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FY2012 Annual Financial ReportCity of Iowa City, Iowa Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2012 North Market Square Park COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2012 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2012 Page INTRODUCTORY SECTION Table of contents ........................................................................................................................... 1 Letter of transmittal ....................................................................................................................... 3 City organizational chart................................................................................................................ 12 City officials ................................................................................................................................. 13 Certificate of Achievement for Excellence in Financial Reporting.................................................. 14 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ...................................................................................... 15 MANAGEMENT’S DISCUSSION AND ANALYSIS .................................................................. 17 BASIC FINANCIAL STATEMENTS Government-wide financial statements Statement of net assets ............................................................................................................. 28 Statement of activities .............................................................................................................. 30 Fund financial statements Balance sheet – governmental funds ........................................................................................ 32 Reconciliation of the balance sheet of the governmental funds to the statement of net assets .... 34 Statement of revenues, expenditures, and changes in fund balances – governmental funds........ 35 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities................................................................... 37 Statement of net assets – proprietary funds ............................................................................... 38 Statement of revenues, expenses, and changes in fund net assets – proprietary funds ................ 41 Statement of cash flows – proprietary funds ............................................................................. 42 Statement of fiduciary assets and liabilities .............................................................................. 44 Notes to financial statements ...................................................................................................... 45 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule – budget and actual – all governmental funds and enterprise funds – budgetary basis……………………………………………………………………….... 90 Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 92 Note to required supplementary information – budgetary reporting…………………………….. 93 Note to required supplementary information - schedule of funding progress for health and dental plans…………………….…………………………………………………………….………….. 94 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet – nonmajor governmental funds .......................................................... 96 Combining statement of revenues, expenditures, and changes in fund balances – nonmajor governmental funds ................................................................................................................. 97 Combining statement of net assets – nonmajor enterprise funds .................................................. 100 Combining statement of revenues, expenses, and changes in fund net assets – nonmajor enterprise funds ....................................................................................................................... 101 Combining statement of cash flows – nonmajor enterprise funds ................................................. 102 Combining statement of net assets – internal service funds.......................................................... 104 Combining statement of revenues, expenses, and changes in fund net assets – internal service funds ....................................................................................................................................... 105 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2012 Page COMBINING AND INDIVIDUAL FUND STATEMENTS (continued) Combining statement of cash flows – internal service funds ........................................................ 106 Statement of changes in assets and liabilities – agency funds ...................................................... 108 STATISTICAL SECTION (UNAUDITED) Net assets by component ............................................................................................................... 111 Changes in net assets ..................................................................................................................... 112 Fund balances – governmental funds ............................................................................................. 114 Changes in fund balances – governmental funds ............................................................................ 115 General government tax revenues by source .................................................................................. 116 Assessed and taxable value of property .......................................................................................... 117 Property tax rates – direct and overlapping governments ............................................................... 118 Property tax budgets and collections .............................................................................................. 119 Principal taxpayers ........................................................................................................................ 120 Principal water system customers .................................................................................................. 122 Sales history and total water charges ............................................................................................. 123 Principal sewer system customers .................................................................................................. 124 Sales history and total sewer charges ............................................................................................. 125 Ratios of outstanding debt by type ................................................................................................. 126 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ............ 127 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures ............................................................................................................................... 128 Computation of direct and overlapping debt .................................................................................. 129 Legal debt margin information ...................................................................................................... 130 General obligation debt annual maturity schedule .......................................................................... 131 Schedule of revenue bond coverage ............................................................................................... 132 Revenue debt annual maturity schedule ......................................................................................... 133 Revenue debt annual maturity by funding source ........................................................................... 134 Demographic and economic statistics ............................................................................................ 136 Principal employers ....................................................................................................................... 137 Full-time equivalent city government employees by function......................................................... 138 Operating indicators by function.................................................................................................... 140 Capital assets by function .............................................................................................................. 142 COMPLIANCE SECTION Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards .. 145 Report on compliance with requirements that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A- 133 ............................................................................................................................................. 147 Schedule of expenditures of federal awards ................................................................................... 149 Notes to the schedule of expenditures of federal awards ................................................................ 154 Schedule of findings and questioned costs ..................................................................................... 155 2 December 17, 2012 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, 2012 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, 2012 are free of material misstatement. The audit is conducted in accordance with generally accepted auditing standards and involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement preparation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Iowa City’s financial statements for the fiscal year ended, June 30, 2012, 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 542 full-time and 66 part-time permanent municipal employees and 454 temporary employees, including a police force of 78 sworn personnel and a fire department of 64 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 encumbered 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 30,000 employees. The University of Iowa had a record high enrollment for the fall 2012 semester and continues to add new facilities. 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, the Iowa’s Technology 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 and 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, 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 recent recession as evidence in the unemployment rate for Iowa City, which continues to remain low at 3.9% for the month of June 2012, as compared to 5.1% for the State of Iowa, and 8.2% for the national average. The rate of new housing construction decreased in comparison to the prior year, but the value of the additions increased. This consisted of 80 new single-family houses in 2011, as compared to 108 in 2010; multi-family dwelling units added to the tax rolls for the year ended December 31, 2011 increased to 94, compared to 88 in 2010; and mixed commercial and residential developments added in 2011 included 51 residential units. Altogether these additions totaled $45,326,000 in 2011, an increase of $1,369,000 from prior year. 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. There are many signs that the City remains healthy and vibrant with great promise for the future. The relative stability of the University of Iowa, coupled with a history of steady employment by the City’s multi-sector base of manufacturing and service businesses, have helped insulate the City from any significant negative economic impacts of the recent national recession. The City’s property valuations continue to rise and along with the low unemployment rate, continue to be indicative of the City's relative economic stability. Major Initiatives The City of Iowa City, with the assistance of the University of Iowa’s Institute of Public Affairs, completed the FY12 - FY13 Strategic Plan. The strategic planning process involved multiple steps, 6 including gathering input from the general public, front line City staff, department directors, and the City Council. The FY12 – FY13 Strategic Plan established the prevailing organizational priorities as the following: 1. Economic and Community Development 2. Development of the Downtown and Near Downtown Areas 3. Neighborhood Stabilization 4. A Strong and Sustainable Financial Foundation 5. Coordinated Communication and Customer Service Orientation 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 will be focused on in the coming year include the Towncrest commercial area, Sycamore Mall and First Avenue, Highway 6/Highway 1 intersection, 420 th 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 began work on 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. These initial projects are intended to serve as a catalyst for future investment in this business corridor. The costs for Towncrest Renewal are estimated at $1,200,000 and will be paid with GO bonds. The pending departure of an anchor tenant at Sycamore Mall presents 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 $19,997,000 and will be paid with GO bonds, federal and state grants, and road use tax. The Highway 6/Highway 1 intersection is a viable commercial corridor, in large part because of high traffic counts. Staff will focus efforts in the coming months 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 $33,031,000 and will be paid with GO bonds and federal grants. The City has invested considerable money in infrastructure development and recently achieved a shovel ready status from the State of Iowa for the 420 th Street Industrial Park. This project involves 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 is estimated to cost $13,015,000 and will be 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 7 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. The City is looking into potential grants to fund this project and the remaining cost will be funded with GO bonds. The second priority of the FY12 – FY13 Strategic Plan is the development of the Downtown and Near Downtown Areas. Staff is focusing on three distinct geographic areas: Downtown Iowa City, Northside Marketplace, and Riverfront Crossings. In the fall of 2011, 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. In conjunction with the ICDD, the city will be actively looking for ways to build upon the success of special events that successfully bring visitors to the Downtown. The City recently commissioned two separate market analyses related to Downtown Iowa City, which both highlighted the market potential for the area. Staff, in partnership with stakeholders, will work 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. Two capital projects that directly impact the Downtown region are 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. Other projects that will have a positive impact on downtown include the University of Iowa announcing they will build the Voxman-Clapp Music Building at the corner of Clinton and Burlington Streets, the City actively marketing the city- owned ‘John Wilson Building’ on the eastern edge of Downtown, and the Iowa City Area Development Group’s efforts to establish co-working space in Downtown. The downtown maintenance project and two-way street conversion projects will cost $926,000 and are being paid through GO bonds. The Northside Marketplace area recently benefited from streetscape improvements that advanced the aesthetics and improved pedestrian and bicycle accommodations and the City is redeveloping a park in the area. These projects will costs $1,293,000 and are being funding through state grants, water and wastewater revenues, and bonds. Staff is investigating ways to facilitate new private investment in the area. The Riverfront Crossing Development Plan is an initiative to revitalize the area south of Iowa City’s downtown area. It will be a mix-use zoning district that will allow for commercial and residential development with identified costs estimated at $800,000 and additional expenses anticipated. Council has approved an Urban Renewal Area for a portion of this area and the City is considering expanding another urban renewal area to encompass a greater portion of the Riverfront Crossing area. 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, which relates to a $230,000,000 federal grant that will be used to develop passenger rail services from Chicago to Iowa City, pending matching State funds, constructing 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. The City is hoping to work with a private partner to develop the commercial and housing spaces. And a third project is the decommissioning of the north wastewater plant by expanding 8 the south wastewater plant. This relocation project has costs totaling $54,978,000 and is being funded through federal and state grants, local option taxes, and wastewater revenues. The third priority from the City’s Strategic Plan FY12 – FY13 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 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. Staff has completed or is currently working on 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 is also examining operations where the City is providing subsidized service beyond our borders and developing plans to ensure the City is being equitably reimbursed for such services. In May 2012, Moody’s conducted a review of the City as part of the bond rating process and reaffirmed the City’s Aaa bond rating. The fifth and final priority of the City’s Strategic Plan FY12 – FY13 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. In the summer of 2012, the City launched a redesigned homepage and introduced a City Facebook and Twitter page. These communication improvements have allowed the City to reach broader audiences and better promote activities, community news, and service information. The City has also began implementation of a new software package, including financials, payroll, and utility billing, that will allow for improved internal workflows and communication. The cost of this project is $1,433,000 and is being paid with bonds, water, wastewater, sanitation, and stormwater revenues. 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 9 direction. There are still two uncertainties at this time which have influenced the preparation of the three- year financial plan (FY14 – FY16): 1) the national economy and the potential impact on municipal operations; and 2) proposals by both the governor and state legislature for revisions to property tax. Fortunately, economic conditions have remained stable or improved and the 2012 legislative session closed without passing property tax reform. The City is seeing lower growth in property tax valuations when compared with prior years. Revaluation occurs biennially and the FY14 budget is based on non-reevaluation year (2012) in which total property valuation grown was approximately 1%. In addition to this, a recent judgment by the Iowa Supreme court has generated a number of appeals with county assessors across the state for reclassification on multi-unit structures from commercial to residential. Residential properties are subject to an assessment limitation order in the State of Iowa, which established taxable value at 52.82% of assessed value in FY14, versus the 100% taxable value used for commercial properties. Since the court ruling in 2011, a number of commercial property owners in Iowa City have formed cooperative housing units in order to qualify for reclassification as residential property. This trend is expected to continue in future years. The combined effect of a slower growth in valuations and the loss of taxable value due to cooperative housing conversions has limited growth in property tax revenue. In addition, 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. The consequences of limited revenue growth and increased expenses will require continued review of city operations, service delivery, and alternative revenue sources. 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. 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, 2011. 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-seven consecutive years. I believe our current report continues to conform to the Certificate requirements and I will submit it to GFOA to determine its eligibility for another certificate. 10 11 12 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2012 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 Fire Chief Andrew Rocca July 14, 1978 Parks and Recreation Director Mike Moran September 26, 1983 Director of Finance Kevin O’Malley August 19, 1985 Chief of Police Sam Hargadine August 29, 2005 13 14 Independent Auditor’s Report To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa 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, as of and for the year ended June 30, 2012, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the City of Iowa City, Iowa. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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, 2012, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards , we have also issued our report dated December 12, 2012, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 15 Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as 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 inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements as a whole. 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 Organizations, 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. 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. Dubuque, Iowa December 12, 2012 16 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, 2012. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 – 11 of this report. Financial Highlights • The assets of the City of Iowa City exceeded its liabilities at the close of the fiscal year ending June 30, 2012 by $484,024,000 (net assets). Of this amount, $97,756,000 (unrestricted net assets) may be used to meet the government’s ongoing obligations to its citizens and creditors. • The City’s total net assets increased by $24,181,000 during the fiscal year. Governmental activities increased by $17,949,000 and business-type activities increased by $6,232,000. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $78,044,000, an increase of $8,824,000 in comparison with the prior year. Of this total amount, approximately $13,907,000 or 17.8% 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 $14,273,000 or 29.1% 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 assets presents information on all of the City’s assets and liabilities, with the difference between the two reported as net assets . Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City include Public Safety, Public Works (roads, traffic controls, and transit), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business-type activities of the City include Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water. 17 The government-wide financial statements may be found on pages 28 – 31 of this report. Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements and is typically the basis that is used in developing the next annual budget. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has five major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, Other Shared Revenue and Grants 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 32 – 37 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business- type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds financial statements provide the same type of information as the government-wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other three non-major enterprise funds are grouped together for reporting purposes and listed under a single heading “Other Enterprise Funds”. Detailed information for each of the non-major funds is provided in the combining statements on pages 100 – 102. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 38 – 43 of this report. 18 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 44. 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 45 – 88 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non- major governmental funds, non-major enterprise funds, and internal service funds are presented immediately following the notes. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $484,024,000 at the close of the fiscal year ended June 30, 2012. By far, the largest portion of the City’s net assets reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), less any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa City's Net Assets June 30, 2012 (amounts expressed in thousands) Governmental Business-type activities activities Total 2012 2011 2012 2011 2012 2011 Current and other assets 172,293 $ 161,648 $ 98,069 $ 100,399 $ 270,362 $ 262,047 $ Capital assets 188,491 184,036 265,559 265,165 454,050 449,201 Total Assets 360,784 345,684 363,628 365,564 724,412 711,248 Long-term liabilities outstanding 78,754 82,352 84,323 91,812 163,077 174,164 Current and other liabilities 72,105 71,356 5,206 5,885 77,311 77,241 Total Liabilities 150,859 153,708 89,529 97,697 240,388 251,405 Net assets: Invested in capital assets, net of related debt 135,998 123,935 195,073 186,177 331,071 310,112 Restricted 35,021 31,179 20,176 20,658 55,197 51,837 Unrestricted 38,906 36,862 58,850 61,032 97,756 97,894 Total Net Assets 209,925 $ 191,976 $ 274,099 $ 267,867 $ 484,024 $ 459,843 $ 19 A portion of the City’s net assets, $55,197,000 or 11.4%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets, $97,756,000 or 20.2%, 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, 2012, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. Governmental Activities: Governmental activities increased the City’s net assets by $17,949,000. The increase in net assets 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 FY12’s operation. City of Iowa City's Changes in Net Assets (amounts expressed in thousands) Governmental Business-type activities activities Total 2012 2011 2012 2011 2012 2011 Revenues: Program Revenues: Charges for services 8,155 $ 8,199 $ 36,095 $ 36,334 $ 44,250 $ 44,533 $ Operating grants and contributions 8,682 13,517 6,782 7,448 15,464 20,965 Capital grants and contributions 6,078 6,048 6,218 4,145 12,296 10,193 General Revenues: Property taxes 50,516 48,011 - - 50,516 48,011 Road use tax 6,394 6,068 - - 6,394 6,068 Local option sales tax 8,644 8,911 - - 8,644 8,911 Other taxes 2,491 2,464 - - 2,491 2,464 Earnings on investments 1,823 1,539 813 954 2,636 2,493 Gain on disposal of capital assets 2,950 761 336 314 3,286 1,075 Other 4,228 6,230 484 381 4,712 6,611 Total revenues 99,961 101,748 50,728 49,576 150,689 151,324 Expenses: Public safety 21,186 18,867 - - 21,186 18,867 Public works 17,556 19,145 - - 17,556 19,145 Culture and recreation 13,107 10,811 - - 13,107 10,811 Community and economic development 16,305 16,501 - - 16,305 16,501 General government 7,591 7,356 - - 7,591 7,356 Interest on long-term debt 2,400 2,841 - - 2,400 2,841 Wastewater treatment - - 11,069 10,971 11,069 10,971 Water - - 8,781 8,523 8,781 8,523 Sanitation - - 8,315 7,461 8,315 7,461 Housing authority - - 7,911 7,448 7,911 7,448 Parking - - 4,167 4,135 4,167 4,135 Airport - - 1,127 1,049 1,127 1,049 Stormwater - - 1,304 1,418 1,304 1,418 Cable television - - 689 638 689 638 Total expenses 78,145 75,521 43,363 41,643 121,508 117,164 Change in net assets before transfers and extraordinary items 21,816 26,227 7,365 7,933 29,181 34,160 Transfers (3,867) (4,020) 3,867 4,020 - - Extraordinary items - - (5,000) - (5,000) - Change in net assets 17,949 22,207 6,232 11,953 24,181 34,160 Net assets beginning of year 191,976 169,769 267,867 255,914 459,843 425,683 Net assets end of year 209,925 $ 191,976 $ 274,099 $ 267,867 $ 484,024 $ 459,843 $ 20 The total revenues for governmental activities for FY12 were $99,961,000. Governmental activities are primarily funded through taxes, $68,045,000 or 68.1%, and grants and contributions, $14,760,000 or 14.8%. Grants and contributions decreased from prior year by $4,805,000 as the City’s expenditures for flood mitigation, which were covered by I-Jobs and supplemental Community Development Block Grants, have decreased. Expenses for governmental activities totaled $78,145,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY12, Public Safety accounted for the highest portion of governmental expenses, $21,186,000 or 27.1%, and increased over the prior year due to the addition of a fourth fire station during FY12. Public Works, $17,556,000 or 22.5%, and Community and Economic Development, $16,305,000 or 20.9%, made up another large portion of governmental expenses and each 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 assets by $6,232,000. The increase in net assets was primarily in the Wastewater fund and is due to an increase in capital assets not funded with 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 Sanitation fund incurred a decrease in net assets due to an impairment loss when the Iowa City Landfill experienced a fire in one of its newly constructed cells. For all business-type activities, revenues exceeded expenses by $7,365,000. Revenues for business-type activities totaled $50,728,000. The primary revenue source for business-type activities is charges for services, $36,095,000 or 71.2%. In addition for FY12, the City’s business type- activities had a significant portion of their revenues from grants and contributions used to help fund capital and flood recovery projects for business-type activities, $13,000,000 or 25.6%. This is an increase of $1,407,000 from the prior year due to additional expenses for the Wastewater flood mitigation project that are covered by grants. The total expenses for business-type activities in FY12 were $43,363,000. Wastewater Treatment represented the highest portion of business-type activities, $11,069,000 or 25.5%, with Water, $8,781,000 or 20.3%, Sanitation, $8,315,000 or 19.2%, and Housing Authority, $7,911,000 or 18.2%, 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. 21 Charges for services 8% Grants and Contributions 15% Property taxes 50% Other Taxes 18% Misc. Other 9% Governmental Activities FY2012 Revenue by Source Charges for services 71% Grants and Contributions 26% Misc. Other 3% Business-Type Activities FY2012 Revenue by Source 22 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 FY2012 Expenditures by Program Area (amounts expressed in thousands) Wastewater Treatment Water Sanitation Housing Authority Parking Airport Stormwater Cable TV 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 FY2012 Expenditures by Program Area (amounts expressed in thousands) 23 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, 2012, the City’s governmental funds reported combined ending fund balances of $78,044,000, an increase of $8,824,000 in comparison with the prior year. Of this total amount, $13,907,000 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 $58,632,000 or 75.1% contains external restraints on its use. The assigned fund balance of $5,191,000 or 6.7% has been identified by the City to be used for specific purposes. The nonspendable fund balance is $314,000 or 0.4%, 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, 2012, the unassigned fund balance of the General Fund was $14,273,000 while General Fund’s total fund balance was $43,557,000. 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 29.1% of total General Fund expenditures of $49,016,000, while total fund balance represents 88.9% of that same amount. The fund balance of the City’s General Fund increased by $7,485,000 during the current fiscal year. 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 will be collected through FY13. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($287,000) as compared to a deficit balance of ($1,741,000) in the prior period. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in FY13 to cover the capital expenditures. 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. This fund balance increased by $4,823,000 during the fiscal year due to bond proceeds that will be used to fund upcoming capital improvement projects. Proprietary Funds : The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The ending net assets of the enterprise funds were $264,293,000, an increase in net asset of $5,505,000. 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 24 project funds. Of the enterprise funds’ net assets, $195,073,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $49,044,000, a decrease of $2,909,000 compared to the previous year due to additional funds being classified as restricted by bond ordinance or grant agreements. The Internal Service funds showed net assets totaling $27,913,000 as of June 30, 2012, an increase of $1,798,000 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 $106,986,000 or 50.8% and the expenditure budget by $162,901,000 or 75.0% to a total of $380,225,000. 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, 2012 amounts to $454,050,000, 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, 2012 increased by $4,455,000 for governmental activities compared to the prior year and increased by $394,000 for business- type activities over the prior year. The following table reflects the $454,050,000 investment in capital assets, net of accumulated depreciation. Major capital asset events during the current fiscal year included the following: • Construction continued on the infrastructure and site grading for the 420th Street Industrial Park. At the end of the fiscal year, expenses were moved into construction in progress totaling $310,000 for City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2012 2011 2012 2011 2012 2011 Land 24,964 $ 23,887 $ 25,886 $ 25,824 $ 50,850 $ 49,711 $ Buildings 46,623 44,748 72,068 69,146 118,691 113,894 Improvements other than buildings 4,103 3,584 6,114 6,561 10,217 10,145 Machinery and equipment 17,330 16,647 7,091 8,070 24,421 24,717 Infrastructure 82,642 79,162 138,282 136,031 220,924 215,193 Construction in progress 12,829 16,008 16,118 19,533 28,947 35,541 Total 188,491 $ 184,036 $ 265,559 $ 265,165 $ 454,050 $ 449,201 $ 25 water, $490,000 for stormwater, $1,787,000 for streets, and $1,748,000 for wastewater. Project will be completed in FY2013. • 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 $22,000,000 in federal EDA grants, $13,546,000 in local options sales tax, $5,500,000 in I-JOBS grant monies, $5,000,000 in CDBG Public Infrastructure grants, as well as, $1,890,000 from Wastewater user fees. Expenses totaling $5,717,000 were moved into construction in progress at the end of FY12. This project is scheduled to be complete in FY14. • A new landfill cell was completed. $2,436,000 in FY12 expenses were added to prior years’ expenses for a total of $7,812,000. This cell was significantly damaged by a fire in May 2012 shortly after it opened. An impairment loss of $5,000,000 was recognized in FY12 and the remaining costs are reported as construction in progress as the cell is not operational during reconstruction. • Construction was completed on the Eastside Recycling Center. FY12 expenses of $455,000 were added to prior year expenses for a total of $4,627,000 capitalized this fiscal year. • A variety of street and bridge construction projects in residential and new industrial areas were capitalized for a total of $4,327,000. This includes $2,290,000 for the 420th Street – Highway 6 to Taft project to accommodate the 420th Street Industrial Park and $1,407,000 for the Dodge Street/I- 80 Pedestrian Bridge. An additional $7,025,000 remains in construction in progress including expenditures for Sycamore Street – Highway 6 to the City Limits project for $1,544,000 and $1,787,000 for the 420th Street Industrial Park Additional information on the City’s capital assets can be found in Note 5 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $143,505,000. Of this amount, $75,320,000 comprises debt backed by the full faith and credit of the City. However, $1,495,000 or 2.0% of the general obligation bonds is debt that serves enterprise funds and is abated by their charges for services and $5,595,000 or 7.4% of these bonds is debt that will be paid with Tax Increment Financing revenues. $68,185,000 represents revenue bonds secured solely by specific revenue sources. The City did issue $9,690,000 of General Obligation bonds during FY2012. However, during the current fiscal year the City’s total bonded debt still decreased by $12,035,000. The City continues to have the same excellent bond rating on its General Obligation bonds that it has had for the past several years. This rating is given to those bonds judged to be of the best quality and carrying the smallest degree of investment risks. The City's bond ratings by Moody’s Investors Services, Inc. as of June 30, 2012 were as follows: General obligation bonds Aaa Parking revenue bonds A Wastewater treatment revenue bonds A Water revenue bonds A City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2012 2011 2012 2011 2012 2011 General obligation bonds 73,825 $ 77,429 $ 1,495 $ 3,146 $ 75,320 $ 80,575 $ Revenue bonds - - 68,185 74,965 68,185 74,965 Total 73,825 $ 77,429 $ 69,680 $ 78,111 $ 143,505 $ 155,540 $ 26 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 $226,982,000. With outstanding General Obligation Debt applicable to this limit of $75,320,000 we are utilizing 33.2% 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 will continue for four years. In FY12, the City collected $8,644,000 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. This local option sales tax will end on June 30, 2013. 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 FY12, the City collected $822,000 in local franchise fee. The City expects continued constraints by the State’s property tax formula and there is a potential for commercial property tax reform during the next legislative session. The rollback on residential properties negatively affects the City’s general operating funds and without the potential for new revenue sources, like those mentioned above, the City’s opportunities for new initiatives are limited. The Council has established a balanced budget in the General Fund for FY13 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of taxable valuation for FY13 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 E. Washington Street, Iowa City, IA, 52240. General Levy $ 8.100 Debt Service Levy 4.443 Employee Benefits Levy 3.193 Transit Levy 0.950 Liability Insurance Levy 0.313 Library Levy 0.270 Total City Levy $ 17.269 27 Governmental Business-type Activities Activities Total Assets Equity in pooled cash and investments 60,441 $ 41,832 $ 102,273 $ Receivables: Property tax 50,754 - 50,754 Accounts and unbilled usage 430 3,161 3,591 Interest 179 488 667 Notes 16,524 963 17,487 Internal balances (11,938) 11,938 - Due from other governments 8,055 2,634 10,689 Inventories 734 414 1,148 Assets held for resale 1,100 - 1,100 Restricted assets: Equity in pooled cash and investments 45,986 36,631 82,617 Other post employment benefits asset 28 8 36 Capital assets: Land and construction in progress 37,792 42,004 79,796 Other capital assets (net of accumulated depreciation) 150,699 223,555 374,254 Total assets 360,784 363,628 724,412 Liabilities Accounts payable 2,593 408 3,001 Contracts payable 1,330 1,838 3,168 Accrued liabilities 2,665 184 2,849 Interest payable 208 1,405 1,613 Deposits 956 767 1,723 Due to other governments 2,991 324 3,315 Notes payable 805 - 805 Unearned revenue 60,557 280 60,837 Noncurrent liabilities: Due within one year: Employee vested benefits 1,226 317 1,543 Bonds payable 11,337 6,584 17,921 Due in more than one year: Employee vested benefits 1,005 243 1,248 Other post employment benefits obligation 2,086 636 2,722 Notes payable 211 - 211 Bonds payable 62,889 63,959 126,848 Landfill closure/post-closure liability - 12,584 12,584 Total liabilities 150,859 89,529 240,388 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS June 30, 2012 28 Governmental Business-type Activities Activities Total Net Assets Invested in capital assets, net of related debt 135,998 $ 195,073 $ 331,071 $ Restricted for or by: Employee benefits 2,057 - 2,057 Capital projects 20,565 - 20,565 Debt service 11,009 - 11,009 Other purposes 1,390 - 1,390 Bond ordinance - 15,829 15,829 State statute - 1,092 1,092 Future improvements - 100 100 Grant agreement - 3,155 3,155 Unrestricted 38,906 58,850 97,756 Total net assets 209,925 $ 274,099 $ 484,024 $ The notes to the financial statements are an integral part of this statement. June 30, 2012 (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) 29 Operating Capital Charges Grants and Grants and Functions/Programs: Expenses for Services Contributions Contributions Governmental activities: Public safety 21,186 $ 3,401 $ 379 $ 200 $ Public works 17,556 1,112 1,943 2,975 Culture and recreation 13,107 825 - 904 Community and economic development 16,305 - 6,360 1,999 General government 7,591 2,817 - - Interest on long-term debt 2,400 - - - Total governmental activities 78,145 8,155 8,682 6,078 Business-type activities: Wastewater treatment 11,069 12,670 - 3,223 Water 8,781 8,419 - 977 Sanitation 8,315 8,115 - 2 Housing authority 7,911 207 6,782 - Parking 4,167 4,743 - 4 Airport 1,127 306 - 1,576 Stormwater 1,304 811 - 436 Cable television 689 824 - - Total business-type activities 43,363 36,095 6,782 6,218 Total 121,508 $ 44,250 $ 15,464 $ 12,296 $ 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 Extraordinary items Total general revenues, transfers, and extraordinary items Changes in net assets Net assets beginning of year Net assets end of year The notes to the financial statements are an integral part of this statement. Program Revenues CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2012 (amounts expressed in thousands) 30 Governmental Business-type Activities Activities Total (17,206) $ - $ (17,206) $ (11,526) - (11,526) (11,378) - (11,378) (7,946) - (7,946) (4,774) - (4,774) (2,400) - (2,400) (55,230) - (55,230) - 4,824 4,824 - 615 615 - (198) (198) - (922) (922) - 580 580 - 755 755 - (57) (57) - 135 135 - 5,732 5,732 (55,230) 5,732 (49,498) 50,516 - 50,516 6,394 - 6,394 811 - 811 858 - 858 8,644 - 8,644 822 - 822 1,823 813 2,636 2,950 336 3,286 4,228 484 4,712 (3,867) 3,867 - - (5,000) (5,000) 73,179 500 73,679 17,949 6,232 24,181 191,976 267,867 459,843 209,925 $ 274,099 $ 484,024 $ Net (Expense) Revenue and Changes in Net Assets 31 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Assets Equity in pooled cash and investments 21,863 $ 1,773 $ 382 $ 15 $ 10,147 $ 2,680 $ 36,860 $ Receivables: Property tax 28,125 9,325 - - 13,024 280 50,754 Accounts and unbilled usage 225 - - 197 - 8 430 Interest 109 - 1 - 19 2 131 Notes 360 - 13,720 899 1,545 - 16,524 Advances to other funds 341 - 18 - 186 - 545 Due from other governments 3,938 257 10 1,796 - 1,961 7,962 Inventories 244 - - - - - 244 Assets held for resale 170 - - 765 - 165 1,100 Restricted assets: Equity in pooled cash and investments 24,221 - - 30 - 21,735 45,986 Total assets 79,596 $ 11,355 $ 14,131 $ 3,702 $ 24,921 $ 26,831 $ 160,536 $ (continued) (amounts expressed in thousands) Special Revenue CITY OF IOWA CITY, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2012 32 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Liabilities and Fund Balances Liabilities: Accounts payable 1,323 $ 40 $ -$ 80 $ -$ 180 $ 1,623 $ Contracts payable - - - - - 1,330 1,330 Accrued liabilities 657 1 6 41 - 22 727 Advances from other funds 2,150 - - 186 - 341 2,677 Due to other governments 19 - - 25 - 2,947 2,991 Interest payable - - - 25 - - 25 Notes payable 170 - - 635 - - 805 Deferred revenue 30,770 9,514 13,738 2,106 13,912 1,318 71,358 Liabilities payable from restricted assets: Deposits 950 - - 5 - 1 956 Total liabilities 36,039 9,555 13,744 3,103 13,912 6,139 82,492 Fund balances: Nonspendable 314 - - - - - 314 Restricted 23,779 1,800 387 599 11,009 21,058 58,632 Assigned 5,191 - - - - - 5,191 Unassigned 14,273 - - - - (366) 13,907 Total fund balances 43,557 1,800 387 599 11,009 20,692 78,044 Total liabilities and fund balances 79,596 $ 11,355 $ 14,131 $ 3,702 $ 24,921 $ 26,831 $ 160,536 $ The notes to the financial statements are an integral part of this statement. Special Revenue BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2012 (amounts expressed in thousands) CITY OF IOWA CITY, IOWA 33 Total governmental fund balances 78,044 $ Amounts reported for governmental activities in the statement of net assets are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 27,913 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 10,801 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 181,741 Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. (2,118) Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds. (2,030) Bonds payable are not due and payable in the current period and therefore are not reported in the funds. (74,226) Notes payable are not due and payable in the current period and therefore are not reported in the funds. (211) Accrued interest on bonds (183) Internal balance due to integration of internal service funds (9,806) Total net assets of governmental activities 209,925 $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) CITY OF IOWA CITY RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2012 34 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Revenues Taxes 37,388 $ 9,961 $ - $ - $ 13,254 $ 1,046 $ 61,649 $ Licenses and permits 1,307 - - - - - 1,307 Intergovernmental 4,450 - 788 12,869 - 3,845 21,952 Charges for services 2,396 197 - 21 - - 2,614 Use of money and property 1,484 - 29 84 153 18 1,768 Miscellaneous 4,422 2 907 191 - 228 5,750 Total revenues 51,447 10,160 1,724 13,165 13,407 5,137 95,040 Expenditures Current: Public safety 19,249 533 - - - 309 20,091 Public works 7,385 - - 4,997 - 3,080 15,462 Culture and recreation 12,153 - - - - 922 13,075 Community and economic development 1,328 - 3,222 1,970 - 1,517 8,037 General government 7,026 357 - - - 170 7,553 Debt service: Principal - - - - 13,294 - 13,294 Interest - - - - 2,543 - 2,543 Capital outlay 1,875 - 2 8,063 - 6,066 16,006 Total expenditures 49,016 890 3,224 15,030 15,837 12,064 96,061 Excess (deficiency) of revenues over (under) expenditures 2,431 9,270 (1,500) (1,865) (2,430) (6,927) (1,021) Other Financing Sources (Uses) Issuance of debt - - - - - 9,690 9,690 Sale of capital assets 1,183 - - 2,436 - - 3,619 Insurance Recoveries - - - - - 53 53 Premium on issuance of bonds - - - - - 165 165 Transfers in 9,818 - - 577 288 8,816 19,499 Transfers out (5,947) (10,002) (38) (1,030) - (6,164) (23,181) Total other financing sources and (uses) 5,054 (10,002) (38) 1,983 288 12,560 9,845 Net change in fund balances 7,485 (732) (1,538) 118 (2,142) 5,633 8,824 Fund Balances, Beginning 36,072 2,532 1,925 481 13,151 15,059 69,220 Fund Balances, Ending 43,557 $ 1,800 $ 387 $ 599 $ 11,009 $ 20,692 $ 78,044 $ The notes to the financial statements are an integral part of this statement. Special Revenue CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2012 (amounts expressed in thousands) 35 36 Net change in fund balances - total governmental funds 8,824 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets 10,827 $ Transfers of capital assets (to)\from enterprise funds - net (214) Transfers of capital assets (to)\from internal service funds - net 4 Capital assets contributed 1,154 Depreciation expense (6,438) 5,333 Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets. Debt issued (9,690) Discount / (premium) on bonds issued (165) Repayments of debt 13,294 Amortization of premium 79 3,518 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. 219 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 (59) Change in accrued post employment benefit obligations (346) Change in accrued interest on debt 64 In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital asset sold. (669) Prepaid items in the governmental funds have been recorded as expenditures when paid. However, the statement of activities will report these items as expenses in the period that the corresponding net asset is exhausted. (6) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 1,071 Change in net assets of governmental activities 17,949 $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) For the Year Ended June 30, 2012 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 3737 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Assets Current assets: Equity in pooled cash and investments 5,219 $ 14,551 $ 8,284 $ 7,271 $ 3,639 $ 2,868 $ 41,832 $ 23,581 $ Receivables: Accounts and unbilled usage 8 1,408 976 484 2 283 3,161 - Interest 18 341 30 44 49 6 488 48 Notes - - - - 963 - 963 - Advances to other funds - - - 3,796 - - 3,796 - Due from other governments - 717 1,289 8 35 585 2,634 93 Inventories - - 414 - - - 414 490 Total current assets 5,245 17,017 10,993 11,603 4,688 3,742 53,288 24,212 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 1,528 11,905 4,260 15,561 3,155 222 36,631 - Other post employment benefits asset - - - - - 8 8 28 Capital assets: Land 6,798 759 6,296 1,912 690 9,431 25,886 45 Buildings 26,392 59,701 24,019 5,535 5,350 4,915 125,912 821 Improvements other than buildings 328 7,371 2,351 144 9 357 10,560 50 Machinery and equipment 745 9,766 10,458 415 116 650 22,150 15,731 Infrastructure - 91,044 52,511 11,298 - 49,829 204,682 1,577 Accumulated depreciation (15,583) (70,676) (25,618) (10,252) (3,850) (13,770) (139,749) (11,564) Construction in progress 1,020 7,706 998 2,904 - 3,490 16,118 90 Total noncurrent assets 21,228 117,576 75,275 27,517 5,470 55,132 302,198 6,778 Total assets 26,473 134,593 86,268 39,120 10,158 58,874 355,486 30,990 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2012 Business-type Activities - Enterprise Funds 38 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities: Accounts payable 37 $ 49 $ 133 $ 37 $ 21 $ 131 $ 408 $ 970 $ Contracts payable 304 502 281 274 - 477 1,838 - Accrued liabilities 30 38 44 42 16 14 184 1,938 Employee vested benefits 50 57 77 85 28 20 317 63 Due to other governments - - 18 289 17 - 324 - Deferred revenue 280 - - - - - 280 - Interest payable 166 812 427 - - - 1,405 - Bonded debt payable (net of unamortized premium and discounts) 517 4,924 1,143 - - - 6,584 - Total current liabilities 1,384 6,382 2,123 727 82 642 11,340 2,971 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 1 - 413 16 329 8 767 - Advances from other funds 507 - - - 18 1,139 1,664 - Employee vested benefits 37 40 62 67 21 16 243 50 Bonded debt payable (net of unamortized premium and discounts) 7,705 36,004 20,250 - - - 63,959 - Other post employment benefits obligation 117 135 146 181 45 12 636 56 Landfill closure/postclosure liability - - - 12,584 - - 12,584 - Total noncurrent liabilities 8,367 36,179 20,871 12,848 413 1,175 79,853 106 Total liabilities 9,751 42,561 22,994 13,575 495 1,817 91,193 3,077 Net Assets Invested in capital assets, net of related debt 11,478 64,743 49,679 11,956 2,315 54,902 195,073 6,750 Restricted by bond ordinance 1,361 11,093 3,375 - - - 15,829 - Restricted by state statute - - - 1,092 - - 1,092 - Restricted for future improvements - - - - - 100 100 - Restricted by grant agreement - - - - 3,155 - 3,155 - Unrestricted 3,883 16,196 10,220 12,497 4,193 2,055 49,044 21,163 Total net assets 16,722 $ 92,032 $ 63,274 $ 25,545 $ 9,663 $ 57,057 $ 264,293 27,913 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 9,806 Net assets of business-type activities 274,099 $ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) PROPRIETARY FUNDS June 30, 2012 (amounts expressed in thousands) 39 40 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Operating Revenues: Charges for services 4,743 $ 12,670 $ 8,419 $ 8,115 $ 207 $ 1,941 $ 36,095 $ 17,373 $ Miscellaneous 162 145 26 48 99 4 484 196 Total operating revenues 4,905 12,815 8,445 8,163 306 1,945 36,579 17,569 Operating Expenses: Personal services 1,733 1,993 2,554 2,673 970 729 10,652 2,228 Commodities 107 954 967 288 28 191 2,535 3,255 Services and charges 1,194 2,716 2,132 5,115 6,804 720 18,681 9,207 3,034 5,663 5,653 8,076 7,802 1,640 31,868 14,690 Depreciation 815 3,952 2,275 415 128 1,500 9,085 1,386 Total operating expenses 3,849 9,615 7,928 8,491 7,930 3,140 40,953 16,076 Operating income (loss) 1,056 3,200 517 (328) (7,624) (1,195) (4,374) 1,493 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets (10) (12) (10) - 17 351 336 200 Operating grants (repayment) - - - (222) 6,782 - 6,560 - Interest income 40 360 204 165 37 7 813 55 Interest expense (366) (1,564) (964) - - - (2,894) - Total nonoperating revenues (expenses) (336) (1,216) (770) (57) 6,836 358 4,815 255 Income (loss) before capital contributions, transfers and extraordinary items 720 1,984 (253) (385) (788) (837) 441 1,748 Capital contributions 4 3,223 1,057 2 - 2,146 6,432 - Transfers in - 2,454 478 - 38 1,341 4,311 51 Transfers out (16) (359) (110) (12) (43) (139) (679) (1) Income (loss) before extraordinary items 708 7,302 1,172 (395) (793) 2,511 10,505 1,798 Extraordinary items: Impairment loss - - - (5,000) - - (5,000) - Change in net assets 708 7,302 1,172 (5,395) (793) 2,511 5,505 1,798 Net Assets, Beginning 16,014 84,730 62,102 30,940 10,456 54,546 26,115 Net Assets, Ending 16,722 $ 92,032 $ 63,274 $ 25,545 $ 9,663 $ 57,057 $ 27,913 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 727 Change in net assets of business-type activities 6,232 $ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2012 (amounts expressed in thousands) 41 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Cash Flows From Operating Activities Receipts from customers and users 4,920 $ 12,719 $ 8,149 $ 8,257 $ 337 $ 1,916 $ 36,298 $ 17,573 $ Payments to suppliers (1,350) (3,685) (3,117) (4,340) (6,826) (916) (20,234) (11,959) Payments to employees (1,777) (2,006) (2,600) (2,696) (979) (767) (10,825) (1,809) Net cash flows from operating activities 1,793 7,028 2,432 1,221 (7,468) 233 5,239 3,805 Cash Flows From Noncapital Financing Activities Grants received - - 3 (215) 6,765 - 6,553 - Transfers from other funds - 2,454 478 - 38 1,341 4,311 51 Transfers to other funds (16) (359) (110) (12) (43) (139) (679) (1) Repayment/(payment) of notes receivable - - - - (80) - (80) - Repayment of advances from other funds (288) - - - - (324) (612) - Repayment of advances to other funds - - - 529 - - 529 - Net cash flows from noncapital financing activities (304) 2,095 371 302 6,680 878 10,022 50 Cash Flows From Capital and Related Financing Activities Capital grants received 273 3,484 149 - - 1,296 5,202 - Acquisition and construction of property and equipment (1,628) (5,005) (992) (3,496) - (2,338) (13,459) (1,209) Proceeds from sale of property - - 1 6 285 373 665 232 Proceeds from issuance of refunding debt (principal plus premium less discount) - - 4,990 - - - 4,990 - Principal paid on bonded debt (500) (4,615) (8,266) - - - (13,381) - Interest paid on bonded debt (375) (1,692) (981) - - - (3,048) - Net cash flows from capital and related financing activities (2,230) (7,828) (5,099) (3,490) 285 (669) (19,031) (977) Cash Flows From Investing Activities Interest on investments 39 277 568 171 28 6 1,089 46 Net increase (decrease) in cash and cash equivalents (702) 1,572 (1,728) (1,796) (475) 448 (2,681) 2,924 Cash and Cash Equivalents, Beginning 7,449 24,884 14,272 24,628 7,269 2,642 81,144 20,657 Cash and Cash Equivalents, Ending 6,747 $ 26,456 $ 12,544 $ 22,832 $ 6,794 $ 3,090 $ 78,463 $ 23,581 $ (continued) (amounts expressed in thousands) Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2012 42 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) 1,056 $ 3,200 $ 517 $ (328) $ (7,624) $ (1,195) $ (4,374) $ 1,493 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 815 3,952 2,275 415 128 1,500 9,085 1,386 Changes in: Receivables: Accounts and unbilled usage 15 (97) (184) 93 15 (28) (186) - Due from other governments - 1 (115) (1) 2 - (113) 4 Inventories - - (20) - - - (20) 27 Accounts payable (49) (15) 5 11 6 (5) (47) 476 Accrued liabilities (47) (50) (75) (76) (23) (21) (292) 413 Employee vested benefits 3 10 - 17 6 5 41 (1) Due to other governments - - (3) 223 - - 220 - Deposits - - 3 2 14 (1) 18 - Other post employment benefits asset/obligation - 27 29 36 8 (22) 78 7 Landfill closure/postclosure liability - - - 829 - - 829 - Total adjustments 737 3,828 1,915 1,549 156 1,428 9,613 2,312 Net cash flows from operating activities 1,793 $ 7,028 $ 2,432 $ 1,221 $ (7,468) $ 233 $ 5,239 $ 3,805 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 480 $ 777 $ - $ - $ 570 $ 1,827 $ - $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) Business-type Activities - Enterprise Funds CITY OF IOWA CITY, IOWA STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS For the Year Ended June 30, 2012 43 Agency Funds Assets Equity in pooled cash and investments 204 $ Accounts receivable 9 Interest receivable 1 Total assets 214 $ Liabilities Accrued liabilities 9$ Due to agency 205 Total liabilities 214 $ The notes to the financial statements are an integral part of this statement. June 30, 2012 (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2012 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, a mass transportation system, public safety, streets, parks, and cultural facilities. It also operates an airport, parking facilities, water treatment, wastewater treatment, stormwater collection, sanitation collection and disposal (including landfill operations), cable television, and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. There were no component units required to be included. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government. Governmental activities , which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities , which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues . As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned or administered by the City or for which the City acts as custodian. The City maintains its records on a modified cash basis of accounting under which only cash receipts, cash disbursements and encumbrances, investments, and bonded debt are recorded. These modified cash basis accounting records have been adjusted to the accrual or modified accrual basis, as necessary, to prepare the accompanying financial statements in accordance with GAAP. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, net assets, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its “measurement focus.” The government-wide financial statements and proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. The Community Development Block Grant Fund accounts for revenue from the U.S. Department of Housing and Urban Development’s Community Development Block Grant programs. The Other Shared Revenue and Grants Fund accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Debt Service Fund accounts for the accumulation of resources for the payment of general long-term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Parking Fund is used to account for the operation and maintenance of the “on” and “off” street public parking facilities. The Wastewater Treatment Fund is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Housing Authority Fund is used to account for the operations and activities of the City’s low and moderate income housing assistance and public housing programs. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund , and the Information Technology Fund. The City also reports fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial 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 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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. 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. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the General Fund, Water Fund, and the Equipment Maintenance Fund. Inventories included in the governmental funds are valued at cost using the first-in, first out (FIFO) method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. 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 capitalizing an asset with an initial, individual cost of less than $50,000 for infrastructure assets and $5,000 for remaining assets. Such assets are recorded at original purchase cost or at fair value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 – 100 years Buildings and structures 20 – 50 years Improvements other than buildings 10 – 50 years Vehicles 2 – 20 years Other equipment 5 – 30 years Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government-wide statements, they are amortized over the life of the bonds. Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee’s then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions The provision for pension cost is recorded on the accrual basis (based on statutorily determined contribution rates), and the City’s policy is to fund pension costs as they accrue. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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 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. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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 $106,986,000 in revenues and other financing sources and by $162,901,000 in expenditures and other financing uses. Appropriations, as adopted or amended and not encumbered, lapse at the end of the fiscal year. As allowed by GASB Statement No. 41, Budgetary Comparison Schedules – Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund’s purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. 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). 2. Compliance and Accountability At June 30, 2012 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $287,000. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2013 to cover the capital expenditures. At June 30, 2012 the Economic Development Fund reported a deficit fund balance of $79,000. The deficit is due to an Economic Development grant paid to a developer to rehabilitate a business in the downtown district. The City anticipates having sufficient debt service funds in 2013 to cover this expenditure. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 3. Cash and Pooled Investments The City’s deposits in banks at June 30, 2012 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 $55,894,121 pursuant to Rule 2a-7 under the Investment Company Act of 1940. Interest rate risk. The City’s investment policy limits the investment of general and operating funds to one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the average maturity of each fund’s portfolio shall not exceed 397 days. Funds not identified as operating funds may be invested in instruments whose maturities do not exceed five years at the time of purchase. Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody’s Investors service as it is a state security that is backed by the full faith and credit of the issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. The aforementioned Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2012, consisted of the following: Interfund balances at June 30, 2012, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans, land and negative cash balance funding. $1,101,929 of the $1,138,898 advances to the Nonmajor Enterprise Funds and $328,687 of the $507,443 advance to the Parking Fund are not expected to be repaid within the next year. $1,987,142 of the $2,150,027 advances to the General Fund and $174,769 of the $186,234 advance to the Other Shared Revenue and Grants Fund are not expected to be repaid within the next year. The $341,084 advance to the Nonmajor Governmental Funds is 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: General - $ - $ - $ 2,150,027 $ 2,150,027 $ Other Shared Revenue and Grants - - 186,234 - 186,234 Nonmajor Governmental 341,084 - - - 341,084 Parking - - - 507,443 507,443 Housing Authority - 18,000 - - 18,000 Nonmajor Enterprise - - - 1,138,898 1,138,898 Total 341,084 $ 18,000 $ 186,234 $ 3,796,368 $ 4,341,686 $ Advances from 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Interfund transfers for the year ended June 30, 2012, 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 $23,861,000 are less than total transfers of $24,079,216 because of the treatment of transfers of capital assets to and from the governmental activities capital assets. During the year, a capital asset related to public safety with a value of $4,100 was transferred to governmental activities capital assets from Equipment. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Equipment did report a disposal for the capital resources given. Also during the year, construction in progress related to construction along 420 th Street and Northside Marketplace Streetscape with a total value of $214,083 were transferred from governmental activities capital asset to Water and Stormwater, $79,934 and $134,149 respectively. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Water and Stormwater did report capital contributions for the capital resources received. Other Community Shared Employee Development Revenue and Nonmajor General Benefits Block Grant Grants Governmental Parking Transfer to: General - $ 9,585,622 $ - $ 69,996 $ 6,195 $ - $ Debt service 134,436 - - 153,672 - - Other shared revenue and grants 78,862 416,369 - - 82,378 - Nonmajor governmental 5,110,939 - - 460,561 2,722,273 15,640 Wastewater treatment 479,402 - - 191,722 1,783,005 - Water - - - 154,080 323,748 - Housing Authority - - 37,747 - - - Nonmajor enterprise 100,000 - - - 1,241,421 - Internal Service 43,767 - - 432 5,616 - Total Transfer to 5,947,406 $ 10,001,991 $ 37,747 $ 1,030,463 $ 6,164,636 $ 15,640 $ Transfer from 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Wastewater Housing Nonmajor Internal Total Treatment Water Sanitation Authority Enterprise Service Transfer from 23,034 $ 23,034 $ - $ 43,000 $ 66,517 $ - $ 9,817,398 $ - - - - - - 288,108 - - - - - - 577,609 336,253 86,728 11,628 - 72,236 - 8,816,258 - - - - - - 2,454,129 - - - - - - 477,828 - - - - - - 37,747 - - - - - - 1,341,421 - - 144 - - 576 50,535 359,287 $ 109,762 $ 11,772 $ 43,000 $ 138,753 $ 576 $ 23,861,033 Transfers to governmental activities capital assets from internal service funds 4,100 Transfers from governmental activities capital assets to enterprise funds 214,083 24,079,216 $ Transfer from 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 5. Capital Assets Capital asset activity for the year ended June 30, 2012, was as follows: Beginning July 1, 2011 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2012 Governmental activities: Capital assets, not being depreciated: Land 23,887,472 $ 1,709,538 $ 633,398 $ 24,963,612 $ Construction in progress 16,007,754 142,742 3,321,276 12,829,220 Total capital assets, not being depreciated 39,895,226 1,852,280 3,954,674 37,792,832 Capital assets, being depreciated: Buildings 63,695,152 3,595,319 61,829 67,228,642 Improvements other than buildings 5,592,658 764,613 11,224 6,346,047 Machinery and equipment 44,820,729 4,303,091 1,975,587 47,148,233 Infrastructure 106,783,345 5,891,651 - 112,674,996 Total capital assets being depreciated 220,891,884 14,554,674 2,048,640 233,397,918 Less accumulated depreciation for: Buildings 18,947,980 1,711,284 53,173 20,606,091 Improvements other than buildings 2,009,426 244,615 11,224 2,242,817 Machinery and equipment 28,173,526 3,455,998 1,811,030 29,818,494 Infrastructure 27,621,238 2,412,251 - 30,033,489 Total accumulated depreciation 76,752,170 7,824,148 1,875,427 82,700,891 Total capital assets, being depreciated, net 144,139,714 6,730,526 173,213 150,697,027 Governmental activities capital assets, net 184,034,940 $ 8,582,806 $ 4,127,887 $ 188,489,859 $ 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Beginning July 1, 2011 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2012 Business-type activities: Capital assets, not being depreciated: Land 25,823,805 $ 132,350 $ 70,495 $ 25,885,660 $ Construction in progress 19,533,140 4,527,724 7,943,007 16,117,857 Total capital assets, not being depreciated 45,356,945 4,660,074 8,013,502 42,003,517 Capital assets, being depreciated: Buildings 119,706,766 6,456,477 250,148 125,913,095 Improvements other than buildings 10,559,851 - - 10,559,851 Machinery and equipment 22,306,934 - 155,575 22,151,359 Infrastructure 198,063,655 6,636,184 17,833 204,682,006 Total capital assets being depreciated 350,637,206 13,092,661 423,556 363,306,311 Less accumulated depreciation for: Buildings 50,561,515 3,307,857 25,015 53,844,357 Improvements other than buildings 3,998,975 447,008 - 4,445,983 Machinery and equipment 14,236,770 956,986 133,850 15,059,906 Infrastructure 62,032,992 4,373,932 6,776 66,400,148 Total accumulated depreciation 130,830,252 9,085,783 165,641 139,750,394 Total capital assets, being depreciated, net 219,806,954 4,006,878 257,915 223,555,917 Business-type activities capital assets, net 265,163,899 $ 8,666,952 $ 8,271,417 $ 265,559,434 $ Depreciation expense was charged to functions as follows: Governmental activities: Public safety 911,141 $ Public works 3,183,854 Culture and recreation 2,044,011 Community and economic development 39,578 General government 259,477 Internal service funds 1,386,087 Total depreciation expense - governmental activities 7,824,148 $ Business-type activities: Parking 815,494 $ Wastewater treatment 3,951,913 Water 2,274,681 Sanitation 414,837 Housing authority 128,284 Nonmajor enterprise 1,500,574 Total depreciation expense - business-type activities 9,085,783 $ 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 As a result of a fire to the City’s most recent landfill cell, there was an impairment loss of $4,999,646 recorded for fiscal year 2012. This amount was derived from a survey conducted by an engineering and technical consultant, Howard R Green Inc., that reported 64% of this cell had been destroyed. 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2012, was as follows: General Obligation Bonds Various issues of general obligation bonds totaling $75,320,000 are outstanding as of June 30, 2012. The bonds have interest rates ranging from 0.5% to 5.6% and mature in varying annual amounts ranging from $100,000 to $1,955,000 per issue, with the final maturities due in the year ending June 30, 2023. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise funds is used to pay the general long- term debt principal and interest. The liability for those bonds that are expected to be paid by enterprise funds is included in those funds. Due Within July 1, 2011 Issues Retirements June 30, 2012 One Year Governmental activities: General obligation bonds $ 77,428,782 $ 9,690,000 $ 13,293,782 $ 73,825,000 $ 11,255,000 Plus: Unamortized Premium 315,175 165,454 79,975 400,654 81,711 $ 77,743,957 $ 9,855,454 $ 13,373,757 $ 74,225,654 $ 11,336,711 Business-type activities: General obligation bonds $ 3,146,218 -$ $ 1,651,218 $ 1,495,000 $ 305,000 Less: Unamortized Discounts 15,369 - 3,842 11,527 3,842 Total general obligation bonds 3,130,849 - 1,647,376 1,483,473 301,158 Revenue bonds 74,965,000 4,950,000 11,730,000 68,185,000 6,225,000 Plus: Unamortized Premium 892,306 39,909 57,908 874,307 57,908 Total revenue bonds 75,857,306 4,989,909 11,787,908 69,059,307 6,282,908 $ 78,988,155 $ 4,989,909 $ 13,435,284 $ 70,542,780 $ 6,584,066 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Annual debt service requirements to maturity for general obligation bonds are as follows: Revenue Bonds As of June 30, 2012, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 9,110,000 $ 48,020,000 $ 21,815,000 Interest rates 3.0% to 5.0% 3.0% to 5.0% 1.5% to 4.5% Annual maturities $ 515,000 to $ 435,000 to $ 370,000 to $ 770,000 $ 2,750,000 $ 835,000 Amount outstanding $ 8,190,000 $ 40,070,000 $ 19,925,000 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending June 30 Principal Interest Principal Interest 2013 11,255,000 $ 2,300,666 $ 305,000 $ 55,458 $ 2014 10,680,000 1,996,145 300,000 44,325 2015 10,560,000 1,672,940 300,000 33,225 2016 10,025,000 1,342,745 295,000 22,125 2017 8,450,000 1,024,915 295,000 11,062 2018-2022 22,195,000 1,924,956 - - 2023-2027 660,000 35,640 - - Total 73,825,000 $ 10,298,007 $ 1,495,000 $ 166,195 $ Governmental Activities Business-type Activities Fiscal Year Ending Business-type Activities June 30 Principal Interest 2013 6,225,000 $ 2,628,391 $ 2014 5,115,000 2,376,928 2015 5,290,000 2,206,665 2016 5,500,000 2,015,284 2017 5,670,000 1,807,671 2018-2022 29,395,000 5,509,628 2023-2027 10,990,000 879,248 68,185,000 $ 17,423,815 $ 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 The revenue bond ordinances required that wastewater treatment, parking system, and water revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account Amount (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Parking Revenue and Water Revenue bonds – maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds – 125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds 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 June 20, 2012, the City issued $4,950,000 of water revenue bonds for a current refunding of $5,015,000 of water revenue bonds on July 1, 2012. As a result, the water revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $830,184 in future debt service payments and an economic gain of $688,741. 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2012, are comprised of the following issues: Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2012 General Obligation Bonds: Taxable-Urban Renewal Mar. 2004 7,305,000 $ 4.0 - 5.4 6/23 5,595,000 $ Multi-Purpose Mar. 2005 7,020,000 3.0 - 4.0 6/15 2,375,000 Multi-Purpose Jun. 2006 6,265,000 3.625 - 4.0 6/16 2,855,000 Multi-Purpose Jun. 2006 1,000,000 5.5 - 5.6 6/16 475,000 Refunded Water Construction (1) Sep. 2006 3,350,000 3.6 - 3.75 6/17 1,495,000 Multi-Purpose May 2007 8,870,000 3.75 6/17 4,845,000 Multi-Purpose June 2008 9,150,000 3.25 - 3.75 6/18 5,850,000 Refunded Multi-Purpose (2) Oct. 2008 17,005,000 3.0 - 3.75 6/18 9,350,000 Multi-Purpose June 2009 6,685,000 2.5 - 4.0 6/19 4,855,000 Taxable- Housing Improvements June 2009 505,000 1.5 - 3.0 6/14 205,000 Refunded Multi-Purpose (3) June 2009 5,840,000 2.0 - 4.0 6/16 3,465,000 Multi-Purpose Aug. 2010 7,420,000 2.0 - 2.75 6/20 5,935,000 Multi-Purpose June 2011 7,925,000 2.0 - 3.625 6/21 7,180,000 Taxable- Housing Improvements June 2011 820,000 0.65 - 1.1 6/13 420,000 Refunded Multi-Purpose and Library Construction (4) June 2011 10,930,000 2.0 - 3.625 6/21 10,730,000 Multi-Purpose June 2012 9,070,000 2.0 - 2.25 6/22 9,070,000 Taxable-Urban Renewal June 2012 620,000 0.5 - 0.6 6/14 620,000 Total General Obligation Bonds 75,320,000 $ 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 8,190,000 $ Refunded Wastewater Treatment Bonds (6) Oct. 2008 24,280,000 3.0 - 5.0 7/22 19,560,000 Refunded Wastewater Treatment Bonds (7) May 2009 8,660,000 3.5 - 5.0 7/25 8,110,000 Refunded Wastewater Treatment Bonds (8) Apr. 2010 15,080,000 3.0 - 4.0 7/20 12,400,000 Refunded Water Bonds (9) Oct. 2008 7,115,000 3.0 - 4.375 7/24 6,070,000 Refunded Water Bonds (10) May 2009 9,750,000 4.0 - 4.5 7/25 8,905,000 Refunded Water Bonds (11) June 2012 4,950,000 1.5 - 2.1 7/22 4,950,000 Total Revenue Bonds 68,185,000 $ 143,505,000 $ 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 (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, 2012, there were three series of Industrial Development Revenue Bonds, Facility Refunding Revenue Bonds, and Midwest Disaster Area Revenue Bonds outstanding, with an aggregate principal amount payable of $43,405,337. Debt Legal Compliance Legal Debt Margin: As of June 30, 2012, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows: Assessed valuation: Real property $ 4,491,302,568 Utilities 48,337,968 Total valuation $ 4,539,640,536 Debt limit, 5% of total assessed valuation $ 226,982,027 Debt applicable to debt limit: General obligation bonds 75,320,000 Legal debt margin $ 151,662,027 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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. Changes in Long-Term Liabilities - Notes Payable Note Payable activity for the year ended June 30, 2012, was as follows: Due Within July 1, 2011 Issues Retirements June 30, 2012 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, 2012, was as follows: Due Within July 1, 2011 Issues Retirements June 30, 2012 One Year Governmental activities: $ 2,172,907 1,238,766 $ 1,180,751 $ 2,230,922 $ 1,225,647 $ Business-type activities: $ 519,405 $ 331,517 290,601 $ $ 560,321 316,984 $ 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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, 2012, is $12,584,099, which is based on 91.1% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $1,229,402 will be recognized as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2012, was determined by engineers from Howard R. Green Company and approximated at $13,813,500. 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, 2012. 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, 2012, the Sanitation Fund had $14,450,385 in related equity in pooled cash and investments, at fair value designated for satisfaction of post-closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post-closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post-closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs Landfill Closure Post-closure care activity for the year ended June 30, 2012, was as follows: Due Within July 1, 2011 Issues Retirements June 30, 2012 One Year Business-type activities: $ 11,754,654 $ 829,445 -$ $ 12,584,099 -$ 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Other Post Employment Benefits Changes in Long-Term Liabilities - Other Post Employment Benefits Net OPEB Obligation July 1, 2011 Current Year June 30, 2012 Governmental activities: $ 1,705,631 $ 352,244 $ 2,057,875 Business-type activities: $ 551,710 $ 77,213 $ 628,923 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 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. 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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, 2012, the amount actually contributed to the plans, and changes in the City’s net OPEB obligation: Annual required contribution $ 591,292 Interest on net OPEB obligation 90,294 Adjustment to annual required contribution (80,621) Annual OPEB costs 600,965 Contributions made (171,508) Increase in net OPEB obligation 429,457 Net OPEB obligation beginning of year 2,257,341 Net OPEB obligation end of year $2,686,798 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, 2012. 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, 2012 are summarized as follows: Percentage of Annual Annual OPEB Cost Net OPEB Year Ended OPEB Cost Contributed from City Obligation June 30, 2010 $1,291,319 16.3% $1,746,488 June 30, 2011 $ 598,776 14.7% $2,257,342 June 30, 2012 $ 600,965 28.5% $2,686,798 Funded Status and Funding Progress: As of July 1, 2010, the most recent actuarial valuation date for the period July 1, 2011 through June 30, 2012, the actuarial accrued liability was $6,893,438, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $6,893,438. The covered payroll (annual payroll of active employees covered by the plans) was $29,842,842 and the ratio of the UAAL to covered payroll was 23.1%. As of June 30, 2012, 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. 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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, 2010 actuarial valuation date, the actuarial cost method used is the entry age normal method. The actuarial assumption includes a 4% discount rate and an inflation rate of 3% per annum. The projected annual medical trend rate is 2.2%. The ultimate medical trend rate is 6%. The medical trend rate is increased to 10.0% for year two and then reduced by 0.5% each year until reaching the 6% ultimate trend rate. The projected annual dental trend rate is 2.9%. The ultimate dental trend rate is 4%. The dental trend rate is increased to 5.5% for year two and then reduced by 0.5% each year until reaching the 4% ultimate trend rate. Mortality rates for active employees are from the RP-2000 Employee Table and for retirees are from RP- 2000 Healthy Annuitant Table, applied on a gender-specific basis. Annual retirement and termination probabilities were developed from the retirement probabilities from the MFPRSI and IPERS pension plan turnover tables, adjusted to be consistent with recent City experience. Projected claim costs of the health and dental plans are $765.61 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 FY12, the City entered into additional multiple short term loans totaling $1,565,405 and repaid multiple short term loans totaling $2,375,905. 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 City secured a $1.25 million I-JOBS grant that allows the program to acquire and rehabilitate 25 homes in the Changes in Short-Term Liabilities - Notes Payable Notes Payable activity for the year ended June 30, 2012, was as follows: Due Within July 1, 2011 Issues Retirements June 30, 2012 One Year Governmental activities: $ 1,615,500 1,565,405 $ 2,375,905 $ 805,000 $ 805,000 $ 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 designated UniverCity Neighborhoods. 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. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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, 2012 the City purchased property, liability, and workers’ compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $400,000 self-insured retention on workers’ compensation losses. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. Settled claims have not exceeded this commercial coverage in any of the past twenty four fiscal years. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund’s accrued liabilities balance includes a claims liability at June 30, 2012 based on the requirements of GASB Statement No. Components of Fund Balance Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Nonspendable: Inventory 244,538 $ - $ - $ - $ - $ - $ 244,538 $ Perpetual Care Principal 69,000 - - - - - 69,000 Total Nonspendable 313,538 - - - - - 313,538 Restricted for: Public Safety 464,039 - - - - - 464,039 Local Option Sales Tax 23,265,151 - - - - - 23,265,151 Debt Service - - - - 11,008,903 - 11,008,903 GO Bond Projects - - - - - 20,883,498 20,883,498 State Funding - - - 599,430 - - 599,430 Grant Agreement - - 387,292 - - - 387,292 Public Safety Employee Benefits - 1,799,526 - - - - 1,799,526 Other Restricted 49,661 - - - - 174,927 224,588 Total Restricted 23,778,851 1,799,526 387,292 599,430 11,008,903 21,058,425 58,632,427 Assigned to: Library Programs 575,818 - - - - - 575,818 Senior Center Programs 59,086 - - - - - 59,086 Replacement and Acquisition Reserves 4,469,978 - - - - - 4,469,978 Other Assigned 85,724 - - - - - 85,724 Total Assigned 5,190,606 - - - - - 5,190,606 Unassigned: 14,273,156 - - - - (365,781) 13,907,375 Total Fund Balances 43,556,151 $ 1,799,526 $ 387,292 $ 599,430 $ 11,008,903 $ 20,692,644 $ 78,043,946 $ 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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, 2012 and 2011 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2010 – 2011 $ 1,602,000 $ 92,000 $ 994,000 $ 700,000 2011 – 2012 700,000 691,000 207,000 1,184,000 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 $9,166,913. 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, 2012 and 2011 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2010 – 2011 $ 714,000 $ 6,259,000 $ 6,245,000 $ 728,000 2011 – 2012 728,000 6,147,000 6,159,000 716,000 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 11. Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2012 are as follows: The total significant encumbrances as of June 30, 2012 are as follows: Project Amount Bridge, street and traffic Paving and bridge construction, control construction engineering design and consulting 3,180,607 $ Other construction Public works, culture & recreation, Economic Dev, Fire & Police, construction 1,466,817 Parking Garage improvements and repair & maintenance 51,146 Wastewater South wastewater plant expansion and wastewater main repairs 44,197,342 Water Water main construction and flood mitigation construction 641,685 Airport Runway grading and paving 767,391 Stormwater Stormwater system improvements 38,338 50,343,326 $ Fund Project Amount Other Governmental Other Construction Transit buses and police equipment 793,797 $ 793,797 $ Fund 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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, 2012, 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 24.76% of earnable compensation of each member in FY 2012, 19.9% of earnable compensation in FY 2011, and 17.0% of earnable compensation in FY 2010. The contributions paid by the City for the years ended June 30, 2010, 2011, and 2012, were $1,349,558, $1,826,791, and $2,232,637 respectively, and was equal to the required contributions for each year. 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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 5.38% of their annual covered salary and the City is required to contribute 8.07% of annual covered payroll. Contribution requirements are established by state statute. The City’s contributions to IPERS for the years ended June 30, 2010, 2011, and 2012, were $1,767,350, $1,969,422, and $2,245,326 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 68,947 people and has almost 25,800 customers. The average daily use for fiscal year 2012 was approximately 5.50 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; four 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. 73 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Distribution System: The water flows through approximately 266 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 3,278 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, 2011. 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: 2003 - 5% 2004 - 5% 2005 0% 2006 0% 2007 - 5% 2008 0% 2009 0% 2010 0% 2011 0% 2012 0% 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2012, 2011, and 2010. 2012 2011 2010 Operating Revenues: Charges for services 8,419 $ 8,054 $ 7,957 $ Miscellaneous 26 42 28 Total operating revenues 8,445 8,096 7,985 Operating Expenses: Personal services 2,554 2,407 2,246 Commodities 967 929 987 Services and charges 2,132 2,128 1,920 5,653 5,464 5,153 Depreciation 2,275 2,230 2,180 Total operating expenses 7,928 7,694 7,333 Operating income 517 402 652 Nonoperating Revenues (Expenses): Gain ( Loss) on disposal of capital assets (10) - 5 Insurance Recoveries - 2 33 Operating Grants - - 6 Interest income 204 256 312 Interest expense (964) (1,032) (1,092) Total nonoperating revenues (expenses) (770) (774) (736) Income before capital contributions and transfers (253) (372) (84) Capital contributions 1,057 973 572 Transfers in 478 795 756 Transfers out (110) (336) (343) Change in net assets 1,172 1,060 901 Net Assets, Beginning 62,102 61,042 60,141 Net Assets, Ending 63,274 $ 62,102 $ 61,042 $ (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS WATER SYSTEM STATEMENT OF REVENUES, EXPENSES Last Three Fiscal Years 75 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2012 and the budget for the fiscal year ended June 30, 2013 on a cash basis. The following table summarizes the Water System funds on hand for the fiscal years ended June 30, 2012, 2011, and 2010. FY13 Actual Budget Percentage Budget Charges for services 8,226 $ 8,502 $ 96.75% 8,185 $ Interest income 567 173 327.75% 141 Miscellaneous 27 28 96.43% 39 Operating grants 37 2,445 1.51% 2,284 Transfers from other funds - 336 0.00% 336 Bond sales 4,990 5,060 98.62% - Total Receipts 13,847 $ 16,544 $ 83.70% 10,985 $ Personal services 2,710 $ 2,715 $ 99.82% 2,640 $ Commodities 529 749 70.63% 685 Services and charges 2,173 2,305 94.27% 2,061 Capital outlay 803 5,541 14.49% 4,248 Transfer to capital project funds 87 942 9.24% 1,595 Operating subsidy 23 23 100.00% 24 Debt service payments 3,831 3,869 99.02% 8,216 Total Disbursements 10,156 $ 16,144 $ 62.91% 19,469 $ WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2012 (amounts expressed in thousands) 2012 2011 2010 Operating Funds 8,284 $ 9,607 $ 11,636 $ Restricted and Designated Funds 4,260 4,665 4,595 Total Funds on Hand 12,544 $ 14,272 $ 16,231 $ WATER SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) 76 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Sewer System The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 254 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 68,947 people and has over 23,500 customers. The average daily combined treatment flow for 2012 was 8.28 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, 2010. 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: 2003 0% 2004 0% 2005 0% 2006 0% 2007 8% 2008 0% 2009 5% 2010 0% 2011 0% 2012 0% 77 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Financial Information: The following table summarizes the results of operations for the Sewer System for the fiscal years ended June 30, 2012, 2011, and 2010. 2012 2011 2010 Operating Revenues: Charges for services 12,670 $ 12,836 $ 12,637 $ Miscellaneous 145 63 73 Total operating revenues 12,815 12,899 12,710 Operating Expenses: Personal services 1,993 1,961 1,874 Commodities 954 895 645 Services and charges 2,716 2,621 2,531 5,663 5,477 5,050 Depreciation 3,952 4,017 4,178 Total operating expenses 9,615 9,494 9,228 Operating income 3,200 3,405 3,482 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets (12) (40) - Operating grants - - - Interest income 360 382 464 Interest expense (1,564) (1,704) (2,173) Total nonoperating revenues (expenses) (1,216) (1,362) (1,709) Income before capital contributions and transfers 1,984 2,043 1,773 Capital contributions 3,223 2,394 2,115 Transfers in 2,454 1,716 167 Transfers out (359) (171) (202) Change in net assets 7,302 5,982 3,853 Net Assets, Beginning 84,730 78,748 74,895 Net Assets, Ending 92,032 $ 84,730 $ 78,748 $ (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES Last Three Fiscal Years 78 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2012 and the budget for the fiscal year ended June 30, 2013 on a cash basis. The following table summarizes the Sewer System funds on hand for the fiscal years ended June 30, 2012, 2011, and 2010. FY13 Actual Budget Percentage Budget Charges for services 12,558 $ 12,752 $ 98.48% 12,759 $ Interest income 276 100 276.00% 301 Miscellaneous 162 57 284.21% 56 Operating grants 3,483 9,491 36.70% 12,808 Local option sales tax 479 12,596 3.80% 12,116 Bond sales - - 0.00% - Total Receipts 16,958 $ 34,996 $ 48.46% 38,040 $ Personal services 2,177 $ 2,160 $ 100.79% 2,374 $ Commodities 710 558 197.34% 659 Services and charges 5,492 2,783 127.24% 4,366 Capital outlay 341 25,251 1.35% 26,576 Transfer to capital project funds 336 1,649 20.38% 1,575 Operating subsidy 23 23 100.00% 24 Debt service payments 6,308 6,308 100.00% 6,412 Total Disbursements 15,387 $ 38,732 $ 39.73% 41,986 $ SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2012 (amounts expressed in thousands) 2012 2011 2010 Operating Funds 14,551 $ 12,882 $ 12,615 $ Restricted and Designated Funds 11,905 12,002 9,645 Total Funds on Hand 26,456 $ 24,884 $ 22,260 $ SEWER SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) 79 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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 32.75 (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 98% 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 1,385 permit holders. The largest customer for the monthly permit parking is the University of Iowa with 615 permits. There are currently over 576 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. 80 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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 2003 0% 0% 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% 81 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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 2003 0% 0% 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% 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 82 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Changes in Chauncey Swan Garage rates over the last ten fiscal years: Hourly Monthly 2003 0% 0% 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% 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 319 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 2003 0% 0% 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% 83 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 On-Street Parking Meters: The City operates s hort-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 138 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 600 Rates Annual $45.00 per year 84 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 Financial Information: The following table summarizes the results of operations for the Parking System for the fiscal years ended June 30, 2012, 2011, and 2010. 2012 2011 2010 Operating Revenues: Charges for services 4,743 $ 5,234 $ 5,377 $ Miscellaneous 162 104 26 Total operating revenues 4,905 5,338 5,403 Operating Expenses: Personal services 1,733 1,662 1,775 Commodities 107 75 248 Services and charges 1,194 1,183 1,126 3,034 2,920 3,149 Depreciation 815 908 905 Total operating expenses 3,849 3,828 4,054 Operating income 1,056 1,510 1,349 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets (10) - (15) Operating grants - - - Interest income 40 51 106 Interest expense (366) (408) (538) Total nonoperating revenues (expenses) (336) (357) (447) Income before capital contributions and transfers 720 1,153 902 Capital contributions 4 269 - Transfers in - - - Transfers out (16) - (110) Change in net assets 708 1,422 792 Net Assets, Beginning 16,014 14,592 13,800 Net Assets, Ending 16,722 $ 16,014 $ 14,592 $ STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) PARKING SYSTEM 85 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 The following table summarizes the budget and actual figures for the Parking System for the fiscal year ended June 30, 2012 and the budget for the fiscal year ended June 30, 2013 on a cash basis. The following table summarizes the Parking System funds on hand for the fiscal years ended June 30, 2012, 2011, and 2010. FY13 Actual Budget Percentage Budget Charges for services 4,467 $ 4,593 $ 97.26% 4,500 $ Interest income 39 30 130.00% 42 Miscellaneous 453 479 94.57% 322 Operating grants 273 273 100.00% - Bond sales - - 0.00% - Total Receipts 5,232 $ 5,375 $ 97.34% 4,864 $ Personal services 1,794 $ 2,024 $ 88.64% 1,881 $ Commodities 81 339 111.51% 134 Services and charges 1,540 1,381 23.89% 1,197 Capital outlay 1,377 3,679 37.43% 1,386 Transfer to capital project funds - - 0.00% 46 Interfund Loan Repayment 288 282 102.13% 254 Debt service payments 839 839 100.00% 839 Total Disbursements 5,919 $ 8,544 $ 69.28% 5,737 $ PARKING SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2012 (amounts expressed in thousands) 2012 2011 2010 Operating Funds 5,218 $ 5,928 $ 5,677 $ Restricted and Designated Funds 1,528 1,521 1,486 Total Funds on Hand 6,746 $ 7,449 $ 7,163 $ FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) PARKING SYSTEM 86 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 15. Subsequent events As of July 1, 2012, the City of Iowa City has reclassified the Transit Operations as an enterprise fund, which was previously recorded as part of the General Fund since the year ended June 30, 2003. The City of Iowa City believed this reclassification would highlight the extent to which fees and charges are sufficient to cover the cost of providing transit services, since the year ended June 30, 2008 the Transit Operations in the General Fund have provided surplus revenue. On November 29, 2012, the City of Iowa City received and awarded bonds for Taxable Urban Renewal Revenue Bonds, Series 2012D, 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. 16. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued eight statements not yet implemented by the City. The statements, which might impact the City’s financial statements, are as follows: Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, issued November 2010, will be effective for the fiscal year ending June 30, 2013. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements. Statement No. 61, The Financial Reporting Entity: Omnibus – an amendment of GASB Statements No. 14 and No. 34 ; issued November 2010, will be effective for the fiscal year ending June 30, 2013. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements ; issued December 2010, will be effective for the fiscal year ending June 30, 2013. The objective of this Statement is to incorporate into the GASB’s authoritative literature certain accounting and financial reporting guidance. Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position , issued June 2011, will be effective for the fiscal year ending June 30, 2013. This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. 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. 87 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2012 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. The City’s management has not yet determined the effect these statements will have on the City’s financial statements. 88 89 Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Property taxes 49,542 $ - $ 49,542 $ Delinquent property taxes 1 - 1 Tax increment financing taxes 839 - 839 Other city taxes 11,314 - 11,314 Licenses and permits 1,310 6 1,316 Intergovernmental 23,929 12,042 35,971 Charges for services 5,912 34,063 39,975 Use of money and property 895 1,509 2,404 Miscellaneous 3,522 1,731 5,253 Total revenues 97,264 49,351 146,615 Expenditures/Expenses: Public safety 20,576 - 20,576 Public works 13,390 - 13,390 Culture and recreation 12,445 - 12,445 Community and economic development 18,342 - 18,342 General government 7,610 - 7,610 Debt service 28,714 - 28,714 Capital outlay 14,088 - 14,088 Business-type - 50,986 50,986 Total expenditures/expenses 115,165 50,986 166,151 Excess (deficiency) of revenues over (under) expenditures/expenses (17,901) (1,635) (19,536) Other financing sources and uses, net 15,918 4,349 20,267 Net change in fund balances (1,983) 2,714 731 Balances, beginning of year 82,977 80,234 163,211 Balances, end of year 80,994 82,948 163,942 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, 2012 (dollar amounts expressed in thousands) BUDGETARY BASIS 90 Final to Actual Variance - Positive Original Final (Negative) 49,595 $ 49,595 $ (53) $ - - 1 846 846 (7) 10,312 11,149 165 1,224 1,224 92 48,735 89,253 (53,282) 40,684 40,808 (833) 1,265 1,265 1,139 5,207 5,890 (637) 157,868 200,030 (53,415) 21,155 22,168 1,592 13,958 14,178 788 12,557 12,898 453 10,441 24,882 6,540 8,384 8,284 674 15,226 28,726 12 30,734 80,671 66,583 58,959 91,867 40,881 171,414 283,674 117,523 (13,546) (83,644) 64,108 6,946 21,130 (863) (6,600) (62,514) 63,245 103,088 163,518 96,488 101,004 Budgeted Amounts 91 Accrual Modified Accrual Budget Basis Adjustments Basis Revenues 97,264 $ (2,224) $ 95,040 $ Expenditures 115,165 (19,104) 96,061 Net (17,901) 16,880 (1,021) Other financing sources (uses) 15,918 (6,073) 9,845 Beginning Fund Balances 82,977 $ (13,757) $ 69,220 $ Ending Fund Balances 80,994 $ (2,950) $ 78,044 $ Accrual Accrual Budget Basis Adjustments Basis Revenues 49,351 $ (5,063) $ 44,288 $ Expenditures 50,986 (7,139) 43,847 Net (1,635) 2,076 441 Other financing sources (uses) 4,349 5,715 10,064 Extraordinary items - (5,000) (5,000) Beginning Fund Balances 80,234 178,554 $ 258,788 Ending Fund Balances 82,948 $ 181,345 $ 264,293 $ 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, 2012 (dollar amounts expressed in thousands) 92 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2012 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 $106,986,000 and expenditures by $162,901,000. 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. 93 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, 2012 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, 2010 $ - $ 15,235,196 $ 15,235,196 0.00% $ 32,804,905 46.44% July 1, 2010 June 30, 2011 $ - $ 6,893,438 $ 6,893,438 0.00% $ 29,842,842 23.10% July 1, 2010 June 30, 2012 $ - $ 6,893,438 $ 6,893,438 0.00% $ 29,842,842 23.10% 94 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 PROJECTS FUNDS Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The fund in this category is as follows: Bridge, Street, and Traffic Control Construction Fund – accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems. Other Construction Fund – accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. 95 Metropolitan Bridge, Planning Street, and Organization Traffic Economic of Johnson Control Other Development County Construction Construction Total Assets Equity in pooled cash and investments - $ 141 $ 2,539 $ - $ 2,680 $ Receivables: Property tax 280 - - - 280 Accounts and unbilled usage - - - 8 8 Interest - - - 2 2 Due from other governments - 52 435 1,474 1,961 Assets held for resale - - 165 - 165 Restricted assets: Equity in pooled cash and investments - - 1 21,734 21,735 Total assets 280 $ 193 $ 3,140 $ 23,218 $ 26,831 $ Liabilities and Fund Balances Liabilities: Accounts payable 3$ 9 $ 31 $ 137 $ 180 $ Contracts payable - - 224 1,106 1,330 Accrued liabilities - 9 4 9 22 Advances from other funds 76 - - 265 341 Due to other governments - - 2,947 - 2,947 Deferred revenue 280 - 220 818 1,318 Liabilities payable from restricted assets: Deposits - - 1 - 1 Total liabilities 359 18 3,427 2,335 6,139 Fund balances: Restricted - 175 - 20,883 21,058 Unassigned (79) - (287) - (366) Total fund balances (79) 175 (287) 20,883 20,692 Total liabilities and fund balances 280 $ 193 $ 3,140 $ 23,218 $ 26,831 $ Capital Projects Special Revenue CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2012 (amounts expressed in thousands) 96 Metropolitan Bridge, Planning Street, and Organization Traffic Economic of Johnson Control Other Development County Construction Construction Total Revenues Property taxes 838 $ -$ 208 $ -$ 1,046 $ Intergovernmental - 316 1,517 2,012 3,845 Use of money and property - - 11 7 18 Miscellaneous - 8 95 125 228 Total revenues 838 324 1,831 2,144 5,137 Expenditures Current: Public safety - - - 309 309 Public works - - 2,249 831 3,080 Culture and recreation - - 11 911 922 Community and economic development 559 653 - 305 1,517 General government - - - 170 170 Capital outlay - - 1,481 4,585 6,066 Total expenditures 559 653 3,741 7,111 12,064 Excess (deficiency) of revenues over (under) expenditures 279 (329) (1,910) (4,967) (6,927) Other Financing Sources (Uses) Issuance of bonds - - - 9,690 9,690 Insurance recoveries - - - 53 53 Premium on issuance of bonds - - - 165 165 Transfers in - 409 3,510 4,897 8,816 Transfers out (1,003) - (146) (5,015) (6,164) Total other financing sources and (uses) (1,003) 409 3,364 9,790 12,560 Net change in fund balances (724) 80 1,454 4,823 5,633 Fund Balances, Beginning 645 95 (1,741) 16,060 15,059 Fund Balances, Ending (79) $ 175 $ (287) $ 20,883 $ 20,692 $ COMBINING STATEMENT OF REVENUES, EXPENDITURES, CITY OF IOWA CITY, IOWA Capital Projects Special Revenue For the Year Ended June 30, 2012 (amounts expressed in thousands) NONMAJOR GOVERNMENTAL FUNDS AND CHANGES IN FUND BALANCES 97 98 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. 99 Cable Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments 642 $ 743 $ 1,483 $ 2,868 $ Receivables: Accounts and unbilled usage - 96 187 283 Interest 2 1 3 6 Due from other governments 585 - - 585 Total current assets 1,229 840 1,673 3,742 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 108 - 114 222 Other post employment benefits asset 8 - - 8 Capital assets: Land 7,264 2,167 - 9,431 Buildings 4,174 - 741 4,915 Improvements other than buildings 357 - - 357 Machinery and equipment 281 259 110 650 Infrastructure 12,460 37,369 - 49,829 Accumulated depreciation (4,261) (9,151) (358) (13,770) Construction in progress 1,740 1,750 - 3,490 Total noncurrent assets 22,131 32,394 607 55,132 Total assets 23,360 33,234 2,280 58,874 Liabilities Current liabilities: Accounts payable 5 12 114 131 Contracts payable 464 13 - 477 Accrued liabilities 1 4 9 14 Employee vested benefits 2 1 17 20 Total current liabilities 472 30 140 642 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 8 - - 8 Advances from other funds 1,139 - - 1,139 Employee vested benefits 2 1 13 16 Other post employment benefits obligation - 5 7 12 Total noncurrent liabilities 1,149 6 20 1,175 Total liabilities 1,621 36 160 1,817 Net Assets Invested in capital assets, net of related debt 22,015 32,394 493 54,902 Restricted for future improvements 100 - - 100 Unrestricted (376) 804 1,627 2,055 Total net assets 21,739 $ 33,198 $ 2,120 $ 57,057 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2012 100 Cable Airport Stormwater Television Total Operating Revenues: Charges for services 306 $ 811 $ 824 $ 1,941 $ Miscellaneous 3 1 - 4 Total operating revenues 309 812 824 1,945 Operating Expenses: Personal services 36 203 490 729 Commodities 42 138 11 191 Services and charges 316 246 158 720 394 587 659 1,640 Depreciation 740 724 36 1,500 Total operating expenses 1,134 1,311 695 3,140 Operating income (loss) (825) (499) 129 (1,195) Nonoperating Revenues (Expenses): Gain on disposal of capital assets 351 - - 351 Interest income 2 1 4 7 Total nonoperating revenues (expenses) 353 1 4 358 Income (loss) before capital contributions and transfers (472) (498) 133 (837) Capital contributions 1,576 570 - 2,146 Transfers in 360 981 - 1,341 Transfers out (14) (70) (55) (139) . Change in net assets 1,450 983 78 2,511 Net Assets, Beginning 20,289 32,215 2,042 54,546 Net Assets, Ending 21,739 $ 33,198 $ 2,120 $ 57,057 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2012 AND CHANGES IN FUND NET ASSETS 101 Cable Airport Stormwater Television Total Cash Flows From Operating Activities Receipts from customers and users 308 $ 787 $ 821 $ 1,916 $ Payments to suppliers (355) (397) (164) (916) Payments to employees (47) (208) (512) (767) Net cash flows from operating activities (94) 182 145 233 Cash Flows From Noncapital Financing Activities Transfers from other funds 360 981 - 1,341 Transfers to other funds (14) (70) (55) (139) Repayment of advances from other funds (324) - - (324) Net cash flows from noncapital financing activities 22 911 (55) 878 Cash Flows From Capital and Related Financing Activities Capital grants received 1,296 - - 1,296 Acquisition and construction of property and equipment (1,322) (1,016) - (2,338) Proceeds from sale of property 373 - - 373 Net cash flows from capital and related financing activities 347 (1,016) - (669) Cash Flows From Investing Activities Interest on investments 1 1 4 6 Net increase (decrease) in cash and cash equivalents 276 78 94 448 Cash and Cash Equivalents, Beginning 474 665 1,503 2,642 Cash and Cash Equivalents, Ending 750 $ 743 $ 1,597 $ 3,090 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) (825) $ (499) $ 129 $ (1,195) $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 740 724 36 1,500 Changes in: Receivables: Accounts and unbilled usage - (25) (3) (28) Accounts payable 3 (13) 5 (5) Accrued liabilities (2) (5) (14) (21) Employee vested benefits 2 (1) 4 5 Deposits (1) - - (1) Other post employment benefits asset/obligation (11) 1 (12) (22) Total adjustments 731 681 16 1,428 Net cash flows from operating activities (94) $ 182 $ 145 $ 233 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 570 $ -$ 570 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2012 102 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. 103 Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments 8,129 $ 732 $ 11,986 $ 2,734 $ 23,581 $ Receivables: Interest 16 1 25 6 48 Due from other governments 93 - - - 93 Inventories 490 - - - 490 Total current assets 8,728 733 12,011 2,740 24,212 Noncurrent assets: Other post employment benefits asset 3 - 25 - 28 Capital assets: Land 45 - - - 45 Buildings 578 - - 243 821 Improvements other than buildings 50 - - - 50 Machinery and equipment 13,892 203 19 1,617 15,731 Infrastructure - - - 1,577 1,577 Accumulated depreciation (9,496) (135) (11) (1,922) (11,564) Construction in progress 90 - - - 90 Total noncurrent assets 5,162 68 33 1,515 6,778 Total assets 13,890 801 12,044 4,255 30,990 Liabilities Current liabilities: Accounts payable 240 - 687 43 970 Accrued liabilities 14 - 1,906 18 1,938 Employee vested benefits 35 1 3 24 63 Total current liabilities 289 1 2,596 85 2,971 Noncurrent liabilities: Employee vested benefits 26 1 3 20 50 Other post employment benefits obligation - 3 - 53 56 Total noncurrent liabilities 26 4 3 73 106 Total liabilities 315 5 2,599 158 3,077 Net Assets Invested in capital assets, net of related debt 5,159 68 8 1,515 6,750 Unrestricted 8,416 728 9,437 2,582 21,163 Total net assets 13,575 $ 796 $ 9,445 $ 4,097 $ 27,913 $ (amounts expressed in thousands) CITY OF IOWA CITY COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2012 104 Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services 5,405 $ 238 $ 9,732 $ 1,998 $ 17,373 $ Miscellaneous - - 3 193 196 Total operating revenues 5,405 238 9,735 2,191 17,569 Operating Expenses: Personal services 868 39 272 1,049 2,228 Commodities 2,403 3 589 260 3,255 Services and charges 327 140 8,247 493 9,207 3,598 182 9,108 1,802 14,690 Depreciation 1,126 26 4 230 1,386 Total operating expenses 4,724 208 9,112 2,032 16,076 Operating income (loss) 681 30 623 159 1,493 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 195 - - 5 200 Interest income 17 2 29 7 55 Total nonoperating revenues (expenses) 212 2 29 12 255 Income (loss) before capital contributions and transfers 893 32 652 171 1,748 Transfers in 44 - - 7 51 Transfers out - (1) - - (1) Change in net assets 937 31 652 178 1,798 Net Assets, Beginning 12,638 765 8,793 3,919 26,115 Net Assets, Ending 13,575 $ 796 $ 9,445 $ 4,097 $ 27,913 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended June 30, 2012 AND CHANGES IN FUND NET ASSETS 105 Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from customers and users 5,409 $ 238 $ 9,735 $ 2,191 $ 17,573 $ Payments to suppliers (2,888) (144) (8,185) (742) (11,959) Payments to employees (896) (40) 200 (1,073) (1,809) Net cash flows from operating activities 1,625 54 1,750 376 3,805 Cash Flows From Noncapital Financing Activities Transfers from other funds 44 - - 7 51 Operating transfers to other funds - (1) - - (1) Net cash flows from noncapital financing activities 44 (1) - 7 50 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (1,057) (17) (5) (130) (1,209) Proceeds from sale of property 227 - - 5 232 Net cash flows from capital and related financing activities (830) (17) (5) (125) (977) Cash Flows From Investing Activities Interest on investments 15 2 23 6 46 Net increase in cash and cash equivalents 854 38 1,768 264 2,924 Cash and Cash Equivalents, Beginning 7,275 694 10,218 2,470 20,657 Cash and Cash Equivalents, Ending 8,129 $ 732 $ 11,986 $ 2,734 $ 23,581 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) 681 $ 30 $ 623 $ 159 $ 1,493 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 1,126 26 4 230 1,386 Changes in: Receivables: Due from other governments 4 - - - 4 Inventories 27 - - - 27 Accounts payable (185) (1) 651 11 476 Accrued liabilities (25) (2) 471 (31) 413 Employee vested benefits (3) 1 - 1 (1) Other post employment benefits asset/obligation - - 1 6 7 Total adjustments 944 24 1,127 217 2,312 Net cash flows from operating activities 1,625 $ 54 $ 1,750 $ 376 $ 3,805 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2012 106 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. 107 Balance Balance July 1, 2011 Increases Decreases June 30, 2012 Project Green Assets Equity in pooled cash and investments 206 $ 57 $ 59 $ 204 $ Interest receivable 1 1 1 1 Total assets 207 $ 58 $ 60 $ 205 $ Liabilities Due to agency 207 $ 58 $ 60 $ 205 $ Total liabilities 207 $ 58 $ 60 $ 205 $ Library Foundation Assets Equity in pooled cash and investments 2 $ 9 $ 11 $ - $ Accounts receivable 9 - - 9 11 $ 9$ 11 $ 9$ Liabilities Accrued liabilities 11 $ 9 $ 11 $ 9 $ Total liabilities 11 $ 9$ 11 $ 9$ Total Agency Funds Assets Equity in pooled cash and investments 208 $ 66 $ 70 $ 204 $ Accounts receivable 9 - - 9 Interest receivable 1 1 1 1 Total assets 218 $ 67 $ 71 $ 214 $ Liabilities Accrued liabilities 11 $ 9 $ 11 $ 9 $ Due to agency 207 58 60 205 Total liabilities 218 $ 67 $ 71 $ 214 $ (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended June 30, 2012 AGENCY FUNDS 108 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 111 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 116 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 126 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 136 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 138 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. 109 110 20 0 3 2 0 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 Go v e r n m e n t a l a c t i v i t i e s I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 7 3 ,4 4 7 $ 6 7 , 0 9 0 $ 8 4 , 7 6 8 $ 9 5 , 2 2 7 $ 1 0 1 , 0 2 7 $ 1 0 4 , 8 3 3 $ 1 0 0 , 7 4 1 $ 1 1 1 , 7 0 3 $ 1 2 3 , 9 3 5 $ 1 3 5 , 9 9 8 $ R e s t r i c t e d 22 , 4 9 9 1 7 , 7 0 5 1 6 , 9 7 3 6 , 8 5 2 8 , 1 8 1 2 3 , 7 4 1 2 6 , 5 8 6 2 5 , 5 8 8 3 1 , 1 7 9 3 5 , 0 2 1 U n r e s t r i c t e d 16 , 9 2 6 1 1 , 7 0 0 3 , 7 9 3 1 0 , 8 2 7 1 1 , 0 4 3 1 , 1 1 9 1 7 , 9 3 8 3 2 , 4 7 8 3 6 , 8 6 2 3 8 , 9 0 6 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s 1 1 2 , 8 7 2 $ 9 6 , 4 9 5 $ 1 0 5 , 5 3 4 $ 1 1 2 , 9 0 6 $ 1 2 0 , 2 5 1 $ 1 2 9 , 6 9 3 $ 1 4 5 , 2 6 5 $ 1 6 9 , 7 6 9 $ 1 9 1 , 9 7 6 $ 2 0 9 , 9 2 5 $ Bu s i n e s s - t y p e a c t i v i t i e s I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 1 1, 4 8 7 $ 1 5 0 , 8 1 7 $ 1 5 0 , 7 9 7 $ 1 5 5 , 3 4 6 $ 1 7 2 , 5 1 8 $ 1 5 6 , 0 7 5 $ 1 6 2 , 2 1 1 $ 1 7 2 , 6 0 1 $ 1 8 6 , 1 7 7 $ 1 9 5 , 0 7 3 $ R e s t r i c t e d 24 , 4 2 0 1 4 , 9 3 2 1 5 , 0 3 8 1 5 , 6 8 2 2 3 , 8 9 3 2 1 , 3 2 0 1 9 , 1 5 9 1 7 , 5 8 8 2 0 , 6 5 8 2 0 , 1 7 6 U n r e s t r i c t e d 33 , 3 3 9 3 6 , 2 4 6 4 0 , 7 8 0 4 2 , 9 8 8 3 3 , 6 9 5 6 0 , 2 2 5 6 3 , 8 4 2 6 5 , 7 2 5 6 1 , 0 3 2 5 8 , 8 5 0 To t a l b u s i n e s s - t y p e a c t i v i t e s n e t a s s e t s 1 6 9 , 2 4 6 $ 2 0 1 , 9 9 5 $ 2 0 6 , 6 1 5 $ 2 1 4 , 0 1 6 $ 2 3 0 , 1 0 6 $ 2 3 7 , 6 2 0 $ 2 4 5 , 2 1 2 $ 2 5 5 , 9 1 4 $ 2 6 7 , 8 6 7 $ 2 7 4 , 0 9 9 $ Pr i m a r y g o v e r n m e n t I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 8 4, 9 3 4 $ 2 1 7 , 9 0 7 $ 2 3 5 , 5 6 5 $ 2 5 0 , 5 7 3 $ 2 7 3 , 5 4 5 $ 2 6 0 , 9 0 8 $ 2 6 2 , 9 5 2 $ 2 8 4 , 3 0 4 $ 3 1 0 , 1 1 2 $ 3 3 1 , 0 7 1 $ R e s t r i c t e d 46 , 9 1 9 3 2 , 6 3 7 3 2 , 0 1 1 2 2 , 5 3 4 3 2 , 0 7 4 4 5 , 0 6 1 4 5 , 0 2 5 4 3 , 1 7 6 5 1 , 8 3 7 5 5 , 1 9 7 U n r e s t r i c t e d 50 , 2 6 5 4 7 , 9 4 6 4 4 , 5 7 3 5 3 , 8 1 5 4 4 , 7 3 8 6 1 , 3 4 4 8 2 , 5 0 0 9 8 , 2 0 3 9 7 , 8 9 4 9 7 , 7 5 6 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s 2 8 2 , 1 1 8 $ 2 9 8 , 4 9 0 $ 3 1 2 , 1 4 9 $ 3 2 6 , 9 2 2 $ 3 5 0 , 3 5 7 $ 3 6 7 , 3 1 3 $ 3 9 0 , 4 7 7 $ 4 2 5 , 6 8 3 $ 4 5 9 , 8 4 3 $ 4 8 4 , 0 2 4 $ Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A NE T A S S E T S 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 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 ) (A c c r u a l b a s i s o f a c c o u n t i n g ) 111 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Ex p e n s e s G o v e r n m e n t a l a c t i v i t i e s : P u b l i c s a f e t y 13 , 8 4 4 $ 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 , 8 6 7 $ 21 , 1 8 6 $ P u b l i c w o r k s 11 , 5 3 9 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 , 1 4 5 17 , 5 5 6 C u l t u r e a n d r e c r e a t i o n 10 , 1 3 1 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 , 8 1 1 13 , 1 0 7 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 3, 1 3 3 2, 5 8 0 6,9 6 0 6, 2 6 4 4, 6 8 0 1, 8 5 0 8, 7 2 6 16 , 9 1 3 16 , 5 0 1 16 , 3 0 5 G e n e r a l g o v e r n m e n t 6, 2 5 1 6, 5 2 7 6,5 0 0 6, 8 9 2 7, 2 5 8 7, 4 3 3 7, 6 0 0 7, 5 4 9 7, 3 5 6 7, 5 9 1 D e b t s e r v i c e 3, 6 6 2 3, 4 4 0 3,6 0 2 3, 4 0 4 3, 4 5 9 3, 5 1 7 3, 2 6 4 2, 9 7 0 2, 8 4 1 2, 4 0 0 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 xp e n s e s 48 , 5 6 0 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 , 5 2 1 78 , 1 4 5 B u s i n e s s - t y p e a c t i v i t i e s : W a s t e w a t e r 12 , 0 8 6 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 , 9 7 1 11 , 0 6 9 W a t e r 7, 8 6 1 8, 0 1 1 8,3 1 3 9, 3 2 4 8, 8 2 3 8, 8 0 4 9, 1 8 5 8, 3 0 9 8, 5 2 3 8, 7 8 1 S a n i t a t i o n 4, 0 8 2 6, 1 0 3 6,0 3 1 6, 1 0 1 6, 6 8 4 6, 8 6 8 7, 2 9 6 7, 7 0 5 7, 4 6 1 8, 3 1 5 H o u s i n g a u t h o r i t y 6, 5 1 9 7, 2 1 9 7,4 6 6 7, 0 2 6 6, 8 8 4 7, 3 7 4 7, 2 3 8 7, 8 3 8 7, 4 4 8 7, 9 1 1 P a r k i n g 3, 5 5 4 3, 8 9 8 3,9 8 9 3, 8 8 4 4, 4 0 3 3, 9 1 3 4, 4 8 9 4, 5 3 6 4, 1 3 5 4, 1 6 7 A i r p o r t 43 1 51 5 52 0 51 2 41 8 56 0 69 3 72 4 1, 0 4 9 1, 1 2 7 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, 4 1 8 1, 3 0 4 C a b l e t e l e v i s i o n 68 7 54 9 60 7 57 6 52 5 59 8 63 3 64 5 63 8 68 9 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 ex p e n s e s 35 , 2 2 0 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 , 6 4 3 43 , 3 6 3 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 es 83 , 7 8 0 $ 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 $ 11 7 , 1 6 4 $ 12 1 , 5 0 8 $ Pr o g r a m R e v e n u e s G o v e r n m e n t a l a c t i v i t i e s : C h a r g e s f o r s e r v i c e s P u b l i c s a f e t y 2, 5 0 7 $ 3, 0 3 8 $ 2,9 2 8 $ 2, 9 7 1 $ 3, 0 8 8 $ 3, 0 1 9 $ 2, 9 6 8 $ 2, 9 8 0 $ 3, 2 7 9 $ 3, 4 0 1 $ P u b l i c w o r k s 1, 1 1 8 1, 0 0 6 1,0 7 6 1, 0 6 2 1, 2 2 9 1, 0 4 7 1, 3 9 2 1, 0 6 1 1, 1 1 7 1, 1 1 2 C u l t u r e a n d r e c r e a t i o n 1, 1 4 5 63 0 65 3 70 7 71 2 68 0 71 5 77 3 87 2 82 5 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 19 2 - - - - - - - - - G e n e r a l g o v e r n m e n t 1, 4 1 6 1, 4 2 8 1,4 8 2 1, 5 5 6 1, 5 6 9 1, 6 3 3 1, 6 2 6 2, 5 7 4 2, 9 3 1 2, 8 1 7 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 2, 9 6 5 2, 1 5 0 2,5 9 2 2, 9 3 7 3, 2 1 5 3, 6 1 1 8, 1 8 5 15 , 5 5 4 13 , 5 1 7 8, 6 8 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 2, 2 0 5 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, 0 4 8 6, 0 7 8 T o t a l g o v e r n m e n t a l a c t i v i t i e s p ro g r a m r e v e n u e s 11 , 5 4 8 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 , 7 6 4 22 , 9 1 5 B u s i n e s s - t y p e a c t i v i t i e s : C h a r g e s f o r s e r v i c e s : W a s t e w a t e r 12 , 4 4 5 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 , 8 3 6 12 , 6 7 0 W a t e r 9, 6 7 7 9, 1 6 4 8,6 0 2 9, 0 1 2 8, 2 4 0 8, 1 9 5 8, 1 0 7 7, 9 5 7 8, 0 5 4 8, 4 1 9 S a n i t a t i o n 6, 5 3 1 7, 1 1 1 7,1 5 4 7, 1 3 3 7, 2 0 4 7, 8 5 3 8, 2 8 6 8, 0 9 6 8, 2 5 9 8, 1 1 5 H o u s i n g a u t h o r i t y 22 1 21 9 18 1 16 8 13 2 14 9 18 1 18 0 20 8 20 7 P a r k i n g 3, 6 3 6 4, 0 1 1 4,0 4 5 3, 9 3 6 4, 7 0 4 4, 6 7 3 5, 4 3 8 5, 3 7 7 5, 2 3 4 4, 7 4 3 A i r p o r t 18 0 21 3 22 0 26 4 23 4 25 8 24 8 28 9 29 3 30 6 S t o r m w a t e r - 10 4 59 2 59 7 62 2 61 6 62 2 61 7 64 1 81 1 C a b l e T e l e v i s i o n 29 8 67 3 70 8 71 8 72 6 81 4 78 8 79 0 80 9 82 4 (c o n t i n u e d ) Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N N E T A S S E T S 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 ) 112 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 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 : W a s t e w a te r 1, 0 7 7 96 8 76 1 77 3 1, 5 3 9 57 7 26 6 2, 1 1 5 2, 3 9 4 3, 2 2 3 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : W a t e r 64 0 45 2 58 8 60 6 84 5 31 4 13 2 57 2 97 3 97 7 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S a n i t a t io 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 35 8 1, 5 7 6 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S t o r m w a te r - 71 7 75 5 46 8 1, 2 5 1 30 2 68 54 1 14 0 43 6 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : 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 - - 26 9 4 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 ng a u t h o r i t y 6, 2 9 1 6, 9 5 0 7,0 1 2 7, 4 1 4 7, 1 6 5 6, 2 8 1 6, 6 6 8 7, 7 6 5 7, 4 3 8 6, 7 8 2 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 13 1 - - - - - 1 5 6 - - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : A i r p o rt 3 6 - - - - - 2 - - - 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 at i o n 2 0 1 9 - 3 6 - 6 0 7 6 1 0 - 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 wa t e r - - - - 1 - 1 - - - T o t a l b u s i n e s s - t y p e a c t i v i t i e s pr o g r a m r e v e n u e s 41 , 3 6 4 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 , 9 2 7 49 , 0 9 5 T o t a l p r i m a r y g o v e r n m e n t r e v e n u es 52 , 9 1 2 $ 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 , 6 9 1 $ 72 , 0 1 0 $ Ne t ( E x p e n s e ) / R e v e n u e s G o v e r n m e n t a l a c t i v i t i e s (3 7 , 0 1 2 ) $ (3 5 , 5 8 6 ) $ (3 8 , 8 0 0 ) $ (4 4 , 3 4 9 ) $ (4 3 , 5 2 5 ) $ (4 8 , 7 5 4 ) $ (4 6 , 4 1 2 ) $ (4 5 , 1 9 8 ) $ (4 7 , 7 5 7 ) $ (5 5 , 2 3 0 ) $ B u s i n e s s - t y p e a c t i v i t i e s 6, 1 4 4 3, 9 9 6 2,4 5 4 4, 4 5 8 6, 2 2 9 3, 0 0 9 4, 5 4 3 8, 0 7 2 6, 2 8 4 5, 7 3 2 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 pe n s e (3 0 , 8 6 8 ) $ (3 1 , 5 9 0 ) $ (3 6 , 3 4 6 ) $ (3 9 , 8 9 1 ) $ (3 7 , 2 9 6 ) $ (4 5 , 7 4 5 ) $ (4 1 , 8 6 9 ) $ (3 7 , 1 2 6 ) $ (4 1 , 4 7 3 ) $ (4 9 , 4 9 8 ) $ Ge n e r a l R e v e n u e s a n d O t h e r C h a n g e s i n N e t A s s e t s G o v e r n m e n t a l a c t i v i t i e s : G e n e r a l r e v e n u e s : P r o p e r t y t a x e s 32 , 2 5 7 $ 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 , 0 1 1 $ 50 , 5 1 6 $ R o a d u s e t a x 5, 1 4 4 5, 3 1 1 5,2 6 9 5, 3 0 3 5, 3 0 5 5, 4 3 2 5, 2 5 4 5, 5 2 5 6, 0 6 8 6, 3 9 4 L o c a l S a l e s O p t i o n t a x - - - - - - - 8, 1 4 1 8, 9 1 1 8, 6 4 4 O t h e r t a x e s 1, 3 9 9 1, 6 0 9 1,3 5 1 1, 2 4 0 1, 4 1 2 1, 4 3 5 1, 4 8 9 1, 5 3 5 2, 4 6 4 2, 4 9 1 E a r n i n g s o n i n v e s t m e n t s 1, 2 0 7 1, 0 5 6 1,5 7 6 2, 6 7 8 4, 0 4 5 3, 9 3 2 3, 0 5 7 1, 7 6 6 1, 5 3 9 1, 8 2 3 M i s c e l l a n e o u s 3, 1 7 4 3, 7 4 6 3,9 9 4 4, 4 2 2 3, 6 5 6 3, 5 1 6 4, 8 9 4 3, 8 9 3 6, 2 3 0 4, 2 2 8 G a i n o n s a l e o f a s s e t s (1 , 7 2 6 ) 65 95 10 0 28 1 (7 ) - - 76 1 2, 9 5 0 T r a n s f e r s 1, 4 4 4 (1 , 8 4 0 ) 64 5 20 8 (5 , 3 2 1 ) 48 8 20 5 (6 2 5 ) (4 , 0 2 0 ) (3 , 8 6 7 ) T o t a l g o v e r n m e n t a l a c t i v i t i e s 42 , 8 9 9 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 , 9 6 4 73 , 1 7 9 Bu s i n e s s - t y p e a c t i v i t i e s : G e n e r a l r e v e n u e s : E a r n i n g s o n i n v e s t m e n t s 1, 3 0 5 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 95 4 81 3 G a i n o n s a l e o f a s s e t s 31 5 1, 0 0 9 30 4 18 5 59 1 1, 2 6 0 36 0 23 0 31 4 33 6 M i s c e l l a n e o u s 99 4 33 5 41 8 39 1 34 3 45 4 31 7 46 4 38 1 48 4 T r a n s f e r s (1 , 4 4 4 ) 1, 8 4 0 (6 4 5 ) (2 0 8 ) 5, 3 2 1 (4 8 8 ) (2 0 5 ) 62 5 4, 0 2 0 3, 8 6 7 E x t r a o r d i n a r y i t e m s - - - - - - - - - (5 , 0 0 0 ) T o t a l b u s i n e s s - t y p e a c t i v i t i e s 1, 1 7 0 4, 1 7 5 1,8 4 8 2, 9 4 3 9, 8 6 1 4, 5 0 5 3, 0 4 9 2, 6 3 0 5, 6 6 9 50 0 T o t a l p r i m a r y g o v e r n m e n t 44 , 0 6 9 $ 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 , 6 3 3 $ 73 , 6 7 9 $ Ch a n g e i n N e t A s s e t s G o v e r n m e n t a l a c t i v i t e s 5, 8 8 7 $ 8, 5 3 4 $ 9,4 5 7 $ 7, 3 7 2 $ 7, 3 4 5 $ 9, 4 4 2 $ 15 , 5 7 2 $ 24 , 5 0 4 $ 22 , 2 0 7 $ 17 , 9 4 9 $ B u s i n e s s - t y p e a c t i v i t e s 7, 3 1 4 8, 1 7 1 4,3 0 2 7, 4 0 1 16 , 0 9 0 7, 5 1 4 7, 5 9 2 10 , 7 0 2 11 , 9 5 3 6, 2 3 2 T o t a l p r i m a r y g o v e r n m e n t 13 , 2 0 1 $ 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 , 1 6 0 $ 24 , 1 8 1 $ Fi s c a l Y e a r 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 ) CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N N E T A S S E T S ( c o n t i n u e d ) 113 20 0 3 2 0 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 20 1 2 Ge n e r a l F u n d N o n s p e n d a b l e - $ - $ - $ - $ - $ - $ - $ - $ 3 3 1 $ 3 1 4 $ R e s t r i c t e d - - - - - - - - 1 6 , 2 6 8 2 3 , 7 7 9 A s s i g n e d - - - - - - - - 3 , 5 4 2 5 , 1 9 1 R e s e r v e d 1, 0 9 4 3 9 6 3 6 2 5 7 0 5 6 8 4 4 6 5 5 5 4 0 6 - - U n a s s i g n e d - - - - - - - - 1 5 , 9 3 1 1 4 , 2 7 3 U n r e s e r v e d 13 , 0 1 2 1 4 , 3 0 1 1 5 , 5 2 5 1 6 , 5 5 1 1 8 , 5 2 8 1 4 , 4 8 8 1 5 , 3 6 2 2 6 , 1 0 1 - - To t a l g e n e r a l f u n d 14 , 1 0 6 $ 1 4 , 6 9 7 $ 1 5 , 8 8 7 $ 1 7 , 1 2 1 $ 1 9 , 0 9 6 $ 1 4 , 9 3 4 $ 1 5 , 9 1 7 $ 2 6 , 5 0 7 $ 3 6 , 0 7 2 $ 4 3 , 5 5 7 $ 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 $ 3 4 , 8 5 3 $ R e s e r v e d 11 , 5 3 6 1 , 6 7 7 2 , 1 9 8 1 , 5 9 2 1 , 9 8 4 3 , 1 0 7 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 4 , 4 4 8 6 , 9 3 0 3 , 0 6 7 2 , 7 2 5 4 , 2 8 9 8 , 6 9 1 1 1 , 7 5 9 1 3 , 9 5 2 - - U n a s s i g n e d - - - - - - - - ( 1 , 7 4 1 ) ( 3 6 6 ) U n r e s e r v e d , r e p o r t e d i n : S p e c i a l r e v e n u e f u n d s 3 , 8 1 9 9 , 3 7 9 6 , 2 2 2 3 , 4 2 2 3 , 3 6 6 2 , 5 7 1 ( 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 1 , 0 4 7 3 , 8 8 2 6 , 1 4 3 7 , 0 9 3 7 , 8 9 4 1 1 , 1 1 8 1 0 , 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 2 0 , 8 5 0 $ 2 1 , 8 6 8 $ 1 7 , 6 3 0 $ 1 4 , 8 3 2 $ 1 7 , 5 3 3 $ 2 5 , 4 8 7 $ 2 6 , 2 0 6 $ 2 4 , 2 2 4 $ 3 3 , 1 4 8 $ 3 4 , 4 8 7 $ 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 ef i n i t i o n s , i s s 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 ng 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 ar 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 ly 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 ob 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 ta l f u n d s . Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A FU N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t 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 ) 114 20 0 3 2 0 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 Re v e n u e s : P r o p e r t y t a x e s a n d a s s e s s m e n t s 3 1 , 9 6 6 $ 3 5 , 5 3 8 $ 3 6 , 6 7 7 $ 3 9 , 0 1 1 $ 4 2 , 9 0 5 $ 4 4 , 8 3 5 $ 4 8 , 5 7 2 $ 5 9 , 1 4 3 $ 5 9 , 3 8 7 $ 6 1 , 6 4 9 $ L i c e n s e s a n d p e r m i t s 96 1 1 , 3 6 1 1 , 2 5 5 1 , 2 7 9 1 , 4 0 4 1 , 2 7 0 1 , 2 8 4 1 , 2 1 1 1 , 4 1 2 1 , 3 0 7 I n t e r g o v e r n m e n t a l 12 , 1 9 3 1 2 , 0 5 8 1 5 , 5 4 6 1 4 , 2 6 0 1 3 , 4 5 5 1 2 , 7 6 4 1 9 , 5 2 1 3 1 , 4 0 4 2 9 , 8 7 0 2 1 , 9 5 2 C h a r g e s f o r s e r v i c e s 4, 6 7 4 3 , 2 4 0 3 , 3 0 1 2 , 2 2 7 2 , 4 2 3 2 , 2 2 8 2 , 4 9 8 2 , 4 3 3 2 , 5 1 5 2 , 6 1 4 U s e o f m o n e y a n d p r o p e r t y 9 9 7 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 , 4 7 9 1 , 7 6 8 M i s c e l l a n e o u s 2, 5 5 8 4 , 3 7 7 4 , 1 2 1 4 , 1 7 6 3 , 8 5 8 3 , 9 7 7 5 , 3 0 2 4 , 7 8 4 7 , 7 4 9 5 , 7 5 0 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 5 3 , 3 4 9 $ 5 7 , 5 7 6 $ 6 2 , 2 5 4 $ 6 3 , 1 5 6 $ 6 7 , 4 2 3 $ 6 8 , 2 8 0 $ 7 9 , 8 2 2 $ 1 0 0 , 5 7 4 $ 1 0 2 , 4 1 2 $ 9 5 , 0 4 0 $ Ex p e n d i t u r e s C u r r e n t P u b l i c s a f e t y 13 , 1 1 5 $ 1 4 , 0 2 5 $ 1 4 , 6 0 1 $ 1 5 , 8 1 9 $ 1 6 , 4 1 2 $ 1 8 , 7 0 5 $ 1 8 , 7 5 2 $ 1 9 , 1 0 8 $ 1 8 , 7 1 7 $ 2 0 , 0 9 1 $ P u b l i c w o r k s 8, 1 4 9 9 , 1 5 6 9 , 6 9 8 1 0 , 3 5 1 1 2 , 4 5 2 1 2 , 1 0 8 1 2 , 4 0 5 1 3 , 3 1 1 1 4 , 7 6 6 1 5 , 4 6 2 C u l t u r e a n d r e c r e a t i o n 8 , 0 6 1 9 , 3 9 2 9 , 1 8 3 1 0 , 1 2 2 1 0 , 2 6 1 1 0 , 7 0 3 1 0 , 8 4 9 1 1 , 2 6 6 1 2 , 4 9 8 1 3 , 0 7 5 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 3 , 7 1 5 3 , 4 8 6 6 , 3 7 5 4 , 6 9 8 3 , 4 4 5 4 , 4 3 7 8 , 0 3 7 1 0 , 5 2 0 8 , 8 7 8 8 , 0 3 7 G e n e r a l g o v e r n m e n t 5, 8 8 7 6 , 0 8 0 6 , 2 8 2 6 , 5 1 0 7 , 1 9 4 7 , 2 0 7 7 , 3 0 0 7 , 1 9 1 7 , 6 9 5 7 , 5 5 3 D e b t s e r v i c e P r i n c i p a l 4, 7 4 2 5 , 1 7 2 9 , 3 4 9 6 , 0 9 9 6 , 7 0 0 7 , 3 2 3 8 , 4 1 8 9 , 3 5 4 1 0 , 3 8 6 1 3 , 2 9 4 I n t e r e s t 3, 6 8 3 3 , 3 3 6 3 , 6 7 6 3 , 4 5 8 3 , 4 6 4 3 , 5 5 6 3 , 3 6 4 3 , 0 6 4 2 , 8 8 9 2 , 5 4 3 C a p i t a l p r o j e c t s 20 , 0 9 5 1 6 , 0 6 5 1 3 , 9 3 9 1 5 , 1 5 3 1 3 , 0 0 0 1 1 , 8 1 1 1 7 , 0 9 6 1 7 , 6 9 0 2 1 , 8 7 3 1 6 , 0 0 6 T o t a l e x p e n d i t u r e s 6 7 , 4 4 7 $ 6 6 , 7 1 2 $ 7 3 , 1 0 3 $ 7 2 , 2 1 0 $ 7 2 , 9 2 8 $ 7 5 , 8 5 0 $ 8 6 , 2 2 1 $ 9 1 , 5 0 4 $ 9 7 , 7 0 2 $ 9 6 , 0 6 1 $ E x c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s ( 1 4 , 0 9 8 ) $ ( 9 , 1 3 6 ) $ ( 1 0 , 8 4 9 ) $ ( 9 , 0 5 4 ) $ ( 5 , 5 0 5 ) $ ( 7 , 5 7 0 ) $ ( 6 , 3 9 9 ) $ 9 , 0 7 0 $ 4 , 7 1 0 $ ( 1 , 0 2 1 ) $ 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 1 0 , 6 0 0 $ 1 2 , 8 7 5 $ 7 , 0 2 0 $ 7 , 2 6 5 $ 8 , 8 7 0 $ 9 , 1 5 0 $ 3 0 , 0 3 5 $ - $ 1 6 , 1 6 5 $ 9 , 6 9 0 $ 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 - 3 8 4 4 0 6 1 0 9 4 7 0 1 1 1 5 5 4 2 2 2 8 4 5 3 , 6 1 9 I n s u r a n c e R e c o v e r i e s - - - - - - - 2 0 5 9 4 5 3 I s s u a n c e o f n o t e p a y a b l e - - 2 1 1 - - - - - - P r e m i u m ( d i s c o u n t ) o n i s s u a n c e o f b o n d s 9 3 ( 1 9 ) 4 3 2 9 - 1 6 5 5 2 - 3 9 4 1 6 5 P a y m e n t o f r e f u n d e d b o n d s ( 6 , 4 1 5 ) - 0 - - - ( 2 3 , 1 4 0 ) - ( 1 1 , 0 8 5 ) T r a n s f e r s i n 15 , 1 7 2 1 4 , 6 1 4 1 5 , 7 7 6 2 1 , 6 2 7 2 1 , 5 5 2 2 5 , 4 1 3 1 6 , 4 8 6 1 6 , 7 4 2 1 8 , 6 5 8 1 9 , 4 9 9 T r a n s f e r s o u t (1 4 , 5 5 4 ) ( 1 6 , 7 3 3 ) ( 1 5 , 2 3 7 ) ( 2 1 , 5 4 0 ) ( 2 0 , 7 1 1 ) ( 2 3 , 3 2 8 ) ( 1 6 , 3 8 6 ) ( 1 7 , 4 4 6 ) ( 2 2 , 7 2 2 ) ( 2 3 , 1 8 1 ) T o t a l o t h e r f i n a n c i n g s o u r c e s ( u s e s ) 4 , 89 6 $ 1 1 , 1 2 1 $ 8 , 2 1 9 $ 7 , 4 9 0 $ 1 0 , 1 8 1 $ 1 1 , 3 6 2 $ 8 , 1 0 1 $ ( 4 6 2 ) $ 1 3 , 7 7 9 $ 9 , 8 4 5 $ N e t c h a n g e i n f u n d b a l a n c e s ( 9 , 2 0 2 ) $ 1 , 9 8 5 $ ( 2 , 6 3 0 ) $ ( 1 , 5 6 4 ) $ 4 , 6 7 6 $ 3 , 7 9 2 $ 1 , 7 0 2 $ 8 , 6 0 8 $ 1 8 , 4 8 9 $ 8 , 8 2 4 $ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 17 . 0 % 1 6 . 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 % Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N F U N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t 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 ) 115 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 To t a l 20 0 3 3 1 , 9 6 6 5 , 1 0 3 5 5 9 - - 3 7 , 6 2 8 20 0 4 3 4 , 9 5 8 5 , 3 1 1 5 8 0 - - 4 0 , 8 4 9 20 0 5 3 6 , 0 7 6 5 , 2 6 9 6 1 1 - - 4 1 , 9 5 6 20 0 6 3 8 , 3 3 6 5 , 3 0 3 6 7 4 - - 4 4 , 3 1 3 20 0 7 4 2 , 2 2 1 5 , 3 0 5 6 8 3 - - 4 8 , 2 0 9 20 0 8 4 4 , 1 0 1 5 , 4 3 2 7 3 4 - - 5 0 , 2 6 7 20 0 9 4 7 , 8 6 1 5 , 2 5 4 7 1 3 - - 5 3 , 8 2 8 20 1 0 5 0 , 2 5 6 5 , 5 2 5 6 9 9 8 , 1 4 1 4 7 6 4 , 6 6 8 20 1 1 4 8 , 8 3 1 6 , 0 6 8 7 7 6 8 , 9 1 2 8 6 8 6 5 , 4 5 5 20 1 2 5 1 , 3 7 4 6 , 3 9 4 8 1 1 8 , 6 4 4 8 2 2 6 8 , 0 4 5 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 an 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 ) 116 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 ) Fi s c a l Ex e m p t To t a l T a x a b l e V a l u e T o t a l Ye a r E n d e d C o m m e r c i a l , I n d u s t i a l P r o p e r t y T o t a l T a x a b l e a s a P e r c e n t a g e D i r e c t Ju n e 3 0 Re s i d e n t i a l & U t i l i t e s As s e s s e d V a l u e 2 As s e s s e d V a l u e Va l u e 3 of A s s e s s e d V a l u e Ta x R a t e 20 0 3 1, 9 3 2 , 8 2 2 97 4 , 5 1 9 41 , 2 6 3 2, 9 4 8 , 6 0 4 1, 9 0 5 , 2 6 6 64 . 6 2 16 . 8 1 3 20 0 4 1, 9 8 5 , 6 8 6 97 4 , 5 9 2 49 , 2 0 7 3, 0 0 9 , 4 8 5 1, 9 4 5 , 7 7 8 64 . 6 5 17 . 5 9 6 20 0 5 2, 1 5 4 , 8 0 1 1, 0 3 8 , 4 0 2 49 , 2 3 9 3, 2 4 2 , 4 4 2 2, 0 2 7 , 3 1 1 62 . 5 2 17 . 3 1 4 20 0 6 2, 2 3 6 , 6 1 0 1, 0 5 7 , 5 7 3 46 , 3 1 8 3, 3 4 0 , 5 0 1 2, 0 7 9 , 9 4 4 62 . 2 6 17 . 7 2 9 20 0 7 2, 6 4 4 , 7 7 0 1, 2 1 3 , 8 0 2 46 , 1 0 3 3, 9 0 4 , 6 7 5 2, 3 2 0 , 2 9 4 59 . 4 2 17 . 3 0 2 20 0 8 2, 7 3 3 , 0 4 6 1, 1 9 7 , 2 0 3 44 , 9 6 6 3, 9 7 5 , 2 1 5 2, 3 8 4 , 8 9 1 59 . 9 9 17 . 2 9 7 20 0 9 3, 0 1 1 , 8 0 3 1, 2 5 3 , 6 4 1 47 , 9 9 2 4, 3 1 3 , 4 3 6 2, 5 2 0 , 7 6 3 58 . 4 4 17 . 7 1 7 20 1 0 3, 0 8 9 , 8 1 6 1, 2 7 2 , 2 5 0 48 , 4 8 1 4, 4 1 0 , 5 4 7 2, 6 3 2 , 3 9 5 59 . 6 8 17 . 8 5 3 20 1 1 3, 1 2 3 , 3 9 8 1, 2 9 4 , 5 2 2 49 , 5 7 2 4, 4 6 7 , 4 9 2 2, 7 1 0 , 1 1 8 60 . 6 6 17 . 8 5 3 20 1 2 3, 1 8 3 , 1 6 0 1, 3 0 4 , 9 7 9 51 , 5 0 1 4, 5 3 9 , 6 4 0 2, 7 9 8 , 2 6 2 61 . 6 4 17 . 2 6 9 So u r c e s : 1 Ci t y o f I o w a C i t y B u d g e t B o o k 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 Ci t y o f I o w a C i t y B u d g e t B o o k 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 er 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 ot 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 . Ex e m p t p r o p e r t y i n c l u d e s a l l p r o p e r t y t h a t i s o w n e d b y re l i g i o u s a n d e d u c a t i o n a l i n s t i t u t i o n s , c h a r i t a b l e a n d b e n e v o l e n t t a x a b l e p r o p e r t y . P r o p e r t y o w n e d b y g o v e r n me n t a l e n t i t i e s is n o t t a x a b l e a n d i s n o t i n c l u d e d i n “ E x e m p t P r o p e r t y" . 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 . T a x a b l e P r o p e r t y A s s e s s e d V a l u e 1 117 (p e r $ 1 , 0 0 0 a s s e s s e d v a l u a t i o n ) To t a l Io w a C i t y K i r k w o o d D i r e c t & Fi s c a l O p e r a t i n g D e b t S e r v i c e T o t a l C i t y J o h n s o n S c h o o l Co m m u n i t y S t a t e o f O v e r l a p p i n g Ye a r Mi l l a g e Mi l l a g e Mi l l a g e Co u n t y 1 Di s t r i c t Co l l e g e Io w a Ra t e s 20 0 3 1 2 . 6 5 2 4 . 1 6 1 1 6 . 8 1 3 6 . 0 6 1 1 2 . 2 1 0 0 . 6 6 6 0 . 0 0 4 3 5 . 7 5 4 20 0 4 1 3 . 0 2 6 4 . 5 7 0 1 7 . 5 9 6 6 . 1 0 2 1 2 . 8 6 5 0 . 6 7 9 0 . 0 0 4 3 7 . 2 4 7 20 0 5 1 3 . 3 6 0 3 . 9 5 4 1 7 . 3 1 4 6 . 1 6 6 1 2 . 8 7 5 0 . 6 6 8 0 . 0 0 4 3 7 . 0 2 7 20 0 6 1 3 . 5 8 0 4 . 1 4 9 1 7 . 7 2 9 6 . 3 9 1 1 3 . 5 8 2 0 . 6 4 9 0 . 0 0 4 3 8 . 3 5 5 20 0 7 1 3 . 4 2 3 3 . 8 7 9 1 7 . 3 0 2 6 . 4 1 5 1 3 . 6 3 2 0 . 8 7 2 0 . 0 0 4 3 8 . 2 2 5 20 0 8 1 3 . 5 1 1 3 . 7 8 6 1 7 . 2 9 7 7 . 8 0 3 1 4 . 1 9 2 0 . 8 5 2 0 . 0 0 4 4 0 . 1 4 8 20 0 9 1 3 . 4 9 8 4 . 2 1 9 1 7 . 7 1 7 7 . 7 0 8 1 4 . 1 9 1 0 . 8 4 0 0 . 0 0 3 4 0 . 4 5 9 20 1 0 1 3 . 3 1 9 4 . 4 3 8 1 7 . 7 5 7 7 . 5 4 0 1 4 . 6 9 0 0 . 9 2 6 0 . 0 0 3 4 0 . 9 1 6 20 1 1 1 3 . 1 9 3 4 . 6 4 9 1 7 . 8 4 2 7 . 3 2 0 1 4 . 5 9 0 0 . 9 9 9 0 . 0 0 3 4 0 . 7 5 4 20 1 2 1 2 . 8 2 6 4 . 4 4 3 1 7 . 2 6 9 7 . 0 7 5 1 4 . 0 7 3 1 . 0 7 9 0 . 0 0 3 3 9 . 4 9 9 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 . 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 EN T S La s t T e n F i s c a l Y e a r s 118 Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections 1 Collections 2003 31,975 31,863 99.6 16 31,879 99.7 2004 34,073 34,009 99.8 23 34,032 99.9 2005 34,403 34,814 101.2 15 34,829 101.2 2006 36,460 36,654 100.5 44 36,698 100.7 2007 39,094 38,947 99.6 13 38,960 99.7 2008 39,973 39,768 99.5 70 39,838 99.7 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 49,590 49,543 99.9 1 49,544 99.9 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) 119 % o f T o t a l % o f T o t a l Ta x a b l e A s s e s s e d T a x a b l e A s s e s s e d Te n l a r g e s t t a x p a y e r s 1 Ty p e o f B u s i n e s s Va l u a t i o n Ra n k Va l u a t i o n Va l u a t i o n Ra n k Va l u a t i o n AC T I n c . ( f o r m e r l y A m e r i c a n C o l l e g e T e s t i n g P r o g r a m ) E d u c a t i o n a l T e s t i n g S e r v i c e 1 9 , 1 0 2 $ 3 0 . 5 7 % 47 , 9 8 5 $ 1 1 . 0 6 % 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 4 5 , 0 1 3 1 1 . 3 3 4 4 , 3 0 1 2 0 . 9 8 Ru s s e l l G e r d i n Tr u c k i n g C o m p a n y - - N / A 2 0 , 9 6 8 3 0 . 4 6 So u t h g a t e D e v e l o p m e n t C o m p a n y R e a l E s t a t e D e v e l o p e r 1 6, 7 7 4 4 0 . 5 0 1 8 , 2 7 3 4 0 . 4 0 ME H S M L C ( S y c a m o r e M a l l ) S h o p p i n g C e n t e r 1 0 , 1 6 8 1 0 0 . 3 0 1 6 , 3 7 5 5 0 . 3 6 Al p h a I n c In d u s t r i a l - - N / A 1 6 , 0 8 3 6 0 . 3 5 Pr o c t o r & G a m b l e L L C M a n u f a c t u r i n g C o m p a n y 1 5 , 9 4 4 5 0 . 4 7 1 5 , 0 8 6 7 0 . 3 3 NC S P e a r s o n I n f o r m a t i o n S e r v i c e s 1 5 , 3 6 0 6 0 . 4 6 1 4 , 4 1 0 8 0 . 3 2 Un i t e d N a t u r a l F o o d s W h o l e s a l e D i s t r i b u t i o n C o m p a n y - - N / A 1 2 , 9 0 3 9 0 . 2 8 CC A : H a w k R i d g e D r L L C L o d g e A p t s A p a r t m e n t s - - N / A 1 2 , 0 5 2 1 0 0 . 2 7 Ja m e A a n d L o r r e t t a C l a r k A p a r t m e n t s 25 , 6 9 3 2 0 . 7 6 - - N / A Ol d C a p i t o l M a l l A s s o c i a t e s L P O l d C a p i t o l M a l l T o w n C e n t e r - - N / A - - N / A Hy - V e e Gr o c e r y S t o r e s 13 , 3 4 1 7 0 . 4 0 - - N / A Sh e r a t o n H o t e l H o t e l 12 , 1 1 3 9 0 . 3 6 - - N / A 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 , 1 6 2 8 0 . 3 6 - - N / A To t a l 18 5 , 6 7 0 $ 5. 5 0 % 21 8 , 4 3 6 $ 4. 8 1 % 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 0 A n n u a l R ep o r t 2 St a t e D e p a r t m e n t o f R e v e n u e 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 ) 20 1 2 20 0 3 120 121 Cu s t o m e r N a m e Ch a r g e s Ra n k Pe r c e n t a g e Ch a r g e s Ra n k Pe r c e n t a g e Pr o c t o r & G a m b l e 66 6 , 5 5 5 $ 1 7 . 1 6 % 5 8 9 , 5 8 3 $ 1 7 . 4 1 % Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r 1 5 0 , 1 1 2 2 1 . 6 1 1 0 8 , 0 1 8 2 1 . 3 6 Me r c y H o s p i t a l 10 8 , 6 7 6 5 1 . 1 7 7 1 , 5 4 4 3 0 . 9 0 Ru s P r o p e r t y M a n a g e m e n t / L a k e s i d e M a n o r 1 1 4 , 7 8 0 3 1 . 2 3 7 0 , 1 7 3 4 0 . 8 8 Ca m p u s A p a r t m e n t s 80 , 8 0 8 6 0 . 8 7 6 2 , 1 5 9 5 0 . 7 8 Ma r k I V A p t s 55 , 9 4 3 1 0 0 . 6 0 5 9 , 4 0 4 6 0 . 7 5 Un i v e r s i t y o f I o w a / M a y f l o w e r A p a r t m e n t s 6 4 , 0 4 6 8 0 . 6 9 4 4 , 7 9 4 7 0 . 5 6 AC T - - N / A 3 8 , 8 1 9 8 0 . 4 9 Se v i l l e A p t s - - N / A 3 3 , 5 0 5 9 0 . 4 2 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 3 2 , 2 4 6 1 0 0 . 4 1 Ro b e r t s D a i r y 62 , 7 9 9 9 0 . 6 7 - - N / A Le a r C o r p 10 9 , 1 2 6 4 1 . 1 7 - - N / A Un i v e r s i t y o f I o w a 79 , 4 9 5 7 0 . 8 5 - - N / A 1, 4 9 2 , 3 4 0 $ 16 . 0 3 % 1, 1 1 0 , 2 4 5 $ 13 . 9 6 % To t a l W a t e r S y s t e m C h a r g e s 9 , 3 0 8 , 8 2 4 $ 7, 9 5 3 , 7 3 8 $ 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 20 0 3 f o r m C i t y o f I o w a R e v e n u e D e p t 20 1 2 20 0 3 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 122 Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2003 257,788,030 9,308,824 2004 253,454,012 8,850,608 2005 254,560,239 8,315,719 2006 267,107,998 8,844,993 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 2010 234,342,825 7,568,378 2011 236,838,370 7,661,898 2012 246,618,257 7,953,738 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years 123 Cu s t o m e r N a m e Ch a r g e s Ra n k Pe r c e n t a g e Ch a r g e s Ra n k Pe r c e n t a g e Un i v e r s i t y o f I o w a 2, 1 6 1 , 5 3 1 1 1 7 . 9 9 % 2, 1 2 7 , 6 5 9 $ 1 1 6 . 6 4 % Pr o c t o r & G a m b l e 1, 4 7 9 , 3 4 7 2 1 2 . 3 1 1 , 0 5 1 , 7 4 2 2 8 . 2 3 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 5 2 , 4 9 6 5 1 . 2 7 1 6 9 , 3 9 9 3 1 . 3 3 Me r c y H o s p i t a l 11 3 , 7 5 1 7 0 . 9 5 1 2 2 , 4 4 1 4 0 . 9 6 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 1 2 0 , 1 3 8 5 0 . 9 4 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 ) 1 5 2 , 5 0 2 4 1 . 2 7 1 1 9 , 5 0 5 6 0 . 9 3 Ma r k I V A p a r t m e n t s - - N / A 8 5 , 0 5 5 7 0 . 6 7 Ca m p u s A p a r t m e n t s 83 , 8 0 3 9 0 . 7 0 8 4 , 3 8 6 8 0 . 6 6 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 8 6 , 6 9 9 8 0 . 7 2 7 9 , 0 6 2 9 0. 6 2 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 ) 6 7 , 5 6 6 1 0 0 . 5 6 5 6 , 0 9 2 1 0 0 . 4 4 Ro b e r t s D a i r y 12 6 , 2 3 3 6 1 . 0 5 - - N / A Le a r C o r p 15 4 , 1 5 2 3 1 . 2 8 - - N / A 4, 5 7 8 , 0 8 0 $ 38 . 1 0 % 4, 0 1 5 , 4 7 9 $ 31 . 4 1 % To t a l S e w e r S y s t e m C h a r g e s 1 2 , 0 1 5 , 1 2 2 $ 12 , 7 8 4 , 3 2 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 Ap r i l 2 0 0 2 S e w e r R e v e n u e B o n d T r a n s c r i p t O f f i c i a l S ta t e m e n t 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 n o t a v a i l a b l e f o r 20 0 3 , s o u s e d i n f o r m a t i o n f r o m 2 0 0 2 t o b e a b l e t o p ro v i d e c o m p a r a t i v e i n f o r m a t 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 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 20 1 2 20 0 3 124 Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2003 297,084,229 12,015,122 2004 294,683,685 12,482,393 2005 297,714,953 12,557,646 2006 302,925,357 12,373,762 2007 315,199,203 11,084,369 2008 285,492,596 12,221,769 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 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years 125 Ge n e r a l C a p i t a l G e n e r a l T o t a l P e r c e n t a g e Fi s c a l O b l i g a t i o n L o a n O b l i g a t i o n R e v e n u e P r i m a r y o f P e r s on a l P e r Ye a r 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 Ca p i t a 2 20 0 3 7 1 , 7 2 6 , 8 5 7 $ - $ 1 1 , 2 7 3 , 9 8 7 $ 1 1 9 , 1 5 4 , 1 4 0 $ 2 0 2 , 1 5 4 , 9 8 4 $ 4 . 7 7 % 3 , 2 4 1 $ 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 . 4 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 1 0 9 , 9 1 8 , 2 3 9 1 9 5 , 4 3 7 , 6 4 0 4 . 1 6 % 3 , 1 3 3 20 0 6 7 8 , 2 8 6 , 8 0 1 2 1 1 , 0 0 0 6 , 8 1 3 , 8 2 8 1 0 4 , 9 7 5 , 2 8 8 1 9 0 , 2 8 6 , 9 1 7 3 . 7 6 % 3 , 0 2 6 20 0 7 8 0 , 4 4 1 , 8 9 4 2 1 1 , 0 0 0 5 , 4 5 8 , 6 3 3 9 9 , 8 9 2 , 3 3 7 1 8 6 , 0 0 3 , 8 6 4 3 . 4 2 % 2 , 7 7 4 20 0 8 8 2 , 2 6 8 , 5 3 2 2 1 1 , 0 0 0 4 , 8 8 5 , 7 1 0 9 4 , 5 4 9 , 3 8 6 1 8 1 , 9 1 4 , 6 2 8 3 . 1 8 % 2 , 6 8 2 20 0 9 8 1 , 2 2 2 , 5 3 3 2 1 1 , 0 0 0 4 , 3 1 7 , 7 8 7 8 7 , 8 7 5 , 8 5 5 1 7 3 , 6 2 7 , 1 7 5 3 . 0 0 % 2 , 5 1 3 20 1 0 7 1 , 7 9 1 , 7 3 7 2 1 1 , 0 0 0 3 , 7 3 1 , 1 6 7 7 9 , 2 8 1 , 8 8 8 1 5 5 , 0 1 5 , 7 9 2 2 . 5 6 % 2 , 2 8 4 20 1 1 7 7 , 7 4 3 , 9 5 7 2 1 1 , 0 0 0 3 , 1 3 0 , 8 4 9 7 5 , 8 5 7 , 3 0 6 1 5 6 , 9 4 3 , 1 1 2 2 . 4 9 % 2 , 2 7 6 20 1 2 7 4 , 2 2 5 , 6 5 4 2 1 1 , 0 0 0 1 , 4 8 3 , 4 7 3 6 9 , 0 5 9 , 3 0 7 1 4 4 , 9 7 9 , 4 3 4 2 . 1 9 % 2 , 1 0 3 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 ts . 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 fo u n d o n p a g e 1 3 6 . Go v e r n m e n t a l A c t i v i t i e s B u s i n e s s - T y p e A c t i v i t i e s CI T Y O F I O W A C I T Y , I O W A RA T I O S O F O U T S T A N D I N G D E B T B Y T Y P E La s t T e n F i s c a l Y e a r s 126 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 D e 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 vi 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 As s e s s e d V a l u e Pe r C a p i t a 3 20 0 3 2 , 9 4 8 , 6 0 4 $ 7 1 , 7 2 7 $ 1 1 , 2 7 4 $ 8 3 , 0 0 1 $ 4 , 4 4 8 $ 7 8 , 5 5 3 $ 2 6 . 6 4 : 1 0 0 0 1 , 2 5 9 $ 20 0 4 3 , 0 0 9 , 4 8 5 7 9 , 4 0 3 9 , 5 6 2 8 8 , 9 6 5 6 , 9 3 0 8 2 , 0 3 5 2 7 . 2 6 : 1 0 0 0 1 , 3 1 5 20 0 5 3 , 2 4 2 , 4 4 2 7 7 , 1 0 5 8 , 2 0 3 8 5 , 3 0 8 3 , 0 6 7 8 2 , 2 4 1 2 5 . 3 6 : 1 0 0 0 1 , 3 1 8 20 0 6 3 , 3 4 0 , 5 0 1 7 8 , 2 8 7 6 , 8 1 4 8 5 , 1 0 1 2 , 7 2 5 8 2 , 3 7 6 2 4 . 6 6 : 1 0 0 0 1 , 3 1 0 20 0 7 3 , 9 0 4 , 6 7 5 8 0 , 4 4 2 5 , 4 5 9 8 5 , 9 0 1 4 , 2 8 9 8 1 , 6 1 2 2 0 . 9 0 : 1 0 0 0 1 , 2 1 7 20 0 8 3 , 9 7 5 , 2 1 5 8 2 , 2 6 8 4 , 8 8 6 8 7 , 1 5 4 8 , 6 9 1 7 8 , 4 6 3 1 9 . 7 4 : 1 0 0 0 1 , 1 5 7 20 0 9 4 , 3 1 3 , 4 3 6 8 1 , 2 2 2 4 , 3 1 8 8 5 , 5 4 0 1 1 , 7 5 9 7 3 , 7 8 1 1 7 . 1 0 : 1 0 0 0 1 , 0 6 8 20 1 0 4 , 4 1 0 , 5 4 7 7 1 , 7 9 2 3 , 7 3 1 7 5 , 5 2 3 1 3 , 9 5 2 6 1 , 5 7 1 1 3 . 9 6 : 1 0 0 0 9 0 7 20 1 1 4 , 4 6 7 , 4 9 2 7 7 , 7 4 4 3 , 1 3 1 8 0 , 8 7 5 1 3 , 1 5 1 6 7 , 7 2 4 1 5 . 1 6 : 1 0 0 0 9 8 2 20 1 2 4 , 5 3 9 , 6 4 0 7 4 , 2 2 6 1 , 4 8 3 7 5 , 7 0 9 1 1 , 0 0 9 6 4 , 7 0 0 1 4 . 2 5 : 1 0 0 0 9 3 8 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 nd 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 3 6 . 127 CITY OF IOWA CITY, IOWA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES 1 Last Ten Fiscal Years (amounts expressed in thousands) Total General Fiscal Year Governmental Ratio of Debt Ended Total Expenditures Service to General June 30 Principal Interest Debt Service and Transfers Expenditures 2003 4,742 $ 3,683 $ 8,425 $ 82,001 $ .10 : 1.00 2004 5,172 3,336 8,508 83,445 .10 : 1.00 2005 9,349 3,676 13,025 88,342 .15 : 1.00 2006 6,099 3,458 9,557 93,360 .10 : 1.00 2007 6,700 3,464 10,164 93,639 .11 : 1.00 2008 7,323 3,556 10,879 99,178 .11 : 1.00 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 Notes: 1 General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. 128 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2012 (amounts expressed in thousands, except per capita) Amount Total General % Applicable Applicable Long-Term to the to the Name of Direct Debt City of City of Governmental Unit Outstanding Iowa City Iowa City Per Capita City of Iowa City 75,920 $ 100.00% 75,920 $ 1,101.137497 $ Iowa City Community School District 17,990 59.07% 10,627 154.1344675 Total 93,910 $ 86,547 $ 1,255 $ Per capita assessed value 65,842 $ 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. 129 20 0 3 2 0 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 De b t L i m i t 1 4 5 , 4 8 2 $ 1 4 8 , 1 2 5 $ 1 5 9 , 7 5 9 $ 1 6 4 , 7 9 9 $ 1 9 0 , 7 6 9 $ 1 9 6 , 5 8 9 $ 2 1 3 , 3 5 0 $ 2 1 8 , 9 7 4 $ 2 2 2 , 6 5 5 $ 2 2 6 , 9 8 2 $ 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 3 , 0 0 0 8 8 , 9 8 5 8 5 , 2 9 0 8 5 , 0 6 0 8 5 , 8 4 0 8 7 , 0 9 0 8 4 , 9 9 5 7 5 , 0 5 0 8 0 , 5 7 5 7 5 , 3 2 0 Le g a l d e b t m a r g i n 6 2 , 4 8 2 $ 5 9 , 1 4 0 $ 7 4 , 4 6 9 $ 7 9 , 7 3 9 $ 1 0 4 , 9 2 9 $ 1 0 9 , 4 9 9 $ 1 2 8 , 3 5 5 $ 1 4 3 , 9 2 4 $ 1 4 2 , 0 8 0 $ 1 5 1 , 6 6 2 $ 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 5 7 . 0 5 % 6 0 . 0 7 % 5 3 . 3 9 % 5 1 . 6 1 % 4 5 . 0 0 % 4 4 . 3 0 % 3 9 . 84 % 3 4 . 2 7 % 3 6 . 1 9 % 3 3 . 1 8 % 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 2 2 6 , 9 8 2 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 7 5 , 3 2 0 Le g a l D e b t M a r g i n No t e : U n d e r I o w a c o d e , t h e c i t y ' s o u t s t a n d i n g g e n e r a l o b li 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 as s e s s e d p r o p e r t y v a l u e . 15 1 , 6 6 2 $ 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 2 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, 5 3 9 , 6 4 0 $ Fi s c a l Y e a r 130 Fi s c a l Ye a r P r i n c i p a l I n t e r e s t T o t a l Pr o p e r t y T a x Re v e n u e Ta x I n c r e m e n t Fi n a n c i n g W a t e r R e v e n u e Pr i n c i p a l Ou t s t a n d i n g a t Be g i n n i n g o f Fi s c a l Y e a r 20 1 2 1 14 , 9 4 5 , 0 0 0 $ 3 , 1 8 8 , 9 7 9 $ 1 8 , 1 3 3 , 9 7 9 $ 1 5 , 1 6 7 , 9 6 1 $ 6 6 8 , 9 7 8 $ 1 , 7 7 0 , 4 6 5 $ 8 0 , 5 7 5 , 0 0 0 $ 20 1 3 1 1 , 5 6 0 , 0 0 0 2 , 3 5 6 , 1 2 4 1 3 , 9 1 6 , 1 2 4 1 2 , 8 8 9 , 2 6 3 6 6 6 , 4 0 3 3 6 0 , 4 5 8 7 5 , 3 2 0 , 0 0 0 20 1 4 1 0 , 9 8 0 , 0 0 0 2 , 0 4 0 , 4 7 0 1 3 , 0 2 0 , 4 7 0 1 2 , 0 0 8 , 0 3 0 6 6 8 , 1 1 5 3 4 4 , 3 2 5 6 3 , 7 6 0 , 0 0 0 20 1 5 1 0 , 8 6 0 , 0 0 0 1 , 7 0 6 , 1 6 5 1 2 , 5 6 6 , 1 6 5 1 1 , 5 6 4 , 0 6 2 6 6 8 , 8 7 8 3 3 3 , 2 2 5 5 2 , 7 8 0 , 0 0 0 20 1 6 1 0 , 3 2 0 , 0 0 0 1 , 3 6 4 , 8 7 0 1 1 , 6 8 4 , 8 7 0 1 0 , 6 9 4 , 0 5 5 6 7 3 , 6 9 0 3 1 7 , 1 2 5 4 1 , 9 2 0 , 0 0 0 20 1 7 8 , 7 4 5 , 0 0 0 1 , 0 3 5 , 9 7 7 9 , 7 8 0 , 9 7 7 8 , 7 9 7 , 8 2 5 6 7 7 , 0 9 0 3 0 6 , 0 6 2 3 1 , 6 0 0 , 0 0 0 20 1 8 7 , 6 2 0 , 0 0 0 7 6 5 , 4 7 8 8 , 3 8 5 , 4 7 8 7 , 7 0 6 , 5 4 4 6 7 8 , 9 3 4 - 2 2 , 8 5 5 , 0 0 0 20 1 9 5 , 1 6 0 , 0 0 0 5 1 5 , 3 0 3 5 , 6 7 5 , 3 0 3 4 , 9 9 5 , 8 6 9 6 7 9 , 4 3 4 - 1 5 , 2 3 5 , 0 0 0 20 2 0 4 , 5 4 5 , 0 0 0 3 5 0 , 2 2 7 4 , 8 9 5 , 2 2 7 4 , 2 1 2 , 0 4 3 6 8 3 , 1 8 4 - 1 0 , 0 7 5 , 0 0 0 20 2 1 3 , 2 4 0 , 0 0 0 2 0 2 , 5 7 1 3 , 4 4 2 , 5 7 1 2 , 7 5 2 , 8 3 1 6 8 9 , 7 4 0 - 5 , 5 3 0 , 0 0 0 20 2 2 1 , 6 3 0 , 0 0 0 9 1 , 3 7 7 1 , 7 2 1 , 3 7 7 1 , 0 2 7 , 6 1 2 6 9 3 , 7 6 5 - 2 , 2 9 0 , 0 0 0 20 2 3 6 6 0 , 0 0 0 3 5 , 6 4 0 6 9 5 , 6 4 0 - 6 9 5 , 6 4 0 - 6 6 0 , 0 0 0 To t a l 9 0 , 2 6 5 , 0 0 0 $ 1 3 , 6 5 3 , 1 8 1 $ 1 0 3 , 9 1 8 , 1 8 1 $ 9 1 , 8 1 6 , 0 9 5 $ 8 , 1 4 3 , 8 5 1 $ 3 , 4 3 1 , 6 6 0 $ No t e s : 1 Ad d i t i o n a l p r i n c i p a l a n d i n t e r e s t p a y m e n t s a b o v e t h e f u n d i n g s o u r c e s f o r 2 0 1 2 w e r e f u n d e d t h r o u g h t h e re f u n d i n g o f b o n d s i s s u e d J u n e 2 0 1 1 . 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 131 Fiscal Year Net Revenue Annual Debt Service 2 Ended Available for Ratio of June 30 Revenue Expenses 1 Debt Service Principal Interest Total Coverage Parking Revenue 3 2003 4,198 $ 1,953 $ 2,245 $ 375 $ 715 $ 1,090 $ 2.06 2004 4,164 2,319 1,845 395 687 1,082 1.71 2005 4,360 2,377 1,983 305 663 968 2.05 2006 4,161 2,380 1,781 320 645 965 1.85 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 2010 6 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 Wastewater Treatment Revenue 4 2003 13,000 $ 4,463 $ 8,537 $ 3,060 $ 4,385 $ 7,445 $ 1.15 2004 12,947 4,523 8,424 3,280 3,672 6,952 1.21 2005 12,600 4,432 8,168 3,630 3,537 7,167 1.14 2006 12,798 4,260 8,538 3,815 3,390 7,205 1.19 2007 13,708 4,236 9,472 3,905 3,234 7,139 1.33 2008 6 13,332 4,581 8,751 4,105 3,071 7,176 1.22 2009 6 13,462 5,202 8,260 4,260 2,813 7,073 1.17 2010 6 13,174 5,050 8,124 4,205 2,307 6,512 1.25 2011 6 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 Water Revenue 5 2003 10,241 $ 4,361 $ 5,880 $ 500 $ 1,088 $ 1,588 $ 3.70 2004 10,627 4,360 6,267 925 1,427 2,352 2.66 2005 9,287 4,783 4,504 845 1,340 2,185 2.06 2006 9,918 5,722 4,196 880 1,305 2,185 1.92 2007 9,220 5,356 3,864 915 1,268 2,183 1.77 2008 6 9,258 5,348 3,910 955 1,229 2,184 1.79 2009 6 8,833 5,726 3,107 995 1,171 2,166 1.43 2010 6 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 2012 6 8,649 5,653 2,996 1,200 861 2,061 1.45 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) 132 Fi s c a l Ye a r P r i n c i p a l I n t e r e s t T o t a l S e w e r R e v e n u e P a r k i n g R e v e nu e W a t e r R e v e n u e Pr i n c i p a l Ou t s t a n d i n g a t Be g i n n i n g o f F i s c a l Ye a r 20 1 2 1 11 , 7 3 0 , 0 0 0 $ 2 , 8 9 3 , 6 0 9 $ 1 4 , 6 2 3 , 6 0 9 $ 6 , 3 0 8 , 0 0 0 $ 8 3 9 , 2 0 0 $ 2 , 0 6 1 , 4 0 9 $ 7 4 , 9 6 5 , 0 0 0 $ 20 1 3 6 , 2 2 5 , 0 0 0 2 , 6 2 8 , 3 9 2 8 , 8 5 3 , 3 9 2 6 , 4 1 1 , 8 8 8 8 3 8 , 9 7 5 1 , 6 0 2 , 5 2 9 6 8 , 1 8 5 , 0 0 0 20 1 4 5 , 1 1 5 , 0 0 0 2 , 3 7 6 , 9 2 7 7 , 4 9 1 , 9 2 7 4 , 6 6 8 , 6 8 1 8 3 8 , 3 0 0 1 , 9 8 4 , 9 4 6 6 1 , 9 6 0 , 0 0 0 20 1 5 5 , 2 9 0 , 0 0 0 2 , 2 0 6 , 6 6 5 7 , 4 9 6 , 6 6 5 4 , 6 7 4 , 9 0 0 8 3 2 , 2 5 0 1 , 9 8 9 , 5 1 5 5 6 , 8 4 5 , 0 0 0 20 1 6 5 , 5 0 0 , 0 0 0 2 , 0 1 5 , 2 8 4 7 , 5 1 5 , 2 8 4 4 , 6 9 5 , 1 1 9 8 3 2 , 9 5 0 1 , 9 8 7 , 2 1 5 5 1 , 5 5 5 , 0 0 0 20 1 7 5 , 6 7 0 , 0 0 0 1 , 8 0 7 , 6 7 1 7 , 4 7 7 , 6 7 1 4 , 6 5 9 , 5 7 5 8 3 0 , 1 5 0 1 , 9 8 7 , 9 4 6 4 6 , 0 5 5 , 0 0 0 20 1 8 5 , 9 0 0 , 0 0 0 1 , 5 8 8 , 9 2 8 7 , 4 8 8 , 9 2 8 4 , 6 6 1 , 5 7 5 8 3 1 , 4 5 0 1 , 9 9 5 , 9 0 3 4 0 , 3 8 5 , 0 0 0 20 1 9 6 , 1 0 5 , 0 0 0 1 , 3 5 9 , 7 6 5 7 , 4 6 4 , 7 6 5 4 , 6 4 6 , 4 0 0 8 2 6 , 8 5 0 1 , 9 9 1 , 5 1 5 3 4 , 4 8 5 , 0 0 0 20 2 0 6 , 3 6 0 , 0 0 0 1 , 1 0 7 , 9 1 6 7 , 4 6 7 , 9 1 6 4 , 6 4 7 , 4 6 3 8 2 6 , 3 5 0 1 , 9 9 4 , 1 0 3 2 8 , 3 8 0 , 0 0 0 20 2 1 6 , 1 0 0 , 0 0 0 8 4 4 , 4 8 4 6 , 9 4 4 , 4 8 4 4 , 1 1 8 , 0 1 3 8 2 8 , 9 0 0 1 , 9 9 7 , 5 7 1 2 2 , 0 2 0 , 0 0 0 20 2 2 4 , 9 3 0 , 0 0 0 6 0 8 , 5 3 8 5 , 5 3 8 , 5 3 8 2 , 7 1 7 , 2 8 8 8 2 4 , 4 6 9 1 , 9 9 6 , 7 8 1 1 5 , 9 2 0 , 0 0 0 20 2 3 3 , 7 6 0 , 0 0 0 4 2 1 , 8 8 3 4 , 1 8 1 , 8 8 3 1 , 3 6 1 , 2 5 0 8 2 3 , 8 6 9 1 , 9 9 6 , 7 6 4 1 0 , 9 9 0 , 0 0 0 20 2 4 2 , 7 9 5 , 0 0 0 2 7 6 , 0 9 7 3 , 0 7 1 , 0 9 7 7 9 3 , 2 5 0 8 2 4 , 0 0 0 1 , 4 5 3 , 8 4 7 7 , 2 3 0 , 0 0 0 20 2 5 2 , 8 2 5 , 0 0 0 1 4 3 , 1 0 6 2 , 9 6 8 , 1 0 6 7 9 7 , 2 5 0 7 1 2 , 3 7 5 1 , 4 5 8 , 4 8 1 4 , 4 3 5 , 0 0 0 20 2 6 1 , 6 1 0 , 0 0 0 3 8 , 1 6 3 1 , 6 4 8 , 1 6 3 7 9 4 , 3 7 5 - 8 5 3 , 7 8 8 1 , 6 1 0 , 0 0 0 To t a l 7 9 , 9 1 5 , 0 0 0 $ 2 0 , 3 1 7 , 4 2 8 $ 1 0 0 , 2 3 2 , 4 2 8 $ 5 5 , 9 5 5 , 0 2 7 $ 1 1 , 5 1 0 , 0 8 8 $ 2 7 , 3 5 2 , 3 1 3 $ No t e s : 1 Ad d i t i o n a l p r i n c i p a l p a y m e n t s a b o v e t h e f u n d i n g s o u rc e s f o r 2 0 1 2 w e r e f u n d e d t h r o u g h t h e r e f u n d i n g o f bo n d s i s s u e d J u n e 2 0 1 2 . 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 ) 133 Fiscal Year Principal Interest Total 2012 500,000 $ 339,200 $ 839,200 $ 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 8,690,000 $ 2,820,088 $ 11,510,088 $ Fiscal Year Principal Interest Total 2012 4,615,000 $ 1,693,000 $ 6,308,000 $ 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 44,685,000 $ 11,270,027 $ 55,955,027 $ (continued) CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Parking Outstanding Sewer Outstanding 134 Fiscal Year Principal Interest Total 2012 1 1,200,000 $ 861,409 $ 2,061,409 $ 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 21,125,000 $ 6,227,313 $ 27,352,313 $ Notes: 1Amounts for Principal excludes called revenue bonds. Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Water 135 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 S c h o o l R e 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 3 6 2 , 3 8 0 4 , 2 3 8 , 8 8 1 3 0 , 6 1 6 1 . 4 4 % 1 1 , 7 0 0 3 . 5 7 7 6 , 6 9 3 , 4 4 0 20 0 4 6 2 , 3 8 0 4 , 5 5 6 , 5 7 8 3 2 , 3 7 2 5 . 7 4 % 1 1 , 8 8 5 4 . 0 8 5 4 , 1 5 6 , 4 4 2 20 0 5 6 2 , 3 8 0 4 , 7 0 2 , 8 7 5 3 3 , 0 6 6 2 . 1 4 % 1 1 , 8 6 6 2 . 9 8 7 8 , 0 0 9 , 1 7 1 20 0 6 6 2 , 8 8 7 5 , 0 5 4 , 9 0 3 3 5 , 0 3 8 5 . 9 6 % 1 1 , 9 8 8 2 . 4 9 0 1 , 4 8 1 , 0 6 6 20 0 7 6 7 , 0 6 2 5 , 4 4 0 , 9 6 6 3 7 , 3 2 5 6 . 5 3 % 1 2 , 8 2 4 2 . 9 9 3 4 , 9 7 1 , 4 2 8 20 0 8 6 7 , 8 3 1 5 , 7 1 6 , 3 6 4 3 8 , 8 9 2 4 . 2 0 % 1 2 , 9 1 1 3 . 1 9 5 8 , 5 0 9 , 7 2 9 20 0 9 6 9 , 0 8 6 5 , 7 8 3 , 6 9 9 3 8 , 2 9 9 - 1 . 5 2 % 1 3 , 0 4 9 4 . 3 9 0 5 , 1 3 9 , 4 6 1 20 1 0 5 67 , 8 6 2 6 , 0 4 3 , 6 9 5 3 9 , 3 0 5 2 . 6 3 % 1 3 , 3 1 9 5 . 0 7 2 5 , 3 2 9 , 7 2 3 20 1 1 5 68 , 9 4 7 6 , 3 1 4 , 0 8 6 4 0 , 6 3 7 3 . 3 9 % 1 3 , 6 3 8 4 . 8 7 4 1 , 4 0 7 , 0 2 1 20 1 2 68 , 9 4 7 6 , 6 0 7 , 8 4 1 4 2 , 0 1 4 3 . 3 9 % 1 3 , 8 6 2 4 . 1 7 6 7 , 1 2 2 , 5 5 5 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 on 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 ou 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 te 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 Re 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 20 1 0 a n d 2 0 1 1 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 3 136 Em p l o y e r s Em p l o y e e s Ra n k Em p l o y e e s Ra n k Pe r c e n t a g e Un i v e r s i t y o f I o w a 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 an d C l i n i c s 2 2 , 3 1 9 1 3 0 , 8 0 4 1 3 4 . 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, 6 0 0 2 1 , 7 0 0 2 1 . 9 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, 3 0 0 3 1 , 5 6 2 3 1 . 7 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 , 1 0 0 6 1 , 2 4 3 4 1 . 4 Ci t y o f I o w a C i t y 62 7 1 0 1 , 2 1 6 5 1 . 4 Me r c y H o s p i t a l 1, 1 5 0 5 1 , 2 0 8 6 1 . 3 NC S P e a r s o n 1, 1 9 4 4 1 , 2 0 0 7 1 . 3 Hy - V e e 92 7 8 1 , 1 6 6 8 1 . 3 Sy s t e m U n l i m i t e d N/ A N / A 8 9 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 or p 9 3 0 7 7 8 5 1 0 0 . 9 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 ) 80 0 9 - - N / A 31 , 9 4 7 41 , 7 7 4 46 . 4 % To t a l E m p l o y e e s 90 , 0 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 3 ; p e r c e n t a g e o f t o t a l c i t y e m p l o y m e n t b y e m p l o y e r i s n o t p r e s e n t e d . 20 1 2 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 3 137 2003 2004 2005 2006 2007 2008 2009 Public Safety Police 97.25 97.25 94.25 94.25 96.25 96.25 103.25 Fire 58 58 56 57 57 57 57 Animal Shelter 6 6 6 6 6 6 6 Inspection Services 14.13 14.13 13.88 14.88 14.88 15.38 15.55 Public Works Public Works Admin 2 2 2 2 2 2 2 Engineering 13.6 13.6 11.6 11.6 11.6 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 15.17 15.42 15.42 15.42 Parks 13 13 12 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 41.25 43.25 42.63 42.63 42.89 43.14 43.14 Senior Center 5.81 5.81 6.31 6.31 6.31 6.31 6.31 Community and Economic Development 8.35 9.45 8.45 8.45 8.45 8.95 9.05 General Government City Council 7 7 7 7 7 7 7 City Manager 3 3 3 3 3 3 3 City Clerk 4 4 4 4 4 4 4 City Attorney 6.6 6.6 6.6 6.6 6.6 6.6 6 Tort Liabiltiy, Insurance - - - - - - 1 Personnel 4 4 4 4 4 4 4 Finance 28.61 28.61 26.61 26.75 26.75 26.5 25.3 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 0.5 0.25 0.25 Human Rights 2.5 2.5 2.5 2.5 2.5 2.5 2.5 Transit 48.5 48.5 50.5 50.5 50.5 54.75 58.5 Special Revenue Employee Benefits 0.34 0.34 0.34 0.39 0.39 0.29 0.29 CIP / Roads 7 7 3 2 2 1 2 Flood Mitigation Grants - - - - - - - Community Development 5.45 5.35 4.35 4.35 4.35 3.98 3.88 Traffic Engineering 5.65 5.65 5.65 4.15 4.15 4.15 4.15 Streets 22 22 22 23.5 23.5 23.5 25.5 MPOJC (formerly JCCOG) 6.1 6.1 6.1 6.6 6.6 6.6 6.6 Library Development 1.5 1.5 0.8 1 1 1 1 Capital Project Administration - - - - - - - Internal Service Funds Information Technology 7.5 7.5 8 11.75 12 12.3 12.3 Equipment 11.25 11.26 11.25 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 1.33 1.32 1.38 1.38 1.73 1.93 Business-Type Activities Parking 31.5 31.5 32.75 32.75 32.75 32.75 33.25 Wastewater Treatment 26.3 27.3 27.3 25.5 25.5 25.5 25.6 Water 30.7 31.7 31.7 32.5 32 32.75 32.75 Sanitation 32.35 32.35 34.35 33.85 33.85 34.85 34.85 Airport 2 2 2 1.6 1.6 1.6 1.75 Cable Television 6.19 6.19 6.19 6.19 6.19 6.19 6.44 Stormwater - - - 0.5 1 2 1.9 Housing Authority 12.5 12.5 12.75 13.25 13.25 13.25 13.25 Total 605.64 610.65 599.56 605.37 608.13 614.81 629.03 Source: City's Financial Plans. CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-Time Equivalent Employees as of June 30 138 2010 2011 2012 103.25 98 97 57 66 65 6 6 6 15.55 15.55 15.55 2 2 2 11.35 12.1 12.1 - 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 43.14 43.64 6.31 6.31 6.5 9.05 9.1 9.1 7 7 7 3 3 3 4 4 4 6 5.6 5.6 1 1 1 4 4 4 25.3 25.24 26.53 4.96 4.96 4.83 0.25 - - 2.5 2.5 2.5 58.5 56.25 56.25 0.29 0.26 0.55 2 - - - 1.6 1.6 3.88 3.83 3.83 4.15 4.15 4.15 25.5 25.5 25.5 6.6 6.6 6.6 1 1 1 - 3 5 12.3 11.3 11.8 11.26 11.26 11.26 0.75 0.75 0.75 1.93 2.01 1.8 33.25 32.75 32.75 25.6 25.6 25.4 32.75 32.75 32.75 35.85 35.85 37.85 1.75 1.75 1.75 6.44 6.69 6.63 1.9 1.9 2.1 13.25 13.25 13.25 630.03 633.37 637.74 139 20 0 3 2 0 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 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 8, 0 1 6 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 4 , 5 3 5 T r a f f i c V i o l a t i o n s 7 , 4 2 8 8 , 5 1 5 7 , 4 2 8 8 , 1 9 8 6 , 6 8 4 5 , 8 27 4 , 4 6 0 4 , 4 4 6 3 , 4 0 3 2 , 9 4 2 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 4 6 3 , 5 1 8 3 , 5 9 6 3 , 6 7 9 4 , 13 6 4 , 2 5 7 4 , 1 5 2 4 , 4 7 2 4 , 6 3 5 4 , 0 1 7 I n s p e c t i o n s c o n d u c t e d 9 3 6 9 7 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 , 3 2 3 Pa r k i n g P a r k i n g V i o l a t i o n s 1 8 6 , 6 7 4 1 5 5 , 3 3 8 1 4 5 , 0 3 3 1 3 9 , 3 3 8 16 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 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, 5 3 0 , 0 0 0 4 , 9 6 0 , 0 0 0 4 , 8 7 0 , 0 0 0 4 , 5 8 0 , 0 0 0 9 , 4 3 0 , 0 0 0 1 2 , 8 1 0 ,0 0 0 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 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 00 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 1 , 0 0 0, 0 0 0 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 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 2 0 , 7 0 8 2 1 , 1 6 5 2 1 ,5 5 2 2 2 , 0 4 6 2 2 , 4 8 1 2 2 , 9 0 9 2 3 , 1 6 1 2 3 , 3 4 4 2 3 , 5 2 7 2 3 , 5 2 9 Wa t e r D a i l y a v e r a g e c o n s u m p t i o n i n g a l l o n s 6 , 0 3 4 , 0 0 0 5 ,7 4 2 , 0 0 0 5 , 4 4 8 , 5 0 0 5 , 6 8 0 , 6 0 0 5 , 5 1 6 , 2 3 8 5 , 4 7 5 , 1 2 2 5 , 5 0 8 , 0 77 5 , 4 8 3 , 2 5 5 5 , 5 0 8 , 8 0 0 5 , 4 8 6 , 8 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 00 , 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 20 , 9 9 2 2 1 , 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 , 87 5 2 4 , 0 8 6 C o m m e r c i a l 1, 3 5 8 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 I n d u s t r i a l 12 1 3 1 3 1 3 1 3 1 4 1 5 1 5 1 5 1 5 O t h e r 12 7 1 2 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 T o t a l C u s t o m e r s 2 2 , 4 8 9 2 3 , 0 4 2 2 3 , 5 1 4 2 4 , 0 8 4 2 4 , 5 7 1 2 4 ,7 1 4 2 5 , 0 4 4 2 5 , 3 0 6 2 5 , 5 4 4 2 5 , 7 9 0 Sa n i t a t i o n N u m b e r o f C u s t o m e r s 1 3 , 8 0 6 1 3 , 9 8 3 1 4 , 1 5 8 1 4 , 3 7 1 1 4 , 55 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 T o n n a g e 8, 0 6 2 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 L a n d f i l l T o n n a g e 10 3 , 5 8 5 1 0 8 , 1 5 5 1 1 3 , 3 5 6 1 1 1 , 1 2 4 1 3 5 , 3 1 5 1 3 2 , 7 6 0 1 4 0 , 8 1 0 1 5 0, 3 6 9 1 4 7 , 2 6 5 1 4 8 , 9 5 3 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 1 f i g u re s a r e c o m p i l e d t h r o u g h 1 0 / 1 0 / 1 2 . 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 1 f i g u r es a r e c o m p i l e d t h r o u g h 1 0 / 1 0 / 1 2 f o r i n s p e c t i o n a n d 1 0 / 0 1 / 1 2 f o r c a l l s . 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 rt 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 140 141 20 0 3 2 0 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 Pu b l i c S a f e t y P o l i c e S t a t i o n s 1 1 1 1 1 1 1 1 1 1 P a t r o l u n i t s 1 7 1 7 1 7 1 7 1 7 1 7 1 7 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 3 4 F i r e a p p a r a t u s 8 8 8 8 8 9 9 9 9 1 1 Pu b l i c W o r k s S t r e e t s M i l e s 25 6 2 5 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 S t r e e t l i g h t s 2 , 9 1 9 3 , 3 5 2 3 , 3 5 7 3 , 3 7 8 3 , 3 9 5 3 , 4 0 3 3 , 4 08 3 , 4 1 0 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 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 P a r k s 50 6 1 6 1 6 1 6 1 6 1 6 1 4 0 4 1 4 1 A c r e a g e 1 , 3 2 2 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 35 4 1 4 4 1 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 2 9 2 9 2 9 2 9 2 9 3 1 3 0 3 0 3 0 3 0 T e n n i s c o u r t s 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 S o c c e r f i e l d s 2 5 2 5 2 5 2 5 2 5 2 5 2 0 2 0 2 0 2 0 (c o n t i n u e d ) CI T Y O F I O W A C I T Y , I O W A CA P I T A L A S S E T S B Y F U N C T I O N La s t T e n F i s c a l Y e a r s 142 20 0 3 2 0 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 Pa r k i n g F a c i l i t i e s 4 4 4 5 5 5 5 5 5 5 S p a c e s 2 , 5 3 7 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 Wa s t e w a t e r T r e a t m e n t M i l e s o f s a n i t a r y s e w e r 2 6 9 2 7 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 M i l e s o f s t o r m s e w e r 9 8 1 0 2 1 0 5 1 1 0 1 1 7 1 1 8 1 2 0 1 2 2 1 2 4 12 7 N u m b e r o f t r e a t m e n t p l a n t s 2 2 2 2 2 2 2 2 2 2 N u m b e r o f s e r v i c e c o n n e c t o r s 2 0 , 7 0 8 2 1 , 1 6 5 2 1 , 5 5 2 22 , 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 Wa t e r M i l e s o f w a t e r m a i n s 2 4 5 2 4 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 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 , 2 4 3 2 , 3 4 0 2 , 44 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 Sa n i t a t i o n L a n d f i l l s 1 1 1 1 1 1 1 1 1 1 A c r e a g e 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 3 9 5 3 9 5 3 9 5 3 9 5 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 CA P I T A L A S S E T S B Y F U N C T I O N ( c o n t i n u e d ) La s t T e n F i s c a l Y e a r s 143 144 145 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 the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2012, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 12, 2012. 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. Internal Control Over Financial Reporting Management of the City is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting. 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. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 146 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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, 2012, are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City of Iowa City, Iowa, and are reported in Part II 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. This report is intended solely for the information and use of management, City Council, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 12, 2012 147 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Compliance We have audited the compliance of the City of Iowa City, Iowa, 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, 2012. The City’s major federal programs are identified in the summary of the independent auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit. 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 types of 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. Our audit does not provide a legal determination of the City’s compliance with those requirements. 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, 2012. 148 Internal Control Over Compliance Management of the City of Iowa City, Iowa, is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance 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 type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. 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 over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management, City Council, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 12, 2012 149 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 Federal CFDA Federal Numbe r Ex penditures U.S. De partment of Commerce: Direct pro gram: Economic Ad justment Assistance 11.307 712,207 $ Economic Ad justment Assistance 11.307 201,603 Total U.S. De partment of Commerce 913,810 U.S. De partment of Housin g and Urban Develo pment: Direct pro gram: Communit y Develo pment Block Grants/ Entitlement Grants 14.218 1,971,911 Communit y Develo pment Block Grants/ Entitlement Grants 14.218 422,435 2,394,346 Pass-throu gh pro gram from: Iowa Economic Development Authority: Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRHB-225 4,476,374 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRH-210 994,235 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRI-271 314,568 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRI-273 231,995 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRIEF-276 213,222 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRB-204 167,163 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRMH-215 162,702 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRIEF-274 151,038 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRIEF-275 IC 83,542 Grantor/Program Pass-Through Number Entity Identifying 150 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 Federal CFDA Federal Numbe r Ex penditures U.S. De partment of Housin g and Urban Develo pment: (continued ) Pass-throu gh pro gram from: (continued ) Iowa Economic Development Authority: (continued) Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRPG-226 50,000 $ Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRMI-007 33,179 Communit y Develo pment Block Grants/ State's Pro gram and Non-Entitlemen t Grants in Hawaii 14.228 08-DRH-010 2,984 6,881,002 Direct pro gram: Home Investment Partnershi ps Pro gra m 14.239 387,802 Home Investment Partnershi ps Pro gra m 14.239 259,262 Home Investment Partnershi ps Pro gra m 14.239 167,530 Home Investment Partnershi ps Pro gra m 14.239 49,713 864,307 Public and Indian Housin g 14.850 142,826 Section 8 Housin g Choice Vouchers 14.871 6,485,269 Public housin g funds cluster: Public Housin g Ca pital Fund 14.872 136,967 Public Housin g Ca pital Fund 14.872 4,507 Public Housin g Ca pital Fund 14.872 396 141,870 ARRA - Public Housin g Ca pital Fund Stimulus Formula (Recover y Act )14.885 12,394 Total Public Housing Funds Cluste r 154,264 Total U.S. Department of Housing and Urban Development 16,922,014 Pass-Through Entity Identifying Grantor/Program Number 151 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 Federal CFDA Federal Numbe r Ex penditures U.S. De partment of Justice: Pass-throu gh pro gram from: Iowa Department of Justice: Violence A gainst Women Formula Grants 16.588 VW-12-34 43,878 $ Direct pro gram: Bullet proof Vest Partnershi p Pro gra m 16.607 5,231 Pass-throu gh pro gram from: Governor’s Office of Dru g Control Polic y: Public Safet y Partnershi p and Communit y Policin g Grants 16.710 09-Hots pots/Interdiction 24,567 Public Safet y Partnershi p and Communit y Policin g Grants 16.710 10-Hots pots/Interdiction 16,873 41,440 JAG cluster: Direct pro gram: Edward B yrne Memorial Justice Assistance Grant Pro gra m 16.738 25,407 Edward B yrne Memorial Justice Assistance Grant Pro gra m 16.738 6,167 31,574 Pass-throu gh pro gram from: Governor’s Office of Drug Control Policy: ARRA – Recovery Act – Edward B yrne Memorial Justice Assistance Grant (JAG ) Pro gram/Grants to States and Territories 16.803 09JAG-17244 111,934 Direct pro gram: ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 16.804 13,861 Total JAG Pro gram Cluste r 157,369 Total U.S. Department of Justice 247,918 Entity Identifying Pass-Through Grantor/Program Number 152 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 Federal CFDA Federal Numbe r Ex penditures U.S. Department of Transportation: Direct program: Airport Improvement Program 20.106 1,183,480 $ Airport Improvement Program 20.106 167,600 Airport Improvement Program 20.106 11,330 1,362,410 Pass-throu gh pro gram from: Iowa De partment of Trans portation: Hi ghwa y Plannin g and Constructio n 20.205 STP-U-3715 (651 )--70-52 480,000 Hi ghwa y Plannin g and Constructio n 20.205 12MPO-MPOJC 139,843 Hi ghwa y Plannin g and Constructio n 20.205 BRM-3715 (650 )--8N-52 63,288 Hi ghwa y Plannin g and Constructio n 20.205 FHWA IA08-03 978 684,109 Iowa Department of Transportation and Metropolitan Planning Organization of Johnson County: Metro politan Trans portation Plannin g 20.505 12MPO-MPOJC 35,157 Direct pro gram: Federal Transit – Formula Grants 20.507 1,101,703 Federal Transit – Formula Grants 20.507 82,632 Federal Transit – Formula Grants 20.507 37,270 1,221,605 Pass-throu gh pro gram from: Iowa De partment of Trans portation: Transit Services Program Cluster: Capital Assistance Program for Elderl y Persons and Persons with Disabilities 20.513 IA-16-X002-371-12 86,690 Job Access – Reverse Commute 20.516 IA-37-X022-371-12 62,845 Job Access – Reverse Commute 20.516 IA-37-X017-371-11 62,098 124,943 New Freedom Pro gra m 20.521 IA-57-X001-371-12 24,004 Total Transit Services Program Cluste r 235,637 Pass-Through Entity Identifying Grantor/Program Number See Notes to the Schedule of Expenditures of Federal Awards 153 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 Federal CFDA Federal Numbe r Ex penditures U.S. Department of Transportation: (continued) Pass-throu gh pro gram from: (continued ) Iowa Department of Public Safety, Governor's Traffic Safety Bureau: Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 PAP 12-410, Task 41 16,432 $ Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 PAP 11-410, Task 39 5,693 22,125 Total U.S. De partment of Trans portation 3,561,043 U.S. De partment of Ener gy : Pass-throu gh pro gram from: 81.041 SEP09-005 3,600 Direct pro gram: 81.128 379,469 Total U.S. De partment of Ener gy 383,069 U.S. De partment of Homeland Securit y: Pass-throu gh pro gram from: Iowa Homeland Securit y and Emer genc y Mana gement Division: Disaster Grants – Public Assistance (Presidentiall y Declared Disasters )97.036 FEMA-1763 DR-IA 24,699 Hazard Miti gation Grant 97.039 FEMA-DR-1763-0015 01 495,977 Hazard Miti gation Grant 97.039 DR-1763-0137-01 92,396 Hazard Miti gation Grant 97.039 HMGP-DR-1854-0006 01 2,702 591,075 Direct pro gram: Assistance to Firefi ghters Grant 97.044 10,339 Assistance to Firefi ghters Grant 97.044 3,940 14,279 Total U.S. De partment of Homeland Securit y 630,053 Total 22,657,907 $ Pass-Through Entity Identifying Grantor/Program Number 154 City of Iowa City, Iowa Notes to the Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 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 accrual basis of accounting. 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 . Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2 - Subrecipients Of the federal expenditures presented in the schedule, the City of Iowa City, Iowa, provided federal awards to subrecipients as follows: Federal Amount CFDA Provided to Number Subrecipients Community Development Block Grants/Entitlement Grants 14.218 2,094,105 $ Home Investment Partnerships Program 14.239 653,228 Public Safety Partnership and Community Policing Grants 16.710 14,229 Edward Byrne Memorial Justice Assistance Grant Program 16.738 25,407 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories 16.803 53,728 New Freedom Program 20.521 24,004 Program Title 155 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2012 Part I: Summary of the Independent Auditor's Results: Financial Statements Type of auditor’s report issued Unqualified Internal control over financial reporting: Material weakness identified No Significant deficiency None reported Noncompliance material to financial statements noted No Federal Awards Internal control over major programs: Material weakness identified No Significant deficiency None reported Type of auditor’s report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a) No Identification of major programs: CFDA Number Name of Federal Program or Cluster 11.307 Economic Adjustment Assistance 14.228 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.239 Home Investment Partnerships Program 14.871 Section 8 Housing Choice Vouchers JAG Cluster 16.738 Edward Byrne Memorial Justice Assistance Grant Program 16.803 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to States and Territories 16.804 ARRA – Recovery Act – Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 81.128 ARRA - Energy Efficiency and Conservation Block Grant Program (EECBG) 156 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2012 Part I: Summary of the Independent Auditor's Results: (continued) Dollar threshold used to distinguish between Type A and Type B programs $679,737 Auditee qualified as low-risk auditee No Part II: Other Findings Related to Required Statutory Reporting: II-A-12 Certified Budget – Disbursements during the year ended June 30, 2012, did not exceed the amount budgeted. II-B-12 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. II-C-12 Travel Expense – No expenditures of City money for travel expenses of spouses of City officials or employees were noted. II-D-12 Business Transactions – Business transactions between the City and City officials or employees are detailed as follows: Name, Title, and Transaction Business Connection Description Amount Frank Wagner, member of Historic Preservation Commission, owner of Wagner Bros LLC Construction $ 93,279 Matt Neumiller, member of Board of Electrical Service 49,882 Appeals, owner of Neumiller Electric Steve Ford, Spouse of Wendy Ford, Consulting 21,422 Economic Development Coordinator, Services Part owner of Confluence The transactions with Wagner Bros LLC and Neumiller Electric do not appear to represent conflicts of interest since they were entered into through competitive bidding in accordance with Chapter 362.5(3)d of the Code of Iowa. The transaction with Confluence does not appear to represent a conflict of interest since the related party’s ownership is less than 5% in accordance with Chapter 362.5(9) of the Code of Iowa. II-E-12 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. II-F-12 Council Minutes – No transactions were found that we believe should have been approved in the City Council minutes but were not. 157 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2012 Part II: Other Findings Related to Required Statutory Reporting: (continued) II-G-12 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. II-H-12 Revenue Bonds – No instances of non-compliance with the provisions of the City’s revenue bond resolutions were noted.