HomeMy WebLinkAboutFY2021 Annual Financial Report
Annual Comprehensive
Financial Report
City of Iowa City, Iowa
For the fiscal year ended June 30, 2021
Prepared by:
Finance Department
City of Iowa City, Iowa
Introductory
Section
Tab
City of Iowa City, Iowa
Table of Contents
June 30, 2021
Page
Introductory Section
Table of contents ................................................................................................................................ 1
Letter of transmittal ............................................................................................................................ 3
Certificate of Achievement for Excellence in Financial Reporting ................................................... 12
City organizational chart .................................................................................................................... 13
City officials....................................................................................................................................... 14
Financial Section
Independent Auditor’s Report ............................................................................................................ 15
Management’s Discussion and Analysis ............................................................................................ 19
Basic Financial Statements
Government-wide financial statements
Statement of net position ............................................................................................................. 30
Statement of activities .................................................................................................................. 33
Fund financial statements
Balance sheet – governmental funds ............................................................................................ 34
Reconciliation of the balance sheet of the governmental funds to the statement of net position 35
Statement of revenues, expenditures, and changes in fund balances – governmental funds ....... 36
Reconciliation of the statement of revenues, expenditures, and changes in fund balances of
governmental funds to the statement of activities ..................................................................... 37
Statement of net position – proprietary funds .............................................................................. 38
Statement of revenues, expenses, and changes in fund net position – proprietary funds ............ 39
Statement of cash flows – proprietary funds ................................................................................ 40
Statement of fiduciary net position – custodial fund ................................................................... 41
Statement of changes in fiduciary net position – custodial fund ................................................. 42
Notes to financial statements .......................................................................................................... 43
Required Supplementary Information
Budgetary comparison schedule – budget and actual – all governmental funds and enterprise
funds – budgetary basis………………………………………………………………………… 78
Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 80
Note to required supplementary information – budgetary reporting…………………………….. 81
Schedule of the City’s proportionate share of MFPRSI net pension liability…………………… 83
Schedule of City’s MFPRSI contributions………………………………………………………. 84
Notes to required supplementary information – MFPRSI pension liability……………………... 86
Schedule of the City’s proportionate share of IPERS net pension liability…………………… .. 87
Schedule of City’s IPERS contributions……………………………………………………….... 88
Notes to required supplementary information – IPERS pension liability……………………….. 90
Required supplementary information – schedule of changes in the City’s total OPEB liability,
related ratios and notes…………………….……………………………………..…….……… 91
Combining Fund Statements
Combining balance sheet – nonmajor governmental funds ............................................................ 94
Combining statement of revenues, expenditures, and changes in fund balances – nonmajor
governmental funds ...................................................................................................................... 95
Combining statement of net position – nonmajor enterprise funds ................................................ 98
Combining statement of revenues, expenses, and changes in fund net position – nonmajor
enterprise funds ............................................................................................................................ 99
Combining statement of cash flows – nonmajor enterprise funds .................................................. 100
Combining statement of net position – internal service funds ........................................................ 102
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City of Iowa City, Iowa
Table of Contents
June 30, 2021
Page
Combining Fund Statements (continued)
Combining statement of revenues, expenses, and changes in fund net position – internal
service fund ............................................................................................................................ 103
Combining statement of cash flows – internal service funds .................................................... 104
Statistical Section (Unaudited)
Net position by component ........................................................................................................... 107
Changes in net position ................................................................................................................ 108
Fund balances – governmental funds ........................................................................................... 110
Changes in fund balances – governmental funds ......................................................................... 111
General government tax revenues by source ................................................................................ 112
Assessed and taxable value of property ........................................................................................ 113
Property tax rates – direct and overlapping governments ............................................................ 114
Levies and collections .................................................................................................................. 115
Principal taxpayers ....................................................................................................................... 116
Larger water system customers .................................................................................................... 118
Sales history and water system charges ........................................................................................ 119
Larger sewer system customers .................................................................................................... 120
Sales history and sewer system charges ....................................................................................... 121
Ratios of outstanding debt by type ............................................................................................... 122
Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ....... 123
Computation of direct and overlapping debt ................................................................................ 124
Legal debt margin information ..................................................................................................... 125
Schedule of revenue bond coverage ............................................................................................. 126
Schedule of TIF revenue bond coverage ...................................................................................... 127
Demographic and economic statistics .......................................................................................... 128
Principal employers ...................................................................................................................... 129
Full-time equivalent city government employees by function ..................................................... 130
Operating indicators by function .................................................................................................. 131
Capital assets by function ............................................................................................................. 132
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 Standards ....................................................................................................................... 133
Independent auditor’s report on compliance for each major federal program and report on internal
control over compliance required by the Uniform Guidance ....................................................... 135
Schedule of expenditures of federal awards ................................................................................. 137
Notes to the schedule of expenditures of federal awards ............................................................. 140
Schedule of findings and questioned costs ................................................................................... 141
Corrective action plan .................................................................................................................. 144
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December 3, 2021
To the Citizens, Honorable Mayor, Members
of the City Council and City Manager
City of Iowa City, Iowa
The Annual Comprehensive Financial Report (Annual Report) of the City of Iowa City, Iowa (the
City) for the fiscal year ended June 30, 2021 is submitted herewith in accordance with the
provisions of Chapter 11 of the Code of Iowa. The City’s Finance Department prepared this report.
Responsibility for both the accuracy of the data presented and the completeness and fairness of the
presentation, including all disclosures, rest with the City. I believe the information, as presented,
is accurate in all material respects and presented in a manner designed to fairly present the financial
position and results of operations of the City. All disclosures necessary to enable the reader to gain
an understanding of the City's financial affairs have been included.
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 provide reasonable, rather than absolute, assurance that the
financial statements will be free of any material misstatement.
Bohnsack & Frommelt, LLP, a firm of independent public accountants has issued an unmodified
(“clean”) opinion on the City’s financial statements for the year ended June 30, 2021. 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 Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for 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 Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found immediately following the report of the
independent auditors.
Profile of the Government
The City of Iowa City was incorporated April 6, 1853. The City is governed by a seven member
Council; each member serves a four-year term. Elections are held every two years allowing for
continuation in office of at least three members at each biennial election. The Council members are
elected at large, 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.
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The City Council is the legislative body and makes all policy determinations for the City through the
enactment of ordinances and resolutions. It also adopts a budget to determine how the City will obtain
and spend its funds. The Council appoints members of boards, commissions and committees.
The City Manager is the chief administrative officer for the City and is appointed by the City Council.
The City Manager implements policy decisions of the City Council and enforces City ordinances. In
addition, the City Manager appoints and directly supervises the directors of the City’s operating
departments and supervises the administration of the City’s personnel system. The City Manager
supervises 498 full-time and 43 part-time permanent municipal employees and 276 temporary
employees, including a police force of 74 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 1
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 Attorney's 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-street 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 three-year plan permits a more comprehensive review of the City’s financial condition, allowing
analysis of the current and future needs and requirements. During preparation of the plan, careful
review is made of property tax levy rates, utility and user fee requirements, ending cash balances by
fund, debt service obligations, bond financing needs, capital outlay for equipment purchases and
major capital improvement projects. The state requires at least a one-year operating budget. While
legal spending control is exercised at a state mandated function level, management control is set at
the Department Manager level. Encumbrance accounting is utilized in all funds for budgetary control.
Appropriations that are not spent lapse at the end of the year.
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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 2021 of 31,206 students, which is a decrease of 524 students from 31,730 students in the fall
of 2020. The academic and research missions of the 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 Pearson, 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 Coralville 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 of businesses.
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 have a favorable impact upon the City's economy and growth.
According to the 2020 census, the population of Iowa City is 74,828. This is an increase of 6,966
or 10.3% as compared to the 2010 census of 67,862.
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-term impact on the City’s economy. On March 13, 2020, the
President of the United 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 6.9% for June 2020. This still compared favorably against the State
of Iowa at 7.1% 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%. Iowa
City’s economy has continued to improve and as of June 2021, Iowa City’s unemployment rate had
fallen to 4.4% while the State of Iowa was at 4.0%, and the National rate was 5.9%.
The rate of new housing construction also decreased substantially due to the COVID-19 pandemic
in comparison to the prior year based on the number of building permits issued. New housing
building permits consisted of 101 new single-family houses and duplexes in 2020 as compared to
84 in 2019; multi-family dwelling units added during fiscal year 2020 was 49, compared to 417 in
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84 in 2019; multi-family dwelling units added during fiscal year 2020 was 49, compared to 417 in
2019; and mixed commercial/residential developments added 0 dwelling units in 2020 versus 59
residential units in 2019. Altogether new housing additions totaled 150 units valued at $42,363,387
in 2020 versus a total of 560 units valued at $124,362,697 in 2019.
Also reflecting the impact of the COVID-19 pandemic, the City had a decrease in commercial
construction permits between 2019 and 2020. The value of permits for commercial and utility
construction decreased from $9,755,586 in 2019 to $8,841,863 in 2020; also, the value of
remodeling permits for residential and commercial properties decreased from $96,159,999 in 2019
to $34,150,596 in 2020. Total permits issued in 2020 for all purposes was 550 permits for
$87,302,173 which was less than the 2019 total permit issuance of 606 permits for $231,521,881.
The COVID-19 pandemic has had a significant short-term economic 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 back up. The stability of the University of Iowa 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 COVID-
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:
1. Promote a Strong and Resilient Local Economy
• Through collaboration with local partners, increase opportunities for marginalized
and low-income populations to obtain access to skills training, good jobs and
affordable childcare
• Encourage healthy, diverse, and sustainable economic activity throughout Iowa City,
including taking steps to invigorate neighborhood commercial districts and create
new small neighborhood commercial nodes
• Effectively support growth and promotion of small locally-owned businesses, women
and minority-owned businesses, and the local foods economy
2. Enhance Community Mobility for All Residents
• Continue implementation of the City’s Bicycle Master Plan and pursue Gold Bicycle
Friendly Community status from the League of American Bicyclists
• Complete the Iowa City Area Transit Study, pursue recommended changes, and
evaluate implementation outcomes, to ensure community needs are met by system
changes
• Ensure ease and safety of travel for residents and visitors through expansion of
accessibility measures, improved connectivity, and use of adopted complete streets
design standards
3. Foster Healthy Neighborhoods throughout the City
• Identify new efforts to expand and adapt the City’s affordable housing and
neighborhood improvement strategies to meet long-term needs throughout the
community
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• Consider and adopt the South District form-based code and ensure it can be adapted to
other parts of Iowa City
• Continue implementation of the Parks Master Plan and complete an accompanying
Recreational Facilities Master Plan
• Monitor and report biannually on building and rental permit trends in the former rental
cap neighborhoods
• Support neighborhood activities and improvements that create vibrant, creative spaces
and inspire a sense of place and community
4. Invest in Public Infrastructure, Facilities and Fiscal Reserves
• Carefully prepare for significant financial challenges projected during the final years
of State property tax reform mandates through fiscal year 2024
• Strive to continue to reduce the City’s overall property tax rate
• Evaluate Local Option Sales Tax and other alternative revenues that may be needed to
achieve Iowa City’s strategic objectives and reduce reliance on debt and property taxes
• Develop a long-term plan to improve the pavement condition of City streets
• Initiate physical and financial planning efforts to modernize and expand critical public
facilities
• Consider establishing a cost of development framework that can help guide decisions
on how best to accommodate future growth
5. Strengthen Community Engagement and Intergovernmental Relations
• Initiate a redesign of the City’s website
• Pursue creative engagement techniques with a focus on reaching diverse populations
and neighborhoods
• Work collaboratively with other local governments and strengthen ties with our state
and federal elected delegation
6. Demonstrate Leadership in Climate Action
• Adopt and begin implementation of the Accelerating Iowa City’s Climate Actions
Report
• Track and effectively communicate progress toward reaching the Intergovernmental
Panel on Climate Change’s (IPCC) carbon emission reduction targets adopted locally
by the City Council in 2019
7. Advance Social Justice, Racial Equity, and Human Rights
• Ensure City progress towards increasing diversity of staff in a manner that is reflective
of community demographics
• Complete the phased effort to raise the minimum wage for temporary employees to
$15.00 per hour by July 1, 2021
• Continue emphasis on human rights-based training for city employees, boards and
commissions, and the community
• Establish priorities and ensure resources for increased access and translation of critical
city messages
• Continue partnerships with community organizations through the City’s Social Justice
and Racial Equity grant program
• Develop a coordinated effort across City departments to expand social and recreational
programming for special populations
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The City Council has also promoted private investment and re-development of other targeted areas
throughout the community. The areas that are currently being focused on include the Riverfront
Crossings area, the Downtown District, the Riverside Drive commercial area, and the Foster Road
Urban Renewal Area.
The Riverfront Crossing area is an initiative to revitalize the area south of Iowa City’s downtown
district. This area 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 State 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 1
through 3 of the park began in 2017 and were completed during the fall of 2019; phase 4 of the
park started in 2019 and was completed in the fall of 2020. On the north side of the Riverfront
Crossing area, the University of Iowa recently constructed the Voxman School of Music. On the
opposite side of the street, the redevelopment of an empty lot was completed in the spring of 2019
which includes a 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 Element 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.
In the Downtown District, the City completed a streetscape plan for the Central Business District
which included lighting, landscaping, parking, utility improvements, artwork, and pedestrian
amenities. Reconstruction and enhancements for the Washington Street corridor were completed
in 2017 and reconstruction of Black Hawk mini-park and the downtown pedestrian mall were
completed last year. Other future downtown streetscape projects are scheduled in the five-year
capital improvement program. The downtown has also seen significant private development over
the past few years.
Private development in the downtown area includes a new project started in 2021 which includes
the historical renovation of several commercial buildings along the pedestrian mall and the
construction of an 11-story, 120,000 square foot multi-residential with 102 residential units. The
total project is estimated to cost $54.4 million. Other buildings in the downtown that have
undergone major re-development recently 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 commercial space, a movie theatre and a
bowling alley. The project was estimated to cost $49 million. Also completed was the
redevelopment of the City Hall parking lot and neighboring church into 126 residential units,
parking, and commercial space. The project was estimated to cost $33.4 million. Both of these
projects are mostly complete with the exception of some of the commercial 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 edges of town and a focus on University related downtown foot traffic.
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The Riverside Drive commercial area is an area that stretches from the University of Iowa campus
to the intersection of Highways 1 and 6 and is across the river from the Riverfront Crossings
development area. The development of a 4-story, $16.1 million multi-family/student housing
development in the Riverside Drive area 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 area which will include lighting, trails, landscaping, and other amenities and
improvements. Construction of the streetscape and intersection improvements began in 2018 and
were completed in 2020. Additional streetscape and trail improvements are planned for this area
in the future.
Development of the Foster Road Urban Renewal Area is underway which will convert a 53.29 acre
wooded area north of the Downtown area and near Interstate 80 into a new residential/multi-
residential development with a total estimated cost of approximately $33 million. A 53-unit, 55+
senior living facility was recently constructed, and an additional 52 townhomes are planned
adjacent to the facility. The project also extended the Foster Road arterial from Dubuque Street to
Prairie Du Chien Road, and the area will provide Low-Middle Income (LMI) funding through a tax
increment district that can be used by the City anywhere to assist with the development of
affordable housing.
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
property, 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” payments began in fiscal year 2015 but were capped at the
fiscal year 2017 levels for years thereafter. The cumulative reduction in commercial and industrial
property tax revenues due to this rollback are estimated to be $17,762,000 between fiscal year 2015
to fiscal year 2024, and the maximum reimbursement from the State during that time period would
be $16,986,000 for a net loss in revenues of $776,000. For fiscal years 2015 through 2021, the
City received actual State “backfill” payments for the commercial and industrial rollback totaling
$10,938,967.
This bill also limited the annual taxable valuation growth of residential and agricultural property to
3 percent, 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 to be 60.85% 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 $22,638,000 from fiscal year 2015 to fiscal year 2024. The
City will not receive any money from the State due to lost revenue from this provision.
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SF295 also established a multi-residential property classification that includes mobile home parks,
assisted living 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 cumulative loss from fiscal year 2015 to fiscal
year 2024 is $17,178,027, which will not be reimbursed by the State of Iowa. Fiscal year 2017 was
the first year for this new class of property, and the estimated lost revenue from this provision in
from fiscal year 2017 to fiscal year 2021 was $8,278,737.
Due to the passage of SF295, the City estimates its net revenue losses to be $20,594,000 for fiscal
years 2015 through 2021. The cumulative net revenue loss from fiscal years 2015 through 2024 is
estimated to be $41,126,902. It is possible that this could affect the City’s ability to finance services
at current levels without finding other revenue sources or more efficient ways to deliver services.
The City’s long-term financial planning strategy is to promote targeted economic development,
diversify 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 after depreciation but before 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 development purposes. In fiscal year 2013, the City’s
property tax levy rate was $17.269 per $1,000 of assessed value. The property tax levy rate has
been reduced for eight consecutive years to $15.673 in fiscal year 2022. This has been a reduction
of $1.596 per $1,000 of assessed value or 9.24% over that time period.
In looking at expenses for the FY2021 – FY2023 Financial Plan and FY2022 operating budget, the
City will generally experience increased expenditures; however, at a modest pace, with General
Fund expenditures and total operating expenditures growing at approximately 1% or less from
FY2021 to FY2022. Bargaining unit cost-of-living wage increases are approximately 2% to 4%
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 permanent FTE count increases
to 624.08 primarily due to the conversion of temporary workers to permanent part-time or
permanent full-time positions. In FY2022, three additional positions were added to support the
police department bringing the City’s total FTE to 627.08. In addition, public safety pension
contribution rates increased slightly in FY2022 from 25.31% to 26.18%. The City has averaged a
4.95% increase in its health insurance premium rates over the previous eight years; however, is
expecting an upward trend for health insurance rates in FY2022 and FY2023. Employee
contributions, deductibles, and out-of-pocket maximums for health insurance are all expected to
increase in FY2022, and employee contributions for health insurance are expected to increase in
FY2023, which should help mitigate the impact to the City’s overall premium increase. Although,
personnel costs are growing at a faster pace than 1%, expenditures for services, supplies, capital
outlay, and other financing uses in the General Fund are all projected to decrease in FY2022 and
then remain relatively flat in FY2023.
In balancing the budget for the three-year period, the City attempts to mitigate 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 new 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.
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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 Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020.
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 Annual Comprehensive Financial Report, whose contents conform to program
standards. The Annual Comprehensive Financial Report must satisfy both accounting principles
generally accepted in the United States of America and applicable legal requirements.
The Certificate is valid for a period of one year only. The City has received the Certificate for the
last thirty-six consecutive years. I believe our current report continues to conform 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 1, 2021. In order to qualify for the Distinguished Budget
Presentation Award, the City’s budget document was judged to be proficient or outstanding in several
categories including policy documentation, financial planning, and organization. This is the tenth
consecutive year the City has received this award.
Responsibility and Acknowledgments
The Department of Finance prepared the Annual Comprehensive Financial Report of the City of
Iowa City, Iowa for the fiscal year ended June 30, 2021. The City Council, as required by law, is
responsible for the complete and accurate preparation of the City’s Annual Comprehensive
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 Assistant Finance Director, Nicole Knudtson-
Davies, Accounting Coordinator, Mark Messer, Senior Accountants, TaraLynne Werthmann and
Angie Ogden and Senior Payroll Accountant, Chris Hurlbert.
Also, I 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 Bockenstedt
Director of Finance
11
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, 2020
Executive Director/CEO
12
City of Iowa City
Organization Chart
Community
City Manager
City Manager
Communications Office
Human Resources
Human Rights
Economic Development
Airport
Airport Operations
City Attorney City Clerk Library
Board
Airport
Commission
Library
Library Operations
Library Foundation
Fire
Administration
Emergency Operations
Fire Prevention
Training
Police
Administration
Support Services
Field Operations
Parks &
Recreation
Administration
Recreation
Park Maintenance
Cemetery
Finance
Administration
Accounting
Purchasing
Revenue
Risk Management
Information Technology
Services
Senior
Center
Senior Center
Operations
Neighborhood &
Development Services
Administration
Development Services
Neighborhood Services
Metropolitan Planning
Organization of Johnson County
Public Works
Administration
Engineering
Streets
Wastewater
Water
Resource Management
Equipment
Transportation
Services
Administration
Parking
Public Transportation
City Council
City Manager
City Clerk
City Clerk
City Attorney
City Attorney
13
City of Iowa City, Iowa
Listing of City Officials
June 30, 2021
Elected Officials
Term Expires
Mayor Bruce Teague January 2, 2022
Council Member and Mayor Pro Tem Mazahir Salih January 2, 2022
Council Member Pauline Taylor January 2, 2024
Council Member John Thomas January 2, 2024
Council Member Susan Mims January 2, 2022
Council Member Laura Bergus January 2, 2024
Council Member Janice Weiner January 2, 2024
Appointed Officials
Date of Hire
City Manager Geoff Fruin November 28, 2011
City Clerk Kellie Fruehling July 10, 2000
City Attorney Eric Goers September 7, 2005
Department Directors
Deputy City Manager Redmond Jones II September 20, 2021
Director of Neighborhood Development Services Tracy Hightshoe August 27, 2001
Library Director Elsworth Carman January 2, 2019
Director of Public Works Ron Knoche April 28, 1999
Director of Transportation Services Darian Nagle Gamm May 21, 2008
Senior Center Coordinator LaTasha DeLoach July 31, 2018
Fire Chief John Grier August 10, 1992
Parks and Recreation Director Juli Seydell Johnson January 4, 2016
Director of Finance Dennis Bockenstedt February 15, 2013
Chief of Police Dustin Liston January 11, 2021
14
Financial
Section
Tabs
15
16
17
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18
Management’s Discussion and Analysis
As management of the City of Iowa City, we present this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2021. 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 – 11 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 of the fiscal year ending June 30, 2021 by $702,481,000 (net position). Of
this amount, $109,625,000 (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 $18,338,000 during the fiscal year. Governmental activities
increased by $12,209,000 and business-type activities increased by $6,129,000.
•At the close of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $104,343,000, an increase of $12,575,000 in comparison with the prior year. Of this total
amount, approximately $40,387,000 or 38.7% 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
$40,414,000 or 78.9% 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: 1) government-wide financial statements,
2)fund financial statements; and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements: The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets and deferred outflows of resources,
liabilities and deferred inflows of resources, with the difference reported as net position. Over time, 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 activities presents information showing how the City’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include Public Safety, Public Works (roads and traffic
controls), Culture and Recreation, Community and Economic Development, General Government, and Interest
on long-term debt. The business-type activities of the City include Airport, Housing Authority, Parking,
Sanitation, Stormwater Collection, Transit, Wastewater Treatment, and Water.
The government-wide financial statements may be found on pages 30 – 33 of this report.
19
Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental Funds: Governmental funds are used to account for essentially the same function reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term financing requirements and is typically the
basis that is used in developing the next annual budget.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison.
The City has six major governmental 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. Information is presented separately in the governmental funds balance sheet and in the
governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds.
Data from all other non-major governmental funds is combined into a single aggregated presentation and are
referenced under a single column as “Other Governmental Funds”. Individual fund data on each of these non-
major governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all governmental funds as required by state statute. Budget
comparisons have been provided for the Governmental funds and the Enterprise funds, to demonstrate
compliance with the adopted budget.
The basic governmental funds financial statements can be found on pages 34 – 37 of this report.
Proprietary Funds: The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for its Airport, Housing Authority, Parking, Sanitation, Stormwater
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 services 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, Stormwater 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 purposes and listed under a single heading “Other
Enterprise Funds”. Detailed information for each of the non-major funds is provided in the combining
statements on pages 98 – 100. 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 38 – 40 of this report.
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not available to support the City’s own programs and therefore are not
reflected in the government-wide financial statements. The City has one fiduciary fund: Project Green, which
is maintained as a custodial fund. 20
The basic fiduciary funds financial statements can be found on pages 41 - 42.
Notes to Financial Statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found on pages 43 – 76 of this report.
Other Information: The combining statements referred to in the above paragraphs in connection with non-
major governmental funds 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 of a government’s financial position. In
the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $702,481,000 at the close of the fiscal year ended June 30, 2021.
By far, the largest portion of the City’s net position reflect its investment in capital assets (e.g., land, building,
machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to
acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Iowa City's Net Position
June 30, 2021
(amounts expressed in thousands)
Governmental Business-type
activities activities Total
2021 2020 2021 2020 2021 2020
Current and other assets 212,461$ 192,519$ 126,921$ 121,004$ 339,382$ 313,523$
Capital assets 278,615 273,877 328,262 331,450 606,877 605,327
Total assets 491,076 466,396 455,183 452,454 946,259 918,850
Deferred outflows of resources 14,461 11,421 2,684 2,385 17,145 13,806
Long-term liabilities outstanding 126,757 118,763 36,360 38,531 163,117 157,294
Current and other liabilities 22,513 14,198 6,025 5,971 28,538 20,169
Total liabilities 149,270 132,961 42,385 44,502 191,655 177,463
Deferred inflows of resources 68,657 69,455 611 1,595 69,268 71,050
Net position:
Net investment in capital assets 228,418 220,004 315,915 314,523 544,333 534,527
Restricted 33,664 33,578 14,859 17,558 48,523 51,136
Unrestricted 25,528 21,819 84,097 76,661 109,625 98,480
Total net position 287,610$ 275,401$ 414,871$ 408,742$ 702,481$ 684,143$
21
A portion of the City’s net position, $48,523,000 or 6.9%, represents resources that are subject to external
restrictions on how they may be used. The remaining balance of the unrestricted net position, $109,625,000 or
15.6%, 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, 2021, 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 FY21’s operation.
Governmental Activities: Governmental activities increased the City’s net position by $12,209,000. The
increase in net position of governmental activities is primarily from an increase in property taxes.
The total revenues for governmental activities for FY21 were $101,553,000. Governmental activities are
primarily funded through taxes, $72,058,000 or 71.0%, and grants and contributions, $16,911,000 or 16.7%.
Taxes increased from the prior year by $6,516,000, mostly due to increased property taxes which was due to an
increase in the taxable value of all property and the addition of the emergency levy. Grants and contributions
increased from prior year by $370,000 due mainly to additional funding from the CARES Act.
Expenses for governmental activities totaled $83,187,000. Governmental activities are tracked by function
including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and
General Government. In FY21, Public Safety accounted for the highest portion of governmental expenses,
$30,411,000 or 36.6%, and increased over the prior year due to increases in salaries and benefits. Public Works
expenses of $16,363,000 or 19.7% made up another large portion of the governmental expenses and had a slight
increase in expenses from the prior year. Culture and Recreation expenses of $15,774,000 or 19.0% 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 $6,129,000. The
increase in net position was primarily from the Sanitation, Wastewater Treatment and Stormwater funds.
Sanitation generated operating income of $1,078,000. Wastewater also received $853,000,000 from the state
for the redevelopment of the land that was the site of the former wastewater treatment plant. Wastewater and
Stormwater funds received contributions of infrastructure assets from developers. Wastewater and Stormwater
received $726,000 and $1,203,000, respectively.
Revenues for business-type activities totaled $59,515,000. The primary revenue source for business-type
activities is charges for services, $41,549,000 or 69.8%. In addition for FY21, the City’s business type-activities
had a significant portion, $17,090,000 or 28.7%, 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 FY21 were $59,543,000. Wastewater Treatment represented
the highest portion of business-type activities, $12,520,000 or 21.0%, with Water, $10,177,000 or 17.1%,
Housing Authority, $10,141,000 or 17.0%, Sanitation, $10,045,000 or 16.9% and Transit, $8,107,000 or 13.6%,
making up the remainder of the majority of business-type activities expenses.
22
The graphs on the following pages represent a breakdown of revenue by source and expenses by program area
for governmental and business-type activities.
City of Iowa City's Changes in Net Position
(amounts expressed in thousands)
Governmental Business-type
activities activities Total
2021 2020 2021 2020 2021 2020
Revenues:
Program Revenues:
Charges for services 8,500$ 6,791$ 41,549$ 41,135$ 50,049$ 47,926$
Operating grants and contributions 12,479 13,113 13,102 13,911 25,581 27,024
Capital grants and contributions 2,845 1,915 3,988 4,525 6,833 6,440
General Revenues:
Property taxes 69,482 62,846 - - 69,482 62,846
Other taxes 2,576 2,696 - - 2,576 2,696
Grants and contributions not restricted
to specific purposes 1,587 1,513 - - 1,587 1,513
Earnings on investments 841 2,585 426 1,794 1,267 4,379
Gain on disposal of capital assets 213 111 22 74 235 185
Other 3,030 3,331 428 565 3,458 3,896
Total revenues 101,553 94,901 59,515 62,004 161,068 156,905
Expenses:
Public safety 30,411 29,252 - - 30,411 29,252
Public works 16,363 16,071 - - 16,363 16,071
Culture and recreation 15,774 16,233 - - 15,774 16,233
Community and economic development 8,549 9,383 - - 8,549 9,383
General government 10,529 7,693 - - 10,529 7,693
Interest on long-term debt 1,561 1,452 - - 1,561 1,452
Wastewater treatment - - 12,520 10,807 12,520 10,807
Water - - 10,177 9,302 10,177 9,302
Sanitation - - 10,045 10,145 10,045 10,145
Housing authority - - 10,141 10,021 10,141 10,021
Parking - - 4,613 5,014 4,613 5,014
Airport - - 1,835 2,511 1,835 2,511
Stormwater - - 2,105 2,198 2,105 2,198
Transit - - 8,107 9,041 8,107 9,041
Total expenses 83,187 80,084 59,543 59,039 142,730 139,123
Change in net position before transfers 18,366 14,817 (28) 2,965 18,338 17,782
Transfers (6,157) (6,387) 6,157 6,387 - -
Change in net position 12,209 8,430 6,129 9,352 18,338 17,782
Net position beginning of year 275,401 266,971 408,742 399,390 684,143 666,361
Net position end of year 287,610$ 275,401$ 414,871$ 408,742$ 702,481$ 684,143$
23
24
Public
Safety
Public
Works
Culture and
Recreation
Com and
Econ Dev
General
Govt
Interest
Expense
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
32,000
Dollars ($)Program Area
Governmental Activities
FY2021 Expenses
by Program Area
(amounts expressed in thousands)
Wastewater
Treatment
Water Sanitation
Housing
Authority
Parking
AirportStormwater
Transit
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
Dollars ($)Program Area
Business-Type Activities
FY2021 Expenses
by Program Area
(amounts expressed in thousands)
25
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds: The financial reporting focus of the City’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information may be/is useful in
assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
Fund balances for the governmental funds are reported in classifications 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.
As of the fiscal year ended June 30, 2021, the City’s governmental funds reported combined ending fund
balances of $104,343,000, an increase of $12,575,000 in comparison with the prior year. Of this total amount,
$40,387,000 constitutes unassigned fund balance, which is available to use as working capital for the General
Fund since property tax revenues are received only twice a year and the remainder is available to meet the future
needs of the City. The remainder of the fund balance is not available for new spending because of constraints
imposed externally by creditors, grantors, contributors, or laws or regulations of other governments or
constraints imposed internally on the specific purposes for which these amounts can be spent. The restricted
fund balance of $53,386,000 or 51.2% contains external restraints on its use. The assigned fund balances of
$9,883,000 or 9.5% has been identified by the City to be used for specific purposes. The nonspendable fund
balance is $687,000 or 0.7%, which the City is contractually required to maintain intact or cannot be spent
because it is in a nonspendable format, such as inventories.
The General Fund is the chief operating fund of the City. As of the fiscal year ended June 30, 2021, the
unassigned fund balance of the General Fund was $40,414,000 while General Fund’s total fund balance was
$52,221,000. 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. Unassigned fund balance represents 78.9% of total
General Fund expenditures of $51,238,000, while total fund balance represents 101.9% of that same amount.
During the current fiscal year, the fund balance of the City’s General Fund increased by $8,848,000. This is
due to transfers in from other funds and an increase in property taxes.
The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $18,291,000, an increase of
$2,449,000. 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 $8,178,000, a decrease of $585,000. This fund accounts
for the construction or replacement of other governmental 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 a decrease in grant revenue.
The ending fund balance of the Debt Service Fund was $7,551,000, a decrease of $2,173,000, 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 $3,631,000, an increase of $46,000.
The ending fund balance of the Other Shared Revenue and Grants Fund was $9,312,000, an increase of
$3,557,000 due to $1,800,000 developer fee for affordable housing, $1,016,000 for the emergency levy and a
$914,000 in road use taxes received.
26
Proprietary Funds: The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
The ending net position of the enterprise funds was $393,665,000, an increase in net position of $4,232,000.
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 funds’
net position, $315,915,000 is net investment in capital assets. Unrestricted net position totaled $62,881,000, an
increase of $5,539,000 compared to the previous year.
The Internal Service funds showed net position totaling $51,364,000 as of June 30, 2021, an increase of
$3,554,000 primarily due to operating income in the Equipment Reserve Fund to build up reserves for future
capital outlay.
Budgetary Highlights
The City presents budgetary information as allowed by GASB Statement No. 41. Budgets are based on nine
functional areas as required by state statute, not by fund or fund type.
The City had two budget amendments during the fiscal year. These amendments increased budgeted revenues
by $8,868,000 or 5.4% to a total of $171,890,000 and the expenditure budget by $47,462,000 or 27.0% to a
total of $222,965,000. These increases were due 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
June 30, 2021 amounts to $606,877,000, net of accumulated depreciation. This investment in capital assets,
including land, buildings, improvements other than buildings, equipment, streets, bridges, trails, wastewater
and water systems, and other infrastructure represents the value of resources utilized to provide services to its
citizens. The City’s investment in capital assets for the fiscal year ended June 30, 2021 increased by $4,739,000
for governmental activities compared to the prior year and decreased by $3,189,000 for business-type activities
from the prior year.
The following table reflects the $606,877,000 investment in capital assets, net of accumulated depreciation.
City of Iowa City's Capital Assets
(net of depreciation)
(amounts expressed in thousands)
Governmental Business-type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Land 32,821$ 31,159$ 30,317$ 30,317$ 63,138$ 61,476$
Buildings 37,030 37,467 61,615 63,080 98,645 100,547
Improvements other than
buildings 3,480 3,568 3,756 3,635 7,236 7,203
Machinery and equipment 34,675 31,057 14,784 16,301 49,459 47,358
Infrastructure 165,377 160,625 214,714 214,010 380,091 374,635
Construction in progress 5,233 10,001 3,075 4,107 8,308 14,108
Total 278,616$ 273,877$ 328,261$ 331,450$ 606,877$ 605,327$
27
Major capital asset events during the current fiscal year included the following:
• Two large construction projects were completed during FY 21. The first is the Burlington & Madison
Intersection Improvements. This project reconstructed the intersection of Burlington and Madison to
add turn lanes on Madison, signal improvements, and the replacement of water and sewer mains. This
project had construction in progress balance at the beginning of the year of $944,000 and current year
expenditures of $1,283,000. The total cost of the project that was capitalized was $2,227,000. The
project was funded by bond sales and cash on hand from the Wastewater and Stormwater Funds. The
other project is the construction of McCollister Blvd from Gilbert to Sycamore which had a construction
in progress balance at the beginning of the year of $2,538,000 and current year expenditures of
$2,243,000. The total cost of the project that was capitalized was $4,781,000 and it was primarily
funded through bond sales. This project constructed a new arterial roadway from Gilbert to Sycamore
and included protected bike lanes.
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 $78,555,000.
Of this amount, $53,935,000 comprises debt backed by the full faith and credit of the City. $2,419,000 or 4.5%
of these bonds is debt that will be paid with Tax Increment Financing revenues. $24,620,000 represents revenue
bonds secured solely by specific revenue sources.
The City issued $11,325,000 of General Obligation bonds during FY21. This increase in debt was offset by
the retirement of debt for a net decrease of City’s total bonded debt by $5,670,000.
The City continues to have the same excellent bond rating on its General Obligation bonds that it has had
for the past several years. This rating is given to those bonds judged to be of the best quality and carrying
the smallest degree of investment risks. The City's bond ratings by Moody’s Investors Services, Inc. as of
June 30, 2021 were as follows:
General obligation bonds Aaa
Wastewater treatment revenue bonds Aa2
Water revenue bonds 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 $342,895,000. With outstanding debt applicable
to this limit of $103,895,000 we are utilizing 30.3% of this limit.
More detailed information on debt administration is provided in Note 5 of the financial statements.
City of Iowa City's Outstanding Debt
General Obligation and Revenue Bonds
(amounts expressed in thousands)
Governmental Business-type
Activities Activities Total
2021 2020 2021 2020 2021 2020
General obligation bonds 53,935$ 53,370$ -$ -$ 53,935$ 53,370$
Revenue bonds 12,805 14,790 11,815 16,065 24,620 30,855
Total 66,740$ 68,160$ 11,815$ 16,065$ 78,555$ 84,225$
28
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 $1 million in the General Fund
for FY22 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed
valuation for FY22 is provided below:
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.
General Levy $ 8.100
Debt Service Levy 2.479
Employee Benefits Levy 3.344
Transit Levy 0.950
Liability Insurance Levy 0.290
Library Levy 0.270
Emergency Levy 0.240
Total City Levy $ 15.673
29
Governmental Business-type
Activities Activities Total
Assets
Equity in pooled cash and investments 130,934$ 65,807$ 196,741$
Receivables:
Property tax 67,644 - 67,644
Accounts and unbilled usage 1,002 4,311 5,313
Interest 76 64 140
Notes 5,141 336 5,477
Internal balances (24,229) 24,229 -
Due from other governments 5,651 2,774 8,425
Inventories 786 731 1,517
Assets held for resale 400 - 400
Restricted assets:
Equity in pooled cash and investments 25,056 28,669 53,725
Capital assets:
Land and construction in progress 38,054 33,392 71,446
Other capital assets (net of accumulated depreciation)240,561 294,870 535,431
Total assets 491,076 455,183 946,259
Deferred Outflows of Resources
Pension related deferred outflows 12,833 2,067 14,900
OPEB related deferred outflows 1,628 617 2,245
Total deferred outflows of resources 14,461 2,684 17,145
Liabilities
Accounts payable 2,913 1,260 4,173
Contracts payable 2,840 1,165 4,005
Accrued liabilities 5,958 731 6,689
Interest payable 163 185 348
Deposits 1,124 2,280 3,404
Advances from grantors 9,470 - 9,470
Due to other governments 45 52 97
Unearned revenue - 352 352
Noncurrent liabilities:
Due within one year:
Employee vested benefits 1,546 518 2,064
Bonds payable 11,536 4,597 16,133
Due in more than one year:
Employee vested benefits 1,204 370 1,574
Net pension liability 47,299 9,315 56,614
Other post employment benefits liability 7,030 2,669 9,699
Notes payable 211 - 211
Bonds payable 57,931 7,645 65,576
Landfill closure/post-closure liability - 11,246 11,246
Total liabilities 149,270$ 42,385$ 191,655$
(continued)
(amounts expressed in thousands)
City of Iowa City, Iowa
Statement of Net Position
June 30, 2021
30
Governmental Business-type
Activities Activities Total
Deferred Inflows of Resources
Pension related deferred inflows 1,253$ 319$ 1,572$
OPEB related deferred inflows 492 187 679
Deferred amount on refunding - 105 105
Succeeding year property taxes 66,912 - 66,912
Total deferred inflows of resources 68,657 611 69,268
Net Position
Net investment in capital assets 228,418 315,915 544,333
Restricted for or by:
Employee benefits 3,973 - 3,973
Capital projects:
Expendable 12,266 - 12,266
Nonexpendable 218 - 218
Debt service 7,388 - 7,388
Police 271 - 271
Other purposes
Expendable 6,300 - 6,300
Nonexpendable 69 - 69
Bond ordinance - 9,814 9,814
State statute - 3,359 3,359
Future improvements - 404 404
Grant agreement 3,179 1,282 4,461
Unrestricted 25,528 84,097 109,625
Total net position 287,610$ 414,871$ 702,481$
The notes to the financial statements are an integral part of this statement.
June 30, 2021
(amounts expressed in thousands)
City of Iowa City, Iowa
Statement of Net Position (continued)
31
32
Operating Capital
Charges Grants and Grants and Governmental Business-type
Functions/Programs:Expenses for Services Contributions Contributions Activities Activities Total
Governmental activities:
Public safety 30,411$ 4,277$ 281$ -$(25,853)$ -$(25,853)$
Public works 16,363 482 10,078 2,845 (2,958) -(2,958)
Culture and recreation 15,774 322 10 -(15,442)-(15,442)
Community and economic development 8,549 1,837 1,920 -(4,792)- (4,792)
General government 10,529 1,582 190 -(8,757)-(8,757)
Interest on long-term debt 1,561 - - - (1,561) - (1,561)
Total governmental activities 83,187 8,500 12,479 2,845 (59,363) - (59,363)
Business-type activities:
Wastewater treatment 12,520 12,155 -1,580 -1,215 1,215
Water 10,177 9,934 45 834 -636 636
Sanitation 10,045 11,944 18 --1,917 1,917
Housing authority 10,141 296 9,691 --(154)(154)
Parking 4,613 3,758 ---(855)(855)
Airport 1,835 376 332 267 -(860)(860)
Stormwater 2,105 1,701 -1,230 -826 826
Transit 8,107 1,385 3,016 77 - (3,629) (3,629)
Total business-type activities 59,543 41,549 13,102 3,988 - (904) (904)
Total 142,730$ 50,049$ 25,581$ 6,833$ (59,363) (904)(60,267)
General revenues:
Property taxes, levied for general purposes 69,482 -69,482
Hotel/motel tax 938 -938
Gas and electric tax 644 -644
Utility franchise tax 994 -994
Grants and contributions not restricted to specific purposes 1,587 -1,587
Earnings on investments 841 426 1,267
Gain on disposal of capital assets 213 22 235
Miscellaneous 3,030 428 3,458
Transfers (6,157) 6,157 -
Total general revenues and transfers 71,572 7,033 78,605
Changes in net position 12,209 6,129 18,338
Net position beginning of year 275,401 408,742 684,143
Net position end of year 287,610$ 414,871$ 702,481$
The notes to the financial statements are an integral part of this statement.
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
City of Iowa City, Iowa
Statement of Activities
For the Year Ended June 30, 2021
(amounts expressed in thousands)
33
Bridge,
Other Street, and
Shared Traffic Other
Revenue and Employee Other Control Debt Governmental
General Grants Benefits Construction Construction Service Funds Total
Assets
Equity in pooled cash and investments 51,870$ 13,671$ 3,517$ 4,612$ 8,559$ 7,122$ 1,861$ 91,212$
Receivables:
Property tax 40,959 10 15,264 - - 10,896 515 67,644
Accounts and unbilled usage 508 3 - 4 311 - - 826
Interest 24 2 - 6 9 3 - 44
Notes 1,073 520 - - - 249 3,299 5,141
Due from other funds 174 - - - - - - 174
Advances to other funds - - - - - 67 - 67
Due from other governments 2,080 1,428 371 327 1,322 - 59 5,587
Inventories - 218 - - - - - 218
Assets held for resale 400 - - - - - - 400
Restricted assets:
Equity in pooled cash and investments 2,134 3,615 - 7,910 11,397 - - 25,056
Total assets 99,222$ 19,467$ 19,152$ 12,859$ 21,598$ 18,337$ 5,734$ 196,369$
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities
Accounts payable 1,672$ 442$ 20$ 33$ 20$ -$ 90$ 2,277$
Contracts payable - - - 879 1,961 - - 2,840
Accrued liabilities 1,957 128 2 - 4 - 30 2,121
Advances from other funds - 67 - 3,187 - - - 3,254
Due to other governments 38 - - - - - - 38
Liabilities payable from restricted assets:
Deposits 1,115 9 - - - - - 1,124
Advances from grantors 19 9,165 - 261 - - 25 9,470
Total liabilities 4,801 9,811 22 4,360 1,985 - 145 21,124
Deferred Inflows of Resources
Unavailable revenues:
Succeeding year property taxes 40,568 - 15,128 - - 10,786 430 66,912
Grants 4 344 - 226 1,322 - - 1,896
Other 1,628 - 371 95 - - - 2,094
Total deferred inflows of resources 42,200 344 15,499 321 1,322 10,786 430 70,902
Fund Balances
Nonspendable 469 218 - - - - - 687
Restricted 1,455 9,094 3,631 8,178 18,291 7,551 5,186 53,386
Assigned 9,883 - - - - - - 9,883
Unassigned 40,414 - - - - - (27) 40,387
Total fund balances 52,221 9,312 3,631 8,178 18,291 7,551 5,159 104,343
Total liabilities, deferred inflows
of resources and fund balances 99,222$ 19,467$ 19,152$ 12,859$ 21,598$ 18,337$ 5,734$ 196,369$
The notes to the financial statements are an integral part of this statement.
City of Iowa City, Iowa
Balance Sheet
Governmental Funds
June 30, 2021
(amounts expressed in thousands)
Special Revenue Capital Projects
34
Total governmental fund balances 104,343$
Amounts reported for governmental activities in the statement
of net position are different because:
Internal service funds are used by management to charge the costs
of certain activities to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net position.51,364
Other long-term assets are not available to pay for current period
expenditures and therefore are unavailable in the funds:
Grants and other receivables - Earned but unavailable.3,990
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in the funds. 261,627
Pension and OPEB related deferred outflows of resources and
deferred inflows of resources are not due and payable in the
current period and therefore are not reported in the funds.
Deferred outflows of resources 14,032$
Deferred inflows of resources (1,666) 12,366
Net pension liabilities are not due and payable in the
current period and therefore are not reported in the funds.(45,736)
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds.(2,621)
Accrued post employment benefit liabilities are not due and
payable in the current period and therefore are not reported
in the funds.(6,666)
Bonds payable are not due and payable in the current period
and therefore are not reported in the funds.(69,467)
Notes payable are not due and payable in the current period
and therefore are not reported in the funds.(211)
Accrued interest on bonds (163)
Internal balance due to integration of internal service funds (21,216)
Total net position of governmental activities 287,610$
The notes to the financial statements are an integral part of this statement.
(amounts expressed in thousands)
City of Iowa City, Iowa
Reconciliation of the Balance Sheet of the
Governmental Funds to the Statement of Net Position
June 30, 2021
35
Bridge,
Other Street, and
Shared Traffic Other
Revenue and Employee Other Control Debt Governmental
General Grants Benefits Construction Construction Service Funds Total
Revenues
Taxes 42,635$ 1,016$ 14,162$ -$ -$ 11,141$ 3,104$ 72,058$
Licenses and permits 2,541 - - - - - - 2,541
Intergovernmental 5,924 10,112 321 47 1,666 250 1,807 20,127
Charges for services 808 1,875 317 91 355 - - 3,446
Fines and forfeits 375 - - - - - - 375
Use of money and property 456 95 - 48 69 62 43 773
Miscellaneous 1,688 94 - 10 277 - 43 2,112
Total revenues 54,427 13,192 14,800 196 2,367 11,453 4,997 101,432
Expenditures
Current:
Public safety 24,764 - 1,374 29 - - - 26,167
Public works 2,076 6,494 - 225 2,652 - - 11,447
Culture and recreation 12,407 - - 572 - - - 12,979
Community and economic development 3,487 910 - 163 - - 3,745 8,305
General government 6,676 148 417 2,501 - 46 - 9,788
Debt service:
Principal - - - - - 12,745 - 12,745
Interest - - - - - 1,905 - 1,905
Capital outlay 1,828 267 - 4,138 5,940 - - 12,173
Total expenditures 51,238 7,819 1,791 7,628 8,592 14,696 3,745 95,509
Excess (deficiency) of revenues over
(under) expenditures 3,189 5,373 13,009 (7,432) (6,225) (3,243) 1,252 5,923
Other Financing Sources (Uses)
Issuance of debt - - - 4,552 6,184 589 - 11,325
Sale of capital assets 233 - - - - - - 233
Premiums on issuance of bonds - - - 588 801 75 - 1,464
Transfers in 12,567 1,622 - 1,729 3,848 1,026 431 21,223
Transfers out (7,141) (3,438) (12,963) (22) (2,159) (620) (1,250) (27,593)
Total other financing sources and (uses)5,659 (1,816) (12,963) 6,847 8,674 1,070 (819) 6,652
Net change in fund balances 8,848 3,557 46 (585) 2,449 (2,173) 433 12,575
Fund Balances, Beginning 43,373 5,755 3,585 8,763 15,842 9,724 4,726 91,768
Fund Balances, Ending 52,221$ 9,312$ 3,631$ 8,178$ 18,291$ 7,551$ 5,159$ 104,343$
The notes to the financial statements are an integral part of this statement.
Special Revenue Capital Projects
City of Iowa City, Iowa
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2021
(amounts expressed in thousands)
36
Net change in fund balances - total governmental funds 12,575$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures while governmental
activities report depreciation expense to allocate those expenditures over the
life of the asset. Capital outlays and contributed capital assets exceeded
depreciation expense in the current year as follows:
Expenditures for capital assets 9,992$
Transfers of capital assets (to)\from enterprise funds - net (289)
Transfers of capital assets (to)\from internal service funds - net (86)
Capital assets contributed 1,099
Depreciation expense (8,366) 2,350
Bond proceeds are reported as other financing sources in governmental funds
and thus contribute to the change in fund balance. In the statement of net
position, however, issuing debt increases long-term liabilities and does not affect
the statement of activities. Similarly, repayment of principal is an expenditure in
the governmental funds but reduces the liability in the statement of net position.
Debt issued (11,325)
Premium on bonds issued (1,464)
Repayments of debt 12,745
Amortization of premium 349 305
Because some revenues will not be collected for several months after the
City's year end, they are not considered available revenues in the governmental funds.(1,259)
Some expenses reported in the statement of activities do not require the
use of current financial resources and therefore are not reported as
expenditures in governmental funds:
Change in accrued compensated absences (26)
Pension expense (2,896)
Change in accrued post employment benefit liability (361)
Change in accrued interest on debt (5)
In the statement of activities, only the gain on the sale of the capital assets is
recognized, whereas in the governmental funds, the proceeds from the sale
increased financial resources. Thus, the change in net position differs from the
change in fund balance by the cost of the capital asset sold.(131)
Internal service funds are used by management to charge the costs
of certain activities to individual funds. The net revenue of certain activities of
internal service funds is reported with governmental activities.1,657
Change in net position of governmental activities 12,209$
The notes to the financial statements are an integral part of this statement.
(amounts expressed in thousands)
For the Year Ended June 30, 2021
City of Iowa City, Iowa
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
37
GovernmentalActivities -
Other Internal
Wastewater Housing Enterprise ServiceTransitTreatmentWaterSanitationStormwaterAuthorityFundsTotalFunds
Assets
Current assets:
Equity in pooled cash and investments 7,630$ 22,391$ 9,978$ 14,944$ 2,927$ 4,739$ 3,198$ 65,807$ 39,722$
Receivables (net of allowance for uncollectibles):
Accounts and unbilled usage 76 1,585 1,294 796 185 27 348 4,311 176
Interest 4 14 8 18 1 18 1 64 32
Notes - - - - - 336 - 336 -
Due from other governments 2,265 2 9 36 - 46 416 2,774 64
Inventories 395 - 336 - - - - 731 568
Total current assets 10,370 23,992 11,625 15,794 3,113 5,166 3,963 74,023 40,562
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments 4 6,286 4,844 14,637 - 2,783 115 28,669 -
Advances to other funds - - - 4,224 - -- 4,224 -
Capital assets:
Land 2,630 759 6,296 2,264 2,264 620 15,484 30,317 685
Buildings 15,399 36,858 24,019 5,402 - 7,427 47,105 136,210 1,481
Improvements other than buildings - 7,802 2,742 440 - 34 773 11,791 50
Machinery and equipment 12,348 13,012 11,566 252 27 71 2,153 39,429 25,094
Infrastructure 955 160,722 73,357 19,344 70,098 - 17,451 341,927 3,605
Accumulated depreciation (15,325) (93,817) (45,081) (19,433) (18,952) (5,005) (36,874) (234,487) (13,993)
Construction in progress - 1,533 113 - 1,277 - 152 3,075 66
Total noncurrent assets 16,011 133,155 77,856 27,130 54,714 5,930 46,359 361,155 16,988
Total assets 26,381 157,147 89,481 42,924 57,827 11,096 50,322 435,178 57,550
Deferred Outflows of Resources
Pension related deferred outflows 584 316 391 417 30 133 196 2,067 346
OPEB related deferred outflows 188 84 116 129 6 36 58 617 83
Total deferred outflows of resources 772 400 507 546 36 169 254 2,684 429
Liabilities
Current liabilities:
Accounts payable 282 241 278 241 23 99 96 1,260 636
Contracts payable 74 961 17 - 73 - 40 1,165 -
Accrued liabilities 248 93 126 141 12 45 66 731 3,837
Employee vested benefits 142 70 87 109 8 41 61 518 72
Due to other funds - - - - - - 174 174 -
Due to other governments - - 16 6 - 30 - 52 7
Unearned revenue - - - - - 352 - 352 -
Interest payable - 100 85 - - - - 185 -
Bonded debt payable (net of unamortized
premium and discounts)- 2,877 1,720 - - - - 4,597 -
Total current liabilities 746 4,342 2,329 497 116 567 437 9,034 4,552
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits 4 - 1,111 10 - 1,146 9 2,280 -
Advances from other funds - - - - - - 1,037 1,037 -
Employee vested benefits 95 52 58 83 6 32 44 370 57
Bonded debt payable (net of unamortized
premium and discounts)- 2,153 5,492 - - - - 7,645 -
Net pension liability 2,669 1,412 1,789 1,859 120 594 872 9,315 1,563
Other post employment benefits liability 810 363 503 559 28 154 252 2,669 364
Landfill closure/postclosure liability - - - 11,246 - - - 11,246 -
Total noncurrent liabilities 3,578 3,980 8,953 13,757 154 1,926 2,214 34,562 1,984
Total liabilities 4,324 8,322 11,282 14,254 270 2,493 2,651 43,596 6,536
Deferred Inflows of Resources
Pension related deferred inflows 92 48 61 64 4 20 30 319 53
OPEB related deferred inflows 57 25 35 39 2 11 18 187 26
Deferred amount on refunding - 49 56 - - - - 105 -
Total deferred inflow of resources 149 122 152 103 6 31 48 611 79
Net Position
Net investment in capital assets 16,007 121,790 65,744 8,269 54,714 3,147 46,244 315,915 16,988
Restricted by bond ordinance - 6,185 3,629 - - - - 9,814 -
Restricted by state statute - - 3,359 - - - 3,359 -
Restricted for future improvements - - - - - - 404 404 -
Restricted by grant agreement - - - - - 1,282 - 1,282 -
Unrestricted 6,673 21,128 9,181 17,485 2,873 4,312 1,229 62,881 34,376
Total net position 22,680$ 149,103$ 78,554$ 29,113$ 57,587$ 8,741$ 47,877$ 393,655$ 51,364$
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds.21,216
Net position of business-type activities 414,871$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
City of Iowa City, Iowa
Statement of Net Position
Proprietary Funds
June 30, 2021
(amounts expressed in thousands)
38
Governmental
Activities -
Other Internal
Wastewater Housing Enterprise Service
Transit Treatment Water Sanitation Stormwater Authority Funds Total Funds
Operating Revenues:
Charges for services 1,385$ 12,155$ 9,934$ 11,944$ 1,701$ 296$ 4,134$ 41,549$ 22,638$
Miscellaneous 79 89 15 96 17 84 48 428 -
Total operating revenues 1,464 12,244 9,949 12,040 1,718 380 4,182 41,977 22,638
Operating Expenses:
Personal services 4,634 3,417 3,839 3,913 354 1,029 1,988 19,174 2,606
Commodities 781 1,960 1,439 295 74 19 421 4,989 2,441
Services and charges 1,672 2,497 2,193 5,921 292 8,853 1,843 23,271 13,330
7,087 7,874 7,471 10,129 720 9,901 4,252 47,434 18,377
Depreciation 1,039 4,757 2,609 833 1,385 251 2,263 13,137 2,313
Total operating expenses 8,126 12,631 10,080 10,962 2,105 10,152 6,515 60,571 20,690
Operating income (loss)(6,662) (387) (131) 1,078 (387) (9,772) (2,333) (18,594) 1,948
Nonoperating Revenues (Expenses):
Gain (loss) on disposal of capital assets 16 - (95) (6) - - - (85) 306
Operating grants 3,016 - 45 18 - 9,691 332 13,102 11
Interest income 33 205 54 86 10 23 15 426 67
Interest expense - - (128) - - - - (128) -
Total nonoperating revenues (expenses)3,065 205 (124) 98 10 9,714 347 13,315 384
Income (loss) before capital contributions
and transfers (3,597) (182) (255) 1,176 (377) (58) (1,986) (5,279) 2,332
Capital contributions 77 1,580 965 - 1,388 - 267 4,277 86
Transfers in 4,177 474 906 631 1,016 - 100 7,304 1,247
Transfers out - (100) (7) (1,893) (3) (51) (16) (2,070) (111)
Change in net position 657 1,772 1,609 (86) 2,024 (109) (1,635) 4,232 3,554
Net Position, Beginning 22,023 147,331 76,945 29,199 55,563 8,850 49,512 47,810
Net Position, Ending 22,680$ 149,103$ 78,554$ 29,113$ 57,587$ 8,741$ 47,877$ 51,364$
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds 1,897
Change in net position of business-type activities 6,129$
The notes to the financial statements are an integral part of this statement.
City of Iowa City, Iowa
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2021
(amounts expressed in thousands)
Business-type Activities - Enterprise Funds
39
Governmental
Activities -
Other Internal
Wastewater Housing Enterprise Service
Transit Treatment Water Sanitation Stormwater Authority Funds Total Funds
Cash Flows From Operating Activities
Receipts from customers and users 1,468$ 12,098$ 9,749$ 11,962$ 1,727$ 641$ 3,895$ 41,540$ 22,584$
Payments to suppliers (2,535) (4,365) (3,628) (5,533) (368) (8,827) (2,815) (28,071) (15,739)
Payments to employees (4,393) (3,348) (3,741) (3,736) (341) (998) (1,995) (18,552) (2,454)
Net cash flows from (used for) operating activities (5,460) 4,385 2,380 2,693 1,018 (9,184) (915) (5,083) 4,391
Cash Flows From Noncapital Financing Activities
Grants received 3,247 (6) 40 13 - 9,675 844 13,813 10
Transfers from other funds 4,177 3 3 631 264 - 100 5,178 1,247
Transfers to other funds - (100) (7) (1,893) (3) (51) (16) (2,070) (111)
Repayment/(payment) of notes receivable - - - - - 21 - 21 -
Advances to other funds - - - - - - 174 174 -
Repayment of advances from other funds - - - 320 - - (275) 45 -
Net cash flows from (used for) noncapital financing
activities 7,424 (103) 36 (929) 261 9,645 827 17,161 1,146
Cash Flows From Capital and Related Financing
Activities
Capital grants received 77 853 - - - - 184 1,114 -
Acquisition and construction of property and
equipment - (997) (452) (14) (836) (2,089) (258) (4,646) (4,753)
Proceeds from sale of property 16 - 6 1 - - - 23 313
Principal paid on bonded debt - (2,620) (1,629) - - - - (4,249) -
Interest paid on bonded debt - (321) (181) - - - - (502) -
Net cash flows from (used for) capital and related
financing activities 93 (3,085) (2,256) (13) (836) (2,089) (74) (8,260) (4,440)
Cash Flows From Investing Activities
Interest on investments 48 309 79 165 17 47 25 690 275
Net increase (decrease) in cash and cash equivalents 2,105 1,506 239 1,916 460 (1,581) (137) 4,508 1,372
Cash and Cash Equivalents, Beginning 5,529 27,171 14,583 27,665 2,467 9,103 3,450 89,968 38,350
Cash and Cash Equivalents, Ending 7,634$ 28,677$ 14,822$ 29,581$ 2,927$ 7,522$ 3,313$ 94,476$ 39,722$
Reconciliation of operating income (loss)
to net cash flows from (used for) operating activities:
Operating income (loss)(6,662)$ (387)$ (131)$ 1,078$ (387)$ (9,772)$ (2,333)$ (18,594)$ 1,948$
Adjustments to reconcile operating income
(loss) to net cash flows from (used for) operating activities:
Depreciation expense 1,039 4,757 2,609 833 1,385 251 2,263 13,137 2,313
Changes in:
Receivables:
Accounts and unbilled usage 5 (159) (161) (133) 9 8 (285) (716) (33)
Due from other governments (5) 13 (2) 55 - 1 (2) 60 (21)
Inventories (17) - 29 - - - - 12 (53)
Accounts payable (137) 92 (26) 93 (2) 41 (551) (490) 5
Contracts payable 72 - - - - - - 72 -
Accrued liabilities 62 4 14 23 3 8 5 119 109
Employee vested benefits (1) 1 (9) 16 8 11 - 26 (7)
Due to other governments - - 1 4 - 4 - 9 7
Unearned revenue - - - - - 155 - 155 -
Deposits 4 - (37) - - 97 - 64 -
Net pension liability 442 239 283 329 17 75 80 1,465 282
Deferred outflows of resources (83) (49) (51) (69) (6) (17) (24) (299) (48)
Deferred inflows of resources (268) (166) (194) (184) (12) (63) (97) (984) (152)
Other post employment benefits liability 89 40 55 62 3 17 29 295 41
Landfill closure/postclosure liability - - - 586 - - - 586 -
Total adjustments 1,202 4,772 2,511 1,615 1,405 588 1,418 13,511 2,443
Net cash flows from (used for) operating activities (5,460)$ 4,385$ 2,380$ 2,693$ 1,018$ (9,184)$ (915)$ (5,083)$ 4,391$
Noncash Investing, Capital, and
Financing Activities:
Contributions of capital assets from
government and others -$ 1,198$ 1,868$ -$ 2,140$ -$ -$ 5,206$ 93$
Capital grants not yet received -$ -$ -$ -$ -$ -$ 163$ 163$ -$
Operating grants not yet received 2,233$ 2$ 7$ 12$ -$ 46$ 251$ 2,551$ -$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
City of Iowa City, Iowa
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
(amounts expressed in thousands)
40
Project Green
Assets
Equity in pooled cash and investments 72$
Total assets 72
Liabilities
Accounts payable 9
Total liabilities 9
Net Position
Restricted for an organization 63$
The notes to the financial statements are an integral part of this statement.
June 30, 2021
(amounts expressed in thousands)
City of Iowa City, Iowa
Statement of Fiduciary Net Position
Custodial Fund
41
Project Green
Additions:
Contributions 24$
Total additions 24
Deductions:
Services and charges 41
Total deductions 41
Change in net position (17)
Net Position, Beginning 80
Net Position, Ending 63$
City of Iowa City, Iowa
Statement of Changes in Fiduciary Net Position
Custodial Fund
For the Year Ended June 30, 2021
(amounts expressed in thousands)
42
City of Iowa City, Iowa
Notes to Financial Statements
June 30, 2021
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, 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.
The financial statements of the City have been prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant accounting policies of the City are
described below.
The Reporting Entity
For financial reporting purposes, the City includes all of its funds, organizations, agencies, boards,
commissions, and authorities. The City has also considered all potential component units for which it is
financially accountable, and other organizations for which the nature and significance of their relationship
with the City are such that exclusion would cause the City’s financial statements to be misleading or
incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in
determining financial accountability. These criteria include appointing a voting majority of an
organization’s governing body, and (1) the ability of the City to impose its will on that organization or (2)
the potential for the organization to provide specific benefits to or impose specific financial burdens on the
City. There were no component units required to be included.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net 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 business-type activities, which rely to a significant extent on fees and charges for
support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements
of a particular function or segment. Taxes and other items not properly included among program revenues
are reported as general revenues.
As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s water and sewer function and
various other functions of the government. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
43
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Description of Funds
These financial statements include all funds owned or administered by the City or for which the City acts
as custodian.
The 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 carrying on specific activities in accordance with laws, regulations, or other restrictions.
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its “measurement
focus.” The government-wide financial statements and proprietary funds are accounted for on the flow of
economic resources measurement focus and use the accrual basis of accounting. Agency funds do not have
a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are
recorded when earned and expenses are recorded at the time liabilities are incurred.
All governmental funds are accounted for using a current financial resources measurement focus, which
generally includes only current assets and current liabilities on the balance sheet. The modified accrual
basis of accounting is used for these funds. Under the modified accrual basis, revenue is recognized when
susceptible to accrual, which is in the period in which it becomes both available (collectible within the
current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the
amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental
revenue, and interest earned on investments (if they are collected within 60 days after the year-end).
Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term
debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only
when payment is due.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Other Shared Revenue 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 Employee Benefits Fund is used to account for the employee benefits related to those
employees who are paid through governmental fund types, which are funded by a separate
property tax levy.
The Other Construction Fund accounts for the construction or replacement of other City general fixed
assets, such as administrative buildings with various funding sources, including general obligation
bonds, intergovernmental revenues, and contributions.
The Bridge, Street, and Traffic Control Construction Fund accounts for the construction or
replacement of infrastructure fixed assets, such as streets, bridges, dams, sidewalks, and lighting
systems.
44
The Debt Service 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 Wastewater Treatment Fund is used to account for the operation and maintenance of the
wastewater treatment facility and sanitary sewer system.
The Water Fund is used to account for the operation and maintenance of the water system.
The Sanitation Fund is used to account for the operation and maintenance of the solid waste
collection system and landfill.
The Stormwater Fund is used to account for the operation and maintenance of the stormwater
utility system.
The Housing Authority Fund is used to account for the operations and activities of the City’s low
and moderate income housing assistance and public housing programs.
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 Maintenance Fund, Central Services Fund, Loss Reserve Fund, and the Information Technology
Fund.
The City also reports a custodial fund account for monies held for Project Green, a local 501(c)(3) not-for-
profit agency to which the City provides accounting and investing services.
Proprietary funds distinguish operating revenues and expenses from non-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 expenses, 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.
45
Uses of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue, expenditures and expenses, as appropriate, during the
reporting period. Actual results could differ from these estimates. Material estimates that are particularly
susceptible to significant change in the near-term relate to the determination of other postemployment
benefit 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 processed. Substantially all investment activity is carried on by the City in an investment pool, except
for those funds required to maintain their investments separately. The earnings on the pooled investments
are allocated to the funds on a systematic basis. All investments are stated at fair value except for the Iowa
Public Agency Investment Trust (IPAIT) which is valued at amortized cost pursuant to Rule 2a-7 under the
Investment Company Act of 1940.
For the purpose of the Statement of Cash Flows, restricted and non-restricted investments with a maturity
of three months or less when purchased are considered cash equivalents.
Receivables and Revenue Recognition
Property tax receivable is recognized in governmental funds on the levy or lien date, which is the date that
the tax asking is certified by the City to the County Board of Supervisors. Current year delinquent property
tax receivable represents unpaid taxes from the current year. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the
budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor
by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget
certification for the following fiscal year becomes effective on the first day of that year. Although the
succeeding year property tax receivable has been recorded, 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, fees and refunds, charges for services
(in governmental fund types), miscellaneous, and other revenues are recorded as revenue when received in
cash because they are generally not measurable until actually received.
Inventories
Inventories are recognized only in those funds in which they are material to the extent of affecting
operations. For the City, these are the 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 Grants Fund and the average cost method
for the Transit, Water and Equipment Maintenance Fund.
46
Capital Assets
Capital assets, which include property, buildings, equipment, and infrastructure assets (e.g., roads, bridges,
water mains, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. The City follows the policy of not requiring
capitalization of an asset with an initial, individual cost of less than $50,000 for infrastructure, $25,000 for
buildings and improvements, 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 useful lives:
Infrastructure 3 – 100 years
Buildings and structures 20 – 50 years
Improvements other than buildings 10 – 50 years
Vehicles 2 – 20 years
Other equipment 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 government-wide statements, they are amortized over the
life of the bonds.
Compensated Absences
Permanent City employees accumulate vacation and sick leave hours for subsequent use or for payment
upon death, resignation, or retirement. The City pays its employees (except firefighters) one-half of the
accumulated sick leave at the time of termination on the basis of the employee’s then effective hourly base
salary, provided that the dollar amount of the payment may be up to, but not exceed, the amount that an
employee would be paid if the employee had terminated on June 28, 1985. Employees hired on or after
June 29, 1985, are not eligible for payment of accumulated sick leave upon termination, death, or retirement.
Pensions
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 terms.
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 7).
47
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
OPEB related items.
Budgetary and Legal Appropriation and Amendment Policies
The City prepares and adopts an annual function budget, as prescribed by Iowa statutes, for all funds except
internal service and agency funds. This is formalized in a separate budgetary report, the Financial Plan.
This budget is adopted on or before March 15 of each year to become effective July 1 and constitutes the
City’s appropriation for each program and purpose specified therein until amended. The adopted budget
must include the following:
a. Expenditures for each function:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business-type/enterprise
b. The amount to be raised by property taxation
c. Income from sources other than property taxation
d. Transfers in and transfers out
The legal level of control (the level at which expenditures may not legally exceed appropriations) is the
function level for all funds combined, rather than at the individual fund level. Management can transfer
appropriations within a function, within a fund type, and between fund types, without the approval of the
governing body so long as the total budget by function area will not be exceeded. It is necessary, therefore,
to aggregate the expenditures of the budgeted activities within the governmental fund types with the
expenditures of the budgeted activities within the enterprise funds on a function basis, and to compare such
function totals to function budgeted totals in order to demonstrate legal compliance with the budget. The
City’s budget for revenue focuses on 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.
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A City budget for the current fiscal year may be amended for any of the following purposes as prescribed
by Iowa statute:
a. To permit the appropriation and expenditure of unexpended, unencumbered cash balances on
hand at the end of the preceding fiscal year.
b. To permit the appropriation and expenditure of amounts anticipated being available from sources
other than property taxation.
c. To permit transfers between funds.
d. To permit transfers between 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 $10,860,737 in revenues and other
financing sources and by $50,013,902 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
structure of nine functional areas as required by state statute for its legally adopted budget.
Restricted Assets
Assets within the individual funds, which can be designated by the City Council for any use within the
fund’s purpose, are considered to be unrestricted assets. Assets, which are restricted for specific uses by
bonded debt requirements, grant provisions, or other requirements, are classified as restricted assets.
Liabilities, which are payable from restricted assets, are classified as such.
Classification of Fund Balances
Fund balances for the governmental funds are reported in classifications based on the nature of any
limitations requiring the use of resources for specific purposes (see Note 8).
2. Cash and Pooled Investments
The City’s deposits in banks at June 30, 2021 were entirely covered or collateralized by federal depository
insurance, national credit union administration, letters of credit held by the City or by the State Sinking
Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments
against the depositories to insure there will be no loss of public funds.
The City is authorized by statute to invest public funds in obligations of the United States government, its
agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured Iowa
depository institutions approved by City Council and secured pursuant to the limitations set forth in Chapter
12C of the Code of Iowa; prime eligible bankers acceptances; certain high rated commercial paper or other
short-term 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 federal Investment Company Act of 1940; and warrants or improvement
certificates of a drainage district.
49
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 1 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
$6,182,529, the Federal Farm Credit Bank Note securities of $3,860,844, the Federal National Mortgage
Association securities of $6,258,346 and the Federal Home Loan Bank securities of $13,836,447 were
determined using the last reported sales price at current exchange rates (Level 1 inputs).
The fair value measurement for the Credit Agricole CIB NY Corporation commercial paper of $4,994,789
and the Natixis NY Branch commercial paper of $4,994,479 was determined using the last reported sales
price at current exchange rates (Level 1 inputs).
The City had no other investments meeting the disclosure requirements of Governmental Accounting
Standards Board Statement No. 72.
In addition, the City had investments in the Iowa Public Agency Investment Trust (IPAIT), which are valued
at an amortized cost of $79,188, 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.
IPAIT is a common trust established under Iowa law pursuant to Iowa Code Chapter 28E in 1987 to enable
eligible Iowa public agencies to safely and effectively invest their available operating and reserve funds.
IPAIT is registered under the Investment Company Act of 1940.
The IPAIT portfolios have followed established money market mutual fund investment parameters
designed to maintain a $1 per unit net asset value since inception and were registered with the Securities
and Exchange Commission (SEC).
Interest rate risk - The City’s investment policy limits the investment of operating funds to investments that
mature within 397 days. The portion of operating funds in excess of 33% of operating funds may be invested
in certificates of deposit which mature within 63 months or less. Funds not identified as operating funds
may be invested in instruments with maturities longer than 397 days.
Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings
issued by nationally recognized statistical rating organizations. It is the City’s policy to comply with rating
restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody’s Investors
service as it is a state security that is backed by the full faith and credit of the issuing government and is not
subject to credit risk.
Concentration of credit risk. The City investment policy limits the amount that may be invested in any one
issuer to a maximum amount approved by the City Council.
At June 30, 2021 the City of Iowa City had the following investments:
Fair
Investment Value Maturities
Federal Home Loan Mortgage Corporation Notes 6,182,529$ July 2023 to February 2025
Federal Farm Credit Bank Notes 3,860,844 December 2024 to September 2040
Federal National Mortgage Association 6,528,346 July 2023 to June 2029
Federal Home Loan Bank 13,836,447 September 2025 to January 2027
Credit Agricole CIB NY 4,994,789 January 2022
Natixis NY Branch 4,994,479 December 2021
40,397,434$
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Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings
associated with other funds. These funds are the Employee Benefits, Other Shared Revenue and Grants,
and Sanitation funds.
3. Interfund Balances and Transfers
Interfund balances for the year ended June 30, 2021, consisted of the following:
Interfund balances at June 30, 2021, include due to/from other funds, which represent amounts for negative
cash balance funding. The $174,380 advance to the Nonmajor Enterprise Funds is expected to be repaid
within the next year.
Interfund balances at June 30, 2021, include advances to/from other funds, which represent amounts for
construction loans and a revenue bond redemption loan. $50,930 of the $66,731 advance to the Other Shared
Revenue and Grants Fund is not expected to be repaid within the next year. $3,000,266 of the $3,186,669
advance to the Other Construction Fund is not expected to be repaid within the next year. $762,064 of the
$1,037,525 advance to the Nonmajor Enterprise Funds is not expected to be repaid within the next year.
Due from
General
Due to:
Nonmajor Enterprise 174,380$
Debt
Service Sanitation Total
Advances to:
Other Shared Revenue
and Grants 66,731$ -$ 66,731$
Other Construction - 3,186,669 3,186,669
Nonmajor Enterprise - 1,037,525 1,037,525
Total 66,731$ 4,224,194$ 4,290,925$
Advances from
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Interfund transfers for the year ended June 30, 2021, 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 $29,774,091 are less than total
transfers of $30,148,888 because of the treatment of transfers of capital assets from the governmental
activities capital assets.
Capital Projects
Bridge, Street
Other Capital Projects and Traffic
Shared Revenue Employee Other Control Debt Nonmajor
General and Grants Benefits Construction Construction Service Governmental
Transfer to:
General -$ 86,622$ 12,340,630$ -$ -$ -$ 88,916$
Other Shared Revenue
and Grants 1,000,000 - 622,374 - - - -
Debt Service 15,484 - - - - - 1,010,208
Capital Projects
Other Construction 1,280,459 186,588 - - - - 150,507
Capital Projects
Bridge, Street and
Traffic Control Construction 398,084 2,447,432 - - - - -
Nonmajor Governmental 109,843 320,450 - - - - -
Transit 4,076,795 - - - - - -
Wastewater Treatment 3,597 - - - 470,687 - -
Water 3,121 - - - 903,368 - -
Sanitation 10,539 - - - - 620,000 -
Stormwater 1,986 261,816 - - 744,711 - -
Nonmajor Enterprise 100,000 - - - - - -
Internal Service 141,427 134,699 - 21,537 40,449 - -
Total Transfer to 7,141,335$ 3,437,607$ 12,963,004$ 21,537$ 2,159,215$ 620,000$ 1,249,631$
Transfer from
52
During the year, construction in progress related to construction for the Myrtle and Riverside Dr
Intersection with values of $131,615 and $157,669 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 Stormwater did report
capital contributions for the capital resources received.
During the year, two capital assets related to public works with values of $62,750 and $22,763 were
transferred from governmental activities capital asset to Equipment. No amounts were reported in the
governmental funds, as the amounts did not involve the transfer of financial resources. However,
Equipment did report capital contributions for the capital resources received.
Wastewater Housing Nonmajor Internal Total
Treatment Water Sanitation Stormwater Authority Enterprise Service Transfer from
-$ -$ -$ -$ 50,720$ -$ -$ 12,566,888$
- - - - - - - 1,622,374
- - - - - - - 1,025,692
100,000 - - - - - 10,978 1,728,532
- - 1,000,000 3,419 - - - 3,848,935
- - - - - - - 430,293
- - - - - - 100,000 4,176,795
- - - - - - - 474,284
- - - - - - - 906,489
- - - - - - - 630,539
- 7,216 - - - - - 1,015,729
- - - - - - - 100,000
- - 893,181 - - 16,248 - 1,247,541
100,000$ 7,216$ 1,893,181$ 3,419$ 50,720$ 16,248$ 110,978$ 29,774,091
Transfers from governmental activities capital assets to enterprise funds 289,284
Transfers from governmental activities capital assets to an internal service fund 85,513
30,148,888$
Transfer from
53
4. Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:
Beginning
July 1, 2020
Acquisitions
and
Transfers
Disposals
and
Transfers
Balance
June 30, 2021
Governmental activities:
Capital assets, not being depreciated:
Land 31,159,095$ 1,662,010$ -$ 32,821,105$
Construction in progress 10,000,526 3,352,607 8,120,285 5,232,848
Total capital assets, not being depreciated 41,159,621 5,014,617 8,120,285 38,053,953
Capital assets, being depreciated:
Buildings 66,943,523 1,284,234 93,782 68,133,975
Improvements other than buildings 7,849,511 207,899 30,694 8,026,716
Machinery and equipment 59,689,068 7,963,065 4,964,130 62,688,003
Infrastructure 214,745,245 9,207,724 - 223,952,969
Total capital assets being depreciated 349,227,347 18,662,922 5,088,606 362,801,663
Less accumulated depreciation for:
Buildings 29,476,077 1,704,734 76,604 31,104,207
Improvements other than buildings 4,281,517 272,060 6,808 4,546,769
Machinery and equipment 28,631,978 4,247,749 4,866,621 28,013,106
Infrastructure 54,120,348 4,455,479 - 58,575,827
Total accumulated depreciation 116,509,920 10,680,022 4,950,033 122,239,909
Total capital assets, being depreciated, net 232,717,427 7,982,900 138,573 240,561,754
Governmental activities capital assets, net 273,877,048$ 12,997,517$ 8,258,858$ 278,615,707$
Business-type activities:
Capital assets, not being depreciated:
Land 30,317,185$ -$ -$ 30,317,185$
Construction in progress 4,107,478 2,129,834 3,162,612 3,074,700
Total capital assets, not being depreciated 34,424,663 2,129,834 3,162,612 33,391,885
Capital assets, being depreciated:
Buildings 134,120,224 2,089,182 - 136,209,406
Improvements other than buildings 11,321,421 540,545 72,331 11,789,635
Machinery and equipment 43,347,727 266,659 4,183,283 39,431,103
Infrastructure 334,375,406 8,197,939 645,660 341,927,685
Total capital assets being depreciated 523,164,778 11,094,325 4,901,274 529,357,829
Less accumulated depreciation for:
Buildings 71,040,572 3,553,462 - 74,594,034
Improvements other than buildings 7,687,071 410,689 62,897 8,034,863
Machinery and equipment 27,046,558 1,795,260 4,194,863 24,646,955
Infrastructure 120,365,287 7,377,055 529,193 127,213,149
Total accumulated depreciation 226,139,488 13,136,466 4,786,953 234,489,001
Total capital assets, being depreciated, net 297,025,290 (2,042,141) 114,321 294,868,828
Business-type activities capital assets, net 331,449,953$ 87,693$ 3,276,933$ 328,260,713$
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5. Long Term Debt
Changes in Debt for Bonds
Bond debt activity for the year ended June 30, 2021, was as follows:
Depreciation expense was charged to functions as follows:
Governmental activities:
Public safety 1,563,465$
Public works 5,464,962
Culture and recreation 3,199,646
Community and economic development 51,878
General government 399,727
Total depreciation expense - governmental activities 10,679,678$
Business-type activities:
Transit 1,038,403$
Wastewater treatment 4,756,785
Water 2,608,978
Sanitation 832,719
Stormwater 1,385,449
Housing authority 250,803
Nonmajor enterprise 2,263,329
Total depreciation expense - business-type activities 13,136,466$
Due Within
July 1, 2020 Issues Retirements June 30, 2021 One Year
Governmental activities:
General obligation bonds 53,370,000$ 11,325,000$ 10,760,000$ 53,935,000$ 10,255,000$
Plus: Unamortized
Premium 1,637,945 1,463,546 350,998 2,750,493 318,034
Total general obligation bonds 55,007,945 12,788,546 11,110,998 56,685,493 10,573,034
Revenue bonds 14,790,000 - 1,985,000 12,805,000 965,000
Less: Unamortized
Discounts 25,488 - 2,124 23,364 2,124
Total revenue bonds 14,764,512 - 1,982,876 12,781,636 962,876
69,772,457$ 12,788,546$ 13,093,874$ 69,467,129$ 11,535,910$
Business-type activities:
Revenue bonds 16,065,000$ -$ 4,250,000$ 11,815,000$ 4,350,000$
Plus: Unamortized
Premium 721,358 - 294,352 427,006 246,801
Total revenue bonds 16,786,358$ -$ 4,544,352$ 12,242,006$ 4,596,801$
55
General Obligation Bonds
Various issues of general obligation bonds totaling $53,935,000 are outstanding as of June 30, 2021. The
bonds have interest rates ranging from 1.00% to 5.00% and mature in varying annual amounts ranging from
$805,000 to $1,800,000 per issue, with the final maturities due in the year ending June 30, 2031. Interest
and principal payments on all general obligation bonds, except tax abated portions recorded in the enterprise
funds, are accounted for through the Debt Service Fund.
Annual debt service requirements to maturity for general obligation bonds are as follows:
Revenue Bonds
As of June 30, 2021, the following unmatured revenue bond issues are outstanding:
Wastewater Taxable Urban
Treatment Water Renewal
Original issue amount $ 13,910,000 $ 14,510,000 $ 12,805,000
Interest rates 2.0% to 5.0% 1.5% to 5.0% 1.0% to 3.9%
Annual maturities $ 835,000 to $ 465,000 to $ 725,000 to
$ 2,085,000 $ 1,225,000 $ 965,000
Amount outstanding $ 4,745,000 $ 7,070,000 $ 12,805,000
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30 Principal Interest
2022 10,255,000$ 1,572,113$
2023 8,810,000 1,267,612
2024 7,685,000 997,963
2025 6,630,000 771,962
2026 5,860,000 569,900
2027-2031 14,695,000 828,325
Total 53,935,000$ 6,007,875$
Governmental Activities
Fiscal Year Ending
June 30 Principal Interest Principal Interest
2022 965,000$ 384,150$ 4,350,000$ 298,690$
2023 960,000 355,200 3,840,000 149,270
2024 955,000 326,400 1,745,000 55,825
2025 950,000 297,750 1,325,000 26,081
2026 950,000 269,250 555,000 6,244
2027-2031 3,820,000 972,450 -
2032-2036 4,205,000 385,650 - -
Total 12,805,000$ 2,990,850$ 11,815,000$ 536,110$
Governmental Activities Business-type Activities
56
The revenue bond ordinances required that wastewater treatment, water revenues, and urban renewal tax
revenues be set aside into separate and special accounts as they are received. The use and the amounts to
be included in the accounts are as follows:
Account Amount
(a) Revenue Bond and Interest Amount sufficient to pay current bond and interest maturities.
Sinking Reserve
(b) Revenue Debt Service 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
issues.
(c) Improvement Reserve $20,000 per month until the reserve balance equals or exceeds
$2,000,000 for Wastewater Revenue bonds and $5,000 per month
until the reserve balance equals or exceeds $450,000 for Water
Revenue bonds, with no further deposits once the minimum
balance is reached. If the reserve falls below the required
minimum, monthly transfers in the aforementioned amounts will
resume.
In fiscal year ended June 30, 2021, the Wastewater Treatment Fund had net revenue of $4,575,000 and the
amount of principal and interest due was $2,877,000. In fiscal year ended June 30, 2021, the Water Fund
had net revenues of $2,577,000 and the amount of principal and interest due was $1,823,000.
57
Summary of Bond Issues
General obligation and revenue bonds payable at June 30, 2021, are comprised of the following issues:
(1) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General
Obligation Bonds.
(2) This bond issue refunded the October 2008 Wastewater Revenue Bond.
(3) This bond issue refunded the May 2009 Wastewater Revenue Bonds.
(4) This bond issue refunded the October 2002 Water Revenue Bonds.
(5) This bond issue refunded the October 2008 Water Revenue Bonds.
(6) This bond issued refunded the May 2009 Water Revenue Bonds.
Date of Amount Interest Fina l Outstanding
Issue Issued Rates Maturity June 30, 2021
General Obligation Bonds:
Multi-Purpose June 2012 9,070,000 2.0 - 2.25 6/22 1,005,000
Multi-Purpose July 2013 7,230,000 1.0 - 2.0 6/23 1,725,000
Refunded Multi-Purpose (1) June 2014 11,980,000 2.0 - 3.0 6/24 3,000,000
Multi-Purpose June 2015 7,785,000 2.0 - 2.25 6/25 3,365,000
Multi-Purpose June 2016 8,795,000 2.0 - 3.0 6/26 4,945,000
Multi-Purpose June 2017 9,765,000 2.0 - 2.5 6/27 6,100,000
Multi-Purpose June 2018 8,895,000 1.8 - 2.65 6/28 6,420,000
Multi-Purpose June 2019 12,535,000 2.0 - 2.25 6/29 7,505,000
Multi-Purpose June 2020 12,145,000 2.0 - 5.0 6/30 8,545,000
Multi-Purpose June 2021 11,325,000 2.0 - 5.0 6/31 11,325,000
Total General Obligation Bonds 53,935,000$
Date of Amount Interest Final Outstanding
Issue Issued Rates Maturity June 30, 2021
Revenue Bonds:
Refunded Wastewater
Treatment Bonds (2)June 2016 9,360,000 3.0 - 4.0 7/21 1,825,000
Refunded Wastewater
Treatment Bonds (3)June 2017 4,550,000 2.0 - 5.0 7/22 2,920,000
Refunded Water Bonds (4)June 2012 4,950,000 1.5 - 2.1 7/22 1,070,000
Refunded Water Bonds (5)June 2016 3,650,000 1.5 - 5.0 7/24 2,000,000
Refunded Water Bonds (6)June 2017 5,910,000 2.0 - 2.25 7/25 4,000,000
Taxable Urban Renewal Sept. 2016 12,805,000 3.0 6/36 12,805,000
Total Revenue Bonds 24,620,000$
78,555,000$
58
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 deemed to be in the public interest. The
bonds are collateralized by the property financed and are payable solely from payments received on the
underlying mortgage loans. All payments on the bonds are made by the private sector entities directly to a
bond trustee, who is a third party financial institution, and in turn, disburses the payment to the respective
bond holders. Neither the City, the State, nor any political subdivision thereof is obligated in any manner
for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
As of June 30, 2021, there were three series of Industrial Development Revenue Bonds outstanding, with
an aggregate principal amount payable of $26,347,719.
Debt Legal Compliance
Legal Debt Margin:
As of June 30, 2021, the general obligation debt issued by the City did not exceed its legal debt limit
computed as follows (amounts expressed in thousands):
Assessed valuation:
Real property $ 6,739,315
Utilities 118,583
Total valuation $ 6,857,898
Debt limit, 5% of total assessed valuation $ 342,895
Debt applicable to debt limit:
General obligation bonds 53,935
Urban renewal revenue bonds 12,805
Notes payable (Note 7) 211
Other legal indebtedness (TIF rebates)(Note 10) 36,944
Total net debt applicable to limit 103,895
Legal debt margin $ 239,000
6.Pension and Retirement Systems
The City contributes 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 governed 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-time employees
must participate in either MFPRSI or IPERS. As of June 30, 2021, the City had the following balances
related to its pension accounts:
For the governmental activities, net pension liability is generally liquidated by the General Fund,
Community Development Block Grant Fund and Other Shared Revenue and Grants Fund
IPERS MFPRSI Total
Net Pension Liability 27,731,863$ 28,881,737$ 56,613,600$
Deferred Inflows 950,405 622,414 1,572,819
Deferred Outflows 6,111,076 8,789,893 14,900,969
Pension Expense 4,199,046 5,238,342 9,437,388
59
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 #201, West Des Moines, Iowa
50266 or at www.mfprsi.org.
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 benefits are granted to members with 22 years of service, while partial benefits are 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 of service 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 benefits are available to members who perform more than 22 years
of service (2 percent for each additional year of service, up to a maximum of 8 years). Survivor benefits
are available to the beneficiary of a retired member according to the provisions of the benefit option chosen
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 member 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 the member’s actual date 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 percent 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 greater 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 benefits are similar to disability benefits. Benefits for accidental death are 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 of the 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 of the previous year’s earnable compensation of the member or equal to the
amount of the member’s total contributions plus interest.
60
Benefits are increased annually in accordance with Chapter 411.6 of the Code of Iowa which states a
standard formula for the increases.
The surviving spouse or dependents of an active member who dies due 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 rate was 9.40% of earnable compensation for the year ended June 30, 2021.
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 entry age
normal method as adopted by the Board of Trustees 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 1 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 17.00% of earnable
compensation. The contribution rate was 25.31% for the year ended June 30, 2021
The City’s contributions to MFPRSI for the year ended June 30, 2021 was $2,902,637.
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 Plans,
(GASB 67).
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2021.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2021, the City reported a liability of $28,881,737 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2020, 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, 2020, the City’s proportion
was 3.621079% which was a decrease of 0.063801% from its proportions measured as of June 30, 2019.
61
For the year ended June 30, 2021, the City recognized pension expense of $5,238,342. At June 30, 2021,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
$2,902,637 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Actuarial Assumptions
The total pension liability in the June 30, 2020, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Total 8,789,893$ 622,414$
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
City contributions and proportionate share of
contributions
City contributions subsequent to the measurement
date 2,902,637 -
4,248,846
128,886
-
431,069
Change of assumptions
Deferred Outflows of
Resources
794,090$
715,434
Differences between expected and actual
experience
Deferred Inflows of
Resources
156,887$
34,458
Year Ended
June 30, 2022
June 30, 2023
J une 30, 2024
June 30, 2025
June 30, 2026
1,656,381
985,099
(944)
Total
5,264,842$
1,475,701
1,148,605$
Rate of inflation 3.00 percent per annum
Salary increases 3.75 to 15.11 percent, including inflation
Investment rate of return 7.50 percent, net of pension plan investment
expense , including inflation
62
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2007 to June 30, 2017.
Postretirement mortality rates were 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
Scale 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 geometric real
rates of return for each major asset class are summarized in the following table:
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 City’s Proportionate Share of the Net Pension Liability to Changes 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 net pension liability would be if
it were calculated using a discount rate that is 1% lower (6.5%) or 1% higher (8.5%) than the current rate.
Asset Class
Core Plus Fixed Income 4.0 %
Emerging Markets 7.9
Large Cap 7.49
Small Cap 8.1
Global infrastructure 7.5
International Large Cap 7.2
Private Credit 6.4
Private Equity 10.8
Private Non-Core Real Estate 11.5
Private Core Real Estate 7.2
Long-Term Expected
Real Rate of Return
1% Decrease
(6.5%)
Discount Rate
(7.5%)
1% Increase
(8.5%)
City's proportionate share of
the net pension liability:44,298,964$ 28,881,737$ 16,111,373$
63
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
MFPRSI financial report which is available on MFPRSI’s website at www.mfprsi.org.
Payables to the Pension Plan
At June 30, 2021, there were no amounts due to MFPRSI.
Iowa Public Employees Retirement System (IPERS)
Plan Description
IPERS membership is mandatory for employees of the 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
www.ipers.org.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B 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
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 (based 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 1, 2012. 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 1, 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 benefits 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-sum 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.
64
Contributions
Contribution rates are established 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 1 percentage point. IPERS Contribution Rate Funding Policy requires
that the actuarial contribution rate 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 rate 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 2021, pursuant to the required rate, Regular members contributed 6.29% of pay and the City
contributed 9.44% for a total rate of 15.73%.
The City’s total contributions to IPERS for the year ended June 30, 2021 were $3,025,270.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2021, the City reported a liability of $27,731,863 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2020, 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 IPERS participating employers. At June 30, 2020, the City’s proportion
was 0.3947745% which was a decrease of 0.010614% from its proportions measured as of June 30, 2019.
For the year ended June 30, 2021, the City recognized pension expense of $4,199,046. At June 30, 2021,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Total 950,405$
Change of assumptions 1,423,467 -
Net difference between projected and actual
earnings on pension plan investments 1,558,971 -
Changes in proportion and differences between
City contributions and proportionate share of
contributions 72,732
City contributions subsequent to the measurement
date 3,025,270
6,111,076$
293,089
-
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Differences between expected and actual
experience 30,636$ 657,316$
65
$3,025,270 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Actuarial Assumptions
The total pension liability in the June 30, 2020, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of economic
assumption study dated March 24, 2017 and a demographic assumption study dated June 28, 2018.
Mortality rates were based on the RP-2014 Employee and Healthy Annuitant Tables with MP-2017
generational adjustments.
Year Ended
June 30, 2022
June 30, 2023
June 30, 2024
June 30, 2025
June 30, 2026 (36,389)
Total
487,645
842,550
314,139$
527,456
2,135,401$
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 group.
7.00% compounded annually, net of pension plan investment
(effective June 30, 2017)expense, including inflation
3.25% per annum based on 2.60% inflation and 0.65%
(effective June 30, 2017)real wage inflation
Wage growth
Investment rate of return
66
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 target allocation and best estimates
of arithmetic real rates of return for each major asset class are summarized in the following table:
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 assumed 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 projected future benefit payments to current active and 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 City’s Proportionate Share of the Net Pension Liability to Changes 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 1% lower (6.0%) or 1% higher (8.0%) than the current rate.
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
IPERS financial report which is available on IPERS’ website at www.ipers.org.
Payables to the Pension Plan
At June 30, 2021, there were no amounts due to IPERS.
Asset Class
Core Plus Fixed Income 28.0 %(0.29) %
Domestic Equity 22.0 4.43
International Equity 17.5 5.15
Private Equity 11.0 6.54
Private Real Assets 7.5 4.48
Global Smart Beta Equity 6.0 4.87
Public Credit 4.0 2.29
Private Credit 3.0 3.11
Cash 1.0 (0.78)
Total 100.0 %
Long-Term Expected
Real Rate of ReturnTarget Allocation
1% Decrease
(6.0%)
Discount Rate
(7.0%)
1% Increase
(8.0%)
City's proportionate share of
the net pension liability:46,240,541$ 27,731,863$ 12,212,619$
67
7. Other Long-term Liabilities
A note payable was issued to Greater Iowa City Housing Fellowship for the purchase of an 11 unit
apartment building for low income and disabled housing in the Peninsula Neighborhood. The terms of the
loan are 1%, interest only payments for twenty years with a final balloon payment of $210,784 due on
August 1, 2025.
For the governmental activities, employee vested benefits are generally liquidated by the General Fund,
Community Development Block Grant Fund and Other Shared Revenue and Grants Fund.
In August 1993, the GASB issued Statement No. 18, Accounting for Municipal Solid Waste Landfill
Closure and Post-closure Care Costs (the Statement). Under these rules, in addition to operating expenses
related to current activities of the landfill, an expense provision and related liability are being recognized
based on the future closure and post-closure care costs that will be incurred near or after the date the landfill
no longer accepts waste. The recognition of these landfill closure and post-closure care costs is based on
the amount of the landfill used during the year.
Changes in Long-Term Liabilities - Notes Payable
Note Payable activity for the year ended June 30, 2021, was as follows:
Due Within
July 1, 2020 Issues Retirements June 30, 2021 One Year
Governmental activities: $ 210,784 -$ -$ 210,784$ -$
Changes in Long-Term Liabilities - Employee Vested Benefits
Employee Vested Benefits activity for the year ended June 30, 2021, was as follows:
Due Within
July 1, 2020 Issues Retirements June 30, 2021 One Year
Governmental activities: $ 2,730,646 1,544,065$ 1,524,382$ 2,750,329$ 1,545,831$
Business-type activities: $ 861,579 521,949$ 496,373$ 887,155$ 518,278$
Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs
Landfill Closure Post-closure care activity for the year ended June 30, 2021, was as follows:
Due Within
July 1, 2020 Issues Retirements June 30, 2021 One Year
Business-type activities: $ 10,660,278 $ 585,912 -$ $ 11,246,190 -$
68
The estimated liability for landfill closure and post-closure care costs as of June 30, 2021, is $11,246,190,
which is based on 55.3% usage (filled) of the landfill and is included in accrued liabilities within the
Sanitation Fund. It is estimated that an additional amount of approximately $9,090,501 will be recognized
as closure and post-closure care expenses between the date of the balance sheet and the date the landfill is
expected to be filled to capacity by the year ended June 30, 2039. The estimated total current cost of the
landfill closure and post-closure care costs at June 30, 2021, was determined by a licensed professional
engineer and approximated at $20,336,691. 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,
2021. 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, 2021, the Sanitation Fund had $14,669,736 in related
equity in pooled cash and investments, at fair value designated for satisfaction 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 of post-closure care costs, anticipated future inflation costs
and additional costs that might arise from changes in post-closure requirements (due to changes in
technology or more rigorous environmental regulations, for example) may need to be covered by charges
to future landfill users as well as City taxpayers.
Changes in Long-Term Liabilities – Other Postemployment Benefits (OPEB)
Plan Description: 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 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 full-time employees who retire or terminate/resign and their eligible dependents are offered the
following post-employment benefit options:
Health insurance and dental insurance – The option of continuing with the City’s health insurance plan
at the individual’s expense. These benefits cease upon Medicare eligibility.
Life insurance – The option of converting the employee’s City-paid policy to an individual policy at
the individual’s expense with the City’s life insurance carrier.
Long-term disability – For employees who terminate/resign and have been on the plan for a minimum
of one year, the option of converting the employee’s City-paid group policy to a personal policy at the
individual’s expense with the City’s long-term disability insurance carrier.
The above options, while at the individual’s own expense, are included within the City’s overall insurance
package, which results in an implicit rate subsidy and an OPEB liability.
Retired participants must be age 55 or older at retirement. At June 30, 2021, the following employees were
covered by the benefit terms:
Total OPEB Liability: The City’s total OPEB liability of $9,697,868 was measured as of June 30, 2021
and was determined by an actuarial valuation as of that date.
Inactive employees or beneficiaries currently receiving benefit payments 66
Active employees 564
Total 630
69
Actuarial Assumptions: The total OPEB liability in the June 30, 2021 actuarial valuation was determined
using the following actuarial assumptions and the entry age normal actuarial cost method, applied to all
periods included in the measurement.
Discount Rate: The discount rate used to measure the total OPEB liability was 2.19% which reflects the
index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or
higher as of the measurement date.
Mortality rates for general participants are from the SOA Pub-2010 General Headcount Weighted Mortality
Table fully generational using Scale MP-2019. Mortality rates for public safety participants are from the
SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using Scale MP-2019.
Annual retirement probabilities are based on varying rates by age and turnover probabilities mirror those
used by IPERS and MFPRSI.
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial
experience study with dates corresponding to those listed above.
Changes of assumptions reflect a change in the discount rate from 2.66% in fiscal year 2020 to 2.19% in
fiscal year 2021.
Rate of inflation 2.60% per annum
(effective June 30, 2021)
Rates of salary increases 3.25% per annum based on 2.60% inflation and 0.65%
(effective June 30, 2021)real wage inflation
Discount rate 2.19%, compounded annually, including inflation
(effective June 30, 2021)
Healthcare cost trend rate 8.00% initial rate decreasing by .5% annually to an ultimate
(effective June 30, 2021)rate of 4.50%
Total OPEB
Liability
Total OPEB liability beginning of year 8,627,420$
Changes for the year:
Service Cost 733,608
Interest 240,186
Difference between expected and actual
experience 459,049
Changes in assumptions 304,947
Benefit payments (667,342)
Net changes 1,070,448
Total OPEB liability end of year 9,697,868$
70
Sensitivity of the City’s Total OPEB Liability to Changes 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 rate that is 1% lower (1.19%) or 1% higher (2.19%) than the current discount
rate.
Sensitivity of the City’s Total OPEB Liability to Changes 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 1% lower (6.50%) or 1% higher (8.50%) than
the current healthcare cost trend rate.
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB: For the year ended June 30, 2021, the City recognized OPEB expense of $1,192,863. At June 30,
2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following resources:
The amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized as OPEB expense as follows:
For the governmental activities, OPEB liability is generally liquidated by the General Fund, Community
Development Block Grant Fund and Other Shared Revenue and Grants Fund
1% Decrease
(1.19%)
Discount Rate
(2.19%)
1% Increase
(3.19%)
Total OPEB liability 10,365,126$ 9,697,868$ 9,056,498$
1% Decrease
(6.5%)
Healthcare Cost
Trend Rate (7.5%)
1% Increase
(8.50%)
Total OPEB liability 8,517,061$ 9,697,868$ 11,102,748$
Total
Differences between expected and actual
experience 1,225,746$ (612,245)$
Change of assumptions 1,021,797 (66,086)
2,247,543$ (678,331)$
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Year Ended
June 30, 2022
June 30, 2023
J une 30, 2024
June 30, 2025
June 30, 2026
Thereafter
219,069
1,569,212$
219,069$
219,069
219,069
219,069
473,867
Total
71
8. Fund Equity
Fund balances for the governmental funds are reported in classifications 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 or 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 fund 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
resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned
resources first to defer the use of these other classified funds.
Components of Fund Balance
Bridge,
Other Street and
Shared Traffic Other
Revenue and Employee Other Control Debt Governmental
Sound to nearest $General Grants Benefits Construction Construction Service Funds Total
Nonspendable:
Perpetual Care Principal 69,000$ -$ -$ -$ -$ -$ -$ 69,000$
Inventory - 218,075 - - - - - 218,075
Property Held for Resale 399,605 - - - - - - 399,605
Total Nonspendable 468,605 218,075 - - - - - 686,680
Restricted for:
Public Safety 420,274 - - - - - - 420,274
Debt Service - - - - - 7,550,454 - 7,550,454
GO Bond Projects - - - 8,177,972 18,291,352 - - 26,469,324
State Funding - 4,405,316 - - - - - 4,405,316
Grant Agreement - - - - - - 3,299,084 3,299,084
Affordable Housing - 3,598,374 - - - - - 3,598,374
Economic Development - - - - - - 1,448,938 1,448,938
Notes Receivable 982,233 - - - - - - 982,233
Public Safety Employee
Benefits - - 3,630,989 - - - - 3,630,989
Other Restricted 52,677 1,090,331 - - - - 438,463 1,581,471
Total Restricted 1,455,184 9,094,021 3,630,989 8,177,972 18,291,352 7,550,454 5,186,485 53,386,457
Assigned to:
Library Programs 1,308,282 - - - - - - 1,308,282
Replacement and Acquisition
Reserves 8,518,480 - - - - - - 8,518,480
Other Assigned 55,817 - - - - - - 55,817
Total Assigned 9,882,579 - - - - - - 9,882,579
Unassigned:40,413,826 - - - - - (27,414) 40,386,412
Total Fund Balances 52,220,194$ 9,312,096$ 3,630,989$ 8,177,972$ 18,291,352$ 7,550,454$ 5,159,071$ 104,342,128$
72
9. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
workplace accidents, errors and omissions; and natural disasters. During fiscal year 1988 the City
established the Loss Reserve Fund, an internal service fund, to account for and finance its uninsured risks
of loss. During the year ended June 30, 2021 the City purchased property, liability, and workers’
compensation insurance under the program that provides for a $100,000 self-insured retention per
occurrence on property losses, a $500,000 self-insured retention per occurrence on liability, and a zero self-
insured retention on workers’ compensation losses for all employees except Fire Department employees.
Workers compensation losses for Fire Department employees are fully self-funded. 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.
The Housing Authority Fund is insured under a separate policy with the Assisted Housing Risk
Management Association. The remaining funds participate in the Loss Reserve Fund. The funds make
payments to the Loss Reserve Fund based on actuarial estimates of the amounts needed to pay prior- and
current-year claims and to establish a reserve for catastrophic losses. The Fund’s accrued liabilities balance
includes a claims liability at June 30, 2021 based on the requirements of GASB Statement No. 10, as
amended, which requires that a liability for claims be reported if information prior to the issuance of the
financial statements indicates that it is probable that a liability has been incurred at the date of the financial
statements and the amount of the loss can be reasonably estimated. Changes in the Loss Reserve Fund’s
claims liability amount for property, liability, and workers’ compensation for the years ended June 30, 2021
and 2020 are as follows:
Current-Year
Beginning-of- Claims and Balance at
Fiscal-Year Changes in Claim Fiscal
Liability Estimates Payments Year-End
2019 - 2020 $ 2,707,000 $ 761,000 $ 907,000 $ 2,561,000
2020 - 2021 2,561,000 2,562,000 1,850,000 3,273,000
Also, the City is partially self-insured, through stop-loss insurance, for employee health care coverage,
which is available to all of its permanent employees. This insurance provides stop-loss coverage for claims
in excess of $125,000 per employee with an aggregate stop-loss of $12,281,650. The operating funds are
charged premiums by the Loss Reserve Fund. The City reimburses a health insurance provider for actual
medical costs incurred, plus a claims processing\administrative fee. Changes in the Loss Reserve Fund’s
claims liability amount for health care coverage for the years ended June 30, 2021 and 2020 are as follows:
Current-Year
Beginning-of- Claims and Balance at
Fiscal-Year Changes in Claim Fiscal
Liability Estimates Payments Year-End
2019 - 2020 $ 850,000 $ 9,167,000 $ 8,948,000 $ 1,069,000
2020 - 2021 1,069,000 9,900,000 10,511,000 458,000
73
10. Commitments and Contingencies
Contractual Commitments
Developer Commitments
In order to encourage development within designated TIF districts, the City Council has approved developer
grants to 8 different projects. The grants are to be paid only after certain conditions have been met by each
project developer, and are to be paid over many years in the form of a rebate of a predetermined percentage
of future property taxes generated by the property. Currently, it is estimated that outstanding commitments
totaling $36,943,555 exist, of which $2,161,853 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 $933,304. No liability is recognized due to the fact that the agreements are conditional and
the payments are to be funded by future property taxes receivable on the project.
11. Contingent Liabilities
Litigation
The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged
improper actions by City employees, with such lawsuits typically involving claims of improper police
action, unlawful taking of property by zoning, negligence, appeals of condemnations, and discrimination.
Total damages claimed are substantial; however, it has been the City’s experience that such actions are
settled for amounts substantially less than claimed amounts. The City’s management estimates that the
potential claims against the City, not covered by various insurance policies, would not materially affect the
financial condition of the City. The City has the authority to levy additional taxes (outside the regular limit)
to cover uninsured judgments against the City.
The total outstanding contractual commitments as of June 30, 2021 are as follows:
Project Amount
Bridge, street and traffic Paving and Bridge Construction,
control construction Engineering Design and Consulting 12,192,799$
Other construction Public Works & Culture and Recreation Construction 1,209,455
Parking Parking Facility Restoration Repair 129,667
Wastewater Sewer Construction & Influent Rake Replacement 1,727,287
Water Water Construction & Peninsula Well Field Power
Redundancy Project 50,661
Transit Transit Bus Sign Replacements/Transit Amenities 7,671
Airport Runway Obstruction Mitigation & Runway Relocation 340,700
Stormwater Stormwater System Improvements & Storm Sewer 114,002
Replacements
15,772,242$
Fund
74
12. 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 15A and 403 of the Code of Iowa. For these types of projects, the
City enters into agreements with developers which require the City, after 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 grant 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, 2021, $372,143 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, 2021 under
agreements entered into by any entities.
13. COVID-19
In March 2020, the COVID-19 outbreak was declared a global pandemic. The disruption to businesses
across a range of industries in the United States continue to evolve. The full impact to local, regional and
national economies, including that of the City, remains uncertain.
To date, the outbreak has not created a material disruption to the operations of the City. However, the
extent of the financial impact of COVID-19 will depend on future developments, including the spread of
the virus, duration and timing of the economic recovery. Due to these uncertainties, management cannot
reasonably estimate the potential impact to the City.
14. New Governmental Accounting Standards Board (GASB) Standards
The Governmental Accounting Standards Board (GASB) has issued eight statements not yet implemented
by the City. The statements, which might impact the City’s financial statements, are as follows:
Statement No. 87, Leases, will be effective for fiscal year ending June 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 of a Construction Period, will be
effective for fiscal year ending June 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.
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 disclosures.
75
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 of certain 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
improve 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 arrangements (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. 84, and a supersession of GASB Statement No. 32, will be effective for fiscal year ending June
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 performs 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)
Section 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.
76
77
Governmental
Fund Types Enterprise Fund
Actual Budgetary Types Actual Total Actual
Basis Budgetary Basis Budgetary Basis
Revenues:
Property taxes 65,796$ -$ 65,796$
Delinquent property taxes 985 - 985
Tax increment financing taxes 2,638 - 2,638
Other city taxes 2,639 - 2,639
Special assessments - - -
Licenses and permits 2,541 11 2,552
Intergovernmental 32,212 14,440 46,652
Charges for services 5,773 40,315 46,088
Use of money and property 823 1,246 2,069
Miscellaneous 2,032 1,248 3,280
Total revenues 115,439 57,260 172,699
Expenditures/Expenses:
Public safety 26,700 - 26,700
Public works 10,743 - 10,743
Health and social services 571 - 571
Culture and recreation 13,606 - 13,606
Community and economic development 8,240 - 8,240
General government 9,585 - 9,585
Debt service 14,652 - 14,652
Capital outlay 18,334 - 18,334
Business-type - 56,758 56,758
Total expenditures/expenses 102,431 56,758 159,189
Excess (deficiency) of revenues over
(under) expenditures/expenses 13,008 502 13,510
Other financing sources and uses, net 9,230 3,609 12,839
Net change in fund balances 22,238 4,111 26,349
Balances, beginning of year 89,084 91,331 180,415
Balances, end of year 111,322$ 95,442$ 206,764$
See Note to Required Supplementary Information.
City of Iowa City, Iowa
Budgetary Comparison Schedule
Budget and Actual - All Governmental Funds and Enterprise Funds
Required Supplementary Information
For the Year Ended June 30, 2021
(dollar amounts expressed in thousands)
Budgetary Basis
78
Final to Actual
Variance -
Positive
Original Final (Negative)
65,849$ 65,849$ (53)$
- - 985
2,593 2,593 45
2,958 2,307 332
1 1 (1)
2,210 1,991 561
35,753 49,706 (3,054)
48,040 44,636 1,452
3,037 2,272 (203)
2,581 2,535 745
163,022 171,890 809
27,852 28,047 1,347
11,754 11,829 1,086
605 605 34
16,432 16,417 2,811
8,902 10,091 1,851
11,454 12,979 3,394
14,520 14,520 (132)
22,705 54,748 36,414
61,279 73,729 16,971
175,503 222,965 63,776
(12,481) (51,075) 64,585
12,773 12,213 626
292 (38,862) 65,211$
137,269 180,442
137,561$ 141,580$
Budgeted Amounts
79
Accrual Modified Accrual
Budget Basis Adjustments Basis
Revenues 115,439$ (14,007)$ 101,432$
Expenditures 102,431 (6,922) 95,509
Net 13,008 (7,085) 5,923
Other financing sources and uses, net 9,230 (2,578) 6,652
Beginning Fund Balances 89,084 2,684 91,768
Ending Fund Balances 111,322$ (6,979)$ 104,343$
Accrual Accrual
Budget Basis Adjustments Basis
Revenues 57,260$ 2,643$ 59,903$
Expenditures 56,758 4,026 60,784
Net 502 (1,383) (881)
Other financing sources and uses, net 3,609 1,625 5,234
Beginning Fund Balances 91,331 298,092 389,423
Ending Fund Balances 95,442$ 298,334$ 393,776$
See Note to Required Supplementary Information.
City of Iowa City, Iowa
Governmental Fund Types
Enterprise Fund Types
Budgetary Comparison Schedule
Budget to GAAP Reconciliation
Required Supplementary Information
For the Year Ended June 30, 2021
(dollar amounts expressed in thousands)
80
City of Iowa City, Iowa
Note to Required Supplementary Information - Budgetary Reporting
For the Year Ended June 30, 2021
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 modified accrual basis. The annual budget may be amended during the year
utilizing similar statutorily prescribed procedures.
Formal and legal budgetary control is based upon nine major classes of expenditures known as functions,
not by fund or fund type. These nine functions are: public safety, public works, health and social services,
culture and recreation, community and economic development, general government, debt service, capital
outlay and business-type. The legal level control is at the aggregated function level, not at the fund or fund
type level.
During the year, budget amendments increased budgeted revenues by $8,868,000 and expenditures by
$47,462,000. The budget amendments were primarily due to changes in the breadth and timing of capital
improvement projects, which the City budgets in full during the initial year of the projects and amends
future year budgets for carryover.
During the year ended June 30, 2021, the city over expended the Debt Service function by $132,000 due to
unanticipated interest expense due to a larger than anticipated premium amount when the general obligation
bonds were issued.
81
82
2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability 3.621079%3.684880%3.706970%3.648635%3.697128%3.704972%3.778137%
City's proportionate share of the net pension liability 28,882$ 24,170$ 22,071$ 21,398$ 23,117$ 17,406$ 13,696$
City's covered payroll 11,503 11,155 10,743 10,347 10,019 9,716 9,648
City's proportionate share of the net pension liability
as a percentage of its covered payroll 251.08%216.67%205.45%206.80%230.73%179.15%141.96%
Plan fiduciary net position as a percentage of the
total pension liability 76.47%79.94%81.07%80.60%78.20%83.04%86.27%
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of
June 30 of the preceding fiscal year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the City will present information for those years for which information is available.
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Municipal Fire and Police Retirement System of Iowa
For the Last Seven Years*
(amounts expressed in thousands)
83
2021 2020 2019 2018
Statutorily required contributions 2,903$ 2,808$ 2,902$ 2,759$
Contributions in relation to the
statutorily required contribution (2,903) (2,808) (2,902) (2,759)
Contribution deficiency (excess)-$ -$ -$ -$
City's covered payroll 11,468$ 11,503$ 11,155$ 10,743$
Contributions as a percentage of
covered payroll 25.31%24.41%26.02%25.68%
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)
84
2017 2016 2015 2014 2013 2012
2,682$ 2,782$ 2,955$ 2,906$ 2,383$ 2,277$
(2,682) (2,782) (2,955) (2,906) (2,383) (2,277)
-$ -$ -$ -$ -$ -$
10,347$ 10,019$ 9,716$ 9,648$ 9,122$ 9,197$
25.92%27.77%30.41%30.12%26.12%24.76%
85
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions:
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 (male 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 (male only rates), with no projection of future mortality improvement.
The 2015 valuation phased in the 1994 Group Annuity Mortality 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 Mortality 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.
City of Iowa City, Iowa
Notes to Required Supplementary Information - Pension Liability
Municipal Fire and Police Retirement System of Iowa
Year ended June 30, 2021
86
2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability 0.3947745%0.4053890%0.4016869%0.3968158%0.3962696%0.4159256%0.4378904%
City's proportionate share of the net pension liability 27,732$ 23,475$ 25,420$ 26,433$ 24,938$ 20,549$ 17,366$
City's covered payroll 31,345 30,852 30,190 29,619 28,448 28,495 28,654
City's proportionate share of the net pension liability
as a percentage of its covered payroll 88.47%76.09%84.20%89.24%87.66%72.11%60.61%
Plan fiduciary net position as a percentage of the
total pension liability 82.90%85.45%83.62%82.21%81.82%85.19%87.61%
* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of
June 30 of the preceding fiscal year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the City will present information for those years for which information is available.
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Iowa Public Employees' Retirement System
For the Last Seven Years*
(amounts expressed in thousands)
87
2021 2020 2019 2018
Statutorily required contributions 3,025$ 2,959$ 2,912$ 2,696$
Contributions in relation to the
statutorily required contribution (3,025) (2,959) (2,912) (2,696)
Contribution deficiency (excess)-$ -$ -$ -$
City's covered payroll 32,047$ 31,345$ 30,852$ 30,190$
Contributions as a percentage of
covered payroll 9.44%9.44%9.44%8.93%
(amounts expressed in thousands)
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Contributions
Iowa Public Employees' Retirement System
For the Last Ten Years
88
2017 2016 2015 2014 2013 2012
2,645$ 2,540$ 2,545$ 2,559$ 2,442$ 2,327$
(2,645) (2,540) (2,545) (2,559) (2,442) (2,327)
-$ -$ -$ -$ -$ -$
29,619$ 28,448$ 28,495$ 28,654$ 28,170$ 28,833$
8.93%8.93%8.93%8.93%8.67%8.07%
89
Changes of benefit terms:
There are no significant changes in benefit terms.
Changes of assumptions:
The 2018 valuation implemented the following refinements as a result of an experience
study dated 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 from 3.00% to 2.60%.
• Decreased the assumed rate of interest on member accounts from 3.75% to 3.5%
per year.
• Decreased the discount rate from 7.50% to 7.00%.
• Decreased the wage growth assumption from 4.00% to 3.25%.
• Decreased the payroll growth assumption from 4.00% 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.
City of Iowa City, Iowa
Notes to Required Supplementary Information - Pension Liability
Iowa Public Employees' Retirement System
Year ended June 30, 2021
90
2021 2020 2019 2018
Service Cost 734$ 633$ 553$ 502$
Interest 240 323 297 245
Difference between expected and actual experience 459 (483) 1,161 (377)
Changes in assumptions 305 (83) 225 982
Benefit payments (667) (641) (948) (174)
Net change in total OPEB liability 1,071 (251) 1,288 1,178
Total OPEB liability beginning of year 8,627 8,878 7,590 6,412
Total OPEB liability end of year 9,698$ 8,627$ 8,878$ 7,590$
City's covered-employee payroll 43,515$ 42,848$ 42,007$ 40,933$
Total OPEB liability as a percentage of
covered-employee payroll 22.29%20.13%21.13%18.54%
Note: GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full
10-year trend is compiled, the City will present information for those years for which information is available.
Note: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GAS Statement No. 75.
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions:
Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The
following are the discount rates used in each period.
Year ended June 30, 2021 2.19%
Year ended June 30, 2020 2.66%
Year ended June 30, 2019 3.51%
Year ended June 30, 2018 3.87%
Mortality table has been updated from SOA RPH-2017 Total Dataset Mortality Table fully generational using
Scale MP-2017 to SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using
Scale MP-2019 for general participants, SOA Pub-2010 Public Safety Headcount Weighted Mortality Table fully
generational using Scale MP-2019 for public safety participants, and SOA Pub-2010 Continuing Survivor
Headcount Weighted Mortality Table fully generational using Scale MP-2019 for surviving spouses.
Termination rates, salary merit increases and retirement rates for IPERS employees have been updated to be
based on the Iowa Public Employees’ Retirement System July 1, 2019 Actuarial Valuation Report. Termination
rates, salary merit increases and retirement rates for MFPRSI employees have been updated to follow the
Municipal Fire and Police Retirement System of Iowa July 1, 2019 Actuarial Valuation Report.
Health care trend rates have been updated to an initial trend rate of 8.0% decreasing by 0.5% annually to an
ultimate rate of 4.5%.
City of Iowa City, Iowa
Required Supplementary Information - Schedule of Changes in the City's Total OPEB Liability, Related Ratios and Notes
For the Last Four Years
(amounts expressed in thousands)
91
92
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.
93
Metropolitan
Community Planning
Development Organization
Economic Block of Johnson
Development Grant County Total
Assets
Equity in pooled cash and investments 1,422$ 30$ 409$ 1,861$
Receivables:
Property tax 515 - - 515
Notes - 3,299 - 3,299
Due from other governments - - 59 59
Total assets 1,937$ 3,329$ 468$ 5,734$
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities
Accounts payable 85$ 1$ 4$ 90$
Accrued liabilities - 4 26 30
Liabilities payable from restricted assets:
Advances from grantors - 25 - 25
Total liabilities 85 30 30 145
Deferred Inflows of Resources
Unavailable revenues:
Succeeding year property taxes 430 - - 430
Grants - - - -
Total deferred inflows of resources 430 - - 430
Fund Balances
Restricted 1,449 3,299 438 5,186
Unassigned (27) - - (27)
Total fund balances 1,422 3,299 438 5,159
Total liabilities, deferred inflows
of resources and fund balances 1,937$ 3,329$ 468$ 5,734$
Special Revenue
City of Iowa City, Iowa
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
(amounts expressed in thousands)
94
Metropolitan
Community Planning
Development Organization
Economic Block of Johnson
Development Grant County Total
Revenues
Property taxes 3,104$ -$ -$ 3,104$
Intergovernmental 69 1,354 384 1,807
Use of money and property 9 32 2 43
Miscellaneous - 43 - 43
Total revenues 3,182 1,429 386 4,997
Expenditures
Current:
Community and economic development 1,490 1,494 761 3,745
Total expenditures 1,490 1,494 761 3,745
Excess (deficiency) of revenues over
(under) expenditures 1,692 (65) (375) 1,252
Other Financing Sources (Uses)
Transfers in 52 - 379 431
Transfers out (1,109) (141) - (1,250)
Total other financing sources
and (uses)(1,057) (141) 379 (819)
Net change in fund balances 635 (206) 4 433
Fund Balances, Beginning 787 3,505 434 4,726
Fund Balances, Ending 1,422$ 3,299$ 438$ 5,159$
Special Revenue
City of Iowa City, Iowa
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
(amounts expressed in thousands)
95
96
Nonmajor Enterprise Funds
Enterprise Funds account for operations and activities of the City that are financed and operated in a manner similar
to a private business enterprise, and where the costs of providing services to the general public on a continuing basis
are expected to be financed or recovered primarily through user charges, or where the City has decided that periodic
determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes. The funds in this category are as follows:
Airport Fund – accounts for the operation and maintenance of the airport facility.
Parking Fund – accounts for the operation and maintenance of the “on” and “off” street public parking facilities.
97
Airport Parking Total
Assets
Current assets:
Equity in pooled cash and investments -$ 3,198$ 3,198$
Receivables:
Accounts and unbilled usage 25 323 348
Interest - 1 1
Due from other governments 414 2 416
Total current assets 439 3,524 3,963
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments 107 8 115
Capital assets:
Land 11,995 3,489 15,484
Buildings 5,458 41,647 47,105
Improvements other than buildings 445 328 773
Machinery and equipment 531 1,622 2,153
Infrastructure 17,451 - 17,451
Accumulated depreciation (12,457) (24,417) (36,874)
Construction in progress 152 - 152
Total noncurrent assets 23,682 22,677 46,359
Total assets 24,121 26,201 50,322
Deferred Outflows of Resources
Pension related deferred outflows 12 184 196
OPEB related deferred outflows 3 55 58
Total deferred outflows of resources 15 239 254
Liabilities
Current liabilities:
Accounts payable 4 92 96
Contracts payable 34 6 40
Accrued liabilities 4 62 66
Employee vested benefits 3 58 61
Due to other funds 174 - 174
Total current liabilities 219 218 437
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits 8 1 9
Advances from other funds - 1,037 1,037
Employee vested benefits 2 42 44
Net pension liability 56 816 872
Other post employment benefits obligation 14 238 252
Total noncurrent liabilities 80 2,134 2,214
Total liabilities 299 2,352 2,651
Deferred Inflows of Resources
Pension related deferred inflows 2 28 30
OPEB related deferred inflows 1 17 18
Total deferred inflows of resources 3 45 48
Net Position
Net investment in capital assets 23,575 22,669 46,244
Restricted for future improvements 100 304 404
Unrestricted 159 1,070 1,229
Total net position 23,834$ 24,043$ 47,877$
City of Iowa City, Iowa
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2021
(amounts expressed in thousands)
98
Airport Parking Total
Operating Revenues:
Charges for services 376$ 3,758$ 4,134$
Miscellaneous - 48 48
Total operating revenues 376 3,806 4,182
Operating Expenses:
Personal services 86 1,902 1,988
Commodities 335 86 421
Services and charges 426 1,417 1,843
847 3,405 4,252
Depreciation 1,006 1,257 2,263
Total operating expenses 1,853 4,662 6,515
Operating loss (1,477) (856) (2,333)
Nonoperating Revenues:
Operating grants 332 - 332
Interest income - 15 15
Total nonoperating revenues 332 15 347
Loss before capital contributions
and transfers (1,145) (841) (1,986)
Capital contributions 267 - 267
Transfers in 100 - 100
Transfers out (16) - (16)
Change in net position (794) (841) (1,635)
Net Position, Beginning 24,628 24,884 49,512
Net Position, Ending 23,834$ 24,043$ 47,877$
Nonmajor Enterprise Funds
and Changes in Fund Net Position
Combining Statement of Revenues, Expenses
City of Iowa City, Iowa
(amounts expressed in thousands)
For the Year Ended June 30, 2021
99
Airport Parking Total
Cash Flows From Operating Activities
Receipts from customers and users 373$ 3,522$ 3,895$
Payments to suppliers (1,179) (1,636) (2,815)
Payments to employees (83) (1,912) (1,995)
Net cash flows used for operating activities (889) (26) (915)
Cash Flows From Noncapital Financing Activities
Operating grants received 843 1 844
Transfers from other funds 100 - 100
Transfers to other funds (16) - (16)
Advances from other funds 174 - 174
Repayment of advances from other funds (138) (137) (275)
Net cash flows from (used for) noncapital financing activities 963 (136) 827
Cash Flows From Capital and Related Financing
Activities
Capital grants received 184 - 184
Acquisition and construction of property and equipment (258) - (258)
Net cash flows used for capital and related financing activities (74) - (74)
Cash Flows From Investing Activities
Interest on investments - 25 25
Net increase (decrease) in cash and cash equivalents - (137) (137)
Cash and Cash Equivalents, Beginning 107 3,343 3,450
Cash and Cash Equivalents, Ending 107$ 3,206$ 3,313$
Reconciliation of operating loss to net cash
flows from (used for) operating activities:
Operating loss (1,477)$ (856)$ (2,333)$
Adjustments to reconcile operating loss to
net cash flows used for operating activities:
Depreciation expense 1,006 1,257 2,263
Changes in:
Receivables:
Accounts and unbilled usage (1) (284) (285)
Due from other governments (2) - (2)
Accounts payable (418) (133) (551)
Accrued liabilities - 5 5
Net pension liability 8 72 80
Deferred outflows of resources (1) (23) (24)
Deferred inflows of resources (6) (91) (97)
Other post employment benefits asset/obligation 2 27 29
Total adjustments 588 830 1,418
Net cash flows used for operating activities (889)$ (26)$ (915)$
Noncash Investing, Capital, and Financing Activities:
Capital grants not yet received 163$ -$ 163$
Operating grants not yet received 249$ 2$ 251$
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended June 30, 2021
(amounts expressed in thousands)
100
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 the operation and replacement of equipment.
101
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
Assets
Current assets:
Equity in pooled cash and investments 18,107$ 809$ 17,034$ 3,772$ 39,722$
Receivables:
Accounts and unbilled usage 11 - 165 - 176
Interest 12 - 18 2 32
Due from other governments 64 - - - 64
Inventories 568 - - - 568
Total current assets 18,762 809 17,217 3,774 40,562
Noncurrent assets:
Capital assets:
Land 685 - - - 685
Buildings 1,298 - - 183 1,481
Improvements other than buildings 50 - - 50
Machinery and equipment 23,377 94 19 1,604 25,094
Infrastructure - - - 3,605 3,605
Accumulated depreciation (12,179) (53) (19) (1,742) (13,993)
Construction in progress 66 - - - 66
Total noncurrent assets 13,297 41 - 3,650 16,988
Total assets 32,059 850 17,217 7,424 57,550
Deferred Outflows of Resources
Pension related deferred outflows 152 5 30 159 346
OPEB related deferred outflows 45 3 3 32 83
Total deferred outflows of resources 197 8 33 191 429
Liabilities
Current liabilities:
Accounts payable 160 10 289 177 636
Accrued liabilities 45 1 3,740 51 3,837
Employee vested benefits 40 - 3 29 72
Due to other governments 7 - - - 7
Total current liabilities 252 11 4,032 257 4,552
Noncurrent liabilities:
Employee vested benefits 30 - 3 24 57
Net pension liability 686 24 136 717 1,563
Other post employment benefits liability 196 14 14 140 364
Total noncurrent liabilities 912 38 153 881 1,984
Total liabilities 1,164 49 4,185 1,138 6,536
Deferred Inflows of Resources
Pension related deferred inflows 23 1 5 24 53
OPEB related deferred inflows 14 1 1 10 26
37 2 6 34 79
Net Position
Net investment in capital assets 13,297 41 - 3,650 16,988
Unrestricted 17,758 766 13,059 2,793 34,376
Total net position 31,055$ 807$ 13,059$ 6,443$ 51,364$
(amounts expressed in thousands)
City of Iowa City, Iowa
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
102
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
Operating Revenues:
Charges for services 7,097$ 195$ 12,454$ 2,892$ 22,638$
Total operating revenues 7,097 195 12,454 2,892 22,638
Operating Expenses:
Personal services 1,100 39 230 1,237 2,606
Commodities 1,556 - 110 775 2,441
Services and charges 575 94 12,087 574 13,330
3,231 133 12,427 2,586 18,377
Depreciation 2,042 14 - 257 2,313
Total operating expenses 5,273 147 12,427 2,843 20,690
Operating income 1,824 48 27 49 1,948
Nonoperating Revenues:
Gain (loss) on disposal of capital assets 309 (7) - 4 306
Operating grants 11 - -- 11
Interest income 52 3 (3) 15 67
Total nonoperating revenues 372 (4) (3) 19 384
Income before transfers 2,196 44 24 68 2,332
Capital contributions 86 - - - 86
Transfers in 1,207 - - 40 1,247
Transfers out (100) (11) - - (111)
Change in net position 3,389 33 24 108 3,554
Net Position, Beginning 27,666 774 13,035 6,335 47,810
Net Position, Ending 31,055$ 807$ 13,059$ 6,443$ 51,364$
(amounts expressed in thousands)
City of Iowa City, Iowa
Combining Statement of Revenues, Expenses
Internal Service Funds
For the Year Ended June 30, 2021
and Changes in Fund Net Position
103
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
Cash Flows From Operating Activities
Receipts from customers and users 7,065$ 195$ 12,432$ 2,892$ 22,584$
Payments to suppliers (2,300) (105) (12,138) (1,196) (15,739)
Payments to employees (1,076) (38) (196) (1,144) (2,454)
Net cash flows from operating activities 3,689 52 98 552 4,391
Cash Flows From Noncapital Financing
Activities
Operating grants received 10 - - - 10
Transfers from other funds 1,207 - - 40 1,247
Transfers to other funds (100) (11) - - (111)
Net cash flows from (used for) noncapital
financing activities 1,117 (11) - 40 1,146
Cash Flows From Capital and Related
Financing Activities
Acquisition and construction of property
and equipment (4,576) (16) - (161) (4,753)
Proceeds from sale of property 309 - - 4 313
Net cash flows used for capital and related
financing activities (4,267) (16) - (157) (4,440)
Cash Flows From Investing Activities
Interest on investments 99 5 147 24 275
Net increase in cash
and cash equivalents 638 30 245 459 1,372
Cash and Cash Equivalents, Beginning 17,469 779 16,789 3,313 38,350
Cash and Cash Equivalents, Ending 18,107$ 809$ 17,034$ 3,772$ 39,722$
Reconciliation of operating income
to net cash flows from operating activities:
Operating income 1,824$ 48$ 27$ 49$ 1,948$
Adjustments to reconcile operating income
to net cash flows from operating activities:
Depreciation expense 2,042 14 - 257 2,313
Changes in:
Receivables:
Accounts and unbilled usage (11) - (22) - (33)
Due from other governments (21) - - - (21)
Inventories (53) - - - (53)
Accounts payable (123) (11) (14) 153 5
Accrued liabilities 3 (1) 101 6 109
Employee vested benefits (2) (2) (1) (2) (7)
Due to other governments 7 - - - 7
Net pension liability 93 5 21 163 282
Deferred outflows of resources (20) - (3) (25) (48)
Deferred inflows of resources (72) (2) (13) (65) (152)
Other post employment benefits liability 22 1 2 16 41
Total adjustments 1,865 4 71 503 2,443
Net cash flows from operating activities 3,689$ 52$ 98$ 552$ 4,391$
Noncash Investing, Capital, and Financing
Activities:
Contributions of capital assets from
government and others 93$ -$ -$ -$ 93$
(amounts expressed in thousands)
City of Iowa City, Iowa
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2021
104
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 Page
Financial Trends 107
These schedules contain trend information to help the reader understand how
the government’s financial performance and well-being have changed over
time.
Revenue Capacity 112
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity 122
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 128
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 130
These schedules contain service and infrastructure data to help the reader
understand how the information in the government’s financial report relates to
the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial report for the relevant year.
105
106
2012 20131 2014 2015 20162 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 135,998$ 133,989$ 138,482$ 153,729$ 163,362$ 183,651$ 203,077$ 208,028$ 220,004$ 228,418$
Restricted 35,021 22,867 39,958 36,447 42,154 47,676 41,490 38,819 33,578 33,664
Unrestricted 38,906 50,744 39,758 15,520 18,402 16,264 17,646 20,124 21,819 25,528
Total governmental activities net position 209,925$ 207,600$ 218,198$ 205,696$ 223,918$ 247,591$ 262,213$ 266,971$ 275,401$ 287,610$
Business-type activities
Net investment in capital assets 195,073$ 253,617$ 264,727$ 279,272$ 279,679$ 285,912$ 294,109$ 304,111$ 314,523$ 315,915$
Restricted 20,176 19,033 19,438 22,389 22,269 21,238 22,219 18,055 17,558 14,859
Unrestricted 58,850 74,370 71,542 57,367 69,472 76,664 73,126 77,224 76,661 84,097
Total business-type activities net position 274,099$ 347,020$ 355,707$ 359,028$ 371,420$ 383,814$ 389,454$ 399,390$ 408,742$ 414,871$
Primary government
Net investment in capital assets 331,071$ 387,606$ 403,209$ 433,001$ 443,041$ 469,563$ 497,186$ 512,139$ 534,527$ 544,333$
Restricted 55,197 41,900 59,396 58,836 64,423 68,914 63,709 56,874 51,136 48,523
Unrestricted 97,756 125,114 111,300 72,887 87,874 92,928 90,772 97,348 98,480 109,625
Total primary government net position 484,024$ 554,620$ 573,905$ 564,724$ 595,338$ 631,405$ 651,667$ 666,361$ 684,143$ 702,481$
1 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013.
2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
City of Iowa City, Iowa
Net Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
(amounts expressed in thousands)
107
2012 20131 2014 2015 20162 2017 2018 2019 2020 2021
Expenses
Governmental activities:
Public safety 21,186$ 20,989$ 22,721$ 21,193$ 22,029$ 24,002$ 25,191$ 26,265$ 29,252$ 30,411$ Public works 17,556 10,240 8,258 11,037 10,839 12,032 12,813 16,324 16,071 16,363 Culture and recreation 13,107 14,481 16,586 14,049 14,422 15,525 16,363 16,009 16,233 15,774
Community and economic development 16,305 10,596 10,059 7,093 6,786 8,253 12,019 16,022 9,383 8,549
General government 7,591 7,513 7,687 7,752 6,240 6,124 6,858 7,524 7,693 10,529
Debt service 2,400 2,237 1,797 1,517 1,287 1,481 1,414 1,444 1,452 1,561
Total governmental activities expenses 78,145 66,056 67,108 62,641 61,603 67,417 74,658 83,588 80,084 83,187
Business-type activities: Wastewater 11,069 10,464 21,139 12,131 11,866 11,233 11,392 11,413 10,807 12,520 Water 8,781 9,074 8,723 8,403 8,149 8,921 9,472 9,543 9,302 10,177 Sanitation 8,315 7,279 8,402 8,114 8,735 9,123 9,408 10,858 10,145 10,045 Housing authority 7,911 7,658 7,703 7,873 8,378 8,798 9,535 10,170 10,021 10,141 Parking 4,167 4,579 4,093 4,678 4,460 4,620 5,590 5,461 5,014 4,613 Airport 1,127 1,086 1,209 1,612 1,597 1,402 1,680 1,466 2,511 1,835 Stormwater 1,304 1,318 1,314 2,091 1,989 2,432 1,844 1,832 2,198 2,105 Cable television 689 692 781 704 - - - - - - Transit - 6,998 7,795 7,379 7,486 7,263 8,071 8,833 9,041 8,107 Total business-type activities expenses 43,363 49,148 61,159 52,985 52,660 53,792 56,992 59,576 59,039 59,543
Total primary government expenses 121,508$ 115,204$ 128,267$ 115,626$ 114,263$ 121,209$ 131,650$ 143,164$ 139,123$ 142,730$
Program Revenues Governmental activities: Charges for services Public safety 3,401$ 4,098$ 3,626$ 3,926$ 4,813$ 5,286$ 4,438$ 4,870$ 4,430$ 4,277$ Public works 1,112 52 61 388 628 724 62 290 243 482 Culture and recreation 825 775 808 801 823 842 836 854 508 322 Community and economic development - - 45 50 1,044 36 441 548 59 1,837 General government 2,817 2,763 3,030 2,975 1,252 1,524 1,520 1,717 1,551 1,582 Operating grants and contributions 8,682 4,731 3,231 8,701 9,941 10,828 10,245 13,758 13,113 12,479 Capital grants and contributions 6,078 6,876 5,580 11,556 3,999 9,952 1,459 1,972 1,915 2,845 Total governmental activities program revenues 22,915 19,295 16,381 28,397 22,500 29,192 19,001 24,009 21,819 23,824
Business-type activities:
Charges for services:
Wastewater 12,670 12,832 12,559 12,189 12,266 12,277 12,626 12,831 12,357 12,155
Water 8,419 8,583 8,443 8,527 9,134 9,275 9,473 9,640 10,048 9,934
Sanitation 8,115 8,181 8,467 9,015 9,215 9,927 10,014 10,017 10,193 11,944
Housing authority 207 205 213 237 300 321 323 295 280 296
Parking 4,743 5,043 5,294 5,502 5,438 5,453 5,648 5,982 4,354 3,758 Airport 306 314 328 349 333 345 348 361 371 376
Stormwater 811 974 1,093 1,147 1,168 1,544 1,560 1,568 1,730 1,701
Cable Television 824 816 773 750 - - - - - - Transit1 - 2,117 2,185 2,289 2,099 2,089 2,216 2,171 1,802 1,385
Capital grants and contributions: Wastewater 3,223 30,181 7,105 1,370 3,415 2,226 1,913 1,827 2,550 1,580
Capital grants and contributions: Water 977 494 539 581 254 869 483 488 965 834
Capital grants and contributions: Sanitation 2 - - - - - 22 13 - - Capital grants and contributions: Airport 1,576 2,452 5,214 137 260 58 49 38 134 267
Capital grants and contributions: Stormwater 436 226 711 792 370 1,251 892 902 876 1,230
Capital grants and contributions: Parking 4 - - - - - - - - - Capital grants and contributions: Transit - 898 243 - 308 395 3,827 - - 77
Operating grants and contributions: Housing authority 6,782 6,968 6,721 7,628 8,318 8,532 9,065 9,443 9,875 9,691
Operating grants and contributions: Water - 442 6 2 - - - - 2 45
Operating grants and contributions: Airport - 11 56 232 128 69 72 14 896 332
Operating grants and contributions: Sanitation - 23 27 25 3 - 3 104 20 18
Operating grants and contributions: Wastewater - - 62 21 - - - - 8 -
Operating grants and contributions: Stormwater - 13 13 279 95 - 2 - - -
Operating grants and contributions: Parking - - - - - - - - 3 -
Operating grants and contributions: Transit - 1,767 2,118 2,082 2,095 2,235 2,088 2,152 3,107 3,016
Total business-type activities program revenues 49,095 82,540 62,170 53,154 55,199 56,866 60,624 57,846 59,571 58,639
Total primary government revenues 72,010$ 101,835$ 78,551$ 81,551$ 77,699$ 86,058$ 79,625$ 81,855$ 81,390$ 82,463$
Net (Expense) / Revenues Governmental activities (55,230)$ (46,761)$ (50,727)$ (34,244)$ (39,103)$ (38,225)$ (55,657)$ (59,579)$ (58,265)$ (59,363)$ Business-type activities 5,732 33,392 1,011 169 2,539 3,074 3,632 (1,730) 532 (904) Total primary government net expense (49,498)$ (13,369)$ (49,716)$ (34,075)$ (36,564)$ (35,151)$ (52,025)$ (61,309)$ (57,733)$ (60,267)$
General Revenues and Other Changes in Net Position Governmental activities: General revenues: Property taxes 50,516$ 51,017$ 50,551$ 52,205$ 53,114$ 57,649$ 59,046$ 61,739$ 62,846$ 69,482$
Road use tax3 6,394 6,589 6,745 - - - - - - -
Local Sales Option tax 8,644 8,858 466 - - - - - - -
Other taxes 2,491 2,609 2,778 2,810 2,717 2,802 2,706 2,935 2,696 2,576 Grants and contributions not restricted to specific purposes - - - 1,048 2,080 1,583 1,547 1,552 1,513 1,587
Earnings on investments 1,823 841 973 1,188 1,045 1,397 2,368 3,257 2,585 841
Miscellaneous 4,228 4,390 4,353 5,518 4,464 3,369 3,656 3,329 3,331 3,030 Gain on sale of assets 2,950 1,312 1,651 135 218 2,151 140 186 111 213
Transfers (3,867) (10,485) (6,192) (10,057) (6,395) (7,053) 1,814 (8,661) (6,387) (6,157)
Reassignments - - - - 82 - - - - - Total governmental activities 73,179 65,131 61,325 52,847 57,325 61,898 71,277 64,337 66,695 71,572
(continued)
City of Iowa City, Iowa
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
(amounts expressed in thousands)
108
2012 20131 2014 2015 20162 2017 2018 2019 2020 2021Business-type activities: General revenues: Earnings on investments 813 671 494 707 715 938 1,496 2,166 1,794 426 Gain on sale of assets 336 293 725 856 2,463 69 2,438 1 74 22 Miscellaneous 484 918 265 374 362 1,260 456 838 565 428 Transfers 3,867 10,485 6,192 10,057 6,395 7,053 (1,814) 8,661 6,387 6,157 Reassignments - - - - (82) - - - - - Special items - - - (574) - - - - - - Extraordinary items (5,000) - - - - - - - - - Total business-type activities 500 12,367 7,676 11,420 9,853 9,320 2,576 11,666 8,820 7,033
Total primary government 73,679$ 77,498$ 69,001$ 64,267$ 67,178$ 71,218$ 73,853$ 76,003$ 75,515$ 78,605$
Change in Net Position Governmental activities 17,949$ 18,370$ 10,598$ 18,603$ 18,222$ 23,673$ 15,620$ 4,758$ 8,430$ 12,209$ Business-type activities 6,232 45,759 8,687 11,589 12,392 12,394 6,208 9,936 9,352 6,129 Total primary government 24,181$ 64,129$ 19,285$ 30,192$ 30,614$ 36,067$ 21,828$ 14,694$ 17,782$ 18,338$
1 The City of Iowa City reclassified the Mass Transportation Fund from the General Fund to an Enterprise Fund effective the fiscal year ending June 30, 2013.
2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
3 The City of Iowa City reclassified Road Use Tax from General Revenues to Operating Grants effective for the fiscal year ending June 30, 2015.
City of Iowa City, Iowa
Changes in Net Position (continued)
Last Ten Fiscal Years(Accrual basis of accounting)
(amounts expressed in thousands)
109
2012 20131 2014 2015 20162 2017 2018 2019 2020 2021
General Fund
Nonspendable 314$ 69$ 69$ 69$ 69$ 788$ 793$ 887$ 549$ 469$
Restricted 23,779 25,689 26,533 25,291 18,975 9,974 1,942 1,808 1,747 1,455
Committed - - - - 4,699 5,199 4,962 - - -
Assigned 5,191 1,744 3,400 - 1,143 1,342 1,437 3,565 5,708 9,883
Reserved - - - 4,483 - - - - - -
Unassigned 14,273 17,113 17,907 19,286 23,366 24,793 28,516 34,358 35,369 40,414
Total general fund 43,557$ 44,615$ 47,909$ 49,129$ 48,252$ 42,096$ 37,650$ 40,618$ 43,373$ 52,221$
All other Governmental Funds
Nonspendable -$ -$ -$ -$ -$ 344$ 165$ 224$ 278$ 218$
Restricted 34,853 28,108 31,285 27,897 38,266 63,941 64,033 50,966 48,728 51,931
Unassigned (366) (5,844) (9) - - - (38) (59) (611) (27)
Total all other governmental funds 34,487$ 22,264$ 31,276$ 27,897$ 38,266$ 64,285$ 64,160$ 51,131$ 48,395$ 52,122$
1 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013.
2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
City of Iowa City, Iowa
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(amounts expressed in thousands)
110
2012 20131 2014 2015 20162 2017 2018 2019 2020 2021
Revenues:
Property taxes and assessments 61,649$ 62,483$ 53,797$ 55,014$ 55,831$ 60,452$ 61,753$ 64,672$ 65,542$ 72,058$
Licenses and permits 1,307 1,784 1,660 1,806 3,056 3,521 2,734 2,981 2,352 2,541
Intergovernmental 21,952 19,941 17,636 21,086 20,230 24,140 14,944 16,828 18,603 20,127
Charges for services 2,614 1,800 1,819 2,204 3,357 2,355 2,295 2,690 1,715 3,446
Fines and forfeits - - - - 760 750 695 776 609 375
Use of money and property 1,768 782 909 1,080 946 1,235 1,937 2,564 1,872 773
Miscellaneous 5,750 6,325 6,040 7,045 2,913 2,101 2,875 2,261 2,440 2,112
Total governmental activities revenues 95,040$ 93,115$ 81,861$ 88,235$ 87,093$ 94,554$ 87,233$ 92,772$ 93,133$ 101,432$
Expenditures
Current
Public safety 20,091$ 20,648$ 21,370$ 21,996$ 21,701$ 22,513$ 23,360$ 24,295$ 25,637$ 26,167$
Public works 15,462 8,503 8,432 12,071 9,466 9,186 10,052 10,894 10,586 11,447
Culture and recreation 13,075 13,000 13,087 11,821 12,257 13,341 14,208 13,709 13,653 12,979
Community and economic development 8,037 8,219 8,196 5,711 5,346 7,695 11,074 15,723 8,627 8,305
General government 7,553 7,286 7,184 7,608 6,007 5,882 6,017 6,579 6,789 9,788
Debt service
Principal 13,294 16,465 13,560 12,564 13,230 13,305 11,895 12,080 11,385 12,745
Interest 2,543 2,339 1,903 1,669 1,475 1,597 1,570 1,589 1,648 1,905
Capital projects 16,006 17,861 14,528 14,762 14,848 18,405 28,225 22,632 21,211 12,173
Total expenditures 96,061$ 94,321$ 88,260$ 88,202$ 84,330$ 91,924$ 106,401$ 107,501$ 99,536$ 95,509$
Excess (deficiency) of revenues over
(under) expenditures (1,021)$ (1,206)$ (6,399)$ 33$ 2,763$ 2,630$ (19,168)$ (14,729)$ (6,403)$ 5,923$
Other financing sources (uses):
Issuance of long-term debt 9,690$ 2,655$ 19,730$ 7,785$ 9,405$ 22,570$ 11,995$ 12,535$ 12,145$ 11,325$
Issuance of refunding debt - - - - - - - - - -
Sale of capital assets 3,619 1,369 1,684 165 252 2,292 140 758 111 233
Insurance Recoveries 53 - - - - - - - - -
Premium (discount) on issuance of bonds 165 (42) 385 199 441 120 236 81 927 1,464
Payment of refunded bonds - - - - - - - - - -
Transfers in 19,499 25,198 13,040 13,089 25,133 34,675 34,666 25,663 21,236 21,223
Transfers out (23,181) (35,493) (16,134) (23,430) (28,502) (47,033) (32,440) (34,369) (27,997) (27,593)
Total other financing sources (uses)9,845$ (6,313)$ 18,705$ (2,192)$ 6,729$ 12,624$ 14,597$ 4,668$ 6,422$ 6,652$
Net change in fund balances 8,824$ (7,519)$ 12,306$ (2,159)$ 9,492$ 15,254$ (4,571)$ (10,061)$ 19$ 12,575$
Debt service as a percentage of
noncapital expenditures 18.6%24.0%20.7%19.8%21.2%19.9%17.1%15.6%15.9%17.1%
Debt services as a percentage of
expenditures and transfers 13.3%14.5%14.8%12.7%13.0%10.7%9.7%9.6%10.2%11.9%
1 The City of Iowa City reclassified the Mass Transportation Fund from the General fund to an Enterprise Fund effective the fiscal year ending June 30, 2013.
2 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
City of Iowa City, Iowa
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
111
Fiscal Local Option Utility
Year Property Tax Road Use Tax Hotel/Motel Tax Sales Tax1 Franchise Fee Total
2012 51,374 6,394 811 8,644 822 68,045
2013 51,836 6,589 872 8,858 918 69,073
2014 51,331 6,745 967 466 1,031 60,540
2015 53,056 7,231 1,057 - 902 62,246
2016 53,878 8,320 1,079 - 874 64,151
2017 58,375 8,672 1,137 - 939 69,123
2018 59,730 8,427 1,046 - 976 70,179
2019 62,407 8,820 1,302 - 965 73,494
2020 63,523 9,163 1,135 - 884 74,705
2021 70,126 10,077 938 - 994 82,135
1 1% Local Option Sales Tax went into effect 7/1/09 and was effective through 6/30/13.
City of Iowa City, Iowa
General Government Tax Revenues by Source
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(amounts expressed in thousands)
112
Assessed Valuation
Tax Collection Year:
FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 FY2012
Residential 4,958,648,218$ 4,399,451,083$ 4,255,597,838$ 4,001,761,478$ 3,882,757,454$ 3,603,743,609$ 3,488,112,611$ 3,367,051,717$ 3,284,249,136$ 3,182,636,485$
Agricultural (taxed at Ag rate)1,748,000 2,539,080 2,625,810 3,425,692 3,720,671 3,553,520 3,680,920 2,655,640 2,516,440 2,263,884
Multi-Residential 539,636,381 489,176,499 471,420,082 411,460,472 410,426,868 - - - - -
Commercial 1,060,943,044 932,699,374 915,964,068 821,949,555 805,734,128 1,129,397,979 1,144,437,631 1,113,600,025 1,149,535,927 1,146,182,052
Industrial 80,663,794 76,905,588 71,553,904 72,635,554 73,206,895 74,399,739 80,153,614 72,834,630 73,400,730 73,044,725
Railroads 4,488,469 3,601,348 3,549,414 3,984,932 4,096,577 4,015,580 3,827,506 3,205,451 2,619,932 1,799,383
Utilities w'out Gas & Electric 6,152,547 7,386,408 7,099,293 6,734,894 7,375,066 8,239,789 9,599,528 10,816,940 11,051,685 10,729,898
Gross valuation 6,652,280,453 5,911,759,380 5,727,810,409 5,321,952,577 5,187,317,659 4,823,350,216 4,729,811,810 4,570,164,403 4,523,373,850 4,416,656,427
Less: Military exemption 2,435,380 2,489,088 2,579,836 2,635,396 2,727,994 2,828,002 2,939,122 3,059,502 3,096,542 3,163,216
Net valuation 6,649,845,073 5,909,270,292 5,725,230,573 5,319,317,181 5,184,589,665 4,820,522,214 4,726,872,688 4,567,104,901 4,520,277,308 4,413,493,211
Incremental value 89,469,635 115,175,495 85,379,709 80,577,275 72,666,677 42,307,287 21,131,574 14,113,908 11,712,327 25,408,838
Gas and Electric Utilities 118,583,613 109,124,421 97,050,716 94,582,279 92,987,351 87,728,294 78,642,915 87,100,183 83,538,109 81,240,051
Total Assessed valuation 6,857,898,321$ 6,133,570,208$ 5,907,660,998$ 5,494,476,735$ 5,350,243,693$ 4,950,557,795$ 4,826,647,177$ 4,668,318,992$ 4,615,527,744$ 4,520,142,100$
Percent change 11.809%3.824%7.520%2.696%8.074%2.567%3.392%1.144%2.110%1.579%
Taxable Valuation
Tax Collection Year:
FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 FY2012
Assessment Limitation:
Residential rollback 55.0743%56.9180%55.6209%56.9391%55.6259%55.7335%54.4002%52.8166%50.7518%48.5299%
Agricultural rollback 81.4832%56.1324%54.4480%47.4996%46.1068%44.7021%43.3997%59.9334%57.5411%69.0152%
Multi-Residential rollback 71.25%75.00%78.75%82.50%86.25%NA NA NA NA NA
Commercial and Railroad rollback 90.0%90.0%90.0%90.0%90.0%90.0%95.0%NA NA NA
Industrial rollback 90.0%90.0%90.0%90.0%90.0%90.0%95.0%NA NA NA
Residential 2,719,569,602$ 2,490,442,298$ 2,356,529,643$ 2,274,451,551$ 2,155,033,296$ 2,008,493,138$ 1,894,079,854$ 1,776,096,066$ 1,666,036,081$ 1,544,260,536$
Agricultural (taxed at Ag rate)1,424,328 1,425,151 1,429,547 1,618,090 1,706,955 1,588,496 1,597,501 1,591,636 1,447,988 1,562,422
Multi-Residential 382,070,966 363,613,829 368,969,925 337,946,106 353,335,857 - - - - -
Commercial 950,525,463 832,628,954 819,505,276 734,200,396 720,036,878 1,016,458,199 1,086,556,293 1,113,600,025 1,149,535,927 1,146,182,052
Industrial 72,596,824 68,970,889 64,152,540 64,688,055 65,301,535 66,959,765 76,128,877 72,834,630 73,400,730 73,044,725
Railroads 4,039,622 3,241,213 3,194,473 3,586,439 3,686,919 3,614,022 3,636,130 3,205,451 2,619,932 1,799,383
Utilities w'out Gas & Electric 6,152,547 7,386,408 7,099,293 6,734,894 7,375,066 8,239,789 9,599,528 10,816,940 11,051,685 10,729,898
Gross valuation 4,136,379,352 3,767,708,742 3,620,880,697 3,423,225,531 3,306,476,506 3,105,353,409 3,071,598,183 2,978,144,748 2,904,092,343 2,777,579,016
Less: Military exemption 2,435,380 2,489,088 2,579,836 2,635,396 2,727,994 2,828,002 2,939,122 3,059,502 3,096,542 3,163,216
Net valuation 4,133,943,972 3,765,219,654 3,618,300,861 3,420,590,135 3,303,748,512 3,102,525,407 3,068,659,061 2,975,085,246 2,900,995,801 2,774,415,800
Incremental value 84,077,937 115,175,495 85,379,369 80,559,947 72,650,838 33,331,128 21,131,574 14,113,908 11,712,327 25,408,838
Gas and Electric Utilities 40,156,239 42,719,065 41,797,475 41,702,196 44,986,783 46,785,426 47,004,994 46,813,214 47,404,050 48,337,968
Total Taxable Valuation 4,258,178,148$ 3,923,114,214$ 3,745,477,705$ 3,542,852,278$ 3,421,386,133$ 3,182,641,961$ 3,136,795,629$ 3,036,012,368$ 2,960,112,178$ 2,848,162,606$
Percent change 8.541%4.743%5.719%3.550%7.501%1.462%3.320%2.564%3.931%3.270%
Total Direct Tax Rate
City of Iowa City 15.773$ 15.833$ 16.183$ 16.333$ 16.583$ 16.651$ 16.705$ 16.805$ 17.269$ 17.842$
Sources:
Iowa Department of Management
Notes:
Property is reassessed in the odd numbered years to make adjustments to all property values, according to current market values. As per the Code of Iowa, all real property subject to taxation
shall be valued at its actual value and, except as otherwise provided, shall be reassessed at 100% of its actual value.
City of Iowa City, Iowa
Assessed and Taxable Value of Property
Last Ten Fiscal Years
113
(per $1,000 assessed valuation)
Fiscal Year:2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Levy Year:2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
City:
General Fund 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$ 8.10000$
Emergency Levy 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.24000
Debt Service Fund 4.64901 4.44287 4.02965 4.12963 3.92833 3.82846 3.57846 3.22846 2.97846 2.57846
Employee Benefits 3.52580 3.19286 3.16331 2.96331 3.11277 3.14415 3.14415 3.34415 3.24415 3.34415
Capital Improvement 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Other 1.56669 1.53291 1.51226 1.51226 1.50986 1.51044 1.51044 1.51044 1.51044 1.51044
Total City 17.84150$ 17.26864$ 16.80522$ 16.70520$ 16.65096$ 16.58305$ 16.33305$ 16.18305$ 15.83305$ 15.77305$
Johnson County 6.98984$ 6.74909$ 6.73712$ 6.74168$ 6.90337$ 6.77140$ 6.85143$ 6.53594$ 6.49278$ 6.34581$
Iowa City Community School District 14.59055 14.07327 13.68792 13.69999 13.86773 13.98935 13.95855 14.85629 14.79097 14.83935
Kirkwood 0.99870 1.07888 1.06473 1.05754 1.06125 1.08048 1.13174 1.20354 1.21331 1.25730
Other 0.33310 0.32919 0.37333 0.32315 0.32784 0.32450 0.33036 0.30557 0.27066 0.33110
Total Tax Rate 40.75369$ 39.49907$ 38.66832$ 38.52756$ 38.81115$ 38.74878$ 38.60513$ 39.08439$ 38.60077$ 38.54661$
Source: "Tax Levies for Johnson County, Iowa," compiled by the Johnson County Auditor.
Note:
Does not include the tax rate for agriculture.
Taxpayers in the Iowa City Community School District Area
City of Iowa City, Iowa
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
114
Collection Total Tax Current Tax Delinquent Tax Total Tax
Year Levied Collections Collections1 Collections
2012 49,595 49,543 99.9 1 49,544 99.9
2013 50,407 50,139 99.5 3 50,142 99.5
2014 50,307 49,835 99.1 1 49,836 99.1
2015 51,609 51,292 99.4 3 51,295 99.4
2016 52,034 52,074 100.1 0 52,074 100.1
2017 55,330 55,331 100.0 0 55,331 100.0
2018 56,458 56,346 99.8 1 56,347 99.8
2019 59,174 59,252 100.1 2 59,254 100.1
2020 60,297 58,971 97.8 1 58,972 97.8
2021 65,849 65,656 99.7 1058 66,714 101.3
Source: Certificate of City Taxes and Johnson County Treasurer's Office
Note: This schedule is presented on a cash basis of accounting. Taxes are collected by the Johnson County Treasurer and
submitted to the City in the following month. Because of the month delay, some years will show Current Tax Collections in
excess of the Total Tax Levied.
1 Delinquent tax collection is presented by collection year, rather than levy year, because information is not available from
Johnson County Treasurer by levy year.
City of Iowa City, Iowa
Levies and Collections
Last Ten Fiscal Years
(Cash basis of accounting)
(amounts expressed in thousands)
Percent of
Levy
Collected
Total as
a Percent of
Levy
115
% of Total % of Total
Taxable Taxable Taxable Taxable
Ten largest taxpayers1 Type of Business Valuation Rank Valuation Valuation Rank Valuation
Rise at Riverfront Crossing Owner LLC Real Estate Developer -$ -N/A %55,705$ 1 1.31 %
BBCS Hawkeye Housing LLC Real Estate Mangment N/A 50,166 2 1.18
ACT Inc (Am College Testing Prgrm)Educational Testing Service 47,985 1 1.68 42,611 3 1.00
Tailwind Iowa City LLC Real Estate Mangment --N/A 42,542 4 1.00
Webber - Iowa LLC Domestic Limited Liability Company - -N/A 28,279 5 0.66
Vesper Iowa City LLC Real Estate Developer --N/A 27,604 6 0.65
Midwestone Bank Finanacial --N/A 27,019 7 0.63
Mid-American Energy Company Public Gas and Electric Utility 44,301 2 1.56 25,546 8 0.60
Augusta Place LLC RealEstate Developer --N/A 25,243 9 0.59
Hollingsworth Capital Partners - Iowa Inc RealEstate Developer --N/A 24,974 10 0.59
Ann Gerdin Trust (formerly Russell Gerdin)Warehousing 20,968 3 0.74 - -N/A
SouthGate Development Company RealEstate Developer 18,273 4 0.64 - -N/A
MEHSM LC (Sycamore Mall)Shopping Mall 16,375 5 0.57 - -N/A
Alpha Inc. Industrial 16,083 6 0.56 - -N/A
Proctor & Gamble LLC Manufacturing Company 15,086 7 0.53 - -N/A
National Computer Systems (Pearson)Information Services 14,410 8 0.51 - -N/A
United Natural Foods Wholesale Distribution Company 12,903 9 0.45 - -N/A
CCA: Hawk Ridge Dr LLC Lodge Apts Apartments 12,052 10 0.42 - -N/A
Total 218,436$ 7.66 %349,689$ 8.21 %
Sources:
1City of Iowa City Assessor's Office
City of Iowa City, Iowa
Principal Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
20212012
116
117
Customer Name Charges Rank Percentage Charges Rank Percentage
Proctor & Gamble 589,583$ 1 7.41 %739,049$ 1 7.81 %
Veterans Administration Medical Center 108,018 2 1.36 100,143 2 1.06
Mercy Hospital 71,544 3 0.90 78,892 3 0.83
Campus Apartments 62,159 5 0.78 73,955 4 0.78
Tailwind Iowa City LLC formerly Dolphin Lake --N/A 63,774 5 0.67
Dominium JIT Srv formerly Mark IV Apts 59,404 6 0.75 60,226 6 0.64
Oaknoll Retirement Residence --N/A 43,145 7 0.46
Seville Apts 33,505 9 0.42 39,597 8 0.42
Emerald Court Apts --N/A 37,789 9 0.40
Rise at Riverfront Crossing --N/A 33,922 10 0.36
Rus Property Management/Lakeside Manor 70,173 4 0.88 --N/A
University of Iowa Mayflower 44,794 7 0.56 --N/A
ACT 38,819 8 0.49 --N/A
RBD Iowa City LLC (Sheraton Hotel)32,246 10 0.41 --N/A
1,110,245$ 13.96 %1,270,492$ 13.43 %
Total Water System Charges 7,953,738$ 9,459,987$
Sources:
City of Iowa City Revenue Division
City of Iowa City, Iowa
Larger Water System Customers
Current Year and Nine Years Ago
20212012
118
Fiscal Water Sales Water System
Year Cubic Feet Sold Charges
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 8,161,522
2016 255,524,943 8,758,683
2017 267,511,531 9,156,005
2018 293,046,636 9,953,510
2019 289,055,329 10,139,587
2020 285,102,926 10,705,168
2021 237,035,139 9,459,987
Sources:
City of Iowa City Revenue Department
Notes:
1Beginning in March 2015, Water Sales by Cubic Feet Sold also includes unbilled usage.
City of Iowa City
Sales History and Water System Charges
Last Ten Fiscal Years
119
Customer Name Charges Rank Percentage Charges Rank Percentage
University of Iowa 2,127,659$ 1 16.69 %1,729,679$ 1 14.63 %
Proctor & Gamble 1,051,742 2 8.25 918,828 2 7.77
Iowa City Landfill 120,138 5 0.94 115,947 3 0.98
Veterans Administration Medical Center 169,399 3 1.33 99,127 4 0.84
Mercy Hospital 122,441 4 0.96 97,216 5 0.82
Campus Apartments 84,386 8 0.66 83,604 6 0.71
Dominium JIT Srv formerly Mark IV Apts 85,055 7 0.67 67,983 7 0.58
Tailwind Iowa City LLC formerly Dolphin Lake 119,505 6 0.94 65,641 8 0.56
Oaknoll Retirement Residence - -0.00 55,115 9 0.47
Seville Apts - -0.00 49,030 10 0.41
University of Iowa/Mayflower Apartments 79,062 9 0.62 --N/A
RBD Iowa City LLC (Sheraton Hotel)56,092 10 0.44 - -N/A
4,015,479$ 31.50 %3,282,170$ 27.77 %
Total Sewer System Charges 12,748,321$ 11,819,500$
Sources:
City of Iowa City Revenue Department
City of Iowa City, Iowa
Larger Sewer System Charges
Current Year and Nine Years Ago
20212012
120
Fiscal Sewer Sales Sewer System
Year Cubic Feet Sold Charges
2012 282,134,840 12,784,321
2013 285,472,392 12,883,641
2014 269,494,125 12,382,031
20151 266,830,947 12,278,153
2016 270,547,701 12,022,203
2017 277,712,785 12,404,360
2018 283,246,320 12,524,540
2019 288,537,266 12,822,250
2020 279,106,456 12,503,764
2021 265,605,446 11,819,500
Sources:
City of Iowa City Revenue Department
Notes:
1Beginning in March 2015, Sewer Sales by Cubic Feet Sold also includes unbilled usage.
City of Iowa City, Iowa
Sales History and Sewer System Charges
Last Ten Fiscal Years
121
General Capital General Total Percentage
Fiscal Obligation Revenue Loan Obligation Revenue Capital Primary of Personal Per
Year Bonds1 Bonds1 Note Bonds1 Bonds1 Lease Government Income2 Capita2
2012 74,225,654 - 210,784 1,483,473 69,059,307 - 144,979,218 2.05 2,103
2013 57,688,803 2,614,644 210,784 1,182,315 62,764,738 - 124,461,284 1.70 1,775
2014 64,132,510 2,616,768 210,784 886,157 57,568,517 - 125,414,736 1.62 1,752
2015 59,421,203 2,618,892 210,784 590,000 45,566,903 - 108,407,782 1.40 1,475
2016 55,998,392 2,491,016 210,784 295,000 39,951,661 - 98,946,853 1.23 1,327
2017 52,571,254 15,168,140 210,784 - 34,420,914 14,482,714 116,853,806 1.34 1,544
2018 52,883,524 15,035,264 210,784 - 29,095,062 11,958,305 109,182,939 1.18 1,442
2019 53,402,638 14,902,388 210,784 - 21,155,710 9,413,024 99,084,544 1.03 1,319
2020 55,007,945 14,764,512 210,784 - 16,786,358 - 86,769,599 0.87 1,160
2021 56,685,493 12,781,636 210,784 - 12,242,006 - 81,919,919 0.80 1,083
Notes:
Details regarding the city's outstanding debt can be found in the notes to the financial statements.
1 Bonds reported net of related premiums and discounts.
2 Population and personal income information can be found on page 128.
Governmental Activities Business-Type Activities
City of Iowa City, Iowa
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
122
Gross General Less: Debt Net General Net Bonded Debt Net Bonded
Fiscal Obligation Service Obligation per $1,000 of Debt
Year Bonded Debt 1 Fund Balance Bonded Debt Assessed Value Per Capita2
2012 75,709 11,009 64,700 14.31 : 1000 938
2013 58,871 6,527 52,344 11.34 : 1000 746
2014 65,019 6,872 58,147 12.46 : 1000 812
2015 60,011 7,052 52,959 10.97 : 1000 721
2016 56,293 6,573 49,720 10.04 : 1000 670
2017 52,571 7,756 44,815 8.38 : 1000 592
2018 52,884 8,609 44,275 8.06 : 1000 585
2019 53,403 9,648 43,755 7.41 : 1000 582
2020 55,008 9,724 45,284 7.38 : 1000 605
2021 56,685 7,551 49,134 7.16 : 1000 649
Notes:
1 General Obligation bonds, net of related premiums and discounts.
2 Population data can be found on page 128.
City of Iowa City Iowa
Ratios of General Obligation Bonded Debt1
to Assessed Value and Net Bonded Debt per Capita
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita)
123
City of Iowa City, Iowa
Computation of Direct and Overlapping Debt
June 30, 2021
(amounts expressed in thousands, except per capita)
Total General Percent Amount
Long-Term Applicable Applicable
Name of Direct Debt to the City of to the City of
Governmental Unit Outstanding Iowa City Iowa City
City of Iowa City2 69,678$ 100.00 %69,678$
Iowa City Community
School District1 170,605 58.74 100,213
Johnson County1 31,261 43.63 13,639
Clear Creek- Amana
Community School District1 82,015 0.04 33
Kirkwood Comm. College1 141,210 14.87 20,998
Total Overlapping Debt 425,091 134,883
Total Direct & Overlapping Debt 494,769$ 204,561$
1 Long term debt outstanding includes only GO debt.
2Net direct debt includes premiums & discounts
Source: Johnson County Auditor's Office.
each overlapping government.
However,this does not imply that every taxpayer is a resident,and therefore responsible for repaying the debt,of
Note:Overlapping governments are those that coincide,at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of Iowa City.This process recognizes that,when considering the City's ability to issue
and repay long-term debt,the entire burden borne by the residents and businesses should be taken into account.
124
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Assessed
Valuation 4,520,142$ 4,615,527$ 4,668,319$ 4,826,648$ 4,950,559$ 5,350,228$ 5,494,459$ 5,907,661$ 6,133,570$ 6,857,898$
Debt Limit 226,007 230,776 233,416 241,332 247,528 267,511 274,723 295,383 306,679 342,895
G.O. Bonds 75,320 58,550 64,420 59,340 55,350 51,645 51,880 52,470 53,370 53,935
TIF Rev. Bonds - 2,655 2,655 2,655 2,525 15,200 15,065 14,930 14,790 12,805
Letters of credit 805 538 1,943 2,005 582 663 475 603 - -
Notes payable 211 211 211 211 211 211 211 211 211 211
TIF rebates 574 307 170 18,206 13,506 17,356 25,012 27,954 25,877 36,944
Total net debt
applicable to limit 76,910 62,261 69,399 82,417 72,174 85,075 92,643 96,168 94,248 103,895
Legal debt margin 149,097$ 168,515$ 164,017$ 158,915$ 175,354$ 182,436$ 182,080$ 199,215$ 212,431$ 239,000$
Total net debt
applicable to
the limit as a
percentage of
debt limit 34.03%26.98%29.73%34.15%29.16%31.80%33.72%32.56%30.73%30.30%
1As reported in the Annual Financial Report to the State
Note: Under Iowa code, the city's outstanding general obligation debt should not exceed 5 percent of total assessed property value.
Fiscal Year
City of Iowa City, Iowa
Legal Debt Margin Information1
Last Ten Fiscal Years
(amounts expressed in thousands)
125
Fiscal
Year Net Revenue Annual Debt Service2
Ended Available for Ratio of
June 30 Revenue Expenses1 Debt Service Principal Interest Total Coverage
Parking Revenue3
2012 4,945 3,034 1,911 500 339 839 2.28
2013 5,122 3,549 1,573 515 324 839 1.87
2014 5,365 2,969 2,396 530 308 838 2.86
20157 5,620 3,828 1,792 540 254 794 2.26
2016 - - - - - - -
2017 5,531 3,683 1,848 1,015 86 1,101 1.68
2018 5,812 3,790 2,022 524 576 1,100 1.84
2019 6,205 3,724 2,481 545 476 1,021 2.43
20209 4,577 3,476 1,101 567 375 942 1.17
20219 - - - - - - -
Wastewater Treatment Revenue4
2012 13,175 5,663 7,512 4,615 1,693 6,308 1.19
2013 13,301 5,340 7,961 4,865 1,547 6,412 1.24
2014 12,835 5,708 7,127 3,250 1,428 4,678 1.52
2015 12,620 6,574 6,046 3,370 1,305 4,675 1.29
2016 12,681 6,513 6,168 3,520 1,175 4,695 1.31
2017 13,383 6,357 7,026 3,625 985 4,610 1.52
2018 13,181 6,622 6,559 3,580 756 4,336 1.51
20198 13,548 6,840 6,708 3,465 539 4,004 1.68
2020 12,917 6,366 6,551 2,510 367 2,877 2.28
2021 12,449 7,874 4,575 2,620 257 2,877 1.59
Water Revenue5
20126 8,649 5,653 2,996 1,200 861 2,061 1.45
20136 9,342 6,348 2,994 845 758 1,603 1.87
20146 8,613 5,818 2,795 1,335 650 1,985 1.41
2015 8,715 5,632 3,083 1,380 610 1,990 1.55
2016 9,323 5,387 3,936 1,715 579 2,294 1.72
2017 9,529 6,332 3,197 1,760 524 2,284 1.40
2018 9,838 6,949 2,889 1,455 394 1,849 1.56
2019 10,078 6,888 3,190 1,510 280 1,790 1.78
2020 10,399 6,752 3,647 1,565 238 1,803 2.02
2021 10,048 7,471 2,577 1,630 193 1,823 1.41
Notes:
1 Excludes depreciation and interest.
2 Includes principal and interest of revenue bonds only.
3 Parking Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service"
is required to be at least 1.25.
4 Wastewater Treatment Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total
Annual Debt Service" is required to be at least 1.10.
5 Water Revenue bonds ratio of "Net Revenue Available for Debt Service" to "Total Annual Debt Service"
is required to be at least 1.10.
6 Refunded Revenue Bonds paid are excluded from the principal of Annual Debt Service.
7 Parking Revenue Bonds defeased are excluded from the principal and interest of Annual Debt Service.
8 Debt Service excludes the amount called early of $2,670,000.
9 Parking Capital Lease called early is excluded from the principal and interest of Annual Debt Service.
City of Iowa City, Iowa
Schedule of Revenue Bond Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
126
Fiscal Taxable
Year Valuation Available 2012D TIF 2016E TIF Available
Ended Available for TIF Tax Increment Revenue Revenue Debt
June 30 Certification (1)Tax Rate (2)Revenues (3)Bonds Bonds Total Coverage
2012 105,863 33.01 3,495 - - - -
2013 109,518 31.86 3,489 - - - -
2014 110,797 30.37 3,365 75 - 75 44.66
2015 141,518 29.79 4,215 75 - 75 55.95
2016 156,898 30.49 4,784 205 - 205 23.30
2017 195,411 30.41 5,943 204 273 477 12.45
2018 226,439 30.34 6,870 207 384 591 11.61
2019 297,479 29.66 8,822 205 384 589 14.97
2020 341,736 29.93 10,228 207 384 591 17.31
2021 539,721 30.03 16,208 205 384 589 27.52
(3)The available tax increment revenues do not reflect an estimate for the portion of the available valuation that would be taxed at
the higher SSMID rate.
City of Iowa City, Iowa
Schedule of TIF Revenue Bond Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
(1)Total taxable valuation available for certification will decrease in fiscal year 2024-25 due to the retirement of the tax increment
of the 2001 Amended portion of the Urban Renewal Area.
(2)The tax increment rate in fiscal year 2013-14 reflects the loss of the local school district's instruction support levy (ISPL) of
$.12405 due to recent legislative changes. TIF tax rate does not include the SSMID levy rate of $2.00 per $1,000 of value. Starting
in fiscal year 2012-13, a portion of the taxable valuation certified will be at the higher rate due to its location in the SSMID.
127
Per Capita
Calendar Personal Personal Average School Retail
Year Population6 Income1 Income1 Increase Enrollment2 Sales4
2012 70,182 7,069,000 44,457 10.89 13,862 4.1 767,122,555
2013 71,454 7,327,594 45,325 1.95 14,057 3.8 793,201,342
2014 72,831 7,762,343 47,345 4.46 14,162 3.5 649,794,164
2015 73,497 8,035,139 48,343 2.11 14,495 2.9 838,853,686
2016 74,587 8,296,973 49,461 2.31 15,186 3.2 853,258,347
2017 75,690 8,713,868 51,198 3.51 15,299 3.0 874,928,988
2018 75,696 9,238,484 54,803 7.04 15,334 2.2 854,538,416
20195 75,130 9,597,499 55,834 1.88 15,619 2.4 865,628,890
20205 74,828 9,921,031 57,716 3.37 15,363 8.4 832,475,900
20215,7 75,651 10,280,531 59,808 3.62 15,636 4.0 616,408,526
Sources and Notes:
1 Personal Income and Per Capita Personal Income based on metropolitan Iowa City / Coralville and based on figures from Bureau of
Economic Analysis. Personal Income expressed in thousands.
2 Iowa City Community School District and local private schools
3 Iowa Workforce Development Center
4 Iowa Retail Sales & Use Report, Iowa Department of Revenue and Finance. Fiscal year ending June 30.
5 Personal Income for 2019 - 2021 and Per Capita Personal Income for 2020 or 2021 are not available. Amounts projected based on average increase
over previous 5 years.
6 US Census Bureau Population number is not avaible for 2021. Amounts projected based on an average over previous 9 years.
7 4th quarter reports were not yet available so amount is only for the first 3 quarters of fiscal year ending June 30.
Demographic and Economic Statistics
City of Iowa City, Iowa
Last Ten Calendar Years
Unemployment
Rate3
128
Employers Employees Rank Percentage Employees Rank Percentage
University of Iowa 30,804 1 34.2 %24,733 1 26.0 %
Iowa City Community School District 1,700 2 1.9 2,578 2 2.7
Veterans Administration Medical Center 1,562 3 1.7 2,012 3 2.1
Hy Vee 1,166 8 1.3 1,327 4 1.4
Proctor and Gamble --N/A 1,004 5 1.1
Mercy Hospital 1,208 6 1.3 912 6 1.0
City of Iowa City 1,216 5 1.4 840 7 0.9
NCS Pearson 1,200 7 1.3 695 8 0.7
Johnson County - -N/A 580 9 0.6
ACT Inc. (formerly American College Testing Program)1,243 4 1.4 570 10 0.6
System Unlimited 890 9 1.0 - -N/A
Internaltion Automotive Components formerly Lear Corp 785 10 0.9 - -N/A
41,774 46.4 %35,251 37.1 %
Total Employees 90,000 95,000
Sources:
Iowa City Area Development Group
Various Employers
City of Iowa City, Iowa
Principal Employers
Current Year and Nine Years Ago
2012 2021
129
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Police 97 103 105 105 105 105 105 107 107 109.26
Animal Shelter1 6 - - - - - - - - -
Fire 65 65 65 64 64 64 64 64 64 64
Inspection Services 15.55 15.55 13.55 13.55 12.85 13.5 13.5 15.6 15.6 17.6
Public Works
Public Works Admin 2 2 2 2 2 2 2 2 2 2
Engineering5 12.1 12.1 12.1 12.1 12 16 16 16 16 18
Flood Recovery 0.4 0.4 0.38 - - - - - - -
Culture and Recreation
Parks and Rec Admin 2 2 2 2 2 2 2 2 2 2
Recreation 15.42 15.42 15.42 15.42 14.42 15.42 14.75 14 14.5 14.5
Parks 13 13 13 13 13 16 16 16 16 16
Forestry 3 3 3 3 3 3 3 5 5 7
Cemetery 3 3 3 3 3 3 3 3 3 3
CBD Maintenance 3 3 3 3 3 - - - - -
Library 43.64 43.63 45.13 45.13 44.77 46.17 46.17 46.17 46.05 45.92
Senior Center 6.5 6.5 6.5 6.5 6.5 7 7 7 7 7.76
Community and Economic Development 9.1 8.4 8.95 8.95 10.8 12.63 13.13 13.13 13.13 12.13
Economic Development 1 1 1 1 2 1 1 1 1 1
General Government
City Council 7 7 7 7 7 7 7 7 7 7
City Clerk 4 4 4 4 4 4 4 4 4 4
City Attorney 5.6 5.6 5.6 5.6 5.5 5.5 5.5 5.5 5.5 5.5
City Manager2 3 5 6 6 10.5 10.5 9 9 9 13.89
Personnel 4 4 3 3 3 3 3 3 3 3
Human Rights 2.5 2 2 2 2 2 2 2 2 2
Finance 27.53 23.47 23.97 22.47 23.07 23.13 22.13 22.28 22.28 22.28
Government Buildings 4.83 4.83 4.83 4.83 5.33 4.33 5 4 5 4
Transit3 56.25 - - - - - - - - -
Special Revenue
Employee Benefits 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55
Flood Mitigation Grants 1.6 - - - - - - - - -
Community Development 3.83 3.33 2.98 2.98 2.83 - - - - -
UniverCity Program - 0.2 - - - - - - - -
Traffic Engineering 4.15 4.15 4.15 4.15 3.9 4.5 3 3 3 3
Streets 25.5 25.5 25.5 25.5 25.25 25.5 29 29 29 29
MPOJC (formerly JCCOG)6.6 5.6 5.6 5.6 4.7 4.7 4.7 5.2 5.2 5.2
Other Shared Revenues - 1.6 1.62 - - - - - - -
Library Development 1 1 - - - - - - - -
Capital Projects Administration5 5 6 6 5 4 - - - - -
Internal Service Funds
Information Technology 11.8 10.86 9.86 9.86 9.86 9.8 10.8 9.8 9.8 9.8
Equipment 11.26 10.75 10.75 10.75 10.75 10.75 10.75 10.75 10.75 11.75
Central Services 0.75 0.76 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Risk Management 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8
Business-Type Activities
Parking 32.75 29.25 26.25 26.25 23.13 21.63 21.63 21.38 19.63 21.38
Mass Transit3 - 51.75 51.25 51.25 51.13 53.63 54.63 53.38 53.38 54.13
Wastewater Treatment 25.4 25.4 24.4 24.65 24.65 25.4 26 26 26 26
Water 32.75 32.75 31.75 32 32 31.75 31.75 31.75 31.75 31.25
Sanitation 37.85 37.85 35.85 35.85 33.35 31.5 31.5 32.76 34.76 35.26
Airport 1.75 1 1 1 1 1 1 1 1 1
Cable Television4 6.63 6.63 6.63 5.63 - - - - - -
Stormwater 2.1 2.1 2.1 2.6 2.6 2.1 1.5 1.5 2.5 2
Housing Authority 13.25 13.18 12.19 10.19 10.19 9.6 9.6 9.5 9.5 10.62
Total 637.74 623.91 615.16 607.66 598.93 599.89 601.89 605.55 608.18 624.08
Source: City's Financial Plan 1 Beginning in FY13, Animal Services is reported under Police
2 Beginning in FY13, Communications Division has been moved from Finance to City Manager
3 Beginning in FY13, Transit was moved from the General Fund to an Enterprise Fund
4 Beginning in FY16, Cable was moved from an Enterprise Fund to the General Fund
5 Beginning in FY17, Capital Project Administration was moved to Engineering
City of Iowa City, Iowa
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Full-Time Equivalent Employees as of June 30
130
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Police1
Physical arrests 5,911 4,468 6,192 5,595 5,465 4,482 4,488 5,212 2,891 2,693
Traffic Violations 3,761 2,499 3,718 3,356 2,989 2,246 3,103 3,422 1,052 1,201
Fire1
Number of calls answered 5,173 4,713 5,828 6,016 6,974 6,749 7,122 7,532 6,979 6,299
Inspections conducted 1,970 1,431 2,032 1,903 2,459 874 1,031 1,300 181 873
Parking
Parking Violations 96,117 88,909 60,680 65,196 57,549 62,930 50,346 61,330 48,042 45,727
Wastewater Treatment
Daily average treatment
in million gallons 8.28 9.84 10.02 9.76 10.48 8.32 7.77 10.97 8.58 7.93
Maximum daily capacity
of plant in million gallons 41.1 41.1 41.1 43.3 43.3 43.3 43.3 43.3 43.3 43.3
Number of sewer system
customers 23,529 24,059 24,389 24,533 25,085 25,485 26,069 26,270 26,576 26,892
Water
Daily average consumption
in million gallons 5.49 5.54 5.64 5.33 5.32 5.50 5.84 5.69 5.33 5.57
Maximum daily capacity of
plant in million gallons 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7
Customers by Classification
Residential 24,086 24,442 24,790 23,089 23,638 24,025 24,595 24,818 25,133 25,452
Commercial 1,489 1,491 1,491 1,409 1,415 1,425 1,436 1,431 1,448 1,448
Industrial 15 15 15 14 14 14 15 15 15 15
Other 200 204 202 135 131 134 136 139 138 137
Total Customers 25,790 26,152 26,498 24,647 25,198 25,598 26,182 26,403 26,734 27,052
Sanitation
Number of Customers 15,030 15,177 15,331 14,811 15,620 15,917 15,960 16,112 16,180 16,330
Tonnage 8,935 8,956 9,160 9,210 9,476 9,623 9,694 8,989 9,682 10,339
Landfill
Tonnage 148,953 111,445 115,624 123,692 126,875 137,025 140,658 127,587 128,210 151,823
Sources: Various city divisions.
Notes:
1 Numbers are based on a calendar year and 2021 figures are compiled through 10/11/21 for FIRE and 10/11/21 for Police.
City of Iowa City, Iowa
Operating Indicators by Function
Last Ten Fiscal Years
131
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 18 18 20 20 20 24 23 23 23 23
Fire
Stations 4 4 4 4 4 4 4 4 4 4
Fire apparatus 11 11 11 11 10 10 10 10 10 10
Public Works
Streets
Miles 275 276 279 281 283 286 288 292 293 295
Street lights 3,412 3,412 3,412 3,412 3,412 3,412 3,307 3,166 3,202 3,246
Culture and Recreation
Library 1 1 1 1 1 1 1 1 1 1
Cemetery 1 1 1 1 1 1 1 1 1 1
Acreage 40 40 40 40 40 40 40 40 40 40
Parks 41 42 43 46 46 49 50 51 56 56
Acreage 1,441 1,506 1,897 1,897 1,902 1,932 1,942 1,947 1,950 1,980
Recreation
Recreation centers 2 2 2 2 2 2 2 2 2 2
Swimming pools 3 3 3 3 3 3 3 3 3 3
Ball diamonds 30 27 27 27 27 27 27 27 27 27
Tennis courts 12 12 12 12 12 9 9 9 9 9
Soccer fields 20 20 20 20 20 20 20 20 20 20
Pickle Ball Courts - - - - - 8 8 8 8 8
Futscal Courts - - - - - 2 2 2 2 2
Full Basketball Courts - - - - - 3 3 3 6 6
Gaga Pits - - - - - - 2 2 2 2
Boccce Court 1
Parking
Facilities 5 5 5 5 5 6 6 6 6 6
Spaces 3,086 3,086 3,086 3,086 3,086 3,686 3,686 3,686 3,686 3,686
Wastewater Treatment
Miles of sanitary sewer 294 295 298 300 301 304 306 307 308 310
Miles of storm sewer 127 128 131 133 136 139 140 142 144 146
Number of treatment plants 2 2 1 1 1 1 1 1 1 1
Number of service connectors 23,529 23,851 24,175 24,533 25,085 25,485 26,069 26,270 26,576 26,892
Water
Miles of water mains 266 268 271 273 275 277 279 281 283 286
Number of city owned fire hydrants 2,735 3,330 3,385 3,415 3,447 3,503 3,529 3,564 3,611 3,647
Sanitation
Landfills 1 1 1 1 1 1 1 1 1 1
Acreage 411 411 411 418 418 418 418 418 418 418
Sources: Various city divisions.
City of Iowa City, Iowa
Last Ten Fiscal Years
Capital Assets by Function
132
Compliance
Section
Tab
City of Iowa City, Iowa
Corrective Action Plan
Year Ended June 30, 2021
Findings
Findings Related to Required Statutory Reporting:
IV-A-21 Expenditures in the debt service function
exceeded the amended budget.
Corrective Action Plan
See response and corrective
action plan at IV-A-21.
144
Anticipated
Date of Completion
and Responsible
Contact Person
Fiscal Year 2022
Director of Finance