FY2023 Adopted Budget

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, 2022 will be $52,268. 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. In fiscal year 2022, the City purchased eight townhouses and duplexes in the South District with the intent of eventually converting each rental until to an owner-occupied unit. While the units remain occupied with tenants, rents and expenses to maintain the units will be housed within this fund until such time that the units are vacated. At this time, expenses for renovations of the units and sale of the units will be transferred to the General Fund. The Iowa City Property Management Fund accounts for the operations of the City-owned rental units in these three 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 2023 ending fund balance is projected at $291,965. The fund’s current fund balance level is necessary to be able cover the $210,784 loan balloon payment due in fiscal year 2025.

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