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HomeMy WebLinkAbout2008-2009 Annual Comprehensive Financial ReportCITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED February 28, 2009 Prepared by Finance 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 12 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS 14 MANAGEMENT'S DISCUSSION AND ANALYSIS 17 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 104 Firefighters' and Police Pension Funds - Schedules of Employer Contribution 105 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)106 INTRODUCTORY SECTION FINANCIAL SECTION i CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Notes to the Required Supplementary Information Digest of Changes - IMRF 107 Conversion from GAAP basis to Budgetary basis 107 GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 112 Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 117 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 122 Schedule of Expenditures - Budget and Actual (Budgetary Basis)129 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)131 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)132 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)133 Affordable Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)134 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)135 Schedule of Expenditures - Budget and Actual (Budgetary Basis)136 Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)139 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES FINANCIAL SECTION (Continued) ii CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 140 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 141 DEBT SERVICE FUNDS All Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)142 PROPRIETARY FUND TYPES Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 145 Nonmajor Proprietary Funds Statement of Cash Flows 146 WATER FUND Schedule of Net Assets 148 Schedule of Changes in Net Assets - Reserved - Restricted Accounts 150 Operation and Maintenance Account - Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual 151 Operation and Maintenance Account - Schedule of Operating Revenues Budget and Actual 152 INTERNAL SERVICE FUNDS All Funds Statement of Net Assets 154 Combining Statement of Revenues, Expenses, and Changes in Net Assets 155 Combining Statement of Cash Flows 156 AGENCY FUND Special Assessment Agency Fund Statement of changes of Assets and Liabilities 159 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) iii CITY OF EVANSTON, ILLINOIS Table of Contents PAGE 162 163 164 165 Assessed Value and Actual Valued of Taxable Property 166 Principal Property Tax Payers 167 Property Tax Levies and Collections (City) - Last Ten Levy Years 168 Ratio of General Bonded Debt Outstanding 169 Direct and Overlapping Governmental Activities 170 Pledged - Revenue Coverage 171 Demographic and Economic Statistics - Last Ten Years 172 Principal Employers 173 Full-Time Equivalent City Government Employees by Function 174 Property Tax Rates per $100 - Direct and Overlapping Governments 175 Water Sold by Type of Customer (in 100 cubic feet) 176 Water Sold by Major Customers 177 Operating Indicators by Function/Program 178 Capital Assets Statistics by Function 179 Independent Accountants' Report on Compliance - Tax Increment Financing Districts 181 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) 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, 2009 Mayor Lorraine H. Morton Mayor Elizabeth B. Tisdahl Alderman Ward 1 Cheryl Wollin Alderman Ward 1 Judy Fiske Alderman Ward 2 Lionel Jean-Baptiste Alderman Ward 2 Lionel Jean-Baptiste Alderman Ward 3 Melissa A. Wynne Alderman Ward 3 Melissa A. Wynne Alderman Ward 4 Steven J. Bernstein Alderman Ward 4 Donald N. Wilson Alderman Ward 5 Delores A. Holmes Alderman Ward 5 Delores A. Holmes Alderman Ward 6 Edmund B. Moran, Jr.Alderman Ward 6 Mark Tendam Alderman Ward 7 Elizabeth B. Tisdahl Alderman Ward 7 Jane Grover Alderman Ward 8 Ann Rainey Alderman Ward 8 Ann Rainey Alderman Ward 9 Anjana Hansen Alderman Ward 9 Coleen Burrus Patricia P. Ford, Payroll Manager Jewell Jackson, Purchasing Manager Rolanda B. Russell, Interim City Manager Wally Bobkiewicz, City Manager FINANCE DEPARTMENT Martin Lyons, Finance Director/Treasurer Wendy McCambridge, Administrative Adjudication Manager As of Report DateAs of February 28, 2009 CITY COUNCIL Richard Leipsiger, Revenue Manager EXECUTIVE As of February 28, 2009 As of Report Date Steven Drazner, Assistant Finance Director Hitesh Desai, Accounting Manager -2- MAYOR CITY COUNCIL HEALTH AND HUMAN SERVICES ADVISORY BOARDS AND COMMISSIONS FIRE POLICE LIBRARY RECREATION, PARKS AND FORESTRY CITY MANAGER COMMUNITY DEVELOPMENT FINANCE PUBLIC WORKS LAW HUMAN RESOURCES CITY OF EVANSTON ORGANIZATION CHART RESIDENTS CITY CLERK -3- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org August 20, 2009 The Honorable Mayor Elizabeth B. Tisdahl, Members of the City Council City of Evanston, Illinois INTRODUCTION The Comprehensive Annual Financial Report (CAFR) of the City of Evanston (City) for the fiscal year ended February 28, 2009 is hereby submitted. The CAFR is prepared by the City’s Finance Department in accordance with the financial reporting principles and standards of the Governmental Accounting Standards Board. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and capital assets of the City. All disclosures needed to enable the reader to understand the City's financial activities have been included. This report consists of management’s representations concerning the finances of the City of Evanston. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Evanston’s financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 as amended and U.S. Office of Management and Budget -4- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control structure and compliance with applicable laws and regulations, is to be presented in a separate single audit report. This report includes all the funds and capital assets of the City and its component unit. The Evanston Township Board of Trustees is the same individuals as the City Council members. The financial statements of Evanston Township are included in the reporting entity. Although the Township is a legally separate entity, it is considered a component unit and, therefore, data from the Township is blended with data of the City. The City’s financial statements have been audited by Baker Tilly Virchow Krause, LLP., a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Evanston for the fiscal year ended February 28, 2009, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates by management, and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City’s financial statements for the fiscal year ended February 28, 2009, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF EVANSTON The City: The City of Evanston constitutes many communities, perspectives, and qualities: it is a suburb, an urban center, a university town, and lake-front community; it has leafy neighborhoods and lake-front mansions; it has apartment, condominium, and student housing; its residents are commuters and locally employed workers; its downtown is prospering, but neighborhood commercial centers are also strong and developing. It is a part of the Chicagoland economy and has a vigorous commercial and professional economy of its own. A population of approximately 75,000 is diverse by race, religion, age, education, economics, and occupation. With 8,700 people per square mile, Evanston has double the population density of the average North and Northwest suburb, and approximately half the density of Chicago. The City has over 260 acres in 75 parks and 5 beaches. -5- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org Evanston is contiguous with Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It borders the north shore communities of Skokie and Wilmette. In 1863, the Village of Evanston was incorporated as a town and, after several annexations, in 1892, the town became a city. The City’s southern boundary was established with the City of Chicago and the present City limits, encompassing an area of approximately eight square miles, have been essentially the same ever since. The City has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University, so named as it was established to serve the Northwest Territory. The University first platted the village which surrounded it. The State Legislature named the Village “Evanston” in honor of Dr. John Evans, the then president of the University’s Board. About 4,150 students live in university housing; another 900 live in fraternities and sororities. Roughly 600 live in two graduate student-housing complexes and approximately 2,600 live off-campuses, mostly in privately owned apartments in Evanston. The Government: The City is a home rule municipality under the Illinois Constitution. As such, it has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the increase of debt or the imposition of real property taxes. The City has a Council/Manager form of government with an elected Mayor. The Mayor is elected for a four-year term. The Aldermen each represent one of nine wards and are elected to terms of four years. The City Council is organized into five standing committees: Administration and Public Works, Budget, Human Services, Planning and Development, and Rules. The City Council has also established several special committees and commissions and advisory boards. The City Manager is the Chief Administrative Officer of the City and is responsible for the management of all City operations under the direction of the City Council. The City Manager appoints and supervises the directors of the City’s eleven departments. The Finance Director is responsible for the central financial functions of the City. The City provides a broad range of municipal services, including police and fire protection, streets and parking, water and sewer service, public libraries, social services, health and services for the aging, beaches, parks, and cultural events. The City is engaged in assisting in community and economic development and maintains land use controls. Schools are provided by separate school districts, governed by elected school boards. A portion of the City is served by the Skokie Park District. Wastewater treatment is provided by the Metropolitan Water Reclamation District. -6- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org Budget Process: The City’s fiscal year begins on March 1 of each year. The City Manager submits to the City Council a proposed operating budget in December for the fiscal year commencing the following March 1. The operating budget includes proposed expenditures and the means of financing those expenditures. The City Council holds public hearings and then may modify the budget prior to adoption. The City Manager is authorized to transfer budgeted amounts between departments within any fund (such as the General Fund); however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America except that 1) property taxes are budgeted as revenue in the year for which they are levied and 2) encumbrances are recorded as the equivalent of an expenditure for budget purposes. For purposes of preparing the General Fund schedule of revenues – budget and actual, GAAP revenue and expenditures have been adjusted to the budgetary basis. The budgets of the governmental type funds are prepared on a modified accrual basis. Debt service payments and a number of specific accrued liabilities are only recognized as expenditures when payment is due, and revenue is recognized only when it has actually been received. The Comprehensive Annual Financial Report of the City (CAFR) presents expenditures and revenues on both a GAAP basis and a budget basis for comparison. The City uses funds to report on its financial position and the results of its operations. Fund accounting is designated to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or activities. A fund is a separate, self-balancing accounting entity. In the City, there are three categories of funds: governmental, proprietary, and fiduciary. Governmental funds are used to account for all or most of the City’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital project funds), and the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the City not accounted for in some other fund. In the fiscal year 2009/2010, the City projects that 38.3% ($89.7 million) of all City expenditures will occur in the General Fund. Other major funds include the Capital Improvement, Parking, Water, and Sewer Funds. The Enterprise Funds (Water and Sewer) are operated and budgeted on a full accrual basis. Expenditures are recognized when a commitment is made (through a purchase order), and revenues are recognized when they are obligated to the City (for example, water user fees are recognized as revenue when bills are produced). -7- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board. The accounts of the City are divided into separate self-balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. The City’s expenditures are monitored on a regular basis by the Finance Department and Budget Department. Disbursements are made only if expenditures are within the authorized appropriation. For every major expenditure, a purchase order is prepared and approved and the related appropriation is encumbered before a check is issued. MAJOR INITIATIVES Some major initiatives the City has undertaken during the fiscal year which the City believes will ultimately improve the quality of life for its residents are as follow: The Police Department started renovation of the Criminal Investigations Division offices, including the Detective, Juvenile and Social Services Bureaus. Parks/Forestry & Recreation continues to identify, develop and submit grants for all five divisions. As of September 2008, the following grants were awarded: Open Space and Land Acquisition Development (OSLAD) grant from the Illinois Department of Natural Resources for the redevelopment of Foster Field; Local Arts Agency Program grant from the Illinois Arts Council; a Community Arts Access grant from the Illinois Arts Council; a Summer Food Program grant from the U.S. Department of Agriculture through the Illinois State Board of Education; Community Development Block Grant award for renovation of the Fleetwood-Jourdain Community Center’s kitchen and arts + crafts room; a donation from the Chicago Tennis Patrons supporting junior tennis programs; a donation from the Evanston Kiwanis Club for a drop-in golf program; NRPA’s Take Me Fishing initiative named Evanston as an Anchor Agency and awarded a grant to support fishing program efforts; Quality Counts program grant funded by the Illinois Department of Human Services administered by Illinois Action for Children for laptop computers and activity tables for Fleetwood-Jourdain Center’s After-School Program; and a Sticks for Kids equipment grant awarded by the National Recreation & Park Association and the Golf Course Builders Association of America to be used for Chandler-Newberger Community Center's youth golf program. -8- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org In the Health and Human Services Department the initial steps for establishing a civilian medical reserve corps have been taken. Emergency management staff and public health staff have held their first orientation for health professionals who responded to the City's first recruitment. All food service inspection reports have become available online. An EPLAN (Evanston Project for Local Assessment of Needs) community health needs assessment was approved by the Human Services Committee and submitted to the Illinois Department of Public Health for their review and approved October 2008. Fire Station #5 has been completed. In addition, all of the Department paramedics were offered Advanced Pediatric Life Support training in 2008. Public Works staff continued to produce results and deliver services at a high level. Street resurfacing (including work associated with water main replacement and sewer work) was completed on time and within budget. The last project in the City's Long-Range Sewer Plan was completed. A 20-year Multi-modal Transportation Plan was completed as was a 10-year bridge plan. The Ridge Avenue Roadway and Relief Sewer Improvement were completed. The residential street light upgrade project was completed. The Bike Plan implementation was completed and the first phase of bike rack installations occurred. Numerous initiatives in Streets and Sanitation were implemented on time and within budget, such as conversion from night sweeping to day sweeping, bulk trash pick-up program, two pilot recycling programs, and most significant was the passage of a Municipal Solid Waste Franchise that went into effect on November 1, 2008. In the City’s Library Division, construction of the new Children’s Room and Young Adult Room were completed on time and within budget. “Room to Grow” capital campaign for the youth service renovation project exceeded its fundraising goal. The Library’s annual campaign “the Fund for Excellence” supplemented the Library’s materials budget with $85,000 in purchases during the fiscal year. The Legal Department completed legal training and management development for staff attorneys. The Department reinstituted general review and modernization of the Evanston City Code and reviewed tax increment financing expenditures for existing TIF districts in conjunction with anticipated expiration of existing TIFs. In the Finance Department, the fiscal year 2008 Comprehensive Annual Financial Report was completed and received the GFOA Certificate of Achievement Award. The Parking Citation Management System (Duncan) has been implemented while the Licensing/Permit Management System (Accela) is in the process of implementation. The City also purchased a new utility billing software to handle all water billing related issues. A refunding of prior issued debt was successfully accomplished, thus saving the City thousands of dollars in interest expense. A new CIP report format was implemented and the City received the GFOA distinguished budget award for FY2009. -9- 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org In the City Manager’s Office, staff continues to work toward the goals and objectives of the 2006 Strategic Plan. Staff has evaluated and will recommend purchase of a customer relationship management system that would include both aldermanic and citizen requests which will provide for greater accountability and timeliness in responding to such requests. The CMO will continue to improve operational efficiencies through alignment of services with departments, while achieving significant budgetary savings. FACTORS AFFECTING FINANCIAL CONDITION The following are factors which give a broader context to the financial information contained in this CAFR report. Local Economy: The global economy continued to deteriorate during the year which trickled down to local economy in terms of an extreme slowdown in the real estate market and overall spending patterns. Should things begin to improve, the City should see a nice improvement in all revenue sources but particularly with real estate transfer tax income and sales tax revenues. Risk Management: The City has in place a new third third-party administrator for its liability and workers’ compensation claims. Additionally, more staff and resources are being dedicated to internal risk management and formal safety training programs are being investigated for those employees most prone to injury due to the nature of their work. Pension and Other Post retirement Benefits: The City sponsors a single-employer defined benefit pension plan for both its police and firefighters. Each year, an independent actuary engaged by the City calculates the amount of the annual contribution that the City must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. As a matter of Budget Policy, the City fully funds each year’s annual required contribution to the pension plans as determined by the actuary. The City also provides pension benefits for its non-public safety employees. The benefits are provided through a state-wide plan managed by the Illinois Municipal Retirement Plan (IMRF). The City funding contribution rate changes each year based on investment returns and the annual City contribution rate changes annually as determined by the Plan. The City provides deferred compensation plan (Section 457 plan) for its employees. This is administered by Nation wide Retirement solutions for Fire employees and by ICMA (International City/County Management Association) Retirement Corporation for all other employees. The employees contribute on a tax deferred basis fixed dollar amount or percentage of their salary. Besides this, PEHP (Post Employment Health Plan) is also -10- -11- Certificate of Presented to City of Evanston For its Comprehensive Annual February 29, 2008 President Executive Director Financial Report for the Fiscal Year Ended Reporting in Financial for Excellence Achievement Text38:Illinois A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. -12- FINANCIAL SECTION -13- INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS -14- FINANCIAL HIGHLIGHTS A. B. C. D. E. USING THIS ANNUAL REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS FEBRUARY 28, 2009 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 $15,326,025 (or 5.7%) from the prior fiscal year reported (FY 2008). The governmental net assets decreased by $1,886,294 (or 2.3% from FY 2008) and the business-type activities net assets increased by $17,212,319 (or 9.3% from FY 2008). The governmental activities revenue increased by $1,916,151 (or 1.5%) from the prior year. The expenditures decreased by $3,947,398 (or 3.2%). The business-type activities revenue decreased by $471,785 (or 1.3%). The expenditures increased by $16,954 (or 0.06%) from the prior year. The total cost of all City programs decreased by $3,930,444 or 2.5%. The City of Evanston issued general obligation debt series 2008A (refunding 2000D bonds), 2008B (refunding 2002A bonds) and 2008C series (Capital Improvement Plan) in the total amount of $43,950,000 during the early part of the current fiscal year. The City later issued series 2008D bonds to current refund $19,585,000 of the outstanding amount of 1999 bonds. 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. (Unaudited) -17- REPORTING THE CITY AS A WHOLE Government-wide Financial Statements 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 City's annual report includes two government-wide financial statements. These statements provide both long- term and short-term information about the City's overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The first of these government-wide statements is the Statement of Net Assets.This is the City-wide statement of financial position presenting information that includes all the City's assets and liabilities, with the difference reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City as a whole is improving or deteriorating. Evaluation of the overall health of the City would extend to other non-financial factors such as diversification of the taxpayer base or the condition of City infrastructure, in addition to the financial information provided in this report. The second government-wide statement is the Statement of Activities which reports how the City's net assets changed during the current fiscal 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. 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. (Unaudited) -18- Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of the short-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. Budgetary comparison statements are included in the basic financial statements for the general fund and major special revenue fund. Budgetary comparison schedules for the other special revenue funds and the debt service fund can be found in a later section of this report. These statements and schedules demonstrate compliance with the City's adopted and final revised budget. The basic government fund financial statements are presented on pages 30 - 31 of this report. Proprietary funds reported in the fund financial statements generally report services for which the City charges customers a fee. There are two kinds of proprietary funds. These are enterprise funds and internal service funds. Enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. Services such as the water utilities and the parking garages, are provided to customers external to the City organization. Internal service funds provide services and charge fees to customers within the City organization, such as equipment services (repair and maintenance of city vehicles) and the insurance fund. Because the City's internal service funds primarily serve governmental functions, they are included within the governmental activities of the government-wide financial statements. Proprietary fund statements and statements for discretely presented component units (reporting is similar to proprietary funds) provide both long-term and short-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 and nonmajor enterprise 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 employee 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 103 - 107 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 112. Additional information on capital assets and long-term debt can be found on page 63 and 73 respectively. (Unaudited) -19- Financial Analysis of the City as a Whole 2009 2008 2009 2008 2009 2008 Current and Other Assets $130,202,506 $136,518,792 $35,759,899 $33,165,483 $165,962,405 $169,684,275 Capital Assets 152,418,411 146,761,654 332,618,681 328,070,154 485,037,092 474,831,808 Total Assets 282,620,917 283,280,446 368,378,580 361,235,637 650,999,497 644,516,083 Long-Term Liabilities 158,340,533 158,703,507 161,850,922 173,360,998 320,191,455 332,064,505 Other Liabilities 43,225,424 41,635,685 4,555,215 3,114,515 47,780,639 44,750,200 Total Liabilities 201,565,957 200,339,192 166,406,137 176,475,513 367,972,094 376,814,705 Net Assets Investment in Capital assets, net of Debt 30,384,446 31,541,654 172,398,892 159,184,804 202,783,338 190,726,458 Restricted 25,078,442 23,168,727 1,987,334 1,986,369 27,065,776 25,155,096 Unrestricted 25,592,072 28,230,873 27,586,217 23,588,951 53,178,289 51,819,824 Total Net Assets $81,054,960 $82,941,254 $201,972,443 $184,760,124 $283,027,403 $267,701,378 Governmental Funds: The governmental activities experienced a net fund balance decrease of $1,886,294. This was primarily due to an increase of $3,750,790 in the transfers out to business type funds and offset by increased revenues. Business Funds: The business-type activity fund balance experienced an increase in net assets of $17,212,319. This is primarily due to a surpluses in the Water & Sewer Funds of a combined $7,101,477 and a surplus of $10,110,842 from the consolidated Parking Fund. Governmental Activities Business-type Activities Total Primary Government The City's total revenues increased by $1,444,366 or 0.9%. The City's total expenditures for all programs decreased by $3,930,444, or 2.5%. Governmental activity total revenue increased $1,916,151 primarily due to higher property taxes. Expenditures in the governmental activities decreased by $3,947,398, primarily due to lesser amounts spent in general management and support and interest expense. The revenue for business-type funds decreased slightly from $35,227,700 to $34,755,915 or $471,785. This is due to decreased amount of $681,169 in interest income. In summary, overall revenues increased $1,444,366, primarily from tax incremental fund property taxes while expenses decreased primarily due to lesser amounts spent in general management and support and interest expense. The City's combined net assets increased by $15,326,025 from FY 2008 - an increase from $267,701,378 to $283,027,403. STATEMENT OF NET ASSETS (Unaudited) -20- 2009 2008 2009 2008 2009 2008 Revenue Program Revenues: Charges for services $28,274,175 $31,678,323 $34,178,159 $33,940,877 $62,452,334 $65,619,200 Operating grants and contributions 5,117,149 5,982,191 5,117,149 5,982,191 Capital grants and contributions 113,000 117,569 113,000 117,569 General Revenues: Sales taxes 15,499,781 16,172,072 15,499,781 16,172,072 Property taxes 56,217,108 48,360,338 56,217,108 48,360,338 Utility taxes 8,802,973 8,537,098 8,802,973 8,537,098 Other taxes 17,880,644 15,848,537 (27,898)17,852,746 15,848,537 Investment income 360,133 3,652,684 605,654 1,286,823 965,787 4,939,507 Total Revenue 132,264,963 130,348,812 34,755,915 35,227,700 167,020,878 165,576,512 Expenses General management and support 18,017,293 20,072,484 18,017,293 20,072,484 Public safety 49,484,161 48,762,564 49,484,161 48,762,564 Public works 21,627,529 21,566,199 21,627,529 21,566,199 Health and human resources development 4,545,632 4,982,385 4,545,632 4,982,385 Recreation and cultural opportunities 20,001,518 20,634,114 20,001,518 20,634,114 Housing and economic development 6,964,810 7,090,110 6,964,810 7,090,110 Interest 4,041,342 5,521,827 4,041,342 5,521,827 Water 9,390,801 8,668,290 9,390,801 8,668,290 Sewer 8,725,626 8,972,020 8,725,626 8,972,020 Sherman garage 4,269,860 4,269,860 Maple avenue garage 2,682,440 2,682,440 Motor vehicle parking system 8,896,141 2,403,004 8,896,141 2,403,004 Total Expense 124,682,285 128,629,683 27,012,568 26,995,614 151,694,853 155,625,297 Increase in net assets before transfer 7,582,678 1,719,129 7,743,347 8,232,086 15,326,025 9,951,215 Transfers (9,468,972) (5,115,939) 9,468,972 5,115,939 Increase/(Decrease) in (1,886,294) (3,396,810) 17,212,319 13,348,025 15,326,025 9,951,215 Net Assets Net Assets - Beginning 82,941,254 86,338,064 184,760,124 171,412,099 267,701,378 257,750,163 Net Assets - Ending $81,054,960 $82,941,254 $201,972,443 $184,760,124 $283,027,403 $267,701,378 The following table provides a summary of the City's changes in net assets: STATEMENT OF CHANGES IN NET ASSETS Governmental Activities Business-type Activities Total Primary Government (Unaudited) -21- Financial Analysis of the City's Funds Governmental Funds Proprietary Funds As discussed, governmental funds are reported in the fund statement with a short-term, inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. Governmental funds reported ending fund balances of $84,038,454 as a year-end total which includes $21,515,605 unreserved/undesignated, $29,491,628 unreserved/designated and $33,031,221 reserved. The reserved fund balance consists of amounts required to be set aside by external authorities as well as capital (unspendable) assets. Major Governmental Funds The General Fund is the City's primary operating fund and the largest source of day-to-day service delivery. The fund balance of the General Fund decreased by $4,920,699 primarily due to transfers to the Police and Fire Pensions in the amount of $4,582,486. Some revenues that came in better than anticipated were the athletic tax, gas utility tax, parking Tax, building/right of way permits, state income tax and charges for services. Departments in which expenditures materially exceeded budget include police, fire and streets divisions and is primarily attributable to overtime, termination payouts, and large expenditures associated with snow removal due to a harsh winter season. Combined Non-Major Governmental Funds Combined non-major fund balances totaled $49,821,155, an increase of $1,725,629 from prior year of $48,095,526. Non- major funds with materially annual surpluses include Special Assessment, Economic Development, Township, General Obligation Debt, Central Business District TIF, Howard Hartrey TIF, and West Evanston TIF. Non-major funds with annual deficits included the Motor Fuel, Library, E911, Southwest TIF, Washington National TIF and Central Business District TIF CIP. The Capital improvements fund accounts for the City's Capital improvement program. The program includes improvements to public buildings, paving of City streets, improvement and development of recreation facilities and other improvements. The fund balance of the Capital improvements fund decreased by $722,083, from $13,912,566 to $13,190,483. The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long-term information about financial status. The main proprietary funds operated by the City are the Water, Sewer, and Parking Funds, whereas the non-major proprietary funds include the Maple Garage and Sherman Garage which were consolidated and their fund balances transferred into the Parking fund as of the end of the fiscal year. The Water and Sewer funds have combined increase of $7,101,477 in the net assets primarily due to the accrual method of accounting and applying debt principal payments against the outstanding debt liability. The Parking, Maple and Sherman garages added $10,110,842 to the net assets during the year for a reason similiar to the surplus in the Water and Sewer Funds. Although fund balances in these proprietary funds showed a healthy increase, it is important to keep in mind that these Funds carry a heavy debt level and therefore, large debt payments will be required in the future. Internal Service Funds The City's combined internal service funds net assets decreased by $1,567,622 from $6,772,702 as of February 29, 2008 to $5,205,080 as of February 28, 2009 due to a level of disbursements paid out without a corresponding amount of incoming revenues (interfund transfers-in) to cover these expenditures. (Unaudited) -22- General Fund Budgetary Highlights Capital Assets Long-Term Debt Bond Ratings Economic Factors Total actual revenues for the General fund were $82,548,904 while total expenditures were $92,973,290. Actual revenues in the General Fund came in short of budget primarily due to decreases in real estate transfer, sales tax, and interest income revenues sources due to a deterioration of the overall economy. Total expenditures in the General Fund were less than budgted amounts by $1,399,391 due to early retirements and other cost saving measures in various operating divisions. Evanston is a diverse community consisting primarily of residential homes, several non profit organizations including a very well known private university, and many smaller scale retail shops/restaurants as well as some popular, big box retailers. In general, economically sensitive revenues such as sales tax, real estate transfer taxes, business licenses and grants came in well below budgeted revenues. Sales tax receipts, a good indicator of economic health, came in slightly less than budget because of the current economic conditions. Most other revenues remained relatively flat with few exceptions. The unemployment rate in Evanston has increased at a similar pace as many other cities in the State. The primary employers in the City include universities, 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. The City may also experience a lag in the impact of the economic downturn as the non-profit sector follows the rest of the economy. 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, 2009, was $485,037,092. The total increase in governmental funds and business type activity funds were $5,656,757 and $4,548,527 respectively. The overall percent increase in capital assets was 2.1% for the City as a whole. Major capital asset increases during the current fiscal year were primarily attributed to capitalized construction in progress, Sewer System and Infrastructure. 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 $174,110,001, of which $55,983,865 was for business type activities paid by the City's Parking, Sewer, Maple, and Sherman Garage Funds. During the current year, the City issued series 2008A, 2008B and 2008C bonds for $43,950,000 in fixed rate general obligation bonds for various City capital project requirements which also included a current refunding of series 2000D bonds for $3,900,000 and a 2002A bonds for $27,700,000. The City also issued series 2000D bonds to current refund $19,585,000 of the outstanding amount of 1999 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 Aa1 by Moody's Investor Rating Service and AAA by Fitch Ratings. Evanston City Water Fund revenue bonds are rated Aa1 and AA for uninsured issues. (Unaudited) -23- 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 Finance Department at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201 or access the website at www.cityofevanston.org. (Unaudited) -24- BASIC FINANCIAL STATEMENTS -25- CITY OF EVANSTON, ILLINOIS Statement of Net Assets Governmental Business-type Activities Activities Total Cash and equivalents $ 61,907,761 $ 21,111,607 $ 83,019,368 Investments 1,703,704 - 1,703,704 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 50,933,227 - 50,933,227 Accounts - 4,149,324 4,149,324 Notes 6,361,234 - 6,361,234 Special assessments 886,662 - 886,662 Accrued interest 18,462 15,017 33,479 Other 3,096,147 46,744 3,142,891 Due from other governments 6,060,845 - 6,060,845 Internal balances (1,040,345) 1,040,345 - Inventories 267,572 827,738 1,095,310 Restricted assets Cash and equivalents and investments - 8,310,124 8,310,124 Capital assets Capital assets not being depreciated 31,225,284 16,598,950 47,824,234 Capital assets (net of accumulated depreciation)121,193,127 316,019,731 437,212,858 Other assets 7,237 259,000 266,237 Total Assets 282,620,917 368,378,580 650,999,497 February 28, 2009 Primary Government Assets The accompanying notes are an integral part of this statement. -26- Governmental Business-type Activities Activities Total Vouchers payable $ 4,120,463 $ 1,391,550 $ 5,512,013 Accrued payroll 2,366,980 - 2,366,980 Interest payable 1,159,219 383,619 1,542,838 Other payables 245,897 6,887 252,784 Due to other governments 6,682 - 6,682 Due to pension funds 3,331,373 - 3,331,373 Payable from restricted assets Vouchers payable - 1,736,996 1,736,996 Interest payable - 1,036,163 1,036,163 Unearned revenue 31,994,810 - 31,994,810 Noncurrent liabilities Payable from restricted assets - due within one year - 10,647,035 10,647,035 Due within one year 15,265,371 13,782,682 29,048,053 Due in more than one year 143,075,162 137,421,205 280,496,367 Total Liabilities 201,565,957 166,406,137 367,972,094 Investment in capital assets, net of related debt 30,384,446 172,398,892 202,783,338 Restricted Culture and recreation 851,878 - 851,878 Capital improvements - 800,000 800,000 Debt service 23,826,206 1,187,334 25,013,540 Other 400,358 - 400,358 Unrestricted 25,592,072 27,586,217 53,178,289 Total Net Assets $ 81,054,960 $ 201,972,443 $ 283,027,403 Primary Government Liabilities Net Assets -27- CITY OF EVANSTON, ILLINOIS Statement of Activities Functions/Programs Governmental activities: General management and support $ 18,017,293 $ 13,347,538 $- Public safety 49,484,161 1,524,787 36,378 Public works 21,627,529 702,780 2,031,686 Health and human resource development 4,545,632 1,429,534 581,129 Recreation and cultural opportunities 20,001,518 4,637,300 - Housing and economic development 6,964,810 6,632,236 2,467,956 Interest 4,041,342 - - Total governmental activities 124,682,285 28,274,175 5,117,149 Business-type activities: Water 9,390,801 13,685,196 - Sewer 8,725,626 13,773,957 - Motor vehicle parking system 8,896,141 6,719,006 - Total business-type activities 27,012,568 34,178,159 - Total $ 151,694,853 $ 62,452,334 $ 5,117,149 General revenues: Property tax Other taxes Personal property replacement tax Sales and home rule tax Income tax Utility tax Gain (Loss) on sale of capital assets Miscellaneous Investment income Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending Expenses Services Contributions Charges for Grants and Year ended February 28, 2009 Program Revenues Operating The accompanying notes are an integral part of this statement. -28- $ - $ (4,669,755) $- $ (4,669,755) - (47,922,996) - (47,922,996) - (18,893,063) - (18,893,063) - (2,534,969) - (2,534,969) - (15,364,218) - (15,364,218) 113,000 2,248,382 - 2,248,382 - (4,041,342) - (4,041,342) 113,000 (91,177,961) - (91,177,961) - - 4,294,395 4,294,395 - - 5,048,331 5,048,331 - - (2,177,135) (2,177,135) - - 7,165,591 7,165,591 $113,000 (91,177,961) 7,165,591 (84,012,370) 56,217,108 - 56,217,108 7,575,381 - 7,575,381 1,440,614 - 1,440,614 15,499,781 - 15,499,781 6,821,169 - 6,821,169 8,802,973 - 8,802,973 - (27,898) (27,898) 2,043,480 - 2,043,480 360,133 605,654 965,787 (9,468,972) 9,468,972 - 89,291,667 10,046,728 99,338,395 (1,886,294) 17,212,319 15,326,025 82,941,254 184,760,124 267,701,378 $ 81,054,960 $ 201,972,443 $ 283,027,403 Total Business-type Contributions Activities Activities Grants and Governmental Net (Expense) Revenue and Changes in Net Assets Capital -29- CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet Nonmajor Total Capital Governmental Governmental General Improvements Funds Funds Cash and equivalents 11,615,911$ 13,897,422$ 31,985,335$ 57,498,668$ Investments - - 1,703,704 1,703,704 Receivables Property taxes (net of allowance) 14,995,648 - 35,937,579 50,933,227 Notes (net of allowance)- - 6,361,234 6,361,234 Special assessments - - 886,662 886,662 Accrued interest - - 18,462 18,462 Other 2,808,053 - 254,557 3,062,610 Building held for resale - - 410,000 410,000 Due from other governments 5,856,040 - 204,805 6,060,845 Due from other funds 290,877 67,977 808,897 1,167,751 Other assets 7,237 - - 7,237 Total Assets 35,573,766$ 13,965,399$ 78,571,235$ 128,110,400$ Liabilities Vouchers payable 2,517,228$ 774,916$ 592,059$ 3,884,203$ Accrued payroll 2,366,980 - - 2,366,980 Compensated absences payable 80,963 - - 80,963 Other 242,640 - 3,257 245,897 Due to other governments - - 6,682 6,682 Due to other funds 133,437 - 5,358,974 5,492,411 Deferred revenues 9,205,702 - 22,789,108 31,994,810 Total Liabilities 14,546,950 774,916 28,750,080 44,071,946 Fund Balances Reserved 1,274,562 - 31,346,659 32,621,221 Reserved for HUD Approved Projects - - 410,000 410,000 Unreserved designated General fund 5,426,913 - - 5,426,913 Capital improvement funds - 13,190,483 - 13,190,483 Capital project funds - - 7,708,627 7,708,627 Special revenue funds - - 3,165,605 3,165,605 Unreserved undesignated Special revenue funds - - 7,190,264 7,190,264 General fund 14,325,341 - - 14,325,341 Total Fund Balances 21,026,816 13,190,483 49,821,155 84,038,454 Total Liabilities and Fund Balances 35,573,766$ 13,965,399$ 78,571,235$ 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.145,779,027 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.(152,167,426) OPEB liability payable is not due and payable in the current period and therefore, is not reported in the governmental funds.(640,956) Interest acrrual from last interest payment (December 1, 2008 or January 1, 2009) to February 28, 2009.(1,159,219) The net assets of the internal service fund are included in the governmental activities in the statement of net assets.5,205,080 Net assets of governmental activities 81,054,960$ February 28, 2009 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 Nonmajor Total Capital Governmental Governmental General Improvements Funds Funds Revenues Taxes 40,173,003$ -$ 43,861,991$ 84,034,994$ Licenses and permits 8,820,280 - - 8,820,280 Special assessments - - 516,168 516,168 Intergovernmental 16,391,753 113,000 4,508,101 21,012,854 Charges for services 8,399,042 - - 8,399,042 Fines and forfeits 4,442,282 - - 4,442,282 Investment income 240,988 293,789 (262,779) 271,998 Miscellaneous 3,980,418 416,436 282,356 4,679,210 Total Revenues 82,447,766 823,225 48,905,837 132,176,828 Expenditures Current General management and support 12,709,098 2,287,551 1,501,780 16,498,429 Public safety 38,453,587 360,097 11,185,688 49,999,372 Public works 16,393,126 817,343 1,702,613 18,913,082 Health and human resource development 3,745,632 - 800,000 4,545,632 Recreation and cultural opportunities 18,485,225 366,605 90,452 18,942,282 Housing and economic development 3,301,478 - 3,661,989 6,963,467 Debt service Principal - - 9,885,000 9,885,000 Interest - - 5,142,184 5,142,184 Fiscal agent fees - - 27,650 27,650 Capital outlay - 7,823,903 384,925 8,208,828 Total Expenditures 93,088,146 11,655,499 34,382,281 139,125,926 Excess (Deficiency) of Revenues Over (Under) Expenditures (10,640,380) (10,832,274) 14,523,556 (6,949,098) Other Financing Sources (Uses) Transfers in 5,415,600 - 511,644 5,927,244 Transfers out - (300,000) (14,493,973) (14,793,973) Issuance of debt 304,081 10,410,191 13,660,000 24,374,272 Premiums and discounts - - 804,606 804,606 Escrow funding - - (13,280,204) (13,280,204) Total Other Financing Sources (Uses)5,719,681 10,110,191 (12,797,927) 3,031,945 Net Change in Fund Balances (4,920,699) (722,083) 1,725,629 (3,917,153) Fund Balances -Beginning of Year 25,947,515 13,912,566 48,095,526 87,955,607 Fund Balances - End of Year 21,026,816$ 13,190,483$ 49,821,155$ 84,038,454$ Year ended February 28, 2009 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 $ (3,917,153) 5,126,526 23,615,000 (25,081,112) 357,743 (344,368) (75,308) Internal service funds are reported separately in the fund financial statements.(1,567,622) Change in net assets of governmental activities $ (1,886,294) 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. Interest accrual from last interest payment (December 1, 2008 or January 1, 2009) to February 28, 2009. 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. Issuance of 2008 Bonds provides current financial resources to governmental funds, while the repayment of the principal of long term debt and capital lease expenditure consume the current financial resources of governmental funds. Neither transaction has any effect on net assets. Governmental funds also report the effect of bonds premiums, discounts, and similar items when debt is first issued. 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. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended February 28, 2009 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 7,006,178$ -$ 14,105,429$ 21,111,607$ 4,409,093$ Restricted cash and equivalents and investments 2,442,692 5,867,432 - 8,310,124 - Receivables Accounts - billed 941,803 266,076 - 1,207,879 - Accounts - unbilled 821,253 2,120,192 - 2,941,445 - Accrued interest 15,017 - - 15,017 - Other 6,887 - 39,857 46,744 33,537 Due from other funds - 366,947 850,312 1,217,259 - Inventories 639,684 188,054 - 827,738 267,572 Total Current Assets 11,873,514 8,808,701 14,995,598 35,677,813 4,710,202 Noncurrent Assets Capital Assets Capital assets not being depreciated 4,081,512 9,523,292 2,994,146 16,598,950 - Capital assets being depreciated 67,068,536 232,599,878 77,963,636 377,632,050 20,308,430 Less accumulated depreciation (18,207,726) (31,714,968) (11,689,625) (61,612,319) (14,079,046) Total Capital Assets 52,942,322 210,408,202 69,268,157 332,618,681 6,229,384 Other Assets Notes Receivable - - 259,000 259,000 - Total Noncurrent Assets 52,942,322 210,408,202 69,527,157 332,877,681 6,229,384 Total Assets 64,815,836 219,216,903 84,522,755 368,555,494 10,939,586 February 28, 2009 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 686,225$ 167,744$ 537,581$ 1,391,550$ 236,260$ Vouchers payable - restricted 352,599 1,384,397 - 1,736,996 - Interest payable - - 383,619 383,619 - Interest payable - restricted 15,259 1,020,904 - 1,036,163 - Revenue bonds payable 437,500 - - 437,500 - Revenue bonds payable - restricted 87,500 - - 87,500 - Compensated absences payable 309,768 68,408 50,532 428,708 80,389 General obligation bonds payable - - 12,916,474 12,916,474 - General obligation bonds payable - restricted - 2,550,125 - 2,550,125 - Claims payable - - - - 2,395,337 Notes payable - Sewer IEPA Loans - restricted - 8,009,410 - 8,009,410 - Due to other funds 104,046 23,275 49,593 176,914 47,058 Other Payable 6,887 - - 6,887 - Total Current Liabilities 1,999,784 13,224,263 13,937,799 29,161,846 2,759,044 Long-Term Liabilities Notes payable - Sewer IEPA Loans - 93,765,813 - 93,765,813 - General obligation bonds payable - 13,560,433 26,956,833 40,517,266 - OPEB liability payable 20,709 4,604 4,852 30,165 12,199 Revenue bonds payable 1,720,000 - - 1,720,000 - Unamortized bond discount/premium 14,677 378,599 763,696 1,156,972 - Compensated absences payable 166,904 36,858 27,227 230,989 - Claims payable - - - - 2,963,263 Total Long-Term Liabilities 1,922,290 107,746,307 27,752,608 137,421,205 2,975,462 Total Liabilities 3,922,074 120,970,570 41,690,407 166,583,051 5,734,506 Invested in capital assets, net of related debt 50,770,145 92,510,769 29,117,978 172,398,892 6,229,384 Restricted for debt service 1,187,334 - - 1,187,334 - Restricted for capital improvements 800,000 - - 800,000 - Unrestricted 8,136,283 5,735,564 13,714,370 27,586,217 (1,024,304) Total net assets 60,893,762$ 98,246,333$ 42,832,348$ 201,972,443$ 5,205,080$ 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 Nonmajor Internal Parking Proprietary Service Water Sewer System Funds Total Funds Operating Revenues Charges for services 13,208,340$ 13,748,122$ 3,521,244$ 3,088,665$ 33,566,371$ 6,328,600$ Miscellaneous 476,856 25,835 58,040 51,057 611,788 11,896 Total Operating Revenues 13,685,196 13,773,957 3,579,284 3,139,722 34,178,159 6,340,496 Operating Expenses Excluding Depreciation Administration 674,624 1,726,263 613,139 - 3,014,026 - Operations 7,192,285 472,485 1,271,692 3,283,451 12,219,913 6,883,659 Total Operating Expenses Excluding Depreciation 7,866,909 2,198,748 1,884,831 3,283,451 15,233,939 6,883,659 Operating Income (Loss) Before Depreciation 5,818,287 11,575,209 1,694,453 (143,729) 18,944,220 (543,163) Depreciation 1,417,334 3,033,718 216,060 1,757,103 6,424,215 1,225,265 Operating Income (Loss)4,400,953 8,541,491 1,478,393 (1,900,832) 12,520,005 (1,768,428) Nonoperating Revenues (Expenses) Investment income 193,637 121,612 19,930 270,475 605,654 88,135 Interest expense (107,687) (3,521,914) (63,937) (1,773,315) (5,466,853) - Bond expenses and amortization of discount 1,129 (30,786) - (4,060) (33,717) - Amortization of bond premium - 59,540 5,283 81,333 146,156 - Gain (loss) on disposition of assets (27,898) - - - (27,898) 112,671 Total Nonoperating Revenues (Expenses)59,181 (3,371,548) (38,724) (1,425,567) (4,776,658) 200,806 Income (Loss) before transfers and contributions 4,460,134 5,169,943 1,439,669 (3,326,399) 7,743,347 (1,567,622) Capital Contribution - Governmental Activities - 250,000 338,307 13,936 602,243 - Transfers In (Out) Central Business Tax Increment District - - - 1,872,829 1,872,829 - Washington National Tax Increment District - - - 5,300,000 5,300,000 - Motor Vehicle Parking System - - - (33,837,787) (33,837,787) - Sherman Garage - - 4,901,718 - 4,901,718 - Maple Avenue Garage - - 28,936,069 - 28,936,069 - Economic Development - - - 4,600,000 4,600,000 - General (2,778,600) - (777,500) 650,000 (2,906,100) - Total Transfers In (Out)(2,778,600) - 33,060,287 (21,414,958) 8,866,729 - Change in Net Assets 1,681,534 5,419,943 34,838,263 (24,727,421) 17,212,319 (1,567,622) Total Net Assets - Beginning of Year 59,212,228 92,826,390 7,994,085 24,727,421 184,760,124 6,772,702 Total Net Assets - End of Year 60,893,762$ 98,246,333$ 42,832,348$ -$ 201,972,443$ 5,205,080$ The accompanying notes are an integral part of this statement. Year ended February 28, 2009 Business-type Activities- Enterprise Funds -35- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Governmental Activities- Motor Vehicle Nonmajor Internal Parking Proprietary Service Water Sewer System Funds Total Funds Cash Flows from Operating Activities Receipts from customers and users 13,669,856$ 13,837,190 3,556,631$ 3,146,539$ 34,210,216$ 6,334,258$ Receipts from interfund services provided (42,805) - - 727,072 684,267 2,470 Payments to suppliers (6,831,585) (24,795) (1,253,380) (2,983,838) (11,093,598) (4,760,090) Payments to employees (662,254) (1,713,340) (616,389) - (2,991,983) (3,345,742) Payments for interfund services provided - (1,380,861) (30,537) (4,451,354) (5,862,752) 2,474 Net Cash Provided by (Used for) Operating Activities 6,133,212 10,718,194 1,656,325 (3,561,581) 14,946,150 (1,766,630) Cash Flows from Noncapital Financing Activities Transfers In (Out) Central Business Tax Increment District - - - 1,872,829 1,872,829 - Washington Tax Increment District - - - 5,300,000 5,300,000 - Motor Vehicle Parking System - - - (12,649,190) (12,649,190) - Sherman Garage - - 5,270,730 - 5,270,730 - Maple Avenue Garage - - 7,378,460 - 7,378,460 - Economic Development - - - 4,600,000 4,600,000 - General (2,778,600) - (777,500) 650,000 (2,906,100) - Net Cash Provided by (Used for) Noncapital Financing Activities (2,778,600) - 11,871,690 (226,361) 8,866,729 - Cash Flows from Capital and Related Financing Activities Sale of capital assets - - - - - 112,671 Acquisition and construction of capital assets (4,021,825) (6,825,517) (59,990) - (10,907,332) (1,755,496) Principal paid on revenue bonds (510,000) - - - (510,000) - Interest paid on revenue bonds (107,687) - - - (107,687) - Net proceeds from bond refundings - - - 55,000 55,000 - Proceeds from general obligation bonds - 2,412,793 - - 2,412,793 - Principal paid on general obligation bonds - (2,305,000) (675,000) (9,340,000) (12,320,000) - Interest paid on general obligation bonds - (977,522) (151,387) (1,409,827) (2,538,736) - Proceeds from bond premium - 438,139 36,978 813,334 1,288,451 - Principal paid on IEPA loans - (7,290,628) - - (7,290,628) - Interest paid on IEPA loans - (2,673,254) - - (2,673,254) - Proceeds from IEPA loans - 5,654,964 - - 5,654,964 - Net Cash (Used for) Capital and Related Financing Activities (4,639,512) (11,566,025) (849,399) (9,881,493) (26,936,429) (1,642,825) Cash Flows from Investing Activities Sale of investments - - - - - 6,928,631 Interest income 193,637 121,612 19,930 270,475 605,654 88,135 Net Cash Provided by Investing Activities 193,637 121,612 19,930 270,475 605,654 7,016,766 Net Increase (Decrease) in Cash and Equivalents (1,091,263) (726,219) 12,698,546 (13,398,960) (2,517,896) 3,607,311 Cash and Equivalents Beginning of year 10,540,133 6,593,651 1,406,883 13,398,960 31,939,627 801,782 End of year 9,448,870$ 5,867,432$ 14,105,429$ -$ 29,421,731$ 4,409,093$ Reconciliation Cash and equivalents Current Cash 7,006,178$ -$ 14,105,429$ -$ 21,111,607$ 4,409,093$ Restricted Current Cash 2,442,692 5,867,432 - - 8,310,124 - 9,448,870$ 5,867,432$ 14,105,429$ -$ 29,421,731$ 4,409,093$ Note: The City incurred a non-cash transaction of current debt refunding of $37,455,000. Year ended February 28, 2009 Business-type Activities- Enterprise Funds The accompanying notes are an integral part of this statement.Continued -36- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Governmental Activities- Motor Vehicle Nonmajor Internal Parking Proprietary Service Water Sewer System Funds Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss)4,400,953$ 8,541,491$ 1,478,393$ (1,900,832)$ 12,520,005$ (1,768,428)$ Depreciation 1,417,334 3,033,718 216,060 1,757,103 6,424,215 1,225,265 Changes in assets and liabilities Increase/decrease in A/R miscellaneous - - - - - (7,802) Other receivables 30,225 - (27,653) (3,580) (1,008) 1,564 Notes receivables - - 5,000 - 5,000 - Accounts receivable (45,565) 52,692 - - 7,127 - lnterfund receivable (42,805) - - 727,072 684,267 2,470 Inventories (6,676) 47,675 - - 40,999 105,458 Accrued interest receivable - 10,541 - 10,397 20,938 - Compensated absences 10,988 12,923 (3,565) - 20,346 (21,231) Accounts payable - - - - - (41,388) lnterfund payable - (1,380,861) (30,537) (4,451,354) (5,862,752) 2,474 OPEB liability payable 1,382 296 315 - 1,993 6,316 Vouchers payable 166,119 (3,856) 30,590 299,613 492,466 (1,476) Vouchers payable (restricted)204,483 377,468 - - 581,951 - Interest payable (3,226) 26,107 (12,278) - 10,603 - Claims payable - - - - - (1,269,852) Net Cash Provided by (Used for) Operating Activities 6,133,212$ 10,718,194$ 1,656,325$ (3,561,581)$ 14,946,150$ (1,766,630)$ Business-type Activities- Enterprise Funds Year ended February 28, 2009 The accompanying notes are an integral part of this statement.Concluded -37- CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets Pension Special Assessment Trust Funds Agency Fund Assets Cash and short-term investments 10,180,411$ 21,073$ Receivables Accrued interest 280,394 - Contribution receivable - Due from other funds 3,331,373 - Total Receivables 3,611,767 - Investments, at fair value U.S. Government obligations 44,180,237 - Common stock 6,455,343 - Mutual funds 32,449,981 - Total Investments 83,085,561 - Total Assets 96,877,739 21,073 Liabilities Vouchers payable 9,925 - Due to special assessment bondholders - 21,073 Total Liabilities 9,925 21,073 Net assets held in trust 96,867,814$ -$ February 28, 2009 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 14,294,084$ Plan members 1,908,741 Total contributions 16,202,825 Investment income Net appreciation (depreciation) in fair value of investments (18,458,788) Investment income 3,995,834 Total investment income (14,462,954) Less investment expense 292,123 Net investment income (14,755,077) Total additions 1,447,748 Deductions Benefits 12,366,962 Refunds of contributions 5,657 Administrative expense 76,413 Total deductions 12,449,032 Net increase (11,001,284) Net assets held in trust for pension benefits Beginning of year 107,869,098 End of year 96,867,814$ Year ended February 28, 2009 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 46 E. Cash and Equivalents 49 F. Investments 49 G. Inventories 49 H. Capital Assets 49 I. Compensated Absences 50 J. Long-Term Obligations 50 K. Self-Insurance 51 L. Property Taxes 51 M. Fund Equity 52 N. Interfund Transactions 52 O. Use of Estimates 52 P. Land held for resale 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 60 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 C. Capital Contribution 71 Note 8. Operating Leases 72 Note 9. Long-Term Debt A. Changes in Long-Term Debt 73 B. General Obligation Bonds Payable 76 C. Special Service District Bonds Payable 78 D. Revenue Bonds Payable 78 E. Notes Payable – Sewer IEPA Loans 79 F. Prior Years' General Obligation Bond Defeasances 79 G. Prior Years' Special Service District #5 Bond Defeasances 80 H. Post Employment benefits other than Pensions 81 I. Capital Leases 83 Note 10. Fund Equity A. Restrictions of Net Assets - Water Fund 84 B. Restricted Net Assets - Fiduciary Funds 84 C. Reservations of Fund Equity 85 D. Unrestricted Fund Equity - Designated 86 Note 11. Individual Fund Activities A. General Obligation Debt Service Fund 87 B. Water Fund 87 C. Special Service District No. 4 87 Note 12. Risk Management – Claims and Judgments 88 -41- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 13. Contingencies 89 Note 14. Joint Ventures A. Solid Waste Agency of Northern Cook County 89 B. Evanston Housing Corporation 91 Note 15. Deferred Compensation Plan 92 Note 16. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description 93 B. Funding Status and Progress 93 C. Annual Pension Cost 94 Police and Firefighters' Pension Plans D. Plan Descriptions 95 E. Summary of Significant Accounting Policies - Basis of Accounting 97 - Method Used to Value Investments 97 F. Contributions and Reserves 97 G. Concentration of Investments 99 H. Three-Year Trend Information – Pension Trust Funds 99 I. Pensions - Detailed Statement of Net Assets 100 J. Pensions - Detailed Statement of Changes in Net Assets 101 K. Pensions - Actuarial Valuations 102 -42- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 Assessor also works to assure equity of assessments, and maintains records of building and demolitionpermits 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 Citywas incorporated in 1863. The Cityoperates under a Council-Managerform of government,is a home rule municipalityas definedby Illinoisstate law, and provides the followingservices 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 financialstatements present the City (the primary government) and its componentunit, an entity for which the City is considered to be financiallyaccountable. Although the component unit is legally a separate entity, it is governed by the same board; therefore, data from this unit is blended with data of the City. The financialstatements of the City of Evanston (City) have been prepared in conformitywith accountingprinciples 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-fundlevy, the Township also supports a number of communityaction 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. -43- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 statement of activities demonstrates the degree to which the direct expenses of a given functionor 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 functionor 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. 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 informationon all of the nonfiduciaryactivities 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 Township is included in the Reporting Entity due to its financial accountabilitybecause 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, 2008. This report is the most recent one available. -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B. Government-wide and Fund Financial Statements - Continued C. Fund Accounting 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. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-widefinancialstatements. Major individualgovernmentalfunds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are reported in the supplementary information. 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. Fiduciaryfunds 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 fundis used. Agencyfundsgenerallyare used to account for assets that the Cityholds 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." -45- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Taxes Fines Property Traffic fines Sales (Home Rule) Utility Intergovernmental Personal property Motor fuel tax allotments Grants Supplemental Security Income reimbursements Licenses Income taxes Sales taxes Use tax Franchise fees Charges for services Investment income Recycling program fees and sales 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 liabilityis 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. 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 availabilityperiod is used for revenue recognitionfor all other governmentalfund revenues. Expenditures generallyare 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 paymentis due or when amounts have been accumulatedin the debt service fund for payment to be made early in the following year. The followingrevenues 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, 2009 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 governmental funds: The City reports the following major proprietary funds: Additionally, the City reports the following fund types: 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. 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. 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 financialresources of the general government, except those required to be accounted for in another fund. Governmentalfunds report unearned revenue in connectionwith receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The Capital Improvements Fund accounts for the City's capital improvement program. The program includes improvement to public buildings, paving of City streets, improvement of recreational facilities and other improvements. -47- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – Continued Agency funds account for the cash received from property owners on capital improvement special assessments. Such amounts collected will be forwarded to bondholders. The City is not obligated in any manner for this debt and is only acting as agent for the property owners. The City's enterprise funds apply all applicable GASB pronouncements as well as relevant Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989, unless those pronouncements conflict or contradict GASB pronouncements, in which case, GASB prevails. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. 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 fundsand 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. 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. 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. -48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued E. Cash and Equivalents F. Investments G. Inventories H. Capital Assets 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. Investments consist of certificates of deposit, treasury obligations, government agency obligations, and insurance contracts with maturities greater than three months. Investments of the pension trust funds are carried at fair value. Investmentswith over one year to maturityare 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. 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-widefinancialstatements. Capital assets are definedby the governmentas equipment and vehicles with an initial, individual cost of more than $20,000, or infrastructure, buildings, or building improvements with an initial, individualcost 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. 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. Cash and equivalents represent cash on hand, cash deposited in interest-bearing and noninterest-bearing checking accounts, and investments in moneymarkets, certificatesof deposit, and treasuryobligations with maturities of three months or less at the date of acquisition, and cash deposited with the Illinois Funds. -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued H. Capital Assets - Continued Description Description Years Land improvements Buildings and improvements 10-50 Leasehold improvements Office equipment and furniture 5-15 Plant Machinery and equipment 5-15 Transmission and distribution Infrastructure 30-100 system Library collections 7 Sewer system and underground lines Parking meters I. Compensated Absences J. Long-Term Obligations Years 10-100 10-100 Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: 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, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 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-wideand proprietary fund financial statements. The General Fund has been used in prior years to liquidate the liability for compensated absences of governmental funds. 20-100 5-100 75-100 15 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 financingsources, while discounts on debt issuances are reported as other financinguses. Issuance costs, whether or not withheldfrom the actual debt proceeds received, are reported as debt service expenditures. -50- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K. Self-Insurance L. Property Taxes The property tax calendar for Cook County is as follows: Lien Date January 1 of Levy Year Levy Date December of Levy Year First Installment Due Date (one-half of prior bill) March 1 of Year following Levy Year Second Installment Due Date (balance of total bill) August or September of Year following Levy Year 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, 2008 and February 28, 2009 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 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. 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. 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. The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2007 property tax levy that will not be collected within 60 days of the Township's March 31, 2008 year-end. A 5% allowance for loss is reflected in the Township financial statements. -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued M. Fund Equity N. Interfund Transactions O. Use of Estimates P. Land Held for Resale In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legallyrestricted by outside parties for use for a specific purpose. Designationsof 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 contingentassets 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 fundare recorded as expenditures/expensesin the reimbursing fundand as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. In the Governmental Funds the cost of land held for resale is reported as an asset with increases and decreases for purchases and sales. -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. General obligation bonds payable $ 115,961,136 Special service district bonds payable 2,165,000 Bonds premium liability 5,037,459 Compensated absences payable 10,658,541 Capital lease 1,035,370 Pension contributions payable 17,309,920 Net adjustments to reduce fund balance – total governmental funds to arrive at net assets – governmental activities.$ 152,167,426 B. 1. Capital outlay $ 12,415,151 Depreciation expense (7,288,625) $5,126,526 Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities 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 $152,167,426 difference are as follows: 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 $5,126,526 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 -53- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 2. B. 2. Principal repayments: General obligation debt $ 23,320,000 SSD#5 Bond 295,000 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities $ 23,615,000 3. Capital Contribution $ (495,000) Compensated absences (908,543) Amortization income 628,588 Pension contributions 1,132,698 $357,743 4. 2008 Bond Series (A,C,D)$ (23,241,136) Capital lease (1,035,370) Bonds premium liability (804,606) $(25,081,112) 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 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS – 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 $23,615,000 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 $357,743 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 Another element of that reconciliation states that "Issuance of 2008 Bonds provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds." The details of this ($25,081,112) difference are as follows: 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, 2009 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 Library, Neighborhood Improvement, Affordable Housing, HOME, Community Development Loan, Employee Pension Contribution The Township prepares its annual appropriation ordinance, which is synonymouswith its budget, using the modified accrual basis of accounting. The appropriation ordinance was adopted June 11, 2007. 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. Budgets are legally adopted on a basis consistent with GAAP except that (1) property taxes are budgeted as revenue in the year they are levied, (2) debt service payments are budgeted upon tax levy for such purposes, (3) encumbrances are recorded as the equivalent of expenditures for budget purposes, and (4) interest earned on escrow accounts is budgeted as revenue in the year of debt repayment rather than when earned. For purposes of preparing the General Fund - Budget and Actual (BudgetaryBasis) Schedule of Revenues, Expenditures, and Changes in Fund Balance, GAAP revenues and expenditures have been adjusted to the budgetary basis. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following March 1. 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. -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued A. Budgetary Information - Continued Capital Projects Fund Actual Budget Excess Debt Service Fund $ 11,326,856 $ 10,644,328 $ 682,528 Howard Ridge Tax Increment District 78,975 16,000 62,975 B. DEFICIT FUND EQUITY The Washington National Tax Increment District CIP Fund had a deficit fund balance of $251,740 as of February 28, 2009. The City plans to use current resources and possible debt proceeds to pay for future liabilities. The followingfundshad an excess of actual budgetary expenditures over original and finalbudget for the year ended February 28, 2009: 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. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities under GAAP. Capital Improvements, Central Business Tax Increment District, Washington National Tax Increment District, Special Assessment The Insurance Fund, an internal service fund, had a net deficit of $1,607,345 as of February 28, 2009. The City plans to use current resources to pay for future liabilities. -56- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities B. Pooling of Cash and Investments 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. It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the followingorder: 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. Except for cash and investmentsin certain restricted and special accounts, the Citypools the cash of various fundsto maximize interest earnings. Interest income is allocated to the various funds based upon their respective participation. 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 LoanBank (FHLB),and Fannie Mae (FNMA); Bankers Acceptances as well as commercialpaper 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. -57- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments Equities $ - - 1,703,704 - $ 1,703,704 Equities $ - $ - Total Money Market Township Investment Maturities (In Years) $ - Less Than 1 Year 1 - 10 More Years $ 1,434,978 $ 1,434,978 Fifth Third Money Market 1 - 10 More YearsInvestment Type Fair Value Less Than 1 Year Governmental and Enterprise 1,703,704 Money Market / Liquid Assets Illinois Funds Mutual Funds $ 64,094,785 $ - 2,780,506 - Certificate of Deposits $ 20,012,214 41,302,065 - Total Governmental and Enterprise Investment Fund Investment Maturities (In Years) IMET Money Market 6,768,042 $ 20,012,214 $ 65,798,489 $ 1,434,978 8,819,858 $ - 2,780,506 Illinois Funds $ 1,434,978 $ 2,729,663 308,463 JP Morgan Money Market Investment Type $ 20,012,214 First Bank Money Market Fidelity Money Market 1,297,021 89,167 Fair Value Vanguard Money Market Total Township Investment As of February 28, 2009, the City has the followinginvestments and maturities. The fair value of the Illinois Funds is the same as the value of the pool shares. 41,302,065 $ - - - -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued Equities $ - 30,880,994 - - - - - 6,455,343 $ 37,336,337 6,023,862 1 - 10 More Years 14,524,831 - 905,560 897,945 Less Than 1 Year 12,844,843 1,568,988 575,814 32,449,982 U.S. Treasuries 277,728 13,750,403 15,100,645 Common Stock 6,455,343 - 1,643,839 7,656,762 Fannie Mae - 129,131 $ 92,338,596 $ 11,914,807 $ 43,087,452 1,278,033 1,366,111 $ 9,253,034 JP Morgan Money Market 4,733,935 Schwab Money Market 1,435,587 Total Fire and Police Investment 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 AAAm 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 InvestmentCompanyAct of 1940. Investmentsin 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. 6,028,588 4,726 Ginnie Mae 6,758,817 $ - Investment Maturities (In Years) Fair Value $ 9,253,034 $ 9,253,034 Money Market / Liquid Assets Fire and Police Pension JP Morgan Trust Money Market $ 444,000 Smith Barney Money Market 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. MB Bank Money Market IMET Money Market Convenience 1,232,348 Federal Home Loan Bank Federal Home Loan Mortgage Corp Mutual Funds Investment Type -59- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued D. Deposits City Township Fiduciary E. Reconciliation of Unrestricted and Restricted Cash and Investments 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: At March 31, 2008, the carrying amount of the Township's deposits was $234,792. The financial institutions' balances totaled $244,065. Deposits consist of deposits in interest-bearing and noninterest-bearing accounts. At February 28, 2009, the carrying amount of the Pension's deposits was $927,378 and $21,073 for Agency. The financial institutions' balances totaled $900,264 and $21,073, respectively. Concentration of Credit Risk.It is the policy of the City to diversifyits investment portfolio.Investments shall be diversified to eliminate the risk of loss resulting in overconcentration in a security, maturity, issuer, or class of securities. Deposits consist of deposits in interest-bearing and noninterest-bearing checking accounts. At February 28, 2009, the carrying amount of the City's deposits, including cash on hand of $16,311, was $25,564,935. The financial institutions' balances totaled $26,463,161. 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. 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 filed by the counterparty's trust. -60- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued E. Reconciliation of Unrestricted and Restricted Cash and Investments - Continued Unrestricted cash and equivalents $ 83,019,368 Unrestricted investments 1,703,704 Restricted cash and equivalents and investments 8,310,124 Total Cash and Investments – Primary Government 93,033,196 Fiduciary funds cash and equivalents 10,201,484 Fiduciary funds investments 83,085,561 Total Cash and Investments $ 186,320,241 Carrying amount of deposits – from Note 4 D $ 26,748,178 Investments – from Note 4 C 159,572,063 Total $ 186,320,241 -61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 5. RECEIVABLES A. Summary of Receivables Motor Vehicle Nonmajor General Parking and Other Fund Water Sewer System Funds Total Receivables: Property taxes $ 15,285,561 $ - $ - $ - $ 36,656,331 $ 51,941,892 Accounts - 1,763,056 2,386,268 - - 4,149,324 Notes - - - - 6,547,883 6,547,883 Special assessments - - - - 886,662 886,662 Accrued interest - 15,017 - - 298,856 313,873 Other 2,808,053 6,887 - 39,857 288,094 3,142,891 Gross receivables 18,093,614 1,784,960 2,386,268 39,857 44,677,826 66,982,525 Less: allowance for uncollectibles 289,913 - - - 905,401 1,195,314 Net total receivables $ 17,803,701 $ 1,784,960 $ 2,386,268 $ 39,857 $ 43,772,425 $ 65,787,211 Net total receivables $ 65,787,211 B. Notes Receivable – Special Revenue Funds Beginning Loans Loan End of of Year Made Repayments Year $ 6,047,185 $ 589,663 $275,614 $6,361,234 Receivables as of year - end for the government’sindividualmajor funds, nonmajor, internalservice funds and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: The City makes loans to City residents for the rehabilitationof single-familyand multi-familyhousing. Initialfundingfor these loans was from CommunityDevelopment 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) amortizingloans which are due in monthlyinstallmentsover 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 additionalrehabilitationloans. 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: Rates Interest 0% - 8% Out of the total Notes Receivable,$6,337,883 is not expected to be paid duringthe next year. Out of the total Special Assessmentreceivable, $416,662 is not expected to be paid during the next year. -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 6. CAPITAL ASSETS A. Capital Asset Activity Capital asset activity for the year ended February 28, 2009, was as follows: Governmental activities: Capital assets, not being depreciated: Land Right of way Property held for resale Artwork Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Office equipment and furniture Machinery and equipment Infrastructure Library collections Capitalized leases Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Office equipment and furniture Machinery and equipment Infrastructure Library collections Capitalized leases Total accumulated depreciation Total capital net assets being depreciated, net Governmental activities capital assets, net 40,000 - 40,000 - Beginning of Year 80,251,917 18,695,896 4,146,126 29,808,642 6,556,620$ 10,079,103 21,315,006 102,238,955 10,108,678 729,644 224,723,303 27,049,920 7,722,254 15,175,901 49,229,673 7,921,916 670,627 107,770,291 116,953,012 146,761,654$ -$ - 2,734,494 2,774,494 107,258 351,358 1,925,231 8,159,932 1,229,801 1,035,370 12,808,950 1,815,434 1,328,110 1,363,525 3,415,137 578,570 13,115 8,513,891 4,295,059 7,069,553$ DeletionsAdditions -$ - 1,357,852 1,357,852 - - 1,470,941 - - - 1,470,941 - - - 1,415,997 - 114,868,185 1,415,997 52,644,810 152,418,411$ 121,193,127 683,742 8,500,486 15,123,429 9,050,364 28,865,354 236,061,312 1,765,014 End of Year 31,225,284 5,522,768 21,769,296 10,430,461 80,359,175 18,695,896 6,556,620$ 410,000 11,338,479 110,398,887 - 410,000 - 1,412,796$ - 54,944 -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Deletions Business-type activities: Capital assets, not being depreciated: Land -$ Construction in progress 17,484,912 Artwork - Total capital assets, not being depreciated 17,484,912 Capital assets, being depreciated: Land improvements - Buildings and improvements - Leasehold improvements - Plant 31,723 Transmission and distribution system 2,983 Sewer system and underground lines - Equipment 105,633 Parking meters - Total capital assets being depreciated 140,339 Less accumulated depreciation for: Land improvements - Buildings and improvements - Leasehold improvements - Plant 10,121 Transmission and distribution system 2,983 Sewer system and underground lines - Equipment 99,337 Parking meters - Total accumulated depreciation 112,441 Total capital net assets being depreciated, net 27,898 Business-type activities capital assets, net 17,512,810$ 293,761 102,683 1,737,465 968,818 9,837,270 1,832,145 433,965 724,850 679,430 11,446,630 6,232,867 30,566,863 2,993,261 137,916 43,919 377,632,050 707,688 - 16,708,784 32,088,841 231,242,411 2,815,833 72,508,938 302,752 3,563,393 34,402,194 22,307,094 3,297,937$ 16,598,950 13,049,389 3,297,937$ 18,757,533 3,563,393 72,355,641 32,083,799 30,511,181 - 302,752 153,297 - 3,893,996 390,046 289,070 10,731,901 5,556,420 27,573,602 1,793,566 8,099,805 866,135 12,559,400 65,326 218,683,011 361,063,605 2,856,140 707,688 55,300,545 6,424,215 10,284,569 316,019,731 332,618,681$ 305,763,060 328,070,154$ 22,061,337$ 61,612,319 36,765 4,691 End of Year 11,776,768 11,776,768 -$ - 251,624 Additions 251,624 Beginning of Year -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 $ 1,337,304 Public safety 535,194 Public works 4,352,357 Recreation and cultural opportunities 2,289,036 Total depreciation expense – governmental activities $8,513,891 Business – type activities: Water $1,417,334 Sewer 3,033,718 Motor Vehicle Parking 1,973,163 Total depreciation expense – business – type activities $6,424,215 B. Construction Commitments $2,514,233 641,911 2,215,105 $5,371,249 The value of construction contracts signed, where the work has not yet been performed at February 28, 2009, is as follows: Capital Improvement Fund Water Fund Sewer Fund Total Construction Commitments -65- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 7. INTERFUNDS A. Interfund Accounts At February 28, 2009 interfund receivables and payables consist of the following: Governmental Funds General Fund Emergency Telephone System Economic Development Fleet Service Insurance Community Development Block Grant Central Business Tax Increment District Capital Improvements Motor Vehicle Parking System Water Sewer Neighborhood Improvement Fund Howard Hartrey Tax Increment Disctrict Special Assessment CP Fund Firefighters Pension Police Pension Howard Ridge Tax Increment Disctrict Southwest Tax Increment Disctrict Washington National Tax Increment District Total General Fund Capital Improvements General Total Capital Improvements Nonmajor Governmental Funds Howard Ridge Tax Increment District General Economic Development General Emergency Telephone System General HOME Community Development Block Grant Community Development Block Grant General HOME Community Development Loan Affordable Housing Total Community Development Block Grant 3,540 - 6,955 - - 104,046 49,593 16,008 18,389 - - 5 - 12,730 67,977 - - 133,437 67,977 - 34 17,265 23,275 29,760 12 - 22 5 - - 21,748 - 290,877 - - - 67,977 144 - - 43,518 Due from 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. Due to Other Funds - $ - $ 12,730 Funds Other Funds 6,955 - - 40,000 3,690 - - 21,748 16,008 1,434 - 16,008 - - - 10,000 -66- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Nonmajor Governmental Funds - Continued Community Development Loan Community Development Block Grant Neighborhood Improvement Fund General Howard Hartrey Tax increment District General Special Service District No. 4 Debt Service Fund Employer Pension Contribution Firefighters Pension Police Pension Total Employer Pension Contribution Town General Assistance General Assistance Town Affordable Housing Community Development Block Grant Southwest Tax Increment District Debt Service Fund General Total Southwest TIF Washington National Tax Increment District General Washington National Capital Projects Total Washington National TIF Debt Service Fund Special Service District No. 4 Southwest Tax Increment District Special Assessment CP Fund Sewer Motor Vehicle Parking System Total Debt Service Central Business Tax Increment District General Washington National Capital Projects Washington National Tax Increment District Special Assessment CP Fund General Debt Service Fund Total Special Assessment Total Nonmajor Governmental Funds Total Governmental Funds Due to 34 90,000 144 328,944 - 366,947 Other Funds $ - - 5,492,411 34 Funds Other Funds - 90,000 328,944 - 1,434$ - - 25,000 1,217,259 850,312 - - - 250,000 - 1,167,751 250,000 443,944 - 10,000 Due from - - - 5,358,974 808,897 3,690 3,690 250,000 328,944 - 25,000 22,051 - 40,000 3,378,398 1,594,706 1,783,692 - - - 22 22 90,000 - 12 - - 22,051 -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Enterprise Funds Water General Sewer General Debt Service Total Sewer Motor Vehicle Parking System General Debt Service Total Motor Vehicle Parking System Total Enterprise Funds Internal Service Funds Fleet Services General Insurance General Total Internal Service Funds Trust and Agency Funds Firefighters Pension Employer Pension Contribution General Firefighters Pension Police Pension Employer Pension Contribution General Police Pension Total Trust and Agency Funds Total Primary Government - 1,594,706 17,265 29,760 1,783,692 Other Funds Due to - 3,378,398 - 366,947 366,947 850,312 - - - 47,058 47,025 -$ 104,046$ 23,275 Due from 43,518 176,914 23,275 Funds Other Funds 1,217,259 - 3,540 49,593 - - $ 5,763,408 17,265 29,760 $ 5,763,408 1,594,706 - 1,783,692 49,593 - 850,312 -68- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers At February 28, 2009 transfers in / out consist of the following: Governmental Funds General Fund Affordable Housing Fund Central Business Tax Increment District Washington Natl. Tax Increment District Howard Hartrey Tax Increment District Southwest Tax Increment District Capital Improvement Fund Water Fund Howard Ridge Tax Increment District Motor Fuel Tax Fund Motor Vehicle Parking System Total General Fund Capital Improvements General Total Capital Improvement Nonmajor Governmental Funds Economic Development Maple Avenue Garage Affordable Housing Fund General Community Development Block Grant Community Development Loan Community Development Loan Community Development Block Grant - 2,778,600 141,600 Transfers 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. - - 300,000 - 24,000 57,700 - - - - Transfers 24,000$ Funds 325,000 772,500 5,415,600 - 57,700 777,500 - 650,000 -$ - - - - 300,000 - - Out 24,100 300,000 In 151,900 120,400 -69- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Nonmajor Governmental Funds - Continued Town General Assistance General Assistance Town General Obligation Debt Service Fund Special Assessment Total General Obligation Debt Central Business Tax Increment District General Sherman Garage Maple Avenue Garage Total Central Business Tax Increment District Southwest Tax Increment District General Howard Hartrey Tax Increment District General Howard Ridge Tax Increment District General Washington National Tax Increment District General Sherman Garage Total Washington National Special Assessment General Obligation Debt Total Special Assessment Motor Fuel Tax General Total Nonmajor Governmental Funds Total Governmental Funds 325,000 - - - 6,797,829 4,600,000 1,872,829 24,100 - 120,400 141,600 5,300,000 - 511,644 5,451,900 14,493,973 14,793,973 328,944 - 328,944 In 125,000$ Transfer OutFunds -$ Transfer - 125,000 - - - - - 5,927,244 - 328,944 - - 328,944 - 772,500 151,900 -70- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Enterprise Funds Water General Total Water Motor Vehicle Parking System General Fund Sherman Garage Maple Avenue Garage Nonmajor Enterprise Funds Sherman Garage Washington Natl. Tax Increment District Central Business Tax Increment District Motor Vehicle Parking System Maple Avenue Garage Central Business Tax Increment District Economic Development Motor Vehicle Parking System Total Maple Avenue Garage Total Nonmajor Enterprise Funds Total Enterprise Funds Total Primary Government C. Capital Contribution Capital contributions were made from governmental activities to the Motor Vehicle Parking System fund in the amount of $338,307, Sherman Garage fund in the amount of $13,936 and Sewer fund in the amount of $250,000. 7,172,829 4,901,718 1,872,829 650,000 - - - 4,901,718 4,901,718 - Out - 37,393,887 33,837,787 5,300,000 - 777,500 - 33,837,787 52,187,860$ 52,187,860$ 46,260,616 12,422,829 28,936,069 Transfer Funds In Transfer 777,500 - 2,778,600 -$ 2,778,600$ 28,936,069 28,936,069 - - 4,600,000 5,250,000 -71- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 8. Operating Leases The following are the oustanding lease agreements as of February 28, 2009: Number Monthly Leasing Co.Expiration of Copiers Payment Location GE Capital 10/01/09 5 $ 1,243 Police Dept. GE Capital 04/18/09 1 247 Police Dept. GE Capital 03/02/09 2 2,138 Civic Center GE Capital 03/02/09 3 2,346 Civic Center GE Capital 12/25/09 1 209 Civic Center GE Capital 11/19/09 1 367 Chandler Center Great America Leasing 04/25/10 6 2,541 Civic Center Minimum annual lease payments are as follows: Fiscal year ending 2010 $ 60,023 Fiscal year ending 2011 5,082 65,105$ The City of Evanston has various operating leases covering the rental of several digital office copiers from the GE Capital and Great America Leasing. The copiers are located in the Evanston Civic Center, Recreation Department and the Evanston Police and Fire Station. -72- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT A. Changes in Long-Term Debt Final Interest Maturity Balance Balance Due Within Rate Date 3/1/2008 Issued Refundings Payments 2/28/2009 One Year G.O. Debt Governmental Activities Series 1998 4.80%-4.875% 12/1/2018 $ 480,000 $ - $ - $ 480,000 $ - $ - Series 1999 4.25%-5.00% 12/1/2019 11,175,000 - 9,830,000 1,345,000 - - Series 2000C Variable Rate 12/1/2021 3,400,000 - - 3,400,000 - - Series 2000D Variable Rate 12/1/2021 3,900,000 - 3,900,000 - - - Series 2002C 5.00%-5.80% 1/1/2022 5,060,000 - - 705,000 4,355,000 695,000 Series 2003 2.00%-5.00% 1/1/2010 1,405,000 - - 825,000 580,000 580,000 Series 2003B 2.00%-5.25% 1/1/2023 3,560,000 - - 85,000 3,475,000 330,000 Series 2004 2.00%-5.00% 12/1/2023 12,940,000 - - 150,000 12,790,000 150,000 Series 2004B 2.00%-5.25% 12/1/2017 10,215,000 - - 1,340,000 8,875,000 1,415,000 Series 2005 3.25%-5.00% 12/1/2025 16,130,000 - - 105,000 16,025,000 585,000 Series 2006 3.85%-5.00% 12/1/2026 10,170,000 - - 120,000 10,050,000 120,000 Series 2006B 4.00%-4.25% 12/1/2023 14,430,000 - - - 14,430,000 - Series 2007 4.00%-5.00% 12/1/2016 23,175,000 - - 1,035,000 22,140,000 1,250,000 Series 2008A 3.00%-5.00% 12/1/2021 - 3,800,000 - - 3,800,000 195,000 Series 2008C 3.00%-5.00% 12/1/2019 - 9,965,580 - - 9,965,580 341,700 Series 2008D 3.25%-5.00% 12/1/2016 - 9,475,556 - - 9,475,556 1,206,701 Subtotal Governmental Activity G.O. Debt 116,040,000 23,241,136 13,730,000 9,590,000 115,961,136 6,868,401 G.O. Special Service District #5 Series 2002C 5.00%-5.80% 1/1/2016 2,460,000 - - 295,000 2,165,000 305,000 Subtotal G.A. Special Service District #5 G.O. Debt 2,460,000 - - 295,000 2,165,000 305,000 Capital lease - 1,035,370 - - 1,035,370 326,818 Bonds premium liability 4,861,441 804,606 - 628,588 5,037,459 - OPEB liability 302,471 350,684 - - 653,155 - Pension contributions 18,442,618 13,161,386 - 14,294,084 17,309,920 - Compensated absences payable- City 10,463,525 6,898,467 - 6,542,099 10,819,893 5,369,815 Claims payable 6,628,452 (300,255) - 969,597 5,358,600 2,395,337 Subtotal Other G.A. Liabilities 40,698,507 21,950,258 - 22,434,368 40,214,397 8,091,970 Total Governmental Activity Debt & Liabilities 159,198,507$ 45,191,394$ 13,730,000$ 32,319,368$ 158,340,533$ 15,265,371$ -73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued A. Changes in Long-Term Debt - Continued Final Interest Maturity Balance Balance Due Within Rate Date 3/1/2008 Issued Refundings Payments 2/28/2009 One Year G.O. Debt Business-type Activities Series 1999 Parking 4.25%-5.00%12/1/2019 1,055,000$ -$ 960,000$ 95,000$ -$ -$ Series 1999 Sewer 4.25%-5.00%12/1/2019 - - - - - - Series 1999 Sewer 4.25%-5.00%12/1/2019 10,260,000 - 8,795,000 1,465,000 - - Series 2000A Maple Avenue Garage Variable Rate 12/1/2021 4,000,000 - - 4,000,000 - - Series 2002A Sherman Garage Variable Rate 12/1/2018 27,700,000 - 27,700,000 - - - Series 2002B Sherman Garage Variable Rate 12/1/2008 4,500,000 - - 4,500,000 - - Series 2003 Parking System 2.00%-5.00%1/1/2010 1,200,000 - - 580,000 620,000 620,000 Series 2005 Sherman Garage 3.25%-5.00%12/1/2025 11,465,000 - - 840,000 10,625,000 870,000 Series 2007 Sewer 4.00%-5.00%12/1/2016 5,855,000 - - 840,000 5,015,000 890,000 Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 - 27,755,000 - - 27,755,000 11,320,000 Series 2008C Sewer 3.00%-5.00% 12/1/2018 - 2,429,420 - - 2,429,420 83,300 Series 2008D Parking 3.25%-5.00% 12/1/2016 - 873,307 - - 873,307 106,474 Series 2008D Sewer 3.25%-5.00% 12/1/2016 - 8,666,138 - - 8,666,138 1,576,825 Subtotal Business Activity G.O. Debt 66,035,000 39,723,865 37,455,000 12,320,000 55,983,865 15,466,599 Water Revenue Bond Series 1999 4.125-4.375%1/1/2014 1,640,000 - - 245,000 1,395,000 255,000 Water Revenue Bond Series 2002 2.00-3.75%1/1/2012 1,115,000 - - 265,000 850,000 270,000 Subtotal Water Revenue Bonds 2,755,000 - - 510,000 2,245,000 525,000 Subtotal IEPA Loans 2.535-3.59%Various 103,410,887 5,654,964 - 7,290,628 101,775,223 8,009,410 Unamortized bond Premium and discount (2,413) 17,756 - (34,846) 14,677 - Bonds premium liability - 1,288,451 - 146,156 1,142,295 - Compensated absences payable- City 639,352 65,757 - 45,412 659,697 428,708 OPEB Liability 28,172 1,993 - - 30,165 - Subtotal Other Business Activity Liabilities 665,111 1,373,957 - 156,722 1,846,834 428,708 Total Business Debt & Liabilities 172,865,998 46,752,786 37,455,000 20,277,350 161,850,922 24,429,717 Total Governmental & Business Debt & Liabilities 332,064,505$ 91,944,180$ 51,185,000$ 52,596,718$ 320,191,455$ 39,678,088$ -74- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 1,395,000 10/1/2002 1/1/2012 Various 2,355,000 850,000 Total Business type Activities- Water Revenue Bonds 2,245,000 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 160,196,249 101,775,223 Total Business type Activities- IEPA Loan Debt 101,775,223 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 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 and are payable through 2014. Annual payment and interest on the bonds are expected to require $616,556 of net revenues for Fiscal Year 2009-10. The total principal and interest remaining to be paid on the bonds is $2,496,545. Principal and interest paid for the current year and total customer net revenues were $620,913 and $5,818,287 respectively. Business type activities IEPA loans are payable from revenues derived from Sewer service fees. The City has pledged future revenues, net of operating expenses, to repay principal totaling $160,196,249 in IEPA loans issued in 1993 through 2008. Proceeds from the loans provided financing for the Long Term Sewer Improvement Program. The IEPA loans are payable solely from revenues and are payable through 2028. Annual payment and interest on the bonds are expected to require $10,730,592 of net revenues for the Fiscal year 2009-10. The total principal and interest remaining to be paid on the loans is $121,190,455. Principal and interest paid for the current year and total customer net revenues were $9,908,346 and $11,554,269 respectively. -75- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable In July 28, 2005, the City issued Series 2005 $29,270,000 in General Obligation bonds at a net interest cost of 3.893986%. The proceeds are being used to partially refund $6,350,000 of the 1998 bonds, pay a portion of the costs of Capital Improvement Program, finish constructing the Sherman Garage, and pay for additional Special Assessment Alley program. In May 13, 2004, the City issued Series 2004 $13,355,000 in General Obligation bonds at a net interest cost of 4.6291740%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program and Special Assessment Alley program. In July 27, 2004, the City issued Series 2004B $11,730,000 in General Obligation bonds at a net interest cost of 3.739542%. The proceeds are being used to partially refund $11,085,000 of the 1997 bonds. 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. In November 2001, the City entered into an interest rate swap agreement with Bank of America relating to the City's $19,000,000 General Obligation (G.O.) Variable Rate Demand Bonds, Series 2000A and the $10,400,000 Variable Rate Demand Bonds, Series 2000C with a fixed rate of 3.125% effective 12/1/01 through 11/30/05. In November 2002, the City entered into a rate cap agreement with JP Morgan Chase Bank relating to the City's $35,000,000 G.O. Variable Rate Demand Bonds, Series 2002 A and B, with a cap rate of 4.75% effective 12/1/02 through 11/30/2005. In March, 2003, the City issued $16,430,000 in General Obligation bonds with an average interest rate of 3.27% to advance refund $15,895,000 of outstanding 1993 Series bonds with an average interest rate of 4.04%. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $538,201. This difference, reported in the accompanying financial statements as a bond premium liability, is being charged to operations through the year 2011 using the straight-line method. The proceeds from the new bond issue were used to establish an escrow account and those monies were used to fully payoff the 1993 bonds on June 1, 2003. The City completed the advance refunding to reduce its total debt service payments over the next seven years by $1,149,266 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1,065,550. In May, 2003, the City issued Series 2003B $11,485,000 in General Obligation bonds at a net interest cost of 4.4900825%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program. -76- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable - Continued Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending Governmental Activities February 28 Principal Interest Principal Interest 2010 6,868,401 5,267,142 15,466,599 2,392,031 2011 6,975,518 5,027,211 5,134,483 1,852,922 2012 7,478,538 4,727,326 5,211,463 1,624,578 2013 7,950,448 4,425,478 5,919,551 1,400,628 2014 8,283,876 3,995,066 4,131,124 1,173,265 2015-2019 37,918,374 14,560,916 18,651,626 2,894,938 2020-2024 28,250,160 6,835,494 644,840 305,954 2025-2028 12,235,821 1,476,380 824,179 127,640 Total 115,961,136 46,315,013 55,983,865 11,771,956 In July 19, 2006, the City issued Series 2006 $10,290,000 in General Obligation bonds at a net interest cost of 4.793401%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program and Special Assessment Alley program Business-type Activities In December 27, 2006, the City issued Series 2006B $14,430,000 in General Obligation bonds at a net interest cost of 4.206030%. The proceeds are being used to partially refund $6,480,000 of the 2002C bonds and $7,270,000 of the 2003B bonds. This will result in net cash savings on $769,505 which translates to a net present value savings of $665,226. On May 24, 2007 the City issued Series 2007 $30,385,000 in General Obligation bonds at a net interest cost of 4.191092%. The proceeds are being used to current refund $11,970,000 of the City's Series 1997, advance refund $3,585,000 of the City's outstanding Series 1999 Bonds and provide $14,830,000 for capital improvement needs. This will result in net cash savings of $1,073,395 which translates to a net present value savings of $858,467. On May 7, 2008 the City issued Series 2008A/B/C in General Obligation bonds for a total of $43,950,000 at a net interest cost of 3.7415324%. The proceeds are being used to current refund and remarket to fixed rates $3,900,000 of 2000D variable bonds and $27,700,000 of 2002A variable bonds with the remainder of $12,395,000 to finance a portion of the current Capital Improvement plan of the City. On December 10, 2008, the City issued Series 2008D for a total of $19,015,000 at a net interest cost of 3.05%. The proceeds are being used to current refund the outstanding balance of Series 1999. This will result in a net cash savings of $1,081,086 which translates to a net present value savings of $940,979. -77- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued C. Special Service District Bonds Payable Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending February 28 Principal Interest 2010 305,000 128,313 2011 325,000 113,063 2012 335,000 96,813 2013 345,000 80,063 2014 385,000 61,950 2015-2016 470,000 63,001 Total 2,165,000 543,203 D. Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follows: Year Ending February 28 Principal Interest 2010 525,000 91,556 2011 550,000 71,269 2012 575,000 49,344 2013 290,000 26,032 2014 305,000 13,344 Total 2,245,000 251,545 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. -78- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued E. Notes Payable - Sewer IEPA Loans Notes payable – Sewer IEPA debt service requirements to maturity are as follows: Year Ending February 28 Principal Interest 2010 8,009,410 2,721,182 2011 8,242,107 2,488,393 2012 8,481,677 2,248,729 2013 8,605,653 2,001,982 2014 8,163,724 1,754,587 2015-2019 34,086,498 5,701,518 2020-2024 18,751,996 2,091,788 2025-2029 7,434,158 407,053 Total 101,775,223 19,415,232 F. Prior Years' General Obligation Bond Defeasances In 2005, the City defeased a portion of Series 1998 Corporate Purpose bonds, by placing a portion of the proceeds of Series 2005 in an irrevocable Escrow Account. 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. In 2007, the City defeased Series 1999 and a portion of Series 1997 by placing a portion of the proceeds of Series 2007 in an irrevocable Escrow Account. Business-type Activities In 1999, the City defeased a portion of Series 1994, Series 1995, and Series 1996 Corporate Purpose bonds, by placing a portion of the proceeds of Series 1999 Bonds in an irrevocable trust to provide for the advance refunding of the callable portion of the bonds. In 2004, the City defeased a portion of Series 1997 Corporate Purpose bonds, by placing a portion of the proceeds of Series 2004B in an irrevocable Escrow Account. During the fiscal year ended February 28, 2009, the City currently has 26 outstanding loans from the IEPA. The City will repay the loans solely from revenues derived from the sewer 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. -79- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued F. Prior Years' General Obligation Bond Defeasances - Continued Original Outstanding G.O. Series Amount Defeased Defeased Amounts 1996 9,765,000 9,765,000 1998 6,350,000 6,350,000 1999 (partial)3,585,000 3,585,000 2002C 6,480,000 6,480,000 2003B 7,270,000 7,270,000 Series 2002C 4,355,000 2003B 3,475,000 G. Prior Years' Special Service District #5 Bond Defeasances Special Service Original Amount Outstanding District #5 Defeased Defeased Amounts 1995 1,990,000 1,990,000 1996 1,620,000 1,620,000 The trust account assets and the liabilities for the defeased bonds are not included in the City’s financial statements. At February 28, 2009, the following remaining outstanding balances are considered defeased: The outstanding balances of Series 2002C and 2003B, not defeased at February 28, 2009, are recorded as a liability in the City’s financial statements. Those balances are as follows: In 2003, the City defeased a portion of Special Service District #5 Series 1995 and 1996 bonds by placing a portion of the proceeds of Series 2002C in an irrevocable escrow account. -80- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued H. Post Employment Benefits other than Pensions (Defined Benefit Plan) Annual required contribution $ 709,660 Interest on net OPEB obligation 14,880 Adjustment to annual required contribution (40,800) Annual OPEB cost 683,740 Contributions made (331,063) Increase in net OPEB obligation 352,677 Net OPEB obligation - Beginning of Year 330,643 Net OPEB obligation - End of Year $ 683,320 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 $369 for single coverage to $1,579 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 $369 for single coverage to $1,579 for family coverage. For fiscal year 2009, the City contributed $331,063 to the plan. 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. -81- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued H. 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 2/29/2008 $680,975 51.45% $ 330,643 2/28/2009 $683,740 48.42% $ 683,320 Actuarial accrued liability (AAL)$ 7,634,991 Actuarial value of plan assets - Unfunded Actuarial Accrued Liability (UAAL)$ 7,634,991 Funded ratio (actuarial value of plan assets/AAL)- Covered payroll (active plan members)$ 50,230,393 UAAL as a percentage of covered payroll 15.20% 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 as of March 1st, 2008, the most recent actuarial valuation date, was as follows: The City of Evanston's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2009 were as follows. -82- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 9. LONG-TERM DEBT - Continued H. Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued I. Capital Leases Fiscal year ending Amount 2010 $ 383,764 2011 383,764 2012 383,764 Total minimum lease payments 1,151,292 Less: amount representing interest (115,922) Present value of minimum lease payments $ 1,035,370 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 2009. At February 28, 2009 $1,035,370 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, 2009 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, 2008 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 9.50 percent initially, reduced by decrements to an ultimate rate of 4.50 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 remaining amortization period at March 1, 2008, was 29 years. -83- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 $42,249,545 Police Pension Fund Restriction for employee pension benefits 54,618,269 Total Fiduciary Funds $96,867,814 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 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. 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. -84- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 10. FUND EQUITY - Continued C. Reservations of Fund Equity General Fund Reserved for encumbrances $22,326 Reserved for Arts Council 32,094 Reserved for private elm trees 162,438 Reserved for parkway trees 223,216 Reserved for Butterfield sculpture 31,833 Reserved for scholarship contributions 32,753 Reserved for public library acquisitions 120,271 Reserved for recreation group activities 207,123 Reserved for youth initiative 42,150 Other reserves 400,358 Total General Fund 1,274,562 Special Revenue Funds Reserved for HUD approved Projects 410,000 Reserved for notes receivable 6,361,234 Total Special Revenue Funds 6,771,234 Debt Service Funds Reserved for debt service 24,985,425 Total Reserved Fund Equity - Governmental Funds $33,031,221 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: -85- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 1,072,522 Library 2,014,301 3,086,823 Legal Liabilities Township 78,782 Total Special Revenue Funds 3,165,605 Capital Projects Funds Specific capital projects Capital Improvements 13,190,483 Tax Increment Districts 3,219,840 Special Assessment 4,488,787 Total Capital Projects Funds 20,899,110 Unrestricted Fund Equity - Designated $29,491,628 -86- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 Central Business, Southwest, Washington National, and Howard Hartrey Tax Increment Districts; revenues from the Motor Vehicle Parking System Fund associated with the 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 effecton March 1, 1997 and continues in effectfor 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 ServiceDistrict 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 2008 was $522,854 which included a deficiencyin tax levy amount of $187,662. The ordinance also authorized the City to enter into an agreement with EVMARK, INC., an Illinois not-for-profit corporation to plan, implement, and manage the district. -87- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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, 2007 $ 2,801,201 $ 2,894,999 $ 5,696,200 New claims and/or estimate revisions 1,075,507 251,016 1,326,523 Claims payments (283,255) (111,016) (394,271) February 29, 2008 3,593,453 3,034,999 6,628,452 New claims and/or estimate revisions 1,235,778 (1,536,033) (300,255) Claims payments (564,894) (404,703) (969,597) February 28, 2009 $ 4,264,337 $ 1,094,263 $5,358,600 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 coverdamage to City facilities and contents and other losses including business interruption and loss of rents. The coverage is subject to a deductible of $75,000 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, specificexcess coveragein excess of $500,000 per occurrenceis purchased from a commercial insurance company. For general liability claims, the City retains risk of loss. No cases have exceeded the amount of insurance coverage for 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-reimbursementbasis. 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. -88- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 Intergovernment Cooperation Act, 5 ILLCS 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 ExecutiveCommittee of the Agencyconsists of seven persons electedby 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 developedby 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. 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 expenditureswhich may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. 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. -89- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 14. JOINT VENTURES – Continued A. Solid Waste Agency of Northern Cook County - Continued Summary of Financial Position as of April 30, 2008: Current assets $5,237,757 Restricted assets 952,279 Property, plant, and equipment 12,739,965 Debt issuance costs, net 87,680 Total assets $19,017,681 Current liabilities $4,769,267 Long-term debt, net of unamortized discount 6,832,203 Invested in capital assets, net of related debt 4,782,762 Restricted for debt service, net of accrued interest 927,596 Unrestricted net assets 1,705,853 Total liabilities and fund equity $19,017,681 Summary of Revenues and Expenses for the Year Ended April 30, 2008: Total revenues $16,037,930 Total expenses (17,349,294) Net (loss)$(1,311,364) 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. -90- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 14. JOINT VENTURES – Continued B. Evanston Housing Corporation Statement of Financial Position as of December 31, 2008: Cash and cash equivalents $833,072 Mortgage loans receivable 2,390,668 Total assets 3,223,740 Payables and accrued expenses 159,740 Notes payable 3,064,000 Total liabilities 3,223,740 Net Assets $- 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 City of Evanston advanced funds to the Corporation under two secured promissory notes, one for $500,000 and the other for $214,287. The notes are payable on or before November 30, 2009 and April 30, 2030, respectively. The notes bear no interest. However, the City is entitled to a certain net sales consideration upon the sale or exchange of the mortgaged property, as well as a prorated portion of the investment income earned on the funds not loaned to mortgagees. The 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 receivableand 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-profithousing mortgage corporationby 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 31,2008 are summarized as follows: -91- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 14. JOINT VENTURES – Continued B. Evanston Housing Corporation - Continued Statement of Activities for the Year Ended December 31, 2008: Total revenues $ 130,699 Total operating expenses (130,699) Excess of revenues over expenses $- NOTE 15. DEFERRED COMPENSATION PLAN Plan balance at February 28, 2009 $27,103,604 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 deferredcompensation is not available to the participants until termination, retirement, death, or an unforeseeable emergency occurs. The City provides the Corporation with officespace 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. -92- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 16. DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund A. Plan Description B. Funding Status and Progress The City’s total payrollfor the calendar year ended December31, 2008 was $62,065,285.Of this amount, $34,189,216 in payroll earnings were reported to and covered by the IMRF system. The Township’s total payroll for the year ended December 31, 2007 was $338,122. Of this amount, $338,122 in payroll earnings were reported to and covered by the IMRF plan. 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. The City maintains two separate single-employerretirement 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 employerpension 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. 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 for calendar year 2008 was 7.53% of payroll. The employercontributionrequirements are established and may be amended by the IMRF Board of Trustees. -93- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund - Continued C. Annual Pension Cost Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/08 $ 2,574,448 100%- 12/31/07 2,749,378 100%- 12/31/06 2,665,493 100%- Three-Year Trend Information for IMRF - City For December 31, 2008, the City’s annual pension cost of $2,574,448 was equal to the City’s required and actual contributions. The required contribution was determined as part of the December31, 2006 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.50% 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 11.6% 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 effectsof short-term volatilityin the market value of investments over a five-year period with a 20% corridor. The assumptions for 2008 pension cost were based on the 2002-2004 experience study. However the 2008 acturial valuation information is based on the 2005-2007 experience study. IMRF’s unfunded actuarial accrued liability is being amortized as a level percentage of projected payrollon a closed basis. The remaining amortization period at December 31, 2008 was 24 years. -94- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 12/31/07 $ 20,253 100%- 12/31/06 20,372 100%- 12/31/05 20,476 100%- Police and Firefighters' Pension Plans D. Plan Descriptions For December31, 2007, the Township’s annual pension cost of $20,253 was equal to the Township’s required and actual contributions. The required contribution was determined as part of the December 31, 2005 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.50% 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 15% corridor. The assumptions used for the 2007 actuarial valuation were based on the 2002-2004 experience study. The Police Pension Plan and Firefighters' Pension Plan are contributory,defined benefit public employeeretirementplans 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 employeeretirementsystem or another entity. The City's payroll for police and firefighteremployeescoveredby the plans for the year ended February 29, 2008 was $12,142,000 and $8,999,000 respectivelyand for February 28, 2009, it was $12,633,000 and $9,242,000, respectively. Three-Year Trend Information for IMRF - Township -95- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 16. DEFINED BENEFIT PENSION PLANS – Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions - Continued Participation in the plans at February 28, 2009 was: Police Firefighters' Retirees, disabled participants, and beneficiaries of deceased retirees currently receiving benefits 164 124 Active plan members 160 111 Total 324 235 Police Firefighters' Pension Fund Pension Fund Actuarial assumptions: Investment rate of return 7.25% 7.25% Projected salary increases 5.00% 5.00% Attributable to inflation 3.50% 3.50% Cost of Living Increases 3.00% 3.00% Any police officeror firefighterwho has creditable serviceof 20 years or more, has reached age 50, and is no longer in the service, is entitled to a yearlypension equal to 50% of the salary attached to the rank held for one year immediately prior to retirement 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 firefighterpension 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. -96- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 F. Contributions and Reserves A police officer or firefighter who retires or is separated from service after accumulating at least eight years for a police officer and 10 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 for one year immediately prior to retirement or separation in the case of a police officerand 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 committment 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. 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 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. -97- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued F. Contributions and Reserves – Continued Police Firefighters' Annual required contribution $ 7,081,620 $5,828,112 Interest on net pension obligation 804,821 532,269 Adjustment to annual required contribution (653,345) (432,091) Annual pension cost 7,233,096 5,928,290 Contributions made (7,838,745) (6,455,339) Increase (decrease) in net pension obligation (605,649) (527,049) Net pension obligation at March 1, 2008 11,100,974 7,341,644 Net pension obligation at March 1, 2009 $ 10,495,325 $6,814,595 For employercontributions, the City’s budget policy is to fund pension plans at the funding level recommendedannually by the actuary. The General Fund is used to liquidate the net pension obligation. 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, 2009 are as follows: The differencebetween 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. -98- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 NOTE 16. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued G. Concentration of Investments H. Three-Year Trend Information – Pension Trust Funds Fiscal Annual Pension Percentage of Net Pension Year Ended Cost (APC)APC Contributed Obligation Police 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 2/28/06 4,388,343 106.25 8,237,212 2/28/05 4,157,307 73.87 8,265,927 2/29/04 4,361,218 107.87 7,330,143 Firefighters'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 2/28/05 3,364,452 80.67 4,923,431 2/29/04 3,091,174 106.37 4,052,686 The required supplementary information immediately follows the Notes to the Financial Statements. The Firefighters' Pension Trust Fund had no significant investments (other than U.S. Governmentand U.S. Government- guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. The Police Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government- guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. -99- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 5,306,875$ 4,873,536$ 10,180,411$ Receivables Accrued interest 33,129 247,265 280,394 Due from other funds 1,577,441 1,753,932 3,331,373 Total Receivables 1,610,570 2,001,197 3,611,767 Investments, at fair value U.S. Government obligations 9,094,220 35,086,017 44,180,237 Common stock 6,455,343 - 6,455,343 Mutual funds 19,789,383 12,660,598 32,449,981 Total Investments 35,338,946 47,746,615 83,085,561 Total Assets 42,256,391 54,621,348 96,877,739 Liabilities Vouchers payable 6,846 3,079 9,925 Total Liabilities 6,846 3,079 9,925 Net assets held in trust for pension benefits 42,249,545$ 54,618,269$ 96,867,814$ -100- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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 6,455,339$ 7,838,745$ 14,294,084$ Plan members 782,928 1,125,813 1,908,741 Total Contributions 7,238,267 8,964,558 16,202,825 Investment income Net appreciation (depreciation) in fair value of investments (6,586,337) (11,872,451) (18,458,788) Interest 1,634,295 2,361,539 3,995,834 Total investment income (4,952,042) (9,510,912) (14,462,954) Less investment expense 185,432 106,691 292,123 Net investment income (5,137,474) (9,617,603) (14,755,077) Total Additions 2,100,793 (653,045) 1,447,748 Deductions Benefits 5,144,538 7,222,424 12,366,962 Refunds of contributions - 5,657 5,657 Administrative expense 50,475 25,938 76,413 Total Deductions 5,195,013 7,254,019 12,449,032 Net increase (3,094,220) (7,907,064) (11,001,284) Net assets held in trust for pension benefits Beginning of year 45,343,765 62,525,333 107,869,098 End of year 42,249,545$ 54,618,269$ 96,867,814$ -101- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ending February 28, 2009 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, 2009 March 1, 2009 Actuarial cost method Entry-Age Normal Entry-Age Normal Amortization method Level Percentage of Level Percentage of payroll, closed period payroll, closed period Remaining amortization period 24 Years , 4 months 24 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: -102- REQUIRED SUPPLEMENTARY INFORMATION -103- CITY OF EVANSTON, ILLINOIS Firefighters' Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund Schedules of Funding Progress Required Supplementary Information Actuarial Percentage Actuarial Value of Funded Covered of Covered Valuation Assets Ratio Payroll Payroll Date (a)(a/b) ( c ) ((b-a)/c) Firefighters' Pension 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% 3/1/2004 37,420,932 75,342,794 37,921,862 49.67% 7,376,000 514.13% Police Pension 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% 3/1/2004 54,469,873 101,824,016 47,354,143 53.49% 10,217,000 463.48% Illinois Municipal Retirement Fund (City) 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 - 12/31/2006 87,758,900 82,928,874 (4,830,026) 105.82% 32,625,369 - 12/31/2005 82,368,849 79,384,403 (2,984,446) 103.76% 31,403,514 - 12/31/2004 77,206,655 74,129,924 (3,076,731) 104.15% 29,568,219 - 12/31/2003 76,984,367 70,647,540 (6,336,827) 108.97% 29,240,514 - Illinois Municipal Retirement Fund (Township) 12/31/2007 612,352$ 360,059$ (252,293)$ 170.07% 338,122$ - 12/31/2006 514,875 321,366 (193,509) 160.21% 344,707 - 12/31/2005 413,112 253,244 (159,868) 163.13% 314,044 - 12/31/2004 612,303 450,398 (161,905) 135.95% 325,805 - 12/31/2003 585,069 429,243 (155,826) 136.30% 345,639 - 12/31/2002 810,301 512,878 (297,423) 157.99% 338,707 - Post Employment Benefits other than Pension 3/1/2009 - 7,634,991$ 7,634,991$ - 50,230,393 15.20% 3/1/2008 - 7,254,074 7,254,074 - 48,531,780 14.95% Note: See notes to Required Supplementary Information and Auditors' Report. February 28, 2009 Actuarial Accrued Liability (AAL) Projected Unit Credit (b) Unfunded AAL (UAAL) (b-a) -104- CITY OF EVANSTON, ILLINOIS Firefighters and Police Pension Funds Schedules of Employer Contribution Required Supplementary Information February 28, 2009 Annual Annual Tax Levy Required City's Percentage Required City's Percentage Year Contribution Contribution Contributed Contribution Contribution Contributed 2008 5,486,699$ N/A N/A 6,659,960$ N/A N/A 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 Auditors' Report. Firefighters' Pension Fund Police Pension Fund -105- 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, 2009 Original & Final Budget Actual Variance Revenues Taxes 41,812,900$ 40,274,141$ (1,538,759) Licenses and permits 8,683,800 8,820,280 136,480 Intergovernmental 16,533,300 16,391,753 (141,547) Charges for services 8,427,100 8,399,042 (28,058) Fines 4,341,400 4,442,282 100,882 Investment income 550,000 240,988 (309,012) Miscellaneous 8,304,500 3,980,418 (4,324,082) Total Revenues 88,653,000 82,548,904 (6,104,096) Expenditures General management and support 14,264,881 12,703,911 1,560,970 Public safety 37,230,000 38,453,815 (1,223,815) Public works 16,365,400 16,317,586 47,814 Health and human resource development 4,074,200 3,745,632 328,568 Recreation and cultural opportunities 18,854,000 18,450,868 403,132 Housing and economic development 3,584,200 3,301,478 282,722 Total Expenditures 94,372,681 92,973,290 1,399,391 (Deficiency) of Revenues (under) Expenditures (5,719,681) (10,424,386) (4,704,705) Other Financing Sources (Uses) Operating transfers in (out) Motor Fuel Tax Fund 772,500 772,500 - Housing Fund 24,000 24,000 - Downtown TIF Debt Service Fund 325,000 325,000 - Washington National TIF Debt Service Fund 151,900 151,900 - Howard Hartrey Debt Service 141,600 141,600 - Southwest TIF I Debt Service Fund 24,100 24,100 - Howard Ridge TIF 120,400 120,400 - Capital Improvement Fund 300,000 300,000 - Parking Fund 777,500 777,500 - Water Fund 2,778,600 2,778,600 - Issuance of debt 304,081 304,081 - 5,719,681 5,719,681 - Excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses -$ (4,704,705) (4,704,705) Fund Balance Beginning of year 34,614,837 End of year 29,910,132$ Note: See notes to Required Supplementary Information and Auditors' Report. -106- 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 $ 82,447,766 Increase (decrease) due to budgeting property taxes as revenue in the year of levy 101,138 Budgetary Basis Revenues $ 82,548,904 Expenditures GAAP basis expenditures as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 93,088,146 Increase (decrease) due to Encumbrances - March 1, 2008 (137,182) Encumbrances - February 28, 2009 22,326 Budgetary Basis Expenditures $ 92,973,290 Note: See Auditors' Report. The actuarial assumptions used to determine the actuarial accrued liability for 2009 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, 2009 on the GAAP basis to the budgetary basis are presented below: -107- GOVERNMENTAL FUND TYPES -108- 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. Continued 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. 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. 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. 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. Library - 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. -109- 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. Continued 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. 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. General Assistance - to account for the assistance given to persons and/or families to meet their basic living expenses. Debt Service Funds 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. Central Business Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Employer Pension Contribution - 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. Special Revenue Funds - Continued -110- 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. Central Business Tax Increment District - to account for the purchase of land and other related costs of the research park. Financing is provided from general obligation bond and note proceeds. Washington National Tax Increment District - to account for the costs of redevelopment of this special taxing district. Financing is provided from general obligation bond and note proceeds. -111- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet Special Revenue Emergency Motor Economic Telephone Neighborhood Fuel Tax Development System Library Improvement Cash and equivalents 1,092,197$ 1,949,770$ 2,201,734$ 308,463$ 51,391$ Investments - - - 1,703,704 - Receivables Property taxes (net of allowance) Current year levy - - - - - Notes - - - - - Allowance - - - - - Special assessments - - - - - Accrued interest - - - 2,134 - Other - 21,599 130,505 - - Building held for resale - - - - - Due from other governments 173,138 - - - - Due from other funds - 21,748 - - 40,000 Total Assets 1,265,335$ 1,993,117$ 2,332,239$ 2,014,301$ 91,391$ Liabilities Vouchers payable 192,813$ 16,008$ 151,268$ -$ -$ Other - - - - - Due to other governments - - - - - Due to other funds - - 12,731 - - Deferred revenues - - - - - Total Liabilities 192,813 16,008 163,999 - - Fund Balances Reserved for notes receivable - - - - - Reseved for debt service - - - - - Reserved for HUD Approved Projects - - - - - Unreserved Designated 1,072,522 - - 2,014,301 - Undesignated - 1,977,109 2,168,240 - 91,391 Total Fund Balances 1,072,522 1,977,109 2,168,240 2,014,301 91,391 Total Liabilities and Fund Balances 1,265,335$ 1,993,117$ 2,332,239$ 2,014,301$ 91,391$ Liabilities and Fund Balances Assets February 28, 2009 -112- Special Revenue Special Community Community Service Employer Total Affordable Development Development District Pension City Housing HOME Block Grant Loan No. 4 Contribution Funds 648,302$ 73,711$ 26,998$ 367,875$ 21,728$ -$ 6,742,169$ - - - - - - 1,703,704 - - - - 313,506 10,150,523 10,464,029 1,364,371 3,324,696 24,799 1,737,368 - - 6,451,234 - - (12,000) (78,000) - - (90,000) - - - - - - - - - - - - - 2,134 89,133 - - - - - 241,237 - - 410,000 - - - 410,000 - - 31,667 - - - 204,805 10,000 - 16,008 1,434 - - 89,190 2,111,806$ 3,398,407$ 497,472$ 2,028,677$ 335,234$ 10,150,523$ 26,218,502$ -$ 2,648$ 56,285$ 15,522$ -$ -$ 434,544$ - - - 3,257 - - 3,257 - 5,300 - 1,382 - - 6,682 - 16,008 18,388 - 25,000 3,378,398 3,450,525 - - - - 122,220 6,772,125 6,894,345 - 23,956 74,673 20,161 147,220 10,150,523 10,789,353 1,364,371 3,324,696 12,799 1,659,368 - - 6,361,234 - - - - - - - - - 410,000 - - - 410,000 - - - - - - 3,086,823 747,435 49,755 - 349,148 188,014 - 5,571,092 2,111,806 3,374,451 422,799 2,008,516 188,014 - 15,429,149 2,111,806$ 3,398,407$ 497,472$ 2,028,677$ 335,234$ 10,150,523$ 26,218,502$ Continued -113- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Total Total General Township Special Town Assistance Funds Revenue Cash and equivalents 661,120$ 1,008,650$ 1,669,770$ 8,411,939$ Investments - - - 1,703,704 Receivables Property taxes (net of allowance) Current year levy 162,788 589,162 751,950 11,215,979 Notes - - - 6,451,234 Allowance - - - (90,000) Special assessments - - - - Accrued interest - - - 2,134 Other 12,401 919 13,320 254,557 Building held for resale - - - 410,000 Due from other governments - - - 204,805 Due from other funds 22,051 - 22,051 111,241 Total Assets 858,360$ 1,598,731$ 2,457,091$ 28,675,593$ Liabilities Vouchers payable 8,101$ 50,695$ 58,796$ 493,340$ Other - - - 3,257 Due to other governments - - - 6,682 Due to other funds - 22,051 22,051 3,472,576 Deferred revenues 142,113 536,177 678,290 7,572,635 Total Liabilities 150,214 608,923 759,137 11,548,490 Fund Balances Reserved for notes receivable - - - 6,361,234 Reseved for debt service - - - - Reserved for HUD Approved Projects - - - 410,000 Unreserved Designated 78,782 - 78,782 3,165,605 Undesignated 629,364 989,808 1,619,172 7,190,264 Total Fund Balances 708,146 989,808 1,697,954 17,127,103 Total Liabilities and Fund Balances 858,360$ 1,598,731$ 2,457,091$ 28,675,593$ Liabilities and Fund Balances Assets Special Revenue 2/28/2009 and 03/31/08 for City and Township respectively -114- Central Howard Washington Howard West Special Business Southwest Hartrey National Ridge Evanston General Service Tax Tax Tax Tax Tax Tax Obligation District Increment Increment Increment Increment Increment Increment Debt No.5 District District District District District District Total 3,101,180$ 43,493$ 2,837,807$ 5,219$ 3,954,195$ 4,738,740$ 222,531$ 382,791$ 15,285,956$ - - - - - - - - - 9,289,920 422,652 8,253,097 636,736 1,230,915 4,414,288 162,656 311,336 24,721,600 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 443,944 - 22 - 250,000 - - 693,966 12,835,044$ 466,145$ 11,090,904$ 641,977$ 5,185,110$ 9,403,028$ 385,187$ 694,127$ 40,701,522$ -$ -$ -$ -$ -$ -$ 78,975$ -$ 78,975$ - - - - - - - - - - - - - - - - - - 1,217,259 - - 90,000 12 34 5 - 1,307,310 5,517,114 234,774 4,392,041 327,820 604,860 2,990,098 93,463 169,642 14,329,812 6,734,373 234,774 4,392,041 417,820 604,872 2,990,132 172,443 169,642 15,716,097 - - - - - - - - - 6,100,671 231,371 6,698,863 224,157 4,580,238 6,412,896 212,744 524,485 24,985,425 - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,100,671 231,371 6,698,863 224,157 4,580,238 6,412,896 212,744 524,485 24,985,425 12,835,044$ 466,145$ 11,090,904$ 641,977$ 5,185,110$ 9,403,028$ 385,187$ 694,127$ 40,701,522$ Debt Service Continued -115- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Central Washington Business National Total Tax Tax Nonmajor Increment Increment Special Governmental District District Assessment Total Funds Cash and equivalents 3,469,684$ 2,857$ 4,814,899$ 8,287,440$ 31,985,335$ Investments - - - - 1,703,704 Receivables Property taxes (net of allowance) Current year levy - - - - 35,937,579 Notes 96,649 - - 96,649 6,547,883 Allowance (96,649) - - (96,649) (186,649) Special assessments - - 886,662 886,662 886,662 Accrued interest 16,328 - - 16,328 18,462 Other - - - - 254,557 Building held for resale - - - - 410,000 Due from other governments - - - - 204,805 Due from other funds - - 3,690 3,690 808,897 Total Assets 3,486,012$ 2,857$ 5,705,251$ 9,194,120$ 78,571,235$ Liabilities Vouchers payable 14,288$ 4,597$ 859$ 19,744$ 592,059$ Other - - - - 3,257 Due to other governments - - - - 6,682 Due to other funds 144 250,000 328,944 579,088 5,358,974 Deferred revenues - - 886,661 886,661 22,789,108 Total Liabilities 14,432 254,597 1,216,464 1,485,493 28,750,080 Fund Balances Reserved for notes receivable - - - - 6,361,234 Reseved for debt service - - - - 24,985,425 Reserved for HUD Approved Projects - - - - 410,000 Unreserved Designated 3,471,580 (251,740) 4,488,787 7,708,627 10,874,232 Undesignated - - - - 7,190,264 Total Fund Balances 3,471,580 (251,740) 4,488,787 7,708,627 49,821,155 Total Liabilities and Fund Balances 3,486,012$ 2,857$ 5,705,251$ 9,194,120$ 78,571,235$ Liabilities and Fund Balances Capital Projects Assets February 28, 2009 Concluded -116- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances Emergency Motor Economic Telephone Neighborhood Fuel Tax Development System Library Improvement Revenues Taxes -$ 1,886,215$ 1,150,724$ -$ 40,000$ Special assessments - - - - - Intergovernmental 1,956,273 - - - - Investment income 20,063 21,244 30,849 (749,988) - SSI reimbursement - - - - - Emergency assistance reimbursement - - - - - Miscellaneous - 30,000 575 7,000 - Total Revenues 1,976,336 1,937,459 1,182,148 (742,988) 40,000 Expenditures Current General management and support - - - - - Public safety - - 1,474,090 - - Public works 1,645,299 - - - - Health and human resource development - - - - - Recreation and cultural opportunities - - - - - Housing and economic development - 808,583 - - 71,107 Debt service Principal - - - - - Interest - - - - - Fiscal agent fees - - - - - Capital outlay - - - - - Total Expenditures 1,645,299 808,583 1,474,090 - 71,107 Excess (Deficiency) of Revenues Over (Under) Expenditures 331,037 1,128,876 (291,942) (742,988) (31,107) Other Financing Sources (Uses) Bonds issued - - - - - Escrow funding - - - - - Premiums and discount - - - - - Transfers in (out) General (772,500) - - - - Community Development Block Grant - - - - - Community Development Loan - - - - - Town - - - - - General Assistance - - - - - General Obligation Debt Service - - - - - Special Assesstment Capital Project - - - - - Maple Avenue Garage - (650,000) - - - Sherman Garage - - - - - Total Other Financing Sources (Uses)(772,500) (650,000) - - - Net Change in Fund Balances (441,463) 478,876 (291,942) (742,988) (31,107) Fund Balances -Beginning of Year 1,513,985 1,498,233 2,460,182 2,757,289 122,498 Fund Balances - End of Year 1,072,522$ 1,977,109$ 2,168,240$ 2,014,301$ 91,391$ Special Revenue Year ended February 28, 2009 -117- Special Community Community Service Employer Total Affordable Development Development District Pension City Housing HOME Block Grant Loan No. 4 Contribution Funds -$ -$ -$ -$ 478,197$ 9,711,598$ 13,266,734$ - - - - - - - - 527,825 1,940,131 - - - 4,424,229 12,634 13,122 - 4,927 296 - (646,853) - - - - - - - - - - - - - - 157,265 - 13,114 - - - 207,954 169,899 540,947 1,953,245 4,927 478,493 9,711,598 17,252,064 - - - - - - - - - - - - 9,711,598 11,185,688 - - - - - - 1,645,299 - - - - - - - - - - - - - - 44,395 255,746 2,010,945 27,213 444,000 - 3,661,989 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 44,395 255,746 2,010,945 27,213 444,000 9,711,598 16,492,976 125,504 285,201 (57,700) (22,286) 34,493 - 759,088 - - - - - - - - - - - - - - - - - - - - - (24,000) - - - - - (796,500) - - - (57,700) - - (57,700) - - 57,700 - - - 57,700 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (650,000) - - - - - - - (24,000) - 57,700 (57,700) - - (1,446,500) 101,504 285,201 - (79,986) 34,493 - (687,412) 2,010,302 3,089,250 422,799 2,088,502 153,521 - 16,116,561 2,111,806$ 3,374,451$ 422,799$ 2,008,516$ 188,014$ -$ 15,429,149$ Special Revenue Continued -118- 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 367,567$ 956,854$ 1,324,421$ 14,591,155$ Special assessments - - - - Intergovernmental 83,872 - 83,872 4,508,101 Investment income 17,949 18,883 36,832 (610,021) SSI reimbursement - 29,163 29,163 29,163 Emergency assistance reimbursement - 45,239 45,239 45,239 Miscellaneous - - - 207,954 Total Revenues 469,388 1,050,139 1,519,527 18,771,591 Expenditures Current General management and support 88,392 994,167 1,082,559 1,082,559 Public safety - - - 11,185,688 Public works - - - 1,645,299 Health and human resource development - - - - Recreation and cultural opportunities - - - - Housing and economic development - - - 3,661,989 Debt service Principal - - - - Interest - - - - Fiscal agent fees - - - - Capital outlay - - - - Total Expenditures 88,392 994,167 1,082,559 17,575,535 Excess (Deficiency) of Revenues Over (Under) Expenditures 380,996 55,972 436,968 1,196,056 Other Financing Sources (Uses) Bonds issued - - - - Escrow funding - - - - Premiums and discount - - - - Transfers in (out) General - - - (796,500) Community Development Block Grant - - - (57,700) Community Development Loan - - - 57,700 Town - 125,000 125,000 125,000 General Assistance (125,000) - (125,000) (125,000) General Obligation Debt Service - - - - Special Assesstment Capital Project - - - - Maple Avenue Garage - - - (650,000) Sherman Garage - - - - Total Other Financing Sources (Uses)(125,000) 125,000 - (1,446,500) Net Change in Fund Balances 255,996 180,972 436,968 (250,444) Fund Balances -Beginning of Year 452,150 808,836 1,260,986 17,377,547 Fund Balances - End of Year 708,146$ 989,808$ 1,697,954$ 17,127,103$ Year Ended February 28, 2009 and March 31, 2008 for City and Township respectively Special Revenue -119- Central Howard Washington Howard West Special Business Southwest Hartrey National Ridge Evanston General Service Tax Tax Tax Tax Tax Tax Obligation District Increment Increment Increment Increment Increment Increment Debt No.5 District District District District District District Total 9,225,591$ 438,563$ 11,915,288$ 673,499$ 1,221,091$ 5,101,110$ 200,426$ 495,268$ 29,270,836$ - - - - - - - - - - - - - - - - - - 63,320 354 42,268 2,509 56,005 72,812 2,462 108 239,838 - - - - - - - - - - - - - - - - - - - - - - - - - - - 9,288,911 438,917 11,957,556 676,008 1,277,096 5,173,922 202,888 495,376 29,510,674 336,375 - - - 285 78,975 - 415,635 - - - - - - - - - - - - - - - - - - - - - 800,000 - - - - 800,000 - - - - - - - - - - - - - - - - - - 5,430,000 295,000 3,400,000 65,000 475,000 220,000 - - 9,885,000 4,546,652 143,063 63,640 4,631 223,320 160,878 - - 5,142,184 20,524 - 7,126 - - - - - 27,650 - - - - - - - - - 10,333,551 438,063 3,470,766 869,631 698,320 381,163 78,975 - 16,270,469 (1,044,640) 854 8,486,790 (193,623) 578,776 4,792,759 123,913 495,376 13,240,205 13,160,000 - - - - - - - 13,160,000 (13,280,204) - - - - - - - (13,280,204) 790,004 - - - - - - - 790,004 - - (325,000) (24,100) (141,600) (151,900) (120,400) - (763,000) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 328,944 - - - - - - - 328,944 - - (4,600,000) - - - - - (4,600,000) - - (1,872,829) - - (5,300,000) - - (7,172,829) 998,744 - (6,797,829) (24,100) (141,600) (5,451,900) (120,400) - (11,537,085) (45,896) 854 1,688,961 (217,723) 437,176 (659,141) 3,513 495,376 1,703,120 6,146,567 230,517 5,009,902 441,880 4,143,062 7,072,037 209,231 29,109 23,282,305 6,100,671$ 231,371$ 6,698,863$ 224,157$ 4,580,238$ 6,412,896$ 212,744$ 524,485$ 24,985,425$ Debt Service Continued -120- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Statements of Revenues, Expenditures, and Changes in Fund Balances - Continued Central Washington Business National Total Tax Tax Nonmajor Increment Increment Special Governmental District District Assessment Total Funds Revenues Taxes -$ -$ -$ -$ 43,861,991$ Special assessments - - 516,168 516,168 516,168 Intergovernmental - - - - 4,508,101 Investment income 46,203 161 61,040 107,404 (262,779) SSI reimbursement - - - - 29,163 Emergency assistance reimbursement - - - - 45,239 Miscellaneous - - - - 207,954 Total Revenues 46,203 161 577,208 623,572 48,905,837 Expenditures Current General management and support 193 - 3,393 3,586 1,501,780 Public safety - - - - 11,185,688 Public works - 57,314 - 57,314 1,702,613 Health and human resource development - - - - 800,000 Recreation and cultural opportunities 90,452 - - 90,452 90,452 Housing and economic development - - - - 3,661,989 Debt service Principal - - - - 9,885,000 Interest - - - - 5,142,184 Fiscal agent fees - - - - 27,650 Capital outlay 384,925 - - 384,925 384,925 Total Expenditures 475,570 57,314 3,393 536,277 34,382,281 Excess (Deficiency) of Revenues Over (Under) Expenditures (429,367) (57,153) 573,815 87,295 14,523,556 Other Financing Sources (Uses) Bonds issued - - 500,000 500,000 13,660,000 Escrow funding - - - - (13,280,204) Premiums and discount - - 14,602 14,602 804,606 Transfers in (out) General - - - - (1,559,500) Community Development Block Grant - - - - (57,700) Community Development Loan - - - - 57,700 Town - - - - 125,000 General Assistance - - - - (125,000) General Obligation Debt Service - - (328,944) (328,944) (328,944) Special Assesstment Capital Project - - - - 328,944 Maple Avenue Garage - - - - (5,250,000) Sherman Garage - - - - (7,172,829) Total Other Financing Sources (Uses)- - 185,658 185,658 (12,797,927) Net Change in Fund Balances (429,367) (57,153) 759,473 272,953 1,725,629 Fund Balances -Beginning of Year 3,900,947 (194,587) 3,729,314 7,435,674 48,095,526 Fund Balances - End of Year 3,471,580$ (251,740)$ 4,488,787$ 7,708,627$ 49,821,155$ Year ended February 28, 2009 Capital Projects Concluded -121- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Taxes Property Current year levy 16,305,500$ 16,250,329$ (55,171)$ Prior year levy 200,000 215,057 15,057 Total Property Taxes 16,505,500 16,465,386 (40,114) Personal Property Replacement Tax 975,500 788,614 (186,886) Other Taxes State Use Tax 956,100 1,068,907 112,807 Sales Tax - Home Rule 6,070,500 5,572,880 (497,620) Auto Rental Tax 35,000 38,826 3,826 Athletic Contest Tax 550,000 722,693 172,693 Utility Tax 8,581,800 8,802,973 221,173 Cigarette Tax 405,000 374,153 (30,847) Evanston Motor Fuel Tax 401,000 521,766 120,766 Liquor Tax 1,927,000 1,947,785 20,785 Parking Tax 1,700,000 1,905,988 205,988 Real Estate TransferTax 3,700,000 2,064,170 (1,635,830) Amusement Tax 5,500 - (5,500) Total Other Taxes 24,331,900 23,020,141 (1,311,759) Total Taxes 41,812,900 40,274,141 (1,538,759) Year ended February 28, 2009 Continued -122- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Licenses and Permits Vehicle Licenses 2,695,000$ 2,598,005$ (96,995)$ Business Licenses 170,500 76,941 (93,559) Pet Licenses 44,000 22,555 (21,445) Bicycle Licenses - 85 85 Contractor Licenses 85,000 78,437 (6,563) Rooming House Licenses 193,200 186,107 (7,093) Liquor Licenses 345,100 328,529 (16,571) One Day Liquor Licenses - 2,075 2,075 Farmer's Market Licenses 26,400 28,670 2,270 Rental building register 146,000 56,896 (89,104) Other Licenses - 22 22 Long Term Care License 112,400 112,500 100 Resident Care home License 500 80 (420) Building Permits 2,740,000 2,854,424 114,424 Plumbing Permits 150,000 104,575 (45,425) Electrical Permits 160,000 134,424 (25,576) Signs and Awnings 10,000 36,206 26,206 Other /Misc Permits 325,000 593,512 268,512 Elevator Permits 45,000 57,667 12,667 Heating Vent / AC Permits 260,000 226,610 (33,390) Commercial Drive Permits - 15,702 15,702 Right of Way Permits 70,000 179,648 109,648 Residents Parking Permit 212,000 131,245 (80,755) Visitor Parking Permit 14,300 13,488 (812) Fire supression / Alarm Permit - 775 775 Annual Sign Fees 32,000 3,165 (28,835) Plat PR. & Sign Approval HRG Fees 400 - (400) Alarm Panel Francise Fee - 15,360 15,360 Northwestern / Centel Easement 47,000 56 (46,944) Cable Franchise Fee 800,000 854,870 54,870 Azavar audit Fee - 14,034 14,034 Nicor Franchise Fee - 93,617 93,617 Total Licenses and Permits 8,683,800 8,820,280 136,480 Year ended February 28, 2009 Continued -123- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Intergovernmental - Revenue from Other Agencies Retailer and Service Occupation Tax 9,100,000$ 8,857,994$ (242,006)$ State Income Tax 6,600,000 6,821,169 221,169 State Highway Maintenance 135,000 75,413 (59,587) Project access - 3,750 3,750 Well Child & Immunization - 744 744 Hebasic services grant 76,200 127,670 51,470 Dental Sealant Grant 4,200 834 (3,366) Summer Food Inspections 400 450 50 Kid Care Agreement - 2,800 2,800 Illinois Tobacco Free Community 25,600 25,214 (386) Teen Pregnancy Prevension Grant 60,600 58,013 (2,587) Childhood Lead Poisoning Grant 1,000 362 (638) Teen Parent Services Program 36,100 35,900 (200) Insurance co pay - 176 176 Prostate Cancer Awareness 10,000 9,525 (475) Other State / County Grant 18,700 35,729 17,029 Tanning Parlor Inspection 100 300 200 Violence Crime Victim Asst. Grant 24,700 22,348 (2,352) ICJIA Grant - Victim 47,000 - (47,000) District 65 Dental 1,500 - (1,500) Fire Department Training 10,000 3,860 (6,140) Summer Youth - 15,000 15,000 Leadbase Paint Control Grant - 106,500 106,500 Federal Grant / Aid 136,700 77,357 (59,343) Teen Readers - (1,618) (1,618) Commission on Aging Grant - Advocate 55,800 23,967 (31,833) Civil Defence Grants (F.E.M.A.)24,000 16,522 (7,478) Police Training 8,000 14,582 6,582 HUD Emergency Shelter Grant 88,900 65,326 (23,574) Law Enforcement Block Grant 57,200 (20,934) (78,134) Other Federal Aid 11,600 12,800 1,200 Total Intergovernmental - Revenue from Other Agencies 16,533,300 16,391,753 (141,547) Year ended February 28, 2009 Continued -124- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Charges for Services Recreation Recreation - program 4,606,500$ 4,595,719$ (10,781)$ Recreation - deferral - (58) (58) Recreation - unreconciled - 34,639 34,639 Total Recreation 4,606,500 4,630,300 23,800 Library State Per Capita Grant 90,900 44,941 (45,959) Library Video Rental 33,000 39,205 6,205 Non-Residents Card 3,000 2,500 (500) Library Material Replacement Charged 21,000 16,066 (4,934) Library Material Reserves 7,500 9,199 1,699 Library Miscellaneous Revenues 1,000 1,604 604 Library Copy Machines Charges 27,000 24,101 (2,899) Library Meeting Room Rental 7,500 10,858 3,358 North Branch Rental Inc.- 32,112 32,112 Total Library 190,900 180,586 (10,314) Year ended February 28, 2009 Continued -125- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Charges for Services Other Service Charges Sanitation Classes 11,000$ 9,045$ (1,955)$ Dental Clinic Fees 126,000 109,355 (16,645) Health Clinic Fees - Food Establishment 162,000 201,073 39,073 S.T.D.O.- 31 31 Dental Check up 8,000 2,577 (5,423) Emergency Dental Exam 200 - (200) X-Rays - 20 20 Amalgam Filling 100 - (100) Resin Filling 5,600 705 (4,895) Sedative Filling 100 - (100) Extraction 500 230 (270) Pulpotomy 1,500 140 (1,360) Sealant Office Visit 600 100 (500) Additional Sealant 100 49 (51) Temporary License Fee 4,000 7,477 3,477 Food Delivery Vehicle 8,300 5,812 (2,488) Scavenger Truck 2,300 - (2,300) Beverage Snack Vending Machine 27,800 26,524 (1,276) Tobacco License 11,000 20,765 9,765 BeeKeeper Licenses - 25 25 Birth Certificate 95,000 77,365 (17,635) Dealth Certificate - 16 . 23 47,000 38,507 (8,493) Funeral Director License 6,600 6,480 (120) Year ended February 28, 2009 Continued -126- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Charges for Services - Continued Other Service Charges - Continued Temp Funeral Direct License 5,000$ 4,822$ (178)$ SWANCC Recycling 100,000 99,002 (998) Recycling Service Charged 1,692,400 1,538,430 (153,970) Recycling Service Charge - Penalty 10,000 23,878 13,878 Sanitation Special Pickup Fees 80,000 89,854 9,854 Weights & Measures Examinations 1,000 635 (365) Senior Taxi Coupon Sales 95,000 119,186 24,186 Fire Cost Recovery Charge 10,000 6,075 (3,925) Other Services Charges - 1,584 1,584 Recycling - Material Sales - 9,426 9,426 Condo Conversion Application Fee 40,000 9,600 (30,400) Historic preservation 8,000 3,956 (4,044) Ambulance Service 875,000 886,802 11,802 Towing Charges - (8,955) (8,955) Police Report Fees 16,000 17,302 1,302 Wood Recycling 14,000 27,910 13,910 Zoning Fees 40,000 41,958 1,958 Fire Report Fees 1,300 1,406 106 Fire Building inspections 6,000 10,150 4,150 Alarm Panel Subscription Fees 110,000 189,060 79,060 Skokie Animal Board Fee 300 5,205 4,905 Background check Daycare Prov.- (442) (442) Plan Review 8,000 5,032 (2,968) Total Other Service Charges 3,629,700 3,588,156 (41,544) Total Charges for Services 8,427,100 8,399,042 (28,058) Fines Ticket Fines - Parking 3,547,500 3,567,227 19,727 Regular Fines 200,000 284,591 84,591 Boot Release Fee 95,900 34,851 (61,049) Fire False Alarm Fines 155,000 120,170 (34,830) Police False Alarm Fines - 13,190 13,190 Housing Code Violation Fines - 35,143 35,143 Permit Penalty Fees 15,000 6,680 (8,320) Administrative Adjudication Fine 120,000 187,348 67,348 Library Fines & Fees 208,000 193,082 (14,918) Total Fines 4,341,400 4,442,282 100,882 Year ended February 28, 2009 Continued -127- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Investment Income 550,000$ 240,988$ (309,012)$ Miscellaneous Charges to Other Funds Community Development Fund 856,000 939,976 83,976 Home Fund 34,300 49,016 14,716 Emergency Telephone System Fund 126,000 126,000 - Economic Development Fund 390,000 390,000 - Sherman Garage 42,000 42,000 - Parking Fund - - - Water Fund - Administrative Expense 764,600 764,600 - Sewer Fund 413,800 413,800 - Total Charges to Other Funds 2,626,700 2,725,392 98,692 Miscellaneous Other Revenues Property Sales and Rentals 70,000 187,462 117,462 Donation - 5,100 5,100 Damage to City Signage 4,000 1,668 (2,332) Damage to City property 20,000 17,748 (2,252) Damage to Street Lights - 26,386 26,386 Damage to city trees - 500 500 Damage to Other City Property 8,000 - (8,000) Miscellaneous Revenue 270,700 64,182 (206,518) Taxicab Revenue 4,000 7,375 3,375 Teen baby nursery 41,000 - (41,000) Payment in Lieu of Taxes 132,000 52,302 (79,698) Fund Balance Applied 4,536,100 - (4,536,100) Fees and Merchandise - 14,015 14,015 Trash Cart Sales 30,000 26,012 (3,988) Parking Permits - Ryan Field 12,000 19,549 7,549 Change in Reserves - 282,727 282,727 Contributions from Nortwestern 550,000 550,000 - Total Other Revenues 5,677,800 1,255,026 (4,422,774) Total Miscellaneous 8,304,500 3,980,418 (4,324,082) Total Revenues 88,653,000$ 82,548,904$ (6,104,096)$ Year ended February 28, 2009 Concluded -128- 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 411,800$ 385,921$ 25,879$ City Manager 5,680,281 4,436,371 1,243,910 City Clerk 190,200 207,805 (17,605) Law Department 773,700 673,549 100,151 Human Resources 2,308,800 1,613,728 695,072 Finance 4,900,100 5,381,446 (481,346) Facilities management - 5,091 (5,091) Total General Management and Support 14,264,881 12,703,911 1,560,970 Public Safety Police 23,332,270 24,095,643 (763,373) Fire 13,897,730 14,358,172 (460,442) Total Public Safety 37,230,000 38,453,815 (1,223,815) Public Works Public Works Director 290,000 276,910 13,090 Municipal Service Center 435,300 442,916 (7,616) City Engineer 1,576,100 1,459,163 116,937 Traffic Engineer 2,959,300 2,634,658 324,642 Streets 4,039,800 4,774,250 (734,450) Sanitation 7,064,900 6,729,689 335,211 Total Public Works 16,365,400 16,317,586 47,814 Year ended February 28, 2009 Continued -129- 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 311,500$ 229,276$ 82,224$ Health Department 1,782,100 1,162,502 619,598 Emergency assistance services - 133,241 (133,241) Mental health and community purchased services 1,032,300 1,085,175 (52,875) Commission on Aging 159,400 229,317 (69,917) Subsidized Taxicab Program 292,000 267,529 24,471 Human Relations 496,900 496,280 620 Grants - 142,312 (142,312) Total Health and Human Resource Development 4,074,200 3,745,632 328,568 Recreation and Cultural Opportunities Library 4,805,000 4,902,158 (97,158) Recreation 8,133,300 7,923,553 209,747 Parks and forestry 4,347,800 4,249,832 97,968 Ecology Center 556,200 465,621 90,579 Arts Council 1,011,700 909,704 101,996 Total Recreation and Cultural Opportunities 18,854,000 18,450,868 403,132 Housing and Economic Development Community Development administration 259,700 212,567 47,133 Planning and zoning 514,100 481,249 32,851 Housing rehabilitation and property standards 1,046,400 946,415 99,985 Building code compliance 1,764,000 1,661,247 102,753 Total Housing and Economic Development 3,584,200 3,301,478 282,722 Total Expenditures 94,372,681$ 92,973,290$ 1,399,391$ Year ended February 28, 2009 Concluded -130- 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 2,100,000$ 1,956,273$ (143,727)$ Interest 55,000 20,063 (34,937) Total Revenues 2,155,000 1,976,336 (178,664) Expenditures Public Works 2,350,000 1,645,299 704,701 Excess (Deficiency) of Revenues over (under) Expenditures (195,000) 331,037 526,037 Other Financing (Uses) Operating transfers (out) General Fund (772,500) (772,500) - Net Change in Fund Balance (967,500)$ (441,463) 526,037$ Fund Balances Beginning of year 1,513,985 End of year 1,072,522$ Year ended February 28, 2009 -131- 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 1,776,800$ 1,886,215$ 109,415$ Interest - 21,244 21,244 Miscellaneous - 30,000 30,000 Total Revenue 1,776,800 1,937,459 160,659 Expenditures Housing and economic development 1,178,000 808,583 369,417 Excess of Revenues over Expenditures 598,800 1,128,876 530,076 Other Financing Sources (Uses) Operating transfers in (out) Maple Avenue Garage Fund (650,000) (650,000) - Net Change in Fund Balance (51,200)$ 478,876 530,076$ Fund Balances Beginning of year 1,498,233 End of year 1,977,109$ Year ended February 28, 2009 -132- 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 1,073,700$ 1,150,724$ 77,024$ Interest 25,000 30,849 5,849 Miscellaneous - 575 575 Total Revenue 1,098,700 1,182,148 83,448 Expenditures Public Safety 1,981,100 1,474,090 507,010 Net Change in Fund Balance (882,400)$ (291,942) 590,458$ Fund Balance Beginning of year 2,460,182 End of year 2,168,240$ Year ended February 28, 2009 -133- 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 90,000$ 60,000$ (30,000)$ Developer Contributions 500,000 75,000 (425,000) Rehab Payments 10,000 - (10,000) Interest 10,000 12,634 2,634 Miscellaneous 1,000 22,265 21,265 Total Revenue 611,000 169,899 (441,101) Expenditures Housing and economic development 321,000 44,395 276,605 Excess (Deficiency) of Revenues over (under) Expenditures 290,000 125,504 (164,496) Other Financing (Uses) Transfers in (out) Debt Service Fund (24,000) (24,000) - Net Change in Fund Balance 266,000$ 101,504 (164,496)$ Fund Balance Beginning of year 2,010,302 End of year 2,111,806$ Year ended February 28, 2009 -134- 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 2,074,176$ 1,940,131$ (134,045)$ Miscellaneous - 13,114 13,114 Total Revenues 2,074,176 1,953,245 (120,931) Expenditures Housing and economic development 2,074,176 2,010,945 63,231 Excess (Deficiency) of Revenues over (under) Expenditures - (57,700) (57,700) Other Financing (Uses) Transfers Community Development Loan - 57,700 57,700 - 57,700 57,700 Net Change in Fund Balance -$ - -$ Fund Balance Beginning of year 422,799 End of year 422,799$ Year ended February 28, 2009 -135- 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 329,225$ 330,608$ (1,383)$ Housing Advocacy Program 15,051 15,051 - MBE/Small Business Assistance 52,000 52,000 - Total Administration/Planning 396,276 397,659 (1,383) Economic Development Evanston Community Development Corp.55,000 59,609 (4,609) Technology Innovation Center 15,000 15,000 - Total Economic Development 70,000 74,609 (4,609) Housing Adaptive Devices - 444 (444) Community Development Planning 30,000 - 30,000 Demolition/Vacant Lot Cleanup Program 7,000 21,044 (14,044) Housing Code Compliance 375,000 374,965 35 Housing Rehab Administration 319,000 319,000 - Minor Repairs/Painting Assistance - E.N.A.W.140,000 138,825 1,175 Neighborhood Storefront Imp Program 35,000 23,126 11,874 Total Housing 906,000 877,404 28,596 Year ended February 28, 2009 Continued -136- CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Neighborhood Revitalization Accessible Curb Ramp Program -$ 53,174$ (53,174)$ Alley Paving Program 80,000 80,000 - Curb/Sidewalk Replacement 75,000 42,918 32,082 Curb/Ramp ADA 2008 75,000 - 75,000 Disposition 1817 - 7,929 (7,929) Evanston Day Nursery Energy Imp 10,000 - 10,000 Family Focus Center Improvements 6,600 - 6,600 F/J Landscape Redesign 95,400 57,488 37,912 F/J Kitchen - 27,952 (27,952) Handyman Assistance/Elderly Home Repair - 13,019 (13,019) Special Assessments/Alley Paving 10,000 18,288 (8,288) YMCA Elevator Rehab 40,000 51,614 (11,614) Total Neighborhood Revitalization 392,000 352,382 39,618 Year ended February 28, 2009 Continued -137- CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Public Services Adaptive Equip for Disabled 3,500$ 2,095$ 1,405$ Adopt a Fancy Can 3,500 3,311 189 Community Unity 1 3,000 3,000 - Connections for the Homeless 3,000 3,000 - Divine Wisdom Institute 1,700 1,700 - Evanston Community Defender 45,000 45,000 - Evanston Legal Services CCLAF - - Ex-Offender/Homeless Program 3,200 3,200 - Girl Scouts 4,000 4,000 - Graffiti Removal Program 30,000 30,000 - Interfaith Housing Program/ Home Sharing 13,000 13,000 - Interfaith Action Council 1,000 1,000 - Legacy Project Shorefront - - Legal Assist Foundation 9,000 9,000 - Meals at Home 8,000 8,000 - Metropolitan Family Service - - Food Partners - - Music Inst.1,500 1,500 - North Shore Senior Center 23,000 23,000 - Open studio Art 2,000 2,000 - Preschool Playground - - Safer Neighborhood Area Project-Implementation 2,000 1,969 31 Safer Neighborhood Area Project-Staff Straining 6,500 6,500 - Second Baptist 9,000 9,000 - Senior Crime Prevention 15,000 15,000 - Shorefront NFP Legacy Project - - Smith Park Renovations - - South Evanston Neighborhood Assoc.1,500 2,116 (616) Summer Youth Employment 45,000 45,000 - YAM Annual College Retreat - - Youth Job Center of Evanston 47,000 47,000 - YWCA Shelter Project 29,500 29,500 - Total Public Services 309,900 308,891 1,009 Total Expenditures 2,074,176$ 2,010,945$ 63,231$ Year ended February 28, 2009 Concluded -138- 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 328,489$ 328,489$ -$ Prior year levy - 5,407 5,407 Interest - 296 296 Total Revenues 328,489 334,192 5,703 Expenditures Housing and economic development 445,000 444,000 1,000 Net Change in Fund Balance (116,511)$ (109,808) 6,703$ Fund Balance Beginning of year 420,042 End of year 310,234$ Year ended February 28, 2009 -139- CITY OF EVANSTON, ILLINOIS Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Original and Final Budget Actual Variance Revenues Property taxes 308,703$ 367,567$ 58,864$ Interest 18,000 17,949 (51) Replacement tax 50,000 83,872 33,872 Total Revenues 376,703 469,388 92,685 Expenditures General management and support 193,453 88,392 105,061 Excess of Revenues over Expenditures 183,250 380,996 197,746 Other Financing (Uses) Operating transfers (out) General Assistance Fund (125,000) (125,000) - Net Change in Fund Balance 58,250$ 255,996 197,746$ Fund Balance Beginning of year 452,150 End of year 708,146$ Year February 28, 2009 and March 31, 2008 for City and Township respectively -140- CITY OF EVANSTON, ILLINOIS Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year February 28, 2009 and March 31, 2008 for City and Township respectively Original and Final Budget Actual Variance Revenues Property taxes 967,209$ 956,854$ (10,355)$ Interest 20,000 18,883 (1,117) SSI reimbursement 5,000 29,163 24,163 Emergency assistance reimbursement 65,000 45,239 (19,761) Total Revenues 1,057,209 1,050,139 (7,070) Expenditures General management and support 1,106,848 994,167 (112,681) (Deficiency) of Revenues (under) Expenditures (49,639) 55,972 105,611 Other Financing Sources Transfers in Town Fund 125,000 125,000 - Net Change in Fund Balance 75,361$ 180,972 105,611$ Fund Balance Beginning of year 808,836 End of year 989,808$ -141- 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 10,141,385$ 10,116,288$ 433,300$ 437,906$ 10,935,956$ 8,974,988$ 755,398$ 674,545$ Prior year levy, net - (68,594) - 13,895 - 232,951 - - Investment income 225,000 63,320 600 354 120,000 42,268 10,000 2,509 Miscellaneous - - - - - - - - Total Revenues 10,366,385 10,111,014 433,900 452,155 11,055,956 9,250,207 765,398 677,054 Expenditures General management and support 200 336,375 500 - 335,000 - - - Health and human resources development - - - - - - 800,000 800,000 Debt Service Principal 5,895,000 6,376,046 305,000 305,000 3,400,000 - - - Interest 4,519,128 4,593,912 128,313 128,313 102,000 (55,361) - - Fiscal agent fees 230,000 20,523 - - 40,000 7,126 - - Total Expenditures 10,644,328 11,326,856 433,813 433,313 3,877,000 (48,235) 800,000 800,000 Excess (Deficiency) of Revenues over (under) Expenditures (277,943) (1,215,842) 87 18,842 7,178,956 9,298,442 (34,602) (122,946) Other Financing Sources (Uses) Operating transfers in (out) Bond Proceeds - 13,160,000 - - - - - - Escrow Funding - (13,839,563) - - - - - - Premiums and discounts - 1,349,363 - - - - - - General - - - - (325,000) (325,000) (24,100) (24,100) Economic Development - - - - - - - - Special Assessment 328,944 328,944 - Maple Avenue Garage - - - - (4,600,000) (4,600,000) - - Sherman Garage - - - - (1,872,829) (1,872,829) - - 328,944 998,744 - - (6,797,829) (6,797,829) (24,100) (24,100) Net Changes in Fund Balances 51,001$ (217,098) 87$ 18,842 381,127$ 2,500,613 (58,702)$ (147,046) Fund Balances Beginning of year 1,173,659 13,991 337,195 62,286 End of year 956,561$ 32,833$ 2,837,808$ (84,760)$ Increment District Increment DistrictObligation Debt No. 5 Business Tax Southwest Tax Year Ended February 28, 2009 Special Central General Service District -142- Original Original Original Original Original and Final and Final and Final and Final and Final Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual 1,580,750$ 1,230,915$ 3,406,527$ 4,530,995$ 223,987$ 179,460$ 265,479$ 371,774$ 27,742,782$ 26,516,871$ - - - 27,621 - 1,218 - 868 - 207,959 160,000 56,005 100,000 72,812 - 2,462 - 108 615,600 239,838 - - - - - - - - - 1,740,750 1,286,920 3,506,527 4,631,428 223,987 183,140 265,479 372,750 28,358,382 26,964,668 - - 50,000 285 16,000 78,975 - - 401,700 415,635 - - - - - - - - 800,000 800,000 505,000 512,088 285,000 289,000 - - - - 10,390,000 7,482,134 197,818 159,271 149,328 120,229 - - - - 5,096,587 4,946,364 - - 120,000 - - - 16,000 - 406,000 27,649 702,818 671,359 604,328 409,514 16,000 78,975 16,000 - 17,094,287 13,671,782 1,037,932 615,561 2,902,199 4,221,914 207,987 104,165 249,479 372,750 11,264,095 13,292,887 - - - - - - - - - 13,160,000 - - - - - - - - - (13,839,563) - - - - - - - - - 1,349,363 (141,600) (141,600) (151,900) (151,900) (120,400) (120,400) - - (763,000) (763,000) - - - - - - - - 328,944 328,944 - - - - - - - - (4,600,000) (4,600,000) - - (5,300,000) (5,300,000) - - - - (7,172,829) (7,172,829) (141,600) (141,600) (5,451,900) (5,451,900) (120,400) (120,400) - - (12,206,885) (11,537,085) 896,332$ 473,961 (2,549,701)$ (1,229,986) 87,587$ (16,235) 249,479$ 372,750 (942,790)$ 1,755,801 2,808,862 5,809,463 159,784 10,042 10,375,282 3,282,823$ 4,579,477$ 143,549$ 382,792$ 12,131,083$ Increment DistrictIncrement District Increment District Totals Washington National Tax West Evanston Tax Increment District Howard Ridge TaxHoward Hartrey Tax -143- PROPRIETARY FUND TYPES -144- CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Maple Total Avenue Nonmajor Garage Sherman Proprietary Fund Garage Funds Operating Revenues Charges for services 1,451,066$ 1,637,599$ 3,088,665$ Miscellaneous - 51,057 51,057 Total Operating Revenues 1,451,066 1,688,656 3,139,722 Operating Expenses Excluding Depreciation Operations 1,718,400 1,565,051 3,283,451 Total Operating Expenses Excluding Depreciation 1,718,400 1,565,051 3,283,451 Operating Income (Loss) Before Depreciation (267,334) 123,605 (143,729) Depreciation 733,931 1,023,172 1,757,103 Operating Income (Loss)(1,001,265) (899,567) (1,900,832) Nonoperating Revenues (Expenses) Investment income 119,529 150,946 270,475 Interest expense (74,870) (1,698,445) (1,773,315) Bond expenses and amortization of discount (4,060) - (4,060) Amortization of bond premium - 81,333 81,333 Total Nonoperating Revenues (Expenses)40,599 (1,466,166) (1,425,567) (Loss) Before Transfers and Contributions (960,666) (2,365,733) (3,326,399) Capital Contribution - 13,936 13,936 Transfers In (Out) General Fund 650,000 - 650,000 Central Business Tax Increment District Fund - 1,872,829 1,872,829 Washington Tax Increment District Fund - 5,300,000 5,300,000 Economic Development Fund 4,600,000 - 4,600,000 Parking Fund (28,936,069) (4,901,718) (33,837,787) Transfers In (Out)(23,686,069) 2,271,111 (21,414,958) Change in Net Assets (24,646,735) (80,686) (24,727,421) Total Net Assets - Beginning of Year 24,646,735 80,686 24,727,421 Total Net Assets - End of Year -$ -$ -$ Year ended February 28, 2009 Business-type Activities-Enterprise Fund The accompanying notes are an integral part of this statement. -145- CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Cash Flows Maple Total Avenue Nonmajor Garage Sherman Proprietary Fund Garage Funds Cash Flows from Operating Activities Receipts from customers and users 1,457,883$ 1,688,656$ 3,146,539$ Receipts from interfund services provided - 727,072 727,072 Payments to suppliers (1,364,974) (1,618,864) (2,983,838) Payments for interfund services provided (168,616) (4,282,738) (4,451,354) Net Cash (Used for) Operating Activities (75,707) (3,485,874) (3,561,581) Cash Flows from Noncapital Financing Activities Transfers In (Out) General Fund 650,000 - 650,000 Central Business Tax Increment District Fund - 1,872,829 1,872,829 Washington Tax Increment District Fund - 5,300,000 5,300,000 Parking Fund (7,378,460) (5,270,730) (12,649,190) Economic Development Fund 4,600,000 - 4,600,000 Net Cash Provided by (used for) Noncapital Financing Activities (2,128,460) 1,902,099 (226,361) Cash Flows from Capital and Related Financing Activities Net proceeds from bond refundings - 55,000 55,000 Principal paid on general obligation bonds (4,000,000) (5,340,000) (9,340,000) Interest paid on general obligation bonds (74,870) (1,334,957) (1,409,827) Proceeds from bond premium - 813,334 813,334 Net Cash (Used for) Capital and Related Financing Activities (4,074,870) (5,806,623) (9,881,493) Cash Flows from Investing Activities Interest income 119,529 150,946 270,475 Net Cash Provided by Investing Activities 119,529 150,946 270,475 Net (Decrease) in Cash and Equivalents (6,159,508) (7,239,452) (13,398,960) Cash and Equivalents Beginning of year 6,159,508 7,239,452 13,398,960 End of year -$ -$ -$ Reconciliation Cash and equivalents Unrestricted -$ -$ -$ -$ -$ -$ Year ended February 28, 2009 Business-type Activities-Enterprise Fund -146- CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Cash Flows - Continued Maple Total Avenue Nonmajor Garage Sherman Proprietary Fund Garage Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss)(1,001,265)$ (899,567)$ (1,900,832)$ Depreciation 733,931 1,023,172 1,757,103 Changes in assets and liabilities Other receivables (3,580) - (3,580) lnterfund receivable - 727,072 727,072 Accrued interest receivable 10,397 - 10,397 lnterfund payable (168,616) (4,282,738) (4,451,354) Vouchers payable 353,426 (53,813) 299,613 Net Cash Provided by (Used for) Operating Activities (75,707)$ (3,485,874)$ (3,561,581)$ Business-type Activities-Enterprise Fund Year ended February 28, 2009 -147- CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Assets Cash and equivalents 2,429,493$ 347,866$ 2,792,676$ 1,436,143$ 7,006,178$ Restricted cash and equivalents and investments - 673,537 616,556 1,152,599 2,442,692 Receivables Accounts - billed 941,803 - - - 941,803 Accounts - unbilled 821,253 - - - 821,253 Other Receivables - - - 6,887 6,887 Accrued interest - - 15,017 - 15,017 Inventory 639,684 - - - 639,684 Total Current Assets 4,832,233 1,021,403 3,424,249 2,595,629 11,873,514 Capital Assets Land 555,415 - - - 555,415 Construction in progress 74,048 - - 3,452,049 3,526,097 Capital assets being depreciated 67,068,536 - - - 67,068,536 Less accumulated depreciation (18,207,726) - - - (18,207,726) Total Capital Assets 49,490,273 - - 3,452,049 52,942,322 Total Assets 54,322,506$ 1,021,403$ 3,424,249$ 6,047,678$ 64,815,836$ February 28, 2009 Assets -148- CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets February 28, 2009 Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Liabilities Vouchers payable 361,238$ -$ -$ 324,987$ 686,225$ Vouchers payable - restricted - - - 352,599 352,599 Interest payable - restricted - 15,259 - - 15,259 Revenue bonds payable 437,500 - - - 437,500 Revenue bonds payable - restricted - 87,500 - - 87,500 Due to other funds 104,046 - - - 104,046 Other Payable 6,887 - - - 6,887 Compensated absences payable 309,768 - - - 309,768 Total Current Liabilities 1,219,439 102,759 - 677,586 1,999,784 Long-Term Liabilities Revenue bonds payable 1,720,000 - - - 1,720,000 OPEB liabilty 20,709 - - - 20,709 Compensated absences payable 166,904 - - - 166,904 Unamortized bond discount on bonds payable 14,677 - - - 14,677 Total Long-Term Liabilities 1,922,290 - - - 1,922,290 Total Liabilities 3,141,729 102,759 - 677,586 3,922,074 Net Assets Invested in capital assets, net of related debt 47,318,096 - - 3,452,049 50,770,145 Restricted for debt service - 570,778 616,556 - 1,187,334 Restricted for Capital Improvements - - - 800,000 800,000 Unrestricted 3,862,681 347,866 2,807,693 1,118,043 8,136,283 Total Net Assets 51,180,777 918,644 3,424,249 5,370,092 60,893,762 Total Liabilities and Net Assets 54,322,506$ 1,021,403$ 3,424,249$ 6,047,678$ 64,815,836$ Liabilities and Net Assets -149- 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 -$ -$ 3,088,671$ 3,088,671$ Investment earnings 23,342 61,028 65,311 149,681 Total Increases 23,342 61,028 3,153,982 3,238,352 Decreases Bond principal 512,500 - - 512,500 Bond interest 107,687 - - 107,687 Purchase of capital assets - - 3,948,687 3,948,687 Payment of expense 300 90 273,384 273,774 Total Decreases 620,487 90 4,222,071 4,842,648 Net Increase (Decrease)(597,145) 60,938 (1,068,089) (1,604,296) Net Assets Beginning of year 1,515,789 3,363,311 6,438,181 11,317,281 End of year 918,644$ 3,424,249$ 5,370,092$ 9,712,985$ Year ended February 28, 2009 -150- CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual (With Comparative Totals for the Year Ended February 29, 2008) Prior Year Budget Actual Actual Operating Revenues Charges for services 13,325,600$ 13,208,340$ 12,791,917$ Miscellaneous 402,200 476,856 446,705 Total Operating Revenues 13,727,800 13,685,196 13,238,622 Operating Expenses Excluding Depreciation Administration 885,300 674,624 668,969 Operations Pumping 2,323,800 2,380,075 2,130,547 Filtration 2,219,600 1,944,713 1,798,666 Meter maintenance 341,200 341,754 313,627 Distribution 1,522,500 1,270,249 1,236,655 Other 934,300 981,720 936,511 Total Operating Expenses Excluding Depreciation 8,226,700 7,593,135 7,084,975 Operating Income Before Depreciation 5,501,100 6,092,061 6,153,647 Depreciation - 1,417,334 1,405,617 Operating Income 5,501,100 4,674,727 4,748,030 Nonoperating Revenues (Expenses) Investment income 100,000 43,956 163,197 Interest expense - (107,687) (125,746) Bond expenses and amortization of discount - 1,129 1,129 Net book value of capital assets disposed - (27,898) - Total Nonoperating Revenues (Expenses)100,000 (90,500) 38,580 Income Before Transfers 5,601,100 4,584,227 4,786,610 Transfers In (Out) Transfer In - - 2,000,000 Transfer Out (2,778,600) (2,778,600) (4,693,600) Total Transfers In (Out)(2,778,600) (2,778,600) (2,693,600) Net Income 2,822,500$ 1,805,627 2,093,010 Other Changes in Unreserved Net Assets lntrafund transfers in (out) - net assets - reserved - restricted accounts 1,480,203 (1,611,437) Increase in Unreserved Net Assets 3,285,830 481,573 Unreserved Net Assets Beginning of year 47,894,947 47,413,374 End of year 51,180,777$ 47,894,947$ Year ended February 28, 2009 -151- 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 29, 2008) Prior Year Budget Actual Actual Charges for Services, Net Water Sales Evanston 6,292,800$ 5,698,960$ 6,012,643$ Skokie 3,238,800 2,689,305 3,158,396 Northwest Water Commission 3,794,000 4,820,075 3,620,878 Total Charges for Services 13,325,600 13,208,340 12,791,917 Miscellaneous Fees and outside work 80,000 156,678 97,437 Fees, merchandise and other 322,200 320,178 349,268 Total Miscellaneous 402,200 476,856 446,705 Total Operating Revenues 13,727,800$ 13,685,196$ 13,238,622$ Year ended February 28, 2009 -152- 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. -153- CITY OF EVANSTON, ILLINOIS Internal Service Funds Statement of Net Assets Fleet Services Insurance Totals Current Assets Cash and equivalents 613,614$ 3,795,479$ 4,409,093$ Receivables - other 33,537 - 33,537 Inventories 267,572 - 267,572 Total Unrestricted Current Assets 914,723 3,795,479 4,710,202 Capital Assets Cost 20,308,430 - 20,308,430 Accumulated depreciation (14,079,046) - (14,079,046) Total Capital Assets 6,229,384 - 6,229,384 Total Assets 7,144,107 3,795,479 10,939,586 Liabilities and Fund Equity Current Liabilities Vouchers payable 195,576 40,684 236,260 Compensated absences payable 80,389 - 80,389 Claims payable - 2,395,337 2,395,337 Due to other funds 43,518 3,540 47,058 Total Current Liabilities 319,483 2,439,561 2,759,044 Long-Term Liabilities OPEB Liability 12,199 - 12,199 Claims payable - 2,963,263 2,963,263 Total Long-Term Liabilities 12,199 2,963,263 2,975,462 Total Liabilities 331,682 5,402,824 5,734,506 Net Assets (Deficit) Invested in capital assets, net of related debt 6,229,384 - 6,229,384 Unrestricted 583,041 (1,607,345) (1,024,304) Total net assets (deficit)6,812,425$ (1,607,345)$ 5,205,080$ February 28, 2009 Assets -154- 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 3,839,594$ 1,800,000$ 5,639,594$ Sewer Fund 258,600 - 258,600 Water Fund 331,200 - 331,200 Motor Vehicle Parking System Fund 99,206 - 99,206 Miscellaneous 836 11,060 11,896 Total Operating Revenues 4,529,436 1,811,060 6,340,496 Operating Expenses General support 314,532 - 314,532 Major maintenance 3,497,043 - 3,497,043 Vehicle body maintenance 384 - 384 General liability claims - (705,888) (705,888) Workers compensation claims - 3,016,295 3,016,295 Other - 761,293 761,293 Total Operating Expenses 3,811,959 3,071,700 6,883,659 Operating Income (Loss) Before Depreciation 717,477 (1,260,640) (543,163) Depreciation 1,225,265 - 1,225,265 Operating Income (Loss)(507,788) (1,260,640) (1,768,428) Nonoperating Revenues (Expenses) Investment income 14,140 73,995 88,135 Gain (loss) on disposition of assets 112,671 - 112,671 Total Nonoperating Revenues (Expenses)126,811 73,995 200,806 Change in Net Assets (380,977) (1,186,645) (1,567,622) Total Net Assets (Deficit) - Beginning of Year 7,193,402 (420,700) 6,772,702 Total Net Assets (Deficit)- End of Year 6,812,425$ (1,607,345)$ 5,205,080$ Year ended February 28, 2009 -155- 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 4,523,198$ 1,811,060$ 6,334,258$ Receipts from interfund services provided 2,470 - 2,470 Payments to suppliers (3,453,272) (1,306,818) (4,760,090) Payments to employees (329,447) (3,016,295) (3,345,742) Payments for interfund services provided - 2,474 2,474 Net Cash Provided by (used for) Operating Activities 742,949 (2,509,579) (1,766,630) Cash Flows from Capital and Related Financing Activities Sale of capital assets 112,671 - 112,671 Acquisition and construction of capital assets (1,755,496) - (1,755,496) Net Cash Used for Capital and Related Financing Activities (1,642,825) - (1,642,825) Cash Flows from Investing Activities Sale of investments 1,057,590 5,871,041 6,928,631 Interest income 14,140 73,995 88,135 Net Cash provided by Investing Activities 1,071,730 5,945,036 7,016,766 Net Increase in Cash and Cash Equivalents 171,854 3,435,457 3,607,311 Cash and Equivalents Beginning of year 441,760 360,022 801,782 End of year 613,614$ 3,795,479$ 4,409,093$ Year ended February 28, 2009 Continued -156- 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 (507,788)$ (1,260,640)$ (1,768,428)$ Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation 1,225,265 - 1,225,265 Changes in assets and liabilities Increase/decrease in A/R miscellaneous (7,802) - (7,802) Other receivables 1,564 - 1,564 lnterfund receivable 2,470 - 2,470 Inventories 105,458 - 105,458 Compensated absences (21,231) - (21,231) OPEB Liability 6,316 - 6,316 Accounts payable (59,827) 18,439 (41,388) lnterfund payable - 2,474 2,474 Vouchers payable (1,476) - (1,476) Claims payable - (1,269,852) (1,269,852) Net Cash Provided By (Used For) Operating Activities 742,949$ (2,509,579)$ (1,766,630)$ Year ended February 28, 2009 Concluded -157- AGENCY FUND -158- CITY OF EVANSTON, ILLINOIS Beginning of End of Year Additions Deletions Year Assets Current Assets Cash and short term investments 21,073$ -$ -$ 21,073$ Total Assets 21,073$ -$ -$ 21,073$ Liabilities Due to special assessment bondholders 21,073$ -$ -$ 21,073$ Total Liabilities 21,073$ -$ -$ 21,073$ Special Assessment Agency Fund Statement of changes of Assets and Liabilities Year Ending February 28, 2009 -159- STATISTICAL SECTION (UNAUDITED) -160- Statistical Section Contents Page Financial Trends 162 - 165 Revenue Capacity 166 - 168 Debt Capacity 169 - 171 Demographic and Economic Information 172 - 173 Operating Information 174 - 179 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. -161- CITY OF EVANSTON, ILLINOIS Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2004 2005 2006 2007 2008 2009 Governmental Activites Invested in Capital Assets, net of related debt (9,753)$ 426$ 34,428$ 31,133$ 31,542$ 37,278$ Restricted 33,415 32,811 31,169 30,034 23,168 26,238 Unrestricted 32,861 43,010 15,408 25,171 28,231 17,539 Total Governmental Activities net assets 56,523$ 76,247$ 81,005$ 86,338$ 82,941$ 81,055$ Business-type Activities Invested in Capital Assets, net of related debt 103,339$ 114,442$ 129,084$ 140,621$ 159,185$ 172,399$ Restricted 11,158 11,274 10,449 9,374 1,986 1,987 Unrestricted 23,332 21,478 23,483 21,417 23,589 27,586 Total Business-type Activities net assets 137,829$ 147,194$ 163,016$ 171,412$ 184,760$ 201,972$ Primary Government Invested in Capital Assets, net of related debt 93,586$ 114,868$ 163,512$ 171,754$ 190,727$ 209,677$ Restricted 44,573 44,085 41,618 39,408 25,154 28,225 Unrestricted 56,193 64,488 38,891 46,588 51,820 45,125 Total Primary Governemnt net assets 194,352$ 223,441$ 244,021$ 257,750$ 267,701$ 283,027$ Note: A Ten Year history is not yet available. Source: City Finance department -162- CITY OF EVANSTON, ILLINOIS Changes in Net Assets Last Five Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2004 2005 2006 2007 2008 2009 Expenses Governmental Activites General government 15,791$ 14,451$ 19,537$ 19,951$ 20,072$ 18,017$ Public Safety 39,237 31,168 45,951 46,368 48,763 49,484 Public Works 13,065 14,225 14,632 16,505 21,566 21,628 Health & Human Resource Development 5,370 5,843 4,781 6,108 4,982 4,546 Housing & Economic Development 5,973 6,757 6,850 7,924 7,090 6,965 Culture and Recreation 17,129 18,276 19,792 18,303 20,634 20,002 Interest on Long-term Debt 4,900 5,086 5,874 6,926 5,522 4,041 Total governmental activities expenses 101,465 95,806 117,417 122,085 128,630 124,683 Business-type Activities Water 8,992 8,176 8,760 8,778 8,668 9,391 Sewer 8,964 8,781 9,219 9,588 8,972 8,726 Motor vehicle parking system 3,468 4,777 2,904 2,963 2,403 8,896 Sherman garage - - - 1,613 4,270 - Maple avenue garage 3,028 3,148 3,096 2,910 2,682 - Total Business-type Activities 24,452 24,882 23,979 25,852 26,996 27,013 Total primary government expenses 125,917$ 120,688$ 141,396$ 147,937$ 155,625$ 151,696$ Program Revenues Governmental Activites Charges for Services General government 12,750$ 13,262$ 13,060$ 13,630$ 12,639$ 13,348$ Culture and Recreation 3,739 3,731 4,310 4,353 4,521 4,637 Other activities 6,799 9,253 10,293 8,779 14,518 10,817 Operating grants and contributions 3,480 3,713 3,441 3,679 5,982 4,589 Capital Grants and Contributions 1,459 212 1,127 185 118 113 Total governmental activities program revenues 28,227 30,171 32,231 30,626 37,778 33,504 Business-type activities Charges for Services Water 13,478 13,187 13,961 12,639 13,239 13,685 Sewer 15,436 14,913 16,077 14,394 14,239 13,774 Sherman garage - - - 779 1,950 - Motor vehicle parking system 3,266 3,011 2,965 3,059 3,084 6,719 Maple avenue garage fund 1,263 1,512 1,622 1,417 1,430 - Total Business-type activities program reveneus 33,443 32,623 34,625 32,288 33,941 34,178 Ttoal primary government program revenues 61,670$ 62,794$ 66,856$ 62,914$ 71,719$ 67,682$ Net (expense)/revenue Governmental activities (73,238) (65,635) (85,186) (91,459) (90,852) (91,179) Business-type activites 8,991 7,741 10,646 6,436 6,945 7,165 Total Primary Government net expense (64,247) (57,894) (74,540) (85,023) (83,906) (84,014) General Revenues and Other Changes in Net Assets Governmental Activites Taxes Property taxes 75,929$ 79,715$ 89,810$ 61,983$ 46,947$ 56,217$ Sales taxes 345 345 - 14,387 16,172 15,500 Investment earnings 1,710 1,547 2,997 3,752 3,653 360 Miscellaneous 2,096 4,996 1,412 17,287 25,799 26,684 Transfers (4,335) (1,244) (4,277) (616) (5,116) (9,469) 75,745 85,359 89,942 96,793 87,455 89,292 Fund Balance Applied - - - - - - Total governmental activites 75,745 85,359 89,942 96,793 87,455 89,292 Business-type activities Investment earnings 343 380 896 1,344 1,287 606 Miscellaneous - - - - - (28) Transfers 4,335 1,244 4,277 616 5,116 9,469 Total business-type activites 4,678 1,624 5,173 1,960 6,403 10,047 Total primary government 80,423$ 86,983$ 95,115$ 98,753$ 93,858$ 99,339$ Changes in Net Assets Governmental activities 2,507$ 19,724$ 4,756$ 5,334$ (3,397)$ (1,887)$ Business-type activites 13,669 9,365 15,819 8,396 13,348 17,212 Total primary government 16,176$ 29,089$ 20,575$ 13,730$ 9,951$ 15,325$ Source: City Finance department Note: A Ten Year History is not yet available.-163- CITY OF EVANSTON, ILLINOIS Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General Fund Reserved 745$ 3,104$ 2,820$ 4,614$ 4,665$ 7,948$ 6,027$ 1,327$ 1,108$ 1,275$ Unreserved 9,327 11,341 12,438 13,110 14,375 15,209 18,804 24,866 24,840 19,752 Total general fund 10,072$ 14,445$ 15,258$ 17,724$ 19,040$ 23,157$ 24,831$ 26,193$ 25,948$ 21,027$ All Other Governmental Funds Reserved 26,867$ 23,014$ 25,683$ 29,211$ 28,750$ 30,761$ 33,937$ 31,741$ 29,739$ 31,757$ Unreserved, reported in Special revenue funds 5,033 6,371 7,507 60,514 4,617 5,249 5,171 5,587 6,649 10,356 Capital Projects Funds 14,494 27,222 12,648 - 58,816 49,476 31,696 23,965 25,620 20,899 Total all other governmental funds 46,394$ 56,607$ 45,838$ 89,725$ 92,183$ 85,486$ 70,804$ 61,293$ 62,008$ 63,012$ Note: Fund balances for debt service have been included in the reserved amounts. Source: City Finance department -164- CITY OF EVANSTON, ILLINOIS Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Revenues Taxes 62,382$ 67,585$ 68,749$ 58,814$ 63,833$ 66,744$ 75,661$ 77,137$ 75,767$ 84,035$ Licenses, fees and permits 5,333 6,436 7,405 6,459 6,699 6,773 9,164 8,061 10,276 8,820$ Fines and penalties 2,625 2,782 3,242 3,742 4,163 3,999 3,781 4,029 4,660 4,442$ Charges for services 4,860 5,491 5,515 6,262 5,997 6,053 6,905 7,167 7,732 8,399$ Special Assessments - - - 208 217 365 546 565 520 516$ Intergovernmental 7,259 5,448 5,859 19,116 18,586 21,618 21,106 21,402 22,625 21,013$ Investment Earnings 2,477 3,297 2,458 1,255 1,650 1,540 2,970 3,695 3,402 272$ Other Revenues 4,399 4,300 4,976 6,859 6,953 9,451 5,812 5,578 5,116 4,679$ Total Revenues 89,335 95,339 98,204 102,715 108,098 116,543 125,945 127,634 130,098 132,176 Expenditures General Government 9,732 10,107 13,025 12,565 13,365 14,666 15,601 14,539 18,190 16,498 Public Safety 22,505 23,928 25,454 32,093 33,896 36,323 39,094 39,690 42,466 49,999 Public Works 12,678 12,037 11,655 10,847 11,119 12,070 13,242 14,282 18,868 18,913 Recreation and cultural opportunities 11,730 12,107 13,028 13,712 14,287 15,493 16,526 16,683 19,118 18,942 Health and Human Development 4,342 4,744 4,621 4,839 5,272 5,801 4,566 5,850 4,982 4,546 Housing and Economic Development 7,013 5,620 6,293 5,662 5,882 6,717 6,646 7,683 7,089 6,963 Pensions 8,537 8,801 9,277 4,209 2,688 1,372 4,628 5,645 - - Capital Outlay 6,047 10,464 16,837 13,301 9,941 18,208 42,087 18,986 12,416 8,209 Debt Service Interest 4,529 4,770 4,339 4,846 5,163 5,027 5,857 6,927 5,128 5,143 Fiscal agent fees 359 323 517 42 28 Principal 6,188 6,325 6,300 6,585 9,385 7,885 7,690 11,530 10,815 9,885 Total governmental activities expenditure 93,301 98,903 110,829 108,659 110,998 123,921 156,260 142,332 139,114 139,126 Net (expense)/revenue Governmental activities (3,966) (3,564) (12,625) (5,944) (2,900) (7,378) (30,315) (14,698) (9,016) (6,950) Other financing sources (uses) Proceeds from borrowing 37,251$ 15,314$ -$ 57,066$ 24,917$ 25,724$ 31,332$ 24,916$ 31,444$ 24,340$ Payment/Proceeds from refunding (32,221) - - - - - - - - - Capitalized interest income - - - 773 - - 355 - - 839 Capitalized interest expense - - - (773) - - (355) - - - Proceeds sale property/other 45 - 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 7,705 3,526 5,619 8,259 9,762 6,020 7,032 6,529 8,975 5,927 Transfers (out)(5,174) (2,210) (3,893) (9,572) (15,287) (15,062) (14,432) (10,528) (15,344) (14,794) Total Other financing sources (uses)7,606 16,630 2,044 51,621 6,674 4,796 17,306 6,549 9,485 3,032 Net Changes in Fund Balance 3,640$ 13,066$ (10,581)$ 45,677$ 3,774$ (2,582)$ (13,009)$ (8,149)$ 469$ (3,917)$ Debt Service as a percentage of noncapital expenditures 12.28% 12.55% 11.32% 11.99% 14.40% 12.21% 11.87% 14.96% 12.58% 11.48% Source: City Finance department -165- CITY OF EVANSTON, ILLINOIS Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Levy Total Total Total Year Residential Farm Commercial Industrial Railroad Equalized Assessed Actual Tax Ended Property Property Property Property Property Value Value Rate 1998 789,833,544 16,895 413,956,877 90,809,247 293,665 1,294,910,228 3,884,730,684 1.888 1999 821,467,155 16,895 406,217,660 72,384,000 286,492 1,300,372,202 3,901,116,606 1.934 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 Note: 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. Source: Cook County Assessor's office -166- CITY OF EVANSTON, ILLINOIS Principal Property Tax Payers Current year and Nine Years Ago 2008 (2007 EAV)1999 (1998 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 Golub & Company 29,797,204 1 1.07%Rotary International 14,877,560 1 1.09% Rotary International 22,909,065 2 0.83%Individual Taxpayer 9,083,061 2 0.66% RECP CBRE 22,617,724 3 0.82%Church & Chgo Ltd Prtn 8,617,141 3 0.63% Sherman Plaza LLC 20,703,729 4 0.75%The OMNI Orrington Hotel 7,907,493 4 0.58% Church St Plaza 18,678,155 5 0.67%Taxpayer of Record 6,476,664 5 0.47% Church & Chgo Ltd Prtn 15,530,484 6 0.56%Taxpayer of Record 6,420,409 6 0.47% Omni Orrington Hotel 14,454,696 7 0.52%Bank One Bank Buildings 5,054,708 7 0.37% Evanston Plaza Freed 14,046,480 8 0.51%SB Yen Management Group 3,753,722 8 0.27% Parliament Enterprises 13,329,516 9 0.48%L.Solomon 3,372,609 9 0.25% Evanston Hotel Assoc.12,867,965 10 0.46%First Dearborn Prop.3,181,747 10 0.23% Total 184,935,018 6.67%68,745,114 5.02% Total EAV 2,772,640,029 Total EAV 1,370,237,932 Source: Evanston GIS Cook County 2007 AV by PIN Summary -167- 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 1999 25,137,352 24,468,693 97.34%425,270 24,893,963 99.03% 2000 26,217,646 25,319,911 96.58%421,153 25,741,064 98.18% 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 See Note See Note See Note See Note See Note Source: City Finance department Note: Levy Year 2008 is collected beyond fiscal year end 2009 through 12/31/09 -168- CITY OF EVANSTON, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (2)Net Gross (3)Net General (1)General Debt Debt Net Debt to Obligation Fiscal Equalized Obligation Service Payable General Equalized Bonded Year Assessed Bonded Monies From Other Obligation Assessed Debt Ended Population Valuation Debt Available Revenues Debt Valuation Per Capita 2000 73,233 1,300,372,202 128,981,760 4,182,913 64,175,000 60,623,847 4.66%827.82 2001 74,239 1,286,459,805 156,955,729 4,562,562 91,710,000 60,683,167 4.72%817.40 2002 74,239 1,615,839,177 147,832,588 5,193,168 86,835,000 55,804,420 3.45%751.69 2003 74,239 1,710,663,113 194,086,731 6,942,441 123,720,000 63,424,290 3.71%854.33 2004 74,239 1,737,543,904 191,073,334 6,592,437 114,445,000 70,035,897 4.03%943.38 2005 74,239 1,727,147,885 187,110,000 6,678,359 106,935,000 73,496,641 4.26%990.00 2006 74,239 2,095,611,570 195,875,000 6,551,304 110,212,500 79,111,196 3.78% 1,065.63 2007 74,239 2,242,753,022 187,745,000 6,504,507 96,780,000 84,460,493 3.77% 1,137.68 2008 74,239 2,245,892,746 181,750,000 6,146,567 81,455,000 94,148,433 4.19% 1,268.18 2009 74,239 2,772,340,029 171,945,001 7,317,930 62,079,183 102,547,888 3.70% 1,381.32 Notes: (1) (2) (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 Central Business Tax Increment District 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, the Maple Street Parking 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. Includes contracts payable from governmental funds. Excludes limited purpose special service district bonds and general obligation notes payable under line of credit with Northwestern University. -169- 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 115,961,136$ 100.000% 115,961,136$ Other bonded debt County of Cook 2,953,610,000 1.557% 45,987,708 Cook County Forest Preserve District 121,270,000 1.557% 1,888,174 Metropolitan Water Reclamation District 1,441,076,915 1.589% 22,898,712 High School District 202 20,806,445 88.620% 18,438,672 School District 65 34,520,000 88.620% 30,591,624 Skokie Park District 10,910,000 0.678%73,970 Total Overlapping Debt 4,582,193,360 119,878,860 Total Direct and Overlapping Debt 4,698,154,496$ 235,839,996$ Source: Cook County CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities As of February 28, 2009 -170- CITY OF EVANSTON, ILLINOIS Pledged-Revenue Coverage Last Ten Fiscal Years Water Revenue Bonds Utility Less:Net Fiscal Service Operating Available Debt Service Year Charges Expenses Resources Principal Interest Coverage 2000 13,709,645 5,602,297 8,107,348 2,170,000 666,466 2.86 2001 13,509,413 5,430,908 8,078,505 2,245,000 589,559 2.85 2002 13,005,269 5,670,480 7,334,789 2,325,000 494,210 2.60 2003 13,687,288 9,347,238 4,340,050 2,200,000 343,795 1.71 2004 13,583,515 7,056,290 6,527,225 805,000 235,913 6.27 2005 13,338,642 6,395,231 6,943,411 805,000 206,575 6.86 2006 14,380,966 6,705,865 7,675,101 865,000 177,355 7.36 2007 13,196,942 6,900,063 6,296,879 470,000 145,088 10.24 2008 13,787,014 7,138,056 6,648,959 485,000 128,713 10.83 2009 13,878,833 7,866,909 6,011,924 510,000 110,913 9.68 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. -171- CITY OF EVANSTON, ILLINOIS Demographic and Economic Statistics Last Ten Years Per Capita Education Personal Median Level in Years School Unemployment Year Population Income Age of Schooling Enrollment Rate 2000 73,233 30,068 31.9 13.6 10,068.0 3.5% 2001 74,239 30,068 31.9 13.6 9,999.0 4.2% 2002 74,239 33,645 32.5 13.6 10,889.0 5.0% 2003 74,239 36,296 32.5 13.6 9,766.0 5.4% 2004 74,239 36,296 32.5 13.6 9,849.0 5.0% 2005 74,239 37,384 32.5 13.6 9,740.0 5.0% 2006 74,239 39,103 32.5 13.6 9,550.0 4.5% 2007 74,239 39,103 32.5 13.6 9,550.0 4.4% 2008 74,239 39,103 32.5 13.6 9,550.0 4.6% 2009 74,239 - 32.5 13.6 9,550.0 4.7% Source: Various Government agencies -172- CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Ten Years Ago Employer Employees %Rank Employer Employees %Rank Northwestern University 5,325 36%1 Northwestern University 5,650 38%1 Evanston Northwestern Healthcare 3,780 25%2 Evanston Northwestern Healthcare 3,400 23%2 St. Francis Hospital 1,649 11%3 St. Francis Hospital 2,000 13%3 City of Evanston 1,000 7%4 Evanston School District 65 1,100 7%4 Evanston School District 65 700 5%5 City of Evanston 780 5%5 School district 202 566 4%6 Presbyterian Homes/McGaw Care 500 3%6 Presbyterian Homes/McGaw Care 533 4%7 School District 202 480 3%7 Rotary International 460 3%8 Rotary International 410 3%8 Jewel/Osco Food Stores 455 3%9 Mather Foundation 400 3%9 C.E. Neihoff & Co.450 3%10 National Louis University 300 2%10 Total 14,918 15,020 Source: City Economic Development Division Morris Robinson 2009 1999 -173- CITY OF EVANSTON, ILLINOIS Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program General Government City Clerk 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 City Manager's Office 8.05 7.55 7.55 7.55 7.25 7.25 7.25 7.25 13.70 31.53 MBIS 16.75 17.75 20.75 21.50 21.80 22.80 24.80 23.80 25.50 - Legal 6.50 7.50 7.50 6.00 6.00 7.00 7.00 7.00 7.00 7.00 Human Resources 9.00 8.00 8.00 8.00 7.00 7.00 7.00 8.00 8.00 8.00 Finance 23.50 26.00 27.00 26.00 24.50 24.50 26.50 25.50 26.50 29.50 Facilities Management 23.00 23.00 24.00 23.00 23.00 23.10 21.10 21.20 - - Community Development 36.00 38.00 38.00 36.00 34.00 36.00 36.00 36.00 36.00 35.00 Police 211.00 211.80 214.80 212.30 213.80 217.50 219.50 221.75 220.75 220.75 Fire 109.00 109.00 109.00 109.00 109.00 109.00 110.00 111.00 111.00 112.00 Human & Health Services 45.93 45.73 45.03 41.73 39.54 39.30 39.30 40.15 29.68 24.90 Public Works 92.51 91.50 90.50 90.00 90.00 90.25 91.25 90.25 108.45 105.45 Human Relations 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 - - Library 65.52 65.52 66.37 67.17 66.20 66.65 67.18 67.19 66.69 69.35 Recreation, Parks & Forestry 93.38 112.22 124.82 122.25 113.94 119.20 121.30 119.90 115.90 112.75 Total General Fund 747.14 770.57 790.32 777.50 762.03 775.55 784.18 784.99 771.17 758.23 Emergency Telephone System 2.00 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 4.00 CDBG 2.00 2.00 3.50 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 1.45 1.45 1.30 2.30 Downtown II TIF Fund - - - - - - - 1.00 - - Maple Ave. Garage - - - - - - 1.00 1.00 1.00 1.00 Parking Systems 13.00 13.00 13.00 13.00 13.00 13.00 14.00 14.50 14.50 14.50 Special Engineering - - - - - - - - - - Water 42.50 44.00 44.00 44.00 44.00 43.00 43.00 43.00 43.00 43.00 Sewer 13.50 14.00 14.00 14.00 14.00 14.00 13.50 14.00 14.00 14.00 Fleet Services 17.00 17.00 17.00 17.00 17.00 17.00 17.00 17.00 15.00 15.00 Insurance Fund - - - 2.00 1.30 1.30 1.30 1.30 1.00 2.00 Total Other Funds 91.45 94.45 95.95 96.45 96.75 95.75 97.25 99.25 95.80 97.80 Total All Funds 838.59 865.02 886.27 873.95 858.78 871.30 881.43 884.24 866.97 856.03 Source: City of Evanston Budget Division -174- CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 City of Evanston 1.888 1.934 2.033 1.628 1.610 1.698 1.528 1.491 1.527 1.283 Consolidated Elections - 0.023 - 0.032 - 0.029 - 0.014 - 0.012 Cook County 0.911 0.854 0.824 0.746 0.690 0.630 0.593 0.533 0.500 0.446 Cook County Forest Preserve District 0.072 0.070 0.069 0.067 0.061 0.059 0.060 0.060 0.057 0.053 Suburban T.B. Sanitarium 0.008 0.008 0.008 0.007 0.006 0.004 0.001 0.005 0.005 - Metropolitan Water Reclamation District 0.444 0.419 0.415 0.401 0.371 0.361 0.347 0.315 0.284 0.263 North Shore Mosquito Abatement District 0.011 0.011 0.011 0.010 0.009 0.009 0.008 0.008 0.009 0.008 Evanston Township 0.072 0.072 0.077 0.064 0.062 0.065 0.056 0.055 0.058 0.050 Community College 535 0.205 0.203 0.213 0.186 0.179 0.186 0.161 0.158 0.166 0.141 School District 202 2.905 2.865 2.977 2.469 2.349 2.444 2.078 2.023 2.099 1.750 School District 65 4.126 4.073 4.232 3.516 3.343 3.475 2.978 2.890 3.045 2.535 Total tax rate for property not in park district or special service district 10.642 10.532 10.859 9.126 8.680 8.960 7.810 7.552 7.750 6.541 Percent of total tax rate levied by City of Evanston 17.7% 18.4% 18.7% 17.8% 18.5% 19.0% 19.6% 19.7% 19.7% 19.6% Source: Cook County Assessor's office Government Unit -175- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Type of Customer Residential 2,875,669 2,842,137 2,711,271 2,734,202 2,639,717 2,506,887 2,720,807 2,388,360 2,375,942 2,260,284 Industrial 42,440 42,748 41,895 37,076 36,015 22,010 20,096 16,307 16,579 15,722 Commercial 1,306,272 1,252,818 1,337,280 1,395,576 1,415,895 1,318,236 1,267,657 1,278,334 1,240,591 1,193,241 Government 97,565 101,021 113,349 112,007 90,908 86,096 109,121 96,777 100,278 89,420 Total 4,321,946 4,238,724 4,203,795 4,278,861 4,182,535 3,933,229 4,117,681 3,779,778 3,733,390 3,558,667 Total direct rate per 100 cubic feet 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.47$ 1.52$ 1.52$ Source: City Water department CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (in 100 cubic feet) -176- CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Type of Customer Evanston residents/businesses 6,774,380$ 6,811,100$ 6,606,091$ 6,711,004$ 6,665,158$ 6,559,026$ 6,706,644$ 5,804,517$ 6,012,643$ 5,430,019$ Village of Skokie 2,908,102 2,918,766 2,859,685 3,011,018 2,959,732 2,802,720 3,018,734 2,891,834 3,158,396 2,689,304 Northwest Water Commission 3,367,773 3,283,048 3,247,291 3,434,685 3,367,253 3,377,407 3,750,200 3,497,989 3,620,878 4,820,074 Total $13,050,255 $13,012,914 $12,713,067 $13,156,707 $12,992,143 $12,739,153 $13,475,578 $12,194,340 12,791,917$ 12,939,397$ Source: City Water department -177- CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Function/Program Police Violent Offenses 349 393 270 314 293 266 226 224 282 299 Property Offenses 4,819 4,858 4,174 4,122 3,318 3,145 2,965 2,942 2,825 2,739 911 Calls Received 27,893 29,052 37,201 55,125 55,383 56,650 56,650 55,795 59,135 56,717 Fire Emergency responses 7,432 7,566 7,925 8,003 8,106 7,624 8,135 8,173 8,517 9,134 Fires extinguished 259 247 227 218 225 199 287 220 192 185 Inspections 2,600 - 2,940 3,071 2,664 2,194 1,496 1,320 1,050 1,810 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 3.3 Parks and Recreation Athletic field usage (hours)unavailable unavailable unavailable unavailable unavailable unavailable unavailable 15,561 15,165 17,121 Picnic permits issued unavailable unavailable unavailable unavailable unavailable unavailable unavailable 319 373 403 Library Volumes in collection 437,104 455,481 463,263 477,768 491,064 520,458 486,031 495,575 458,017 502,019 Total volumes borrowed 858,343 839,701 878,990 887,773 868,837 880,561 893,841 897,141 867,743 945,952 Water New connections 44 55 68 47 70 59 74 104 61 57 Water main breaks 59 53 34 65 41 45 78 48 36 52 Average daily consumption (millions of gallons)50.33 47.16 37.16 36.22 37.74 37.31 41.44 41.41 42.91 40.09 Peak daily consumption (millions of gallons)80.74 69.12 75.50 75.50 73.17 60.98 80.46 66.49 66.00 65.40 Source: Various City departments Note: Indicators are not available for general government functions Calendar Year -178- CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Function/Program Police Number of Stations 1 1 1 1 1 1 1 1 1 1 Budgeted Sworn Officers 162 162 161 161 161 161 161 162 162 165 Fire Stations 5 5 5 5 5 5 5 5 5 5 Other Public Works Streets (miles)147.0 147.0 147.0 147.0 147.0 147.0 147.0 147.0 147 147 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)159.0 159.0 159.0 159.0 159.0 159.0 159.0 159.0 157 157 Fire hydrants 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,370 1,370 Storage capacity (millions of gallons)22 22 22 22 22 22 22 22 22 22 Source: Various City departments Note: No capital asset indicators are available for the geveral government or library function Calendar Year -179- TAX INCREMENT FINANCING DISTRICT REQUIREMENTS -180-