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HomeMy WebLinkAbout2006-2007 Annual Comprehensive Financial ReportCITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED FEBRUARY 28, 2007 Prepared by Finance Department Matthew A. Grady III Finance Director and Comptroller This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Table of Contents INTRODUCTORY SECTION PAGE Principal Officials v Organization Chart vi Letter of Transmittal vii Certificate of Achievement for Excellence in Financial Reporting xiv FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Statement of Net Assets 10 Statement of Activities 12 Governmental Funds Balance Sheet 14 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances 15 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16 Proprietary Funds Statement of Net Assets 17 Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 19 Proprietary Funds Statement of Cash Flows 20 Fiduciary Funds - Statement of Net Assets 22 Fiduciary Funds - Pension Trust Funds - Statement of Changes in Plan Net Assets 23 Notes to the Financial Statements Index for Notes to the Financial Statements Notes to the Financial Statements 24 27 REOUIRED SUPPLEMENTARY INFORMATION Firefighters' Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund - Schedules of Funding Progress 86 Firefighters' and Police Pension Funds - Schedules of Employer Contribution 87 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 88 CITY OF EVANSTON, ILLINOIS Table of Contents FINANCIAL SECTION (Continued) PAGE Notes to the Required Supplementary Information Digest of Changes - IMRF 89 Conversion from GAAP basis to Budgetary basis 89 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 90 Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 95 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 100 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 107 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 109 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 110 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 1 I 1 Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 112 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 113 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 114 Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 117 CITY OF EVANSTON, ILLINOIS Table of Contents COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) PAGE Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 118 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 119 DEBT SERVICE FUNDS All Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) 120 PROPRIETARY FUND TYPES Nonmajor Proprietary Funds Statement of Net Assets 122 Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 124 Nonmajor Proprietary Funds Statement of Cash Flows 125 WATER FUND Schedule of Net Assets 127 Schedule of Changes in Net Assets - Reserved - Restricted Accounts 129 Operation and Maintenance Account - Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual 130 Operation and Maintenance Account - Schedule of Operating Revenues Budget and Actual 131 INTERNAL SERVICE FUNDS All Funds Statement of Net Assets 132 Combining Statement of Revenues, Expenses, and Changes in Net Assets 133 Combining Statement of Cash Flows 134 AGENCY FUNDS Special Assessment Agency Fund Statement of changes of Assets and Liabilities 136 This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Table of Contents COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) PAGE STATISTICAL SECTION (UNAUDITED) Net Assets by Component 137 Changes in Net Assets 138 Fund Balances - Governmental Funds 139 Changes in Fund Balances - Governmental Funds 140 Assessed Value and Actual Valued of Taxable Property 141 Principal Property Tax Payers 142 Property Tax Levies and Collections (City) - Last Ten Levy Years 143 Ratio of General Debt Outstanding 144 Direct and Overlapping Governmental Activities 145 Pledged - Revenue Coverage 146 Demographic Statistics - Last Ten Fiscal Years 147 Principal Employers 148 Full -Time Equivalent City Government Employees by Function 149 Property Tax Rates per $100 - Direct and Overlapping Governments 150 Water Sold by Type of Customer (in 100 cubic feet) 151 Water Sold by major Customers 152 Operating Indicators by Function/Program 153 Capital Assets Statistics by Function 154 TAX INCREMENT FINANCING DISTRICT REQUIREMENTS Independent Accountants' Report on Compliance - Tax Increment Financing Districts 155 iv This page has been intentionally left blank, INTRODUCTORY SECTION This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Principal Officials February 28, 2007 Cheryl Wollin Lionel Jean -Baptiste Melissa A. Wynne Steven J. Bernstein LEGISLATIVE CITY COUNCIL Lorraine H. Morton, Mayor EXECUTIVE Julia A. Carroll, City Manager FINANCE DEPARTMENT Matthew A. Grady III, Finance Director and Comptroller Steven Drazner, Assistant Finance Director Patricia P. Ford, Payroll Manager Jewell Jackson, Purchasing Manager Kevin Lookis, Revenue Manager Delores A. Holmes Edmund B. Moran, Jr. Elizabeth B. Tisdahl Ann Rainey Anjana Hansen ADVISORY BOARDS AND COMMISSIONS CITY OF EVANSTON ORGANIZATION CHART EFFECTIVE AS OF AUGUST 27, 2007 1 RESIDENTS MAYOR CITY COUNCIL CITY MANAGER I CITY CLERK FINANCE I I PUBLIC WORKS I LAW I I HUMAN RESOURCES I COMMUNITY DEVELOPMENT HEALTH AND HUMAN SERVICES FIRE POLICE LIBRARY RECREATION, PARKS AND FORESTRY VI Ciry of Evanston August 27, 2007 The Honorable Mayor Lorraine H. Morton, Members of the City Council City of Evanston, Illinois INTRODUCTION 2100 Ridge Avenue Evanston, Illinois 60201-2798 847.328.2100 847.328.4080 The Comprehensive Annual Financial Report (CAFR) of the City of Evanston (City) for the fiscal year ended February 28, 2007 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 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. vii This report includes all the funds and capital assets of the City and its component unit, The Town of Evanston. The Township Board of Trustees are 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 Virchow Krause, 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, 2007, 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, 2007, 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. Evanston is contiguous to Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It also 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. viii 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. There are 8,000 undergraduate students on the Northwestern campus in Evanston. About 4,000 students live in university housing; another 900 live in fraternities and sororities and remaining 3,100 live off campuses. They also have about 3,400 graduate students of which 600 live in two graduate student - housing complexes and approximately 2,800 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 ten 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, refuse 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. 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 by December 315` 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 (four Saturday morning public hearings were held prior to adoption of the 2007/08 budget) 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 ix are levied; 2) debt service payments are budgeted upon tax levy for such purposes, and 3) 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 2007/2008, the City projects that 46.12% ($86.8 million) of all City expenditures will occur in the General Fund. Other major funds include the Washington National Tax Increment District Fund, the Water Fund, and the Sewer Fund. 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). 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. For every major expenditure, a purchase order is prepared and approved and the related appropriation is encumbered before a check is issued. MAJOR INITIATIVES The City has been involved in a variety of projects throughout the year which reflect the City's commitment to ensuring that its citizens are able to experience a high quality of life in both work and play. The most significant of these projects are briefly described below: The City Council unanimously approved the Evanston Strategic Plan on March 27, 2006 with a May 1, 2006 implementation date. Thirteen goals were developed that support the community's values. Some of the notable successes over the past year are detailed below. x The Community Development department completed a survey of new downtown residents. A Historic Resources Survey of 150 buildings was completed by Community Development. A Business Retention Program was implemented by the City Manager and Community Development staff. Twenty-one business and commercial sites were visited. Information Systems began implementation of a computerized tracking system of all development projects. This will allow the tracking of Community Development projects from inception (i.e. zoning analysis or planned developments) through permitting, inspections, occupancy certificates and document storage of records (Accela Software Solution). Expected completion date is December 31, 2007. A comprehensive inclusionary and affordable housing policy was approved by the City Council. To date 36 households have been assisted. The Sherman Plaza redevelopment project has 160,000 square feet of new retail, 90% of which had already been leased. The City owns the attached 1,600 space parking garage which opened in July, 2006. Condo occupancy as of August 2007 is at 98%. The City of Evanston's Finance Department refunded bonds on December 19, 2006 for a total debt service savings of $750,000 in the first of two transactions that will reduce City debt payouts by over $1.2 million. Parks/Forestry and Recreation received the following grants. From the Illinois Arts Council, Local Arts Agency Program grant and Community Arts Access grant; Summer Food Program grant from the U.S. Department of Agriculture, an Illinois Department of Commerce & Economic Opportunity grant to renovate basketball and tennis courts, an award from Illinois Transportation Enhancement Program for improvements of the lakefront bike path and a Community Development Block Grant for renovations of Smith Park. Expanded online registration options in the Parks/Forestry and Recreation Department became available in August 2006. Feed back from residents has been overwhelmingly positive. Nearly 15%, high percentages for a first year, of registrations were completed online. Parks/Forestry and Recreation experienced a total enrollment increase of 11% in its Special Recreation programs. The Department of Health and Human Services began posting all restaurant inspections on line thru the City's website. Residents can now check out the latest inspection results for all of the community's food establishments. The website receives hundreds of hits a month. As part of the City's Emergency Preparedness Plan, the Department of Health and Human Services created a Medical Reserve Corps (MRC). This group is comprised of medical professionals who work or reside in Evanston and are willing to assist the City in an emergency (accident, bioterrorist attack, outbreak of infectious disease). xi As part of the City's green initiatives, The Health and Human Services Department sponsored a lawn mower and gas can turn in day. The residents who turned in these items received plastic gas cans and coupons redeemable for electric mowers. The city also hired a new Sustainability Coordinator paid for by a grant through IL Department of Commerce and Economic Opportunities for 2006-07 The upgrading of McCormick Boulevard was an example of sustainable practices. The conversion of the lanes to a new configuration reduces the impact on trees and increases the safety from opposing traffic. The recycling of the existing concrete base into subgrade aggregate material saved the City over $250,000 in material and transportation costs. The City is nearing the completion of the $200 million Long Range Sewer Improvement Program. The improvements have included the installation of a new relief sewer system and substantial renovations to the existing combined sewer system. These major improvements to the sewer system are designed to eliminate basement sewer backups and mitigate the street flooding that has historically plagued the area. The final phase of construction is now underway with completion scheduled for 2009. Most of these improvements have been funded with low interest Illinois Environmental Protection Agency loans. FACTORS AFFECTING FINANCIAL CONDITION The following are factors which give a broader context to the financial information contained in this CAFR report. Local Economy: At the local level we are experiencing a minor slow down in certain segments of the housing market, but retail sales are steady. Retail sales should remain strong with the opening of the shops of Sherman Plaza and the strength of our "big box" chains. Several of our major office and retail centers have either been sold or taken on new partners which indicate a strong interest in the Evanston market. The City has a five-year Capital Improvements Program, with planned improvements of $277,702,074 over five years. Risk Management: The City has changed its management approach to risk management and has in place third -party administration of its liability and workers' compensation claims. Additionally, more staff and resources are being dedicated to internal risk management. The City has also settled the majority of its largest outstanding lawsuits from previous years and liability estimates are currently very low. 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 xii through a state-wide plan managed by the Illinois Municipal Retirement Plan (IMRF). The City has fully funded this plan. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended February 28, 2006. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated budget dated March 1, 2006. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including policy documentation, financial planning, and organization. We acknowledge the contributions of Steven Drazner, the newly hired Assistant Finance Director and the excellent work of the Accounting Manager, Remy Navarrete, and the Accounting Division staff in preparing the financial statements. Appreciation is also extended to the entire staff of all accountants and fiscal staff within the City's Finance Department including the recently consolidated Budget Division and the Fiscal staff at each of our component units whose professionalism, dedication and efficiency contributed to the preparation of this report. Also thanks to the Mayor's Office and members of City Council for their interest and support in planning and conducting the City's financial affairs. Respectfully submitted, CA4, a. a A. Carroll ty Manager Matth A. Grady, III Finance Director and Comptroller This page has been intentionally left blank. Certificate of Achievement for Excellence in Financial Reporting Presented to City of Evanston Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended February 28, 2006 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. ��a10E OFpk�� � u�atrosuns � s A u""0A President MORAIM SFAL Executive Director xiv This page has been intentionally left blank. FINANCIAL SECTION This page has been intentionally left blank. INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS This page has been intentionally left blank. R VirchowKrause &company INDEPENDENT AUDITORS' REPORT To Honorable Lorraine H. Morton, Mayor and Members of the City Council Evanston, Illinois We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Evanston, Illinois, as of and for the year ended February 28, 2007, which collectively comprise City of Evanston's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Evanston's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements the Township of Evanston, which represent 0.8 percent, 0.5 percent, and 1.0 percent, respectively, of the assets, net assets, and revenues of the governmental activities and 0.8 percent, 0.5 percent, and 1.8 percent, respectively, of the assets, fund balances, and revenues of the aggregate remaining fund information. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Township of Evanston, is based on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditino Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. The financial statements of the Township of Evanston were not audited in accordance with Government Auditinq Standards. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provides a reasonable basis for our opinions. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Evanston, Illinois as of February 28, 2007, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditina Standards, we have also issued a report dated August 27, 2007 on our consideration of City of Evanston's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Virchow, Krause & Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International To Honorable Lorraine H. Morton, Mayor and Members of the City Council Evanston, Illinois The management's discussion and analysis, the historical pension information and the budgetary comparison schedules as listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Evanston's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements and, in our opinion, based on our audit and the report of other auditors, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Other auditors previously audited, in accordance with auditing standards generally accepted in the United States of America, the City of Evanston's basic financial statements for the year ended February 28, 2006, which are not presented with the accompanying financial statements. In their report dated August 4, 2006, they expressed unqualified opinions on the respective financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the primary government of the City of Evanston, Illinois. In their opinion, the 2006 amounts reported in the schedules are fairly stated in all material respects in relation to the basic financial statements for the year ended February 28, 2006, taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Oak Brook, Illinois August 27, 2007 -2- MANAGEMENT'S DISCUSSION AND ANALYSIS FEBRUARY 28, 2007 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 vii of this report. FINANCIAL HIGHLIGHTS A. The City's net assets increased by $13,730,744 (or 5.62%) from the prior fiscal year reported (FY 2006). The governmental net assets increased by $5,334,267 (or 6.59% from Fy 2006) and the business -type activities net assets increased by $8.396.477 (or 5.15% from FY 2006). B. The governmental activities revenue increased by $1,584,738 (or 1.25%) from the prior year. The expenditures increased by $4,668,806 (or 3.97%). C. The business -type activities revenue decreased by $1,890,235 (or 5.32%). The expenditures increased by $1,872,931 (or 7.81 %) from the prior year. D. The total cost of all City programs increased by $6,541,727 or 4.62%. E. The City of Evanston issued new debt in the amount of $24,720,000 during the current fiscal year. Of this amount, $13,750,000 was used to partially refund previous issues and the balance used to fund various capital improvement projects. USING THIS ANNUAL REPORT 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. REPORTING THE CITY AS A WHOLE Government -wide Financial Statements The City's annual report includes two government -wide financial statements. These statements provide both long- -3- 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. The government -wide financial statements are presented on pages 10 - 13 of this report. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The City uses funds to ensure and demonstrate compliance with finance -related laws and regulations. Within the basic financial statements, fund financial statements focus on the City's most significant funds, rather than the City as a whole. Major funds are separately reported, while all others are combined into a single, aggregated presentation. Individual fund data for nonmajor funds is provided in the form of combining schedules in a later section of this report. The City has three kinds of funds: Governmentalfinds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government -wide financial statements. However, the focus is very different with fund statements, providing a distinctive view of the City's governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near -term. Since the government -wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of the short-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. -4- 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 14 - 15 of this report. Proprietary fiends 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 17 - 21 of this report. Fiduciary fitnds 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 22 - 23 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 27 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 86 - 89 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 90. Additional information on capital assets and long-term debt can be found on page 48 and 59 respectively. -5- Financial Analysis of the City as a Whole The City's combined net assets increased by $13,730,744 from FY 2006 - an increase from $244,019,419 to $257,750,163 Current and Other Assets Capital Assets Total Assets Long -Term Liabilities Other Liabilities Total Liabilities Net Assets Investment in Capital assets, net of Debt Restricted Unrestricted Total Net Assets STATEMENT OF NET ASSETS Governmental Activities 2007 2006 $127,933,655 $132,931,957 141,126,725 177,431,799 269,060,380 310,363,756 128, 384,631 132, 862,214 54,337,685 96,497,745 182,722,316 229,359,959 Business -type Activities 2007 2006 $36,047,607 $39,038,968 320,029,048 271,180,593 356,076,655 310,219,561 156,668,520 119,708,579 27,996,036 27,495,360 184,664,556 147,203,939 31,132,837 34,426,799 140,621,172 128,692,273 27,444,436 33,745,651 9,373,730 10,449,106 27,760,791 12,831,347 21,417,197 23,874,243 $86,338,064 $81,003,797 $171,412,099 $163,015,622 Total Primary Government 2007 2006 $163,981,262 $171,970,925 461,155,773 448,612,392 625,137,035 620,583,317 285,053,151 252,570,793 82,333,721 123,993,105 367,386,872 376,563,898 171,754,009 163,119,072 36,818,166 44,194,757 49,177,988 36,705,590 $257,750,163 $244,019,419 1 The City's total revenues decreased by $305,497 or .2%. The City's total expenditures for all programs increased by $6,541,727. Governmental activity total revenue increased slightly due to an increase in tax receipts and investment income over the prior year which was somewhat offset by a reduction in capital grant revenue. Expenditures in the governmental activities also increased from the prior year in a greater amount than the increase of revenues. Expenditure increases were primarily due to increased costs incurred by public works followed by increases from Departments Housing and Economic Development as well as interest expense. The revenue for business -type funds remained fairly constant from the prior year while the increase in expenditures was primarily due to the operations of the new Sherman garage fund. Governmental Funds: The governmental activities experienced a net increase of $5,334,267. This was mainly due to a an increase in various tax revenues and investment income as well as a sharp decrease in transfers out to business -type activity Funds. Business Funds: The business -type activity funds experienced an increase in net assets of $8,396,477. While the overall increase in net assets for business -type funds continues as in previous years, the increase itself is nevertheless materially less than from the prior year. For the most part, expenditures in these funds remained constant from the prior year, excluding an increase due to the necessity of operating the new Sherman Garage. Revenues for these Funds, specifically the Water & Sewer Funds, decreased from the prior year, as did the amount transferred from the Governmental Funds. This decrease in revenues in the Water & Sewer Funds can best be attributed to the cooler and wetter than average summer season allowing for less water usage. 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 2007 2006 2007 2006 2007 2006 Revenue Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues: Sales taxes Property taxes Utility taxes Other taxes Investment income Total Revenue Expenses General management and support Public safety Public works Health and human resources development Recreation and cultural opportunities Housing and economic development Interest Water Sewer Sherman garage Maple avenue garage Motor vehicle parking system "total Expense Increase in net assets before transfer 'transfers Increase in net assets Net Assets - Beginning Net Assets - Ending $26,762,844 $27,663,692 $32,288,616 $34,626,625 $59,051,460 $62,290,317 3,678,555 3,440,889 3,678,555 3,440,889 185,076 1,126,610 185,076 1,126,610 14,386,432 14,096,471 14,386,432 14,096,471 61,982,603 46,177,463 61,982,603 46,177,463 8,108,008 8,858,217 8,108,008 8,858,217 9,179,229 22,090,240 9,179,229 22,090,240 3,752,377 2,996,804 1,344,020 896,246 5,096,397 3,893,050 128,035,124 126,450,386 33,632,636 35,522,871 161,667,760 161,973,257 19,950,558 19,536,566 19,950,558 19,536,566 46,368,286 45,950,611 46,368,286 45,950,611 16,504,737 14,631,723 16,504,737 14,631,723 6,107,514 4,781,198 6,107,514 4,781,198 18,303,273 19,791,683 18,303,273 19,791,683 7,924,011 6,850,300 7,924,011 6,850,300 6,926,538 5,874,030 6,926,538 5,874,030 8,778,360 8,759,592 8,778,360 8,759,592 9,587,903 9,219,174 9,587,903 9,219,174 1,613,186 0 1,613,186 0 2,910,151 3,096,444 2,910,151 3,096,444 0 2,962,499 2,903,968 2,962,499 2,903,968 122,084,917 117,416,111 25,852,099 23,979,178 147,937,016 141,395,289 5,950,207 9,034,275 7,780,537 11,543,693 13,730,744 20,577,968 (615,940) (4,277,751) 615,940 4,277,751 5,334,267 4,756,524 8,396,477 15,821,444 13,730,744 20,577,968 81,003,797 76,247,273 163,015,622 147,194,178 244,019,419 223,441,451 $86,338,064 $81,003,797 $171,412,099 $163,015,622 $257,750,163 $244,019,419 -7- Financial Analysis of the City's Funds Governmental Funds As discussed, governmental funds are reported in the fund statement with a short-term, inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. Governmental funds reported ending fund balances of $87,486,477 as a year-end total, including $25,026,681 unrestricted, indicating availability for continuing City service requirements. Reserved fund balances in the General Fund total $1,327,291 and Unreserved designated fund balances total $5,426,091 including $2,590,000 for IMRF, $2,576,360 for Compensated absences and $259,731 for Capital projects. 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 increased by $1,361,611. Some revenues which came in greater than anticipated worth mentioning are real estate transfer tax, poured liquor tax, sales tax, state income tax, ambulance fees and various other charges for service fees. Revenue sources which missed expectations (budget) by a material amount include utility taxes, cigarette tax, various State/County grants, and fines. Combined Non -Major Governmental Funds Combined non -major fund balances totaled $61,293,312, a decrease of $9,510,509 from prior year of $70,803,821. For comparison purposes, it is important to note that the Washington National TIF was included as a major fund in the prior year and a non -major fund this reporting year. Therefore, excluding the Washington National TIF, there was a decrease of $2,367,414 from the prior year. The funds which contributed the greatest to the decrease in fund balances were the Motor Fuel Tax, Capital Improvement, Central Business Tax TIF, and Washington National TIF. Proprietary Funds The proprietary fund statements share the same focus as the government -wide statements, reporting both short-term and long-term information about financial status. The main proprietary funds operated by the City are the Water, Sewer, and Sherman Garage Funds, whereas the non -major proprietary funds include the Maple Garage and Parking Funds. The three major funds had a solid year financially with a total fund balance increase of $4,338,536. Although fund balances in these major proprietary funds showed a healthy increase, it is important to keep in mind that these funds carry a heavy debt load and therefore, large debt payments will be required in the future. The non -major proprietary Maple Garage and Motor Vehicle Parking Funds also had increases in fund balance as well, but the primary reason for the increase in Maple Garage was from a interfund transfer in from the Central Business TIF Fund. While the Parking System Fund is largely self supporting, the Maple Garage may require future fund transfers in from the Central Business TIF Fund to cover near term debt payments. Internal Service Funds The City's combined internal service funds net assets were $6,473,196 as of February 28, 2007. At March 1, 2006, the combined funds had a balance of $2,853,763. General Fund Budgetary Highlights The original budgets for the General Fund and other funds did not have to be amended this year. Actual expenditures in the General Fund were over budget primarily due to the Police and Fire Departments as well as Illinois Municipal Retirement Pension costs. Capital Assets The City established a policy of capitalizing equipment and vehicles with $20,000 or more in value and infrastructure and building improvements with $100,000 or more in value. The City's investment in capital assets, net of accumulated depreciation, for governmental and business -type activities, as of February 28, 2007, was $460,886,773. The total decrease in governmental funds capital assets was $36,305,074 while there was an increase of $48,579,455 for business - type activity capital assets. The overall percent increase in capital assets was 2.7% for the City as a whole. Major capital asset events during the current fiscal year included continued construction of the downtown revitalization projects. Readers desiring more detailed information on capital asset activity should see Note 6 in the Notes to the Financial Statements. Long -Term Debt At the end of the fiscal year, the City had total bonded debt outstanding of $187,745,000. The other major component of $96,780,000 supported by pledged revenues generated primarily by the business -type activities of the City and City's five Tax Increment Financing (TIF) Districts. During the current year, the City issued $24.72 million in fixed rate general obligation bonds for various City projects, including a partial refunding of series 2002C and 2003B bonds totaling $13,750,000. 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. Bond Ratings The City's general obligation bonds are rated Aaa and VIMG-1 by Moody's Investor Rating Service and AAA by Fitch Ratings. Evanston City Water Fund revenue bonds are rated Aal and AA for uninsured issues. The Aaa and AAA rating were confirmed during the year for the Series 2005 bond issue which was for capital improvements and construction of the Sherman Plaza garage project. Economic Factors 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. Sales taxes, the best indicator of economic health, came in slightly over budget. Most other major revenues came in at or above budgeted levels, with telecommunications as an exception. The unemployment rate in Evanston is consistent with that of surrounding communities and at or below the State average. 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 overall state of the economy may play less of a role related to employment as compared to communities containing a larger number of for -profit businesses. The Water & Sewer Funds generated a combined $16,485,455 in cash from normal operating activities during the fiscal year. Although this may appear to be a sizable amount of cash, one must realize that these funds carry high debt levels and debt payments require use of most of this operating cash inflow. This debt was issued and necessary to fund for the completion of an overhaul of the City's sewer system. 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.citvofevanston.ore. This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Statement of Net Assets February 28, 2007 Assets Cash and equivalents Investments Receivables (net, where applicable, of allowances for uncollectibles) Property taxes Accounts Loan Notes Special assessments Accrued interest Other Due from other governments Due from other agency Internal balances Inventories Restricted assets Cash and equivalents and investments Capital assets Capital assets not being depreciated Construction in progress Capital assets (net of accumulated depreciation) Other assets Total Assets $ The accompanying notes are an integral part of this statement. Primary Government Governmental Business -type Activities Activities Total 58,336,470 $ 5,927,736 $ 64,264,206 12,160,809 3,153,635 15,314,444 41,918,202 - 41,918,202 - 4,357,429 4,357,429 - 5,082,571 5,082,571 5,543,739 - 5,543,739 906,547 - 906,547 141,040 157,934 298,974 2,518,430 57,464 2,575,894 6,077,256 - 6,077,256 5,575 - 5,575 (29,372) 29,372 - 354,959 899,576 1,254,535 - 16,381,890 16,381,890 25,252,516 3,297,937 28,550,453 1,586,104 6,241,742 7,827,846 114,288,105 310,220,369 424,508,474 - 269,000 269,000 269,060,380 356,076,655 625,137,035 -10- Liabilities Vouchers payable Accrued payroll Interest payable Other payables Due to other governments Due to pension funds Payable from restricted assets Vouchers payable Interest payable Unearned revenues Noncurrent liabilities Payable from restricted assets - due within one year Due within one year Due in more than one year Total Liabilities Net Assets Investment in capital assets, net of related debt Restricted Culture and recreation Debt service Other Unrestricted Total Net Assets $ Primary Government Governmental Business -type Activities Activities Total 4,455,567 $ 971,678 $ 5,427,245 1,549,376 117,059 1,666,435 - 41,324 41,324 130,361 - 130,361 441,099 - 441,099 2,821,242 - 2,821,242 - 2,378,681 2,378,681 - 1,027,165 1,027,165 25,430,044 - 25,430,044 - 8,855,296 8,855,296 23,339,186 45,652,648 68,991,834 124,555,441 125,620,705 250,176,146 182,722,316 184,664,556 367,386,872 31,132,837 140,621,172 171,754,009 991,431 - 991,431 26,197,533 9,373,730 35,571,263 255,472 - 255,472 27,760,791 21,417,197 49,177,988 86,338,064 $ 171,412,099 $ 257,750,163 - 11 - CITY OF EVANSTON, ILLINOIS Statement of Activities Year ended February 28, 2007 Functions/Prop-rams Governmental activities: General management and support Public safety Public works Health and human resource development Recreation and cultural opportunities Housing and economic development Interest Total governmental activities Business -type activities: Water Sewer Sherman garage Maple avenue garage Motor vehicle parking system Total business -type activities Total primary government The accompanying notes are an integral part of this statement. Program Revenues Operating Charges for Grants and Expenses Services Contributions S 19,950,558 $ 13,630,360 $ 103,964 46,368,286 353,682 91,572 16,504,737 170,254 2,232,092 6,107,514 1,259,298 1,215,897 18,303,273 4,352,943 35,030 7,924,011 6,996,307 - 6,926,538 - - 122,084,917 26,762,844 3,678,555 8,778,360 12,639,143 - 9,587,903 14,394,268 - 1,613,186 779,150 - 2,910,151 1,417,468 - 2,962,499 3,058,587 - 25,852,099 32,288,616 - 5 147,937,016 $ 59,051,460 $ 3,678,555 General revenues: Property tax Personal property replacement tax Sales and home rule tax Income tax Utility tax Gain on sale of capital assets Miscellaneous Investment income Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending -12- Net (Expense) Revenue and Changes in Net Assets Capital Grants and Governmental Business -type Contributions Activities Activities Total 163,957 $ (6,052,277) $ - $ (6,052,277) - (45,923,032) (45,923,032) - (14,102,391) - (14,102,391) 21,119 (3,611,200) - (3,611,200) - (13,915,300) - (13,915,300) - (927,704) - (927,704) - (6,926,538) - (6,926,538) 185,076 (91,458,442) - (91,458,442) - - 3,860,783 3,860,783 - - 4,806,365 4,806,365 - - (834,036) (834,036) - - (1,492,683) (1,492,683) - - 96,088 96,088 - - 6,436,517 6,436,517 185,076 (91,458,442) 6,436,517 (85,021,925) 61,982,603 - 61,982,603 1,379,509 - 1,379,509 14,386,432 - 14,386,432 6,186,428 - 6,186,428 8,108,008 - 8,108,008 62,901 - 62,901 1,550,391 - 1,550,391 3,752,377 1,344,020 5,096,397 (615,940) 615,940 - 96,792,709 1,959,960 98,752,669 5,334,267 8,396,477 13,730,744 $1,003,797 163,015,622 244,019,419 $ 86,338,064 $ 171,412,099 $ 257,750,163 -13- CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet February 28, 2007 Assets Nonmajor Total Governmental Governmental General Funds Funds Cash and equivalents $ 15,861,003 $ 42,110,619 $ 57,971,622 Investments 1,000,000 6,332,934 7,332,934 Receivables Property taxes (net of allowance) 15,326,039 26,592,163 41,918,202 Notes (net of allowance) - 5,543,739 5,543,739 Special assessments - 906,547 906,547 Accrued interest 11,290 129,750 141,040 Other 2,105,915 349,014 2,454,929 Due from other governments 5,817,766 259,490 6,077,256 Due from other funds 97,762 99,542 197,304 Total Assets $ 40,219,775 $ 82,323,798 $ 122,543,573 Liabilities and Fund Balances Liabilities Vouchers payable $ 2,762,061 $ 1,484,310 $ 4,246,371 Accrued payroll 1,504,581 16,106 1,520,687 Compensated absences payable 162,370 - 162,370 Other 127,220 3,141 130,361 Due to other governments 22,902 418,197 441,099 Due to other funds 10,285 3,115,879 3,126,164 Unearned revenues 9,437,191 15,992,853 25,430,044 Total Liabilities 14,026,610 21,030,486 35,057,096 Fund Balances Reserved 1,327,291 31,741,272 33,068,563 Unreserved designated 5,426,091 - 5,426,091 Unreserved Capital project funds - 23,965,142 23,965,142 Special revenue funds - 5,586,898 5,586,898 General fund 19,439,783 - 19,439,783 Total Fund Balances 26,193,165 61,293,312 87,486,477 Total Liabilities and Fund Balances $ 40,219,775 $ 82,323,798 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. 134,330,975 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. (141,952,584) The net assets of the internal service fund are included in the governmental activities in the statement of net assets. 6,473,196 Net assets of governmental activities $ 86,338,064 The accompanying notes are an integral part of this statement. -14- CITY Or EVANSTON, ILLINOIS Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Year ended February 28, 2007 Nonmajor Total Governmental Governmental General Funds Funds Revenues Taxes $ 42,264,921 $ 34,871,526 $ 77,136,447 Licenses and permits 8,060,996 - 8,060,996 Special assessments - 565,204 565,204 Intergovernmental 16,338,153 5,063,835 21,401,988 Charges for services 7,167,364 - 7,167,364 Fines and forfeits 4,029,228 - 4,029,228 Investment income 777,165 2,917,869 3,695,034 Miscellaneous 4,949,769 627,800 5,577,569 Total Revenues 83,597,596 44,046,234 127,633,830 Expenditures Current General management and support 12,829,182 1,709,848 14,539,030 Public safety 30,272,639 9,416,912 39,689,551 Public works 12,436,547 1,845,900 14,282,447 Health and human resource development 5,049,621 800,000 5,849,621 Recreation and cultural opportunities 16,681,579 1,000 16,682,579 Housing and economic development 3,093,676 4,589,821 7,683,497 Pensions 5,645,241 - 5,645,241 Debt service Principal - 11,530,000 11,530,000 Interest - 6,926,538 6,926,538 Fiscal agent fees - 516,861 516,861 Capital outlay - 18,986,145 18,986,145 Total Expenditures 86,008,485 56,323,025 142,331,510 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,420,889) (12,276,791) (14,697,680) Other Financing Sources (Uses) Transfers in 4,257,500 2,071,308 6,328,808 Transfers out (475,000) (9,853,036) (10,328,036) Issuance of debt - 24,720,000 24,720,000 Premiums and discounts - 195,693 195,693 Escrow funding - (14,367,683) (14,367,683) Total Other Financing Sources (Uses) 3,782,500 2,766,282 6,548,782 Net Change in Fund Balances 1,361,611 (9,510,509) (8,148,898) Fund Balances -Beginning of Year 24,831,554 70,803,921 95,635,375 Fund Balances - End of Year $ 26,193,165 $ 61,293,312 $ 87,486,477 The accompanying notes are an integral part of this statement. -15- This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended February 28, 2007 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ (8,148,898) 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. 12,472,985 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. 25,280,000 Issuance of 2006 and 2006B 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. 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. (24,915,693) Governmental funds expend current financial resources in the acquisition of capital assets. A portion of an asset and related debt was transferred to a proprietary fund. The net effect of this transfer of assets was a decrease of governmental activities. (1,221,112) 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, (1,752,448) Internal service funds are reported separately in the fund financial statements. 3,619,433 Change in net assets of governmental activities $ 5,334,267 The accompanying notes are an integral part of this statement. -96- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Net Assets February 28, 2007 Business -type Activities- Enterprise Funds Governmental Activities- Nonmajor Internal Sherman Proprietary Service Water Sewer Garage Funds Total Funds Assets Current Assets Cash and equivalents $ 103,565 $ - $ 1,809,935 $ 4,014,236 S 5,927,736 $ 364,848 Investments - - - 3,153,635 3,153,635 4,827,875 Restricted cash and equivalents and investments 179,521 6,594,984 - - 6,774,505 - Receivables Accounts - billed 1,067,139 200,269 - - 1,267,408 - Accounts - unbilled 875,241 2,214,780 - - 3,090,021 - Loan - 5,082,571 - 5,082,571 - Accrued interest 137,998 - - 19,936 157,934 - Other 55,862 150 4 1,448 57,464 63,501 Due from other funds I5,208 87,025 80 5,500 107,813 105,000 Inventories 544,075 355,501 - - 899,576 354,959 Total Current Assets 2,978,609 9,452,709 6,892,590 7,194,755 26,518,663 5,716,183 Noncurrent Assets Restricted cash and equivalents and investments 9,607,385 - - - 9,607,385 - Capital Assets Land 555,415 - 2,742,522 3,297,937 Construction in progress 455,211 5,786,531 - - 6,241,742 - Capital assets being depreciated 62,907,213 219,401,123 40,926,869 35,884,254 359,119,459 19,877,815 Less accumulated depreciation (15,453,066) (25,641,527) (765,276) (7,039,221) (48,899,090) (13,082,065) Total Capital Assets 48,464,773 199,546,127 40,161,593 31,587,555 319,760,048 6,795,750 Other Assets Receivables Notes - - - 269,000 269,000 - Total Noncurrent Assets 58,072,158 199,546,127 40,161,593 31,856,555 329,636,433 6,795,750 Total Assets 61,050,767 208,998,836 47,054,183 39,051,310 356,155,096 12,511,933 The accompanying notes are an integral part of this statement. -17- Liabilities Current Liabilities Vouchers payable Vouchers payable - restricted Accrued payroll Interest payable Interest payable - restricted Revenue bonds payable Revenue bonds payable - restricted Compensated absences payable General obligation bonds payable General obligation bonds payable - restrictei Unamortized bond expenses and discount Claims payable Notes payable - Sewer IEPA Loans - restrict Due to other funds Total Current Liabilities Long -Term Liabilities Notes payable - Sewer IEPA Loans General obligation bonds payable Revenue bonds payable Unamortized bond expenses and discount Claims payable Total Long -Term Liabilities Total Liabilities Net Assets Invested in capital assets, net of related debt Restricted for debt service Unrestricted Total net assets Business -type Activities- Enterprise Funds Governmental Activities- Nonmajor Internal Sherman Proprietary Service Water Sewer Garage Funds Totals Funds $ 361,865 S 295,758 $ 141,563 $ 172,492 $ 971,678 $ 209,196 77,235 2,301,446 - - 2,378,681 - 73,235 23,143 - 20,681 117,059 28,689 - - 41,324 41,324 21,453 1,005,712 - 1,027,165 404,167 - - 404,167 80,833 - - 80,833 - 431,005 83,468 - 71,133 585,606 83,473 - - 35,810,000 8,530,000 44,340,000 - - 2,155,000 - 2,155,000 - - - (10,376) (10,376) - - - - - 821,700 - 6,942,338 - 6,942,338 - 41,935 15,208 485 20,813 78,441 21,179 1,491,728 12,822,073 35,952,048 8,846,067 59,111,916 1,164,237 - 92,548,583 - - 92,548,583 - - 16,365,000 11,465,000 2,500,000 30,330,000 2,755,000 - - - 2,755,000 16,935 (19,437) (2,502) - - - - - - 4,874,500 2,771,935 108,894,146 11,465,000 2,500,000 125,631,081 4,874,500 4,263,663 121,716,219 47,417,048 11,346,067 184,742,997 6,038,737 45,612,005 81,554,643 (7,113,407) 20,567,931 140,621,172 6,795,750 9,373,730 - - - 9,373,730 - 1,801,369 5,727,974 6,750,542 7,137,312 21,417,197 (322,554) $ 56,787,104 $ 87,282,617 $ (362,865) $ 27,705,243 $ 171,412,099 $ 6,473,196 -18- This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Year ended February 28, 2007 Operating Revenues Charges for services Miscellaneous Total Operating Revenues Operating Expenses Excluding Depreciation Administration Operations Total Operating Expenses Excluding Depreciation Operating Income (Loss) Before Depreciation Depreciation Operating Income (Loss) Nonoperating Revenues (Expenses) Investment income Interest expense Bond expenses and amortization of discount Gain (loss) on disposition of assets Total Nonoperating Revenues (Expenses) Income (Loss) before transfers and contributions Capital Contribution - Governmental Activities Transfers In (Out) Central Business Tax Increment District Fund Insurance Fund Washington National Tax Increment District Fund Capital Improvement Fund Water Fund Sewer Fund Economic Development Fund General Fund Total Transfers In (Out) Change in Net Assets Total Net Assets - Beginning of Year Total Net Assets - End of Year The accompanying notes are an integral part of this statement Business -type Activities- Enterprise Funds Governmental Activities- Nonmajor Internal Sherman Proprietary Service Water Sewer Garage Funds Total Funds $ 12,194,340 $ 14,374,349 $ 779,150 $ 4,465,723 $ 31,813,562 $ 6,919,400 444,803 19,919 - 10,332 475,054 149,803 12,639,143 14,394,268 779,150 4,476,055 32,288,616 7,069,203 642,518 - - 1,096,420 1,738,938 6,257,545 2,587,322 847,910 3268,579 12.961.356 7,360,656 6,900,063 2,587,322 847,910 4,364,999 14,700,294 7,360,656 5,739,080 11,806,946 (68,760) 111,056 17,588,322 (291,453) 1,384,583 2,834,158 765,276 857,575 5,841,592 1,553,190 4,354,497 8,972,788 (834,036) (746,519) 11,746,730 (1,844,643) 557,799 474,454 9,231 302,536 1,344,020 57,343 (142,359) (3,812,641) - (639,053) (4,594,053) - 1,129 (5,982) (11,023) (15,876) - (4,684) - (4,684) 106,733 411,885 (3,344,169) 9,231 (347,540) (3,270,593) 164,076 4,766,382 5,628,619 (824,805) (1,094,059) 8,476,137 (1,680,567) 1,221,112 - 1.221.112 - 4,502,000 4,502,000 - (2,000,000) (3,000,000) - (5,000,000) (759,172) (759,172) 2,000,000 2,000,000 - - - 2,000,000 - - - 3,000,000 650,000 650,000 (2,693,600) - (2,693,600) 300,000 (2,693,600) (3,000,000) (759,172) 5,152,000 (1,300,772) 5,300,000 2,072,782 2,628,619 (362,865) 4,057,941 8,396,477 3,619,433 54,714,322 84,653,998 - 23,647,302 163,015,622 2,853,763 $ 56,787,104 $ 87,282,617 $ (362,865) $ 27,705,243 $ 171,412,099 $ 6,473,196 -19- CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Year ended February 28, 2007 Cash Flows from Operating Activities Receipts from customers and users Receipts from interfund services provided Payments to suppliers Payments to employees Payments for interfund services provided Net Cash Provided by (Used for) Operating Activities Cash Flows from Noncapital Financing Activities Transfers In (Out) Central Business Tax Increment District Fund Insurance Fund Washington National Tax Increment District Fund Capital Improvement Fund Water Fund Sewer Fund Economic Development Fund General Fund Net Cash Provided by (Used for) Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities Sale of capital assets Acquisition and construction of capital assets Principal paid on revenue bonds Interest paid on revenue bonds Principal paid on general obligation bonds Interest paid on general obligation bonds Principal paid on IEPA loans Interest paid on IEPA loans Proceeds from IEPA loans Net Cash (Used for) Capital and Related Financing Activities Cash Flows from Investing Activities Purchase of investments Interest income Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Equivalents Cash and Equivalents Beginning of year End of year Reconciliation Cash and equivalents Current Cash Restricted Current Cash Unrestricted Restricted Non Current Cash The accompanying notes are an integral part of this statement Business -type Activities- Enterprise Funds Governmental Activities- Nonmajor Internal Sherman Proprietary Service Water Sewer Garage Funds Total Funds $ 12,440,776 $ 14,677,501 $ 779,150 $ 4,531,890 32,429,317 $ 7,025,727 (1,862) (290,188) 405 54,500 (237,145) 176,650 (6,503,751) (2,312,124) (706,347) (3,323,730) (12,845,952) (4,649,952) (586,754) 10,343 (1,130,107) (1,706,518) (1,692,547) 7,705 7,705 963,945) (104,067) 5,348,409 12,085,532 73,208 140,258 17.647.407 4,502,000 4,502,000 (2,000,000) (3,000,000) (5,000,000) (759,172) (759,172) 2,000,000 2,000,000 650,000 650,000 ({2,693,600)) - (2,693,600) (2,693,600) (3,000,000) (759,172) 5,152,000 0.300,77_) (4,210,543) (9,029,484) 2,486,668 (470,000) (145,087) (2,050,000) (1,161,845) (6,408,292) (2,650,796) 4.498.539 - (4,825,630) (16,801.878) 2.486.668 (258,837) (11,012,196) (470,000) (145,087) (5,785,000) (7,835,000) (639,053) (1,800,898) (6,408,292) (2,650,796) 4.498,539 (6,682,890) (25.823,730) 2,000,000 3,000,000 300,000 5,30U,000 129,798 (1,294,308) (1,164,510) (3,857,343) 557,799 474,454 9,231 302,536 1,344,020 57,343 557,799 474,454 9,231 302,536 1344A20 (3,800,000) (1,613,022) (7,241,892) 1,809,935 (1,088,096) (8,133,075) 231,423 11,503,493 13,836,876 - 8,255,967 33,596,336 133,425 $ 9,890,471 $ 6,594M4 $ 1,809,935 $ 7.167,871 $ 25,463.261 $ 364,848 $ 103,565 $ $ 1,809,935 $ 4,014,236 $ 5,927,736 $ 364,848 179,521 6,594,984 - 6,774,505 - 3,153,635 3,153,635 9,607,385 - 9,607.385 - $ 9,890,471 $ 6,594.984 $ 1,809,935 S 7.167,871 S 25.463,261 $ 364,848 Continued t'dr1! CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Year ended February 28, 2007 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) Depreciation Changes in assets and liabilities Other receivables Accounts receivable Interfund receivable Inventories Accrued interest receivable Compensated absences Accrued payroll Interfund payable Vouchers payable Vouchers payable (restricted) Interest payable (restricted) Claims payable Net Cash Provided by (Used for) Operating Activities Business-tvpe Activities- Enterprise Funds Governmental Activities- Nonmajor Internal Sherman Proprietary Service Water Sewer Garage Funds Total Funds $ 4,354,497 $ 8,972,788 $ (834,036) $ (746,519) $ 11,746,730 $ (1,844,643) 1,384,583 2,834,158 765,276 857,575 5,841,592 1,553,190 (35,374) 10,238 (25,136) (43,476) (24,995) 218,332 40,000 233,337 (1,862) (290,188) 405 54,500 (237,145) 176,650 (16,913) (222,489) (239,402) (73,982) (137,998) 64,901 5,597 (67,500) 43,105 4,337 (35,510) 11,932 (19,102) 12,659 6,006 1,823 20,488 4,352 7,705 7,705 (963,945) 70,322 66,538 141,563 (47,576) 230,847 (55,197) (299,615) 514,476 214,861 (83,327) (7,575) (90,902) 1,162,086 $ 5,348,409 $ 12,085,532 $ 73,208 $ 140,258 $ 17,647,407 $ (104,067) Note: Non Cash Capital Asset Acquisition Sherman Garage Fund incurred a non cash transaction transfer of net capital assets of $40,926,869 and related debt of $47,275,000 from the governmental activities of the City and the recognition of the loan receivable related to the sale of transferred property in the amount of $5,082,575. The accompanying notes are an integral part of this statement ME CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets February 28, 2007 Pension Special Assessment Trust Funds Agency Fund Assets Cash and short-term investments $ 7,328,516 $ 21,073 Receivables Accrued interest 458,368 Due from other funds 2,821,242 Total Receivables 3,279,610 - Investments, at fair value U.S. Government obligations 50,119,192 Common stock 11,651,855 Mutual funds 33,250,396 Total Investments 95,021,443 - Total Assets 105,629,569 21,073 Liabilities Vouchers payable 6,462 Due to special assessment bondholders - 21,073 Total Liabilities 6,462 21,073 Net assets held in trust $ 105,623,107 $ - The accompanying notes are an integral part of this statement. -22- CITY OF EVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Year ended February 28, 2007 Pension Trust Funds Additions Contributions Employer $ 8,102,605 Plan members 1.940.581 Total contributions 10,043,186 Investment income Net appreciation in fair value of investments 4,256,212 Interest 3,313,160 Total investment income 7,569,372 Less investment expense 314,607 Net investment income 7,254,765 Total additions 17,297,951 Deductions Benefits 10,571,217 Refunds of contributions 102,448 Administrative expense 55,459 Total deductions 10,729,124 Net increase 6,568,827 Net assets held in trust for pension benefits Beginning of year 99,054,280 End of year $ 105,623,107 The accompanying notes are an integral part of this statement. -23- This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page Note 1. Summary of Significant Accounting Policies A. Reporting Entity 27 B. Government -wide and Fund Financial Statements 28 C. Fund Accounting 29 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 30 E. Cash and Equivalents 33 F. Investments 33 G. Inventories 33 H. Capital Assets 33 I. Compensated Absences 34 J. Long -Term Obligations 34 K. Self -Insurance 35 L. Property Taxes 35 M. Fund Equity 36 N. Interfund Transactions 36 O. Use of Estimates 36 Note 2. Reconciliation of Government -wide and Fund Financial Statements A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets 37 B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government - wide Statement of Activities 37 Note 3. Stewardship, Compliance, and Accountability A. Budgetary Information 39 B. Deficit Fund Equity 41 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 41 B. Pooling of Cash and Investments 42 C. Types of Investments 42 D. Deposits 44 E. Reconciliation of Unrestricted and Restricted Cash and Investments 45 -24- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 5. Receivables A. Summary of Receivables 47 B. Notes Receivable — Special Revenue Funds 47 C. Notes Receivable — Sherman Garage Fund 47 Note 6. Capital Assets A. Capital Asset Activity 48 B. Construction Commitments 50 Note 7. Interfunds A. Interfund Accounts 51 B. Interfund Transfers 55 C. Capital Contribution 57 Note 8. Operating Leases 58 Note 9. Long -Term Debt A. Changes in Long -Term Debt 59 B. General Obligation Bonds Payable 61 C. Special Service District Bonds Payable 62 D. Revenue Bonds Payable 63 E. Notes Payable — Sewer IEPA Loans 63 F. Prior Years' General Obligation Bond Defeasances 64 G. Prior Years' Special Service District #5 Bond Defeasances 65 Note 10. Fund Equity A. Restrictions of Net Assets - Water Fund 65 B. Restricted Net Assets - Fiduciary Funds 66 C. Reservations of Fund Equity 67 D. Unrestricted Fund Equity - Designated 68 Note 11. Individual Fund Activities A. General Obligation Debt Service Fund 69 B. Water Fund 69 C. Special Service District No. 4 69 Note 12. Risk Management — Claims and Judgments 70 Note 13. Subsequent Events 71 - 25 - CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Page (continued from previous page) Note 14. Contingencies 71 Note 15. Joint Ventures A. Northwestern University 71 B. Solid Waste Agency of Northern Cook County 72 C. Evanston Housing Corporation 74 Note 16. Deferred Compensation Plan 75 Note 17. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description B. Funding Status and Progress C. Annual Pension Cost Police and Firefighters' Pension Plans D. Plan Descriptions E. Summary of Significant Accounting Policies - Basis of Accounting - Method Used to Value Investments F. Contributions and Reserves G. Concentration of Investments H. Three -Year Trend Information — Pension Trust Funds I. Pensions - Detailed Statement of Net Assets J. Pensions - Detailed Statement of Changes in Net Assets K. Pensions - Actuarial Valuations 76 77 77 Z7 80 80 80 81 82 83 84 85 -26- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Evanston (City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City was incorporated in 1863. The City operates under a Council -Manager form of government, is a home rule municipality as defined by Illinois state law, and provides the following services as authorized by its charter: general management and support, public safety, public works, health and human resource development, recreational and cultural opportunities, and housing and economic development. As required by GAAP, these financial statements present the City (the primary government) and its component unit, an entity for which the City is considered to be financially accountable. Although the component unit is legally a separate entity, it is governed by the same board; therefore, data from this unit is blended with data of the City. Blended Component Unit: The Town of the City of Evanston, Illinois (Township) is a separate legal entity which administers General Assistance, a public welfare program assigned by Illinois law to townships. Eligible clients receive General Assistance for food, shelter, and medical needs. Through the town -fund levy, the Township also supports a number of community action programs, which provide direct services to welfare recipients. The Township is governed by a Township Board of Trustees and provides services within the same geographic boundaries of the City. The Township Board of Trustees are the same individuals as the City Council. The Township board levies taxes and is responsible for adopting the Township budget and approving payment of bills. The Township has two elected officials: the Supervisor and the Assessor, each elected for four-year terms. The Supervisor is responsible for Township funds and for the administration of General Assistance. The Assessor does not actually assess property; that function is carried out by the Cook County Assessor. The Township Assessor serves as a taxpayer's advocate, helping citizens with tax -related questions. The Assessor also works to assure equity of assessments, and maintains records of building and demolition permits and of all tax-exempt properties. The Township Board of Trustees can issue debt on its own behalf, and such debt can be issued in the Township's name alone. -27- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued The Township is included in the Reporting Entity due to its financial accountability because the Township Board of Trustees are the same individuals as the City Council members. The Township has a March 31 fiscal year-end. Amounts included in this report are as of and for the year ended March 31, 2006. This report is the most recent one available. 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: The City participates in three joint ventures, which are reported as nonequity governmental joint ventures and are described in Footnote 15. The joint ventures are: City of Evanston and Northwestern University Research Park; Solid Waste Agency of Northern Cook County (SWANCC); and Evanston Housing Corporation. B. Government -wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. The effect of interfund activity has been removed from these statements excluding interfund services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include l) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. -28- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B. Government -wide and Fund Financial Statements - Continued Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are reported in the supplementary information. C. Fund Accounting The City uses funds to report on its financial position and the results of its operations. A fund is a separate accounting entity with a self -balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Funds are classified into three categories: governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." Governmental finds 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. 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. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the City. When these assets are held under the terms of a formal trust agreement, a permanent fund is used. Agency funds generally are used to account for assets that the City holds on behalf of others as their agent. The pension trust fund accounts for the activities of the Police and Firefighters' Pension funds, which accumulate resources for pension benefit payments to retired police and fire personnel. 29 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property taxes as available if they are collected within 60 days of the end of the current fiscal period. A six month availability period is used for revenue recognition for all other governmental fund revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be made early in the following year. The following revenues associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. 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 -30- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The City reports the following major proprietary funds: The Water Fund accounts for the provision of water services to the residents of the City and the sale of water to the Village of Skokie, Illinois, and the Northwest Water Commission. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operation, maintenance, financing and related debt service, and billing and collection. The 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 Sherman Garage Fund accounts for the provision of the public and residential parking facility on Sherman Avenue. All activities are accounted for including administration, operations, financing and revenue collection. 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. 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. ME CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements 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 funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 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. -32- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued E. Cash and Equivalents Cash and equivalents represent cash on hand, cash deposited in interest -bearing and noninterest-bearing checking accounts, and investments in money markets, certificates of deposit, and treasury obligations with maturities of three months or less at the date of acquisition, and cash deposited with the Illinois Funds. F. Investments 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. Investments with over one year to maturity are reported at fair value. All other investments are stated at cost or, for U.S. government securities, amortized cost. These securities maybe purchased at a premium or discount which is amortized over the life of the investment. This valuation method approximates fair value. G. Inventories 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. H. Capital Assets Capital assets, which include property, plant, and equipment and infrastructure assets (e.g. roads, sidewalks, trails, bridges, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the government as equipment and vehicles with an initial, individual cost of more than $20,000, or infrastructure, buildings, or building improvements with an initial, individual cost of more than $100,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Infrastructure acquired prior to the February 28, 2003 implementation of GASB 34 has been reported. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. - 33 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued H. Capital Assets - Continued Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: Description Land improvements Leasehold improvements Plant Transmission and distribution system Sewer system and underground lines Parking meters 1. Compensated Absences Years Description Years 10-100 Buildings and improvements 10-50 10-100 Office equipment and furniture 5-15 20-100 Machinery and equipment 5-15 Infrastructure 30-100 5-100 Library collections 7 75-100 15 It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All payments due in the event of termination are accrued when incurred in the government -wide and proprietary fund financial statements. The General Fund has been used in prior years to liquidate the liability for compensated absences of governmental funds. J. Long -Term Obligations 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. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. -34- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K. Self -Insurance 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. L. Property Taxes 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 property tax calendar for Cook County is as follows: Lien Date Levy Date First Installment Due Date (one-half of prior bill) Second Installment Due Date (balance of total bill) January 1 of Levy Year December of Levy Year March 1 of Year following Levy Year 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, 2006 and February 28, 2007 and all property tax collections received within 60 days after the end of the fiscal year. The adjustment necessary to convert GAAP basis property tax revenues to budgetary basis is shown in the notes to the required supplementary information in the section on Budgets and Budgetary Accounting. The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2005 property tax levy that will not be collected within 60 days of the Township's March 31, 2006 year-end. A 5% allowance for loss is reflected in the Township financial statements. -35- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued M. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent management plans that are subject to change. N. Interfund Transactions Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as operating transfers. O. Use of Estimates In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. -36- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets The governmental fund balance sheet includes a reconciliation between fund balance - total governmental fiends 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 $141,952,584 difference are as follows: General obligation bonds payable $ 110,920,000 Special service district bonds payable 3,070,000 Bonds premium liability 4,527,694 Compensated absences payable 9,814,590 Pension contributions payable 13,620,300 Net adjustments to reduce fund balance — total governmental funds to arrive at net assets — governmental activities. $ 141,952,584 B. Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -wide Statement of Activities The government fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net assets of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $12,472,985 difference are as follows: Capital outlay $ 18,332,983 Depreciation expense (5,859,998) Net adjustment to increase net changes in fiord balances - total governmental funds to arrive at changes in net assets of governmental activities $ 12,472,985 siren CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS — Continued B. 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 2. 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 $25,280,000 difference are as follows: Principal repayments: General obligation debt SSD#5 Bond refunded $ 25,015,000 265,000 Net adjustment to increase net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities $ 25,280,000 3. 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 ($1,752,448) difference are as follows: Compensated absences Amortization income Pension contributions $ (1,665,458) 343,952 (430,942) Net adjustment to decrease net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities $ (1,752,448) 4. Another element of that reconciliation states that "Issuance of 2006 and 2006B 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 ($24,915,693) difference are as follows: 2006 Bond Series $ (10,290,000) 2006B Bond Series (14,430,000) Bonds premium liability (195,693) Net adjustment to decrease net changes in fund balances — total governmental funds to arrive at changes in net assets of governmental activities $ (24,915,693) -38- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements 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. 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. 2. Public budget hearings are conducted. Taxpayer comments are received and noted. 3. The budget is legally enacted through passage of a resolution. 4. 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. 5. 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 (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balance, GAAP revenues and expenditures have been adjusted to the budgetary basis. Blended Component Unit The Township prepares its annual appropriation ordinance, which is synonymous with its budget, using the modified accrual basis of accounting. The appropriation ordinance was adopted on June 28, 2005. 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. The following City and Township funds do not have legally adopted budgets: Special Revenue Library, Neighborhood Improvement, HOME, Community Development Loan, Employee Pension Contribution S&Z CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued A. Budgetary Information - Continued Capital Projects Capital Improvements, Central Business Tax Increment District, Washington National Tax Increment District, Special Assessment 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. The following City funds had an excess of actual budgetary expenditures over original and final budget for the year ended February 28, 2007: Fund Actual Budget Excess Central Business Tax Increment District $ 7,756,004 $ 4,799,800 $ 2,956,204 Southwest Tax Increment District 917,519 292,800 624,719 Howard Hartrey Tax Increment District 704,676 693,700 10,976 Community Development Block Grant 2,692,229 2,052,319 639,910 Economic Development 1,021,385 848,900 172,485 Motor Fuel Tax 1,845,900 1,500,000 345,900 General Fund 86,026,230 85,609,800 416,430 -40- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued B. DEFICIT FUND EQUITY The Insurance Fund, an internal service fund, had a net assets deficit of $617,573 as of February 28, 2007. The City plans to use current resources and possible debt proceeds to pay for future liabilities. The Sherman Garage Fund had a net assets deficit of $ 362,865 as of February 28, 2007. The City plans to use current resources and possible debt proceeds to pay for future liabilities. NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities Illinois statutes and the City's investment policies authorize the City to invest in obligations of the U.S. Treasury, in Government Sponsored Enterprises (GSE) such as Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Bank (FHLB), and Fannie Mae (FNMA); Bankers acceptances as well as comercial paper rated only in the highest tier; Repurchase agreements of the highest grade; Collateralized certificates of deposit issued by FDIC insured financial institutions, money market mutual funds with portfolios limited to securities guaranteed by the United States, the Illinois Metropolitan Investment Fund (IMET), and the Illinois Funds. It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the following order: Safety of Principal, Liquidity, and Rate of Return. The City also seeks to maintain diversification of investments to avoid overconcentration of any one specific issuer or business sector. To mitigate interest rate risk, the City tries to structure the investment portfolio to meey 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. 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. B. Pooling of Cash and Investments Except for cash and investments in certain restricted and special accounts, the City pools the cash of various funds to maximize interest earnings. Interest income is allocated to the various funds based upon their respective participation. -41 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments As of February 28, 2007, the City has the following investments and maturities. Governmental and Enterprise Investment Maturities (In Years) Investment Type Fair Value Less Than 1 Year 1 - 10 More Years Equities Money Market / Liquid Assets $ 26,383,976 $ 26,383,976 $ - $ - Illinois Funds 29,264,101 29,264,101 - - Mutual Funds 1,828,904 - - 1,828,904 Federal Home Loan Mortgage Corp 8,269,520 6,779,580 1,489,940 - Federal Home Loan Bank 6,974,208 3,474,208 3,500,000 - Fannie Mae 8,630,622 5,470,741 3,159,881 - Certificate of Deposits 4,844,729 3,900,000 944,729 - Corporate Notes 507,844 - 507,844 - Total Governmental and Enterprise Investment Fund $ 86.703.904 $ 75.272.606 $ 9,602.394 $ 1.828.904 [MET Money Market $ 4,921,186 Fifth Third Money Market 1,163,000 First Bank Money Market 3,301,878 Fidelity Money Market 812,297 JP Morgan Monet Market 15,716,319 Vanguard Money Market 469,296 Total Monev Market $ 26,383.976 Township Investment Maturities (In Years) Investment Type Fair Value Less Than 1 Year 1 - 10 More Years Equities Illinois Funds $ 833.528 $ 833,528 $ - $ - Total Township Investment $ 833.528 $ 833,528 $ - $ - MIRM CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued Fire and Police Pension Investment Maturities (In Years) Investment Type Fair Value Less Than 1 Year 1 - 10 More Years Equities Money Market / Liquid Assets $ 6,811,404 $ 6,811,404 $ - $ - Mutual Funds 33,250,396 - 3,558,803 29,691,593 U.S. Treasuries 23,376,487 2,487,824 20,888,663 - Federal Farm Credit Bank 23,325 - 23,325 - Federal Home Loan Bank 1,573,897 - 1,573,897 - Federal Home Loan Mortgage Corp 8,243,105 571,835 7,671,270 - Fannie Mae 12,649,443 4,521,480 8,127,963 - Ginnie Mae 4,252,936 7,242 4,245,694 - Common Stock 11,651,855 - - 11,651,855 Total Fire and Police Investment $ 101.832.848 $ 14.399.785 $ 46.089.615 $ 41.343.448 JP Morgan Trust Money Market $ 292,131 Smith Barney Money Market 2,317,849 JP Morgan Monet Market 1,980,027 Schwab Money Market 733,552 MB Bank Money Market 1,384,224 IMET Money Market Convenience 103,621 $ 6,811,404 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. 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. As of June 30, 2006, 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%. The City's investment in Federal Home Loan Mortgage, Fannie Mae, and Federal Home Loan Bank bonds were rated AAA by Standard & Poor's and Aaa by Moody's Investors Service. - 43 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued 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. Concentration of Credit Risk. It is the policy of the City to diversify its investment portfolio. Investments shall be diversified to eliminate the risk of loss resulting in overconcentration in a security, maturity, issuer, or class of securities. D. Deposits Cijy Deposits consist of deposits in interest -bearing and noninterest-bearing checking accounts. At February 28, 2007, the carrying amount of the City's deposits, including cash on hand of $41,183, was $8,154,181, The financial institutions' balances totaled $9,477,237. Township At March 31, 2006, the carrying amount of the Township's deposits was $268,926. The financial institutions' balances totaled $275,391. Fiduciary Deposits consist of deposits in interest -bearing and noninterest-bearing accounts. At February 28, 2007, the carrying amount of the Pension's deposits was $517,112 and $21,073 for Agency. The financial institutions' balances totaled $523,362 and $21,073, respectively. 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: iL! CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS — Continued E. Reconciliation of Unrestricted and Restricted Cash and Investments - Continued Unrestricted cash and equivalents $ 64,264,206 Unrestricted investments 15,314,444 Restricted cash and equivalents and investments 16,381,890 Total Cash and Investments — Primary Government 95,960,540 Fiduciary funds cash and equivalents 7,349,589 Fiduciary funds investments 95,021,443 Total Cash and Investments $ 198,331,572 Carrying amount of deposits — from Note 4 D $ 8,961,292 Investments — from Note 4 C 189,370,280 Total $ 198,331,572 - 45 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 5. RECEIVABLES A. Summary of Receivables Receivables as of year - end for the government's individual major funds and nonmajor, internal service, and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Nonmajor Nonmajor General Sherman Enterprise and Other Fund water Sewer Garage Fund Funds Total Receivables: Property taxes $ 15,632,560 $ $ $ $ $ 27,124,006 $ 42,756,566 Accounts - 1,942,380 2,415,049 4,357,429 Loan - - 5,082,571 5,082,571 Notes 5,640,388 5,640,388 Special assessments 906,547 906,547 Accrued interest 11,290 137,998 - - 19,936 129,750 298,974 Other 2,105,915 55,862 150 4 1,448 412,515 2,575,894 Gross receivables 17,749,765 2,136,240 2,415,199 5,082,575 21,384 34,213,206 61,618,369 Less: allowance for uncollectibles 306,521 - - - 628,492 935,013 Net total receivables $ 17,443,244 $ 2,136,240 $ 2,415,199 $ 5,082,575 $ 21,384 $ 33,584,714 60,683,356 Net total receivables - Statement of Net Assets B. Notes Receivable — Special Revenue Funds $ 60,683,356 The City makes loans to City residents for the rehabilitation of single-family and multi -family housing. Initial funding for these loans was from Community Development Block Grant (CDBG) and Housing and Urban Development (HUD) Funds. Two types of loans are made: (1) title transfer loans which are due in full when the housing unit is sold, and (2) amortizing loans which are due in monthly installments over varying lengths of time. Repayments of principal and any interest earned on these receivables, which are recorded in the respective Special Revenue funds, are used to make additional rehabilitation loans. An allowance of $96,649 exists in the Special Revenue funds due to doubtful accounts. Loan activity for the current year is summarized as follows: Interest Beginning Loans Loan End of Rates of Year Made Repayments Year 0% - 8% $ 6,132,171 $ 209,627 $ 798,059 $ 5,543,739 C. Notes Receivable - Sherman Garage Fund Sherman Garage Fund incurred a non cash transaction transfer of capital assets of $48,496,1 12. The City sold 303 parking spaces to the developer at $24,981 per space for a total of $7,569,243. There was an outstanding receivable from the developer in the amount of $5,082,575 with no interest accruing as of 02/28/2007. -47- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. A. Capital Asset Activity Capital asset activity for the year ended February 28, 2007, was as follows: Beginning of Year Additions Deletions End of Year Governmental activities: Capital assets, not being depreciated: Land Right of way 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 $ 6,556,620 $ $ - $ 6,556,620 18,695,896 - - 18,695,896 41,657,942 8,424,274 48,496,112 1,586,104 66,910,458 8,424,274 48,496,112 26,838,620 78,509,383 284,674 - 78,794,057 9,534,769 544,334 - 10,079,103 20,939,965 1,462,813 1,183,237 21,219,541 85,894,840 8,400,945 - 94,295,785 10,192,310 510,251 1,414,292 9,288,269 664,069 - - 664,069 205,735,336 11,203,017 2,597,529 214,340,824 23,434,757 1,796,053 - 25,230,810 5,070,621 1,312,902 - 6,383,523 13,306,814 1,706,164 1,160,172 13,852,806 44,116,889 2,172,064 - 46,288,953 8,620,845 426,005 1,414,292 7,632,558 664,069 - - 664,069 95,213,995 7,413,188 2,574,464 100,052,719 110,521,341 3,789,829 23,065 114,288,105 $ 177,431,799 $ 12,214,103 $ 48,519,177 $ 141,126,725 -48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. A. Capital Asset Activity - Continued Business -type activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Land improvements Buildings and improvements Leasehold improvements Plant Transmission and distribution system Sewer system and underground lines Equipment Parking meters Total capital assets being depreciated Less accumulated depreciation for: Land improvements Buildings and improvements Leasehold improvements Plant Transmission and distribution system Sewer system and underground lines Equipment Parking meters Beginning of Year Additions Deletions End of Year S 3,297,937 $ - $ - $ 3,297,937 18,279,118 14,108,812 26,146,188 6,241,742 21,577,055 14,108,812 26,146,188 9,539,679 3,386,672 - - 3,386,672 31,428,772 40,926,869 - 72,355,641 302,752 - - 302,752 31,444,243 584,969 46,372 31,982,840 26,118,377 4,198,334 - 30,316,711 197,675,521 20,523,664 29,566 218,169,619 1,931,234 - 33,698 1,897,536 448,851 258,837 - 707,688 292,736,422 66,492,673 109,636 359,119,459 700,932 80,567 - 781,499 4,877,656 1,482,125 - 6,359,781 266,829 13,262 - 280,091 9,327,262 719,685 41,777 10,005,170 4,260,094 641,397 - 4,901,491 21,932,686 2,719,276 - 24,651,962 1,465,219 141,361 33,609 1,572,971 302,206 43,919 - 346.125 Total accumulated depreciation 43,132,884 5,841,592 75,386 48,899,090 Total capital net assets being depreciated, net 249,603,538 60,651,081 34,250 310,220,369 Business -type activities capital assets, net $ 271,180,593 $ 74,759,893 $ 26,180,438 $ 319,760,048 -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. A. Capital Asset Activity - Continued Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General management and support $ 2,895,965 Public safety 513,479 Public works 2,194,627 Recreation and cultural opportunities 1,809,117 Total depreciation expense — governmental activities $ 7,413,188 Business — type activities: Water $ 1,384,583 Sewer 2,834,158 Sherman Garage 765,276 Maple Avenue Garage 684,932 Motor Vehicle Parking 172,643 Total depreciation expense — business — type activities $ 5,841,592 B. Construction Commitments The value of construction contracts signed, where the work has not yet been performed at February 28, 2007, is as follows: Capital Improvement Fund $ 471,021 Water Fund 21,337 Sewer Fund 14,098,754 Total Construction Commitments $ 14,591,112 -50- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7 INTERFUNDS 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. A. Interfund Accounts At February 28, 2007 interfund receivables and payables consist of the following: Due from Due to Funds Other Funds Other Funds Governmental Funds General Fund Emergency Telephone System $ 1,240 S - Economic Development 2,059 - EVNORSKO 5,575 - Fleet Service 20,384 - Insurance 795 - Community Development Block Grant 293 - Washington National Tax Increment District 450 - Central Business Tax Increment District 170 - Capital Improvements 9,063 - Maple Avenue Garage 8,514 - Sherman Garage 485 - Motor Vehicle Parking System 6,799 - Water 41,935 - Sewer - 4,056 Firefighters Pension 183 Police Pension - 6.046 Total General Fund 97.762 10.285 Nonmajor Governmental Funds Motor Fuel Tax Community Development Loan 1,113 - Economic Development General - 2,059 Capital Improvement - 35,202 West Evanston Tax Increment District 10.381 - Total Economic Development 10,381 37.261 Emergency Telephone System General - 1.240 -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7 INTERFUNDS - Continued A. Interfund Accounts - Continued Funds Nonmajor Governmental Funds - Continued HOME Community Development Block Grant S Community Development Block Grant General HOME Community Development Loan Total Community Development Block Grant Community Development Loan Community Development Block Grant Motor Fuel Tax Total Community Development Loan Special Service District No. 4 Washington National Tax Increment District Employer Pension Contribution Firefighters Pension Police Pension Total Employer Pension Contribution Town General Assistance General Assistance Town Central Business Tax Increment District General Washington National Tax Increment District Special Service District No. 4 West Evanston Tax Increment District Economic Development Capital Improvements Fleet Economic Development Sewer Special Assessment General Total Capital Improvements Due from Due to Other Funds Other Funds - S 7,100 - 293 7,100 - - 5,155 7,100 5,448 5,155 - 1.113 5,155 1,113 - 19,221 - 1,333,766 - 1,481,247 - 2,815,013 17,853 - 17,853 170 19,221 - 10,381 - 105,000 35,202 - - 82,969 3,517 - 9,063 35,202 200,549 -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7 INTERFUNDS - Continued A. Interfund Accounts - Continued Funds Nonmajor Governmental Funds - Continued Washington National Tax Increment District General Special Assessment Capital Improvements Sherman Garage Total Special Assessment Total Nonmajor Governmental Funds Total Governmental Funds Enterprise Funds Water Sewer General Total Water Sewer General Capital Improvements Water Total Sewer Sherman Garage Special Assessment General Total Sherman Garage Nonmajor Enterprise Funds Maple Avenue Garage General Motor Vehicle Parking System Total Maple Avenue Garage Due from Due to Other Funds Other Funds - $ 450 3,517 - - 80 3,517 80 99,542 3,115,879 197,304 3,126,164 15,208 - - 41,935 15,208 41,935 4,056 - 82,969 - - 15.208 87,025 15,208 80 - - 485 80 485 - 8,514 5,500 - 5,500 8,514 53 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7 INTERFUNDS - Continued A. Interfund Accounts - Continued Due from Due to Funds Other Funds Other Funds Nonmajor Enterprise Funds - Continued Motor Vehicle Parking System General $ - $ 6,799 Maple Avenue Garage - 5,500 Total Motor Vehicle Parking System - 12,299 Total Nonmajor Enterprise Funds 5,500 20,813 Total Enterprise Funds 107,813 78,441 Internal Service Funds Fleet Services General - 20,384 Capital Improvements 105,000 - Total Fleet Services 1051.000 20,384 Insurance General - 795 Total Internal Service Funds 105,000 21,179 Trust and Agency Funds Firefighters Pension General 183 - Employer Pension Contribution 1,333,766 - Total Firefighters Pension 1,333,949 - Police Pension General 6,046 - Employer Pension Contribution 1,481,247 - Total Police Pension 1,487,293 Total Trust and Agency Funds 2,821,242 - Total All Funds 3,231,359 3,225,784 Less total due from other Agency (EVNORSKO) (5,575) - Total Primary Government $ 3,225,784 $ 3,225,784 -54- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7 INTERFUNDS - Continued B. Interfund 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. At February 28, 2007 transfers in / out consist of the following: Funds Governmental Funds General Fund Motor Fuel Tax $ Mayor's Special Housing Central Business Tax Increment District Washington National Tax Increment District Howard Hartrey Tax Increment District Southwest Tax Increment District Capital Improvements Special Assessment General Obligation Debt Water Fleet Total General Fund Nonmajor Governmental Funds Motor Fuel Tax General Economic Development Maple Avenue Garage Mayor's Special Housing General Community Development Block Grant Community Development Loan Community Development Loan Community Development Block Grant Transfers Transfers In Out 772,500 $ 31,800 325,000 144,800 - 135,000 - 23,000 - 100,000 - 31,800 - - 175,000 2,693,600 - - 300,000 4,257,500 475,000 772,500 650,000 31,800 4,321 - 4,321 -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Funds Nonmajor Governmental Funds - Continued Town General Assistance $ General Assistance Town General Obligation Debt General Special Assessment Total General Obligation Debt Central Business Tax Increment District General Washington National Tax Increment District Maple Avenue Garage Total Central Business Tax Increment District Southwest Tax Increment District General Howard Hartrey Tax Increment District General Washington National Tax Increment District General Water Sherman Central Business Tax Increment District Total Washington National Tax Increment District Capital Improvements Water General Total Capital Improvement Special Assessment General General Obligation Debt Total Special Assessment Total Nonmajor Governmental Funds Total Governmental Funds Transfer Transfer In Out - S 125.000 125,000 175,000 337,500 - 512,500 325,000 845,315 4,502,000 5,672,315 23,000 135,000 144,800 - 727,500 1,486,672 - 845,315 - 2,331,987 872,300 2,000,000 100,000 2,100,000 31,800 337,500 369,300 2,973,808 10,755,536 7,231,308 11,230,536 IKs CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7 INTERFUNDS - Continued B. Interfund Transfers - Continued Transfer Transfer Funds In Out Enterprise Funds Water General S - S 2,693,600 Capital Improvement 2,000,000 - Insurance - 2,000,000 Total Water 2,000,000 4,693,600 Sewer Insurance - 3,000,000 Sherman Garage Washington National Tax Increment District 727,500 1,486,672 Nonmajor Enterprise Funds Maple Avenue Garage Central Business Tax Increment District 4,502,000 - Economic Development 650,000 - Total Maple Avenue Garage 5,152,000 - Total Nonmajor Enterprise Funds 5,152,000 - Total Enterprise Funds 7,879,500 9,180,272 Internal Service Funds Fleet Services General 300,000 - Insurance Water 2,000,000 - Sewer 3,000,000 - Total Insurance 5,000,000 - Total Internal Service Funds 5,300,000 - Total All Funds 20,410,808 20,410,808 Total Primary Government S 20,410,808 S 20,410,808 C. Capital Contribution A Capital contribution was made from governmental activities to the Sherman garage fund in the amount of $ 1,221,112. 1510 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 8 Operating Leases The City has various operating leases covering the rental of several digital office copiers from the Toshiba America Information Systems, Document Vision Technologies, and GE Capital. The copiers are located in the Evanston Civic Center, Library, Recreation Department, Water Department and the Evanston Police and Fire Station. During the 2006 fiscal year, the lease of 4 copiers for the Police and Recreation Departments, with monthly payments of $1,757, was terminated and replaced with a new contract from Document Vision Technologies for a 60-month term starting April 2005 (monthly payment $2,541), which added 2 copiers for the fourth floor and first floor of the Evanston Civic Center The City leases 9 copiers for the Library from GE Capital, with 60 months term start February 2004 (monthly payment of $1,789), 4 copier for Police Department from GE Capital with 60 months term start February 2004 (monthly payment of $1,930 and $247), 1 copier for Hearing Department from Document Vision Technologies with 60 months term start June 2003 (monthly payment of $190), 1 copier for Budget Department from Document Vision Technologies with 60 months term start April 2003 (monthly payment of $490), 1 copier for Water Department from Document Vision Technologies with 36 months term start December 2004 (monthly payment of $305), 3 copier for Fleet Department from GE Capital with 36 months term start March 2004 (monthly payment of $600), 1 copier for Chandler Center from GE Capital with 60 months term start September 2004 (monthly payment of $302), and 2 copier for Parks & Recreation from with 60 months term start February 2004 (monthly payment of $1,759). Payment on existing leases include 9 copiers for the Evanston Civic Center (monthly payment of $776), 3 copiers for Parks/Forestry and Recreation (monthly payment of $2,626), and 1 copier for the Fire Department (monthly payment of $410). Minimum annual lease payments are as follows: $ 152,939 105,236 33,649 2,541 $ 294,365 -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT A. Changes in Long -Term Debt Final Interest Maturity Rate Date Governmental activities General obligation bonds/corporate purpose bonds Series 1997 5.00%-5.50% 12/l/2017 $ Series 1998 4.80%-4.875% 12/l/2018 Series 1999 4.25%-5 00% 12/1/2019 Series 2000 Variable Rate 12/1/2021 Series 2002A Variable Rate 12/l/2018 Series 2002B Variable Rate 12/l/2007 Series 2002C 5 00%-5.80% 1/l/2022 Series 2003 2.00%-5.00% 1/1/2010 Series 2003B 2.00%-5.25% l/l/2023 Series 2004 2.00%-5.00% 12/1/2023 Series 2004B 2.00%-5.25% 12/l/2017 Series 2005 3.25%-5.00% 12/l/2025 Series 2006 3.85%-5.00% 12/1/2026 Series 2006B 4.00%-4.25% 12/1/2023 Total general obligation bonds/corporate purpose bonds Less: Business -type activity bonds Total governmental activity bonds Special Service District #5 Series 2002C rfndg 1996 5.00%- 5.80% I/l/2016 Total special service district # 5 bonds Bonds premium liability Pension contributions Compensated absences payable - City Claims payable Governmental activity Long-term liabilities $ Balance March 1, 2006 14,400,000 $ 1,350,000 31,895,000 27,800,000 29,500,000 5,500,000 12,665,000 7,745,000 10,990,000 13,225,000 11,585,000 29,220,000 195,875,000 (37,385,000) 158,490,000 3,335,000 3,335,000 4,675,953 13,189,358 8,590,124 4,534,114 192,814,549 $ Issued or Adjusted -5 10,290,000 14,430,000 Retired or Transferred to Debt Service Funds 2,430,000 $ 420,000 3,060,000 8,900,000 7,215,000 2,530,000 7,350,000 145,000 800,000 24,720,000 32,850,000 (47,275,000) (7,835,000) (22,555,000) 25,015,000 265,000 265,000 195,693 343,952 430,942 - 6,092,944 4,622,635 1,851,161 689,075 (13,984,260) $ 30,935,662 $ Balance February 28, Due Within 2007 One Year 11,970,000 $ 1,330,000 930,000 450,000 28,835,000 2,760,000 18,900,000 18,900,000 29,500,000 29,500,000 5,500,000 5,500,000 5,450,000 715,000 5,215,000 2,610,000 3,640,000 80,000 13,080,000 140,000 11,585,000 1,370,000 28,420,000 825,000 10,290,000 120,000 14,430,000 - 187,745,000 64,300,000 (76,825,000) (46,495,000) 110,920,000 17,805,000 3,070,000 285,000 3,070,000 285,000 4,527,694 - 13,620,300 10,060,433 4,427,486 5,696,200 821,700 147,894,627 $ 23,339,186 512 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued A. Changes in Long -Term Debt - Continued Final Interest Maturity Rate Date Business -type Activities General obligation bonds/corporate purpose bonds Sewer Sherman Garage Maple Avenue Garage Parking System Total general obligation bonds/corporate purpose bonds Unamortized bond expenses and discount Water Fund revenue bonds Series 1999 4.125-4.375% 1/1/2014 Series 2002 2.00-3.75% 1/1/2012 Total Water Fund revenue bonds Sewer Fund — Illinois Various Environmental Protection Through Agency loans 2.535-3.59% 11/26/2021 Compensated absences payable - City Business -type activity long-term liabilities Balance March 1, 2006 S 20,570,000 S 13,100,000 3,715,000 37,385,000 (28,754) Retire or Transferred Issued to Debt or Service Adjusted Funds - $ 2,050,000 $ 47,275,000 5,200,000 - 585,000 47,275,000 7,835,000 - (15,876) Balance February 28, Due Within 2007 One Year 18,520,000 $ 2,155,000 47,275,000 35,810,000 7,900,000 7,900,000 3,130,000 630,000 76,825,000 46,495,000 (12,878) - 2,105,000 230,000 1,875,000 235,000 1,605,000 240,000 1,365,000 250,000 3,710,000 - 470,000 3,240,000 485,000 101,400,675 4,498,539 6,408,293 99,490,921 6,942,338 575,388 85,686 75,468 585,606 585,606 $ 143,042,309 $ 51,859,225 $ 14,772,885 $ 180,128,649 $ 54,507,944 101110 CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONGTERM DEBT - Continued B. General Obligation Bonds Payable The City issued 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. During the current fiscal year, the City paid an additional $144,468 due to the swap agreement. 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 $15,890,000 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 the 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. 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. 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 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. -61 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable - Continued 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 of $769,505 which translates to a net present value savings of $665,226. Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending February 28 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 Total C. Special Service District Bonds Payable Governmental Activities Business -type Activities Principal Interest Principal Interest $ 17,805,000 $ 5,737,092 $ 46,495,000 $ 10,093,925 5,640,000 4,057,778 3,820,000 1,639,135 5,760,000 3,855,034 4,040,000 1,425,178 5,875,000 3,676,446 3,635,000 1,198,375 6,375,000 3,449,493 3,825,000 1,002,911 34,130,000 13,007,030 11,810,000 2,354,586 23,880,000 6,090,299 3,200,000 237,681 11,455,000 1,380,325 - - $ 110,920,000 $ 41,253,497 $ 76,825,000 $ 17,951,791 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. Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending Governmental Activities February 28 Principal Interest 2008 $ 285,000 $ 157,313 2009 295,000 143,063 2010 305,000 128,313 2011 325,000 113,063 2012 335,000 96,813 2013-2017 1,525,000 205,013 Total $ 3,070,000 $ 843,578 lsya CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued D. Revenue Bonds Payable 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. Revenue bond debt service requirements to maturity are as follows: Year Ending February 28 2008 2009 2010 2011 2012 2013-2017 Total E. Notes Payable - Sewer IEPA Loans Business -type Activities Principal Interest $ 485,000 6 128,713 510,000 110,913 525,000 91,556 550,000 71,269 575,000 49,344 595,000 39,375 $ 3,240,000 $ 491,170 During the fiscal year ended February 28, 2007, the City currently has 25 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. Notes payable — Sewer IEPA debt service requirements to maturity are as follows: Year Ending Business -type Activities February 28 Principal Interest 2008 S 6,942,338 $ 2,729,554 2009 7,146,225 2,525,580 2010 7,356,195 2,315,521 2011 7,572,433 2,099,191 2012 7,795,129 1,876,401 2013-2017 35,169,052 6,142,141 2018-2022 21,170,641 2,168,286 2023-2027 6,338,908 346,945 Total $ 99,490,921 $ 20,203,620 -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued F. Prior Years' General Obligation Bond Defeasances 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. 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. The trust account assets and the liabilities for the defeased bonds are not included in the City's financial statements. At February 28, 2007, the following remaining outstanding balances are considered defeased: Original Outstanding GO Series Amount Defeased Defeased Amounts 1996 9,765,000 9,765,000 1997 11,085,000 11,085,000 1998 6,350,000 6,350,000 2002C 6,480,000 6,480,000 2003B 7,270,000 7,270,000 The outstanding balances of Series 1997, 1998, 2002C and 2003B, not defeased at February 28, 2007, are recorded as a liability in the City's financial statements. Those balances are as follows: Series 1997 $ 11,970,000 1998 930,000 2002C 5,450,000 2003B 3,640,000 -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued G. Prior Years' Special Service District #5 Bond Defeasances 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. Original Outstanding Snecial Service District #5 Amount Defeased Defeased Amounts 1995 $ 1,990,000 $ 1,990,000 ..f 1,260,000 1,260,000 There are no outstanding balances for Special Service District #5 bonds 1995 and 1996, not defeased at February 28, 2007. NOTE 10. FUND EQUITY A. Restrictions of Net Assets - Water Fund 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 improvernent 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. -65- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. FUND EQUITY - Continued A. Restrictions of Net Assets - Water Fund - Continued 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. B. Restricted Net Assets - Fiduciary Funds Fiduciary Funds Firefighters' Pension Fund Restriction for employee pension benefits $ 43,782,756 Police Pension Fund Restriction for employee pension benefits 61,840,351 Total Fiduciary Funds $ 105,623,107 IFTi CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. FUND EQUITY - Continued C. Reservations of Fund Equity Reservations are used to segregate portions of fund equity which are either legally restricted for specific purposes or not "available spendable resources." The following reservations are reported: City General Fund Reserved for encumbrances $ 80,388 Reserved for Arts Council 34,265 Reserved for private elm trees 98,408 Reserved for parkway trees 198,449 Reserved for Butterfield sculpture 31,833 Reserved for scholarship contributions 34,203 Reserved for public library acquisitions 387,150 Reserved for recreation group activities 207,123 Other reserves 255,472 Total General Fund 1,327,291 Special Revenue Funds Reserved for notes receivable 5,543,739 Debt Service Funds Reserved for debt service 26,197,533 Total Reserved Fund Equity - Governmental Funds $ 33,068,563 -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements 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 259.731 Total General Fund 5,426,091 Special Revenue Funds Specific Capital Projects Motor Fuel Tax 1,947,208 Library 2,809,966 Total Special Revenue Funds 4,757,174 Capital Projects Funds Specific capital projects Capital Improvements 12,062,038 Central Business Tax Increment District 4,351,894 Special Assessment 2,602,715 Washington National Tax Increment District 191,321 Total Capital Projects Funds 19,207,968 Unrestricted Fund Equity - Designated $ 29,391,233 The Township has no designated unrestricted fund equity. -68- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 11. INDIVIDUAL FUND ACTIVITIES A. General Obligation Debt Service Fund 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. B. Water Fund On January 28, 1997, the City executed a long-term water supply contract with the Village of Skokie, Illinois, to replace an expiring contract. The contract took effect on March 1, 1997 and continues in effect for a period of twenty years until February 28, 2017. The contract is renewable at ten-year intervals thereafter. Under the terms of the contract, Evanston is to supply Skokie sufficient potable Lake Michigan water to satisfy the maximum 24- hour demand for Lake Michigan water of the Village of Skokie system. The City also provides potable Lake Michigan water to the Northwest Water Commission (NWWC) under a long- term water supply contract. Sale of potable water under this contract began on February 28, 1985 and continues until February 28, 2030. Under the terms of the current contract, Evanston is to supply the NWWC sufficient potable Lake Michigan water to satisfy the Commission's maximum 24-hour demands for Lake Michigan water for resale to the Commission's customers. C. Special Service District No. 4 On August 13, 2007, the City Council adopted Ordinance No. 37-R-07 which extended the life of Special Service District No. 4 until December 31, 2019. Special Service District No. 4 comprises the central business district of the City. The special district was established for the purpose of providing funds for special maintenance and repair and for promotion and advertisement. The Ordinance states that the annual property tax levy for the District shall be the lesser of an annual rate of .30% of the assessed value as equalized or $255,000. The annual property tax levy for 2006 was $255,000. 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. -69- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 12. RISK MANAGEMENT - CLAIMS AND JUDGMENTS The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to the City's employees. The City maintains commercial all-risk property insurance to cover damage to City facilities and contents and other losses including business interruption and loss of rents. The coverage is subject to a deductible of $25,000 for each loss and each location. The City also maintains crime and fidelity insurance coverage with a $10,000 deductible to a limit of $2,000,000. In addition, coverage is maintained for ambulance/paramedic liability and dental malpractice. For workers' compensation, specific excess coverage in excess of $350,000 per occurrence is 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 reimbursement basis. The fund accounts for the aforementioned liabilities of the City, but does not constitute a transfer of risk from the City. The City records estimated liabilities for workers' compensation and for general claims. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claim adjustment expenses. The changes in the balances of claims liabilities during the past two fiscal years are as follows: Workers' General Compensation Liability Total March 1, 2005 $ 2,694,284 $ 10,002,500 $ 12,696,784 New claims and/or estimate revisions 651,119 89,909 741,028 Claims payments (404,288) (8,499,410) (8,903,698) February 28, 2006 2,941,115 1,592,999 4,534,114 New claims and/or estimate revisions 362,161 1,489,000 1,851,161 Claims payments (502,075) (187,000) (689,075) February 28, 2007 $ 2,801,201 $ 2,894,999 $ 5,696,200 -70- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 13. SUBSEQUENT EVENTS The City issued Series 2007, $30,385,000 general obligation bonds in May 2007. The distribution of proceeds are as follows: $15,025,000 to partially finance the City's long-range capital improvement program, and $15,360,000 to advance refund the City's outstanding General Obligation Corporate Purpose bonds, Series 1997 & 1999. NOTE 14. CONTINGENCIES There are various claims and legal actions pending against the City for which provision has been made in the financial statements. At the present time, the City believes that the reserves established are sufficient so that the expected liability for these claims and legal actions will not materially exceed the amounts recorded in the financial statements. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of the expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. NOTE 15. JOINT VENTURES A. Northwestern University On January 28, 1985, the City adopted a Central Business Tax Increment City called the Downtown II Redevelopment Area, which consisted of 26 acres of contiguous land located in the northwestern portion of the central business City of the City. The City comprised eight blocks of land owned by private parties, Northwestern University, and the City at the date of adoption. The redevelopment plan was formulated in accordance with the Tax Increment City laws of the State of Illinois. In 1986, the City Council adopted a Statement of Understanding between the City and Northwestern University (Northwestern) concerning the development of approximately 22 acres of the Downtown II City as a joint venture. By this agreement, the City and Northwestern agreed to develop a Research Park (Park) in the 22-acre area contiguous to and adjoining a new Basic Industry Research Lab (BIRL) operated by Northwestern. -71- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 15. JOINT VENTURES — Continued A. Northwestern University - Continued The City and Northwestern formed a for -profit corporation known as TOPCORP to buy and hold land for park development. The City and Northwestern each acquired 50% of the stock and each was entitled to elect and replace three directors. At the same time, Research Park, Inc. (RPI) was incorporated as a wholly owned subsidiary of TOPCORP. The mission of RPI was to promote and market the park land to private developers. In 1996, TOPCORP and RPI were merged and the resultant entity renamed Northwestern University/Evanston Research Park, Inc. All of the existing management and loan agreements were assumed by the new corporation. As of December 31, 2003, the decision was made to dissolve the organization. The remaining assets of $27,500 are to be divided among the interested parties. The City's Corporation Counsel filed the necessary court documents to dissolve the organization, and it was completed on June 2006. There was no activity between December 31, 2002 and December 31, 2006, so there are no financial statements to report. B. Solid Waste Agency of Northern Cook County On March 28, 1988, the Evanston City Council authorized agreements providing for the City's participation in the Solid Waste Agency of Northern Cook County (Agency) and in the interim financing of that Agency. The Agency was planned and developed by the Northwest Municipal Conference, of which the City is a member. The agency is empowered to plan, finance, construct, and operate a solid waste disposal system. The 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 Executive Committee of the Agency consists of seven persons elected by the Board of Directors. Each person is entitled to one vote. The Executive Committee may take action not specifically reserved to the Board of Directors by the Act, the Agency agreement, or the bylaws. 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. -72- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 15. JOINT VENTURES — Continued B. Solid Waste Agency of Northern Cook County - Continued 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. Summary of Financial Position as of April 30, 2006: Current assets $ 6,421,875 Restricted assets 1,096,466 Property, plant, and equipment 13,997,538 Debt issuance costs, net 137.531 Total assets $ 21,653,410 Current liabilities $ 3,934,928 Long-term debt, net of unamortized discount 8,973,921 Invested in capital assets, net of related debt 4,223,617 Restricted for debt service, net of accrued interest 1,047,673 Unrestricted net assets 3,473,271 Total liabilities and fund equity $ 21,653,410 Summary of Revenues and Expenses for the Year Ended April 30, 2006: Total revenues $ 15,481,207 Total expenses (15,720,257) Net (loss) $ (239,050) Complete financial statements for the agency can be obtained at 1616 East Golf Road, Des Plaines, IL 60016. -73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 15. JOINT VENTURES — Continued C. Evanston Housing Corporation The City agreed to jointly participate with various lending institutions in a not -for -profit housing mortgage corporation by approval of the City Council on May 22, 1989. The purpose of the corporation is to lend mortgage funds to qualified, income eligible, first-time homebuyers in the City of Evanston. The 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 receivable and investments, less expenses. Interest is paid semiannually to the holders on a pro-rata basis based on the amount of each note held to the total outstanding notes. The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2006 are summarized as follows: Statement of Financial Position as of December 31, 2006: Cash and cash equivalents $ 1,695,090 Mortgage loans receivable 1,446,942 Total assets 3,142,032 Payables and accrued expenses 78,032 Notes payable 3,064,000 Total liabilities 3,142,032 Net Assets $ - IWAE CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 15. JOINT VENTURES — Continued C. Evanston Housing Corporation - Continued Statement of Activities for the Year Ended December 31, 2006: Total revenues Total operating expenses Excess of revenues over expenses $ 119,821 (119,821) The City provides the Corporation with office space and staff support on a cost reimbursement basis. Complete financial statements for the Corporation can be obtained in the City's Community Development Department from the Assistant Director, Housing Rehabilitation and Property Standards. NOTE 16. DEFERRED COMPENSATION PLAN The City of Evanston offers its elected officials and employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is administered by the ICMA Retirement Corporation. The plan, available to all City employees, permits them to defer a portion of their current salary to all future years. The deferred compensation is not available to the participants until termination, retirement, death, or an unforeseeable emergency occurs. The 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. Plan balance at February 28, 2007 $ 32.851.402 WRE CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS The City maintains two separate single -employer retirement plans established by state statute for the City's police officers and firefighters. The City also participates in the Illinois Municipal Retirement Fund (IMRF), a statewide multiple -employer public employee retirement system which acts as investment and administrative agent. The IMRF plan covers substantially all of the City's employees other than police officers and firefighters. The City 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 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. Illinois Municipal Retirement Fund A. Plan Description The City and Township's defined benefit pension plan, IMRF, provides retirement, disability, annual cost of living adjustments, and death benefits to plan members and beneficiaries. IMRF is an agent multiple employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523, or by accessing their website at www.imrf.org/pubs/pubs_homepage.htm. 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 years 2006 was 8.17% of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. IDIOM CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund - Continued B. Funding Status and Progress The City's total payroll for the calendar year ended December 31, 2006 was $54,340,375. Of this amount, $32,625,369 in payroll earnings were reported to and covered by the IMRF system. The Township's total payroll for the year ended December 31, 2005 was $314,044. Of this amount, $314,044 in payroll earnings were reported to and covered by the IMRF plan. C. Annual Pension Cost For December 31, 2006, the City's annual pension cost of $2,665,493 was equal to the City's required and actual contributions. The required contribution was determined as part of the December 31, 2004 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 effects of short-term volatility in the market value of investments over a five-year period. The assumptions used for the 2006 actuarial valuation were based on the 2002-2004 experience study. IMRF's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at December 31, 2006 was 26 years. -77- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS — Continued Illinois Municipal Retirement Fund - Continued C. Annual Pension Cost - Continued Three -Year Trend Information for IMRF - City Actuarial Valuation Annual Pension Date Cost (APC) 12/31/06 $ 2,665,493 12/31/05 2,399,228 12/31/04 1,173,858 Percentage of APC Net Pension Contributed Obligation 100% 100% 100% For December 31, 2005, the Township's annual pension cost of $20,476 was equal to the Township's required and actual contributions. The required contribution was determined as part of the December 31, 2003 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 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 2005 actuarial valuation were based on the 2002-2004 experience study. Three -Year Trend Information for IMRF - Township Actuarial Valuation Annual Pension Date Cost (APC) 12/31 /05 $ 20,476 12/31 /04 3,877 12/31 /03 3,767 Percentage of APC Net Pension Contributed Oblivation 100% 100% 100% -78- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS — Continued Police and Firefighters' Pension Plans D. Plan Descriptions The Police Pension Plan and Firefighters' Pension Plan are contributory, defined benefit public employee retirement plans administered by the City and a Board of Trustees for each Fund. All sworn City police officers and firefighters are participants in the plans. The plans do not issue stand-alone financial reports and they are not included in the report of a public employee retirement system or another entity. The City's payroll for police and firefighter employees covered by the plans for the year ended February 28, 2007 was $11,195,000 and $8,150,000, respectively. Participation in the plans at February 28, 2007 was: Police Firefighters' Retirees, disabled participants, and beneficiaries of deceased retirees currently receiving benefits 153 118 Active plan members 163 111 Total 316 229 Any police officer or firefighter who has creditable service of 20 years or more, has reached age 50, and is no longer in the service, is entitled to a yearly pension equal to one-half 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% of such salary for each additional year of service over 20 years, up to 30 years, and 1% of such salary for each additional year of such service over 30 years to a maximum limit of 75% of such salary. The firefighter pension is increased by 1/12 of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75% of such monthly salary. Firefighters' Police Pension Fund Pension Fund Actuarial assumptions: Investment rate of return 7.50% 7.50% Projected salary increases 4.50% 4.50% Attributable to inflation 4.00% 4.00% Attributable to seniority/merit 0.50% 0.50% SM CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans - Continued D. Plan Descriptions — Continued 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 officer and at the date of retirement or separation in the case of a firefighter. The amount of the benefit is a tabular percentage of such salary ranging from 15% for 10 years of service to 50% for 20 years of service. These benefit provisions and all other requirements are established by state statute. E. Summary of Significant Accounting Policies Basis of Accounting The Police and Firefighters' Pension Fund financial statements are prepared using the accrual basis of accounting. Plan member contributions are recognized when due 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 finance by investment income. Method Used to Value Investments 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. F. Contributions and Reserves 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 eight years of credited service in the case of police officers and 10 years in the case of firefighters. -80- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued F. Contributions and Reserves — Continued For employer contributions, the City's budget policy is to fund pension plans at the funding level recommended annually by the actuary. The General Fund is used to liquidate the net pension obligation. 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 (March 1, 2006) and are as follows: Police Firefighters' Annual required contribution $ 4,301,359 $ 3,921,530 Interest on net pension obligation 619,945 369,257 Adjustment to annual required contribution (532,961) (317,448) Annual pension cost 4,388,343 3,973,339 Contributions made (4,417,058) (3,513,682) Increase in net pension obligation (28,715) 459,657 Net pension obligation at March 1, 2005 8,265,927 4,923,431 Net pension obligation at February 28, 2006 $ 8,237,212 $ 5,383,088 The difference between the total amount funded and the amount to be funded, as actuarially determined, is recorded as the net pension obligation in the general long-term debt schedule. The total pension liability calculated as the net pension liability dates forward from fiscal year 1987-88. G. Concentration of Investments The Police Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. The Firefighters' Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government -guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. -81 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued H. Three -Year Trend Information — Pension Trust Funds Fiscal Annual Pension Year Ended Cost (APC) Police 2/28/06 $ 4,388,343 2/28/05 4,157,307 2/29/04 4,361,218 Percentage of Net Pension APC Contributed Obligation 106.25 % $ 8,237,212 73.87 $ 8,265,927 107.87 7,330,143 Firefighters' 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. WPM CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued 1. Pensions - Detailed Statement of Net Assets Assets Cash and short-term investments Receivables Accrued interest Due from other funds Total Receivables Investments, at fair value U.S. Government obligations Common stock Mutual funds Total Investments Total Assets Liabilities Vouchers payable Total Liabilities Net assets held in trust for pension benefits Firefighters' Pension Police Total Pension Pension $ 3,927,555 $ 3,400,961 $ 7,328,516 171,803 286,565 458,368 1,333.949 1,487,293 2,821,242 1,505,752 1,773,858 3,279,610 19,587,682 30,531,510 50,119,192 11,651,855 - 11,651,855 7,113,295 26,137,101 33,250,396 38,352,832 56,668,611 95,021,443 43,786,139 61,843,430 105,629,569 3,383 3,079 6,462 3,383 3,079 6,462 $ 43,782,756 $ 61,840,351 $ 105,623,107 -83- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. 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 $ 3,730,660 $ 4,371,945 $ 8,102,605 Plan members 809,812 1,130,769 1,940,581 Total Contributions 4,540,472 5,502,714 10,043,186 Investment income Net appreciation in fair value of investments 1,525,720 2,730,492 4,256,212 Interest 1,566,410 1,746,750 3,313,160 Total investment income 3,092,130 4,477,242 7,569,372 Less investment expense 199,597 115,010 314,607 Net investment income 2,892,533 4,362,232 7,254,765 Total Additions 7,433,005 9,864,946 17,297,951 Deductions Benefits 4,282,484 6,288,733 10,571,217 Refunds of contributions - 102,448 102,448 Administrative expense 21,191 34,268 55,459 Total Deductions 4,303,675 6,425,449 10,729,124 Net increase 3,129,330 3,439,497 6,568,827 Net assets held in trust for pension benefits Beginning of year 40,653,426 58,400,854 99,054,280 End of year $ 43,782,756 $ 61,840,351 $ 105,623,107 -84- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans — Continued K. Pensions - Actuarial Valuations 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: Firefighters' Police Pension Pension Fund Fund Valuation date March 1, 2006 March 1, 2006 Actuarial cost method Projected Unit Credit Projected Unit Credi Amortization method Remaining amortization period Level Percentage of payroll, closed period 27 Years Level Percentage of payroll, closed perio 27 Years Asset valuation method Fair Market value Fair Market value 5.161E This page has been intentionally left blank. REQUIRED SUPPLEMENTARY INFORMATION CITY OF EVANSTON, ILLINOIS Firefighters' Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund Schedules of Funding Progress Required Supplementary Information February 28, 2007 Actuarial Actuarial Accrued Unfunded Percentage Actuarial Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets Projected Unit Credit (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) ( c) ((b-a)/c) Firefighters' Pension 3/I/2006 $ 40,653,428 $ 84,413,071 43,759,643 48.16% $ 8,150,000 536.93% 3/l/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% 3/l/2003 33,905,858 63,214,068 29,308,210 53.64% 7,493,000 391.14% 3/I/2002 34,837,194 58,982,455 24,145,261 59.06% 7,045,000 342.73% 3/1/2001 33,931,179 54,983,667 21,052,488 61.71% 6,468,000 325.49% 3/l/2000 33,150,978 51,480,156 18,329,178 64.40% 6,020,000 304.47% 3/1/1999 30,669,327 48,932,007 18,262,680 62.68% 5,720,000 319.28% 3/1/1998 28,716,954 45,707,591 16,990,637 62.83% 5,530,000 307.24% 3/1/1997 25,390,647 43,210,556 17,819,909 58.76% 5,409,000 329.45% Police Pension 3/I/2006 $ 58,400,853 S 112,448,880 54,048,027 5194% S 11,195,000 482.79% 3/I/2005 55,269,914 106,426,694 51,156,780 5193% 10,642,000 480.71% 3/I/2004 54,469,873 101,824,016 47,354,143 53 49% 10,217,000 463.48% 3/1/2003 48,533,981 98,307,729 49,773,748 49.37% 10,074,000 494.08% 3/l/2002 50,171,007 90,436,150 40,265,143 55.48% 9,945,000 404.88% 3/1/2001 49,077,641 85,727,076 36,649,235 57.25% 9,443,000 388.11% 3/l/2000 47,127,865 80,142,075 33,014,210 58.81% 9,005,000 366,62% 3/1/1999 43,874,772 73,577,492 29,702,720 59.63% 8,424,000 352,60% 3/1/1998 40,090,491 69,535,512 29,445,021 57.65% 8,184,000 359.79% 3/1/1997 35,592,043 65,972,531 30,380,488 53.95% 7,625,000 398,43% Illinois Municipal Retirement Fund (City) 12/31/2006 $ 87,758,900 $ 82,928,874 (4,830,026) 105.82% S 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 12/31/2002 76,316,234 64,062,155 (12,254,079) 119.13% 26,693,089 12/31/2001 76,203,038 59,669,590 (16,533,448) 127.71% 25,433,926 12/31/2000 70,365,652 54,227,258 (16,138,394) 129.76% 23,806,923 12/31/1999 61,752,937 49,606,631 (12,146,306) 124.49% 22,472,238 12/31/1998 50,646,948 46,788,407 (3,858,541) 108.25% 21,639,257 12/31/1997 43,588,102 44,482,424 894,322 97.99% 20,561,629 4.35% Illinois Municipal Retirement Fund (Township) 12/31/2005 $ 413,112 $ 253,244 (159,868) 163.13% S 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 12/31/2001 817,333 565,556 (251,777) 144.52% 298,428 12/31/2000 851,413 529,330 (322,083) 160.85% 358,218 12/31/1999 894,898 684,060 (210,838) 130.82% 378,974 12/31/1998 715,669 559,842 (155,827) 127.83% 369,200 12/31/1997 747,332 682,880 (64,452) 109.44% 386,400 12/31/1996 622,085 587,853 (34,232) 105.82% 408,470 86 - CITY OF EVANSTON, ILLINOIS Firefighters and Police Pension Funds Schedules of Employer Contribution Required Supplementary Information February 28, 2007 Firefighters' Pension Fund Annual Tax Levy Required City's Percentage Year Contribution Contribution Contributed 2006 $ 3,921,530 $ - N/A 2005 3,317,158 3,459,626 104.29% 2004 3,041,911 3,398,340 111.72% 2003 2,685,046 2,690,742 100.21% 2002 2,355,236 2,374,744 100.83% 2001 2,209,466 2,324,407 105.20% -87- Police Pension Fund Annual Required City's Percentage Contribution Contribution Contributed $ 4,301,359 $ - N/A 4,071,765 4,295,601 105.50% 4,274,043 4,271,102 99.93% 3,505,934 3,522,862 100.48% 3,224,902 3,252,113 100.84% 2,990,038 3,038,432 101.62% 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, 2007 Original and Final Budget Actual Variance Revenues Taxes $ 41,033,700 $ 42,276,789 $ 1,243,089 Licenses and permits 7,872,400 8,060,996 188,596 Intergovernmental 15,267,300 16,338,153 1,070,853 Charges for services 6,757,800 7,167,364 409,564 Fines 4,592,000 4,029,228 (562,772) Investment income 400,000 777,165 377,165 Miscellaneous 5,404,100 4,949,769 (454,331) Total Revenues 81,327,300 83,599,464 2,272,164 Expenditures General management and support 13,556,400 12,824,237 732,163 Public safety 29,658,200 30,273,200 (615,000) Public works 12,499,700 12,474,246 25,454 Health and human resource development 5,271,200 5,050,412 220,788 Recreation and cultural opportunities 16,642,600 16,664,959 (22,359) Housing and economic development 2,957,000 3,093,935 (136,935) Pensions 5,024,700 5,645,241 (620,541) Total Expenditures 85,609,800 86,026,230 (416,430) (Deficiency) of Revenues (under) Expenditures (4,282,500) (2,426,766) 1,855,734 Other Financing Sources (Uses) Operating transfers in (out) Motor Fuel Tax Fund 772,500 772,500 - Housing Fund 31,800 31,800 - Central Business Tax Increment District 325,000 325,000 - Washington National TIF Debt Service Fund 144,800 144,800 - Southwest TIF II Debt Service Fund 135,000 135,000 - Southwest TIF I Debt Service Fund 23,000 23,000 - Capital Improvement Fund 100,000 100,000 - Fleet Fund - (300,000) (300,000) Special Assessment Capital Project Fund 31,800 31,800 - Water Fund 2,693,600 2,693,600 - General Obligation Debt Service Fund (175,000) (175,000) - 4,082,500 3,782,500 (300,000) Excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses $ (200,000) 1,355,734 $ 1,555,734 Fund Balance Beginning of year End of year 33,979,826 $ 35,335,560 - 88 - CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 1. DIGEST OF CHANGES - IMRF The actuarial assumptions used to determine the actuarial accrued liability for 2006 are based on the 2002- 2004 Experience Study. The principal changes were: - The 1994 Group Annuity Mortality implemented - For regular members, fewer normal and early retirements are expected to occur. NOTE 2. CONVERSION FROM GAAP BASIS TO BUDGETARY BASIS Adjustments necessary to convert City revenues and expenditures for the year ended February 28, 2007 on the GAAP basis to the budgetary basis are presented below: General Fund Revenues GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 83,587,596 Increase (decrease) due to budgeting property taxes as revenue in the year of levy 11,868 Budgetary Basis Revenues $ 83,599,464 Expenditures GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 86,008,485 Increase (decrease) due to Encumbrances - March 1, 2006 (62,643) Encumbrances - February 28, 2007 80,388 Budgetary Basis Expenditures $ 86,026,230 -89- This page has been intentionally left blank. GOVERNMENTAL FUND TYPES 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. City Funds 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. 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. Mayor's Special Housing - to account for costs associated with housing -related programs of the City. Affordable Housing - to account for costs associated with housing -related programs of the City. 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. 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. Community Development Loan - to account for residential rehabilitation loans to residents. 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. Continued Special Revenue Funds - Continued 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. Township Funds Town - to account for general adminstrative services. General Assistance - to account for the assistance given to persons and/or families to meet their basic living expenses. Debt Service Funds 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. 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. 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. West Evanston Tax Increment District - accumulated monies for the payments on redevelopment project for this special taxing district. Continued This page has been intentionally left blank. 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. Capital Improvements - to account for the City of Evanston capital improvement program. The program includes, but is not limited to, improvements to public buildings, the paving of city streets, and the improvement and development of recreation facilities. Financing is provided principally by grants and general obligation bond proceeds. 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. Special Assessment - to account for capital improvements financed by special assessments on property holder and public benefit contributions from the City. CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet February 28, 2007 Assets Cash and equivalents Investments Receivables Property taxes (net of allowance) Current year levy Notes Accounts Allowance Special assessments Accrued interest Other Due from other governments Due from other funds Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accrued payroll Other Due to other governments Due to other funds Unearned revenues Total Liabilities Fund Balances Reserved for notes receivable Reseved for debt service Unreserved Capital projects Undesignated Total Fund Balances Total Liabilities and Fund Balances Special Revenue Emergency Motor Economic Telephone Neighborhood Fuel Tax Development System Library Improvement $ 1,918,731 $ 1,348,105 $ 2,344,787 $ 469,297 $ 82,498 - - - 2,336,748 - - - 3,921 738 43,254 150,310 - - 188,615 - - - 1,113 10,381 - - - $ 2,109,197 $ 1,401,740 $ 2,495,097 $ 2,809,966 $ 82,498 $ 161,989 $ 66,804 $ 387,746 $ - $ - - 3,332 8,017 - - 37,261 1,240 - - 161,989 107,397 397,003 - - 1,947,208 - - 2,809,966 - 1,294,343 2,098,094 - 1,947,208 1,294,343 2,098,094 2,809,966 $ 2,109,197 $ 1,401,740 $ 2,495,097 $ 2,809,966 $ 82,498 82,498 82,498 Weliz Special Revenue Mayor's Community Community Special Affordable Development Development Housing Housing HOME Block Grant Loan $ 192,536 $ 130,000 $ 346,741 $ - $ 700,787 $ Special Service Employer Total District Pension City No.4 Contribution Funds $ - $ 7,533,482 2,336,748 - - - - - 248,141 7,068,944 7,317,085 1,369,562 2,690,489 12,799 1,470,889 - - 5,543,739 - - - - - 3,921 8,000 - - - - - 202,302 - - - 70,875 - - 259,490 7,100 5,155 - 23,749 $ 1,570,098 $ 130,000 $ 3,037,230 $ 90,774 $ 2,176,831 $ 248,141 $ 7,068,944 $ 23,220,516 $ 11,667 $ - $ - $ 67,770 $ 6,474 $ - $ - $ 702,450 - - - 4,757 - - 16,106 - 3,141 - - 3,141 289,886 - 651 - - 290,537 7,100 5,448 1,113 19,221 2,815,013 2,886,396 - - - 134,137 4,253,931 4,388,068 11,667 - 296,986 77,975 11,379 153,358 7,068,944 8,286,698 1,369,562 - 2,690,489 12,799 1,470,889 - - 5,543,739 - - - - - - - 4,757,174 188,869 130,000 49,755 - 694,563 94,783 - 4,632,905 1,558,431 130,000 2,740,244 12,799 2,165,452 94,783 - 14,933,818 $ 1,570,098 $ 130,000 $ 3,037,230 $ 90,774 $ 2,176,831 $ 248,141 $ 7,068,944 $ 23,220,516 Continued I &IIC CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued 2/28/2007 and 03/31/06 for City and Township respectively Assets Cash and equivalents Investments Receivables Property taxes (net of allowance) Current year levy Notes Accounts Allowance Special assessments Accrued interest Other Due from other governments Due from other funds Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accrued payroll Other Due to other governments Due to other funds Unearned revenues Total Liabilities Fund Balances Reserved for notes receivable Reseved for debt service Unreserved Capital projects Undesignated Total Fund Balances Total Liabilities and Fund Balances Special Revenue Total Town General Township Fund Assistance Funds Total S 430,750 $ 671,704 $ 1,102,454 $ 8,635,936 - - - 2,336,748 227,926 599,095 4,912 17,853 - S 676,529 $ 1,275,711 827,021 8,144,106 - 5,543,739 - 3,921 4,912 207,214 - 259,490 17,853 41,602 $ 1,952,240 $ 25,172,756 S 54,105 $ 38,746 $ 92,851 $ 795,301 - - - 16,106 - - 3,141 127,660 127,660 418,197 - 17,853 17,853 2,904,249 209,947 549,936 759,883 5,147,951 264,052 734,195 998,247 9,284,945 5,543,739 - - 4,757,174 412,477 541,516 953,993 5,586,898 412.477 541,516 953,993 15,887,811 $ 676,529 $ 1,275,711 $ 1,952,240 $ 25,172,756 -92- Debt Service 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 $ 3,365,491 $ 35,162 $ 5,772,510 $ 649,863 $ 3,024,766 $ 3,640,130 $ 160,030 $ 16,931 $ 16,664,883 - - - - - 1,000,000 - - 1,000,000 7,722,007 432,352 6,819,793 588,174 1,016,540 1,749,194 101,738 18,259 18,448,057 20,984 - - - - 11,370 - 32,354 - - - - - 19,221 - - 19,221 $ 11,108,482 $ 467,514 $ 12,592,303 $ 1,238,037 $ 4,041,306 $ 6,419,915 $ 261,768 $ 35,190 $ 36,164,515 $ 1,931 $ - $ 1,093 $ $ - $ 15,052 $ - $ - $ 18,076 - - 170 - - - 10,381 10,551 4,602,044 230,656 3,293,818 314,747 503,534 929,236 52,992 11,328 9,938,355 4,603,975 230,656 3,295,081 314,747 503,534 944,288 52,992 21,709 9,966,982 6,504,507 236,858 9,297,222 923,290 3,537,772 5,475,627 208,776 13,481 26,197,533 6,504,507 236,858 9,297,222 923,290 3,537,772 5,475,627 208,776 13,481 26,197,533 $ 11,108,482 $ 467,514 $ 12,592,303 $ 1,238,037 $ 4,041,306 $ 6,419,915 $ 261,768 $ 35,190 $ 36,164,515 Continued -93- This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued February 28, 2007 Assets Cash and equivalents Investments Receivables Property taxes (net of allowance) Current year levy Notes Accounts Allowance Special assessments Accrued interest Other Due from other governments Due from other funds Total Assets Central Business Tax Capital Increment Improvements District Capital Projects Washington National Tax Increment Special District Assessment Total $ 9,709,000 $ 4,302,980 $ 198,542 $ 2,599,278 $ 16,809,800 2,996,186 - - - 2,996,186 96,649 - - 96,649 (96,649) - - (96,649) • - 906,547 906,547 44,561 48,914 - - 93,475 141,800 - - - 141,800 35,202 - - 3,517 38,719 $ 12,926,749 $ 4,351,894 $ 198,542 $ 3,509,342 $ 20,986,527 Liabilities and Fund Balances Liabilities Vouchers payable $ 664,162 $ - $ 6,771 $ $ 670,933 Accrued payroll - - - - - Other - - - Due to other governments - - - - Due to other funds 200,549 - 450 80 201,079 Unearned revenues - - - 906,547 906,547 Total Liabilities 864,711 - 7,221 906,627 1,778,559 Fund Balances Reserved for notes receivable - - - - - Reseved for debt service - - - - - Unreserved Capital projects 12,062,038 4,351,894 191,321 2,602,715 19,207,968 Undesignated - - - - Total Fund Balances 12,062,038 4,351,894 191,321 2,602,715 19,207,968 Total Liabilities and Fund Balances $ 12,926,749 $ 4,351,894 $ 198,542 $ 3,509,342 $ 20,986,527 Total Nonmajor Governmental Funds $ 42,110,619 6,332,934 26,592,163 5,640,388 (96,649) 906,547 129,750 349,014 259,490 99,542 $ 82,323,798 $ 1,484,310 16,106 3,141 418,197 3,115,879 15,992,853 21,030,486 5,543,739 26,197,533 23,965,142 5,586,898 61,293,312 $ 82,323,798 Concluded - 94 - CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Year ended February 28, 2007 Special Revenue Emergency Motor Economic Telephone Neighborhood Fuel Tax Development System Library Improvement Revenues Taxes S - $ 1,826,670 $ 1,052,991 $ - S 40,000 Special assessments Intergovernmental 2,139,089 - - Investment income 119,906 19,166 29,433 312,381 SSI reimbursement - - - Emergency assistance reimbursement - - Miscellaneous - - 9,135 7,608 Total Revenues 2,258,995 1,845,836 1,091,559 319,989 40,000 Expenditures Current General management and support - - - - - Public safety - 1,314,307 Public works 1,845,900 Health and human resource development - - Recreation and cultural opportunities - 1,000 Housing and economic development 1,021,385 Debt service Principal - Interest Fiscal agent fees Capital outlay - - - Total Expenditures 1,845,900 1,021,385 1,314,307 1,000 - Excess (Deficiency) of Revenues Over (Under) Expenditures 413.095 824,451 (222.748) 318989 40,000 Other Financing Sources (Uses) Proceeds from sale of bonds - - - - Escrow funding Premiums and discount - Transfers in (out) General Fund (772,500) Community Development Block Grant - Community Development Loan Town Fund General Assistance Fund General Obligation Debt Service Fund Central Business Tax Increment District Washington National Tax Increment District Special Assesstment Capital Project Water Maple Avenue Garage (650,000) Sherman Garage Total Other Financing Sources (Uses) (772,500) (650,000) - - Net Change in Fund Balances (359,405) 174,451 (222,748) 318,989 40,000 Fund Balances -Beginning of Year 2,306,613 1,119,892 2,320,842 2,490,977 42,498 Fund Balances - End of Year S 1,947,208 $ 1,294,343 $ 2,098,094 $ 2,809,966 $ 82,498 95 - Mayor's Special Affordable Housing Housing $ $ 90,000 $ 12,944 - 75,664 40,000 88,608 130,000 Special Revenue Special Community Community Service Employer Total Development Development District Pension City HOME Block Grant Loan No. 4 Contribution Funds $ $ $ 253,732 $ 8,102,605 $ 11,365,998 28,739 2,677,217 - - 4,845,045 16,978 - 11,309 190 522,307 92 10,691 - - 143,190 45,809 2,687,908 11,309 253,922 8,102,605 16,876,540 8,102,605 9,416,912 - - 1,845,900 - - - - - 1,000 44,738 556,701 2,692,229 29,768 245,000 4,589,821 44,738 - 556,701 2,692,229 29,768 245,000 8,102,605 15,853,633 43,870 130,000 (510,892) (4,321) (18.459) 8.922 - 1,022,907 (31,800) - - (804,300) - (4,321) (4,321) 4,321 4,321 (650,000) (31,800) - - 4,321 (4,321) - (1,454,300) 12,070 130,000 (510,892) - (22,780) 8,922 (431,393) 1,546,361 - 3.251.136 12.799 2.188.232 85.861 15,365,211 1,558,431 $ 130,000 $ 2,740,244 $ 12,799 $ 2,165,452 $ 94,783 $ $ 14,933,818 Continued -96- CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Continued Year Ended February 28, 2007 and March 31, 2006 for City and Township respectively Special Revenue Total Town General Township Fund Assistance Funds Total Revenues Taxes $ 316,625 $ 884,492 $ 1,201,117 $ 12,567,115 Special assessments - - Intergovernmental 54,833 - 54,833 4,899,878 Investment income 7,538 9,619 17,157 539,464 SSI reimbursement - 3,047 3,047 3,047 Emergency assistance reimbursement 46,084 46,084 46,084 Miscellaneous - - 143,190 Total Revenues 378,996 943,242 1,322,238 18,198,778 Expenditures Current General management and support 213,471 890,170 1,103,641 1,103,641 Public safety 9,416,912 Public works 1,845,900 Health and human resource development - Recreation and cultural opportunities 1,000 Housing and economic development 4,589,821 Debt service Principal Interest Fiscal agent fees Capital outlay - - - - Total Expenditures 213,471 890,170 1,103,641 16,957,274 Excess (Deficiency) of Revenues Over (Under) Expenditures 165,525 53,072 218,597 1,241,504 Other Financing Sources (Uses) Proceeds from sale of bonds - Escrow funding Premiums and discount Transfers in (out) General Fund (804,300) Community Development Block Grant (4,321) Community Development Loan - 4,321 Town Fund 125,000 125,000 125,000 General Assistance Fund (125,000) (125,000) (125,000) General Obligation Debt Service Fund Central Business Tax Increment District Washington National Tax Increment District - Special Assesstment Capital Project - Water - Maple Avenue Garage - (650,000) Sherman Garage Total Other Financing Sources (Uses) (125,000) 125,000 - (1,454,300) Net Change in Fund Balances 40,525 178,072 218,597 (212,796) Fund Balances -Beginning of Year 371,952 361444 735,396 16,100,607 Fund Balances - End of Year $ 412,477 $ 541,516 $ 953,993 $ 15,887,811 -97- Debt Service 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 $ 8,950,580 $ 444,641 $ 8,875,934 $ 652,133 $ 1,286,615 $ 1,930,695 $ 132,830 $ 30,983 $ 22,304,411 312,256 343 449,651 37,157 153,729 248,671 1,916 19 1,203,742 9,262,836 444,984 9,325,585 689,290 1,440,344 2,179,366 134,746 31,002 23,508,153 219 3,209 105,201 7,581 7,581 4,407 10,204 17,521 155,923 200,000 600,000 - 800,000 5,795,000 265,000 3,815,000 250,000 425,000 980,000 11,530,000 4,003,572 170,563 358,544 42,750 268,620 2,082,489 - 6,926,538 205,970 - 230,509 - - 80,382 516,861 10,004,761 438,772 4,709,254 900,331 701,201 3,147,278 10,204 17,521 19,929,322 (741.925) 6.212 4,616.331 (211,041) 739.143 (967.912) 124.542 13.481 3,578,831 14,430,000 - - - 14,430,000 (14,367,683) (14,367,683) 120,311 120,311 175,000 (325,000) (23,000) (135,000) (144,800) (452,800) 845,315 845,315 (845,315) - (845,315) 337,500 337,500 (4,502,000) (4,502,000) (727,500) (727,500) 695,128 - (5,672,315) (23,000) (135,000) (26,985) - - (5,162,172) (46,797) 6,212 (1,055,984) (234,041) 604,143 (994,897) 124,542 13,481 (1,583,341) 6,551,304 230,646 10,353,206 1,157,331 2,933,629 6,470,524 84,234 - 27,780,874 $ 6,504,507 $ 236,858 $ 9,297,222 $ 923,290 $ 3,537,772 $ 5,475,627 $ 208,776 $ 13,481 $ 26,197,533 Continued 98 - This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Continued Year ended February 28, 2007 Revenues Taxes Special assessments Intergovernmental Investment income SSI reimbursement Emergency assistance reimbursement Miscellaneous Total Revenues Expenditures Current General management and support Public safety Public works Health and human resource development Recreation and cultural opportunities Housing and economic development Debt service Principal Interest Fiscal agent fees Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Proceeds from sale of bonds Escrow funding Premiums and discount Transfers in (out) General Fund Community Development Block Grant Community Development Loan Town Fund General Assistance Fund General Obligation Debt Service Fund Central Business Tax Increment District Washington National Tax Increment District Special Assessment Capital Project Water Maple Avenue Garage Sherman Garage Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances -Beginning of Year Fund Balances - End of Year Central Business Tax Capital Increment Improvements District Capital Projects Washington National Tax Increment Special District Assessment Total Nonmajor Governmental Total Funds $ - $ - $ - $ - $ - S 34,871,526 565,204 565,204 565,204 163,957 - - 163,957 5,063,835 778,274 200,301 91,339 104,749 1,174,663 2,917,869 - - - - 3,047 - - 46,084 435,478 - 1 435,479 578,669 1,377,709 200,301 91,339 669,954 2,339,303 44,046,234 57,784 66,000 314,013 12,487 450,284 1,709,848 - - - - - 9,416,912 - 1,845,900 800,000 1,000 4,589,821 11,530,000 6,926,538 - 516,861 10.770.373 8.215.772 18,986,145 18,986,145 10,828,157 66,000 8,529,785 12A87 19,436,429 56,323,025 (9,450,448) 134,301 (8,438,446) 657,467 (17,097,126) (12,276,791) 9,785,000 - 505,000 10,290,000 24,720,000 - - - (14,367,683) 75,719 (337) 75,382 195,693 (100,000) (31,800) (131,800) (1,388,900) (4,321) 4,321 125,000 (125,000) (337,500) (337,500) (337,500) 845,315 (845,315) 337,500 (2,000,000) (2,000,000) (2,000,000) - (5,152,000) 1,486,672 - 1,486,672 759,172 7,760,719 - 1,486,672 135,363 9,382,754 2,766,282 (1,689,729) 134.301 (6,951,774) 792,830 (7,714,372) (9,510,509) 13,751,767 4,217,593 7,143,095 1.809,885 26,922,340 70,803,821 $ 12,062,038 $ 4,351,894 $ 191321 $ 2,602,715 $ 19,207,968 $ 61,293,312 Concluded -99- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Taxes Property Current year levy Prior year levy Total Property Taxes Personal Property Replacement Tax Other Taxes Auto rental Sales - home rule Utility State use Athletic contest Cigarette Evanston motor fuel Real estate transfer Poured liquor Parking Total Other Taxes Total Taxes Original and Final Budget Actual $ 17,091,000 $ 16,986,796 25,000 307,366 17,116,000 17,294,162 578,500 1,039,009 34,000 34,806 5,500,000 5,651,328 8,550,000 8,108,008 750,000 953,273 500,000 578,871 550,000 455,873 300,000 266,997 4,055,200 4,500,474 1,600,000 1,941,652 1,500,000 1,452,336 23,339,200 23,943,618 41,033,700 42,276,789 Variance (104,204) 282,366 178,162 460,509 806 151,328 (441,992) 203,273 78,871 (94,127) (33,003) 445,274 341,652 (47,664) 604,418 1,243,089 Continued -100- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Original and Final Budget Licenses and Permits Vehicle licenses $ 2,200,000 Business licenses 90,000 Long-term care licenses 113,000 Rooming house licenses 160,000 Pet licenses 40,000 Farmers' market licenses 27,700 Contractors' licenses 80,000 Other licenses - Building permits 3,065,000 Plumbing permits 160,000 Electrical permits 175,000 Elevator permits 40,000 Signs and awning permits 10,000 Combustion equipment permits 180,000 Commercial driveway permits 700 Other permits 300,000 Liquor licenses 290,000 Fire alarm permit fees - Cable franchise fee 660,000 Nicor franchise fee 60,000 Northwestern/Centel easement 40,000 Residents' parking permits 120,000 Visitor's parking permits 14,000 Sign license fee 32,000 Alarm panel franchise fee 14,000 Plat approval and sign appeal fees 1,000 Total Licenses and Permits 7,872,400 Actual 2,209,464 105,868 69,540 180,908 36,473 24,365 88,000 960 3,062,633 163,507 181,209 45,841 12,694 204,772 315,401 324,803 90 735,090 85,935 47,000 116,288 13,871 32,684 3,600 8,060,996 11 Variance 9,464 15,868 (43,460) 20,908 (3,527) (3,335) 8,000 960 (2,367) 3,507 6,209 5,841 2,694 24,772 (700) 15,401 34,803 90 75,090 25,935 7,000 (3,712) (129) 684 (10,400) (1,000) 188,596 Continued - 101 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Original and Final Budget Actual Variance Intergovernmental - Revenue from Other Agencies Health Department SEED Grant S - S 147,398 S 147,398 Preventive health block grant 30,600 28,000 (2,600) fire department training 600 6,434 5,834 Illinois department health information - 25 25 Illinois state health department basic services grant 63,300 76,181 12,881 Bio-terrorrism grant 76,000 - (76,000) Family planning grant 54,500 50,000 (4,500) Hearing and vision grant 8,000 8,000 - Clean air grants - 20,117 20,117 ICJIA grant - victim 60,000 - (60,000) Other federal aid 14,700 55,901 41,201 Violent crime victim assistance grant 24,700 27,458 2,758 Federal police grant 56,000 - (56,000) Civil defense grants 20,000 26,391 6,391 Retailer and service occupation tax 8,200,000 8,695,104 495,104 State income tax 5,500,000 6,186,428 686,428 State highway maintenance 130,000 93,003 (36,997) District 65 dental 1,500 1,500 - Commission on Aging grant 41,600 46,592 4,992 Other state / county grants 300,000 105,266 (194,734) Police training grant 8,000 31,289 23,289 Dental sealants grant 2,800 4,183 1,383 Lead grant 2,000 1,373 (627) Federal grant / Aid - 144,025 144,025 Illinois Tobacco Free Community 25,000 28,188 3,188 Art council - 35,030 35,030 Summer food inspections - 800 800 Kid care agreement 11,300 5,599 (5,701) HUD emergency shelter grant 87,000 89,222 2,222 Leadbase paint control grant 200,000 77,624 (122,376) Genetic education grant 10,200 17,000 6,800 Tanning parlor inspection - 350 350 Prostate cancer awareness - 12,039 12,039 Family case management grant 190,600 281,013 90,413 Immunization Innitiation 2,900 - (2,900) Reach learn grow 111,000 - (111,000) Teen parent service program 35,000 33,450 (1,550) Vector prevention grant - 3,000 3,000 Evanston Township - Housing - 170 170 Total Intergovernmental - Revenue from Other Agencies 15,267,300 16,338,153 1,070,853 Continued -102- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Charges for Services Recreation Recreation - program Total Recreation Library Film rentals Books, lost and paid Reserves Miscellaneous revenues Non-resident cards Copy machine charges Library meeting room rentals Rental income State library per capita grant CD-ROM software rentals Total Library Original and Final Budget Actual Variance S 4,244,200 S 4,352,943 S 108,743 4,244,200 4,352,943 108,743 58,000 37,119 (20,881) 23,000 14,076 (8,924) 6,500 7,196 696 2,500 736 (1,764) 4,000 2,890 (1,110) 26,000 22,646 (3,354) 9,000 7,195 (1,805) - 29,700 29,700 92,700 91,128 (1,572) 2,000 591 (1,409) 223,700 213,277 (10,423) Continued -103- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Original and Final Budget Actual Charges for Services Other Service Charges Family planning clinic S - 1,240 Dental clinic fees and check up fees 68,000 96,219 Venereal disease program - Skokie 2,250 750 Birth and death records 132,000 132,472 TB nursing services 12,000 7,600 Flu and pneumonia program 23,500 21,371 Health clinic fees - immunizations 4,200 6,799 Health clinic fees - sexually transmitted disease 8,000 - Health clinic fees - TB 3,500 3,168 Health clinic fees - lab 12,000 9,020 Health clinic fees - food establishment 150,000 162,608 Health clinic fees - school physicals 2,000 1,305 S.T.D.O. and S.T.D.E. 6,000 8,157 Dental check up 9,000 8,390 Emergency dental exam 100 210 X-Ray - 80 Amalgam filling 400 10 Resin filling 4,500 5,614 Sedative filling 50 50 Extraction 100 570 Pulpotomy 800 1,495 Sealant office visit 700 586 Additional sealant 100 80 Temporary license fee 3,300 4,096 Food delivery vehicle 6,500 6,196 Scavenger truck 2,300 2,340 Beverage snack vending machine 22,000 25,236 Tobacco license 13,000 11,125 Funeral director license - 6,660 Temporary funeral direct license - 5,714 Ambulance services 570,000 721,004 Towing charges - (12,948) Weights and measures examination 1,000 350 Senior taxi coupon sales 88,000 101,733 Recycling - material sales - 970 Background check daycare providers - 480 Police report fees 15,000 17,487 Child health 1,700 - Beekeeper licenses - 25 S Variance 1,240 28,219 (1,500) 472 (4,400) (2,129) 2,599 (8,000) (332) (2,980) 12,608 (695) 2,157 (610) 110 80 (390) 1,114 470 695 (114) (20) 796 (304) 40 3,236 (1,875) 6,660 5,714 151,004 (12,948) (650) 13,733 970 480 2,487 (1,700) 25 Continued -104- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Original and Final Budget Charges for Services - Continued Other Service Charges - Continued Fire report fees S 900 Fire cost recovery charges 5,000 Fire building inspection 8,000 Other service charges - Condo conversion application 70,000 Zoning fees 40,000 Alarm panel subscription fees 100,000 Skokie animal boarding fees 1,000 Passport execution fees 10,000 Sanitation classes and charges 55,000 Wood recycling - Plan review 10,000 Recycling service charge and penalty 828,000 Total Other Service Charges 2,289,900 Total Charges for Services 6,757,800 Fines Ticket fines 3,790,000 Regular fines 250,000 Housing code violations - Permit penalty fees 25,000 False alarm panel fines - fire 55,000 False alarm panel fines - police 90,000 Administrative adjudication 95,000 Library fines 172,000 Boot release fees 115,000 Total Fines 4,592,000 S Actual 1,316 9,351 4,875 2,252 48,450 58,284 158,547 102 10,337 71,512 10,881 9,358 857,617 2,601,144 7,167,364 3,174,170 206,088 2,702 42,210 88,805 69,615 185,176 182,477 77,985 4,029,228 E Variance 416 4,351 (3,125) 2,252 (21,550) 18,284 58,547 (898) 337 16,512 10,881 (642) 29,617 311,244 409,564 (615,830) (43,912) 2,702 17,210 33,805 (20,385) 90,176 10,477 (37,015) (562,772) Continued - 105 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Original and Final Budget Actual Variance Investment Income $ 400,000 $ 777,165 $ 377,165 Miscellaneous Charges to Other Funds Charges to Water for administrative expenses 1,202,400 1,202,400 - Economic Development 400,000 400,000 - Maple Garage 43,000 43,000 - Emergency Telephone System 179,000 179,000 - Community Development Block Grant 909,500 880,500 (29,000) HOME 39,300 41,772 2,472 Sewer 543,600 543,600 - Motor Vehicle Parking System 711,500 711,500 - Fleet Services 171,500 171.500 - Total Charges to Other Funds 4,199,800 4,173,272 (26,528) Miscellaneous Other Revenues Payments in lieu of taxes 27,000 25,000 (2,000) Sales and rentals of property 102,900 62,901 (39,999) Compensation for damage to City property 65,000 43,685 (21,315) Parking permits - Ryan Field 12,000 17,141 5,141 Miscellaneous 997,400 627,770 (369,630) Total Other Revenues 1,204,300 776,497 (427,803) Total Miscellaneous 5,404,100 4,949,769 (454,331) Total Revenues $ 81,327,300 $ 83,599,464 $ 2,272,164 Concluded MGM CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 General Management and Support City Council City Manager City Clerk Law Department Human Resources Finance Facilities management Miscellaneous operating requirements Total General Management and Support Public Safety Emergency services and disaster assistance Police Fire Total Public Safety Public Works Municipal service center Public Works Director City Engineer Traffic Engineer Streets Sanitation Total Public Works Original Final Budget Budget Actual $ 356,600 $ 356,600 $ 390,415 4,228,000 4,284,901 3,803,855 212,400 212,400 229,395 714,600 714,600 674,366 1,361,900 1,361,900 1,405,586 1,768,500 1,718,500 1,896,025 2,421,400 2,421,400 2,340,792 2,493,000 2,486,099 2,083,803 13,556,400 13,556,400 12,824,237 97,900 97,900 40,469 18,466,000 18,466,000 18,973,081 11,094,300 11,094,300 11,259,650 29,658,200 29,658,200 30,273,200 Variance (33,815) 481,046 (16,995) 40,234 (43,686) (177,525) 80,608 402,296 732,163 57,431 (507,081) (165,350) (615,000) 290,500 290,500 341,696 (51,196) 238,800 238,800 230,849 7,951 1,220,000 1,220,000 1,260,634 (40,634) 2,625,200 2,625,200 2,479,103 146,097 3,633,300 3,633,300 3,606,081 27,219 4,491,900 4,491,900 4,555,883 (63,983) 12,499,700 12,499,700 12,474,246 25,454 Continued -107- CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Health and Human Resource Development Health and Human Services Director Health Department Emergency assistance services Mental health and community purchased services Commission on Aging Subsidized Taxicab Program Human Relations Total Health and Human Resource Development Recreation and Cultural Opportunities Library Recreation Parks and forestry Ecology Center Arts Council Total Recreation and Cultural Opportunities Housing and Economic Development Community Development administration Planning and zoning Housing rehabilitation and property standards Building code compliance Total Housing and Economic Development Pensions Illinois Municipal Retirement Pension Total Expenditures Original Final Budget Budget Actual Variance $ 291,600 $ 291,600 $ 286,713 $ 4,887 2,591,200 2,591,200 2,434,249 156,951 380,600 380,600 295,480 85,120 1,036,300 1,036,300 1,025,585 10,715 127,500 127,500 134,270 (6,770) 252,400 252,400 261,558 (9,158) 591,600 591,600 612,557 (20,957) 5,271,200 5,271,200 5,050,412 220,788 4,411,800 4,411,800 4,450,346 (38,546) 7,145,300 7,145,300 7,281,003 (135,703) 3,697,000 3,697,000 3,646,448 50,552 455,900 455,900 456,566 (666) 932,600 932,600 830,596 102,004 16,642,600 16,642,600 16,664,959 (22,359) 216,600 216,600 233,022 (16,422) 814,700 814,700 882,373 (67,673) 806,200 806,200 772,635 33,565 1,119,500 1,119,500 1,205,905 (86,405) 2,957,000 2,957,000 3,093,935 (136,935) 5,024,700 5,024,700 5,645,241 (620,541) $ 85,609,800 $ 85,609,800 $ 86,026,230 $ (416,430) Concluded - 108 - CITY OF EVANSTON, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Revenues Intergovernmental allotments Interest Total Revenues Expenditures Public Works Excess (Deficiency) of Revenues over (under) Expenditures Other Financing (Uses) Operating transfers (out) General Fund Deficiency of Revenues under Expenditures and Other Financing Uses Fund Balances Beginning of year End of year Original and Final Budget $ 2,100,000 55,000 2,155,000 1,500,000 655,000 (772,500) $ (117,500) Actual Variance $ 2,139,089 $ 39,089 119,906 64,906 2,258,995 103,995 1,845,900 (345,900) 413,095 (241,905) (772,500) - (359,405) $ 241,905 2,306,613 $ 1,947,208 Bill'Z CITY OF EVANSTON, ILLINOIS Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Revenues Hotel taxes Amusement taxes Interest Total Revenue Expenditures Housing and economic development Excess of Revenues over Expenditures Other Financing Sources (Uses) Operating transfers in (out) Maple Avenue Garage Fund Deficiency of Revenues under Expenditures and Other Financing Uses Fund Balances Beginning of year End of year Original and Final Budget Actual Variance $ 816,000 $ 1,535,145 $ 719,145 300,000 291,525 (8,475) - 19,166 19,166 1,116,000 1,845,836 729,836 848,900 1,021,385 (172,485) 267,100 824,451 557,351 (650,000) (650,000) - $ (382,900) 174,451 $ (557,351) 1,119,892 $ 1,294,343 - 110 - CITY OF EVANSTON, ILLINOIS Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Revenues Enhanced 911 surcharge Interest Miscellaneous Total Revenue Expenditures Public Safety Deficiency of Revenues under Expenditures Fund Balance Beginning of year End of year Original and Final Budget $ 1,129,780 25,000 1,154,780 1,736,700 $ (581,920) Actual Variance $ 1,052,991 $ (76,789) 29,433 4,433 9,135 9,135 1,091,559 (63,221) 1,314,307 422,393 (222,748) $ (359,172) 2,320,842 $ 2,098,094 CITY OF EVANSTON, ILLINOIS Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Revenues Interest Miscellaneous Total Revenue Expenditures Housing and economic development Excess (Deficiency) of Revenues over (under) Expenditures Other Financing (Uses) Transfers (out) General Fund Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses Fund Balance Beginning of year End of year Original and Final Budget $ 10,000 140,000 150,000 190,000 (40,000) (31,800) $ (71,800) Actual Variance $ 12,944 $ 2,944 75,664 (64,336) 88,608 (61,392) 44,738 145,262 43,870 83,870 (31,800) - 12,070 $ 83,870 1,546,361 $ 1,558,431 - 112 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Revenues Intergovernmental allotments Grant from the U.S. Department of Housing and Urban Development Miscellaneous Total Revenues Expenditures Housing and economic development Excess (Deficiency) of Revenues over (under) Expenditures Other Financing (Uses) Transfers Community Development Loan Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses Fund Balance Beginning of year End of year Original and Final Budget Actual Variance $ 2,256,640 $ 2,677,217 $ 420,577 - 10,691 10,691 2,256,640 2,687,908 431,268 2,052,319 2,692,229 (639,910) 204,321 (4,321) (208,642) - 4,321 4,321 $ 204,321 - $ (204,321) 12,799 $ 12,799 CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Ad in istration/P lanning CDBG Administration Fair Housing Assistance Total Administration/Planning Economic Development Evanston Community Development Corp. Neighborhood Fagade Program MBE/Small Business Assistance Total Economic Development Housing Housing Rehabilitation Administration Adaptive Devices Community Development Administration Minor Repairs/Painting Assistance - E.N.A.W. Smoke Detectors for Seniors Demolition/Vacant Lot Cleanup Program Housing Code Compliance Total Housing Original and Final Budget Actual Variance S 305,547 S 288,635 S 16,912 75,773 75,768 5 381,320 364,403 16,917 30,645 30,645 - 20,000 - 20,000 61,814 61,791 23 112,459 92,436 20,023 230,000 224,124 5,876 5,000 9,292 (4,292) 95,000 94,980 20 148,000 119,708 28,292 5,000 4,815 185 - 16,498 (16,498) 230,000 229,992 8 713,000 699,409 13,591 Continued - 114 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Neighborhood Revitalization Fleetwood Jourdain-Locker Rooms Accessible Curb Ramp Program Curb/Sidewalk Replacement Fleetwood Jourdain-Roof Replacement South Evanston Neighborhood Security Black American Heritage and Tech Center Alley Paving Program Mason Park Community Development -Neighborhood Improvement Handyman Assistance McCaw YMCA Elevator Project Fifth Ward My Yard My Block Smith Park Special Assesstments / Alley Paving Reba Park Fleetwood Jourdain-Community Center Evanston Day Nursery Family Focus Center Improvements Graffiti Removal Program Total Neighborhood Revitalization S Original and Final Budget 50,000 75,000 50,000 150,000 12,000 5,000 100,000 25,000 12,800 35,383 28,436 543,619 S Actual 22,965 116,648 75,000 12,087 7,903 88,209 123,534 543,762 46,387 6,238 31,203 5,000 29,668 25,000 24,363 12,484 35,383 28,434 1,234,268 K Variance (22,965) (66,648) (12,087) (7,903) (38,209) 26,466 (543,762) (46,387) 5,762 (31,203) 100,000 (29,668) (24,363) 316 2 (690,649) Continued - 115 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Year ended February 28, 2007 Public Services Adopt a Fancy Can Senior Crime Prevention Girls Scouts Studio B Evanston Community Defender Evanston Legal Services CCLAF Youth Job Center of Evanston Summer Youth EEAC Job Counselor YWCA Shelter Project Melas at Home North Shore Senior Center First Base Homeless Interfaith Predatory Open Studio Art Neighborhood Youth Services Music Institute Interfaith Housing Program Second Baptist Total Public Services Total Expenditures Original and Final Budget $ 4,736 18,943 3,988 49,850 8,973 54,836 42,050 2,493 35,892 7,976 23,769 3,988 3,988 2,991 14,018 1,496 11,964 9.970 301,921 S Actual 4,528 18,943 3,988 49,850 8,973 54,836 42,050 2,493 35,892 7,976 23,769 3,988 3,988 2,991 14,018 1,496 11,964 9,970 301,713 S Variance 208 208 $ 2,052,319 $ 2,692,229 S (639,910) Concluded MOM CITY OF EVANSTON, ILLINOIS Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Year ended February 28, 2007 Revenues Property taxes Current year levy Prior year levy Interest Total Revenues Expenditures Housing and economic development Excess of Revenues over Expenditures Fund Balance Beginning of year End of year Original and Final Budget Actual Variance $ 255,000 $ 255,000 $ - - (1,747) (1,747) - 190 190 255,000 253,443 (1,557) 245,000 245,000 - $ 10,000 8,443 $ (1,557) 220,478 $ 228,921 - 117 - CITY OF EVANSTON, ILLINOIS Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year February 28, 2007 and March 31, 2007 for City and Township respectively Revenues Property taxes Interest Replacement tax Total Revenues Expenditures General management and support Excess of Revenues over Expenditures Other Financing (Uses) Operating transfers (out) General Assistance Fund Excess of Revenues over Expenditures and Other Financing Uses Fund Balance Beginning of year End of year Original and Final Budget $ 340,890 2,000 30,000 372,890 235,119 137,771 (125,000) $ 12,771 Actual 316,625 7,538 54,833 378,996 213,471 165,525 (125,000) Variance (24,265) 5,538 24,833 6,106 21,648 27,754 40,525 $ 27,754 371,952 $ 412,477 SIDE CITY OF EVANSTON, ILLINOIS Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year February 28, 2007 and March 31, 2007 for City and Towns Revenues Property taxes Interest SSI reimbursement Emergency assistance reimbursement Total Revenues Expenditures General management and support (Deficiency) of Revenues (under) Expenditures Other Financing Sources Transfers in Town Fund Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures Fund Balance Beginning of year End of year Original and Final Budget Actual Variance $ 909,040 $ 884,492 $ (24,548) 3,000 9,619 6,619 20,000 3,047 (16,953) 132,912 46,084 (86,828) 1,064,952 943,242 (121,710) 1,142,669 890,170 (252,499) (77,717) 53,072 130,789 125,000 125,000 - $ 47,283 178,072 $ 130,789 363,444 $ 541,516 - 119 - CITY OF EVANSTON, ILLINOIS Debt Service Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budgetary Basis) Year Ended February 28, 2007 Revenues Taxes Property taxes Current year levy, net Prior year levy, net Sales tax Investment income Miscellaneous Total Revenues Expenditures General management and support Health and human resources development Debt Service Principal Interest Fiscal agent fees Total Expenditures Excess (Deficiency) of Revenues over (under) Expenditures Oilier Financing Sources (Uses) Operating transfers in (out) Bond Proceeds Escrow Funding Premiums and discounts General Downtown TIF DS Washington National TiF DS Special Assessment Capital Projects Maple Avenue Garage Sherman Garage Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses Fund Balances Beginning of year End of year Special Central General Service District Business Tax Southwest Tax Obi.Ration Debt No. 5 Increment District Increment District Original Original Original Original and Final and Final and Final and Final Budget Actual Budget Actual Budget Actual Budget Actual $ 8,737,000 $ 8,624,249 $ 438,200 $ 443,931 $ 9,200,000 $ 7,730,035 $ 590,000 $ 632,304 - 52,276 - 5,597 - 5,661 - 20,102 150,000 312,256 200 343 50,000 449,651 6,000 37,157 8,887,000 8,988,781 438,400 449,871 9,250,000 8,185,347 596,000 689,563 3,000 219 42,000 3,209 400,000 105,201 - 7,581 - - - - 200,000 200,000 - 600,000 6,060,000 5,944,343 265,000 285,000 3,780,000 7,000,000 250,000 285,000 4,301,201 4,023,657 170,600 157,313 379,800 220,294 42,800 24,938 190,000 205,970 - - 40,000 230509 - - 10,554,201 10,174,189 477,600 445,522 4,799,800 7,756,004 292,800 917,519 (1,667,201) (1,185,408) (39,200) 4,349 4,450,200 429,343 303,200 (227,956) 14,430,000 - - - - (14,367,683) 120,311 129,400 175,000 (325,000) (325,000) (23,000) (23,000) (845,315) (845,315) 337,500 337,500 - - (4,502,000) (4,502,000) 466,900 695,128 (5,672,315) (5,672,315) (23,000) (23,000) $(1,200,301) (490,280) $ (39,200) 1,513,174 $ 1,022,894 4,349 $(1,222,115) (5,242,972) $ 280,200 (250,956) 20,852 7,272,719 590,881 $ 25,201 $ 2,029,747 $ 339,925 - 120 - Washington Howard Hartrey Tax National Tax Howard Ridge Tax West Evanston Tax Increment District Increment District Increment District Increment District Totals 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 $ 1,199,900 $ 1,245,431 $ 1,500,000 $ 1,749,195 $ $ 115,909 $ $ 24,052 $ 21,665,100 $ 20,565,106 - - - 54,869 6,492 - - 144,997 35,000 153,729 15,000 248,671 1,916 19 256,200 1,203,742 - - 5,500,000 - - 5,500,000 - 1,234,900 1,399,160 7,015,000 2,052,735 124,317 24,071 27,421,300 21,913.845 - 7,581 145,000 4,407 10,204 17,521 590,000 155,923 200,000 - - 400,000 800,000 425,000 450,000 8,080,000 210,000 - - 18,860,000 14,174,343 268,700 247,095 1,520,400 (1,128,362) 6,683,501 3,544,935 - - 135,000 80,382 - - 365,000 516,861 693,700 704,676 10,080,400 (833,573) 10,204 17,521 26,898,501 19,192,062 541,200 694,484 (3,065,400) 2,886,308 114,113 6,550 522,799 2,721,783 14,430,000 (14,367,683) 120,311 (135,000) (135,000) (144,800) (144,800) - (498,400) (452,800) 845,315 845,315 845,315 845,315 (845,315) (845,315) 337,500 337,500 (4,502,000) (4,502,000) (727,500) (727,500) (135,000) (135,000) 700,515 (26,985) - - (4,662,900) (5,162,172) $ 406,200 559,484 $(2,364,885) 2,859,323 $ 114,113 $ 6,550 $ (4,140,101) (2,440,389) 1,768,187 1,414,443 45,917 - 12,626,173 $ 2,327,671 $ 4,273,766 $ 160.030 $ 6,550 $ 10,185,784 - 121 - This page has been intentionally left blank. Ivy CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Net Assets February 28, 2007 Assets Current Assets Business -type Activities -Enterprise Fund Total Maple Motor Vehicle Nonmajor Avenue Parking Proprietary Garage System Funds Cash and equivalents $ 1,908,361 $ 2,105,875 $ 4,014,236 Investments 3,153,635 - 3,153,635 Receivables Accrued interest 19,936 - 19,936 Other - 1,448 1,448 Due from other funds 5,500 - 5,500 Total Current Assets 5,087,432 2,107,323 7.194.755 Noncurrent Assets Capital Assets Land - 2,742,522 2,742,522 Capital assets being depreciated 27,128,673 8,755,581 35,884,254 Less accumulated depreciation (4,232,862) (2,806,359) (7,039,221) Total Noncurrent Assets 22,895,811 8,691,744 31,587,555 Other Assets Receivables Notes - 269,000 269,000 Total Assets 27,983,243 11,068,067 39,051,310 - 122 - Liabilities Current Liabilities (Payable from Current Assets) Vouchers payable Accrued payroll Interest payable Compensated absences payable General obligation bonds payable Unamortized bond expenses and discount Due to other funds Total Current Liabilities Payable from Current Assets Long -Term Liabilities General obligation bonds payable Total Liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets Business -type Activities -Enterprise Fund Total Maple Motor Vehicle Nonmajor Avenue Parking Proprietary Garage System Funds S 113,911 $ 58,581 $ 172,492 1,714 18,967 20,681 - 41,324 41,324 - 71,133 71,133 7,900,000 630,000 8,530,000 (10,376) - (10,376) 8,514 12,299 20,813 8,013,763 832,304 8,846,067 - 2,500,000 2,500,000 8,013,763 3,332,304 11,346,067 14,995,811 5,561,744 20,557,555 4,973,669 2,174,019 7,147,688 $ 19,969,480 $ 7,735,763 $ 27,705,243 - 123 - CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Year ended February 28, 2007 Operating Revenues Charges for services Miscellaneous Total Operating Revenues Operating Expenses Excluding Depreciation Administration Operations Total Operating Expenses Excluding Depreciation Operating Income (Loss) Before Depreciation Depreciation Operating Income (Loss) Nonoperating Revenues (Expenses) Investment income Interest expense Bond expenses and amortization of discount Total Nonoperating Revenues (Expenses) Income (Loss) Before Transfers Transfers In (Out) Central Business Tax Increment District Fund Economic Development Fund Change in Net Assets Total Net Assets (Deficit) - Beginning of Year Total Net Assets - End of Year Business -type Activities -Enterprise Fund Maple Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds S 1,417,394 $ 3,048,329 $ 4,465,723 74 10,258 10,332 1,417,468 3,058,587 4,476,055 - 1,096,420 1,096,420 1,821,022 1,447,557 3,268,579 1,821,022 2,543,977 4,364,999 (403,554) 514,610 111,056 684.932 172,643 857,575 (1,088,486) 341,967 (746,519) 186,582 115,954 302,536 (393,174) (245,879) (639,053) (11,023) (11,023) (217,615) (129,925) (347,540) (1,306,101) 212,042 (1,094,059) 4,502,000 - 4,502,000 650,000 - 650,000 3,845,899 212,042 4,057,941 16,123,581 7,523,721 23,647,302 19,969,480 $ 7,735,763 S 27,705,243 124 - CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Cash Flows Year ended February 28, 2007 Cash Flows from Operating Activities Receipts from customers and users Receipts from interfund services provided Payments to suppliers Payments to employees Payments for interfund services provided Net Cash Provided by (Used for) Operating Activities Cash Flows from Noncapital Financing Activities Transfers In (Out) Central Business Tax Increment District Fund Economic Development Fund Net Cash Provided by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets Principal paid on general obligation bonds Interest paid on general obligation bonds Net Cash (Used for) Capital and Related Financing Activities Cash Flows from Investing Activities Interest income Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Equivalents Cash and Equivalents Beginning of year End of year Reconciliation Cash and equivalents Unrestricted Business -type Activities -Enterprise Fund Maple 'Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds $ 1,423,065 $ 3,108,825 $ 4,531,890 54,500 - 54,500 (1,883,627) (1,440,103) (3,323,730) 1,714 (1,131,821) (1,130,107) 8,186 (481) 7,705 (396,162) 536,420 140,258 4,502,000 - 4,502,000 650,000 - 650,000 5,152,000 5,152,000 - (258,837) (258,837) (5,200,000) (585,000) (5,785,000) (393,174) (245,879) (639,053) (5,593,174) (1,089,716) (6,682,890) 186,582 115,954 302,536 186,582 115,954 302,536 (650,754) (437,342) (1,088,096) 5,712,750 2,543,217 8,255,967 S 5,061,996 $ 2,105,875 $ 7.167,871 S 5,061,996 $ 2,105,875 S 7,167,871 S 5,061,996 $ 2,105,875 $ 7.167.871 - 125 - CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Cash Flows - Continued Year ended February 28, 2007 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) Depreciation Changes in assets and liabilities Other receivables Notes receivable Interfund receivable Accrued interest receivable Compensated absences Accrued payroll Interfund payable Vouchers payable Interest payable Net Cash Provided by (Used for) Operating Activities Business -type Activities -Enterprise Fund Maple Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds S (1,088,486) S 341,967 $ (746,519) 684,932 172,643 857,575 - 10,238 10,238 - 40,000 40,000 54,500 - 54,500 5,597 - 5,597 1,714 (37,224) (35,510) - 1,823 1,823 8,186 (481) 7,705 (62,605) 15,029 (47,576) - (7,575) (7,575) S (396,162) $ 536.420 $ 140,258 - 126 - CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets February 28, 2007 Assets Current Assets Cash and equivalents Restricted cash and equivalents and investments Receivables Accounts - billed Accounts - unbilled Due from other funds Other Receivables Accrued interest Inventory Total Current Assets Noncurrent Assets Restricted cash and equivalents and investments Capital Assets Land Construction in progress Capital assets being depreciated Less accumulated depreciation Total Capital Assets Total Assets Restricted Accounts Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals $ 103,565 $ - $ - $ - $ 103,565 - 102,286 - 77,235 179,521 1,067,139 - - - 1,067,139 875,241 - - - 875,241 85 - - 15,123 15,208 55,862 - - - 55,862 - - 82,018 55,980 137,998 544,075 - - - 544,075 2,645,967 102,286 82,018 148,338 2,978,609 736,044 2,040,329 3,120,898 3,710,114 9,607,385 555,415 - 555,415 65,151 - 390,060 455,211 62,907,213 - - 62,907,213 (15,453,066) - - - (15,453,066) 48,074,713 - - 390,060 48,464,773 $ 51,456,724 $ 2,142,615 $ 3,202,916 $ 4,248,512 $ 61,050,767 - 127 - CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets February 28, 2007 Liabilities and Net Assets Current Liabilities Vouchers payable Vouchers payable - restricted Accrued payroll Interest payable - restricted Revenue bonds payable Revenue bonds payable - restricted Due to other funds Compensated absences payable Total Current Liabilities Long -Term Liabilities Revenue bonds payable Unamortized bond discount on bonds payable Total Long -Term Liabilities Total Liabilities Net Assets Invested in capital assets, net of related debt Restricted for debt service Unrestricted Total Net Assets Total Liabilities and Net Assets Restricted Accounts Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals $ 322,083 $ - $ - $ 39,782 $ 361,865 - - 77,235 77,235 73,235 - - - 73,235 - 21,453 - 21,453 404,167 - - 404,167 - 80,833 - - 80,833 40,925 - - 1,010 41,935 431,005 - - 431,005 1,271,415 102,286 - 118,027 1,491,728 2,755,000 - 2,755,000 16,935 - - - 16,935 2,771,935 - - - 2,771,935 4,043,350 102,286 - 118,027 4,263,663 45,612,005 - - - 45,612,005 - 2,040,329 3,202,916 4,130,485 9,373,730 1,801,369 - - - 1,801,369 47,413,374 2,040,329 3,202,916 4,130,485 56,787,104 $ 51,456,724 $ 2,142,615 $ 3,202,916 $ 4,248,512 $ 61,050,767 - 128 - CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Changes in Net Assets - Reserved - Restricted Accounts Year ended February 28, 2007 Bond Depreciation, and Bond Improvement Interest Reserve and Extension Totals Increases Intrafund transfers in - accordance with bond ordinance unreserved retained earnings - Operation and Maintenance $ 1,042,300 $ - $ 3,009,600 $ 4,051,900 Transfer from Capital Improvement - - 2,000,000 2,000,000 Investment earnings 75,730 152,918 139,759 368,407 Total Increases 1,118,030 152,918 5,149,359 6,420,307 Decreases Bond principal 472,500 - - 472,500 Bond interest 142,359 - - 142,359 Purchase of capital assets - - 4,762,688 4,762,688 Transfer to Insurance Fund - - 2,000,000 2,000,000 Payment of expense 300 120 117.716 118,136 Total Decreases 615,159 120 6,880,404 7,495,683 Net Increase (Decrease) 502,871 152,798 (1,731,045) (1,075,376) Net Assets Beginning of year 1,537,458 3,050,118 5,861,530 10,449,106 End of year $ 2,040,329 $ 3,202,916 $ 4,130,485 $ 9,373,730 - l29 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual Year ended February 28, 2007 (With Comparative Totals for the Year Ended February 28, 2006) Budget Actual Operating Revenues Charges for services $ 13,351,200 $ 12,194,340 Miscellaneous 301,600 444,803 Total Operating Revenues 13,652,800 12,639,143 Operating Expenses Excluding Depreciation Administration 720,500 642,518 Operations Pumping 1,991,300 1,864,554 Filtration 2,077,000 1,784,406 Meter maintenance 321,100 301,278 Distribution 1,313,400 1,280,427 Other 857,100 908,744 Total Operating Expenses Excluding Depreciation 7,280,400 6,781,927 Operating Income Before Depreciation 6,372,400 5,857,216 Depreciation - 1,384,583 Operating Income 6,372,400 4,472,633 Nonoperating Revenues (Expenses) Investment income 50,000 189,392 Interest expense (142,359) Bond expenses and amortization of discount 1,129 Net book value of capital assets disposed - (4,684) Total Nonoperating Revenues (Expenses) 50,000 43,478 Income Before Transfers 6,422,400 4,516,111 Transfers In (Out) Transfer In - 2,000,000 Transfer Out (2,693,600) (4,693,600) Total Transfers In (Out) (2,693,600) (2,693,600) Net Income $ 3,728,800 1,822,511 Other Changes in Unreserved Net Assets Intrafund transfers in (out) - net assets - reserved - restricted accounts 1,325,647 Increase in Unreserved Net Assets 3,148,158 Unreserved Net Assets Beginning of year 44,265,216 End of year $ 47,413,374 Prior Year Actual 13,475,577 485,859 13,961,436 634,737 1,875,494 1,822,574 310,591 1,100,542 951,123 6,695,061 7,266,375 1,345,848 5,920,527 167,149 (171,977) (1,401) (242,851) (249,080) 5,671,447 3,568,449 (5,993,600) (2,425,151) 3,246,296 1,066,797 4,313,093 39,952,123 44,265,216 !:[tide CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual Year ended February 28, 2007 (With Comparative Totals for the Year Ended February 28, 2006) Charges for Services, Net Water Sales Evanston Skokie Northwest Water Commission Total Charges for Services Miscellaneous Fees and outside work Fees, merchandise and other Total Miscellaneous Prior Year Budget Actual Actual $ 6,588,000 S 5,804,517 $ 6,706,643 3,247,300 2,891,834 3,018,734 3,496,800 3,497,989 3,750,200 13,332,100 12,194,340 13,475,577 45,000 92,618 78,619 255,700 352,185 407,240 300,700 444,803 485,859 Total Operating Revenues $ 13,632,800 $ 12,639,143 $ 13,961,436 - 131 - This page has been intentionally left blank. 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. CITY OF EVANSTON, ILLINOIS Internal Service Funds Statement of Net Assets February 28, 2007 Fleet Services Insurance Totals Assets Current Assets Cash and equivalents $ 110,482 $ 254,366 $ 364,848 Investments - 4,827,875 4,827,875 Receivables - other 18,575 44,926 63,501 Due from other funds 105,000 - 105,000 Inventories 354,959 - 354,959 Total Unrestricted Current Assets 589,016 5,127,167 5,716,183 Capital Assets Cost 19,877,815 - 19,877,815 Accumulated depreciation (13,082,065) - (13,082,065) Total Capital Assets 6,795,750 - 6,795,750 Total Assets 7,384,766 5,127,167 12,511,933 Liabilities and Fund Equity Current Liabilities Vouchers payable 162,840 46,356 209,196 Accrued payroll 27,300 1,389 28,689 Compensated absences payable 83,473 - 83,473 Claims payable - 821,700 821,700 Due to other funds 20,384 795 21,179 Total Current Liabilities 293,997 870,240 1.164,237 Long -Term Liabilities Claims payable - 4,874,500 4,874,500 Total Liabilities 293,997 5,744,740 6,038,737 Net Assets (Deficit) Invested in capital assets, net of related debt 6,795,750 - 6,795,750 Unrestricted 295,019 (617,573) (322,554) Total net assets (deficit) $ 7,090,769 $ (617,573) $ 6,473,196 -132- CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets Year ended February 28, 2007 Operating Revenues Charges for Services General Fund Sewer Fund Water Fund Motor Vehicle Parking System Fund Miscellaneous Total Operating Revenues Operating Expenses General support Major maintenance Vehicle body maintenance General liability claims Workers compensation claims Other Total Operating Expenses Operating Income (Loss) Before Depreciation Depreciation Operating Income (Loss) Nonoperating Revenues (Expenses) Investment income Gain (loss) on disposition of assets Total Nonoperating Revenues (Expenses) Income (Loss) before Operating Transfers Transfers In (Out) Water Fund Sewer Fund General Fund Change in Net Assets Total Net Assets (Deficit) - Beginning of Year Total Net Assets (Deficit)- End of Year Fleet Services Insurance Totals $ 4,317,800 S 1,900,000 S 6,217,800 258,600 - 258,600 331,200 - 331,200 111,800 - 111,800 37,081 112,722 149,803 5,056,481 2,012,722 7,069,203 452,555 - 452,555 2,526,141 - 2,526,141 216,696 - 216,696 - 2,837,645 2,837,645 - 1,225,242 1,225,242 - 102,377 102,377 3,195,392 4,165,264 7,360,656 1,861,089 (2,152,542) (291,453) 1,553,190 - 1,553,190 307,899 (2,152,542) (1,844,643) - 57,343 57,343 106,733 - 106,733 106,733 57,343 164,076 414,632 (2,095,199) (1,680,567) - 2,000,000 2,000,000 - 3,000,000 3,000,000 300,000 - 300,000 714,632 2,904,801 3,619,433 6,376,137 (3,522,374) 2,853,763 $ 7,090,769 $ (617,573) S 6,473,196 Continued - 133 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Cash Flows Year ended February 28, 2007 Fleet Services Insurance Totals Cash Flows from Operating Activities Receipts from customers and users $ 5,057,931 $ 1,967,796 $ 7,025,727 Receipts from interfund services provided 176,650 - 176,650 Payments to suppliers (2,851,600) (1,798,352) (4,649,952) Payments to employees (467,967) (1,224,580) (1,692,547) Payments for interfund services provided (964,740) 795 (963,945) Net Cash Provided By (Used For) Operating Activities 950,274 (1,054,341) (104,067) Cash Flows from Noncapital Financing Activities Transfers In (Out) Water Fund - 2,000,000 2,000,000 Sewer Fund - 3,000,000 3,000,000 General Fund 300,000 - 300,000 Net Cash Provided by Noncapital Financing Activities 300,000 5,000,000 5,300,000 Cash Flows from Capital and Related Financing Activities Sale of capital assets 129,798 - 129,798 Acquisition and construction of capital assets (1,294,308) - (1,294,308) Net Cash (Used for) Capital and Related Financing Activities (1,164,510) - (1,164,510) Cash Flows from Investing Activities Proceeds from sales and maturities of investments - - - Purchase of investments - (3,857,343) (3,857,343) Interest income - 57,343 57,343 Net Cash Provided by Investing Activities - (3,800,000) (3,800,000) Net Decrease in Cash and Equivalents 85,764 145,659 231,423 Cash and Equivalents Beginning of year 24,718 108,707 133,425 End of year S 110,482 $ 254,366 $ 364,848 Continued - 134 - CITY OF EVANSTON, ILLINOIS Combining Statement of Cash Flows - Continued Internal Service Funds Year ended February 28, 2007 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities Operating Income Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation Changes in assets and liabilities Other receivables Interfund receivable Inventories Compensated absences Accrued payroll Interfund payable Vouchers payable Claims payable Net Cash Provided By (Used For) Operating Activities Fleet Services Insurance Totals S 307,899 $ (2,152,542) $ (1,844,643) 1,553,190 - 1,553,190 1,450 (44,926) (43,476) 176,650 - 176,650 (73,982) - (73,982) (19,102) - (19,102) 3,690 662 4,352 (964,740) 795 (963,945) (34,781) (20,416) (55,197) - 1.162,086 1,162,086 S 950,274 $ (1,054,341) $ (104,067) - 135 - This page has been intentionally left blank. AGENCY FUND This page has been intentionally left blank. CITY OF EVANSTON, ILLINOIS Special Assessment Agency Fund Statement of changes of Assets and Liabilities Year ended February 28, 2007 Assets Current Assets Cash and short term investments $ Total Assets $ Liabilities Due to special assessment bondholders $ Total Liabilities $ Beginning of End of Year Additions Deletions Year 21,073 $ - $ - $ 21,073 21,073 $ - $ - $ 21,073 21,073 $ - $ - $ 21,073 21,073 $ - $ - $ 21,073 - 136 - This page has been intentionally left blank. STATISTICAL SECTION (UNAUDITED) This page has been intentionally left blank. Statistical Section 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. Contents Page Financial Trends 137-140 These schedules contain trend information to help the reader understand how the Government's financial performance and well-being have changed over time. Revenue Capacity 141-143 These schedules contain information to help the reader assess the Government's most significant local revenue source, the property tax. Debt Capacity 144-146 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. Demographic and Economic Information 147-148 These schedules offer demographic and economic indicators to help the reader understand the environment within the Government's financial activities take place. Operating Information 149-154 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. 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. CITY OF EVANSTON, ILLINOIS Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Governmental Activites Invested in Capital Assets, net of related debt Restricted Unrestricted Total Governmental Activities net assets Business -type Activities Invested in Capital Assets, net of related debt Restricted Unrestricted Total Business -type Activities net assets Primary Government Invested in Capital Assets, net of related debt Restricted Unrestricted Total Primary Governemnt net assets Note: A Ten Year history is not yet available. Source: City Finance department Fiscal Year 2003 2004 2005 2006 2007 $ 35,437 $ (9,753) $ 426 $ 34,428 $ 31,133 33,826 33,415 32,811 31,169 30,034 (15,245) 32,861 43,010 15,408 25,171 $ 54,018 $ 56,523 $ 76,247 $ 81,005 $ 86,338 $ 96,615 $ 103,339 $ 114,442 $ 129,084 $ 140,621 9,491 11,158 11,274 10,449 9,374 18,053 23,332 21,478 23,483 21,417 $ 124,159 $ 137,829 $ 147,194 $ 163,016 $ 171,412 $ 132,052 $ 93,586 $ 114,868 $ 163,512 $ 171,754 43,317 44,573 44,085 41,618 39,408 2,808 56,193 64,488 38,891 46,588 $ 178,177 $ 194,352 $ 223,441 $ 244,021 $ 257,750 - 137 - CITY OF EVANSTON, ILLINOIS Changes in Net Assets Last Five Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Expenses Governmental Activites General government Public Safety Public Works Health & Human Resource Development Housing & Economic Development Culture and Recreation Interest on Long-term Debt Total governmental activities expenses Business -type Activities Water Sewer Motor vehicle parking system Sherman garage Maple avenue garage Total Business -type Activities Total primary government expenses Program Revenues Governmental Activites Charges for Services General government Culture and Recreation Other activies Operating grants and contributions Capital Grants and Contributions Total governmental activities program revenues Business -type activities Charges for Services Water Sewer Sherman garage Motor vehicle parking system Maple avenue garage fiord Total Business -type activities program reveneus Ttoal primary government program revenues Net (expense)/revenue Governmental activities Business -type activites Total Primary Government net expense General Revenues and Other Changes in Net Assets Governmental Activites Taxes Property taxes Sales taxes Motor Fuel Taxes Investment earnings Miscellaneous Transfers Total governmental activites Business -type activities Investment earnings Transfers Total business -type activites Total primary government Changes in Net Assets Governmental activities Business -type activites Total primary government Source: City Finance department Note: A Ten Year History is not yet available -138- Fiscal Year 2003 2004 2005 2006 2007 $ 14,274 $ 15,791 $ 14,451 $ 19,537 $ 19,951 33,420 39,237 31,168 45,951 46,368 13,187 13,065 14,225 14,632 16,505 5,041 5,370 5,843 4,781 6,108 5,818 5,973 6,757 6,850 7,924 16,247 17,129 18,276 19,792 18,303 4.540 4.900 5.086 5.874 6.926 92,527 101,465 95,806 117,417 122,085 11,407 8,992 8,176 8,760 8,778 8,544 8,964 8,781 9,219 9,588 3,702 3,468 4,777 2,904 2,963 1,613 2,679 3,028 3,148 3,096 2,910 26,332 24,452 24,882 23,979 25,852 $ 118,859 $ 125,917 $ 120,688 $ 141,396 $ 147,937 $ 11,704 $ 12,750 $ 13,262 $ 13,060 $ 13,630 3,759 3,739 3,731 4,310 4,353 4,479 6,799 9,253 10,293 8,779 3,006 3,480 3,713 3,441 3,679 1,963 1,459 212 1,127 185 24.911 28.227 30.171 32.231 30.626 13,495 13,478 13,187 13,961 12,639 15,806 15,436 14.913 16,077 14,394 779 3,129 3,266 3,011 2,965 3,059 1,266 1,263 1,512 1,622 1,417 33.696 33.443 32.623 34.625 32.288 $ 58,607 $ 612670 $ 62,794 $ 66,856 $ 62,914 Fiscal Year 2006 2007 2007 2007 2007 (67,616) (73,238) (65,635) (85,186) (91,459) 7.364 8.991 7.741 10.646 6.436 (60,252) (64,247) (57,894) (74,540) (85,023) $ 71,719 $ 217 2,116 1,266 2,513 (1.719) 76,112 432 1.719 2,151 $ 78,263 $ $ 8,496 $ 9.515 $ 18,011 $ 75,929 $ 79,715 $ 345 345 1,710 1,547 2,096 4,996 (4.335) (1.244) 75,745 85,359 343 380 4.335 1.244 4,678 1,624 80,423 $ 86,983 $ 89,810 $ 61,983 14,387 2,997 3,752 1,412 17,287 (4.277) (616) 89,942 96,793 896 1,344 4.277 616 5,173 1,960 95,115 $ 98,753 2,507 $ 19,724 $ 4,756 $ 5,334 13.669 9.365 15.819 8.396 16,176 $ 29,089 $ 20,575 $ 13,730 CITY OF EVANSTON, ILLINOIS Fund Balances, Governmental Funds Last Ten Fiscal Years ( Modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General Fund Reserved $ 803 $ 965 $ 745 $ 3,104 $ 2,820 $ 4,614 $ 4,665 $ 7,948 $ 6,027 $ 1,327 Unreserved 7,001 7,222 9,327 11,341 12,438 13,110 14,375 15,209 18,804 24,866 Total general fund $ 7,804 $ 8,187 $ 10,072 $ 14,445 $ 15,258 $ 17,724 $ 19,040 $ 23,157 $ 24,831 $ 26,193 All Other Governmental Funds Reserved $ 24,073 $ 27,054 $ 26,867 $ 23,014 $ 25,683 $ 29,211 $ 28,750 $ 30,761 $ 33,937 $ 31,741 Unreserved, reported in Special revenue funds 4,555 4,959 5,033 6,371 7,507 60,514 4,617 5,249 5,171 5,587 Capital Projects Funds 13,897 13,564 14,494 27,222 12,648 - 58,816 49,476 31,696 23,965 Total all other governmental funds $ 42,525 $ 45,577 $ 46,394 $ 56,607 $ 45,838 $ 89,725 $ 92,183 $ 85,486 $ 70,804 $ 61,293 Note: Fund balances for debt service have been included in the reserved amounts. Source: City Finance department -139- CITY OF EVANSTON, ILLINOIS Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Revenues Taxes Licenses, fees and permits Fines and penalties Charges for services Special Assessments Intergovernmental Investment Earnings Other Revenues Total Revenues Expenditures General Government Public Safety Public Works Recreation and cultural opportunities Health and Human Development Housing and Economic Development Pensions Capital Outlay Debt Service Interest Fiscal agent fees Principal Total governmental activities program revenues Net (expense)/revenue Governmental activities Other financing sources (uses) Proceeds from borrovring Payment/Proceeds from refunding Capitalized interest income Capitalized interest expense Proceeds sale property/other Reduction in long term debt Escrow funding Transfers in Transfers (out) Total Other financing sources (uses) Net Changes in Fund Balance Debt Service as a percentage of noncapital expenditures Source, City Finance department Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 $ 50,245 S 56,916 $ 62,382 S 67,585 $ 68,749 S 58,814 $ 63,833 S 66,744 S 75,661 S 77,137 4,394 4,187 5,333 6,436 7,405 6,459 6,699 6,773 9,164 8,061 2,764 2,831 2,625 2,782 3,242 3,742 4,163 3,999 3,781 4,029 4,030 4,998 4,860 5,491 5,515 6,262 5,997 6,053 6,905 7,167 - - - - 208 217 365 546 565 5,844 5,640 7,259 5,448 5,859 19,116 18,586 21,618 21,106 21,402 2,341 2,204 2,477 3,297 2,458 1,255 1,650 1,540 2,970 3,695 3.717 3 732 4.399 4300 4.976 6.859 6.953 9 451 5.812 5578 73,335 80,508 89,335 95,339 98,204 102,715 108,098 116,543 125,945 127,634 7,411 8,386 9,732 10,107 13,025 12,565 13,365 14,666 15,601 14,539 21,239 22,182 22,505 23,928 25,454 32,093 33,896 36,323 39,094 39,690 9,616 10,434 12,678 12,037 11,655 10,847 1 1,1 19 12,070 13,242 14,282 9,940 10,590 11,730 12,107 13,028 13,712 14,287 15,493 16,526 16,683 3,991 4,212 4,342 4,744 4,621 4,839 5,272 5,801 4,566 5,850 6,320 5,336 7,013 5,620 6,293 5,662 5,882 6,717 6,646 7,683 3,812 8,516 8,537 8,801 9,277 4,209 2,688 1,372 4,628 5,645 9,437 4,944 6,047 10,464 16,837 13,301 9,941 18,208 42,087 18,986 4,243 4,767 4,529 4,770 4,339 4,846 5,163 5,027 5,857 6,927 - 359 323 517 11,548 7,421 6,188 6,325 6,300 6,585 9,385 7,885 7,690 11,530 87 557 86 788 93301 98.903 110.829 108.659 110.998 123.921 156.260 142.332 (14,222) (6,280) (3,966) (3,564) (12,625) (5,944) (2,900) (7,378) (30,315) (14,698) $ 32,317 $ 7,184 S 37,251 S 15,314 $ - $ 57,066 S 24,917 $ 25,724 $ 31,332 $ 24,916 (18,412) - (32,221) - - - - - - - - 773 - - 355 - - - - - (773) - - (355) - 145 - 45 - 318 40 - - - - - - - - (4,072) (12,718) (11,886) (6,626) (14,368) 5,756 5,854 7,705 3,526 5,619 8,259 9,762 6,020 7,032 6,529 (2.9511 (33231 (5. 174) (2.2101, (3.893) (95721 (15.2871 (15.0621, (14.432) (10.528) 16,855 9,715 7,606 16,630 2,044 51,621 6,674 4,796 17,306 6,549 S 2,633 S 3,435 $ 3,640 $ 13,066 $ (10,581) S 45,677 $ 3,774 $ (2,582) $ (13,009) S (8,149) 2021% 1489% 1228% 1255% 1132% 1199% 1440% 1221% 11.87% 1496% 140 - CITY OF EVANSTON, ILLINOIS Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years (amounts expressed in thousands) Levy Less Total Taxable Total Total Year Residential Farm Commercial industrial Railroad Tax -Exempt Assessed Actual Tax Ended Property Pro a Pro a Pro a Pro a Property Value Value Rate 1996 704,557,445 16,895 397,411,620 80,770,373 356,179 1,183,112,512 3,549,337,536 2.059 1997 702,987,666 16,895 396,349,777 79,242,479 317,786 1,178,914,603 3,536,743,809 2.069 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 Note: Property is reassessed once every three years. Property is assessed at 1/3 actual value. Tax rates are per $100 of assessed value Source: Cook County Assessor's office MENE CITY OF EVANSTON, ILLINOIS Principal Property Tax Payers Current year and Nine Years Ago Tax Paver Golub & Company REP CBRE Rotary International Church Street Plaza Church & Chicago LTD. Partnership Omni Orrington Hotel Evanston Plaza Freed Evanston Hotel Assoc. Albertson Property Tax Kap Sum Properties LLC Total Total EAV Source: Cook County Assessor's office 2006 (2005 EAV) Percentage of Total City Total Taxable Assessed Assessed Value Rank Value 28,624,653 1 1.28% 21,727,776 2 0.97% 21,523,423 3 0 96% 17,921,581 4 0 80% 15,878,114 5 0.71% 13,391,021 6 0 60% 13,300,351 7 0.59% 12,361,644 8 0.55% 10,650,893 9 0.47% 9,792,045 10 0.44% 165,171,501 7.36% 2,242,753,022 Rotary International Washington National Dayton Hudson Balcor Co Equity Group Presbyterian Homes The Shaw Co Shand Morahan Co St Francis Hospital Omni Orrington Hotel Total EAV -142- 1997 (1996 EAV) Percentage of Total City Total Taxable Assessed Assessed Value Rank Value 16,559,326 1 1 40% 11,930,798 2 101% 10,734,596 3 0.91% 9,007,679 4 0.76% 8,681,440 5 0.73% 8,511,049 6 0.72% 8,342,043 7 0.71% 8,176,365 8 0.69% 7,725,275 9 0.65% 6,821,621 10 0.58% 96,490,192 1,183,112,512 8.16% 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 Lew 1997 $ 23,757,144 $ 23,234,806 97.80% $ 404,013 $ 23,638,819 99.50% 1998 23,757,032 23,223,913 97.76% 544,880 23,768,793 100.05% 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 3,481,259 10.12% - 3,481,259 10.12% Source: City Finance department -143- CITY OF EVANSTON, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (dollars in thousands, except per capita) (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 1998 73,233 1,148,604,617 128,908,875 4,039,098 62,085,000 62,784,777 5.47% 857.33 1999 73,233 1,256,996,184 130,976,752 4,178,055 68,025,000 58,773,697 4.68% 802.56 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% 75L69 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 Notes: (1) Equalized assessed values do not include tax increment financing district incremental equalized assessed values (2) 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 (3) 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. Source: Cook County and City Finance department -144- CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities As of February 28, 2007 Direct debt - bonds, notes, and contracts outstanding (2) Other bonded debt County of Cook Cook County Forest Preserve District Metropolitan Water Reclamation District High School District 202 School District 65 Skokie Park District Total Overlapping Debt Total Direct and Overlapping Debt Source: Cook County Percentage of Debt City of Applicable Evanston's Total to City of Share of Debt Outstanding Evanston (1) $ 84,460,493 100,000% $ 84,460,493 3,022,505,000 1.683% 50,868,759 128,670,000 1.683% 2,165,516 1,628,886,177 1.719% 28,000,553 14,396,049 88.571% 12,750,725 37,795,000 88.571% 33,475,409 25,368,563 0.658% 166,925 4,857,620,789 127,427,889 $ 4,942,081,282 $ 211,888,382 - 145 - CITY OF EVANSTON, ILLINOIS Pledged -Revenue Coverage Last Ten Fiscal Years Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Water Revenue Bonds Net Utility Less: Service Operating Charges Expenses $ 12,113,182 $ 5,669,524 13,192,965 5,416,366 13,709,645 5,602,297 13,509,413 5,430,908 13,005,269 5,670,480 13,687,288 9,347,238 13,583,515 7,056,290 13,338,642 6,395,231 14,380,966 6,705,865 13,196,942 6,900,063 Available Debt Service Resources Principal Interest $ 6,443,658 $ 1,613,334 $ 941,293 7,776,599 1,907,500 639,234 8,107,348 2,170,000 666,466 8,078,505 2,245,000 589,559 7,334,789 2,325,000 494,210 4,340,050 2,200,000 343,795 6,527,225 805,000 235,913 6,943,411 805,000 206,575 7,675,101 865,000 177,355 6,296,879 470,000 145,088 Coverage 2.52 3.05 2.86 2.85 2.60 1.71 6.27 6.86 7.36 10.24 Note: 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. Source: Various City departments MEM CITY OF EVANSTON, ILLINOIS Demographic and Economic Statistics Last ten Calendar Years Per Capita Education Personal Median Level in Years School Unemployment Year Population Income Age of Schooline Enrollment Rate 1998 73,233 $ 28,740 31.9 13.6 9,764.0 3.7% 1999 73,233 29,372 31.9 13.6 9,433.0 3.6% 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% Source: Various Government agencies -147- CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Nine Years Ago 2007 Employer Emnlovees Rank 1998 Emnlovees Rank Northwestern University 5,325 1 Northwestern University 5,900 1 Evanston Northwestern Healthcare 3,780 2 Evanston Northwestern Healthcare 4,300 2 St. Francis Hospital 1,649 3 St. Francis Hospital 2,000 3 City of Evanston 865 4 Evanston School District 65 1,200 4 Evanston School District 65 700 5 City of Evanston 832 5 Evanston Township High School 566 6 Presbyterian Homes/McGaw Care 610 6 Presbyterian Homes/McGaw Care 533 7 Evanston Township High School 500 7 Rotary International 460 8 Rotary International 450 8 Jewel/Osco Food Stores 455 9 National Louis University 300 9 Mather LifeWays Retirement 430 10 Shand Morahan Co 175 10 Total Source: City Economic Development Division 14,763 -148- 16,267 CITY OF EVANSTON, ILLINOIS Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year Ended 2/28 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Function/Proeram General Government City Clerk 300 3.00 300 300 3.00 300 200 200 200 200 City Manager's Office 8.35 805 805 7.55 755 755 7.25 7.25 7.25 725 MBIS 11.75 14.75 16.75 17.75 20.75 2150 21.80 22.80 24.80 23.80 Legal 6 50 6.50 6.50 750 750 6.00 6.00 7.00 7.00 7.00 Human Resources 800 9.00 9.00 8.00 8.00 8.00 7.00 700 7.00 800 Finance 2350 23.50 23.50 26.00 27.00 26.00 24.50 24.50 2650 25.50 Facilities Management 24.00 2300 2300 23.00 24.00 23.00 2300 23 10 21 10 21 20 Community Development 3200 36.00 3600 38.00 38.00 36.00 3400 36.00 3600 3600 Police 22600 22700 211 00 211 80 21480 21230 21380 21750 21950 221 75 Fire 10800 10800 10900 10900 10900 10900 10900 10900 11000 1 1 1 00 Human & Health Services 4545 4507 4593 4573 4503 41 73 3954 3930 3930 40.15 Public Works 82.01 85 51 9251 91 50 9050 9000 9000 90.25 91.25 9025 Human Relations 400 400 4.00 400 4.00 4.00 400 4.00 400 4.00 Library 6277 65 52 6552 6552 6637 67 17 66.20 66.65 67 18 67 19 Recreation, Parks & Forestry 8427 8707 93 38 112.22 12482 12225 113.94 11920 121 30 11990 Total General Fund 72960 74597 747 14 770.57 79032 777.50 762.03 775.55 784.18 784.99 Emergency Telephone System 2.00 200 200 3.00 3.00 3.00 400 4.00 400 4.00 CDBG 200 200 200 2.00 3.50 200 200 2.00 200 200 Economic Development Fund 1 45 1.15 1.45 1.45 1.45 1.45 1.45 145 1 45 1 45 Downtown II TIF Fund 1 00 Maple Ave Garage 1 00 1.00 Parking Systems 11 00 11 00 13.00 13.00 1300 13.00 1300 1300 1400 14.50 Special Engineering 3 50 - Water 42.50 4250 4250 4400 4400 4400 4400 43.00 43.00 4300 Sewer 13.50 13 50 1350 1400 14.00 1400 1400 14,00 13 50 1400 Fleet Services 16,60 17.00 1700 1700 17,00 1700 1700 1700 17.00 1700 Insurance Fund - 200 1 30 1.30 1 30 1.30 Total Other Funds 92.55 89.15 91.45 94.45 9595 9645 9675 95.75 97,25 9925 Total All Funds 822.15 835.12 838.59 86502 88627 873.95 85878 871.30 881.43 88424 Source: City Human Resource department 149 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year Government Unit City of Evanston Consolidated Elections Cook County Cook County Forest Preserve District Suburban T B Sanitarium Metropolitan Water Reclamation District North Shore Mosquito Abatement District Evanston Township Community College 535 School District 202 School District 65 Total tax rate for property not in park district or special service district Percent of total tax rate levied by City of Evanston Source: Cook County Assessor's office 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2059.2069 1 888 1 934 2033 1.628 1 610 1 698 1 528 1 491 - 0.027 - 0.023 - 0.032 - 0 029 - 0 014 0.989 0 919 0 911 0 854 0 824 0.746 0.690 0 630 0 593 0 533 0 074 0 074 0 072 0.070 0 069 0 067 0 061 0 059 0 060 0 060 0 008 0 008 0.008 0.008 0.008 0 007 0.006 0.004 0 001 0 005 0 492 0 451 0 444 0.419 0 415 0 401 0.371 0.361 0 347 0 315 0 011 0 011 0.011 0 011 0 011 0 010 0.009 0.009 0 008 0.008 0 076 0 077 0 072 0 072 0 077 0 064 0 062 0 065 0 056 0 055 0206 0.216 0.205 0203 0.213 0 186 0.179 0 186 0 161 0 158 2 992 3 107 2.905 2 865 2.977 2 469 2 349 2.444 2078 2023 4209 4 356 4.126 4 073 4 232 3 516 3 343 3 475 2.978 2,890 11 116 11 315 10 642 10 532 10.859 9 126 8 680 8.960 7.810 7 552 18 5% 18.3% 17.7% 18 4% 18.7% 17.8% 18 5% 19 0% 19 6% 19 7% - 150 - CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (in 100 cubic feet) Type of Customer Residential Industrial Commercial Government Total Total direct rate per 100 cubic feet Source: City Water department Fiscal year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Unavailable Unavailable 2,875,669 2,842,137 2,711,271 2,734,202 2,639,717 2,506,887 2,720,807 2,388,360 Unavailable Unavailable 42,440 42,748 41,895 37,076 36,015 22,010 20,096 16,307 Unavailable Unavailable 1,306,272 1,252,818 1,337,280 1,395,576 1,415,895 1,318,236 1,267,657 1,278,334 Unavailable Unavailable 97,565 101,021 113,349 112,007 90,908 86,096 109,121 96,777 - - 4,321,946 4,238,724 4,203,795 4,278,861 4,182,535 3,933,229 4,117,681 3,779,778 S 1.36 $ 1.47 $ 1.47 $ 1.47 $ 1,47 $ 1.47 $ 1.47 $ 1.47 $ 1.47 $ 1.47 - 151 - CITY OF EVANSTON, ILLINOIS Water Sold by major Customers Last Ten Fiscal Years Fiscal year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Type of Customer Evanston residents/businesses $ 5,152,353 $ 6,911,950 $ 6,774,380 $ 6,811,100 $ 6,606,091 $ 6,711,004 $ 6,665,158 $ 6,559,026 $ 6,706,644 $ 5,804,517 Village of Skokie 2,817,402 2,907,178 2,908,102 2,918,766 2,859,685 3,011,018 2,959,732 2,802,720 3,018,734 2,891,834 Northwest Water Commission 2,941,420 3,181,411 3,367,773 3,283,048 3,247,291 3,434,685 3,367,253 3,377,407 3,750,200 3,497,989 Total $10.91 I.175 $13.000.539 $13,050.255 S 13,012.914 $12,713,067 $13.156.707 $12,992.143 $12.739,15 3 $13.475.578 $12.194,340 Source: City Water department - 152 - CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years Calender Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Function/Proeram Police Violent Offenses 523 347 349 393 270 314 293 266 226 224 Property Offenses 7,146 5,311 4,819 4,858 4,174 4,122 3,318 3,145 2,965 2,942 911 Calls Received 30,672 29,006 27,893 29,052 37,201 55,125 55,383 56,650 56,650 55,795 Fire Emergency responses N/A 7,245 7,432 7,566 7,925 8,003 8,106 7,624 8,135 8,173 Fires extinguished N/A 280 259 247 227 218 225 199 287 220 Inspections N/A 2,620 2,600 2,940 3,071 2,664 2,194 1,496 1,320 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 unavailable unavailable 15,561 Picnic permits issued unavailable unavailable unavailable unavailable unavailable unavailable unavailable unavailable unavailable 319 Library Volumes in collection 411,804 422,966 437,104 455,481 463,263 477,768 491,064 520,458 486,031 495,575 Total volumes borrowed 897,823 872,791 858,343 839,701 878,990 887,773 868,837 880,561 893,841 897,141 Water New connections unavailable 23 44 55 68 47 70 59 74 104 Water main breaks unavailable 41 59 53 34 65 41 45 78 48 Average daily consumption (millions of gallons) 47.57 5127 50.33 47.16 37.16 36.22 37.74 37.31 41.44 4141 Peak daily consumption (millions of gallons) 81.63 73.40 80.74 69.12 75.50 75.50 73.17 60.98 80.46 66.49 Source: Various City departments Note: Indicators are not available for general government functions -153- CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years Calender Year 1997 1998 1999 2000 2001 2002 Function/Proeram Police Number of Stations 1 1 1 1 1 1 Budgeted Sworn Officers 162 162 162 162 161 161 Fire Stations 5 5 5 5 5 5 Other Public Works Streets (miles) 147.0 147.0 147.0 147.0 147.0 147.0 Highways (miles) N/A N/A N/A N/A N/A N/A Streetlights 5,641 5,641 5,641 5,641 5,641 5,641 Parks and Recreation Acreage 290 290 290 290 290 290 Playgrounds 51 51 51 51 51 51 Baseball/softball diamonds 18 18 18 18 18 18 Soccer/football fields 27 27 27 27 27 27 Community centers 5 5 5 5 5 5 Water Water mains (miles) 159.0 159.0 159.0 159.0 159.0 159.0 Fire hydrants 1,347 1,347 1,347 1,347 1,347 1,347 Storage capacity (millions of gallons) 22 22 22 22 22 22 Source: Various City departments Note: No capital asset indicators are available for the geveral government or library function -154- 2003 2004 2005 2006 1 1 1 1 161 161 161 162 5 5 5 5 147.0 147.0 147.0 147.0 N/A N/A N/A N/A 5,641 5,641 5,641 5,641 290 290 290 290 51 51 51 51 18 18 18 18 27 27 27 27 5 5 5 5 159.0 159.0 159.0 159.0 1,347 1,347 1,347 1,347 22 22 22 22 This page has been intentionally left blank. TAX INCREMENT FINANCING DISTRICT REQUIREMENTS This page has been intentionally left blank. N Vi rchow Krause &company INDEPENDENT AUDITOR'S COMPLIANCE REPORT To Honorable Lorraine H. Morton, Mayor and Members of the City Council Evanston, Illinois We have audited the financial statements of the City of Evanston for the year ended February 28, 2007, and have issued our report dated August 27, 2007. The financial statement is the responsibility of the management of the City of Evanston. Our responsibility is to express an opinion on the eligibility of the expenditures for costs incurred incidental to the implementation of the redevelopment plan and redevelopment projects associated with the Central Business, Howard Hartrey, Southwest, and Washington National Tax Increment Districts pursuant to subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The management of the City of Evanston is responsible for the City of Evanston's compliance with laws and regulations. In connection with our audit, referred to above, we selected and tested transactions and records to determine the City's compliance with State of Illinois Public Act 85-1142, "An Act in Relation to Tax Increment Financing." The results of our tests indicate that for the items tested the Central Business, Howard Hartrey, Southwest, and Washington National Tax Increment Districts complied with subsection (q) of Section 11- 74.4-3 of Public Act 85-1142. Oak Brook, Illinois August 27, 2007 Virchow, Krause & Company, LLP Certified Public Accountants & Consultants • An Independent Member of Baker Tilly International - 155 - This page has been intentionally left blank.