FY2022

IOWA CITY PROPERTY MANAGEMENT FUND In 2003, City Council voted to support the development of affordable housing by committing to the construction of 17 housing units in conjunction with The Housing Fellowship. The City owns and operates ten (10) of the rental units. The remaining seven (7) units are owned and operated by The Housing Fellowship. This fund accounts for the operation of the ten units owned by the City and are known as the Peninsula Apartments. Funding for the Peninsula Apartments included an Economic Development Grant, CDBG funds, and HOME funds. In addition, general obligation bonds were issued to finance a $410,000 loan to The Housing Fellowship and a $256,000 internal loan to the Peninsula Apartments. The internal loan payments are accounted for in this fund. Both of these loans are payable to the City’s Debt Service Fund. The outstanding balance owed to the Debt Service Fund from the Peninsula Apartments Fund at June 30, 2021 will be $68,023. The final payment on this loan is in June 2025. Also, as part of the financing structure, The Housing Fellowship issued an interest-only loan to the City for $210,784 for the Peninsula Apartments. The repayment of the full principal balance will be due in a balloon payment in fiscal year 2025. These interest- only payments are accounted for in this fund. In fiscal year 2017, the City entered into a public-private partnership with a developer to construct a 126-unit apartment building and a 117-space parking ramp in the City Hall parking lot. The apartment building is known as the Augusta Place. From that development, the City purchased 60 of the parking spaces and six one-bedroom rental units. The sale of the six rental units was complete in fiscal year 2020. The Iowa City Property Management Fund accounts for the operations of the City-owned rental units in these two developments. Each development pays 9% of its gross rents towards administration which is accounted for in the Iowa City Property Management activity. Fund Balance: The fiscal year 2022 ending fund balance is projected at $278,781. The fund’s fund balance continues to grow in order to cover the $210,784 lump sum payment due in fiscal year 2025. Revenues: Rental income is projected at $127,933 in fiscal year 2022, an increase of 87% from fiscal year 2021. This is primarily due to the addition of the Augusta Place units and to moving the property management activity into here from the General Fund. Expenditures: Expenditures are budgeted to grow by $14,639 or 25.4% in fiscal year 2022 primarily due to the same reasons as the revenue growth.

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