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FY2013 Annual Financial ReportCity of Iowa City, Iowa Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013 On the cover               Ͳ      Ͳ  COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2013 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2013 Page INTRODUCTORY SECTION Table of contents ................................................................................................................................ 1 Letter of transmittal ............................................................................................................................ 3 Certificate of Achievement for Excellence in Financial Reporting ................................................... 13 City organizational chart .................................................................................................................... 14 City officials....................................................................................................................................... 15 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ......................................................................................... 17 MANAGEMENT’S DISCUSSION AND ANALYSIS .................................................................... 21 BASIC FINANCIAL STATEMENTS Government-wide financial statements Statement of net position ............................................................................................................. 34 Statement of activities .................................................................................................................. 36 Fund financial statements Balance sheet – governmental funds ............................................................................................ 38 Reconciliation of the balance sheet of the governmental funds to the statement of net position 40 Statement of revenues, expenditures, and changes in fund balances – governmental funds ....... 42 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities ..................................................................... 44 Statement of net position – proprietary funds .............................................................................. 46 Statement of revenues, expenses, and changes in fund net position – proprietary funds ............ 48 Statement of cash flows – proprietary funds ................................................................................ 50 Statement of fiduciary assets and liabilities ................................................................................. 52 Notes to financial statements .......................................................................................................... 53 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule – budget and actual – all governmental funds and enterprise funds – budgetary basis……………………………………………………………………….... 98 Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 100 Note to required supplementary information – budgetary reporting…………………………….. 101 Note to required supplementary information – schedule of funding progress for health and dental plans…………………….…………………………………………………………….………….. 102 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet – nonmajor governmental funds ............................................................ 104 Combining statement of revenues, expenditures, and changes in fund balances – nonmajor governmental funds ...................................................................................................................... 105 Combining statement of net position – nonmajor enterprise funds ................................................ 108 Combining statement of revenues, expenses, and changes in fund net position – nonmajor enterprise funds ............................................................................................................................ 109 Combining statement of cash flows – nonmajor enterprise funds .................................................. 110 Combining statement of net position – internal service funds ........................................................ 112 Combining statement of revenues, expenses, and changes in fund net position – internal service funds ............................................................................................................................................. 113 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2013 Page COMBINING AND INDIVIDUAL FUND STATEMENTS (continued) Combining statement of cash flows – internal service funds .......................................................... 114 Statement of changes in assets and liabilities – agency funds ......................................................... 116 STATISTICAL SECTION (UNAUDITED) Net position by component ................................................................................................................. 119 Changes in net position ...................................................................................................................... 120 Fund balances – governmental funds ................................................................................................. 122 Changes in fund balances – governmental funds ............................................................................... 123 General government tax revenues by source ...................................................................................... 124 Assessed and taxable value of property .............................................................................................. 125 Property tax rates – direct and overlapping governments .................................................................. 126 Property tax budgets and collections .................................................................................................. 127 Principal taxpayers ............................................................................................................................. 128 Principal water system customers ...................................................................................................... 130 Sales history and total water charges .................................................................................................. 131 Principal sewer system customers ...................................................................................................... 132 Sales history and total sewer charges ................................................................................................. 133 Ratios of outstanding debt by type ..................................................................................................... 134 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............. 135 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures ..................................................................................................................................... 136 Computation of direct and overlapping debt ...................................................................................... 137 Legal debt margin information ........................................................................................................... 138 General obligation debt annual maturity schedule ............................................................................. 139 Schedule of revenue bond coverage ................................................................................................... 140 Revenue debt annual maturity schedule ............................................................................................. 141 Revenue debt annual maturity by funding source .............................................................................. 142 Demographic and economic statistics ................................................................................................ 144 Principal employers ............................................................................................................................ 145 Full-time equivalent city government employees by function ........................................................... 146 Operating indicators by function ........................................................................................................ 148 Capital assets by function ................................................................................................................... 150 COMPLIANCE SECTION Independent auditor’s report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards ............................................................................................................................. 153 Independent auditor’s report on compliance for each major federal program and report on internal control over compliance required by OMB Circular A-133 ............................................................... 155 Schedule of expenditures of federal awards ....................................................................................... 157 Notes to the schedule of expenditures of federal awards ................................................................... 162 Schedule of findings and questioned costs ......................................................................................... 163 Summary schedule of prior federal audit findings ............................................................................. 167 2 December 19, 2013 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, 2013 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 implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions effective with the June 30, 2011 financial statements. Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. The classifications include: nonspendable amounts that are not in spendable form or the City is legally or contractually required to be maintained intact; restricted amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation; committed amounts can only be used for specific purposes imposed by formal action of the government’s highest level of decision-making authority; assigned amounts 3 are intended to be used for specific purposes; and the unassigned fund balance is the residual classification for the General Fund. 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 Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. While, the financial statements are the responsibility of the City, the responsibility of the auditor is to express an opinion on the City’s financial statements based on their audit. The goal of the independent audit is to provide reasonable assurance that the City’s financial statements for the fiscal year ended, June 30, 2013 are free of material misstatement. The audit is conducted in accordance with generally accepted auditing standards and involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement preparation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Iowa City’s financial statements for the fiscal year ended, June 30, 2013, are fairly presented in conformity with GAAP. The independent auditors’ report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. As a recipient of federal financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to these federal programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management and the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State, Local Governments and Non-Profit Organizations. Information related to this single audit, including the schedules of federal financial assistance, findings and questioned costs, and independent auditors’ reports on the internal accounting and administrative controls and compliance with applicable laws and regulations are included in the compliance section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves a four-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, with three members nominated from specific districts and the remaining four members nominated at large. The Council elects the Mayor from its own members for a two-year term. The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will 4 obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City’s operating departments and supervises the administration of the City’s personnel system. The Manager supervises 543 full-time and 58 part-time permanent municipal employees and 524 temporary employees, including a police force of 82 sworn personnel and a fire department of 63 firefighters. The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's Office administers the City government's documentation, City licenses and permits, and provides information from the Municipal Code and City Ordinances to the public and other City departments. The City Clerk’s Office is also responsible for distributing and maintaining accurate records of all City Council proceedings. The Clerk supervises 3 full-time employees and 1 temporary employee. The City Attorney is also appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the City Attorney's Office, including 4 Assistant City Attorneys and 2 other full-time employees. In addition, the City Attorney acts as Chief Legal Counsel to the City Council, City Manager, the various City departments and staff, and most City commissions, committees and boards. The City provides a full range of services including police and fire protection, construction and maintenance of roads, streets and infrastructure, inspection and licensing functions, a municipal airport, library, recreational activities, and cultural events. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate storm and sanitary sewer systems. The City operates a municipal off-street and on-street parking system in the downtown area. The City also operates a transit system. The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than 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 balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. Appropriations that are not spent lapse at the end of the year. 5 Information Useful in Assessing the Government’s Economic Condition The City's economic strength is based on the educational sector, medical services, and diversified manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the City’s largest employers with over 30,800 employees. The University of Iowa had a record high enrollment in 2012 and fall semester 2013 enrollment remained steady with 21,970 undergraduate students. The academic and research missions of the University, along with the health care services provided at its hospitals and clinics, have a tremendously positive economic impact on the area. The City also has a significant number of national and international businesses, including Fortune 500 companies. The City continues to see sustained production in our major local industries; ACT Inc., NCS Pearson, and Proctor & Gamble. While established firms continue to prosper and expand in Iowa City, opportunities are available for growth of new businesses. Continued economic development efforts with the Iowa City and Coralville Chambers of Commerce, private interests, the University of Iowa, other surrounding communities, and participation as a member of the Iowa City Area Development Group, have produced positive results with the retention and expansion of businesses. In addition, Iowa’s Creative Corridor is a seven-county alliance surrounding Iowa City and has been identified as one of the major growth areas for new business development in the State of Iowa. This Corridor gives employers workforce access to a region uniquely Iowan, founded with a manufacturing heritage, but actively seeking new frontiers and opportunities in information technology, biotechnology and bioprocessing, renewable energy, insurance and financial services, advanced manufacturing, and educational services. Continued developments within Iowa City and the region have a favorable impact upon the City's economy. As a whole, the City's economy continues to grow, but at a slow pace. The major employers have been able to maintain steady employment during the national recession as evidence in the unemployment rate for Iowa City, which continues to remain low at 3.8% for the month of June 2013, as compared to 4.6% for the State of Iowa, and 7.6% for the national average. The rate of new housing construction increased in comparison to the prior year based on the number of building permits issued. This consisted of 143 new single-family houses in 2012, as compared to 80 in 2011; multi-family dwelling units added to the tax rolls for the year ended December 31, 2012 was 144, compared to 76 in 2011; and mixed commercial and residential developments added in 2012 included 100 residential units. Altogether these additions totaled $67,065,000 in 2012, an increase of $21,479,000 from prior year. Permits for commercial construction increased from $12,113,000 in 2011 to $25,758,000 in 2012. And remodeling permits for residential and commercial also increased by $4,555,000 from 2011 to 2012. According to the 2010 census, the population of Iowa City is 67,862. This is an increase of 5,672 or 9.1% as compared to the 2000 census. Current population is estimated to be 70,133. There are many signs that the City remains healthy and vibrant with great promise for the future. The stability of the University of Iowa coupled with historically steady employment by the City’s multi-sector base of manufacturing and service industries, helped insulate the City from any significant negative economic impacts of the national recession. The City’s property valuations continue to rise and along with the low unemployment rate, this is indicative of the City's relative economic stability. 6 Major Initiatives The City of Iowa City, with the assistance of the University of Iowa’s Institute of Public Affairs, completed the City’s Strategic Plan. The strategic planning process involved multiple steps, including gathering input from the general public, front-line City staff, department directors, and the City Council. The Strategic Plan established the prevailing organizational priorities as the following: 1. Neighborhood Stabilization 2. Economic and Community Development 3. Development of the Downtown and Near Downtown Areas 4. A Strong and Sustainable Financial Foundation 5. Coordinated Communication and Customer Service Orientation The first priority from the City’s Strategic Plan that will impact the City’s economy is neighborhood stabilization. The Council has indicated a strong desire to stabilize the neighborhoods surrounding the city core. An effective stabilization strategy requires a review and analysis of the City’s policies, programs, communications, and capital investment decisions that directly shape and influence a neighborhood’s character and livelihood. Staff will be focusing on the central planning district neighborhoods; however many aspects of the neighborhood stabilization review will have implications throughout the community. In order to achieve the Council’s goal, staff will focus on the land use regulations, public infrastructure and open space, private building stock, nuisance mitigation, open stakeholder communication, and updating planning documents. Projects to further neighborhood stabilization include the UniverCity Neighborhood Partnership, a joint project between the City and the University of Iowa to ensure the neighborhoods around the university remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners by acquiring and rehabilitating homes near the University of Iowa campus for resale as affordable owner-occupied housing. Staff will also be actively working with the Iowa City Community School district to promote increased coordination in school and neighborhood planning as neighborhood schools play a role in neighborhood stabilization efforts. The City also continues to invest in neighborhood parks, trails, and events. The City Council has indicated a strong desire to promote private investment in established commercial areas and strategic green-field sites that have previously been targeted for new development. The areas that are currently being focused on include the Towncrest commercial area, Sycamore Mall and First Avenue, Highway 6/Highway 1 intersection, 420th Street Industrial Park, and Moss Office and Northgate Corporate Parks. In the Towncrest commercial area, City staff is working to facilitate redevelopment of several key properties and a streetscape project that will improve the function and aesthetic appeal of the area. The Towncrest Urban Renewal Area was developed to revitalize the Towncrest commercial district in ways that would serve existing businesses while also drawing new retailers, service providers, and consumers to the area. The first catalyst project approved in the Towncrest Urban Renewal Area was a developer’s agreement with MDK Development LLC for the redevelopment of a gas station and a building used for storage at the corner of Muscatine Avenue and William Street. MDK Development LLC purchased both properties, demolished the buildings and is currently constructing two new buildings with a combined square footage of 14,500. The two buildings will be primarily medical offices – home to Eye Associates and Towncrest Dental. A third commercial condo, approximately 2,000 SF is available for lease/purchase. Total project costs for this development are estimated at $5,200,000. The City’s cost for the Towncrest Renewal are estimated at $2,693,000 and will be paid with tax receipts, transfers from TIF, and 7 GO bonds. The departure of an anchor tenant at Sycamore Mall presented a great challenge, but also a unique opportunity to reinvent the commercial space. Mall ownership has plans for physical improvements to the property and the City is coordinating four significant capital projects in the area that are expected to last two or more construction seasons. These projects include improvements to Sycamore and Lower Muscatine Roads, a grade separation project on First Avenue, and repaving of Highway 6. These projects, which are underway in different phases, will each have a positive impact on the traffic flows and aesthetics in this commercial district. Total cost for these projects is $17,921,000 and will be paid from a variety of sources including GO bonds, federal and state grants, road use tax, and utility operations. The Highway 6/Highway 1 intersection is a viable commercial corridor, in large part because of high traffic counts. Staff has focused efforts on municipal public works and transit property in the area. As the City relocates municipal operations from this area, prime development space will become marketable. Staff is working on environmental reviews and preparing a request for proposal for potential development. Total costs for relocating facilities, abatement and land preparation, as well as, aesthetic improvements are estimated to be $32,575,000 and will be paid with GO bonds and federal grants. The City has invested considerable money in infrastructure development and achieved shovel ready status from the State of Iowa for the 420th Street Industrial Park. This project involved annexing and rezoning 180 acres of land and building the street, water, and sewer infrastructure needed to support industrial businesses. The Iowa City Area Development Group and City staff continue to market this property and respond to inquiries from business and site location consultants. This project costs were $13,762,000 and were funded through bonds, state grants, road use tax, and wastewater operations. The City has established an urban renewal area for the development of Moss Office Park, a 243- acre, 18-lot office research and mix use subdivision on the northeast edge of the city, just off Interstate 80. Significant infrastructure improvements are necessary to accommodate the planned growth and City staff is working with Moss Office Park owners and adjacent businesses on potential access arrangements to accommodate a phased development approach to this property. Northgate Corporate Park, adjacent to Moss Office Park, continues to experience build out. Project costs to build the infrastructure are $3,500,000 and are being funded with state grants and GO bonds. The third priority of the Strategic Plan is the development of the Downtown and Near Downtown Areas. Staff is focusing on two distinct geographic areas: Downtown Iowa City and Riverfront Crossings. In 2012, the Iowa City Downtown District (ICDD), a self-supported municipal improvement district, was formed presenting a unique opportunity to bring together property owners, businesses, the University of Iowa, and the City of Iowa City. Staff, in partnership with stakeholders, is working to pursue policies and projects that will more fully realize the potential of the central business district and facilitate new private investment in the area. Some of the ICDD current initiatives include a downtown community gallery for public art and science programs, free Wi-Fi in the Pedestrian Mall, holiday lighting, improved snow removal, downtown ambassadors to assist visitors and maintain public spaces, alley beautification, and a downtown beat cop. The City has also instituted new a parking rate structure, including first hour free to make visiting downtown more convenient. 8 Capital projects that directly impact the Downtown region are the completion of the conversion of Washington Street from one-way to two-way traffic to improve vehicular and pedestrian traffic flow and the downtown maintenance project that will improve the physical condition of the infrastructure and streetscape. The cost of the CBD maintenance project is estimated $1,917,000 and is being funded with GO bonds and transfers from TIF districts. The Library is also in the midst of a remodeling project of the public space at a cost of $403,000. Other projects that will have a positive impact on downtown include is the University of Iowa’s Voxman-Clapp Music Building at the corner of Clinton and Burlington Streets and the private development of a multi-use building on land that is currently owned by the City. The Riverfront Crossing Development Plan is an initiative to revitalize the area south of Iowa City’s downtown area. This area was hard hit by the flooding in 2008 and ideas for improving the district were initiated as part of a combined flood mitigation plan. Through a grant from the Partnership for Sustainable Communities the City, the City created a detailed plan for developing the area. The new neighborhood will feature a waterfront park with walking and biking trails, access to the Iowa River for boating and fishing, a variety of housing options near shopping, restaurants, a state-of-the-art recital hall and recreational facilities and just a short walk to downtown Iowa City and the University of Iowa campus. Several capital projects are either underway or being considered that would directly impact the short- and long-term marketability of the Riverfront Crossing area. These projects include purchasing and rehabilitating the train depot, working with a private partner to develop a mix-use parking facility adjacent to downtown Iowa City which will include three components: parking facility consisting of approximately 600 parking spaces, commercial space of approximately 25,000 – 35,000 square feet, and 25 - 75 workforce housing units. And a third project is the decommissioning of the north wastewater plant by expanding the south wastewater plant. This relocation project has costs totaling $61,217,000 and is being funded through federal and state grants, local option taxes, and wastewater revenues. The City aims to create a strong and sustainable financial foundation that will provide needed stability and flexibility while utilizing taxpayer dollars in the most efficient and responsible manner. In order to achieve this goal, the City is focusing on two primary areas: new financial policies and strategies that will provide a greater level of financial stability and second, enhance the level of financial analysis presented to the public so elected officials will have a greater information foundation on which to base future decisions. Policies included in this analysis are economic development policies, purchasing policies and procedures, target fund balances, debt service coverage levels, general fund contingency level, and an annual review of rates, user charges and fines. The City has also examined operations where the City is providing subsidized service beyond our borders and developed plans to ensure the City is being equitably reimbursed for such services. In June 2013, Moody’s conducted a review of the City as part of the bond rating process and reaffirmed the City’s Aaa bond rating. In their report, Moody said the rating “reflects the City’s stable tax base and economy anchored by the University of Iowa… history of favorable financial operations and expected maintenance of healthy reserves, and manageable debt profile.” The fifth and final priority of the City’s Strategic Plan is coordinated communication and customer service orientation. The City strives to be a high-functioning, customer service orientated organization that actively supports and engages stakeholders through clear, open, and innovative communication methods. A reorganization of staff created a new communication team, which has assumed the responsibilities of the front desk at City Hall and offers front line customer service assistance to visitors and those contacting City Hall via phone or email. The City launched a redesigned homepage and introduced a City Facebook and Twitter page. These 9 communication improvements have allowed the City to reach broader audiences and better promote activities, community news, and service information. The City also introduced ICgovXpress; a convenient way for Iowa City residents to request services, ask questions, or submit citizens reports of everything from trash and debris in unkempt yards to abandoned cars, unshoveled walks, and graffiti either online or by downloading the ICgovXpress app to their smart phone. The City has also completed the first phase of implementing enterprise resource planning software (ERP). On July 1, 2013 the financials modules of general ledger, accounts payable, purchasing, and budget went live. The human resources and payroll sections are scheduled to go live January 1, 2014. And the utility billing and revenues portions will be implemented in the fall of 2014. The ERP system will allow for improved internal workflows and internal and external communication. The cost of this project is $1,876,000 and is being paid with GO bonds, water, wastewater, sanitation, and stormwater revenues. On May 14, 2013, City Council adopted the Iowa City 2030 Comprehensive Plan (IC2030). The City’s last comprehensive plan was completed in 1997 and IC2030 provided an opportunity for the Iowa City community to revisit the vision and goals of the prior plan and assess our progress. As part of the IC2030, goals and strategies were development in the following areas: land use, housing, economic development, transportation, environment and resources, parks and open space, and arts and culture. The IC2030 will influence major initiatives the City undertakes over the next several years. Long-term Financial Planning It is our intent to support the major initiatives through budget appropriations, departmental operations, and employee direction so that the organization as a whole is moving in the same direction. A significant influence in the preparation of the three-year financial plan (FY15 – FY17) is the passage of property tax reform (SF295) by the state legislature. The property tax reform bill has multiple components including a property tax rollback for commercial and industrial property, steadily reducing the taxable value of these property types. The bill establishes a standing appropriation for the State to backfill lost revenues to the City due to the commercial and industrial rollback beginning in FY15 and then caps the amount at FY17 levels. The cumulative reduction in commercial and industrial property taxes due to this rollback is estimated to be $15,418,000 over the next ten years. The maximum reimbursement from the State would be $14,732,000 for a net loss in revenues of $686,000. This bill also limits the annual taxable valuation growth of residential and agricultural property to 3 percent, instead of the current 4 percent. Initially, the financial impact will be minimal but over time the consequences of this change will be significant. The effect will be that the taxable percentage of residential property will increase at a slower pace. Without this change, the estimated taxable percentage of residential property would be 60.85% in assessment year 2022. With this provision in place, the estimated taxable percentage in year 2022 will be 55.11%, a reduction of 5.74%. Based on the assessed value of residential property in Iowa City, the cumulative loss is estimated to be $20,772,000 over the next ten years and the City will not receive any money from the State due to lost revenue from this provision. SF295 also establishes a multi-residential property classification that will include mobile home parks, assisted living facilities, and property primarily intended for human habitation. A gradual rollback will be applied to these properties that will basically treat them as residential property, 10 rather than commercial, by the year 2022. The estimated cumulative loss over the next ten years is $15,505,000 and will not be reimbursed by the State of Iowa. With the implementation of SF295, the City estimates the tax revenue losses to be $1,785,000 for FY15 – FY17. Since some of the effects of these reforms are gradual, the magnitude of the losses will not be felt till later years and the total cumulative ten-year loss is anticipated to be $36,963,000, which will significantly affect the City’s ability to finance services at current levels without finding other revenue sources. On a more positive note, the City is seeing a small but steady growth in assessed property valuations when compared with prior years. And based on the increase in building permits in 2012, assessed valuations should increase at greater pace in the future. In looking at expenses for the FY15 – FY17 financial plan, the City will experience increased expenditures, specifically an increase in bargaining unit contract costs exceeding 2%, additional federal and state regulations and mandates, and rising public safety retirement funding. In balancing the budget for the three-year period, the City attempted to reduce costs where possible, while continuing to provide high quality services; identify and eliminate redundancies that may exist within the organization; examine existing and potential new revenue sources; promote and plan for economic development and redevelopment throughout the City to ensure strong property values; determine appropriate staffing levels; provide for necessary improvements to existing infrastructure and prioritize capital projects; and uphold fiscal integrity and maintain adequate cash reserves. The City also continues to strive to reduce the City’s total property tax levy. For collection year 2012, the levy was $17.842 per $1,000 of assessed value. In 2013, the levy was $17.269, a reduction of 3 percent. And for 2014, the levy is $16.805, a reduction of 3 percent. The consequences of reduced revenues and increased expenses will require continued review of city operations, service delivery, and alternative revenue sources. 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, 2012. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last twenty-eight consecutive years. I believe our current report continues to conform to the Certificate requirements and I will submit it to GFOA to determine its eligibility for another certificate. In addition, the City received the GFOA’s Award for Distinguished Budget Presentation for its annual appropriated budget beginning July 1, 2013. In order to qualify for the Distinguished Budget Presentation Award, the City’s budget document was judged to be proficient or outstanding in several categories including policy documentation, financial planning, and organization. This is the second consecutive year the City has received this award. 11 Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2013. The City Council, as required by law, is responsible for the complete and accurate preparation of the City’s Comprehensive Annual Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds of the City. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the City's Finance Department. I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the City’s Controller, Robin Marshall, Assistant Controller, Sara Sproule, Internal Auditor, Nickolas Schaul, Senior Accountant, Justin Armatis and Payroll Accountant, Chris Hurlbert. Also, I thank the Mayor, members of the City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a dedicated, responsible, and progressive manner. Respectfully submitted, Dennis Bockenstedt Director of Finance 12 13 City of Iowa City Citizens City Manager Communications Office Human Resources Human Rights Broadband Telecommunications Airport Operations Iowa City Municipal Airport City Attorney City Clerk Library Board Airport Commission Library Library Operations Library Foundation Fire Administration Emergency Operations Fire Prevention Training Police Administration Administrative Services Field Operations Parks & Recreation Administration Recreation Park Maintenance Cemetery Operations Finance Administration Accounting Purchasing Revenue Risk Management Information Technology Services Housing & Inspection Services HIS Administration Building Inspections Housing Inspections Housing Authority Senior Center Planning & Community Development Administration Urban Planning Community Development Economic Development Neighborhood Services Metropolitan Planning Organization of Johnson County Human Services Public Works Administration Engineering Services Streets Operations Wastewater Treatment Water Refuse Collection Landfill Storm Water Operations Equipment Replacement Transportation Services Parking Public Transportation City Council 14 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2013 ELECTED OFFICIALS Term Expires Mayor Matt Hayek January 2, 2016 Council Member and Mayor Pro Tem Susan Mims January 2, 2014 Council Member Connie Champion January 2, 2014 Council Member Terry Dickens January 2, 2014 Council Member Rick Dobyns January 2, 2016 Council Member Michelle Payne January 2, 2016 Council Member Jim Throgmorton January 2, 2016 APPOINTED OFFICIALS Date of Hire City Manager Thomas Markus December 1, 2010 City Clerk Marian K. Karr May 21, 1979 City Attorney Eleanor Dilkes March 18, 1996 DEPARTMENT DIRECTORS Assistant to City Manager Geoff Fruin November 28, 2011 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 Transportation Services Chris O’Brien December, 29, 1997 Senior Center Coordinator Linda Kopping March 20, 1995 Interim Fire Chief Roger Jensen June 15, 1987 Parks and Recreation Director Mike Moran September 26, 1983 Director of Finance Dennis Bockenstedt February 15, 2013 Chief of Police Sam Hargadine August 29, 2005 15 16 www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 | Dubuque, IA 52002-2273 | T 563.556.1790 | F 563.557.7842 | EOE Independent Auditor’s Report To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, (City) as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 17 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of June 30, 2013, and the respective changes in financial position and, where, applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Restatement Due to Change in Reporting Entity As discussed in Note 15 to the financial statements, the City changed the components of the reporting entity during the year, and accordingly, has restated the related fund balances and net position as of June 30, 2012. Restatement Due to Correction of an Error As discussed in Note 16 to the financial statements, the City changed its calculation of the Landfill Closure and Postclosure Care liability during the year, and accordingly, has restated the related net position as of June 30, 2012. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Iowa City, Iowa’s financial statements. The introductory section, combining nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organization, and is also not a required part of the financial statements. The combining nonmajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 18 The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 19, 2013, on our consideration of the City of Iowa City, Iowa’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Dubuque, Iowa December 19, 2013 19 -20- (This page left blank intentionally.) 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, 2013. 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 – 12 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, 2013 by $554,620,000 (net position). Of this amount, $125,114,000 (unrestricted net position) may be used to meet the government’s ongoing obligations to its citizens and creditors. • The City’s total net position increased by $64,129,000 during the fiscal year. Governmental activities increased by $18,370,000 and business-type activities increased by $45,759,000. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $66,879,000, a decrease of $7,519,000 in comparison with the prior year. Of this total amount, approximately $11,269,000 or 16.8% is unassigned and available for spending at the City’s discretion. • At the end of the current fiscal year, the City’s unassigned fund balance for the General Fund was $17,113,000 or 39.0% of total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include Public Safety, Public Works (roads and traffic controls), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business-type activities of the City include Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water. 21 The government-wide financial statements may be found on pages 34 – 37 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 six major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, Other Shared Revenue and Grants Fund, Other Construction Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as “Other Governmental Funds”. Individual fund data on each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 38 – 44 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, Transit, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds financial statements provide the same type of information as the government-wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, Housing Authority and Transit 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 108 – 110. 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 46 – 51 of this report. 22 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 52. 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 53 – 97 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 position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $554,620,000 at the close of the fiscal year ended June 30, 2013. By far, the largest portion of the City’s net position reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa City's Net Position June 30, 2013 (amounts expressed in thousands) Governmental Business-type activities activities Total 2013 2012 (as restated)2013 2012 (as restated)2013 2012 Current and other assets 162,144$ 167,913$ 110,907$ 102,449$ 273,051$ 270,362$ Capital assets 182,263 171,096 317,564 282,954 499,827 454,050 Total Assets 344,407 339,009 428,471 385,403 772,878 724,412 Long-term liabilities outstanding 65,012 78,486 72,048 78,124 137,060 156,610 Current and other liabilities 71,795 71,293 9,403 6,018 81,198 77,311 Total Liabilities 136,807 149,779 81,451 84,142 218,258 233,921 Net position: Net investment in capital assets 133,989 118,603 253,617 212,468 387,606 331,071 Restricted 22,867 35,021 19,033 20,176 41,900 55,197 Unrestricted 50,744 35,606 74,370 68,617 125,114 104,223 Total Net Position 207,600$ 189,230$ 347,020$ 301,261$ 554,620$ 490,491$ 23 A portion of the City’s net position, $41,900,000 or 7.6%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net position, $125,114,000 or 22.6%, 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, 2013, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. Governmental Activities: Governmental activities increased the City’s net position by $18,370,000. The increase in net position of governmental activities is primarily due to receiving grants to fund expenditures in capital assets for flood recovery and mitigation and community development projects and collection of a local option sales tax to be used to fund future capital improvement projects. The following is a more detailed review of FY13’s operation. City of Iowa City's Changes in Net Position (amounts expressed in thousands) Governmental Business-type activities activities Total 2013 2012 (as restated)2013 2012 (as restated)2013 2012 (as restated) Revenues: Program Revenues: Charges for services 7,688$ 7,067$ 39,065$ 37,183$ 46,753$ 44,250$ Operating grants and contributions 4,731 6,808 9,224 8,656 13,955 15,464 Capital grants and contributions 6,876 6,078 34,251 6,218 41,127 12,296 General Revenues: Property taxes 51,017 50,516 - - 51,017 50,516 Road use tax 6,589 6,394 - - 6,589 6,394 Local option sales tax 8,858 8,644 - - 8,858 8,644 Other taxes 2,609 2,491 - - 2,609 2,491 Earnings on investments 841 1,096 671 1,540 1,512 2,636 Gain on disposal of capital assets 1,312 2,950 293 336 1,605 3,286 Other 4,390 4,147 918 565 5,308 4,712 Total revenues 94,911 96,191 84,422 54,498 179,333 150,689 Expenses: Public safety 20,989 21,186 - - 20,989 21,186 Public works 10,240 10,369 - - 10,240 10,369 Culture and recreation 14,481 13,107 - - 14,481 13,107 Community and economic development 10,596 16,305 - - 10,596 16,305 General government 7,513 7,591 - - 7,513 7,591 Interest on long-term debt 2,237 2,400 - - 2,237 2,400 Wastewater treatment - - 10,464 11,069 10,464 11,069 Water - - 9,074 8,781 9,074 8,781 Sanitation - - 7,279 1,848 7,279 1,848 Housing authority - - 7,658 7,911 7,658 7,911 Parking - - 4,579 4,167 4,579 4,167 Airport - - 1,086 1,127 1,086 1,127 Stormwater - - 1,318 1,304 1,318 1,304 Cable television - - 692 689 692 689 Transit - - 6,998 7,187 6,998 7,187 Total expenses 66,056 70,958 49,148 44,083 115,204 115,041 Change in net position before transfers and extraordinary items 28,855 25,233 35,274 10,415 64,129 35,648 Transfers (10,485) (4,606) 10,485 4,606 - - Extraordinary items - - - (5,000) - (5,000) Change in net position 18,370 20,627 45,759 10,021 64,129 30,648 Net position beginning of year, as restated 189,230 168,603 301,261 291,240 490,491 459,843 Net position end of year 207,600$ 189,230$ 347,020$ 301,261$ 554,620$ 490,491$ 24 The total revenues for governmental activities for FY13 were $94,911,000. Governmental activities are primarily funded through taxes, $69,073,000 or 72.8%, and grants and contributions, $11,607,000 or 12.2%. Grants and contributions decreased from prior year by $1,279,000 as the City’s expenditures for flood mitigation, which were covered by supplemental Community Development Block Grants, have decreased. Expenses for governmental activities totaled $66,056,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY13, Public Safety accounted for the highest portion of governmental expenses, $20,989,000 or 31.8%, and decreased slightly over the prior year due to start-up cost for the addition of a fourth fire station during FY12 and a reduction in property condemnation. Culture and Recreation, $14,481,000 or 21.9%, made up another large portion of the governmental expenses and increased over the prior year due to the addition of the Terry Trueblood Recreational Area. Community and Economic Development, $10,596,000 or 16.0%, made up the third highest portion of governmental expenses and decreased from the prior year due to fewer flood recovery and mitigation projects. Business-type Activities: Business-type activities increased the City’s total net position by $45,759,000. The increase in net position was primarily in the Wastewater fund and is due to an increase in capital assets funded by grants, rather than debt. The City has been able to utilize federal and state grants to fund a flood recovery and mitigation project, decommission of the North Wastewater Plant through expansion of the South Wastewater Plant, rather than have to issue new debt to pay for this project. The Airport fund also saw an increase in net position due to a capital improvement projects funded through grants. For all business-type activities, revenues exceeded expenses by $35,274,000. Revenues for business-type activities totaled $84,422,000. Usually, the primary revenue source for business- type activities is charges for services. For FY13, these revenues totaled $39,065,000 or 46.3%. In addition for FY13, the City’s business type-activities had a significant portion, $43,475,000 or 51.5%, of their revenues from grants and contributions used to help fund capital and flood recovery projects for business-type activities. This is an increase of $28,601,000 from the prior year due to additional grants to cover expenses for the Wastewater flood mitigation project. The total expenses for business-type activities in FY13 were $49,148,000. Wastewater Treatment represented the highest portion of business-type activities, $10,464,000 or 21.3%, with Water, $9,074,000 or 18.5%, Housing Authority, $7,658,000 or 15.6%, Sanitation, $7,279,000 or 14.8%, and Transit, $6,998,000 or 14.2%, making up the remainder of the majority of business-type activities expenses. The graphs on the following pages represent a breakdown of revenue by source and expenditures by program area for governmental and business-type activities. 25 Charges for services 8% Grants and Contributions 12% Property taxes 54% Other Taxes 19% Misc. Other 7% Governmental Activities FY2013 Revenue by Source Charges for services 46% Grants and Contributions 52% Misc. Other 2% Business-Type Activities FY2013 Revenue by Source 26 Public Safety Public Works Culture and Recreation Community and Econ Dev General Govt Interest Expense 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 Do l l a r s ( $ ) Program Area Governmental Activities FY2013 Expenditures by Program Area (amounts expressed in thousands) WastewaterTreatment Water Sanitation HousingAuthority Parking Airport Stormwater Cable TV Transit 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Do l l a r s ( $ ) Program Area Business-Type Activities FY2013 Expenditures by Program Area (amounts expressed in thousands) 27 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The financial reporting focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions effective with the June 30, 2011 financial statements. Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. As of the fiscal year ended June 30, 2013, the City’s governmental funds reported combined ending fund balances of $66,879,000, a decrease of $7,519,000 in comparison with the prior year. Of this total amount, $11,269,000 constitutes unassigned fund balance, which is available to use as working capital for the General Fund since property tax revenues are received only twice a year and the remainder is available to meet the future needs of the City. The remainder of the fund balance is not available for new spending because of constraints imposed externally by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed internally on the specific purposes for which these amounts can be spent. The restricted fund balance of $53,797,000 or 80.4% contains external restraints on its use. The assigned fund balance of $1,744,000 or 2.6% has been identified by the City to be used for specific purposes. The nonspendable fund balance is $69,000 or 0.1%, which the City is contractually required to maintain intact or cannot be spent because it is in a nonspendable format, such as inventories. The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2013, the unassigned fund balance of the General Fund was $17,113,000 while General Fund’s total fund balance was $44,615,000. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 39.0% of total General Fund expenditures of $43,886,000, while total fund balance represents 101.7% of that same amount. During the current fiscal year, the fund balance of the City’s General Fund increased by $4,667,000. This was due to collection of a local option sales tax that took effect in FY10 to be used to fund future capital improvement projects. This tax was collected through FY13. The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $6,945,000, an increase of $7,232,000. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The fund balance in the Other Construction Fund was $4,242,000, a decrease of $16,604,000. This fund accounts for the construction or replacement of other governmental general capital assets, such as administrative buildings, with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. The changes in these fund balances represent a policy change. Beginning in FY13, bond proceeds were deposited directly into the respective capital improvement projects. Whereas, in prior years, the funds had been deposited and held in the Other Construction Fund and then transferred to the capital improvement projects as expenditures were incurred. This should help prevent having a deficit fund balance in the Bridge, Street, and Traffic Control Construction Fund in future years. The remaining change in fund balance is due to timing of sale of GO bonds. The fund balance for the Community Development Block Grant Fund was negative $8,000, representing a $395,000 decrease in FY13 and revealing that liabilities in this fund were higher than assets. In FY11, the City received program income that we were required to use prior to accessing new grant funding. This 28 program income has now all been utilized and this fund will normally carry a minimal or zero fund balance going forward. The ending fund balance of the Other Shared Revenues and Grants fund was $2,633,000, a $2,034,000 increase. This increase is due to grant funds that were received in FY13 for reimbursement of prior period expenditures. The ending fund balance of the Debt Service Fund was $6,527,000, a decrease of $4,482,000. The City utilized tax increment financing receipts from prior years to retire debt early. This resulted in a decrease in reserves in equity in pooled cash and investments at the end of the fiscal year. The ending balance of unrestricted equity in pooled cash and investments was $5,487,000, representing 28.7% of the total principal and interest payments in FY13 for GO debt. The fund balance in the Employee Benefits Fund was stable from prior year. The ending fund balance was $1,791,000, a decrease of $9,000 or 0.5% from FY12. Proprietary Funds: The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The ending net position of the enterprise funds was $335,681,000, an increase in net position of $44,226,000. This was primarily due to capital contributions of federal and state grants to fund capital improvement projects to help with flood recovery and mitigation and transfer of business-type capital assets from governmental capital project funds. Of the enterprise funds’ net position, $253,617,000 is net investment in capital assets. Unrestricted net position totaled $63,031,000, an increase of $4,220,000 compared to the previous year due to an increase in capital contributions for funding of capital improvement projects that otherwise would have had to be funded with cash from operating revenues. The Internal Service funds showed net position totaling $31,650,000 as of June 30, 2013, an increase of $3,737,000 primarily due to an operating income in the Loss Reserve Fund as claims were less than anticipated and an operating income in the Equipment Reserve Fund to build up reserves for future capital outlay. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, not by fund or fund type. The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues by $36,354,000 or 24.5% to a total of $184,741,000 and the expenditure budget by $99,344,000 or 58.5% to a total of $269,279,000. These increases were due primarily to capital projects in governmental and business-type funds because of timing of completion of projects and ongoing recovery from the flood of 2008 and the associated grants. 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, 2013 amounts to $499,827,000, 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, 2013 increased by $11,168,000 for governmental activities compared to the prior year and increased by $34,609,000 for business-type activities over the prior year. 29 The following table reflects the $499,827,000 investment in capital assets, net of accumulated depreciation. Major capital asset events during the current fiscal year included the following: • Work continued on the South Wastewater Plant Expansion. This project will relocate the North Wastewater Treatment Plant and consolidate operations into the South Wastewater Treatment Plant through expansion of south plant facilities and demolition of the north plant facilities. Funding for the project includes $22,003,000 in federal EDA grants, $13,610,000 in local options sales tax, $5,495,000 in I-JOBS grant monies, $5,000,000 in CDBG Public Infrastructure grants, as well as, $1,890,000 from Wastewater user fees and $7,000,000 in revenue bonds. The beginning construction in progress balance was $5,717,000 and an additional $34,527,000 was moved into construction in progress at the end of FY13 for a total of $40,244,000. This project is scheduled to be complete in FY14. • Current construction projects at the municipal airport include rehabbing existing runways, adding a parallel runway to improve safety, and obstruction mitigation. The construction in progress balance at the end of FY13 was $4,153,000. These costs are primarily funded through federal or state grants, with the remainder of funding from GO bonds. • Completion of a water main replacement on Muscatine Avenue. Project costs were $819,000 and were funded through Water Operations. • Progress continues on the parking facility and enforcement automation project that includes upgrading parking meters on the streets to allow credit card payments and pay-by-cell options and add additional pay on foot and pay in lane equipment. Expenses capitalized in FY13 were $804,000. The project is scheduled to be completed in FY14 with additional costs of $1,531,000 funded through parking operations. • Reconstruction of a landfill cell that was damaged by a fire in FY12 was started. $993,000 was moved into construction in progress at the end of FY13. Total project costs are $4,000,000 and will be funded through landfill operations. • Expenses for a variety of street and bridge construction were moved into construction in progress at the end of FY13 for a total balance of $12,427,000. This includes projects from the City’s major initiative for economic development with balances of $3,046,000 for Lower Muscatine from Kirkwood to First Avenue and $4,455,000 for Sycamore Street from Highway 6 to City Limits. Additional construction in progress includes $2,449,000 for the Iowa City Gateway Project, which will reconstruct and elevate Dubuque Street and Park Road Bridge to provide flood protection. Additional information on the City’s capital assets can be found in Note 5 to the financial statements. City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2012 2012 2012 2013 (as restated)2013 (as restated)2013 (as restated) Land 22,782$ 22,334$ 28,496$ 28,516$ 51,278$ 50,850$ Buildings 35,065 35,520 80,280 83,171 115,345 118,691 Improvements other than buildings 4,120 4,103 5,686 6,114 9,806 10,217 Machinery and equipment 14,203 13,678 11,545 10,743 25,748 24,421 Infrastructure 82,815 82,642 139,960 138,282 222,775 220,924 Construction in progress 23,278 12,818 51,597 16,129 74,875 28,947 Total 182,263$ 171,095$ 317,564$ 282,955$ 499,827$ 454,050$ 30 Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $123,165,000. Of this amount, $58,550,000 comprises debt backed by the full faith and credit of the City. However, $1,190,000 or 2.0% of the general obligation bonds is debt that serves enterprise funds and is abated by their charges for services and $3,449,000 or 5.9% of these bonds is debt that will be paid with Tax Increment Financing revenues. $64,615,000 represents revenue bonds secured solely by specific revenue sources. The City issued $2,655,000 General Obligation bonds during FY13 and during the current fiscal year the City’s total bonded debt still decreased by $20,340,000 through retirement of debt. 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, 2013 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 $230,776,000. With outstanding General Obligation Debt applicable to this limit of $58,550,000 we are utilizing 25.4% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. Economic Factors and Next Year’s Budget and Rates In May 2009, the voters of Iowa City approved a one cent local option sales tax. Collection of this tax began July 1, 2009 and continued for four years ending as of June 30, 2013. In FY13, the City collected $8,858,000 in local option sales tax. The City Council has indicated that the priorities for use of this sales tax will be capital projects for the elevation of Dubuque Street, including the reconstruction of Park Road Bridge, and the expansion of the South Wastewater Plant and demolition of the North Wastewater Plant. Sales tax proceeds are used to provide local match for available state and federal funding and to reduce our reliance on property tax and increased user fees that would otherwise be needed to fund such projects. During the 2009 session, the Iowa State Legislature passed a law allowing cities to utilize franchise fee tax as a revenue alternative to property tax. The Iowa City Council passed a local franchise fee tax of 1% on natural gas and electricity that became effective April 1, 2010. This revenue is being utilized to support additional public safety initiatives, including operating a fourth fire station. In FY13, the City collected $918,000 in local franchise fee. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2013 2012 2013 2012 2013 2012 General obligation bonds 57,360 $ 73,825 $ 1,190$ 1,495$ 58,550$ 75,320$ Revenue bonds 2,655 - 61,960 68,185 64,615 68,185 Total 60,015 $ 73,825 $ 63,150$ 69,680$ 123,165$ 143,505$ 31 The City expects continued constraints by the State’s property tax formula. During the last legislative session, the State passed property tax reform, which will negatively affect the City’s general operating funds. Without the potential for new revenue sources, like those mentioned above, the City’s opportunities for new initiatives are limited. The Council has established a balanced budget in the General Fund for FY14 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed valuation for FY14 is provided below: Requests for Information This report is designed to provide a general overview of the City of Iowa City’s finances for all of those with an interest in the government’s finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to City of Iowa City, Finance Department, 410 East Washington Street, Iowa City, IA, 52240. General Levy $ 8.100 Debt Service Levy 4.030 Employee Benefits Levy 3.163 Transit Levy 0.950 Liability Insurance Levy 0.292 Library Levy 0.270 Emergency Levy - Total City Levy $ 16.805 32 33 Governmental Business-type Activities Activities Total Assets Equity in pooled cash and investments 63,252$ 49,054$ 112,306$ Receivables: Property tax 50,808 - 50,808 Accounts and unbilled usage 1,448 3,762 5,210 Interest 69 531 600 Notes 17,105 956 18,061 Internal balances (11,321) 11,321 - Due from other governments 9,796 8,466 18,262 Inventories 659 653 1,312 Assets held for resale 703 - 703 Restricted assets: Equity in pooled cash and investments 29,601 36,157 65,758 Other post employment benefits asset 24 7 31 Capital assets: Land and construction in progress 46,058 80,092 126,150 Other capital assets (net of accumulated depreciation)136,205 237,472 373,677 Total assets 344,407 428,471 772,878 Liabilities Accounts payable 3,287 1,603 4,890 Contracts payable 2,689 4,840 7,529 Accrued liabilities 2,942 298 3,240 Interest payable 156 1,231 1,387 Deposits 1,021 760 1,781 Due to other governments 18 115 133 Notes payable 538 - 538 Unearned revenue 61,144 556 61,700 Noncurrent liabilities: Due within one year: Employee vested benefits 1,161 428 1,589 Bonds payable 10,347 5,492 15,839 Due in more than one year: Employee vested benefits 950 317 1,267 Other post employment benefits obligation 2,386 951 3,337 Notes payable 211 - 211 Bonds payable 49,957 58,455 108,412 Landfill closure/post-closure liability - 6,405 6,405 Total liabilities 136,807 81,451 218,258 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION June 30, 2013 34 Governmental Business-type Activities Activities Total Net position Net investment in capital assets 133,989$ 253,617$ 387,606$ Restricted for or by: Employee benefits 2,073 - 2,073 Capital projects 13,319 - 13,319 Debt service 6,527 - 6,527 Other purposes 948 - 948 Bond ordinance - 14,525 14,525 State statute - 1,170 1,170 Future improvements - 234 234 Grant agreement - 3,104 3,104 Unrestricted 50,744 74,370 125,114 Total net position 207,600$ 347,020$ 554,620$ The notes to the financial statements are an integral part of this statement. June 30, 2013 (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET POSITION (continued) 35 Operating Capital Charges Grants and Grants and Functions/Programs:Expenses for Services Contributions Contributions Governmental activities: Public safety 20,989$ 4,098$ 365$ 30$ Public works 10,240 52 297 5,056 Culture and recreation 14,481 775 - 1,441 Community and economic development 10,596 - 4,069 349 General government 7,513 2,763 - - Interest on long-term debt 2,237 - - - Total governmental activities 66,056 7,688 4,731 6,876 Business-type activities: Wastewater treatment 10,464 12,832 - 30,181 Water 9,074 8,583 442 494 Sanitation 7,279 8,181 23 - Housing authority 7,658 205 6,968 - Parking 4,579 5,043 - - Airport 1,086 314 11 2,452 Stormwater 1,318 974 13 226 Cable television 692 816 - - Transit 6,998 2,117 1,767 898 Total business-type activities 49,148 39,065 9,224 34,251 Total 115,204$ 46,753$ 13,955$ 41,127$ General revenues: Property taxes, levied for general purposes Road use tax Hotel/motel tax Gas and electric tax Local option sales tax Utility franchise tax Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Total general revenues, transfers, and extraordinary items Changes in net position Net position beginning of year, as restated Net position 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, 2013 (amounts expressed in thousands) 36 Governmental Business-type Activities Activities Total (16,496)$ -$ (16,496)$ (4,835) - (4,835) (12,265) - (12,265) (6,178) - (6,178) (4,750) - (4,750) (2,237) - (2,237) (46,761) - (46,761) - 32,549 32,549 - 445 445 - 925 925 - (485) (485) - 464 464 - 1,691 1,691 - (105) (105) - 124 124 - (2,216) (2,216) - 33,392 33,392 (46,761) 33,392 (13,369) 51,017 - 51,017 6,589 - 6,589 872 - 872 819 - 819 8,858 - 8,858 918 - 918 841 671 1,512 1,312 293 1,605 4,390 918 5,308 (10,485) 10,485 - 65,131 12,367 77,498 18,370 45,759 64,129 189,230 301,261 490,491 207,600$ 347,020$ 554,620$ Net (Expense) Revenue and Changes in Net Position 37 Ca p i t a l Pr o j e c t s Co m m u n i t y Ot h e r De v e l o p m e n t Sh a r e d Other Em p l o y e e Bl o c k Re v e n u e a n d Ot h e r De b t Governmental Ge n e r a l Be n e f i t s Gr a n t Gr a n t s Co n s t r u c t i o n Se r v i c e Funds Total As s e t s Eq u i t y i n p o o l e d c a s h a n d i n v e s t m e n t s 18 , 7 4 4 $ 1, 7 1 5 $ - $ 2, 0 2 1 $ 2, 2 1 3 $ 5, 4 8 7 $ 8,126 $ 38,306 $ Re c e i v a b l e s : P r o p e r t y t a x 28 , 8 6 9 9, 4 9 9 - - - 12 , 1 6 3 277 50,808 A c c o u n t s a n d u n b i l l e d u s a g e 24 8 - - 10 - - - 258 I n t e r e s t 44 - - - 1 1 - 46 N o t e s 1, 1 3 9 - 14 , 7 4 5 20 0 - 1, 0 2 1 - 17,105 Ad v a n c e s t o o t h e r f u n d s 14 8 - 18 - - 17 5 - 341 Du e f r o m o t h e r g o v e r n m e n t s 3, 9 2 7 28 2 18 1 1, 0 9 8 95 5 - 3,252 9,695 As s e t s h e l d f o r r e s a l e 53 8 - - - - - 165 703 Re s t r i c t e d a s s e t s : E q u i t y i n p o o l e d c a s h a n d i n v e s t m e n t s 25 , 7 8 8 - - 7 3, 5 9 7 20 8 1 29,601 T o t a l a s s e t s 79 , 4 4 5 $ 11 , 4 9 6 $ 14 , 9 4 4 $ 3, 3 3 6 $ 6, 7 6 6 $ 19 , 0 5 5 $ 11,821 $ 146,863 $ (continued) Sp e c i a l R e v e n u e CI T Y O F I O W A C I T Y , I O W A BA L A N C E S H E E T GO V E R N M E N T A L F U N D S Ju n e 3 0 , 2 0 1 3 (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 ) 38 Ca p i t a l Pr o j e c t s Co m m u n i t y Ot h e r De v e l o p m e n t Sh a r e d Other Em p l o y e e Bl o c k Re v e n u e a n d Ot h e r De b t Governmental Ge n e r a l Be n e f i t s Gr a n t Gr a n t s Co n s t r u c t i o n Se r v i c e Funds Total Li a b i l i t i e s a n d F u n d B a l a n c e s Li a b i l i t i e s : A c c o u n t s p a y a b l e 1, 2 1 9 $ 16 $ 28 $ 17 4 $ 56 1 $ - $ 656 $ 2,654 $ C o n t r a c t s p a y a b l e - - - - 93 2 - 1,757 2,689 A c c r u e d l i a b i l i t i e s 69 2 1 5 48 6 - 19 771 A d v a n c e s f r o m o t h e r f u n d s - - 14 8 17 5 - - - 323 D u e t o o t h e r g o v e r n m e n t s 15 - - 3 - - - 18 I n t e r e s t p a y a b l e 5 - - - - - - 5 N o t e s p a y a b l e 53 8 - - - - - - 538 D e f e r r e d r e v e n u e 31 , 4 2 3 9, 6 8 8 14 , 7 7 1 29 9 94 7 12 , 5 2 8 2,309 71,965 L i a b i l i t i e s p a y a b l e f r o m r e s t r i c t e d a s s e t s : D e p o s i t s 93 8 - - 4 78 - 1 1,021 T o t a l l i a b i l i t i e s 34 , 8 3 0 9, 7 0 5 14 , 9 5 2 70 3 2, 5 2 4 12 , 5 2 8 4,742 79,984 Fu n d b a l a n c e s : N o n s p e n d a b l e 69 - - - - - - 69 R e s t r i c t e d 25 , 6 8 9 1, 7 9 1 - 2, 9 1 4 8, 4 3 6 7, 2 6 5 7,702 53,797 A s s i g n e d 1, 7 4 4 - - - - - - 1,744 U n a s s i g n e d 17 , 1 1 3 - (8 ) (2 8 1 ) (4 , 1 9 4 ) (7 3 8 ) (623) 11,269 T o t a l f u n d b a l a n c e s 44 , 6 1 5 1, 7 9 1 (8 ) 2, 6 3 3 4, 2 4 2 6, 5 2 7 7,079 66,879 T o t a l l i a b i l i t i e s a n d f u n d b a l a n c e s 79 , 4 4 5 $ 11 , 4 9 6 $ 14 , 9 4 4 $ 3, 3 3 6 $ 6, 7 6 6 $ 19 , 0 5 5 $ 11,821 $ 146,863 $ Th 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 a r e a n i n t e g r a l p a r t o f t h i s s t a t e m e n t . BA L A N C E S H E E T ( c o n t i n u e d ) GO V E R N M E N T A L F U N D S Ju n e 3 0 , 2 0 1 3 (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 ) Sp e c i a l R e v e n u e CI T Y O F I O W A C I T Y , I O W A 39 Total governmental fund balances 66,879$ Amounts reported for governmental activities in the statement of net position are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.31,650 Other long-term assets are not available to pay for current period expenditures and therefore are deferred in the funds: Notes, grants and other receivables - Earned but unavailable 10,821 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 174,564 Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds.(1,998) Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds.(2,311) Bonds payable are not due and payable in the current period and therefore are not reported in the funds.(60,304) Notes payable are not due and payable in the current period and therefore are not reported in the funds.(211) Accrued interest on bonds (151) Internal balance due to integration of internal service funds (11,339) Total net position of governmental activities 207,600$ 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 POSITION June 30, 2013 40 41 Ca p i t a l Pr o j e c t s Co m m u n i t y Ot h e r De v e l o p m e n t Sh a r e d Other Em p l o y e e Bl o c k Re v e n u e a n d Ot h e r De b t Governmental Ge n e r a l Be n e f i t s Gr a n t Gr a n t s Co n s t r u c t i o n Se r v i c e Funds Total Re v e n u e s T a x e s 38 , 8 8 6 $ 9, 4 5 3 $ - $ - $ - $ 13 , 2 0 0 $ 944 $ 62,483 $ L i c e n s e s a n d p e r m i t s 1, 7 8 4 - - - - - - 1,784 I n t e r g o v e r n m e n t a l 2, 8 7 1 - 1, 8 3 8 10 , 1 6 2 2, 9 5 7 - 2,113 19,941 C h a r g e s f o r s e r v i c e s 1, 4 6 2 25 6 - 25 - - 57 1,800 U s e o f m o n e y a n d p r o p e r t y 55 7 - 27 61 20 10 7 10 782 M i s c e l l a n e o u s 4, 7 6 2 6 29 7 89 46 3 65 9 49 6,325 T o t a l r e v e n u e s 50 , 3 2 2 9, 7 1 5 2, 1 6 2 10 , 3 3 7 3, 4 4 0 13 , 9 6 6 3,173 93,115 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 19 , 6 8 5 24 0 - - 72 3 - - 20,648 P u b l i c w o r k s 1, 1 5 9 - - 4, 9 8 6 84 9 - 1,509 8,503 C u l t u r e a n d r e c r e a t i o n 12 , 2 9 9 - - - 70 1 - - 13,000 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 2, 0 7 6 - 2, 2 2 2 1, 2 0 6 1, 5 3 0 - 1,185 8,219 G e n e r a l g o v e r n m e n t 6, 7 5 1 35 3 - - 17 6 6 - 7,286 D e b t s e r v i c e : Pr i n c i p a l - - - - - 16 , 4 6 5 - 16,465 In t e r e s t - - - - - 2, 3 3 9 - 2,339 C a p i t a l o u t l a y 1, 9 1 6 - - 2, 2 5 3 8, 2 5 5 - 5,437 17,861 T o t a l e x p e n d i t u r e s 43 , 8 8 6 59 3 2, 2 2 2 8, 4 4 5 12 , 2 3 4 18 , 8 1 0 8,131 94,321 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 6, 4 3 6 9, 1 2 2 (6 0 ) 1, 8 9 2 (8 , 7 9 4 ) (4 , 8 4 4 ) (4,958) (1,206) (continued) Sp e c i a l R e v e n u e CI T Y O F I O W A C I T Y , I O W A ST A T E M E N T O F R E V E N U E S , E X P E N D I T U R E S , A N D C H A N G E S I N F U N D B A L A N C E S GO V E R N M E N T A L F U N D S Fo r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 3 (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 ) 42 Ca p i t a l Pr o j e c t s Co m m u n i t y Ot h e r De v e l o p m e n t Sh a r e d Other Em p l o y e e Bl o c k Re v e n u e a n d Ot h e r De b t Governmental Ge n e r a l Be n e f i t s Gr a n t Gr a n t s Co n s t r u c t i o n Se r v i c e Funds Total 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 d e b t - - - - 2, 5 7 9 76 - 2,655 S a l e o f c a p i t a l a s s e t s 49 6 - - 87 3 - - - 1,369 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 - - - - (4 2 ) - - (42) T r a n s f e r s i n 9, 3 2 9 - - 43 8 2, 0 6 0 28 6 13,085 25,198 T r a n s f e r s o u t (1 1 , 5 9 4 ) (9 , 1 3 1 ) (3 3 5 ) (1 , 1 6 9 ) (1 2 , 4 0 7 ) - (857) (35,493) 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 a n d ( u s e s ) (1 , 7 6 9 ) (9 , 1 3 1 ) (3 3 5 ) 14 2 (7 , 8 1 0 ) 36 2 12,228 (6,313) N e t c h a n g e i n f u n d b a l a n c e s 4, 6 6 7 (9 ) (3 9 5 ) 2, 0 3 4 (1 6 , 6 0 4 ) (4 , 4 8 2 ) 7,270 (7,519) Fu n d B a l a n c e s , B e g i n n i n g , a s r e s t a t e d 39 , 9 4 8 1, 8 0 0 38 7 59 9 20 , 8 4 6 11 , 0 0 9 (191) 74,398 Fu n d B a l a n c e s , E n d i n g 44 , 6 1 5 $ 1, 7 9 1 $ (8 ) $ 2, 6 3 3 $ 4, 2 4 2 $ 6, 5 2 7 $ 7,079 $ 66,879 $ Th 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 a r e a n i n t e g r a l p a r t o f t h i s s t a t e m e n t . Sp e c i a l R e v e n u e CI T Y O F I O W A C I T Y , I O W A ST A T E M E N T O F R E V E N U E S , E X P E N D I T U R E S , A N D C H A N G E S I N F U N D B A L A N C E S ( c o n t i n u e d ) GO V E R N M E N T A L F U N D S Fo r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 3 (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 ) 43 Net change in fund balances - total governmental funds (7,519)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets 16,030$ Transfers of capital assets (to)\from enterprise funds - net (660) Transfers of capital assets (to)\from internal service funds - net (1) Capital assets contributed 498 Depreciation expense (5,592) 10,275 Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position. Debt issued (2,655) Discount / (premium) on bonds issued 42 Repayments of debt 16,465 Amortization of premium 70 13,922 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.52 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 (83) Change in accrued post employment benefit obligations (456) Change in accrued interest on debt 32 In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital asset sold.(57) 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.2,204 Change in net position of governmental activities 18,370$ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) For the Year Ended June 30, 2013 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 44 45 Governmental Activities - Ot h e r Internal Wa s t e w a t e r Ho u s i n g En t e r p r i s e Service Pa r k i n g Tr e a t m e n t Wa t e r Sa n i t a t i o n Au t h o r i t y Tr a n s i t Fu n d s To t a l Funds As s e t s Cu r r e n t a s s e t s : E q u i t y i n p o o l e d c a s h a n d i n v e s t m e n t s 5, 0 3 2 $ 15 , 6 5 5 $ 7, 4 1 0 $ 9, 3 5 6 $ 3 , 3 4 4 $ 4 , 3 3 1 $ 3 , 9 2 6 $ 49 , 0 5 4 $ 24,946 $ R e c e i v a b l e s : A c c o u n t s a n d u n b i l l e d u s a g e 17 5 1 , 3 5 0 88 5 1 , 0 5 9 2 1 0 2 8 1 3, 7 6 2 1,190 I n t e r e s t 13 41 8 28 21 4 5 3 3 5 3 1 23 N o t e s - - - - 9 5 6 - - 9 5 6 - A d v a n c e s t o o t h e r f u n d s - - - 1 , 0 0 1 - - - 1 , 0 0 1 - D u e f r o m o t h e r g o v e r n m e n t s - 6 , 9 5 9 58 2 16 1 8 1 0 0 7 9 1 8, 4 6 6 101 I n v e n t o r i e s - - 4 1 1 - - 2 4 2 - 6 5 3 659 T o t a l c u r r e n t a s s e t s 5, 2 2 0 24 , 3 8 2 9, 3 1 6 11 , 4 5 3 4, 3 6 5 4 , 6 8 6 5 , 0 0 1 64 , 4 2 3 26,919 No n c u r r e n t a s s e t s : R e s t r i c t e d a s s e t s : E q u i t y i n p o o l e d c a s h a n d i n v e s t m e n t s 1, 6 6 8 10 , 0 7 4 4, 6 3 1 16 , 4 4 8 3, 1 0 4 7 2 2 5 3 6 , 1 5 7 - O t h e r p o s t e m p l o y m e n t b e n e f i t s a s s e t - - - - - - 7 7 24 C a p i t a l a s s e t s : L a n d 6, 7 9 8 75 9 6, 2 9 6 1, 9 1 2 69 0 2 , 6 3 0 9 , 4 1 1 28 , 4 9 6 45 B u i l d i n g s 26 , 2 4 9 59 , 7 0 1 24 , 0 1 9 5, 4 9 5 5 , 3 5 0 1 5 , 3 9 9 5, 6 6 1 1 4 1 , 8 7 4 821 I m p r o v e m e n t s o t h e r t h a n b u i l d i n g s 32 8 7 , 3 7 1 2, 3 5 1 16 0 9 - 3 5 7 1 0 , 5 7 6 50 M a c h i n e r y a n d e q u i p m e n t 1, 3 7 1 10 , 1 3 5 10 , 4 5 8 42 5 1 1 6 1 0 , 0 8 6 65 0 3 3 , 2 4 1 17,218 I n f r a s t r u c t u r e - 9 4 , 0 3 6 54 , 6 8 5 11 , 2 9 8 - 9 5 5 5 0 , 8 3 9 21 1 , 8 1 3 1,608 A c c u m u l a t e d d e p r e c i a t i o n (1 6 , 2 2 7 ) (7 4 , 5 8 8 ) (2 7 , 7 8 7 ) (1 0 , 6 6 4 ) (3 , 9 7 8 ) ( 1 1 , 4 8 9 ) ( 1 5 , 2 9 9 ) (1 6 0 , 0 3 2 ) (12,562) C o n s t r u c t i o n i n p r o g r e s s 53 7 4 0 , 2 2 1 90 5 3 , 9 1 5 - - 6 , 0 1 8 51 , 5 9 6 519 T o t a l n o n c u r r e n t a s s e t s 20 , 7 2 4 14 7 , 7 0 9 75 , 5 5 8 28 , 9 8 9 5, 2 9 1 1 7 , 5 8 8 5 7 , 8 6 9 35 3 , 7 2 8 7,723 T o t a l a s s e t s 25 , 9 4 4 17 2 , 0 9 1 84 , 8 7 4 40 , 4 4 2 9, 6 5 6 2 2 , 2 7 4 6 2 , 8 7 0 41 8 , 1 5 1 34,642 (continued) ST A T E M E N T O F N E T P O S I T I O N CI T Y O F I O W A C I T Y , I O W A Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d 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 ) Ju n e 3 0 , 2 0 1 3 PR O P R I E T A R Y F U N D S 46 Governmental Activities - Ot h e r Internal Wa s t e w a t e r Ho u s i n g En t e r p r i s e Service Pa r k i n g Tr e a t m e n t Wa t e r Sa n i t a t i o n Au t h o r i t y Tr a n s i t Fu n d s To t a l Funds Li a b i l i t i e s Cu r r e n t l i a b i l i t i e s : A c c o u n t s p a y a b l e 59 0 $ 38 0 $ 15 3 $ 96 $ 2 5 $ 1 2 5 $ 2 3 4 $ 1, 6 0 3 $ 633 $ C o n t r a c t s p a y a b l e - 3 , 4 1 1 55 54 9 - - 8 2 5 4, 8 4 0 - A c c r u e d l i a b i l i t i e s 37 44 50 48 1 8 8 7 1 4 29 8 2,170 E m p l o y e e v e s t e d b e n e f i t s 50 60 77 80 2 7 1 1 5 19 42 8 63 D u e t o o t h e r g o v e r n m e n t s - - 13 65 2 2 1 5 - 1 1 5 - D e f e r r e d r e v e n u e 28 0 - - - - 2 7 6 - 5 5 6 - I n t e r e s t p a y a b l e 15 8 73 5 33 8 - - - - 1 , 2 3 1 - B o n d e d d e b t p a y a b l e ( n e t o f u n a m o r t i z e d p r e m i u m a n d d i s c o u n t s ) 53 2 3 , 3 3 2 1, 6 2 8 - - - - 5 , 4 9 2 - T o t a l c u r r e n t l i a b i l i t i e s 1, 6 4 7 7, 9 6 2 2, 3 1 4 83 8 92 6 1 8 1 , 0 9 2 14 , 5 6 3 2,866 No n c u r r e n t l i a b i l i t i e s : L i a b i l i t i e s p a y a b l e f r o m r e s t r i c t e d a s s e t s : D e p o s i t s 1 - 4 3 4 17 2 9 2 7 9 7 6 0 - A d v a n c e s f r o m o t h e r f u n d s - - - - 1 8 1 4 1 8 6 0 1, 0 1 9 - E m p l o y e e v e s t e d b e n e f i t s 33 45 60 60 2 1 8 3 1 5 31 7 51 B o n d e d d e b t p a y a b l e ( n e t o f u n a m o r t i z e d p r e m i u m a n d d i s c o u n t s ) 7, 1 7 3 32 , 6 6 0 18 , 6 2 2 - - - - 5 8 , 4 5 5 - O t h e r p o s t e m p l o y m e n t b e n e f i t s o b l i g a t i o n 13 0 14 6 17 0 21 4 51 2 2 4 16 95 1 75 L a n d f i l l c l o s u r e / p o s t c l o s u r e l i a b i l i t y - - - 6 , 4 0 5 - - - 6 , 4 0 5 - T o t a l n o n c u r r e n t l i a b i l i t i e s 7, 3 3 7 32 , 8 5 1 19 , 2 8 6 6, 6 9 6 38 2 4 5 5 9 0 0 6 7 , 9 0 7 126 T o t a l l i a b i l i t i e s 8, 9 8 4 40 , 8 1 3 21 , 6 0 0 7, 5 3 4 47 4 1 , 0 7 3 1 , 9 9 2 82 , 4 7 0 2,992 Ne t P o s i t i o n Ne t i n v e s t m e n t i n c a p i t a l a s s e t s 11 , 3 5 1 10 1 , 6 4 3 50 , 6 7 7 12 , 5 4 1 2, 1 8 7 1 7 , 5 8 1 5 7 , 6 3 7 25 3 , 6 1 7 7,699 Re s t r i c t e d b y b o n d o r d i n a n c e 1, 3 7 4 9, 3 3 9 3, 8 1 2 - - - - 1 4 , 5 2 5 - Re s t r i c t e d b y s t a t e s t a t u t e - - - 1 , 1 7 0 - - - 1 , 1 7 0 - Re s t r i c t e d f o r f u t u r e i m p r o v e m e n t s 13 4 - - - - - 1 0 0 23 4 - Re s t r i c t e d b y g r a n t a g r e e m e n t - - - - 3 , 1 0 4 - - 3 , 1 0 4 - Un r e s t r i c t e d 4, 1 0 1 20 , 2 9 6 8, 7 8 5 19 , 1 9 7 3, 8 9 1 3 , 6 2 0 3 , 1 4 1 63 , 0 3 1 23,951 T o t a l n e t p o s i t i o n 16 , 9 6 0 $ 1 3 1 , 2 7 8 $ 63 , 2 7 4 $ 32 , 9 0 8 $ 9, 1 8 2 $ 2 1 , 2 0 1 $ 6 0 , 8 7 8 $ 33 5 , 6 8 1 31,650 $ A d j u s t m e n t t o r e f l e c t t h e c o n s o l i d a t i o n o f i n t e r n a l s e r v i c e f u n d a c t i v i t i e s r e l a t e d t o e n t e r p r i s e f u n d s . 11 , 3 3 9 N e t p o s i t i o n o f b u s i n e s s - t y p e a c t i v i t i e s 34 7 , 0 2 0 $ Th 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 a r e a n i n t e g r a l p a r t o f t h i s s t a t e m e n t . CI T Y O F I O W A C I T Y , I O W A Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d 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 ) Ju n e 3 0 , 2 0 1 3 PR O P R I E T A R Y F U N D S ST A T E M E N T O F N E T P O S I T I O N ( c o n t i n u e d ) 47 Governmental Activities - Ot h e r Internal Wa s t e w a t e r Ho u s i n g En t e r p r i s e Service Pa r k i n g T r e a t m e n t W a t e r S a n i t a t i o n A u t h o r i t y T r a n s i t F u n d s T o t a l F u n d s Op e r a t i n g R e v e n u e s : C h a r g e s f o r s e r v i c e s 5, 0 4 3 $ 1 2 , 8 3 2 $ 8, 5 8 3 $ 8 , 1 8 1 $ 20 5 $ 2 , 1 1 7 $ 2 , 1 0 4 $ 39,065 $ 18,024 $ M i s c e l l a n e o u s 37 1 0 2 1 7 4 51 4 6 2 1 4 1 3 14 T o t a l o p e r a t i n g r e v e n u e s 5, 0 8 0 1 2 , 9 3 4 8, 7 5 7 8 , 2 3 2 25 1 2 , 1 1 9 2 , 1 0 5 39,478 18,038 Op e r a t i n g E x p e n s e s : P e r s o n a l s e r v i c e s 1, 7 1 8 1, 9 3 8 2 , 6 3 3 2 , 6 7 8 98 5 3 , 7 0 4 78 9 1 4 , 4 4 5 2,112 C o m m o d i t i e s 63 0 85 4 1 , 6 0 9 20 8 45 9 6 5 2 1 1 4 , 5 2 2 2,729 S e r v i c e s a n d c h a r g e s 1, 2 0 1 2, 5 4 8 2 , 1 0 6 4 , 4 7 8 6 , 5 3 4 1 , 4 8 5 58 6 1 8 , 9 3 8 9,027 3, 5 4 9 5, 3 4 0 6 , 3 4 8 7 , 3 6 4 7 , 5 6 4 6 , 1 5 4 1 , 5 8 6 37,905 13,868 D e p r e c i a t i o n 78 7 3 , 9 1 2 2 , 1 6 9 41 3 1 2 8 1 , 0 4 1 1 , 5 3 5 9,985 1,537 T o t a l o p e r a t i n g e x p e n s e s 4, 3 3 6 9, 2 5 2 8 , 5 1 7 7 , 7 7 7 7 , 6 9 2 7 , 1 9 5 3 , 1 2 1 47,890 15,405 O p e r a t i n g i n c o m e ( l o s s ) 74 4 3 , 6 8 2 24 0 4 5 5 ( 7 , 4 4 1 ) ( 5 , 0 7 6 ) ( 1 , 0 1 6 ) (8,412) 2,633 No n o p e r a t i n g R e v e n u e s ( E x p e n s e s ) : G a i n ( l o s s ) o n d i s p o s a l o f c a p i t a l a s s e t s - - - - - - 2 9 3 293 215 I n s u r a n c e r e c o v e r i e s - - - 5 0 5 - - - 5 0 5 - O p e r a t i n g g r a n t s - - 4 4 2 23 6 , 9 6 8 1 , 7 6 7 24 9 , 2 2 4 1 I n t e r e s t i n c o m e 42 3 6 7 1 4 3 69 3 4 1 2 4 6 7 1 59 I n t e r e s t e x p e n s e (3 2 4 ) ( 1 , 4 0 0 ) (7 3 1 ) - - - - ( 2 , 4 5 5 ) - T o t a l n o n o p e r a t i n g r e v e n u e s ( e x p e n s e s ) ( 2 8 2 ) ( 1 , 0 3 3 ) (1 4 6 ) 59 7 7 , 0 0 2 1 , 7 7 9 32 1 8 , 2 3 8 275 (continued) Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d 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 ) PR O P R I E T A R Y F U N D S ST A T E M E N T O F R E V E N U E S , E X P E N S E S A N D C H A N G E S I N F U N D N E T P O S I T I O N CI T Y O F I O W A C I T Y , I O W A Fo r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 3 48 Governmental Activities - Ot h e r Internal Wa s t e w a t e r Ho u s i n g En t e r p r i s e Service Pa r k i n g T r e a t m e n t W a t e r S a n i t a t i o n A u t h o r i t y T r a n s i t F u n d s T o t a l F u n d s I n c o m e ( l o s s ) b e f o r e c a p i t a l c o n t r i b u t i o n s , t r a n s f e r s a n d e x t r a o r d i n a r y i t e m s 46 2 2 , 6 4 9 94 1 , 0 5 2 (4 3 9 ) ( 3 , 2 9 7 ) (6 9 5 ) (174) 2,908 C a p i t a l c o n t r i b u t i o n s - 3 0 , 8 4 1 49 4 - - 8 9 8 2 , 6 7 8 34,911 23 T r a n s f e r s i n - 7 , 3 2 2 89 3 - 5 2 , 9 1 1 2 , 5 4 8 13,679 806 T r a n s f e r s o u t (2 2 4 ) ( 1 , 5 6 6 ) ( 1 , 4 8 1 ) (1 5 6 ) (4 7 ) (6 ) ( 7 1 0 ) (4,190) - C h a n g e i n n e t p o s i t i o n 23 8 3 9 , 2 4 6 - 8 9 6 ( 4 8 1 ) 50 6 3 , 8 2 1 44,226 3,737 Ne t P o s i t i o n , B e g i n n i n g , a s r e s t a t e d 16 , 7 2 2 92 , 0 3 2 6 3 , 2 7 4 3 2 , 0 1 2 9, 6 6 3 2 0 , 6 9 5 5 7 , 0 5 7 27,913 Ne t P o s i t i o n , E n d i n g 16 , 9 6 0 $ 1 3 1 , 2 7 8 $ 63 , 2 7 4 $ 3 2 , 9 0 8 $ 9, 1 8 2 $ 2 1 , 2 0 1 $ 6 0 , 8 7 8 $ 31,650 $ A d j u s t m e n t t o r e f l e c t t h e c o n s o l i d a t i o n o f i n t e r n a l s e r v i c e f u n d a c t i v i t i e s r e l a t e d t o e n t e r p r i s e f u n d s . 1,533 C h a n g e i n n e t p o s i t i o n o f b u s i n e s s - t y p e a c t i v i t i e s 45,759 $ Th 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 a r e a n i n t e g r a l p a r t o f t h i s s t a t e m e n t . Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d s CI T Y O F I O W A C I T Y , I O W A ST A T E M E N T O F R E V E N U E S , E X P E N S E S A N D C H A N G E S I N F U N D N E T P O S I T I O N ( c o n t i n u e d ) PR O P R I E T A R Y F U N D S Fo r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 3 (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 ) 49 Go v e r n m e n t a l Ac t i v i t i e s - Ot h e r In t e r n a l Wa s t e w a t e r Ho u s i n g En t e r p r i s e Se r v i c e Pa r k i n g Tr e a t m e n t Wa t e r Sa n i t a t i o n Au t h o r i t y Tr a n s i t Fu n d s To t a l Funds Ca s h F l o w s F r o m O p e r a t i n g A c t i v i t i e s R e c e i p t s f r o m c u s t o m e r s a n d u s e r s 4, 9 1 3 $ 12 , 9 9 2 $ 8, 9 8 6 $ 7, 6 5 9 $ 21 3 $ 2 , 1 0 7 $ 2, 1 0 8 $ 3 8 , 9 7 8 $ 16,841 $ P a y m e n t s t o s u p p l i e r s (1 , 2 7 8 ) (3 , 0 7 1 ) ( 3 , 6 9 7 ) (4 , 5 6 3 ) (6 , 5 7 0 ) (2 , 4 7 2 ) (6 9 4 ) ( 2 2 , 3 4 5 ) (12,262) P a y m e n t s t o e m p l o y e e s (1 , 7 0 2 ) (1 , 9 1 3 ) ( 2 , 6 0 5 ) (2 , 6 5 1 ) (9 7 8 ) ( 3 , 6 3 0 ) (7 8 6 ) ( 1 4 , 2 6 5 ) (1,856) N e t c a s h f l o w s f r o m o p e r a t i n g a c t i v i t i e s 1, 9 3 3 8, 0 0 8 2 , 6 8 4 44 5 ( 7 , 3 3 5 ) (3 , 9 9 5 ) 62 8 2 , 3 6 8 2,723 Ca s h F l o w s F r o m N o n c a p i t a l F i n a n c i n g A c t i v i t i e s G r a n t s r e c e i v e d - - 3 6 7 14 6 , 9 8 6 1, 8 1 4 (3 ) 9 , 1 7 8 - T r a n s f e r s f r o m o t h e r f u n d s - 7 , 3 2 2 89 3 - 5 2 , 9 1 1 2, 5 4 8 1 3 , 6 7 9 809 T r a n s f e r s t o o t h e r f u n d s (2 2 4 ) (1 , 5 6 6 ) ( 1 , 4 8 1 ) (1 5 6 ) (4 7 ) (6 ) ( 7 1 0 ) ( 4 , 1 9 0 ) - R e p a y m e n t / ( p a y m e n t ) o f n o t e s r e c e i v a b l e - - - - 7 - - 7 - R e p a y m e n t o f a d v a n c e s f r o m o t h e r f u n d s (5 0 7 ) - - - - ( 5 5 ) ( 2 7 9 ) ( 8 4 1 ) - R e p a y m e n t o f a d v a n c e s t o o t h e r f u n d s - - - 2 , 7 9 5 - - - 2 , 7 9 5 - N e t c a s h f l o w s f r o m n o n c a p i t a l f i n a n c i n g a c t i v i t i e s (7 3 1 ) 5, 7 5 6 (2 2 1 ) 2, 6 5 3 6,9 5 1 4, 6 6 4 1, 5 5 6 2 0 , 6 2 8 809 Ca s h F l o w s F r o m C a p i t a l a n d R e l a t e d F i n a n c i n g Ac t i v i t i e s C a p i t a l g r a n t s r e c e i v e d - 2 3 , 4 9 2 91 2 - - 6 9 1 2 , 2 7 3 2 7 , 3 6 8 - A c q u i s i t i o n a n d c o n s t r u c t i o n o f p r o p e r t y a n d e q u i p m e n t (4 4 7 ) ( 3 1 , 8 6 0 ) (2 , 0 6 0 ) (7 2 3 ) - ( 1 , 0 6 9 ) (3 , 7 2 0 ) ( 3 9 , 8 7 9 ) (2,485) P r o c e e d s f r o m s a l e o f p r o p e r t y - - - - - - 3 1 7 3 1 7 234 P r o c e e d s f r o m i n s u r a n c e r e c o v e r i e s - - - 5 0 5 - - - 5 0 5 - P r i n c i p a l p a i d o n b o n d e d d e b t (5 1 5 ) (4 , 8 6 5 ) ( 1 , 1 5 0 ) - - - - ( 6 , 5 3 0 ) - I n t e r e s t p a i d o n b o n d e d d e b t (3 3 4 ) (1 , 5 4 8 ) (8 1 3 ) - - - - ( 2 , 6 9 5 ) - N e t c a s h f l o w s f r o m c a p i t a l a n d r e l a t e d f i n a n c i n g a c t i v i t i e s (1 , 2 9 6 ) (1 4 , 7 8 1 ) (3 , 1 1 1 ) (2 1 8 ) - ( 3 7 8 ) ( 1 , 1 3 0 ) ( 2 0 , 9 1 4 ) (2,251) Ca s h F l o w s F r o m I n v e s t i n g A c t i v i t i e s I n t e r e s t o n i n v e s t m e n t s 47 29 0 1 4 5 92 38 12 7 6 3 1 84 N e t i n c r e a s e ( d e c r e a s e ) i n c a s h a n d c a s h e q u i v a l e n t s (4 7 ) (7 2 7 ) ( 5 0 3 ) 2, 9 7 2 (3 4 6 ) 30 3 1 , 0 6 1 2 , 7 1 3 1,365 Ca s h a n d C a s h E q u i v a l e n t s , B e g i n n i n g , a s r e s t a t e d 6, 7 4 7 26 , 4 5 6 1 2 , 5 4 4 22 , 8 3 2 6,7 9 4 4, 0 3 5 3, 0 9 0 8 2 , 4 9 8 23,581 Ca s h a n d C a s h E q u i v a l e n t s , E n d i n g 6, 7 0 0 $ 25 , 7 2 9 $ 1 2 , 0 4 1 $ 25 , 8 0 4 $ 6,4 4 8 $ 4, 3 3 8 $ 4, 1 5 1 $ 8 5 , 2 1 1 $ 24,946 $ (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 Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d 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 ) Fo r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 3 PR O P R I E T A R Y F U N D S ST A T E M E N T O F C A S H F L O W S 50 Go v e r n m e n t a l Activities - Ot h e r Internal Wa s t e w a t e r Ho u s i n g En t e r p r i s e Service Pa r k i n g T r e a t m e n t W a t e r S a n i t a t i o n A u t h o r i t y T r a n s i t F u n d s T o t a l F u n d s Re c o n c i l i a t i o n o f o p e r a t i n g i n c o m e ( l o s s ) t o n e t c a s h f l o w s f r o m o p e r a t i n g a c t i v i t i e s : O p e r a t i n g i n c o m e ( l o s s ) 74 4 $ 3 , 6 8 2 $ 24 0 $ 4 5 5 $ ( 7 , 4 4 1 ) $ ( 5 , 0 7 6 ) $ ( 1 , 0 1 6 ) $ (8 , 4 1 2 ) $ 2,633 $ A d j u s t m e n t s t o r e c o n c i l e o p e r a t i n g i n c o m e ( l o s s ) t o n e t c a s h f l o w s f r o m o p e r a t i n g a c t i v i t i e s : D e p r e c i a t i o n e x p e n s e 78 7 3 , 9 1 2 2 , 1 6 9 41 3 1 2 8 1 , 0 4 1 1 , 5 3 5 9, 9 8 5 1,537 C h a n g e s i n : R e c e i v a b l e s : A c c o u n t s a n d u n b i l l e d u s a g e (1 6 7 ) 58 9 1 ( 5 7 5 ) - ( 6 ) 2 ( 5 9 7 ) (1,190) D u e f r o m o t h e r g o v e r n m e n t s - - 1 1 7 1 ( 1 ) ( 5 ) - 1 1 2 (7) I n v e n t o r i e s - - 3 - - 3 - 6 ( 1 6 9 ) A c c o u n t s p a y a b l e 55 3 33 1 2 0 5 9 4 ( 2 5 ) 1 0 3 1, 0 4 5 (337) A c c r u e d l i a b i l i t i e s 7 6 6 6 2 3 0 - 57 232 E m p l o y e e v e s t e d b e n e f i t s (4 ) 8 ( 2 ) ( 1 2 ) (1 ) ( 5 ) ( 2 ) (1 8 ) 1 D u e t o o t h e r g o v e r n m e n t s - - ( 5 ) ( 2 2 4 ) 5 - - ( 2 2 4 ) - D e p o s i t s - - 2 1 1 ( 3 7 ) (1 ) 1 (1 5 ) - O t h e r p o s t e m p l o y m e n t b e n e f i t s a s s e t / o b l i g a t i o n 13 11 2 4 3 3 6 4 9 5 1 4 1 23 L a n d f i l l c l o s u r e / p o s t c l o s u r e l i a b i l i t y - - - 2 8 8 - - - 2 8 8 - T o t a l a d j u s t m e n t s 1, 1 8 9 4, 3 2 6 2 , 4 4 4 (1 0 ) 1 0 6 1 , 0 8 1 1 , 6 4 4 10 , 7 8 0 90 Ne t c a s h f l o w s f r o m o p e r a t i n g a c t i v i t i e s 1, 9 3 3 $ 8, 0 0 8 $ 2, 6 8 4 $ 44 5 $ (7 , 3 3 5 ) $ (3 , 9 9 5 ) $ 62 8 $ 2, 3 6 8 $ 2,723 $ No n c a s h I n v e s t i n g , C a p i t a l , a n d F i n a n c i n g A c t i v i t i e s : C o n t r i b u t i o n s o f c a p i t a l a s s e t s f r o m g o v e r n m e n t a n d o t h e r s - $ 1 , 1 0 7 $ 24 7 $ - $ - $ 1 5 8 $ 2 2 6 $ 1, 7 3 8 $ 23 $ C o n t r i b u t i o n s o f c a p i t a l a s s e t s t o g o v e r n m e n t a n d o t h e r s - $ - $ - $ - $ - $ - $ - $ - $ 22 $ Th 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 a r e a n i n t e g r a l p a r t o f t h i s s t a t e m e n t . CI T Y O F I O W A C I T Y , I O W A Bu s i n e s s - t y p e A c t i v i t i e s - E n t e r p r i s e F u n d 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 ) Fo r t h e Y e a r E n d e d J u n e 3 0 , 2 0 1 3 PR O P R I E T A R Y F U N D S ST A T E M E N T O F C A S H F L O W S ( c o n t i n u e d ) 51 Agency Funds Assets Equity in pooled cash and investments 145$ Total assets 145$ Liabilities Accounts payable 6$ Due to agency 139 Total liabilities 145$ The notes to the financial statements are an integral part of this statement. June 30, 2013 (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2013 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations), 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 Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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 position, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its “measurement focus.” The government-wide financial statements 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. 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. 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. The Community Development Block Grant Fund accounts for revenue from the U.S. Department of Housing and Urban Development’s Community Development Block Grant programs. The Other Shared Revenue and Grants Fund accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The 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. The Debt Service Fund accounts for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City reports the following major proprietary funds: The 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. The Transit Fund is used to account for the operation and maintenance of the public transportation system. 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. 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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 statements 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. The funds in this category are Project Green, which accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City, and the Library Foundation, which accounts for donations that are made to support the library development office. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of landfill closure and post-closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are processed. Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and non-restricted investments with a maturity of three months or less when purchased are considered cash equivalents. 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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. 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 Transit Fund, Water Fund, and the Equipment Maintenance Fund. Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on the FIFO method. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, water mains, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City follows the policy of not requiring capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for buildings and improvements, and $5,000 for equipment assets. Such assets are recorded at original purchase cost or at 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 10 – 50 years Vehicles 2 – 20 years Other equipment 5 – 30 years 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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. Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 7). Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 of each year to become effective July 1, and constitutes the City’s appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business-type/enterprise b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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. 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 $88,101,593 in revenues and other financing sources and by $147,434,594 in expenditures and other financing uses. Appropriations, as adopted or amended, lapse at the end of the fiscal year. As allowed by GASB Statement No. 41, Budgetary Comparison Schedules – Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund’s purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. Classification of Fund Balances Fund balances for the governmental funds are reported in classifications based on the nature of any limitations requiring the use of resources for specific purposes (see Note 9). 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 2. Compliance and Accountability At June 30, 2013 the Community Development Block Grant Fund reported a deficit balance of $8,000. The deficit is due to deferred revenue from the Department of Housing and Urban Development (HUD). The City anticipates receiving these funds from HUD. 3. Cash and Pooled Investments The City’s deposits in banks at June 30, 2013 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. 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 $16,324,851 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). 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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. 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2013, consisted of the following: Interfund balances at June 30, 2013, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans, land and negative cash balance funding. $828,789 of the $859,658 advances to the Nonmajor Enterprise Funds and $86,039 of the $141,362 advance to the Transit Fund are not expected to be repaid within the next year. The $148,113 of the advance to the Community Development Block Grant Fund is expected to be repaid within the next year. $162,888 of the $174,769 advance to the Other Shared Revenue and Grants Fund is 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. Community Development Debt General Block Grant Service Sanitation Total Advances to: Community Development 148,113 $ - $ - $ - $ 148,113 $ Block Grant Other Shared Revenue and Grants - - 174,769 - 174,769 Housing Authority - 18,000 - - 18,000 Transit - - - 141,363 141,363 Nonmajor Enterprise - - - 859,658 859,658 Total 148,113 $ 18,000 $ 174,769 $ 1,001,021 $ 1,341,903 $ Advances from 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Interfund transfers for the year ended June 30, 2013, consisted of the following: (continued) Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. In the fund financial statements, total transfers in and transfers out of $39,683,000 are less than total transfers of $40,365,991 because of the treatment of transfers of capital assets to and from the governmental activities capital assets. During the year, construction in process related to general government with a value of $22,036 was transferred to governmental activities capital assets from Information Technology. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Information Technology did report a disposal for the capital resources given. Also during the year, a capital asset related to public safety with a value of $3,160 was transferred from governmental activities capital assets to Equipment. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Equipment did report capital contributions for the capital resources received. Other Capital Community Shared Projects Employee Development Revenue and Other Nonmajor General Benefits Block Grant Grants Construction Governmental Parking Transfer to: General -$ 8,705,258$ -$ 122,242$ 317,623$ -$ -$ Debt service 266,650 - - - 19,436 - - Other shared revenue and grants 12,758 425,659 - - - - - Capital Projects Other Construction 1,054,258 - 330,000 2 - - 45,484 Nonmajor governmental 209,729 - - 1,008,182 9,169,280 130,762 - Wastewater treatment 7,116,491 - - 12,263 138,805 54,636 - Water 1,983 - - - 169,708 232,026 - Housing Authority - - 4,787 - - - - Transit 2,754,940 - - - - - 156,267 Nonmajor enterprise 98,813 - - - 2,008,203 440,170 - Internal Service 78,090 - - 26,800 583,744 - 22,060 Total Transfer to 11,593,712$ 9,130,917$ 334,787$ 1,169,489$ 12,406,799$ 857,594$ 223,811$ Transfer from 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 During the year, construction in progress related to the installation of citywide video surveillance systems with a value of $20,338 was transferred from governmental activities capital asset to Information Technology. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Information Technology did report capital contributions for the capital resources received. Also during the year, construction in progress related to construction along 420th Street with a value of $659,871 was transferred from governmental activities capital asset to Wastewater Treatment. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Wastewater Treatment did report capital contributions for the capital resources received. Wastewater Housing Nonmajor Total Treatment Water Sanitation Authority Transit Enterprise Transfer from 23,784$ 49,812$ -$ 43,000$ -$ 66,892$ 9,328,611$ - - - - - - 286,086 - - - - - - 438,417 606,414 - 8,836 3,736 6,072 4,620 2,059,422 711,346 1,406,165 20,020 - - 429,428 13,084,912 - - - - - - 7,322,195 224,000 - 56,000 - - 209,632 893,349 - - - - - - 4,787 - - - - - - 2,911,207 - - - - - - 2,547,186 - 25,000 70,755 - - - 806,449 1,565,544$ 1,480,977$ 155,611$ 46,736$ 6,072$ 710,572$ 39,682,621 Transfers from governmental activities capital assets to internal service funds 23,499 Transfers to governmental activities capital assets from internal service funds 22,036 Transfers from governmental activities capital assets to enterprise funds 659,871 40,365,991$ Transfer from 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 5. Capital Assets Capital asset activity for the year ended June 30, 2013, was as follows: Beginning July 1, 2012 (as Restated) Acquisitions and Transfers Disposals and Transfers Balance June 30, 2013 Governmental activities: Capital assets, not being depreciated: Land 22,333,177$ 448,224$ - $ 22,781,401$ Construction in progress 12,818,641 13,058,595 2,599,111 23,278,125 Total capital assets, not being depreciated 35,151,818 13,506,819 2,599,111 46,059,526 Capital assets, being depreciated: Buildings 51,829,704 1,992,086 40,000 53,781,790 Improvements other than buildings 6,346,047 267,227 - 6,613,274 Machinery and equipment 38,271,825 3,661,920 1,228,735 40,705,010 Infrastructure 111,719,873 2,621,448 - 114,341,321 Total capital assets being depreciated 208,167,449 8,542,681 1,268,735 215,441,395 Less accumulated depreciation for: Buildings 16,310,408 2,406,299 - 18,716,707 Improvements other than buildings 2,242,817 250,153 - 2,492,970 Machinery and equipment 24,593,789 3,160,645 1,252,285 26,502,149 Infrastructure 29,078,366 2,479,611 31,139 31,526,838 Total accumulated depreciation 72,225,379 8,296,708 1,283,424 79,238,664 Total capital assets, being depreciated, net 135,942,070 245,973 (14,689) 136,202,731 Governmental activities capital assets, net 171,093,888$ 13,752,792$ 2,584,422$ 182,262,257$ 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Beginning July 1, 2012 (as Restated) Acquisitions and Transfers Disposals and Transfers Balance June 30, 2013 Business-type activities: Capital assets, not being depreciated: Land 28,516,095$ -$ 20,091$ 28,496,004$ Construction in progress 16,128,436 39,286,700 3,818,292 51,596,844 Total capital assets, not being depreciated 44,644,531 39,286,700 3,838,383 80,092,848 Capital assets, being depreciated: Buildings 141,312,033 756,077 192,546 141,875,564 Improvements other than buildings 10,559,851 16,131 - 10,575,982 Machinery and equipment 31,027,767 2,241,488 27,322 33,241,933 Infrastructure 205,637,129 6,175,769 - 211,812,898 Total capital assets being depreciated 388,536,780 9,189,465 219,868 397,506,377 Less accumulated depreciation for: Buildings 58,140,040 3,606,058 150,964 61,595,134 Improvements other than buildings 4,445,983 444,267 - 4,890,250 Machinery and equipment 20,284,611 1,439,648 27,322 21,696,937 Infrastructure 67,355,271 4,497,448 - 71,852,719 Total accumulated depreciation 150,225,905 9,987,421 178,286 160,035,040 Total capital assets, being depreciated, net 238,310,875 (797,956) 41,582 237,471,337 Business-type activities capital assets, net 282,955,406$ 38,488,744$ 3,879,965$ 317,564,185$ Depreciation expense was charged to functions as follows: Governmental activities: Public safety 951,071$ Public works 2,299,439 Culture and recreation 2,039,376 Community and economic development 39,577 General government 262,541 Internal service funds 1,537,172 Total depreciation expense - governmental activities 7,129,177$ Business-type activities: Parking 786,683$ Transit 1,040,925$ Wastewater treatment 3,912,369 Water 2,168,711 Sanitation 415,434 Housing authority 128,284 Nonmajor enterprise 1,535,015 Total depreciation expense - business-type activities 9,987,421$ 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2013, was as follows: General Obligation Bonds Various issues of general obligation bonds totaling $58,550,000 are outstanding as of June 30, 2013. The bonds have interest rates ranging from 0.5% to 5.6% and mature in varying annual amounts ranging from $105,000 to $1,545,000 per issue, with the final maturities due in the year ending June 30, 2022. 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. Due Within July 1, 2012 Issues Retirements June 30, 2013 One Year Governmental activities: General obligation bonds $ 73,825,000 $ - $ 16,465,000 $ 57,360,000 $ 10,275,000 Plus: Unamortized Premium 400,654 - 71,851 328,803 74,104 Total general obligation bonds 74,225,654 - 16,536,851 57,688,803 10,349,104 Revenue bonds - 2,655,000 - 2,655,000 - Less: Unamortized Discounts - 42,480 2,124 40,356 2,124 Total revenue bonds - 2,612,520 (2,124) 2,614,644 (2,124) $ 74,225,654 $ 2,612,520 $ 16,534,727 $ 60,303,447 $ 10,346,980 Business-type activities: General obligation bonds $ 1,495,000 - $ $ 305,000 $ 1,190,000 $ 300,000 Less: Unamortized Discounts 11,527 - 3,842 7,685 3,842 Total general obligation bonds 1,483,473 - 301,158 1,182,315 296,158 Revenue bonds 68,185,000 - 6,225,000 61,960,000 5,115,000 Plus: Unamortized Premium 874,307 - 69,569 804,738 81,221 Total revenue bonds 69,059,307 - 6,294,569 62,764,738 5,196,221 $ 70,542,780 $ - $ 6,595,727 $ 63,947,053 $ 5,492,379 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 As of June 30, 2013, the City of Iowa City was authorized to issue general obligation bonds totaling $7,750,000 that had not been issued. Annual debt service requirements to maturity for general obligation bonds are as follows: Revenue Bonds As of June 30, 2013, the following unmatured revenue bond issues are outstanding: Wastewater Taxable Urban Parking Treatment Water Renewal Original issue amount $ 9,110,000 $ 48,020,000 $ 21,815,000 $ 2,655,000 Interest rates 3.0% to 5.0% 3.0% to 5.0% 1.5% to 4.5% 1.0% to 3.9% Annual maturities $ 530,000 to $ 450,000 to $ 385,000 to $ 130,000 to $ 770,000 $ 2,205,000 $ 835,000 $ 200,000 Amount outstanding $ 7,675,000 $ 35,205,000 $ 19,080,000 $ 2,655,000 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 Principal Interest Principal Interest 2014 10,275,000 1,733,030 300,000 44,325 2015 10,135,000 1,429,063 300,000 33,225 2016 9,575,000 1,119,055 295,000 22,125 2017 7,975,000 822,825 295,000 11,062 2018 7,120,000 586,544 - - 2019-2023 12,280,000 708,356 - - Total 57,360,000$ 6,398,873$ 1,190,000$ 110,737$ Governmental Activities Business-type Activities Fiscal Year Ending June 30 Principal Interest Principal Interest 2014 - 75,335 5,115,000 2,376,928 2015 - 75,335 5,290,000 2,206,665 2016 130,000 75,335 5,500,000 2,015,284 2017 130,000 74,035 5,670,000 1,807,671 2018 135,000 72,345 5,900,000 1,588,927 2019-2023 710,000 321,385 27,255,000 4,342,583 2024-2028 800,000 223,125 7,230,000 457,366 2029-2033 750,000 72,740 - - Total 2,655,000$ 989,635$ 61,960,000$ 14,795,424$ Governmental Activities Business-type Activities 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The revenue bond ordinances required that wastewater treatment, parking system, water revenues, and urban renewal tax revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account 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, Water Revenue and Taxable Urban Renewal 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 and $5,000 per month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. On November 29, 2012, the City of Iowa City issued taxable urban renewal revenue bonds in the amount of $2,655,000. The bonds were issued to finance costs of aiding in the planning, undertaking and carrying out of an urban renewal project. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2013, are comprised of the following issues: Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2013 General Obligation Bonds: Multi-Purpose Mar. 2005 7,020,000 3.0 - 4.0 6/15 1,610,000$ Multi-Purpose Jun. 2006 6,265,000 3.625 - 4.0 6/16 2,190,000 Multi-Purpose Jun. 2006 1,000,000 5.5 - 5.6 6/16 365,000 Refunded Water Construction (1)Sep. 2006 3,350,000 3.6 - 3.75 6/17 1,190,000 Multi-Purpose May 2007 8,870,000 3.75 6/17 3,950,000 Multi-Purpose June 2008 9,150,000 3.25 - 3.75 6/18 4,960,000 Refunded Multi-Purpose (2) Oct. 2008 17,005,000 3.0 - 3.75 6/18 7,395,000 Multi-Purpose June 2009 6,685,000 2.5 - 4.0 6/19 4,220,000 Taxable- Housing Improvements June 2009 505,000 1.5 - 3.0 6/14 105,000 Refunded Multi-Purpose (3) June 2009 5,840,000 2.0 - 4.0 6/16 2,640,000 Multi-Purpose Aug. 2010 7,420,000 2.0 - 2.75 6/20 5,250,000 Multi-Purpose June 2011 7,925,000 2.0 - 3.625 6/21 6,425,000 Refunded Multi-Purpose and Library Construction (4) June 2011 10,930,000 2.0 - 3.625 6/21 9,635,000 Multi-Purpose June 2012 9,070,000 2.0 - 2.25 6/22 8,305,000 Taxable-Urban Renewal June 2012 620,000 0.5 - 0.6 6/14 310,000 Total General Obligation Bonds 58,550,000$ Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2012 Revenue Bonds: Refunded Parking Bonds (5) Nov. 2009 9,110,000$ 3.0 - 5.0 7/24 7,675,000$ Refunded Wastewater Treatment Bonds (6) Oct. 2008 24,280,000 3.0 - 5.0 7/22 17,880,000 Refunded Wastewater Treatment Bonds (7) May 2009 8,660,000 3.5 - 5.0 7/25 7,675,000 Refunded Wastewater Treatment Bonds (8) Apr. 2010 15,080,000 3.0 - 4.0 7/20 9,650,000 Refunded Water Bonds (9) Oct. 2008 7,115,000 3.0 - 4.375 7/24 5,700,000 Refunded Water Bonds (10) May 2009 9,750,000 4.0 - 4.5 7/25 8,430,000 Refunded Water Bonds (11) June 2012 4,950,000 1.5 - 2.1 7/22 4,950,000 Taxable Urban Renewal Nov. 2012 2,655,000 1.0 - 3.9 6/32 2,655,000 Total Revenue Bonds 64,615,000$ 123,165,000$ 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 (1) 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 refunded the November 1997 Water Construction General Obligation Bonds. (2) This bond issue refunded the April 1998, March 1999, and July 2000 General Obligation Bonds. (3) This bond issue refunded the June 2001 General Obligation Bonds. (4) This bond issue refunded the May 2002 General Obligation Bonds. (5) This bond issue refunded the December 1999 Parking Revenue Bonds. (6) This bond issue refunded the March 1996, May 1997, and January 1999 Wastewater Revenue Bonds. (7) This bond issue refunded the October 2000 Wastewater Revenue Bonds. (8) This bond issue refunded the December 2001 and April 2002 Wastewater Revenue Bonds. (9) This bond issue refunded the May 1999 Water Revenue Bonds. (10) This bond issue refunded the December 2000 Water Revenue Bonds. (11) This bond issue refunded the October 2002 Water Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds, Facility Refunding Revenue Bonds, and Midwestern Disaster Area Revenue Bonds to provide financial assistance to private sector entities for the acquisition, construction, and renovation of industrial and commercial facilities deemed to be in the public interest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2013, there were four series of Industrial Development Revenue Bonds, Facility Refunding Revenue Bonds, and Midwest Disaster Area Revenue Bonds outstanding, with an aggregate principal amount payable of $42,122,114. Debt Legal Compliance Legal Debt Margin: As of June 30, 2013, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows (amounts expressed in thousands): Assessed valuation: Real property $ 4,531,989 Utilities 83,538 Total valuation $ 4,615,527 Debt limit, 5% of total assessed valuation $ 230,776 Debt applicable to debt limit: General obligation bonds 58,550 Legal debt margin $ 172,226 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 7. Other Long-term Liabilities Notes Payable 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. Employee Vested Benefits For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. Note Payable activity for the year ended June 30, 2013, was as follows: Due Within July 1, 2012 Issues Retirements June 30, 2013 One Year Governmental activities: $ 211,000 - $ - $ 211,000$ - $ Changes in Long-Term Liabilities - Employee Vested benefits Employee Vested Benefits activity for the year ended June 30, 2013, was as follows: July 1, 2012 Due Within (Restated) Issues Retirements June 30, 2013 One Year Governmental activities: $ 2,027,799 1,190,536$ 1,107,721$ 2,110,614$ 1,160,900$ Business-type activities: $ 763,444 414,166$ 434,910$ 742,700$ 427,285$ 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Landfill Closure / 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, 2013, is $6,404,915, which is based on 45.72% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $7,604,085 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, 2025. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2013, was determined by a licensed professional engineer and approximated at $14,009,000. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2013. These amounts are based on an estimated post-closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and post-closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post-closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2013, the Sanitation Fund had $15,260,663 in related equity in pooled cash and investments, at fair value designated for satisfaction of closure and post-closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post-closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post-closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs Landfill Closure Post-closure care activity for the year ended June 30, 2013, was as follows: Due Within July 1, 2012 (as Restated) Issues Retirements June 30, 2013 One Year Business-type activities: $ 6,116,618 $ $ 288,297 $ 6,404,915 -$ 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Other Post Employment Benefits Changes in Long-Term Liabilities - Other Post Employment Benefits July 1, 2012 Net OPEB Obligation (as Restated) Current Year June 30, 2013 Governmental activities: $ 1,883,268 $ 478,989 $ 2,362,257 Business-type activities: $ 803,530 $ 139,839 $ 943,369 The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other Than Pensions during the year ended June 30, 2009. Plan Description: The City operates one self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. All full-time employees who retire or terminate/resign and their eligible dependents are offered the following post-employment benefit options: Health insurance and dental insurance – The option of continuing with the City’s health insurance plan at the individual’s expense. These benefits cease upon Medicare eligibility. Life insurance – The option of converting the employee’s City-paid policy to an individual policy at the individual’s expense with the City’s life insurance carrier. Long-term disability – For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee’s City-paid group policy to a personal policy at the individual’s expense with the City’s long-term disability insurance carrier. The above options, while at the individual’s own expense, are included within the City’s overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Funding Policy: The plan member’s contribution requirements are established and may be amended by the City. The City currently finances the benefit plans on a pay-as-you-go basis. 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Annual OPEB Cost and Net OPEB Obligation: The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the City’s annual OPEB cost for the year ended June 30, 2013, the amount actually contributed to the plans, and changes in the City’s net OPEB obligation: Annual required contribution $ 643,988 Interest on net OPEB obligation 94,038 Adjustment to annual required contribution (89,560) Annual OPEB costs 648,466 Contributions made (29,638) Increase in net OPEB obligation 618,828 Net OPEB obligation beginning of year 2,686,798 Net OPEB obligation end of year $3,305,626 For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding requirements and the actual contributions for the year ended June 30, 2013. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plans and the net OPEB obligation as of June 30, 2013 are summarized as follows: Percentage of Annual Annual OPEB Cost Net OPEB Year Ended OPEB Cost Contributed from City Obligation June 30, 2011 $ 598,776 14.7% $2,257,342 June 30, 2012 $ 600,965 28.5% $2,686,798 June 30, 2013 $ 648,466 4.6% $3,305,626 Funded Status and Funding Progress: As of July 1, 2012, the most recent actuarial valuation date for the period July 1, 2012 through June 30, 2013, the actuarial accrued liability was $7,163,715, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $7,163,715. The covered payroll (annual payroll of active employees covered by the plans) was $34,992,423 and the ratio of the UAAL to covered payroll was 20.5%. As of June 30, 2013, there were no trust fund assets. Actuarial Methods and Assumptions: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumption about future employments, mortality, and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. Actuarial calculations of the OPEB plan reflect a long-term perspective. 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The required schedule of funding progress, presented as required supplementary information in the section following the Notes to Financial Statements, will present multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. As of the July 1, 2012 actuarial valuation date, the actuarial cost method used is the entry-age normal method. The actuarial assumption includes a 3.5% discount rate and an inflation rate of 3% per annum. The projected annual medical trend rate is 8.5%. The ultimate medical trend rate is 5.0%. The medical trend rate is decreased to 8.0% for year two and then reduced by 0.5% each year until reaching the 5.0% ultimate trend rate. The projected annual dental trend rate is 5.0%. The ultimate dental trend rate is 4%. The dental trend rate is decreased to 4.75% for year two and then reduced by 0.25% each year until reaching the 4% ultimate trend rate. Mortality rates for active employees are from the RP-2000 Employee Table (Male and Female) Projected to 2013 (Projection Scall AA). For retirees, mortality rates are from the RP-2000 Healthy Annuitant Table (Male and Female) Projected to 2013 (Projection Scale AA). Annual retirement and termination probabilities were developed from the retirement probabilities from the MFPRSI and IPERS pension plan turnover tables, adjusted to be consistent with expected first fiscal year retirements. Projected claim costs of the health and dental plans are $821.13 per month. The salary increase rate was assumed to be 3.5% per year. The UAAL is being amortized as a level percentage of projected payroll expenses over 30 years on an open basis. 8. Short Term Debt During FY13, the City entered into additional multiple short term loans totaling $976,826 and repaid multiple short term loans totaling $1,243,826. The outstanding loans mature one year from the date of the loan and bear interest rates ranging from 2% to 3.25%. The loans were used to fund the acquisition and rehabilitation of single family homes as part of the UniverCity Neighborhood Partnership Program (UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The short term loans have been repaid and will be repaid with the proceeds from the sale of the rehabilitated homes. Notes Payable activity for the year ended June 30, 2013, was as follows: Due Within July 1, 2012 Issues Retirements June 30, 2013 One Year Governmental activities: $ 805,000 976,826 $ 1,243,826 $ 538,000$ 538,000 $ 75 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The short term loans have been repaid and will be repaid with the proceeds from the sale of the rehabilitated homes. 9. Fund Equity Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. • The Nonspendable classification contains amounts not in spendable form or legally or contractually required to be maintained intact. • Restricted amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. • Committed amounts can only be used for specific purposes imposed by formal action of the government’s highest level of decision-making authority. The highest level of decision-making authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance commitment. • Amounts intended to be used for specific purposes are Assigned. Assignments should not cause deficits in the Unassigned fund balance. The Finance Director has been delegated authority by the City Council through a resolution to assign amounts to be used for specific purposes. • Unassigned fund balance is the residual classification for the General Fund. The City would use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned resources first to defer the use of these other classified funds. 76 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 10. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. During the year ended June 30, 2013 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 $500,000 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 $21,000,000 annual aggregate of losses paid. Settled claims have not exceeded this commercial coverage in any of the past twenty five fiscal years. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. Components of Fund Balance Community Other Development Shared Other Employee Block Revenue and Other Debt Governmental General Benefits Grant Grants Construction Service Funds Total Nonspendable: Perpetual Care Principal 69,000$ -$ -$ -$ -$ -$ -$ 69,000$ Total Nonspendable 69,000 - - - - - - 69,000 Restricted for: Public Safety 630,118 - - - - - - 630,118 Local Option Sales Tax 25,006,448 - - - - - - 25,006,448 Debt Service - - - - - 7,265,326 - 7,265,326 GO Bond Projects - - - - 8,436,272 - 7,542,654 15,978,926 State Funding - - - 2,913,535 - - - 2,913,535 Grant Agreement - - - - - - - - Public Safety Employee Benefits - 1,791,164 - - - - - 1,791,164 Other Restricted 52,038 - - - - - 160,504 212,542 Total Restricted 25,688,604 1,791,164 - 2,913,535 8,436,272 7,265,326 7,703,158 53,798,059 Assigned to: Library Programs 647,681 - - - - - - 647,681 Senior Center Programs 41,269 - - - - - - 41,269 Replacement and Acquisition Reserves 1,021,162 - - - - - - 1,021,162 Other Assigned 33,405 - - - - - - 33,405 Total Assigned 1,743,517 - - - - - - 1,743,517 Unassigned:17,113,181 - (7,695) (280,684) (4,194,174) (737,850) (624,068) 11,268,710 Total Fund Balances 44,614,302$ 1,791,164$ (7,695)$ 2,632,851$ 4,242,098$ 6,527,476$ 7,079,090$ 66,879,286$ 77 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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, 2013 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, 2013 and 2012 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2011 – 2012 $ 700,000 $ 691,000 $ 207,000 $ 1,184,000 2012 – 2013 1,184,000 1,616,000 1,177,000 1,623,000 Also, the City is partially self-insured, through stop-loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop-loss coverage for claims in excess of $125,000 per employee with an aggregate stop-loss of $8,406,094. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund’s claims liability amount for health care coverage for the years ended June 30, 2013 and 2012 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2011 – 2012 $ 728,000 $ 6,147,000 $ 6,159,000 $ 716,000 2012 – 2013 716,000 5,480,000 5,687,000 509,000 78 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 11. Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2013 are as follows: The total significant encumbrances as of June 30, 2013 are as follows: Project Amount Bridge, street and traffic Paving and bridge construction, control construction engineering design and consulting 7,657,330$ Other construction Public works, culture & recreation, Economic Dev, Fire & Police, construction 1,927,869 Wastewater South wastewater plant expansion 10,488,259 Sanitation Landfill cell reconstruction 923,725 Airport Runway grading and paving 626,171 21,623,354$ Fund Project Amount Other Construction Financial System, library equipment and police equipment 587,636$ 587,636$ Fund 79 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 12. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City’s experience that such actions are settled for amounts substantially less than claimed amounts. The City’s management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 13. 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, 2013, members contributed 9.40%. 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 26.12% of earnable compensation of each member in FY 2013, 24.76% of earnable compensation in FY 2012, and 19.9% of earnable compensation in FY 2011. The contributions paid by the City for the years ended June 30, 2011, 2012, and 2013, were $1,826,791, $2,232,637, and $2,428,631.85 respectively, and was equal to the required contributions for each year. 80 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 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 eighteen or older, 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 seven years of service or after attaining the age of 55. Full benefits are equal to 60% of the average of the highest five years of covered wages times years of service divided by 30. Plan members are required to contribute 5.78% of their annual covered salary and the City is required to contribute 8.67% of annual covered payroll. Contribution requirements are established by state statute. The City’s contributions to IPERS for the years ended June 30, 2011, 2012, and 2013, were $1,969,422, $2,245,326, and $2,423,438 respectively, and were equal to the required contributions for each year. 14. Additional Revenue Bond Disclosures 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 70,133 people and has 26,150 customers. The average daily use for fiscal year 2013 was approximately 5.54 million gallons per day (MGD). A peak flow of over 8.6 MGD was experienced during the summer of 2012. Water Sources: The primary source of water for the City is the alluvial aquifer collector wells along the Iowa River. Four collector wells can provide approximately 10.5 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; three Siluran aquifer wells which can provide 1.0 MGD; a sand pit that can provide 1.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 17.5 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 carbon 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. 81 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Distribution System: The water flows through approximately 268 miles of water mains and includes over 25,000 service connections. The distribution piping consists of cast iron, ductile and PVC main that ranges in size from 2” to 30”. The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,330 public and private 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, 2012. 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: 2004 - 5% 2005 0% 2006 0% 2007 - 5% 2008 0% 2009 0% 2010 0% 2011 0% 2012 0% 2013 0% 82 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2013, 2012, and 2011. 2013 2012 2011 Operating Revenues: Charges for services 8,583 $ 8,419 $ 8,054 $ Miscellaneous 174 26 42 Total operating revenues 8,757 8,445 8,096 Operating Expenses: Personal services 2,633 2,554 2,407 Commodities 1,609 967 929 Services and charges 2,106 2,132 2,128 6,348 5,653 5,464 Depreciation 2,169 2,275 2,230 Total operating expenses 8,517 7,928 7,694 Operating income 240 517 402 Nonoperating Revenues (Expenses): Gain ( Loss) on disposal of capital assets - (10) - Insurance Recoveries - - 2 Operating Grants 442 - - Interest income 143 204 256 Interest expense (731) (964) (1,032) Total nonoperating revenues (expenses)(146) (770) (774) Income before capital contributions and transfers 94 (253) (372) Capital contributions 494 1,057 973 Transfers in 893 478 795 Transfers out (1,481) (110) (336) Change in net assets - 1,172 1,060 Net Assets, Beginning 63,274 62,102 61,042 Net Assets, Ending 63,274 $ 63,274 $ 62,102 $ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS WATER SYSTEM STATEMENT OF REVENUES, EXPENSES 83 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2013 and the budget for the fiscal year ended June 30, 2014 on a cash basis. The following table summarizes the Water System funds on hand for the fiscal years ended June 30, 2013, 2012, and 2011. WATER SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) 2013 2012 2011 Operating Funds $ 7,410 $ 8,284 $ 9,607 Restricted and Designated Funds 4,631 4,260 4,665 Total Funds on Hand $ 12,041 $ 12,544 $ 14,272 FY14 Actual Budget Percentage Budget Charges for services 8,673 $ 8,185 $ 105.96% 8,226 $ Interest income 144 141 102.13%148 Miscellaneous 174 39 446.15%12 Operating grants 1,395 2,284 61.08%- Transfers from other funds 355 336 105.65%- Bond sales - - 0.00%- Total Receipts 10,741$ 10,985$ 97.78%8,386$ Personal services 2,714 $ 2,640 $ 102.80% 2,690 $ Commodities 515 645 79.84%603 Services and charges 2,162 2,096 103.15% 2,009 Capital outlay 2,408 4,448 54.14% 1,244 Transfer to capital project funds 1,406 1,908 73.69%- Transfers to other funds 43 - 4300.00%- Operating subsidy 24 24 100.00%- Debt service payments 7,411 8,216 90.20% 2,329 Total Disbursements 16,683 $ 19,977 $ 83.51% 8,875 $ WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2013 (amounts expressed in thousands) 84 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Sewer System The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 295 miles of sanitary sewers, 15 sanitary sewer lift stations, 2 storm water pumping stations, and 2 treatment plants. There are a total of 25.40 (FTE) employees who work in the Wastewater Division. This division serves 70,133 people and has over 24,000 customers. The average daily combined treatment flow for 2013 was 9.84 million gallons per day (MGD). The North Plant was constructed in 1935 and the South Plant was completed in 1990 and upgraded in 2002. The connecting of the North and South Plants was completed in 1998. The City has the capability to divert all wastewater treatment to the South Plant and control all operations remotely through computer systems. The combined wastewater treatment system design has a maximum daily treatment capacity of 41.10 MGD. Both plants are in compliance with federal clean water standards. The City is utilizing federal and state grants to fund a flood recovery and mitigation project to decommission the North Wastewater Plant through expansion of the South Wastewater Plant. 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, 2012. 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: 2004 0% 2005 0% 2006 0% 2007 8% 2008 0% 2009 5% 2010 0% 2011 0% 2012 0% 2013 0% 85 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Financial Information: The following table summarizes the results of operations for the Sewer System for the fiscal years ended June 30, 2013, 2012, and 2011. 2013 2012 2011 Operating Revenues: Charges for services 12,832 $ 12,670 $ 12,836 $ Miscellaneous 102 145 63 Total operating revenues 12,934 12,815 12,899 Operating Expenses: Personal services 1,938 1,993 1,961 Commodities 854 954 895 Services and charges 2,548 2,716 2,621 5,340 5,663 5,477 Depreciation 3,912 3,952 4,017 Total operating expenses 9,252 9,615 9,494 Operating income 3,682 3,200 3,405 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets - (12) (40) Operating grants - - - Interest income 367 360 382 Interest expense (1,400) (1,564) (1,704) Total nonoperating revenues (expenses) (1,033) (1,216) (1,362) Income before capital contributions and transfers 2,649 1,984 2,043 Capital contributions 30,841 3,223 2,394 Transfers in 7,322 2,454 1,716 Transfers out (1,566) (359) (171) Change in net assets 39,246 7,302 5,982 Net Assets, Beginning 92,032 84,730 78,748 Net Assets, Ending 131,278$ 92,032$ 84,730$ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES 86 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2013 and the budget for the fiscal year ended June 30, 2014 on a cash basis. The following table summarizes the Sewer System funds on hand for the fiscal years ended June 30, 2013, 2012, and 2011. FY14 Actual Budget Percentage Budget Charges for services 12,890$ 12,759$ 101.03%12,549$ Interest income 291 301 96.68%276 Miscellaneous 103 57 180.70%170 Capital grants 23,493 12,808 183.42%15,051 Local option sales tax 7,116 12,116 58.73%- Bond sales - - 0.00%7,000 Total Receipts 43,893$ 38,041$ 115.38%35,046$ Personal services 2,250$ 2,374$ 94.78%2,295$ Commodities 580 659 72.11%683 Services and charges 3,146 4,363 88.01%2,492 Capital outlay 30,665 26,576 115.39%26,535 Transfer to capital project funds 1,542 1,573 98.03%- Operating subsidy 24 24 100.00%- Debt service payments 6,412 6,412 100.00%4,724 Total Disbursements 44,619$ 41,981$ 106.28%36,729$ SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2013 (amounts expressed in thousands) 2013 2012 2011 Operating Funds 15,655$ 14,551$ 12,882$ Restricted and Designated Funds 10,074 11,905 12,002 Total Funds on Hand 25,729$ 26,456$ 24,884$ SEWER SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) 87 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Parking System The Parking System currently consists of approximately 4,084 parking spaces located at various parking facilities in the central business district of the City. T h e P arking Division of the Iowa City Transportation Services Department oversees the operation of parking garages, parking lots, and on- street (metered) parking. Parking Services enforces parking regulation in the central business district, while the Police Department enforces parking regulations in residential areas. Recognizing that there is a high demand for parking in downtown Iowa City, Parking Services promotes turnover of on-street metered parking spaces in the core of the downtown. Customers with longer-term needs are encouraged to use the garages or on streets in outlying areas. There are a total of 29.25 (FTE) employees who work in the Parking Division. Parking System Utilization, Demand and Other Considerations: The City tracks Parking System utilization by the hour in each of the cashiered facilities. During peak hours, the occupancy rate regularly runs between 85% to 99% depending on the time of year and the time of day. Peak hours for the Parking System are 10:00 am through 3:00pm with high occupancy rates regularly maintained through 5:30 pm daily. In addition to hourly parking, the Parking System offers monthly permit parking. The Parking System currently has 1,449 permit holders. The largest customer for the monthly permit parking is the University of Iowa with 615 permits. There are currently over 623 people on the Parking System's waiting lists for monthly permit parking. In addition to monthly and permit parking, the Parking System has parking space contracts with the Sheraton Hotel in the amount of $8,000.00 per month and with the Hotel Vetro in the amount of $2,000.00 per month. The City regularly evaluates parking demand. As development has continued to move south of Burlington Street and the central business district, the need for additional spaces in this area has increased. The Applied Real Estate Analysis ("AREA"), in conjunction with Desman Associates, estimates that there is demand for 600 additional parking spaces in downtown Iowa City. The underlying economic growth and employment base of the City continues to contribute to increased demand. Parking System Rates and Charges: Rates for the Parking System are set by the City Council. Parking System rates are reviewed annually. The rates vary by facility and the hourly and monthly rates and charges as approved by the City Council are listed below by facility. These rates include the most recent hourly rate adjustments that were approved by the City Council on March 21, 2006 and became effective July 1, 2006 and the proposed monthly permit rate adjustments that were approved by the City Council on June 2, 2009 and became effective July 1, 2009. 88 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Parking Facilities: The Parking System consists of 3 cashiered garages and 1 unattended garage, as well as, various parking lots and on-street metered parking in the Central Business District. The City completes regular visual inspections of the parking garages to evaluate their current appearance and general condition. The garages are visually inspected for the condition of the main structural elements (columns, girders, beams), parking decks, expansion and control joints, and their coating systems. Based on the most recent inspections, all of the Parking System's facilities are in excellent/good condition. All garages will continue to receive routine inspections and maintenance. A description of each parking facility, their locations, access, the number of spaces, monthly permits, and current rates are as follows: Capitol Street Garage Constructed 1980 Address 220 S. Capitol Street Description Located on a parcel confined by Burlington Street to the south, Capitol Street to the west, Clinton Street to the east and the Old Capitol Town Center to the north. Access This is a cashiered facility with two entry lanes off of Clinton Street; two entry lanes off of Capitol Street; and four exit lanes onto Capitol Street. Spaces 875 Monthly Permits 235 Rates Hourly $0.75 per hour Monthly $80.00 per month Changes in Capitol Street Garage rates over the last ten fiscal years: Hourly Monthly 2004 0% 17% 2005 0% 0% 2006 0% 0% 2007 25% 7% 2008 0% 0% 2009 0% 0% 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 89 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Dubuque Street Garage Constructed 1980 Address 220 S. Dubuque Street Description Located on a parcel confined by Burlington Street to the south, Dubuque Street to the west, Linn Street to the east and the Sheraton Hotel to the north. Access This is a cashiered facility with two entry lanes off of Dubuque Street; one entry lanes off of Linn Street; and two exit lanes onto Dubuque Street. Spaces 625 Monthly Permits 325 Rates Hourly $0.75 per hour Monthly $80.00 per month Changes in Dubuque Street Garage rates over the last ten fiscal years: Hourly Monthly 2004 0% 20% 2005 0% 0% 2006 0% 0% 2007 25% 8% 2008 0% 0% 2009 0% 0% 2010 0% 23% 2011 0% 0% 2012 0% 0% 2013 0% 0% Chauncey Swan Garage Constructed 1993 Address 415 E. Washington Street Description Located on a parcel confined by College Street to the south, Van Buren Street to the east, Gilbert Street to the west and Washington Street to the north. Access This is an automated facility with one entry/exit lane off of College Street; one entry/ exit lane off of Washington Street; and one entry/exit lane through the Recreation Center parking lot onto Burlington Street. Spaces 475 Monthly Permits 400 Rates Hourly $0.60 per hour Monthly $80.00 per month 90 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Changes in Chauncey Swan Garage rates over the last ten fiscal years: Hourly Monthly 2004 0% 22% 2005 0% 0% 2006 0% 0% 2007 20% 9% 2008 0% 0% 2009 0% 0% 2010 0% 17% 2011 0% 14% 2012 0% 0% 2013 0% 0% Tower Place Garage Constructed 2001 Address 335 E. Iowa Avenue Description Located on a parcel confined by Iowa City Senior Center to the south, Gilbert Street to the east, Linn Street to the west and Iowa Avenue to the north. Access This is a cashiered facility with two entry lanes off of Iowa Avenue; three exit lanes onto Iowa Avenue; and secured permit-only entry and exit off of Gilbert Street. Spaces 510 Monthly Permits 315 Rates Hourly $0.75 per hour Monthly $80.00 per month Changes in Tower Place Garage rates over the last ten fiscal years: Hourly Monthly 2004 0% 17% 2005 0% 0% 2006 0% 0% 2007 25% 7% 2008 0% 0% 2009 0% 0% 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 91 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 On-Street Parking Meters: The City operates short-term meters (1-2 hours) concentrated in the core of the downtown. These meters are intended for shopper's use. Each parking meter dial states the maximum time. Longer term meters become more common away from the core downtown area. Meters 1,175 Rates Hourly $0.50 - $0.75 per hour based on proximity to the central business district and usage. Parking Lots: The City operates seven parking lots in the Central Business District. They consist of a mix of permit spaces and metered spaces. Spaces 430 Monthly Permits 204 Rates Hourly $0.50 - $0.75 per hour based on proximity to the central business district and usage. Monthly $60.00 per month Moped Parking: FY12 saw the implementation of a parking permit program for mopeds, scooters, and motorcycles. Spaces were designated throughout the Central Business District to accommodate the use of mopeds and scooters while also removing them from parking in bicycle racks. Spaces 148 Annual Permits 625 Rates Annual $45.00 per year 92 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Financial Information: The following table summarizes the results of operations for the Parking System for the fiscal years ended June 30, 2013, 2012, and 2011. 2013 2012 2011 Operating Revenues: Charges for services 5,043$ 4,743$ 5,234$ Miscellaneous 37 162 104 Total operating revenues 5,080 4,905 5,338 Operating Expenses: Personal services 1,718 1,733 1,662 Commodities 630 107 75 Services and charges 1,201 1,194 1,183 3,549 3,034 2,920 Depreciation 787 815 908 Total operating expenses 4,336 3,849 3,828 Operating income 744 1,056 1,510 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets - (10) - Operating grants - - - Interest income 42 40 51 Interest expense (324) (366) (408) Total nonoperating revenues (expenses)(282) (336) (357) Income before capital contributions and transfers 462 720 1,153 Capital contributions - 4 269 Transfers in - - - Transfers out (224) (16) - Change in net assets 238 708 1,422 Net Assets, Beginning 16,722 16,014 14,592 Net Assets, Ending 16,960$ 16,722$ 16,014$ STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) PARKING SYSTEM 93 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 The following table summarizes the budget and actual figures for the Parking System for the fiscal year ended June 30, 2013 and the budget for the fiscal year ended June 30, 2014 on a cash basis. The following table summarizes the Parking System funds on hand for the fiscal years ended June 30, 2013, 2012, and 2011. PARKING SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) 2013 2012 2011 Operating Funds $ 5,032 $ 5,218 $ 5,928 Restricted and Designated Funds 1,668 1,528 1,521 Total Funds on Hand $ 6,700 $ 6,746 $ 7,449 FY14 Actual Budget Percentage Budget Charges for services 4,623$ 4,500$ 102.73%4,632$ Interest income 47 42 111.90%39 Miscellaneous 290 322 90.06%50 Operating grants - - 0.00%- Transfers from Other Funds - 24 0.00%- Bond sales - - 0.00%- Total Receipts 4,960$ 4,888$ 101.47%4,721$ Personal services 1,697$ 1,881$ 90.22%1,755$ Commodities 62 134 101.09%107 Services and charges 1,210 1,197 46.27%1,270 Capital outlay 647 1,506 42.96%900 Transfer to capital project funds 45 45 0.00%- Interfund Loan Repayment 507 589 86.08%- Debt service payments 839 839 100.00%838 Total Disbursements 5,007$ 6,191$ 80.88%4,870$ PARKING SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2013 (amounts expressed in thousands) 94 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 15. Restatement of Beginning Balances The restatement of fund balances and net assets/net position were due to the following: The Mass Transportation Fund, which was previously recorded in the General Fund, was reclassified as an Enterprise Fund. This eliminated approximately $966,000 from the Employee Benefits tax levy asking, annually. Prior to FY03 the Transit Enterprise Fund continually required funding assistance from the General Fund. In FY03, Transit Operations were transferred to the General Fund to allow the Transit employees benefits to be paid by the Employee Benefit Levy. The Employee Benefit Levy can only be utilized on General Fund and Road Use Tax Fund employee benefits per Iowa Code. In FY06, the Court Street Transportation Center was built and the operating revenues were assigned to Transit per federal grants. Since FY08, the Transit operations in the General Fund have provided surplus revenue for Transit. Restatements of fund balances, net assets/net position previously reported are as follows: (Amounts in thousands) Fund Fund Balances/Net Assets/Net Position, Ending June 30, 2012 as Previously Reported Effect of Reclassification of Mass Transportation Fund Fund Balances/Net Assets/Net Position, Ending June 30, 2012 as Restated General 43,557$ (3,609)$ 39,948$ Capital Projects - Other Construction 20,883$ (37)$ 20,846$ Governmental Activities 209,925$ (20,695)$ 189,230$ Transit -$ 20,695$ 20,695$ Business-type Activities 274,099$ 20,695$ 294,794$ 95 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 16. Correction of an error A prior period adjustment was required in the Sanitation fund. This adjustment was due to the capacity used in calculating the expense and related liability for future closure and post-closure care costs for the landfill. The figure that had been used in the calculation was the tonnage of the developed cells versus the total capacity tonnage of the landfill. 17. Subsequent events On July 16, 2013, the City of Iowa City issued General Obligation Bonds, Series 2013A & 2013B, in the amounts of $7,230,000 and $520,000 respectively. The bonds were issued to finance costs of acquisitions, construction, improvements and installation of capital improvement projects. 18. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented by the City. The statements, which might impact the City’s financial statements, are as follows: Statement No. 65, Items Previously Reported as Assets and Liabilities, issued March 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to establish accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. (Amounts in thousands) Fund Net Position/Net Assets, Ending June 30, 2012 as Previously Reported Effect of Prior Period Adjustment Net Position/Net Assets, Ending June 30, 2012 as Restated Sanitation 25,545$ 6,467$ 32,012$ Business-type Activities After Effect of Reclassification of Mass Transportation Fund 294,794$ 6,467$ 301,261$ Restatement of net position/net assets previously reported are as follows: 96 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2013 Statement No. 66, Technical Corrections – 2012 – an amendment of GASB Statements No. 10 and No. 62, issued March 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Statement No. 67, Financial Reporting for Pension Plans – an amendment of GASB Statement No. 25, issued June 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to establish accounting and financial reporting requirements related to pensions for governments whose employees are provided with pensions through pension plans that are covered by the scope of this Statement, as well as for nonemployer governments that have a legal obligation to contribute to those plans. Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27, issued June 2012, will be effective for the fiscal year ending June 30, 2015. The objective of this Statement is to improve information provided by state and local governmental employers about financial support for pensions that is provided by other entities. Statement No. 69, Government Combinations and Disposals of Government Operations, issued January 2013, will be effective for the fiscal year ending June 30, 2015. The objective of this statement is to improve financial reporting by addressing accounting and financial reporting for government combinations and disposals of government operations. The term government combinations is used in this Statement to refer to a variety of arrangements including mergers and acquisitions. Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, issued April 2013, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to improve the recognition, measurement, and disclosure guidance for state and local governments that have extended or received financial guarantees that are nonexchange transactions. The City’s management has not yet determined the effect these statements will have on the City’s financial statements. 97 Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Property taxes 50,416$ -$ 50,416$ Delinquent property taxes 3 - 3 Tax increment financing taxes 376 - 376 Other city taxes 11,217 - 11,217 Licenses and permits 1,777 7 1,784 Intergovernmental 19,033 36,641 55,674 Charges for services 3,826 37,026 40,852 Use of money and property 827 1,178 2,005 Miscellaneous 4,058 1,649 5,707 Total revenues 91,533 76,501 168,034 Expenditures/Expenses: Public safety 20,256 - 20,256 Public works 6,732 - 6,732 Health and social services 293 - 293 Culture and recreation 12,171 - 12,171 Community and economic development 10,158 - 10,158 General government 7,078 - 7,078 Debt service 19,170 - 19,170 Capital outlay 21,665 - 21,665 Business-type - 89,618 89,618 Total expenditures/expenses 97,523 89,618 187,141 Excess (deficiency) of revenues over (under) expenditures/expenses (5,990) (13,117) (19,107) Other financing sources and uses, net (4,792) 10,426 5,634 Net change in fund balances (10,782) (2,691) (13,473) Balances, beginning of year 76,966 86,975 163,941 Balances, end of year 66,184 84,284 150,468 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, 2013 (dollar amounts expressed in thousands) BUDGETARY BASIS 98 Final to Actual Variance - Positive Original Final (Negative) 50,407$ 50,407$ 9$ - - 3 507 507 (131) 11,032 11,107 110 1,440 1,440 344 38,627 73,396 (17,722) 41,067 40,549 303 1,535 2,050 (45) 3,772 5,285 422 148,387 184,741 (16,707) 21,450 21,579 1,323 7,718 7,763 1,031 291 293 - 12,685 13,032 861 7,218 15,388 5,230 7,619 7,544 466 20,226 20,326 1,156 25,724 84,671 63,006 67,004 98,683 9,065 169,935 269,279 82,138 (21,548) (84,538) 65,431 11,946 15,603 (9,969) (9,602) (68,935) 55,462 107,619 163,941 98,017 95,006 Budgeted Amounts 99 Accrual Modified Accrual Budget Basis Adjustments Basis Revenues 91,533$ 1,582$ 93,115$ Expenditures 97,523 (3,202) 94,321 Net (5,990) 4,784 (1,206) Other financing sources (uses)(4,792) (1,521) (6,313) Beginning Fund Balances 76,966$ (2,568)$ 74,398$ Ending Fund Balances 66,184$ 695$ 66,879$ Accrual Accrual Budget Basis Adjustments Basis Revenues 76,501$ (26,330)$ 50,171$ Expenditures 89,618 (39,273) 50,345 Net (13,117) 12,943 (174) Other financing sources (uses)10,426 33,974 44,400 Beginning Fund Balances 86,975 204,480$ 291,455 Ending Fund Balances 84,284$ 251,397$ 335,681$ 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, 2013 (dollar amounts expressed in thousands) 100 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2013 In accordance with Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and agency funds. The budget basis of accounting is cash basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon nine major classes of expenditures known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay and business-type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $36,354,000 and expenditures by $99,344,000. The budget amendments were primarily due to changes in the breadth and timing of capital improvement projects, which the City budgets in full during the initial year of the projects and amends future year budgets for carryover. Additional amendments are related to flood recovery and mitigation costs and the associated grants from flooding in the summer of 2008. 101 City of Iowa City, Iowa Note to Required Supplementary Information – Schedule of Funding Progress for Health and Dental Plans For the Year Ended June 30, 2013 Actuarial Valuation Date Fiscal Year Actuarial Value of Assets Actuarial Accrued Liability (AAL) Unfunded AAL (UAAL) Funded Ratio Covered Payroll UAAL As a Percentage of Covered Payroll July 1, 2008 June 30, 2009 $ - $ 15,235,196 $ 15,235,196 0.00% $ 29,842,842 51.1% July 1, 2010 June 30, 2011 $ - $ 6,893,438 $ 6,893,438 0.00% $ 31,505,702 21.9% July 1, 2012 June 30, 2013 $ - $ 7,163,715 $ 7,163,715 0.00% $ 34,992,423 20.5% 102 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: Economic Development Fund – accounts for revenue and expenditures of economic development activities. Metropolitan Planning Organization of Johnson County (formerly Johnson County Council of Governments) Fund – accounts for the financial activities of the metropolitan/rural cooperative planning organization. CAPITAL PROJECT FUND 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. 103 Capital Projects Metropolitan Bridge, Planning Street, and Organization Traffic Economic of Johnson Control Development County Construction Total Assets Equity in pooled cash and investments 267$ 142$ 7,717$ 8,126$ Receivables: Property tax 277 - - 277 Due from other governments - 45 3,207 3,252 Assets held for resale - - 165 165 Restricted assets: Equity in pooled cash and investments - - 1 1 Total assets 544$ 187$ 11,090$ 11,821$ Liabilities and Fund Balances Liabilities: Accounts payable 265$ 2$ 389$ 656$ Contracts payable - - 1,757 1,757 Accrued liabilities - 10 9 19 Deferred revenue 275 45 1,989 2,309 Liabilities payable from restricted assets: Deposits - - 1 1 Total liabilities 540 57 4,145 4,742 Fund balances: Restricted 30 130 7,542 7,702 Unassigned (26) - (597) (623) Total fund balances 4 130 6,945 7,079 Total liabilities and fund balances 544$ 187$ 11,090$ 11,821$ Special Revenue CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2013 (amounts expressed in thousands) 104 Capital Projects Metropolitan Bridge, Planning Street, and Organization Traffic Economic of Johnson Control Development County Construction Total Revenues Property taxes 656$ -$ 288$ 944$ Intergovernmental - 252 1,861 2,113 Charges for services - - 57 57 Use of money and property - - 10 10 Miscellaneous 32 14 3 49 Total revenues 688 266 2,219 3,173 Expenditures Current: Public works - - 1,509 1,509 Community and economic development 547 638 - 1,185 Capital outlay - - 5,437 5,437 Total expenditures 547 638 6,946 8,131 Excess (deficiency) of revenues over (under) expenditures 141 (372) (4,727) (4,958) Other Financing Sources (Uses) Transfers in 36 327 12,722 13,085 Transfers out (94) - (763) (857) Total other financing sources and (uses)(58) 327 11,959 12,228 Net change in fund balances 83 (45) 7,232 7,270 Fund Balances, Beginning (79) 175 (287) (191) Fund Balances, Ending 4$ 130$ 6,945$ 7,079$ Special Revenue CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended June 30, 2013 (amounts expressed in thousands) 105 106 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. 107 Cable Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments 570$ 1,763$ 1,593$ 3,926$ Receivables: Accounts and unbilled usage - 100 181 281 Interest - 1 2 3 Due from other governments 777 14 - 791 Total current assets 1,347 1,878 1,776 5,001 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 109 - 116 225 Other post employment benefits asset 7 - - 7 Capital assets: Land 7,244 2,167 - 9,411 Buildings 4,930 - 731 5,661 Improvements other than buildings 357 - - 357 Machinery and equipment 281 259 110 650 Infrastructure 12,460 38,379 - 50,839 Accumulated depreciation (5,018) (9,895) (386) (15,299) Construction in progress 4,153 1,865 - 6,018 Total noncurrent assets 24,523 32,775 571 57,869 Total assets 25,870 34,653 2,347 62,870 Liabilities Current liabilities: Accounts payable 96 21 117 234 Contracts payable 778 47 - 825 Accrued liabilities 1 3 10 14 Employee vested benefits 2 - 17 19 Total current liabilities 877 71 144 1,092 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 9 - - 9 Advances from other funds 860 - - 860 Employee vested benefits 2 - 13 15 Other post employment benefits obligation - 6 10 16 Total noncurrent liabilities 871 6 23 900 Total liabilities 1,748 77 167 1,992 Net Position Net investment in capital assets 24,407 32,775 455 57,637 Restricted for future improvements 100 - - 100 Unrestricted (385) 1,801 1,725 3,141 Total net position 24,122$ 34,576$ 2,180$ 60,878$ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS June 30, 2013 (amounts expressed in thousands) 108 Cable Airport Stormwater Television Total Operating Revenues: Charges for services 314$ 974$ 816$ 2,104$ Miscellaneous - 1 - 1 Total operating revenues 314 975 816 2,105 Operating Expenses: Personal services 67 200 522 789 Commodities 25 177 9 211 Services and charges 246 201 139 586 338 578 670 1,586 Depreciation 757 744 34 1,535 Total operating expenses 1,095 1,322 704 3,121 Operating income (loss)(781) (347) 112 (1,016) Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 293 - - 293 Operating grants 11 13 - 24 Interest income - 1 3 4 Total nonoperating revenues (expenses)304 14 3 321 Income (loss) before capital contributions and transfers (477) (333) 115 (695) Capital contributions 2,452 226 - 2,678 Transfers in 465 2,083 - 2,548 Transfers out (57) (598) (55) (710) . Change in net position 2,383 1,378 60 3,821 Net Position, Beginning, as restated 21,739 33,198 2,120 57,057 Net Position, Ending 24,122$ 34,576$ 2,180$ 60,878$ (amounts expressed in thousands) NONMAJOR ENTERPRISE FUNDS AND CHANGES IN FUND NET POSITION COMBINING STATEMENT OF REVENUES, EXPENSES, CITY OF IOWA CITY, IOWA For the Year Ended June 30, 2013 109 Cable Airport Stormwater Television Total Cash Flows From Operating Activities Receipts from customers and users 315$ 971$ 822$ 2,108$ Payments to suppliers (180) (369) (145) (694) Payments to employees (66) (202) (518) (786) Net cash flows from operating activities 69 400 159 628 Cash Flows From Noncapital Financing Activities Operating grants received (2) (1) - (3) Transfers from other funds 465 2,083 - 2,548 Transfers to other funds (57) (598) (55) (710) Repayment of advances from other funds (279) - - (279) Net cash flows from noncapital financing activities 127 1,484 (55) 1,556 Cash Flows From Capital and Related Financing Activities Capital grants received 2,273 - - 2,273 Acquisition and construction of property and equipment (2,855) (865) - (3,720) Proceeds from sale of property 313 - 4 317 Net cash flows from capital and related financing activities (269) (865) 4 (1,130) Cash Flows From Investing Activities Interest on investments 2 1 4 7 Net increase (decrease) in cash and cash equivalents (71) 1,020 112 1,061 Cash and Cash Equivalents, Beginning 750 743 1,597 3,090 Cash and Cash Equivalents, Ending 679$ 1,763$ 1,709$ 4,151$ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)(781)$ (347)$ 112$ (1,016)$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 757 744 34 1,535 Changes in: Receivables: Accounts and unbilled usage - (4) 6 2 Accounts payable 91 9 3 103 Accrued liabilities - (1) 1 - Employee vested benefits - (2) - (2) Deposits 1 - - 1 Other post employment benefits asset/obligation 1 1 3 5 Total adjustments 850 747 47 1,644 Net cash flows from operating activities 69$ 400$ 159$ 628$ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 226$ -$ 226$ CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2013 (amounts expressed in thousands) 110 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. 111 Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments 8,839$ 762$ 12,503$ 2,842$ 24,946$ Receivables: Accounts and unbilled usage - - 1,190 - 1,190 Interest 8 1 11 3 23 Due from other governments 100 - - 1 101 Inventories 659 - - - 659 Total current assets 9,606 763 13,704 2,846 26,919 Noncurrent assets: Other post employment benefits asset - - 24 - 24 Capital assets: Land 45 - - - 45 Buildings 578 - - 243 821 Improvements other than buildings 50 - - - 50 Machinery and equipment 15,041 214 24 1,939 17,218 Infrastructure - 31 - 1,577 1,608 Accumulated depreciation (10,129) (199) (14) (2,220) (12,562) Construction in progress 99 420 - - 519 Total noncurrent assets 5,684 466 34 1,539 7,723 Total assets 15,290 1,229 13,738 4,385 34,642 Liabilities Current liabilities: Accounts payable 451 1 155 26 633 Accrued liabilities 15 1 2,135 19 2,170 Employee vested benefits 31 1 3 28 63 Total current liabilities 497 3 2,293 73 2,866 Noncurrent liabilities: Employee vested benefits 24 1 3 23 51 Other post employment benefits obligation 6 4 - 65 75 Total noncurrent liabilities 30 5 3 88 126 Total liabilities 527 8 2,296 161 2,992 Net Position Net investment in capital assets 5,684 466 10 1,539 7,699 Unrestricted 9,079 755 11,432 2,685 23,951 Total net position 14,763$ 1,221$ 11,442$ 4,224$ 31,650$ (amounts expressed in thousands) CITY OF IOWA CITY COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2013 112 Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services 5,563$ 232$ 10,390$ 1,839$ 18,024$ Miscellaneous 7 - 3 4 14 Total operating revenues 5,570 232 10,393 1,843 18,038 Operating Expenses: Personal services 869 30 255 958 2,112 Commodities 2,392 2 188 147 2,729 Services and charges 361 172 7,978 516 9,027 3,622 204 8,421 1,621 13,868 Depreciation 1,244 25 3 265 1,537 Total operating expenses 4,866 229 8,424 1,886 15,405 Operating income (loss)704 3 1,969 (43) 2,633 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 237 - - (22) 215 Operating grants - - - 1 1 Interest income 21 2 28 8 59 Total nonoperating revenues (expenses)258 2 28 (13) 275 Income (loss) before capital contributions and transfers 962 5 1,997 (56) 2,908 Capital contributions 3 - - 20 23 Transfers in 223 420 - 163 806 Change in net position 1,188 425 1,997 127 3,737 Net Position, Beginning 13,575 796 9,445 4,097 27,913 Net Position, Ending 14,763$ 1,221$ 11,442$ 4,224$ 31,650$ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended June 30, 2013 AND CHANGES IN FUND NET POSITION 113 Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from customers and users 5,563$ 232$ 9,203$ 1,843$ 16,841$ Payments to suppliers (2,711) (173) (8,698) (680) (12,262) Payments to employees (865) (28) (25) (938) (1,856) Net cash flows from operating activities 1,987 31 480 225 2,723 Cash Flows From Noncapital Financing Activities Transfers from other funds 226 420 - 163 809 Net cash flows from noncapital financing activities 226 420 - 163 809 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (1,786) (425) (5) (269) (2,485) Proceeds from sale of property 254 2 - (22) 234 Net cash flows from capital and related financing activities (1,532) (423) (5) (291) (2,251) Cash Flows From Investing Activities Interest on investments 29 2 42 11 84 Net increase in cash and cash equivalents 710 30 517 108 1,365 Cash and Cash Equivalents, Beginning 8,129 732 11,986 2,734 23,581 Cash and Cash Equivalents, Ending 8,839$ 762$ 12,503$ 2,842$ 24,946$ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)704$ 3$ 1,969$ (43)$ 2,633$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 1,244 25 3 265 1,537 Changes in: Receivables: Accounts and unbilled usage - - (1,190) - (1,190) Due from other governments (7) - - - (7) Inventories (169) - - - (169) Accounts payable 211 1 (532) (17) (337) Accrued liabilities 1 1 229 1 232 Employee vested benefits (6) - - 7 1 Other post employment benefits asset/obligation 9 1 1 12 23 Total adjustments 1,283 28 (1,489) 268 90 Net cash flows from operating activities 1,987$ 31$ 480$ 225$ 2,723$ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others 3$ -$ -$ 20$ 23$ Contributions of capital assets to government and others -$ -$ -$ 22$ 22$ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2013 114 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. 115 Balance Balance July 1, 2012 Increases Decreases June 30, 2013 Project Green Assets Equity in pooled cash and investments 204$ 68$ 127$ 145$ Interest receivable 1 - 1 - Total assets 205$ 68$ 128$ 145$ Liabilities Accounts payable -$ 6$ -$ 6$ Due to agency 205$ 62$ 128$ 139$ Total liabilities 205$ 68$ 128$ 145$ Library Foundation Assets Equity in pooled cash and investments -$ 9$ 9$ -$ Accounts receivable 9 - 9 - 9$ 9$ 18$ -$ Liabilities Accrued liabilities 9$ -$ 9$ -$ Total liabilities 9$ -$ 9$ -$ Total Agency Funds Assets Equity in pooled cash and investments 204$ 77$ 136$ 145$ Accounts receivable 9 - 9 - Interest receivable 1 - 1 - Total assets 214$ 77$ 146$ 145$ Liabilities Accounts payable -$ 6$ -$ 6$ Accrued liabilities 9$ -$ 9$ -$ Due to agency 205 62 128 139 Total liabilities 214$ 68$ 137$ 145$ (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended June 30, 2013 AGENCY FUNDS 116 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 119 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 124 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 134 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 144 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 146 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. 117 118 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2013 1 Go v e r n m e n t a l a c t i v i t i e s N e t i n v e s t m e n t i n c a p i t a l a s s e t s 67 , 0 9 0 $ 84 , 7 6 8 $ 95 , 2 2 7 $ 10 1 , 0 2 7 $ 10 4 , 8 3 3 $ 10 0 , 7 4 1 $ 11 1 , 7 0 3 $ 123,935 $ 135,998 $ 133,989 $ R e s t r i c t e d 17 , 7 0 5 16 , 9 7 3 6, 8 5 2 8, 1 8 1 23 , 7 4 1 26 , 5 8 6 25 , 5 8 8 31,179 35,021 22,867 U n r e s t r i c t e d 11 , 7 0 0 3, 7 9 3 10 , 8 2 7 11 , 0 4 3 1, 1 1 9 17 , 9 3 8 32 , 4 7 8 36,862 38,906 50,744 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 p o s i t i o n 96 , 4 9 5 $ 10 5 , 5 3 4 $ 11 2 , 9 0 6 $ 12 0 , 2 5 1 $ 12 9 , 6 9 3 $ 14 5 , 2 6 5 $ 16 9 , 7 6 9 $ 191,976 $ 209,925 $ 207,600 $ Bu s i n e s s - t y p e a c t i v i t i e s N e t i n v e s t m e n t i n c a p i t a l a s s e t s 15 0 , 8 1 7 $ 15 0 , 7 9 7 $ 15 5 , 3 4 6 $ 17 2 , 5 1 8 $ 15 6 , 0 7 5 $ 16 2 , 2 1 1 $ 17 2 , 6 0 1 $ 186,177 $ 195,073 $ 253,617 $ R e s t r i c t e d 14 , 9 3 2 15 , 0 3 8 15 , 6 8 2 23 , 8 9 3 21 , 3 2 0 19 , 1 5 9 17 , 5 8 8 20,658 20,176 19,033 U n r e s t r i c t e d 36 , 2 4 6 40 , 7 8 0 42 , 9 8 8 33 , 6 9 5 60 , 2 2 5 63 , 8 4 2 65 , 7 2 5 61,032 58,850 74,370 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 p o s i t i o n 20 1 , 9 9 5 $ 20 6 , 6 1 5 $ 21 4 , 0 1 6 $ 23 0 , 1 0 6 $ 23 7 , 6 2 0 $ 24 5 , 2 1 2 $ 25 5 , 9 1 4 $ 267,867 $ 274,099 $ 347,020 $ Pr i m a r y g o v e r n m e n t N e t i n v e s t m e n t i n c a p i t a l a s s e t s 21 7 , 9 0 7 $ 23 5 , 5 6 5 $ 25 0 , 5 7 3 $ 27 3 , 5 4 5 $ 26 0 , 9 0 8 $ 26 2 , 9 5 2 $ 28 4 , 3 0 4 $ 310,112 $ 331,071 $ 387,606 $ R e s t r i c t e d 32 , 6 3 7 32 , 0 1 1 22 , 5 3 4 32 , 0 7 4 45 , 0 6 1 45 , 0 2 5 43 , 1 7 6 51,837 55,197 41,900 U n r e s t r i c t e d 47 , 9 4 6 44 , 5 7 3 53 , 8 1 5 44 , 7 3 8 61 , 3 4 4 82 , 5 0 0 98 , 2 0 3 97,894 97,756 125,114 To t a l p r i m a r y g o v e r n m e n t n e t p o s i t i o n 29 8 , 4 9 0 $ 31 2 , 1 4 9 $ 32 6 , 9 2 2 $ 35 0 , 3 5 7 $ 36 7 , 3 1 3 $ 39 0 , 4 7 7 $ 42 5 , 6 8 3 $ 459,843 $ 484,024 $ 554,620 $ 1 T h e C i t y o f I o w a C i t y r e c l a s s i f i e d t h e M a s s T r a n s p o r t a t i o n F u n d f r o m t h e G e n e r a l f u n d t o a n E n t e r p r i s e F u n d e f f e c t i v e t h e f i s c a l y e a r e n d i n g J u n e 3 0 , 2 0 1 3 . CI T Y O F I O W A C I T Y , I O W A NE T P O S I T I O N B Y C O M P O N E N T La s t T e n 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 ) 11 9 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 2011 2012 2013 1 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 15 , 0 1 5 $ 15 , 2 8 6 $ 16 , 6 9 0 $ 16 , 6 9 4 $ 20 , 5 0 4 $ 20 , 7 3 0 $ 19 , 9 5 5 $ 18,867 $ 21,186 $ 20,989 $ P u b l i c w o r k s 10 , 4 2 3 11 , 5 2 1 12 , 7 2 3 13 , 5 6 0 13 , 7 2 7 15 , 1 7 7 16 , 8 0 6 19,145 17,556 10,240 C u l t u r e a n d r e c r e a t i o n 12 , 0 5 1 11 , 3 4 1 11 , 4 5 8 11 , 9 7 0 13 , 4 6 0 9, 5 7 4 12 , 2 3 8 10,811 13,107 14,481 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 2, 5 8 0 6, 9 6 0 6, 2 6 4 4,6 8 0 1, 8 5 0 8, 7 2 6 16 , 9 1 3 16,501 16,305 10,596 G e n e r a l g o v e r n m e n t 6, 5 2 7 6, 5 0 0 6, 8 9 2 7,2 5 8 7, 4 3 3 7, 6 0 0 7,5 4 9 7,356 7,591 7,513 D e b t s e r v i c e 3, 4 4 0 3, 6 0 2 3, 4 0 4 3,4 5 9 3, 5 1 7 3, 2 6 4 2,9 7 0 2,841 2,400 2,237 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 50 , 0 3 6 55 , 2 1 0 57 , 4 3 1 57 , 6 2 1 60 , 4 9 1 65 , 0 7 1 76 , 4 3 1 75,521 78,145 66,056 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 , 3 4 4 12 , 2 1 4 11 , 7 1 0 11 , 5 3 7 11 , 7 5 7 11 , 9 2 5 11 , 2 7 4 10,971 11,069 10,464 W a t e r 8, 0 1 1 8, 3 1 3 9, 3 2 4 8,8 2 3 8, 8 0 4 9, 1 8 5 8,3 0 9 8,523 8,781 9,074 S a n i t a t i o n 6, 1 0 3 6, 0 3 1 6, 1 0 1 6,6 8 4 6, 8 6 8 7, 2 9 6 7,7 0 5 7,461 8,315 7,279 H o u s i n g a u t h o r i t y 7, 2 1 9 7, 4 6 6 7, 0 2 6 6,8 8 4 7, 3 7 4 7, 2 3 8 7,8 3 8 7,448 7,911 7,658 P a r k i n g 3, 8 9 8 3, 9 8 9 3, 8 8 4 4,4 0 3 3, 9 1 3 4, 4 8 9 4,5 3 6 4,135 4,167 4,579 A i r p o r t 51 5 52 0 51 2 41 8 56 0 69 3 72 4 1,049 1,127 1,086 S t o r m w a t e r 65 2 1, 4 5 2 81 7 93 2 1, 0 7 2 1, 2 2 3 1,1 8 7 1,418 1,304 1,318 C a b l e t e l e v i s i o n 54 9 60 7 57 6 52 5 59 8 63 3 64 5 638 689 692 T r a n s i t - - - - - - - - - 6,998 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 39 , 2 9 1 40 , 5 9 2 39 , 9 5 0 40 , 2 0 6 40 , 9 4 6 42 , 6 8 2 42 , 2 1 8 41,643 43,363 49,148 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 89 , 3 2 7 $ 95 , 8 0 2 $ 97 , 3 8 1 $ 97 , 8 2 7 $ 10 1 , 4 3 7 $ 10 7 , 7 5 3 $ 11 8 , 6 4 9 $ 117,164 $ 121,508 $ 115,204 $ 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 3, 0 3 8 $ 2, 9 2 8 $ 2, 9 7 1 $ 3,0 8 8 $ 3, 0 1 9 $ 2, 9 6 8 $ 2,9 8 0 $ 3,279 $ 3,401 $ 4,098 $ P u b l i c w o r k s 1, 0 0 6 1, 0 7 6 1, 0 6 2 1,2 2 9 1, 0 4 7 1, 3 9 2 1,0 6 1 1,117 1,112 52 C u l t u r e a n d r e c r e a t i o n 63 0 65 3 70 7 71 2 68 0 71 5 77 3 872 825 775 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 - - - - - - - - - - G e n e r a l g o v e r n m e n t 1, 4 2 8 1, 4 8 2 1, 5 5 6 1,5 6 9 1, 6 3 3 1, 6 2 6 2,5 7 4 2,931 2,817 2,763 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, 1 5 0 2, 5 9 2 2, 9 3 7 3,2 1 5 3, 6 1 1 8, 1 8 5 15 , 5 5 4 13,517 8,682 4,731 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 6, 1 9 8 7, 6 7 9 3, 8 4 9 4,2 8 3 1, 7 4 7 3, 7 7 3 8,2 9 1 6,048 6,078 6,876 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 14 , 4 5 0 16 , 4 1 0 13 , 0 8 2 14 , 0 9 6 11 , 7 3 7 18 , 6 5 9 31 , 2 3 3 27,764 22,915 19,295 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 , 5 8 0 12 , 1 4 5 12 , 1 4 5 12 , 5 3 5 12 , 3 1 8 12 , 5 5 7 12 , 6 3 7 12,836 12,670 12,832 W a t e r 9, 1 6 4 8, 6 0 2 9, 0 1 2 8,2 4 0 8, 1 9 5 8, 1 0 7 7,9 5 7 8,054 8,419 8,583 S a n i t a t i o n 7, 1 1 1 7, 1 5 4 7, 1 3 3 7,2 0 4 7, 8 5 3 8, 2 8 6 8,0 9 6 8,259 8,115 8,181 H o u s i n g a u t h o r i t y 21 9 18 1 16 8 13 2 14 9 18 1 18 0 208 207 205 P a r k i n g 4, 0 1 1 4, 0 4 5 3, 9 3 6 4,7 0 4 4, 6 7 3 5, 4 3 8 5,3 7 7 5,234 4,743 5,043 A i r p o r t 21 3 22 0 26 4 23 4 25 8 24 8 28 9 293 306 314 S t o r m w a t e r 10 4 59 2 59 7 62 2 61 6 62 2 61 7 641 811 974 C a b l e T e l e v i s i o n 67 3 70 8 71 8 72 6 81 4 78 8 79 0 809 824 816 T r a n s i t 1 - - - - - - - - - 2,117 (continued) 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 P O S I T I O N La s t T e n 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 ) 12 0 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 2011 2012 20131 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 96 8 76 1 77 3 1,5 3 9 57 7 26 6 2,1 1 5 2,394 3,223 30,181 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 45 2 58 8 60 6 84 5 31 4 13 2 57 2 973 977 494 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 - - 46 - - - 6 - 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 : A i r p o r t 11 6 28 3 1, 1 2 5 1,2 3 1 1, 5 8 0 3, 2 3 9 3,3 1 1 358 1,576 2,452 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 71 7 75 5 46 8 1,2 5 1 30 2 68 54 1 140 436 226 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 - - - - 17 - 25 11 - - 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 - - 269 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 : T r a n s i t - - - - - - - - - 898 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, 9 5 0 7, 0 1 2 7, 4 1 4 7,1 6 5 6, 2 8 1 6, 6 6 8 7,7 6 5 7,438 6,782 6,968 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 5 6 - - 442 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 - - - - - 2 - - - 11 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 9 - 3 6 - 60 7 6 10 - 23 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 - 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 : S t o r m w a t e r - - - - - - - - - 13 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 : T r a n s i t - - - - - - - - - 1,767 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 43 , 2 8 7 43 , 0 4 6 44 , 4 0 8 46 , 4 3 5 43 , 9 5 5 47 , 2 2 5 50 , 2 9 0 47,927 49,095 82,540 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 57 , 7 3 7 $ 59 , 4 5 6 $ 57 , 4 9 0 $ 60 , 5 3 1 $ 55 , 6 9 2 $ 65 , 8 8 4 $ 81 , 5 2 3 $ 75,691 $ 72,010 $ 101,835 $ 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 5 , 5 8 6 ) $ (3 8 , 8 0 0 ) $ (4 4 , 3 4 9 ) $ (4 3 , 5 2 5 ) $ (4 8 , 7 5 4 ) $ (4 6 , 4 1 2 ) $ (4 5 , 1 9 8 ) $ (47,757) $ (55,230)$ (46,761)$ B u s i n e s s - t y p e a c t i v i t i e s 3, 9 9 6 2, 4 5 4 4, 4 5 8 6,2 2 9 3, 0 0 9 4, 5 4 3 8,0 7 2 6,284 5,732 33,392 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 1 , 5 9 0 ) $ (3 6 , 3 4 6 ) $ (3 9 , 8 9 1 ) $ (3 7 , 2 9 6 ) $ (4 5 , 7 4 5 ) $ (4 1 , 8 6 9 ) $ (3 7 , 1 2 6 ) $ (41,473) $ (49,498)$ (13,369)$ 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 P o s i t i o n 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 34 , 1 7 3 $ 35 , 3 2 7 $ 37 , 7 7 0 $ 41 , 4 9 2 $ 43 , 4 0 0 $ 47 , 0 8 5 $ 49 , 4 6 7 $ 48,011 $ 50,516 $ 51,017 $ R o a d u s e t a x 5, 3 1 1 5, 2 6 9 5, 3 0 3 5,3 0 5 5, 4 3 2 5, 2 5 4 5,5 2 5 6,068 6,394 6,589 L o c a l S a l e s O p t i o n t a x - - - - - - 8,1 4 1 8,911 8,644 8,858 O t h e r t a x e s 1, 6 0 9 1, 3 5 1 1, 2 4 0 1,4 1 2 1, 4 3 5 1, 4 8 9 1,5 3 5 2,464 2,491 2,609 E a r n i n g s o n i n v e s t m e n t s 1, 0 5 6 1, 5 7 6 2, 6 7 8 4,0 4 5 3, 9 3 2 3, 0 5 7 1,7 6 6 1,539 1,823 841 M i s c e l l a n e o u s 3, 7 4 6 3, 9 9 4 4, 4 2 2 3,6 5 6 3, 5 1 6 4, 8 9 4 3,8 9 3 6,230 4,228 4,390 G a i n o n s a l e o f a s s e t s 65 95 10 0 28 1 (7 ) - - 761 2,950 1,312 T r a n s f e r s (1 , 8 4 0 ) 64 5 20 8 (5 , 3 2 1 ) 48 8 20 5 (6 2 5 ) (4,020) (3,867) (10,485) 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 44 , 1 2 0 48 , 2 5 7 51 , 7 2 1 50 , 8 7 0 58 , 1 9 6 61 , 9 8 4 69 , 7 0 2 69,964 73,179 65,131 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 99 1 1, 7 7 1 2, 5 7 5 3,6 0 6 3, 2 7 9 2, 5 7 7 1,3 1 1 954 813 671 G a i n o n s a l e o f a s s e t s 1, 0 0 9 30 4 18 5 59 1 1, 2 6 0 36 0 23 0 314 336 293 M i s c e l l a n e o u s 33 5 41 8 39 1 34 3 45 4 31 7 46 4 381 484 918 T r a n s f e r s 1, 8 4 0 (6 4 5 ) (2 0 8 ) 5,3 2 1 (4 8 8 ) (2 0 5 ) 62 5 4,020 3,867 10,485 E x t r a o r d i n a r y i t e m s - - - - - - - - (5,000) - 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 4, 1 7 5 1, 8 4 8 2, 9 4 3 9,8 6 1 4, 5 0 5 3, 0 4 9 2,6 3 0 5,669 500 12,367 T o t a l p r i m a r y g o v e r n m e n t 48 , 2 9 5 $ 50 , 1 0 5 $ 54 , 6 6 4 $ 60 , 7 3 1 $ 62 , 7 0 1 $ 65 , 0 3 3 $ 72 , 3 3 2 $ 75,633 $ 73,679 $ 77,498 $ Ch a n g e i n N e t P o s i t i o n G o v e r n m e n t a l a c t i v i t e s 8, 5 3 4 $ 9, 4 5 7 $ 7, 3 7 2 $ 7,3 4 5 $ 9, 4 4 2 $ 15 , 5 7 2 $ 24 , 5 0 4 $ 22,207 $ 17,949 $ 18,370 $ B u s i n e s s - t y p e a c t i v i t e s 8, 1 7 1 4, 3 0 2 7, 4 0 1 16 , 0 9 0 7, 5 1 4 7, 5 9 2 10 , 7 0 2 11,953 6,232 45,759 T o t a l p r i m a r y g o v e r n m e n t 16 , 7 0 5 $ 13 , 7 5 9 $ 14 , 7 7 3 $ 23 , 4 3 5 $ 16 , 9 5 6 $ 23 , 1 6 4 $ 35 , 2 0 6 $ 34,160 $ 24,181 $ 64,129 $ 1 T h e C i t y o f I o w a C i t y r e c l a s s i f i e d t h e M a s s T r a n s p o r t a t i o n F u n d f r o m t h e G e n e r a l F u n d t o a n E n t e r p r i s e F u n d e f f e c t i v e t h e f i s c a l y e a r e n d i n g J u n e 3 0 , 2 0 1 3 . 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 P O S I 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 (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 ) 12 1 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 20 1 1 1 2012 2 0132 Ge n e r a l F u n d N on s p e n d a b l e - $ - $ - $ - $ - $ - $ - $ 33 1 $ 314 $ 69 $ R e s t r i c t e d - - - - - - - 1 6 , 2 6 8 23,779 25,689 A s s i g n e d - - - - - - - 3,5 4 2 5,191 1,744 R e s e r v e d 39 6 36 2 57 0 56 8 44 6 55 5 40 6 - - - U n a s s i g n e d - - - - - - - 1 5 , 9 3 1 14,273 17,113 U n r e s e r v e d 14 , 3 0 1 15 , 5 2 5 16 , 5 5 1 18 , 5 2 8 14 , 4 8 8 15 , 3 6 2 26 , 1 0 1 - - - To t a l g e n e r a l f u n d 14 , 6 9 7 $ 15 , 8 8 7 $ 17 , 1 2 1 $ 19 , 0 9 6 $ 14 , 9 3 4 $ 15 , 9 1 7 $ 26 , 5 0 7 $ 36 , 0 7 2 $ 43,557 $ 44,615 $ 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 t r i c t e d - $ - $ - $ - $ - $ - $ - $ 3 4 , 8 8 9 $ 34,853 $ 28,108 $ R e s e r v e d 1, 6 7 7 2, 1 9 8 1, 5 9 2 1, 9 8 4 3, 1 0 7 5, 3 3 9 3, 9 0 3 - - - 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 6, 9 3 0 3, 0 6 7 2, 7 2 5 4, 2 8 9 8, 6 9 1 11 , 7 5 9 13 , 9 5 2 - - - U n a s s i g n e d - - - - - - - ( 1 , 7 4 1 ) (366) (5,844) 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 9, 3 7 9 6, 2 2 2 3, 4 2 2 3, 3 6 6 2, 5 7 1 (1 , 8 5 2 ) (1 , 6 7 4 ) - - - C a p i t a l p r o j e c t s f u n d s 3, 8 8 2 6, 1 4 3 7, 0 9 3 7, 8 9 4 11 , 1 1 8 10 , 9 6 0 8, 0 4 3 - - - 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 21 , 8 6 8 $ 17 , 6 3 0 $ 14 , 8 3 2 $ 17 , 5 3 3 $ 25 , 4 8 7 $ 26 , 2 0 6 $ 24 , 2 2 4 $ 33 , 1 4 8 $ 34,487 $ 22,264 $ 1 T h e C i t y o f I o w a C i t y i m p l e m e n t e d G A S B S t a t e m e n t N o . 5 4 , Fu n d B a l a n c e R e p o r t i n g a n d G o v e r n m e n t a l F u n d T y p e D e f i n i t i o n s , i ss u e d M a r c h 2 0 0 9 , e f f e c t i v e t h e f i s c a l y e a r e n d i n g Ju n e 3 0 , 2 0 1 1 . T h i s S t a t e m e n t e s t a b l i s h e s n e w s t a n d a r d s f o r f u n d b a l a n c e c l a s s i f i c a t i o n s b a s e d p r i m a r i l y o n t h e e x t e n t t o w h i c h a g o v e r n m e n t i s b o u n d t o o b s e r v e c o n s t r a i n t s i m p o s e d up o n t h e u s e o f t h e r e s o u r c e s r e p o r t e d i n g o v e r n m e n t a l f u n d s . 2 T h e C i t y o f I o w a C i t y r e c l a s s i f i e d t h e M a s s T r a n s p o r t a t i o n F u n d f r o m t h e G e n e r a l f u n d t o a n E n t e r p r i s e F u n d e f f e c t i v e t h e f i s c a l y e a r e n d i n g J u n e 3 0 , 2 0 1 3 . CI T Y O F I O W A C I T Y , I O W A F UN 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 T e n F i s c a l Y e a r s (Mo 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 ) (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 ) 12 2 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 2012 20131 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 35 , 5 3 8 $ 36 , 6 7 7 $ 39 , 0 1 1 $ 42 , 9 0 5 $ 44 , 8 3 5 $ 48 , 5 7 2 $ 59 , 1 4 3 $ 59,387 $ 61,649 $ 62,483 $ L i c e n s e s a n d p e r m i t s 1, 3 6 1 1, 2 5 5 1, 2 7 9 1, 4 0 4 1, 2 7 0 1, 2 8 4 1, 2 1 1 1,412 1,307 1,784 I n t e r g o v e r n m e n t a l 12 , 0 5 8 15 , 5 4 6 14 , 2 6 0 13 , 4 5 5 12 , 7 6 4 19 , 5 2 1 31 , 4 0 4 29,870 21,952 19,941 C h a r g e s f o r s e r v i c e s 3, 2 4 0 3, 3 0 1 2, 2 2 7 2, 4 2 3 2, 2 2 8 2, 4 9 8 2, 4 3 3 2,515 2,614 1,800 U s e o f m o n e y a n d p r o p e r t y 1, 0 0 2 1, 3 5 4 2, 2 0 3 3, 3 7 8 3, 2 0 6 2, 6 4 5 1, 5 9 9 1,479 1,768 782 M i s c e l l a n e o u s 4, 3 7 7 4, 1 2 1 4, 1 7 6 3, 8 5 8 3, 9 7 7 5, 3 0 2 4, 7 8 4 7,749 5,750 6,325 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 r e v e n u e s 57 , 5 7 6 $ 62 , 2 5 4 $ 63 , 1 5 6 $ 67 , 4 2 3 $ 68 , 2 8 0 $ 79 , 8 2 2 $ 10 0 , 5 7 4 $ 10 2 , 4 1 2 $ 95,040 $ 93,115 $ 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 14 , 0 2 5 $ 14 , 6 0 1 $ 15 , 8 1 9 $ 16 , 4 1 2 $ 18 , 7 0 5 $ 18 , 7 5 2 $ 19 , 1 0 8 $ 18,717 $ 20,091 $ 20,648 $ P u b l i c w o r k s 9, 1 5 6 9, 6 9 8 10 , 3 5 1 12 , 4 5 2 12 , 1 0 8 12 , 4 0 5 13 , 3 1 1 14,766 15,462 8,503 C u l t u r e a n d r e c r e a t i o n 9, 3 9 2 9, 1 8 3 10 , 1 2 2 10 , 2 6 1 10 , 7 0 3 10 , 8 4 9 11 , 2 6 6 12,498 13,075 13,000 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, 4 8 6 6, 3 7 5 4, 6 9 8 3, 4 4 5 4, 4 3 7 8, 0 3 7 10 , 5 2 0 8,878 8,037 8,219 G e n e r a l g o v e r n m e n t 6, 0 8 0 6, 2 8 2 6, 5 1 0 7, 1 9 4 7, 2 0 7 7, 3 0 0 7, 1 9 1 7,695 7,553 7,286 D e b t s e r v i c e P r i n c i p a l 5, 1 7 2 9, 3 4 9 6, 0 9 9 6, 7 0 0 7, 3 2 3 8, 4 1 8 9, 3 5 4 10,386 13,294 16,465 I n t e r e s t 3, 3 3 6 3, 6 7 6 3, 4 5 8 3, 4 6 4 3, 5 5 6 3, 3 6 4 3, 0 6 4 2,889 2,543 2,339 C a p i t a l p r o j e c t s 16 , 0 6 5 13 , 9 3 9 15 , 1 5 3 13 , 0 0 0 11 , 8 1 1 17 , 0 9 6 17 , 6 9 0 21,873 16,006 17,861 T o t a l e x p e n d i t u r e s 66 , 7 1 2 $ 73 , 1 0 3 $ 72 , 2 1 0 $ 72 , 9 2 8 $ 75 , 8 5 0 $ 86 , 2 2 1 $ 91 , 5 0 4 $ 97,702 $ 96,061 $ 94,321 $ 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 (9 , 1 3 6 ) $ (1 0 , 8 4 9 ) $ (9 , 0 5 4 ) $ (5 , 5 0 5 ) $ (7 , 5 7 0 ) $ (6 , 3 9 9 ) $ 9, 0 7 0 $ 4,710 $ (1,021)$ (1,206)$ 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 12 , 8 7 5 $ 7, 0 2 0 $ 7, 2 6 5 $ 8, 8 7 0 $ 9, 1 5 0 $ 30 , 0 3 5 $ - $ 1 6 , 1 6 5 $ 9,690 $ 2,655 $ I s s u a n c e o f r e f u n d i n g d e b t - - - - - - - 1 0 , 9 3 0 - - S a l e o f c a p i t a l a s s e t s 38 4 40 6 10 9 47 0 11 1 55 4 22 2 845 3,619 1,369 I n s u r a n c e R e c o v e r i e s - - - - - - 20 594 53 - I s s u a n c e o f n o t e p a y a b l e - 21 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 (1 9 ) 43 29 - 16 55 2 - 394 165 (42) P a y m e n t o f r e f u n d e d b o n d s - 0 - - - ( 2 3 , 1 4 0 ) - ( 1 1 , 0 8 5 ) - - T r a n s f e r s i n 14 , 6 1 4 15 , 7 7 6 21 , 6 2 7 21 , 5 5 2 25 , 4 1 3 16 , 4 8 6 16 , 7 4 2 18,658 19,499 25,198 T r a n s f e r s o u t (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 ) (1 6 , 3 8 6 ) (1 7 , 4 4 6 ) (2 2 , 7 2 2 ) (23,181) (35,493) 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 ) 11 , 1 2 1 $ 8, 2 1 9 $ 7, 4 9 0 $ 10 , 1 8 1 $ 11 , 3 6 2 $ 8, 1 0 1 $ (4 6 2 ) $ 13,779 $ 9,845 $ (6,313)$ N e t c h a n g e i n f u n d b a l a n c e s 1, 9 8 5 $ (2 , 6 3 0 ) $ (1 , 5 6 4 ) $ 4, 6 7 6 $ 3, 7 9 2 $ 1, 7 0 2 $ 8, 6 0 8 $ 18,489 $ 8,824 $ (7,519)$ 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 16 . 3 % 2 1 . 5 % 1 6 . 6 % 1 7 . 0 % 1 6 . 6 % 1 7 . 0 % 1 5 . 3 % 1 6 . 2 % 1 8 . 6 % 2 4 . 0 % 1 T h e C i t y o f I o w a C i t y r e c l a s s i f i e d t h e M a s s T r a n s p o r t a t i o n F u n d f r o m t h e G e n e r a l f u n d t o a n E n t e r p r i s e F u n d e f f e c t i v e t h e f i s c a l y e a r e n d i n g J u n e 3 0 , 2 0 1 3 . 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 T e n 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 ) (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 ) 12 3 Fi s c a l Lo c a l O p t i o n U t i l i t y Ye a r Pr o p e r t y T a x Ro a d U s e T a x Ho t e l / M o t e l T a x Sa l e s T a x 1 Fr a n c h i s e F e e 2 Total 20 0 4 34 , 9 5 8 $ 5, 3 1 1 $ 58 0 $ - $ - $ 40,849 $ 20 0 5 36 , 0 7 6 5, 2 6 9 61 1 - - 41,956 20 0 6 38 , 3 3 6 5, 3 0 3 67 4 - - 44,313 20 0 7 42 , 2 2 1 5, 3 0 5 68 3 - - 48,209 20 0 8 44 , 1 0 1 5, 4 3 2 73 4 - - 50,267 20 0 9 47 , 8 6 1 5, 2 5 4 71 3 - - 53,828 20 1 0 50 , 2 5 6 5, 5 2 5 69 9 8, 1 4 1 47 64,668 20 1 1 48 , 8 3 1 6, 0 6 8 77 6 8, 9 1 2 868 65,455 20 1 2 51 , 3 7 4 6, 3 9 4 81 1 8, 6 4 4 822 68,045 20 1 3 51 , 8 3 6 6, 5 8 9 87 2 8, 8 5 8 918 69,073 1 1 % L o c a l O p t i o n S a l e s T a x w e n t i n t o e f f e c t 7 / 1 / 0 9 a n d w i l l b e e f f e c t i v e t h r o u g h 6 / 3 0 / 1 3 . 2 1 % U t i l i t y F r a n c h i s e F e e w e n t i n t o e f f e c t 4 / 1 / 1 0 . CI T Y O F I O W A C I T Y , I O W A GE N E R A L G O V E R N M E N T T A X R E V E N U E S B Y S O U R C E La s t T e n 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 ) (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 ) 12 4 CI T Y O F I O W A C I T Y , I O W A AS S E S S E D A N D T A X A B L E V A L U E O F P R O P E R T Y 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 ) Co l l e c t i o n Co m m e r c i a l , I n d u s t i a l In c r e m e n t a l V a l u e G a s & Residential Taxable Value Ye a r E n d e d Ag r i c u l t u r a l & U t i l i t i e s ( e x c l u d i n g M i l i t a r y Ne t (D e b t S e r v i c e E l e c t r i c U t i l i t i e s To t a l R o l l b a c k a s a P e r c e n t a g e Ju n e 3 0 Re s i d e n t i a l (T a x e d a t A g R a t e ) Ga s & E l e c t r i c ) Ex e m p t i o n s Va l u a t i o n Le v y O n l y ) (e x c i s e t a x ) Va l u e Percentage of Assessed Value 20 0 4 A s s e s s e d 1 , 9 8 5 , 6 8 6 $ 2, 2 2 7 $ 91 5 , 9 3 1 $ 3,7 0 2 $ 2, 9 0 0 , 1 4 2 $ 13 , 1 5 7 $ 45 , 5 0 5 $ 2, 9 5 8 , 8 0 4 $ Ta x a b l e 1 , 0 2 0 , 3 9 2 2, 2 2 7 91 5 , 9 3 1 3,7 0 2 1, 9 3 4 , 8 4 8 $ 13 , 1 5 7 45 , 5 0 5 1, 9 9 3 , 5 1 0 $ 51.387 %67.376 % 20 0 5 A s s e s s e d 2 , 1 5 4 , 1 7 9 1, 9 6 8 97 0 , 3 4 3 3,6 2 7 3, 1 2 2 , 8 6 3 $ 23 , 9 5 7 44 , 7 2 3 3, 1 9 1 , 5 4 3 $ Ta x a b l e 1 , 0 4 4 , 0 1 6 1, 9 6 8 96 3 , 4 8 2 3,6 2 7 2, 0 0 5 , 8 3 9 $ 23 , 4 3 9 45 , 6 1 2 2, 0 7 4 , 8 9 0 $ 48.456 65.012 20 0 6 A s s e s s e d 2 , 2 3 6 , 0 7 0 1, 8 0 2 98 0 , 1 6 7 3,4 8 4 3, 2 1 4 , 5 5 5 $ 31 , 0 2 8 46 , 9 1 9 3, 2 9 2 , 5 0 2 $ Ta x a b l e 1 , 0 7 2 , 2 3 3 1, 8 0 2 98 0 , 1 6 7 3,4 8 4 2, 0 5 0 , 7 1 8 $ 31 , 0 2 8 42 , 8 3 4 2, 1 2 4 , 5 8 0 $ 47.962 64.528 20 0 7 A s s e s s e d 2 , 6 3 6 , 2 2 8 1, 5 8 2 1, 0 4 4 , 7 3 9 3,4 6 3 3, 6 7 9 , 0 8 6 $ 77 , 7 8 5 50 , 3 1 1 3, 8 0 7 , 1 8 2 $ Ta x a b l e 1 , 2 0 8 , 4 0 5 1, 5 8 2 1, 0 3 5 , 9 2 9 3,4 6 3 2, 2 4 2 , 4 5 3 $ 77 , 7 8 5 42 , 6 4 1 2, 3 6 2 , 8 7 9 $ 45.996 62.064 20 0 8 A s s e s s e d 2 , 7 2 2 , 7 5 4 1, 5 3 4 1, 0 5 8 , 5 8 0 3,4 2 4 3, 7 7 9 , 4 4 4 $ 94 , 8 6 4 54 , 0 5 3 3, 9 2 8 , 3 6 1 $ Ta x a b l e 1 , 2 3 4 , 8 7 2 1, 5 3 4 1, 0 5 8 , 5 8 0 3,4 2 4 2, 2 9 1 , 5 6 2 $ 94 , 8 6 4 41 , 5 4 2 2, 4 2 7 , 9 6 8 $ 45.560 61.806 20 0 9 A s s e s s e d 2 , 9 9 1 , 7 0 2 1, 5 6 5 1, 1 0 8 , 1 2 3 3,3 9 6 4, 0 9 7 , 9 9 4 $ 11 1 , 5 4 0 54 , 0 8 1 4, 2 6 3 , 6 1 5 $ Ta x a b l e 1 , 3 0 7 , 5 1 1 1, 4 1 0 1, 1 0 5 , 1 0 9 3,3 9 6 2, 4 1 0 , 6 3 4 $ 11 1 , 5 4 0 44 , 5 9 7 2, 5 6 6 , 7 7 1 $ 44.080 60.202 20 1 0 A s s e s s e d 3 , 0 6 5 , 2 7 9 1, 4 9 9 1, 1 3 3 , 8 1 8 3,3 2 4 4, 1 9 7 , 2 7 2 $ 11 7 , 8 1 3 61 , 0 6 6 4, 3 7 6 , 1 5 1 $ Ta x a b l e 1 , 3 8 4 , 0 8 8 1, 4 0 7 1, 1 3 3 , 8 1 8 3,3 2 4 2, 5 1 5 , 9 8 9 $ 11 7 , 8 1 3 45 , 1 5 7 2, 6 7 8 , 9 5 9 $ 45.589 61.217 20 1 1 A s s e s s e d 3 , 1 2 2 , 8 7 5 2, 3 1 5 1, 2 2 3 , 3 0 4 3,2 3 9 4, 3 4 5 , 2 5 5 $ 25 , 4 0 9 79 , 1 9 6 4, 4 4 9 , 8 6 0 $ Ta x a b l e 1 , 4 6 4 , 6 4 4 1, 5 3 4 1, 2 2 3 , 3 0 4 3,2 3 9 2, 6 8 6 , 2 4 3 $ 25 , 4 0 9 46 , 3 3 3 2, 7 5 7 , 9 8 5 $ 46.909 61.979 20 1 2 A s s e s s e d 3 , 1 8 2 , 6 3 6 2, 2 6 4 1, 2 3 1 , 7 5 6 3,1 6 3 4, 4 1 3 , 4 9 3 $ 25 , 4 0 9 81 , 2 4 0 4, 5 2 0 , 1 4 2 $ Ta x a b l e 1 , 5 4 4 , 2 6 1 1,5 6 2 1, 2 3 1 , 7 5 6 3,1 6 3 2, 7 7 4 , 4 1 6 $ 25 , 4 0 9 48 , 3 3 8 2, 8 4 8 , 1 6 3 $ 48.530 63.010 20 1 3 A s s e s s e d 3 , 2 8 4 , 2 4 9 2,5 1 6 1, 2 3 6 , 6 0 9 3,0 9 7 4, 5 2 0 , 2 7 7 $ 11 , 7 1 2 83 , 5 3 8 4, 6 1 5 , 5 2 7 $ Ta x a b l e 1 , 6 6 6 , 0 3 6 1,4 4 8 1,2 3 6 , 6 0 9 3,0 9 7 2, 9 0 0 , 9 9 6 $ 11 , 7 1 2 47 , 4 0 4 2, 9 6 0 , 1 1 2 $ 50.752 64.134 So u r c e s : Io w a D e p a r t m e n t o f M a n a g e m e n t No t e s : Pr o p e r t y i s r e a s s e s s e d i n t h e o d d n u m b e r e d y e a r s t o m a k e a d j u s t m e n t s t o a l l p r o p e r t y v a l u e s , a c c o r d i n g t o c u r r e n t m a r k e t v a l u e s . A s p e r t h e C o d e o f I o w a , a l l r e a l p r o p e r t y s u b j e c t t o t a x a t i o n sh a l l b e v a l u e d a t i t s a c t u a l v a l u e a n d , e x c e p t a s o t h e r w i s e p r o v i d e d , s h a l l b e r e a s s e s s e d a t 1 0 0 % o f i t s a c t u a l v a l u e . 12 5 (p e r $ 1 , 0 0 0 a s s e s s e d v a l u a t i o n ) Total Io w a C i t y K i r k w o o d Direct & Co l l e c t i o n 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 Rates 20 0 4 13 . 0 2 6 $ 4. 5 7 0 $ 17 . 5 9 6 $ 6. 1 0 2 $ 12 . 8 6 5 $ 0. 6 7 9 $ 0. 0 0 4 $ 37.247 $ 20 0 5 13 . 3 6 0 3. 9 5 4 17 . 3 1 4 6. 1 6 6 12 . 8 7 5 0. 6 6 8 0. 0 0 4 37.027 20 0 6 13 . 5 8 0 4. 1 4 9 17 . 7 2 9 6. 3 9 1 13 . 5 8 2 0. 6 4 9 0. 0 0 4 38.355 20 0 7 13 . 4 2 3 3. 8 7 9 17 . 3 0 2 6. 4 1 5 13 . 6 3 2 0. 8 7 2 0. 0 0 4 38.225 20 0 8 13 . 5 1 1 3. 7 8 6 17 . 2 9 7 6. 8 2 3 13 . 8 5 2 0. 8 5 5 0. 0 0 4 38.831 20 0 9 13 . 4 1 4 4. 3 0 3 17 . 7 1 7 7. 8 0 3 14 . 1 9 2 0. 8 5 2 0. 0 0 4 40.568 20 1 0 13 . 6 3 4 4. 2 1 9 17 . 8 5 3 7. 7 0 8 14 . 1 9 1 0. 8 4 0 0. 0 0 3 40.595 20 1 1 13 . 3 1 9 4. 4 3 8 17 . 7 5 7 7. 5 4 0 14 . 6 9 0 0. 9 2 6 0. 0 0 3 40.916 20 1 2 13 . 1 9 3 4. 6 4 9 17 . 8 4 2 7. 3 2 0 14 . 5 9 1 0. 9 9 9 0. 0 0 3 40.755 20 1 3 12 . 8 2 6 4. 4 4 3 17 . 2 6 9 7. 0 7 5 14 . 0 7 3 1. 0 7 9 0. 0 0 3 39.499 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 . 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 . Ta x r a t e s a r e p e r $ 1 , 0 0 0 o f a s s e s s e d v a l u e . 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 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 12 6 Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections1 Collections 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 2009 43,168 43,118 99.9 18 43,136 99.9 2010 45,393 45,318 99.8 17 45,335 99.9 2011 47,789 47,826 100.1 8 47,834 100.1 2012 49,595 49,543 99.9 1 49,544 99.9 2013 50,407 50,139 99.5 3 50,142 99.5 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. 1 Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. Percent of Levy Collected Total as a Percent of Levy CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) 127 % o f T o t a l % of Total Ta x a b l e Ta x a b l e T a x a b l e Taxable 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 Valuation Rank Valuation 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 ) Ed u c a t i o n a l T e s t i n g S e r v i c e 22 , 4 0 9 $ 3 1. 1 2 % 47,441 $ 1 1.60 % Mi d - A m e r i c a n E n e r g y C o m p a n 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 45 , 5 0 5 1 2. 2 8 4 4 , 0 3 3 2 1.49 An n G e r d i n T r u s e ( f o r m e r l y R u s s e l l G e r d i n ) Wa r e h o u s i n g - - 0. 0 0 2 2 , 0 0 6 3 0.74 De a l e r P r o p e r t i e s I C L L C ( B i l l i o n A u t o ) Ca r D e a l e r s h i p s - - 0. 0 0 1 7 , 3 3 9 4 0.59 Al p h a I n c In d u s t r i a l - - 0. 0 0 1 6 , 0 9 0 5 0.54 Pr o c t o r & G a m b l e L L C Ma n u f a c t u r i n g C o m p a n y 16 , 5 4 6 6 0. 8 3 1 5 , 4 4 1 6 0.52 Na t i o n a l C o m p u t e r S y s t e m s ( P e a r s o n ) In f o r m a t i o n S e r v i c e s 16 , 6 5 2 5 0. 8 4 1 4 , 4 1 0 7 0.49 Un i t e d N a t u r a l F o o d s Wh 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 2 , 9 0 3 8 0.44 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 Re a l E s t a t e D e v e l o p e r 18 , 7 5 3 4 0. 9 4 1 2 , 7 3 4 9 0.43 Wa l - M a r t R e a l E s t a t e Re t a i l - - 0. 0 0 1 2 , 6 4 0 10 0.43 Ja m e A a n d L o r r e t t a C l a r k Ap a r t m e n t s 26 , 9 3 7 2 1. 3 5 - -0.00 Hy - V e e Gr o c e r y S t o r e s 14 , 1 8 6 7 0. 7 1 - -0.00 Ed w i n & E t h e l B a r k e r & B a r k e r P a r t n e r s h i p A p a r t m e n t s 12 , 4 8 1 8 0. 6 3 - -0.00 M G D L C ( S y c a m o r e M a l l ) Sh o p p i n g M a l l 10 , 9 9 1 9 0. 5 5 - -0.00 Mo e n G r o u p Re a l E s t a t e D e v e l o p e r 10 , 2 9 5 1 0 0. 5 2 - -0.00 To t a l 19 4 , 7 5 5 $ 9. 7 7 % 215,037 $ 7.26 % 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 1 2 A n n u a l R e p o r t 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 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 ) 2013 20 0 4 12 8 129 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 Rank Percentage Pr o c t o r & G a m b l e 58 9 , 8 2 2 $ 1 6. 6 6 % 59 9 , 9 6 4 $ 1 7.32 % 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 13 9 , 4 6 3 2 1. 5 8 10 8 , 1 2 9 2 1.32 Do l p h i n L a k e P o i n t ( L a k e s i d e M a n o r ) 91 , 3 2 2 3 1. 0 3 85 , 1 8 6 3 1.04 Me r c y H o s p i t a l 89 , 9 7 4 4 1. 0 2 69 , 8 8 0 4 0.85 Ca m p u s A p a r t m e n t s 76 , 6 7 8 5 0. 8 7 62 , 2 5 3 5 0.76 Ma r k I V A p t s 53 , 2 5 9 10 0. 6 0 57 , 5 8 2 6 0.70 AC T - - N/ A 53 , 0 6 4 7 0.65 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 ) 54 , 8 4 5 9 N/ A 41 , 8 0 6 8 0.51 RB D I o w a C i t y L L C ( S h e r a t o n H o t e l ) - - N/ A 34 , 1 2 0 9 0.42 Se v i l l e A p a r t m e n t s - - N/ A 31 , 5 0 4 10 0.38 Ro b e r t s D a i r y 61 , 2 3 4 7 0. 6 9 - - N/A Le a r C o r p 76 , 6 5 2 6 0. 8 7 - - N/A Un i v e r s i t y o f I o w a 59 , 7 6 2 8 0. 6 8 - - N/A 1, 2 9 3 , 0 1 1 $ 13 . 9 9 % 1, 1 4 3 , 4 8 8 $ 13.95 % To t a l W a t e r S y s t e m C h a r g e s 8, 8 5 0 , 6 0 8 $ 8, 1 9 4 , 4 6 7 $ 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 i v i s i o n 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 2 013 20 0 4 13 0 Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2004 253,454,012 8,850,608$ 2005 254,560,239 8,315,719 2006 267,107,998 8,844,993 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 2010 234,342,825 7,568,378 2011 236,838,370 7,661,898 2012 246,618,257 7,953,738 2013 254,616,773 8,194,467 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years 131 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 Rank Percentage Un i v e r s i t y o f I o w a 2, 1 3 4 , 5 2 4 $ 1 17 . 1 0 % 2, 1 9 3 , 2 5 2 $ 1 17.02 % Pr o c t o r & G a m b l e 1, 8 3 1 , 4 9 7 2 14 . 6 7 99 1 , 5 7 9 2 7.70 Io w a C i t y L a n d f i l l D i v i s i o n - - N/ A 15 6 , 7 4 9 3 1.22 Do l p h i n L a k e P o i n t ( L a k e s i d e A p t s ) 12 6 , 8 2 0 5 1. 0 2 14 7 , 3 7 9 4 1.14 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 19 0 , 4 3 5 3 N/ A 14 5 , 4 8 4 5 1.13 Me r c y H o s p i t a l 10 1 , 2 4 4 6 0. 8 1 11 8 , 4 5 8 6 0.92 Ca m p u s A p a r t m e n t s 83 , 8 1 9 8 N/ A 84 , 6 3 9 7 0.66 Ma r k I V A p a r t m e n t s - - N/ A 81 , 5 6 6 8 0.63 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 77 , 9 5 7 9 0. 6 2 73 , 5 1 6 9 0.57 RB D I o w a C i t y L L C ( S h e r a t o n H o t e l ) 70 , 1 0 1 10 0. 5 6 59 , 5 6 9 10 0.46 Ro b e r t s D a i r y 13 6 , 1 6 3 4 1. 0 9 - - N/A Le a r C o r p 88 , 2 8 8 7 0. 7 1 - - N/A 4, 8 4 0 , 8 4 8 $ 36 . 5 8 % 4, 0 5 2 , 1 9 1 $ 31.45 % To t a l S e w e r S y s t e m C h a r g e s 12 , 4 8 2 , 3 9 3 $ 12 , 8 8 3 , 6 4 1 $ 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 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 2013 20 0 4 13 2 Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2004 294,683,685 12,482,393$ 2005 297,714,953 12,557,646 2006 302,925,357 12,373,762 2007 315,199,203 11,084,369 2008 285,492,596 12,221,769 2009 276,455,246 12,499,949 2010 265,375,857 12,541,905 2011 280,303,237 12,748,695 2012 282,134,840 12,784,321 2013 285,472,392 12,883,641 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years 133 Ge n e r a l Ca p i t a l G e n e r a l To 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 R e v e n u e L o a n O b l i g a t i o n R e v e n u e Pr i m a r y o f P e r s o n a l Per Ye a r Bo n d s 1 Bo n d s 1 No t e Bo n d s 1 Bo n d s 1 Go v e r n m e n t In c o m e 2 Capita 2 20 0 4 7 9 , 4 0 3 , 2 0 7 $ - $ - $ 9 , 5 6 2 , 1 6 5 $ 1 1 4 , 6 2 6 , 1 9 0 $ 2 0 3 , 5 9 1 , 5 6 2 $ 4 . 2 7 % 3 , 2 6 4 $ 20 0 5 7 7 , 1 0 5 , 4 0 5 - 2 1 1 , 0 0 0 8, 2 0 2 , 9 9 6 10 9 , 9 1 8 , 2 3 9 19 5 , 4 3 7 , 6 4 0 3. 9 7 3,133 20 0 6 7 8 , 2 8 6 , 8 0 1 - 2 1 1 , 0 0 0 6, 8 1 3 , 8 2 8 10 4 , 9 7 5 , 2 8 8 19 0 , 2 8 6 , 9 1 7 3. 6 2 3,026 20 0 7 8 0 , 4 4 1 , 8 9 4 - 2 1 1 , 0 0 0 5, 4 5 8 , 6 3 3 99 , 8 9 2 , 3 3 7 18 6 , 0 0 3 , 8 6 4 3. 2 8 2,774 20 0 8 8 2 , 2 6 8 , 5 3 2 - 2 1 1 , 0 0 0 4, 8 8 5 , 7 1 0 94 , 5 4 9 , 3 8 6 18 1 , 9 1 4 , 6 2 8 3. 0 0 2,682 20 0 9 8 1 , 2 2 2 , 5 3 3 - 2 1 1 , 0 0 0 4, 3 1 7 , 7 8 7 87 , 8 7 5 , 8 5 5 17 3 , 6 2 7 , 1 7 5 2. 8 1 2,513 20 1 0 7 1 , 7 9 1 , 7 3 7 - 2 1 1 , 0 0 0 3, 7 3 1 , 1 6 7 79 , 2 8 1 , 8 8 8 15 5 , 0 1 5 , 7 9 2 2. 4 7 2,284 20 1 1 7 7 , 7 4 3 , 9 5 7 - 2 1 1 , 0 0 0 3, 1 3 0 , 8 4 9 75 , 8 5 7 , 3 0 6 15 6 , 9 4 3 , 1 1 2 2. 3 2 2,276 20 1 2 7 4 , 2 2 5 , 6 5 4 - 2 1 1 , 0 0 0 1, 4 8 3 , 4 7 3 69 , 0 5 9 , 3 0 7 14 4 , 9 7 9 , 4 3 4 2. 0 3 2,103 20 1 3 5 7 , 6 8 8 , 8 0 3 2, 6 1 4 , 6 4 4 21 1 , 0 0 0 1, 1 8 2 , 3 1 5 62 , 7 6 4 , 7 3 8 12 4 , 4 6 1 , 5 0 0 1. 6 7 1,775 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 B o n d s r e p o r t e d n e t o f r e l a t e d p r e m i u m s a n d d i s c o u n t s . 2 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 4 4 . Go v e r n m e n t a l A c t i v i t i e s Bu 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 13 4 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 De b t Ne 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 P a y a b l e f r o m P a y a b l e f r o m G r o s s 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 Go v e r n m e n t a l Pr o p r i e t a r y Bo n d e d D e b t Fu n d B a l a n c e Bo n d e d D e b t Assessed Value Per Capita 3 20 0 4 2 , 9 5 8 , 8 0 4 $ 79 , 4 0 3 $ 9, 5 6 2 $ 88 , 9 6 5 $ 6, 9 3 0 $ 82 , 0 3 5 $ 27.73 : 1000 1,315 $ 20 0 5 3 , 1 9 1 , 5 4 3 77 , 1 0 5 8, 2 0 3 85 , 3 0 8 3, 0 6 7 82 , 2 4 1 25.77 : 1000 1,318 20 0 6 3 , 2 9 2 , 5 0 2 78 , 2 8 7 6, 8 1 4 85 , 1 0 1 2, 7 2 5 82 , 3 7 6 25.02 : 1000 1,310 20 0 7 3 , 8 0 7 , 1 8 2 80 , 4 4 2 5, 4 5 9 85 , 9 0 1 4, 2 8 9 81 , 6 1 2 21.44 : 1000 1,217 20 0 8 3 , 9 2 8 , 3 6 1 82 , 2 6 8 4, 8 8 6 87 , 1 5 4 8, 6 9 1 78 , 4 6 3 19.97 : 1000 1,157 20 0 9 4 , 2 6 3 , 6 1 5 81 , 2 2 2 4, 3 1 8 85 , 5 4 0 11 , 7 5 9 73 , 7 8 1 17.30 : 1000 1,068 20 1 0 4 , 3 7 6 , 1 5 1 71 , 7 9 2 3, 7 3 1 75 , 5 2 3 13 , 9 5 2 61 , 5 7 1 14.07 : 1000 907 20 1 1 4 , 4 4 9 , 8 6 0 77 , 7 4 4 3, 1 3 1 80 , 8 7 5 13 , 1 5 1 67 , 7 2 4 15.22 : 1000 982 20 1 2 4 , 5 2 0 , 1 4 2 74 , 2 2 6 1, 4 8 3 75 , 7 0 9 11 , 0 0 9 64 , 7 0 0 14.31 : 1000 938 20 1 3 4 , 6 1 5 , 5 2 7 57 , 6 8 9 1, 1 8 2 58 , 8 7 1 6, 5 2 7 52 , 3 4 4 11.34 : 1000 746 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 , n e t o f r e l a t e d p r e m i u m s a n d d i s c o u n t s . 2 Ci t y o f I o w a C i t y B u d g e t B o o k . 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 4 4 . 13 5 CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES1 Last Ten Fiscal Years (amounts expressed in thousands) Total General Fiscal Year Governmental Ratio of Debt Ended Total Expenditures Service to General June 30 Principal2 Interest2 Debt Service and Transfers Expenditures 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 2009 8,418 3,364 11,782 102,607 .11 : 1.00 2010 9,354 3,064 12,418 108,950 .11 : 1.00 2011 10,386 2,889 13,275 120,424 .11 : 1.00 2012 13,294 2,543 15,837 119,242 .13 : 1.00 2013 16,465 2,339 18,804 129,814 .14 : 1.00 Notes: 1 General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. 2 Beginning in FY13, Taxable Urban Renewal Revenue Bonds are also included. 136 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2013 (amounts expressed in thousands, except per capita) Total General Percent Amount Long-Term Applicable Applicable Name of Direct Debt to the City of to the City of Governmental Unit Outstanding Iowa City Iowa City Per Capita City of Iowa City 60,514$ 100.00 %60,514$ 862.8527$ Iowa City Community School District 15,165 58.38 8,853 126.2288 Total 75,679$ 69,367$ 989.0815$ Per capita assessed value 65,811$ 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. 137 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 2012 2013 De b t L i m i t 14 8 , 1 2 5 $ 15 9 , 7 5 9 $ 16 4 , 7 9 9 $ 19 0 , 7 6 9 $ 19 6 , 5 8 9 $ 21 3 , 3 5 0 $ 21 8 , 9 7 4 $ 22 2 , 6 5 5 $ 226,982 $ 230,776 $ 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 8 8 , 9 8 5 85 , 2 9 0 85 , 0 6 0 85 , 8 4 0 87 , 0 9 0 84 , 9 9 5 75 , 0 5 0 80 , 5 7 5 75,320 58,550 Le g a l d e b t m a r g i n 5 9 , 1 4 0 $ 74 , 4 6 9 $ 79 , 7 3 9 $ 10 4 , 9 2 9 $ 10 9 , 4 9 9 $ 12 8 , 3 5 5 $ 14 3 , 9 2 4 $ 14 2 , 0 8 0 $ 151,662 $ 172,226 $ 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 60 . 0 7 % 5 3 . 3 9 % 5 1 . 6 1 % 4 5 . 0 0 % 4 4 . 3 0 % 3 9 . 8 4 % 3 4 . 2 7 % 3 6 . 1 9 % 3 3 . 1 8 % 2 5 . 3 7 % 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 230,776 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 58,550 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 . 172,226 $ 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 ) 4,615,527 $ 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 1 3 13 8 Fi s c a l Ye a r P r i n c i p a l In t e r e s t To 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 W a t e r R e v e n u e Principal Outstanding at Beginning of Fiscal Year 20 1 3 16 , 7 7 0 , 0 0 0 $ 2, 3 5 6 , 1 2 4 $ 19 , 1 2 6 , 1 2 4 $ 12 , 2 1 9 , 5 2 3 $ 6, 5 4 6 , 1 4 3 $ 360,458 $ 75,320,000 $ 20 1 4 10 , 5 7 5 , 0 0 0 1, 7 7 7 , 3 5 5 12 , 3 5 2 , 3 5 5 11 , 6 4 4 , 6 9 2 36 3 , 3 3 8 344,325 58,550,000 20 1 5 10 , 4 3 5 , 0 0 0 1, 4 6 2 , 2 8 8 11 , 8 9 7 , 2 8 8 11 , 5 0 2 , 9 5 9 61 , 1 0 4 333,225 47,975,000 20 1 6 9, 8 7 0 , 0 0 0 1, 1 4 1 , 1 8 0 11 , 0 1 1 , 1 8 0 10 , 6 3 3 , 3 9 8 60 , 6 5 7 317,125 37,540,000 20 1 7 8, 2 7 0 , 0 0 0 83 3 , 8 8 8 9, 1 0 3 , 8 8 8 8, 7 3 7 , 3 3 0 60 , 4 9 6 306,062 27,670,000 20 1 8 7, 1 2 0 , 0 0 0 58 6 , 5 4 4 7, 7 0 6 , 5 4 4 7, 6 4 6 , 2 2 6 60 , 3 1 8 - 19,400,000 20 1 9 4, 6 3 5 , 0 0 0 36 0 , 8 6 9 4, 9 9 5 , 8 6 9 4, 9 3 5 , 7 4 8 60 , 1 2 1 - 12,280,000 20 2 0 3, 9 9 0 , 0 0 0 22 2 , 0 4 4 4, 2 1 2 , 0 4 4 4, 1 5 1 , 5 4 2 60 , 5 0 2 - 7,645,000 20 2 1 2, 6 5 0 , 0 0 0 10 2 , 8 3 1 2, 7 5 2 , 8 3 1 2, 6 9 2 , 2 7 5 60 , 5 5 6 - 3,655,000 20 2 2 1, 0 0 5 , 0 0 0 22 , 6 1 2 1, 0 2 7 , 6 1 2 96 6 , 4 3 1 61 , 1 8 1 - 1,005,000 To t a l 75 , 3 2 0 , 0 0 0 $ 8, 8 6 5 , 7 3 5 $ 84 , 1 8 5 , 7 3 5 $ 75 , 1 3 0 , 1 2 4 $ 7, 3 9 4 , 4 1 6 $ 1,661,195 $ 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 13 9 Fiscal Year Net Revenue Annual Debt Service2 Ended Available for Ratio of June 30 Revenue Expenses1 Debt Service Principal Interest Total Coverage Parking Revenue3 2004 4,164 $ 2,319$ 1,845$ 395$ 687 $ 1,082 $ 1.71 2005 4,360 2,377 1,983 305 663 968 2.05 2006 4,161 2,380 1,781 320 645 965 1.85 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 20106 5,509 3,149 2,360 390 504 894 2.64 2011 5,389 2,920 2,469 420 391 811 3.04 2012 4,945 3,034 1,911 500 339 839 2.28 2013 5,122 3,549 1,573 515 324 839 1.87 Wastewater Treatment Revenue4 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 20086 13,332 4,581 8,751 4,105 3,071 7,176 1.22 20096 13,462 5,202 8,260 4,260 2,813 7,073 1.17 20106 13,174 5,050 8,124 4,205 2,307 6,512 1.25 20116 13,281 5,477 7,804 1,840 2,054 3,894 2.00 2012 13,175 5,663 7,512 4,615 1,693 6,308 1.19 2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24 Water Revenue5 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 20086 9,258 5,348 3,910 955 1,229 2,184 1.79 20096 8,833 5,726 3,107 995 1,171 2,166 1.43 20106 8,336 5,153 3,183 680 1,055 1,735 1.83 2011 8,354 5,464 2,890 1,110 902 2,012 1.44 20126 8,649 5,653 2,996 1,200 861 2,061 1.45 20136 9,342 6,348 2,994 845 758 1,603 1.87 Notes: 1 Excludes depreciation and interest. 2 Includes principal and interest of revenue bonds only. 3 Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.25. 4 Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 5 Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service" is required to be at least 1.10. 6 Refunded Revenue Bonds paid are excluded from the principal of Annual Debt Service. CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) 140 Fi s c a l Ye a r P r i n c i p a l In t e r e s t To t a l Se w e r R e v e n u e P a r k i n g R e v e n u e W a t e r R e v e n u e Ta x I n c r e m e n t Fi n a n c i n g Principal Outstanding at Beginning of Fiscal Year 20 1 3 6, 2 2 5 , 0 0 0 $ 2, 6 6 6 , 4 7 8 $ 8, 8 9 1 , 4 7 8 $ 6, 4 1 1 , 8 8 8 $ 83 8 , 9 7 5 $ 1, 6 0 2 , 5 2 9 $ 38,086 $ 68,185,000 $ 20 1 4 5, 1 1 5 , 0 0 0 2, 4 5 2 , 2 6 2 7, 5 6 7 , 2 6 2 4, 6 6 8 , 6 8 1 83 8 , 3 0 0 1, 9 8 4 , 9 4 6 75,335 64,615,000 20 1 5 5, 2 9 0 , 0 0 0 2, 2 8 2 , 0 0 0 7, 5 7 2 , 0 0 0 4, 6 7 4 , 9 0 0 83 2 , 2 5 0 1, 9 8 9 , 5 1 5 75,335 59,500,000 20 1 6 5, 6 3 0 , 0 0 0 2, 0 9 0 , 6 1 9 7, 7 2 0 , 6 1 9 4, 6 9 5 , 1 1 9 83 2 , 9 5 0 1, 9 8 7 , 2 1 5 20 5 , 3 3 5 54,210,000 20 1 7 5, 8 0 0 , 0 0 0 1, 8 8 1 , 7 0 6 7, 6 8 1 , 7 0 6 4, 6 5 9 , 5 7 5 83 0 , 1 5 0 1, 9 8 7 , 9 4 6 20 4 , 0 3 5 48,580,000 20 1 8 6, 0 3 5 , 0 0 0 1, 6 6 1 , 2 7 3 7, 6 9 6 , 2 7 3 4, 6 6 1 , 5 7 5 83 1 , 4 5 0 1, 9 9 5 , 9 0 3 20 7 , 3 4 5 42,780,000 20 1 9 6, 2 4 0 , 0 0 0 1, 4 2 9 , 9 5 0 7, 6 6 9 , 9 5 0 4, 6 4 6 , 4 0 0 82 6 , 8 5 0 1, 9 9 1 , 5 1 5 20 5 , 1 8 5 36,745,000 20 2 0 6, 5 0 0 , 0 0 0 1, 1 7 5 , 4 0 1 7, 6 7 5 , 4 0 1 4, 6 4 7 , 4 6 3 82 6 , 3 5 0 1, 9 9 4 , 1 0 3 20 7 , 4 8 5 30,505,000 20 2 1 6, 2 4 0 , 0 0 0 90 9 , 0 2 9 7, 1 4 9 , 0 2 9 4, 1 1 8 , 0 1 3 82 8 , 9 0 0 1, 9 9 7 , 5 7 1 20 4 , 5 4 5 24,005,000 20 2 2 5, 0 7 5 , 0 0 0 66 9 , 8 6 3 5, 7 4 4 , 8 6 3 2, 7 1 7 , 2 8 8 82 4 , 4 6 9 1, 9 9 6 , 7 8 1 20 6 , 3 2 5 17,765,000 20 2 3 3, 9 1 0 , 0 0 0 47 9 , 7 2 8 4, 3 8 9 , 7 2 8 1, 3 6 1 , 2 5 0 82 3 , 8 6 9 1, 9 9 6 , 7 6 4 20 7 , 8 4 5 12,690,000 20 2 4 2, 9 4 5 , 0 0 0 33 0 , 0 4 2 3, 2 7 5 , 0 4 2 79 3 , 2 5 0 82 4 , 0 0 0 1, 4 5 3 , 8 4 7 20 3 , 9 4 5 8,780,000 20 2 5 2, 9 8 0 , 0 0 0 19 2 , 8 5 1 3, 1 7 2 , 8 5 1 79 7 , 2 5 0 71 2 , 3 7 5 1, 4 5 8 , 4 8 1 20 4 , 7 4 5 5,835,000 20 2 6 1, 7 7 0 , 0 0 0 83 , 2 5 8 1, 8 5 3 , 2 5 8 79 4 , 3 7 5 - 85 3 , 7 8 8 20 5 , 0 9 5 2,855,000 20 2 7 16 5 , 0 0 0 39 , 9 7 5 20 4 , 9 7 5 - - - 20 4 , 9 7 5 1,085,000 20 2 8 17 0 , 0 0 0 34 , 3 6 5 20 4 , 3 6 5 - - - 20 4 , 3 6 5 920,000 20 2 9 17 5 , 0 0 0 28 , 2 4 5 20 3 , 2 4 5 - - - 20 3 , 2 4 5 750,000 20 3 0 18 5 , 0 0 0 21 , 7 7 0 20 6 , 7 7 0 - - - 20 6 , 7 7 0 575,000 20 3 1 19 0 , 0 0 0 14 , 9 2 5 20 4 , 9 2 5 - - - 20 4 , 9 2 5 390,000 20 3 2 20 0 , 0 0 0 7, 8 0 0 20 7 , 8 0 0 - - - 20 7 , 8 0 0 200,000 To t a l 70 , 8 4 0 , 0 0 0 $ 18 , 4 5 1 , 5 4 0 $ 89 , 2 9 1 , 5 4 0 $ 49 , 6 4 7 , 0 2 7 $ 10 , 6 7 0 , 8 8 8 $ 25 , 2 9 0 , 9 0 4 $ 3, 6 8 2 , 7 2 1 $ Pa y m e n t 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 Fu n d i n g S o u r c e ( s ) 14 1 Fiscal Year Principal Interest Total 2013 515,000$ 323,975$ 838,975$ 2014 530,000 308,300 838,300 2015 540,000 292,250 832,250 2016 560,000 272,950 832,950 2017 580,000 250,150 830,150 2018 605,000 226,450 831,450 2019 625,000 201,850 826,850 2020 650,000 176,350 826,350 2021 680,000 148,900 828,900 2022 705,000 119,469 824,469 2023 735,000 88,869 823,869 2024 770,000 54,000 824,000 2025 695,000 17,375 712,375 Total 8,190,000$ 2,480,888$ 10,670,888$ Fiscal Year Principal Interest Total 2013 4,865,000$ 1,546,888$ 6,411,888$ 2014 3,250,000 1,418,681 4,668,681 2015 3,370,000 1,304,900 4,674,900 2016 3,520,000 1,175,119 4,695,119 2017 3,625,000 1,034,575 4,659,575 2018 3,775,000 886,575 4,661,575 2019 3,915,000 731,400 4,646,400 2020 4,090,000 557,463 4,647,463 2021 3,740,000 378,013 4,118,013 2022 2,485,000 232,288 2,717,288 2023 1,220,000 141,250 1,361,250 2024 700,000 93,250 793,250 2025 740,000 57,250 797,250 2026 775,000 19,375 794,375 Total 40,070,000$ 9,577,027$ 49,647,027$ (continued) CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Parking Outstanding Sewer Outstanding 142 Fiscal Year Principal Interest Total 2013 845,000$ 757,529$ 1,602,529$ 2014 1,335,000 649,946 1,984,946 2015 1,380,000 609,515 1,989,515 2016 1,420,000 567,215 1,987,215 2017 1,465,000 522,946 1,987,946 2018 1,520,000 475,903 1,995,903 2019 1,565,000 426,515 1,991,515 2020 1,620,000 374,103 1,994,103 2021 1,680,000 317,571 1,997,571 2022 1,740,000 256,781 1,996,781 2023 1,805,000 191,764 1,996,764 2024 1,325,000 128,847 1,453,847 2025 1,390,000 68,481 1,458,481 2026 835,000 18,788 853,788 Total 19,925,000$ 5,365,904$ 25,290,904$ Fiscal Year Principal Interest Total 2013 -$ 38,086$ 38,086$ 2014 - 75,335 75,335 2015 - 75,335 75,335 2016 130,000 75,335 205,335 2017 130,000 74,035 204,035 2018 135,000 72,345 207,345 2019 135,000 70,185 205,185 2020 140,000 67,485 207,485 2021 140,000 64,545 204,545 2022 145,000 61,325 206,325 2023 150,000 57,845 207,845 2024 150,000 53,945 203,945 2025 155,000 49,745 204,745 2026 160,000 45,095 205,095 2027 165,000 39,975 204,975 2028 170,000 34,365 204,365 2029 175,000 28,245 203,245 2030 185,000 21,770 206,770 2031 190,000 14,925 204,925 2032 200,000 7,800 207,800 Total 2,655,000$ 1,027,721$ 3,682,721$ Taxable Urban Renewal Outstanding Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Water 143 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 A v e r a g e Sc h o o l Re t a i l Ye a r Po p u l a t i o n 6 In c o m e 1 In c o m e 1 In c r e a s e En r o l l m e n t 2 Sa l e s 4 20 0 4 62 , 3 8 0 4 , 7 6 5 , 3 9 6 $ 34 , 0 0 2 $ 6. 4 4 % 1 1 , 8 8 5 4. 0 % 85 4 , 1 5 6 , 4 4 2 $ 20 0 5 62 , 3 8 0 4 , 9 2 0 , 8 7 2 34 , 7 4 0 2. 1 7 1 1 , 8 6 6 2. 9 87 8 , 0 0 9 , 1 7 1 20 0 6 62 , 8 8 7 5 , 2 6 0 , 8 5 2 36 , 6 1 0 5. 3 8 1 1 , 9 8 8 2. 4 90 1 , 4 8 1 , 0 6 6 20 0 7 67 , 0 6 2 5 , 6 7 7 , 6 2 8 38 , 8 5 4 6. 1 3 1 2 , 8 2 4 2. 9 93 4 , 9 7 1 , 4 2 8 20 0 8 67 , 8 3 1 6 , 0 6 2 , 7 7 7 40 , 7 4 5 4. 8 7 1 2 , 9 1 1 3. 1 95 8 , 5 0 9 , 7 2 9 20 0 9 69 , 0 8 6 6 , 1 8 0 , 2 4 4 40 , 7 7 9 0. 0 8 1 3 , 0 4 9 4. 3 90 5 , 1 3 9 , 4 6 1 20 1 0 67 , 8 6 2 6 , 2 8 0 , 1 6 7 41 , 0 4 8 0. 6 6 1 3 , 3 1 9 5. 0 72 5 , 3 2 9 , 7 2 3 20 1 1 68 , 9 4 7 6 , 7 7 9 , 3 3 4 4 3 , 6 3 1 6. 2 9 1 3 , 6 3 8 4. 8 74 1 , 4 0 7 , 0 2 1 20 1 2 68 , 9 4 7 7 , 1 5 5 , 4 5 6 4 5 , 2 2 2 3. 6 5 1 3 , 8 6 2 4. 1 76 7 , 1 2 2 , 5 5 5 20 1 3 5 70 , 1 3 3 7 , 4 3 9 , 0 6 0 4 7 , 0 1 4 3. 9 6 1 4 , 0 5 7 3. 8 79 3 , 2 0 1 , 3 4 2 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 P e r s o n a l I n c o m e f o r 2 0 1 3 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 . 6 US C e n s u s B u r e a u 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 Un e m p l o y m e n t Ra t e 3 14 4 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 Rank Percentage Un i v e r s i t y o f I o w a a n d U n i v e r s i t y o f I o w a H o s p i t a l a n d C l i n i c s 23 , 6 0 8 1 30 , 8 0 4 1 33.2 % 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 1, 7 2 8 2 1, 7 0 0 2 1.8 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 0 0 5 1, 5 6 2 3 1.7 Ci t y o f I o w a C i t y 60 0 9 1, 2 8 3 4 1.3 NC S P e a r s o n 1, 3 0 0 4 1, 2 0 0 5 1.4 Me r c y H o s p i t a l 1, 1 5 0 6 1, 1 8 7 6 1.3 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 ) 1, 3 3 4 3 1, 1 8 1 7 1.3 Hy - V e e 92 7 7 1, 1 6 6 8 1.3 Sy s t e m U n l i m i t e d - - 89 0 9 1.0 In t e r n a t i o n a l A u t o m o t i v e C o m p o n e n t s f o r m e r l y L e a r C o r p 85 0 8 78 5 1 0 0.8 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 ) 50 0 1 0 - -N/A 33 , 1 9 7 41 , 7 5 8 45.0 % To t a l E m p l o y e e s 92 , 7 0 0 So u r c e s : Io w a C i t y A r e a D e v e l o p m e n t G r o u p 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 2 0 0 4 ; 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 . 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 20 0 4 2013 14 5 2004 2005 2006 2007 2008 2009 2010 Public Safety Police 97.25 94.25 94.25 96.25 96.25 103.25 103.25 Animal Shelter1 6 6 6 6 6 6 6 Fire 58 56 57 57 57 57 57 Inspection Services 14.13 13.88 14.88 14.88 15.38 15.55 15.55 Public Works Public Works Admin 2 2 2 2 2 2 2 Engineering 13.6 11.6 11.6 11.6 11.35 11.35 11.35 Flood Recovery - - - - - - - Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 2 Recreation 15.17 15.17 15.17 15.42 15.42 15.42 15.42 Parks 13 12 13 13 13 13 13 Forestry 3 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 3 CBD Maintenance 3 3 3 3 3 3 3 Library 43.25 42.63 42.63 42.89 43.14 43.14 43.14 Senior Center 5.81 6.31 6.31 6.31 6.31 6.31 6.31 Community and Economic Development 9.45 8.45 8.45 8.45 8.95 9.05 9.05 General Government City Council 7 7 7 7 7 7 7 City Clerk 4 4 4 4 4 4 4 City Attorney 6.6 6.6 6.6 6.6 6.6 6 6 City Manager2 3 3 3 3 3 3 3 Personnel 4 4 4 4 4 4 4 Human Rights 2.5 2.5 2.5 2.5 2.5 2.5 2.5 Finance 28.61 26.61 26.75 26.75 26.5 26.3 26.3 Government Buildings 4.96 4.96 4.96 4.96 4.96 4.96 4.96 Energy Conservation 0.5 0.5 0.5 0.5 0.25 0.25 0.25 Transit3 48.5 50.5 50.5 50.5 54.75 58.5 58.5 Special Revenue Employee Benefits 0.34 0.34 0.39 0.39 0.29 0.29 0.29 CIP / Roads 7 3 2 2 1 2 2 Flood Mitigation Grants - - - - - - - Community Development 5.35 4.35 4.35 4.35 3.98 3.88 3.88 UniverCity Program Traffic Engineering 5.65 5.65 4.15 4.15 4.15 4.15 4.15 Streets 22 22 23.5 23.5 23.5 25.5 25.5 MPOJC (formerly JCCOG)6.1 6.1 6.6 6.6 6.6 6.6 6.6 Other Shared Revenues Library Development 1.5 0.8 1 1 1 1 1 Capital Project Administration - - - - - - - Internal Service Funds Information Technology 7.5 8 11.75 12 12.3 12.3 12.3 Equipment 11.26 11.25 11.26 11.26 11.26 11.26 11.26 Central Services 0.75 0.75 0.75 0.75 0.75 0.75 0.75 Risk Management 1.33 1.32 1.38 1.38 1.73 1.93 1.93 Business-Type Activities Parking 31.5 32.75 32.75 32.75 32.75 33.25 33.25 Mass Transit3 Wastewater Treatment 27.3 27.3 25.5 25.5 25.5 25.6 25.6 Water 31.7 31.7 32.5 32 32.75 32.75 32.75 Sanitation 32.35 34.35 33.85 33.85 34.85 34.85 35.85 Airport 2 2 1.6 1.6 1.6 1.75 1.75 Cable Television 6.19 6.19 6.19 6.19 6.19 6.44 6.44 Stormwater - - 0.5 1 2 1.9 1.9 Housing Authority 12.5 12.75 13.25 13.25 13.25 13.25 13.25 Total 610.65 599.56 605.37 608.13 614.81 629.03 630.03 Source: City's Financial Plan CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-Time Equivalent Employees as of June 30 146 2011 2012 2013 98 97 103 6 6 0 66 65 65 15.55 15.55 15.55 2 2 2 12.1 12.1 12.1 0.4 0.4 0.4 2 2 2 15.42 15.42 15.42 13 13 13 3 3 3 3 3 3 3 3 3 43.14 43.64 43.63 6.31 6.5 6.5 9.1 9.1 8.4 7 7 7 4 4 4 5.6 5.6 5.6 3 3 5 4 4 4 2.5 2.5 2 26.24 27.53 23.47 4.96 4.83 4.83 - - 56.25 56.25 0 0.26 0.55 0.55 - - 1.6 1.6 3.83 3.83 3.33 0.2 4.15 4.15 4.15 25.5 25.5 25.5 6.6 6.6 5.6 1.6 1 1 1 3 5 6 11.3 11.8 10.86 11.26 11.26 10.75 0.75 0.75 0.76 2.01 1.8 1.8 32.75 32.75 29.25 51.75 25.6 25.4 25.4 32.75 32.75 32.75 35.85 37.85 37.85 1.75 1.75 1 6.69 6.63 6.63 1.9 2.1 2.1 13.25 13.25 13.18 633.37 637.74 623.91 147 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 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, 2 8 8 7 , 5 2 8 6 , 8 9 5 6 , 5 0 5 6 , 4 3 4 6 , 4 8 6 5 , 9 8 3 6 , 5 9 0 5 , 9 1 1 4 , 4 6 8 T r a f f i c V i o l a t i o n s 8, 5 1 5 7 , 4 2 8 8 , 1 9 8 6 , 6 8 4 5 , 8 2 7 4 , 4 6 0 4 , 4 4 6 3 , 4 0 3 3 , 7 6 1 2 , 4 9 9 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, 5 1 8 3 , 5 9 6 3 , 6 7 9 4 , 1 3 6 4 , 2 5 7 4 , 1 5 2 4 , 4 7 2 4 , 6 3 5 5 , 1 7 3 4 , 7 1 3 I n s p e c t i o n s c o n d u c t e d 97 5 1 , 0 8 3 1 , 2 3 2 1 , 4 9 5 1 , 7 1 2 1 , 9 5 9 2 , 1 4 5 1 , 8 0 6 1 , 9 7 0 1 , 4 3 1 Pa r k i n g P a r k i n g V i o l a t i o n s 15 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 1 2 6 , 0 5 0 1 1 8 , 7 1 7 1 0 9 , 5 5 3 9 6 , 1 1 7 8 8 , 9 0 9 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 3 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 1 2 , 3 4 0 , 0 0 0 1 2 , 8 6 0 , 0 0 0 1 0 , 3 7 0 , 0 0 0 8 , 2 8 0 , 0 0 0 9 , 8 4 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 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 4 1 , 0 0 0 , 0 0 0 4 1 , 1 0 0 , 0 0 0 4 1 , 1 0 0 , 0 0 0 4 1 , 1 0 0 , 0 0 0 4 1 , 1 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 21 , 1 6 5 2 1 , 5 5 2 2 2 , 0 4 6 2 2 , 4 8 1 2 2 , 9 0 9 2 3 , 1 6 1 2 3 , 3 4 4 2 3 , 5 2 7 2 3 , 5 2 9 2 4 , 0 5 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 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 5 , 5 0 8 , 0 7 7 5 , 4 8 3 , 2 5 5 5 , 5 0 8 , 8 0 0 5 , 4 8 6 , 8 0 0 5 , 5 3 5 , 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 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 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 21 , 5 2 7 2 1 , 9 7 2 2 2 , 5 2 9 2 2 , 9 7 3 2 3 , 0 9 7 2 3 , 3 9 1 2 3 , 6 5 7 2 3 , 8 7 5 2 4 , 0 8 6 2 4 , 4 4 2 C o m m e r c i a l 1, 3 7 7 1 , 4 0 0 1 , 4 0 8 1 , 4 4 8 1 , 4 6 5 1 , 4 9 4 1 , 4 8 1 1 , 4 9 8 1 , 4 8 9 1 , 4 9 1 I n d u s t r i a l 13 13 13 13 14 15 15 15 15 15 O t h e r 12 5 1 2 9 1 3 4 1 3 7 1 3 8 1 4 4 1 5 3 1 5 6 2 0 0 2 0 4 T o t a l C u s t o m e r s 23 , 0 4 2 2 3 , 5 1 4 2 4 , 0 8 4 2 4 , 5 7 1 2 4 , 7 1 4 2 5 , 0 4 4 2 5 , 3 0 6 2 5 , 5 4 4 2 5 , 7 9 0 2 6 , 1 5 2 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 13 , 9 8 3 1 4 , 1 5 8 1 4 , 3 7 1 1 4 , 5 5 6 1 4 , 5 7 4 1 4 , 7 0 0 1 4 , 8 3 1 1 4 , 9 2 6 1 5 , 0 3 0 1 5 , 1 7 7 T o n n a g e 8, 7 1 6 8 , 6 6 7 8 , 4 6 3 8 , 7 2 2 8 8 3 4 8 , 7 4 7 8 , 8 6 9 8 , 9 6 9 8 , 9 3 5 8 , 9 5 6 L a n d f i l l T o n n a g e 10 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 1 4 0 , 8 1 0 1 5 0 , 3 6 9 1 4 7 , 2 6 5 1 4 8 , 9 5 3 1 1 1 , 4 4 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 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 1 3 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 0 9 / 2 3 / 1 3 . 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 1 3 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 / 0 7 / 1 3 . 3 Nu m b e r s f o r F Y 0 7 a n d a f t e r 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 14 8 149 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 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 17 1 7 1 7 1 7 1 7 1 7 1 8 1 8 1 8 1 8 F i r e S t a t i o n s 3 3 3 3 3 3 3 3 4 4 F i r e a p p a r a t u s 8 8 8 8 9 9 9 9 11 11 Pu b l i c W o r k s S t r e e t s M i l e s 25 9 2 6 2 2 6 2 2 6 8 2 6 9 2 7 0 2 7 2 2 7 2 2 7 5 2 7 6 S t r e e t l i g h t s 3, 3 5 2 3 , 3 5 7 3 , 3 7 8 3 , 3 9 5 3 , 4 0 3 3 , 4 0 8 3 , 4 1 0 3 , 4 1 2 3 , 4 1 2 3 , 4 1 2 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 40 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 P a r k s 61 6 1 6 1 6 1 6 1 6 1 4 0 4 1 4 1 4 2 A c r e a g e 1, 4 0 0 1 , 4 0 0 1 , 4 0 0 1 , 6 0 0 1 , 6 0 3 1 6 0 3 1 3 3 5 1 3 5 4 1 4 4 1 1 5 0 6 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 s 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 29 2 9 2 9 2 9 3 1 3 0 3 0 3 0 3 0 2 7 T e n n i s c o u r t s 12 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 25 2 5 2 5 2 5 2 5 2 0 2 0 2 0 2 0 2 0 (continued) CI T Y O F I O W A C I T Y , I O W A La s t T e n F i s c a l Y e a r s CA P I T A L A S S E T S B Y F U N C T I O N 15 0 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Pa r k i n g F a c i l i t i e s 4 4 5 5 5 5 5 5 5 5 S p a c e s 2, 5 3 7 2 , 5 3 7 3 , 1 3 7 3 , 1 0 0 3 , 0 8 5 3 , 0 8 6 3 , 0 8 6 3 , 0 8 6 3 , 0 8 6 3 , 0 8 6 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 27 4 2 7 7 2 8 0 2 8 6 2 8 8 2 8 9 2 9 1 2 9 2 2 9 4 2 9 5 M i l e s o f s t o r m s e w e r 10 2 1 0 5 1 1 0 1 1 7 1 1 8 1 2 0 1 2 2 1 2 4 1 2 7 1 2 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 21 , 1 6 5 2 1 , 5 5 2 2 2 , 0 4 6 2 2 , 4 8 1 2 2 , 5 7 6 2 2 , 8 7 5 2 3 , 0 9 3 2 3 , 3 0 8 2 3 , 5 2 9 2 3 , 8 5 1 Wa t e r M i l e s o f w a t e r m a i n s 24 9 2 5 2 2 5 7 2 6 0 2 6 2 2 6 3 2 6 4 2 6 4 2 6 6 2 6 8 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 2 , 3 4 0 2 , 4 4 8 2 , 4 7 4 2 , 5 6 9 2 , 5 7 5 2 , 6 3 5 2 , 6 6 2 2 , 6 8 0 2 , 7 3 5 3 , 3 3 0 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 20 0 2 0 0 2 0 0 2 0 0 3 9 5 3 9 5 3 9 5 3 9 5 4 1 1 4 1 1 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 . CI T Y O F I O W A C I T Y , I O W A C AP 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 15 1 152 www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 | Dubuque, IA 52002-2273 | T 563.556.1790 | F 563.557.7842 | EOE 153 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, (City) as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 19, 2013. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in Part II of the accompanying schedule of findings and questioned costs as item 2013-A to be a material weakness. 154 A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Comments involving statutory and other legal matters about the City’s operations for the year ended June 30, 2013, are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City and are reported in Part IV of the accompanying Schedule of Findings and Questioned Costs. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretations of those statutes. City’s Response to Finding The City’s response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Dubuque, Iowa December 19, 2013 www.eidebailly.com 3999 Pennsylvania Ave., Ste. 100 | Dubuque, IA 52002-2273 | T 563.556.1790 | F 563.557.7842 | EOE 155 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by OMB Circular A-133 To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Report on Compliance for Each Major Federal Program We have audited the City of Iowa City, Iowa’s (City) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2013. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Each Major Federal Program In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. 156 Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Dubuque, Iowa December 19, 2013 157 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Federal CFDA Federal Number Expenditures U.S. Department of Commerce: Direct program: Economic Adjustment Assistance 11.307 18,803,973$ Economic Adjustment Assistance 11.307 329,688 Total U.S. Department of Commerce 19,133,661 U.S. Department of Housing and Urban Development: Direct program: Community Development Block Grants/ Entitlement Grants 14.218 990,119 Community Development Block Grants/ Entitlement Grants 14.218 558,125 Community Development Block Grants/Entitlement Grants 14.218 229,814 1,778,058 Pass-through program from:Iowa Economic Development Authority: Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRHB-225 1,420,382 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRH-210 629,583 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRI-271 9,852,193 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRI-273 299,323 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRIEF-276 223,701 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRB-204 20,078 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRMH-215 345 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRIEF-274 111,464 Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRIEF-275 IC 1,008 Grantor/Program Pass-Through Number Entity Identifying 158 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Federal CFDA Federal Number Expenditures U.S. Department of Housing and Urban Development: (continued) Pass-through program from: (continued)Iowa Economic Development Authority: (continued) Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRMI-007 91,859$ Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii 14.228 08-DRH-010 337,042 12,986,978 Direct program: Home Investment Partnerships Program 14.239 224,238 Home Investment Partnerships Program 14.239 210,480 Home Investment Partnerships Program 14.239 207,939 Home Investment Partnerships Program 14.239 131,154 773,811 Public and Indian Housing 14.850 122,679 Section 8 Housing Choice Vouchers 14.871 6,670,788 Public Housing Capital Fund 14.872 121,379 Public Housing Capital Fund 14.872 53,026 Public Housing Capital Fund 14.872 228 174,633 Total U.S. Department of Housing and Urban Development 22,506,947 U.S. Department of Justice: Pass-through program from:Iowa Department of Justice: Violence Against Women Formula Grants 16.588 VW-13-34 43,086 Direct program: Bulletproof Vest Partnership Program 16.607 2,840 Bulletproof Vest Partnership Program 16.607 401 3,241 Public Safety Partnership and Community Policing Grants 16.710 44,356 Pass-through program from:Governor’s Office of Drug Control Policy:Public Safety Partnership and Community Policing Grants 16.710 10-Hotspots/Interdiction 18,491 62,847 Pass-Through Entity Identifying Grantor/Program Number 159 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Federal CFDA Federal Number Expenditures U.S. Department of Justice: (continued) JAG Program Cluster: Direct program: Edward Byrne Memorial Justice Assistance Grant Program 16.738 29,087$ Edward Byrne Memorial Justice Assistance Grant Program 16.738 24,880 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15,438 Pass-through program from: Governor’s Office of Drug Control Policy: Edward Byrne Memorial Justice Assistance Grant Program 16.738 10JAG-42356 64,370 133,775 Pass-through program from:Governor’s Office of Drug Control Policy: ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories 16.803 10JAG-42356 32,262 Direct program:ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 16.804 23,724 Total JAG Program Cluster 189,761 Total U.S. Department of Justice 298,935 U.S. Department of Transportation: Direct program: Airport Improvement Program 20.106 2,018,623 Airport Improvement Program 20.106 130,396 Airport Improvement Program 20.106 10,887 Airport Improvement Program 20.106 7,740 2,167,646 Pass-Through Entity Identifying Grantor/Program Number 160 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Federal CFDA Federal Number Expenditures U.S. Department of Transportation: (continued) Highway Planning and Construction Cluster: Pass-through program from: Iowa Department of Transportation: Highway Planning and Construction 20.205 STP-U-3715(637)--70-52 1,697,342$ Highway Planning and Construction 20.205 HDP-3715(634)--71-52 367,510 Highway Planning and Construction 20.205 BRM-3715(650)--8N-52 295,344 Highway Planning and Construction 20.205 FHWA IA08-05 4,503 Iowa Department of Transportation and Metropolitan Planning Organization of Johnson County: Highway Planning and Construction 20.205 13MPO-MPOJC 175,000 2,539,699 Iowa Department of Transportation: Recreational Trails Program 20.219 NRT-3715(649)--9G-52 389,885 Total Highway Planning and Construction Cluster 2,929,584 Federal Transit Cluster: Pass-through program from: Iowa Department of Transportation: Federal Transit – Capital Investment Grants 20.500 IA-04-0117-371-11 739,797 Direct program:Federal Transit – Formula Grants 20.507 1,043,854 Total Federal Transit Cluster 1,783,651 Transit Services Program Cluster: Pass-through program from: Iowa Department of Transportation: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 IA-16-X002-371-13 88,992 Job Access and Reverse Commute Program 20.516 IA-37-X022-371-12 31,024 Job Access and Reverse Commute Program 20.516 IA-37-X022-371-13 92,942 123,966 New Freedom Program 20.521 IA-57-X001-371-12 24,004 New Freedom Program 20.521 IA-57-X009-371-13 32,148 56,152 Total Transit Services Program Cluster 269,110 Entity Identifying Pass-Through Grantor/Program Number See Notes to the Schedule of Expenditures of Federal Awards 161 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Federal CFDA Federal Number Expenditures U.S. Department of Transportation: (continued) Pass-through program from: (continued)Iowa Department of Public Safety: Governor's Traffic Safety Bureau: Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 PAP 13-410, Task 30 19,463$ Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 PAP 12-410, Task 41 6,338 25,801 Total U.S. Department of Transportation 7,175,792 U.S. Environmental Protection Agency Direct program: Urban Waters Small Grants 66.440 9,709 U.S. Department of Energy: Direct program:ARRA – Energy Efficiency and Conservation Block Grant Program (EECBG)81.128 23,419 U.S. Department of Homeland Security: Pass-through program from: Iowa Homeland Security and Emergency Management Division: Disaster Grants – Public Assistance (Presidentially Declared Disasters)97.036 FEMA-1763 DR-IA 475,304 Disaster Grants – Public Assistance (Presidentially Declared Disasters)97.036 FEMA DR-4119-IA 49,993 Disaster Grants – Public Assistance (Presidentially Declared Disasters)97.036 FEMA DR-4126-IA 49,732 575,029 Hazard Mitigation Grant 97.039 DR-1763-0137-01 275,515 Hazard Mitigation Grant 97.039 HMGP-DR-1854-0006 01 104,046 Hazard Mitigation Grant 97.039 FEMA-DR-1763-0015 01 1,035 380,596 Total U.S. Department of Homeland Security 955,625 Total 50,104,088$ Pass-Through Entity Identifying Grantor/Program Number 162 City of Iowa City, Iowa Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Iowa City, Iowa, and is presented on the modified accrual basis of accounting for governmental funds and the full accrual basis of accounting for proprietary funds. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The City received federal awards both directly from federal agencies and indirectly through pass-through entities. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. Note 2 - Subrecipients Of the federal expenditures presented in the accompanying schedule of expenditures of federal awards, the City provided federal awards to subrecipients as follows: Federal Amount CFDA Provided to Number Subrecipients Community Development Block Grants/Entitlement Grants 14.218 1,102,570$ Home Investment Partnerships Program 14.239 539,903 Public Safety Partnership and Community Policing Grants 16.710 7,738 Edward Byrne Memorial Justice Assistance Grant Program 16.738 70,910 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories 16.803 19,998 New Freedom Program 20.521 56,152 Program Title 163 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2013 Part I: Summary of the Independent Auditor's Results: Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting: Material weaknesses identified Yes Significant deficiencies identified not considered to be material weaknesses None reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weaknesses identified No Significant deficiencies identified not considered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133 §.510(a): No Identification of major programs: Name of Federal Program CFDA Number Economic Adjustment Assistance 11.307 Community Development Block Grants/Entitlement Grants 14.218 JAG Cluster Edward Byrne Memorial Justice Assistance Grant Program 16.738 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories 16.803 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 16.804 Airport Improvement Program 20.106 Highway Planning and Construction Cluster Highway Planning and Construction 20.205 Recreational Trails Program 20.219 Federal Transit Cluster Federal Transit – Capital Investment Grants 20.500 Federal Transit – Formula Grants 20.507 164 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2013 Part I: Summary of the Independent Auditor's Results: (continued) Dollar threshold used to distinguish between type A and type B programs: $1,503,123 Auditee qualified as low-risk auditee? Yes Part II: Findings Related to the Financial Statements: MATERIAL WEAKNESS: 2013-A Material Audit Adjustment Criteria – A properly designed system of internal control over financial reporting allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generally accepted accounting principles. Condition – During the course of our engagement, we proposed a material audit adjustment to the financial statements that would not have been identified as a result of the City’s existing internal controls and, therefore, could have resulted in material misstatements of the City’s financial statements. Cause – The material audit adjustment was to adjust the beginning of the year net position of the Sanitation Fund for the Landfill Closure and Postclosure Care Liability which was calculated incorrectly in the past based on incorrect landfill capacity information supplied to the accounting staff. Effect – The effect of this condition was financial data not in accordance with generally accepted accounting principles. Recommendation –We recommend that additional financial statement review procedures be implemented to insure accuracy of recorded amounts. Response – The information used for the past several years to calculate the Landfill Closure and Postclosure Liability was consistent with the information that is used in the calculation of the funding requirements for the Municipal Solid Waste Sanitary Landfill Financial Assurance Report Form submitted to the Department of Natural Resources of the State of Iowa each year. While these calculations are similar in nature, the City has chosen a very conservative approach that is allowed by the State to show the funding requirement. This alternate approach is not allowed by U.S. GAAP in the calculation of the liability, therefore creating a discrepancy. Accounting will work to implement a more stringent review process of the information obtained from other City divisions and outside entities to make sure the information is in compliant with U.S. GAAP requirements. Part III: Findings and Questioned Costs for Federal Awards: There were no findings and questioned costs to report. 165 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2013 Part IV: Other Findings Related to Required Statutory Reporting: 2013-IA-A Certified Budget – Disbursements during the year ended June 30, 2013, did not exceed the amount budgeted. However, before the budget was amended, disbursements exceeded the amount budgeted for the Community and Economic Development function. Recommendation – The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response – The City is looking to improve its budget monitoring procedures and revise the budget preparation process to help reduce the likelihood of such an occurrence. 2013-IA-B Questionable Expenditures – We noted no expenditures that we believe may fail to meet the requirements of public purpose as defined in an Attorney General’s opinion dated April 25, 1979. 2013-IA-C Travel Expense – No expenditures of City money for travel expenses of spouses of City officials or employees were noted. 2013-IA-D Business Transactions – Business transactions between the City and City officials or employees are detailed as follows: Name, Title, and Transaction Business Connection Description Amount Art Bettis, Spouse of Brenda Nations, Consulting Environmental Coordinator, Landfill Services $ 1,500 Terry Dickens, Council Member Part owner of Herteen & Stocker Jewelers Service Charge 16 In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transactions with the Environmental Coordinator and the Council Member do not appear to represent conflicts of interest since total transactions with each individual did not exceed $1,500 during the fiscal year. 2013-IA-E Bond Coverage – Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to ensure the coverage is adequate for current operations. 2013-IA-F Council Minutes – No transactions were found that we believe should have been approved in the City Council minutes but were not. 2013-IA-G Deposits and Investments – No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of Iowa and the City’s investment policy were noted. 166 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2013 Part IV: Other Findings Related to Required Statutory Reporting: (continued) 2013-IA-H Urban Renewal Annual Report – The urban renewal annual report was properly approved and certified to the Iowa Department of Management on or before December 1. 2013-IA-I Revenue Bonds – No instances of non-compliance with the provisions of the City’s revenue bond resolutions were noted. 167 City of Iowa City, Iowa Summary Schedule of Prior Federal Audit Findings Year Ended June 30, 2013 There were no prior year federal findings.