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FY2016 Longterm Debt Disclosure Report Finance and Operating Report For the City of Iowa City, Iowa Pursuant to Securities and Exchange Commission Rule 15c2-12 Through the Fiscal Year Ended June 30, 2016 Financial and Operating Data General Obligation Debt To the extent not included in the City’s Financial Statements, all information the City of Iowa City has agreed to provide in its annual reports, as it relates to its outstanding general obligation debt is included in this report. Attached is additional information as required to be submitted under previous disclosure undertakings of the City. 01/20/2017 CITY PROPERTY VALUES IOWA PROPERTY VALUATIONS In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The Johnson County Auditors adjusted the final Actual Values for 2014. The reduced values, determined after the application of rollback percentages, are the taxable values subject to tax levy. For assessment year 2014, the taxable value rollback rate was 55.7335% of actual value for residential property; 44.7021% of actual value for agricultural property; and 90% of actual value for commercial, industrial, and railroad property. No adjustment was ordered for utility property because its assessed value did not increase enough to qualify for reduction. Utility property is limited to an 8% annual growth. The Legislature’s intent has been to limit the growth of statewide taxable valuations for the specific classes of property to 3% annually. Political subdivisions whose taxable valuations are thus reduced or are unusually low in growth are allowed to appeal the valuations to the State Appeal Board, in order to continue to fund present services. PROPERTY VALUATIONS (1/1/2014 Valuation Taxes payable July 1, 2015 to June 30, 2016) Taxable Value 100% Actual Value (With Rollback) Residential $3,603,743,609 $2,008,493,138 Commercial 1,129,397,979 1,016,458,199 Industrial 74,399,739 66,959,765 Railroads 4,015,580 3,614,022 Utilities w/o Gas & Electric 8,239,789 8,239,789 Gross valuation $4,819,796,696 $3,103,764,913 Less military exemption (2,828,002) (2,828,002) Net valuation $4,816,968,694 $3,100,936,911 TIF increment (used to compute debt service levies and constitutional debt limit) $42,307,287 $33,331,128 Taxed separately Ag. Land & Buildings $3,553,520 $1,588,496 Gas & Electric Utilities $87,728,294 $46,785,426 2014 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY 1) Taxable Valuation Percent Total Residential $2,008,493,138 63.75% Commercial, Industrial and Utility 1,091,657,753 34.65% Gas & Electric Utilities 46,785,426 1.48% Railroads 3,614,022 0.12% Total Gross Taxable Valuation $3,150,550,339 100.00% 1) Excludes Taxable TIF Increment and Ag. Land & Buildings. TREND OF VALUATIONS Assessment Payable Taxable Valuation Taxable TIF Year Fiscal Year 100% Actual Valuation (With Rollback) Increment 2011 2012-13 $4,615,527,744 $2,946,951,863 $11,712,327 2012 2013-14 4,668,318,992 3,020,306,824 14,113,908 2013 2014-15 4,826,647,177 3,114,066,554 21,131,574 2014 2015-16 4,950,557,795 3,147,722,337 33,331,128 2015 1) 2016-17 5,350,243,693 3,347,028,340 72,650,838 1) The City’s 1/1/2015 valuations are now available from the State of Iowa and became effective July 1, 2016. The 100% Actual Valuations, before rollback and after the reduction of military exemption, include Ag. Land & Buildings, Taxable TIF Increment and Gas & Electric Utilities. The Taxable Valuations, with the rollback and after the reduction of military exemption, include Gas & Electric Utilities and exclude Ag. Land & Buildings and Taxable TIF Increment. Iowa cities certify operating levies against Taxable Valuation excluding Taxable TIF Increment and debt service levies are certified against Taxable Valuation including the Taxable TIF Increment. With the exception of the electric and natural gas providers (which is subject to an excise tax in accordance with Iowa Code chapter 437A), the City’s mill levy is uniformly applicable to all of the properties included in the table, and thus taxes expected to be received by the City from such taxpayers will be in proportion to the taxable valuations of the properties. LARGER TAXPAYERS Set forth in the following table are the persons or entities which represent larger taxpayers within the boundaries of the City, as provided by the Johnson County Auditor’s Office. No independent investigation has been made of and no representation is made herein as to the financial condition of any of the taxpayers listed below or that such taxpayers will continue to maintain their status as major taxpayers in the City. With the exception of the electric and natural gas provider noted below (which is subject to an excise tax in accordance with Iowa Code chapter 437A), the City’s mill levy is uniformly applicable to all of the properties included in the table, and thus taxes expected to be received by the City from such taxpayers will be in proportion to the taxable valuations of the properties. The total tax bill for each of the properties is dependent upon the mill levies of the other taxing entities which overlap the properties. 1/1/2014 Taxpayer 1) Type of Property/Business Taxable Valuations Mid American Energy Co. Utility $44,301,833 American College Testing, Inc. Commercial 44,150,558 Ann S. Gerdin Revocable Trust Commercial 21,232,925 Dealer Properties IC LLC Commercial 18,675,864 Procter & Gamble Hair Care LLC Industrial 15,418,708 Alpla, Inc. Industrial 14,615,928 CCAL 100 Hawk Ridge Drive LLC Residential 13,171,260 National Computer Systems Inc. Commercial 12,428,352 Wal-Mart Real Estate Commercial 12,078,378 Kobrin Development Company Inc. Commercial & Residential 11,711,744 1) This list represents some of the top taxpayers in the City, not necessarily the top 10 taxpayers. Source: Johnson County Auditor’s Office PROPERTY TAX LEGISLATION During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the “Act”), which the Governor signed into law on June 12, 2013. Among other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential and agricultural property, from the 4% to 3%, (ii) assigned a “rollback” (the percentage of a property’s value that is subject to tax) to commercial, industrial and railroad property of 95% for the 2013 assessment year and 90% for the 2014 assessment year and all years thereafter, (iii) created a new property tax classification for multi-residential properties (mobile home parks, manufactured home communities, land-lease communities, assisted living facilities and property primarily used or intended for human habitation containing three or more separate dwelling units) (“Multi-residential Property”) that began in the 2015 assessment year, and assigned a declining rollback percentage of 3.75% to such properties for each subsequent year until the 2021 assessment year (the rollback percentage for Multi-residential Properties is equal to the residential rollback percentage in the 2022 assessment year and thereafter) and (iv) exempted a specified portion of the assessed value of telecommunication properties. The Act included a standing appropriation to replace some of the tax revenues lost by local governments, including tax increment districts, resulting from the new rollback for commercial and industrial property. Prior to Fiscal Year 2017-18, the appropriation is a standing unlimited appropriation, but beginning in Fiscal Year 2017-18 the standing appropriation cannot exceed the actual Fiscal Year 2016-17 appropriation amount. The appropriation does not replace losses to local governments resulting from the Act’s provisions that reduce the annual revaluation growth limit for residential and agricultural properties from 4% to 3%, the gradual transition for Multi-residential Property from the commercial rollback percentage (100% of Actual Value) to the residential rollback percentage (currently 55.7335% of Actual Valuation), or the reduction in the percentage of telecommunications property that is subject to taxation. Given the wide scope of the statutory changes, and the State of Iowa’s discretion in establishing the annual replacement amount that is appropriated each year commencing in Fiscal Year 2017-18, the impact of the Act on the City’s future property tax collections is uncertain and the City is unable to estimate the financial impact of the Act’s provisions on the City’s future operations. In Moody’s Investor Service US Public Finance Weekly Credit Outlook, dated May 30, 2013, Moody’s Investor Service (“Moody’s”) projected that local governments in the State of Iowa are likely to experience modest reductions in property tax revenues starting in Fiscal Year 2014-15 as a result of the Act, with sizeable reductions possible starting in Fiscal Year 2017-18. According to Moody’s, local governments that may experience disproportionately higher revenue losses include regions that have a substantial commercial base, a large share of Multi-residential Property (such as college towns), or significant amounts of telecommunications property. Notwithstanding any decrease in property tax revenues that may result from the Act, Iowa Code section 76.2 provides that when an Iowa political subdivision issues general obligation bonds, “the governing authority of these political subdivisions before issuing bonds shall, by resolution, provide for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the bonds within a period named not exceeding twenty years. A certified copy of this resolution shall be filed with the county auditor or the auditors of the counties in which the political subdivision is located; and the filing shall make it a duty of the auditors to enter annually this levy for collection from the taxable property within the boundaries of the political subdivision until funds are realized to pay the bonds in full.” From time to time, other legislative proposals may be considered by the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described in this Official Statement. It cannot be predicted whether or in what forms any of such proposals may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for the levy of taxes by the City. GENERAL FUND BUDGET The table below summarizes fiscal year actuals for years ending June 30, 2015 and June 30, 2016, and the 2017 Amended Budget as estimated at December 16, 2016. Revenues & Other Financing Sources 2015 Actual 2016 Actual 2017 Revised Property Taxes 29,421,531$ 29,796,656$ 31,739,199$ Other City Taxes 2,487,767 2,431,882 2,430,717 Licenses And Permits 1,805,901 3,056,051 2,450,882 Use Of Money And Property 800,227 689,835 706,672 Intergovernmental 3,519,060 3,803,459 3,664,921 Charges For Fees And Services 1,509,496 1,607,320 1,358,601 Miscellaneous 4,446,754 4,603,845 5,697,432 Other Financial Sources 2,762,834 2,678,802 2,007,295 Sub-total Revenues & Other Financing Sources (excluding Transfers In):46,753,570 48,667,850 50,055,719 Transfers In 10,642,456 12,468,366 10,560,745 Total Revenues, Other Financing Sources, & Transfers In 57,396,026$ 61,136,216$ 60,616,464$ Expenditures & Transfers Out 2015 Actual 2016 Actual 2017 Revised Personnel 34,881,306$ 35,579,630$ 39,093,574$ Services 8,534,211 8,290,221 10,263,306 Supplies 1,272,811 1,515,890 1,601,411 Capital Outlay 3,477,841 1,970,355 3,368,705 Debt Service 1,154,500 1,842,500 900,000 Contingency - - 184,519 Sub-total Expenditures:49,320,669 49,198,596 55,411,515 Transfers Out 6,823,285 12,842,428 25,643,570 Total Expenditures & Transfers Out 56,143,954$ 62,041,024$ 81,055,085$ CITY INDEBTEDNESS DEBT LIMIT Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county, municipality or other political subdivision to no more than 5% of the actual value of all taxable property within the corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2014 valuation currently applicable to the fiscal year 2015-16 is as follows: 2013 Actual Valuation of Property $4,950,557,795 Legal Debt Limit of 5% 0.05 Legal Debt Limit $247,527,890 Less: Total G.O. Debt (55,350,000) Less: TIF Revenue Debt (2,525,000) Less: Letters of Credit (UniverCity) (582,000) Less: Other legal indebtedness (TIF rebates) (13,506,152) Net Debt Limit $175,564,738 DIRECT DEBT General Obligation Debt Supported by Property Taxes and Tax Increment Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6/30/16 10/08B $17,005,000 Refunding 6/18 $3,055,000 1) 6/09C 6,685,000 City Improvements 6/19 2,210,000 8/10B 7,420,000 City Improvements 6/20 3,115,000 6/11A 7,925,000 City Improvements 6/21 3,940,000 6/11C 10,930,000 Refunding 6/21 6,235,000 6/12A 9,070,000 City Improvements 6/22 5,680,000 7/13A 7,230,000 City Improvements 6/23 5,750,000 6/14 11,390,000 City Improvements 6/24 8,575,000 6/15 7,785,000 City Improvements 6/25 7,090,000 6/16A 8,795,000 City Improvements 6/26 8,795,000 6/16B 610,000 City Improvements 6/17 610,000 Subtotal $55,055,000 1) City called Series 2008B with cash on August 1, 2016. General Obligation Debt Supported by Enterprise Funds Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6/30/16 6/14 $590,000 City Improvements 6/17 $295,000 Total General Obligation Debt Subject to Debt Limit: $55,350,000 Annual Fiscal Year General Obligation Debt Service Payments Total Outstanding Principal & Fiscal Year Principal Interest 2016-17 $10,425,000 $11,774,450 2017-18 9,340,000 10,455,481 2018-19 7,985,000 8,857,031 2019-20 7,410,000 8,073,144 2020-21 6,150,000 6,609,779 2021-22 4,585,000 4,888,400 2022-23 3,665,000 3,873,900 2023-24 2,865,000 2,985,950 2024-25 1,890,000 1,948,500 2025-26 1,035,000 1,055,700 Total $55,350,000 $60,522,335 OTHER DEBT The City has revenue debt payable solely from the net revenues of the City’s Urban Renewal Areas as follows: Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6/30/16 11/12D $2,655,000 Developer Grant 6/32 $2,525,000 The City has revenue debt payable solely from the net revenues of the Municipal Parking System as follows: Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6/30/16 11/09F $9,110,000 Parking 7/17 $0 1) 4/17 15,400,000 Parking 6/37 15,400,000 2) Total $15,400,000 1) The City has defeased $6,045,000 of the Series 2009F Bonds maturing 2016 through 2024. Funds are being held in escrow until the July 1, 2017 call date. 2) The City has entered into a Lease Purchase Agreement in connection with the construction of a parking garage anticipated to be completed in April 2017. The commencement date of the Lease Purchase Agreement is anticipated in April 2017. The City has revenue debt payable solely from the net revenues of the Municipal Water System as follows: Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6/30/16 10/08D $7,115,000 Water Refunding 7/16 $425,000 1) 5/09B 9,750,000 Water Refunding 7/25 6,870,000 6/12C 4,950,000 Water Refunding 7/22 3,565,000 6/16D 3,650,000 Water Refunding 7/24 3,650,000 Total $14,510,000 1) The 2017 through 2024 maturities in the amount of $4,085,000 were current refunded by the Water Revenue Refunding Capital Loan Notes, Series 2016D on July 1, 2016. The City has revenue debt payable solely from the net revenues of the Municipal Sewer System as follows: Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6/30/16 10/08C $24,280,000 Sewer Refunding 7/16 $1,945,000 1) 5/09A 8,660,000 Sewer Refunding 7/25 6,275,000 4/10A 15,080,000 Sewer Refunding 7/20 6,330,000 6/16C 9,360,000 Sewer Refunding 7/21 9,360,000 Total $23,910,000 1) The 2017 through 2022 maturities in the amount of $10,515,000 were current refunded by the Sewer Revenue Refunding Capital Loan Notes, Series 2016C on July 1, 2016. INDIRECT GENERAL OBLIGATION DEBT 1/1/2015 Percent City’s Taxing District Taxable Valuation1) In City G.O. Debt2) Proportionate Share Johnson County $8,042,302,645 42.54%3) $8,490,000 $3,611,646 Iowa City CSD 5,978,490,538 57.23%3) 14,150,000 8,098,045 Clear Creek-Amana CSD 129,160,108 0.04% 61,465,000 24,586 Kirkwood Comm. College 24,144,197,855 14.17%3) 129,981,492 18,418,377 City’s share of total overlapping debt $30,152,654 1) Taxable Valuation excludes military exemption and includes Ag. Land & Buildings, Taxable TIF Increment and all Utilities. 2) Includes general obligation bonds, PPEL notes, certificates of participation and new jobs training certificates. 3) Includes city-exempt Ag TIF Increment valuation in the amount of $15,839. DEBT RATIOS Debt/Actual Market Value Debt/67,862 G.O. Debt ($5,350,243,693)1) Population2) Total General Obligation Debt $55,350,000 1.03% $815.63 Less G.O. Debt Service Paid by Enterprise Funds3) (295,000) Net G.O. Debt Paid by Taxes and Tax Increment $55,055,000 1.03% $811.28 TIF Revenue Debt $2,525,000 0.05% $37.21 City’s share of total overlapping debt $30,152,654 0.56% $444.32 1) Based on the City’s 1/1/2015 100% Actual Valuation; includes Ag Land, Ag Buildings, all Utilities and TIF Increment. 2) Population based on the City’s 2010 U.S. Census. 3) G.O. debt abated by Water Revenues. TAX RATES FY2011-12 FY2012-13 FY2013-14 FY2014-15 FY2015-16 $/$1,000 $/$1,000 $/$1,000 $/$1,000 $/$1,000 Johnson County 6.98984 6.74909 6.73712 6.74168 6.90337 City of Iowa City 17.84150 17.26864 16.80522 16.70520 16.65096 Iowa City CSD 14.59055 14.07327 13.68792 13.69999 13.86773 Clear Creek-Amana CSD (Clear Creek) 15.54876 15.31063 15.31055 15.06516 15.62084 Kirkwood Comm. College 0.99870 1.07888 1.06473 1.05754 1.06125 City Assessor 0.24632 0.24453 0.25873 0.23866 0.24325 County Ag. Extension 0.08358 0.08146 0.08160 0.08119 0.08129 State of Iowa 0.00320 0.00320 0.00330 0.00330 0.00330 Total Tax Rate - City Resident: Iowa City CSD 40.75369 39.49917 38.63862 38.52756 38.81115 Clear Creek-Amana CSD (Clear Creek) 41.71190 40.73653 40.26125 39.89273 40.56426 LEVY LIMITS A city’s general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27 per $1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384, Division I). Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are limited special purpose levies which may be certified outside of the above described levy limits (Code of Iowa, Section 384.12). The amount of the City general fund levy subject to the $8.10 limitation is $8.10 for Fiscal Year 2015-16. The City does levy costs for operation and maintenance of publicly owned Transit, tort liability and other insurance, support of the public library, police and fire retirement, FICA and IPERS and other employee benefits expenses in addition to the $8.10 general fund limit as authorized by law. In addition, the City has not established an emergency fund levy for Fiscal Year 2015-16. Debt service levies are not limited. CITY FUNDS ON HAND (Cash and Investments as of June 30, 2016, in thousands) City Operating Funds $146,429 City Restricted Funds 69,758 Total $216,187 Collection Total Tax Current Tax Delinquent Tax Total Tax Year Levied Collections Collections1 Collections 2007 39,094 38,947 99.6 13 38,960 99.7 2008 39,973 39,768 99.5 70 39,838 99.7 2009 43,168 43,118 99.9 18 43,136 99.9 2010 45,393 45,318 99.8 17 45,335 99.9 2011 47,789 47,826 100.1 8 47,834 100.1 2012 49,595 49,543 99.9 1 49,544 99.9 2013 50,407 50,139 99.5 3 50,142 99.5 2014 50,307 49,835 99.1 1 49,836 99.1 2015 51,609 51,292 99.4 3 51,295 99.4 2016 52,034 52,074 100.1 - 52,074 100.1 Source: Certificate of City Taxes and Johnson County Treasurer's Office Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in excess of the Total Tax Levied. 1 Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from Johnson County Treasurer by levy year. Levy a Percent of Collected Levy CITY OF IOWA CITY, IOWA LEVIES AND TAX COLLECTIONS Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Percent of Total as Finance and Operating Report For the City of Iowa City, Iowa Pursuant to Securities and Exchange Commission Rule 15c2-12 Through the Fiscal Year Ended June 30, 2016 Financial and Operating Data Water System Revenue Sewer System Revenue Parking System Revenue and Urban Renewal Area Revenue To the extent not included in the City’s Financial Statements, all information the City of Iowa City has agreed to provide in its annual reports, as it relates to its outstanding Water System Revenue, Sewer System Revenue, and Parking System Revenue debt, is included in this report. Attached is additional Water System, Sewer System, and Parking System information as required to be submitted under previous disclosure undertakings of the City. Revenue Bond Activity Bond debt activity for business-type activities for the year ended June 30, 2016, was as follows: As of June 30, 2016, the following unmatured revenue bond issues are outstanding: Wastewater Taxable Urban Treatment Water Renewal Original issue amount $ 57,380,000 $ 25,465,000 $ 2,655,000 Interest rates 3.0% to 5.0% 1.5% to 5.0% 1.0% to 3.9% Annual maturities $ 505,000 to $ 380,000 to $ 130,000 to $ 2,010,000 $ 835,000 $ 200,000 Amount outstanding $ 23,910,000 $ 14,510,000 $ 2,525,000 The City of Iowa City defeased the remaining $6,605,000 of its 2009 parking revenue bonds on November 12, 2014 by prepaying all remaining outstanding bonds and interest from cash on hand. The total defeased outstanding as of June 30, 2016 is $6,045,000. The total amount of interest that was paid was $574,186. Liabilities for the defeased bonds are not included in the City’s financial statements. On June 16, 2016, the City issued $9,360,000 of sewer revenue bonds for a current refunding of $10,515,000 of sewer revenue bonds on July 1, 2016. As a result, the sewer 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 $1,679,360 in future debt service payments and an economic gain of $1,133,595. On June 16, 2016, the City issued $3,650,000 of water revenue bonds for a current refunding of $4,085,000 of water revenue bonds on July 1, 2016. As a result, the water revenue bonds from that issue are considered to be defeased and the liability has been removed from the financial statements. The refunding was undertaken to reduce total future debt service payments. The result of the transaction is a reduction of $640,265 in future debt service payments and an economic gain of $485,963. Due Within July 1, 2015 Issues Retirements June 30, 2016 One Year Business-type activities: General obligation bonds 590,000$ -$ 295,000$ 295,000$ 295,000$ Less: Unamortized Discounts - - - - - Total general obligation bonds 590,000 - 295,000 295,000 295,000 Revenue bonds 44,950,000 13,010,000 19,540,000 38,420,000 5,090,000 Plus: Unamortized Premium 616,903 1,144,715 229,957 1,531,661 229,957 Total revenue bonds 45,566,903 14,154,715 19,769,957 39,951,661 5,319,957 46,156,903$ 14,154,715$ 20,064,957$ 40,246,661$ 5,614,957$ Revenue bond debt service requirements to maturity are as follows: The revenue bond ordinances required that wastewater treatment, water revenues, and urban renewal tax revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts are as follows: Account Amount (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Amount required to be deposited in the Revenue Bond and Reserve Interest Reserve until the reserve fund equals: Water Revenue and Taxable Urban Renewal Revenue bonds – maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue bonds – 125% of the average principal and interest payments over the life of all the Wastewater Revenue bonds. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $2,000,000 for Wastewater Revenue bonds and $5,000 per month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. In fiscal year ended June 30, 2016, the Wastewater Treatment Fund had net revenue of $6,168,000 and the amount of principal and interest due was $4,695,000. In fiscal year ended June 30, 2016, the Water Fund had net revenues of $3,936,000 and the amount of principal and interest due was $2,294,000. Fiscal Year Ending June 30 Principal Interest Principal Interest 2017 130,000$ 74,035$ 5,090,000$ 1,503,102$ 2018 135,000 72,345 5,035,000 1,214,990 2019 135,000 70,185 5,250,000 1,016,303 2020 140,000 67,485 5,460,000 806,453 2021 140,000 64,545 5,360,000 592,246 2022-2026 760,000 267,955 12,225,000 1,050,416 2027-2031 885,000 139,280 - - 2032-2036 200,000 7,800 - - Total 2,525,000$ 763,630$ 38,420,000$ 6,183,510$ Governmental Activities Business-type Activities Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2016, are comprised of the following issues: (1) This bond issue refunded the April 1998, March 1999, and July 2000 General Obligation Bonds. (2) This bond issue refunded the May 2002 General Obligation Bonds. (3) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (4) This bond issue refunded the March 1996, May 1997, and January 1999 Wastewater Revenue Bonds. (5) This bond issue refunded the October 2000 Wastewater Revenue Bonds. (6) This bond issue refunded the December 2001 and April 2002 Wastewater Revenue Bonds. (7) This bond issue refunded the October 2008 Wastewater Revenue Bond. (8) This bond issue refunded the May 1999 Water Revenue Bonds. (9) This bond issue refunded the December 2000 Water Revenue Bonds. (10) This bond issue refunded the October 2002 Water Revenue Bonds. (11) This bond issue refunded the October 2008 Water Revenue Bonds. Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2016 General Obligation Bonds: Refunded Multi-Purpose (1) Oct. 2008 17,005,000 3.0 - 3.75 6/18 3,055,000$ Multi-Purpose June 2009 6,685,000 2.5 - 4.0 6/19 2,210,000 Multi-Purpose Aug. 2010 7,420,000 2.0 - 2.75 6/20 3,115,000 Multi-Purpose June 2011 7,925,000 2.0 - 3.625 6/21 3,940,000 Refunded Multi-Purpose and Library Construction (2)June 2011 10,930,000 2.0 - 3.625 6/21 6,235,000 Multi-Purpose June 2012 9,070,000 2.0 - 2.25 6/22 5,680,000 Multi-Purpose July 2013 7,230,000 1.0 - 2.0 6/23 5,750,000 Refunded Multi-Purpose (3) June 2014 11,980,000 2.0 - 3.0 6/24 8,870,000 Multi-Purpose June 2015 7,785,000 2.0 - 2.25 6/25 7,090,000 Multi-Purpose June 2016 8,795,000 2.0 - 3.0 6/26 8,795,000 Multi-Purpose June 2016 610,000 2.0 6/17 610,000 Total General Obligation Bonds 55,350,000$ Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2016 Revenue Bonds: Refunded Wastewater Treatment Bonds (4)Oct. 2008 24,280,000 3.0 - 5.0 7/22 1,945,000$ Refunded Wastewater Treatment Bonds (5)May 2009 8,660,000 3.5 - 5.0 7/25 6,275,000 Refunded Wastewater Treatment Bonds (6)Apr. 2010 15,080,000 3.0 - 4.0 7/20 6,330,000 Refunded Wastewater Treatment Bonds (7)June 2016 9,360,000 3.0 - 4.0 7/21 9,360,000 Refunded Water Bonds (8)Oct. 2008 7,115,000 3.0 - 4.375 7/24 425,000 Refunded Water Bonds (9)May 2009 9,750,000 4.0 - 4.5 7/25 6,870,000 Refunded Water Bonds (10) June 2012 4,950,000 1.5 - 2.1 7/22 3,565,000 Refunded Water Bonds (11) June 2016 3,650,000 1.5 - 5.0 7/24 3,650,000 Taxable Urban Renewal Nov. 2012 2,655,000 1.0 - 3.9 6/32 2,525,000 Total Revenue Bonds 40,945,000 96,295,000$ Fiscal Year Net Revenue Annual Debt Service2 Ended Available for Ratio of June 30 Revenue Expenses1 Debt Service Principal Interest Total Coverage Parking Revenue3 2007 5,035 2,973 2,062 335 626 961 2.15 2008 4,995 2,454 2,541 355 606 961 2.64 2009 5,630 3,024 2,606 370 584 954 2.73 20106 5,509 3,149 2,360 390 504 894 2.64 2011 5,389 2,920 2,469 420 391 811 3.04 2012 4,945 3,034 1,911 500 339 839 2.28 2013 5,122 3,549 1,573 515 324 839 1.87 2014 5,365 2,969 2,396 530 308 838 2.86 20157 5,620 3,828 1,792 540 254 794 2.26 2016 - - - - - - - Wastewater Treatment Revenue4 2007 13,708 4,236 9,472 3,905 3,234 7,139 1.33 20086 13,332 4,581 8,751 4,105 3,071 7,176 1.22 20096 13,462 5,202 8,260 4,260 2,813 7,073 1.17 20106 13,174 5,050 8,124 4,205 2,307 6,512 1.25 20116 13,281 5,477 7,804 1,840 2,054 3,894 2.00 2012 13,175 5,663 7,512 4,615 1,693 6,308 1.19 2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24 2014 12,835 5,708 7,127 3,250 1,428 4,678 1.52 2015 12,620 6,574 6,046 3,370 1,305 4,675 1.29 2016 12,681 6,513 6,168 3,520 1,175 4,695 1.31 Water Revenue5 2007 9,220 5,356 3,864 915 1,268 2,183 1.77 20086 9,258 5,348 3,910 955 1,229 2,184 1.79 20096 8,833 5,726 3,107 995 1,171 2,166 1.43 20106 8,336 5,153 3,183 680 1,055 1,735 1.83 2011 8,354 5,464 2,890 1,110 902 2,012 1.44 20126 8,649 5,653 2,996 1,200 861 2,061 1.45 20136 9,342 6,348 2,994 845 758 1,603 1.87 20146 8,613 5,818 2,795 1,335 650 1,985 1.41 2015 8,715 5,632 3,083 1,380 610 1,990 1.55 2016 9,323 5,387 3,936 1,715 579 2,294 1.72 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. 7 Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service. CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) 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 32.0 (FTE) employees who work in the Water Division. This division serves about 74,200 people and has about 25,200 customer water accounts. The average daily use for fiscal year 2016 was approximately 5.46 million gallons per day (MGD). A peak flow of over 8.6 MGD was experienced during the summer of 2012. Water Sources: The primary source of water for the City is the alluvial aquifer collector wells along the Iowa River. Four collector wells can provide approximately 10.5 MGD. Additional sources include two Jordan aquifer wells which can provide 2.0 MGD; three Silurian aquifer wells which can provide 1.0 MGD; a sand pit that can provide 1.0 MGD; a river intake that can provide 3.0 MGD; for a total of approximately 16.7 MGD maximum capacity. Water Treatment Processes: The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins Drive. The plant is a surface water plant design that includes aeration, lime softening (coagulation/flocculation/sedimentation), and granular activated carbon filtration processes with fluoridation and free chlorination. The Grade IV Water Treatment Facility houses an operations team that performs over 230 water quality tests per day in- house and collects regulatory samples for testing at the University Hygienic Laboratory. This testing ensures that Iowa City’s drinking water meets all IDNR and EPA Safe Drinking Water Act Standards. Distribution System: The water flows through approximately 273 miles of water mains and includes over 22,000 service connections. The distribution piping consists of cast iron, ductile iron and plastic 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 3,599 public and private hydrants located throughout the community. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City’s bad debt write-offs have been less than 0.2% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2015. Water Service Charge Minimums (includes up to the first 100 cubic feet (c.f.)) Meter Size Meter Size (Inches) Charge (Inches) Charge 5/8” $7.07 2” $24.41 3/4” 7.72 3” 45.11 1” 9.10 4” 78.69 1 1/2” 18.15 6” 158.33 Monthly Usage in excess of 100 cubic feet (c.f.) 101 – 3,000 $3.30 per 100 c.f. 3,001 and over $2.37 per 100 c.f. Single Purpose Meter Charges First 100 (c.f) Minimum Monthly Charge Usage in excess of 100 cubic feet (c.f.) $3.30 per 100 c.f. Changes in water rates over the last ten fiscal years: 2007 - 5% 2008 0% 2009 0% 2010 0% 2011 0% 2012 0% 2013 0% 2014 0% 2015 5% 2016 5% Water System Customers by Classification: 1) Classification FY2012 FY2013 FY2014 FY2015 3) FY2016 Residential 24,086 24,442 24,790 23,089 23,638 Commercial 1,489 1,491 1,491 1,409 1,415 Industrial 15 15 15 14 14 Other 2) 200 204 202 135 131 Total Meters 25,790 26,152 26,498 24,647 25,198 1) Meter information above represents the number of meters customers billed as of the end of the fiscal year. 2) Other meters consist of rural, schools, government, churches, and City meters. 3) Implemented a new utility billing system during Fiscal Year 2015 which consolidated customers with multiple meters. Financial Information: The following table summarizes the results of operations for the Water System for the fiscal years ended June 30, 2016, 2015, and 2014. 2016 2015 2014 Operating Revenues: Charges for services 9,134 $ 8,527 $ 8,443 $ Miscellaneous 17 13 16 Total operating revenues 9,151 8,540 8,459 Operating Expenses: Personal services 3,115 2,495 2,692 Commodities 578 1,121 1,199 Services and charges 1,694 2,016 1,927 5,387 5,632 5,818 Depreciation 2,295 2,250 2,181 Total operating expenses 7,682 7,882 7,999 Operating income 1,469 658 460 Nonoperating Revenues (Expenses): Gain (Loss) on disposal of capital assets 8 (17) 11 Operating Grants - 2 6 Interest income 172 175 154 Interest expense (528) (608) (682) Total nonoperating revenues (expenses) (348) (448) (511) Income before capital contributions and transfers 1,121 210 (51) Capital contributions 674 581 2,049 Transfers in 985 348 990 Transfers out (720) (691) (117) Change in net assets 2,060 448 2,871 Net Position, Beginning*65,103 64,655 63,274 Net Position, Ending 67,163 $ 65,103 $ 66,145 $ *The 2015 beginning balance was restated from implementation of GASB 68. (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS WATER SYSTEM STATEMENT OF REVENUES, EXPENSES Last Three Fiscal Years The following table summarizes the budget and actual figures for the Water System for the fiscal year ended June 30, 2016 and the budget for the fiscal year ended June 30, 2017 on a modified accrual basis. The following table summarizes the Water System funds on hand for the fiscal years ended June 30, 2016, 2015, and 2014. FY17 Actual Budget Percentage Budget Charges for services 9,133 $ 9,265 $ 98.58% 8,926 $ Interest income 172 130 132.31%171 Miscellaneous 26 17 152.94%15 Bond sales 4,017 - 0.00%- Total Receipts 13,348 $ 9,412 $ 141.82% 9,112 $ Personal services 2,497 $ 2,752 $ 90.73% 2,777 $ Commodities 570 701 81.31%661 Services and charges 2,389 2,606 91.67% 2,624 Capital outlay 468 2,081 22.49% 1,475 Transfer to capital project funds 706 846 83.45%150 Debt service payments 2,335 2,294 101.79% 2,289 Total Disbursements 8,965 $ 11,280 $ 79.48% 9,976 $ WATER SYSTEM BUDGET AND ACTUALS (MODIFIED ACCRUAL BASIS) For the Year Ended June 30, 2016 (amounts expressed in thousands) 2016 2015 2014 Operating Funds 8,481 $ 8,670 $ 8,939 $ Restricted and Designated Funds 5,026 4,964 4,801 Total Funds on Hand 13,507 $ 13,634 $ 13,740 $ WATER SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) Fiscal Water Sales Water System Year Cubic Feet Sold Charges 2007 261,072,632 8,414,310 2008 249,361,929 7,976,536 2009 234,804,167 7,497,903 2010 234,342,825 7,568,378 2011 236,838,370 7,661,898 2012 246,618,257 7,953,738 2013 254,616,773 8,194,467 2014 239,790,719 7,778,364 2015 240,423,612 8,161,522 2016 255,524,943 8,758,683 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL WATER CHARGES Last Ten Fiscal Years Customer Name Charges Rank Percentage Charges Rank Percentage Proctor & Gamble 635,147$ 1 7.55 %673,690$ 1 7.69 % Vets 138,495 2 1.65 104,250 2 1.19 Mercy Hospital 75,140 3 0.89 64,349 3 0.73 Campus Apartments 38,298 5 0.46 61,112 4 0.70 Mark IV Apts 45,574 8 0.54 53,473 5 0.61 Dolphin Lake Point (Rus Properties Mngmt)62,170 6 0.74 50,139 6 0.57 University of Iowa (Mayflower Apartments)- -N/A 46,061 7 0.53 Iowa City Community School District --N/A 43,465 8 0.50 CCAL 100 Hawk Ridge Drive --N/A 39,301 9 0.45 Oaknoll Retirement Residence --N/A 37,955 10 0.43 Pollution Control 68,315 4 0.81 --N/A Roberts 54,615 7 0.65 --N/A Lear Corp 44,200 9 0.53 --N/A Seville Apartments 35,448 10 0.42 --N/A 1,197,402$ 14.23 %1,173,795$ 13.40 % Total Water System Charges 8,414,310$ 8,758,683$ Sources: City of Iowa City Revenue Division 20162007 CITY OF IOWA CITY, IOWA PRINCIPAL WATER SYSTEM CUSTOMERS Current Year and Nine Years Ago Sewer System The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 300 miles of sanitary sewers, 18 sanitary sewer lift stations, and a wastewater treatment plant. There are a total of 24.65 (FTE) employees who work in the Wastewater Division. This division serves about 74,200 people and has about 25,100 customers. The system has 3 significant industrial users, 2 non-categorical and 1 categorical. The average daily treatment plant flow for fiscal year 2016 was 10.48 million gallons per day (MGD). The Wastewater Plant was constructed in 1990. The plant was upgraded in 2002 and underwent another expansion in 2014. The City conducts all wastewater treatment at the Wastewater Treatment Plant and controls operations of the system remotely through supervisory control and data acquisition (SCADA) computer systems. The wastewater treatment system design has a maximum daily treatment capacity of 43.30 MGD. The Wastewater Treatment Division is currently in compliance with federal clean water standards. Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer, water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice is mailed which allows 25 calendar days before service is disconnected. The City’s bad debt write-offs have been less than 0.2% of gross revenues for the past three years. Rates: The following rates and charges were effective July 1, 2015. 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: 2007 8% 2008 0% 2009 5% 2010 0% 2011 0% 2012 0% 2013 0% 2014 0% 2015 0% 2016 0% Number of Sewer System Customers: Number of Sewer Fiscal Year System Customers 2012 23,529 2013 24,059 2014 24,389 2015 24,533 2016 25,085 Financial Information: The following table summarizes the results of operations for the Sewer System for the fiscal years ended June 30, 2016, 2015, and 2014. 2016 2015 2014 Operating Revenues: Charges for services 12,266 $ 12,189 $ 12,559 $ Miscellaneous 94 126 75 Total operating revenues 12,360 12,315 12,634 Operating Expenses: Personal services 2,808 2,136 2,001 Commodities 1,421 1,473 1,006 Services and charges 2,284 2,965 2,701 6,513 6,574 5,708 Depreciation 4,484 4,497 4,036 Total operating expenses 10,997 11,071 9,744 Operating income 1,363 1,244 2,890 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets - 1 (10,062) Operating grants - 21 62 Interest income 321 305 200 Interest expense (927) (1,161) (1,284) Total nonoperating revenues (expenses) (606) (834) (11,084) Income before capital contributions and transfers 757 410 (8,194) Capital contributions 3,839 1,370 7,422 Transfers in 195 239 26 Transfers out (522) (190) (254) Change in net assets 4,269 1,829 (1,000) Net Position, Beginning*130,783 128,954 131,278 Net Position, Ending 135,052 $ 130,783 $ 130,278 $ *The 2015 beginning balance was restated from implementation of GASB 68. (amounts expressed in thousands) AND CHANGES IN FUND NET ASSETS SEWER SYSTEM STATEMENT OF REVENUES, EXPENSES Last Three Fiscal Years The following table summarizes the budget and actual figures for the Sewer System for the fiscal year ended June 30, 2016 and the budget for the fiscal year ended June 30, 2017 on a modified accrual basis. The following table summarizes the Sewer System funds on hand for the fiscal years ended June 30, 2016, 2015, and 2014. FY17 Actual Budget Percentage Budget Charges for services 12,266 $ 12,559 $ 97.67% 12,204 $ Interest income 321 331 96.98%291 Miscellaneous 94 75 125.33%94 Grants 1,163 366 317.76%391 Bond sales 10,101 - 0.00% 2,025 Total Receipts 23,945 $ 13,331 $ 179.62% 15,005 $ Personal services 2,194 $ 2,240 $ 97.95% 2,265 $ Commodities 812 625 129.92%701 Services and charges 3,113 3,149 98.86% 3,049 Capital outlay 1,733 7,679 22.57% 1,060 Transfer to capital project funds 500 500 100.00% 2,000 Debt service payments 4,752 4,695 101.21% 4,660 Total Disbursements 13,104 $ 18,888 $ 69.38% 13,735 $ SEWER SYSTEM BUDGET AND ACTUALS (MODIFIED ACCRUAL BASIS) For the Year Ended June 30, 2016 (amounts expressed in thousands) 2016 2015 2014 Operating Funds 18,210 $ 16,643 $ 17,417 $ Restricted and Designated Funds 9,460 9,861 9,975 Total Funds on Hand 27,670 $ 26,504 $ 27,392 $ SEWER SYSTEM FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Charges 2007 315,199,203 11,084,369 2008 285,492,596 12,221,769 2009 276,455,246 12,499,949 2010 265,375,857 12,541,905 2011 280,303,237 12,748,695 2012 282,134,840 12,784,321 2013 285,472,392 12,883,641 2014 269,494,125 12,382,031 2015 266,830,947 12,278,153 2016 270,547,701 12,022,203 Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA SALES HISTORY AND TOTAL SEWER CHARGES Last Ten Fiscal Years Customer Name Charges Rank Percentage Charges Rank Percentage University of Iowa 2,173,296$ 1 19.61 %1,900,317$ 1 15.81 % Proctor & Gamble 1,237,851 2 11.17 893,069 2 7.43 Iowa City Landfill 57,572 10 0.52 219,432 3 1.83 Vets Hosiptal 193,077 3 1.74 119,193 4 0.99 Mercy Hospital 124,590 5 1.12 102,693 5 0.85 Dolphin Lake Point (Rus Properties Mngmt)102,653 6 0.93 76,609 6 0.64 University of Iowa Mayflower 68,318 8 0.62 73,827 7 0.61 Campus Apartments 90,091 7 0.81 72,228 8 0.60 CCAL 100 Hawk Ridge Drive - -N/A 68,909 9 0.57 Mark IV Apts - -N/A 58,512 10 0.49 Roberts Dairy 130,549 4 1.18 --N/A Sheraton Hotel 60,021 9 0.54 --N/A 4,238,018$ 38.23 %3,584,789$ 29.82 % Total Sewer System Charges 11,084,369$ 12,022,203$ Sources: City of Iowa City Revenue Department CITY OF IOWA CITY, IOWA PRINCIPAL SEWER SYSTEM CUSTOMERS Current Year and Nine Years Ago 20162007 Parking System The Parking System currently consists of approximately 4,031 parking spaces located at various parking facilities in the central business district of the City. The Parking Division of the Transportation Services Department oversees the operation of parking garages, parking lots, and on-street (metered) parking. Parking Division enforces parking regulation in the central business district, while the Police Department enforces parking regulations in residential areas. Recognizing that there is a high demand for parking in downtown Iowa City, Parking Services promotes turnover of on-street metered parking spaces in the core of the downtown. Customers with longer-term needs are encouraged to use the garages or on streets in outlying areas. There are a total of 23.13 (FTE) employees who work in the Parking Division. Parking System Utilization, Demand and Other Considerations: The City tracks Parking System utilization by the hour in each of the cashiered facilities. During peak hours, the occupancy rate regularly runs between 85% to 98% depending on the time of year and the time of day. Peak hours for the Parking System are 10:00 am through 3:00 pm with high occupancy rates regularly maintained through 5:30 pm daily. In addition to hourly parking, the Parking System offers monthly permit parking. The Parking System currently has 1,360 permit holders. The largest customer for the monthly permit parking is the University of Iowa with 615 permits. There are currently over 1,100 people on the Parking System's waiting lists for monthly permit parking. In addition to monthly and permit parking, the Parking System has parking space contracts with the Sheraton Hotel in the amount of $8,000.00 per month and with the Hotel Vetro in the amount of $2,000.00 per month. The City regularly evaluates parking demand. As development has continued to move south of Burlington Street and the central business district, the need for additional spaces in this area has increased. The Applied Real Estate Analysis ("AREA"), in conjunction with Desman Associates, estimates that there is demand for 600 additional parking spaces in downtown Iowa City. A recent update of demand based on upcoming developments shows a need of 650 additional spaces, an increase of 50 from the previous study. The underlying economic growth and employment base of the City continues to contribute to increased demand. The Harrison Street Parking Facility located on the 100 block of East Harrison Street is scheduled to open April 2017. This facility will have 600 spaces for permit and visitor parking. Parking System Rates and Charges: Rates for the Parking System are set by the City Council. Parking System rates are reviewed annually. The rates vary by facility and the hourly and monthly rates and charges as approved by the City Council are listed below by facility. These rates include the most recent hourly rate adjustments that were approved by the City Council on June 4, 2013 and became effective July 1, 2013 and the monthly permit rate adjustments that were approved by the City Council on June 2, 2009 and became effective July 1, 2009. Parking Facilities: The Parking System consists of 2 cashiered garages and 2 unattended garages, as well as, various parking lots and on-street metered parking in the Central Business District. The City completes regular visual inspections of the parking garages to evaluate their current appearance and general condition. The garages are visually inspected for the condition of the main structural elements (columns, girders, beams), parking decks, expansion and control joints, and their coating systems. Based on the most recent inspections, all of the Parking System's facilities are in excellent condition. All garages will continue to receive routine inspections and maintenance. A description of each parking facility, their locations, access, the number of spaces, monthly permits, and current rates are as follows: Capitol Street Garage Constructed 1980 Address 220 S. Capitol Street Description Located on a parcel confined by Burlington Street to the south, Capitol Street to the west, Clinton Street to the east and the Old Capitol Town Center to the north. Access This is a cashiered facility with two entry lanes off of Clinton Street; two entry lanes off of Capitol Street; and four exit lanes onto Capitol Street. Spaces 875 Monthly Permits 220 Rates Hourly $1.00 per hour, with first hour free Monthly $80.00 per month Changes in Capitol Street Garage rates over the last ten fiscal years: Hourly Monthly 2007 25% 7% 2008 0% 0% 2009 0% 0% 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 Dubuque Street Garage Constructed 1980 Address 220 S. Dubuque Street Description Located on a parcel confined by Burlington Street to the south, Dubuque Street to the west, Linn Street to the east and the Sheraton Hotel to the north. Access This is a cashiered facility with two entry lanes off of Dubuque Street; one entry lanes off of Linn Street; and two exit lanes onto Dubuque Street. Spaces 625 Monthly Permits 310 Rates Hourly $1.00 per hour, with first hour free Monthly $80.00 per month Changes in Dubuque Street Garage rates over the last ten fiscal years: Hourly Monthly 2007 25% 8% 2008 0% 0% 2009 0% 0% 2010 0% 23% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 Chauncey Swan Garage Constructed 1993 Address 415 E. Washington Street Description Located on a parcel confined by College Street to the south, Van Buren Street to the east, Gilbert Street to the west and Washington Street to the north. Access This is an automated facility with one entry/exit lane off of College Street; one entry/exit lane off of Washington Street; and one entry/exit lane through the Recreation Center parking lot onto Burlington Street. Spaces 475 Monthly Permits 380 Rates Hourly $0.75 per hour Monthly $80.00 per month Changes in Chauncey Swan Garage rates over the last ten fiscal years: Hourly Monthly 2007 20% 9% 2008 0% 0% 2009 0% 0% 2010 0% 17% 2011 0% 14% 2012 0% 0% 2013 0% 0% 2014 25% 0% 2015 0% 0% 2016 0% 0% Tower Place Garage Constructed 2001 Address 335 E. Iowa Avenue Description Located on a parcel confined by Iowa City Senior Center to the south, Gilbert Street to the east, Linn Street to the west and Iowa Avenue to the north. Access This is a cashiered facility with two entry lanes off of Iowa Avenue; three exit lanes onto Iowa Avenue; and secured permit-only entry and exit off of Gilbert Street. Spaces 510 Monthly Permits 210 Rates Hourly $1.00 per hour, with first hour free Monthly $80.00 per month Changes in Tower Place Garage rates over the last ten fiscal years: Hourly Monthly 2007 25% 7% 2008 0% 0% 2009 0% 0% 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 On-Street Parking Meters: The City operates short-term meters (1-2 hours) concentrated in the core of the downtown. These meters are intended for shopper's use. Each parking meter dial states the maximum time. Longer term meters become more common away from the core downtown area. Meters 1,174 Rates Hourly $0.75 - $1.50 per hour based on proximity to the central business district and usage. Parking Lots: The City operates seven parking lots in the Central Business District. They consist of a mix of permit spaces and metered spaces. Spaces 371 Monthly Permits 150 Rates Hourly $0.75 - $1.50 per hour based on proximity to the central business district and usage. Monthly $60.00 per month Moped Parking: FY12 saw the implementation of a parking permit program for mopeds, scooters, and motorcycles. Spaces were designated throughout the Central Business District to accommodate the use of mopeds and scooters while also removing them from parking in bicycle racks. Spaces 150 Total Annual Permits 735 Rates Annual $90.00 per year Financial Information: The following table summarizes the results of operations for the Parking System for the fiscal years ended June 30, 2016, 2015, and 2014. 2016 2015 2014 Operating Revenues: Charges for services 5,438 $ 5,502 $ 5,294 $ Miscellaneous 40 82 26 Total operating revenues 5,478 5,584 5,320 Operating Expenses: Personal services 1,781 1,465 1,530 Commodities 578 106 141 Services and charges 1,304 2,257 1,298 3,663 3,828 2,969 Depreciation 808 798 800 Total operating expenses 4,471 4,626 3,769 Operating income 1,007 958 1,551 Nonoperating Revenues (Expenses): Gain (loss) on disposal of capital assets 2,450 - - Interest income 37 36 45 Interest expense - (77) (298) Total nonoperating revenues (expenses) 2,487 (41) (253) Income before capital contributions and transfers 3,494 917 1,298 Transfers in - - 19 Income before special item 3,494 917 766 Special item: Payment to refunded bond escrow - (574) - Change in net assets 3,494 343 1,317 Net Position, Beginning*17,737 17,394 16,960 Net Position, Ending 21,231 $ 17,737 $ 18,277 $ *The 2015 beginning balance was restated from implementation of GASB 68. STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Last Three Fiscal Years (amounts expressed in thousands) PARKING SYSTEM The following table summarizes the budget and actual figures for the Parking System for the fiscal year ended June 30, 2016 and the budget for the fiscal year ended June 30, 2017 on a modified accrual basis. The following table summarizes the Parking System funds on hand for the fiscal years ended June 30, 2016, 2015, and 2014. FY17 Actual Budget Percentage Budget Charges for services 5,438 $ 5,274 $ 103.11% 5,512 $ Interest income 37 28 132.14%35 Miscellaneous 40 27 148.15%79 Sale of assets 5,503 5,500 100.05%- Total Receipts 11,018 $ 10,829 $ 101.75% 5,626 $ Personal services 1,543 $ 1,708 $ 90.34% 1,612 $ Commodities 60 37 162.16%31 Services and charges 1,601 1,605 99.75% 1,739 Capital outlay 511 1,012 50.49%509 Interfund Loan Repayment 221 221 100.00%228 Total Disbursements 3,936 $ 4,583 $ 85.88% 4,119 $ PARKING SYSTEM BUDGET AND ACTUALS (MODIFIED ACCRUAL BASIS) For the Year Ended June 30, 2016 (amounts expressed in thousands) 2016 2015 2014 Operating Funds 10,944 $ 4,238 $ 5,674 $ Restricted and Designated Funds 387 386 1,921 Total Funds on Hand 11,331 $ 4,624 $ 7,595 $ FUNDS ON HAND (CASH AND INVESTMENTS) Last Three Fiscal Years (amounts expressed in thousands) PARKING SYSTEM Urban Renewal Area: CITY – UNIVERSITY PROJECT I The City, acting under the authority of Chapter 403 of the Code of Iowa, has established an urban renewal area designated as “City - University Project I Urban Renewal Area” (the “Urban Renewal Area”) designed to implement their comprehensive plan. Description of CITY – UNIVERSITY PROJECT I Urban Renewal Plan/Area On October 2, 1969, the Iowa City Council adopted Resolution No. 2157 approving the City - University Project I Urban Renewal Plan (Project No. IA R-14) which plan has been modified and amended from time to time (said plan, as amended, is hereinafter referred to as the “Urban Renewal Plan” or “Plan”). The Urban Renewal Area is located in the heart of City’s downtown. The northern edge of the original area consists of part of Washington Street with the western edge consisting of the eastern bank of the Iowa River. The southern edge consisted of a part of Court Street to the eastern edge which ran to Linn Street. In 2001, the original urban renewal area was expanded north to Iowa Ave, south to Prentiss Street and east to Gilbert Street. In 2012, the amended urban renewal area was extended south of the existing boundaries. In 2016, the amended urban renewal area was expanded to include a one block area bounded by Iowa Avenue on the north, Van Buren Street on the East, Washington Street on the South and Gilbert Street on the West. The original Urban Renewal Area is classified as a blighted area and does not have a sunset or expiration date. The 2001 amended urban renewal area has, at a minimum, a twenty year life and will expire after fiscal year 2023-24. The 2012 amended urban renewal area is classified as a blighted area and does not have a sunset or expiration date. The 2016 amended urban renewal area will expire, at a minimum, twenty years from the calendar year following the calendar year in which the City first certifies debt for the amended area. The objectives of the Plan called for the City to undertake a program for the clearance and reconstruction or rehabilitation to enhance and promote the economic development within the Urban Renewal Area. Through the implementation of the Plan, the City’s overall goal is to develop and redevelop the Urban Renewal Area; to stimulate through public action and commitments, private investment which creates employment and increases to the tax base within the City. In general, tax increment revenues from an Urban Renewal Area are determined annually by multiplying the aggregate of all local taxes, excluding the portion of the overall tax rate associated with debt service, physical plant and equipment and the instructional support program levies applicable to the taxable valuation of all property within the Urban Renewal Area, by the aggregate difference (“Tax Increment Valuation Available”) between the current taxable valuation and the original taxable valuation upon creation of the Urban Renewal Area. In general, the original taxable valuation reflects the valuation upon creation of the Urban Renewal Area (the “Frozen Base Valuation”). Johnson County (the “County”) collects the real estate taxes and distributes the Tax Increment Revenues to the City to use for repayment of the urban renewal revenue bonds. Tax Increment Revenues are generally distributed by the County to the City in the months of October and April of each calendar year. TOP TAXPAYERS LOCATED WITHIN URBAN RENEWAL AREA FY2016/17 Taxable % of Total Taxpayer Classification Valuation Taxable Valuations (1) MIDWESTONE BANK Financial Institution 12,902,535$ 3.76% RBD IOWA CITY LLC Sheraton Hotel 11,579,832 3.38% OC GROUP LC Old Capital Mall 8,968,986 2.62% PLAZA TOWERS LLC Residential & Comm. Condo Rentals 8,087,115 2.36% MOEN, MARC B Residential & Comm. Condo Rentals 7,491,452 2.18% FIRST NATIONAL BANK IOWA CITY Financial Institution 6,906,951 2.01% 100-500 LLC Residential Condo Rentals 6,795,112 1.98% ICF LLC Residential & Comm. Condo Rentals 6,660,466 1.94% CENTER CITY LLC Residential & Comm. Condo Rentals 6,414,733 1.87% COURT STREET APARTMENTS LLC Residential & Comm. Condo Rentals 6,037,026 1.76% Total 81,844,208$ 23.87% (1) The Total Taxable Valuation in the Urban Renewal Area for 1/1/2015 for fiscal year 2016-17 is $342,890,955. TAX INCREMENT TAX RATES FY2009-10 FY2010-11 FY2011-12 FY2012-13 FY2013-14 (1)FY2014-15 (1)FY2015-16 (1)FY2016-17 (1) Total City Tax Rate 40.59569 $ 40.91519 $ 40.75369 $ 39.49917 $ 38.63862$ 38.52756$ 38.81115$ 38.74878$ City Debt Service (4.21934) (4.43847) (4.64901) (4.44287) (4.02965) (4.12963) (3.92833) (3.82846) Iowa City CSD Debt Service (0.78674) (0.72701) (0.74900) (0.69729) (0.63500) (0.59831) (0.58612) (0.55017) Iowa City CSD PPEL (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) (1.67000) Iowa City CSD ISPL - - - - (0.12405) (0.08550) (0.08991) (0.07069) Kirkwood Debt Service (0.15908) (0.18561) (0.20000) (0.20000) (0.20000) (0.20000) (0.27005) (0.21003) Johnson County Debt Service (0.69680) (0.59533) (0.47402) (0.62813) (1.61074) (2.05908) (1.77673) (2.00829) Tax Increment Tax Rate 33.06373 $ 33.29877 $ 33.01166 $ 31.86088 $ 30.36918$ 29.78504$ 30.49001$ 30.41114$ Iowa City Downtown SSMID (2)2.00000 2.00000 2.00000 2.00000 2.00000 Tax Increment Tax Rate in SSMID 33.86088 $ 32.36918$ 31.78504$ 32.49001$ 32.41114$ (1) Any urban renewal area created after April 24, 2012, will not be eligible to receive the benefits of the local school district's instruction support levy (ISPL) tax revenues, unless the ISPL is necessary to pay principal and interest on the urban renewal debt and the school passes a special resolution approving such use of the revenues. Urban renewal debt incurred on or before April 24, 2012, may receive the benefit of ISPL tax revenues for fiscal year 2013-14 and following only if the ISPL is necessary to pay principal and interest on the urban renewal area debt and the city certifies to the school district by July 1 of each fiscal year, beginning July 1, 2013. The school district must then pay those amounts during that fiscal year (Nov. 1 and May 1) back to the City's urban renewal fund. (2) In fiscal year 2012-13, the City created a Self Supporting Municipal Improvement District (SSMID) within a portion of the Urban Renewal Area. The tax levy for the SSMID increases the tax increment rate but is only applied to certain properties when the County is apportioning the tax increment revenue request. HISTORICAL AND PROJECTED TAXABLE VALUATIONS WITHIN THE URBAN RENEWAL AREA Taxable Total Taxable Taxable New Taxable New Taxable Valuation Taxable Assessment Fiscal Taxable Value Valuation Valuation Valuation Available for Valuation Date Year Value (1)Frozen Base (2)Available Park @ 201 Chauncy Certification Certified 1/1/2010 FY 2012 195,540,284 89,677,074 105,863,210 0 0 105,863,210 0 1/1/2011 FY 2013 199,993,156 90,475,486 109,517,670 0 0 109,517,670 3,925,401 1/1/2012 FY 2014 306,901,127 196,103,957 110,797,170 0 0 110,797,170 9,358,858 1/1/2013 FY 2015 316,944,391 178,306,881 138,637,510 2,880,000 0 141,517,510 16,477,686 1/1/2014 FY 2016 309,883,790 159,027,124 150,856,666 6,041,734 0 156,898,400 17,156,898 1/1/2015 FY 2017 336,428,957 147,479,758 188,949,199 6,461,998 0 195,411,197 25,360,541 1/1/2016 FY 2018 336,428,957 147,479,758 188,949,199 6,461,998 0 195,411,197 6,818,061 1/1/2017 FY 2019 336,428,957 147,479,758 188,949,199 6,461,998 0 195,411,197 19,378,918 1/1/2018 FY 2020 336,428,957 147,479,758 188,949,199 6,461,998 0 195,411,197 19,454,549 1/1/2019 FY 2021 336,428,957 147,479,758 188,949,199 6,461,998 16,345,771 211,756,968 19,357,873 1/1/2020 FY 2022 336,428,957 147,479,758 188,949,199 6,461,998 30,128,234 225,539,431 51,148,198 1/1/2021 FY 2023 336,428,957 147,479,758 188,949,199 6,461,998 30,128,234 225,539,431 50,081,812 1/1/2022 FY 2024 336,428,957 147,479,758 188,949,199 6,461,998 30,128,234 225,539,431 48,842,135 1/1/2023 FY 2025 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 47,761,939 1/1/2024 FY 2026 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 46,836,291 1/1/2025 FY 2027 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 41,784,853 1/1/2026 FY 2028 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 37,662,679 1/1/2027 FY 2029 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 37,403,892 1/1/2028 FY 2030 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 37,283,048 1/1/2029 FY 2031 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 37,135,241 1/1/2030 FY 2032 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 37,122,910 1/1/2031 FY 2033 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 30,163,289 1/1/2032 FY 2034 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 30,181,374 1/1/2033 FY 2035 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 30,174,798 1/1/2034 FY 2036 238,069,229 105,456,210 132,613,019 6,461,998 30,128,234 169,203,251 30,143,559 (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. Total taxable value increased in fiscal year 2013-14 due to 2012 Amended Area of the Urban Renewal Area. (2) Taxable value frozen base decreases due to commercial and industrial rollback amounts starting in fiscal year 2014-15 and multi-residential rollback amounts starting in fiscal year 2016-17. TAX INCREMENT CASH FLOW AND ANTICIPATE DEBT COVERAGE Taxable Valuation Taxable Available Certified 2012D TIF 2016E TIF Other Total Annual Ending Available Requested Assessment Fiscal Available for Valuation TIF Tax Increment Tax Increment Other Total Revenue Revenue TIF TIF Surplus/Cash Debt Debt Date Year Certification (1)Certified Tax Rate (2)Revenues (3)Revenues Revenues Revenues Bonds Bonds Debt Debt (Deficit)Balance (4)Coverage Coverage 1/1/2010 FY 2012 105,863,210 0 33.01166 3,494,720 0 0 0 0 0 0 0 0 662,510 n.a.n.a. 1/1/2011 FY 2013 109,517,670 3,925,401 31.86088 3,489,329 128,072 31,795 159,867 0 0 159,867 159,867 0 662,510 n.a.n.a. 1/1/2012 FY 2014 110,797,170 9,358,858 30.36918 3,364,819 289,650 148 289,798 75,335 0 214,315 289,650 148 662,658 44.66 1.55 1/1/2013 FY 2015 141,517,510 16,477,686 29.78504 4,215,105 502,339 5,090 507,429 75,335 0 427,004 502,339 5,090 667,748 55.95 1.05 1/1/2014 FY 2016 156,898,400 17,156,898 30.49001 4,783,834 532,776 2,434 535,210 205,335 0 172,256 377,591 157,619 825,367 23.30 1.00 1/1/2015 FY 2017 195,411,197 25,360,541 30.41114 5,942,677 805,965 0 805,965 204,035 0 307,715 511,750 294,215 1,119,582 29.13 1.00 1/1/2016 FY 2018 195,411,197 6,818,061 30.41114 5,942,677 207,345 0 207,345 207,345 0 0 207,345 0 1,119,582 28.66 1.00 1/1/2017 FY 2019 195,411,197 19,378,918 30.41114 5,942,677 589,335 0 589,335 205,185 384,150 0 589,335 0 1,119,582 10.08 1.00 1/1/2018 FY 2020 195,411,197 19,454,549 30.41114 5,942,677 591,635 0 591,635 207,485 384,150 0 591,635 0 1,119,582 10.04 1.00 1/1/2019 FY 2021 211,756,968 19,357,873 30.41114 6,439,771 588,695 0 588,695 204,545 384,150 0 588,695 0 1,119,582 10.94 1.00 1/1/2020 FY 2022 225,539,431 51,148,198 30.41114 6,858,911 1,555,475 0 1,555,475 206,325 1,349,150 0 1,555,475 0 1,119,582 4.41 1.00 1/1/2021 FY 2023 225,539,431 50,081,812 30.41114 6,858,911 1,523,045 0 1,523,045 207,845 1,315,200 0 1,523,045 0 1,119,582 4.50 1.00 1/1/2022 FY 2024 225,539,431 48,842,135 30.41114 6,858,911 1,485,345 0 1,485,345 203,945 1,281,400 0 1,485,345 0 1,119,582 4.62 1.00 1/1/2023 FY 2025 169,203,251 47,761,939 30.41114 5,145,664 1,452,495 0 1,452,495 204,745 1,247,750 0 1,452,495 0 1,119,582 3.54 1.00 1/1/2024 FY 2026 169,203,251 46,836,291 30.41114 5,145,664 1,424,345 0 1,424,345 205,095 1,219,250 0 1,424,345 0 1,119,582 3.61 1.00 1/1/2025 FY 2027 169,203,251 41,784,853 30.41114 5,145,664 1,270,725 0 1,270,725 204,975 1,065,750 0 1,270,725 0 1,119,582 4.05 1.00 1/1/2026 FY 2028 169,203,251 37,662,679 30.41114 5,145,664 1,145,365 0 1,145,365 204,365 941,000 0 1,145,365 0 1,119,582 4.49 1.00 1/1/2027 FY 2029 169,203,251 37,403,892 30.41114 5,145,664 1,137,495 0 1,137,495 203,245 934,250 0 1,137,495 0 1,119,582 4.52 1.00 1/1/2028 FY 2030 169,203,251 37,283,048 30.41114 5,145,664 1,133,820 0 1,133,820 206,770 927,050 0 1,133,820 0 1,119,582 4.54 1.00 1/1/2029 FY 2031 169,203,251 37,135,241 30.41114 5,145,664 1,129,325 0 1,129,325 204,925 924,400 0 1,129,325 0 1,119,582 4.56 1.00 1/1/2030 FY 2032 169,203,251 37,122,910 30.41114 5,145,664 1,128,950 0 1,128,950 207,800 921,150 0 1,128,950 0 1,119,582 4.56 1.00 1/1/2031 FY 2033 169,203,251 30,163,289 30.41114 5,145,664 917,300 0 917,300 0 917,300 0 917,300 0 1,119,582 5.61 1.00 1/1/2032 FY 2034 169,203,251 30,181,374 30.41114 5,145,664 917,850 0 917,850 0 917,850 0 917,850 0 1,119,582 5.61 1.00 1/1/2033 FY 2035 169,203,251 30,174,798 30.41114 5,145,664 917,650 0 917,650 0 917,650 0 917,650 0 1,119,582 5.61 1.00 1/1/2034 FY 2036 169,203,251 30,143,559 30.41114 5,145,664 916,700 0 916,700 0 916,700 0 916,700 0 1,119,582 5.61 1.00 (1) Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment of the 2001 Amended portion of the Urban Renewal Area. (2) The tax increment rate in fiscal year 2013-14 reflects the loss of the local school district's instruction support levy (ISPL) of $.12405 due to recent legislative changes. TIF tax rate does not include the SSMID levy rate of $2.00 per $1,000 of value. Starting in fiscal year 2012-13, a portion of the taxable valuation certified will be at the higher rate due to its location in the SSMID. (3) The available tax increment revenues do not reflect an estimate for the portion of the available valuation that would be taxed at the higher SSMID rate. (4) The balance includes TIF reserve fund of $207,845.