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HomeMy WebLinkAbout2011 Annual Comprehensive Financial ReportCITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE TEN MONTHS ENDED December 31, 2011 Prepared by Administrative Services Department CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Principal Officials 2 Organization Chart 3 Letter of Transmittal 4 Certificate of Achievement for Excellence in Financial Reporting 13 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS 15 MANAGEMENT'S DISCUSSION AND ANALYSIS 18 BASIC FINANCIAL STATEMENTS Statement of Net Assets 27 Statement of Activities 29 Governmental Funds Balance Sheet 31 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Proprietary Funds Statement of Net Assets 34 Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 36 Proprietary Funds Statement of Cash Flows 37 Fiduciary Funds - Statement of Net Assets 39 Fiduciary Funds - Pension Trust Funds - Statement of Changes in Plan Net Assets 40 Notes to the Financial Statements Index for Notes to the Financial Statements 41 Notes to the Financial Statements 44 REQUIRED SUPPLEMENTARY INFORMATION Firefighters' Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund - Schedules of Funding Progress and Post Employment Benefits 99 Firefighters' and Police Pension Funds - Schedules of Employer Contribution 100 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)101 Notes to the Required Supplementary Information Digest of Changes - IMRF 102 Conversion from GAAP basis to Budgetary basis 102 INTRODUCTORY SECTION FINANCIAL SECTION i CITY OF EVANSTON, ILLINOIS Table of Contents PAGE GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 106 Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 111 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 116 Schedule of Expenditures - Budget and Actual (Budgetary Basis)122 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)124 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)125 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)126 Neighborhood Improvement Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)127 Affordable Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)128 HOME Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)129 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)130 Schedule of Expenditures - Budget and Actual (Budgetary Basis)131 Community Development Loan Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)133 Neighborhood Stabilization Program 2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)134 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES ii CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)135 Homeless Prevention & Rapid Re-Housing Program Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)136 Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 137 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 138 Special Assessment Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 139 DEBT SERVICE FUNDS All Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)140 PROPRIETARY FUND TYPES WATER FUND Schedule of Net Assets 143 Schedule of Changes in Net Assets - Reserved - Restricted Accounts 144 Operation and Maintenance Account - Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual 145 Operation and Maintenance Account - Schedule of Operating Revenues Budget and Actual 146 INTERNAL SERVICE FUNDS All Funds Combining Statement of Net Assets 148 Combining Statement of Revenues, Expenses, and Changes in Net Assets 149 Combining Statement of Cash Flows 150 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) iii CITY OF EVANSTON, ILLINOIS Table of Contents PAGE 154 155 156 157 Equalized Assessed Value and Actual Value of Taxable Property 158 Principal Property Taxpayers 159 Property Tax Levies and Collections (City) - Last Ten Levy Years 160 Ratio of General Bonded Debt Outstanding 161 Ratio of Outstanding Debt by Type 162 Direct and Overlapping Governmental Activities 163 Pledged - Revenue Coverage 164 Demographic and Economic Statistics - Last Ten Years 165 Principal Employers 166 Full-Time Equivalent City Government Employees by Function 167 Property Tax Rates per $100 - Direct and Overlapping Governments 168 Water Sold by Type of Customer (in 100 cubic feet)169 Water Sold by Major Customers 170 Operating Indicators by Function/Program 171 Capital Assets Statistics by Function 172 Independent Accountants' Report on Compliance - Tax Increment Financing Districts 174 Fund Balances - Governmental Funds TAX INCREMENT FINANCING DISTRICT REQUIREMENTS Changes in Fund Balances - Governmental Funds STATISTICAL SECTION (UNAUDITED) Net Assets by Component Changes in Net Assets iv INTRODUCTORY SECTION -1- ‐2‐  CITY OF EVANSTON, ILLINOIS Principal Officials December 31, 2011 LEGISLATIVE CITY COUNCIL EXECUTIVE ADMINISTRATIVE SERVICES DEPARTMENT FINANCE DIVISION Martin Lyons, Assistant City Manager / Treasure Louis Gergits, Interim Finance Division Manager Hitesh Desai, Accounting Manager Wally Bobkiewicz, City Manager Martin Lyons, Assistant City Manager / Treasurer Elizabeth B. Tisdahl, Mayor Judy Fiske Delores A. Holmes Peter Braithwaite Mark Tendam Melissa A. Wynne Jane Grover Donald N. Wilson Ann Rainey Coleen Burrus COMMUNITY AND ECONOMIC DEVELOPMENT HEALTH CITY OF EVANSTON ORGANIZATION CHART RESIDENTS MAYOR ADVISORY BOARDS AND COMMISSIONS CITY CLERK FIRE POLICE UTILITIES PARKS, RECREATION & COMMUNITY SERVICES CITY MANAGER ADMINISTRATIVE SERVICES PUBLIC WORKS LAW LIBRARY -3- City Manager's Office 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.866.2936 TTY 847.448.8064 www.cityofevanston.org ~.~ City ofEvanston~ June 26,2012 The Honorable Mayor Elizabeth B.Tisdahl, Members of the City Council City of Evanston,Illinois INTRODUCTION The Comprehensive Annual Financial Report (CAFR)of the City of Evanston (City) for the ten month ended December 31,2011 is hereby submitted.The CAFR is prepared by the City's Administrative Services Department in accordance with the financial reporting principles and standards set forth by the Governmental Accounting Standards Board (GASB).Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,including all disclosures,rests with the City.We believe the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and capital assets of the City.All disclosures needed to enable the reader to understand the City's financial activities have been included. This report consists of management's representations concerning the finances of the City of Evanston for the period of March 1,2011 to December 31,2011. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report.To provide a reasonable basis for making these representations,management of the City has established a comprehensive internal control framework that is designed to both protect the government's assets from loss,theft,or misuse and to compile sufficient reliable information for the preparation of the City of Evanston's financial statements in conformity with generally accepted accounting principles (GAAP)within the United States of America. Because the cost of internal controls should not outweigh their benefits,the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement.As management,we assert that to the best of our knowledge and belief,this financial report is complete and reliable in all material respects. -4- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TIV 847.448 8064 www.cityofevanston.org The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 as amended and U.S.Office of Management and Budget Circular A-133,Audits of States,Local Governments,and Non-Profit Organizations.Information related to this single audit,including the schedule of federal financial assistance,findings and recommendations,and auditors'reports on the internal control structure and compliance with applicable laws and regulations,is to be presented in a separate single audit report. This report includes all the funds and capital assets of the City and its component unit,Evanston Township.The Evanston Township Board of Trustees has the same members as the City Council.The financial statements of Evanston Township are included in the reporting entity.Although the Township is a legally separate entity,it is considered a component unit:therefore,data from the Township is blended with data of the City. The City's financial statements have been audited by Baker Tilly Virchow Krause, LLP,a firm of licensed certified public accountants.The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Evanston for the ten month ended December 31,2011,are free of material misstatement.The independent audit involved examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements,assessing the accounting principles used and significant estimates by management,and evaluating the overall financial statement presentation.The independent auditors concluded, based upon the audit,that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the ten month ended December 31, 2011,are fairly presented in conformity with GAAP.The independent auditors'report is presented as the first component of the financial 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 CITY OF EVANSTON The City:The City of Evanston constitutes many communities,perspectives,and qualities:it is a suburb,an urban center,a university town,and lake-front community; it has leafy neighborhoods and lake-front mansions;it has apartment,condominium, and student housing;its residents are commuters and locally employed workers;its downtown is prospering,and neighborhood commercial centers are also strong and -5- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TTY 847.4488064 www.cityofevanston.org developing.It is a part of the Chicago land economy and has a vigorous commercial and professional economy of its own.A population of approximately 75,000 is diverse by race,religion,age,education,economics,and occupation.With 8,700 people per square mile,Evanston has double the population density of the average North and Northwest suburb,and approximately half the density of Chicago.The City has over 260 acres in 75 parks and 5 beaches. Evanston is contiguous with Chicago,and only 13 miles by rapid transit,commuter rail,expressway,or parkway from downtown Chicago.It borders the north shore communities of Skokie and Wilmette. In 1863,the Village of Evanston was incorporated as a town and,after several annexations,in 1892,the town became a city.The City's southern boundary was established with the City of Chicago and the present City limits,encompassing an area of approximately eight square miles,have been essentially the same ever since. The City has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University,so named as it was established to serve the Northwest Territory.The University first platted the village which surrounded it.The State Legislature named the Village "Evanston"in honor of Dr. John Evans,the then president of the University's Board.The continued vitality of the University and the cooperative relationship between the City and University adds to the total Evanston community. The Government:The City is a home rule municipality under the Illinois Constitution.As such,it has no tax rate or debt limits,nor is it required to conduct a referendum to authorize the increase of debt or the imposition of real estate property taxes. The City has a Council/Manager form of government with an elected Mayor.The Mayor is elected for a four-year term.The Aldermen each represent one of nine wards and are elected to terms of four years.The City Council is organized into four standing committees:Administration and Public Works,Human Services,Planning and Development,and Rules.The City Council has also established several special committees,commissions and advisory boards. The City Manager is the Chief Executive Officer of the City and is responsible for the management of all City operations under the direction of the City Council.The City Manager appoints and supervises the directors of the City's ten departments.The Assistant City Manager acts as Chief Financial Officer and is responsible for the central financial and administrative functions of the City. -6- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TIY 847.4488064 www.cityofevanston.org The City provides a broad range of municipal services,including police and fire protection,streets and parking,water and sewer service,public libraries,health services,lakefront beaches, parks and recreation activities,cultural events,and community and economic development activities. Schools are provided by separate school districts which are governed by elected school boards.A portion of the City is served by the Skokie Park District. Wastewater treatment is provided by the Metropolitan Water Reclamation District. Budget Process:The City's 2011 ten month fiscal period began on March 1,2011. During the previous 2010-11 fiscal year,the City Council passed an ordinance changing the fiscal year to a calendar year effective on period ending December 31, 2011.This resulted in a 10 months fiscal period from March 1,2011 to December 31, 2011.The subsequent fiscal year is a full 12 calendar months cycle from January 1, 2012 to December 31,2012. Because of the change in fiscal year,the City Manager submitted to the City Council a proposed operating budget in October for the fiscal year 2012 commencing the following January 1.The operating budget includes proposed expenditures and the means of financing those expenditures.Evanston has been a leader in community engagement and implemented "Engage Evanston"in 2011,a process to involve the Evanston Community in the entire budget process.The City Council also holds a public hearing and additional public meetings as a part of the budget review and planning process.The City staff will start a budget process for fiscal year 2013 in July 2012.The Council is expected to adopt the budget by November,2012. The City Manager is authorized to transfer budgeted amounts between departments within any fund (such as the General Fund).However,any revisions that alter the total expenditures of any fund must be approved by the City Council. Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America.For purposes of preparing the General Fund schedule of revenues (budget and actual),GAAP revenue and expenditures have been adjusted to the budgetary basis.The budgets of the governmental type funds are prepared on a cash basis.The Comprehensive Annual Financial Report of the City (CAFR)presents expenditures and revenues on both a GAAP basis and a budgetary basis for comparison. The City uses funds to report on its financial position and the results of its operations. Fund accounting is designated to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or -7- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TIV 847.448 8064 www.cityofevanston.org activities.Each fund is a separate self-balancing accounting entity.In the City,there are three categories of funds:governmental,proprietary and fiduciary.Governmental funds are used to account for all or most of the City's general activities,including the collection and disbursement of earmarked monies (special revenue funds),the acquisition or construction of capital assets (capital project funds),and the servicing of general long-term debt (debt service funds).The General Fund is used to account for all activities of the City not accounted for in other funds.In the fiscal year 2012, the City projects that 33.1 %($82.7 million-including transfers)of all City expenditures will occur in the General Fund.Other major funds include the Capital Improvement, Employer Pension Contribution,General Obligation Debt,Parking,Water,and Sewer Funds. The Enterprise Funds (Water,Parking,Solid Waste Fund and Sewer)are operated and budgeted on a full accrual basis.Expenditures are recognized when a commitment is made,and revenues are recognized when they are obligated to the City (for example,water user fees are recognized as revenue when bills are produced). Financial Control Procedures:The City reports financial results based on generally accepted accounting principles as promulgated by the GASB.The accounts of the City are divided into separate self-balancing funds comprised of its assets,liabilities,fund equity,revenues,and expenditures,as appropriate. The City's expenditures are monitored on a regular basis by the Administrative Services Department.Disbursements are made only if expenditures are within the authorized budget. MAJOR INITIATIVES -FISCAL YEAR 2012 The City Manager's Office will:Coordinate the CTA Purple Line Viaduct Project, increase public outreach via social media,increase collaboration with community partners,expand non-tax revenue base supporting City programs and analyze 311 data to identify and implement service efficiency. The Law Department will:Continue to provide legal support to all City departments including but not limited to the preparation of ordinances,resolutions and agreements and contracts as needed to effectively operate the City.The department will continue representation of City in EEOC and Department of Human Rights complaints, undertake new roles regarding representation and negotiations of labor contracts, analyze and evaluate new risk management strategies for City departments and update liquor regulations and noise regulations. -8- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org The Administrative Services Department will:Implement a new Financial Software System to reduce operating cost and improve efficiencies,expand the use of computer virtualization,explore opportunities for cloud computing,update non-union job descriptions,conduct internal OSHA Audit,continue to focus on reducing unemployment costs and enhance revenue collections using the services of a full time contractual Collections Coordinator. The Community and Economic Development Department will:Continue promoting economic development,neighborhood revitalization and affordable housing.The department will continue to have a special emphasis on the down payment assistance program,the single family rehab program and acquisition and rehab of foreclosed properties as part of housing activity.The department will also continue the implementation of the PAL System which includes online permit status look up and inspection scheduling The Police Department will:Continue to purchase new cameras and related equipment for use within the Evanston community.The department will purchase the field reporting program through HTE System to enable incident reporting via laptop computers.The Police department plays a central role in the continued success of 311 Center. The Fire Department will:Conduct a Shift Chief and a Fire Captain promotional exam;coordinate emergency management for all City locations;provide advanced Cardiac Life Support training to all paramedics,revise and submit City's Emergency Operations Plan for certification,offer CPR classes to citizens,enhance and augment internal wellness program and continue to spearhead the continuity of city business operations planning. The Health Department will:Address the needs of medically underserved in Evanston;host an annual health summit;expand Women Out Walking Program; develop and administer program addressing childhood obesity problem;undergo the 2011-16 recertification process to remain a certified local health department; conduct a community wide health needs assessment;establish a dental consortium to assure oral health in Evanston and develop a collaborative program to facilitate change in Evanston corner stores for availability of healthy foods. The Public Works Department will:Complete construction of a Service Center locker room;develop a five year street maintenance plan that complements the five year resurfacing plan;complete construction of a new salt dome;complete CTA Yellow Line feasibility study;complete CTA Purple Line viaduct replacement;explore shared work/operations across jurisdiction;upgrade and coordinate Sheridan Road Corridor traffic signals;design easUwest recreational bike paths;continue citywide davit arm luminaire street light replacement and expand City Works management program to -9- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TTY 847.4488064 www.cityofevanston.org cover street signs,street lights and traffic signals maintenance function to improve employee and fiscal accountability. The City of Evanston created the separate Library Fund as part of the FY 2012 Budget process.All FY 2012 revenues and expenditures associated with Library operations have been budgeted within the newly created Library Fund.The Evanston Public Library promotes the development of independent,self-confident,and literate citizens through the provision of open access to cultural,intellectual,and informational resources for all ages. The Library Department will:Continue to work with City Council members,the City Manager and Library Director to complete the transition to a new operational model; increase circulation through improved collection development;expand library services and resources throughout the community;engage citizens to identify demographics and service areas of specialization and complete a roof and masonry assessment of the Main Library. The Parks,Recreation and Community Services will:Develop e-newsletters for Fleetwood-Jourdain Center;promote online program registrations;develop a comprehensive after school program for middle school children;implement RecTrac facility scheduling software for Levy Center;expand the Golf program;recruit more volunteers to support senior services;continue to participate in state-sponsored programs;restructure the summer Special Recreation offerings;expand the number of opportunities available to youth for Youth Employment Program;continue the three year cycle of elm injections;identify additional funding sources to increase the number of trees being planted on City parkways;assist Evanston artists and arts organizations in fostering collaboration;use the building automation systems that are in place and improve energy management techniques throughout the year to reduce energy consumption. FACTORS AFFECTING FINANCIAL CONDITION The following are factors which give a broader context to the financial information contained in this CAFR report. Local Economy:The global economy showed signs of very moderate recovery in some of the sectors which trickled down to local economy in terms of some of the major revenues being little higher or flat while others were modestly lower in the 2011 fiscal period.Since the period for this report is 10 months as opposed to a traditional 12 months period,variance reporting shows significant changes in the income -10- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TTY 847.4488064 www.cityofevanston.org statement compared to prior year.The change in fiscal period from February end to December end has also contributed to the variations in some City revenues.Because not all revenues are received on even monthly increments,the change in the fiscal period end made revenue projections more difficult in 2011.Added to this change was the uncertainty of schedules for revenue distribution from both the State of Illinois and Cook County.Accordingly,City Property Tax,Utility Tax,Parking Fines and Building Permit revenues were below the budget amount.Some of the economically sensitive revenues such as Sales Tax,Use Tax,Income Tax and Real Estate Transfer Tax revenues were higher than budgeted revenues.The City's FY2012 budget for the full 12 months reflects these economic trends and the City reduced the overall General Fund expenditure budget by almost 7%compared to the prorated number for the 10 month previous fiscal period to match the pace of slow economic recovery. Risk Management:Last year,the city hired a new third-party administrator for its liability and workers'compensation claims.Based on favorable insurance experience and rates,the City reduced certain deductibles to provide more stable coverage during the current economy.Additionally,more staff and resources are being dedicated to internal risk management and formal safety training programs are being implemented for those employees most prone to injury due to the nature of their work. Pension and Other Post Retirement Benefits:The City sponsors a single­ employer defined benefit pension plan for both its police and firefighters.Each year an independent actuary engaged by the City calculates the amount of the annual contribution that the City must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis.The city has used actuarial valuation numbers from the recently engaged actuary for both pension funds in the current Audit report.The City and Police and Firefighter Pension Boards jointly recommend each year's funding level using the annual actuarial analysis. The City also provides pension benefits for its non-public safety employees.The benefits are provided through a state-wide plan managed by the Illinois Municipal Retirement Plan (IMRF).The City funding contribution rate changes each year based on investment returns and the annual City contribution rate changes annually as determined by the Plan. The City provides a deferred compensation plan (Section 457 Plan)for its employees.This is administered by Nationwide Retirement Solutions for Fire employees and by ICMA-RC (International City/County Management Association ­ Retirement Corporation)for all other employees.The employees contribute on a tax -11- 2100 Ridge Avenue Evanston,Illinois 60201-2798 T 847.328.2100 TIV 847.448 8064 www.cityofevanston.org deferred basis a fixed dollar amount or percentage of their salary.Besides this,a PEHP (Post Employment Health Plan)is also available to Fire and Police employees. Fire employees contribute a fixed dollar amount and/or sick time while Police employees contribute a fixed dollar amount,compensatory time and/or sick time. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association (GFOA)awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended February 28,2011.In order to be awarded a Certificate of Achievement,the government published an easily readable and efficiently organized comprehensive annual financial report.This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition,the City also received the GFOA's Award for Distinguished Budget Presentation for its annual March 1,2011 budget.In order to qualify for the Distinguished Budget Presentation Award,the government's budget document was judged to be proficient in several categories,including policy documentation,financial planning,and organization. We acknowledge the contributions and excellent work of Hitesh Desai,Accounting Manager,and accountants Raye Janousek,Rom Chmara and Andy Villamin in preparing the financial statements.Appreciation is also extended to all other Administrative Services Department and City Staff who contributed to the preparation of this report.We also express gratitude to the Mayor's Office and Members of City Council for their interest and support in planning and conducting the City's financial affairs. Respectfully submitted, VJ'~~zrwall~wiCZ City Manager ~Martin Lyons Assistant City ManagerlTreasurer -12- -13- FINANCIAL SECTION -14- INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS -15-   The City on signifi changes in identify a fund issue with addi page 4 of The perio reporting FINANC A. The gove activ B. The expe C. The $399 D. The USING T The finan individual questions, The City' organizati Township blended in of Evanston ficant financia n the City's fi ny material d es or concern itional inform this report. od for this rep will show sig IAL HIGHL City's net as ernmental net vities net asset governmenta enses decrease business-type 9,183 or 1.5% total cost of a THIS ANNUA ncial statemen l funds. Both , broaden a ba 's financial r ions for whi p Board of Tr nto the primar (the City) Di al issues, (2) inancial posit deviations from s. We encou mation that w port is 10 mo gnificant chan LIGHTS ssets increase assets decre ts increased b al activities re ed by $19,831 e activities re % from the pri all City progra AL REPORT nt's focus is perspectives asis for comp eporting incl ch the City rustees are th ry governmen ( iscussion and ) provide an ion (its ability m the financi urage readers t e have furnis onths as oppo nges in incom ed by $2,694 eased by $11 by $14,247,13 evenue decrea 1,379 or 15.6 evenue decrea or year. ams decrease T on both the (government parison and en ludes the fun is accountab he same indiv nt for financia (Unaudited)  D d Analysis is n overview o y to address t ial plan (the a to consider th shed in our l osed to a trad me statement r 4,435 or 0.9% ,552,701 or 1 36 or 6.3% fro ased by $31,6 %. ased by $1,55 ed by $20,230 City as a w t-wide and m nhance the Cit nds of the Ci ble (compone viduals as the al reporting p MAN DISCUSSI DECE designed to ( of the City's the next and s approved bud he informatio etter of trans ditional 12 m reporting from % from the p 15.1% from p om prior year 689,730 or 2 50,696 or 4.7 0,562 or 13.2% whole (govern major fund) all ty's accountab ity (primary ent units - th e City Counc purposes. NAGEME ON AND EMBER 3 (1) assist the financial act subsequent ye dget), and (5) on presented h smittal, which month period. m the prior ye prior fiscal y prior year and r. 3.3% from th 7%. The expe %. nment-wide) low the user t bility. government) he Township cil members. ENT’S ANALYS 1, 2011 reader in foc tivity, (3) id ear challenges identify indiv here in conjun h can be foun As such var ear. year reported d the business he prior year. enses decreas and on the to address rel ) and additio p). The Eva The Towns SIS cusing dentify s), (4) vidual nction nd on riance d. The s-type . The sed by major levant onally, anston ship is -18-  (Unaudited)  REPORTING THE CITY AS A WHOLE Government-wide Financial Statements The City's annual report includes two government-wide financial statements. These statements provide both short-term and long-term information about the City's overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The first of these government-wide statements is the Statement of Net Assets. This is the City-wide statement of financial position presenting information that includes all the City's assets and liabilities, with the difference reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating. Evaluation of the overall health of the City would extend to other non-financial factors such as diversification of the taxpayer base or the condition of City infrastructure in addition to the financial information provided in this report. The second government-wide statement is the Statement of Activities which reports how the City's net assets changed during the current fiscal period. All current period revenues and expenses are included regardless of when the cash was received or paid. An important purpose of the design of the statement of activities is to show the financial reliance of the City's distinct activities or functions on revenues provided by the City's taxpayers. Both government-wide financial statements distinguish governmental activities of the City that are principally supported by taxes and intergovernmental revenues, such as grants, from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activities include general government, public safety, public service, fleet service, insurance fund, and culture and recreation. Business-type activities include water and sewer utilities, parking, and garages. Fiduciary activities, such as employee pension plans and agency funds, are not included in the government-wide statements since these assets are not available to fund City programs. The government-wide financial statements are presented on pages 27 – 30 of this report. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The City uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the City's most significant funds, rather than the City as a whole. Major funds are separately reported, while all others are combined into a single aggregated presentation. Individual fund data for non-major funds is provided in the form of combining schedules in a later section of this report. The City has three kinds of funds: Governmental funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, the focus is very different with fund statements providing a distinctive view of the City's governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the period. They are useful in evaluating annual -19-  (Unaudited)  financing requirements of governmental programs and the commitment of spendable resources for the near-term. Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of the short-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. Budgetary comparison statement for General Fund is included in the required supplementary section of this report. Budgetary comparison schedules for various special revenue funds and the debt service funds can be found in the supplementary information section of this report. These statements and schedules demonstrate compliance with the City's adopted and final revised budget. The basic government fund financial statements are presented on pages 31 -32 of this report. Proprietary funds reported in the fund financial statements generally report services for which the City charges customers a fee. There are two kinds of proprietary funds. These are enterprise funds and internal service funds. Enterprise funds essentially encompass the same functions reported as business- type activities in the government-wide statements. Services such as the water utilities and the parking garages are provided to customers external to the City organization. Internal service funds provide services and charge fees to customers within the City organization, such as equipment services (repair and maintenance of city vehicles) and the insurance fund. Because the City's internal service funds primarily serve governmental functions, they are included within the governmental activities of the government- wide financial statements. Proprietary fund statements and statements for discretely presented component units (reporting is similar to proprietary funds) provide both short-term and long-term financial information consistent with the focus provided by the government-wide financial statements but with more detail for the water fund and the Township. Individual fund information for internal service funds is found in combining schedules in a later section of this report. The basic proprietary fund financial statements are presented on pages 34 - 38 of this report. Fiduciary funds such as the Police and Firefighter's pension plans are reported in the fiduciary fund financial statements, but are excluded from the government-wide reporting. Fiduciary fund financial statements report resources that are not available to fund City programs. These financial statements report similarly to proprietary funds. The basic fiduciary fund financial statements are presented on pages 39 - 40 of this report. Notes to the financial statements The accompanying notes to financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 41 of this report. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligations to provide -20-  (Unaudited)  pension benefits to its employees. Other supplementary information includes detail by fund and component unit for receivables, payables, transfers, and payments within the reporting entity. Required supplementary information can be found on pages 98 - 102 of this report. Major funds and component units are reported in the basic financial statements, as discussed. Combining statements, individual statements and schedules for non- major and internal service funds are presented in a subsequent section of this report beginning on page 106. Additional information on capital assets and long-term debt can be found on page 63 and 73 respectively. Financial Analysis of the City as a Whole The City's combined net assets increased by $2,694,435 from $304,668,761 to $307,363,196. STATEMENT OF NET ASSETS Governmental Activities Business-type Activities Total Primary Government 2011 2010-11 2011 2010-11 2011 2010-11 Current and Other Assets 124,910,803$ 114,729,694$31,732,736$ 28,480,227$ 156,643,539$ 143,209,921$ Capital Assets 169,738,549 164,394,767 331,612,417 328,457,846 501,350,966 492,852,613 Total Assets 294,649,352 279,124,461 363,345,153 356,938,073 657,994,505 636,062,534 Long-Term Liabilities 169,788,442 160,885,656 117,743,309 126,384,704 287,531,751 287,270,360 Other Liabilities 59,671,619 41,496,813 3,427,939 2,626,600 63,099,558 44,123,413 Total Liabilities 229,460,061 202,382,469 121,171,248 129,011,304 350,631,309 331,393,773 Net Assets Investment in Capital assets, net of Debt 57,662,625 49,483,230 215,754,541 207,161,600 273,417,166 256,644,830 Restricted 31,559,331 23,186,893 1,034,375 1,624,016 32,593,706 24,810,909 Unrestricted (24,032,665) 4,071,869 25,384,989 19,141,153 1,352,324 23,213,022 Total Net Assets 65,189,291$ 76,741,992$ 242,173,905$227,926,769$307,363,196$ 304,668,761$   The City's total revenues decreased by $33,240,426 or 19.7%. The City's total expenses for all programs decreased by $20,230,562, or 13.2%. The reductions in revenues and expenses are primarily because of a ten month period compared to a twelve month prior year. Governmental activity revenues decreased by $31,689,730 in the current fiscal period. Again, this is mainly due to a ten month period resulting in reduction of major revenues like Property Tax, Sales Tax, Income Tax, Grants, Permits and Licenses. Net expenses in the governmental activities decreased from $127,504,455 to $107,673,076 and overall revenues decreased from $169,130,651to $135,890,225 compared to previous fiscal year mainly due to the shortened fiscal period. Governmental Funds: The governmental activities experienced a net assets balance decrease of $11,552,701. This was primarily due to a shortened fiscal period resulting in reduction of major revenues and expenses. Additionally, reductions in revenues were much higher than those in expenses resulting in a net decrease. This can be attributed to the seasonal nature of some of the major revenues and expenses including contractual payments. Business Funds: The business-type activities fund balance experienced an increase in net assets of $14,247,136, primarily due to the surplus in the Sewer Fund. The surplus was mainly derived from the transfer from government activities in the approximate amount of $8 million. -21-  (Unaudited)  The following table provides a summary of the City's changes in net assets: STATEMENT OF CHANGES IN NET ASSETS Governmental Activities Business-type Activities Total Primary Government 2011 2010-11 2011 2010-11 2011 2010-11 Revenue Program Revenues: Charges for services 22,328,862$ 27,437,741$ 31,573,817$ 33,118,200$ 53,902,679$ 60,555,941$ Operating grants and contributions 9,861,000 9,851,363 - - 9,861,000 9,851,363 Capital grants and contributions 3,940,785 8,026,115 - - 3,940,785 8,026,115 General Revenues: Sales taxes 13,494,930 15,577,087 - - 13,494,930 15,577,087 Property taxes 33,399,439 47,039,986 - - 33,399,439 47,039,986 Utility taxes 6,375,788 7,872,181 - - 6,375,788 7,872,181 Other taxes 14,867,886 19,628,769 - - 14,867,886 19,628,769 Investment income 31,615 556,793 16,103 22,416 47,718 579,209 Total Revenue 104,300,305 135,990,035 31,589,920 33,140,616 135,890,225 169,130,651 Expenses General management and support 17,911,466 17,517,168 - - 17,911,466 17,517,168 Public safety 43,464,481 53,226,114 - - 43,464,481 53,226,114 Public works 12,399,465 15,625,868 - - 12,399,465 15,625,868 Health and human resources development 3,546,727 4,540,954 - - 3,546,727 4,540,954 Recreation and cultural opportunities 15,606,639 20,142,331 - - 15,606,639 20,142,331 Housing and economic development 11,630,331 10,857,192 - - 11,630,331 10,857,192 Interest 3,113,967 5,594,828 - - 3,113,967 5,594,828 Water - - 7,449,467 8,712,801 7,449,467 8,712,801 Sewer - - 7,083,350 8,784,230 7,083,350 8,784,230 Solid Waste - - 4,316,692 - 4,316,692 - Motor vehicle parking system - - 6,673,205 8,424,866 6,673,205 8,424,866 Total Expense 107,673,076 127,504,455 25,522,714 25,921,897 133,195,790 153,426,352 Increase in net assets before transfers (3,372,771) 8,485,580 6,067,206 7,218,719 2,694,435 15,704,299 Transfers (8,179,930) (99,096) 8,179,930 99,096 - - Increase/(Decrease) in Net Assets (11,552,701) 8,386,484 14,247,136 7,317,815 2,694,435 15,704,299 Net Assets - Beginning 76,741,992 68,355,508 227,926,769 220,608,954 304,668,761 288,964,462 Net Assets - Ending 65,189,291$ 76,741,992$ 242,173,905$ 227,926,769$ 307,363,196$ 304,668,761$ -22-  (Unaudited)  Financial Analysis of the City's Funds Governmental Funds As discussed, governmental funds are reported in the fund statement with a short-term inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the period in comparison with upcoming financing requirements. Governmental funds reported fund balances of $62,870,200 as of December 31, 2011 which includes $32,353,524 restricted, $1,419,463 non- spendable, $805,575 committed, $17,663,815 assigned and $10,627,823 unassigned fund balance. The restricted fund balance consists of amounts required to be set aside by external authorities. Non-spendable amount represents prepaid items for General Obligation Debt and Special Service District Number 5. Major Governmental Funds The General Fund is the City's primary operating fund and the largest source of day-to-day service delivery. The fund balance of the General Fund decreased by $3,610,583 primarily due to the reporting of substantially lower amount of Property Tax revenues because of the change in fiscal period. Excess of expenditures over revenues in the amount of $7,727,348 was partially offset by inter-fund transfers to the General Fund. Some of the major revenues that came in above budget included the Sales Tax, Use Tax, Athletic Contest Tax, Real Estate Transfer Tax, Liquor Tax, Parking Tax and Vehicle License Fees. Conversely, Utility Tax, Property Tax and Building Permit revenues were lower than budgeted. Most of the departments spent less than their budget with the exception of Police and the City Clerk’s Office, with the entire General Fund being below the 2011 Adopted Budget. The Capital Improvements Fund accounts for the City's governmental funds capital improvement program. The program includes improvements to public buildings, paving of city streets, improvement and development of recreation facilities and other improvements. The fund balance of the Capital Improvements Fund decreased by $158,684, from $5,905,344 to $5,746,660. For fiscal period 2011 funding for capital projects was roughly equal to total capital outlays and inter-fund transfers to other funds in order to maintain a fund balance necessary to begin each capital construction season. The fund balance of the General Obligation Debt Fund decreased by $2,680,044, from $5,309,064 to $2,629,020. Reporting of lower Property Tax revenues because of the change in the fiscal period from February to December resulted in a lower fund balance. The Employer Pension Contribution Fund is used to account for the recognition of applicable tax revenues and employer contributions to the Pension Trust Funds. These contributions represent the City's pension expense for police and firefighters. This fund continues to be reported as a major fund with an increase in assets and liabilities of $1,226,713 from the last fiscal year. Combined Non-Major Governmental Funds Combined non-major fund balances totaled $36,101,351, a decrease of $1,994,243 from prior year of $38,095,594. Non-major funds with surpluses for the fiscal period include Motor Fuel, Neighborhood Improvement, Home Fund, SSD#5, Howard Ridge TIF and West Evanston TIF. Non-major funds with deficits for the period include the Economic Development, Emergency Telephone System, Library Endowment, Affordable Housing, Community Development Loan, SSD#4, Township, Southwest TIF, Howard Hartrey TIF, Washington National TIF and Special Assessment Capital Project Fund. -23-  (Unaudited)  Proprietary Funds The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long-term information about financial status. The proprietary funds operated by the City are the Water, Sewer, Solid Waste and Parking Funds. The Water, Sewer and Solid Waste Funds have a combined increase of $12,562,012 in the net assets mainly because of $8 million transfer from governmental activities to the Sewer Fund. The Parking Fund added $1,685,124 to the net assets during the period primarily due to the reduced operating and interest expenses. Although fund balances in these proprietary funds showed an overall healthy increase, it is important to keep in mind that these funds carry a substantial debt level therefore, large debt payments will be required in the future. Internal Service Funds The City's combined internal service fund’s net assets decreased by $940,892 from $2,774,857 as of February 28, 2011 to $1,833,965 as of December 31, 2011. Fleet Fund reported an increase in net assets of $246,383 primarily due to reduced operating expense. The net deficit in the Insurance Fund went up by $1,187,275 due to a recording of potential claim liabilities. General Fund Budgetary Highlights Total budgetary revenues for the General Fund were $69,180,228 while total expenditures were $70,952,076. Actual revenues in the General Fund came in slightly higher than budget by $100,491. Total expenditures in the General Fund were lower than budgeted amounts by $2,244,426 mainly due to continuous restructuring of departments and other cost saving measures in various operating divisions. The actual net deficiency of $1,771,848 was offset by $4,116,765 in transfers from other funds. Capital Assets The City established a policy of capitalizing equipment and vehicles with $20,000 or more in value and infrastructure and building improvements with $100,000 or more in value. The City's investment in capital assets, net of accumulated depreciation, for governmental and business-type activities, as of December 31, 2011, was $501,350,966. The governmental funds capital assets increased by $5,343,782 while business type capital assets increased by $3,154,571. Overall, capital assets increased by 1.7% for the City as a whole. The Governmental Funds reported an increase in building improvement and infrastructure assets including improvements in parks, streets and alleys. As for the Business Funds, Water, Parking and Sewer all reported an increase in net capital assets. Readers desiring more detailed information on capital asset activity should refer to Note 6 in the Notes to the Financial Statements. Long-Term Debt As of December 31, 2011, the City had total general obligation bonded debt outstanding of $157,695,000 of which $35,115,794 was for business type activities to be paid for by the City's Parking, Water, Solid Waste and Sewer Funds. The City's general obligation debt service payments for 2011 totaled $15,080,000 of which, $7,016,200 was abated. During the current period, the City issued $19,240,000 in general obligation bonds. As a home rule government under Illinois law, there is no legal debt limit for the City. Readers desiring more detailed information on long-term debt should refer to Note 9 in the Notes to the Financial Statements. -24-  (Unaudited)  Bond Ratings The City's general obligation bonds are rated AAA by Moody's Investor Rating Service and AAA by Fitch Ratings. The City's water revenue bonds are rated Aa1 and AA for uninsured issues. Economic Factors Evanston is a diverse community consisting primarily of residential homes, several nonprofit organizations including a very well-known private university, two hospitals, and many smaller scale retail shops and restaurants as well as some popular big box retailers. In general, economically sensitive revenues such as Sales Tax, Use Tax and Real Estate Transfer Tax came in a little higher than budgeted revenues while Building permits were below budget. The unemployment rate in Evanston has stayed slightly below same level as many other cities in the State  due in part to the stable economy that includes Northwestern University. The City continues to maintain its lower unemployment rate compared to state and federal unemployment levels. The primary employers in the City include Northwestern University, two hospitals, the local high school, and elementary school district, Rotary International, several not-for-profit organizations, and numerous retail businesses and restaurants. Due to the high number of nonprofit organizations which make a large portion of Evanston's workforce, the City has been somewhat insulated from the economic downturn in employment areas. Contacting the City's Financial Management This financial report is designed to provide a general overview of the City's finances, comply with finance-related laws and regulations, and demonstrate the City's commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City Administrative Services Department at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201 or access the website at www.cityofevanston.org. -25- BASIC FINANCIAL STATEMENTS -26- CITY OF EVANSTON, ILLINOIS Statement of Net Assets Governmental Business-type Activities Activities Total Cash and equivalents 45,538,237$ 21,259,508$ 66,797,745$ Investments 2,594,797 - 2,594,797 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 53,053,786 - 53,053,786 Accounts - 4,281,368 4,281,368 Notes 6,104,245 - 6,104,245 Special assessments 737,084 - 737,084 Accrued interest 9,435 - 9,435 Other 3,094,057 54,922 3,148,979 Due from other governments 9,235,073 - 9,235,073 Internal balances 1,529,624 (1,529,624) - Inventories 573,872 825,473 1,399,345 Restricted assets Cash and equivalents and investments - 5,992,417 5,992,417 Prepaid items 1,993,211 599,672 2,592,883 Other assets 37,382 249,000 286,382 Property held for resale 410,000 - 410,000 Capital assets Capital assets not being depreciated 25,635,320 7,676,037 33,311,357 Capital assets (net of accumulated depreciation)144,103,229 323,936,380 468,039,609 Total Assets 294,649,352 363,345,153 657,994,505 December 31, 2011 Primary Government The accompanying notes are an integral part of this statement. -27- Governmental Business-type Activities Activities Total Vouchers payable 5,664,057$ 2,622,007$ 8,286,064$ Accrued payroll 3,019,828 - 3,019,828 Interest payable 794,193 82,082 876,275 Other payables 354,377 6,000 360,377 Due to other governments 605,405 - 605,405 Due to pension funds 2,362,468 - 2,362,468 Payable from restricted assets Vouchers payable - 204,266 204,266 Interest payable - 513,584 513,584 Unearned revenues 46,871,291 - 46,871,291 Noncurrent liabilities Payable from restricted assets - due within one year - 11,800,112 11,800,112 Due within one year 15,401,000 4,095,491 19,496,491 Due in more than one year 154,387,442 101,847,706 256,235,148 Total Liabilities 229,460,061 121,171,248 350,631,309 Investment in capital assets, net of related debt 57,662,625 215,754,541 273,417,166 Restricted Highway maintenance 1,200,244 - 1,200,244 Emergency telephone system 1,310,758 - 1,310,758 Library projects 3,043,452 - 3,043,452 HUD approved projects 5,145,497 - 5,145,497 Neighborhood improvements 2,368,432 - 2,368,432 Economic Development 11,538,268 - 11,538,268 Debt service 5,116,832 634,375 5,751,207 Township 1,835,848 - 1,835,848 Capital project funds - 400,000 400,000 Unrestricted (24,032,665) 25,384,989 1,352,324 Total Net Assets 65,189,291$ 242,173,905$ 307,363,196$ Primary Government -28- CITY OF EVANSTON, ILLINOIS Statement of Activities Program Revenues Operating Charges for Grants and Expenses Services Contributions Functions/Programs Governmental activities: General management and support 17,911,466$ 9,218,649$ -$ Public safety 43,464,481 1,204,779 178,639 Public works 12,399,465 1,005,378 1,601,318 Health and human resource development 3,546,727 1,235,182 540,725 Recreation and cultural opportunities 15,606,639 4,587,118 - Housing and economic development 11,630,331 5,077,756 7,540,318 Interest 3,113,967 - - Total governmental activities 107,673,076 22,328,862 9,861,000 Business-type activities: Water 7,449,467 12,368,533 - Sewer 7,083,350 11,376,601 - Solid Waste 4,316,692 2,900,172 - Motor vehicle parking system 6,673,205 4,928,511 - Total business-type activities 25,522,714 31,573,817 - Total 133,195,790$ 53,902,679$ 9,861,000$ General revenues: Property tax Other taxes Personal property replacement tax Sales and home rule tax Income tax Utility tax Miscellaneous Investment income Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending For the Ten Months ended December 31, 2011 The accompanying notes are an integral part of this statement. -29- Net (Expense) Revenue and Changes in Net Assets Capital Grants and Governmental Business-type Contributions Activities Activities Total -$ (8,692,817)$ -$ (8,692,817)$ - (42,081,063) - (42,081,063) 3,921,893 (5,870,876) - (5,870,876) - (1,770,820) - (1,770,820) - (11,019,521) - (11,019,521) 18,892 1,006,635 - 1,006,635 - (3,113,967) - (3,113,967) 3,940,785 (71,542,429) - (71,542,429) - - 4,919,066 4,919,066 - - 4,293,251 4,293,251 - - (1,416,520) (1,416,520) - - (1,744,694) (1,744,694) - - 6,051,103 6,051,103 3,940,785$ (71,542,429) 6,051,103 (65,491,326) 33,399,439 - 33,399,439 7,324,567 - 7,324,567 1,007,067 - 1,007,067 13,494,930 - 13,494,930 4,924,177 - 4,924,177 6,375,788 - 6,375,788 1,612,075 - 1,612,075 31,615 16,103 47,718 (8,179,930) 8,179,930 - 59,989,728 8,196,033 68,185,761 (11,552,701) 14,247,136 2,694,435 76,741,992 227,926,769 304,668,761 65,189,291$ 242,173,905$ 307,363,196$ -30- CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet General Employer Nonmajor Total Capital Obligation Pension Governmental Governmental General Improvements Debt Contribution Funds Funds Cash and equivalents 11,523,030$ 6,216,757$ 295,715$ -$ 24,776,181$ 42,811,683$ Investments - - - - 2,594,797 2,594,797 Receivables Property taxes (net of allowance) 16,641,472 - 12,078,641 14,573,987 9,759,686 53,053,786 Notes (net of allowance)- - - - 6,104,245 6,104,245 Special assessments - - - - 737,084 737,084 Accrued interest - - - - 9,435 9,435 Other 2,253,299 - - - 816,511 3,069,810 Property held for resale - - - - 410,000 410,000 Prepaid items - - 1,040,610 - 378,853 1,419,463 Due from other governments 7,400,692 302,480 - 141,520 1,390,381 9,235,073 Due from other funds 810,429 1,182,100 31,766 - 758,677 2,782,972 Other assets 37,382 - - - - 37,382 Total Assets 38,666,304$ 7,701,337$ 13,446,732$ 14,715,507$ 47,735,850$ 122,265,730$ Liabilities Vouchers payable 1,720,394$ 1,352,754$ 251$ -$ 1,717,228$ 4,790,627$ Accrued payroll 3,019,828 - - - - 3,019,828 Compensated absences payable 60,117 - - - - 60,117 Other 354,377 - - - - 354,377 Due to other governments - 601,923 - - 3,482 605,405 Due to other funds 666,790 - 300,000 2,104,685 622,410 3,693,885 Deferred revenues 14,451,629 - 10,517,461 12,610,822 9,291,379 46,871,291 Total Liabilities 20,273,135 1,954,677 10,817,712 14,715,507 11,634,499 59,395,530 Fund Balances Nonspendable - Prepaid items - - 1,040,610 - 378,853 1,419,463 Restricted Highway maintenance - - - - 1,200,244 1,200,244 Emergency telephone system - - - - 1,310,758 1,310,758 Library projects - - - - 3,043,452 3,043,452 HUD approved projects - - - - 5,145,497 5,145,497 Neighborhood improvements - - - - 2,368,432 2,368,432 Economic Development - - - - 11,538,268 11,538,268 Debt service - - 1,588,410 - 4,322,615 5,911,025 Township - - - - 1,835,848 1,835,848 Committed - Economic Development - - - - 805,575 805,575 Assigned 7,590,232 5,746,660 - - 4,326,923 17,663,815 Unassigned 10,802,937 - - - (175,114) 10,627,823 Total Fund Balances 18,393,169 5,746,660 2,629,020 - 36,101,351 62,870,200 Total Liabilities and Fund Balances 38,666,304$ 7,701,337$ 13,446,732$ 14,715,507$ 47,735,850$ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.163,419,424 Long-term liabilities, including bonds payable, compensated absences payable, and pension contributions payable, are not due and payable in the current period and therefore, are not reported in the governmental funds.(160,685,700) OPEB liability payable is not due and payable in the current period and therefore, is not reported in the governmental funds.(1,454,405) Interest accrual from last interest payment (January 1, 2011) to December 31, 2011.(794,193) The net assets of the internal service fund are included in the governmental activities in the statement of net assets.1,833,965 Net assets of governmental activities 65,189,291$ December 31, 2011 Assets Liabilities and Fund Balances The accompanying notes are an integral part of this statement. -31- CITY OF EVANSTON, ILLINOIS Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances General Employer Nonmajor Total Capital Obligation Pension Governmental Governmental General Improvements Debt Contribution Funds Funds Revenues Taxes 30,242,619$ -$ 7,124,696$ 9,733,249$ 9,365,245$ 56,465,809$ Licenses and permits 6,775,866 - - - - 6,775,866 Special assessments - - - - 235,028 235,028 Intergovernmental 13,364,686 18,892 - - 9,799,200 23,182,778 Charges for services 6,283,196 - - - - 6,283,196 Fines and forfeits 3,279,785 - - - - 3,279,785 Investment income 2,073 17,546 1,637 - 391 21,647 Miscellaneous 3,276,503 744,333 - - 112,880 4,133,716 Total Revenues 63,224,728 780,771 7,126,333 9,733,249 19,512,744 100,377,825 Expenditures Current General management and support 11,774,893 166,886 17,528 - 1,634,753 13,594,060 Public safety 31,367,067 66,640 - 9,733,249 973,428 42,140,384 Public works 6,339,072 145,957 - - 1,089,070 7,574,099 Health and human resource development 2,887,812 - - - 700,000 3,587,812 Recreation and cultural opportunities 15,980,974 100,181 - - 111,000 16,192,155 Housing and economic development 2,462,258 - - - 9,536,129 11,998,387 Debt service Principal 119,993 243,764 8,847,333 - 895,000 10,106,090 Interest 20,007 - 4,050,865 - 313,111 4,383,983 Fiscal agent fees - - 79,156 - - 79,156 Capital outlay - 5,091,436 - - 740,120 5,831,556 Total Expenditures 70,952,076 5,814,864 12,994,882 9,733,249 15,992,611 115,487,682 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,727,348) (5,034,093) (5,868,549) - 3,520,133 (15,109,857) Other Financing Sources (Uses) Transfers in 4,793,745 - 1,045,220 - - 5,838,965 Transfers out (676,980) (302,130) (8,099,352) - (5,514,376) (14,592,838) Issuance of debt - 5,120,000 10,090,000 - - 15,210,000 Premiums and discounts - 57,539 152,637 - - 210,176 Total Other Financing Sources (Uses) 4,116,765 4,875,409 3,188,505 - (5,514,376) 6,666,303 Net Change in Fund Balances (3,610,583) (158,684) (2,680,044) - (1,994,243) (8,443,554) Fund Balances -Beginning 22,003,752 5,905,344 5,309,064 - 38,095,594 71,313,754 Fund Balances - Ending 18,393,169$ 5,746,660$ 2,629,020$ -$ 36,101,351$ 62,870,200$ For the Ten Months ended December 31, 2011 The accompanying notes are an integral part of this statement. -32- CITY OF EVANSTON, ILLINOIS Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (8,443,554)$ 4,343,052 Reclassification of G.O. debt Series 2010B 210,899 12,629,420 (15,420,176) (4,185,464) (85,593) 339,607 Internal service funds are reported separately in the fund financial statements.(940,892) Change in net assets of governmental activities (11,552,701)$ The repayment of the principal of long-term debt payable consume the current financial resources of governmental funds. These transactions, however, have no effect on net assets. 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 Interest accrual for the ten months ended December 31, 2011. OPEB benefit expense reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as expenditures in governmental funds. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Ten Months ended December 31, 2011 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Gain or loss on assets removed are also reported in the statement of activities. Issuance of Bonds provides current financial resources to governmental funds. This transaction has no effect on net assets. Governmental funds also report the effect of bonds premiums, discounts and similar items when debt is first issued. The accompanying notes are an integral part of this statement. -33- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Net Assets Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer Solid Waste System Total Funds Current Assets Cash and equivalents 8,510,923$ -$ 72,266$ 12,676,319$ 21,259,508$ 2,726,554$ Restricted cash and equivalents and investments 1,034,375 4,958,042 - - 5,992,417 - Receivables Accounts - billed 699,514 242,739 92,170 - 1,034,423 - Accounts - unbilled 831,869 2,016,915 398,161 - 3,246,945 - Other - - - 54,922 54,922 24,247 Due from other funds - 1,151,945 - 4,000,000 5,151,945 115,706 Inventories 699,003 126,470 - - 825,473 573,872 Prepaid Expenses 599,672 - - - 599,672 573,748 Total Current Assets 12,375,356 8,496,111 562,597 16,731,241 38,165,305 4,014,127 Noncurrent Assets Capital Assets Capital assets not being depreciated 4,573,764 - - 3,102,273 7,676,037 - Capital assets being depreciated 78,369,991 243,834,896 - 81,980,021 404,184,908 21,486,259 Less accumulated depreciation (21,794,125) (40,923,838) - (17,530,565) (80,248,528) (15,167,134) Total Capital Assets 61,149,630 202,911,058 - 67,551,729 331,612,417 6,319,125 Other Assets Notes Receivable - - - 249,000 249,000 - Total Noncurrent Assets 61,149,630 202,911,058 - 67,800,729 331,861,417 6,319,125 Total Assets 73,524,986 211,407,169 562,597 84,531,970 370,026,722 10,333,252 December 31, 2011 Business-type Activities- Enterprise Funds Assets The accompanying notes are an integral part of this statement. -34- Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer Solid Waste System Total Funds Current Liabilities Vouchers payable 1,024,033$ 216,835$ 370,249$ 1,010,890$ 2,622,007$ 873,430$ Vouchers payable - restricted 204,266 - - - 204,266 - Interest payable - - 274 81,808 82,082 - Interest payable - restricted 41,216 472,368 - - 513,584 - Revenue bonds payable 575,000 - - - 575,000 - Compensated absences payable 268,007 60,944 32,954 53,258 415,163 21,524 General obligation bonds payable 169,534 - 14,259 2,921,536 3,105,329 - General obligation bonds payable - restricted - 3,094,209 - - 3,094,209 - Claims payable - - - - - 2,106,361 Notes payable - IEPA - restricted 67,505 8,638,398 - - 8,705,903 - Due to other funds 132,078 4,057,827 1,512,669 978,995 6,681,569 37,637 Other Payable 6,000 - - - 6,000 - Total Current Liabilities 2,487,639 16,540,581 1,930,405 5,046,487 26,005,112 3,038,952 Long-Term Liabilities Notes payable - IEPA 1,215,087 69,160,282 - - 70,375,369 - General obligation bonds payable 3,839,604 5,156,693 127,458 19,792,501 28,916,256 - OPEB liability payable 106,498 31,141 5,626 31,272 174,537 37,790 Revenue bonds payable 595,000 - - - 595,000 - Unamortized bond discount/premium 47,131 215,491 - 541,534 804,156 - Compensated absences payable 293,382 66,714 36,074 58,301 454,471 73,360 IMRF Pension contributions payable 313,722 77,011 34,745 102,438 527,916 - Claims payable - - - - - 5,349,185 Total Long-Term Liabilities 6,410,424 74,707,332 203,903 20,526,046 101,847,705 5,460,335 Total Liabilities 8,898,063 91,247,913 2,134,308 25,572,533 127,852,817 8,499,287 Invested in capital assets, net of related debt 55,345,560 116,645,985 - 43,762,996 215,754,541 6,319,125 Restricted for debt service 634,375 - - - 634,375 - Restricted for capital improvements 400,000 - - - 400,000 - Unrestricted 8,246,988 3,513,271 (1,571,711) 15,196,441 25,384,989 (4,485,160) Total net assets (deficit)64,626,923$ 120,159,256$ (1,571,711)$ 58,959,437$ 242,173,905$ 1,833,965$ Liabilities Net Assets Business-type Activities- Enterprise Funds -35- CITY OF EVANSTON, ILLINOIS Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer Solid Waste System Total Funds Operating Revenues Charges for services 10,766,262$ 11,324,113$ 2,713,827$ 4,916,930$ 29,721,132$ 18,038,335$ Miscellaneous 1,602,271 52,488 186,345 11,581 1,852,685 49,679 Total Operating Revenues 12,368,533 11,376,601 2,900,172 4,928,511 31,573,817 18,088,014 Operating Expenses Excluding Depreciation Administration 786,111 1,492,723 916,242 1,395,252 4,590,328 - Operations 5,360,541 480,936 3,396,751 2,701,007 11,939,235 18,624,529 Total Operating Expenses Excluding Depreciation 6,146,652 1,973,659 4,312,993 4,096,259 16,529,563 18,624,529 Operating Income (Loss) Before Depreciation 6,221,881 9,402,942 (1,412,821) 832,252 15,044,254 (536,515) Depreciation 1,090,433 2,746,965 - 1,811,148 5,648,546 1,106,666 Operating Income (Loss)5,131,448 6,655,977 (1,412,821) (978,896) 9,395,708 (1,643,181) Nonoperating Revenues (Expenses) Investment income 6,568 2,094 9 7,432 16,103 587 Interest expense (169,687) (2,347,051) (3,699) (881,708) (3,402,145) - Bond expenses and amortization of discount 70,692 (72,887) - 115,910 113,715 - Amortization of bond premium - 57,212 - - 57,212 - Other expenses (150) - - - (150) - Gain (loss) on disposition of assets (113,237) - - - (113,237) 85,109 Total Nonoperating Revenues (Expenses)(205,814) (2,360,632) (3,690) (758,366) (3,328,502) 85,696 Income (Loss) before transfers and contributions 4,925,634 4,295,345 (1,416,511) (1,737,262) 6,067,206 (1,557,485) Capital Contribution - Governmental Activities (21,349) (37,100) (155,200) 2,750 (210,899) 253,549 Transfers In (Out) Debt Service - 8,099,352 - - 8,099,352 (27,210) Water - - - - - 390,254 Washington National Tax Increment District - - - 3,419,636 3,419,636 - General (3,128,159) - - - (3,128,159) - Total Transfers In (Out)(3,128,159) 8,099,352 - 3,419,636 8,390,829 363,044 Change in Net Assets 1,776,126 12,357,597 (1,571,711) 1,685,124 14,247,136 (940,892) Total Net Assets - Beginning 62,850,797 107,801,659 - 57,274,313 227,926,769 2,774,857 Total Net Assets (Deficit)- Ending 64,626,923$ 120,159,256$ (1,571,711)$ 58,959,437$ 242,173,905$ 1,833,965$ For the Ten Months ended December 31, 2011 Business-type Activities- Enterprise Funds The accompanying notes are an integral part of this statement. -36- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer Solid Waste System Total Funds Cash Flows from Operating Activities Receipts from customers and users 12,915,567$ 11,476,030$ 2,409,841$ 7,143,987$ 33,945,425$ 18,689,514$ Receipts from interfund services provided 19,768 - 1,512,669 - 1,532,437 - Payments to suppliers (4,365,960) (1,476,091) (3,026,502) (1,776,162) (10,644,715) (2,892,957) Payments to employees (493,530) (1,476,649) (806,843) (1,291,255) (4,068,277) (2,844,369) Payments for interfund services provided (23,180) (1,151,945) - (136,396) (1,311,521) (273,588) Payments for insurance premiums - - - - - (11,085,987) Net Cash Provided by (Used for) Operating Activities 8,052,665 7,371,345 89,165 3,940,174 19,453,349 1,592,613 Cash Flows from Noncapital Financing Activities Transfers In (Out) Water - - - - - 390,254 Debt Service - 8,099,352 - - 8,099,352 (27,210) Washington Tax Increment District - - - 3,419,636 3,419,636 - General (3,128,159) - - - (3,128,159) - Net Cash Provided by (Used for) Noncapital Financing Activities (3,128,159) 8,099,352 - 3,419,636 8,390,829 363,044 Cash Flows from Capital and Related Financing Activities Sale of capital assets - - - - - 85,109 Acquisition and construction of capital assets (5,975,724) (554,791) - (2,869,304) (9,399,819) (995,043) Principal prepayment of revenue bonds (575,000) - - - (575,000) - Interest paid on revenue bonds (24,672) - - - (24,672) - Interest prepayment of revenue bonds (24,672) - - - (24,672) - Grants and Contributions - - - 115,910 115,910 253,549 Proceeds from general obligation bonds 3,340,000 690,000 - - 4,030,000 - Principal paid on general obligation bonds (63,662) (2,880,158) (13,483) (2,383,114) (5,340,417) - Interest paid on general obligation bonds (16,170) (621,599) (3,425) (1,064,809) (1,706,003) - Bond expenses 9,550 (65,134) - (74,054) (129,638) - Principal paid on IEPA loans (33,752) (8,103,019) - - (8,136,771) - Interest paid on IEPA loans - (2,132,601) - - (2,132,601) - Proceeds from IEPA grant 483,466 - - - 483,466 Proceeds from IEPA loans 158,893 - - - 158,893 - Net Cash (Used for) Capital and Related Financing Activities (2,721,743) (13,667,302) (16,908) (6,275,371) (22,681,324) (656,385) Cash Flows from Investing Activities Interest income 6,418 2,094 9 7,432 15,953 587 Net Increase (Decrease) in Cash and Equivalents 2,209,181 1,805,489 72,266 1,091,871 5,178,807 1,299,859 Cash and Equivalents Beginning 7,336,117 3,152,553 - 11,584,448 22,073,118 1,426,695 Ending 9,545,298$ 4,958,042$ 72,266$ 12,676,319$ 27,251,925$ 2,726,554$ Reconciliation Cash and equivalents Current Cash 8,510,923$ -$ 72,266$ 12,676,319$ 21,259,508$ 2,726,554$ Restricted Current Cash 1,034,375 4,958,042 - - 5,992,417 - 9,545,298$ 4,958,042$ 72,266$ 12,676,319$ 27,251,925$ 2,726,554$ For the Ten Months ended December 31, 2011 Business-type Activities- Enterprise Funds The accompanying notes are an integral part of this statement.Continued -37- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer Solid Waste System Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) 5,131,448$ 6,655,977$ (1,412,821)$ (978,896)$ 9,395,708$ (1,643,181)$ Depreciation 1,090,433 2,746,965 - 1,811,148 5,648,546 1,106,666 Changes in assets and liabilities Increase/decrease in A/R miscellaneous 547,708 99,429 (490,331) - 156,806 601,500 Other receivables - - - 6,386 6,386 - Prepaid expenses - - - - - (514,133) lnterfund receivable (13,457) (1,151,945) - (136,396) (1,301,798) - Inventories (89,725) 26,613 - - (63,112) (177,412) Compensated absences 106,932 (34,928) 69,028 44,583 185,615 12,109 Claims Payables - - - - - 2,000,343 lnterfund payable 10,045 (1,364) 1,512,669 2,209,090 3,730,440 (273,588) OPEB liability payable 21,772 7,302 5,626 6,938 41,638 8,459 IMRF contributions payable 163,877 43,700 34,745 52,476 294,798 - Unearned revenue (674) - - - (674) - Vouchers payable 266,465 206,673 370,249 518,617 1,362,004 - Vouchers payable (restricted)204,267 (1,227,077) - 406,228 (616,582) - Accounts Payables 613,574 - - - 613,574 471,850 Net Cash Provided by (Used for) Operating Activities 8,052,665$ 7,371,345$ 89,165$ 3,940,174$ 19,453,349$ 1,592,613$ Noncash Investing, Capital and Financing Activities: Business-type Activities- Enterprise Funds For the Ten Months ended December 31, 2011 During 2011, $210,899 of the Series 2010 bonds payable were reallocated to/from governmental activities comprising of reallocation from Water Fund $21,349, Sewer Fund $37,100 and Solid Waste $155,200; and reallocation to Motor Vehicle Parking System of $2,750. Concluded -38- CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets Pension Trust Funds Assets Cash and short-term investments 6,784,662$ Receivables Accrued interest 446,217 Contribution receivable - Due from other funds 2,362,468 Total Receivables 2,808,685 Investments, at fair value U.S. Government and agency obligations 41,355,694 Corporate bonds 13,124,203 Common stock 22,969,373 Mutual funds 40,477,356 Total Investments 117,926,626 Total Assets 127,519,973 Liabilities Vouchers payable 30,088 Net assets held in trust 127,489,885$ December 31, 2011 The accompanying notes are an integral part of this statement. -39- CITY OF EVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Pension Trust Funds Additions Contributions Employer 9,733,249$ Plan members 1,892,085 Other-Donations, Legal Sett.,Surplus Sales 203 Total contributions 11,625,537 Investment income Net appreciation (depreciation) in fair value of investments (764,541) Investment income 3,103,813 Total investment income 2,339,272 Less investment expense 340,072 Net investment income 1,999,200 Total additions 13,624,737 Deductions Benefits 12,670,121 Refunds of contributions 128,188 Administrative expense 160,879 Total deductions 12,959,188 Net increase 665,549 Net assets held in trust for pension benefits Beginning 126,824,336 Ending 127,489,885$ For the Ten Months ended December 31, 2011 The accompanying notes are an integral part of this statement. -40- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page Note 1. Summary of Significant Accounting Policies A. Reporting Entity 44 B. Government-wide and Fund Financial Statements 45 C. Fund Accounting 45 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 46 E. Cash and Equivalents 49 F. Investments 49 G. Inventories & Prepaid Items 49 H. Capital Assets 50 I. Compensated Absences 50 J. Long-Term Obligations 50 K. Self-Insurance 51 L. Property Taxes 51 M. Fund Equity 52 N. Interfund Transactions 53 O. Use of Estimates 53 P. Property held for resale 53 Q. Effect of New Accounting Standards on Current Period Financial Statements 53 R. Conduit Debt 53 Note 2. Reconciliation of Government-wide and Fund Financial Statements A. 54 B. 54 Note 3. Stewardship, Compliance, and Accountability A. Budgetary Information 56 B. Deficit Fund Equity 57 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 58 B. Pooling of Cash and Investments 58 C. Types of Investments 59 D. Deposits 61 E. Reconciliation of Unrestricted and Restricted Cash and Investments 61 Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government- wide Statement of Activities -41- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 5. Receivables A. Summary of Receivables 62 B.Notes Receivable – Special Revenue Funds 62 Note 6. Capital Assets A. Capital Asset Activity 63 B. Construction Commitments 65 Note 7. Interfunds A. Interfund Accounts 66 B. Interfund Transfers 69 C. Capital Contributions 71 Note 8. Operating Leases 72 Note 9. Long-Term Debt A. Changes in Long-Term Debt 73 B. General Obligation Bonds Payable 75 C. Special Service District Bonds Payable 76 D. Revenue Bonds Payable 76 E.Notes Payable – IEPA Loans 77 F. Prior Years' General Obligation Bond Defeasances 77 G. Post Employment benefits other than Pensions (Defined Benefit Plan) 78 Note 10. Fund Equity A. Restrictions of Net Assets - Water Fund 80 B. Restricted Net Assets - Fiduciary Funds 80 C. Assigned Fund Balances 81 Note 11. Individual Fund Activities A. General Obligation Debt Service Fund 82 B. Water Fund 82 C. Special Service District No. 4 82 Note 12. Risk Management – Claims and Judgments 83 -42- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 13. Contingencies 84 Note 14. Joint Ventures A. Solid Waste Agency of Northern Cook County 84 B. Evanston Housing Corporation 86 Note 15. Deferred Compensation Plan 87 Note 16. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description 88 B. Funding Status and Progress 89 C. Annual Pension Cost 89 Police and Firefighters' Pension Plans D. Plan Descriptions 90 E. Summary of Significant Accounting Policies - Basis of Accounting 92 - Method Used to Value Investments 92 F. Contributions and Reserves 93 G. Concentration of Investments 94 H. Five-Year Trend Information – Pension Trust Funds 94 I. Pensions - Detailed Statement of Net Assets 95 J. Pensions - Detailed Statement of Changes in Net Assets 96 K. Pensions - Actuarial Valuations 97 L. Funding Status and Progress 97 -43- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant of the City's accounting policies are described below. A. Reporting Entity Blended Component Unit: The Town of the City of Evanston, Illinois (Township) is a separate legal entity which administers General Assistance, a public welfare program assigned by Illinois law to townships. Eligible clients receive General Assistance for food, shelter, and medical needs. Through the town-fund levy, the Township also supports a number of community action programs, which provide direct services to welfare recipients. The Township is governed by a Township Board of Trustees and provides services within the same geographic boundaries of the City. The Township Board of Trustees are the same individuals as the City Council. The Township board levies taxes and is responsible for adopting the Township budget and approving payment of bills. The Township has two elected officials: the Supervisor and the Assessor, each elected for four-year terms. The Supervisor is responsible for Township funds and for the administration of General Assistance. The Assessor does not actually assess property; that function is carried out by the Cook County Assessor. The Township Assessor serves as a taxpayer's advocate, helping citizens with tax-related questions. The City was incorporated in 1863. The City operates under a Council-Manager form of government, is a home rule municipality as defined by Illinois state law, and provides the following services as authorized by its charter: general management and support, public safety, public works, health and human resource development, recreational and cultural opportunities, and housing and economic development. As required by GAAP, these financial statements present the City (the primary government) and its component unit, an entity for which the City is considered to be financially accountable. Although the component unit is legally a separate entity, it is governed by the same board; therefore, data from this unit is blended with data of the City. The financial statements of the City of Evanston (City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units (hereinafter referred to as "Generally Accepted Accounting Principles" (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Assessor also works to assure equity of assessments, and maintains records of building and demolition permits and of all tax-exempt properties. The Township Board of Trustees can issue debt on its own behalf, and such debt can be issued in the Township’s name alone. The Township is included in the Reporting Entity due to its financial accountability because the Township Board of Trustees are the same individuals as the City Council members. The Township has a March 31 fiscal year-end. Amounts included in this report are as of and for the year ended March 31, 2011. This report is the most recent one available. -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued Complete financial statements for the Township may be obtained at the following address: Town of the City of Evanston 1910 Main Street Evanston, Illinois 60201 Joint Ventures: B. Government-wide and Fund Financial Statements C. Fund Accounting The City uses funds to report on its financial position and the results of its operations. A fund is a separate accounting entity with a self-balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are reported in the supplementary information. The City participates in two joint ventures, which are reported as nonequity governmental joint ventures and are described in Footnote 14. The joint ventures are: City of Evanston and Solid Waste Agency of Northern Cook County (SWANCC) and Evanston Housing Corporation. The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. The effect of interfund activity has been removed from these statements excluding interfund services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Funds are classified into three categories: governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." -45- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Fund Accounting - Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Governmental funds are used to account for all or most of the City's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general capital assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the City not accounted for in some other fund. All Township funds are considered special revenue funds within the governmental funds category. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the City. When these assets are held under the terms of a formal trust agreement, a permanent fund is used. Agency funds generally are used to account for assets that the City holds on behalf of others as their agent. The pension trust fund accounts for the activities of the Police and Firefighters' Pension funds, which accumulate resources for pension benefit payments to retired police and fire personnel. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the City (internal service funds). Internal service funds are included with the governmental funds on the government-wide financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property taxes as available if they are collected within 60 days of the end of the current fiscal period. A six month availability period is used for revenue recognition for all other governmental fund revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be made early in the following year. -46- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued 1.) Taxes 6.) Fines Property Traffic fines Sales (Home Rule) Utility 7.) Intergovernmental Personal property Motor fuel tax allotments Grants 2.) Licenses Supplemental Security Income reimbursements Income taxes 3.) Franchise fees Sales taxes Use tax 4.) Charges for services 8.) Investment income 5.) Recycling program fees and sales The City reports the following major governmental funds: All other revenue items are considered to be measurable and available only when cash is received by the City. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The Capital Improvements Fund accounts for the City's capital improvement program. The program includes improvement to public buildings, paving of City streets, improvement of recreational facilities and other improvements. The Employer Pension Contribution Fund is a special revenue fund which accounts for the recognition of applicable tax revenues and employer contributions to the Pension Trust funds. The following revenues associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The General Obligation Debt is a debt service fund which accumulate monies for the principal and interest payments on general obligation debt. 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. -47- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued The City reports the following major proprietary funds: Additionally, the City reports the following fund types: Amounts reported as program revenues include 1) charges to customers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including assessments. Internally dedicated resources are reported as general revenue rather than as program revenue. Likewise, general revenues include all taxes. The Water Fund accounts for the provision of water services to the residents of the City and the sale of water to the Village of Skokie, Illinois, and the Northwest Water Commission. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operation, maintenance, financing and related debt service, and billing and collection. The Motor Vehicle Parking System accounts for the provision of the public and residential parking facility on Church Street, Maple Avenue, and Sherman Avenue, as well as all the City's parking lots and meters. All activities are accounted for including administration, operations, financing and revenue collection. Solid Waste Fund accounts for the recycling, refuse and yardwaste removal services related fees and expenses. Refuse and yardwaste are contracted out, while recycling is handled by the city staff. Internal Service funds account for the fleet management and insurance services provided to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. The Sewer Fund accounts for the provision of sewer repair and improvement services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, financing, and billing and collection. Proprietary funds distinguish operating revenues and expenses from nonoperating 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 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 nonoperating revenues and expenses. Pension Trust funds account for the activities of the Police and Firefighters' Pension Funds, which accumulate resources for pension benefit payments to qualified public safety employees. The City's business type-activities and enterprise funds apply all applicable GASB guidance as well as relevant Financial Accounting Standards Board (FASB) guidance issued on or before November 30, 1989, unless those guidance conflict or contradict GASB guidance, in which case, GASB prevails. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. -48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – Continued E. Cash and Equivalents F. Investments G. Inventories and Prepaid Items When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. Investments consist of certificates of deposit, treasury obligations, government agency obligations, and insurance contracts with maturities greater than three months. Investments for the pension funds are mostly comprised of treasury obligations, government agency obligations, fixed income and equity mutual funds, and stocks. Investments of the pension trust funds are carried at fair value. Investments with over one year to maturity are reported at fair value. All other investments are stated at cost or, for U.S. government securities, amortized cost. These securities may be purchased at a premium or discount which is amortized over the life of the investment. This valuation method approximates fair value. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Inventories in the Water, Sewer, and Fleet Service Funds are valued at the lower of cost (first-in, first-out) or market. Inventory amounts are recorded on the basis of a physical count. Cash and equivalents represent cash on hand, cash deposited in interest-bearing and noninterest-bearing checking accounts, and investments in money markets, certificates of deposit, and treasury obligations with maturities of three months or less at the date of acquisition, and cash deposited with the Illinois Funds. The City reports unearned revenues on its government funds statements. Unearned revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. If subsequent revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the combined balance sheet and the revenue is recognized. -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued H. Capital Assets Description Years Description Years Land improvements 10-100 Buildings and improvements 10-50 Leasehold improvements 10-100 Office equipment and furniture 5-15 Plant 20-100 Machinery and equipment 5-15 Transmission and distribution Infrastructure 30-100 system 5-100 Library collections 7 Sewer system and Intangible Assets 5-10 underground lines 75-100 Parking meters 15 I. Compensated Absences J. Long-Term Obligations Capital assets, which include property, plant, and equipment and infrastructure assets (e.g. roads, sidewalks, trails, bridges, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as equipment and vehicles with an initial, individual cost of more than $20,000, or infrastructure, buildings, or building improvements with an initial, individual cost of more than $100,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All payments due in the event of termination are accrued when incurred in the government-wide and proprietary fund financial statements. The General Fund has been used in prior years to liquidate the liability for compensated absences of governmental funds. In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Infrastructure acquired prior to the February 28, 2003 implementation of GASB 34 has been reported. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment are depreciated, and intangible assets are amortized using the straight-line method over the following estimated useful lives: -50- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued K. Self-Insurance L. Property Taxes The property tax calendar for Cook County is as follows: Description Date Lien Date January 1 of Levy Year Levy Date December of Levy Year First Installment Due Date (55% of prior bill)March 1 / April 1 of Year following Levy Year Second Installment Due Date (balance of total bill)September 1 / October 1 of Year following Levy Year The City is self-insured to certain limits for general liability claims and for workers' compensation insurance. A liability is recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claims adjustment expenses. General liability and workers' compensation claims are paid out of the Insurance Fund. Property taxes are collected by the Cook County Collector and are remitted periodically to all taxing bodies, including the City and Township. Distributions are made more often during the two main collection periods. Property taxes are levied on a calendar year basis by passage of a tax levy ordinance. Property tax revenues are recognized when they become both measurable and available. On this basis, property tax revenue includes all cash distributions of property tax received during the fiscal period between March 1,2011 and December 31,2011 and all property tax collections received within 60 days after the end of the fiscal period. A 2% allowance for loss is reflected in the City financial statements. -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued L. Property Taxes - Continued M. Fund Equity 1. Nonspendable - Includes fund balance amounts that can not be spent either because they are not in spendable form or because legal or contractual stipulations require them to be maintained intact. 2. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. 3. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action of the city. This formal action must occur prior to the end of the reporting period, but the amount of commitment, which will be subject to constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the city that originally created the commitment. 4. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that are not considered restricted or committed. Fund balance may be assigned through the following; 1) Council may take official action to assign amounts. 2) All remaining positive spendable amounts in governmental funds, other than the general fund, that are neither restricted nor committed. Assignments may take place after the end of the reporting period. 5. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceeds amounts restricted, committed, or assigned for those purposes. The adjustment necessary to convert GAAP basis property tax revenues to budgetary basis is shown in the notes to the required supplementary information in the section on Budgets and Budgetary Accounting. The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2010 property tax levy that will not be collected within 60 days of the Township's March 31, 2011 year-end. A 5% allowance for loss is reflected in the Township financial statements. Assignments may not create unassigned deficits in any fund. However, nonspendable, restricted, or committed fund balance may create an unassigned deficit. Also, restricted, committed, and assigned balances themselves may not be negative. The city considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the city would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. Governmental fund equity is classified as fund balance. In February 2009, the GASB issued statement No. 54 – Fund Balance Reporting and Governmental Fund Type Definitions. This statement establishes fund balance classifications based primarily on the extent to which the government is bound to honor constraints on the use of the resources reported in each governmental fund as well as establishes additional notes disclosures regarding fund balance classification policies and procedures. The City made the decision to implement this standard effective March 1,2011. In accordance with Governmental Accounting Standards Board Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions, the city classifies governmental fund balance as follows: -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued N. Interfund Transactions O. Use of Estimates P. Property Held for Resale Q. Effect of New Accounting Standards on Current Period Financial Statements R. Conduit Debt The City has issued $13,590,000 Series 2011 Revenue Bonds during the current fiscal period to provide financial assistance to Roycemore School, deemed to be in public interest. The use of proceeds includes the property purchase and renovation of the 1201 Davis, the new location of the school and payment of miscellaneous costs. The bonds are secured by the property or mortgages financed and are payable from the moneys, securities and other revenues pledged under the indenture by the School. The City is not obligated in any manner for the repayment of bonds. Accordingly, the bonds outstanding are not reported as a liability in these financial statements. As of December 31, 2011, outstanding bond balance was $13,590,000. The City had issued $5,000,000 Series 2010 Revenue Bonds during the fiscal year 2010-2011 to provide financial assistance to Chiravalle Montessori School, deemed to be in public interest. The use of proceeds includes the property purchase from City of Evanston, improvement to the existing building, refinancing existing debt and payment of miscellaneous costs. The bonds are secured by the property or mortgages financed and are payable from the moneys, securities and other revenues pledged under the indenture by the School. The City is not obligated in any manner for the repayment of bonds. Accordingly, the bonds outstanding are not reported as a liability in these financial statements. As of December 31, 2011, outstanding bond balance was $4,885,000. In the Governmental Funds the cost of property held for resale is reported as an asset with increases and decreases for purchases and sales. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Governmental Accounting Standards Board (GASB) has approved GASB Statement No. 61, The Financial Reporting Entity: Omnibus, and Statement No.62, Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements; Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position; and Statement No. 64, Derivative Instruments; Application of Hedge Accounting Termination Provisions - an amendment of GASB Statement No. 53. Application of these standards may restate portions of these financial statements. -53- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. General obligation bonds payable 122,579,206$ Bonds premium liability 3,608,584 Compensated absences payable 9,740,169 IMRF Pension contributions payable 2,720,075 Pension contributions payable 22,037,666 160,685,700$ B. 1. Capital outlay 12,513,244$ Depreciation expense (9,310,231) 3,203,013$ Net adjustments to reduce fund balance – total governmental funds to arrive at net assets – governmental activities Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government- wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance - total governmental funds and net assets – governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that “Long-term liabilities, including bonds payable, compensated absences payable, and pension contributions payable, are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this difference are as follows: Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities The government fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this difference are as follows: Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities -54- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 2. B. 2. Principal repayments: General obligation debt 9,742,334$ IMRF Pension contributions payable 2,523,327 Capital lease 363,759 12,629,420$ 3. Compensated absences 170,098$ Amortization income 720,230 Pension contributions (1,056,260) IMRF Pension contributions payable (4,019,532) (4,185,464)$ 4. Bond (15,210,000)$ Bond premium liability (210,176) (15,420,176)$ Another element of that reconciliation states that "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." The details of this difference are as follows: Another element of that reconciliation states that "Issuance of Bonds provides current financial resources to governmental funds." The details of this difference are as follows: Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities Net adjustment to decrease net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS – Continued Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities - Continued Another element of that reconciliation states that "The repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions, however, have no effect on net assets." The details of this difference are as follows: -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. 2. Public budget hearings are conducted. Taxpayer comments are received and noted. 3. The budget is legally enacted through passage of a resolution. 4. 5. Blended Component Unit The following City and Township funds do not have legally adopted budgets: Special Revenue Budgets are legally adopted on a basis consistent with GAAP except that property taxes are budgeted as revenue in the year they are levied. For purposes of preparing the General Fund - Budget and Actual (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balance, GAAP revenues and expenditures have been adjusted to the budgetary basis. The Township prepares its annual appropriation ordinance, which is synonymous with its budget, using the modified accrual basis of accounting. The appropriation ordinance was adopted June 28, 2010. It covers both Township funds. The Township follows procedures similar to those of the City in establishing the budgetary data reflected in the financial statements. The budget was not amended during the current fiscal period. Library Endowment and Employer Pension Contribution Funds. Because of the change in fiscal year to a calendar year, the City Manager will submit to the City Council a proposed operating budget for the upcoming fiscal year commencing January 1, 2013. The operating budget includes proposed expenditures and the means of financing them. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. There were budget allocations within General fund but the total did not change. -56- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued A. Budgetary Information - Continued Fund Actual Budget Excess General Obligation Debt $ 12,977,212 9,957,676$ $ 3,019,536 Howard Ridge Tax Increment District 27,552 - 27,552 Special Service District No. 4 388,000 378,000 10,000 B. DEFICIT FUND EQUITY The Southwest Tax Increment District had a net deficit of $114,083 as of December 31, 2011. The City plans to use current resources and possible debt proceeds to pay for future liabilities. The Solid Waste Fund had a net deficit of $1,571,711 as of December 31, 2011. The City plans to use current resources to pay for future liabilities. The Insurance Fund, an internal service fund, had a net deficit of $6,124,771 as of December 31, 2011. The City plans to use current resources to pay for future liabilities. The level of control (level at which expenditures may not exceed budget) is the fund.All unencumbered annual appropriations lapse at the end of the fiscal period. The following funds had an excess of actual budgetary expenditures over original and final budget for the ten months ended December 31, 2011: -57- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities B. Pooling of Cash and Investments Illinois statutes and the City's investment policies authorize the City to invest in obligations of the U.S. Treasury, in Government Sponsored Enterprises (GSE) such as Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), and Fannie Mae (FNMA); Bankers Acceptances as well as commercial paper rated only in the highest tier; Repurchase agreements of the highest grade; Collateralized Certificates of Deposit issued by FDIC insured financial institutions, money market mutual funds with portfolios limited to securities guaranteed by the United States, the Illinois Metropolitan Investment Fund (IMET), and the Illinois Funds. It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the following order: Safety of Principal, Liquidity, and Rate of Return. The City also seeks to maintain diversification of investments to avoid overconcentration of any one specific issuer or business sector. To mitigate interest rate risk, the City tries to structure the investment portfolio to meet daily cash flow needs so as to avoid needing to sell securities on the open market. The City seeks to attain market rates of return consistent with constraints imposed by safety and cash flow needs. The City invests to conform to all state and local statutes governing the investment of public funds. More detail is available in the City's investment policy. Library has investments in equities which is not permissible under the state statutes. The Firefighters' and Police Pension Funds are set up for the exclusive purpose of providing retirement and other benefits to plan participants and beneficiaries. All investments are governed and authorized by the respective Fire and Police Pension Boards. The investment objectives and parameters mirror those listed above for the City of Evanston. However, unlike the City's public funds, the Firefighters and Police Pension funds may invest in various equity accounts up to a limit of 45% of the aggregate value of each respective fund's assets. The pension funds invest to conform to all state and local statutes governing pension funds. Additional detail is available in each pension fund's investment policies. Except for cash and investments in certain restricted and special accounts, the City pools the cash of various funds to maximize interest earnings. Interest income is allocated to the various funds based upon their respective participation. -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments Investment Maturities (In Years) Fair Value Less Than 1 Year 1 - 10 More Years Equities 20,263,273$ 20,263,273$ -$ -$ 2,594,797 - - 2,594,797 Total Governmental and Enterprise Investment Fund $ 22,858,070 $ 20,263,273 $ - $ 2,594,797 8,321,513$ 11,502,540 439,220 $ 20,263,273 Investment Maturities (In Years) Fair Value Less Than 1 Year 1 - 10 More Years Equities 5,761,570$ 5,761,570$ -$ -$ 40,477,356 - 1,627,083 38,850,273 13,124,203 - 13,124,203 20,852,038 - 20,852,038 - 2,025,861 452,991 1,572,870 - 3,825,806 231,842 3,593,964 - 9,182,456 127,654 9,054,802 - 5,469,532 - 5,469,532 - 22,969,373 - - 22,969,373 $ 123,688,195 $ 6,574,057 $ 55,294,492 $ 61,819,646 868,477$ 2,228,644 300,587 2,363,862 $ 5,761,570 Schwab Money Market MB Bank Money Market Total Money Market / Liquid Assets Ginnie Mae Common Stock Total Fire and Police Investment Smith Barney Money Market JP Morgan Money Market Money Market / Liquid Assets Mutual Funds U.S. Treasuries Federal Home Loan Bank Federal Home Loan Mortgage Corp Fannie Mae Corporate Bonds Investment Type Total Money Market / Liquid Assets First Bank Money Market JP Morgan Money Market Vanguard Money Market Fire and Police Pension Investment Type Money Market / Liquid Assets Mutual Funds As of December 31, 2011, the City has the following investments and maturities. The fair value of the Illinois Funds is the same as the value of the pool shares. Governmental and Enterprise -59- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued C. Types of Investments - continued Illinois Funds City of Evanston 20,574,407$ Township 1,349,161 $ 21,923,568 IMET money market City of Evanston 5,745,952 Fire and Police pension plan 130,545 5,876,497 $ 27,800,065 Credit Risk.State law limits investments in commercial paper, corporate bonds, and mutual bonds funds to the top two ratings issued by nationally recognized statistical rating organizations. The City's investment policy does not impose further limits on investment choices. The Illinois Funds and Money Markets were rated AAA by Standard & Poor's. The Illinois Metropolitan Investment 1 - 3 Year Fund (IMET) exclusively invests in AAA Standard & Poor's securities, such as treasury and agency obligations. IMET's convenience fund collateralizes all of its deposits 110%. Illinois Funds and IMET are an investment pools managed by the State of Illinois, Office of the Treasurer, and a Board of Trustees, respectively which allows governments within the State to pool their funds for investment purposes. They are not registered with the SEC as an investment company, but do operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. The investments in the securities of the U.S. government agencies were all rated triple A or Aaa by the Standard & Poor’s and by Moody’s Investor’s Services. The following investments in Illinois Funds and IMET are valued at the fund’s share price, the price for which the investments could be sold. Interest Rate Risk.The City's investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The objective is to maintain a core portfolio with maturities primarily in the three month to three years range. Custodial Credit Risk.For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All of the City's investments were insured, registered, or held by the counterparty’s trust department in the City’s name. Concentration of Credit Risk.It is the policy of the City to diversify its investment portfolio.Investments shall be diversified to eliminate the risk of loss resulting from overconcentration in a security, maturity, issuer, or class of securities. At December 31, 2011, Police Pension Trust Fund had investments in FNMA that exceeded 10% of net assets available for benefits. Investments in FNMA are implicitly implied to be guaranteed by the U.S. government. The Firefighters' Pension Trust Fund had investments in GNMA that exceeded 10% of net assets available for benefits. Investments in GNMA are explicitly guaranteed by the U.S. government. -60- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued D. Deposits City Township Fiduciary E. Reconciliation of Unrestricted and Restricted Cash and Investments Unrestricted cash and equivalents 66,797,745$ Unrestricted investments 2,594,797 Restricted cash and equivalents and investments 5,992,417 Total Cash and Investments – Primary Government 75,384,959 Fiduciary funds cash and equivalents 6,784,662 Fiduciary funds investments 117,926,626 Total Cash and Investments 200,096,247$ Carrying amount of deposits – from Note 4 D 25,749,917$ Illinois funds and IMET money market - from Note 4 C 27,800,065 Investments – from Note 4 C table 146,546,265 Total 200,096,247$ The total of unrestricted cash and investments and restricted cash and investments from the Statement of Net Assets and for the fiduciary funds is reconciled to the preceding deposit and investment disclosures (Notes 4C and Notes 4D) as follows: Custodial Credit Risk.For a deposit, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its deposit or collateral securities that are in the possession of an outside party. All of the City's deposits were insured, collateralized, or filed by the counterparty's trust. Deposits consist of deposits in interest-bearing and noninterest-bearing checking accounts. At December 31,2011, the carrying amount of the City's deposits, including cash on hand of $26,244 was $24,692,711. The financial institutions' balances totaled $23,822,305. At March 31, 2011, the carrying amount of the Township's deposits was $164,658. The financial institutions' balances totaled $166,201. Deposits consist of deposits in interest-bearing and noninterest-bearing accounts. At December 31, 2011, the carrying amount of the Pension's deposits was $892,548. The financial institutions' balances totaled $861,376. -61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 5. RECEIVABLES A. Summary of Receivables Motor General Employer Vehicle Nonmajor General Obligation Pension Solid Parking and Other Fund Debt Contribution Water Sewer Waste System Funds Total Receivables: Property taxes 16,981,094$ 12,325,144$ 14,871,415$ -$ -$ -$ -$ 9,958,863$ 54,136,516$ Accounts - - - 1,531,383 2,259,654 490,331 - - 4,281,368 Notes - - - - - - - 6,194,245 6,194,245 Special assessments - - - - - - - 737,084 737,084 Accrued interest - - - - - - - 9,435 9,435 Other 2,253,299 - - - - - 54,922 840,758 3,148,979 Gross receivables 19,234,393 12,325,144 14,871,415 1,531,383 2,259,654 490,331 54,922 17,740,385 68,507,627 Less: allowance for uncollectibles (339,622) (246,503) (297,428) - - - - (289,177) (1,172,730) Net total receivables 18,894,771$ 12,078,641$ 14,573,987$ 1,531,383$ 2,259,654$ 490,331$ 54,922$ 17,451,208$ 67,334,897$ B. Notes Receivable – Special Revenue Funds Interest Loans Loan Rates Beginning Made Repayments Ending 0% - 8%6,002,308$ 338,287$ 236,350$ 6,104,245$ Receivables as of December 31, 2011 for the government’sindividual major funds, nonmajor, internal service funds and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: The City makes loans to City residents for the rehabilitation of single-family and multi-family housing. Initial funding for these loans was from Community Development Block Grant (CDBG) and Housing and Urban Development (HUD) Funds. Two types of loans are made: (1) title transfer loans which are due in full when the housing unit is sold, and (2) amortizing loans which are due in monthly installments over varying lengths of time. Repayments of principal and any interest earned on these receivables, which are recorded in the respective Special Revenue funds, are used to make additional rehabilitation loans. An allowance of $90,000 exists in the Special Revenue funds due to doubtful accounts. Loan activity for the current period is summarized as follows: Out of the total Notes Receivable, $6,124,245 is estimated not to be paid during the next year. Out of the total Special Assessment receivable, $587,000 is estimated not to be paid during the next year. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year less those collected within 60 days of year end are not earned and can not be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal period, the City's deferred revenue and unearned revenue consisted solely of property taxes levied for the subsequent years less those collected within 60 days of year end. -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 6. CAPITAL ASSETS A. Capital Asset Activity Capital asset activity for the ten months ended December 31, 2011, was as follows: Beginning Additions Deletions Transfers Ending Governmental activities: Capital assets, not being depreciated: Land 6,824,424$ -$ -$ -$ 6,824,424$ Right of way 18,695,896 - - - 18,695,896 Artwork 115,000 - - - 115,000 Construction in progress 1,930,312 - 1,930,312 - - Total capital assets, not being depreciated 27,565,632 - 1,930,312 - 25,635,320 Capital assets, being depreciated: Buildings and improvements 88,526,099 3,394,810 - - 91,920,909 Office equipment and furniture 5,695,214 296,405 - 77,182 6,068,801 Intangible assets 6,024,590 279,251 - 88,585 6,392,426 Machinery and equipment 22,551,124 2,143,333 1,052,373 (165,767) 23,476,317 Infrastructure 131,927,999 9,177,520 - - 141,105,519 Library collections 9,425,822 373,118 1,270,029 - 8,528,911 Capitalized leases 1,093,402 - 363,758 - 729,644 Total capital assets being depreciated 265,244,250 15,664,437 2,686,160 - 278,222,527 Less accumulated depreciation for: Buildings and improvements 32,610,942 1,635,491 - - 34,246,433 Office equipment and furniture 4,966,191 131,197 - 65,891 5,163,279 Intangible assets 5,246,705 110,282 - 84,602 5,441,589 Machinery and equipment 16,477,710 1,188,815 1,052,373 (150,493) 16,463,659 Infrastructure 61,036,834 4,554,150 - - 65,590,984 Library collections 7,259,530 509,015 1,270,029 - 6,498,516 Capitalized leases 817,203 41,242 143,607 - 714,838 Total accumulated depreciation 128,415,115 8,170,192 2,466,009 - 134,119,298 Total capital net assets being depreciated, net 136,829,135 7,494,245 220,151 - 144,103,229 Governmental activities capital assets, net 164,394,767$ 7,494,245$ 2,150,463$ -$ 169,738,549$ -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Beginning Additions Deletions Transfers Ending Business-type activities: Capital assets, not being depreciated: Land 3,297,937$ -$ -$ -$ 3,297,937$ Construction in progress 772,223 5,492,258 2,246,133 - 4,018,348 Artwork 359,752 - - - 359,752 Total capital assets, not being depreciated 4,429,912 5,492,258 2,246,133 - 7,676,037 Capital assets, being depreciated: Land improvements 3,563,393 70,106 - - 3,633,499 Buildings and improvements 73,606,657 2,799,199 - - 76,405,856 Leasehold improvements 302,752 - - - 302,752 Plant 36,093,067 83,500 175,602 - 36,000,965 Transmission and distribution system 39,295,556 2,162,633 18,702 - 41,439,487 Sewer system and underground lines 241,955,660 554,791 - - 242,510,451 Intangible assets 384,917 - - - 384,917 Equipment 2,804,603 - 5,310 - 2,799,293 Parking meters 707,688 - - - 707,688 Total capital assets being depreciated 398,714,293 5,670,229 199,614 - 404,184,908 Less accumulated depreciation for: Land improvements 1,116,055 97,335 - - 1,213,390 Buildings and improvements 13,504,769 1,530,599 - - 15,035,368 Leasehold improvements 302,752 - - - 302,752 Plant 12,991,054 653,939 77,048 - 13,567,945 Transmission and distribution system 7,223,863 377,137 4,019 - 7,596,981 Sewer system and underground lines 36,986,970 2,718,027 - - 39,704,997 Intangible assets 54,988 54,988 - - 109,976 Equipment 1,984,106 107,758 5,310 - 2,086,554 Parking meters 521,802 108,763 - - 630,565 Total accumulated depreciation 74,686,359 5,648,546 86,377 - 80,248,528 Total capital net assets being depreciated, net 324,027,934 21,683 113,237 - 323,936,380 Business-type activities capital assets, net 328,457,846$ 5,513,941$ 2,359,370$ -$ 331,612,417$ -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General management and support 299,722$ Public safety 496,683 Public works 5,130,363 Housign and Economic Development 2,784 Recreation and cultural opportunities 2,240,640 Total depreciation expense – governmental activities 8,170,192$ Business – type activities: Water 1,090,433$ Sewer 2,746,965 Motor Vehicle Parking 1,811,148 Total depreciation expense – business – type activities 5,648,546$ B. Construction Commitments Capital Improvement Fund 284,636$ Water Fund 2,970,791 Total Construction Commitments 3,255,427$ The value of construction contracts signed, where the work has not yet been performed at December 31, 2011, is as follows: -65- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 7. INTERFUNDS A. Interfund Accounts At December 31, 2011 interfund receivables and payables consist of the following: Due from Due to Funds Other Funds Other Funds Governmental Funds General Fund Emergency Telephone System 15,869$ -$ Economic Development 81,623 - Fleet Service 37,637 - Insurance - 115,706 Community Development Block Grant 49,855 - Capital Improvements - 275,760 Home Fund 3 - Affordable Housing - 10,000 Special Assessment CP Fund - 7,541 Motor Vehicle Parking System 72,655 - Water 129,634 - Sewer 57,827 - Solid Waste 360,724 - Neighborhood Stabilization Program 2 3,386 - Community Development Loan 1,216 - Firefighters Pension - 114,834 Police Pension - 142,949 Total General Fund 810,429 666,790 Capital Improvements General Fund 275,760 - Motor Vehicle Parking System 906,340 - Total Capital Improvements 1,182,100 - General Obligation Debt Service Fund West Evanston Tax Increment District - 300,000 Special Assessment CP Fund 31,766 - Total General Obligation Debt Service Fund 31,766 300,000 Employer Pension Contribution Firefighters Pension - 948,553 Police Pension - 1,156,132 Total Employer Pension Contribution - 2,104,685 Nonmajor Governmental Funds Affordable Housing General Fund 10,000 - Neighborhood Stabilization Program 2 General Fund - 3,386 Community Development Block Grant - 78 - 3,464 Economic Development General Fund - 81,623 Emergency Telephone System General Fund - 15,869 The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. -66- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Due from Due to Funds Other Funds Other Funds Nonmajor Governmental Funds - Continued Home Fund General Fund -$ 3$ Community Development Block Grant General Fund - 49,855 Neighborhood Stabilization Program 2 78 - Special Assessment CP Fund - 3,925 Total Community Development Block Grant 78 53,780 Community Development Loan General Fund - 1,216 Washington Natl. Tax Increment District Debt Svc. West Evanston Tax Increment District - 190,000 Howard Ridge Tax Increment District Southwest Tax Increment District 130,000 - Howard Hartrey Tax increment District Special Service District No. 4 100,000 - Special Service District No. 4 Howard Hartrey Tax Increment District - 100,000 Southwest Tax Increment District Howard Ridge Tax Increment District - 130,000 West Evanston Tax Increment District Washington Natl. Tax Increment District Debt Svc.190,000 - General Obligation Debt Service Fund 300,000 - 490,000 - Town General Assistance - 14,689 General Assistance Town 14,689 - Special Assessment CP Fund General Fund 7,541 - Community Development Block Grant 3,925 - Water 2,444 - Debt Service - 31,766 Total Special Assessment 13,910 31,766 Total Nonmajor Governmental Funds 758,677 622,410 Total Governmental Funds 2,782,972 3,693,885 -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Due from Due to Funds Other Funds Other Funds Enterprise Funds Water General Fund -$ 129,634$ Insurance - - Special Assessment CP Fund - 2,444 Total Water - 132,078 Sewer General Fund - 57,827 Motor Vehicle Parking System - 4,000,000 Solid Waste 1,151,945 - Total Sewer 1,151,945 4,057,827 Solid Waste General Fund - 360,724 Sewer - 1,151,945 Total Solid Waste - 1,512,669 Motor Vehicle Parking System General Fund - 72,655 Sewer 4,000,000 - Capital Improvements - 906,340 Total Motor Vehicle Parking System 4,000,000 978,995 Total Enterprise Funds 5,151,945 6,681,569 Internal Service Funds Fleet Services General Fund - 37,637 Insurance General Fund 115,706 - Total Internal Service Funds 115,706 37,637 Trust and Agency Funds Firefighters Pension Employer Pension Contribution 948,553 - General Fund 114,834 - Total Firefighters Pension 1,063,387 - Police Pension Employer Pension Contribution 1,156,132 - General Fund 142,949 - Total Police Pension 1,299,081 - Total Trust and Agency Funds 2,362,468 - Total Primary Government 10,413,091$ 10,413,091$ -68- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers At December 31, 2011 transfers in / out consist of the following: Transfers Transfers Funds In Out Governmental Funds General Fund Affordable Housing Fund 19,992$ -$ Washington Natl. Tax Increment District Debt Svc.325,000 - Howard Hartrey Tax Increment District 141,600 - Southwest Tax Increment District 24,100 - Capital Improvement Fund 300,000 - Water Fund 2,737,905 - Howard Ridge Tax Increment District 120,400 - Motor Fuel Tax Fund 697,492 - West Evanston Tax Increment District 50,000 - General Obligation Debt Service Fund - 676,980 Economic Development 377,256 - Total General Fund 4,793,745 676,980 Capital Improvements General Obligation Debt Service Fund - 2,130 General Fund - 300,000 Total Capital Improvement - 302,130 General Obligation Debt Service Fund General Fund 676,980 - Neighborhood Stabilization Program 2 1,910 - Emergency Telephone System 6,370 - Community Development Block Grant 4,090 - Economic Development 8,870 - Special Assessment 317,660 - Capital Improvement Fund 2,130 - Fleet Services 21,500 - Insurance 5,710 - Sewer - 8,099,352 Total General Obligation Debt Service Fund 1,045,220 8,099,352 Nonmajor Governmental Funds Affordable Housing Fund General Fund - 19,992 Community Development Block Grant General Obligation Debt Service Fund - 4,090 Economic Development General Obligation Debt Service Fund - 8,870 General Fund - 377,256 - 386,126 Transfers are used to 1) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due, 2) move restricted amounts from borrowings to the debt service fund to establish mandatory reserve accounts, 3) move restricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorization, including amounts provided as subsidies or matching funds for various grant programs. -69- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Transfers Transfers Funds In Out Nonmajor Governmental Funds - Continued Southwest Tax Increment District General Fund -$ 24,100$ Howard Hartrey Tax Increment District General Fund - 141,600 Howard Ridge Tax Increment District General Fund - 120,400 Washington Natl. Tax Increment District Debt Svc. General Fund - 325,000 Motor Vehicle Parking System - 3,419,636 Total Washington National Tax Increment District - 3,744,636 West Evanston Tax Increment District General Fund - 50,000 Emergency Telephone System General Obligation Debt Service Fund - 6,370 Special Assessment General Obligation Debt Service Fund - 317,660 Motor Fuel Tax General Fund - 697,492 Neighborhood Stabilization Program 2 General Obligation Debt Service Fund - 1,910 Total Nonmajor Governmental Funds - 5,514,376 Total Governmental Funds 5,838,965 14,592,838 Enterprise Funds Water Insurance - 390,254 General Fund - 2,737,905 - 3,128,159 Sewer General Obligation Debt Service Fund 8,099,352 - Motor Vehicle Parking System Washington Natl. Tax Increment District Debt Svc.3,419,636 - Total Enterprise Funds 11,518,988 3,128,159 Internal Service Funds Fleet Services General Obligation Debt Service Fund - 21,500 Insurance Water 390,254 - General Obligation Debt Service Fund - 5,710 390,254 5,710 Total Internal Service Funds 390,254 27,210 Total Primary Government 17,748,207$ 17,748,207$ -70- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 7. INTERFUNDS - Continued C. Capital Contributions Capital contributions were made from governmental activities to the business-type activities: Water Fund (21,349)$ Sewer Fund (37,100) Solid Waste (155,200) Motor Vehicle Parking System 2,750 (210,899)$ -71- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 8. Operating Leases Number of Monthly Annual lease Leasing Co.Expiration Machines Payment payment Type of Machines Chicago Office Technology Group 7/31/2014 9 1,642 16,420$ Copiers Secap Finance 12/31/2014 1 255 2,550 Postage Machine Minimum annual lease payments are as follows: Year ending 12/31/2012 22,764 Year ending 12/31/2013 22,764 Year ending 12/31/2014 14,554 60,082$ The City of Evanston has nine digital office copiers leased from Chicago Office Technology Group. The copiers are located in the Evanston Civic Center and the Evanston Police headquarter. The City entered into lease agreement for these copiers during the 2010-11 fiscal year. The lease term is 48 months starting August, 2010. The City has entered into lease agreement for postage machine during the 2009-10 fiscal year. The machine is located on the first floor in the Civic Center. The lease term is 60 months with the first payment made in January, 2010. -72- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9. LONG-TERM DEBT A. Changes in Long-Term Debt Final Interest Maturity Balance Balance Due Within Rate Date 3/1/2011 Issued Reclass Payments 12/31/2011 One Year G.O. Debt Governmental Activities Series 2002C 5.00%-5.80% 1/1/2022 2,680,000$ -$ -$ -$ 2,680,000$ 675,000$ Series 2002C (SSA#5)5.00%-5.80% 1/1/2016 1,840,000 - - - 1,840,000 325,000 Series 2003B 2.00%-5.25% 1/1/2023 2,780,000 - - 2,780,000 - - Series 2004 2.00%-5.00% 12/1/2023 11,855,000 - - 815,000 11,040,000 845,000 Series 2004B 2.00%-5.25% 12/1/2017 5,995,000 - - 1,535,000 4,460,000 1,630,000 Series 2005 3.25%-5.00% 12/1/2025 14,675,000 - - 545,000 14,130,000 750,000 Series 2006 3.85%-5.00% 12/1/2026 9,805,000 - - 125,000 9,680,000 130,000 Series 2006B 4.00%-4.25% 12/1/2023 14,430,000 - - - 14,430,000 - Series 2007 4.00%-5.00% 12/1/2016 18,685,000 - - 1,150,000 17,535,000 1,185,000 Series 2008A 3.00%-5.00% 12/1/2021 3,410,000 - - 195,000 3,215,000 195,000 Series 2008C 3.00%-5.00% 12/1/2028 9,274,140 - - 361,800 8,912,340 369,840 Series 2008D 3.25%-5.00% 12/1/2016 8,500,000 - - 1,415,000 7,085,000 1,435,000 Series 2010A 2.00%-3.625% 12/1/2029 6,500,000 - - 240,000 6,260,000 300,000 Series 2010B 1.00%-3.30% 12/1/2019 6,893,299 - (210,899) 580,534 6,101,866 613,946 Series 2011A - 15,210,000 - - 15,210,000 1,081,678 Subtotal Governmental Activity G.O. Debt 117,322,439 15,210,000 (210,899) 9,742,334 122,579,206 9,535,464 Capital lease 363,759 - - 363,759 - - Bonds premium liability 4,118,638 210,176 - 720,230 3,608,584 - OPEB liability 1,398,143 94,052 - - 1,492,195 - Pension contributions 20,981,406 10,789,712 - 9,733,452 22,037,666 - Compensated absences payable- City 10,022,198 2,958,553 - 3,085,581 9,895,170 3,759,175 IMRF Pension contributions 1,223,870 4,019,532 - 2,523,327 2,720,075 - Claims payable 5,455,203 2,920,373 - 920,030 7,455,546 2,106,361 Subtotal Other G.A. Liabilities 43,563,217 20,992,398 - 17,346,379 47,209,236 5,865,536 Total Governmental Activity Debt & Liabilities 160,885,656$ 36,202,398$ (210,899)$ 27,088,713$ 169,788,442$ 15,401,000$ G.O. Debt Business-type Activities Series 2005 Sherman Garage 3.25%-5.00%12/1/2025 8,855,000 - - 935,000 7,920,000 975,000 Series 2005 Sewer 3.25%-5.00%12/1/2025 250,000 - - - 250,000 - Series 2007 Sewer 4.00%-5.00%12/1/2016 3,155,000 - - 1,015,000 2,140,000 1,090,000 Series 2007 Parking 4.00%-5.00%12/1/2016 990,000 - - 115,000 875,000 125,000 Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 15,015,000 - - 1,310,000 13,705,000 1,800,000 Series 2008C Sewer 3.00%-5.00% 12/1/2028 2,260,860 - - 88,200 2,172,660 90,160 Series 2008D Sewer 3.25%-5.00% 12/1/2016 4,580,000 - - 1,760,000 2,820,000 1,875,000 Series 2010B 1.00%-3.30% 12/1/2019 1,106,701 - 210,899 114,466 1,203,134 121,055 Series 2011A - 4,030,000 - - 4,030,000 123,323 Subtotal Business Activity G.O. Debt 36,212,561 4,030,000 210,899 5,337,666 35,115,794 6,199,538 Water Revenue Bond Series 1999 4.125-4.375%1/1/2014 875,000 - - - 875,000 280,000 Water Revenue Bond Series 2002 2.00-3.75%1/1/2012 295,000 - - - 295,000 295,000 Subtotal Water Revenue Bonds 1,170,000 - - - 1,170,000 575,000 IEPA Loans 2.535-3.59%Various 87,059,150 158,893 - 8,136,771 79,081,272 8,705,902 Unamortized bond Premium and discount 12,418 - - 941 11,477 - Bonds premium liability 880,539 45,283 - 133,143 792,679 - Compensated absences payable- City 684,019 185,615 - - 869,634 415,163 IMRF Pension contributions 233,118 791,972 - 497,174 527,916 - OPEB Liability 132,899 41,638 - - 174,537 - Subtotal Other Business Activity Liabilities 1,942,993 1,064,508 - 631,258 2,376,243 415,163 Total Business Debt & Liabilities 126,384,704$ 5,253,401$ 210,899$ 14,105,695$ 117,743,309$ 15,895,603$ Total Governmental & Business Debt & Liabilities 287,270,360$ 41,455,799$ -$ 41,194,408$ 287,531,751$ 31,296,603$ Note: Employer Pension Contribution Fund has been used to liquidate the net pension obligation. Sewer Fund, Water Fund, Solid Waste, Parking Fund and General Fund have been used to liquidate IMRF Pension liability. General Fund, Fleet Fund, Water Fund, Parking Fund, Solid Waste Fund and Sewer Funds have been used to liquidate other post employment benefit obligations. -73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9- LONG-TERM DEBT - Continued A. Changes in Long-term Debt- Continued Business type activities - Water Revenue Bonds Revenue debt payable consists of the following: Date of Final Interest Original Issue Maturity Rates Indebtedness Balance 1/25/1999 1/1/2014 Various 3,500,000$ 875,000$ 10/1/2002 1/1/2012 Various 2,355,000 295,000 Total Business type Activities- Water Revenue Bonds 1,170,000$ Business type activities - IEPA Loans IEPA loans payable consist of the following: Date of Final Interest Original Issue Maturity Rates Indebtedness Balance Various Various Various 161,827,471$ 79,081,272$ Total Business type Activities- IEPA Loan Debt 79,081,272$ Business type activities revenue bonds are payable from revenues derived from Water service fees. The City has pledged future revenues, net of operating expenses, to repay original principal totaling $5,855,000 in revenue bonds issued in 1999 and 2002. Proceeds from the bonds provided financing for Water CIP projects. The bonds are payable solely from revenues through 2014. Annual interest payment on the bonds is expected to require $24,672 of net revenues for the ten months ended December 31, 2011. The total principal and interest remaining to be paid on the bonds is $1,234,047. Principal and interest paid for the current period totaled $24,672 on customer revenues of $5,131,448. Business type activities IEPA loans are payable from revenues derived from Sewer and Water service fees. The City has pledged future revenues, net of operating expenses, to repay principal totaling $161,827,471 in IEPA loans issued in 1993 through 2011. Proceeds from the loans provided financing for the Long Term Sewer and Water Improvement Program. The IEPA loans are payable solely from revenues and are payable through 2030. Annual principal and interest on the loans are expected to require $10,731,083 of net revenues for the Fiscal year 2012. The total principal and interest remaining to be paid on the loans is $91,158,220. Principal and interest paid for the current period and total customer net revenues were $10,269,372 and $9,402,942 respectively. -74- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9- LONG-TERM DEBT - Continued B. General Obligation Bonds Payable Year Ending Governmental Activities Business-type Activities December 31 Principal Interest Principal Interest 2012 9,535,464$ 5,152,945$ 6,199,538$ 1,632,121$ 2013 10,099,093 4,720,259 4,455,906 1,291,281 2014 11,143,358 4,368,658 3,496,643 1,045,744 2015 8,729,385 3,943,155 3,985,615 902,122 2016 9,169,204 3,551,334 4,085,796 738,906 2017-2021 39,026,338 12,536,219 9,458,663 1,436,478 2022-2026 26,784,615 5,010,411 1,800,386 601,666 2027-2031 8,091,749 829,655 1,633,247 200,416 Total 122,579,206$ 40,112,636$ 35,115,794$ 7,848,734$ On August 16, 2010 the City issued taxable Series 2010B in General Obligation bonds for a total of $8,000,000 to pay the City's obligation to the Illinois Municipal Retirement Fund (IMRF) for the Early Retirement Incentive (ERI) plan adopted by the City. The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds. On August 16, 2010 the City issued Series 2010A in General Obligation bonds for a total of $6,500,000 to pay for public improvements within the City. Part of the above Series 2011A General Obligation bonds were issued at a net interest cost of 1.0560% to current refund the outstanding balance of Series 2003B. This will result in a net cash savings of $123,441 which translates to a net present value savings of $120,761. On August 1, 2011 the City issued Series 2011A in General Obligation bonds for a total of $19,240,000. The Bonds were issued to provide financing for certain public improvement projects and refund certain outstanding obligations. The Bond issue also included money to deposit into debt service funds of the City's Sewerage System for purposes of paying certain outstanding obligations on their scheduled payment dates. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. -75- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9- LONG-TERM DEBT - Continued C. Special Service District Bonds Payable For the Fiscal Year ending Principal Interest 2012 325,000$ 98,231$ 2013 340,000 78,816 2014 380,000 57,740 2015 390,000 35,175 2016 405,000 11,873 Total 1,840,000$ 281,835$ D. Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follows: For the Fiscal Year ending Principal Interest 2012 575,000$ 37,688$ 2013 290,000 19,688 2014 305,000 6,672 Total 1,170,000$ 64,048$ Business-type Activities The City also issued revenue bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. The bonds were issued to finance construction projects related to the water treatment plant. The City also issued debt in the Special Service District No. 5 fund to provide funds for the principal and interest payments on unlimited ad valorem tax bonds issued for this special taxing district. Special Service District bond is included within the total of General Obligation Bonds. Annual debt service requirements to maturity for special service district bonds are as follows: Governmental Activities -76- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9- LONG-TERM DEBT - Continued E. Notes Payable -IEPA Loans Notes payable – IEPA debt service requirements to maturity are as follows: For the Fiscal Year ending Principal Interest 2012 8,705,902$ 2,025,181$ 2013 8,264,766 1,777,092 2014 7,814,770 1,555,528 2015 7,557,928 1,341,861 2016 7,036,186 1,144,637 2017-2021 26,155,923 3,322,674 2022-2026 11,927,280 880,592 2027-2031 1,618,517 29,384 Total 79,081,272$ 12,076,949$ F. Prior Years' General Obligation Bond Defeasances Original Outstanding Amount Amount G.O. Series Defeased Defeased 2002C 6,480,000$ 6,480,000$ Series Amounts 2002C 2,680,000$ Business-type Activities During the ten months ended December 31, 2011, the City currently has 27 outstanding loans from the IEPA. The City will repay the loans solely from revenues derived from the sewer and water system; the loans do not constitute a full faith and credit obligation of the City. They will be repaid with equal installments consisting of principal plus simple interest, on unpaid principal balances, over a period of 20 years. Initial principal balances will consist of disbursements and interest accrued during construction. Repayments begin not later than six months after completion of construction. The outstanding balances of Series 2002C not defeased at December 31,2011, are recorded as a liability in the City’s financial statements. Those balances are as follows: In 2006, the City defeased a portion of Series 2002C Corporate Purpose bonds, by placing a portion of the proceeds of Series 2006B in an irrevocable Escrow Account. The trust account assets and the liabilities for the defeased bonds are not included in the City’s financial statements. At December 31, 2011, the following remaining outstanding balances are considered defeased: -77- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9- LONG-TERM DEBT - Continued G. Post Employment Benefits other than Pensions (Defined Benefit Plan) Annual required contribution 931,051$ Interest on net OPEB obligation 57,414 Adjustment to annual required contribution (48,723) Annual OPEB cost 939,742 Contributions made (804,052) Increase in net OPEB obligation 135,690 Net OPEB obligation - Beginning 1,531,042 Net OPEB obligation - Ending 1,666,732$ Percentage of Fiscal Period Annual OPEB Annual OPEB Net OPEB Ended Cost Cost Contributed Liability 2/28/2010 1,041,981$ 56.75% 1,133,965$ 2/28/2011 1,055,264 62.37% 1,531,042 12/31/2011 939,742 85.56% 1,666,732 The following table shows the components of the City of Evanston's annual OPEB cost for the the ten months ended December 31,2011, the amount actually contributed to the plan and changes in the City's net OPEB obligation to the retiree health plan. The City of Evanston's group health insurance plan provides coverage to active employees and retirees (or other qualified terminated employees) at blended premium rates. This results in an other post employment benefit (OPEB) for the retirees, commonly referred to as an implicit rate subsidy. The group health insurance plan does not issue a publicly available financial report. The City of Evanston's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2011 were as follows. Contribution requirements are established through Illinois State laws. The City of Evanston implicitly contributes the difference between retiree's contributions and unblended rates. Retirees pay 100%of the blended premiums to cover themselves and their covered dependents ranging from $490 for single coverage to $1,796 for family coverage. The city pays 100% of health care premiums for Police officers and Firefighters, their dependents and their surviving spouses and dependent children if they were injured or killed in the line of duty during an emergency, ranging from $490 for single coverage to $1,796 for family coverage. For the ten months ended December 31, 2011, the City's estimated contribution to the plan is $804,052. The City of Evanston's annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement No.45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. -78- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 9- LONG-TERM DEBT - Continued G. Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued Actuarial accrued liability (AAL)16,994,544$ Actuarial value of plan assets - Unfunded Actuarial Accrued Liability (UAAL)16,994,544$ Funded ratio (actuarial value of plan assets/AAL)- Covered payroll (active plan members)48,101,372 UAAL as a percentage of covered payroll 35.33% In the actuarial valuation as of December 31 2011, the entry age normal cost method was used. The actuarial assumptions include a 4.50 percent investment rate of return and an annual healthcare cost trend date of 8.50 percent initially, reduced by decrements to an ultimate rate of 4.50 percent in the year 2020. Both rates include a 3 percent price inflation assumption. The actuarial value of retiree health plan assets was determined using techniques that spread the effects of short term volatility in the market value of investments over a three year period. Retiree health plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period at December 31, 2011, was 30 years. The funded status of the plan based on the projected valuation results as of December 31st, 2011, was as follows: Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care trend. Amounts determined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of calculations. -79- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 10. FUND EQUITY A. Restrictions of Net Assets - Water Fund B. Restricted Net Assets - Fiduciary Funds Fiduciary Funds Firefighters' Pension Fund Restriction for employee pension benefits 54,893,621$ Police Pension Fund Restriction for employee pension benefits 72,596,264 Total Fiduciary Funds 127,489,885$ Surplus Revenue Account - All revenues remaining after all other credits in the Water Fund have been made shall be credited to this account and be used for: making up any deficiency necessary to credit prior accounts with the required amounts; paying principal of, or interest on, any junior lien bonds; transfer to any other account of the fund; and any lawful corporate purpose, at the discretion of the City Council. The ordinances authorizing the issuance of the Water revenue bonds provided for the creation of separate reserve accounts designated as “Bond and Interest Account”, “Bond Reserve Account”, “Depreciation, Improvement, and Extension Account”, and “Surplus Revenue Account”. Descriptions of each follow: Bond Reserve Account - The account shall accumulate $145,800 per year until all bonds have been paid or provision has been made for their payment. The funds shall be retained and used only for payment of Water Revenue bonds at any time when there are insufficient funds available in the Bond and Interest Account. Whenever the balance in the account is equal to the maximum principal and interest requirements on all outstanding bonds for any succeeding fiscal year, the surplus over and above may, in the discretion of the City Council, be transferred to any other account within the Water Fund of the City. Depreciation, Improvement, and Extension Account - The account shall accumulate $5,100 per month or a greater amount as may be designated by the City Council. The monies shall be used first to provide an adequate allowance for depreciation, and may be used to pay for any extraordinary maintenance, repairs, and necessary replacements for improvement or extension of the system. The funds may be used at any time to pay principal of, or interest upon, any outstanding bonds payable whenever there are no other funds available. If the money on deposit is greater than $400,000, the excess can be transferred to any other account within the Water Fund. All proceeds received from the disposition of any property shall be credited to this account. Bond and Interest Account - All amounts required to be set aside for the purpose of paying principal and interest of outstanding Water Revenue bonds shall be set aside monthly as directed. In addition, there shall be credited monthly an amount at least equal to the sum of one-fifth of the interest becoming due on the next interest payment date and one-tenth of the aggregate yearly amount of principal due on the next principal maturity date. -80- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 10. FUND EQUITY - Continued C. Assigned Fund Balances The following are the assigned fund balances: General Fund Assigned for Arts Council 24,797$ Assigned for private elm trees 114,388 Assigned for Dutch elm inoculation 157,216 Assigned for Butterfield sculpture 30,883 Assigned for scholarship contributions 25,953 Assigned for recreation group activities 207,123 Assigned for public library acquisitions 462,686 Assigned for youth initiative 42,151 Assigned for parks and recreation 253,932 Assigned for Chiaravelle escrow 207,402 Assigned for Mayor's programs 87,279 Assigned for IMRF - Pension 2,590,000 Assigned for Compensated Absences 2,576,360 Assigned for Property tax - Library 526,938 Other asssignments 283,124 7,590,232$ Capital Improvement Fund Assigned for capital projects 5,746,660$ Non-major Governmental Funds Assigned for economic development 1,382,034$ Assigned for special assessment capital project 2,944,889 4,326,923$ Total Assigned Fund Balances 17,663,815$ -81- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 11. INDIVIDUAL FUND ACTIVITIES A. General Obligation Debt Service Fund B. Water Fund C. Special Service District No. 4 The City usually adopts several resolutions abating portions of the property tax debt service levies. The amount of property taxes abated is derived from principal and interest payments by private assessments on street paving projects; additional sewer service fees related to the citywide sewer improvement project; tax increment revenues in the Southwest, Washington National, and Howard Hartrey Tax Increment Districts; revenues from the Motor Vehicle Parking System Fund associated with the Maple Garage, Sherman Garage and Church Street Self-Park garage; and General Obligation Debt Service Fund interest income. On January 28, 1997, the City executed a long-term water supply contract with the Village of Skokie, Illinois, to replace an expiring contract. The contract took effect on March 1, 1997 and continues in effect for a period of twenty years until February 28, 2017. The contract is renewable at ten-year intervals thereafter. Under the terms of the contract, Evanston is to supply Skokie sufficient potable Lake Michigan water to satisfy the maximum 24-hour demand for Lake Michigan water of the Village of Skokie system. The City also provides potable Lake Michigan water to the Northwest Water Commission (NWWC) under a long- term water supply contract. Sale of potable water under this contract began on February 28, 1985 and continues until February 28, 2030. Under the terms of the current contract, Evanston is to supply the NWWC sufficient potable Lake Michigan water to satisfy the Commission’s maximum 24-hour demands for Lake Michigan water for resale to the Commission’s customers. On August 13,2007, the City Council adopted Ordinance No. 37-R-07 which extended the life of Special Service District No. 4 until December 31, 2019. Special Service District No. 4 comprises the central business district of the City. The special district was established for the purpose of providing funds for special maintenance and repair and for promotion and advertisement. The annual property tax levy for 2010 was $406,122 which includes a loss & cost amount of $8,122. The ordinance also authorized the City to enter into an agreement with DOWNTOWN EVANSTON, an Illinois not- for-profit corporation to plan, implement, and manage the district. -82- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 12. RISK MANAGEMENT - CLAIMS AND JUDGMENTS The changes in the balances of claims liabilities during the past two fiscal periods are as follows: Workers’ General Compensation Liability Total February 28, 2010 4,542,080$ 631,288$ 5,173,368 New claims and/or estimate revisions 442,956 1,258,725 1,701,681 Claims payments (1,283,558) (136,288) (1,419,846) February 28, 2011 3,701,478 1,753,725 5,455,203 New claims and/or estimate revisions 225,374 2,694,999 2,920,373 Claims payments (705,471) (214,559) (920,030) December 31, 2011 3,221,381$ 4,234,165$ 7,455,546$ Workers' compensation and general liability risks are accounted for in the Insurance Fund. The fund was established on March 1, 1994 to administer general liability claims and workers' compensation programs on a cost- reimbursement basis. The fund accounts for the aforementioned liabilities of the City, but does not constitute a transfer of risk from the City. The City records estimated liabilities for workers' compensation and for general claims. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claim adjustment expenses. The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to the City's employees. The City maintains commercial all-risk property insurance to cover damage to City facilities and contents and other losses including business interruption and loss of rents. The coverage is subject to a deductible of $50,000 for each loss and each location. The City also maintains crime and fidelity insurance coverage with a $25,000 deductible to a limit of $2,000,000. In addition, coverage is maintained for ambulance/paramedic liability and dental malpractice. For workers' compensation, specific excess coverage in excess of $500,000 per occurrence (except $600,000 for Police, Fire and EMT) is purchased from a commercial insurance company. For general liability claims, the City retains risk of loss. -83- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 13. CONTINGENCIES NOTE 14. JOINT VENTURES A. Solid Waste Agency of Northern Cook County On March 28, 1988, the Evanston City Council authorized agreements providing for the City's participation in the Solid Waste Agency of Northern Cook County (Agency) and in the interim financing of that Agency. The Agency was planned and developed by the Northwest Municipal Conference, of which the City is a member. The agency is empowered to plan, finance, construct, and operate a solid waste disposal system. The authority to designate management, influence operations, and formulate budgets rests with the Board of Directors and Executive Committee. No one member has the ability to significantly influence operations; therefore, the Agency is not a component unit of any other governmental reporting entity. The Agency is a municipal joint action agency created as of May 2, 1988 under the provisions of the Intergovernmental Cooperation Act, 5 ILCS 220/3.2. The Agency consists of twenty-three municipalities. The Agency is governed by a Board of Directors consisting of one official selected by each member community who serves a two-year term. Each director has one vote. The Board of Directors determines the general policies of the Agency. The Executive Committee of the Agency consists of seven persons elected by the Board of Directors. Each person is entitled to one vote. The Executive Committee may take action not specifically reserved to the Board of Directors by the Act, the Agency agreement, or the bylaws. There are various claims and legal actions pending against the City for which provision has been made in the financial statements. At the present time, the City believes that the reserves established are sufficient so that the expected liability for these claims and legal actions will not materially exceed the amounts recorded in the financial statements. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of the expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. -84- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 14. JOINT VENTURES – Continued A. Solid Waste Agency of Northern Cook County - Continued Summary of Financial Position as of April 30, 2011: Current assets 6,843,409$ Property, plant, and equipment 11,228,739 Debt issuance costs, net and other assets 66,091 Total assets 18,138,239$ Current liabilities 5,164,235$ Long-term debt, net of unamortized discount 4,788,844 Invested in capital assets, net of related debt 5,319,895 Restricted net assets 2,371,951 Unrestricted net assets 493,314 Total liabilities and fund equity 18,138,239$ Summary of Revenues and Expenses for the Year Ended April 30, 2011: Total revenues 14,270,755$ Total expenses (14,183,633) Net income 87,122$ Complete financial statements for the agency can be obtained at 2700 Patriot Blvd., Glenview, IL 60026. Under the 1992 project use agreement executed by the City with the Agency, the City’s share of project costs, including debt service and disposal, is based on its share of deliveries to the Wheeling Transfer station for each year. The City does not control the Agency's fiscal management or operations nor is the City legally responsible for any more than its share of the Agency's debt or operating deficits, if any. -85- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 14. JOINT VENTURES – Continued B. Evanston Housing Corporation Statement of Financial Position as of December 31, 2010: Cash and cash equivalents 896,163$ Mortgage loans receivable 2,330,841 Total assets 3,227,004 Payables and accrued expenses 163,004 Notes payable 3,064,000 Total liabilities 3,227,004 Net Assets -$ (Note: December 31, 2010 is the most current information available.) The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2010 are summarized as follows: The City of Evanston has advanced $639,000 to the corporation under the notes due on or before November 30, 2034. The notes bear no interest. However, the City is entitled to a certain net sales consideration upon the sale or exchange of the mortgaged property, as well as a prorated portion of the investment income earned on the funds not loaned to mortgagees. The Corporation is governed by a Board of Directors of ten people, four of whom are selected by the City. The Board has the authority to approve the annual budget and to arrange for the management of the affairs of the Corporation. The City has no governing authority to influence actions of the Corporation. The City is not liable for payment of any debts of the Corporation. The financial institutions' funds are advanced under Non-Recourse Collateral Trust Notes. The notes are payable on or before November 30, 2029. Interest accrues based on interest earned from the mortgage notes receivable and investments, less expenses. Interest is paid semiannually to the holders on a pro-rata basis based on the amount of each note held to the total outstanding notes. The City agreed to jointly participate with various lending institutions in a not-for-profit housing mortgage corporation by approval of the City Council on May 22, 1989. The purpose of the corporation is to lend mortgage funds to qualified, income eligible, first-time homebuyers in the City of Evanston. -86- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 14. JOINT VENTURES – Continued B. Evanston Housing Corporation - Continued Statement of Activities for the Year Ended December 31, 2010: Total revenues 125,449$ Total operating expenses (125,449) Excess of revenues over expenses -$ (Note: December 31, 2010 is the most current information available.) NOTE 15. DEFERRED COMPENSATION PLAN Plan balance at December 31, 2011 37,249,261$ The assets of the plan are held in Trust (ICMA Retirement Corporation Deferred Compensation Plan and Trust), with the City serving as trustee, for the exclusive benefit of the plan participants and their beneficiaries. The assets cannot be diverted to any other purpose. The City's beneficial ownership of plan assets held in the ICMA Retirement Trust is held for the further exclusive benefit of the plan participants and their beneficiaries. The City of Evanston offers its elected officials and employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is administered by the ICMA Retirement Corporation. The plan, available to all City employees, permits them to defer a portion of their current salary to all future years. The deferred compensation is not available to the participants until termination, retirement, death, or an unforeseeable emergency occurs. The City provides the Corporation with office space and staff support on a cost reimbursement basis. Complete financial statements for the Corporation can be obtained in the City's Community Development Department from the Assistant Director, Housing Rehabilitation and Property Standards. The City and its agent have no liability for losses under the plan, but do have the duty of care that would be required of an ordinary prudent investor. -87- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund A. Plan Description In 2010, the Illinois Legislature passed Senate Bill 1946. The Bill modifies benefits for most Illinois public pension systems, including IMRF's regular plans. The provisions of the bill became effective January 1, 2011. The bill created a second tier for the employees starting on or after January 1, 2011. As a part of this bill, the vesting time for the second tier employees has been increased from eight to ten years. The bill also increased the age to receive full retirement benefits to 67 and reduced retirement benefit to age 62 from the current age of 60 and 55 respectively for each type of benefit. The final rate of earnings used to calculate a pension is also capped at $106,800 as a part of pension reforms. The Employer Pension Contribution Fund is a special revenue fund and uses the modified accrual basis of accounting. The tax revenues are recognized when measurable and available. The expenditures are recorded when the liability is incurred. The City created a special revenue fund, the Employer Pension Contribution Fund, to accommodate the Police and Fire pension accounting requirements. This fund recognizes the appropriate tax revenues for the City on behalf of the Pension Trust Funds and contributes those amounts into the Pension Trust Funds as the employer contribution. Employees participating in IMRF are required to contribute 4.50% of their annual covered salary. The member rate is established by state statute. The City and Township are required to contribute at an actuarially determined rate. The City’s rate as of December 2010 was 9.36% of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. The City maintains two separate single-employer retirement plans established by state statute for the City’s police officers and firefighters. The City also participates in the Illinois Municipal Retirement Fund (IMRF), a statewide multiple-employer public employee retirement system which acts as investment and administrative agent. The IMRF plan covers substantially all of the City’s employees other than police officers and firefighters. The City and Township’s defined benefit pension plan, IMRF, provides retirement, disability, annual cost of living adjustments, and death benefits to plan members and beneficiaries. IMRF is an agent multiple employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523, or by accessing their website at www.imrf.org/pubs/pubs_homepage.htm. -88- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund - Continued B. Funding Status and Progress C. Annual Pension Cost Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/11 4,811,504$ 63%3,247,991$ 12/31/10 4,914,570 70%1,456,988 12/31/09 2,702,269 100%- As of December 31, 2011, the most recent actuarial valuation date, the City's Regular plan was 75.54% funded. The City's actuarial accrued liability for benefits was $86,311,655 and the actuarial value of assets was $65,199,440 resulting in an underfunded actuarial accrued liability (UAAL) of $21,112,215. The covered payroll for the ten months ended December 31, 2011 (annual payroll of active employees covered by the plan) was $32,270,312 and the ratio of the UAAL to the covered payroll was 65%. As of December 31, 2010, the most recent valuation date, the Township's Regular plan was fully funded. The Township's actuarial accrued liability for benefits was $305,956 and the actuarial value of assets was $331,048 resulting in an overfunding of $25,092. The covered payroll for calendar year 2010 (annual payroll of active employees covered by the plan) was $334,330. The schedule of funding progress for the postemployment defined benefit plan immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits over time. Three-Year Trend Information for IMRF - City For December 31, 2011, the employer's actual contributions for pension cost were $3,020,501. Actual required contributions for calendar year 2011 was $4,811,504. The required contribution was determined as part of the December 31, 2009 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.5% investment rate of return (net of administrative expenses), (b) projected salary increases of 4% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year, depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3% annually. The actuarial value of IMRF assets was determined using techniques that smooth the effects of short- term volatility in the market value of investments over a five-year period with a 20% corridor. The City’s gross total payroll for the calendar ten months ended December 31, 2011 was $51,483,448. Of this amount, $32,270,312 in payroll earnings were reported to and covered by the IMRF system. The Township’s total payroll for the year ended December 31, 2010 was $334,330 which were reported to and covered by the IMRF plan. -89- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund - Continued C. Annual Pension Cost - Continued Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/10 23,203$ 100%-$ 12/31/09 12,053 100%- 12/31/08 13,371 100%- Police and Firefighters' Pension Plans D. Plan Descriptions Three-Year Trend Information for IMRF - Township The Police Pension Plan and Firefighters' Pension Plan are contributory, defined benefit public employee retirement plans administered by the City and a Board of Trustees for each Fund. All sworn City police officers and firefighters are participants in the plans. The plans do not issue stand-alone financial reports and they are not included in the report of a public employee retirement system or another entity. The City's payroll for police and firefighter employees covered by the plans for the ten months ended December 31, 2011 was $11,502,613 and $7,736,550 respectively. For December 31, 2010, the Township’s annual pension cost of $23,203 was equal to the Township’s required and actual contributions. The required contribution was determined as part of the December 31, 2008 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.5% investment rate of return (net of administrative expenses), (b) projected salary increases of 4% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3% annually. The actuarial value of IMRF assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor. The actuarial assumptions used to determine the actuarial accrued liability for 2010 are based on the 2007-2009 experience study. The schedule of funding progress for the postemployment defined benefit plan immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits over time. -90- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS – Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions - Continued Participation in the plans at December 31, 2011 was: Police Firefighters' Retirees, disabled participants, and beneficiaries of 167 138 deceased retirees currently receiving benefits Active plan members 158 104 Total 325 242 Police Firefighters' Pension Fund Pension Fund Actuarial assumptions: Investment rate of return 7.00% 7.00% Projected salary increases 4.00% 4.00% Attributable to inflation 2.50% 2.50% Cost of Living Increases 3.00% 3.00% Any police officer or firefighter who has creditable service of 20 years or more, has reached age 50, and is no longer in the service, is entitled to a yearly pension equal to 50% of the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater, in the case of a police officer, and at the date of retirement in the case of a firefighter. The police officer pension is increased by 2.5% of such salary for each additional year of service over 20 years to a maximum limit of 75% of such salary. The firefighter pension is increased by 1/12 of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75% of such monthly salary. -91- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions – Continued E. Summary of Significant Accounting Policies Basis of Accounting Method Used to Value Investments A police officer or firefighter who retires or is separated from service after accumulating at least eight years for a police officer and ten years for a firefighter, but less than 20 years of creditable service, will receive a monthly pension after attaining the age of 60 based on the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater, in the case of a police officer and at the date of retirement or separation in the case of a firefighter. The amount of the benefit is a tabular percentage of such salary ranging from 15% for 10 years of service to 50% for 20 years of service. These benefit provisions and all other requirements are established by state statute. The Police and Firefighters' Pension Fund financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized when due. Employer contributions to each plan are recognized when due, pursuant to formal commitment as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Administrative cost for Police and Firefighters are financed by investment income. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value. In 2010, the Illinois Legislature passed Senate Bill 1946. This bill modifies benefits for most Illinois public pension systems, including Police and Fire Pension plans. The provisions of the bill became effective January 1, 2011. The bill created a second tier for the employees starting on or after January 1, 2011. As a part of the bill, the vesting time for the second tier police employees has been increased from eight to ten years. The bill also increased the retirement age from 50 to 55. Accordingly, a police officer or firefighter from the second tier who retires or is separated from service after accumulating at least ten years for a police officer or a firefighter, but less than 20 years of creditable service, will receive a monthly pension after attaining the age of 60 based on the salary attached to the rank held on the last day of service or for one year prior to the last day, whichever is greater, in the case of a police officer and at the date of retirement or separation in the case of a firefighter. The amount of the benefit is a tabular percentage of such salary ranging from 15% for 10 years of service to 50% for 20 years of service. These benefit provisions and all other requirements are established by state statute. -92- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued F. Contributions and Reserves Police Firefighters' Annual required contribution 6,232,478$ 4,468,888$ Interest on net pension obligation 876,109 592,589 Adjustment to annual required contribution (824,950) (555,402) Annual pension cost 6,283,637 4,506,075 Contributions made (5,366,299) (4,367,153) Increase (decrease) in net pension obligation 917,338 138,922 Net pension obligation at March 1, 2011 12,515,848 8,465,557 Net pension obligation at December 31, 2011 13,433,186$ 8,604,479$ Employee contribution rates are established by statute at 9.91% of a police officer’s salary and 9.46% of a firefighter’s salary. Accumulated employee contributions for tier one employees are refunded if an employee leaves covered employment or dies before 8 years of credited service in the case of police officers and 10 years in the case of firefighters. But, in case of tier two employees who have started participating in the pension plans on or after January 1, 2011, contributions will be refunded if an employees leaves covered employment or dies before 10 years of credited service. The City’s annual pension cost and net pension obligation to the Police and Firefighters' pension funds were obtained from the funds' most recent actuarial valuations as of December 31, 2011 are as follows: The difference between the total amount funded and the amount to be funded, as actuarially determined, is recorded as the net pension obligation in the general long-term debt schedule. The total pension liability calculated as the net pension liability dates forward from fiscal year 1987-88. For employer contributions, the City’s budget policy is to fund pension plans at the funding level recommended annually by the actuary. The General Fund is used to liquidate the net pension obligation. -93- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued G. Concentration of Investments H. Five-Year Trend Information – Pension Trust Funds Fiscal Annual Pension Percentage of Net Pension Period Ended Cost (APC)APC Contributed Obligation Police 12/31/11 (10 months)6,283,638$ 85.40% 13,433,187$ 2/28/11 8,933,767 91.65% 12,515,848 2/28/10 7,914,901 104.71%10,836,432 2/28/09 7,233,096 115.50%10,495,325 2/29/08 6,789,705 91.52%11,100,974 Firefighters' 12/31/11 (10 months) 4,506,075 96.92%8,604,479 2/28/11 7,216,303 92.18%8,465,557 2/28/10 6,441,073 102.37%7,186,892 2/28/09 5,928,290 115.77%6,814,595 2/29/08 5,575,720 98.27%7,341,644 The Firefighters' Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government-guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. The Police Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government- guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. The only exception to the aforementioned is investments in FNMA (10%). -94- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued I. Pensions - Detailed Statement of Net Assets Firefighters' Police Total Pension Pension Pension Assets Cash and short-term investments 3,572,681$ 3,211,981$ 6,784,662$ Receivables Accrued interest 95,038 351,179 446,217 Due from other funds 1,063,387 1,299,081 2,362,468 Total Receivables 1,158,425 1,650,260 2,808,685 Investments, at fair value Common Stock 12,609,091 23,484,485 36,093,576 U.S. Government and agency obligations 13,458,693 27,897,001 41,355,694 Mutual funds 24,101,512 16,375,844 40,477,356 Total Investments 50,169,296 67,757,330 117,926,626 Total Assets 54,900,402 72,619,571 127,519,973 Liabilities Vouchers payable 6,781 23,307 30,088 Net assets held in trust for pension benefits 54,893,621$ 72,596,264$ 127,489,885$ -95- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued J. Pensions - Detailed Statement of Changes in Net Assets Firefighters' Police Total Pension Pension Pension Additions Contributions Employer 4,367,019$ 5,366,230$ 9,733,249$ Plan members 742,350 1,149,735 1,892,085 Other-Donations, Legal Sett., Surplus Sales 134 69 203 Total Contributions 5,109,503 6,516,034 11,625,537 Investment income Net appreciation (depreciation) in fair value of investments 443,976 (1,208,517) (764,541) Interest 835,335 2,268,478 3,103,813 Total investment income 1,279,311 1,059,961 2,339,272 Less investment expense 169,307 170,765 340,072 Net investment income 1,110,004 889,196 1,999,200 Total Additions 6,219,507 7,405,230 13,624,737 Deductions Benefits 5,608,851 7,061,270 12,670,121 Refunds of contributions - 128,188 128,188 Administrative expense 75,857 85,022 160,879 Total Deductions 5,684,708 7,274,480 12,959,188 Net increase 534,799 130,750 665,549 Net assets held in trust for pension benefits Beginning 54,358,822 72,465,514 126,824,336 Ending 54,893,621$ 72,596,264$ 127,489,885$ -96- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Ten Months ended December 31, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued K. Pensions - Actuarial Valuations Firefighters' Police Pension Pension Fund Fund Valuation date March 1, 2011 March 1, 2011 Actuarial cost method Entry-Age Normal Entry-Age Normal Amortization method Level percent Closed Level percent Closed Remaining amortization period 22 Years , 4 months 22 Years, 4 months Actuarial valuation method 5-year smoothed mkt. 5-year smoothed mkt. L. Funding Status and Progress As of March 1, 2011, the City's Police Pension plan was 45.76% funded. The City's actuarial accrued liability for benefits was $156,201,256 and the actuarial value of assets was $71,478,229 resulting in an underfunded actuarial accrued liability (UAAL) of $84,723,027. The covered payroll for the ten months ended December 31, 2011 (annual payroll of active employees covered by the Police Pension Plan) was $13,803,135 and the ratio of the UAAL to the covered payroll was 613.80%. As of March 1, 2011, the City's Fire Pension plan was 45.55% funded. The City's actuarial accrued liability for benefits was $119,011,406 and the actuarial value of assets was $54,214,525 resulting in an underfunded actuarial accrued liability (UAAL) of $64,796,881. The covered payroll for the ten months ended December 31, 2011 (annual payroll of active employees covered by the Fire Pension Plan) was $9,283,861 and the ratio of the UAAL to the covered payroll was 697.95%. The information presented in the Notes to the Financial Statements was determined as part of the actuarial valuations at the dates specified. Additional information as of the latest actuarial valuation follows: -97- REQUIRED SUPPLEMENTARY INFORMATION -98- CITY OF EVANSTON, ILLINOIS Firefighters' Pension Fund, Police Pension Fund, Illinois Municipal Retirement Fund and Post Employment Benefits Schedules of Funding Progress Required Supplementary Information UAAL as a Percentage Actuarial of Covered Actuarial Value of Funded Covered Payroll Valuation Assets Ratio Payroll Under/(Over) Date (a)(a/b) ( c ) ((b-a)/c) Firefighters' Pension 3/1/2011 54,214,525$ 119,011,406$ 64,796,881$ 45.55% 7,736,550$ 837.54% 3/1/2010 52,021,778 129,493,139 77,471,361 40.17% 9,133,000 848.26% 3/1/2009 49,410,755 119,852,896 70,442,141 41.23% 9,242,000 762.20% 3/1/2008 47,006,917 111,696,236 64,689,319 42.08% 8,999,000 718.85% 3/1/2007 43,742,297 106,361,853 62,619,556 41.13% 8,402,000 745.29% 3/1/2006 40,653,428 84,413,071 43,759,643 48.16% 8,150,000 536.93% 3/1/2005 38,327,422 78,759,019 40,431,597 48.66% 7,684,000 526.18% Police Pension 3/1/2011 71,478,229$ 156,201,256$ 84,723,027$ 45.76% 11,502,613$ 736.55% 3/1/2010 68,998,555 166,228,478 97,229,923 41.51% 13,117,000 741.25% 3/1/2009 66,514,296 154,971,310 88,457,014 42.92% 12,632,549 700.23% 3/1/2008 64,355,651 145,458,945 81,103,294 44.24% 12,142,000 667.96% 3/1/2007 61,795,438 139,371,086 77,575,648 44.34% 11,522,000 673.28% 3/1/2006 58,400,853 112,448,880 54,048,027 51.94% 11,195,000 482.79% 3/1/2005 55,269,914 106,426,694 51,156,780 51.93% 10,642,000 480.71% Illinois Municipal Retirement Fund (City) 12/31/2011 65,199,440$ 86,311,655$ 21,112,215$ 75.54% 32,270,312$ (41.79%) 12/31/2010 61,673,349 80,396,511 18,723,162 76.71% 32,163,415 58.21%) 12/31/2009 50,465,714 79,011,161 28,545,447 63.87% 33,485,370 85.25%) 12/31/2008 44,075,583 72,888,719 28,813,136 60.47% 34,189,216 84.28%) 12/31/2007 88,101,956 84,705,898 (3,396,058) 104.01% 34,496,585 (9.84%) 12/31/2006 87,758,900 82,928,874 (4,830,026) 105.82% 32,625,369 (14.80%) 12/31/2005 82,368,849 79,384,403 (2,984,446) 103.76% 31,403,514 (9.50%) 12/31/2004 77,206,655 74,129,924 (3,076,731) 104.15% 29,568,219 (10.41%) 12/31/2003 76,984,367 70,647,540 (6,336,827) 108.97% 29,240,514 (21.67%) Illinois Municipal Retirement Fund (Township) 12/31/2010 331,048$ 305,956$ (25,092)$ 108.20% 334,330$ (7.51%) 12/31/2009 476,660 380,918 (95,742) 125.13% 330,215 (28.99%) 12/31/2008 405,691 317,964 (87,727) 127.59% 261,152 (33.59%) 12/31/2007 612,352 360,059 (252,293) 170.07% 338,122 (74.62%) 12/31/2006 514,875 321,366 (193,509) 160.21%344,707 (56.14%) 12/31/2005 413,112 253,244 (159,868) 163.13% 314,044 (50.91%) 12/31/2004 612,303 450,398 (161,905) 135.95% 325,805 (49.69%) 12/31/2003 585,069 429,243 (155,826) 136.30% 345,639 (45.08%) 12/31/2002 810,301 512,878 (297,423) 157.99% 338,707 (87.81%) Post Employment Benefits other than Pension 12/31/2011 -$ 16,994,544$ 16,994,544$ - 48,101,372$ 35.33% 3/1/2010 - 12,259,348 12,259,348 - 51,896,579 23.62% 3/1/2009 - 11,762,298 11,762,298 - 50,141,622 23.46% 3/1/2008 - 7,634,991 7,634,991 - 50,230,393 15.20% 3/1/2007 - 7,254,074 7,254,074 - 48,531,780 14.95% Note: See notes to Required Supplementary Information and Auditors' Report. December 31, 2011 Actuarial Accrued Liability (AAL) Projected Unit Credit (b) Unfunded AAL (UAAL) (b-a) -99- CITY OF EVANSTON, ILLINOIS Firefighters and Police Pension Funds Schedules of Employer Contribution Required Supplementary Information Annual Annual Tax Levy Required City's Percentage Required City's Percentage Year Contribution Contribution Contributed Contribution Contribution Contributed 2011 4,468,888$ 4,367,153$ 97.72% 6,232,638$ 5,366,299$ 86.10% 2010 7,148,759 5,937,637 83.06% 8,831,924 7,254,351 82.14% 2009 5,828,112 5,937,637 101.88% 7,081,620 7,254,351 102.44% 2008 5,486,699 5,217,187 95.09% 6,659,960 6,345,667 95.28% 2007 4,174,271 6,139,178 147.07% 4,636,539 7,717,650 166.45% 2006 3,921,530 3,867,153 98.61% 4,301,359 4,217,457 98.05% 2005 3,317,158 3,459,626 104.29% 4,071,765 4,295,601 105.50% 2004 3,041,911 3,398,340 111.72% 4,274,043 4,271,102 99.93% 2003 2,685,046 2,690,742 100.21% 3,505,934 3,522,862 100.48% 2002 2,355,236 2,374,744 100.83% 3,224,902 3,252,113 100.84% Note: See notes to Required Supplementary Information and Auditors' Report. Firefighters' Pension Fund Police Pension Fund December 31, 2011 -100- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Required Supplementary Information For the Ten Months ended December 31, 2011 Original & Final Budget Actual Variance Revenues Taxes 35,609,123$ 36,198,119$ 588,996$ Licenses and permits 7,287,309 6,775,866 (511,443) Intergovernmental 12,729,965 13,364,686 634,721 Charges for services 6,085,856 6,283,196 197,341 Fines 3,806,864 3,279,785 (527,079) Investment income 12,000 2,073 (9,927) Miscellaneous 3,548,621 3,276,503 (272,118) Total Revenues 69,079,737 69,180,228 100,491 Expenditures General management and support 12,660,474 11,914,893 745,581 Public safety 31,456,425 31,367,067 89,358 Public works 6,862,268 6,339,072 523,196 Health and human resource development 3,078,238 2,887,812 190,426 Recreation and cultural opportunities 16,314,891 15,980,974 333,917 Housing and economic development 2,824,206 2,462,258 361,948 Total Expenditures 73,196,502 70,952,076 2,244,426 (Deficiency) of Revenues (under) Expenditures (4,116,765) (1,771,848) 2,344,917 Other Financing Sources (Uses) Operating transfers in (out) West Evanston TIF 50,000 50,000 - Motor Fuel Tax Fund 697,492 697,492 - Economic Development Fund 377,256 377,256 - Housing Fund 19,992 19,992 - Washington National TIF Debt Service Fund 325,000 325,000 - Howard Hartrey Debt Service 141,600 141,600 - Southwest TIF I Debt Service Fund 24,100 24,100 - Debt Service Fund (676,980) (676,980)- Howard Ridge TIF 120,400 120,400 - Capital Improvement Fund 300,000 300,000 - Water Fund 2,737,905 2,737,905 - 4,116,765 4,116,765 - Net Change in Fund Balance -$ 2,344,917 2,344,917$ Fund Balance Beginning 30,039,063 Ending 32,383,980$ Note: See notes to Required Supplementary Information and Auditors' Report. -101- CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 1. DIGEST OF CHANGES - IMRF The principal changes were: - For regular members, fewer normal and early retirements are expected to occur. NOTE 2. CONVERSION FROM GAAP BASIS TO BUDGETARY BASIS General Fund Revenues GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances 63,224,728$ Increase (decrease) due to budgeting property taxes as revenue in the year of levy 5,955,500 Budgetary Basis Revenues 69,180,228$ Expenditures GAAP basis expenditures as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances 70,952,076$ Increase (decrease) due to changes in Emcumbrances - Budgetary Basis Expenditures 70,952,076$ Note: See Auditors' Report. The actuarial assumptions used to determine the actuarial accrued liabilityfor 2011 are based on the 2002-2004 Experience Study. - The 1994 Group Annuity Mortality implemented Adjustments necessary to convert City revenues and expenditures for the ten months ended December 31, 2011 on the GAAP basis to the budgetary basis are presented below: -102- GOVERNMENTAL FUND TYPES -103- City Funds Affordable Housing - to account for costs associated with housing-related programs of the City. Community Development Loan - to account for residential rehabilitation loans to residents. Economic Development - to account for cost associated with economic development activities of the City. Financing is provided primarily by Hotel Tax revenues. Emergency Telephone System - to account for revenues and expenditures for 911 emergency telephone service. Financing is provided by network connection surcharges. Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Motor Fuel Tax - to account for the operation of street maintenance programs and capital projects as authorized by the Illinois Department of Transportation. Financing is provided from the City's share of gasoline taxes. Library Endowment - to account for the activity of the funds donated to the library. These funds are invested at the direction of the library board and are used for library acquisitions. Neighborhood Improvement - to account for a portion of the sales tax revenues derived from retail sales of the Home Depot U.S.A. Inc. store in Evanston. Sales tax revenues allocated to this fund are to be expended on public projects that will benefit the immediate neighborhood of the store. Community Development Block Grant - to account for revenues and expenditures of the community block grant program. Financing is provided by the federal government on a reimbursement basis in accordance with federal formula. Expenditures are made in accordance with requirements of federal law. Special Service District No. 4 - to account for promotion, advertisement, and street maintenance costs of the area located in the City's central business district. Financing is provided by the City through an annual property tax levy. HOME - to account for the activity of the HOME program. Financing is provided by the federal government. Expenditures are made in accordance with the requirements of federal law. Neighborhood Stabilization Program 2 - funded by the American Recovery and Reinvestment Act of 2009 to stabilize neighborhoods that have been negatively impacted by high numbers of foreclosed and vacant homes. Homelessness Prevention and Rapid Re-Housing Program (HPRP) - funded by American Recovery and Reinvestment Act of 2009 to provide financial assistance and services to either prevent individuals and families from becoming homeless or help those who are experiencing homelessness to be quickly rehoused and stabilized. Continued -104- Township Funds Town - to account for general administrative services. Debt Service funds are used to account for the servicing of general long-term debt. Washington National Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Howard Ridge Tax Increment District - accumulated monies for the payments on redevelopment project for this special taxing district. Special Service District No. 5 - accumulated monies for the principal and interest payments on unlimited ad valorem tax bonds issued for this special taxing district. Special Assessment - to account for capital improvements financed by special assessments on property holder and public benefit contributions from the City. Capital Projects Funds Capital projects are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. West Evanston Tax Increment District - accumulated monies for the payments on redevelopment project for this special taxing district. Southwest Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Howard Hartrey Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. General Assistance - to account for the assistance given to persons and/or families to meet their basic living expenses. Debt Service Funds Special Revenue Funds - Continued Concluded -105- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet Special Revenue Emergency Motor Economic Telephone Library Neighborhood Fuel Tax Development System Endowment Improvement Cash and equivalents 1,043,574$ 1,960,455$ 1,261,007$ 439,220$ 109,915$ Investments - - - 2,594,797 - Receivables Property taxes (net of allowance) Current year levy - - - - - Notes - - - - - Allowance - - - - - Special assessments - - - - - Accrued interest - - - 9,435 - Other - 391,816 164,570 - - Property held for resale - - - - - Prepaid items - - - - - Due from other governments 156,670 - - - - Due from other funds - - - - - Total Assets 1,200,244$ 2,352,271$ 1,425,577$ 3,043,452$ 109,915$ Liabilities Vouchers payable -$ 83,039$ 98,950$ -$ -$ Due to other governments - - - - - Due to other funds - 81,623 15,869 - - Deferred revenues - - - - - Total Liabilities - 164,662 114,819 - - Fund Balances Nonspendable - - - - - Restricted Highway maintenance 1,200,244 - - - - Emergency telephone system - - 1,310,758 - - Library projects - - - 3,043,452 - HUD approved projects - - - - - Neighborhood improvements - - - - 109,915 Economic Development - - - - - Debt service - - - - - Township - - - - - Committed - 805,575 - - - Assigned - 1,382,034 - - - Unassigned - - - - - Total Fund Balances (Deficit)1,200,244 2,187,609 1,310,758 3,043,452 109,915 Total Liabilities and Fund Balances 1,200,244$ 2,352,271$ 1,425,577$ 3,043,452$ 109,915$ Liabilities and Fund Balances Assets December 31, 2011 -106- Special Revenue Special Community Community Neighborhood Service Total Affordable Development Development Stabilization District City Housing HOME Block Grant Loan Program 2 No. 4 HPRP Funds 557,524$ 14,246$ 58,905$ 53,521$ 3,222$ 10,091$ -$ 5,511,680$ - - - - - - - 2,594,797 - - - - - 403,472 - 403,472 1,444,162 2,670,863 24,799 2,054,421 - - - 6,194,245 - - (12,000) (78,000) - - - (90,000) - - - - - - - - - - - - - - - 9,435 246,831 - - - - - - 803,217 - - 410,000 - - - - 410,000 - - - - - - - - - 147,707 359,614 - 726,390 - - 1,390,381 10,000 - 78 - - - - 10,078 2,258,517$ 2,832,816$ 841,396$ 2,029,942$ 729,612$ 413,563$ -$ 17,237,305$ -$ 112,195$ 364,817$ 26,386$ 722,926$ -$ -$ 1,408,313$ - - - 260 3,222 - - 3,482 - 3 53,780 1,216 3,464 100,000 - 255,955 - - - - - 374,594 - 374,594 - 112,198 418,597 27,862 729,612 474,594 - 2,042,344 - - - - - - - - - - - - - - - 1,200,244 - - - - - - - 1,310,758 - - - - - - - 3,043,452 - 2,720,618 422,799 2,002,080 - - - 5,145,497 2,258,517 - - - - - 2,368,432 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 805,575 - - - - - - - 1,382,034 - - - - - (61,031) - (61,031) 2,258,517 2,720,618 422,799 2,002,080 - (61,031) - 15,194,961 2,258,517$ 2,832,816$ 841,396$ 2,029,942$ 729,612$ 413,563$ -$ 17,237,305$ Continued -107- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued December 31, 2011 and March 31, 2011 for City and Township respectively Total Total General Township Special Town Assistance Funds Revenue Cash and equivalents 297,152$ 1,216,667$ 1,513,819$ 7,025,499$ Investments - - - 2,594,797 Receivables Property taxes (net of allowance) Current year levy 241,659 814,717 1,056,376 1,459,848 Notes - - - 6,194,245 Allowance - - - (90,000) Special assessments - - - - Accrued interest - - - 9,435 Other 11,926 1,368 13,294 816,511 Property held for resale - - - 410,000 Prepaid items - - - - Due from other governments - - - 1,390,381 Due from other funds - 14,689 14,689 24,767 Total Assets 550,737$ 2,047,441$ 2,598,178$ 19,835,483$ Liabilities Vouchers payable 98,531$ 42,204$ 140,735$ 1,549,048$ Due to other governments - - - 3,482 Due to other funds 14,689 - 14,689 270,644 Deferred revenues 134,688 472,218 606,906 981,500 Total Liabilities 247,908 514,422 762,330 2,804,674 Fund Balances Nonspendable - - - - Restricted Highway maintenance - - - 1,200,244 Emergency telephone system - - - 1,310,758 Library projects - - - 3,043,452 HUD approved projects - - - 5,145,497 Neighborhood improvements - - - 2,368,432 Economic Development - - - - Debt service - - - - Township 302,829 1,533,019 1,835,848 1,835,848 Committed - - - 805,575 Assigned - - - 1,382,034 Unassigned - - - (61,031) Total Fund Balances (Deficit)302,829 1,533,019 1,835,848 17,030,809 Total Liabilities and Fund Balances 550,737$ 2,047,441$ 2,598,178$ 19,835,483$ Assets Special Revenue Liabilities and Fund Balances -108- Howard Washington Howard West Special Southwest Hartrey National Ridge Evanston Service Tax Tax Tax Tax Tax Total District Increment Increment Increment Increment Increment Debt No.5 District District District District District Service 15,660$ 8,119$ 4,900,873$ 7,802,957$ 968,447$ 933,885$ 14,629,941$ - - - - - - - 428,756 451,421 1,212,637 5,077,823 644,407 484,794 8,299,838 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 378,853 - - - - - 378,853 - - - - - - - - - 100,000 - 130,000 490,000 720,000 823,269$ 459,540$ 6,213,510$ 12,880,780$ 1,742,854$ 1,908,679$ 24,028,632$ -$ -$ -$ -$ 7,184$ 3,000$ 10,184$ - - - - - - - - 130,000 - 190,000 - - 320,000 375,100 443,623 1,212,637 4,496,432 634,917 410,086 7,572,795 375,100 573,623 1,212,637 4,686,432 642,101 413,086 7,902,979 378,853 - - - - - 378,853 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,841,573 6,100,349 1,100,753 1,495,593 11,538,268 69,316 - 2,159,300 2,093,999 4,322,615 - - - - - - - - - - - - - - - - - - - - - - (114,083) - - - - (114,083) 448,169 (114,083) 5,000,873 8,194,348 1,100,753 1,495,593 16,125,653 823,269$ 459,540$ 6,213,510$ 12,880,780$ 1,742,854$ 1,908,679$ 24,028,632$ Debt Service Continued -109- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Special Total Assessment Nonmajor Capital Governmental Projects Funds Cash and equivalents 3,120,741$ 24,776,181$ Investments - 2,594,797 Receivables Property taxes (net of allowance) Current year levy - 9,759,686 Notes - 6,194,245 Allowance - (90,000) Special assessments 737,084 737,084 Accrued interest - 9,435 Other - 816,511 Property held for resale - 410,000 Prepaid items - 378,853 Due from other governments - 1,390,381 Due from other funds 13,910 758,677 Total Assets 3,871,735$ 47,735,850$ Liabilities Vouchers payable 157,996$ 1,717,228$ Due to other governments - 3,482 Due to other funds 31,766 622,410 Deferred revenues 737,084 9,291,379 Total Liabilities 926,846 11,634,499 Fund Balances Nonspendable - 378,853 Restricted Highway maintenance - 1,200,244 Emergency telephone system - 1,310,758 Library projects - 3,043,452 HUD approved projects - 5,145,497 Neighborhood improvements - 2,368,432 Economic Development - 11,538,268 Debt service - 4,322,615 Township - 1,835,848 Committed - 805,575 Assigned 2,944,889 4,326,923 Unassigned - (175,114) Total Fund Balances (Deficit)2,944,889 36,101,351 Total Liabilities and Fund Balances 3,871,735$ 47,735,850$ Assets December 31, 2011 Liabilities and Fund Balances Concluded -110- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances For the Ten Months ended December 31, 2011 Emergency Motor Economic Telephone Library Neighborhood Fuel Tax Development System Endowment Improvement Revenues Taxes -$ 1,682,505$ 895,430$ -$ 20,000$ Special assessments - - - - - Intergovernmental 2,195,972 - - - - Investment income 615 179 296 (28,626) - SSI reimbursement - - - - - Medical reimbursement - - - - - Miscellaneous - - - 31,000 - Total Revenues 2,196,587 1,682,684 895,726 2,374 20,000 Expenditures Current General management and support - - - - - Public safety - - 973,428 - - Public works 980,941 - - - - Health and human resource development - - - - - Recreation and cultural opportunities - - - 111,000 - Housing and economic development - 1,532,151 - - - Debt service Principal - - - - - Interest - - - - - Capital outlay - - - - - Total Expenditures 980,941 1,532,151 973,428 111,000 - Excess (Deficiency) of Revenues Over (Under) Expenditures 1,215,646 150,533 (77,702) (108,626) 20,000 Other Financing Sources (Uses) Transfers in (out) General (697,492) (377,256) - - - General Obligation Debt Service - (8,870) (6,370) - - Motor Vehicle Parking System - - - - - Total Other Financing Sources (Uses)(697,492) (386,126) (6,370) - - Net Change in Fund Balances 518,154 (235,593) (84,072) (108,626) 20,000 Fund Balances (Deficit) - Beginning 682,090 2,423,202 1,394,830 3,152,078 89,915 Fund Balances (Deficit) - Ending 1,200,244$ 2,187,609$ 1,310,758$ 3,043,452$ 109,915$ Special Revenue -111- Special Community Community Neighborhood Service Total Affordable Development Development Stabilization District City Housing HOME Block Grant Loan Program 2 No. 4 HPRP Funds -$ -$ -$ -$ -$ 214,614$ -$ 2,812,549$ - - - - - - - - - 175,068 1,754,755 4,800 5,409,752 - 195,943 9,736,290 245 6,030 - 1,018 - 30 - (20,213) - - - - - - - - - - - - - - - - 33,357 - 5,302 - - - - 69,659 33,602 181,098 1,760,057 5,818 5,409,752 214,644 195,943 12,598,285 - - - - - - - - - - - - - - - 973,428 - - - - - - - 980,941 - - - - - - - - - - - - - - - 111,000 54,246 97,011 1,755,967 8,460 5,407,842 388,000 195,943 9,439,620 - - - - - - - - - - - - - - - - - - - - - - - - 54,246 97,011 1,755,967 8,460 5,407,842 388,000 195,943 11,504,989 (20,644) 84,087 4,090 (2,642) 1,910 (173,356) - 1,093,296 (19,992) - - - - - - (1,094,740) - - (4,090) - (1,910) - - (21,240) - - - - - - - - (19,992) - (4,090) - (1,910) - - (1,115,980) (40,636) 84,087 - (2,642) - (173,356) - (22,684) 2,299,153 2,636,531 422,799 2,004,722 - 112,325 - 15,217,645 2,258,517$ 2,720,618$ 422,799$ 2,002,080$ -$ (61,031)$ -$ 15,194,961$ Special Revenue Continued -112- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances - Continued For the Ten Months ended December 31, 2011 and Twelve Months ended March 31, 2011 for City and Township respectively Total Total General Township Special Town Assistance Funds Revenue Revenues Taxes 299,184$ 978,529$ 1,277,713$ 4,090,262$ Special assessments - - - - Intergovernmental 62,910 - 62,910 9,799,200 Investment income 352 1,581 1,933 (18,280) SSI reimbursement - 23,205 23,205 23,205 Medical reimbursement - 2,398 2,398 2,398 Miscellaneous - - - 69,659 Total Revenues 362,446 1,005,713 1,368,159 13,966,444 Expenditures Current General management and support 566,824 1,066,729 1,633,553 1,633,553 Public safety - - - 973,428 Public works - - - 980,941 Health and human resource development - - - - Recreation and cultural opportunities - - - 111,000 Housing and economic development - - - 9,439,620 Debt service Principal - - - - Interest - - - - Capital outlay - - - - Total Expenditures 566,824 1,066,729 1,633,553 13,138,542 Excess (Deficiency) of Revenues Over (Under) Expenditures (204,378) (61,016) (265,394) 827,902 Other Financing Sources (Uses) Transfers in (out) General - - - (1,094,740) General Obligation Debt Service - - - (21,240) Motor Vehicle Parking System - - - - Total Other Financing Sources (Uses)- - - (1,115,980) Net Change in Fund Balances (204,378) (61,016) (265,394) (288,078) Fund Balances (Deficit) - Beginning 507,207 1,594,035 2,101,242 17,318,887 Fund Balances (Deficit) - Ending 302,829$ 1,533,019$ 1,835,848$ 17,030,809$ Special Revenue -113- Howard Washington Howard West Special Southwest Hartrey National Ridge Evanston Service Tax Tax Tax Tax Tax Total District Increment Increment Increment Increment Increment Debt No.5 District District District District District Service 263,566$ 212,489$ 641,140$ 3,326,012$ 479,036$ 352,740$ 5,274,983$ - - - - - - - - - - - - - - 34 31 1,826 6,708 100 2,285 10,984 - - - - - - - - - - - - - - - - - - 17,618 - 17,618 263,600 212,520 642,966 3,332,720 496,754 355,025 5,303,585 - - 1,200 - - - 1,200 - - - - - - - - - - 108,129 - - 108,129 - 700,000 - - - - 700,000 - - - - - - - - - - 5,083 27,551 63,875 96,509 - - 570,000 325,000 - - 895,000 53,853 - 141,058 118,200 - - 313,111 - - - - - - - 53,853 700,000 712,258 556,412 27,551 63,875 2,113,949 209,747 (487,480) (69,292) 2,776,308 469,203 291,150 3,189,636 - (24,100) (141,600) (325,000) (120,400) (50,000) (661,100) - - - - - - - - - - (3,419,636) - - (3,419,636) - (24,100) (141,600) (3,744,636) (120,400) (50,000) (4,080,736) 209,747 (511,580) (210,892) (968,328) 348,803 241,150 (891,100) 238,422 397,497 5,211,765 9,162,676 751,950 1,254,443 17,016,753 448,169$ (114,083)$ 5,000,873$ 8,194,348$ 1,100,753$ 1,495,593$ 16,125,653$ Debt Service Continued -114- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances - Continued Special Total Assessment Nonmajor Capital Governmental Projects Funds Revenues Taxes -$ 9,365,245$ Special assessments 235,028 235,028 Intergovernmental - 9,799,200 Investment income 7,687 391 SSI reimbursement - 23,205 Medical reimbursement - 2,398 Miscellaneous - 87,277 Total Revenues 242,715 19,512,744 Expenditures Current General management and support - 1,634,753 Public safety - 973,428 Public works - 1,089,070 Health and human resource development - 700,000 Recreation and cultural opportunities - 111,000 Housing and economic development - 9,536,129 Debt service Principal - 895,000 Interest - 313,111 Capital outlay 740,120 740,120 Total Expenditures 740,120 15,992,611 Excess (Deficiency) of Revenues Over (Under) Expenditures (497,405) 3,520,133 Other Financing Sources (Uses) Transfers in (out) General - (1,755,840) General Obligation Debt Service (317,660) (338,900) Motor Vehicle Parking System - (3,419,636) Total Other Financing Sources (Uses)(317,660) (5,514,376) Net Change in Fund Balances (815,065) (1,994,243) Fund Balances (Deficit) - Beginning 3,759,954 38,095,594 Fund Balances (Deficit) - Ending 2,944,889$ 36,101,351$ For the Ten Months ended December 31, 2011 Concluded -115- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original and Final Budget Actual Variance Taxes Property Current year levy 16,349,600$ 15,915,091$ (434,509)$ Prior year levy 166,600 320,426 153,826 Total Property Taxes 16,516,200 16,235,517 (280,683) Personal Property Replacement Tax 441,166 438,324 (2,842) Other Taxes State Use Tax 677,877 921,494 243,617 Sales Tax - Home Rule 4,552,968 4,902,429 349,461 Auto Rental Tax 29,155 34,004 4,849 Athletic Contest Tax 550,000 718,538 168,538 Fire Insurance Tax 90,000 - (90,000) Utility Tax 6,982,174 6,375,788 (606,386) Cigarette Tax 295,284 301,219 5,935 Evanston Motor Fuel Tax 550,378 481,751 (68,627) Liquor Tax 1,623,754 1,857,121 233,367 Parking Tax 1,800,000 1,942,347 142,347 Real Estate TransferTax 1,500,000 1,989,587 489,587 Amusement Tax 167 - (167) Total Other Taxes 18,651,757 19,524,278 872,521 Total Taxes 35,609,123 36,198,119 588,996 Continued -116- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original and Final Budget Actual Variance Licenses and Permits Vehicle Licenses 1,799,820$ 2,056,523$ 256,703$ Business Licenses 80,000 55,838 (24,162) Pet Licenses 22,000 40,740 18,740 Contractor Licenses 66,640 68,775 2,135 Rooming House Licenses 193,000 192,396 (604) Liquor Licenses 300,000 331,352 31,352 One Day Liquor Licenses 5,000 5,518 518 Farmer's Market Licenses 28,000 29,036 1,036 Rental building register 95,000 73,011 (21,989) Other Licenses 5,000 21,091 16,091 Long Term Care License 20,000 70,740 50,740 Seasonal Food estb - 6,673 6,673 Mobile food vehicle - 4,905 4,905 Hen coop lic - 400 400 Resident Care home License 80 - (80) Building Permits 2,500,000 1,834,961 (665,039) Plumbing Permits 135,000 75,923 (59,077) Electrical Permits 130,000 87,302 (42,698) Signs and Awnings 8,330 6,392 (1,938) Other /Misc Permits 183,260 123,259 (60,001) Elevator Permits 41,650 46,856 5,206 Heating Vent / AC Permits 210,000 246,946 36,946 Right of Way Permits 250,000 383,244 133,244 Residents Parking Permit 110,000 95,822 (14,178) Visitor Parking Permit 11,912 11,566 (346) Fire supression / Alarm Permit - 59,356 59,356 Annual Sign Fees 25,000 26,242 1,242 Plat PR. & Sign Approval HRG Fees 2,082 1,320 (762) Alarm Panel Francise Fee 4,165 6,840 2,675 Northwestern / Centel Easement - 47,000 47,000 Cable Franchise Fee 741,370 730,956 (10,414) PEG Fees - COMCAST - 34,883 34,883 Nicor Franchise Fee 95,000 - (95,000) Transfer Station Fee 225,000 - (225,000) Total Licenses and Permits 7,287,309 6,775,866 (511,443) Continued -117- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original and Final Budget Actual Variance Intergovernmental - Revenue from Other Agencies Retailer and Service Occupation Tax 7,300,000$ 7,671,007$ 371,007$ State Income Tax 4,635,565 4,924,177 288,612 State Highway Maintenance 54,994 50,138 (4,856) Health Department Basic Serv. Gran 163,000 76,181 (86,819) Dental Sealant Grant 1,666 1,494 (172) Summer Food Inspections 333 600 267 Kid Care Agreement - 1,500 1,500 Illinois Tobacco Free Community 12,500 25,593 13,093 Teen Pregnancy Prevension Grant 50,480 10,200 (40,280) Childhood Lead Poisoning Grant 250 1,000 750 Teen Parent Services Program 25,490 18,100 (7,390) Other State / County Grant 118,743 (50,689) (169,432) Tanning Parlor Inspection 83 200 117 Violence Crime Victim Asst. Grant 18,525 - (18,525) Fire Department Training 1,500 12,762 11,262 CRI Grant 33,320 35,681 2,361 PHEP Grant 58,310 50,818 (7,492) Dental Expansion Grant - 70,000 70,000 Dental Reimbursement Prog - 20,546 20,546 Summer Youth 20,000 - (20,000) Leadbase Paint Control Grant 80,000 - (80,000) Federal Grant / Aid 10,000 117,641 107,641 Energy Eff. & Consv. - (4,307) (4,307) Commission on Aging Grant - Advo 30,821 34,692 3,871 Civil Defence Grants (F.E.M.A.) 19,992 172,679 152,687 Police Training 6,664 8,000 1,336 HUD Emergency Shelter Grant 79,729 85,814 6,085 Law Enforcement Block Grant - (14,802) (14,802) Other Federal Aid 8,000 45,661 37,661 Total Intergovernmental - Revenue from Other Agencies 12,729,965 13,364,686 634,721 Continued -118- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original and Final Budget Actual Variance Charges for Services Recreation Recreation - program 4,544,253$ 4,525,891$ (18,362)$ Recreation - deferral - 1,625 1,625 Recreation -special events 37,000 28,602 (8,398) Total Recreation 4,581,253 4,556,118 (25,135) Library State Per Capita Grant 62,833 75,971 13,138 Library Video Rental 23,333 31,695 8,362 Non-Residents Card 833 1,461 628 Library Material Replacement Charg 12,500 8,818 (3,682) Library Miscellaneous Revenues - 21,234 21,234 Library Copy Machines Charges 22,083 17,370 (4,713) Library Meeting Room Rental 8,333 9,575 1,242 North Branch Rental Inc.29,500 43,000 13,500 Total Library 159,415 209,124 49,709 Charges for Services Other Service Charges Birth and Death Records - 5,325 5,325 Sanitation Classes 4,200 1,680 (2,520) Dental Clinic Fees 108,290 108,076 (214) Health Clinic Fees - Food Establishm 12,000 133,573 121,573 Dental Check up - 1,875 1,875 Emergency Dental Exam - 40 40 Amalgam Filling - 195 195 Dental Co-Pay - 5 5 Resin Filling - 365 365 Sedative Filling - 10 10 Extraction - 30 30 Pulpotomy - 40 40 Root Canal Payment - 15 15 Sealant Office Visit - 110 110 Additional Sealant - 40 40 Temporary License Fee 6,500 5,775 (725) Food Delivery Vehicle 100 1,300 1,200 Beverage Snack Vending Machine 200 24,540 24,340 Tobacco License 1,000 10,500 9,500 BeeKeeper License - 100 100 Birth Certificate 66,640 58,426 (8,214) Dealth Certificate - 16 . 23 57,477 23,292 (34,185) Funeral Director License 5,498 4,830 (668) Continued -119- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original and Final Budget Actual Variance Charges for Services - Continued Other Service Charges - Continued Temp Funeral Direct License 4,165$ 4,700$ 535$ Weights & Measures Examinations 833 2,140 1,307 Senior Taxi Coupon Sales 87,465 73,081 (14,384) Fire Cost Recovery Charge 8,330 2,515 (5,815) Other Services Charges - 774 774 Historic preservation 5,000 5,446 446 Tree Preservation Revenue - 8,475 8,475 Ambulance Service 820,525 819,367 (1,158) Towing Charges 2,499 - (2,499) Police Report Fees 13,328 9,258 (4,070) Wood Recycling 19,992 35,208 15,216 Zoning Fees 15,000 26,402 11,402 Fire Report Fees - 355 355 Fire Building inspections 6,000 8,013 2,013 Alarm Panel Subscription Fees 46,000 100,408 54,408 Skokie Animal Board Fee 6,248 7,869 1,621 Background Check Daycare Prov.- 490 490 New Pavement Degradation 41,650 27,149 (14,501) Plan Review 6,248 6,162 (86) Total Other Service Charges 1,345,188 1,517,954 172,766 Total Charges for Services 6,085,856 6,283,196 197,341 Fines Ticket Fines - Parking 3,006,667 2,469,554 (537,113) Regular Fines 274,910 174,236 (100,674) Boot Release Fee 56,644 48,602 (8,042) Fire False Alarm Fines 137,445 98,370 (39,075) Police False Alarm Fines - 20,400 20,400 Housing Code Violation Fines 50,000 100,056 50,056 Permit Penalty Fees 6,248 7,214 966 Administrative Adjudication Fine 124,950 235,042 110,092 Library Fines & Fees 150,000 126,311 (23,689) Total Fines 3,806,864 3,279,785 (527,079) Investment Income 12,000 2,073 (9,927) Continued -120- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original and Final Budget Actual Variance Miscellaneous Charges to Other Funds Recreation restricted accts 73,216$ 66,785$ (6,431)$ HPRP Grant Fund 27,000 18,480 (8,520) NSP 2 Grant Fund 278,000 103,116 (174,884) Community Development Fund 772,000 738,067 (33,933) Home Fund 56,400 40,651 (15,749) Emergency Telephone System Fund 104,958 104,958 - Parking Fund 536,868 536,868 - Sewer Fund 221,578 221,578 - Total Charges to Other Funds 2,070,020 1,830,503 (239,517) Miscellaneous Other Revenues Women Out Walking - 6,890 6,890 Property Sales and Rentals 117,830 47,218 (70,612) Donation 52,000 - (52,000) Damage to City Signage 1,666 - (1,666) Damage to City traffic Signal 16,660 - (16,660) Damage to Street Lights 16,660 - (16,660) Miscellaneous Revenue 46,667 195,779 149,112 Taxicab Revenue 5,831 5,200 (631) Teen baby nursery 41,000 - (41,000) Construction Inspection Overtime - 1,600 1,600 Reimbursements - School resource 298,700 `- (298,700) Reimbursements - Serve & Pro.- 55,946 55,946 Reimbursements - Salt Use - (15,141) (15,141) Reimbursements - Fire Dept.- 3,834 3,834 Payment in Lieu of Taxes 340,092 51,000 (289,092) Fund Balance Applied 130,000 - (130,000) Transfer from Dutch Elm Tree 356,000 356,000 - Private Elm Trees Ins.43,000 39,870 (3,130) Fees and Merchandise - 14,182 14,182 Citizens CPR Class Fees - 1,170 1,170 Parking Permits - Ryan Field 12,495 15,131 2,636 Change in Reserves - (97,942) (97,942) Sale of land - 765,263 765,263 Total Other Revenues 1,478,601 1,446,000 (32,601) Total Miscellaneous 3,548,621 3,276,503 (272,118) Total Revenues 69,079,737$ 69,180,228$ 100,491$ Concluded -121- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance General Management and Support City Council 374,718$ 360,089$ 14,629$ City Manager 1,675,952 1,336,449 339,503 City Clerk 148,413 151,872 (3,459) Law Department 828,120 805,247 22,873 Administrative Services 7,529,508 7,194,908 334,600 Facilities management 2,103,763 2,066,328 37,435 Total General Management and Support 12,660,474 11,914,893 745,581 Public Safety Police 20,263,642 20,352,407 (88,765) Fire 11,192,783 11,014,660 178,123 Total Public Safety 31,456,425 31,367,067 89,358 Public Works Public Works Director 220,634 201,124 19,510 Municipal Service Center 424,329 307,416 116,913 City Engineer 1,227,954 1,174,518 53,436 Traffic Engineer 736,852 674,495 62,357 Streets 4,252,499 3,981,519 270,980 Total Public Works 6,862,268 6,339,072 523,196 For the Ten Months ended December 31, 2011 Continued -122- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Health and Human Resource Development Health and Human Services Director 252,537$ 239,128$ 13,409$ Health Department 946,408 954,278 (7,870) Mental health and community purchased services 936,368 773,371 162,997 Human Relations 942,925 921,035 21,890 Total Health and Human Resource Development 3,078,238 2,887,812 190,426 Recreation and Cultural Opportunities Library 3,708,359 3,629,768 78,591 Recreation 7,343,164 7,026,281 316,883 Parks and forestry 4,027,351 4,237,759 (210,408) Ecology Center 411,921 367,666 44,255 Cultural arts 824,096 719,500 104,596 Total Recreation and Cultural Opportunities 16,314,891 15,980,974 333,917 Housing and Economic Development Community Development administration 155,412 150,340 5,072 Planning and zoning 683,244 636,444 46,800 Housing rehabilitation and property standards 897,726 761,064 136,662 Building code compliance 1,087,824 914,410 173,414 Total Housing and Economic Development 2,824,206 2,462,258 361,948 Total Expenditures 73,196,502$ 70,952,076$ 2,244,426$ For the Ten Months ended December 31, 2011 Concluded -123- CITY OF EVANSTON, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments 1,900,000$ 2,195,972$ 295,972$ Interest 2,000 615 (1,385) Total Revenues 1,902,000 2,196,587 294,587 Expenditures Public Works 1,200,000 980,941 219,059 Excess (Deficiency) of Revenues over (under) Expenditures 702,000 1,215,646 513,646 Other Financing Sources (Uses) Transfers in (out) General Fund (697,492) (697,492) - Net Change in Fund Balance 4,508$ 518,154 513,646$ Fund Balances Beginning 682,090 Ending 1,200,244$ For the Ten Months ended December 31, 2011 -124- CITY OF EVANSTON, ILLINOIS Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Taxes and Special Assessments 1,650,000$ 1,682,505$ 32,505$ Interest 8,000 179 (7,821) Total Revenue 1,658,000 1,682,684 24,684 Expenditures Housing and economic development 1,631,374 1,532,151 99,223 Excess of Revenues over Expenditures 26,626 150,533 123,907 Other Financing Sources (Uses) Transfers in (out) Debt Service (8,873) (8,870) 3 General Fund (377,256) (377,256) - Net Change in Fund Balance (359,503)$ (235,593) 123,910$ Fund Balances Beginning 2,423,202 Ending 2,187,609$ For the Ten Months ended December 31, 2011 -125- CITY OF EVANSTON, ILLINOIS Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Taxes and Special Assessments 865,000$ 895,430$ 30,430$ Interest 750 296 (454) Total Revenue 865,750 895,726 29,976 Expenditures Public Safety 1,133,958 979,798 154,160 Net Change in Fund Balance (268,208)$ (84,072) 184,136$ Fund Balance Beginning 1,394,830 Ending 1,310,758$ For the Ten Months ended December 31, 2011 -126- CITY OF EVANSTON, ILLINOIS Neighborhood Improvement Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Taxes and Special Assessments 20,000$ 20,000$ -$ Expenditures Housing and economic development 50,000 - 50,000 Net Change in Fund Balance (30,000)$ 20,000 50,000$ Fund Balances Beginning 89,915 Ending 109,915$ For the Ten Months ended December 31, 2011 -127- CITY OF EVANSTON, ILLINOIS Affordable Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Affordable Housing Demo Tax 8,330$ 20,000$ 11,670$ Developer Contributions - 2,000 2,000 Interest 1,000 245 (755) Miscellaneous 20,000 11,357 (8,643) Total Revenue 29,330 33,602 4,272 Expenditures Housing and economic development 248,234 54,246 193,988 Excess of Revenues over Expenditures (218,904) (20,644) 198,260 Other Financing Sources (Uses) Transfers in (out) Debt Service Fund (19,992) (19,992) - Net Change in Fund Balance (238,896)$ (40,636) 198,260$ Fund Balance Beginning 2,299,153 Ending 2,258,517$ For the Ten Months ended December 31, 2011 -128- CITY OF EVANSTON, ILLINOIS HOME Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments 560,000$ 175,068$ (384,932)$ Interest 10,000 6,030 (3,970) Total Revenue 570,000 181,098 (388,902) Expenditures Housing and economic development 513,600 97,011 416,589 Excess (Deficiency) of Revenues over (under) Expenditures 56,400 84,087 27,687 Other Financing Sources (Uses) Transfers in (out) General Fund (56,400) - 56,400 Net Change in Fund Balance -$ 84,087 84,087$ Fund Balance Beginning 2,636,531 Ending 2,720,618$ For the Ten Months ended December 31, 2011 -129- CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments Grant from the U.S. Department of Housing and Urban Development 2,008,337$ 1,754,755$ (253,582)$ Miscellaneous - 5,302 5,302 Total Revenues 2,008,337 1,760,057 (248,280) Expenditures Housing and economic development 2,004,247 1,755,967 248,280 Excess (Deficiency) of Revenues over (under) Expenditures 4,090 4,090 - Other Financing Sources (Uses) Transfers in (out) Debt Service (4,090) (4,090) - Net Change in Fund Balance -$ - -$ Beginning 422,799 Ending 422,799$ For the Ten Months ended December 31, 2011 -130- CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Administration/Planning CDBG Administration 344,587$ 337,872$ 6,715$ Total Administration/Planning 344,587 337,872 6,715 Economic Development Evanston Community Development Corp.35,000 - 35,000 Technology Innovation Center 25,000 25,000 - Neighborhood Facade Program 80,000 - 80,000 MBE/Small Business Assistance 2,000 2,000 - Total Economic Development 142,000 27,000 115,000 Housing Adaptive Devices - 225 (225) Housing Code Compliance 415,356 353,733 61,623 Demolition Vacant Lot - 10,902 (10,902) Housing Rehab Administration 196,317 145,974 50,343 Minor Repairs/Painting Assistance - E.N.A.W.100,000 91,264 8,736 Total Housing 711,673 602,098 109,575 Neighborhood Revitalization Curb/Sidewalk Replacement WNRSA 142,422 132,188 10,234 Curb/Sidewalk Replacement SNRSA 32,578 26,860 5,718 Curb/Ramp ADA 2008 45,000 45,000 - ECDC - Evanston Rebuilding Warehouse 50,000 25,000 25,000 F/J 30,000 29,205 795 Graffiti Removal Program 33,049 32,484 565 Handyman Assistance/Elderly Home Repair 14,000 12,126 1,874 Special Assessments/Alley Paving 15,000 8,501 6,499 School Dist. 65 Oakton Playground 6,200 6,200 - Snap Lighting 40,000 39,942 58 South Evanston Neighborhood Security - 5,100 (5,100) Total Neighborhood Revitalization 408,249 362,606 45,643 For the Ten Months ended December 31, 2011 Continued -131- CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Public Services Adaptive Equip for Disabled -$ 214$ (214)$ Brummel Park - 50,000 (50,000) Connections for the Homeless 3,480 3,480 - Disposition - 1817 Church - 3,369 (3,369) Evanston Community Defender 32,483 32,483 - Family Focus 17,394 17,394 - Family Focus Center Rehab 46,432 46,432 - Haitian Congress to Fortify Haiti 3,046 3,046 - Interfaith Action of Evanston 1,960 1,960 - Interfaith Housing Program/ Home Sharing 12,176 12,176 - Legal Assist Foundation 7,827 7,827 - McGaw YMCA 35,000 - 35,000 Meals at Home 11,306 11,306 - North Shore Senior Center 19,568 19,568 - Open studio Art 3,480 3,480 - SRSA Parkway Tree Planting & Landscaping 8,000 1,638 6,362 Summer Youth Employment 60,879 60,879 - Twiggs Park Improvements 40,000 74,892 (34,892) West Evanston Strategic Team 4,280 - 4,280 WRSA Parkway Tree Planting & Landscaping 12,000 5,417 6,583 Youth Action Ministry 8,697 - 8,697 Youth Job Center of Evanston 39,290 39,290 - YWCA Access - 1,100 (1,100) YWCA Shelter Project 30,440 30,440 - Total Public Services 397,738 426,391 (28,653) Total Expenditures 2,004,247$ 1,755,967$ 248,280$ For the Ten Months ended December 31, 2011 Concluded -132- CITY OF EVANSTON, ILLINOIS Community Development Loan Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments -$ 4,800$ 4,800$ Interest 9,000 1,018 (7,982) Total Revenues 9,000 5,818 (3,182) Expenditures Housing and economic development 20,000 8,460 11,540 Net Change in Fund Balance (11,000)$ (2,642) 8,358$ Fund Balances Beginning 2,004,722 Ending 2,002,080$ For the Ten Months ended December 31, 2011 -133- CITY OF EVANSTON, ILLINOIS Neighborhood Stabilization Program 2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments 8,387,345$ 5,409,752$ (2,977,593)$ Expenditures Housing and economic development 8,385,435 5,407,842 2,977,593 Excess (Deficiency) of Revenues over (under) Expenditures 1,910 1,910 - Other Financing Sources (Uses) Transfers in (out) Debt Service (1,910) (1,910) - Net Change in Fund Balance -$ - -$ Fund Balances Beginning - Ending -$ For the Ten Months ended December 31, 2011 -134- CITY OF EVANSTON, ILLINOIS Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Property taxes Current year levy 378,000$ 398,000$ 20,000$ Prior year levy - (4,001) (4,001) Interest - 30 30 Total Revenues 378,000 394,029 16,029 Expenditures Housing and economic development 378,000 388,000 (10,000) Net Change in Fund Balance -$ 6,029 6,029$ Fund Balance Beginning 307,532 Ending 313,561$ For the Ten Months ended December 31, 2011 -135- CITY OF EVANSTON, ILLINOIS Homeless Prevention & Rapid Re-Housing Program Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments 288,460$ 195,943$ (92,517)$ Expenditures Housing and economic development 288,460 195,943 92,517 Net Change in Fund Balance -$ - -$ Fund Balances Beginning - Ending -$ For the Ten Months ended December 31, 2011 -136- CITY OF EVANSTON, ILLINOIS Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Twelve Months ended March 31, 2011 Original and Final Budget Actual Variance Revenues Property taxes 295,753$ 299,184$ 3,431$ Interest - 352 352 Replacement tax 50,000 62,910 12,910 Total Revenues 345,753 362,446 16,693 Expenditures General management and support 668,798 566,824 101,974 Excess (Deficiency) of Revenues over (under) Expenditures (323,045) (204,378) 118,667 Other Financing Sources (Uses) Transfers in (out) General Assistance Fund 350,000 - (350,000) Net Change in Fund Balance 26,955$ (204,378) (231,333)$ Fund Balance Beginning 507,207 Ending 302,829$ -137- CITY OF EVANSTON, ILLINOIS Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Twelve Months ended March 31, 2011 Original and Final Budget Actual Variance Revenues Property taxes 986,553$ 978,529$ (8,024)$ Interest 1,500 1,581 81 SSI reimbursement 15,000 23,205 8,205 Medical reimbursement - 2,398 2,398 Total Revenues 1,003,053 1,005,713 2,660 Expenditures General management and support 1,233,748 1,066,729 167,019 Excess (Deficiency) of Revenues over (under) Expenditures (230,695) (61,016) 169,679 Other Financing Sources (Uses) Transfers in (out) Town Fund 250,000 - (250,000) Net Change in Fund Balance 19,305$ (61,016) (80,321)$ Fund Balance Beginning 1,594,035 Ending 1,533,019$ -138- CITY OF EVANSTON, ILLINOIS Special Assessment Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Special Assessments 550,000$ 235,028$ (314,972)$ Interest 25,000 7,687 (17,313) Total Revenue 575,000 242,715 (332,285) Expenditures Capital outlay 1,575,000 740,120 834,880 Total Expenditures 1,575,000 740,120 834,880 Excess (Deficiency) of Revenues over (under) Expenditures (1,000,000) (497,405) 502,595 Other Financing Sources (Uses) Transfers in (out) Debt Service Fund (317,660) (317,660) - Net Change in Fund Balance (1,317,660)$ (815,065) 502,595$ Fund Balance Beginning 3,759,954 Ending 2,944,889$ For the Ten Months ended December 31, 2011 -139- CITY OF EVANSTON, ILLINOIS Debt Service Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budgetary Basis) For the Ten Months ended December 31, 2011 Original Original Original Original and Final and Final and Final and Final Budget Actual Budget Actual Budget Actual Budget Actual Revenues Taxes Property taxes Current year levy, net 10,806,574$ 11,863,894$ 428,756$ 428,756$ 656,000$ 451,421$ 1,300,000$ 1,212,637$ Prior year levy, net - (250,064) - (2,847) - - - - Investment income 1,000 1,637 100 33 500 31 5,000 1,826 Miscellaneous - - - - - - - - Total Revenues 10,807,574 11,615,467 428,856 425,942 656,500 451,452 1,305,000 1,214,463 Expenditures General management and support 5,000 17,528 - - - - 460,000 1,200 Health and human resources development - - - - 840,000 700,000 - - Public Works - - - - - - - - Debt Service Principal 5,856,800 8,220,464 340,000 325,000 - - 570,000 605,000 Interest 4,012,876 4,660,064 88,756 98,231 - - 141,804 109,603 Fiscal agent fees 83,000 79,156 - - - - - - Total Expenditures 9,957,676 12,977,212 428,756 423,231 840,000 700,000 1,171,804 715,803 Excess (Deficiency) of Revenues over (under) Expenditures 849,898 (1,361,745) 100 2,711 (183,500) (248,548) 133,196 498,660 Other Financing Sources (Uses) Transfers in (out) General 871,528 727,560 - - (24,100) (24,100) (141,600) (141,600) Special Assessment 317,660 317,660 - - - - - - Motor Vehicle Parking System - - - - - - - - Total Other Financing Sources (Uses)1,189,188 1,045,220 - - (24,100) (24,100) (141,600) (141,600) Net Changes in Fund Balances 2,039,086$ (316,525) 100$ 2,711 (207,600)$ (272,648) (8,404)$ 357,060 Fund Balances (Deficit) Beginning 316,072 18,471 150,764 3,929,210 Ending (453)$ 21,182$ (121,884)$ 4,286,270$ Special Howard Hartrey TaxGeneralService District Southwest Tax Increment DistrictIncrement DistrictObligation Debt No. 5 -140- Original Original Original Original and Final and Final and Final and Final Budget Actual Budget Actual Budget Actual Budget Actual 4,800,000$ 5,031,545$ 689,000$ 644,364$ 580,000$ 480,819$ 19,260,330$ 20,113,436$ - 136,883 - 14,907 - 11,146 - (89,975) 25,000 6,708 400 101 1,000 2,285 33,000 12,621 - - - 17,618 - - - 17,618 4,825,000 5,175,136 689,400 676,990 581,000 494,250 19,293,330 20,053,700 - 5,084 - 27,552 490,000 63,875 955,000 115,239 - - - - - - 840,000 700,000 425,000 108,129 - - - - 425,000 108,129 325,000 405,000 - - - - 7,091,800 9,555,464 128,200 100,650 - - - - 4,371,636 4,968,548 - - - - - - 83,000 79,156 878,200 618,863 - 27,552 490,000 63,875 13,766,436 15,526,536 3,946,800 4,556,273 689,400 649,438 91,000 430,375 5,526,894 4,527,165 (325,000) (325,000) (120,400) (120,400) (50,000) (50,000) 210,428 66,460 - - - - - - 317,660 317,660 (3,419,636) (3,419,636) - - - - (3,419,636) (3,419,636) (3,744,636) (3,744,636) (120,400) (120,400) (50,000) (50,000) (2,891,548) (3,035,516) 202,164$ 811,637 569,000$ 529,038 41,000$ 380,375 2,635,346$ 1,491,648 6,295,670 562,228 1,040,512 12,312,927 7,107,307$ 1,091,266$ 1,420,887$ 13,804,575$ Totals Washington National Tax West Evanston Tax Increment District Howard Ridge Tax Increment DistrictIncrement District -141- PROPRIETARY FUND TYPES -142- CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Assets Cash and equivalents 6,075,993$ 77,727$ 2,247,604$ 109,599$ 8,510,923$ Restricted cash and equivalents and investments - - 634,375 400,000 1,034,375 Receivables Accounts - billed 699,514 - - - 699,514 Accounts - unbilled 831,869 - - - 831,869 Due from other funds 738,016 1,170,000 599,672 - 2,507,688 Prepaid Expenses - 599,672 - - 599,672 Inventory 699,003 - - - 699,003 Total Current Assets 9,044,395 1,847,399 3,481,651 509,599 14,883,044 Capital Assets Land 555,415 - - - 555,415 Construction in progress 208,099 - - 3,810,250 4,018,349 Capital assets being depreciated 78,369,991 - - - 78,369,991 Less accumulated depreciation (21,794,125) - - - (21,794,125) Total Capital Assets 57,339,380 - - 3,810,250 61,149,630 Total Assets 66,383,775$ 1,847,399$ 3,481,651$ 4,319,849$ 76,032,674$ Current Liabilities Vouchers payable 379,514$ -$ -$ 644,519$ 1,024,033$ Vouchers payable - restricted 204,266 - - - 204,266 Escrow account 6,000 - - - 6,000 Interest payable - restricted 16,544 24,672 - - 41,216 Revenue bonds payable - 575,000 - - 575,000 Notes payable-IEPA 67,505 - - - 67,505 General obligation bonds payable 169,534 - - - 169,534 Due to other funds 1,398,965 1,240,801 - - 2,639,766 Compensated absences payable 268,007 - - - 268,007 Total Current Liabilities 2,510,335 1,840,473 - 644,519 4,995,327 Long-Term Liabilities Notes payable-IEPA 1,215,087 - - - 1,215,087 Revenue bonds payable 595,000 - - - 595,000 OPEB liabilty 106,498 - - - 106,498 Compensated absences payable 293,382 - - - 293,382 General obligation bonds payable 3,839,604 - - - 3,839,604 IMRF Pension contributions payable 313,722 - - - 313,722 Unamortized bond discount on bonds payable 47,131 - - - 47,131 Total Long-Term Liabilities 6,410,424 - - - 6,410,424 Total Liabilities 8,920,759 1,840,473 - 644,519 11,405,751 Net Assets Invested in capital assets, net of related debt 52,110,310 (575,000) - 3,810,250 55,345,560 Restricted for debt service - - 634,375 - 634,375 Restricted for Capital Improvements - - - 400,000 400,000 Unrestricted 5,947,706 (13,074) 2,847,276 (534,920) 8,246,988 Total Net Assets 58,058,016 (588,074) 3,481,651 3,675,330 64,626,923 Total Liabilities and Net Assets 66,978,775$ 1,252,399$ 3,481,651$ 4,319,849$ 76,032,674$ Liabilities and Net Assets December 31, 2011 Assets -143- CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Changes in Net Assets - Reserved - Restricted Accounts Bond Depreciation, and Bond Improvement Interest Reserve and Extension Totals Increases Intrafund transfers in - accordance with bond ordinance unreserved retained earnings - Operation and Maintenance 100,000$ -$ 4,325,000$ 4,425,000$ Investment earnings 536 4,819 178 5,533 Total Increases 100,536 4,819 4,325,178 4,430,533 Decreases Bond interest 78,639 - 95,853 174,492 Bond issue adjustment 711,451 - - 711,451 Purchase of capital assets - - 2,150,280 2,150,280 Bond expenses and amortization of discount (69,730) - - (69,730) Payment of expense 150 - - 150 Total Decreases 720,510 - 2,246,133 2,966,643 Net Increase (Decrease)(619,974) 4,819 2,079,045 1,463,890 Net Assets Beginning 31,900 3,476,832 1,596,285 5,105,017 Ending (588,074)$ 3,481,651$ 3,675,330$ 6,568,907$ For the Ten Months ended December 31, 2011 -144- CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account (With Comparative Totals For the Twelve Months ended February 28, 2011) Prior Year Budget Actual Actual Operating Revenues Charges for services 10,504,299$ 10,766,262$ 13,086,057$ Miscellaneous 775,008 1,602,271 651,825 Total Operating Revenues 11,279,307 12,368,533 13,737,882 Operating Expenses Excluding Depreciation Administration 681,872 786,111 820,136 Operations Pumping 2,270,869 1,978,311 2,075,791 Filtration 2,138,628 1,923,779 2,170,905 Meter maintenance 320,115 269,115 294,342 Distribution 1,260,167 988,315 1,205,917 Other 335,291 201,021 624,486 Total Operating Expenses Excluding Depreciation 7,006,942 6,146,652 7,191,577 Operating Income Before Depreciation 4,272,365 6,221,881 6,546,305 Depreciation - 1,090,433 1,439,663 Operating Income 4,272,365 5,131,448 5,106,642 Nonoperating Revenues (Expenses) Investment income 9,996 1,035 2,773 Interest expense - (16,544) (67,615) Amortization of bond premium - 962 1,129 Net book value of capital assets disposed - (113,237) (13,434) Total Nonoperating Revenues (Expenses) 9,996 (127,784) (77,147) Income Before Transfers 4,282,361 5,003,664 5,029,495 Transfers In (Out) Transfer Out (3,128,159) (3,128,159) (3,286,800) Total Transfers In (Out)(3,128,159) (3,128,159) (3,286,800) Net Income 1,154,202$ 1,875,505 1,742,695 Other Changes in Unreserved Net Assets lntrafund transfers in (out) - net assets - reserved - restricted accounts (1,563,269) 1,744,885 Increase in Unreserved Net Assets 312,236 3,487,580 Unreserved Net Assets Beginning 57,745,780 54,258,200 Ending 58,058,016$ 57,745,780$ For the Ten Months ended December 31, 2011 Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual -145- CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual (With Comparative Totals For the Twelve Months ended February 28, 2011) Prior Year Budget Actual Actual Charges for Services, Net Water Sales Evanston 4,647,499$ 4,751,615$ 5,419,316$ Skokie 2,286,500 2,304,066 2,885,096 Northwest Water Commission 3,570,300 3,710,581 4,781,645 Total Charges for Services 10,504,299 10,766,262 13,086,057 Miscellaneous Fees and outside work 146,640 94,184 79,439 Fees, merchandise and other 628,368 1,508,087 572,386 Total Miscellaneous 775,008 1,602,271 651,825 Total Operating Revenues 11,279,307$ 12,368,533$ 13,737,882$ For the Ten Months ended December 31, 2011 -146- Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Fleet Services Fund - to account for the costs of operating the municipal service center maintenance facility for transportation equipment used by other City departments. Such costs are billed to the user departments at actual cost. Actual costs include depreciation on the transportation equipment. Insurance Fund - to account for the costs of administering general liability claims and workers' compensation programs. Such costs are billed to the General Fund. -147- CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Net Assets Fleet Services Insurance Totals Current Assets Cash and equivalents 1,984,666$ 741,888$ 2,726,554$ Receivables - other 24,247 - 24,247 Inventories 573,872 - 573,872 Prepaid Expenses 59,615 514,133 573,748 Due from other funds - 115,706 115,706 Total Unrestricted Current Assets 2,642,400 1,371,727 4,014,127 Capital Assets Cost 21,486,259 - 21,486,259 Accumulated depreciation (15,167,134) - (15,167,134) Total Capital Assets 6,319,125 - 6,319,125 Total Assets 8,961,525 1,371,727 10,333,252 Liabilities and Fund Equity Current Liabilities Vouchers payable 832,478 40,952 873,430 Compensated absences payable 21,524 - 21,524 Claims payable - 2,106,361 2,106,361 Due to other funds 37,637 - 37,637 Total Current Liabilities 891,639 2,147,313 3,038,952 Long-Term Liabilities Compensated absences payable 73,360 - 73,360 OPEB Liability 37,790 - 37,790 Claims payable - 5,349,185 5,349,185 Total Long-Term Liabilities 111,150 5,349,185 5,460,335 Total Liabilities 1,002,789 7,496,498 8,499,287 Net Assets (Deficit) Invested in capital assets 6,319,125 - 6,319,125 Unrestricted 1,639,611 (6,124,771) (4,485,160) Total Net Assets (deficit)7,958,736$ (6,124,771)$ 1,833,965$ December 31, 2011 Assets -148- CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets Fleet Services Insurance Totals Operating Revenues Charges for Services General Fund 2,877,887$ 1,851,968$ 4,729,855$ Sewer Fund 650,482 225,080 875,562 Water Fund 162,518 - 162,518 Motor Vehicle Parking System Fund 24,740 266,373 291,113 Emergency Telephone System - 14,540 14,540 Economic Development - 14,540 14,540 Community Development Block Grant - 14,540 14,540 Claims Reimbursements - 77,363 77,363 Health Insurance Contributions - 11,858,304 11,858,304 Miscellaneous 49,169 510 49,679 Total Operating Revenues 3,764,796 14,323,218 18,088,014 Operating Expenses General support 199,478 - 199,478 Major maintenance 2,529,701 - 2,529,701 General liability claims - 3,006,932 3,006,932 Workers compensation claims - 1,658,870 1,658,870 Health Insurance Premiums - 11,085,987 11,085,987 Other - 143,561 143,561 Total Operating Expenses 2,729,179 15,895,350 18,624,529 Operating Income (Loss) Before Depreciation 1,035,617 (1,572,132) (536,515) Depreciation 1,106,666 - 1,106,666 Operating Income (Loss)(71,049) (1,572,132) (1,643,181) Nonoperating Revenues (Expenses) Investment income 274 313 587 Gain (loss) on disposition of assets 85,109 - 85,109 Total Nonoperating Revenues (Expenses)85,383 313 85,696 Capital contributions & Grants 253,549 - 253,549 Transfers In (Out) Water Fund - 390,254 390,254 Debt Service (21,500) (5,710) (27,210) (21,500) 384,544 363,044 Change in Net Assets 246,383 (1,187,275) (940,892) Total Net Assets (Deficit) - Beginning 7,712,353 (4,937,496) 2,774,857 Total Net Assets (Deficit)- Ending 7,958,736$ (6,124,771)$ 1,833,965$ For the Ten Months ended December 31, 2011 -149- CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Cash Flows Fleet Services Insurance Totals Cash Flows from Operating Activities Receipts from customers and users 4,366,296$ 14,323,218$ 18,689,514$ Receipts from (to) interfund services provided (10,655) (262,933) (273,588) Payments to suppliers (2,203,548) (689,409) (2,892,957) Payments to employees (178,910) (2,665,459) (2,844,369) Payments for insurance premiums - (11,085,987) (11,085,987) Net Cash Provided by (used for) Operating Activities 1,973,183 (380,570) 1,592,613 Cash Flows from Noncapital Financing Activities Transfers In (Out) Water - 390,254 390,254 Debt Service (21,500) (5,710) (27,210) Net Cash Flows from Noncapital Financing Activities (21,500) 384,544 363,044 Cash Flows from Capital and Related Financing Activities Sale of capital assets 85,109 - 85,109 Acquisition and construction of capital assets (995,043) - (995,043) Capital contributions 253,549 - 253,549 Net Cash Used for Capital and Related Financing Activities (656,385) - (656,385) Cash Flows from Investing Activities Interest income 274 313 587 Net Cash provided by Investing Activities 274 313 587 Net Increase in Cash and Cash Equivalents 1,295,572 4,287 1,299,859 Cash and Equivalents Beginning 689,094 737,601 1,426,695 Ending 1,984,666$ 741,888$ 2,726,554$ For the Ten Months ended December 31, 2011 Continued -150- CITY OF EVANSTON, ILLINOIS Combining Statement of Cash Flows - Continued Internal Service Funds Fleet Services Insurance Totals Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities Operating Income (Loss)(71,049)$ (1,572,132)$ (1,643,181)$ Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation 1,106,666 - 1,106,666 Changes in assets and liabilities Increase/decrease in A/R miscellaneous 601,500 - 601,500 Prepaid expenses - (514,133) (514,133) Inventories (177,412) - (177,412) Compensated absences 12,109 - 12,109 OPEB Liability 8,459 - 8,459 Accounts payable 503,565 (31,715) 471,850 lnterfund payable (10,655) (262,933) (273,588) Claims payable - 2,000,343 2,000,343 Net Cash Provided By (Used For) Operating Activities 1,973,183$ (380,570)$ 1,592,613$ For the Ten Months ended December 31, 2011 Concluded -151- STATISTICAL SECTION (UNAUDITED) -152- Statistical Section Contents Page Financial Trends 154 - 157 Revenue Capacity 158 - 160 Debt Capacity 161 - 164 Demographic and Economic Information 165 - 166 Operating Information 167 - 172 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Government implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. These schedules offer demographic and economic indicators to help the reader understand the environment within the Government's financial activities take place. These schedules contain information about the Government's service and resources to help the reader understand how the Government's financial information relates to the services the Government provides and the activities it performs. This part of the Government's comprehensive annual financial report presents 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. These schedules contain trend information to help the reader understand how the Government's financial performance and well-being have changed over time. These schedules contain information to help the reader assess the Government's most significant local revenue source, the property tax. 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. -153- CITY OF EVANSTON, ILLINOIS Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year As of 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 Governmental Activities Invested in Capital Assets, net of related debt 35,437$ (9,753)$ 426$ 34,428$ 31,133$ 31,542$ 37,278$ 41,109$ 49,483$ 57,663$ Restricted 33,826 33,415 32,811 31,169 30,034 23,168 26,238 23,645 23,187 31,559 Unrestricted (15,245) 32,861 43,010 15,408 25,171 28,231 17,539 10,400 4,072 (24,033) Total Governmental Activities net assets 54,018$ 56,523$ 76,247$ 81,005$ 86,338$ 82,941$ 81,055$ 75,154$ 76,742$ 65,189$ Business-type Activities Invested in Capital Assets, net of related debt 96,615$ 103,339$ 114,442$ 129,084$ 140,621$ 159,185$ 172,399$ 192,921$ 207,162$ 215,755$ Restricted 9,491 11,158 11,274 10,449 9,374 1,986 1,987 3,378 1,624 1,034 Unrestricted 18,053 23,332 21,478 23,483 21,417 23,589 27,586 25,417 19,141 25,385 Total Business-type Activities net assets 124,159$ 137,829$ 147,194$ 163,016$ 171,412$ 184,760$ 201,972$ 221,716$ 227,927$ 242,174$ Primary Government Invested in Capital Assets, net of related debt 132,052$ 93,586$ 114,868$ 163,512$ 171,754$ 190,727$ 209,677$ 234,030$ 256,645$ 273,418$ Restricted 43,317 44,573 44,085 41,618 39,408 25,154 28,225 27,023 24,811 32,593 Unrestricted 2,808 56,193 64,488 38,891 46,588 51,820 45,125 35,817 23,213 1,352 Total Primary Government net assets 178,177$ 194,352$ 223,441$ 244,021$ 257,750$ 267,701$ 283,027$ 296,870$ 304,669$ 307,363$ Source: City Finance department -154- CITY OF EVANSTON, ILLINOIS Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Ended 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 Expenses Governmental Activities General government 14,274$ 15,791$ 14,451$ 19,537$ 19,951$ 20,072$ 18,017$ 19,773$ 17,517$ 17,911$ Public Safety 33,420 39,237 31,168 45,951 46,368 48,763 49,484 50,488 53,226 43,465 Public Works 13,187 13,065 14,225 14,632 16,505 21,566 21,628 18,509 15,626 12,399 Health & Human Resource Development 5,041 5,370 5,843 4,781 6,108 4,982 4,546 4,760 4,541 3,547 Housing & Economic Development 5,818 5,973 6,757 6,850 7,924 7,090 6,965 20,066 10,857 11,630 Culture and Recreation 16,247 17,129 18,276 19,792 18,303 20,634 20,002 9,120 20,142 15,607 Interest on Long-term Debt 4,540 4,900 5,086 5,874 6,926 5,522 4,041 4,396 5,595 3,114 Total governmental activities expenses 92,527 101,465 95,806 117,417 122,085 128,630 124,682 127,112 127,504 107,673 Business-type Activities Water 11,407 8,992 8,176 8,760 8,778 8,668 9,391 9,133 8,713 7,450 Sewer 8,544 8,964 8,781 9,219 9,588 8,972 8,726 8,779 8,784 7,083 Solid Waste - - - - - - - - - 4,317 Motor vehicle parking system 3,702 3,468 4,777 2,904 2,963 2,403 8,896 8,841 8,425 6,673 Sherman garage - - - - 1,613 4,270 - - - - Maple avenue garage 2,679 3,028 3,148 3,096 2,910 2,682 - - - - Total Business-type Activities 26,332 24,452 24,882 23,979 25,852 26,996 27,013 26,753 25,922 25,523 Total primary government expenses 118,859$ 125,917$ 120,688$ 141,396$ 147,937$ 155,625$ 151,695$ 153,865$ 153,426$ 133,196$ Program Revenues Governmental Activities Charges for Services General government 11,704$ 12,750$ 13,262$ 13,060$ 13,630$ 12,639$ 13,348$ 13,087$ 12,796$ 9,219$ Culture and Recreation 3,759 3,739 3,731 4,310 4,353 4,521 4,637 4,902 5,265 4,587 Other activities 4,479 6,799 9,253 10,293 8,779 14,518 10,289 7,946 9,377 8,523 Operating grants and contributions 3,006 3,480 3,713 3,441 3,679 5,982 5,117 5,898 9,851 9,861 Capital Grants and Contributions 1,963 1,459 212 1,127 185 118 113 4,037 8,026 3,941 Total governmental activities program revenues 24,911 28,227 30,171 32,231 30,626 37,778 33,504 35,870 45,315 36,131 Business-type activities Charges for Services Water 13,495 13,478 13,187 13,961 12,639 13,239 13,685 12,694 13,738 12,369 Sewer 15,806 15,436 14,913 16,077 14,394 14,239 13,774 13,243 13,393 11,377 Sherman garage - - - - 779 1,950 - - - - Solid Waste 2,900 Motor vehicle parking system 3,129 3,266 3,011 2,965 3,059 3,084 6,719 6,772 5,987 4,928 Maple avenue garage fund 1,266 1,263 1,512 1,622 1,417 1,430 - - - - Total Business-type activities program revenues 33,696 33,443 32,623 34,625 32,288 33,941 34,178 32,709 33,118 31,574 Total primary government program revenues 58,607$ 61,670$ 62,794$ 66,856$ 62,914$ 71,719$ 67,682$ 68,579$ 78,433$ 67,705$ Net (expense)/revenue Governmental activities (67,616) (73,238) (65,635) (85,186) (91,459) (90,852) (91,178) (91,242) (82,189) (71,542) Business-type activities 7,364 8,991 7,741 10,646 6,436 6,945 7,166 5,956 7,196 6,051 Total Primary Government net expense (60,252) (64,247) (57,894) (74,540) (85,023) (83,906) (84,012) (85,286) (74,993) (65,491) General Revenues and Other Changes in Net Assets Governmental Activities Taxes Property taxes 71,719$ 75,929$ 79,715$ 89,810$ 61,983$ 46,947$ 56,217$ 58,839$ 47,040$ 33,399$ Sales taxes 217 345 345 - 14,387 16,172 15,500 14,880 15,577 13,495 Investment earnings 1,266 1,710 1,547 2,997 3,752 3,653 360 721 557 32 Miscellaneous 2,513 2,096 4,996 1,412 17,287 25,799 26,684 24,601 27,501 21,244 Transfers (1,719) (4,335) (1,244) (4,277) (616) (5,116) (9,469) (13,700) (99) (8,180) Total governmental activities 76,112 75,745 85,359 89,942 96,793 87,455 89,292 85,341 90,576 59,990 Business-type activities Investment earnings 432 343 380 896 1,344 1,287 606 87 23 16 Miscellaneous - - - - - - (28) - - - Transfers 1,719 4,335 1,244 4,277 616 5,116 9,469 13,700 99 8,180 Total business-type activities 2,151 4,678 1,624 5,173 1,960 6,403 10,047 13,787 122 8,196 Total primary government 78,263$ 80,423$ 86,983$ 95,115$ 98,753$ 93,858$ 99,338$ 99,128$ 90,698$ 68,186$ Changes in Net Assets Governmental activities 8,496$ 2,507$ 19,724$ 4,756$ 5,334$ (3,397)$ (1,886)$ (5,901)$ 8,387$ (11,552)$ Business-type activities 9,515 13,669 9,365 15,819 8,396 13,348 17,212 19,743 7,318 14,247 Total primary government 18,011$ 16,176$ 29,089$ 20,575$ 13,730$ 9,951$ 15,326$ 13,842$ 15,705$ 2,695$ Ten months ended December 31, 2011 Source: City Finance department * * -155- CITY OF EVANSTON, ILLINOIS Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year As of 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 General Fund Reserved 4,614$ 4,665$ 7,948$ 6,027$ 1,327$ 1,108$ 1,275$ 1,585$ 1,995$ -$ Unreserved 13,110 14,375 15,209 18,804 24,866 24,840 19,752 18,603 20,009 - Assigned - - - - - - - - - 7,590 Unassigned - - - - - - - - - 10,803 Total general fund 17,724$ 19,040$ 23,157$ 24,831$ 26,193$ 25,948$ 21,027$ 20,188$ 22,004$ 18,393$ All Other Governmental Funds Reserved 29,211$ 28,750$ 30,761$ 33,937$ 31,741$ 29,739$ 31,757$ 28,953$ 28,738$ -$ Unreserved, reported in Special revenue funds 60,514 4,617 5,249 5,171 5,587 6,649 10,356 10,807 10,907 - Capital Projects Funds - 58,816 49,476 31,696 23,965 25,620 20,899 9,276 9,665 - Nonspendable - - - - - - - - - 1,419 Restricted - - - - - - - - - 32,353 Committed - - - - - - - - - 806 Assigned - - - - - - - - - 10,074 Unassigned - - - - - - - - - (175) Total all other governmental funds 89,725$ 92,183$ 85,486$ 70,804$ 61,293$ 62,008$ 63,012$ 49,036$ 49,310$ 44,477$ Notes: 1. Fund balances for debt service have been included in the reserved amounts. 2. December 31, 2011 presented per the new reporting standards of GASB 54. Source: City Finance department -156- CITY OF EVANSTON, ILLINOIS Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Ended 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 Revenues Taxes 58,814$ 63,833$ 66,744$ 75,661$ 77,137$ 75,767$ 84,035$ 84,726$ 73,559$ 56,466$ Licenses, fees and permits 6,459 6,699 6,773 9,164 8,061 10,276 8,820 7,279 8,661 6,776 Fines and penalties 3,742 4,163 3,999 3,781 4,029 4,660 4,442 4,151 4,003 3,280 Charges for services 6,262 5,997 6,053 6,905 7,167 7,732 8,399 8,680 9,786 6,283 Special Assessments 208 217 365 546 565 520 516 240 429 235 Intergovernmental 19,116 18,586 21,618 21,106 21,402 22,625 21,013 20,696 26,456 23,183 Investment Earnings 1,255 1,650 1,540 2,970 3,695 3,402 272 714 555 22 Other Revenues 6,859 6,953 9,451 5,812 5,578 5,116 4,679 4,642 6,390 4,133 Total Revenues 102,715 108,098 116,543 125,945 127,634 130,098 132,176 131,128 129,839 100,378 Expenditures General Government 12,565 13,365 14,666 15,601 14,539 18,190 16,498 16,184 23,463 13,594 Public Safety 32,093 33,896 36,323 39,094 39,690 42,466 49,999 48,970 50,352 42,140 Public Works 10,847 11,119 12,070 13,242 14,282 18,868 18,913 16,062 14,053 7,574 Recreation and cultural opportunities 13,712 14,287 15,493 16,526 16,683 19,118 18,942 18,100 17,399 16,192 Health and Human Development 4,839 5,272 5,801 4,566 5,850 4,982 4,546 4,760 4,541 3,588 Housing and Economic Development 5,662 5,882 6,717 6,646 7,683 7,089 6,963 9,120 11,345 11,999 Pensions 4,209 2,688 1,372 4,628 5,645 - - - - - Capital Outlay 13,301 9,941 18,208 42,087 18,986 12,416 8,209 7,960 7,112 5,832 Debt Service Interest 4,846 5,163 5,027 5,857 6,927 5,128 5,143 4,953 4,878 4,384 Fiscal agent fees 359 323 517 42 28 5 12 79 Principal 6,585 9,385 7,885 7,690 11,530 10,815 9,885 7,524 7,650 10,106 Total governmental activities expenditure 108,659 110,998 123,921 156,260 142,332 139,114 139,126 133,638 140,805 115,488 Net (expense)/revenue Governmental activities (5,944) (2,900) (7,378) (30,315) (14,698) (9,016) (6,950) (2,510) (10,966) (15,110) Other financing sources (uses) Proceeds from borrowing 57,066$ 24,917$ 25,724$ 31,332$ 24,916$ 31,444$ 24,340$ -$ 13,393$ 15,420$ Capitalized interest income 773 - - 355 - - 839 - 120 - Capitalized interest expense (773) - - (355) - - - - - - Proceeds sale property/other 40 - - - - - - - - - Reduction in long term debt (100) - - - - - - - - - Escrow funding (4,072) (12,718) (11,886) (6,626) (14,368) (15,590) (13,280) - - - Transfers in 8,259 9,762 6,020 7,032 6,529 8,975 5,927 11,019 5,727 5,839 Transfers (out)(9,572) (15,287) (15,062) (14,432) (10,528) (15,344) (14,794) (23,324) (6,184) (14,593) Total Other financing sources (uses)51,621 6,674 4,796 17,306 6,549 9,485 3,032 (12,305) 13,056 6,666 Net Changes in Fund Balance 45,677$ 3,774$ (2,582)$ (13,009)$ (8,149)$ 469$ (3,917)$ (14,815)$ 2,090$ (8,444)$ Debt Service as a percentage of noncapital expenditures 11.99% 14.40% 12.21% 11.87% 14.96% 12.58% 11.48% 9.93% 9.36% 13.29% Note: The largest own-source revenue is the poperty tax with a rate of 1.364% (for the city portion only) of Equalized Assessed Value (EAV) for the tax year 2010 . Ten months ended December 31, 2011 Source: City Finance department * * -157- CITY OF EVANSTON, ILLINOIS Equalized Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Levy Total Total Total Year Residential Farm Commercial Industrial Railroad Equalized Actual Tax Ended Property Property Property Property Property Assessed Value Value Rate 2001 1,105,269,184 16,895 459,256,602 50,985,114 311,382 1,615,839,177 4,847,517,531 1.628 2002 1,202,783,327 16,895 467,795,729 66,579,781 368,172 1,737,543,904 5,212,631,712 1.609 2003 1,221,970,442 16,895 435,093,531 69,669,560 397,456 1,727,147,884 5,181,443,652 1.698 2004 1,543,464,138 16,895 479,999,412 71,684,555 446,570 2,095,611,570 6,286,834,710 1.528 2005 1,680,183,692 16,895 500,330,397 61,756,603 465,435 2,242,753,022 6,728,259,066 1.491 2006 1,707,669,215 16,895 476,821,737 60,920,888 464,011 2,245,892,746 6,737,678,238 1.527 2007 2,149,123,958 16,895 560,536,782 62,154,048 508,346 2,772,340,029 8,317,020,087 1.283 2008 2,324,551,100 16,895 560,106,493 53,168,671 554,733 2,938,397,892 8,815,193,676 1.295 2009 2,564,394,619 15,956 615,808,511 125,104,411 665,872 3,305,989,369 9,917,968,107 1.204 2010 Not available Not available Not available Not available 829,769 3,041,884,087 9,125,652,261 1.364 Note: Source: Cook County Assessor's office Property is reassessed once every three years. Equalized Assessed value is approximately 1/3 of actual value. Tax rates are per $100 of Equalized assessed value. -158- CITY OF EVANSTON, ILLINOIS Principal Property Taxpayers Current year and Nine Years Ago 2010 EAV 2001 EAV Percentage Percentage Total of Total City Total of Total City Equalized Assessed Taxable Equalized Assessed Taxable Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV Grubb & Ellis 26,384,464$ 1 0.87%Golub & Company 21,168,471$ 1 1.24% Rotary International 22,171,027 2 0.70%Rotary International 16,515,288 2 0.97% Lowe Enterprises 21,378,083 3 0.65%Church & Chicago Ltd Partnership 11,937,901 3 0.70% Church Street Plaza 19,787,246 4 0.43%Evanston Plaza Freed 11,376,183 4 0.67% NNN Church Street Office Center 13,145,431 5 0.42%Albertson's (Jewel & Osco)11,029,194 5 0.64% Evanston Hotel Assoc.12,892,618 6 0.40%Lynn Minnici 10,122,537 6 0.59% Inland 12,171,067 7 0.38%The Orrington Hotel 9,608,768 7 0.56% Church & Chicago Limited Partnership 11,616,218 8 0.38%Presbyterian Homes 9,554,459 8 0.56% Northshore University Healthcare 11,572,829 9 0.36%1810 Sherman Avenue 9,443,781 9 0.55% Paradigm Tax Group 10,816,879 10 0.00%St. Francis Hospital 9,374,716 10 0.55% Total 161,935,862$ 5.32% Total 120,131,298$ 7.02% Total EAV 3,041,884,087$ Total EAV 1,710,663,113$ Source: Cook County -159- CITY OF EVANSTON, ILLINOIS Property Tax Levies and Collections Last Ten Years Tax Taxes Levied Collected Receipts Collections Total Collected to Date Levy for the Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2002 27,957,126 27,286,591 97.60% 254,154 27,540,745 98.51% 2003 29,813,787 28,565,408 95.81% 365,801 28,931,209 97.04% 2004 32,100,657 30,991,234 96.54% 412,246 31,403,480 97.83% 2005 33,423,311 32,550,464 97.39% 613,876 33,164,340 99.23% 2006 34,399,146 33,249,612 96.66% 437,287 33,686,899 97.93% 2007 35,550,694 34,061,461 95.81% 400,850 34,462,311 96.94% 2008 38,044,671 36,246,629 95.27% 358,214 36,604,843 96.22% 2009 39,779,364 38,018,159 95.57% 464,506 38,482,665 96.74% 2010 41,479,398 39,412,004 95.02% 764,463 40,176,467 96.86% 2011 43,397,590 See Note See Note See Note See Note See Note Note: Levy Year 2011 is collected beyond fiscal year end 2011 through 12/31/12 Source: City Finance department -160- CITY OF EVANSTON, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (2)Net Gross (3)Net Net General (1)General Debt Debt Net Debt to Debt to Obligation Fiscal Equalized Obligation Service Payable General Total Equalized Total Bonded Year Assessed Bonded Monies From Other Obligation Personal Assessed Personal Debt Ended Population Valuation Debt Available Revenues Debt Income Valuation Income Per Capita 2/28/2003 74,239 1,710,663,113 194,086,731 6,942,441 123,720,000 63,424,290 2,694,578,744 3.71% 2.35% 854.33 2/29/2004 74,239 1,737,543,904 191,073,334 6,592,437 114,445,000 70,035,897 2,694,578,744 4.03% 2.60% 943.38 2/28/2005 74,239 1,727,147,885 187,110,000 6,678,359 106,935,000 73,496,641 2,775,350,776 4.26% 2.65% 990.00 2/28/2006 74,239 2,095,611,570 195,875,000 6,551,304 110,212,500 79,111,196 2,902,967,617 3.78% 2.73% 1,065.63 2/28/2007 74,239 2,242,753,022 187,745,000 6,504,507 96,780,000 84,460,493 2,902,967,617 3.77% 2.91% 1,137.68 2/29/2008 74,239 2,245,892,746 181,750,000 6,146,567 81,455,000 94,148,433 2,902,967,617 4.19% 3.24% 1,268.18 2/28/2009 74,239 2,772,340,029 171,945,001 7,317,930 62,079,183 102,547,888 2,902,967,617 3.70% 3.53% 1,381.32 2/28/2010 74,239 2,938,397,892 149,315,000 5,989,400 46,882,320 96,443,280 2,902,967,617 3.28% 3.32% 1,299.09 2/28/2011 74,486 3,305,989,369 151,695,000 5,309,064 50,097,260 96,288,676 3,157,759,484 2.91% 3.05% 1,292.71 12/31/2011 74,486 3,041,884,087 155,855,000 2,629,020 47,111,060 106,114,920 3,197,311,550 3.49% 3.32% 1,424.63 Notes: (1) (2)Excludes limited purpose special service district bonds. (3) Source: Cook County and City Finance department These amounts include the general obligation bonds that are being repaid from the Water Fund, Solid Waste Fund, Sewer Fund, Motor Vehicle Parking System Fund, Howard Hartrey Tax Increment Tax District Fund, Washington National Tax Increment Tax District Fund, and Special Assessment fund. Equalized assessed values do not include tax increment financing district incremental equalized assessed values. -161- CITY OF EVANSTON, ILLINOIS Ratio of Outstanding Debt by Type Last Ten Fiscal Years Fiscal General Special General Water Total Percentage (1) Year Obligation Service District Obligation Revenue IEPA Primary of Personal Per Ended Bonds Bonds Capital Lease Bonds Bonds Loans Government Income Capita 2/28/2003 140,435,000 410,000 15,064 52,970,000 6,185,000 93,559,011 293,574,075 10.89% 3,954 2/29/2004 141,565,000 280,000 - 49,175,000 5,380,000 99,653,404 296,053,404 10.99% 3,988 2/28/2005 143,455,000 3,590,000 - 43,655,000 4,575,000 102,200,011 297,475,011 10.72% 4,007 2/28/2006 158,490,000 3,335,000 - 37,385,000 3,710,000 101,400,675 304,320,675 10.48% 4,099 2/28/2007 110,920,000 3,070,000 - 76,825,000 3,240,000 99,490,921 293,545,921 10.11% 3,954 2/29/2008 115,220,000 2,785,000 - 66,530,000 2,755,000 103,410,887 290,700,887 10.01% 3,916 2/28/2009 115,961,136 2,165,000 1,035,370 55,983,865 2,245,000 101,775,223 279,165,594 9.62% 3,760 2/28/2010 109,078,880 2,155,000 708,552 40,236,120 1,720,000 95,370,544 249,269,096 8.59% 3,358 2/28/2011 115,482,439 1,840,000 363,759 36,212,561 1,170,000 87,059,150 242,127,909 7.67% 3,251 12/31/2011 120,739,206 1,840,000 - 35,115,794 1,170,000 79,081,272 237,946,272 7.44% 3,195 Note: (1) See the Schedule of Demographics and Economic Statistics on page 166 for personal income and population data. Details regarding the city's outstanding debt can be found in the notes to the financial statements. Governmental Activities Business- Type Activities -162- Percentage of Debt City of Applicable Evanston's Total to City of Share of Debt Outstanding Evanston (1) Direct debt - bonds, notes, and contracts outstanding 122,579,206$ 100.00% 122,579,206$ Other bonded debt County of Cook 3,369,965,000$ 1.78% 60,140,664$ Cook County Forest Preserve District 97,810,000 1.78% 1,745,525 Metropolitan Water Reclamation District 2,493,150,090 1.82% 45,422,314 High School District 202 16,276,098 90.42% 14,716,191 School District 65 59,346,000 90.42% 53,658,259 Skokie Park District 7,960,000 0.76% 60,346 Total Overlapping Debt 6,044,507,188$ 175,743,300$ Total Direct and Overlapping Debt 6,167,086,394$ 298,322,506$ Source: Cook County CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities As of December 31, 2011 -163- CITY OF EVANSTON, ILLINOIS Pledged-Revenue Coverage Last Ten Fiscal Years Water Revenue Bonds Utility Less: Net Fiscal Year Service Operating Available Debt Service Ended Charges Expenses Resources Principal Interest Coverage 2/28/2003 13,687,288 9,347,238 4,340,050 2,200,000 343,795 1.71 2/29/2004 13,583,515 7,056,290 6,527,225 805,000 235,913 6.27 2/28/2005 13,338,642 6,395,231 6,943,411 805,000 206,575 6.86 2/28/2006 14,380,966 6,705,865 7,675,101 865,000 177,355 7.36 2/28/2007 13,196,942 6,900,063 6,296,879 470,000 145,088 10.24 2/29/2008 13,787,014 7,138,056 6,648,959 485,000 128,713 10.83 2/28/2009 13,878,833 7,866,909 6,011,924 510,000 110,913 9.68 2/28/2010 12,742,603 7,756,760 4,985,843 525,000 91,556 8.09 2/28/2011 13,752,681 7,191,577 6,561,104 550,000 71,269 10.56 12/31/2011 12,368,533 6,146,652 6,221,881 - 24,672 252.18 Note: Ten months ended December 31, 2011 Source: Various City departments Detail regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expense. * * -164- CITY OF EVANSTON, ILLINOIS Demographic and Economic Statistics Last Ten Years Per Education Total Capita % of population Calendar Personal Personal Median with HS Diploma School Unemployment Year Population Income Income Age or Higher Enrollment Rate 2002 74,239 2,497,771,155$ 33,645$ 32.5 91.3% 10,889.0 5.0% 2003 74,239 2,694,578,744 36,296 32.5 91.3%9,766.0 5.4% 2004 74,239 2,694,578,744 36,296 32.5 91.3%9,849.0 5.0% 2005 74,239 2,775,350,776 37,384 32.5 94.0%9,740.0 5.0% 2006 74,239 2,902,967,617 39,103 32.5 94.0%9,550.0 4.5% 2007 74,239 2,902,967,617 39,103 32.5 94.0%9,550.0 4.4% 2008 74,239 2,902,967,617 39,103 32.5 94.0%9,550.0 4.6% 2009 74,239 2,902,967,617 39,103 32.5 94.0%9,550.0 4.7% 2010 74,486 3,157,759,484 42,394 34.3 94.0%9,550.0 7.9% 2011 74,486 3,197,311,550 42,925 34.3 94.0% 11,369.0 7.3% Source: Various Government agencies -165- CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Ten Years Ago Employer Employees %Rank Employer Employees %Rank Northwestern University 9,471 48% 1 Northwestern University 5,325 36% 1 Northshore University Healthcare 3,727 19% 2 Evanston Northwestern Healthcare 3,780 25% 2 Evanston School District 65 1,599 8% 3 St. Francis Hospital 1,649 11% 3 St. Francis Hospital 1,272 7% 4 City of Evanston 1,000 7% 4 City of Evanston 918 5% 5 Evanston School District 65 700 5% 5 Presbyterian Homes/McGaw Care 602 3% 6 Evanston Township High School 566 4% 6 Rotary International 520 3% 7 Presbyterian Homes/McGaw Care 533 4% 7 School district 202 525 3% 8 Shure, Inc. 510 3% 8 C.E. Neihoff & Co. 480 2% 9 Jewel / Osco Food Stores 455 3% 9 Mather Lifeways 450 2% 10 Mather Lifeways 430 3% 10 Total 19,564 Orrington Hotel 14,948 Source: City Economic Development Division 2011 2001 -166- CITY OF EVANSTON, ILLINOIS Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year Ended 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 Function/Program General Government City Clerk 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 City Manager's Office 7.55 7.25 7.25 7.25 7.25 13.70 31.53 27.70 22.00 8.00 MBIS / IT 21.50 21.80 22.80 24.80 23.80 25.50 - - 13.00 12.00 Legal 6.00 6.00 7.00 7.00 7.00 7.00 7.00 6.00 7.00 7.00 Human Resources 8.00 7.00 7.00 7.00 8.00 8.00 8.00 8.00 5.00 5.00 Finance 26.00 24.50 24.50 26.50 25.50 26.50 29.50 28.50 19.50 19.00 Parking Systems - - - - - - - - 13.00 12.00 Facilities Management 23.00 23.00 23.10 21.10 21.20 - - - - 19.00 Community Development 36.00 34.00 36.00 36.00 36.00 36.00 35.00 33.00 28.00 27.00 Police 212.30 213.80 217.50 219.50 221.75 220.75 220.75 218.50 219.00 222.00 Fire 109.00 109.00 109.00 110.00 111.00 111.00 112.00 111.00 107.00 108.00 Human & Health Services 41.73 39.54 39.30 39.30 40.15 29.68 24.90 26.40 15.90 17.00 Public Works 90.00 90.00 90.25 91.25 90.25 108.45 105.45 83.25 58.80 49.00 Human Relations 4.00 4.00 4.00 4.00 4.00 - - - - Library 67.17 66.20 66.65 67.18 67.19 66.69 69.35 67.50 52.00 52.00 Recreation, Parks & Forestry 122.25 113.94 119.20 121.30 119.90 115.90 112.75 131.75 132.00 105.00 Total General Fund 777.50 762.03 775.55 784.18 784.99 771.17 758.23 743.60 694.20 665.00 Neighborhood Stabilization Program - - - - - - - - 1.00 1.00 Emergency Telephone System 3.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 CDBG 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Economic Development Fund 1.45 1.45 1.45 1.45 1.45 1.30 2.30 2.30 5.00 6.00 Downtown II TIF Fund - - - - 1.00 - - - - Capital Improvements Fund - - - - - - - - 1.00 Maple Ave. Garage - - - 1.00 1.00 1.00 1.00 - - Parking Fund 13.00 13.00 13.00 14.00 14.50 14.50 14.50 15.50 14.00 15.00 Water 44.00 44.00 43.00 43.00 43.00 43.00 43.00 43.00 42.00 41.00 Sewer 14.00 14.00 14.00 13.50 14.00 14.00 14.00 14.00 12.00 11.00 Solid Waste - - - - - - - - - 6.00 Fleet Services 17.00 17.00 17.00 17.00 17.00 15.00 15.00 15.00 11.00 12.00 Insurance Fund 2.00 1.30 1.30 1.30 1.30 1.00 2.00 2.00 3.00 4.00 Total Other Funds 96.45 96.75 95.75 97.25 99.25 95.80 97.80 98.80 95.00 103.00 Total All Funds 873.95 858.78 871.30 881.43 884.24 866.97 856.03 842.40 789.20 768.00 Source: City of Evanston HR Division -167- CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 City of Evanston 1.628 1.610 1.698 1.528 1.491 1.527 1.283 1.295 1.204 1.365 Consolidated Elections 0.032 - 0.029 - 0.014 - 0.012 - 0.021 - Cook County 0.746 0.690 0.630 0.593 0.533 0.500 0.446 0.415 0.394 0.423 Cook County Forest Preserve District 0.067 0.061 0.059 0.060 0.060 0.057 0.053 0.051 0.049 0.051 Suburban T.B. Sanitarium 0.007 0.006 0.004 0.001 0.005 0.005 - - - - Metropolitan Water Reclamation District 0.401 0.371 0.361 0.347 0.315 0.284 0.263 0.252 0.261 0.274 North Shore Mosquito Abatement District 0.010 0.009 0.009 0.008 0.008 0.009 0.008 0.008 0.008 0.009 Evanston Township 0.064 0.062 0.065 0.056 0.055 0.058 0.050 0.050 0.042 0.046 Community College 535 0.186 0.179 0.186 0.161 0.158 0.166 0.141 0.140 0.140 0.160 School District 202 2.469 2.349 2.444 2.078 2.023 2.099 1.750 1.722 1.616 1.819 School District 65 3.516 3.343 3.475 2.978 2.890 3.045 2.535 2.552 2.401 2.655 Total tax rate for property not in park district or special service district 9.126 8.680 8.960 7.810 7.552 7.750 6.541 6.485 6.136 6.802 Percent of total tax rate levied by City of Evanston 17.8% 18.5% 19.0% 19.6% 19.7% 19.7% 19.6% 20.0% 19.6% 20.1% Source: Cook County Assessor's office Government Unit -168- CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (in 100 cubic feet) Fiscal Year Ended 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 Type of Customer Residential 2,734,202 2,639,717 2,506,887 2,720,807 2,388,360 2,375,942 2,260,284 2,174,255 2,187,244 1,804,433 Industrial 37,076 36,015 22,010 20,096 16,307 16,579 15,722 13,624 14,195 11,552 Commercial 1,395,576 1,415,895 1,318,236 1,267,657 1,278,334 1,240,591 1,193,241 1,109,556 1,153,949 928,621 Government 112,007 90,908 86,096 109,121 96,777 100,278 89,420 69,229 75,308 50,129 Total 4,278,861 4,182,535 3,933,229 4,117,681 3,779,778 3,733,390 3,558,667 3,366,664 3,430,696 2,794,735 Total direct rate per 100 cubic feet 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.52$ 1.52$ 1.52$ 1.52$ 1.52$ Source: City Water department -169- CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years Fiscal Year Ended 2/28/2003 2/29/2004 2/28/2005 2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 Type of Customer Evanston residents/businesses 6,711,004$ 6,665,158$ 6,559,026$ 6,706,644$ 5,804,517$ 6,012,643$ 5,430,019$ 5,396,739$ 5,377,297$ 4,719,084$ Village of Skokie 3,011,018 2,959,732 2,802,720 3,018,734 2,891,834 3,158,396 2,689,304 2,676,163 2,885,096 2,304,066 Northwest Water Commission 3,434,685 3,367,253 3,377,407 3,750,200 3,497,989 3,620,878 4,820,074 4,506,066 4,781,645 3,710,581 Total $13,156,707 $12,992,143 $12,739,153 $13,475,578 $12,194,340 12,791,917$ 12,939,397$ 12,578,968$ 13,044,038$ 10,733,731$ Source: City Water department -170- CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years Calendar Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Function/Program Police Violent Offenses 314 293 266 226 224 282 299 255 214 180 Property Offenses 4,122 3,318 3,145 2,965 2,942 2,825 2,739 2,412 2,119 2,144 911 Calls Received 55,125 55,383 56,650 56,650 55,795 59,135 56,717 52,198 35,991 51,969 Fire Emergency responses 8,003 8,106 7,624 8,135 8,173 8,517 9,134 8,566 8,917 9,063 Fires extinguished 218 225 199 287 220 192 185 154 157 157 Inspections 3,071 2,664 2,194 1,496 1,320 1,050 1,810 709 680 620 Other Public Works Street resurfacing (estimated miles)3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.4 3.4 Parks and Recreation Athletic field usage (hours)unavailable unavailable unavailable unavailable 15,561 15,165 17,121 16,185 18,966 20,075 Picnic permits issued unavailable unavailable unavailable unavailable 319 373 403 431 460 437 Library Volumes in collection 477,768 491,064 520,458 486,031 495,575 458,017 502,019 502,019 471,262 436,382 Total volumes borrowed 887,773 868,837 880,561 893,841 897,141 867,743 945,952 945,952 951,667 891,769 Water New connections 47 70 59 74 104 61 57 28 29 16 Water main breaks 65 41 45 78 48 36 52 52 38 28 Average daily consumption (millions of gallons)36.22 37.74 37.31 41.44 41.41 42.91 40.09 39.41 38.91 38.39 Peak daily consumption (millions of gallons)75.50 73.17 60.98 80.46 66.49 66.00 65.40 58.94 57.02 65.95 Note: Indicators are not available for general government functions Source: Various City departments -171- CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years Calendar Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Function/Program Police Number of Stations 1 1 1 1 1 1 1 1 1 1 Budgeted Sworn Officers 161 161 161 161 162 162 165 165 164 164 Fire Stations 5 5 5 5 5 5 5 5 5 5 Other Public Works Streets (miles)147 147 147 147 147 147 147 147 147 147 Streetlights 5,641 5,641 5,641 5,641 5,641 5,641 5,641 5,641 5,641 5,641 Parks and Recreation Acreage 290 290 290 290 290 290 290 290 290 290 Playgrounds 51 51 51 51 51 51 51 51 51 51 Baseball/softball diamonds 18 18 18 18 18 18 18 18 18 18 Soccer/football fields 27 27 27 27 27 27 27 27 27 27 Community centers 5 5 5 5 5 5 5 5 5 5 Water Water mains (miles)159 159 159 159 159 157 157 157 157 157 Fire hydrants 1347 1347 1347 1347 1347 1370 1370 1399 1399 1399 Storage capacity (millions of gallons)22 22 22 22 22 22 22 22 22 22 Note: No capital asset indicators are available for the general government or library function Source: Various City departments -172- TAX INCREMENT FINANCING DISTRICT REQUIREMENTS -173-