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FY2010 Annual Financial ReportCity of Iowa City, Iowa Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2010 Local dignitaries break ground at the site of Iowa City’s Fire Station #4 in October of 2009. The Fire Station is located at 2008 Dubuque Road. Fire Station #4 Iowa City broke ground on a fourth re station in October 2009, with construction of the 13,300 square-foot station scheduled to be complete in July 2011. The additional satellite station will employee nine new reghters and be equipped with a pumper truck and a ladder truck. The building will feature drive-thru apparatus bays, a rst for Iowa City, which will improve safety response time for the vehicles. The design also includes a geothermal system, use of daylight- ing, water-ecient xtures, and other features that are intended to achieve gold certication for the Leadership in Energy and Environmental Design (LEED), a green building certication system. Lt. Governor Patty Judge was a part of the ground breaking ceremony as this project has been made possible with a $2,269,000 grant from I-JOBS, Iowa’s infrastructure investment initiative. Total project costs are estimated at $4,809,000. To fund the nine reghters who will sta the new station 24 hours a day, seven days a week, the City will use a portion of the 1 percent utility franchise fee that became eective April 1, 2010. The station, located on the city’s northeast side at the intersection of North Dodge Street and Scott Boulevard, will improve emergency response times to residents and businesses in the area. “The City Council's decision to construct, equip, and sta Fire Station 4 in the northeast Iowa City will have an extremely positive impact on the future of emergency service delivery in the community,” said Fire Chief Andy Rocca. COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF IOWA CITY, IOWA FOR THE FISCAL YEAR ENDED JUNE 30, 2010 PREPARED BY: FINANCE DEPARTMENT CITY OF IOWA CITY, IOWA CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2010 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 Statement of changes in assets and liabilities – agency funds........................................................ 96 1 CITY OF IOWA CITY, IOWA TABLE OF CONTENTS June 30, 2010 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 that could have a direct and material effect on each major program and on internal control over compliance in accordance with OMB Circular A- 133................................................................................................................................................... 135 Schedule of expenditures of federal awards....................................................................................... 137 Notes to the schedule of expenditures of federal awards ................................................................... 142 Schedule of findings and questioned costs......................................................................................... 143 2 December 15, 2010 To the Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa The Comprehensive Annual Financial Report (CAFR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2010 is submitted herewith in accordance with the provisions of Chapter 11 of the Code of Iowa. The City’s Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner designed to fairly present the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial affairs have been included. This report consists of management’s representation concerning the finances of the City of Iowa City. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The CAFR reflects all funds of the City in accordance with standards set by the Governmental Accounting Standards Board (GASB). In 1999, GASB adopted Statement No. 34, Basic Financial Statements – Management’s Discussion and Analysis – For State and Local Governments . The final effective date for the implementation of GASB No. 34 for the City of Iowa City was June 30, 2003. This report complies with those standards. This statement significantly changes governmental financial reporting in order to bring it closer to a private sector model. Chapter 11 of the Code of Iowa requires an annual audit to be performed. The independent public accounting firm of Eide Bailly LLP was selected by the City. In addition to meeting the requirements set forth in Chapter 11, the audit was also designed to meet the requirements of the Single Audit Act of 1996 and related Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations . While, the financial statements are the responsibility of the City, the responsibility of the auditor is to express an opinion on the City’s financial statements based on their audit. The goal of the independent audit is to provide reasonable assurance that the City’s financial statements for the fiscal year ended, June 30, 2010 are free of material misstatement. The audit is conducted in accordance with generally accepted auditing standards and involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement preparation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Iowa City’s financial statements for the fiscal year ended, June 30, 2010, are fairly presented in conformity with GAAP. The independent auditors’ report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. As a recipient of federal financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to these federal programs. These internal accounting and administrative controls are subject to periodic evaluation by the City's management and the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State, Local Governments and Non- Profit Organizations. Information related to this single audit, including the schedules of federal financial assistance, findings and questioned costs, and independent auditors’ reports on the internal accounting and administrative controls and compliance with applicable laws and regulations are included in the compliance section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member serves a four-year term. Elections are held every two years allowing for continuation in office of at least three members at each biennial election. The Council members are elected at large, 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 557 full-time and 72 part-time permanent municipal employees and 406 temporary employees, including a police force of 76 sworn personnel and a fire department of 59 firefighters. The City provides a full range of services including police and fire protection, construction and maintenance of roads, streets and infrastructure, inspection and licensing functions, maintenance of grounds and buildings, municipal airport, library, recreational activities, and cultural events. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate 4 storm and sanitary sewer systems. The City operates a municipal off-street and on-street parking system in the downtown area. And 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 over 35,000 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, has helped 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 5.0% for the month of June 2010, as compared to 6.6% 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 stayed consistent in comparison to the prior year with 127 new single- family houses and 81 multi-family dwelling units added to the tax rolls for the year ended December 31, 2009. 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 69,086 in 2010; this represents an 11.0% increase. In response to national economic recession, the American Recovery and Reinvestment Act, signed into law by President Obama in February 2009, was 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 have 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 applied for funds totaling $56,659,268 and has been approved for $6,970,540. These projects include upgrading LED light fixtures in the parking structures, reconstructing of airport runways, and purchasing three 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 $14,718,867 in I-JOBS funds and has been approved for $8,012,132, with an additional $6,504,708 approved if funds become available. These funds are being used for projects including building a fourth fire station, relocating the North Wastewater Treatment Plant, and the UniverCity Neighborhood Partnership, a joint project between the City and the University of Iowa to ensure the neighborhoods around the University of Iowa campus remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. 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 Treatment Plant, elevating Dubuque Street and rebuilding Park Road Bridge, constructing levees to prevent future flooding, as well as, rebuilding the City’s Animal Shelter. In addition, the City received $23,293,000 in Hazard Mitigation Grants and Community Development Block Grants and is in the process of acquiring properties in the flood-impacted neighborhoods. The City is 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 $11,740,000 and will be funded through Tax Increment Financing (TIF). 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 6 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. The City has received grants totaling $3,950,000 to construct new single family homes in Iowa City to replace homes lost during the 2008 flood. These funds can be used to assist the homebuyer with the downpayment of up to 25% of the home cost. A total of 77 new homes have been approved in the first two rounds of the Single Family New Construction (SFNC) Program. The City is now soliciting proposals from the building community to construct approximately 31 additional homes in Iowa City by December 31, 2012. In addition, the City and the University of Iowa have joined together in a cooperative effort to acquire and rehabilitate 25 homes in the neighborhoods surrounding the University of Iowa Campus to ensure the neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The City has secured a $1,250,000 I-JOBS grant for the program. Upcoming projects for the City include Moss Green Urban Village, Towncrest Urban Renewal, and Riverfront Crossing Development. The City has established an urban renewal area for the development of Moss Green Urban Village, a 243-acre, 18-lot office research and mixed-use subdivision on the northeast edge of the city. The Towncrest Urban Renewal Plan was developed to revitalize the Towncrest commercial district in ways that would serve existing businesses while also drawing new retailers, service providers, and consumers to the area. The costs for Towncrest Renewal are estimated at $1,400,000 and will be covered through TIF. The Riverfront Crossing Development Plan is an initiative to revitalize the area south of Iowa City’s downtown area. It will be a mixed-use zoning district that will allow for commercial and residential development with identified costs estimated at $800,000 and additional expenses anticipated. A TIF district is being considered for this project. This project will include purchasing and rehabilitating the train depot, which relates to the recent announcement of a $230,000,000 federal grant that will be used to develop passenger rail services from Chicago to Iowa City, pending matching State funds. Long-term Financial Planning In preparing the financial plan for the three years ending June 30, 2014, 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 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 . Hu m a n R i g h t s Hu m a n Re s o u r c e s Ad m i n . Ac c o u n t i n g Pu r c h a s i n g Do c u m e n t Se r v i c e s In f o r m a t i o n T r a i n i n g & Te c h n o l o g y E q u i p m e n t Se r v i c e s Re v e n u e W e a t h e r A l e r t S i r e n S y s t e m Ri s k E m e r g e n c y M g m t . Ma n a g e m e n t Ad m i n . & Su p p o r t Em e r g e n c y Op e r a t i o n s Fi r e Pr e v e n t i o n Ad m i n . Bu i l d i n g In s p e c t i o n Ho u s i n g Au t h o r i t y Ho u s i n g In s p e c t i o n Pa r k i n g Tr a n s i t O p e r a t i o n s Pa r a - T r a n s i t Ad m i n i s t r a t i o n CB D M a i n t e n a n c e Ce m e t e r y Fo r e s t r y Go v e r n m e n t Bu i l d i n g s Pa r k s Re c r e a t i o n Ad m i n i s t r a t i o n Co m m u n i t y De v e l o p m e n t Ec o n o m i c De v e l o p m e n t JC C O G P r o g r a m s Ne i g h b o r h o o d Se r v i c e s Ur b a n P l a n n i n g Ad m i n i s t r a t i o n An i m a l S e r v i c e s Co m m u n i t y Se r v i c e s Cr i m i n a l In v e s t i g a t i o n s Em e r g e n c y Co m m . Pa t r o l Re c o r d s & In v e s t i g a t i o n s Ad m i n i s t r a t i o n En e r g y Co n s e r v a t i o n En g i n e e r i n g Eq u i p m e n t Ma i n t e n a n c e La n d f i l l So l i d W a s t e C o l l e c t i o n St o r m w a t e r Ma n a g e m e n t St r e e t s Tr a f f i c E n g i n e e r i n g Wa s t e w a t e r Ma n a g e m e n t Wa t e r Se n i o r C e n t e r fi n a d m / c i t y o r g c h a r t 9 - 0 9 . p d f 10 CITY OF IOWA CITY, IOWA LISTING OF CITY OFFICIALS June 30, 2010 ELECTED OFFICIALS Term Expires Mayor Matt Hayek January 2, 2012 Council Member and Mayor Pro tem Ross Wilburn January 2, 2012 Council Member Regenia Bailey January 2, 2012 Council Member Connie Champion January 2, 2014 Council Member Terry Dickens January 2, 2014 Council Member Susan Mims January 2, 2014 Council Member Mike Wright January 2, 2012 APPOINTED OFFICIALS Date of Hire Acting City Manager Dale E. Helling August 16, 1975 City Clerk Marian K. Karr May 21, 1979 City Attorney Eleanor Dilkes March 18, 1996 DEPARTMENT DIRECTORS Director of Housing and Inspection Services Douglas W. Boothroy September 22, 1975 Library Director Susan Craig July 28, 1975 Director of Planning & Community Development Jeff Davidson January 26, 1981 Director of Public Works Rick Fosse February 22, 1984 Director of Transportation Services Chris O’Brien December, 29, 1997 Senior Center Coordinator Linda Kopping March 20, 1995 Fire Chief Andrew Rocca July 14, 1978 Parks and Recreation Director Mike Moran September 26, 1983 Director of Finance Kevin O’Malley August 19, 1985 Chief of Police Sam Hargadine August 29, 2005 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, 2010, 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, 2010, 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 2010 financial statements and our report dated December 15, 2010, 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 2010 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 15, 2010, 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 15, 2010, 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, 2010. 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, 2010 by $425,683,000 (net assets). Of this amount, $98,203,000 (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 $35,206,000 during the fiscal year. Governmental activities increased by $24,504,000 and business-type activities increased by $10,702,000. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $50,731,000, an increase of $8,608,000 in comparison with the prior year. Of this total amount, approximately $32,470,000, or 64% 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 $26,101,000, or 57% of total General Fund expenditures. • The City’s total debt decreased by $19,425,000, during the current fiscal year. The key factor to this decrease was the City did not issue any new bonded debt, except as a refunding of revenue bonds to take advantage of lower interest rates and the retirement of bonds. The City was able to utilize Federal and State stimulus grants and a new local option sales tax, rather than debt, to fund some capital improvement projects. 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 Fund, and Debt Service Fund. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non-major governmental funds is combined into a single aggregated presentation and are referenced under a single column as “Other Governmental Funds”. Individual fund data on each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 30 – 35 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Airport, Cable Television, Housing Authority, Parking, Sanitation, Stormwater Collection, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Parking, Wastewater Treatment, Water, Sanitation, and Housing Authority Funds are considered to be major funds and are reported individually throughout the report. The other three non-major enterprise funds are grouped together for reporting purposes and listed under a single heading “Other Enterprise Funds”. Detailed information for each of the non-major funds is provided in the combining statements on pages 88 – 90. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 36 – 41 of this report. 16 Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City’s own programs and therefore are not reflected in the government-wide financial statements. The City has two fiduciary funds: Project Green and Library Foundation, which are maintained as agency funds. The basic fiduciary funds financial statements can be found on page 42. Notes to Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 43 – 76 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non-major governmental funds, non-major enterprise funds, and internal service funds are presented immediately following the notes. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets exceeded liabilities by $425,683,000 at the close of the fiscal year ended June 30, 2010. By far, the largest portion of the City’s net assets reflect its investment in capital assets (e.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), less any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Iowa City's Net Assets June 30, 2010 (amounts expressed in thousands) Governmental Business-type activities activities Total 2010 2009 2010 2009 2010 2009 Current and other assets 142,590 $ 126,588 $ 100,458 $ 99,378 $ 243,048 $ 225,966 $ Capital assets 173,071 167,330 255,613 254,404 428,684 421,734 Total Assets 315,661 293,918 356,071 353,782 671,732 647,700 Long-term liabilities outstanding 75,466 83,928 95,080 103,551 170,546 187,479 Current and other liabilities 70,426 64,725 5,077 5,019 75,503 69,744 Total Liabilities 145,892 148,653 100,157 108,570 246,049 257,223 Net assets: Invested in capital assets, net of related debt 111,703 100,741 172,601 162,211 284,304 262,952 Restricted 25,588 26,586 17,588 19,159 43,176 45,745 Unrestricted 32,478 17,938 65,725 63,842 98,203 81,780 Total Net Assets 169,769 $ 145,265 $ 255,914 $ 245,212 $ 425,683 $ 390,477 $ 17 A portion of the City’s net assets (10.1% or $43,176,000) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets (23.1% or $98,203,000) 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, 2010, 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 $24,504,000. The increase in net assets of governmental activities is primarily due to receiving grants to fund expenditures in capital assets for flood recovery and mediation and community development projects. The following is a more detailed review of FY10’s operation. City of Iowa City's Changes in Net Assets (amounts expressed in thousands) Governmental Business-type activities activities Total 2010 2009 2010 2009 2010 2009 Revenues: Program Revenues: Charges for services 7,388 $ 6,701 $ 35,943 $ 36,227 $ 43,331 $ 42,928 $ Operating grants and contributions 15,554 8,185 7,777 7,293 23,331 15,478 Capital grants and contributions 8,291 3,773 6,570 3,705 14,861 7,478 General Revenues: Property taxes 49,467 47,085 - - 49,467 47,085 Road use tax 5,525 5,254 - - 5,525 5,254 Local option sales tax 8,141 - - - 8,141 - Other taxes 1,535 1,489 - - 1,535 1,489 Earnings on investments 1,766 3,057 1,311 2,577 3,077 5,634 Gain on disposal of capital assets - - 230 360 230 360 Other 3,893 4,894 464 317 4,357 5,211 Total revenues 101,560 80,438 52,295 50,479 153,855 130,917 Expenses: Public safety 19,955 20,730 - - 19,955 20,730 Public works 16,806 15,177 - - 16,806 15,177 Culture and recreation 12,238 9,574 - - 12,238 9,574 Community and economic development 16,913 8,726 - - 16,913 8,726 General government 7,549 7,600 - - 7,549 7,600 Interest on long-term debt 2,970 3,264 - - 2,970 3,264 Wastewater treatment - - 11,274 11,925 11,274 11,925 Water - - 8,309 9,185 8,309 9,185 Sanitation - - 7,705 7,296 7,705 7,296 Housing authority - - 7,838 7,238 7,838 7,238 Parking - - 4,536 4,489 4,536 4,489 Airport - - 724 693 724 693 Stormwater - - 1,187 1,223 1,187 1,223 Cable television - - 645 633 645 633 Total expenses 76,431 65,071 42,218 42,682 118,649 107,753 Change in net assets before transfers 25,129 15,367 10,077 7,797 35,206 23,164 Transfers (625) 205 625 (205) - - Change in net assets 24,504 15,572 10,702 7,592 35,206 23,164 Net assets beginning of year 145,265 129,693 245,212 237,620 390,477 367,313 Net assets end of year 169,769 $ 145,265 $ 255,914 $ 245,212 $ 425,683 $ 390,477 $ 18 The total revenues for governmental activities for FY10 were $101,560,000. Governmental activities are primarily funded through taxes (63.7% or $64,668,000) and grants and contributions (23.5% or $23,845,000) Grants and contributions increased from prior year by $11,887,000 due to federal ARRA grants, state I-JOBS grants, and Community Development Block Grants used to fund capital and flood mediation projects. Expenses for governmental activities totaled $76,431,000. Governmental activities are tracked by function including public safety, public works, community and economic development, culture and recreation, and general government. In FY10, public safety accounted for the highest portion of governmental expenses (26.1% or $19,955,000). Community and economic development (22.1% or $16,913,000) and public works (22.0% or $16,806,000) made up another large portion of governmental expenses and each increased over the prior year due to flood recovery and mediation projects that were covered by various grants. Business-type Activities: Business-type activities increased the City’s total assets by $10,702,000. The increases in net assets were primarily in the Wastewater, Airport, and Water funds. For all business-type activities, revenues exceeded expenses by $10,077,000. Revenues for business-type activities totaled $52,295,000. The primary revenue source for business-type activities is charges for services (68.7% or $35,943,000). In addition for FY10, the City’s business type-activities had a significant portion of their revenues from grants and contributions (27.4% or $14,347,000). This is an increase of $3,349,000 to help fund capital and flood recovery projects for business-type activities. The total expenses for business-type activities in FY10 were $42,218,000. Wastewater treatment represented the highest portion of business-type activities (26.7% or $11,274,000), with Water (19.7% or $8,309,000), Housing Authority (18.6% or $7,838,000), and Sanitation (18.3 or $7,705,000) making up the remainder of the majority of business-type activities expenses. The graphs on the following pages represent a breakdown of revenue by source and expenditures by program area for governmental and business-type activities. 19 Governmental Activities FY2010 Revenue by Source Grants and Contributions 23% Charges for services 7% Misc. Other 6% Property taxes 49% Other Taxes 15% Business-Type Activities FY2010 Revenue by Source Charges for services 69% Misc. Other 4% Grants and Contributions 27% 20 Governmental Activities FY2010 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 FY2010 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, 2010, the City’s governmental funds reported combined ending fund balances of $50,731,000, an increase of $8,608,000 in comparison with the prior year. Of this total amount, $32,470,000 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 (36.0%) 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 fund various debt service payments ($13,952,000), 2) to fund employee retirement commitments ($2,124,000), and 3) restricted by grant agreements ($719,000). The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2010, the unreserved fund balance of the General Fund was $26,101,000 while General Fund’s total fund balance was $26,507,000. 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 57.3% of total General Fund expenditures ($45,565,000), while total fund balance represents 58.2% of that same amount. The fund balance of the City’s General Fund increased by $10,590,000 during the current fiscal year . This was due to collection of a local option sales tax that took effect in FY10 to be used to fund future capital improvement projects. This tax will be collected through FY13. In addition, the City’s property tax collected in FY10 increased due to higher taxable property values. The Bridge, Street, and Traffic Control Construction Fund had a deficit fund balance of ($1,207,000) as compared to a deficit balance of ($1,883,000) 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 FY11 to cover the capital expenditures. The Other Shared Revenue and Grants Fund had a deficit fund balance of ($673,000) as compared to a deficit balance of ($720,000) in the prior period. This fund accounts for transactions from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The deficit is due to capital expenditures. The City anticipates receiving funds from the Iowa Department of Economic Development. The Debt Service Fund had a fund balance of $13,952,000, an increase of $2,193,000 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 $248,009,000, a net asset increase of $9,907,000 . This was primarily due to an increase in capital contributions of federal and state grants to fund capital improvement projects to help with flood recovery and mediation. Of the enterprise funds’ net assets, $172,601,000 is invested in capital assets, net of related debt. Unrestricted net assets totaled $57,820,000, an increase of $1,088,000 compared to the previous year. 22 The Internal Service funds showed net assets totaling $22,446,000 as of June 30, 2010, an increase of $2,045,000 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. 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 $152,671,000 to a total of $293,161,000. This represented a 108.7% increase. The major increase was due to capital projects in governmental and business-type funds due to timing of completion of projects, ongoing recovery from the flood of 2008, and stimulus grants received to help with economic development. 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, 2010 amounts to $428,684,000 (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, 2010 increased by $5,741,000 for governmental activities compared to the prior year and increased by $1,209,000 for business- type activities over the prior year. The following table reflects the $428,684,000 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 2010 2009 2010 2009 2010 2009 Land 21,838 $ 17,483 $ 25,847 $ 25,783 $ 47,685 $ 43,266 $ Buildings 45,041 44,973 72,293 74,866 117,334 119,839 Improvements other than buildings 3,580 3,721 6,846 7,233 10,426 10,954 Machinery and equipment 15,908 12,389 8,773 9,265 24,681 21,654 Infrastructure 80,863 74,458 130,545 131,052 211,408 205,510 Construction in progress 5,841 14,306 11,309 6,205 17,150 20,511 Total 173,071 $ 167,330 $ 255,613 $ 254,404 $ 428,684 $ 421,734 $ Major capital asset events during the current fiscal year included the following: • Continuation of airport projects included runway design, grading, lighting, paving, and runway extension. Project costs during the year totaled $3,733,000 added with prior years’ costs there was $6,286,000 remaining in construction in progress at fiscal year end. • Completion of the McCollister Boulevard extension project to connect Old Highway 218 at its intersection with Mormon Trek Boulevard to Gilbert Street capitalized for $7,439,000. $2,462,000 remains in construction in progress for a variety of additional street and bridge construction in new residential areas and replacement and expansion of existing infrastructure. 23 • On-going work on the Inverted Siphon Sewer Project to construct a horizontal directional drilled inverted siphon sewer, inlet and outlet structures, sanitary manholes, and sanitary sewer. Expenses of $1,174,000. were in construction in progress at the end of the fiscal year. • Continued construction on a new landfill cell. $1,387,000 in expenses for FY10 added to prior years’ expenses for a total of $ 1,894,000 in construction in progress at fiscal year end. • Public Works salt storage building completed and capitalized for $963,000. • Ground breaking on a new fourth fire station. Expenses of $562,000 were in construction in progress at the end of the fiscal year. Total project costs are estimated at $4,089,000. 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 $153,385,000. Of this amount, $75,050,000 comprises debt backed by the full faith and credit of the City. However, 5.0% of this total, $3,750,000, is debt that serves enterprise funds and is abated by their charges for services and 8.4% of this total, $6,320,000, is debt that will be paid with Tax Increment Financing revenues. The remaining $78,335,000 represents revenue bonds secured solely by specific revenue sources. City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed in thousands) Governmental Business-type Activities Activities Total 2010 2009 2010 2009 2010 2009 General obligation bonds 71,300 $ 80,654 $ 3,750 $ 4,341 $ 75,050 $ 84,995 $ Revenue bonds - - 78,335 87,815 78,335 87,815 Total 71,300 $ 80,654 $ 82,085 $ 92,156 $ 153,385 $ 172,810 $ During the current fiscal year the City’s total bonded debt decreased by $19,425,000. The City did not issue any General Obligation bonds during FY10. The City did issue $9,110,000 of parking revenue bonds and $15,080,000 of wastewater revenue bonds for current refunding of $9,275,000 and $16,240,000 of parking and wastewater revenue bonds, respectively. The refundings were undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $3,447,000 in future debt service payments and an economic gain of $2,884,000. The City continues to have the same excellent bond rating on its General Obligation bonds that it has had for the past several years. This rating is given to those bonds judged to be of the best quality and carrying the smallest degree of investment risks. The City's bond ratings by Moody’s Investors Services, Inc. as of June 30, 2010 were as follows: General obligation bonds Aaa Parking revenue bonds A Wastewater treatment revenue bonds A Water revenue bonds A The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of General Obligation Debt outstanding to 5% of the assessed value of all taxable property in Iowa City. The current debt limitation for the City is $218,974,000. With outstanding General Obligation Debt applicable to this limit of $75,050,000 we are utilizing 34.3% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements . 24 Economic Factors and Next Year’s Budget and Rates In May 2009, the voters of Iowa City approved a one cent local option sales tax. This tax will be collected for four years beginning July 1, 2009. In FY10, the City collected $8,141,000 in local option sales tax. The City Council has indicated that the priorities for use of this sales tax will be the elevation of Dubuque Street, including the reconstruction of Park Road Bridge, and the relocation of the North Wastewater Plant. Sales tax proceeds are used to provide local match for available state and federal funding and to reduce our reliance on property tax and increased user fees otherwise needed to fund such projects. During the 2009 session, the Iowa State Legislature passed a law allowing cities to utilize franchise fee tax as a revenue alternative to property tax effective for FY11. The Iowa City Council passed a local franchise fee tax of 1% on natural gas and electricity to support additional public safety initiatives that became effective April 1, 2010. For the last three months of FY10, the City collected $47,000. The City expects continued constraints by the State’s property tax formula. The rollback on residential properties negatively affects the City’s general operating funds and without the potential for new revenue sources, like those mentioned above, the City’s opportunities for new initiatives are limited. The Council has established a balance budget in the General Fund for FY11 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of taxable valuation for FY11 is provided below: General Levy $ 8.100 Debt Service Levy 4.438 Employee Benefits Levy 3.581 Transit Levy 0.950 Liability Insurance Levy 0.417 Library Levy 0.270 Total City Levy $ 17.756 Requests for Information This report is designed to provide a general overview of the City of Iowa City’s finances for all of those with an interest in the government’s finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed to City of Iowa City, Finance Department, 410 E. Washington Street, Iowa City, IA, 52240. 25 Governmental Business-type Activities Activities Total Assets Equity in pooled cash and investments 53,778 $ 52,189 $ 105,967 $ Receivables: Property tax 48,809 - 48,809 Accounts and unbilled usage 691 3,104 3,795 Interest 147 538 685 Notes 15,842 997 16,839 Internal balances (9,175) 9,175 - Due from other governments 11,852 1,148 13,000 Prepaid insurance 13 - 13 Inventories 557 418 975 Assets held for resale 663 - 663 Restricted assets: Equity in pooled cash and investments 19,413 32,889 52,302 Capital assets: Land and construction in progress 27,679 37,156 64,835 Other capital assets (net of accumulated depreciation) 145,392 218,457 363,849 Total assets 315,661 356,071 671,732 Liabilities Accounts payable 4,144 562 4,706 Contracts payable 786 1,167 1,953 Accrued liabilities 4,123 439 4,562 Interest payable 230 1,864 2,094 Deposits 894 647 1,541 Due to other governments 2,014 118 2,132 Notes payable 498 - 498 Unearned revenue 57,737 280 58,017 Noncurrent liabilities: Due within one year: Employee vested benefits 1,134 288 1,422 Bonds payable 9,647 4,025 13,672 Due in more than one year: Employee vested benefits 966 235 1,201 Other Post Employment Benefits Obligation 1,363 383 1,746 Notes Payable 211 - 211 Bonds payable 62,145 78,989 141,134 Landfill closure/post-closure liability - 11,160 11,160 Total liabilities 145,892 100,157 246,049 (continued) (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS June 30, 2010 26 Governmental Business-type Activities Activities Total Net Assets Invested in capital assets, net of related debt 111,703 $ 172,601 $ 284,304 $ Restricted for or by: Employee benefits 2,124 - 2,124 Capital projects 8,043 - 8,043 Debt service 13,952 - 13,952 Assets held for resale 663 - 663 Streets - - - Other purposes 87 - 87 Bond ordinance - 13,399 13,399 State statute - 906 906 Future improvements - - - Grant agreement 719 3,283 4,002 Unrestricted 32,478 65,725 98,203 Total net assets 169,769 $ 255,914 $ 425,683 $ 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, 2010 (amounts expressed in thousands) 27 Operating Capital Charges Grants and Grants and Functions/Programs: Expenses for Services Contributions Contributions Governmental activities: Public safety 19,955 $ 2,980 $ 1,339 $ 120 $ Public works 16,806 1,061 1,484 5,574 Culture and recreation 12,238 773 306 14 Community and economic development 16,913 - 12,425 2,583 General government 7,549 2,574 - - Interest on long-term debt 2,970 - - - Total governmental activities 76,431 7,388 15,554 8,291 Business-type activities: Wastewater Treatment 11,274 12,637 - 2,115 Water 8,309 7,957 6 572 Sanitation 7,705 8,096 6 6 Housing Authority 7,838 180 7,765 25 Parking 4,536 5,377 - - Airport 724 289 - 3,311 Stormwater 1,187 617 - 541 Cable television 645 790 - - Total business-type activities 42,218 35,943 7,777 6,570 Total 118,649 $ 43,331 $ 23,331 $ 14,861 $ General revenues: Property taxes, levied for general purposes Road use tax Hotel/motel tax Gas and electric tax Local option sales tax Utility franchise tax Earnings on investments Gain on disposal of capital assets Miscellaneous Transfers Total general revenues 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, 2010 (amounts expressed in thousands) 28 Governmental Business-type Activities Activities Total (15,516) $ - $ (15,516) $ (8,687) - (8,687) (11,145) - (11,145) (1,905) - (1,905) (4,975) - (4,975) (2,970) - (2,970) (45,198) - (45,198) - 3,478 3,478 - 226 226 - 403 403 - 132 132 - 841 841 - 2,876 2,876 - (29) (29) - 145 145 - 8,072 8,072 (45,198) 8,072 (37,126) 49,467 - 49,467 5,525 - 5,525 699 - 699 789 - 789 8,141 - 8,141 47 - 47 1,766 1,311 3,077 - 230 230 3,893 464 4,357 (625) 625 - 69,702 2,630 72,332 24,504 10,702 35,206 145,265 245,212 390,477 169,769 $ 255,914 $ 425,683 $ 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 18,539 $ 1,932 $ -$ -$ 12,813 $ 1,354 $ 34,638 $ Receivables: Property tax 26,699 9,825 - - 12,278 7 48,809 Accounts and unbilled usage 514 - - - - 153 667 Interest 42 - - - 59 19 120 Notes 386 - 12,032 1,823 1,601 - 15,842 Advances to other funds 1,645 - 18 - 208 - 1,871 Due from other governments 4,045 154 14 4,048 - 3,519 11,780 Inventories 234 - - - - - 234 Assets held for resale - - - 498 - 165 663 Restricted assets: Equity in pooled cash and investments 8,948 - - 41 - 10,424 19,413 Total assets 61,052 $ 11,911 $ 12,064 $ 6,410 $ 26,959 $ 15,641 $ 134,037 $ (continued) (amounts expressed in thousands) Special Revenue CITY OF IOWA CITY, IOWA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2010 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 1,136 $ 16 $ -$ 191 $ -$ 2,244 $ 3,587 $ Contracts payable - - - - - 786 786 Accrued liabilities 1,535 2 10 120 - 56 1,723 Advances from other funds 1,288 - 4 1,849 - - 3,141 Due to other governments 15 - - 37 - 1,962 2,014 Notes payable - - - 498 - - 498 Deferred revenue 29,681 9,769 12,050 4,384 13,007 1,772 70,663 Liabilities payable from restricted assets: Deposits 890 - - 4 - - 894 Total liabilities 34,545 9,787 12,064 7,083 13,007 6,820 83,306 Fund balances: Reserved for: Inventories 234 - - - - - 234 Assets held for resale - - - 498 - 165 663 Encumbrances 58 - - 25 - 372 455 Debt service - - - - 13,952 - 13,952 Employee retirement commitments - 2,124 - - - - 2,124 Perpetual care 114 - - - - - 114 Restricted by grant agreement - - - 719 - - 719 Unreserved Undesignated: General fund 26,101 - - - - - 26,101 Special revenue funds - - - (1,915) - 241 (1,674) Capital projects funds - - - - - 8,043 8,043 Total fund balances 26,507 2,124 - (673) 13,952 8,821 50,731 Total liabilities and fund balances 61,052 $ 11,911 $ 12,064 $ 6,410 $ 26,959 $ 15,641 $ 134,037 $ The notes to the financial statements are an integral part of this statement. Special Revenue BALANCE SHEET (continued) GOVERNMENTAL FUNDS June 30, 2010 (amounts expressed in thousands) CITY OF IOWA CITY, IOWA 31 Total governmental fund balances 50,731 $ 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. 22,446 Prepaid insurance benefits future periods and is included in governmental activities in the statement of net assets. 13 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 12,926 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. 167,120 Accrued compensated absences are not due and payable in the current period and therefore are not reported in the funds. (1,991) Accrued post employment benefit obligations are not due and payable in the current period and therefore are not reported in the funds. (1,338) Bonds payable are not due and payable in the current period and therefore are not reported in the funds. (71,792) Notes payable are not due and payable in the current period and therefore are not reported in the funds. (211) Accrued interest on bonds (230) Internal balance due to integration of internal service funds (7,905) Total net assets of governmental activities 169,769 $ 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, 2010 32 Community Other Development Shared Other Employee Block Revenue and Debt Governmental General Benefits Grant Grants Service Funds Total Revenues Taxes 33,897 $ 9,988 $ -$ -$ 11,344 $ 3,914 $ 59,143 $ Licenses and permits 1,211 - - - - - 1,211 Intergovernmental 4,254 - 1,169 19,205 - 6,776 31,404 Charges for services 2,243 135 - 47 - 8 2,433 Use of money and property 1,355 - - 68 139 37 1,599 Miscellaneous 4,130 1 189 272 - 192 4,784 Total revenues 47,090 10,124 1,358 19,592 11,483 10,927 100,574 Expenditures Current: Public safety 17,570 206 - - - 1,332 19,108 Public works 6,885 - - 4,882 - 1,544 13,311 Culture and recreation 10,993 - - - - 273 11,266 Community and economic development 1,484 - 1,399 6,021 - 1,616 10,520 General government 6,658 412 - - - 121 7,191 Debt service: Principal - - - - 9,354 - 9,354 Interest - - - - 3,064 - 3,064 Capital outlay 1,975 - 2 7,700 - 8,013 17,690 Total expenditures 45,565 618 1,401 18,603 12,418 12,899 91,504 Excess (deficiency) of revenues over (under) expenditures 1,525 9,506 (43) 989 (935) (1,972) 9,070 Other Financing Sources (Uses) Sale of capital assets 104 - 118 - - - 222 Insurance Recoveries - - - - - 20 20 Transfers in 9,753 - - 619 3,128 3,242 16,742 Transfers out (792) (9,618) (75) (1,561) - (5,400) (17,446) Total other financing sources and (uses) 9,065 (9,618) 43 (942) 3,128 (2,138) (462) Net change in fund balances 10,590 (112) - 47 2,193 (4,110) 8,608 Fund Balances, Beginning 15,917 2,236 - (720) 11,759 12,931 42,123 Fund Balances, Ending 26,507 $ 2,124 $ -$ (673) $ 13,952 $ 8,821 $ 50,731 $ 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, 2010 (amounts expressed in thousands) 33 34 Net change in fund balances - total governmental funds 8,608 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets 10,552 $ Capital assets contributed 824 Depreciation expense (5,893) 5,483 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. Repayments of debt 9,354 Amortization of premium 76 9,430 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. 925 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 (79) Change in accrued post employment benefit obligations (861) Change in accrued interest on debt 18 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. (283) 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. 13 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 1,250 Change in net assets of governmental activities 24,504 $ The notes to the financial statements are an integral part of this statement. (amounts expressed in thousands) For the Year Ended June 30, 2010 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 5,677 $ 12,615 $ 11,636 $ 16,083 $ 3,272 $ 2,906 $ 52,189 $ 19,140 $ Receivables: Accounts and unbilled usage 24 1,228 795 775 42 240 3,104 24 Interest 8 178 278 41 29 4 538 27 Notes - - - - 997 - 997 - Advances to other funds - - - 4,316 - - 4,316 - Due from other governments - 578 185 35 46 304 1,148 72 Inventories - - 418 - - - 418 323 Total current assets 5,709 14,599 13,312 21,250 4,386 3,454 62,710 19,586 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 1,486 9,645 4,595 13,762 3,283 118 32,889 - Capital assets: Land 6,798 758 6,296 1,787 732 9,476 25,847 45 Buildings 24,908 59,611 23,875 908 5,601 4,779 119,682 831 Improvements other than buildings 166 7,371 2,351 144 9 357 10,398 50 Machinery and equipment 779 9,962 10,434 158 147 634 22,114 14,230 Infrastructure - 87,477 48,615 11,298 - 42,293 189,683 1,087 Accumulated depreciation (13,965) (62,850) (21,149) (9,611) (3,652) (12,193) (123,420) (10,292) Construction in progress 151 1,483 711 2,592 - 6,372 11,309 - Total noncurrent assets 20,323 113,457 75,728 21,038 6,120 51,836 288,502 5,951 Total assets 26,032 128,056 89,040 42,288 10,506 55,290 351,212 25,537 (continued) Business-type Activities - Enterprise Funds (amounts expressed in thousands) CITY OF IOWA CITY, IOWA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2010 36 Governmental Activities - Other Internal Wastewater Housing Enterprise Service Parking Treatment Water Sanitation Authority Funds Total Funds Liabilities Current liabilities: Accounts payable 20 $ 91 $ 163 $ 128 $ 22 $ 138 $ 562 $ 557 $ Contracts payable 35 306 227 308 - 291 1,167 - Accrued liabilities 151 171 242 256 81 61 962 2,509 Due to other governments - - 32 70 16 - 118 - Deferred revenue 280 - - - - - 280 - Interest payable 218 1,173 473 - - - 1,864 - Bonded debt payable (net of unamortized discounts) 422 1,899 1,704 - - - 4,025 - Total current liabilities 1,126 3,640 2,841 762 119 490 8,978 3,066 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 2 - 394 14 228 9 647 - Advances from other funds 1,523 - - - 18 1,505 3,046 - Bonded debt payable (net of unamortized discounts) 8,724 45,603 24,662 - - - 78,989 - Other Post Employment Benefits Obligation 65 65 101 97 17 38 383 25 Landfill closure/postclosure liability - - - 11,160 - - 11,160 - Total noncurrent liabilities 10,314 45,668 25,157 11,271 263 1,552 94,225 25 Total liabilities 11,440 49,308 27,998 12,033 382 2,042 103,203 3,091 Net Assets Invested in capital assets, net of related debt 9,692 56,310 44,768 7,276 2,837 51,718 172,601 5,951 Restricted by bond ordinance 1,267 8,472 3,660 - - - 13,399 - Restricted by state statute - - - 906 - - 906 - Restricted by grant agreement - - - - 3,283 - 3,283 - Unrestricted 3,633 13,966 12,614 22,073 4,004 1,530 57,820 16,495 Total net assets 14,592 $ 78,748 $ 61,042 $ 30,255 $ 10,124 $ 53,248 $ 248,009 22,446 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 7,905 Net assets of business-type activities 255,914 $ 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, 2010 (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 5,377 $ 12,637 $ 7,957 $ 8,096 $ 180 $ 1,696 $ 35,943 $ 15,930 $ Miscellaneous 26 73 28 57 210 37 431 49 Total operating revenues 5,403 12,710 7,985 8,153 390 1,733 36,374 15,979 Operating Expenses: Personal services 1,775 1,874 2,246 2,497 936 647 9,975 2,076 Commodities 248 645 987 393 45 265 2,583 2,133 Services and charges 1,126 2,531 1,920 4,540 6,743 532 17,392 8,966 3,149 5,050 5,153 7,430 7,724 1,444 29,950 13,175 Depreciation 905 4,178 2,180 630 143 1,139 9,175 1,242 Total operating expenses 4,054 9,228 7,333 8,060 7,867 2,583 39,125 14,417 Operating income (loss) 1,349 3,482 652 93 (7,477) (850) (2,751) 1,562 Nonoperating Revenues (Expenses): Gain on disposal of capital assets (15) - 5 - 32 208 230 111 Insurance Recoveries - - 33 - - - 33 - Operating grants - - 6 6 7,765 - 7,777 - Interest income 106 464 312 320 84 25 1,311 166 Interest expense (538) (2,173) (1,092) - - - (3,803) - Total nonoperating revenues (expenses) (447) (1,709) (736) 326 7,881 233 5,548 277 Income (loss) before capital contributions and transfers 902 1,773 (84) 419 404 (617) 2,797 1,839 Capital contributions - 2,115 572 6 25 3,852 6,570 42 Transfers in - 167 756 - 75 356 1,354 170 Transfers out (110) (202) (343) - (18) (141) (814) (6) Change in net assets 792 3,853 901 425 486 3,450 9,907 2,045 Net Assets, Beginning 13,800 74,895 60,141 29,830 9,638 49,798 20,401 Net Assets, Ending 14,592 $ 78,748 $ 61,042 $ 30,255 $ 10,124 $ 53,248 $ 22,446 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 795 Change in net assets of business-type activities 10,702 $ 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, 2010 (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 5,694 $ 12,736 $ 7,972 $ 8,339 $ 348 $ 1,737 $ 36,826 $ 15,938 $ Payments to suppliers (1,390) (3,218) (2,941) (4,426) (6,790) (929) (19,694) (10,794) Payments to employees (1,749) (1,848) (2,195) (2,431) (934) (622) (9,779) (1,810) Net cash flows from operating activities 2,555 7,670 2,836 1,482 (7,376) 186 7,353 3,334 Cash Flows From Noncapital Financing Activities Grants received - - - 1 7,771 5 7,777 - Transfers from other funds - 167 756 - 75 356 1,354 170 Transfers to other funds (110) (202) (343) - (18) (141) (814) (6) Repayment/(payment) of notes receivable - - - 5 347 - 352 - Advances from other funds (927) - - - - 206 (721) - Advances to other funds - - - 937 - - 937 - Net cash flows from noncapital financing activities (1,037) (35) 413 943 8,175 426 8,885 164 Cash Flows From Capital and Related Financing Activities Capital grants received - 879 41 - 25 3,626 4,571 - Acquisition and construction of property and equipment (211) (1,259) (1,338) (1,760) (196) (4,180) (8,944) (1,747) Proceeds from sale of property 1 - 5 - 449 223 678 117 Proceeds from insurance recoveries - - 33 - - - 33 - Proceeds from issuance of refunding debt (principal plus premium & less discount) 9,216 15,915 - - - - 25,131 - Principal paid on bonded debt (9,665) (23,325) (1,270) - - - (34,260) - Interest paid on bonded debt (609) (2,307) (1,217) - - - (4,133) - Net cash flows from capital and related financing activities (1,268) (10,097) (3,746) (1,760) 278 (331) (16,924) (1,630) Cash Flows From Investing Activities Interest on investments 191 474 324 486 109 40 1,624 267 Net increase (decrease) in cash and cash equivalents 441 (1,988) (173) 1,151 1,186 321 938 2,135 Cash and Cash Equivalents, Beginning 6,722 24,248 16,404 28,694 5,369 2,703 84,140 17,005 Cash and Cash Equivalents, Ending 7,163 $ 22,260 $ 16,231 $ 29,845 $ 6,555 $ 3,024 $ 85,078 $ 19,140 $ (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, 2010 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) 1,349 $ 3,482 $ 652 $ 93 $ (7,477) $ (850) $ (2,751) $ 1,562 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 905 4,178 2,180 630 143 1,139 9,175 1,242 Changes in: Receivables: Accounts and unbilled usage 11 27 10 182 (37) 4 197 (24) Due from other governments - (1) (2) 3 - - - (17) Inventories - - (17) - - - (17) 9 Accounts payable (16) (42) (15) (13) (5) (132) (223) 296 Accrued liabilities (7) 1 (1) 22 - - 15 229 Due to other governments - - (2) 6 3 - 7 - Deferred revenue 280 - - - - - 280 - Deposits - - (21) 1 (5) - (25) - Other Post Employment Benefits Obligation 33 25 52 44 2 25 181 37 Landfill closure/postclosure liability - - - 514 - - 514 - Total adjustments 1,206 4,188 2,184 1,389 101 1,036 10,104 1,772 Net cash flows from operating activities 2,555 $ 7,670 $ 2,836 $ 1,482 $ (7,376) $ 186 $ 7,353 $ 3,334 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 681 $ 369 $ - $ - $ 541 $ 1,591 $ 42 $ 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, 2010 41 Agency Funds Assets Equity in pooled cash and investments 235 $ Accounts receivable 5 Interest receivable 1 Total assets 241 $ Liabilities Accounts payable 19 $ Accrued liabilities 11 Due to agency 211 Total liabilities 241 $ The notes to the financial statements are an integral part of this statement. June 30, 2010 (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, 2010 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, 2010 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, 2010 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. The funds in this category are Project Green , which accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City, and the Library Foundation , which accounts for donations that are made to support the library development office. Proprietary funds distinguish operating revenues and expenses from 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 45 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 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, 2010 Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these are the General Fund, Water Fund, and the Equipment Maintenance Fund. Inventories included in the governmental funds are valued at cost using the first-in, first out (FIFO) method. The costs of governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on the FIFO method. Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, water mains, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City follows the policy of not capitalizing an asset with an initial, individual cost of less than $50,000 for infrastructure assets and $5,000 for remaining assets. Such assets are recorded at original purchase cost or at fair value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated useful lives: Infrastructure 3 – 100 years Buildings and structures 20 – 50 years Improvements other than buildings 10 – 50 years Vehicles 2 – 20 years Other equipment 5 – 30 years Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance. In the proprietary funds and the government-wide statements, they are amortized over the life of the bonds. Compensated Absences Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the accumulated sick leave at the time of termination on the basis of the employee’s then effective hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement. Pensions The provision for pension cost is recorded on the accrual basis (based on statutorily determined contribution rates), and the City’s policy is to fund pension costs as they accrue. 47 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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, 2010 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 $187,914,000 in revenues and other financing sources and by $211,643,000 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, 2010 the Capital Project Fund for bridge, street, and traffic control construction reported a deficit fund balance of $1,207,000. 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 2011 to cover the capital expenditures. At June 30, 2010 the Other Shared Revenue and Grants Fund reported a deficit balance of $673,000. 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. 49 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 3. Cash and Pooled Investments The City’s deposits in banks at June 30, 2010 were entirely covered by federal depository insurance, national credit union administration, or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open–end management investment companies registered with the Securities & Exchange Commission under the federal Investment Company Act of 1940; certain joint investment trusts; and warrants or improvement certificates of a drainage district. Investments are stated at fair value. In addition, the City had investments in the Iowa Public Agency Investment Trust, which are valued at an amortized cost of $46,091,065 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 $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Due to legal and budgetary reasons, the general fund is assigned a portion of the investment earnings associated with other funds. These funds are the employee benefits, other shared revenue, and sanitation funds. 50 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 4. Interfund Balances and Transfers Interfund balances for the year ended June 30, 2010, consisted of the following: Community Development Debt General Block Grant Service Sanitation Total Advances to: General -$ - $ - $ 1,287,850 $ 1,287,850 $ Community Development Block Grant 3,626 $ - - - 3,626 $ Other Shared Revenue and Grants 1,641,389 $ - 207,973 - 1,849,362 Parking - - 1,522,656 1,522,656 Housing Authority 18,000 - - 18,000 Nonmajor enterprise - - - 1,505,097 1,505,097 Total 1,645,015 $ 18,000 $ 207,973 $ 4,315,603 $ 6,186,591 $ Advances from Interfund balances at June 30, 2010, include advances due to/from other funds. Advances to/from other funds represent amounts for construction loans, land and negative cash balance funding. $1,462,780 of the $1,505,097 advances to the Nonmajor Enterprise Funds and $1,395,840 of the $1,522,656 advance to the Parking Fund are not expected to be repaid within the next year. $1,179,296 of the $1,287,850 advances to the General Fund and $197,297 of the $207,973 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. The $3,626 advance to the Community Development Block Grant Fund and the $1,641,389 advance to the Other Shared Revenue and Grants Fund are expected to be repaid within the next year. 51 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Interfund transfers for the year ended June 30, 2010, consisted of the following: Other Community Shared Employee Development Revenue and Nonmajor General Benefits Block Grant Grants Governmental Transfer to: General - $ 9,229,898 $ - $ 103,488 $ 281,893 $ Debt service 79,776 - - 198,918 2,781,075 Other shared revenue and grants 22,898 388,457 - - 207,812 Nonmajor governmental 359,883 - 30,000 1,202,076 1,160,646 Wastewater treatment 96,625 - - - 62,770 Water 106,086 - - 3,954 646,102 Housing Authority - - 45,055 29,750 - Nonmajor enterprise 115,664 - - - 240,380 Internal Service 11,350 - - 23,247 18,343 Total Transfer to 792,282 $ 9,618,355 $ 75,055 $ 1,561,433 $ 5,399,021 $ 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, 2010 Wastewater Housing Nonmajor Internal Total Parking Treatment Water Authority Enterprise Service Transfer from -$ 20,216 $ 34,604 $ 18,000 $ 64,781 $ - $ 9,752,880 $ - - - - 67,857 - 3,127,626 - - - - - - 619,167 - 181,228 308,468 - - - 3,242,301 - - - - 7,500 - 166,895 - - - - - - 756,142 - - - - - - 74,805 - - - - - - 356,044 109,532 - - - - 6,884 169,356 109,532 $ 201,444 $ 343,072 $ 18,000 $ 140,138 $ 6,884 $ 18,265,216 $ Transfer from 53 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 5. Capital Assets Capital asset activity for the year ended June 30, 2010, was as follows: Beginning July 1, 2009 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2010 Governmental activities: Capital assets, not being depreciated: Land 17,482,906 $ 4,395,031 $ 40,000 $ 21,837,937 $ Construction in progress 14,305,568 3,181,727 11,646,024 5,841,271 Total capital assets, not being depreciated 31,788,474 7,576,758 11,686,024 27,679,208 Capital assets, being depreciated: Buildings 61,281,261 1,640,965 408,117 62,514,109 Improvements other than buildings 5,345,298 127,102 100,817 5,371,583 Machinery and equipment 37,238,345 6,667,476 1,698,333 42,207,488 Infrastructure 97,342,237 8,766,289 - 106,108,526 Total capital assets being depreciated 201,207,141 17,201,832 2,207,267 216,201,706 Less accumulated depreciation for: Buildings 16,307,718 1,561,261 396,048 17,472,931 Improvements other than buildings 1,624,503 210,103 42,343 1,792,263 Machinery and equipment 24,849,371 3,001,630 1,551,524 26,299,477 Infrastructure 22,883,912 2,361,566 - 25,245,478 Total accumulated depreciation 65,665,504 7,134,560 1,989,915 70,810,149 Total capital assets, being depreciated, net 135,541,637 10,067,272 217,352 145,391,557 Governmental activities capital assets, net 167,330,111 $ 17,644,030 $ 11,903,376 $ 173,070,765 $ 54 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Beginning July 1, 2009 Acquisitions and Transfers Disposals and Transfers Balance June 30, 2010 Business-type activities: Capital assets, not being depreciated: Land 25,783,133 $ 142,947 $ 78,983 $ 25,847,097 $ Construction in progress 6,204,686 7,357,258 2,253,190 11,308,754 Total capital assets, not being depreciated 31,987,819 7,500,205 2,332,173 37,155,851 Capital assets, being depreciated: Buildings 119,026,032 1,115,974 460,165 119,681,841 Improvements other than buildings 10,348,442 49,319 - 10,397,761 Machinery and equipment 21,699,054 747,735 330,998 22,115,791 Infrastructure 185,920,777 3,761,930 - 189,682,707 Total capital assets being depreciated 336,994,305 5,674,958 791,163 341,878,100 Less accumulated depreciation for: Buildings 44,159,445 3,253,467 23,548 47,389,364 Improvements other than buildings 3,115,489 436,340 - 3,551,829 Machinery and equipment 12,434,263 1,223,607 315,428 13,342,442 Infrastructure 54,868,265 4,269,818 - 59,138,083 Total accumulated depreciation 114,577,462 9,183,232 338,976 123,421,718 Total capital assets, being depreciated, net 222,416,843 (3,508,274) 452,187 218,456,382 Business-type activities capital assets, net 254,404,662 $ 3,991,931 $ 2,784,360 $ 255,612,233 $ Depreciation expense was charged to functions as follows: Governmental activities: Public safety 632,481 $ Public works 3,059,686 Culture and recreation 1,887,155 Community and economic development 37,061 General government 277,029 Internal service funds 1,241,148 Total depreciation expense - governmental activities 7,134,560 $ Business-type activities: Parking 905,221 $ Wastewater treatment 4,178,373 Water 2,180,524 Sanitation 629,714 Housing authority 143,084 Nonmajor enterprise 1,139,062 Total depreciation expense - business-type activities 9,175,979 $ 55 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: General obligation bonds $ 80,654,160 $ - $ 9,354,538 $ 71,299,622 $ 9,570,840 Plus: Unamortized Premium 568,373 - 76,258 492,115 76,258 $ 81,222,533 $ - $ 9,430,796 $ 71,791,737 $ 9,647,098 Business-type activities: General obligation bonds $ 4,340,840 -$ $ 590,462 $ 3,750,378 $ 604,160 Less: Unamortized Discounts 23,053 - 3,842 19,211 3,842 Total general obligation bonds 4,317,787 - 586,620 3,731,167 600,318 Revenue bonds 87,815,000 24,190,000 33,670,000 78,335,000 3,370,000 Plus: Unamortized Premium 60,855 940,615 54,582 946,888 54,582 Total revenue bonds 87,875,855 25,130,615 33,724,582 79,281,888 3,424,582 $ 92,193,642 $ 25,130,615 $ 34,311,202 $ 83,013,055 $ 4,024,900 General Obligation Bonds Various issues of general obligation bonds totaling $75,050,000 are outstanding as of June 30, 2010. The bonds have interest rates ranging from 1.5% to 5.6% and mature in varying annual amounts ranging from $95,000 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, 2010 Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending June 30 Principal Interest Principal Interest 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 2,082,934 641,555 96,592 2014 8,558,446 1,771,924 636,554 71,997 2015 8,149,748 1,445,311 655,252 47,435 2016-2020 23,000,000 3,217,024 590,000 33,188 2021-2025 3,290,000 274,895 - - Total 71,299,622 $ 13,975,852 $ 3,750,378 $ 509,309 $ Governmental Activities Business-type Activities Revenue Bonds As of June 30, 2010, the following unmatured revenue bond issues are outstanding: Wastewater Parking Treatment Water Original issue amount $ 9,110,000 $ 48,020,000 $ 25,365,000 Interest rates 3.0% to 5.0% 3.0% to 5.0% 2.0% to 4.65% Annual maturities $ 420,000 to $ 260,000 to $ 355,000 to $ 770,000 $ 2,750,000 $ 835,000 Amount outstanding $ 9,110,000 $ 46,525,000 $ 22,700,000 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Ending Business-type Activities June 30 Principal Interest 2011 3,370,000 3,346,900 2012 6,315,000 2,893,609 2013 6,625,000 2,688,718 2014 5,075,000 2,498,788 2015 5,255,000 2,319,945 2016-2020 29,525,000 8,276,465 2021-2025 20,560,000 2,366,921 2026-2030 1,610,000 38,163 78,335,000 $ 24,429,509 $ 57 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 The revenue bond ordinances required that wastewater treatment, parking system, and water revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account Amount (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Parking Revenue and Water Revenue bonds – maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds – 125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds and $5,000 per month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. On November 23, 2009, the City issued $9,110,000 of parking revenue bonds for a current refunding of $9,275,000 of parking revenue bonds. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $1,554,933 in future debt service payments and an economic gain of $1,197,510. On April 15, 2010, the City issued $15,080,000 of wastewater revenue bonds for a current refunding of $16,240,000 of wastewater revenue bonds on July 1, 2010. 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 $1,892,479 in future debt service payments and an economic gain of $1,686,527. 58 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2010, are comprised of the following issues: Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2010 General Obligation Bonds: Multi-Purpose and Library Construction May 2002 29,100,000 $ 3.5 - 5.0 6/21 14,875,000 $ Refunded Multi-Purpose (1) Oct. 2002 10,600,000 2.5 - 4.0 6/15 2,090,000 Multi-Purpose Nov. 2003 5,570,000 2.5 - 3.6 6/14 2,205,000 Taxable-Urban Renewal Mar. 2004 7,305,000 4.0 - 5.4 6/23 6,320,000 Multi-Purpose Mar. 2005 7,020,000 3.0 - 4.0 6/15 3,820,000 Multi-Purpose Jun. 2006 6,265,000 3.625 - 4.0 6/16 4,105,000 Multi-Purpose Jun. 2006 1,000,000 5.5 - 5.6 6/16 675,000 Refunded Water Construction (2) Sep. 2006 3,350,000 3.6 - 3.75 6/17 2,105,000 Multi-Purpose May 2007 8,870,000 3.75 6/17 6,545,000 Multi-Purpose June 2008 9,150,000 3.25 - 3.75 6/18 7,545,000 Refunded Multi-Purpose Oct. 2008 17,005,000 3.0 - 3.75 6/18 13,235,000 Multi-Purpose June 2009 6,685,000 2.5 - 4.0 6/19 6,085,000 Taxable- Housing Improvements June 2009 505,000 1.5 - 3.0 6/14 405,000 Refunded Multi-Purpose June 2009 5,840,000 2.0 - 4.0 6/16 5,040,000 Total General Obligation Bonds 75,050,000 $ Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2010 Revenue Bonds: Refunded Parking Bonds (3) Nov. 2009 9,110,000 $ 3.0 - 5.0 7/24 9,110,000 $ Refunded Wastewater Treatment Bonds (4) Oct. 2008 24,280,000 3.0 - 5.0 7/22 22,785,000 Refunded Wastewater Treatment Bonds (5) May 2009 8,660,000 3.5 - 5.0 7/25 8,660,000 Refunded Wastewater Treatment Bonds (6) Apr. 2010 15,080,000 3.0 - 4.0 7/20 15,080,000 Water Bonds Oct. 2002 8,500,000 2.0 - 4.65 7/22 6,165,000 Refunded Water Bonds (7) Oct. 2008 7,115,000 3.0 - 4.375 7/24 6,785,000 Refunded Water Bonds (8) May 2009 9,750,000 4.0 - 4.5 7/25 9,750,000 Total Revenue Bonds 78,335,000 153,385,000 $ 59 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 (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 December 1999 Parking 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 December 2001 and April 2002 Wastewater Revenue Bonds. (7) This bond issue refunds the May 1999 Water Revenue Bonds. (8) 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, 2010, there were two series of Industrial Development Revenue Bonds and Facility Refunding Revenue Bonds outstanding, with an aggregate principal amount payable of $38,442,139. Debt Legal Compliance Legal Debt Margin: As of June 30, 2010, the general obligation debt issued by the City did not exceed its legal debt limit computed as follows: Assessed valuation: Real property $ 4,307,005,765 Utilities 72,469,098 Total valuation $ 4,379,474,863 Debt limit, 5% of total assessed valuation $ 218,973,743 Debt applicable to debt limit: General obligation bonds 75,050,000 Legal debt margin $ 143,923,743 60 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 7. Other Long-term Liabilities Notes Payable A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the loan are 1%, interest only payments for twenty years with a final balloon payment of $211,000 due on August 1, 2025. Employee Vested Benefits Changes in Long-Term Liabilities - Employee Vested benefits Employee Vested Benefits activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: $ 2,030,118 1,156,913 $ 1,087,269 $ 2,099,762 $ 1,133,652 $ Business-type activities: $ 510,449 $ 291,120 278,551 $ $ 523,018 288,275 $ 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 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 Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs Landfill Closure Post-closure care activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Business-type activities: $ 10,645,935 $ 513,994 - $ $ 11 ,159,929 - $ Changes in Long-Term Liabilities - Notes Payable Note Payable activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: 211,000 - - 211,000 - 61 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 date the landfill no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and post-closure care costs as of June 30, 2010, is approximately $11,159,929, which is based on 85.1% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately $4,692,300 will be recognized as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended June 30, 2019. The estimated total current cost of the landfill closure and post-closure care costs at June 30, 2010, was determined by engineers from Howard R. Green Company and approximated $13,113,900. 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, 2010. 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, 2010, the Sanitation Fund had $12,842,479 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 July 1, 2009 Current Year June 30, 2010 Governmental activities: $ 464,700 $ 885,450 $ 1,350,150 Business-type activities: $ 201,091 $ 195,247 $ 396,338 Net OPEB Obligation 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. 62 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Life insurance – The option of converting the employee’s City-paid policy to an individual policy at the individual’s expense with the City’s life insurance carrier. Long-term disability – For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee’s City-paid group policy to a personal policy at the individual’s expense with the City’s long-term disability insurance carrier. The above options, while at the individual’s own expense, are included within the City’s overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Funding Policy : The contribution requirements of plans members are established and may be amended by the City. The City currently finances the benefit plans on a pay-as-you-go basis. Annual OPEB Cost and Net OPEB Obligation : The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the components of the City’s annual OPEB cost for the year ended June 30, 2010, the amount actually contributed to the plans, and changes in the City’s net OPEB obligation: Annual required contribution $1,288,466 Interest on net OPEB obligation 26,632 Adjustment to annual required contribution (23,779) Annual OPEB costs 1,291,319 Contributions made (210,622) Increase in net OPEB obligation 1,080,697 Net OPEB obligation beginning of year 665,791 Net OPEB obligation end of year $1,746,488 For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding requirements and the actual contributions for the year ended June 30, 2010. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plans and the net OPEB obligation as of June 30, 2010 are summarized as follows: Percentage of Annual Annual OPEB Cost Net OPEB Year Ended OPEB Cost Contributed from City Obligation June 30, 2010 $1,291,319 16.3% $1,746,488 63 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Funded Status and Funding Progress : As of July 1, 2008, the most recent actuarial valuation date for the period July 1, 2009 through June 30, 2010, the actuarial accrued liability was $15,235,196, with no actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $15,235,196. The covered payroll (annual payroll of active employees covered by the plans) was $29,842,842 and the ratio of the UAAL to covered payroll was 51.1%. As of June 30, 2010, there were no trust fund assets. Actuarial Methods and Assumptions : Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumption about future employments, mortality, and the health care cost trend. Actuarially determined amounts are subject to continual review as actual results are compared with past expectations and new estimates are made about the future. 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 plan 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. 64 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 8. Short Term Debt During FY10, the City issued multiple short term loans totaling $497,500. The loans mature one year from the date of the loan and bear interest rates ranging from 1% to 3.25%. The loans were used to fund the acquisition and rehabilitation of single family homes as part of the UniverCity Neighborhood Partnership Program (UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The City has secured a $1.25 million I-JOBS grant that will allow the program to acquire and rehabilitate 25 homes in the designated UniverCity Neighborhoods. These short term loans will be repaid with the proceeds from the sale of the rehabilitated homes. 9. 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, 2010 the City purchased property, liability, and workers’ compensation insurance under the program that provides for a $100,000 self-insured retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $400,000 self-insured retention on workers’ compensation losses. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. Settled claims have not exceeded this commercial coverage in any of the past twenty three fiscal years. The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund’s accrued liabilities balance includes a claims liability at June 30, 2010 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, 2010 and 2009 are as follows: Changes in Short Term Liabilities – Loans Payable Loans Payable activity for the year ended June 30, 2010, was as follows: Due Within July 1, 2009 Issues Retirements June 30, 2010 One Year Governmental activities: - $ 497,500 - $ $ 497,500 $ 497.500 65 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2008 – 2009 $ 1,300,000 $ 889,000 $ 952,000 $ 1,237,000 2009 – 2010 1,237,000 1,127,000 762,000 1,602,000 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 $9,034,731. 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, 2010 and 2009 are as follows: Current-Year Beginning-of- Claims and Balance at Fiscal-Year Changes in Claim Fiscal Liability Estimates Payments Year-End 2008 – 2009 $ 688,000 $ 6,649,000 $ 6,500,000 $ 837,000 2009 – 2010 837,000 5,879,000 6,002,000 714,000 66 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 10. Contractual Commitments and Contingencies The total outstanding contractual commitments as of June 30, 2010 are as follows: Project Amount Bridge, street and traffic Paving and bridge construction, control construction engineering design and consulting 2,436,176 $ Other construction Public works construction, culture & recreation construction, and fire station construction 2,615,333 Parking Garage improvements and repair & maintenance 60,302 Wastewater Facility consolidation consulting and wastewater main repairs 967,476 Water Water main construction and flood mitigation construction 329,351 Sanitation Landfill consulting and recycling facility construction 4,112,281 Airport Runway grading and paving 37,776 Stormwater Stormwater system improvements 449,961 11,008,656 $ Fund 11. 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. 67 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 12. Pension and Retirement Systems Municipal Fire and Police Retirement System of Iowa The City is a participating employer in the Municipal Fire and Police Retirement System of Iowa (MFPRSI or the Plan), which is a cost-sharing multiple-employer defined benefit public police and fire employees retirement system. All fire fighters and police officers appointed under civil service participate in the Plan. The Plan provides retirement, disability, and death benefits that are established under state statute. The Plan issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to Municipal Fire and Police Retirement System of Iowa, 7155 Lake Drive Suite 201, West Des Moines, Iowa 50266 or the report may be obtained from website www.mfprsi.org under the publications link. A member may retire at age 55 with 22 years of employment, and receive full benefits that are equal to 66% of the member’s average final compensation. Additionally, members retiring with more than 22 years of service will receive an additional 2% of the member’s average final compensation for up to 8 years of additional service. Other benefits are also calculated at varying percentages of the average final compensation. Benefits vest after four years of service. Member contribution rates are established by state statute. For the fiscal year ended June 30, 2010, members contributed 9.40%. The City’s contribution rate is based upon an actuarially determined normal contribution rate. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, the total then being divided by 1% of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions. Legislatively appropriated contributions from the state to the plan may further reduce the City’s contribution rate. However, the City’s contribution rate may not be less than 17% of earnable compensation. The City was required to contribute 19.9% of earnable compensation of each member in 2010, 18.75% of earnable compensation in 2009, and 25.48% of earnable compensation in 2008. The contributions paid by the City for the years ended June 30, 2008, 2009, and 2010, were $1,910,454, $1,434,031, and $1,349,558 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. 68 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 All employees eighteen or older, except temporary employees of six months or less of employment duration, who do not participate in any other public retirement system in the state are eligible and must participate in IPERS. The pension plan provides retirement and death benefits that are established by state statute. Generally, a member may retire at the age of 65, or any time after age 62 and 20 years or more of service, or when age plus years of service equals or exceeds 88, and receive unreduced (for age) benefits. Members may also retire at the age of 55 or more at reduced benefits. Benefits vest after 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 4.5% of their annual covered salary and the City is required to contribute 6.95% of annual covered payroll. Contribution requirements are established by state statute. The City’s contributions to IPERS for the years ended June 30, 2008, 2009, and 2010, were $1,534,552, $1,659,955, and $1,767,350 respectively, and were equal to the required contributions for each year. 13. 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 69,086 people and has over 23,000 customers. The average daily use for 2010 was 5.48 million gallons per day (MGD). A peak flow of 10.6 MGD was experienced during the summer of 1989. Water Sources : The primary source of water for the City is the alluvial collector wells along the Iowa River. Four collector wells can provide approximately 11.0 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; four Siluran aquifer wells which can provide 1.0 MGD; a sand pit that can provide 3.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 20 MGD maximum capacity. Water Treatment Processes : The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening (coagulation/flocculation/sedimentation), and granular activated charcoal filtration processes with fluoridation and free chlorination. The grade four water facility employs operators that perform over 200 water quality tests per day in-house and collect samples for testing at the University Hygienic Laboratory. This testing ensures that the water meets all of the Safe Drinking Water Act Standards. 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. 69 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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, 2009. Water Service Charge Minimums (includes up to the first 100 cubic feet (c.f.)) Meter Size Meter Size (Inches) Charge (Inches) Charge 5/8” $6.41 2” $22.14 3/4” 7.00 3” 40.91 1” 8.26 4” 71.37 1 1/2” 16.47 6” 143.61 Monthly Usage in excess of 100 cubic feet (c.f.) 101 – 3,000 $2.99 per 100 c.f. 3,001 and over $2.15 per 100 c.f. Single Purpose Meter Charges First 100 (c.f) Minimum Monthly Charge Usage in excess of 100 cubic feet (c.f.) $2.99 per 100 c.f. Changes in water rates over the last ten fiscal years. 2001 0% 2002 0% 2003 - 5% 2004 - 5% 2005 0% 2006 0% 2007 - 5% 2008 0% 2009 0% 2010 0% 70 2010 2009 2008 Operating Revenues: Charges for services 7,957 $ 8,107 $ 8,195 $ Miscellaneous 28 86 134 Total operating revenues 7,985 8,193 8,329 Operating Expenses: Personal services 2,246 2,316 2,160 Commodities 987 768 1,348 Services and charges 1,920 2,642 1,840 5,153 5,726 5,348 Depreciation 2,180 2,124 2,065 Total operating expenses 7,333 7,850 7,413 Operating income 652 343 916 Nonoperating Revenues (Expenses): Gain ( Loss) on disposal of capital assets 5 - (2) Insurance Recoveries 33 - - Operating Grants 6 15 - Interest income 312 625 931 Interest expense (1,092) (1,351) (1,426) Total nonoperating revenues (expenses) (736) (711) (497) Income before capital contributions and transfers (84) (368) 419 Capital contributions 572 132 314 Transfers in 756 469 689 Transfers out (343) (698) (820) Change in net assets 901 (465) 602 Net Assets, Beginning 60,141 60,606 60,004 Net Assets, Ending 61,042 $ 60,141 $ 60,606 $ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS WATER SYSTEM STATEMENT OF REVENUES, EXPENSES fiscal years ended June 30, 2010, 2009, and 2008. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Financial Information : The following table summarizes the results of operations for the Water System for the 71 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2010 and the budget for the fiscal year ended June 30, 2011 on a cash basis. WATER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2010 (amounts expressed in thousands) FY11 Actual Budget Percentage Budget Charges for services $ 7,997 $ 8,390 95.32% $ 8,397 Interest income 323 337 95.85% 190 Miscellaneous 141 49 287.76% 49 Operating grants 41 1,749 2.34% 2,272 Transfers from other funds 4 336 1.19% 336 Bond sales - - 0.00% - Total Receipts $ 8,506 $ 10,861 78.32% $ 11,244 Personal services $ 2,346 $ 2,492 94.14% $ 2,481 Commodities 640 823 77.76% 806 Services and charges 2,158 2,574 83.84% 2,796 Capital outlay 677 5,062 13.37% 5,310 Transfer to capital project funds 308 1,300 23.69% 982 Transfers to other funds 19 - - - Operating subsidy 20 20 100.00% 20 Debt service payments 12,767 12,768 99.99% 2,757 Total Disbursements $ 18,935 $ 25,039 75.62% $ 15,152 Sewer System The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 254 miles of sanitary sewers, 18 lift stations, and 2 treatment plants. There are a total of 25.60 (FTE) employees who work in the Wastewater Division. This division serves 69,086 people and has over 23,000 customers. The average daily combined treatment flow for 2010 was 11.75 million gallons per day (MGD). The North Plant was constructed in 1935 and the South Plant was completed in 1990 and upgraded in 2002. The connecting of the North and South Plants was completed in 1998. The City has the capability to divert all wastewater treatment to the South Plant and control all operations remotely through computer systems. The combined wastewater treatment system design has a maximum daily treatment capacity of 41.10 MGD. Both plants are in compliance with federal clean water standards. 72 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 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, 2009. 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. 2001 5% 2002 5% 2003 0% 2004 0% 2005 0% 2006 0% 2007 8% 2008 0% 2009 5% 2010 0% 73 2010 2009 2008 Operating Revenues: Charges for services 12,637 $ 12,557 $ 12,318 $ Miscellaneous 73 84 75 Total operating revenues 12,710 12,641 12,393 Operating Expenses: Personal services 1,874 1,848 1,651 Commodities 645 853 606 Services and charges 2,531 2,501 2,324 5,050 5,202 4,581 Depreciation 4,178 4,155 4,181 Total operating expenses 9,228 9,357 8,762 Operating income 3,482 3,284 3,631 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets - 131 (5) Operating grants - 1 - Interest income 464 820 944 Interest expense (2,173) (2,578) (3,041) Total nonoperating revenues (expenses) (1,709) (1,626) (2,102) Income before capital contributions and transfers 1,773 1,658 1,529 Capital contributions 2,115 266 577 Transfers in 167 148 30 Transfers out (202) (296) (69) Change in net assets 3,853 1,776 2,067 Net Assets, Beginning 74,895 73,119 71,052 Net Assets, Ending 78,748 $ 74,895 $ 73,119 $ Last Three Fiscal Years (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES fiscal years ended June 30, 2010, 2009, and 2008. CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 Financial Information : The following table summarizes the results of operations for the Water System for the 74 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2010 and the budget for the fiscal year ended June 30, 2011 on a cash basis. SEWER SYSTEM BUDGET AND ACTUALS (CASH BASIS) For the Year Ended June 30, 2010 (amounts expressed in thousands) FY11 Actual Budget Percentage Budget Charges for services $ 12,671 $ 13,413 94.47% $ 13,427 Interest income 473 593 79.76% 100 Miscellaneous 65 40 162.50% 57 Operating grants 879 20,563 4.27% 5,700 Local option sales tax 64 3,690 0.00% 9,286 Bond sales 15,869 15,900 99.81% - Total Receipts $ 30,021 $ 54,199 55.39% $ 28,570 Personal services $ 1,913 $ 1,895 100.95% $ 1,962 Commodities 542 580 93.45% 547 Services and charges 2,588 2,578 100.39% 2,879 Capital outlay 1,133 27,884 4.06% 19,396 Transfer to capital project funds 182 784 23.21% 774 Operating subsidy 20 20 100.00% 20 Debt service payments 16,087 16,088 99.99% 24,174 Total Disbursements $ 22,465 $ 49,829 45.08% $ 49,752 75 CITY OF IOWA CITY, IOWA NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2010 14. Subsequent events On August 2, 2010, the City of Iowa City received and awarded bonds for General Obligation Bonds, Series 2010B in the amount of $7,420,000. The bonds were issued to finance multiple capital improvement projects. 15. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued statements not yet implemented by the City. The statement, which might impact the City’s financial statements is as follows: Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions , issued March 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 taxes 45,318 $ - $ 45,318 $ Delinquent property taxes (2) - (2) Tax increment financing taxes 3,919 - 3,919 Other city taxes 8,539 - 8,539 Licenses and permits 1,214 12 1,226 Intergovernmental 27,038 12,528 39,566 Charges for services 5,837 34,648 40,485 Use of money and property 781 1,987 2,768 Miscellaneous 3,175 2,340 5,515 Total revenues 95,819 51,515 147,334 Expenditures/Expenses: Public safety 18,312 - 18,312 Public works 12,737 - 12,737 Culture and recreation 11,412 - 11,412 Community and economic development 19,140 - 19,140 General government 7,091 - 7,091 Debt service 13,181 - 13,181 Capital outlay 10,224 - 10,224 Business-type - 76,221 76,221 Total expenditures/expenses 92,097 76,221 168,318 Excess (deficiency) of revenues over (under) expenditures/expenses 3,722 (24,706) (20,984) Other financing sources and uses, net 1,547 24,940 26,487 Net change in fund balances 5,269 234 5,503 Balances, beginning of year 48,564 102,857 151,421 Balances, end of year 53,833 103,091 156,924 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, 2010 (dollar amounts expressed in thousands) BUDGETARY BASIS 78 Final to Actual Variance - Positive Original Final (Negative) 45,393 $ 45,393 $ (75) $ - 6 (8) 2,839 4,045 (126) 1,588 9,326 (787) 1,325 1,351 (125) 24,410 111,976 (72,410) 39,592 40,213 272 3,165 2,533 235 5,756 8,598 (3,083) 124,068 223,441 (76,107) 18,750 20,483 2,171 13,297 13,948 1,211 11,723 11,884 472 5,500 35,671 16,531 8,328 7,968 877 13,146 13,182 1 20,290 67,235 57,011 49,456 122,790 46,569 140,490 293,161 124,843 (16,422) (69,720) 48,736 10,185 39,754 (13,267) (6,237) (29,966) 35,469 104,883 152,413 98,646 122,447 Budgeted Amounts 79 Accrual Modified Accrual Budget Basis Adjustments Basis Revenues 95,819 $ 4,755 $ 100,574 $ Expenditures 92,097 (593) 91,504 Net 3,722 5,348 9,070 Other financing sources (uses) 1,547 (2,009) (462) Beginning Fund Balances 48,564 $ (6,441) $ 42,123 $ Ending Fund Balances 53,833 $ (3,102) $ 50,731 $ Accrual Accrual Budget Basis Adjustments Basis Revenues 51,515 $ (5,790) $ 45,725 $ Expenditures 76,221 (33,293) 42,928 Net (24,706) 27,503 2,797 Other financing sources (uses) 24,940 (17,830) 7,110 Beginning Fund Balances 102,857 135,245 $ 238,102 Ending Fund Balances 103,091 $ 144,918 $ 248,009 $ 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, 2010 (dollar amounts expressed in thousands) 80 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended June 30, 2010 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 $99,373,000 and expenditures by $152,671,000. The budget amendments were primarily due to changes in breadth and timing of capital improvement projects and mediation costs and related grants due to the flood in the summer of 2008. 81 City of Iowa City, Iowa Note to Required Supplementary Information – Schedule of Funding Progress for Health and Dental Plans For the Year Ended June 30, 2010 Actuarial Valuation Date Fiscal Year Actuarial Value of Assets Actuarial Accrued Liability (AAL) Unfunded AAL (UAAL) Funded Ratio Covered Payroll UAAL As a Percentage of Covered Payroll July 1, 2008 June 30, 2009 $ - $ 15,235,196 $ 15,235,196 0.00% $ 32,804,905 46.44% July 1, 2008 June 30, 2010 $ - $ 15,235,196 $ 15,235,196 0.00% $ 32,804,905 46.44% 82 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Economic Development Fund – accounts for revenue and expenditures of economic development activities. Johnson County Council of Governments Fund – accounts for the financial activities of the metropolitan/rural cooperative planning organization. CAPITAL PROJECTS FUNDS Capital Projects Funds are utilized to account for all resources used in the acquisition and construction of capital facilities and other major fixed assets, with the exception of those that are financed by proprietary fund monies. The fund in this category is as follows: Bridge, Street, and Traffic Control Construction Fund – accounts for the construction or replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting systems. Other Construction Fund – accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. 83 Bridge, Johnson Street, and County Traffic Economic Council of Control Other Development Governments Construction Construction Total Assets Equity in pooled cash and investments 143 $ 70 $ 918 $ 223 $ 1,354 $ Receivables: Property tax 7 - - - 7 Accounts and unbilled usage - - 16 137 153 Interest 4 - - 15 19 Due from other governments - 42 997 2,480 3,519 Assets held for resale - - 165 - 165 Restricted assets: Equity in pooled cash and investments - - - 10,424 10,424 Total assets 154 $ 112 $ 2,096 $ 13,279 $ 15,641 $ Liabilities and Fund Balances Liabilities: Accounts payable -$ 2 $ 4 $ 2,238 $ 2,244 $ Contracts payable - - 302 484 786 Accrued liabilities - 23 16 17 56 Due to other governments - - 1,962 - 1,962 Deferred revenue - - 1,019 753 1,772 Total liabilities - 25 3,303 3,492 6,820 Fund balances: Reserved for: Assets held for resale - - 165 - 165 Encumbrances - - - 372 372 Unreserved Designated for future improvements - - - - - Undesignated 154 87 (1,372) 9,415 8,284 Total fund balances 154 87 (1,207) 9,787 8,821 Total liabilities and fund balances 154 $ 112 $ 2,096 $ 13,279 $ 15,641 $ Capital Projects Special Revenue CITY OF IOWA CITY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2010 (amounts expressed in thousands) 84 Bridge, Johnson Street, and County Traffic Economic Council of Control Other Development Governments Construction Construction Total Revenues Property taxes 3,898 $ -$ 16 $ -$ 3,914 $ Intergovernmental - 285 2,884 3,607 6,776 Charges for services - - 8 - 8 Use of money and property 7 - - 30 37 Miscellaneous - 3 6 183 192 Total revenues 3,905 288 2,914 3,820 10,927 Expenditures Current: Public safety - - - 1,332 1,332 Public works - - 1,347 197 1,544 Culture and recreation - - - 273 273 Community and economic development 974 640 - 2 1,616 General government - - - 121 121 Capital outlay - 6 2,720 5,287 8,013 Total expenditures 974 646 4,067 7,212 12,899 Excess (deficiency) of revenues over (under) expenditures 2,931 (358) (1,153) (3,392) (1,972) Other Financing Sources (Uses) Insurance Recoveries - - - 20 20 Transfers in - 380 2,210 652 3,242 Transfers out (3,155) - (381) (1,864) (5,400) Total other financing sources and (uses) (3,155) 380 1,829 (1,192) (2,138) Net change in fund balances (224) 22 676 (4,584) (4,110) Fund Balances, Beginning 378 65 (1,883) 14,371 12,931 Fund Balances, Ending 154 $ 87 $ (1,207) $ 9,787 $ 8,821 $ NONMAJOR GOVERNMENTAL FUNDS AND CHANGES IN FUND BALANCES COMBINING STATEMENT OF REVENUES, EXPENDITURES, CITY OF IOWA CITY, IOWA Capital Projects Special Revenue For the Year Ended June 30, 2010 (amounts expressed in thousands) 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 293 $ 1,314 $ 1,299 $ 2,906 $ Receivables: Accounts and unbilled usage - 60 180 240 Interest - 2 2 4 Due from other governments 304 - - 304 Total current assets 597 1,376 1,481 3,454 Noncurrent assets: Restricted assets: Equity in pooled cash and investments 9 - 109 118 Capital assets: Land 7,309 2,167 - 9,476 Buildings 4,038 - 741 4,779 Improvements other than buildings 357 - - 357 Machinery and equipment 281 259 94 634 Infrastructure 7,337 34,956 - 42,293 Accumulated depreciation (4,138) (7,748) (307) (12,193) Construction in progress 6,286 86 - 6,372 Total noncurrent assets 21,479 29,720 637 51,836 Total assets 22,076 31,096 2,118 55,290 Liabilities Current liabilities: Accounts payable 23 2 113 138 Contracts payable 249 42 - 291 Accrued liabilities 3 15 43 61 Total current liabilities 275 59 156 490 Noncurrent liabilities: Liabilities payable from restricted assets: Deposits 9 - - 9 Advances from other funds 1,505 - - 1,505 Other Post Employment Benefits Obligation 8 4 26 38 Total noncurrent liabilities 1,522 4 26 1,552 Total liabilities 1,797 63 182 2,042 Net Assets Invested in capital assets, net of related debt 21,470 29,720 528 51,718 Unrestricted (1,191) 1,313 1,408 1,530 Total net assets 20,279 $ 31,033 $ 1,936 $ 53,248 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2010 88 Cable Airport Stormwater Television Total Operating Revenues: Charges for services 289 $ 617 $ 790 $ 1,696 $ Miscellaneous 36 1 - 37 Total operating revenues 325 618 790 1,733 Operating Expenses: Personal services 48 166 433 647 Commodities 21 193 51 265 Services and charges 241 152 139 532 310 511 623 1,444 Depreciation 431 676 32 1,139 Total operating expenses 741 1,187 655 2,583 Operating income (loss) (416) (569) 135 (850) Nonoperating Revenues (Expenses): Gain on disposal of capital assets 208 - - 208 Interest income 3 10 12 25 Total nonoperating revenues (expenses) 211 10 12 233 Income (loss) before capital contributions and transfers (205) (559) 147 (617) Capital contributions 3,311 541 - 3,852 Transfers in 291 65 - 356 Transfers out (78) (8) (55) (141) . Change in net assets 3,319 39 92 3,450 Net Assets, Beginning 16,960 30,994 1,844 49,798 Net Assets, Ending 20,279 $ 31,033 $ 1,936 $ 53,248 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2010 AND CHANGES IN FUND NET ASSETS 89 Cable Airport Stormwater Television Total Cash Flows From Operating Activities Receipts from customers and users 325 $ 625 $ 787 $ 1,737 $ Payments to suppliers (274) (466) (189) (929) Payments to employees (41) (163) (418) (622) Net cash flows from operating activities 10 (4) 180 186 Cash Flows From Noncapital Financing Activities Operating grants received 5 - - 5 Transfers from other funds 291 65 - 356 Transfers to other funds (78) (8) (55) (141) Advances from other funds 206 - - 206 Net cash flows from noncapital financing activities 424 57 (55) 426 Cash Flows From Capital and Related Financing Activities Capital grants received 3,626 - - 3,626 Acquisition and construction of property and equipment (4,074) (105) (1) (4,180) Proceeds from sale of property 223 - - 223 Net cash flows from capital and related financing activities (225) (105) (1) (331) Cash Flows From Investing Activities Interest on investments 4 17 19 40 Net increase (decrease) in cash and cash equivalents 213 (35) 143 321 Cash and Cash Equivalents, Beginning 89 1,349 1,265 2,703 Cash and Cash Equivalents, Ending 302 $ 1,314 $ 1,408 $ 3,024 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) (416) $ (569) $ 135 $ (850) $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 431 676 32 1,139 Changes in: Receivables: Accounts and unbilled usage - 7 (3) 4 Accounts payable (12) (121) 1 (132) Accrued liabilities - 1 (1) - Other Post Employment Benefits Obligation 7 2 16 25 Total adjustments 426 565 45 1,036 Net cash flows from operating activities 10 $ (4) $ 180 $ 186 $ Noncash Investing, Capital, and Financing Activities: Contributions of capital assets from government and others -$ 541 $ -$ 541 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For the Year Ended June 30, 2010 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 7,197 $ 640 $ 8,476 $ 2,827 $ 19,140 $ Receivables: Accounts and unbilled usage 19 - - 5 24 Interest 10 1 12 4 27 Due from other governments 56 - - 16 72 Inventories 323 - - - 323 Total current assets 7,605 641 8,488 2,852 19,586 Noncurrent assets: Capital assets: Land 45 - - - 45 Buildings 578 - - 253 831 Improvements other than buildings 50 - - - 50 Machinery and equipment 12,446 226 8 1,550 14,230 Infrastructure - - - 1,087 1,087 Accumulated depreciation (8,566) (123) (4) (1,599) (10,292) Total noncurrent assets 4,553 103 4 1,291 5,951 Total assets 12,158 744 8,492 4,143 25,537 Liabilities Current liabilities: Accounts payable 123 3 211 220 557 Accrued liabilities 104 4 2,328 73 2,509 Total current liabilities 227 7 2,539 293 3,066 Noncurrent liabilities: Other Post Employment Benefits Obligation 24 (10) (14) 25 25 Total liabilities 251 (3) 2,525 318 3,091 Net Assets Invested in capital assets, net of related debt 4,553 103 4 1,291 5,951 Unrestricted 7,354 644 5,963 2,534 16,495 Total net assets 11,907 $ 747 $ 5,967 $ 3,825 $ 22,446 $ (amounts expressed in thousands) CITY OF IOWA CITY COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2010 92 Equipment Central Loss Information Maintenance Services Reserve Technology Total Operating Revenues: Charges for services 4,856 $ 318 $ 8,970 $ 1,786 $ 15,930 $ Miscellaneous - - 1 48 49 Total operating revenues 4,856 318 8,971 1,834 15,979 Operating Expenses: Personal services 895 35 162 984 2,076 Commodities 1,855 2 19 257 2,133 Services and charges 467 193 7,823 483 8,966 3,217 230 8,004 1,724 13,175 Depreciation 1,031 27 2 182 1,242 Total operating expenses 4,248 257 8,006 1,906 14,417 Operating income (loss) 608 61 965 (72) 1,562 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 104 1 - 6 111 Interest income 62 6 67 31 166 Total nonoperating revenues (expenses) 166 7 67 37 277 Income (loss) before capital contributions and transfers 774 68 1,032 (35) 1,839 Capital contributions - - - 42 42 Transfers in 144 - - 26 170 Transfers out - - (6) - (6) Change in net assets 918 68 1,026 33 2,045 Net Assets, Beginning 10,989 679 4,941 3,792 20,401 Net Assets, Ending 11,907 $ 747 $ 5,967 $ 3,825 $ 22,446 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended June 30, 2010 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 4,836 $ 318 $ 8,971 $ 1,813 $ 15,938 $ Payments to suppliers (2,365) (213) (7,665) (551) (10,794) Payments to employees (852) (45) 85 (998) (1,810) Net cash flows from operating activities 1,619 60 1,391 264 3,334 Cash Flows From Noncapital Financing Activities Transfers from other funds 144 - - 26 170 Operating transfers to other funds - - (6) - (6) Net cash flows from noncapital financing activities 144 - (6) 26 164 Cash Flows From Capital and Related Financing Activities Acquisition and construction of property and equipment (1,496) (38) - (213) (1,747) Proceeds from sale of property 110 1 - 6 117 Net cash flows from capital and related financing activities (1,386) (37) - (207) (1,630) Cash Flows From Investing Activities Interest on investments 99 9 112 47 267 Net increase in cash and cash equivalents 476 32 1,497 130 2,135 Cash and Cash Equivalents, Beginning 6,721 608 6,979 2,697 17,005 Cash and Cash Equivalents, Ending 7,197 $ 640 $ 8,476 $ 2,827 $ 19,140 $ Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) 608 $ 61 $ 965 $ (72) $ 1,562 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 1,031 27 2 182 1,242 Changes in: Receivables: Accounts and unbilled usage (19) - - (5) (24) Due from other governments (1) - - (16) (17) Inventories 9 - - - 9 Accounts payable (52) (18) 177 189 296 Accrued liabilities 2 1 244 (18) 229 Other Post Employment Benefits Obligation 41 (11) 3 4 37 Total adjustments 1,011 (1) 426 336 1,772 Net cash flows from operating activities 1,619 $ 60 $ 1,391 $ 264 $ 3,334 $ Noncash Investing, Capital, and Financing Activities: Contributions of fixed assets from government and others - $ - $ - $ 42 $ 42 $ (amounts expressed in thousands) CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended June 30, 2010 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, 2009 Increases Decreases June 30, 2010 Project Green Assets Equity in pooled cash and investments 230 $ 60 $ 61 $ 229 $ Interest receivable 2 1 2 1 Total assets 232 $ 61 $ 63 $ 230 $ Liabilities Accounts payable -$ 19 $ - $ 19 $ Due to agency 232 $ 42 $ 63 $ 211 $ Total liabilities 232 $ 61 $ 63 $ 230 $ Library Foundation Assets Equity in pooled cash and investments 4 $ 12 $ 10 $ 6 $ Accounts receivable 6 - 1 5 10 $ 12 $ 11 $ 11 $ Liabilities Accrued liabilities 10 $ 11 $ 10 $ 11 $ Total liabilities 10 $ 11 $ 10 $ 11 $ Total Agency Funds Assets Equity in pooled cash and investments 234 $ 72 $ 71 $ 235 $ Accounts receivable 6 - 1 5 Interest receivable 2 1 2 1 Total assets 242 $ 73 $ 74 $ 241 $ Liabilities Accounts payable -$ 19 $ - $ 19 $ Accrued liabilities 10 11 10 11 Due to agency 232 42 63 211 Total liabilities 242 $ 72 $ 73 $ 241 $ (amounts expressed in thousands) CITY OF IOWA CITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended June 30, 2010 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. 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Go v e r n m e n t a l a c t i v i t i e s I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 7 3 ,4 4 7 $ 6 7 , 0 9 0 $ 8 4 , 7 6 8 $ 9 5 , 2 2 7 $ 1 0 1 , 0 2 7 $ 1 0 4 , 8 3 3 $ 1 0 0 , 7 4 1 $ 1 1 1 , 7 0 3 R e s t r i c t e d 22 , 4 9 9 1 7 , 7 0 5 1 6 , 9 7 3 6 , 8 5 2 8 , 1 8 1 2 3 , 7 4 1 2 6 , 5 8 6 2 5 , 5 8 8 U n r e s t r i c t e d 16 , 9 2 6 1 1 , 7 0 0 3 , 7 9 3 1 0 , 8 2 7 1 1 , 0 4 3 1 , 1 1 9 1 7 , 9 3 8 3 2 , 4 7 8 To t a l g o v e r n m e n t a l a c t i v i t i e s n e t a s s e t s 1 1 2 , 8 7 2 $ 9 6 , 4 9 5 $ 1 0 5 , 5 3 4 $ 1 1 2 , 9 0 6 $ 1 2 0 , 2 5 1 $ 1 2 9 , 6 9 3 $ 1 4 5 , 2 6 5 $ 1 6 9 , 7 6 9 $ Bu s i n e s s - t y p e a c t i v i t i e s I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 1 1, 4 8 7 $ 1 5 0 , 8 1 7 $ 1 5 0 , 7 9 7 $ 1 5 5 , 3 4 6 $ 1 7 2 , 5 1 8 $ 1 5 6 , 0 7 5 $ 1 6 2 , 2 1 1 $ 1 7 2 , 6 0 1 R e s t r i c t e d 24 , 4 2 0 1 4 , 9 3 2 1 5 , 0 3 8 1 5 , 6 8 2 2 3 , 8 9 3 2 1 , 3 2 0 1 9 , 1 5 9 1 7 , 5 8 8 U n r e s t r i c t e d 33 , 3 3 9 3 6 , 2 4 6 4 0 , 7 8 0 4 2 , 9 8 8 3 3 , 6 9 5 6 0 , 2 2 5 6 3 , 8 4 2 6 5 , 7 2 5 To t a l b u s i n e s s - t y p e a c t i v i t e s n e t a s s e t s 1 6 9 , 2 4 6 $ 2 0 1 , 9 9 5 $ 2 0 6 , 6 1 5 $ 2 1 4 , 0 1 6 $ 2 3 0 , 1 0 6 $ 2 3 7 , 6 2 0 $ 2 4 5 , 2 1 2 $ 2 5 5 , 9 1 4 $ Pr i m a r y g o v e r n m e n t I n v e s t e d i n c a p i t a l a s s e t s , n e t o f r e l a t e d d e b t 1 8 4, 9 3 4 $ 2 1 7 , 9 0 7 $ 2 3 5 , 5 6 5 $ 2 5 0 , 5 7 3 $ 2 7 3 , 5 4 5 $ 2 6 0 , 9 0 8 $ 2 6 2 , 9 5 2 $ 2 8 4 , 3 0 4 R e s t r i c t e d 46 , 9 1 9 3 2 , 6 3 7 3 2 , 0 1 1 2 2 , 5 3 4 3 2 , 0 7 4 4 5 , 0 6 1 4 5 , 0 2 5 4 3 , 1 7 6 U n r e s t r i c t e d 50 , 2 6 5 4 7 , 9 4 6 4 4 , 5 7 3 5 3 , 8 1 5 4 4 , 7 3 8 6 1 , 3 4 4 8 2 , 5 0 0 9 8 , 2 0 3 To t a l p r i m a r y g o v e r n m e n t n e t a s s e t s 2 8 2 , 1 1 8 $ 2 9 8 , 4 9 0 $ 3 1 2 , 1 4 9 $ 3 2 6 , 9 2 2 $ 3 5 0 , 3 5 7 $ 3 6 7 , 3 1 3 $ 3 9 0 , 4 7 7 $ 4 2 5 , 6 8 3 $ (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 NE T A S S E T S B Y C O M P O N E N T La s t E i g h t 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 ) 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 Ex p e n s e s G o v e r n m e n t a l a c t i v i t i e s : P u b l i c s a f e t y 13 , 8 4 4 $ 15 , 0 1 5 $ 15 , 2 8 6 $ 16 , 6 9 0 $ 16 , 6 9 4 $ 20 , 5 0 4 $ 20 , 7 3 0 $ 19 , 9 5 5 P u b l i c w o r k s 11 , 5 3 9 10 , 4 2 3 11 , 5 2 1 12 , 7 2 3 13 , 5 6 0 13 , 7 2 7 15 , 1 7 7 16 , 8 0 6 C u l t u r e a n d r e c r e a t i o n 10 , 1 3 1 12 , 0 5 1 11 , 3 4 1 11 , 4 5 8 11 , 9 7 0 13 , 4 6 0 9, 5 7 4 12 , 2 3 8 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 3, 1 3 3 2, 5 8 0 6, 9 6 0 6, 2 6 4 4, 6 8 0 1, 8 5 0 8, 7 2 6 16 , 9 1 3 G e n e r a l g o v e r n m e n t 6, 2 5 1 6, 5 2 7 6, 5 0 0 6, 8 9 2 7, 2 5 8 7, 4 3 3 7, 6 0 0 7, 5 4 9 D e b t s e r v i c e 3, 6 6 2 3, 4 4 0 3, 6 0 2 3, 4 0 4 3, 4 5 9 3, 5 1 7 3, 2 6 4 2, 9 7 0 T o t a l g o v e r n m e n t a l a c t i v i t i e s e xp e n s e s 48 , 5 6 0 50 , 0 3 6 55 , 2 1 0 57 , 4 3 1 57 , 6 2 1 60 , 4 9 1 65 , 0 7 1 76 , 4 3 1 B u s i n e s s - t y p e a c t i v i t i e s : W a s t e w a t e r 12 , 0 8 6 12 , 3 4 4 12 , 2 1 4 11 , 7 1 0 11 , 5 3 7 11 , 7 5 7 11 , 9 2 5 11 , 2 7 4 W a t e r 7, 8 6 1 8, 0 1 1 8, 3 1 3 9, 3 2 4 8, 8 2 3 8, 8 0 4 9, 1 8 5 8, 3 0 9 S a n i t a t i o n 4, 0 8 2 6, 1 0 3 6, 0 3 1 6, 1 0 1 6, 6 8 4 6, 8 6 8 7, 2 9 6 7, 7 0 5 H o u s i n g a u t h o r i t y 6, 5 1 9 7, 2 1 9 7, 4 6 6 7, 0 2 6 6, 8 8 4 7, 3 7 4 7, 2 3 8 7, 8 3 8 P a r k i n g 3, 5 5 4 3, 8 9 8 3, 9 8 9 3, 8 8 4 4, 4 0 3 3, 9 1 3 4, 4 8 9 4, 5 3 6 A i r p o r t 43 1 51 5 52 0 51 2 41 8 56 0 69 3 72 4 S t o r m w a t e r - 65 2 1, 4 5 2 81 7 93 2 1, 0 7 2 1, 2 2 3 1, 1 8 7 C a b l e t e l e v i s i o n 68 7 54 9 60 7 57 6 52 5 59 8 63 3 64 5 T o t a l b u s i n e s s - t y p e a c t i v i t i e s ex p e n s e s 35 , 2 2 0 39 , 2 9 1 40 , 5 9 2 39 , 9 5 0 40 , 2 0 6 40 , 9 4 6 42 , 6 8 2 42 , 2 1 8 T o t a l p r i m a r y g o v e r n m e n t e x p e n s es 83 , 7 8 0 $ 89 , 3 2 7 $ 95 , 8 0 2 $ 97 , 3 8 1 $ 97 , 8 2 7 $ 10 1 , 4 3 7 $ 10 7 , 7 5 3 $ 11 8 , 6 4 9 $ Pr o g r a m R e v e n u e s G o v e r n m e n t a l a c t i v i t i e s : C h a r g e s f o r s e r v i c e s P u b l i c s a f e t y 2, 5 0 7 $ 3, 0 3 8 $ 2, 9 2 8 $ 2, 9 7 1 $ 3, 0 8 8 $ 3, 0 1 9 $ 2, 9 6 8 $ 2, 9 8 0 P u b l i c w o r k s 1, 1 1 8 1, 0 0 6 1, 0 7 6 1, 0 6 2 1, 2 2 9 1, 0 4 7 1, 3 9 2 1, 0 6 1 C u l t u r e a n d r e c r e a t i o n 1, 1 4 5 63 0 65 3 70 7 71 2 68 0 71 5 77 3 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 19 2 - - - - - - G e n e r a l g o v e r n m e n t 1, 4 1 6 1, 4 2 8 1, 4 8 2 1, 5 5 6 1, 5 6 9 1, 6 3 3 1, 6 2 6 2, 5 7 4 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 2, 9 6 5 2, 1 5 0 2, 5 9 2 2, 9 3 7 3, 2 1 5 3, 6 1 1 8, 1 8 5 15 , 5 5 4 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s 2, 2 0 5 6, 1 9 8 7, 6 7 9 3, 8 4 9 4, 2 8 3 1, 7 4 7 3, 7 7 3 8, 2 9 1 T o t a l g o v e r n m e n t a l a c t i v i t i e s p ro g r a m r e v e n u e s 11 , 5 4 8 14 , 4 5 0 16 , 4 1 0 13 , 0 8 2 14 , 0 9 6 11 , 7 3 7 18 , 6 5 9 31 , 2 3 3 B u s i n e s s - t y p e a c t i v i t i e s : C h a r g e s f o r s e r v i c e s : W a s t e w a t e r 12 , 4 4 5 12 , 5 8 0 12 , 1 4 5 12 , 1 4 5 12 , 5 3 5 12 , 3 1 8 12 , 5 5 7 12 , 6 3 7 W a t e r 9, 6 7 7 9, 1 6 4 8, 6 0 2 9, 0 1 2 8, 2 4 0 8, 1 9 5 8, 1 0 7 7, 9 5 7 S a n i t a t i o n 6, 5 3 1 7, 1 1 1 7, 1 5 4 7, 1 3 3 7, 2 0 4 7, 8 5 3 8, 2 8 6 8, 0 9 6 H o u s i n g a u t h o r i t y 22 1 21 9 18 1 16 8 13 2 14 9 18 1 18 0 P a r k i n g 3, 6 3 6 4, 0 1 1 4, 0 4 5 3, 9 3 6 4, 7 0 4 4, 6 7 3 5, 4 3 8 5, 3 7 7 A i r p o r t 18 0 21 3 22 0 26 4 23 4 25 8 24 8 28 9 S t o r m w a t e r - 10 4 59 2 59 7 62 2 61 6 62 2 61 7 C a b l e T e l e v i s i o n 29 8 67 3 70 8 71 8 72 6 81 4 78 8 79 0 (c o n t i n u e d ) (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 La s t E i g h t 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 ) 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : W a s t e w a te r 1, 0 7 7 96 8 76 1 77 3 1, 5 3 9 57 7 26 6 2, 1 1 5 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : W a t e r 64 0 45 2 58 8 60 6 84 5 31 4 13 2 57 2 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S a n i t a t io n - - - 46 - - - 6 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : A i r p o r t - 11 6 28 3 1, 1 2 5 1, 2 3 1 1, 5 8 0 3, 2 3 9 3, 3 1 1 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : S t o r m w a te r - 71 7 75 5 46 8 1, 2 5 1 30 2 68 54 1 C a p i t a l g r a n t s a n d c o n t r i b u t i o n s : H o u s i n g a u t h o r i t y - - - - - 17 - 25 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 ng a u t h o r i t y 6, 2 9 1 6, 9 5 0 7, 0 1 2 7, 4 1 4 7, 1 6 5 6, 2 8 1 6, 6 6 8 7, 7 6 5 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : W a t e r 13 1 - - - - - 1 5 6 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : A i r p o rt 3 6 - - - - - 2 - O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : S a n i t at i o n 2 0 1 9 - 3 6 - 6 0 7 6 O p e r a t i n g g r a n t s a n d c o n t r i b u t i o n s : W a s t e wa t e r - - - - 1 - 1 - T o t a l b u s i n e s s - t y p e a c t i v i t i e s pr o g r a m r e v e n u e s 41 , 3 6 4 43 , 2 8 7 43 , 0 4 6 44 , 4 0 8 46 , 4 3 5 43 , 9 5 5 47 , 2 2 5 50 , 2 9 0 T o t a l p r i m a r y g o v e r n m e n t r e v e n u es 52 , 9 1 2 $ 57 , 7 3 7 $ 59 , 4 5 6 $ 57 , 4 9 0 $ 60 , 5 3 1 $ 55 , 6 9 2 $ 65 , 8 8 4 $ 81 , 5 2 3 $ Ne t ( E x p e n s e ) / R e v e n u e s G o v e r n m e n t a l a c t i v i t i e s (3 7 , 0 1 2 ) $ (3 5 , 5 8 6 ) $ (3 8 , 8 0 0 ) $ (4 4 , 3 4 9 ) $ (4 3 , 5 2 5 ) $ (4 8 , 7 5 4 ) $ (4 6 , 4 1 2 ) $ (4 5 , 1 9 8 ) $ B u s i n e s s - t y p e a c t i v i t i e s 6, 1 4 4 3, 9 9 6 2, 4 5 4 4, 4 5 8 6, 2 2 9 3, 0 0 9 4, 5 4 3 8, 0 7 2 T o t a l p r i m a r y g o v e r n m e n t n e t e x pe n s e (3 0 , 8 6 8 ) $ (3 1 , 5 9 0 ) $ (3 6 , 3 4 6 ) $ (3 9 , 8 9 1 ) $ (3 7 , 2 9 6 ) $ (4 5 , 7 4 5 ) $ (4 1 , 8 6 9 ) $ (3 7 , 1 2 6 ) $ Ge n e r a l R e v e n u e s a n d O t h e r C h a n g e s i n N e t A s s e t s G o v e r n m e n t a l a c t i v i t i e s : G e n e r a l r e v e n u e s : P r o p e r t y t a x e s 32 , 2 5 7 $ 34 , 1 7 3 $ 35 , 3 2 7 $ 37 , 7 7 0 $ 41 , 4 9 2 $ 43 , 4 0 0 $ 47 , 0 8 5 $ 49 , 4 6 7 $ R o a d u s e t a x 5, 1 4 4 5, 3 1 1 5, 2 6 9 5, 3 0 3 5, 3 0 5 5, 4 3 2 5, 2 5 4 5, 5 2 5 L o c a l S a l e s O p t i o n t a x 8, 1 4 1 O t h e r t a x e s 1, 3 9 9 1, 6 0 9 1, 3 5 1 1, 2 4 0 1, 4 1 2 1, 4 3 5 1, 4 8 9 1, 5 3 5 E a r n i n g s o n i n v e s t m e n t s 1, 2 0 7 1, 0 5 6 1, 5 7 6 2, 6 7 8 4, 0 4 5 3, 9 3 2 3, 0 5 7 1, 7 6 6 M i s c e l l a n e o u s 3, 1 7 4 3, 7 4 6 3, 9 9 4 4, 4 2 2 3, 6 5 6 3, 5 1 6 4, 8 9 4 3, 8 9 3 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 (6 2 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 69 , 7 0 2 Bu s i n e s s - t y p e a c t i v i t i e s : G e n e r a l r e v e n u e s : E a r n i n g s o n i n v e s t m e n t s 1, 3 0 5 99 1 1, 7 7 1 2, 5 7 5 3, 6 0 6 3, 2 7 9 2, 5 7 7 1, 3 1 1 G a i n o n s a l e o f a s s e t s 31 5 1, 0 0 9 30 4 18 5 59 1 1, 2 6 0 36 0 23 0 M i s c e l l a n e o u s 99 4 33 5 41 8 39 1 34 3 45 4 31 7 46 4 T r a n s f e r s (1 , 4 4 4 ) 1, 8 4 0 (6 4 5 ) (2 0 8 ) 5, 3 2 1 (4 8 8 ) (2 0 5 ) 62 5 T o t a l b u s i n e s s - t y p e a c t i v i t i e s 1, 1 7 0 4, 1 7 5 1, 8 4 8 2, 9 4 3 9, 8 6 1 4, 5 0 5 3, 0 4 9 2, 6 3 0 T o t a l p r i m a r y g o v e r n m e n t 44 , 0 6 9 $ 48 , 2 9 5 $ 50 , 1 0 5 $ 54 , 6 6 4 $ 60 , 7 3 1 $ 62 , 7 0 1 $ 65 , 0 3 3 $ 72 , 3 3 2 $ Ch a n g e i n N e t A s s e t s G o v e r n m e n t a l a c t i v i t e s 5, 8 8 7 $ 8, 5 3 4 $ 9, 4 5 7 $ 7, 3 7 2 $ 7, 3 4 5 $ 9, 4 4 2 $ 15 , 5 7 2 $ 24 , 5 0 4 $ B u s i n e s s - t y p e a c t i v i t e s 7, 3 1 4 8, 1 7 1 4, 3 0 2 7, 4 0 1 16 , 0 9 0 7, 5 1 4 7, 5 9 2 10 , 7 0 2 T o t a l p r i m a r y g o v e r n m e n t 13 , 2 0 1 $ 16 , 7 0 5 $ 13 , 7 5 9 $ 14 , 7 7 3 $ 23 , 4 3 5 $ 16 , 9 5 6 $ 23 , 1 6 4 $ 35 , 2 0 6 $ 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 E i g h t 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 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 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 $ 4 0 6 $ U n r e s e r v e d 13 , 0 1 2 1 4 , 3 0 1 1 5 , 5 2 5 1 6 , 5 5 1 1 8 , 5 2 8 1 4 , 4 8 8 1 5 , 3 6 2 2 6 , 1 0 1 To t a l g e n e r a l f u n d 14 , 1 0 6 $ 1 4 , 6 9 7 $ 1 5 , 8 8 7 $ 1 7 , 1 2 1 $ 1 9 , 0 9 6 $ 1 4 , 9 3 4 $ 1 5 , 9 1 7 $ 2 6 , 5 0 7 $ 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 $ 3 , 9 0 3 $ D e s i g n a t e d f o r l o n g - t e r m d e b t 4 , 4 4 8 6 , 9 3 0 3 , 0 6 7 2 , 7 2 5 4 , 2 8 9 8 , 6 9 1 1 1 , 7 5 9 1 3 , 9 5 2 U n r e s e r v e d , r e p o r t e d i n : S p e c i a l r e v e n u e f u n d s 3 , 8 1 9 9 , 3 7 9 6 , 2 2 2 3 , 4 2 2 3 , 3 6 6 2 , 5 7 1 ( 1 , 8 5 2 ) ( 1 , 6 7 4 ) C a p t a l p r o j e c t s f u n d s 1 , 0 4 7 3 , 8 8 2 6 , 1 4 3 7 , 0 9 3 7 , 8 9 4 1 1 , 1 1 8 1 0 , 9 6 0 8 , 0 4 3 To t a l a l l o t h e r g o v e r n m e n t a l f u n d s 2 0 , 8 5 0 $ 2 1 , 8 6 8 $ 1 7 , 6 3 0 $ 1 4 , 8 3 2 $ 1 7 , 5 3 3 $ 2 5 , 4 8 7 $ 2 6 , 2 0 6 $ 2 4 , 2 2 4 $ (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Y e a r CI T Y O F I O W A C I T Y , I O W A FU N D B A L A N C E S , G O V E R N M E N T A L F U N D S La s t E i g h t 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 ) 20 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Re v e n u e s : P r o p e r t y t a x e s a n d a s s e s s m e n t s 3 1 , 9 6 6 $ 3 5 , 5 3 8 $ 3 6 , 6 7 7 $ 3 9 , 0 1 1 $ 4 2 , 9 0 5 $ 4 4 , 8 3 5 $ 4 8 , 5 7 2 $ 5 9 , 1 4 3 $ L i c e n s e s a n d p e r m i t s 96 1 1 , 3 6 1 1 , 2 5 5 1 , 2 7 9 1 , 4 0 4 1 , 2 7 0 1 , 2 8 4 1 , 2 1 1 I n t e r g o v e r n m e n t a l 12 , 1 9 3 1 2 , 0 5 8 1 5 , 5 4 6 1 4 , 2 6 0 1 3 , 4 5 5 1 2 , 7 6 4 1 9 , 5 2 1 3 1 , 4 0 4 C h a r g e s f o r s e r v i c e s 4, 6 7 4 3 , 2 4 0 3 , 3 0 1 2 , 2 2 7 2 , 4 2 3 2 , 2 2 8 2 , 4 9 8 2 , 4 3 3 U s e o f m o n e y a n d p r o p e r t y 9 9 7 1 , 0 0 2 1 , 3 5 4 2 , 2 0 3 3 , 3 7 8 3 , 2 0 6 2 , 6 4 5 1 , 5 9 9 M i s c e l l a n e o u s 2, 5 5 8 4 , 3 7 7 4 , 1 2 1 4 , 1 7 6 3 , 8 5 8 3 , 9 7 7 5 , 3 0 2 4 , 7 8 4 T o t a l g o v e r n m e n t a l a c t i v i t i e s r e v e n u e s 5 3 , 3 4 9 $ 5 7 , 5 7 6 $ 6 2 , 2 5 4 $ 6 3 , 1 5 6 $ 6 7 , 4 2 3 $ 6 8 , 2 8 0 $ 7 9 , 8 2 2 $ 1 0 0 , 5 7 4 $ Ex p e n d i t u r e s C u r r e n t P u b l i c s a f e t y 13 , 1 1 5 $ 1 4 , 0 2 5 $ 1 4 , 6 0 1 $ 1 5 , 8 1 9 $ 1 6 , 4 1 2 $ 1 8 , 7 0 5 $ 1 8 , 7 5 2 $ 1 9 , 1 0 8 $ P u b l i c w o r k s 8, 1 4 9 9 , 1 5 6 9 , 6 9 8 1 0 , 3 5 1 1 2 , 4 5 2 1 2 , 1 0 8 1 2 , 4 0 5 1 3 , 3 1 1 C u l t u r e a n d r e c r e a t i o n 8, 0 6 1 9 , 3 9 2 9 , 1 8 3 1 0 , 1 2 2 1 0 , 2 6 1 1 0 , 7 0 3 1 0 , 8 4 9 1 1 , 2 6 6 C o m m u n i t y a n d e c o n o m i c d e v e l o p m e n t 3 , 7 1 5 3 , 4 8 6 6 , 3 7 5 4 , 6 9 8 3 , 4 4 5 4 , 4 3 7 8 , 0 3 7 1 0 , 5 2 0 G e n e r a l g o v e r n m e n t 5, 8 8 7 6 , 0 8 0 6 , 2 8 2 6 , 5 1 0 7 , 1 9 4 7 , 2 0 7 7 , 3 0 0 7 , 1 9 1 D e b t s e r v i c e P r i n c i p a l 4, 7 4 2 5 , 1 7 2 9 , 3 4 9 6 , 0 9 9 6 , 7 0 0 7 , 3 2 3 8 , 4 1 8 9 , 3 5 4 I n t e r e s t 3, 6 8 3 3 , 3 3 6 3 , 6 7 6 3 , 4 5 8 3 , 4 6 4 3 , 5 5 6 3 , 3 6 4 3 , 0 6 4 C a p i t a l p r o j e c t s 20 , 0 9 5 1 6 , 0 6 5 1 3 , 9 3 9 1 5 , 1 5 3 1 3 , 0 0 0 1 1 , 8 1 1 1 7 , 0 9 6 1 7 , 6 9 0 T o t a l e x p e n d i t u r e s 6 7 , 4 4 7 $ 6 6 , 7 1 2 $ 7 3 , 1 0 3 $ 7 2 , 2 1 0 $ 7 2 , 9 2 8 $ 7 5 , 8 5 0 $ 8 6 , 2 2 1 $ 9 1 , 5 0 4 $ E x c e s s ( d e f i c i e n c y ) o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s ( 1 4 , 0 9 8 ) $ ( 9 , 1 3 6 ) $ ( 1 0 , 8 4 9 ) $ ( 9 , 0 5 4 ) $ ( 5 , 5 0 5 ) $ ( 7 , 5 7 0 ) $ ( 6 , 3 9 9 ) $ 9 , 0 7 0 $ Ot h e r f i n a n c i n g s o u r c e s ( u s e s ) : I s s u a n c e o f l o n g - t e r m d e b t 1 0 , 6 0 0 $ 1 2 , 8 7 5 $ 7 , 0 2 0 $ 7 , 2 6 5 $ 8 , 8 7 0 $ 9 , 1 5 0 $ 3 0 , 0 3 5 $ - $ S a l e o f c a p i t a l a s s e t s - 3 8 4 4 0 6 1 0 9 4 7 0 1 1 1 5 5 4 2 2 2 I n s u r a n c e R e c o v e r i e s - - - - - - - 2 0 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 1 6 , 7 4 2 T r a n s f e r s o u t (1 4 , 5 5 4 ) ( 1 6 , 7 3 3 ) ( 1 5 , 2 3 7 ) ( 2 1 , 5 4 0 ) ( 2 0 , 7 1 1 ) ( 2 3 , 3 2 8 ) ( 1 6 , 3 8 6 ) ( 1 7 , 4 4 6 ) T o t a l o t h e r f i n a n c i n g s o u r c e s ( u s e s ) 4 , 89 6 $ 1 1 , 1 2 1 $ 8 , 2 1 9 $ 7 , 4 9 0 $ 1 0 , 1 8 1 $ 1 1 , 3 6 2 $ 8 , 1 0 1 $ ( 4 6 2 ) $ N e t c h a n g e i n f u n d b a l a n c e s ( 9 , 2 0 2 ) $ 1 , 9 8 5 $ ( 2 , 6 3 0 ) $ ( 1 , 5 6 4 ) $ 4 , 6 7 6 $ 3 , 7 9 2 $ 1 , 7 0 2 $ 8 , 6 0 8 $ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 17 . 0 % 1 6 . 3 % 2 1 . 5 % 1 6 . 6 % 1 7 . 0 % 1 6 . 6 % 1 7 . 0 % 1 6 . 8 % 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 E i g h t 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 ) CI T Y O F I O W A C I T Y , I O W A GE N E R A L G O V E R N M E N T T A X R E V E N U E S B Y S O U R C E La s t T e n F i s c a l Y e a r s (M o d i f i e d a c c r u a l b a s i s o f a c c o u n t i n g ) (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Lo c a l O p t i o n U t i l i t y Ye a r Pr o p e r t y T a x Ro a d U s e T a x Ho t e l / M o t e l T a x Sa l e s T a x 1 Fr a n c h i s e F e e 2 To t a l 20 0 1 2 7 , 0 7 1 $ 4 , 8 5 2 $ 4 9 7 $ - $ - $ 3 2 , 4 2 0 $ 20 0 2 2 8 , 6 2 3 5 , 0 7 7 6 4 6 - - 3 4 , 3 4 6 20 0 3 3 1 , 9 6 6 5 , 1 0 3 5 5 9 - - 3 7 , 6 2 8 20 0 4 3 4 , 9 5 8 5 , 3 1 1 5 8 0 - - 4 0 , 8 4 9 20 0 5 3 6 , 0 7 6 5 , 2 6 9 6 1 1 - - 4 1 , 9 5 6 20 0 6 3 8 , 3 3 6 5 , 3 0 3 6 7 4 - - 4 4 , 3 1 3 20 0 7 4 2 , 2 2 1 5 , 3 0 5 6 8 3 - - 4 8 , 2 0 9 20 0 8 4 4 , 1 0 1 5 , 4 3 2 7 3 4 - - 5 0 , 2 6 7 20 0 9 4 7 , 8 6 1 5 , 2 5 4 7 1 3 - - 5 3 , 8 2 8 20 1 0 5 0 , 2 5 6 5 , 5 2 5 6 9 9 8 , 1 4 1 4 7 6 4 , 6 6 8 1 1 % L o c a l O p t i o n S a l e s T a x w e n t i n t o e f f e c t 7 / 1 / 0 9 an d w i l l b e e f f e c t i v e t h r o u g h 6 / 3 0 / 1 3 . 2 1 % U t i l i t y F r a n c h i s e F e e w e n t i n t o e f f e c t 4 / 1 / 1 0 . CI T Y O F I O W A C I T Y , I O W A AS S E S S E D A N D T A X A B L E V A L U E O F P R O P E R T Y La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fi s c a l Ex e m p t To t a l T a x a b l e V a l u e T o t a l Ye a r E n d e d Pr o p e r t y T o t a l T a x a b l e a s a P e r c e n t a g e D i r e c t Ju n e 3 0 Re s i d e n t i a l Co m m e r c i a l Ag r i c u l t u r a l As s e s s e d V a l u e 2 As s e s s e d V a l u e Va l u e 3 of A s s e s s e d V a l u e Ta x R a t e 20 0 1 1, 9 3 2 , 8 2 2 $ 97 4 , 5 1 9 $ 2, 3 0 3 $ 15 6 , 7 4 1 $ 3, 0 6 6 , 3 8 6 $ 1, 9 5 0 , 2 7 9 $ 63 . 6 0 % 14 . 7 5 7 20 0 2 1, 9 8 5 , 6 8 6 97 4 , 5 9 2 2, 2 2 7 15 9 , 1 0 9 3, 1 2 1 , 6 1 4 1, 9 9 1 , 2 8 3 63 . 7 9 14 . 8 5 0 20 0 3 2, 1 5 4 , 8 0 1 1, 0 3 8 , 4 0 2 1, 9 6 8 17 9 , 8 1 6 3, 3 7 4 , 9 8 7 2, 0 7 2 , 9 2 3 61 . 4 2 16 . 8 1 3 20 0 4 2, 2 3 6 , 6 1 0 1, 0 5 7 , 5 7 3 1, 8 0 2 18 4 , 6 7 0 3, 4 8 0 , 6 5 6 2, 1 2 2 , 7 7 9 60 . 9 9 17 . 5 9 6 20 0 5 2, 6 4 7 , 3 4 5 1, 1 6 6 , 4 5 5 1, 5 8 2 20 8 , 1 9 9 4, 0 2 3 , 5 8 0 2, 3 6 2 , 9 3 6 58 . 7 3 17 . 3 1 4 20 0 6 2, 7 3 3 , 0 4 6 1, 1 9 7 , 2 0 3 1, 5 3 4 21 5 , 6 2 7 4, 1 4 7 , 4 1 1 2, 4 2 6 , 4 3 3 58 . 5 0 17 . 7 2 9 20 0 7 3, 0 1 1 , 8 0 3 1, 2 5 3 , 6 4 1 1, 5 6 5 21 9 , 3 5 1 4, 4 8 6 , 3 6 0 2, 5 6 5 , 3 6 0 57 . 1 8 17 . 3 0 2 20 0 8 3, 0 8 9 , 8 1 6 1, 2 8 8 , 1 5 9 1, 4 9 9 22 1 , 2 2 9 4, 6 0 0 , 7 0 3 2, 6 7 7 , 5 5 2 58 . 2 0 17 . 2 9 7 20 0 9 3, 1 2 3 , 3 9 8 1, 3 2 7 , 3 8 5 2, 3 1 5 21 9 , 7 0 6 4, 6 7 2 , 8 0 4 2, 7 5 6 , 4 5 1 58 . 9 9 17 . 7 1 7 20 1 0 3, 1 8 3 , 9 3 3 1, 3 4 3 , 0 2 9 2, 3 1 7 22 8 , 7 8 3 4, 7 5 8 , 0 6 2 2, 8 0 7 , 3 0 7 59 . 0 0 17 . 8 5 3 So u r c e s : 1 Jo h n s o n C o u n t y A b s t r a c t A s s e s s m e n t 2 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 - A n n u a l R e p o r t 3 Jo h n s o n C o u n t y A u d i t o r O f f i c e No t e s : Pr o p e r t y i s r e a s s e s s e d i n t h e o d d n u m b e r e d y e a r s t o m a k e a d j u s t m e n t s t o a l l p r o p e r t y v a l u e s , a c c o r d i n g t o c u r r e n t m a r k e t v a l u e s . A s p e r t h e C o d e o f I o w a , a l l r e a l p r o p e r t y s u b j e c t t o t a x a t i o n sh a l l b e v a l u e d a t i t s a c t u a l v a l u e a n d , e x c e p t a s ot h e r w i s e p r o v i d e d , s h a l l b e r e a s s e s s e d a t 1 0 0 % o f it s a c t u a l v a l u e . Ex e m p t p r o p e r t y i n c l u d e s a l l p r o p e r t y t h a t i s o w n e d b y r e l i g i o u s a n d e d u c a t i o n a l i n s t i t u t i o n s , c h a r i t a bl e a n d b e n e v o l e n t t a x a b l e p r o p e r t y . P r o p e r t y o w n e d b y g o v e r n m e n t a l e n t i t i e s is n o t t a x a b l e a n d i s n o t i n c l u d e d i n “ E x e m p t P r o p e rt y " . Ta x r a t e s a r e p e r $ 1 , 0 0 0 o f a s s e s s e d v a l u e . T a x a b l e P r o p e r t y A s s e s s e d V a l u e 1 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 Co m m u n i t y S t a t e o f O v e r l a p p i n g Ye a r Mi l l a g e Mi l l a g e Mi l l a g e Co u n t y 1 Di s t r i c t Co l l e g e Io w a Ra t e s 20 0 1 1 1 . 7 6 7 2 . 9 9 0 1 4 . 7 5 7 5 . 9 0 1 1 1 . 8 3 3 0 . 6 0 7 0 . 0 0 5 3 3 . 1 0 4 20 0 2 1 1 . 9 0 5 2 . 9 4 5 1 4 . 8 5 0 5 . 8 0 2 1 1 . 5 4 0 0 . 6 0 7 0 . 0 0 5 3 2 . 8 0 3 20 0 3 1 2 . 6 5 2 4 . 1 6 1 1 6 . 8 1 3 6 . 0 6 1 1 2 . 2 1 0 0 . 6 6 6 0 . 0 0 4 3 5 . 7 5 4 20 0 4 1 3 . 0 2 6 4 . 5 7 0 1 7 . 5 9 6 6 . 1 0 2 1 2 . 8 6 5 0 . 6 7 9 0 . 0 0 4 3 7 . 2 4 7 20 0 5 1 3 . 3 6 0 3 . 9 5 4 1 7 . 3 1 4 6 . 1 6 6 1 2 . 8 7 5 0 . 6 6 8 0 . 0 0 4 3 7 . 0 2 7 20 0 6 1 3 . 5 8 0 4 . 1 4 9 1 7 . 7 2 9 6 . 3 9 1 1 3 . 5 8 2 0 . 6 4 9 0 . 0 0 4 3 8 . 3 5 5 20 0 7 1 3 . 4 2 3 3 . 8 7 9 1 7 . 3 0 2 6 . 4 1 5 1 3 . 6 3 2 0 . 8 7 2 0 . 0 0 4 3 8 . 2 2 5 20 0 8 1 3 . 5 1 1 3 . 7 8 6 1 7 . 2 9 7 7 . 8 0 3 1 4 . 1 9 2 0 . 8 5 2 0 . 0 0 4 4 0 . 1 4 8 20 0 9 1 4 . 0 8 0 3 . 6 3 7 1 7 . 7 1 7 7 . 7 0 8 1 4 . 1 9 1 0 . 8 4 0 0 . 0 0 3 4 0 . 4 5 9 20 1 0 1 4 . 2 1 6 3 . 6 3 7 1 7 . 8 5 3 7 . 5 4 0 1 4 . 6 9 0 0 . 9 2 6 0 . 0 0 3 4 1 . 0 1 2 So u r c e : " T a x L e v i e s f o r J o h n s o n C o u n t y , I o w a , " c o m p i l e d b y t h e J o h n s o n C o u n t y A u d i t o r . No t e : 1 In c l u d e s J o h n s o n C o u n t y , C i t y o f I o w a C i t y A s s e s s o r , a n d A g r i c u l t u r a l E x t e n s i o n l e v i e s . Ov e r l a p p i n g R a t e s Ci t y o f I o w a C i t y Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections Collections 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 2010 45,393 45,318 99.8 17 45,335 99.9 Source: Certificate of City Taxes and Johnson County Treasurer's Office CITY OF IOWA CITY, IOWA PROPERTY TAX BUDGETS AND COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Percent of Levy Collected Total as a Percent of Levy 20 0 1 2 0 1 0 % o f T o t a l % o f T o t a l Ta x a b l e A s s e s s e d T a x a b l e A s s e s s e d Te n l a r g e s t t a x p a y e r s 1 Ty p e o f B u s i n e s s Va l u a t i o n Ra n k Va l u a t i o n Va l u a t i o n Ra n k Va l u a t i o n AC T I n c . ( f o r m e r l y A m e r i c a n C o l l e g e T e s t i n g P r o g r a m ) E d u c a t i o n a l T e s t i n g S e r v i c e 1 8 , 7 9 1 $ 4 0 . 7 2 % 45 , 5 5 3 $ 1 1 . 4 3 % 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 7 7 1 1 . 7 4 4 0 , 2 4 2 2 1 . 2 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 9 , 0 0 3 3 0 . 6 0 So u t h g a t e D e v e l o p m e n t C o m p a n y R e a l E s t a t e D e v e l o p e r 1 6, 3 3 5 5 0 . 6 3 1 8 , 5 3 2 4 0 . 5 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 6 , 4 1 1 5 0 . 5 2 Al p h a I n c In d u s t r i a l - - N / A 1 5 , 4 2 6 6 0 . 4 8 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 ce - - N / A 1 4 , 5 7 5 7 0 . 4 6 NC S P e a r s o n I n f o r m a t i o n S e r v i c e s 1 5 , 7 5 9 6 0 . 6 1 1 4 , 3 1 7 8 0 . 4 5 Pr o c t o r & G a m b l e L L C M a n u f a c t u r i n g C o m p a n y 1 9 , 9 1 5 3 0 . 7 7 1 3 , 7 5 2 9 0 . 4 3 Un i t e d N a t u r a l F o o d s W h o l e s a l e D i s t r i b u t i o n C o m p a n y - - N / A 1 3 , 0 9 5 1 0 0 . 4 1 Ja m e A a n d L o r r e t t a C l a r k A p a r t m e n t s 25 , 6 6 7 2 0 . 9 9 - - N / A Ol d C a p i t o l M a l l A s s o c i a t e s L P O l d C a p i t o l M a l l T o w n C e n t e r 1 3 , 4 9 7 7 0 . 5 2 - - N / A Hy - V e e Gr o c e r y S t o r e s 13 , 3 2 2 8 0 . 5 1 - - N / A Re x a m R e l e a s e I n t e r n a t i o n a l P a p e r T r e a t m e n t M a n u f a c t ur i n g 1 2 , 8 9 2 9 0 . 5 0 - - N / A Ed w i n & E t h e l B a r k e r & B a r k e r P a r t n e r s h i p A p a r t m e n t s 12 , 1 9 2 1 0 0 . 4 7 - - N / A To t a l 19 3 , 6 4 7 $ 7. 4 6 % 21 0 , 9 0 6 $ 6. 6 2 % 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 9 A n n u a l R ep o r t 2 St a t e D e p a r t m e n t o f R e v e n u e CI T Y O F I O W A C I T Y , I O W A PR I N C I P A L T A X P A Y E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) 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 52 6 , 8 8 5 $ 1 5 . 5 6 % 5 9 9 , 2 7 2 $ 1 7 . 9 2 % 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 2 6 4 , 9 5 6 2 2 . 8 0 7 2 , 6 7 1 2 0 . 9 6 Ca m p u s A p a r t m e n t s 91 , 2 2 5 5 0 . 9 6 6 9 , 2 0 6 3 0 . 9 1 Me r c y H o s p i t a l 10 7 , 1 6 0 4 1 . 1 3 6 8 , 1 7 7 4 0 . 9 0 Ro b e r t ' s H o m e t o w n D a i r y 62 , 1 7 9 7 0 . 6 6 5 9 , 0 5 5 5 0 . 7 8 Ma r k I V A p t s 60 , 3 6 3 8 0 . 6 4 5 5 , 6 7 2 6 0 . 7 4 Ru s P r o p e r t y M a n a g e m e n t / L a k e s i d e M a n o r 1 1 0 , 1 5 0 3 0 . 7 5 5 0 , 6 9 6 7 0 . 6 7 Pe n n i g r o t h A p t s - - N / A 4 9 , 4 3 1 8 0 . 6 5 Un i v e r s i t y o f I o w a / M a y f l o w e r A p a r t m e n t s 6 0 , 1 6 9 9 0 . 6 4 4 3 , 2 4 6 9 0 . 5 7 Se v i l l e A p t s 33 , 4 4 2 1 0 0 . 4 4 Un i t e d T e c h n o l o g y A u t o m o t i v e 7 1 , 0 6 6 6 0 . 7 5 - - N / A Ho l i d a y I n n / M P I L e a s e 50 , 9 2 5 1 0 0 . 5 4 - - N / A 1, 4 0 5 , 0 7 8 $ 14 . 4 3 % 1, 1 0 0 , 8 6 8 $ 14 . 5 5 % To t a l W a t e r S y s t e m C h a r g e s 9 , 0 4 9 , 7 0 0 $ 7, 5 6 8 , 3 7 8 $ So u r c e s : Ci t y o f I o w a C i t y R e v e n u e D e p a r t m e n t No v e m b e r 2 0 0 2 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 i a l S t a t e m e n t No t e s : 1 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 n o t a v a i l a b l e f o r 20 0 1 , s o u s e d i n f o r m a t i o n f r o m 2 0 0 2 t o b e a b l e t o p ro v i d e c o m p a r a t i v e i n f o r m a t i o n . 20 1 0 20 0 2 1 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 E i g h t Y e a r s A g o Fiscal Water Sales Water System Year Cubic Feet Sold Charges 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 2010 234,342,825 7,568,378 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years 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, 0 6 1 , 4 7 9 $ 1 1 8 . 5 5 % 2, 0 1 0 , 2 3 9 $ 1 1 6 . 0 3 % Pr o c t o r & G a m b l e 83 6 , 4 0 3 2 7 . 5 3 1 , 1 9 5 , 0 8 4 2 9 . 5 3 Ro b e r t ' s D a i r y 11 2 , 0 7 4 4 1 . 0 1 1 9 9 , 9 6 8 3 1 . 5 9 Me r c y H o s p i t a l 94 , 0 3 0 6 0 . 8 5 1 1 7 , 5 7 1 4 0 . 9 4 Io w a C i t y L a n d f i l l D i v i s i o n - - N / A 1 0 2 , 0 8 3 5 0 . 8 1 Ca m p u s A p a r t m e n t s 89 , 0 2 7 7 0 . 8 0 9 6 , 6 1 3 6 0 . 7 7 Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r 2 8 0 , 2 2 2 3 2 . 5 2 9 6 , 0 8 2 7 0 . 7 7 Pe n n i g r o t h A p t s - - N A 8 8 , 2 8 9 8 0 . 7 0 Do l p h i n L a k e P o i n t ( L a k e s i d e A p t s ) 1 0 5 , 8 2 2 5 0 . 9 5 8 3 , 0 8 2 9 0 . 6 6 Ma r k I V A p a r t m e n t s 59 , 3 2 1 10 0. 5 3 7 8 , 3 3 8 10 0. 6 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 8 4 , 9 3 3 8 0 . 7 6 - - N / A Un i t e d T e c h A u t o 79 , 0 0 4 9 0 . 7 1 - - N / A 3, 8 0 2 , 3 1 5 $ 34 . 2 1 % 4, 0 6 7 , 3 4 9 $ 32 . 4 3 % To t a l S e w e r S y s t e m C h a r g e s 1 1 , 1 1 1 , 3 1 3 $ 12 , 5 4 1 , 9 0 5 $ So u r c e s : Ci t y o f I o w a C i t y R e v e n u e D e p a r t m e n t Ap r i l 2 0 0 2 S e w e r R e v e n u e B o n d T r a n s c r i p t O f f i c i a l S ta t e m e n t CI T Y O F I O W A C I T Y , I O W A PR I N C I P A L S E W E R S Y S T E M C U S T O M E R S Cu r r e n t Y e a r a n d N i n e Y e a r s A g o 20 1 0 20 0 1 Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 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 2010 265,375,857 12,541,905 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Ge n e r a l C a p i t a l G e n e r a l T o t a l P e r c e n t a g e Fi s c a l O b l i g a t i o n L o a n O b l i g a t i o n R e v e n u e P r i m a r y o f P e r s on a l P e r Ye a r Bo n d s 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 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 2 % 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 0 % 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 0 % 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 . 4 9 % 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 . 1 8 % 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 . 7 8 % 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 . 4 3 % 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 0 % 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 9 % 2 , 5 0 4 20 1 0 7 1 , 2 9 9 , 6 2 2 2 1 1 , 0 0 0 3 , 7 5 0 , 3 7 8 7 8 , 3 3 5 , 0 0 0 1 5 3 , 5 9 6 , 0 0 0 2 . 5 4 % 2 , 2 2 3 No t e s : De t a i l s r e g a r d i n g t h e c i t y ' s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e n o t e s t o t h e f i n a n c i a l s t a t e m e n t s . 1 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 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 on B o n d e d D e b t t o D e b t Ye a r Va l u e 2 Bo n d e d D e b t Pr o p r i e t a r y Fu n d B a l a n c e Bo n d e d D e b t As s e s s e d V a l u e Pe r C a p i t a 3 20 0 1 2 , 9 0 9 , 6 4 4 $ 6 1 , 5 6 5 $ 1 4 , 8 6 8 $ 4 9 4 $ 4 6 , 2 0 3 $ 1 5 . 8 8 : 1 0 0 0 7 4 3 $ 20 0 2 2 , 9 6 2 , 5 0 5 8 5 , 2 6 0 1 3 , 0 6 1 4 6 4 7 1 , 7 3 5 2 4 . 2 1 : 1 0 0 0 1 , 1 5 3 20 0 3 3 , 1 9 5 , 1 7 1 8 3 , 0 0 0 1 1 , 3 5 9 4 , 4 4 8 6 7 , 1 9 3 2 1 . 0 3 : 1 0 0 0 1 , 0 7 7 20 0 4 3 , 2 9 5 , 9 8 6 8 8 , 9 8 5 9 , 6 4 0 6 , 9 3 0 7 2 , 4 1 5 2 2 . 3 6 : 1 0 0 0 1 , 1 6 1 20 0 5 3 , 8 1 5 , 3 8 1 8 5 , 2 9 0 8 , 2 7 5 3 , 0 6 7 7 3 , 9 4 8 1 9 . 3 8 : 1 0 0 0 1 , 1 8 5 20 0 6 3 , 9 3 1 , 7 8 4 8 5 , 0 6 0 6 , 8 7 9 2 , 7 2 5 7 5 , 4 5 6 1 9 . 1 9 : 1 0 0 0 1 , 2 0 0 20 0 7 4 , 2 6 7 , 0 0 9 8 5 , 8 4 0 5 , 4 8 9 4 , 2 8 9 7 6 , 0 6 2 1 7 . 8 3 : 1 0 0 0 1 , 1 3 4 20 0 8 4 , 3 7 9 , 4 7 5 8 7 , 0 9 0 4 , 9 1 3 8 , 6 9 1 7 3 , 4 8 6 1 6 . 7 8 : 1 0 0 0 1 , 0 8 3 20 0 9 4 , 4 5 3 , 0 9 9 8 4 , 9 9 5 4 , 3 4 1 1 1 , 7 5 9 6 8 , 8 9 5 1 5 . 4 7 : 1 0 0 0 9 9 7 20 1 0 4 , 5 2 9 , 2 7 9 7 5 , 0 5 0 3 , 7 5 0 1 3 , 9 5 2 5 7 , 3 4 8 1 2 . 6 6 : 1 0 0 0 8 3 0 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 ce . 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 . 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 2001 3,541 $ 1,763 $ 5,304 $ 53,898 $ .10 : 1.00 2002 3,599 2,136 5,735 53,462 .11 : 1.00 2003 2 4,742 3,683 8,425 82,001 .10 : 1.00 2004 5,172 3,336 8,508 83,445 .10 : 1.00 2005 9,349 3,676 13,025 88,342 .15 : 1.00 2006 6,099 3,458 9,557 93,360 .10 : 1.00 2007 6,700 3,464 10,164 93,639 .11 : 1.00 2008 7,323 3,556 10,879 99,178 .11 : 1.00 2009 8,418 3,364 11,782 102,607 .11 : 1.00 2010 9,354 3,064 12,418 108,950 .11 : 1.00 Notes: 1 General Fund, Special Revenue Funds and Debt Service Fund. 2 Beginning in FY03, Capital Projects Funds are also included. CITY OF IOWA CITY, IOWA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2010 (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 75,050 $ 100.00% 75,050 $ 1,086 $ Iowa City Community School District 24,160 59.36% 14,341 208 Total 99,210 $ 89,391 $ 1,294 $ Per capita assessed value 64,565 $ 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. 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 De b t L i m i t 1 2 9 , 8 9 1 $ 1 3 4 , 9 9 7 $ 1 4 5 , 4 8 2 $ 1 4 8 , 1 2 5 $ 1 5 9 , 7 5 9 $ 1 6 4 , 7 9 9 $ 1 9 0 , 7 6 9 $ 1 9 6 , 5 8 9 $ 2 1 3 , 3 5 0 $ 2 1 8 , 9 7 4 $ 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 6 1 , 5 6 5 8 5 , 2 6 0 8 3 , 0 0 0 8 8 , 9 8 5 8 5 , 2 9 0 8 5 , 0 6 0 8 5 , 8 4 0 8 7 , 0 9 0 8 4 , 9 9 5 7 5 , 0 5 0 Le g a l d e b t m a r g i n 6 8 , 3 2 6 $ 4 9 , 7 3 7 $ 6 2 , 4 8 2 $ 5 9 , 1 4 0 $ 7 4 , 4 6 9 $ 7 9 , 7 3 9 $ 1 0 4 , 9 2 9 $ 1 0 9 , 4 9 9 $ 1 2 8 , 3 5 5 $ 1 4 3 , 9 2 4 $ 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 4 7 . 4 0 % 6 3 . 1 6 % 5 7 . 0 5 % 6 0 . 0 7 % 5 3 . 3 9 % 5 1 . 6 1 % 4 5 . 00 % 4 4 . 3 0 % 3 9 . 8 4 % 3 4 . 2 7 % To t a l A s s e s s e d V a l u a t i o n De b t L i m i t - 5 % o f T o t a l A s s e s s e d V a l u a t i o n 2 1 8 , 9 7 3 , 74 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 7 5 , 0 5 0, 0 0 0 Le g a l D e b t M a r g i n No t e : U n d e r I o w a c o d e , t h e c i t y ' s o u t s t a n d i n g g e n e r a l o b 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 . 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 Fi s c a l Y e a r La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) 4, 3 7 9 , 4 7 4 , 8 6 3 $ 14 3 , 9 2 3 , 7 4 3 $ Le g a l D e b t M a r g i n C a l c u l a t i o n f o r F i s c a l Y e a r 2 0 1 0 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 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 8 4 , 9 9 5 , 0 0 0 $ 1 7 , 7 1 0 , 9 1 5 $ 1 0 2 , 7 0 5 , 9 1 5 $ 8 8 , 2 1 1 , 5 8 3 $ 9 , 4 8 2 , 3 5 7 $ 5 , 0 1 1 , 9 7 5 $ 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 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 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 2010 6 5,509 3,149 2,360 390 504 894 2.64 Wastewater Treatment Revenue 4 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 2010 6 13,174 5,050 8,124 4,205 2,307 6,512 1.25 Water Revenue 5 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 2010 6 8,336 5,153 3,183 680 1,055 1,735 1.83 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) Fi s c a l Ye a r P r i n c i p a l I n t e r e s t T o t a l S e w e r R e v e n u e P a r k i n g R e v e nu e W a t e r R e v e n u e Pr i n c i p a l Ou t s t a n d i n g a t Be g i n n i n g o f F i s c a l Ye a r 20 1 0 1 33 , 6 7 0 , 0 0 0 $ 3 , 8 6 5 , 9 2 7 $ 3 7 , 5 3 5 , 9 2 7 $ 6 , 9 1 2 , 4 6 9 $ 8 9 3 , 8 6 2 $ 1 , 7 3 4 , 5 9 6 $ 8 7 , 8 1 5 , 0 0 0 $ 20 1 1 3 , 3 7 0 , 0 0 0 3 , 3 4 6 , 9 0 0 6 , 7 1 6 , 9 0 0 3 , 8 9 4 , 0 0 3 8 1 0 , 9 2 6 2 , 0 1 1 , 9 7 1 7 8 , 3 3 5 , 0 0 0 20 1 2 6 , 3 1 5 , 0 0 0 2 , 8 9 3 , 6 0 9 9 , 2 0 8 , 6 0 9 6 , 3 0 8 , 0 0 0 8 3 9 , 2 0 0 2 , 0 6 1 , 4 0 9 7 4 , 9 6 5 , 0 0 0 20 1 3 6 , 6 2 5 , 0 0 0 2 , 6 8 8 , 7 1 8 9 , 3 1 3 , 7 1 8 6 , 4 1 1 , 8 8 8 8 3 8 , 9 7 5 2 , 0 6 2 , 8 5 5 6 8 , 6 5 0 , 0 0 0 20 1 4 5 , 0 7 5 , 0 0 0 2 , 4 9 8 , 7 8 7 7 , 5 7 3 , 7 8 7 4 , 6 6 8 , 6 8 1 8 3 8 , 3 0 0 2 , 0 6 6 , 8 0 6 6 2 , 0 2 5 , 0 0 0 20 1 5 5 , 2 5 5 , 0 0 0 2 , 3 1 9 , 9 4 5 7 , 5 7 4 , 9 4 5 4 , 6 7 4 , 9 0 0 8 3 2 , 2 5 0 2 , 0 6 7 , 7 9 5 5 6 , 9 5 0 , 0 0 0 20 1 6 5 , 4 7 5 , 0 0 0 2 , 1 1 8 , 8 3 7 7 , 5 9 3 , 8 3 7 4 , 6 9 5 , 1 1 9 8 3 2 , 9 5 0 2 , 0 6 5 , 7 6 8 5 1 , 6 9 5 , 0 0 0 20 1 7 5 , 6 5 5 , 0 0 0 1 , 9 0 0 , 2 5 5 7 , 5 5 5 , 2 5 5 4 , 6 5 9 , 5 7 5 8 3 0 , 1 5 0 2 , 0 6 5 , 5 3 0 4 6 , 2 2 0 , 0 0 0 20 1 8 5 , 8 9 5 , 0 0 0 1 , 6 6 9 , 3 0 6 7 , 5 6 4 , 3 0 6 4 , 6 6 1 , 5 7 5 8 3 1 , 4 5 0 2 , 0 7 1 , 2 8 1 4 0 , 5 6 5 , 0 0 0 20 1 9 6 , 1 1 5 , 0 0 0 1 , 4 2 6 , 7 3 7 7 , 5 4 1 , 7 3 7 4 , 6 4 6 , 4 0 0 8 2 6 , 8 5 0 2 , 0 6 8 , 4 8 7 3 4 , 6 7 0 , 0 0 0 20 2 0 6 , 3 8 5 , 0 0 0 1 , 1 6 1 , 3 3 2 7 , 5 4 6 , 3 3 2 4 , 6 4 7 , 4 6 3 8 2 6 , 3 5 0 2 , 0 7 2 , 5 1 9 2 8 , 5 5 5 , 0 0 0 20 2 1 6 , 1 3 5 , 0 0 0 8 8 4 , 2 1 6 7 , 0 1 9 , 2 1 6 4 , 1 1 8 , 0 1 3 8 2 8 , 9 0 0 2 , 0 7 2 , 3 0 3 2 2 , 1 7 0 , 0 0 0 20 2 2 4 , 9 8 0 , 0 0 0 6 3 3 , 2 2 5 5 , 6 1 3 , 2 2 5 2 , 7 1 7 , 2 8 8 8 2 4 , 4 6 9 2 , 0 7 1 , 4 6 8 1 6 , 0 3 5 , 0 0 0 20 2 3 3 , 8 2 5 , 0 0 0 4 3 0 , 2 7 9 4 , 2 5 5 , 2 7 9 1 , 3 6 1 , 2 5 0 8 2 3 , 8 6 9 2 , 0 7 0 , 1 6 0 1 1 , 0 5 5 , 0 0 0 20 2 4 2 , 7 9 5 , 0 0 0 2 7 6 , 0 9 7 3 , 0 7 1 , 0 9 7 7 9 3 , 2 5 0 8 2 4 , 0 0 0 1 , 4 5 3 , 8 4 7 7 , 2 3 0 , 0 0 0 20 2 5 2 , 8 2 5 , 0 0 0 1 4 3 , 1 0 6 2 , 9 6 8 , 1 0 6 7 9 7 , 2 5 0 7 1 2 , 3 7 5 1 , 4 5 8 , 4 8 1 4 , 4 3 5 , 0 0 0 20 2 6 1 , 6 1 0 , 0 0 0 3 8 , 1 6 3 1 , 6 4 8 , 1 6 3 7 9 4 , 3 7 5 - 8 5 3 , 7 8 8 1 , 6 1 0 , 0 0 0 To t a l 1 1 2 , 0 0 5 , 0 0 0 $ 2 8 , 2 9 5 , 4 3 9 $ 1 4 0 , 3 0 0 , 4 3 9 $ 6 6 , 7 6 1 , 4 9 9 $ 1 3 , 2 1 4 , 8 7 6 $ 3 2 , 3 2 9 , 0 6 4 $ No t e s : 1 Ad d i t i o n a l p r i n c i p a l p a y m e n t s a b o v e t h e f u n d i n g s o u rc e s f o r 2 0 1 0 w e r e f u n d e d t h r o u g h t h e r e f u n d i n g o f bo n d s i s s u e d N o v e m b e r 2 0 0 9 a n d A p r i l 2 0 1 0 . Pa y m e n t s CI T Y O F I O W A C I T Y , I O W A RE V E N U E D E B T A N N U A L M A T U R I T Y S C H E D U L E Fu n d i n g S o u r c e ( s ) Fiscal Year Principal Interest Total 2010 1 390,000 $ 503,862 $ 893,862 $ 2011 420,000 390,926 810,926 2012 500,000 339,200 839,200 2013 515,000 323,975 838,975 2014 530,000 308,300 838,300 2015 540,000 292,250 832,250 2016 560,000 272,950 832,950 2017 580,000 250,150 830,150 2018 605,000 226,450 831,450 2019 625,000 201,850 826,850 2020 650,000 176,350 826,350 2021 680,000 148,900 828,900 2022 705,000 119,469 824,469 2023 735,000 88,869 823,869 2024 770,000 54,000 824,000 2025 695,000 17,375 712,375 Total 9,500,000 $ 3,714,876 $ 13,214,876 $ Fiscal Year Principal Interest Total 2010 1 4,205,000 $ 2,307,469 $ 6,512,469 $ 2011 1,840,000 2,054,003 3,894,003 2012 4,615,000 1,693,000 6,308,000 2013 4,865,000 1,546,888 6,411,888 2014 3,250,000 1,418,681 4,668,681 2015 3,370,000 1,304,900 4,674,900 2016 3,520,000 1,175,119 4,695,119 2017 3,625,000 1,034,575 4,659,575 2018 3,775,000 886,575 4,661,575 2019 3,915,000 731,400 4,646,400 2020 4,090,000 557,463 4,647,463 2021 3,740,000 378,013 4,118,013 2022 2,485,000 232,288 2,717,288 2023 1,220,000 141,250 1,361,250 2024 700,000 93,250 793,250 2025 740,000 57,250 797,250 2026 775,000 19,375 794,375 Total 50,730,000 $ 15,631,499 $ 66,361,499 $ (continued) Outstanding Sewer Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE Parking Fiscal Year Principal Interest Total 2010 1 680,000 $ 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 23,380,000 $ 8,949,064 $ 32,329,064 $ Notes: 1Amounts for Principal excludes called revenue bonds. Outstanding CITY OF IOWA CITY, IOWA REVENUE DEBT ANNUAL MATURITY BY FUNDING SOURCE (continued) Water 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 1 6 2 , 2 2 0 4 , 0 0 2 , 9 5 1 2 9 , 6 7 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 , 1 2 1 , 1 4 2 3 0 , 1 8 2 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 , 2 3 8 , 8 8 1 3 0 , 6 1 6 1 1 , 7 0 0 3 . 5 7 7 6 , 6 9 3 , 4 4 0 20 0 4 6 2 , 3 8 0 4 , 5 5 6 , 5 7 8 3 2 , 3 7 2 1 1 , 8 8 5 4 . 0 8 5 4 , 1 5 6 , 4 4 2 20 0 5 6 2 , 3 8 0 4 , 7 0 2 , 8 7 5 3 3 , 0 6 6 1 1 , 8 6 6 2 . 9 8 7 8 , 0 0 9 , 1 7 1 20 0 6 6 2 , 8 8 7 5 , 0 5 4 , 9 0 3 3 5 , 0 3 8 1 1 , 9 8 8 2 . 4 9 0 1 , 4 8 1 , 0 6 6 20 0 7 6 7 , 0 6 2 5 , 4 4 0 , 9 6 6 3 7 , 0 9 2 1 2 , 8 2 4 2 . 9 9 3 4 , 9 7 1 , 4 2 8 20 0 8 6 7 , 8 3 1 5 , 7 1 6 , 3 6 4 3 8 , 2 7 3 1 2 , 9 1 1 3 . 1 9 5 8 , 5 0 9 , 7 2 9 20 0 9 6 9 , 0 8 6 5 , 7 8 3 , 6 9 9 3 7 , 9 8 5 1 3 , 0 4 9 4 . 3 9 0 5 , 1 3 9 , 4 6 1 20 1 0 5 69 , 0 8 6 6 , 0 4 3 , 6 9 5 3 9 , 1 6 4 1 3 , 3 1 9 4 . 3 7 2 5 , 3 2 9 , 7 2 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 o n m e t r o p o l i t a n I o w a C i t y / C o r a l v i l l e a n d b a s e d on f i g u r e s f r o m B u r e a u o f Ec o n o m i c A n a l y s i s . P e r s o n a l I n c o m e e x p r e s s e d i n t h ou s a n d s . 2 Io w a C i t y C o m m u n i t y S c h o o l D i s t r i c t a n d l o c a l p r i v a te s c h o o l s 3 Io w a W o r k f o r c e D e v e l o p m e n t C e n t e r 4 Io w a R e t a i l S a l e s & U s e R e p o r t , I o w a D e p a r t m e n t o f Re v e n u e a n d F i n a n c e . F i s c a l y e a r e n d i n g M a r c h 3 1 . 5 Pe r s o n a l I n c o m e a n d P e r C a p i t a P e r s o n a l I n c o m e f o r 20 1 0 n o t a v a i l a b e . A m o u n t s p r o j e c t e d b a s e d o n a v e r ag e i n c r e a s e o v e r p r e v i o u s 9 y e a r s . 6 US C e n s u s B u r e a u DE M O G R A P H I C A N D E C O N O M I C S T A T I S T I C S CI T Y O F I O W A C I T Y , I O W A La s t T e n C a l e n d a r Y e a r s 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 1 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 , 6 4 8 1 3 5 , 0 6 9 1 3 6 . 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, 3 1 6 2 1 , 6 7 6 2 1 . 8 NC S P e a r s o n 1, 2 5 2 3 1 , 4 0 0 3 1 . 5 Ve t e r a n s A d m i n i s t r a t i o n M e d i c a l C e n t e r 1, 2 3 9 4 1 , 3 5 1 4 1 . 4 Me r c y H o s p i t a l 1, 2 1 4 5 1 , 2 6 6 5 1 . 3 AC T I n c . ( f o r m e r l y A m e r i c a n C o l l e g e T e s t i n g P r o g r a m ) 1 , 1 0 0 6 1 , 2 2 1 6 1 . 3 Hy - V e e 84 3 8 1 , 1 6 6 7 1 . 2 Ci t y o f I o w a C i t y 61 3 1 0 9 5 7 8 1 . 0 In t e r n a t i o n a l A u t o m o t i v e C o m p o n e n t s f o r m e r l y L e a r C or p 9 0 0 7 8 3 8 9 0 . 9 Gi l l e t t e C a n a d a ( O r a l B L a b o r a t o r i e s ) 73 1 9 72 0 1 0 0 . 8 32 , 8 5 6 45 , 6 6 4 48 . 1 % To t a l E m p l o y e e s 95 , 0 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 mu n i t y P r o f i l e ( i n c l u d i n g f u l l a n d p a r t - t i m e e m p l o y ee 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 1 , p e r c e n t a g e o f t o t a l c i t y e m p l o y m e n t b y e m p l o y e r i s n o t p r e s e n t e d . 20 1 0 2001 2002 2003 2004 2005 2006 Public Safety Police 96.25 97.25 97.25 97.25 94.25 94.25 Fire 52 58 58 58 56 57 Animal Shelter 5.5 5.5 6 6 6 6 Inspection Services 14.13 14.13 14.13 14.13 13.88 14.88 Public Works Public Works Admin 3 2 2 2 2 2 Engineering 11.6 13.6 13.6 13.6 11.6 11.6 Traffic Engineering 4.15 4.15 5.65 5.65 5.65 4.15 Streets 23.5 23.5 22 22 22 23.5 Culture and Recreation Parks and Rec Admin 2 2 2 2 2 2 Recreation 15.17 15.17 15.17 15.17 15.17 15.17 Parks 13 13 13 13 12 13 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 41.25 41.25 43.25 42.63 42.63 Senior Center 6 6 5.81 5.81 6.31 6.31 Community and Economic Development 8.55 9.05 8.35 9.45 8.45 8.45 General Government City Council 7 7 7 7 7 7 City Manager 3 3 3 3 3 3 City Clerk 4.5 4.5 4 4 4 4 City Attorney 6 6.6 6.6 6.6 6.6 6.6 Tort Liabiltiy, Insurance Personnel 4 4 4 4 4 4 Finance 27.36 28.61 28.61 28.61 26.61 26.75 Government Buildings 4.97 4.96 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 2.5 2.5 2.5 2.5 Transit 48.25 48.5 48.5 48.5 50.5 50.5 Special Revenue Employee Benefits 0.45 0.4 0.34 0.34 0.34 0.39 CIP / Roads 6 7 7 7 3 2 Community Development 4.75 4.75 5.45 5.35 4.35 4.35 JCCOG 6.1 6.1 6.1 6.1 6.1 6.6 Library Development 1.5 1.5 1.5 1.5 0.8 1 Internal Service Funds Information Technology 7.5 7.5 7.5 7.5 8 11.75 Equipment 9.5 10.25 11.25 11.26 11.25 11.26 Central Services 2.25 0.75 0.75 0.75 0.75 0.75 Risk Management 1.46 1.26 1.33 1.33 1.32 1.38 Business-Type Activities Parking 37 37 31.5 31.5 32.75 32.75 Wastewater Treatment 25.3 26.3 26.3 27.3 27.3 25.5 Water 26.2 28.2 30.7 31.7 31.7 32.5 Sanitation 32.35 32.35 32.35 32.35 34.35 33.85 Airport 2 2 2 2 2 1.6 Cable television 5.25 5.25 6.19 6.19 6.19 6.19 Stormwater 0.5 Housing Authority 12.5 12.5 12.5 12.5 12.75 13.25 Total 591.79 606.38 605.64 610.65 599.56 605.37 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 2007 2008 2009 2010 96.25 96.25 103.25 103.25 57 57 57 57 6 6 6 6 14.88 15.38 15.55 15.55 2 2 2 2 11.6 11.35 11.35 11.35 4.15 4.15 4.15 4.15 23.5 23.5 25.5 25.5 2 2 2 2 15.42 15.42 15.42 15.42 13 13 13 13 3 3 3 3 3 3 3 3 3 3 3 3 42.89 43.14 43.14 43.14 6.31 6.31 6.31 6.31 8.45 8.95 9.05 9.05 7 7 7 7 3 3 3 3 4 4 4 4 6.6 6.6 6 6 1 1 4 4 4 4 26.75 26.5 25.3 25.3 4.96 4.96 4.96 4.96 0.5 0.25 0.25 0.25 2.5 2.5 2.5 2.5 50.5 54.75 58.5 58.5 0.39 0.29 0.29 0.29 2 1 2 2 4.35 3.98 3.88 3.88 6.6 6.6 6.6 6.6 1 1 1 1 12 12.3 12.3 12.3 11.26 11.26 11.26 11.26 0.75 0.75 0.75 0.75 1.38 1.73 1.93 1.93 32.75 32.75 33.25 33.25 25.5 25.5 25.6 25.6 32 32.75 32.75 32.75 33.85 34.85 34.85 35.85 1.6 1.6 1.75 1.75 6.19 6.19 6.44 6.44 1 2 1.9 1.9 13.25 13.25 13.25 13.25 608.13 614.81 629.03 630.03 Full-Time Equivalent Employees as of June 30 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Pu b l i c S a f e t y P o l i c e 1 P h y s i c a l a r r e s t s 7, 3 3 9 8 , 9 2 9 8 , 0 1 6 7 , 2 8 8 7 , 5 2 8 6 , 8 9 5 6 , 5 0 5 6 , 4 3 4 6 , 4 8 6 4 , 9 3 9 T r a f f i c V i o l a t i o n s 8 , 0 4 7 7 , 6 3 9 7 , 4 2 8 8 , 5 1 5 7 , 4 2 8 8 , 1 98 6 , 6 8 4 5 , 8 2 7 4 , 4 6 0 3 , 4 9 8 F i r e 2 N u m b e r o f c a l l s a n s w e r e d 3 , 5 7 0 3 , 5 1 9 3 , 5 4 6 3 , 5 1 8 3 , 59 6 3 , 6 7 9 4 , 1 3 6 4 , 2 5 7 4 , 1 5 2 3 , 8 5 1 I n s p e c t i o n s c o n d u c t e d 1 , 0 7 9 9 8 9 9 3 6 9 7 5 1 , 0 8 3 1 , 2 3 2 1 ,4 9 5 1 , 7 1 2 1 , 9 5 9 1 , 7 8 1 Pa r k i n g P a r k i n g V i o l a t i o n s 3 N/ A N / A 1 8 6 , 6 7 4 1 5 5 , 3 3 8 1 4 5 , 0 3 3 1 3 9 , 3 3 8 1 6 6 , 1 8 7 1 4 7 , 6 7 3 1 2 6 ,0 5 0 1 1 8 , 7 1 7 Wa s t e w a t e r T r e a t m e n t D a i l y a v e r a g e t r e a t m e n t i n g a l l o n s 4 5, 7 1 0 , 0 0 0 5 , 1 1 0 , 0 0 0 4 , 5 3 0 , 0 0 0 4 , 9 6 0 , 0 0 0 4 , 8 7 0 , 0 0 0 4 , 5 8 0 , 00 0 9 , 4 3 0 , 0 0 0 1 2 , 8 1 0 , 0 0 0 1 2 , 3 4 0 , 0 0 0 1 2 , 8 6 0 , 0 0 0 M a x i m u m d a i l y c a p a c i t y o f p l a n t i n g a l l o n s 3 5 , 0 00 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0 , 0 0 0 4 0 , 0 0 0, 0 0 0 4 0 , 0 0 0 , 0 0 0 4 1 , 0 0 0 , 0 0 0 4 1 , 0 0 0 , 0 0 0 4 1 , 1 0 0 , 0 0 0 N u m b e r o f s e w e r s y s t e m c u s t o m e r s 1 9 , 4 8 0 2 0 , 1 0 6 2 0 ,7 0 8 2 1 , 1 6 5 2 1 , 5 5 2 2 2 , 0 4 6 2 2 , 4 8 1 2 2 , 9 0 9 2 3 , 1 6 1 2 3 , 3 4 4 Wa t e r D a i l y a v e r a g e c o n s u m p t i o n i n g a l l o n s 5 , 7 1 7 , 0 0 0 6 ,0 0 0 , 0 0 0 6 , 0 3 4 , 0 0 0 5 , 7 4 2 , 0 0 0 5 , 4 4 8 , 5 0 0 5 , 6 8 0 , 6 0 0 5 , 5 1 6 , 2 38 5 , 4 7 5 , 1 2 2 5 , 5 0 8 , 0 7 7 5 , 4 8 3 , 2 5 5 M a x i m u m d a i l y c a p a c i t y o f p l a n t i n g a l l o n s 1 0 , 5 00 , 0 0 0 1 0 , 5 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0, 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 1 6 , 7 0 0 , 0 0 0 Wa t e r S y s t e m C u s t o m e r s b y C l a s s i f i c a t i o n R e s i d e n t i a l 19 , 6 0 0 2 0 , 3 0 8 2 0 , 9 9 2 2 1 , 5 2 7 2 1 , 9 7 2 2 2 , 5 2 9 2 2 , 9 7 3 2 1 , 4 5 4 2 1 , 33 4 2 1 , 5 6 0 C o m m e r c i a l 1, 3 2 5 1 , 3 4 1 1 , 3 5 8 1 , 3 7 7 1 , 4 0 0 1 , 4 0 8 1 , 4 4 8 1 , 3 7 8 1 , 3 8 5 1 , 3 7 2 I n d u s t r i a l 12 1 2 1 2 1 3 1 3 1 3 1 3 1 3 1 4 1 3 O t h e r 12 4 1 2 4 1 2 7 1 2 5 1 2 9 1 3 4 1 3 7 1 3 9 1 4 2 1 4 8 T o t a l C u s t o m e r s 2 1 , 0 6 1 2 1 , 7 8 5 2 2 , 4 8 9 2 3 , 0 4 2 2 3 , 5 1 4 2 4 ,0 8 4 2 4 , 5 7 1 2 2 , 9 8 4 2 2 , 8 7 5 2 3 , 0 9 3 Sa n i t a t i o n N u m b e r o f C u s t o m e r s 1 3 , 5 5 5 1 3 , 6 6 8 1 3 , 8 0 6 1 3 , 9 8 3 1 4 , 15 8 1 4 , 3 7 1 1 4 , 5 5 6 1 4 , 5 7 4 1 4 , 7 0 0 1 4 , 8 3 1 T o n s 7, 9 0 5 8 , 1 3 8 8 , 0 6 2 8 , 7 1 6 8 , 6 6 7 8 , 4 6 3 8 , 7 2 2 8 8 3 4 8 , 7 4 7 8 , 8 6 9 L a n d f i l l T o n n a g e 97 , 2 0 8 1 0 3 , 4 0 4 1 0 3 , 5 8 5 1 0 8 , 1 5 5 1 1 3 , 3 5 6 1 1 1 , 1 2 4 1 3 5 , 3 1 5 1 3 2 ,7 6 0 1 4 0 , 8 1 0 1 5 0 , 3 6 9 So u r c e s : Va r i o u s c i t y d i v i s i o n s . No t e s : 1 N u m b e r s a r e b a s e d o n a c a l e n d a r y e a r a n d 2 0 1 0 f i g u re s a r e c o m p i l e d t h r o u g h 1 1 / 3 0 / 1 0 . 2 Nu m b e r s a r e b a s e d o n a c a l e n d a r y e a r a n d 2 0 1 0 f i g u r es a r e c o m p i l e d t h r o u g h 1 0 / 0 1 / 1 0 f o r i n s p e c t i o n a n d 1 0 / 0 1 / 1 0 f o r c a l l s . 3 I n f o r m a t i o n o n t h e n u m b e r o f p a r k i n g v i o l a t i o n s n o t a v a i l a b l e f o r F Y 0 1 a n d F Y 0 2 . 4 Nu m b e r s f o r F Y 0 7 a n d a f t e r a r e b a s e d o n b o t h t h e N o rt h a n d S o u t h W a s t e w a t e r P l a n t s . CI T Y O F I O W A C I T Y , I O W A OP E R A T I N G I N D I C A T O R S B Y F U N C T I O N La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 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 8 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 9 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 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 2 7 2 S t r e e t L i g h t s 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 95 3 , 4 0 3 3 , 4 0 8 3 , 4 1 0 Cu l t u r e a n d R e c r e a t i o n L i b r a r y 1 1 1 1 1 1 1 1 1 1 C e m e t e r y 1 1 1 1 1 1 1 1 1 1 A c r e a g e 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 P a r k s 50 5 0 5 0 6 1 6 1 6 1 6 1 6 1 6 1 4 0 A c r e a g e 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 1 3 3 5 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 3 1 3 0 3 0 T e n n i s c o u r t s 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 S o c c e r f i e l d s 2 5 2 5 2 5 2 5 2 5 2 5 2 5 2 5 2 0 2 0 (c o n t i n u e d ) CI T Y O F I O W A C I T Y , I O W A CA P I T A L A S S E T S B Y F U N C T I O N La s t T e n F i s c a l Y e a r s Fi s c a l Y e a r 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 Pa r k i n g F a c i l i t i e s 4 4 4 4 4 5 5 5 5 5 S p a c e s 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 30 8 6 3 0 8 6 Wa s t e w a t e r T r e a t m e n t M i l e s o f s a n i t a r y s e w e r 2 6 3 2 6 6 2 6 9 2 7 4 2 7 7 2 8 0 2 8 6 2 8 8 2 8 9 2 9 1 M i l e s o f s t o r m s e w e r 9 1 9 4 9 8 1 0 2 1 0 5 1 1 0 1 1 7 1 1 8 1 2 0 1 2 2 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 1 , 0 6 1 2 1 , 7 8 5 2 2 , 5 1 4 2 3 , 07 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 2 3 , 3 4 4 Wa t e r M i l e s o f w a t e r m a i n s 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 2 9 0 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 , 1 0 9 2 , 1 8 2 2 , 2 4 3 2, 3 4 0 2 , 4 4 8 2 , 4 7 4 2 , 5 6 9 2 , 5 7 5 2 6 3 5 2 6 6 2 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 3 9 5 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 . 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 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, 2010, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 15, 2010. 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 was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies in internal control described in Part II of the accompanying Schedule of Findings and Questioned Costs as items II-A-10 and II-B-10 to be material weaknesses. 133 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards . Comments involving statutory and other legal matters about the City’s operations for the year ended June 30, 2010, 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 responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. While we have expressed our conclusion on the City’s responses, we did not audit the City’s responses, and accordingly, we express no opinion on them. 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, and is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 15, 2010, except for Note 3 to the Schedule of Expenditures of Federal Awards which is dated May 31, 2012 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 THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Honorable Mayor and Members of the City Council City of Iowa City, Iowa Compliance We have audited the compliance of the City of Iowa City, Iowa, with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2010. The City’s major federal programs are identified in the summary of the independent auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States; and OMB Circular A-133. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether non- compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with those requirements. In our opinion, the City of Iowa City, Iowa, complied, in all material respects, with the compliance requirements referred to above that that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2010. Subsequent to the issuance of the City’s 2010 financial statements and our report dated December 15, 2010, 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-B-10 should be included within this report. In our original report we expressed an unqualified opinion on the 2010 compliance, and our opinion on compliance, as expressed herein, remains unqualified. 135 Internal Control Over Compliance 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 grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report, 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, and is not intended to be and should not be used by anyone other than these specified parties. Dubuque, Iowa December 15, 2010, except for Note 3 to the Schedule of Expenditures of Federal Awards which is dated May 31, 2012 136 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2010 Pass-Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Commerce Direct Program Economic Adjustment Assistance 11.307 $ 5,603 Economic Adjustment Assistance 11.307 27,684 Total U.S. Department of Commerce 33,287 U.S. Department of Housing and Urban Development Direct Program Community Development Block Grants/ Entitlement Grants 14.218 279,566 Community Development Block Grants/ Entitlement Grants 14.218 515,972 795,538 Pass-Through Program From Iowa Department of Economic Development Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRMH-015 584,709 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRMH-215 829,858 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRB-204 819,294 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRH-210 1,297,500 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRI-071 34,650 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRHB-225 1,896,523 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 14.228 08-DRH-010 2,387,928 7,850,462 137 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass-Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Housing and Urban Development (continued) Direct Program HOME Investment Partnerships Program 14.239 $ 61,186 HOME Investment Partnerships Program 14.239 53,272 HOME Investment Partnerships Program 14.239 184,569 HOME Investment Partnerships Program 14.239 202,297 501,324 ARRA – Community Development Block Grant ARRA Entitlement Grants (CDBG-R) (Recovery Act Funded) 14.253 176,785 Public and Indian Housing 14.850 122,330 Public and Indian Housing 14.850 106,870 229,200 Section 8 Housing Choice Vouchers 14.871 7,237,907 Public Housing Capital Fund 14.872 44,415 Public Housing Capital Fund 14.872 109,360 153,775 ARRA - Public Housing Capital Fund Stimulus (Formula) Recovery Act Funded 14.885 169,005 Total U.S. Department of Housing and Urban Development 17,113,996 U.S. Department of Justice Pass-Through Program From Iowa Department of Justice Violence Against Women Formula Grants 16.588 VW-10-34 46,929 Direct Program Bulletproof Vest Partnership Program 16.607 216 Bulletproof Vest Partnership Program 16.607 1,535 1,751 Pass-Through Program From Governor’s Office of Drug Control Policy Public Safety Partnership and Community 09-Hotspots/ Policing Grants 16.710 Interdiction-09 1,642 Direct Program Edward Byrne Memorial Justice Assistance Grant Program 16.738 6,698 Edward Byrne Memorial Justice Assistance Grant Program 16.738 2,885 9,583 138 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass-Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Justice (continued) Pass-Through Program From Governor’s Office of Drug Control Policy ARRA – Edward Byrne Memorial Justice Assistance Grant Program/Grants to States and Territories 16.803 09JAG/ARRA-206 $ 123,675 Direct Program ARRA – Edward Byrne Memorial Justice Assistance Grant Program/Grants to Units of Local Government 16.804 179,973 Total U.S. Department of Justice 363,553 U.S. Department of Transportation Direct Program Airport Improvement Program 20.106 1,673 Airport Improvement Program 20.106 281,569 Airport Improvement Program 20.106 6,635 Airport Improvement Program 20.106 26,678 ARRA - Airport Improvement Program 20.106 1,269,453 Airport Improvement Program 20.106 6,715 Airport Improvement Program 20.106 1,698,358 3,291,081 Pass-Through Program From Iowa Department of Transportation Highway Planning and Construction 20.205 FHWAIA08-05 23,628 Highway Planning and Construction 20.205 FHWAIA08-02 18,898 Highway Planning and Construction 20.205 FHWAIA08-03 34,829 Highway Planning and Construction 20.205 10MPO-JCCOG 126,681 ARRA -Highway Planning and Construction 20.205 ESL-3715(643)--7S-52 600,000 Highway Planning and Construction 20.205 HDP-3715(628)--71-52 357,184 1,161,220 Federal Transit – Capital Investment Grants 20.500 IA-04-0113-371-07 4,268 Federal Transit – Capital Investment Grants 20.500 IA-04-0113-371-10 882,474 886,742 Federal Transit – Metropolitan Planning Grants 20.505 10MPO-JCCOG 33,136 139 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass-Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Transportation (continued) Direct Program Federal Transit – Formula Grants 20.507 $ 904,110 Pass-Through Program From Iowa Department of Transportation ARRA - Federal Transit – Formula Grants 20.507 IA-96-0001-210-09 1,057,448 1,961,558 Capital Assistance Program for Elderly Persons and Persons with Disabilities 20.513 IA-16-X001-371-10 94,336 Job Access – Reverse Commute 20.516 IA-37-X012-371-09 560 Job Access – Reverse Commute 20.516 IA-37-X017-371-10 93,451 Job Access – Reverse Commute 20.516 IA-37-X017-371-09 32,267 126,278 Iowa Department of Public Safety, Governor’s Traffic Safety Bureau Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 PAP-10-410, Task 36 19,138 Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 PAP-09-410, Task 36 10,595 29,733 Total U.S. Department of Transportation 7,584,084 U.S. Department of Energy Direct Program ARRA - Energy Efficiency and Conservation Block Grant Program 81.128 20,211 U.S. Department of Education Pass-Through Program From Iowa Department of Education ARRA – State Fiscal Stabilization Fund - Government Services, Recovery Act 84.397 S397A090016A 75,568 140 CITY OF IOWA CITY, IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued) YEAR ENDED JUNE 30, 2010 Pass-Through Entity Identifying Program Grantor/Program CFDA Number Number Expenditures U.S. Department of Homeland Security Pass-Through Program From Iowa Homeland Security and Emergency Management Division Disaster Grants – Public Assistance (Presidentially Declared Disasters) 97.036 FEMA-1763-DR-IA $ 1,565,813 Hazard Mitigation Grant (B) 97.039 FEMA-DR-1763-0015 01 3,622,952 Hazard Mitigation Grant (B) 97.039 DR-1737-0001-01 8,301 Hazard Mitigation Grant (B) 97.039 DR-1763-0137-01 7,142 3,638,395 Direct Program Assistance to Firefighters Grant 97.044 EMW-2008-FR-00186 906,400 Total U.S. Department of Homeland Security 6,110,608 Total $ 31,301,307 See notes to the Schedule of Expenditures of Federal Awards. 141 CITY OF IOWA CITY, IOWA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2010 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations . Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2. SUBRECIPIENTS Of the federal expenditures presented in the schedule, the City of Iowa City, Iowa, provided federal awards to subrecipients as follows: Federal Amount Provided Program Title CFDA Number to Subrecipients Community Development Block Grants/ Entitlement Grants 14.218 $ 666,836 HOME Investment Partnerships Program 14.239 326,630 Edward Byrne Memorial Justice Assistance Grant Program 16.738 9,243 ARRA – Edward Byrne Memorial Justice Assistance Grant Program/Grants to States and Territories 16.803 60,214 ARRA – Edward Byrne Memorial Justice Assistance Grant Program/Grants to Units of Local Government 16.804 106,610 NOTE 3. RESTATEMENT The City’s 2010 Schedule of Expenditures of Federal Awards was reissued to report $3,622,952 of expenditures under CFDA# 97.039 Hazard Mitigation Grant (B), instead of CFDA# 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters). A material weakness was added to the Schedule of Findings and Questioned Costs as finding II-B-10. 142 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 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 None reported Noncompliance material to financial statements noted No Federal Awards Internal control over major programs: Material weakness identified No Significant deficiency None reported Type of auditor’s report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a) No Identification of major programs: CFDA Number Name of Federal Program or Cluster Cluster: 14.218 Community Development Block Grants/ Entitlement Grants 14.253 ARRA – Community Development Block Grant ARRA Entitlement Grants (CDBG-R) (Recovery Act Funded) 14.228 Community Development Block Grants/ State’s Program and Non-Entitlement Grants in Hawaii 16.804 ARRA – Edward Byrne Memorial Justice Assistance Grant Program/Grants to Units of Local Government 20.106 Airport Improvement Program 20.205 Highway Planning and Construction Cluster: 20.500 Federal Transit – Capital Investment Grants 20.507 Federal Transit – Formula Grants 97.044 Assistance to Firefighters Grant Dollar threshold used to distinguish between Type A and Type B programs $939,039 Auditee qualified as low-risk auditee No 143 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 Part II: Findings Related to the Financial Statements : MATERIAL WEAKNESSES: II-A-10 Material Audit Adjustment Criteria – A properly designed system of internal control over financial reporting allows entities to initiate, authorize, record, process, and report financial data reliably in accordance with generally accepted accounting principles. Condition – During the course of our engagement, we proposed a material audit adjustment to the financial statements that would not have been identified as a result of the City’s existing internal controls and, therefore, could have resulted in a material misstatement of the City’s financial statements. The adjustment was related to a loan receivable within the Shared Revenue Fund. Cause –There was a miscommunication between the Accounting Division and the Planning and Community Development Department regarding a payment from the Shared Revenue Fund that was a loan, not a grant. Effect – The effect of this condition was that if the adjustment had not been recorded, the financial statements would have been materially misstated. Recommendation – We recommend that finance staff work together with the Planning and Community Development Department to develop a process to identify and track the needed information to record the proper receivable and deferred revenue balances at year end. Response – A separate expenditure account number has been set up for Aid to Agency payments that are external loans to help identify these payments in the General Ledger as loans versus assistance payments. The Accounting Division will look at an internal control process to track balances in the Accounting Division to be used as a comparison to balances maintained in Planning and Community Development. Finance staff will work with the Planning and Community Development Department staff to identify the necessary information to record the proper receivable and deferred revenue balances at year end. Due to an increase in Federal and State funding for flood and stimulus grants, the Accounting Division was already in the process of hiring an additional accountant, whose primary responsibility will be grants and who will be able to commit more time to grant reporting to help prevent issues like this in the future. Conclusion – Response accepted. 144 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 Part II: Findings Related to the Financial Statements : (continued) II-B-10 Material Adjustment 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 adjustment 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 97.036 was entered rather than 97.039. 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 major 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 January 2011 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. 145 CITY OF IOWA CITY, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2010 Part III: Other Findings Related to Required Statutory Reporting : III-A-10 Certified Budget – Disbursements during the year ended June 30, 2010, did not exceed the amount budgeted. III-B-10 Questionable Expenditures – We noted no expenditures that we believe may fail to meet the requirements of public purpose as defined in an Attorney General’s opinion dated April 25, 1979. III-C-10 Travel Expense – No expenditures of City money for travel expenses of spouses of City officials or employees were noted. III-D-10 Business Transactions – No business transactions between the City and City officials or employees were noted. III-E-10 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-10 Council Minutes – No transactions were found that we believe should have been approved in the Council minutes but were not. III-G-10 Deposits and Investments – No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of Iowa and the City’s investment policy were noted. III-H-10 Revenue Bonds – No instances of non-compliance with the provisions of the City’s revenue bond resolutions were noted. 146