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HomeMy WebLinkAboutFY2009 Annual Financial Report COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2009 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2009 Page INTRODUCTORY SECTION Table of contents................................................................................................................................ 1 Letter of transmittal............................................................................................................................ 3 City organizational chart.................................................................................................................... 10 City officials....................................................................................................................................... 11 Certificate of Achievement for Excellence in Financial Reporting................................................... 12 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT......................................................................................... 13 MANAGEMENT’S DISCUSSION AND ANALYSIS.................................................................... 15 BASIC FINANCIAL STATEMENTS Government-wide financial statements Statement of net assets................................................................................................................. 26 Statement of activities.................................................................................................................. 28 Fund financial statements Balance sheet – governmental funds............................................................................................ 30 Reconciliation of the balance sheet of the governmental funds to the statement of net assets.... 32 Statement of revenues, expenditures, and changes in fund balances – governmental funds....... 33 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities..................................................................... 35 Statement of net assets – proprietary funds ................................................................................. 36 Statement of revenues, expenses, and changes in fund net assets – proprietary funds................ 39 Statement of cash flows – proprietary funds................................................................................ 40 Statement of fiduciary assets and liabilities................................................................................. 42 Notes to financial statements.......................................................................................................... 43 REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedule – budget and actual – all governmental funds and enterprise ... funds – budgetary basis……………………………………………………………………….... 78 Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 80 Note to required supplementary information – budgetary reporting…………………………….. 81 Schedule of Funding Progress for Health and Dental Plans…………………….………………….. 82 COMBINING AND INDIVIDUAL FUND STATEMENTS Combining balance sheet – nonmajor governmental funds............................................................ 84 Combining statement of revenues, expenditures, and changes in fund balances – nonmajor governmental funds...................................................................................................................... 85 Combining statement of net assets – nonmajor enterprise funds.................................................... 88 Combining statement of revenues, expenses, and changes in fund net assets – nonmajor enterprise funds............................................................................................................................ 89 Combining statement of cash flows – nonmajor enterprise funds.................................................. 90 Combining statement of net assets – internal service funds ........................................................... 92 Combining statement of revenues, expenses, and changes in fund net assets – internal service funds............................................................................................................................................. 93 Combining statement of cash flows – internal service funds.......................................................... 94 Combining statement of changes in assets and liabilities – agency funds...................................... 96 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2009 Page STATISTICAL SECTION (UNAUDITED) Net assets by component.................................................................................................................... 99 Changes in net assets.......................................................................................................................... 100 Fund balances – governmental funds................................................................................................. 102 Changes in fund balances – governmental funds............................................................................... 103 General government tax revenues by source...................................................................................... 104 Assessed and taxable value of property.............................................................................................. 105 Property tax rates – direct and overlapping governments .................................................................. 106 Property tax budgets and collections.................................................................................................. 107 Principal taxpayers............................................................................................................................. 108 Principal water system customers ...................................................................................................... 110 Sales history and total water charges.................................................................................................. 111 Principal sewer system customers...................................................................................................... 112 Sales history and total sewer charges................................................................................................. 113 Ratios of outstanding debt by type..................................................................................................... 114 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita............. 115 Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures..................................................................................................................................... 116 Computation of direct and overlapping debt...................................................................................... 117 Legal debt margin information........................................................................................................... 118 General obligation debt annual maturity schedule............................................................................. 119 Schedule of revenue bond coverage................................................................................................... 120 Revenue debt annual maturity schedule............................................................................................. 121 Revenue debt annual maturity by funding source.............................................................................. 122 Demographic and economic statistics................................................................................................ 124 Principal employers............................................................................................................................ 125 Full-time equivalent city government employees by function........................................................... 126 Operating indicators by function........................................................................................................ 128 Capital assets by function................................................................................................................... 130 COMPLIANCE SECTION Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards .. 133 Report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133................................................ 135 Schedule of expenditures of federal awards....................................................................................... 137 Notes to the schedule of expenditures of federal awards ................................................................... 141 Schedule of findings and questioned costs......................................................................................... 142 2 3 accounting principles used and significant estimates made by management; and evaluating the overall financial statement preparation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Iowa City’s financial statements for the fiscal year ended, June 30, 2009, are fairly presented in conformity with GAAP. The independent auditors’ report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. As a recipient of federal financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to these federal programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management and the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments . The results of the City's single audit for the fiscal year ended June 30, 2009 provided no instances of material weaknesses in the internal controls or significant violations of applicable laws and regulations based upon the audit of the basic financial statements. Information related to this single audit, including the schedules of federal financial assistance, findings and questioned costs, and independent auditors’ reports on the internal accounting and administrative controls and compliance with applicable laws and regulations are included in the compliance section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves a four-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, but three members are nominated from specific districts, and the four other members are nominated at large. The Council elects the Mayor from its own members for a two- year term. The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain and spend its funds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative officer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City’s operating departments and supervises the administration of the City’s personnel system. He supervises 555 full-time and 82 permanent part-time municipal employees and 446 temporary employees, including a police force of 73 sworn personnel and a fire department of 56 firefighters. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate 4 storm and sanitary sewer systems. The City operates a municipal off-street and on-street parking system in the downtown area. Since 1971, the City has operated a transit system. The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than March 15. The appropriated budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City adopts a three-year financial plan that includes both operations and capital improvements. This three-year plan permits a more comprehensive review of the City’s financial condition, allowing analysis of the current and future needs and requirements. During preparation of the plan, careful review is made of property tax levy rates, utility and user fee requirements, ending cash balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a one-year operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control. Encumbrances outstanding at year-end for the governmental fund types are reflected as reservations of the fund balances. Appropriations that are not encumbered lapse at the end of the year. Information Useful in Assessing the Government’s Economic Condition The City's economic strength is based upon education, medical services, and diversified manufacturing. The University of Iowa is the City’s largest employer with almost 28,800 employees and the University of Iowa Hospitals and Clinics is the largest university-owned teaching medical center in the United States. The City also has a significant number of private employers who have a history of providing stable and increasing employment in the community. The relative stability of the University of Iowa, coupled with the City’s multi-sector base of industrial and commercial interests, will continue to help insulate the City from the significant negative economic impacts related to unemployment. The City continues to see sustained production in our major local industries, such as ACT and NCS Pearson. Continued economic development efforts involving the Iowa City and Coralville Chambers of Commerce, local private interests, the University of Iowa and other surrounding communities through participation as members of the Iowa City Area Development Group, have proved positive with the retention and expansion of businesses. In addition, the corridor between Iowa City and Cedar Rapids has been identified as one of the major growth areas for new business development in the State of Iowa. Continued developments within Iowa City and the region have a favorable impact upon the City's economy. There have been budget challenges faced by the State of Iowa; however, the City's economy as a whole continues to grow. The major employers have been able to maintain their workforce size. The unemployment rate for Iowa City continues to remain low at 4.3% for the month of June 2009, as compared to 6.2% for the State of Iowa, and 9.5% for the national average. The City has consistently experienced modest increases in assessed property valuations. The rate of new housing construction slightly decreased in comparison to prior years with 114 new single-family houses and 101 multi-family dwelling units added to the tax rolls for the year ended December 31, 2008. This, along with the low unemployment rate, continues to be indicative of the City's relative economic stability. 5 The 2000 census population of Iowa City was 62,220. Based on the United States Census Bureau, the population was estimated to be 67,831 in 2008; this represents a 9.0% increase. In response to the current national economic recession, the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009, is designed to preserve and create jobs and promote economic recovery, assist people impacted by the recession, provide investments needed to increase economic efficiency, and stabilize state and local government budgets. While Iowa City’s housing market and unemployment has not felt the impact as greatly as other areas of the country, the City has been able to utilize stimulus funds to complete projects and strengthen the local economy. Iowa City has applied for funds totaling $43,663,000 and has been approved for $6,359,000, with another $32,267,000 still pending. These projects vary from resurfacing Highway 218 to reconstructing an airport runway and purchasing 3 new buses. In addition, the State of Iowa’s stimulus program, I-Jobs, is designed to create jobs, strengthen the economy, and build a safer, stronger, greener and smarter Iowa. The City has applied for $14,469,000 in I-Jobs funds and has been approved for $7,762,000, with an additional $6,605,000 pending. These funds will be used for projects including a fourth fire station and UniverCity Neighborhood Partnership, a joint project between the City and the University of Iowa. There are many signs that the City remains healthy and vibrant with great promise for the future. The University of Iowa continues to add new buildings and facilities. The City continues to see sustained production in major local industries. Industrial and commercial interests within the community continue to thrive. Major Initiatives Iowa City continues to deal with the recovery efforts from the flood experienced in 2008. The City of Iowa City was among several cities in Iowa that received a Presidential Disaster declaration, which brought the Federal Emergency Management Agency (FEMA) technical and financial assistance to Iowa City. These on-going efforts include relocation of the North Wastewater Plant, constructing a pump station and stormwater outlets, as well as, flood gates, and rebuilding the City’s Animal Shelter. In addition, the City has received a Hazard Mitigation Grant and Community Development Block Grant to acquire properties in the flood-impacted neighborhoods. The City is currently in the process of developing a general industrial park on the southeast side. This project involves annexing and rezoning 180 acres of land and building the street, water, and sewer infrastructure needed to support industrial businesses. This project is estimated to cost $5,405,000 and will be funded through Tax Increment Financing. This project is scheduled to be completed in phases, with the land being “shovel ready” for industries to build. The City of Iowa City is in the planning process of constructing a mixed-use parking facility adjacent to downtown Iowa City. The mixed-use parking facility will include three components: parking facility consisting of approximately 600 parking spaces, commercial space of approximately 25,000 – 35,000 square feet, and 25 - 75 workforce housing units. The City is hoping to work with a private partner to develop the commercial and housing spaces. As this is still in the planning phase, the cost of this project is unknown, but it is anticipated that the parking facility will be financed with bonds and the commercial and housing space will be funded by the private developer in conjunction with the City. The City anticipates establishing an urban renewal area for the purposes of allowing Tax Increment Financing of the commercial and residential space. 6 Long-term Financial Planning In preparing the financial plan for the three years ending June 30, 2013, the process of budget balancing has been difficult. With the continued tax limitations imposed by the state (specifically the residential rollback factor) and other federal and state regulations and mandates, the municipal service needs for our growing community are becoming increasingly difficult to satisfy. In balancing the budget for the three-year period, the City attempted to maintain service levels, wherever practical. In addition, our planning has been directed at maintaining our current fiscal strength and avoiding any erosion of that fiscal position, including the City’s Aaa bond rating. A continuing major objective in the three-year financial plan is to maintain or increase the City's cash reserve position. In addition, procedures were adopted to allocate unreserved fund balances between the contingency and undesignated fund balances. The contingency fund is available during the fiscal year for unanticipated and unbudgeted expenditures, while the undesignated fund balance is intended to be maintained as working capital. The City is committed to drawing from the undesignated fund balance only in emergency situations. This unreserved fund balance allocation along with specific budgeting techniques has allowed the City to increase or maintain fund balances over the past year. The City continues to pursue cooperative efforts with other local governments. Joint funding, purchasing, planning and other efforts allow the City to meet mandates for new and improved services in the future at the most reasonable cost. Joint cooperation currently encompasses regional transportation planning, human services, solid waste management planning, a hazardous materials response program, an enhanced 911 emergency communications system, community relations, joint operation of an animal control facility and an indoor swimming pool facility, and joint economic development efforts. While such cooperative efforts are not new in concept, the City expects to enter into more agreements with neighboring governmental subdivisions, as well as with the University of Iowa. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2008. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last twenty four consecutive years. I believe our current report continues to conform to the Certificate requirements and am submitting it to GFOA to determine its eligibility for another certificate. Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2009. The City Council, as required by law, is 7 8 9 Ci t i z e n s o f I o w a C i t y Ci t y At t o r n e y Ci t y Ma n a g e r Ma y o r & Ci t y C o u n c i l El e c t e d Of f i c i a l s Ap p o i n t e d By Co u n c i l & M a y o r Ap p o i n t e d by C i t y Ma n a g e r Di r e c t o r / Ma n a g e r Em p l o y e d b y Bo a r d o r Co m m i s s i o n Ci t y Cl e r k Li b r a r y Bo a r d o f Tr u s t e e s Bo a r d s & Co m m i s s i o n s Ai r p o r t Co m m i s s i o n Ai r p o r t Ma n a g e r Li b r a r y Di r e c t o r As s i s t a n t Ci t y Ma n a g e r Fi r e Ch i e f Ho u s i n g & In s p e c t i o n Se r v i c e s Di r e c t o r Fi n a n c e Di r e c t o r Pa r k s & Re c r e a t i o n Di r e c t o r Pl a n n i n g & Co m m u n i t y De v e l o p m e n t Di r e c t o r Po l i c e Ch i e f Pu b l i c W o r k s Di r e c t o r Se n i o r C e n t e r Co o r d i n a t o r Tr a n s p o r t a t i o n Se r v i c e s Di r e c t o r Ke y Br o a d b a n d Te l e c o m m . 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Pa t r o l Re c o r d s & In v e s t i g a t i o n s Ad m i n i s t r a t i o n En e r g y Co n s e r v a t i o n En g i n e e r i n g Eq u i p m e n t Ma i n t e n a n c e La n d f i l l So l i d W a s t e C o l l e c t i o n St o r m w a t e r Ma n a g e m e n t St r e e t s Tr a f f i c E n g i n e e r i n g Wa s t e w a t e r Ma n a g e m e n t Wa t e r Se n i o r C e n t e r fi n a d m / c i t y o r g c h a r t 9 - 0 9 . p d f 10 11 12 www. eidebailly .com 3999 Pennsylvania Ave., Ste. 100 | Dubuque, IA 52002-2273 | T 563.556.1790 | F 563.557.7842 | EOE INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa 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, 2009, 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, 2009, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Subsequent to the issuance of the City’s 2009 financial statements and our report dated December 14, 2009, we became aware that certain testing procedures required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, had not been performed. Upon performing those procedures, a modification was made to our Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133. In our original report we expressed an unqualified opinion on the 2009 financial statements, and our opinion on those financial statements, as expressed herein, remains unqualified. 13 In accordance with Government Auditing Standards , we have also issued our report dated December 14, 2009, 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management’s discussion and analysis and other required supplementary information listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the City of Iowa City, Iowa. 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 basic financial statements of the City of Iowa City, Iowa. 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 (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of the City of Iowa City, Iowa. The combining nonmajor fund financial statements and the Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken 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 express no opinion on them. Dubuque, Iowa December 14, 2009, except for the Schedule of Expenditures of Federal Awards listed in the last paragraph above which is dated May 31, 2012 14 Management’s Discussion and Analysis As management of the City of Iowa City, we present this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2009. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 – 8 of this report. Financial Highlights • The assets of the City of Iowa City exceeded its liabilities at the close of the fiscal year ending June 30, 2009 by $390,477,000 (net assets). Of this amount, $81,780,000 (unrestricted net assets) may be used to meet the government’s ongoing obligations to its citizens and creditors. • The City’s total net assets increased by $23,164,000 during the fiscal year. Governmental activities increased by $15,572,000 and business-type activities increased by $7,592,000. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $42,123,000, an increase of $1,702,000 in comparison with the prior year. Of this total amount, approximately $24,470,000, or 58% was unreserved and is available for spending at the City’s discretion. • At the end of the current fiscal year, the City’s unreserved, undesignated fund balance for the General Fund was $15,362,000, or 33% of total General Fund expenditures. • The City’s total debt decreased by $9,625,000, during the current fiscal year. The key factors to this decrease were the refunding of bonds to take advantage of lower interest rates and the retirement of bonds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net assets presents information on all of the City’s assets and liabilities, with the difference between the two reported as net assets . Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City include Public Safety, Public Works (roads, traffic controls, and transit), Culture and Recreation, Community and Economic Development, General Government, and Interest on long-term debt. The business-type activities of the City include Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water. 15 The government-wide financial statements may be found on pages 26 – 29 of this report. Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements and is typically the basis that is used in developing the next annual budget. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has five major governmental funds: General Fund, Employee Benefits Fund, Community Development Block Grant Fund, Other Shared Revenue and Grants, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as “Other Governmental Funds”. Individual fund data on each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 30 – 35 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business- type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other three non-major enterprise funds are grouped together for reporting purposes and listed under a single heading “Other Enterprise Funds”. Detailed information for each of the non-major funds is provided in the combining statements on pages 88 – 90. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 36 – 41 of this report. 16 17 A portion of the City’s net assets (11.5% or $45,745,000) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets (21.1% or $81,780,000) may be used to meet the government’s ongoing obligations to its citizens and creditors. At the end of the fiscal year ended June 30, 2009, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. Governmental Activities: Governmental activities increased the City’s net assets by $15,572,000. The increase in net assets of governmental activities is primarily due to expenditures for capital assets less depreciation expense. The following is a more detailed review of FY09’s operation. City of Iowa City's Changes in Net Assets (amounts expressed in thousands) Governmental Business-type activities activities Total 2009 2008 2009 2008 2009 2008 Revenues: Program Revenues: Charges for services 6,701 $ 6,379 $ 36,227 $ 34,876 $ 42,928 $ 41,255 $ Operating grants and contributions 8,185 3,611 7,293 6,281 15,478 9,892 Capital grants and contributions 3,773 1,747 3,705 2,798 7,478 4,545 General Revenues: Property taxes 47,085 43,400 - - 47,085 43,400 Road use tax 5,254 5,432 - - 5,254 5,432 Other taxes 1,489 1,435 - - 1,489 1,435 Earnings on investments 3,057 3,932 2,577 3,279 5,634 7,211 Gain on disposal of capital assets - - 360 1,260 360 1,260 Other 4,894 3,509 317 454 5,211 3,963 Total revenues 80,438 69,445 50,479 48,948 130,917 118,393 Expenses: Public safety 20,730 20,504 - - 20,730 20,504 Public works 15,177 13,727 - - 15,177 13,727 Culture and recreation 9,574 13,460 - - 9,574 13,460 Community and economic development 8,726 1,850 - - 8,726 1,850 General government 7,600 7,433 - - 7,600 7,433 Interest on long-term debt 3,264 3,517 - - 3,264 3,517 Wastewater treatment - - 11,925 11,757 11,925 11,757 Water - - 9,185 8,804 9,185 8,804 Sanitation - - 7,296 6,868 7,296 6,868 Housing authority - - 7,238 7,374 7,238 7,374 Parking - - 4,489 3,913 4,489 3,913 Airport - - 693 560 693 560 Stormwater - - 1,223 1,072 1,223 1,072 Cable television - - 633 598 633 598 Total expenses 65,071 60,491 42,682 40,946 107,753 101,437 Change in net assets before transfers 15,367 8,954 7,797 8,002 23,164 16,956 Transfers 205 488 (205) (488) - - Change in net assets 15,572 9,442 7,592 7,514 23,164 16,956 Net assets beginning of year 129,693 120,251 237,620 230,106 367,313 350,357 Net assets end of year 145,265 $ 129,693 $ 245,212 $ 237,620 $ 390,477 $ 367,313 $ 18 Business-type Activities: Business-type activities increased the City’s total assets by $7,592,000. The increases in net assets were primarily in the Wastewater, Sanitation, and Airport funds. For all business-type activities, revenues exceeded expenses by $7,797,000. The graphs on the following pages represent a breakdown of revenue by source and expenditures by program area for governmental and business-type activities. 19 Governmental Activities FY2009 Revenue by Source Grants and Contributions 15% Charges for services 8% Misc. Other 10% Property taxes 59% Other Taxes 8% Business-Type Activities FY2009 Revenue by Source Charges for services 72% Misc. Other 6%Grants and Contributions 22% 20 Governmental Activities FY2009 Expenditures by Program Area (amounts expressed in thousands) Culture and Recreation Public Safety Interest Expense General Govt Community and Econ Dev Public Works 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 Program Area Do l l a r s ( $ ) Business-Type Activities FY2009 Expenditures by Program Area (amounts expressed in thousands) Airport Cable TV Water Parking Housing Authority Stormwater Wastewater Treatment Sanitation 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Program Area Do l l a r s ( $ ) 21 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The financial reporting focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the fiscal year ended June 30, 2009, the City’s governmental funds reported combined ending fund balances of $42,123,000, an increase of $1,702,000 in comparison with the prior year. Of this total amount, $24,470,000 constitutes unreserved fund balance, which is available to use as working capital for the General Fund since property tax revenues are received only twice a year and the remainder is available to meet the future needs of the City . The remainder of the fund balance (41.9%) is reserved to indicate that it is not available for new spending because it has already been committed. This remainder has been committed 1) to liquidate contracts and purchase orders of the prior period ($1,780,000), 2) to fund various debt service payments ($11,759,000), 3) to fund employee retirement commitments ($2,236,000), and 4) restricted by grant agreements ($1,566,000). The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2009, the unreserved fund balance of the General Fund was $15,362,000, while General Fund’s total fund balance was $15,917,000. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 32.5% of total General Fund expenditures ($47,250,000), while total fund balance represents 33.7% of that same amount. The fund balance of the City’s General Fund increased by $983,000 during the current fiscal year . This was due to budget reductions and fee increases in response to the economic conditions. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($1,883,000) as compared to a deficit balance of ($1,595,000) in the prior period. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2010 to cover the capital expenditures. The Debt Service Fund had a fund balance of $11,759,000, an increase of $3,068,000 from the prior year, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). Proprietary Funds : The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The ending net assets of the enterprise funds were $238,102,000, a net asset increase of $7,282,000 . This was primarily due to an increase in unrestricted net assets. Of the enterprise funds’ net assets, $162,211,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $56,732,000, an increase of $7,562,000 compared to the previous year. The Internal Service funds showed net assets totaling $20,401,000 as of June 30, 2009, an increase of $871,000 from the previous year. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, not by fund or fund type. 22 The City had three budget amendments during the fiscal year, which is higher than our common practice of two amendments. These amendments increased the expenditure budget by $132,920,000 to a total of $274,133,000. This represented a 94.1% increase. The major increase was due to capital projects in governmental and business-type funds due to timing of completion of projects and ongoing recovery from the flood of 2008. Capital Assets and Debt Administration Capital Assets: The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2009 amounts to $421,734,000 (net of accumulated depreciation). This investment in capital assets, including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater and water systems, and other infrastructure represents the value of resources utilized to provide services to its citizens. The City’s investment in capital assets for the fiscal year ended June 30, 2009 increased by $10,057,000 for governmental activities compared to the prior year and decreased by $2,629,000 for business- type activities over the prior year. The following table reflects the $421,734,000 investment in capital assets (net of accumulated depreciation). City of Iowa City's Capital Assets (net of depreciation) (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2009 2008 2009 2008 2009 2008 Land 17,483 $ 15,481 $ 25,783 $ 25,921 $ 43,266 $ 41,402 $ Buildings 44,973 43,645 74,866 77,703 119,839 121,348 Improvements other than buildings 3,721 3,736 7,233 7,666 10,954 11,402 Machinery and equipment 12,389 12,420 9,265 10,304 21,654 22,724 Infrastructure 74,458 69,997 131,052 124,641 205,510 194,638 Construction in progress 14,306 11,994 6,205 10,799 20,511 22,793 Total 167,330 $ 157,273 $ 254,404 $ 257,034 $ 421,734 $ 414,307 $ Major capital asset events during the current fiscal year included the following: • Airport projects included runway design, grading, lighting, paving, and runway extension. Projects completed during the year totaled $4,899,000 and projects remaining in construction in progress at fiscal year end totaled $3,243,000. • A variety of street and bridge construction in new residential areas and replacement and expansion of existing infrastructure amounted to $5,180,000. This includes the continuation of the McCollister Boulevard extension project at $4,342,000. • The demolition and reconstruction of fire station #2 at a cost of $1,376,000 in FY09 plus prior year costs, for a total cost of $2,860,000. • Improvements to government buildings at a cost of $1,494,000. Additional information on the City’s capital assets can be found in Note 5 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $172,810,000. Of this amount, $84,995,000 comprises debt backed by the full faith and credit of the City. 23 24 25 Governmental Business-type Activities Activities Total Assets Equity in pooled cash and investments 48,595 $ 50,184 $ 98,779 $ Receivables: Property tax 46,251 - 46,251 Accounts and unbilled usage 1,018 3,301 4,319 Interest 410 851 1,261 Notes 13,748 1,349 15,097 Internal balances (8,596) 8,596 - Due from other governments 7,755 740 8,495 Inventories 536 401 937 Restricted assets: Equity in pooled cash and investments 16,871 33,956 50,827 Capital assets: Land and construction in progress 31,788 31,986 63,774 Other capital assets (net of accumulated depreciation) 135,542 222,418 357,960 Total assets 293,918 353,782 647,700 Liabilities Accounts payable 1,643 785 2,428 Contracts payable 1,026 870 1,896 Accrued liabilities 3,795 437 4,232 Interest payable 248 2,144 2,392 Deposits 982 672 1,654 Due to other governments 2,006 111 2,117 Unearned revenue 55,025 - 55,025 Noncurrent liabilities: Due within one year: Employee vested benefits 1,087 278 1,365 Bonds payable 9,430 5,840 15,270 Due in more than one year: Employee vested benefits 943 232 1,175 Other Post Employment Benefits Obligation 465 202 667 Notes Payable 211 - 211 Bonds payable 71,792 86,353 158,145 Landfill closure/post-closure liability - 10,646 10,646 Total liabilities 148,653 108,570 257,223 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS June 30, 2009 26 Governmental Business-type Activities Activities Total Net Assets Invested in capital assets, net of related debt 100,741 $ 162,211 $ 262,952 $ Restricted for or by: Employee benefits 2,236 - 2,236 Capital projects 10,960 - 10,960 Debt service 11,759 - 11,759 Other purposes 65 - 65 Bond ordinance - 16,125 16,125 State statute - 802 802 Future improvements - 272 272 Grant agreement 1,566 1,960 3,526 Unrestricted 17,938 63,842 81,780 Total net assets 145,265 $ 245,212 $ 390,477 $ The notes to the financial statements are an integral part of this statement. CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS (continued) June 30, 2009 (amounts expressed in thousands) 27 Operating Capital Charges Grants and Grants and Functions/Programs: Expenses for Services Contributions Contributions Governmental activities: Public safety 20,730 $ 2,968 $ 1,723 $ 192 $ Public works 15,177 1,392 1,792 2,328 Culture and recreation 9,574 715 - - Community and economic development 8,726 - 4,670 1,253 General government 7,600 1,626 - - Interest on long-term debt 3,264 - - - Total governmental activities 65,071 6,701 8,185 3,773 Business-type activities: Wastewater Treatment 11,925 12,557 1 266 Water 9,185 8,107 15 132 Sanitation 7,296 8,286 607 - Housing Authority 7,238 181 6,668 - Parking 4,489 5,438 - - Airport 693 248 2 3,239 Stormwater 1,223 622 - 68 Cable television 633 788 - - Total business-type activities 42,682 36,227 7,293 3,705 Total 107,753 $ 42,928 $ 15,478 $ 7,478 $ General revenues: Property taxes, levied for general purposes Road use tax Hotel/motel tax Gas and electric tax Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Total general revenues and transfers Changes in net assets Net assets beginning of year Net assets end of year The notes to the financial statements are an integral part of this statement. Program Revenues CITY OF IOWA CITY, IOWA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2009 (amounts expressed in thousands) 28 Governmental Business-type Activities Activities Total (15,847) $ - $ (15,847) $ (9,665) - (9,665) (8,859) - (8,859) (2,803) - (2,803) (5,974) - (5,974) (3,264) - (3,264) (46,412) - (46,412) - 899 899 - (931) (931) - 1,597 1,597 - (389) (389) - 949 949 - 2,796 2,796 - (533) (533) - 155 155 - 4,543 4,543 (46,412) 4,543 (41,869) 47,085 - 47,085 5,254 - 5,254 713 - 713 776 - 776 3,057 2,577 5,634 - 360 360 4,894 317 5,211 205 (205) - 61,984 3,049 65,033 15,572 7,592 23,164 129,693 237,620 367,313 145,265 $ 245,212 $ 390,477 $ Net (Expense) Revenue and Changes in Net Assets 29 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Assets Equity in pooled cash and investments 16,710 $ 2,092 $ 2$ 925 $ 10,637 $ 1,224 $ 31,590 $ Receivables: Property tax 24,949 9,965 - - 11,308 29 46,251 Accounts and unbilled usage 858 - - - - 160 1,018 Interest 145 17 - 13 65 42 282 Notes 108 - 11,391 622 1,627 - 13,748 Advances to other funds - - 18 - 218 - 236 Due from other governments 2,323 152 18 2,704 - 2,503 7,700 Inventories 204 - - - - - 204 Restricted assets: Equity in pooled cash and investments 2,233 - - 4 - 14,634 16,871 Total assets 47,530 $ 12,226 $ 11,429 $ 4,268 $ 23,855 $ 18,592 $ 117,900 $ (continued) (amounts expressed in thousands) Special Revenue CITY OF IOWA CITY, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2009 30 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Liabilities and Fund Balances Liabilities: Accounts payable 1,006 $ 47 $ 13 $ 149 $ 11 $ 156 $ 1,382 $ Contracts payable - - - - - 1,026 1,026 Accrued liabilities 1,460 2 7 113 - 51 1,633 Advances from other funds 1,504 - - 218 - - 1,722 Due to other governments 2 - - 41 - 1,963 2,006 Deferred revenue 26,663 9,941 11,409 4,463 12,085 2,465 67,026 Liabilities payable from restricted assets: Deposits 978 - - 4 - - 982 Total liabilities 31,613 9,990 11,429 4,988 12,096 5,661 75,777 Fund balances: Reserved for: Inventories 204 - - - - - 204 Encumbrances 243 - - 9 - 1,528 1,780 Debt service - - - - 11,759 - 11,759 Employee retirement commitments - 2,236 - - - - 2,236 Perpetual care 108 - - - - - 108 Restricted by grant agreement - - - 1,566 - - 1,566 Unreserved Undesignated: General fund 15,362 - - - - - 15,362 Special revenue funds - - - (2,295) - 443 (1,852) Capital projects funds - - - - - 10,960 10,960 Total fund balances 15,917 2,236 - (720) 11,759 12,931 42,123 Total liabilities and fund balances 47,530 $ 12,226 $ 11,429 $ 4,268 $ 23,855 $ 18,592 $ 117,900 $ The notes to the financial statements are an integral part of this statement. CITY OF IOWA CITY, IOWA Special Revenue BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2009 (amounts expressed in thousands) 31 Total governmental fund balances 42,123$ Amounts reported for governmental activities in the statement of net assets are different because: Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 20,401 Prepaid insurance benefits future periods and is included in governmental activities in the statement of net assets. - Other long-term assets are not available to pay for current period expenditures and therefore are deferred in the funds: Notes receivable - Earned but unavailable 12,001 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 161,920 Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. (1,912) Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds. (477) Bonds payable are not due and payable in the current period and therefore are not reported in the funds. (81,222) Notes payable are not due and payable in the current period and therefore are not reported in the funds. (211) Accrued interest on bonds (248) Internal balance due to integration of internal service funds (7,110) Total net assets of governmental activities 145,265$ 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, 2009 32 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Revenues Taxes 24,731 $ 9,069 $ -$ -$ 11,084 $ 3,688 $ 48,572 $ Licenses and permits 1,284 - - - - - 1,284 Intergovernmental 5,761 - 1,386 9,801 - 2,573 19,521 Charges for services 2,237 200 - 61 - - 2,498 Use of money and property 1,817 - - 81 447 300 2,645 Miscellaneous 4,468 5 284 75 383 87 5,302 Total revenues 40,298 9,274 1,670 10,018 11,914 6,648 79,822 Expenditures Current: Public safety 17,956 249 - - - 547 18,752 Public works 6,497 - - 4,768 - 1,140 12,405 Culture and recreation 10,644 - - - - 205 10,849 Community and economic development 1,082 - 1,612 3,659 - 1,684 8,037 General government 6,846 306 - - 75 73 7,300 Debt service: Principal - - - - 8,418 - 8,418 Interest - - - - 3,364 - 3,364 Capital outlay 4,225 - 16 3,369 - 9,486 17,096 Total expenditures 47,250 555 1,628 11,796 11,857 13,135 86,221 Excess (deficiency) of revenues over (under) expenditures (6,952) 8,719 42 (1,778) 57 (6,487) (6,399) Other Financing Sources (Uses) Issuance of debt - - - - - 7,190 7,190 Issuance of refunding debt - - - - 22,845 - 22,845 Sale of capital assets 194 - - - - 360 554 Premium on issuance of bonds - - - - 393 159 552 Payment of refunded bonds - - - - (23,140) - (23,140) Transfers in 8,660 - - 434 2,913 4,479 16,486 Transfers out (919) (8,224) (50) (1,497) - (5,696) (16,386) Total other financing sources and (uses) 7,935 (8,224) (50) (1,063) 3,011 6,492 8,101 Net change in fund balances 983 495 (8) (2,841) 3,068 5 1,702 Fund Balances, Beginning 14,934 1,741 8 2,121 8,691 12,926 40,421 Fund Balances, Ending 15,917 $ 2,236 $ -$ (720) $ 11,759 $ 12,931 $ 42,123 $ 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, 2009 (amounts expressed in thousands) 33 34 Net change in fund balances - total governmental funds 1,702 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets 16,879 $ Capital assets contributed 204 Depreciation expense (5,488) 11,595 Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets. Debt issued (30,035) Premium on bonds issued (552) Repayments of debt 31,558 Amortization of premium 75 1,046 The issuance of notes payable are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing notes increases long-term liabilities and does not affect the statement of activities. - Because some revenues will not be collected for several months after the City's year end, they are not considered available revenues and are deferred in the governmental funds. 2,584 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Change in accrued compensated absences (53) Change in accrued post employment benefit obligations (477) Change in accrued interest on debt 25 Impairment of capital assets (179) In the statement of activities, only the gain on the sale of the capital assets is recognized, whereas in the governmental funds, the proceeds from the sale increased financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital asset sold. (1,223) Prepaid items in the governmental funds have been recorded as expenditures when paid. However, the statement of activities will report these items as expenses in the period that the corresponding net asset is exhausted. (9) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 561 Change in net assets of governmental activities 15,572 $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) For the Year Ended June 30, 2009 CITY OF IOWA CITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 35 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Assets Current assets: Equity in pooled cash and investments 4,511 $ 11,704 $ 12,132 $ 15,845 $ 3,409 $ 2,583 $ 50,184 $ 17,005 $ Receivables: Accounts and unbilled usage 35 1,255 805 957 5 244 3,301 - Interest 93 188 290 207 54 19 851 128 Notes - - - 5 1,344 - 1,349 - Advances to other funds - - - 5,253 - - 5,253 - Due from other governments - 22 15 27 52 624 740 55 Inventories - - 401 - - - 401 332 Total current assets 4,639 13,169 13,643 22,294 4,864 3,470 62,079 17,520 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 2,211 12,544 4,272 12,849 1,960 120 33,956 - Capital assets: Land 6,798 695 6,296 1,787 726 9,480 25,782 45 Buildings 24,908 59,485 23,461 999 5,869 4,304 119,026 831 Improvements other than buildings 166 7,365 2,331 121 9 357 10,349 50 Machinery and equipment 446 9,909 10,433 153 122 635 21,698 13,163 Infrastructure - 86,797 47,104 10,873 - 41,146 185,920 1,006 Accumulated depreciation (13,368) (58,672) (18,975) (8,981) (3,525) (11,054) (114,575) (9,884) Construction in progress 567 165 782 1,107 - 3,583 6,204 199 Total noncurrent assets 21,728 118,288 75,704 18,908 5,161 48,571 288,360 5,410 Total assets 26,367 131,457 89,347 41,202 10,025 52,041 350,439 22,930 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2009 Business-type Activities - Enterprise Funds 36 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities: Accounts payable 36 $ 133 $ 178 $ 141 $ 27 $ 270 $ 785 $ 261 $ Contracts payable 5 - 53 221 - 591 870 - Accrued liabilities 158 170 243 234 81 61 947 2,280 Due to other governments - - 34 64 13 - 111 - Interest payable 287 1,249 608 - - - 2,144 - Bonded debt payable (net of unamortized discounts) 386 4,195 1,259 - - - 5,840 - Total current liabilities 872 5,747 2,375 660 121 922 10,697 2,541 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 2 - 415 13 233 9 672 - Advances from other funds 2,450 - - - 18 1,299 3,767 - Bonded debt payable (net of unamortized discounts) 9,211 50,775 26,367 - - - 86,353 - Other Post Employment Benefits Obligation 32 40 49 53 15 13 202 (12) Landfill closure/postclosure liability - - - 10,646 - - 10,646 - Total noncurrent liabilities 11,695 50,815 26,831 10,712 266 1,321 101,640 (12) Total liabilities 12,567 56,562 29,206 11,372 387 2,243 112,337 2,529 Net Assets Invested in capital assets, net of related debt 9,920 50,774 43,806 6,059 3,201 48,451 162,211 5,410 Restricted by bond ordinance 1,651 11,295 3,179 - - - 16,125 - Restricted by state statute - - - 802 - - 802 - Restricted for future improvements 272 - - - - - 272 - Restricted by grant agreement - - - - 1,960 - 1,960 - Unrestricted 1,957 12,826 13,156 22,969 4,477 1,347 56,732 14,991 Total net assets 13,800$ 74,895$ 60,141$ 29,830$ 9,638 $ 49,798$ 238,102 20,401$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 7,110 Net assets of business-type activities 245,212$ 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, 2009 (amounts expressed in thousands) 37 38 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Operating Revenues: Charges for services 5,438 $ 12,557 $ 8,107 $ 8,286 $ 181 $ 1,658 $ 36,227 $ 15,472 $ Miscellaneous 4 84 86 58 53 32 317 17 Total operating revenues 5,442 12,641 8,193 8,344 234 1,690 36,544 15,489 Operating Expenses: Personal services 1,845 1,848 2,316 2,363 927 695 9,994 2,010 Commodities 196 853 768 375 55 249 2,496 2,261 Services and charges 983 2,501 2,642 4,160 6,096 445 16,827 9,895 3,024 5,202 5,726 6,898 7,078 1,389 29,317 14,166 Depreciation 871 4,155 2,124 592 157 1,156 9,055 1,131 Total operating expenses 3,895 9,357 7,850 7,490 7,235 2,545 38,372 15,297 Operating income (loss) 1,547 3,284 343 854 (7,001) (855) (1,828) 192 Nonoperating Revenues (Expenses): Gain on disposal of capital assets 214 131 - - 15 - 360 44 Operating grants - 1 15 607 6,668 2 7,293 - Interest income 188 820 625 682 205 57 2,577 413 Interest expense (578) (2,578) (1,351) - - - (4,507) - Total nonoperating revenues (expenses) (176) (1,626) (711) 1,289 6,888 59 5,723 457 Income (loss) before capital contributions and transfers 1,371 1,658 (368) 2,143 (113) (796) 3,895 649 Capital contributions - 266 132 - - 3,307 3,705 4 Transfers in - 148 469 - 50 515 1,182 277 Transfers out (205) (296) (698) (104) - (197) (1,500) (59) Change in net assets 1,166 1,776 (465) 2,039 (63) 2,829 7,282 871 Net Assets, Beginning 12,634 73,119 60,606 27,791 9,701 46,969 19,530 Net Assets, Ending 13,800 $ 74,895 $ 60,141 $ 29,830 $ 9,638 $ 49,798 $ 20,401 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 310 Change in net assets of business-type activities 7,592 $ The notes to the 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, 2009 (amounts expressed in thousands) 39 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Cash Flows From Operating Activities Receipts from customers and users 5,531 $ 12,694 $ 8,240 $ 8,738 $ 231 $ 1,701 $ 37,135 $ 15,606 $ Payments to suppliers (1,181) (3,322) (3,612) (4,081) (6,204) (659) (19,059) (12,708) Payments to employees (1,786) (1,772) (2,231) (2,292) (902) (692) (9,675) (1,906) Net cash flows from operating activities 2,564 7,600 2,397 2,365 (6,875) 350 8,401 992 Cash Flows From Noncapital Financing Activities Grants received - - - 609 6,644 - 7,253 - Transfers from other funds - 138 469 - 50 515 1,172 277 Transfers to other funds (205) (296) (698) (94) - (197) (1,490) (59) Repayment/(payment) of notes receivable 170 - - 4 39 - 213 - Advances from other funds (600) - - - - 94 (506) - Advances to other funds - - - 721 - - 721 - Net cash flows from noncapital financing activities (635) (158) (229) 1,240 6,733 412 7,363 218 Cash Flows From Capital and Related Financing Activities Capital grants received - - - - - 3,249 3,249 - Acquisition and construction of property and equipment (636) (157) (634) (351) (289) (3,909) (5,976) (1,002) Proceeds from sale of property 484 131 - - 58 6 679 55 Proceeds from issuance of refunding debt (principal plus premium & less discount) - 33,636 17,004 - - - 50,640 - Principal paid on bonded debt (370) (38,645) (18,893) - - - (57,908) - Interest paid on bonded debt (584) (2,813) (1,352) - - - (4,749) - Net cash flows from capital and related financing activities (1,106) (7,848) (3,875) (351) (231) (654) (14,065) (947) Cash Flows From Investing Activities Interest on investments 149 1,411 561 693 200 73 3,087 428 Net increase (decrease) in cash and cash equivalents 972 1,005 (1,146) 3,947 (173) 181 4,786 691 Cash and Cash Equivalents, Beginning 5,750 23,243 17,550 24,747 5,542 2,522 79,354 16,314 Cash and Cash Equivalents, Ending 6,722 $ 24,248 $ 16,404 $ 28,694 $ 5,369 $ 2,703 $ 84,140 $ 17,005 $ (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, 2009 40 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) 1,547 $ 3,284 $ 343 $ 854 $ (7,001) $ (855) $ (1,828) $ 192 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 871 4,155 2,124 592 157 1,156 9,055 1,131 Changes in: Receivables: Accounts and unbilled usage 93 55 42 379 (1) 12 580 3 Due from other governments - (2) 1 13 4 - 16 114 Inventories - - (37) - - - (37) (11) Accounts payable (2) 32 (177) (84) (56) 35 (252) (541) Accrued liabilities 27 36 36 18 10 (10) 117 116 Due to other governments - - 12 (10) 3 - 5 - Deposits (4) - 4 2 (6) (1) (5) - Other Post Employment Benefits Obligation 32 40 49 53 15 13 202 (12) Landfill closure/postclosure liability - - - 548 - - 548 - Total adjustments 1,017 4,316 2,054 1,511 126 1,205 10,229 800 Net cash flows from operating activities 2,564 $ 7,600 $ 2,397 $ 2,365 $ (6,875) $ 350 $ 8,401 $ 992 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others - $ 247 $ 132 $ - $ - $ 68 $ 447 $ 4 $ The notes to the financial statements are an integral part of this statement. (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, 2009 41 Agency Funds Assets Equity in pooled cash and investments 234 $ Accounts receivable 6 Interest receivable 2 Total assets 242 $ Liabilities Accrued liabilities 10 $ Due to agency 232 Total liabilities 242 $ The notes to the financial statements are an integral part of this statement. June 30, 2009 (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES 42 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS June 30, 2009 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, a mass transportation system, public safety, streets, parks, and cultural facilities. It also operates an airport, parking facilities, water treatment, wastewater treatment, stormwater collection, sanitation collection and disposal (including landfill operations), cable television, and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the City. There were no component units required to be included. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government. Governmental activities , which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities , which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues . As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer function and various other functions of the government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 43 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned or administered by the City or for which the City acts as custodian. The City maintains its records on a modified cash basis of accounting under which only cash receipts, cash disbursements and encumbrances, investments, and bonded debt are recorded. These modified cash basis accounting records have been adjusted to the accrual or modified accrual basis, as necessary, to prepare the accompanying financial statements in accordance with GAAP. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, net assets, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its “measurement focus.” The government-wide financial statements and proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 44 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The Employee Benefits Fund is used to account for the employee benefits related to those employees who are paid through governmental fund types, which are funded by a separate property tax levy. The Community Development Block Grant Fund accounts for revenue from the U.S. Department of Housing and Urban Development’s Community Development Block Grant programs. The Other Shared Revenue and Grants Fund accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Debt Service Fund accounts for the accumulation of resources for and the payment of general long-term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Parking Fund is used to account for the operation and maintenance of the “on” and “off” street public parking facilities. The Wastewater Treatment Fund is used to account for the operation and maintenance of the wastewater treatment facility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Housing Authority Fund is used to account for the operations and activities of the City’s low and moderate income housing assistance and public housing programs. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Maintenance Fund, Central Services Fund, Loss Reserve Fund , and the Information Technology Fund. The City also reports fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has two fiduciary funds which are maintained as agency funds, with no attempt to create an ongoing fund balance. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of landfill closure and post-closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are processed. Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and nonrestricted investments with a maturity of three months or less when purchased are considered cash equivalents. Receivables and Revenue Recognition Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded, the related revenue is deferred in both the government-wide and fund financial statements and will not be recognized as revenue until the year for which it is levied. Federal and state grants are recorded as receivables and the revenue is recognized during the period in which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual criteria are met. Income from investments in all fund types and from charges for services in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, fees and refunds, charges for services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. 46 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the General Fund, Water Fund, and the Equipment Maintenance Fund. Inventories are reported at the lower of cost (first-in, first-out) or market. The costs of governmental fund type inventories are recorded as expenditures when purchased. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City follows the policy of not capitalizing an asset with an initial, individual cost of less than $50,000 for infrastructure assets and $5,000 for remaining assets. Such assets are recorded at original purchase cost or at fair value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 – 100 years Buildings and structures 20 – 50 years Improvements other than buildings 15 – 50 years Vehicles 2 – 20 years Other equipment 5 – 30 years Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government-wide statements, they are amortized over the life of the bonds. Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee’s then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions The provision for pension cost is recorded on the accrual basis (based on statutorily determined contribution rates), and the City’s policy is to fund pension costs as they accrue. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 7). Budgetary and Legal Appropriation and Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 of each year to become effective July 1, and constitutes the City’s appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital outlay Business-type b. The amount to be raised by property taxation c. Income from sources other than property taxation d. Transfers in and transfers out The legal level of control (the level at which expenditures may not legally exceed appropriations) is the function level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a function, within a fund type, and between fund types, without the approval of the governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The City’s budget for revenue focuses on the individual fund revenue rather than on aggregated fund totals. The City formally adopts budgets for several funds that are not required by state law to be included in the annual function budget. Annual operating budgets are adopted for the internal service funds for management control purposes. Such budgets, however, are not legally required to be adopted under state statutes. These budgets are adopted and amended at the same time and in the same manner as the City’s annual function budget. 48 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the end of the preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property taxation. c. To permit transfers between funds. d. To permit transfers between programs. A budget amendment must be prepared and adopted in the same manner as the original budget. The City’s budget was amended as prescribed, and the effects of those amendments are shown in the accompanying budgetary comparison schedule. The original budget was increased by $205,700,000 in revenues and other financing sources and by $219,660,000 in expenditures and other financing uses. Appropriations as adopted or amended, and not encumbered, lapse at the end of the fiscal year. As allowed by GASB Statement No. 41, Budgetary Comparison Schedules – Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program structure of nine functional areas as required by state statute for its legally adopted budget. Restricted Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund’s purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted assets, are classified as such. 2. Compliance and Accountability At June 30, 2009 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $1,883,000. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Transportation. If not, bonds will be issued in 2010 to cover the capital expenditures. At June 30, 2009 the Other Shared Revenue and Grants Fund reported a deficit balance of $720,000. The deficit is due to flood expenditures related to home buyouts and down payment assistance. The City will be receiving funds from the Iowa Department of Economic Development and the Iowa Finance Authority to cover these expenditures. 3. Cash and Pooled Investments The City’s deposits in banks at June 30, 2009 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open–end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; certain joint investment trusts; and warrants or improvement certificates of a drainage district. Investments are stated at fair value. In addition, the City had investments in the Iowa Public Agency Investment Trust, which are valued at an amortized cost of $31,170,349 pursuant to Rule 2a-7 under the Investment Company Act of 1940. Interest rate risk. The City’s investment policy limits the investment of general and operating funds to one year, unless a temporary extension of maturities is approved by the City Council. In such cases, the average maturity of each fund’s portfolio shall not exceed 397 days. Funds not identified as operating funds may be invested in instruments whose maturities do not exceed five years at the time of purchase. Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody’s Investors service as it is a state security that is backed by the full faith and credit of the issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. The aforementioned Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. IPAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Due to legal and budgetary reasons, the general fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2009, consisted of the following: Community Development Debt Block Grant Service Sanitation Total Advances to: General -$ - $ 1,503,545 $ 1,503,545 $ Other Shared Revenue and Grants - 218,275 - 218,275 Parking - - 2,450,183 2,450,183 Housing Authority 18,000 - - 18,000 Nonmajor enterprise - - 1,299,238 1,299,238 Total 18,000 $ 218,275 $ 5,252,966 $ 5,489,241 $ Advances from Interfund balances at June 30, 2009, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans and land. $1,275,068 of the $1,299,238 advances to the Nonmajor Enterprise Funds and $2,370,821 of the $2,450,183 advance to the Parking Fund are not expected to be repaid within the next year. $1,287,850 of the $1,503,545 advances to the General Fund and $207,973 of the $218,275 advance to the Other Shared Revenue and Grants Fund are not expected to be repaid within the next year. None of the $18,000 advance to Housing Authority is expected to be repaid within the next year. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Interfund transfers for the year ended June 30, 2009, consisted of the following: Other Community Shared Employee Development Revenue and Nonmajor General Benefits Block Grant Grants Governmental Transfer to: General -$ 7,887,662 $ - $ 59,986 $ - $ Debt service 93,584 - - 63,262 2,727,402 Other shared revenue and grants 3,826 336,262 - - 93,798 Nonmajor governmental 359,191 - - 1,327,269 2,136,035 Wastewater treatment 137,774 - - - - Water 110,542 - - - 352,236 Housing Authority - - 49,525 - - Nonmajor enterprise 128,115 - - - 386,861 Internal Service 86,234 - - 46,021 - Total Transfer to 919,266 $ 8,223,924 $ 49,525 $ 1,496,538 $ 5,696,332 $ Transfer from (continued) Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. 52 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Wastewater Nonmajor Internal Total Parking Treatment Water Sanitation Enterprise Service Transfer from 200,000 $ 171,757 $ 172,796 $ - $ 168,264 $ - $ 8,660,465 $ - - - - 28,486 - 2,912,734 - - - - - - 433,886 - 124,684 477,000 2,734 - 52,425 4,479,338 - - - 9,902 - 53 147,729 - - - - - 6,274 469,052 - - - - - 137 49,662 - - - - - - 514,976 5,250 - 47,895 91,731 - - 277,131 205,250 $ 296,441 $ 697,691 $ 104,367 $ 196,750 $ 58,889 $ 17,944,973 $ Transfer from 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 5. Capital Assets Capital asset activity for the year ended June 30, 2009, was as follows: Beginning July 1, 2008 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2009 Governmental activities: Capital assets, not being depreciated: Land 15,481,745 $ 2,313,900 $ 312,739 $ 17,482,906 $ Construction in progress 11,994,137 10,864,242 8,552,811 14,305,568 Total capital assets, not being depreciated 27,475,882 13,178,142 8,865,550 31,788,474 Capital assets, being depreciated: Buildings 58,816,250 3,378,859 913,848 61,281,261 Improvements other than buildings 5,207,991 228,574 91,267 5,345,298 Machinery and equipment 35,799,591 3,224,628 1,785,874 37,238,345 Infrastructure 90,713,853 6,628,384 - 97,342,237 Total capital assets being depreciated 190,537,685 13,460,445 2,790,989 201,207,141 Less accumulated depreciation for: Buildings 15,171,558 1,532,381 396,221 16,307,718 Improvements other than buildings 1,471,948 205,590 53,035 1,624,503 Machinery and equipment 23,380,199 2,714,174 1,245,002 24,849,371 Infrastructure 20,717,043 2,166,869 - 22,883,912 Total accumulated depreciation 60,740,748 6,619,014 1,694,258 65,665,504 Total capital assets, being depreciated, net 129,796,937 6,841,431 1,096,731 135,541,637 Governmental activities capital assets, net 157,272,819 $ 20,019,573 $ 9,962,281 $ 167,330,111 $ 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Beginning July 1, 2008 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2009 Business-type activities: Capital assets, not being depreciated: Land 25,920,593 $ 55,000 $ 192,460 $ 25,783,133 $ Construction in progress 10,799,218 5,033,111 9,627,643 6,204,686 Total capital assets, not being depreciated 36,719,811 5,088,111 9,820,103 31,987,819 Capital assets, being depreciated: Buildings 118,764,725 526,480 265,173 119,026,032 Improvements other than buildings 10,412,335 - 63,893 10,348,442 Machinery and equipment 21,511,385 247,791 60,122 21,699,054 Infrastructure 175,345,529 11,193,401 618,153 185,920,777 Total capital assets being depreciated 326,033,974 11,967,672 1,007,341 336,994,305 Less accumulated depreciation for: Buildings 41,061,815 3,217,870 120,240 44,159,445 Improvements other than buildings 2,745,777 433,605 63,893 3,115,489 Machinery and equipment 11,207,464 1,271,241 44,442 12,434,263 Infrastructure 50,703,898 4,164,367 - 54,868,265 Total accumulated depreciation 105,718,954 9,087,083 228,575 114,577,462 Total capital assets, being depreciated, net 220,315,020 2,880,589 778,766 222,416,843 Business-type activities capital assets, net 257,034,831 $ 7,968,700 $ 10,598,869 $ 254,404,662 $ Depreciation expense was charged to functions as follows: Governmental activities: Public safety 586,320 $ Public works 2,719,122 Culture and recreation 1,875,677 Community and economic development 37,060 General government 269,897 Internal service funds 1,130,938 Total depreciation expense - governmental activities 6,619,014 $ Business-type activities: Parking 871,351 $ Wastewater treatment 4,154,961 Water 2,123,530 Sanitation 591,679 Housing authority 156,690 Nonmajor enterprise 1,155,537 Total depreciation expense - business-type activities 9,053,748 $ 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 As a result from last year’s flood to the Iowa River it was determined that the City had multiple assets that were impaired and recorded a total impairment loss of $820,510. The total amount of impairment was calculated from the following funds: Governmental Activities $178,562, Water $618,153, and Sewer $23,795. As of June 30th, 2009, the carrying value of the impaired assets is $2,102,950. As a result the City did receive insurance proceeds and are broken out as follows: Governmental Activities $33,684, Water $156,078, and Sewer $155,039. 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: General obligation bonds $ 82,177,395 $ 30,035,000 $ 31,558,235 $ 80,654,160 $ 9,354,538 Plus: Unamortized Premium 91,137 551,525 74,289 568,373 74,289 $ 82,268,532 $ 30,586,525 $ 31,632,524 $ 81,222,533 $ 9,428,827 Business-type activities: General obligation bonds $ 4,912,605 -$ $ 571,765 $ 4,340,840 $ 590,462 Less: Unamortized Discounts 26,895 - 3,842 23,053 3,842 Total general obligation bonds 4,885,710 - 567,923 4,317,787 586,620 Revenue bonds 95,345,000 49,805,000 57,335,000 87,815,000 5,275,000 Less: Unamortized Discounts (Premium) 795,614 (834,874) 21,595 (60,855) 21,595 Total revenue bonds 94,549,386 50,639,874 57,313,405 87,875,855 5,253,405 $ 99,435,096 $ 50,639,874 $ 57,881,328 $ 92,193,642 $ 5,840,025 General Obligation Bonds Various issues of general obligation bonds totaling $84,995,000 are outstanding as of June 30, 2009. The bonds have interest rates ranging from 1.5% to 5.6% and mature in varying annual amounts ranging from $90,000 to $2,195,000 per issue, with the final maturities due in the year ending June 30, 2023. Interest and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Portions of several general obligation bond issues have been used to acquire or expand the enterprise fund facilities. In some instances, revenue generated by the enterprise funds is used to pay the general long- term debt principal and interest. The liability for those bonds that are expected to be paid by enterprise funds is included in those funds. 56 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 Principal Interest Principal Interest 2010 9,354,538 3,063,930 590,462 161,826 2011 9,570,840 2,756,034 604,160 140,850 2012 9,877,143 2,427,730 622,857 119,247 2013 8,853,445 2,082,934 641,554 96,592 2014 8,558,446 1,771,924 636,555 71,997 2015-2019 29,249,748 4,396,151 1,245,252 80,623 2020-2024 5,190,000 541,079 - - Total 80,654,160 $ 17,039,782 $ 4,340,840 $ 671,135 $ Governmental Activities Business-type Activities On October 15, 2008, the City issued $17,005,000 of general obligation bonds for a current refunding of $17,080,000 of general obligation bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,649,714 in future debt service payments and an economic gain of $1,416,867. On June 8, 2009, the City issued $5,840,000 of general obligation bonds for a current refunding of $6,060,000 of general obligation bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $607,283 in future debt service payments and an economic gain of $560,372. Revenue Bonds As of June 30, 2009, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 11,350,000 $ 68,975,000 $ 25,365,000 Interest rates 5.9% to 6.0% 3.0% to 5.0% 2.0% to 4.65% Annual maturities $ 390,000 to $ 260,000 to $ 330,000 to $ 895,000 $ 3,010,000 $ 835,000 Amount outstanding $ 9,665,000 $ 54,770,000 $ 23,380,000 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Business-type Activities June 30 Principal Interest 2010 5,275,000 3,924,037 2011 6,240,000 3,472,389 2012 6,575,000 3,231,351 2013 6,795,000 2,975,848 2014 5,035,000 2,746,075 2015-2019 28,625,000 10,356,513 2020-2024 24,635,000 3,697,709 2025-2029 4,635,000 190,744 87,815,000 $ 30,594,666 $ The revenue bond ordinances required that wastewater treatment, parking system, and water revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account Amount (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Parking Revenue and Water Revenue bonds – maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds – 125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds, $5,000 per month until the reserve balance equals or exceeds $300,000 for Parking Revenue bonds and $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 On October 15, 2008, the City issued $24,280,000 of wastewater revenue bonds for a current refunding of $24,810,000 of wastewater revenue bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $3,245,227 in future debt service payments and an economic gain of $2,516,712. Also, on October 15, 2008, the City issued $7,115,000 of water revenue bonds for a current refunding of $7,045,000 of water revenue bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $571,390 in future debt service payments and an economic gain of $424,441. On May 18, 2009, the City issued $8,660,000 of wastewater revenue bonds for a current refunding of $9,220,000 of wastewater revenue bonds on July 1, 2009. As a result, the refunded wastewater revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,479,329 in future debt service payments and an economic gain of $1,148,058. Also, on May 18, 2009, the City issued $9,750,000 of water revenue bonds for a current refunding of $9,895,000 of water revenue bonds on July 1, 2009. As a result, the refunded water revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,407,282 in future debt service payments and an economic gain of $1,040,086. 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2009, are comprised of the following issues: Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2009 General Obligation Bonds: Multi-Purpose and Library Construction May 2002 29,100,000 $ 3.5 - 5.0 6/21 16,895,000 $ Refunded Multi-Purpose (1) Oct. 2002 10,600,000 2.5 - 4.0 6/15 2,470,000 Multi-Purpose Nov. 2003 5,570,000 2.5 - 3.6 6/14 2,710,000 Taxable-Urban Renewal Mar. 2004 7,305,000 4.0 - 5.4 6/23 6,660,000 Multi-Purpose Mar. 2005 7,020,000 3.0 - 4.0 6/15 4,505,000 Multi-Purpose Jun. 2006 6,265,000 3.625 - 4.0 6/16 4,690,000 Multi-Purpose Jun. 2006 1,000,000 5.5 - 5.6 6/16 765,000 Refunded Water Construction (2) Sep. 2006 3,350,000 3.6 - 3.75 6/17 2,415,000 Multi-Purpose May 2007 8,870,000 3.75 6/17 7,350,000 Multi-Purpose June 2008 9,150,000 3.25 - 3.75 6/18 8,355,000 Refunded Multi-Purpose Oct. 2008 17,005,000 3.0 - 3.75 6/18 15,150,000 Multi-Purpose June 2009 6,685,000 2.5 - 4.0 6/19 6,685,000 Taxable- Housing Improvemnts June 2009 505,000 1.5 - 3.0 6/14 505,000 Refunded Multi-Purpose June 2009 5,840,000 2.0 - 4.0 6/16 5,840,000 Total General Obligation Bonds 84,995,000 $ Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2009 Revenue Bonds: Parking Bonds Dec. 1999 11,350,000 $ 5.875 - 6.0 7/24 9,665,000 $ Wastewater Treatment Bonds Dec. 2001 10,250,000 4.5 - 5.0 7/20 10,250,000 Refunded Wastewater Treatment Bonds (3) Apr. 2002 25,785,000 3.25 - 4.1 7/12 11,580,000 Refunded Wastewater Treatment Bonds (4) Oct. 2008 24,280,000 3.0 - 5.0 7/22 24,280,000 Refunded Wastewater Treatment Bonds (5) May 2009 8,660,000 3.5 - 5.0 7/25 8,660,000 Water Bonds Oct. 2002 8,500,000 2.0 - 4.65 7/22 6,515,000 Refunded Water Bonds (6) Oct. 2008 7,115,000 3.0 - 4.375 7/24 7,115,000 Refunded Water Bonds (7) May 2009 9,750,000 4.0 - 4.5 7/25 9,750,000 Total Revenue Bonds 87,815,000 172,810,000 $ 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 (1) This bond issue has a portion of the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. (2) This bond issue has the general obligation bonds payable shown as a liability on the balance sheet of the Water Fund. Also, this bond issue refunds the November 1997 Water Construction General Obligation Bonds. (3) This bond issue refunds the January 1993 Wastewater Revenue Bonds. (4) This bond issue refunds the March 1996, May 1997, and January 1999 Wastewater Revenue Bonds. (5) This bond issue refunds the October 2000 Wastewater Revenue Bonds. (6) This bond issue refunds the May 1999 Water Revenue Bonds. (7) This bond issue refunds the December 2000 Water Revenue Bonds. Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds to provide financial assistance to private sector entities for the acquisition, construction, and renovation of industrial and commercial facilities deemed to be in the public interest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2009, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $39,501,549. Debt Legal Compliance Legal Debt Margin: As of June 30, 2009, the general obligation debt issued by the City did not exceed its legal debt margin computed as follows: Assessed valuation: Real property $ 4,215,084,214 Utilities 65,749,643 Total valuation $ 4,280,833,857 Debt limit, 5% of total assessed valuation $ 214,041,693 Debt applicable to debt limit: General obligation bonds 84,995,000 Legal debt margin $ 129,046,693 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 7. Other Long-term Liabilities Notes Payable Changes in Long-Term Liabilities - Notes Payable Note Payable activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: 211,000 - - 211,000 - A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1%, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. Employee Vested Benefits Changes in Long-Term Liabilities - Employee Vested benefits Employee Vested Benefits activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: $ 1,962,290 1,117,493 $ 1,049,665 $ 2,030,118 $ 1,087,269 $ Business-type activities: $ 494,369 $ 282,016 265,936 $ $ 510,449 278,551 $ For the governmental activities, employee vested benefits are generally liquidated by the General Fund and Community Development Block Grant Fund. Landfill Closure / Post-Closure Care Costs Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs Landfill Closure Post-closure care activity for the year ended June 30, 2009, was as follows: Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Business-type activities: $ 10,097,691 $ 548,244 -$ $ 10,645,935 -$ In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post-closure Care Costs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post-closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on the amount of the landfill used during the year. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The estimated liability for landfill closure and post-closure care costs as of June 30, 2009, is approximately $10,645,935, which is based on 81.9% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,688,700 will be recognized as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2009, was determined by engineers from Howard R. Green Company and approximated $12,998,700. It is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2009. These amounts are based on an estimated post- closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. However, the actual cost of closure and post-closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post-closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2009, the Sanitation Fund had $12,033,534 in related equity in pooled cash and investments, at fair value designated for satisfaction of post-closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion of post-closure care costs, anticipated future inflation costs and additional costs that might arise from changes in post-closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. Other Post Employment Benefits Changes in Long-Term Liabilities - Other Post Employment Benefits Due Within July 1, 2008 Issues Retirements June 30, 2009 One Year Governmental activities: $ - $ 464,700 $ - $ 464,700 $ - Business-type activities: $ - $ 201,091 $ - $ 201,091 $ - The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other Than Pensions during the year ended June 30, 2009. Plan Description : The City operates two self-funded medical and dental plans, one for Police and Fire Union employees and one for all other employees, which are offered to current and retired employees and their dependents. All full-time employees who retire or terminate/resign and their eligible dependents are offered the following post-employment benefit options: Health insurance and dental insurance – The option of continuing with the City’s health insurance plan at the individual’s expense. These benefits cease upon Medicare eligibility. Life insurance – The option of converting the employee’s City-paid policy to an individual policy at the individual’s expense with the City’s life insurance carrier. 63 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Actuarial Methods and Assumptions : Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumption about future employments, mortality, and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. The required schedule of funding progress, presented as required supplementary information in the section following the Notes to Financial Statements, will present multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plans members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plans members in the future. As of the July 1, 2008 actuarial valuation date, the actuarial cost method used is the entry age normal method. The actuarial assumption includes a 4% discount rate. The projected annual medical trend rate is 10.5%. The ultimate medical trend rate is 6%. The medical trend rate is reduced by 0.5% each year until reaching the 6% ultimate trend rate. The projected annual dental trend rate is 6.0%. The ultimate dental trend rate is 4%. The dental trend rate is 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 $980.70 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. 8. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. During the year ended June 30, 2009 the City purchased property, liability, and workers’ compensation insurance under the program that provides 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 sixteen fiscal years. 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund’s accrued liabilities balance includes a claims liability at June 30, 2009 based on the requirements of GASB Statement No. 10, as amended, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund’s claims liability amount for property, liability, and workers’ compensation for the years ended June 30, 2009 and 2008 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2007 – 2008 $ 1,237,000 $ 876,000 $ 813,000 $ 1,300,000 2008 – 2009 1,300,000 889,000 952,000 1,237,000 Also, the City is partially self-insured, through stop-loss insurance, for employee health care coverage, which is available to all of its permanent employees. This insurance provides stop-loss coverage for claims in excess of $100,000 per employee with an aggregate stop-loss of $7,355,786. The operating funds are charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund’s claims liability amount for health care coverage for the years ended June 30, 2009 and 2008 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2007 – 2008 $ 589,000 $ 5,901,000 $ 5,802,000 $ 688,000 2008 – 2009 688,000 6,649,000 6,500,000 837,000 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 9. Contractual Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2009 are as follows: Project Amount Bridge, street and traffic Paving and bridge construction, 2,054,138 $ control construction engineering design and consulting Other construction Public works construction, culture & recreation construction, and fire station construction 402,027 Water Water main construction 139,708 Parking Garage access controls and repair & maintenance 121,516 Sanitation Landfill consulting 416,608 Airport Runway extension consulting, grading and paving 3,211,097 6,345,094 $ Fund 10. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City’s experience that such actions are settled for amounts substantially less than claimed amounts. The City’s management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City. 11. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa The City is a participating employer in the Municipal Fire and Police Retirement System of Iowa (MFPRSI or the Plan), which is 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 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Retirement System of Iowa, 7155 Lake Drive Suite 201, West Des Moines, Iowa 50266 or the report may be obtained from website www.mfprsi.org under the publications link. A member may retire at age 55 with 22 years of employment, and receive full benefits that are equal to 66% 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, 2009, members contributed 9.35%. The City’s contribution rate is based upon an actuarially determined normal contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, the total then being divided by 1% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions. Legislatively appropriated contributions from the state to the plan may further reduce the City’s contribution rate. However, the City’s contribution rate may not be less than 17% of earnable compensation. The City was required to contribute 18.75% of earnable compensation of each member in 2009, 25.48% of earnable compensation in 2008, and 27.75% of earnable compensation in 2007. The contributions paid by the City for the years ended June 30, 2007, 2008, and 2009, were $1,954,182, $1,910,454, and $1,434,031 respectively, and was equal to the required contributions for each year. Iowa Public Employees Retirement System The City contributes to the Iowa Public Employees Retirement System (IPERS), which is a cost-sharing multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death benefits, which are established by State statute to plan members and beneficiaries. IPERS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa 50306-9117. All employees, except temporary employees of six months or less of employment duration, who do not participate in any other public retirement system in the state are eligible and must participate in IPERS. The pension plan provides retirement and death benefits that are established by state statute. Generally, a member may retire at the age of 65, or any time after age 62 and 20 years or more of service, or when age plus years of service equals or exceeds 88, and receive unreduced (for age) benefits. Members may also retire at the age of 55 or more at reduced benefits. Benefits vest after four years of service or after attaining the age of 55. Full benefits are equal to 60% of the average of the highest three years of covered wages times years of service divided by 30. Plan members are required to contribute 4.10% of their annual covered salary and the City is required to contribute 6.35% of annual covered payroll. Contribution requirements are established by state statute. The City’s contributions to IPERS for the years ended June 30, 2007, 2008, and 2009, were $1,384,110, $1,534,552, and $1,668,173 respectively, and were equal to the required contributions for each year. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 12. Municipal Utility Systems Water System The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, and Public Information/Education. There are a total of 32.75 (FTE) employees who work in the Water Division. This division serves 67,831 people and has over 22,000 customers. The average daily use for 2009 was 5.51 million gallons per day (MGD). A peak flow of 10.6 MGD was experienced during the summer of 1989. Water Sources : The primary source of water for the City is the alluvial collector wells along the Iowa River. Four collector wells can provide approximately 11.0 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; four Siluran aquifer wells which can provide 1.0 MGD; a sand pit that can provide 3.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 20 MGD maximum capacity. Water Treatment Processes : The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening (coagulation/flocculation/sedimentation), and granular activated charcoal filtration processes with fluoridation and free chlorination. The grade four water facility employs operators that perform over 200 water quality tests per day in-house and collect samples for testing at the University Hygienic Laboratory. This testing ensures that the water meets all of the Safe Drinking Water Act Standards. Distribution System : The water flows through approximately 288 miles of water mains and includes over 25,000 service connections. The distribution piping consists of cast iron, ductile and PVC main that ranges in size from 2” to 30”. The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition there are four remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million gallons of water. The water system also provides for fire protection with approximately 3,100 hydrants located throughout the community. Billing and Collections : Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City’s bad debt write-offs have been less than 0.5% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2008. Water Service Charge Minimums (includes up to the first 100 cubic feet (c.f.)) Meter Size Meter Size (Inches) Charge (Inches) Charge 5/8” $6.41 2” $22.14 3/4” 7.00 3” 40.91 1” 8.26 4” 71.37 1 1/2” 16.47 6” 143.61 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Monthly Usage in excess of 100 cubic feet (c.f.) 101 – 3,000 $2.99 per 100 c.f. 3,001 and over $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. 2000 10% 2001 0% 2002 0% 2003 - 5% 2004 - 5% 2005 0% 2006 0% 2007 - 5% 2008 0% 2009 0% 70 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Financial Information : The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2009, 2008, and 2007. 2009 2008 2007 Operating Revenues: Charges for services 8,107 $ 8,195 $ 8,240 $ Miscellaneous 86 134 51 Total operating revenues 8,193 8,329 8,291 Operating Expenses: Personal services 2,316 2,160 2,091 Commodities 768 1,348 1,463 Services and charges 2,642 1,840 1,802 5,726 5,348 5,356 Depreciation 2,124 2,065 2,024 Total operating expenses 7,850 7,413 7,380 Operating income 343 916 911 Nonoperating Revenues (Expenses): Loss on disposal of capital assets - (2) - Operating Grants 15 - - Interest income 625 931 929 Interest expense (1,351) (1,426) (1,549) Total nonoperating revenues (expenses) (711) (497) (620) Income before capital contributions and transfers (368) 419 291 Capital contributions 132 314 845 Transfers in 469 689 3,045 Transfers out (698) (820) (237) Change in net assets (465) 602 3,944 Net Assets, Beginning 60,606 60,004 56,060 Net Assets, Ending 60,141 $ 60,606 $ 60,004 $ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS WATER SYSTEM STATEMENT OF REVENUES, EXPENSES 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2008 and the budget for the fiscal year ended June 30, 2009 on a cash basis. FY10 Actual Budget Percentage Budget Charges for services 8,144 $ 8,425 $ 96.66% 8,390 $ Interest income 561 1,025 54.73% 515 Miscellaneous 92 49 187.76% 1,799 Operating grants - 169 0.00% 1,749 Bond sales 16,952 17,251 98.27% - Total Receipts 25,749 $ 26,919 $ 95.65% 12,453 $ Personal services 2,353 $ 2,371 $ 99.24% 2,492 $ Commodities 652 768 84.90% 708 Services and charges 2,185 2,582 84.62% 2,574 Capital outlay 994 4,318 23.02% 4,502 Transfer to capital project funds 477 1,101 43.32% 1,524 Operating subsidy 17 17 100.00% 20 Debt service payments 19,790 20,152 98.20% 2,833 Total Disbursements 26,468 $ 31,309 $ 84.54% 14,653 $ WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2009 (amounts expressed in thousands) Sewer System The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 300 miles of sanitary sewers, 14 lift stations, and 2 treatment plants. There are a total of 25.60 (FTE) employees who work in the Wastewater Division. This division serves 67,831 people and has over 23,000 customers. The average daily treatment for 2009 was 12.34 million gallons per day (MGD). The North Plant was constructed in 1935 and the South Plant was completed in 1990 and upgraded in 2002. The connecting of the North and South Plants was completed in 1998. The City has the capability to divert treatment to the South Plant and control all operations remotely through computer systems. The combined wastewater treatment system has a maximum daily capacity of 41.00 MGD. Both plants are in compliance with federal clean water standards. Billing and Collections : Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City’s bad debt write-offs have been less than 0.5% of gross revenues for the past three years. 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Rates: The following rates and charges were effective July 1, 2008. Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $8.15 Monthly Usage in excess of 100 cubic feet (c.f.) $3.99 Changes in sewer rates over the last ten fiscal years. 2000 20% 2001 5% 2002 5% 2003 0% 2004 0% 2005 0% 2006 0% 2007 8% 2008 0% 2009 5% 73 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2008 and the budget for the fiscal year ended June 30, 2009 on a cash basis. FY10 Actual Budget Percentage Budget Charges for services 12,611 $ 13,575 $ 92.90% 13,413 $ Interest income 1,411 915 154.21% 672 Miscellaneous 84 - 0.00% - Operating grants - 1,063 0.00% 20,563 Local option sales tax - - 0.00% 3,900 Bond sales 33,590 34,365 97.74% - Total Receipts 47,696 $ 49,918 $ 95.55% 38,548 $ Personal services 1,778 $ 1,802 $ 98.67% 1,895 $ Commodities 564 473 119.24% 580 Services and charges 2,476 2,461 100.61% 2,578 Capital outlay 275 2,300 11.96% 27,884 Transfer to capital project funds 125 500 25.00% 624 Operating subsidy 17 17 100.00% 20 Debt service payments 40,822 41,513 98.34% 6,883 Total Disbursements 46,057 $ 49,066 $ 93.87% 40,464 $ SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2009 (amounts expressed in thousands) 13. Subsequent events On November 23, 2009, the City of Iowa City received and awarded capital loan notes for Parking Revenue Refunding Capital Loan Notes, Series 2009F in the amount of $9,110,000. The notes were issued to current refund on November 23, 2009, $9,275,000 of the City’s outstanding Parking Revenue Bonds, Series 1999, dated December 1, 1999. 14. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued seven statements not yet implemented by the City. The statements, which might impact the City are as follows: Statement No. 51, Accounting and Financial Reporting for Intangible Assets , issued June 2007, will be effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not specifically excluded by its scope be classified as capital assets. Statement No. 53, Accounting and Financial Reporting for Derivative Instruments , issued June 2008, will be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. 75 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2009 Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions , issued February 2009, will be effective for the fiscal year ending June 30, 2011. This Statement establishes new standards for fund balance classifications based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The City’s management has not yet determined the effect these statements will have on the City’s financial statements. 76 77 Governmental Fund Types Enterprise Fund Actual Budgetary Types Actual Total Actual Basis Budgetary Basis Budgetary Basis Revenues: Property Tax 43,137 $ - $ 43,137 $ Tax increment financing taxes 3,693 - 3,693 Other city taxes 1,597 - 1,597 Licenses and permits 1,272 8 1,280 Intergovernmental 21,353 10,696 32,049 Charges for services 4,758 34,830 39,588 Use of money and property 1,543 3,379 4,922 Miscellaneous 3,412 2,090 5,502 Total revenues 80,765 51,003 131,768 Expenditures/Expenses: Public safety 20,025 - 20,025 Public works 11,958 - 11,958 Culture and recreation 10,577 - 10,577 Community and economic development 13,893 - 13,893 General government 7,183 - 7,183 Debt service 35,740 - 35,740 Capital outlay 12,693 - 12,693 Business-type - 76,186 76,186 Total expenditures/expenses 112,069 76,186 188,255 Excess (deficiency) of revenues over (under) expenditures/expenses (31,304) (25,183) (56,487) Other financing sources and uses, net 32,647 49,801 82,448 Net change in fund balances 1,343 24,618 25,961 Balances, beginning of year 47,221 78,239 125,460 Balances, end of year 48,564 102,857 151,421 See Note to Required Supplementary Information. 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, 2009 (dollar amounts expressed in thousands) BUDGETARY BASIS 78 Final to Actual Variance - Positive Original Final (Negative) 43,168 $ 43,168 $ (31) $ 2,478 3,809 (116) 1,587 1,586 11 1,308 1,308 (28) 22,537 63,944 (31,895) 40,342 39,926 (338) 5,504 5,150 (228) 5,698 6,722 (1,220) 122,622 165,613 (33,845) 18,116 26,277 6,252 12,577 13,467 1,509 11,332 11,603 1,026 5,051 31,023 17,130 8,183 8,264 1,081 12,662 36,660 920 12,863 28,611 15,918 60,429 118,228 42,042 141,213 274,133 85,878 (18,591) (108,520) 52,033 9,619 85,587 (3,139) (8,972) (22,933) 48,894 104,586 125,460 95,614 102,527 Budgeted Amounts 79 Accrual Modified Accrual Budget Basis Adjustments Basis Revenues 80,765 $ (943) $ 79,822 $ Expenditures 112,069 (25,848) 86,221 Net (31,304) 24,905 (6,399) Other financing sources (uses) 32,647 (24,546) 8,101 Beginning Fund Balances 47,221 $ (6,800) $ 40,421 $ Ending Fund Balances 48,564 $ (6,441) $ 42,123 $ Accrual Accrual Budget Basis Adjustments Basis Revenues 51,003 $ (4,229) $ 46,774 $ Expenditures 76,186 (33,307) 42,879 Net (25,183) 29,078 3,895 Other financing sources (uses) 49,801 (46,414) 3,387 Beginning Fund Balances 78,239 152,581 $ 230,820 Ending Fund Balances 102,857 $ 135,245 $ 238,102 $ See Note to Required Supplementary 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, 2009 (dollar amounts expressed in thousands) 80 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2009 In accordance with Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and agency funds. The budget basis of accounting is cash basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and legal budgetary control is based upon nine major classes of expenditures known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital outlay and business-type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $42,991,000 and expenditures by $175,911,000. The budget amendments were primarily due to changes in breadth and timing of capital improvement projects and repair and clean-up costs and related grants due to the flood in the summer of 2008. 81 82 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Other Shared Revenue and Grants Fund – accounts for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. Economic Development Fund – accounts for revenue and expenditures of economic development activities. Johnson County Council of Governments Fund – accounts for the financial activities of the metropolitan/rural cooperative planning organization. CAPITAL PROJECTS FUNDS Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The fund in this category is as follows: Other Construction Fund – accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues and contributions. 83 Bridge, Johnson Street, and County Traffic Economic Council of Control Other Development Governments Construction Construction Total Assets Equity in pooled cash and investments 325 $ 49 $ 637$ 213$ 1,224$ Receivables: Property tax 29 - - - 29 Accounts and unbilled usage - - 155 5 160 Interest 24 - - 18 42 Due from other governments - 39 2,061 403 2,503 Restricted assets: Equity in pooled cash and investments - - - 14,634 14,634 Total assets 378$ 88 $ 2,853$ 15,273$ 18,592$ Liabilities and Fund Balances Liabilities: Accounts payable -$ 1$ 13 $ 142$ 156$ Contracts payable - - 686 340 1,026 Accrued liabilities - 22 21 8 51 Due to other governments - - 1,963 - 1,963 Deferred revenue - - 2,053 412 2,465 Total liabilities - 23 4,736 902 5,661 Fund balances: Reserved for: Encumbrances - - - 1,528 1,528 Unreserved Undesignated 378 65 (1,883) 12,843 11,403 Total fund balances 378 65 (1,883) 14,371 12,931 Total liabilities and fund balances 378$ 88 $ 2,853$ 15,273$ 18,592$ Capital Projects Special Revenue CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2009 (amounts expressed in thousands) 84 Bridge, Johnson Street, and County Traffic Economic Council of Control Other Development Governments Construction Construction Total Revenues Property taxes 3,688 $ -$ -$ -$ 3,688 $ Intergovernmental - 272 2,107 194 2,573 Use of money and property 36 - 20 244 300 Miscellaneous 40 3 31 13 87 Total revenues 3,764 275 2,158 451 6,648 Expenditures Current: Public safety - - - 547 547 Public works - - 1,044 96 1,140 Culture and recreation - - - 205 205 Community and economic development 1,031 614 - 39 1,684 General government - - - 73 73 Capital outlay - 4 4,592 4,890 9,486 Total expenditures 1,031 618 5,636 5,850 13,135 Excess (deficiency) of revenues over (under) expenditures 2,733 (343) (3,478) (5,399) (6,487) Other Financing Sources (Uses) Issuance of bonds - - - 7,190 7,190 Sale of capital assets - - - 360 360 Premium on issuance of bonds - - - 159 159 Transfers in - 338 3,862 279 4,479 Transfers out (2,727) - (672) (2,297) (5,696) Total other financing sources and (uses) (2,727) 338 3,190 5,691 6,492 Net change in fund balances 6 (5) (288) 292 5 Fund Balances, Beginning 372 70 (1,595) 14,079 12,926 Fund Balances, Ending 378 $ 65 $ (1,883) $ 14,371 $ 12,931 $ Capital Projects Special Revenue For the Year Ended June 30, 2009 (amounts expressed in thousands) NONMAJOR GOVERNMENTAL FUNDS AND CHANGES IN FUND BALANCES COMBINING STATEMENT OF REVENUES, EXPENDITURES, CITY OF IOWA CITY, IOWA 85 86 NONMAJOR ENTERPRISE FUNDS Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing services to the general public on a continuing basis are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The funds in this category are as follows: Airport Fund – accounts for the operation and maintenance of the airport facility. Stormwater Fund – accounts for the operation and maintenance of the stormwater operation. Cable Television Fund – accounts for the operation and maintenance of the Broadband Telecommunications Commission that oversees the franchise agreement with the cable television company, including production and broadcasting on the government television channels. 87 Cable Airport Stormwater Television Total Assets Current assets: Equity in pooled cash and investments 80 $ 1,349 $ 1,154 $ 2,583 $ Receivables: Accounts and unbilled usage - 67 177 244 Interest 1 9 9 19 Due from other governments 624 - - 624 Total current assets 705 1,425 1,340 3,470 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 9 - 111 120 Capital assets: Land 7,324 2,156 - 9,480 Buildings 3,563 - 741 4,304 Improvements other than buildings 357 - - 357 Machinery and equipment 281 260 94 635 Infrastructure 7,122 34,024 - 41,146 Accumulated depreciation (3,706) (7,072) (276) (11,054) Construction in progress 3,243 340 - 3,583 Total noncurrent assets 18,193 29,708 670 48,571 Total assets 18,898 31,133 2,010 52,041 Liabilities Current liabilities: Accounts payable 35 123 112 270 Contracts payable 591 - - 591 Accrued liabilities 3 14 44 61 Total current liabilities 629 137 156 922 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 9 - - 9 Advances from other funds 1,299 - - 1,299 Other Post Employment Benefits Obligation 1 2 10 13 Total noncurrent liabilities 1,309 2 10 1,321 Total liabilities 1,938 139 166 2,243 Net Assets Invested in capital assets, net of related debt 18,184 29,708 559 48,451 Unrestricted (1,224) 1,286 1,285 1,347 Total net assets 16,960 $ 30,994 $ 1,844 $ 49,798 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2009 88 Cable Airport Stormwater Television Total Operating Revenues: Charges for services 248 $ 622 $ 788 $ 1,658 $ Miscellaneous 29 3 - 32 Total operating revenues 277 625 788 1,690 Operating Expenses: Personal services 61 155 479 695 Commodities 20 202 27 249 Services and charges 198 157 90 445 279 514 596 1,389 Depreciation 415 709 32 1,156 Total operating expenses 694 1,223 628 2,545 Operating income (loss) (417) (598) 160 (855) Nonoperating Revenues (Expenses): Operating grants 2 - - 2 Interest income - 30 27 57 Total nonoperating revenues (expenses) 2 30 27 59 Income (loss) before capital contributions and transfers (415) (568) 187 (796) Capital contributions 3,239 68 - 3,307 Transfers in 195 320 - 515 Transfers out (37) - (160) (197) . Change in net assets 2,982 (180) 27 2,829 Net Assets, Beginning 13,978 31,174 1,817 46,969 Net Assets, Ending 16,960 $ 30,994 $ 1,844 $ 49,798 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2009 AND CHANGES IN FUND NET ASSETS 89 Cable Airport Stormwater Television Total Cash Flows From Operating Activities Receipts from customers and users 280 $ 626 $ 795 $ 1,701 $ Payments to suppliers (262) (284) (113) (659) Payments to employees (67) (146) (479) (692) Net cash flows from operating activities (49) 196 203 350 Cash Flows From Noncapital Financing Activities Transfers from other funds 195 320 - 515 Transfers to other funds (37) - (160) (197) Advances from other funds 94 - - 94 Net cash flows from noncapital financing activities 252 320 (160) 412 Cash Flows From Capital and Related Financing Activities Capital grants received 3,249 - - 3,249 Acquisition and construction of property and equipment (3,475) (428) (6) (3,909) Proceeds from sale of property - 6 - 6 Net cash flows from capital and related financing activities (226) (422) (6) (654) Cash Flows From Investing Activities Interest on investments 12 31 30 73 Net increase (decrease) in cash and cash equivalents (11) 125 67 181 Cash and Cash Equivalents, Beginning 100 1,224 1,198 2,522 Cash and Cash Equivalents, Ending 89 $ 1,349 $ 1,265 $ 2,703 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) (417) $ (598) $ 160 $ (855) $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 415 709 32 1,156 Changes in: Receivables: Accounts and unbilled usage 4 1 7 12 Accounts payable (44) 75 4 35 Accrued liabilities (7) 7 (10) (10) Deposits (1) - - (1) Other Post Employment Benefits Obligation 1 2 10 13 Total adjustments 368 794 43 1,205 Net cash flows from operating activities (49) $ 196 $ 203 $ 350 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 68 $ -$ 68 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2009 90 INTERNAL SERVICE FUNDS Internal Service Funds account for goods and services provided by one department to other City departments on a cost-reimbursement basis. The funds in this category are: Equipment Maintenance Fund – accounts for the provision of maintenance for City vehicles and equipment and vehicle rental to other City departments from a central vehicle pool. Central Services Fund – accounts for the support services of photocopying, paper supplies, mail, overnight shipping, and two-way radios provided to other City departments. Loss Reserve Fund – accounts for the property, liability, Workers’ Compensation and health insurance premiums and claims activity for City departments, including the self-insured retention portion. Information Technology Fund – accounts for the accumulation and allocation of costs associated with telecommunications and data processing, including the operation and replacement of equipment. 91 Equipment Central Loss Information Maintenance Services Reserve Technology Total Assets Current assets: Equity in pooled cash and investments 6,721 $ 608 $ 6,979 $ 2,697 $ 17,005 $ Receivables: Interest 47 4 57 20 128 Due from other governments 55 - - - 55 Inventories 332 - - - 332 Total current assets 7,155 612 7,036 2,717 17,520 Noncurrent assets: Capital assets: Land 45 - - - 45 Buildings 578 - - 253 831 Improvements other than buildings 50 - - - 50 Machinery and equipment 11,528 226 8 1,401 13,163 Infrastructure - - - 1,006 1,006 Accumulated depreciation (8,306) (134) (2) (1,442) (9,884) Construction in progress 199 - - - 199 Total noncurrent assets 4,094 92 6 1,218 5,410 Total assets 11,249 704 7,042 3,935 22,930 Liabilities Current liabilities: Accounts payable 175 21 34 31 261 Accrued liabilities 102 3 2,084 91 2,280 Total current liabilities 277 24 2,118 122 2,541 Noncurrent liabilities: Other Post Employment Benefits Obligation (17) 1 (17) 21 (12) Total liabilities 260 25 2,101 143 2,529 Net Assets Invested in capital assets, net of related debt 4,094 92 6 1,218 5,410 Unrestricted 6,895 587 4,935 2,574 14,991 Total net assets 10,989 $ 679 $ 4,941 $ 3,792 $ 20,401 $ (amounts expressed in thousands) CITY OF IOWA CITY COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2009 92 Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services 4,847 $ 344 $ 8,399 $ 1,882 $ 15,472 $ Miscellaneous - - 17 - 17 Total operating revenues 4,847 344 8,416 1,882 15,489 Operating Expenses: Personal services 831 41 152 986 2,010 Commodities 2,004 21 13 223 2,261 Services and charges 423 221 8,786 465 9,895 3,258 283 8,951 1,674 14,166 Depreciation 956 19 1 155 1,131 Total operating expenses 4,214 302 8,952 1,829 15,297 Operating income (loss) 633 42 (536) 53 192 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 45 (1) - - 44 Interest income 148 15 178 72 413 Total nonoperating revenues (expenses) 193 14 178 72 457 Income (loss) before capital contributions and transfers 826 56 (358) 125 649 Capital contributions 4 - - - 4 Transfers in 277 - - - 277 Transfers out - - - (59) (59) Change in net assets 1,107 56 (358) 66 871 Net Assets, Beginning 9,882 623 5,299 3,726 19,530 Net Assets, Ending 10,989 $ 679 $ 4,941 $ 3,792 $ 20,401 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended June 30, 2009 AND CHANGES IN FUND NET ASSETS 93 Equipment Central Loss Information Maintenance Services Reserve Technology Total Cash Flows From Operating Activities Receipts from customers and users 4,964 $ 344 $ 8,416 $ 1,882 $ 15,606 $ Payments to suppliers (2,729) (227) (8,891) (861) (12,708) Payments to employees (831) (39) (80) (956) (1,906) Net cash flows from operating activities 1,404 78 (555) 65 992 Cash Flows From Noncapital Financing Activities Transfers from other funds 277 - - - 277 Operating transfers to other funds - - - (59) (59) Net cash flows from noncapital financing activities 277 - - (59) 218 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (951) (42) - (9) (1,002) Proceeds from sale of property 51 - - 4 55 Net cash flows from capital and related financing activities (900) (42) - (5) (947) Cash Flows From Investing Activities Interest on investments 149 16 188 75 428 Net increase in cash and cash equivalents 930 52 (367) 76 691 Cash and Cash Equivalents, Beginning 5,791 556 7,346 2,621 16,314 Cash and Cash Equivalents, Ending 6,721 $ 608 $ 6,979 $ 2,697 $ 17,005 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) 633 $ 42 $ (536) $ 53 $ 192 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 956 19 1 155 1,131 Changes in: Receivables: Accounts and unbilled usage 3 - - - 3 Due from other governments 114 - - - 114 Inventories (11) - - - (11) Accounts payable (291) 15 (92) (173) (541) Accrued liabilities 17 1 89 9 116 Other Post Employment Benefits Obligation (17) 1 (17) 21 (12) Total adjustments 771 36 (19) 12 800 Net cash flows from operating activities 1,404 $ 78 $ (555) $ 65 $ 992 $ Noncash Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others 4 $ - $ - $ - $ 4 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2009 94 AGENCY FUNDS The Agency Funds account for assets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. The funds in this category are: Project Green Fund – accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. Library Foundation – accounts for donations that are made to support the library development office. 95 Balance Balance July 1, 2008 Increases Decreases June 30, 2009 Project Green Assets Equity in pooled cash and investments 212 $ 67 $ 49 $ 230 $ Interest receivable 2 2 2 2 Total assets 214$ 69 $ 51 $ 232$ Liabilities Due to agency 214$ 69 $ 51 $ 232 $ Total liabilities 214$ 69 $ 51 $ 232$ Library Foundation Assets Equity in pooled cash and investments 4 $ 9 $ 9 $ 4 $ Accounts receivable 5 1 - 6 9$ 10 $ 9$ 10 $ Liabilities Accrued liabilities 9$ 10 $ 9 $ 10 $ Total liabilities 9$ 10 $ 9$ 10 $ Total Agency Funds Assets Equity in pooled cash and investments 216 $ 76 $ 58 $ 234 $ Accounts receivable 5 1 - 6 Interest receivable 2 2 2 2 Total assets 223$ 79 $ 60 $ 242$ Liabilities Accrued liabilities 9$ 10 $ 9 $ 10 $ Due to agency 214 69 51 232 Total liabilities 223$ 79 $ 60 $ 242$ (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended June 30, 2009 AGENCY FUNDS 96 Statistical Section This part of the City of Iowa City’s comprehensive annual financial report represents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Contents Page Financial Trends 99 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity 104 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 114 These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information 124 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information 126 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. The city implemented GASB 34 in FY03; schedules presenting government-wide information include information beginning in that year. 97 98 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 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 $ 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 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 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 $ 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 $ 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 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 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 $ 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 $ 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 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 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 $ (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Y e a r NE T A S S E T S B Y C O M P O N E N T CI T Y O F I O W A C I T Y , I O W A La s t S e v 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 ) 99 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 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 $ 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 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 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 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 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 T o t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 48 , 5 6 0 50 , 0 3 6 55 , 2 1 0 57 , 4 3 1 57 , 6 2 1 60 , 4 9 1 65 , 0 7 1 B u s i n e s s - t y p e a c t i v i t i e s : W a s t e w a t e r 12 , 0 8 6 12 , 3 4 4 12 , 2 1 4 11 , 7 1 0 11 , 5 3 7 11 , 7 5 7 11 , 9 2 5 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 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 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 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 A i r p o r t 43 1 51 5 52 0 51 2 41 8 56 0 69 3 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 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 T o t a l b u s i n e s s - t y p e a c t i v i t i e s e x p e n s e s 35 , 2 2 0 39 , 2 9 1 40 , 5 9 2 39 , 9 5 0 40 , 2 0 6 40 , 9 4 6 42 , 6 8 2 T o t a l p r i m a r y g o v e r n m e n t e x p e n s e s 83 , 7 8 0 $ 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 $ 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 $ 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 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 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 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 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 T o t a l g o v e r n m e n t a l a c t i v i t i e s p r o g r a m r e v e n u e s 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 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 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 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 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 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 A i r p o r t 18 0 21 3 22 0 26 4 23 4 25 8 24 8 S t o r m w a t e r - 10 4 59 2 59 7 62 2 61 6 62 2 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 (c o n t i n u e d ) CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N N E T A S S E T S La s t S e v 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 ) Fi s c a l Y e a r 100 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : W a s t e w a t e r 1, 0 7 7 96 8 76 1 77 3 1, 5 3 9 57 7 26 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 : W a t e r 64 0 45 2 58 8 60 6 84 5 31 4 13 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 : S a n i t a t i o n - - - 46 - - - 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 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S t o r m w a t e r - 71 7 75 5 46 8 1, 2 5 1 30 2 68 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 - C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : P a r k i n g - - - - - 8 - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : H o u s i n g a u t h o r i t y 6, 2 9 1 6, 9 5 0 7, 0 1 2 7, 4 1 4 7, 1 6 5 6, 2 8 1 6, 6 6 8 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : W a t e r 1 3 1 - - - - - 1 5 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : A i r p o r t 3 6 - - - - - 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 a t i o n 2 0 1 9 - 3 6 - 6 0 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 : W a s t e w a 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 p r 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 T o t a l p r i m a r y g o v e r n m e n t r e v e n u e s 52 , 9 1 2 $ 57 , 7 3 7 $ 59 , 4 5 6 $ 57 , 4 9 0 $ 60 , 5 3 1 $ 55 , 6 9 2 $ 65 , 8 8 4 $ 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 ) $ 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 T o t a l p r i m a r y g o v e r n m e n t n e t e x p e n s e (3 0 , 8 6 8 ) $ (3 1 , 5 9 0 ) $ (3 6 , 3 4 6 ) $ (3 9 , 8 9 1 ) $ (3 7 , 2 9 6 ) $ (4 5 , 7 4 5 ) $ (4 1 , 8 6 9 ) $ 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 $ 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 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 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 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 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 ) - 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 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 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 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 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 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 ) 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 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 $ 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 $ 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 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 $ (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A CH A N G E S I N N E T A S S E T S ( c o n t i n u e d ) La s t S e v 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 ) 101 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 Ge n e r a l F u n d R e s e r v e d 1, 0 9 4 $ 3 9 6 $ 3 6 2 $ 5 7 0 $ 5 6 8 $ 4 4 6 $ 5 5 5 $ 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 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 $ Al l o t h e r G o v e r n m e n t a l F u n d s R e s e r v e d 11 , 5 3 6 $ 1 , 6 7 7 $ 2 , 1 9 8 $ 1 , 5 9 2 $ 1 , 9 8 4 $ 3 , 1 0 7 $ 5 , 3 3 9 $ 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 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 ) C a p t a l p r o j e c t s f u n d s 1 , 0 4 7 3 , 8 8 2 6 , 1 4 3 7 , 0 9 3 7 , 8 9 4 1 1 , 1 1 8 1 0 , 9 6 0 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 $ Fi s c a l Y e a r (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 FU N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t S e v 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 ) 102 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 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 $ 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 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 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 U s e o f m o n e y a n d p r o p e r t y 99 7 1 , 0 0 2 1 , 3 5 4 2 , 2 0 3 3 , 3 7 8 3 , 2 0 6 2 , 6 4 5 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 T o t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 5 3 , 3 4 9 $ 5 7 , 5 7 6 $ 6 2 , 2 5 4 $ 6 3 , 1 5 6 $ 6 7 , 4 2 3 $ 6 8 , 2 8 0 $ 7 9 , 8 2 2 $ 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 $ 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 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 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 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 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 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 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 T o t a l e x p e n d i t u r e s 67 , 4 4 7 $ 6 6 , 7 1 2 $ 7 3 , 1 0 3 $ 7 2 , 2 1 0 $ 7 2 , 9 2 8 $ 7 5 , 8 5 0 $ 8 6 , 2 2 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 ) $ Ot h e r f i n a n c i n g s o u r c e s ( u s e s ) : I s s u a n c e o f l o n g - t e r m d e b t 10 , 6 0 0 $ 1 2 , 8 7 5 $ 7 , 0 2 0 $ 7 , 2 6 5 $ 8 , 8 7 0 $ 9 , 1 5 0 $ 3 0 , 0 3 5 $ 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 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 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 ) (2 3 , 1 4 0 ) 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 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 ) 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 $ 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 $ 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 % Fi s c a l Y e a r (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 F U N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t S e v 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 ) 103 CITY OF IOWA CITY, IOWA GENERAL GOVERNMENT TAX REVENUES BY SOURCE Last Ten Fiscal Years (Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Property Tax Road Use Tax Hotel/Motel Tax Total 2000 24,271 4,928 554 29,753 2001 27,071 4,852 497 32,420 2002 28,623 5,077 646 34,346 2003 31,966 5,103 559 37,628 2004 34,958 5,311 580 40,849 2005 36,076 5,269 611 41,956 2006 38,336 5,303 674 44,313 2007 42,221 5,305 683 48,209 2008 44,101 5,432 734 50,267 2009 47,861 5,254 713 53,828 104 CITY OF IOWA CITY, IOWA ASSESSED AND TAXABLE VALUE OF PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Taxable Property Total Taxable Total Year Ended Assessed Value/ Exempt Assessed Direct June 30 Estimated Actual Value 1 Property Value 2 Value Tax Rate 2000 2,699,944 136,493 2,563,451 13.851 2001 2,920,580 137,713 2,782,867 14.757 2002 2,975,254 152,991 2,822,263 14.850 2003 3,214,973 155,407 3,059,566 16.813 2004 3,322,001 176,188 3,145,813 17.596 2005 3,834,435 181,186 3,653,249 17.314 2006 3,953,781 183,799 3,769,982 17.729 2007 4,280,834 212,203 4,068,631 17.302 2008 4,365,626 215,955 4,149,671 17.297 2009 4,424,355 217,904 4,206,451 17.717 Sources: 1Johnson County Abstract Assessment 2City of Iowa City Assessor's Office - Annual Report Notes: Property is reassessed in the odd numbered years to make adjustments to all property values, according to current market values. As per the Code of Iowa, all real and tangible personal property subject to taxation shall be valued at its actual value and, except as otherwise provided, shall be reassessed at 100% of its actual value, and the value so assessed shall be taken and societies, low-rent housing and associations for war veterans. Each must apply for property tax exempt status with the City Assessor, who determines if the property qualifies under state guidelines. Exempt property is assessed each year like other taxable property. Property owned by governmental entities is not taxable and is not included in “Exempt Property". considered as the assessed value and taxable value of the property upon which the levy shall be made. Taxable property includes real property, buildings and structures, industrial plant and fixtures, commercial equipment assessed as real property, agriculture, residential on agriculture, and utilities distribution property. Exempt property includes all property that is owned by religious and educational institutions, charitable and benevolent 105 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 (p e r $ 1 , 0 0 0 a s s e s s e d v a l u a t i o n ) To t a l Io w a C i t y K i r k w o o d D i r e c t & Fi s c a l O p e r a t i n g D e b t S e r v i c e T o t a l C i t y J o h n s o n S c h o o l C o mm 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 0 1 1 . 5 5 1 2 . 3 0 0 1 3 . 8 5 1 5 . 9 4 7 1 1 . 6 9 6 0 . 6 1 3 0 . 0 0 5 3 2 . 1 1 2 20 0 1 1 1 . 7 6 7 2 . 9 9 0 1 4 . 7 5 7 5 . 9 0 1 1 1 . 8 3 3 0 . 6 0 7 0 . 0 0 5 3 3 . 1 0 3 20 0 2 1 1 . 9 0 5 2 . 9 4 5 1 4 . 8 5 0 5 . 8 0 2 1 1 . 5 4 0 0 . 6 0 7 0 . 0 0 5 3 2 . 8 0 4 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 6 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 . 9 3 1 3 . 7 8 6 1 7 . 7 1 7 7 . 8 0 3 1 4 . 1 9 2 0 . 8 5 2 0 . 0 0 4 4 0 . 5 6 8 20 0 9 1 4 . 2 1 6 3 . 6 3 7 1 7 . 8 5 3 7 . 7 0 8 1 4 . 1 9 1 0 . 8 4 0 0 . 0 0 3 4 0 . 5 9 5 So u r c e : " T a x L e v i e s f o r J o h n s o n C o u n t y , I o w a , " c o m p i l e d b y t h e J o h n s o n C o u n t y A u d i t o r . O n w e b J o h n s o n - c o u n t y . c o m D e p t s / A u d i t o r / R e al E s t a t e No t e : 1 In c l u d e s J o h n s o n C o u n t y , C i t y o f I o w a C i t y A s s e s s o r , a n d A g r i c ul 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 106 Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections Collections 2000 23,945 $ 23,989 $ 100.2 5$ 23,994 $ 100.2 % 2001 26,089 25,684 98.4 31 25,715 98.6 2002 27,920 28,423 101.8 5 28,428 101.8 2003 31,975 31,863 99.6 16 31,879 99.7 2004 34,073 34,009 99.8 23 34,032 99.9 2005 34,403 34,814 101.2 15 34,829 101.2 2006 36,460 36,654 100.5 44 36,698 100.7 2007 39,094 38,947 99.6 13 38,960 99.7 2008 39,973 39,768 99.5 70 39,838 99.7 2009 43,168 43,118 99.9 18 43,136 99.9 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: Collection of Delinquent Taxes not available by levy year. Presented in year collected. CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Percent of Levy Collected Total as a Percent of Levy 107 20 0 0 2 0 0 9 % o f T o t a l % o f T o t a l Ta x a b l e A s s e s s e d T a x a b l e A s s e s s e d Te n l a r g e s t t a x p a y e r s 1 Ty p e o f B u s i n e s s Va l u a t i o n Ra n k Va l u a t i o n Va l u a t i o n Ra n k Va l u a t i o n Mi d - A m e r i c a n E n e r 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 , 2 5 7 $ 1 1 . 7 4 % 45 , 0 4 8 $ 1 1 . 0 3 % AC T I n c . ( f o r m e r l y A m e r i c a n C o l l e g e T e s t i n g P r o g r a m ) E d u c a t i o n a l T e s t i n g S e r v i c e 1 7 , 4 4 7 6 0 . 6 7 4 4 , 4 3 5 2 1 . 0 2 So u t h g a t e D e v e l o p m e n t C o m p a n y R e a l E s t a t e D e v e l o p e r 2 0 , 20 4 4 0 . 7 8 2 0 , 2 6 5 3 0 . 4 6 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 1 6 , 9 3 9 4 0 . 3 9 NC S P e a r s o n I n f o r m a t i o n S e r v i c e s 1 6 , 1 2 9 7 0 . 6 2 1 6 , 4 3 0 5 0 . 3 8 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 - - N / A 1 4 , 9 5 4 6 0 . 3 4 Pl a z a T o w e r s L L C / M e r i s t a r C o n d o / H o t e l / C o m m e r c i a l s p a c e 13 , 1 9 8 9 0 . 5 1 1 4 , 1 6 8 7 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 3 , 0 9 5 8 0 . 3 0 Pr o c t o r & G a m b l e L L C M a n u f a c t u r i n g C o m p a n y 2 2 , 1 1 6 3 0 . 8 5 1 2 , 6 8 8 9 0 . 2 9 Al p h a I n c In d u s t r i a l - - N / A 1 1 , 7 1 5 1 0 0 . 2 7 Ja m e A C l a r k A p a r t m e n t s 23 , 9 7 1 2 0 . 9 2 - - N / A He i t m a n P r o p e r t i e s S h o p p i n g C e n t e r 1 9 , 7 9 3 5 0 . 7 6 - - N / A Hy - V e e Gr o c e r y S t o r e s 13 , 4 9 6 8 0 . 5 2 - - N / A Ed w i n a n d 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 11 , 5 6 7 1 0 0 . 4 5 - - N / A To t a l 20 3 , 1 7 8 $ 7. 8 2 % 20 9 , 7 3 7 $ 4. 8 0 % So u r c e s : 1 Ci t y o f I o w a C i t y A s s e s s o r ' s O f f i c e - 2 0 0 4 A n n u a l R e p o r t - A s s e s s m e n t J a n u a r y 1 , 2 0 0 4 - P a y a b l e 2 0 0 6 2 St a t e D e p a r t m e n t o f R e v e n u e PR I N C I P A L T A X P A Y E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) CI T Y O F I O W A C I T Y , I O W A 108 109 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 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 38 7 , 7 8 6 $ 1 4 . 8 1 % 6 2 4 , 4 8 3 $ 1 8 . 3 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 7 4 , 5 3 8 2 2 . 1 6 9 1 , 5 2 9 2 1 . 2 2 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 7 , 1 2 1 6 0 . 8 3 9 0 , 3 3 0 3 1 . 2 0 Me r c y H o s p i t a l 74 , 9 4 2 4 0 . 9 3 7 1 , 6 2 2 4 0 . 9 6 Ca m p u s A p a r t m e n t s - - N / A 6 6 , 6 0 0 5 0 . 8 9 Ro b e r t ' s D a i r y 60 , 0 6 8 7 0 . 7 4 6 3 , 5 1 7 6 0 . 8 5 Ma r k I V A p t s 56 , 1 3 8 8 0 . 7 0 5 3 , 2 7 3 7 0 . 7 1 Sh e r a t o n I n n 47 , 9 1 7 9 0 . 5 9 3 5 , 8 0 6 8 0. 4 8 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 7 1 , 1 4 5 5 0 . 8 8 3 7 , 8 4 3 9 0 . 5 0 Se v i l l e A p t s - - N / A 3 1 , 8 8 5 1 0 0 . 4 3 Le a r C o r p o r a t i o n 76 , 2 4 8 3 0 . 9 5 - - N / A Re l e a s e I n t e r n a t i o n a l 45 , 4 0 9 1 0 0 . 5 6 - - N / A 1, 0 6 1 , 3 1 2 $ 13 . 1 5 % 1, 1 6 6 , 8 8 8 $ 15 . 5 7 % To t a l W a t e r S y s t e m C h a r g e s 8 , 4 1 4 , 3 1 0 $ 7, 4 9 7 , 9 0 3 $ 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 De c e m b e r 2 0 0 0 W a t e r R e v e n u e B o n d T r a n s c r i p t O f f i c a l S ta t e m e n t 20 0 0 20 0 9 110 Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2000 N/A N/A 2001 245,725,159 $8,837,339 2002 253,409,874 9,049,700 2003 257,788,030 9,308,824 2004 253,454,012 8,850,608 2005 254,560,239 8,315,719 2006 267,107,998 8,844,993 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 Sources: Sources: City of Iowa City Revenue Department Notes: N/A Not available CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years 111 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 3 7 , 1 3 5 $ 1 2 0 . 0 4 % 1, 9 5 3 , 3 2 5 $ 1 1 5 . 6 3 % Pr o c t o r & G a m b l e 82 1 , 7 7 7 2 7 . 7 1 1 , 4 4 3 , 6 5 2 2 1 1 . 5 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 9 1 , 1 9 6 6 0 . 8 6 1 6 3 , 7 7 6 3 1 . 3 1 Ro b e r t ' s D a i r y 11 3 , 4 3 4 4 1 . 0 6 1 5 5 , 1 9 2 4 1 . 2 4 Me r c y H o s p i t a l 84 , 0 1 4 7 0 . 7 9 1 2 2 , 7 3 7 5 0 . 9 8 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 9 2 , 3 1 8 6 0 . 7 4 Ca m p u s A p a r t m e n t s 52 , 9 0 2 1 0 0 . 5 0 9 1 , 8 8 9 7 0 . 7 4 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 9 5 , 9 5 1 3 1 . 8 4 8 8 , 2 0 4 8 0 . 7 1 Ma r k I V A p a r t m e n t s 59 , 4 0 5 9 0. 5 6 7 3 , 9 8 7 9 0. 5 9 Sh e r a t o n I o w a C i t y H o t e l - - N / A 6 2 , 6 9 8 1 0 0 . 5 0 Un i t e d T e c h A u t o 10 6 , 7 0 3 5 1 . 0 0 - - N / A Re l e a s e I n t e r n a t i o n a l 63 , 1 0 6 8 0 . 5 9 - - N / A 3, 7 2 5 , 6 2 3 $ 34 . 9 5 % 4, 2 4 7 , 7 7 8 $ 33 . 9 9 % To t a l S e w e r S y s t e m C h a r g e s 1 1 , 0 8 4 , 3 6 9 $ 12 , 4 9 9 , 9 4 9 $ So u r c e s : Ci t y o f I o w a C i t y R e v e n u e D e p a r t m e n t Oc t o b e r 2 0 0 0 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 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 20 0 9 20 0 0 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 112 Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2000 N/A N/A 2001 299,381,463 $11,111,313 2002 292,323,306 11,431,949 2003 297,084,229 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 Sources: Sources: City of Iowa City Revenue Department Notes: N/A Not available CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years 113 Ge n e r a l C a p i t a l G e n e r a l T o t a l P e r c e n t a g e Fi s c a l O b l i g a t i o n L o a n O b l i g a t i o n R e v e n u e P r i m a r y o f P e r s o na l P e r Ye a r Bo n d s No t e Bo n d s Bo n d s Go v e r n m e n t In c o m e 1 Ca p i t a 1 20 0 0 2 4 , 3 6 3 , 3 2 9 $ 6 5 , 0 0 0 $ 1 6 , 7 6 1 , 6 7 1 $ 8 9 , 3 7 5 , 0 0 0 $ 1 3 0 , 5 6 5 , 0 0 0 $ 3 . 4 2 % 2 , 1 7 1 $ 20 0 1 4 6 , 6 9 7 , 3 4 3 1 4 , 8 6 7 , 6 5 7 1 1 1 , 2 4 5 , 0 0 0 1 7 2 , 8 1 0 , 0 0 0 4 . 3 9 % 2 , 7 7 7 20 0 2 7 2 , 1 9 8 , 6 5 2 1 3 , 0 6 1 , 3 4 8 1 4 1 , 4 1 0 , 0 0 0 2 2 6 , 6 7 0 , 0 0 0 5 . 5 6 % 3 , 6 4 3 20 0 3 7 1 , 6 4 1 , 1 6 9 1 1 , 3 5 8 , 8 3 1 1 2 0 , 3 1 0 , 0 0 0 2 0 3 , 3 1 0 , 0 0 0 4 . 8 4 % 3 , 2 5 9 20 0 4 7 9 , 3 4 4 , 6 0 0 9 , 6 4 0 , 4 0 0 1 1 5 , 7 1 0 , 0 0 0 2 0 4 , 6 9 5 , 0 0 0 4 . 5 5 % 3 , 2 8 1 20 0 5 7 7 , 0 1 5 , 3 7 9 2 1 1 , 0 0 0 8 , 2 7 4 , 6 2 2 1 1 0 , 9 3 0 , 0 0 0 1 9 6 , 4 3 1 , 0 0 1 4 . 2 1 % 3 , 1 4 9 20 0 6 7 8 , 1 8 1 , 1 5 5 2 1 1 , 0 0 0 6 , 8 7 8 , 8 4 5 1 0 5 , 9 1 5 , 0 0 0 1 9 1 , 1 8 6 , 0 0 0 3 . 8 9 % 3 , 0 4 0 20 0 7 8 0 , 3 5 0 , 6 3 0 2 1 1 , 0 0 0 5 , 4 8 9 , 3 7 0 1 0 0 , 7 6 0 , 0 0 0 1 8 6 , 8 1 1 , 0 0 0 3 . 5 2 % 2 , 7 8 6 20 0 8 8 2 , 1 7 7 , 3 9 5 2 1 1 , 0 0 0 4 , 9 1 2 , 6 0 5 9 5 , 3 4 5 , 0 0 0 1 8 2 , 6 4 6 , 0 0 0 3 . 2 7 % 2 , 6 9 3 20 0 9 8 0 , 6 5 4 , 1 6 0 2 1 1 , 0 0 0 4 , 3 4 0 , 8 4 0 8 7 , 8 1 5 , 0 0 0 1 7 3 , 0 2 1 , 0 0 0 2 . 9 5 % 2 , 5 5 1 No t e s : De t a i l s r e g a r d i n g t h e c i t y ' s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e n o t e s t o t h e f i n a n c i a l s t a t e m e n t s 1 P o p u l a t i o n a n d p e r s o n a l i n c o m e i n f o r m a t i o n c a n b e fo u n d o n p a g e 1 2 4 . 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 114 CI T Y O F I O W A C I T Y , I O W A RA T I O S O F G E N E R A L O B L I G A T I O N B O N D E D D E B T 1 TO A S S E S S E D V A L U E A N D N E T B O N D E D D E B T P E R C A P I T A La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s , e x c e p t p e r c a p i t a ) P r o p e r t y D e b t N e t G e n e r a l R a t i o o f N e t N e t B o n d e d Fi s c a l A s s e s s e d G r o s s P a y a b l e f r o m D e b t S e r v i c e O b l i g a t i o n B on d e d D e b t t o D e b t Ye a r Va l u e 2 Bo n d e d D e b t Pr o p r i e t a r y Fu n d B a l a n c e Bo n d e d D e b t As s e s s e d V a l u e Pe r C a p i t a 3 20 0 0 2 , 6 9 9 , 9 4 4 $ 4 1 , 1 9 0 $ 1 6 , 7 6 2 $ 1 9 2 $ 2 4 , 2 3 6 $ 8 . 9 8 : 1 0 0 0 4 0 3 $ 20 0 1 2 , 9 2 0 , 5 8 0 6 1 , 5 6 5 1 4 , 8 6 8 4 9 4 4 6 , 2 0 3 1 5 . 8 2 : 1 0 0 0 7 4 3 20 0 2 2 , 9 7 5 , 2 5 4 8 5 , 2 6 0 1 3 , 0 6 1 4 6 4 7 1 , 7 3 5 2 4 . 1 1 : 1 0 0 0 1 , 1 5 3 20 0 3 3 , 2 1 4 , 9 7 3 8 3 , 0 0 0 1 1 , 3 5 9 4 , 4 4 8 6 7 , 1 9 3 2 0 . 9 0 : 1 0 0 0 1 , 0 7 7 20 0 4 3 , 3 2 2 , 0 0 1 8 5 , 0 8 5 9 , 6 4 0 6 , 9 3 0 6 8 , 5 1 5 2 0 . 6 2 : 1 0 0 0 1 , 0 9 8 20 0 5 3 , 8 3 4 , 4 3 5 8 5 , 2 9 0 8 , 2 7 5 3 , 0 6 7 7 3 , 9 4 8 1 9 . 2 9 : 1 0 0 0 1 , 1 8 5 20 0 6 3 , 9 5 3 , 7 8 1 8 5 , 0 6 0 6 , 8 7 9 2 , 7 2 5 7 5 , 4 5 6 1 9 . 0 8 : 1 0 0 0 1 , 2 0 0 20 0 7 4 , 2 8 0 , 8 3 4 8 5 , 8 4 0 5 , 4 8 9 4 , 2 8 9 7 6 , 0 6 2 1 7 . 7 7 : 1 0 0 0 1 , 1 3 4 20 0 8 4 , 3 6 5 , 6 2 6 8 7 , 0 9 0 4 , 9 1 3 8 , 6 9 1 7 3 , 4 8 6 1 6 . 8 3 : 1 0 0 0 1 , 0 8 3 20 0 9 4 , 4 2 4 , 3 5 5 8 4 , 9 9 5 4 , 3 4 1 1 1 , 7 5 9 6 8 , 8 9 5 1 5 . 5 7 : 1 0 0 0 1 , 0 1 6 No t e s : 1 Ge n e r a l O b l i g a t i o n b o n d s . 2 Ob t a i n e d f r o m t h e C i t y o f I o w a C i t y A s s e s s o r ' s O f f i c e. 3 Po p u l a t i o n d a t a c a n b e f o u n d o n p a g e 1 2 4 . 115 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 2000 2,918$ 1,360$ 4,278$ 52,727$ .08 : 1.00 2001 3,541 1,763 5,304 53,898 .10 : 1.00 2002 3,599 2,136 5,735 53,462 .11 : 1.00 20032 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 Notes: 1 General Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. 116 CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2009 (amounts expressed in thousands, except per capita) Amount Total General % Applicable Applicable Long-Term to the to the Name of Bonded Debt City of City of Governmental Unit Outstanding Iowa City Iowa City Per Capita City of Iowa City 84,995 $ 100.00% 84,995 $ 1,253 $ Iowa City Community School District 26,690 59.85% 15,974 235 Total 111,685 $ 100,969 $ 1,489 $ Per capita assessed value 64,360 $ 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. 117 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 De b t L i m i t 1 2 1 , 1 7 8 $ 1 2 9 , 8 9 1 $ 1 3 4 , 9 9 7 $ 1 4 6 , 0 2 9 $ 1 4 8 , 7 6 3 $ 1 6 0 , 7 4 9 $ 1 8 6 , 6 3 0 $ 1 9 1 , 7 2 2 $ 1 9 7 , 6 8 9 $ 2 1 4 , 0 4 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 4 1 , 1 9 0 6 1 , 5 6 5 8 5 , 2 6 0 8 3 , 0 0 0 8 5 , 0 8 5 8 5 , 2 9 0 8 5 , 0 6 0 8 5 , 8 4 0 8 7 , 0 9 0 8 4 , 9 9 5 Le g a l d e b t m a r g i n 7 9 , 9 8 8 $ 6 8 , 3 2 6 $ 4 9 , 7 3 7 $ 6 3 , 0 2 9 $ 6 3 , 6 7 8 $ 7 5 , 4 5 9 $ 1 0 1 , 5 7 0 $ 1 0 5 , 8 8 2 $ 1 1 0 , 5 9 9 $ 1 2 9 , 0 4 7 $ To t a l n e t d e b t a p p l i c a b l e t o t h e l i m i t a s a p e r c e n t a g e o f d e b t l i m i t 3 3 . 9 9 % 4 7 . 4 0 % 6 3 . 1 6 % 5 6 . 8 4 % 5 7 . 2 0 % 5 3 . 0 6 % 4 5 . 58 % 4 4 . 7 7 % 4 4 . 0 5 % 3 9 . 7 1 % 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 1 4 , 0 4 1 , 69 3 Le s s : A m o u n t o f D e b t A p p l i c a b l e t o D e b t L i m i t 8 4 , 9 9 5, 0 0 0 Le g a l D e b t M a r g i n No t e : U n d e r I o w a c o d e , t h e c i t y ' s o u t s t a n d i n g g e n e r a l o b 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 . 12 9 , 0 4 6 , 6 9 3 $ Fi s c a l Y e a r Le g a l D e b t M a r g i n C a l c u l a t i o n f o r F i s c a l Y e a r 2 0 0 9 4, 2 8 0 , 8 3 3 , 8 5 7 $ CI T Y O F I O W A C I T Y , I O W A LE G A L D E B T M A R G I N I N F O R M A T I O N La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) 118 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 F i s c a l Ye a r 20 0 9 1 32 , 1 3 0 , 0 0 0 $ 3 , 5 4 5 , 7 9 8 $ 3 5 , 6 7 5 , 7 9 8 $ 1 3 , 2 2 4 , 4 6 2 $ 6 7 1 , 7 5 3 $ 7 5 3 , 2 5 8 $ 8 7 , 0 9 0 , 0 0 0 $ 20 1 0 9 , 9 4 5 , 0 0 0 3 , 2 2 5 , 7 5 6 1 3 , 1 7 0 , 7 5 6 1 1 , 7 4 9 , 9 1 5 6 6 8 , 5 5 3 7 5 2 , 2 8 8 8 4 , 9 9 5 , 0 0 0 20 1 1 1 0 , 1 7 5 , 0 0 0 2 , 8 9 6 , 8 8 4 1 3 , 0 7 1 , 8 8 4 1 1 , 6 5 6 , 9 2 2 6 6 9 , 9 5 3 7 4 5 , 0 0 9 7 5 , 0 5 0 , 0 0 0 20 1 2 1 0 , 5 0 0 , 0 0 0 2 , 5 4 6 , 9 7 6 1 3 , 0 4 6 , 9 7 6 1 1 , 6 3 5 , 8 9 4 6 6 8 , 9 7 8 7 4 2 , 1 0 4 6 4 , 8 7 5 , 0 0 0 20 1 3 9 , 4 9 5 , 0 0 0 2 , 1 7 9 , 5 2 6 1 1 , 6 7 4 , 5 2 6 1 0 , 2 6 9 , 9 7 6 6 6 6 , 4 0 3 7 3 8 , 1 4 7 5 4 , 3 7 5 , 0 0 0 20 1 4 9 , 1 9 5 , 0 0 0 1 , 8 4 3 , 9 2 1 1 1 , 0 3 8 , 9 2 1 9 , 6 6 2 , 2 5 4 6 6 8 , 1 1 5 7 0 8 , 5 5 2 4 4 , 8 8 0 , 0 0 0 20 1 5 8 , 8 0 5 , 0 0 0 1 , 4 9 2 , 7 4 6 1 0 , 2 9 7 , 7 4 6 8 , 9 2 6 , 1 8 1 6 6 8 , 8 7 8 7 0 2 , 6 8 7 3 5 , 6 8 5 , 0 0 0 20 1 6 7 , 8 2 5 , 0 0 0 1 , 1 5 2 , 1 5 1 8 , 9 7 7 , 1 5 1 7 , 9 8 6 , 3 3 6 6 7 3 , 6 9 0 3 1 7 , 1 2 5 2 6 , 8 8 0 , 0 0 0 20 1 7 6 , 2 2 5 , 0 0 0 8 4 4 , 8 4 6 7 , 0 6 9 , 8 4 6 6 , 0 8 6 , 6 9 3 6 7 7 , 0 9 0 3 0 6 , 0 6 3 1 9 , 0 5 5 , 0 0 0 20 1 8 5 , 0 7 0 , 0 0 0 5 9 9 , 9 9 6 5 , 6 6 9 , 9 9 6 4 , 9 9 1 , 0 6 2 6 7 8 , 9 3 4 - 1 2 , 8 3 0 , 0 0 0 20 1 9 2 , 5 7 0 , 0 0 0 3 8 7 , 0 3 4 2 , 9 5 7 , 0 3 4 2 , 2 7 7 , 6 0 0 6 7 9 , 4 3 4 - 7 , 7 6 0 , 0 0 0 20 2 0 1 , 9 0 0 , 0 0 0 2 6 6 , 1 8 4 2 , 1 6 6 , 1 8 4 1 , 4 8 3 , 0 0 0 6 8 3 , 1 8 4 - 5 , 1 9 0 , 0 0 0 20 2 1 2 , 0 0 5 , 0 0 0 1 7 0 , 4 9 0 2 , 1 7 5 , 4 9 0 1 , 4 8 5 , 7 5 0 6 8 9 , 7 4 0 - 3 , 2 9 0 , 0 0 0 20 2 2 6 2 5 , 0 0 0 6 8 , 7 6 5 6 9 3 , 7 6 5 - 6 9 3 , 7 6 5 - 1 , 2 8 5 , 0 0 0 20 2 3 6 6 0 , 0 0 0 3 5 , 6 4 0 6 9 5 , 6 4 0 - 6 9 5 , 6 4 0 - 6 6 0 , 0 0 0 To t a l 1 1 7 , 1 2 5 , 0 0 0 $ 2 1 , 2 5 6 , 7 1 3 $ 1 3 8 , 3 8 1 , 7 1 3 $ 1 0 1 , 4 3 6 , 0 4 5 $ 1 0 , 1 5 4 , 1 1 0 $ 5 , 7 6 5 , 2 3 3 $ 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 0 9 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 O c t o b e r 2 0 0 8 a n d J u n e 2 0 0 9. 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 119 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 2000 3,716 $ 1,861 $ 1,855 $ 455 $ 139 $ 594 $ 3.12 2001 4,309 2,176 2,133 485 836 1,321 1.61 2002 4,272 1,960 2,312 510 746 1,256 1.84 2003 4,198 1,953 2,245 375 715 1,090 2.06 2004 4,164 2,319 1,845 395 687 1,082 1.71 2005 4,360 2,377 1,983 305 663 968 2.05 2006 4,161 2,380 1,781 320 645 965 1.85 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 Wastewater Treatment Revenue 4 2000 11,872 $ 3,259 $ 8,613 $ 2,160 $ 3,691 $ 5,851 $ 1.47 2001 12,824 3,248 9,576 2,505 3,589 6,094 1.57 2002 12,501 3,389 9,112 3,005 4,236 7,241 1.26 2003 13,000 4,463 8,537 3,060 4,385 7,445 1.15 2004 12,947 4,523 8,424 3,280 3,672 6,952 1.21 2005 12,600 4,432 8,168 3,630 3,537 7,167 1.14 2006 12,798 4,260 8,538 3,815 3,390 7,205 1.19 2007 13,708 4,236 9,472 3,905 3,234 7,139 1.33 2008 13,332 4,581 8,751 4,105 3,071 7,176 1.22 2009 6 13,462 5,202 8,260 4,260 2,813 7,073 1.17 Water Revenue 5 2000 9,626 $ 3,384 $ 6,242 $ - $ 299 $ 299 $ 20.88 2001 10,629 3,410 7,219 140 445 585 12.34 2002 10,179 3,428 6,751 705 1,175 1,880 3.59 2003 10,241 4,361 5,880 500 1,088 1,588 3.70 2004 10,627 4,360 6,267 925 1,427 2,352 2.66 2005 9,287 4,783 4,504 845 1,340 2,185 2.06 2006 9,918 5,722 4,196 880 1,305 2,185 1.92 2007 9,220 5,356 3,864 915 1,268 2,183 1.77 2008 9,258 5,348 3,910 955 1,229 2,184 1.79 2009 6 8,833 5,726 3,107 995 1,171 2,166 1.43 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) 120 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 n u e W at 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 0 9 1 57 , 3 3 5 , 0 0 0 $ 4 , 5 6 8 , 2 9 9 $ 6 1 , 9 0 3 , 2 9 9 $ 7 , 0 7 2 , 6 0 9 $ 9 5 4 , 2 9 8 $ 2 , 1 6 6 , 3 9 2 $ 9 5 , 3 4 5 , 0 0 0 $ 20 1 0 5 , 2 7 5 , 0 0 0 3 , 9 2 4 , 0 3 8 9 , 1 9 9 , 0 3 8 6 , 5 1 2 , 4 6 9 9 5 1 , 9 7 3 1 , 7 3 4 , 5 9 6 8 7 , 8 1 5 , 0 0 0 20 1 1 6 , 2 4 0 , 0 0 0 3 , 4 7 2 , 3 8 9 9 , 7 1 2 , 3 8 9 6 , 7 5 1 , 9 4 5 9 4 8 , 4 7 3 2 , 0 1 1 , 9 7 1 8 2 , 5 4 0 , 0 0 0 20 1 2 6 , 5 7 5 , 0 0 0 3 , 2 3 1 , 3 5 2 9 , 8 0 6 , 3 5 2 6 , 8 0 1 , 1 4 5 9 4 3 , 7 9 8 2 , 0 6 1 , 4 0 9 7 6 , 3 0 0 , 0 0 0 20 1 3 6 , 7 9 5 , 0 0 0 2 , 9 7 5 , 8 4 9 9 , 7 7 0 , 8 4 9 6 , 7 6 5 , 1 9 3 9 4 2 , 8 0 1 2 , 0 6 2 , 8 5 5 6 9 , 7 2 5 , 0 0 0 20 1 4 5 , 0 3 5 , 0 0 0 2 , 7 4 6 , 0 7 5 7 , 7 8 1 , 0 7 5 4 , 7 7 3 , 9 3 4 9 4 0 , 3 3 5 2 , 0 6 6 , 8 0 6 6 2 , 9 3 0 , 0 0 0 20 1 5 5 , 2 4 5 , 0 0 0 2 , 5 4 2 , 8 1 1 7 , 7 8 7 , 8 1 1 4 , 7 8 3 , 6 1 5 9 3 6 , 4 0 1 2 , 0 6 7 , 7 9 5 5 7 , 8 9 5 , 0 0 0 20 1 6 5 , 4 8 0 , 0 0 0 2 , 3 2 3 , 5 7 8 7 , 8 0 3 , 5 7 8 4 , 8 0 1 , 9 5 9 9 3 5 , 8 5 1 2 , 0 6 5 , 7 6 8 5 2 , 6 5 0 , 0 0 0 20 1 7 5 , 7 0 5 , 0 0 0 2 , 0 8 7 , 1 5 3 7 , 7 9 2 , 1 5 3 4 , 7 9 3 , 1 5 5 9 3 3 , 4 6 8 2 , 0 6 5 , 5 3 0 4 7 , 1 7 0 , 0 0 0 20 1 8 5 , 9 7 5 , 0 0 0 1 , 8 3 5 , 0 6 4 7 , 8 1 0 , 0 6 4 4 , 8 0 4 , 6 8 3 9 3 4 , 1 0 0 2 , 0 7 1 , 2 8 1 4 1 , 4 6 5 , 0 0 0 20 1 9 6 , 2 2 0 , 0 0 0 1 , 5 6 7 , 9 1 0 7 , 7 8 7 , 9 1 0 4 , 7 9 1 , 6 0 8 9 2 7 , 8 1 5 2 , 0 6 8 , 4 8 7 3 5 , 4 9 0 , 0 0 0 20 2 0 6 , 5 3 5 , 0 0 0 1 , 2 7 4 , 1 5 7 7 , 8 0 9 , 1 5 7 4 , 8 0 7 , 1 7 3 9 2 9 , 4 6 5 2 , 0 7 2 , 5 1 9 2 9 , 2 7 0 , 0 0 0 20 2 1 6 , 3 2 0 , 0 0 0 9 6 4 , 3 9 1 7 , 2 8 4 , 3 9 1 4 , 2 8 3 , 6 8 8 9 2 8 , 4 0 0 2 , 0 7 2 , 3 0 3 2 2 , 7 3 5 , 0 0 0 20 2 2 5 , 0 2 5 , 0 0 0 6 8 8 , 3 5 6 5 , 7 1 3 , 3 5 6 2 , 7 1 7 , 2 8 8 9 2 4 , 6 0 0 2 , 0 7 1 , 4 6 8 1 6 , 4 1 5 , 0 0 0 20 2 3 3 , 8 8 5 , 0 0 0 4 6 9 , 6 6 0 4 , 3 5 4 , 6 6 0 1 , 3 6 1 , 2 5 0 9 2 3 , 2 5 0 2 , 0 7 0 , 1 6 0 1 1 , 3 9 0 , 0 0 0 20 2 4 2 , 8 7 0 , 0 0 0 3 0 1 , 1 4 7 3 , 1 7 1 , 1 4 7 7 9 3 , 2 5 0 9 2 4 , 0 5 0 1 , 4 5 3 , 8 4 7 7 , 5 0 5 , 0 0 0 20 2 5 3 , 0 2 5 , 0 0 0 1 5 2 , 5 8 1 3 , 1 7 7 , 5 8 1 7 9 7 , 2 5 0 9 2 1 , 8 5 0 1 , 4 5 8 , 4 8 1 4 , 6 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 1 4 5 , 1 5 0 , 0 0 0 $ 3 5 , 1 6 2 , 9 7 3 $ 1 8 0 , 3 1 2 , 9 7 3 $ 7 8 , 2 0 6 , 5 8 9 $ 1 5 , 9 0 0 , 9 2 8 $ 3 4 , 4 9 5 , 4 5 6 $ 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 0 9 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 b o n d s i s s u e d O c t o be r 2 0 0 8 a n d M a y 2 0 0 9 . Pa y m e n t s Fu n d i n g S o u r c e ( s ) CI T Y O F I O W A C I T Y , I O W A RE V E N U E D E B T A N N U A L M A T U R I T Y S C H E D U L E 121 Fiscal Year Principal Interest Total 2009 370,000 $ 584,298 $ 954,298 $ 2010 390,000 561,973 951,973 2011 410,000 538,473 948,473 2012 430,000 513,798 943,798 2013 455,000 487,801 942,801 2014 480,000 460,335 940,335 2015 505,000 431,401 936,401 2016 535,000 400,851 935,851 2017 565,000 368,468 933,468 2018 600,000 334,100 934,100 2019 630,000 297,815 927,815 2020 670,000 259,465 929,465 2021 710,000 218,400 928,400 2022 750,000 174,600 924,600 2023 795,000 128,250 923,250 2024 845,000 79,050 924,050 2025 895,000 26,850 921,850 Total 10,035,000 $ 5,865,928 $ 15,900,928 $ Fiscal Year Principal Interest Total 2009 1 4,260,000 $ 2,812,609 $ 7,072,609 $ 2010 4,205,000 2,307,469 6,512,469 2011 4,720,000 2,031,945 6,751,945 2012 4,945,000 1,856,145 6,801,145 2013 5,095,000 1,670,193 6,765,193 2014 3,260,000 1,513,934 4,773,934 2015 3,395,000 1,388,615 4,783,615 2016 3,550,000 1,251,959 4,801,959 2017 3,690,000 1,103,155 4,793,155 2018 3,860,000 944,683 4,804,683 2019 4,015,000 776,608 4,791,608 2020 4,220,000 587,173 4,807,173 2021 3,895,000 388,688 4,283,688 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 59,030,000 $ 19,176,589 $ 78,206,589 $ (continued) Outstanding Sewer Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Parking 122 Fiscal Year Principal Interest Total 2009 1 995,000 $ 1,171,392 $ 2,166,392 $ 2010 680,000 1,054,596 1,734,596 2011 1,110,000 901,971 2,011,971 2012 1,200,000 861,409 2,061,409 2013 1,245,000 817,855 2,062,855 2014 1,295,000 771,806 2,066,806 2015 1,345,000 722,795 2,067,795 2016 1,395,000 670,768 2,065,768 2017 1,450,000 615,530 2,065,530 2018 1,515,000 556,281 2,071,281 2019 1,575,000 493,487 2,068,487 2020 1,645,000 427,519 2,072,519 2021 1,715,000 357,303 2,072,303 2022 1,790,000 281,468 2,071,468 2023 1,870,000 200,160 2,070,160 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 24,375,000 $ 10,120,456 $ 34,495,456 $ Notes: 1Amounts for Principal excludes called revenue bonds. Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Water 123 Pe r C a p i t a Ca l e n d a r P e r s o n a l P e r s o n a l S c h o o l U n e m p l o y m e n t R e t a i l Ye a r Po p u l a t i o n 6 In c o m e 1 In c o m e 1 En r o l l m e n t 2 Ra t e 3 Sa l e s 4 20 0 0 6 0 , 1 4 8 3 , 8 1 5 , 3 0 0 2 8 , 9 0 7 1 1 , 5 4 3 2 . 0 7 5 6 , 0 5 4 , 3 3 1 $ 20 0 1 6 2 , 2 2 0 3 , 9 3 4 , 9 7 1 2 9 , 3 8 8 1 1 , 6 0 3 2 . 4 7 8 0 , 5 9 1 , 4 2 6 20 0 2 6 2 , 2 2 0 4 , 0 7 9 , 1 5 8 3 0 , 2 2 4 1 1 , 6 9 7 3 . 2 7 6 6 , 9 0 1 , 8 9 2 20 0 3 6 2 , 3 8 0 4 , 1 9 7 , 0 2 4 3 0 , 8 3 1 1 1 , 7 0 0 3 . 5 7 7 6 , 6 9 3 , 4 4 0 20 0 4 6 2 , 3 8 0 4 , 5 0 2 , 1 8 7 3 2 , 7 2 9 1 1 , 8 8 5 4 . 0 8 5 4 , 1 5 6 , 4 4 2 20 0 5 6 2 , 3 8 0 4 , 6 6 2 , 0 0 0 3 2 , 7 0 6 1 1 , 8 6 6 2 . 9 8 7 8 , 0 0 9 , 1 7 1 20 0 6 6 2 , 8 8 7 4 , 9 1 2 , 0 0 0 3 4 , 0 4 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 , 3 0 5 , 0 0 0 3 6 , 1 6 4 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 , 5 8 9 , 0 0 0 3 7 , 3 9 8 1 2 , 9 1 1 3 . 1 9 5 8 , 5 0 9 , 7 2 9 20 0 9 5 67 , 8 3 1 5 , 8 7 3 , 3 6 8 3 8 , 7 1 6 1 3 , 0 4 9 4 . 3 9 6 5 , 2 4 8 , 9 0 3 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 on m e t r o p o l i t a n I o w a C i t y / C o r a l v i l l e a n d b a s e d o n fi g u r e s f r o m B u r e a u o f Ec o n o m i c A n a l y s i s . P e r s o n a l I n c o m e e x p r e s s e d i n t h o us a n d s . 2 Io w a C i t y C o m m u n i t y S c h o o l D i s t r i c t a n d l o c a l p r i v a t e s c h o o l s 3 Io w a W o r k f o r c e D e v e l o p m e n t C e n t e r 4 Io w a R e t a i l S a l e s & U s e R e p o r t , I o w a D e p a r t m e n t o f R e ve 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 . 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 124 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 0 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 23 , 1 6 8 1 2 8 , 7 8 1 1 3 1 . 9 % 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 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 4 2 4 1 , 4 2 7 3 1 . 6 Me r c y H o s p i t a l 1, 1 0 0 5 1 , 3 0 5 4 1 . 4 Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r 1, 2 8 5 3 1 , 3 5 1 5 1 . 5 Hy - V e e 93 1 7 1 , 1 6 6 6 1 . 3 NC S P e a r s o n 1, 0 8 0 6 1 , 1 5 2 7 1 . 3 Ci t y o f I o w a C i t y 60 4 1 0 9 8 2 8 1 . 1 In t e r n a l t i o n 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 8 8 0 5 9 0 . 9 Sy s t e m s U n l i m i t e d - - 7 0 0 1 0 0. 8 Gi l l e t t e C a n a d a ( O r a l B L a b o r a t o r i e s ) 81 0 9 - - N / A 32 , 6 5 0 39 , 3 6 9 43 . 7 % To t a l E m p l o y e e s 90 , 3 0 0 So u r c e s : Ci t y o f I o w a C i t y E c o n o m i c D e v e l o p m e n t D i v i s i o n C o m m u ni t y P r o f i l e ( i n c l u d i n g f u l l a n d p a r t - t i m e e m p l o y e e s) . No t e : To t a l n u m b e r o f e m p l o y e e s i s n o t a v a i l a b l e f o r 2 0 0 0 , p e r c e n t a g e o f t o t a l c i t y e m p l o y m e n t b y e m p l o y e r i s n o t p r e s e n t e d . 20 0 9 125 2000 2001 2002 2003 2004 2005 Public Safety Police 96.25 96.25 97.25 97.25 97.25 94.25 Fire 52 52 58 58 58 56 Animal shelter 5.5 5.5 5.5 6 6 6 Inspection services 14.13 14.13 14.13 14.13 14.13 13.88 Public Works Public works admin 2 3 2 2 2 2 Engineering 10.6 11.6 13.6 13.6 13.6 11.6 Traffic engineering 4.15 4.15 4.15 5.65 5.65 5.65 Streets 23.5 23.5 23.5 22 22 22 Culture and Recreation Parks and rec admin 2 2 2 2 2 2 Recreation 14.67 15.17 15.17 15.17 15.17 15.17 Parks 13 13 13 13 13 12 Forestry 3 3 3 3 3 3 Cemetery 3 3 3 3 3 3 CBD maintenance 3 3 3 3 3 3 Library 40.25 40.25 41.25 41.25 43.25 42.63 Senior center 6 6 6 5.81 5.81 6.31 Community and Economic Development 8.55 8.55 9.05 8.35 9.45 8.45 General Government City council 7 7 7 7 7 7 City manager 3 3 3 3 3 3 City clerk 5 4.5 4.5 4 4 4 City attorney 6 6 6.6 6.6 6.6 6.6 Tort liabiltiy, insurance Personnel 4 4 4 4 4 4 Finance 27.71 27.36 28.61 28.61 28.61 26.61 Government buildings 4.08 4.97 4.96 4.96 4.96 4.96 Energy conservation 0.5 0.5 0.5 0.5 0.5 0.5 Human rights 2 2 2 2.5 2.5 2.5 Transit 48.25 48.25 48.5 48.5 48.5 50.5 Special Revenue Employee benefits 0.45 0.45 0.4 0.34 0.34 0.34 CIP / roads 7 6 7 7 7 3 Community development 4.75 4.75 4.75 5.45 5.35 4.35 JCCOG 6.1 6.1 6.1 6.1 6.1 6.1 Library development 1.5 1.5 1.5 1.5 1.5 0.8 Internal Service Funds Information technology 7.95 7.5 7.5 7.5 7.5 8 Equipment 9.5 9.5 10.25 11.25 11.26 11.25 Central services 2.1 2.25 0.75 0.75 0.75 0.75 Risk management 1.56 1.46 1.26 1.33 1.33 1.32 Business-Type Activities Parking 30.5 37 37 31.5 31.5 32.75 Wastewater treatment 25.3 25.3 26.3 26.3 27.3 27.3 Water 26.2 26.2 28.2 30.7 31.7 31.7 Sanitation 31.85 32.35 32.35 32.35 32.35 34.35 Airport 1.75 2 2 2 2 2 Cable television 5.25 5.25 5.25 6.19 6.19 6.19 Stormwater Housing authority 10.75 12.5 12.5 12.5 12.5 12.75 Total 581.65 591.79 606.38 605.64 610.65 599.56 Source: City's Financial Plans. CITY OF IOWA CITY, IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years Full-Time Equivalent Employees as of June 30 126 2006 2007 2008 2009 94.25 96.25 96.25 103.25 57 57 57 57 6 6 6 6 14.88 14.88 15.38 15.55 2 2 2 2 11.6 11.6 11.35 11.35 4.15 4.15 4.15 4.15 23.5 23.5 23.5 25.5 2 2 2 2 15.17 15.42 15.42 15.42 13 13 13 13 3 3 3 3 3 3 3 3 3 3 3 3 42.63 42.89 43.14 43.14 6.31 6.31 6.31 6.31 8.45 8.45 8.95 9.05 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6.6 6 1 4 4 4 4 26.75 26.75 26.5 25.3 4.96 4.96 4.96 4.96 0.5 0.5 0.25 0.25 2.5 2.5 2.5 2.5 50.5 50.5 54.75 58.5 0.39 0.39 0.29 0.29 2 2 1 2 4.35 4.35 3.98 3.88 6.6 6.6 6.6 6.6 1 1 1 1 11.75 12 12.3 12.3 11.26 11.26 11.26 11.26 0.75 0.75 0.75 0.75 1.38 1.38 1.73 1.93 32.75 32.75 32.75 33.25 25.5 25.5 25.5 25.6 32.5 32 32.75 32.75 33.85 33.85 34.85 35.85 1.6 1.6 1.6 1.75 6.19 6.19 6.19 6.44 0.5 1 2 1.9 13.25 13.25 13.25 13.25 605.37 608.13 614.81 630.03 Full-Time Equivalent Employees as of June 30 127 128 129 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 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 7 1 7 1 7 F i r e S t a t i o n s 3 3 3 3 3 3 3 3 3 3 F i r e a p p a r a t u s 8 8 8 8 8 8 8 8 9 9 Pu b l i c W o r k s S t r e e t s M i l e s 24 6 2 4 9 2 5 1 2 5 6 2 5 9 2 6 2 2 6 2 2 6 8 2 6 9 2 7 0 S t r e e t L i g h t s 2 , 7 1 7 2 , 8 6 3 2 , 9 2 0 2 , 9 1 9 3 , 3 5 2 3 , 3 5 7 3 , 3 7 8 3 , 3 9 5 3 , 4 0 3 3 , 4 0 8 Cu l t u r e a n d R e c r e a t i o n L i b r a r y 1 1 1 1 1 1 1 1 1 1 C e m e t e r y 1 1 1 1 1 1 1 1 1 1 A c r e a g e 3 7 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 P a r k s 50 5 0 5 0 5 0 6 1 6 1 6 1 6 1 6 1 6 1 A c r e a g e 1 , 3 2 2 1 , 3 2 2 1 , 3 2 2 1 , 3 2 2 1 , 4 0 0 1 , 4 0 0 1 , 4 0 0 1 , 6 0 0 1, 6 0 3 1 6 0 3 R e c r e a t i o n R e c r e a t i o n c e n t e r 2 2 2 2 2 2 2 2 2 2 S w i m m i n g p o o l s 3 3 3 3 3 3 3 3 3 3 B a l l d i a m o n d s 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 3 1 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 5 2 5 2 5 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 Fi s c a l Y e a r 130 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 Pa r k i n g F a c i l i t i e s 3 4 4 4 4 4 5 5 5 5 S p a c e s 1 , 9 7 5 2 , 5 3 7 2 , 5 3 7 2 , 5 3 7 2 , 5 3 7 2 , 5 3 7 3 , 1 3 7 3 , 1 0 0 3, 0 8 5 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 0 2 6 3 2 6 6 2 6 9 2 7 4 2 7 7 2 8 0 2 8 6 2 8 8 28 9 M i l e s o f s t o r m s e w e r 1 N/ A 9 1 9 4 9 8 1 0 2 1 0 5 1 1 0 1 1 7 1 1 8 1 2 0 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 , 6 3 5 2 1 , 0 6 1 2 1 , 7 8 5 2 2 , 5 1 4 23 , 0 7 7 2 3 , 5 5 8 2 4 , 1 1 3 2 4 , 9 0 3 2 5 , 1 0 4 2 3 , 1 6 1 Wa t e r M i l e s o f w a t e r m a i n s 2 4 4 2 5 2 2 6 0 2 6 5 2 6 9 2 7 2 2 7 7 2 8 3 2 8 4 2 8 8 N u m b e r o f c i t y o w n e d f i r e h y d r a n t s 2 , 0 2 9 2 , 1 0 9 2 , 1 8 2 2 , 2 43 2 , 3 4 0 2 , 4 4 8 2 , 4 7 4 2 , 5 6 9 2 , 5 7 5 2 6 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 2 0 0 2 0 0 2 0 0 3 9 5 3 9 5 So u r c e s : Va r i o u s c i t y d i v i s i o n s . No t e s : 1 I n f o r m a t i o n o n t h e n u m b e r o f m i l e s o f s t o r m s e w e r n o t a va i l a b l e f o r y e a r s p r i o r t o F Y 0 1 . 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 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 131 132 www. eidebailly .com 3999 Pennsylvania Ave., Ste. 100 | Dubuque, IA 52002-2273 | T 563.556.1790 | F 563.557.7842 | EOE 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, 2009, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 14, 2009. 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 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. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency and material weakness. A control deficiency exists when the design or operation of the control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood a misstatement of the City’s financial statements that is more than inconsequential will not be prevented or detected by the City’s internal control. We consider the deficiency in internal control described in Part II of the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood a material misstatement of the financial statements will not be prevented or detected by the City’s internal control. 133 Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe the significant deficiency described above, item II- A- 0 9 , is a material weakness. 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 obj ective 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 J une 30 , 2 0 0 9 , 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 III 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. The City’s response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. While we have expressed our conclusion on the City’s response, we did not audit the City’s response, and accordingly, we express no opinion on it. This report, a public record by law, is intended solely for the information and use of the officials, employees, and citizens of the City of Iowa City, Iowa, and other parties to whom the City of Iowa City, Iowa, may report, including federal awarding agencies and pass- through entities. This report is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 14 , 2 0 0 9 , except for Note 3 to the Schedule of Expenditures of Federal Awards which is dated May 31, 2 0 12 134 www. eidebailly .com 3999 Pennsylvania Ave., Ste. 100 | Dubuque, IA 52002-2273 | T 563.556.1790 | F 563.557.7842 | EOE REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO 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 U.S. Office of Management and Budget ( OMB) Circular A- 133 Compliance Supplement that are applicable to each of its maj or federal programs for the year ended J une 30 , 2 0 0 9 . The City’s maj or 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 grant agreements applicable to each of its maj or 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 maj or 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 on the City’s compliance with those requirements. In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the requirements referred to above that are applicable to each of its maj or federal programs for the year ended J une 30 , 2 0 0 9 . Subsequent to the issuance of the City’s 2 0 0 9 financial statements and our report dated December 14 , 20 0 9 , we became aware that certain testing procedures required by U.S. Office of Management and Budget Circular A- 133, Audits of States, Local Governments, and Non- Profit Organizations, had not been performed. Upon performing those procedures, we determined that finding II- A- 0 9 should be included within this report. In our original report we expressed an unqualified opinion on the 2 0 0 9 compliance, and our opinion on compliance, as expressed herein, remains unqualified. 135 Internal Control Over Compliance The management of the City of Iowa City, Iowa, is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grant agreements applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with requirements that could have a direct and material effect on a maj or federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, 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 control deficiency in the City’s internal control over compliance 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 non- compliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City’s ability to administer a federal program such that there is more than a remote likelihood non- compliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the City’s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material non- compliance with a type of compliance requirement of a federal program will not be prevented or detected by the City’s internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be 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, a public record by law, is intended solely for the information and use of the officials, employees, and citizens of the City of Iowa City, Iowa, and other parties to whom the City of Iowa City, Iowa, may report, including federal awarding agencies and pass- through entities. This report is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 14 , 2 0 0 9 , except for Note 3 to the Schedule of Expenditures of Federal Awards and the maj or program CFDA 9 7 .0 39 Hazard Mitigation Grant ( B) which is dated May 31, 2 0 12 136 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2009 Agency or Pass- through Program Grantor/ Program CFDA Number Number Expenditures U.S. Department of Housing and Urban Development Direct Program Community Development Block Grants/ Entitlement Grants 14 .2 18 $ 2 7 8 ,7 35 Community Development Block Grants/ Entitlement Grants 14 .2 18 5 6 5 ,0 7 9 8 4 3,8 14 Passed through program from Iowa Department of Economic Development Community Development Block Grants/ State’s Program 14 .2 2 8 0 8 - DRMH- 0 15 310 ,37 4 Community Development Block Grants/ State’s Program 14 .2 2 8 0 8 - DRH- 2 10 35 ,0 6 6 Community Development Block Grants/ State’s Program 14 .2 2 8 0 8 - DRB- 2 0 4 15 5 Community Development Block Grants/ State’s Program 14 .2 2 8 0 8 - DRH- 0 10 7 8 0 ,7 33 1,12 6 ,32 8 Direct Program HOME Investment Partnerships Program 14 .2 39 7 8 ,6 6 6 HOME Investment Partnerships Program 14 .2 39 16 2 ,6 8 3 HOME Investment Partnerships Program 14 .2 39 45 8 ,12 2 HOME Investment Partnerships Program 14 .2 39 130 ,9 17 8 30 ,38 8 Direct Program Public and Indian Housing 14 .8 5 0 10 5 ,4 8 0 Public and Indian Housing 14 .8 5 0 10 5 ,336 2 10 ,8 16 Direct Program Section 8 Housing Choice Vouchers 14 .8 7 1 6 ,38 3,30 3 Direct Program Public Housing Capital Fund 14 .8 7 2 30 ,8 8 3 Public Housing Capital Fund 14 .8 7 2 39 ,2 7 4 7 0 ,15 7 Direct Program Public Housing Capital Fund Stimulus ( Formula) Recovery Act Funded 14 .8 8 5 3,336 Total U.S. Department of Housing and Urban Development 9 ,4 6 8 ,14 2 137 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2009 Agency or Pass- through Program Grantor/ Program CFDA Number Number Expenditures U.S. Department of J ustice Passed through program from Iowa Department of J ustice Violence Against Women Formula Grants 16 .5 8 8 VW- 0 9 - 34 $ 4 2 ,9 4 8 Direct Program Bulletproof Vest Partnership Program 16 .6 0 7 4 ,8 8 4 Bulletproof Vest Partnership Program 16 .6 0 7 5 4 8 5 ,4 32 Passed through program from Governor’s Office of Drug Control Policy Edward Byrne Memorial J ustice Assistance Grant Program 16 .7 38 0 8 J AG/ C0 6 - A2 0 17 ,9 31 Direct Program Edward Byrne Memorial J ustice Assistance Grant Program 16 .7 38 6 ,6 2 6 Edward Byrne Memorial J ustice Assistance Grant Program 16 .7 38 7 ,2 5 7 31,8 14 Total U.S. Department of J ustice 8 0 ,19 4 U.S. Department of Transportation Direct Program Airport Improvement Program 2 0 .10 6 317 ,5 7 6 Airport Improvement Program 2 0 .10 6 2 0 8 ,9 2 7 Airport Improvement Program 2 0 .10 6 5 33,5 10 Airport Improvement Program 2 0 .10 6 1,32 6 ,9 6 2 Airport Improvement Program 2 0 .10 6 5 0 5 ,2 9 0 Airport Improvement Program 2 0 .10 6 1,7 9 1 Airport Improvement Program 2 0 .10 6 19 1,0 14 3,0 8 5 ,0 7 0 138 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2009 Agency or Pass- through Program Grantor/ Program CFDA Number Number Expenditures U.S. Department of Transportation ( continued) Passed through program from Iowa Department of Transportation Highway Planning and Construction 2 0 .2 0 5 FHWAIA0 8 - 0 6 $ 2 ,30 5 Highway Planning and Construction 2 0 .2 0 5 FHWAIA0 8 - 0 5 2 ,6 0 3 Highway Planning and Construction 2 0 .2 0 5 FHWAIA0 8 - 0 2 2 ,7 0 6 Highway Planning and Construction 2 0 .2 0 5 FHWAIA0 8 - 0 3 5 ,0 6 0 Highway Planning and Construction 2 0 .2 0 5 FHWAIA0 8 - 0 4 8 ,0 7 9 Highway Planning and Construction 2 0 .2 0 5 FHWAIA0 8 - 0 1- DDIR RRW- 37 15 - 0 0 1 5 3,2 15 Highway Planning and Construction 2 0 .2 0 5 0 9 MPO- J CCOG 113,35 0 Highway Planning and Construction 2 0 .2 0 5 STP- E- 37 15 ( 6 35 ) - - 8 V- 5 2 2 6 6 ,6 9 0 Highway Planning and Construction 2 0 .2 0 5 HDP- 37 15 ( 6 2 8 ) - - 7 1- 5 2 1,2 5 0 ,4 7 4 Highway Planning and Construction 2 0 .2 0 5 HDP- 37 15 ( 6 34 ) - - 7 1- 5 2 1,5 8 9 ,0 6 8 3,2 9 3,5 5 0 Federal Transit – Capital Investment Grants 2 0 .5 0 0 IA- 0 4 - 0 0 13- 37 1- 0 7 10 7 ,36 5 Federal Transit – Metropolitan Planning Grants 20 .5 0 5 0 9 MPO- J CCOG 33,2 0 0 Direct Program Federal Transit – Formula Grants 2 0 .5 0 7 9 9 3,132 Passed through program from Iowa Department of Transportation Capital Assistance Program for Elderly Persons and Persons with Disabilities 2 0 .5 13 IA- 16 - X0 0 1- 37 1- 0 9 7 9 ,10 4 J ob Access – Reverse Commute Proj ect 2 0 .5 16 IA- 37 - X0 12 - 37 1- 0 9 5 5 ,5 0 2 J ob Access – Reverse Commute Proj ect 2 0 .5 16 IA- 37 - X0 17 - 37 1- 0 9 9 3,9 4 2 J ob Access – Reverse Commute Proj ect 2 0 .5 16 IA- 37 - X0 12 - 37 1- 0 7 2 9 ,9 4 6 17 9 ,39 0 New Freedom Program 2 0 .5 2 1 IA- 5 7 - X0 0 1- 37 1- 0 7 4 ,4 4 0 139 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2009 Agency or Pass- through Program Grantor/ Program CFDA Number Number Expenditures U.S. Department of Transportation ( continued) Passed through program from Iowa Department of Public Safety, Governor’s Traffic Safety Bureau State and Community Highway Safety 2 0 .6 0 0 PAP 0 8 - 0 2 , Task 13 $ 3,4 0 8 Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 2 0 .6 0 1 PAP- 0 9 - 4 10 , Task 36 15 ,0 7 1 Total U.S. Department of Transportation 7 ,7 9 3,7 30 U.S. Department of Homeland Security Passed through program from Iowa Homeland Security & Emergency Management Division Disaster Grants – Public Assistance ( Presidentially Declared Disasters) 9 7 .0 36 FEMA- 17 6 3- DR- IA 1,8 8 4 ,0 7 9 Hazard Mitigation Grant ( B) 9 7 .0 39 FEMA- DR- 176 3- 0 0 15 0 1 1,5 5 1,8 6 8 Hazard Mitigation Grant ( B) 9 7 .0 39 DR- 17 37 - 00 0 1- 0 1 1,7 2 9 1,5 5 3,5 9 7 Total U.S. Department of Homeland Security 3,4 37 ,6 7 6 Total $ 2 0 ,7 7 9 ,7 4 2 See notes to the Schedule of Expenditures of Federal Awards. 14 0 CITY OF IOWA CITY, IOWA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2009 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 on this schedule is presented in accordance with the requirements of OM B 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 Provided Program Title CFDA Number to Subrecipients Community Development Block Grants/ Entitlement Grants 14 .2 18 $ 5 8 5 ,6 9 9 HOME Investment Partnerships Program 14 .2 39 5 6 8,0 14 Edward Byrne Memorial J ustice Assistance Grant Program 16 .7 38 12 ,8 9 4 NOTE 3. RESTATEMENT The City’s 2 0 0 9 Schedule of Expenditures of Federal Awards was reissued to report $ 1,5 5 1,8 6 8 of expenditures under CFDA# 9 7 .0 39 Hazard Mitigation Grant ( B) , instead of CFDA# 9 7 .0 36 Disaster Grants – Public Assistance ( Presidentially Declared Disasters) . CFDA# 9 7 .0 39 Hazard Mitigation Grant ( B) was audited as a maj or program. In addition, a material weakness was added to the Schedule of Findings and Questioned Costs as finding II- A- 0 9 . 14 1 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2009 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 Yes Significant deficiency Yes Noncompliance material to financial statements noted No Federal Awards Internal control over maj or programs: Material weakness identified No Significant deficiency None reported Type of auditor’s report issued on compliance for maj or programs Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A- 133, Section .5 10 ( a) No Identification of maj or programs: CFDA Number Name of Federal Program or Cluster 14 .2 2 8 Community Development Block Grants/ State’s Program 14 .2 39 HOME Investment Partnerships Program 2 0 .10 6 Airport Improvement Program 2 0 .2 0 5 Highway Planning and Construction 9 7 .0 39 Hazard Mitigation Grant ( B) Dollar threshold used to distinguish between Type A and Type B programs $ 6 2 3,39 2 Auditee qualified as low- risk auditee Yes 14 2 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2009 Part II: Findings Related to the Financial Statements : SIGNIFICANT DEFICIENCY/MATERIAL WEAKNESS II- A- 0 9 Material Adj ustment to the Schedule of Expenditures of Federal Awards Criteria – A properly designed system of internal control over financial reporting allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with the requirements of OMB Circular A- 133, Audits of States, Local Governments, and Non- Profit Organizations. Condition – An adj ustment was made to the Schedule of Expenditures of Federal Awards to correct a data entry error that was not identified through the City’s existing internal controls and resulted in a material misstatement of the City’s Schedule of Expenditures of Federal Awards. Cause – There is no formal internal review process for the Schedule of Expenditures of Federal Awards over City personnel administering the grant reporting. The cause of this error was a data entry error on a CFDA number that was entered in the software used to prepare the Schedule of Expenditures of Federal Awards. CFDA number 9 7 .0 36 was entered rather than 9 7 .0 39 . Third party verification by the grant awarding agency also confirmed the incorrect CFDA number. Effect – The effect of this condition was that the federal expenditures were reported under an incorrect CFDA number which resulted in a maj or program not being identified as such. Recommendation – We recommend that finance staff develop a review procedure to insure that all information included in the Schedule of Expenditures of Federal Awards is correctly reported. Response – Due to an increase in Federal and State funding for flood and stimulus grants, the Accounting Division hired an additional accountant in J anuary 2 0 11 whose primary responsibility is grants and who is able to commit more time to grant reporting. Going forward, this grant accountant will look at CFDA numbers entered into the software used to prepare the Schedule of Expenditure of Federal Awards to verify data entry. Conclusion – Response accepted. 14 3 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2009 Part III: Other Findings Related to Required Statutory Reporting : III- A- 0 9 Certified Budget – Disbursements before the March 2 4 , 2 0 0 9 , amendment exceeded the original amount budgeted in the community and economic development and debt service functions. Chapter 38 4 .2 0 of the Code of Iowa states, in part, “ Public monies may not be expended or encumbered except under an annual or continuing appropriation.” Recommendation – The budget should have been amended in sufficient amounts in accordance with Chapter 38 4 .18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response – The City will continue to monitor expenditures on an ongoing basis and in the future will amend the budget prior to disbursements exceeding the budgeted amounts. Conclusion – Response accepted. III- B- 0 9 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 2 5 , 19 7 9 . III- C- 0 9 Travel Expense – No expenditures of City money for travel expenses of spouses of City officials or employees were noted. III- D- 0 9 Business Transactions – No business transactions between the City and City officials or employees were noted. III- E- 0 9 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 insure the coverage is adequate for current operations. III- F- 0 9 Council Minutes – No transactions were found that we believe should have been approved in the Council minutes but were not. III- G- 0 9 Deposits and Investments – No instances of non- compliance with the deposit and investment provisions of Chapters 12 B and 12 C of the Code of Iowa and the City’s investment policy were noted. III- H- 0 9 Revenue Bonds – No instances of non- compliance with the provisions of the City’s revenue bond resolutions were noted. 14 4