,673 10,551 11,362 Net change in fund balances (4,162) 192 39 4,402 3,321 3,792 Fund Balances, Beginning 19,096 1,549 (31) 4,289 11,726 36,629 Fund Balances, Ending 14,934 $ 1,741 $ 8$ 8,691 $ 15,047 $ 40,421 $ (amounts expressed in thousands) Special Revenue CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2008 33 34 Net change in fund balances - total governmental funds 3,792 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while 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 10,463 $ Transfers of capital assets (to)\from enterprise funds - net (1,675) Capital assets contributed 444 Depreciation expense (5,511) 3,721 Bond proceeds are reported as other financing sources in governmental funds and thus 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 (9,150) Premium on bonds issued (16) Repayments of debt 7,323 Amortization of premium 16 (1,827) 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. 2,636 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in accrued compensated absences 10 Change in accrued interest on debt 23 In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital asset sold. (118) 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. (8) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 1,213 Change in net assets of governmental activities 9,442 $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) For the Year Ended June 30, 2008 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 35 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Assets Current assets: Equity in pooled cash and investments 3,589 $ 8,911 $ 12,807 $ 12,851 $ 3,282 $ 2,405 $ 43,845 $ 16,314 $ Receivables: Accounts and unbilled usage 128 1,310 847 1,336 4 256 3,881 3 Interest 54 779 226 218 49 35 1,361 143 Notes 170 - - 9 1,383 - 1,562 - Advances to other funds - - - 5,974 - - 5,974 - Due from other governments - - 1 42 32 632 707 169 Inventories - - 364 - - - 364 321 Total current assets 3,941 11,000 14,245 20,430 4,750 3,328 57,694 16,950 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 2,161 14,332 4,743 11,896 2,260 117 35,509 - Capital assets: Land 6,991 695 6,296 1,732 726 9,480 25,920 45 Buildings 25,036 59,509 23,461 999 5,455 4,304 118,764 831 Improvements other than buildings 166 7,365 2,331 121 9 421 10,413 50 Machinery and equipment 398 9,833 10,386 176 115 603 21,511 12,776 Infrastructure - 85,785 44,203 10,873 - 34,485 175,346 1,006 Accumulated depreciation (12,574) (54,497) (16,852) (8,410) (3,423) (9,964) (105,720) (9,282) Construction in progress - 795 2,936 673 230 6,166 10,800 120 Total noncurrent assets 22,178 123,817 77,504 18,060 5,372 45,612 292,543 5,546 Total assets 26,119 134,817 91,749 38,490 10,122 48,940 350,237 22,496 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2008 Business-type Activities - Enterprise Funds 36 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities: Accounts payable 38 101 $ 355 $ 225 $ 83 $ 235 $ 1,037 $ 802 $ Contracts payable - - 24 75 - 450 549 - Accrued liabilities 131 134 207 216 71 71 830 2,164 Advances from other funds - - - - - 1,205 1,205 - Due to other governments - - 22 74 10 - 106 - Interest payable 298 1,494 620 - - - 2,412 - Bonded debt payable (net of unamortized discounts) 366 4,206 1,549 - - - 6,121 - Total current liabilities 833 5,935 2,777 590 164 1,961 12,260 2,966 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 6 - 411 11 239 10 677 - Advances from other funds 3,050 - - - 18 - 3,068 - Bonded debt payable (net of unamortized discounts) 9,596 55,763 27,955 - - - 93,314 - Landfill closure/postclosure liability - - - 10,098 - - 10,098 - Total noncurrent liabilities 12,652 55,763 28,366 10,109 257 10 107,157 - Total liabilities 13,485 61,698 31,143 10,699 421 1,971 119,417 2,966 Net Assets Invested in capital assets, net of related debt 10,055 49,516 45,988 6,164 3,112 45,495 160,330 5,546 Restricted by bond ordinance 1,635 12,838 3,665 - - - 18,138 - Restricted by state statute - - - 700 - - 700 - Restricted for future improvements 222 - - - - - 222 - Restricted by grant agreement - - - - 2,260 - 2,260 - Unrestricted 722 10,765 10,953 20,927 4,329 1,474 49,170 13,984 Total net assets 12,634 $ 73,119 $ 60,606 $ 27,791 $ 9,701 $ 46,969 $ 230,820 19,530 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 6,800 Net assets of business-type activities 237,620 $ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) PROPRIETARY FUNDS June 30, 2008 (amounts expressed in thousands) 37 38 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Operating Revenues: Charges for services 4,673 $ 12,318 $ 8,195 $ 7,853 $ 149 $ 1,688 $ 34,876 $ 15,443 $ Miscellaneous 84 75 134 79 67 15 454 - Total operating revenues 4,757 12,393 8,329 7,932 216 1,703 35,330 15,443 Operating Expenses: Personal services 1,691 1,651 2,160 2,212 871 702 9,287 1,961 Commodities 63 606 1,348 305 14 115 2,451 2,943 Services and charges 700 2,324 1,840 3,889 6,324 537 15,614 8,744 2,454 4,581 5,348 6,406 7,209 1,354 27,352 13,648 Depreciation 880 4,181 2,065 596 180 889 8,791 1,188 Total operating expenses 3,334 8,762 7,413 7,002 7,389 2,243 36,143 14,836 Operating income (loss) 1,423 3,631 916 930 (7,173) (540) (813) 607 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets - (5) (2) - 17 1,250 1,260 62 Operating grants - - - - 6,281 - 6,281 - Interest income 238 944 931 776 263 127 3,279 726 Interest expense (600) (3,041) (1,426) - - - (5,067) - Total nonoperating revenues (expenses) (362) (2,102) (497) 776 6,561 1,377 5,753 788 Income (loss) before capital contributions and transfers 1,061 1,529 419 1,706 (612) 837 4,940 1,395 Capital contributions 8 607 1,003 - 17 2,885 4,520 3 Transfers in - - - - 245 450 695 228 Transfers out (206) (69) (820) (145) - (1,749) (2,989) (66) Change in net assets 863 2,067 602 1,561 (350) 2,423 7,166 1,560 Net Assets, Beginning 11,771 71,052 60,004 26,230 10,051 44,546 17,970 Net Assets, Ending 12,634 $ 73,119 $ 60,606 $ 27,791 $ 9,701 $ 46,969 $ 19,530 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 348 Change in net assets of business-type activities 7,514 $ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2008 (amounts expressed in thousands) 39 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Cash Flows From Operating Activities Receipts from customers and users 4,721 $ 12,467 $ 8,472 $ 7,538 $ 205 $ 1,412 $ 34,815 $ 15,339 $ Payments to suppliers (758) (2,930) (2,977) (3,512) (6,422) (525) $ (17,124) (11,272) $ Payments to employees (1,702) (1,645) (2,154) (2,190) (863) (691) $ (9,245) (1,782) $ Net cash flows from operating activities 2,261 7,892 3,341 1,836 (7,080) 196 8,446 2,285 Cash Flows From Noncapital Financing Activities Grants received - - - - 6,281 - 6,281 - Transfers from other funds - - - - 245 356 601 228 Transfers to other funds (206) (38) (756) (145) - (1,702) (2,847) (66) Repayment/(payment) of notes receivable - - - 5 (65) - (60) - Advances from other funds 3,050 - - - - 25 3,075 - Advances to other funds - - - (3,874) - - (3,874) - Net cash flows from noncapital financing activities 2,844 (38) (756) (4,014) 6,461 (1,321) 3,176 162 Cash Flows From Capital and Related Financing Activities Capital grants received - - - - 17 1,580 1,597 - Acquisition and construction of property and equipment (3,119) (44) (1,345) (1,320) (454) (1,998) (8,280) (1,491) Proceeds from sale of property - - - - 439 1,610 2,049 78 Proceeds from issuance of refunding debt (principal less discount) - - 3,335 - - - 3,335 - Principal paid on bonded debt (356) (4,105) (4,867) - - - (9,328) - Interest paid on bonded debt (605) (3,070) (1,429) - - - (5,104) - Net cash flows from capital and related financing activities (4,080) (7,219) (4,306) (1,320) 2 1,192 (15,731) (1,413) Cash Flows From Investing Activities Interest on investments 267 672 1,013 970 306 131 3,359 803 Net increase (decrease) in cash and cash equivalents 1,292 1,307 (708) (2,528) (311) 198 (750) 1,837 Cash and Cash Equivalents, Beginning 4,458 21,936 18,258 27,275 5,853 2,324 80,104 14,477 Cash and Cash Equivalents, Ending 5,750 $ 23,243 $ 17,550 $ 24,747 $ 5,542 $ 2,522 $ 79,354 $ 16,314 $ (continued) (amounts expressed in thousands) Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2008 40 Governmental 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) 1,423 $ 3,631 $ 916 $ 930 $ (7,173) $ (540) $ (813) $ 607 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 880 4,181 2,065 596 180 889 8,791 1,188 $ Changes in: Receivables: Accounts and unbilled usage (34) 73 109 (520) (3) (16) (391) (3) Due from other governments - 1 - 116 14 (275) (144) (101) Inventories - - 29 - - - 29 (42) Accounts payable 5 - 206 134 (78) 127 394 457 Accrued liabilities (11) 6 6 22 8 11 42 179 Due to other governments - - (24) (33) (6) - (63) - Deposits (2) - 34 10 (22) - 20 - Landfill closure/postclosure liability - - - 581 - - 581 - Total adjustments 838 4,261 2,425 906 93 736 9,259 1,678 Net cash flows from operating activities 2,261 $ 7,892 $ 3,341 $ 1,836 $ (7,080) $ 196 $ 8,446 $ 2,285 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others 8$ 607 $ 1,003 $ - $ - $ 2,979 $ 4,597 $ 3 Contributions of capital assets to government and others -$ (31) $ (64) $ - $ - $ (47) $ (142) $ - The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS For the Year Ended June 30, 2008 41 Agency Funds Assets Equity in pooled cash and investments 216 $ Accounts receivable 5 Interest receivable 2 Total assets 223 $ Liabilities Accrued liabilities 9$ Due to agency 214 Total liabilities 223 $ The notes to the financial statements are an integral part of this statement. June 30, 2008 (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES 42 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2008 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, 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, 2008 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund 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, 2008 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 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. 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. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to 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, 2008 Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the General Fund, Water Fund, and the Equipment Maintenance 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, 2008 Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 13). Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an 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, 2008 A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the 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 $31,555,000 in revenues and other financing sources and by $51,775,000 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, 2008 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $1,595,000. 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 2009 to cover the capital expenditures. 3. Cash and Pooled Investments The City’s deposits in banks at June 30, 2008 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open–end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; certain 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 $3,000,000 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 $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Due to legal and budgetary reasons, the general fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2008, consisted of the following: Community Development Debt Block Grant Service Sanitation Total Advances to: General -$ -$ 1,719,388 $ 1,719,388 $ Nonmajor governmental - 228,216 - 228,216 Parking - - 3,050,000 3,050,000 Housing Authority 18,000 - - 18,000 Nonmajor enterprise - - 1,205,088 1,205,088 Total 18,000 $ 228,216 $ 5,974,476 $ 6,220,692 $ Advances from Interfund balances at June 30, 2008, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans and land. $1,181,863 of the $1,205,088 advances to the Non-Major Enterprise Funds and $2,450,183 of the $3,050,000 advance to the Parking Fund are not expected to be repaid within the next year. $1,503,545 of the $1,719,388 advances to the General Fund and $218,275 of the $228,216 advance to the Non-Major Governmental Funds are not expected to be repaid within the next year. None of the $18,000 advance to Housing Authority is expected to be repaid within the next year. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Interfund transfers for the year ended June 30, 2008, consisted of the following: Community Employee Development Nonmajor General Benefits Block Grant Governmental Parking Transfer to: General -$ 7,892,024 $ -$ 58,304 $ 200,000 $ Debt service 1,005,968 - - 3,153,505 - Nonmajor governmental 3,704,105 316,297 - 6,558,884 - Housing Authority - - 245,080 - - Nonmajor enterprise 112,000 - - 244,399 - Internal Service 37,599 - - - 5,704 Total Transfer to 4,859,672 $ 8,208,321 $ 245,080 $ 10,015,092 $ 205,704 $ Transfer from (continued) In the fund financial statements, total transfers out of $26,383,000 are greater than total transfers in of $26,337,202 because of the treatment of transfers of capital assets to the governmental activities capital assets. During the year, construction in progress related to construction along Highway 6 with a value of $46,672 was transferred to governmental activities capital assets from Stormwater. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Stormwater did report a transfer out for the capital resources given. Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the 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, 2008 Wastewater Nonmajor Internal Total Treatment Water Sanitation Enterprise Service Transfer from 14,699 $ 14,699 $ - $ 160,171 $ - $ 8,339,897 $ - - - 1,513,964 - 5,673,437 - 718,068 7,554 28,573 66,221 11,399,702 - - - - - 245,080 30,653 63,561 - - - 450,613 24,085 24,085 137,000 - - 228,473 69,437 $ 820,413 $ 144,554 $ 1,702,708 $ 66,221 $ 26,337,202 Transfer to governmental activities capital assets from enterprise funds 46,672 26,383,874 $ Transfer from 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 5. Capital Assets Capital asset activity for the year ended June 30, 2008, was as follows: Beginning July 1, 2007 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2008 Governmental activities: Capital assets, not being depreciated: Land 14,130,588 $ 1,377,157 $ 26,000 $ 15,481,745 $ Construction in progress 11,862,687 10,091,869 9,960,419 11,994,137 Total capital assets, not being depreciated 25,993,275 11,469,026 9,986,419 27,475,882 Capital assets, being depreciated: Buildings 56,930,937 1,949,349 64,036 58,816,250 Improvements other than buildings 4,873,471 341,520 7,000 5,207,991 Machinery and equipment 33,197,913 4,982,285 2,380,607 35,799,591 Infrastructure 88,790,660 1,976,772 53,579 90,713,853 Total capital assets being depreciated 183,792,981 9,249,926 2,505,222 190,537,685 Less accumulated depreciation for: Buildings 13,761,566 1,466,528 56,536 15,171,558 Improvements other than buildings 1,284,074 194,874 7,000 1,471,948 Machinery and equipment 22,642,492 3,003,366 2,265,659 23,380,199 Infrastructure 18,717,659 2,034,302 34,918 20,717,043 Total accumulated depreciation 56,405,791 6,699,070 2,364,113 60,740,748 Total capital assets, being depreciated, net 127,387,190 2,550,856 141,109 129,796,937 Governmental activities capital assets, net 153,380,465 $ 14,019,882 $ 10,127,528 $ 157,272,819 $ 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Beginning July 1, 2007 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2008 Business-type activities: Capital assets, not being depreciated: Land 22,586,978 $ 3,757,302 $ 423,687 $ 25,920,593 $ Construction in progress 7,316,421 4,479,869 997,072 10,799,218 Total capital assets, not being depreciated 29,903,399 8,237,171 1,420,759 36,719,811 Capital assets, being depreciated: Buildings 118,540,101 237,051 12,427 118,764,725 Improvements other than buildings 10,412,335 - - 10,412,335 Machinery and equipment 21,409,896 219,065 117,576 21,511,385 Infrastructure 172,324,398 3,021,131 - 175,345,529 Total capital assets being depreciated 322,686,730 3,477,247 130,003 326,033,974 Less accumulated depreciation for: Buildings 37,781,455 3,290,287 9,927 41,061,815 Improvements other than buildings 2,312,172 433,605 - 2,745,777 Machinery and equipment 10,042,798 1,237,316 72,650 11,207,464 Infrastructure 46,875,469 3,828,429 - 50,703,898 Total accumulated depreciation 97,011,894 8,789,637 82,577 105,718,954 Total capital assets, being depreciated, net 225,674,836 (5,312,390) 47,426 220,315,020 Business-type activities capital assets, net 255,578,235 $ 2,924,781 $ 1,468,185 $ 257,034,831 $ Depreciation expense was charged to functions as follows: Governmental activities: Public safety 588,562 $ Public works 2,746,763 Culture and recreation 1,827,373 Community and economic development 38,119 General government 310,080 Internal service funds 1,188,173 Total depreciation expense - governmental activities 6,699,070 $ Business-type activities: Parking 879,425 $ Wastewater treatment 4,180,682 Water 2,065,065 Sanitation 595,849 Housing authority 179,812 Nonmajor enterprise 888,804 Total depreciation expense - business-type activities 8,789,637 $ 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 As of June 30, 2008, $1,505,553 in capital assets were idle due to flooding of the Iowa River. These assets will either be repaired or replaced. The City expects to receive funds from Federal Emergency Management Association, the State of Iowa, and insurance to reduce the City’s recovery expenses. No impairment loss has been recorded as the City cannot reasonably estimate insurance recoveries and repair and\or replacement costs. 6. Bonded and Other Long-term Debt Changes in Long-Term Liabilities Long-term liability activity for the year ended June 30, 2008, was as follows: Due Within July 1, 2007 Issues Retirements June 30, 2008 One Year Governmental activities: General obligation bonds $ 80,350,630 $ 9,150,000 $ 7,323,235 $ 82,177,395 $ 8,333,235 Plus: Unamortized Premium (discount) 91,264 15,681 15,808 91,137 15,808 Total general obligation bonds 80,441,894 9,165,681 7,339,043 82,268,532 8,349,043 Note payable 211,000 - - 211,000 - Employee vested benefits 1,964,342 1,027,938 1,029,990 1,962,290 1,049,665 $ 82,617,236 $ 10,193,619 $ 8,369,033 $ 84,441,822 $ 9,398,708 Business-type activities: General obligation bonds $ 5,489,370 -$ $ 576,765 $ 4,912,605 $ 571,765 Less: Unamortize d discounts 30,737 - 3,842 26,895 3,842 Total general obligation bonds 5,458,633 - 572,923 4,885,710 567,923 Revenue bonds 100,760,000 - 5,415,000 95,345,000 5,625,000 Less: Unamortize d Discounts 867,663 - 72,049 795,614 72,049 Total revenue bonds 99,892,337 - 5,342,951 94,549,386 5,552,951 Landfill closure/post-closure 9,516,611 581,080 - 10,097,691 - Employee vested benefits 464,030 274,149 243,810 494,369 265,936 $115,331,611 $ 855,229 $ 6,159,684 $110,027,156 $ 6,386,810 A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1%, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. General Obligation Bonds Various issues of general obligation bonds totaling $87,090,000 are outstanding as of June 30, 2008. The bonds have interest rates ranging from 2.5% to 5.6% and mature in varying annual amounts ranging from $85,000 to $2,195,000 per issue, with the final 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. Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 Principal Interest Principal Interest 2009 8,333,235 3,551,333 571,765 181,493 2010 8,504,538 3,246,243 590,462 161,826 2011 8,800,840 2,901,964 604,160 140,850 2012 9,117,143 2,540,242 622,857 119,247 2013 8,143,445 2,158,552 641,555 96,592 2014-2018 32,283,194 5,792,166 1,881,806 152,620 2019-2023 6,995,000 897,513 - - Total 82,177,395 $ 21,088,013 $ 4,912,605 $ 852,628 $ Governmental Activities Business-type Activities Revenue Bonds As of June 30, 2008, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 11,350,000 $ 83,935,000 $ 30,700,000 Interest rates 5.9% to 6.0% 3.3% to 5.8% 2.0% to 5.6% Annual maturities $ 370,000 to $ 315,000 to $ 290,000 to $ 895,000 $ 3,010,000 $ 910,000 Amount outstanding $ 10,035,000 $ 60,475,000 $ 24,835,000 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Business-type Activities June 30 Principal Interest 2009 5,625,000 4,668,765 2010 5,875,000 4,413,216 2011 6,195,000 4,139,939 2012 6,505,000 3,851,052 2013 6,640,000 3,548,294 2014-2018 27,390,000 13,650,896 2019-2023 29,185,000 5,834,673 2024-2028 7,930,000 593,413 95,345,000 $ 40,700,248 $ 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% 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. 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2008, are comprised of the following issues: Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2008 General Obligation Bonds: Multi-Purpose Apr. 1998 8,500,000 $ 4.35 - 4.75 6/13 2,750,000 $ Multi-Purpose Mar. 1999 9,000,000 4.125 - 4.75 6/18 4,750,000 Multi-Purpose Jul. 2000 14,310,000 5.0 - 5.5 6/18 9,580,000 Multi-Purpose Jun. 2001 11,500,000 4.0 - 4.9 6/16 6,785,000 Multi-Purpose and Library Construction May 2002 29,100,000 3.5 - 5.0 6/21 18,835,000 Refunded Multi-Purpose (1) Oct. 2002 10,600,000 2.5 - 4.0 6/15 2,825,000 Multi-Purpose Nov. 2003 5,570,000 2.5 - 3.6 6/14 3,300,000 Taxable-Urban Renewal Mar. 2004 7,305,000 4.0 - 5.4 6/23 6,990,000 Multi-Purpose Mar. 2005 7,020,000 3.0 - 4.0 6/15 5,175,000 Multi-Purpose Jun. 2006 6,265,000 3.625 - 4.0 6/16 5,250,000 Multi-Purpose Jun. 2006 1,000,000 5.5 - 5.6 6/16 850,000 Refunded Water Construction (2) Sep. 2006 3,350,000 3.6 - 3.75 6/17 2,725,000 Multi-Purpose May 2007 8,870,000 3.75 6/17 8,125,000 Multi-Purpose June 2008 9,150,000 3.25 - 3.75 6/18 9,150,000 Total General Obligation Bonds 87,090,000 $ Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2008 Revenue Bonds: Parking Bonds Dec. 1999 11,350,000 $ 5.875 - 6.0 7/24 10,035,000 $ Wastewater Treatment Bonds Mar. 1996 18,300,000 5.0 - 5.75 7/21 13,300,000 Wastewater Treatment Bonds May 1997 10,600,000 5.15 - 5.5 7/22 7,950,000 Wastewater Treatment Bonds Jan. 1999 7,000,000 4.25 - 4.875 7/19 4,875,000 Wastewater Treatment Bonds Oct. 2000 12,000,000 5.125 - 5.5 7/25 9,915,000 Wastewater Treatment Bonds Dec. 2001 10,250,000 4.5 - 5.0 7/20 10,250,000 Refunded Wastewater Treatment Bonds (3) Apr. 2002 25,785,000 3.25 - 4.1 7/12 14,185,000 Water Bonds May 1999 9,200,000 4.75 - 5.0 7/24 7,335,000 Water Bonds Dec. 2000 13,000,000 5.0 - 5.625 7/25 10,645,000 Water Bonds Oct. 2002 8,500,000 2.0 - 4.65 7/22 6,855,000 Total Revenue Bonds 95,345,000 182,435,000 $ 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 (1) This bond issue has a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. (2) This bond issue has the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. Also, this bond issue refunds the November 1997 Water Construction General Obligation Bonds. (3) This bond issue refunds the January 1993 Wastewater Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Facility Refunding Revenue 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, 2008, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $40,522,172. Debt Legal Compliance Legal Debt Margin: As of June 30, 2008, the general obligation debt issued by the City did not exceed its legal debt margin computed as follows: Assessed valuation: Real property $ 3,888,746,352 Utilities 65,034,635 Total valuation $ 3,953,780,987 Debt limit, 5% of total assessed valuation $ 197,689,049 Debt applicable to debt limit: General obligation bonds 87,090,000 Legal debt margin $ 110,599,049 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 7. Risk Management The City is exposed to various risks of loss related to torts; theft 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, 2008 the City purchased property, liability, and workers’ compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $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 ten fiscal years. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund’s accrued liabilities balance includes a claims liability at June 30, 2008 based on the requirements of GASB Statement 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, 2008 and 2007 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2006 – 2007 $ 1,439,000 $ 233,000 $ 435,000 $ 1,237,000 2007 – 2008 1,237,000 876,000 813,000 1,300,000 Also, the City is partially self-insured, through stop-loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop-loss coverage for claims in excess of $100,000 per employee with an aggregate stop-loss of $6,873,011. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing fee. Changes in the Loss Reserve Fund’s claims liability amount for health care coverage for the years ended June 30, 2008 and 2007 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2006 – 2007 $ 445,000 $ 6,484,000 $ 6,340,000 $ 589,000 2007 – 2008 589,000 5,901,000 5,802,000 688,000 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 8. Contractual Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2008 are as follows: Project Amount Bridge, Street and Traffic Paving and bridge construction, 5,409,385 $ Control Construction engineering design and consulting Other Construction Public Works construction, Culture & Recreation construction, and fire station construction 2,537,216 Water Water main construction 33,475 Sanitation Landfill consulting 346,151 Airport Runway extension consulting, grading and paving 442,708 Cable TV Refranchising consulting 44,290 8,813,225 $ Fund 9. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City’s experience that such actions are settled for amounts substantially less than claimed amounts. The City’s management estimates that the potential 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. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 10. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa The City is a participating employer in the Municipal Fire and Police Retirement System of Iowa (MFPRSI or the Plan), which is a cost-sharing multiple-employer defined benefit public police and fire employees retirement system. All fire fighters and police officers appointed under civil service participate in the Plan. The Plan provides retirement, disability, and death benefits that are established under state statute. The Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to Municipal Fire and Police Retirement System of Iowa, 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% of the member’s average final compensation. Additionally, members retiring with more than 22 years of service will receive an additional 2% of the member’s average final compensation for up to 8 years of additional service. Other benefits are also calculated at varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rates are established by state statute. For the fiscal year ended June 30, 2008, members contributed 9.35%. The City’s contribution rate is based upon an actuarially determined normal contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, the total then being divided by 1% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions. Legislatively appropriated contributions from the state to the plan may further reduce the City’s contribution rate. However, the City’s contribution rate may not be less than 17% of earnable compensation. The City was required to contribute 25.48% of earnable compensation of each member in 2008, 27.75% of earnable compensation in 2007, and 28.21% of earnable compensation in 2006. The contributions paid by the City for the years ended June 30, 2006, 2007, and 2008, were $1,925,332, $1,954,182, and $1,910,454 respectively, and was equal to the required contributions for each year. Iowa Public Employees Retirement System The City contributes to the Iowa Public Employees Retirement System (IPERS), which is a cost-sharing multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to 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% of the average of the highest three years of covered wages times years of service divided by 30. 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Plan members are required to contribute 3.90% of their annual covered salary and the City is required to contribute 6.05% of annual covered payroll. Contribution requirements are established by state statute. The City’s contributions to IPERS for the years ended June 30, 2006, 2007, and 2008, were $1,329,784, $1,384,110, and $1,534,552 respectively, and were equal to the required contributions for each year. 11. Post-Employment Benefits All full-time employees who retire or terminate/resign are offered the following post-employment benefit options: Health insurance and dental insurance – The option of continuing with the City’s health insurance plan at the individual’s expense. Life insurance – The option of converting the employee’s City-paid policy to an individual policy at the individual’s expense with the City’s life insurance carrier. Long-term disability – For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee’s City-paid group policy to a personal policy at the individual’s expense with the City’s long-term disability insurance carrier. The above options, while at the individual’s own expense, are included within the City’s overall insurance package. Therefore, a portion of the above coverage is being subsidized by the City and its current employees. However, the City cannot reasonably estimate the amount of this subsidy and it is being expensed as incurred by the City. 12. Municipal Utility Systems Water System The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, and Public Information/Education. There are a total of 32.75 (FTE) employees who work in the Water Division. This division serves 67,062 people and has over 25,000 customer service connections. The average daily use for 2008 was 5.48 million gallons per day (MGD). A peak flow of 10.6 MGD was experienced 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. 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Distribution System : The water flows through approximately 284 miles of water mains and includes over 25,000 service connections. The distribution piping consists of cast iron, ductile and PVS main that ranges in size from 2” to 30”. The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,100 hydrants located throughout the community. Billing and Collections : Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and 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% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2007. 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 Monthly Usage in excess of 100 cubic feet (c.f.) 101 – 3,000 $2.99 per 100 c.f. 3,001 and over $2.15 per 100 c.f. 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. 1999 15% 2000 10% 2001 0% 2002 0% 2003 - 5% 2004 - 5% 2005 0% 2006 0% 2007 - 5% 2008 0% 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Financial Information : The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2008, 2007, and 2006. 2008 2007 2006 Operating Revenues: Charges for services 8,195 $ 8,240$ 9,012 $ Miscellaneous 134 51 165 Total operating revenues 8,329 8,291 9,177 Operating Expenses: Personal services 2,160 2,091 2,024 Commodities 1,348 1,463 1,908 Services and charges 1,840 1,802 1,765 5,348 5,356 5,697 Depreciation 2,065 2,024 1,985 Total operating expenses 7,413 7,380 7,682 Operating income 916 911 1,495 Nonoperating Revenues (Expenses): (Loss) on disposal of capital assets (2) - (25) Interest income 931 929 741 Interest expense (1,426) (1,549) (1,607) Total nonoperating revenues (expenses) (497) (620) (891) Income before capital contributions and transfers 419 291 604 Capital contributions 314 845 606 Transfers in 689 3,045 - Transfers out (820) (237) (467) Change in net assets 602 3,944 743 Net Assets, Beginning 60,004 56,060 55,317 Net Assets, Ending 60,606 $ 60,004$ 56,060 $ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS WATER SYSTEM STATEMENT OF REVENUES, EXPENSES 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2008 and the budget for the fiscal year ended June 30, 2009 on a cash basis. FY09 Actual Budget Percentage Budget Charges for services 8,310 $ 8,678 $ 95.76% 8,425 $ Interest Income 1,013 614 164.98% 1,025 Miscellaneous 129 89 144.94% 49 Total Receipts 9,452 9,381 100.76% 9,499 Personal services 2,298 2,242 102.50% 2,371 Commodities 549 640 85.78% 768 Services and charges 1,816 2,214 82.02% 2,539 Capital Outla y 1,819 3,115 58.39% 3,507 Transfer to Capital Project Funds 1,917 3,844 49.87% 3,071 Operating Subsid y 15 15 100.00% 17 Debt Service Payments 2,981 2,981 100.00% 2,959 Total Disbursements 11,395 $ 15,051 $ 75.71% 15,232 $ WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2008 (amounts expressed in thousands) 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. 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 is at two-thirds of the design capacity. Both plants are in compliance with federal clean water standards. Billing and Collections : Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside 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% of gross revenues for the past three years. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Rates: The following rates and charges were effective July 1, 2007. Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $7.76 Monthly Usage in excess of 100 cubic feet (c.f.) $3.80 A rate increase of 5% was approved by the City Council and the following rates and charges went into effect July 1, 2008. Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.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. 1999 0% 2000 20% 2001 5% 2002 5% 2003 0% 2004 0% 2005 0% 2006 0% 2007 8% 2008 0% 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Financial Information : The following table summarizes the results of operations for the Sewer System for the fiscal years ended June 30, 2008, 2007, and 2006. 2008 2007 2006 Operatin g Revenues: Charges for services 12,318 $ 12,535 $ 12,145 $ Miscellaneous 75 53 40 Total operating revenues 12,393 12,588 12,185 Operatin g Expenses: Personal services 1,651 1,497 1,565 Commodities 606 554 533 Services and charges 2,324 2,185 2,162 4,581 4,236 4,260 Depreciation 4,181 4,209 4,037 Total operating expenses 8,762 8,445 8,297 Operating income (loss) 3,631 4,143 3,888 Nonoperatin g Revenues (Expenses): Gain (loss) on disposal of capital assets (5) - 17 Operating grants - 1 - Interest income 944 1,119 596 Interest expense (3,041) (3,213) (3,375) Total nonoperating revenues (expenses) (2,102) (2,093) (2,762) Income before capital contributions and transfers 1,529 2,050 1,126 Capital contributions 577 1,539 773 Transfers in 30 928 60 Transfers out (69) (97) (222) Change in net assets 2,067 4,420 1,737 Net Assets, Be ginnin g 71,052 66,632 64,895 Net Assets, Endin g 73,119 $ 71,052 $ 66,632 $ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 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. FY09 Actual Budget Percentage Budget Charges for services 12,512 $ 12,866$ 97.25% 13,575 $ Interest Income 672 490 137.14% 915 Miscellaneous 89 5 1780.00% - Total Receipts 13,273 13,361 99.34% 14,490 Personal services 1,646 $ 1,786$ 92.16% 1,802 $ Commodities 497 508 97.83% 473 Services and charges 2,328 2,434 95.65% 2,375 Capital Outlay 172 762 22.57% 1,218 Transfer to Capital Project Funds 54 460 11.74% 1,316 Operating Subsidy 15 15 100.00% 17 Debt Service Payments 7,247 7,247 100.00% 7,251 Total Disbursements 11,959 $ 13,212$ 90.52% 14,452 $ SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2008 (amounts expressed in thousands) 13. Landfill Closure and Post-closure Care Costs In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post-closure Care Costs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post-closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and post-closure care costs as of June 30, 2008, is approximately $10,097,690, which is based on 78.5% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,685,300 will be recognized as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2008, was determined by engineers from Howard R. Green Company and approximated $12,863,300. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2008. These amounts are based on an estimated post- closure care and monitoring period of 30 years, consistent with current State Department of Natural 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Resources regulations. However, the actual cost of closure and post-closure care may be higher due to inflation, changes 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, 2008, the Sanitation Fund had $11,184,101 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. 14. Subsequent events On October 15, 2008 the City of Iowa City received and awarded capital loan notes for General Obligation Refunding Capital Loan Notes, Series 2008B in the amount of $17,005,000. The notes were issued to current refund on October 15, 2008, $2,750,000 of the City’s outstanding General Obligation Bonds, Series 1998, dated April 1, 1998, $4,750,000 of the City’s outstanding General Obligation Bonds, Series 1999, dated March 15, 1999, and $9,580,000 of the City’s outstanding General Obligation Bonds, Series 2000, dated July 1, 2000, for a total of $17,080,000. Also, on October 15, 2008 the City of Iowa City received and awarded capital loan notes for Sewer Revenue Refunding Capital Loan Notes, Series 2008C in the amount of $24,280,000. The notes were issued to current refund on October 15, 2008, $12,650,000 of the City’s outstanding Sewer Revenue Bonds, Series 1996, dated March 15, 1996, $7,600,000 of the City’s outstanding Sewer Revenue Bonds, Series 1997, dated June 1, 1997, and $4,560,000 of the City’s outstanding Sewer Revenue Bonds, Series 1999, dated February 1, 1999, for a total of $24,810,000. In addition, on October 15, 2008 the City of Iowa City received and awarded capital loan notes for Water Revenue Refunding Capital Loan Notes, Series 2008D in the amount of $7,115,000. The notes were issued to current refund on October 15, 2008, $7,045,000 of the City’s outstanding Water Revenue Bonds, Series 1999, dated May 1, 1999. 15. New Governmental Accounting Standards Board (GASB) Standards The 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. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions issued June 2004, will be effective for the City for the fiscal year ending June 30, 2009. This statement establishes standards for the measurement, recognition, and display of (OPEB) expense/expenditures and related liabilities (assets), note disclosures and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2008 Statement No. 47, Accounting for Termination Benefits issued June 2005, establishes accounting standards for termination benefits. For termination benefits provided through an existing defined benefit OPEB plan, the provisions of this Statement should be implemented simultaneously with the requirements of Statement 45. Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations issued November 2006, will be effective for the fiscal year ending June 30, 2009. This statement establishes standards for accounting and financial reporting for obligations to address the current or potential detrimental effects of existing pollution. Statement No. 51, Accounting and Financial Reporting for Intangible Assets , issued June 2007, will be effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not specifically excluded by its scope be classified as capital assets. Statement No. 52, Land and Other Real Estate Held as Investments by Endowments , issued November 2007, will be effective for the fiscal year ending June 30, 2009. This statement establishes consistent standards for the reporting of land and other real estate held as investments by essentially similar entities. Statement No. 53, Accounting and Financial Reporting for Derivative Instruments , issued June 2008, will be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. The City’s management has not yet determined the effect these statements will have on the City’s financial statements. 72 73 Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Property Tax 39,838 $ -$ 39,838 $ Tax increment financing taxes 3,050 - 3,050 Other city taxes 1,499 - 1,499 Licenses and permits 1,285 - 1,285 Intergovernmental 14,763 7,830 22,593 Charges for services 4,435 32,821 37,256 Use of money and property 2,536 3,674 6,210 Miscellaneous 2,471 1,905 4,376 Total revenues 69,877 46,230 116,107 Expenditures/Expenses: Public safety 18,026 - 18,026 Public works 11,830 - 11,830 Culture and recreation 10,546 - 10,546 Community and economic development 5,322 - 5,322 General government 7,144 - 7,144 Debt service 11,656 - 11,656 Capital outlay 12,762 - 12,762 Business-type - 45,707 45,707 Total expenditures/expenses 77,286 45,707 122,993 Excess (deficiency) of revenues over (under) expenditures/expenses (7,409) 523 (6,886) Other financing sources and uses, net 12,999 (1,689) 11,310 Net change in fund balances 5,590 (1,166) 4,424 Balances, beginning of year 41,630 79,405 121,035 Balances, end of year 47,220 78,239 125,459 See Note to Required Supplementary Information. CITY OF IOWA CITY BUDGETARY COMPARISON SCHEDULE BUDGET AND ACTUAL - ALL GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2008 (dollar amounts expressed in thousands) BUDGETARY BASIS 74 Final to Actual Variance - Positive Original Final (Negative) 39,974 $ 39,974 $ (136) $ 1,798 2,621 429 1,446 1,518 (19) 1,260 1,325 (40) 21,657 33,131 (10,538) 37,721 37,795 (539) 3,939 4,399 1,811 4,567 4,054 322 112,362 124,817 (8,710) 17,504 18,634 608 11,135 13,027 1,197 10,647 11,341 795 6,041 6,636 1,314 7,892 7,700 556 11,718 11,718 62 14,252 32,937 20,175 45,878 55,750 10,043 125,067 157,743 34,750 (12,705) (32,926) 26,040 10,973 10,973 337 (1,732) (21,953) 26,377 97,790 121,035 96,058 99,082 Budgeted Amounts 75 Accrual Modified Accrual Budget Basis Adjustments Basis Revenues 69,877 $ (1,597) $ 68,280 $ Expenditures 77,286 (1,436) 75,850 Net (7,409) (161) (7,570) Other financing sources (uses) 12,999 (1,637) 11,362 Beginning Fund Balances 41,630 $ (5,001) $ 36,629 $ Ending Fund Balances 47,220 $ (6,799) $ 40,421 $ Accrual Accrual Budget Basis Adjustments Basis Revenues 46,230 $ (80) $ 46,150 $ Expenditures 45,707 (4,497) 41,210 Net 523 4,417 4,940 Other financing sources (uses) (1,689) 3,915 2,226 Beginning Fund Balances 79,405 144,249 $ 223,654 Ending Fund Balances 78,239 $ 152,581 $ 230,820 $ See Note to Required Supplementary Information. CITY OF IOWA CITY Governmental Fund Types Enterprise Fund Types BUDGETARY COMPARISON SCHEDULE BUDGET TO GAAP RECONCILIATION REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2008 (dollar amounts expressed in thousands) 76 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2008 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 expenditures by $32,676,000. The budget amendments were primarily due to changes in breadth and timing of capital improvement projects. 77 78 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: Bridge, Street, and Traffic Control Construction Fund – accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems. Other Construction Fund – accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. 79 Bridge, Other Johnson Street, and Shared County Traffic Revenue and Economic Council of Control Other Grants Development Governments Construction Construction Total Assets Equity in pooled cash and investments 1,970 $ 308 $ 49 $ 1,029 $ 2,242 $ 5,598 $ Receivables: Property tax - 34 - - - 34 Accounts and unbilled usage - - - 11 5 16 Interest - 30 - - 16 46 Notes 549 - - - - 549 Due from other governments 503 - 41 1,012 146 1,702 Restricted assets: Equity in pooled cash and investments 5 - - - 12,719 12,724 Total assets 3,027 $ 372 $ 90 $ 2,052 $ 15,128 $ 20,669 $ Liabilities and Fund Balances Liabilities: Accounts payable 68 $ -$ 3$ 1,986 $ 225 $ 2,282 $ Contracts payable - - - 635 696 1,331 Accrued liabilities 49 - 17 14 8 88 Advances from other funds 228 - - - - 228 Deferred revenue 556 - - 1,012 120 1,688 Liabilities payable from restricted assets: Deposits 5 - - - - 5 Total liabilities 906 - 20 3,647 1,049 5,622 Fund balances: Reserved for: Encumbrances - - - - 1,366 1,366 Unreserved Undesignated 2,121 372 70 (1,595) 12,713 13,681 Total fund balances 2,121 372 70 (1,595) 14,079 15,047 Total liabilities and fund balances 3,027 $ 372 $ 90 $ 2,052 $ 15,128 $ 20,669 $ Special Revenue CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2008 (amounts expressed in thousands) Capital Projects 80 Bridge, Other Johnson Street, and Shared County Traffic Revenue and Economic Council of Control Other Grants Development Governments Construction Construction Total Revenues Property taxes -$ 3,083 $ - $ - $ - $ 3,083 $ Intergovernmental 5,490 - 283 1,367 206 7,346 Charges for services 40 - - - - 40 Use of money and property 57 118 - - 378 553 Miscellaneous 90 - 34 12 135 271 Total revenues 5,677 3,201 317 1,379 719 11,293 Expenditures Current: Public safety - - - - 500 500 Public works 4,688 - - 999 64 5,751 Culture and recreation - - - - 308 308 Community and economic development 171 1,095 577 - 4 1,847 General government - - - - 58 58 Capital outlay 235 - 3 6,191 3,630 10,059 Total expenditures 5,094 1,095 580 7,190 4,564 18,523 Excess (deficiency) of revenues over (under) expenditures 583 2,106 (263) (5,811) (3,845) (7,230) Other Financing Sources (Uses) Issuance of bonds - - - - 9,150 9,150 Premium on issuance of bonds - - - - 16 16 Transfers in 457 - 260 7,015 3,668 11,400 Transfers out (1,189) (2,788) - - (6,038) (10,015) Total other financing sources and (uses) (732) (2,788) 260 7,015 6,796 10,551 Net change in fund balances (149) (682) (3) 1,204 2,951 3,321 Fund Balances, Beginning 2,270 1,054 73 (2,799) 11,128 11,726 Fund Balances, Ending 2,121 $ 372 $ 70 $ (1,595) $ 14,079 $ 15,047 $ Special Revenue CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended June 30, 2008 (amounts expressed in thousands) NONMAJOR GOVERNMENTAL FUNDS Capital Projects 81 82 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. 83 Cable Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments 90 $ 1,224 $ 1,091 $ 2,405 $ Receivables: Accounts and unbilled usage 4 68 184 256 Interest 13 10 12 35 Due from other governments 632 - - 632 Total current assets 739 1,302 1,287 3,328 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 10 - 107 117 Capital assets: Land 7,324 2,156 - 9,480 Buildings 3,563 - 741 4,304 Improvements other than buildings 421 - - 421 Machinery and equipment 282 232 89 603 Infrastructure 2,233 32,252 - 34,485 Accumulated depreciation (3,356) (6,363) (245) (9,964) Construction in progress 4,516 1,650 - 6,166 Total noncurrent assets 14,993 29,927 692 45,612 Total assets 15,732 31,229 1,979 48,940 Liabilities Current liabilities: Accounts payable 79 48 108 235 Contracts payable 450 - - 450 Accrued liabilities 10 7 54 71 Advances from other funds 1,205 - - 1,205 Total current liabilities 1,744 55 162 1,961 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 10 - - 10 Total noncurrent liabilities 10 - - 10 Total liabilities 1,754 55 162 1,971 Net Assets Invested in capital assets, net of related debt 14,983 29,927 585 45,495 Unrestricted (1,005) 1,247 1,232 1,474 Total net assets 13,978 $ 31,174 $ 1,817 $ 46,969 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2008 84 Cable Airport Stormwater Television Total Operating Revenues: Charges for services 258 $ 616 $ 814 $ 1,688 $ Miscellaneous 14 - 1 15 Total operating revenues 272 616 815 1,703 Operating Expenses: Personal services 102 145 455 702 Commodities 9 93 13 115 Services and charges 277 163 97 537 388 401 565 1,354 Depreciation 181 671 37 889 Total operating expenses 569 1,072 602 2,243 Operating income (loss) (297) (456) 213 (540) Nonoperating Revenues (Expenses): Gain on disposal of capital assets 1,250 - - 1,250 Interest income 24 49 54 127 Total nonoperating revenues (expenses) 1,274 49 54 1,377 Income (loss) before capital contributions and transfers 977 (407) 267 837 Capital contributions 1,580 1,305 - 2,885 Transfers in 356 94 - 450 Transfers out (1,521) (75) (153) (1,749) . Change in net assets 1,392 917 114 2,423 Net Assets, Beginning 12,586 30,257 1,703 44,546 Net Assets, Ending 13,978 $ 31,174 $ 1,817 $ 46,969 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2008 AND CHANGES IN FUND NET ASSETS 85 Cable Airport Stormwater Television Total Cash Flows From Operating Activities Receipts from customers and users (7) $ 615 $ 804 $ 1,412 $ Payments to suppliers (303) (212) (10) (525) Payments to employees (102) (144) (445) (691) Net cash flows from operating activities (412) 259 349 196 Cash Flows From Noncapital Financing Activities Transfers from other funds 356 - - 356 Transfers to other funds (1,521) (28) (153) (1,702) Advances from other funds 25 - - 25 Net cash flows from noncapital financing activities (1,140) (28) (153) (1,321) Cash Flows From Capital and Related Financing Activities Capital grants received 1,580 - - 1,580 Acquisition and construction of property and equipment (1,959) (29) (10) (1,998) Proceeds from sale of property 1,610 - - 1,610 Net cash flows from capital and related financing activities 1,231 (29) (10) 1,192 Cash Flows From Investing Activities Interest on investments 23 53 55 131 Net increase (decrease) in cash and cash equivalents (298) 255 241 198 Cash and Cash Equivalents, Beginning 398 969 957 2,324 Cash and Cash Equivalents, Ending 100 $ 1,224 $ 1,198 $ 2,522 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) (297) $ (456) $ 213 $ (540) $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 181 671 37 889 Changes in: Receivables: Accounts and unbilled usage (4) (1) (11) (16) Due from other governments (275) - - (275) Accounts payable (17) 44 100 127 Accrued liabilities - 1 10 11 Total adjustments (115) 715 136 736 Net cash flows from operating activities (412) $ 259 $ 349 $ 196 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others 1,580 $ 1,399 $ -$ 2,979 $ Contributions of capital assets to government and others -$ (47) $ -$ (47) $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2008 86 INTERNAL SERVICE FUNDS Internal Service Funds account for goods and services provided by one department to other City departments on a cost-reimbursement basis. The funds in this category are: Equipment Maintenance Fund – accounts for the provision of maintenance for City vehicles and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund – accounts for the support services of photocopying, paper supplies, mail, overnight shipping, and two-way radios provided to other City departments. Loss Reserve Fund – accounts for the property, liability, Workers’ Compensation and health 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. 87 Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments 5,791 $ 556 $ 7,346 $ 2,621 $ 16,314 $ Receivables: Accounts and unbilled usage 3 - - - 3 Interest 48 5 67 23 143 Due from other governments 169 - - - 169 Inventories 321 - - - 321 Total current assets 6,332 561 7,413 2,644 16,950 Noncurrent assets: Capital assets: Land 45 - - - 45 Buildings 578 - - 253 831 Improvements other than buildings 50 - - - 50 Machinery and equipment 11,000 241 8 1,527 12,776 Infrastructure - - - 1,006 1,006 Accumulated depreciation (7,692) (171) (1) (1,418) (9,282) Construction in progress 120 - - - 120 Total noncurrent assets 4,101 70 7 1,368 5,546 Total assets 10,433 631 7,420 4,012 22,496 Liabilities Accounts payable 466 6 126 204 802 Accrued liabilities 85 2 1,995 82 2,164 Total liabilities 551 8 2,121 286 2,966 Net Assets Invested in capital assets, net of related debt 4,101 70 7 1,368 5,546 Unrestricted 5,781 553 5,292 2,358 13,984 Total net assets 9,882 $ 623 $ 5,299 $ 3,726 $ 19,530 $ (amounts expressed in thousands) CITY OF IOWA CITY COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2008 88 Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services 4,890 $ 304 $ 8,581 $ 1,668 $ 15,443 $ Total operating revenues 4,890 304 8,581 1,668 15,443 Operating Expenses: Personal services 803 36 166 956 1,961 Commodities 2,485 15 35 408 2,943 Services and charges 386 198 7,713 447 8,744 3,674 249 7,914 1,811 13,648 Depreciation 1,009 15 1 163 1,188 Total operating expenses 4,683 264 7,915 1,974 14,836 Operating income (loss) 207 40 666 (306) 607 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets (1) - - 63 62 Interest income 247 24 317 138 726 Total nonoperating revenues (expenses) 246 24 317 201 788 Income (loss) before capital contributions and transfers 453 64 983 (105) 1,395 Capital contributions - - 3 - 3 Transfers in 180 - - 48 228 Transfers out - - (66) - (66) Change in net assets 633 64 920 (57) 1,560 Net Assets, Beginning 9,249 559 4,379 3,783 17,970 Net Assets, Ending 9,882 $ 623 $ 5,299 $ 3,726 $ 19,530 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended June 30, 2008 AND CHANGES IN FUND NET ASSETS 89 Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from customers and users 4,786 $ 304 $ 8,581 $ 1,668 $ 15,339 $ Payments to suppliers (2,566) (220) (7,829) (657) (11,272) Payments to employees (794) (36) (4) (948) (1,782) Net cash flows from operating activities 1,426 48 748 63 2,285 Cash Flows From Noncapital Financing Activities Transfers from other funds 180 - - 48 228 Operating transfers to other funds - - (66) - (66) Net cash flows from noncapital financing activities 180 - (66) 48 162 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (1,207) - (5) (279) (1,491) Proceeds from sale of property 15 - - 63 78 Net cash flows from capital and related financing activities (1,192) - (5) (216) (1,413) Cash Flows From Investing Activities Interest on investments 274 26 348 155 803 Net increase in cash and cash equivalents 688 74 1,025 50 1,837 Cash and Cash Equivalents, Beginning 5,103 482 6,321 2,571 14,477 Cash and Cash Equivalents, Ending 5,791 $ 556 $ 7,346 $ 2,621 $ 16,314 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) 207 $ 40 $ 666 $ (306) $ 607 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 1,009 15 1 163 1,188 Changes in: Receivables: Accounts and unbilled usage (3) - - - (3) Due from other governments (101) - - - (101) Inventories (42) - - - (42) Accounts payable 347 (7) (81) 198 457 Accrued liabilities 9 - 162 8 179 Total adjustments 1,219 8 82 369 1,678 Net cash flows from operating activities 1,426 $ 48 $ 748 $ 63 $ 2,285 $ Noncash Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others -$ -$ 3$ -$ 3$ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2008 90 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. 91 Balance Balance July 1, 2007 Increases Decreases June 30, 2008 Project Green Assets Equity in pooled cash and investments 197 $ 73 $ 58 $ 212 $ Interest receivable 3 2 3 2 Total assets 200 $ 75 $ 61 $ 214 $ Liabilities Accounts payable 2 $ - $ 2 $ - $ Due to agency 198 75 59 214 Total liabilities 200 $ 75 $ 61 $ 214 $ Library Foundation Assets Equity in pooled cash and investments 1 $ 9 $ 6 $ 4 $ Accounts receivable 5 - - 5 6$ 9$ 6$ 9$ Liabilities Accrued liabilities 6 9 6 9 Total liabilities 6$ 9$ 6$ 9$ Total Agency Funds Assets Equity in pooled cash and investments 198 $ 82 $ 64 $ 216 $ Accounts receivable 5 - - 5 Interest receivable 3 2 3 2 Total assets 206 $ 84 $ 67 $ 223 $ Liabilities Accounts payable 2 $ - $ 2 $ - $ Accrued liabilities 6 9 6 9 Due to agency 198 75 59 214 Total liabilities 206 $ 84 $ 67 $ 223 $ (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended June 30, 2008 AGENCY FUNDS 92 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 95 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 100 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 109 These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information 120 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information 122 These schedules contain service and 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. The city implemented GASB 34 in FY03; schedules presenting government-wide information include information beginning in that year. 93 94 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 Go v e r n m e n t a l a c t i v i t i e s I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 7 3 , 4 4 7 $ 6 7 , 0 9 0 $ 8 4 , 7 6 8 $ 9 5 , 2 2 7 $ 1 0 1 , 0 2 7 $ 8 7 , 7 2 3 $ R e s t r i c t e d 22 , 4 9 9 1 7 , 7 0 5 1 6 , 9 7 3 6 , 8 5 2 8 , 1 8 1 2 3 , 7 4 1 U n r e s t r i c t e d 16 , 9 2 6 1 1 , 7 0 0 3 , 7 9 3 1 0 , 8 2 7 1 1 , 0 4 3 1 8 , 2 2 9 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s 1 1 2 , 8 7 2 $ 9 6 , 4 9 5 $ 1 0 5 , 5 3 4 $ 1 1 2 , 9 0 6 $ 1 2 0 , 2 5 1 $ 1 2 9 , 6 9 3 $ Bu s i n e s s - t y p e a c t i v i t i e s I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 1 1 , 4 8 7 $ 1 5 0 , 8 1 7 $ 1 5 0 , 7 9 7 $ 1 5 5 , 3 4 6 $ 1 7 2 , 5 1 8 $ 1 6 0 , 3 3 0 $ R e s t r i c t e d 24 , 4 2 0 1 4 , 9 3 2 1 5 , 0 3 8 1 5 , 6 8 2 2 3 , 8 9 3 2 1 , 3 2 0 U n r e s t r i c t e d 33 , 3 3 9 3 6 , 2 4 6 4 0 , 7 8 0 4 2 , 9 8 8 3 3 , 6 9 5 5 5 , 9 7 0 To t a l b u s i n e s s - t y p e a c t i v i t e s n e t a s s e t s 1 6 9 , 2 4 6 $ 2 0 1 , 9 9 5 $ 2 0 6 , 6 1 5 $ 2 1 4 , 0 1 6 $ 2 3 0 , 1 0 6 $ 2 3 7 , 6 2 0 $ Pr i m a r y g o v e r n m e n t I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 8 4 , 9 3 4 $ 2 1 7 , 9 0 7 $ 2 3 5 , 5 6 5 $ 2 5 0 , 5 7 3 $ 2 7 3 , 5 4 5 $ 2 4 8 , 0 5 3 $ R e s t r i c t e d 46 , 9 1 9 3 2 , 6 3 7 3 2 , 0 1 1 2 2 , 5 3 4 3 2 , 0 7 4 4 5 , 0 6 1 U n r e s t r i c t e d 50 , 2 6 5 4 7 , 9 4 6 4 4 , 5 7 3 5 3 , 8 1 5 4 4 , 7 3 8 7 4 , 1 9 9 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s 2 8 2 , 1 1 8 $ 2 9 8 , 4 9 0 $ 3 1 2 , 1 4 9 $ 3 2 6 , 9 2 2 $ 3 5 0 , 3 5 7 $ 3 6 7 , 3 1 3 $ Fi s c a l Y e a r NE T A S S E T S B Y C O M P O N E N T CI T Y O F I O W A C I T Y , I O W A La s t S i x F i s c a l Y e a r s (A c c r u a l b a s i s o f a c c o u n t i n g ) (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) 95 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 Ex p e n s e s G o v e r n m e n t a l a c t i v i t i e s : P u b l i c S a f e t y 13 , 8 4 4 $ 1 5 , 0 1 5 $ 1 5 , 2 8 6 $ 1 6 , 6 9 0 $ 1 6 , 6 9 4 $ 2 0 , 5 0 4 $ P u b l i c W o r k s 11 , 5 3 9 1 0 , 4 2 3 1 1 , 5 2 1 1 2 , 7 2 3 1 3 , 5 6 0 1 3 , 7 2 7 C u l t u r e a n d r e c r e a t i o n 10 , 1 3 1 1 2 , 0 5 1 1 1 , 3 4 1 1 1 , 4 5 8 1 1 , 9 7 0 1 3 , 4 6 0 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 3, 1 3 3 2 , 5 8 0 6 , 9 6 0 6 , 2 6 4 4 , 6 8 0 1 , 8 5 0 G e n e r a l g o v e r n m e n t 6, 2 5 1 6 , 5 2 7 6 , 5 0 0 6 , 8 9 2 7 , 2 5 8 7 , 4 3 3 D e b t S e r v i c e 3, 6 6 2 3 , 4 4 0 3 , 6 0 2 3 , 4 0 4 3 , 4 5 9 3 , 5 1 7 T o t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 48 , 5 6 0 5 0 , 0 3 6 5 5 , 2 1 0 5 7 , 4 3 1 5 7 , 6 2 1 6 0 , 4 9 1 B u s i n e s s - t y p e a c t i v i t i e s : W a s t e w a t e r 12 , 0 8 6 1 2 , 3 4 4 1 2 , 2 1 4 1 1 , 7 1 0 1 1 , 5 3 7 1 1 , 7 5 7 W a t e r 7, 8 6 1 8 , 0 1 1 8 , 3 1 3 9 , 3 2 4 8 , 8 2 3 8 , 8 0 4 S a n i t a t i o n 4, 0 8 2 6 , 1 0 3 6 , 0 3 1 6 , 1 0 1 6 , 6 8 4 6 , 8 6 8 H o u s i n g A u t h o r i t y 6, 5 1 9 7 , 2 1 9 7 , 4 6 6 7 , 0 2 6 6 , 8 8 4 7 , 3 7 4 P a r k i n g 3, 5 5 4 3 , 8 9 8 3 , 9 8 9 3 , 8 8 4 4 , 4 0 3 3 , 9 1 3 A i r p o r t 43 1 5 1 5 5 2 0 5 1 2 4 1 8 5 6 0 S t o r m w a t e r 65 2 1 , 4 5 2 8 1 7 9 3 2 1 , 0 7 2 C a b l e T e l e v i s i o n 68 7 5 4 9 6 0 7 5 7 6 5 2 5 5 9 8 T o t a l b u s i n e s s - t y p e a c t i v i t i e s e x p e n s e s 35 , 2 2 0 3 9 , 2 9 1 4 0 , 5 9 2 3 9 , 9 5 0 4 0 , 2 0 6 4 0 , 9 4 6 T o t a l p r i m a r y g o v e r n m e n t e x p e n s e s 83 , 7 8 0 $ 8 9 , 3 2 7 $ 9 5 , 8 0 2 $ 9 7 , 3 8 1 $ 9 7 , 8 2 7 $ 1 0 1 , 4 3 7 $ Pr o g r a m R e v e n u e s G o v e r n m e n t a l a c t i v i t i e s : C h a r g e s f o r s e r v i c e s P u b l i c S a f e t y 2, 5 0 7 $ 3 , 0 3 8 $ 2 , 9 2 8 $ 2 , 9 7 1 $ 3 , 0 8 8 $ 3 , 0 1 9 $ P u b l i c W o r k s 1, 1 1 8 1 , 0 0 6 1 , 0 7 6 1 , 0 6 2 1 , 2 2 9 1 , 0 4 7 C u l t u r e a n d r e c r e a t i o n 1, 1 4 5 6 3 0 6 5 3 7 0 7 7 1 2 6 8 0 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 19 2 - - - - - G e n e r a l g o v e r n m e n t 1, 4 1 6 1 , 4 2 8 1 , 4 8 2 1 , 5 5 6 1 , 5 6 9 1 , 6 3 3 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 2, 9 6 5 2 , 1 5 0 2 , 5 9 2 2 , 9 3 7 3 , 2 1 5 3 , 6 1 1 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s 2, 2 0 5 6 , 1 9 8 7 , 6 7 9 3 , 8 4 9 4 , 2 8 3 1 , 7 4 7 T o t a l g o v e r n m e n t a l a c t i v i t i e s p r o g r a m r e v e n u e s $1 1 , 5 4 8 $ 1 4 , 4 5 0 $ 1 6 , 4 1 0 $ 1 3 , 0 8 2 $ 1 4 , 0 9 6 $ 1 1 , 7 3 7 B u s i n e s s - t y p e a c t i v i t i e s : C h a r g e s f o r s e r v i c e s : W a s t e w a t e r 12 , 4 4 5 1 2 , 5 8 0 1 2 , 1 4 5 1 2 , 1 4 5 1 2 , 5 3 5 1 2 , 3 1 8 W a t e r 9, 6 7 7 9 , 1 6 4 8 , 6 0 2 9 , 0 1 2 8 , 2 4 0 8 , 1 9 5 S a n i t a t i o n 6, 5 3 1 7 , 1 1 1 7 , 1 5 4 7 , 1 3 3 7 , 2 0 4 7 , 8 5 3 H o u s i n g A u t h o r i t y 22 1 2 1 9 1 8 1 1 6 8 1 3 2 1 4 9 P a r k i n g 3, 6 3 6 4 , 0 1 1 4 , 0 4 5 3 , 9 3 6 4 , 7 0 4 4 , 6 7 3 A i r p o r t 18 0 2 1 3 2 2 0 2 6 4 2 3 4 2 5 8 S t o r m w a t e r - 1 0 4 5 9 2 5 9 7 6 2 2 6 1 6 C a b l e T e l e v i s i o n 29 8 6 7 3 7 0 8 7 1 8 7 2 6 8 1 4 (c o n t i n u e d ) CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N N E T A S S E T S La s t S i x F i s c a l Y e a r s (A c c r u a l b a s i s o f a c c o u n t i n g ) (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Y e a r 96 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : W a s t e w a t e r 1, 0 7 7 9 6 8 7 6 1 7 7 3 1 , 5 3 9 5 7 7 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : W a t e r 64 0 4 5 2 5 8 8 6 0 6 8 4 5 3 1 4 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S a n i t a t i o n - - - 4 6 - - C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : A i r p o r t - 1 1 6 2 8 3 1 , 1 2 5 1 , 2 3 1 1 , 5 8 0 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S t o r m w a t e r - 7 1 7 7 5 5 4 6 8 1 , 2 5 1 3 0 2 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : H o u s i n g A u t h o r i t y - - - - - 1 7 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : P a r k i n g - - - - - 8 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : H o u s i n g A u t h o r i t y 6, 2 9 1 6 , 9 5 0 7 , 0 1 2 7 , 4 1 4 7 , 1 6 5 6 , 2 8 1 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : W a t e r 1 3 1 - - - - - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : A i r p o r t 3 6 - - - - - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : S a n i t a t i o n 2 0 1 9 - 3 6 - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : W a s t e w a t e r - - - - 1 - T o t a l b u s i n e s s - t y p e a c t i v i t i e s p r o g r a m r e v e n u e s 41 , 3 6 4 4 3 , 2 8 7 4 3 , 0 4 6 4 4 , 4 0 8 4 6 , 4 3 5 4 3 , 9 5 5 T o t a l p r i m a r y g o v e r n m e n t r e v e n u e s 52 , 9 1 2 $ 5 7 , 7 3 7 $ 5 9 , 4 5 6 $ 5 7 , 4 9 0 $ 6 0 , 5 3 1 $ 5 5 , 6 9 2 $ Ne t ( E x p e n s e ) / R e v e n u e s G o v e r n m e n t a l a c t i v i t i e s (3 7 , 0 1 2 ) $ ( 3 5 , 5 8 6 ) $ ( 3 8 , 8 0 0 ) $ ( 4 4 , 3 4 9 ) $ ( 4 3 , 5 2 5 ) $ ( 4 8 , 7 5 4 ) $ B u s i n e s s - t y p e a c t i v i t i e s 6, 1 4 4 3 , 9 9 6 2 , 4 5 4 4 , 4 5 8 6 , 2 2 9 3 , 0 0 9 T o t a l p r i m a r y g o v e r n m e n t n e t e x p e n s e (3 0 , 8 6 8 ) $ ( 3 1 , 5 9 0 ) $ ( 3 6 , 3 4 6 ) $ ( 3 9 , 8 9 1 ) $ ( 3 7 , 2 9 6 ) $ ( 4 5 , 7 4 5 ) $ Ge n e r a l R e v e n u e s a n d O t h e r C h a n g e s i n N e t A s s e t s G o v e r n m e n t a l a c t i v i t i e s : G e n e r a l r e v e n u e s : P r o p e r t y t a x e s 32 , 2 5 7 $ 3 4 , 1 7 3 $ 3 5 , 3 2 7 $ 3 7 , 7 7 0 $ 4 1 , 4 9 2 $ 4 3 , 4 0 0 $ R o a d u s e t a x 5, 1 4 4 5 , 3 1 1 5 , 2 6 9 5 , 3 0 3 5 , 3 0 5 5 , 4 3 2 O t h e r t a x e s 1, 3 9 9 1 , 6 0 9 1 , 3 5 1 1 , 2 4 0 1 , 4 1 2 1 , 4 3 5 E a r n i n g s o n i n v e s t m e n t s 1, 2 0 7 1 , 0 5 6 1 , 5 7 6 2 , 6 7 8 4 , 0 4 5 3 , 9 3 2 M i s c e l l a n e o u s 3, 1 7 4 3 , 7 4 6 3 , 9 9 4 4 , 4 2 2 3 , 6 5 6 3 , 5 0 9 G a i n ( l o s s ) o n s a l e o f a s s e t s (1 , 7 2 6 ) 6 5 9 5 1 0 0 2 8 1 - T r a n s f e r s 1, 4 4 4 ( 1 , 8 4 0 ) 6 4 5 2 0 8 ( 5 , 3 2 1 ) 4 8 8 T o t a l g o v e r n m e n t a l a c t i v i t i e s 42 , 8 9 9 4 4 , 1 2 0 4 8 , 2 5 7 5 1 , 7 2 1 5 0 , 8 7 0 5 8 , 1 9 6 Bu s i n e s s - t y p e a c t i v i t i e s : G e n e r a l r e v e n u e s : E a r n i n g s o n i n v e s t m e n t s 1, 3 0 5 9 9 1 1 , 7 7 1 2 , 5 7 5 3 , 6 0 6 3 , 2 7 9 G a i n o n s a l e o f a s s e t s 31 5 1 , 0 0 9 3 0 4 1 8 5 5 9 1 1 , 2 6 0 M i s c e l l a n e o u s 99 4 3 3 5 4 1 8 3 9 1 3 4 3 4 5 4 T r a n s f e r s (1 , 4 4 4 ) 1 , 8 4 0 ( 6 4 5 ) ( 2 0 8 ) 5 , 3 2 1 ( 4 8 8 ) T o t a l b u s i n e s s - t y p e a c t i v i t i e s 1, 1 7 0 4 , 1 7 5 1 , 8 4 8 2 , 9 4 3 9 , 8 6 1 4 , 5 0 5 T o t a l p r i m a r y g o v e r n m e n t 44 , 0 6 9 $ 4 8 , 2 9 5 $ 5 0 , 1 0 5 $ 5 4 , 6 6 4 $ 6 0 , 7 3 1 $ 6 2 , 7 0 1 $ Ch a n g e i n N e t A s s e t s G o v e r n m e n t a l a c t i v i t e s 5, 8 8 7 $ 8 , 5 3 4 $ 9 , 4 5 7 $ 7 , 3 7 2 $ 7 , 3 4 5 $ 9 , 4 4 2 $ B u s i n e s s - t y p e a c t i v i t e s 7, 3 1 4 8 , 1 7 1 4 , 3 0 2 7 , 4 0 1 1 6 , 0 9 0 7 , 5 1 4 T o t a l p r i m a r y g o v e r n m e n t 13 , 2 0 1 $ 1 6 , 7 0 5 $ 1 3 , 7 5 9 $ 1 4 , 7 7 3 $ 2 3 , 4 3 5 $ 1 6 , 9 5 6 $ Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N N E T A S S E T S ( c o n t i n u e d ) La s t F i v e F i s c a l Y e a r s (A c c r u a l b a s i s o f a c c o u n t i n g ) (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) 97 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 Ge n e r a l F u n d R e s e r v e d 1, 0 9 4 $ 3 9 6 $ 3 6 2 $ 5 7 0 $ 5 6 8 $ 4 4 6 $ U n r e s e r v e d 13 , 0 1 2 1 4 , 3 0 1 1 5 , 5 2 5 1 6 , 5 5 1 1 8 , 5 2 8 1 4 , 4 8 8 To t a l g e n e r a l f u n d 14 , 1 0 6 $ 1 4 , 6 9 7 $ 1 5 , 8 8 7 $ 1 7 , 1 2 1 $ 1 9 , 0 9 6 $ 1 4 , 9 3 4 $ Al l o t h e r G o v e r n m e n t a l F u n d s R e s e r v e d 11 , 5 3 6 $ 1 , 6 7 7 $ 2 , 1 9 8 $ 1 , 5 9 2 $ 1 , 9 8 4 $ 3 , 1 0 7 $ D e s i g n a t e d f o r l o n g - t e r m d e b t 4 , 4 4 8 6 , 9 3 0 3 , 0 6 7 2 , 7 2 5 4 , 2 8 9 8 , 6 9 1 U n r e s e r v e d , r e p o r t e d i n : S p e c i a l r e v e n u e f u n d s 3 , 8 1 9 9 , 3 7 9 6 , 2 2 2 3 , 4 2 2 3 , 3 6 6 2 , 5 7 1 C a p t a l p r o j e c t s f u n d s 1 , 0 4 7 3 , 8 8 2 6 , 1 4 3 7 , 0 9 3 7 , 8 9 4 1 1 , 1 1 8 To t a l a l l o t h e r g o v e r n m e n t a l f u n d s 2 0 , 8 5 0 $ 2 1 , 8 6 8 $ 1 7 , 6 3 0 $ 1 4 , 8 3 2 $ 1 7 , 5 3 3 $ 2 5 , 4 8 7 $ (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A FU N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t S i x F i s c a l Y e a r s (M o d i f i e d a c c r u a l b a s i s o f a c c o u n t i n g ) 98 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 Re v e n u e s : P r o p e r t y t a x e s a n d a s s e s s m e n t s 3 1 , 9 6 6 $ 3 5 , 5 3 8 $ 3 6 , 6 7 7 $ 3 9 , 0 1 1 $ 4 2 , 9 0 5 $ 4 4 , 8 3 5 $ L i c e n s e s a n d p e r m i t s 96 1 1 , 3 6 1 1 , 2 5 5 1 , 2 7 9 1 , 4 0 4 1 , 2 7 0 I n t e r g o v e r n m e n t a l 12 , 1 9 3 1 2 , 0 5 8 1 5 , 5 4 6 1 4 , 2 6 0 1 3 , 4 5 5 1 2 , 7 6 4 C h a r g e s f o r s e r v i c e s 4, 6 7 4 3 , 2 4 0 3 , 3 0 1 2 , 2 2 7 2 , 4 2 3 2 , 2 2 8 U s e o f m o n e y a n d p r o p e r t y 99 7 1 , 0 0 2 1 , 3 5 4 2 , 2 0 3 3 , 3 7 8 3 , 2 0 6 M i s c e l l a n e o u s 2, 5 5 8 4 , 3 7 7 4 , 1 2 1 4 , 1 7 6 3 , 8 5 8 3 , 9 7 7 T o t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 5 3 , 3 4 9 $ 5 7 , 5 7 6 $ 6 2 , 2 5 4 $ 6 3 , 1 5 6 $ 6 7 , 4 2 3 $ 6 8 , 2 8 0 $ Ex p e n d i t u r e s C u r r e n t P u b l i c s a f e t y 13 , 1 1 5 $ 1 4 , 0 2 5 $ 1 4 , 6 0 1 $ 1 5 , 8 1 9 $ 1 6 , 4 1 2 $ 1 8 , 7 0 5 $ P u b l i c w o r k s 8, 1 4 9 9 , 1 5 6 9 , 6 9 8 1 0 , 3 5 1 1 2 , 4 5 2 1 2 , 1 0 8 C u l t u r e a n d r e c r e a t i o n 8, 0 6 1 9 , 3 9 2 9 , 1 8 3 1 0 , 1 2 2 1 0 , 2 6 1 1 0 , 7 0 3 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 3 , 7 1 5 3 , 4 8 6 6 , 3 7 5 4 , 6 9 8 3 , 4 4 5 4 , 4 3 7 G e n e r a l g o v e r n m e n t 5, 8 8 7 6 , 0 8 0 6 , 2 8 2 6 , 5 1 0 7 , 1 9 4 7 , 2 0 7 D e b t s e r v i c e P r i n c i p a l 4, 7 4 2 5 , 1 7 2 9 , 3 4 9 6 , 0 9 9 6 , 7 0 0 7 , 3 2 3 I n t e r e s t 3, 6 8 3 3 , 3 3 6 3 , 6 7 6 3 , 4 5 8 3 , 4 6 4 3 , 5 5 6 C a p i t a l p r o j e c t s 20 , 0 9 5 1 6 , 0 6 5 13 , 9 3 9 1 5 , 1 5 3 1 3 , 0 0 0 1 1 , 8 1 1 T o t a l e x p e n d i t u r e s 67 , 4 4 7 $ 6 6 , 7 1 2 $ 7 3 , 1 0 3 $ 7 2 , 2 1 0 $ 7 2 , 9 2 8 $ 7 5 , 8 5 0 $ E x c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s (1 4 , 0 9 8 ) $ ( 9 , 1 3 6 ) $ ( 1 0 , 8 4 9 ) $ ( 9 , 0 5 4 ) $ ( 5 , 5 0 5 ) $ ( 7 , 5 7 0 ) $ Ot h e r f i n a n c i n g s o u r c e s ( u s e s ) : I s s u a n c e o f l o n g - t e r m d e b t 10 , 6 0 0 $ 1 2 , 8 7 5 $ 7 , 0 2 0 $ 7 , 2 6 5 $ 8 , 8 7 0 $ 9 , 1 5 0 $ S a l e o f c a p i t a l a s s e t s - 3 8 4 4 0 6 1 0 9 4 7 0 1 1 1 I s s u a n c e o f n o t e p a y a b l e - - 2 1 1 - - - P r e m i u m ( d i s c o u n t ) o n i s s u a n c e o f b o n d s 9 3 ( 1 9 ) 4 3 2 9 - 1 6 P a y m e n t o f r e f u n d e d b o n d s (6 , 4 1 5 ) - - - - - T r a n s f e r s i n 15 , 1 7 2 1 4 , 6 1 4 1 5 , 7 7 6 2 1 , 6 2 7 2 1 , 5 5 2 2 5 , 4 1 3 T r a n s f e r s o u t (1 4 , 5 5 4 ) ( 1 6 , 7 3 3 ) ( 1 5 , 2 3 7 ) ( 2 1 , 5 4 0 ) ( 2 0 , 7 1 1 ) ( 2 3 , 3 2 8 ) T o t a l o t h e r f i n a n c i n g s o u r c e s ( u s e s ) 4 , 8 9 6 $ 1 1 , 1 2 1 $ 8 , 2 1 9 $ 7 , 4 9 0 $ 1 0 , 1 8 1 $ 1 1 , 3 6 2 $ N e t c h a n g e i n f u n d b a l a n c e s ( 9 , 2 0 2 ) $ 1 , 9 8 5 $ ( 2 , 6 3 0 ) $ ( 1 , 5 6 4 ) $ 4 , 6 7 6 $ 3 , 7 9 2 $ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 17 . 8 % 1 6 . 8 % 2 2 . 0 % 1 6 . 7 % 1 7 . 0 % 1 7 . 0 % (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N F U N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t S i x F i s c a l Y e a r s (m o d i f i e d a c c r u a l b a s i s o f a c c o u n t i n g ) 99 CITY OF IOWA CITY, IOWA GENERAL GOVERNMENT TAX REVENUES BY SOURCE Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Property Tax Road Use Tax Hotel/Motel Tax Total 1999 22,153 $ 4,575 $ 570 $ 27,298 $ 2000 24,271 4,928 554 29,753 2001 27,071 4,852 497 32,420 2002 28,623 5,077 646 34,346 2003 31,966 5,103 559 37,628 2004 34,958 5,311 580 40,849 2005 36,076 5,269 611 41,956 2006 38,336 5,303 674 44,313 2007 42,221 5,305 683 48,209 2008 44,101 5,432 734 50,267 100 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/ Exemp t Assessed Direct June 30 Estimated Actual Value 1 Property Value 2 Value Tax Rate 1999 2,597,827 $ 128,115 $2,469,712 $ 13.133 2000 2,699,944 136,493 2,563,451 13.851 2001 2,920,580 137,713 2,782,867 14.757 2002 2,975,254 152,991 2,822,263 14.850 2003 3,214,973 155,407 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 4,386,219 215,955 4,170,264 17.297 Sources: 1Johnson County Abstract Assessment 2City of Iowa City Assessor's Office - Annual Report Notes: Property is reassessed i n the odd numbere d years to make adjustments to all property values, according to curren t marke t values. As per the Code of Iowa, all real an d tangible personal property subject to taxation shall be value d at its actual value and, except as otherwise provided, shall be reassessed a t 100% of its actual value, an d the value so assesse d shall be take n an d societies, low-rent housing and associations for war veterans. Each must apply for property tax exempt status with the City Assessor, who determines if the property qualifies under state guidelines. Exempt property is assessed each year like other taxable property. Property owned by governmental entities is not taxable and is not included in “Exempt Property". considered as the assessed value and taxable value of the property upon which the levy shall be made. Taxable property includes real property, buildings an d structures, industrial plan t an d fixtures, commercia l equipmen t assessed as real property, agriculture, residentail on agriculture and utilities distribution property. Exemp t property includes all property tha t is owne d by religious an d educational institutions, charitable an d benevolen t 101 CI T Y O F I O W A C I T Y , I O W A PR O P E R T Y T A X R A T E S - D I R E C T A N D O V E R L A P P I N G G O V E R N M E N T S La s t T e n F i s c a l Y e a r s (p e r $ 1 , 0 0 0 a s s e s s e d v a l u a t i o n ) To t a l Io w a C i t y K i r k w o o d D i r e c t & Fi s c a l O p e r a t i n g D e b t S e r v i c e T o t a l C i t y J o h n s o n S c h o o l C o m m u n i t y S t a t e o f O v e r l a p p i n g Ye a r Mi l l a g e Mi l l a g e Mi l l a g e Co u n t y 1 Di s t r i c t Co l l e g e Io w a Ra t e s 19 9 9 1 1 . 2 6 5 1 . 8 6 8 1 3 . 1 3 3 5 . 7 4 7 1 2 . 0 7 5 0 . 5 6 7 0 . 0 0 5 3 1 . 5 2 7 20 0 0 1 1 . 5 5 1 2 . 3 0 0 1 3 . 8 5 1 5 . 9 4 7 1 1 . 6 9 6 0 . 6 1 3 0 . 0 0 5 3 2 . 1 1 2 20 0 1 1 1 . 7 6 7 2 . 9 9 0 1 4 . 7 5 7 5 . 9 0 1 1 1 . 8 3 3 0 . 6 0 7 0 . 0 0 5 3 3 . 1 0 4 20 0 2 1 1 . 9 0 5 2 . 9 4 5 1 4 . 8 5 0 5 . 8 0 2 1 1 . 5 4 0 0 . 6 0 7 0 . 0 0 5 3 2 . 8 0 3 20 0 3 1 2 . 6 5 2 4 . 1 6 1 1 6 . 8 1 3 6 . 0 6 1 1 2 . 2 1 0 0 . 6 6 6 0 . 0 0 4 3 5 . 7 5 4 20 0 4 1 3 . 0 2 6 4 . 5 7 0 1 7 . 5 9 6 6 . 1 0 2 1 2 . 8 6 5 0 . 6 7 9 0 . 0 0 4 3 7 . 2 4 7 20 0 5 1 3 . 3 6 0 3 . 9 5 4 1 7 . 3 1 4 6 . 1 6 6 1 2 . 8 7 5 0 . 6 6 8 0 . 0 0 4 3 7 . 0 2 7 20 0 6 1 3 . 5 8 0 4 . 1 4 9 1 7 . 7 2 9 6 . 3 9 1 1 3 . 5 8 2 0 . 6 4 9 0 . 0 0 4 3 8 . 3 5 5 20 0 7 1 3 . 4 2 3 3 . 8 7 9 1 7 . 3 0 2 6 . 4 1 5 1 3 . 6 3 2 0 . 8 7 2 0 . 0 0 4 3 8 . 2 2 5 20 0 8 1 3 . 5 1 1 3 . 7 8 6 1 7 . 2 9 7 6 . 8 2 3 1 3 . 8 5 1 0 . 8 5 5 0 . 0 0 4 3 8 . 8 3 0 So u r c e : " T a x L e v i e s f o r J o h n s o n C o u n t y , I o w a , " c o m p i l e d b y t h e J o h n s o n C o u n t y A u d i t o r . O n w e b J o h n s o n - c o u n t y . c o m D e p t s / A u d i t o r / R e a l E s t a t e No t e : 1 In c l u d e s J o h n s o n C o u n t y , C i t y o f I o w a C i t y A s s e s s o r , a n d A g r i c u l t u r a l E x t e n s i o n l e v i e s . Ov e r l a p p i n g R a t e s Ci t y o f I o w a C i t y 102 Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections Collections 1999 21,735 $ 21,842 $ 100.5 22 $ 21,864 $ 100.6 % 2000 23,945 23,989 100.2 5 23,994 100.2 2001 26,089 25,684 98.4 31 25,715 98.6 2002 27,920 28,423 101.8 5 28,428 101.8 2003 31,975 31,863 99.6 16 31,879 99.7 2004 34,073 34,009 99.8 23 34,032 99.9 2005 34,403 34,814 101.2 15 34,829 101.2 2006 36,460 36,654 100.5 44 36,698 100.7 2007 39,094 38,947 99.6 13 38,960 99.7 2008 39,973 39,768 99.5 70 39,838 99.7 Source: Certificate of City Taxes and Johnson County Treasurer's Office CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Percent of Levy Collected Total as a Percent of Levy 103 19 9 9 2 0 0 8 % o f T o t a l % o f T o t a l Ta x a b l e A s s e s s e d T a x a b l e A s s e s s e d Te n l a r g e s t t a x p a y e r s 1 Ty p e o f B u s i n e s s Va l u a t i o n Ra n k Va l u a t i o n Va l u a t i o n Ra n k Va l u a t i o n Mi d - A m e r i c a n E n e r gy C o m p an y 2 Pu b l i c G a s a n d E l e c t r i c U t i l i t y 4 8 , 4 3 5 $ 1 1 . 9 6 % 44 , 4 9 6 $ 1 1 . 0 1 % AC T I n c . ( f o r m e r l y A m e r i c a n C o l l e g e T e s t i n g P r o g r a m ) E d u c a t i o n a l T e s t i n g S e r v i c e 1 7 , 4 3 0 6 0 . 7 1 3 4 , 5 3 5 2 0 . 7 9 Ja m e A C l a r k A p a r t m e n t s 21 , 2 6 1 4 0 . 8 6 2 8 , 5 0 6 3 0 . 6 5 So u t h g a t e D e v e l o p m e n t C o m p a n y R e a l E s t a t e D e v e l o p e r 2 1 , 6 3 8 3 0 . 8 8 1 9 , 2 6 7 4 0 . 4 4 NC S P e a r s o n I n f o r m a t i o n S e r v i c e s 1 6 , 6 5 4 7 0 . 6 7 1 6 , 2 2 7 5 0 . 3 7 Pl a z a T o w e r s L L C C o n d o / H o t e l / C o m m e r c i a l s p a c e 1 3 , 3 6 2 8 0 . 5 4 1 5 , 3 0 0 6 0 . 3 5 ME H S M L C ( S y c a m o r e M a l l ) S h o p p i n g C e n t e r - - 0 . 0 0 1 5 , 0 1 1 7 0 . 3 4 Ru s s e l l G e r d i n - - 0 . 0 0 1 4 , 6 1 1 8 0 . 3 3 Un i t e d N a t u r a l F o o d s W h o l e s a l e D i s t r i b u t i o n C o m p a n y - - 0 . 0 0 1 3 , 0 5 9 9 0 . 3 0 Pr o c t o r & G a m b l e L L C M a n u f a c t u r i n g C o m p a n y 2 4 , 1 3 1 2 0 . 9 8 1 1 , 9 8 5 1 0 0 . 2 7 He i t m a n P r o p e r t i e s S h o p p i n g C e n t e r 2 0 , 8 1 7 5 0 . 8 4 - - - Un i t e d T e c h n o l o g i e s A u t o m o t i v e A u t o m o t i v e P r o d u c t s M a n u f a c t u r i n g 1 2 , 8 2 4 1 0 0 . 5 2 - - - Gi l l e t t e - C a n a d a ( O r a l - B ) M a n u f a c t u r i n g C o m p a n y 1 2 , 9 4 3 9 0 . 5 2 - - - To t a l 20 9 , 4 9 5 $ 8 . 4 8 % 2 1 2 , 9 9 7 $ 4 . 8 6 % So u r c e s : 1 Ci t y o f I o w a C i t y A s s e s s o r ' s O f f i c e - 2 0 0 7 A n n u a l R e p o r t 2 St a t e D e p a r t m e n t o f R e v e n u e PR I N C I P A L T A X P A Y E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) CI T Y O F I O W A C I T Y , I O W A 104 CI T Y O F I O W A C I T Y , I O W A PR I N C I P A L W A T E R S Y S T E M C U S T O M E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o 19 9 9 Cu s t o m e r N a m e Ch a r g e s Ra n k Pe r c e n t a g e Ch a r g e s Ra n k Pe r c e n t a g e Pr o c t o r & G a m b l e $2 6 9 , 5 6 6 1 3 . 7 8 % $ 6 3 0 , 9 4 9 1 7 . 9 1 % Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r 1 4 7 , 7 9 1 2 2 . 0 8 9 8 , 2 2 9 2 1 . 2 3 Me r c y H o s p i t a l 33 , 3 3 0 7 0 . 4 7 7 2 , 7 1 0 3 0 . 9 1 Ru s P r o p e r t y M a n a g e m e n t / L a k e s i d e 2 9 , 5 2 1 9 0 . 4 1 6 7 , 0 5 4 4 0 . 8 4 Ca m p u s A p a r t m e n t s - - N/ A 6 5 , 3 1 8 5 0 . 8 2 Ro b e r t ' s D a i r y 51 , 5 7 9 4 0 . 7 2 6 3 , 5 0 3 6 0 . 8 0 AC T - N/ A 5 0 , 9 2 3 7 0 . 6 4 Un i v e r s i t y o f I o w a / M a y f l o w e r A p a r t m e n t s 5 1 , 6 1 7 5 0 . 7 2 4 2 , 7 0 9 8 0 . 5 4 Le a r C o r p o r a t i o n - - N/ A 3 8 , 5 3 1 9 0 . 4 8 Sh e r a t o n I n n / H o l i d a y I n n 23 , 3 9 9 10 0. 3 3 3 4 , 9 7 0 10 0. 4 4 Po l l u t i o n C o n t r o l 29 , 9 1 0 8 0. 4 2 - - - Un i t e d T e c h n o l o g y 55 , 4 0 4 3 0. 7 8 - - - Re l e a s e I n t e r n a t i o n a l 36 , 9 8 2 6 0. 5 2 - - - $7 2 9 , 0 9 9 1 0 . 2 3 % $ 1 , 1 6 4 , 8 9 6 1 4 . 6 0 % To t a l W a t e r S y s t e m C h a r g e s N / A $7 , 9 7 6 , 5 3 6 So u r c e s : Ci t y o f I o w a C i t y R e v e n u e D e p a r t m e n t Ma y 1 9 9 9 W a t e r R e v e n u e B o n d T r a n s c r i p t O f f i c a l S t a t e m e n t No t e s : To t a l W a t e r c h a r g e s n o t a v a l i b a l e f o r 1 9 9 9 20 0 8 105 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGE S Last Ten Fiscal Years Fiscal Water Sales Water System Year Cubic Feet Sold Charges 1999 N/A N/A 2000 261,072,632 8,414,310 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 Sources: City of Iowa City Revenue Department Notes: N/A Not available 106 CI T Y O F I O W A C I T Y , I O W A PR I N C I P A L S E W E R S Y S T E M C U S T O M E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o Cu s t o m e r N a m e Ch a r g e s Ra n k Pe r c e n t a g e Ch a r g e s Ra n k Pe r c e n t a g e Un i v e r s i t y o f I o w a $2 , 8 0 2 , 1 4 0 1 2 5 . 5 0 % $2 , 0 1 7 , 4 4 0 1 1 6 . 5 1 % Pr o c t o r & G a m b l e 66 7 , 7 5 9 2 6 . 1 0 1 , 1 3 1 , 3 1 5 2 9 . 2 6 Ro b e r t ' s D a i r y 15 7 , 0 8 0 3 1 . 4 0 1 6 0 , 4 4 5 3 1 . 3 1 Me r c y H o s p i t a l 75 , 1 9 1 5 0 . 7 0 1 1 8 , 3 3 3 4 0 . 9 7 Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r - - - 11 0 , 3 0 6 5 0 . 9 0 Ru s P r o p e r t y M a n a g e m e n t / L a k e s i d e 6 8 , 4 0 4 7 0 . 6 0 1 1 0 , 1 2 9 6 0 . 9 0 Io w a C i t y L a n d f i l l D i v i s i o n 4 7 , 1 7 3 1 0 0 . 4 0 1 0 6 , 4 4 5 7 0 . 8 7 Ca m p u s A p a r t m e n t s - - - 85 , 1 9 8 8 0 . 7 0 Un i v e r s i t y o f I o w a / M a y f l o w e r A p a r t m e n t s 6 9 , 1 4 2 6 0 . 6 0 7 1 , 6 1 1 9 0 . 5 9 Un i t e d T e c h A u t o 81 , 5 2 8 4 0 . 7 0 - - - Ho l i d a y I n n 50 , 9 7 4 8 0 . 5 0 - - - Re l e a s e I n t e r n a t i o n a l 48 , 1 2 1 9 0 . 4 0 - - - Ma r k I V A p a r t m e n t s - - - 6 6 , 2 2 9 10 0. 5 4 $4 , 0 6 7 , 5 1 2 3 6 . 9 0 % $ 3 , 9 7 7 , 4 5 1 3 2 . 5 4 % To t a l S e w e r S y s t e m C h a r g e s N / A $1 2 , 2 2 1 , 7 6 9 So u r c e s : Ci t y o f I o w a C i t y R e v e n u e D e p a r t m e n t Fe b r u a r y 1 9 9 9 S e w e r R e v e n u e B o n d T r a n s c r i p t O f f i c i a l S t a t e m e n t No t e s : To t a l s e w e r c h a r g e s n o t a v a i l a b l e f o r 1 9 9 9 20 0 8 19 9 9 107 CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGE S Last Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 1999 N/A N/A 2000 315,199,203 11,084,369 2001 299,381,463 11,111,313 2002 292,323,306 11,431,949 2003 297,084,229 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 Sources: City of Iowa City Revenue Department Notes: N/A Not available 108 Ge n e r a l C a p i t a l G e n e r a l T o t a l P e r c e n t a g e Fi s c a l O b l i g a t i o n L o a n O b l i g a t i o n R e v e n u e P r i m a r y o f P e r s o n a l P e r Ye a r Bo n d s No t e Bo n d s Bo n d s Go v e r n m e n t In c o m e 1 Ca p i t a 1 19 9 9 2 7 , 2 0 3 , 0 2 3 $ 1 3 0 , 0 0 0 $ 1 8 , 8 3 1 , 9 7 7 $ 7 8 , 9 9 0 , 0 0 0 $ 1 2 5 , 1 5 5 , 0 0 0 $ 3 . 5 9 % 2 , 0 8 1 $ 20 0 0 2 4 , 3 6 3 , 3 2 9 6 5 , 0 0 0 1 6 , 7 6 1 , 6 7 1 8 9 , 3 7 5 , 0 0 0 1 3 0 , 5 6 5 , 0 0 0 3 . 4 2 % 2 , 1 7 1 20 0 1 4 6 , 6 9 7 , 3 4 3 1 4 , 8 6 7 , 6 5 7 1 1 1 , 2 4 5 , 0 0 0 1 7 2 , 8 1 0 , 0 0 0 4 . 3 9 % 2 , 7 7 7 20 0 2 7 2 , 1 9 8 , 6 5 2 1 3 , 0 6 1 , 3 4 8 1 4 1 , 4 1 0 , 0 0 0 2 2 6 , 6 7 0 , 0 0 0 5 . 5 6 % 3 , 6 4 3 20 0 3 7 1 , 6 4 1 , 1 6 9 1 1 , 3 5 8 , 8 3 1 1 2 0 , 3 1 0 , 0 0 0 2 0 3 , 3 1 0 , 0 0 0 4 . 8 4 % 3 , 2 5 9 20 0 4 7 9 , 3 4 4 , 6 0 0 9 , 6 4 0 , 4 0 0 1 1 5 , 7 1 0 , 0 0 0 2 0 4 , 6 9 5 , 0 0 0 4 . 5 5 % 3 , 2 8 1 20 0 5 7 7 , 0 1 5 , 3 7 9 8 , 2 7 4 , 6 2 2 1 1 0 , 9 3 0 , 0 0 0 1 9 6 , 2 2 0 , 0 0 1 4 . 2 1 % 3 , 1 4 6 20 0 6 7 8 , 1 8 1 , 1 5 5 6 , 8 7 8 , 8 4 5 1 0 5 , 9 1 5 , 0 0 0 1 9 0 , 9 7 5 , 0 0 0 3 . 8 5 % 3 , 0 3 7 20 0 7 8 0 , 3 5 0 , 6 3 0 5 , 4 8 9 , 3 7 0 1 0 0 , 7 6 0 , 0 0 0 1 8 6 , 6 0 0 , 0 0 0 3 . 5 2 % 2 , 7 8 2 20 0 8 8 2 , 1 7 7 , 3 9 5 4 , 9 1 2 , 6 0 5 9 5 , 3 4 5 , 0 0 0 1 8 2 , 4 3 5 , 0 0 0 3 . 2 7 % 2 , 7 2 0 No t e s : De t a i l s r e g a r d i n g t h e c i t y ' s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e n o t e s t o t h e f i n a n c i a l s t a t e m e n t s 1 P o p u l a t i o n a n d p e r s o n a l i n c o m e i n f o r m a t i o n c a n b e f o u n d o n p a g e 1 2 0 . Go v e r n m e n t a l A c t i v i t i e s B u s i n e s s - T y p e A c t i v i t i e s CI T Y O F I O W A C I T Y , I O W A RA T I O S O F O U T S T A N D I N G D E B T B Y T Y P E La s t T e n F i s c a l Y e a r s 109 CI T Y O F I O W A C I T Y , I O W A RA T I O S O F G E N E R A L O B L I G A T I O N B O N D E D D E B T 1 TO A S S E S S E D V A L U E A N D N E T B O N D E D D E B T P E R C A P I T A La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s , e x c e p t p e r c a p i t a ) P r o p e r t y D e b t N e t G e n e r a l R a t i o o f N e t N e t B o n d e d Fi s c a l A s s e s s e d G r o s s P a y a b l e f r o m D e b t S e r v i c e O b l i g a t i o n B o n d e d D e b t t o D e b t Ye a r Va l u e 2 Bo n d e d D e b t Pr o p r i e t a r y Fu n d B a l a n c e Bo n d e d D e b t As s e s s e d V a l u e Pe r C a p i t a 3 19 9 9 2 , 5 9 7 , 8 2 7 $ 4 6 , 1 6 5 $ 1 8 , 8 3 2 $ 3 4 7 $ 2 6 , 9 8 6 $ 1 0 . 3 9 : 1 0 0 0 4 4 9 $ 20 0 0 2 , 6 9 9 , 9 4 4 4 1 , 1 9 0 1 6 , 7 6 2 1 9 2 2 4 , 2 3 6 8 . 9 8 : 1 0 0 0 4 0 3 20 0 1 2 , 9 2 0 , 5 8 0 6 1 , 5 6 5 1 4 , 8 6 8 4 9 4 4 6 , 2 0 3 1 5 . 8 2 : 1 0 0 0 7 4 3 20 0 2 2 , 9 7 5 , 2 5 4 8 5 , 2 6 0 1 3 , 0 6 1 4 6 4 7 1 , 7 3 5 2 4 . 1 1 : 1 0 0 0 1 , 1 5 3 20 0 3 3 , 2 1 4 , 9 7 3 8 3 , 0 0 0 1 1 , 3 5 9 4 , 4 4 8 6 7 , 1 9 3 2 0 . 9 0 : 1 0 0 0 1 , 0 7 7 20 0 4 3 , 3 2 2 , 0 0 1 8 5 , 0 8 5 9 , 6 4 0 6 , 9 3 0 6 8 , 5 1 5 2 0 . 6 2 : 1 0 0 0 1 , 0 9 8 20 0 5 3 , 8 3 4 , 4 3 5 8 5 , 2 9 0 8 , 2 7 5 3 , 0 6 7 7 3 , 9 4 8 1 9 . 2 9 : 1 0 0 0 1 , 1 8 5 20 0 6 3 , 9 5 3 , 7 8 1 8 5 , 0 6 0 6 , 8 7 9 2 , 7 2 5 7 5 , 4 5 6 1 9 . 0 8 : 1 0 0 0 1 , 2 0 0 20 0 7 4 , 2 8 0 , 8 3 4 8 5 , 8 4 0 5 , 4 8 9 4 , 2 8 9 7 6 , 0 6 2 1 7 . 7 7 : 1 0 0 0 1 , 1 3 4 20 0 8 4 , 3 8 6 , 2 1 9 8 7 , 0 9 0 4 , 9 1 3 8 , 6 9 1 7 3 , 4 8 6 1 6 . 7 5 : 1 0 0 0 1 , 0 9 6 No t e s : 1 Ge n e r a l O b l i g a t i o n b o n d s . 2 Ob t a i n e d f r o m t h e C i t y o f I o w a C i t y A s s e s s o r ' s O f f i c e . 3 Po p u l a t i o n d a t a c a n b e f o u n d o n p a g e 1 2 0 . 110 CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES 1 Last Ten Fiscal Years (amounts expressed in thousands) Total General Fiscal Year Governmental Ratio of Debt Ended Total Expenditures Service to General June 30 Principal Interest Debt Service and Transfers Expenditures 1999 2,452 $ 1,038 $ 3,490 $ 45,851 $ .08 : 1.00 2000 2,918 1,360 4,278 52,727 .08 : 1.00 2001 3,541 1,763 5,304 53,898 .10 : 1.00 2002 3,599 2,136 5,735 53,462 .11 : 1.00 2003 2 4,742 3,683 8,425 82,001 .10 : 1.00 2004 5,172 3,336 8,508 83,445 .10 : 1.00 2005 9,349 3,676 13,025 88,342 .15 : 1.00 2006 6,099 3,458 9,557 93,360 .10 : 1.00 2007 6,700 3,464 10,164 93,639 .11 : 1.00 2008 7,323 3,556 10,879 99,178 .11 : 1.00 Notes: 1General Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. 111 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2008 (amounts expressed in thousands, except per capita) Amount Total General % Applicable Applicable Long-Term to the to the Name of Bonded Debt City of City of Governmental Unit Outstanding Iowa City Iowa City Per Capita City of Iowa City 87,090 $ 100.00% 87,090 $ 1,299 $ Iowa City Community School District 29,205 60.05% 17,537 262 Total 116,295 $ 104,627 $ 1,561 $ Per capita assessed value 65,405 $ Source: Johnson County Auditor's Office each overlapping government. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of 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. 112 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 De b t L i m i t 1 1 8 , 6 7 6 $ 1 2 1 , 1 7 8 $ 1 2 9 , 8 9 1 $ 1 3 4 , 9 9 7 $ 1 4 6 , 0 2 9 $ 1 4 8 , 7 6 3 $ 1 6 0 , 7 4 9 $ 1 8 6 , 6 3 0 $ 1 9 1 , 7 2 2 $ 1 9 7 , 6 8 9 $ To t a l n e t d e b t a p p l i c a b l e t o l i m i t 4 6 , 1 6 5 4 1 , 1 9 0 6 1 , 5 6 5 8 5 , 2 6 0 8 3 , 0 0 0 8 5 , 0 8 5 8 5 , 2 9 0 8 5 , 0 6 0 8 5 , 8 4 0 8 7 , 0 9 0 Le g a l d e b t m a r g i n 7 2 , 5 1 1 $ 7 9 , 9 8 8 $ 6 8 , 3 2 6 $ 4 9 , 7 3 7 $ 6 3 , 0 2 9 $ 6 3 , 6 7 8 $ 7 5 , 4 5 9 $ 1 0 1 , 5 7 0 $ 1 0 5 , 8 8 2 $ 1 1 0 , 5 9 9 $ To t a l n e t d e b t a p p l i c a b l e t o t h e l i m i t a s a p e r c e n t a g e o f d e b t l i m i t 3 8 . 9 0 % 3 3 . 9 9 % 4 7 . 4 0 % 6 3 . 1 6 % 5 6 . 8 4 % 5 7 . 2 0 % 5 3 . 0 6 % 4 5 . 5 8 % 4 4 . 7 7 % 4 4 . 0 5 % To t a l A s s e s s e d V a l u a t i o n De b t L i m i t - 5 % o f T o t a l A s s e s s e d V a l u a t i o n 1 9 7 , 6 8 9 , 0 4 9 Le s s : A m o u n t o f D e b t A p p l i c a b l e t o D e b t L i m i t 8 7 , 0 9 0 , 0 0 0 Le g a l D e b t M a r g i n No t e : U n d e r I o w a c o d e , t h e c i t y ' s o u t s t a n d i n g g e n e r a l o b l i g a t i o n d e b t s h o u l d n o t e x c e e d 5 p e r c e n t o f t o t a l a s s e s s e d p r o p e r t y v a l u e . 11 0 , 5 9 9 , 0 4 9 $ Fi s c a l Y e a r Le g a l D e b t M a r g i n C a l c u l a t i o n f o r F i s c a l Y e a r 2 0 0 8 3, 9 5 3 , 7 8 0 , 9 8 7 $ CI T Y O F I O W A C I T Y , I O W A LE G A L D E B T M A R G I N I N F O R M A T I O N La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) 113 Fi s c a l Ye a r P r i n c i p a l I n t e r e s t T o t a l Pr o p e r t y T a x Re v e n u e Ta x I n c r e m e n t Fi n a n c i n g Wa t e r Re v e n u e Pr i n c i p a l Ou t s t a n d i n g a t Be g i n n i n g o f Fi s c a l Y e a r 20 0 8 7 , 9 0 0 , 0 0 0 $ 3 , 7 5 6 , 5 1 1 $ 1 1 , 6 5 6 , 5 1 1 $ 1 0 , 2 0 9 , 7 0 8 $ 6 6 9 , 3 5 3 $ 7 7 7 , 4 5 1 $ 8 5 , 8 4 0 , 0 0 0 $ 20 0 9 8 , 1 1 0 , 0 0 0 3 , 4 4 2 , 3 2 3 1 1 , 5 5 2 , 3 2 3 1 0 , 1 2 7 , 3 1 2 6 7 1 , 7 5 3 7 5 3 , 2 5 8 7 7 , 9 4 0 , 0 0 0 20 1 0 8 , 2 8 5 , 0 0 0 3 , 1 1 7 , 9 5 0 1 1 , 4 0 2 , 9 5 0 9 , 9 8 2 , 1 0 9 6 6 8 , 5 5 3 7 5 2 , 2 8 8 6 9 , 8 3 0 , 0 0 0 20 1 1 8 , 5 7 0 , 0 0 0 2 , 7 7 9 , 0 2 0 1 1 , 3 4 9 , 0 2 0 9 , 9 3 4 , 0 5 8 6 6 9 , 9 5 3 7 4 5 , 0 0 9 6 1 , 5 4 5 , 0 0 0 20 1 2 8 , 8 8 0 , 0 0 0 2 , 4 2 2 , 8 3 3 1 1 , 3 0 2 , 8 3 3 9 , 8 9 1 , 7 5 1 6 6 8 , 9 7 8 7 4 2 , 1 0 4 5 2 , 9 7 5 , 0 0 0 20 1 3 7 , 8 9 5 , 0 0 0 2 , 0 4 6 , 4 3 8 9 , 9 4 1 , 4 3 8 8 , 5 3 6 , 8 8 9 6 6 6 , 4 0 3 7 3 8 , 1 4 7 4 4 , 0 9 5 , 0 0 0 20 1 4 7 , 6 0 0 , 0 0 0 1 , 7 0 4 , 4 9 3 9 , 3 0 4 , 4 9 3 7 , 9 2 7 , 8 2 6 6 6 8 , 1 1 5 7 0 8 , 5 5 2 3 6 , 2 0 0 , 0 0 0 20 1 5 7 , 3 0 0 , 0 0 0 1 , 3 6 9 , 0 8 0 8 , 6 6 9 , 0 8 0 7 , 2 9 7 , 5 1 5 6 6 8 , 8 7 8 7 0 2 , 6 8 7 2 8 , 6 0 0 , 0 0 0 20 1 6 6 , 3 0 0 , 0 0 0 1 , 0 4 0 , 2 5 0 7 , 3 4 0 , 2 5 0 6 , 3 4 9 , 4 3 5 6 7 3 , 6 9 0 3 1 7 , 1 2 5 2 1 , 3 0 0 , 0 0 0 20 1 7 4 , 6 0 0 , 0 0 0 7 4 7 , 6 6 8 5 , 3 4 7 , 6 6 8 4 , 3 6 4 , 5 1 5 6 7 7 , 0 9 0 3 0 6 , 0 6 3 1 5 , 0 0 0 , 0 0 0 20 1 8 3 , 4 0 5 , 0 0 0 5 3 1 , 0 4 6 3 , 9 3 6 , 0 4 6 3 , 2 5 7 , 1 1 3 6 7 8 , 9 3 4 - 1 0 , 4 0 0 , 0 0 0 20 1 9 1 , 8 0 5 , 0 0 0 3 5 6 , 4 3 4 2, 1 6 1 , 4 3 4 1 , 4 8 2 , 0 0 0 6 7 9 , 4 3 4 - 6 , 9 9 5 , 0 0 0 20 2 0 1 , 9 0 0 , 0 0 0 2 6 6 , 1 8 4 2 , 1 6 6 , 1 8 4 1 , 4 8 3 , 0 0 0 6 8 3 , 1 8 4 - 5 , 1 9 0 , 0 0 0 20 2 1 2 , 0 0 5 , 0 0 0 1 7 0 , 4 9 0 2 , 1 7 5 , 4 9 0 1 , 4 8 5 , 7 5 0 6 8 9 , 7 4 0 - 3 , 2 9 0 , 0 0 0 20 2 2 6 2 5 , 0 0 0 6 8 , 7 6 5 6 9 3 , 7 6 5 - 6 9 3 , 7 6 5 - 1 , 2 8 5 , 0 0 0 20 2 3 6 6 0 , 0 0 0 3 5 , 6 4 0 6 9 5 , 6 4 0 - 6 9 5 , 6 4 0 - 6 6 0 , 0 0 0 To t a l 8 5 , 8 4 0 , 0 0 0 $ 2 3 , 8 5 5 , 1 2 5 $ 1 0 9 , 6 9 5 , 1 2 5 $ 9 2 , 3 2 8 , 9 8 1 $ 1 0 , 8 2 3 , 4 6 3 $ 6 , 5 4 2 , 6 8 4 $ Pa y m e n t s Fu n d i n g S o u r c e ( s ) CI T Y O F I O W A C I T Y , I O W A GE N E R A L O B L I G A T I O N D E B T A N N U A L M A T U R I T Y S C H E D U L E 114 Fiscal Year Net Revenue Annual Debt Service 2 Ended Available for Ratio of June 30 Revenue Expenses 1 Debt Service Principal Interest Total Coverage Parking Revenue 3 1999 3,653$ 1,713 $ 1,940 $ 415 $ 168$ 583$ 3.33 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 Wastewater Treatment Revenue 4 1999 11,362$ 2,987 $ 8,375 $ 2,065 $ 3,519$ 5,584$ 1.50 2000 11,872 3,259 8,613 2,160 3,691 5,851 1.47 2001 12,824 3,248 9,576 2,505 3,589 6,094 1.57 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 Water Revenue 5 1999 8,571$ 3,295 $ 5,276 $ -$ -$ -$ 0.00 2000 9,626 3,384 6,242 - 299 299 20.88 2001 10,629 3,410 7,219 140 445 585 12.34 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 Note: 1Excludes depreciation and interest. 2Includes principal and interest of revenue bonds only. 3Parkin g Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. 4Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 5Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service " is required to be at least 1.10. CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) 115 Fi s c a l Ye a r P r i n c i p a l I n t e r e s t T o t a l S e w e r R e v e n u e Pa r k i n g Re v e n u e W a t e r R e v e n u e Pr i n c i p a l Ou t s t a n d i n g a t Be g i n n i n g o f Fi s c a l Y e a r 20 0 8 5 , 4 1 5 , 0 0 0 $ 4 , 9 0 5 , 8 9 3 $ 1 0 , 3 2 0 , 8 9 3 $ 7 , 1 7 6 , 0 5 2 $ 9 6 0 , 5 9 4 $ 2 , 1 8 4 , 2 4 6 $ 1 0 0 , 7 6 0 , 0 0 0 $ 20 0 9 5 , 6 2 5 , 0 0 0 4 , 6 6 8 , 7 6 5 1 0 , 2 9 3 , 7 6 5 7 , 1 5 6 , 9 4 9 9 5 4 , 2 9 8 2 , 1 8 2 , 5 1 9 9 5 , 3 4 5 , 0 0 0 20 1 0 5 , 8 7 5 , 0 0 0 4 , 4 1 3 , 2 1 6 1 0 , 2 8 8 , 2 1 6 7 , 1 5 3 , 0 8 3 9 5 1 , 9 7 3 2 , 1 8 3 , 1 6 0 8 9 , 7 2 0 , 0 0 0 20 1 1 6 , 1 9 5 , 0 0 0 4 , 1 3 9 , 9 3 9 1 0 , 3 3 4 , 9 3 9 7 , 2 0 5 , 1 0 9 9 4 8 , 4 7 3 2 , 1 8 1 , 3 5 8 8 3 , 8 4 5 , 0 0 0 20 1 2 6 , 5 0 5 , 0 0 0 3 , 8 5 1 , 0 5 2 1 0 , 3 5 6 , 0 5 2 7 , 2 2 9 , 7 7 2 9 4 3 , 7 9 8 2 , 1 8 2 , 4 8 3 7 7 , 6 5 0 , 0 0 0 20 1 3 6 , 6 4 0 , 0 0 0 3 , 5 4 8 , 2 9 4 1 0 , 1 8 8 , 2 9 4 7 , 0 5 9 , 4 8 7 9 4 2 , 8 0 1 2 , 1 8 6 , 0 0 7 7 1 , 1 4 5 , 0 0 0 20 1 4 4 , 9 2 5 , 0 0 0 3 , 2 7 0 , 4 6 1 8 , 1 9 5 , 4 6 1 5 , 0 6 8 , 7 6 8 9 4 0 , 3 3 5 2 , 1 8 6 , 3 5 9 6 4 , 5 0 5 , 0 0 0 20 1 5 5 , 1 8 5 , 0 0 0 3 , 0 1 6 , 2 9 9 8 , 2 0 1 , 2 9 9 5 , 0 7 6 , 7 4 4 9 3 6 , 4 0 1 2 , 1 8 8 , 1 5 5 5 9 , 5 8 0 , 0 0 0 20 1 6 5 , 4 7 0 , 0 0 0 2 , 7 4 6 , 7 8 6 8 , 2 1 6 , 7 8 6 5 , 0 9 4 , 8 9 0 9 3 5 , 8 5 1 2 , 1 8 6 , 0 4 5 5 4 , 3 9 5 , 0 0 0 20 1 7 5 , 7 4 5 , 0 0 0 2 , 4 6 0 , 8 2 4 8 , 2 0 5 , 8 2 4 5 , 0 8 7 , 7 3 4 9 3 3 , 4 6 8 2 , 1 8 4 , 6 2 3 4 8 , 9 2 5 , 0 0 0 20 1 8 6 , 0 6 5 , 0 0 0 2 , 1 5 6 , 5 2 6 8 , 2 2 1 , 5 2 6 5 , 0 9 8 , 8 9 3 9 3 4 , 1 0 0 2 , 1 8 8 , 5 3 4 4 3 , 1 8 0 , 0 0 0 20 1 9 6 , 3 6 5 , 0 0 0 1 , 8 3 3 , 1 9 3 8 , 1 9 8 , 1 9 3 5 , 0 8 2 , 5 5 8 9 2 7 , 8 1 5 2 , 1 8 7 , 8 2 0 3 7 , 1 1 5 , 0 0 0 20 2 0 6 , 7 3 5 , 0 0 0 1 , 4 9 0 , 2 0 9 8 , 2 2 5 , 2 0 9 5 , 1 0 8 , 2 8 8 9 2 9 , 4 6 5 2 , 1 8 7 , 4 5 6 3 0 , 7 5 0 , 0 0 0 20 2 1 6 , 5 6 0 , 0 0 0 1, 1 3 8 , 0 7 1 7 , 6 9 8 , 0 7 1 4 , 5 8 2 , 4 0 0 9 2 8 , 4 0 0 2 , 1 8 7 , 2 7 1 2 4 , 0 1 5 , 0 0 0 20 2 2 5 , 3 1 0 , 0 0 0 8 1 6 , 7 6 8 6 , 1 2 6 , 7 6 8 3 , 0 1 5 , 5 4 4 9 2 4 , 6 0 0 2 , 1 8 6 , 6 2 4 1 7 , 4 5 5 , 0 0 0 20 2 3 4 , 2 1 5 , 0 0 0 5 5 6 , 4 3 2 4 , 7 7 1 , 4 3 2 1 , 6 6 2 , 9 7 5 9 2 3 , 2 5 0 2 , 1 8 5 , 2 0 7 1 2 , 1 4 5 , 0 0 0 20 2 4 3 , 0 0 0 , 0 0 0 3 5 8 , 3 8 1 3 , 3 5 8 , 3 8 1 8 6 6 , 2 3 8 9 2 4 , 0 5 0 1 , 5 6 8 , 0 9 4 7 , 9 3 0 , 0 0 0 20 2 5 3 , 1 7 5 , 0 0 0 1 8 6 , 2 0 0 3 , 3 6 1 , 2 0 0 8 6 8 , 4 7 5 9 2 1 , 8 5 0 1 , 5 7 0 , 8 7 5 4 , 9 3 0 , 0 0 0 20 2 6 1 , 7 5 5 , 0 0 0 4 8 , 8 3 1 1 , 8 0 3 , 8 3 1 8 6 8 , 2 3 8 - 9 3 5 , 5 9 4 1 , 7 5 5 , 0 0 0 To t a l 1 0 0 , 7 6 0 , 0 0 0 $ 4 5 , 6 0 6 , 1 4 0 $ 1 4 6 , 3 6 6 , 1 4 0 $ 9 0 , 4 6 2 , 1 9 7 $ 1 6 , 8 6 1 , 5 2 2 $ 3 9 , 0 4 2 , 4 3 0 $ Pa y m e n t s Fu n d i n g S o u r c e ( s ) CI T Y O F I O W A C I T Y , I O W A RE V E N U E D E B T A N N U A L M A T U R I T Y S C H E D U L E 116 117 Fiscal Year Principal Interest Total 2008 355,000 $ 605,594 $ 960,594 $ 2009 370,000 584,298 954,298 2010 390,000 561,973 951,973 2011 410,000 538,473 948,473 2012 430,000 513,798 943,798 2013 455,000 487,801 942,801 2014 480,000 460,335 940,335 2015 505,000 431,401 936,401 2016 535,000 400,851 935,851 2017 565,000 368,468 933,468 2018 600,000 334,100 934,100 2019 630,000 297,815 927,815 2020 670,000 259,465 929,465 2021 710,000 218,400 928,400 2022 750,000 174,600 924,600 2023 795,000 128,250 923,250 2024 845,000 79,050 924,050 2025 895,000 26,850 921,850 Total 10,390,000 $ 6,471,522 $ 16,861,522 $ Fiscal Year Principal Interest Total 2008 4,105,000 $ 3,071,052 $ 7,176,052 $ 2009 4,260,000 2,896,949 7,156,949 2010 4,445,000 2,708,083 7,153,083 2011 4,700,000 2,505,109 7,205,109 2012 4,940,000 2,289,772 7,229,772 2013 4,995,000 2,064,487 7,059,487 2014 3,200,000 1,868,768 5,068,768 2015 3,375,000 1,701,744 5,076,744 2016 3,570,000 1,524,890 5,094,890 2017 3,750,000 1,337,734 5,087,734 2018 3,960,000 1,138,893 5,098,893 2019 4,155,000 927,558 5,082,558 2020 4,405,000 703,288 5,108,288 2021 4,105,000 477,400 4,582,400 2022 2,725,000 290,544 3,015,544 2023 1,490,000 172,975 1,662,975 2024 755,000 111,238 866,238 2025 800,000 68,475 868,475 2026 845,000 23,238 868,238 Total 64,580,000 $ 25,882,197 $ 90,462,197 $ (continued) Outstanding Sewer Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Parking 118 Fiscal Year Principal Interest Total 2008 955,000 $ 1,229,246 $ 2,184,246 $ 2009 995,000 1,187,519 2,182,519 2010 1,040,000 1,143,160 2,183,160 2011 1,085,000 1,096,358 2,181,358 2012 1,135,000 1,047,483 2,182,483 2013 1,190,000 996,007 2,186,007 2014 1,245,000 941,359 2,186,359 2015 1,305,000 883,155 2,188,155 2016 1,365,000 821,045 2,186,045 2017 1,430,000 754,623 2,184,623 2018 1,505,000 683,534 2,188,534 2019 1,580,000 607,820 2,187,820 2020 1,660,000 527,456 2,187,456 2021 1,745,000 442,271 2,187,271 2022 1,835,000 351,624 2,186,624 2023 1,930,000 255,207 2,185,207 2024 1,400,000 168,094 1,568,094 2025 1,480,000 90,875 1,570,875 2026 910,000 25,594 935,594 Total 25,790,000 $ 13,252,430 $ 39,042,430 $ Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Water 119 Pe r C a p i t a Ca l e n d a r P e r s o n a l P e r s o n a l S c h o o l U n e m p l o y m e n t R e t a i l Ye a r Po p u l a t i o n In c o m e 1 In c o m e 1 En r o l l m e n t 2 Ra t e 3 Sa l e s 4 19 9 9 6 0 , 1 4 8 3 , 4 8 6 , 3 2 4 $ 2 6 , 7 3 7 $ 1 1 , 4 7 9 2 . 5 7 3 3 , 4 0 3 , 3 7 7 $ 20 0 0 6 0 , 1 4 8 3 , 8 1 5 , 3 0 0 2 8 , 9 0 7 1 1 , 5 4 3 2 . 0 7 5 6 , 0 5 4 , 3 3 1 20 0 1 6 2 , 2 2 0 3 , 9 3 4 , 9 7 1 2 9 , 3 8 8 1 1 , 6 0 3 2 . 4 7 8 0 , 5 9 1 , 4 2 6 20 0 2 6 2 , 2 2 0 4 , 0 7 9 , 1 5 8 3 0 , 2 2 4 1 1 , 6 9 7 3 . 2 7 6 6 , 9 0 1 , 8 9 2 20 0 3 6 2 , 3 8 0 4 , 1 9 7 , 0 2 4 3 0 , 8 3 1 1 1 , 7 0 0 3 . 5 7 7 6 , 6 9 3 , 4 4 0 20 0 4 6 2 , 3 8 0 4 , 5 0 2 , 1 8 7 3 2 , 7 2 9 1 1 , 8 8 5 4 . 0 8 5 4 , 1 5 6 , 4 4 2 20 0 5 6 2 , 3 8 0 4 , 6 6 2 , 0 0 0 3 2 , 7 0 6 1 1 , 8 6 6 2 . 9 8 7 8 , 0 0 9 , 1 7 1 20 0 6 6 2 , 8 8 7 4 , 9 5 7 , 0 0 0 3 4 , 2 7 2 1 1 , 9 8 8 2 . 4 9 0 1 , 4 8 1 , 0 6 6 20 0 7 6 7 , 0 6 2 5 , 3 0 3 , 0 0 0 3 6 , 0 6 9 1 2 , 8 2 4 2 . 9 9 3 4 , 9 7 1 , 4 2 8 20 0 8 5 67 , 0 6 2 5 , 5 7 5 , 9 9 5 3 7 , 2 3 5 1 2 , 9 1 1 3 . 1 9 5 8 , 5 0 9 , 7 2 9 So u r c e s a n d N o t e s : 1 Pe r s o n a l I n c o m e a n d P e r C a p i t a P e r s o n a l I n c o m e b a s e d o n m e t r o p o l i t a n I o w a C i t y / C o r a l v i l l e a n d b a s e d o n f i g u r e s f r o m B u r e a u o f Ec o n o m i c A n a l y s i s . P e r s o n a l I n c o m e e x p r e s s e d i n t h o u s a n d s . 2 Io w a C i t y C o m m u n i t y S c h o o l D i s t r i c t a n d l o c a l p r i v a t e s c h o o l s 3 Io w a W o r k f o r c e D e v e l o p m e n t C e n t e r 4 Io w a R e t a i l S a l e s & U s e R e p o r t , I o w a D e p a r t m e n t o f R e v e n u e a n d F i n a n c e . F i s c a l y e a r e n d i n g M a r c h 3 1 . 5 Pe r s o n a l I n c o m e a n d P e r C a p i t a l P e r s o n a l I n c o m e f o r 2 0 0 8 n o t a v a i l a b e . A m o u n t s p r o j e c t e d b a s e d o n a v e r a g e i n c r e a s e o v e r p r e v i o u s 9 y e a r s . DE M O G R A P H I C A N D E C O N O M I C S T A T I S T I C S CI T Y O F I O W A C I T Y , I O W A La s t T e n C a l e n d a r Y e a r s 120 CI T Y O F I O W A C I T Y , I O W A PR I N C I P A L E M P L O Y E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o 19 9 9 Em p l o y e r s Em p l o y e e s Ra n k Em p l o y e e s Ra n k Pe r c e n t a g e Un i v e r s i t y o f I o w a 24 , 5 4 3 1 2 8 , 2 3 6 1 3 1 . 3 % Io w a C i t y C o m m u n i t y S c h o o l D i s t r i c t 1, 2 4 2 2 1 , 7 0 0 2 1 . 9 AC T I n c . ( f o r m e r l y A m e r i c a n C o l l e g e T e s t i n g P r o g r a m ) 86 2 7 1 , 6 4 6 3 1 . 8 Me r c y H o s p i t a l 1, 1 5 0 4 1 , 3 8 3 4 1 . 5 Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r 1, 2 2 1 3 1 , 3 5 1 5 1 . 5 Hy - V e e 86 8 6 1 , 1 6 6 6 1 . 3 NC S P e a r s o n 93 4 5 9 8 2 7 1 . 1 Le a r C o r p o r a t i o n 84 0 8 7 5 0 8 0 . 8 Sy s t e m s U n l i m i t e d - - 6 8 1 9 0. 8 Pr o c t o r & G a m b l e - - 6 6 4 1 0 0. 7 Gi l l e t t e C a n a d a ( O r a l B L a b o r a t o r i e s ) 79 2 9 - - - Ci t y o f I o w a C i t y 60 2 1 0 - - - 33 , 0 5 4 3 8 , 5 5 9 4 2 . 7 % To t a l E m p l o y e e s 90 , 3 0 0 So u r c e s : Ci t y o f I o w a C i t y E c o n o m i c D e v e l o p m e n t D i v i s i o n C o m m u n i t y P r o f i l e ( i n c l u d i n g f u l l a n d p a r t - t i m e e m p l o y e e s ) . No t e : To t a l n u m b e r o f e m p l o y e e s i s n o t a v a i l a b l e f o r 1 9 9 9 , p e r c e n t a g e o f t o t a l c i t y e m p l o y m e n t b y e m p l o y e r i s n o t p r e s e n t e d . 20 0 8 121 1999 2000 2001 2002 2003 2004 Public Safety Police 90.75 96.25 96.25 97.25 97.25 97.25 Fire 52 52 52 58 58 58 Animal Shelter 5.44 5.5 5.5 5.5 6 6 Inspection Services 14.13 14.13 14.13 14.13 14.13 14.13 Public Works Public Works Admin 2 2 3 2 2 2 Engineering 11 10.6 11.6 13.6 13.6 13.6 Traffic Engineering 3.75 4.15 4.15 4.15 5.65 5.65 Streets 23 23.5 23.5 23.5 22 22 Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 Recreation 13.17 14.67 15.17 15.17 15.17 15.17 Parks 12 13 13 13 13 13 Forestry 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 CBD Maintenance 3 3 3 3 3 3 Library 38 40.25 40.25 41.25 41.25 43.25 Senior Center 5.5 6 6 6 5.81 5.81 Community and Economic Developme n 8.45 8.55 8.55 9.05 8.35 9.45 General Government City Council 7 7 7 7 7 7 City Manager 3 3 3 3 3 3 City Clerk 4.5 5 4.5 4.5 4 4 City Attorney 6 6 6 6.6 6.6 6.6 Personnel 4 4 4 4 4 4 Finance 28.62 27.71 27.36 28.61 28.61 28.61 Government Buildings 4.08 4.08 4.97 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 2.5 2.5 Transit 48.75 48.25 48.25 48.5 48.5 48.5 Special Revenue Employee Benefits 0.38 0.45 0.45 0.4 0.34 0.34 CIP / Roads - 7 6 7 7 7 Community Development 4.75 4.75 4.75 4.75 5.45 5.35 JCCOG 5.8 6.1 6.1 6.1 6.1 6.1 Library Development 1.5 1.5 1.5 1.5 1.5 1.5 Internal Service Funds Information Technology 5.5 7.95 7.5 7.5 7.5 7.5 Equipment 9.5 9.5 9.5 10.25 11.25 11.26 Central Services 1.7 2.1 2.25 0.75 0.75 0.75 Risk Management 1.59 1.56 1.46 1.26 1.33 1.33 Business-Type Activities Parking 30.5 30.5 37 37 31.5 31.5 Wastewater Treatment 30.3 25.3 25.3 26.3 26.3 27.3 Water 25.95 26.2 26.2 28.2 30.7 31.7 Sanitation 31 31.85 32.35 32.35 32.35 32.35 Airport 1.5 1.75 2 2 2 2 Cable television 4.75 5.25 5.25 5.25 6.19 6.19 Stormwater - - - - - - Housing Authority 11.75 10.75 12.5 12.5 12.5 12.5 Total 565.11 581.65 591.79 606.38 605.64 610.65 Source: City's Financial Plans. CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-Time Equivalent Employees as of June 30 122 2005 2006 2007 2008 94.25 94.25 96.25 96.25 56 57 57 57 6 6 6 6 13.88 14.88 14.88 15.38 2 2 2 2 11.6 11.6 11.6 11.35 5.65 4.15 4.15 4.15 22 23.5 23.5 23.5 2 2 2 2 15.17 15.17 15.42 15.42 12 13 13 13 3 3 3 3 3 3 3 3 3 3 3 3 42.63 42.63 42.89 43.14 6.31 6.31 6.31 6.31 8.45 8.45 8.45 8.95 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6.6 6.6 4 4 4 4 26.61 26.75 26.75 26.5 4.96 4.96 4.96 4.96 0.5 0.5 0.5 0.25 2.5 2.5 2.5 2.5 50.5 50.5 50.5 54.75 0.34 0.39 0.39 0.29 3 2 2 1 4.35 4.35 4.35 3.98 6.1 6.6 6.6 6.6 0.8 1 1 1 8 11.75 12 12.3 11.25 11.26 11.26 11.26 0.75 0.75 0.75 0.75 1.32 1.38 1.38 1.73 32.75 32.75 32.75 32.75 27.3 25.5 25.5 25.5 31.7 32.5 32 32.75 34.35 33.85 33.85 34.85 2 1.6 1.6 1.6 6.19 6.19 6.19 6.19 - 0.5 1 2 12.75 13.25 13.25 13.25 599.56 605.37 608.13 614.81 Full-Time Equivalent Employees as of June 30 123 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 Pu b l i c S a f e t y P o l i c e 1 P h y s i c a l a r r e s t s 7, 8 3 5 7 , 8 3 5 7 , 3 3 9 8 , 9 2 9 8 , 0 1 6 7 , 2 8 8 7 , 5 2 8 6 , 8 6 1 5 , 9 4 8 5 , 8 3 8 T r a f f i c V i o l a t i o n s 5 , 3 5 5 8 , 0 6 1 8 , 0 4 7 7 , 6 3 9 7 , 4 2 8 8 , 5 1 5 7 , 4 2 8 8 , 2 0 7 6 , 0 9 1 5 , 5 7 1 F i r e 2 N u m b e r o f c a l l s a n s w e r e d 3 , 7 7 2 3 , 7 6 8 3 , 5 7 0 3 , 5 1 9 3 , 5 4 6 3 , 5 1 8 3 , 5 9 6 3 , 6 7 9 3 , 7 0 2 3 , 8 1 5 I n s p e c t i o n s c o n d u c t e d 1 , 0 8 1 9 2 6 1 , 0 7 9 9 8 9 9 3 6 9 7 5 1 , 0 8 3 1 , 2 1 9 1 , 2 7 3 1 , 6 9 1 Pa r k i n g P a r k i n g V i o l a t i o n s 3 N/ A N / A N / A N / A 1 8 6 , 6 7 4 1 5 5 , 3 3 8 1 4 5 , 0 3 3 1 3 9 , 3 3 8 1 6 6 , 1 8 7 1 4 7 , 6 7 3 Wa s t e w a t e r T r e a t m e n t D a i l y a v e r a g e t r e a t m e n t i n g a l l o n s 4 5, 3 4 0 , 0 0 0 4 , 5 0 0 , 0 0 0 5 , 7 1 0 , 0 0 0 5 , 1 1 0 , 0 0 0 4 , 5 3 0 , 0 0 0 4 , 9 6 0 , 0 0 0 4 , 8 7 0 , 0 0 0 4 , 5 8 0 , 0 0 0 9 , 4 3 0 , 0 0 0 1 2 , 8 1 0 , 0 0 0 M a x i m u m d a i l y c a p a c i t y o f p l a n t i n g a l l o n s 3 5 , 0 0 0 , 0 0 0 3 5 , 0 0 0 , 0 0 0 3 5 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 1 , 0 0 0 , 0 0 0 N u m b e r o f s e w e r s y s t e m c u s t o m e r s 1 8 , 7 9 0 1 9 , 1 3 6 1 9 , 4 8 0 2 0 , 1 0 6 2 0 , 7 0 8 2 1 , 1 6 5 2 1 , 5 5 2 2 2 , 0 4 6 2 2 , 4 8 1 2 2 , 9 0 9 Wa t e r D a i l y a v e r a g e c o n s u m p t i o n i n g a l l o n s 6 , 1 2 1 , 0 0 0 5 , 8 9 0 , 0 0 0 5 , 7 1 7 , 0 0 0 6 , 0 0 0 , 0 0 0 6 , 0 3 4 , 0 0 0 5 , 7 4 2 , 0 0 0 5 , 4 4 8 , 5 0 0 5 , 6 8 0 , 6 0 0 5 , 5 1 6 , 2 3 8 5 , 4 7 5 , 1 2 2 M a x i m u m d a i l y c a p a c i t y o f p l a n t i n g a l l o n s 1 0 , 5 0 0 , 0 0 0 1 0 , 5 0 0 , 0 0 0 1 0 , 5 0 0 , 0 0 0 1 0 , 5 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 Wa t e r S y s t e m C u s t o m e r s b y C l a s s i f i c a t i o n R e s i d e n t i a l 18 , 7 9 0 1 9 , 2 1 1 1 9 , 6 0 0 2 0 , 3 0 8 2 0 , 9 9 2 2 1 , 5 2 7 2 1 , 9 7 2 2 2 , 5 2 9 2 2 , 9 7 3 2 1 , 4 5 4 C o m m e r c i a l 1, 2 7 5 1 , 2 8 9 1 , 3 2 5 1 , 3 4 1 1 , 3 5 8 1 , 3 7 7 1 , 4 0 0 1 , 4 0 8 1 , 4 4 8 1 , 3 7 8 I n d u s t r i a l 11 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 3 1 3 O t h e r 11 9 1 2 4 1 2 4 1 2 4 1 2 7 1 2 5 1 2 9 1 3 4 1 3 7 1 3 9 T o t a l C u s t o m e r s 2 0 , 1 9 5 2 0 , 6 3 5 2 1 , 0 6 1 2 1 , 7 8 5 2 2 , 4 8 9 2 3 , 0 4 2 2 3 , 5 1 4 2 4 , 0 8 4 2 4 , 5 7 1 2 2 , 9 8 4 Sa n i t a t i o n N u m b e r o f C u s t o m e r s 1 3 , 2 7 4 1 3 , 4 5 7 1 3 , 5 5 5 1 3 , 6 6 8 1 3 , 8 0 6 1 3 , 9 8 3 1 4 , 1 5 8 1 4 , 3 7 1 1 4 , 5 5 6 1 4 , 5 7 4 T o n s 7, 8 7 3 7 , 8 6 9 7 , 9 0 5 8 , 1 3 8 8 , 0 6 2 8 , 7 1 6 8 , 6 6 7 8 , 4 6 3 8 , 7 2 2 8 8 3 4 L a n d f i l l T o n n a g e 81 , 7 0 7 8 4 , 7 0 4 9 7 , 2 0 8 1 0 3 , 4 0 4 1 0 3 , 5 8 5 1 0 8 , 1 5 5 1 1 3 , 3 5 6 1 1 1 , 1 2 4 1 3 5 , 3 1 5 1 3 2 , 7 6 0 So u r c e s : Va r i o u s c i t y d i v i s i o n s . No t e s : 1 N u m b e r s a r e b a s e d o n a c a l e n d a r y e a r a n d 2 0 0 8 f i g u r e s a r e c o m p i l e d t h r o u g h 1 1 / 1 4 / 0 7 . 2 Nu m b e r s a r e b a s e d o n a c a l e n d a r y e a r a n d 2 0 0 8 f i g u r e s a r e c o m p i l e d t h r o u g h 1 1 / 2 3 / 0 7 f o r i n s p e c t i o n a n d 1 1 / 1 9 / 0 8 f o r c a l l s . 3 I n f o r m a t i o n o n t h e n u m b e r o f p a r k i n g v i o l a t i o n s n o t a v a i l a b l e f o r y e a r s p r i o r t o F Y 0 3 . 4 FY 0 7 A N D F Y 0 8 n u m b e r s a r e b a s e d o n b o t h t h e N o r t h a n d S o u t h W a s t e w a t e r P l a n t s . CI T Y O F I O W A C I T Y , I O W A OP E R A T I N G I N D I C A T O R S B Y F U N C T I O N La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 124 125 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 Pu b l i c S a f e t y P o l i c e S t a t i o n s 1 1 1 1 1 1 1 1 1 1 P a t r o l u n i t s 1 6 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 F i r e S t a t i o n s 3 3 3 3 3 3 3 3 3 3 F i r e a p p a r a t u s 8 8 8 8 8 8 8 8 8 9 Pu b l i c W o r k s S t r e e t s M i l e s 2 4 4 2 4 6 2 4 9 2 5 1 2 5 6 2 5 9 2 6 2 2 6 2 2 6 8 2 6 9 S t r e e t L i g h t s 2 , 6 8 2 2 , 7 1 7 2 , 8 6 3 2 , 9 2 0 2 , 9 1 9 3 , 3 5 2 3 , 3 5 7 3 , 3 5 7 3 , 3 5 7 3 , 3 5 7 Cu l t u r e a n d R e c r e a t i o n L i b r a r y 1 1 1 1 1 1 1 1 1 1 C e m e t e r y 1 1 1 1 1 1 1 1 1 1 A c r e a g e 3 7 3 7 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 P a r k s 46 5 0 5 0 5 0 5 0 6 1 6 1 6 1 6 1 6 1 A c r e a g e 1 , 0 0 8 1 , 3 2 2 1 , 3 2 2 1 , 3 2 2 1 , 3 2 2 1 , 4 0 0 1 , 4 0 0 1 , 4 0 0 1 , 6 0 0 1 , 6 0 3 R e c r e a t i o n R e c r e a t i o n c e n t e r 2 2 2 2 2 2 2 2 2 2 S w i m m i n g p o o l s 3 3 3 3 3 3 3 3 3 3 B a l l d i a m o n d s 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 3 1 T e n n i s c o u r t s 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 S o c c e r f i e l d s 2 5 2 5 2 5 2 5 2 5 2 5 2 5 2 5 2 5 2 5 (c o n t i n u e d ) CI T Y O F I O W A C I T Y , I O W A CA P I T A L A S S E T S B Y F U N C T I O N La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 126 Pa r k i n g F a c i l i t i e s 3 3 4 4 4 4 4 5 5 5 S p a c e s 1 , 9 7 5 1 , 9 7 5 2 , 5 3 7 2 , 5 3 7 2 , 5 3 7 2 , 5 3 7 2 , 5 3 7 3 , 1 3 7 3 , 1 0 0 3 , 0 8 5 Wa s t e w a t e r T r e a t m e n t M i l e s o f s a n i t a r y s e w e r 2 4 0 2 6 0 2 6 3 2 6 6 2 6 9 2 7 4 2 7 7 2 8 0 2 8 6 2 8 8 M i l e s o f s t o r m s e w e r N / A N / A 9 1 9 4 9 8 1 0 2 1 0 5 1 1 0 1 1 7 1 1 8 N u m b e r o f t r e a t m e n t p l a n t s 2 2 2 2 2 2 2 2 2 2 N u m b e r o f s e r v i c e c o n n e c t o r s 2 0 , 1 9 5 2 0 , 6 3 5 2 1 , 0 6 1 2 1 , 7 8 5 2 2 , 5 1 4 2 3 , 0 7 7 2 3 , 5 5 8 2 4 , 1 1 3 2 4 , 9 0 3 2 5 , 1 0 4 Wa t e r M i l e s o f w a t e r m a i n s 2 3 9 2 4 4 2 5 2 2 6 0 2 6 5 2 6 9 2 7 2 2 7 7 2 8 3 2 8 4 N u m b e r o f c i t y o w n e d f i r e h y d r a n t s 1 , 9 3 5 2 , 0 2 9 2 , 1 0 9 2 , 1 8 2 2 , 2 4 3 2 , 3 4 0 2 , 4 4 8 2 , 4 7 4 2 , 5 6 9 2 , 5 7 5 Sa n i t a t i o n L a n d f i l l s 1 1 1 1 1 1 1 1 1 1 A c r e a g e 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 3 9 5 So u r c e s : Va r i o u s c i t y d i v i s i o n s . No t e : Nu m b e r o f m i l e s o f s t o r m s e w e r n o t t r a c k e d i n p r i o r y e a r s . CI T Y O F I O W A C I T Y , I O W A CA P I T A L A S S E T S B Y F U N C T I O N ( c o n t i n u e d ) La s t T e n F i s c a l Y e a r s 127 128