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FY2019 Longterm Debt Disclosure Report Date: January 31, 2020 To: Geoff Fruin, City Manager From: Jacklyn Fleagle, Budget & Compliance Officer RE: Long-term Debt Disclosure Report On October 6, 2015, the City Council adopted a new Debt Management Policy. As part of that policy, an annual debt report was to be submitted within 210 days after the fiscal year-end to the City Manager and the City Council. The City’s fiscal year 2019 ended on June 30, 2019, and this report is intended to provide information in regards to that fiscal year. According to the policy, the annual debt report should include, at a minimum, the following information: • General Long-term Debt Obligations: • Property valuations and trend valuations for total actual and taxable valuations • List of the City’s 10 largest taxpayers • Summary of all of the City’s direct, long-term debt obligations • Debt per capita (GO Debt and TIF Revenue Debt) • Debt per total assessed value (GO Debt and TIF Revenue Debt) • City’s debt versus the legal debt limit • Revenue-Secured Debt Obligations: • Summary of the system • Summary of the system’s rates and charges • The historical trend of system’s sales and charges • Coverage ratios for system • Number of system customers, if applicable • List of system’s 10 largest users, if applicable According to the policy, the annual debt report should also include a list of any potential upcoming debt issues and a summary of any material events that have occurred in the past year. The report may also include any other relevant information that is significant to the City’s debt program or ability to repay its debt obligations. During fiscal year 2019, the City incurred the following significant events related to its bond obligations: • Principal and interest payment delinquencies: None • Non-payment related defaults, if material: None • Unscheduled draws on debt service reserves reflecting financial difficulties: None • Unscheduled draws on credit enhancements relating to the Bonds reflecting financial substitution of credit or liquidity providers, or their failure to perform: None • Substitution of credit or liquidity providers, or their failure to perform: None • Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or January 31, 2020 Page 2 other material notices or determinations with respect to the tax-exempt status of the Series Bonds, or material events affecting the tax-exempt status of the Bonds: None • Modifications to rights of Holders of the Bonds, if material: None • Bond calls (excluding sinking fund mandatory redemptions), if material, and tender offers; a Notice of Material Event was timely filed for each of these events: i. 2010A Sewer Revenue bond maturities called on July 1, 2018 ii. 2011C GO bond maturities called on July 1, 2018 • Defeasances of the Bonds; a Notice of Material Event was timely filed for this event: None • Release, substitution, or sale of property securing repayment of the Bonds, if material: None • Rating changes on the Bonds: None • Bankruptcy, insolvency, receivership or similar event of the Issuer: None • The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material: None • Appointment of a successor or additional trustee or the change of name of a trustee, if material: None • Incurrence of a Financial Obligation of the Issuer, if material, or agreement to covenants events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer, any of which affect security holders, if material: None • Default, event of acceleration, termination event, modification of terms or similar events under the terms of a Financial Obligation of the Issuer, any of which reflect financial difficulties: None In the next 180 days, we are currently anticipating the following potential bond issues: • 2020 General Obligation Bonds – 2020 CIP Program - $12,240,000 Other potential debt issues include: None Attached to this memo are summaries that include the additional financial and debt information mentioned above. This information along with our Fiscal Year 2019 Comprehensive Annual Financial Report (CAFR) will be provided to our bondholders and will be posted on the Electronic Municipal Market Access (EMMA) web site in accordance with Municipal Securities Rulemaking Board (MSRB) rules. This information must be posted by January 26, 2020 in order to comply with the continuing disclosure certificates on our outstanding bonded debt. We are not aware of any material or significant events that will prevent the City from meeting its current outstanding bonded debt obligations. CONTINUING DISCLOSURE SUBMISSION FINANCIAL AND OPERATING REPORT FOR THE FISCAL YEAR JUNE 30, 2019 Relating to CITY OF IOWA CITY Johnson County, Iowa GENERAL OBLIGATION DEBT CUSIP NO. 462308 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. Pursuant to Securities and Exchange Commission Rule 15c2-12 For further information please contact: Dennis Bockenstedt Director of Finance City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Telephone: (319) 356-5053 January 24, 2020 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 2 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 2017 valuation currently applicable to the Fiscal Year 2018-19 is as follows: 2017 Actual Valuation of Property ......................................... $5,907,660,998 Legal Debt Limit of 5% .......................................................... 0.05 Legal Debt Limit .................................................................... $ 295,383,050 Less: TIF Revenue Debt Subject to Debt Limit ...................... (14,930,000) Less: Total G.O. Debt Subject to Debt Limit .......................... (52,470,000) Less: Other Loans ................................................................. (603,000) Less: Other Legal Indebtedness (TIF Rebates) ..................... (27,704,000) Total Applicable Debt ............................................................ (95,707,000) Net Debt Limit ....................................................................... $ 199,676,050 DIRECT DEBT General Obligation Debt Supported by Property Taxes and Tax Increment Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 June 2012 $ 9,070,000 City Improvements 6/22 $ 2,935,000 July 2013 7,230,000 City Improvements 6/23 3,380,000 June 2014 11,980,000 Refunded City Improvements 6/24 4,875,000 June 2015 7,785,000 City Improvements 6/25 4,915,000 June 2016 8,795,000 City Improvements 6/26 6,785,000 June 2017 9,765,000 City Improvements 6/27 7,960,000 June 2018 8,895,000 City Improvements 6/28 8,085,000 June 2018 3,100,000 Taxable City Improvements 6/20 1,000,000 June 2019 12,535,000 City Improvements 6/29 12,535,000 Total General Obligation Bonds $52,470,000 The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 3 GENERAL OBLIGATION DEBT(1) (Principal Only) Fiscal Year Ending Series Series Series Series Series Series Series Series June 30 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2018B 2020 ........................................... $ 955,000 $ 820,000 $ 925,000 $ 765,000 $ 910,000 $ 920,000 $ 825,000 $1,000,000 2021 ........................................... 975,000 835,000 950,000 785,000 930,000 940,000 840,000 0 2022 ........................................... 1,005,000 855,000 970,000 805,000 950,000 955,000 855,000 0 2023 ........................................... 0 870,000 1,000,000 830,000 965,000 980,000 875,000 0 2024 ........................................... 0 0 1,030,000 850,000 985,000 1,000,000 895,000 0 2025 ........................................... 0 0 0 880,000 1,010,000 1,025,000 915,000 0 2026 ........................................... 0 0 0 0 1,035,000 1,055,000 940,000 0 2027 ........................................... 0 0 0 0 0 1,085,000 960,000 0 2028 ........................................... 0 0 0 0 0 0 980,000 0 2029 ........................................... 0 0 0 0 0 0 0 0 Total ......................................... $2,935,000 $3,380,000 $4,875,000 $4,915,000 $6,785,000 $7,960,000 $8,085,000 $1,000,000 Fiscal Year Total Ending Series General Obligation Cumulative Retirement Principal & June 30 2019 Debt Amount Percent Interest 2020 ........................................... $ 4,125,000 $11,245,000 $11,245,000 21.43% $12,441,696 2021 ........................................... 905,000 7,160,000 18,405,000 35.08% 8,103,923 2022 ........................................... 925,000 7,320,000 25,725,000 49.03% 8,106,163 2023 ........................................... 955,000 6,475,000 32,200,000 61.37% 7,103,413 2024 ........................................... 985,000 5,745,000 37,945,000 72.32% 6,220,513 2025 ........................................... 875,000 4,705,000 42,650,000 81.28% 5,051,513 2026 ........................................... 905,000 3,935,000 46,585,000 88.78% 4,175,700 2027 ........................................... 940,000 2,985,000 49,570,000 94.47% 3,132,325 2028 ........................................... 960,000 1,940,000 51,510,000 98.17% 2,012,600 2029 ........................................... 960,000 960,000 52,470,000 100.00% 981,600 Total ......................................... $12,535,000 $52,470,000 $57,329,446 Note: (1) Source: the City. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 4 INDIRECT GENERAL OBLIGATION DEBT DEBT RATIOS STATEMENT OF BONDED INDEBTEDNESS(1)(2) City Actual Value, January 1, 2017 ............................................................................................................................................................. $5,907,660,998 City Taxable Value, January 1, 2017 .......................................................................................................................................................... $3,745,477,705 Per Capita Applicable Ratio to City Ratio to City (2010 Pop. Total Percent Amount Actual Value Taxable Value 67,862 ) Direct Bonded Debt ....................................... $ 52,470,000 100.00% $ 52,470,000 0.89% 1.40% $ 773.19 TIF Revenue Debt ......................................... 14,930,000 100.00% 14,930,000 0.25% 0.40% 220.00 Overlapping Debt: Iowa City Community School District ............. $115,095,000 57.24% $ 65,880,378 1.11% 1.76% 970.80 Clear Creek-Amana Community School Dist. 81,155,000 0.04% 32,462 0.00% 0.00% 0.48 Kirkwood Community College(3) ................... 80,231,000 14.19% 11,384,779 0.19% 0.30% 167.76 Johnson County ............................................ 5,145,000 42.22% 2,172,219 0.04% 0.06% 32.01 Total Overlapping Bonded Debt ................... $349,026,000 $ 79,469,838 1.34% 2.12% $1,171.05 Total Direct and Overlapping Bonded Debt ................................................ $146,869,838 2.48% 3.92% $2,164.24 Per Capita Actual Value ................................................................................................................................................................................ $87,054.04 Per Capita Taxable Value .............................................................................................................................................................................. $55,192.56 Notes: (1) Source: the City, Audited Financial Statements and EMMA for the County, School Districts and Community College. (2) As of June 30, 2019. (3) Excludes $32,315,000 in Industrial New Jobs Training Certificates, which are expected to be paid by proceeds from anticipated job credits from withholding taxes. OTHER OBLIGATIONS OTHER DEBT The City has revenue debt payable solely from the net revenues of the City’s Urban Renewal Areas as follows: Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 Nov 2012 $ 2,655,000 Developer Grant 6/32 $ 2,125,000 Sept.2016 12,805,000 Developer Grant 6/36 12,805,000 Total $14,930,000 The City has revenue debt payable solely from the net revenues of the Municipal Parking System as follows: Date of Original Final Capital Lease Obligation Issue Amount Issued Purpose Maturity As of 6/30/19 April 2017 $15,400,000 Parking 6/37 $ 9,413,024 The City has revenue debt payable solely from the net revenues of the Municipal Water System as follows: Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 June 2012 $ 4,950,000 Water Refunding 7/22 $ 2,100,000 June 2016 3,650,000 Water Refunding 7/24 2,865,000 June 2017 5,910,000 Water Refunding 7/25 5,300,000 Total $10,265,000 The City has revenue debt payable solely from the net revenues of the Municipal Sewer System as follows: Date of Original Final Principal Outstanding Issue Amount Issued Purpose Maturity As of 6/30/19 June 2016 $9,360,000 Sewer Refunding 7/21 $5,600,000 June 2017 4,550,000 Sewer Refunding 7/22 4,275,000 Total $9,875,000 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 5 IOWA PROPERTY VALUATIONS In compliance with Section 441.21 of the Code of Iowa, as amended, the State Director of Revenue annually directs all county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The final values, called Actual Valuation, are then adjusted by the County Auditor. Taxable Valuation subject to tax levy is then determined by the application of State determined rollback percentages, principally to residential property. Beginning in 1978, the State required a reduction in Actual Valuation to reduce the impact of inflation on its residents. The resulting value is defined as the Taxable Valuation. Such rollback percentages may be changed in future years. Certain historical rollback percentages for residential, multi-residential, agricultural and commercial valuations are as follows: PERCENTAGES FOR TAXABLE VALUATION AFTER ROLLBACKS(1) Multi- Ag Land Fiscal Year Residential Residential(2) & Buildings Commercial 2010/11 ................ 46.9094% N/A 66.2715% 100.0000% 2011/12 ................ 48.5299% N/A 69.0152% 100.0000% 2012/13 ................ 50.7518% N/A 57.5411% 100.0000% 2013/14 ................ 52.8166% N/A 59.9334% 100.0000% 2014/15 ................ 54.4002% N/A 43.3997% 95.0000% 2015/16 ................ 55.7335% N/A 44.7021% 90.0000% 2016/17 ................ 55.6259% 86.2500% 46.1068% 90.0000% 2017/18 ................ 56.9391% 82.5000% 47.4996% 90.0000% 2018/19 ................ 55.6209% 78.7500% 54.4480% 90.0000% 2019/20 ................ 56.9180% 75.0000% 56.1324% 90.0000% Notes: (1) Source: the Iowa Department of Revenue. (2) New category beginning with fiscal year 2017. BUILDING PERMITS City Building Permits(1) (Excludes the Value of Land) Calendar Year: 2015 2016 2017 2018 2019 New Construction No. of New Permits .................................... 184 262 211 151 120 Valuation: .................................................. $106,350,572 $295,339,497 $108,285,647 $115,872,543 $134,485,833 Remodeling Repair and Additions: No. of New Permits: ................................... 461 532 507 467 484 Valuation: .................................................. $ 31,960,941 $ 93,087,526 $108,532,366 $ 76,942,267 $ 97,036,048 Total Permits ............................................. 645 794 718 618 604 Total Valuations ......................................... $138,311,513 $388,427,023 $216,818,013 $192,814,810 $231,521,881 Note: (1) Source: the City. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 6 PROPERTY VALUATIONS AND TREND OF VALUATIONS ACTUAL (100%) VALUATIONS FOR THE CITY(1)(2) Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 Property Class Levy Year: 2013 2014 2015 2016 2017 Residential ........................................................ $3,495,700,460 $3,617,590,930 $3,893,541,900 $4,011,317,530 $4,279,194,820 Agricultural ........................................................ 3,680,920 3,553,520 3,736,510 3,443,020 2,626,150 Commercial ....................................................... 1,157,640,090 1,155,761,766 856,972,664 877,491,737 964,588,039 Industrial ........................................................... 80,494,880 76,495,918 79,053,598 79,474,988 74,013,639 Multi-residential(3) ............................................. 0 0 415,208,021 420,082,751 482,118,763 Railroads ........................................................... 3,827,506 4,015,580 4,096,577 3,984,932 3,549,414 Utilities without Gas and Electric ........................ 9,599,528 8,239,789 7,375,066 6,734,894 7,099,293 Gas and Electric Utility ...................................... 78,642,915 87,728,294 92,987,351 94,582,279 97,050,716 Less: Military Exemption ................................... (2,939,122) (2,828,002) (2,727,994) (2,635,396) (2,579,836) Total ................................................................ $4,826,647,177 $4,950,557,795 $5,350,243,693 $5,494,476,735 $5,907,660,998 Percent Change +(-) ........................................ 3.39%(4) 2.57% 8.07% 2.70% 7.52% Notes: (1) Source: Iowa Department of Management. (2) Includes tax increment finance (TIF) valuations used in the following amounts: January 1: 2013 2014 2015 2016 2017 TIF Valuation ............................... $21,131,574 $42,307,287 $72,650,838 $80,559,947 $85,379,369 (3) New Class as of January 1, 2015, previously reported as Commercial Property. (4) Based on 2012 Actual Valuation of $4,668,318,992. For the January 1, 2017 levy year, the City’s Taxable Valuation was comprised of approximately 64% residential, 23% commercial, 2% industrial, 10% multi-residential, 1% utilities and less than 1% agriculture and military exemption. PROPERTY VALUATIONS AND TREND OF VALUATIONS TAXABLE (“ROLLBACK”) VALUATIONS FOR THE CITY(1)(2) Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 Property Class Levy Year: 2013 2014 2015 2016 2017 Residential ........................................................ $1,901,667,703 $2,016,210,314 $2,165,817,742 $2,284,007,603 $2,380,126,625 Agricultural ........................................................ 1,597,501 1,588,496 1,706,955 1,618,090 1,429,547 Commercial ....................................................... 1,099,758,752 1,040,185,590 771,275,414 789,742,578 868,129,247 Industrial ........................................................... 76,470,143 68,846,326 71,148,238 71,527,489 66,612,275 Multi-residential(3) ............................................. 0 0 358,117,010 346,568,385 379,668,606 Railroads ........................................................... 3,636,130 3,614,022 3,686,919 3,586,439 3,194,473 Utilities without Gas and Electric(4) ................... 9,599,528 8,239,789 7,375,066 6,734,894 7,099,293 Gas and Electric Utility(4) .................................. 47,004,994 46,785,426 44,986,783 41,702,196 41,797,475 Less: Military Exemption ................................... (2,939,122) (2,828,002) (2,727,994) (2,635,396) (2,579,836) Total ................................................................ $3,136,795,629 $3,182,641,961 $3,421,386,133 $3,542,852,278 $3,745,477,705 Percent Change +(-) ........................................ 3.32%(5) 1.46% 7.50% 3.55% 5.72% Notes: (1) Source: Iowa Department of Management. (2) Includes tax increment finance (TIF) valuations used in the following amounts: January 1: 2013 2014 2015 2016 2017 TIF Valuation ............................... $21,131,574 $33,331,128 $72,650,838 $80,559,947 $85,379,369 (3) New Class as of January 1, 2015, previously reported as Commercial Property. (4) See “PROPERTY TAX INFORMATION - Utility Property Tax Replacement” herein. (5) Based on 2012 Taxable Valuation of $3,036,012,368. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 7 LEVIES AND TAX COLLECTIONS(1) The following shows the trend in the City’s tax extensions and collections. Levy Fiscal Amount Amount Percent Year Year Levied Collected(2) Collected 2010 ............... 2011-12 .............. $49,589,988 $49,543,860 99.91% 2011 ............... 2012-13 .............. 50,407,375 50,419,618 100.02% 2012 ............... 2013-14 .............. 50,307,189 50,051,577 99.49% 2013 ............... 2014-15 .............. 51,608,730 51,496,353 97.70% 2014 ............... 2015-16 .............. 52,033,966 52,020,805 99.97% 2015 ............... 2016-17 .............. 55,330,223 55,357,357 100.05% 2016 ............... 2017-18 .............. 56,458,399 56,525,799 100.12% 2017 ............... 2018-19 .............. 59,173,825 59,252,017 100.13% Notes: (1) Source: the State of Iowa Department of Management and the City. Does not include Levies or Collections for Utility Replacement. Does not include levies and collections for the City’s tax increment finance district. (2) Includes delinquent taxes. LARGER TAXPAYERS(1) Levy Year 2017 Taxpayer Name Business/Service Taxable Valuation(2) American College Testing, Inc (aka ACT, Inc.) .............. Commercial ................................................................. $ 50,377,182 MidAmerican Energy ..................................................... Utility ........................................................................... 39,501,682 BBCS-Hawkeye Housing LLC ....................................... Real Estate Management/Apartments.......................... 25,227,744 Ann S Gerdin Revocable Trust ...................................... Commercial ................................................................. 22,903,407 MidWestOne Bank ......................................................... Banking ....................................................................... 20,850,984 Dealer Properties IC LLC ............................................... Commercial ................................................................. 19,318,887 Procter & Gamble LLC ................................................... Industrial ...................................................................... 16,805,285 Vesper Iowa City LLC .................................................... Apartments .................................................................. 15,123,579 Alpla Inc ........................................................................ Industrial ...................................................................... 14,019,426 National Computer Systems Inc ..................................... Commercial ................................................................. 13,673,205 Total ................................................................................................................................................................. $237,801,381 Ten Largest Taxpayers as Percent of City’s 2017 Taxable Valuation ($3,745,477,705) .................................... 6.35% Notes: (1) Source: Johnson County. (2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. 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 2018-19. 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 2018-19. Debt service levies are not limited. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 8 TAX RATES Levy Years 2013 - 2017(1)(2) (Per $1,000 Actual Valuation) Fiscal Year: 2014/15 2015/16 2016/17 2017/18 2018/19 Levy Year: 2013 2014 2015 2016 2017 City: General Fund ..................................................... $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 Emergency Levy ................................................. 0.00000 0.00000 0.00000 0.00000 0.00000 Debt Service Fund .............................................. 4.12963 3.92833 3.82846 3.57846 3.22846 Employee Benefits ............................................. 2.96331 3.11277 3.14415 3.14415 3.34415 Capital Improvement .......................................... 0.00000 0.00000 0.00000 0.00000 0.00000 Other .................................................................. 1.51226 1.50986 1.51044 1.51044 1.51044 Total City .......................................................... $16.70520 $16.65096 $16.58305 $16.33305 $16.18305 Johnson County ................................................. $6.74168 $6.90337 $6.77140 $6.85143 $6.53594 Iowa City Community School District .................. 13.69999 13.86773 13.98935 13.95855 14.85629 Kirkwood ............................................................ 1.05754 1.06125 1.08048 1.13174 1.20354 Other .................................................................. 0.32315 0.32784 0.32450 0.33036 0.30557 Total Tax Rate(3) ............................................. $38.52756 $38.81115 $38.74878 $38.60513 $39.08439 Notes: (1) Source: Iowa Department of Management. (2) Does not include the tax rate for agriculture. (3) Taxpayers in the Iowa City Community School District area. PROPERTY TAX LEGISLATION From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have an adverse impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel are based upon existing legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any pending federal or state tax legislation. During the 2019 legislative session, the Iowa General Assembly enacted Senate File 634 (the “2019 Act”). This bill modifies the process for hearing and approval of the total maximum property tax dollars under certain levies in the county budget. The bill also includes a provision that will require the affirmative vote of 2/3 of the board of supervisors when the maximum property tax dollars under these levies exceed an amount determined under a prescribed formula. The 2019 Act does not change the process for hearing and approval of the Debt Service Levy pledged for repayment of the Bonds. It is too early to evaluate the affect the 2019 Act will have on the overall financial position of the City or its ability to fund essential services. During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the “2013 Act”). Among other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential and agricultural property 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 90%, (iii) created a new property tax classification for multi-residential properties (apartments, nursing homes, assisted living facilities and certain other rental property) and assigned a declining rollback percentage to such properties for each year until the residential rollback percentage is reached in the 2022 assessment year, after which the rollback percentage for such properties will be equal to the residential rollback percentage each assessment year, and (iv) exempted a specified portion of the assessed value of telecommunication properties. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 9 The Act includes 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. Beginning in fiscal year 2018 the standing appropriation cannot exceed the actual 2017 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 to 3%, the gradual transition for multi-residential properties from the residential rollback percentage (currently 53% of market value), 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’s discretion in establishing the annual replacement amount that is appropriated each year commencing in fiscal 2018, the impact of the 2013 Act on the City’s future property tax collections is uncertain and the City has not attempted to quantify the financial impact of the 2013 Act’s provisions on the City’s future operations. Notwithstanding any decrease in property tax revenues that may result from the 2013 Act, Iowa Code section 76.2 provides that when an Iowa political subdivision issues bonds, "[t]he 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. CITY FUNDS ON HAND (Cash and Investments as of June 30, 2019, in thousands) City Operating Funds $175,028 City Restricted Funds 48,703 Total $233,731 The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 10 STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES(1) (Amounts Expressed in Thousands) Audited as of June 30 2015 2016 2017 2018 2019 ASSETS: Equity in Pooled Cash and Investments .................................. $ 63,571 $ 84,052 $111,030 $109,860 $111,645 Receivables: Property Tax .......................................................................... 52,240 55,482 56,639 59,538 60,529 Accounts and Unbilled Usage ................................................ 718 953 820 817 941 Interest .................................................................................. 364 284 428 920 967 Notes ..................................................................................... 17,308 16,252 5,524 5,304 5,209 Internal Balances ..................................................................... (12,127) (13,688) (15,494) (16,069) (20,055) Due from Other Governments.................................................. 10,298 5,987 4,519 4,067 7,584 Prepaid Item ............................................................................ 0 10 811 810 907 Inventories ............................................................................... 656 688 730 602 650 Assets Held for Resale ............................................................ 2,170 582 750 562 689 Restricted Assets: Equity in Pooled Cash and Investments................................. 45,981 36,914 24,560 26,108 18,553 Other Post Employment Benefits Asset ................................... 25 40 35 0 0 Capital Assets: Land and Construction in Progress ........................................ 48,032 48,275 52,545 73,176 51,291 Other Capital Assets (Net of Accumulated Depreciation) ......... 151,620 158,947 173,598 174,835 210,302 Total Assets ....................................................................... $380,856 $394,778 $416,495 $440,530 $449,212 DEFERRED OUTFLOWS OF RESOURCES:(2) Pension Related Deferred Outflows ......................................... $ 6,767 $ 7,192 $ 13,131 $ 11,477 $ 11,255 OPEB Related Deferred Outflows ............................................ 0 0 0 637 1,467 Total Deferred Outflows of Resources ................................. $ 6,767 $ 7,192 $ 13,131 $ 12,114 $ 12,722 LIABILITIES: Accounts Payable .................................................................... $ 2,296 $ 3,374 $ 2,127 $ 5,168 $ 3,399 Contracts Payable ................................................................... 5,468 2,773 2,521 3,663 5,864 Accrued Liabilities ................................................................... 4,145 4,143 4,182 4,193 5,231 Interest Payable ...................................................................... 168 110 133 134 151 Deposits .................................................................................. 1,078 1,715 1,230 952 1,008 Advances from Grantors .......................................................... 69 47 144 124 98 Due to Other Governments ...................................................... 636 402 42 29 31 Notes Payable ......................................................................... 2,004 582 663 475 602 Noncurrent Liabilities: Due Within One Year: Employee Vested Benefits ................................................... 1,148 1,185 1,252 1,253 1,308 Bonds Payable .................................................................... 11,255 10,384 8,230 9,612 11,534 Due in more than One Year: Employee Vested Benefits ................................................... 928 947 989 987 1,012 Net Pension Liability ............................................................ 24,556 30,539 39,080 38,867 38,890 Other Post Employment Benefits Liability ............................ 2,932 3,227 3,660 5,472 6,401 Notes Payable ..................................................................... 211 211 211 211 211 Bonds Payable .................................................................... 50,785 48,105 59,509 58,307 56,771 Total Liabilities ................................................................... $107,679 $107,744 $123,973 $129,447 $132,511 DEFERRED INFLOWS OF RESOURCES: Unavailable Revenues: Pension Related Deferred Inflows.......................................... $ 10,791 $ 3,740 $ 1,603 $ 1,565 $ 1,940 OPEB Related Deferred Inflows ............................................ 0 0 0 246 216 Succeeding Year Property Taxes .......................................... 52,035 55,330 56,459 59,173 60,296 Notes ..................................................................................... 11,422 11,226 0 0 0 Grants ................................................................................... 0 12 0 0 0 Total Deferred Inflows of Resources .................................. $ 74,248 $ 70,308 $ 58,062 $ 60,984 $ 62,452 NET POSITION: Net Investment in Capital Assets ............................................. $153,729 $163,362 $183,651 $157,106 $208,028 Restricted for or by: Employee Benefits................................................................. 1,593 1,671 2,810 3,119 4,249 Capital Projects ..................................................................... 27,014 31,456 30,856 21,463 17,020 Debt Service .......................................................................... 6,921 6,463 7,221 8,423 9,514 Police .................................................................................... 510 458 349 283 214 Other Purposes ..................................................................... 409 1,657 2,590 4,469 4,359 Grant Agreement ................................................................... 0 449 3,850 3,733 3,463 Unrestricted ............................................................................. 15,520 18,402 16,264 63,617 20,124 Total Net Position .............................................................. $205,696 $223,918 $247,591 $262,213 $266,971 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 11 STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES(1) (Amounts Expressed in Thousands) Audited for the Year Ended June 30 2015 2016 2017 2018 2019 FUNCTION/PROGRAMS: Governmental Activities: Public Safety ......................................................................... $ (16,991) $ (15,969) $ (18,053) $ (20,466) $ (20,862) Public Works ......................................................................... 8,350 998 6,746 (3,084) (2,516) Culture and Recreation .......................................................... (13,208) (13,535) (14,573) (15,189) (14,834) Community and Economic Development ............................... (6,101) (4,322) (6,264) (10,166) (14,116) General Government ............................................................. (4,777) (4,988) (4,600) (5,338) (5,807) Interest on Long-Term Debt ................................................... (1,517) (1,287) (1,481) (1,414) (1,444) Total Governmental Activities .............................................. $ (34,244) $ (39,103) $ (38,225) $ (55,657) $ (59,579) General Revenues: Property Taxes, Levied for General Purposes ....................... $ 52,205 $ 53,114 $ 57,649 $ 59,046 $ 61,739 Hotel/Motel Tax ..................................................................... 1,057 1,079 1,137 1,046 1,302 Gas and Electric Tax ............................................................. 851 764 726 684 668 Utility Franchise Tax .............................................................. 902 874 939 976 965 Grants and Contributions Not Restricted to Specific Purposes ................................................................. 1,048 2,080 1,583 1,547 1,552 Earnings on Investments ....................................................... 1,188 1,045 1,397 2,368 3,257 Gain on Disposal of Capital Assets ........................................ 135 218 2,151 140 186 Miscellaneous........................................................................ 5,518 4,464 3,369 3,656 3,329 Transfers ................................................................................. (10,057) (6,395) (7,053) 1,814 (8,661) Reassignment of Cable Television to Governmental Activities ................................................................................ 0 82 0 0 0 Total General Revenues and Transfers ............................... $ 52,847 $ 57,325 $ 61,898 $ 71,277 $ 64,337 Changes in Net Position .................................................... $ 18,603 $ 18,222 $ 23,673 $ 15,620 $ 4,758 Net Position Beginning of Year ................................................ 187,093(2) 205,696 223,918 246,593(2) 262,213 Net Position End of Year ......................................................... $205,696 $223,918 $247,591 $262,213 $266,971 Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. (2) Restated. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 12 BALANCE SHEET GENERAL FUND(1) (Amounts Expressed in Thousands) Audited as of June 30 2015 2016 2017 2018 2019 ASSETS: Equity in Pooled Cash and Investments .................................... $19,001 $30,214 $32,500 $36,321 $38,979 Receivables: Property Taxes ........................................................................ 29,922 31,825 32,965 34,973 36,301 Accounts and Unbilled Usage .................................................. 250 449 410 496 491 Interest .................................................................................... 217 163 161 276 360 Notes ....................................................................................... 1,340 1,305 1,292 1,276 1,329 Advances to Other Funds .......................................................... 2,681 0 0 0 56 Due from Other Governments.................................................... 1,859 1,758 1,887 1,941 2,131 Prepaid Item .............................................................................. 0 10 719 726 818 Assets Held for Resale .............................................................. 2,005 582 750 562 689 Restricted Assets: Equity in Pooled Cash and Investments................................... 30,141 21,277 10,268 1,904 2,028 Total Assets ....................................................................... $87,416 $87,583 $80,952 $78,475 $83,182 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES: Liabilities: Accounts Payable .................................................................... $ 1,328 $ 1,376 $ 1,191 $ 1,492 $ 1,497 Accrued Liabilities.................................................................... 887 1,141 1,321 1,391 1,466 Due to Other Governments ...................................................... 312 29 38 29 31 Interest Payable ...................................................................... 37 0 4 5 17 Notes Payable ......................................................................... 2,004 582 663 475 602 Liabilities Payable from Restricted Assets: Deposits ............................................................................... 1,072 1,710 1,224 947 1,004 Advances from Grantors ....................................................... 27 0 7 113 94 Total Liabilities ................................................................... $ 5,667 $ 4,838 $ 4,448 $ 4,452 $ 4,711 DEFERRED INFLOWS OF RESOURCES: Unavailable Revenues: Succeeding Year Property Taxes .......................................... $29,805 $31,739 $32,863 $34,764 $36,176 Notes ..................................................................................... 1,340 1,305 0 0 0 Grants ................................................................................... 82 15 6 9 34 Other ..................................................................................... 1,393 1,434 1,539 1,600 1,643 Total Deferred Inflows of Resources .................................... $32,620 $34,493 $34,408 $36,373 $37,853 FUND BALANCES: Nonspendable ......................................................................... $ 69 $ 69 $ 788 $ 793 $ 887 Restricted ................................................................................ 25,291 18,975 9,974 1,942 1,808 Committed ............................................................................... 0 4,699 5,199 4,962 0 Assigned ................................................................................. 4,483 1,143 1,342 1,437 3,565 Unassigned ............................................................................. 19,286 23,366 24,793 28,516 34,358 Total Fund Balances .......................................................... $49,129 $48,252 $42,096 $37,650 $40,618 Total Liabilities, Deferred Inflows of Resources and Fund Balances .......................................................... $87,416 $87,583 $80,952 $78,475 $83,182 Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. 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City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 13 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND(1) (Amounts Expressed in Thousands) Audited Fiscal Year Ended June 30 2015 2016 2017 2018 2019 REVENUES: Taxes ........................................................................................ $ 31,909 $ 32,229 $ 34,290 $ 35,363 $ 37,426 Licenses and Permits ................................................................ 1,806 3,056 3,521 2,734 2,981 Intergovernmental ..................................................................... 3,487 3,830 3,574 3,786 4,099 Charges for Service ................................................................... 1,460 1,543 1,665 1,465 1,595 Fines and Forfeits ...................................................................... 0 760 750 695 776 Use of Money and Property ....................................................... 845 749 839 1,164 1,599 Miscellaneous............................................................................ 5,835 1,430 1,692 1,878 1,950 Total Revenues ....................................................................... $ 45,342 $ 43,597 $ 46,331 $ 47,085 $ 50,426 EXPENDITURES: Current: Public Safety ........................................................................... $ 21,087 $ 20,967 $ 22,005 $ 22,762 $ 23,858 Public Works ........................................................................... 1,624 1,312 1,803 1,871 1,922 Cultural and Recreation ........................................................... 11,698 12,038 12,890 13,099 13,096 Community and Economic Development ................................. 3,187 2,842 3,074 2,785 3,561 General Government ............................................................... 7,093 5,479 5,471 5,550 6,144 Capital Outlay ............................................................................ 3,333 1,651 1,463 2,124 1,718 Total Expenditures................................................................... $ 48,022 $ 44,289 $ 46,706 $ 48,191 $ 50,299 Excess (Deficiency) of Revenues Over (Under) Expenditures ........................................................................... $ (2,680) $ (692) $ (375) $ (1,106) $ 127 Other Financing Sources (Uses): Issuance of Debt ....................................................................... $ 0 $ 0 $ 0 $ 17 $ 0 Sale of Capital Assets ............................................................... 164 252 268 140 758 Premiums on Issuance of Bonds ............................................... 0 0 0 0 0 Transfers In ............................................................................... 8,780 10,692 10,725 10,138 11,548 Transfers Out ............................................................................ (5,044) (11,129) (18,023) (13,635) (9,465) Total Other Financing Sources and (Uses) .............................. $ 3,900 $ (185) $ (7,030) $ (3,340) $ 2,841 Net Change in Fund Balances ................................................... $ 1,220 $ (877) $ (7,405) $ (4,446) $ 2,968 Fund Balances, Beginning ........................................................ $ 47,909 $ 49,129 $ 49,501(2) $ 42,096 $ 37,650 Fund Balances, Ending ............................................................. $ 49,129 $ 48,252 $ 42,096 $ 37,650 $ 40,618 Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2015 through 2019. (2) Restated. PENSIONS The City participates in two public pension systems, Iowa Public Employee’s Retirement System (IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). Summary descriptions of each Plan follow. In fiscal year 2019, pursuant to the IPERS’ required rate, the City’s Regular members contributed 6.29% of pay and the City contributed 9.44% for a total rate of 15.73%. The City’s contributions to IPERS for the year ended June 30, 2019 were $2,912,438. The City’s contribution to MFPRSI for year ended June 30, 2019 was $2,902,433. The City’s share of the contributions, payable from the applicable funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount. The City has always made its full required contributions to IPERS and MFPRSI. At June 30, 2019, the City reported a liability of $25,419,730 for its proportionate share of the IPERS net pension liability. The net pension liability was measured as of June 30, 2018 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The discount rate used to measure the total pension liability was 7%. The City’s proportion of the net pension liability was based on the City’s share of contributions to the pension plan relative to the contributions of all IPERS participating employers. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 14 OTHER POST-EMPLOYMENT BENEFITS (OPEB) The City operates one self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. Group insurance benefits are established under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The following table shows the City’s total OPEB liability: Total OPEB Liability Beginning of Year ................................................. $7,589,740 Changes for the year Service Cost .......................................................................... 552,791 Interest .................................................................................. 296,944 Difference Between Expected and Actual Experience ........... 1,160,860 Changes in Assumptions ....................................................... 225,633 Benefit Payments .................................................................. (948,137) Net Changes ......................................................................................... 1,288,091 Total OPEB Liability End of Year ........................................................... $8,877,831 The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 15 FINANCIAL AND OPERATING REPORT FOR THE FISCAL YEAR JUNE 30, 2019 Relating to CITY OF IOWA CITY Johnson County, Iowa WATER SYSTEM REVENUE BASE CUSIP NO. 462380 SEWER SYSTEM REVENUE BASE CUSIP NO. 462362 PARKING SYSTEM REVENUE BASE CUSIP NO. 462344 and URBAN RENEWAL AREA REVENUE BASE CUSIP NO. 462371 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 revenue, sewer revenue and urban renewal revenue debt is included in this report. Attached is additional information as required to be submitted under previous disclosure undertakings of the City. Pursuant to Securities and Exchange Commission Rule 15c2-12 City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 16 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 31.75 (FTE) employees who work in the Water Division. This division serves about 75,798 people and has over 28,972 customer water accounts. The average daily use for fiscal year 2019 was approximately 5.4 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 1.0 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 279 miles of water mains and includes over 28,000 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 3,669 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. WATER SYSTEM RATES AND CHARGES The following rates and charges were effective July 1, 2016. Water Service Charge Minimums(1) (Includes up to the first 100 cubic feet (c.f.)) Meter Size Charge Meter Size Charge 5/8" ..................... $ 7.42 2" ................... $ 25.63 3/4" ..................... 8.11 3" ................... 47.37 1" ....................... 9.56 4" ................... 82.62 1-1/2" .................... 19.06 6" ................... 166.25 Note: (1) Source: the City. Monthly Usage in excess of 100 Cubic Feet (c.f.)(1) 101 c.f. - 3,000 c.f. .................. $3.47 per 100 c.f. 3,001 c.f. and over .................. $2.49 per 100 c.f. Note: (1) Source: the City City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 17 Single Purpose Meter Charges(1) First 100 c.f. ........................................ Minimum Monthly Charge Usage in excess of 100 c.f. .................. $3.47 per 100 c.f. Note: (1) Source: the City. Changes in water rates over the last ten fiscal years: Water Rate Changes(1) Fiscal Rate Year Change 2010 .................................................... 0% 2011 .................................................... 0% 2012 .................................................... 0% 2013 .................................................... 0% 2014 .................................................... 0% 2015 .................................................... 5% 2016 .................................................... 5% 2017 .................................................... 0% 2018 .................................................... 0% 2019 .................................................... 0% Note: (1) Source: the City. SALES HISTORY AND WATER SYSTEM CHARGES(1) Fiscal Water Sales Water System Year Cubic Feet Sold(2) Charges 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 2017 ................................... 267,511,531 .............................. 9,156,005 2018 ................................... 293,046,636 .............................. 9,953,510 2019 ................................... 289,055,329 .............................. 10,139,587 Notes: (1) Source: the City. (2) Beginning in March 2015 the amounts include unbilled usage. WATER SYSTEM CUSTOMERS BY CLASSIFICATION(1)(2) Classification FY2015(4) FY2016 FY2017 FY2018 FY2019(5) Residential ............................. 23,089 23,638 24,025 27,042 27,232 Commercial ........................... 1,409 1,415 1,425 1,428 1,528 Industrial ................................ 14 14 14 17 17 Other(3) ................................. 135 131 134 178 198 Total Meters ......................... 24,647 25,198 25,598 28,665 28,972 Notes: (1) Source: the City. (2) Represents the number of meters customers billed as of the end of the fiscal year. (3) Other meters consist of rural, schools, government, churches and City meters. (4) Implemented a new utility billing system during Fiscal Year 2015, which consolidated customers with multiple meters. (5) Included all active meters for each customer – dual purpose (water and sewer) as well as single purpose meters (water only, typically for irrigation). City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 18 LARGER WATER SYSTEM CUSTOMERS(1) Fiscal Year 2019 Customer Name Charges Rank Percentage Proctor & Gamble .................................................... $ 884,980 1 8.73% Iowa City Veterans Health Care System .................. 108,501 2 1.07% Campus Apartments ................................................ 69,523 3 0.69% Mercy Hospital ......................................................... 62,721 4 0.62% Tailwind Iowa City (Rus Properties Management) .... 62,045 5 0.61% Dorminium JIT ......................................................... 52,530 6 0.52% Graduate Hotel ........................................................ 48,311 7 0.48% Seville Apartments ................................................... 38,770 8 0.38% Iowa City Community School District ........................ 37,848 9 0.37% Emerald Court Apartments ....................................... 32,840 10 0.32% Total ...................................................................... $1,398,069 13.79% Total Water System Customers $10,139,587 Note: (1) Source: the City. The remainder of this page was left blank intentionally. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 19 SEWER SYSTEM The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 300+ miles of sanitary sewers, 17 sanitary sewer lift stations, and a wastewater treatment plant. There are a total of 26.00 (FTE) employees who work in the Wastewater Division. This division serves approximately 76,000 people and has approximately 26,000 customers. The system has 3 significant industrial users, 2 non-categorical and 1 categorical. The average daily treatment plant flow for fiscal year 2019 was 10.05 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 monitors 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. SEWER SYSTEM RATES AND CHARGES The following Sewer System rates and charges were approved by the City Council and became effective July 1, 2015: Monthly 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 The following table shows historical rate increases over the last ten fiscal years. Sewer Rate Increases(1) Fiscal Year Rate Change 2010 .................................................... 0% 2011 .................................................... 0% 2012 .................................................... 0% 2013 .................................................... 0% 2014 .................................................... 0% 2015 .................................................... 0% 2016 .................................................... 0% 2017 .................................................... 0% 2018 .................................................... 0% 2019 .................................................... 0% City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 20 SALES HISTORY AND SEWER SYSTEM CHARGES(1) Fiscal Sewer Sales Sewer System Year Cubic Feet Sold(2) Charges 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 2017 ..................................... 277,712,785 12,404,360 2018 ..................................... 283,246,320 12,524,540 2019 ..................................... 288,537,266 12,822,250 Notes: (1) Source: the City. (2) Beginning in March 2015 the amount includes unbilled usage in totals. NUMBER OF SEWER SYSTEM CUSTOMERS(1) Fiscal Number of Sewer Year System Customers 2012 .................................................. 23,529 2013 .................................................. 24,059 2014 .................................................. 24,389 2015 .................................................. 24,533 2016 .................................................. 25,085 2017 .................................................. 25,485 2018 .................................................. 26,049 2019 .................................................. 26,201 Note: (1) Source: the City. LARGER SEWER SYSTEM CUSTOMERS(1) Fiscal Year 2019 Customer Name Charges Rank Percentage University of Iowa .......................................................... $ 2,145,648 1 16.73% Proctor & Gamble .......................................................... 1,317,634 2 10.28% Iowa City Landfill ............................................................ 249,780 3 1.95% Iowa City Veterans Health Care System ........................ 133,486 4 1.04% Mercy Hospital ............................................................... 100,293 5 0.78% Campus Apartments ...................................................... 77,874 6 0.61% Dorminium JIT .............................................................. 60,449 7 0.47% Tailwind Iowa City LLC .................................................. 57,910 8 0.45% Seville Apartments ......................................................... 53,432 9 0.42% Graduate Hotel .............................................................. 50,597 10 0.39% Total ............................................................................ $ 4,247,103 33.12% Total Sewer System Customers ..................................... $12,822,250 Note: (1) Source: the City. City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 21 PARKING SYSTEM The Parking System currently consists of approximately 5,105 parking spaces located at various parking facilities in 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 21.38 (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 100% 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 2,051 permit holders. The largest customer for the monthly permit parking is the University of Iowa with 615 permits. There are currently over 2,000 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 Graduate Hotel in the amount of $8,500.00 per month and with the Hotel Vetro in the amount of $2,125.00 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 underlying economic growth and employment base of the City continues to contribute to increased demand. Parking System Rates and Charges: Rates for the Parking System are set by the City Council. Parking System rates are reviewed annually. The rates vary by facility and the hourly and monthly rates and charges as approved by the City Council are listed below by facility. These rates include the most recent hourly rate adjustments that were approved by the City Council on June 4, 2013 and became effective July 1, 2013 and the most recent monthly permit rate adjustments that were approved by the City Council became effective July 1, 2017. Parking Facilities: The Parking System consists of 2 cashiered garages and 3 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 178 Rates Hourly $1.00 per hour, with first hour free Monthly $85.00 per month City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 22 Changes in Capitol Street Garage rates over the last ten fiscal years: Hourly Monthly 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 *2018 Monthly Rate increase from $80.00 to $85.00 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 264 Rates Hourly $1.00 per hour, with first hour free Monthly $85.00 per month Changes in Dubuque Street Garage rates over the last ten fiscal years: Hourly Monthly 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 ** 2018 Monthly Rate increase from $80.00 to $85.00 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 261 Rates Hourly $0.75 per hour Monthly $85.00 per month City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 23 Changes in Chauncey Swan Garage rates over the last ten fiscal years: Hourly Monthly 2010 0% 17% 2011 0% 14% 2012 0% 0% 2013 0% 0% 2014 25% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% **2018 Monthly Rate increase from $80.00 to $85.00 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 266 Rates Hourly $1.00 per hour, with first hour free Monthly $85.00 per month Changes in Tower Place Garage rates over the last ten fiscal years: Hourly Monthly 2010 0% 7% 2011 0% 0% 2012 0% 0% 2013 0% 0% 2014* 33% 0% 2015 0% 0% 2016 0% 0% 2017 0% 0% 2018** 0% 6.3% 2019 0% 0% *2014 Hourly Rate increase from $0.75 to $1.00 but the first hour free also started in 2014 **2018 Monthly Rate increase from $80.00 to $85.00 Harrison Street Garage Constructed 2017 Address 175 E. Harrison Street Description Located on a parcel confined by Harrison Street to the north, Sabin Townhomes to the east, Prentiss St to the south, and MidWest One to the west. Access This is an automated facility with one entry lane and two exit lanes off of Harrison Street. Spaces 600 Monthly Permits 302 Rates Hourly $0.75 per hour Monthly $85.00 per month City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 24 Changes in Harrison Street Garage rates over the last ten fiscal years: Hourly Monthly 2017* 100% 100% 2018 0% 0% 2019 0% 0% *Garage was opened in fiscal year 2017. 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 1,177 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 245 Monthly Permits 59 Rates Hourly $0.75 - $1.50 per hour based on proximity to the central business district and usage. Monthly $65.00 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 206 Total Annual Permits 721 Rates Annual $90.00 per year The remainder of this page was left blank intentionally. Fiscal Year Net Revenue Annual Debt Service2 Ended Available for Ratio of June 30 Revenue Expenses1 Debt Service Principal Interest Total Coverage Parking Revenue3 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 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - Wastewater Treatment Revenue4 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 2017 13,383 6,357 7,026 3,625 985 4,610 1.52 2018 13,181 6,622 6,559 3,580 756 4,336 1.51 20198 13,548 6,840 6,708 6,135 539 6,674 1.68 Water Revenue5 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 2017 9,529 6,332 3,197 1,760 524 2,284 1.40 2018 9,838 6,949 2,889 1,455 394 1,849 1.56 2019 10,078 6,888 3,190 1,510 280 1,790 1.78 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. 8 Ratio of Coverage excludes the amount called early of $2,670,000. CITY OF IOWA CITY, IOWA SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) City of Iowa City, Johnson County, Iowa Fiscal Year 2019 Annual Financial and Operating Disclosure Page | 25 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. The remainder of this page was left blank intentionally. TOP TAXPAYERS LOCATED WITHIN URBAN RENEWAL AREA FY2019/20 Taxable % of Total Taxpayer Classification Valuation Taxable Valuations (1) MIDWESTONE BANK Financial Institution 18,637,551$ 4.02% RISE AT RIVERFRONT CROSSING OWNER LLC Residential & Comm. Condo Rentals 16,173,442$ 3.49% IOWA CITY HOTEL ASSOCIATES LLC Hilton Garden Inn Hotel 14,623,650$ 3.15% GRADUATE IOWA CITY OWNER, LLC Gaduate Hotel 13,609,404 2.94% OC GROUP LC Old Capital Mall 9,915,912 2.14% RIVERFRONT CROSSING HOSPITALITY OWNER LLC Residential & Comm. Condo Rentals 9,211,257 1.99% PLAZA TOWERS LLC Residential & Comm. Condo Rentals 8,488,241 1.83% MOEN, MARC B Residential & Comm. Condo Rentals 8,175,475 1.76% FIRST NATIONAL BANK IOWA CITY Financial Institution 7,915,158 1.71% ICF LLC Residential & Comm. Condo Rentals 7,232,307 1.56% Total 113,982,397$ 24.59% (1) The Total Taxable Valuation in the Urban Renewal Area for 1/1/2018 for fiscal year 2019-20 is $463,563,686. TAX INCREMENT TAX RATES FY2012-13 FY2013-14 (1)FY2014-15 (1)FY2015-16 (1)FY2016-17 (1)FY2017-18 (1)FY2018-19 (1)FY2019-20 (1) Total City Tax Rate 39.49917$ 38.63862$ 38.52756$ 38.81115$ 38.74878$ 38.60513$ 39.16292$ 38.60077$ City Debt Service (4.44287) (4.02965) (4.12963) (3.92833) (3.82846) (3.57846) (3.22846) (2.97846) Iowa City CSD Debt Service (0.69729) (0.63500) (0.59831) (0.58612) (0.55017) (0.52868) (1.95540) (1.44867) 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) (0.10140) (0.12733) (0.06273) Kirkwood Debt Service (0.20000) (0.20000) (0.20000) (0.27005) (0.21003) (0.25000) (0.25000) (0.25000) Johnson County Debt Service (0.62813) (1.61074) (2.05908) (1.77673) (2.00829) (2.13947) (2.24196) (2.25950) Tax Increment Tax Rate 31.86088$ 30.36918$ 29.78504$ 30.49001$ 30.41114$ 30.33712$ 29.68977$ 29.93141$ Iowa City Downtown SSMID (2)2.00000 2.00000 2.00000 2.00000 1.79500 2.00000 2.00000 2.00000 Tax Increment Tax Rate in SSMID 33.86088$ 32.36918$ 31.78504$ 32.49001$ 32.20614$ 32.33712$ 31.68977$ 31.93141$ (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 Chauncey 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 359,905,681 140,030,863 219,874,818 6,564,472 0 226,439,290 23,992,851 1/1/2017 FY 2019 407,922,479 119,175,408 288,747,071 6,691,956 2,040,000 297,479,027 46,941,691 1/1/2018 FY 2020 463,307,274 134,766,543 328,540,731 6,796,297 6,399,369 341,736,397 72,764,197 1/1/2019 FY 2021 463,307,274 134,766,543 328,540,731 6,796,297 16,345,771 351,682,799 19,668,135 1/1/2020 FY 2022 463,307,274 134,766,543 328,540,731 6,796,297 30,128,234 365,465,262 51,967,983 1/1/2021 FY 2023 463,307,274 134,766,543 328,540,731 6,796,297 30,128,234 365,465,262 50,884,506 1/1/2022 FY 2024 463,307,274 134,766,543 328,540,731 6,796,297 30,128,234 365,465,262 49,624,959 1/1/2023 FY 2025 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 48,527,450 1/1/2024 FY 2026 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 47,586,966 1/1/2025 FY 2027 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 42,454,565 1/1/2026 FY 2028 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 38,266,323 1/1/2027 FY 2029 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 38,003,388 1/1/2028 FY 2030 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 37,880,608 1/1/2029 FY 2031 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 37,730,431 1/1/2030 FY 2032 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 37,717,902 1/1/2031 FY 2033 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,646,735 1/1/2032 FY 2034 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,665,111 1/1/2033 FY 2035 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,658,429 1/1/2034 FY 2036 364,947,546 92,742,995 272,204,551 6,796,297 30,128,234 309,129,082 30,626,689 (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 5,942,677 805,965 273,412 1,079,377 204,035 273,173 307,715 784,923 294,454 1,119,821 12.45 1.00 1/1/2016 FY 2018 226,439,290 23,992,851 30.33712 6,869,516 727,874 392,552 1,120,426 207,345 384,150 229,624 821,119 299,307 1,419,128 11.61 1.00 1/1/2017 FY 2019 297,479,027 46,941,691 29.68977 8,832,084 1,393,688 276,767 1,670,455 205,185 384,150 244,454 833,789 836,666 2,255,794 14.99 1.00 1/1/2018 FY 2020 341,736,397 72,764,197 29.93141 10,228,652 2,177,935 117,620 2,295,555 207,485 384,150 1,703,920 2,295,555 0 2,255,794 17.29 1.00 1/1/2019 FY 2021 351,682,799 19,668,135 29.93141 10,526,362 588,695 0 588,695 204,545 384,150 0 588,695 0 2,255,794 17.88 1.00 1/1/2020 FY 2022 365,465,262 51,967,983 29.93141 10,938,891 1,555,475 0 1,555,475 206,325 1,349,150 0 1,555,475 0 2,255,794 7.03 1.00 1/1/2021 FY 2023 365,465,262 50,884,506 29.93141 10,938,891 1,523,045 0 1,523,045 207,845 1,315,200 0 1,523,045 0 2,255,794 7.18 1.00 1/1/2022 FY 2024 365,465,262 49,624,959 29.93141 10,938,891 1,485,345 0 1,485,345 203,945 1,281,400 0 1,485,345 0 2,255,794 7.36 1.00 1/1/2023 FY 2025 309,129,082 48,527,450 29.93141 9,252,669 1,452,495 0 1,452,495 204,745 1,247,750 0 1,452,495 0 2,255,794 6.37 1.00 1/1/2024 FY 2026 309,129,082 47,586,966 29.93141 9,252,669 1,424,345 0 1,424,345 205,095 1,219,250 0 1,424,345 0 2,255,794 6.50 1.00 1/1/2025 FY 2027 309,129,082 42,454,565 29.93141 9,252,669 1,270,725 0 1,270,725 204,975 1,065,750 0 1,270,725 0 2,255,794 7.28 1.00 1/1/2026 FY 2028 309,129,082 38,266,323 29.93141 9,252,669 1,145,365 0 1,145,365 204,365 941,000 0 1,145,365 0 2,255,794 8.08 1.00 1/1/2027 FY 2029 309,129,082 38,003,388 29.93141 9,252,669 1,137,495 0 1,137,495 203,245 934,250 0 1,137,495 0 2,255,794 8.13 1.00 1/1/2028 FY 2030 309,129,082 37,880,608 29.93141 9,252,669 1,133,820 0 1,133,820 206,770 927,050 0 1,133,820 0 2,255,794 8.16 1.00 1/1/2029 FY 2031 309,129,082 37,730,431 29.93141 9,252,669 1,129,325 0 1,129,325 204,925 924,400 0 1,129,325 0 2,255,794 8.19 1.00 1/1/2030 FY 2032 309,129,082 37,717,902 29.93141 9,252,669 1,128,950 0 1,128,950 207,800 921,150 0 1,128,950 0 2,255,794 8.20 1.00 1/1/2031 FY 2033 309,129,082 30,646,735 29.93141 9,252,669 917,300 0 917,300 0 917,300 0 917,300 0 2,255,794 10.09 1.00 1/1/2032 FY 2034 309,129,082 30,665,111 29.93141 9,252,669 917,850 0 917,850 0 917,850 0 917,850 0 2,255,794 10.08 1.00 1/1/2033 FY 2035 309,129,082 30,658,429 29.93141 9,252,669 917,650 0 917,650 0 917,650 0 917,650 0 2,255,794 10.08 1.00 1/1/2034 FY 2036 309,129,082 30,626,689 29.93141 9,252,669 916,700 0 916,700 0 916,700 0 916,700 0 2,255,794 10.09 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.