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HomeMy WebLinkAbout2021-04-20 ResolutionItem Number: 6.d. r � � At + at1Mw��al +•ate_ CITY OF IOWA CITY www.icgov.org April 20, 2021 Resolution to issue Cigarette Permit to the following: 1. Omega Puff LLC, dba The Konnexion, 106 S. Linn St. ATTACHMENTS: Description Cigarette Resolution Prepared by: City Clerk's Office, 410 E. Washington St., Iowa City, Lk 52240 (319) 356-5043 Resolution Number: 21-95 Resolution to Issue Cigarette Permits Whereas, the following firms and persons have made an application and paid the taxes required by law for the sale of cigarettes, tobacco, nicotine and vapor products. Now, Therefore, be it Resolved by The City Council of Iowa City, Iowa, That: the applications be granted and the City Clerk is hereby directed to issue a permit to the following named persons and firms to sell cigarettes, tobacco, nicotine and vapor products: The Konnexion - 106 S. Linn St. Passed and approved this 20th day of April 2021 or pproved by 0 Attest: ' City Clerk City Attorney's Office It was moved by salih and seconded by Taylor the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: X Bergus X Mims X Salih X Taylor X Teague X Thomas X Weiner Item Number: 7.a. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution Naming Depositories. Prepared By: Brian Cover, Senior Accountant Reviewed By: Dennis Bockenstedt, Finance Director Fiscal Impact: No impact Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: The City of Iowa City maintains a list of financial institutions authorized to be depositories of the city's funds. The list that is on file needs to be updated to reflect changes that have occurred. Background /Analysis: The MidWestOne Bank maximum balance is being raised from $100,000,000 to $150,000,000 to accommodate increased investments. The resolution naming depositories being presented would update the list of financial institutions that the City of Iowa City maintains. ATTACHMENTS: Description Resolution Prepared by: Dennis Bockenstedt, Finance Director, 410 E. Washington St., Iowa City, IA 52240 (319)356-5053 Resolution No. 21-96 Resolution Naming Depositories Now therefore, be it resolved by the city council of the City of Iowa City, Iowa that the City of Iowa City, in Johnson County, Iowa, approves the following list of financial institutions to be depositories of the City of Iowa City funds in conformance with applicable provisions of Iowa Code Chapter 12C.2. The Finance Director is hereby authorized to deposit the City of Iowa City funds in amounts not to exceed the maximum approved for each respective financial institution as set out below. Maximum Balance Maximum Balance Depository in effect under in effect under Name Location of Home Office Local Location prior resolution this resolution U.S. Bank N.A. 800 Nicollet Mall 204 E Washington St 65,000,000.00 65,000,000.00 Minneapolis, MN 55402 Iowa City, IA 52240 MidWestOne Bank Hills Bank & Trust Co. West Bancorporation, Inc. Bank of the West Wells Fargo Bank, N.A. Green State Credit Union CBI Bank & Trust Farmers & Merchants Savings Bank Two Rivers Bank & Trust 102 S Clinton St Same Iowa City, IA 52244-170( 131 Main St 201 S Clinton St Hills, IA 52235 Iowa City, IA 52240 1601 22nd St., Suite 209 1910 Lower Muscatine Rd West Des Moines, IA 50266 Iowa City, IA 52240 P.O. Box 73850 800 22nd Ave Cedar Rapids, IA 52407-3850 Coralville, IA 52241 666 Walnut St Des Moines, IA 50309 2355 Landon Road North Liberty, IA 52317 140 Holiday Rd Coralville, IA 52241 200 N Devoe Lone Tree, IA 52755 222 N Main St Burlington, IA 52601 Cedar Rapids Bank & Trust 201 1 st St SE Cedar Rapids, IA 52401 Bankers Trust 221 Third Ave SE Cedar Rapids, IA 52406 NXT Bank 119 2nd St, Ste 100 Coralville, IA 52241 103 E College St Iowa City, IA 52240 500 Iowa Ave Iowa City, IA 52244-2240 Same 2235 Mormon Trek Blvd Iowa City, IA 52246 3292 Ridgeway Dr, Ste A Coralville, IA 52241 Same Same Same 100,000,000.00 150,000,000.00 25,000,000.00 25,000,000.00 35,000,000.00 35,000,000.00 75,000,000.00 75,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 15,000,000.00 15,000,000.00 15, 000,000.00 15,000,000.00 15, 000,000.00 15, 000,000.00 50,000,000.00 50,000,000.00 20,000,000.00 50,000,000.00 10,000, 000.00 10,000,000.00 Hiawatha Bank & Trust 777 N Center Point Rd Same 2,000,000.00 2,000,000.00 Hiawatha, IA 52233 Great Weston Bank 225 South Main Ave 655 Community Dr 100,000,000.00 100,000,000.00 Sioux Falls, SD 57104 North Liberty, IA 52317 C:\Users\mcookVAppData\Local\Microsoft\Windows\INetCache\Content.Outlook\47FC6UBO\Bank resolution Apr 20 2021.xis Page 1 Resolution No. 21-96 Page 2 Regions Bank The Bancorp 8182 Maryland Ave, 11th Floor 510 A Ave Clayton, MO 63105 Vinton, IA 52349 100,000,000.00 409 Silverside Rd, Ste 105 None 1,000,000.00 Wilmington, DE 19809 Alpine Bank 2200 Grand Ave None 1,000,000.00 Glenwood Springs, CO 81601 Passed and approved this 20th day of Aoril 2021 Attest: City Clerk 100,000,000.00 1,000,000.00 1,000,000.00 C:\Users\mcooktAppData\Local\Microsoft\Windows\INetCache\Content.Outlook\47FC6UBO\Bank resolution Apr 20 2021.)ds Page 2 Resolution No. 21-96 Page 3 It was moved by Salih and seconded by Taylor the Resolution be adopted, and upon roll call there were: AYES: NAYS ABSENT: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 7.b. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT April 20, 2021 Resolution Authorizing the Redemption of Outstanding Taxable Urban Renewal Revenue Bonds, Series 2012D, dated November 29, 2012. Prepared By: Dennis Bockenstedt, Finance Director Reviewed By: Ashley Monroe, Assistant City Manager Fiscal Impact: Interest savings of $415,035 Recommendations: Staff: Approval 1 •1 u . " ► /G1 Attachments: Resolution Executive Summary: Adopted as part of the Fiscal Year 2021 budget, the City is planning to call the outstanding 2012D Taxable Urban Renewal Revenue bonds in early on June 1, 2021 using Debt Service Fund fund balance derived from tax increment financing revenues. Background /Analysis: The City issued $2,655,000 in Taxable Urban Renewal Revenue bonds on November 12, 2012 to provide a grant for the construction of the Park@201 building on the pedestrian mall. The assessed valuation of this site prior to construction was $569,520, and the current assessed valuation is $11,456,520. The current taxable valuation is $7,253,186. There is currently $1,985,000 in outstanding bonds from the 2012D bond issue with interest rates ranging from 2.30% to 3.90%. The final maturity for this issue is June 1, 2032. The City has accumulated tax increment financing revenues in the Debt Service Fund which will be utilized to call early $1,845,000 of the outstanding bonds on June 1. $140,000 of the outstanding bonds matures on June 1 and does not require an early call to redeem. By redeeming the outstanding bonds early, the City will save approximately $415,035 in interest expense and pay off the 2012D bond issue in its entirety ATTACHMENTS: Description Resolution ITEMS TO INCLUDE ON AGENDA CITY OF IOWA CITY, IOWA Taxable Urban Renewal Revenue Bonds, Series 2012D Resolution Authorizing the Redemption of Outstanding Taxable Urban Renewal Revenue Bonds, Series 20121), dated November 29, 2012. NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. April 20, 2021 The City Council of the City of Iowa City, State of Iowa, met in regular session, via electronic means pursuant to Iowa Code section 21.8, as a meeting in person is impossible or impractical due to concerns for the health and safety of council members, staff, and the public presented by COVID-19, at 6:00 P.M., on the above date. There were present Mayor Teague, in the chair, and the following named Council Members: Bergus, Mims, Salih, Taylor, Teague, Thomas, Weiner Absent: None Vacant: None 2 Council Member Salih introduced the following Resolution entitled "A RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012D, OF THE CITY OF IOWA CITY, STATE OF IOWA, DATED NOVEMBER 29, 2012, AND DIRECTING NOTICE BE GIVEN' and moved its adoption. Council Member Taylor seconded the motion to adopt. The roll was called, and the vote was: AYES: Bergus, Mims, Salih, Taylor, Teague, Thomas, Weiner NAYS: None Whereupon, the Mayor declared the resolution duly adopted as follows: Resolution 21-97 RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING TAXABLE URBAN RENEWAL REVENUE BONDS, SERIES 2012D, OF THE CITY OF IOWA CITY, STATE OF IOWA, DATED NOVEMBER 29, 2012, AND DIRECTING NOTICE BE GIVEN WHEREAS, the City did by resolution dated November 13, 2012, authorize the issuance of $2,655,000 Taxable Urban Renewal Revenue Bonds, Series 2012D, (the "Bonds") dated November 29, 2012; and WHEREAS, the Bonds are redeemable in any order of their numbering on June 1, 2021 or any date thereafter upon giving notice in the manner provided in the resolution authorizing the issuance of the Bonds; and WHEREAS, it is deemed necessary and advisable that $1,845,000 be so redeemed on June 1, 2021 and notice of redemption be given according to the terms of the resolution authorizing issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA: Section 1. That outstanding Taxable Urban Renewal Revenue Bonds, dated November 29, 2012, in the principal amount of $1,845,000, be and the same are hereby redeemed as of June 1,2021. Section 2. The Registrar and Paying Agent, U.S. Bank, N.A. is hereby authorized and directed to cause notice of such redemption be given not less than thirty (30) days prior to the redemption date and to cause notice of redemption to be mailed to the registered owners of the Bonds by ordinary mail, and to notify DTC. Section 3. The Finance Director is hereby authorized and directed to cause to be deposited in a separate fund such sum as is sufficient to pay all principal and interest on the redeemed Bonds to the date of redemption and to notify the City's dissemination agent to post the Notice of Redemption to the MSRB's website (EMMA) in searchable PDF format for the refunded Bonds in accordance with the Continuing Disclosure Certificate for the Bonds. Section 4. That the form of such notice be substantially as follows: 0 NOTICE OF THE CALL OF BONDS FOR REDEMPTION TO THE HOLDERS OF THE FOLLOWING DESCRIBED BONDS: Please take notice that the Bonds described below have been called for redemption. Owners of the Bonds should present their Bonds for payment on the redemption date. Issuer: City of Iowa City, State of Iowa Original Issue Amount: $2,655,000 Bond Issue: Taxable Urban Renewal Revenue Bonds, Series 2012D Dated Date: November 29, 2012 Redemption Date: June 1, 2021 Redemption Price: Par, plus accrued interest Bonds Called for Redemption CUSIP Bond Principal Interest Maturity Numbers Numbers Amount Rate Date 462371 AGO 7 $145,000 2.40% 2022 462371 AHS 8 $150,000 2.60% 2023 462371 AJ4 9 $150,000 2.80% 2024 462371 AK1 10 $155,000 3.00% 2025 462371 AL9 11 $160,000 3.20% 2026 462371 AM7 12 $165,000 3.40% 2027 462371 AN5 13 $170,000 3.60% 2028 462371 APO 14 $175,000 3.70% 2029 462371 AQ8 15 $185,000 3.70% 2030 462371 AR6 16 $190,000 3.75% 2031 462371 AS4 17 $200,000 3.90% 3032 5 No representation is made as to the accuracy of the CUSIP numbers printed herein or on the Bonds. The above Bonds should be presented to U.S. Bank, N.A. as Registrar. This represents a full call of the outstanding obligations. All interest will cease to accrue on the Redemption Date. U.S. Bank, N.A. (End of Notice) PASSED AND APPROVED this 20th day of April, 2021. M or ATTEST: City CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF JOHNSON ) I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the Council hereto affixed this 20th day of April, 2021. 1 City Clerk, City of I wa City, State of I wa (SEAL) 01862540-1\10714-000 Item Number: 7.c. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the 2021 Tree Planting Project. Prepared By: Scott Sovers, Asst. City Engineer Reviewed By: Jason Havel, City Engineer Juli Seydell Johnson, Parks and Recreation Director Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $203,550.00, available in the Annual Contracted Tree Planting account #R4380. Approximately $100,000 within this account will be funded by Climate Action Funds via the Emergency Levy. Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the 2021 Tree Planting Project to Nolan's Lawn Care LLC of Tiffin, Iowa. This project generally includes the supply and installation of street trees along Foster Road, Mackinaw Drive, Sugar Loaf Circle, Manitou Trail, Tranquil Bluff Trail, Mission Point Road, Arch Rock Road, Algonquin Road and Scott Boulevard. Background /Analysis: This project will enhance the City's urban tree canopy by planting 690 trees. The planting locations were identified using information from the 2017 tree inventory. A species mix will be selected that continues staff goals to diversify the number of tree species in the Community. This will help guard against catastrophic loss from any one species specific to disease or infestation. The construction cost estimate for the project was $207,000. Four (4) bids were received: Company Bid Amount Nolan's Lawn Care LLC $203,550.00 Sustainable Landscape Solutions $227,355.00 Landscaping Solutions of Iowa $262,061.71 Lewis Brothers Tree Farm $362,250.00 Based upon the bids received, staff recommends awarding the Project to Nolan's Lawn Care LLC of Tiffin, Iowa. Project Timeline: Award Date —April 20, 2021 Construction Start — May 2021 Estimated Construction Completion — November 2021 ATTACHMENTS: Description Resolution Prepared by: Scott Sovers, Asst. City Engineer, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)3565142 Resolution No. 21-98 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the 2021 Tree Planting Project Whereas, Nolan's Lawn Care LLC of Tiffin, Iowa, has submitted the lowest responsible bid of $203,550.00 for construction of the above-named project; and Whereas, funds for this project are available in the Annual Contracted Tree Planting Project account # R4380; and Whereas, the City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above- named project. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The contract for the construction of the above-named project is hereby awarded to Nolan's Lawn Care LLC, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 20th day of April. 2021 - Ap yba by Attest : i Y / City Jerk Ci Attomey's Office - 04/15/2021 It was moved by Salih and seconded by 'Taylor the Resolution be adopted, and upon roll call there were Ayes: i1 X X X X X X Nays: Absent: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 7.d. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT April 20, 2021 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Asphalt Resurfacing 2021 Project. Prepared By: Jason Reichart, Sr. Civil Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $2,602,117.59 available in the Annual Pavement Rehabilitation account #S3824; Rec Center Parking Lot Overlay & Creek Improvements account #T3109; Park Facility Parking Lot Overlay account #R4386; and Cemetery Road Asphalt Overlay account #R4145 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the Asphalt Resurfacing 2021 Project. The Plans and Project Manual were approved at the March 16th City Council Meeting, and the estimated cost of construction was $2,700,000. One (1) bid was submitted prior to the April 8th deadline, and LL Pelling Company of North Liberty, Iowa submitted the low bid of $2,602,117.59. Staff recommends awarding the construction contract for the Asphalt Resurfacing 2021 Project to LL Pelling Company. Construction is expected to be completed in Fall 2021. Background /Analysis: This is a recurring maintenance project that concentrates on asphalt resurfacing and chip sealing of various streets and parking lots throughout Iowa City. In addition to the resurfacing, this project includes storm intake repairs, repair of curb and gutter as needed, and replacement of curb ramps to meet current ADA standards. The Asphalt Resurfacing 2021 Project includes work at the following locations: Street Milling and 3 -inch Asphalt Overlay 0 North Clinton Street — Church Street to Iowa Avenue • Jefferson Street — Madison Street to Dubuque Street • South Dubuque Street — Court Street to Prentiss Street • Dearborn Street — Muscatine Avenue to Jackson Avenue • Rohret Road — Deerfield Drive to Mormon Trek Boulevard • First Avenue — Muscatine Avenue to Bradford Drive • Various locations within Oakland Cemetery Chip Seal Taft Avenue — Herbert Hoover Highway to American Legion Road Parking Lot Asphalt Overlay Robert A. Lee Recreation Center Parking Lot Mercer Park Aquatic Center West Parking Lot Forestry Maintenance Lot Project Timeline: Award Date — April 20, 2021 Construction Start — Spring 2021 Final Completion — Fall 2021 ATTACHMENTS: Description Resolution Prepared by: Jason Reichart, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)356-5416 Resolution No. 21-99 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Asphalt Resurfacing 2021 Project Whereas, LL Pelling Company of North Liberty, Iowa, has submitted the lowest responsible bid of $2,602,117.59 for construction of the above-named project; and Whereas, funds for this project are available in the Annual Pavement Rehabilitation account #53824 and; Whereas, the City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above- named project. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. The contract for the construction of the above-named project is hereby awarded to LL Pelling Company, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 20th day of Mayo, 2021 ) Ap v d by Attest: P City Clerk Ci ttorney's Office - 04/14/2021 It was moved by salih and seconded by 'Taylor the Resolution be adopted, and upon roll call there were: Ayes: X X X Nays: Absent: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 7.e. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the City Park Ball Field Improvement Project. Prepared By: Ethan Yoder, Civil Engineer Reviewed By: Juli Seydell Johnson, Parks and Recreation Director Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $164,082.66, available in the City Park Ball Field Improvements account #R4373 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the City Park Ball Field Improvements to Century Fence Company of Pewaukee, Wisconsin. This project generally includes ball field fencing at City Park. Background /Analysis: This project will add and replace aging fencing at the City Park Ball Fields. Fields 1-7 will be completely enclosed by fence, providing a better player experience. Additionally, the batting cage and foul poles will be updated and Field 8 will be reoriented for more playability. Staff has been in contact with the youth sport associations that use the fields to prioritize this as a maintenance need. The construction cost estimate for the project was $147,000.00. Three (3) bids were received: Company Bid Amount Century Fence Co. $164,082.66 Lovewell Fencing, Inc. $212,282.00 D&N Fence Co. Inc $228,836.40 Based upon the bids received, staff recommends awarding the Project to Century Fence Company of Pewaukee, Wisconsin Project Timeline: Award Date — April 20, 2021 Construction Start — July 2021 Estimated Construction Completion — November 2021 ATTACHMENTS: Description Resolution Prepared by: Ethan Yoder, Engineering Division, 410 E. Washington St., Iowa City, IA 52240 (319)3565145 Resolution No. 21-100 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the City Park Ball Field Improvement Project Whereas, Century Fence Co. of Pewaukee, Wi, has submitted the lowest responsible bid of $164,082.66 for construction of the above-named project; and Whereas, funds for this project are available in the City Park Ball Field Improvements account # R4373; and Whereas, the City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above- named project. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: The contract for the construction of the above-named project is hereby awarded to Century Fence Co., subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 20th day of April 2021 M App5v 'by Attest : fJ W City Clerk CityAttorney's Office - 04/15/2021 It was moved by Salih and seconded by Ta adopted, and upon roll call there were: Ayes: X X X X X X X Nays: Absent: Bergus Mims Salih Taylor Teague Thomas Weiner the Resolution be Item Number: 7.f. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Collector Well Nos. 3 and 4 Rehabilitation Project. Prepared By: Scott Sovers, Asst. City Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $658,064.00, available in the Collector Well 3 & 4 Rehabilitation account #W3311 Recommendations: Staff: Approval 196TOZ • o ► /G1 Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the Collector Well Nos. 3 and 4 Rehabilitation Project to Layne Christensen Company of Columbus, Ohio. The project generally includes cleaning the six (6) lateral lines within the collector wells with pre and post testing to increase the available source water production and to rebuild two (2) of the well pumps. Background /Analysis: The Iowa City Water Treatment Plant obtains most of its source water from the Iowa River via alluvial radial collector wells. The use of the alluvium as a filter makes this source water very high quality in terms of lower and stable turbidity and organic carbon, reducing the amount of treatment chemicals needed to produce high quality drinking water. Well production degrades over time due to fouling of the well screens or changes in the surrounding alluvium. In 2019, the Water Division conducted a study of the collector wells to determine their condition and maintenance needs. The result of the study was a recommendation to rehabilitate collector wells 3 and 4 first because of their relatively high source water production. The construction cost estimate for the project was $620,000. Two (2) bids were received: Company Bid Amount Layne Christensen Company $658,064.00 BCI Water Resources Group, Inc. $1,312,730.00 Based upon the bids received, staff recommends awarding the Project to Layne Christensen Company of Columbus, Ohio. Project Timeline: Award Date — April 20, 2021 Construction Start — May 2021 Estimated Construction Completion — May 2022 ATTACHMENTS: Description Resolution Prepared by: Scott Sovers, Asst. City Engineer, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319)356-5142 Resolution No. 21-101 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Collector Well Nos. 3 and 4 Rehabilitation Project Whereas, Layne Christensen Company of Columbus, Ohio has submitted the lowest responsible bid of $658,064.00 for construction of the above-named project; and Whereas, funds for this project are available in the Collector Well 3 & 4 Rehabilitation account # W3311; and Whereas, the City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above- named project. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: The contract for the construction of the above-named project is hereby awarded to Layne Christensen Company, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 20th day of April 2021 rK A-Z-Ae— Ma A 5red by %/� / Attest: J )] ' �t. / `/, City Clerk City Attorney's Office – 04/15/2021 It was moved by Salih and seconded by 'Taylor the Resolution be adopted, and upon roll call there were Ayes: X X X X —X X Nays: Absent: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 7.g. 1 CITY OF IOWA CITY in � at COUNCIL ACTION REPORT April 20, 2021 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Melrose Court Sewer Improvements Project. Prepared By: Joe Welter, Sr. Civil Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $567,896.35 available in the Melrose Court Sanitary Sewer Replacement, Account Number V3146 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: This agenda item awards the construction contract for the Melrose Court Sewer Improvements Project. The project generally includes sanitary sewer, storm sewer and pavement repairs along Melrose Court. Staff recommends awarding the Contract for the Melrose Court Sewer Improvements Project to Midwest Concrete, Inc. Background /Analysis: The project limits are from Brookland Park Drive to approximately 200 feet south of the Intersection of Melrose Court and Melrose Avenue. The project includes: sanitary sewer pipes, sanitary sewer manholes, sanitary sewer service reconnection, sanitary sewer abandonment, storm sewer pipes, storm sewer intakes and manholes, storm sewer abandonment, street pavement, driveways, and sidewalk. The right-of-way along Melrose Court is 25 -feet wide. The corridor will be restored with a 20 -foot wide roadway and a five-foot wide sidewalk. The sidewalk will be along the back of curb on the west side of the roadway. Disturbances outside the right-of-way will be restored with pavement (e.g. driveways) or seeding (e.g. lawns). The engineer's estimated costs for construction of the proposed improvements was approximately $525,000. Two bids were submitted prior to the April 13, 2021 deadline: Bidder Name City Bid Midwest Concrete, Inc. Peosta, Iowa $567,896.35 All American Concrete, Inc. West Liberty, Iowa $1,016,504.20 Based on the bids received, staff recommends awarding the Contract for the Melrose Court Sewer Improvements Project to Midwest Concrete, Inc. Project Timeline: Award Date —April 20, 2021 Construction Start — May 2021 Estimated Construction Completion — September 2021 ATTACHMENTS: Description Resolution Prepared by: Joe Welter, Public Works, 410 East Washington Street, Iowa City, Iowa 52240 (319) 356-5144 Resolution No. 21-102 Resolution awarding contract and authorizing the Mayor to sign and the City Clerk to attest a contract for construction of the Melrose Court Sewer Improvements Project. Whereas, Midwest Concrete, Inc. of Peosta, Iowa, has submitted the lowest responsive, responsible bid of $567,896.35 for construction of the above-named project; and Whereas, funds for this project are available in the Melrose Court Sanitary Sewer Replacement, Account Number V3146; and Whereas, the City Engineer and City Manager are authorized to execute change orders according to the City's Purchasing Policy as they may become necessary in the construction of the above- named project. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that The contract for the construction of the above-named project is hereby awarded to Midwest Concrete, Inc., subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. 2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for construction of the above-named project, subject to the condition that awardee secure adequate performance and payment bond, insurance certificates, and contract compliance program statements. Passed and approved this 20th day of 2021 ,.," y, Approv I b Attest A C11LG✓ Ci Clerk City Attorney's Office (Sara Greenwood Hektoen - 04/15/2021 It was moved by Salih and seconded by Taylor the Resolution be adopted, and upon roll call there were: Ayes: Nays: Absent: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 7.h. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT April 20, 2021 Resolution authorizing the Mayor to sign an Iowa Department of Transportation Agreement for Maintenance and Repair of Primary Roads in Municipalities. Prepared By: Ron Knoche, Public Works Director Reviewed By: Geoff Fruin, City Manager Fiscal Impact: None Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Agreement Executive Summary: The Agreement for Maintenance and Repair of Primary Roads in Municipalities outlines the maintenance responsibilities of the Iowa Department of Transportation (laDOT) and the City of Iowa City for primary road extensions in Iowa City. This agreement is required to be renewed every five years. Staff recommends Council adopt the resolution to authorize the mayor to sign the maintenance agreement and the Public Works Director to sign supplementals to the agreement Background /Analysis: The IaDOT has primary roads extensions within the Iowa City corporate limits and the IaDOT and the City have joint jurisdiction over these primary road extensions. The Iowa Code and Administrative Rules identify the responsibilities of the IaDOT and the City over these primary road extensions. This agreement is in accordance with the Iowa Code and Administrative Rules regarding the maintenance, repair and minor reconstruction of the primary roads within the corporate boundaries. This is the standard agreement the IaDOT uses for all municipalities, but there are two items that are unique to Iowa City. The City is responsible for the lighting at the interchanges of Highway 218 and Highway 1 and Highway 218 and Melrose Avenue. The City, University of Iowa and the IaDOT also have a separate agreement for the pedestrian bridges over Highway 6 at Burlington Street and Iowa Avenue. These unique items are identified in the agreement. This agreement will be in effect from July 1, 2021 until June 30, 2026. This resolution will authorize the Mayor to sign the maintenance agreement and the Public Works Director to sign supplementals to the maintenance agreement. The City and the IaDOT negotiate supplementals to this agreement as needed. An example of a supplemental agreement is winter maintenance for sections of Highway 1 through Iowa City. Through this supplemental, the IaDOT reimburses the City based on the lane miles plowed. ATTACHMENTS: Description Resolution Agreement Prepared by: Ronald Knoche, Public Works Director, 410 E. Washington St., Iowa City, IR 52240 (319) 356-5138 RESOLUTION NO. 21-103 Resolution authorizing the Mayor to sign an Iowa Department of Transportation Agreement for Maintenance and Repair of Primary Roads in Municipalities Whereas, the City of Iowa City, Iowa has negotiated an agreement for maintenance and repair of primary roads within the corporate limits with the Iowa Department of Transportation; and Whereas, this agreement outlines the responsibilities for maintenance and repair of the primary roads within the corporate limits of the City during the period of July 1, 2021 through June 30, 2026; and Whereas, the City Council deems it in the public interest to enter into the agreement with the Iowa Department of Transportation. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. It is in the public interest to enter into the above mentioned agreement attached hereto, and the agreement is hereby approved as to form and content. 2. The Mayor is authorized to sign the agreement between the City of Iowa City and the Iowa Department of Transportation. 3. The Public Works Director is authorized to sign any supplementals to this agreement. Passed and approved this 20th day of April 2021. M&OR Approved by ATTEST: Y -L�OLO J'a'. 'ILV CITY CLERK Cit omey's Office - 04t1 a 2021 - It was moved by Salih and seconded by Taylor the Resolution be AYES: NAYS: ABSENT: x Bergus x Mims x Salih x Taylor x Teague x Thomas x Weiner FO=810004,v 05-11 1'�Oiowa Department of Transportation VAgreement for Maintenance and Repair of Primary Roads in Municipalities This Agreement made and entered into by and between the Municipality of Iowa City , Johnson County, Iowa, hereinafter referred to as the Municipality, and the Iowa Department of Transportation, Ames, Iowa, hereinafter referred to as the Department. AGREEMENT: In accord with Provisions of Chapter 28E, Sections 306.3, 306.4, 313.3-5, 313.21-.23, 313.27, 313.36, 314.5, 321.348 and 384.76 of the Code of Iowa and the Iowa Administrative Rules 761 — Chapter 150 (IAC) the Municipality and Department enter into the following agreement regarding maintenance, repair and minor reconstruction of the primary roads within the boundaries of the Municipality. I. The Department shall maintain and repair: A. Freeways (functionally classified and constructed) 1. Maintain highway features including ramps and repairs to bridges. 2. Provide bridge inspection. 3. Highway lighting. Responsibility for energy and maintenance costs for US 218 lighting at IA 1 and Melrose Avenue interchanges will be accord in Iowa D.O.T. Agreement No. 84-14-088. B. Primary Highways — Urban Cross -Section (curbed) (See Sec. ILA) 1. Pavement: Maintain and repair pavement and subgrade from face of curb to face of curb (excluding parking lanes, drainage structures, intakes, manholes, public or private utilities, sanitary sewers and storm sewers). 2. Traffic Services: Provide primary road signing for moving traffic, pavement marking for traffic lanes, guardrail, and stop signs at intersecting streets. 3. Drainage: Maintain surface drainage within the limits of pavement maintenance described in I.B.1 above. 4. Snow and Ice Removal: Plow traffic lanes of pavement and bridges and treat pursuant to the Department's policy. 5. Vehicular Bridges: Structural maintenance and painting as necessary. 6. Provide bridge inspection. C. Primary Highways — Rural Cross -Section (uncurbed) (See II.B) Maintain, to Department standards for rural roads, excluding tree removal, sidewalks, and repairs due to utility construction and maintenance. D. City Streets Crossing Freeway Rights of Way (See II.C) 1. Roadsides within the limits of the freeway fence. 2. Surface drainage of right of way. 3. Traffic signs and pavement markings required for freeway operation. 4. Guardrail at piers and bridge approaches. 5. Bridges including deck repair, structural repair, berm slope protection and painting. 6. Pavement expansion relief joints and leveling of bridge approach panels. ll. The Municipality shall maintain and repair: A. Primary Highways — Urban Cross -Section (curbed) (See Sec. I.B) Pavement: Maintain and repair pavement in parking lanes, intersections beyond the limits of state pavement maintenance; curbs used to contain drainage; and repairs to all pavement due to utility construction, maintenance and repair. 2. Traffic Services: Paint parking stalls, stop lines and crosswalks. Maintain, repair and provide energy to traffic signals and street lighting. 3. Drainage: Maintain storm sewers, manholes, intakes, catch basins and culverts used for collection and disposal of surface drainage. 4. Snow and ice removal: Remove snow windrowed by state plowing operations, remove snow and ice from all areas outside the traffic lanes and load or haul snow which the Municipality considers necessary. Remove snow and ice from sidewalks on bridges used for pedestrian traffic. 5. Maintain sidewalks, retaining walls and all areas between curb and right-of-way line. This includes the removal of trees as necessary and the trimming of tree branches as necessary. 6. Clean, sweep and wash streets when considered necessary by the Municipality. 7. Maintain and repair pedestrian overpasses and underpasses including snow removal, painting and structural repairs. Maintenance and repair of pedestrian overpasses at Iowa Avenue and Burlington Street should be in accordance with MOU 2003-16-071, B. Primary Highways — Rural Cross -Section (uncurbed) (See Sec. I.C) 1. Maintain and repair highway facilities due to utility construction and maintenance. 2. Removal of trees as necessary and the trimming of tree branches as necessary. 3. Maintain sidewalks. C. City Streets Crossing Freeway Rights of Way (See LD) 1. All pavement, subgrade and shoulder maintenance on cross streets except expansion relief joints and bridge approach panel leveling. 2. Mark traffic lanes on the cross street. 3. Remove snow on the cross street, including bridges over the freeway. 4. Clean and sweep bridge decks on streets crossing over freeway. 5. Maintain all roadside areas outside the freeway fence. B. Maintain pedestrian overpasses and underpasses including snow removal, painting, lighting and structural repair. III. The Municipality further agrees: A. That all traffic control devices placed by the Municipality on primary roads within the Municipal boundaries shall conform to the "Manual on Uniform Traffic Control Devices for Streets and Highways," B. To prevent encroachment or obstruction within the right of way, the erection of any private signs on the right of way, or on private property which may overhang the right of way and which could obstruct the view of any portion of the road or the traffic signs or traffic control devices contrary to Section 318.11 of the Code of Iowa. C. To comply with all current statutes and regulations pertaining to overlength and overweight vehicles using the primary roads, and to issue special permits for overlength and overweight vehicles only with approval of the Department. D. To comply with the current Utility Accommodation Policy of the Department. E. To comply with the access control policy of the Department by obtaining prior approval of the Department for any changes to existing entrances or for the construction of new entrances. IV. Drainage district assessments levied against the primary road within the Municipality shall be shared equally by the Department and the Municipality. V. Major construction initiated by the Department and all construction initiated by the Municipality shall be covered by separate agreements. VI. The Department and the Municipality may by a separate annual Supplemental Agreement, reallocate any of the responsibilities covered in Section I of this agreement. VII. This Agreement shall be in effect for a five year period from July 1, 2021 to June 30, 2026 IN WITNESS WHEREOF, The Parties hereto have set their hands, for the purposes herein expressed, on the dates indicated below. City of Iowa City MUNICIPALITY By Date 04/20/2021 IOWA DEPARTMENT OF TRANSPORTATION BY (2&m" District Engineer Date 05/06/2021 Item Number: 7.i. 1 CITY OF IOWA CITY ��.:. -dry in � at COUNCIL ACTION REPORT April 20, 2021 Resolution authorizing contract reimbursing CRANDIC for work performed on the Burlington and Madison Intersection Improvements Project. Prepared By: Jason Reichart, Sr. Civil Engineer Reviewed By: Jason Havel, City Engineer Ron Knoche, Public Works Director Geoff Fruin, City Manager Fiscal Impact: $181,422.75 available in the Burlington & Madison Intersection Improvements account #S3834 Recommendations: Staff: Approval Commission: N/A Attachments: Resolution Executive Summary: The City entered into an agreement with Cedar Rapids and Iowa City Railway Company (CRANDIC) to complete public improvements on railroad right-of-way as part of the Burlington and Madison Intersection Improvements Project. As detailed in the agreement, the City would reimburse CRANDIC for at -grade railroad crossing improvements in the estimated amount of $131,583.41. However, during construction, extensive sanitary sewer repairs required the removal and replacement of additional railroad infrastructure, thereby expanding the scope of services provided by CRANDIC and increasing the cost to be reimbursed by the City to $181,422.75. This resolution requests Council authorization to pay the actual reimbursement cost of the improvements, as required by the current Purchasing Policy for amounts that exceed $150,000. Background /Analysis: The Burlington and Madison Intersection Improvements Project included the widening of Burlington Street from Madison Street to Front Street to include continuous buffered bike lanes from Madison Street to Riverside Drive. The project also included traffic signal and pedestrian signal improvements, ADA sidewalk improvements, and public utility improvements at the Burlington Street and Madison Street intersection. The City planned to replace three brick sanitary manholes in Burlington Street as part of the public utility improvements. While working on the first manhole at South Front Street, the contractor discovered an issue with the sanitary sewer pipe crossing Burlington Street below the railroad crossing. The City cleaned and televised the line and confirmed the pipe was not flowing correctly because of a severe sag. Engineering and wastewater staff determined it would be best to replace this pipe since the railroad tracks were removed and the contractor was replacing the manhole on the upstream end of the pipe as well. This additional work required the removal and replacement of additional railroad infrastructure, adding additional rail outage and work time to the contract. The revised cost to be reimbursed by the City is now $181,422.75. According to the City's Purchasing Policy, contracts exceeding $150,000 require authorization from City Council. ATTACHMENTS: Description Resolution Prepared by: Jason Reichert, Public Works, 410 E. Washington St., Iowa City, IA 52240, (319)3565436 Resolution No. 21-104 Resolution authorizing contract reimbursing CRANDIC for work performed on the Burlington and Madison Intersection Improvements Project. Whereas, the City entered into an agreement on September 26, 2019 with Cedar Rapids and Iowa City Railway Company (CRANDIC) to construct public improvements on railroad right-of-way as part of the Burlington and Madison Intersection Improvements Project; and Whereas, public improvements included at grade railroad crossing improvements to be completed by CRANDIC and paid for by the City in conjunction with the project; and Whereas, reimbursement was negotiated as part of the original agreement with the cost of CRANDIC's work being estimated at $131,583.41; and Whereas, during construction, extensive sanitary sewer repairs required the removal and replacement of additional railroad infrastructure thereby expanding the scope of services provided by CRANDIC; and Whereas, due to this additional work, the cost of improvements is now $181,422.75; and Whereas, the current purchasing policy requires expenditures exceeding $150,000 to be authorized by the City Council; and Whereas, funds for this project are available in the Burlington & Madison Intersection Improvements account #53834; and Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that: 1. The contract reimbursing CRANDIC for their work on the above-named project is authorized at $181,422.75. 2. The City Engineer and City Attorney are authorized to take whatever reasonable steps are necessary to effectuate the contract and reimbursement. Passed and approved this 20th day of April 2021. M or Attest: 0 Appr City Clerk City Attorneys Office (Eric Goers — 04/15/2021) Resolution No. Page 2 21-104 It was moved by Salih and seconded by Taylor the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x Bergus x Mims x Salih x Taylor x Teague x Thomas x Weiner Item Number: 8.a. �r p- CITY OE IOWA CITY www.iogov.org April 20, 2021 Motion setting a public hearing for May 4, 2021 on an ordinance to amend Title 14 Zoning to allow the continuance and expansion of nonconforming drinking establishments when located on property in a Historic Overlay District (OHD) zone and where vacant for at least two years. (REZ20-0015) ATTACHMENTS: Description Staff Memo for Planning & Zoning Commission Date: April 15, 2021 CITY OF IOWA CITY MEMORANDUM To: Planning & Zoning Commission From: Kirk Lehmann, Associate Planner, Neighborhood & Development Services Re: Zoning Code Amendment (REZ20-0015) to amend standards for nonconforming drinking establishments Introduction In 2009, the City began regulating the location of bars and taverns with Ordinance 09-4341 by creating a minimum separation distance requirement of 500 feet between drinking establishments. The goal was to mitigate negative externalities associated with an over - concentration of these uses downtown, such as alcohol overconsumption, underage drinking, nuisances, and crime. The City further refined the ordinance in 2013 by limiting the separation distance requirement to only apply in the University Impact Area and Riverfront Crossings District (see Map 1) due to economic impacts and it being unlikely that an unhealthy concentration of drinking establishments would develop in other commercial areas in the City. Existing drinking establishments that did not conform to these regulations were allowed to continue as long as the use did not change and their liquor license did not lapse, or was not revoked or discontinued, for more than one year. Through attrition, this would reduce the density of these uses downtown. As a legal nonconforming use, existing drinking establishments could not expand except as specifically allowed by Code. For example, sidewalk cafes were defined so as not to be an expansion of such uses. In 2015, rooftop cafes were added as an allowable expansion for nonconforming drinking establishments following approval of a special exception. Since adoption, these regulations have helped prevent the further proliferation of drinking establishments downtown. It has also led to a greater mix of downtown businesses, including new retail and office uses. However, the separation distance requirement has had some unintended economic impacts. These impacts can be exacerbated for historic buildings where extensive rehabilitation is required. In some cases, storefronts in historic buildings have remained vacant for years. These factors somewhat limit the economic potential of downtown. As was the case for other amendments to the separation distance requirements, staff developed the proposed zoning code text amendment (REZ20-0015) to address these unintended economic impacts and to support other goals of the comprehensive plan, including historic preservation. Concern was initially raised by the developers of the Tailwind project, which will help preserve important historic resources located at 109-121 E. College Street. These historic buildings will be renovated and occupied with new uses. One of those, a brewpub and restaurant that wishes to operate as a drinking establishment, would occupy the space of the former Fieldhouse bar that has been vacant for several years. The proposed amendment (Attachment 1) would allow the continuance of nonconforming drinking establishments where economically viable business substitutes have not been found for locally designated historic buildings. This pairs historic preservation and economic development goals to reward the designation of local historic landmarks and to fill vacant storefronts through more permissive regulations regarding nonconforming drinking establishments. April 15, 2021 Page 2 Existing Provisions: The City defines drinking establishments in Section 14 -4A -4F as meeting the following criteria: 1. The principal activity of the establishment is the preparation, dispensing and consumption of food and/or beverages; and 2. The establishment is licensed by the state for the sale of alcoholic beverages for on-site consumption, as defined by Iowa Code chapter 123; and 3. The establishment is open for business on a regular basis any time between the hours of 12:00 midnight and 2:00 A.M. There are two exceptions that classify such a use as a category other than a drinking establishment. If there is nude dancing, it is considered an adult business use. If it is associated with a hospitality -oriented retail use (i.e. hotel) and has a class B liquor control license, it is considered accessory to the hospitality -oriented retail use rather than as a separate primary use. Overall, there is little flexibility in the definition of drinking establishments. In all zones where drinking establishments are allowed, they must be at least 500 feet from any other drinking establishment if located in the University Impact Area or Riverfront Crossings District. This is true whether the use is permitted provisionally following staff review or by special exception following a discretionary review by the Board of Adjustment. Where legally established prior to the adoption of the separation distance requirement, drinking establishments may continue as a nonconforming use. Almost all downtown drinking establishments are legal nonconforming uses. Legal nonconforming situations are subject to Section 14-4E-5 of the Zoning Code. The purpose of this section is not to force all nonconforming situations to be immediately brought into conformance. Rather, it is to guide future uses and development in a direction consistent with City policy, to protect the character of an area by reducing the potential negative impacts from nonconforming situations, and to bring development into compliance with the City's regulations over time. Nonconforming uses are generally subject to the following regulations: 1. Enlargement or Alteration. A nonconforming use cannot be enlarged unless allowed in the Code. Ordinary repair, maintenance, and remodeling are allowed. 2. Change of Use. A nonconforming use may be converted to another use in the same use category or to a conforming use. The Board of Adjustment may consider special exception requests to change to nonconforming uses in other use categories as long as certain requirements are met, including that the new use is of the same or lesser intensity. Once converted to a less intensive use, it may not return to the prior nonconforming use. 3. Accessory Uses. Some nonconforming accessory uses such as signs may continue as long as the principal use continues. 4. Damage or Destruction. If damaged or destroyed, the same nonconforming use may be restored within 2 years as long as the damage is not too severe. Some additional exceptions exist for uses that existed for at least 25 years prior to the damage. 5. Discontinuance. Typically, a nonconforming use that is discontinued for at least one year must revert to a conforming use. The code includes specific standards in Section 14 -5E -5G for drinking establishments that are nonconforming due to the separation distance requirement. These establishments may continue unless their liquor license lapses, is revoked or is discontinued for one year, or there are changes such that they are no longer classified as a drinking establishment. If one or both of these situations occur, the nonconforming rights cease, and the use must convert to a conforming use. The code also contains special provisions for drinking establishments, including that sidewalk cafes are not considered an expansion of a nonconforming use, and that nonconforming drinking establishments may expand to include a rooftop service area by special exception. April 15, 2021 Page 3 Proposed Amendment: To incentivize historic preservation, promote the occupation of long-term vacant storefronts, and mitigate certain economic impacts of the separation distance requirement, the proposed amendment modifies the standards that allow nonconforming drinking establishments to continue. Specifically, a drinking establishment use would be allowed to continue where: 1. The drinking establishment is on property with a Historic District Overlay (OHD) zone; and 2. The drinking establishment is in a building that has remained vacant for the previous 2 years. An OHD zone is an overlay zoning district used to designate local historic landmarks and local historic districts. This overlay protects these buildings from demolition and requires historic review for most exterior modifications. As it relates to reducing vacancies, staff believes two years is an adequate timeframe to meet the goals of the amendment while mitigating potential abuse. Where an intervening use is established after the nonconforming drinking establishment ceases operations, this provision may not be utilized. In addition, the proposed amendment would allow nonconforming drinking establishments that meet those requirements to expand into other commercial spaces on property zoned with a Historic District Overlay that have also been vacant for the previous 2 years. Similarly, requirements for rooftop service areas that prohibit expansion would be waived for properties that meet these requirements. Drinking establishments that establish rooftop service areas would still be required to follow the special exception process, which utilizes additional standards related to impacts on surrounding properties. The proposed amendment provides multiple benefits to downtown Iowa City. First, it encourages the designation of downtown properties as local historic landmarks. Being designated as a local historic landmark includes rezoning the property with a Historic District Overlay (OHD), which provides local land use protections to the historic building. At the same time, the proposed amendment may only be used where storefronts have remained vacant for at least two years. This provides an opportunity for alternative businesses to establish in the site first. Where other businesses are not viable, it allows the drinking establishment use to be continued. Table 1. Existing and Proposed Regulations for Nonconforming Drinking Establishments Existing Proposed Nonconforming drinking establishments must Nonconforming drinking establishment must cease if: cease if: - The liquor license lapses for a period - The liquor license lapses for a period of one year; or of one year, except where the - The use changes and is no longer a drinking establishment is located drinking establishment. on property zoned OHD and is in a building that has remained vacant for the previous 2 years; or - The use changes and is no longer a drinking establishment. Nonconforming drinking establishments may Nonconforming drinking establishments may expand: expand: - To include a rooftop service areas. - To include a rooftop service areas. - If the drinking establishment is zoned OHD and has been vacant for 2 years, it may expand into a Property that also meets those two criteria. April 15, 2021 Page 4 Analysis There are currently more than 100 businesses that have licenses to serve alcohol in the University Impact Area and Riverfront Crossings District. Approximately 43 of these are classified as drinking establishments, of which 38 are nonconforming. Map 1 shows the location of conforming and nonconforming drinking establishments and a 500 -foot buffer from all drinking establishments inside the University Impact Area and Riverfront Crossings District. It also shows Historic District Overlay (OHD) zones within this area. The largest concentration of nonconforming drinking establishments is downtown, followed by the Northside Marketplace. A few are also located along the S. Gilbert Street corridor. Generally, drinking establishments that are further from the downtown conform to the 500 -foot minimum separation distance requirement. Due to the separation distance requirements, most areas around downtown would not currently allow a new drinking establishment unless it is in a building where it is already established as a legal nonconforming use. Since 2009, approximately 9 nonconforming drinking establishments have lost their legal nonconforming status, and another 2 (The Mill and Union Bar) are currently vacant and may lapse if not reestablished within one year. Most of Iowa City's Historic Overlay zones, which corresponds with Historic Districts and local Historic Landmarks, are north and east of downtown, with some local landmarks scattered throughout the area. Historic zones are typically overlayed on residential rather than commercial base zones. The major exceptions are the recently designated properties at 109 through 127 E. College Street. These were made local historic landmarks as part of the Tailwinds project, which combines historic preservation and economic development efforts. The proposed amendment would allow nonconforming drinking establishments located on property zoned OHD to continue the drinking establishment use where the storefront has been vacant for at least 2 years. The amendment also allows expansion into property that meets those two criteria. After accounting for zoning and lapsed nonconforming drinking establishments, only 111 E. College Street would be eligible to use this amendment, and 109 E. College Street may become eligible if it remains vacant for a period of 2 years. That being said, many downtown buildings could be designated as local historic landmarks. Should they qualify and remain vacant for 2 years, existing nonconforming drinking establishments in these buildings may become eligible to use this provision. However, 8 of the 9 lapsed drinking establishments would not be eligible as they have had intervening uses which disqualifies them. This amendment is narrowly targeted to continue supporting the initial goals for which the separation distance ordinance was established. The amendment also facilitates the historic preservation and economic development project at 109-127 E. College Street which contains 3 nonconforming drinking establishments, the Fieldhouse which is lapsed, Martini's which is active, and the Union Bar which is vacant and is expected to lapse. One of the primary tenants of this project is anticipated to meet the criteria of a drinking establishment in the space of the former Fieldhouse, which, after the Union lapses, results in a net change of 0 drinking establishments. Approval of this amendment is needed for this project to move forward. Overall, the requirements of the proposed amendment mitigate negative externalities and prevent the further proliferation of downtown drinking establishments. It also provides powerful incentives for downtown property owners to designate their buildings as local historic landmarks, including the flexibility to have nonconforming drinking establishments expand where other businesses are not economically viable. This will have the effect of promoting both economic development and historic preservation downtown. April 15, 2021 Page 5 Map 1: Drinking Establishments & OHD Zones Near Downtown 0 SOO' Drinking EsL duffer Uniwerslty Impact Area Q RiwerfWt CroS.INS DiArict Drinking Est. NonConforMitq Conforming �Hi$WC District Overlay{ Zone Allows Prir7klrkg tisk, Historic District Overlay 2rsne DoesR-tAllaw Drinking Est. 4 4'1 INTON ,Si I RUPPERT RE] E PAft9 R.D C;HIJRII H 5 1 m M � r � q!� � ET ST ERS6N sT OE YVA9 %N GT ST FQ a � �.! a { BOWERY 5T C 0 -4 C ua z cn YJALNUT ST Iva m °RKWOC30 AVE 1 HIGHLANu AIA: Nore April 15, 2021 Page 6 Consistency with Comprehensive Plan The proposed amendment supports several related goals from the City's comprehensive plan: Preserve the historic, main street character of the Downtown, while encouraging appropriate infill development to enhance the economic viability and residential diversity of the area. Increase and diversity the property tax base by encouraging the retention and expansion of existing businesses and attracting businesses that have growth potential and are compatible with Iowa City's economy. Encourage new business development in existing core or neighborhood commercial areas. By adopting the proposed amendment, the City will continue to provide an opportunity to increase the diversity of local businesses in the existing core of the City. However, where it is shown that other business types are not economically viable, a drinking establishment use may continue beyond what would typically be allowed. In addition, the amendment encourages the designation of historic structures in the core of the City by providing benefits to buildings that are designated as local landmarks. Pairing these goals allows the City to fill vacant storefronts while simultaneously preserving the historic main street character of downtown. Staff Recommendation Staff recommends that the zoning code be amended as illustrated in Attachment 1 by allowing the continuance and expansion of nonconforming drinking establishments where they are in buildings that are zoned OHD and where those spaces have remained vacant for at least two (2) years. Attachments 1. Proposed Zoning Code Text Amendments 2. Map 1: Drinking Establishments & Historic Landmarks Near Downtown Approved by: • % Danielle Sitzman, AICP, Development Services Coordinator Department of Neighborhood and Development Services Attachment 1 Page 1 Draft Zoning Code Text Underlined text is suggested new language. Strike -through notation indicates language to be deleted. Amend 14-4C-2AA-2 as follows: 2. Additional Special Exception Approval Criteria For Nonconforming Drinking Establishments: An RSA accessory to a nonconforming drinking establishment may be allowed by special exception provided it meets the general approval criteria for special exceptions set forth in section 14-413-3 of this chapter, the approval criteria stated above for all RSAs and the additional approval criteria listed below: a. The RSA shall be located directly above and contiguous to the licensed drinking establishment. Contiguous means there may not be other uses located on floors in between the drinking establishment and the accessory RSA. b. There shall be no horizontal expansion of the licensed drinking establishment e, xcept as allowed per 14 -4E -5G; c. There shall be no increase in interior floor area or interior occupant load of the existing drinking establishment, except if necessary for required bathrooms, elevator, stairs, kitchen equipment, or other essential elements necessary to meet accessibility, building code requirements or to meet the requirements or conditions of the special exception, or except as allowed per 14 -4E -5G. Amend 14 -4E -5F as follows: F. Discontinuance Of Nonconforming Use: Except as allowed in subsection E and G of this section, a nonconforming use that is discontinued for a period of one year must revert to a conforming use or, in qualifying situations, a special exception may be applied for according to the provisions of subsection B of this section. Amend 14 -4E -5G as follows: G. Nonconforming Drinking Establishments And Alcohol Sales Oriented Retail Uses: In addition to the other provisions in this section, the following provisions apply to nonconforming drinking establishments and nonconforming alcohol sales oriented retail uses: 1. Any "drinking establishment", as defined in this title, that was legally established prior to the effective date hereof and that is nonconforming with regard to the separation requirement between said uses, as specified in this title, may continue unless one or both of the situations occur. If one or both of these conditions occur, then nonconforming rights cease and the use must convert to a conforming use: a. The liquor license lapses, is revoked or is discontinued, or the drinking establishment ceases operation, for a period of one year, except where: (1) The drinking establishment is located on property with a Historic District Overlay (OHM zone; and (2) The drinking establishment is in a building that has remained vacant for the previous two (2) consecutive years. b. There are Ghanges to the use such that the use no longer meets the definition of "drinking estabimshm There has been a change of use as defined in Section 14 -4E -5B. 2. Any "alcohol sales oriented retail use", as defined in this title, that was legally established prior to the effective date hereof that is nonconforming with regard to the separation requirement between said uses, as specified in this title, may continue unless one or both of the following situations occur. If one or both of these conditions occur, then nonconforming rights cease and the use must convert to a conforming use: a. The liquor license lapses, is revoked or is discontinued for a period of one year; or Attachment 1 Page 2 b. There are changes to the use such that the use no longer meets the definition of "alcohol sales oriented retail use". 3. For purposes of this subsection, sidewalk cafes shall not be considered an expansion of a nonconforming use. (Ord. 09-4341, 6-2-2009) 4. Nonconforming drinking establishments may expand as follows: a. Tto include a rooftop service area upon approval of a special exception pursuant to the criteria set forth in article C, "Accessory Uses And Buildings", of this chapter; and: (Ord. 15-4641, 9-15-2015) b. Where a nonconforming drinking establishment meeting the standards of 14 -5E - 5G -a expands into property with a Historic District Overlay (OHD) zone that has remained vacant for the previous two (2) consecutive years. 0 500' Drinking Est. Buffer University Impact Area 0 Riverfront Crossings District Drinking Est. Nonconforming M Conforming `§Historic District Overlay Zone Allows Drinking Est. Historic District Overlay ® Zone Doesn't Allow Drinking Est. Q 11 J o Quad Roam W NTON ST XIA West River BIuHs I RUPPERT RD ciiv Purl: Mit Q F®R f► HIGHLAND AVE A None 6 UM 5 T Cn 0 C7 z p r BOWERY 5T c r --I _ i-,Cn z --4 M p -� --I m U) 0 -4 WALNUT ST mpg N r m RKWOOD AVE Wastew. . Treotme Fora M C) � Z] HIGHLAND AVE A None 6 UM 5 T Item Number: 11. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution authorizing conveyance of a single-family home located at 2131 Taylor Drive. Prepared By: Erika Kubly, Neighborhood Services Coordinator Reviewed By: Tracy Hightshoe, Neighborhood and Development Services Director Fiscal Impact: City funds were budgeted at $35,000 for rehabilitation expenses, and up to $25,000 in federal HOME funds will be used for buyer down payment assistance. There will be no impact on the general fund for ongoing operational expenses. Recommendations: Staff: Approval 1 •OZ • 0 ► /G1 Attachments: 2129-2131 Taylor Drive photos Resolution Executive Summary: On April 6, 2021, City Council will set a public hearing for April 20, 2021 to consider a resolution authorizing conveyance of 2131 Taylor Drive as part of the South District Program. This will be the third home sold under the program. Background /Analysis: Under the South District Program, the City proposes to sell 2131 Taylor Drive for $133,500. The City acquired the duplex at 2129-2131 Taylor Drive in 2019 for $125,610 ($62,805 per unit). City funds were used to rehabilitate the home to sell to an eligible buyer. The home received a new roof, windows, doors, lighting, high efficiency furnace and air conditioner, air source heat pump water heater, long life -cycle flooring, and high efficiency appliances. Following rehabilitation, the duplex was converted to a 2 -unit condominium. The sales price of the home is $133,500. This includes $35,000 in city funds that were used to rehabilitate the property. These costs are provided to the buyer in the form of a conditional mortgage which will be forgiven over 10 years. This amount was included in the sales price to more accurately reflect the value of the property and to avoid artificially deflating home values in the neighborhood. The remaining $98,500 includes the city's purchase price, carrying costs, and rehab costs in excess of $35,000 which include adding a third bedroom in the basement. The City will be providing up to $25,000 in HOME down payment assistance. It is estimated that the homeowner will finance approximately $73,500 through a private lender to purchase the home. It was recently appraised at $145,000. The home features two bedrooms and one bathroom on the main floor with an additional bedroom in the basement. The buyers have been residents of the neighborhood for two years and are first- time home buyers. They completed a homeowner education course and counseling through Horizons. ATTACHMENTS: Description 2129-2131 Taylor Dr Photos resolution F lj I � sy r pp - 6 Before/Progress Photos: 2129-2131 Taylor Drive www.icgov.org/SouthDistrict Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319)356-5030 Resolution No. 21-105 Resolution authorizing conveyance of a single-family home located at 2131 Taylor Drive. Whereas, the South District Home Investment Partnership Program is an effort by the City to encourage home ownership and reinvestment in designated neighborhoods; and Whereas, the City purchases residential properties, rehabilitates them, and then sells them to income -eligible buyers; and Whereas, the City purchased a duplex at 2129-2131 Taylor Drive, rehabilitated it, and converted it to a 2 -unit condominium; and Whereas, the City has received an offer to purchase 2131 Taylor Drive for the principal sum of $133,500; and Whereas, this sale would provide affordable owner -occupied housing; and Whereas, following the public hearing on the proposed conveyance, the City Council approves the purchase agreement and finds that the conveyance is in the public interest. Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that: 1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to execute a warranty deed conveying the City's interest in 2131 Taylor Drive. 2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any actions necessary to consummate the conveyance required by law. Passed and approved this 20th day of o ed by .1,4( j Attorney's Office-- 0411,0021 April 2021. MM'OR ATTEST: L/,�a e '0 off 0 CITY CLERK Resolution No. 21-105 Page 2 It was moved by salih and seconded by Weiner the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Bergus Mims Salih Taylor Teague Thomas Weiner Item Number: 12. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution adopting Highway Commercial Urban Revitalization Plan. Prepared By: Wendy Ford, Economic Development Coordinator Reviewed By: Geoff Fruin, City Manager Fiscal Impact: Exemption only applies to eligible increases in property value and does not impact the current tax base. Recommendations: Staff: Approval Commission: City Council Economic Development Committee Attachments: Highway Commercial Urban Revitalization Plan Resolution Executive Summary: The Highway Commercial Urban Revitalization Plan ("Plan") utilizes an economic development tool authorized by Iowa Code Chapter 404, titled "Urban Revitalization Tax Exemptions" (URTE). This tool allows a property tax exemption on the new value created by improvements to existing or new buildings on qualifying properties within the URTE area for a period of three years. Neither the value of the land nor the original value of the building is eligible for tax exemption, and only improvements generating at least a 15% increase in building value are eligible. Background /Analysis: On March 2, 2021, Council passed a Resolution (no. 21-52) determining the necessity of and setting a public hearing for April 20, 2021 on a proposed Highway Commercial Urban Revitalization Plan. Subsequently, notice of the public hearing was published in the Iowa City Press Citizen and sent via U.S. mail to all deed holders of and occupants at addresses within the proposed boundaries. Today's Public Hearing is the final step in establishing the Highway Commercial Urban Revitalization Plan. Eligibility Areas The URTE areas designated in this Plan are generally older commercial areas along Highway 6 and Highway 1 with local, small businesses that have not had access to economic development incentives in the past and generally do not attract the kinds of projects that would be appropriate for tax increment financing. The Plan makes this economic development incentive available to commercially -taxed properties only. In the case of a multi -residential property, where a portion is taxed commercial, only the commercial portion of the property would be eligible. To be considered eligible for property tax exemption, Council must approve the projects and all improvements must increase the actual value of the property (not including land value) as of the first year for which an exemption is received by at least fifteen percent (15%). The City Assessor determines whether a project meets this criterion once improvements have been made. Questions regarding whether proposed improvements will meet this criterion should be directed to the City Assessor. The Highway Commercial Urban Revitalization Plan will be in effect for ten (10) years from the date of adoption. Tax Exemption Schedule A 100% exemption on the taxes created by the new value for three (3) years, provided the new value is at least 15% higher than the old value. The value of land is not included in this calculation. Application Procedures Prior Approval of Eligibility and Application for Tax Exemption: Prior to commencement of any Eligible I mprovements for which an owner intends to see a tax exemption allowed by this Plan, the owner shall submit a proposal for the improvement project to the City. Applicants must identify which energy savings methods they will employ with the improvement to their property, including but, not limited to, 1) LEED certified construction, 2) investment in renewable energy (e.g., solar, wind, geothermal), or 3) use of electric appliances and equipment in lieu of natural gas where possible. The City Council shall review and approve by resolution projects that comply with this Plan and Iowa Code Chapter 404. Such prior approval shall not entitle the owner to exemption from taxation until the Eligible Improvements have been completed and found to be Qualified Real Estate; however, if the proposal is not approved, the person may submit an amended proposal for the City Council to approve or reject. An application shall be filed for each new exemption claimed and approved by the City Council pursuant to Iowa Code Section 404.4. The City Assessor shall physically review each first-year application pursuant to Iowa Code Section 404.5. Staff Recommendation Staff recommends approval of this plan because it aligns with the I C2030 Comprehensive Plan, excerpts of which follow. The 2020-21 Strategic Plan includes promoting an inclusive and resilient economy throughout the City, in part, by encouraging healthy, diverse, and sustainable economic activity throughout Iowa City, taking steps to invigorate neighborhood commercial districts, creating new small neighborhood commercial nodes and supporting the growth and promotion of small locally -owned businesses, women and minority-owned businesses, and the local foods economy. I C2030: The Comprehensive Plan Update, adopted in 2013, includes three economic development goals that would be supported by implementing the Highway Commercial Urban Revitalization Plan: 1. Increase and diversify the property tax base by encouraging the retention and expansion of existing businesses and attracting businesses that have growth potential and are compatible with Iowa City's economy. 2. Encourage a healthy mix of independent, locally -owned businesses and national businesses by establishing strategies to retain and encourage growth of existing locally -owned businesses, and recognizing that small, and independently owned, local businesses are integral to Iowa City's "brand" and sense of identity. 3. Improve the environmental and economic health of the community through efficient use of resources by encouraging new business development in existing core or neighborhood commercial areas. The Comprehensive Plan also identifies environmental goals, including a goal to continue to track, measure, and reduce energy consumption and greenhouse gas emissions by identifying and seeking opportunities to create incentives for the private sector to increase energy efficiency and emission reductions through funding and building code mechanisms. Council has indicated that while economic development incentives such as tax increment financing are available in Iowa City's urban renewal areas, there are fewer opportunities to support local and small business in our neighborhood commercial areas. The adoption of the Highway Commercial Urban Revitalization Plan would serve this important segment of Iowa City's business community. For these reasons, staff recommends setting the public hearing to consider adoption of the Highway Commercial Urban Revitalization Plan. ATTACHMENTS: Description Resolution Highway Commercial Urban Revitalization Plan Page 1 of 1 U ' I i11 :Doc ID: 0290712Goo" Type: GEN Kind: HE3000TION.. :.. -... _..:...:: Recorded: 04/29/2021 at 10:06:26 AM Fee Amt: $262.00 Page 1 of 52 Johnson County Iowa Kim Painter County Recorder 9N6213 PG179-230 STATE OF IOWA ) ) SS JOHNSON COUNTY ) A~�,.�'i s NIEL- ,,g► CityoP I, Kellie K. Fruehling, City Clerk of Iowa City, Iowa, do hereby certify that the Resolution attached hereto is a true and correct copy of Resolution No. 21-106 which was passed by the City Council of Iowa City, Iowa, at a regular meeting held on the 20th day of March 2021, all as the sane appears of record in my office. Dated at Iowa City, Iowa, this 26th day of March 2021. �1 j Kellie I{. Fruehling City Clerk ltr 410 EAST WASHINOTON STREET • IOWA CITY, IOWA 52240-1826 • (319) 356-5000 • FAX (319) 356-5009 Book: 6213 Page: 179 Seq: 1 Prepared by: Sara Hektoen, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 Resolution No. 21-106 Resolution adopting Highway Commercial Urban Revitalization Plan Whereas, under Iowa Code Chapter 404 "Urban Revitalization Tax Exemptions," the City is granted the authority to designate an area of the City as a revitalization area if the area is an economic development area, as defined in Iowa Code Section 403.17; and Whereas, pursuant to Resolution 21-52, adopted by the City Council on March 2, 2021, the necessity of declaring the Highway Commercial Urban Revitalization Area as an economic development area was declared, a public hearing was set, all due and proper notices were given and a public hearing held on the proposed Highway Commercial Urban Revitalization Plan; and Whereas, in accordance with said notices, all persons or organizations desiring to be heard on said Plan, both for and against, have been given an opportunity to be heard with respect thereto and due consideration has been given to all comments and views expressed to this Council in connection therewith and said public hearing has been closed. Now, therefore, be it resolved by the City of Iowa City, Iowa, that: 1. The findings and conclusions set forth in the "Highway Commercial Urban Revitalization Plan" for the area of the City of Iowa City, Iowa legally described and depicted in the Plan, attached hereto and incorporated herein by reference (which area shall hereinafter be known as the "Highway Commercial Urban Revitalization Area"), be and the same are hereby adopted and approved as the findings of this Council for this area. 2. The Plan conforms to the general plan for the development of the City as a whole. 3. The attached Highway Commercial Urban Revitalization Plan is hereby approved and adopted as the "Highway Commercial Urban Revitalization Plan" and the City Clerk is hereby directed to file a certified copy of said Plan with the proceedings of this meeting. 3. The Highway Commercial Urban Revitalization Plan shall be in full force and effect from the date of this resolution until the later of the date of termination set forth in Plan or the date on which payment of all obligations issued or advances made to carry out the purposes thereof shall be fully provided for. 4. Said Plan shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorder for Johnson County, Iowa, to be filed and recorded in the manner provided by law. Passed and approved this 20th day of April 20 21 ATTEST: J CITY CLERK �l (Sara Greenwood Hektoen - 04/15/2021) Resolution No. 21-106 Page 2 It was moved by trims Resolution be adopted, and upon roll cal AYES: NAYS: ABSENT: and seconded by Salih the there were: Bergus Mims Salih Taylor Teague Thomas Weiner Highway Commercial Urban Revitalization Plan 2021 Table of Contents Section 1. Establishment of the Highway Commercial Urban Revitalization Plan and Area A. Plan and Area B. Comprehensive Plan Goals C. Plan Objectives Section 2. The Plan Components A. Applicability of Plan B. Tax Exemption Schedule C. Legal Description of the Area D. Existing Assessed Valuations of Real Estate and Owners of Record E. Existing and Proposed Land Uses F. Proposals for Improving or Expanding City Services G. Relocation provisions H. Property in Urban Renewal Area Section 3. Amendments to Plan Section 4. Repeal of Plan Exhibit 1. Area Legal Description Exhibit la. Original Sycamore and 1St Avenue Urban Renewal Area Exhibit 2. Tax Abatement Area Map Exhibit 3. 2020 Assessed Valuations and Owners of Record Exhibit 4. Existing Zoning Map Exhibit 5. Existing Land Use Map Exhibit 6. Proposed Land Use Map 2 Highway Commercial Urban Revitalization Plan Section 1. Establishment of the Highway Commercial Urban Revitalization Plan and Area A. Plan and Area Under Iowa Code Chapter 404 "Urban Revitalization Tax Exemptions," the City is granted the authority to designate an area of the City as a revitalization area if the area is an economic development area, as defined in Iowa Code Section 403.17. Iowa Code Section 403.17 defines an economic development area as one appropriate for commercial and industrial enterprises, public improvements related to housing and residential development. Accordingly, on March 2, 2021 the Iowa City City Council adopted a resolution (21-52) finding that the rehabilitation, conservation, redevelopment, economic development or a combination thereof of the Highway Commercial Urban Revitalization Area ("Area"), legally described in Exhibits 1 and 1 a, is necessary in the interest of public health, safety or welfare of the residents of the City and that the Area meets the criteria of Iowa Code Section 404.1 (2021). The Area shall remain a designated an Urban Revitalization Area for ten (10) years from the date of designation. The City has no plans to issue revenue bonds for revitalization projects within the Area. B. Comprehensive Plan Goals This Urban Revitalization Plan is consistent with and furthers several economic development and environmental goals set forth in the IC2030: Comprehensive Plan. This Comprehensive Plan, adopted in May of 2013, is a statement of goals, policies, and aspirations of the community. The Comprehensive Plan, as amended from time to time, identifies economic development goals including, but not limited to: • Increase and diversify the property tax base by encouraging the retention and expansion of existing businesses and attracting businesses that have growth potential and are compatible with Iowa City's economy; • Encourage a healthy mix of independent, locally owned businesses and national businesses; • Improve the environmental and economic health of the community through efficient use of resources; and • Consider judicious use of financial incentives and programs to achieve the economic development goals though use of objective measurement tools to evaluate public financing requests. To achieve these adopted Comprehensive Plan goals, the properties described in this Highway Commercial Urban Revitalization Plan ("Plan") are hereby designated as appropriate for urban 3 Highway Commercial Urban Revitalization Plan revitalization purposes, and are hereby declared to be included in the Area, and said properties are further declared to be within this Plan. C. Plan Objectives The primary objective of this Plan is to encourage the revitalization of commercial activity in the Area. The objective of the Plan activities is to create an incentive to reinvest in non-residential commercial activities in the Area through rehabilitations, additions, or new construction. To achieve these objectives, the City of Iowa City shall undertake the urban revitalization activities as specified in this Plan, pursuant to the powers granted to the City under Chapter 404, Code of Iowa (2021). The 2020-21 Strategic Plan includes promoting an inclusive and resilient economy throughout the City, in part, by encouraging healthy, diverse, and sustainable economic activity throughout Iowa City, taking steps to invigorate neighborhood commercial districts, creating new small neighborhood commercial nodes and supporting the growth and promotion of small locally -owned businesses, women and minority-owned businesses, and the local foods economy. Included in the Area are older commercial buildings, often with local small businesses operating in them. Historically, the City of Iowa City has made investments in the core commercial areas of Iowa City using Urban Renewal Areas. Urban Renewal Areas enable the City to participate financially in larger projects, while the urban revitalization activities contemplated in this Plan can be beneficial to smaller projects. Having plans for both types of activities improves equity in the City's programs for business development by enabling tax incentives for businesses that may not otherwise qualify for tax increment financing. Although the zoning ordinance may allow residential uses in certain commercial zones within the Area, the objective of this Plan is to make these only allowed for commercial uses in the Area. The market in the Iowa City community is strong for residential uses and does not merit tax exemption incentives. The use of financial incentives, such as property tax exemptions, is necessary, however, to encourage the development of high-density commercial uses in the Area. This Plan complements the City's efforts of reducing carbon emissions by helping users of commercial buildings in the Area improve energy efficiency. Energy efficient buildings will achieve a higher value over time than non -efficient buildings. While energy efficiency investments are not required to be eligible for tax abatement, the City will track information on what, if any energy efficiency improvements are made. Section 2. The Plan Components A. Applicability of Plan 4 Highway Commercial Urban Revitalization Plan 1. Land Uses: This Plan is applicable to all Qualified Real Estate assessed as commercial property. It is not applicable to any residential uses even where a commercial property contains residential uses. 2. Qualified Real Estate: For purposes of this Plan, Qualified Real Estate shall mean real property, other than land, located within the Area and to which Eligible Improvements have been added during the time the Area was so designated, which have increased the actual value by at least 15%, or, in the case of land upon which is located more than one building and not assessed as residential property, which have increased the actual value of the buildings to which the Eligible Improvements have been made by at least 15%. Qualified Real Estate shall also mean land upon which no structure existed at the start of new construction, located in the Area, and upon which a new building or buildings have been constructed during the time the Area was so designated. All improvements must increase the actual value of the property as of the first year for which an exemption is received by at least fifteen percent (15%) in the case of real property assessed as commercial property. Actual value added by Eligible Improvements means the actual value added as of the first year for which the exemption was received. 3. Eligible Improvements: Eligible Improvements include rehabilitation and additions to existing property and new construction commenced after adoption of this Plan. In order to be considered eligible, all improvements must be completed in conformance with all applicable regulations of the City of Iowa City. 4. Prior Approval of Eligibility and Application for Tax Exemption: Prior to commencement of any Eligible Improvements for which an owner intends to see a tax exemption allowed by this Plan, the owner shall submit a proposal for the improvement project to the City. Applicants must identify which energy savings methods they will employ with the improvement to their property, including but, not limited to, 1) LEED certified construction, 2) investment in renewable energy (e.g., solar, wind, geothermal), or 3) use of electric appliances and equipment in lieu of natural gas where possible. The City Council shall review and approve by resolution projects that comply with this Plan and Iowa Code Chapter 404. Such prior approval shall not entitle the owner to exemption from taxation until the Eligible Improvements have been completed and found to be Qualified Real Estate; however, if the proposal is not approved, the person may submit an amended proposal for the City Council to approve or reject. An application shall be filed for each new exemption claimed and approved by the City Council pursuant to Iowa Code Section 404.4. The City Assessor shall physically review each first-year application pursuant to Iowa Code Section 404.5. B. Tax Exemption Schedule Highway Commercial Urban Revitalization Plan All qualified real estate is eligible to receive a partial exemption from taxation on the actual value added by the improvements. The amount of the partial exemption is equal to 100% of the actual value added by the improvements for a period of three (3) years. C. Legal Description of the Area The legal description of the Highway Commercial Urban Revitalization Area is set forth in Exhibits 1 and 1 a, attached and incorporated herein by this reference. Exhibit 2, attached hereto and incorporated by reference herein, is a map of the Area. D. Existing Assessed Valuations of Real Estate and Owners of Record Exhibit 3, attached hereto and incorporated by reference herein, states the existing assessed valuations of all real estate in the Area, and a list of the names and address of the owners of record of real estate within the Area. E. Existing and Proposed Land Uses The existing zoning for the Area is shown in Exhibit 4, attached hereto and incorporated by reference herein. The existing zoning is a mix of commercial and residential designations. The existing land uses within the Area are detailed in Exhibit 5, attached hereto and incorporated by reference herein. Existing land uses in the Area generally include commercial uses (retail, office, and non-residential), residential uses, and public uses. The proposed land uses within the Area are detailed in Exhibit 6, attached hereto and incorporated by reference herein. These proposed land uses are adopted in the IC2030: Comprehensive Plan, which may be amended from time to time. These areas are primarily identified as general/intensive commercial. Nothing in this Plan shall be interpreted to prevent or limit the City Council from exercising the rights, duties, and powers granted to it pursuant to Iowa Code Chapter 414. F. Proposals for Improving or Expanding City Services No extensions or upgrades to existing municipal services or infrastructure are currently planned as part of this Plan. There are currently no plans by the City to issue revenue bonds for revitalization projects within the Area. As development and redevelopment within the Area warrants, municipal services within the Area will be expanded and improved, as needed and as financially feasible, to serve new and expanded development. 6 Highway Commercial Urban Revitalization Plan G. Relocation provisions The City does not anticipate the displacement or relocation of any persons, families, or businesses as a result of the improvements to be made in the Highway Commercial Urban Revitalization Area. However, if the relocation or displacement of a qualified tenant results from a property owner's action to qualify for a tax exemption under this Plan, upon the City's verification of such relocation or displacement, the City may require the property owner to compensate the qualified tenant for at least one month's rent and actual relocation expenses. A "qualified tenant" means the legal occupant of a residential dwelling unit which is located within the designated Revitalization Area and who has occupied the same dwelling unit continuously since one year prior to the adoption of this Plan. H. Property in an Urban Renewal Area The City also has one or more urban renewal areas, established under Chapter 403 of the Code of Iowa, which use tax increment financing to provide incentives for development. Accordingly, a property that, in the determination of the City Council, is within an existing urban renewal area and is receiving either direct or indirect benefits that were financed through a tax increment financing program, shall not be eligible for tax abatement under the Urban Revitalization Plan absent specific approval from the City Council. If an application under this Plan is denied by the City Council because the property for which an exemption is requested is within an existing urban renewal area, the owner may reapply for benefits under this Plan for the same property if the property has subsequently been removed from the urban renewal area, provided the property remains in the designated Revitalization Area and all other Plan requirements are met. Section 4. Amendments to Plan The City may amend this Plan only after a public hearing before the City Council. Notice of said hearing on proposed amendments shall be published as required in Section 362.3, Code of Iowa (2021), provided that at least seven (7) days' notice is given, and that said public hearing is held no earlier than the next regularly scheduled City Council meeting following the published notice. Section 5. Repeal of Plan When, in the opinion of the City Council, the desired level of revitalization has been attained or economic conditions are such that the continuation of the exemption granted by this Plan would cease to be of benefit to the City, the City Council may repeal the ordinance establishing the Plan and Area. In that event, all existing exemptions shall continue until their expiration. 7 Highway Commercial Urban Revitalization Plan Exhibit 1 Area Legal Description Zone A Lots 4-14, MWD Davis Addition, as shown on the plat thereof recorded in Book 49, Page 322. Zone B Lots 1-3, 21, 22, 35-41 and the South 30' of Lot 20, West Side Park, as shown on the plat thereof recorded in Book 24, page 45; That portion of the NE quarter of the NE quarter of Section 20, Township 79 North, Range 6 West of the 5t' P.M. lying northwesterly of Highway 1 West; That portion of the SE quarter of the NE quarter of Section 20, Township 79 North, Range 6 West of the 51}i P.M. lying northwesterly of Highway 1 West. Zone C D&D Billion Addition, as shown on the plat thereof recorded in Book 55, Page 125; Lots 1-4, JJR Davis Second Addition, as shown on the plat thereof recorded in Book 49, Page 101; JJR Davis Third Addition, as shown on the plat thereof recorded in Book 49, Page 100; and JJR Davis Fourth Addition, as shown on the plat thereof recorded in Book 52, Page 236. Zone D SW SE 20-79-6 except Outlot A, as shown on the plat of a Resubdivision of Outlot A, W.B. Development, recorded in Book 38, Page 201; and Lot 5, Scott's Second Addition, as shown on the plat thereof recorded in Book 31, Page 46; and Lots 1 and 2, W.B. Development, as shown on the plat thereof recorded in Book 36, Page 118. Zone E Unit B, Westport Commercial Condominiums, according to the declaration thereof recorded in Book 4225, Page 98, Records of the Johnson County, Iowa Recorder. The SE quarter of the SW quarter of Section 16, Township 79 North, Range 6 West of the 5' P.M.; The SW quarter of the SE quarter of Section 16, Township 79 North, Range 6 West of the 5' P.M.; The SE quarter of the SE quarter of Section 16, Township 79 North, Range 6 West of the 5t1i P.M.; And those portions of the following property lying south of the Highway 1 West right-of-way: • The NE quarter of the SW quarter of Section 16, Township 79 North, Range 6 of the 5t' P.M.; • The NW quarter of the SE quarter of Section 16, Township 79 North, Range 6 of the 5`h P.M.; and • The NE quarter of the SE quarter of Section 16, Township 79 North, Range 6 of the 5' P.M. Zone F The SE quarter of the SW quarter of Section 15, Township 79 North, Range 6 West of the 5' P.M.; Lot 7 and Outlot C, Kennedy's Waterfront Addition, Part Three, as shown on the plat thereof recorded in Book 36, 52; The NE quarter of the NW quarter of Section 22, Township 79 North, Range 6 West of the 5fl P.M., except the CRANDIC railroad right-of-way and the portion lying southeast of the CRANDIC railroad; The NW quarter of the SE quarter of Section 15, Township 79 North, Range 6 West of the 5th P.M., except Plum Grove Acres Subdivision, Part Two, as shown on the plat thereof recorded in Book 2, Page 151; Highway Commercial Urban Revitalization Plan except Lucas Addition, as shown on the plat thereof, recorded in Deed Book 13 Page 580, and except Cook Sargent & Downey's Addition to Iowa City, Iowa, according to the plat thereof The SW quarter of the SE quarter of Section 15, Township 79 North, Range 6 West of the 5' P.M., except Plum Grove Acres Subdivision, Part Three, according to the plat thereof recorded in Book 4, Page 313. Including all of Kennedy's Waterfront Addition, Part 5, Lot 3, as shown on the plat thereof in Book 53, Page 149; The SE quarter of the SE quarter of Section 15, Township 79 North, Range 6 West of the 5' P.M. lying south of Hwy 6 West; The NE quarter of the NE quarter of Section 22, Township 79 North, Range 6 West of the 5' P.M., except KSA Condominiums, according to the Declaration thereof recorded in Book 2174, Page 1 and except that portion lying south of Cross Park Ave; Beginning at the NE corner of the NW quarter of the NE quarter of Section 22, Township 79 North, Range 6 West, thence south along said line 728 feet, more or less, to the south boundary of Lot 7, Block 7, Braverman Center, as shown on the plat thereof recorded in Book 8, Page 69; thence westerly 1,300 feet, more or less, along the southern boundary line of said Block 7 extended, to the western section line of said NW NE quarter section; thence north along said line to the northern boundary of said NW NE quarter section, thence east back to the point of beginning and including all of the land locally known as 367 Southgate Avenue and legally described in Deed Book 5097, Page 994; Lot 7, 8 and Outlot A, Pepperwood Plaza Subdivision, according to the plat thereof recorded in Book 52, Page 60; Lot 3, Braverman Center, according to the plat thereof recorded in Book 12, Page 39, including that land described in Book 1009, Page 378; and Retracement Plat of Survey, Recorded in Book 53, Page 290, Plat records of Johnson County, Iowa. Zone G The original Sycamore and l st Avenue Urban Renewal Area, as described in the attached Exhibit l a 9 Highway Commercial Urban Revitalization Plan Exhibit la Original Sycamore and 11t Avenue Urban Renewal Area Commencing at the Southeast corner of the Northeast quarter of Section 23, Township 79N, Range 6W, in accordance with the Records of the Johnson County Auditor's Office; thence West along the South line of the Northeast quarter of Section 23 to the Southwest corner of the Northeast quarter of Section 23; thence 66 feet to a point perpendicular on the Western Right -of -Way line of Sycamore Street, thence Northerly along said Right -of -Way line to the intersection of the Western Right -of -Way line of Sycamore Street and the Northern Right -of -Way line of U.S. Highway 6, which is the Point of Beginning. Thence Northerly along the Western Right -of -Way line of Sycamore Street to the Southeastern corner of Johnson County Auditor's Parcel 10-14-386-003, thence 66 feet to a point perpendicular on the Eastern Right -of -Way line of Sycamore Street; thence Northerly along the Eastern Right -of -Way line of Sycamore Street to the Northwestern corner of Johnson County Auditor's Parcel 10-14-457-003; thence Easterly 147.61 feet to an angle point of said Parcel; thence Northeasterly 413.83 feet; thence Northerly 57.36 feet to the Southern Right -of -Way line of Lower Muscatine Road; thence Northwesterly along the Southern Right -of -Way line of Lower Muscatine Road to a point perpendicular 33 feet from the Western corner of Johnson County Auditor's Parcel 10-14-452-004; thence Northeasterly 223.82 feet to the Northern corner of said parcel; thence Southeasterly 40 feet to the Eastern corner of said parcel; thence Northeasterly along the property line of Johnson County Auditor's Parcel 10-14-452-002 to its Northern corner; thence Southeasterly 150 feet along the property line of said parcel to its Eastern corner; thence Southwesterly 224.9 feet to the intersection of said parcel's Southern corner and the Northern Right -of -Way line of Lower Muscatine Road. Thence Southeasterly along the Northern Right -of -Way line of Lower Muscatine Road to the Northern Right -of -Way line of Mall Drive; thence Northeasterly 1533.09 feet along the Northern Right -of -Way line of Mall Drive to the Southern Right -of -Way line of the Iowa Interstate Railroad; thence Southeasterly along said Right -of -Way line to its intersection with the Eastern line of Section 14. Thence South along the Eastern line of Section 14 to the Northwest corner of Johnson County Auditor's Parcel 10-13-353-002; thence Easterly 176 feet to the Eastern property line of said parcel; thence Southwesterly along the Eastern property line of Parcel 10-13-353-002 to it's Southeast corner; thence Northwesterly to the Eastern line of Section 23; thence South along the Eastern line of Section 23 to the Southeast corner of the Johnson County Auditor's Parcel described as 10-23-103, 001 through 029, then Southwesterly 988. 76 feet to the Northern Right -of -Way line of Lower Muscatine Road, crossing said Right -of -Way line to the intersecting point of the Southern Right -of -Way line of Lower Muscatine Road and the Northeastern corner of Johnson County Auditor's Parcel number 10-23-105-003; thence Southwesterly 157.9 feet to the Northern Right -of -Way line of U.S. Highway 6; thence Northwesterly 307 .82 feet to the intersection of the Northern Right -of -Way line of U.S. Highway 6 and the Eastern Right -of - Way line of First Avenue; projecting across the First Avenue Right -of -Way along the Northern Right -of - Way line of U.S. Highway 6 to the intersection of the Western Right -of -Way line of First Avenue and the Northern Right -of -Way line of U.S. Highway 6; thence Westerly along the Northern Right -of -Way line of U.S. Highway 6 a distance of 1123.13 feet to its intersection with the Eastern Right -of -Way line of Sycamore Street, projecting across the Sycamore Street Right -of -Way along the Northern Right -of -Way of U.S. Highway 6 to the intersection of the Western Right -of -Way line of Sycamore Street and the Northern Right -of -Way line of U.S. Highway 6, to the Point of Beginning. 10 Highway Commercial Urban Revitalization Plan 0 Q N Cu N a` a X Cu Exhibit 2 Tax Abatement Area Map 1 0 m R � yyj O 3 a`o U W a� W U O1 W C 0 W W C C W yp � W W L Z •- >. ZN v`o W y 00 W E N }} L , T O t c � H O n 11 Highway Commercial Urban Revitalization Plan Exhibit 2 Tax Abatement Area Map 2 12 Highway Commercial Urban Revitalization Plan Exhibit 2 Tax Abatement Area Map 3 13 Highway Commercial Urban Revitalization Plan Exhibit 3 2020 Assessed Valuations & Owners of Record (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020303003 IOWA CITY, IA, 52240 NAPLES AVE $1320 $0 $0 $1320 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020303002 IOWA CITY, IA, 52240 NAPLES AVE $1080 $0 $0 $1080 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020304001 IOWA CITY, IA, 52240 NAPLES AVE $1890 $0 $0 $1890 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020303001 IOWA CITY, IA, 52240 NAPLES AVE $2010 $0 $0 $2010 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 2370 NAPLES 1020284001 IOWA CITY, IA, 52240 AVE $305500 $31640 $0 $337140 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020284005 IOWA CITY, IA, 52240 NAPLES AVE $1780 $0 $0 $1780 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020284004 IOWA CITY, IA, 52240 NAPLES AVE $1340 $0 $0 $1340 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020304007 IOWA CITY, IA, 52240 NAPLES AVE $1030 $0 $0 $1030 GREAT WEST LAND GROUP, (A) LLC 1901 S NAVAJO ST 1020303006 DENVER, CO, 80223 NAPLES AVE $780 $0 $0 $780 (A) REIF OIL COMPANY 801 N 3RD ST 2580 NAPLES 1020303007 BURLINGTON, IA, 52601 AVE $767950 $1221390 $0 $1989340 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020284003 IOWA CITY, IA, 52240 NAPLES AVE $1230 $0 $0 $1230 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020284002 IOWA CITY, IA, 52240 NAPLES AVE $1720 $0 $0 $1720 (A) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020304003 IOWA CITY, IA, 52240 NAPLES AVE $0 $0 $0 $0 JAMES P SCANLON FAMILY (B) TRUST LC PO BOX 1700 2346 MORMON 1020157004 IOWA CITY, IA, 0 TREK BLVD $656800 $3310260 1 $0 $3967060 (B) FIRST NATIONAL BANK PO BOX 460169 2312 MORMON 1020157003 HOUSTON, TX, 77056 TREK BLVD $608500 $675180 $0 $1283680 JKS REAL ESTATE GROUP (B) LLC PO BOX 25 1550 WILLOW 1020103003 PARNELL, IA, 52325 CREEK DR $131250 $340390 $0 $471640 14 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (B) 319 PROPERTIES LLP 945 MANITOU TR 1538 WILLOW 1020103002 IOWA CITY, IA, 52245 CREEK DR $131250 $116900 $0 $248150 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107001 IOWA CITY, IA, 52240 1 $22650 $59840 $0 $82490 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107002 IOWA CITY, IA, 52240 2 $22650 $57930 $0 $80580 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107003 IOWA CITY, IA, 52240 3 $13600 $38080 $0 $51680 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107004 IOWA CITY, IA, 52240 4 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107005 IOWA CITY, IA, 52240 5 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107006 IOWA CITY, IA, 52240 6 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107007 IOWA CITY, IA, 52240 7 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107008 IOWA CITY, IA, 52240 8 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107009 IOWA CITY, IA, 52240 9 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107010 IOWA CITY, IA, 52240 10 $9050 $23140 $0 $32190 (B) AK-RENTALS LLC 1610 WILLOW 1458 WETHERBY DR CREEK DR UNIT 1020107011 IOWA CITY, IA, 52240 11 $9050 $23140 $0 $32190 (B) TRUST FIBIO PATRICIA WADE 2601 HICKORY TRL UNIT #10 1545 WILLOW 1020103008 IOWA CITY, IA, 52245 CREEK DR $120300 $145190 $0 $265490 (B) BARKER DEVELOPMENT CO 437 BUTTERNUT LN 1506 HIGHWAY 1 1020103009 IOWA CITY, IA, 52246 W $250590 $245700 $0 $496290 (B) WAGENKNECHT, WILLIAM H 3091 BUCHMAYER BND NE WILLOW CREEK 1020101003 IOWA CITY, IA, 52240 DR $131250 $17070 $0 $148320 (B) DONNA A DANE TRUST 4082 DANE RD SE 1430 WILLOW 1020101002 IOWA CITY, IA, 52240 CREEK DR $131250 $56850 $0 $188100 DREUSICKE PROPERTIES (B) LLC 1445 HWY 1 W 1420 WILLOW 1020104003 IOWA CITY, IA, 52246 CREEK CT $214550 $414630 $0 $629180 15 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (B) FOUNTAIN, CHRISTOPHER R 1438 WILLOW CREEK CT 1438 WILLOW 1020104004 IOWA CITY, IA, 52246 CREEK CT $175090 $269780 $0 $444870 CASEY'S MARKETING (B) COMPANY PO BOX 3001 1410 WILLOW 1020101001 ANKENY, IA, 0 CREEK DR $468200 $792700 $0 $1260900 SIXTEEN ELEVEN (B) ASSOCIATES 1611 WILLOW CREEK DR 1611 WILLOW 1020103007 IOWA CITY, IA, 52246 CREEK DR $169020 $174760 $0 $343780 (B) BARKER DEVELOPMENT CO 437 BUTTERNUT LN 1518 HIGHWAY 1 1020103010 IOWA CITY, IA, 52246 W $507050 $346030 $0 $853080 (B) LLOYD, OLIN 5271 SIOUX AVE SE 1630 WILLOW 1020103005 IOWA CITY, IA, 52240 CREEK DR $218700 $379740 $0 $598440 (B) BARKER DEVELOPMENT CO 437 BUTTERNUT LN 1650 WILLOW 1020103013 IOWA CITY, IA, 52246 CREEK DR $168700 $0 $0 $168700 (B) CITY OF IOWA CITY 410 E WASHINGTON ST WILLOW CREEK 1020103014 IOWA CITY, IA, 0 DR $0 $0 $0 $0 (B) TRUST FIBIO PATRICIA WADE 2601 HICKORY TRL UNIT #10 1524 WILLOW 1020103001 IOWA CITY, IA, 52245 CREEK DR $131250 $255960 $0 $387210 (B) LLOYD, OLIN 3091 BUCHMAYER BND NE 1510 WILLOW 1020102001 IOWA CITY, IA, 52240 CREEK DR $157500 $288530 $0 $446030 (B) STIMMEL PROPERTIES LLC 3210 HIGHWAY 1 SW 1402 WILLOW 1020104001 IOWA CITY, IA, 52240 CREEK CT $150940 $374980 $0 $525920 DREUSICKE PROPERTIES (B) LLC 1445 HWY 1 W 1515 WILLOW 1020104002 IOWA CITY, IA, 52246 CREEK DR $346130 $646740 $0 $992870 (B) ARCHLAND PROPERTY I LLC 105 5TH ST 2440 MORMON 1020165011 CORALVILLE, IA, 52241 TREK BLVD $580410 $733120 $0 $1313530 (B) BFLS PROPERTIES LLC 5630 GABLE AVE SW 16 WEST SIDE 1020165006 KALONA, IA, 52247 DR $232130 $205300 $0 $437430 CITY OF IOWA CITY - (B) AIRPORT COMMISSION 410 E WASHINGTON ST 1020177006 IOWA CITY, IA, 0 HIGHWAY 1 W $0 $0 $0 $0 (B) CITY OF IOWA CITY 410 E WASHINGTON ST 1020177007 IOWA CITY, IA, 0 HIGHWAY 1 W $0 $0 $0 $0 DREUSICKE PROPERTIES (B) LLC 1445 HWY 1 W 1620 HIGHWAY 1 1020177008 IOWA CITY, IA, 52246 W $427500 $240700 $0 $668200 16 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (B) BFLS PROPERTIES LLC 5630 GABLE AVE SW 2410 MORMON 1020165009 KALONA, IA, 52247 TREK BLVD $459290 $690250 $0 $1149540 (B) DEERY DEERY & DEERY LLC 7404 UNIVERSITY AVE 2343 MORMON 1020158013 CEDAR FALLS, IA, 50613 TREK BLVD $1524000 $1855190 $0 $3379190 (B) DEALER PROPERTIES IC LLC 3401 W 41 ST ST 2331 MORMON 1020158012 SIOUX FALLS, SD, 57106 TREK BLVD $1322500 $1445180 $0 $2767680 (B) TLD -WT LLC PO BOX 75006 2225 MORMON 1020158011 CEDAR RAPIDS, IA, 52407 TREK BLVD $535000 $2532360 $0 $3067360 FARMERS & MERCHANTS (B) SAVINGS BANK 2235 MORMON TREK BLVD 2235 MORMON 1020158010 IOWA CITY, IA, 52246 TREK BLVD $647000 $1179990 $0 $1826990 FIRST CAPITOL INVESTMENT (B) COMPANY LLP 24 WEST SIDE DR 24 WEST SIDE 1020161003 IOWA CITY, IA, 52246 DR $344040 $1207300 $0 $1551340 (B) TRUST F/B/O PATRICIA WADE 2601 HICKORY TRL UNIT #10 1640 HIGHWAY 1 1020177005 IOWA CITY, IA, 52245 W $304850 $209950 $0 $514800 (B) CFMT PARTNERS LLC 711 S GILBERT ST 2220 MORMON 1020156001 IOWA CITY, IA, 52240 TREK BLVD $859800 $830650 $0 $1690450 (B) AMH HOLDINGS LLC 504 STUART CT 1600 HIGHWAY 1 1020105005 IOWA CITY, IA, 52245 W $3058400 $275010 $0 $3333410 (C) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020406003 IOWA CITY, IA, 52240 $20 $0 $0 $20 (C) ILJ INVESTMENTS, INC PO BOX 545 MORMON TREK 1020407001 WELLMAN, IA, 52356 BLVD $5790 $0 $0 $5790 (C) D & P PROPERTY LLC 526 WOODRIDGE AVE 2650 MORMON 1020180004 IOWA CITY, IA, 52245 TREK BLVD $827000 $2345820 $0 $3172820 (C) DEALER PROPERTIES IC LLC 3401 W 41 ST ST 2641 MORMON 1020408001 SIOUX FALLS, SD, 57106 TREK BLVD $4081250 $13228470 $0 $17309720 (C) ILJ INVESTMENTS, INC PO BOX 545 MORMON TREK 1020407002 WELLMAN, IA, 52356 BLVD $1070 $0 $0 $1070 (C) DEALER PROPERTIES IC LLC 3401 W 41 ST ST 2845 MORMON 1020408003 SIOUX FALLS, SD, 57106 TREK BLVD $700000 $2024640 $0 $2724640 CFGRB REALTY HOLDINGS (C) INC 1111 E RIVER DR 1020180005 DAVENPORT, IA, 52803 $1310 $0 $0 $1310 17 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value SHOTTENKIRK I C R LLC (C) 309 S GEAR WEST BURLINGTON, IA, MORMON TREK 1020406002 52655 BLVD $2370 $0 $0 $2370 (C) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020409001 IOWA CITY, IA, 52240 $1700 $0 $0 $1700 CFGRB REALTY HOLDINGS (C) INC 1111 E RIVER DR 1020181001 1 DAVENPORT, IA, 52803 $2120 $0 $0 $2120 (C) DANE, HAROLD JOHN III 1111 E RIVER DR 1020182101 DAVENPORT, IA, 52803 $1140 $0 $0 $1140 (C) DANE, HAROLD JOHN III 1111 E RIVER DR 1020182102 DAVENPORT, IA, 52803 $390 $0 $0 $390 (C) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020409102 IOWA CITY, IA, 52240 $1170 $0 $0 $1170 (C) DAVIS, JAMES R 4097 KITTY LEE RD SW 1020409101 IOWA CITY, IA, 52240 $280 $0 $0 $280 SHOTTENKIRK I C R LLC (C) 309 S GEAR WEST BURLINGTON, IA, MORMON TREK 1020406001 52655 BLVD $2800 $0 $0 $2800 CORNERSTONE CAPITAL (D) PARTNERS, LLC PO BOX 310 1020454002 IOWA CITY, IA, 52240 3 ESCORT LN $125000 $410270 $0 $535270 CORNERSTONE CAPITAL (D) PARTNERS, LLC PO BOX 310 1020454001 IOWA CITY, IA, 52240 ESCORT LN $100000 $0 1 $0 $100000 (D) CHERYL M SOBASKI LC 1003 MEADOWLARK DR 1020456007 IOWA CITY, IA, 52246 119 ESCORT LN $680 $0 $0 $680 CORNERSTONE CAPITAL (D) PARTNERS, LLC 1546 HEMINGWAY LN 1020456008 IOWA CITY, IA, 52240 137 ESCORT LN $1110 $0 $0 $1110 GARAGEMAHAUL SELF (D) STORAGE LLC 961 MILLER AVE STE B 1020457002 IOWA CITY, IA, 52246 SIERRA CT $520 $0 $0 $520 MAXWELL DEVELOPMENT (D) COMPANY LC 3011 SIERRA CT SW 1020457005 IOWA CITY, IA, 52240 SIERRA CT $185410 $25090 $0 $210500 (D) BERNHARDT, STEVEN C 1635 RIDGE RD 1020456009 IOWA CITY, IA, 52245 51 ESCORT LN $250000 $525850 $0 $775850 18 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value MAXWELL DEVELOPMENT (D) COMPANY LC 3011 SIERRA CT SW 1020457003 IOWA CITY, IA, 52240 2937 SIERRA CT $407500 $3202300 $0 $3609800 GARAGEMAHAUL SELF (D) STORAGE LLC 961 MILLER AVE STE B 1020457001 IOWA CITY, IA, 52246 NAPLES AVE $770 $0 $0 $770 (D) ESCORT LANE VENTURES 1580 MALL DR 1020452003 IOWA CITY, IA, 52240 34 ESCORT LN $6500 $1660 $0 $8160 (D) CAL-DAK I LLC 3401 W 41 ST ST 1020451011 SIOUX FALLS, SD, 57106 160 ESCORT LN $407500 $500290 $0 $907790 CORNERSTONE CAPITAL (D) PARTNERS, LLC 1546 HEMINGWAY LN 1020456001 IOWA CITY, IA, 52240 173 ESCORT LN $4250 $0 $0 $4250 CORNERSTONE CAPITAL (D) PARTNERS, LLC PO BOX 310 1020456002 IOWA CITY, IA, 52240 155 ESCORT LN $163880 $819580 $0 $983460 (D) CHERYL M SOBASKI L C 1003 MEADOWLARK DR 1020456003 IOWA CITY, IA, 52246 101 ESCORT LN $171000 $315650 $0 $486650 ESCORT LANE VENTURES (D) LLC 1580 MALL DR 1020427004 IOWA CITY, IA, 52240 $9980 $0 $0 $9980 (D) NAPLES 1 LLC 2730 NAPLES AVE STE 101 2730 NAPLES 1020427003 IOWA CITY, IA, 52246 AVE $326250 $1034570 $0 $1360820 (D) HWZ LLC 2 ESCORT LN 1020452002 IOWA CITY, IA, 52244 2 ESCORT LN $407530 $451630 $0 $859160 MAXWELL DEVELOPMENT (D) COMPANY LC 3011 SIERRA CT SW 1020457004 IOWA CITY, IA, 52240 3003 SIERRA CT $295000 $1727110 $0 $2022110 (E) BFDJ HOLDINGS L L C PO BOX 460049 760 RUPPERT 1016429005 HOUSTON, TX, 77056 RD $843050 $1650520 $0 $2493570 (E) YODER, LARRY E 1380 RIVERSIDE RD 1229 SHIRKEN 1016430014 RIVERSIDE, IA, 52327 DR $141770 $76540 $0 $218310 CORNERSTONE CAPITAL (E) PARTNERS, LLC PO BOX 310 537 HIGHWAY 1 1016430007 IOWA CITY, IA, 52240 W $289750 $377290 $0 $667040 (E) BFLS PROPERTIES LLC 5630 GABLE AVE SW 521 HIGHWAY 1 1016430004 KALONA, IA, 52247 W $235750 $487240 $0 $722990 19 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (E) SHIRKEN L L C 463 HWY 1 WEST 1119 SHIRKEN 1016430013 IOWA CITY, IA, 52246 DR $392190 $572420 $0 $964610 (E) K PLAZA RENTAL CORP 724 SPENCER DR 411 HIGHWAY 1 1016407006 IOWA CITY, IA, 52246 W $345470 $428523 $336697 $1110690 IOWA CITY AERIE NO 695 FRATERNAL ORDER OF (E) EAGLES 225 HWY 1 WEST 225 HIGHWAY 1 1016407005 IOWA CITY, IA, 52246 W $315000 $400650 $0 $715650 IOWA CITY AERIE NO 695 FRATERNAL ORDER OF (E) EAGLES 225 HWY 1 WEST 1016407004 IOWA CITY, IA, 52246 HIGHWAY 1 W $155300 $12010 $0 $167310 (E) VAN METER INDUSTRIAL INC 850 32ND AVE SW 470 RUPPERT 1016451002 CEDAR RAPIDS, IA, 52404 RD $387370 $1854110 $0 $2241480 GARY J HARAPAT (E) REVOCABLE TRUST 2657 ANCHORAGE RD NE 436 RUPPERT 1016451001 1 SOLON, IA, 52333 RD $225800 $326930 $0 $552730 GARY J HARAPAT (E) REVOCABLE TRUST 2657 ANCHORAGE RD NE 1016478005 SOLON, IA, 52333 $227850 $0 $0 $227850 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1016477003 CORALVILLE, IA, 52241 515 ERNEST ST $81050 $204160 $0 $285210 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1016477002 CORALVILLE, IA, 52241 511 ERNEST ST $35960 $3790 $0 $39750 (E) DEERY DEERY & DEERY LLC 7404 UNIVERSITY AVE 605 HIGHWAY 1 1016430008 CEDAR FALLS, IA, 50613 W $287230 $330420 $0 $617650 (E) RWH REAL ESTATE LLC 465 HWY 1 WEST STE 200 465 HIGHWAY 1 1016430001 IOWA CITY, IA, 52246 W $185500 $231990 $0 $417490 RONALD E WADE TRUST (E) FIBIO PATRICIAN WADE 2601 HICKORY TRL #10 1016478003 IOWA CITY, IA, 52245 $397970 $0 $0 $397970 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1205S 1016477001 CORALVILLE, IA, 52241 RIVERSIDE DR $53780 $771170 $0 $824950 IOWA CITY COMMUNITY (E) SCHOOL DISTRICT 1725 N DODGE ST 1016478007 IOWA CITY, IA, 52245 $0 $53050 $0 $53050 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1016476005 CORALVILLE, IA, 52241 5 ERNEST ST $20520 $0 $67240 $87760 20 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value SLAGER FAMILY (E) PARTNERSHIP 901 TALWRN CT 425 HIGHWAY 1 1016407007 IOWA CITY, IA, 52246 W $589000 $512421 $575229 $1676650 RONALD E WADE TRUST (E) FIBIO PATRICIAN WADE 2601 HICKORY TRL #10 1016478004 IOWA CITY, IA, 52245 $177460 $0 $0 $177460 IOWA CITY COMMUNITY (E) SCHOOL DISTRICT 1725 N DODGE ST 1137S 1016476001 IOWA CITY, IA, 52245 RIVERSIDE DR $0 $0 $0 $0 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1016476004 CORALVILLE, IA, 52241 520 ERNEST ST $44070 $0 $648340 $692410 (E) ITC MIDWEST LLC 27175 ENERGY WAY 1016453005 NOVI, MI, 48377 $0 $0 $0 $0 (E) ITC MIDWEST LLC 27175 ENERGY WAY 1016453006 NOVI, MI, 48377 $0 $0 $0 $0 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1016478001 CORALVILLE, IA, 52241 $19300 $0 $0 $19300 BOARD OF REGENTS STATE OF IOWA FOR THE USE & BENEFIT OF THE (E) UNIVERSITY OF IOWA 4 JESSUP HALL 385 RUPPERT 1016480001 IOWA CITY, IA, 0 RD $150190 $0 $0 $150190 (E) FALEY PROPERTIES LLC 1550 INNOVATION DR 270 RUPPERT 1016478006 DUBUQUE, IA, 52002 RD $348340 $779350 $0 $1127690 (E) CITY OF IOWA CITY 410 E WASHINGTON ST 1016480002 IOWA CITY, IA, 0 $48580 $0 $0 $48580 (E) ITC MIDWEST LLC 27175 ENERGY WAY 1016453001 NOVI, MI, 48377 $0 $0 $0 $0 (E) ITC MIDWEST LLC 27175 ENERGY WAY 1016453002 NOVI, MI, 48377 $0 $0 $0 $0 AFTERSHOCK VENTURES (E) LLC 156 GAUL DR 1015 HIGHWAY 1 1016378003 SERGEANT BLUFF, IA, 51054 W $332150 $658630 $0 $990780 (E) B & B MEYER LLC 615 HWY 1 WEST 615 HIGHWAY 1 1016430009 IOWA CITY, IA, 52246 W $224940 $584920 $146230 $956090 CLUB CAR WASH IOWA CITY, (E) LLC 1213 OLD HWY 63 #101 1059 HIGHWAY 1 1016376003 COLUMBIA, MO, 65201 W $607500 $492340 $0 $1099840 21 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (E) WILLIAMSON, DIANE H 93 HICKORY HEIGHTS LN 809 HIGHWAY 1 1016306003 IOWA CITY, IA, 52245 W $2284000 $2903740 $0 $5187740 (E) CFT DEVELOPMENTS LLC 1683 WALNUT GROVE AVE 1035 HIGHWAY 1 1016378002 ROSEMEAD, CA, 91770 W $391430 $473480 $0 $864910 WAL-MART REAL ESTATE (E) BUSINESS TRUST PO BOX 8050 919 HIGHWAY 1 1016378001 BENTONVILLE, AR, 0 W $4679930 $9806470 $0 $14486400 (E) RKB INVESTMENTS LLC 1069 HWY 1 W UNIT B 1075 HIGHWAY 1 1016366001 IOWA CITY, IA, 52246 W $369450 $236910 $0 $606360 (E) RKB INVESTMENTS LLC 1069 HWY 1 W UNIT B 1069 HIGHWAY 1 1016366002 IOWA CITY, IA, 52246 W $221550 $369430 $0 $590980 (E) CITY OF IOWA CITY 410 E WASHINGTON ST 1016365002 IOWA CITY, IA, 0 $22070 $0 $0 $22070 (E) SHIRLEY RANSHAW LLC 463 HIGHWAY 1 W 531 HIGHWAY 1 1016430006 IOWA CITY, IA, 52246 W $650550 $461480 $0 $1112030 (E) DEERY DEERY & DEERY LLC 7404 UNIVERSITY AVE 651 HIGHWAY 1 1016451010 CEDAR FALLS, IA, 50613 W $2252800 $3158090 $0 $5410890 (E) AUTOHAUS LTD 809 HIGHWAY 1 W 602 RUPPERT 1016451011 IOWA CITY, IA, 52246 RD $331330 $688620 $0 $1019950 (E) ITC MIDWEST LLC 27175 ENERGY WAY 1016453004 NOVI, MI, 48377 $0 $0 $0 $0 (E) ITC MIDWEST LLC 27175 ENERGY WAY 635 RUPPERT 1016453003 NOVI, MI, 48377 RD $0 $0 $0 $0 (E) CITY OF IOWA CITY 410 E WASHINGTON ST 1016479001 IOWA CITY, IA, 0 $0 $0 $0 $0 (E) KSK LIMITED PARTNERSHIP 463 HWY 1 WEST 485 HIGHWAY 1 1016430003 IOWA CITY, IA, 52246 W $62430 $280860 $0 $343290 (E) KSK LIMITED PARTNERSHIP 463 HWY 1 WEST 431 HIGHWAY 1 1016407008 IOWA CITY, IA, 52246 W $661000 $578748 $733832 $1973580 (E) KSK LIMITED PARTNERSHIP 463 HWY 1 WEST 447 HIGHWAY 1 1016430002 IOWA CITY, IA, 52246 W $398500 $426492 $544928 $1369920 (E) ALEXIS MANOR, LLC 2262 JESSICA LN 1165S 1016476006 CORALVILLE, IA, 52241 RIVERSIDE DR $102490 $748380 $0 $850870 (E) RUPPERT ROAD LLC PO BOX 25 560 RUPPERT 1016451012 HIAWATHA, IA, 52233 RD $579770 $1538680 $0 $2118450 22 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value PRATT REAL ESTATE (E) GROUP, LLC 75 COMMERCIAL DRIVE #916 171 HIGHWAY 1 1016408001 NORTH LIBERTY, IA, 52317 W $489200 $969470 $0 $1458670 (E) GATEWAY ONE LC 250 12TH AVE #150 161 HIGHWAY 1 1016408002 CORALVILLE, IA, 52241 W $112400 $441720 $0 $554120 (E) SKOURA, LLC 1113 E COLLEGE ST 125 HIGHWAY 1 1016408003 IOWA CITY, IA, 52240 W $930700 $1600290 $0 $2530990 (E) GATEWAY ONE LC 250 12TH AVE #150 115 HIGHWAY 1 1016408004 CORALVILLE, IA, 52241 W $263800 $814750 $0 $1078550 (E) GATEWAY ONE LC 250 12TH AVE #150 101 HIGHWAY 1 1016408005 CORALVILLE, IA, 52241 W $99200 $348940 $0 $448140 (E) GATEWAY ONE LC 250 12TH AVE #150 1016408006 CORALVILLE, IA, 52241 3 HIGHWAY 1 W $789100 $2939770 $0 $3728870 (E) GATEWAY ONE LC 250 12TH AVE - STE 150 1016407010 CORALVILLE, IA, 52241 11 HIGHWAY 1 W $363360 $471340 $0 $834700 BEATON HOLDING COMPANY (F) LC 5805 COUNCIL ST NE STE D 1445 BOYRUM 1015453003 CEDAR RAPIDS, IA, 52402 ST $421580 $625600 $0 $1047180 (F) THE CROLAR GROUP LLC 1805 STEVENS DR 1805 STEVENS 1015386003 IOWA CITY, IA, 52240 DR $95760 $113940 $0 $209700 (F) CROSBY, W BOYD 4212 SUE LINDA CIR NE 1907 STEVENS 1022204002 IOWA CITY, IA, 0 DR $136460 $330020 $0 $466480 (F) K & G 1335 OAKLAWN AVE 1015388001 IOWA CITY, IA, 52245 111 STEVENS DR $148100 $136230 $0 $284330 (F) CITY OF IOWA CITY 410 E WASHINGTON ST 1015378002 IOWA CITY, IA, 0 $0 $0 $0 $0 T & Z REAL ESTATE LLC (F) 4757 HERBERT HOOVER HWY SE 519 HIGHLAND 1015453001 IOWA CITY, IA, 52240 AVE $77030 $234225 $199525 $510780 (F) RSM INVESTMENTS, LLC 507 HIGHLAND AVE 507 HIGHLAND 1015453002 IOWA CITY, IA, 52340 AVE $290590 $450290 $0 $740880 CORNERSTONE CAPITAL (F) PARTNERS, LLC PO BOX 310 505 KIRKWOOD 1015428003 IOWA CITY, IA, 52244 AVE $61600 $0 $115330 $176930 (F) WOOLUMS, SHIRLEY A 431 KIRKWOOD AVE 431 KIRKWOOD 1015428004 IOWA CITY, IA, 52240 AVE $54000 $0 $110110 $164110 23 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (F) CHARM HOMES LLC 409 KIRKWOOD AVE STE A 409 KIRKWOOD 1015429002 IOWA CITY, IA, 52240 AVE $194480 $297080 $0 $491560 SHELTER HOUSE COMMUNITY SHELTER & (F) TRANSITION SERVICES 429 SOUTHGATE AVE 820 CROSS 1022101013 IOWA CITY, IA, 52240 PARK AVE $124760 $0 $1920270 $2045030 (F) MELLADO, NELSON F 2030 KEOKUK ST 1022101010 IOWA CITY, IA, 52440 2030 KEOKUK ST $105790 $145396 $45914 $297100 (F) THE CHURCH IN IOWA CITY 1014 SUNSET ST 1022101011 IOWA CITY, IA, 52246 2040 KEOKUK ST $119700 $276300 $0 $396000 (F) AGING SERVICES INC 817 740 N 15TH AVE STE - A PEPPERWOOD 1022101009 HIAWATHA, IA, 52233 LN $131330 $615266 $227564 $974160 (F) GOOD NEWS BIBLE CHURCH 845 845 PEPPERWOOD LN PEPPERWOOD 1022101016 IOWA CITY, IA, 52240 LN $262660 $1554560 $0 $1817220 (F) KEOKUK INVESTMENTS LLC 2010 KEOKUK ST 1022101020 IOWA CITY, IA, 52240 2010 KEOKUK ST $154430 $330510 $0 $484940 PEPPERWOOD PROPERTIES, (F) LLC 755 MORMON TREK BLVD 925 HIGHWAY 6 1022108010 IOWA CITY, IA, 52246 E $363130 $2214140 $0 $2577270 PEPPERWOOD PROPERTIES, (F) LLC 755 MORMON TREK BLVD 1022108008 IOWA CITY, IA, 52246 $46490 $0 $0 $46490 PEPPERWOOD PROPERTIES, (F) LLC 755 MORMON TREK BLVD 985 HIGHWAY 6 1022108001 IOWA CITY, IA, 52246 E $223120 $923140 $0 $1146260 (F) YEAGER, JEANINE M 4935 420TH ST SE 1022109001 IOWA CITY, IA, 52240 2048 KEOKUK ST $45980 $0 $54720 $100700 PARKVIEW EVANGELICAL (F) FREE CHURCH 15 FOSTER RD 1023243002 IOWA CITY, IA, 52245 BROADWAY ST $111050 $10220 $0 $121270 CRESCENT REALTY (F) CORPORATION 7750 DUNLEITH DR 2149 S GILBERT 1022212004 EAST DUBUQUE, IL, 61025 ST $360000 $647800 $0 $1007800 (F) T & C INVESTMENTS LLC PO BOX 2746 115 SOUTHGATE 1022207002 IOWA CITY, IA, 52244 AVE $94500 $357370 $0 $451870 (F) T & C INVESTMENTS LLC PO BOX 2746 2013 STEVENS 1022207003 IOWA CITY, IA, 52244 DR $110250 $224930 $0 $335180 24 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214001 IOWA CITY, IA, 52245 DR UNIT 1 $36590 $82880 $0 $119470 (F) FAGAN, JOEL L 450 HIGHWAY 1 W #163 505 SOUTHGATE 1022133007 IOWA CITY, IA, 52246 AVE $98280 $222200 $0 $320480 GONZALEZ, VINCENTE (F) GARCIA 1937 KEOKUK ST 515 SOUTHGATE 1022133006 IOWA CITY, IA, 52240 AVE $97870 $164120 $0 $261990 SJRE YOUNG FAMILY (F) PARTNERSHIP LLC 1275 DEERFIELD DR 525 SOUTHGATE 1022133005 IOWA CITY, IA, 52246 AVE $161700 $201130 $0 $362830 (F) D THREE, LLC 1566 S GILBERT ST 533 SOUTHGATE 1022133004 IOWA CITY, IA, 52240 AVE $80330 $213990 $0 $294320 (F) D THREE, LLC 1566 GILBERT ST 535 SOUTHGATE 1022133003 IOWA CITY, IA, 52240 AVE $79800 $155030 $0 $234830 (F) ELM REAL ESTATE LC PO BOX 122 547 SOUTHGATE 1022133002 CEDAR RAPIDS, IA, 0 AVE $106760 $156220 $0 $262980 MID -EASTERN COUNCIL ON (F) CHEMICAL ABUSE 430 SOUTHGATE AVE 436 SOUTHGATE 1022128005 IOWA CITY, IA, 52240 AVE $157500 $0 $1105530 $1263030 TEMPLETON COMMERCIAL (F) PROPERTIES LLC 701 WABASH AVE SUITE 501 SOUTHGATE 1022127002 TERRE HAUTE, IN, 47807 AVE $58500 $23060 $0 $81560 ATERRA 23 536 SOUTHGATE (F) IOWA CITY LLC 1001 GRAND AVE 536 SOUTHGATE 1022132002 WEST DES MOINES, IA, 50265 AVE $82950 $145310 $0 $228260 (F) MCC IOWA LLC 1 MEDIACOM WAY 546 SOUTHGATE 1022132001 CHESTER, NY, 10918 AVE $175350 $274130 $0 $449480 (F) IMON COMMUNICATIONS LLC 101 3RD AVE SW STE 400 1022131002 CEDAR RAPIDS, IA, 52404 535 OLYMPIC CT $131250 $236110 $0 $367360 (F) MCC IOWA LLC 1 MEDIACOM WAY SOUTHGATE 1022131006 CHESTER, NY, 10918 AVE $63000 $86250 $0 $149250 (F) D GARCIA LLC 1937 KEOKUK ST 1022102005 IOWA CITY, IA, 52240 1937 KEOKUK ST $157500 $376690 $0 $534190 DOMESTIC VIOLENCE INTERVENTION PROGRAM (F) INC 1105 S GILBERT CT #300 1022126001 IOWA CITY, IA, 52240 548 OLYMPIC CT $168490 $0 $840580 $1009070 25 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (F) JS & JS L C 3780 LOIS LN NE 1022131001 NORTH LIBERTY, IA, 0 545 OLYMPIC CT $178650 $339240 $0 $517890 (F) MACKIE RENTALS LLC 4499 580TH ST 610 SOUTHGATE 1022103004 LONE TREE, IA, 52755 AVE $214200 $399440 $0 $613640 (F) MACKIE RENTALS LLC 4499 580TH ST 610 SOUTHGATE 1022103006 LONE TREE, IA, 52755 AVE REAR $32100 $0 $0 $32100 (F) MACKIE RENTALS LLC 4499 580TH ST 1022102004 LONE TREE, IA, 52755 1933 KEOKUK ST $73500 $288420 $0 $361920 (F) BURTCH RENTALS LLC 1509 400TH ST SW 1929 KEOKUK ST 1022103005 OXORD, IA, 52322 REAR $32340 $4800 $0 $37140 (F) THE MISFITS 1927 KEOKUK ST 1022102002 IOWA CITY„ 52240 1927 KEOKUK ST $142050 $222370 $0 $364420 (F) DOWNES, GREGORY J 601 601 HOLLYWOOD BLVD STE 6 HOLLYWOOD 1015458004 IOWA CITY, IA, 52240 BLVD $388440 $698470 $0 $1086910 LEROY E WEEKES POST # (F) 3949 VFW 609 609 HWY 6 E HOLLYWOOD 1015459001 IOWA CITY, IA, 52240 BLVD $105060 $250180 $0 $355240 YOUTH HOMES (F) INCORPORATED 1916 1916 WATERFRONT DR WATERFRONT 1022128001 IOWA CITY, IA, 52240 DR $286800 $688369 $404281 $1379450 TEMPLETON COMMERCIAL (F) PROPERTIES LLC 701 WABASH AVE SUITE 501 1925 BOYRUM 1022127001 TERRE HAUTE, IN, 47807 ST $502000 $1346590 $0 $1848590 (F) HANSCH LLC 275 HOLIDAY RD APT 1 1840 S GILBERT 1022201002 CORALVILLE, IA, 52241 ST $93560 $227727 $171793 $493080 (F) ROGERS RENTAL LLC 1910 S GILBERT ST 1910 S GILBERT 1022201003 IOWA CITY, IA, 52240 ST $100490 $277990 $156370 $534850 (F) H & E LLC PO BOX 1188 1015389004 IOWA CITY, IA, 0 123 STEVENS DR $198070 $310160 $0 $508230 (F) WILLIAMSON L L C 809 HIGHWAY 1 W 1015389001 IOWA CITY, IA, 52246 215 STEVENS DR $43290 $24200 $0 $67490 (F) WILLIAMSON L L C 809 HIGHWAY 1 W 1015390001 IOWA CITY, IA, 52246 265 STEVENS DR $512510 $516150 $0 $1028660 (F) CAREX PROPERTIES, LLC 1947 PO BOX 621 WATERFRONT 1022130002 IOWA CITY, IA, 0 DR $118440 $89700 $0 $208140 (F) CAREX PROPERTIES, LLC PO BOX 621 WATERFRONT 1022130001 IOWA CITY, IA, 0 DR $31080 $0 $0 $31080 26 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (F) JUSTICIA LLC 1934 BOYRUM ST 1934 BOYRUM 1022131003 IOWA CITY, IA, 52240 ST $64050 $204400 $0 $268450 LIMESTONE LAND SERVICES, (F) LLC 1920 S GILBERT ST 1920 S GILBERT 1022201004 IOWA CITY, IA, 52240 ST $86630 $186890 $0 $273520 (F) HIDALGO PROPERTIES LLC 1930 S GILBERT ST 1930 S GILBERT 1022201005 IOWA CITY, IA, 52240 ST $92990 $232463 $175367 $500820 (F) HIDALGO PROPERTIES LLC 1930 S GILBERT ST 1950 S GILBERT 1022210005 IOWA CITY, IA, 52240 ST $140360 $670464 $446976 $1257800 (F) GILBERT SHOP 2071, LLC 755 MORMON TREK BLVD 2071 S GILBERT 1022213001 IOWA CITY, IA, 52246 ST UNIT 1 $39640 $92670 $0 $132310 MID -EASTERN COUNCIL ON (F) CHEMICAL ABUSE 430 SOUTHGATE AVE 430 SOUTHGATE 1022128002 IOWA CITY, IA, 52240 AVE $278750 $968610 $0 $1247360 (F) ALBRECHT, JAMES A 505 5TH ST 1924 BOYRUM 1022126003 CORALVILLE, IA, 52241 ST $132800 $204420 $0 $337220 (F) JOHNSON COUNTY 913 S DUBUQUE ST STE 101 WATERFRONT 1022129001 IOWA CITY, IA, 52240 DR $3960 $0 $0 $3960 MID -EASTERN COUNCIL ON (F) CHEMICAL ABUSE 238 STEVENS DR 1015382003 IOWA CITY, IA, 52240 238 STEVENS DR $156980 $397740 $0 $554720 (F) SCHINTLER, BRENDA L 1550 S GILBERT ST 1548 S GILBERT 1015384002 IOWA CITY, IA, 52240 ST $154210 $238393 $167497 $560100 (F) D THREE LLC PO BOX 2026 1015384003 IOWA CITY, IA, 0 S GILBERT ST $26540 $1320 $0 $27860 (F) D THREE LLC PO BOX 2026 1015384004 IOWA CITY, IA, 0 204 STEVENS DR $159260 $280840 $0 $440100 (F) D THREE LLC PO BOX 2026 1015384005 IOWA CITY, IA, 0 220 STEVENS DR $176200 $290318 $90632 $557150 HILLS BANK & TRUST (F) COMPANY 131 MAIN ST 1401 S GILBERT 1015377001 HILLS, IA, 52235 ST $741060 $2479700 $0 $3220760 DAVID & LEANN GERARD (F) REVOCABLE TRUST 1807 STEVENS DR 1807 STEVENS 1015387001 IOWA CITY, IA, 52240 DR $150570 $336610 $0 $487180 (F) MMS CONSULTANTS INC 1917 S GILBERT ST 1022203004 IOWA CITY, IA, 52240 S GILBERT ST $88400 $10920 $0 $99320 27 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value SJRE YOUNG FAMILY (F) PARTNERSHIP LLC 1275 DEERFIELD DR 1565 S GILBERT 1015385003 IOWA CITY, IA, 52246 ST $120660 $492040 $0 $612700 IC STORAGE REAL ESTATE (F) INVESTORS, LLC 1820 BOYRUM ST WATERFRONT 1015381002 IOWA CITY, IA, 52240 DR $0 $0 $0 $0 (F) BLACKHAWK PARTNERS L C PO BOX 5519 1015382004 CORALVILLE, IA, 0 260 STEVENS DR $188370 $528960 $0 $717330 IC STORAGE REAL ESTATE (F) INVESTORS, LLC 1820 BOYRUM ST WATERFRONT 1015381001 IOWA CITY, IA, 52240 DR $0 $0 $0 $0 CORNERSTONE CAPITAL (F) PARTNERS, LLC PO BOX 310 1021 GILBERT 1015429001 IOWA CITY, IA, 52240 CT $100080 $211070 $0 $311150 (F) IOWA CITY CRISIS CENTER 1121 GILBERT CT 1121 GILBERT 1015430002 IOWA CITY, IA, 52240 CT $189150 $511040 $0 $700190 (F) LOUGHRAN, JASON SCOTT 1023 ARLINGTON DR 390 HIGHLAND 1015430005 IOWA CITY, IA, 52245 AVE $261530 $469880 $0 $731410 (F) CRISIS CENTER 1121 GILBERT CT 1105 GILBERT 1015430001 IOWA CITY, IA, 52240 CT $224920 $714610 $0 $939530 MAYOR'S YOUTH (F) EMPOWERMENT PROGRAM 407 HIGHLAND CT 407 HIGHLAND 1015431002 IOWA CITY, IA, 52240 CT $135060 $597390 $0 $732450 MAYOR'S YOUTH (F) EMPOWERMENT PROGRAM 407 HIGHLAND CT 1208 GILBERT 1015431003 IOWA CITY, IA, 52240 CT $114000 $164300 $0 $278300 (F) 316, LLC 316 E COURT ST 1207 HIGHLAND 1015431004 IOWA CITY, IA, 52240 CT $120900 $347160 $0 $468060 (F) M & L PARTNERS PO BOX 1428 1311 HIGHLAND 1015431013 IOWA CITY, IA, 0 CT $120900 $339230 $0 $460130 (F) M & L PARTNERS 1311 HIGHLAND CT 416 HIGHLAND 1015431014 IOWA CITY, IA, 52240 AVE $116060 $310190 $0 $426250 (F) M & L PARTNERS 1311 HIGHLAND CT 1215 HIGHLAND 1015431005 IOWA CITY, IA, 52240 CT $120900 $325160 $0 $446060 (F) SMITH, CHARLES A 1216 GILBERT CT 1216 GILBERT 1015431016 IOWA CITY, IA, 52240 CT $87650 $181220 $0 $268870 (F) M & L PARTNERS 1311 HIGHLAND CT 1223 HIGHLAND 1015431009 IOWA CITY, IA, 52240 CT $120900 $314960 $0 $435860 28 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (F) MOORE, JASON 3429 ROHRET RD 1222 GILBERT 1015431008 IOWA CITY, IA, 52246 CT $84630 $226780 $0 $311410 (F) G & L RENTALS LLC 2520 ROCHESTER AVE 1220 GILBERT 1015431017 IOWA CITY, IA, 52245 CT $69520 $135840 $0 $205360 (F) CITY OF IOWA CITY 410 E WASHINGTON ST 1306 GILBERT 1015431010 IOWA CITY, IA, 0 CT $0 $0 $0 $0 (F) WELTER, MICHELE M 50 WHITE OAK PL 408 HIGHLAND 1015431011 IOWA CITY, IA, 52245 AVE $122110 $243550 $0 $365660 (F) HARMON, BRONSON 410 HIGHLAND AVE 412 HIGHLAND 1015431012 IOWA CITY, IA, 52240 AVE $120900 $285596 $182594 $589090 (F) THE SALVATION ARMY 1116 GILBERT CT 1102 GILBERT 1015432001 IOWA CITY, IA, 52240 CT $137870 $421333 $148037 $707240 MAYOR'S YOUTH (F) EMPOWERMENT PROGRAM 407 HIGHLAND CT 408 HIGHLAND 1015432002 IOWA CITY, IA, 52240 CT $125350 $402390 $0 $527740 CORNERSTONE CAPITAL (F) PARTNERS, LLC PO BOX 310 1020 GILBERT 1015428007 IOWA CITY, IA, 52244 CT $199930 $369330 $0 $569260 (F) 316, LLC 316 E COURT ST 1203 HIGHLAND 1015431001 IOWA CITY, IA, 52240 CT $121490 $305250 $0 $426740 (F) RUNDELL, HARVEY P 4108 OVERLOOK RD NE 1208 HIGHLAND 1015432006 SOLON, IA, 52333 CT $135850 $308220 $0 $444070 (F) ALBERHASKY, JAMES M 2445 DEVON CT NE 1212 HIGHLAND 1015432007 IOWA CITY, IA, 52240 CT $134550 $349708 $138692 $622950 (F) PCKL PROPERTIES LLC 1218 HIGHLAND CT 1218 HIGHLAND 1015432008 IOWA CITY, IA, 52240 CT $132600 $234117 $110173 $476890 (F) RS REAL ESTATE, LLC 1310 HIGHLAND CT 1310 1/2 1015432009 IOWA CITY, IA, 52240 HIGHLAND CT $131300 $500290 $0 $631590 (F) RS REAL ESTATE, LLC 1310 HIGHLAND CT 1310 HIGHLAND 1015432010 IOWA CITY, IA, 52240 CT $129350 $385040 $0 $514390 (F) RS REAL ESTATE, LLC 1310 HIGHLAND CT 510 HIGHLAND 1015432011 IOWA CITY, IA, 52240 AVE $131920 $210550 $0 $342470 MAYOR'S YOUTH (F) EMPOWERMENT PROGRAM 407 HIGHLAND CT 418 HIGHLAND 1015432003 IOWA CITY, IA, 52240 CT $133250 $241690 $0 $374940 (F) MVL PROPERTIES LLC 605 KIRKWOOD AVE 521 KIRKWOOD 1015428002 IOWA CITY, IA, 52240 AVE $417700 $1090815 $697405 $2205920 29 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (F) BURTCH RENTALS LLC 1509 400TH ST SW 1022102003 OXORD, IA, 52322 1929 KEOKUK ST $73990 $356070 $0 $430060 SKAY AUTOMOTIVE SERVICE (F) INC 1936 BOYRUM ST 1936 BOYRUM 1022131007 IOWA CITY, IA, 52240 ST $195300 $404250 $0 $599550 (F) RUNDELL, HARVEY P 4108 OVERLOOK RD NE 423 HIGHLAND 1015454001 SOLON, IA, 52333 AVE $204410 $444940 $0 $649350 (F) D & P PROPERTY LLC 526 WOODRIDGE AVE 415 HIGHLAND 1015454002 IOWA CITY, IA, 52245 AVE $191360 $529390 $0 $720750 GRD BIOLIFE VENTURES, (F) LLC 1805 STATE ST STE 101 391 HIGHLAND 1015454003 BETTENDORF, IA, 52722 AVE $342850 $357650 $0 $700500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2185 S GILBERT 1022279001 IOWA CITY, IA, 52245 ST $811800 $701870 $0 $1513670 PEPPERWOOD PROPERTIES, (F) LLC 755 MORMON TREK BLVD 1022108009 IOWA CITY, IA, 52246 $179840 $49460 $0 $229300 PARKVIEW EVANGELICAL (F) FREE CHURCH 15 FOSTER RD 1027 HIGHWAY 6 1023243001 IOWA CITY, IA, 52245 E $459010 $2306920 $0 $2765930 PEPPERWOOD PROPERTIES, (F) LLC 755 MORMON TREK BLVD 1022108002 IOWA CITY, IA, 52246 $49050 $14190 $0 $63240 TIMBERLINE PROPERTIES, (F) LLC 4415 HWY 6 907 HIGHWAY 6 1022108004 SUGARLAND, TX, 77478 E $185070 $605010 $0 $790080 (F) KAY DEVELOPERS LLC 1524 KIMBER LN 841 HIGHWAY 6 1022108005 EVANSVILLE, IN, 47715 E $470750 $587950 $0 $1058700 (F) WWJ INVESTMENTS 1850 MCCLOUD PL NE 1022103002 CEDAR RAPIDS, IA, 52402 609 OLYMPIC CT $161460 $222630 $0 $384090 (F) BLACKHAWK PARTNERS L C PO BOX 5519 425 HIGHWAY 6 1015460002 CORALVILLE, IA, 0 E $743000 $1808460 $0 $2551460 WALSH-MYERS (F) ENTERPRISES LLC PO BOX 31 1705 BOYRUM 1015460001 NORTH LIBERTY, IA, 52317 ST $675750 $1600210 $0 $2275960 (F) HY-VEE INC 1720 5820 WESTOWN PKWY WATERFRONT 1015460004 WEST DES MOINES, IA, 50266 DR $2220000 $5647000 $0 $7867000 30 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value SOUTH GILBERT (F) PROPERTIES LLC 1519 S GILBERT ST 1519 S GILBERT 1015385001 IOWA CITY, IA, 52240 ST $185470 $636630 $0 $822100 (F) CITY OF IOWA CITY 410 E WASHINGTON ST 1015385002 IOWA CITY, IA, 0 S GILBERT ST $0 $0 $0 $0 (F) SCHMUCKER, EDWARD I 2957 E WASHINGTON ST 1202 HIGHLAND 1015432005 IOWA CITY, IA, 52245 CT $158490 $255210 $0 $413700 (F) EVANS, EVAN C 4809 RAPID CREEK RD NE 424 HIGHLAND 1015432004 IOWA CITY, IA, 52240 CT $249830 $518090 $0 $767920 (F) CITY OF IOWA CITY 410 E WASHINGTON ST 1015386001 IOWA CITY, IA, 0 STEVENS DR $0 $0 $0 $0 (F) ESTATE JAVA LLC 150 STEVENS DR 1015385004 IOWA CITY, IA, 52240 150 STEVENS DR $186400 $321940 $0 $508340 (F) K & G 1335 OAKLAWN AVE 1800 STEVENS 1015388002 IOWA CITY, IA, 52245 DR $128200 $122480 $0 $250680 STEVENS DRIVE INVESTORS (F) LLC 4972 400th ST SE 1839 STEVENS 1022204001 IOWA CITY, IA, 52240 DR $97940 $0 $0 $97940 SOUTHSIDE MINI STORAGE (F) PARTNERSHIP 120 SOUTHGATE AVE 120 SOUTHGATE 1022204006 IOWA CITY, IA, 52240 AVE $366080 $456140 $0 $822220 HSPS REAL ESTATE (F) HOLDINGS, LLC 160 SOUTHGATE AVE STE A 160 SOUTHGATE 1022205001 IOWA CITY, IA, 52240 AVE $162540 $437820 $0 $600360 (F) HERKY TD LLC PO BOX 460389 2003 S GILBERT 1022206003 HOUSTON, TX, 70056 ST $257630 $846330 $0 $1103960 (F) T & C INVESTMENTS LLC PO BOX 2746 2001 STEVENS 1022207001 IOWA CITY, IA, 52244 DR $110250 $260050 $0 $370300 (F) HERKY TD LLC PO BOX 460389 2030 STEVENS 1022212001 HOUSTON, TX, 70056 DR $225000 $6090 $0 $231090 CORNERSTONE CAPITAL (F) PARTNERS, LLC PO BOX 310 1012 GILBERT 1015428010 IOWA CITY, IA, 52240 CT $177780 $216260 $0 $394040 SOUTHSIDE DEVELOPERS, (F) LC 711 S GILBERT ST 501 SOUTHGATE 1022133012 IOWA CITY, IA, 52240 AVE $181550 $18890 $0 $200440 31 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value SHELTER HOUSE COMMUNITY SHELTER AND (F) TRANSITION SERVIC PO BOX 3146 429 SOUTHGATE 1022133013 IOWA CITY, IA, 0 AVE $194150 $0 $1954800 $2148950 (F) 1901 BROADWAY ST, LLC 2000 JAMES ST STE 111 1901 BROADWAY 1023229001 CORALVILLE, IA, 52241 ST $440800 $340082 $469638 $1250520 CASEY'S MARKETING (F) COMPANY 1 CONVENIENCE BLVD SE 1904 BROADWAY 1023230008 ANKENY, IA, 0 ST $850800 $1040780 $0 $1891580 (F) STEVE, VERNON D 611 2 WOODLAND DR NE HOLLYWOOD 1015459003 IOWA CITY, IA, 52240 BLVD $99780 $155560 $0 $255340 (F) WILLIAMS, MELISSA J 1441 OAKLAWN AVE 1022126002 IOWA CITY, IA, 52245 538 OLYMPIC CT $156310 $190900 $0 $347210 (F) DECOSTER FAMILY TRUST 615 1820 BOYRUM ST HOLLYWOOD 1015458005 IOWA CITY, IA, 52240 BLVD $72100 $183940 $0 $256040 (F) DECOSTER FAMILY TRUST 1820 BOYRUM ST 1820 BOYRUM 1015458006 IOWA CITY, IA, 52240 ST $350950 $673410 $0 $1024360 (F) CITY OF IOWA CITY 410 E WASHINGTON ST 1015378001 IOWA CITY, IA, 0 $0 $0 $0 $0 (F) B & Z RENTALS LLC 1841 S GILBERT ST 1841 S GILBERT 1022203006 IOWA CITY, IA, 52240 ST $166230 $221050 $0 $387280 (F) MMS CONSULTANTS INC 1917 S GILBERT ST 1917 S GILBERT 1022203008 IOWA CITY, IA, 52240 ST $208080 $907700 $0 $1115780 NEXT LEVEL ONE REAL ESTATE, LLC (F) 2346 MORMON TREK BLVD STE 2000 303 SOUTHGATE 1022202003 IOWA CITY, IA, 52246 AVE $990500 $1438760 $0 $2429260 NEXT LEVEL REAL ESTATE, LLC (F) 2346 MORMON TREK BLVD STE 2000 1022208005 IOWA CITY, IA, 52246 $910 $0 $0 $910 (F) MURRAY, JAMES S 1515 HAWKEYE DR 367 SOUTHGATE 1022136001 HIAWATHA, IA, 52233 AVE $221780 $575240 $0 $797020 (F) INSPIRED MEX, LLC 1877 N ROCK RD 1406 S GILBERT 1015392002 WICHITA, KS, 67206 ST $396000 $1005400 $0 $1401400 (F) EVC IOWA CITY, LLC 12612 W ALAMEDA PKWY 1404 S GILBERT 1015392003 LAKEWOOD, CO, 80228 ST $639000 $1659180 $0 $2298180 32 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (F) ALFREDA INVESTMENTS LLC 3322 MUSCATINE AVE 1534 S GILBERT 1015383001 IOWA CITY, IA, 52240 ST $408380 $1511580 $0 $1919960 (F) ATI PROPERTIES, LLC 1410 1950 BROWN DEER TRL WATERFRONT 1015392001 CORALVILLE, IA, 52241 DR $237370 $611300 $0 $848670 IC STORAGE REAL ESTATE (F) INVESTORS, LLC 1423 1820 BOYRUM ST WATERFRONT 1015382005 IOWA CITY, IA, 52240 DR $338350 $523220 $0 $861570 (F) MIDWESTONE BANK PO BOX 1700 1015492001 IOWA CITY, IA, 0 1906 KEOKUK ST $508350 $1574950 $0 $2083300 IOWA MENNONITE (F) CROWDED CLOSET 851 HIGHWAY 6 E UNIT 101 851 HIGHWAY 6 1022110001 IOWA CITY, IA, 52240 E UNIT 101 $353850 $2397670 $0 $2751520 PEPPERWOOD PLAZA (F) ASSOCIATION 755 MORMON TREK BLVD 1022108012 IOWA CITY, IA, 52246 $1477240 $499790 $0 $1977030 (F) PEPPERWOOD LOT 2, LLC 755 MORMON TREK BLVD 1022108013 IOWA CITY, IA, 52246 1926 KEOKUK ST $236270 $657460 $0 $893730 (F) YEAGER, JEANINE M 4935 420TH ST SE 1022109002 IOWA CITY, IA, 52240 2050 KEOKUK ST $45980 $121010 $0 $166990 (F) YEAGER, JEANINE M 4935 420TH ST SE 800 CROSS 1022109003 IOWA CITY, IA, 52240 PARK AVE $11490 $0 $108140 $119630 (F) YEAGER, JEANINE M 4935 420TH ST SE 802 CROSS 1022109004 IOWA CITY, IA, 52240 PARK AVE $11490 $0 $108140 $119630 (F) YEAGER, JEANINE M 4935 420TH ST SE 804 CROSS 1022109005 IOWA CITY, IA, 52240 PARK AVE $11490 $0 $108140 $119630 (F) YEAGER, JEANINE M 4935 420TH ST SE 806 CROSS 1022109006 IOWA CITY, IA, 52240 PARK AVE $11490 $0 $108140 $119630 (F) GILBERT SHOP 2071, LLC 755 MORMON TREK BLVD 2071 S GILBERT 1022213002 IOWA CITY, IA, 52246 ST UNIT 2 $39640 $101840 $0 $141480 MCDONOUGH STRUCTURES, (F) INC 2071 S GILBER ST BAY 3 2071 S GILBERT 1022213003 IOWA CITY, IA, 52240 ST UNIT 3 $39640 $95660 $0 $135300 (F) GILBERT SHOP 2071, LLC 755 MORMON TREK BLVD 2071 S GILBERT 1022213004 IOWA CITY, IA, 52246 ST UNIT 4 $39640 $99450 $0 $139090 (F) GILBERT SHOP 2071, LLC 755 MORMON TREK BLVD 2071 S GILBERT 1022213005 IOWA CITY, IA, 52246 ST UNIT 5 $39640 $102630 $0 $142270 33 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value BARKER, DAVID (F) 114 1/2 E COLLEGE ST, SUITE 1 2071 S GILBERT 1022213006 IOWA CITY, IA, 52240 ST UNIT 6 $39640 $95660 $0 $135300 MCDONOUGH STRUCTURES, (F) INC 2071 S GILBER ST BAY 3 2071 S GILBERT 1022213007 IOWA CITY, IA, 52240 ST UNIT 7 $39640 $107510 $0 $147150 MCDONOUGH STRUCTURES, (F) INC 2071 S GILBER ST BAY 3 2071 S GILBERT 1022213008 IOWA CITY, IA, 52240 ST UNIT 8 $39640 $100480 $0 $140120 MCDONOUGH STRUCTURES, (F) INC 2071 S GILBER ST BAY 3 2071 S GILBERT 1022213009 IOWA CITY, IA, 52240 ST UNIT 9 $39640 $95660 $0 $135300 KT INVESTMENT (F) PROPERTIES, LLC 610 SCHUMACHER BLVD 2071 S GILBERT 1022213010 DENVER, IA, 50622 ST UNIT 10 $39640 $95660 $0 $135300 KT INVESTMENT (F) PROPERTIES, LLC 610 SCHUMACHER BLVD 2071 S GILBERT 1022213011 DENVER, IA, 50622 ST UNIT 11 $39640 $95660 $0 $135300 KT INVESTMENT (F) PROPERTIES, LLC 610 SCHUMACHER BLVD 2071 S GILBERT 1022213012 DENVER, IA, 50622 ST UNIT 12 $39640 $100480 $0 $140120 (F) MVL PROPERTIES LLC 605 KIRKWOOD AVE 605 KIRKWOOD 1015428009 IOWA CITY, IA, 52240 AVE $414780 $857330 $0 $1272110 (F) GRD PEPPERWOOD LLC 1805 STATE ST STE 101 851 HIGHWAY 6 1022110002 BETTENDORF, IA, 52722 E UNIT 102 $159190 $1202590 $0 $1361780 (F) MGNS, LLC PO BOX 5591 851 HIGHWAY 6 1022110003 CORALVILLE, IA, 52241 E UNIT 103 $169020 $1266150 $0 $1435170 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214002 IOWA CITY, IA, 52245 DR UNIT 2 $36590 $78010 $0 $114600 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214003 IOWA CITY, IA, 52245 DR UNIT 3 $36590 $88600 $0 $125190 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214004 IOWA CITY, IA, 52245 DR UNIT 4 $36590 $74910 $0 $111500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214005 IOWA CITY, IA, 52245 DR UNIT 5 $36590 $74910 $0 $111500 34 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214006 IOWA CITY, IA, 52245 DR UNIT 6 $36590 $74910 $0 $111500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214007 IOWA CITY, IA, 52245 DR UNIT 7 $36590 $74910 $0 $111500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214008 IOWA CITY, IA, 52245 DR UNIT 8 $36590 $78010 $0 $114600 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214009 IOWA CITY, IA, 52245 DR UNIT 9 $36590 $74880 $0 $111470 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214010 IOWA CITY, IA, 52245 DR UNIT 10 $36590 $80840 $0 $117430 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214011 IOWA CITY, IA, 52245 DR UNIT 11 $36590 $74910 $0 $111500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214012 IOWA CITY, IA, 52245 DR UNIT 12 $36590 $74910 $0 $111500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214013 IOWA CITY, IA, 52245 DR UNIT 13 $36590 $74910 $0 $111500 IOWA CITY COMMUNITY (F) SCHOOL DISTRICT 1725 N DODGE ST 2045 STEVENS 1022214014 IOWA CITY, IA, 52245 DR UNIT 14 $36590 $74910 $0 $111500 (F) MOORE, CATHERINE A 750 E FOSTER RD #210 1229 GILBERT 1015430008 IOWA CITY, IA, 52245 CT $239960 $515030 $151050 $906040 ARNOLD MOTOR SUPPLY, (F) LLP 601 1ST AVE SW 1213 GILBERT 1015430006 SPENCER, IA, 51301 CT $285650 $576890 $0 $862540 (F) RUIZ, DAVID 1949 1134 APPLE CT WATERFRONT 1022130008 IOWA CITY, IA, 52240 DR $65320 $57080 $0 $122400 CHRISTOPHER KEITH (F) GUTHRIE TRUST 655 PO BOX 22845 HOLLYWOOD 1015458001 OAKLAHOMA CITY, OK, 0 BLVD $627130 $1067250 $0 $1694380 (F) SOUTHSIDE SPIRITS LLC 1130 DUCK CREEK DR 1022102001 IOWA CITY, IA, 52246 1921 KEOKUK ST $119950 $224800 $0 $344750 35 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value DOMESTIC VIOLENCE INTERVENTION PROGRAM (F) INC 1105 S GILBERT CT #300 1022103001 IOWA CITY, IA, 52240 612 OLYMPIC CT $192370 $73630 $0 $266000 (F) KWIK TRIP, INC 1626 OAK ST 1015493005 LACROSSE, WI, 54602 $912040 $1047910 $0 $1959950 (F) JOHNSON COUNTY 913 S DUBUQUE ST STE 101 300 SOUTHGATE 1022210006 IOWA CITY, IA, 52240 AVE $931020 $207060 $0 $1138080 (F) LAMAR ADVERTISING 5507 MILDRED LN NE 1015428008 CEDAR RAPIDS, IA, 52402 $0 $2480 $0 $2480 (F) AT&T 754 PEACHTREE ST NE 1022108011 ATLANTA, GA, 30308 $0 $83660 $0 $83660 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1014489003 IOWA CITY, IA, 52240 1550 S 1ST AVE $148320 $919320 $0 $1067640 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1014489004 IOWA CITY, IA, 52240 1570 S 1ST AVE $297550 $629560 $1316010 $2243120 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1023102002 IOWA CITY, IA, 52240 1576 S 1ST AVE $86450 $0 $68150 $154600 GOODWILL INDUSTRIES OF (G) THE HEARTLAND 1410 S 1 STAVE 1014489001 IOWA CITY, IA, 52240 1470 S 1ST AVE $106470 $252880 $0 $359350 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1023101001 IOWA CITY, IA, 52240 1486 S 1 ST AVE $89380 $347133 $284017 $720530 VISITING NURSES (G) ASSOCIATION 1524 SYCAMORE ST 1524 SYCAMORE 1014457006 IOWA CITY, IA, 52240 ST $243580 $910280 $0 $1153860 RIC 17 LTD (G) 21333 HAGGERTY RD STE 300 1014483001 NOVI, MI, 48375 1504 MALL DR $216600 $415290 $0 $631890 (G) AMBROSE, GERRY 250 12TH AVE STE 150 1014486007 CORALVILLE, IA, 52241 1621 S 1ST AVE $304000 $494620 $0 $798620 IOWA CITY COMMUNITY (G) SCHOOL DISTRICT 1725 N DODGE ST 1014482009 IOWA CITY, IA, 52245 1528 MALL DR $456880 $4712880 $0 $5169760 (G) REAL MONEY INC 1580 MALL DR 1014459004 IOWA CITY, IA, 52240 1580 MALL DR $172000 $607780 $0 $779780 (G) BEGLEY COMPANY PO BOX 54910 1930 LOWER 1014459005 LEXINGTON, KY, 0 MUSCATINE RD $197140 $200020 $0 $397160 36 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value 1910 LOWER MUSCATINE, (G) LLC 2000 JAMES ST STE 119A 1014458004 CORALVILLE, IA, 52241 $15050 $0 $0 $15050 1910 LOWER MUSCATINE, (G) LLC 2000 JAMES ST STE 119A 1910 LOWER 1014458005 CORALVILLE, IA, 52241 MUSCATINE RD $255020 $395060 $0 $650080 (G) BJS ENTERPRISES LC PO BOX 466 1921 LOWER 1023105002 SHENANDOAH, IA, 0 MUSCATINE RD $153600 $13620 $0 $167220 ADRIAN & PIPER (G) ENTERPRISES LLC 1940 LOWER MUSCATINE RD 1940 LOWER 1014488003 IOWA CITY, IA, 52240 MUSCATINE RD $200560 $517620 $0 $718180 STILES REAL ESTATE (G) CORPORATION 722 OAKLAND AVE 1950 LOWER 1014488004 IOWA CITY, IA, 52240 MUSCATINE RD $211730 $766840 $0 $978570 (G) BFLS PROPERTIES LLC 5630 GABLE AVE SW 1920 LOWER 1023104002 KALONA, IA, 52247 MUSCATINE RD $184540 $327490 $0 $512030 KIRKWOOD COMMUNITY (G) COLLEGE PO BOX 2068 1828 LOWER 1014452006 CEDAR RAPIDS, IA, 0 MUSCATINE RD $102630 $0 $0 $102630 (G) AMBROSE, GERRY 250 12TH AVE STE 150 1014486008 CORALVILLE, IA, 52241 1555 S 1ST AVE $571400 $1400740 $0 $1972140 (G) LIBERTY GROWTH IV LC 1700 FIRST AVE #1 1700 S 1ST AVE 1023103001 IOWA CITY, IA, 52240 STE 1 $10250 $24520 $0 $34770 (G) COOK, BENJAMIN T 1843 CHELSEA CT 1700 S 1 ST AVE 1023103002 IOWA CITY, IA, 52240 STE 1.1 $4830 $12550 $0 $17380 (G) COOK, BENJAMIN T 1843 CHELSEA CT 1700 S 1 ST AVE 1023103003 IOWA CITY, IA, 52240 STE 2 & 3 $33240 $64250 $0 $97490 (G) SMITH, PAMELA L 3029 CLOVER ST 1700 S 1 ST AVE 1023103004 IOWA CITY, IA, 52245 STE 4 $35600 $70150 $0 $105750 KAUFFMANN-FIRKINS, (G) JOANN R 2935 480TH ST SW 1700 S 1 ST AVE 1023103005 IOWA CITY, IA, 52240 STE 5 $26520 $53370 $0 $79890 KAUFFMAN-FIRKINS, JOANN (G) R 2935 480TH ST SW 1700 S 1 ST AVE 1023103006 IOWA CITY, IA, 52240 STE 6 $29460 $65610 $0 $95070 (G) FIRKINS, JEFFREY A 2935 480TH ST SW 1700 S 1 ST AVE 1023103007 IOWA CITY, IA, 52240 STE 7 $29230 $53120 $0 $82350 37 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (G) FIRKINS, JEFFREY A 2935 480TH ST SW 1700 S 1 ST AVE 1023103008 IOWA CITY, IA, 52240 STE 8 $19560 $38430 $0 $57990 (G) TANK, SUSAN WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103009 IOWA CITY, IA, 52245 STE 9 $32890 $73110 $0 $106000 (G) TANK, SUSAN WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103010 IOWA CITY, IA, 52245 STE 10 $30760 $68400 $0 $99160 (G) TANK, SUSAN WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103011 IOWA CITY, IA, 52245 STE 11A $75910 $129040 $0 $204950 (G) TANK, SUSAN WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103012 IOWA CITY, IA, 52245 STE 11B $111730 $184890 $0 $296620 (G) TANK, SUSAN WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103013 IOWA CITY, IA, 52245 STE 12 & 13 $21450 $44440 $0 $65890 (G) UNITED ACTION FOR YOUTH PO BOX 892 1700 S 1 ST AVE 1023103014 IOWA CITY, IA, 0 STE 14 $116330 $189000 $0 $305330 IOWA CITY COMMUNITY (G) SCHOOL DISTRICT 1725 N DODGE ST 1700 S 1 ST AVE 1023103015 IOWA CITY, IA, 52245 STE 15 $38900 $74690 $0 $113590 IOWA CITY COMMUNITY (G) SCHOOL DISTRICT 1725 N DODGE ST 1700 S 1 ST AVE 1023103016 IOWA CITY, IA, 52245 STE 16 $24640 $49540 $0 $74180 (G) UNITED ACTION FOR YOUTH PO BOX 892 1700 S 1 ST AVE 1023103017 IOWA CITY, IA, 0 STE 17 $65650 $116390 $0 $182040 (G) RENNING PROPERTIES LLC 1425 PHOENIX DR 1700 S 1ST AVE 1023103018 IOWA CITY, IA, 52246 STE 18 $16390 $32170 $0 $48560 UNIVERSITY OF IOWA (G) EMPLOYEES UNION 1700 1 ST AVE STE 19 1700 S 1 ST AVE 1023103019 IOWA CITY, IA, 52240 STE 19 $31350 $56850 $0 $88200 (G) TANK, SUSAN WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103020 IOWA CITY, IA, 52245 STE 20 $21100 $41440 $0 $62540 (G) LEVERENTZ, PHILIP K 11154 HIGHRIDGE DR 1700 S 1ST AVE 1023103021 DUBUQUE, IA, 52003 STE 21 $32890 $68940 $0 $101830 (G) RENNING PROPERTIES LLC 1425 PHOENIX DR 1700 S 1ST AVE 1023103022 IOWA CITY, IA, 52246 STE 22 $24390 $48980 $0 $73370 THE PRESBYTERY OF EAST (G) IOWA 1700 1 ST AVE #23 1700 S 1 ST AVE 1023103023 IOWA CITY, IA, 52240 STE 23 $74020 $125830 $0 $199850 38 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (G) TANK, SUSAN LEE WOLF 624 ST THOMAS CT 1700 S 1 ST AVE 1023103024 IOWA CITY, IA, 52245 STE 24 $30530 $60230 $0 $90760 (G) RENNING PROPERTIES LLC 1425 PHOENIX DR 1700 S 1ST AVE 1023103025 IOWA CITY, IA, 52246 STE 25 $168550 $268920 $0 $437470 (G) G3 IOWANO LLC 1700 S FIRST AVE #26 1700 S 1ST AVE 1023103026 IOWA CITY, IA, 52240 STE 26 $9660 $22970 $0 $32630 (G) CARLSON LAW, PLC 1700 S 1 ST AVE STE 27 1700 S 1 ST AVE 1023103027 IOWA CITY, IA, 52240 STE 27 $16140 $33520 $0 $49660 (G) G3 IOWANO, LLC 2677 HEATHER ELEN AVE 1700 S 1ST AVE 1023103028 BETTENDORF, IA, 52722 STE 28 $12020 $28790 $0 $40810 (G) HENN REVOCABLE TRUST 275 W MICKEY MANTLE PATH 1700 S 1ST AVE 1023103029 HERNANDO, FL, 34442 STE 29 $34650 $77090 $0 $111740 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1023102001 IOWA CITY, IA, 52240 1556 S 1ST AVE $155610 $539287 $459393 $1154290 (G) CHARM HOMES LLC 409 KIRKWOOD AVE STE A 1014481001 IOWA CITY, IA, 52240 1552 MALL DR $227200 $399660 $0 $626860 GOODWILL INDUSTRIES OF (G) THE HEARTLAND 1410 S 1 STAVE 1014485003 IOWA CITY, IA, 52240 1500 S 1 ST AVE $232090 $43740 $0 $275830 (G) WENDALE REALTY 998 FREMONT AVE 1014489002 DUBUQUE, IA, 52003 1480 S 1ST AVE $224980 $558750 $0 $783730 (G) 1ST AVENUE MINI MALL, LLC 1618 WILSON ST 1014486006 IOWA CITY, IA, 52245 1705 S 1 ST AVE $851000 $2013940 $0 $2864940 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1013353007 IOWA CITY, IA, 52240 1476 S 1 STAVE $213490 $277083 $209227 $699800 (G) GEMP LLC 62 WHITE OAK PL 1014480001 IOWA CITY, IA, 52245 1558 MALL DR $342300 $745380 $0 $1087680 (G) BJS ENTERPRISES LC PO BOX 466 LOWER 1023105003 SHENANDOAH, IA, 0 MUSCATINE RD $118720 $27060 $0 $145780 (G) S & M EAST LC 1486 S 1 ST AVE STE A 1014489005 IOWA CITY, IA, 52240 $150280 $1760 $0 $152040 (G) BJS ENTERPRISES LC PO BOX 466 1901 LOWER 1023105005 SHENANDOAH, IA, 0 MUSCATINE RD $257460 $394410 $0 $651870 CORE SYCAMORE TOWN (G) CENTER LLC 1600 DOVE ST STE 450 1600 SYCAMORE 1014457007 NEWPORT BEACH, CA, 92660 ST $4056300 $8336100 $0 $12392400 39 Highway Commercial Urban Revitalization Plan (map zone) Property Land Building Dwelling Total Parcel No. Deed Holder Address Value Value Value Value (G) M 0 M P LLC 1570 MALL DR STE 1 1014480002 IOWA CITY, IA, 52240 1570 MALL DR $206400 $1435340 $0 $1641740 (G) M 0 M P LLC 1570 MALL DR STE 1 1014480003 IOWA CITY, IA, 52240 MALL DR $133600 $22450 $0 $156050 FOUR SEASONS CAR WASH (G) CO 2545 BLUFFWOOD LN 1014483002 IOWA CITY, IA, 52245 1455 S 1 ST AVE $358400 $428230 $0 $786630 (G) SUEPPEL, FRANCIS W JR 1501 MALL DR 1014490005 IOWA CITY, IA, 52240 1501 MALL DR $71360 $252810 $0 $324170 (G) SHERRY, WENDY L 4768 FOREST VIEW CIR NE 1014490006 IOWA CITY, IA, 52240 1505 MALL DR $71360 $333020 $0 $404380 (G) PLANELEASE LLC 151518TH ST SW 1014490007 MASON CITY, IA, 50401 1509 MALL DR $71360 $424830 $0 $496190 (G) MORELAND, MARTHA P 1513 MALL DR 1014490008 IOWA CITY, IA, 52240 1513 MALL DR $71360 $550500 $0 $621860 (G) MCDONALDS CORPORATION 105 5TH ST 1861 LOWER 1014457002 CORALVILLE, IA, 52241 MUSCATINE RD $0 $978640 $0 $978640 40 Highway Commercial Urban Revitalization Plan Exhibit 4 Existing Zoning map 1 41 Highway Commercial Urban Revitalization Plan s 0 F O O 9 � E � m L N N U /4 N Sun Down Rdg o o m m m _ m u- ouac 3S pa auea n� � o m m 5 `o U a mm m 3 O Q N mN °N UCO - b� III,.. w ,p aPis - / i W !6 � m ti��i�bkji. N L � T 2- 0 o a Westside 0 N N X ' W d D, \e Q� 0 N Ms Pb Aw>1 - - N V n u H N 0 � v p .L Ce u ce N\ rnN� i 0 " E a s o E 0 ° o E v_ o V N a0 H > O E s `EE N m _j pE S Z WO! L V 41 Highway Commercial Urban Revitalization Plan Exhibit 4 Existing Zoning map 2 42 Highway Commercial Urban Revitalization Plan I'DS R`"erside Of d H - 1 N O O Ido _ % W N 0 d V WQ Q J d U U a m y � c m \\ C N m \ O ar 3 LU Z� N u� W (6N Q Z v U •� 0 � 0 '4�% 3� c w g}17�i ° w °? Q an d ta r o a LhX W Ruppert R6 4 m D N y � V N O U d C•- O E O d a v s= c a 0 V s � Of MpE V S Z S 42 Highway Commercial Urban Revitalization Plan 0 LJ_ 0 N C X Lu is apeM S 1st Ave Id Ave Exhibit 4 Existing Zoning map 3 ve n Z P� N c w � 4th Ave L j O. U m R �Jyoa To a t vG .a o m � m 5th Ave�� � m m � � 3 0) w � l6 O N 0.— r Z C^ ;; U(0 6th Ave Aa ® O W N u —lr 4 'a 0`CC N V L Q d t Pine St `o 0 Ash St is u!plueJj Yewell St d 4 Q > m a is a6wa QO n 1S Fen peojs O O 1S haeW Y to i Q c m is NnHoe,\j 3 m to U � . a ' is a BU210 yD Maiden L C do 0 c do Lu S Gilbert St c4 L o �O n �N rn � 3 > n � o U Z ,a 0 0 3� Western Rd So a> W > o o U Il � a o � U Bancroft Dr Davis St jD jolRel w `o Z W N a doT U 0 N L j O. U m R OO vG .a m � m � � m m � � 3 0) w � l6 O N 0.— r Z C^ ;; U(0 mo Aa ® O W N u —lr L Q `o 'a V L Q d C J H O a N L) '4 O f6 (/) u N V rO " E E a gc V E o t C) N s Q7 � C Ol Q QEE V 13 l7 Z 43 Highway Commercial Urban Revitalization Plan Exhibit S Existing Land Use map 4 Highway ConnnJdk Urban ke 4a[z! aio /a 3� } \ } 1 ` \ I \ Sun Down e S a f , Z�. \) ■ 22 .H ,..e :; .e .;,: i ) o : ~ ^ ! )) « k§ ■ . f| 3 Ik 2 ~ ®S / 2 2% ® \} /Qa +w» 7 � , LU > a \ « � e �N } ez a m: % y \ � ] \) k § 2 E § $) 'Q:)" 4 Highway ConnnJdk Urban ke 4a[z! aio /a Exhibit 5 Existing Lana Use map 2 45 Highway Commercial Urban Rei!lzlaio Pa / © sJRjV,S k ,£ Of & \§ )\ / w 2 § \ \ 7k c o ; a a -.1 ® c ° 2» /0a 7 X «_ 76 ] 7 ) § / ) / a £ ^. ( ® � f 0 2 0 45 Highway Commercial Urban Rei!lzlaio Pa 1s aPeM S 1 st Ave Exhibit 5 Existing Land Use map 3 nd Ave Ave �+ ��m o n`o oa 4th Ave GO aW °y = a I I m V m � 5th Ave c �m aW v .a t6 d m m m 5 3 Ez 6th Ave O � 3 s 2 \a Jyu v Tp,. -�"��B o .,� 3 Lj St `O n m IIS It 1S auid o O Ash St C � H o n 1S u!IHueJj Yewell St m j > a a a m a O ]S a6PRi > � d LL IS �(empea8 a O 3 y 1S AQJe Vy Y d c 1S Nn4oeN � rn o, ' Q. U Y o� lS eue!4 fH 10 Maiden L M U., ,a 0 3� Western Rd 4 m i c o U �m LL J C � J. d T O v U H Bancroft Dr Davis St JG Jo!6e1 46 Highway Commercial Urban Revitalization Plan ra �+ ��m o n`o a aW U m V m � c v .a t6 d m m O � 3 s 2 Z v Tp,. -�"��B o .,� 3 Lj ll!j `O m - IIS It EF i a L Q C � H o n 46 Highway Commercial Urban Revitalization Plan Exhibit 6 Proposed Land Use map 1 vo o b w U Q J Y d D d 00 O ~ J y O V CS � A O q m m {G y W t O N U N Sun Down Rdg o � m c O Z % dt o a y o U V W Pei auep a W U OI W C � WIN ' Qii�CP'\b ci C y 3 Q L 2� N m� NN N o - N Z O v U)O '0, W �y U c € q iYiL� 'a- ui J \ W C '� y -Q If/ o ..Wg y Westside N Iz+I u Q a 0 a F o a Q sa 0 s Dr L J�0 a � Q o N � � •N T MS Pb All!N •E E LE e C l �\ y O O N C N C N �Q G r X X Fz U 01 0 J 47 Highway Commercial Urban Revitalization Plan Exhibit 6 Proposed Land Use map 2 48 Highway Commercial Urban Revitalization Plan is OPeM S 1 st Ave I Ave Exhibit 6 Proposed Land Use map 3 c ? u c v N oa 4th Ave rn �J5 = m 0, �o N 5th Ave �m oem LL 6th Ave \Cet Y o v yo e� 1� m �O Q m IS auld o m O Ash St 1S ulgeeJj Yewell St m °1 4 Q >` 1S a6pla m Dace C m - C u. 1S �(ennpeo�g 0 0 3 Y1S Ro�ew m � ¢ S _ C IS rn>fo" L U I Y � O� a 1S eue!D I � a �N Maiden L _ 4 c S Gilbert St O y c] ui 0- y m � h ao U 2 �a m 0 3� � Western Rd S ¢>o 0 LL. J c a J T � mm U h Bancroft Dr Davis St JD JolRel a Z m y d o a ao U m a� � U m R C w v .o m m C c i= m W t6 r 23 � N umi 6 O o . > z— v55 Y U V N v m c ,_o LLI 'N C -llij O a vi -E m {�+ 10 V Q d t c F o a 49 Highway Commercial Urban Revitalization Plan Item Number: 15. AL CITY OF IOWA CITY =�c�- COUNCIL ACTION REPORT April 20, 2021 Resolution directing the advertisement for sale of $11,325,000* (subject to adjustment per terms of offering) General Obligation Bonds, series 2021, and approving electronic bidding procedures and distribution of the preliminary official statement. Prepared By: Dennis Bockenstedt, Finance Director Reviewed By: Ashley Monroe, Assistant City Manager Fiscal Impact: Adopted as part of the FY2021 Revised Budget and 2021-2025 Capital Improvement Program Recommendations: Staff: Approval Attachments: Preliminary Official Statement Resolution Executive Summary: This is a resolution to advertise for the sale, to approve the electronic bidding procedures, and to approve the distribution of the preliminary official statement for the 2021 General Obligation Bonds. This resolution establishes the sale time and date and bidding procedures for the 2021 General Obligation Bonds. It also accepts and approves the Preliminary Official Statement or sale document for the bonds. Background /Analysis: The City issues bonds every spring to fund the current year's capital improvement projects listed in the Five -Year Capital Improvement Program. The City intends to take bids for $11,325,000 in general obligation bonds on May 4 and then close on the bond sale on June 1. The FY2021 Revised Budget and FY2022 Adopted Budget have been approved with the necessary property tax levies needed for repayment of the 2021 General Obligation Bonds. The City's long-term planning has incorporated the 2021 proposed bond issue and repayment schedule. City Council approval of the resolution directing the advertisement for sale, approving electronic bidding procedures, and distribution of the preliminary official statement is the next required action to facilitate the sale and issuance of the 2021 General Obligation Bonds. ATTACHMENTS: Description Preliminary Official Statement Resolution New Icxrm Investment Rating: Date of Sale Tuesday, Miry 4, 2021 (Alhernnte Sid Methods) Moody's Investors Service.. Bsewcore 10:30and I100A.M_ C.D.T. K losed Speer4nerion) (Baling Requested) Before 11:00 A.M., C.D.T. (Scaled Sidi) Official Statement .a.smingonipha its h N„mn vAhhe iscoon,,-rc'..n t(sun,I undevis e,cw I and Ise wunus owninede,sphan,e 1111?111v, 1' r,jdetitle) hRel e ,e( u.),Tout_., amended Me-eode 7.a ndeh,d, _, Issues eoex tit, ,ehlet's ell - „nho,e,,.t„e,v.ov rie nand it lot rJveefes, aset at all,) gas I ,nom: nIci e;l on III, hold nests h,cammo ,e ("ne, Ifna,. The hod. I ill xOTI T9gno,ed it, ifithfic dhe,l h ,hdgm... I, ".S,,"T.INT1d TTERS 'if,, em-/ra,mre III failed dvco,Ion $11,325,BB0se CITY OF IOWA CITY Johnson County, Imva General Obligation Bonds, Series 2021 Dated Date of Delivery Book -Entry Due Serially June 1, 2022-2031 The $11.325,000* General Obligation Bonds, Series 2021 (the "Bonds") arc being issued by the City of Iowa City, Johnson County, Iowa (the "City"). Interest is payable semiannually on lune 1 and December I of each year, mmnhencing December I, 2021. Interest is calculated based on a 360 -day year of twelve 30 -day months- The Bonds will be issued using a book -entry system_ The Depository Trust Company ("DTC e. New York, New York, will act as securities depository for the Bonds. The ownership ofonefrIly registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers The Bonds will mature on June I in the following yearn and amounts. AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS Principal Due Interest Price or CUSIP Principal Due Interest Price or CUSIP Amount` June t Rate Yield Numbedll Amount` June 1 Rate Yield NumbeRi) $1,135.000.. ... ... 2022 is its $1,135.000......__. 2027 is its 1,135,000.._-... 2023 % % 1,135,000......_-. 2028 1,135,000.._-... 2024 % % 1,135,000......_-. 2029 1, 135D00......... 2025 as % 1,135,000........... 2030 1,135,000......... 2026 sh as 1,110,000........... 2031 sh as Aar e, sera. a. , ,srodeae-! n0aopo ohofh,dds 1,, /ao.Io."(po4a,,, h"1 hev... /ea.6om. OPTIONAL REDEMPTION Bonds due June 1, 2022 -2027, inclusive, arc not subject to optional redemption. Bonds due June h 2028 - 2031, inclusive, are callable in whole or in pan on any date on or after June h 2027, at a price of par and accrued interest. If Tess than all the Bonds are called, they shall be redeemed in such principal amounts and Crum ,such maWnties as determined by the City and within any maturity by lot See "OPTIONAL REDEMPTION' terser. PURPOSE, LEGALITY AND SECURITY The proceeds of the Bonds are expected to be used to: (i) finance the cost of various essential and goa l corporate purpose capital improvements, and (it) pay the costs of issuing the Bonds. See "THE PROJECT” herein. In the opinion of Bond Counsel, Ahlers & Cooney, P.C., Des Moines, Iowa, the Bonds will constitute valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable property within the corporate limits of the City without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium. reorganization and other similar laws relating to the enforcement of creditors' rights generally and except that enforcement by equitable and similar remedies, such as mandamus, is subject to the exercise of judicial discretion. This Official Statement is dated April _. 2021. and has been prepared under the authority of City. An electronic copy of this Official Seemed is available from the Is Is Is s sol nanooalL oro web site under "Official Statement Sales Calendar'. Additional copies may be obtained 1i Dennis Bockenstedl, Finance Director, City of Iowa City, 410 E. Washington Street, Iowa Ctry, Iowa, 52240, or from the Registered Municipal Advisors to the City. ffSpeer Financial, Ire. Will Sal%o",I .Il lmmrn-(ve.ahI Uhl- /T....I n �... �a, a., i. * rn ,c h.,, it ...el vvn m �„ i. 5. y. m. .v ",'lo.tl e A[CSII nv , 111 ve. , a n< BfsrO "t, 1 , is ,1 s mvn. For purposes of compliance with Rule t5c2-12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the City from time to tune (collectively, the "Official Statement"), may be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date hereof mu the date of any such supplement or correction) by the City. The Official Statement, when further supplemented by an addendum m addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information i union cal by law or deemed appropriate by the City, shall constitute a "Final Official Statement' of the City with respect to the Bonds, as that tett is defined in Rule I5c2-12. Any such addendum or addenda shall, on and after the date thereof, be fully incorporated herein and made a part Ina wf by reference. Altcmativcly, such final terms of the Bonds and other information may be included in a separate document entitled "Final Official Statement" rather than through supplementing the Official Statement by an addendum or addenda. No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CI IANGE, AND NEITHER TI IF DELIVERY OF TI HE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF. References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirely by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. This Official Statement docs not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in anyjurisdiction where such offer or solicitation of such offer would be unlawful. TABLE OF CONTENTS BOND ISSUE SUMMARY.................................................................................... SECURITY AND SOURCE OF PAYMENT........................................................ BONDHOLDERS' RISKS. ....... ._....... .......... ....... ._....... .......... ....... ._....... ..... Potential Impact DI The Coronavirus.................................................................. SecondaryMarket............................................................................................... Ratings Loss ........... _........ .................. _........ .................. _........ .................. .. Forward -Looking Statements ....... _........ ....... _........ _........ ....... _........ _........ Tax Matters and Loss of Tax Exemption ..... ._....... ._....... ....... ._....... ._....... .. DTC -Bene) ficial Owners ...... ........ _......... _......... ........ _......... _......... ........ _......... Pension and OPEB Benefits................................................................................ Continuing Disclosure........................................................................................ Cybeisecurity...................................................................................................... Suitability of Investment ... ._....... ._.... ._....... ._....... ._.... ._....... ._....... ._.... .. Bankruptcyand Insolvency................................................................................. RetailSales... ............................. ............................. ............................. ........................... THEPROJECT...................................................................................................................... DEFAULT RECORD............................................................................................................ SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT DEBT INFORMATION........................................................................................................ DEBTLIMIT.. .......... ....... __ ....... .......... ....... __ ....... .......... ....... __ ....... .......... ....... DIRECT DEBT..... ....... _ .... __ ....... __ ....... _ .... __ ....... __ ....... _ .... __ ....... __ ....... _ .... GENERAL OBLIGATION DEBT(l)(2)............................. ............................. ............. . STATEMENT OF BONDED INDEBTEDNESS(I)Qj_......_._......_......_._......_._......_. OTHER OBLIGATIONS ....... _ ................. .......... _......... ........ .......... _......... ........ ........... PROPERTY .ASSESSMENT AND TAX INFORMATION .... ._....... ._....... ....... ._....... ... PropertyTax Assessment ................................................................................................... BUILDING PERMITS...................................................................................................... PropertvTax Collection..................................................................................................... LevyLimits... .......... ....... .......... .......... ....... .......... .......... ....... .......... .......... ....... ........ Tax Levv Procedures ... ._....... ._....... ._.... ._....... ._....... ._.... ._ ....... ._....... ._.... ._........ Utility Property Tax Replacement..................................................................................... Tax Increment Financing. ............................. ............................. ............................. ........ FINANCIAL INFORMATION.............................................................................. Financial Reports .......................... No Consent m Updated Information Requested of the Auditor .......................... Summary Financial Information......................................................................... REGISTRATION, TRANSFER AND EXCHANGE ............................................. (i) Page 2 3 3 3 4 4 4 5 5 6 6 7 7 7 S 8 S S 8 ....9 ....9 _.9 .....9 ... 10 ... 10 .................. 13 ......... I .... I... 13 .................. 13 ........ I ....... - 13 .................. 14 ................- 14 .................. 14 ................- 15 I.., ... .._....... 16 _................ 16 .............. 16 .................. 16 .................. 17 .................. 17 .................. 19 .._.... ._._... 20 ........................ 22 ........................ 26 TAXMATTERS.................................................................................................. TaxExemption................................................................................................. NOT Qualified Tax Exemption Obligations ... ....... .......... .......... ....... .......... Discount and Premium Bonds.._ ....... ._.... ._....... ._ ....... ._.... ._....... ._....... .. OthcrTax Advicc............................................................................................. Audits.......... ............................ _............................ _............................ ............................. Reporting and Withholdingg.............................................................................. TaxLegislation................................................................................................ TheOpinion..................................................................................................... CONTINUING DISCLOSURE .......................... OPTIONAL REDEMPTION ............................................... LITIGATION...... ....... __ ....... __ ....... ....... __ ....... __ ....... LEGAL MATTERS..........................._............................. OFFICIAL STATEMENT AUTHORIZATION ................. INVESTMENT RATING. ....... .......... .......... ....... .......... .. UNDERWRITING.............................................................. MUNICIPAL ADVISOR......... ........... ........ ........... ........... ... MISCELLANEOUS._ ........................... _........................... ........................ 27 ........................ 27 ........................ 28 ................................................................. 28 ................................................................. 28 ................................................................. 28 ....... _. _...... _. _... _. _...... ....... _...... _. _... _. _.... 29 .............................................................. 29 APPENDIX A -FISCAL YEAR 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT APPENDIX B -DESCRIBING BOOK -ENTRY -ONLY ISSUANCE APPENDIX C -DRAFT FORM OF BOND COUNSEL OPINION APPENDIX D -DRAFT FORM OF CONTINUING DISCLOSURE CERTIFICATE OFFICIAL BID FORM OFFICIAL TERMS OF OFFERING Exhibit A — Example Issue Price Certificate Cii1i a(lonn Cit Johaww Coeenm loirze 511,325,000' Uvneml OWigmlon m.ml,. Seg lr. 2021 BOND ISSUE SUMMARY This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Terns of Offering and the Official Bid Form, which are provided for the convenience of potential investors and should be reviewed in their entirety by potential investors. Issuer: City of Iowa City, Johnson County, Iowa. Issue: $11,325,000* General Obligation Bonds, Series 2021. Dated Date: Date of delivery (expected to be on or about June I, 2021). Interest Due: Each .lune I and December I, commencing December I, 2021. Principal Due: Serially each June 1, commencing June 1, 2022 through 2031, as detailed on the cover page of this Official Statement. Optional Redemption: Bonds maturing on or after June I, 2028, are callable at the option of the City on any date on or after lune 1,2027,Or a price of par plus accrued interest. See "OR FIONAL REDEMPTION" heroin. Authorization: The Bonds are being issued pursuant to authority established in Code of Iowa, 2019 as amended, Chapter 384 (the "Act"), and all Taws amendatory thereof and supplementary thereto, and in conformity with a resolution (the "Resolution" or the 'Bond Resolution") of the City duly passed and approved. Security: The Bonds are valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable real property therein without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium, reorganization and other similar Taws relating to the enforcement of creditors' rights generally and except that enforcement by equitable and similar remedies, such as mandamus, is subject to the exercise of judicial discretion. Investment Rating: An investment rating for the Bonds has been requested from Moody's Investors Service, New York, New York. See "INVESTMENT RATING" herein. Purpose: The proceeds of the Bonds will be used to: (i) bounce die cost of various essential and general corporate purpose capital improvements, and (ii) pay the costs of issuing the Bonds. See "THE PROJECT" herein. Tax Matters: Alders & Cooney, P.C., Des Moines, Iowa, will provide an opinion as to the tax exemption of the Bonds as discussed under "TAX MATTERS" in this Official Statement. Interest on the Bonds is not exempt from present State of Iowa income taxes. See APPENDIX C for a draft form of legal opinion for the Bonds. Bond Registrar/Paying Agent: U.S. Bank, N.A., St. Paul, Minnesota (the "Registrar"). Delivery: The Bonds are expected to be delivered on or about June 1, 2021. Book-EntryForm: ThuBor i116crcgisuacd in the nameofCcde& Co. as nominee for The Depository Trust Company ("DTC"). New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein. Denomination: $5,000 or integral multiples thereof. Municipal Advisor: Speer Financial, Inc., Waterloo, Iowa and Chicago, Illinois. S,ehjen to Mange. Cii1i a(lonn Cit Johaww Coeenn, lmrze SI 1,325,000' GenerzJ 0hii saiew rtnnAs, Soo(, 20'_1 CITY OF IOWA CITY JOHNSON COUNTY, IOWA Bruce Teague Mayor Council Members Laura Bergus Susan Mims Mazahir Salih Pauline Taylor John Thomas Janice Weiner Officials Geoff Train Kellie It City Manager Ci[v Clerk Dennis Bockenstedt Sue Dulek, Esq. Finance Director City Attorney SECURITY AND SOURCE OF PAYMENT Pursuant to the Resolution and the Act, the Bonds and the interest thereon are general obligations of the City, and all taxable real property within the corporate boundaries of the City is subject to the levy of taxes to pay the principal ofand interest on the Bonds without constitutional or statutory limitation as to rate or amount. Section 76.2 of the Act provides that when an Iowa political subdivision issues general obligation bonds, the governing authority of such political subdivision shall, by resolution adopted before issuing the bonds, 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. A certified copy of this resolution shall be filed with the County Auditor in which the City is located, giving rise to a duty of the County Auditor to annually enter this levy for collection From Ore taxable property within the boundaries of the City, until funds are realized to pay the bonds in full. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Bonds as the same become due- the Resolution provides for the levy of a tax sufficient for that purpose on all the taxable property in the City in each of the years while the Bonds are outstanding. The City shall file a certified copy of the Resolution with the County Auditor, pursuant to which the County Auditor is instructed to enter for collection and ass'es's the tax authorized. When annually cntcring such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the City and when collected, the proceeds of the taxes shall be deposited into the Debt Service Fund ofthe City and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Bonds and for no other purpose whatsoever. Cii1i a(lonn Cit Johaww Coeenm foirze SI 1,325,000' GenerzJ 0hii aiiew rtnnAs, Soo(, 20'_1 Nothing in the Resolution authorizing the Bonds prohibits or limits the ability of the City to use legally available moneys other than the proceeds of the general ad valorem property taxes levied as described in the preceding paragraph to pay all m any portion of the principal of of interest on the Bonds. ICand to the extent Such other legally available moneys are used to pay the principal of or interest on the Bonds. the City may, but shall not be required to, (a) reduce the amount of taxes levied for such purpose, as described in the preceding paragraph; or (b) use proceeds of taxes levied, as described in the preceding paragraph, to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Bonds. BONDHOLDERS' RISKS An investment in the Bonds involves an element of risk. In order to identify risk factors and make an informed investment decision, potential investors should be thoroughly familiar with this entire Official Statement (including the appendices hereto) in order to make ajudgement as to whether the Bonds are an appropriate investment. Potential Impact of The Coronavirus In recent months, a main of coronavirus commonly known as COVID-19 has spread globally, negatively affecting global, slate, and local economics and possibly sparking a recession. Federal, Slate, and local officials are taking steps to curb the spread of the vines, including providing both discretionary and mandatory guidelines and orders regarding public gatherings, and imposing mandatory closings of some businesses. The State of Iowa may suffer material adverse consequences from the continued spread of COVID-19, which could affect the amount of State revenues appropriated to municipalities, including the City. The spread of the virus could reduce sales tax and other revenue collections, property valuations and other revenue sources dependent on local business activity, which is likely to he slower. The Citry did not experience material reductions in revenue of material increases i n expenses in fiscal year 2020 due to COVID-19. Lower hotel/motel tax collections, reduced parks and recreation, senior center and other program fees, reduced fine and permit revenues and higher unpaid propertytaxes have negatively impacted the City's general fund. Other impacted bunds include Road Use Tax, Packing, Transit and Water, However. the City expects that any material COVID- 19-related financial impacts to these funds are expected to be covered by federal funding or mitigated by expenditure cuts. It is too soon, however, to fully predict what future COVID-19-related financial impacts the City may experience and whether any such financial impacts will be material. The City cannot predict whether continued spread of the disease will materially impact its financial condition, including the collection of Tax revenues in fiscal year 2021 or beyond. The spread of the virus could negatively affect the City's financial condition, including, among others, lower property values, a delay in property tax collections, and other unpredicted unforeseen consequences, which may affect the City's ability to pay principal of and interest on the Bonds. The Bonds are general obligations of the Citv. See `SECURITY AND SOURCE OF PAYMENT FOR THE BONDS" herein. This information is based on current information available to the City that may be incomplete and unknown. This information was derived using certain assumptions and methodologies and includes unaudited financial information and projections. Some of this information is forward-looking and subject to change. Secondary Market There can be no guarantee that there will be a secondary market for the Bonds or, if secondary market exis'ts, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history of economic prospects connected with a particular issue, secondary marketing practices in connection with a particular bond or note issue are suspended or terminated. Additionally, prices ofbond or note issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase In of the Bonds. Ci0a(ronn Cit Johaw,n Coeenm foirze 511,325,000' Garanf OLir aii..n m.mi,. Seg o(, 20'_1 EACH PROSPECTIVE PURCHASER IS RESPONSIBLE FOR ASSESSING THE MERITS AND RISKS OF AN INVESTMENT IN THE BONDS AND MUST BE ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT. THE SECONDARY MARKET FOR TI IE BONDS, IF ANY, COULD BE LIMITED. Ratings Loss Moody's Investors Service, Inc. ("Moody's") has assigned a rating of " " to the Bonds. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that the rating will continue for any given period of time. or that such rating will not be rcviscd, suspended or withdrawn, if, in the judgment of Moody's, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market In of the Bonds. Various factors, including additional regulation of rating agencies could materially alter the methodology, rating levels, and types of ratings available, for example, and these changes, if ever, could materially affect the market value of the Bonds. Forward -Looking Statements This Official Statement contains statements relating to future results that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When used in this Official Statement, the words "estimate," "forecast" "intend," "expect' and similar expressions identify forward-looking statements. Any forward-looking statement is subject to uncertainty. Accordingly, such statements are subject to risks that could cause actual results to differ, possibly materially, Boat those contemplated in such forward-looking statements. Inevitably, sonic assumptions used to develop forward-looking statements will not be realized or unanticipated events and circumstances may occur. Therefore, investors should be aware that there are likely to be differences between forward-looking statements and the actual results. These differences could be material and could impact the availability of funds of the City to pay debt service when due on the Bonds. Tax Matters and Loss of Tax Exemption As discussed under the heading --TAX MATTERS" herein, the interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Bonds, as a result of acts or omissions of the City in violation of its covenants in the Resolution. Should such an event of taxability occur, the Bonds would not be subject to a special prepayment and would remain outstanding until maturity or until prepaid under the prepayment provisions contained in the Bonds, and there is no provision for an adjustment of the interest rate on the Bonds. It is possible that legislation will be proposed or introduced that could result in changes in the way that tax exemption is calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should consult with their own tax advisors regarding any pending or proposed federal income tax legislation. The likelihood ofany pending or future legislation being enacted or whether the currently proposed terms of any pending legislation will be altered or removed during the legislative process cannot be reliably predicted. It is also possible that actions of the City after the closing of the Bonds will alter the tax status of the Bonds, and, in the extreme, remove the tax exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory prepayment, and the interest rate on the Bonds does not increase or otherwise reset. A determination of taxability on the Bonds, after closing of the Bonds, could materially adversely affect the value and marketability of the Bonds. Cii1i 0 1Unn Cit Johaww Coeenm folio SI 1,325,000' GenerzJ ODligyuiew rtnnAs, v, ie. 20'_1 DTC -Beneficial Owners Benclicial Owners of the Bonds may experience sonic delay in the receipt of distributions of principal of and interest on the Bonds since such distributions will be forwarded by the Paying Agent to DTC and DTC will credit such distributions to the accounts of the Participants which will thereafter credit them to the accounts of the Beneficial Owner either directly or indirectly through indirect Participants. Neither the City nor the Paying Agent will have any responsibility or obligation to assure that any such notice or payment is forwarded by DTC to any Participants or by any Participant to any Beneficial Owner. In addition, since hansactions in the Bonds can be cffcetcd only through DTC Participants, indirect participants and certain banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the DTC system, or otherwise to take actions in respect of such Bonds, may be limited due to lack of a physical certificate. Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the Participants. See APPENDIX B — Describing Book -Entry Only Issuance. Pension and OPEB Benefits 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). In fiscal year 2020, pursuant to the IPERS' required rate, the City's Regular employees (members) contributed 6.29% of covered payroll and the City contributed 9.44% of covered payroll, for a total rate of 15.73%. The City's contributions to IPERS for the year ended June 30, 2020 were $2,958,649. The City's share of the contributions, payable from the applicable funds of the City, is provided by a statutorily authorized annual levy diffuses without limit or restriction as to rate or amount. The City has always made its full required contributions to IPERS. At lune 30, 2020, the City reported a liability of $23,474,689 for its proportionate share of the IPERS net pension liability. The net pension liability was measured as of June 30, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as ofthat date. The discount rate used to measure the total pension liability was 7G. 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. While the City's contributions to IPF,RS are controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the City. See "APPENDIX A —AUDITED FINANCIAL STATEMENTS OF THE ISSUER" for additional information on pension and liabilities ofthe City. In fiscal year 2020, pursuant to the MFPRSI's required rate, the City's employees (members) contributed 9.40'/o of earnable compensation and the City contributed 24.41%of covered payroll, for a total rate of 33.81%. The City's contributions to MFPRSI for the year ended June 30, 2020 were 52,808,200. 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 at amount. The City has always made its fill requacd contributions to MFPRSI. At June 30, 2020, the City reported a liability of 524,170,107 for its proportionate share of the MFPRSI net pension liability. The net pension liability was measured as of lune 30, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as ofthat date. The discount rate used to measure the total pension liability was 7.5%. 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 MFPRSI participating employers. While the City's contributions to MFPRSI arc controlled by state law, there can be no assurance the City will not be required by changes in State law to increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the City. See "APPENDIX A— AUDITED FINANCIAL STATEMENTS OF THE ISSUER" hereto for additional information on pension and liabilities of the City CIOa(lonn Cin Johaww Conn, lora 5/ 1,325,000' GenerzJ 0hiigruirw rtanin, Soo(, 20'_I The City operates a single -employer self-funded medical and dental plan for all employees, which is offered to current and retired employees and their dependents. Group insurance benefits arc 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. $8,877,831 Changes for the year Service Cost __ _.... __ 633,456 Interest __ 322,689 Difference Between Expected and Actual Experience _____ (482895) Changes in Assumptions - __ ____ (82,608) Benefit Payments ____ - __ ____ (641253) Net Changes... ........ ........... ............ (250.4111 Total OPEB Liability End of Year.. ........... ............ $8,627,420 See APPENDIX A — Notes (7) and (8) herein for further discussion of the City's employee retirement benefit obligations. Bond Counsel. Disclosure Counsel, the Municipal Advisor, and the City undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from (PERS or MFPRSI discussed above or included on the ]PERS or MFPRSI websites, including, but not limited to, updates of such information on the State Auditor's website or links to other Internet sites accessed through the IPERS of MFPRSI websites. Continuing Disclosure A failure by the City to comply with continuing disclosure obligations (sce "CONTINUING DISCLOSURE" herein) will not constitute an event of default on the Bonds. Any such failure must be disclosed in accordance with Rule I5c2-12 (the "Rule') adopted by the Securities and Exchange Commission (the "Commission") under the Securities Exchange Act of 1934, as amended (the "Exchange Act'), and may adversely affect the transferability and liquidity of the Bonds and their market price. The City will covenant in a Continuing Disclosure Certificate for the benefit of the Owners and Beneficial Owners of the Bonds to provide annually certain financial information and operating data relating to the City (thC "Annual Report"), and to provide notices of the occurrence of certain enumerated events. The Annual Report is to be filed by the City no later than two hundred left (210) days after the close of each fiscal year, commencing with the fiscal year ending June 30, 2021, with the Municipal Securities Rulemaking Board, at its internet repository named "Electronic Municipal Market Access' ("EMMA"). The notices of events, if any, are also to be filed with EMMA. See "APPENDIX D — FORM OF CONTINUING DISCLOSURE CERTIFICATE." The specific nature of the information to be contained in the Annual Report or the notices of events, and the manner in which such materials are to be filed, are summarized in "APPENDIX D — FORM OF CONTINUING DISCLOSURE CERTIFICATE." These covenants have been made in order to assist the Underwriter in complying with SEC Rule I5c2-12(b)(5) (the "Rule'). Cybersecurity The City, like many other public and private entities, relics on a large and complex technology environment to conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to, hacking, viruses, moderate and other attacks on computer or other sensitive digital systems and networks. Them can be no assurances that any security and operational control measures implemented by the City will be completely successful to guard against and prevent cyber threats and attacks. Failure to properly maintain functionality, control, security, and integrity of the City's information systems could impact business operations ander digital networks and systems and the costs of remedying any such damage could be significant. Along with significant liability claims or regulatory penalties, any security breach could have a material adverse impact on the City's operations and financial condition. The City has a S 1,000,000 Cyber -Liability Policy. The City cannot predict whether this policy will be sufficient in the event of a cyberattack. However, the Bonds are secured by an unlimited ad valorem property tax as described herein. Ci0a(ronn Cit Johsaww Coeenm lora 51 1,325,000' Ganrmf OLir mlon enol,. v, o(, 20'_1 Suitability of Investment The interest lute borne by the Bonds is intended to compensate the investor for assuming the risk of investing in the Bonds. Each prospective investor should carefully examine this Official Statement and its own financial condition to make a judgment as to its ability to bear the economic risk Of Such an investment, and whether or not the Bonds are an appropriate investment for such investor. Bankruptcy and Insolvency The rights and remedies provided in the Resolution may be limited by and are subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditors rights, to the exercise of judicial discretion in appropriate cases and to limitations in legal remedies against exercise of judicial discretion in appropriate cases and to limitations on legal remedies against municipal corporations in the State of Iowa. The various opinions of counsel to be delivered with respect to the Bonds and the Resolution, including the opinion of Bond Counsel, will be similarly qualified. If the City were to file a petition under chapter nine of the federal bankruptcy code, the owners of the Bonds could be prohibited from taking any steps to enforce their rights under the Resolution. In the event the City fails to comply with its covenants under the Resolution or fails to make payments on the Bonds, there can be no assurance of the availability of remedies adequate to protect the interests of the holders of the Bonds. Under sections 76.16 and 76.16A of the Code of Iowa, as amended, a city, county, or other political subdivision may become a debtor under chapter nine of [he federal bankruptcy code, if it is rendered insolvent, as defined in I I U.S.C. 4101(32)(c), as a result of a debt involuntarily incurred. As used therein, "debt' means an obligation to pay money, other than pursuant to a valid and binding collective bargaining agreement or previously authorized bond issue, as to which the governing body of the city, county, or other political subdivision has made a specific Finding set forth in a duly adopted resolution of each of the following: (1) that all or a portion of such obligation will not be paid from available insurance proceeds and must be paid from an increase in general tax levy: (2) that such increase in the general tax levy will result in a severe, adverse impact on the ability of the city, county, or political subdivision to exercise the powers granted to it under applicable law, including without limitation providing neces's'ary services and promoting economic development; (3) that as a result of such obligation, the city, county, or other political subdivision is unable to pay its debts as they become due; and (4) that the debt is not an obligation to pay money to a city, county, entity organized pursuant to chapter 28E of the Code of Iowa, or other political Subdivision. Legislation From time to time, there are proposals pending in Congress and in the Iowa Legislature that could, if enacted, alter or amend one or more of the matters described herein in certain respects or would adversely affect the market value of the Bonds, or otherwise prevent holders of the Bonds from realizing the fill benefit of the tax exemption of interest on the Bonds. Further such proposals may impact the marketability or market value of the Bonds simply by being proposed. 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 the Bonds. In addition regulatory actions are from time to time announced or proposed, and litigation threatened or commenced, which if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax status ofthe Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation ojudicial action will be resolved, or whether the Bonds would be impacted thereby. During the 2019 legislative session, the Iowa General Assembly passed Senate File 634 which was later signed into law by the Governor. This bill modifies the process for hearing and approval of the total maximum property tax dollars under certain levies in the City budget, including levies for the General Fund, the Emergency Fund, Trust and Agency Funds for pensions, insurance, transit, civic centers, certain bridges, sanitary disposal, and emergency management. The bill also includes a provision that requires the affirmative vote 0`2 3 of the City Council when the maximum property lax dollars under these levies exceed an amount determined under a prescribed formula. The bill does not change he process for hearing and approval of the Debt Service Lcvy pledged for repayment of the Bonds. R is too early to evaluate the effect this legislation will have on the overall financial position of the City or its ability to fund essential services. Citi a(ronn Cit Johaww Coeenm lmrze 5i1,325,000' Ovnrmf ODiisaiew m.mi,. C,o(, 20'_1 Loss of Tax Base Economic and other factors beyond the City's control, such as economic recession, collation of property values, or financial difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable property caused by, among other eventualities, earthquake, flood, fire or other natural disaster, could cause a reduction in the assessed value within the corporate boundaries of the City. In addition, the State of Iowa has been susceptible to tornados, flooding and other extreme weather wherein winds and flooding have from time to time caused significant damage, which if such events were to occur, may have an adverse impact on the City's financial position. The City believes it has employed adequate risk -mitigation strategies to limit future damage due to climate change or natural disaster, but it is impossible to predict the impact, cost or necessity of f'utum recovery or mitigation efforts. Tax Levy Procedures The Bonds are general obligations of the City, payable from and secured by a continuing ad valorem tax levied against all of the taxable property valuation within the City. See "PROPERTY ASSESSMENT AND TAX INFORMATION" herein for more details. As part of the budgetary process each fiscal year, the City will have an obligation to request a debt service levy to be applied against all of the taxable property within the City. A failure on the part of the City to make a timely levy request or a levy request by the City that is inaccurate or is insufficient to make full payments of the debt service of the Bonds for a particular fiscal year may cause Bondholders to experience delay in the receipt of distributions of principal of and/or interest on the Bonds. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the Resolution for the Bonds) may have to be enforced from year to year. Federal Funds Orders and State Funds Legislation Various federal executive orders, and Iowa Code Chapter 825 (collectively "ICE Enforcement Initiatives"), impose requirements intended to ensure compliance with the federal immigration detainment processes. The ICE Enforcement Initiatives impose various penalties for nona:omplianec, including the loss of state and/or federal hording under certain circumstances. The loss of state and/or federal funds in any significant amount could negatively impact the City's overall financial position and may affect its rating. Other Factors An investment in the Bonds involves an element of risk. The foregoing is intended only as it summary of certain risk factors attendant to an investment in the Bonds. In order for potential investors to identify risk factors and make an informed investment decision, potential investors should become thoroughly familiar with this entire Official Statement and the Appendices hemto. THE CITY The City is located in Fast Central Iowa and was incorporated in 1853 under the laws of the State of Iowa (the "Slate") and operates under the Council/Manager form of government. The 2010 Census ieported population at 67,862, which is 9% increase over the 2000 Census population of 62,220. The City is the largest City in Johnson County (the "County") and serves as the County scat. Cii1i a(lonn Cit Johaww Coeenm foirze SI 1,325,000' GenerzJ 0hii aiiew rtnnAs, Sudor 20'_1 Cit) Organization and Services The City is govcined by a seven member Council and each member- serves a fom-year tern. Elections are hold every two years, allowing for continuation in office of at least three members in each biennial election. The Council members are elected at large, but three members are nominated from specific districts and the remaining four members are nominated at Targe. The Mayor is elected by the Council from its own members for a two-year term. The City Manager, City Attorney and City Clerk are appointed by the City Council. The City Manager is the chief administrative officer for the City. Currently the City employs approximately 555 full-time, 59 permanent part-time and 132 temporary employees, including a police force of 78 sworn personnel and a fire department of 64 fire fighters. The City considers its employee relations to be good. The City currently maintains labor agreements with the American Federation of State, County and Municipal Employees ("AFSCME") which contract expires June 30, 2026; with Police ("PLRO") which contract expires June 30, 2025; and Fire fighters ("IAFF') which contract expires June 30, 2024. The City provides a broad range of services to its citizens including general government, public safety, streets, parks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, storm water collection, sanitation collection and disposal (including landfill operations), and a housing authority. Community Life The City was the fust North American City to be awarded the City of Literature in North America by UNESCO in 2008, which has a goal of fostering cultural diversity. The City hosts a variety of cultural events, such as the Iowa Writers' Workshop, whose graduates include John Irving, Flannery O'Connor, TC, Boyle; the International Writing Program; the Non -Fiction Writing Program; the Iowa Playwrights' Workshop; and the Iowa Summer Writing Festival. A variety of events sponsored by the City include the Summer of tire Arts program, a festival of the arts, a nationally renownedjazz festival, open-air summer movies and flee concerts in the pedestrian mall. The City Book Festival, the Iowa Biennial Exhibition, and The Landlocked Film Festival are events hosted by the City. The Handier Auditorium hosts nationally touring theater, dance and musical shows, and has commissioned more than 100 works of music, theater and dance during the last 20 years. Education Public education to the City is provided by the Iowa City Community School District (the `District"), with certified enrollment of 14,284 for Fiscal Year 2020-21. There are approximately 2,289 full and part-time employees of the District. The District owns and operates 19 pre-school sites, 21 elementary schools- three junior high schools, three comprehensive high schools, one alternative high school and a Transition Services Center (a program for special education students ages 18-21). Education is also provided through the Clear Creek— Amana Community School District, with certified enrollment of 2,624 for Fiscal Year 2020-21. Four your college programs and vocational training one available throughout the arca including the University of Iowa and Kirkwood Community College. Transportation The City is approximately 115 miles east of the City of Des Moines, 20 miles southeast of the City of Cedar Rapids and 55 miles northwest of the City of Davenport. The Eastern Iowa Airport is located 20 miles from downtown Iowa City and is served by a number of national and regional air carriers. A general aviation airport, Iowa City Municipal Airport is located on the south side of the City. The Iowa Interstate Railway, and Cedar Rapids and Iowa City Railway provide the City's rail service. Bus transportation is provided by Iowa City Transit, Coralville Transit, and the University of Iowa. There is also a system of paved bicycle paths in the City along the Iowa River and some main roads in the City have paved bicycle shoulders. C10a(/onn Cih'. Johaww <'onnm biro SI 1,325,000' GenerzJ Ohligruirw Ifnnrlx, Suitt 20'_1 SOCIOECONOMIC INFORMATION The following demographic information is for the City. Additional comparisons are made with Johnson County (the "County') and the State of Iowa (the "State"). Population The followina table rCT0CtS population Wends for the City, the County and the State Population Comparison(]) Note_ (1) Source'. U.S. Bureau of the Census Employment Following are lists of large employers located in the City. Major City Employers([) The Percent The Percent The Percent Year city Change County Change State Change 1970 ................ 46,850 No ]2,12] No 2,824.3]6 n/a 1980..........-_._ 50,508 ].81% 81,]1] 13.30% 2,913,808 3 17% 1990..........-_._ 59,735 1827% 96,119 17.62% 2,776,755 (470%) 2000 .................... 62,220 JAB% 111,006 1549% 2,926,324 539% 2010 ..................... 6].862 9.07% 130.882 17.91% 3.046.355 4.10% Note_ (1) Source'. U.S. Bureau of the Census Employment Following are lists of large employers located in the City. Major City Employers([) Notes (1) Source'. the City The following tables show employment by industry and by occupation for the City, the County and the State as reported by the U.S. Census Bureau 2015 - 2019 American Community Survey 5 -year estimated values. Employment By Industry(1) The Approximate Name ProductiServe Employment University of Iowa ___. __. _. Education/Health Services 29,,860 Iowa City Community School Education 2289 Veterans Administration Medical Center Health Services .... ........ ......... .._..... 2,119 HyVMer. ...... ......... ......_Grocery ...._. .._..... _....... 1 348 Mercy Hospital __.. ._.... . __ __. . . . . .__ Health Services . ._...... . . . .__ 1,048 Gamble ..__.... ._..._. Proctor ....__. Health Beauty Products .__.... ....__. ..... 976 ACL Inc __.. __. ACTInc. Education __..._Governor Programs __.... __. __... 885 City ofIowaCity ---- ---- .......Government_ __._ ___. ___. 731 NCS Pearson Educational Testing Services _. __ ___. ____ 719 Johnson County ____ ____ __..Government..__ __._ ___. ___. 612 Notes (1) Source'. the City The following tables show employment by industry and by occupation for the City, the County and the State as reported by the U.S. Census Bureau 2015 - 2019 American Community Survey 5 -year estimated values. Employment By Industry(1) Note. (1) Source'. U.S. Bureau of the Census, American Community Survey 5 -Year Estimates from 2015-2019 10 The City The County The State Classification Number Percent Number Percent Number Percent Agriculture, forestry, Haing and hunting, and mining .................... 174 04% 955 1.1% 60131 37% Construction ____ ___. ________ 1,434 3.3% 3,689 44% 103.928 64% Manufacturing.. - ......... _......._.... 2,766 65% 7,185 8.5% 240,510 14.9% Wholesale trade - ......... _......._.... 414 10% 1,308 1.6% 45,805 23 Retail trade __.____.__ 4,692 11.0% 9,084 10.8% 186,537 11.6% Transportation and warehousing and utilities . .... .... .... ..... . 1,020 24% 2,421 2.9% 78,935 4.9% information ... .._...... ........_....._.... 552 1.3% 945 1.1% 25,498 1.6% Finance and insurance, and real estate and rental and leasing.... 1,617 3.8% 4,246 50% 123,750 ]]% Professional, scientific, and management, and administrative and waste management services ________ 2,926 68% 6,115 7.3% 118,156 7.3% Educational services, and health care and social assistance__ ____ 19,371 45.3% 35220 41.9% 393,873 244% Arts, entertainment, and recreation, and accommodation and food services .... _.. __.___.___ 5,715 13.4% 8,680 103% 119,270 Tur Otherservices, except pub[ tlminislration _. _.__.____._ 1,390 32% 2,569 31% 68,012 4.2% ac administrationtion ... ....... ................... Public 692 16% 1]12 2.0% 43.497 3.1% Total... _...... ... ..... ........ .... 42.763 100.00% 84.129 100.0% 1.613.902 100.0% Note. (1) Source'. U.S. Bureau of the Census, American Community Survey 5 -Year Estimates from 2015-2019 10 C10 0 k... a Cih'. Johaww <'ounc, an a 5/ 1,325,000' GenerzJ OLligntinn rtnnA., A,a, 20'_1 Employment By Occupation(1) Note: (1) Source: J. S. Bureau of the Census, American Community Survey 5 -Year Estimates from 2015 -2019. The following shows the annual average unemployment rates for the City, the County, the State and the United States. Annual Average Unemployment Rates(l)(2) Calendar The The City United The County The State Classification 2011....__..._.._ Number Percent Number Percent Number Percent Management, business, science , and alts occupations ... 20,527 48.0% 2013_ __- 40,030 47,6% 585,013 36.2% Service occupations _. ___. ________ 9,002 21.1% 6.2% 15,425 183% 262,868 16.3% Sales and officeoccupations _______- 7,108 166% 3.6% 14,961 178% 333,318 20.7% Natural resources, construction and maintenance occupations_ ___ 1,815 42% 1.9% 1.9% 4,686 56% 153,908 95% Production transportation and material moving occupation......._..... 4311 10.1% ______. 902] 10.]% 2]8]95]95 17.3% Total... ...... ......... _................. 42,763 100.0% Notes_ 84,129 100.0% 1,613,902 100.0% Note: (1) Source: J. S. Bureau of the Census, American Community Survey 5 -Year Estimates from 2015 -2019. The following shows the annual average unemployment rates for the City, the County, the State and the United States. Annual Average Unemployment Rates(l)(2) Calendar The The The The United Year State City Count State States 2011....__..._.._ Percent 370 4.00 5.5% 8.90 2012_ _____- 4.4" __ 3.5% 37% 5.0% 81% 2013_ __- $50,000 to$99,999. . _____ 33% 34% 47% 74% 2014 ..............._....... 187.081 3.0% 3.1% 42/ 6.2% 2015 ......................_ 3,941 2.60 2]7% 3.8% 53% 2016 ........................ 3,251 2.4% 2.6% 3.6% 4.9% 2017 ........................ 174% 2.5% 2.5% 3.1% 4.4% 2018 ........................ 29.2% 1.9% 1.9% 2.5% 3.9% 2019 ....................... 18.1% 2.0% 2.0% 2.9% 37% 2020.... ______. 5.1% 4.8% 5.3% 8.1% 2021(3)-______-. 23,930 3.6% 3.8% 4.8% 6.8% Notes_ (1) Source: Iowa Workforce Development and U.S- Bureau of Labor Statistics. Total _...... (2) Not seasonally adjusted. 34.589 100.0% 899223 (3) Preliminary rates for the month of January 2021. (4) The increase in unemployment rates may be attributable to the COVIDI9 pandemic. See "BONDHOLDERS RISKS - COVID-19' herein. Housing The U.S. Census Bureau 5 -year estimated values reported that the median value of the City's owner -occupied homes was $215,100. This compares to $222600 for the County and $147,800 for the State. The following table represents the five year average market value of specified owner occupied units for the City, the County and the State at the time of the 2015 - 2019 American Community Survey. Home Values(]) Note. (1) Source: U.S. Bureau of the Census, American Community Survey 5 -year estimates 2015-2019 The City The County The State Value Number Percent Number Percent Number Percent Less than $50,000 ............................... 643 4.4" 2,437 T57 79.312 8.8% $50,000 to$99,999. . 686 47% 1,354 3.9% 187.081 20.8% $100,000 to $149,999 ......................... 1,838 12.6% 3,941 11,4% 191,070 21.2% $150,000 to$199,999......................... 3,251 22.3% 6,364 164% 156,091 174% $200.000 to$299,999........................ 4,853 33.5% 10,097 29.2% 164.192 18.3% $300,000 to$499,999.................... 2,644 18.1% 7,808 226% 92,482 103% $500,000 to $999 999... _________.. 605 4.1% 2.361 58% 23,930 27% $1000,000 or more _____________ 39 0.3% 227 97% 5,065 05% Total _...... _.......... 14.589 100.0% 34.589 100.0% 899223 100.0% Note. (1) Source: U.S. Bureau of the Census, American Community Survey 5 -year estimates 2015-2019 C10'0 k... a Or Johaww<'ounic biro SI 1,325,000' GenerzJ Ohh,,s irw rtnnAx. Soo(, 20'_1 Mortgage Statum]) Note- (1) Source .US. Bureau of the Census, American Community Survey 5year estimates 2015-2019. Income The U.S. Census Bureau 5 -year estimated values reported that the City had a median family income of $84,565. This compares to 595,047 for the County and $77,099 forthe State. The following table represents the distribution of family incomes for the City, the County and the State at the time of the 2015 - 2019 American Community Survey. Family Income(/) The The City The Counts Less than $10,000.... _..... ........_........ The State Mortgage Status Number Percent Number Percent Number Percent Housing units with a mortgage ............. 9.633 66.0% 22,924 66.3% 147% 544.728 60.6 % Housing units without a mortgage........ 495fi 34.0% 11665 33.7% 10.1% 354495 39.4% Total .......... ........ 14,589 100.0% 34,589 100.0% .... ._. 2,555 899,223 100.0% Note- (1) Source .US. Bureau of the Census, American Community Survey 5year estimates 2015-2019. Income The U.S. Census Bureau 5 -year estimated values reported that the City had a median family income of $84,565. This compares to 595,047 for the County and $77,099 forthe State. The following table represents the distribution of family incomes for the City, the County and the State at the time of the 2015 - 2019 American Community Survey. Family Income(/) The County The City Income Number Percent Less than $10,000.... _..... ........_........ 544 4.1% $10.000 to$14,999..__.....__....._....._. 324 2.4% $15,000 to$24,999... ..... .... ..... 1,031 ]]% $25,000 to$34,999.......... ._......... 709 5.3% $35,000 to$49,999......__....._......._.... 1,270 9.5% $50,000 to $74,999....---...--....._-.... 1,971 147% $75,000 to $99,999 1,974 14.8% $100.000 to$149,999..--...--.....--.... 2,840 212% $150,000 to$199.999......................... 1357 10.1% $200,000 or more......_......._....._........ 1365 10.2% Total ............................................ 13,385 100.0% The County Number Percent 1,059 33% 523 16% 1,606 5.0% 1,468 4.5% 2,999 9.3% 4,684 144% 4,999 154% ],)3] 235% 3,431 109% 3889 125% 32,395 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5 -year estimates 2015 to 2019. The U.S. Census Bureau 5 -year estimated values reported that the City had a median household Income of $41l This compares to $62,542 for the County and $60,523 for the State. The fallowing table represents the distribution of household incomes for the City, the County and the State at the time of the 2615 -2019 American Community Survey. The Slate Number Percent 22,636 28% 14,901 The Counts 1.9% 41343 Income 5,1% 54.569 Number 6,8% 93.819 Percent 11]% 160.975 13.7% 20.1 % 139,580 66,420 174% 164,129 1]31 204% 59,624 45% vast, 51 250 6 4% 802,826 5,326 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5 -year estimates 2015 to 2019. The U.S. Census Bureau 5 -year estimated values reported that the City had a median household Income of $41l This compares to $62,542 for the County and $60,523 for the State. The fallowing table represents the distribution of household incomes for the City, the County and the State at the time of the 2615 -2019 American Community Survey. Note: (1) Source: US Bureau of the Census, American Community Survey 5year estimates 2015-2019 12 Household Incoarl The City The Counts The State Income Number Percent Number Percent Number Percent Less than $10,000 _....._......._............ 4,179 13.7% 5,581 94% 66,420 53% $10000 to$14,999...._......._....._......._... 1]31 57% 2,345 45% 52,441 4.1% $15,000 or $24,999 .................................. 3,416 11.2% 5,326 9.0% 115,414 9.1% $25,000 to$34,999 ... ..... ..... .... ._. 2,555 6.4% 4,483 7.6% 119,165 9.4% $35,000 to$49,999._....._.....__....._....._. 3,671 12.0% 6,655 11.2% 168,905 13.4% $50,000 to$]4,999......__...__.....__....._. 4,]3] 15.5% 9,631 16.3% 243,004 192% $75,000 to $99,999 ___________. 3,192 104% ],135 12.1% 181,100 14.3% $100,000 to$149999_- _____- ___- 3,]8] 124% 9,520 161% 194,116 153% $150,000to$199.999............................ 1,665 54% 3,955 67% 66,951 5.3% $200,000 or more......_......._....._........... 1835 5.3% 4.500 ].6% 5]95] 46% Total _.... __... _..... 30,568 100.0% 59.134 1005% 1265,473 1000% Note: (1) Source: US Bureau of the Census, American Community Survey 5year estimates 2015-2019 12 CIOa(Ionn Cit Johaww Conn lmrzr SI 1,325,000' GenerzJ 0hirsi Inn rtnnrl., Soo(, 20'_1 Retail Sales The Department of Rn'enue of the State or Iowa provides retail sales figures based on sales tax reports for years ending June 30. The Department of Revenue figures provide recent data to confirm trends in retail sales activity in the City. The following amounts exclude the City's local Option Tax. THE PROJECT Bond proceeds will be used to: (i) finance the cost of various essential and general corporate purpose capital improvements (the "Project'); and (ii) pay the costs of issuance of the Bonds. More specifically, the Project includes the financing of the costs of IN opening, widening, extending, grading, and drainage of the right-of-way of streets, highways. avenues- alleys and public grounds; the construction, reconstruction, and repairing of any street and strecis'cape improvements, with related utility work, traffic control dcviecs, lighting, s'idcwalks, and the acquisition of real estate for such purposes; the construction, reconstruction, enlargement, improvement, and repair of bridges; the rehabilitation and improvement of parks already owned, including facilities, equipment and improvements commonly found in city parks; equipping the fire department; and the acquisition, construction, reconstruction, extension, improvement, and equipping of works and facilities useful for the collection and disposal of solid waste; improvements to and equipping of the Senior Center facility; the acquisition, Construction and reconstruction of facilities for the public works department, including sand and salt storage bunkers; and the construction, reconstruction, enlargement, improvement, and repair of trails' and recreational areas. DEFAULT RECORD The City has no record of default and has met its debt repayment obligations promptly. SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT The City has not issued tax anticipation warrants or revenue anticipation notes during the last five years to meet its short-term current year cash flow requirements. The City does not expect to issue any additional general obligation debt in calendar year 2021. Retail Taxable Sales(l) Fiscal Year Taxable Annual Percent Ending June 30 Sales Change +(-) 2011... ... ...... .....__...... $741,407,021 n/a 2012 ....................... 767,122,555 347% 2013 ....................... 793,201342 340% 2014 ....................... 811039,164 225% 2015._ .............._......._. 838,853,686 3.43% 2016 ............................. 853,258,347 1,72% 2017 ............................. 874,928,986 2.54% 2018... ... ...... .....__...... 654,538,416 (2.33%) 2019... ... ...... .....__...... 666,389,134 1.39% 2020... ... ...... .....__...... 632,475,900 (3.91%) Growth from 201110 2020. _________________ 1228% Note. (1) source. the Iowa Department of Revenue. THE PROJECT Bond proceeds will be used to: (i) finance the cost of various essential and general corporate purpose capital improvements (the "Project'); and (ii) pay the costs of issuance of the Bonds. More specifically, the Project includes the financing of the costs of IN opening, widening, extending, grading, and drainage of the right-of-way of streets, highways. avenues- alleys and public grounds; the construction, reconstruction, and repairing of any street and strecis'cape improvements, with related utility work, traffic control dcviecs, lighting, s'idcwalks, and the acquisition of real estate for such purposes; the construction, reconstruction, enlargement, improvement, and repair of bridges; the rehabilitation and improvement of parks already owned, including facilities, equipment and improvements commonly found in city parks; equipping the fire department; and the acquisition, construction, reconstruction, extension, improvement, and equipping of works and facilities useful for the collection and disposal of solid waste; improvements to and equipping of the Senior Center facility; the acquisition, Construction and reconstruction of facilities for the public works department, including sand and salt storage bunkers; and the construction, reconstruction, enlargement, improvement, and repair of trails' and recreational areas. DEFAULT RECORD The City has no record of default and has met its debt repayment obligations promptly. SHORT-TERM BORROWING AND ADDITIONAL GENERAL OBLIGATION DEBT The City has not issued tax anticipation warrants or revenue anticipation notes during the last five years to meet its short-term current year cash flow requirements. The City does not expect to issue any additional general obligation debt in calendar year 2021. C't00 10nn Cih'. Johaww <'ounb, biro SI 1,325,000' GenerzJ 0hirsuirw R .... dx. Soo(, 20'_1 DEBT INFORMATION DEBT LIMIT The constitutional general obligation debt limit ofa political subdivision ofthe state of Iowa is equal to five percent (5%) of the actual value of taxable property within its borders. According to and based upon the January 1, 2019 property valuations, for taxes payable in September 2020 and March 2021 the _meneral obligation debt limit of the City for the period which began July I, 2020 and ends June 30, 2021 is: DIRECT DEBT 'Suljeevo, hangs_ 2019 100% Actual Valuation of Property ........................... $6,85],898,321 Constitutional Debt Limit ... __... _.. $ 342,894,916 Outstanding Bonds/Notes Applicable to Debt Limit TIF Revenue Debt ___. ___. $ 12,805000 Total G.O Debt Subject to Debt Limit ......... _..._ 53,935,000' Other Loans ..... ......_. 210,784 Other Legal Indebtedness (TIF Rebates)....._ ....................... 24.485.979 Total Applicable DebL.......... ........... ......... $ 91,43676 Remaining Debt Capacity..... __..... __. $ 251,458 15W Summary of General Obligation and Tax Increment Debtri (Principal Only) General Obligation'. Series 2012A.... .... ._..... .... $ 1, Oneon0 Series 2013A_.. ____. ___. 1,]25,000 Series 2014.... ____ ____ 3000,000 Series 2015... ____ ____ 3,365.000 Series 2016A_.. _....... _..... 4,945,000 Series 2017A_.. __..... _..... 6,100,000 Series 2018A.... _....... ....... 6,420,000 Series 2019.... .... ..... .... 7,505000 Series 2020..... ..... .... 8545000 The Bonds(3).... .. .... 11325000 Total General Obllgation(3)_____________ $53,935,000 Tax Increment Financing Revenue'. Series 2012D... _....._ _..._ $ 0 Series 2016e.... _....._ __..._ 12.605 000 Total Tax Increment ..... ..... .... ..... .... . $12,805000 Noted (1) Source: the City. (2) After the June 1. 2021 principal payments on the outstanding debt. (3) Subject to change. 14 C''0'a(lonn 0A Johaww <'onnm lora 5/ 1,325,000' GenerzJ 0hir iirw rtanAx. Soo(, 20'_I GENERAL OBLIGATION DEBT(/)(2) (Principal Only) Fiscal Year Ending Series Series Series Series Series Series Series Series Series June 30 2012A 2013A 2014 2015 2016A 2017A 2018A 2019 2020 201...__.....__..... _..........__... $1,005,000 $ 855,000 $ 970,000 $ 805,000 $ 950,000 $ 955,000 $ 855,000 $ 925,000 $1,800,000 2023... ... . .... ... ... ... _. 0 870,000 1,000,000 830,000 965,000 980,000 875,000 955,000 1,200,000 2024... ... . .... ... ... ... _. 0 0 1,030,000 850,000 985,000 1,000,000 895,000 985,000 605,000 2025..._.....__.....__..... _... _..... _. 0 0 0 880,000 1,010,000 1,025,000 915,000 875,000 790,000 2026_. __.. __. ___. _. __.. 0 0 0 0 1,035.000 1,055,000 940.000 905,000 790.000 2027_. ___. __. ___. _. ___. 0 0 0 0 0 1,085000 960,000 940000 790,000 2028.._________________. 0 0 0 0 0 0 980,000 960 000 790,000 2029._....... _..... _....... _....... _...... 0 0 0 0 0 0 0 960,000 790,000 2030._.....__.....__..... _.....__...... 0 0 0 0 0 0 0 0 790,000 2031.... __.....__..... _..........__... 0 0 0 0 0 0 0 0 0 Total....... ... .... .... ... $1,005,000 $1,725,000 $3,000,000 $3,365,000 $4,945,000 $6,100,000 $6,420,000 $7,505,000 $8,545,000 Fiscal Year Outstanding Total Ending General Obligation The General Obligation Cumulative Rerremeni(3) Principal & June 30 Debt Donds(31 Cecilia) Amount Percent Interest(3) 201..... _....... _..... _..... _..... _... g-9120,000 $ 1,135,000 $10,255,000 $10255,000 19.01% $11,487,974 2023._..... _....... _..... _..... _..... _... ],6]5,000 1.135,000 8,810,000 19065,000 35.35% 9,]83,8]3 2024._..... _.....__.....__... _..... _... 6,550,000 1,135,000 7,685,000 26,750,000 4960% 8,434,623 2025... ... . .... .... _... ... _. 5,495,000 1,135,000 6,630,000 33,380,000 61.89% 7,199,023 2026..._.....__.....__..... _... _..... _. 4,725,000 1,135,000 5,660,000 39,240,000 ]2]5% 6,272360 2027..._.....__.....__..... _... _..... _. 3,]]5,000 1,135,000 4,910,000 a 150,000 81.86% 5,178,135 2028_. ___. __. ___. _. ___. 2,730,000 1,135,000 3,865,000 48,015,000 89.02% 4,031 260 2029_. ___. __. ___. __.. __ 1,]50,000 1,135000 2,885,000 50,900000 94.37% 2,973,110 2030_. ___. __. ___. ___. __ 790,000 1,135000 1,925,000 52,825000 9].94% 1,964,360 2031...... _....... _..... _..... _..... _... 0 1110000 1,110,000 53.935,000 100.00% 1122210 Total...... - _....... _..... _. $42,610,000 $11,325,000 $53,935,000 $58,446,926 Notes l (1) Source. the City. (2) A(terthe June 1, 2021 principal payments on the outstanding debt (3) Subject to change. The remainder of this page rens left hlanA intentionally. 15 Cci 0 k.nn On Johaww <'ounc, Imra SI 1,325,000' GenerzJ 0hissuirw rtnnAx. So a, 20'_1 STATEMENT OF BONDED INDEBTEDNESS(l)(7) City Actual Value, January 1 2019 _... __ ......... Series 2016D... _ _...... ......_. _... $6,857,898,321 City Taxable Value January 1 2019 _... __.. _....... Total(i)(2)___ ____ ____ $7,070,000 _.. ......... ......... $4,258,178,148 Series 20160 ... _....... _..... $1,825,000 Series 20176 ....................................................... 2.920.000 Per Capita Total(t)(2)......................................................... Applicable Ratio to City Ratio to City (2010 Pop. Total Percent Amount Actual Value Taxable Value 67.862 Direct Bonded Debt(3)(4) 553,935,000 100.00% $53,935,000 079% 127 $79477 TIF Revenue Debt(3)(4) 12,805,000 10000% 12,805000 019% 030% 18869 Overlapping Debt Iowa City Community School District ............$181,415,000 5741% $104,150,352 1.52% 2.45% 1.534.74 Clear CreekAmongCommunity School Dist. 85,005,000 004% 34.038 0.00% 0.00% 0.50 Kirkwood Community College(5).... ..... .. 146,249,121 14.87% 2174],244 0.32% 0.51% 320.46 Johnson County ... ... .... ........ 9,920,000 43.63% 4328096 0.06% 0.10% 6378 Total Overlapping Bonded Debt __ ... 5130259730 1.90% 3.06%i$ 91948 Total Direct and Overlapping Bonded Deland) ____ ____ S196,999,730 2.87% 4.63% $2,902.95 Per Capita Actual Value _... .....__ _....._ _.... ......_. _.... $101,05653 Per Capita Taxable Value.. _... _...... _... _....... _.... _....... $ 62,747.61 Nates: (1) Source_ the City, Audited Financial Statements and Treasurer of the State of Iowa, Outstanding Obligations Report debt as of June 30, 2020 for the County, School Districts and Community College. (2) As of the date of Issuance for the Direct Bonded Debt and June 30, 2020 for Overlapping Debt (3) After the June 1. 2021 principal payments on the outstanding debt. (4) Subject to change. (5) Excludes $30,005,000 in Industrial New Jobs Training Certificates, which are expected to be paid by proceeds from anticipated job credits from withholding taxes - OTHER OBLIGATIONS Revenue Debt Payable from Net Revenues of the Municipal Water System Series 2012C .... .... ..... .... ..... ..... ._... $1,070.000 Series 2016D... _ .... ... 2,000,000 Series 20170 _ ____. ___. 4000000 Total(i)(2)___ ____ ____ $7,070,000 Revenue Debt Payable from Net Revenues of the Municipal Sewer System'. Series 20160 ... _....... _..... $1,825,000 Series 20176 ....................................................... 2.920.000 Total(t)(2)......................................................... $4745000 Notes: (1) Source'. the City. (2) After the June 1, 2021 principal payments on the outstanding debt. PROPERTY ASSESSMENT AND TAX INFORMATION Property, Tax Assessment In compliance with See [ion 441.21 oI 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 1975, the State required a reduction in Actual Valuation m 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: 16 SI 1,325,000' GenerzJ OLligniinn rtnnrl., Soo(, 20'_1 PERCENTAGES FOR TAXABLE VALUATION AFTER ROLLBACKS(/) Percentages for Taxable Valuation After Rollbacks(/) Multi- As Land Commercial Fiscal Year Residential Residenfial@I & Building _ AIndustrial 1012113. 50.]518% NIA 5].5411% 100.0000 2013114. ............... 5% NIA 59.9334% 100.0000%% 2014/15 ............... 5440024,4002% NIA 43.3997% 95.0000% 2015/16 ............... 55.7335% NIA 44.7021% 90.0000% 2016/17 ................ 55.6259% 86.2500% 46.1068% 90.0000% 2017/18__- ____ 589391% 825000% 474998% 900000% 2018/19....___..._. 556209% ]8]500% 544480% 900000% 2019120, 56.9180% 750000% 90.0000% 2020121 ................ 55.4043% 71.2500% 814832% 840305% 90.0000% 2021/22 ................ 56.4094% 40.5000% 84.0305% 90.0000% Notes: (1) Source -thelowa Department ofRevenue - (2) New category beginning with fiscal year 2017. Property is assessed on a calendar year basis. The assessments finalized as of January 1 of each year are applied to the following tax year. For example, the assess'ments finalized on January 1,2019, are used to calculate tax liability for the tax year slarting.luly I, 2020 through ,lune 30, 2021. BUILDING PERMITS New construction building permits valuation have averaged $141,169,456 annually over the last 5 years in the City, excluding the value of land. City Building Permits(l) (Excludes the Value of Land) Calendar Year'. 2017 2018 2019 2020 2021(2) New Construction No. of New Permits .................................... 211 151 120 120 31 Valuation :.................................................. $108,285,64] $115,8]2,543 $134,485,833 $51,863,761 $11,434,686 Remodeling Repair and Additions: No. of New Permits'______________.. Total Permits... ......_......._....._..... Total Valuations ................................. Notes: (1) Source: theCity. (2) As of March 31, 2021, Property Tax Collection 507 467 484 430 78 $108532366 $ 76942267 is 97036048 $35438412 $12587481 718 618 604 550 109 $216,818,013 $192,814,810 $231,521,881 $8],302,1]3 $24,022,167 Each county is required by State law to collect all tax levies within itsjurisdiction and remit, before the fifteenth of each month, 01e amount collected through the last day m7the preceding month to underlying units of govcmment, including the City. Property tax payments are made at the office of each county treasurer in full or one-half by September 30 and March 31, pursuant to the Code of Iowa, Sections 445.36 and 445.37. Where the first half (if any property tax has not been paid by October I, such installment becomes delinquent. If the second installment is not paid, it becomes delinquent on April L Delinquent taxes and special assessments are subject to a penalty at the rate of one and one-half percent per month, to a maxinnum oCcighteen percent per arml If taxes are not paid when due, the property, may be offered at the regular tax sale on the third Tuesday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property, and funds so received are applied to the payment of taxes. A property owner may redeem from the regular tax sale, but failing redemption within two years, the tax sale purchaser is entitled to a deed which in general conveys the title free and deer of all liens except inure installments of taxes. 17 C10 0 k... a Cih'. Johaww <'onnm lora 511,325,000+ Ovnrml ODligriirw m.ml.. &-,Ir. 20'_1 PROPERTY VALUATIONS AND TREND OF VALUATIONS ACTUAL (100%) VALUATIONS FOR THE CITY(l) Fiscal Year 2017118 Property Class Levy Year: 2016 Residential ............ ............. $4.011,31],530 Agricultural .......... .......... 3,443,020 Commercial . _.... ... 8]].491,]3] Industrial __.... ... ]94]4,988 Multi -residential ... __..._. 420.082,751 Railroads _____ 3,984,932 Utilities without Gas and Elee[nc(2)- _____- 6,734,894 Gas and Electric Utility(2)._....._......._.....__...... 94,582,279 Less. Military Exemption. . (2.635.3961 Total... .......... ............ $5494.4]6,]35 Percent Change +T-) ........................................ 2]01 Notes- (1) Source: Iowa Department of Management. (2) See "PROPERTY TAX INFORMATION -Utility Property Tax Replacement" herein. (3) Based on 2015 Actual Valuation of$5,350,243,693. For the January 1.2020 levy year, the City's Taxable Valuation was comprised of approximately 66nis residential, 23% commercial, 8% multi -residential, 2% industrial, 1% utilities and less than 1% agriculture and military exemption. PROPERTY VALUATIONS AND TREND OF VALUATIONS TAXABLE ("ROLLBACK") VALUATIONS FOR THE CITY(/) Fiscal Year. 2017118 Pmoerty Class Levy Year 2016 Residential .... ._.. _.....__ Preliminary 2018119 _.. 1,618,090 2019120 789,742,578 2020121 2021122 2017 346,568,385 2018 3,580439 2019 2020 $4.2]9.194,820 _.. 41,702,196 $4431.104,380 (2.635.3961 $4995810]50 $5140,954,110 2,626150 3.55%(3) 2,539,080 1,452,029 1,748,000 1,]2],980 964,588,039 1,000,704,323 1,003,525,240 1,104,820, ]49 1,115,028,021 74,013,639 79,346,989 72,001269 80,669,700 80,001410 482.118,763 502.252,347 3]0,8]5,229 548.053,873 549444,612 3,549,414 ......... 3,601348 3,664,971 4,488,469 4,072,190 7,099,293 ......... 7,380408 4,276,538 6,152,547 4,339,508 9],050,]16 ........ 109,124,421 50,595,608 118,583,613 126,1]1 2]4 (2.5]9.8361 (2.489.0881 (2.392.]841 (2.435.3801 (2.392.]841 $5907.660,998 (1) $5133.5]0,208 $4393,9]9,]23 $585].898,321 $],019.346,321 752% not include Levies 382% 3.19% 1181% 235% Notes- (1) Source: Iowa Department of Management. (2) See "PROPERTY TAX INFORMATION -Utility Property Tax Replacement" herein. (3) Based on 2015 Actual Valuation of$5,350,243,693. For the January 1.2020 levy year, the City's Taxable Valuation was comprised of approximately 66nis residential, 23% commercial, 8% multi -residential, 2% industrial, 1% utilities and less than 1% agriculture and military exemption. PROPERTY VALUATIONS AND TREND OF VALUATIONS TAXABLE ("ROLLBACK") VALUATIONS FOR THE CITY(/) Fiscal Year. 2017118 Pmoerty Class Levy Year 2016 Residential .... ._.. _.....__ $2,28400],603 Agricultural .... _. .... _.. 1,618,090 Commercial ____ _____ 789,742,578 Industrial ____ _____ ]152],489 Multi -residential ____ ____. 346,568,385 Railroads _........ 3,580439 Utilities without Gas and Electril __._____._. 6,734,894 Gas and Electric DotLY(2J._.. _._...___.. _.__.. _.. 41,702,196 Less: Military Exemption ... .... ..... .... .... (2.635.3961 Total... _.. ......... $3,542,852,2]8 Percent Change +O __.. ._.__.... 3.55%(3) Nates' (1) Source'. Iowa Department of Management. (2) See"PROPERTY TAX INFORMATION- Utility Property Tax Replacement" herein. (3) Based on 2015 Taxable Valuation of $3,421,386,133 LEVIES AND TAX COLLECTIONS(/) The following shows the trend in the City's tax extensions and collections. Levy Fiscal Amount Preliminary 2018119 2019120 2020121 2021/22 Collected(21 2017 2918 ____2011-12.. 2019 2020 $49,543,860 $2,380,126,625 $2,522,095,595 $2,]51410,912 2,899,981,623 50419,618 1,429,547 1,425,151 1,424,328 1,452,029 500515]] 868,129,247 900.633,903 994,338,692 1,003,525,240 51,496,353 66,612,275 71412,290 ]2,602,]30 72,001269 52,020,805 379,668,606 376,689,677 390488,458 3]0,8]5,229 55,35],35] 3,194,473 3,241213 ......... 4,039,622 3,664,971 56,525,799 7,099,293 7,386,408 ......... 6,152,547 4,276,538 59,115,402 41,797,475 42,719,065 ........ 40,156,239 50,595,608 59,360.168 (2.5]9.8361 (2.469.0881 (2.435.3801 (2.392.]841 --In Collection $3,]454]],]05 $3,923,114,214 (1) $4258,178,148 $4393,9]9,]23 City- Does 572% 474% not include Levies 8.54% 3.19% not Include Nates' (1) Source'. Iowa Department of Management. (2) See"PROPERTY TAX INFORMATION- Utility Property Tax Replacement" herein. (3) Based on 2015 Taxable Valuation of $3,421,386,133 LEVIES AND TAX COLLECTIONS(/) The following shows the trend in the City's tax extensions and collections. Levy Fiscal Amount Amount Percent Year Year Levied Collected(21 Collected 2010_— ____2011-12.. ____ $49,589988 $49,543,860 99.91% 2011...........2012-13 ______ 5040],3]5 50419,618 10002% 2012............2013-14 ______ 50,307,189 500515]] 9949% 2013 ...............2014-15..._....._.. 51,608,]30 51,496,353 9]]0% 2014 ...............2015-16.........._.. 52,033.966 52,020,805 99.97% 2015 ...............2016-17.........._.. 55,330223 55,35],35] 100.05% 2016 ...... ......... 201]-18...___..._ 56,458,399 56,525,799 100.12% 2017 ...... ......... 2018-19...___..._ 59,173,825 59,115,402 99.90% 2018 ...... ........ 2019-20...__....... 60296.653 59,360.168 9845% 2019...........2020-21 ______ 65,849,136 --In Collection - - 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. C'/0'0 k...a On Johaww<'onnm lora 5/ 1,325,000' GenerzJ Ohliem...7 /fond,, Soo, 20'_1 LARGER TAXPAYERS(I) Notes'. (1) Source: the County. (2) Every effort has been made to seek out and repent the larger taxpayer. However, many of the taxpayers listed contain multiple parcels and It Is possible that some parcels and their valuations have been overlooked. Levy Limits Normal municipal operations and maintenance costs are generally funded through the corporate property tax levy. Iowa State Code docs not allow the municipal general fund to be taxed above $8.10 per thousand dollars of taxable value in any one year. In addition to the General Fund, there are several other tax funds that the City can create and use for specific purposes. TAX RATES Levy Years 2015 - 2019(/)(2) Levy Year 2019 Taxpayer Name Business/Service Taxable Vertical American College Testing, Inc take ACT Inc) ...... Commercial Property ............ ...... $45,139,688 Mig American Energy ......... ........... Utility ...... .......... ........... 36,567690 Rise at R'iverfront Crossings, LLC....... .... .... .Apartments _........ ......... ........ 30,679,064 BBCS-Hawkeye Housing LLC __... __..... Real Estate ManagemenVApanments _. 27,628,800 MldWestOne Bank. ___. ___. Financial Institution ____ ____ 24.040,503 Tailwind Iowa City, LLC ___. ____. Real Estate Development ____ ____ 23029,721 Dealer Properties IC LLC _... _....... Commercial Property ......... ......... 20,522,421 Graduate Iowa City Owner LLC ...Hotel _.... _....... 20,475,612 Rivedront Crossing Hospitality Owners LLC ...........Commercial Property ............ ........ 17,779,671 Procter & Gamble LLC ......... ...........Industrial Property. ............ .... 16 76458 Total .......... ....... .......... ....... ... $263.027758 Ten Larger Taxpayers as Percent of City s 2019 Taxable Valuation ($4,258178148) _. .... 6.18% Notes'. (1) Source: the County. (2) Every effort has been made to seek out and repent the larger taxpayer. However, many of the taxpayers listed contain multiple parcels and It Is possible that some parcels and their valuations have been overlooked. Levy Limits Normal municipal operations and maintenance costs are generally funded through the corporate property tax levy. Iowa State Code docs not allow the municipal general fund to be taxed above $8.10 per thousand dollars of taxable value in any one year. In addition to the General Fund, there are several other tax funds that the City can create and use for specific purposes. TAX RATES 19 Levy Years 2015 - 2019(/)(2) (Per $1,000 Actual Valuation) Fiscal Year 2016/17 2017118 2018/19 2019/20 2020/21 Levy Year. 2015 2016 2017 2018 2019 City: General Fund .... ._.. _.....__. $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 Emergency Levy .... _...... .... _....... ... 0.00000 0.00000 0.00000 0.00000 0.24000 Debt Service Fund ____ _____ 3.82846 3.57846 322846 297846 2.57846 Employee Benefits __ _____ 3.14415 3.14415 3.34415 324415 3.34415 Capital Improvement ....... .._......... 0.00000 0.00000 0.00000 0.00000 0.00000 Other.... _.... _...._ 1.51044 1.51044 1.51044 1.51044 1.51044 Total City __.... ......_..... $16.58305 $16.33305 $16.18305 $15.83305 $15.77305 Johnson County .... .... ... ...... .... ._... $ 6.77140 $ 6.85143 $ 6.53594 $ 6.49278 $ 6.34581 Iowa City Community School District. 13.98935 13.95855 14.85629 14.79097 14.83935 Kirkwood _.. _ _____ 1.08048 1.13174 120354 121331 12573 Other._. ____ _____ 0.32450 0.33036 0.30557 027066 0.33110 Total Tax Rate(3) ____ _____. $38.74878 $3860513 $3968439 $38600]] $38.54661 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. 19 Cii1i a(lonn Cit Johaww Conn lmrzi SI 1,325,000' GenerzJ ODli aii.w rtnnAs, v, ie. 20'_1 Tax Levy Procedures The Bonds are general obligations of the City, payable from and secured by a continuing ad valorem tax levied against all of the property valuation within the City. As part of the budgetary process each fiscal year, the City will have an obligation to request a debt service levy to be applied against all of the taxable property within the City, Afailure on the part of the City to make a timely levy request or a levy request by the City that is inaccurate or is insufficient to make full payments of the debt service of the Bonds for a particular fiscal year may cause Bond holders to experience delay in the receipt of distributions of principal of and/or interest on the Bonds. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (cons'is'ting or of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the resolution for the Bonds) may have to be enforced from year to year. Notwithstanding the foregoing, Iowa Code section 76.2 provides when an Iowa political subdivision issues general obligation bonds. --the governing authority of these political subdivisions before issuing bonds shall, by resolution, provide for the assessment of an annual levy upon all the taxable property in the political Subdivision sufficient to pay the interest and principal of the bonds within a period named not exceeding twenty years. A certified copy of this resolution shall be filed with the county auditor or auditors of the counties in which the political subdivision is located; and the tiling shall make it a duty of the auditor(s) 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." Utility Property Tax Replacement Property owned by entities involved primarily in the production, delivery, service and sale orclectrieity and natural gas ("Utilities") pay a replacement tax based upon the delivery of energy by Utilities in lieu of property taxes. All replacement taxes are allocated among local taxing bodies by the State Department of Rcvcil and the Department of Management. This allocation is made in accordance with a general allocation formula developed by the Department of Management on the basis of general property tax equivalents. Utility properties paying the replacement tax are exempt from the levy of property tax by political subdivisions. In addition to the replacement tax, Utility property will continue to be valued by a special method as provided in the statute and taxed at the rate ofthree cents per one thousand dollars for the gencml fund of the State. By statute, the replacement lax collected by the Slate and allocated among local taxing bodies (including the City) shall be treated as property lax when received and shall be disposed of by the county treasurer as taxes on real estate. It is possible that the general obligation debt capacity of the City could be adjudicated to be proportionately reduced in future years if Utility property were determined to be other than "taxable properly" for purposes of computing the City's debt limit under Article XI of the Constitution of the State of Iowa. There can be no assurance that future legislation will not (i) operate to reduce the amount of debt the City can issue or (ii) adversely affect the City's ability to levy taxes in the future for the payment of the principal of and interest on its outstanding debt obligations, including the Bonds. Approximately 1% of the City's levy year 2020 taxable valuation currently is utility property. Tax Increment Financing The Code of Iowa currently authorizes the use of two types of tax increment financing by local taxing districts in the State of Iowa, The lirst type allows local governments to establish TIF districts for the purposes oflinancing designated urban renewal projects which contribute to the in redevelopment and economic development of the immediate area. The taxable valuation used for this typo of TIF district in the City for levy year 2020 is $131,180,258. 20 C'0a(lonn Cis. Johaww toeenm foll a 5/ 1,325,000' Ovnrml ODli aiiew m.m1.. Sulu. 20'_1 The second type of tax increment financing was authorized by state legislative action in the mid-19S0's. The area community colleges can establish TIF districts by contract with specific local businesses and industries to provide jobs training programming for new employees ofexishag expanding businesses or employees of new businesses. Therevenues from these job training TLF districts then retires the debt incurred from the issuance ofjohs training certificates which finance the cost of jobs training programming over a maximum often years. Upon payment of all jobs training certificates, the district dissolves and the incremental value from the new or expanded business reverts to the general tax base. There is no current valuation for this second type of TIF district. 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 City Council 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%, (it) 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 [lie assessed value of telecommunication piopertics. 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 Acts provisions [list 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 or 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, the Bonds are secured by an unlimited ad valorem property tax as described more fully in the "SECURITY AND SOURCE OF PAYMENT" herein. 21 Cii1i a(lonn Cit Johaww Coeenm lmrze SI 1,325,000' GenerzJ Ohii aiiew nnnAs, Soo(, 20'_1 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 Offend 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, as'ses'sment of levy procedures for the levy of taxes by the City. FINANCIAL INFORMATION Financial Reports The City's financial statements are audited annually by certified public accountants. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as aro the proprietary fund and fiduciary fund financial statements. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governments. See APPENDIX A for more detail. No Consent or Updated Information Requested of the Auditor The tables and excerpts (collectively, the "Excerpted Financial Information") contained in this "FINANCIAL INFORMATION" section are from the audited financial statements of the City, including the audited financial statements for the fiscal year ended June 30, 2020 (the "2020 ACFR"). The 2020 ACFR has been audited by Rohnsack & Frommelt LLP, CertifiCd Public Accountants, Moline, Illinois, (the "Auditor"), and received by the City Council. The City has not requested the Auditor to update information contained in the Excerpted Financial Information and the 2020 ACFR; nor has the City requested that the Auditor consent to the use of the Excerpted Financial Information and the 2020 ACFR in this Final Official Statement. The inclusion of the Excerpted Financial Information and the 2020 ACFR in this Final Official Statement in and of itself is not intended to demonstrate the fiscal condition of the City since the date of the 2020 ACFR Questions or inquiries relating to financial information of the City since the date of the 2020 ACFR should be directed to the City. Summary Financial Information The following tables are summaries and do not purport to be the complete ACFRs, copies of which are available upon request See APPENDIX A for the City's 2020 ACFR. The City's expects its General Fund balance for dtc fiscal year ending June 30, 2021 to increase be approximately S 1,114,483. The City has approved a budget for fiscal year 2022 with an anticipated increase to the General Fund balance of approximately $1,156,796. The remainder of'this page a as left blank intentionally. 22 C10 0 k... a Cih'. Johaww <'ounc, foirzi 5/ 1,325,000' GenerzJ Ohligminn rtnnAs, Soo, 20'_I STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES(/) (Amounts Expressed in Thousands) (carvometI on follnn•og page) 23 2016 2917 2018 2019 2026 Assets: Equity In Pooled Cash and Investments _.....__.....__....._..... $ 84,052 $111,030 $109,860 $111,645 $113,883 Receivables: Property Tax _...... ._...... 55,482 56.639 59,538 60,529 66,479 Accounts and UnbAled Usage ......_. ...._... 953 820 817 941 ]0] Interest ____ ___. ___. 284 428 920 967 547 Notes_ __.. ____ ____ 16252 5,524 5.304 5,209 5.300 Internal Balances __- _ __- ___- (13,688) (16494) (16,069) (20,055) (22,551) Due from Other Governments _... _..... 5,987 4.519 4,067 7,584 7,125 Pretends and Other Assets ..__... ..__... 10 811 810 907 13 Invenlodes ......_. ....__. 688 730 602 650 793 Assets Held for Resale ..... ......_. ......_. 582 750 562 689 480 Restricted Assets'. Equity in Pooled Cash and Investments ..... ....... _....... _....... ... 36,914 24,560 26,108 18,553 19,743 Other Post Employment Benefits Asset ......................... 40 35 0 0 0 Capital Assets'. Land and Construction In Progress-___ ___ 48,275 52,545 ]3,1]6 51,291 41,160 Other Capital Assets (Net of Accumulated Depreciation)__._ 15694] 1]3598 1]4835 210302 232]1] Total Assets _.- _... ....._ $394]]8 $416495 $440,530 $449212 466396 Deferred Outflows of Resources: Pension Related Deferred Outflows ........ .... ..... .... ._... $ ],192 $ 13,131 $ 11,4]] $ 11,255 $ 10,119 OPEB Related Deferred Outflows..... _.....__....._.....__ 0 0 637 146] 1302 Total Deferred Outflows of Resources_.____. __. ___. _. $ ),192 T-1 3 1-31 $ 12,114 $ 12,722 $ 11,421 Liabilities: Accounts Payable __.... _..... _..... $ 3.374 It 2,127 $ 5,168 $ 3,399 $ 3,494 Contracts Payable _...... _..... _..... 2,]]3 2,521 3,663 5,864 3,725 Accrued Liabilities ........ ........ ....... 4,143 4.182 4,193 5,231 5,558 Interest Payable .......... __........ .... 110 133 134 151 158 Deposits ......_. ......_. 1,]15 L230 952 1,008 1,222 Advances from Grantors__ ___. ___. 47 144 124 98 3 Due to Other Governments ___. ___. 402 42 29 31 38 Notes Payable ____ ___. ___. 582 663 475 602 0 Noncurrent Liabilities'. Due Within One Year Employee Vested Benefits ...._... ..__... 1,185 1,252 1,253 1,308 1,525 Bonds Payable .......... ....... .... ....... 10,384 6230 9,612 11,534 11,119 Due in More Than One Year'. Employee Vested Benefits ......_. ......_. 94 989 987 1,012 1,206 Net Pension Liability__. ___. 30,539 39,080 38,867 38,890 39.796 Other Pest Employment Benefits Liability ____________. 3,227 3.660 5472 6,401 6,253 Notes Payable ___- _- _. _- _. 211 211 211 211 211 Bonds Payable __.... _..... _.... 48.105 59509 5630] 56]]1 58653 Total Liabilities. __.... _..... _..... $10]]44 $1239]3 $129,447 $132511 $132,961 Deferred Inflows of Resources: Pension Related Deferred Inflows ......... .... ..... ._...... . $ 3,740 $ 1,603 $ 1,565 $ 1,940 $ 3,045 OPEB Related Deferred Inflows_.. __....._.....__....._.....__. 0 0 246 216 560 Succeeding Year Properly Taxes __________________. 55,330 56,459 59.173 60,296 65.850 Notes. __... ___. ___. 11,226 0 0 0 0 Grams ___. ___ 12 0 0 0 0 Total Deferred Inflows of Resources.._......._....._......._..._ $ ]0308 58062 60,984 $ 62452 69455 (carvometI on follnn•og page) 23 C'10'0 k...a Cih'. Johaww <'onnm Imra SI 1,325,000' GenerzJ OLlr minn rtnnrL, Segirr 20'_1 STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES(]) (Amounts Expressed in Thousands) (Continued) STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES(]) (Amounts Expressed in Thousands) 2016 2917 2018 2019 2026 Net Position: 2018 2019 2020 Function/Programs: Net Investment in Capital Assets .... ..... .... ..... .... .__. $163,362 $183651 $203,0]] $208,028 $220,004 Restricted for or by: Public Safety _.___ .__._. .. _. S(15,969) Employee Benefits ..... ._..... ......_. 1,671 2,810 3,119 4,249 3,875 Capital Projects: (3,084) (2.516) (4,737) Culture and Recreation.... ....... ........... (13,535) Expendable(2) __ ___. ___. 31,456 30,856 21,463 17,020 11,464 Nonexpendable(2) ___ ___. ___. 0 0 0 0 278 Debt Service. _.... ......_. ......_. 6,463 7,221 8,423 9,514 9,590 Police. _.... ......_. ......_. 458 349 283 214 294 Other Purposes 5565]5$( 9579 58265 General Revenues: Expendable... .... ._.. ...... ... 1,65] 2.590 4,469 4,359 4,552 Nonexpendable ..__.. ..__. .._... 0 0 0 0 69 Grant Agreement .... _.. .... _. __.. 449 3,850 3,733 3,463 3,456 Unrestricted ___ ___. ___ 18402 16264 1]646 20124 21819 Total Net Position ____ ___. ___. $223,918 $247,591 $262213 $266,971 $275401 Notes_ (1) Source:Audited financial statements of the City for the fiscal years ended June 30, 2016 through 2020. 1,513 Earnings on Investments. ___. (2) For fiscal years 2016 - 2019 amount is classified as expendable_ 2.368 3,257 2.585 Gain on Disposal of Capital Assets__________________. STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES(]) (Amounts Expressed in Thousands) 24 Audited for the Year Ended June 30 2016 2017 2018 2019 2020 Function/Programs: Governmental Activities: Public Safety _.___ .__._. .. _. S(15,969) $(18,053) $(20,466) $(20,862) $(22,728) Public Works ............ ......... ........... 996 6.746 (3,084) (2.516) (4,737) Culture and Recreation.... ....... ........... (13,535) (14,573) (15,189) (14,834) (16,451) Community and Economic Development .... ..... .... ..... . (4,322) (6,264) (1 Q166) (14,116) (],]60) General Government.__.. ___.... ... (4,988) (4,600) (5,338) (5,807) (6,137) Interest on Long Term Debt __. __ Ifi 2287) J14881 (1441141 (14444 (14`52 Total Governmental Activtes__.8 3f 9103) 36225 5565]5$( 9579 58265 General Revenues: Property Taxes, Levied for General Purposes ......._......._....._ $ 53,114 $ 57,649 $ 59,046 $ 61,]39 $ 62,846 Hotel/Motel Tax ............ ......... ........... 1,0]9 1.13] 1,046 1.302 1,135 Gas and Electric Tax....... ....... ......... 764 726 684 668 677 Utility Franchise Tax........ _....... ...... 874 939 976 965 884 Grants and Contributions Not Restricted to Specific Purposes. 2,080 1,583 1,547 1,552 1,513 Earnings on Investments. ___. ___. 1,045 1,397 2.368 3,257 2.585 Gain on Disposal of Capital Assets__________________. 218 2,151 140 186 111 Miscellaneous ____ ___. ____ 4464 3,369 3,656 3,329 3,331 Transfers __. -__._ (6,395) (7,053) 1,814 (8,661) (6,387) Reassignment of Cable Television to Governmental Activities ............ ........... ........... 82 0 0 0 0 Total General Revenues and Transfers ................................. 5] 325 61 898 ]1 2P 64 33] 66 .69 Changes in Net Position __. -....._ $ 18,222 $ 23,673 $ 15,620 $ 4,758 $ 8,430 Net Position Beginning of Year __. _.... .. 205696 223918 246.593(2) 262213 2669]1 Net Position End of Year... __. .. _ $223,918 $247,591 $262.213 $266,971 $275,401 Notes_ (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2016 through 2020. (2) Restated. 24 C10 00.1717 Cih'. Johaww <'onnm biro SI 1,325,000' GenerzJ 01i ... 7 rtr,nAs, Sega, 20'_1 BALANCESHEET GENERAL FUND(/) (AnnounU Expressed in Thousands) Total Liabilities, Deferred Inflows of Resources and Fund Balances.. _... _..... $82,58] $80,952 H]q 4]5 Nate: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2016 through 2020 The I'enurincli of this page was (eft blank intentionsi 25 2016 2017 2018 2019 2020 Assets: Equity In Pooled Cash and Investments _.....__.....__....._..._.. $30,214 $32,500 $36,321 $38,979 $42,371 Receivables: Property Taxes ._........ ...... 31,825 32.965 34,973 36,301 40,081 Accounts and Unbilled Usage ......_. .._..... 449 410 496 491 355 Interest ____ ___. ___. 163 161 276 360 163 Notes.. __ ____ ___. 1305 1,292 1276 1,329 1,252 Due from Other Funds..... ___. ___. 0 0 0 0 299 Advances to Other Funds _... _..... 0 0 0 56 0 Due from Other Governments ._.__. ____. 1,758 1,887 1,941 2,131 3,661 Prepaid Item ......_. ..__... 10 719 726 818 13 Assets Held for Resale._.. ......_. ..__. 582 750 562 689 480 Restricted Assets'. Equity in Pooled Cash and Investments ....... ._..... .... .__.. 222]] 10268 1904 2028 2209 Total Assets ____ ___. ___. $87,583 $80,952 $]84]5 $83,182 $90.884 Liabilities, Deferred Inflows of Resources and Fund Balances: Liabilities'. Accounts Payable _...... _..... _..._.. $ 1376 $1,191 $ 1,492 $ 1,49] $ 1,356 Accrued Liabilities. __.. ___._ __.__ 1,141 1,321 1,391 1,466 1,673 Due to Other Governments .... ..... .... ..... .... ..... ._... 29 38 29 31 38 Interest Payable.... ._.. ...... ... 0 4 5 17 0 Notes Payable .... 582 663 475 602 0 Liabilities Payable from Restricted Assets Deposits ___. ___. 1,]10 1,224 947 1,004 1217 Advances from Grantors ___. ____ 0 ] 113 94 0 Total Liabilities _..- ......_._.... 4838 $4448 $ 4452 4]11 $ 4284 Deferred Inflows of Resources: Unavailable Revenues: Succeeding Year Property Taxes..._......._.....__....._.....__... $31,]39 $32.863 $34,764 $36,176 $39,720 Notes __... ____ ___. 1,305 0 0 0 0 Grants ____ ___. ___. 15 6 9 34 1,791 Other _ ___ __- 1 434 1,539 600 1 643 1,71 Total Deferred Inflows of Resources $34,493 $34408 $363]3 $37,853 $4322] Fund Balances: Nonspendable .......... ......... ........... $ 69 $ 788 $ 793 $ 887 $ 549 Restricted _........ ....... _..... 18,975 9.74 1,942 1,808 1,]4] Committed ..... .......... ..... 4,699 5.199 4,962 0 0 Assigned __._ ____ ___. 1,143 1,342 1437 3,565 5708 Unassigned _._ ___. ___ 23366 24]93 28516 34358 35369 Total Fund Balances $48,252 $42,096 $37,650 $40,618 433]3 Total Liabilities, Deferred Inflows of Resources and Fund Balances.. _... _..... $82,58] $80,952 H]q 4]5 Nate: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2016 through 2020 The I'enurincli of this page was (eft blank intentionsi 25 C'10 0 k... a C'im Johaww <'onno, fora SI 1,325,000' GenerzJ 0hivcuirw rtnnA,, So a, 20'_1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL. FUND(/) (Amounts Expressed in Thousands) Expenditures: Audited Fiscal Year Ended June 30 2016 2017 2018 2019 2020 Revenues: Public Safety ---- ___. ___. $20,967 $22,005 $22,762 $23,858 Taxes.. ___ ___. ___. $32,229 $34,290 $35,363 $37,426 $38.087 Licenses and Pearchus.__.. ___. ____. 3056 3,521 2,734 2,981 2.352 Intergovernmental __._ ___. ____. 3,830 3,574 3,786 4,099 4,009 Charges for Service __.... ....__. ..__... 1,543 1,665 1,465 1,595 1,113 Fines and Forforl 760 750 695 776 609 Use of Money and Property. ......... ......... 749 839 1,164 1,599 1,102 Miscellaneous .... ._.. _...... ....... 1430 1692 18]8 1950 2031 Total Revenues ...._.. ._...... ...._. 4359] 4$ 6331 $47,085$50,426 4$9303 Expenditures: Current Public Safety ---- ___. ___. $20,967 $22,005 $22,762 $23,858 $24,611 Public Works ... ......_. ..__... 1,312 1,803 1,871 1,922 2,219 Cultural and Recreation... .. _....... 12,038 12,890 13,099 13,096 13,146 Community and Economic Development....._......._ ................ 2,842 3074 2,785 3,561 3,678 General Government..... ._...... ..__. 5,479 5A71 5,550 6,144 6,336 Capital Outlay .... ._.. _...... .......1651 1463 2124 1]18 2088 Total Expenditures .... _...... .... _....... ___. 4$ 4289$46.706$48,191$50,29 9 5$20]8 Excess(Deficiency)of Revenues Over (Under) Expenditures- 692 375 1108 12] $(?]]5) Other Financing Sources (Uses('. Issuance of Debt ..... ....__. ..__... $ 0 $ 0 $ 17 $ 0 $ 0 Sale of Capital Assets ..... ...._... ....... 252 268 140 758 111 Transfers In .._.. ......_. ...._... 10,692 10.]25 10,138 11548 12,578 Transfers Out. . _ ....... .,. 11129 1180231 13635 9465 7159 Total Other Financing Sources and (Uses)... .... $ (185 7.030 $ (33401 2841 $ 5530 Net Change In Fund Balances __- _- _. $ (8]]) $ (7,405) $ (4,446) $ 2,968 $ 2,755 Fund Balances Beginning ...._... __..... $49129 $49501(2) $4209fi $37,650 $40618618 Fund Balances, Ending..... ...._... _..... Iad252 $42096 S3Z,650 $40 61A $93,329 Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2016 through 2020. (2) Restated. REGISTRATION, TRANSFER AND EXCHANGE See also APPENDIX B - BOOK-ENTRV SVSTEM for information on registration, transfer and exchange of book -entry bonds. The Bonds will be initially issued as book -entry bonds. The City shall cause books (the "Bond Register') for the registration and for the transfer ofthe Bonds to be kept at the principal of maintained Cor the purpose by the Bond Registrar in St. Paul, Minnesota. The City will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the City for use in the transfer and exchange of Bonds. Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the Bond Resolution. Upon surrender for transfer or exchange of any Bond at the principal office maintained for the purpose by the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner's attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same maturity and interest rate of authorized denominations, for a like aggregate principal amount. The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount ofoutstanding Bonds breach maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less Bonds previously paid. 26 Cii1i 0 10nn Cit Johaww Coeenm loirze SI 1,325,000' GenerzJ ODli aiiew rtnnAs, Soo(, 20'_1 The Bond Registrar shall not be required to transfer or exchange any Bond following the close of business on the fifteenth day ofthe month next preceding an interest payment date on such bond (known as the record date), nor to transfer or exchange any Bond after notice calling such Bond I'or redemption has been mailed, not during a peeiod of fifteen days next preceding mailing of a notice of redemption of any Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the registered owner thereof or such owner's legal representative. NI such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a bond surrendered for redemption. TAX MATTERS Tax Exemption Federal tax law contains a number of requirements and restrictions that apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of Bond proceeds and facilities financed with Bond proceeds, and certain other matters. The City has covenanted to comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable Four gross income for federal income tax purposes. Failure to comply with certain or such covenants could cause interest on the Bonds to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. Subject to the City's compliance with the above -referenced covenants, under present law, in the opinion of Bond Counsel- the interest on the Bonds is excludable from gross income for federal income tax purposes and interest on the Bonds is not an item of tax preference for purposes of the federal altemative minimum tax. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security m Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations Bond Counsel will not express any opinion as to such collateral tax consequences. Prospective purchasers of the Bonds should consult their lax advisors as to collateral federal income tax consequences. The interest on the Bonds is not exempt from present Iowa income taxes. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability crony such state and local taxes. NOT Qualified Tax Exemption Obligations The City will NOT designate the Bonds as "qualified tax-exempt obligations". 27 Cii1i 0 10nn Cit Johaww Coeenm lmrze SI 1,325,000' GenerzJ 0hiigyuiew rtnnAs, v, ie. 20'_1 Discount and Premium Bonds The initial public offering price of cci Iain Bonds may be less than the amount payable on such Bonds at maturity ("Discount Bonds"). Purchasers of Discount Bonds should consult with their own tax advisors with respect to the determination of accrued original is's'ue discount on Discount Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Discount Bonds. It is possible that, under applicable provisions governing determination of state and local income taxes, accrued interest on Discount Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment. The initial public offering price of certain Bonds may be greater than the amount of such Bond's at maturity ("Premium Bonds"). Purchasers of the Premium Bonds should consult with their own tax advisors with respect to the determination ofamortizable premium on Premium Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Premium Bonds. Other Tax Advice In addition to the income tax consequences described above, potential investors should consider the additional tax consequences of the acquisition, ownership, and disposition of the Bonds. For instance, state income tax law may differ substantially from state to state, and the lmcgoing is not intended to describe any aspect of the income tax laws of any state. Therefore, potential investors should consult their own tax advisors with respect to federal tax issues and with respect to the various state tax consequences of an investment in Bonds. Audits The Internal Revenue Service (the "Service") has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of the owners thereof for federal income tax proposes. To the best of the City's knowledge, no obligations ofthe Cityare eun'ently under examination by the Service. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome. Reporting and Withholding Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Bonds, arc in curtain cases required to be reported to the Scrvicc. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. Tax Legislation Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may be considered by the Iowa legislature. Court proceedings may also be filed, the outcome of which could modify the tax treatment. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Bonds will not have an adverse effect on the tax status of interest or other income on the Bonds or the market value or marketability of the Bonds. These adverse effects could result, for example, from changes to federal or state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Bonds from gross income for federal or state income tax purposes lot all or certain taxpayers. 28 Citi a(ronn Cit Johaw,n Coeenm foirze 511,325,000' Gummi OLiignelon m.mi,. Soo(, 20'_1 The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities 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 proposed or pending legislation, regulatory initiatives or litigation. The Opinion The FORM OF LEGAL OPINION, in substantially the form set out in APPENDIX C to this preliminary Official Statement, will be delivered at closing. Bond Couns'el's opinion is not a guarantee of a result, or of the tram fiction on which the opinion is rendered, or of the future performance of parties to the transaction, but represents its legal judgment based upon its review of existing statutes, regulations, published rulings and court decisions and the representations and covenants of the City described in this section. No ruling has been sought from the Scry ice with respect to the matters addressed in the opinion of Bond Counsel and Bond Counsel's opinion is not binding on the Service, nor does the rendering of the opinion guarantee the outcome of any legal dispute that may arise out of the transaction. Bond Counsel assumes no obligation to update its opinion after the issue date to reflect any further action, fact or circumstance, or change in law or interpretation, or otherwise. Enforcement There is no trustee or similar person to monitor or enforce the terms of the resolution for issuance ofthe Bonds. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the resolution for the Bonds) may have to be enforced from year to year. The owners of the Bonds cannot foreclose on property within the boundaries of the City or sell such property in orderto pay the debt service on the Bonds. In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth in Bond Counsel's opinion. The opinion will state, in part, that the obligations of the City with respect to the Bonds may be subject to bankmp[cy, insolvency, neorgani7a6011, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, to the exercise of judicial discretion in appropriate cases and to the exercise by the State and its governmental bodies of the police power inherent in the sovereignty of the State and to the exercise by the United States of America of the powers delegated to it by the Constitution of the United States of America. ALL POTENTIAL PURCHASERS OF THE BONDS SHOULD CONSULT WITH THEIR TAX ADVISORS WITH RESPECT TO FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF OWNERSHIP OF THE BONDS (INCLUDING BUT NOT LIMITED TO THOSE LISTED ABOVE). CONTINUING DISCLOSURE For the purpose of complying with Rule 15c2-12 of the Securities Exchange Commission, as amended and interpreted from time to time (the "Rule"), the City will covenant and agree, for the benefit of the registered holders or beneficial owners from time to time of the outstanding Bonds to provide reports of specified information and notice of the occurrence of certain events, as hereinafter described (the "Disclosure Covenants"). The information to be provided on an annual basis, and the events as to which notice is to be given, is set forth in "APPENDIX D — Form of Continuing Disclosure Certificate". This covenant is being made by the City to assist the Underwriters) in complying with the Rule. 29 Cii1i a(lonn Cis. Johaww Coeenm foll a 5f 1,325,000' GenerzJ 0hii saiew rtnnAs, Soo(, 20'_1 Breach of the Disclosure Covenants will not constitute a default or an "Event of Default' under the Bonds or Resolution, respectively. A broker or dealer is to consider a known breach of the Disclosure Covenants, however, before recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the Disclosure Covenants may adversely affect the transferability and liquidity of the Bonds and their market price. Pursuant to the Rule, in the last five years, the City, to the best of its knowledge, failed to timely file a material event notice for a financial obligation entered into on August 1, 2019. The City has taken steps to ensure future filing of this information in compliance with the applicable undertakings. Bond Counsel expresses no opinion as to whcthcr the Disclosure Covenants comply with the requirements of Section (b)(5) of the Rule. OPTIONAL REDEMPLION Bonds due lune I, 2022 - 2027 inclusive, are not subject to optional redemption. Bonds due June I, 2028 - 2031, inclusive, are callable in whole or in part on any date on or after June I, 2027, at a price of par and accrued interest. If selection by lot within a maturity is required, the Registrar shall designate the Bonds to be redeemed by random selection of the names of the registered owners of the entire annual maturity until the total amount of Bonds to be called has been reached. If less than all of the maturity is called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed prior to maturity. DTC will determine by lot the amount of each Participant s interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Thirty days' written notice of redemption shall be given to the registered owner of the Bond. Failure togivc written notice to any registered owner of the Bonds or any defect therein shall not affect the validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. Wiitten notice will be deemed completed upon transmission to the owner of record. LITIGATION There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of tire Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or sale thereof. There is no litigation now pending. or to the knowledge of the City, threatened against the City that is expected to materially impact the financial condition of the City. LEGAL MATTERS The Bonds are subject to approval as to certain legal matters by Ahlers & Cooney, P.C., Des Moines, Iowa, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement except for guidance concerning the sections regarding -TAX MATTERS", and will not pass upon its accuracy, complctcncss, or Sutficicncy. Bond Counsel has not examined nor attempted to examine or verify any of the financial or statistical statements, or data contained in this Official Statement, and will express no opinion with respect thereto. A legal opinion in substantially the form set forth in APPENDIX C to this Official Statement will be delivered at closing. The legal opinion to be delivered concurrently with the delivery of the Bonds expresses the professional judgment of tire attorneys rendering the opinion as to legal issues expressly addressed therein. Be rendering a legal opinion, the opinion giver does not become an insurer or guarantor of the result indicated by that expression of professional judgment, or of the transaction on which the opinion is rendered, or of the future performance of parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. 30 Ci0a(ronn Cit Johaww Coeenm foirze 5i 1,325,000' Ganrmi OLir mlon m.mi,. Su fi. 20'_1 In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth in the Bond Counsel's opinion. The opinion will state, in part, that the obligation of the City with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' tights heretofore of hereafter enacted to the extent constitutionally applicable, and to the exercise of judicial discretion in appropriate cases. OFFICIAL STATEMENT AUTHORIZATION This Official Statement has been authorized for distribution to prospective purchasers ofthe Bonds. All statements, information- and statistics herein are believed to be correct but are not guaranteed by the consultants or by the City, and all expressions of opinion, whether or not so stated, are intended only as such. This Official Statement is not to be construed as a contract or agreement amongst the City, the Underwriter, or the holders of any of the Bonds. Any statements made in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended merely as opinions and not as representations of fact. The information and expressions of opinions contained herein are subject to change without notice and neither the delivery of this Official Statement or the sale of the Bonds made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs ofthe City since the date hcrcof. The information contained in this Official Statement is not guaranteed. INVESTMENT RATING The City has supplied certain information and material concerning the Bonds and the City to the rating service shown on the cover page, including certain information and materials which may not have been included in this Official Statement, as part of its split ieati on for en investment rating on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment rating may be obtained from the rating agency: Moody's Investors Service, 7 World Trade Center at 250 Greenwich Street. New York, New York 10007, telephone 212- 553-1655. UNHEHAVRI FING The Bonds were offered for sale by the City at a public, competitive sale on May 4, 2021. The best bid submitted at the sale was submitted by (the "Underwriter" T The City awarded the contract for sale of the Bonds to the Undawrilei at a price of $ (reflecting the par amount of $ , plus a reoffering premium of $ , and less an Underwriter's discount of S _). The Underwriter has represented to the City that the Bonds have been s'ubs'equently ie -offered to the public initially at the yields or prices set forth in the Final Official Statement. 31 Cii1i o(lonn 0A Johaww Coeenm fora 51 1,325,000' GenerzJ ODli aiirw rtanAx. Soo(, 20'_1 MUNICIPAL ADVISOR The City has engaged Speer Financial, Ire. as municipal advisor (the "Municipal Advisor") in connection with the issuance and sale of the Bonds. The Municipal Advisor is a Registered Municipal Advisor in accordance with the rules of the MSRR. The Municipal Advisor will not participate in the underwriting ofthe Bonds. The financial information included in the Official Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. The Municipal Advisor is not a firm of certified public accountants and does not serve in that capacity or provide accounting services in connection with the Bonds. The Municipal Advisor is not obligated to undertake any independent verification of or to ass'umc any responsibility for the accuracy, complctcncss or fairness of the information contained in this Official Statement, nor is the Municipal Advisor obligated by the City's continuing disclosure undertaking. MISCELLANEOUS Brief descriptions or summaries of the City, the Bonds, the Resolution and other documents, agreements and statutes are included in this Official Statement. The summaries or references herein to the Bonds, the Resolution and other documents, agreements and statutes referred to herein, and the description of the Bonds included herein, do not purport to be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entireties by reference to such documents, and the description her of the Bonds is qualified in its entirety by reference to Ore lorm thereof and the information with respect thereto included in the aforesaid documents. Copies of such documents may be obtained from the City. Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or Owners of any of the Bonds. The attached APPENDICES A, B, C. and D are integral parts of this Official Statement and must be read together with all of the foregoing statements. It is anticipated that CUSIP identification numbers will be printed on the Bond's, but neither the failure to print such numbers on any Bonds nor any error in the printing of such numbers shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for any Bonds. The City has reviewed the information contained herein which relates to it and has approved all such information for use within this Official Statement. The execution and delivery of this Official Statement has been duly authorircd by the City. ^v hje,t a eh ung,_ 32 /y/ DENNIS BOCKENSTEDT Finance Director' CITY OF IOWA CITY Johnson County, Iowa CM a(lonn 0AJohnxw Coeenn, loirze SI 1,325,000' GenerzJ ODligyuiew rtnnAs, Soo(, 20'_1 .APPENDIX A CITY OF IOWA CITY JOHNSON COUNTY. IOWA FISCAL YEAR 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT Ciiyo6 Q)wa City �mm Designed by Neumann Monson Architects, this project represents the ambitious first step in a 14 -acre master plan to consolidate and upgrade a scattered set of aging municipal operations. The predominately concrete structure houses the Streets and Water Departments along with their as's'ociated vehicles and equipment. Program includes shop space, large-scale storage, mezzanine storage with elevator and forklift access, a fire training tower, fire pump truck training, police and fire storage, and vehicle/equipment wash bays. The facility's cast facade faces a residential neighborhood across an arterial just south of downtown. It sets an edge condition for the well -trafficked bike trail that links recreational grounds to the north and south, establishing a civic presence and measured cadence that belies the rough and tumble flexibility that it accommodates deeper into the site. Projecting windows modulate the structure's scale and provide dynamic exterior lighting at night. They diffuse daylight that they admit during work hours—combined with 40 skylights as well as translucent polycarbonate walls on the north and south facades—provides a superior work environment and lends operational efficiencies. The west fagade provides vehicular access to services including shops and wash bays. A 12-1bot canopy provides outdoor cover for materials storage. The building's volumetric aspect ratio enables the mechanical system to heat and cool efficiently. The structure's 50 -foot module anticipates future additions and modifications. Material choices are highly durable, easily maintained, and cost effective. The building's anticipated Lpp.D Cold certification furthers the city's commitment to carbon neutrality as they deliver vital public services hour this facility. r Cameron C„mpbel1 2020 Comprehensive Annual Financial Report City of Iowa City, Iowa For the fiscal year ended June 30, 2020 Prepared by: Finance Department City of Iowa City, Iowa Introductory Section Tab City of Iowa City, Iowa Table of Contents June 30, 2020 Introductory Section Table of contents Page Letteroftransmittal.......... _-....... .-.... _-....... _-....... .-.... _-....... _-....... .- .... _- ....... _- ....... .- .... _- 3 Certificate of Achievement for Excellence in Financial Reporting ..... .......... ....... ._....... .......... .... 13 City organizational chart.._.. ....... .-.... _-....... _-....... .-.... _-....... _-....... .- .... _- ....... _- ....... .- .... _- 14 Cityofficials.................. ........... ................... ........... ................... ........... ................... ........... ................ 15 Financial Section IndependentAuditor's Report............................................................................................................ 17 Management's Discussion and .Analysis...._ ............................. 21 Basic Financial Statcmcnts Government -wide financial statements Statement of net position .... ....... ._.... ._....... ._....... ._..._._....... ._....... ._..._._....... ._....... ._.... 32 Statementof activities .................................................................................................................. 35 Fund financial statements Balance sheet- govcmmcntal funds'............................................................................................ 36 Reconciliation of the balance sheet of the governmental funds to the statement of net position 37 Statement of revenues, expenditures, and changes in fund balances -governmental funds... .... 38 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement ofactivities_.......... ....... ._....... .......... ....... ._....... ....... 39 Statcmcnt of net position - propiiclary funds.............................................................................. 40 Statement of revenues, expenses, and changes is fund net position- proprietary funds ._......... 41 Statement of cash flows - proprietary funds .............. ........ _.................. ........ _.................. ..... 42 Statement of fiduciary assets and liabilities ..... _,...... ........ _........ _,...... ........ _........ _,...... ..... 43 Notes to financial statements ..... ._....... ._..._._....... ._....... ._..._._....... ._ ....... ._..._._....... ._....... 45 Required Supplementary Information Budgetary comparison schedule -budget and actual -all governmental funds and enterprise funds - budgetary basis.................................................................................... 80 Budgetary comparison schedule budget to GAAP reconciliation ..... ......... _.._....... ..... 82 Note to required supplementary information - budgetary reporting....... _...... ....... __.... _.... 83 Schedule of the City's proportionate share of MFPRSI net pension liability ........................ 85 Schedule of City's MFPRSI contributions...._.......................................................... 86 Notes to required supplementary information -MFPRSI pension liability ........................... 88 Schedule of the City's proportionate share of [PERS net pension liability...... _.. _._... _ -. _. 89 Schedule of City's I PERS conh'ibutions.................. _...... _...... ....... _ _....... ....... ......... 90 Notes to required supplementary information -[PERS pension liability......_ ....... ........ .... . 92 Required supplementary information - schedule of changes in the City's total OPEB liability, related ratios and notes_......................................................... _....................... 93 Combining Fund Statements Combining balance sheet - nonmajor governmental funds ... .......... ....... ._....... .......... ....... ._.... 96 Combining statement of revenues, expenditures, and changes in fund balances - nonmajor governmentalfunds...................................................................................................................... 97 Combining statement of net position - nonmajor enterprise funds ................................................ 100 Combining statement of rcvenucs, expenses. and changes in fund net position -nonmajor enterprisefunds .... ._....... ._....... ._.... ._......_._..._._._..._._......_._..._._._..._._......_._..._._._.... 101 Combining statement of cash Flows - nonmajor enterprise funds' .................................................. 102 Combining statement of net position - internal service funds ........................................................ 104 Combining statement of revenues, expenses, and changes in fund net position - internal service funds...... .... --....... .............................. .............................. .............................. -- .... -- ....... --....... 105 City of Iowa City, Iowa Table of Contents June 30, 2020 Pave Combining Fund Statements (continued) Combining statement of cash flows — internal service funds ........................ ........................... 106 Statement of changes in assets and liabilities—agency finds'...................................................108 Statistical Section (Unaudited) Net position by component Changes in net position ............. ........................... Fund balances governmental funds ........ --....... ........ -- ....... -- ....... ........ --....... ........... ........ ....114 Changes in fund balances—governmental funds .... ......................................................... General government tax revenues by source................................................................................116 Assessed and taxable value of property...._......................................................... Property tax rates—direct and overlapping governments _........................... _ ........................... ALS Levies and collections..................................................................................................................119 Principaltaxpavers...... _........ _................ _........ _................ _........ _................ _........ _......... 120 Larger water system customers................._-........—..............._-........—..............._.....................122 Sales history and water system charges._ .......... ....... ._....... .......... ....... ._....... .......... ....... ._ ... 123 Lareer sewer system customers ...... ................... —........ ................... — ........ ................... ._............ 124 Sales history and sewer system charges.......................................................................................125 Ratios of outstanding debt by tvpe...............................................................................................126 Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ... ... 127 Computation of direct and overlapping debt._ ....... ._....... ._.... ._....... ... ....... ._.... ._....... ._...... 128 Legal debt margin information.....................................................................................................129 Schedule of revenue bond coverage ...................... ............................. Schedule of TIF revenue bond eoycragc......................................................................................131 Demographic and economic statistics. .... _........ _........ _..... _........ _........ _..... _........ _........ ..132 Principalemployers .... ._....... ._.... ._....... ._....... ._.... ._....... ._....... ._.... ._....... ._....... ._.... ._.133 Full-time equivalent city government employees by function .....................................................134 Operating indicators by function..................................................................................................135 Capital assets by function ................. .......... .................. .......... .................. .......... ................... ..136 Compliance Section Independent auditor's report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing..Smndard%.......................................................................................................................137 Independent auditor's report on compliance for each major federal program and report on internal control over compliance required by the Uniform Guidance .......................................................139 Schedule of expenditures of federal awards.................................................................................141 Notes to the schedule of expenditures of federal awards .._..._._....... ._....... ._..._._....... ._....... 144 Schedule of prior audit findings...................................................................................................145 Schedule of findings and questioned costs.._ .... ._....... ._....... ._.... ._....... ._....... ._.... ._....... ...146 The Compmhensk e Annual Financial Report (CA FR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2020 is submitted herewith in accordance with the provisions of Chapter I I of the Code of Iowa. The City's Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures- rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner dcsigncd to fairly present the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial af'f'airs hast been included. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon a comprehensive Framework of internal control that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provldc reasonable, rather than absolute, assurance that the financial statements will be free of any material misstatement. Bohnsaek & Frommelt, LLP, a firm of independent public accountants has issued an umnodified ("clean') opinion on the City's financial statements for the year ended June 30. 2020. Their opinion is included in the Financial Section of this report. The City is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulation Part 200, Uuloi in Administmtire Requirements, Cos! Jot imiples, and Audit Requirements /or Federal Awards (Uniform Guidance). Information to comply with the Uniform Guidance and "Government Auditing Standards" is included in the Compliance Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Managements Discussion and Analysis (MD&A). This letter of transmittal is designed to complainant the MD&A and should be read in conjunction with it The City's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member scrscs a four-year tern. Elections arc held every two years allowing f'or continuation in office of at least three members at each biennial election. The Council members are elected at large, with three members nominated from specific districts and the remaining four members nominated at large. The Council elects the Mayor from its own members for a two-year term. it t December 8, 2020' CITY OF IOWA CITY To die Citizens, Honorable Mayor, Members of the City Council and City Manager City of Iowa City, Iowa The Compmhensk e Annual Financial Report (CA FR) of the City of Iowa City, Iowa (the City) for the fiscal year ended June 30, 2020 is submitted herewith in accordance with the provisions of Chapter I I of the Code of Iowa. The City's Finance Department prepared this report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures- rest with the City. I believe the information, as presented, is accurate in all material respects and presented in a manner dcsigncd to fairly present the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial af'f'airs hast been included. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon a comprehensive Framework of internal control that it has established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provldc reasonable, rather than absolute, assurance that the financial statements will be free of any material misstatement. Bohnsaek & Frommelt, LLP, a firm of independent public accountants has issued an umnodified ("clean') opinion on the City's financial statements for the year ended June 30. 2020. Their opinion is included in the Financial Section of this report. The City is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulation Part 200, Uuloi in Administmtire Requirements, Cos! Jot imiples, and Audit Requirements /or Federal Awards (Uniform Guidance). Information to comply with the Uniform Guidance and "Government Auditing Standards" is included in the Compliance Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Managements Discussion and Analysis (MD&A). This letter of transmittal is designed to complainant the MD&A and should be read in conjunction with it The City's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member Council; each member scrscs a four-year tern. Elections arc held every two years allowing f'or continuation in office of at least three members at each biennial election. The Council members are elected at large, with three members nominated from specific districts and the remaining four members nominated at large. The Council elects the Mayor from its own members for a two-year term. The City Council is the legislative body and makes all policy determinations for the City through the enactment of ordinances and resolutions. It also adopts a budget to determine how the City wit I obtain and spend its fonds. The Council appoints members of boards, commissions and committees. The City Manager is the chief administrative off icer for the City and is appointed by the City Council. The City Manager implements policy decisions of the City Council and enforces City ordinances. In addition, the City Manager appoints and directly supervises the directors of the City's operating departments and supervises the administration of the City's personnel system. The City Manager s'upervis'es 502 full-time and 48 part-time permanent municipal employees and 124 temporary employees, including a police force of 81 sworn personnel and a fire department of 64 firefighters. The City Clerk is appointed by the City Council and reports to the Council. The City Clerk's Office administers the City government's documentation. City licenses and permits, and provides information from the Municipal Code and City Ordinances to the public and other City departments. The City Clerk's Office is also responsible for distributing and maintaining accurate records of all City Council proceedings. The Clerk supervises 3 full-time employees and I Temporary employee. The City Attorney is also appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the City Attorneys Office, including 4 Assistant City Attorneys and 2 other full-time employees. In addition, the City Attorney acts as Chief Legal Counsel to the City Council, City Manager, the various City departments and staff, and most City commissions, committees and boards. The City provides a full range of services including police and fire protection, construction and maintenance of roads, streets and infrastructure, inspection and licensing functions- a municipal airport, library, recreational activities, and cultural events. The City owns and operates its water supply and distribution system and sewage collection and treatment system with secondary treatment also provided. Virtually the entire City has separate storm and sanitary sewer systems, The City operates a municipal off-street and on-sheet parking system in the downtown area. The City also operates a transit system. The annual budget serves as the foundation for the City's financial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager in October. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the Council for review in December. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than March 15. The appropriated budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City adopts a three-year financial plan that includes both operations and capital improvements. This t rec-year plan permits a more comprehensive review of the City's financial condition, allowing analysis of the current and fixture needs and requirements. During preparation of the plan- careful review is made ofproperty tax levy rates, utility and us'cr fee requirements, ending cash balances by fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and major capital improvement projects. The state requires at least a onc-ycar operating budget. While legal spending control is exercised at a state mandated function level, management control is set at the Department Managerlevel. Encumbrance accounting is utilized in all funds for budgetary control. Appropriations that are not spent lapse at the end oRhe year. Information Useful in Assessing the Government's Economic Condition The City's economic strength is based on the educational sector, medical services, and diversified manufacturing. The University of Iowa and the University of Iowa Hospital and Clinics are the City's largest employers with over 30-000 employees. The University of Iowa had an enrollment in fall 2020 of 31,730 students, which is a decrease of 805 students from 32,535 students in the fall of2019. The academic and research missions oflhe University. along with the health care services provided at its hospitals and clinics, have an extremely positive economic impact on the area. The City also has a significant number of national and international businesses, including Fortune 500 companies: ACT Inc., NCS Pcarson, and Procter & Gamble. in February 2018, Procter & Gamble announced that in approximately two years they would be shifting their beauty care products production from Iowa City to their West Virginia plant. The announced plan was to eventually reduce the workforce from approximately 600 down to 100 employees. This would also impact nearby businesses that produce bottles and labels for this production plant in Iowa City. In May 2020, Procter & Gamble announced that they were going to maintain more employees in Iowa City by maintaining its oral rinse production here and by shifting newer product lines here. In addition, Procter & Gamble has added and is expanding an electric toothbrush plant in Iowa City which is expected to employ several hundred employees; it currently has added approximately 100 employees. The estimated investment in this new facility has been nearly $100 million. Overall, the continued economic development efforts with the Iowa City and Coral viIIe Chambers of Commerce, private interests, the University of Iowa, other surrounding communities, and the Iowa City Area Development Group, have produced positive results with the retention and expansion ofbusinesses. In addition, Iowa's Creative Corridor is a seven -county alliance surrounding Iowa City and has been identified as one of the major growth areas for new business development in the State of Iowa. This Corridor gives employers workforce access to a region uniquely Iowan, founded with a manufacturing heritage, but actively seeking new frontiers and opportunities in information technology, biotechnology and bioprocessing renewable energy, insurance and financial services, advanced manufacturing, and educational services. Continued developments within Iowa City and the region has a favorable impact upon the City's economy and growth. According to the 2010 census. the population of Iowa City is 67,862. This is an increase of 5,672 or 9.1% as compared to the 2000 census. Iowa City population in 2019 is estimated to be 75,149 by the U.S. Census Bureau which is a 10.7% increase over 2010. The rate of new housing construction also increased in comparison to the prior year based on the number of building permits issued. This consisted of 84 new single-fami ly houses and duplexes in 2019 as compared to 114 in 2018; multi -family dwelling units added during fiscal year 2019 was 417, compared to 163 in 2018; and mixed commercial residential developments added 59 dwelling units in 2019 versus 169 residential units in 2018. Altogether these housing additions totaled 560 units valued at $124,362,697 in 2019 versus a total of 446 units valued at $95,524,761 in 2018. In contrast to the increase in residential construction in 2019, the City had a decrease in commercial construction. The value of permits for commercial and utility construction decreased by $10,325,673 to $9,755,586 from 2018 to 2019; however, the value of remodeling permits for residential and commercial properties increased by $24,068,275 to $96,159,999 from 2018 to 2019. Total permits issued in 2019 for all purposes was 606 permits for $231,521,881 which was less than the 2018 total permit issuance of618 permits for$192,814,810. Although there was a decrease in the total number of building permits issued in 2019 versus 2018, the total value of building permits issued in 2019 was higher by 20% than 2018. As a whole, the City's economy continues to grow, established firms continue to prosper and expand, and there are opportunities for growth for new businesses; however, the COVID-19 pandemic has had a substantial short-herin impact on the City's economy. On March 13, 2020, the President of the Unitcd States declared a national emergency in response to the COVID-19 pandemic, and the State of Iowa declared a public health disaster emergency on March 17, 2020, Much of the City of Iowa City, the State of Iowa, and the United States shut down at that time. Due to the impact of the pandemic, the historically low unemployment rate for the City took a dramatic jump up and was at 7.6% for June 2020. This still compared favorably against the State of Iowa at 8.4% and the National rate of 11.1%. Comparably, in June 2019, Iowa City's unemployment rate was 2.2%, the State of Iowa's was 2.8%, and the National rate was 3.7%. The COVID-19 pandemic has had a significant short-term impact on the City of Iowa City; however, the City's unemployment rate has dropped steadily since its peak in April 2020 as the City's economy has started to open backup. The stability of the University of lowa coupled with historically steady employment by the City's multi -sector base of manufacturing and service industries helps to insulate the City from significant negative impacts of economic recessions. The City's property valuations continue to rise which is indicative of the City's relative economic stability. The City is well positioned to recover from the negative economic effects of the CO V ID - 19 pandemic. Major Initiatives The City of Iowa City, with the assistance of Kirkwood Community College, completed the City's Strategic Plan. The strategic planning process involved multiple steps, including gathering input from the general public- front-line City staff, department directors, and the City Council. The Strategic Plan establishes the following organizational priorities, programs, policies, and initiatives: Promote a Strong and Resilient Local feonomv • Undertake a comprehensive ass'es'sment of the current public transit s'ys'tem and implement changes to assure that the service best meets the needs of the entire community • Effectively market and grow the local food economy • Through cooperation with the Iowa City School District, Iowa Workforce Development, Kirkwood Community College, Iowa Worcs, and others, increase opportunities for marginalized populations and low-income individuals to obtain access to skills training and goodjobs • Work with Procter & Gamble and impacted supply chain companies, local economic development organizations, and labor unions to respond effectively to the company's decision to terminate its local production of beauty care products 2. Encourage a Vibrant and Walkable Urban Core • Collaborate with the University of Iowa on its redevelopment of University -owned property located in the Riverfront Cros's'ings District, and on improving the quality, accessibility, and use of the Iowa River Corridor • Preserve important parts of Iowa City's history by considering the designation of additional buildings as historic landmarks, and by considering the creation of a historic preservation district for part of the downtown after consulting with stakeholders • Evaluate existing strategies and consider additional actions to address the need for reinvestment in the city's existing private housing stock 3. Foster Heal thv Neighborhoods throughout the City • Modify the existing Affordable Housing Action Plan to include new strategies to improve the availability and affordability of housing in Iowa City • Embed the -Missing Middle' concept into the City's land development practices by adopting a Form Bussed Codc for at (cast one (preferably two) of our neighborhoods • Ensure the next two budgets contain sufficient funds to make meaningful progress toward achieving the goals of the Bicycle Master Plan and Parks Master Plan • Complete an analysis of traffic accident data and identity actions to improve the safety of our roadways for motorists, bicyclists, and pedestrians 4. Maintain a Solid Financial Foundation • Continue to monitor the impact of the 2013 property tax reform and evaluate alternative revenue sources as determined necessary • Continue to build the City's Emergency Fund • Monitor potential changes to Moody's rating criteria and maintain the City's Aaa bond rating • Continue to reduce the City -s property tax levy • Maintain healthy fiord balances throughout the City's diverse operations 5. Enhance Community Engagement and Intergovernmental Relations • Experiment with innovative ways of engaging with diverse populations in person and on social media • Improve collaborative problem -solving with governmental entities in the region on topics of shared interest • Improve relationships with the executive branch and legislature by reaching out to legislators and other elected officials and working with City lobbyists 6. Promote Environmental Sustainability • Adopt an effective Climate Action and Adaptation Plan and ensure the next two budgets contain sufficient funds to facilitate achieving its goal • Support efforts to increase the reach of the Parks and Recreation Foundation T Advance Social Justice and Racial Equity • Support organizations and efforts that provide services to people experiencing and recovering front trauma and crisis related to mental health and substance abuse • Consider a policy to limit city business to vendors that pay all employees a wage of $10.10 or higher • Explore expanded use of a racial equity toolkit within City government, embedding it within city department and Council levels • Consider elevating hourly staff wages to SIS/hour or more within two years The City Council has also promoted private investment and re-development of other targeted areas throughout the community. The areas that arc em'rends' being focused on include the Riverfront Crossings area, the Downtown District, the Towncrest commercial area, the Riverside Drive commercial area, the 420'" Street Industrial Park- and the Foster Road Urban Renewal Area. The Rivertrront Crossing area is an initiative to revitalize the area south of Iowa City's downtown district. This arca was hard hit by flooding in 2008 and ideas for improving the district were initiated as part of a combined flood mitigation plan. The district features a riverfront park with walking and biking trails, a variety of housing options near shopping, restaurants, a state-of-the-art recital hall and recreational facilities and is a short walk to downtown Iowa City and the University of Iowa campus. This area has seen significant development over the past few years. The Riverfront Crossings area is anchored by a 76.8 acre park that was formerly comprised of Public facilities including the City's north wastewater treatment plant. An $8.5 million hazard mitigation grant from the Slate of Iowa assisted the City in removing the public facilities in this area and then converting the area into a riverfront park and wetland. Construction of phases I through 3 of the park began in 2017 and were completed during the loll of 2019; phase 4 of the park started in 2019 and is expected to be completed in the fall of 2020. On the north side of the Rivcrfront Crossing arca, the University of Iowa recently constructed the Voxman School ofMusic. On the opposite side of the street, the redevelopment of an empty lot was completed in the spring of 2019 which includes it 7-story, mixed-use building with 40 apartment units- retail space on the street level, and office space on the 'second floor. An adjacent building houses a 7-story Elcmcm Hotel by Marriott. The estimated cost of these developments is approximately $40 million. On the back side of the School of Music, a new development has been approved for two new 15 story towers with up to 820 total units and 1,575 beds. This area is approximately one city block in size, will provide right-of-way to re-connect Capitol Street, and has an estimated investment of $200 million. There have also been numerous other public and private developments that have recently been completed in this area including a 12-story, $33 million Hilton Garden Inn, an $102.5 million mixed-use development with a 14-story tower and a 15-story tower that will include the Hyatt Place hotel, apartments, retail space, and office space, and the $50-$60 million redevelopment ora lumber store into a 40,000 square foot brewery, restaurant, and tap room that is flanked by 300+ dwelling units. The City also completed construction of s $15.3 million, 600 space parking garage in April 2017 to service growth in this area, which has 28 new townhomes and an office building constructed around it as its facade. In the Downtown District, the City completed a sheetscape plan for the Central Business District which included lighting, landscaping, parking, utility improvements, art work, and pedestrian amenities. Reconstruction and enhancements for the Washington Street con'idor were completed in 2017 and reconstruction of Black Hawk mini-park and the downtown pedestrian mall arc currently under construction and are nearly complete. Other buildings in the downtown that are undergoing major re -development include the Wilson Building and public space which has been developed into a 15 -story mixed-use development known as the Chauncey; this building has 8 floors of residential units, a 35 unit hotel, two floors of commercialspace, a movie theatre and a bowling alley. The project is estimated to be $49 million. Also being re -developed is the City hall parking lot and neighboring church into 126 residential units, parking, and commercial space. The project is estimated to cost $33.4 million. Both ofthese project's are mostly complete with the exception of some of the commcrcial spaces which are still being remodeled. Also new in 2020, was the addition of a 13,000+ square foot Target in a large downtown store front that had been vacant for years. This store represents a trend away from big box stores on the edees of town and a focus on University related downtown foot haflic. In the Towncrest commercial arra, City staff is working to facilitate redevelopment of key properties that will improve the function and aesthetic appeal of the area. The Towncrest Urban Renewal Area was developed to revitalize the Towncrest commercial district in ways that would serve existing businesses while also drawing new retailers, service providers, and consumers to the area. A major project in the area completed last year was a $7.4 million senior housing complex with 40 units which was built on the former site of a dilapidated commercial structure. Also, completed last year was the consolidation and redevelopment of two older gas stations located on the primary intersection in this district into a new gas station/marketplace. The Riverside Drive commercial area is an area that stretches from the University of Iowa campus to the intersection of Highways I and 6 and is across the river from the Rivcrfront Crossings development area. The development of a 4 -story, $16.1 million multi-family/student housing development in the Riverside Drive arca was completed in late 2016, and adjacent to this development several new retail spaces including a gas station/marketplace and additional multi - residential housing units were also constructed or renovated. The City is developing a streetscape plan for this arca which will include lighting, trails, landscaping, and other amenities and improvements. Construction of the streetscape and intersection improvements began in 2018 and will continue through 2020. Additional strectscape and trail improvements are planned for this area in the future. The 420'" Street Industrial Park is an extension of the Scott Boulevard Industrial Park at the corner of Scott Boulevard and Highway 6. It is a 171 -acre, shovel -ready business park with available sites that include arterial road, highway, and railroad access. Alexander Lumber, previously located in the Rivertront Crossing district, purchased an 112 -acre lot in the Industrial Park to construct a contractor showroom for home and office construction materials. This project has an estimated value of 52.6 million and was completed last year. Their future plans include a commercial/industrial manufacturing facility. In addition to this development, the northern portion of the 420' Street Industrial Park has been designated as a future site for a youth sports complex. The planning phase has been completed on the complex and a true bUITC was added between the two portions of the Industrial Park. The northern section of the Park is located close to the new Hoover Elementary School with a future residential growth in located between the school andthecomplex. Sanitary sewer tobeextended into this area is under design with construction expected to start in 2021. Development of the Foster Road Urban Renewal Area is underway which will convert a 53.29 acre wooded arca north of the Downtown arca and near Interstate 50 into a new residentiaVmulti- residential development with a total estimated cost of approximately $33 million. This area will include construction of a 53 -unit, 55+ senior living facility as well as the construction of an additional 52 townhomes. The project also extends the Foster Road arteiis] from Dubuque So eel to I'mirie Du Chien Road and will provide Low -Middle Income funding through a tax increment district that can be used by the City anywheic to assist with the development of affordable housing. The 55+ senior living facility and the arterial extension were completed during 2020. Long-term Financial Planning It is management's intent to support the major City Council initiatives through budget appropriations, departmental operations, and employee development so that the organization as a whole is moving in the same direction. A significant influence in the preparation of the three-year financial plan (FY2020— FY2022) was the passage of property tax reform (SF295) by the state legislature in 2013. The property tax reform bill had multiple components including a property tax rollback for commercial and industrial properly, which reduced the taxable value of these property types. The bill established a State funded "backfill" to reimburse the City for lost property tax revenues due to the commercial and industrial rollback. The State `backfill" paymentsbegan in fiscal year 2015 but were capped at the fiscal year 2017 levels For years thereafter. The cumulativcr'cduction in commercial and industrial property tax revenues due to this rollback are estimated to be S 17,762,000 between fiscal year 2015 to fiscal year 2024, and the maximum reimbursement firm the State during that time period would be $16,956,000 for a net loss in revenues of $776,000. For fiscal years 2015 through 2020, the City received actual State "backfill" payments for the commercial and industrial rollback totaling $9,322,403. This hill also limited the annual taxable valuation growth ofresidential and agricultural property to 3percent, instead of the previous limit of 4 percent. The impact of this provision is that the taxable percentage of residential property is expected grow at a slower pace. Without this change, the estimated taxable percentage of residential property was estimated lobe 60.55"/o in Fiscal year 2024. With this provision in place, the estimated taxable percentage in fiscal year 2024 is estimated to be 55.11%. a reduction of 5.74"'. Based on the assessed value of residential property in Iowa City, the cumulative loss is estimated to be $22,635,000 from fiscal year 2015 to fiscal year 2024. The City will not receive any money from the State due to lost rcvemre from this provision. SF295 also established a multi -residential property classification that includes mobile home parks, assisted Iivine facilities, and property primarily intended for human habitation. A gradual rollback will be applied to these properties to eventually tax them similarly to residential property, rather than commercial, by fiscal year 2024. The estimated armULOP C loss from fiscal ycar 2015 to fiscal year 2024 is $16,722,000, which will not be reimbursed by the State of Iowa. Fiscal year2017 was the first year for this new class of property, and the estimated lost revenue from this provision in from fiscal ycar2017 to fiscal year2020 was $5,793,450. Due to Ow passage of SF295, the City estimates its net rcvcnuc losses to be $14,550,000 for fiscal years 2015 through 2020. The cumulative net revenue Toss from fiscal years 2015 through 2024 is estimated to be $40,136,000. It is possible that this could affect the City's ability to finance services at cuncut levels without finding otter rovcnue sources or mac efficient ways to del iv at services. The City's long-term financial planning strategy is to promote targeted economic development, diversity its revenue structure, control spending and create efficiencies, and to build adequate reserves and contingencies into its financial structure. In addition, the City is annually reviewing and adjusting its user fees, service charges, and fine structures to try to maintain all of its major enterprise funds with a positive net income alter depreciation but belne capital contributions, transfers, and extraordinary items. The City also continues to strive to reduce the City's property tax levy rate to be competitive for economic do elopmcnt purposes. In Fiscal year2013, the City's property tax levy tate was S17.269 per S1,000 of assessed value. The property tax levy rate has been reduced for seven consecutive years to $15.773 in fiscal year 2021. This has been a reduction of $1.496 per $1,000 of assessed value or 8.66% over that time period. In looking at expenses lorthe FY2020 - FY2022 Financial Plan and FY2021 operating budget, the City will generally experience increased expenditures; however, at a modest pace, with General Fund expenditures and total operating expendi lures growing less than 1% Rom FY2020 to FY2021. Bargaining unit cost -of -living wage increases are approximately 2% to T/o each year. In prior years- the budgeted full-time equivalents (FTE) has generally remained Flat - from 607.66 in FY2015 to 608.18 in FY2020, but in FY2021, the pennanent FTE count increases to 624.08 primarily due to the conversion of temporary workers to permanent part-time or permanent full - nine positions. In addition, public safety pension contribution rates increased slightly in FY21 from 24.41% to 25.31%. The City has averaged a 4.95% increase in its health insurance premium rates over the previous eight years and is expecting a similar rate increase in FY2021 and FY2022. Employee contributions for health insurance are expected to increase in FY2021, and employee contributions, deductibles, and out-of-pocket maximums for health insurance are all expected to increase in FY2022, which should help mitigate the impact to the City's overall premium increase. Although, personnel costs are growing at a faster pace than I %, expenditures for services, supplies, capital oullay, and other financing uses in the General Fund are all projected to decrease in FY2021 and then remain relatively per in FY2022. In balancing the budget for the three-year period, the City attempts to mitigele the growth of costs while continuing to provide high quality services by identifying ways to provide services more efficiently, reviewing and updating existing revenue sources to meet strategic goals, strategically funding now programming and economic development to ensure strong property value growth, providing for necessary improvements to existing infrastructure, and upholding fiscal integrity by maintaining adequate cash reserves. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (the Certificate) to the City of Iowa City, Iowa for its Comprehensive Annual Financial Report for the fiscal year ended lune 30, 2019. The Certificate is the highest form of recognition for excellence in state and local financial reporting. In order to be awarded the Certificate, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both accounting principles generally accepted in the United Slates of America and applicable legal requirements. The Certificate is valid for a period of one year only. The City has received the Certificate for the last Thiry -live consecutive years. I believe our current report continues to confomh to the Certificate requirements and I will submit it to GFOA to determine its eligibility for another certificate. In addition, the City received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated budget beginning July I, 2020. In order to quality for the Distinguished Budget Presentation Award, the City's budget document was j udged to be proficient or outstanding in several categories including policy documentation, financial planning, and organization. This is the ninth consecutive year die City has received this award. Responsibility and Acknowledgments The Department of Finance prepared the Comprehensive Annual Financial Report of the City of Iowa City, Iowa for the fiscal year ended June 30, 2020. The City Council, as required by law, is responsible for the complete and accurate preparation of the City's Comprehensive Annual Financial Report. I believe that the information presented is accurate in all material respects and that this report fairly presents the financial position and results of operations of the various funds of the City. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the City's Finance Department I would like to express my appreciation to all members of the department who assisted and contributed to its preparation. I want to especially recognize the contributions of the As'si'stant Finance Director, Nicole Knudtson- Davies, Assistant Controller, Sara Sproule, Senior Accountants, Taratynne Werthmann and Angie Ogden and Senior Payroll Accountant, Chris Hurlbert. Also, 1 thank the Mayor, members of the City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a dedicated, responsible, and progressive manner. Respectfully submitted, Dennis Boekenstedt Director of Finance Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Iowa City Iowa For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 Executive Director/CEO City of Iowa City Organization Chart Community City Council Airport City Attorney City Manager City Clerk Library Commission Board Airport ity Attorney City Manager City Clerk Library Airport Operations LiCAttorney City Manager Cit Clerk Llbrar O Communications Office y peretlarw Human Resources Library Foundation Human Rights Economic Development Fire Police Administration Administration Emergency Operations Support Services Fire Prevention Field Operations Training Parks & Senior Recreation Center Administration Senior Center Recreation Operations Park Maintenance Administration Cemetery Finance Neighborhood &Public Works Administration Development Services Administration Accounting Engineering Purchasing Administration Streets Revenue Development Services Wastewater Risk Management Neighborhood Services Water Information Technology Services Metropolitan Planning Organization of Johnson County Resource Management Equipment 14 Transportation Services Administration Parking Public Transportation lvlaym Council Member and Mayor Pro Tem Council Member Council Member Council Member Council Member Council Member City Managcr City Clerk City Atlomey City of Iowa City, Iowa Listing of City Officials June 30, 2020 Elected Officials Bruce League Mazahir Salih Pauline Taylor John Thomas Susan Mims Laura Bcreus .Janice Weiner Appointed Officials Geoff Fmin Kellie Fmehling Fleanor DiFes; Department Directors Assistant City Manager Director of Neighborhood Development Services Library Director Director of Public Works Director of Transportation Services Senior Center Coordinator Fire Chief Parks and Recreation Director Director of finance Interim Ctief of Police Ashley Momoe Tracy Hightshoe Elsworth Caiman Ron Knoche Darian Nagle Gamm LaTasha DcLoach .John Grier full Seydell Johnson Dennis Bockenstedt William Campbell Term Expires January 2, 2_022 ,January 2, 2022 January 2, 2024 .January 2,2024 January 2,2021 January 2, 2024 .January 2,2024 Date of Hire November 28, 2011 July 10,2000 March 18. 1996 December 1, 2016 August 27, 2001 January 2, 2019 April 28, 1999 May 21. 2009 July 31,2018 August 10. 1992 January 4, 2016 February 15. 1013 April 27. 1990 Financial Section Tabs Bohnsack & Frommelt LLP Carblmd Public Accou ntmils Independent Auditor's Report To the Honorable Mayor and Members of City Council City of Iowa City, Iowa Iowa City, Iowa Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 17 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United Stales of America require that the management's discussion and analysis, budgetary comparison information, schedule of changes in the City's total OPER liability and related ratios, schedules of the City's proportionate share of the net pension liabilities for pension retirement systems, and schedules of the City's contributions for pension retirement systems on pages 21-31 and 80-93, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements, schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the other information, including the introductory and statistical sections, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Em The combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information of the combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2020 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reportingand __co__mpliance.yn `• y-. /� ���C.LL.., e, Moline, Illinois December 8, 2020 19 (This page left blank intentionally.) 20 Management's Discussion and Analysis As management of the City of Iowa City, we present this narrative overview and analysis of the financial activities ofthe City for the fiscal year ended June 30, 2020. This narrative is intended to be used in conjunction with additional information that is included in the letter of transmittal, which can be found on pages 3 — 12 of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Iowa City exceeded its liabilities and deferred inflows of resources at the close ofthe fiscal year ending June 30, 2020 by $684,143,000 (net position). Of this amount, 598,480,000 (unrestricted net position) may be used to meet the government's ongoing obligations to its citizens and creditors. • The City's total net position increased by $17,782,000 during the fiscal year. Governmental activities increased by $8,430,000 and business -type activities increased by $9,352,000. • At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $91,768,000, an increase of $19,000 in comparison with the prior year. Of this total amount, approximately $34,758,000 or 37.9"/o is unassigned and available for spending at the City's discretion. • At the end of the current fiscal year, the City's unassigned fund balance for the General Fund was $35,369,000 or 67.9% of total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: II government -wide financial statements, 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide Financial Statements: The gonemment-widefrnanrial.vta[ernent.v are designed to provide readers with a broad overview of the City's finances in a manner similar to a private -sector business. The statement of net position presents information on all ofthe City's assets and deferred outflows ofresources liabilities and deferred inflows of resources. with the difference reported as net position. Over lime, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The .statement of actwities presents information showing how the City's net position changed during the most recent fiscal year. All changes in not position am reported as soon as the underlying went giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.- uncollected taxes and eamed but unused vacation leave). Both of the govcmment-wide financial statements di'stinguis'h functions of the City that arc principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-Hpe artiritiev). The governmental activities of the City include Public Safety, Public Worts (roads and traffic controls), Culture and Recreation, Community and Economic Development, General Government, and Interest on long term debt. The bU5111CSS-type activities of dhc City include Airport, Housing Authority, Parking, Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water. The government -wide financial statements may be found on pages 32-35 of this report 21 Fund Financial Statements: A fiord is a grouping of related accounts that is used to maintain control over resource's that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental finds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same function reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -tern infloov and outflonw of spendableresources, as well as on halancesofspendablerevourcee available at the end of the fiscal year. Such information maybe useful in evaluating a government's near-term financing rcquircmcnts and is typically the basis that is used in developing the next annual budeet. Because the focus of governmental funds is narrower than that of the govcmmcnt-widc financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. The City has six major govcmmental funds: General Fund, Other Shared Revenue and Grants Fund, Employee Benefits Fund, Other Construction Fund, Bridge, Street and Traffic Control Construction Fund, and Debt Service Fund. Intonnation is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. Data from all other non -major governmental funds is combined into a single aggregated presentation and are referenced under a single column as "Other Governmental Funds". Individual fund data on each ofthese non - major governmental funds is provided in the form ofcombining statements elsewhere in this report. The City adopts an annual appropriated budget for all governmental funds as required by slate statute. Budget comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate compliance with the adopted budget. The basic governmental funds financial statements can be found on pages 36-39 of this report. Proprietary Funds: The City maintains two different types of proprietary funds. Eiderprtsefunds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its Airport, Housing Authority, Parking, Sanitation, Stormwatcr Collection, Transit, Wastewater Treatment, and Water activities. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City has four Internal Service Funds: Equipment Maintenance, Central Services, Loss Reserve, and Information Technology. Because these s'crvices predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds financial statements provide the same type of information as the government -wide financial statements, only in more detail. Transit, Wastewater Treatment, Water, Sanitation, Smtmwater and Housing Authority are considered to be major funds and are reported individually throughout the report. The other two non -major enterprise funds are grouped together for reporting proposes and listed under a single heading "Other Enterprise Funds". Detailed information for each of the non -major funds is provided in the combining statements on pages 100 — 102. Individual fund data for the Internal Service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 40 42 of this report. Fiduciary s' a Funds: Fiduciary funds used to account for resources held but the benefit of parties outside the go%eminent. Fiduciary funds are not available to support the City's own programs and therefore are not reflected in the government-widc financial statements. Thu City has one fiduciary fund: Project Green, which is maintained as an agency fund. 22 The basic fiduciary funds financial statements can be found on page 43 Notes to Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 44 — 79 of this report. Other Information: The combining statements referred to in the above paragraphs in connection with non - major governmental funds and internal service funds are presented immediately following the notes. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator ofa government's financial position. In the case of the City, as's'ets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $684,143,000 at the close of the fiscal year ended June 30, 2020. By far, the largest portion of the City's net position fullest its investment in capital assets (c.g., land, building, machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt- it should be noted that The resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities. (Wof lo,, cyn N<1 VII June 30.x010 Lmmoomr upnrr N in thwrwdp 23 cow,mmnnInt 071:100.:-1.yn 311311 3019 2030 1019 211311 31119 cwrrnT nn (I 'Tho, p 192519 S uo.619 % 121.004 5 119154 S 113,51_1 J 304s8 Ciff:A anaala .TiA42 241.593 331.450 334910 615,119 594,40! T,,tW ae nvz 41396 449212 45'454 4W04n 919.1'511 9lli198 Ufiscal nwllw'n nl n>uurtv II431 ;R2 2395 2843 I3,116 1530 Lmiu-Ism liubibtiax aNnoiWn19 IIAT43 IIs127 3891 42122 157,294 1v,249 C xmn mud 11111o,Iubiq or 14.I98 I6184 S91I 4.54 10.169 '_0.910 Tort 111 IPy61 12511 44sul 56.648 17,463 1x9,159 Dd[mvl In llmvs ot,,oucc, 69.4$5 62.411 1 I9 891 91150 4,v_ Not I Nal lmc+nn.nl In ,.I....1, 20.004 208028 314.523 301111 534.529 511,139 RUlnvTod 33518 31,919 19549 18 05 5 51,1.36 54894 Ummrviucl 21819 2D.u4 1(.441 124 944A0 9', 14h luo6not r ...it s -9401 s 266,971 x 408]42 b 39'),390 s 684.143 6 6663(11 23 A portion of the City's net position, 551,136,000 or 7.5%, represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net position, 598,480,000 or 14.4%, may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of the fiscal year ended June 30., 2020, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. The following is a more detailed review of FY20's operation. Governmental Activities: Governmental activities increased the City's net position by $8,430,000. The increase in net position of governmental activities is primarily from earnings on investments and a decrease in net transfers out. The total revenues but governmental activities for FY20 were 594,901,000. Governmental activities are primarily funded through taxes, 565,542,000 m-69.1%. and grants and contributions, $16,541,000 or 17.4%. Taxes increased from the prior year by $868,000, mostly due to increased property taxes which was due to an increase in the taxable value of all property. Grants and contributions decreased from prior year by $741,000 due mainly to less state grants for street overlay projects. Expenses for governmental activities totaled $80,084,000. Governmental activities are tracked by function including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and General Government. In FY20, Public Safety accounted for the highest portion of governmental expenses, $29,252,000 or 36.6%, and increased over the prior year due to increases in salaries and benefits. Culture and Recreation expenses of $16,233,000 or 20.3% made up another Targe portion ofthe govcmmcntal expenses and increased over the prior year due mainly to expenditures related to pension and OPEB. Public Works expenses of S 16,071,000 or 20.0% made up the third highest portion of governmental expenses and had a slight decrease in expenses from the prior year. Business -type Activities: Business -type activities increased the City's total net position by 59,352,000. The increase in net position was primarily from the Wastewater Treatment, Water and Stonnwater fiords. Wastewater and Water generated operating income of $1,537.000 and $790,000. respectively. Wastewater also received 52,042,000 from the state for the redevelopment of the land that was the site of the former wastewater treatment plant. All three funds received contributions of infi'astructure assets from developers. Wastewater, Water and Stonnwater received $507,000, 5965,000 and $876,000, respectively. Revenues for business -type activities totaled $62,004,000. The primary revenue source for business -typo activities is charees for services, $41,135,000 or 66.3%. In addition for FY20, the City's business type -activities had a significant portion, $13,911,000 or 22ANO, of their revenues from grants and contributions used to help fund operation and capital projects for business -type activities. The total expenses for business -type activities in FY20 were $59,039,000. Wastewater Treatment rcprescntcd the highest portion of business -type activities, $10,807,000 or 18.3%, with Sanitation, $10,145,000 or 17.2%, Housing Authority, 510,021.000 or 17.0%, Water, $9.302,000 or U.8%, and Transit, $9,041,000 or t5.3%, making up the remainder of the majoiity of business -type activities expenses. 24 Cilt 180119 Cib't Cbangeeim Net Posilion (mnaumsexp meed in l hobelick) Loeurnmental Business -AN The graphs on the following pages represent a breakdown of revenue by source and expenses by program arca for governmental and business -type activities. 25 2020 2019 2020 2019 1020 2019 R.vu Freetown Rev Chiges 6r nervices 5 G191 5 0.219 5 41.135 5 42RG5 S 41,926 1 51,144 OpomNlwelms and wnlnbn(mm 11112 RR5tl 12.911 11,111 27,024 25A91 car nal up wit, and wintriomi„ns 1915 1.971 455 1268 6.440 5,240 Oeowdl Rm iLle' P.e.pnty now, 611146 61,199 - - ensue 617i9 01her 1Hwi 1696 3415 - - l"Y)e 2,nj Omnis and ion rib unonx 1101 Ill mcl nl ospeeilie pntpwu 1.513 1.552 - - 1,511 1,552 EarnIII on invctincie 2585 ].2S] 1.794 2166 4,379 5,42'+ (own nn dlsp osal of cap elassets III 186 14 1 185 197 Olhet 231 3.129 565 %3N Viol 4,161 1 oI:d Femur, 94.901 91.001 61004 60s51 156,905 15],X58 Expenau PuhlI1Ill 29151 26161 - - 19,252 16,26< Pink %kwks 16,071 16,324 - - 1(r0-1 16,324 Gbn,in 11101 mmn I, on 16,311 16,009 10,111 16,009 Ind a�c opin nl c2'„ nm11a.,d 9381 laoz 9,181 16,92' Gcnald grvanmml 1.693 „514 1,693 7,524 Innes) on king -bent debt 1452 1.444 - - 1452 1,444 wmtmmer tamme,n - - 10.801 lou 10001 11,113 wafer - - 9102 9.541 9,102 9,541 xtmmron - - JO 145 16258 10, b O's is Imn11towit It - - 10021 10,170 10,021 10'13() Pa,klno; - - t 014 t 461 1,914 461 Almon 2$11 1,466 1511 1,46b Slommvuto - - 1,149 032 2.198 1 X32 T, w,,11 bent X'S1U 9,041 isiI Total expens¢ 80,084 81,588 59,039 59,57E 139,123 11,164 CTmuie in net beet lione unnstue 14 91 e 11419 2.965 1215 11,782 14,694 3h.nerun o3811 Kill 8381 8,661 Channel in nm portion 8,430 4.158 9352 9.936 17,782 14,694 Net position hngnningotY em 1_66,971 362313 199,190 18)454 666261 651,667 Nd posit en now It Y nir S 25.401 S 266.911 S 40.742 S 399.190 S 694,143 S 666,361 The graphs on the following pages represent a breakdown of revenue by source and expenses by program arca for governmental and business -type activities. 25 Governmental Activities FY2020 Revenue by Source Mise. Charges for Other Taxes Other services 3% 6% Property taxes 66% Grants and - --- Contributions ---- is i Business -Type Activities FY2020 Revenue by Source 26 M isc. Other Grants and 4% Contributions 1 30% Charges for -- services 66'% 26 32,000 30,000 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 22,000 20.000 18,000 16,000 14,000 12,000 10,000 0 � 8,000 6,000 4,000 2,000 0 Public Governmental Activities FY2020 Expenses by Program Area (amounts expressed in thousands) Works ' Communty and Econ Des` de Program Area Business -Type Activities FY2020 Expenses by Program Area (amounts expressed in thousands) Interest Wastmvater I reatment Housing Water Sanitation u ouray Transit Parking jStornowtermp Program Area 27 Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds: The financial reporting focus of the City's got ernmentallunds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may bilis useRd in assessing the City's financing requirements. In particular, unaeslgned fund balance may serve as a useful measure of government's net resources available for spending at the end of the fiscal year. The City implemented GASB Statement No. 54, Fund Balance Reporling and Governmental Fund Tvpe De/dnitumv effective with the .June 30, 2011 financial statements. Fund balances for the govcrnnncmal funds are reported in classifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific proposes for which amounts in those funds can be spent. As of the fiscal year ended June 30, 2020, the City's governmental hinds reported combined ending fund balances of $91,768,000, an increase of 519,000 in comparison with the prior ycar. Of this total amount, $34,758,000 constitutes unassigned fund balance, which is available to use as working capital for the Geneml Fund 'since property tax revenues arc rcccivcelonly twice a ycar and the remainder is available to meet the future needs of the City. The remainder of the fund balance is not available for new spending because of constraints imposed externally by creditors- grantors, contributors, or laws or regulations of other governments m constraints imposed internally on the 'specific purposes for which these amounts can be spent. The restricted fund balance of $50,475,000 or 55.00/0 contains external restraints on its use. The assigned fund balances of $5,708,000 or 6.2% has been identified by the City to be used for specific purposes. The nonspcndablc fund balance is $827,000 or 0.9%, which the City is contractually required to maintain intact or cannot be spent because it is in a nons'pendable format, such as inventories. The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2020, the unassigned fund balance of the General Fund was $35,369,000 while General Fund's total fund balance was $43,373,000. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unas's'igned fund balance represents 67.9% of total General Fund expenditures of $52,078,000, while total fund balance represents 83.3(ft, of that same amount. During the current fiscal year, the fund balance of the City's General Fund increased by $2,755,000. This is due to transfers in from other funds. The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $15,842,000, a increase of $5,025,000. This fund accounts for transactions relating to the acquisition or construction of major streets, bridges, and traffic control facilities. The change in the fund balance is due to bond sales. The fund balance in the Other Construction Fund was $8,763,000, a decrease of $7,861,000. This fund accounts for the construction or replacement of other itMernmental general capital assets, such as administrative buildings, with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. This decrease is mainly due to expenditures forcapital outlay. The coding fund balance of die Debt Service Fund was $9,724,000, an increase of $76,000, all of which is reserved for the payment of debt service (i.e. payment of general obligation principal and interest). The ending fund balance of the Employee Benefits Fund was $3,585,000, a decrease of $370,000 due to an increase in worker's croup claims. The ending fund balance of the Other Shared Revenue and Grants Fund was $5,755,000, an increase of $558,000 due to less Low -Income Housing Tax Credits paid in the current year. 28 Proprietary Funds: The City's proprietary funds provide the same type of information found in the government -wide financial saemebut in more detail. The ending net position of the enterprise funds was $389,423,000, an increase in net position of $7,588,000. This was primarily due to capital contributions of federal and state grants to fund capital improvement projects and transfers of business -type capital assets from governmental capital project funds. Of the enterprise fiends' net position, $314,523,000 is net investment in capital assets. Unrestricted net position totaled $57,342,000, a decrease of $2,326,000 compared to the previous year. The Internal Service finds showed net position totaling 547,810,000 as of .lune 30, 2020, an increase of 54,595,000 primarily due to operating income in the Equipment Reserve Fund to build up reserves for future capital outlay and in the Loss Reserve Fund to build up reserves for futu e health and liability expenses. Budgetary Highlights The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine functional areas as required by state statute, toothy fund or fund type. The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues by $11,481,000 or 7.3 o to a total of $168,949,000 and the expenditure budget by $68,016,000 or 40b% to a Total of 5235,730.,000. These increases were clue primarily to capital projects in governmental and business - type funds because of timing of completion of projects. Capital Assets and Debt Administration Capital Assets: The City's investment in capital assets for its governmental and business -type activities as of ,lune 30, 2020 amounts to $605,327,000, net of accnnulined depreciation. This investment in capital assets, including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater and water systems, and other- in0astruclurc represents the value of reson'ccs utilized to provide services to its citizens. The City's investment in capital assets for the fiscal year ended June 30, 2020 increased by 512,284,000 for governmental activities compared to the prior year and decreased by $3,360,000 for bus'iness- typc activities from the prior year. The following table rcdcets the $605,327.000 investment in capital assets, not of accumulated depreciation. City of lova City§ capital Assess (net ofaepree6non) (mnoaap e.pressed in rhnaeands) Govei note and Business -type Activities Activities 29 2020 2019 21120 2019 2020 2019 Land $ 31.159 s 30,808 S 30.317 $ 30316 $ 61.476 S 01.124 Raildinp 37,467 38,495 63,11811 66513 100549 105,008 Improvemen¢ other than buildings 3.568 3,501 3,635 3.906 7,203 7.407 Machinery and equihina 31051 181118 16,101 13.109 47358 31,127 InfraSrmdom 160.625 150288 214,010 217.233 174.635 367510 Commmtlon in progress 10.001 20.483 4,107 3.744 14.108 24.227 Total $ 273,877 S 261593 S 331,450 $ 334.810 8 605327 S 596.403 29 Major capital asset events during the current fiscal year included the following: Two large construction projects were completed during FY 20. The fust is the Public Works Facility. This project replaces the equipment storage, offices and maintenance facilities for the streets, traffic engineering, storm and sanitary sewer maintenance, refuse collection and equipment divisions. This project had construction in progress balance at the beginning of the ycar of $6,854,000 and currant year expenditures of $5,568,000. The total cost of the project that was capitalized was $12,422,000. The project was funded by an internal loan from the Sanitation Fund, Road Use Tax funds and cash on hand from the General, Water, Sanitation, Stonnwater and Equipment Funds. The otter project is the Pedestrian Mall Reconstruction which had a construction in progress balance at the beginning of the year of $6,606,000 and current ycar expenditures of $2,300,000. The total cost of the pmjcet that was capitalized was $8.906,000 and it was primarily funded through bond sales. This project is part of the downtown s'trectscape master plan. This project updates the Black Hawk mini park and the cast and west wings of the pedestrian mall. The project includes replacing brick pavers, new landscape and lighting, enhanced fountain lighting and a performance stage. Additional information on the City's capital assets can be found in Note 4 to the financial statements. Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $84,225,000. Of this amount, $53,370,000 comprises debt backed by the full faith and credit of the City. $3,106,000 or 5.8% ofthese bonds is debt that will be paid with Tax Increment Financing revenues. $30,855,OOOrepresansrevenue bonds secured solely by specific revenue sources. The City issued $[2,145,000 ofGeneral Obligation bonds during FY20. This incase in debt was offset by the retirement of debt for a net decrease of City's total bonded debt by $3,315,000. The City continues to have the same excellent bond rating on its Gahcml Obligation bonds that it has had for the past several years. This rating is given to those bondsjudged to be of the best quality and carrying the smallest degree of investment risks. The City c bond ratings by Moody's Investors Services, Inc. as of June 30. 2020 were as follows: General obligation bonds Wastewater treatment revenue bonds Waterr revenue bonds Aaa Aa2 Aa2 The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of debt outstanding to 5% of the assessed value of all taxable property in Iowa City. Debt subject to the debt limit includes general obligation debt and revenue bonds issued pursuant to Iowa Code Chapter 403 (tax increment). The current debt limitation for the City is $306,679,000. With outstanding debt applicable to this limit of $94,037,000 we are utilizing 30.7% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. 30 City of Iowa City's Outstanding Debt General Obligation and Revenue Bonds (amounts expressed In thousands) Governmental Business -type Activities Activides 'total 2020 2019 2020 2019 2020 2019 General obligation bonds $ 53,370 $ 51,470 $ - S - $ 53,370 $ 52.470 Revenue bonds 14790 14,930 16,065 20,140 30.855 35,070 Total $ 68,160 $ 67,400 A 16,065 S 20.140 $ 84,225 $ 87,540 The City continues to have the same excellent bond rating on its Gahcml Obligation bonds that it has had for the past several years. This rating is given to those bondsjudged to be of the best quality and carrying the smallest degree of investment risks. The City c bond ratings by Moody's Investors Services, Inc. as of June 30. 2020 were as follows: General obligation bonds Wastewater treatment revenue bonds Waterr revenue bonds Aaa Aa2 Aa2 The City continues to operate well under the State debt capacity debt limitations. State statute limits the amount of debt outstanding to 5% of the assessed value of all taxable property in Iowa City. Debt subject to the debt limit includes general obligation debt and revenue bonds issued pursuant to Iowa Code Chapter 403 (tax increment). The current debt limitation for the City is $306,679,000. With outstanding debt applicable to this limit of $94,037,000 we are utilizing 30.7% of this limit. More detailed information on debt administration is provided in Note 6 of the financial statements. 30 Economic Factors and Next Year's Budget and Rates The City expects continued constraints by the State's property tax formula. The State passed property tax reform, which will negatively affect the City's general operating funds. Without the potential for new revenue sources, like those mentioned above, the City's opportunities for new initiatives are limited. The Council has established a budget where revenues exceed expenditures by $2 million in the General Fund for FY21 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed valuation for FY21 is provided below: General Levy $ 8.100 Debt Service Levy 2.579 Employee Benefits Levy 3.344 Transit Levy 0.950 Liability Insurance Levy 0.290 Library Levy 0.270 Total City Levy $ 15.533 Requests for Information This report is designed to provide a general overview of the City of Iowa City's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report, or requests for additional financial information should be addressed To City of Iowa City, Finance Department. 410 East Washington Street, Iowa City, IA, 52240. 31 City of Iowa City, town Statement of Net Position ,Iune30, 2020 (amounts expressed in thousands) Assets Equity In pooled cash and investments Rmobahlcs Property laz Accotmts and unbilled usage hitene t Notes Internal balances Due from other gavel iments Pi spuds and other asocial Inventories Avers held for resale besoicte! asset. Pyaity In pooled cash and 1uscameras Centel assets: Land and construction in progress Other capital assets (net ofaecumulated depreciation) Total assets Deferred Outflows of Resources Pension related deferred outnoaa OPFR related deterred oilnoss Total deferred ouHlows of resrliveS I Into I in" Accounts payable Contracts payable Arm nod liabilities Interest payable Deposils Advances train granmrs Due to other governments Imatured revenue Noncurrent liabilities: Due within one year: Employee vested benefits Hoods payable D lrs lin more than one year: Employee vested benefits Nov pension liability Other post employment henetils liability Notes payable Bonds payuble Landfill closure post -closure liability Total liabilities Gmcrnmentel Businesstype Aclivities Activities Tolal $ 113,883 $ 59544 S 173,427 66,479 - 66.499 707 3,595 4,302 547 328 875 5,300 357 5,657 (22,551) 22,551 - Z125 3,462 10,587 13 - 13 793 743 1,536 480 - 480 19,743 30,414 to, 107 41,160 232,717 1,351 34424 297,026 3,725 75,584 529,743 5.012 466,396 612 452,454 158 918,850 423 I0L119 1,890 11,009 1,302 495 1,797 11421 2385 13,806 3,494 1,351 4,845 3,725 1287 5.012 5,558 612 6,170 158 265 423 1_22 2,216 3,438 3 10,660 3 38 43 81 197 192 Is25 496 2,021 11,119 4,544 15 6h3 1,206 366 1,572 39,796 7,850 47,646 6_53 2,374 8,627 211 - 211 58,653 11241 70,894 10,660 10,600 $ 132,961 S 44,502 S 177.463 (continued) 32 City of Iowa City, Iowa Statement of Net Position (continued) June 30, 2020 (amounts expressed in thousands) rite. toune tal Business type Activities Activities Toilet Deferred lotions of resources Pension related deferred inflows $ 3,045 S 1,240 S 4,285 OPFB related deferred i n flows sun 213 993 Delerred umounl on refunding - 142 142 Succeeding year property taxes Total deferred inflows afresourecs Net position Net investment in capital assets Restricted for or be Employee benefits Capital projects: Expendable isone%tendablc Debt service Police Othocar Poses I xpendahle Nonexpendable Bond ordinance State statute Failure intprovemrnu Gram agreement Unresh'icted Total net position 65,850 65,850 64455 1595 71,050 220004 314,523 534,527 3,875 - 3,875 11464 - 11,464 ns - 279 9,590 - 9,590 294 - 294 4,552 - 4,552 69 - 69 9,714 9,714 - 4,321 4,322 100 100 3,456 3,422 6,878 21,819 76,661 95,480 5 275,401 S 408,742 S 684,143 The notes to the financial saahno ente are an inmgialp mt ftltis statement. 33 34 Fu 2044 % 60rcmmcmel oe11tto, '_41 N,hh,,Arn.- $ 2937 mmnc or2, 16.0,1 COIW, and ¢unnliem I6iU Can Anda ilc dmclopmun )]NS Gn rvS 11 n 269) Inlerai on l o.IS I,,,, debl LST Tot it gun mmcnnl yln niu %0.UN4 cn of m„0 cit'. m„0 SevremeAt ofAIll ,fties Fonba Veur EnJN how 30.2020 (mimwm aple,,ed to lLoumJs1 "'I R11011111 OPexlio CflFIRI Cb^4T (irvoaaoJ (Iwdvmid oes,,. t,, bIo11001 e T0110111 % 4A3O n 2044 % - 1,713 '_41 6N 07 50% 16 r% S9 1564 — L551 5 91 $unitaJ ml 10, 14S 10.193 6.791 1:113 Iy 15 e, Noa. 4,IUN - 1,713 1 113 6N \4m 'SJI,ni l rrunneul O'NO] Cis] - (61]) r550 Wma 9302 IROi% 2 91 $unitaJ ml 10, 14S 10.193 20 - Hoiu1114nuJiodry 11,014 3,44 4 N]I - ,ig SOH 4.154 - Ai,emPLL, Siiman I'S $71 196 134 nma m, 1IN 2141 1,]30 - 8]6 1 TratIil 041 L%@ r0rvl bn.;0,0,.ImeA,:m;J.. 9St,9 .v m0 4,13. 1911 11 911 4s2, Tocol A 119123 $ 4''.9'O A 'IIRS S 6.140 (In emLx Pmpenp aw,,1,, zd for generrl purPu`e+ floret Ill ellax Cuua 6,I eleetde me OJIR, "JOIIS, Ciry Alder IdbW , ... ialntell la SIl'niP�+^ ri L 111 1111 1 I I f -ir� nein M1Gattlloneoos T :,Ona,n 4Jlnl tonal re.nwe, And ImnI ( h 111 mnl 111)ar0n Net Irudlmn beg,tAng 0I ea, Not [Neaten cndafyu Tb,ummII, IS, 11,I l(11 rvon, urenu"I un um'gml Vni'[ I rhh nwemew. 35 N11(Lpl, )Rnauswul 141AlILL” Ill Na Pen Ilion (immio.rnlW BmML111 ypc I1 i,nnn dvl rvuux TOIW S 1277281 % S 1277281 14.'3'1 - 14.'3'1 11SAS 11 11SAS 11 17]601 — 17]601 161371 161371 11.0.21 11.0.21 15%2651 15%2651 - 4,ION 4,IUN - 1,713 1 113 6N IJ 134 - (61]) (65]) - 11,11111 1111 40N JUN (4,112) 14.1321 15%1651 51_ 157.7131 6'146 - 6'146 I,Il I,Il 677 677 884 884 1513 ,513 2s89 uw 4,379 III 74 INS 1,331 965 1196 JN,I 6,187 66,605 8,X26 -9s1, 8410 9,111 11712 266,971 300,190 666161 5 271401 $ 409,742 5 6A4,141 T...... f P ltb i ... L.. invvnWonu uv.L,W COL ,p4tr^^o/ea, a.uoxau 36 cx. J lm.. arc. I... Il Shl't QI,10 COCO sm=m1 a.,fit UL (me. QI,U id n1.d I ... (WILL xn .md Dnrlw== Di cmvmmLnWW Grn.mJ it, N.nenla SLI 'Lo Fund, Toil If xod od u,h wid tm.cu- S 4c'1 K J 1 1,4" 1 x414 4 RIS 5 9_.. 1 1,4Q S ii obluc PROPLI11 ill Lift 1Rll I to _ 1IyF2 ,. 66 41q I PiPilil... C: e 61 11 CiP Ili_ Iy .p,o lup Dul(tilt mho It ... din _ILL dal Atlmncn m mlm fuuA L,_ Due if who y[¢ N➢ morn a6 L-4 L L_,. - ..7 111 11111111TIC -,1 PlICHII 1111.1 14 11 RLLHLILII 111C, l IIIIII IAl Ih&oW Influx, uBesuu.... rM F and Ilu... es S L.x• > C, , S I S n> ILI (1111111 1?R DIP W PILL' tt 4X )d L bl %Lbld Lmlmmc Dl I,17 1- - - - - 11 DI Ith"IN 'It 1110111101 u_ - . _ m1, o. . Tum l d,I Im d l mI ma'I I"I ma 4Q.. Pq Few bmmP„L CIIL me Wia.vd Rl: 1 147 a ,.n, x.. huz 9 '4V £30 A ... vIJ TOM_ _ - _ I'll 11 I.A11111111, Ill Hilln' rvuW a tL 'AIIII s )o.Hw s I b I X]10 1 um. P .Mn_ b 20 £n ; IAKO . 116.161 T...... f P ltb i ... L.. invvnWonu uv.L,W COL ,p4tr^^o/ea, a.uoxau 36 Cit. of Iowa an, mwa Reconciliation of the Balance sheet of the Governmental Funds, to the Statement of Net Position lime 30, 2020 (cereals expressed in thousands) total gmxrinterest l fund beIan cas $ 91,768 Amounts refusal for governmental activities in the statement of net position are different because Imemal service funds are used by management to chane the costs of ceiton activities to individual fund. The assets and liabilities ofthe imemaI service hinds ata included in 6oveminenr I activities in the statement of net position 47.810 other long-term assets are nm scar Islet e w pay for currant period expendl three and therefore are unavailable in the hinds- Grants and other reoei vables- Fal a1 but unowilable 5,749 fapinl assets used in has ninternal sell al es; arc not sort can financial Iatria cis and beano aa e not reposed is the funds_ 259,408 Persian and OPER related deferred outflows of resources and deferred intlmvs of resources are not due and payable in the wi rent period and therefore are not reposed in the funds. Deferred ouslox7 of resources 5 11,040 Defer red inflows of resources (3,374) 7,666 Net pension Nabili(its re not due and payahle in the unrest pmol and Iherelore are not reposed in the hods_ (38515) Accrued compensated absences are not due and payahle in the current period and therefore are not reported in the funds- (2595) Accrued Post rntployment benefit liabilities are not due and payable in the cameo period and chat store at not Ieporled in the funds. (5,930) Bonds payable are not due and payable In the cunent period and therefore are not reposed in the finds. (69,772) Notes payable are not due and payable in the einem period and therefore are not reposed in the funds. (21 1) Accrued interest on bonds 1158) Internal Moser Bae to ategration 01 Fraud service funds (14319) Total net position ofgovmmcmet activities S 25.401 The notes to the hunts (al.smtcauses are an integral przrt of she es,gatemem. 37 Citi- o(lomt Cit%, hnea Slainment Ol' Renenues. Eapendimres, and Chi in Fund Balances Gui nnienmi FundN Rm The, Yva Elided mBe 30.2020 (amoann eeplc, ed In ieoulandv) Epi i irnmv sin om,ln.. BedeC omen .Iw_uu I. 26 shaM1d h6l, u,,k, I 11mw 5911 Will 93 Ln - Raw and 11 E.pl m— _. 111.1 Ems ..,111., c.I. ,1111 dI ( I....... TedovlpeN I,h1N TI? Ran'111f5 ]14 - - Fl] imsJ umvnmrnl 62 ]4 iueo S IN IN,% _ f L - S - f - Y II_i< n -]]2 61 142 Pii."I"I 109 1.116 - - 2NO 16'9 11:601 Im 6 Dim, Ind Ili hot) �BOum Ilt) W@IPn0n� undangmy 1 lag 1- T P 24'N 241 hit 1111111 1 %T,t:d ,7 -:OE 1 441P rocouu 44101 4NO Esema LtlJlei rngl nl n+%Ton 1111 1'011 S. 11111 Epi i irnmv I. 26 IN 6)7 h6l, u,,k, '19 5911 93 Ln - - Ih5N6 dI ( I....... TedovlpeN I,h1N TI? ]14 - - Fl] imsJ umvnmrnl 62 ]4 - 3x1 X - 64 DO, Pii."I"I - - - - - I I Im 6 1 641 �BOum 16] T P 24'N Esema LtlJlei rngl nl n+%Ton 1111 ON hi b 119 Nnunen 4eq ILL "II In T0-1 . "I .p - I'.I Sulo"I"Inml:usu III _ I II 11.1uIuvnu of 11?SIN Tiunlm� - IiONO life 21P6 6 Net ' II J11)) 1141) .4 I. wwas O %.. 11111 1 .aid0 ,SEN III 4Y1I LY ..) FVI 6!" — ewW BIIIIIII. Be9InIIIn� 40 619 1 1197 1,nz, lI 6A OZIF I N4, 4 no 91A9 F dBa"LlI. Ending 4,-1 Tb: nnmuu ilmll^^ry 111111111,111001,1111=lel? lnvywlI'm '[ f lhh nmemroil . 38 CRY of Iowa City, Iowa Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2020 (amounts expressed in thousands) Net change in land balances - total governmental funds S 19 Amounts reported for govemntentul activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the asset. Capital outlays and contributed capital assets exceeded depreciation expense in the current year as follows: Expenditures for capital assets $ 17.749 Tansfers of capital assets no) ifrran enterprise Ponds - net (103) Capitol assets contributed 956 Depreciation expense (7,618) 10,984 Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the change in fund balance. In the statement or net position, however, issuing debt increases long-term liabilities and does not affect the statement ofactivities. Similarly, repayment ofprincipal is an expenditure in the governmemul funds but reduces the liability in the statement of net position. Debt issued (12,145) Premium on bonds issued (927) Repayment of debt 11,385 Amortization of premium 220 (1,467) Because some revenues will not be collected for several months after the Cites year end, they arc not considered available revenues in the governmental hands. (12) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in ga iumnental funds: Change in accrued compensated absences (399) Pension expense (3,158) Change in accrued post employment benefit liability (339) Change in accrued interest on debt (24) In the statement of activities, only tire gain on the sale of the capital asset is recognized, whereas in the governmental funds, the proceeds from the sale increased financial icou rees. Thus, the change in net position differs hour the change in fund balance by the cost of the capital asset sold. (5) Internal soviet Ponds are used by management to charge the cost of certain activitics to individual funds. The net revenue of certain ac5vities of internal service funds is reported with gov mmerial activities. 2,831 Change in net position of governmental activities S 8,430 The notes to the financial statementsate on integral pant a) this statement. 39 I91 II P...t.n rv..m lu k, ill. sly I,mw..l ..P ..,w 1, 119wnnn.l 9, lnlw 13 ..Jl P. nm,nI.. ,avdLlr I Oil - NIO1 fillON n IIIII Lilt 11, ON I at mmp," 'Irl ILI CO'I,., 6ittl% Ill PlIttl911fid mil,unoll __L ) It'll M II S 129e_ 1 'A67 N 46:2 N 3,142 > LI,q44 N JXJ51 ION llum mho um Ctilli _`N49 1 1 _ =1 nz _ Ill111111111 1,4 111 it 15 TmolII n{ lxl l %, , yuuy 'u. povlal wdvnd 3111 . Iv.n 41ti 1 4, M 44'1 Ill 10,414- 'I'LLI'll IN All' J_31 4,111 t 1piW ui L,nd 111 1,9 6 Ill 2 _164 ,Oa Li 1 1,4x4 _ DuilJinry, ISJ SV J6Y5x 2-0111 SJIi+ - tilt, J2105 WJ21 NI Idx) Ilnpmwnen tt�IM10 llnn boil Jinp �?ql 1I!` 51, - J PI3 IU_ - p0 1 (N9(Ill 44M491 (if 679) I1,1LUCE10I III PI it CIN I `I(` I.(L iutJ ..w NO 15511 inlol L11111 JJ 1_)0:2 1119 4'_154 Wv] 41A44, D,f,r,.J 0,109.,, If x,w11,.... mmnu.. C ,Int nbn;na >vnnntt p,, nhl, 419 14V IN 1 4n If , :,1 61 n,1MmnM, 140 It 1 1 .61 406 . Dul 11 11,11 full, _ _ _I it III_ Duou mba mm mmsu I} _If 3 UomimIl mvwc - - - - - 11- - 0- - I 114 111vmblc - 1 L 106 t 9nJ.d dubs Pa oP uuninanlnd t dit,p%ablf pm vi mvud ',184uNN1 1,660- - - 4,11 Iiu hI IItq It It 11 CIIIIA NONN1111. I� P I vur u.d ,..1s: D,D,ll.. - - Lue m - + z 116 - ed.,mu,r �n „mx mnd. - - - - - - L144 J'4 LOJ - finPlipccnw4KwIffhkLIL PY it b0 n ] l 1! :66 01 P.O+blo Pu oP uuw nanlnJ II"I"I r, cIP^ll 111FILL111111 b.,.lulLwbili,Y I+i 49. 11 J }u IunJLlldumm pjf(ItNffmlaffft5' inml nuncnmm, IWGSos a Mf 4-/M I,.7P 131 224] ON I oil inial lIll 3 It 10I 12, WH 11141 1JS'H 111,1(111 md J.4N nllvne ,. 5 _ _ _ J @HoL,unnmmn ullnduLL iuul JSrnud l nlluv 9l l 1 ILI 346 2t, 1 v4 I1 1SO5 1:1 PlIfinn L (1FJOUr1JI1pl1%C1n111, 100 1411) Hrn,ia,d b, I 1111 111 CinCLI _ LhuulomcJ 4 1-, K]12 13"IM_ 41IN 1110 I_ID if I9m1 Ill, P^,i,ion Y _ It 41 fin 'Jimmau,, on ull.m ,hp. widm..m0 9vnmh . vm1... v9 Iu"" wit m udm iac Fni Ov iinlbmi9mfh pc u It h1 uaivilio S JOb.IJ' Th, .,..,d,.,.mdm.6n.... .,;m.'m.ttl` m. n9 t, f, flit n,, mvn,a„ILI""” 40 The rime, rn an, fn mdN.rnuunur. me rzrz olloo0Pat I "/slur novae now 41 ( its of lora Cita, -mea State men t of Rest course Expenses and C'hamal in Fund Net Position Proprietors Funds For the Year Ended fall 30, ,020 bananas expressed In Nousnnds) (w sal Business ope Antena-InneiTrise Rends ACYrvlties fall, Internal Isdac'vci Hmuing Enterprise Smile na...i 1 Trcmnenl Is Snnierian Smrmuznr Aute Dumb Tool Funds Operating Revenues: Chargers for sen4ces S Is02 $ 12,311 $10048 $10191 $ 1,730 $ 290 S 4,'25 $41,135 X 21,646 Miceelanmus 114 116 49 00`4 s I10 65 563 I6 Total operating revenues 1,916 12473 bi 1039- 1,735 390 4.790 41.698 31.663 Operadna Expenses: Personal sere las 4.499 "ONO 3,676 1754 313 999 1,907 1S 21g 2,486 Cnmmndldes 193 1015 IJ@ all r31 IS 955 4,543 _ '_21 Solus and ehargcs 1822 22_11 19731 6011 321 sal 1946 24.217 11949 8,114 6,366 6,752 10.136 871 9931 4,609 46,978 16.656 DcPmdatinn 1,038 4,570 2.555 832 1333 116 2.262 12.695 2,051 Two l oV., an ng exparoie, 9,142 10936 930- 10968 2,203 10,047 7,070 59.673 I870- Opernting all doss) (7,-26) 1531 190 (671) (469) (9,657) (-,-80) (19975) ',955 Sonoyerming Revenues (Expenses): Carl bill On diepreal of c'upitnl asset - 41 10 23 - - (159) (115) __ m4urome leeon2l.e, - Operating giants 11w 8 _ 20 - 9.975 899 13,911 1 1mem.dnc me 114 436 300 645 37 101 161 1,794 713 motor cxpa¢c (25) (1-4) [3451 (544) Total n0napealinatVolokxel 332_1 460 138 688 1 9,978 516 15,049 766 Income (loss) before capital contnbutionx and transfers (Fixi 1,99- 929 11 (4317 321 11.-54) 12,9271 31-31 Capital contributions - 1,550 1040 904 - U4 4,628 Transfers in 3,676 501 117 I82 -27 64 100 6,473 940 Tmnstue out (224) (141) (150) (50) QI) 1596) 11 Change in net position (329) 4,f30 2,544 49 1,700 335 (1,541) 1,588 4,595 Net Position, Beginning 21352 142,501 74.401 29,1 If 53.963 9.515 51,053 4i 215 Net Position, Ending 5 11.091 5 147,331 1 '1 $ 55,563 $ 9,950 5 49,50 A 47.810 Adjustmanttu rt)cctthamnsolldodon ofinmmolsarvicc fund'dnivitics added to carnation a IEmb 1.764 Change in net position ofbaroness -tvpe octivitin $ 9,352 The rime, rn an, fn mdN.rnuunur. me rzrz olloo0Pat I "/slur novae now 41 .AUI to art Ash fluos it um itod lop pj�krating aLth III I U2 kill 119 ilk, Ovs 42 I U2 kill 119 ilk, Ovs L1111113111 ill' 01 1JAH A U1111 0 ILI Pill LJOLOO '11-i , Ill 11,11 Uj '11 IXIJ "All 11 41 42 I U2 kill 119 ilk, Ovs L1111113111 ill' 01 1JAH A U1111 0 42 City of Iowa City, Iowa Statement of Fiduciary Assets and Liabilities June 30, 2020 (amounts expressed in thousands) Assets Equity in pooled cash and investments Total assets Liabilities Accounts payable Due to agency Total liabilities Agency Funds $ 90 $ 90 $ 10 80 $ 90 The notes to the,inancial statements m'e an integral part of rids statement. 43 44 City of Iowa City, Iowa Notes to Financial Statements June 30, 2020 1. Accounting Policies The City of Iowa City, Iowa, (the City) was incorporated April 6, 1853, and operates under the Council/Manager form of government. The City provides a broad range of services to its citizens including general government, public safety, streets, put ks, and cultural facilities. It also operates an airport, a mass transportation system, parking facilities, water treatment, wastewater treatment, stone water collection, sanitation collection and dis'pos'al (including landfill operations) and a housing authority. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of Amcrica (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City arc described below. The Reporting Entity For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards, commissions, and authorities. The City has also considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City arc such that exclusion would cause the City's Financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential fin r the organization to provide specific benefits to or impose specific financial burdens on the City. There were no component units required to be included. Government -Wide and Fund Financial Statements The government -wick: financial statements (i.e., the Stau:memt of Net Position and the Statement of Activities) report information on all of the non -fiduciary activities of the primary government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from huvinevs-type activitiev, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segnncnt. Program revenuc,v include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) giants and contributions that are restricted to mecling the operational Di eapital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effect of inter -fund activity has been eliminated Fort the government -wide financial statements. Exceptions to this general rule are charges between the City's water- and sewer function and various other functions ofthe government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 45 Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Description of Funds These financial statements include all funds owned m administered by the City or for which the City acts as custodian. The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The fund categories are governmental, proprietary, and fiduciary. Each fund is accounted for by providing a separate set of self balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues, and expenditures or expenses, as appropriate. The individual funds account for the governmental resources allocated to them for the purpose of cart on specific activities in accordance with laws, regulations, or other restrictions. Basis of Accounting The accounting and financial reporting incontinent applied to a fund is determined by its "measurement focus" The government -wide financial statements and proprietary funds are accounted for on the Flow of economic resources measurement focus and use the accrual basis ofaccounting. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses me recorded at the time liabilities are incurred. All governmental funds are accounted for using a current financial resources measurement focus, which generally includes only current assets and current liabilities on the balance sheet. The modified accrual basis ofaccounting is used for these funds. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims andjudgments, are recorded only when payment is due. The City reports the following major governmental funds: The Genera/ Burd is the City's primary operating fiord It accounts for all financial resources of the general go%eminent, except those required to be accounted for in another fund. The Other Shared Revennc and Grants Fund is used to account for revenue from various sources, primarily road use tax monies from the State of Iowa and reimbursable programs funded by federal and state grants. The Ernplooce Benefits Fund is used to account for the employee benefits related to those employees who are paid through gotemmanal fund types, which are funded by a separate property tax levy. The Other Consn'action Fuud accounts for the construction or replacement of other City general fixed assets, such as administrative buildings with various funding sources, including general obligation bonds, intergovernmental revenues, and contributions. The Bridge. Street, and Trafjfc Control Construction Fund accounts for the construction or replacement of infrastructure fixed assets, such as streets, brid_ees, dams, sidewalks, and lighting systems. 46 The Debt Sereice Fund accounts for the accumulation of resources for the payment of general long- term debt principal, interest, and related costs. The City reports the following major proprietary funds: The Transit Fund is used to account for the operation and maintenance of the public transportation system. The Waoeuther Treatment Fend is used to account for the operation and maintenance of the wastewater treatment fncility and sanitary sewer system. The Water Fund is used to account for the operation and maintenance of the water system. The Sanitation Fund is used to account for the operation and maintenance of the solid waste collection system and landfill. The Stannrater And is used to account for the operation and maintenance of the stormwatcr utility system. The Housing Authnritr Fund is used to account for the operations and activities of the City's low and moderate income housing ass'is'tance and public housing programs. The City has two nonmajor enterprise funds, the Airport Fund is used to account for the operation and maintenance of the airport facility and the Parking Fund is used to account for the operation and maintenance of the `on" and `off' street public parking facilities. Additionally, the City reports internal service funds to account for goods and services provided by one department to other City departments on a cost reimbursement basis. The funds in this category are the Equipment Mainteriarce Fund. Cenn'al Services Find. Lose Reserve Fund, and the bifa'mariar Technology Fund. The City also reports fiduciary funds which are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one fiduciary fund which is maintained as an agency fund, with no attempt to create an ongoing fund balance. The fund in this category is Project Green, which accounts for donations that are received to plant and develop yards and lawns, both public and private, within Iowa City. proprietary funds distinguish operating revenues and expenses from nor -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expens'es, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. 47 Uses of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and as's'umptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the reporting period. Actual results could differ Rom these estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of other post employment bcncfit obligation, net pension liability, landfill closure and post -closure care costs, total capacity of the landfill at closure, and calculation of the costs of claims incurred, but not reported. Cash and Investments The City maintains one primary demand deposit account through which the majority of its cash resources are proces's'ed Substantially all investment activity is carried on by the City in an investment pool, except for those funds required to maintain their investments separately. The earnings on the pooled investments are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the Investment Company Act of 1940. For the purpose of the Statement of Cash Flows, restricted and non -restricted investments with a maturity of three months or less when purchased are considered cash equivalents. Receivables and Revenue Recognition Property tax nncivable is recognized in govcmmernal funds on the levy or lice date, which is the date that the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent Property tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor by March U of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded, it will not be recognized as revenue until the year for which it is levied. Federal and state grants are recorded as receivables and the revenue is recognized during the period in which the City fulfills the requirements for receiving the grant awards, as long as the susceptible to accrual criteria are met. Income from investments in all fund types and from charges for services in proprietary fund types is recognized when earned. Licenses and permits, fines and forfeitures, foes and refunds, charges for services (in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in cash because they arc generally not measurable until actually received. Inventories Inventories are recognized only in those funds in which they are material to the extent of affecting operations. For the City, these arc the Other Shared Revenue and Grants Fund, Transit Fund, Water Fund, and the Equipment Maintenance Fund. Inventories of materials and supplies are determined by actual count and priced on the FIFO method in the Other Shared Revenue and Giants Fund and the average cost method for the Transit, Water and Equipment Maintenance Fund. 48 Capital Assets Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges, water mains, and similar items), are reported in the applicable governmental or business -type activities columns in the govcmmcnt-wide financial statements. The City follows the policy of not requiring capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for buildings and improvement,, and $5,000 for equipment assets. Such assets are recorded at original purchase cost or at acquisition value at the date of donation when received as donated properties. Depreciation is computed using the straight-line method over the following estimated uschd lives: Infrastructure 3 — 100 years Buildings and structures 20-50 years Improvements other than buildings 10-50 years Vehicles 2 20 years Other equipment 3 — 30 years Deferred Outflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then. Deferred outflows of resources consist of unrecognized items not yet charged to pension and OPEB expense and contributions from the employer after the measurement date but before the end of the employer's reporting period. Bond Premiums and Discounts Debt issued at a premium or discount is recorded net of the unamortized premium or discount. In the governmental funds, premiums and discounts are recorded entirely as other financing sources or uses in the year of issuance In the proprietary funds and the govcmmcnt-wide statements, they are amortized over the life of the bonds. Compensated Absences Permanent City employees accumulate vacation and sick leave hours lot Subsequent use or for payment upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the aceunmdated sick leave at the time of termination on the basis of the employee's then effcotivc hourly base salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after June21), 1985, are not eliall ble for payment of accumulated sick leave upon termination, death, or retirement. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System (Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on the same basis as they are reported by the Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terns. Investments are reported at fair value. Landfill Closing Costs Costs expected to be incurred in ultimately closing the present landfill site are being systematically provided for through charges to expense over the estimated useful life of the landfill on the basis of capacity used (see Note 8). 49 Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues are measurable, they are not available, Available means collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources in the governmental fund Financial statements represent the amount of assets that have been recognized, but the related revenue has not been recognized since the assets are not collected within the current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of resources Consist of property tax receivable, grants receivable and other receivables. Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax receivable that will not be recognized as revenue until the year for which they are levied, the difference in the carrying value of refunded debt and it's acquisition price and the unamortized portion of pension and OPBB related items. Budgetary and Legal Appropriation and .Amendment Policies The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, total] funds except internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan. This budget is adopted on or before March 15 of each year w become effective July I, and constitutes the City's appropriation for each program and purpose specified therein until amended. The adopted budget must include the following: a. Expenditures for each function: Public safety Public works Health and social services Culture and recreation Community and economic development General government Debt service Capital projects Business-type/enterprise b. The amount to be raised by property taxation c. Income from sources other than properly laxation d. Transfers in and transfers out The legal level of control (the leve] at which expenditures may not legally exceed appropriations) N the function level for all funds combined, rather than at the individual fund level. Management can transfer appropriations within a function, within a fund type, and between fund types, without the approval of the governing body so long as the total budget by function area will not be exceeded. It is necessary. therefore, to aggregate the expenditures of the budgeted activities within the governmental fund types with the expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The City's budget for revenue focuses on aggregated totals by revenue source. The City formally adopts budgets for several funds that are not required by state law to be included in the annual function budget. Annual operating budgets are adopted for the internal service funds for management control purposes. Such budgets, however, are not legally required to be adopted under state statutes. 50 A City budget for the current fiscal year may be amended for any of the following purposes as prescribed by Iowa statute: a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on hand at the end ofthe preceding fiscal year. b. To permit the appropriation and expenditure of amounts anticipated being available from sources other than property laxation. c. To permit transfers between funds. d. To permit transfers between functions. A budget amendment must be prepared and adopted in the same manner as the original budget. The City's budget was amended as prescribed, and the effects of those amendments are shown in the accompanying budgetary comparison schedule. The original budget was increased by $42,985,024 in revenues and other financing sources and by $97,885,699 in expenditures and other financing uses. Appropriations, as adopted or amended, lapse at the end of the fiscal year. As allowed by GASB Statement No. 41, Budgetary Comparison Schedules— Perspective Differences, the City presents budgetary comparison schedules as required supplementary information based on the program Sit While of nine functional areas as required by state statute for its legally adopted budget. Restricted .Assets Assets within the individual funds, which can be designated by the City Council for any use within the fund's purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets. Liabilities, which are payable from restricted as's'ets, are classified as such. Classification of Fund Balances Fund balances for the governmental funds are reported in classifications based on the nature ofany limitations requiring the use of resources for spceific purposes (sce Notc 10). 2. Cash and Pooled Investments The City's deposits in banks at June 30, 2020 were entirely covered or collateralized by federal depository insurance, national credit union administration, letters of credit hold by the City or by the State Sinking Fund in accordance with Chapter 12C ofthe Code of Iowa. This chapter provides for additional assessments against the depositories to insure there wi II be no loss of public funds. The City is authorized by statute to invest public funds in obligations ofthe United States government, its agencies and instrumentalities: certificates of deposit orothcr evidences of deposit at federally insuredIowa depository, institutions approved by City Council and secured pursuant to the limitations set forth in Chapter 12C ofthe Code of Iowa; prime eligible bankers acceptances: certain high rated commercial paper or other short -tern corporate debt; perfected repurchase agreements; Iowa Public Agency Investment Trust (IPAIT); certain registered open—end management investment companies registered with the Securities & Exchange Commission under the I'ede al Investment Company Act of 1940: and warrants or improvement certificates of a drainage district. 51 At June 30, 2020 the Citv of Iowa City had the tollowine Inveruments $ 28,162,049 The City uses the fair value hierarchy established by generally accepted accounting principles based on the valuation inputs used to measure the fair value of the asset. Level I inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. The recurring fair value measurement for the Federal Home Loan Mortgage Corporation securities of $8,017,934 and the Federal Famn Credit Bank securities of $10,235,291 were determined using the last reported sales price at current exchange rates (Level I inputs). The fair value measurement for the Exxon Mobil Corporation commercial paper of $4,931,028 and the Toyota Motor Credit Corporation commercial paper of $4,978,396 was determined using the last reported sales price at current exchange rates (Level I inputs). The City had no other investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. In addition, the Cityhad investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued at an amortized cost of $5,055,920, which approximates fair value. The Diversified Portfolio consists of cash and short-term investments valued at amortized cost, which approximates fair value, pursuant to Governmental Accounting Standards Board Statement No. 79. The Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. WAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. WAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Interest rate risk - The City's invesmtenl policy limits the investment of operating fund's to investments that mature within 397 days. The portion of operating funds in excess of 33% of operating funds may be invested in certificates of deposit which mature within 63 months or less. Funds not identified as operating funds may be invested in instruments with maturities longer than 397 days. Credit risk. Slate law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's Investors service as it is a state security that is backed by the full faith and credit ofthe issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. 52 Fair Investment Value Manor Lucs Federal Home Loan Mortgage Corporation notes $ 8.017.934 November 2023 to June 2025 Federal Farm Credit Bank Notes U35291 March 2022 to January 2026 F"on Mobil Corlxtmtion Commercial Paper 4931.028 December 2020 Toyota Motor Credit Corporation Commercial Paper 4978_396 September 2020 $ 28,162,049 The City uses the fair value hierarchy established by generally accepted accounting principles based on the valuation inputs used to measure the fair value of the asset. Level I inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. The recurring fair value measurement for the Federal Home Loan Mortgage Corporation securities of $8,017,934 and the Federal Famn Credit Bank securities of $10,235,291 were determined using the last reported sales price at current exchange rates (Level I inputs). The fair value measurement for the Exxon Mobil Corporation commercial paper of $4,931,028 and the Toyota Motor Credit Corporation commercial paper of $4,978,396 was determined using the last reported sales price at current exchange rates (Level I inputs). The City had no other investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. In addition, the Cityhad investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued at an amortized cost of $5,055,920, which approximates fair value. The Diversified Portfolio consists of cash and short-term investments valued at amortized cost, which approximates fair value, pursuant to Governmental Accounting Standards Board Statement No. 79. The Iowa Public Agency Investment Trust (IPAIT) represents an investment in a pool managed by others. WAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds. WAIT is registered under the Investment Company Act of 1940. The IPAIT portfolios have followed established money market mutual fund investment parameters designed to maintain a $1 per unit net asset value since inception and were registered with the Securities and Exchange Commission (SEC). Interest rate risk - The City's invesmtenl policy limits the investment of operating fund's to investments that mature within 397 days. The portion of operating funds in excess of 33% of operating funds may be invested in certificates of deposit which mature within 63 months or less. Funds not identified as operating funds may be invested in instruments with maturities longer than 397 days. Credit risk. Slate law limits investments to commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with rating restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody's Investors service as it is a state security that is backed by the full faith and credit ofthe issuing government and is not subject to credit risk. Concentration of credit risk. The City investment policy limits the amount that may be invested in any one issuer to a maximum amount approved by the City Council. 52 Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings associated with other funds. These funds aro the Employee Benefits, Other Shared Revenue and Grants, and Sanitation funds. 3. Interfund Balances and Transfers Interfund balances for the year ended lune 30, 2020, consisted of the following: Total S 298,952 Interfund balances at June 30, 2020, include due to/ from other funds, which represent amounts for negative cash balance funding. The $160.750 advance to the Nonmajor Governmental Funds is expected to be repaid within the next year. The $138,202 advance to the Nonmajor Enterprise Funds is expected to be repaid within the next year. Due from Advances from General Due to Debt Nonmajor Governmental $ 160,750 Nonmajor Enterprise 138,202 Total S 298,952 Interfund balances at June 30, 2020, include due to/ from other funds, which represent amounts for negative cash balance funding. The $160.750 advance to the Nonmajor Governmental Funds is expected to be repaid within the next year. The $138,202 advance to the Nonmajor Enterprise Funds is expected to be repaid within the next year. Interfund balances at June 30, 2020, include advances to/from other funds, which represent amounts for construction loans and a revenue bond redemption loan. $66,731 of the $81,980 advance to the Other Shared Revenue and Grants Fund is not expected to be repaid within the next year. $3,t86,669 of the $3,370,298 advance to the Other Construction Fund is not expected to be repaid within the next year. $900,244 critic $1,173,649 advance to the Nominator Enterprise Funds is not expected to be repaid within the next year. 53 Advances from Debt Service Sanitation Total Advances to: Other Shared Revenue and Grants $ 81,980 $ - $ 81,980 Other Construction - 3,370,298 3370,298 Nominator Enterprise - 1,173,649 1,173,649 Total $ 81,980 S 4,543,947 S 4,625,927 Interfund balances at June 30, 2020, include advances to/from other funds, which represent amounts for construction loans and a revenue bond redemption loan. $66,731 of the $81,980 advance to the Other Shared Revenue and Grants Fund is not expected to be repaid within the next year. $3,t86,669 of the $3,370,298 advance to the Other Construction Fund is not expected to be repaid within the next year. $900,244 critic $1,173,649 advance to the Nominator Enterprise Funds is not expected to be repaid within the next year. 53 Interfund transfers for the year ended lune 30, 2020, consisted of the following: Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. In the fund financial statements, total transfers in and transfers out of $28,649,108 are less than total transfers of $28,752,493 because of the treatment of transfers of capital assets from the governmental activities capital assets. 54 CaI)isIP leets BridE , srcet Other CapltalP jects onoTri the Shared Resins Employee Other Control Nonmalor General and Grants Benefits Comtnanor Constmdion Governmental Transfer to, Genital $ - S 92.326 8 11.279,971 S - $ - S 1.166.614 Other Shared Revenue and Grans 1.009.533 - 507.510 116.827 - - Debt Service 20.052 - - - - 1.059.633 Other Consmmtion 1.840778 - - - - 59537 Capital Pr deet, Bridge, Street and Traffic Control Construction 287.157 2.917,360 - - - - Nonmt9orGmemmenutl 222.663 283240 - - - - Tmnait 3.660.631 - - - - - N'nstewaterTreatment 1,971 - - - 505.028 - warer 1,710 - - 99,448 615.728 - $anitation 5.773 - - - - - slu nwaner 1.088 - - 55$485 636.358 Homing Authority - - - - - 61503 Nonmajor Enter prise 100.000 - - - - - huemalSeisee 7.114 118,786 614,980 153.133 Total Transferor $ 7.158470 S 3,401712 811787.481 S 1,389.740 $ 1910.247 $ 2,349347 Transfers are used to move revenues and bond proceeds from the fund that State statutes or the budget requires to collect them to the fund that the State statutes or the budget requires to expend them. In the fund financial statements, total transfers in and transfers out of $28,649,108 are less than total transfers of $28,752,493 because of the treatment of transfers of capital assets from the governmental activities capital assets. 54 Wastewater Housing NOomajoe Internal Total I eamtatt Water Sanitation Authornv Lam ase Service Transfer from S 49,483 S - $ - $12578,394 - - - - - - 1,633.870 - - - - - - Ij179,685 9W.315 224,000 - I10,000 - 3,538517 - - - - - - 505.903 - - - - 15.000 - 3,675,631 506,999 - 716,886 - 1lojviI - - - 66.390 181,163 - 30,718 - - - - L226,(W9 - - 63.563 - - - - - - 100.000 40344 6,176 941,533 S 224," S 140,718 $ 150.344 $ 49AS33 $ 21.176 $ 66.390 28,(,49.1 08 Transfers fiom govanmenml activities ca pita l assets to enmryrise funds 103385 ,428,79,493 During the year, construction in progress rcletcd to construction for the F3urlinoon and Clinton Intersection with values ofS74,859 and $28,526, were transferred from governmental activities capital asset to Water and Stormwater. respectively. No amounts were reported in the governmental funds, as the amounts did not involve the transfer of financial resources. However, Water and Stonnwater did report capital contributions for the capital resources received. 55 4. Capital Assets Capital asset activity for the year ended .lune 30, 2020, was as follows: Acquisitions Disposals Beginning and and Balance July 1,2010 Transten Transfers June 30, 2020 Govemmental activities. Capital assets, not being depreciated: 27,870343 1,690363 Land $ 30.807]44 S 351351 $ - S 31159.!%)5 Construction in treeless 20.483.970 7.467,555 17,950.999 10.000526 Tota l an otal assets, not theme deplecuted 51291.714 7.818,906 17,950.999 41,159.621 35%,054 2277,692 28031,978 Capital assets, being dent ecu¢d: 49,988.162 4,1 i5,476 Buildints 66364,532 661620 84,629 66,943523 Impmvemems other than landings 7,525,406 332,605 8500 7,849511 Machinery and equipment 45,371289 16.725781 2,408.002 59689.068 Infastructure 300274.745 14.493,790 23.290 214,745245 Tota l capital assets being deprecated 319,515.972 32215,796 1524.421 349227347 Less accumulated deprecation hot Buildings 27,870343 1,690363 84,629 29476,077 Impmvcmcnrs other than buildings 4024,287 265,730 8500 4281517 Machinery a nd equipment 27,353,016 35%,054 2277,692 28031,978 Infmsuucmrc 49,988.162 4,1 i5,476 23.290 54,120.348 Tota l acconuatcd deprecation 109235.808 9668,223 2394.111 116,509.920 Tota l capital assets, being depreciated. net 210300.164 2254757 110.310 232717.427 Govcrnmenta l activities capital assets, net $ 261591.878 $ 30366,479 $ 1$0$1309 $ 271877.048 Buslncee-typc activities. Capital assets, not being deprecated: Land $ 30317,185 $ - $ - $ 30317,185 Consnuction in pnigoess 2743,884 3,0342x3 2670,659 4101,478 Top l capital assets_ out being depreciated 341161,069 3,034253 2670,659 34,424,663 Capital assets, being depreciated: Buildings 134,184.994 - 04,770 134,120.2 4 Impmements other than buildings 11229,367 124,941 32,987 11,321.421 Machinery and equipment 39,799,973 4,937,885 290,031 43,347.727 Inirastmcmre 330,627,557 4.255,311 507.462 334,375.406 Tonal capita l a ssen beau deplecil red 514,841791 9.218,137 895,150 523,1 (A.778 Less accumulated depreciatom for: Baildin6 67,672589 3,424305 56,322 71,9w572 Intprowneris other than buildings 7,,23,877 396081 12,887 7,687,071 Machinery and equipment 2,692,122 1597355 242,919 27,046558 Infiaanucbme 113,495,414 7,278183 31s310 120.365,287 This l accumulated capita lation 214,094,002 12695924 650,438 _.6,139,488 Tota l capital atseta_ he ing deprecated, net 300,747,789 (3471.787) 244,712 2971015,290 Business -p- se activa its capital assets, net S 334908,858 $ (443,534) S 2915.171 $ 331.49.953 56 Depreciation expanse was charged to lim0.ions sN f ollows: Govemmetne l activities. PUNIC safety S 1,490.(4s Public wor4s 4,735338 Culture and rcerealion 3,032335 Communib and economic development 60.863 Generalgoeemmem 349.043 Totaldepreciation expense- govemmentalanivities 5 9,668223 Rusue,s-type activities. Immit S 1027517 W nsmwarcr avatmart 490353 Water 2554,752 Sanitation 831,982 Smrmwatcr 1332,301 I1ousinp authority 116,450 N onnevor enterprise 1263569 1 oral depreciation expense -business -type activities S 12.695924 5. Capital Lease Obligation In 2017, the eovernment entered into a lease agreement as lessee for financing the acquisition of a parking ramp valued at $15,497,867. The parking ramp has a 30 -year estimated useful life. This year, $516,596 was included in dcprcciation cxpcns'c. This lease agreement qualifies as a capital Icasc for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as ofthe inception date. On June I, 2020, the government made a payment of 59238,148 from cash on hand. On .lune 29, 2020, the government defeased the remaining S 174,876 capital lease obligation by prepaying all remaining principal and interest from cash on hand. The total amount of interest that was paid was $1,160. Liabilities for the defeased capital lease are not included in the City's financial statements. Total interest paid in fiscal year 2020 was 5375,798. Changes in Capital Lease Obligation Changes in the capital ]case obligation for the year ended June 30, 2020, was as follows: July 1,2019 Issues Rtuiness-type activities- $ 9.413.024 S 57 Due within Retieinents June 30, 2020 One Year $ 9.413.024 S $ 6. Long Term Debt Changes in Debt for Bonds Bond debt activity for the year ended June 30, 2020, was as follows: Due within Iuly1,2019 Issues Retirements June 30, 2020 One Year Gowmmenlal activities: $ 10,760,000 $ 1,456,373 2022 9,120,000 1,118,613 General obligarun bonds $ 52.470.000 S 11145.000 $ 11245.000 S 53.370.000 $ 10.760.000 Plus: Uttamonisd 5,495,000 488,712 2026-2030 13,770,000 742,925 Premium 932.638 926,415 221,168 1,637945 221,168 Tom l genera l obligation bonds 53.402.638 11071.475 IIpIM.108 55.007.945 10.981.168 Revenue bonds 14.930.000 - 140.000 14790.000 140.000 Less: Unamort0ed Discnuno 27611- 1,124 25,488 2,124 Total revenue bonds 14.902388 137.876 14764.512 137.876 $ 68305,026 S 13,071,475 $ 11,604.044 S 69,72,457 $' 11I19,044 edamess-r>7re acteities Revenue bonds Pias-Unatmrloed Premium Total revenue bonds General Obligation Bonds $ 20,140,000 S - $ 4,075,000 S 16,065,000 $ 420.000 1.015710 294.3�2 721.358 294,352 $ 11 15',,710 S $ 4,369352 Y 16,786,358 $ 4,544352 Various issues of general obligation bonds totaling $53,370.,000 are outstanding as of June 30, 2020. The bonds have interest rales ranging from 1.00%to 5.00% and mature in varying annual amounts ranging from $785,000 to $3,600,000 per issue, with the final maturities due in the year ending June 30, 2030. Interest and principal payments on all general obligation bonds, except lax abated portions recorded in the enterprise funds, are accounted for through the Debt Service Fund. Annual debt service requirements to maturity ba general obligation bonds are as follows: Fiscal Year Ending Governments] Activities June 30 Principal Interest 2021 $ 10,760,000 $ 1,456,373 2022 9,120,000 1,118,613 2023 7,675,0X10 870,863 2024 6,550,000 657,962 2025 5,495,000 488,712 2026-2030 13,770,000 742,925 Total $ 53.370,000 $ 5.335.448 58 Revenue Bonds As of June 30, 2020, the following unmatured revenue bond issues are outstanding: Revenue bond debt service requirements to maturity are as follows: Fiscal Year Fnding Governmental Activities Business -type Activities ,lune 30 Principal Interest Principal Interest 2021 $ 140,000 Wastewater 4,250,000 $ 477,665 Taxable Urban 1,110,000 445,475 Treatment 298,690 Water 1,110,000 Renewal 3,840,000 149,270 2024 Original issue amount $ 13,910,000 $ 14,510,000 $ 15,460,000 Interest rales 26,081 2.0%to5.00x 4,850,000 1.5%to5.00x 555,000 1.0%to3.90x Annual maturities $ 835,000 to $ 445,000 to $ 140,000 to 26,700 $ 2,085,000 $ 1,225,000 $ 965,000 Amount outstanding $ 7,365,000 $ 8,700,000 $ 14,790,000 Revenue bond debt service requirements to maturity are as follows: Fiscal Year Fnding Governmental Activities Business -type Activities ,lune 30 Principal Interest Principal Interest 2021 $ 140,000 $ 448,695 $ 4,250,000 $ 477,665 2022 1,110,000 445,475 4,350,000 298,690 2023 1,110,000 413,045 3,840,000 149,270 2024 1,105,000 380,345 1,745,000 55,825 2025 1,105,000 347,495 1,325,000 26,081 2026-2030 4,850,000 1261,750 555,000 6,244 2031-2035 4,480,000 531,075 - - 2036 890,000 26,700 Total $ 14,790,000 $ 3.854,580 $ 16,065,000 $ 1,013,775 The revenue bond ordinances required that wastewater treatment, water revenues, and urban renewal tax revenues be set aside into separate and special accounts as they are received. The use and the amounts to be included in the accounts arc as follows: (a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities. Sinking Reserve (b) Revenue Debt Service Reserve Amount required to be deposited in the Revenue Bond and Interest Reserve until the reserve fund equals: Taxable Urban Renewal Revenue bonds — maximum debt service due on the bonds in any succeeding fiscal year. Wastewater Revenue and Water Revenue bonds — 10% of the original principal amounts of all related bond is'sues. (c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds $1000,000 for Wastewater Revenue bonds and $5,000 pet month until the reserve balance equals or exceeds $450,000 for Water Revenue bonds, with no further deposits once the minimum balance is reached. If the reserve falls below the required minimum, monthly transfers in the aforementioned amounts will resume. 59 In fiscal year ended lune 30, 2020, the Wastewater Treatment Fund had net revenue of 56,551,000 and the amount of principal and interest due was $2,877,000. In fiscal year ended .lune 30, 2020, the Water Fund had net revenues of $3,647,000 and the amount of principal and interest due was $1,803,000. Summary of Bond Issues General obligation and revenue bonds payable at June 30, 2020, are comprised of the following issues: (1) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (2) This bond issue refunded the October 2008 Wastewater Revenue Bond. (3) This bond issue refunded the May 2009 Wastewater Reveaue Bonds. (4) This bond issue refunded the October 2002 Water Revenue Bonds. (5) This bond issue refunded the October 2008 Water Revenue Bonds. (6) This bond issued refunded the May 2009 Water Revenue Bonds. 60 Date of Amount Interest rand Outstanding Issue Issued Rates ylaturiry June 30, 2030 General Obligation Bonds: multi-Pugtose [Line 2012 9,070000 20-225 622 1,980,000 Multi -Purpose Ju1y2013 7.230,000 1.0-2.0 623 2560.000 Refunded Multi-Purpose(1) June 2014 11.980,000 2.0-3.0 624 3,950,000 Multi -Purpose [Line 2011 7,785,(1(1() 20-225 625 4,150,000 Multi -Purpose June 1016 8.795,000 2.0-30 626 5,875.000 Multi -Purpose June 2017 9,765,000 2.0-25 627 7,040,000 Multi -Purpose June 2019 8,895,000 I8-265 628 7,260,000 Multi -Purpose June 2019 12.535,000 2.0-2.25 6129 8,410.000 Multi -Purpose June 2020 12,145,000 2.0-5.0 6130 12,145.000 Total General Obligation Bonds S 53.370,000 Date of Amount Interest Final Outstanding Issue Issued Rates Maturity June 30, 2020 Revenue Bonds: Refunded wastewater Treatment Bonds (2) June 2016 9,360Ao0 3.0-4.0 721 1590,000 Refunded Waacwamd I reatment Bonds (3) June 2017 4,550,000 2.0-5.0 722 3,775,000 Refunded Water Bonds (4) June 2012 4,950A00 I5-11 722 L590.000 Refunded Water Bonds (5) June 2016 1650,000 1 5 -5 0 724 2,445.000 Refunded Water Bonds (6) June 2017 5,910,000 20-225 725 4,665.000 Taxable Urban Renewal Nov. 2012 2,655,000 In -3.9 632 1,985,000 Taxable Indiana Renewal Sera 2016 11805,000 l 0 636 12,805 000 total Revenue Bonds 3 30,855.000 S 84,225 000 (1) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General Obligation Bonds. (2) This bond issue refunded the October 2008 Wastewater Revenue Bond. (3) This bond issue refunded the May 2009 Wastewater Reveaue Bonds. (4) This bond issue refunded the October 2002 Water Revenue Bonds. (5) This bond issue refunded the October 2008 Water Revenue Bonds. (6) This bond issued refunded the May 2009 Water Revenue Bonds. 60 Conduit Debt Obligations From time to time, the City has issued Industrial Development Revenue Bonds and Midwestern Disaster Area Revenue Bonds to provide financial assistance to private sector entities for the acquisition, construction, and renovation of industrial and commercial facilities dcaned to be in the public interest. The bonds are collateralized by the property financed and are payable solely from payments received on the underlying mortgage loans. All payments on the bonds are made by the Pi k ate seetor entities directly to a bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective bond holders. Neither the City, the State, not any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2020, there were three series of Industrial Development Revenue Bonds outstanding, with an aggregate principal amount payable of $28.283,674. Debt Legal Compliance Legal Debt Margin: As of June 30, 2020, the general obligation debt is's'ued by the City did not exceed its legal debt limit computed as follows (amounts expressed in thousands): Assessed valuation: Real property S 6,024,446 Utilities 109.124 Total valuation S 6,133,570 Debt limit,5% oftotal assessed valuation S 306,679 Debt applicable to debt limit General obligation bonds 53,370 Urban renewal revenue bonds 14,790 Notes payable 211 Other legal indebtedness(TIF rebates)(Note 12) 25.877 Total net debt applicable to limit 94,24 Legal debt margin S 112.431 7. Pension and Retirement Systems The City conn notes to two employee retirement systems, the Municipal Fire and Police Retirement System of Iowa (MFPRSI) and the Iowa Public Employees Retirement System (IPERS). MFPRSI is govcmed by a nine -member Board of Trustees. Though separate and apart from state government, the Board is authorized by the state legislature, which also establishes by statute the pension and disability benefits and the System's funding mechanism, IPERS is administered by the State of Iowa. All full -lime employees must participate in either MFPRSI or IPERS. As of June 30, 2020, the City had the following balances related to its pension accounts: 61 IPERS MFPRSI Total Net Pension Liability S 23,474,689 $ 24,170,107 $ 47.644,796 Defer red Inflows 3,709,183 576,745 4,285,928 Deferred Outflows 5,640,199 6,368,299 12,008,498 Pension Expense 4,034,704 5,143,397 9,178,101 61 Municipal Fire and Police Retirement System of Iowa (MFPRSI) Plan Description MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI. MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake Drive, Suite 9201, West Des Moines, Iowa 50266 or at scs� w in tprsi ucr. MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits Members with 4 or more years of service are entitled to pension benefits beginning at age 55. Full service retirement bcncfits are counted to members with 22 years of service, while partial benefits arc available to those members with 4 to 22 years of service based on the ratio of years completed to years required (i.e., 22 years'). Members with less than 4 years ofservice are entitled to a refund of their contribution only, with interest, for the period of employment. Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3 years becomes the member's average final compensation. The base benefit is 66 percent of the member's average final compensation. Additional bcncfits are available to members who perlbnm more than 22 years of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits arc available to the benctIciary of a retired mcmbcr according to the provisions of the bcncfit option chos'cn plus an additional benefit for each child. Survivor benefits are subject to a minimum benefit for those members who chose the basic benefit with a 50 percent surviving spouse benefit. Active members, at least 55 years of age, with 22 or more years of service have the option to participate in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a 3, 4, or 5 year DROP period. By electing to participate in DROP the member is signing a contract indicating the member will retire at the end of the selected DROP period. During the DROP period the member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for the member. Assuming the mcmbcr completes the DROP period, the DROP benefit is equal to 52% of the member's retirement benefit at the member's earliest date eligible and 100% if the member delays enrollment for 24 months. At dtc member's actual dale of retirement. the member's DROP account will be distributed to the member in the form of a lump sum or rollover to an eligible plan. Disability and Death Benefits Disability coverage is broken down into two types, accidental and ordinary. Accidental disability is defined as permanent disability incurred in the line of duty, with benefits equivalent to the greater of 60 per of the member's average final compensation or the member's service retirement benefit calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the in of 50 percent of the member's average final compensation, for those with 5 or more years of service, or the member's service retirement benefit calculation amount, and 25 percent of average final compensation for those with less than 5 years of service. Death beach is are similar to disability bcncfits. Benefits for accidental death an 50 percent of the average final compensation of the member plus an additional amount for each child, or the provisions for ordinary death. Ordinary death benefits consist of a pension equal to 40 percent ofthe average final compensation of the member plus an additional amount for each child, or a lump -sum distribution to the designated beneficiary equal to 50 percent ofthe previous year's earnable compensation ofthe member or equal to the amount ofthe member's total contributions plus interest. 62 Benefits are increased annually in accordance with Chapter 411.6 of the Code of Iowa which states a standard formula for the increases. Thu surviving spouse or dependents of an active mcmbcr who dies duo to a traumatic personal injury incurred in the line of duty receives a $100,000 lump -sum payment. Contributions Member contribution rates are set by state statute. In accordance with Chapter 411 of the Code of Iowa, the contribution iate was 9.40% of carnablc compensation for the year ended June 30, 2020. Employer contribution rates are based upon an actuarially determined normal contribution rate and set by state statute. The required actuarially determined contributions are calculated on the basis of the carry age normal method as adopted by the Board of Tiustees as permitted under Chapter 411 of the Code of Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan less current plan assets, with such total divided by I percent of the actuarially determined present value of prospective future compensation of all members, further reduced by member contributions and state appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.000% of earnable compensation. The contribution rate was 24.41% for the year ended June 30, 2020. The City's contributions to MFPRSI for the year ended June 30, 2020 was $2.808,200. If approved by the state legislature, state appropriation may further reduce the employer's contribution rate, but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the provisions of the Governmental Accounting Standards Board Statement No. 67— Financial Reporting for Pension flans, (GASB 67). There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2020. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the City reported a liability of 524,170,107 for its proportionate share of the net pension liability. The net pension liability was measured as of.lune 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 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 MFPRSI participating employers. At June 30, 2019, the City's proportion was 3.684880 % which was a decrease of.022090%from its proportions measured as of June 30, 2018. 63 For the year ended lune 30, 2020, the City recognized pension expense of $5,143,397. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Change of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contrbutions and proportionate share of contributions City contributions subsequent to the measurement date Total Deferred Outflows of Deferred Inflows of Resources Resources It 832,292 $ 226.173 1,213,537 June 30, 2022 105,196 1,331,681 182,589 245,376 2,808,200 $ 6368,299 $ 576,745 $2,808,200 reported as deferred outflows of resources related to pensions resulting from City contributions s'ubs'equent to the measurement date will be recognized as a reduction of the net pension liability in the year ended ,lune 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Total June 30, 2021 $ 1525,625 June 30, 2022 193,860 June 30, 2023 710,006 June 30, 2024 520,406 June 30, 2025 27,337 $ 2,983,354 Actuarial Assumptions The total pension liability in the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement Rate of inflation Salary increases Investment rote of return 3.00 percent per annum 3.75 to 15.11 percent, including inflation 7.50 pcment, net of pension plan investment expense, including inflation 64 The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from July I, 2007 to June 30, 2017. Postretimment mortality rates wort based on the RP -2014 Blue Collar Combined Healthy Annuitant Table with males set -forward zero years, females set -forward two years and disabled individuals set -forward three years (male only rates), with generational projection of future mortality improvement with 50 percent of Sea IC BB beginning in 2017. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates (i.e., expected returns- net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The best estimates of arithmetic real rates of return for each major asset class are summarized in the following table - Long Term able: Discount Rate The discount rate used to measure the total pension liability was 7.5%. The projection of cash Flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions- the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Citv's Proportionate Share of the Net Pension Liabilitv to Chanties in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.5%, as well as what the city's proportionate share of the nut pension liability would be if it were calculated using a discount rate that is I% lower m5tio) or I "/ higher (8.5"/o) than the current rate. 1% Decrease Discount Rate 10/0 Increase (6.5%) (7.5%) (8.5%) City's proportionate share of the net pension liability: S 39,353,172 $ 24,170,107 $ 11.595557 65 Long-Term Expected Asset Class Real Rate of Return Core Plus Fixed Income 3.3 % Emerging Markets 9.0 Emerging Markets Debt 6.3 Large Cap 5.5 Small Cap 5.8 Master Limited Partnerships (MLP) 9.0 International Large Cap 7.3 Tactical Asset Allocation 6.4 Private Equity 9.0 Private Non -Core Real Estate 8.0 Private Core Real Estate 6.0 Discount Rate The discount rate used to measure the total pension liability was 7.5%. The projection of cash Flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and the City contributions will be made at rates equal to the difference between actuarially determined rates and the member rate. Based on those assumptions- the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Citv's Proportionate Share of the Net Pension Liabilitv to Chanties in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.5%, as well as what the city's proportionate share of the nut pension liability would be if it were calculated using a discount rate that is I% lower m5tio) or I "/ higher (8.5"/o) than the current rate. 1% Decrease Discount Rate 10/0 Increase (6.5%) (7.5%) (8.5%) City's proportionate share of the net pension liability: S 39,353,172 $ 24,170,107 $ 11.595557 65 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately is's'ued MFPRSI financial report which is available on MFPRSI's wcbsiteat a N a iufprsi ur_. Pavables to the Pension Plan At June 30, 2020, there were no amounts due to MFPRSI. Iowa Public Employees Retirement System (IPERS) Plan Description IPERS membership is mandatory for employees of [hc City, except for those covered by another retirement system. Employees of the City are provided with pensions through a cost-sharing multiple employer defined benefit pension plan administered by IPERS. IPERS issues a stand-alone financial report which is available to the public by mail at 7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at w tr w.Aper;.Org. IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder. Chapter 97B and the admiiis'trativc rules arc the official plan documents. The following brief description is provided for general informational purposes only. Refer to the plan documents for more information. Pension Benefits A regular member may retire at normal retirement age and receive monthly benefits without an early- retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more years of covered employment, or when the member's years of service plus the member's age at the last birthday equals or exceeds 88, whichever comes first. (These qualifications must be met on the member's first month of entitlement to benefits.) Members cannot begin receiving retirement benefits before age 55. The formula used to calculate a Regular member's monthly IPERS benefit includes: • A multiplier fbas'ed on years of service). • The member's highest five-year average salary. (For members with service before June 30, 2012, the highest three-year average salary as of that date will be used if it is greater than the highest five- year average salary.) If a member retires before normal retirement age, the member's monthly retirement benefit will be permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated differently for service earned before and after July I, 2011 For service earned before July 1, 2012, the reduction is 0.25 percent for each month that the member receives benefits before the member's earliest normal retirement age. For service earned starting July I, 2012, the reduction is 0.50 percent for each month that the member receives benefits before age 65. Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began receiving benefit prior to July 1990 receive a guaranteed dividend with their regular November benefit payments. Disability and Death Benefits A vested member who is awarded federal Social Security disability or Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age Disability benefits are not reduced for early retirement. If a member dies before retirement, the member's beneficiary will receive a lifetime annuity or a lump-s'um payment equal to the present actuarial value of the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend on the benefit option the member selected at retirement. 66 Contributions Contribution rates arc cstablis'hcd by IPERS following the annual actuarial valuation, which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. Statute limits the amount rates can increase or decrease each year to I percentage point. IPERS Contribution Rate Funding Policy requires that the actuarial contribution late be determined using the `entry age normal" actuarial cost method and the actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial contribution late covers normal cost plus the unfunded actuarial liability payment based on a 30 -year amortization period. The payment to amortize the unfunded actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization Method adopted by the Investment Board. In fiscal year 2020, pursuant to the required rate, Regular members contributed 6.29°/u of pay and the City contributed 944"/o for a total rate of 15.73%. The City's' total contributions to IPERS for the year ended June 30, 2020 were 52,958,649. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the City reported a liability of 523,474,689 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30,2019, and the total pension liability used to calculate the net pension liability was ddamined by an actuarial valuation as of that dale. 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. AtJune 30, 2019, the City's proportion was 405389% which was an increase of .003702% from its proportions measured as of June 30, 2018. For the year ended June 30, 2020, the City recognized pension expense of $4,034,704. At June 30, 2020, the City reported deterred mallows of resources and deterred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of ROSOUrces Resources Differences between expected and actual experience $ 65,078 $ 844,027 Change of assumptions 2,514,475 Net difference between projected and actual earnings on pension plan inves0ments 2,615,315 Changes in proportion and dilTerenees between City contributions and proportionate share of contributions 101,997 219,841 City contributions subsequent to the measin ement date 2,958.649 Total $ 5,640,199 S 3,709,183 67 $2,958,649 reported as deferred outflows of resources related to pensions resulting from City contributions s'ubs'equent to the measurement date will be recognized as a reduction of the net pension Iinto Iity in the year ended lune 30. 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Total (effective June 30, 2017) June 30, 2021 S 360.751 (effective June 30, 2017) ,lune 30, 2022 (578586) (effective June 30, 2017) June 30, 2023 (363,020) (effective June 30, 2017) June 30, 2024 (403,192) June 30, 2025 (43.586) S (1,027.633) Actuarial Assumptions The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in themeasurement: Rate of inflation 2.60% per annum (effective June 30, 2017) Salary increases 3.25 to 16.25%, average, including inflation. Rates vary by (effective June 30, 2017) membership getup. Investment rate of return 7.00% compounded annually, net of pension plan investment (effective June 30, 2017) expense, including inflation wage growth 3.25% per annum based on 2.60E inflation and 0.65°G (effective June 30, 2017) real wage inflation The actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience study dated March 24 2017 and a demographic assumption study dated June 28, 2018. Mortality rates were based on the RP -2014 Rmployee and Healthy Annuitant Tables with MP -2017 generational adjustments. 68 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-es5mate ranges of expected future real rates (i.e., expected returns, act of pcnsion plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The taiga allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long -Term Expected Target Allocation Real Rate of Return Core Plus Fixed Income 27.0 % 1.71 % Domestic Equity 22.0 5.60 I nternational Equity 15.0 6.08 Private Equity I L(1 10.13 Private Real Assets 7.5 4.76 Public Real Assets 7.0 2.81 Public Credit 3.5 3.32 Private Credit 3.0 3.01 Global Smart Beta Equity 3.0 5.82 Cash 1.0 (0.21) Total 100.0 ° o Discount Rate The discount rate used to measure the total pension liability was 7.0%.. The projection of cash flows used to determine the discount rate as's'umed employee contributions will be made at the contractually required rate and that the contributions from the City will be made at contractually required rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all pajcried future bcnelit payments to current act iveand inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Citv's Proportionate Share of the Net Pension Liabilitv to Chanties in the Discount Rate The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.0%, as well as what the city's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I % lower (6.0%) or I % higher (S.0%) than the current rate. 1% Decrease Discount Rate 1% Increase (6.0°/%) (7.0%) (8.0% City's proportionate share of the net pension liability: S 41,683,469 $ 23,474,689 $ 8,201,364 Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary nut position is available in the separately is's'ued IPERS financial report which is available on (PERS' website at ct ww_ipon arg. Parables to the Pension Plan AtJune 30, 2020, there were no amounts due to IPERS. 69 8. Other Long-term Liabilities Changes in Long -Perm Liabilities -Notes Payable Note payable activity for the year ended.I tine 30, 2020, was as fnllows. Due Within July I,2019 Issues Retirements .lune 30, 2020 One Year cumemmenml activities-. $ 2103&1 g $ S 210.794 $ A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an I I unit apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms ofthe loan are I%, interest only payments for twenty years with a final balloon payment of S210,784 due on Aucus't 1. 2025. Changes in Long -Term Liabilities - Employee Nested Benefits Employee Vested Benefit activity for the year ended June 30, 202'0, was as follows: Due Within July 1,2019 Issues Retirements June 30, 2020 One Year Governmental activities. $ 2319,452 $ 1,77532 S 1,307338 S 2330,646 $ 1,524381 Businesstypeacriviries. $ 727,970 $ 558,226 $ 424,617 S 861,579 $ 496,373 For the governmental activities, employee vested benefits arc generally liquidated by the General Fund, Community Development Block Grant Fund and Other Shared Revenue and Grants Fund. Changes in Long -Term Liabilities - Landfill Closure Post -closure Care Costs Landfill Closure Posbclosure care activity for the year ended June 30, 2020 wtss tss follows: Due Within Iuy1,2019 Issues Retirement ,I one 30, 2020 OncYear Businetis-type activities. $ 9,751,079 $ 909,199 g S 10,660279 $ In August 1993, the GASB issued Statement No. IS, Accounting for Municipal Solid Waste Landfill Closure and Post-closmn-e Cm -e Cosrs (the Statement). Under these rules, in addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclos lm care costs that will be incurred hearth aller the date the landfill no longer accepts waste. The recognition of these landfill closure and post -closure care costs is based on the amount of the landfill used during the year. 70 The estimated liability for landfill closure and post -closure care costs as of June 30, 2020, is S 10,660,278, which is based on 53.6% usage (filled) of the landfill and is included in accrued liabilities within the Sanitation Fund. It is estimated that an additional amount of approximately 59.228,301 will he recognized as closure and post -closure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity by the year ended .lune 30, 2039. The estimated total current cost of the landfill closure and post -closure care costs at June 30, 2020, was determined by a licensed professional engineer and approximated at $19,888,579. it is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2020. These amounts are based on an estimated post -closure care and monitoring period of 30 years, consistent with current State Department of Natural Resources regulations. however, the actual cost of closure and post -closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by federal and state laws and regulations to provide some form of financial assurance to finance closure and post -closure care. The City will meet its financial assurance obligations through the issuance of general obligation bonds. As of June 30, 2020, the Sanitation Fund had $14,457,544 in related equity in pooled cash and investments, at fair value designated for s'atis'faction of closure: and post -closure costs. The City estimates that these cash reserves will only provide a fraction of the dollars needed to close and monitor the landfill. The remaining portion ofpostulosto a care costs, anticipated futurc inflation costs and additional costs that might arise from changes in post -closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users as well as City taxpayers. Changes in Long -Term Liabilities — Other Postemployment Benefits (OPEB) Plan Description: The City operates a single -employer self-fimded 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. All fill -time employees who retire or term inateh'es'ign and their eligible dependents are offered the following post-cmploymcnt bcncf it options: Health insurance and dental insurance— The option of continuing with the City's health insurance plan at the individual's expense. These benefits cease upon Medicare eligibility. Life insurance— The option of converting the employee's City -paid policy to an individual policy at the individual's expense with the City's life insurance carrier. Long-term disability— For employees who terminate/resign and have been on the plan for a minimum of one year, the option of converting the employee's City -paid group policy to a personal policy at the individual's expense with the City's long-term disability insurance cznier. The above options, while at the individual's own expense, are included within the City's overall insurance package, which results in an implicit rate subsidy and an OPEB liability. Retired participants must be age 55 or older at retirement. At June 30, 2020, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefit payments 59 Active employees 614 Total 673 Total OPEB Liability: The City's total OPEB liability of $8,627,420 was measured as of June 30, 2020 and was determined by an actuarial valuation as of that date. 71 Actuarial Assumptions: The total OPEB liability in the lune 30, 2020 actuarial valuation was determined using the following actuarial assumptions and the entry age normal actuarial cost method, applied to all periods included in the measurement. Rate of inflation 2.60'Noo per annum (effective June 3), 2020) Rates of salary increases 3.250/o per annum based on 2.600/0 inflation and 0.65% (effective June 30, 2020) real wage inflation Discount rate 2.66%, compounded annually, including inflation (effective June 30, 2020) Healthcare cost trend rate 8.000/o initial rate decreasing by .5% annually to an ultimate (effective June 30, 2020) rate of 4.50"/0 Discount Rate: The discount rate used to measure the total OPEB liabilitv was 2,66% which reflects the index rate for 20 -year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher as of the measurement date. Mortality rates for general participants are brain the SOA Pub -2010 General Headcount Weighted Mortality Table fully generational using, Scale MP -2019. Mortality rates for public safety participants are from the SOA Pub -2010 General Headcount Weighted Mortality Table fully generational using Scale MP -2019. Annual retirement probabilities are based on varying rates by age and tumover probabilities mirror those used by (PERS and MFPRSI. The actuarial assumptions used in 0ie ,lune 30, 2020 valuation were based on the results of an actuarial experience study with dates corresponding to those listed above. Changes of assumptions reflect a change in the discount rate from 3.51 "/o in fiscal year 2019 to 2.66% in fiscal year 2020. It also reflects changes in the mortality tables, termination rates, salary merit increase rates, retirement rates and dccrcas'ing the initial health care trend rate from 8.50% in fiscal year 2019 to 8.00% in fiscal year 2020. 72 Total OPEB Liability Total OPEB liability beginning of year $ 8,877,831 Changes for the year: Service Cost 633,456 Interest 322,689 Difference between expected and actual experience (482,695) Changes in assumptions (82,608) Benefit payments (641,253) Net changes (250,411) Total OPEB liability end of year $ 8,627420 Changes of assumptions reflect a change in the discount rate from 3.51 "/o in fiscal year 2019 to 2.66% in fiscal year 2020. It also reflects changes in the mortality tables, termination rates, salary merit increase rates, retirement rates and dccrcas'ing the initial health care trend rate from 8.50% in fiscal year 2019 to 8.00% in fiscal year 2020. 72 Sensitivity of the City's Total OPEB Liability to Chanties in the Discount Rate: The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount tate that is 1% lower (1.66%) or 1% higher (3.66%) than the current discount rate. 1% Decrease Discount Rate 1% Incicas'e (1.66%) (2.66%) (3.66%) Total OPEB liability $ 9,232,982 $ 8,627,420 S 8,047,366 Sensitivitv of the Citv's Total OPEB Liabilitv to Chanties in the Healthcare Cost Trend Rate: The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rate that is I o o lower (7.00o �) or I o � higher (9.00%) than the current healthcare cost trend rate. Healthcare Cost I% Decrease Trend Rate I% Increase (T00%) (8.00%) (9.000/11) Total OPEB liability $ 7,646,293 $ 8,627,420 S 9,786,806 OPER Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB: For the year ended June 30. 2020, the City recognized OPEB expense of S 1098,814. AtJune 30, 2020, the City reported deferred outflows of resourcuw and dcfcn'cd inflows of resources related to OPEB from the following resources: Deferred OmFlowa Deferred InFlows Differences between expected and actual experience $ 928.088 $ 698,197 Change of ecmmpnais 868,141 74.347 Total S 1796,829 $ 772544 The amount reported as deferred outflows of resources and deferred inflows of resources related to OPFB will be recognized as OPEB expense as follows: Year Ended Total June 30, 2021 $ 142,669 ,lune 30, 2022 142,669 June 30, 2023 142,669 June 30, 2024 142,669 June 30, 2025 142,669 Thereafter 310,940 $ 1,024,285 73 9. Short Term Debt Changes in Short-I'erm Liabilities -Notes Payable Notts Paable activity far the year ended lune 30, 2020. was as follows: Due Within ,July 1, 2019 Issues Retirement ,June 30, 2020 OneYcar Gownmrental activities'. $ 602,500 $ 349A00 $ 951,500 $ $ During FY20, the City entered into additional multiple short -tern loans totaling $349,000 and repaid multiple short-term loans totaling 5951,500. The loans were used to fund the acquisition and rehabilitation of single-family homes as part of the UnivcrCity Neighborhood Partnership Program (UniverCity). UniverCity is a cooperative effort of the City of Iowa City and the University of Iowa dedicated to ensuring that the University of Iowa Campus and surrounding neighborhoods remain vital, safe, affordable, and attractive places to live and work for both renters and homeowners. The short-term loans were repaid with the proceeds from the sale of the rehabilitated homes. During FY20, all lines of credit were closed. 111. Fund Equity Fund balances for the govemmctual funds are reported in c[ossifications that comprise a hierarchy based on the extent to which the government honors constraints on the specific purposes for which amounts in those funds can be spent. • The Nonspendable classification contains amounts not in spendable form or legally or contractually required to be maintained intact. • Restricted amounts contain restraint on their use externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or imposed by law through constitutional provisions m enabling legislation. • Committed amounts can only be used for specific purposes imposed by formal action of the government's highest level of decision-making authority. The highest level of decision-making authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance commitment. • Amounts intended to be used for specific purposes are Assigned. Assignments should not cause deficits in the Unassigned find balance. The Finance Director has been delegated authority by the City Council through a resolution to assign amounts to be used for specific purposes. • Unassigned fund balance is the residual classification for the General Fund. The General Fund is the only fund that would report a positive amount in unassigned fund balance. Residual deficit amounts of other governmental funds would also be reported as unassigned. The City would use Restricted fund balances first, followed by Committed resources, and then Assigned res'ources, as appropriate opportunities arise, but reserves, the right to selectively spend Unassigned resources Brat to defer the use of these other classified funds. 74 Components of Fund Balance Assigned to 9nd99, 1,189,Ell - - - - - - 1169393 Raparonnoll andAra u0n Oscar Streat and 4 Co 791 - - - - - - Erred _77777 Pan, 37 563 Other 77777 EmployeeOther 353C31to (AmrAb rest a Total Pay palm... 5 accusers $ 5754,692 Gene..I Oanrsn Ell rbrtelnulon Con, it,, don Sol ce E, no, total Pool Care Principal 5 69 000 $ $ - S - 8 - 6 - 8 - 8 69 YK monthly 277,620 277 620 Property Held tar Resale 479 910 - 4P9910 Post NonependeWe bay 910 2!]620 tl"e65YJ mogul far Public Sandy 442891 ARE 891 Part Sproc, 9 748 129 9 748 129 Go l� Banco tl]b gtla - 2 4 End 245 Pree side FmbrtO - 3,5479 23 _ 6her 923 i A9meari 5,6053x6 1566516 ein9 - 622 Col 1 622 344 Economic Dreheopment 1 374 175 1 374 175 Ne,Caesars 1252 ,093 2 1.62095 Pme Caa Employee Ast 3 b853 - - - 1564,69 Omar ini par 114 b06 Bob 434 367 7)3 2ab Pool disclose 1 747098 5477CO 35brial 8763260 15 red oP5 9748 129 13888 ROAPA 285 Assigned to real Pioymnw 1,189,Ell - - - - - - 1169393 Raparonnoll andAra u0n 4 Co 791 - - - - - - Ether ,levee _77777 37 563 Total Ashisned 77777 moss9nM. 353C31to 24100 1686726' 34 758247 Total Pay palm... 5 accusers $ 5754,692 $ 3574.656 5 6763260 $ Paat965 $ 9723,949 8 4,727162 $ 91,761 11. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; workplace accidents, errors and omissions; and natural dis'asters. During fiscal year 1988 the City established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks of loss. During the year ended June 30, 2020 the City purchased property, liability, and workers' compensation insurance under the program that provides for a $100,000 seffinsurad retention per occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a $500,000 self insured retention on workers' compensation los's'es. The liability insurance provides coverage for claims in excess of the aforementioned self-insured retention up to a maximum of $21,000,000 annual aggregate of losses paid. Settled claims have not exceeded this commercial coverage in any of the past thirty-one fiscal years. The operating funds pay annual premiums to the Loss Reserve Fund. Accumulated monies in the Loss Reserve Fund are available to cover the self-insured retention amounts and any uninsured losses. 75 The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk Management Association. The remaining funds participate in the Los's Reserve Fund. The funds make payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and current-year claims and to establish a reserve for catastrophic losses. The Fund's accrued liabilities balance includes a clatins liability at June 30, 2020 based on the rcquircmcnus of GASB Statement No. 10, as amended, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been mean Cd at Otc date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund's claims liability amount for property, liability, and workers' compensation for the years ended June 30, 2020 and 2019 are as follows: Cur'ent-Year Beginning-of- Claimsand Balance at Fiscal-Year Changes in Claim Fiscal Liabilitv Estimates Pavments Year-End 2018-2019 $ 2,173,000 $ 1,510,000 $ 976,000 S 2.707,000 2019-2020 2,707,000 761,000 907,000 2,561,000 Also, the City is partially self insured, through stop -loss insurance, for employee health care coverage, which is available to all of its permanent employers. This insurance provides stop -loss coverage for claims in excess of $125,000 per employee with an aggregate stop -loss of $12,281,650. The operating funds are charger] premiums by the Loss Rcsomc Fund The City reimburses a health insurance provider for actual medical costs incurred, plus a claims processing administrative fee. Changes in the Loss Reserve Fund's elatins I i A i I ity amount for health care coverage for the years ended Jun 30, 2020 and 2019 arc as follows: 76 Current -Year Bcginning-of Claims and Balance at Fiscal -Year Changes in Claim Fiscal Liabilitv Estimates PaYmcnis Ycar-End 2018-2019 $ 410,000 $ 9,735,000 S 9,295,000 $ 850,000 2019-2020 850,000 9,167,000 8,948,000 1,069,000 76 12. Commitments and Contingencies Contractual Commitments The total outstanding continental commitments as of.lunc 30, 2020 are as follows: Fund Project Amount Bridge, street and traffic Paving and Rridge Construction, control construction Engineering Design and Consulting S 9,916,449 Other construction Public Works & Culture and Recreation Construction 2,120,463 Parking Parking Facility Restoration Repair 8,675 Wastewater Sewer Construction & Generator Relocation 373,940 Water Water Construction& Water Pressure Zone Improvement 185,751 Transit Pedestrian/Transit Amenities 13,937 Airport Runway Obstruction Mitigation & Fuel Kiosks 399,444 Stomrwater Stormwater System Improvements & Storm Sewer 608,496 Replacements S 13,627,155 Developer Commitments In order to encourage development within designated TIF districts, the City Council has approved developer grants to 7 difTerent projects. The grants are to be paid only atter certain conditions have been met by each project developer, and are to be paid over many years in the form of rebate of a predetermined percentage Of future property taxes generated by the property. Currently, it is estimated that outstanding commitments totaling $25,576,859 exist, of which $1,197,073 is expected to be paid in the next fiscal year. These items are expensed in the period in which they are paid There were payments made in the current fiscal year in the amount of $1,576,991. No liability is recognized due to the fact that the agreements are conditional and the payments are to be funded by four e property taxes receivable on the project. 13. Contingent Liabilities Litigation The City is a defendant in a number of lawsuits arising principally I}mm claims against the City for alleged improper actions by City employees, with such lawsuits typically involving claims of improper police action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination. Total damages claimed are substantial; however, it has been the City's experience that such actions are settled for amounts substantially less than claimed amounts. The City s management estimates that the potential claims against the City, not covered by various insurance policies, would not materially affect the financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit) to cover onins tried judgments against the City. 77 14. Tax Abatements Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. City Tax Abatements The City provides tax abatements for urban renewal and economic development projects with tax increment financing as provided for in Chapters ISA and 403 of the Code of Iowa. For these types of projects, the City enters into agreements with developers which require the City. atter developers meet the terms of the agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an economic development giant or to pay the developers a predetermined dollar amount. No other commitments were made by the City as part of these agreements. For the year ended June 30, 2020. $597,327 of property tax was diverted from the City under the urban renewal and economic development projects. Tax Abatements of Other Entities Property tax revenues of the City were not reduced by any amount for the year ended June 30, 2020 under agn'ecmcnts entered into by any entities. 15. Subsequent Event The COVID-19 outbreak is disrupting business across a range of industries in the United States and financial merkcts have experienced a significant duclinc. As a result, local, mgional and national economies, including that of the City, may be adversely impacted. The extent of the financial impact of COVID-19 will depend on future developments, including the duration and spread, which are uncertain and cannot be predicted. Due to the uncertainties surrounding the outbreak, management cannot presently estimate the potential impact on the City's operations and finances. 16. New Governmental Accounting Standards Board (GASB) Standards The Governmental Accounting Standards Board (GASB) has issued ten statements not yet implemented by the City. The statements, which might impact the City's financial statements, are as follows: Statement No. 84, Fiduciary Activities, will be effective for fiscal year ending June 30, 2021. The objective ofthis Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. Statement No. 87, Leases, will be effective for fiscal year ending ,lune 30, 2022. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. Statement No. 89, Accounting for Interest Cost Incurred before the End ofa Construction Period. will be effective for fiscal year ending .lune 30, 2022. The objectives of this Statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. 78 Statement No. 90, Majority Equity Interests — an amendment of GASB Statements No. 14 and No. 61 will be effective for fiscal ycar ending June 30,2021. The objectives ofthis Statement are to improvc the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. Statement No. 91, Conduit Debt Obligations, will be effective for fiscal year ending June 30, 2023. The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note dis'clos'ures. Statement No. 92, Omnibus 2020, will be effective for fiscal year ending June 30, 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application ofcut into GASB Statements. Statement No. 93, Replacement of Interbank Offered Rates, will be effective for fiscal year ending June 30, 2022. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements, will be effective for fiscal year ending June 30 2023. The primary objective of this Statement is to improvc financial reporting by addressing issues related to public-private and public -public partnership arrangements (PPPs). Statement No. 96, Subscription -Based Information Technology Arrangements, will be effective for fiscal year ending June 30, 2023. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology anangements (SBITAs) for government end users (governments). Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans -an amendment of GASB Statements No. 14 and No. S4, and a supersession ofGASB Statement No. 32, will be effective for Oscal year ending .lune 30, 2022. The primary objective of this Statement are to 1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government perforans the duties that a governing board typically would perform; 2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and 3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Suction 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The City's management has not yet determined the effect these statements will have on the City's financial statements. 79 City of Iowa City, Iowa Budgetary Comparison Schedule Budget and Actual - All Governmental Funds and Enterprise Funds Budgetary Basis Required Supplementary Information For the Year Ended June 30, 2020 (dollar amounts expressed in thousands) Espendinre, Fxpensti Publlcsafcty GOvcrnneanI - 25,917 PuMicworks Fund Types Enterprise Fund 10,290 Health and social tot vco, Actual Rudgenry Tme.x Actual Total ACWal Culneand recreation [iasis Buducery fiasis Budgetary Basis Ramnucs' 10,346 - 10346 Pmpetty vexes S 59.257 S - S 59,257 Delinquent property nixes 103 - 103 Tax increment financin_e taxeb 3,435 - 3,435 Other city taxes 2,747 - 1,747 Special assessments - - - I.nenscsandporion, 2,352 12 1,364 Into'cavunmental 19,060 16,343 35,403 Charges for scrviccs 5,764 39.878 45,642 Use ofcroney and propcny 1,842 2.612 4,454 Miscellaneous 2,044 6N9 2,733 Total revenues 96,604 S9,534 156138 Espendinre, Fxpensti Publlcsafcty 25,917 - 25,917 PuMicworks 10,290 - 10,290 Health and social tot vco, 4813 - 481) Culneand recreation 14,147 - 14,147 ( mamun ity and economic dcvelopmenl 10,346 - 10346 General covcrnnart 9,183 - 9,183 Debt survicc 13,038 - 13,038 Capital onlay 24,573 - eT573 Bonine.>~ type 64.784 64,784 Total expenditures/expenses 107,974 61784 172,758 Excess(deficiency) of revenues over (under) expend in res/expenses (11,370) (5250) (1 Q,20) Other finaneina souvcs and uses. net 11,539 2]26 14,265 Net change in fund balance 169 (2.524) (2355) Balances, beginning ofycai 88,915 93.855 181770 Balances, end of year $ 89,084 $ 91.331 S 180415 See Note to Requited Supplemenary Intonation. so Budgeted AmOunte Final to Annual Val Fe five odamai Final (Neptikn) S 60,296 $ 60,296 $ (1.039) 10,320 10,790 103 3,451 3,451 061 2,759 3,152 (3115) 1 2,073 1 2,073 11) 291 36,270 47,110 (11707) 46,456 46,635 (993) 3,488 z50 949 157,468 169,949 (12,811) 26,111 36,940 923 10,320 10,790 500 532 532 52 5.564 16,104 1.957 9,099 12,804 2,458 10,018 10,596 1.413 13,039 13,048 10 21.808 64,421 39,848 61.213 80,595 15.811 167714 3,_730 62972 (10,246) (66]81) 50,161 2,419 (52,482) $ 50.127 133 985 183,770 A 136,404 $ 130,288 81 City of Iowa City, Iowa Budgetary Comparison Schedule Budget to GAAP Reconciliation Required Supplementary Information For the Year Ended June 30, 2020 (dollar amounts expressed in thousands) Governmental Fund I ypes Acerual Modified Aeu'ual Bodect Bu5l4 AdInNImcN4 BaNi5 Revenuer $ 96,604 S (3,471 $ 93,133 Fxpendiwres 107,974 (8.438) 99,536 Net (11,310) 4,967 (6,403) Othe1rnancing sources and uses. net 11,539 (5,117) 6,422 Beginning Fund Btlances 88,915 2,834 91,749 Ending Fund Balances $ 89,084 S 2,684 $ 91,768 Enterprise Fund Tvper Accrual Acemtal Budget Basis Adlusnnems Basis Revenuer $ 59,534 S 2,499 $ 62,033 Expenditures 64,784 (4,452) 60.332 Net (5,250) 6,951 1,701 Other financing sources and uses, net 2,726 3,161 5,887 Beginning Ford Balances 93.855 287,980 381.835 Ending Fund Balance $ 91,111 S 298.092 $ 389,423 See Note to Regnnred Supplememary It lormation. 82 City of Iowa City, Iowa Note to Required Supplementary Information - Budgetary Reporting For the Year Ended dune 30, 20211 In accordance with the Code of Iowa, the City Council annually adopts a budget following required public notice and hearing which includes all funds, except internal service funds and agency funds. The budget basis of accounting is a modifed accrual basis. The annual budget may be amended during the year utilizing similar statutorily prescribed procedures. Formal and Icgal budgetary control is based upon nine major classes of expeadiwms known as functions, not by fund or fund type. These nine functions are: public safety, public works, health and social services, culture and recreation, community and economic development, geneial government, debt service, capital outlay and business-type. The legal level control is at the aggregated function level, not at the fund or fund type level. During the year, budget amendments increased budgeted revenues by $11,481,000 and expenditures by $68,016,000. The budget amendments wort primarily due to changes in the breadth and timing ofeapital improvement projects, which the City budgets in full during the initial year of the projects and amends future year budgets for carryover. 83 84 85 C it, oI Mea Ci p. 4m'a }fu 111I Ilk a nnJ Put Mind 'Ina, v S,ne;n or Mm Fur theI ,t Sr, lrvrvn' t Ill..d"do Wild Othee Phil 11X i(e v. 1hr.0 ii •Fe+r _5. I ov—IIXn w z.I'lv:. It c In 01 IId1kdC.M10 I I Of hL 11 If p for I'd IOr. II l} o Ce.1 11 1 P Lml o 2Ia en S I I 1lr 1 1 1 4OR f Gorr. rq..omeol "All II.Lo IIS—ll 113A 10l01Q 9114 P 64 131 vo Ill 11Jp oo Fmi k 10 11.0 x pocnLCL -OFllc •W JI OldOAIDSr. X hewcx L'III lm,e,Ll P2C OICmml .IS nI love Ill +r 111C PneoliIg Lrml%,,I Nod, C APIP PlAdoldif, orr IF ou IC 11 '1 olork dill LQ P PICICIdel Ill 1111% 1 ple HoloCr 1111111 A oll 85 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Municipal Fire and Police Retirement System of Iowa For the Last Ten Years (amounts expressed in thousands) 86 2020 2019 2018 2017 Statutorily required contributions S 2,808 $ 2,902 S 2,759 $ 2.682 Contributions in relation to the statutorily required contribution (2,8(18) (2,902) (2,759) (2,682) Contribution deficiency (excess) S - $ - S - S - City's covered payroll S 11,503 $ 11,155 S 10,743 S 10347 Contributions as a percentage of covered payroll 24.41% 26.02% 25.68% 25.92% 86 87 2016 2015 2014 2013 2012 2011 S 2.752 S 2,955 S 2,906 $ 2,353 $ 2277 S 1.654 (2,752) (2.955) (2,906) (2,383) (2,277) (1,654) S 10,019 $ 9,716 $ 9,645 $ 9,122 $ 9,197 S 8,310 27.77% 30.41% 30.12% 26.12% 24.76% 19.9017 87 City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Municipal Fire and Police Retirement System of Iowa Year ended June 30, 2020 Change's o/'henect ter"o, There were no significant changes of benefit terms. Chnnees olasezrrnoGons The 2018 valuation changed postretirement mortality rates on the RP -2014 Blue Collar Healthy Annuitant Table with males set -forward zero years, females set -forward two years and disabled individuals set -forward three years Qnale only rates), with generational projection of future mortality improvements with 50% of Scale BB beginning in 2017. The 2017 valuation added five years projection of future mortality improvement with Scale BB. The 2016 valuation changed postretirement mortality rates to the RP -2000 Blue Collar Combined Healthy Mortality Table with males set -back two years, females set -forward one year and disabled individuals set -forward one year Qnale only rates), with no projection of future mortality improvement. The 2015 valuation phased in the 1994 Group Annuity Mormltry Table for postretirement mortality This resulted in weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994 Group Annuity Morality Table The 2014 valuation phased in the 1994 Group Annuity Mormltry Table for postretirement mortality This resulted in weighting of 2/ 12 of the 1971 Group Annuity Mortality Table and 10/ 12 of the 1994 Group Annuity Morality Table 88 89 City of Iowa City, Iowa Required Supplementary Information - Schedule of the City's Contributions Iowa Public Employees' Retirement System For the Last Ten Years (amounts expressed in thousands) 90 2020 2019 2018 2017 Statutorily required contributions S 2,959 $ 2,912 S 2,696 $ 2.645 Contributions in relation to the statutorily required contribution (2,959) (2,912) (2,696) (2,645) Contribution deficiency (excess) S - $ - S - S - City's covered payroll S 31,345 $ 30,852 S 30,190 S 29,619 Contributions as a percentage of covered payroll 9.44% 9,44% 8.93% 8.93% 90 91 2016 2015 2014 2013 2012 2011 S 2.540 S 2,545 S 2,559 $ 2,442 $ 2327 S 1.877 (2540) (2.545) (2,559) (2,442) (2,327) (1,877) S 28,445 $ 25,495 $ 2054 $ 28,170 $ 28,833 S 27,013 8.93% 8.93% 8.93% 8.67% 8.07% 6.9517 91 City of Iowa City, Iowa Notes to Required Supplementary Information - Pension Liability Iowa Public Employees' Retirement System Year ended June 30, 2020 Chonees o bene it lei nts: There are no significant changes in benefit terms. Chanees of n.smi woons: The 2018 valuation implemented the following refinements as a result Oran experience study datal June 28, 2018: • Changed mortality assumptions to the RP -2014 mortality tables with mortality improvements modeled using Scale MP -2017. • Adjusted retirement rates. • Lowered disability rates • Adjusted the probability of a vested Regular member electing to receive a deferred benefit. Adjusted the merit component of the salary increase assumption. The 2017 valuation implemented the following refinements as a result of an experience study dated March 24, 2017: Decreased the inflation assumption fiour 3.00% to 2.60%. Decreased the as's'umed rate of interest on member accounts from 3.75% to 3.5% per year. Decreased the discount rate Rom 7.50% to 7.000,,. Decreased the wage growth assumption from 4.00% to 3.25%. Decreased the payroll growth assumption from 4.00"/o to 3.25%. The 2014 valuation implemented the following refinements as a result of a quadrennial experience study: Decreased the inflation assumption from 3.25% to 3.00% Decreased the assumed rate of interest on member accounts from 4.00% to 3.75% per year. Adjusted male mortality rates for retirees in the Regular membership group. Moved from an open 30 year amortization period to a closed 30 year amortization period for the UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience will be amortized on a separate closed 20 year period. 92 an 9n911 ay, 1011 ReI it S,ppI .lra.. let r.mi- Sohedmeor ( it ..;;e. la the ( it, Tmm OPre Lilmm.. Rolled Rml... ... wne, For the Lee( Throe Yeare [amuuma ctprc'ml ul Ihuuaandil Note GASB Smmomm No. 75 m9uiros mn pall I In600mliml m he pi in this ab1o. I11110.10,1111.11 atoll I0.lvrvcled i, wmpilcd. the City 1111 pimoet Intal ionleertli,wlmr,6nah lcb inlannwiao is a,ailablo. 0F.rnee,o/M1m. he 10.11.: Thos uwn111911, 11 111,11191, IA 11,11,fit tall,. Cry"" Chanpv+ In msumpli11, and Amnput, I cal the R4as kof,II m in Nc d .... uol a¢ cwbV li11d_ Tile k1lallap ala ma di,w11m aro; ailed i.. ea,h PmI1d. Yea I. ended Jrxe 30, 2020 266'4 Ye I.mdal J0100 10, 2019 3.511 Yom en d¢) Jwa 302019 a NT). Motldily [able hot be111 upd1111d om1r SOA RPH-'01TTOAA Dined MOI d](% (able Jthe 211R.11111w u,i1y Se91e NIP ?01711 SVA P,b 2010 Gi I leadmunl Weighmd mi Iable hilly 6ell io11111a.iip keel NAP '019 2r mauoral i SOA Puh-2010 P,hh,Sale, I Icodi ak' e nal bbralm Tablo lWly sing 6wla MP 2019 hurpublloa(my parliapan 1. and 6OA Pao2010Cunrinuilg9iaiw0 I budclMulWcighhed Mortality Table fidly III kiln:dkill 112 od 10%l P-2019 Mr zall I„ing xryaloC. Ta . Talar ... and rate, t...IPFRS ,i le... be,,,rqi lo be bwl h. 11.... Net, F II 1l R.ie.erit11nJdo l_ 2019 A IA..Ir.mRT _T Jinn 1 ..I nlFurn a1n11n..hall b.. pdmw rl kill.... he NIILI ke, aid rti..�R Sy e"L "I JI'll hio 1.2019 Aek'i LI 1n R.P1n. I calm m,e 1,erkit .alre hale Lee a,[killed to a11 h.ilm[ a to me 119lk , da,rCoal n,g h, 0 e l milk 11, m ml wm.wr, al, 014.9.,,. 93 8020 2019 1018 Sanity Gw S 413 S 553 $ ell, her oa`.a _ 297 245 DilL1nxebalo,rn espmaalnd III exp.n.nee (49e) 1161 (277) ( Ta>Lw In w,w'pa ulic [KI 115 9tl2 BnmG. pap.el6 X6411 194Y1 (174) No I hei la atal OPLB IIoGGty (251) 1 2Y 1118 Tom[ OPW Habit, paginninpafpa. H,NIY, 7.£90 6,412 TnnI OPFB 11 bill, end l(,ivu $ 6.627 $ a878 $ -,e9b Cilyt cnrerzdempl9yee ryaymll J 42,949 $ 42hi S 4Q9:: Total OPF B Ii w.i I It, Paleakage cl tmoW"mpl 11) 10 thhm11 1_0.1a- 111),F 18W4h Note GASB Smmomm No. 75 m9uiros mn pall I In600mliml m he pi in this ab1o. I11110.10,1111.11 atoll I0.lvrvcled i, wmpilcd. the City 1111 pimoet Intal ionleertli,wlmr,6nah lcb inlannwiao is a,ailablo. 0F.rnee,o/M1m. he 10.11.: Thos uwn111911, 11 111,11191, IA 11,11,fit tall,. Cry"" Chanpv+ In msumpli11, and Amnput, I cal the R4as kof,II m in Nc d .... uol a¢ cwbV li11d_ Tile k1lallap ala ma di,w11m aro; ailed i.. ea,h PmI1d. Yea I. ended Jrxe 30, 2020 266'4 Ye I.mdal J0100 10, 2019 3.511 Yom en d¢) Jwa 302019 a NT). Motldily [able hot be111 upd1111d om1r SOA RPH-'01TTOAA Dined MOI d](% (able Jthe 211R.11111w u,i1y Se91e NIP ?01711 SVA P,b 2010 Gi I leadmunl Weighmd mi Iable hilly 6ell io11111a.iip keel NAP '019 2r mauoral i SOA Puh-2010 P,hh,Sale, I Icodi ak' e nal bbralm Tablo lWly sing 6wla MP 2019 hurpublloa(my parliapan 1. and 6OA Pao2010Cunrinuilg9iaiw0 I budclMulWcighhed Mortality Table fidly III kiln:dkill 112 od 10%l P-2019 Mr zall I„ing xryaloC. Ta . Talar ... and rate, t...IPFRS ,i le... be,,,rqi lo be bwl h. 11.... Net, F II 1l R.ie.erit11nJdo l_ 2019 A IA..Ir.mRT _T Jinn 1 ..I nlFurn a1n11n..hall b.. pdmw rl kill.... he NIILI ke, aid rti..�R Sy e"L "I JI'll hio 1.2019 Aek'i LI 1n R.P1n. I calm m,e 1,erkit .alre hale Lee a,[killed to a11 h.ilm[ a to me 119lk , da,rCoal n,g h, 0 e l milk 11, m ml wm.wr, al, 014.9.,,. 93 94 Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds account for revenues derived from specific sources that are required to be accounted for as separate funds. The funds in this category and their purpose are as follows: Economic Development Fund — accounts for revenue and expenditures of economic development activities. Community Development Block Grant Fund — accounts for revenue from the U.S. Department of Housing and Urban Development's Community Development Block Grant programs. Metropolitan Planning Organization of Johnson County Fund—accounts for the financial activities of the metropolitan rural cooperative planning organization. 95 City of Iowa City, Iowa Combining Balance Sheet -Nonmajor Governmental Funds June 30, 2020 (amounts expressed in thousands) 96 Metropolitan Community Planning Developmem Organization 1-conomic Block of Johnson Development Grant Courtly Total Assets Bquity in pooled cash and Investments $ 760 $ 1 S 388 $ 1,149 Receivables: Property tax 478 - - 478 Imelest 7 - 1 8 Notes - 3.560 - 3,560 DUe f! 0111 ether govemmeNs 1_15 70 285 Total assets 1,24f $ 3,776 S 459 $ 5,450 Liabilities, Deferred Inflow of Resources and Fund Balances Liabilities. Acwunta taxable $ 12 $ So S 3 $ 6s Accrued liabilities - 6 __ 28 Due to other unds 161 161 Total liabilities 12 1_17 25 254 Debased undoes ofresourcee: Unavailable revenue: Succeeding year property taxes 446 - - 446 Cranes 54 54 Total deferred intl acts of resources 446 54 500 Fund balances. Restricted 1,374 3.505 434 5,313 Unassigned (58]) (587) Total fund balances 787 3.505 434 4.726 Total liabilities, defrred inllows of resource and fund balances $ 1,245 $ 3.776 S 459 $ 5.480 96 97 City of Iowa City, Iowa Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2020 (amounts expressed in thousands) Special Revenue Metropolitan Community Planning Development Organizilion Economic Block of Johnson Development Grant County Total Rev Propern taxes $ 3,772 S - $ - $ .1,972 Imeigovemmenral 14 _68 377 1,679 Ilsc ofmoncy and property 45 33 6 84 Miscellaneous 156 11 167 Total rercnu¢ 1851 1,457 394 5,702 Expenditures Cur ern. Community and cconomie development 1.914 1,442 667 4,023 execuc (deficiency) of revenues us, or (under) expenditures 1.937 IS (273) 1.679 Other Financing Sources (Uses) Transfers in U4 - 352 506 Transfers oul (2.282) (671 (2.349) Total other financing sources and (Uses) (2.128) (67) 352 (I 943) Net change in fund balances (191) (52) 79 (164) Fund Balances, Beginning 978 3,557 355 4,890 Fund Balances, Ending $ 787 $ 3,505 S 434 $ 4.726 97 98 Nonmajor Enterprise Funds Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar to a private business enterprise, and where the costs of providing services to the general public on a continuing basis are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic determination of rcvcnucs earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The funds in this category are as follows: Airport Fund accounts for the operation and maintenance of the airport facility. Parking Fund — accounts for the operation and maintenance of the `bn" and `off" street public packing facilities. 99 CITY OF IOWA CITY. IOWA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS June 30._'020 (amounts expressed in thousands) Airport Parking Total Assets Current assets L9uiry in poolul cash and invcsmant $ - S 3342 $ 1,342 Receivables'. Accountsand unbilled usai,c 24 39 63 Interest - 11 II Due tram othereovcurrents 840 1 843 I oral control assets 864 3395 4,259 N011cm'mnl assets: Restricted assets: bwluily in pooled rash and investments 107 1 108 Capital arca: Land 11,995 3,489 15.484 Boddings 54s8 41,64] 47,105 I mprovrntrna other than buildings 445 328 771 Machinery and r9ufpmrnt 316 1 b622 1,918 hdradiLectum 1].451 - 1],451 Awumulald depreciation (11,459) (23,160) (34,619) Crestoration in progress 153 153 Total nornureal asset 24.466 23,927 48,393 1'real assets 25,330 27322 52,652 Deferred Outflows of Resources Potion totaled coronad outflows 11 172 183 DPLB relaid drfc'rod outflows 3 44 47 bolder rel outflows of resources 14 216 23U Liabilities Content liabilities. Accounts payable 22 226 248 Contract payable 470 5 475 Accrued liabilities 4 57 61 Lntployu vested benefits 3 58 61 Due IU other funds 138 118 I oral currant liabilities 637 346 983 coconut ruu liabilities'. Liabilities payable from restricted assns. Deposit 8 1 9 Advances tram other funds - L174 1,174 Lmployce vested benefit 2 42 44 Net pension liability 48 744 792 Other post employment benefit obligation 12 211 223 l oral reconnect liabilities 70 2,172 2,242 1 oral liabilities 907 2,518 3,225 Deferred Inflows of Resources Potion related defa'red inflows 8 117 125 OPLB related drfa'red inflows 1 19 20 Total deferred inflows Ofresoorcrs 9 136 145 Net Position Net invesmsnt in capital asset 24,359 23,926 48,285 R soicted f m Franc lnprowamms 100 - 100 Unnesa'irnd 169 958 1,127 Total net position $ 24.628 $ 24,884 $ 49,512 100 CITY OF IOWA CITY, IOWA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION NONMAJOR ENTERPRISE FUNDS For the Year Ended lune 30, 2020 (amounts expressed in thousands) Airport Parking Total Operating Revenues: Charges for services S 371 $ 4,354 $ 4,725 Miscellaneous 2 63 65 Total operating revenues 373 4,417 4,790 Operating Expenses Personal services 85 1,822 1,907 Commodities 785 170 955 Services and charges 462 1,484 1,946 1,332 3,476 4,808 Depreciation 1,004 L258 2,262 Total operating expenses 2,336 4,734 7,070 Operating lass (1,963) (317) (2,280) Nonoperating Revenues: Loss on disposal of capital assets (189) - (189) Operating grants 896 3 899 Interest income 4 157 161 Interest expense - (345) (345) Total nonoperating revenues 711 (185) 526 Loss before capital contributions and transfers (1,252) (502) (1,754) Capital contributions 134 - 134 Transfers in 100 - 100 Transfers out (21) (21) Change in net position (1,()18) (523) (1,541) Net Position, Beginning 25,646 25,407 51,053 Net Position, Ending S 24,628 $ 24,884 $ 49,512 101 CITY OF IONA A CITY. IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE IF NDS 141'the Year Ended lune 30, 2020 (amaunls expressed in thousands) Airport Parking Total Cash Floss.s From Operating Activities Receipt, front eummers and mels $ 373 S 4396 S 4,969 payment to 111)111101v (808) (1,556) (2364) Paymerm' In anVlovees (81) (1,765) (L846) Netrash Mows fire )used for) opemtingactrvities (516) 1,075 559 Cash l9on's loom Nsmcapital l financing Activities Operating grants received 150 - GO Transfers fm other filed 100 - 100 Tmnsl'en m other funds - (15) (15) Adv nl from other fined 139 I38 Repayment of advancesm other funds (249) (249) Net cosh (lows hoot [used fur) noncapital nitrating enivitics 388 (264) 124 Cash Floe's From Capital and Related Financial Activities Capital lents lmd ved 54 - 54 Acquisition and enter octal of property and Nluipmem (135) (6) (141) Principal paid on bonded debt - (9,413) 19A13) Iomreat paid on boMed debt (376) (376) Net cath Il0cS used foreapital and related IFFNI tgaotiviICS (81) (9,795) 14876) Cash Flows From Investing Activities Inrorest on ievesnnents 6 211) 225 Net decrease in rash and cash equivalents (203) (8,765) (8968) Cash and Cash Equivalents, Beginning 310 12,108 12,418 Cash and Cash Equivalents, Ending % 107 S 3,341 e 3450 Reconciliation of operating loss to net cash Boas from (used IF operating activities: Operating loss $ (1,963) S (317) S 8280) Adusenents to reconcile operating lass to net earn the" tient ousel for) operating activities Depreciation expense 1,004 1,158 2262 Changsin. Receivables: ACCeoals and unbilled ueagc - (21) (21) Prcpald item 15 - 15 AcummS payable 424 98 522 Accrued liabilities I 9 10 Employee vested benefts - 37 37 Ner pension liability (4) (-8) (82) Deferral outilows nl1LwmcC4 _ 58 60 Defence iIll of resaurces 6 70 76 Other peat employment benefits asset obligation (I1 (39) (40) Total adjumnent; 1,447 1392 2.839 art cash floes treat (uwd for) operating activities $ (516) S 1075 S 559 Non ash Investing, Capital, and Financing Activities: Capital grants not act lccn'vcd $ 80 S S 80 Opaedng grant, nut yet arrived $ 760 S 3 S 763 102 Internal Service Funds Internal Service Funds account for goods and services provided by one department to other City departments on a cost -reimbursement basis. The funds in this category are: Equipment Maintenance Fund — accounts for the provision of maintenance for City vehicles, equipment and vehicle rental from a central vehicle pool, and two-way radios provided to other City departments. Central Services Fund accounts for the support services of photocopying, mail and overnight shipping provided to other City departments. Loss Reserve Fund — accounts for the property, liability, Workers' Compensation and health insurance premiums and claims activity for City departments- including the self-insured retention portion. Information Technology Fund — accounts for the accumulation and allocation of costs associated with telecommunications and data processing, including dtc operation and replacement of equipment. 103 Deferred OutDmvs of Resources Pasidn related dcfcned am0owS City of Iowa City, Iowa - 28 140 314 Combining Statement of Net Position 36 i I26 88 Internal Service Funds Tulin dcfarW uurllmvs 01 VSUurces 177 8 30 June 30. 2020 191 Liabilities 109 4 (amounts extoes'sed in thousands) 99 331 Current liabilities: Fquipatent Central I_o.. Infor nanon Accounts payable Mnlmmllancc soo lees R¢crve 21 Tcchnoldgy Ipial Assets AcoTmd liabilities 41 - 3,639 Current assets: ,]2N Employee vexed benefits 40 1 Gluby in pool) cash and InscslmrnG s 17,469 $ 779 4 16,989 5 3,313 4 38,350 Rmnwblcs. 3,946 99 4,414 Ndnc amnt liabind.,� lsseullh and unbilled usage - 143 143 bvttcet 59 168 11 240 Duc front mhcr govCal Ia is 42 - - - 42 Invcnloeies 515 - - - 515 Tnml current aaseta 1M85 781 1'0.100 3.324 39,290 Noncurrent assets_ IJO 703 1.665 Tdtallit ilieies Capital asters: 57 4,076 sw 6.099 Land 45 - u Buildings 1298 - - 183 1481 Impmwnenla mherthan buildings 50 - - 50 slach'mcryand uyuipmcnt 2114€ 119 19 1501 22]8] Ill 'pial uctore - - - 3,542 :342 Amtmulamd(No eciation (12,740) p3) (19) (1485) (14.317) Construction in progress 876 - - 881 Total noncurrent asses 10,699 46 - 3,746 14.469 Total assets 28,762 827 17,100 7,070 53.759 Deferred OutDmvs of Resources Pasidn related dcfcned am0owS 141 - 28 140 314 OPEB rclecd defacd outfIl 36 i I26 88 69 Tulin dcfarW uurllmvs 01 VSUurces 177 8 30 166 191 Liabilities 109 4 19 99 331 Current liabilities: Accounts payable 283 21 303 24 631 AcoTmd liabilities 41 - 3,639 45 ,]2N Employee vexed benefits 40 1 4 30 75 Toed cmTent liabilities 365 24 3,946 99 4,414 Ndnc amnt liabind.,� rrnpl9ru ve9ed beae9ls 1 3 el Net pension 1106111ty 593 19 115 554 1.281 OtIl poll employment benefit; Ilabllit\ 174 13 12 124 323 l deal ndnaursnt Bali lines 799 33 IJO 703 1.665 Tdtallit ilieies 1,164 57 4,076 sw 6.099 Deferred Imass sof Resources Pension Icluted dcfcnedland"s 9 3 18 88 202 OPEB related dcfvred in[loos 16 1 1 11 29 109 4 19 99 331 Net Position Net insemnent in capital assets 14677 46 - 3,746 14469 Lnmatncod 16,989 728 13,035 2,589 33241 Total net position 5 27,666 $ 774 $ 13,035 5 6,335 $ 47,810 104 105 City of Iowa City, Iowa Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended June 30, 2020 (amounts expressed in thousands) Equipment Cental Loss Information Maintenance ser"Ce, Rcsetve TechnoloGy Total Operating Revenues: Charges for services $ 6,670 $ 231 $ 12,113 5 1632 S 21,646 Miecenaneoae I6 I6 Total operating revenues 6.670 231 12,113 2,648 21,662 Operating Expenses: Personal scrviecs 1,127 44 1,083 2,480 Commodities 1538 23 - 660 2,221 Services and charges 629 113 1720 4X7 1 1,949 3.194 180 10,952 2,230 10,650 Depreciation 1,774 14 263 2,051 Total operating expenses 5.068 194 10,952 2.493 18]07 Opeating income noss) 1.602 37 1,161 155 1_.955 Nonoperating be rnues: Cain on disposal ofeapital assets 50 - 2 52 Operating grants I - - - I Interest income 341 13 315 44 713 Total nonopa'ating rcvamcs 392 13 315 46 766 Income (loss) before uansfers 1,994 50 1,476 201 3,721 Transfers in 528 - - 412 940 Transfers out (66) (66) Change in net position _," 50 L410 613 4,595 Net Position, Beginning 25.144 724 I L625 5,82 43,215 Net Position, Ending $ 27,666 $ 774 $ 13,035 $ 6,335 S 4),810 105 Cash Flows From Operating Activities Receipts from ruslomcrs and user, Payments to suppliers Puymeus to enploycos Net cash flows from operating a rrities Cash Hours From Capital and Related Financing Activities Acquisition and constiution ofpropedy and equipment Pmcceds from talc o1progeny Net cath (lows, weal for capial and reload nnanem,_aranroes cash Finv" From Investing Activities Interest on im-ttnecas Net Intense in cash and rash equivalents Cash and Cash Equivalents, Beginning Cash and Cash Fgoivalents, Local Reconciliation ofopervtiog income to net cash plans from operatingaclivilies: Operating Income Ad)ustmeme to reumcile operating inenme to net cash fro%sdoor operating activities'. Depreciation experce bangrt im ReQsoahles Accounts and unbilled usage Nut from other ' go>cromm�ts Auoarar payable Act need habitues Eni loym sexed benefits Net torsion l lability Deferred outRo.us of resources Deferred lndows ofresoares Otht post Carl brnclits liabilhy Total pull Net cash flows from operdnng acnvlM1u Noncash Ins'esring, Capital, and Financing Activities: Coup butens ofcapial assets Gum government and other C011t1'16ut1011s ofcapita I assets to goverment and others City of Iowa City, Idea (s) 166) (172) Combining Statement of Cash Flows 193 710 15,0751 Internal Service Funds 135 113 9 For the Year Lnded June 30, 2020 2051 3 (2.186) (anwunls expressed in thousands) (66) (170) (2.430) Equipment Central Loss Information 20 Maintenance Services Reserve Tcrhllologv Total (122) (114) 32 $ 6.658 $ 231 $ 12,212 p 2,646 5 21199 (2.054) (127) 00.563) 0.350) [14,094) 0.0941 (43) (224) (1,102) (2_443) 3,530 61 1475 196 5262 (2159) (s) 166) (172) (2.6o5) 193 710 15,0751 2 135 113 9 263 2051 3 (2.186) (8) (66) (170) (2.430) 3s9 16 305 55 735 1.103 64 1,914 81 3,567 15,706 710 15,0751 1 34,783 113 9 263 2051 3 S 2469 $ 779 $ 16.799 S 3.313 5' 38,350 $ 1,602 $ 31 $ 1,161 S Its S 2,956 1,194 14 113 9 263 2051 $ 528 A 49 - 149 (12) 940 (112) 113 9 84 (20.3) 3 8 1 15 9 93 (9) (1) 2 20 12 (39) (2) (Ip (122) (114) 32 6 35 D s8 3 10 41 118 (D (S) (6) Loss 24 314 41 2,301 5 3.530 $ 61 $ 1,475 S 196 S 5,262 $ 528 A - $ - S 412 S 940 $ 66 S - S 66 106 Agency Fund The Agency Fund accounts for as's'ets held by the City in a trustee or custodial capacity for other entities, such as individuals, private organizations, or other governmental units. The fund in this category is: Project Green Fund — accounts for donations that are received to plant and dewlap yards and lawns, both public and private, within Iowa City. 107 108 Cilc of to%a cies. larva Statement of changes in Assets and Liabilities AgenesFunds I ortis Year Luded June 30. 2020 (amount, expressed in thuasandr) Balanm Balance JOIV 1.2019 Incrcoses Dcercvscs June 30, 2020 Project Green Assets Fquiry In pooled cash and inaestments $ 121 $ 71 $ 102 S 90 leterca remivablc 1 - 1 - Tomlveem $ 122 $ 71 $ 103 S 90 Liabilities ACcoWaS payable $ 30 $ 10 $ 30 S 10 Fee toagency 9s bl 73 so Tocol liebllitia $ 122 $ 71 $ 103 S 90 108 Statistical Section Tabs Statistical Section This part of the City of Iowa City's comprehensive annual financial report represents detailed information as a Context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Financial Trends Page These schedules contain trend information to help the reader understand how the government's financial performance and well-being have ehan_eed over time. Revenue Capacity 116 These schedules contain information to help the reader as'ses's the government's most significant local revenue source, the property tax. Debt Capacity 126 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 132 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 134 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Utle.o othenrise Wiled, the information in these schedules is derived tram the comprehensive annual Jiaanciai repo; t tra the i dear( vcm. 109 110 cn of lm" cit bma III Pnsilion bJ CumPonenl 4 "HILH111 a pry ul III hi nT(L) n ..u. u a uuTHII -77 - LS,L LIT 111,11 S 294. T4 12Q 8vl i6 6Q 1 T nulbmin v it in Tat P+ Q (I- n, Q 1-4ol c ' a v taSp l F QVJIIT Q I!L t n18H ¢ _! Q zQILQQq) T 4Q '41 Prim I o Nal 1111LIQ110EIT III IAQI,das. Q Ili I Q a.SIYT 4R33o9 A!]l ti ro >YlH lJ _] JY > L TQI_7 JJ_1 RQ.. a) SLval IU 54 421 511 11 . T ._ ._4 1 I [It at II IT611 14 ILa lry IT L)%,L IMrvvkvQllell MIT, Tea• nil Fl bz Ceeml lW M al Elil,ml I,,Fld tlfl,ILI I 11L LLI­L1 v111 Lldllll Ji'111 1hL(Ip ICL Ili 111L t.I 111d40. [ L 111d (ITT all I TUnd atiJu4 I OI' i ill or It <n., a,.. 1 11 111' WILL, lid L11111LIL. I. I LILL L111 i L III L11"Inan, IN it 1111 "r 1 11 if a I Ill Ill 11% If ILL a IILE L\ PCI III Lill J aid Offif ( MINI, i NIL It JL i ill or It <n., a,.. 113 i ill or IF af.. NI nmkil,"i, n.t nsitil s9olilk" i P00I 1: I I IN ( liC )I It R I ( X LINCLIFFI%'I'Lid i IF I%' I 1 1111107111 11 FLHLI hill hi k LIRICII FUILL 1, IN I ill PCL%C FUILL Fill IN I',' I ILL "ILL"' Hil li H 1 1 113 Cllr of Imm Cir, Im,a Pond Dal mnatal (a, trot mental I till III Loth PoalI ,., [M4nli lam l.uvn I 1lM1uia ill myIml I I I I If incloirt, CN III I'lld 1.1 111.111 Ildll x —1110( n1. ):...r-edn1w., I I I I I.N r. I It I I It 3 11 111 L I I L 112 r N I I L L IINI k ,.N L Irr..m.., u.1a'edwL I I I •HI'_dl]. Ill cn%.1 e. I Nesrtdi ,newd>IN, tiri i mcna,, f Hod. 1,e...e er stk 1 .r5. 114 la 'v n_n v .5 n_.z _ Lion I.iA" I 44N3 11 .. row 2t^ , N4kli . INII fwml(und Nlalplolddblc N N- ) -N N 144> Will3Ux . _L xi ef_n 61 N41 64 (111 (1 V66 4ri-IN x —1110( n1. ):...r-edn1w., I I I I I.N r. I It I I It 3 11 111 L I I L 112 r N I I L L IINI k ,.N L Irr..m.., u.1a'edwL I I I •HI'_dl]. Ill cn%.1 e. I Nesrtdi ,newd>IN, tiri i mcna,, f Hod. 1,e...e er stk 1 .r5. 114 GJ of lune c Ill, toxo CM1unges in FIJI BN.noes. GI..... L FmNe II'd IO,i I fil id i....nu 115 i'll In 111 750 1 If 69, qq6 509 m'n 3u16i > s s „ "fil�fln, 1.. .ni +ss, Ir au 1x a �xx_ n �L.J ax9 e ("Ill I ,1,fil 1 6,165s > ., n . _. s9 401 11 LIP 1 1,99, s 1 s > i_ 1 4. Hill .m _ ., ), _, m.nI...1,roa ird 115 1 % I wal OFuon smav Tax "I' n110 eflcc( "7'109 ann nax alTcm;.e 1Moagh 624 r3 116 Cip of Imus Cirv. Ill General Government Tax Revenues by Source Loa Ton FiscalYaars MwI&W occmxl bio -l. ofiwcoonlmgl IdmOam. c.pic... in 1hnn.anaq Fiscal Fiscal Option Ulilill Year Prnnen ?ax Road Use Tax HispOlotel Tara5 lesTexl Franchise Fee Tnlal 3011 48,8]1 6,068 ]]6 8.913 S68 eS 441 3012 s1174 6}94 X11 8.644 81_2 68045 3011 s18]6 6?X9 XI3 X.ffiX 918 q9 (),I 2014 JI'll 1 6l4J 962 466 1011 ell MO 2015 51,056 . =41 I,(lq 907 62246 2016 53 fi28 8,:20 1p79 - 824 61151 201] 583)l 8,(,7' 1.13) - 909 69.123 2018 5MIO R,42- 1}4, - 9]6 ](L1N 2019 62,407 x,820 1,30 - 96s x3,494 2020 63.s'3 9.163 1.13s _ s84 r1 -Os 1 % I wal OFuon smav Tax "I' n110 eflcc( "7'109 ann nax alTcm;.e 1Moagh 624 r3 116 kill nflimv(bp 1".. 117 It"Ji \ Ilk 111 11 ell I be L, I 1 '4 41 Ilk, 4' 40 ell 41 11161 11 11111 11 le. NO 11111 1 4 1 411 1 1111111 11 111 4 I Oki RL 1110ld RkIbLk ILI (I ILL 1) Hi IV ii If jo 11 94 It I I A \A NA Tc ell Difek TIN RgL 117 Cit. of Imra Cia. lmva Propert3 Tax Ratex -Direct and Overlapping Cmernmeinx L,t,t Tet Firrel Vurs 1Po, SI 000 ameued,amm;om Fnoalvm, 2010611 mlve ()it It x01114 201415 201.16 116:17 7017.19 201019 datum 1 ... Year '_ON 1010 Nit xnn 2015 2914 =015 'mn 1017 1019 cts I !2220' $ 599994 $ 574909 5 631371' c 674159 $ 9911337 1 6-/140 1 68514) 5 65]594 5 649'_79 1m41C_C0111,11milty 5cbwl Netriel 614¢41 Fund s 1.14444 s 9.10000 $ 9.10000 s 9.10000 % 9.10000 s 34.10000 c 8 70000 c n 11111 b x.10000 $ 9.10000 Fmog. 1J'LI% LLIIIIIIIIII 11.1111111111 I x x x x a 1100000 106124 II(NNNH) 1100000 ILI lI lI lI til LLIIIIIIIIII Omer 11.1111111111 11.1111111111 Debt 5mi cc Fund 4,4399 464901 444294 4,02965 102410 4.13963 3r'811 3 x''W6 3.9.446 S 40,91519 .11946 1 993442 Cmploye<bene6u J5%146 15'MO 3.1'0_96 3.1Ira 1 38600 G 196331 1.11277 4.11915 1.14415 1.34415 184415 Cap..W 1,aON,.m,rh 900000 000000 00(0000 000000 000000 ()90000 xxxx) 01111) 000000 ()(0(0000 Omc, 293662 166669 170291 ISI'If I ei`6 1 IONW, 111044 1 044 151044 1s11µ4 TotalCily S 17x]5655 5 1184150 5 172694 S 16SOM, S [6 70570 5 1665096 b 165%38 $ 16.55505 6 10.18105 5 IxOW lob..„ ( maay I !2220' $ 599994 $ 574909 5 631371' c 674159 $ 9911337 1 6-/140 1 68514) 5 65]594 5 649'_79 1m41C_C0111,11milty 5cbwl Netriel 14699- 14590aa 140'324 1,16794 1369999 13,96771 139R9i5 11YR55 1-0,.Y469 1479097 KirkmW ()91_5(,6 0991 I O aclY 1 YA13 10754 106124 1051)i 113174 1_'0354 121111 Omer 012119 0;;110 0)1919 01113 0;3;6 0t'784 102410 333135 03059 ()17066 Toad Tan Rate S 40,91519 S 40'5369 x lie 4990? % ;x.66632 $ ,952756 s 368I11e S 36-4.r-.eS 38600 G S 39,09439 S 3900170 Snurte: "I ux L,.iw lislobin0o ( Mae Iov 1, c impel d I, Ibo lobomnCowry Audnar. Dare. Dam nal Indude rka e e role fur ouiadt,re Taxjri inthe 1ae,a cry crcnini mry Scheel Di,rri,l Arca 118 City of Iowa City, Iowa Levies and Collections Last Ten Fiscal Years (Cash basis of accounting) (amounts expressed in thousands) Source: Certificate of City Taxes and Johnson County Treasurers Office Vote: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some year will show Current Tax Collections in excess of the Total Tax Levied. t Delinquent tax collection is presented by collection year, mther than levy year, because information is not available from Johnson County Treasurer by levy year. 119 Percent of Total as Collection Total Tax Current Tax Levy Delinquent Tax Total Tax a Percent of Year Levied Collections Collected Collections Collections Levy 2011 47,799 47,826 Ito 1 8 47,834 100.1 2013 49,595 49.543 99.9 1 49,544 99.9 2013 50,407 50,139 99.5 3 50,142 995 2014 54307 49,835 99.1 1 49,836 99.1 2015 51,609 51,292 99A 3 51,295 914 2016 52,034 52.074 100.1 0 52.074 100.1 2017 55,330 55,331 100,0 0 55,331 100.0 2018 56,498 56,346 99.8 1 56,347 99.8 2019 59,174 59,252 100.1 2 59,254 100.1 2020 60,297 59,971 97.8 1 59,972 97.9 Source: Certificate of City Taxes and Johnson County Treasurers Office Vote: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and submitted to the City in the following month. Because of the month delay, some year will show Current Tax Collections in excess of the Total Tax Levied. t Delinquent tax collection is presented by collection year, mther than levy year, because information is not available from Johnson County Treasurer by levy year. 119 CIll of lona llll,loll a Yrini laNpOcOrs Lurt It Nit sswtl Ninc Vsra TFv Gannwrv.ali rnN In huuruWn 120 2011 3@0 ... .m,) 61 IONA I C,Llla LI I .Iu AN I 194 _ 2 1 19 _ .u2 - -N I,l,160 1 ua Im Mid \1111 1111 JLILIL1 N nvn_ PLUM11 (I,, Ill E a 11 , U I I I I - A4�1 _ ,... c1 - 1 r _ _ _60 1 10 Bi viol - - i. O YA Va ur.n N� , NA ,IIC ' 11.1,111 1111111 1 n 13 11111111 C J) N L ,II„nA IN N111 III ].,M1 m C ,pHNI_ - 120 icul AA' mor A, um twyr. City of Irma Cih. Irma Larger "a ter 55' spent Cuslamms 1 1601 Min 111 '.VII A h,,a,_ Rill, I'll "ItIae 106,1_6 1 L 9 e,9 x31 1.1 o,n 7A41 A IN AN 1 19 llSb e 04 1 1601 Min 111 i 1010"I" wzo A h,,a,_ Rill, I'll "ItIae 106,1_6 1 L 9 e,9 x31 1.1 o,n 7A41 A P 17 i 1010"I" City of Iowa City Sales History and Water System Charges Last Ten Fiscal Years Fiscal Water Sales Water System Year Cubic Feet Sold Chanes 3011 236,838370 7,661,898 2012 246,618,257 7,953,738 2013 254,616,773 8,194,467 2014 239,790,719 7,778,364 20151 240,423,612 9,161,522 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 2020 285,102,926 10,705,168 Sources: City of Iowa City Revenue Department Notes: IBeginning in March 2015, Water Sales by Cubic Feet Sold also includes unbilled usage. 123 Cmminwr Nam Unive¢hy of lora pronora eatable loea Cin Landfill \ oremna Adm ililtleion NN fieAl Center Muq Hospital Clgei Apanmams Dominium ]IT SIN, fonncdy Mwk IN Apes T'adwind lova CIRLLC %rmcrly Dolphin Lakc Oa6mII RUIh'inrne Randrnto c'Ile III m Corot Apt Robot, Dalry IIniseni, oC lowa'MayOowsr Aparai Toal Ie,,, S,Stein C hargn Sna s Cal if Iowa City Re.uim Drymrmwnt City of lona City, Iona Larger Sever S3 stem Chil Cmenl Yea mid Nin, Yvan Ago Chattels. Rank I'vIrcencei Clmree% Rank Percenmee S 2098,962 1 1646 % s 994,134 1 1595 ry 12111595 _ 993 1JM,899 2 9.16 179,17- 4 Lot 1x0,9e4 n 195 1193n6 = 094 108,603 4 O�x2 117x14 6 on 103593 = oe3 92,193 x OP 17,053 (. 062 79,654 9 OG'_ 65,401 OS'_ 103J90 080 52,xg3 x OA2 - - N/A 5L'64 9 OA2 - - N'A 51,746 10 OAI I62,147 3 1,21 - - N 72,997 10 05) - N 9 4,1]6,115 32]4 :i S 3.Y1560 3065 :n 5 I ',-48,595 114 S I' qW ]64 City of Iowa City, Iowa Sales History and Sewer System Charges List Ten Fiscal Years Fiscal Sewer Sales Sewer System Year Cubic Feet Sold Chi 2011 280,303,237 12,748,695 3012 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 12,02,203 2017 277,712,785 12,404,360 2018 283 246,320 12,524,540 2019 288.537,266 12,911,250 2020 279,106,456 12,503,764 Sources: City ofIova City Revenue Department Notes: Beginning in _Murch 2015, Sewer Sales by Cubic Feet Sold also includes unbilled usage. 125 126 Total Percentage Cilof larva City, loe'a of Personal Per Government meome' Ratios of Outstanding Debt by Type 156,942896 234 2,27e 144,974218 LestTen Fiscal Year; 2,103 124,461,284 Governmental Activities 1,775 Business -T) lie Activities 162 1,752 109,4O7,792 1 40 1,475 General capital General 116,853906 Fiscal Obligation Revenue Iman Obligation Revenue Capital v_ar Bond.: Bond: nide Bonds' Bonar Leave 2011 77,74+,957 - 210,784 1.110,849 7i,957306 - 2012 74,2256st - 210,784 1,483,471 69,059307 - 2013 57,688,803 2,614,644 210,784 1,182315 62,761718 — 2014 64,132510 2616368 210,784 886,157 S7,%S517 — 2011 59,411 2618,892 210,784 590,000 45566.903 — 2016 55,998392 2491,016 210,784 295,000 '19,951,661 — 2017 52,171 4 I5,I09,140 210,784 - 34,420,914 14,482714 2018 52,891524 15,039,264 210,784 — 29,095062 11 58105 2019 53,402638 14,902388 210,784 - 2/,154,710 9,413024 2020 55,007945 14_764,s12 210,784 - 16,786358 - Notes: For ilk regarding the city's oWnwnding debt can he found in the notes w [lie linancial statements. ' Bonds reported nct of rclatd] Prnniams and discounts. Population and pecsonal Interco information can be found on Page Lit. 126 Total Percentage Prima„ of Personal Per Government meome' capita' 156,942896 234 2,27e 144,974218 205 2,103 124,461,284 170 1,775 12414,736 162 1,752 109,4O7,792 1 40 1,475 99,946,g53 IS 1,127 116,853906 1 '4 1544 109,192939 1 is 1,442 99,084.544 1 04 1,1119 86,764599 088 1,115 City of Iowa City Iowa Ratios of General Obligation Bonded Debt' to Assessed Value and Net Bonded Debt per Capita Last Ten Fiscal Years (amounts expressed in thousands, except per capita) Notes 'General Ole ligation bonds, net of related premiums and discounts. 2 Population data can be found on page 132. 127 Gross General Less: Debt Net General Net Bonded Debt Net Bonded Fiscal Obligation Service Obligalion per $1,000 of Debt Year Bonded Debt Fund Balance Bonded Debt Assessed Value Per Capita 2011 80,875 13, 15 1 67,724 15.22:1000 982 2012 75,709 11,009 64,700 1431 : 1000 938 2013 58,871 6,527 52,344 11.34:1000 746 2014 65,019 6,872 58,147 12.46:1000 812 2015 60,011 7,052 52,959 10.97 :1000 721 2016 56,293 6,573 49,720 10.04:1000 670 2017 52,571 7,756 44,815 8.38 :1000 592 2018 52,884 8609 44,275 8.06:1000 585 2019 53,403 9,648 43,755 7.41 :1000 582 2020 55,008 9,724 45,284 7.67:1000 582 Notes 'General Ole ligation bonds, net of related premiums and discounts. 2 Population data can be found on page 132. 127 City of Iowa City, Iowa Computation of bit cc( and Overlapping Debt lone 30, 3090 bananas capteaud It thalrand. escort per capital 'Total General Percent Amount Lung -1 eon :Applicable ,Applicable Nameof Direct Debt to the City of to the( ity of Laval ental bat Outstanding Iowa Cin Inks Or City of Iowa City% Iowa ❑ecommuniry, School Dialrici Johnston County ClearCreek-Amann Commumay Schad Distinct Kirkwood Comm. college' Total Oserlapping Debt Tidal Direct & Overlapping Di S 69,983 10().00 % S 69,983 110,980 57 41 63,910 29X10 42.25 12,595 27,810 004 31 115,861 14.10 16,568 334A61 92,908 S 404,444 S 162,891 Lunn lean debt outstandinu includes only GO debt_ Net doew debt Iai gamnms & thsmoas Source: Johnson Counry Aadimr s Office. Note: Owilapping sorennners ale ]lose that coincide. a least t st part, with the geographic boundaries of me uit . This ,ohrdaie edarcaa the portion of the Demanding dem of moue overlapping govarn,en, thm i, booty by the eeidemN and humile,Ner of Iowa Circ This pi recoNiver thatwoe, considering the cp,: al ho, to issue and repay longterm debt the noire burden home by the residars and busneeses should be lakesa urn. Hustewr, dm does not imply tha .Dery taxpayer is a resident ad therefore res i pon ble tar rroayhtg thedebp of each osarlapping gowmailent. 128 IAS reported 1n the Annual Financial Repot In the Sere Vote: Under Iowa coda the citI S omstandom ;,meml obIig to n debt should not exceed 5 Letter of hut umeaW prel IvlLie 129 Citi of Iowa City, Iowa Legal Debt Margin Information' La.t felt Fi t:al YmrS lamonnle expri in tluermi sl Fiscal Year 2911 2012 2013 2014 2015 2016 300 2018 2019 2020 Total Ascesaed e.ulterior $ 0449,860 5 4520142 S 4,615.5'_7 5 2668}I9 S 482(648 S 7,95LI59 $ -.451,228 5 5494.459 $ 5,90].661 M 6,133.5]0 Debt Limit 222493 14007 230,776 233.416 241,332 247,528 26],511 274,723 295,3N3 306,679 C.0.Bands 80.575 75,320 58,550 id.420 59.340 55,150 51,645 51.880 53,470 53170 TIF Ra. Bonds - 2,655 2.655 2.655 2,525 15,200 15.065 14930 14,790 Lcuero of crtdit 1.616 805 538 1.943 °005 582 663 475 6113 - \mspeddle 211 ell 211 211 ell 311 211 ell 311 211 TIFcloaes 867 574 307 170 I8206 13,706 17,356 25.012 27,954 25977 Taal ret dela applicable to limlt 8.1,269 76910 61,161 69,399 N?413 71,174 85,075 92641 96768 94.249 Iigal debt margin S-1 39224 $ 149-097 s 169,515 5 164.017 5 158915 A 175.354 s 182,436 5 I81p80 S 199215 A 211,431 Tmu1 na debt uppliceble to the 111711a is a pencentineeof ddtllnil 3]43°/u 34 11'�"4 26 YN% 29 "bit 34.15°u 39.16°.: 31 tlf1"o 3iT_°u 3256% 3071% IAS reported 1n the Annual Financial Repot In the Sere Vote: Under Iowa coda the citI S omstandom ;,meml obIig to n debt should not exceed 5 Letter of hut umeaW prel IvlLie 129 City of Iowa Oh. Iowa Schedule of Revenue Bond Cuserage Lam Tell Freal Y.ab (amonms cxprewd in thousands) Fiscal Icar Net Racal Annual Debt serving Ended As allable for Ratio of June30 Revenue Expense_ Debt Striant PI sal Ine, est Iolnl COecoca Parking Descent' 2011 5399 v9cp e,469 420 391 NII 314 2012 4.945 3.034 1.911 500 339 839 228 AM 5.121_ 3_x49 IS73 515 324 839 1.63 2014 5.345 2969 2,396 530 308 838 286 2015' 5J,10 3,818 1,791 540 254 194 226 2016 wn 5531 3.693 1,648 IDU 66 1,101 1 6 2018 5X12 3]90 2,022 _514 S/6 3.100 465 2019 6.205 3,724 2,481 2.545 416 3,021 0,x2 2020° W aslenRun Treatment Ree anue' 20114 13,281 x,4-- 1.614 1 940 2,054 3,s94 2 110 2012 IIJTi 5.663 1s2 4.615 1.693 6,108 1.19 2013 11,301 5340 7,961 4.865 1541 6,412 1.24 2014 11815 5,708 ] 121 3,250 1 428 4a,18 1 52 2015 12620 6514 6,046 3.310 11115 4b15 119 2016 12681 651e 6,168 3520 1.115 4.695 131 2011 13363 6351 1p26 3.625 965 4,610 1 52 2018 IJ 181 6.622 6559 3.580 156 4.336 LV 2019" 12 548 4840 4108 4135 539 5014 1,68 2020 12911 coop 6551 2510 361 28T1 228 Nater Revenues 2011 x354 5464 2x90 ].110 902 2,012 144 '_012` 8,649 5,653 2996 1,200 861 2,061 1,45 2013` 9342 6,148 1,994 945 759 1,603 181 2014` µ61e 5618 2,795 1335 650 985 141 2015 b]1S 5b32 3,463 1.380 610 1.990 155 2016 9323 53x7 tout, 1.115 519 2,294 112 2017 Men 6,331_ 3,197 ]60 524 2,284 1,40 2018 9,838 4949 1889 Ii5 394 1,849 156 3019 IOIpI (,888 3,190 1510 280 1,790 1 78 2020 10,399 61 3.641 1.565 238 c03 2.02 Notes: Lxludex Jeprec']alion and latere,t. ' Include, tunneled and l ntelesl ofmrcnle bonds only. ' Pmk]nn Revenue bonds ratio of Net Revenue Aw]IaMe 16r Debt Serv]re'm"Tmal Annual Debt Service" xnyuiadit' be lout 125. ' ler 1 iel tlba' ue bonds Latin Revenue Available for Debt Serviw'tn'"IAaI Annual Ana��m Dem sad,ea �.rwainmmbe'at , Flu 1�a n 1 10 lm. ' Namr Rcvrnne bund, nnlo of Net Renane Avuibible for D.b1 Service" 10 "Towl Anneal Inch fCl' lt'd' r learned to be at least I.10_ 6 Rc undcd Rdglmc Ronds prod ale c,dudtol noun the p create l ofAnnunl Debi Soviet P.,Dinp Raenue bond' debased arc ezduded 0onvbe ptindlrel and In¢rest of Annual DebKawtice. "Rat]o ofCm'ua al excludes the amount called balk ofS26311 AM Parking called Fwse def sed isexcludwl from the tnncipal urd lntere,t of Annual Debt Scr,oc_ 130 City of Iowa City, Iowa 2011 3012 105,863 Schedule of TIF Revenue Bond Coverage 3,495 2013 Last Too Fiscal Year 31.86 3,489 2014 (amounts cxprcsscd in Nousmrds) 3037 Fiscal Taxable 141,518 29.79 Year Acluatian Available 2012DTIF 2016E TIF Ended Available for TIF Tax Increment Revenue Revenue June 30 Certification (1) Tax Rate (2) Revenues(31 Bonds Bonds 2011 3012 105,863 33.01 3,495 2013 109,518 31.86 3,489 2014 110,797 3037 3,365 2015 141,518 29.79 4,215 2016 156,898 3049 4,784 2017 195,411 30AI 5,943 2018 226.439 3034 6.970 2019 297,479 29fi6 8,822 2020 341,736 29,93 10,:28 Available Debt Total Coves 75 - 75 44.66 75 - 75 55.95 205 - 205 2330 204 273 477 12.45 207 384 591 11.61 205 384 589 14.97 207 384 591 17 31 ( I ) Total taxable valuation available for combination will decrease in fiscal year 2024-25 due to the retirement of the tax increment ofthe 2001 Amended portion of(he Urban Renewal Aren. (2) The tax increment rate in fiscal year 2013-14 reflects the loss ofthc local school district's instruction support Icvy (ISPL) of $.12405 due to recent legislative changes. I I F lax rate does not incl ude the S SM ID levy rate o f$2.00 per$ 1.000 o f val no. Starting in fiscal year 2012-13, a panion of the taxable valuation ccuiticd will be at the highsrate one to its location in the SSM ID. (3) The available tax increment revenues do not reflect on estimate for the portion ofthe available valuation that would be taxed at the highs' SSMID rate. 131 City at Imes Cit\, Imia Demographic and f commie Statistics 4101 Toi Cnlrnew Yaun 132 rercarua ( eleaaa, recall l rersnnw merege smual Ilnmlrlm meal Metall Year Population Iaeume' Income' Increase envolfa' Mme' ead,5 1011 69.101 6 694,129 4'94' T 11 136 a 4X 24140-,021 UI_ 20.152 ]161000 44.4`9 a`3 1!162 41 ]6]122Ile '1111 ]1,454 ]32',3'94 4>203 1 C 140E to 293201343 So14 _%31 ]]62,343 42,10% 421 14,162 1_ 6412`94.164 '015 23,492 51)35,119 4X,092 ^19 14,495 29 f3ar53.6N6 sm 145x2 X296,921 49,096 3,1x3 18186 1._ hi.Mlraf` IDP 25,090 9]5,X69 50"x19 3.51 14199 3.0 x%3.9:99x9 ole 25,696 9]39,04 53,390 4If 15,1114 2.3 954,51X416 '_019s 25,130 9559.242 55.133 34c 15.619 24 965,6'_8N90 ,(I Q' 2]x46 490ri90 52.110 362 1rlh! xi 60.-24119 Sou ntl Nnt .: 1 11 wulIle, 1cp lrumme -Ih. 1 x.101 1 .e 11114. 611111 11 a anal a5, r ,amwnnr 2x..I( atnnmye... r,Sennl IDvmcIsad I....*1111,,.w ,Ja..a I,,I,;pcm 1114,310111 Dart ane lnenl m;, ¢+chooln I hn.a uaall Sac &free Repocemr 10va Iieloil5ale free If lova Ua peulle 082x) 1'111x1yearaMiaa Jane 10 l flat r)and .119 amt C'I Van,11111comf, far arex11[6_ a;lahlLed ,p'l e%,Iam eaeen n ,. tIll020 A1+f 6 uc an. unI11l r11r leba -ro1er ..x10. sal Ipl'tleeb arl ar« Wean 4th qLLLVII"cpmtn'car --hblc.0 my Po(Ile l rplot011 ulnae 1."Lo C111111ag1unc30. 132 133 Cit% of loam Cip'. loam Full -lime Egrlivulenl On, Celli motion Employee by Function Lilt lM Fool Ymoa ILII -limo Lquiralat l..Iployaa as of luac30 134 2011 1011 2013 2014 2015 2016 1017 2018 2019 2020 vrmralate, Polim 9e ,n 103 1 O5 l05 m5 m5 Iis 107 1 O AniIIIoIshi 6 6 - - - - - - - - Rm 65 6w (04 W 64 64 64 64 I.P"Iiuo Swkw Gnd is ss 1555 LSS 13 ns 11ss 13.5 115 1 s 6 1 6 Publicskis I selink, Add, 7 1 Fin 9loeerIli yr 13.1 121 121 121 111 12 16 16 16 Ifi FInMR... Lie 114 04 0 4 R:% Culoureaid Rttrmri..I Pool, III Rw All I 11 2 1 1 1- 2 Pc, Lesion 1542 IS,T_ lid' 64_ 1542 1442 1542 H,]5 14 145 Pmks Ii 11 Is 13 it 11 16 16 16 16 mretn„ Can.lmy i 1 3 1 l 3 CRO Mamlrnance 3 I l- LibrI 4314 43ry1 4161 leis 4513 44]] 46.1] 46.1] 4611 46115 ecnlarCmmr 631 6.i 65 65 61 6 e] ] ] ] Cnm I.wiryand FJ440mW D...lopmrnl 91 9.1 e4 095 e 9 IRF In 6i 13.13 11.13 11 Is Omuul L'arommcnl (isC.00noi1 - ] 1 - - 1 CIll Clerk 4 4 4 4 4 44 4 4 4 it AvnmY 1. 56 gM1 S6 S6 15 5.5 9.n 5_s 51 Ill Matti ]5 6 6 ILLS I1)5 9 9 9 Peavnnm 4 4 4 i i 1 1 Hmrvni N s S 2 1 1 1 12 Finami 2624 1151 °i 4] 21 91 22 in 21 On 13.11 ^.11 .22A 22 _18 (iwmimeW R... dmg, 416 481 48l 493 VYi 511 411 5 4 Tmozii 56,25 56,25 Soplell RI Erno,sic Renellu 026 055 055 0.55 0.55 0.55 (55 1155 O.ii 0.55 Flnod Mlrion", (:mod 1 fi 1 R C..mmumly De.ewi 3.X3 3,%1 3.11 _.I, -1% 2.X3 - - - - Ilk,,ti NPmamm R_ Fat Engineering 4.15 4.15 415 415 4 l 4.3 Sr¢ad 'S_ . _5 . 2`5 . S _ r6 _ . _5 . i9 29 29 MPe1C IPonnerly111cl 6,6 6 5.6 ib 5.6 a] 4,] 4.] o_ 5' Other ilose,lie 1I Ifi_ DELLE Likrnln DmdaFment I I I - - - - - - - ('opilolPmlcc'dAdl idlwion' 1 5 6 6 5 4 I..rttoalS l"lllmlda Inti, vnn Ilvbmlyy II.} 118 It%6 986 90 986 48 ILL% 98 98 Ill ..ionet 1116 II16 1(.15 ItllS IR15 Ill _s 10,15 1615 IQH IRS Ccnoul 56Ciav 1115 111.5 0 -6 ()S 05 115 01 (.5 (.5 OS R6k k1sna at11l 1.% I Y I I R I F 1.% I i 18 LS Pool,we, Type Amotel Pdkiue 31_e 3275 222} 26'_5 2615 13.11 1_1 6' 2163 21.3% 1163 Mw.Tmnaill 51.15 51.'5 51 Is 51.11 54.63 53 is 53 IN Wa%I w¢Truumain S6 S4 T 4 34 '_411, 216` SA 16 263 U'nNr e 1195 iel i 1195 -26 e 11 75 S ' 'S N5 3 1'AI 15%5 X_ in 31I l 115 }15 11.16 1J 163 Alrl•nn I 75 175 I I I I I I I till, 3iiovidool 569 66} 6(d 661 S61 Smrmnatol I1 21 21 2l 1 3fi '_.1 15 1e HnwiM soon onry Is Is 1115 11.1% 1' 19 IRl9 111.19 9fi 96 9.5 95 Total 613,7 61174 (11,91 615.16 60](( 5)8y3 9A81 60I,XY W1511 60811 scurcei Cils'a HnaOcial Plilt 'Reellinsn in Fv 11. mnmal seraia„Heli u..dn Poria Ha9inninN In FY 11( Ommiml ni Div k . .... 1, 1, ban mortalWm Fin "'Is m( ity V4a11,ilor HCooiil io F V' 11 Tumit mm..mud fnL IF' Cel rvl Fwul to an LIILIT acFood 4Roc ntYl6.(aMcaas it,, oil bum an[i... e Pund m tilt Genrml l 0nd °Bissell �n R' IL( still Rr,,IQ,t Adhil ki Intel Omvry m oxd N F I I} I I se I I I Is 134 Cil) III Imre (if%I I'ma Operalina Indicators L} ranclion Lm TvT Lin'al @0111 135 2011 2012 21113 11114 0115 2016 2017 MIN 2119 20111 9160. s11..f 110. ph,niuil wvv 6590 5911 4,46N a7Iz5 5.165 43N2 AIN" L I r- - N , OM ..401 m � _499 v1N 1 _6 yx9 _46 n A5 ti xe_ N M1 " LL rtd 1.515 S py ]G INN1ON, 6016 M199i 6,'49 SSIS LI1101 IwFtitimw umtluacJ I%116 Ip]II IAJI 1 31P3 1911) ..J.V N]i II61 111 I]00 j,- Twiom ...... I (N,91. 96,1 1- aK9n) LG GNG 6s 19E 1',149 6301 510VL Nl.i]II 40.114_ raDlul Y....... "1901.13 ri 101-N_N IN4 1MI, 9,6 IN 4N N,3=. TpT 1090 N� MaemmmJ.1111.1vuryIIr iiRan µ11111a 41.1 41.1 41.1 41.1 411 4T 42I 433 4;1 411 N 1m1cron farn'v II..mm .01010119 23527 . 529 '_4059 24159 2412 SONS S 4fu 2(1069 IN2IN .6 5.6 V UDIIIYawiou.�nuumPli11n Il mi11iOR Nl Nll 551 549 554 Al <i] S?2 5511 5N4 569 59? 501112101"L"' 2µ.i ly 11f 1111Ilion yL1111a 16.1 16 7 IN. IL. Ilil Ilii 16 2 16.1 16 7 16.7 CLL141111111hl CYon'+Ol.uwm � N ( a�WI 1441 14N9 1491 1491 1419 1415 14'_5 110 1471 144N 11111301'15 15 14 14 H in6O 156a0 204 '_02 135 I I 1 1 I [16 IJ9 ]IN T11ml Cunon.v+ HSu '_S.TU 26.111 2NAVN 24fi4- >,I IN =,_)N 26JN2 26dm '6N Ss 0111111 um6ium ln11rc 11920 Nolo1 - FB M1I IIf47 .9611 16111 16 1 NO ilmaa¢c t2969 tL Y35 8fl 5956 9.160 910 Y4]6 06H Y.694 A9NY J 651 L,lar0 1'1 L"N 14 6_ 14N,953 1114411 1151124 1X114_ 12(07. ours 140.65N 127 IN- IINzif) 5rums 5-11,11111 L11111110111.. NI 'rv11l.6..eIN LA1111L1,11 l_ I 2000 ea„.. .,. 1,IIoLI 'x IN' rze111e .-:- fol ro1f,.. 135 136 Cit, ul hun cit hl (slufa laar num, 2013 2G14 2015 2011 2019 2G20 '0 12 2016 2GI, 20 1 I'd LLuvumn ll 40 40 40 40 40 40 40 40 40 di ILL rL I Ll Full it I .md+i6 136 Compliance Section Tab gBohnsack & Frommelt LLP Certified Public Accountants Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards To the Honorable Mayor and Members of City Council City of Iowa City, Iowa Iowa City, Iowa We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities. each major fund, and the aggregate remaining fund information of the City of Iowa City, Iowa, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 8, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City of Iowa City, Iowa's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Iowa City, Iowa's internal control. Accordingly, we do not express an opinion on the effectiveness of City of Iowa City, Iowa's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. Amaterial weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies- Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 137 Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Iowa City, Iowa's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Comments involving statutory and other legal matters about the City's operations for the year ended June 30, 2020 are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the City. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretations of those statutes. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Iowa City, Iowa's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Iowa City, Iowa's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. &An4&4, e. � � bt P Moline, Illinois December 8, 2020 138 BBohnsack & Frommelt LLP Certified Public Accountants Independent Auditor's Report on Compliance For Each Major Federal Program and On Internal Control Over Compliance Required By the Uniform Guidance To the Honorable Mayor and Members of City Council City of Iowa City, Iowa Iowa City, Iowa Report on Compliance for Each Major Federal Program We have audited City of Iowa City.. Iowa's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of City of Iowa City, Iowa's major federal programs for the year ended June 30, 2020. City of Iowa City, Iowa's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs, Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of City of Iowa City, Iowa's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Iowa City. Iowa's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However.. our audit does not provide a legal determination of City of Iowa City, Iowa's compliance. Opinion on Each Major Federal Program In our opinion, City of Iowa City, Iowa complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. 139 Report on Internal Control Over Compliance Management of City of Iowa City, Iowa is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of Iowa City, Iowa's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Iowa City, Iowa's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. &load &4, tE �s vnt nu� u P Moline, Illinois December 8, 2020 140 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards Year Ended June 30, 2020 Housing Voucher Program Cluster. Section 8 Housing Choice Vouchers Section 8 Housing Choice Vouchers Mainstream vouchers Broader Housing Voucher Program Cluster Public Housing Capital Fund Public Housing Capital Fund Total U.S. Department of Housing and Urban Development U.S. Department of Justice Direct Corona Virus Emergency Supplemental Funding Program Bulletproof Vest Partnership Program (Continued) 14 871 14 871 14.879 14 872 14.872 16 034 16.607 141 IA022AF - 864 Federal Pass Through Passed Total IA022DV0001 Federal Grantor/Pans-Through Grantor/ CFDA Entity Identifying Through to Federal 55,083 Program Title or Cluster Title 131 880 Number Number Suboduplent6 Expenditures U.S. Department of Housing and Urban Development Direct Community Development Block Grants (CDBG)/ Entitlement Grants Cluster_ CDBG/Entitlement Grants 14218 B -18 -MC -19-0009 3 268215 $ 438,784 CDBG/Entitlement Grants 14.218 B -19 -MC -19-0009 37856 272,923 CDBG/Entitlement Grants 14.218 B-20-MC-19-OD09 1,108 Subtotal CDBG/Entitlement Grants Cluster 306,071 712,815 Home Investment Partnerships Program 14.239 M -17 -MC -190205 205.540 215,997 Home Investment Partnerships Program 14.239 M -18 -MC -190205 351.327 475,515 Home Investment Partnerships Program 14239 M -19 -MC -190205 140.111 198,161 Home Investment Partnerships Program 14239 M -20 -MC -190205 17.038 37,980 714016 927,653 Public and Indian Housing 14.850 IA022-00000120D - 81 Public and Indian Housing 14.850 IA022-00000118D - 422 Public and Indian Housing 14.850 IA022-0000012000 - 244 Public and Indian Housing 14.850 IA022-00000119D - 88,634 Housing Voucher Program Cluster. Section 8 Housing Choice Vouchers Section 8 Housing Choice Vouchers Mainstream vouchers Broader Housing Voucher Program Cluster Public Housing Capital Fund Public Housing Capital Fund Total U.S. Department of Housing and Urban Development U.S. Department of Justice Direct Corona Virus Emergency Supplemental Funding Program Bulletproof Vest Partnership Program (Continued) 14 871 14 871 14.879 14 872 14.872 16 034 16.607 141 IA022AF - 864 IA022VO 9469,048 9.469,912 IA022DV0001 95,380 9.565,292 IA05P022501-18 - 76,897 IA05P022501-19 55,083 131 880 2020 -VD -BX -1235 2019-BUB%19096333 1,020.087 11 515,295 788 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards (Continued) Federal GrantodPass-Through Crandall Program Title or Cluster Title U.S. Department of Justice (Continued) Indirect. Pass-through International Association of Chiefs of Police, Inc Crime Victim Assistance Docrotionil Grants Pess4hrough Iowa Department of Justice Violence Against Women Formula Grants Violence Against Women Formula Grants Passthrough Iowa Governor's Office of Dmg Control Policy Public Safety Partnership and Community Policing Grants Public Safety Partnership and Community Policing Grants Federal Pass Through Passed Total CFOA Entity Identifying Through to Federal Number Number Sumecioients Exoenditul 16.582 IACP-2018-7586-04 $ 4,112 $ 68,809 Total U.S. Department of Justice 16.588 VW -1904 -OJ - 16,770 16.588 VW -2042 -LE Direct 64,128 Airport Improvement Program 80 898 3-19-0047-028-2020 - 361,166 16.710 18 -CAMP -06 9,437 15,670 16.710 18 COPS Heroin 03 6,166 12,314 Airport Improvement Program 20.106 15,603 27,984 Airport Improvement Program CARES Act COVID 19 20.106 Edward Byrne Memorial Justice Assistance Grant 16738 17 -JAG 304034 68,551 102,827 Total U.S. Department of Justice 88,266 283,186 U.S. Department of Transportation Direct Airport Improvement Program 20.106 3-19-0047-028-2020 - 361,166 Airport Improvement Program 20.106 3-19-0047-025-2019 - 150.480 Airport Improvement Program 20.106 3-19-0047-026-2019 - 86,380 Airport Improvement Program 20.106 3-19-0047027-2020 - 5,287 Airport Improvement Program CARES Act COVID 19 20.106 3-19-0047-029-2020 69,000 672 313 Federal Transit Cluster: Federal Transit Formula Grants 20.507 IA -2020-029-01-00 - 700,000 Federal TransitFormulaGrants 20507 IA -2020-016-01-00 1752,119 Subtotal Federal Transit Cluster 2,452,119 Indirect Passthrough Iowa Department of Transportation Highway Planning and Constmcfion Program Cluster: Highway Planning and Construction Program 20205 BROS-3715(663(--8J-52 - 130620 Highway Planning and Construction Program 20.205 TAP -U-3715(665)--81-52 - 250,782 Highway Planning and Construction Program 20.205 NHSX-0015(120)5H-52 302,378 683.780 Passthrough Iowa Department of Transportation and Metropolitan Podding Organization of Johnson County Highway Planning and Construction Program Cluster: Highway Planning and Construction Program 20205 20MP0-MPOJC 184960 Subtotal Highway Planning and Construction Program Cluster 668 740 Metropolitan Transportation Planning and State and Non - Metropolitan Planning and Research 20.505 2TMPO-MPOJC 45.040 (Continued) 142 City of Iowa City, Iowa Schedule of Expenditures of Federal Awards (Continued) Year Ended June 30, 2020 Federal Pass Through Passed Total Federal Gramor/Pecs-Through Grantor/ CFDA Entity Identifying Through to Fai l Program Title or Cluster Title Number Number Subrecisents Expenditures U.S. Department of Transportation (Continued) Indirect: Pass-through Iowa Department of Transportation'. Transit Services Program Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 IA-2020-001-00-SFY20 Pass-through Iowa Department of Public Safety/ Governor's Traffic Safety Bureau Highway Safety Cluster: National Priority Safety Programs 20.600 PAP 19A02-MORT, Task 11 National Priority Safety Programs 20.600 PAP 20 402-MORT, Task 18 Subtotal Highway Safety Cluster Total U.S. Department of Transportation U.S. Department of the Treasury Indirect Passthrough Iowa Department of Revenue CARES Act- Coronavirus Relief Fund COVID 19 21.019 CARES Act Funding U.S. Department of Homeland Security Indirect. Pass-through Iowa Homeland Security and Emergency Management. Disaster Grants- Public Assistance (Presidentially Declared Disaster) 97.036 FEMA DR 4483 -IA Total Expenditures of Federal Awards (1) Total CFDA 20.205 $868,740 See Notes to the Schedule of Expenditures of Federal Awards 143 16388 4.188,]4] $ 1,108,353 $ 1],]32,450 City of Iowa City, Iowa Notes to the Schedule of Expenditures of Federal Awards Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of the City under programs of the federal government for the year ended June 30, 2020. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the entity. Note 2. Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the modified accrual basis of accounting for governmental funds and accrual basis of accounting for proprietary funds. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures of federal awards are recognized in the accounting period when the liability is incurred and has met the eligibility criteria of the federal grant. Revenue from federal awards is recognized when the City has done everything necessary to establish its right to the revenue. In the governmental funds, revenue from federal grants is recognized when the revenue is both measurable and available. In proprietary funds, revenue from federal grants is recognized when it is earned. Pass-through entity identifying numbers are presented where available. Note 3. Indirect Cost Rate The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 144 City of Iowa City, Iowa Summary Schedule of Prior Audit Findings �r 1 �III�� CITY OF IOWA CITY 110 ml I .101,, imp Slrrul va Clt% 10"a _°in-1826 (3 191 356-5000 6191 336-5009 1.A% nu„ logo% org Corrective Action Plan or Status Findings Relating to Federal Awards: 2019-001 The City has inadequate documentation of pre- Corrected. inspections and post -inspections performed on homeowner occupied rehabilitation projects. 145 City of Iowa City, Iowa Schedule of Findings and Questioned Costs Year Ended June 30, 2020 I. Summary of the Independent Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: • Material weakness(es) Identified? • Significant deficiency identified? • Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: • Material weaknesses) Identified? • Significant deficiency identified? Type of auditor's report issued on compliance for major programs: • Any audit findings disclosed that are required to be reported in accordance with 2 CFR 201 Identification of major programs: CFDA Number Name of Federal Program or Cluster 21.019 CARES Act- Coronavirus Relief Fund COVID 19 Highway Planning and Construction Cluster: 20.205 Highway Planning and Construction Federal Transit Cluster: 20.507 Federal Transit- Formula Grants Unmodified ❑ Yes 0 No ❑ Yes ❑ None Reported ❑ Yes 2 No ❑ Yes ❑ No ❑ Yes ❑ None Reported Unmodified ❑ Yes ❑ No Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? ❑ Yes ❑ No (Continued) 146 City of Iowa City, Iowa Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2020 II. Findings Relating to the Basic Financial Statements as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards A. Internal Control No matters reported. B. Instances of Noncompliance No matters reported. III. Findings and Questioned Costs for Federal Awards A. Internal Control for Federal Awards No matters reported. B. Instances of Noncompliance No matters reported. IV. Other Findings Related to Required Statutory Reporting IV -A-20 Certified Budget - Expenditures for the year ended June 30, 2020 did not exceed the amounts budgeted. IV -13-20 Questionable Expenditures - No expenditures were noted that we believe may not meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979, IV -C-20 Travel Expenses - No expenditures of City money for travel expenses of spouses of City officials or employees were noted. IV -D-20 Business Transactions - No business transactions between the City and City officials or employees were noted. IV -E-20 Bond Coverage - Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to insure that the coverage is adequate for current operations. IV -F-20 Council Minutes - No transactions requiring Council approval which had not been approved by the Council were noted. IV -G-20 Deposits and Investments - No instances of noncompliance with the deposit and investment provisions of Chapter 12B and Chapter 12C of the Code of Iowa and the City's investment policy were noted. IV -H-20 Revenue Notes - There were no instances of noncompliance with revenue note provisions. IV -1-20 Annual Urban Renewal Report - The annual urban renewal report was properly approved and certified to the Iowa Department of Management on or before December 1. IV -J-20 Payment of General Obligation Bonds - The City appears to be in compliance with Chapter 384.4 of the Code of Iowa. 147 148 Cii1i a(lonn Cit Johaww Coeenm lmrze 5/ 1,325,000' GenerzJ 0hh,,s iew rtnnA+, Surer 20'_I APPENDIX B DESCRIBING BOOK -ENTRY -ONLY ISSUANCE L The Depository Trust Company ("DTC"). New York, New York, will act as securities depository for the Bonds (the "Securities"). The Securities will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully - registered Security certificate will be is's'ued for Ouch issue Of the Securities, each in the aggregate In amount Of such issue, and will be deposited with DTC. 1 DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code. and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for ONer3.5 million is's'ues of U.S. and non -U.S. equity is'sues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users or its regulated Subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a S&P Global Ratings rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at tvta¢.dtceeom. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest Of each actual purchaser of each Security (`Beneficial Owner') is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation Onto DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements orthcir holdings, from the Director Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use ofthe book -entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & CO., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge ofthe actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. B -I Cii1i a(lonn Cit Johaww Coeenm loirze SI 1,325,000' GenerzJ ODli aiiew rtnnA+, Soo(, 20'_1 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that topics oPnoticcs be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures- DTC mails an Omnibus Proxy to the City as soon as possible after the retold date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listingattached to thcOmnibus Proxy). S. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in' an cut name," and will be the responsibility of such Put ticipaut and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions- and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to any Tender Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to any Tender/Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be devoted satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book - entry credit of tendered Securities to any Tender/Remarketing Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained. Security certificates are required to be printed and delivered. 11. The City may decide to discontinue use of the system of book -envy -only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the City be] icvw to be reliable, but the City takes no responsibility for the accuracy thereof, B-2 Ciro0 k... a Cie. Jobna"v Conn, biro SI 1,325,000' GenerzJ 0hii ri irw rtnndo Su itt 20'_I .APPENDIX C DRAFT FORM OF BOND COUNSEL OPINION Moines & Cooney, P.C. Attorneys at Law 4 AHLER5 COONEY 100 Court Avenue, suite coo is " _� Des Moines, Iowa 50309-2231 Panel 515-243-7611 Fax: 51 524 3-214 9 www.ahlerslaw.cont DRAY I We hereby certify that we have examined a certified transcript Hillis proceedings of the City Council and acts ofadminisuative officers ofthe City of Iowa City, State of Iowa (the "Issuer"), relating to the issuance of General Obligation Bonds, Series 2021, by said City, dated , 2021, in the denomination of $5,000 or multiples thereof, in the aggregate amount of S_ (the "Bonds"). We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion as bond counsel. As to questions of fact material to our opirl we have relied upon representations of die Issuer contained in the resolution authorizing issuance of the Bonds line Resolution") and In the certified proceedings and other certifications ofpub] ic officials furnished to us, without undertaking to verify the same by independent investigation. Based on our examination and in reliance upon the certified proceedings and other certifications described above, we are of the opinion, under existing law, as follows: L The Issuer is duly created and validly existing as a body corporate and politic and political subdivision ofthe State of Iowa with the corporate power to adopt and perform the Resolution and issue the Bonds. The Bonds are valid and binding general obligations of the Issuer. 3. All taxable property in the territory of the Issuer is subject to ad valorem taxation without limitation as to rate or amount to pay the Bonds. 'taxes have been levied by the Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual tax Icvy the principal and interest coming due on the Bonds to the extent the necessary funds are not provided from other sources. 4. interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, The opinion set forth in the preceding sentence is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that the interest thcrmn be, and continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for fcvleral income tax purposes retroactively to the date of issuance of the Bonds, ollaBadly -1eoGamaay a sadly -1993 sale a sumo -I 991 Stan. Pory Be Is Snelasumneer- 1914. Bandar oarnenar. Ahlea A Cooney -1050. Amara. Cooney. Di Pi AH bee uapae a sroeo-1wa Aman. Cooney. ooa,auar, Hay ne• wl a amee, Pc.—IS90 GI C'0a(lonn 0AJohnxw toeenm /pilo 5/ 1,325,000' GenerzJ 01)hgruiew rtnnA+, Soo(, 20'_1 ,2021 City of Iowa City, State of Iowa $ General Obligation Bonds, Series 2021 Page 2 We express no opinion regarding the accuracy, adequacy, or completeness of the Official Statement or other offering material relating to the Bonds. Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein. The rights of the owners of the Bonds and the enforceability of the Bonds are limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' rights generally, and by equitable principles, whether considered at law or in equity. This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. 01860207 U6714 Respectfi 11v submitted, -2 C'0a(lonn Cis. Johaww Coeenn, foll a 5f 1,325,000' GenerzJ ODfigyuiew rtnnA+, Soo(, 20'_1 .APPENDIX D DRAFT CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Iowa City- State of Iowa (the "Issuer"), in connection with the issuance of $_ General Obligation Bonds, Series 2021 (the "Bonds") dated _2021. The Bonds are being issued pursuant to a Resolution of the Issuer approved on , 2021 (the "Resolution"). The Issuer covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate: Interpretation. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15e2 -12(b)(5). This Disclosure Certificate shall be governed by, constmed and interpreted in accordance with the Rule, and, to the extent not in conflict with the Rule, the laws of the State Nothing herein shall be interpreted to require more than required by the Rule. Section 2. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Financial Information" shall mean financial information or operating data of the type included in the final Official Statement, provided at least annually by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Business Day" shall mean a day other than a Saturday or a Sunday or a day on which banks in Iowa are authorized or required by law to close. "Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in writing by the Issuer and which has tiled with the Issuer a written acceptance of such designation. "Financial Obligation" shall mean a (i) debt obligation: (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with S.E.C. Rule 15c2-12. "Holders" shall mean the registered holders of the Bonds, as recorded in the registration books of the Registrar. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal Securities Rulemaking Board, 13001 Street NW, Suite 1000, Washington, DC 20005. "National Repository" shall mean the MSRB's Electronic Municipal Market Access website, a/k/a "EMMA" (emma.msrb.org). "Official Statement" shall mean the Is'suer's Official Statement for the Bonds -dated , 2021. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. D-1 Cii1i a(lonn Cit Johaww Coeenn, foirze 5f 1,325,000' GenerzJ Ohii aiiew rtnnA+, Sur(, 20'_1 "Rule" shall mean Rule 15c2-12 adopted by the Securities and Exchange Commis's'ion (S.E.C.) under the Securities Exchange Act of 1934, and any guidance and procedures thereunder published by the S.E.C., as the same may be amended from time to tune. "State" shall mean the State of Iowa Section 3. Provision of Annual Financial Information a) The Is's'uer shall, or shall cause the Dissemination Agent to, not later than two hundred ten (2 10) days after the end of the Issuer's fiscal year (presently lune 30th), commencing with information for the 20202021 fiscal year, provide to the National Repository an Annual Financial Information filing consistent with the requirements of Section 4 ollhis Disclosure Certificate. The Annual Financial Information filing must be submitted in such format as is required by the MSRB (currently in "searchable PDF" format). The Annual Financial Information filing may be submitted as a single document or as separate documents comprising it package. The Annual Financial Information filing may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements ofthe Issuer may be submitted separately from the balance of the Annual Financial Information tiling and later than the date required above for the filing of the Annual Financial Information if they are not available by that date. If the Issuer's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). b) If the Iss'uci is unable to provide to the National Repository the Annual Financial Information by the date required in subsection (a), the Issuer shall send a notice to the Municipal Securities Rulemaking Board, if any, in substantially the form attached as Exhibit A. c) The Dissemination Agent shall: i. each year file Annual Financial Information with the National Repository; and ii. (if the Dissemination Agent is other than the Issuer), file a report with the Issuer certifying that the Annual Financial Information has been filed pursuant to this Disclosure Certificate, stating the date it was filed. Section 4. Content of Annual Financial Information. The Iss'uer's Annual Financial Information filingshall contain or incorporate by rcicicncc the Following: a) The last available audited financial statements of the Issuer for the prior fiscal year, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under State law, as in effect from time to time, or, if and to the extent such Financial statements have not been prepared in accordance with generally accepted accounting principles, noting the discrepancies therefrom and the effect thereof. If the Issuer's audited financial statements for the preceding years are not available by the tune Annual Financial Information is required to be tiled pursuant to Section 3(a), the Annual Financial Information filing shall contain unaudited financial statements of the type included in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Financial Information when they become available. b) A table, schedule m other information prepared as of the end of the preceding fiscal year, of the type contained in the final Official Statement under the captions: • Debt Limit. • Direct Debt. • General Obligation Debt. • Statement of Bonded Indebtedness. • Other Obligations. D-2 CM a(lonn Cis. Johaww toeenm fora 5f 1,325,000' GenerzJ ODfigyuirw rtnnA+, Suri, 20'_1 • Percentages for Taxable Valuation After Rollbacks. • Building Permits. • Property Valuations and Trend of Valuations -Actual (1000/0) Valuations for the City. • Property Valuations and Trend of Valuations -Taxable ("Rollback") Valuations for the City. • Levies and Tax Collections. • Larger Taxpayer s'. • Tax Rates. • Statcmcnt of Nut Position-Govcrnmcntal Activities. • Statement of Activities-Governinemal Activities. • Balance Sheet -General Fund. • Statement of Revenues, Expenditures and Changes in Fund Balance -General Fund. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been filed with the National Repository. The Issuer shall clearly identify each such other document so included by reference. Section 5. Reportin¢ of Significant Events. a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds in a timely manner not later than 10 Business Days after the day of the occurrence of the event: i. Principal and interest payment delinquencies; ii. Non-payment related defaults, if material; iii. Unscheduled draws on debt service reserves reflecting financial difficulties; iv. Unscheduled draws on credit enhancements relating to the Bonds reflecting financial difficulties: v. Substitution of credit or liquidity providers, or their failure to perform; vi. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations oftaxability. Notices of Proposed Issue (IRS Form 5701-TEB) orother material notices or determinations with respect to the tax-exempt status ofthe Series Bonds, or material events affecting the tax-exempt status of the Bonds; vii. Modifications to rights of Holders of the Bonds, if material; viii. Bond calls (excluding sinking fund mandatory redemptions'), if material, and tender offers; is. Defeasances of the Bonds; x. Release, substitution, or sale of property securing repayment of the Bonds, if material; xi. Rating changes on the Bonds; xii. Bankruptcy, insolvency, receivership or similar event of the Issuer; D -i Cii1i 0 10nn Cit Johaww Coeenm lmrze SI 1,325,000' GenerzJ ODligyuiew rtnnis, Soo(, 20'_1 xiii. The consummation of a merger, consolidation, of acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course ofbusiness, 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; xiv. Appointment ofa successor of additional tmstcc or the change of name ofa trustee, it' material; xv. 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; and xvi. Default, event of acceleration. termination event. modification of terms or other similar events under the terms ofa Financial Obligation of the Issuer, any of which reflect financial difficulties. b) Whenever the Issuer obtains the knowledge of the Occurence ofa Listed Event, the Issuer shall determine if the occurrence is subject to notice only if material, and if so shall as soon as possible determine if such event would be material under applicable federal securities laws. c) If the Issuer determines that knowledge of the occurrence of a Listed Event is not subject to materiality, or determines such occurrence is subject to materiality and would be material under applicable federal securities Taws, the Issuer shall promptly, but not Tater than 10 Business Days after the occurrence of the event, file a notice ofsuch occurrence with the Municipal Securities Rulemaking Board through the filing with the National Repository. Section 6. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Certificate with respect to each Series of Bonds shall terminate upon the legal dcfcusaucc, prior redemption or payment in full of all of the Bonds of that Series or upon the Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of legislative action or final judicial action or administrative actions or proceedings, the failure of the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended. Section 7. Dissemination Agent. The Issuer may, room time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent. with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be the Is's'uer. Section 8. Amendment' Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status ofan obligated person with respect to the Bonds, or the type of business conducted; b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, atter taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and c) The amendment or waiver either it is approved by the Holders of the Bonds in the same manner as provided in the Resolution for amendments to the Resolution with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. D-4 Ci0a(ronn Cit Johaww Coemn, fora 511,325,000' Ganrmf OWgmlon rtome. Soo(, 20'_1 In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment in the next Annual Financial Information tiling, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, i f the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event undo- Section 5(c), and (it) the Annual Financial In f omtation filing for the year in which the change is made will present a comparison or other discussion in narrative form (and also, if feasible, in quantitative form) describing or illustrating the material differences between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Financial Information filing or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. Ifthe Issuer chooses to include any information in any Annual Financial Information filing or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Financial Information filing or notice of occurrence of a Listed Event, Section 10. Default. In the event of failure of the Issuer to comply with any provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Is's'uer to comply with its obligations under this Disclosure Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any person for any default hereunder and are hereby waived to the extent permitted by law. A default under this Disclosure Certificate shall not be deemed an event of default under the Resolution. and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the Is's'uer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the participating Underwriters and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Section 13. Rescission Riehts. The Issuer hereby reserves the right to rescind this Disclosure Certificate without the consent of the Holders in the event the Rule is repealed by the S.E.C. or is ruled invalid by a federal court and the time to appeal from such decision has expired. In the event of a partial repeal or invalidation of the Rule, the Issuer hereby reserves the right to rescind those provisions of this Disclosure Certificate that were required by those parts ofthe Rule that are so repealed or imalidated. D-5 CM a(lonn 0A Johaww Coeenn, /Hiro 5/ 1,325,000' GenerzJ ODligyuirw rtnnA+, v, i(, 20'_1 Date: day of , 2021. ATTEST: By: City Clerk CITY OF IOWA CITY, STATE OF IOWA WS EXHIBITA NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL INFORMATION Name of Issuer: City of Iowa City, Iowa Name of Bond Issue: S General Obligation Bonds. Series 202 Dated Date of Issue: .2021 NOTICE IS HEREBY GIVEN that the Issuer has not provided Annual Financial Information with respect to the above-named Bonds as required by Section 3 of the Continuing Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer anticipates that the Annual Financial Information will be filed by Dated: day of X20 CITY OF IOWA CITY, STATE OF IOWA By: Its: D-6 OFFICIAL BID FORM City of Iowa City May 4, 2021 410 OF Washington Street Speer II inti Ito Iowa City, IA 52240 Facsimile: (319) 291-8628 City Council Mcmbers: For the $11,325,000* Cement I Obligation Bonds, Series 2021 (the "Bonds'), of the City of Iowa City, Johnson County, Iowa (the "City"), as described in the annexed Official Terms of Offering, which is expressly made a part of this bid, we will pay you $ (no less than $11.234,400). The Bonds are to bear interest at the following respective rates (each a multiple of 1 8 or 1/100 of I %) for the Bonds of each designated maturity. AMOUNTS* .AND MATCRITIES—JUNE 1 $1,135,000.......2022 % $1,135,000.......2025 % $1,135.000._.....2029 IS 1,135,000.........2023 % 1,135,000 ..__.. 2026 % 1,135,000 -- .2030 No 1,135,000__..._2024 1,135,000...___202] 1,110,000._...._2031 1.135.00)..._.._2028 IS nnyusale, little „mmime. anahe asR.esoart blo let" he'd' as me „cru,, of the niertei If "he h,neOre munnmo 1 reaen,vnm: v.o it (Ill he n„ n:e.mue vueeeure o, nems Nmm'itin': Tolle falls fit :Nmmitie.s: Terni Naturip' Valla ill Tariff Allaw in Mannh(ex: Tenn blanerio *9nyer: fit TraIC1eai (uni' m io in lie rr..done e,an Inv oyaml Tom, ,/oO=nnnt In submitting this bid, we represent that (i) this bid constitutes a firm offer m purchase the Bonds, and (ii) we have on established industry reputation for underwriting new issuances of municipal bonds and notes. The Bonds arc to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Ahlers & Cooney, P.C., Des Moines, Iowa. The City will pay for the legal opinion. The Purchaser agrees to pay the fee charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on die Bonds. As evidence of our good faith, if we are the winning bidder, we will wire it the amount of PERCENT OF PAR (the "Deposit') WITHIN TWO HOURS after the bid opening time to the City's good Paith bank and under the tens provided in the Official Terms ol'Offering for the Bonds. Alternatively, we have wire transferred or enclosed herewith a check payable to the City in the amount of the Deposit under the tcrzns provided in the Official Terms of Offering for the Bonds. Attached herein is a list of members of our account on whose behalf this bid is made. Farm of Deposit (Crack One Account Manager lnliumation Bidders nation Inelasticn WIt I ¢purchased n Bill O Cetf ed( inner heck II Undlore, riles /flank insurance fvm Wfee I littlerII Adfifirc,li Name of Insurer IPl seldiin) W TWO 11 Anot BillOpelnW 4 red Hep N'irc TramRr r% SmICLIP IPremium: Aatoanl: S226,W Dilctt Pltanc if flamnun: (Checknanl FAX Number L —_— — — Vean 6MadMarro LI All The foregoing bid was accepted and the Bonds sold by resolution of the ('fly on May 4, 2021, and receipt is hereby acknowledged of the good faith Deposit which is being held in accordance with the terms of the annexal Official Terms of OfTering. ATTEST: CITY OF IOWA CITY JOHNSON COUNTY. IOWA CiI1i fit onn Cit Johnxme Ioeenn, Imrze SI 1,325,000' GenerzJ Ohli oaiew Rnnds, Soo(, 20'_1 OFFICIAL TERMS OF OFFERING $1113255000*" CITY OF IOWA CITY Johnson County, Iowa General Obligation Bonds, Series 2021 The City of Iowa City, Johnson County, Iowa, (the "City"), will receive electronic bids on the SpeerAuction ("SpccrAuction") website address "www.Spcci Auction.com" for its $11,325,000' General Obligation Bonds, Series 2021 (the'Bonds"), on an all or none basis between 10:30 A.M. and 11:00 A.M., C.D.T., Tuesday, May 4, 2021. To bid electronically, bidders must have: (1) completed the registration form on the SpeerAuction website, and (2) requested and received admission to the City's sale (as described below). The City will also receive sealed bids for the Bonds, on an all or none basis, at the office of the Finance Director, City Hall, 410 E. Washington, Iowa City, Iowa, before 11:00 A.M., C.D.T,Tuesday,May4,2021. The City will also receive facsimile bids at(319)291-8628 or(319)341-4008 for the Bonds, on anal] or none basis, before 11:00 A.M., C.D.T., Tuesday, May 4, 2021. Upon receipt, facsimile bids will be sealed and treated as sealed bids, and along with all other sealed bids will be publicly opened and, together with any electronic bids, read. Award will be made or all bids rejected at a meeting of the City on that date. The City reserves the right to reject all bids, to reject any bid proposal not conforming to this Official Terms of Offering, and to waive any irregularity or informality with respect to any bid. Additionally, the City reserves the right to modify or amend this Official Terms of Offering; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of bids on the Bonds and any such modification or amendment will be announced on the Amendments Page of tic SpccrAuction wcbpage and through Thomson Municipal New.v. Thu Ronds will constitute valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable property within the corporate limits of the City without limitation as to rate or amount, all except as limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws relating to the enforcement of creditors' rights generally and except that enforcement by equitable and similar remedies, such as mandamus, is subject to the exercise of judicial discretion -1DJi,fTNENTS TO PRMCIP I L A VOC \T. I FTER DETER VAITION OF REST RID. Tic afeargase I, nopaltimomaoitlmR d, audatch .robe/lid ununp chin..I( lj .d I .... ) hi IF, C .In.3n l.-t,d"I'---e f (h, nbnhl;RAAe TI,(teea Aoome. nnl nen - 00 I'll nISCI)A0hnih 1d oh d Imbeee.ICIL 600000. by a et% rfiedl, l 1Y' Icti'idr / ewe, oll It I( ndee J Iwedud/eimane Shalt he in Nc wh, hL,I, lion of el, On. Thedolla'o no/Nap I -1 poPmeAh vho fftnounithiddei itilets rhaehed ill-�h'cAma p'ierp/ m{rlu-B d 'aQ exlW Os (_"fAeAabmx. 9n,Moge a 1174/Yefed .Iofam aw (It, fl',f rhe Read, ,eiIt is node, bile wobamor, a, al.w1k a, illy. Ne n - e,Riddeo /n,ilin, ml�dnle eelex. 12ee Tl nld,tiles' TlelF osRidde e are.e- ml, fin adi•Ineel,lellhe oaalu...r. and 'hall fit hobbb" uP^n Ibe rYioeelnr, Rush, Establishment of Issue Price (10% Test May Apply if Competitive Sale Requirements are Not Satisfied) (a) The winning bidder shall as'sis't the City in establishing the issue price of the Bonds and shall execute and deliver to the City at closing an "issue price" or similar certificate setting forth the reasonably expected initial offering price to the Public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A to this Notice of Sale, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Ahlers & Cooney, P.C. ("Bond Counsel"). All actions to be taken by the City under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the City by the City's municipal advisor and any notice or report to be provided to the City may be provided to Speer Financial, Inc., Chicago, Illinois ("Speer"), Cii1i 0 k... a Cit Johaww Coemn, foirz, SI 1,325,000' UenerzJ OLlignrinn rtnnAs, v, i(, 20'_1 (b) The City intends that the provisions of Treasury Regulation Section 1.148-1(t)(3)(i) (defining "competitive sale" for purposes of establishing the issue price of tile Bonds) will apply to the initial sale of the Bonds (the "competilivc sale requirements") because: (i) the City shall disseminate this Notice of Sale to potential Underwriters in a manner that is reasonably designed to reach potential Underwriters; (ii) all bidders shall have an equal opportunity to bid; (iii) the City may receive bids from atleast three Underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (iv) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the lowest true interest cost, as set forth in this Notice of Sale. Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. (e) In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder. The City will not require bidders to comply with the "hold -the -offering -price rule" and therefore does not intend to use the initial offering price to the Public as of the Sale Date of any maturity of the Bonds as the issue price of that maturity, though the winning bidder may elect to apply the "hold the offering price rule" (as described below). Bids will not be subject to cancellation in the event that the competitive sale requirements are not satisfied. Unless a bidder intends to apply the "hold -the -offering -price rule" as described below, bidders should prepare their bids on the assumption that all of the maturities of the Bonds will be subject to the 10% test (as described below) in order to establish the issue price of the Bonds. If the competitive sale requirements are not satisfied, the 10% test shall apply to determine the issue price of each maturity of the Bonds unless the winning bidder shall request that the "hold -the -offering -price rule" (as described below) shall apply. The winning bidder must notify Speer of its intention to apply the "hold -the -offering -price rule" at or prior to the time the Bonds are awarded. (i) If the winning bidder does not request that tire "hold -the -offering -price rule" apply to determine the issue price of the Bonds, the following two paragraphs shall apply: The City shall neat the fust price at which 10% of a maturity of the Bonds (the "10% test") is sold to the Public as the issue price of that maturity, applied on a mamrity-by-maturity basis. The winning bidder shall advise the City if any motor ity of the Bonds satisfies the 10% test as ofthe date and time of the award of the Bonds. Until the 10% test has been satisfied in; to each maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold Bonds of that maturity have been sold to the Public. That reporting obligation shall continue, whether or not the closing date has Occurrd, until the 10%test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the Public. In addition, if the 10% test has not been satisfied with respect to any maturity of the Bonds prior to closing, then the purchaser shall provide the City with it representation as to the price of prices, as of the date of closing, at which the purchaser reasonably expects to sell the remaining Bonds of such maturity. (ii) If the winnine bidder does request that the "hold-theoffering-price rule" apply to determine the issue price of tile Bonds, the following three paragraphs shall apply: Cii1i 0 10nn Cia. Johaww Coeenm foil o SI 1,325,000' GenerzJ ODligyuiew rtnnAs, Suri, 20'_1 The City may determine to treat (i) pursuant to the 10% test, the fust price at which 10% of a maturity of the Bonds is sold to the Public as the issue price of that maturity and/or (ii) the initial ollering price to the Public as of the Sale Date of any maturity of the Bonds as the issue price of that maturity (the "hold -the -offering - price rule"). in each case applied on a maturity -by -maturity basis. The winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds. The City shall promptly advise the winning bidder, at or before the [line of award of the Bonds, which maturities of the Bonds shall be subject to the 10% test or shall be subject to the hold -the - Opel Ing -price rule of both. Bids will not be 'subject to cancellation in the event that the City determines to apply the hold -the -offering -price rule to any maturity of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the Underwriters havcoffered or will oftcr the Bonds to the Public on or before the date of award at the offering price or prices (the "initial ollering p ice'), and fit agree, on behalf of the Underwriters participating in the purchase of the Bonds, that the Underwriters will neither offer nor sell unsold Bonds of any maturity to which the hold -the -offering -price rule shall apply to any person at a price that is higher than the initial offering price to the Public coring the period starting on the Sale Date and ending on the earlier of the following: (1) the close of the fifth business day after the Sale Date; or (2) the date on which the Underwriters have sold at least 100/ of that maturity of the Bonds to the Public at a price that is no higher than the initial offering price to the Public. The City acknowledges that, in making the representation set forth above, the winning bidder will rely on (i) the agreement of each Underwriter to comply with the hold -the -offering -price rule, as set forth in an agreement among Underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the Public, the agncemcnt of each dealer who is a member of the selling group to comply with the hold -the -offering - price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an Underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the Bonds to the Public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold -the -offering -price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further acknowledges that each Underwriter shall be solely liable for its failure to comply with its agreement regarding the hold -the -offering -price rule and that no Underwriter shall be liable for the failuic of any other Underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail distribution agreement to comply with its corresponding agreement regarding the hold-Ihe- offering-price applicable to the Bonds. (e) By submitting a bid, each bidder confirms that (i) any agreement among Underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will contain language obligating each Underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable, to (a) report the prices at which it sells to the Public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the Public and (b) comply with the Cii1i a(lonn Cit Johaww Coeenm foirze 51 1,325,000' GenerzJ ODligyuiew rtnnAs, Soo(, 20'_1 hold -the -offering -price rule, if applicable, in each case if and for so long as directed by the winning bidder and asset forth in the related pricing wires which shall beat least until the 10% test has been satisfied as to the Bonds of that maturity or until the close of the fifth business day following the date of the award, and (ii) any agreement among Underwriters relating to the initial sale of the Bonds to the Public, together with the related pricing wires, contains or will contain language obligating each Underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Bonds to the Public to require each broker-dealer that is a party to such retail distribution agreement to (a) report the prices at which it sells to the Public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such Underwriter that either the 10% test has been satisfied as to the Bonds ofthat maturity oral] Bonds of that maturity hive been sold to the Public and (b) comply with the hold -the -offering -price rule, if applicable, in each case if and for so long as directed by the winning bidder or such Underwriter and as set forth in the related pricing wires, which shall be at least until the 10% test has been satisfied as to the Bonds of that maturity or until the close of the fifth business day following the date of the award. (e) Sales of any Bonds to any person that is a Related Party to an Underwriter shall not constitute sales to the Public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale: (i) "Public" means any person other than an Underwriter or a Related Party, (ii) "Underwriter" means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of The Bonds to the public including, specifically, the purchaser, and (b) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the Public (including a member ofa selling group or par y to a retail distribution agreement participating in the initial sale of the Bonds to the Public), (iii) a purchaser of any of the Bonds is a' -Related Party" to an Underwriter if the Underwriterand the purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), Cf more than 50% common ownership oftheir capital interests or profits interests, if both entities arc partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (iv) "Sale Date" means the date that the Bonds are awarded by the City to the winning bidder. Establishment of Issue Price (Hold -the -Offering Price Rule May Apply if Competitive Sale Requirements are Not Satisfied) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an "issue price" or similar certificate setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A to this Notice of Sale, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the City by the City's municipal advisor identified herein and any notice or report to be provided to the City may be provided to the City s municipal advisor. Ci0a(ronn Cit Johaww Coeenm lmrze 5i 1,325,000' Ganrmf Ohii aiiew m.mi,. v, o(, 20'_1 The City intends that the provisions of Treasury Regulation Section 1.148-I(t)(3)(i) (defining "competitive sale" for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the "competitive sale requirements") because: (1) the City shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4) the City anticipates awarding the sale of the Bonds it) the bidder who submits afirm offer to purchase the Bonds at the highest price (or lowest nue interest cost), as set forth in this Notice of Sale. Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder. The City may determine to treat (i) the first price at which 10% of a maturity ofthe Bonds (the "Wo test") is sold to the public as the issue price of that maturity and/or (it) the initial offering price to the public as of the sale date of any maturity of the Bonds as the issue price of that maturity (the "hold -the -offering -price rule"), in each case applied on a maturity -by - maturity basis (and i f a i llcrent interest rates apply within a maturity, m each separate CUSIP number within that maturity). The winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds. The C ftN shall promptly advise the winning bidder, at or before the time ofawai d of the Bonds, which maturities (and ifdifferent interest rates apply within a maturity which separate CUSIP numberwithin that maturity) of the Bonds shall be subject to the 10% test or shall be subject to the hold -the -offering -price rule. Bids will not be subject to cancellation in the event that the City determines to apply the hold -the -offering -price rule to any maturity of the Bonds. Bidders should prepare their bids on the assumption that some or all of the maturities of the Bonds will be subject to the hold -the -offering -price rule in order to establish the issue price of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the "initial offering price'), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (it) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the undcrwritci s will neither otter not sell unsold Bonds of any maturity to which the hold -the -offering -price rule shall apply to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following: (1) the close of the fifth (5a) business day after the sale date; or (2) the date on which the underwriters have sold at least 10% of that maturity (if the Bonds to the public at a price that is no higher than the initial offering price to the public. The winning bidder shall promptly advise the City when the underwrites have sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, ifthat occurs prior to the close of the fifth (5th) bus'ines's day after the sale date. If the competitive sale requirements are not satisfied, then until the 10% test has been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold Bonds ofthat maturity have been sold to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity of Limit all Bonds of that maturity have been sold. Citi a(ronn Cit Johaww Conn foil o 5/ 1,325,000' GenerzJ Ohh minn rtnnAs, Soo(, 20'_1 The City acknowledges that, in making the representation set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the hold -the -offering -price rule, as set forth in an agreement among underwriters and the related pricing wires, (it) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the hold - the -offering -price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold -the -offering - price rude, as set forth in the retail distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the hold -the -offering -price rule and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a menthol ora selling group, or of any broker-dealer that is a party to a retail distribution agreement to comply with its corresponding agreement regarding the hold -the -offering -price rule as applicable to the Bonds. By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the initial sale ofthe Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable, to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds ofthat maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold -the -offering -price rule, if applicablc, in each case if and for so long as directed by the winning bidder and as set forth in the related pricing wires, and (ii) any agreement among underwriters relating to the initial sale ofthe Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale ofthe Bonds to the public to require each broker-dealer that is a parry to such retail distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold-thooflcring-price i ulq if applicable, in each case if and for so long as directed by the winning bidder or such underwriter and as set forth in the related pricing wires. Sales of any Bonds to any person that is a related party m an underwriter shall not constitute sales m the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale: (1) "public' means any person other than an underwriter or a related party; (2) "underwriter" means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a per described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public); (3) a purchaser of any of the Bonds is a `related party" to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) at least 500N, common ownership ofthe voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests. if built entities are partnerships (including direct ownership by one partnership ofanother), or (iii) more than 50% common ownership ofthe value of the outstanding stock ofthe corporation or the capital interests or profit interests of the partnership- as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (4) "sale date" means the date that the Bonds are awarded by the City to the winning bidder. OO a(lonn Cia. Johaxna Com¢¢ loll a SI 1,325,000' GenerzJ 0hirsalna rtnnAs, Seder 20'_I Bond Details The Bonds will be in fully registered form in the denominations of $5.000 and integral multiples thereof in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, to which principal and interest payments on the Bonds will be paid. Individual purchases will be in book -entry form only. Interest on each Bond shall be paid by check or draft of the Bond Registrar to the person in whose name such Bond is registered at the close of business on the fifteenth day of the month next preceding an interest payment date on such bond. The principal of the Bonds shall be payable in lawful money of the United States of America at the principal office maintained for the purpose by the Bond Registrar in St. Paul, Minnesota. Semiannual interest is due June I and December I of each year, commencing December I, 2021 and is payable by U.S. Bank, N.A., St. Paul, Minnesota (the "Bond Registrar"). The Bonds are clued the date of delivery (expected to be on or about June I, 20211. AMOUNTS* AND MATURITIES—JUNE 1 $1,135.000--.... --.2022 $1,135000 -.....--...2025 $1,135.000 -.2029 1,135,000 ........ .........2023 1,135 000 ...............2026 1,135,000 ....__. 2030 1,135,000 ........ .........2024 1,135000 ...............2027 1,110,000 .........2031 1,135, 000 2028 An) consecufive maturities nmy be aggregated into term bonds at the option ofthe bidder, to Pouch case the mandatop redemption provisions shall be on the scone schedule us above. The Bonds due June I, 2022 - 2027, inclusive, are non -callable. The Bonds due June I, 202S - 203 1, inclusive, are callable in whole or in pail and on any date on or after June I, 2027, at a price ofpar and accrued interest. If less than all the Bonds are called, they shall be redeemed in any order of maturity as determined by the City and within any maturity by lot. Method of Bidding Electronically Notwithstanding the fact that the City permits receiving bids electronically using SpeerAuction, all bidders must have a signed, but uncompleted, Official Bid Form delivered to Spear Financial, Inc., Suite 608, 531 Commercial Street, Waterloo, Iowa, (3 19) 291-5628 facsimile, prior to the close of bidding to which a printout of the electronic bid will be attached and delivcrcd to the City. If bidding electronically -all -or -none bids must be submitted via the interact address www.SpeerAuction.com. The use of SpeerAuction shall be at the bidder's risk and expense and the City shall have no liability with respect thereto, including (without limitation) liability with respect to incomplete, late arriving and non-an'iving bids. To bid via the SpeerAuction webpage, bidders must first visit the SpeerAuction webpage where, if they have not previously registered with either SpeerAuction, Grant Street Group (the "Auction Administrator") or any other website administered by the Auction Administrator, they may register and then request admission to bid on the Bonds. Biddcis will be notified prior to the scheduled bidding time of their eligibility to bid. Only registered In and dealer banks with DTC clearing arrangements will be eligible to bid electronically. The `Rules" of the SpeerAuction bidding process may be viewed on the SpeerAuction webpage and are incorporated herein by reference. Bidders must comply with the Rules of SpeerAuction in addition to the requirements of the City's Official Terms of Offering. In the event the Rules of SpeerAuction and this Official Terms of Offering conflict, this Official Terms of Offering shall be controlling. All ciccuonic bids must be submitted on the SpeerAuction webpage. Electronic bidders may change and submit bids as many times as they choose during the sale period but may not delete a submitted bid. The last bid submitted by an electronic bidder before the deadline for receipt of bids will be compared to all other final bids to determine the winning bidder. During the bidding, no bidder will sec any other bidder's bid nor the status of their bid relative to other bids (e.g., whether their bid is a leading bid). The electronic bidder bears all risk of transmission failure. Any questions regarding bidding on the Speci Auction website should be directed to Grant Street Group at (412) 391-5555 x 370. Cii1i a(lonn Cit Johaww Coeenm foirze 5f 1,325,000' GenerzJ Ohii saiew rtnnAs, Su itt 20'_1 Each bidder shall be solely responsible for making necessary arrangements to access SpeerAuction for purposes of submitting its internet bid in a timely manner and in compliance with the requirements of the Terms of Offering. The City Is permitting bidders to use the services of the SpeerAuction solely as a communication mechanism to conduct the intern[ bidding and the SpeerAuction is not an agent of the City. Provisions of the Terns of Offering and Official Bid Form shall control in the event of conflict with information provided by the Internet Bid System. Electronic Facsimile Biddine: Bids may be submitted via facsimile at (319) 291.8628 or(319)341-4008. Electronic facsimile bids will be scaled and treated as scaled bids. Neither the City not its agents will assume liability for the inability of the bidder to teach the above named fax numbers prior to the time of sale specified above. Transmissions received atter the dead line will be rejected. Bid(lerselectingtosubmitbidsviafacsimiletransmissionbearfullandcompleteresponsibility for the transmission of such bid. Neither the City nor its agents will assume responsibility for the inability of the bidder to reach the above specified fax number to to the time of sale. Time of receipt shall be the time recorded by the person receiving the facsimile and shall be conclusive. Bidding Parameters and Award of the Bonds All interest rates must be in multiples of one-eighth or one one-hundredth of one percent (1/8 or I/ 100 of 1%), and not more than one rate for a single maturity shall be specified. The differential between the highest rate bid and the lowest rate bid shall not exceed three percent (3%). All bids must be for all of the Bonds and must be for not Iws than SI 1,234,400. Award of the Bonds; The Bonds will be awarded on the basis of true interest cost, determined in the following manner. True interestcost shall be computed by determining the annual interest ate (compounded semiannually) necessary to discount the debt service payments on the Bonds from the payment dates thereof to the dated date and to the bid price. For the purpose of calculating true interest cost, the Bonds shall be decmcd to become due in the principal amounts and at the times set forth in the table of maturities set forth above. In the event two or more qualifying bids produce the identical lowest true interest cost, the winning bid shall be the bid that was submitted first in time on the SpeerAuction webpage m if all Such bids are not submitted electronically, the winning bid shall be determined by lot. The Bonds will be awarded to the bidder complying with the terms of this Official Terms of Offering whose bid produces the lowest true interest cost rate to the City as determined by the City's Registered Municipal Advisor, which determination shall be conclusive and binding on all bidders; provided, that the City reserves the right to reject all bids or any non -conforming bid and reserves the right to waive any informality in any bid. Electronic bidders should verify the accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page immediately afro the bidding. The premium or discount, if any, is subject to pro rata adjustment if the maturity amounts of the Bonds are changed, maintaining, as close as possible, the same dollar amount of profit per $1,000 bond as bid. The true interest cost of each electronic bid will be computed by SpeerAuction and reported on the ObscrvanOil Page of the SpeerAuction webpage immediately following the date and time for receipt of bids. These true interest costs arc subject to verification by the City's Municipal Advisor, will be posted for information purposes only and will not signify an actual awaid of any bid or an official declaration of the winning bid. The City or its Municipal Advisor will notify 0re bidder to whom the Bonds will be awarded, if and when such award is made. The winning bidder will be required to make the standard filings and maintain the appropriate records routinely required pursuant to MSRB Rules G-8, G-1 I and G-36. The winning bidder will be required to pay the standard MSRB charge for Bonds purchased. In addition, the winning bidder who is a member of the Securities Industry and Financial Markets Association ("SIFMA") will be required to pay SIFMA's standard charge per Bond. Cii1i a(lonn Cit Johaww Coeenn, fora 5f 1,325,000' GenerzJ 0hfi sairw rtanAx. Soo(, 20'_1 Good Faith Deposit and Other Matters The winning bidder is required to a wire transfer from a solvent bank or trust company to the City's good faith bank the amount of TWO PERCENT OF PAR (the "Deposit') W ITHIN TWO HOURS after the bid opening tune as evidence of the good faith of the bidder. Alternatively, a bidder may submit its Deposit upon or prior to the s'ubmis'sion of its bid in the form ofa certified or cashier's check on, or a wire transfer from, a solvent bank or nest company for TWO PERCENT OF PAR payable to the Treasurer of the City. The City reserves the right to award the Bonds to a winning bidder whose wire transfer is initiated but not received within such two hour time period provided that such winning bidder's federal wire reference number has been received. In the event the Deposit is not received as provided above, the City may award the Bonds to the bidder submitting the next beat bid provided such bidder agnecs to such award. If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions: Amalgamated Bank of Chicago Corporate Trust 30 North LaSalle Street 38'" Floor Chicago, IF 60602 ABA # 071003405 Credit To: 3281 Speer Bidding Escrow RE: City of Iowa City, .lohnson County, Iowa bid for $11,325,000' General Obligation Bonds, Series 2021 If the wire shall arrive in such account prior to the dale and time of the sale of the Bonds. Contemporaneously with such wire transfer, the prospective purchaser shall send an email to blddingesciowLaboiixom with the following information: (1) indication that a wire transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it applies, and (4) the return wire instructions if such prospective purchaser is not awarded the Bonds. The City and any prospective purchaser who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc. ("Speer') shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not accepted. Speer shall, at its expense, promptly return the Deposit amount to the unsuccessful prospective purchaser; (it) if lire bid is accepted, the Deposit shall be forwarded to the City, (iii) Speer shall bear all costs of maintaining the escrow account and returning the funds to the prospective purchaser; (iv) Speer shall not be an insurer of the Deposit amount and shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v) income earned on the Deposit, if any, shall be retained by Speer. The City covenants and agrees to enter into a written agreement, certificate or contract, constituting an undertaking (the "Undertaking") to provide ongoing disclosure about the City for the benefit of the benclicial owners of the Bonds on or before the date of delivery of the Bonds as required under Section (b)(5) of Rule 15c2-12 (the "Rule") adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking shall be as described in the Official Statement, with such changes as may be agreed in writing by the Underwriter. The Underwriter's obligation to purchase the Bonds shall be conditioned upon the City delivering the Undertaking on or before the date of delivery of the Bonds. The Bonds will be delivered to lire successful purchaser against full payment in immediately available funds as soon as they can be prepared and executed, which is expected to be on or about June I, 2021. Should delivery be delayed beyond sixty (60) days from the date of sale lot any reason beyond the control of the City except failure of pcifmmance by the purchaser, the City may cancel the award or the purchaser may withdraw the good faith deposit and thereafter the purchaser's interest in and liability for the Bonds will cease. Cii1i a(lonn Cit Johaww Coeenm foil o SI 1,325,000' GenerzJ ODligyuiew rtnnAs, Soo(, 20'_1 The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts, and interest rates of the Bonds, and any other information required by law of deemed appropriate by the City, shall constitute a "Final Official Statement' of the City with respect to the Bonds, as that term is defined in the Rule. By awarding the Bonds to any underwriter or underwriting syndicate, the City agrees that, no more than seven (7) business days after the dale of such award, it shall provide, without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded, up to 50 copies of the Final Official Statement to permit each "Participating Underwriter" (as that term is defined in the Rule) to comply with the provisions ofsuch Rule. The City shall treat the senior managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing topics of the Final Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the City it shall enter into a contractual relationship with al l Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. By submission of its bid, the senior managing underwriter of the successful purchaser agrees to supply all necessary pricing information and any Participating Underwriter identification necessary to complete the Official Statement within 24 hours after award of the Bonds. Additional copies of the Final Official Statement may be obtained by Participating Uri itei s from the printer at cost. The City will, at its expense, deliver the Bonds to the purchaser in New York, New York (or arrange for "FAST' delivery) through the facilities of DTC and will pay for the bond attorney's opinion. At the thine ofelosing, the City will also furnish to the purchaser the following documents, each dated as of the date of delivery of the Bonds: (1) the legal opinion of Alders & Cooney, P.C., Des Moines, Iowa, that the Bonds are lawful and enforceable obligations of the City in accordance with their terms; (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income taxes as and to the extent set forth in the Official Statement far the Bonds; and (3) a no litigation certificate by the City. Purchaser consents to the receipt of electronic transcripts and acknowledges the City's intended use of electronically executed dOQ TTIUMS. Iowa Code chapter 554D establishes electronic signatures have the full weight and legal authority as manual signatures. The City has authorized the printing and distribution of an Official Statement containing pertinent information relative to the City and the Bonds. Copies of such Official Statement or additional information may be obtained from Dennis Bockcnstedt, Finance Director, City of Iowa City, 410 E, Washington Street, Iowa City, Iowa 52240 or an electronic copy of this Official Statement is available from the www.speerfinancial.com website under "Official Statement Sales/Competitive Calendar" or from the Registered Municipal Advisor to the City, Speer Financial, Inc., 531 Commercial Street, Suite 608, Waterloo, Iowa 50701 (telephone (3 19) 291-2077), and 230 West Monroe Street, Suite 2630, Chicago, Illinois 60606 (telephone (312) 346-3700). /s/ DENNIS BOCKENSTEDT Finance Director' CITY OF IOWA CITY Johnson County, Iowa CM 0 k... a 0AJohnxw Coiinv, loirzi SI 1,325,000' GenerzJ OLlignilnn rtnnAs, Soo(, 20'_1 EXHIBIT A EXAMPLE ISSUE PRICE CERTIFICATE from bond counsel USE FOR COMPETITIVE SALES -3 BIDS RECEIVED EXHIBIT A $ General Obligation Bonds, Series 2021 of Iowa City, Iowa ISSUE PRICE CERTIFICATE The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser'), hereby certifies as set forth below with respect to the sale of the above -captioned obligations (the "Bonds"). Reasonahly Expected ht(dal Ojjiorhtg Price. (a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by Purchaser are the prices listed in Schedule A (the "Expected Offering Prices"). The Expected Offering Prices are the prices for the Maturities of the Bonds used by Purchaser in formulating its bid to purchase the Bonds. Attached as Schedule B is a rive and correct copy of the bid provided by Purchaser to purchase the Bonds. (b) Purchaser was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by Purchaser constituted a firm offer to purchase the Bonds. ? Defined Terms. (a) Vaturitf means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (b) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term `related party" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (c) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is May 4, 2021. (d) Ondern•rber means (i) the Purchaser or any person that agnces pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group ora party to a retail distribution agreement participating in the initial sale of the Bonds m the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer and its agents with respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C. in connection with rendering its opinion that the interest on the Bonds is excluded Brom gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer train time to time relating to the Bond's. [UNDERWRITER] Dated: [ISSUE DATE] SCHEDULEA EXPECTED OFFERING PRICES (Attched) SCHEDULEB COPY OF UNDERWRITER'S BID (Atta(hed) USE FOR GENERAL RULE I U%- PUBLIC SALE EXHIBIT A $ General Obligation Bonds, Series 2021 of Iowa City, Iowa ISSUE PRICE CERTIFICATE The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser"), on behalf of itself, hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations (the "Bonds"). L Sale of floe Bonds. As of the date of this certificate, for each Maturity of the Bonds, the fust price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A. 2. Derned Terms. (a) /suer means the Iowa City, Iowa, a municipal corporation in the State of Iowa (b) Mnnrri!o, means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) Public means any person (including an individual, trust. estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter The term `related party" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (d) Undcimber- means (i) the Purchaser or any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the Imcgoing information will be relied upon by the Issuer and its agents with respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C., as Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the internal Revenue Scrvice Form 8038-0, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [Signature Page Follows] [UNDERWRITER] Dated: [ISSUE DATE] SCHEDULEA SALE PRICES (Attched) [USE IF SOME MATURITIES SUBJECT TO HOLD THE PRICE, OTHERS 10% RULE] EXHIBIT A $ General Obligation Bonds, Series 2021 of Iowa City, Iowa ISSUE PRICE CERTIFICATE The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser"), on behalf of itself, hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations (the "Bonds"). L Sale of General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective in listed in Schedule A. 2. Initial Offering Price o,(Nte Hold -(he -Offering -Price Maturities. (a) Purchaser offered the Hold -the -Offering -Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. (b) As set forth in the Notice of Sale and bid award, Purchaser has agreed in writing that, (i) for each Maturity of the Hold -the -Offering -Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "hold -the -offering -price rule"), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker clealer who is a party to the retail distribution agreement, to comply with the hold -the -offering -price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-tht: Offering -Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 3. Defined Terms. (a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "General Rule Maturities." (b) Hold -the -Offering -Price Maunities means those Maturities ofthe Bonds listed in Schedule A hereto as the "Hold -the -Offering -Price Maturities:' (c) Holding Pennd means, with respect to a Hold -the -Offering -Price Maturity, the period starting on the Sale Date and ending on the tadrer of (i) the close of the fifth business day after the Sale Date ([DATE]), or (it) the date on which Purchaser has sold at least 10% of such Hold -the -Offering -Price Maturity, to the Public at prices that are no higher than the Initial Offering Price for such Hold -the -Offering - Price Maturity. (d) Issuer means the Iowa City, Iowa, a municipal corporation in the State of Iowa. (c) Maturitp means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. (f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" tot purposes of this certificate genaally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Dale means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Dam of the Bonds is May 4, 2021. (h) Undcrariter means (i) the Purchaser m any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (it) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including it member of it selling group or it party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited m factual matters only. Nothing in this certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer and its agents with respect to certain of the representations set froth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Alders & Cooney, P.C., Bond Counsel- in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [UNDERWRITER] Dated: [ISSUE DATE] SCHEDULEA SALE PRICES OF THE GENERAL RULE MATURITIES AND INITIAL OFFERING PRICES OF THE HOLD -THE -OFFERING -PRICE MATURITIES (Anndiea) SCHEDULEB PRICING WIRE OR EQUIVALENT COMMUNICATION 018e0'n-1 10n4138 ITEMS TO INCLUDE ON AGENDA FOR APRIL 20, 2021 CITY OF IOWA CITY, IOWA $11,325,000* (Subject to Adjustment per Terms of Offering) General Obligation Bonds, Series 2021 Resolution directing the advertisement for sale and approving electronic bidding procedures and Distribution of Preliminary Official Statement. NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. April 20, 2021 The City Council of the City of Iowa City, State of Iowa, met in regular session, via electronic means pursuant to Iowa Code section 21.8, as a meeting in person is impossible or impractical due to concerns for the health and safety of council members, staff, and the public presented by COVID-19, at 6:00 P.M., on the above date. There were present Mayor Teague, in the chair, and the following named Council Members: Bergus, Mims, Salih, Taylor, Teague, Thomas, Weiner Absent: None Vacant: None 2 Council Member Mims introduced the following Resolution entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $11,325,000* (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION BONDS, SERIES 2021, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENT" and moved its adoption. Council Member Salih seconded the Resolution to adopt. The roll was called and the vote was, AYES: Bergus, Mims, Salih, Taylor, Teague, Thomas, Weiner NAYS:None Whereupon, the Mayor declared the resolution duly adopted as follows: Resolution 21-107 RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $11,325,000* (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION BONDS, SERIES 2021, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENT WHEREAS, the Issuer is in need of funds to pay costs of the opening, widening, extending, grading and drainage of the right-of-way of streets, highways, avenues, alleys, and public grounds; the construction, reconstruction, and repairing of any street and streetscape improvements, with related utility work, traffic control devices, lighting, sidewalks, and the acquisition of real estate for such purposes; the construction, reconstruction, enlargement, improvement, and repair of bridges; the rehabilitation and improvement of parks already owned, including facilities, equipment and improvements commonly found in city parks; equipping the fire department; and the acquisition, construction, reconstruction, extension, improvement, and equipping of works and facilities useful for the collection and disposal of solid waste, essential corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $10,200,000 be authorized for said purpose(s); and WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of Iowa, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the Bonds, and the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and WHEREAS, the City is in need of funds to pay costs of improvements to and equipping of the Senior Center facility, general corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $700,000 be authorized for said purpose(s); and WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000, and the Bonds for these purposes do not exceed $700,000; and WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above set forth, and, no petition for referendum having been received, the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and WHEREAS, the City is in need of funds to pay costs of the acquisition, construction and reconstruction of facilities for the public works department, including sand and salt storage bunkers; and the construction, reconstruction, enlargement, improvement, and repair of trails and recreational areas, general corporate purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $700,000 be authorized for said purpose(s); and WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000, and the Bonds for these purposes do not exceed $700,000; and WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above set forth, and, no petition for referendum having been received, the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose(s); and WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is hereby found and determined that the various general obligation bonds authorized as hereinabove described shall be combined for the purpose of issuance in a single issue of $11,325,000* (Dollar Amount Subject to Change) General Obligation Bonds as hereinafter set forth; and WHEREAS, in conjunction with its Municipal Advisor, Speer Financial, and Disclosure Counsel, the City has caused a Preliminary Official Statement to be prepared outlining the details of the proposed sale of the Bonds; and WHEREAS, the Council has received information from its Municipal Advisor evaluating and recommending the procedure hereinafter described for electronic, facsimile and internet bidding to maintain the integrity and security of the competitive bidding process and to facilitate the delivery of bids by interested parties; and WHEREAS, the Council deems it in the best interests of the City and the residents thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet communication. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, STATE OF IOWA: 11 Section 1. That the receipt of electronic bids by facsimile machine and through the SpeerAuction Competitive Bidding System described in the Notice of Sale and Official Statement are hereby found and determined to provide reasonable security and to maintain the integrity of the competitive bidding process, and to facilitate the delivery of bids by interested parties in connection with the offering at public sale. Section 2. That General Obligation Bonds, Series 2021, of City of Iowa City, State of Iowa, in the amount of $11,325,000* (Dollar Amount Subject to Change), to be issued as referred to in the preamble of this Resolution, to be dated June 1, 2021, be offered for sale pursuant to the published advertisement. Section 3. That the preliminary Official Statement in the form presented to this meeting be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of the Securities and Exchange Commission, subject to such revisions, corrections or modifications as the Mayor and City Clerk, upon the advice of bond counsel, disclosure counsel, and the City's Municipal Advisor, shall determine to be appropriate, and is authorized to be distributed in connection with the offering of the Bonds for sale. Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least once, the last one of which shall be not less than four clear days nor more than twenty days before the date of the sale. Publication shall be made in the Iowa City Press -Citizen, a legal newspaper, printed wholly in the English language, published within the county in which the Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the 4a' day of May, 2021, at 7:00 P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were previously received and opened by City Officials at 11:00 A.M. on said date. The notice shall be in substantially the following form: 5 (To be published April 23, 2021) Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Iowa City, State of Iowa, hereafter described, must be received at the office of the Finance Director, City Hall, 410 E. Washington, Iowa City, Iowa 52440 (the "Issuer") before 11:00 A.M., on the 4a` day of May, 2021. The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with the Terms of Offering. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2021, in the amount of $11,325,000*, to be dated June 1, 2021 (the 'Bonds"). Bids to be received before 11:00 A.M. C.D.T. *Subject to principal adjustment pursuant to official Terms of Offering. Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440, Electronic Internet Bidding: Electronic Internet bids will be received at the office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440. The bids must be submitted through the SPEERAUCTION competitive bidding system. Electronic Facsimile Bidding: Electronic facsimile bids will be received by the City's Municipal Advisor, Speer Financial, Waterloo, Iowa (facsimile number: (319) 291-8628 or (319) 341-4008). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Sale and Award: The sale and award of the Bonds will be held at the Ernma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa at a meeting of the City Council on the above date at 7:00 P.M. The City may hold an electronic meeting. For information on how to participate see the meeting agenda. Official Statement: The Issuer has issued an Official Statement of information pertaining to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid Form, which is incorporated by reference as a part of this notice. The Official Statement may be Ii obtained by request addressed to the City Clerk, City Hall, 410 E. Washington, Iowa City, Iowa 52440 or the Issuer's Municipal Advisor, Speer Financial, 531 Commercial Street, Waterloo, Iowa, 50703, Telephone: 319-291-2077. Terms of Offering: All bids shall be in conformity with and the sale shall be in accordance with the Terms of Offering as set forth in the Official Statement. Legal Opinion: The Bonds will be sold subject to the opinion ofAhlers & Cooney, P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the Bonds. Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the City Council of the City of Iowa City, State of Iowa. City Clerk, City of Iowa City, State of Iowa (End of Notice) PASSED AND APPROVED this 2011 day of April, 2021. Mayor ATTEST: 1 � Lp ) l , City Clerk CERTIFICATE STATE OF IOWA )SS COUNTY OF JOHNSON 1, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the Council hereto affixed this 20th day ofF_ A pril, 2021. City Clerk, City Of 104 City, State of 17a (SEAL) CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF JOHNSON ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Iowa City, in the County of Johnson, State of Iowa, and that as such Clerk and by full authority from the Council of the City, I have caused a NOTICE OF BOND SALE (511,325,000* (Dollar Amount Subject to Change) General Obligation Bonds, Series 2021) of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures a correct and complete copy, to be published as required by law in the Iowa City Press -Citizen, a legal newspaper published at least once weekly, printed wholly in the English language, published regularly and mailed through the post office of current entry for more than two years and which has had for more than two years a bona fide paid circulation recognized by the postal laws of the United States, and has a general circulation in the City, and that the Notice was published in all of the issues thereof published and circulated on the following date: April 24, 2021. WITNESS my official signature this 24th day of April, 2021. City Clerk, City of I a City, State of to (SEAL) 01860110-1110714-138 e t e O� t;?)Onc�s CITY CLERK CITY OF IOWA CITY ICPD 410 E WASHINGTON ST IOWA CITY IA 522401825 State of Wisconsin County of Brown, ss.: PRESS -CITIZEN MEDIA PART OF THE USA TODAY NETWORK This is not an invoice # of Affidavits: 1 The undersigned, being first duly sworn on oath, states that the Iowa City Press Citizen, a corporation duly organized and existing under the laws of the State of Iowa, with its principal place of business in Iowa City, Iowa, the publisher of Iowa City Press Citizen newspaper of general circulation printed and published in the City of Iowa City, Johnson County, Iowa, and that an advertisement, a printed copy of which is attached as Exhibit "A" and made part of this affidavit, was printed and published in Iowa City Press Citizen on the following dates: Ad No. Start Date: I 0004700884 4/24/21 04/2412021 $80.00 I Copy of Advertisement Exhibit "A" Subscribed and shorn to before me by said aRant this 28th day of Aori1, 2021 Notary Public Commission expir S VICKY FELTY Notary Public E ate Of Wisconsin NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale at Bonds of the City of Iowa City, State of low., hereafter described, must be received at the office of the Finonc, Director, City Hall, 410 E. Washington, town City, Iowa 52440 (the "Issuer") before 11:00 A.M., on the 4th tlaY of MaY, 2021. The bids will then be publicly opened and referred for .,fire to the meeting of the City Council in coMnnnitY with the Terms or Offering. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES Owlthe unf t 1L325,OODi fo Ibe dated lune 1, 021 (the Bondy). Bids to be l-dearend before 11:00 A.M. C.D.T. *Subject to andainol rahu' nsat pursuant to official Terms of Offering. Manner of Bidding. Open bids will not bere £ivel. Bids will be received in any of the following methods: -Sealed Bidding: Sealed bids may be submitted artd .111 Be received at the office of the Finance Director at City Hall, 410 E. Washington, Iowa City, Iowa 52440. Electronic Internet Bidding: Electronic Internet bids will be received at the office of the Finance Director at City Hall, 410 E. Washington, low. City, Iowa 52440. The bitls must be submitted through the SPEERAUCTION compel111Ye bidding system. - Electronic Facsimile Bidding; Electronic facsimile bids will be received by the City's Municipal Advisor, Speer Financial, Wateioo. Iowa (facsimile number: (319) 291-8628 or (319) 3414005. Electronic facsile bids all be mi be treated as sealed bids. Consideration of Bids: Atter the time forceipt of bids has passed, the close of se.I,d bids will be announced. Sealed bids will then be pubiidv opened and announced. Finally, electronic Internet bids will be recessed and .go .unred- Sale and Award: The sale and award of the Bonds will be held of the Emma J. Harvot Hall, City Holl, 410 E. Washington, Iowa City, Iowa at o meeting of the CityY Council on the above date at 6:00 P.M. The City may hold an electronic meeting. For information on how to Participate see the meeting agenda. Terms of Offering: All bids shall be in conformity with and the sale shelf be in...dance with the Terms of Offering as set forth in the Offici.f Statement. Right, Reserved: The right Is reserved to refect any or all bids, and taw £g any irrula,iffes a deemed to be in the best interests m ofthepublic. City of of Iowa C", Stateorder of the City Cauncil of low. the KELLIE FRUEHUNG, CITY CLERK CITY OF IOWA CITY, STATE OF IOWA