HomeMy WebLinkAboutFY2021 Longterm Debt Disclosure Report
Date: January 19, 2022
To: Geoff Fruin, City Manager
From: Jacklyn Fleagle, Budget & Compliance Officer
RE: Long-term Debt Disclosure Report
In accordance with the City Council’s Debt Management Policy, an annual debt report is to be
submitted within 210 days after the fiscal year-end to the City Manager and the City Council. The
City’s fiscal year 2021 ended on June 30, 2021, and this report is intended to provide information
regarding that fiscal year. According to the policy, the annual debt report should include, at a minimum,
the following information:
• General Long-term Debt Obligations:
• Property valuations and trend valuations for total actual and taxable valuations
• List of the City’s 10 largest taxpayers
• Summary of all of the City’s direct, long-term debt obligations
• Debt per capita (GO Debt and TIF Revenue Debt)
• Debt per total assessed value (GO Debt and TIF Revenue Debt)
• City’s debt versus the legal debt limit
• Revenue-Secured Debt Obligations:
• Summary of the system
• Summary of the system’s rates and charges
• The historical trend of system’s sales and charges
• Coverage ratios for system
• Number of system customers, if applicable
• List of system’s 10 largest users, if applicable
According to the policy, the annual debt report should also include a list of any potential upcoming
debt issues and a summary of any material events that have occurred in the past year. The report
may also include any other relevant information that is significant to the City’s debt program or ability
to repay its debt obligations.
During fiscal year 2021, the City incurred the following significant events regarding its bond obligations
and reported them on the Electronic Municipal Market Place (EMMA):
• Principal and interest payment delinquencies: None
• Non-payment related defaults, if material: None
• Unscheduled draws on debt service reserves reflecting financial difficulties: None
• Unscheduled draws on credit enhancements relating to the Bonds reflecting financial
substitution of credit or liquidity providers, or their failure to perform: None
• Substitution of credit or liquidity providers, or their failure to perform: None
• Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material
January 19, 2022
Page 2
notices or determinations with respect to the tax-exempt status of the Series Bonds, or material
events affecting the tax-exempt status of the Bonds: None
• Modifications to rights of Holders of the Bonds, if material: None
• Bond calls (excluding sinking fund mandatory redemptions), if material, and tender offers; a
Notice of Material Event was timely filed for each of these events: None
• Defeasances of the Bonds: None
• Release, substitution, or sale of property securing repayment of the Bonds, if material: None
• Rating changes on the Bonds: None
• Bankruptcy, insolvency, receivership or similar event of the Issuer: None
• The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale
of all or substantially all of the assets of the Issuer, other than in the ordinary course of
business, the entry into a definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than pursuant to its terms, if
material: None
• Appointment of a successor or additional trustee or the change of name of a trustee, if material:
None
• Incurrence of a Financial Obligation of the Issuer, if material, or agreement to covenants events
of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Issuer,
any of which affect security holders, if material: None
• Default, event of acceleration, termination event, modification of terms or similar events under
the terms of a Financial Obligation of the Issuer, any of which reflect financial difficulties: None
In the next 180 days, we are currently anticipating the following potential bond issues:
• 2022 General Obligation Bonds – 2022 CIP Program - $10,300,000
Other potential debt issues include: None
Attached to this memo are summaries that include the additional financial and debt information
mentioned above. This information along with our Fiscal Year 2021 Annual Comprehensive Financial
Report (ACFR) will be provided to our bondholders and will be posted on the Electronic Municipal
Market Access (EMMA) web site in accordance with Municipal Securities Rulemaking Board (MSRB)
rules. This information must be posted by January 26, 2022 in order to comply with the continuing
disclosure certificates on our outstanding bonded debt.
We are not aware of any material or significant events that will prevent the City from meeting its current
outstanding bonded debt obligations.
CONTINUING DISCLOSURE SUBMISSION
FINANCIAL AND OPERATING REPORT
FOR THE FISCAL YEAR JUNE 30, 2021
Relating to
CITY OF IOWA CITY
Johnson County, Iowa
GENERAL OBLIGATION DEBT
CUSIP NO. 462308
To the extent not included in the City’s Financial Statements, all information the City of Iowa City has agreed to
provide in its annual reports, as it relates to its outstanding general obligation debt is included in this report.
Attached is additional information as required to be submitted under previous disclosure undertakings of the City.
Pursuant to Securities and Exchange Commission Rule 15c2-12
For further information please contact:
Nicole Davies
Assistant Finance Director
City of Iowa City
410 E. Washington Street
Iowa City, IA 52240
Telephone: (319) 356-5085
January 17, 2022
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 2
DEBT LIMIT
The constitutional general obligation debt limit of a political subdivision of the state of Iowa is equal to five percent
(5%) of the value of taxable property within its borders. According to and based upon the January 1, 2019 property
valuations, for taxes payable in September 2020 and March 2021 the general obligation debt limit of the City for the period
which began July 1, 2020 and ends June 30, 2021 is:
2019 100% Actual Valuation of Property ............................... $6,857,898,321
Constitutional Debt Limit ....................................................... $ 342,894,916
Outstanding Bonds/Notes Applicable to Debt Limit:
TIF Revenue Debt ................................................................. $ 12,805,000
Total G.O. Debt Subject to Debt Limit.................................... 53,935,000
Other Loans .......................................................................... 210,784
Other Legal Indebtedness (TIF Rebates) .............................. 36,943,555
Total Applicable Debt ............................................................ $ 103,894,339
Remaining Debt Capacity ...................................................... $ 239,000,577
DIRECT DEBT
General Obligation Debt Supported by Property Taxes and Tax Increment
Date of Original Final Principal Outstanding
Issue Amount Issued Purpose Maturity As of 6/30/21
June 2012 $ 9,070,000 Multi-Purpose 6/22 $ 1,005,000
July 2013 7,230,000 Multi-Purpose 6/23 1,725,000
June 2014 11,980,000 Refunded Multi-Purpose 6/24 3,000,000
June 2015 7,785,000 Multi-Purpose 6/25 3,365,000
June 2016 8,795,000 Multi-Purpose 6/26 4,945,000
June 2017 9,765,000 Multi-Purpose 6/27 6,100,000
June 2018 8,895,000 Multi-Purpose 6/28 6,420,000
June 2019 12,535,000 Multi-Purpose 6/29 7,505,000
June 2020 12,145,000 Multi-Purpose 6/30 8,545,000
June 2021 11,325,000 Multi-Purpose 6/31 11,325,000
Total General Obligation Bonds $53,935,000
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City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 3
GENERAL OBLIGATION DEBT(1)
(Principal Only)
Fiscal Year
Ending Series Series Series Series Series Series Series Series Series
June 30 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019 2020
2022 ............................................. $1,005,000 $ 855,000 $ 970,000 $ 805,000 $ 950,000 $ 955,000 $ 855,000 $ 925,000 $ 1,800,000
2023 ............................................. 0 870,000 1,000,000 830,000 965,000 980,000 875,000 955,000 1,200,000
2024 ............................................. 0 0 1,030,000 850,000 985,000 1,000,000 895,000 985,000 805,000
2025 ............................................. 0 0 0 880,000 1,010,000 1,025,000 915,000 875,000 790,000
2026 ............................................. 0 0 0 0 1,035,000 1,055,000 940,000 905,000 790,000
2027 ............................................. 0 0 0 0 0 1,085,000 960,000 940,000 790,000
2028 ............................................. 0 0 0 0 0 0 980,000 960,000 790,000
2029 ............................................. 0 0 0 0 0 0 0 960,000 790,000
2030 ............................................. 0 0 0 0 0 0 0 0 790,000
2031 ............................................. 0 0 0 0 0 0 0 0 0
Total ........................................... $1,005,000 $1,725,000 $3,000,000 $3,365,000 $4,945,000 $6,100,000 $6,420,000 $7,505,000 $8,545,000
Fiscal Year Total
Ending Series General Obligation Cumulative Retirement Principal &
June 30 2021 Debt Amount Percent Interest
2022 ............................................. $ 1,135,000 $10,255,000 $10,255,000 19.01% $11,827,113
2023 ............................................. 1,135,000 8,810,000 19,065,000 35.35% 10,077,612
2024 ............................................. 1,135,000 7,685,000 26,750,000 49.60% 8,682,963
2025 ............................................. 1,135,000 6,630,000 33,380,000 61.89% 7,401,962
2026 ............................................. 1,135,000 5,860,000 39,240,000 72.75% 6,429,900
2027 ............................................. 1,135,000 4,910,000 44,150,000 81.86% 5,290,275
2028 ............................................. 1,135,000 3,865,000 48,015,000 89.02% 4,098,000
2029 ............................................. 1,135,000 2,885,000 50,900,000 94.37% 3,017,150
2030 ............................................. 1,135,000 1,925,000 52,825,000 97.94% 1,985,700
2031 ............................................. 1,110,000 1,110,000 53,935,000 100.00% 1,132,200
Total ........................................... $11,325,000 $53,935,000 $59,942,875
Note: (1) Source: the City.
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City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 4
INDIRECT GENERAL OBLIGATION DEBT
DEBT RATIOS
STATEMENT OF BONDED INDEBTEDNESS(1)(2)
City Actual Value, January 1, 2019 ............................................................................................................................................................. $6,857,898,321
City Taxable Value, January 1, 2019 .......................................................................................................................................................... $4,258,178,148
Per Capita
Applicable Ratio to City Ratio to City (2010 Pop.
Total Percent Amount Actual Value Taxable Value 67,862 )
Direct Bonded Debt ....................................... $ 53,935,000 100.00% $ 53,935,000 0.79% 1.27% $ 794.77
TIF Revenue Debt ......................................... 12,805,000 100.00% 12,805,000 0.19% 0.30% 188.69
Overlapping Debt:
Iowa City Community School District ............. $170,605,000 58.74% $100,213,377 1.46% 2.35% 1,476.72
Clear Creek-Amana Community School Dist. 82,015,000 0.04% 32,806 0.00% 0.00% 0.48
Kirkwood Community College(3) ................... 141,210,000 14.87% 20,997,927 0.31% 0.49% 309.42
Johnson County ............................................ 31,261,000 43.63% 13,639,174 0.20% 0.32% 200.98
Total Applicable Overlapping Bonded Debt ............................................... $134,883,284 1.97% 3.16% $1,987.60
Total Direct and Overlapping Bonded Debt ................................................ $201,623,284 2.95% 4.73% $2,971.06
Per Capita Actual Value ................................................................................................................................................................................ $101,056.53
Per Capita Taxable Value .............................................................................................................................................................................. $ 62,747.61
Notes: (1) Source: the City, Audited Financial Statements and Treasurer of the State of Iowa – Outstanding Obligations Report the County, School
Districts and Community College.
(2) As of June 30, 2021.
(3) Excludes $30,005,000 in Industrial New Jobs Training Certificates, which are expected to be paid by proceeds from anticipated job credits
from withholding taxes.
OTHER OBLIGATIONS
OTHER DEBT
The City has revenue debt payable solely from the net revenues of the City’s Urban Renewal Areas as follows:
Date of Original Final Principal Outstanding
Issue Amount Issued Purpose Maturity As of 6/30/21
Sept.2016 $12,805,000 Developer Grant 6/36 12,805,000
Total $12,805,000
The City has revenue debt payable solely from the net revenues of the Municipal Water System as follows:
Date of Original Final Principal Outstanding
Issue Amount Issued Purpose Maturity As of 6/30/21
June 2012 $ 4,950,000 Water Refunding 7/22 $1,070,000
June 2016 3,650,000 Water Refunding 7/24 2,000,000
June 2017 5,910,000 Water Refunding 7/25 4,000,000
Total $7,070,000
The City has revenue debt payable solely from the net revenues of the Municipal Sewer System as follows:
Date of Original Final Principal Outstanding
Issue Amount Issued Purpose Maturity As of 6/30/21
June 2016 $9,360,000 Sewer Refunding 7/21 $1,825,000
June 2017 4,550,000 Sewer Refunding 7/22 2,920,000
Total $4,745,000
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 5
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, as amended, the State Director of Revenue annually directs all
county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The final
values, called Actual Valuation, are then adjusted by the County Auditor. Taxable Valuation subject to tax levy is then
determined by the application of State determined rollback percentages, principally to residential property.
Beginning in 1978, the State required a reduction in Actual Valuation to reduce the impact of inflation on its residents. The
resulting value is defined as the Taxable Valuation. Such rollback percentages may be changed in future years. Certain
historical rollback percentages for residential, multi-residential, agricultural and commercial valuations are as follows:
PERCENTAGES FOR TAXABLE VALUATION AFTER ROLLBACKS(1)
Multi- Ag Land Commercial
Fiscal Year Residential Residential(2) & Buildings & Industrial
2013/14 ................ 52.8166% N/A 59.9334% 100.0000%
2014/15 ................ 54.4002% N/A 43.3997% 95.0000%
2015/16 ................ 55.7335% N/A 44.7021% 90.0000%
2016/17 ................ 55.6259% 86.2500% 46.1068% 90.0000%
2017/18 ................ 56.9391% 82.5000% 47.4996% 90.0000%
2018/19 ................ 55.6209% 78.7500% 54.4480% 90.0000%
2019/20 ................ 56.9180% 75.0000% 56.1324% 90.0000%
2020/21 ................ 55.0743% 71.2500% 81.4832% 90.0000%
2021/22 ................ 56.4094% 67.5000% 84.0305% 90.0000%
2022/23 ................ 54.1302% 63.7500% 89.0412% 90.0000%
Notes: (1) Source: the Iowa Department of Revenue.
(2) New category beginning with fiscal year 2017, to be phased into
residential category with valuations beginning January 1, 2022, per
House File 418 signed into law on March 8, 2021.
BUILDING PERMITS
City Building Permits(1)
(Excludes the Value of Land)
Calendar
Year: 2017 2018 2019 2020 2021
New Construction
No. of New Permits............................................ 211 151 120 120 159
Valuation: .......................................................... $108,285,647 $115,872,543 $134,485,833 $51,863,761 $ 96,466,791
Remodeling Repair and Additions:
No. of New Permits:........................................... 507 467 484 430 421
Valuation: .......................................................... $108,532,366 $ 76,942,267 $ 97,036,048 $35,438,412 $ 39,023,795
Total Permits ..................................................... 718 618 604 550 580
Total Valuations ................................................. $216,818,013 $192,814,810 $231,521,881 $87,302,173 $135,490,596
Note: (1) Source: the City.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 6
PROPERTY VALUATIONS AND TREND OF VALUATIONS
ACTUAL (100%) VALUATIONS FOR THE CITY(1)(2)
Fiscal Year: 2016/17 2017/18 2018/19 2019/20 2020/21
Property Class Levy Year: 2015 2016 2017 2018 2019
Residential ........................................................ $3,893,541,900 $4,011,317,530 $4,279,194,820 $4,431,104,380 4,995,816,750
Agricultural ........................................................ 3,736,510 3,443,020 2,626,150 2,539,080 1,748,000
Commercial ....................................................... 856,972,664 877,491,737 964,588,039 1,000,704,323 1,104,820,749
Industrial ........................................................... 79,053,598 79,474,988 74,013,639 79,346,989 80,669,700
Multi-residential ................................................. 415,208,021 420,082,751 482,118,763 502,252,347 548,053,873
Railroads ........................................................... 4,096,577 3,984,932 3,549,414 3,601,348 4,488,469
Utilities without Gas and Electric ........................ 7,375,066 6,734,894 7,099,293 7,386,408 6,152,547
Gas and Electric Utility ...................................... 92,987,351 94,582,279 97,050,716 109,124,421 118,583,613
Less: Military Exemption ................................... (2,727,994) (2,635,396) (2,579,836) (2,489,088) (2,435,380)
Total ................................................................ $5,350,243,693 $5,494,476,735 $5,907,660,998 $6,133,570,208 $6,857,898,321
Percent Change +(-) ........................................ 8.07%(3) 2.70% 7.52% 3.82% 11.81%
Notes: (1) Source: Iowa Department of Management.
(2) Includes tax increment finance (TIF) valuations used in the following amounts:
January 1: 2015 2016 2017 2018 2019
TIF Valuation ....................................................... $72,666,677 $80,577,275 $83,379,709 $115,175,495 $89,469,635
(3) Based on 2014 Actual Valuation of $4,950,557,795.
For the January 1, 2019 levy year, the City’s Taxable Valuation was comprised of approximately 65% residential, 23%
commercial, 9% multi-residential, 2% industrial, 1% utilities and less than 1% agriculture and military exemption.
PROPERTY VALUATIONS AND TREND OF VALUATIONS
TAXABLE (“ROLLBACK”) VALUATIONS FOR THE CITY(1)(2)
Fiscal Year: 2016/17 2017/18 2018/19 2019/20 2020/21
Property Class Levy Year: 2015 2016 2017 2018 2019
Residential ........................................................ $2,165,817,742 $2,284,007,603 $2,380,126,625 $2,522,095,595 $2,751,410,912
Agricultural ........................................................ 1,706,955 1,618,090 1,429,547 1,425,151 1,424,328
Commercial ....................................................... 771,275,414 789,742,578 868,129,247 900,633,903 994,338,692
Industrial ........................................................... 71,148,238 71,527,489 66,612,275 71,412,290 72,602,730
Multi-residential ................................................. 358,117,010 346,568,385 379,668,606 376,689,677 390,488,458
Railroads ........................................................... 3,686,919 3,586,439 3,194,473 3,241,213 4,039,622
Utilities without Gas and Electric ........................ 7,375,066 6,734,894 7,099,293 7,386,408 6,152,547
Gas and Electric Utility ...................................... 44,986,783 41,702,196 41,797,475 42,719,065 40,156,239
Less: Military Exemption ................................... (2,727,994) (2,635,396) (2,579,836) (2,489,088) (2,435,380)
Total ................................................................ $3,421,386,133 $3,542,852,278 $3,745,477,705 $3,923,114,214 $4,258,178,148
Percent Change +(-) ........................................ 7.50%(3) 3.55% 5.72% 4.74% 8.54%
Notes: (1) Source: Iowa Department of Management.
(2) Includes tax increment finance (TIF) valuations used in the following amounts:
January 1: 2015 2016 2017 2018 2019
TIF Valuation ....................................................... $72,650,838 $80,559,947 $85,379,369 $115,175,495 $84,077,937
(3) Based on 2014 Taxable Valuation of $3,182,641,961.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 7
LEVIES AND TAX COLLECTIONS(1)
(Amounts Expressed in Thousands)
The following shows the trend in the City’s tax extensions and collections.
Levy Fiscal Amount Amount Percent
Year Year Levied Collected(2) Collected
2010 ................. 2011-12 ................ $49,595 $49,544 99.90%
2011 ................. 2012-13 ................ 50,407 50,142 99.47%
2012 ................. 2013-14 ................ 50,307 49,836 99.06%
2013 ................. 2014-15 ................ 51,609 51,295 97.16%
2014 ................. 2015-16 ................ 52,034 52,074 100.08%
2015 ................. 2016-17 ................ 55,330 55,331 100.00%
2016 ................. 2017-18 ................ 56,458 56,347 99.80%
2017 ................. 2018-19 ................ 59,174 59,254 100.14%
2018 ................. 2019-20 ................ 60,297 58,972 97.80%
2019 ................. 2020-21 ................ 65,849 66,714 101.31%
Notes: (1) Source: the State of Iowa Department of Management and the City. Does
not include Levies or Collections for Utility Replacement. Does not include
levies and collections for the City’s tax increment finance district.
(2) Includes delinquent taxes.
LARGER TAXPAYERS(1)
Taxpayer Name Business/Service Taxable Valuation(2)
American College Testing, Inc (aka ACT, Inc.) .............. Commercial Property ................................................... $ 45,139,688
MidAmerican Energy ..................................................... Utility ........................................................................... 36,567,690
Rise at Riverfront Crossings, LLC .................................. Apartments .................................................................. 30,679,064
BBCS-Hawkeye Housing LLC ....................................... Real Estate Management/Apartments.......................... 27,628,800
MidWestOne Bank ......................................................... Financial Institution ...................................................... 24,040,503
Tailwind Iowa City, LLC ................................................. Real Estate Development ............................................ 23,429,721
Dealer Properties IC LLC ............................................... Commercial Property ................................................... 20,522,421
Graduate Iowa City Owner, LLC .................................... Hotel ............................................................................ 20,475,612
Riverfront Crossing Hospitality Owners LLC .................. Commercial Property ................................................... 17,779,671
Procter & Gamble LLC ................................................... Industrial Property ........................................................ 16,764,588
Total ................................................................................................................................................................. $263,027,758
Ten Larger Taxpayers as Percent of City’s January 1, 2019 Taxable Valuation ($4,258,178,148) .................... 6.18%
Notes: (1) Source: the County.
(2) Every effort has been made to seek out and report the larger taxpayers. However, many of the taxpayers listed
contain multiple parcels and it is possible that some parcels and their valuations have been overlooked.
LEVY LIMITS
Normal municipal operations and maintenance costs are generally funded through the corporate property tax levy.
Iowa State Code does not allow the municipal general fund to be taxed above $8.10 per thousand dollars of taxable value
in any one year. In addition to the General Fund, there are several other tax funds that the City can create and use for
specific purposes.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 8
TAX RATES
Levy Years 2015 - 2019(1)(2)
(Per $1,000 Actual Valuation)
Fiscal Year: 2016/17 2017/18 2018/19 2019/20 2020/21
Levy Year: 2015 2016 2017 2018 2019
City:
General Fund ..................................................... $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000 $ 8.10000
Emergency Levy ................................................. 0.00000 0.00000 0.00000 0.00000 0.24000
Debt Service Fund .............................................. 3.82846 3.57846 3.22846 2.97846 2.57846
Employee Benefits ............................................. 3.14415 3.14415 3.34415 3.24415 3.34415
Capital Improvement .......................................... 0.00000 0.00000 0.00000 0.00000 0.00000
Other .................................................................. 1.51044 1.51044 1.51044 1.51044 1.51044
Total City .......................................................... $16.58305 $16.33305 $16.18305 $15.83305 $15.77305
Johnson County ................................................. $ 6.77140 $ 6.85143 $ 6.53594 $ 6.49278 $ 6.34581
Iowa City Community School District .................. 13.98935 13.95855 14.85629 14.79097 14.83935
Kirkwood ............................................................ 1.08048 1.13174 1.20354 1.21331 1.25730
Other .................................................................. 0.32450 0.33036 0.30557 0.27066 0.33110
Total Tax Rate(3) ............................................. $38.74878 $38.60513 $39.08439 $38.60077 $38.54661
Notes: (1) Source: Iowa Department of Management.
(2) Does not include the tax rate for agriculture.
(3) Taxpayers in the Iowa City Community School District area.
PROPERTY TAX LEGISLATION
From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if
enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what
forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that
such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have an adverse
impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax advisors regarding any
pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel are based upon existing
legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has expressed no opinion as of any date
subsequent thereto or with respect to any pending federal or state tax legislation.
During the 2019 legislative session, the Iowa General Assembly enacted Senate File 634 (the “2019 Act”). This bill
modifies the process for hearing and approval of the total maximum property tax dollars under certain levies in the county
budget. The bill also includes a provision that will require the affirmative vote of 2/3 of the City Council when the maximum
property tax dollars under these levies exceed an amount determined under a prescribed formula.
The 2019 Act does not change the process for hearing and approval of the Debt Service Levy pledged for repayment
of the Bonds. It is too early to evaluate the affect the 2019 Act will have on the overall financial position of the City or its
ability to fund essential services.
During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the “2013 Act”). Among
other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential
and agricultural property to 3%, (ii) assigned a “rollback” (the percentage of a property’s value that is subject to tax) to
commercial, industrial and railroad property of 90%, (iii) created a new property tax classification for multi-residential
properties (apartments, nursing homes, assisted living facilities and certain other rental property) and assigned a declining
rollback percentage to such properties for each year until the residential rollback percentage is reached in the 2022
assessment year, after which the rollback percentage for such properties will be equal to the residential rollback percentage
each assessment year, and (iv) exempted a specified portion of the assessed value of telecommunication properties.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 9
During the 2021 Iowa Legislative session, House File 418 was signed into law on March 8, 2021, applicable to
valuations beginning January 1, 2022 (the “2021 Act”). HF418 removes the multi-residential property classification by
reclassifying certain properties as subdivision of “residential” property. The multi-residential classification was created as
part of the January 1, 2015 valuations, and became unnecessary due to the equalization of the residential and multi-
residential classifications as of January 1, 2022.
The 2013 Act included a standing appropriation to replace some of the tax revenues lost by local governments due
to the rollback. Iowa Code section 441.21A established this standing appropriation for reimbursement to local governments
(backfill). However, SF 619, passed by the legislature on May 19, 2021 and subsequently signed into law by Governor
Reynolds, phases out backfill payments beginning with fiscal years beginning on or after July 1, 2022. For cities and
counties, the backfill is eliminated through annual reductions over five or eight years, depending on assessed valuation
growth from 2012 to 2019. School district backfill payments will be eliminated after fiscal year 2022. Taxing authorities
that are not schools, cities, or counties will have their backfill payments phased out over eight years. SF 619 also implements
a tax credit for property owned by persons who are at least 70 years of age and whose annual household income is not more
than 250% of the federal poverty level guidelines published by the U.S. Department of Health and Human Services. The
expanded credit is available for claims filed on or after January 1, 2022. The expanded credit is exempt from the provisions
of Iowa Code section 25B.7(1), which imposes a State requirement to fully fund changes to property tax credits. The
legislation is anticipated to result in reduced property tax revenues as a result of the phased out property tax replacement
claims and also due to expansion of the Elderly Property Tax Credit.
Notwithstanding any decrease in property tax revenues that may result from the 2013 Act, the 2019 Act or the 2021
Act or Senate File 619, the Bonds are secured by an unlimited ad valorem property tax as described more fully in the
“SECURITY AND SOURCE OF PAYMENT” herein.
From time to time, other legislative proposals may be considered by the Iowa General Assembly that would, if
enacted, alter or amend one or more of the property tax matters described in this Official Statement. It cannot be predicted
whether or in what forms any of such proposals may be enacted, and there can be no assurance that such proposals will not
apply to valuation, assessment or levy procedures for the levy of taxes by the City.
CITY FUNDS ON HAND (Cash and Investments as of June 30, 2021, in thousands)
City Operating Funds $196,741
City Restricted Funds 53,725
Total $250,466
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City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 10
STATEMENT OF NET POSITION
GOVERNMENTAL ACTIVITIES(1)
(Amounts Expressed in Thousands)
Audited as of June 30
2017 2018 2019 2020 2021
Assets:
Equity in Pooled Cash and Investments .................................... $111,030 $109,860 $111,645 $113,883 $130,934
Receivables:
Property Tax ............................................................................ 56,639 59,538 60,529 66,479 67,644
Accounts and Unbilled Usage .................................................. 820 817 941 707 1,002
Interest .................................................................................... 428 920 967 547 76
Notes ....................................................................................... 5,524 5,304 5,209 5,300 5,141
Internal Balances ....................................................................... (15,494) (16,069) (20,055) (22,551) (24,229)
Due from Other Governments.................................................... 4,519 4,067 7,584 7,125 5,651
Prepaids and Other Assets ........................................................ 811 810 907 13 0
Inventories ................................................................................. 730 602 650 793 786
Assets Held for Resale .............................................................. 750 562 689 480 400
Restricted Assets:
Equity in Pooled Cash and Investments................................... 24,560 26,108 18,553 19,743 25,056
Other Post Employment Benefits Asset ..................................... 35 0 0 0 0
Capital Assets:
Land and Construction in Progress .......................................... 52,545 73,176 51,291 41,160 38,054
Other Capital Assets (Net of Accumulated Depreciation) ......... 173,598 174,835 210,302 232,717 240,561
Total Assets ......................................................................... $416,495 $440,530 $449,212 $466,396 $491,076
Deferred Outflows of Resources:
Pension Related Deferred Outflows ........................................... $ 13,131 $ 11,477 $ 11,255 $ 10,119 $ 12,833
OPEB Related Deferred Outflows .............................................. 0 637 1,467 1,302 1,628
Total Deferred Outflows of Resources ................................... $ 13,131 $ 12,114 $ 12,722 $ 11,421 $ 14,461
Liabilities:
Accounts Payable ...................................................................... $ 2,127 $ 5,168 $ 3,399 $ 3,494 $ 2,913
Contracts Payable ..................................................................... 2,521 3,663 5,864 3,725 2,840
Accrued Liabilities ..................................................................... 4,182 4,193 5,231 5,558 5,958
Interest Payable ........................................................................ 133 134 151 158 163
Deposits .................................................................................... 1,230 952 1,008 1,222 1,124
Advances from Grantors ............................................................ 144 124 98 3 9,470
Due to Other Governments ........................................................ 42 29 31 38 45
Notes Payable ........................................................................... 663 475 602 0 0
Noncurrent Liabilities:
Due Within One Year:
Employee Vested Benefits ..................................................... 1,252 1,253 1,308 1,525 1,546
Bonds Payable ...................................................................... 8,230 9,612 11,534 11,119 11,536
Due in More Than One Year:
Employee Vested Benefits ..................................................... 989 987 1,012 1,206 1,204
Net Pension Liability .............................................................. 39,080 38,867 38,890 39,796 47,299
Other Post Employment Benefits Liability .............................. 3,660 5,472 6,401 6,253 7,030
Notes Payable ....................................................................... 211 211 211 211 211
Bonds Payable ...................................................................... 59,509 58,307 56,771 58,653 57,931
Total Liabilities ..................................................................... $123,973 $129,447 $132,511 $132,961 $149,270
Deferred Inflows of Resources:
Pension Related Deferred Inflows............................................ $ 1,603 $ 1,565 $ 1,940 $ 3,045 $ 1,253
OPEB Related Deferred Inflows .............................................. 0 246 216 560 492
Succeeding Year Property Taxes ............................................ 56,459 59,173 60,296 65,850 66,912
Total Deferred Inflows of Resources .................................... $ 58,062 $ 60,984 $ 62,452 $ 69,455 $ 68,657
(continued on following page)
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 11
STATEMENT OF NET POSITION
GOVERNMENTAL ACTIVITIES(1)
(Amounts Expressed in Thousands)
(continued)
Audited as of June 30
2017 2018 2019 2020 2021
Net Position:
Net Investment in Capital Assets ............................................... $183,651 $203,077 $208,028 $220,004 $228,418
Restricted for or by:
Employee Benefits................................................................... 2,810 3,119 4,249 3,875 3,973
Capital Projects:
Expendable(2) ....................................................................... 30,856 21,463 17,020 11,464 12,266
Nonexpendable(2) ................................................................. 0 0 0 278 218
Debt Service ............................................................................ 7,221 8,423 9,514 9,590 7,388
Police ...................................................................................... 349 283 214 294 271
Other Purposes
Expendable ........................................................................... 2,590 4,469 4,359 4,552 6,300
Nonexpendable ..................................................................... 0 0 0 69 69
Grant Agreement ..................................................................... 3,850 3,733 3,463 3,456 3,179
Unrestricted ............................................................................... 16,264 17,646 20,124 21,819 25,528
Total Net Position ................................................................ $247,591 $262,213 $266,971 $275,401 $287,610
Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2017 through 2021.
(2) For fiscal years 2017 – 2019 amount is classified as expendable.
STATEMENT OF ACTIVITIES
GOVERNMENTAL ACTIVITIES(1)
(Amounts Expressed in Thousands)
Audited for the Year Ended June 30
2017 2018 2019 2020 2021
Function/Programs:
Governmental Activities:
Public Safety ........................................................................... $ (18,053) $ (20,466) $ (20,862) $ (22,728) $ (25,853)
Public Works ........................................................................... 6,746 (3,084) (2,516) (4,737) (2,958)
Culture and Recreation ............................................................ (14,573) (15,189) (14,834) (15,451) (15,442)
Community and Economic Development ................................. (6,264) (10,166) (14,116) (7,760) (4,792)
General Government ............................................................... (4,600) (5,338) (5,807) (6,137) (8,757)
Interest on Long-Term Debt ..................................................... (1,481) (1,414) (1,444) (1,452) (1,561)
Total Governmental Activities ................................................ $ (38,225) $ (55,657) $ (59,579) $ (58,265) $ (59,363)
General Revenues:
Property Taxes, Levied for General Purposes ......................... $ 57,649 $ 59,046 $ 61,739 $ 62,846 $ 69,482
Hotel/Motel Tax ....................................................................... 1,137 1,046 1,302 1,135 938
Gas and Electric Tax ............................................................... 726 684 668 677 644
Utility Franchise Tax ................................................................ 939 976 965 884 994
Grants and Contributions Not Restricted to Specific Purposes . 1,583 1,547 1,552 1,513 1,587
Earnings on Investments ......................................................... 1,397 2,368 3,257 2,585 841
Gain on Disposal of Capital Assets .......................................... 2,151 140 186 111 213
Miscellaneous.......................................................................... 3,369 3,656 3,329 3,331 3,030
Transfers ................................................................................... (7,053) 1,814 (8,661) (6,387) (6,157)
Total General Revenues and Transfers ................................. $ 61,898 $ 71,277 $ 64,337 $ 66,695 $ 71,572
Changes in Net Position ...................................................... $ 23,673 $ 15,620 $ 4,758 $ 8,430 $ 12,209
Net Position Beginning of Year .................................................. 223,918 246,593(2) 262,213 266,971 275,401
Net Position End of Year ........................................................... $247,591 $262,213 $266,971 $275,401 $287,610
Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2017 through 2021.
(2) Restated.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 12
BALANCE SHEET
GENERAL FUND(1)
(Amounts Expressed in Thousands)
Audited as of June 30
2017 2018 2019 2020 2021
Assets:
Equity in Pooled Cash and Investments .................................... $32,500 $36,321 $38,979 $42,371 $51,870
Receivables:
Property Taxes ........................................................................ 32,965 34,973 36,301 40,081 40,959
Accounts and Unbilled Usage .................................................. 410 496 491 355 508
Interest .................................................................................... 161 276 360 163 24
Notes ....................................................................................... 1,292 1,276 1,329 1,252 1,073
Due from Other Funds ............................................................... 0 0 0 299 174
Advances to Other Funds .......................................................... 0 0 56 0 0
Due from Other Governments.................................................... 1,887 1,941 2,131 3,661 2,080
Prepaid Item .............................................................................. 719 726 818 13 0
Assets Held for Resale .............................................................. 750 562 689 480 400
Restricted Assets:
Equity in Pooled Cash and Investments................................... 10,268 1,904 2,028 2,209 2,134
Total Assets ....................................................................... $80,952 $78,475 $83,182 $90,884 $99,222
Liabilities, Deferred Inflows of Resources and Fund Balances:
Liabilities:
Accounts Payable .................................................................... $ 1,191 $ 1,492 $ 1,497 $ 1,356 $ 1,672
Accrued Liabilities.................................................................... 1,321 1,391 1,466 1,673 1,957
Due to Other Governments ...................................................... 38 29 31 38 38
Interest Payable ...................................................................... 4 5 17 0 0
Notes Payable ......................................................................... 663 475 602 0 0
Liabilities Payable from Restricted Assets:
Deposits ............................................................................... 1,224 947 1,004 1,217 1,115
Advances from Grantors ....................................................... 7 113 94 0 19
Total Liabilities ................................................................... $ 4,448 $ 4,452 $ 4,711 $ 4,284 $ 4,801
Deferred Inflows of Resources:
Unavailable Revenues:
Succeeding Year Property Taxes .......................................... $32,863 $34,764 $36,176 $39,720 $40,568
Grants ................................................................................... 6 9 34 1,791 4
Other ..................................................................................... 1,539 1,600 1,643 1,716 1,628
Total Deferred Inflows of Resources .................................... $34,408 $36,373 $37,853 $43,227 $42,200
Fund Balances:
Nonspendable ......................................................................... $ 788 $ 793 $ 887 $ 549 $ 469
Restricted ................................................................................ 9,974 1,942 1,808 1,747 1,455
Committed ............................................................................... 5,199 4,962 0 0 0
Assigned ................................................................................. 1,342 1,437 3,565 5,708 9,883
Unassigned ............................................................................. 24,793 28,516 34,358 35,369 40,414
Total Fund Balances .......................................................... $42,096 $37,650 $40,618 $43,373 $52,221
Total Liabilities, Deferred Inflows of Resources
and Fund Balances .......................................................... $80,952 $78,475 $83,182 $90,884 $99,222
Note: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2017 through 2021.
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City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 13
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND(1)
(Amounts Expressed in Thousands)
Audited Fiscal Year Ended June 30
2017 2018 2019 2020 2021
Revenues:
Taxes ........................................................................................ $ 34,290 $ 35,363 $37,426 $38,087 $42,635
Licenses and Permits ................................................................ 3,521 2,734 2,981 2,352 2,541
Intergovernmental ..................................................................... 3,574 3,786 4,099 4,009 5,924
Charges for Service ................................................................... 1,665 1,465 1,595 1,113 808
Fines and Forfeits ...................................................................... 750 695 776 609 375
Use of Money and Property ....................................................... 839 1,164 1,599 1,102 456
Miscellaneous............................................................................ 1,692 1,878 1,950 2,031 1,688
Total Revenues ....................................................................... $ 46,331 $ 47,085 $50,426 $49,303 $54,427
Expenditures:
Current:
Public Safety ........................................................................... $ 22,005 $ 22,762 $23,858 $24,611 $24,764
Public Works ........................................................................... 1,803 1,871 1,922 2,219 2,076
Cultural and Recreation ........................................................... 12,890 13,099 13,096 13,146 12,407
Community and Economic Development ................................. 3,074 2,785 3,561 3,678 3,487
General Government ............................................................... 5,471 5,550 6,144 6,336 6,676
Capital Outlay ............................................................................ 1,463 2,124 1,718 2,088 1,828
Total Expenditures................................................................... $ 46,706 $ 48,191 $50,299 $52,078 $51,238
Excess (Deficiency) of Revenues Over (Under) Expenditures ... $ (375) $ (1,106) $ 127 $ (2,775) $ 3,189
Other Financing Sources (Uses):
Issuance of Debt ....................................................................... $ 0 $ 17 $ 0 $ 0 $ 0
Sale of Capital Assets ............................................................... 268 140 758 111 233
Transfers In ............................................................................... 10,725 10,138 11,548 12,578 12,567
Transfers Out ............................................................................ (18,023) (13,635) (9,465) (7,159) (7,141)
Total Other Financing Sources and (Uses) .............................. $ (7,030) $ (3,340) $ 2,841 $ 5,530 $ 5,659
Net Change in Fund Balances ................................................... $ (7,405) $ (4,446) $ 2,968 $ 2,755 $ 8,848
Fund Balances, Beginning ........................................................ $ 49,501(2) $ 42,096 $37,650 $40,618 $43,373
Fund Balances, Ending ............................................................. $ 42,096 $ 37,650 $40,618 $43,373 $52,221
Notes: (1) Source: Audited financial statements of the City for the fiscal years ended June 30, 2017 through 2021.
(2) Restated.
PENSIONS
The City participates in two public pension systems, Iowa Public Employee’s Retirement System (IPERS) and
Municipal Fire and Police Retirement System of Iowa (MFPRSI).
In fiscal year 2021, pursuant to the IPERS’ required rate, the City’s Regular employees (members) contributed 6.29%
of covered payroll and the City contributed 9.44% of covered payroll, for a total rate of 15.73%. The City’s contributions to
IPERS for the year ended June 30, 2021 were $3,025,270. The City’s share of the contributions, payable from the applicable
funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount.
The City has always made its full required contributions to IPERS.
At June 30, 2021, the City reported a liability of $27,731,863 for its proportionate share of the IPERS 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 discount rate used to measure the total pension
liability was 7%. The City’s proportion of the net pension liability was based on the City’s share of contributions to the
pension plan relative to the contributions of all IPERS participating employers.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 14
In fiscal year 2021, pursuant to the MFPRSI’s required rate, the City’s employees (members) contributed 9.40% of
covered payroll and the City contributed 25.31% of covered payroll, for a total rate of 34.71%. The City’s contribution to
MFPRSI for year ended June 30, 2021 was $2,902,637. The City’s share of the contributions, payable from the applicable
funds of the City, is provided by a statutorily authorized annual levy of taxes without limit or restriction as to rate or amount.
The City has always made its full required contributions to MFPRSI.
At June 30, 2021, the City reported a liability of $28,881,737 for its proportionate share of the MFPRSI 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 discount rate used to measure the total pension
liability was 7.5%. The City’s proportion of the net pension liability was based on the City’s share of contributions to the
pension plan relative to the contributions of all MFPRSI participating employers.
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
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.
The following table shows the City’s 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
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City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 15
FINANCIAL AND OPERATING REPORT
FOR THE FISCAL YEAR JUNE 30, 2021
Relating to
CITY OF IOWA CITY
Johnson County, Iowa
WATER SYSTEM REVENUE
BASE CUSIP NO. 462380
and
SEWER SYSTEM REVENUE
BASE CUSIP NO. 462362
To the extent not included in the City’s Financial Statements, all information the City of Iowa City has agreed to
provide in its annual reports, as it relates to its outstanding water revenue, sewer revenue and urban renewal revenue
debt is included in this report. Attached is additional information as required to be submitted under previous
disclosure undertakings of the City.
Pursuant to Securities and Exchange Commission Rule 15c2-12
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 16
WATER SYSTEM
The Water Division is comprised of five parts: Administration, Treatment Plant, Customer Service, Distribution, and Public
Information/Education. There are a total of 31.25 (FTE) employees who work in the Water Division. This division serves
about 73,998 people and has over 26,951 customer water accounts. The average daily use for fiscal year 2021 was
approximately 5.5 million gallons per day (MGD). A peak flow of over 8.6 MGD was experienced during the summer of
2012.
Water Sources: The primary source of water for the City is the alluvial aquifer collector wells along the Iowa River. Four
collector wells can provide approximately 10.5 MGD. Additional sources include one Jordan aquifer wells which can
provide 1.0 MGD; three Silurian aquifer wells which can provide 1.0 MGD; a sand pit that can provide 1.0 MGD; a river
intake that can provide 3.0 MGD; for a total of approximately 16.7 MGD maximum capacity.
Water Treatment Processes: The facilities include one treatment plant (constructed in 2003) located at 80 Stephen Atkins
Drive. The plant is a surface water plant design that includes aeration, lime softening
(coagulation/flocculation/sedimentation), and granular activated carbon filtration processes with fluoridation and free
chlorination. The Grade IV Water Treatment Facility houses an operations team that performs over 230 water quality tests
per day in-house and collects regulatory samples for testing at the University Hygienic Laboratory. This testing ensures
that Iowa City’s drinking water meets all IDNR and EPA Safe Drinking Water Act Standards.
Distribution System: The water flows through approximately 283 miles of water mains and includes over 28,100 service
connections. The distribution piping consists of cast iron, ductile iron and plastic main that ranges in size from 2” to 30”.
The treatment plant site has effective water storage capacity of 1.75 million gallons of water; in addition, there are four
remote ground storage reservoirs (with pumping stations) that add up to remote effective storage capacity of 6.0 million
gallons of water. The water system also provides for fire protection with approximately 3,730 public and private hydrants
located throughout the community.
Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer,
water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received
but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice
is mailed which allows 25 calendar days before service is disconnected. The City’s bad debt write-offs have been less than
0.2% of gross revenues for the past three years.
WATER SYSTEM RATES AND CHARGES
The following rates and charges were effective July 1, 2020.
Water Service Charge Minimums(1)
(Includes up to the first 100 cubic feet (c.f.))
Meter Size Meter Size
(Inches) Charge (Inches) Charge
5/8" ..................... $ 7.79 2" ................... $ 26.91
3/4" ..................... 8.52 3" ................... 49.74
1" ....................... 10.04 4" ................... 86.75
1-1/2" .................... 20.01 6" ................... 174.56
Note: (1) Source: the City.
Monthly Usage in excess of 100 Cubic Feet (c.f.)(1)
101 c.f. - 3,000 c.f. .................. $3.64 per 100 c.f.
3,001 c.f. and over .................. $2.61 per 100 c.f.
Note: (1) Source: the City
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 17
Single Purpose Meter Charges(1)
First 100 c.f. ........................................ Minimum Monthly Charge
Usage in excess of 100 c.f. .................. $3.64 per 100 c.f.
Note: (1) Source: the City.
Changes in water rates over the last ten fiscal years:
Water Rate Changes(1)
Fiscal Rate
Year Change
2012 .................................................... 0%
2013 .................................................... 0%
2014 .................................................... 0%
2015 .................................................... 5%
2016 .................................................... 5%
2017 .................................................... 0%
2018 .................................................... 0%
2019 .................................................... 0%
2020 .................................................... 5%
2021 .................................................... 0%
Note: (1) Source: the City.
SALES HISTORY AND WATER SYSTEM CHARGES(1)
Fiscal Water Sales Water System
Year Cubic Feet Sold(2) Charges
2012 ................................... 246,618,257 .............................. $ 7,953,738
2013 ................................... 254,616,773 .............................. 8,194,467
2014 ................................... 239,790,719 .............................. 7,778,364
2015 ................................... 240,423,612 .............................. 8,161,522
2016 ................................... 255,524,943 .............................. 8,758,683
2017 ................................... 267,511,531 .............................. 9,156,005
2018 ................................... 293,046,636 .............................. 9,953,510
2019 ................................... 289,055,329 .............................. 10,139,587
2020 ................................... 285,102,926 .............................. 10,705,168
2021 ................................... 237,035,139 .............................. 9,459,987
Notes: (1) Source: the City.
(2) Beginning in March 2015 the amounts include unbilled usage.
WATER SYSTEM CUSTOMERS BY CLASSIFICATION(1)(2)
Classification FY2017 FY2018 FY2019 FY2020 FY2021
Residential ............................. 25,971 26,432 26,681 27,080 27,266
Commercial ........................... 1,487 1,494 1,493 1,496 1,489
Industrial ................................ 15 16 15 15 15
Other(3) ................................. 199 199 202 203 195
Total Meters ......................... 27,672 28,141 28,391 28,794 28,965
Notes: (1) Source: the City.
(2) Represents the number of meters customers billed as of the end of the fiscal year includes dual purpose
and single purpose meters.
(3) Other meters consist of rural, schools, government, churches, and City meters.
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 18
LARGER WATER SYSTEM CUSTOMERS(1)
Fiscal Year 2021
Customer Name Charges Rank Percentage
Proctor & Gamble .................................................... $ 739,049 1 7.81%
Veterans Administration Medical Center .................. 100,143 2 1.06%
Mercy Hospital ......................................................... 78,892 3 0.83%
Campus Apartments ................................................ 73,955 4 0.78%
Tailwind Iowa City LLC ............................................ 63,774 5 0.67%
Dominium JIT Srv .................................................... 60,226 6 0.64%
Oaknoll Retirement Residence ................................. 43,145 7 0.46%
Seville Apartments ................................................... 39,597 8 0.42%
Emerald Court Apartments ....................................... 37,789 9 0.40%
Rise at Riverfront Crossing ...................................... 33,922 10 0.36%
Total ...................................................................... $1,270,492 13.43%
Total Water System Customers $9,459,987
Note: (1) Source: the City.
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City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 19
SEWER SYSTEM
The City of Iowa City operates a municipal Sewer Utility System consisting of approximately 310+ miles of sanitary sewers,
17 sanitary sewer lift stations, and a wastewater treatment plant. There are a total of 26.00 (FTE) employees who work in
the Wastewater Division, 3 in Administration, 5 in Operations, 6 in Collections, 10 in Maintenance and 2 in the Laboratory.
This division serves approximately 74,828 people and has approximately 27,000 customers. The system has 3 significant
industrial users, 2 non-categorical and 1 categorical. The average daily treatment plant flow for fiscal year 2021 was 7.9
million gallons per day (MGD).
The Wastewater Plant was constructed in 1990. The plant was upgraded in 2002 and underwent another expansion in 2014.
The City conducts all wastewater treatment at the Wastewater Treatment Plant and monitors and controls operations of the
system through process ad permit required sampling and remotely through supervisory control and data acquisition
(SCADA) computer systems. The wastewater treatment system design has a maximum daily treatment capacity of 43.30
MGD. The Wastewater Treatment Division is currently under a consent decree for violation of our Zinc discharge limit.
There was a capture rate miscalculation that was corrected resulting in changes to industrial user permitted limits. Now
corrected, we are in compliance with federal clean water standards and will be requesting the order to be dismissed at the
end of the 2nd quarter 2022.
Billing and Collections: Customers are billed monthly on a combined utility statement which includes charges for sewer,
water, solid waste, and curbside recycling. Under present City policy and City ordinances, utility bills are due when received
but contain a delinquency date which provides 15 days for payment. If payment is not made in full within 22 days, a notice
is mailed which allows 25 calendar days before service is disconnected. The City’s bad debt write-offs have been less than
0.2% of gross revenues for the past three years.
SEWER SYSTEM RATES AND CHARGES
The following Sewer System rates and charges were effective July 1, 2015:
Monthly Sewer Service Charge Minimum (includes up to the first 100 cubic feet (c.f.)) $8.15
Monthly Usage in excess of 100 cubic feet (c.f.) $3.99
The following table shows historical rate increases over the last ten fiscal years.
Sewer Rate Increases(1)
Fiscal Year Rate Change
2012 .................................................... 0%
2013 .................................................... 0%
2014 .................................................... 0%
2015 .................................................... 0%
2016 .................................................... 0%
2017 .................................................... 0%
2018 .................................................... 0%
2019 .................................................... 0%
2020 .................................................... 0%
2021 .................................................... 0%
City of Iowa City, Johnson County, Iowa
Fiscal Year 2021 Annual Financial and Operating Disclosure
Page | 20
SALES HISTORY AND SEWER SYSTEM CHARGES(1)
Fiscal Sewer Sales Sewer System
Year Cubic Feet Sold(2) Charges
2012 ..................................... 282,134,840 $12,784,321
2013 ..................................... 285,472,392 12,883,641
2014 ..................................... 269,494,125 12,382,031
2015 ..................................... 266,830,947 12,278,153
2016 ..................................... 270,547,701 12,022,203
2017 ..................................... 277,712,785 12,404,360
2018 ..................................... 283,246,320 12,524,540
2019 ..................................... 288,537,266 12,822,250
2020 ..................................... 279,106,456 12,503,764
2021 ..................................... 265,605,446 11,819,500
Notes: (1) Source: the City.
(2) Beginning in March 2015 the amount includes unbilled usage in totals.
NUMBER OF SEWER SYSTEM CUSTOMERS(1)
Fiscal Number of Sewer
Year System Customers
2012 .................................................. 23,529
2013 .................................................. 24,059
2014 .................................................. 24,389
2015 .................................................. 24,533
2016 .................................................. 25,085
2017 .................................................. 25,485
2018 .................................................. 26,049
2019 .................................................. 26,201
2020 .................................................. 26,596
2021 .................................................. 26,965
Note: (1) Source: the City.
LARGER SEWER SYSTEM CUSTOMERS(1)
Fiscal Year 2021
Customer Name Charges Rank Percentage
University of Iowa .......................................................... $ 1,729,679 1 14.63%
Proctor & Gamble .......................................................... 918,828 2 7.77%
Iowa City Landfill ............................................................ 115,947 3 0.98%
Veterans Administration Medical Center ........................ 99,127 4 0.84%
Mercy Hospital ............................................................... 97,216 5 0.82%
Campus Apartments ...................................................... 83,604 6 0.71%
Dominium JIT Srv .......................................................... 67,983 7 0.58%
Tailwind Iowa City LLC .................................................. 65,641 8 0.56%
Oaknoll Retirement Residence ....................................... 55,115 9 0.47%
Seville Apartments ......................................................... 49,030 10 0.41%
Total ............................................................................ $ 3,282,170 27.77%
Total Sewer System Customers ..................................... $11,819,500
Note: (1) Source: the City.