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HomeMy WebLinkAbout2010-2011 Annual Comprehensive Financial Report CITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED FEBRUARY 28, 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 26 Statement of Activities 28 Governmental Funds Balance Sheet 30 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32 Proprietary Funds Statement of Net Assets 33 Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 35 Proprietary Funds Statement of Cash Flows 36 Fiduciary Funds - Statement of Net Assets 38 Fiduciary Funds - Pension Trust Funds - Statement of Changes in Plan Net Assets 39 Notes to the Financial Statements Index for Notes to the Financial Statements 40 Notes to the Financial Statements 43 REQUIRED SUPPLEMENTARY INFORMATION Firefighters' Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund - Schedules of Funding Progress and Post Employment Benefits 100 Firefighters' and Police Pension Funds - Schedules of Employer Contribution 101 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)102 Notes to the Required Supplementary Information Digest of Changes - IMRF 103 Conversion from GAAP basis to Budgetary basis 103 INTRODUCTORY SECTION FINANCIAL SECTION i CITY OF EVANSTON, ILLINOIS Table of Contents PAGE GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 107 Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 112 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 117 Schedule of Expenditures - Budget and Actual (Budgetary Basis)123 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)125 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)126 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)127 Neighborhood Improvement Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)128 Affordable Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)129 HOME Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)130 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)131 Schedule of Expenditures - Budget and Actual (Budgetary Basis)132 Community Development Loan Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)134 Neighborhood Stabilization Program 2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)135 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)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 145 Operation and Maintenance Account - Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual 146 Operation and Maintenance Account - Schedule of Operating Revenues Budget and Actual 147 INTERNAL SERVICE FUNDS All Funds Combining Statement of Net Assets 149 Combining Statement of Revenues, Expenses, and Changes in Net Assets 150 Combining Statement of Cash Flows 151 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) iii CITY OF EVANSTON, ILLINOIS Table of Contents PAGE 155 156 157 158 Equalized Assessed Value and Actual Value of Taxable Property 159 Principal Property Taxpayers 160 Property Tax Levies and Collections (City) - Last Ten Levy Years 161 Ratio of General Bonded Debt Outstanding 162 Ratio of Outstanding Debt by Type 163 Direct and Overlapping Governmental Activities 164 Pledged - Revenue Coverage 165 Demographic and Economic Statistics - Last Ten Years 166 Principal Employers 167 Full-Time Equivalent City Government Employees by Function 168 Property Tax Rates per $100 - Direct and Overlapping Governments 169 Water Sold by Type of Customer (in 100 cubic feet)170 Water Sold by Major Customers 171 Operating Indicators by Function/Program 172 Capital Assets Statistics by Function 173 Independent Accountants' Report on Compliance - Tax Increment Financing Districts 175 TAX INCREMENT FINANCING DISTRICT REQUIREMENTS Changes in Fund Balances - Governmental Funds STATISTICAL SECTION (UNAUDITED) Net Assets by Component Changes in Net Assets Fund Balances - Governmental Funds iv INTRODUCTORY SECTION -1- CITY OF EVANSTON, ILLINOIS Principal Officials February 28, 2011 Judy Fiske Delores A. Holmes Peter Braithwaite Mark Tendam Melissa A. Wynne Jane Grover Donald N. Wilson Ann Rainey Collen Burrus ADMINISTRATIVE SERVICES DEPARTMENT Joellen Earl, Administrative Services Director Lou Gergits, Interim Finance Division Manager Hitesh Desai, Accounting Manager LEGISLATIVE CITY COUNCIL Elizabeth B. Tishdal, Mayor EXECUTIVE Wally Bobkiewicz, City Manager Marty Lyons, Assistant City Manager / Treasurer -2- MAYOR CITY COUNCIL UTILITIES PARKS, RECREATION & COMMUNITY SERVICES ADVISORY BOARDS AND COMMISSIONS FIRE POLICE CITY MANAGER COMMUNITY AND ECONOMIC DEVELOPMENT ADMINISTRATIVE SERVICES HEALTH PUBLIC WORKS LAW LIBRARY CITY OF EVANSTON ORGANIZATION CHART RESIDENTS CITY CLERK -3- -4- -5- -6- -7- -8- -9- -10- -11- -12- -13- FINANCIAL SECTION -14- INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS -15- -16- -17- FINANCIAL HIGHLIGHTS A. B. C. D. USING THIS ANNUAL REPORT REPORTING THE CITY AS A WHOLE Government-wide Financial Statements The financial statement's focus is on both the City as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison and enhance the City's accountability. The City's financial reporting includes the funds of the City (primary government) and additionally, organizations for which the City is accountable (component units - the Township). The Evanston Township Board of Trustees are the same individuals as the City Council members. The Township is blended into the primary government for financial reporting purposes. 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 governmental activities revenue increased by $1,078,534 or 0.8% from the prior year. The expenses increased by $392,096 or 0.3%. The business-type activities revenue increased by $344,582 or 1.1%. The expenses decreased by $831,214 or 3.1% from the prior year. The total cost of all City programs decreased by $439,118 or 0.3%. MANAGEMENT'S DISCUSSION AND ANALYSIS FEBRUARY 28, 2011 The City of Evanston (the City) discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City's financial activity, (3) identify changes in the City's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget),and (5) identify individual fund issues or concerns. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on page 4 of this report. The City's net assets increased by $15,704,299 or 5.4% from the prior fiscal year reported . The governmental net assets increased by $8,386,484 or 12.3% from prior year and the business-type activities net assets increased by $7,317,815 or 3.3% from prior year. (Unaudited) -18- The government-wide financial statements are presented on pages 26 - 29 of this report. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements The basic government fund financial statements are presented on pages 30 - 31 of this report. 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. 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. 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 nonmajor 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 year. They are useful in evaluating annual 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. 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 year. All current year 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. (Unaudited) -19- 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 33 - 37 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. Fiduciary fund financial statements report similarly to proprietary funds. The basic fiduciary fund financial statements are presented on pages 38 - 39 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 40 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 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 99 - 103 of this report. Major funds and component units are reported in the basic financial statements, as discussed. Combining and individual statements and schedules for nonmajor and internal service funds are presented in a subsequent section of this report beginning on page 107. Additional information on capital assets and long-term debt can be found on page 63 and 72 respectively. (Unaudited) -20- Financial Analysis of the City as a Whole Governmental Activities Business-type Activities Total Primary Government 2011 2010 2011 2010 2011 2010 Current and Other Assets 114,729,694$ 107,966,203$ 28,480,227$ 32,307,260$ 143,209,921 140,273,463 Capital Assets 164,394,767 157,591,213 328,457,846 331,797,574 492,852,613 489,388,787 Total Assets 279,124,461 265,557,416 356,938,073 364,104,834 636,062,534 629,662,250 Long-Term Liabilities 160,885,656 159,018,504 126,384,704 140,231,417 287,270,360 299,249,921 Other Liabilities 41,496,813 38,183,404 2,626,600 3,264,463 44,123,413 41,447,867 Total Liabilities 202,382,469 197,201,908 129,011,304 143,495,880 331,393,773 340,697,788 Net Assets Investment in Capital assets, net of Debt 49,483,230 41,109,175 207,161,600 192,920,612 256,644,830 234,029,787 Restricted 23,186,893 23,645,043 1,624,016 3,378,465 24,810,909 27,023,508 Unrestricted 4,071,869 3,601,290 19,141,153 24,309,877 23,213,022 27,911,167 Total Net Assets 76,741,992$ 68,355,508$ 227,926,769$ 220,608,954$ 304,668,761$ 288,964,462$ Governmental Funds: The governmental activities experienced a net assets balance increase of $8,386,484. This was primarily due to the restatement of the Early Retirement Incentive liability from the current fiscal year to the previous fiscal year ending February 28, 2010 in the amount of $6,798,305. In addition, there was a modest increase of $1,078,534 in the Governmental activities revenues. The City's combined net assets increased by $15,704,299 from prior year. This is an increase from $288,964,462 to $304,668,761. STATEMENT OF NET ASSETS Business Funds: The business-type activities fund balance experienced an increase in net assets of $7,317,815, primarily due to a surplus in the Water & Sewer Funds. The City's total revenues increased by $1,423,116 or 0.9%. The City's total expenses for all programs decreased by $439,118, or 0.3%. Governmental activity total revenue increased by $1,078,534 in the current fiscal year despite a reduction in Property tax revenues. This reduction was offset by increases in grants and other taxes. Net expenses in the governmental activities increased only by $392,096 compared to previous fiscal year. This is primarily due to an increase in General Management and Public Safety expenses offset by significant decreases in Public Works and Interest costs. The revenue for business-type activities increased slightly from $32,796,034 to $33,140,616 or $344,582. In summary, overall revenues increased by $1,423,116 from $167,707,535 to $169,130,651. (Unaudited) -21- Governmental Activities Business-type Activities Total Primary Government 2011 2010 2011 2010 2011 2010 Revenue Program Revenues: Charges for services 27,437,741$ 25,935,527$ 33,118,200$ 32,709,014$ 60,555,941$ 58,644,541$ Operating grants and contributions 9,851,363 5,897,899 - - 9,851,363 5,897,899 Capital grants and contributions 8,026,115 4,037,167 - - 8,026,115 4,037,167 General Revenues: Sales taxes 15,577,087 14,880,164 - - 15,577,087 14,880,164 Property taxes 47,039,986 58,839,049 - - 47,039,986 58,839,049 Utility taxes 7,872,181 7,856,422 - - 7,872,181 7,856,422 Other taxes 19,628,769 16,744,138 - - 19,628,769 16,744,138 Investment income 556,793 721,135 22,416 87,020 579,209 808,155 Total Revenue 135,990,035 134,911,501 33,140,616 32,796,034 169,130,651 167,707,535 Expenses General management and support 17,517,168 19,772,716 - - 17,517,168 19,772,716 Public safety 53,226,114 50,488,218 - - 53,226,114 50,488,218 Public works 15,625,868 18,509,233 - - 15,625,868 18,509,233 Health and human resources development 4,540,954 4,760,324 - - 4,540,954 4,760,324 Recreation and cultural opportunities 20,142,331 20,066,105 - - 20,142,331 20,066,105 Housing and economic development 10,857,192 9,120,080 - - 10,857,192 9,120,080 Interest 5,594,828 4,395,683 - - 5,594,828 4,395,683 Water - - 8,712,801 9,133,593 8,712,801 9,133,593 Sewer - - 8,784,230 8,778,917 8,784,230 8,778,917 Motor vehicle parking system - - 8,424,866 8,840,601 8,424,866 8,840,601 Total Expense 127,504,455 127,112,359 25,921,897 26,753,111 153,426,352 153,865,470 Increase in net assets before transfers 8,485,580 7,799,142 7,218,719 6,042,923 15,704,299 13,842,065 Transfers (99,096) (13,700,289) 99,096 13,700,289 - - Increase/(Decrease) in Net Assets 8,386,484 (5,901,147) 7,317,815 19,743,212 15,704,299 13,842,065 Restatement - ERI - (6,798,305) - (1,106,701) - (7,905,006) Net Assets - Beginning 68,355,508 81,054,960 220,608,954 201,972,443 288,964,462 283,027,403 Net Assets - Ending 76,741,992$ 68,355,508$ 227,926,769$ 220,608,954$ 304,668,761$ 288,964,462$ Financial Analysis of the City's Funds Governmental Funds The following table provides a summary of the City's changes in net assets: STATEMENT OF CHANGES IN NET ASSETS 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 year in comparison with upcoming financing requirements. Governmental funds reported fund balances of $71,313,754 as a year-end total which includes $21,644,374 unreserved/undesignated, $18,936,379 unreserved/designated and $30,733,001 reserved. The reserved fund balance consists of amounts required to be set aside by external authorities as well as capital (unspendable) assets. (Unaudited) -22- Proprietary Funds 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 increased by $463,570, from $5,441,774 to $5,905,344. For fiscal year 2010-11 funding for capital projects was roughly equal to total capital outlays and interfund transfers to other funds in order to maintain a fund balance necessary to begin each capital construction season. The City's combined internal service funds net assets increased by $1,101,447 from $1,673,410 as of February 28, 2010 to $2,774,857 as of February 28, 2011. Fleet Fund reported increase in net assets primarily due to higher charges for services. The net deficit in the Insurance Fund went up by $809,293 because of higher claims settlement and recording of potential claim liabilities. The proprietary fund statements share the same focus as the government-wide statements,reporting both short-term and long-term information about financial status. Internal Service Funds The main proprietary funds operated by the City are the Water, Sewer, and Parking Funds. The Water and Sewer funds have a combined increase of $6,363,755 in the net assets because of increased revenues and reduced operating expenses and interest expense. The Parking fund added $954,060 to the net assets during the year primarily due to the reduced interest expense. 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 and therefore, large debt payments will be required in the future. Combined non-major fund balances totaled $43,404,658,a slight decrease of $189,951 from prior year of $43,594,609. Non-major funds with surpluses for the fiscal year include Economic Development, Library Endowment, Neighborhood Improvement, Affordable Housing, Township, Washington National TIF, West Evanston TIF and Howard Hartrey TIF. Non-major funds with deficits for the year include the Motor Fuel, Emergency Telephone System, SSD#4, SSD#5, Southwest TIF, Howard Ridge TIF, General obligation debt and Special Assessment Capital Project Fund. Combined Non-Major Governmental Funds 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 increase in assets and liabilities of $2,111,861 from the last fiscal year. 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 slightly increased by $1,816,203 primarily due to a one time revenue of $1,900,000 from the land sale to the Chiravalle School property. Excess of expenditure over revenues in the amount of $10,496,858 was offset by bond proceeds and interfunds transfers to the General Fund.Revenues that came in better than budgeted included the Real Estate Transfer tax, Building Permits, Motor Fuel tax and Parking tax. Conversely, Utility tax, Property tax and Vehicle License revenues were slightly lower than budgeted. Administrative Services, Health, Police and Fire department expenses were over budget for the year and the City Manager's Office, Public Works, Community Development, and Parks Recreation and Community Services were all under budget for the year. (Unaudited) -23- General Fund Budgetary Highlights Capital Assets Long-Term Debt Bond Ratings Economic Factors 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. 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 February 28, 2011, was $492,852,613. The governmental funds capital assets increased by $6,803,554 while business type capital assets decreased by $3,339,728. Overall, capital assets increased by 1% for the City as a whole. The Governmental funds reported sizeable increase in infrastructure assets primarily in streets, parks and alleys. In business funds, Water reported a modest increase while Parking and Sewer Funds reported a decrease in net capital assets. Readers desiring more detailed information on capital asset activity should see Note 6 in the Notes to the Financial Statements. At the end of the fiscal year, the City had total general obligation bonded debt outstanding of $153,535,000, of which $36,212,561 was for business type activities to be paid for by the City's Parking, Water and Sewer Funds. The City's G.O. debt service principal payments for 2010-11 totaled $12,435,000 of which, $6,472,660 was abated. During the current year, the City issued $14,500,000 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 see Note 9 in the Notes to the Financial Statements. 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. Evanston is a diverse community consisting primarily of residential homes, several non profit 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, Real Estate Transfer Tax and Building Permits came in a little higher than budgeted revenues. Most other revenues remained relatively flat with few exceptions. Total actual revenues for the General Fund were $83,624,972 while total expenditures were $93,875,618. Actual revenues in the General Fund came in higher than budget by $2,160,472 primarily due to sale of land for $1,900,000. Total expenditures in the General Fund were less than budgeted amounts by $1,227,024 mainly due to continuous restructuring of departments and other cost saving measures in various operating divisions. The actual net deficiency in revenues under expenditures of $10,250,646 was offset by $5,409,384 in transfers from other funds and bond proceeds of $6,903,677. The unemployment rate in Evanston has increased at a similar pace as many other cities in the State, however the City maintained it's distance between state and federal employment levels. The primary employers in the City include Northwestern University, two hospitals, the local high school, and elementary school district, Rotary International, several not-for-profit organizations, and numerous retail businesses and restaurants.Due to the high number of non profit organizations which make a large portion of Evanston's workforce, the City has been somewhat insulated from the economic downturn in employment areas. (Unaudited) -24- BASIC FINANCIAL STATEMENTS -25- CITY OF EVANSTON, ILLINOIS Statement of Net Assets Governmental Business-type Activities Activities Total Cash and equivalents 44,719,071$ 17,860,264$ 62,579,335$ Investments 2,696,637 - 2,696,637 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 48,239,950 - 48,239,950 Accounts - 4,438,174 4,438,174 Notes 6,002,308 - 6,002,308 Special assessments 862,381 - 862,381 Accrued interest 1,656 - 1,656 Other 3,087,717 61,308 3,149,025 Due from other governments 8,011,185 - 8,011,185 Internal balances (896,266) 896,266 - Inventories 396,460 762,361 1,158,821 Restricted assets Cash and equivalents and investments - 4,212,854 4,212,854 Prepaid items 1,172,980 - 1,172,980 Other assets 25,615 249,000 274,615 Property held for resale 410,000 - 410,000 Capital assets Capital assets not being depreciated 27,565,632 4,429,912 31,995,544 Capital assets (net of accumulated depreciation)136,829,135 324,027,934 460,857,069 Total Assets 279,124,461 356,938,073 636,062,534 February 28, 2011 Primary Government Assets The accompanying notes are an integral part of this statement. -26- Governmental Business-type Activities Activities Total Vouchers payable 3,817,638$ 246,200$ 4,063,838$ Accrued payroll 3,522,131 - 3,522,131 Interest payable 1,133,800 264,909 1,398,709 Other payables 102,053 - 102,053 Due to other governments 1,395 - 1,395 Due to pension funds 6,111,870 - 6,111,870 Payable from restricted assets Vouchers payable - 1,227,077 1,227,077 Interest payable - 887,740 887,740 Deferred revenues 26,807,926 674 26,808,600 Noncurrent liabilities Payable from restricted assets - due within one year - 11,090,988 11,090,988 Due within one year 15,766,952 3,262,998 19,029,950 Due in more than one year 145,118,704 112,030,718 257,149,422 Total Liabilities 202,382,469 129,011,304 331,393,773 Investment in capital assets, net of related debt 49,483,230 207,161,600 256,644,830 Restricted Culture and recreation 1,199,379 - 1,199,379 Capital improvements - 400,000 400,000 Debt service 21,192,017 1,224,016 22,416,033 Other 795,497 - 795,497 Unrestricted 4,071,869 19,141,153 23,213,022 Total Net Assets 76,741,992$ 227,926,769$ 304,668,761$ Primary Government Liabilities Net Assets -27- 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 17,517,168$ 12,795,815$ -$ Public safety 53,226,114 1,145,103 51,359 Public works 15,625,868 634,811 1,949,158 Health and human resource development 4,540,954 1,539,405 1,010,301 Recreation and cultural opportunities 20,142,331 5,265,054 - Housing and economic development 10,857,192 6,057,553 6,840,545 Interest 5,594,828 - - Total governmental activities 127,504,455 27,437,741 9,851,363 Business-type activities: Water 8,712,801 13,737,882 - Sewer 8,784,230 13,393,286 - Motor vehicle parking system 8,424,866 5,987,032 - Total business-type activities 25,921,897 33,118,200 - Total 153,426,352$ 60,555,941$ 9,851,363$ 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, as restated Net assets - ending Year ended February 28, 2011 The accompanying notes are an integral part of this statement. -28- Net (Expense) Revenue and Changes in Net Assets Capital Grants and Governmental Business-type Contributions Activities Activities Total -$ (4,721,353)$ -$ (4,721,353)$ - (52,029,652) - (52,029,652) 6,149,395 (6,892,504) - (6,892,504) - (1,991,248) - (1,991,248) - (14,877,277) - (14,877,277) 1,876,720 3,917,626 - 3,917,626 - (5,594,828) - (5,594,828) 8,026,115 (82,189,236) - (82,189,236) - - 5,025,081 5,025,081 - - 4,609,056 4,609,056 - - (2,437,834) (2,437,834) - - 7,196,303 7,196,303 8,026,115$ (82,189,236) 7,196,303 (74,992,933) 47,039,986 - 47,039,986 7,872,454 - 7,872,454 1,473,999 - 1,473,999 15,577,087 - 15,577,087 5,808,360 - 5,808,360 7,872,181 - 7,872,181 4,473,956 - 4,473,956 556,793 22,416 579,209 (99,096) 99,096 - 90,575,720 121,512 90,697,232 8,386,484 7,317,815 15,704,299 68,355,508 220,608,954 288,964,462 76,741,992$ 227,926,769$ 304,668,761$ -29- CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet Employer Nonmajor Total Capital Pension Governmental Governmental General Improvements Contribution Funds Funds Cash and equivalents 10,303,331$ 7,890,293$ -$ 25,098,752$ 43,292,376$ Investments - - - 2,696,637 2,696,637 Receivables Property taxes (net of allowance) 16,118,287 - 13,325,794 18,795,869 48,239,950 Notes (net of allowance)- - - 6,002,308 6,002,308 Special assessments - - - 862,381 862,381 Accrued interest - - - 1,656 1,656 Other 1,983,145 - - 478,825 2,461,970 Property held for resale - - - 410,000 410,000 Prepaid items - - - 1,012 1,012 Due from other governments 7,112,895 152,918 163,000 582,372 8,011,185 Due from other funds 545,268 - - 300,426 845,694 Other assets 25,615 - - - 25,615 Total Assets 36,088,541$ 8,043,211$ 13,488,794$ 55,230,238$ 112,850,784$ Liabilities Vouchers payable 1,869,559$ 980,417$ -$ 566,082$ 3,416,058$ Accrued payroll 3,522,131 - - - 3,522,131 Compensated absences payable 29,156 - - - 29,156 Other 97,425 - - 4,628 102,053 Due to other governments - - - 1,395 1,395 Due to other funds 170,443 1,157,450 6,111,700 218,718 7,658,311 Deferred revenues 8,396,075 - 7,377,094 11,034,757 26,807,926 Total Liabilities 14,084,789 2,137,867 13,488,794 11,825,580 41,537,030 Fund Balances Reserved 1,994,876 - - 28,328,125 30,323,001 Reserved for HUD Approved Projects - - - 410,000 410,000 Unreserved designated General fund 5,426,913 - - - 5,426,913 Capital improvement funds - 5,905,344 - - 5,905,344 Capital project funds - - - 3,759,954 3,759,954 Special revenue funds - - - 3,844,168 3,844,168 Unreserved undesignated Special revenue funds - - - 7,062,411 7,062,411 General fund 14,581,963 - - - 14,581,963 Total Fund Balances 22,003,752 5,905,344 - 43,404,658 71,313,754 Total Liabilities and Fund Balances 36,088,541$ 8,043,211$ 13,488,794$ 55,230,238$ 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.159,076,372 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.(153,920,379) OPEB liability payable is not due and payable in the current period and therefore, is not reported in the governmental funds.(1,368,812) Interest accrual from last interest payment (December 1, 2010 or January 1, 2011) to February 28, 2011.(1,133,800) The net assets of the internal service fund are included in the governmental activities in the statement of net assets.2,774,857 Net assets of governmental activities 76,741,992$ February 28, 2011 Assets Liabilities and Fund Balances The accompanying notes are an integral part of this statement. -30- CITY OF EVANSTON, ILLINOIS Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Employer Nonmajor Total Capital Pension Governmental Governmental General Improvements Contribution Funds Funds Revenues Taxes 39,184,101$ -$ 13,191,893$ 21,183,408$ 73,559,402$ Licenses and permits 8,661,398 - - - 8,661,398 Special assessments - - - 429,487 429,487 Intergovernmental 15,745,906 1,876,720 - 8,833,514 26,456,140 Charges for services 9,785,836 - - - 9,785,836 Fines and forfeits 4,002,700 - - - 4,002,700 Investment income 11,454 49,068 - 494,344 554,866 Miscellaneous 5,987,365 80,866 - 320,653 6,388,884 Total Revenues 83,378,760 2,006,654 13,191,893 31,261,406 129,838,713 Expenditures Current General management and support 21,814,654 119,426 - 1,529,359 23,463,439 Public safety 35,258,964 79,169 13,191,893 1,821,835 50,351,861 Public works 12,618,308 123,182 - 1,311,942 14,053,432 Health and human resource development 3,700,431 - - 840,523 4,540,954 Recreation and cultural opportunities 17,390,458 7,792 - 293 17,398,543 Housing and economic development 2,952,803 - - 8,392,193 11,344,996 Debt service Principal 101,030 243,764 - 7,304,740 7,649,534 Interest 38,970 - - 4,838,812 4,877,782 Fiscal agent fees - - - 12,248 12,248 Capital outlay - 6,920,986 - 190,932 7,111,918 Total Expenditures 93,875,618 7,494,319 13,191,893 26,242,877 140,804,707 Excess (Deficiency) of Revenues Over (Under) Expenditures (10,496,858) (5,487,665) - 5,018,529 (10,965,994) Other Financing Sources (Uses) Transfers in 5,409,384 - - 317,954 5,727,338 Transfers out - (658,121) - (5,526,434) (6,184,555) Issuance of debt 6,893,299 6,500,000 - - 13,393,299 Premiums and discounts 3,023 101,434 - - 104,457 Accrued interest 7,355 7,922 - - 15,277 Total Other Financing Sources (Uses) 12,313,061 5,951,235 - (5,208,480) 13,055,816 Net Change in Fund Balances 1,816,203 463,570 - (189,951) 2,089,822 Fund Balances -Beginning of Year 20,187,549 5,441,774 - 43,594,609 69,223,932 Fund Balances - End of Year 22,003,752$ 5,905,344$ -$ 43,404,658$ 71,313,754$ Year ended February 28, 2011 The accompanying notes are an integral part of this statement. -31- 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 2,089,822$ 6,849,132 17,352,207 (13,497,756) (5,122,475) (352,016) (33,877) Internal service funds are reported separately in the fund financial statements. 1,101,447 Change in net assets of governmental activities 8,386,484$ 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. 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 fiscal year ended February 28, 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 Year ended February 28, 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. 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. -32- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Net Assets Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer System Total Funds Current Assets Cash and equivalents 6,275,816$ -$ 11,584,448$ 17,860,264$ 1,426,695$ Restricted cash and equivalents and investments 1,060,301 3,152,553 - 4,212,854 - Receivables Accounts - billed 1,182,100 266,445 - 1,448,545 - Accounts - unbilled 896,991 2,092,638 - 2,989,629 - Other - - 61,308 61,308 625,747 Due from other funds 19,768 - 5,150,000 5,169,768 15,334 Inventories 609,278 153,083 - 762,361 396,460 Prepaid Expenses - - - - 1,171,968 Total Current Assets 10,044,254 5,664,719 16,795,756 32,504,729 3,636,204 Noncurrent Assets Capital Assets Capital assets not being depreciated 1,327,638 - 3,102,274 4,429,912 - Capital assets being depreciated 76,318,163 243,285,415 79,110,715 398,714,293 20,431,236 Less accumulated depreciation (20,784,758) (38,182,184) (15,719,417) (74,686,359) (15,112,841) Total Capital Assets 56,861,043 205,103,231 66,493,572 328,457,846 5,318,395 Other Assets Notes Receivable - - 249,000 249,000 - Total Noncurrent Assets 56,861,043 205,103,231 66,742,572 328,706,846 5,318,395 Total Assets 66,905,297 210,767,950 83,538,328 361,211,575 8,954,599 February 28, 2011 Business-type Activities- Enterprise Funds Assets The accompanying notes are an integral part of this statement. -33- Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer System Total Funds Current Liabilities Vouchers payable 149,995$ 10,161$ 86,044$ 246,200$ 401,580$ Vouchers payable - restricted - 1,227,077 - 1,227,077 - Interest payable - - 264,909 264,909 - Interest payable - restricted 8,224 879,516 - 887,740 - Revenue bonds payable 479,167 - - 479,167 - Revenue bonds payable - restricted 95,833 - - 95,833 - Compensated absences payable 216,943 77,615 31,973 326,531 31,451 General obligation bonds payable 62,272 13,622 2,381,406 2,457,300 - General obligation bonds payable - restricted - 2,863,200 - 2,863,200 - Claims payable - - - - 2,703,328 Notes payable - Sewer IEPA Loans - restricted 28,937 8,103,018 - 8,131,955 - Due to other funds 155,258 4,059,192 59,052 4,273,502 210,853 Unearned revenue 674 - - 674 - Total Current Liabilities 1,197,303 17,233,401 2,823,384 21,254,088 3,347,212 Long-Term Liabilities Notes payable - Sewer IEPA Loans 1,128,514 77,798,681 - 78,927,195 - General obligation bonds payable 649,179 7,527,138 22,715,744 30,892,061 - OPEB liability payable 84,726 23,839 24,334 132,899 29,331 Revenue bonds payable 595,000 - - 595,000 - Unamortized bond discount/premium 12,419 264,950 615,588 892,957 - Compensated absences payable 237,514 84,971 35,003 357,488 51,324 IMRF Pension contributions payable 149,845 33,311 49,962 233,118 - Claims payable - - - - 2,751,875 Total Long-Term Liabilities 2,857,197 85,732,890 23,440,631 112,030,718 2,832,530 Total Liabilities 4,054,500 102,966,291 26,264,015 133,284,806 6,179,742 Invested in capital assets, net of related debt 55,092,894 108,690,722 43,377,984 207,161,600 5,318,395 Restricted for debt service 1,224,016 - - 1,224,016 - Restricted for capital improvements 400,000 - - 400,000 - Unrestricted 6,133,887 (889,063) 13,896,329 19,141,153 (2,543,538) Total net assets 62,850,797$ 107,801,659$ 57,274,313$ 227,926,769$ 2,774,857$ Liabilities Net Assets Business-type Activities- Enterprise Funds -34- 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 System Total Funds Operating Revenues Charges for services 13,086,057$ 13,347,308$ 5,894,507$ 32,327,872$ 20,556,190$ Miscellaneous 651,825 45,978 92,525 790,328 4,848 Total Operating Revenues 13,737,882 13,393,286 5,987,032 33,118,200 20,561,038 Operating Expenses Excluding Depreciation Administration 820,136 1,843,159 1,602,045 4,265,340 - Operations 6,371,441 559,549 3,734,977 10,665,967 19,836,523 Total Operating Expenses Excluding Depreciation 7,191,577 2,402,708 5,337,022 14,931,307 19,836,523 Operating Income (Loss) Before Depreciation 6,546,305 10,990,578 650,010 18,186,893 724,515 Depreciation 1,439,663 3,291,386 2,038,940 6,769,989 1,197,047 Operating Income (Loss)5,106,642 7,699,192 (1,388,930) 11,416,904 (472,532) Nonoperating Revenues (Expenses) Investment income 14,799 1,619 5,998 22,416 1,927 Interest expense (67,615) (3,146,960) (1,122,958) (4,337,533) - Bond expenses and amortization of discount 1,129 - 74,054 75,183 - Amortization of bond premium - 56,824 - 56,824 - Other expenses (1,641) - - (1,641) - Gain (loss) on disposition of assets (13,434) - - (13,434) 74,907 Total Nonoperating Revenues (Expenses)(66,762) (3,088,517) (1,042,906) (4,198,185) 76,834 Income (Loss) before transfers and contributions 5,039,880 4,610,675 (2,431,836) 7,218,719 (395,698) Capital Contribution - Governmental Activities - - - - 1,139,024 Transfers In (Out) Capital Improvements - - - - 358,121 Washington National Tax Increment District - - 3,385,896 3,385,896 - General (3,286,800) - - (3,286,800) - Total Transfers In (Out)(3,286,800) - 3,385,896 99,096 358,121 Change in Net Assets 1,753,080 4,610,675 954,060 7,317,815 1,101,447 Total Net Assets - Beginning of Year, as restated 61,097,717 103,190,984 56,320,253 220,608,954 1,673,410 Total Net Assets - End of Year 62,850,797$ 107,801,659$ 57,274,313$ 227,926,769$ 2,774,857$ The accompanying notes are an integral part of this statement. Year ended February 28, 2011 Business-type Activities- Enterprise Funds -35- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer System Total Funds Cash Flows from Operating Activities Receipts from customers and users 14,756,015$ 13,234,865 5,990,174$ 33,981,054$ 20,561,309$ Receipts from interfund services provided - 4,054,159 - 4,054,159 - Payments to suppliers (6,690,811) (667,564) (3,843,873) (11,202,248) (3,136,416) Payments to employees (667,915) (1,756,792) (1,563,685) (3,988,392) (3,866,022) Payments for interfund services provided (100,966) - (3,802,573) (3,903,539) (103,121) Payments for insurance premiums - - 7,636 7,636 (12,355,778) Net Cash Provided by (Used for) Operating Activities 7,296,323 14,864,668 (3,219,957) 18,941,034 1,099,972 Cash Flows from Noncapital Financing Activities Transfers In (Out) Capital Improvements - - - - 358,121 Washington Tax Increment District - - 3,385,896 3,385,896 - General (3,286,800) - - (3,286,800) - Net Cash Provided by (Used for) Noncapital Financing Activities (3,286,800) - 3,385,896 99,096 358,121 Cash Flows from Capital and Related Financing Activities Sale of capital assets - - - - 91,591 Acquisition and construction of capital assets (3,134,711) (146,166) (164,457) (3,445,334) (1,801,097) Early Retirement Incentive payment (711,451) (158,100) (237,150) (1,106,701) - Principal paid on revenue bonds (554,166) - - (554,166) - Interest paid on revenue bonds (67,615) - - (67,615) - Proceeds from general obligation bonds 711,451 158,100 237,150 1,106,701 - Principal paid on general obligation bonds - (2,710,260) (2,420,000) (5,130,260) - Interest paid on general obligation bonds - (734,437) (1,122,958) (1,857,395) - Principal paid on IEPA loans - (8,226,025) - (8,226,025) - Interest paid on IEPA loans - (2,497,893) - (2,497,893) - Net Cash (Used for) Capital and Related Financing Activities (3,756,492) (14,314,781) (3,707,415) (21,778,688) (1,709,506) Cash Flows from Investing Activities Interest income 14,799 1,619 5,998 22,416 1,927 Net Cash Provided by Investing Activities 14,799 1,619 5,998 22,416 1,927 Net Increase (Decrease) in Cash and Equivalents 267,830 551,506 (3,535,478) (2,716,142) (249,486) Cash and Equivalents Beginning of year 7,068,287 2,601,047 15,119,926 24,789,260 1,676,181 End of year 7,336,117$ 3,152,553$ 11,584,448$ 22,073,118$ 1,426,695$ Reconciliation Cash and equivalents Current Cash 6,275,816$ -$ 11,584,448$ 17,860,264$ 1,426,695$ Restricted Current Cash 1,060,301 3,152,553 - 4,212,854 - 7,336,117$ 3,152,553$ 11,584,448$ 22,073,118$ 1,426,695$ Year ended February 28, 2011 Business-type Activities- Enterprise Funds The accompanying notes are an integral part of this statement.Continued -36- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Governmental Activities- Motor Vehicle Internal Parking Service Water Sewer System Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) 5,106,642$ 7,699,192$ (1,388,930)$ 11,416,904$ (472,532)$ Depreciation 1,439,663 3,291,386 2,038,940 6,769,989 1,197,047 Changes in assets and liabilities Increase/decrease in A/R miscellaneous (147,505) (159,809) - (307,314) 271 Other receivables 1,173,663 - (1,858) 1,171,805 - Notes receivables - - 5,000 5,000 - lnterfund receivable - - (3,802,573) (3,802,573) - Inventories 62,096 27,294 - 89,390 (52,671) Accrued interest receivable - 1,388 - 1,388 - Compensated absences (19,224) 45,777 (19,238) 7,315 (2,136) Bonds payable 4,166 - - 4,166 243,110 lnterfund payable (100,966) 4,054,159 - 3,953,193 (103,121) OPEB liability payable 21,600 7,279 7,636 36,515 8,546 IMRF contributions payable 149,845 33,311 49,962 233,118 - Unearned revenue (12,191) - - (12,191) - Vouchers payable (355,494) 5,522 (101,123) (451,095) (377) Vouchers payable (restricted)(22,318) (45,688) 13,335 (54,671) - Interest payable (3,654) (95,143) (21,108) (119,905) - Claims payable - - - - 281,835 Net Cash Provided by (Used for) Operating Activities 7,296,323$ 14,864,668$ (3,219,957)$ 18,941,034$ 1,099,972$ Business-type Activities- Enterprise Funds Year ended February 28, 2011 The accompanying notes are an integral part of this statement.Concluded -37- CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets Pension Trust Funds Assets Cash and short-term investments 7,009,095$ Receivables Accrued interest 262,142 Contribution receivable - Due from other funds 6,112,022 Total Receivables 6,374,164 Investments, at fair value U.S. Government obligations 44,618,916 Common stock 22,682,767 Mutual funds 46,144,545 Total Investments 113,446,228 Total Assets 126,829,487 Liabilities Vouchers payable 4,999 Due To Fire 152 Total Liabilities 5,151 Net assets held in trust 126,824,336$ February 28, 2011 The accompanying notes are an integral part of this statement. -38- CITY OF EVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Pension Trust Funds Additions Contributions Employer 13,191,893$ Plan members 2,019,636 Other-Donations, Legal Sett.,Surplus Sales 95 Total contributions 15,211,624 Investment income Net appreciation (depreciation) in fair value of investments 9,089,361 Investment income 2,136,248 Total investment income 11,225,609 Less investment expense 328,586 Net investment income 10,897,023 Total additions 26,108,647 Deductions Benefits 14,303,621 Refunds of contributions 149,950 Administrative expense 120,802 Total deductions 14,574,373 Net increase 11,534,274 Net assets held in trust for pension benefits Beginning of year 115,290,062 End of year 126,824,336$ Year Ended February 28, 2011 The accompanying notes are an integral part of this statement. -39- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page Note 1. Summary of Significant Accounting Policies A. Reporting Entity 43 B. Government-wide and Fund Financial Statements 44 C. Fund Accounting 45 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 45 E. Cash and Equivalents 48 F. Investments 48 G. Inventories 49 H. Capital Assets 49 I. Compensated Absences 49 J. Long-Term Obligations 50 K. Self-Insurance 50 L. Property Taxes 50 M. Fund Equity 51 N. Interfund Transactions 51 O. Use of Estimates 51 P. Property held for resale 51 Q. Effect of New Accounting Standards on Current Period Financial Statements 51 R. Accounting and Financial Reporting for Intangible Assets 52 S. Restatement of Net Assets 52 T. Conduit Debt 52 Note 2. Reconciliation of Government-wide and Fund Financial Statements A. 53 B. 53 Note 3. Stewardship, Compliance, and Accountability A. Budgetary Information 55 B. Deficit Fund Equity 56 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 57 B. Pooling of Cash and Investments 57 C. Types of Investments 58 D. Deposits 60 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 -40- 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 Note 8. Operating Leases 71 Note 9. Long-Term Debt A. Changes in Long-Term Debt 72 B. General Obligation Bonds Payable 74 C. Special Service District Bonds Payable 75 D. Revenue Bonds Payable 75 E. Notes Payable – IEPA Loans 76 F. Prior Years' General Obligation Bond Defeasances 76 G. Post Employment benefits other than Pensions (Defined Benefit Plan)77 H. Capital Leases 79 Note 10. Fund Equity A. Restrictions of Net Assets - Water Fund 80 B. Restricted Net Assets - Fiduciary Funds 80 C. Reservations of Fund Equity 81 D. Unrestricted Fund Equity - Designated 82 Note 11. Individual Fund Activities A. General Obligation Debt Service Fund 83 B. Water Fund 83 C. Special Service District No. 4 83 Note 12. Risk Management – Claims and Judgments 84 -41- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 13. Contingencies 85 Note 14. Joint Ventures A. Solid Waste Agency of Northern Cook County 85 B. Evanston Housing Corporation 87 Note 15. Deferred Compensation Plan 88 Note 16. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description 89 B. Funding Status and Progress 90 C. Annual Pension Cost 90 Police and Firefighters' Pension Plans D. Plan Descriptions 91 E. Summary of Significant Accounting Policies - Basis of Accounting 93 - Method Used to Value Investments 93 F. Contributions and Reserves 94 G. Concentration of Investments 95 H. Five-Year Trend Information – Pension Trust Funds 95 I. Pensions - Detailed Statement of Net Assets 96 J. Pensions - Detailed Statement of Changes in Net Assets 97 K. Pensions - Actuarial Valuations 98 -42- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 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 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 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, 2010. This report is the most recent one available. 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. -43- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 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. 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. -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Fund Accounting D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 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 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. Funds are classified into three categories:governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." 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 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. 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. -45- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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. The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The 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. 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. 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. -46- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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: 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. 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 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. 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. 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 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. 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. -47- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 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. 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. 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. 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. -48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued G. Inventories 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 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. 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. 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. 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. 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. Property, plant, and equipment are depreciated, and intangible assets are amortized using the straight-line method over the following estimated useful lives: -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued J. Long-Term Obligations 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 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. 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. 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 year between March 1, 2010 and February 28, 2011 and all property tax collections received within 60 days after the end of the fiscal year. A 2% allowance for loss is reflected in the City financial statements. 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. 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. -50- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued L. Property Taxes - Continued M. Fund Equity N. Interfund Transactions O. Use of Estimates P. Property Held for Resale Q. Effect of New Accounting Standards on Current Period Financial Statements In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent management plans that are subject to change. 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. 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. The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2009 property tax levy that will not be collected within 60 days of the Township's March 31, 2010 year-end. A 5% allowance for loss is reflected in the Township financial statements. 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 Governmental Accounting Standards Board (GASB)has approved GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, Statement 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. Application of these standards may restate portions of these financial statements. In the Governmental Funds the cost of property held for resale is reported as an asset with increases and decreases for purchases and sales. -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued R. Accounting and Financial Reporting for Intangible Assets S. Restatement of Net Assets T. Conduit Debt The City's net assets for the period ending February 28, 2010 have been restated for the Governmental activities in the amount of $6,798,305 and Business type activities in the amount of $1,106,701. In the Business type activities, net assets of Water Fund, Sewer Fund and Parking Fund were restated for $711,451, $158,100 and $237,150 respectively. The net assets were restated (decreased) to correct an error because of the IMRF Employee Retirement Incentive (ERI) benefit liability incurred in the earlier year but not recorded. The City has issued $5,000,000 Series 2010 Revenue Bonds during the fiscal year to provide financial assistance to Chiravalle Montessori School, deemed to be in public interest. The use of proceeds includes the property purchase from City of Evanston, improvement to the existing building, refinancing existing debt and payment of miscellaneous costs. The bonds are secured by the property or mortgages financed and are payable from the moneys, securities and other revenues pledged under the indenture by the School. The City is not obligated in any manner for the repayment of bonds. Accordingly, the bonds outstanding are not reported as a liability in these financial statements. Governmental Accounting Standards Board (GASB) statement No. 51 establishes standards of accounting and financial reporting for intangible assets. Accordingly, Computer Software and Systems have been reclassified and reported as intangible assets in the Capital Assets footnote. -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. General obligation bonds payable 117,322,439$ Bonds premium liability 4,118,638 Compensated absences payable 9,910,267 Capital lease 363,759 IMRF Pension contributions payable 1,223,870 Pension contributions payable 20,981,406 153,920,379$ B. 1. Capital outlay 14,513,785$ Depreciation expense (7,664,653) 6,849,132$ 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 -53- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 2. B. 2. Principal repayments: General obligation debt 6,989,740$ SSD#5 Bond 315,000 IMRF Pension contributions payable 2,904,369 Capital lease 344,793 Early Retirement Incentive payable 6,798,305 17,352,207$ 3. Compensated absences 1,438,421$ Amortization income 525,425 Pension contributions (2,958,082) IMRF Pension contributions payable (4,128,239) (5,122,475)$ 4. Bond (13,393,299)$ Bond premium liability (104,457) (13,497,756)$ 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: 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 -54- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 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, 2012. 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. 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 23, 2008. 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 year. Library Endowment and Employer Pension Contribution Funds. -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued A. Budgetary Information - Continued Fund Actual Budget Excess Community Development Loan $ 35,574 20,000$ $ 15,574 Neighborhood Stabilization Program 2 4,205,637 4,000,000 205,637 Special Service District No. 4 Fund 378,216 378,000 216 Township - Town Fund 519,818 518,719 1,099 Southwest Tax Increment District 840,523 840,000 523 Howard Hartrey Tax Increment District 711,843 675,053 36,790 Howard Ridge Tax Increment District 495,245 - 495,245 B. DEFICIT FUND EQUITY The Insurance Fund, an internal service fund, had a net deficit of $4,937,496 as of February 28, 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 fiscal year-end. The following funds had an excess of actual budgetary expenditures over original and final budget for the year ended February 28, 2011: -56- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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. -57- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 17,942,950$ 17,942,950$ -$ -$ 10,048,368 10,048,368 - - 2,696,637 - - 2,696,637 Total Governmental and Enterprise Investment Fund $ 30,687,955 $ 27,991,318 $ - $ 2,696,637 743,351$ 3,312,602 13,433,212 453,785 $ 17,942,950 Investment Maturities (In Years) Fair Value Less Than 1 Year 1 - 10 More Years Equities 1,882,713$ 1,882,713$ -$ -$ Total Township Investment $ 1,882,713 $ 1,882,713 $ - $ - Total Money Market / Liquid Assets Township Investment Type First Bank Money Market JP Morgan Money Market Vanguard Money Market Illinois Funds IMET Money Market Investment Type Money Market / Liquid Assets Illinois Funds Mutual Funds As of February 28, 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 -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued Investment Maturities (In Years) Fair Value Less Than 1 Year 1 - 10 More Years Equities 6,275,633$ 6,275,633$ -$ -$ 46,144,545 - 1,619,961 44,524,584 23,062,203 348,486 22,713,717 - 2,560,705 207,434 2,353,271 - 3,814,329 - 3,814,329 - 9,330,667 244,636 9,086,031 - 5,851,014 - 5,851,014 - 22,682,765 - - 22,682,765 $ 119,721,861 $ 7,076,189 $ 45,438,323 $ 67,207,349 -$ 884,552 2,099,190 408,320 2,753,350 130,221 $ 6,275,633 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. Investments in Illinois Funds and IMET are valued at the fund’s share price, the price for which the investments could be sold. 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. Schwab Money Market MB Bank Money Market IMET Money Market Convenience 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. Total Money Market / Liquid Assets Ginnie Mae Common Stock Total Fire and Police Investment JP Morgan Trust Money Market 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 Investment Type Fire and Police Pension -59- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued D. Deposits City Township Fiduciary 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 and certificates of deposits. At February 28, 2011, the carrying amount of the City's deposits, including cash on hand of $15,850, was $36,717,993. The financial institutions' balances totaled $36,870,453. At March 31, 2010, the carrying amount of the Township's deposits was $200,162. The financial institutions' balances totaled $206,933. Deposits consist of deposits in interest-bearing and noninterest-bearing accounts. At February 28, 2011, the carrying amount of the Pension's deposits was $733,462. The financial institutions' balances totaled $632,736. Custodial Credit Risk.For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All of the City's investments were insured, registered, or held by the counterparty’s trust department in the City’s name. Concentration of Credit Risk.It is the policy of the City to diversify its investment portfolio.Investments shall be diversified to eliminate the risk of loss resulting from overconcentration in a security, maturity, issuer, or class of securities. -60- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued E. Reconciliation of Unrestricted and Restricted Cash and Investments Unrestricted cash and equivalents 62,579,332$ Unrestricted investments 2,696,637 Restricted cash and equivalents and investments 4,212,854 Total Cash and Investments – Primary Government 69,488,823 Fiduciary funds cash and equivalents 7,009,095 Fiduciary funds investments 113,446,228 Total Cash and Investments 189,944,146$ Carrying amount of deposits – from Note 4 D 37,651,617$ Investments – from Note 4 C 152,292,529 Total 189,944,146$ 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: -61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 5. RECEIVABLES A. Summary of Receivables Motor Employer Vehicle Nonmajor General Pension Parking and Other Fund Contribution Water Sewer System Funds Total Receivables: Property taxes 16,447,232$ 13,597,749$ -$ -$ -$ 19,179,458$ 49,224,439$ Accounts - - 2,079,091 2,359,083 - - 4,438,174 Notes - - - - - 6,092,308 6,092,308 Special assessments - - - - - 862,381 862,381 Accrued interest - - - - - 1,656 1,656 Other 1,983,145 - - - 61,308 1,104,572 3,149,025 Gross receivables 18,430,377 13,597,749 2,079,091 2,359,083 61,308 27,240,375 63,767,983 Less: allowance for uncollectibles (328,945) (271,955) - - - (473,589) (1,074,489) Net total receivables 18,101,432$ 13,325,794$ 2,079,091$ 2,359,083$ 61,308$ 26,766,786$ 62,693,494$ B. Notes Receivable – Special Revenue Funds Interest Beginning Loans Loan End of Rates of Year Made Repayments Year 0% - 8%5,383,108$ 767,539$ 148,339$ 6,002,308$ Receivables as of year-end for the government’s individual major funds, nonmajor, internal service funds and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Out of the total Notes Receivable, $6,028,007 is estimated not to be paid during the next year. Out of the total Special Assessment receivable, $487,781 is estimated not to be paid during the next year. 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 $90,000 exists in the Special Revenue funds due to doubtful accounts. Loan activity for the current year is summarized as follows: -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 6. CAPITAL ASSETS A. Capital Asset Activity Capital asset activity for the year ended February 28, 2011, was as follows: Beginning of Year Additions Deletions Transfers End of Year Governmental activities: Capital assets, not being depreciated: Land 6,556,620$ 487,804$ 220,000$ -$ 6,824,424$ Right of way 18,695,896 - - - 18,695,896 Artwork 115,000 - - - 115,000 Construction in progress 5,460,924 1,649,733 5,180,345 - 1,930,312 Total capital assets, not being depreciated 30,828,440 2,137,537 5,400,345 - 27,565,632 Capital assets, being depreciated: Buildings and improvements 85,760,858 2,765,241 - - 88,526,099 Office equipment and furniture 11,261,861 457,943 - (6,024,590) 5,695,214 Intangible assets - - - 6,024,590 6,024,590 Machinery and equipment 22,137,038 1,312,438 898,352 - 22,551,124 Infrastructure 117,548,597 14,379,402 - - 131,927,999 Library collections 10,215,429 311,141 1,100,748 - 9,425,822 Capitalized leases 1,438,196 - 344,794 - 1,093,402 Total capital assets being depreciated 248,361,979 19,226,165 2,343,894 - 265,244,250 Less accumulated depreciation for: Buildings and improvements 30,713,307 1,897,635 - - 32,610,942 Office equipment and furniture 9,915,969 296,927 - (5,246,705) 4,966,191 Intangible assets - - - 5,246,705 5,246,705 Machinery and equipment 16,009,303 1,350,075 881,668 - 16,477,710 Infrastructure 56,498,489 4,538,345 - - 61,036,834 Library collections 7,694,426 665,852 1,100,748 - 7,259,530 Capitalized leases 767,712 83,970 34,479 - 817,203 Total accumulated depreciation 121,599,206 8,832,804 2,016,895 - 128,415,115 Total capital net assets being depreciated, net 126,762,773 10,393,361 326,999 - 136,829,135 Governmental activities capital assets, net 157,591,213$ 12,530,898$ 5,727,344$ -$ 164,394,767$ -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Beginning of Year Additions Deletions Transfers End of Year Business-type activities: Capital assets, not being depreciated: Land 3,297,937$ -$ -$ -$ 3,297,937$ Construction in progress 1,923,555 3,283,096 4,434,428 - 772,223 Artwork 359,752 - - - 359,752 Total capital assets, not being depreciated 5,581,244 3,283,096 4,434,428 - 4,429,912 Capital assets, being depreciated: Land improvements 3,563,393 - - - 3,563,393 Buildings and improvements 73,491,559 115,098 - - 73,606,657 Leasehold improvements 302,752 - - - 302,752 Plant 35,655,342 469,765 32,040 - 36,093,067 Transmission and distribution system 35,883,841 3,411,715 - - 39,295,556 Sewer system and underground lines 241,791,489 164,171 - - 241,955,660 Intangible assets - - - 384,917 384,917 Equipment 2,815,833 434,277 60,590 (384,917) 2,804,603 Parking meters 707,688 - - - 707,688 Total capital assets being depreciated 394,211,897 4,595,026 92,630 - 398,714,293 Less accumulated depreciation for: Land improvements 1,003,082 112,973 - - 1,116,055 Buildings and improvements 11,712,660 1,792,109 - - 13,504,769 Leasehold improvements 298,452 4,300 - - 302,752 Plant 12,123,356 887,033 19,335 - 12,991,054 Transmission and distribution system 6,735,593 488,270 - - 7,223,863 Sewer system and underground lines 33,730,310 3,256,660 - - 36,986,970 Intangible assets - - - 54,988 54,988 Equipment 1,914,231 184,723 59,860 (54,988) 1,984,106 Parking meters 477,883 43,919 - - 521,802 Total accumulated depreciation 67,995,567 6,769,987 79,195 - 74,686,359 Total capital net assets being depreciated, net 326,216,330 (2,174,961) 13,435 - 324,027,934 Business-type activities capital assets, net 331,797,574$ 1,108,135$ 4,447,863$ -$ 328,457,846$ -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 363,952$ Public safety 643,331 Public works 5,259,889 Recreation and cultural opportunities 2,565,632 Total depreciation expense – governmental activities 8,832,804$ Business – type activities: Water 1,439,661$ Sewer 3,291,385 Motor Vehicle Parking 2,038,941 Total depreciation expense – business – type activities 6,769,987$ B. Construction Commitments Capital Improvement Fund 952,977$ Water Fund 327,123 Total Construction Commitments 1,280,100$ The value of construction contracts signed, where the work has not yet been performed at February 28, 2011, is as follows: -65- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 7. INTERFUNDS A. Interfund Accounts At February 28, 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 18,019$ -$ Economic Development 22,295 - Fleet Service 33,636 - Insurance 162,561 - Community Development Block Grant 37,990 - Capital Improvements 7,450 - Home Fund 7,369 - Affordable Housing - 150,000 Special Assessment CP Fund - 121 Motor Vehicle Parking System 59,052 - Water 154,023 - Sewer 38,857 - Neighborhood Stabilization Program 2 3,864 - Neighborhood Improvement Fund - 20,000 Firefighters Pension 152 - Police Pension - 322 Total General Fund 545,268 170,443 Capital Improvements General Fund - 7,450 Motor Vehicle Parking System - 1,150,000 Total Capital Improvements - 1,157,450 Employer Pension Contribution Firefighters Pension - 2,757,955 Police Pension - 3,353,745 Total Employer Pension Contribution - 6,111,700 Nonmajor Governmental Funds Affordable Housing Community Development Block Grant 150,000 - Neighborhood Stabilization Program 2 General Fund - 3,864 Economic Development General Fund - 22,295 Emergency Telephone System General Fund - 18,019 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 Fiscal Year Ending February 28, 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 -$ 7,369$ Community Development Block Grant General Fund - 37,990 Community Development Loan - 6,741 Special Assessment CP Fund - 30,493 Total Community Development Block Grant - 75,224 Community Development Loan Community Development Block Grant 6,741 - Neighborhood Improvement Fund General Fund 20,000 - Howard Hartrey Tax increment District Special Service District No. 4 75,000 - Special Service District No. 4 Special Service District No. 5 - 9,762 Howard Hartrey Tax Increment District - 75,000 Total Special Service District No. 4 - 84,762 Special Service District No. 5 Special Service District No. 4 9,762 - Town General Assistance - 7,185 General Assistance Town 7,185 - Special Assessment CP Fund General Fund 121 - Community Development Block Grant 30,493 - Water 557 - Sewer 567 - Total Special Assessment 31,738 - Total Nonmajor Governmental Funds 300,426 218,718 Total Governmental Funds 845,694 7,658,311 -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Due from Due to Funds Other Funds Other Funds Enterprise Funds Water General Fund -$ 154,023$ Insurance - 678 Special Assessment CP Fund - 557 Sewer 19,768 - Total Water 19,768 155,258 Sewer General Fund - 38,857 Motor Vehicle Parking System - 4,000,000 Special Assessment CP Fund - 567 Water - 19,768 Total Sewer - 4,059,192 Motor Vehicle Parking System General Fund - 59,052 Sewer 4,000,000 - Capital Improvements 1,150,000 - Total Motor Vehicle Parking System 5,150,000 59,052 Total Enterprise Funds 5,169,768 4,273,502 Internal Service Funds Fleet Services General Fund - 33,636 Insurance - 14,656 Total Fleet Services - 48,292 Insurance General Fund - 162,561 Water 678 - Fleet Services 14,656 - Total Insurance 15,334 162,561 Total Internal Service Funds 15,334 210,853 Trust and Agency Funds Firefighters Pension Employer Pension Contribution 2,757,955 - General Fund - 152 Total Firefighters Pension 2,757,955 152 Police Pension Employer Pension Contribution 3,353,745 - General Fund 322 - Total Police Pension 3,354,067 - Total Trust and Agency Funds 6,112,022 152 Total Primary Government 12,142,818$ 12,142,818$ -68- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers At February 28, 2011 transfers in / out consist of the following: Transfers Transfers Funds In Out Governmental Funds General Fund Affordable Housing Fund 24,000$ -$ Washington Natl. Tax Increment District Debt Svc.324,996 - Howard Hartrey Tax Increment District 141,600 - Southwest Tax Increment District 24,096 - Capital Improvement Fund 300,000 - Water Fund 3,286,800 - Howard Ridge Tax Increment District 120,396 - Motor Fuel Tax Fund 772,500 - West Evanston Tax Increment District 24,996 - Economic Development 390,000 - Total General Fund 5,409,384 - Capital Improvements Fleet Services - 358,121 General Fund - 300,000 Total Capital Improvement - 658,121 Nonmajor Governmental Funds Affordable Housing Fund General Fund - 24,000 Economic Development General Fund - 390,000 Town General Assistance 290 - General Assistance Town - 290 General Obligation Debt Service Fund Special Assessment 317,664 - 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 Fiscal Year Ending February 28, 2011 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Transfers Transfers Funds In Out Nonmajor Governmental Funds - Continued Southwest Tax Increment District General Fund -$ 24,096$ Howard Hartrey Tax Increment District General Fund - 141,600 Howard Ridge Tax Increment District General Fund - 120,396 Washington Natl. Tax Increment District Debt Svc. General Fund - 324,996 Motor Vehicle Parking System - 3,385,896 Total Washington National Tax Increment District - 3,710,892 West Evanston Tax Increment District General Fund - 24,996 Special Assessment General Obligation Debt Service Fund - 317,664 Motor Fuel Tax General Fund - 772,500 Total Nonmajor Governmental Funds 317,954 5,526,434 Total Governmental Funds 5,727,338 6,184,555 Enterprise Funds Water General Fund - 3,286,800 Motor Vehicle Parking System Washington Natl. Tax Increment District Debt Svc.3,385,896 - Total Enterprise Funds 3,385,896 3,286,800 Internal Service Funds Fleet Services Capital Improvements 358,121 - Total Internal Service Funds 358,121 - Total Primary Government 9,471,355$ 9,471,355$ -70- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 11,607$ Copiers Secap Finance 12/31/2014 1 255 3,060 Postage Machine Minimum annual lease payments are as follows: Year ending 12/31/2011 $ 18,970 Year ending 12/31/2012 22,764 Year ending 12/31/2013 22,764 Year ending 12/31/2014 14,554 79,052$ 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. -71- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 9. LONG-TERM DEBT A. Changes in Long-Term Debt Final Balance Balance Interest Maturity 3/1/2010 2/28/2011 Due Within Rate Date As Restated Issued Payments One Year G.O. Debt Governmental Activities Series 2002C 5.00%-5.80% 1/1/2022 3,365,000$ -$ 685,000$ 2,680,000$ 675,000$ Series 2002C (SSA#5)5.00%-5.80% 1/1/2016 2,155,000 - 315,000 1,840,000 325,000 Series 2003B 2.00%-5.25% 1/1/2023 3,145,000 - 365,000 2,780,000 660,000 Series 2004 2.00%-5.00% 12/1/2023 12,640,000 - 785,000 11,855,000 815,000 Series 2004B 2.00%-5.25% 12/1/2017 7,460,000 - 1,465,000 5,995,000 1,535,000 Series 2005 3.25%-5.00% 12/1/2025 15,200,000 - 525,000 14,675,000 545,000 Series 2006 3.85%-5.00% 12/1/2026 9,930,000 - 125,000 9,805,000 125,000 Series 2006B 4.00%-4.25% 12/1/2023 14,430,000 - - 14,430,000 - Series 2007 4.00%-5.00% 12/1/2016 19,790,000 - 1,105,000 18,685,000 1,150,000 Series 2008A 3.00%-5.00% 12/1/2021 3,605,000 - 195,000 3,410,000 195,000 Series 2008C 3.00%-5.00% 12/1/2028 9,623,880 - 349,740 9,274,140 361,800 Series 2008D 3.25%-5.00% 12/1/2016 9,890,000 - 1,390,000 8,500,000 1,415,000 Series 2010A 2.00%-3.625% 12/1/2029 - 6,500,000 - 6,500,000 240,000 Series 2010B 1.00%-3.30% 12/1/2019 - 6,893,299 - 6,893,299 597,700 Subtotal Governmental Activity G.O. Debt 111,233,880 13,393,299 7,304,740 117,322,439 8,639,500 Capital lease 708,552 - 344,793 363,759 363,759 Bonds premium liability 4,539,606 104,457 525,425 4,118,638 - OPEB liability 1,037,581 360,562 - 1,398,143 - Pension contributions 18,023,324 16,150,070 13,191,988 20,981,406 - Compensated absences payable- City 11,503,888 3,396,183 4,877,873 10,022,198 4,060,365 IMRF Pension contributions - 4,128,239 2,904,369 1,223,870 - Early Retirement Incentive payable 6,798,305 - 6,798,305 - - Claims payable 5,173,368 1,701,681 1,419,846 5,455,203 2,703,328 Subtotal Other G.A. Liabilities 47,784,624 25,841,192 30,062,599 43,563,217 7,127,452 Total Governmental Activity Debt & Liabilities 159,018,504$ 39,234,491$ 37,367,339$ 160,885,656$ 15,766,952$ G.O. Debt Business-type Activities Series 2005 Sherman Garage 3.25%-5.00%12/1/2025 9,745,000 - 890,000 8,855,000 935,000 Series 2005 Sewer 3.25%-5.00%12/1/2025 250,000 - - 250,000 - Series 2007 Sewer 4.00%-5.00%12/1/2016 4,125,000 - 970,000 3,155,000 1,015,000 Series 2007 Parking 4.00%-5.00%12/1/2016 1,100,000 - 110,000 990,000 115,000 Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 16,435,000 - 1,420,000 15,015,000 1,310,000 Series 2008C Sewer 3.00%-5.00% 12/1/2028 2,346,120 - 85,260 2,260,860 88,200 Series 2008D Sewer 3.25%-5.00% 12/1/2016 6,235,000 - 1,655,000 4,580,000 1,760,000 Series 2010B 1.00%-3.30% 12/1/2019 - 1,106,701 - 1,106,701 97,300 Subtotal Business Activity G.O. Debt 40,236,120 1,106,701 5,130,260 36,212,561 5,320,500 Water Revenue Bond Series 1999 4.125-4.375%1/1/2014 1,140,000 - 265,000 875,000 280,000 Water Revenue Bond Series 2002 2.00-3.75%1/1/2012 580,000 - 285,000 295,000 295,000 Subtotal Water Revenue Bonds 1,720,000 - 550,000 1,170,000 575,000 IEPA Loans 2.535-3.59%Various 95,370,544 - 8,311,394 87,059,150 8,131,955 Unamortized bond Premium and discount 13,547 - 1,129 12,418 - Bonds premium liability 1,011,417 - 130,878 880,539 - Compensated absences payable- City 676,704 55,404 48,089 684,019 326,531 IMRF Pension contributions - 786,331 553,213 233,118 - Early Retirement Incentive payable 1,106,701 - 1,106,701 - - OPEB Liability 96,384 36,515 - 132,899 - Subtotal Other Business Activity Liabilities 2,904,753 878,250 1,840,010 1,942,993 326,531 Total Business Debt & Liabilities 140,231,417$ 1,984,951$ 15,831,664$ 126,384,704$ 14,353,986$ Total Governmental & Business Debt & Liabilities 299,249,921$ 41,219,442$ 53,199,003$ 287,270,360$ 30,120,938$ -72- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 161,753,948$ 87,059,150$ Total Business type Activities- IEPA Loan Debt 87,059,150$ 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 Fiscal Year 2011. The total principal and interest remaining to be paid on the bonds is $1,258,719. Principal and interest paid for the current year totaled $621,269 on customer revenues of $6,696,150. 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 $161,753,948 in IEPA loans issued in 1993 through 2009.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 2031. Annual principal and interest on the loans are expected to require $10,264,555 of net revenues for the Fiscal year 2011. The total principal and interest remaining to be paid on the loans is $101,268,700. Principal and interest paid for the current year and total customer net revenues were $10,694,644 and $11,023,889 respectively. -73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 9- LONG-TERM DEBT - Continued B. General Obligation Bonds Payable Year Ending Governmental Activities Business-type Activities December 31 Principal Interest Principal Interest 2011 6,979,500$ 4,355,124$ 5,320,500$ 1,701,641$ 2012 9,131,940 4,608,857 6,058,060 1,451,286 2013 9,568,400 4,333,505 4,271,600 1,157,255 2014 10,618,180 3,983,043 3,306,820 915,289 2015 8,938,240 3,557,412 3,796,760 775,433 2016-2020 38,026,079 12,402,088 12,228,921 1,444,636 2021-2025 26,978,520 4,927,152 711,480 239,852 2026-2029 7,081,580 592,147 518,420 52,672 Total 117,322,439$ 38,759,328$ 36,212,561$ 7,738,064$ 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. On August 16,2010 the City issued taxable Series 2010B in General Obligation bonds for a total of $8,000,000 to pay the City's obligation to the Illinois Municipal Retirement Fund (IMRF) for the Early Retirement Incentive (ERI) plan adopted by the City. The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds. Please note that the City is changing its fiscal year-end and therefore the principal amount due on December 31, 2011 for Governmental Activities does not tie to the Changes in Long-Term Debt summary, Due Within One Year. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. -74- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 9- LONG-TERM DEBT - Continued C. Special Service District Bonds Payable For the Fiscal Year ending Principal Interest 2011 -$ 53,853$ 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$ 335,688$ D. Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follows: For the Fiscal Year ending Principal Interest 2011 -$ 24,672$ 2012 575,000 37,688 2013 290,000 19,688 2014 305,000 6,672 Total 1,170,000$ 88,720$ 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. Governmental Activities 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. 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: -75- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 2011 8,131,955$ 2,132,601$ 2012 8,696,270 2,025,181 2013 8,255,134 1,777,092 2014 7,805,138 1,555,528 2015 7,548,296 1,341,861 2016-2020 29,004,191 4,065,591 2021-2025 14,413,531 1,219,706 2026-2030 3,175,700 91,990 2031-2035 28,935 - Total 87,059,150$ 14,209,550$ 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$ 2003B 2,780,000 Business-type Activities During the fiscal year ended February 28, 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. In 2006, the City defeased a portion of Series 2002C and 2003B 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 February 28, 2011, the following remaining outstanding balances are considered defeased: The outstanding balances of Series 2002C and 2003B, not defeased at February 28, 2011, are recorded as a liability in the City’s financial statements. Those balances are as follows: -76- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 9- LONG-TERM DEBT - Continued G. Post Employment Benefits other than Pensions (Defined Benefit Plan) Annual required contribution 1,047,538$ Interest on net OPEB obligation 51,029 Adjustment to annual required contribution (43,303) Annual OPEB cost 1,055,264 Contributions made (658,187) Increase in net OPEB obligation 397,077 Net OPEB obligation - Beginning of Year 1,133,965 Net OPEB obligation - End of Year 1,531,042$ 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. 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 $334 for single coverage to $1,782 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 $334 for single coverage to $1,782 for family coverage. For fiscal year 2010-11, the City's estimated contribution to the plan is $658,187. The City of Evanston's annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement No.45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Evanston's annual OPEB cost for the year, the amount actually contributed to the plan and changes in the City's net OPEB obligation to the retiree health plan. -77- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 9- LONG-TERM DEBT - Continued G. Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued Percentage of Fiscal Year Annual OPEB Annual OPEB Net OPEB Ended Cost Cost Contributed Liability 2/28/2009 683,740$ 48.42% 683,320$ 2/28/2010 1,041,981 56.75% 1,133,965 2/28/2011 1,055,264 62.37% 1,531,042 Actuarial accrued liability (AAL)12,259,348$ Actuarial value of plan assets - Unfunded Actuarial Accrued Liability (UAAL)12,259,348$ Funded ratio (actuarial value of plan assets/AAL)- Covered payroll (active plan members)51,896,579 UAAL as a percentage of covered payroll 23.62% 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. 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. The funded status of the plan based on the projected valuation results as of March 1st, 2010, was as follows: -78- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 9- LONG-TERM DEBT - Continued G. Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued H. Capital Leases Amount Total minimum lease payments for fiscal year ending 2011 383,764$ Less: amount representing interest (20,005) Present value of minimum lease payments 363,759$ The City has entered into lease agreements as lessee for financing the acquisition of Accela Systems for Permit records. These lease agreements qualify as capital leases for accounting purposes and, therefore the assets and obligations have been recorded at the present value of the future minimum lease payments as of February, 28 2011. At February 28, 2011 $708,552 of amounts included in capital assets were acquired via capital leases. The obligation for the capital leases will be repaid from the Governmental Funds. The future minimum lease obligations and the net present value of these minimum lease payments as of February 28, 2011 are as follows: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of calculations. In the March 1, 2009 actuarial valuation, the entry age normal cost method was used. The actuarial assumptions include a 4.50 percent investment rate of return and an annual healthcare cost trend date of 8.50 percent initially, reduced by decrements to an ultimate rate of 3.50 percent after 10 years. Both rates include a 3 percent price inflation assumption. The actuarial value of retiree health plan assets was determined using techniques that spread the effects of short term volatility in the market value of investments over a three year period. Retiree health plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period at March 1, 2011, was 30 years. -79- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 10. FUND EQUITY A. Restrictions of Net Assets - Water Fund B. Restricted Net Assets - Fiduciary Funds Fiduciary Funds Firefighters' Pension Fund Restriction for employee pension benefits 54,358,822$ Police Pension Fund Restriction for employee pension benefits 72,465,514 Total Fiduciary Funds 126,824,336$ 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 $400,000, the excess can be transferred to any other account within the Water Fund. All proceeds received from the disposition of any property shall be credited to this account. Bond and Interest Account - All amounts required to be set aside for the purpose of paying principal and interest of outstanding Water Revenue bonds shall be set aside monthly as directed. In addition, there shall be credited monthly an amount at least equal to the sum of one-fifth of the interest becoming due on the next interest payment date and one-tenth of the aggregate yearly amount of principal due on the next principal maturity date. -80- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 10. FUND EQUITY - Continued C. Reservations of Fund Equity General Fund Reserved for Arts Council 15,225$ Reserved for private elm trees 114,388 Reserved for Dutch elm inoculation 513,216 Reserved for Butterfield sculpture 30,883 Reserved for scholarship contributions 27,553 Reserved for public library acquisitions 248,840 Reserved for recreation group activities 207,123 Reserved for youth initiative 42,151 Reserved for parks and recreation 227,394 Other reserves 568,103 Total General Fund 1,994,876 Special Revenue Funds Reserved for HUD approved Projects 410,000 Reserved for notes receivable 6,002,308 Total Special Revenue Funds 6,412,308 Debt Service Funds Reserved for debt service 22,325,817 Total Reserved Fund Equity - Governmental Funds 30,733,001$ Reservations are used to segregate portions of fund equity which are either legally restricted for specific purposes are not "available spendable resources." The following reservations are reported: -81- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 10. FUND EQUITY - Continued D. Unrestricted Fund Equity - Designated The City has designated certain amounts of unrestricted fund equity for the following purposes: General Fund IMRF - Pension 2,590,000$ Compensated Absences 2,576,360 Capital projects to be financed in a future period 260,553 Total General Fund 5,426,913 Special Revenue Funds Specific capital projects Motor Fuel Tax 682,090 Library Endowment 3,152,078 Neighborhood Improvement 10,000 Total Special Revenue Funds 3,844,168 Capital Projects Funds Specific capital projects Capital Improvements 5,905,344 Special Assessment 3,759,954 Total Capital Projects Funds 9,665,298 Unrestricted Fund Equity - Designated 18,936,379$ -82- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 $395,918 which includes a loss & cost amount of $7,918. The ordinance also authorized the City to enter into an agreement with DOWNTOWN EVANSTON, an Illinois not-for- profit corporation to plan, implement, and manage the district. -83- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 12. RISK MANAGEMENT - CLAIMS AND JUDGMENTS The changes in the balances of claims liabilities during the past two fiscal years are as follows: Workers’ General Compensation Liability Total February 28, 2009 4,264,337$ 1,094,263$ 5,358,600$ New claims and/or estimate revisions 1,286,387 (186,225) 1,100,162 Claims payments (1,008,644) (276,750) (1,285,394) 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$ 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 is purchased from a commercial insurance company. For general liability claims, the City retains risk of loss. Only one case has exceeded the amount of insurance coverage in the past three years. 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. -84- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 13. CONTINGENCIES NOTE 14. JOINT VENTURES A. Solid Waste Agency of Northern Cook County 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. 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. 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. -85- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 14. JOINT VENTURES – Continued A. Solid Waste Agency of Northern Cook County - Continued Summary of Financial Position as of April 30, 2010: Current assets 5,277,771$ Property, plant, and equipment 11,704,309 Debt issuance costs, net and other assets 100,676 Total assets 17,082,756$ Current liabilities 4,162,145$ Long-term debt, net of unamortized discount 4,822,573 Invested in capital assets, net of related debt 5,761,736 Restricted net assets 589,394 Unrestricted net assets 1,746,908 Total liabilities and fund equity 17,082,756$ Summary of Revenues and Expenses for the Year Ended April 30, 2010: Total revenues 14,435,104$ Total expenses (13,901,961) Net income 533,143$ 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. -86- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 14. JOINT VENTURES – Continued B. Evanston Housing Corporation Statement of Financial Position as of December 31, 2009: Cash and cash equivalents 857,758$ Mortgage loans receivable 2,361,879 Total assets 3,219,637 Payables and accrued expenses 155,637 Notes payable 3,064,000 Total liabilities 3,219,637 Net Assets -$ (Note: December 31, 2009 is the most current information available.) 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. The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2009 are summarized as follows: The City of Evanston has advanced $639,000 to the corporation under the notes due on or before November 30, 2034. The notes bear no interest. However, the City is entitled to a certain net sales consideration upon the sale or exchange of the mortgaged property, as well as a prorated portion of the investment income earned on the funds not loaned to mortgagees. -87- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 14. JOINT VENTURES – Continued B. Evanston Housing Corporation - Continued Statement of Activities for the Year Ended December 31, 2009: Total revenues 128,071$ Total operating expenses (128,071) Excess of revenues over expenses -$ (Note: December 31, 2009 is the most current information available.) NOTE 15. DEFERRED COMPENSATION PLAN Plan balance at February 28, 2011 38,600,938$ 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 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 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. -88- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund A. Plan Description 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, which is when the revenue is recognized. The City created a special revenue fund, the Employer Pension Contribution Fund, to accommodate the 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. Last year, 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. 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 8.51% 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. -89- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 12/31/10 4,914,570$ 70%1,456,988$ 12/31/09 2,702,269 100%- 12/31/08 2,574,448 100%- The City’s gross total payroll for the calendar year ended December 31, 2010 was $60,425,596. Of this amount, $32,163,415 in payroll earnings were reported to and covered by the IMRF system. The Township’s total payroll for the year ended December 31, 2009 was $330,215 which were reported to and covered by the IMRF plan. As of December 31, 2010, the most recent actuarial valuation date, the City's Regular plan was 76.71% funded. The City's actuarial accrued liability for benefits was $80,396,511 and the actuarial value of assets was $61,673,349 resulting in an underfunded actuarial accrued liability (UAAL) of $18,723,162. The covered payroll for calendar year 2010 (annual payroll of active employees covered by the plan) was $32,163,415 and the ratio of the UAAL to the covered payroll was 58%. As of December 31, 2009, the most recent valuation date, the Township's Regular plan was fully funded. The Township's actuarial accrued liability for benefits was $380,918 and the actuarial value of assets was $476,660 resulting in an overfunding of $95,742. The covered payroll for calendar year 2009 (annual payroll of active employees covered by the plan) was $330,215. 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, 2010, the City’s annual pension cost of $4,914,570 was equal to the City’s required and actual contributions. The required contribution was determined as part of the December 31, 2008 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.5% investment rate of return (net of administrative expenses), (b) projected salary increases of 4% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year, depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3% annually. The actuarial value of IMRF assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor. -90- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS – Continued Illinois Municipal Retirement Fund - Continued C. Annual Pension Cost - Continued Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/09 12,053$ 100%-$ 12/31/08 13,371 100%- 12/31/07 20,253 100%- Police and Firefighters' Pension Plans D. Plan Descriptions 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 - 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 year ended February 28, 2011 was $13,117,000 and $9,133,000 respectively. For December 31, 2009, the Township’s annual pension cost of $12,053 was equal to the Township’s required and actual contributions. The required contribution was determined as part of the December 31, 2007 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 15% corridor. The actuarial assumptions used to determine the actuarial accrued liability for 2010 are based on the 2007-2009 experience study. -91- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS – Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions - Continued Participation in the plans at February 28, 2011 was: Police Firefighters' Retirees, disabled participants, and beneficiaries of 167 138 deceased retirees currently receiving benefits Active plan members 157 104 Total 324 242 Police Firefighters' Pension Fund Pension Fund Actuarial assumptions: Investment rate of return 7.00%7.00% Projected salary increases 5.00%5.00% Attributable to inflation 3.50%3.50% 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. -92- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 Last year, 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. 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. 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. -93- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2011 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued F. Contributions and Reserves Police Firefighters' Annual required contribution 8,831,924$ 7,148,759$ Interest on net pension obligation 758,550 503,082 Adjustment to annual required contribution (656,707) (435,539) Annual pension cost 8,933,767 7,216,302 Contributions made (7,254,351) (5,937,637) Increase (decrease) in net pension obligation 1,679,416 1,278,665 Net pension obligation at March 1, 2010 10,836,432 7,186,892 Net pension obligation at March 1, 2011 12,515,848$ 8,465,557$ 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 March 1, 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. -94- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 Year Ended Cost (APC)APC Contributed Obligation Police 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 2/28/07 4,728,814 99.62 8,639,014 Firefighters'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 2/28/07 4,234,574 93.89 5,927,461 2/28/06 3,973,339 104.44 5,383,088 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 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. -95- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 2,623,744$ 4,385,351$ 7,009,095$ Receivables Accrued interest 44,993 217,149 262,142 Due from other funds 2,757,955 3,354,067 6,112,022 Total Receivables 2,802,948 3,571,216 6,374,164 Investments, at fair value U.S. Government obligations 8,609,568 36,009,348 44,618,916 Common stock 11,366,758 11,316,009 22,682,767 Mutual funds 28,957,856 17,186,689 46,144,545 Total Investments 48,934,182 64,512,046 113,446,228 Total Assets 54,360,874 72,468,613 126,829,487 Liabilities Vouchers payable 1,900 3,099 4,999 Due to other funds 152 - 152 Total Liabilities 2,052 3,099 5,151 Net assets held in trust for pension benefits 54,358,822$ 72,465,514$ 126,824,336$ -96- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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 5,937,637$ 7,254,256$ 13,191,893$ Plan members 786,615 1,233,021 2,019,636 Other-Donations, Legal Sett., Surplus Sales - 95 95 Total Contributions 6,724,252 8,487,372 15,211,624 Investment income Net appreciation (depreciation) in fair value of investments 3,714,273 5,375,088 9,089,361 Interest 567,829 1,568,419 2,136,248 Total investment income 4,282,102 6,943,507 11,225,609 Less investment expense 171,116 157,470 328,586 Net investment income 4,110,986 6,786,037 10,897,023 Total Additions 10,835,238 15,273,409 26,108,647 Deductions Benefits 6,262,733 8,040,888 14,303,621 Refunds of contributions - 149,950 149,950 Administrative expense 54,039 66,763 120,802 Total Deductions 6,316,772 8,257,601 14,574,373 Net increase 4,518,466 7,015,808 11,534,274 Net assets held in trust for pension benefits Beginning of year 49,840,356 65,449,706 115,290,062 End of year 54,358,822$ 72,465,514$ 126,824,336$ -97- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 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, 2010 March 1, 2010 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 4-year smoothed mkt. 4-year smoothed mkt. 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: -98- REQUIRED SUPPLEMENTARY INFORMATION -99- 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 3/1/2010 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 3/1/2010 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) 12/31/2010 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) 12/31/2009 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 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. February 28, 2011 Actuarial Accrued Liability (AAL) Projected Unit Credit (b) Unfunded AAL (UAAL) (b-a) -100- 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 2010 7,148,759$ N/A N/A 8,831,924$ N/A N/A 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% 2001 2,209,466 2,324,407 105.20% 2,990,038 3,038,432 101.62% Note: See notes to Required Supplementary Information and Auditors' Report. Firefighters' Pension Fund Police Pension Fund February 28, 2011 -101- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Required Supplementary Information Year ended February 28, 2011 Original & Final Budget Actual Variance Revenues Taxes 39,380,300$ 39,430,313$ 50,013$ Licenses and permits 8,312,400 8,661,398 348,998 Intergovernmental 15,434,500 15,745,906 311,406 Charges for services 9,479,900 9,785,836 305,936 Fines 4,403,500 4,002,700 (400,800) Investment income 100,000 11,454 (88,546) Miscellaneous 4,353,900 5,987,365 1,633,465 Total Revenues 81,464,500 83,624,972 2,160,472 Expenditures General management and support 21,623,298 21,954,654 (331,356) Public safety 34,101,652 35,258,964 (1,157,312) Public works 14,518,121 12,618,308 1,899,813 Health and human resource development 3,607,852 3,700,431 (92,579) Recreation and cultural opportunities 17,930,800 17,390,458 540,342 Housing and economic development 3,320,919 2,952,803 368,116 Total Expenditures 95,102,642 93,875,618 1,227,024 (Deficiency) of Revenues (under) Expenditures (13,638,142) (10,250,646) 3,387,496 Other Financing Sources (Uses) Operating transfers in (out) West Evanston TIF 24,996 24,996 - Motor Fuel Tax Fund 772,500 772,500 - Economic Development Fund 390,000 390,000 - Housing Fund 24,000 24,000 - Washington National TIF Debt Service Fund 324,996 324,996 - Howard Hartrey Debt Service 141,600 141,600 - Southwest TIF I Debt Service Fund 24,096 24,096 - Howard Ridge TIF 120,396 120,396 - Capital Improvement Fund 300,000 300,000 - Water Fund 3,286,800 3,286,800 - Issuance of debt 6,893,299 6,893,299 - Premiums and discounts 3,023 3,023 - Accrued interest 7,355 7,355 - 12,313,061 12,313,061 - Net Change in Fund Balance (1,325,081)$ 2,062,415 3,387,496$ Fund Balance Beginning of year 27,976,648 End of year 30,039,063$ Note: See notes to Required Supplementary Information and Auditors' Report. -102- 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 83,378,760$ Increase (decrease) due to budgeting property taxes as revenue in the year of levy 246,212 Budgetary Basis Revenues 83,624,972$ Expenditures GAAP basis expenditures as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances 93,875,618$ Increase (decrease) due to changes in Emcumbrances - Budgetary Basis Expenditures 93,875,618$ 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 year ended February 28, 2011 on the GAAP basis to the budgetary basis are presented below: -103- GOVERNMENTAL FUND TYPES -104- 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. 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 negihborhoods that have been negatively impacted by high numbers of foreclosed and vacant homes. Economic Development - to account for cost associated with economic development activities of the City. Financing is provided primarily by real estate transfer 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. Continued -105- Township Funds Town - to account for general adminstrative services. Debt Service funds are used to account for the servicing of general long-term debt. General Obligation Debt - accumulated monies for the principal and interest payments on general obligation 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 -106- 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 865,277$ 2,425,371$ 1,303,357$ 453,785$ 69,915$ Investments - - - 2,696,637 - Receivables Property taxes (net of allowance) Current year levy - - - - - Notes - - - - - Allowance - - - - - Special assessments - - - - - Accrued interest - - - 1,656 - Other - 36,541 169,094 - - Property held for resale - - - - - Prepaid items - - - - - Due from other governments 139,283 - - - - Due from other funds - - - - 20,000 Total Assets 1,004,560$ 2,461,912$ 1,472,451$ 3,152,078$ 89,915$ Liabilities Vouchers payable 74$ 16,415$ 59,602$ -$ -$ Other - - - - - Due to other governments - - - - - Due to other funds - 22,295 18,019 - - Deferred revenues 322,396 - - - - Total Liabilities 322,470 38,710 77,621 - - Fund Balances Reserved for notes receivable - - - - - Reseved for debt service - - - - - Reserved for HUD Approved Projects - - - - - Unreserved Designated 682,090 - - 3,152,078 10,000 Undesignated - 2,423,202 1,394,830 - 79,915 Total Fund Balances 682,090 2,423,202 1,394,830 3,152,078 89,915 Total Liabilities and Fund Balances 1,004,560$ 2,461,912$ 1,472,451$ 3,152,078$ 89,915$ Liabilities and Fund Balances Assets February 28, 2011 -107- Special Revenue Special Community Community Neighborhood Service Total Affordable Development Development Stabilization District City Housing HOME Block Grant Loan Program 2 No. 4 Funds 439,738$ 26,625$ 89,947$ 58,681$ 3,176$ 5,431$ 5,741,303$ - - - - - - 2,696,637 - - - - - 386,864 386,864 1,451,662 2,586,776 24,799 2,029,071 - - 6,092,308 - - (12,000) (78,000) - - (90,000) - - - - - - - - - - - - - 1,656 262,476 - - - - - 468,111 - - 410,000 - - - 410,000 - - 1,012 - - - 1,012 - 30,499 83,545 - 329,045 - 582,372 150,000 - - 6,741 - - 176,741 2,303,876$ 2,643,900$ 597,303$ 2,016,493$ 332,221$ 392,295$ 16,467,004$ 4,723$ -$ 99,280$ 6,739$ 327,366$ -$ 514,199$ - - - 4,628 - - 4,628 - - - 404 991 - 1,395 - 7,369 75,224 - 3,864 84,762 211,533 - - - - - 195,208 517,604 4,723 7,369 174,504 11,771 332,221 279,970 1,249,359 1,451,662 2,586,776 12,799 1,951,071 - - 6,002,308 - - - - - - - - - 410,000 - - - 410,000 - - - - - - 3,844,168 847,491 49,755 - 53,651 - 112,325 4,961,169 2,299,153 2,636,531 422,799 2,004,722 - 112,325 15,217,645 2,303,876$ 2,643,900$ 597,303$ 2,016,493$ 332,221$ 392,295$ 16,467,004$ Continued -108- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued February 28, 2011 and March 31, 2010 for City and Township respectively Total Total General Township Special Town Assistance Funds Revenue Cash and equivalents 511,725$ 1,571,150$ 2,082,875$ 7,824,178$ Investments - - - 2,696,637 Receivables Property taxes (net of allowance) Current year levy 145,039 513,139 658,178 1,045,042 Notes - - - 6,092,308 Allowance - - - (90,000) Special assessments - - - - Accrued interest - - - 1,656 Other 10,483 231 10,714 478,825 Property held for resale - - - 410,000 Prepaid items - - - 1,012 Due from other governments - - - 582,372 Due from other funds - 7,185 7,185 183,926 Total Assets 667,247$ 2,091,705$ 2,758,952$ 19,225,956$ Liabilities Vouchers payable 18,886$ 23,289$ 42,175$ 556,374$ Other - - - 4,628 Due to other governments - - - 1,395 Due to other funds 7,185 - 7,185 218,718 Deferred revenues 133,969 474,381 608,350 1,125,954 Total Liabilities 160,040 497,670 657,710 1,907,069 Fund Balances Reserved for notes receivable - - - 6,002,308 Reseved for debt service - - - - Reserved for HUD Approved Projects - - - 410,000 Unreserved Designated - - - 3,844,168 Undesignated 507,207 1,594,035 2,101,242 7,062,411 Total Fund Balances 507,207 1,594,035 2,101,242 17,318,887 Total Liabilities and Fund Balances 667,247$ 2,091,705$ 2,758,952$ 19,225,956$ Assets Special Revenue Liabilities and Fund Balances -109- Howard Washington Howard West Special Southwest Hartrey National Ridge Evanston General Service Tax Tax Tax Tax Tax Total Obligation District Increment Increment Increment Increment Increment Debt Debt No.5 District District District District District Service 467,341$ 11,670$ 150,767$ 4,565,268$ 6,742,354$ 567,710$ 1,040,510$ 13,545,620$ - - - - - - - - 10,655,302 429,746 437,734 1,039,086 4,352,962 409,306 426,691 17,750,827 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9,762 - 75,000 - - - 84,762 11,122,643$ 451,178$ 588,501$ 5,679,354$ 11,095,316$ 977,016$ 1,467,201$ 31,381,209$ -$ -$ -$ -$ 3,485$ 5,485$ -$ 8,970$ - - - - - - - - - - - - - - - - - - - - - - - - 5,813,579 212,756 191,004 467,589 1,929,155 219,581 212,758 9,046,422 5,813,579 212,756 191,004 467,589 1,932,640 225,066 212,758 9,055,392 - - - - - - - - 5,309,064 238,422 397,497 5,211,765 9,162,676 751,950 1,254,443 22,325,817 - - - - - - - - - - - - - - - - - - - - - - - - 5,309,064 238,422 397,497 5,211,765 9,162,676 751,950 1,254,443 22,325,817 11,122,643$ 451,178$ 588,501$ 5,679,354$ 11,095,316$ 977,016$ 1,467,201$ 31,381,209$ Debt Service Continued -110- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Special Total Assessment Nonmajor Capital Governmental Projects Funds Cash and equivalents 3,728,954$ 25,098,752$ Investments - 2,696,637 Receivables Property taxes (net of allowance) Current year levy - 18,795,869 Notes - 6,092,308 Allowance - (90,000) Special assessments 862,381 862,381 Accrued interest - 1,656 Other - 478,825 Property held for resale - 410,000 Prepaid items - 1,012 Due from other governments - 582,372 Due from other funds 31,738 300,426 Total Assets 4,623,073$ 55,230,238$ Liabilities Vouchers payable 738$ 566,082$ Other - 4,628 Due to other governments - 1,395 Due to other funds - 218,718 Deferred revenues 862,381 11,034,757 Total Liabilities 863,119 11,825,580 Fund Balances Reserved for notes receivable - 6,002,308 Reseved for debt service - 22,325,817 Reserved for HUD Approved Projects - 410,000 Unreserved Designated 3,759,954 7,604,122 Undesignated - 7,062,411 Total Fund Balances 3,759,954 43,404,658 Total Liabilities and Fund Balances 4,623,073$ 55,230,238$ Liabilities and Fund Balances Assets February 28, 2011 Concluded -111- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances Year ended February 28, 2011 Emergency Motor Economic Telephone Library Neighborhood Fuel Tax Development System Endowment Improvement Revenues Taxes -$ 1,539,970$ 1,011,894$ -$ 20,000$ Special assessments - - - - - Intergovernmental 1,880,012 - - - - Investment income 1,614 591 974 433,821 - SSI reimbursement - - - - - Medical reimbursement - - - - - Miscellaneous 2,108 12,463 - 39,806 - Total Revenues 1,883,734 1,553,024 1,012,868 473,627 20,000 Expenditures Current General management and support - - - - - Public safety - - 1,821,835 - - Public works 1,223,580 - - - - Health and human resource development - - - - - Recreation and cultural opportunities - - - 293 - Housing and economic development - 747,437 - - 5,397 Debt service Principal - - - - - Interest - - - - - Fiscal agent fees - - - - - Capital outlay - - - - - Total Expenditures 1,223,580 747,437 1,821,835 293 5,397 Excess (Deficiency) of Revenues Over (Under) Expenditures 660,154 805,587 (808,967) 473,334 14,603 Other Financing Sources (Uses) Transfers in (out) General (772,500) (390,000) - - - Town - - - - - General Assistance - - - - - General Obligation Debt Service - - - - - Washington Natl. Tax Increment Dist. CIP - - - - - Special Assesstment Capital Project - - - - - Motor Vehicle Parking System - - - - - Total Other Financing Sources (Uses)(772,500) (390,000) - - - Net Change in Fund Balances (112,346) 415,587 (808,967) 473,334 14,603 Fund Balances -Beginning of Year 794,436 2,007,615 2,203,797 2,678,744 75,312 Fund Balances - End of Year 682,090$ 2,423,202$ 1,394,830$ 3,152,078$ 89,915$ Special Revenue Continued -112- Special Community Community Neighborhood Service Total Affordable Development Development Stabilization District City Housing HOME Block Grant Loan Program 2 No. 4 Funds -$ -$ -$ -$ -$ 217,097$ 2,788,961$ - - - - - - - - 663,318 1,971,590 56,361 4,205,637 - 8,776,918 1,098 7,490 - 9,453 - 35 455,076 - - - - - - - - - - - - - - 207,037 - 37,787 - - - 299,201 208,135 670,808 2,009,377 65,814 4,205,637 217,132 12,320,156 - - - - - - - - - - - - - 1,821,835 - - - - - - 1,223,580 - - - - - - - - - - - - - 293 111,076 83,141 2,009,377 35,574 4,205,637 378,216 7,575,855 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 111,076 83,141 2,009,377 35,574 4,205,637 378,216 10,621,563 97,059 587,667 - 30,240 - (161,084) 1,698,593 (24,000) - - - - - (1,186,500) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (24,000) - - - - - (1,186,500) 73,059 587,667 - 30,240 - (161,084) 512,093 2,226,094 2,048,864 422,799 1,974,482 - 273,409 14,705,552 2,299,153$ 2,636,531$ 422,799$ 2,004,722$ -$ 112,325$ 15,217,645$ Special Revenue Continued -113- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances - Continued Total Total General Township Special Town Assistance Funds Revenue Revenues Taxes 367,269$ 1,217,254$ 1,584,523$ 4,373,484$ Special assessments - - - - Intergovernmental 56,596 - 56,596 8,833,514 Investment income 640 1,431 2,071 457,147 SSI reimbursement - 20,197 20,197 20,197 Medical reimbursement - 125 125 125 Miscellaneous - - - 299,201 Total Revenues 424,505 1,239,007 1,663,512 13,983,668 Expenditures Current General management and support 519,818 937,570 1,457,388 1,457,388 Public safety - - - 1,821,835 Public works - - - 1,223,580 Health and human resource development - - - - Recreation and cultural opportunities - - - 293 Housing and economic development - - - 7,575,855 Debt service Principal - - - - Interest - - - - Fiscal agent fees - - - - Capital outlay - - - - Total Expenditures 519,818 937,570 1,457,388 12,078,951 Excess (Deficiency) of Revenues Over (Under) Expenditures (95,313) 301,437 206,124 1,904,717 Other Financing Sources (Uses) Transfers in (out) General - - - (1,186,500) Town - (290) (290) (290) General Assistance 290 - 290 290 General Obligation Debt Service - - - - Washington Natl. Tax Increment Dist. CIP - - - - Special Assesstment Capital Project - - - - Motor Vehicle Parking System - - - - Total Other Financing Sources (Uses)290 (290) - (1,186,500) Net Change in Fund Balances (95,023) 301,147 206,124 718,217 Fund Balances -Beginning of Year 602,230 1,292,888 1,895,118 16,600,670 Fund Balances - End of Year 507,207$ 1,594,035$ 2,101,242$ 17,318,887$ Year Ended February 28, 2011 and March 31, 2010 for City and Township respectively Special Revenue Continued -114- Howard Washington Howard West Special Southwest Hartrey National Ridge Evanston General Service Tax Tax Tax Tax Tax Total Obligation District Increment Increment Increment Increment Increment Debt Debt No.5 District District District District District Service 9,642,473$ 395,214$ 330,136$ 883,463$ 4,887,915$ 248,025$ 422,698$ 16,809,924$ - - - - - - - - - - - - - - - - 700 44 12 1,549 27,588 239 1,060 31,192 - - - - - - - - - - - - - - - - - - - - - 1,126 - 1,126 9,643,173 395,258 330,148 885,012 4,915,503 249,390 423,758 16,842,242 71,197 - - - - - - 71,197 - - - - - - - - - - - - 88,362 - - 88,362 - - 840,523 - - - - 840,523 - - - - - - - - - - - 785 6,580 495,246 313,727 816,338 6,149,740 315,000 - 535,000 305,000 - - 7,304,740 4,407,988 125,975 - 170,483 134,366 - - 4,838,812 12,248 - - - - - - 12,248 - - - - - - - - 10,641,173 440,975 840,523 706,268 534,308 495,246 313,727 13,972,220 (998,000) (45,717) (510,375) 178,744 4,381,195 (245,856) 110,031 2,870,022 - - (24,096) (141,600) (324,996) - (24,996) (515,688) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (120,396) - (120,396) 317,664 - - - - - - 317,664 - - - - (3,385,896) - - (3,385,896) 317,664 - (24,096) (141,600) (3,710,892) (120,396) (24,996) (3,704,316) (680,336) (45,717) (534,471) 37,144 670,303 (366,252) 85,035 (834,294) 5,989,400 284,139 931,968 5,174,621 8,492,373 1,118,202 1,169,408 23,160,111 5,309,064$ 238,422$ 397,497$ 5,211,765$ 9,162,676$ 751,950$ 1,254,443$ 22,325,817$ Debt Service Continued -115- 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 -$ 21,183,408$ Special assessments 429,487 429,487 Intergovernmental - 8,833,514 Investment income 6,005 494,344 SSI reimbursement - 20,197 Medical reimbursement - 125 Miscellaneous 4 300,331 Total Revenues 435,496 31,261,406 Expenditures Current General management and support 774 1,529,359 Public safety - 1,821,835 Public works - 1,311,942 Health and human resource development - 840,523 Recreation and cultural opportunities - 293 Housing and economic development - 8,392,193 Debt service Principal - 7,304,740 Interest - 4,838,812 Fiscal agent fees - 12,248 Capital outlay 190,932 190,932 Total Expenditures 191,706 26,242,877 Excess (Deficiency) of Revenues Over (Under) Expenditures 243,790 5,018,529 Other Financing Sources (Uses) Transfers in (out) General - (1,702,188) Town - (290) General Assistance - 290 General Obligation Debt Service (317,664) (317,664) Washington Natl. Tax Increment Dist. CIP - (120,396) Special Assesstment Capital Project - 317,664 Motor Vehicle Parking System - (3,385,896) Total Other Financing Sources (Uses)(317,664) (5,208,480) Net Change in Fund Balances (73,874) (189,951) Fund Balances -Beginning of Year 3,833,828 43,594,609 Fund Balances - End of Year 3,759,954$ 43,404,658$ Year ended February 28, 2011 Concluded -116- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2011 Original and Final Budget Actual Variance Taxes Property Current year levy 16,349,600$ 15,898,788$ (450,812)$ Prior year levy 200,000 260,557 60,557 Total Property Taxes 16,549,600 16,159,345 (390,255) Personal Property Replacement Tax 676,500 740,819 64,319 Other Taxes State Use Tax 1,095,000 1,060,610 (34,390) Sales Tax - Home Rule 5,520,000 5,724,904 204,904 Auto Rental Tax 35,000 36,445 1,445 Athletic Contest Tax 650,000 646,337 (3,663) Utility Tax 8,484,000 7,872,181 (611,819) Cigarette Tax 485,000 440,103 (44,897) Evanston Motor Fuel Tax 450,000 558,024 108,024 Liquor Tax 2,050,000 2,070,063 20,063 Parking Tax 1,785,000 2,330,876 545,876 Amusement Tax 200 424 224 Real Estate TransferTax 1,600,000 1,790,182 190,182 Total Other Taxes 22,154,200 22,530,149 375,949 Total Taxes 39,380,300 39,430,313 50,013 Continued -117- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2011 Original and Final Budget Actual Variance Licenses and Permits Vehicle Licenses 2,700,000$ 2,598,341$ (101,659)$ Business Licenses 171,000 102,264 (68,736) Pet Licenses 45,000 24,000 (21,000) Contractor Licenses 80,000 76,050 (3,950) Rooming House Licenses 193,200 182,936 (10,264) Liquor Licenses 370,500 347,475 (23,025) One Day Liquor Licenses - 5,953 5,953 Farmer's Market Licenses 28,000 12,860 (15,140) Rental building register 146,000 70,340 (75,660) Other Licenses 17,000 21,265 4,265 Long Term Care License 112,400 113,700 1,300 Seasonal Food estb - 1,547 1,547 Mobile food vehicle - 750 750 Hen coop lic - 200 200 Resident Care home License 500 460 (40) Building Permits 2,200,000 2,702,810 502,810 Plumbing Permits 110,000 117,574 7,574 Electrical Permits 120,000 124,174 4,174 Signs and Awnings 10,000 6,712 (3,288) Other /Misc Permits 220,000 225,916 5,916 Elevator Permits 50,000 20,919 (29,081) Heating Vent / AC Permits 200,000 323,351 123,351 Right of Way Permits 160,000 213,600 53,600 Residents Parking Permit 150,000 126,530 (23,470) Visitor Parking Permit 14,300 12,246 (2,054) Fire supression / Alarm Permit - 20,588 20,588 Annual Sign Fees 25,000 30,340 5,340 Plat PR. & Sign Approval HRG Fees 2,500 1,320 (1,180) Alarm Panel Francise Fee 5,000 9,255 4,255 Northwestern / Centel Easement 27,000 47,000 20,000 Cable Franchise Fee 890,000 862,650 (27,350) PEG Fees - COMCAST - 105,108 105,108 Nicor Franchise Fee 95,000 79,684 (15,316) Solid Waste Franchise Fee 170,000 73,480 (96,520) Total Licenses and Permits 8,312,400 8,661,398 348,998 Continued -118- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2011 Original and Final Budget Actual Variance Intergovernmental - Revenue from Other Agencies Retailer and Service Occupation Tax 8,914,000$ 8,791,573$ (122,427)$ State Income Tax 5,717,000 5,808,360 91,360 State Highway Maintenance 93,400 69,146 (24,254) Full Circle grant - 6,474 6,474 H1N1 Grant - 26,833 26,833 Health Department Basic Serv. Grant 76,000 39,048 (36,952) Dental Sealant Grant 2,000 721 (1,279) Summer Food Inspections 400 450 50 Kid Care Agreement - 2,520 2,520 Illinois Tobacco Free Community 21,900 1,750 (20,150) Teen Pregnancy Prevension Grant 60,600 45,900 (14,700) Childhood Lead Poisoning Grant 500 720 220 Teen Parent Services Program 30,600 12,769 (17,831) Other State / County Grant 22,500 28,915 6,415 Tanning Parlor Inspection 100 - (100) Fire Department Training 9,000 1,115 (7,885) CRI Grant 40,000 11,642 (28,358) PHEP Grant 70,000 31,027 (38,973) State Recycling Grant - 60,000 60,000 Summer Youth - 15,167 15,167 Leadbase Paint Control Grant 180,000 8,000 (172,000) Federal Grant / Aid 33,200 601,857 568,657 Commission on Aging Grant - Advocate 37,000 33,576 (3,424) Civil Defence Grants (F.E.M.A.)24,000 38,116 14,116 Police Training 8,000 8,000 - HUD Emergency Shelter Grant 86,000 85,729 (271) Law Enforcement Block Grant - 8,178 8,178 Other Federal Aid 8,300 8,320 20 Total Intergovernmental - Revenue from Other Agencies 15,434,500 15,745,906 311,406 Continued -119- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2011 Original and Final Budget Actual Variance Charges for Services Recreation Recreation - program 4,824,600$ 5,155,391$ 330,791$ Recreation - unreconciled 40,000 69,857 29,857 Total Recreation 4,864,600 5,225,248 360,648 Library State Per Capita Grant 75,400 75,805 405 Library Video Rental 39,400 31,706 (7,694) Non-Residents Card 1,800 2,400 600 Library Material Replacement Charged 17,000 12,587 (4,413) Library Miscellaneous Revenues 2,800 428 (2,372) Library Copy Machines Charges 25,000 22,652 (2,348) Library Meeting Room Rental 11,500 9,932 (1,568) North Branch Rental Inc.34,700 33,396 (1,304) Total Library 207,600 188,906 (18,694) Charges for Services Other Service Charges Birth and Death Records - 5,447 5,447 Sanitation Classes 7,000 4,850 (2,150) Dental Clinic Fees 130,000 149,127 19,127 Health Clinic Fees - Food Establishment 180,000 189,968 9,968 Dental Check up - 2,375 2,375 Emergency Dental Exam - 30 30 Amalgam Filling - 30 30 Dental Co-Pay - 45 45 Resin Filling - 1,500 1,500 Extraction - 120 120 Root Canal Payment - 175 175 Sealant Office Visit - 230 230 Additional Sealant - 10 10 Temporary License Fee 6,500 8,438 1,938 Food Delivery Vehicle 6,000 4,850 (1,150) Scavenger Truck 300 - (300) Beverage Snack Vending Machine 30,000 30,559 559 Tobacco License 20,000 20,500 500 BeeKeeper License - 75 75 Home Day Care License 5,500 - (5,500) Birth Certificate 80,000 66,115 (13,885) Dealth Certificate - 16 . 23 69,000 34,094 (34,906) Funeral Director License 6,600 7,350 750 Continued -120- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2011 Original and Final Budget Actual Variance Charges for Services - Continued Other Service Charges - Continued Temp Funeral Direct License 5,000$ 5,526$ 526$ SWANCC Recycling 150,000 56,406 (93,594) Recycling Service Charged 2,192,400 2,261,231 68,831 Recycling Service Charge - Penalty 20,000 37,569 17,569 Sanitation Special Pickup Fees 80,000 83,399 3,399 Weights & Measures Examinations 1,000 345 (655) Senior Taxi Coupon Sales 105,000 96,717 (8,283) Fire Cost Recovery Charge 10,000 2,545 (7,455) Other Services Charges - 693 693 Condo Conversion Application Fee - 16,650 16,650 Historic preservation 8,900 6,075 (2,825) Ambulance Service 985,000 973,482 (11,518) Towing Charges 3,000 - (3,000) Police Report Fees 16,000 15,794 (206) Wood Recycling 24,000 34,830 10,830 Zoning Fees 40,000 45,378 5,378 Fire Report Fees 1,500 462 (1,038) Fire Building inspections 10,000 5,265 (4,735) Alarm Panel Subscription Fees 150,000 133,405 (16,595) Skokie Animal Board Fee 7,500 8,085 585 Background Check Daycare Prov.- 540 540 New Pavement Degradation 50,000 55,518 5,518 Plan Review 7,500 5,879 (1,621) Total Other Service Charges 4,407,700 4,371,682 (36,018) Total Charges for Services 9,479,900 9,785,836 305,936 Fines Ticket Fines - Parking 3,500,000 3,172,985 (327,015) False Alarm and Other Fines 435,000 196,674 (238,326) Boot Release Fee 68,000 78,615 10,615 Housing Code Violation Fines 48,000 136,968 88,968 Permit Penalty Fees 7,500 10,940 3,440 Administrative Adjudication Fine 150,000 244,133 94,133 Library Fines & Fees 195,000 162,385 (32,615) Total Fines 4,403,500 4,002,700 (400,800) Investment Income 100,000 11,454 (88,546) Continued -121- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2011 Original and Final Budget Actual Variance Miscellaneous Charges to Other Funds Recreation restricted accts 76,300$ 42,450$ (33,850)$ Community Development Fund 856,000 966,218 110,218 Home Fund 34,300 36,396 2,096 Neighborhood Stabilization Program 2 - 118,248 118,248 Emergency Telephone System Fund 126,000 126,000 - Parking Fund 644,500 686,496 41,996 Sewer Fund 266,000 266,004 4 Total Charges to Other Funds 2,003,100 2,241,812 238,712 Miscellaneous Other Revenues Property Sales and Rentals 500,100 108,657 (391,443) Berglund Animal Hosp. Pkg.- 2,400 2,400 Damage to City Signage 2,000 - (2,000) Damage to City traffic Signal 20,000 3,039 (16,961) Damage to Street Lights 20,000 - (20,000) Miscellaneous Revenue 50,700 227,377 176,677 Taxicab Revenue 7,000 4,800 (2,200) Teen baby nursery 41,000 82,000 41,000 Reimbursements - School resource 290,000 `- (290,000) Sale of surplus properties - 213,000 213,000 Reimbursements - Serve & Pro.- 3,424 3,424 Reimbursements - Salt Use - 83,377 83,377 Reimbursements - Fire Dept.- 36,051 36,051 Payment in Lieu of Taxes 300,000 87,500 (212,500) Contributions from EPL - 158,400 158,400 Dutch Elm Trees Ins.75,000 75,000 - Private Elm Trees Ins.50,000 42,830 (7,170) Fees and Merchandise - 2,878 2,878 Trash Cart Sales 30,000 67,527 37,527 Yard Waste 950,000 222,135 (727,865) Parking Permits - Ryan Field 15,000 15,137 137 Change in Reserves - 410,021 410,021 Sale of land - 1,900,000 1,900,000 Total Other Revenues 2,350,800 3,745,553 1,394,753 Total Miscellaneous 4,353,900 5,987,365 1,633,465 Total Revenues 81,464,500$ 83,624,972$ 2,160,472$ Concluded -122- 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 448,352$ 422,686$ 25,666$ City Manager 1,952,348 1,921,782 30,566 City Clerk 154,842 167,178 (12,336) Law Department 1,026,853 960,002 66,851 Administrative Services 15,683,859 16,170,222 (486,363) Facilities management 2,357,044 2,312,784 44,260 Total General Management and Support 21,623,298 21,954,654 (331,356) Public Safety Police 21,773,329 22,439,406 (666,077) Fire 12,328,323 12,819,558 (491,235) Total Public Safety 34,101,652 35,258,964 (1,157,312) Public Works Public Works Director 222,848 219,288 3,560 Municipal Service Center 412,835 333,141 79,694 City Engineer 1,542,003 1,511,537 30,466 Traffic Engineer 2,457,483 790,445 1,667,038 Streets 5,239,029 5,136,421 102,608 Sanitation 4,643,923 4,627,476 16,447 Total Public Works 14,518,121 12,618,308 1,899,813 Year ended February 28, 2011 Continued -123- 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 274,162$ 264,411$ 9,751$ Health Department 1,356,080 1,163,612 192,468 Mental health and community purchased services 677,434 638,909 38,525 Subsidized Taxicab Program - 290 (290) Human Relations 1,300,176 1,218,749 81,427 Grants - 414,460 (414,460) Total Health and Human Resource Development 3,607,852 3,700,431 (92,579) Recreation and Cultural Opportunities Library 4,217,010 4,214,555 2,455 Recreation 8,083,161 7,850,178 232,983 Parks and forestry 4,313,501 4,127,017 186,484 Ecology Center 463,904 405,079 58,825 Arts Council 853,224 793,629 59,595 Total Recreation and Cultural Opportunities 17,930,800 17,390,458 540,342 Housing and Economic Development Community Development administration 177,860 127,830 50,030 Planning and zoning 834,460 812,943 21,517 Housing rehabilitation and property standards 919,730 905,504 14,226 Building code compliance 1,388,869 1,106,526 282,343 Total Housing and Economic Development 3,320,919 2,952,803 368,116 Total Expenditures 95,102,642$ 93,875,618$ 1,227,024$ Year ended February 28, 2011 Concluded -124- 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$ 1,880,012$ (19,988)$ Interest 30,000 1,614 (28,386) Miscellaneous - 2,108 2,108 Total Revenues 1,930,000 1,883,734 (46,266) Expenditures Public Works 1,830,000 1,223,580 606,420 Excess (Deficiency) of Revenues over (under) Expenditures 100,000 660,154 560,154 Other Financing Sources (Uses) Transfers in (out) General Fund (772,500) (772,500) - Net Change in Fund Balance (672,500)$ (112,346) 560,154$ Fund Balances Beginning of year 794,436 End of year 682,090$ Year ended February 28, 2011 -125- 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 1,800,000$ 1,539,970$ (260,030)$ Interest 8,000 591 (7,409) Miscellaneous - 12,463 12,463 Total Revenue 1,808,000 1,553,024 (254,976) Expenditures Housing and economic development 1,369,087 747,437 621,650 Excess of Revenues over Expenditures 438,913 805,587 366,674 Other Financing Sources (Uses) Transfers in (out) General Fund (390,000) (390,000) - Net Change in Fund Balance 48,913$ 415,587 366,674$ Fund Balances Beginning of year 2,007,615 End of year 2,423,202$ Year ended February 28, 2011 -126- 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 1,050,000$ 1,011,894$ (38,106)$ Interest 6,000 974 (5,026) Total Revenue 1,056,000 1,012,868 (43,132) Expenditures Public Safety 2,612,104 1,821,835 790,269 Net Change in Fund Balance (1,556,104)$ (808,967) 747,137$ Fund Balance Beginning of year 2,203,797 End of year 1,394,830$ Year ended February 28, 2011 -127- 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 40,000$ 20,000$ (20,000)$ Expenditures Housing and economic development 50,000 5,397 44,603 Net Change in Fund Balance (10,000)$ 14,603 24,603$ Fund Balances Beginning of year 75,312 End of year 89,915$ Year ended February 28, 2011 -128- 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 10,000$ 20,000$ 10,000$ Developer Contributions 150,000 150,000 - Interest 21,000 1,098 (19,902) Miscellaneous - 37,037 37,037 Total Revenue 181,000 208,135 27,135 Expenditures Housing and economic development 298,000 111,076 186,924 Excess of Revenues over Expenditures (117,000) 97,059 214,059 Other Financing Sources (Uses) Transfers in (out) Debt Service Fund (24,000) (24,000) - Net Change in Fund Balance (141,000)$ 73,059 214,059$ Fund Balance Beginning of year 2,226,094 End of year 2,299,153$ Year ended February 28, 2011 -129- 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 575,009$ 663,318$ 88,309$ Interest 9,000 7,490 (1,510) Total Revenue 584,009 670,808 86,799 Expenditures Housing and economic development 542,200 83,141 459,059 Excess (Deficiency) of Revenues over (under) Expenditures 41,809 587,667 545,858 Other Financing Sources (Uses) Transfers in (out) General Fund (34,300) - 34,300 Net Change in Fund Balance 7,509$ 587,667 580,158$ Fund Balance Beginning of year 2,048,864 End of year 2,636,531$ Year ended February 28, 2011 -130- 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 2,050,176$ 1,971,590$ (78,586)$ Miscellaneous - 37,787 37,787 Total Revenues 2,050,176 2,009,377 (40,799) Expenditures Housing and economic development 2,050,176 2,009,377 40,799 Net Change in Fund Balance -$ - -$ Fund Balance Beginning of year 422,799 End of year 422,799$ Year ended February 28, 2011 -131- 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 351,113$ 359,568$ (8,455)$ Total Administration/Planning 351,113 359,568 (8,455) Economic Development Evanston Community Development Corp.30,000 30,000 - Evanston Community Development Corp. West 20,000 20,000 - Technology Innovation Center 20,000 20,000 - Neighborhood Facade Program 40,000 33,275 6,725 MBE/Small Business Assistance 40,000 40,000 - Total Economic Development 150,000 143,275 6,725 Housing Housing Code Compliance 425,000 425,000 - Targeted Code Enforcement - 14,672 (14,672) Housing Rehab Administration 325,000 248,142 76,858 Minor Repairs/Painting Assistance - E.N.A.W.100,000 121,401 (21,401) Total Housing 850,000 809,215 40,785 Neighborhood Revitalization Alley Paving Program 75,000 67,578 7,422 Curb/Sidewalk Replacement 45,833 46,174 (341) Curb/Ramp ADA 2008 45,833 45,833 - Disposition 1817 - (315) 315 Brummel Park 50,000 - 50,000 F/J - 50,000 (50,000) Family Focus-Weissbourd 40,000 39,890 110 Handyman Assistance/Elderly Home Repair 12,000 14,330 (2,330) Reba Early Learning Center Roof 14,000 21,000 (7,000) Special Assessments/Alley Paving 50,000 62,190 (12,190) School Dist. 65 Oakton Playground 5,000 5,000 - Snap Lighting 24,000 10,949 13,051 South Evanston Neighborhood Security - 1,449 (1,449) YMCA 25,000 - 25,000 YMCA Airconditioning - 14,000 (14,000) YMCA Access 15,000 13,900 1,100 Graffiti Removal Program 35,000 35,000 - Total Neighborhood Revitalization 436,666 426,978 9,688 Year ended February 28, 2011 Continued -132- Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Public Services Adopt a Fancy Can 4,000$ 539$ 3,461$ Connections for the Homeless 4,000 4,000 - Divine Wisdom 700 700 - Evanston Community Defender 39,000 39,000 - Evanston Youth Initiative - 1,190 (1,190) Girl Scouts 8,000 8,000 - Interfaith Housing Program/ Home Sharing 14,000 14,000 - Interfaith Job 2,000 2,000 - Latino 1,500 - 1,500 Legal Assist Foundation 9,000 9,000 - Meals at Home 9,000 9,000 - Music Inst.2,000 2,000 - Neighborhood Initiative Fund 8,000 - 8,000 North Shore Senior Center 22,500 22,500 - Open studio Art 3,000 3,000 - Purch Local Employment 5,000 5,000 - Shore Front Mag 15,000 15,000 - Summer Youth Employment 42,000 42,000 - Youth Job Center of Evanston 39,697 39,697 - YWCA Shelter Project 34,000 34,000 - Total Public Services 262,397 250,626 11,771 CDBG-R Fleetwood Foster Imp Phase 1B - 18,773 (18,773) CDBG-R Admin - 942 (942) Total CDBG-R - 19,715 (19,715) Total Expenditures 2,050,176$ 2,009,377$ 40,799$ Year ended February 28, 2011 Concluded -133- 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 -$ 56,361$ 56,361$ Interest 3,000 9,453 6,453 Total Revenues 3,000 65,814 62,814 Expenditures Housing and economic development 20,000 35,574 (15,574) Excess (Deficiency) of Revenues over (under) Expenditures (17,000) 30,240 47,240 Other Financing Sources (Uses) Transfers in (out) Community Development Block Grant (55,000) - 55,000 Net Change in Fund Balance (72,000)$ 30,240 102,240$ Fund Balances Beginning of year 1,974,482 End of year 2,004,722$ Year ended February 28, 2011 -134- 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 4,000,000$ 4,205,637$ 205,637$ Expenditures Housing and economic development 4,000,000 4,205,637 (205,637) Net Change in Fund Balance -$ - -$ Fund Balances Beginning of year - End of year -$ Year ended February 28, 2011 -135- 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$ 388,000$ 10,000$ Prior year levy - (2,517) (2,517) Interest - 35 35 Total Revenues 378,000 385,518 7,518 Expenditures Housing and economic development 378,000 378,216 (216) Net Change in Fund Balance -$ 7,302 7,302$ Fund Balance Beginning of year 300,230 End of year 307,532$ Year ended February 28, 2011 -136- CITY OF EVANSTON, ILLINOIS Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year ended March 31, 2010 Original and Final Budget Actual Variance Revenues Property taxes 295,753$ 367,269$ 71,516$ Interest 6,000 640 (5,360) Replacement tax 40,000 56,596 16,596 Total Revenues 341,753 424,505 82,752 Expenditures General management and support 518,719 519,818 (1,099) Excess (Deficiency) of Revenues over (under) Expenditures (176,966) (95,313) 81,653 Other Financing Sources (Uses) Transfers in (out) General Assistance Fund 200,000 290 (199,710) Net Change in Fund Balance 23,034$ (95,023) (118,057)$ Fund Balance Beginning of year 602,230 End of year 507,207$ -137- CITY OF EVANSTON, ILLINOIS Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year ended March 31, 2010 Original and Final Budget Actual Variance Revenues Property taxes 986,553$ 1,217,254$ 230,701$ Interest 9,000 1,431 (7,569) SSI reimbursement 15,000 20,197 5,197 Medical reimbursement - 125 125 Total Revenues 1,010,553 1,239,007 228,454 Expenditures General management and support 1,089,282 937,570 151,712 Excess (Deficiency) of Revenues over (under) Expenditures (78,729) 301,437 380,166 Other Financing Sources (Uses) Transfers in (out) Town Fund 100,000 (290) (100,290) Net Change in Fund Balance 21,271$ 301,147 279,876$ Fund Balance Beginning of year 1,292,888 End of year 1,594,035$ -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$ 429,487$ (120,513)$ Interest 25,000 6,005 (18,995) Miscellaneous - 4 4 Total Revenue 575,000 435,496 (139,504) Expenditures General management and support -$ 774$ (774)$ Capital outlay 480,000 190,932 289,068 Total Expenditures 480,000 191,706 288,294 Excess (Deficiency) of Revenues over (under) Expenditures 95,000 243,790 148,790 Other Financing Sources (Uses) Transfers in (out) Debt Service Fund (317,659) (317,664) (5) Net Change in Fund Balance (222,659)$ (73,874) 148,785$ Fund Balance Beginning of year 3,833,828 End of year 3,759,954$ Year ended February 28, 2011 -139- CITY OF EVANSTON, ILLINOIS Debt Service Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budgetary Basis) 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 10,376,436$ 10,806,574$ 431,812$ 432,706$ 656,000$ 437,734$ 1,252,000$ 1,039,086$ Prior year levy, net - (111,054) - (4,460) - - - - Investment income 10,000 700 100 45 500 12 15,000 1,549 Total Revenues 10,386,436 10,696,220 431,912 428,291 656,500 437,746 1,267,000 1,040,635 Expenditures General management and support 200,000 71,197 - - - 523 - 785 Health and human resources development - - - - 840,000 840,000 - - Public Works - - - - - - - - Debt Service Principal 6,624,740 6,618,800 325,000 325,000 - - 533,249 570,000 Interest 4,186,965 4,295,737 113,062 107,706 - - 141,804 141,058 Fiscal agent fees 8,000 12,248 - - - - - - Total Expenditures 11,019,705 10,997,982 438,062 432,706 840,000 840,523 675,053 711,843 Excess (Deficiency) of Revenues over (under) Expenditures (633,269) (301,762) (6,150) (4,415) (183,500) (402,777) 591,947 328,792 Other Financing Sources (Uses) Transfers in (out) General - - - - (24,100) (24,096) (141,600) (141,600) Special Assessment 317,659 317,664 - - - - - - Motor Vehicle Parking System - - - - - - - - Total Other Financing Sources (Uses)317,659 317,664 - - (24,100) (24,096) (141,600) (141,600) Net Changes in Fund Balances (315,610)$ 15,902 (6,150)$ (4,415) (207,600)$ (426,873) 450,347$ 187,192 Fund Balances Beginning of year 300,170 22,886 577,637 3,742,018 End of year 316,072$ 18,471$ 150,764$ 3,929,210$ Year ended February 28, 2011 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 4,704,000$ 4,420,436$ 689,000$ 409,309$ 315,000$ 426,691$ 18,424,248$ 17,972,536$ - 152,321 - 14,233 - 16,361 - 67,401 25,000 27,588 500 239 500 1,060 51,600 31,193 4,729,000 4,600,345 689,500 424,907 315,500 444,112 18,475,848 18,072,256 - 6,581 - 495,246 490,000 313,727 690,000 888,059 - - - - - - 840,000 840,000 232,500 88,362 - - - - 232,500 88,362 304,002 325,000 - - - - 7,786,991 7,838,800 111,762 118,201 - - - - 4,553,593 4,662,702 - - - - - - 8,000 12,248 648,264 538,144 - 495,246 490,000 313,727 14,111,084 14,330,171 4,080,736 4,062,201 689,500 (70,339) (174,500) 130,385 4,364,764 3,742,086 (325,000) (324,996) (120,400) (120,396) (25,000) (24,996) (636,100) (636,084) - - - - - - 317,659 317,664 (3,385,900) (3,385,896) - - - - (3,385,900) (3,385,896) (3,710,900) (3,710,892) (120,400) (120,396) (25,000) (24,996) (3,704,341) (3,704,316) 369,836$ 351,309 569,100$ (190,735) (199,500)$ 105,389 660,423$ 37,769 5,944,361 752,963 935,123 12,275,158 6,295,670$ 562,228$ 1,040,512$ 12,312,927$ 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 Intrafund Totals Current Assets Cash and equivalents 2,877,661$ -$ 2,852,488$ 545,667$ -$ 6,275,816$ Restricted cash and equivalents and investments - 35,957 624,344 400,000 - 1,060,301 Receivables Accounts - billed 1,182,100 - - - - 1,182,100 Accounts - unbilled 896,991 - - - - 896,991 Due from other funds 19,768 100,000 - - (100,000) 19,768 Inventory 609,278 - - - - 609,278 Total Current Assets 5,585,798 135,957 3,476,832 945,667 (100,000) 10,044,254 Capital Assets Land 555,415 - - - - 555,415 Construction in progress 90,660 - - 681,563 - 772,223 Capital assets being depreciated 76,318,163 - - - - 76,318,163 Less accumulated depreciation (20,784,758) - - - - (20,784,758) Total Capital Assets 56,179,480 - - 681,563 - 56,861,043 Total Assets 61,765,278$ 135,957$ 3,476,832$ 1,627,230$ (100,000)$ 66,905,297$ February 28, 2011 Assets -143- CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets February 28, 2011 Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Intrafund Totals Current Liabilities Vouchers payable 119,050$ -$ -$ 30,945$ -$ 149,995$ Interest payable - restricted - 8,224 - - - 8,224 Revenue bonds payable 479,167 - - - - 479,167 Notes payable-IEPA 28,937 - - - - 28,937 Revenue bonds payable - restricted - 95,833 - - - 95,833 General obligation bonds payable 62,272 - - - - 62,272 Due to other funds 255,258 - - - (100,000) 155,258 Unearned revenue 674 - - - - 674 Compensated absences payable 216,943 - - - - 216,943 Total Current Liabilities 1,162,301 104,057 - 30,945 (100,000) 1,197,303 Long-Term Liabilities Notes payable-IEPA 1,128,514 - - - - 1,128,514 Revenue bonds payable 595,000 - - - - 595,000 OPEB liabilty 84,726 - - - - 84,726 Compensated absences payable 237,514 - - - - 237,514 General obligation bonds payable 649,179 - - - - 649,179 IMRF Pension contributions payable 149,845 - - - - 149,845 Unamortized bond discount on bonds payable 12,419 - - - - 12,419 Total Long-Term Liabilities 2,857,197 - - - - 2,857,197 Total Liabilities 4,019,498 104,057 - 30,945 (100,000) 4,054,500 Net Assets Invested in capital assets, net of related debt 55,092,894 - - - - 55,092,894 Restricted for debt service - 599,672 624,344 - - 1,224,016 Restricted for Capital Improvements - - - 400,000 - 400,000 Unrestricted 2,652,886 (567,772) 2,852,488 1,196,285 - 6,133,887 Total Net Assets 57,745,780 31,900 3,476,832 1,596,285 - 62,850,797 Total Liabilities and Net Assets 61,765,278$ 135,957$ 3,476,832$ 1,627,230$ (100,000)$ 66,905,297$ Liabilities and Net Assets -144- 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 350,000$ -$ 2,500,000$ 2,850,000$ Investment earnings 842 10,628 556 12,026 Total Increases 350,842 10,628 2,500,556 2,862,026 Decreases Bond principal 554,166 - - 554,166 Bond interest 67,615 - - 67,615 Purchase of capital assets - - 3,973,104 3,973,104 Payment of expense 300 - 1,341 1,641 Total Decreases 622,081 - 3,974,445 4,596,526 Net Increase (Decrease)(271,239) 10,628 (1,473,889) (1,734,500) Net Assets Beginning of year 303,139 3,466,204 3,070,174 6,839,517 End of year 31,900$ 3,476,832$ 1,596,285$ 5,105,017$ Year ended February 28, 2011 -145- CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account (With Comparative Totals for the Year Ended February 28, 2010) Prior Year Budget Actual Actual Operating Revenues Charges for services 12,465,000$ 13,086,057$ 12,203,588$ Miscellaneous 947,446 651,825 490,889 Total Operating Revenues 13,412,446 13,737,882 12,694,477 Operating Expenses Excluding Depreciation Administration 788,521 820,136 785,180 Operations Pumping 2,655,827 2,075,791 2,284,009 Filtration 2,492,978 2,170,905 2,214,043 Meter maintenance 356,611 294,342 337,999 Distribution 1,384,891 1,205,917 1,197,073 Other 394,800 624,486 938,456 Total Operating Expenses Excluding Depreciation 8,073,628 7,191,577 7,756,760 Operating Income Before Depreciation 5,338,818 6,546,305 4,937,717 Depreciation - 1,439,663 1,249,299 Operating Income 5,338,818 5,106,642 3,688,418 Nonoperating Revenues (Expenses) Investment income 12,000 2,773 3,132 Interest expense - (67,615) (88,176) Bond expenses and amortization of discount - 1,129 1,129 Net book value of capital assets disposed - (13,434) (15,354) Total Nonoperating Revenues (Expenses) 12,000 (77,147) (99,269) Income Before Transfers 5,350,818 5,029,495 3,589,149 Transfers In (Out) Transfer Out (2,778,600) (3,286,800) (2,693,604) Total Transfers In (Out)(2,778,600) (3,286,800) (2,693,604) Net Income 2,572,218$ 1,742,695 895,545 Other Changes in Unreserved Net Assets lntrafund transfers in (out) - net assets - reserved - restricted accounts 1,744,885 2,893,329 Increase in Unreserved Net Assets 3,487,580 3,788,874 Unreserved Net Assets Beginning of year, as restated 54,258,200 51,180,777 End of year 57,745,780$ 54,969,651$ Year ended February 28, 2011 Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual -146- CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual (With Comparative Totals for the Year Ended February 28, 2010) Prior Year Budget Actual Actual Charges for Services, Net Water Sales Evanston 5,675,000$ 5,419,316$ 5,102,757$ Skokie 2,690,000 2,885,096 2,594,765 Northwest Water Commission 4,100,000 4,781,645 4,506,066 Total Charges for Services 12,465,000 13,086,057 12,203,588 Miscellaneous Fees and outside work 80,000 79,439 74,480 Fees, merchandise and other 867,446 572,386 416,409 Total Miscellaneous 947,446 651,825 490,889 Total Operating Revenues 13,412,446$ 13,737,882$ 12,694,477$ Year ended February 28, 2011 -147- 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 adminstering general liability claims and workers' compensation programs. Such costs are billed to the General Fund. -148- CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Net Assets Fleet Services Insurance Totals Current Assets Cash and equivalents 689,094$ 737,601$ 1,426,695$ Receivables - other 625,747 - 625,747 Inventories 396,460 - 396,460 Prepaid Expenses 1,171,968 - 1,171,968 Due from other funds - 15,334 15,334 Total Unrestricted Current Assets 2,883,269 752,935 3,636,204 Capital Assets Cost 20,431,236 - 20,431,236 Accumulated depreciation (15,112,841) - (15,112,841) Total Capital Assets 5,318,395 - 5,318,395 Total Assets 8,201,664 752,935 8,954,599 Liabilities and Fund Equity Current Liabilities Vouchers payable 328,913 72,667 401,580 Compensated absences payable 31,451 - 31,451 Claims payable - 2,703,328 2,703,328 Due to other funds 48,292 162,561 210,853 Total Current Liabilities 408,656 2,938,556 3,347,212 Long-Term Liabilities Compensated absences payable 51,324 - 51,324 OPEB Liability 29,331 - 29,331 Claims payable - 2,751,875 2,751,875 Total Long-Term Liabilities 80,655 2,751,875 2,832,530 Total Liabilities 489,311 5,690,431 6,179,742 Net Assets (Deficit) Invested in capital assets 5,318,395 - 5,318,395 Unrestricted 2,393,958 (4,937,496) (2,543,538) Total Net Assets (deficit)7,712,353$ (4,937,496)$ 2,774,857$ February 28, 2011 Assets -149- 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 4,047,726$ 2,595,802$ 6,643,528$ Sewer Fund 305,500 270,216 575,716 Water Fund 195,100 468,492 663,592 Motor Vehicle Parking System Fund 29,700 319,788 349,488 Emergency Telephone System - 17,460 17,460 Economic Development - 17,460 17,460 Community Development Block Grant - 17,460 17,460 Claims Reimbursements - 221,603 221,603 Health Insurance Contributions - 12,049,883 12,049,883 Miscellaneous 4,848 - 4,848 Total Operating Revenues 4,582,874 15,978,164 20,561,038 Operating Expenses General support 244,546 - 244,546 Major maintenance 2,803,490 - 2,803,490 General liability claims - 1,887,565 1,887,565 Workers compensation claims - 1,740,321 1,740,321 Health Insurance Premiums - 12,355,778 12,355,778 Other - 804,823 804,823 Total Operating Expenses 3,048,036 16,788,487 19,836,523 Operating Income (Loss) Before Depreciation 1,534,838 (810,323) 724,515 Depreciation 1,197,047 - 1,197,047 Operating Income (Loss)337,791 (810,323) (472,532) Nonoperating Revenues (Expenses) Capital contributions & Grants 1,139,024 - 1,139,024 Investment income 897 1,030 1,927 Gain (loss) on disposition of assets 74,907 - 74,907 Total Nonoperating Revenues (Expenses)1,214,828 1,030 1,215,858 Transfers In (Out) Capital Improvements 358,121 - 358,121 Change in Net Assets 1,910,740 (809,293) 1,101,447 Total Net Assets (Deficit) - Beginning of Year 5,801,613 (4,128,203) 1,673,410 Total Net Assets (Deficit)- End of Year 7,712,353$ (4,937,496)$ 2,774,857$ Year ended February 28, 2011 -150- 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 4,583,145$ 15,978,164$ 20,561,309$ Receipts from (to) interfund services provided (242,825) 139,704 (103,121) Payments to suppliers (2,656,527) (479,889) (3,136,416) Payments to employees (238,136) (3,627,886) (3,866,022) Payments for insurance premiums - (12,355,778) (12,355,778) Net Cash Provided by (used for) Operating Activities 1,445,657 (345,685) 1,099,972 Cash Flows from Capital and Related Financing Activities Sale of capital assets 91,591 - 91,591 Acquisition and construction of capital assets (1,801,097) - (1,801,097) Capital contributions 358,121 - 358,121 Net Cash Used for Capital and Related Financing Activities (1,351,385) - (1,351,385) Cash Flows from Investing Activities Interest income 897 1,030 1,927 Net Cash provided by Investing Activities 897 1,030 1,927 Net Increase in Cash and Cash Equivalents 95,169 (344,655) (249,486) Cash and Equivalents Beginning of year 593,925 1,082,256 1,676,181 End of year 689,094$ 737,601$ 1,426,695$ Year ended February 28, 2011 Continued -151- 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)337,791$ (810,323)$ (472,532)$ Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation 1,197,047 - 1,197,047 Changes in assets and liabilities Increase/decrease in A/R miscellaneous 271 - 271 Inventories (52,671) - (52,671) Compensated absences (2,136) - (2,136) OPEB Liability 8,546 - 8,546 Accounts payable 200,011 43,099 243,110 lnterfund payable (242,825) 139,704 (103,121) Vouchers payable (377) - (377) Claims payable - 281,835 281,835 Net Cash Provided By (Used For) Operating Activities 1,445,657$ (345,685)$ 1,099,972$ Year ended February 28, 2011 Concluded -152- STATISTICAL SECTION (UNAUDITED) -153- Statistical Section Contents Page Financial Trends 155 - 158 Revenue Capacity 159 - 161 Debt Capacity 162 - 164 Demographic and Economic Information 166 - 167 Operating Information 168 - 173 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. -154- CITY OF EVANSTON, ILLINOIS Net Assets by Component Last Nine 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 Governmental Activites 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$ Restricted 33,826 33,415 32,811 31,169 30,034 23,168 26,238 23,645 23,187 Unrestricted (15,245) 32,861 43,010 15,408 25,171 28,231 17,539 10,400 4,072 Total Governmental Activities net assets 54,018$ 56,523$ 76,247$ 81,005$ 86,338$ 82,941$ 81,055$ 75,154$ 76,742$ 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$ Restricted 9,491 11,158 11,274 10,449 9,374 1,986 1,987 3,378 1,624 Unrestricted 18,053 23,332 21,478 23,483 21,417 23,589 27,586 25,417 19,141 Total Business-type Activities net assets 124,159$ 137,829$ 147,194$ 163,016$ 171,412$ 184,760$ 201,972$ 221,716$ 227,927$ 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$ Restricted 43,317 44,573 44,085 41,618 39,408 25,154 28,225 27,023 24,811 Unrestricted 2,808 56,193 64,488 38,891 46,588 51,820 45,125 35,817 23,213 Total Primary Governemnt net assets 178,177$ 194,352$ 223,441$ 244,021$ 257,750$ 267,701$ 283,027$ 296,870$ 304,669$ Note: A Ten Year history is not yet available. Source: City Finance department -155- CITY OF EVANSTON, ILLINOIS Changes in Net Assets Last Nine 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 Expenses Governmental Activities General government 14,274$ 15,791$ 14,451$ 19,537$ 19,951$ 20,072$ 18,017$ 19,773$ 17,517$ Public Safety 33,420 39,237 31,168 45,951 46,368 48,763 49,484 50,488 53,226 Public Works 13,187 13,065 14,225 14,632 16,505 21,566 21,628 18,509 15,626 Health & Human Resource Development 5,041 5,370 5,843 4,781 6,108 4,982 4,546 4,760 4,541 Housing & Economic Development 5,818 5,973 6,757 6,850 7,924 7,090 6,965 20,066 10,857 Culture and Recreation 16,247 17,129 18,276 19,792 18,303 20,634 20,002 9,120 20,142 Interest on Long-term Debt 4,540 4,900 5,086 5,874 6,926 5,522 4,041 4,396 5,595 Total governmental activities expenses 92,527 101,465 95,806 117,417 122,085 128,630 124,683 127,112 127,504 Business-type Activities Water 11,407 8,992 8,176 8,760 8,778 8,668 9,391 9,133 8,713 Sewer 8,544 8,964 8,781 9,219 9,588 8,972 8,726 8,779 8,784 Motor vehicle parking system 3,702 3,468 4,777 2,904 2,963 2,403 8,896 8,841 8,425 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 Total primary government expenses 118,859$ 125,917$120,688$141,396$ 147,937$155,625$151,696$ 153,865$153,426$ 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$ Culture and Recreation 3,759 3,739 3,731 4,310 4,353 4,521 4,637 4,902 5,265 Other activities 4,479 6,799 9,253 10,293 8,779 14,518 10,289 7,946 9,377 Operating grants and contributions 3,006 3,480 3,713 3,441 3,679 5,982 5,117 5,898 9,851 Capital Grants and Contributions 1,963 1,459 212 1,127 185 118 113 4,037 8,026 Total governmental activities program revenues 24,911 28,227 30,171 32,231 30,626 37,778 33,504 35,870 45,315 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 Sewer 15,806 15,436 14,913 16,077 14,394 14,239 13,774 13,243 13,393 Sherman garage - - - - 779 1,950 - - - Motor vehicle parking system 3,129 3,266 3,011 2,965 3,059 3,084 6,719 6,772 5,987 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 Total primary government program revenues 58,607$ 61,670$ 62,794$ 66,856$ 62,914$ 71,719$ 67,682$ 68,579$ 78,433$ Net (expense)/revenue Governmental activities (67,616) (73,238) (65,635) (85,186) (91,459) (90,852) (91,179) (91,242) (82,189) Business-type activities 7,364 8,991 7,741 10,646 6,436 6,945 7,165 5,956 7,196 Total Primary Government net expense (60,252) (64,247) (57,894) (74,540) (85,023) (83,906) (84,014) (85,286) (74,993) 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$ Sales taxes 217 345 345 - 14,387 16,172 15,500 14,880 15,577 Investment earnings 1,266 1,710 1,547 2,997 3,752 3,653 360 721 557 Miscellaneous 2,513 2,096 4,996 1,412 17,287 25,799 26,684 24,601 27,501 Transfers (1,719) (4,335) (1,244) (4,277) (616) (5,116) (9,469) (13,700) (99) Total governmental activities 76,112 75,745 85,359 89,942 96,793 87,455 89,292 85,341 90,576 Business-type activities Investment earnings 432 343 380 896 1,344 1,287 606 87 23 Miscellaneous - - - - - (28) - - Transfers 1,719 4,335 1,244 4,277 616 5,116 9,469 13,700 99 Total business-type activities 2,151 4,678 1,624 5,173 1,960 6,403 10,047 13,787 122 Total primary government 78,263$ 80,423$ 86,983$ 95,115$ 98,753$ 93,858$ 99,339$ 99,128$ 90,698$ Changes in Net Assets Governmental activities 8,496$ 2,507$ 19,724$ 4,756$ 5,334$ (3,397)$ (1,887)$ (5,901)$ 8,387$ Business-type activities 9,515 13,669 9,365 15,819 8,396 13,348 17,212 19,743 7,318 Total primary government 18,011$ 16,176$ 29,089$ 20,575$ 13,730$ 9,951$ 15,325$ 13,842$ 15,705$ Note: A Ten Year History is not yet available. Source: City Finance department -156- 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 2/28/2002 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 General Fund Reserved 2,820$ 4,614$ 4,665$ 7,948$ 6,027$ 1,327$ 1,108$ 1,275$ 1,585$ 1,995$ Unreserved 12,438 13,110 14,375 15,209 18,804 24,866 24,840 19,752 18,603 20,009 Total general fund 15,258$ 17,724$ 19,040$ 23,157$ 24,831$ 26,193$ 25,948$ 21,027$ 20,188$ 22,004$ All Other Governmental Funds Reserved 25,683$ 29,211$ 28,750$ 30,761$ 33,937$ 31,741$ 29,739$ 31,757$ 28,953$ 28,738$ Unreserved, reported in Special revenue funds 7,507 60,514 4,617 5,249 5,171 5,587 6,649 10,356 10,807 10,907 Capital Projects Funds 12,648 - 58,816 49,476 31,696 23,965 25,620 20,899 9,276 9,665 Total all other governmental funds 45,838$ 89,725$ 92,183$ 85,486$ 70,804$ 61,293$ 62,008$ 63,012$ 49,036$ 49,310$ Note: Fund balances for debt service have been included in the reserved amounts. Source: City Finance department -157- 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 2/28/2002 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 Revenues Taxes 68,749$ 58,814$ 63,833$ 66,744$ 75,661$ 77,137$ 75,767$ 84,035$ 84,726$ 73,559$ Licenses, fees and permits 7,405 6,459 6,699 6,773 9,164 8,061 10,276 8,820 7,279 8,661 Fines and penalties 3,242 3,742 4,163 3,999 3,781 4,029 4,660 4,442 4,151 4,003 Charges for services 5,515 6,262 5,997 6,053 6,905 7,167 7,732 8,399 8,680 9,786 Special Assessments - 208 217 365 546 565 520 516 240 429 Intergovernmental 5,859 19,116 18,586 21,618 21,106 21,402 22,625 21,013 20,696 26,456 Investment Earnings 2,458 1,255 1,650 1,540 2,970 3,695 3,402 272 714 555 Other Revenues 4,976 6,859 6,953 9,451 5,812 5,578 5,116 4,679 4,642 6,390 Total Revenues 98,204 102,715 108,098 116,543 125,945 127,634 130,098 132,176 131,128 129,839 Expenditures General Government 13,025 12,565 13,365 14,666 15,601 14,539 18,190 16,498 16,184 23,463 Public Safety 25,454 32,093 33,896 36,323 39,094 39,690 42,466 49,999 48,970 50,352 Public Works 11,655 10,847 11,119 12,070 13,242 14,282 18,868 18,913 16,062 14,053 Recreation and cultural opportunities 13,028 13,712 14,287 15,493 16,526 16,683 19,118 18,942 18,100 17,399 Health and Human Development 4,621 4,839 5,272 5,801 4,566 5,850 4,982 4,546 4,760 4,541 Housing and Economic Development 6,293 5,662 5,882 6,717 6,646 7,683 7,089 6,963 9,120 11,345 Pensions 9,277 4,209 2,688 1,372 4,628 5,645 - - - - Capital Outlay 16,837 13,301 9,941 18,208 42,087 18,986 12,416 8,209 7,960 7,112 Debt Service Interest 4,339 4,846 5,163 5,027 5,857 6,927 5,128 5,143 4,953 4,878 Fiscal agent fees 359 323 517 42 28 5 12 Principal 6,300 6,585 9,385 7,885 7,690 11,530 10,815 9,885 7,524 7,650 Total governmental activities expenditure 110,829 108,659 110,998 123,921 156,260 142,332 139,114 139,126 133,638 140,805 Net (expense)/revenue Governmental activities (12,625) (5,944) (2,900) (7,378) (30,315) (14,698) (9,016) (6,950) (2,510) (10,966) Other financing sources (uses) Proceeds from borrowing -$ 57,066$ 24,917$ 25,724$ 31,332$ 24,916$ 31,444$ 24,340$ -$ 13,393$ Capitalized interest income - 773 - - 355 - - 839 - 120 Capitalized interest expense - (773) - - (355) - - - - - Proceeds sale property/other 318 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 5,619 8,259 9,762 6,020 7,032 6,529 8,975 5,927 11,019 5,727 Transfers (out)(3,893) (9,572) (15,287) (15,062) (14,432) (10,528) (15,344) (14,794) (23,324) (6,184) Total Other financing sources (uses)2,044 51,621 6,674 4,796 17,306 6,549 9,485 3,032 (12,305) 13,056 Net Changes in Fund Balance (10,581)$ 45,677$ 3,774$ (2,582)$ (13,009)$ (8,149)$ 469$ (3,917)$ (14,815)$ 2,090$ Debt Service as a percentage of noncapital expenditures 11.32% 11.99% 14.40% 12.21% 11.87% 14.96% 12.58% 11.48% 9.93% 9.36% Source: City Finance department Note: The largest own-source revenue is the poperty tax with a rate of 1.204% (for the city portion only) of Equalized Assessed Value (EAV) for the tax year 2009 . -158- 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 2000 828,097,184$ 16,895$ 390,321,697$ 67,725,714$ 298,315$ 1,286,459,805$ 3,859,379,415$ 2.033 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 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 $100 of Equalized assessed value. -159- CITY OF EVANSTON, ILLINOIS Principal Property Taxpayers Current year and Nine Years Ago 2009 EAV 2000 EAV Percentage Percentage Total of Total City Total of Total City Equalized Assessed Taxable Equalized Assessed Taxable Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV Grubb & Ellis 27,177,656$ 1 0.82%Golub & Company 18,104,484$ 1 1.36% LR 1603 Orrington 22,925,388 2 0.69%Rotary International 15,175,127 2 1.14% Church Street Plaza 16,850,500 3 0.51%Albertson's (Jewel & Osco)9,294,298 3 0.70% NNN Church Street Office Center 13,542,966 4 0.41%Lynn Minnici 9,264,731 4 0.70% Church & Chicago Limited Partnership 13,038,074 5 0.39%Church & Chicago Ltd Partnership 8,789,492 5 0.66% Evanston Hotel Assoc.12,132,357 6 0.37%St. Francis Hospital 8,413,462 6 0.63% Sanir Cumberland Center 11,263,572 7 0.34%Evanston Plaza Freed 7,936,773 7 0.60% Inland 11,120,188 8 0.34%The Orrington Hotel 7,793,713 8 0.58% Albertson's 11,742,809 9 0.36%Presbyterian Homes 7,512,879 9 0.56% 11,601,647 10 0.35%Home Depot 7,361,655 10 0.55% Total 151,395,157$ 4.58% Total 99,646,614$ 7.48% Total EAV 3,305,989,369$ Total EAV 1,332,744,014$ Source: Cook County -160- 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 2001 26,305,327$ 25,391,349$ 96.53% 442,216$ 25,833,565$ 98.21% 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 See Note See Note See Note See Note See Note Note: Levy Year 2010 is collected beyond fiscal year end 2011 through 12/31/11 Source: City Finance department -161- 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 2/28/2002 74,239 1,615,839,177 147,832,588 5,193,168 86,835,000 55,804,420 2,497,771,155 3.45% 2.23% 751.69 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 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 Sewer Fund, the Fleet Service Fund, the Motor Vehicle Parking System Fund, the Howard Hartrey Tax Increment Tax District Fund, the Southwest Tax Increment District Fund, the Washington National Tax Increment Tax District Fund, the Emergency Telephone System Fund, Special Assessment fund, recycling revenues of the General Fund, certain dedicated Water Fund revenues, and property tax from the defeased Special Service District No. 5 Bonds that is not being abated. Equalized assessed values do not include tax increment financing district incremental equalized assessed values. -162- 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 2/28/2002 147,745,000 4,140,000 87,588 58,590,000 8,470,000 92,296,380 311,328,968 12.46% 4,194$ 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 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 -163- 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 117,322,439$ 100.00% 117,322,439$ Other bonded debt County of Cook 3,505,435,000$ 1.86% 65,201,091$ Cook County Forest Preserve District 101,935,000 1.86% 1,895,991 Metropolitan Water Reclamation District 1,945,659,620 1.90% 36,967,533 High School District 202 17,006,098 90.19% 15,337,800 School District 65 60,579,810 90.19% 54,636,931 Skokie Park District 8,580,000 0.72% 61,776 Total Overlapping Debt 5,639,195,528$ 174,101,122$ Total Direct and Overlapping Debt 5,756,517,967$ 291,423,561$ Source: Cook County CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities As of February 28, 2011 -164- 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 2/28/2002 13,005,269$ 5,670,480$ 7,334,789$ 2,325,000$ 494,210$ 2.60 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 Note: 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. -165- 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 74,239 2,902,967,617 42,394 34.3 94.0%9,550.0 7.9% 2011 74,486 3,157,759,484 42,394 34.3 94.0% 11,369.0 7.3% Source: Various Government agencies -166- 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 -167- CITY OF EVANSTON, ILLINOIS Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year Ended 2/28/2002 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 Function/Program General Government City Clerk 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 City Manager's Office 7.55 7.55 7.25 7.25 7.25 7.25 13.70 31.53 27.70 22.00 MBIS / IT 20.75 21.50 21.80 22.80 24.80 23.80 25.50 - - 13.00 Legal 7.50 6.00 6.00 7.00 7.00 7.00 7.00 7.00 6.00 7.00 Human Resources 8.00 8.00 7.00 7.00 7.00 8.00 8.00 8.00 8.00 5.00 Finance 27.00 26.00 24.50 24.50 26.50 25.50 26.50 29.50 28.50 19.50 Parking Systems - - - - - - - - - 13.00 Facilities Management 24.00 23.00 23.00 23.10 21.10 21.20 - - - - Community Development 38.00 36.00 34.00 36.00 36.00 36.00 36.00 35.00 33.00 28.00 Police 214.80 212.30 213.80 217.50 219.50 221.75 220.75 220.75 218.50 219.00 Fire 109.00 109.00 109.00 109.00 110.00 111.00 111.00 112.00 111.00 107.00 Human & Health Services 45.03 41.73 39.54 39.30 39.30 40.15 29.68 24.90 26.40 15.90 Public Works 90.50 90.00 90.00 90.25 91.25 90.25 108.45 105.45 83.25 58.80 Human Relations 4.00 4.00 4.00 4.00 4.00 4.00 - - - - Library 66.37 67.17 66.20 66.65 67.18 67.19 66.69 69.35 67.50 52.00 Recreation, Parks & Forestry 124.82 122.25 113.94 119.20 121.30 119.90 115.90 112.75 131.75 132.00 Total General Fund 790.32 777.50 762.03 775.55 784.18 784.99 771.17 758.23 743.60 694.20 Neighborhood Stabilization Program - - - - - - - - - 1.00 Emergency Telephone System 3.00 3.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 CDBG 3.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Economic Development Fund 1.45 1.45 1.45 1.45 1.45 1.45 1.30 2.30 2.30 5.00 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 13.00 14.00 14.50 14.50 14.50 15.50 14.00 Water 44.00 44.00 44.00 43.00 43.00 43.00 43.00 43.00 43.00 42.00 Sewer 14.00 14.00 14.00 14.00 13.50 14.00 14.00 14.00 14.00 12.00 Fleet Services 17.00 17.00 17.00 17.00 17.00 17.00 15.00 15.00 15.00 11.00 Insurance Fund - 2.00 1.30 1.30 1.30 1.30 1.00 2.00 2.00 3.00 Total Other Funds 95.95 96.45 96.75 95.75 97.25 99.25 95.80 97.80 98.80 95.00 Total All Funds 886.27 873.95 858.78 871.30 881.43 884.24 866.97 856.03 842.40 789.20 Source: City of Evanston HR Division -168- CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 City of Evanston 2.033 1.628 1.610 1.698 1.528 1.491 1.527 1.283 1.295 1.204 Consolidated Elections - 0.032 - 0.029 - 0.014 - 0.012 - 0.021 Cook County 0.824 0.746 0.690 0.630 0.593 0.533 0.500 0.446 0.415 0.394 Cook County Forest Preserve District 0.069 0.067 0.061 0.059 0.060 0.060 0.057 0.053 0.051 0.049 Suburban T.B. Sanitarium 0.008 0.007 0.006 0.004 0.001 0.005 0.005 - - - Metropolitan Water Reclamation District 0.415 0.401 0.371 0.361 0.347 0.315 0.284 0.263 0.252 0.261 North Shore Mosquito Abatement District 0.011 0.010 0.009 0.009 0.008 0.008 0.009 0.008 0.008 0.008 Evanston Township 0.077 0.064 0.062 0.065 0.056 0.055 0.058 0.050 0.050 0.042 Community College 535 0.213 0.186 0.179 0.186 0.161 0.158 0.166 0.141 0.140 0.140 School District 202 2.977 2.469 2.349 2.444 2.078 2.023 2.099 1.750 1.722 1.616 School District 65 4.232 3.516 3.343 3.475 2.978 2.890 3.045 2.535 2.552 2.401 Total tax rate for property not in park district or special service district 10.859 9.126 8.680 8.960 7.810 7.552 7.750 6.541 6.485 6.136 Percent of total tax rate levied by City of Evanston 18.7% 17.8% 18.5% 19.0% 19.6% 19.7% 19.7% 19.6% 20.0% 19.6% Source: Cook County Assessor's office Government Unit -169- CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (in 100 cubic feet) Fiscal Year Ended 2/28/2002 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 Type of Customer Residential 2,711,271 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 Industrial 41,895 37,076 36,015 22,010 20,096 16,307 16,579 15,722 13,624 14,195 Commercial 1,337,280 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 Government 113,349 112,007 90,908 86,096 109,121 96,777 100,278 89,420 69,229 75,308 Total 4,203,795 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 Total direct rate per 100 cubic feet 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.52$ 1.52$ 1.52$ 1.52$ Source: City Water department -170- CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years Fiscal Year Ended 2/28/2002 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 Type of Customer Evanston residents/businesses 6,606,091$ 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$ Village of Skokie 2,859,685 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 Northwest Water Commission 3,247,291 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 Total $12,713,067 $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$ Source: City Water department -171- CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years Calendar Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Function/Program Police Violent Offenses 270 314 293 266 226 224 282 299 255 214 Property Offenses 4,174 4,122 3,318 3,145 2,965 2,942 2,825 2,739 2,412 2,119 911 Calls Received 37,201 55,125 55,383 56,650 56,650 55,795 59,135 56,717 52,198 35,991 Fire Emergency responses 7,925 8,003 8,106 7,624 8,135 8,173 8,517 9,134 8,566 8,917 Fires extinguished 227 218 225 199 287 220 192 185 154 157 Inspections 2,940 3,071 2,664 2,194 1,496 1,320 1,050 1,810 709 680 Other Public Works Street resurfacing (estimated miles)3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.4 Parks and Recreation Athletic field usage (hours)unavailable unavailable unavailable unavailable unavailable 15,561 15,165 17,121 16,185 18,966 Picnic permits issued unavailable unavailable unavailable unavailable unavailable 319 373 403 431 460 Library Volumes in collection 463,263 477,768 491,064 520,458 486,031 495,575 458,017 502,019 502,019 471,262 Total volumes borrowed 878,990 887,773 868,837 880,561 893,841 897,141 867,743 945,952 945,952 951,667 Water New connections 68 47 70 59 74 104 61 57 28 29 Water main breaks 34 65 41 45 78 48 36 52 52 38 Average daily consumption (millions of gallons)37.16 36.22 37.74 37.31 41.44 41.41 42.91 40.09 39.41 38.91 Peak daily consumption (millions of gallons)75.50 75.50 73.17 60.98 80.46 66.49 66.00 65.40 58.94 57.02 Note: Indicators are not available for general government functions Source: Various City departments -172- CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years Calendar Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Function/Program Police Number of Stations 1 1 1 1 1 1 1 1 1 1 Budgeted Sworn Officers 161 161 161 161 161 162 162 165 165 164 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)159 159 159 159 159 159 157 157 157 157 Fire hydrants 1347 1347 1347 1347 1347 1347 1370 1370 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 geveral government or library function Source: Various City departments -173- TAX INCREMENT FINANCING DISTRICT REQUIREMENTS -174- -175-