HomeMy WebLinkAboutFY2023 Annual Financial ReportCITY OF IOWA CITY, IOWA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
Cats at the Iowa City Animal Care and
Adoption Center enjoy fresh air on the new
“catio,” completed December 2022.
Annual Comprehensive
Financial Report
City of Iowa City, Iowa
For the fiscal year ended June 30, 2023
Prepared by:
Finance Department
City of Iowa City, Iowa
Introductory
Section
Tab
City of Iowa City, Iowa
Table of Contents
June 30, 2023
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………………………………………………………………………… 82
Budgetary comparison schedule – budget to GAAP reconciliation …………………………….. 84
Note to required supplementary information – budgetary reporting…………………………….. 85
Schedule of the City’s proportionate share of MFPRSI net pension liability…………………… 86
Schedule of City’s MFPRSI contributions………………………………………………………. 88
Notes to required supplementary information – MFPRSI pension liability……………………... 90
Schedule of the City’s proportionate share of IPERS net pension liability…………………… .. 92
Schedule of City’s IPERS contributions……………………………………………………….... 94
Notes to required supplementary information – IPERS pension liability……………………….. 96
Required supplementary information – schedule of changes in the City’s total OPEB liability,
related ratios and notes…………………….……………………………………..…….……… 97
Combining Fund Statements
Combining balance sheet – nonmajor governmental funds ............................................................ 100
Combining statement of revenues, expenditures, and changes in fund balances – nonmajor
governmental funds ...................................................................................................................... 101
Combining statement of net position – nonmajor enterprise funds ................................................ 104
Combining statement of revenues, expenses, and changes in fund net position – nonmajor
enterprise funds ............................................................................................................................ 105
Combining statement of cash flows – nonmajor enterprise funds .................................................. 106
Combining statement of net position – internal service funds ........................................................ 108
1
City of Iowa City, Iowa
Table of Contents
June 30, 2023
Page
Combining Fund Statements (continued)
Combining statement of revenues, expenses, and changes in fund net position – internal
service fund ............................................................................................................................ 109
Combining statement of cash flows – internal service funds .................................................... 110
Statistical Section (Unaudited)
Net position by component ........................................................................................................... 113
Changes in net position ................................................................................................................ 114
Fund balances – governmental funds ........................................................................................... 116
Changes in fund balances – governmental funds ......................................................................... 117
General government tax revenues by source ................................................................................ 118
Assessed and taxable value of property ........................................................................................ 119
Property tax rates – direct and overlapping governments ............................................................ 120
Levies and collections .................................................................................................................. 121
Principal taxpayers ....................................................................................................................... 122
Larger water system customers .................................................................................................... 124
Sales history and water system charges ........................................................................................ 125
Larger sewer system customers .................................................................................................... 126
Sales history and sewer system charges ....................................................................................... 127
Ratios of outstanding debt by type ............................................................................................... 128
Ratios of general obligation bonded debt to assessed value and net bonded debt per capita ....... 129
Computation of direct and overlapping debt ................................................................................ 130
Legal debt margin information ..................................................................................................... 131
Schedule of revenue bond coverage ............................................................................................. 132
Schedule of TIF revenue bond coverage ...................................................................................... 133
Demographic and economic statistics .......................................................................................... 134
Principal employers ...................................................................................................................... 135
Full-time equivalent city government employees by function ..................................................... 136
Operating indicators by function .................................................................................................. 137
Capital assets by function ............................................................................................................. 138
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 ....................................................................................................................... 139
Independent auditor’s report on compliance for each major federal program and report on internal
control over compliance required by the Uniform Guidance ....................................................... 141
Schedule of expenditures of federal awards ................................................................................. 144
Notes to the schedule of expenditures of federal awards ............................................................. 147
Summary Schedule of Prior Audit Findings ................................................................................ 148
Schedule of findings and questioned costs ................................................................................... 149
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December 5, 2023
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, 2023 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, 2023. 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 562 full-time and 62 part-time permanent municipal employees and 300 temporary
employees, including a police force of 78 sworn personnel and a fire department of 66 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.
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 April 30th. 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 24,500 employees. The University of Iowa had an enrollment
in fall 2023 of 31,452 students, which is a decrease of 204 students from 31,656 students in the fall
of 2022. 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 had a substantial short-term impact on the City’s economy. The economy has mostly
recovered from the pandemic and Iowa City’s economy has continued to improve. As of June 2023,
Iowa City’s unemployment rate was 2.6% while the State of Iowa was at 2.7%, and the National
rate was 3.6%.
The rate of new housing construction also decreased substantially due to the COVID-19 pandemic
in 2020 and the City continues to see an increase in 2022 based on the number of building permits
issued. New housing building permits consisted of 98 new single-family houses and duplexes in
2022 as compared to 136 in 2021; multi-family dwelling units added during calendar year 2022
was 258, compared to 155 in 2021; and mixed commercial/residential developments added 0
dwelling units in 2022 versus 40 residential units in 2021. Altogether new housing additions totaled
356 units valued at $97,581,126 in 2022 versus a total of 331 units valued at $82,570,307 in 2021.
The City did see an increase in 2022 but the amounts were still less than pre COVID-19 totals of
556 units valued at $124,362,697 in 2019.
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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 construction
increased from $5,580,000 in 2021 to $7,179,000 in 2022. The value of remodeling permits for
residential and commercial properties decreased slightly from $37,374,362 in 2021 to $34,628,779
in 2022. Total permits issued in 2021 for all purposes was 580 permits for $135,490,596 which was
more permits but less value than the 2022 total permit issuance of 543 permits for $152,715,321.
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 opened 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.
Major Initiatives
The City of Iowa City developed a 5 year 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. This Strategic Plan builds on the City's previous plans to foster a
more inclusive, just and sustainable Iowa City by prioritizing the physical, mental and economic
well-being of all residents.
Values
• Partnerships and Engagement
• Climate Action
• Racial equity, social justice, and human rights
Impact Areas & Strategies
Neighborhoods & Housing
• Update the City Comprehensive Plan and Zoning Code to encourage compact
neighborhoods with diverse housing types and land uses.
• Partner in projects that serve as models for desired future development.
• Create inviting and active outdoor spaces with unique and engaging recreation offerings.
• Address the unique needs of vulnerable populations and low-to-moderate income
neighborhoods.
Mobility
• Expand the access and convenience of environmentally friendly and regionally connected
public transit.
• Design and maintain complete streets that are comfortable and safe for all users.
• Grow and prioritize bike and pedestrian accommodations.
Economy
• Reinforce Iowa City as a premier community to locate and grow a business.
• Ensure appropriate infrastructure is in place for future business growth and development.
• Cultivate a strong entrepreneurial and small businesses ecosystem with a focus on creating
new pathways to success for systemically marginalized populations.
• Build Iowa City’s image as the Greatest Small City for the Arts.
• Strengthen the Iowa River’s role as a signature community amenity and tourism generator.
Safety & Well-being
• Implement and expand innovative public safety models and facilities to improve outcomes
and relationships within the community.
• Partner with non-profits to address the most emergent and foundational community safety
and well-being needs.
• Build community by fostering social connections and developing safe, accessible public
spaces for gathering.
Resources:
Facilities, Equipment & Technology
• Invest in the next generation of public facilities and equipment to create immediate
operational efficiencies, boost workplace safety, health, and morale, and improve cross-
department collaboration.
• Promote high performance governance leveraging technology, partnerships, and
innovation.
People
• Establish the City of Iowa City as an employer of choice in the region with a pay plan,
benefits package, and flexible work options that attract and retain high-quality and
motivated public service employees.
• Carry out a multi-dimensional staff engagement initiative to ensure every City employee
feels welcome, informed, involved, and engaged at work.
• Build a diverse talent pipeline.
Financial
• Grow the tax base, consider alternative revenue sources, and leverage outside funding to
maintain core services and pursue community priorities while maintaining equitable
property tax rates.
• Exercise fiscal responsibility by maintaining and growing assigned and emergency reserve
funds and prudent debt management.
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 completed in 2022, 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. 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.
The passage of property tax reform (SF295) by the state legislature in 2013 is still impacting the
preparation of the year financial plan (FY2023 – FY2025). 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. Beginning in fiscal year 2023, the State began phasing out
the “backfill” and it will be fully phased out in five years.
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. The City will not receive any
money from the State due to lost revenue from this provision.
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. This will also not be reimbursed by the State of Iowa.
Due to the passage of SF295, the City estimates its net revenue losses to be $26,848,000 for fiscal
years 2015 through 2022. 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.
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In 2023 the state legislature passed additional property tax reform (HF718), which will have a
significant impact on the City’s budget starting with FY2025. In addition to eliminating two levies
(Emergency Levy & Library Levy) that the City currently utilizes the bill also reduces the amount
of growth that is allowed for the General Levy. The total impact of this new legislation has not
been estimated yet, but it is anticipated that it will be at least a reduction of $1 million dollars
annually.
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 was
reduced for nine consecutive years to $15.633 in fiscal year 2023 and remained at $15.633 in fiscal
year 2024. This has been a reduction of $1.636 per $1,000 of assessed value or 9.47% over that
time period.
In looking at expenses for the FY2022 – FY2025 Financial Plan and FY2024 operating budget, the
City will generally experience increased expenditures; with General Fund expenditures and total
operating expenditures growing at approximately 6% or less from FY2023 to FY2024. 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 & FY2023, three additional positions were added each year bringing the City’s total FTE
to 630.90. In FY2024, 16.05 FTEs were added, bringing the total to 646.95. The City has averaged
a 4.95% increase in its health insurance premium rates over the previous eight years; however, is
expecting a continued upward trend for health insurance rates in FY2024 and FY2025. Employee
contributions, deductibles, and out-of-pocket maximums for health insurance are all expected to
increase in FY2024, and employee contributions for health insurance are expected to increase in
FY2024, which should help mitigate the impact to the City’s overall premium increase. In FY2025
we are expecting to see increases as all expenditures are seeing continued increases due to inflation.
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, 2022.
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-seven 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, 2023. 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 eleventh
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, 2023. 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, Jacklyn Fleagle,
Accounting Coordinator, Mark Messer, Senior Accountants, TaraLynne Werthmann and Riley Davis
and Budget Management Analyst, Angie Ogden.
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,
Nicole Davies
Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Iowa City
Iowa
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
12
City of Iowa City
Organization Chart
CITY COUNCIL
CITY ATTORNEY
City Attorney
• City Attorney
CITY MANAGER
City Manager
• City Manager
• Communications Office
• Human Resources
• Human Rights
• Economic Development
• Climate Action & Outreach
AIRPORT
COMMISSION
Airport
• Airport Operations
LIBRARY
BOARD
Library
• Library Operations
• Library Development
Office
CITY CLERK
City Clerk
• City Clerk
Fire
• Administration• Emergency Operations• Fire Prevention• Training
Public Works
• Administration• Engineering• Streets• Wastewater• Water• Equipment • Resource Management
Transportation Services
• Administration• Parking• Public Transportation
Police
• Administration• Support Services• Field Operations
Finance
• Administration• Accounting• Purchasing• Revenue• Risk Management• Information Technology Services
Neighborhood &
Development Services
• Administration• Development Services• Neighborhood Services• Metropolitan Planning Organizationof Johnson County
Parks & Recreation
• Administration• Recreation• Park Maintenance• Cemetery• Government Buildings
Senior Center
• Senior Center Operations
ELECTED
APPOINTED
Departments & Divisions
COMMUNITY
City of Iowa City, Iowa
Listing of City Officials
June 30, 2023
Elected Officials
Term Expires
Mayor Bruce Teague January 2, 2026
Council Member and Mayor Pro Tem Megan Alter January 2, 2026
Council Member Pauline Taylor January 2, 2024
Council Member John Thomas January 2, 2024
Council Member Shawn Harmsen January 2, 2026
Council Member Laura Bergus January 2, 2024
Council Member Andrew Dunn 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
Assistant City Manager Vacant Vacant
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 Scott Lyon April 4, 2022
Parks and Recreation Director Juli Seydell Johnson January 4, 2016
Director of Finance Nicole Davies August 4, 2014
Chief of Police Dustin Liston January 11, 2021
14
Financial
Section
Tabs
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1818
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, 2023. 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, 2023 by $766,323,000 (net position). Of
this amount, $157,707,000 (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 $28,177,000 during the fiscal year. Governmental activities
increased by $21,464,000 and business-type activities increased by $6,713,000.
• At the close of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $123,284,000, an increase of $7,282,000 in comparison with the prior year. Of this total
amount, approximately $37,726,000 or 30.6% 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
$37,977,000 or 65.8% 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.
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 103 – 106. 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 – 80 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 $766,323,000 at the close of the fiscal year ended June 30, 2023.
By far, the largest portion of the City’s net position reflect its investment in capital assets (e.g., land, building,
machinery and equipment, improvements other than buildings, and infrastructure), net any related debt to
acquire those assets that is still outstanding. The City uses these capital assets to provide services to its citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Iowa City's Net Position
June 30, 2023
(amounts expressed in thousands)
Governmental Business-type
activities activities Total
Restated Restated Restated
2023 2022 2023 2022 2023 2022
Current and other assets 238,577$ 235,021$ 141,380$ 135,788$ 379,957$ 370,809$
Capital assets 284,995 277,358 331,579 333,503 616,574 610,861
Total assets 523,572 512,379 472,959 469,291 996,531 981,670
Deferred outflows of resources 8,319 8,322 1,909 1,907 10,228 10,229
Long-term liabilities outstanding 105,954 85,972 25,319 23,225 131,273 109,197
Current and other liabilities 26,717 31,725 7,717 6,272 34,434 37,997
Total liabilities 132,671 117,697 33,036 29,497 165,707 147,194
Deferred inflows of resources 70,983 96,231 3,746 10,328 74,729 106,559
Net position:
Net investment in capital assets 235,218 230,368 325,391 325,787 560,609 556,155
Restricted 40,048 36,900 7,959 13,216 48,007 50,116
Unrestricted 52,971 39,505 104,736 92,370 157,707 131,875
Total net position 328,237$ 306,773$ 438,086$ 431,373$ 766,323$ 738,146$
21
A portion of the City’s net position, $48,007,000 or 6.3%, represents resources that are subject to external
restrictions on how they may be used. The remaining balance of the unrestricted net position, $157,707,000 or
20.6%, 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, 2023, 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 FY23’s operation.
Governmental Activities: Governmental activities increased the City’s net position by $21,464,000. The
increase in net position of governmental activities is primarily from an increase in earnings on investments and
conservative budgeting.
The total revenues for governmental activities for FY23 were $113,905,000. Governmental activities are
primarily funded through taxes, $74,610,000 or 65.5%, and grants and contributions, $19,907,000 or 17.5%.
Taxes increased from the prior year by $391,000, which is relatively flat year over year. Grants and
contributions decreased from prior year by $455,000 due mainly to additional funding from the American
Rescue Plan Act in FY22.
Expenses for governmental activities totaled $87,565,000. Governmental activities are tracked by function
including Public Safety, Public Works, Community and Economic Development, Culture and Recreation, and
General Government. In FY23, Public Safety accounted for the highest portion of governmental expenses,
$26,413,000 or 30.2%, and increased over the prior year due to an increase in pension expense due to a increase
in the net pension liability. Public Works expenses of $19,051,000 or 21.8% 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 $18,135,000 or 20.7% made up the third highest portion of governmental expenses and had a slight
increase in expenses from the prior year.
Business-type Activities: Business-type activities increased the City’s total net position by $6,713,000. The
increase in net position was primarily from the Transit and Water funds. Water generated operating income of
$1,326,000 and received contributions of infrastructure of $547,000 from capital projects funds.
Revenues for business-type activities totaled $66,265,000. The primary revenue source for business-type
activities is charges for services, $44,203,000 or 66.7%. In addition for FY23, the City’s business type-activities
had a significant portion, $18,373,000 or 27.7%, 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 FY23 were $64,428,000. Wastewater Treatment represented
the highest portion of business-type activities, $12,869,000 or 20.0%, with Housing Authority, $12,067,000 or
18.7%, Sanitation, $10,282,000 or 16.0% Water, $9,672,000 or 15.0%, and Transit, $9,276,000 or 14.4%,
making up the remainder of the majority of business-type activities expenses.
22
The graphs on the following pages represent a breakdown of revenue by source and expenses by program area
for governmental and business-type activities.
City of Iowa City's Changes in Net Position
(amounts expressed in thousands)
Governmental Business-type
activities activities Total
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for services 9,874$ 10,754$ 44,203$ 42,694$ 54,077$ 53,448$
Operating grants and contributions 15,550 14,491 16,741 17,063 32,291 31,554
Capital grants and contributions 3,113 4,316 1,632 5,711 4,745 10,027
General Revenues:
Property taxes 70,824 70,678 - - 70,824 70,678
Other taxes 3,786 3,541 - - 3,786 3,541
Grants and contributions not restricted
to specific purposes 1,244 1,555 - - 1,244 1,555
Earnings (loss) on investments 4,325 (544) 2,605 (190) 6,930 (734)
Gain on disposal of capital assets 1,205 257 1 23 1,206 280
Other 3,984 3,524 1,083 1,233 5,067 4,757
Total revenues 113,905 108,572 66,265 66,534 180,170 175,106
Expenses:
Public safety 26,413 23,609 - - 26,413 23,609
Public works 19,051 17,746 - - 19,051 17,746
Culture and recreation 18,135 16,923 - - 18,135 16,923
Community and economic development 13,570 11,074 - - 13,570 11,074
General government 8,774 7,439 - - 8,774 7,439
Interest on long-term debt 1,622 1,553 - - 1,622 1,553
Wastewater treatment - - 12,869 12,105 12,869 12,105
Water - - 9,672 9,477 9,672 9,477
Sanitation - - 10,282 10,113 10,282 10,113
Housing authority - - 12,067 11,832 12,067 11,832
Parking - - 6,436 5,381 6,436 5,381
Airport - - 1,433 1,509 1,433 1,509
Stormwater - - 2,393 2,190 2,393 2,190
Transit - - 9,276 8,573 9,276 8,573
Total expenses 87,565 78,344 64,428 61,180 151,993 139,524
Change in net position before transfers 26,340 30,228 1,837 5,354 28,177 35,582
Transfers (4,876) (11,148) 4,876 11,148 - -
Change in net position 21,464 19,080 6,713 16,502 28,177 35,582
Net position beginning of year, as restated 306,773 287,610 431,373 414,871 738,146 702,481
Net position end of year 328,237$ 306,690$ 438,086$ 431,373$ 766,323$ 738,063$
23
24
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, 2023, the City’s governmental funds reported combined ending fund
balances of $123,284,000, an increase of $7,282,000 in comparison with the prior year. Of this total amount,
$37,726 ,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 $63,540,000 or 51.5% contains external restraints on its use. The assigned fund balances of
$19,622,000 or 15.9% have been identified by the City to be used for specific purposes. The nonspendable fund
balance is $2,396,000 or 1.9%, 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, 2023, the
unassigned fund balance of the General Fund was $37,977,000 while General Fund’s total fund balance was
$62,036,000. 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 65.8% of total
General Fund expenditures of $57,709,000, while total fund balance represents 107.5% of that same amount.
During the current fiscal year, the fund balance of the City’s General Fund increased by $3,206,000. This is
due to transfers in from other funds.
The fund balance in the Bridge, Street, and Traffic Control Construction Fund was $15,362,000, a decrease of
$3,732,000. This fund accounts for transactions relating to the acquisition or construction of major streets,
bridges, and traffic control facilities.
The fund balance in the Other Construction Fund was $13,928,000, an increase of $4,171,000. 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 increase is mainly due to bond sales.
The ending fund balance of the Debt Service Fund was $7,426,000, an increase of $64,000, 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 $4,288,000, an increase of $157,000.
The ending fund balance of the Other Shared Revenue and Grants Fund was $16,135,000, an increase of
$3,739,000 due to $2,038,000 developer fee for affordable housing.
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 $413,589,000, an increase in net position of $5,196,000.
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, $325,391,000 is net investment in capital assets. Unrestricted net position totaled $80,239,000, an
increase of $10,849,000 compared to the previous year.
The Internal Service funds showed net position totaling $59,596,000 as of June 30, 2023, an increase of
$4,544,000 primarily due to operating income in the Equipment Maintenance and Loss Reserve Funds to build
up reserves for future expenses and 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 $15,076,000 or 9.2% to a total of $179,822,000 and the expenditure budget by $69,579,000 or 35.8% to a
total of $264,178,000. 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, 2023 amounts to $616,574,000, 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, 2023 increased by $7,637,000
for governmental activities compared to the prior year and decreased by $1,924,000 for business-type activities
from the prior year.
The following table reflects the $616,574,000 investment in capital assets, net of accumulated depreciation.
City of Iowa City's Capital Assets
(net of depreciation)
(amounts expressed in thousands)
Governmental Business-type
Activities Activities Total
Restated Restated Restated
2023 2022 2023 2022 2023 2022
Land 32,542$ 32,876$ 30,957$ 30,317$ 63,499$ 63,193$
Buildings 34,397 35,382 55,969 58,688 90,366 94,070
Improvements other than
buildings 3,097 3,353 3,098 3,334 6,195 6,687
Machinery and equipment 35,942 33,933 15,505 17,435 51,447 51,368
IT subsciptions 370 526 349 - 719 526
Infrastructure 158,841 161,819 210,648 213,650 369,489 375,469
Construction in progress 19,806 9,469 15,053 10,079 34,859 19,548
Total 284,995$ 277,358$ 331,579$ 333,503$ 616,574$ 610,861$
27
Major capital asset events during the current fiscal year included the following:
• Three large construction projects were completed during FY 23. The first is First Avenue & Scott
Boulevard Intersection. This project includes addition of a roundabout at the intersection of First
Avenue and Scott Boulevard. This project had construction in progress balance at the beginning of the
year of $810,000 and current year expenditures of $1,257,000. The total cost of the project that was
capitalized was $2,053,000. The project was funded through bond sales. Another project is the Fire
Apparatus Replacement Project. This project consisted of purchasing a new fire engine. It had current
year expenditures of $1,535,000. The total cost of the project that was capitalized was $1,535,000 and
it was primarily funded through bond sales. The third project, Landfill Gas Infrastructure, connects
existing loops of gas line infrastructure and extends the gas line to improve flow to increase efficiencies
and control of gas. This project was capitalized at $785,000 with current year expenses of $156,000
and a beginning construction in progress balance of $629,000.
Additional information on the City’s capital assets can be found in Note 5 to the financial statements.
Debt Administration: At the end of the fiscal year, the City had total bonded debt outstanding of $67,420,000.
Of this amount, $52,915,000 comprises debt backed by the full faith and credit of the City. $1,058,000 or 2.0%
of the general obligation bonds is debt that will be paid with Tax Increment Financing revenues. $14,505,000
represents revenue bonds secured solely by specific revenue sources.
The City issued $9,105,000 of General Obligation bonds during FY23. This increase in debt was offset by
the retirement of debt for a net decrease of City’s total bonded debt by $5,820,000.
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, 2023 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 $362,420,000. With outstanding debt applicable
to this limit of $95,790,000 we are utilizing 26.4% of this limit.
More detailed information on debt administration is provided in Note 6 of the financial statements.
City of Iowa City's Outstanding Debt
General Obligation and Revenue Bonds
(amounts expressed in thousands)
Governmental Business-type
Activities Activities Total
2023 2022 2023 2022 2023 2022
General obligation bonds 52,915$ 53,935$ -$ -$ 52,915$ 53,935$
Revenue bonds 10,880 11,840 3,625 7,465 14,505 19,305
Total 63,795$ 65,775$ 3,625$ 7,465$ 67,420$ 73,240$
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 expenditures exceed revenues by $3,105,000 in the General Fund
for FY24 that strives to maintain current service delivery levels. The tax levy rate per $1,000 of assessed
valuation for FY24 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 0.200
Total City Levy $ 15.633
29
Governmental Business-type
Activities Activities Total
Assets
Equity in pooled cash and investments 149,259$ 77,525$ 226,784$
Receivables:
Property tax 66,779 - 66,779
Accounts and unbilled usage 829 4,200 5,029
Interest 560 347 907
Notes 5,331 317 5,648
Internal balances (27,097) 27,097 -
Lease receivable 56 2,308 2,364
Due from other governments 7,270 5,278 12,548
Inventories 900 931 1,831
Assets held for resale 2,058 - 2,058
Restricted assets:
Equity in pooled cash and investments 32,632 23,377 56,009
Capital assets:
Land and construction in progress 52,348 46,010 98,358
Other capital assets (net of accum. depreciation/amortization)232,647 285,569 518,216
Total assets 523,572 472,959 996,531
Deferred Outflows of Resources
Pension related deferred outflows 7,164 1,445 8,609
OPEB related deferred outflows 1,155 464 1,619
Total deferred outflows of resources 8,319 1,909 10,228
Liabilities
Accounts payable 2,933 2,384 5,317
Contracts payable 3,993 2,452 6,445
Accrued liabilities 3,902 237 4,139
Interest payable 180 36 216
Deposits 1,381 2,481 3,862
Advances from grantors 14,293 - 14,293
Due to other governments 35 73 108
Unearned revenue - 54 54
Noncurrent liabilities:
Due within one year:
Employee vested benefits 1,483 479 1,962
Subscription Liability 135 - 135
Bonds payable 11,512 1,780 13,292
Due in more than one year:
Employee vested benefits 1,146 339 1,485
Subscription Liability 182 - 182
Net pension liability 29,470 5,319 34,789
Other post employment benefits liability 6,228 2,502 8,730
Notes payable 211 - 211
Bonds payable 55,587 1,922 57,509
Landfill closure/post-closure liability - 12,978 12,978
Total liabilities 132,671$ 33,036$ 165,707$
(continued)
(amounts expressed in thousands)
City of Iowa City, Iowa
Statement of Net Position
June 30, 2023
30
Governmental Business-type
Activities Activities Total
Deferred Inflows of Resources
Pension related deferred inflows 2,919$ 721$ 3,640$
OPEB related deferred inflows 1,696 682 2,378
Lease related deferred inflows 56 2,309 2,365
Deferred amount on refunding - 34 34
Succeeding year property taxes 66,312 - 66,312
Total deferred inflows of resources 70,983 3,746 74,729
Net Position
Net investment in capital assets 235,218 325,391 560,609
Restricted for or by:
Employee benefits 4,655 - 4,655
Capital projects:
Expendable 15,019 - 15,019
Nonexpendable 269 - 269
Debt service 7,246 - 7,246
Police 260 - 260
Other purposes
Expendable 9,217 - 9,217
Nonexpendable 69 - 69
Bond ordinance - 3,189 3,189
State statute - 3,030 3,030
Future improvements - 404 404
Grant agreement 3,313 1,336 4,649
Unrestricted 52,971 104,736 157,707
Total net position 328,237$ 438,086$ 766,323$
The notes to the financial statements are an integral part of this statement.
June 30, 2023
(amounts expressed in thousands)
City of Iowa City, Iowa
Statement of Net Position (continued)
31
3232
Operating Capital
Charges Grants and Grants and Governmental Business-type
Functions/Programs:Expenses for Services Contributions Contributions Activities Activities Total
Governmental activities:
Public safety 26,450$ 5,129$ 240$ -$ (21,081)$ -$ (21,081)$
Public works 19,051 112 10,252 2,675 (6,012) - (6,012)
Culture and recreation 18,135 696 109 438 (16,892) - (16,892)
Community and economic development 13,570 2,066 4,953 - (6,551) - (6,551)
General government 8,774 1,871 (4) - (6,907) - (6,907)
Interest on long-term debt 1,622 - - - (1,622) - (1,622)
Total governmental activities 87,602 9,874 15,550 3,113 (59,065) - (59,065)
Business-type activities:
Wastewater treatment 12,869 12,333 - 167 - (369) (369)
Water 9,672 10,473 6 235 - 1,042 1,042
Sanitation 10,282 11,853 - - - 1,571 1,571
Housing authority 12,067 307 11,529 - - (231) (231)
Parking 6,436 5,296 - - - (1,140) (1,140)
Airport 1,433 389 147 690 - (207) (207)
Stormwater 2,393 1,730 - 540 - (123) (123)
Transit 9,276 1,822 5,059 - - (2,395) (2,395)
Total business-type activities 64,428 44,203 16,741 1,632 - (1,852) (1,852)
Total 152,030$ 54,077$ 32,291$ 4,745$ (59,065) (1,852) (60,917)
General revenues:
Property taxes, levied for general purposes 70,824 - 70,824
Hotel/motel tax 1,885 - 1,885
Gas and electric tax 784 - 784
Utility franchise tax 1,117 - 1,117
Grants and contributions not restricted to specific purposes 1,244 - 1,244
Earnings (loss) on investments 4,325 2,605 6,930
Gain on disposal of capital assets 1,242 1 1,243
Miscellaneous 3,984 1,083 5,067
Transfers (4,876) 4,876 -
Total general revenues and transfers 80,529 8,565 89,094
Changes in net position 21,464 6,713 28,177
Net position beginning of year, as restated 306,773 431,373 738,146
Net position end of year 328,237$ 438,086$ 766,323$
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, 2023
(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 57,640$ 21,378$ 4,251$ 5,814$ 6,331$ 7,137$ 649$ 103,200$
Receivables:
Property tax 40,444 842 14,072 - - 10,765 656 66,779
Accounts and unbilled usage 534 13 - - 154 - - 701
Interest 183 76 - 67 60 24 10 420
Notes 1,288 494 - - - 160 3,389 5,331
Due from other funds 214 - - - - - - 214
Lease receivable 16 - - - - - - 16
Advances to other funds - - - - - 35 - 35
Due from other governments 2,716 1,130 384 271 2,562 - 126 7,189
Inventories - 269 - - - - - 269
Assets held for resale 2,058 - - - - - - 2,058
Restricted assets:
Equity in pooled cash and investments 3,348 7,441 - 11,801 10,042 - - 32,632
Total assets 108,441$ 31,643$ 18,707$ 17,953$ 19,149$ 18,121$ 4,830$ 218,844$
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities
Accounts payable 1,796$ 341$ 52$ 63$ -$ -$ 95$ 2,347$
Contracts payable - - - 724 3,269 - - 3,993
Accrued liabilities 738 46 1 - - - 11 796
Due to other funds - - - - - - 3 3
Advances from other funds - 35 - 2,811 - - - 2,846
Due to other governments 35 - - - - - - 35
Liabilities payable from restricted assets:
Deposits 1,371 10 - - - - - 1,381
Advances from grantors 19 13,954 - 320 - - - 14,293
Total liabilities 3,959 14,386 53 3,918 3,269 - 109 25,694
Deferred Inflows of Resources
Unavailable revenues:
Succeeding year property taxes 40,187 836 13,982 - - 10,695 612 66,312
Lease related deferred inflows 16 - - - - - - 16
Grants 304 286 - 22 518 - - 1,130
Other 1,939 - 384 85 - - - 2,408
Total deferred inflows of resources 42,446 1,122 14,366 107 518 10,695 612 69,866
Fund Balances
Nonspendable 2,127 269 - - - - - 2,396
Restricted 2,310 15,866 4,288 13,928 15,362 7,426 4,360 63,540
Assigned 19,622 - - - - - - 19,622
Unassigned 37,977 - - - - - (251) 37,726
Total fund balances 62,036 16,135 4,288 13,928 15,362 7,426 4,109 123,284
Total liabilities, deferred inflows
of resources and fund balances 108,441$ 31,643$ 18,707$ 17,953$ 19,149$ 18,121$ 4,830$ 218,844$
The notes to the financial statements are an integral part of this statement.
Special Revenue Capital Projects
City of Iowa City, Iowa
Balance Sheet
Governmental Funds
June 30, 2023
(amounts expressed in thousands)
34
Total governmental fund balances 123,284$
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.59,596
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.3,537
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in the funds. 267,382
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 8,016$
Deferred inflows of resources (4,400) 3,616
Net pension liabilities are not due and payable in the
current period and therefore are not reported in the funds.(28,613)
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds.(2,510)
Accrued post employment benefit liabilities are not due and
payable in the current period and therefore are not reported
in the funds.(5,867)
Subscription liabilities are not due and payable in the current
period and therefore are not reported in the funds.(201)
Bonds payable are not due and payable in the current period
and therefore are not reported in the funds.(67,099)
Notes payable are not due and payable in the current period
and therefore are not reported in the funds.(211)
Accrued interest on bonds (180)
Internal balance due to integration of internal service funds (24,497)
Total net position of governmental activities 328,237$
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, 2023
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 43,989$ 853$ 14,261$ -$ -$ 10,900$ 4,608$ 74,611$
Licenses and permits 2,854 - - - - - - 2,854
Intergovernmental 3,918 13,060 258 567 2,967 197 2,476 23,443
Charges for services 1,352 2,107 338 93 - - - 3,890
Fines and forfeits 372 - - - - - - 372
Use of money and property 1,591 817 - 250 443 343 103 3,547
Miscellaneous 2,163 94 - 220 879 - 121 3,477
Total revenues 56,239 16,931 14,857 1,130 4,289 11,440 7,308 112,194
Expenditures
Current:
Public safety 26,923 - 712 14 - - - 27,649
Public works 2,700 6,595 - 171 1,974 - - 11,440
Culture and recreation 15,317 - - 692 - - - 16,009
Community and economic development 3,556 3,788 - 103 - - 6,182 13,629
General government 7,777 398 497 10 - 66 - 8,748
Debt service:
Principal - - - - - 11,085 - 11,085
Interest - - - - - 2,072 - 2,072
Capital outlay 1,436 403 - 4,724 14,261 - - 20,824
Total expenditures 57,709 11,184 1,209 5,714 16,235 13,223 6,182 111,456
Excess (deficiency) of revenues over
(under) expenditures (1,470) 5,747 13,648 (4,584) (11,946) (1,783) 1,126 738
Other Financing Sources (Uses)
Issuance of debt - - - 4,733 4,320 52 - 9,105
Sale of capital assets 129 - - - 1,409 - - 1,538
Premiums on issuance of bonds - - - 465 424 5 - 894
Transfers in 13,034 1,650 - 3,592 4,082 1,790 483 24,631
Transfers out (8,487) (3,658) (13,491) (35) (2,021) - (1,932) (29,624)
Total other financing sources and (uses)4,676 (2,008) (13,491) 8,755 8,214 1,847 (1,449) 6,544
Net change in fund balances 3,206 3,739 157 4,171 (3,732) 64 (323) 7,282
Fund Balances, Beginning 58,830 12,396 4,131 9,757 19,094 7,362 4,432 116,002
Fund Balances, Ending 62,036$ 16,135$ 4,288$ 13,928$ 15,362$ 7,426$ 4,109$ 123,284$
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, 2023
(amounts expressed in thousands)
36
Net change in fund balances - total governmental funds 7,282$
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 16,099$
Capital assets contributed 211
Depreciation/amortization expense (9,070) 7,240
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 (9,105)
Premium on bonds issued (894)
Repayments of subscription liability 71
Repayments of debt 11,085
Amortization of premium 458 1,615
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.(482)
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 (30)
Pension expense 3,691
Change in accrued post employment benefit liability (494)
Change in accrued interest on debt (8)
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.(377)
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.3,027
Change in net position of governmental activities 21,464$
The notes to the financial statements are an integral part of this statement.
(amounts expressed in thousands)
For the Year Ended June 30, 2023
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
Governmental
Activities -
Other Internal
Wastewater Housing Enterprise Service
Transit Treatment Water Sanitation Stormwater Authority Funds Total Funds
Assets
Current assets:
Equity in pooled cash and investments 10,565$ 27,188$ 13,062$ 14,956$ 2,539$ 4,817$ 4,398$ 77,525$ 46,059$
Receivables (net of allowance for uncollectibles):
Accounts and unbilled usage 74 1,529 1,301 990 187 48 71 4,200 128
Interest 41 92 45 101 9 43 16 347 140
Notes - - - - - 317 - 317 -
Lease 126 - - 16 - - 28 170 20
Due from other governments 4,422 61 13 136 - 205 441 5,278 81
Inventories 523 - 408 - - - - 931 631
Total current assets 15,751 28,870 14,829 16,199 2,735 5,430 4,954 88,768 47,059
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments 5 1 4,370 16,035 - 2,654 312 23,377 -
Advances to other funds - - - 4,200 - - - 4,200 -
Lease receivable 1,355 - - 250 - - 533 2,138 20
Capital assets:
Land 2,630 1,399 6,296 2,264 2,264 620 15,484 30,957 685
Buildings 15,399 36,858 24,019 5,402 - 7,427 48,122 137,227 1,553
Improvements other than buildings - 7,802 2,721 470 - 34 773 11,800 50
Machinery and equipment 15,649 13,000 11,456 277 27 71 980 41,460 27,409
Infrastructure 955 164,712 75,841 20,123 73,770 - 17,451 352,852 3,634
Accumulated depreciation (16,577) (102,813) (49,885) (21,034) (21,852) (5,517) (40,441) (258,119) (16,284)
IT subscriptions - - - - - - 349 349 608
Accumulated amortization - - - - - - - - (463)
Construction in progress 443 2,926 3,628 1,852 4,783 - 1,421 15,053 421
Total noncurrent assets 19,859 123,885 78,446 29,839 58,992 5,289 44,984 361,294 17,633
Total assets 35,610 152,755 93,275 46,038 61,727 10,719 49,938 450,062 64,692
Deferred Outflows of Resources
Pension related deferred outflows 413 216 248 300 23 89 156 1,445 237
OPEB related deferred outflows 134 65 91 91 5 26 52 464 66
Total deferred outflows of resources 547 281 339 391 28 115 208 1,909 303
Liabilities
Current liabilities:
Accounts payable 1,309 317 365 216 11 55 111 2,384 585
Contracts payable 1 561 331 464 78 - 1,017 2,452 -
Accrued liabilities 64 35 41 50 4 16 27 237 3,106
Employee vested benefits 131 67 75 110 8 24 64 479 67
Subscription liability - - - - - - - - 57
Due to other funds - - - - - - 211 211 -
Due to other governments - - 69 3 - 1 - 73 -
Unearned revenue - - - - - 54 - 54 -
Interest payable - - 36 - - - - 36 -
Bonded debt payable (net of unamortized
premium and discounts)- - 1,780 - - - - 1,780 -
Total current liabilities 1,505 980 2,697 843 101 150 1,430 7,706 3,815
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits 3 - 1,148 7 - 1,315 8 2,481 -
Advances from other funds - - - - - - 1,389 1,389 -
Employee vested benefits 91 46 49 81 5 18 49 339 52
Subscription liability - - - - - - - - 59
Bonded debt payable (net of unamortized
premium and discounts)- - 1,922 - - - - 1,922 -
Net pension liability 1,513 789 943 1,106 87 354 527 5,319 857
Other post employment benefits liability 722 348 490 490 26 142 284 2,502 361
Landfill closure/postclosure liability - - - 12,978 - - - 12,978 -
Total noncurrent liabilities 2,329 1,183 4,552 14,662 118 1,829 2,257 26,930 1,329
Total liabilities 3,834 2,163 7,249 15,505 219 1,979 3,687 34,636 5,144
Deferred Inflows of Resources
Lease related deferred inflows 1,481 - - 266 - - 562 2,309 40
Pension related deferred inflows 205 107 128 150 12 48 71 721 116
OPEB related deferred inflows 197 95 133 133 7 39 78 682 99
Deferred amount on refunding - - 34 - - - - 34 -
Total deferred inflow of resources 1,883 202 295 549 19 87 711 3,746 255
Net Position
Net investment in capital assets 18,498 123,323 70,009 8,890 58,914 2,635 43,122 325,391 17,497
Restricted by bond ordinance - - 3,189 - - - - 3,189 -
Restricted by state statute - - - 3,030 - - - 3,030 -
Restricted for future improvements - - - - - - 404 404 -
Restricted by grant agreement - - - - - 1,336 - 1,336 -
Unrestricted 11,942 27,348 12,872 18,455 2,603 4,797 2,222 80,239 42,099
Total net position 30,440$ 150,671$ 86,070$ 30,375$ 61,517$ 8,768$ 45,748$ 413,589$ 59,596$
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds.24,497
Net position of business-type activities 438,086$
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, 2023
(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 1,702$ 12,333$ 10,473$ 11,837$ 1,730$ 307$ 5,602$ 43,984$ 24,843$
Miscellaneous 68 65 694 113 11 46 86 1,083 -
Total operating revenues 1,770 12,398 11,167 11,950 1,741 353 5,688 45,067 24,843
Operating Expenses:
Personal services 4,541 3,282 3,571 3,947 338 974 2,240 18,893 2,467
Commodities 1,072 2,200 1,648 250 376 49 1,060 6,655 3,120
Services and charges 2,545 3,260 2,316 6,041 210 10,836 2,181 27,389 13,172
8,158 8,742 7,535 10,238 924 11,859 5,481 52,937 18,759
Depreciation 1,253 4,308 2,306 802 1,475 255 2,279 12,678 2,566
Total operating expenses 9,411 13,050 9,841 11,040 2,399 12,114 7,760 65,615 21,325
Operating income (loss)(7,641) (652) 1,326 910 (658) (11,761) (2,072) (20,548) 3,518
Nonoperating Revenues (Expenses):
Gain (loss) on disposal of capital assets (18) 1 (4) - - - (203) (224) 37
Operating grants 5,059 - 6 - - 11,529 147 16,741 -
Lease revenue 120 - - 16 - - 83 219 19
Interest income 345 670 638 582 64 169 137 2,605 779
Interest expense - - (26) - - - - (26) (5)
Total nonoperating revenues (expenses)5,506 671 614 598 64 11,698 164 19,315 830
Income (loss) before capital contributions
and transfers (2,135) 19 1,940 1,508 (594) (63) (1,908) (1,233) 4,348
Capital contributions - 167 235 - 540 - 690 1,632 -
Transfers in 4,120 10 549 607 1,489 - 100 6,875 1,320
Transfers out - (332) (821) (438) (403) (55) (29) (2,078) (1,124)
Change in net position 1,985 (136) 1,903 1,677 1,032 (118) (1,147) 5,196 4,544
Net Position, Beginning, as restated 28,455 150,807 84,167 28,698 60,485 8,886 46,895 55,052
Net Position, Ending 30,440$ 150,671$ 86,070$ 30,375$ 61,517$ 8,768$ 45,748$ 59,596$
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds 1,517
Change in net position of business-type activities 6,713$
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 Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
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 1,704$ 12,276$ 10,992$ 11,807$ 1,716$ 356$ 5,688$ 44,539$ -$
Receipts from users - - - - - - - - 24,886
Payments to suppliers (2,979) (5,384) (3,702) (5,575) (594) (10,904) (2,491) (31,629) (16,470)
Payments to employees (5,026) (3,600) (3,916) (4,256) (363) (1,073) (2,390) (20,624) (2,764)
Net cash flows from (used for) operating activities (6,301) 3,292 3,374 1,976 759 (11,621) 807 (7,714) 5,652
Cash Flows From Noncapital Financing Activities
Grants received 5,005 2 7 3 - 11,324 89 16,430 -
Transfers from other funds 4,120 3 2 607 36 - 100 4,868 1,320
Transfers to other funds - (332) (821) (438) (403) (55) (29) (2,078) (1,124)
Repayment/(payment) of notes receivable - - - - - 9 - 9 -
Advances to other funds - - - - - - 211 211 -
Repayment of advances from other funds - - - 562 - - (373) 189 -
Net cash flows from (used for) noncapital financing
activities 9,125 (327) (812) 734 (367) 11,278 (2) 19,629 196
Cash Flows From Capital and Related Financing
Activities
Capital grants received 3,073 - - - - - 539 3,612 -
Lease revenues received 120 - - 16 - - 83 219 19
Acquisition and construction of property and
equipment (309) (2,743) 479 (1,824) (1,521) - (1,873) (7,791) (3,516)
Proceeds from sale of property 6 1 - - - - 1 8 213
Principal paid on subscription liability - - - - - - - - (55)
Interest paid on subscription liability - - - - - - - - (5)
Principal paid on bonded debt - (2,085) (1,755) - - - - (3,840) -
Interest paid on bonded debt - (121) (86) - - - - (207) -
Net cash flows from (used for) capital and related
financing activities 2,890 (4,948) (1,362) (1,808) (1,521) - (1,250) (7,999) (3,344)
Cash Flows From Investing Activities
Interest on investments 305 582 599 497 56 143 122 2,304 667
Net increase (decrease) in cash and cash equivalents 6,019 (1,401) 1,799 1,399 (1,073) (200) (323) 6,220 3,171
Cash and Cash Equivalents, Beginning 4,551 28,590 15,633 29,592 3,612 7,671 5,033 94,682 42,888
Cash and Cash Equivalents, Ending 10,570$ 27,189$ 17,432$ 30,991$ 2,539$ 7,471$ 4,710$ 100,902$ 46,059$
Reconciliation of operating income (loss)
to net cash flows from (used for) operating activities:
Operating income (loss)(7,641)$ (652)$ 1,326$ 910$ (658)$ (11,761)$ (2,072)$ (20,548)$ 3,518$
Adjustments to reconcile operating income
(loss) to net cash flows from (used for) operating activities:
Depreciation expense 1,253 4,308 2,306 802 1,475 255 2,279 12,678 2,566
Changes in:
Receivables:
Accounts and unbilled usage (74) (122) (202) (112) (25) (21) 6 (550) 98
Due from other governments 13 - 13 (28) - - (2) (4) (55)
Inventories (118) - (24) - - - - (142) 61
Accounts payable 775 77 217 (33) (8) 9 750 1,787 18
Contracts payable (19) - - - - - - (19) -
Accrued liabilities (192) (75) (86) (104) (7) (38) (53) (555) (333)
Employee vested benefits (16) (3) (1) 2 - (3) 3 (18) 11
Due to other governments - (1) 69 (2) - (28) - 38 -
Unearned revenue - - (6) - - (54) - (60) -
Deposits (5) - 20 (3) - 78 (4) 86 -
Net pension liability 1,460 760 908 1,068 84 342 509 5,131 825
Deferred outflows of resources (4) (2) 12 (2) - 6 (12) (2) (2)
Deferred inflows of resources (1,783) (1,022) (1,212) (1,307) (104) (416) (617) (6,461) (1,080)
Other post employment benefits liability 50 24 34 34 2 10 20 174 25
Landfill closure/postclosure liability - - - 751 - - - 751 -
Total adjustments 1,340 3,944 2,048 1,066 1,417 140 2,879 12,834 2,134
Net cash flows from (used for) operating activities (6,301)$ 3,292$ 3,374$ 1,976$ 759$ (11,621)$ 807$ (7,714)$ 5,652$
Noncash Investing, Capital, and
Financing Activities:
Contributions of capital assets from
government and others -$ 174$ 782$ -$ 1,993$ -$ -$ 2,949$ -$
Capital grants not yet received -$ -$ -$ -$ -$ -$ 314$ 314$ -$
Operating grants not yet received 4,381$ 61$ 13$ 81$ -$ 205$ 124$ 4,865$ -$
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, 2023
(amounts expressed in thousands)
40
Project Green
Assets
Equity in pooled cash and investments 70$
Total assets 70
Liabilities
Accounts payable 5
Total liabilities 5
Net Position
Restricted for an organization 65$
The notes to the financial statements are an integral part of this statement.
June 30, 2023
(amounts expressed in thousands)
City of Iowa City, Iowa
Statement of Fiduciary Net Position
Custodial Fund
41
Project Green
Additions:
Contributions 30$
Interest 2
Total additions 32
Deductions:
Commodities -
Services and charges 23
Total deductions 23
Change in net position 9
Net Position, Beginning 56
Net Position, Ending 65$
The notes to the financial statements are an integral part of this statement.
City of Iowa City, Iowa
Statement of Changes in Fiduciary Net Position
Custodial Fund
For the Year Ended June 30, 2023
(amounts expressed in thousands)
42
City of Iowa City, Iowa
Notes to Financial Statements
June 30, 2023
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 Net Position presents the City’s nonfiduciary assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference reported as net position. Net position is
reported in the following categories:
Net investment in capital assets consists of capital assets, net of accumulated
depreciation/amortization and reduced by outstanding balances for bonds, notes and other debt
attributable to the acquisition, construction, or improvement of those assets.
Restricted net position results when constraints placed on net position use are either externally
imposed or are imposed by law through constitutional provisions or enabling legislation.
Unrestricted net position consists of net position not meeting the definition of the preceding
categories. Unrestricted net position is often subject to constraints imposed by management which
can be removed or modified.
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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.
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, proprietary funds, and custodial funds are accounted
for on the flow of economic resources 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.
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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
capital 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 capital assets, such as streets, bridges, dams, sidewalks, and lighting
system.
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.
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.
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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 31 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.
Leases
The City is a lessor for several noncancellable leases of City property. The City recognizes lease
receivables and deferred inflows of resources at the commencement of the lease term in the governmental
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activities, the business type activities, governmental, business type, and internal service fund financial
statements. As lessor, the assets underlying the lease are not derecognized.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by
the principal portion of lease payments received. The deferred inflow of resources is initially measured as
the initial amount of the lease receivable, adjusted for lease payments received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life
of the lease term.
Key estimates and judgments include how the City determines the discount rate it uses to discount the
expected lease receipts to present value, lease term and lease receipts.
The City uses its most recent borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
Subscription-Based Information Technology Arrangements (SBITA)
The City has entered into contracts that convey control of the right to use information technology
software. The City has recognized subscription liabilities and intangible right-to-use IT subscription
assets in the government-wide financial statements, and in the proprietary fund financial statements.
At the commencement of the IT subscription term, the City initially measures the subscription liability at
the present value of payments expected to be made during the subscription term. Subsequently, the IT
subscription liability is reduced by the principal portion of payments made. The right-to-use IT
subscription asset is initially measured as the sum of the initial IT subscription liability, adjusted for
payments made at or before the commencement date, plus capitalization implementation costs less any
incentives received from the SBITA vendor at or before the commencement of the subscription term.
Subsequently, the right-to-use IT subscription asset is amortized on a straight-line basis over its useful
life.
Key estimates and judgments related to IT subscription arrangements include how the City determines the
discount rate it uses to discount the expected payments to present value, term and payments.
The City uses its most recent borrowing rate as the discount rate.
The IT subscription term includes the noncancellable period of the subscription. Payments included in the
measurement of the liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of its IT subscription
and will remeasure the right-to-use IT subscription asset and liability if certain changes occur that are
expected to significantly affect the amount of the subscription liability.
Right-to-use IT subscription assets are reported with other capital assets and IT subscription liabilities are
reported with long-term debt on the statement of net position.
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 47
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 assets 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 8).
Deferred Inflows of Resources
Deferred inflows of resources represent an acquisition of net assets 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
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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. The lease related deferred inflows is the unamortized portion of the lease receivable. Deferred inflows
of resources consist of property tax receivable, lease related deferred inflows, 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, lease related deferred inflows, 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 custodial funds. This is formalized in a separate budgetary report, the Financial Plan.
This budget is adopted on or before April 30 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.
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.
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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 $12,441,938 in revenues and other
financing sources and by $83,423,121 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 9).
Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities, and
deferred inflows of resources. Net investment in capital assets consists of capital assets, net of
accumulated depreciation and amortization, reduced by the outstanding balances of any borrowings used
for the acquisition, construction, or improvement of those assets. Net investment in capital assets excludes
unspent bond proceeds. As of June 30, 2023, there were unspent bond proceeds totaling $21,842,609 in
governmental activities. Net position is reported as restricted when there are limitations imposed on its
use through enabling legislation or through external restrictions imposed by creditors, grantors, or laws or
regulations of other governments.
Net position restricted through enabling legislation consists of $4,655,000 for employee benefits,
$15,288,000 for capital projects, $7,246,000 debt service, $260,000 for police, $3,313,000 for grant
agreements, and $9,286,000 for other purposes.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, and then unrestricted resources as they are needed.
2. Cash and Pooled Investments
The City’s deposits in banks at June 30, 2023 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.
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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
$5,951,734, the Federal Farm Credit Bank Note securities of $3,141,260, the Federal National Mortgage
Association securities of $8,279,660, the Federal Home Loan Bank securities of $60,358,627 and the United
States Treasury securities of $20,254,204 were 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 $202,253, 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 $1 per unit net asset value since inception and were registered with the Securities
and Exchange Commission (SEC).
Interest rate risk - The City’s investment policy limits the investment of operating funds to investments that
mature within 397 days. The portion of operating funds in excess of 33% of operating funds may be invested
in certificates of deposit which mature within 63 months or less. Funds not identified as operating funds
may be invested in instruments with maturities longer than 397 days.
Credit risk. State law limits investments to commercial paper and corporate bonds to the top two ratings
issued by nationally recognized statistical rating organizations. It is the City’s policy to comply with rating
restrictions. The investment in Iowa Public Agency Investment Trust is not rated by Moody’s Investors
service as it is a state security that is backed by the full faith and credit of the issuing government and is not
subject to credit risk.
Concentration of credit risk. The City investment policy limits the amount that may be invested in any one
issuer to a maximum amount approved by the City Council.
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investment earnings
associated with other funds. These funds are the Employee Benefits, Other Shared Revenue and Grants,
and Sanitation funds.
At June 30, 2023 the City of Iowa City had the following investments:
Fair
Investment Value Maturities
Federal Home Loan Mortgage Corporation Notes 5,951,734$ July 2023 to February 2025
Federal Farm Credit Bank Notes 3,141,260 December 2024 to September 2040
Federal National Mortgage Association 8,279,660 November 2023 to June 2029
Federal Home Loan Bank 60,358,627 July 2023 to January 2027
United States Treasury 20,254,204 December 2023 to January 2024
97,985,484$
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3. Interfund Balances and Transfers
Interfund transfers for the year ended June 30, 2023, 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.
Capital Projects
Bridge, Street
Other Capital Projects and Traffic
Shared Revenue Employee Other Control Nonmajor
General and Grants Benefits Construction Construction Governmental
Transfer to:
General -$ 92,426$ 12,843,344$ -$ -$ 43,345$
Other Shared Revenue
and Grants 1,002,662 - 647,269 - - -
Debt Service 20,052 - - - - 1,769,805
Capital Projects
Other Construction 1,704,759 443,172 - - - 118,259
Capital Projects
Bridge, Street and
Traffic Control Construction 412,878 2,615,000 - - - -
Nonmajor Governmental 167,161 315,383 - - - -
Transit 4,119,501 - - - - -
Wastewater Treatment 2,232 - - - 7,360 -
Water 1,936 - - - 547,179 -
Sanitation/Landfill 606,538 - - - - -
Stormwater 1,232 - - 35,000 1,452,747 -
Nonmajor Enterprise 100,000 - - - - -
Internal Service 348,065 191,850 - - 13,950 -
Total Transfer to 8,487,016$ 3,657,831$ 13,490,613$ 35,000$ 2,021,236$ 1,931,409$
Transfer from
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Wastewater Housing Nonmajor Internal Total
Treatment Water Sanitation Stormwater Authority Enterprise Service Transfer from
-$ -$ -$ -$ 54,791$ -$ -$ 13,033,906$
- - - - - - - 1,649,931
- - - - - - - 1,789,857
- - - 326,039 - - 1,000,000 3,592,229
33,112 820,661 - 76,626 - - 123,847 4,082,124
- - - - - - - 482,544
- - - - - - - 4,119,501
- - - - - - - 9,592
- - - - - - - 549,115
- - - - - - - 606,538
- - - - - - - 1,488,979
- - - - - - - 100,000
298,510 - 438,477 - - 29,122 - 1,319,974
331,622$ 820,661$ 438,477$ 402,665$ 54,791$ 29,122$ 1,123,847$ 32,824,290$
Transfer from
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Interfund balances for the year ended June 30, 2023, consisted of the following:
Due from
General
Due to:
Nonmajor Governmental $ 3,312
Nonmajor Enterprise 210,536
Total $ 213,848
Interfund balances at June 30, 2023, include due to/from other funds, which represent amounts for negative
cash balance funding. The $3,312 advance to Nonmajor Governmental Funds and the $210,536 advance
to the Nonmajor Enterprise Funds are expected to be repaid within the next year.
Advances from
Debt
Service Sanitation Total
Advances to:
Other Shared Revenue
and Grants $ 34,555 $ - $ 34,555
Other Construction - 2,811,049 2,811,049
Nonmajor Enterprise - 1,389,014 1,389,014
Total $ 34,555 $ 4,200,063 $ 4,234,618
Interfund balances at June 30, 2023, include advances to/from other funds, which represent amounts for
construction loans and a revenue bond redemption loan. $17,585 of the $34,555 advance to the Other Shared
Revenue and Grants Fund is not expected to be repaid within the next year. $2,619,085 of the $2,811,049
advance to the Other Construction Fund is not expected to be repaid within the next year. $914,190 of the
$1,389,014 advance to the Nonmajor Enterprise Funds is not expected to be repaid within the next year.
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4. Lease Receivable
During the year ended June 30, 2023, the City recognized the following related to its non-regulated leases
in which the maximum possible lease term is noncancelable by both the lessee and the lessor and is more
than 12 months. The leases are not considered principal ongoing operations of the City.
Governmental Activities:
On October 6, 2015, the City entered into an agreement to lease building space in the Library building.
The initial term of the lease was for a four-year term with an extension of an additional four-year term.
The City believes it is more likely than not that the term will be for eight years. The monthly rent is
$2,000. The City recognized $23,125 in lease revenue and $875 in interest revenue during the current
fiscal year related to this lease. As of June 30, 2023, the City’s receivable for lease payments was
$15,817. The City has a deferred inflow of resources associated with this lease of $15,817 that will be
recognized as revenue over the lease term.
On November 10, 2015, the City entered into an agreement to lease space for fiber. The initial term of the
lease was for a ten-year term with no option of extension. The City believes it is more likely than not that
the term will be for ten years. The annual rent is $20,793. The City recognized $18,984 in lease revenue
and $1,809 in interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the
City’s receivable for lease payments was $39,740. The City has a deferred inflow of resources associated
with this lease of $39,740 that will be recognized as revenue over the lease term.
Business-type Activities:
On August 16, 2012, the City entered into an agreement to lease building space in the Court Street
Transportation Center. The initial term of the lease was for a three-year term with an extension of up to
five additional three-year terms. The City believes it is more likely than not that the term will be for
eighteen years. The monthly rent is $1,450. The City recognized $13,763 in lease revenue and $3,637 in
interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s
receivable for lease payments was $110,605. The City has a deferred inflow of resources associated with
this lease of $110,605 that will be recognized as revenue over the lease term.
On July 1, 2015, the City entered into an agreement to lease building space in the Court Street
Transportation Center. The initial term of the lease was for a five-year term with an extension of an two
additional five-year terms. The City believes it is more likely than not that the term will be for fifteen
years. The monthly rent is $9,077.43. The City recognized $84,701 in lease revenue and $24,223 in
interest revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s
receivable for lease payments was $740,374. The City has a deferred inflow of resources associated with
this lease of $740,374 that will be recognized as revenue over the lease term.
On February 11, 2021, the City entered into an agreement to lease building space in the Court Street
Transportation Center. The initial term of the lease was for a three-year term with an extension of up to
four additional five-year terms. The City believes it is more likely than not that the term will be for fifteen
years. The monthly rent is $3,445. The City recognized $21,586 in lease revenue and $19,754 in interest
revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for
lease payments was $629,611. The City has a deferred inflow of resources associated with this lease of
$629,611 that will be recognized as revenue over the lease term.
55
On February 21, 2012, the City entered into an agreement to lease building at the East Side Recycling
Center. The initial term of the lease was for a ten-year term with an extension of up to three additional
five-year terms. The City believes it is more likely than not that the term will be for twenty-five years.
The monthly rent is $1,677.58. The City recognized $13,037 in lease revenue and $7,094 in interest
revenue during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for
lease payments was $223,223. The City has a deferred inflow of resources associated with this lease of
$223,223 that will be recognized as revenue over the lease term.
On February 21, 2012, the City entered into an agreement to lease building at the East Side Recycling
Center. The initial term of the lease was for a ten-year term with an extension of up to three additional
five-year terms. The City believes it is more likely than not that the term will be for twenty-five years.
The monthly rent is $322.50. The City recognized $2,506 in lease revenue and $1,364 in interest revenue
during the current fiscal year related to this lease. As of June 30, 2023, the City’s receivable for lease
payments was $42,913. The City has a deferred inflow of resources associated with this lease of $42,913
that will be recognized as revenue over the lease term.
The City has four leases for land use at and around the Airport that were entered into agreement between
February 12, 1991 and November 1, 2018. The initial terms of the leases range between five and eighty
years with two of the agreements having options to extend between five and ten years. The City believes
it is more likely than not that the terms will be between ten and eighty years. The annual rent for all four
of these leases is $17,455. The City recognized $10,987 in lease revenue and $6,603 in interest revenue
during the current fiscal year related to these leases. As of June 30, 2023, the City’s receivable for lease
payments was $213,974. The City has a deferred inflow of resources associated with these leases of
$213,974 that will be recognized as revenue over the lease terms.
The City has eight leases for hangar use at the Airport that were entered into agreement between April 12,
2012 and October 1, 2022. The initial terms of these leases range between one and thirty years with two
of the leases having the option to renew up to another ten years. The City believes it is more likely than
not that the terms will be between one and thirty years. The monthly rent for these leases total $5,248.
The City recognized $49,112 in lease revenue and $13,867 in interest revenue during the current fiscal
year related to these leases. As of June 30, 2023, the City’s receivable for lease payments was $347,683.
The City has a deferred inflow of resources associated with these leases of $347,683 that will be
recognized as revenue over the lease terms.
56
5. Capital Assets
Capital asset activity for the year ended June 30, 2023, was as follows:
Beginning
July 1, 2022
Acquisitions
and
Transfers
Disposals
and
Transfers
Balance
June 30, 2023
Governmental activities:
Capital assets, not being depreciated:
Land 32,875,550$ - 333,450$ 32,542,100$
Construction in progress 9,468,544 12,520,675 2,184,039 19,805,180
Total capital assets, not being depreciated 42,344,094 12,520,675 2,517,489 52,347,280
Capital assets, being depreciated:
Buildings 68,200,272 730,842 200,489 68,730,625
Improvements other than buildings 8,183,976 10,000 - 8,193,976
Machinery and equipment 62,884,478 7,134,917 3,300,521 66,718,874
IT subscriptions 1,077,152 - - 1,077,152
Infrastructure 224,955,606 1,613,371 31,000 226,537,977
Total capital assets being depreciated 365,301,484 9,489,131 3,532,010 371,258,605
Less accumulated depreciation/amortization for:
Buildings 32,818,224 1,701,252 186,247 34,333,229
Improvements other than buildings 4,830,720 266,582 - 5,097,302
Machinery and equipment 28,951,058 4,920,649 3,095,150 30,776,557
IT Subscriptions 550,934 156,185 - 707,119
Infrastructure 63,136,642 4,591,076 31,000 67,696,718
Total accumulated depreciation/amortization 130,287,578 11,635,745 3,312,397 138,610,925
Total capital assets, being depreciated, net 235,013,906 (2,146,614) 219,613 232,647,679
Governmental activities capital assets, net 277,358,000$ 10,374,061$ 2,737,102$ 284,994,959$
Business-type activities:
Capital assets, not being depreciated:
Land 30,317,185$ 640,000$ -$ 30,957,185$
Construction in progress 10,079,635 8,520,897 3,547,512 15,053,020
Total capital assets, not being depreciated 40,396,820 9,160,897 3,547,512 46,010,205
Capital assets, being depreciated:
Buildings 136,798,532 427,186 - 137,225,718
Improvements other than buildings 11,789,633 9,965 - 11,799,598
Machinery and equipment 43,745,186 13,393 2,298,478 41,460,101
IT subscriptions - 348,686 - 348,686
Infrastructure 348,280,947 4,571,445 - 352,852,392
Total capital assets being depreciated 540,614,298 5,370,675 2,298,478 543,686,495
Less accumulated depreciation/amortization for:
Buildings 78,110,878 3,144,730 - 81,255,608
Improvements other than buildings 8,456,430 245,629 - 8,702,059
Machinery and equipment 26,310,547 1,710,226 2,065,744 25,955,029
Infrastructure 134,629,634 7,575,180 - 142,204,814
Total accumulated depreciation/amortization 247,507,489 12,675,765 2,065,744 258,117,510
Total capital assets, being depreciated, net 293,106,809 (7,305,090) 232,734 285,568,985
Business-type activities capital assets, net 333,503,629$ 1,855,807$ 3,780,246$ 331,579,190$
57
6. Long Term Debt
Changes in Debt for Bonds
Bond debt activity for the year ended June 30, 2023, was as follows:
Depreciation/Amortization expense was charged to functions as follows:
Governmental activities:
Public safety 1,695,936$
Public works 5,586,922
Culture and recreation 3,824,753
Community and economic development 64,254
General government 463,880
Total depreciation/amortization expense - governmental activities 11,635,745$
Business-type activities:
Transit 1,252,540$
Wastewater treatment 4,307,705
Water 2,305,577
Sanitation 801,917
Stormwater 1,474,577
Housing authority 255,046
Nonmajor enterprise 2,278,403
Total depreciation expense - business-type activities 12,675,765$
Due Within
July 1, 2022 Issues Retirements June 30, 2023 One Year
Governmental activities:
General obligation bonds 53,935,000$ 9,105,000$ 10,125,000$ 52,915,000$ 10,075,000$
Plus: Unamortized
Premium 2,888,948 894,133 478,990 3,304,091 481,593
Total general obligation bonds 56,823,948 9,999,133 10,603,990 56,219,091 10,556,593
Revenue bonds 11,840,000 - 960,000 10,880,000 955,000
Less: Unamortized
Discounts 21,240 - 21,240 - -
Total revenue bonds 11,818,760 - 938,760 10,880,000 955,000
68,642,708$ 9,999,133$ 11,542,750$ 67,099,091$ 11,511,593$
Business-type activities:
Revenue bonds 7,465,000$ -$ 3,840,000$ 3,625,000$ 1,745,000$
Plus: Unamortized
Premium 180,204 - 103,258 76,946 35,234
Total revenue bonds 7,645,204$ -$ 3,943,258$ 3,701,946$ 1,780,234$
58
General Obligation Bonds
Various issues of general obligation bonds totaling $52,915,000 are outstanding as of June 30, 2023. The
bonds have interest rates ranging from 1.80% to 5.00% and mature in varying annual amounts ranging from
$340,000 to $1,195,000 per issue, with the final maturities due in the year ending June 30, 2033. 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, 2023, the following unmatured revenue bond issues are outstanding:
Taxable Urban
Water Renewal
Original issue amount $ 9,560,000 $ 12,805,000
Interest rates 1.5% to 5.0% 3.0%
Annual maturities $ 520,000 to $ 725,000 to
$ 1,225,000 $ 955,000
Amount outstanding $ 3,625,000 $ 10,880,000
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30 Prin c ipal Interest
2024 10,075,000$ 1,829,490$
2025 8,545,000 1,483,990
2026 7,775,000 1,186,178
2027 6,825,000 900,803
2028 5,780,000 657,777
2029-2033 13,915,000 1,053,672
Total 52,915,000$ 7,111,910$
Governmental Activities
Fiscal Year Ending
June 30 Principal Interest Principal Interest
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 825,000 240,750 - -
2028 725,000 216,000 - -
2029-2033 3,880,000 744,150 - -
2034-2038 2,595,000 157,200 - -
Total 10,880,000$ 2,251,500$ 3,625,000$ 88,150$
Governmental Activities Business-type Activities
59
The revenue bond ordinances required that 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. Water Revenue bonds – 10% of the
original principal amounts of all related bond issues.
(c) Improvement Reserve $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, 2023, the Water Fund had net revenues of $4,276,000 and the amount of
principal and interest due was $1,852,000.
60
Summary of Bond Issues
General obligation and revenue bonds payable at June 30, 2023, are comprised of the following issues:
(1) This bond issue is an advance refunding of portions of the September 2006 and May 2007 General
Obligation Bonds.
(2) This bond issue refunded the October 2008 Water Revenue Bonds.
(3) This bond issued refunded the May 2009 Water Revenue Bonds.
Date of Amount Interest Final Outstanding
Issue Issued Rates Maturity June 30, 2023
General Obligation Bonds:
Refunded Multi-Purpose (1) June 2014 11,980,000 2.0 - 3.0 6/24 1,030,000
Multi-Purpose June 2015 7,785,000 2.0 - 2.25 6/25 1,730,000
Multi-Purpose June 2016 8,795,000 2.0 - 3.0 6/26 3,030,000
Multi-Purpose June 2017 9,765,000 2.0 - 2.5 6/27 4,165,000
Multi-Purpose June 2018 8,895,000 1.8 - 2.65 6/28 4,690,000
Multi-Purpose June 2019 12,535,000 2.0 - 2.25 6/29 5,625,000
Multi-Purpose June 2020 12,145,000 2.0 - 5.0 6/30 5,545,000
Multi-Purpose June 2021 11,325,000 2.0 - 5.0 6/31 9,055,000
Multi-Purpose June 2022 10,255,000 3.3 - 5.0 6/32 8,940,000
Multi-Purpose June 2023 9,105,000 3.0 - 5.0 6/33 9,105,000
Total General Obligation Bonds 52,915,000$
Date of Amount Interest Final Outstanding
Issue Issued Rates Maturity June 30, 2023
Revenue Bonds:
Refunded Water Bonds (2)June 2016 3,650,000 1.5 - 5.0 7/24 1,045,000
Refunded Water Bonds (3)June 2017 5,910,000 2.0 - 2.25 7/25 2,580,000
Taxable Urban Renewal Sept. 2016 12,805,000 3.0 6/36 10,880,000
Total Revenue Bonds 14,505,000$
67,420,000$
61
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. The City has not extended any additional commitments beyond the collateral, the
payments from the private sector entities on the underlying mortgage loans, and maintenance of the tax-
exempt status of the conduit debt obligation were extended by the City for and of the bonds.
As of June 30, 2023, there were three series of Industrial Development Revenue Bonds outstanding, with
an aggregate principal amount payable of $15,038,882.
Debt Legal Compliance
Legal Debt Margin:
As of June 30, 2023, 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 $ 7,113,609
Utilities 134,787
Total valuation $ 7,248,396
Debt limit, 5% of total assessed valuation $ 362,420
Debt applicable to debt limit:
General obligation bonds 52,915
Urban renewal revenue bonds 10,880
Notes payable (Note 8) 211
Subscription liabilities (Note 8) 317
Other legal indebtedness (TIF rebates)(Note 11) 31,784
Total net debt applicable to limit 96,107
Legal debt margin $ 266,313
7. 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, 2023, the City had the following balances
related to its pension accounts:
IPERS MFPRSI Total
Net Pension Liability 15,814,014$ 18,975,938$ 34,789,952$
Deferred Inflows 2,144,843 1,495,630 3,640,473
Deferred Outflows 4,348,052 4,262,173 8,610,225
Pension Expense (257,961) 1,467,604 1,209,643
62
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.
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
63
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.
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, 2023.
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 23.90% for the year ended June 30, 2023.
The City’s contributions to MFPRSI for the year ended June 30, 2023, was $3,009,101.
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, 2023.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2023, the City reported a liability of $18,975,938 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2022, 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, 2022, the City’s proportion
was 3.379084% which was a decrease of 0.150136% from its proportions measured as of June 30, 2021.
64
For the year ended June 30, 2023, the City recognized pension expense of $1,467,604. At June 30, 2023,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
$3,009,101 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Actuarial Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Total
-
21,480
224,832
1,246,398
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
City contributions and proportionate share of
contributions
Change of assumptions
Deferred Outflows of
Resources
1,178,362$
53,230
Differences between expected and actual
experience
Deferred Inflows of
Resources
24,400$
-
City contributions subsequent to the measurement
date 3,009,101
4,262,173$ 1,495,630$
-
Year Ended
June 30, 2024
June 30, 2025
J une 30, 2026
June 30, 2027
June 30, 2028
(721,937)
2,388,612
(7,104)
Total
(242,558)$
(1,638,438)
(263,691)$
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
65
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the period from July 1, 2010 to June 30, 2020.
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
Broad Fixed Income 3.5 %
Emerging Markets 7.2
Broad U.S. Equity 6.7
Managed Futures 5.1
Global Infrastructure 6.8
Global Equity 6.8
Private Credit 8.6
Private Equity 12.0
Opportunistic Real Estate 11.0
Real Estate-Core 6.4
Broad non-US Equity 7.0
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:34,342,911$ 18,975,938$ 6,244,192$
66
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, 2023, 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.
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 2023, 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, 2023 were $3,492,754
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2023, the City reported a liability of $15,814,014 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2022, 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, 2022, the City’s proportion
was 0.418565% which was an increase of 0.579059% from its proportions measured as of June 30, 2021.
For the year ended June 30, 2023, the City recognized pension income of $257,961. At June 30, 2023, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Total
235,009
-
Deferred Inflows of
Resources
Deferred Outflows of
Resources
Differences between expected and actual
experience 701,033$ 216,617$
2,144,843$
Change of assumptions 13,418 377
Net difference between projected and actual
earnings on pension plan investments - 1,692,840
Changes in proportion and differences between
City contributions and proportionate share of
contributions 140,847
City contributions subsequent to the measurement
date 3,492,754
4,348,052$
68
$3,492,754 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
There were no non-employer contributing entities to IPERS.
Actuarial Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
The actuarial assumptions used in the June 30, 2022, valuation was based on the results of a quadrennial
experience study covering the period July 1, 2017 through June 30, 2021.
Mortality rates were based on the PubG-2010 Mortality tables with future mortality improvements modeled
using MP-2021 generational adjustments.
Year Ended
June 30, 2024
June 30, 2025
J une 30, 2026
June 30, 2027
June 30, 2028
(1,550,589)$
(1,194,876)
(1,289,545)$
45,540
Total
(2,075,813)
3,486,193
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
69
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 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 7.0%. 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, 2023, there were no amounts due to IPERS.
Asset Class
Core Plus Fixed Income 20.0 %1.66 %
Domestic Equity 22.0 3.57
International Equity 17.5 4.79
Private Equity 13.0 7.57
Private Real Assets 8.5 3.55
Global Smart Beta Equity 6.0 4.16
Public Credit 4.0 3.77
Private Credit 8.0 3.63
Cash 1.0 0.77
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:29,463,410$ 15,814,014$ 3,785,145$
70
8. 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.
The City has entered into various subscription-based information technology agreements for software
programs. The agreements require annual payments varying from $5,000 to $65,000 over 3 to 12 years with
an interest rate of 2.99% and final payments due January 2027. During the year ended June 30, 2023,
principal and interest paid were $126,395 and $13,098 respectively. Future principal and interest payments
as of June 30, 2023, are as follows:
Changes in Long-Term Liabilities - Notes Payable
Note Payable activity for the year ended June 30, 2023, was as follows:
Due Within
July 1, 2022 Issues Retirements June 30, 2023 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, 2023, was as follows:
Due W ithin
July 1, 2022 Issues Retirements June 30, 2023 One Year
Governmental activities: $ 2,587,124 1,501,930$ 1,460,085$ 2,628,969$ 1,483,149$
Business-type activities: $ 834,602 474,480$ 489,507$ 819,575$ 480,795$
Changes in Long-Term Liabilities - Subscription Based Information Technology Liability
Subscription liability activity for the year ended June 30, 2023, was as follows:
Due W ithin
July 1, 2022 Issues Retirements June 30, 2023 One Year
Governmental activities: $ 443,158 -$ 126,395$ 316,763$ 134,586$
Principal Interest
134,586$ 9,288$
128,505 5,250
38,633 1,394
15,039 450
316,763$ 16,382$
2024
2025
2026
2027
Total
Fiscal Year Ending
June 30
Governmental Activities
71
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.
The estimated liability for landfill closure and post-closure care costs as of June 30, 2023, is $12,978,256,
which is based on 58.3% usage (filled) of the landfill and is included in accrued liabilities within the
Sanitation Fund. It is estimated that an additional amount of approximately $9,282,905 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, 2023, was determined by a licensed professional
engineer and approximated at $22,261,161. 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,
2023. 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, 2023, the Sanitation Fund had $15,402,392 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.
Changes in Long-Term Liabilities - Landfill Closure Post-closure Care Costs
Landfill Closure Post-closure care activity for the year ended June 30, 2023, was as follows:
Due Within
July 1, 2022 Issues Retirements June 30, 2023 One Year
Business-type activities: $ 12,226,988 $ 751,268 -$ $ 12,978,256 -$
72
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, 2023, the following employees were
covered by the benefit terms:
Total OPEB Liability: The City’s total OPEB liability of $8,730,093 was measured as of June 30, 2023
and was determined by an actuarial valuation as of that date.
Actuarial Assumptions: The total OPEB liability in the June 30, 2023 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 4.13% 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-2021. Mortality rates for public safety participants are from the
SOA Pub-2010 Public Safety Headcount Weighted Mortality Table fully generational using Scale MP-
2021. Mortality rates for surviving spouses are from the SOA Pub-2010 Continuing Survivor Headcount
Weighted Mortality Table fully generational using Scale MP-2021. Annual retirement probabilities are
based on varying rates by age and turnover probabilities mirror those used by IPERS and MFPRSI.
Inactive employees or beneficiaries currently receiving benefit payments 54
Active employees 586
Total 640
Rate of inflation 2.60% per annum
(effective June 30, 2023)
Rates of salary increases 3.25% per annum based on 2.60% inflation and 0.65%
(effective June 30, 2023)real wage inflation
Discount rate 4.13%, compounded annually, including inflation
(effective June 30, 2023)
Healthcare cost trend rate 7.00% initial rate decreasing by .5% annually to an ultimate
(effective June 30, 2023)rate of 4.50%
73
The actuarial assumptions used in the June 30, 2023 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 4.09% in fiscal year 2022 to 4.13% in
fiscal year 2023.
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 (3.13%) or 1% higher (5.13%) 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 (6.00%) or 1% higher (8.00%) than
the current healthcare cost trend rate.
Total OPEB
Liability
Total OPEB liability beginning of year 8,123,615$
Changes for the year:
Service Cost 617,419
Interest 353,028
Difference between expected and actual
experience (118,211)
Changes in assumptions (24,446)
Benefit payments (221,312)
Net changes 606,478
Total OPEB liability end of year 8,730,093$
1% Decrease
(3.13%)
Discount Rate
(4.13%)
1% Increase
(5.13%)
Total OPEB liability 9,356,967$ 8,730,093$ 8,136,987$
1% Decrease
(6.0%)
Healthcare Cost
Trend Rate (7.0%)
1% Increase
(8.00%)
Total OPEB liability 7,735,554$ 8,730,093$ 9,905,232$
74
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB: For the year ended June 30, 2023, the City recognized OPEB expense of $957,004. At June 30,
2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following resources:
The amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized as OPEB expense as follows:
For the governmental activities, OPEB liability is generally liquidated by the General Fund, Community
Development Block Grant Fund and Other Shared Revenue and Grants Fund
9. Fund Equity
Fund balances for the governmental funds are reported in classifications that comprise a hierarchy based
on the extent to which the government honors constraints on the specific purposes for which amounts in
those funds can be spent.
• The Nonspendable classification contains amounts not in spendable form or legally or contractually
required to be maintained intact.
• Restricted amounts contain restraint on their use externally imposed by creditors, grantors,
contributors, or laws or regulations of other governments; or imposed by law through constitutional
provisions or enabling legislation.
• Committed amounts can only be used for specific purposes imposed by formal action of the
government’s highest level of decision-making authority. The highest level of decision-making
authority is the City Council and it takes a resolution to establish, modify or rescind a fund balance
commitment.
Total 1,620,979$ (2,375,946)$
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience 901,764$ (750,746)$
Change of assumptions 719,215 (1,625,200)
Year Ended
June 30, 2024
June 30, 2025
June 30, 2026
June 30, 2027
June 30, 2028
Thereafter
(73,991)
(754,967)$
(13,443)$
(13,443)
(13,443)
(13,438)
(627,209)
Total
• 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.
The nonmajor governmental fund, Economic Development Fund, has a deficit unassigned fund balance of
$251,016. The deficit will be resolved with future property taxes.
10. 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, 2022 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 three 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.
Components of Fund Balance
Bridge,
Other Street and
Shared Traffic Other
Revenue and Employee Other Control Debt Governmental
Round to nearest $General Grants Benefits Construction Construction Service Funds Total
Nonspendable:
Perpetual Care Principal 69,000$ -$ -$ -$ -$ -$ -$ 69,000$
Inventory - 268,620 - - - - - 268,620
Property Held for Resale 2,057,805 - - - - - - 2,057,805
Total Nonspendable 2,126,805 268,620 - - - - - 2,395,425
Restricted for:
Public Safety 414,586 - - - - - - 414,586
Debt Service - - - - - 7,425,922 - 7,425,922
GO Bond Projects - - - 13,927,615 15,362,075 - - 29,289,690
State Funding - 6,170,699 - - - - - 6,170,699
Grant Agreement - - - - - - 3,389,388 3,389,388
Affordable Housing - 7,399,710 - - - - - 7,399,710
Economic Development - - - - - - 433,583 433,583
Notes Receivable 1,287,924 - - - - - - 1,287,924
Public Safety Employee
Benefits - - 4,287,578 - - - - 4,287,578
Other Restricted 607,206 2,295,791 - - - - 536,797 3,439,794
Total Restricted 2,309,716 15,866,200 4,287,578 13,927,615 15,362,075 7,425,922 4,359,768 63,538,874
Assigned to:
Library Programs 1,341,367 - - - - - - 1,341,367
Replacement and Acquisition
Reserves 18,280,155 - - - - - - 18,280,155
Other Assigned 844 - - - - - - 844
Total Assigned 19,622,366 - - - - - - 19,622,366
Unassigned:37,977,002 - - - - - (251,016) 37,725,986
Total Fund Balances 62,035,889$ 16,134,820$ 4,287,578$ 13,927,615$ 15,362,075$ 7,425,922$ 4,108,752$ 123,282,651$
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, 2023 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, 2023
and 2022 are as follows:
Current-Year
Beginning-of- Claims and Balance at
Fiscal-Year Changes in Claim Fiscal
Liability Estimates Payments Year-End
2021 - 2022 $ 3,273,000 $ (455,000) $ 76,000 $ 2,741,000
2022 - 2023 2,741,000 255,000 553,000 2,443,000
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 $15,176,400. 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, 2023 and 2022 are as follows:
Current-Year
Beginning-of- Claims and Balance at
Fiscal-Year Changes in Claim Fiscal
Liability Estimates Payments Year-End
2021 - 2022 $ 458,000 $ 9,438,000 $ 9,313,000 $ 583,000
2022 - 2023 583,000 10,532,000 10,490,000 625,000
77
11. 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 $31,784,289 exist, of which $2,032,821 is expected to be paid in the next fiscal year. These items
are expensed in the period in which they are paid. There were payments made in the current fiscal year in
the amount of $1,980,692. No liability is recognized due to the fact that the agreements are conditional and
the payments are to be funded by future property taxes receivable on the project.
The total outstanding contractual commitments as of June 30, 2023 are as follows:
Project Amount
Bridge, street and traffic Paving and Bridge Construction,
control construction Engineering Design and Consulting 12,907,855$
Other construction Public Works & Culture and Recreation Construction 3,604,964
Parking Parking Facility Restoration Repair 673,019
Wastewater Sewer Construction & Influent Rake Replacement 2,437,127
Water Water Construction & Peninsula Well Field Power
Redundancy Project 412,190
Tran sit Transit Bus Sign Replacements/Transit Amenities 218,119
Airport Runway Obstruction Mitigation & Runway Relocation 212,087
Landfill
Lanfill Facility Replacement and Landfill Gas
Infrastructure 2,846,517
Stormwater Stormwater System Improvements & Storm Sewer 1,787,447
Replacements
25,099,325$
Fund
78
12. 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.
13. 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, 2023, $815,160.37 of property tax was diverted from the City under the urban
renewal and economic development projects.
Tax Abatements of Other Entities
Property tax revenues of the City were not reduced by any amount for the year ended June 30, 2023 under
agreements entered into by any entities.
14. Accounting Change/Restatement
Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information
Technology Agreements (SBITA), was implemented during fiscal year 2023. The new requirements require
the reporting of certain right-to-use subscription-based IT arrangements and liabilities which were
previously not reported. The beginning net position of governmental activities was restated as follows:
Net position June 30, 2022, Subscription asset Subscription accumulated Subscription liability Net position July 1, 2022,
as previously reported at June 30, 2022 amortization at June 30, 2022 at June 30, 2022 as restated
Governmental 274,658$ 469$ (154)$ (272)$ 274,701$
Internal Service 32,032 608 (397) (171) 32,072
Total Governmental 306,690$ 1,077$ (551)$ (443)$ 306,773$
79
15. New Governmental Accounting Standards Board (GASB) Standards
The City adopted the following statements during the year ended June 30, 2023:
Governmental Accounting Standards Board Statement No. 91, Conduit Debt Obligations. This Statement
clarifies the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is
not a liability of the issuer; establishing standards for accounting and financial reporting of additional
commitments and voluntary commitments extended by issuers and arrangements association with conduit
debt obligations; and improving required note disclosures. This Statement requires issuers to disclose
general information about their conduit debt obligations organized by type of commitment, including the
aggregate outstanding principal amount of the issuers’ conduit debt obligations and a description of each
type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt
obligations also should disclose information about the amount recognized and how the liabilities changed
during the reporting period.
Governmental Accounting Standards Board Statement No. 94, Public-Private and Public-Public
Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to
improve financial reporting by addressing issues related to public-private and public-public partnership
arrangements (PPPs).
Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information
Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements (SBITAs) for government end users
(governments). This Statement 1) defines a SBITA; 2) establishes that a SBITA results in a right-to-use
subscription asset – an intangible asset – and a corresponding subscription liability; 3) provides the
capitalization criteria for outlays other than subscription payments, including implementation costs of a
SBITA; and 4) requires note disclosures regarding a SBITA.
Governmental Accounting Standards Board Statement No. 99, Omnibus 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 (1) practice issues that have been identified during
implementation and application of certain GASB Statements and (2) accounting and financial reporting
for financial guarantees.
Other than the restatement for the implementation of GASB Statement No. 96 disclosed in Note 14, the
implementation of the above statements did not have a material impact on the City’s Financial Statements.
The Governmental Accounting Standards Board (GASB) has issued two statements not yet implemented
by the City. The statements, which might impact the City’s financial statements, are as follows:
Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No.
62, will be effective for fiscal year ending June 30, 2024. The primary objective of this Statement is to
enhance accounting and financial reporting requirements for accounting changes and error corrections to
provide more understandable, reliable, relevant, consistent, and comparable information for making
decisions or assessing accountability.
Statement No. 101, Compensated Absences, will be effective for fiscal year ending June 30, 2025. The
objective of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences. That objective is achieved by
aligning the recognition and measurement guidance under a unified model and by amending certain
previously required disclosures.
The City’s management has not yet determined the effect these statements will have on the City’s financial
statements.
80
8181
Governmental
Fund Types Enterprise Fund
Actual Budgetary Types Actual Total Actual
Basis Budgetary Basis Budgetary Basis
Revenues:
Property taxes 66,682$ -$ 66,682$
Delinquent property taxes 3 - 3
Tax increment financing taxes 4,086 - 4,086
Other city taxes 3,839 - 3,839
Special assessments - - -
Licenses and permits 2,854 - 2,854
Intergovernmental 23,404 17,541 40,945
Charges for services 6,770 43,570 50,340
Use of money and property 3,878 3,622 7,500
Miscellaneous 3,874 656 4,530
Total revenues 115,390 65,389 180,779
Expenditures/Expenses:
Public safety 29,378 - 29,378
Public works 10,357 - 10,357
Health and social services 680 - 680
Culture and recreation 16,378 - 16,378
Community and economic development 14,341 - 14,341
General government 11,303 - 11,303
Debt service 13,166 - 13,166
Capital outlay 22,950 - 22,950
Business-type - 67,112 67,112
Total expenditures/expenses 118,553 67,112 185,665
Excess (deficiency) of revenues over
(under) expenditures/expenses (3,163) (1,723) (4,886)
Other financing sources and uses, net 7,268 4,606 11,874
Net change in fund balances 4,105 2,883 6,988
Balances, beginning of year 129,668 100,723 230,391
Balances, end of year 133,773$ 103,606$ 237,379$
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, 2023
(dollar amounts expressed in thousands)
Budgetary Basis
82
Final to Actual
Variance -
Positive
Original Final (Negative)
66,474$ 66,474$ 208$
- - 3
4,114 4,114 (28)
2,880 2,880 959
1 1 (1)
2,010 2,010 844
32,541 47,348 (6,403)
50,693 50,353 (13)
2,599 2,732 4,768
3,434 3,910 620
164,746 179,822 957
29,233 29,779 401
12,026 12,311 1,954
680 680 -
16,828 17,062 684
9,455 31,072 16,731
12,143 13,462 2,159
12,953 13,172 6
19,765 57,521 34,571
81,516 89,119 22,007
194,599 264,178 78,513
(29,853) (84,356) 79,470
28,084 11,605 269
(1,769) (72,751) 79,739$
158,528 230,391
156,759$ 157,640$
Budgeted Amounts
83
Accrual Modified Accrual
Budget Basis Adjustments Basis
Revenues 115,390$ (3,196)$ 112,194$
Expenditures 118,553 (7,097) 111,456
Net (3,163) 3,901 738
Other financing sources and uses, net 7,268 (724) 6,544
Beginning Fund Balances 129,668 (13,666) 116,002
Ending Fund Balances 133,773$ (10,489)$ 123,284$
Accrual Accrual
Budget Basis Adjustments Basis
Revenues 65,389$ 875$ 66,264$
Expenditures 67,112 (1,247) 65,865
Net (1,723) 2,122 399
Other financing sources and uses, net 4,606 191 4,797
Beginning Fund Balances 100,723 307,670 408,393
Ending Fund Balances 103,606$ 309,983$ 413,589$
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, 2023
(dollar amounts expressed in thousands)
84
City of Iowa City, Iowa
Note to Required Supplementary Information - Budgetary Reporting
For the Year Ended June 30, 2023
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 custodial 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 $15,076,000 and expenditures by
$69,579,000. The budget amendments were primarily due to changes in the breadth and timing of capital
improvement projects, which the City budgets in full during the initial year of the projects and amends
future year budgets for carryover.
85
2023 2022 2021
City's proportion of the net pension liability 3.379080%3.529220%3.621079%
City's proportionate share of the net pension liability 18,976$ 7,926$ 28,882$
City's covered payroll 11,413 11,468 11,503
City's proportionate share of the net pension liability
as a percentage of its covered payroll 166.27%69.11%251.08%
Plan fiduciary net position as a percentage of the
total pension liability 84.62%93.62%76.47%
* 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.
See Notes to Required Supplementary Information - Pension Liability.
City of Iowa City, Iowa
Required Supplementary Information - Schedule of the City's Proportionate
Municipal Fire and Police Retirement System of Iowa
For the Last Nine Years*
(amounts expressed in thousands)
Share of the Net Pension Liability
86
2020 2019 2018 2017 2016 2015
3.684880%3.706970%3.648635%3.697128%3.704972%3.778137%
24,170$ 22,071$ 21,398$ 23,117$ 17,406$ 13,696$
11,155 10,743 10,347 10,019 9,716 9,648
216.67%205.45%206.80%230.73%179.15%141.96%
79.94%81.07%80.60%78.20%83.04%86.27%
87
2023 2022 2021 2020
Statutorily required contributions 3,009$ 2,988$ 2,903$ 2,808$
Contributions in relation to the
statutorily required contribution (3,009) (2,988) (2,903) (2,808)
Contribution deficiency (excess)-$ -$ -$ -$
City's covered payroll 12,590$ 11,413$ 11,468$ 11,503$
Contributions as a percentage of
covered payroll 23.90%26.18%25.31%24.41%
See Notes to Required Supplementary Information - Pension Liability.
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)
88
2019 2018 2017 2016 2015 2014
2,902$ 2,759$ 2,682$ 2,782$ 2,955$ 2,906$
(2,902) (2,759) (2,682) (2,782) (2,955) (2,906)
-$ -$ -$ -$ -$ -$
11,155$ 10,743$ 10,347$ 10,019$ 9,716$ 9,648$
26.02%25.68%25.92%27.77%30.41%30.12%
89
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, 2023
90
9191
2023 2022 2021
City's proportion of the net pension liability 0.4185650%-0.1604936%0.3947745%
City's proportionate share of the net pension liability 15,814$ 554$ 27,732$
City's covered payroll 33,752 32,047 31,345
City's proportionate share of the net pension liability
as a percentage of its covered payroll 46.85%1.73%88.47%
Plan fiduciary net position as a percentage of the
total pension liability 90.34%100.81%82.90%
* 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.
See Notes to Required Supplementary Information - Pension Liability.
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 Nine Years*
(amounts expressed in thousands)
92
2020 2019 2018 2017 2016 2015
0.4053890%0.4016869%0.3968158%0.3962696%0.4159256%0.4378904%
23,475$ 25,420$ 26,433$ 24,938$ 20,549$ 17,366$
30,852 30,190 29,619 28,448 28,495 28,654
76.09%84.20%89.24%87.66%72.11%60.61%
85.45%83.62%82.21%81.82%85.19%87.61%
93
2023 2022 2021 2020
Statutorily required contributions 3,493$ 3,186$ 3,025$ 2,959$
Contributions in relation to the
statutorily required contribution (3,493) (3,186) (3,025) (2,959)
Contribution deficiency (excess)-$ -$ -$ -$
City's covered payroll 37,000 33,752$ 32,047$ 31,345$
Contributions as a percentage of
covered payroll 9.44%9.44%9.44%9.44%
See Notes to Required Supplementary Information - Pension Liability.
(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
94
2019 2018 2017 2016 2015 2014
2,912$ 2,696$ 2,645$ 2,540$ 2,545$ 2,559$
(2,912) (2,696) (2,645) (2,540) (2,545) (2,559)
-$ -$ -$ -$ -$ -$
30,852$ 30,190$ 29,619$ 28,448$ 28,495$ 28,654$
9.44%8.93%8.93%8.93%8.93%8.93%
95
Changes of benefit terms:
There are no significant changes in benefit terms.
Changes of assumptions:
The 2022 valuation incorporated the following refinements after a quadrennial experience
study:
• Changed mortality assumptions to the PubG-2010 mortality tables with mortality
improvements modeled using Scale MP-2021.
• Adjusted retirement rates.
• Lowered disability rates.
• Adjusted termination rates.
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, 2023
96
2023 2022 2021 2020 2019 2018
Service Cost 617$ 823$ 734$ 633$ 553$ 502$
Interest 353 226 240 323 297 245
Difference between expected and actual experience (118) (254) 459 (483) 1,161 (377)
Changes in assumptions (25) (1,942) 305 (83) 225 982
Benefit payments (221) (427) (667) (641) (948) (174)
Net change in total OPEB liability 606 (1,574) 1,071 (251) 1,288 1,178
Total OPEB liability beginning of year 8,124 9,698 8,627 8,878 7,590 6,412
Total OPEB liability end of year 8,730$ 8,124$ 9,698$ 8,627$ 8,878$ 7,590$
City's covered-employee payroll 49,590$ 44,134$ 43,515$ 42,848$ 42,007$ 40,933$
Total OPEB liability as a percentage of
covered-employee payroll 17.60%18.41%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, 2023 4.13%
Year ended June 30, 2022 4.09%
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%
Health care trend rates have been updated to an initial trend rate of 7.0% 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 Six Years
(amounts expressed in thousands)
97
9898
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.
99
Metropolitan
Community Planning
Development Organization
Economic Block of Johnson
Development Grant County Total
Assets
Equity in pooled cash and investments 175$ -$ 474$ 649$
Receivables:
Property tax 656 - - 656
Interest 8 - 2 10
Notes - 3,389 - 3,389
Due from other governments - 55 71 126
Total assets 839$ 3,444$ 547$ 4,830$
Liabilities, Deferred Inflows of Resources and Fund Balances
Liabilities
Accounts payable 44$ 50$ 1$ 95$
Accrued liabilities - 2 9 11
Due to other funds - 3$ - 3
Total liabilities 44 55 10 109
Deferred Inflows of Resources
Unavailable revenues:
Succeeding year property taxes 612 - - 612
Total deferred inflows of resources 612 - - 612
Fund Balances
Restricted 434 3,389 537 4,360
Unassigned (251) - - (251)
Total fund balances 183 3,389 537 4,109
Total liabilities, deferred inflows
of resources and fund balances 839$ 3,444$ 547$ 4,830$
Special Revenue
City of Iowa City, Iowa
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
(amounts expressed in thousands)
100
Metropolitan
Community Planning
Development Organization
Economic Block of Johnson
Development Grant County Total
Revenues
Property taxes 4,608$ -$ -$ 4,608$
Intergovernmental 33 2,103 340 2,476
Use of money and property 62 28 13 103
Miscellaneous - 103 18 121
Total revenues 4,703 2,234 371 7,308
Expenditures
Current:
Community and economic development 3,565 1,847 770 6,182
Total expenditures 3,565 1,847 770 6,182
Excess (deficiency) of revenues over
(under) expenditures 1,138 387 (399) 1,126
Other Financing Sources (Uses)
Transfers in 81 - 402 483
Transfers out (1,847) (85) - (1,932)
Total other financing sources
and (uses)(1,766) (85) 402 (1,449)
Net change in fund balances (628) 302 3 (323)
Fund Balances, Beginning 811 3,087 534 4,432
Fund Balances, Ending 183$ 3,389$ 537$ 4,109$
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, 2023
(amounts expressed in thousands)
101
102102
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.
103
Airport Parking Total
Assets
Current assets:
Equity in pooled cash and investments 112$ 4,286$ 4,398$
Receivables:
Accounts and unbilled usage 22 49 71
Interest - 16 16
Lease 28 - 28
Due from other governments 435 6 441
Total current assets 597 4,357 4,954
Noncurrent assets:
Restricted assets:
Equity in pooled cash and investments 8 304 312
Lease receivable 533 - 533
Capital assets:
Land 11,995 3,489 15,484
Buildings 5,458 42,664 48,122
Improvements other than buildings 445 328 773
Machinery and equipment 532 448 980
Infrastructure 17,451 - 17,451
Accumulated depreciation (14,445) (25,996) (40,441)
IT subscriptions - 349 349
Construction in progress 1,421 - 1,421
Total noncurrent assets 23,398 21,586 44,984
Total assets 23,995 25,943 49,938
Deferred Outflows of Resources
Pension related deferred outflows 9 147 156
OPEB related deferred outflows 2 50 52
Total deferred outflows of resources 11 197 208
Liabilities
Current liabilities:
Accounts payable 7 104 111
Contracts payable 48 969 1,017
Accrued liabilities 2 25 27
Employee vested benefits 4 60 64
Due to other funds 211 - 211
Total current liabilities 272 1,158 1,430
Noncurrent liabilities:
Liabilities payable from restricted assets:
Deposits 8 - 8
Advances from other funds - 1,389 1,389
Employee vested benefits 4 45 49
Net pension liability 31 496 527
Other post employment benefits obligation 13 271 284
Total noncurrent liabilities 56 2,201 2,257
Total liabilities 328 3,359 3,687
Deferred Inflows of Resources
Lease related deferred inflows 562 - 562
Pension related deferred inflows 4 67 71
OPEB related deferred inflows 4 74 78
Total deferred inflows of resources 570 141 711
Net Position
Net investment in capital assets 22,809 20,313 43,122
Restricted for future improvements 100 304 404
Unrestricted 199 2,023 2,222
Total net position 23,108$ 22,640$ 45,748$
City of Iowa City, Iowa
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2023
(amounts expressed in thousands)
104
Airport Parking Total
Operating Revenues:
Charges for services 306$ 5,296$ 5,602$
Miscellaneous - 86 86
Total operating revenues 306 5,382 5,688
Operating Expenses:
Personal services 91 2,149 2,240
Commodities - 1,060 1,060
Services and charges 362 1,819 2,181
453 5,028 5,481
Depreciation & amortization 994 1,285 2,279
Total operating expenses 1,447 6,313 7,760
Operating loss (1,141) (931) (2,072)
Nonoperating Revenues (Expenses):
Loss on disposal of capital assets - (203) (203)
Operating grants 147 - 147
Lease revenue 83 - 83
Interest income 22 115 137
Total nonoperating revenues 252 (88) 164
Loss before capital contributions
and transfers (889) (1,019) (1,908)
Capital contributions 690 - 690
Transfers in 100 - 100
Transfers out - (29) (29)
Change in net position (99) (1,048) (1,147)
Net Position, Beginning 23,207 23,688 46,895
Net Position, Ending 23,108$ 22,640$ 45,748$
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, 2023
105
Airport Parking Total
Cash Flows From Operating Activities
Receipts from customers and users 316$ 5,372$ 5,688$
Payments to suppliers (370) (2,121) (2,491)
Payments to employees (100) (2,290) (2,390)
Net cash flows used for operating activities (154) 961 807
Cash Flows From Noncapital Financing Activities
Operating grants received 89 - 89
Transfers from other funds 100 - 100
Transfers to other funds - (29) (29)
Advances from other funds 211 - 211
Repayment of advances from other funds - (373) (373)
Net cash flows from (used for) noncapital financing activities 400 (402) (2)
Cash Flows From Capital and Related Financing
Activities
Capital grants received 539 - 539
Lease revenues received 83 - 83
Acquisition and construction of property and equipment (1,097) (776) (1,873)
Net cash flows used for capital and related financing activities (475) (775) (1,250)
Cash Flows From Investing Activities
Interest on investments 22 100 122
Net increase (decrease) in cash and cash equivalents (207) (116) (323)
Cash and Cash Equivalents, Beginning 327 4,706 5,033
Cash and Cash Equivalents, Ending 120$ 4,590$ 4,710$
Reconciliation of operating loss to net cash
flows from (used for) operating activities:
Operating loss (1,141)$ (931)$ (2,072)$
Adjustments to reconcile operating loss to
net cash flows used for operating activities:
Depreciation expense 994 1,285 2,279
Changes in:
Receivables:
Accounts and unbilled usage 9 (3) 6
Due from other governments 1 (3) (2)
Accounts payable (8) 758 750
Accrued liabilities (2) (51) (53)
Net pension liability 30 479 509
Deferred outflows of resources - (12) (12)
Deferred inflows of resources (39) (578) (617)
Other post employment benefits asset/obligation 1 19 20
Total adjustments 987 1,892 2,879
Net cash flows used for operating activities (154)$ 961$ 807$
Noncash Investing, Capital, and Financing Activities:
Capital grants not yet received 314$ -$ 314$
Operating grants not yet received 121$ 3$ 124$
CITY OF IOWA CITY, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended June 30, 2023
(amounts expressed in thousands)
106
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.
107
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
Assets
Current assets:
Equity in pooled cash and investments 20,504$ 884$ 20,301$ 4,370$ 46,059$
Receivables:
Accounts and unbilled usage 34 - 94 - 128
Interest 50 4 70 16 140
Lease - - - 20 20
Due from other governments 79 - - 2 81
Inventories 631 - - - 631
Total current assets 21,298 888 20,465 4,408 47,059
Noncurrent assets:
Lease Receivable - - - 20 20
Capital assets:
Land 685 - - - 685
Buildings 1,370 - - 183 1,553
Improvements other than buildings 50 - - - 50
Machinery and equipment 25,631 146 19 1,613 27,409
Infrastructure - - - 3,634 3,634
Accumulated depreciation (14,140) (60) (19) (2,065) (16,284)
IT subscriptions - - - 608 608
Accumulated amortization - - - (463) (463)
Construction in progress 49 - - 372 421
Total noncurrent assets 13,645 86 - 3,902 17,633
Total assets 34,943 974 20,465 8,310 64,692
Deferred Outflows of Resources
Pension related deferred outflows 100 3 20 114 237
OPEB related deferred outflows 38 2 2 24 66
Total deferred outflows of resources 138 5 22 138 303
Liabilities
Current liabilities:
Accounts payable 193 11 265 116 585
Accrued liabilities 16 - 3,071 19 3,106
Employee vested benefits 38 2 4 23 67
Subscription liability - - - 57 57
Total current liabilities 247 13 3,340 215 3,815
Noncurrent liabilities:
Employee vested benefits 28 1 4 19 52
Subscription liability - - - 59 59
Net pension liability 378 11 78 390 857
Other post employment benefits liability 206 13 13 129 361
Total noncurrent liabilities 612 25 95 597 1,329
Total liabilities 859 38 3,435 812 5,144
Deferred Inflows of Resources
Lease related deferred inflows - - - 40 40
Pension related deferred inflows 51 2 11 52 116
OPEB related deferred inflows 56 4 4 35 99
107 6 15 127 255
Net Position
Net investment in capital assets 13,645 86 - 3,766 17,497
Unrestricted 20,470 849 17,037 3,743 42,099
Total net position 34,115$ 935$ 17,037$ 7,509$ 59,596$
(amounts expressed in thousands)
City of Iowa City, Iowa
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
108
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
Operating Revenues:
Charges for services 7,662$ 238$ 13,995$ 2,948$ 24,843$
Total operating revenues 7,662 238 13,995 2,948 24,843
Operating Expenses:
Personal services 1,021 44 213 1,189 2,467
Commodities 2,390 4 5 721 3,120
Services and charges 745 110 11,752 565 13,172
4,156 158 11,970 2,475 18,759
Depreciation & amortization 2,159 26 - 381 2,566
Total operating expenses 6,315 184 11,970 2,856 21,325
Operating income 1,347 54 2,025 92 3,518
Nonoperating Revenues:
Gain (loss) on disposal of capital assets 35 - - 2 37
Lease Revenue - - - 19 19
Interest income 325 23 331 100 779
Interest expense - - - (5) (5)
Total nonoperating revenues 360 23 331 116 830
Income before transfers 1,707 77 2,356 208 4,348
Transfers in 1,306 - - 14 1,320
Transfers out (1,000) - - (124) (1,124)
Change in net position 2,013 77 2,356 98 4,544
Net Position, Beginning, as restated 32,102 858 14,681 7,411 55,052
Net Position, Ending 34,115$ 935$ 17,037$ 7,509$ 59,596$
(amounts expressed in thousands)
City of Iowa City, Iowa
Combining Statement of Revenues, Expenses
Internal Service Funds
For the Year Ended June 30, 2023
and Changes in Fund Net Position
109
Equipment Central Loss Information
Maintenance Services Reserve Technology Total
Cash Flows From Operating Activities
Receipts from users 7,618$ 238$ 14,080$ 2,950$ 24,886$
Payments to suppliers (3,100) (113) (12,063) (1,194) (16,470)
Payments to employees (1,144) (43) (235) (1,342) (2,764)
Net cash flows from operating activities 3,374 82 1,782 414 5,652
Cash Flows From Noncapital Financing
Activities
Transfers from other funds 1,306 - - 14 1,320
Transfers to other funds (1,000) - - (124) (1,124)
Net cash flows from (used for) noncapital
financing activities 306 - - (110) 196
Cash Flows From Capital and Related
Financing Activities
Acquisition and construction of property
and equipment (3,451) (43) - (22) (3,516)
Lease revenues received - - - 19 19
Interest paid on subsciption liability - - - (5) (5)
Principal paid on subsciption liability - - - (55) (55)
Proceeds from sale of property 211 - - 2 213
Net cash flows used for capital and related
financing activities (3,240) (43) - (61) (3,344)
Cash Flows From Investing Activities
Interest on investments 286 19 278 84 667
Net increase in cash
and cash equivalents 726 58 2,060 327 3,171
Cash and Cash Equivalents, Beginning 19,778 826 18,241 4,043 42,888
Cash and Cash Equivalents, Ending 20,504$ 884$ 20,301$ 4,370$ 46,059$
Reconciliation of operating income
to net cash flows from operating activities:
Operating income 1,347$ 54$ 2,025$ 92$ 3,518$
Adjustments to reconcile operating income
to net cash flows from operating activities:
Depreciation/amortization expense 2,159 26 - 381 2,566
Changes in:
Receivables:
Accounts and unbilled usage 11 - 85 2 98
Due from other governments (55) - - - (55)
Inventories 61 - - - 61
Accounts payable (26) 1 (49) 92 18
Accrued liabilities (33) (2) (263) (35) (333)
Employee vested benefits 3 3 1 4 11
Net pension liability 364 11 75 375 825
Deferred outflows of resources 5 1 1 (9) (2)
Deferred inflows of resources (476) (13) (94) (497) (1,080)
Other post employment benefits liability 14 1 1 9 25
Total adjustments 2,027 28 (243) 322 2,134
Net cash flows from operating activities 3,374$ 82$ 1,782$ 414$ 5,652$
Noncash Investing, Capital, and Financing
Activities:
Contributions of capital assets from
government and others -$ -$ -$ -$ -$
(amounts expressed in thousands)
City of Iowa City, Iowa
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
110
Statistical
Section
Tabs
Statistical Section
This part of the City of Iowa City’s annual comprehensive 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 113
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 118
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property tax.
Debt Capacity 128
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 134
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 136
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 annual
comprehensive financial report for the relevant year.
111
112112
2014 2015 20161 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 138,482$ 153,729$ 163,362$ 183,651$ 203,077$ 208,028$ 220,004$ 228,418$ 230,285$ 235,218$
Restricted 39,958 36,447 42,154 47,676 41,490 38,819 33,578 33,664 36,900 40,048
Unrestricted 39,758 15,520 18,402 16,264 17,646 20,124 21,819 25,528 39,505 52,971
Total governmental activities net position 218,198$ 205,696$ 223,918$ 247,591$ 262,213$ 266,971$ 275,401$ 287,610$ 306,690$ 328,237$
Business-type activities
Net investment in capital assets 264,727$ 279,272$ 279,679$ 285,912$ 294,109$ 304,111$ 314,523$ 315,915$ 325,787$ 325,391$
Restricted 19,438 22,389 22,269 21,238 22,219 18,055 17,558 14,859 13,216 7,959
Unrestricted 71,542 57,367 69,472 76,664 73,126 77,224 76,661 84,097 92,370 104,736
Total business-type activities net position 355,707$ 359,028$ 371,420$ 383,814$ 389,454$ 399,390$ 408,742$ 414,871$ 431,373$ 438,086$
Primary government
Net investment in capital assets 403,209$ 433,001$ 443,041$ 469,563$ 497,186$ 512,139$ 534,527$ 544,333$ 556,072$ 560,609$
Restricted 59,396 58,836 64,423 68,914 63,709 56,874 51,136 48,523 50,116 48,007
Unrestricted 111,300 72,887 87,874 92,928 90,772 97,348 98,480 109,625 131,875 157,707
Total primary government net position 573,905$ 564,724$ 595,338$ 631,405$ 651,667$ 666,361$ 684,143$ 702,481$ 738,063$ 766,323$
1 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)
113
2014 2015 20161 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities:
Public safety 22,721$ 21,193$ 22,029$ 24,002$ 25,191$ 26,265$ 29,252$ 30,411$ 23,609$ 26,450$
Public works 8,258 11,037 10,839 12,032 12,813 16,324 16,071 16,363 17,746 19,051
Culture and recreation 16,586 14,049 14,422 15,525 16,363 16,009 16,233 15,774 16,923 18,135
Community and economic development 10,059 7,093 6,786 8,253 12,019 16,022 9,383 8,549 11,074 13,570
General government 7,687 7,752 6,240 6,124 6,858 7,524 7,693 10,529 7,439 8,774
Debt service 1,797 1,517 1,287 1,481 1,414 1,444 1,452 1,561 1,553 1,622
Total governmental activities expenses 67,108 62,641 61,603 67,417 74,658 83,588 80,084 83,187 78,344 87,602
Business-type activities:
Wastewater 21,139 12,131 11,866 11,233 11,392 11,413 10,807 12,520 12,105 12,869
Water 8,723 8,403 8,149 8,921 9,472 9,543 9,302 10,177 9,477 9,672
Sanitation 8,402 8,114 8,735 9,123 9,408 10,858 10,145 10,045 10,113 10,282
Housing authority 7,703 7,873 8,378 8,798 9,535 10,170 10,021 10,141 11,832 12,067
Parking 4,093 4,678 4,460 4,620 5,590 5,461 5,014 4,613 5,381 6,436
Airport 1,209 1,612 1,597 1,402 1,680 1,466 2,511 1,835 1,509 1,433
Stormwater 1,314 2,091 1,989 2,432 1,844 1,832 2,198 2,105 2,190 2,393
Cable television 781 704 - - - - - - - -
Transit 7,795 7,379 7,486 7,263 8,071 8,833 9,041 8,107 8,573 9,276
Total business-type activities expenses 61,159 52,985 52,660 53,792 56,992 59,576 59,039 59,543 61,180 64,428
Total primary government expenses 128,267$ 115,626$ 114,263$ 121,209$ 131,650$ 143,164$ 139,123$ 142,730$ 139,524$ 152,030$
Program Revenues
Governmental activities:
Charges for services
Public safety 3,626$ 3,926$ 4,813$ 5,286$ 4,438$ 4,870$ 4,430$ 4,277$ 4,625$ 5,129$
Public works 61 388 628 724 62 290 243 482 149 112
Culture and recreation 808 801 823 842 836 854 508 322 627 696
Community and economic development 45 50 1,044 36 441 548 59 1,837 3,625 2,066
General government 3,030 2,975 1,252 1,524 1,520 1,717 1,551 1,582 1,728 1,871
Operating grants and contributions 3,231 8,701 9,941 10,828 10,245 13,758 13,113 12,479 14,491 15,550
Capital grants and contributions 5,580 11,556 3,999 9,952 1,459 1,972 1,915 2,845 4,316 3,113
Total governmental activities program revenues 16,381 28,397 22,500 29,192 19,001 24,009 21,819 23,824 29,561 28,537
Business-type activities:
Charges for services:
Wastewater 12,559 12,189 12,266 12,277 12,626 12,831 12,357 12,155 12,121 12,333
Water 8,443 8,527 9,134 9,275 9,473 9,640 10,048 9,934 10,127 10,473
Sanitation 8,467 9,015 9,215 9,927 10,014 10,017 10,193 11,944 11,289 11,853
Housing authority 213 237 300 321 323 295 280 296 282 307
Parking 5,294 5,502 5,438 5,453 5,648 5,982 4,354 3,758 5,054 5,296
Airport 328 349 333 345 348 361 371 376 372 389
Stormwater 1,093 1,147 1,168 1,544 1,560 1,568 1,730 1,701 1,704 1,730
Cable Television 773 750 - - - - - - - -
Transit 2,185 2,289 2,099 2,089 2,216 2,171 1,802 1,385 1,745 1,822
Capital grants and contributions: Wastewater 7,105 1,370 3,415 2,226 1,913 1,827 2,550 1,580 964 167
Capital grants and contributions: Water 539 581 254 869 483 488 965 834 481 235
Capital grants and contributions: Sanitation - - - - 22 13 - - - -
Capital grants and contributions: Airport 5,214 137 260 58 49 38 134 267 154 690
Capital grants and contributions: Stormwater 711 792 370 1,251 892 902 876 1,230 696 540
Capital grants and contributions: Parking - - - - - - - - - -
Capital grants and contributions: Transit 243 - 308 395 3,827 - - 77 3,416 -
Operating grants and contributions: Housing authority 6,721 7,628 8,318 8,532 9,065 9,443 9,875 9,691 11,481 11,529
Operating grants and contributions: Water 6 2 - - - - 2 45 42 6
Operating grants and contributions: Airport 56 232 128 69 72 14 896 332 259 147
Operating grants and contributions: Sanitation 27 25 3 - 3 104 20 18 105 -
Operating grants and contributions: Wastewater 62 21 - - - - 8 - 77 -
Operating grants and contributions: Stormwater 13 279 95 - 2 - - - - -
Operating grants and contributions: Parking - - - - - - 3 - 3 -
Operating grants and contributions: Transit 2,118 2,082 2,095 2,235 2,088 2,152 3,107 3,016 5,096 5,059
Total business-type activities program revenues 62,170 53,154 55,199 56,866 60,624 57,846 59,571 58,639 65,468 62,576
Total primary government revenues 78,551$ 81,551$ 77,699$ 86,058$ 79,625$ 81,855$ 81,390$ 82,463$ 95,029$ 91,113$
Net (Expense) / Revenues
Governmental activities (50,727)$ (34,244)$ (39,103)$ (38,225)$ (55,657)$ (59,579)$ (58,265)$ (59,363)$ (48,783)$ (59,065)$
Business-type activities 1,011 169 2,539 3,074 3,632 (1,730) 532 (904) 4,288 (1,852)
Total primary government net expense (49,716)$ (34,075)$ (36,564)$ (35,151)$ (52,025)$ (61,309)$ (57,733)$ (60,267)$ (44,495)$ (60,917)$
General Revenues and Other Changes in Net Position
Governmental activities:
General revenues:
Property taxes 50,551$ 52,205$ 53,114$ 57,649$ 59,046$ 61,739$ 62,846$ 69,482$ 70,678$ 70,824$
Road use tax2 6,745 - - - - - - - - -
Local Sales Option tax 466 - - - - - - - - -
Other taxes 2,778 2,810 2,717 2,802 2,706 2,935 2,696 2,576 3,541 3,786
Grants and contributions not restricted to specific purposes - 1,048 2,080 1,583 1,547 1,552 1,513 1,587 1,555 1,244
Earnings (loss) on investments 973 1,188 1,045 1,397 2,368 3,257 2,585 841 (544) 4,325
Miscellaneous 4,353 5,518 4,464 3,369 3,656 3,329 3,331 3,030 3,524 3,984
Gain on sale of assets 1,651 135 218 2,151 140 186 111 213 257 1,242
Transfers (6,192) (10,057) (6,395) (7,053) 1,814 (8,661) (6,387) (6,157) (11,148) (4,876)
Reassignments - - 82 - - - - - - -
Total governmental activities 61,325 52,847 57,325 61,898 71,277 64,337 66,695 71,572 67,863 80,529
(continued)
City of Iowa City, Iowa
Changes in Net Position
Last Ten Fiscal Years
(Accrual basis of accounting)
(amounts expressed in thousands)
114
2014 2015 20161 2017 2018 2019 2020 2021 2022 2023
Business-type activities:
General revenues:
Earnings (loss) on investments 494 707 715 938 1,496 2,166 1,794 426 (190) 2,605
Gain on sale of assets 725 856 2,463 69 2,438 1 74 22 23 1
Miscellaneous 265 374 362 1,260 456 838 565 428 1,233 1,083
Transfers 6,192 10,057 6,395 7,053 (1,814) 8,661 6,387 6,157 11,148 4,876
Reassignments - - (82) - - - - - - -
Special items - (574) - - - - - - - -
Total business-type activities 7,676 11,420 9,853 9,320 2,576 11,666 8,820 7,033 12,214 8,565
Total primary government 69,001$ 64,267$ 67,178$ 71,218$ 73,853$ 76,003$ 75,515$ 78,605$ 80,077$ 89,094$
Change in Net Position
Governmental activities 10,598$ 18,603$ 18,222$ 23,673$ 15,620$ 4,758$ 8,430$ 12,209$ 19,080$ 21,464$
Business-type activities 8,687 11,589 12,392 12,394 6,208 9,936 9,352 6,129 16,502 6,713
Total primary government 19,285$ 30,192$ 30,614$ 36,067$ 21,828$ 14,694$ 17,782$ 18,338$ 35,582$ 28,177$
1 The City of Iowa City reclassified the Cable Fund from an Enterprise Fund to the General Fund effective July 1, 2015.
2 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)
115
2014 2015 20161 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable 69$ 69$ 69$ 788$ 793$ 887$ 549$ 469$ 1,889$ 2,127$
Restricted 26,533 25,291 18,975 9,974 1,942 1,808 1,747 1,455 2,015 2,310
Committed - - 4,699 5,199 4,962 - - - - -
Assigned 3,400 - 1,143 1,342 1,437 3,565 5,708 9,883 14,852 19,622
Reserved - 4,483 - - - - - - - -
Unassigned 17,907 19,286 23,366 24,793 28,516 34,358 35,369 40,414 40,074 37,977
Total general fund 47,909$ 49,129$ 48,252$ 42,096$ 37,650$ 40,618$ 43,373$ 52,221$ 58,830$ 62,036$
All other Governmental Funds
Nonspendable -$ -$ -$ 344$ 165$ 224$ 278$ 218$ 243$ 269$
Restricted 31,285 27,897 38,266 63,941 64,033 50,966 48,728 51,931 57,346 61,230
Unassigned (9) - - - (38) (59) (611) (27) (417) (251)
Total all other governmental funds 31,276$ 27,897$ 38,266$ 64,285$ 64,160$ 51,131$ 48,395$ 52,122$ 57,172$ 61,248$
1 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)
116
2014 2015 20161 2017 2018 2019 2020 2021 2022 2023
Revenues:
Property taxes and assessments 53,797$ 55,014$ 55,831$ 60,452$ 61,753$ 64,672$ 65,542$ 72,058$ 74,220$ 74,611$
Licenses and permits 1,660 1,806 3,056 3,521 2,734 2,981 2,352 2,541 2,786 2,854
Intergovernmental 17,636 21,086 20,230 24,140 14,944 16,828 18,603 20,127 22,756 23,443
Charges for services 1,819 2,204 3,357 2,355 2,295 2,690 1,715 3,446 5,314 3,890
Fines and forfeits - - 760 750 695 776 609 375 434 372
Use of money and property 909 1,080 946 1,235 1,937 2,564 1,872 773 506 3,547
Miscellaneous 6,040 7,045 2,913 2,101 2,875 2,261 2,440 2,112 2,591 3,477
Total governmental activities revenues 81,861$ 88,235$ 87,093$ 94,554$ 87,233$ 92,772$ 93,133$ 101,432$ 108,607$ 112,194$
Expenditures
Current
Public safety 21,370$ 21,996$ 21,701$ 22,513$ 23,360$ 24,295$ 25,637$ 26,167$ 26,821$ 27,649$
Public works 8,432 12,071 9,466 9,186 10,052 10,894 10,586 11,447 10,883 11,440
Culture and recreation 13,087 11,821 12,257 13,341 14,208 13,709 13,653 12,979 15,090 16,009
Community and economic development 8,196 5,711 5,346 7,695 11,074 15,723 8,627 8,305 11,076 13,629
General government 7,184 7,608 6,007 5,882 6,017 6,579 6,789 9,788 7,907 8,748
Debt service
Principal 13,560 12,564 13,230 13,305 11,895 12,080 11,385 12,745 11,220 11,085
Interest 1,903 1,669 1,475 1,597 1,570 1,589 1,648 1,905 1,956 2,072
Capital projects 14,528 14,762 14,848 18,405 28,225 22,632 21,211 12,173 12,073 20,824
Total expenditures 88,260$ 88,202$ 84,330$ 91,924$ 106,401$ 107,501$ 99,536$ 95,509$ 97,026$ 111,456$
Excess (deficiency) of revenues over
(under) expenditures (6,399)$ 33$ 2,763$ 2,630$ (19,168)$ (14,729)$ (6,403)$ 5,923$ 11,581$ 738$
Other financing sources (uses):
Issuance of long-term debt 19,730$ 7,785$ 9,405$ 22,570$ 11,995$ 12,535$ 12,145$ 11,325$ 10,255$ 9,105$
Sale of capital assets 1,684 165 252 2,292 140 758 111 233 256 1,538
Premium (discount) on issuance of bonds 385 199 441 120 236 81 927 1,464 553 894
Transfers in 13,040 13,089 25,133 34,675 34,666 25,663 21,236 21,223 24,229 24,631
Transfers out (16,134) (23,430) (28,502) (47,033) (32,440) (34,369) (27,997) (27,593) (35,215) (29,624)
Total other financing sources (uses)18,705$ (2,192)$ 6,729$ 12,624$ 14,597$ 4,668$ 6,422$ 6,652$ 78$ 6,544$
Net change in fund balances 12,306$ (2,159)$ 9,492$ 15,254$ (4,571)$ (10,061)$ 19$ 12,575$ 11,659$ 7,282$
Debt service as a percentage of
noncapital expenditures 20.7%19.8%21.2%19.9%17.1%15.6%15.9%17.1%14.6%13.8%
Debt services as a percentage of
expenditures and transfers 14.8%12.7%13.0%10.7%9.7%9.6%10.2%11.9%10.0%9.3%
1 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)
117
Fiscal Local Option Utility
Year Property Tax Road Use Tax Hotel/Motel Tax Sales Tax1 Franchise Fee Total
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
2022 71,362 9,900 1,708 - 1,149 84,119
2023 71,608 10,346 1,885 - 1,117 84,956
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)
118
Assessed Valuation
Tax Collection Year:
FY2023 FY2022 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014
Residential 5,302,710,934$ 5,067,120,030$ 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$
Agricultural (taxed at Ag rate)1,574,220 1,727,980 1,748,000 2,539,080 2,625,810 3,425,692 3,720,671 3,553,520 3,680,920 2,655,640
Multi-Residential 544,717,108 539,398,739 539,636,381 489,176,499 471,420,082 411,460,472 410,426,868 - - -
Commercial 1,048,701,445 1,056,414,063 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
Industrial 77,491,638 79,998,654 80,663,794 76,905,588 71,553,904 72,635,554 73,206,895 74,399,739 80,153,614 72,834,630
Railroads 4,380,355 4,072,190 4,488,469 3,601,348 3,549,414 3,984,932 4,096,577 4,015,580 3,827,506 3,205,451
Utilities w'out Gas & Electric 2,779,716 4,339,508 6,152,547 7,386,408 7,099,293 6,734,894 7,375,066 8,239,789 9,599,528 10,816,940
Gross valuation 6,982,355,416 6,753,071,164 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
Less: Military exemption 2,239,068 2,392,784 2,435,380 2,489,088 2,579,836 2,635,396 2,727,994 2,828,002 2,939,122 3,059,502
Net valuation 6,980,116,348 6,750,678,380 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
Incremental value 133,492,758 142,496,667 89,469,635 115,175,495 85,379,709 80,577,275 72,666,677 42,307,287 21,131,574 14,113,908
Gas and Electric Utilities 134,787,151 126,171,274 118,583,613 109,124,421 97,050,716 94,582,279 92,987,351 87,728,294 78,642,915 87,100,183
Total Assessed valuation 7,248,396,257$ 7,019,346,321$ 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$
Percent change 3.263%2.354%11.809%3.824%7.520%2.696%8.074%2.567%3.392%1.144%
Taxable Valuation
Tax Collection Year:
FY2023 FY2022 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014
Assessment Limitation:
Residential rollback 54.1302%56.4094%55.0743%56.9180%55.6209%56.9391%55.6259%55.7335%54.4002%52.8166%
Agricultural rollback 89.0412%84.0305%81.4832%56.1324%54.4480%47.4996%46.1068%44.7021%43.3997%59.9334%
Multi-Residential rollback 63.75%67.50%71.25%75.00%78.75%82.50%86.25%NA NA NA
Commercial and Railroad rollback 90.0%90.0%90.0%90.0%90.0%90.0%90.0%90.0%95.0%NA
Industrial rollback 90.0%90.0%90.0%90.0%90.0%90.0%90.0%90.0%95.0%NA
Uilities rollback 100.0%98.5%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.00%
Residential 2,841,405,824$ 2,837,384,852$ 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$
Agricultural (taxed at Ag rate)1,401,705 1,452,029 1,424,328 1,425,151 1,429,547 1,618,090 1,706,955 1,588,496 1,597,501 1,591,636
Multi-Residential 343,613,885 360,829,356 382,070,966 363,613,829 368,969,925 337,946,106 353,335,857 - - -
Commercial 937,999,668 944,990,382 950,525,463 832,628,954 819,505,276 734,200,396 720,036,878 1,016,458,199 1,086,556,293 1,113,600,025
Industrial 69,541,657 71,998,513 72,596,824 68,970,889 64,152,540 64,688,055 65,301,535 66,959,765 76,128,877 72,834,630
Railroads 3,942,320 3,664,971 4,039,622 3,241,213 3,194,473 3,586,439 3,686,919 3,614,022 3,636,130 3,205,451
Utilities w'out Gas & Electric 2,779,716 4,276,538 6,152,547 7,386,408 7,099,293 6,734,894 7,375,066 8,239,789 9,599,528 10,816,940
Gross valuation 4,200,684,775 4,224,596,641 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
Less: Military exemption 2,239,068 2,392,784 2,435,380 2,489,088 2,579,836 2,635,396 2,727,994 2,828,002 2,939,122 3,059,502
Net valuation 4,198,445,707 4,222,203,857 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
Incremental value 133,492,758 131,180,258 84,077,937 115,175,495 85,379,369 80,559,947 72,650,838 33,331,128 21,131,574 14,113,908
Gas and Electric Utilities 44,017,962 40,595,608 40,156,239 42,719,065 41,797,475 41,702,196 44,986,783 46,785,426 47,004,994 46,813,214
Total Taxable Valuation 4,375,956,427$ 4,393,979,723$ 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$
Percent change -0.410%3.189%8.541%4.743%5.719%3.550%7.501%1.462%3.320%2.564%
Total Direct Tax Rate
City of Iowa City 15.633$ 15.673$ 15.773$ 15.833$ 16.183$ 16.333$ 16.583$ 16.651$ 16.705$ 16.805$
Sources:
Iowa Department of Management, IC Budget
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
119
(per $1,000 assessed valuation)
Fiscal Year:2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Levy Year:2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City:
General Fund 8.10000$ 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 0.24000 0.24000 0.20000
Debt Service Fund 4.02965 4.12963 3.92833 3.82846 3.57846 3.22846 2.97846 2.57846 2.47846 2.47846
Employee Benefits 3.16331 2.96331 3.11277 3.14415 3.14415 3.34415 3.24415 3.34415 3.34415 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 1.51226 1.51226 1.50986 1.51044 1.51044 1.51044 1.51044 1.51044 1.51044 1.51044
Total City 16.80522$ 16.70520$ 16.65096$ 16.58305$ 16.33305$ 16.18305$ 15.83305$ 15.77305$ 15.67305$ 15.63305$
Johnson County 6.73712$ 6.74168$ 6.90337$ 6.77140$ 6.85143$ 6.53594$ 6.49278$ 6.34581$ 6.16774$ 6.04075$
Iowa City Community School District 13.68792 13.69999 13.86773 13.98935 13.95855 14.85629 14.79097 14.83935 14.85066 14.93382
Kirkwood 1.06473 1.05754 1.06125 1.08048 1.13174 1.20354 1.21331 1.25730 1.31195 1.34462
Other 0.37333 0.32315 0.32784 0.32450 0.33036 0.30557 0.27066 0.33110 0.32744 0.30673
Total Tax Rate 38.66832$ 38.52756$ 38.81115$ 38.74878$ 38.60513$ 39.08439$ 38.60077$ 38.54661$ 38.33084$ 38.25897$
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
120
Collection Total Tax Current Tax Delinquent Tax Total Tax
Year Levied Collections Collections1 Collections
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
2022 66,912 67,075 100.2 29 67,104 100.3
2023 66,474 66,259 99.7 3 66,262 99.7
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
121
% 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 30,192$ 1 0.69 %
BBCS Hawkeye Housing LLC Real Estate Mangment - - N/A 27,489 2 0.63 %
Mid-American Energy Company Public Gas and Electric Utility 44,174 2 1.46% 27,058 3 0.62 %
ACT Inc (Am College Testing Prgrm) Educational Testing Service 46,590 1 1.53% 26,115 4 0.60 %
Tailwind Iowa City LLC Real Estate Mangment - - N/A 23,782 5 0.54 %
1201 Gilbert LLC Real Estate Mangment - - N/A 23,451 6 0.54 %
Hollingsworth Capital Partners Iowa LLC Real Estate Developer - - N/A 22,242 7 0.51 %
Dealer Properties IC LLC (Billion Auto) Car Dealerships 19,343 4 0.64% 20,147 8 0.46 %
Proctor & Gamble LLC Manufacturing Company 15,528 6 0.51% 16,897 9 0.39 %
Webber - Iowa LLC Domestic Limited Liability Company - - N/A 15,850 10 0.36 %
Ann Gerdin Trust (formerly Russell Gerdin)Warehousing 22,321 3 0.74% - - N/A
Alpha Inc. Industrial 16,227 5 0.53% - - N/A
National Computer Systems (Pearson) Information Services 13,800 7 0.45% - - N/A
United Natural Foods Wholesale Distribution Company 12,856 8 0.42% - - N/A
Southgate Development Company Real Estate Developer 12,749 9 0.42% - - N/A
Wal-Mart Real Estate Retail 12,542 10 0.41% - - N/A
Total 216,130$ 7.12% % 233,223$ 5.34 %
Sources:
1City of Iowa City Assessor's Office, Johnson County Auditors Office
City of Iowa City, Iowa
Principal Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
20232014
122
123123
Customer Name Charges Rank Percentage Charges Rank Percentage
Proctor & Gamble 597,724$ 1 7.68 %631,864$ 1 5.66 %
Veterans Administration Medical Center 102,726 2 1.32 178,438 2 1.60
Tailwind Iowa City LLC formerly Dolphin Lake/Lakeside Manor 77,900 3 1.00 90,586 3 0.81
Mercy Hospital 61,346 5 0.79 72,394 4 0.65
Campus Apartments 56,351 6 0.72 70,215 5 0.63
Dominium JIT Srv formerly Mark IV Apts 61,811 4 0.79 69,225 6 0.62
Graduate Hotel (formerly RBD Iowa City LLC &Sheraton Hotel) 34,109 8 0.44 54,041 7 0.48
Seville Apts 30,381 10 0.39 50,790 8 0.45
Rise at Riverfront Crossing - -N/A 45,440 9 0.41
Oaknoll Retirement Residence 30,561 9 0.39 44,672 10 0.40
University of Iowa, Mayflower Apt.40,466 7 0.52 - -N/A
- -N/A
1,093,375$ 14.06 %1,307,665$ 11.71 %
Total Water System Charges 7,778,364$ 11,172,513$
Sources:
City of Iowa City Revenue Division
City of Iowa City, Iowa
Larger Water System Customers
Current Year and Nine Years Ago
20232014
124
Fiscal Water Sales Water System
Year Cubic Feet Sold Charges
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
2022 237,722,261 10,209,841
2023 249,812,176 11,172,513
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
125
Customer Name Charges Rank Percentage Charges Rank Percentage
University of Iowa 2,033,586$ 1 16.42 %1,912,495$ 1 15.17 %
Proctor & Gamble 1,139,625 2 9.20 763,124 2 6.05
Veterans Administration Medical Center 135,545 3 1.09 204,173 3 1.62
Iowa City Landfill 127,451 5 1.03 146,184 4 1.16
Mercy Hospital 103,838 6 0.84 100,294 5 0.80
Tailwind Iowa City LLC formerly Dolphin Lake 133,843 4 1.08 97,194 6 0.77
Graduate Hotel (formerly RBD Iowa City LLC &Sheraton H 59,549 10 0.48 75,750 7 0.60
Campus Apartments 74,248 8 0.60 74,282 8 0.59
Seville Apts - -N/A 63,005 9 0.50
Rise at Riverfront Crossing - -N/A 59,860 10 0.47
Dominium JIT Srv formerly Mark IV Apts 89,261 7 0.72 - -N/A
University of Iowa/Mayflower Apartments 71,122 9 0.57
3,968,068$ 32.05 %3,496,361$ 27.73 %
Total Sewer System Charges 12,883,641$ 12,605,172$
Sources:
City of Iowa City Revenue Department
City of Iowa City, Iowa
Larger Sewer System Charges
Current Year and Nine Years Ago
2014 2023
126
Fiscal Sewer Sales Sewer System
Year Cubic Feet Sold Charges
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
2022 265,503,359 12,407,521
2023 304,100,257 12,605,172
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
127
General Capital General Total Percentage
Fiscal Obligation Revenue Loan Obligation Revenue Primary of Personal Per
Year Bonds1 Bonds1 Note Bonds1 Bonds1 Lease Government Income2 Capita2
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 1.02 1,319
2020 55,007,945 14,764,512 210,784 - 16,786,358 - 86,769,599 0.86 1,160
2021 56,685,493 12,781,636 210,784 - 12,242,006 - 81,919,919 0.77 1,098
2022 56,823,948 11,818,760 210,784 - 7,645,204 - 76,498,696 0.69 1,030
2023 56,219,091 10,880,000 210,784 - 3,625,000 - 70,934,875 0.61 951
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 134.
Governmental Activities Business-Type Activities
City of Iowa City, Iowa
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
128
Gross General Less: Debt Net General Net Bonded Debt Net Bonded
Fiscal Obligation Service Obligation per $1,000 of Debt
Year Bonded Debt 1 Fund Balance Bonded Debt Assessed Value Per Capita2
2014 65,019 6,718 58,301 12.46 : 1000 814
2015 60,011 3,921 56,090 10.97 : 1000 764
2016 56,293 6,463 49,830 10.04 : 1000 671
2017 52,571 7,221 45,350 8.38 : 1000 599
2018 52,884 8,423 44,461 8.09 : 1000 587
2019 53,403 9,514 43,889 7.43 : 1000 584
2020 55,008 9,590 45,418 7.40 : 1000 607
2021 56,685 7,388 49,297 7.19 : 1000 661
2022 56,824 7,190 49,634 7.07 : 1000 669
2023 56,219 7,246 48,973 6.76 : 1000 657
Notes:
1 General Obligation bonds, net of related premiums and discounts.
2 Population data can be found on page 134.
City of Iowa City Iowa
Ratios of General Obligation Bonded Debt1
to Assessed Value and Net Bonded Debt per Capita
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita)
129
City of Iowa City, Iowa
Computation of Direct and Overlapping Debt
June 30, 2023
(amounts expressed in thousands, except per capita)
Total General Percent Amount
Long-Term Applicable Applicable
Name of Direct Debt to the City of to the City of
Governmental Unit Outstanding Iowa City Iowa City
City of Iowa City2 67,310$ 100.00 %67,310$
Iowa City Community
School District1 156,815 58.10 91,110
Johnson County1 25,563 42.40 10,839
Clear Creek- Amana
Community School District1 75,150 0.03 23
Kirkwood Comm. College1 124,495 14.38 17,902
Total Overlapping Debt 382,023 119,874
Total Direct & Overlapping Debt 449,333$ 187,184$
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.
130
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Assessed
Valuation 4,668,319$ 4,826,648$ 4,950,559$ 5,350,228$ 5,494,459$ 5,907,661$ 6,133,570$ 6,857,898$ 7,019,346$ 7,248,396$
Debt Limit 233,416 241,332 247,528 267,511 274,723 295,383 306,679 342,895 350,967 362,420
G.O. Bonds 64,420 59,340 55,350 51,645 51,880 52,470 53,370 53,935 53,935 52,915
TIF Rev. Bonds 2,655 2,655 2,525 15,200 15,065 14,930 14,790 12,805 11,840 10,880
Letters of credit 1,943 2,005 582 663 475 603 - - - -
Notes payable 211 211 211 211 211 211 211 211 211 211
Subscription Liability - - - - - - - - 443 317
TIF rebates 170 18,206 13,506 17,356 25,012 27,954 25,877 36,944 33,765 31,784
Total net debt
applicable to limit 69,399 82,417 72,174 85,075 92,643 96,168 94,248 103,895 100,194 96,107
Legal debt margin 164,017$ 158,915$ 175,354$ 182,436$ 182,080$ 199,215$ 212,431$ 239,000$ 250,773$ 266,313$
Total net debt
applicable to
the limit as a
percentage of
debt limit 29.73% 34.15% 29.16% 31.80% 33.72% 32.56% 30.73% 30.30% 28.55% 26.52%
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.
City of Iowa City, Iowa
Legal Debt Margin Information1
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
131
Fiscal
Year Net Revenue Annual Debt Service2
Ended Available for Ratio of
June 30 Revenue Expenses1 Debt Service Principal Interest Total Coverage
Parking Revenue3
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
2021 - - - - - - -
2022 - - - - - - -
2023 - - - - - - -
Wastewater Treatment Revenue4
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
2022 12,473 7,525 4,948 2,660 153 2,813 1.76
2023 13,069 8,742 4,327 2,085 52 2,137 2.02
Water Revenue5
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
2022 10,748 7,006 3,742 1,690 146 1,836 2.04
2023 11,811 7,535 4,276 1,755 97 1,852 2.31
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)
132
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
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
2022 620,560 29.99 18,611 - 1,349 1,349 13.80
2023 643,237 30.08 19,349 - 1,315 1,315 14.71
(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.
133
Per Capita
Calendar Personal Personal Average School Retail
Year Population6 Income1 Income1 Increase Enrollment2 Sales4
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
2019 75,130 9,681,989 55,518 1.30 15,619 2.4 865,628,890
2020 74,828 10,063,781 57,345 3.29 15,363 8.4 832,475,900
2021 74,596 10,690,422 60,316 5.18 15,636 4.0 858,860,019
2022 75,231 11,526,759 64,399 6.77 15,828 2.5 893,575,646
20235,7 75,666 12,070,524 67,437 4.72 15,438 2.6 935,729,289
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 2023 and Per Capita Personal Income for 2023 is not available. Amounts projected based on average increase
over previous 5 years.
6 US Census Bureau Population number is not available for 2023. Amounts projected based on an average over previous 9 years.
7 Quarter reports were not yet available so amount projected based on average increase over previous 5 years.
Demographic and Economic Statistics
City of Iowa City, Iowa
Last Ten Calendar Years
Unemployment
Rate3
134
Employers Employees Rank Percentage Employees Rank Percentage
University of Iowa 30,804 1 31.1 %24,500 1 25.3 %
Iowa City Community School District 1,700 2 1.7 2,000 2 2.1
Veterans Administration Medical Center 1,562 3 1.6 2,000 3 2.1
Procter and Gamble - -N/A 1,300 4 1.3
Mercy Hospital 1,187 5 1.2 1,300 5 1.3
ACT Inc. (formerly American College Testing Program)1,181 6 1.2 985 6 1.0
City of Iowa City 1,087 8 1.1 812 7 0.8
NCS Pearson 1,200 4 1.2 800 8 0.8
Goodwill of the Heartland - -N/A 638 9 0.7
Amazon - -N/A 450 10 0.5
System Unlimited 890 9 0.9 - -N/A
Hy-Vee 1,166 7 1.2
Internaltion Automotive Components formerly Lear Corp 785 10 0.8 - -N/A
41,562 42.0 %34,785 35.9 %
Total Employees 98,900 96,700
Sources:
Iowa City Area Development Group
Various Employers and documents
City of Iowa City, Iowa
Principal Employers
Current Year and Nine Years Ago
2014 2023
135
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police 105 105 105 105 105 107 107 109.26 110.76 110.76
Fire 65 64 64 64 64 64 64 64 64 64
Inspection Services 13.55 13.55 12.85 13.5 13.5 15.6 15.6 17.6 17.6 16.6
Public Works
Public Works Admin 2 2 2 2 2 2 2 2 2 2
Engineering2 12.1 12.1 12 16 16 16 16 18 18 18
Flood Recovery 0.38 - - - - - - - - -
Culture and Recreation
Parks and Rec Admin 2 2 2 2 2 2 2 2 2 2
Recreation 15.42 15.42 14.42 15.42 14.75 14 14.5 14.5 14.5 14.5
Parks 13 13 13 16 16 16 16 16 16 16
Forestry 3 3 3 3 3 5 5 7 7 7
Cemetery 3 3 3 3 3 3 3 3 3 3
CBD Maintenance 3 3 3 - - - - - - -
Library 45.13 45.13 44.77 46.17 46.17 46.17 46.05 45.92 45.92 45.92
Senior Center 6.5 6.5 6.5 7 7 7 7 7.76 7.76 7.76
Community and Economic Development 8.95 8.95 10.8 12.63 13.13 13.13 13.13 12.13 12.13 13.5
Economic Development 1 1 2 1 1 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 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5
City Manager 6 6 10.5 10.5 9 9 9 13.89 14.89 15.26
Personnel 3 3 3 3 3 3 3 3 3 3
Human Rights 2 2 2 2 2 2 2 2 2 2
Finance 23.97 22.47 23.07 23.13 22.13 22.28 22.28 22.28 22.28 22.28
Government Buildings 4.83 4.83 5.33 4.33 5 4 5 4 4 4
Special Revenue
Employee Benefits 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55
Community Development 2.98 2.98 2.83 - - - - - - -
Traffic Engineering 4.15 4.15 3.9 4.5 3 3 3 3 3 4
Streets 25.5 25.5 25.25 25.5 29 29 29 29 29 29
MPOJC (formerly JCCOG)5.6 5.6 4.7 4.7 4.7 5.2 5.2 5.2 5.2 5.2
Other Shared Revenues 1.62 - - - - - - - - -
Capital Projects Administration2 6 5 4 - - - - - - -
Internal Service Funds
Information Technology 9.86 9.86 9.86 9.8 10.8 9.8 9.8 9.8 9.8 10.5
Equipment 10.75 10.75 10.75 10.75 10.75 10.75 10.75 11.75 12 11
Central Services 0.5 0.5 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 26.25 26.25 23.13 21.63 21.63 21.38 19.63 21.38 21.38 21.88
Mass Transit 51.25 51.25 51.13 53.63 54.63 53.38 53.38 54.13 54.13 54.63
Wastewater Treatment 24.4 24.65 24.65 25.4 26 26 26 26 26 26
Water 31.75 32 32 31.75 31.75 31.75 31.75 31.25 31.25 31.25
Sanitation 35.85 35.85 33.35 31.5 31.5 32.76 34.76 35.26 35.51 36.51
Airport 1 1 1 1 1 1 1 1 1 1
Cable Television1 6.63 5.63 - - - - - - - -
Stormwater 2.1 2.6 2.6 2.1 1.5 1.5 2.5 2 2 2
Housing Authority 12.19 10.19 10.19 9.6 9.6 9.5 9.5 10.62 10.62 11
Total 615.16 607.66 598.93 599.89 601.89 605.55 608.18 624.08 627.08 630.90
Source: City's Financial Plan 1 Beginning in FY16, Cable was moved from an Enterprise Fund to the General Fund
2 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
136
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police1
Physical arrests 6,192 5,595 5,465 4,482 4,488 5,212 2,891 2,525 2,998 2,235
Traffic Violations 3,718 3,356 2,989 2,246 3,103 3,422 1,052 1,627 2,708 2,053
Fire1
Number of calls answered 5,828 6,016 6,974 6,749 7,122 7,532 6,979 8,106 9,039 8,150
Inspections conducted 2,032 1,903 2,459 874 1,031 1,300 181 1,194 1,194 1,250
Parking
Parking Violations 60,680 65,196 57,549 62,930 50,346 61,330 48,042 45,727 69,502 72,491
Wastewater Treatment
Daily average treatment
in million gallons 10.02 9.76 10.48 8.32 7.77 10.97 8.58 7.93 7.38 7.80
Maximum daily capacity
of plant in million gallons 41.1 43.3 43.3 43.3 43.3 43.3 43.3 43.3 43.3 43.3
Number of sewer system
customers 24,389 24,533 25,085 25,485 26,069 26,270 26,576 26,892 27,021 27,105
Water
Daily average consumption
in million gallons 5.64 5.33 5.32 5.50 5.84 5.69 5.33 5.57 5.52 5.60
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 24,790 23,089 23,638 24,025 24,595 24,818 25,133 25,452 25,588 25,555
Commercial 1,491 1,409 1,415 1,425 1,436 1,431 1,448 1,448 1,442 1,449
Industrial 15 14 14 14 15 15 15 15 15 15
Other 202 135 131 134 136 139 138 137 137 133
Total Customers 26,498 24,647 25,198 25,598 26,182 26,403 26,734 27,052 27,182 27,152
Sanitation
Number of Customers 15,331 14,811 15,620 15,917 15,960 16,112 16,180 16,330 16,481 16,606
Tonnage 9,160 9,210 9,476 9,623 9,694 8,989 9,682 10,339 10,247 9,747
Landfill
Tonnage 115,624 123,692 126,875 137,025 140,658 127,587 128,210 151,823 135,557 132,672
Sources: Various city divisions.
Notes:
1 Numbers are based on a calendar year and 2023 year-to-date figures are compiled through 11/15/23 for FIRE and 10/30/23 for Police.
City of Iowa City, Iowa
Operating Indicators by Function
Last Ten Fiscal Years
137
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 20 20 20 24 23 23 23 23 23 23
Fire
Stations 4 4 4 4 4 4 4 4 4 4
Fire apparatus 11 11 10 10 10 10 10 10 10 10
Public Works
Streets
Miles 279 281 283 286 288 292 293 295 298 299
Street lights 3,412 3,412 3,412 3,412 3,307 3,166 3,202 3,246 3,227 3,287
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 43 46 46 49 50 51 56 56 58 58
Acreage 1,897 1,897 1,902 1,932 1,942 1,947 1,950 1,980 1,987 1,987
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 27 27 27 27 27 27 27 27 27 27
Tennis courts 12 12 12 9 9 9 9 9 9 9
Soccer fields 20 20 20 20 20 20 20 20 20 21
Pickle Ball Courts - - - 8 8 8 8 8 8 8
Futsal Courts - - - 2 2 2 2 2 2 2
Full Basketball Courts - - - 3 3 3 6 6 6 6
Gaga Pits - - - - 2 2 2 2 2 2
Boccce Court 1 1 1
Parking
Facilities 5 5 5 6 6 6 6 6 6 6
Spaces 3,086 3,086 3,086 3,686 3,686 3,686 3,686 3,686 3,686 3,686
Wastewater Treatment
Miles of sanitary sewer 298 300 301 304 306 307 308 310 312 313
Miles of storm sewer 131 133 136 139 140 142 144 146 147 148
Number of treatment plants 1 1 1 1 1 1 1 1 1 1
Number of service connectors 24,175 24,533 25,085 25,485 26,069 26,270 26,576 26,892 27,021 26,995
Water
Miles of water mains 271 273 275 277 279 281 283 286 288 289
Number of city owned fire hydrants 3,385 3,415 3,447 3,503 3,529 3,564 3,611 3,647 3,687 3,717
Sanitation
Landfills 1 1 1 1 1 1 1 1 1 1
Acreage 411 418 418 418 418 418 418 418 418 418
Sources: Various city divisions.
City of Iowa City, Iowa
Capital Assets by Function
Last Ten Fiscal Years
138
Compliance
Section
Tab
153