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HomeMy WebLinkAbout2005-2006 Annual Comprehensive Financial Report ILLINOIS Comprehensive Annual Financial Report For the Fiscal Year Ended February 28, 2006 CITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED FEBRUARY 28, 2006 Prepared by Finance Department Mary Rodino Kutz Interim Finance Director and Comptroller CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Principal Officials v Organization Chart vi Letter of Transmittal vii Certificate of Achievement for Excellence in Financial Reporting xiv INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Statement of Net Assets 11 Statement of Activities 13 Governmental Funds Balance Sheet 15 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances 16 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 17 Proprietary Funds Statement of Net Assets 18 Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 20 Proprietary Funds Statement of Cash Flows 21 Fiduciary Funds Statement of Net Assets 23 Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets 24 Notes to the Financial Statements Index for Notes to the Financial Statements 25 Notes to the Financial Statements 28 REQUIRED SUPPLEMENTARY INFORMATION Firefighters Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund - Schedules of Funding Progress 85 Firefighters and Police Pension Funds - Schedules of Employer Contribution 86 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 87 Notes to the Required Supplementary Information Firefighters and Police Pension Funds 88 INTRODUCTORY SECTION FINANCIAL SECTION i CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Notes to the Required Supplementary Information Digest of Changes - IMRF 88 Excess of Actual Expenditures over Budget in Individual Funds 88 GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 89 onmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 94 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 99 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 106 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 108 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 109 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 110 Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 111 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 112 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 113 Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 116 ii COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSETS STATEMENTS AND SCHEDULES FINANCIAL SECTION (Continued) CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 117 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 118 DEBT SERVICE FUNDS All Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) 119 PROPRIETARY FUND TYPES Nonmajor Proprietary Funds Statement of Net Assets 121 Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 123 Nonmajor Proprietary Funds Statement of Cash Flows 124 WATER FUND Schedule of Net Assets 126 Schedule of Changes in Net Assets - Reserved - Restricted Accounts 128 Operation and Maintenance Account - Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual 129 Operation and Maintenance Account - Schedule of Operating Revenues Budget and Actual 130 INTERNAL SERVICE FUNDS All Funds Statement of Net Assets 131 Combining Statement of Revenues, Expenses, and Changes in Net Assets 132 Combining Statement of Cash Flows 133 iii COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSETS STATEMENTS AND SCHEDULES (Continued) CITY OF EVANSTON, ILLINOIS Table of Contents PAGE CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Comparative Schedules by Source 135 Schedule by Function and Activity 136 Schedule of Changes by Function and Activity 138 139 140 141 143 Schedule of Insurance in Force 145 Property Tax Rates - Last Ten Levy Years 146 Property Tax Levies and Collections (City) - Last Ten Levy Years 147 Analysis of City Government Tax Levies - Last Ten Levy Years 148 Property Tax Rates per $100 - Direct and Overlapping Governments - Last Ten Levy Years 149 Equalized Assessed Valuation of Taxable Property - Last Ten Levy Years 150 Special Assessment Billings and Collections - Last Ten Levy Years 151 Ratio of Net General Obligation Bonded Debt to Equalized Assessed Valuation and Net General Obligation Debt Per Capita (City) - Last Ten Fiscal Years 152 Schedule of Direct and Overlapping Debt (City) 153 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures (City) - Last Ten Fiscal Years 154 Legal Debt Margin Information 155 Water Fund - Schedule of Revenue Bond Coverage - Last Ten Fiscal Years 156 Water Fund Revenues by Area - Last Seven Fiscal Years 157 Water Fund Pumpage by Area - Last Seven Fiscal Years 158 Water Fund - Ten Largest Water Customers 159 Water Fund - Water Allocations and Use - Projected 160 Demographic Statistics - Last Ten Fiscal Years 161 Construction Value and Property Value - Last Ten Fiscal Years 162 Principal Taxpayers - Ten Largest Taxpayers 163 Miscellaneous Statistics 164 Independent Accountants' Report on Compliance - Tax Increment Financing Districts 166 COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSETS STATEMENTS AND SCHEDULES (Continued) iv TAX INCREMENT FINANCING DISTRICT REQUIREMENTS General Governmental Expenditures - By Function/Program (City Funds) STATISTICAL SECTION (UNAUDITED) Government-wide Expenses by Function Government-wide Revenues General Governmental Revenues - By Source (City Funds) INTRODUCTORY SECTION CITY OF EVANSTON, ILLINOIS Principal Officials February 28, 2006 Arthur B. Newman Joseph N. Kent Lionel Jean-Baptiste Edmund B. Moran, Jr. Mellisa A. Wynne Stephen B. Engelman Steven J. Bernstein Ann Rainey Gene Feldman LEGISLATIVE CITY COUNCIL Lorraine H. Morton, Mayor EXECUTIVE Patricia P. Ford, Payroll Manager v Kevin Lookis, Revenue Manager Julia A.Carroll, City Manager FINANCE DEPARTMENT Mary Rodino Kutz, Interim Finance Director and Comptroller Bobbie Tolston, Director of Purchasing and Contracts MAYOR CITY COUNCIL HEALTH AND HUMAN SERVICES CITY OF EVANSTON ORGANIZATION CHART RESIDENTS CITY CLERK FINANCE PUBLIC WORKS LAW HUMAN RESOURCES LIBRARY HUMAN RELATIONS ADVISORY BOARDS AND COMMISSIONS FIRE POLICE FACILITIES MANAGEMENT RECREATION, PARKS AND FORESTRY CITY MANAGER COMMUNITY DEVELOPMENT vi 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org vii August 15, 2006 The Honorable Mayor Lorraine H. Morton, Members of the City Council City of Evanston, Illinois INTRODUCTION The Comprehensive Annual Financial Report (CAFR) of the City of Evanston (City) for the fiscal year ended February 28, 2006 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, 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. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org viii This report includes all the funds and capital assets of the City and its component unit. The Evanston 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 Miller, Cooper & Co., Ltd., 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, 2006, 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, 2006, 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 with Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It borders the north shore communities of Skokie and Wilmette. In 1863, the Village of Evanston was incorporated as a town and, after several annexations, in 1892, the town became a city. The City’s southern boundary was established with the City of Chicago and the 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org ix present City limits, encompassing an area of approximately eight square miles, have been essentially the same ever since. The City has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University, so named as it was established to serve the Northwest Territory. The University first platted the village which surrounded it. The State Legislature named the Village “Evanston” in honor of Dr. John Evans, the then president of the University’s Board. About 4,000 students live in university housing; another 900 live in fraternities and sororities. Roughly 800 live in two graduate student-housing complexes and approximately 3,500 live off-campus, 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 twelve departments. The Finance Director is responsible for the central financial functions of the City. The City provides a broad range of municipal services, including police and fire protection, streets and parking, water and sewer service, public libraries, social services, health and services for the aging, beaches, parks, and cultural events. The City is engaged in assisting in community and economic development and maintains land use controls. Schools are provided by separate school districts, governed by elected school boards. A portion of the City is served by the Skokie Park District. Wastewater treatment is provided by the Metropolitan Water Reclamation District. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org x Budget Process: The City’s fiscal year begins on March 1 of each year. The City Manager submits to the City Council a proposed operating budget in December for the fiscal year commencing the following March 1. The operating budget includes proposed expenditures and the means of financing those expenditures. The City Council holds public hearings (four Saturday morning public hearings were held prior to adoption of the 2006/07 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 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 2006/2007, the City projects that 46.05% ($85.7 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). 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org xi Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board. The accounts of the City are divided into separate self-balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. The City’s expenditures are monitored on a regular basis by the Finance Department and Budget Department. Disbursements are made only if an expenditure is within the authorized appropriation. For each 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. The plan will help focus the City over the next five years. Strategic planning determines where an organization is going, how it is going to get there, and measures successes over time. It ensures the most effective use of the organization’s limited resources by focusing the resources on key priorities. The thirteen goals of the City’s Strategic Plan address these visions with objectives that support the community’s values. • The Sherman Plaza redevelopment is nearing completion as of the date of this letter. The City’s new 1,500 space parking garage opened in June 2006. The garage is financed by the City’s general obligation bonds. 160,000 square feet of retail space is expected to open this month (August 2006) and occupancy in the 24-story condominium tower is expected to begin later this summer. • The City is in the final construction phase of a $200 million plus sewer system rehabilitation project that will connect the City’s sewer system with the Metropolitan Sanitary District of Greater Chicago’s deep tunnel project. • The 2005 Evanston Violent Crime Index is 42.5% below the national average. Reported aggravated assaults and batteries declined 66.4% from 1995 to 2005. Reported robberies declined 59.2% between 1996 and 2005. The 2005 Crime Index is at its lowest since 1970. • The City is in the process of developing an environmentally sensitive lakefront master plan as part of its Strategic Plan. • Additional 2006 initiatives include reconstruction of McCormick Boulevard, a major thoroughfare in the City, as well as traffic signal reconfiguration on Ridge Avenue. Both projects are partially financed through local as well as state and/or federal funding. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org xii FACTORS AFFECTING FINANCIAL CONDITION The following are factors which give a broader context to the financial information contained in this CAFR report. Local Economy: While the City has experienced a steady economy, it continues to see an unusually strong housing market. Building permits were 28% over budget, due to several large developments, including Sherman Plaza. State income taxes were 15% higher than the previous year and 13% higher than the budgeted amount. Sales tax for the fiscal year FY 2006 increased .3% from FY 2005. Much of this can be attributed to the continued growth of condominiums and economic development in the downtown area which continues to outpace both the state and national economies. Long-Term Financial Planning: The City continues to complete its Long-Range Sewer plan which is a complete overhaul of the City’s sewer system. This project will be completed in the next three years. Most of these improvements have been funded with low interest Illinois Environmental Protection Agency (IEPA) loans. The City continues to have a five-year Capital Improvements Program. 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 through a state-wide plan managed by the Illinois Municipal Retirement Plan (IMRF). The City has fully funded this plan. THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS A. B. C. D. E. USING THIS ANNUAL REPORT REPORTING THE CITY AS A WHOLE Government-wide Financial Statements The governmental activities revenue increased by $9,675,829 (or 8.29%). The expenditures increased by $21,608,824 (or 22.55%). The City of Evanston issued new debt in the amount of $29,270,000 during the current fiscal year. Of this $13,060,000 for the Sherman Plaza garage construction, $10,005,000 will be used to pay for capital improvements out of the Capital Improvement Fund. The total cost of all City programs increased by $20,705,311 or 17.16%. 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 ur oses. MANAGEMENT'S DISCUSSION AND ANALYSIS FEBRUARY 28, 2006 The City's annual report includes two government-wide financial statements. These statements provide both long- The business-type activities revenue increased by $2,518,211 (or 7.63%). The expenditures decreased by $903,513 (or 3.63%). 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 a e vii of this re or 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 net assets increased by $20,577,968 (or 9.21%) for the fiscal year reported (FY 2006). The governmental net assets increased by $4,756,524 (or 6.24% from Fy 2005) and the business-type activities net assets increased by $15,821,444 (or 10.75% from FY 2005). -3- The government-wide financial statements are presented on pages 11 - 14 of this report. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements Governmental funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, the focus is very different with fund statements, providing a distinctive view of the City's governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment o s endable resources for the near-term. The City has three kinds of funds: 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. 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. 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 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 rovided in this re ort. 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 rovided b the Cit 's tax a ers. 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 understandin the differences between these two ers ectives. -4- 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 89. Additional information on capital assets and long-term debt can be found in notes (to the financial statements 48 and 60 res ectivel . 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 28 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 85 - 88 o this re ort. The basic proprietary fund financial statements are presented on pages 18 - 22 of this report. Fiduciary funds such as the employee pension plans are reported in the fiduciary fund financial statements, but are excluded from the government-wide reporting. Fiduciary fund financial statements report resources that are not available to fund City rograms. Fiduciary fund financial statements report similarly to proprietary funds. The basic fiduciary fund financial statements are presented on pages 23 - 24 of this report. Notes to the financial statements Proprietary funds reported in the fund financial statements generally report services for which the City charges customers a fee. There are two kinds of proprietary funds. These are enterprise funds and internal service funds. Enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. Services such as the water utilities and the parking garages, are provided to customers external to the City organization. Internal service funds provide services and charge fees to customers within the City organization, such as equipment services (repair and maintenance of city vehicles) and the insurance fund. Because the City's internal service funds primarily serve governmental functions, they are included within the governmental activities of the government-wide financial statements. 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 bud et. The basic government fund financial statements are presented on pages 15 - 16 of this report. 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. -5- Financial Analysis of the City as a Whole 2006 2005 2006 2005 2006 2005 Current and Other Assets $132,931,957 $148,165,127 $39,038,968 $35,542,196 $171,970,925 $183,707,323 Capital Assets 177,431,799 140,959,825 271,180,593 264,856,918 448,612,392 405,816,743 Total Assets 310,363,756 289,124,952 310,219,561 300,399,114 620,583,317 589,524,066 Long-Term Liabilities 132,862,214 105,722,077 119,708,579 124,190,111 252,570,793 229,912,188 Other Liabilities 96,497,745 107,155,602 27,495,360 29,014,825 123,993,105 136,170,427 Total Liabilities 229,359,959 212,877,679 147,203,939 153,204,936 376,563,898 366,082,615 Net Assets Investment in Capital assets, net of Debt 34,426,799 426,491 128,692,273 114,442,311 163,119,072 114,868,802 Restricted 33,745,651 32,810,919 10,449,106 11,274,326 44,194,757 44,085,245 Unrestricted 12,831,347 43,009,863 23,874,243 21,477,541 36,705,590 64,487,404 Total Net Assets $81,003,797 $76,247,273 $163,015,622 $147,194,178 $244,019,419 $223,441,451 The City's combined net assets increased by $20,577,968 from FY 2005 - an increase from $223,441,451 to $244,019,419. STATEMENT OF NET ASSET Total Primary GovernmentBusiness-type ActivitiesGovernmental Activities The City's total revenues increased by $12,194,040 or 8.14%. The City's total cost of all programs was increased by $20,705,311. Governmental activities increased due to net revenues over expenditures that added monies to the fund reserves. The main reason for the net assets increase in business-type funds (water and sewer funds) was due to planned accumulated increases in balances in those funds for future debt service and ca ital ro ects. Governmental Funds: The governmental activities experienced a net increase of $4,756,524. This was mainly due to a surplus in the General Fund of revenues over expenditures and settlement of some major liabilities in the Insurance Fund. Increased accumulations of nonmajor governmental funds is due to high interest rates on investments and a surplus in revenues over ex enditures. Business Funds: The business-type activities experienced a net increase in net assets of $15,821,444. Most of the increase is attributable to the continued planned surpluses in the Sewer and Water Funds. The Sewer Fund increase is due to the need to accumulate cash to pay off future years' debt service on the over $100 million in Illinois Environmental Protection Agency (IEPA) loans the City has outstanding which have paid for the complete overhaul of the City's sewer system. The Water Fund continues to generate sufficient funds to subsidize the General Fund and pay for its accumulated depreciation. In spring 2005, demolition and construction began on the Sherman Plaza project. This project includes a new parking facility as well as high rise condominium and retail space. The Sherman Plaza parking facility will be finished and in o eration on June 2006. -6- 2006 2005 2006 2005 2006 2005 Revenue Program Revenues: Charges for services $27,663,692 $26,246,493 $34,626,625 $32,623,801 $62,290,317 $58,870,294 Operating grants and contributions 3,440,889 3,713,201 3,440,889 3,713,201 Capital grants and contributions 1,126,610 212,000 1,126,610 212,000 General Revenues: Sales taxes 14,096,471 13,984,119 14,096,471 13,984,119 Property taxes 46,177,463 38,738,232 46,177,463 38,738,232 Utility taxes 8,858,217 8,397,773 8,858,217 8,397,773 Other taxes 22,090,240 23,935,340 22,090,240 23,935,340 Investment income 2,996,804 1,547,399 896,246 380,859 3,893,050 1,928,258 Total Revenue 126,450,386 116,774,557 35,522,871 33,004,660 161,973,257 149,779,217 Expenses General management and support 19,536,566 14,450,761 19,536,566 14,450,761 Public safety 45,950,611 31,167,640 45,950,611 31,167,640 Public works 14,631,723 14,224,855 14,631,723 14,224,855 Health and human resources development 4,781,198 5,843,522 4,781,198 5,843,522 Recreation and cultural opportunities 19,791,683 18,276,621 19,791,683 18,276,621 Housing and economic development 6,850,300 6,757,476 6,850,300 6,757,476 Interest 5,874,030 5,086,412 5,874,030 5,086,412 Water 8,759,592 8,175,691 8,759,592 8,175,691 Sewer 9,219,174 8,781,361 9,219,174 8,781,361 Maple avenue garage 3,096,444 3,148,145 3,096,444 3,148,145 Motor vehicle parking system 2,903,968 4,777,494 2,903,968 4,777,494 Total Expense 117,416,111 95,807,287 23,979,178 24,882,691 141,395,289 120,689,978 Increase in net assets before transfer 9,034,275 20,967,270 11,543,693 8,121,969 20,577,968 29,089,239 Transfers (4,277,751) (1,243,758)4,277,751 1,243,758 Increase in net assets 4,756,524 19,723,512 15,821,444 9,365,727 20,577,968 29,089,239 Net Assets - Beginning 76,247,273 56,523,761 147,194,178 137,828,451 223,441,451 194,352,212 et Assets - Endin $81,003,797 $76,247,273 $163,015,622 $147,194,178 $244,019,419 $223,441,451 Governmental Activities STATEMENT OF CHANGES IN NET ASSET The following table provides a summary of the City's changes in net assets: Business-type Activities Total Primary Government -7- Financial Analysis of the City's Funds Governmental Funds Proprietary 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 $1,673,971. These increases are due to revenues significantly exceeding budgeted levels. The expenditures were slightly above budgeted levels and were maintained near budget due to monitoring o monthly budget reports and a concerted effort to reduce overtime expenditures. The revenue increase was due to record levels of real estate activity in Evanston which resulted in high real estate transfer tax revenues, building permit revenues, utility taxes revenues, and increases in sales tax. State shared revenues, such as income taxes and use taxes, continued to have solid increases as the economy starts to recover. The City Council has been diligent in assuring that one-time, nonrecurring revenues are not inserted into the operating budget. Additionally, the increase in the General Fund cash balance to a level of 10% has been achieved during the last three years. This, again, was a policy objective set by the City Council that has been achieved durin less than ideal economic conditions. The City's combined internal service funds net assets were $2,853,763 as of February 28, 2006. At March 1, 2005, the combined funds had a balance of $216,477. The combined governmental funds:Have combined fund balances of $63,660,726, an increase of $3,378,014 from prior year ($60,282,712). The increase was due to property taxes, hotel taxes, and amusement taxes received in FY2006. The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long term information about financial status. Major Proprietary Funds Internal Service Funds The main proprietary funds operated by the City are the Water, Sewer, and Parking Funds. The Water Fund remains stable without need for rate changes and are supported by external water sales to the Village of Skokie and the Northwest Water Commission. The Sewer Fund is in the final stages of the $200 million plus sewer renovation program which is being funded by IEPA loans that are being paid off over twenty years. The Motor Vehicle Parking system has a surplus o $136,087 as of Februar 28, 2006 due to increased arkin rates in the 2006 fiscal ear. 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 $95,635,375 as a year-end total, including $23,654,784 unrestricted, indicating availability for continuing City service requirements. Reserved fund balances include $62,643 committed to liquidate encumbrances remaining from prior years, $2,590,000 committed to Illinois Municipal Retirement Fund (IMRF) reserves, $2,576,360 committed to pay compensated absences, and $798,417 committed to other activities. The Washington National Tax Increment District Fund has a fund balance of $7,143,095, a decrease of $18,059,717 due to the continuous construction of Sherman Plaza Garage. The total ending balances of governmental funds show a decrease of $13,007,732 from the prior year. The decrease is primarily the result of continuing Sherman Garage construction and demolition activities. Major Governmental Funds -8- General Fund Budgetary Highlights Capital Assets Long-Term Debt Bond Ratings conomic Factors While the state's unemployment rate continues to be about 5.5% Evanston's is closer to 4.5%. Both state and Evanston sales tax increased in fiscal 2006. The City's housing market continued to boom with the largest year ever in real estate transfer tax receipts of over $4 million. For the sixth year in a row, the General Fund balance increased. The City's population increased 1.37% on the 2000 census to 74,239 over the last decade. Increased multi-family development in the last three years indicated that the number should continue to increase. 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, 2006, was $448,612,392. The total increase in this net investment was 26% for governmental and 2.0% for business-type activities. The overall increase was 10.5% 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. At the end of the fiscal year, the City had total bonded debt outstanding of $195,875,000. Of this amount, $79,111,196 is funded directly from property taxes. The other major component is $110,212,500, 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 $29.270 million in fixed rate general obligation bonds for capital improvement, the Sherman Plaza project, and to partially refund 1998 bonds. As a home rule government under Illinois law, there is no legal debt limit for the City. Readers desiring more detailed information on long-term debt should see Note 9 in the Notes to the Financial Statements. The City's general obligation bonds are rated Aaa and VIMG-1 by Moody's Investor Rating Service and AAA by Fitch Ratings. Evanston City Water Fund revenue bonds are rated Aa1 and AA for uninsured issues. 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 ara e ro ect. The Evanston economy continues to hold firm in spite of a state economy that continues to lag. Fiscal 2006 revenues were nearly 4.5% up from fiscal 2005, according to Illinois State Comptroller Dan Hynes. The Water Fund continues to generate $6,684,309 in cash flows from operating activities due to the sale of water to the Village of Skokie and the villages in the Northwest Water Commission. The City notified the Northwest Water Commission that it is exercising the right to reopen the long-term contract. Negotiations are ongoing. Half of the revenue is used to subsidize the General Fund and the remainder is used to finance capital improvements. The Sewer Fund is in the final stages of com letin an over $200 million sewer im rovement ro ram. The original budgets for the General Fund and other funds did not have to be amended this year. Actual expenditures in the General Fund slightly exceeded budgeted levels due to overtime expenditures in the Fire Department and several retirements in the Police Department. -9- 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.cit ofevanston.or -10- BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Statement of Net Assets Governmental Business-type Activities Activities Total Cash and equivalents $ 40,401,782 $ 5,703,164 $ 46,104,946 Investments 37,252,481 2,994,865 40,247,346 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 39,405,095 - 39,405,095 Accounts 95,220 4,550,915 4,646,135 Notes 6,155,871 - 6,155,871 Special assessments 769,274 - 769,274 Accrued interest 159,818 90,434 250,252 Other 1,847,709 32,173 1,879,882 Due from other governments 6,359,177 - 6,359,177 Due from other agency 4,488 - 4,488 Internal balances 200,065 (200,065) - Inventories 280,977 660,175 941,152 Restricted assets Cash and equivalents and investments - 24,898,307 24,898,307 Capital assets Capital assets not being depreciated 25,252,516 3,297,937 28,550,453 Construction in progress 41,657,942 18,279,118 59,937,060 Capital assets (net of accumulated depreciation) 110,521,341 249,603,538 360,124,879 Other assets - 309,000 309,000 Total Assets $ 310,363,756 $ 310,219,561 $ 620,583,317 The accompanying notes are an integral part of this statement. February 28, 2006 Primary Government Assets - 11 - Governmental Business-type Activities Activities Total Vouchers payable $ 5,374,776 $ 740,832 $ 6,115,608 Accrued payroll 1,307,488 94,860 1,402,348 Interest payable - 48,897 48,897 Other payables 138,443 - 138,443 Due to other governments 93,855 - 93,855 Due to pension funds 3,288,349 - 3,288,349 Payable from restricted assets Vouchers payable - 2,163,820 2,163,820 Interest payable - 1,113,221 1,113,221 Unearned revenues 26,342,499 - 26,342,499 Noncurrent liabilities Payable from restricted assets - due within one year - 8,703,074 8,703,074 Due within one year 59,952,335 14,630,656 74,582,991 Due in more than one year 132,862,214 119,708,579 252,570,793 Total Liabilities 229,359,959 147,203,939 376,563,898 Investment in capital assets, net of related debt 34,426,799 129,083,940 163,510,739 Restricted Pensions - IMRF 2,590,000 - 2,590,000 Culture and recreation 581,990 - 581,990 Debt service 27,780,874 10,449,106 38,229,980 Other 216,427 - 216,427 Unrestricted 15,407,707 23,482,576 38,890,283 Total Net Assets $ 81,003,797 $ 163,015,622 $ 244,019,419 Primary Government Liabilities Net Assets - 12 - CITY OF EVANSTON, ILLINOIS Statement of Activities Functions/Programs Governmental activities: General management and support $ 19,536,566 $ 13,060,396 $ 150,624 Public safety 45,950,611 428,613 26,372 Public works 14,631,723 168,644 2,252,320 Health and human resource development 4,781,198 1,158,983 964,133 Recreation and cultural opportunities 19,791,683 4,310,449 47,440 Housing and economic development 6,850,300 8,536,607 - Interest 5,874,030 - - Total governmental activities 117,416,111 27,663,692 3,440,889 Business-type activities: Water 8,759,592 13,961,436 - Sewer 9,219,174 16,077,170 - Maple avenue garage fund 3,096,444 1,622,575 - Motor vehicle parking system 2,903,968 2,965,444 - Total business-type activities 23,979,178 34,626,625 - Total primary governmen $ 141,395,289 $ 62,290,317 $ 3,440,889 General revenues: Property and other taxes Gain on sale of capital assets Miscellaneous Investment incom Transfers Total general revenues and transfers Change in net assets Net assets - beginning et assets - endin The accompanying notes are an integral part of this statement. - 13 - Expenses Services Contributions Charges for Grants and Year ended February 28, 2006 Program Revenues Operating $ 648,910 $ (5,676,636) $ - $ (5,676,636) - (45,495,626) - (45,495,626) - (12,210,759) - (12,210,759) - (2,658,082) - (2,658,082) 477,700 (14,956,094) - (14,956,094) - 1,686,307 - 1,686,307 - (5,874,030) - (5,874,030) 1,126,610 (85,184,920) - (85,184,920) - - 5,201,844 5,201,844 - - 6,857,996 6,857,996 - - (1,473,869) (1,473,869) - - 61,476 61,476 - - 10,647,447 10,647,447 $ 1,126,610 (85,184,920) 10,647,447 (74,537,473) 89,810,392 - 89,810,392 68,950 - 68,950 1,343,049 - 1,343,049 2,996,804 896,246 3,893,050 (4,277,751) 4,277,751 - 89,941,444 5,173,997 95,115,441 4,756,524 15,821,444 20,577,968 76,247,273 147,194,178 223,441,451 $ 81,003,797 $ 163,015,622 $ 244,019,419 Total - 14 - Business-type Contributions Activities Activities Grants and Governmental Net (Expense) Revenue and Capital Changes in Net Assets CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet Washington National Tax Nonmajor Total Increment Governmental Governmental General District Funds Funds Cash and equivalents 8,969,943$ 5,013,386$ 26,285,028$ 40,268,357$ Investments 8,954,247 3,994,526 23,333,176 36,281,949 Receivables Property taxes (net of allowance) 14,226,522 - 25,178,573 39,405,095 Accounts - - 95,220 95,220 Notes - - 6,155,871 6,155,871 Special assessments - - 769,274 769,274 Accrued interest 66,343 - 93,475 159,818 Other 1,628,327 - 199,357 1,827,684 Due from other governments 6,063,406 - 295,771 6,359,177 Due from other funds 1,480,988 7,063 2,162,238 3,650,289 Total Assets 41,389,776$ 9,014,975$ 84,567,983$ 134,972,734$ Liabilities Vouchers payable 2,450,860$ 1,871,876$ 787,647$ 5,110,383$ Accrued payroll 1,268,681 - 14,470 1,283,151 Compensated absences payable 338,417 - - 338,417 Other 136,458 - 1,985 138,443 Due to other governments 26,390 - 67,465 93,855 Due to other funds 2,910,032 4 3,120,575 6,030,611 Unearned revenues 9,427,384 - 16,915,115 26,342,499 Total Liabilities 16,558,222 1,871,880 20,907,257 39,337,359 Fund Balances Reserved 6,027,420 - 33,936,745 39,964,165 Unreserved Capital project funds 320,196 7,143,095 24,553,135 32,016,426 Special revenue funds - - 5,170,846 5,170,846 General fund 18,483,938 - - 18,483,938 Total Fund Balances 24,831,554 7,143,095 63,660,726 95,635,375 Total Liabilities and Fund Balances 41,389,776$ 9,014,975$ 84,567,983$ 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.170,354,102 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. (187,839,443) The net assets of the internal service fund are included in the governmental activities in the statement of net assets.2,853,763 Net assets of governmental activities 81,003,797$ The accompanying notes are an integral part of this statement. February 28, 2006 Assets Liabilities and Fund Balances - 15 - CITY OF EVANSTON, ILLINOIS Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance Washington National Tax Nonmajor Total Increment Governmental Governmental General District Funds Funds Revenues Taxes 41,910,555$ -$ 33,750,523$ 75,661,078$ Licenses and permits 9,164,065 - - 9,164,065 Special assessments - - 545,655 545,655 Intergovernmental 15,254,462 - 5,851,938 21,106,400 Charges for services 6,904,796 - - 6,904,796 Fines and forfeits 3,781,020 - - 3,781,020 Investment income 575,281 740,966 1,653,547 2,969,794 Miscellaneous 4,387,070 - 1,425,324 5,812,394 Total Revenues 81,977,249 740,966 43,226,987 125,945,202 Expenditures Current General management and support 13,905,339 345,738 1,350,004 15,601,081 Public safety 29,912,381 - 9,182,154 39,094,535 Public works 11,687,269 - 1,554,835 13,242,104 Health and human resource development 4,565,684 - - 4,565,684 Recreation and cultural opportunities 16,408,586 - 117,000 16,525,586 Housing and economic development 2,904,682 - 3,740,953 6,645,635 Pensions 4,627,930 - - 4,627,930 Debt service Principal - - 7,690,000 7,690,000 Interest - - 5,856,892 5,856,892 Fiscal agent fees - - 322,825 322,825 Capital outlay - 32,373,714 9,712,853 42,086,567 Total Expenditures 84,011,871 32,719,452 39,527,516 156,258,839 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,034,622) (31,978,486) 3,699,471 (30,313,637) Other Financing Sources (Uses) Transfers in 4,966,843 5,347 2,060,108 7,032,298 Transfers out (1,258,250) - (13,174,149) (14,432,399) Capitalized interest income - - 354,581 354,581 Capitalized interest expense - - (354,581) (354,581) Issuance of debt - 13,060,000 16,210,000 29,270,000 Premiums and discounts - 853,422 1,208,973 2,062,395 Escrow funding - - (6,626,389) (6,626,389) Total Other Financing Sources (Uses) 3,708,593 13,918,769 (321,457) 17,305,905 Net Change in Fund Balances 1,673,971 (18,059,717) 3,378,014 (13,007,732) Fund Balances -Beginning of Year 23,157,583 25,202,812 60,282,712 108,643,107 Fund Balances - End of Year 24,831,554$ 7,143,095$ 63,660,726$ 95,635,375$ The accompanying notes are an integral part of this statement. Year ended February 28, 2006 - 16 - CITY OF EVANSTON, ILLINOIS Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ (13,007,732) 35,554,082 14,040,000 (31,332,395) (3,134,717) Internal service funds are reported separately in the fund financial statements. 2,637,286 Change in net assets of governmental activitie $ 4,756,524 The accompanying notes are an integral part of this statement. - 17 - 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 ex ense. This is the amount b which ca ital outla s exceeded de reciation in the current eriod. The repayment of the principal of long-term debt consumes the current financial resources o governmental funds. These transactions, however, have no effect on net assets. Issuance of 2005 Bonds provides current financial resources to governmental funds, while the repayment of the principal of long term debt consumes the current financial resources o governmental funds. Neither transaction has any effect on net assets. Governmental funds also re ort the effect of bonds remiums discounts and similar items when debt is first issued. 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. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended February 28, 2006 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Net Assets Governmental Activities- Nonmajor Internal Proprietary Service Water Sewer Funds Total Funds Current Assets Cash and equivalents 442,062$ -$ 5,261,102$ 5,703,164$ 133,425$ Investments - - 2,994,865 2,994,865 970,532 Restricted cash and equivalents and investments 479,365 10,709,549 - 11,188,914 - Receivables Accounts - billed 1,052,876 412,352 - 1,465,228 - Accounts - unbilled 864,508 2,221,179 - 3,085,687 - Accrued interest - 64,901 25,533 90,434 - Other 20,487 - 11,686 32,173 20,025 Due from other funds 277 11,906 60,070 72,253 281,650 Inventories 527,163 133,012 - 660,175 280,977 Total Current Assets 3,386,738 13,552,899 8,353,256 25,292,893 1,686,609 Noncurrent Assets Restricted cash and equivalents and investments 10,582,066 3,127,327 - 13,709,393 - Capital Assets Land 555,415 - 2,742,522 3,297,937 - Construction in progress 1,027,973 17,251,145 - 18,279,118 - Capital assets being depreciated 58,187,210 198,922,455 35,626,757 292,736,422 19,766,744 Less accumulated depreciation (14,127,102) (22,822,798) (6,182,984) (43,132,884) (12,689,047) Total Capital Assets 45,643,496 193,350,802 32,186,295 271,180,593 7,077,697 Other Assets Receivables Notes - - 309,000 309,000 - Total Noncurrent Assets 56,225,562 196,478,129 32,495,295 285,198,986 7,077,697 Total Assets 59,612,300$ 210,031,028$ 40,848,551$ 310,491,879$ 8,764,306$ The accompanying notes are an integral part of this statement. February 28, 2006 Business-type Activities- Enterprise Funds Assets - 18 - Governmental Activities- Nonmajor Internal Proprietary Service Water Sewer Funds Totals Funds Current Liabilities Vouchers payable 291,543$ 229,220$ 220,069$ 740,832$ 264,393$ Vouchers payable - restricted 376,850 1,786,970 - 2,163,820 - Accrued payroll 60,576 17,137 17,147 94,860 24,337 Interest payable - - 48,897 48,897 - Interest payable - restricted 24,182 1,089,039 - 1,113,221 - Revenue bonds payable 391,667 - - 391,667 - Revenue bonds payable - restricted 78,333 - - 78,333 - Compensated absences payable 387,900 79,131 108,357 575,388 102,575 General obligation bonds payable - - 13,685,000 13,685,000 - General obligation bonds payable - restricted - 2,050,000 - 2,050,000 - Unamortized bond expenses and discount - - (21,399) (21,399) - Claims payable - - - - 862,114 Notes payable - Sewer IEPA Loans - restricted - 6,574,741 - 6,574,741 - Due to other funds 28,863 230,277 13,178 272,318 985,124 Total Current Liabilities 1,639,914 12,056,515 14,071,249 27,767,678 2,238,543 Long-Term Liabilities Notes payable - Sewer IEPA Loans - 94,825,934 - 94,825,934 - General obligation bonds payable - 18,520,000 3,130,000 21,650,000 - Revenue bonds payable 3,240,000 - - 3,240,000 - Unamortized bond expenses and discount 18,064 (25,419) - (7,355) - Claims payable - - - - 3,672,000 Total Long-Term Liabilities 3,258,064 113,320,515 3,130,000 119,708,579 3,672,000 Total Liabilities 4,897,978 125,377,030 17,201,249 147,476,257 5,910,543 Invested in capital assets, net of related debt 42,307,099 71,405,546 15,371,295 129,083,940 7,077,697 Restricted for debt service 10,449,106 - - 10,449,106 - Unrestricted 1,958,117 13,248,452 8,276,007 23,482,576 (4,223,934) Total net assets 54,714,322$ 84,653,998$ 23,647,302$ 163,015,622$ 2,853,763$ Business-type Activities- Enterprise Funds Liabilities Net Assets - 19 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Governmental Activities- Nonmajor Internal Proprietary Service Water Sewer Funds Total Funds Operating Revenues Charges for services 13,475,577$ 16,027,055$ 4,575,637$ 34,078,269$ 6,614,300$ Miscellaneous 485,859 50,115 12,382 548,356 27,661 Total Operating Revenues 13,961,436 16,077,170 4,588,019 34,626,625 6,641,961 Operating Expenses Excluding Depreciation Administration 634,737 - 1,052,335 1,687,072 - Operations 6,071,128 2,130,179 3,285,828 11,487,135 6,476,989 Total Operating Expenses Excluding Depreciation 6,705,865 2,130,179 4,338,163 13,174,207 6,476,989 Operating Income (Loss) Before Depreciation 7,255,571 13,946,991 249,856 21,452,418 164,972 Depreciation 1,345,848 2,665,388 844,028 4,855,264 1,388,947 Operating Income (Loss) 5,909,723 11,281,603 (594,172) 16,597,154 (1,223,975) Nonoperating Revenues (Expenses) Investment income 419,530 300,856 175,860 896,246 27,010 Interest expense (171,977) (4,125,309) (803,662) (5,100,948) (17,138) Bond expenses and amortization of discount (1,401) (6,648) (14,559) (22,608) - Gain (loss) on disposition of assets (242,851) - - (242,851) 145,739 Total Nonoperating Revenues (Expenses) 3,301 (3,831,101) (642,361) (4,470,161) 155,611 Income (Loss) Before Transfers 5,913,024 7,450,502 (1,236,533) 12,126,993 (1,068,364) Transfers In (Out) Central Business Tax Increment District Fund 268,449 899,602 4,500,000 5,668,051 51,650 Insurance Fund (3,300,000) - - (3,300,000) - Fleet Fund - (230,000) - (230,000) - Capital Improvement Fund 3,300,000 - - 3,300,000 105,000 Water Fund - - - - 3,300,000 Sewer Fund - - - - 230,000 Economic Development Fund - - 650,000 650,000 - General Fund (2,693,600) - 300,000 (2,393,600) 19,000 Total Transfers In (Out) (2,425,151) 669,602 5,450,000 3,694,451 3,705,650 Change in Net Assets 3,487,873 8,120,104 4,213,467 15,821,444 2,637,286 Total Net Assets - Beginning of Year 51,226,449 76,533,894 19,433,835 147,194,178 216,477 Total Net Assets - End of Year 54,714,322$ 84,653,998$ 23,647,302$ 163,015,622$ 2,853,763$ The accompanying notes are an integral part of this statement. Year ended February 28, 2006 Business-type Activities- Enterprise Funds - 20 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Governmental Activities- Nonmajor Internal Proprietary Service Water Sewer Funds Total Funds Cash Flows from Operating Activities Receipts from customers and users 14,011,895$ 15,940,864$ 4,561,852$ 34,514,611 6,649,928$ Receipts from interfund services provided 348,296 (7,237) 71,571 412,630 (281,406) Payments to suppliers (5,821,382) (764,321) (3,196,571) (9,782,274) (12,625,001) Payments to employees (546,398) 9,925 (1,011,149) (1,547,622) (1,982,462) Payments for interfund services provided (1,308,102) - (142,384) (1,450,486) 978,190 Net Cash Provided by (Used for) Operating Activities 6,684,309 15,179,231 283,319 22,146,859 (7,260,751) Cash Flows from Noncapital Financing Activities Transfers In (Out) Central Business Tax Increment District Fund 268,449 899,602 4,500,000 5,668,051 51,650 Insurance Fund (3,300,000) - - (3,300,000) - Fleet Fund - (230,000) - (230,000) - Capital Improvement Fund 3,300,000 - - 3,300,000 105,000 Water Fund - - - - 3,300,000 Sewer Fund - - - - 230,000 Economic Development Fund - - 650,000 650,000 - General Fund (2,693,600) - 300,000 (2,393,600) 19,000 Net Cash Provided by (Used for) Noncapital Financing Activities (2,425,151) 669,602 5,450,000 3,694,451 3,705,650 Cash Flows from Capital and Related Financing Activities Sale of capital assets - - - - 152,196 Acquisition and construction of capital assets (3,119,850) (8,352,942) 51,000 (11,421,792) (2,313,297) Principal paid on revenue bonds (865,000) - - (865,000) - Interest paid on revenue bonds (177,355) - - (177,355) - Principal paid on general obligation bonds - (1,925,000) (4,345,000) (6,270,000) (450,000) Interest paid on general obligation bonds - (1,276,080) (803,662) (2,079,742) (22,850) Principal paid on IEPA loans - (5,975,259) - (5,975,259) - Interest paid on IEPA loans - (2,849,228) - (2,849,228) - Proceeds from IEPA loans - 5,175,923 - 5,175,923 - Net Cash (Used for) Capital and Related Financing Activities (4,162,205) (15,202,586) (5,097,662) (24,462,453) (2,633,951) Cash Flows from Investing Activities Proceeds from sales and maturities of investments - - - - 10,300,000 Purchase of investments - - - - (4,227,010) Interest income 419,530 300,856 175,860 896,246 27,010 Net Cash Provided by Investing Activities 419,530 300,856 175,860 896,246 6,100,000 Net Increase (Decrease) in Cash and Equivalents 516,483 947,103 811,517 2,275,103 (89,052) Cash and Equivalents Beginning of year 10,987,010 12,889,773 7,444,450 31,321,233 222,477 End of yea 11,503,493$ 13,836,876$ 8,255,967$ 33,596,336$ 133,425$ Reconciliation Cash and equivalents Unrestricted 921,427$ 10,709,549$ 8,255,967$ 19,886,943$ 133,425$ Restricted 10,582,066 3,127,327 - 13,709,393 - 11,503,493$ 13,836,876$ 8,255,967$ 33,596,336$ 133,425$ The accompanying notes are an integral part of this statement. Continued Year ended February 28, 2006 Business-type Activities- Enterprise Funds - 21 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Governmental Activities- Nonmajor Internal Proprietary Service Water Sewer Funds Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) 5,909,723$ 11,281,603$ (594,172)$ 16,597,154$ (1,223,975)$ Depreciation 1,345,848 2,665,388 844,028 4,855,264 1,388,947 Changes in assets and liabilities Other receivables (20,487) - (634) (21,121) 7,967 Accounts receivable 70,946 (89,875) - (18,929) - lnterfund receivable 348,296 (7,237) 71,571 412,630 (281,406) Inventories (47,699) (433) - (48,132) (26,543) Accrued interest receivable - (46,431) (25,533) (71,964) - Compensated absences 76,579 7,682 36,891 121,152 2,556 Accrued payroll 11,760 2,243 4,295 18,298 1,766 lnterfund payable (1,308,102) - (142,384) (1,450,486) 978,190 lnterfund payable (restricted) - (23,668) - (23,668) - Vouchers payable (68,776) 195,873 96,313 223,410 79,156 Vouchers payable (restricted) 366,221 1,172,250 - 1,538,471 - Interest payable - 21,836 (7,056) 14,780 - Claims payable - - - - (8,162,670) Due to other governments - - - - (24,739) Net Cash Provided by (Used for) Operating Activities 6,684,309$ 15,179,231$ 283,319$ 22,146,859$ (7,260,751)$ The accompanying notes are an integral part of this statement. Business-type Activities- Enterprise Funds - 22 - Year ended February 28, 2006 CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets Special Assessmen Pension Agency Trust Funds Fund Assets Cash and short-term investments 15,830,112$ 21,073$ Receivables Accrued interest 279,071 - Due from other funds 3,288,349 - Total Receivables 3,567,420 - Investments, at fair value U.S. Government obligations 37,923,588 - Common stock 6,141,193 - Mutual funds 35,595,129 - Total Investments 79,659,910 - Total Assets 99,057,442 21,073 Liabilities Vouchers payable 3,162 - Due to special assessment bondholders - 21,073 Total Liabilities 3,162 21,073 et assets held in trus 99,054,280$ -$ The accompanying notes are an integral part of this statement. February 28, 2006 - 23 - CITY OF EVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Pension Trust Funds Additions Contributions Employer 7,930,740$ Plan members 1,764,322 Total contributions 9,695,062 Investment income Net appreciation in fair value of investments 3,433,599 Interest 2,482,993 Total investment income 5,916,592 Less investment expense 256,261 Net investment income 5,660,331 Total additions 15,355,393 Deductions Benefits 9,758,097 Refunds of contributions 81,538 Administrative expense 58,814 Total deductions 9,898,449 Net increase 5,456,944 Net assets held in trust for pension benefits Beginning of year 93,597,336 End of yea 99,054,280$ The accompanying notes are an integral part of this statement. Year ended February 28, 2006 - 24 - CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Note 1. Summary of Significant Accounting Policies Page A. Reporting Entity 28 B. Government-wide and Fund Financial Statements 29 C. Fund Accounting 30 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 31 E. Cash and Equivalents 34 F. Investments 34 G. Inventories 34 H. Capital Assets 34 I. Compensated Absences 35 J. Long-Term Obligations 35 K. Self-Insurance 36 L. Property Taxes 36 M. Fund Equity 37 N. Interfund Transactions 37 O. Use of Estimates 37 Note 2. Reconciliation of Government-wide and Fund Financial Statements A. 38 B. 38 Note 3. Stewardship, Compliance, and Accountability A. Budgetary Information 40 B. Deficit Fund Equity 42 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 42 B. Pooling of Cash and Investments 42 C. Types of Investments 43 D. Deposits 45 E. Reconciliation of Unrestricted and Restricted Cash and Investments 45 Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government- wide Statement of Activities -25- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements (continued from previous page) Note 5. Receivables A. Summary of Receivables 47 B. Notes Receivable – Special Revenue Funds 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 Note 8. Operating Leases 59 Note 9. Long-Term Debt A. Changes in Long-Term Debt 60 B. General Obligation Bonds Payable 62 C. Special Service District Bonds Payable 63 D. Revenue Bonds Payable 64 E. Notes Payable – Sewer IEPA Loans 64 F. Prior Years' General Obligation Bond Defeasances 65 G. Prior Years' Special Service District #5 Bond Defeasances 65 Note 10. Fund Equity A. Restrictions of Retained Earnings - Water Fund 66 B. Restrictions of Fund Equity 67 C. 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 -26- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements (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 76 B. Funding Status and Progress 77 C. Annual Pension Cost 77 Police and Firefighters' Pension Plans D. Plan Descriptions 79 E. Summary of Significant Accounting Policies - Basis of Accounting 80 - Method Used to Value Investments 80 F. Contributions and Reserves 80 G. Concentration of Investments 81 H. Three-Year Trend Information – Pension Trust Funds 82 I. Pensions - Detailed Statement of Net Assets 83 J. Pensions - Detailed Statement of Changes in Net Assets 84 -27- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant of the City's accounting policies are described below. A. Reporting Entity Blended Component Unit: The City was incorporated in 1863. The City operates under a Council-Manager form of government,is a home rule municipalityas definedby Illinoisstate law, and provides the followingservices as authorized by its charter: general management and support, public safety, public works, health and human resource development, recreational and cultural opportunities, and housing and economic development. As required by GAAP, these financial statements present the City (the primary government)and its component unit, an entity for which the City is considered to be financially accountable. Although the component unit is legally a separate entity, it is governed by the same board; therefore, data from this unit is blended with data of the City. The financial statements of the City of Evanston (City) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The 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 individualsas 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 responsiblefor Township funds and for the administrationof 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. -28- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued Complete financial statements for the Township may be obtained at the following address: Town of the City of Evanston 1910 Main Street Evanston, Illinois 60201 Joint Ventures: B. Government-wide and Fund Financial Statements The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiablewith a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. The City participates in three joint ventures, which are reported as nonequitygovernmentaljoint 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. The government-widefinancial statements (i.e., the statement of net assets and the statement of activities) report informationon all of the nonfiduciaryactivities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Township is includedin 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, 2005. This report is the most recent one available. -29- 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 C. Fund Accounting Separate financial statements are provided for governmentalfunds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-widefinancial 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. 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 projects funds), and the servicingof general long-termdebt (debt service funds). The general fund is used to account for all activities of the City not accounted for in some other fund. All Township funds are considered special revenue funds within the governmental funds category. Fiduciary funds are used to account for assets held on behalf of outside parties, includingother 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. Agencyfunds generallyare 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. 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 withinthe City (internal service funds). Internal servicefunds are includedwith the governmentalfunds on the government-wide financial statements. 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 managementby segregating transactions related to certain governmentfunctions or activities. Funds are classified into three categories: governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." -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 Taxes Fines Property Traffic fines Sales (Home Rule) Utility Intergovernmental Personal property Motor fuel tax allotments Grants Supplemental Security Income reimbursements Licenses Income taxes Sales taxes Use tax Franchise fees Charges for services Investment income Recycling program fees and sales The government-widefinancial statements are reported using the economicresources measurementfocus 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. Governmentalfund financial statements are reported using the current financial resources measurementfocus 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 recordedwhena liability is incurred, as under accrual accounting. However, debt service expenditures,as wellas 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 a so have been recognized as revenues of the current fiscal period. -31- 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 The City reports the following major governmental funds: The City reports the following major proprietary funds: Additionally, the City reports the following fund types: The Washington National Tax Increment District Fund accounts for the costs of redevelopmentof this special taxing district. Financing is provided from the general obligation bonds and note proceeds. 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. Governmentalfunds report unearned revenue in connectionwith receivables for revenues that are not considered to be available to liquidate liabilities of the current period. 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. The Sewer Fund accounts for the provision of sewer repair and improvementservices to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, financing, and billing and collection. The Water Fund accounts for the provision of water services to the residents of the City and the sale of water to the Villageof Skokie, Illinois, and the Northwest Water Commission. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operation, maintenance, financing and related debt service, and billing and collection. All other revenue items are considered to be measurable and available only when cash is received by the City. -32- 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 collectedwill 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 pronouncementsas well as relevant Financial Accounting Standards Board (FASB) pronouncementsissued on or before November30, 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 nonoperatingitems. Operating revenuesand 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 enterpri 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. Unearnedrevenuesalso arise when resources are receivedby 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 recognitioncriteria 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. -33- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued E. Cash and Equivalents F. Investments G. Inventories H. Capital Assets Cash and equivalentsrepresent cash on hand, cash depositedin interest-bearingand noninterest-bearingchecking accounts, and investments in money markets, certificates of deposit, and treasury obligations with maturities of three months or less at the date of acquisition, and cash deposited with the Illinois Funds. The costs of normal maintenanceand 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 implementationof GASB 34 has been reported. Investmentsconsist of certificates of deposit, treasury 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 are purchased at a premium or discount which is amortized over the life of the investment. This valuation method approximates fair value. Inventories in the Water, Sewer, and Fleet Service Funds are valued at the lower of cost (first-in, first-out) or market. Inventory amounts are recorded on the basis of a physical count. Capital assets, which include property, plant, and equipment and infrastructure assets (e.g. roads, sidewalks, trails, bridges, and similar items), are reported in the applicable governmentalor business-typeactivities columns in the government-widefinancial 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 improvementswith 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. Major outlays for capital assets and improvementsare 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. -34- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued H. Capital Assets - Continued Description Description Years Land improvements Buildings and improvements 10-50 Leasehold improvements Office equipment and furniture 5-15 Plant Machinery and equipment 5-15 Transmission and distribution Infrastructure 30-100 system Library collections 7 Sewer system and underground lines Parking meters I. Compensated Absences J. Long-Term Obligations 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. In the government-wide financial statements and proprietary fund types in the fund financial statements, long-te debt and other long-termobligations are reported as liabilities in the applicable governmentalactivities, business- type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. It is the City’s policy to permit employeesto accumulate earned but unused vacation and sick pay benefits. All payments due in the event of terminationare accrued whenincurred in the government-wideand proprietary fund financial statements. The General Fund has been used in prior years to liquidate the liability for compensated absences. 20-100 5-100 75-100 15 Years 10-100 10-100 Property, plant, and equipmentare depreciated using the straight-line method over the followingestimateduseful lives: -35- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K. Self-Insurance L. Property Taxes The property tax calendar for Cook County is as follows: Lien Date January 1 of Levy Year Levy Date December of Levy Year First Installment Due Date (one-half of prior bill) March 1 of Year following Levy Year Second Installment Due Date (balance of total bill) August or September of Year following Levy Year The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2004 property tax levy that will not be collectedwithin 60 days of the Township's March 31, 2005 year-end. A 5% allowance for loss is reflected in the Township financial statements. The City is self-insured to certain limits for general liability claims and for workers' compensationinsurance. A liability is recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims liabilitiesare based on estimates of the ultimate cost of reported claims includingfuture claims adjustment expenses. General liability and workers' compensation claims are paid out of the Insurance Fund. Property tax revenues are recognizedwhen they become both measurable and available. On this basis, property tax revenue includes all cash distributions of property tax receivedduring the fiscal year betweenMarch 1, 2005 and February 28, 2006 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. 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. -36- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued M. Fund Equity N. Interfund Transactions O. Use of Estimates In the fund financial statements, governmentalfunds report reservations of fund balance for amounts that are not available for appropriation or are legallyrestricted by outside parties for use for a specific purpose. Designations of fund balance represent management plans that are subject to change. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Transactions that constitute reimbursements to a fund for expenditures/expensesinitially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expensesin the fund that is reimbursed. All other interfund transactions are reported as operating transfers. -37- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. General obligation bonds payable $ 158,490,000 Special service district bonds payable 3,335,000 Bonds premium liability 4,675,953 Compensated absences payable 8,149,132 Pension contributions payable 13,189,358 Net adjustments to reduce fund balance – total governmental funds to arrive at net assets – governmental activities $ 187,839,443 B. 1. Capital outlay $ 42,291,596 Depreciation expense (6,737,514) $35,554,082 Continued The governmentalfund balance sheet includes a reconciliationbetween fund balance - total governmentalfunds and net assets – governmentalactivities as reported in the government-widestatement 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 $187,839,443 difference are as follows: The governmentfund 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-widestatement 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 $35,554,082 difference are as follows: Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets -38- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. B. 2. Principal repayments: General obligation debt $ 13,785,000 SSD#5 Bond refunded 255,000 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activitie $ 14,040,000 3. Compensated absences $ (1,661,362) Amortization income 333,174 Pension contributions (1,806,529) $(3,134,717) 4. 2005 Bond Series $ (29,270,000) Bonds premium liability (2,062,395) $(31,332,395) Net adjustment to decrease net changes in fund balances – total governmentalfunds to arrive at changes in net assets of governmental activities Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities - Continued RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS – Continued Another element of that reconciliation states that "The repayment of the principal of long-term debt consumes the current financial resources of governmentalfunds. These transactions, however, have no effect on net assets." The details of this $14,040,000 difference are as follows: Another element of that reconciliation states that "Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($3,134,717) difference are as follows: Another elementof that reconciliationstates that "Issuance of 2005 Bonds provides current financial resources to governmentalfunds, whilethe repayment of the principal of long-termdebt consumesthe current financial resources of governmentalfunds." The details of this ($31,332,395) differenceare as follows: Net adjustment to decrease net changes in fund balances – total governmentalfunds to arrive at changes in net assets of governmental activities -39- 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. 2. Public budget hearings are conducted. Taxpayer comments are received and noted. 3. The budget is legally enacted through passage of a resolution. 4. 5. Blended Component Unit The following City and Township funds do not have legally adopted budgets: Special Revenue Library, Neighborhood Improvement, HOME, Community Development Loan, Employee Pension Contribution Budgets are legally adopted on a basis consistent with GAAP except that (1) property taxes are budgetedas revenuein the year they are levied,(2) debt service payments are budgetedupon 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. The Township prepares its annual appropriation ordinance, which is synonymous with its budget, using the modifiedaccrual basis of accounting. The appropriation ordinancewas adopted on June 28, 2004. 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 City Manager submits to the City Council a proposed operating budget for the fiscal year commencingthe following March 1. The operating budget includes proposed expenditures and the means of financing them. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. The budget was not amended during the 2005/06 fiscal year. -40- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued A. Budgetary Information - Continued Capital Projects General Fund Revenues GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 81,977,249 Increase (decrease) due to budgeting property taxes as revenue in the year of levy (57,583) Budgetary Basis Revenue $ 81,919,666 Expenditures GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances $ 84,011,871 Increase (decrease) due to Encumbrances - March 1, 2005 (447,032) Encumbrances - February 28, 2006 62,643 Budgetary Basis Expenditure $ 83,627,482 Adjustments necessary to convert City revenues and expenditures for the year ended February 28, 2006 on the GAAP basis to the budgetary basis are presented below: The level of control (level at which expenditures may not exceed budget) is the fund. All unencumberedannual appropriations lapse at the fiscal year-end. Encumbrance accounting, under which purchase orders, contracts, and other commitmentsfor the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employedas an extension of formal budgetary integration in the General Fund. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities under GAAP. Capital Improvements, Central Business Tax Increment District, Washington National Tax Increment District, Special Assessment -41- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued B. DEFICIT FUND EQUITY NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities B. Pooling of Cash and Investments It is the policy of the City to invest public funds in a manner whereby its investmentobjectivesare 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 investmentportfolio to meey daily cash flow needs so as to avoid needingto 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 benefitsto plan participants and beneficiaries. All investmentsare governedand authorized by the respectiveFire 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 respectivefund's assets. The pension funds invest to conform to all state and local statutes governingpension funds. Additional detail is available in each pension fund's investment policies. Except for cash and investments in certain restricted and special accounts, the City pools the cash of various funds to maximizeinterest earnings. Interest incomeis allocated to the various funds based upon their respective participation. The Insurance Fund, an internal service fund, had a net assets deficit of $3,522,374 as of February 28, 2006. The City plans to use current resources and possible debt proceeds to pay for future liabilities. Illinoisstatutes and the City's investmentpolicies 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 agreement 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. -42- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments Equities $ - - 2,203,929 - - - - - - $ 2,203,929 Equities $ - $ - Total Township Investment $ 476,867 $ 476,867 $ - Illinois Funds $ 476,867 Investment Type Fair Value Less Than 1 Year 1 - 10 More Years Federal Farm Credit Bank 984,486 11,387,049 $ 21,349,654 Fidelity Money Market JP Morgan Monet Market First Bank Money Market Vanguard Money Market $ 2,347,263 231,342 6,547,447 774,428 $ 101,295,376 IMET Money Market Less Than 1 Year Governmental and Enterprise Total Governmental and Enterprise Investment Fund Investment Maturities (In Years) $ 78,662,268 $ 20,429,179 $ - - 2,333,969 1,906,841 $ 21,349,654 21,523,800 - 13,002,599 16,396,844 3,983,018 9,998,875 1,000,000 221,990 - 984,486 17,396,844 221,990 $ 21,349,654 21,523,800 4,537,898 2,806,668 9,472,562 23,001,474 Fannie Mae Corporate Notes Money Market / Liquid Assets Illinois Funds Mutual Funds U.S. Treasuries Federal Home Loan Mortgage Corp Federal Home Loan Bank 1 - 10 More YearsInvestment Type Fair Value - 899,827 5,489,544 As of February 28, 2006, the City has the following investments and maturities. Fifth Third Money Market 62,125 $ 476,867 Investment Maturities (In Years) $ - Total Money Market Township -43- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued Equities $ - 29,746,960 - - - - - - 6,141,193 $ 35,888,153 6,809,140 Federal Home Loan Mortgage Corp 5,340,782 6,809,140 - - 5,340,782 Credit Risk.State law limits investmentsin commercialpaper, corporate bonds, and mutual bonds funds to the top two ratings issued by nationally recognizedstatistical rating organizations. The City's investmentpolicy does not impose further limits on investment choices. As of June 30, 2005, 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 conveniencefund collateralizesall of its deposits 110%. The City's investmentin 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. 4,540,013 - Ginnie Mae Fannie Mae $ 15,136,395 JP Morgan Monet Market 4,355,186 Schwab Money Market 2,909 Oak Brook Bank Money Market 8,463,135 Bank One Trust Money Market $ 312,380 Smith Barney Money Market 2,002,785 Total Fire and Police Investment $ 94,796,305 $ 16,121,987 $ 42,786,165 Common Stock 6,141,193 - - Federal Home Loan Bank 3,750,387 - 3,750,387 Federal Farm Credit Bank 74,282 - 74,282 U.S. Treasuries 17,408,983 985,592 16,423,391 Mutual Funds 35,595,130 - 5,848,170 Money Market / Liquid Assets $ 15,136,395 $ 15,136,395 $ - Investment Maturities (In Years) Interest Rate Risk.The City's investmentpolicy does not limit investmentmaturities as a means of managingits 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. 4,540,013 1 - 10 More YearsInvestment Type Fair Value Less Than 1 Year Fire and Police Pension -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Types of Investments - continued D. Deposits City Township Fiduciary E. Reconciliation of Unrestricted and Restricted Cash and Investments Deposits consist of deposits in interest-bearing and noninterest-bearing checking accounts. At February 28, 2006, the carrying amount of the City's deposits, including cash on hand of $42,708, was $9,234,040. The financial institutions' balances totaled $12,074,099. 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 investmentor 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. The total of unrestricted cash and investments and restricted cash and investments from the Statement of Net Assets and for the fiduciary funds is reconciledto the precedingdeposit and investmentdisclosures(Notes 4C and Notes 4D) as follows: At March 31, 2005, the carrying amount of the Township's deposits was $244,316. The financial institutions' balances totaled $248,639. Deposits consist of deposits in interest-bearing and noninterest-bearing accounts. At February 28, 2006, the carrying amount of the Pension's deposits was $693,717 and $21,073 for Agency. The financial institutions' balances totaled $702,794 and $21,073, respectively. Concentration of Credit Risk.It is the policy of the City to diversifyits investmentportfolio.Investmentsshall be diversifiedto eliminatethe risk of loss resulting in overconcentrationin a security, maturity, issuer, or class of securities. -45- 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 $ 46,104,946 Unrestricted investments 40,247,346 Restricted cash and equivalents and investments 24,898,307 Total Cash and Investments – Primary Government 111,250,599 Fiduciary funds cash and equivalents 15,851,185 Fiduciary funds investments 79,659,910 Total Cash and Investments $ 206,761,694 Carrying amount of deposits – from Note 4 D $ 10,193,146 Investments – from Note 4 C 196,568,548 Total $ 206,761,694 -46- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 5. RECEIVABLES A. Summary of Receivables Washington National Nonmajor Nonmajor General TIF Enterprise and Other Fund District Water Sewer Fund Funds Total Receivables: Property taxes $ 14,511,052 $ - $ - $ - $ - $ 25,682,144 $ 40,193,196 Accounts - - 1,917,384 2,633,531 - 95,220 4,646,135 Notes - - - - - 6,155,871 6,155,871 Special assessments - - - - - 769,274 769,274 Accrued interest 66,343 - - 64,901 25,533 372,546 529,323 Other 1,628,327 - 20,487 - 11,686 219,382 1,879,882 Gross receivables 16,205,722 - 1,937,871 2,698,432 37,219 33,294,437 54,173,681 Less: allowance for uncollectibles 284,530 - - - - 503,571 788,101 Net total receivables $ 15,921,192 $ - $ 1,937,871 $ 2,698,432 $ 37,219 $ 32,790,866 53,385,580 Less Fiduciary Fund Accrued Interest Included in Nonmajor and Other Funds (279,071) Net total receivables - Statement of Net Assets $ 53,106,509 B. Notes Receivable – Special Revenue Funds Beginning Loans Loan End of of Year Made Repayments Year $ 5,395,129 $ 1,086,641 $ 349,599 $ 6,132,171 Rates Interest 0% - 8% 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: The City makes loans to City residents for the rehabilitation of single-family and multi-family housing. Initial funding for these loans was from Community Development Block Grant (CDBG) and Housing and Urban Development (HUD) Funds. Two types of loans are made: (1) title transfer loans which are due in full when the housing unit is sold, and (2) amortizing loans which are due in monthly installments over varying lengths of time. Repayments of principal and any interest earned on these receivables, which are recorded in the respective Special Revenue funds, are used to make additional rehabilitation loans. An allowance of $90,000 exists in the Special Revenue funds due to doubtful accounts. Loan activity for the current year is summarized as follows: -47- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. CAPITAL ASSETS A. Capital Asset Activity Capital asset activity for the year ended February 28, 2006 was as follows: Governmental activities: Capital assets, not being depreciated: Land Right of way Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Office equipment and furniture Machinery and equipment Infrastructure Library collections Capitalized leases Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Office equipment and furniture Machinery and equipment Infrastructure Library collections Capitalized leases Total accumulated depreciation Total capital net assets being depreciated, net Governmental activities capital assets, net End of Year 18,695,896 6,556,620$ 66,910,458 41,657,942 20,939,965 9,534,769 78,509,383 664,069 10,192,310 85,894,840 23,434,757 205,735,336 8,620,845 44,116,889 13,306,814 5,070,621 95,213,995 664,069 6,457$ 177,431,799$ 110,521,341 2,746,041 6,457 - 37,590 526,498 337,382 1,094,727 749,844 526,498 2,752,498 1,094,727 756,301 - 37,590 - 337,382 -$ - - DeletionsAdditions 36,478,431$ 1,451,671 - 8,126,461 4,014,962 1,769,587 1,265,709 1,509,604 2,129,890 7,088,442 300,719 - 12,141,423 89,833,575 106,512,836 140,959,825$ -$ 89,755 32,373,714 32,463,469 1,968,868 - 2,783,394 12,547,054 41,986,999 7,206,764 1,190,567 1,190,567 196,346,411 22,002,552 4,899,639 10,629,496 18,912,872 78,806,398 9,929,181 Balance March 1, 2005 As Restated 76,877,897 18,606,141 9,284,228 34,446,989 6,556,620$ -48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Deletions Business-type activities: Capital assets, not being depreciated: Land -$ Construction in progress 13,000,678 Total capital assets, not being depreciated 13,000,678 Capital assets, being depreciated: Land improvements - Buildings and improvements - Leasehold improvements - Plant 224,624 Transmission and distribution system 117,253 Sewer system and underground lines - Equipment 36,671 Parking meters - Total capital assets being depreciated 378,548 Less accumulated depreciation for: Land improvements - Buildings and improvements - Leasehold improvements - Plant 87,670 Transmission and distribution system 11,358 Sewer system and underground lines - Equipment 36,669 Parking meters - Total accumulated depreciation 135,697 Total capital net assets being depreciated, net 242,851 Business-type activities capital assets, ne 13,243,529$ Beginning of Year Additions -$ 11,377,454 11,377,454 End of Year 2,082,633 2,006,010 8,956,371 - 38,413,317 1,967,905 448,851 280,069,956 620,365 4,157,637 275,543 292,736,422 448,851 - 13,045,014 - 302,752 - - 188,719,150 3,386,672 31,428,772 29,586,234 24,229,620 23,200,279 19,902,342 3,297,937$ 21,577,055 18,279,118 3,297,937$ 31,428,772 302,752 3,386,672 26,118,377 31,444,243 197,675,521 1,931,234 253,567 8,711,431 3,655,417 19,388,971 13,262 703,501 616,035 1,350,386 2,543,715 151,502 80,567 720,019 26,663 4,855,264 8,189,750 266,829 9,327,262 4,260,094 21,932,686 700,932 4,877,656 1,465,219 302,206 43,132,884 249,603,538 271,180,593$ 241,656,639 264,856,918$ 19,567,204$ -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General management and support $ 2,714,498 Public safety 455,591 Public works 2,246,430 Recreation and cultural opportunities 2,709,942 Total depreciation expense – governmental activities 8,126,461 Business – type activities: Water $ 1,345,848 Sewer 2,665,388 Maple Avenue Garage 685,311 Motor Vehicle Parking 158,717 Total depreciation expense – business – type activities 4,855,264 B. Construction Commitments $ 1,091,123 334,848 17,633,335 $ 19,059,306 The value of construction contracts signed, where the work has not yet been performed at February 28, 2006, is as follows: Capital Improvement Fund Water Fund Sewer Fund Total Construction Commitments -50- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS A. Interfund Accounts At February 28, 2006 interfund receivables and payables consist of the following: Governmental Funds General Fund Emer enc Tele hone S ste Economic Develo men EVNORSK Motor Fuel Tax Fleet Servic ei hborhood Im rovemen Communit Develo ment Block Gran S ecial Assessment Washin ton National Tax Increment District Central Business Tax Increment District General Obli ation Debt Central Business Tax Increment District Ca ital Im rovements Ma le Avenue Gara e Motor Vehicle Parkin S ste Water Sewer Firefi hters Pension Police Pensio Total General Fund Washington National Tax Increment District General Economic Development Howard Ridge Tax Increment District Total Washington National Tax Increment District Continued 4 - 7,063 533,054 - 398 - 367,068 - - 20,000 - 142 Other FundsFunds 984,612 5,000 Due fro The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. - Due to Other Funds 222 - 4,470 - 1,787,137 240 - - 4 73,972 - - 1,480,988 - 12,710 - - 11,906 2,910,032 - 4 557,473 1,897 $ - - $ 1,852 - 5,347 1,716 - - 28,863 -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continue A. Interfund Accounts - Continue Nonma or Governmental Funds Motor Fuel Tax General Communit Develo ment Loa Total Motor Fuel Tax Economic Develo men General Washin ton National Tax Increment District Howard Rid e Tax Increment District Total Economic Develo men Emer enc Tele hone S ste General ei hborhood Im rovemen General Communit Develo ment Block Gran General Ca ital Im rovements 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 Washin ton National Tax Increment District Employer Pension Contribution Firefighters Pension Police Pension Total Employer Pension Contribution Town General Assistance General Assistance Town General Obligation Debt General Central Business Tax Increment District General Fleet Total Central Business Tax Increment District Washington National Tax Increment District Special Service District No. 4 Continued 20,000 - 1,787,137 - - 51,650 73,972 - Funds Other Funds -$ Due to 367,068 - - 41,586 - 1,897 - 1,852 3,613 109 109 Due fro 41,586 - 75,000 14,788 - - - - 20,000 $ 367,068 - Other Funds 109 - 1,716 75,000 - - 142 1,227,773 14,788 - 109 75,142 75,000 - 20,000 970,049 2,197,822 125,622 - 200,786 - - 200,786 -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continue A. Interfund Accounts - Continue Nonmajor Governmental Funds - Continued Howard Ridge Tax Increment District Economic Development Washington National Tax Increment District Central Business Tax Increment District Total Howard Ridge Tax Increment District Central Business Tax Increment District General Howard Ridge Tax Increment District Total Central Business Tax Increment District Capital Improvements Maple Avenue Garage Community Development Block Grant General Total Capital Improvements Special Assessment General Total Nonmajor Governmental Funds Total Governmental Funds Enterprise Funds Water Sewer General Total Water Sewer General Water Fleet Total Sewer Nonmajor Enterprise Funds Maple Avenue Garage General Motor Vehicle Parking System Capital Improvements Total Maple Avenue Garage Continued 60,000 277 2,370 - - - - Due to Other Funds Due from 41,586$ -$ Other Funds 5,347 - 398 - - 3,120,575 6,030,611 2,162,238 3,650,289 - Funds 2,370 49,303 11,906 - 11,906 70 277 - - 222 - 79,258 - - 4,470 60,000 60,070 240 2,610 398 230,000 - 230,277 - 28,863 28,863 - 277 14,788 - - -53- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continue A. Interfund Accounts - Continue Nonmajor Enterprise Funds - Continued Motor Vehicle Parking System General Maple Avenue Garage Total Motor Vehicle Parking System Total Nonmajor Enterprise Funds Total Enterprise Funds Internal Service Funds Fleet Services General EVNORSKO Sewer Central Business Tax Increment District Total Fleet Services Total Internal Service Funds Trust and Agency Funds Firefi hters Pension General Employer Pension Contribution Total Firefighters Pension Police Pension General Employer Pension Contribution Total Police Pension Total Trust and Agency Funds Total All Funds Less amounts eliminated during GASB 34 implementation Less total due from other Agency (EVNORSKO) Less total Firefighters and Police Pension Total Primary Government 985,124 12,780 -$ - - 72,253 Due to Other FundsFunds Due from Other Funds 70 - - - 512 51,650 - - - 1,227,773 557,473 1,785,246 - - - 1,503,103 (3,288,349) (4,488) 533,054 970,049 272,318 984,612 7,288,053 (3,799,639) - 7,292,541 3,288,349 (3,799,639) (3,288,349) - 281,650 230,000 281,650 985,124 - 12,710$ 60,070 13,178 200,065$ 200,065$ -54- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued B. Interfund Transfers At February 28, 2006 transfers in / out consist of the following: Governmental Funds General Fund Motor Fuel Tax Ma or's S ecial Housin Central Business Tax Increment District Washin ton National Tax Increment District Howard Hartre Tax Increment District Southwest Tax Increment District Ca ital Im rovements S ecial Assessment General Obli ation Debt Flee Water Ma le Avenue Gara e Total General Fund Washington National Tax Increment District Howard Ridge Tax Increment District Total Washington National Tax Increment District Nonmajor Governmental Funds Motor Fuel Tax General Economic Develo men Ma le Avenue Gara e Howard Rid e Tax Increment District Total Economic Develo men Ma or's S ecial Housin General Community Development Loan Community Development Block Grant Continued 79,551 31,800 - 4,966,843 772,500 5,347 - 265,200 31,800 Transfers 1,258,250 Funds 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. - 31,800 - - 772,500$ -$ 137,900 - - - 884,043 - Transfers 128,800 19,000 - 2,693,600 21,200 OutIn 813,500 125,750 300,000 - 5,347 - 37,521 - 37,521 - - 650,000 650,000 - - -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Nonma or Governmental Funds - Continued Communit Develo ment Block Gran Community Development Loan 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 Fleet Sewer Maple Avenue Garage Water Total Central Business Tax Increment District Southwest Tax Increment District General Fund Howard Hartrey Tax Increment District General Fund Washington National Tax Increment District General Fund Central Business Tax Increment District Total Washington National Tax Increment District Howard Ridge Tax Increment District Economic Development Washington National Tax Increment District Total Howard Ridge Tax Increment District Capital Improvements Water Fleet General Total Capital Improvement Continued 123,171 - 137,900 - 884,043 - - 21,200 128,800 845,315 - 37,521 - 42,868 548,300 548,300 3,405,000 - - 3,300,000 105,000 - 123,171 - 5,347 268,449 - - 137,900 845,315 426,250 - 125,750 - 79,551$ Transfer In Out Transfer -$ - Funds - - 845,315 4,500,000 - 7,449,059 - - - 300,500 - 51,650 899,602 -56- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continue B. Interfund Transfers - Continued Nonma or Governmental Funds - Continued Special Assessment General General Obligation Debt Total Special Assessment Total Nonmajor Governmental Funds Total Governmental Funds Enterprise Funds Water General Capital Improvement Insurance Central Business Tax Increment District Total Water Sewer Central Business Tax Increment District Fleet Total Sewer Nonmajor Enterprise Funds Maple Avenue Garage General Central Business Tax Increment District Economic Development Total Maple Avenue Garage Total Nonmajor Enterprise Funds Total Enterprise Funds Continued 7,032,298 14,432,399 - 899,602 230,000 2,060,108 13,174,149 - 300,500 Out -$ 31,800$ 300,000 - 332,300 3,568,449 5,993,600 - 2,693,600 - 3,300,000 - - 899,602 230,000 650,000 3,300,000 268,449 - - - 4,500,000 - 5,450,000 - 9,918,051 6,223,600 5,450,000 - Funds In Transfer Transfer -57- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continue B. Interfund Transfers - Continued Internal Service Funds Fleet Services General Capital Improvement Central Business Tax Increment District Sewer Total Fleet Services Insurance Water Total Internal Service Funds Total All Funds Less amounts eliminated during GASB 34 implementation Total Primary Government 230,000 - 3,300,000 - 3,705,650 - Out Transfer Transfer 405,650 - 105,000 (16,378,248) 20,655,999 20,655,999 4,277,751$ 4,277,751$ (16,378,248) - 51,650 - Funds 19,000$ -$ In -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 8. OPERATING LEASES Minimum annual lease payments are as follow Fiscal year ending 200 $ 167,584 Fiscal year ending 200 152,939 Fiscal year ending 200 105,236 Fiscal year ending 201 33,649 Fiscal year ending 2011 2,541 $ 461,949 The City leases 9 copiers for the Library from GE Capital, with a 60-month term starting February 2004 (monthly payment of $1,789), 4 copiers for the Police Department from GE Capital with a 60-month term starting February 2004 (monthly payment of $1,930 and $247), 1 copier for the Hearings Division from DocumentVisionTechnologieswith a 60-monthterm starting June 2003 (monthlypaymentof $190), 1 copier for the Budget Department from DocumentVision Technologieswith a 60-month term starting April 2003 (monthly payment of $490), 1 copier for the Water Department from DocumentVisionTechnologieswith a 36-monthterm starting December 2004 (monthly payment of $305), 3 copiers for Fleet Services from GE Capital with a 36- month term starting March 2004 (monthlypayment of $600), 1 copier for the Chandler Center from GE Capital with a 60-month term starting September 2004 (monthlypayment of $302), and 2 copiers for Parks/Foresty and Recreation with a 60-month term starting February 2004 (monthly payment of $1,759). During the 2006 fiscal year, the lease of 4 copiers for the Police and Recreation Departments, with monthly payments of $1,757, was terminatedand replaced with a new contract from DocumentVisionTechnologiesfor a 60-month term starting April 2005 (monthly payment $2,541), which added 2 copiers for the fourth floor and fir fl r f h E n n i i n r Payments 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 monthl a ment of 410 The City has various operating leases covering the rental of several digital office copiers from 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. -59- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT A. Chan es in Lon -Term Debt Retired or Final Balance Issued Transferred Balance Interest Maturity March 1, or to Debt February 28, Due Within Rate Date 2005 Adjusted Service Funds 2006 One Year Governmental activities General obligation bonds/corporate purpose bonds Series 1996 4.20%-5.70% 12/1/2016 $ 1,040,000 $ - $ 1,040,000 $ - $ - Series 1997 5.00%-5.50% 12/1/2017 16,660,000 - 2,260,000 14,400,000 2,430,000 Series 1998 4.80%-4.875% 12/1/2018 8,300,000 - 6,950,000 1,350,000 420,000 Series 1999 4.25%-5.00% 12/1/2019 34,060,000 - 2,165,000 31,895,000 3,060,000 Series 2000 Variable Rate 12/1/2021 31,800,000 - 4,000,000 27,800,000 27,800,000 Series 2002A Variable Rate 12/1/2018 29,500,000 - - 29,500,000 29,500,000 Series 2002B Variable Rate 12/1/2007 5,500,000 - - 5,500,000 5,500,000 Series 2002C 5.00%-5.80% 1/1/2022 13,955,000 - 1,290,000 12,665,000 735,000 Series 2003 2.00%-5.00% 1/1/2010 10,285,000 - 2,540,000 7,745,000 2,530,000 Series 2003B 2.00%-5.25% 1/1/2023 11,070,000 - 80,000 10,990,000 80,000 Series 2004 2.00%-5.00% 12/1/2023 13,355,000 - 130,000 13,225,000 145,000 Series 2004B 2.00%-5.25% 12/1/2017 11,585,000 - - 11,585,000 - Series 2005 3.25%-5.00% 12/1/2025 - 29,270,000 50,000 29,220,000 800,000 Total general obligation bonds/corporate purpose bonds 187,110,000 29,270,000 20,505,000 195,875,000 73,000,000 Less: Business-type activity bonds (43,655,000) - (6,270,000) (37,385,000) (15,735,000) Total governmental activity bonds 143,455,000 29,270,000 14,235,000 158,490,000 57,265,000 Special Service District #5 Series 2002C rfndg 1996 5.00% - 5.80% 1/1/2016 3,445,000 - 110,000 3,335,000 265,000 Bonds 1995 4.30% - 5.90% 12/1/2015 145,000 - 145,000 - - Total special service district # 5 bonds 3,590,000 - 255,000 3,335,000 265,000 Bonds premium liability 2,946,732 2,062,395 333,174 4,675,953 - Pension contributions 11,382,829 1,806,529 - 13,189,358 - Compensated absences payable - City 7,039,870 1,661,362 111,108 8,590,124 1,560,221 Claims payable 12,696,784 741,028 8,903,698 4,534,114 862,114 Governmental activity Long-term liabilities $181,111,215 $35,541,314 $23,837,980 $192,814,549 $59,952,335 -60- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued A. Chan es in Lon -Term Debt - Continued Retire or Transferred Final Balance Issued to Debt Balance Interest Maturity March 1, or Service February 28, Due Within Rate Date 2005 Adjusted Funds 2006 One Year Business-type Activities General obligation bonds/corporate purpose bonds Sewer $22,495,000 $- $1,925,000 $20,570,000 $ 2,050,000 Maple Avenue Garage 16,900,000 - 3,800,000 13,100,000 13,100,000 Parking System 4,260,000 - 545,000 3,715,000 585,000 Total general obligation bonds/corporate purpose bonds 43,655,000 - 6,270,000 37,385,000 15,735,000 Unamortized bond expenses and discount (51,362) - (22,608) (28,754) (21,399) Water Fund revenue bonds Series 1997 4.00-4.30%1/1/2006 410,000 - 410,000 - - Series 1999 4.125-4.375%1/1/2014 2,325,000 - 220,000 2,105,000 230,000 Series 2002 2.00-3.75%1/1/2012 1,840,000 - 235,000 1,605,000 240,000 Total Water Fund revenue bonds 4,575,000 - 865,000 3,710,000 470,000 Sewer Fund – Illinois Various Environmental Protection Through Agency loans 2.535-3.59%11/26/2021 102,200,011 5,175,923 5,975,259 101,400,675 6,574,741 Compensated absences payable - City 454,238 121,150 - 575,388 575,388 Business-type activity long-term liabilities $ 150,832,887 $ 5,297,073 $ 13,087,651 $ 143,042,309 $ 23,333,730 -61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable In July 28, 2005, the City issued Series 2005 $29,270,000 in General Obligation bonds at a net interest cost of 3.893986%. The proceedsare being used to partially refund$6,350,000 of the 1998 bonds, pay a portion of the costs of the Capital Improvement Program, finish constructing the Sherman Garage, and pay for the additional Special Assessment Alley program. The City completed the partial advance refunding of the 1998 bonds to reduce its total debt servicepaymentsover the next thirteen yearsby $296,958 and to obtain an economicgain (differencebetweenthe present values of the old and new debt service payments) of $227,965. The City issued general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obli ation bonds have been issued for both overnmental and business-t e activitie General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 20-ear serial bonds with e ual amounts of rinci al maturin each ea 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 roceeds are bein used to artiall refund $11 085 000 of the 1997 bonds 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 December 1, 2001 through November 30, 2005. 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 agreementwith 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 December 1, 2002 through In May, 2003, the City issued Series 2003B $11,485,000 in General Obligation bonds at a net interest cost of 4.4900825%. The roceeds are bein used to artiall finance the Cit 's Lon -Ran e Ca ital Im rovement Pro ra 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 ImprovementProgram and Special Assessment Alley program. 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 accompanyingfinancial 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 escrowaccountand those monies were used to fullypay off 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 (differencebetween the present values of the old and new debt service payments) of $1,065,550. -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued Annual debt service requirements to maturity for general obligation bonds are as follow Year Ending February 28 Principal Interest Principal Interest 2007 $ 57,265,000 $ 16,321,489 $ 15,735,000 $ 2,345,968 2008 7,495,000 4,508,209 2,785,000 1,282,325 2009 6,360,000 4,223,199 2,980,000 1,109,885 2010 6,510,000 3,995,735 3,170,000 925,328 2011 6,650,000 3,791,437 2,735,000 728,974 2012-2016 38,265,000 14,504,892 8,940,000 1,403,085 2017-2021 25,220,000 6,185,456 1,040,000 97,944 2022-2026 10,725,000 1,227,713 - - Total $ 158,490,000 $ 54,758,130 $ 37,385,000 $ 7,893,509 C. S ecial Service District Bonds Pa able Annual debt service requirements to maturity for special assessment bonds are as follow Year Ending February 28 Principal Interest 2007 $ 265,000 $ 170,563 2008 285,000 157,313 2009 295,000 143,063 2010 305,000 128,313 2011 325,000 113,063 2012-2016 1,860,000 301,823 Total $ 3,335,000 $ 1,014,138 Governmental Activities Business-type Activities The City also issued debt in the Special Service District No. 5 Fund to provide funds for the principal and interest a ments on unlimited ad valorem tax bonds issued for this s ecial taxin distric Governmental Activities -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued D. Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follow Year Ending February 28 Principal Interest 2007 $ 470,000 $ 145,088 2008 485,000 128,713 2009 510,000 110,913 2010 525,000 91,556 2011 550,000 71,269 2012-2016 1,170,000 88,717 Total $ 3,710,000 $ 636,256 E. Notes Payable - Sewer IEPA Loans Notes payable – Sewer IEPA debt service requirements to maturity are as follow Year Ending February 28 Principal Interest 2007 $ 6,574,741 $ 2,807,623 2008 6,768,449 2,613,831 2009 6,967,954 2,414,239 2010 7,173,432 2,208,672 2011 7,385,064 1,996,948 2012-2016 35,798,956 6,737,629 2017-2021 23,031,295 2,488,149 2022-2026 7,700,784 403,985 Total $ 101,400,675 $ 21,671,076 Business-type Activities As of February 28, 2006, the City currently has 24 outstanding loans from the IEPA. The City will repay the loans solely from revenuesderived 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 accruedduring construction. Repayments begin not later than six months after completion of construction. 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. Business-type Activities -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued F. Prior Years' General Obli ation Bond Defeasances Ori inal Outstandin GO Serie Amount Defease Defeased Amount 1996 $ 9,765,000 $ 9,765,000 1997 11,085,000 ######### 1998 6,350,000 6,350,000 Series 1997 $ 14,400,000 1998 1,350,000 G. Prior Years' S ecial Service District #5 Bond Defeasances Ori inal Outstandin Amount Defease Defeased Amount $ 1,990,000 $ 1,990,000 1,620,000 1,260,000 There are no outstanding balances for Special Service District #5 bonds 1995 and 1996, not defeasedat February 28, 2006. 1996 Special Service District #5 1995 In 2003, the City defeased a portion of Special Service District #5 Series 1995 and 1996 bonds by placing a portion of the roceeds of Series 2002C in an irrevocable escrow accoun In 1999, the City defeased a portion of Series 1994, Series 1995, and Series 1996 Corporate Purpose bonds, by placing a portion of the proceedsof the Series 1999 Bonds in an irrevocabletrust to provide for the advancerefunding of the callable ortion of the bonds. The trust account assets and the liabilities for the defeased bonds are not included in the City’s financial statements. At Februar 28 2006 the followin remainin outstandin balances are considered defease The outstanding balances of Series 1997 and 1998, not defeased at February 28, 2006, are recorded as a liability in the Cit ’s financial statements. Those balances are as follow 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 accoun 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 accoun -65- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10 FUND EQUITY A. Restrictions of Retained Earnin s - Water Fund Surplus Revenue Account - All revenuesremaining after all other credits in the Water Fund have been made shall be credited to this account and be used for: making up any deficiencynecessary 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 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 monthlyan amount at least equal to the sum of one-fifthof the interest becoming due on the next interest payment - 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 replacementsfor improvementor extension of the system. The funds may be used at any time to pay principal of, or interest upon, any outstanding bonds payable whenever there are no other funds available. If the money on deposit is greater than $400,000, the excess can be transferred to any other account within the Water Fund. All proceeds received from the disposition of any property shall be credited to this account. Bond 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. 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: -66- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. FUND EQUITY - Continued B. Restrictions of Fund Equity City General Fund Reserved for encumbrances $ 62,643 Reserved for Arts Council 34,265 Reserved for private elm trees 55,384 Reserved for Butterfield sculpture 31,833 Reserved for scholarship contributions 34,653 Reserved for public library acquisitions 233,797 Reserved for recreation group activities 192,058 Reserved for IMRF 2,590,000 Reserved for compensated absences 2,576,360 Other reserves 216,427 Total General Fund 6,027,420 Special Revenue Funds Reserved for notes receivable 6,132,171 Debt Service Funds Reserved for debt service 27,780,874 Capital Project Funds Reserved for notes receivable 23,700 Total Reserved Fund Equity - Governmental Funds $39,964,165 Restrictions are used to segregate portions of fund equity which are either legally restricted for specific purposes or not "available spendable resources." The following restrictions are reported: -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. FUND EQUITY - Continued B. Restrictions of Fund Equity - Continued Fiduciary Funds Firefighters' Pension Fund Restriction for employee pension benefits $ 40,653,426 Police Pension Fund Restriction for employee pension benefits 58,400,854 Total Fiduciary Funds $99,054,280 C. Unrestricted Fund Equity - Designated The City has designated certain amounts of unrestricted fund equity for the following purposes: General Fun Capital projects to be financed in a future perio $ 320,196 Special Revenue Fund Specific Capital Project Motor Fuel Tax 2,306,613 Librar 2,490,977 Total Special Revenue Fund 4,797,590 Capital Projects Fund Specific capital project Capital Improvement 13,728,067 Central Business Tax Increment Distric 4,217,593 Special Assessment 1,809,885 Washington National Tax Increment Distric 7,143,095 Total Capital Projects Fund 26,898,640 Unrestricted Fund Equity - Designate $ 32,016,426 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 B. Water Fund C. Special Service District No. 4 The City usually adopts several resolutions abating portions of the property tax debt service levies. The amount of property taxes abated is derived from principal and interest payments by private assessments on street paving projects; additional sewer service fees related to the citywide sewer improvementproject; tax incrementrevenues in the Central Business, Southwest, WashingtonNational, and Howard Hartrey Tax IncrementDistricts; revenues from the Motor Vehicle Parking System Fund associated with the Church Street Self-Park garage; and General Obligation Debt Service Fund interest income. On January 28, 1997, the City executed a long-termwater 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 renewableat ten-year intervals thereafter. Under the terms of the contract, Evanston is to supply Skokie sufficient potable Lake Michigan water to satisfy the maximum24- 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’smaximum 24-hour demands for Lake Michigan water for resale to the Commission’s customers. On January 13, 1997, the City Council adopted Ordinance No. 116-0-96 which extended the life of Special Service District No. 4 for a period of ten years from August 13, 1997. Special Service District No. 4 comprises the central business district of the City. The special district was establishedfor the purpose of providingfunds for special maintenance and repair and for promotion and advertisement. The Ordinance states that the annual property tax levyfor the District shall be the lesser of an annual rate of .30% of the assessed value as equalizedor $250,000. The annual property tax levy for 2005 was $250,000. The ordinancealso authorized the City to enter into an agreementwith EVMARK, INC., an Illinoisnot-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 changes in the balances of claims liabilities during the past two fiscal years are as follows: Workers’ General Compensation Liability Total March 1, 2004 $ 2,056,152 $ 26,109,499 $ 28,165,651 New claims and/or estimate revisions 1,136,548 (10,421,403) (9,284,855) Claims payments (498,416) (5,685,596) (6,184,012) February 28, 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 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 establishedon March 1, 1994 to administergeneralliability claims and workers' compensationprograms on a cost reimbursement basis. The fund accounts for the aforementionedliabilities of the City, but does not constitute a transfer of risk from the City. The City records estimated liabilities for workers' compensation and for general claims. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claim adjustment expenses. The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to the City's employees. The City maintains commercial all-risk property insurance to cover damage to City facilities and contents and other losses includingbusiness 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. -70- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 13. SUBSEQUENT EVENTS NOTE 14. CONTINGENCIES NOTE 15. JOINT VENTURES A. Northwestern University On January 28, 1985, the City adopted a Central Business Tax Increment City called the Downtown II RedevelopmentArea, which consisted of 26 acres of contiguous land located in the northwestern portion of the central business City of the City. The City comprisedeight blocks of land ownedby private parties, Northwestern University, and the City at the date of adoption. The redevelopmentplan was formulated in accordance with the Tax Increment City laws of the State of Illinois. The City issued Series 2006, $10,290,000 general obligationbonds in July 2006. The proceeds are being used to partially finance the City's long-range capital improvement program. The bonds bear interest at rates ranging from 3.85% to 5%, and are payable in annual principal and interest amounts through December, 2026. 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 believesthat 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 receivedor receivablefrom grantor agenciesare subject to audit and adjustmentby grantor agencies, principally the federal government.Any disallowedclaims, includingamounts already collected, may constitute a liability of the applicable funds. The amount, if any, of the expenditures which may be disallowedby the grantor cannot be determinedat this time although the City expects such amounts, if any, to be immaterial. In 1986, the City Council adopted a Statement of Understanding between the City and Northwestern University (Northwestern)concerningthe developmentof approximately22 acres of the DowntownII 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 B. Solid Waste Agency of Northern Cook County As of December 31, 2003, the decisionwas made to dissolve the organization. The remainingassets 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, 2005, so there are no financial statements to report. 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 promoteand 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. The authority to designate management, influence operations, and formulate budgets rests with the Board of Directors and Executive Committee. No one member has the ability to significantly influence operations; therefore, the Agency is not a component unit of any other governmental reporting entity. The Agency is a municipal joint action agency created as of May 2, 1988 under the provisions of the IntergovernmentCooperation 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 communitywho serves a two-year term. Each director has one vote. The Board of Directors determinesthe generalpolicies of the Agency. The Executive Committee of the Agency consists of seven persons elected by the Board of Directors. Each person is entitled to one vote. The Executive Committee may take action not specifically reserved to the Board of Directors by the Act, the Agency agreement, or the bylaws. On March 28, 1988, the Evanston City Council authorized agreementsprovidingfor the City's participation in the Solid Waste Agencyof Northern Cook County (Agency)and in the interim financingof that Agency. The Agency was planned and developedby the Northwest Municipal Conference,of which the City is a member. The agency is empowered to plan, finance, construct, and operate a solid waste disposal system. -72- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 15. JOINT VENTURES – Continued B. Solid Waste Agency of Northern Cook County - Continued Summary of Financial Position as of April 30, 2005: Current assets $ 6,896,680 Restricted assets 1,269,497 Property, plant, and equipment 14,504,530 Debt issuance costs, net 162,840 Total assets $22,833,547 Current liabilities $ 4,121,980 Long-term debt, net of unamortized discount 9,727,956 Invested in capital assets, net of related debt 4,176,574 Restricted for debt service, net of accrued interest 1,223,121 Unrestricted net assets 3,583,916 Total liabilities and fund equity $22,833,547 Summary of Revenues and Expenses for the Year Ended April 30, 2005: Total revenues $ 16,204,835 Total expenses (16,420,179) Net (loss)$(215,344) Complete financial statements for the agency can be obtained at 1616 East Golf Road, Des Plaines, IL 60016. 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 deliveriesto the Wheeling Transfer station for each year. The City does not control the Agency's fiscal managementor operations nor is the City legally responsible for any more than its share of the Agency's debt or operating deficits, if any. -73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 15. JOINT VENTURES – Continued C. Evanston Housing Corporation Statement of Financial Position as of December 31, 2005: Cash and cash equivalents $ 2,281,896 Mortgage loans receivable 834,869 Total assets 3,116,765 Payables and accrued expenses 52,765 Notes payable 3,064,000 Total liabilities 3,116,765 Net Assets $- The City agreed to jointly participate with various lending institutions in a not-for-profit housing mortgage corporation by approval of the City Council on May 22, 1989. The purpose of the corporation is to lend mortgage funds to qualified, income eligible, first-time homebuyers in the City of Evanston. The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2005 are summarized as follows: 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 governingauthority to influenceactions 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 investmentincomeearned on the funds not loaned to mortgagees. The financial institutions' funds are advanced under Non-RecourseCollateral 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. -74- 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, 2005: Total revenues $ 89,728 Total operating expenses (89,728) Excess of revenues over expense $ - NOTE 16. DEFERRED COMPENSATION PLAN Plan balance at February 28, 2006 $29,452,518 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. The City provides the Corporation with office space and staff support on a cost reimbursementbasis. Complete financial statements for the Corporation can be obtained in the City's CommunityDevelopmentDepartment from the Assistant Director, Housing Rehabilitation and Property Standards. The assets of the plan are held in Trust (ICMA RetirementCorporation Deferred CompensationPlan and Trust), with the City serving as trustee, for the exclusive benefit of the plan participants and their beneficiaries. The assets cannot be diverted to any other purpose. The City's beneficial ownership of plan assets held in the ICMA Retirement Trust is held for the further exclusive benefit of the plan participants and their beneficiaries. The City of Evanston offers its elected officials and employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is administered by the ICMA Retirement Corporation. The plan, available to all City employees,permits them to defer a portion of their current salary to all future years. The deferred compensation is not available to the participants until termination, retirement, death, or an unforeseeable emergency occurs. -75- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund A. Plan Description The City maintains two separate single-employerretirementplans establishedby state statute for the City’s police officers and firefighters. The City also participates in the Illinois Municipal Retirement Fund (IMRF), a statewi multiple-employerpublic 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 recognizesthe appropriate tax revenues for the City on behalf of the Pension Trust Funds and contributes those amounts into the Pension Trust Funds as the employer contribution. The City 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 pensionplan that acts as a commoninvestmentand administrativeagent for local governmentsand 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 websi at www.imrf.org/pubs/pubs_homepage.htm. 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. Employeesparticipating in IMRF are required to contribute 4.50% of their annual covered salary. The member rate is establishedby state statute. The City and Township are required to contribute at an actuarially determined rate. The City’s rate for calendar years 2005 and 2004 were 7.64% and 3.97%, respectively, of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. -76- 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 C. Annual Pension Cost The City’s total payroll for the calendar year ended December 31, 2005 was $55,621,021. Of this amount, $31,403,514 in payroll earnings were reported to and coveredby the IMRF system. The Township’s total payroll for the year ended December 31, 2004 was $325,805. Of this amount, $325,805 in payroll earnings were reported to and covered by the IMRF plan. For December31, 2005, the City’s annual pension cost of $2,399,228 was equal to the City’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% investmentrate 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-retirementbenefit increases of 3% annually. The actuarial value of IMRF assets was determinedusing techniquesthat smooth the effects of short-term volatility in the market value of investmentsover a five-year period. The assumptions used for the 2005 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 remainingamortization period at December 31, 2005 was 10 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 Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/05 $ 2,399,228 100% - 12/31/04 1,173,858 100% - 12/31/03 508,785 100% - Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/04 $ 3,877 100% - 12/31/03 3,767 100% - 12/31/02 4,302 100% - Three-Year Trend Information for IMRF - Township Three-Year Trend Information for IMRF - City For December31, 2004, the Township’s annual pension cost of $3,877 was equal to the Township’s requiredand actual contributions. The required contribution was determined as part of the December 31, 2002 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 investmentsover a five-year period. The assumptions used for the 2004 actuarial valuation were based on the 1999-2001 experience study. -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 Participation in the plans at February 28, 2006 was: Police Firefighters' Retirees, disabled participants, and beneficiaries of deceased retirees currently receiving benefits 146 114 Active plan members 159 107 Total 305 221 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% Any police officer or firefighter who has creditable service of 20 years or more, has reached age 50, and is no longerin the service, is entitledto a yearly pensionequal to one-halfof the salary attached to the rank held for one year immediatelyprior 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. The Police Pension Plan and Firefighters' Pension Plan are contributory, defined benefit public employee retirement plans administeredby the City and a Board of Trustees for each Fund. All sworn City police officers and firefightersare participants in the plans. The plans do not issue stand-alone financial reports and they are not included in the report of a public employeeretirement system or another entity. The City's payroll for police and firefighter employees covered by the plans for the year ended February 28, 2006 was $10,642,000 and $7,684,000, respectively. -79- 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 E. Summary of Significant Accounting Policies Basis of Accounting Method Used to Value Investments F. Contributions and Reserves A police officer or firefighterwho 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 immediatelyprior to retirementor separation in the case of a policeofficer and at the date of retirementor separation in the case of a firefighter. The amount of the benefit is a tabular percentage of such salary ranging from 15% for 10 years of service to 50% for 20 years of service. These benefit provisions and all other requirements are established by state statute. The Police and Firefighters' Pension Fund financial statements are prepared using the accrual basis of accounting. Plan membercontributions are recognizedin the period the contributions are due. Employercontributions to each plan are recognizedwhendue from the EmployerPensionContribution Fund. Benefitsand refunds are recognized when due and payable in accordance with the terms of each plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value. Employee contribution rates are established by statute at 9.91% of a police officer’s salary and 9.46% of a firefighter’ssalary. Accumulatedemployeecontributions are refundedif an employeeleaves coveredemployment 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 Police Firefighters' Annual required contribution $ 4,071,765 $ 3,317,158 Interest on net pension obligation 549,761 303,951 Adjustment to annual required contribution (464,219) (256,657) Annual pension cost 4,157,307 3,364,452 Contributions made (3,221,523) (2,493,707) Increase in net pension obligation 935,784 870,745 Net pension obligation at March 1, 2004 7,330,143 4,052,686 Net pension obligation at February 28, 2005 $ 8,265,927 $ 4,923,431 G. Concentration of Investments The Firefighters' Pension Trust Fund had no significant investments (other than U.S. Government and U.S. Government-guaranteedobligations) in any one organization that represented 5% or more of net assets available for benefits. The Police Pension Trust Fund had no significant investments(other than U.S. Governmentand U.S. Governmen guaranteed obligations) in any one organization that represented 5% or more of net assets available for benefits. 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, 2005) and are as follows: The difference between the total amount funded and the amount to be funded, as actuarially determined, is recorded as the net pension obligation in the general long-term debt schedule. The total pension liability calculated as the net pension liability dates forward from fiscal year 1987-88. For employer contributions, the City’s budget policy is to fund pension plans at the funding level recommended annually by the actuary. The General Fund is used to liquidate the net pension obligation. -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 Percentage of Net Pension Year Ended Cost (APC)APC Contributed Obligation Police 2/28/05 $ 4,157,307 73.87 % 8,265,927$ 2/29/04 4,361,218 107.87 7,330,143 2/28/03 3,595,566 99.02 6,847,380 Firefighters' 2/28/05 $ 3,364,452 80.67 % 4,923,431$ 2/29/04 3,091,174 106.37 4,052,686 2/28/03 2,733,813 100.63 3,869,516 The required supplementary information immediately follows the Notes to the Financial Statements. -82- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters' Pension Plans – Continued I. Pensions - Detailed Statement of Net Assets Firefighters' Police Total Pension Pension Pension Assets Cash and short-term investments 6,516,290$ 9,313,822$ 15,830,112$ Receivables Accrued interest 76,390 202,681 279,071 Due from other funds 1,503,103 1,785,246 3,288,349 Total Receivable 1,579,493 1,987,927 3,567,420 Investments, at fair value U.S. Government obligations 14,926,378 22,997,210 37,923,588 Common stock 6,141,193 - 6,141,193 Mutual funds 11,490,155 24,104,974 35,595,129 Total Investments 32,557,726 47,102,184 79,659,910 Total Assets 40,653,509 58,403,933 99,057,442 Liabilities Vouchers payable 83 3,079 3,162 Due to other funds - - - Total Liabilities 83 3,079 3,162 Net assets held in trust for pension benefits 40,653,426$ 58,400,854$ 99,054,280$ -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 3,513,682$ 4,417,058$ 7,930,740$ Plan members 744,074 1,020,248 1,764,322 Total Contributions 4,257,756 5,437,306 9,695,062 Investment income Net appreciation in fair value of investments 1,328,817 2,104,782 3,433,599 Interest 965,261 1,517,732 2,482,993 Total investment income 2,294,078 3,622,514 5,916,592 Less investment expense 155,677 100,584 256,261 Net investment income 2,138,401 3,521,930 5,660,331 Total Additions 6,396,157 8,959,236 15,355,393 Deductions Benefits 4,046,368 5,711,729 9,758,097 Refunds of contributions - 81,538 81,538 Administrative expense 23,785 35,029 58,814 Total Deductions 4,070,153 5,828,296 9,898,449 Net increase 2,326,004 3,130,940 5,456,944 Net assets held in trust for pension benefits Beginning of year 38,327,422 55,269,914 93,597,336 End of year 40,653,426$ 58,400,854$ 99,054,280$ -84- 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 Actuarial Percentage Actuarial Value of Funded Covered of Covered Valuation Assets Ratio Payroll Payroll Date (a) (a/b) ( c ) ((b-a)/c) Firefighters' Pension 3/1/2005 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% 3/1/2003 33,905,858 63,214,068 29,308,210 53.64% 7,493,000 391.14% 3/1/2002 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% 3/1/2000 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 3/1/2005 55,269,914$ 106,426,694$ 51,156,780 51.93% 10,642,000$ 480.71% 3/1/2004 54,469,873 101,824,016 47,354,143 53.49% 10,217,000 463.48% 3/1/2003 48,533,981 98,307,729 49,773,748 49.37% 10,074,000 494.08% 3/1/2002 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 36,649,435 57.25% 9,443,000 388.11% 3/1/2000 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) 12/31/2005 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% 12/31/1996 38,803,600 41,412,067 2,608,467 93.70% 19,608,848 13.30% Illinois Municipal Retirement Fund (Township) 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 - 12/31/1995 546,997 484,603 (62,394) 112.88% 346,067 - Information in this table has been presented for as many years as available. (b) Unfunded AAL (UAAL) (b-a) February 28, 2006 Actuarial Accrued Liability (AAL) Projected Unit Credit -85- CITY OF EVANSTON, ILLINOIS Firefighters and Police Pension Funds Schedules of Employer Contribution Required Supplementary Information Annual Annual Fiscal Required Percentage Required Percentage Year Contribution Contributed Contribution Contributed 2005 3,317,158$ N/A 4,071,765$ N/A 2004 3,041,911 81.98% 4,274,043 75.37% 2003 2,685,046 108.30% 3,505,934 110.63% 2002 2,355,236 102.75% 3,224,902 101.82% 2001 2,209,466 101.34% 2,990,038 101.12% 2000 2,145,764 101.42% 2,764,148 101.33% 1999 2,017,901 101.15% 2,707,362 101.14% 1998 2,025,630 101.07% 2,667,604 101.20% 1997 1,986,878 99.58% 2,526,744 99.92% 1996 2,197,623 100.69% 2,552,331 101.09% February 28, 2006 Firefighters' Pension Fund Police Pension Fund -86- 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, 2006 Original and Final Budget Actual Variance Revenues Taxes $39,907,000 $ 41,852,972 $ 1,945,972 Licenses and permits 7,794,950 9,164,065 1,369,115 Intergovernmental 14,715,600 15,254,462 538,862 Charges for services 6,711,150 6,904,796 193,646 Fines 4,355,500 3,781,020 (574,480) Investment income 232,700 575,281 342,581 Miscellaneous 4,605,600 4,387,070 (218,530) Total Revenues 78,322,500 81,919,666 3,597,166 Expenditures General management and support 12,602,500 13,862,563 (1,260,063) Public safety 28,701,200 29,892,818 (1,191,618) Public works 11,727,800 11,587,586 140,214 Health and human resource development 5,337,400 4,565,703 771,697 Recreation and cultural opportunities 16,345,800 16,187,980 157,820 Housing and economic development 2,853,700 2,902,902 (49,202) Pensions 4,157,400 4,627,930 (470,530) Total Expenditures 81,725,800 83,627,482 (1,901,682) (Deficiency) of Revenues (under) Expenditures (3,403,300) (1,707,816)1,695,484 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 309,000 884,043 575,043 Washington National TIF Debt Service Fund 137,900 137,900 - Southwest TIF II Debt Service Fund 128,800 128,800 - Southwest TIF I Debt Service Fund 21,200 21,200 - Maple Avenue Garage - (300,000)(300,000) Capital Improvement Fund 265,200 265,200 - Fleet Fund - (19,000) (19,000) Special Assessment Capital Project Fund 31,800 31,800 - Water Fund 2,693,600 2,693,600 - Capital Improvement Fund (813,500) (813,500)- General Obligation Debt Service Fund (175,000) (125,750)49,250 3,403,300 3,708,593 305,293 Excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses -$ 2,000,777 2,000,777$ Fund Balance Beginning of year 31,979,049 End of yea 33,979,826$ -87- CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 1. FIREFIGHTERS' AND POLICE PENSION FUNDS Firefighters' Pension Fund Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method NOTE 2. DIGEST OF CHANGES - IMRF The principal changes were: - For regular members, fewer normal and early retirements are expected to occur. NOTE 3. EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN INDIVIDUAL FUNDS Fund Actual Budget Excess General Obligation Debt $ 10,289,539 $ 9,881,447 $ 408,092 Special Service District No. 5 452,705 430,820 21,885 Washington National Tax Increment District 4,836,563 1,743,350 3,093,213 Town Fund 217,369 215,550 1,819 payroll, closed period 28 years Fair market value The information presented in the required supplementary schedules was determinedas part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Projected Unit Credit Level percentage of March 1, 2005 Projected Unit Credit Level percentage of The followingCity funds had an excess of actual budgetary expenditures over original and final budget for the year ended February 28, 2006: The actuarial assumptions used to determinethe actuarial accrued liability for 2005 are based on the 2002- 2004 Experience Study. - The 1994 Group Annuity Mortality implemented 28 years Fair market value payroll, closed period March 1, 2005 Police Pension Fund -88- GOVERNMENTAL FUND TYPES City Funds Mayor's Special Housing - to account for costs associated with housing-related programs of the City. Community Development Loan - to account for residential rehabilitation loans to residents. Continued Community Development Block Grant - to account for revenues and expenditures of the community block grant program. Financing is provided by the federal government on a reimbursement basis in accordance with federal formula. Expenditures are made in accordance with requirements of federal law. Special Service District No. 4 - to account for promotion, advertisement, and street maintenance costs of the area located in the City's central business district. Financing is provided by the City through an annual property tax levy. 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. Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Motor Fuel Tax - to account for the operation of street maintenance programs and capital projects as authorized by the Illinois Department of Transportation. Financing is provided from the City's share of gasoline taxes. HOME - to account for the activity of the HOME program. Financing is provided by the federal government. Expenditures are made in accordance with the requirements of federal law. Economic Development - to account for cost associated with economic development activities of the City. Financing is provided primarily by real estate transfer tax revenues. Emergency Telephone System - to account for revenues and expenditures for 911 emergency telephone service. Financing is provided by network connection surcharges. Library - to account for the activity of the funds donated to the library. These funds are invested at the direction of the library board and are used for library acquisitions. Neighborhood Improvement - to account for a portion of the sales tax revenues derived from retail sales of the Home Depot U.S.A. Inc. store in Evanston. Sales tax revenues allocated to this fund are to be expended on public projects that will benefit the immediate neighborhood of the store. Township Funds Town - to account for general adminstrative services. Debt Service funds are used to account for the servicing of general long-term debt. 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. Special Assessment - to account for capital improvements financed by special assessments on property holder and public benefit contributions from the City. Capital Projects Funds Capital projects are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. 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. Howard Ridge Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. General Assistance - to account for the assistance given to persons and/or families to meet their basic living expenses. Debt Service Funds Special 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. Special Revenue Funds - Continued THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet Emergency Motor Economic Telephone Fuel Tax Development System Library Cash and equivalents 2,540,799$ 1,113,210$ 2,217,430$ 62,125$ Investments - - - 2,425,919 Receivables Property taxes (net of allowance) Current year levy - - - - Notes - - - - Accounts - - - - Allowance - - - - Special assessments - - - - Accrued interest - - - 2,933 Other - 19,273 147,674 - Due from other governments 179,094 - - - Due from other funds 109 41,586 - - Total Assets 2,720,002$ 1,174,069$ 2,365,104$ 2,490,977$ Liabilities Vouchers payable 46,321$ 47,900$ 37,454$ -$ Accrued payroll - 2,664 4,956 - Other - - - - Due to other governments - - - - Due to other funds 367,068 3,613 1,852 - Unearned revenues - - - - Total Liabilities 413,389 54,177 44,262 - Fund Balances Reserved for notes receivable - - - - Reseved for debt service - - - - Unreserved Capital projects 2,306,613 - - 2,490,977 Undesignated - 1,119,892 2,320,842 - Total Fund Balances 2,306,613 1,119,892 2,320,842 2,490,977 Total Liabilities and Fund Balances 2,720,002$ 1,174,069$ 2,365,104$ 2,490,977$ Liabilities and Fund Balances - 89 - Assets February 28, 2006 Special Revenue Special Mayor's Community Community Service Employer Total Neighborhood Special Development Development District Pension City Improvement Housing HOME Block Grant Loan No. 4 Contribution Funds 22,498$ 92,808$ 204,443$ 4,626$ 656,748$ 2,287$ -$ 6,916,974$ - - - - - - - 2,425,919 - - - - - 238,191 6,235,012 6,473,203 - 1,444,886 3,201,381 12,799 1,473,105 - - 6,132,171 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,933 - 8,667 - - - - - 175,614 - - - 116,677 - - - 295,771 20,000 - - 14,788 75,000 - - 151,483 42,498$ 1,546,361$ 3,405,824$ 148,890$ 2,204,853$ 240,478$ 6,235,012$ 22,574,068$ -$ -$ 91,826$ 56,912$ 9,924$ -$ -$ 290,337$ - - - 4,037 - - - 11,657 - - - - 1,985 - - 1,985 - - 62,862 - 4,603 - - 67,465 - - - 75,142 109 20,000 2,197,822 2,665,606 - - - - - 134,617 4,037,190 4,171,807 - - 154,688 136,091 16,621 154,617 6,235,012 7,208,857 - 1,444,886 3,201,381 12,799 1,473,105 - - 6,132,171 - - - - - - - - - - - - - - - 4,797,590 42,498 101,475 49,755 - 715,127 85,861 - 4,435,450 42,498 1,546,361 3,251,136 12,799 2,188,232 85,861 - 15,365,211 42,498$ 1,546,361$ 3,405,824$ 148,890$ 2,204,853$ 240,478$ 6,235,012$ 22,574,068$ Continued - 90 - Special Revenue CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Total Town General Township Fund Assistance Funds Total Cash and equivalents 189,023$ 532,160$ 721,183$ 7,638,157$ Investments - - - 2,425,919 Receivables Property taxes (net of allowance) Current year levy 204,371 566,489 770,860 7,244,063 Notes - - - 6,132,171 Accounts - - - - Allowance - - - - Special assessments - - - - Accrued interest - - - 2,933 Other - 23,443 23,443 199,057 Due from other governments - - - 295,771 Due from other funds 200,786 - 200,786 352,269 Total Assets 594,180$ 1,122,092$ 1,716,272$ 24,290,340$ Liabilities Vouchers payable 32,511$ 30,080$ 62,591$ 352,928$ Accrued payroll - - - 11,657 Other - - - 1,985 Due to other governments - - - 67,465 Due to other funds - 200,786 200,786 2,866,392 Unearned revenues 189,717 527,782 717,499 4,889,306 Total Liabilities 222,228 758,648 980,876 8,189,733 Fund Balances Reserved for notes receivable - - - 6,132,171 Reseved for debt service - - - - Unreserved Capital projects - - - 4,797,590 Undesignated 371,952 363,444 735,396 5,170,846 Total Fund Balances 371,952 363,444 735,396 16,100,607 Total Liabilities and Fund Balances 594,180$ 1,122,092$ 1,716,272$ 24,290,340$ Liabilities and Fund Balances - 91 - Assets February 28, 2006 Special Revenue Central Howard Washington Howard Special Business Southwest Hartrey National Ridge General Service Tax Tax Tax Tax Tax Obligation District Increment Increment Increment Increment Increment Debt No.5 District District District District District Total 621,113$ 39,596$ 597,859$ 883,631$ 2,461,808$ 3,748,750$ -$ 8,352,757$ 1,498,753 - 7,471,346 - - 1,999,000 - 10,969,099 7,500,121 416,819 6,709,445 557,665 1,140,225 1,525,951 84,284 17,934,510 - - - - - - - - - - - - - - 95,220 95,220 - - - - - - - - - - - - - - - - 20,983 - 28,366 - - 15,055 - 64,404 - - - - - - - - - - - - - - - - 1,787,137 - - - - 20,000 - 1,807,137 11,428,107$ 456,415$ 14,807,016$ 1,441,296$ 3,602,033$ 7,308,756$ 179,504$ 39,223,127$ 704$ -$ 1,667$ -$ -$ 5,609$ -$ 7,980$ - - 2,813 - - - - 2,813 - - - - - - - - - - - - - - - - - - 125,622 - - - 49,303 174,925 4,876,099 225,769 4,323,708 283,965 668,404 832,623 45,967 11,256,535 4,876,803 225,769 4,453,810 283,965 668,404 838,232 95,270 11,442,253 - - - - - - - - 6,551,304 230,646 10,353,206 1,157,331 2,933,629 6,470,524 84,234 27,780,874 - - - - - - - - - - - - - - - - 6,551,304 230,646 10,353,206 1,157,331 2,933,629 6,470,524 84,234 27,780,874 11,428,107$ 456,415$ 14,807,016$ 1,441,296$ 3,602,033$ 7,308,756$ 179,504$ 39,223,127$ Continued - 92 - Debt Service CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Central Business Total Tax Nonmajor Capital Increment Special Governmental Improvements District Assessment Total Funds Cash and equivalents 4,266,843$ 4,217,608$ 1,809,663$ 10,294,114$ 26,285,028$ Investments 9,938,158 - - 9,938,158 23,333,176 Receivables Property taxes (net of allowance) Current year levy - - - - 25,178,573 Notes 23,700 96,649 - 120,349 6,252,520 Accounts - - - - 95,220 Allowance - (96,649) - (96,649) (96,649) Special assessments - - 769,274 769,274 769,274 Accrued interest 26,138 - - 26,138 93,475 Other 300 - - 300 199,357 Due from other governments - - - - 295,771 Due from other funds - 2,610 222 2,832 2,162,238 Total Assets 14,255,139$ 4,220,218$ 2,579,159$ 21,054,516$ 84,567,983$ Liabilities Vouchers payable 424,114$ 2,625$ -$ 426,739$ 787,647$ Accrued payroll - - - - 14,470 Other - - - - 1,985 Due to other governments - - - - 67,465 Due to other funds 79,258 - - 79,258 3,120,575 Unearned revenues - - 769,274 769,274 16,915,115 Total Liabilities 503,372 2,625 769,274 1,275,271 20,907,257 Fund Balances Reserved for notes receivable 23,700 - - 23,700 6,155,871 Reseved for debt service - - - - 27,780,874 Unreserved Capital projects 13,728,067 4,217,593 1,809,885 19,755,545 24,553,135 Undesignated - - - - 5,170,846 Total Fund Balances 13,751,767 4,217,593 1,809,885 19,779,245 63,660,726 Total Liabilities and Fund Balances 14,255,139$ 4,220,218$ 2,579,159$ 21,054,516$ 84,567,983$ Concluded Liabilities and Fund Balances - 93 - Capital Projects Assets February 28, 2006 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Emergenc Moto Economi Telephon Fuel Ta Developmen Syste Librar Revenue Taxes -$ 1,576,389$ 1,071,951$ -$ Special assessment - - - - Intergovernmenta 2,158,221 - - - Investment incom 75,950 - - 244,042 Earnfare - - - - SSI reimbursemen - - - - Emergency assistance reimbursemen - - - - Miscellaneou - - - 101,996 Total Revenue 2,234,171 1,576,389 1,071,951 346,038 Expenditure Curren General management and suppor - - - - Public safet - - 1,251,414 - Public works 1,554,835 - - - Recreation and cultural opportunitie - - - 117,000 Housing and economic developmen - 763,751 - - Debt servic Principal - - - - Interes - - - - Fiscal agent fee - - - - Capital outla - - - - Total Expenditure 1,554,835 763,751 1,251,414 117,000 Excess (Deficiency) of Revenues Over (Under) Expenditure 679,336 812,638 (179,463) 229,038 Other Financing Sources (Uses) Proceeds from sale of bond - - - - Escrow funding - - - - Premiums and discoun - - - - Capitalized Interest Incom - - - - Capitalized Interest Expens - - - - Transfers in (out) General Fun (772,500) - - - Economic Developmen - - - - Community Development Block Gran - - - - Community Development Loa - - - - Town Fun - - - - General Assistance Fun - - - - General Obligation Debt Service Fun - - - - Central Business Tax Increment Distric - - - - Washington National Tax Increment Distric - - - - Howard Ridge Tax Increment Distric - 37,521 - - Special Assesstment Capital Projec - - - - Washington National Tax Increment Distric - - - - Water Fun - - - - Sewer Fun - - - - Maple Avenue Garage Fun - (650,000) - - Fleet Fun - - - - Total Other Financing Sources (Uses (772,500) (612,479) - - Net Change in Fund Balance (93,164) 200,159 (179,463) 229,038 Fund Balances -Beginning of Yea 2,399,777 919,733 2,500,305 2,261,939 Fund Balances - End of Year 2,306,613$ 1,119,892$ 2,320,842$ 2,490,977$ - 94 - Year ended February 28, 200 Special Revenue Specia Mayor'Communit Communit Servic Employe Total Neighborhoo Specia Developmen Development Distric Pensio Cit Improvemen Housin HOME Block Gran Loa No. 4 Contributio Funds 20,000$ -$ -$ -$ -$ 255,430$ 7,930,740$ 10,854,510$ - - - - - - - - - - 730,230 2,342,426 (2,857) - - 5,228,020 - 11,524 20,809 - 3,849 330 - 356,504 - - - - - - - - - - - - - - - - - - - - - - - - - 47,444 32,807 35,225 - - - 217,472 20,000 58,968 783,846 2,377,651 992 255,760 7,930,740 16,656,506 - - - - - - - - - - - - - - 7,930,740 9,182,154 - - - - - - - 1,554,835 - - - - - - - 117,000 - 174,586 79,490 2,457,202 20,924 245,000 - 3,740,953 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 174,586 79,490 2,457,202 20,924 245,000 7,930,740 14,594,942 20,000 (115,618) 704,356 (79,551) (19,932) 10,760 - 2,061,564 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (31,800) - - - - - (804,300) - - - - - - - - - - - - (79,551) - - (79,551) - - - 79,551 - - - 79,551 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 37,521 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (650,000) - - - - - - - - - (31,800) - 79,551 (79,551) - - (1,416,779) 20,000 (147,418) 704,356 - (99,483) 10,760 - 644,785 22,498 1,693,779 2,546,780 12,799 2,287,715 75,101 - 14,720,426 42,498$ 1,546,361$ 3,251,136$ 12,799$ 2,188,232$ 85,861$ -$ 15,365,211$ Continue - 95 - Special Revenue CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Continue Tota Town General Township Fund Assistanc Funds Tota Revenue Taxes 303,822$ 792,836$ 1,096,658$ 11,951,168$ Special assessment - - - - Intergovernmenta 41,218 - 41,218 5,269,238 Investment incom 1,334 2,726 4,060 360,564 Earnfare - 739 739 739 SSI reimbursemen - 42,659 42,659 42,659 Emergency assistance reimbursemen - 66,008 66,008 66,008 Miscellaneou - - - 217,472 Total Revenue 346,374 904,968 1,251,342 17,907,848 Expenditure Curren General management and suppor 217,369 883,850 1,101,219 1,101,219 Public safet - - - 9,182,154 Public works - - - 1,554,835 Recreation and cultural opportunitie - - - 117,000 Housing and economic developmen - - - 3,740,953 Debt servic Principal - - - - Interes - - - - Fiscal agent fee - - - - Capital outla - - - - Total Expenditure 217,369 883,850 1,101,219 15,696,161 Excess (Deficiency) of Revenues Over (Under) Expenditure 129,005 21,118 150,123 2,211,687 Other Financing Sources (Uses) Proceeds from sale of bond - - - - Escrow funding - - - - Premiums and discoun - - - - Capitalized Interest Incom - - - - Capitalized Interest Expens - - - - Transfers in (out) General Fun - - - (804,300) Economic Developmen - - - - Community Development Block Gran - - - (79,551) Community Development Loa - - - 79,551 Town Fun - 123,171 123,171 123,171 General Assistance Fun (123,171) - (123,171) (123,171) General Obligation Debt Service Fun - - - - Central Business Tax Increment Distric - - - - Washington National Tax Increment Distric - - - - Howard Ridge Tax Increment Distric - - - 37,521 Special Assesstment Capital Projec - - - - Washington National Tax Increment Distric - - - - Water Fun - - - - Sewer Fun - - - - Maple Avenue Garage Fun - - - (650,000) Fleet Fun - - - - Total Other Financing Sources (Uses (123,171) 123,171 - (1,416,779) Net Change in Fund Balance 5,834 144,289 150,123 794,908 Fund Balances -Beginning of Yea 366,118 219,155 585,273 15,305,699 Fund Balances - End of Year 371,952$ 363,444$ 735,396$ 16,100,607$ - 96 - Special Revenue Year ended February 28, 200 Central Howar Washington Howar Special Busines Southwes Hartre Nationa Ridg Genera Servic Tax Tax Tax Tax Tax Obligatio Distric Incremen Incremen Incremen Incremen Incremen Deb No.5 Distric Distric Distric Distric Distric Tota 8,835,654$ 451,279$ 8,634,023$ 580,477$ 1,351,654$ 1,812,820$ 133,448$ 21,799,355$ - - - - - - - - - - - - - - - - 387,201 595 163,760 21,524 120,936 80,165 89 774,270 - - - - - - - - - - - - - - - - - - - - - - - - 5 - - - - - - 5 9,222,860 451,874 8,797,783 602,001 1,472,590 1,892,985 133,537 22,573,630 804 17,142 111,446 - - 1,446 6,435 137,273 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,380,000 255,000 295,000 225,000 395,000 140,000 - 7,690,000 3,623,931 183,748 357,041 58,500 288,620 1,345,052 - 5,856,892 183,826 - 25,947 - - 113,052 - 322,825 - - - - - - - - 10,188,561 455,890 789,434 283,500 683,620 1,599,550 6,435 14,006,990 (965,701) (4,016) 8,008,349 318,501 788,970 293,435 127,102 8,566,640 6,205,000 - - - - - - 6,205,000 (6,626,389) - - - - - - (6,626,389) 479,204 - - - - - - 479,204 354,581 - - - - - - 354,581 - - - - - - - - 125,750 - (884,043) (21,200) (128,800) (137,900) - (1,046,193) - - - - - - (37,521) (37,521) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 845,315 - 845,315 - - (845,315) - - - - (845,315) - - - - - - - - 300,500 - - - - - - 300,500 - - - - - - (5,347) (5,347) - - (268,449) - - - - (268,449) - - (899,602) - - - - (899,602) - - (4,500,000) - - - - (4,500,000) - - (51,650) - - - - (51,650) 838,646 - (7,449,059) (21,200) (128,800) 707,415 (42,868) (6,095,866) (127,055) (4,016) 559,290 297,301 660,170 1,000,850 84,234 2,470,774 6,678,359 234,662 9,793,916 860,030 2,273,459 5,469,674 - 25,310,100 6,551,304$ 230,646$ 10,353,206$ 1,157,331$ 2,933,629$ 6,470,524$ 84,234$ 27,780,874$ Continue - 97 - Debt Service CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Continue Central Busines Total Tax Nonmajo Capita Incremen Specia Governmenta Improvement Distric Assessmen Tota Funds Revenue Taxes -$ -$ -$ -$ 33,750,523$ Special assessment - - 545,655 545,655 545,655 Intergovernmenta 582,700 - - 582,700 5,851,938 Investment incom 362,175 100,271 56,267 518,713 1,653,547 Earnfare - - - - 739 SSI reimbursemen - - - - 42,659 Emergency assistance reimbursemen - - - - 66,008 Miscellaneou 1,098,441 - - 1,098,441 1,315,918 Total Revenue 2,043,316 100,271 601,922 2,745,509 43,226,987 Expenditure Curren General management and suppor 55,037 53,326 3,149 111,512 1,350,004 Public safet - - - - 9,182,154 Public works - - - - 1,554,835 Recreation and cultural opportunitie - - - - 117,000 Housing and economic developmen - - - - 3,740,953 Debt servic Principal - - - - 7,690,000 Interes - - - - 5,856,892 Fiscal agent fee - - - - 322,825 Capital outla 9,667,853 45,000 - 9,712,853 9,712,853 Total Expenditure 9,722,890 98,326 3,149 9,824,365 39,527,516 Excess (Deficiency) of Revenues Over (Under) Expenditure (7,679,574) 1,945 598,773 (7,078,856) 3,699,471 Other Financing Sources (Uses) Proceeds from sale of bond 9,540,000 - 465,000 10,005,000 16,210,000 Escrow funding - - - - (6,626,389) Premiums and discoun 699,720 30,049 729,769 1,208,973 Capitalized Interest Incom - - - - 354,581 Capitalized Interest Expens (354,581) - - (354,581) (354,581) Transfers in (out) General Fun 548,300 - (31,800) 516,500 (1,333,993) Economic Developmen - - - - (37,521) Community Development Block Gran - - - - (79,551) Community Development Loa - - - - 79,551 Town Fun - - - - 123,171 General Assistance Fun - - - - (123,171) General Obligation Debt Service Fun - - (300,500) (300,500) (300,500) Central Business Tax Increment Distric - - - - 845,315 Washington National Tax Increment Distric - - - - (845,315) Howard Ridge Tax Increment Distric - - - - 37,521 Special Assesstment Capital Projec - - - - 300,500 Washington National Tax Increment Distric - - - - (5,347) Water Fun (3,300,000) - - (3,300,000) (3,568,449) Sewer Fun - - - - (899,602) Maple Avenue Garage Fun - - - - (5,150,000) Fleet Fun (105,000) - - (105,000) (156,650) Total Other Financing Sources (Uses 7,028,439 - 162,749 7,191,188 (321,457) Net Change in Fund Balance (651,135) 1,945 761,522 112,332 3,378,014 Fund Balances -Beginning of Yea 14,402,902 4,215,648 1,048,363 19,666,913 60,282,712 Fund Balances - End of Year 13,751,767$ 4,217,593$ 1,809,885$ 19,779,245$ 63,660,726$ Conclude Year ended February 28, 200 - 98 - Capital Projects CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Taxes Property Current year levy 16,700,000$ 16,433,625$ (266,375)$ Prior year levy 25,000 214,385 189,385 Total Property Taxes 16,725,000 16,648,010 (76,990) Personal Property Replacement Tax 495,500 878,108 382,608 Other Taxes Auto rental 34,000 32,372 (1,628) Sales - home rule 5,500,000 5,611,780 111,780 Utility 8,200,000 8,858,216 658,216 State use 714,500 897,667 183,167 Athletic contest 500,000 663,896 163,896 Foreign fire insurance 50,000 - (50,000) Cigarette 378,000 400,492 22,492 Evanston motor fuel 310,000 273,915 (36,085) Real estate transfer 4,000,000 4,008,668 8,668 Poured liquor 1,500,000 1,772,039 272,039 Affordable housing demolition tax - 10,000 10,000 Parking 1,500,000 1,797,809 297,809 Total Other Taxes 22,686,500 24,326,854 1,640,354 Total Taxes 39,907,000 41,852,972 1,945,972 Continued Year ended February 28, 2006 - 99 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Licenses and Permits Vehicle licenses 2,100,000$ 2,128,640$ 28,640$ Business licenses 90,000 80,195 (9,805) Long-term care licenses 112,400 97,980 (14,420) Rooming house licenses 194,700 169,048 (25,652) Pet licenses 40,000 46,930 6,930 Bicycle licenses 50 - (50) Farmers' market licenses 27,700 24,300 (3,400) Contractors' licenses 90,000 85,690 (4,310) Other licenses - 880 880 Building permits 3,100,000 3,973,861 873,861 Plumbing permits 160,000 204,177 44,177 Electrical permits 175,000 210,450 35,450 Elevator permits 55,000 48,270 (6,730) Signs and awning permits 10,000 9,306 (694) Combustion equipment permits 180,000 330,420 150,420 Commercial driveway permits 700 22,161 21,461 Other permits 250,000 347,380 97,380 Liquor licenses 275,000 412,708 137,708 Fire alarm permit fees - (975) (975) Cable franchise fee 660,000 657,546 (2,454) Nicor franchise fee 50,000 88,784 38,784 Northwestern/Centel easement 40,000 47,000 7,000 Residents' parking permits 116,000 118,141 2,141 Visitor's parking permits 18,000 13,608 (4,392) Sign license fee 35,000 36,765 1,765 Alarm panel franchise fee 14,400 10,800 (3,600) Plat approval and sign appeal fees 1,000 - (1,000) Total Licenses and Permits 7,794,950 9,164,065 1,369,115 Continued - 100 - Year ended February 28, 2006 CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Intergovernmental - Revenue from Other Agencies Health Department SEED Grant 400,000$ 85,624$ (314,376)$ Preventive health block grant 56,600 41,810 (14,790) Fire department training grant 600 - (600) Illinois state health department basic services grant 63,300 95,029 31,729 Bio-terrorrism grant 80,000 - (80,000) Family planning grant 54,500 55,556 1,056 Hearing and vision grant 6,400 13,767 7,367 ICJIA grant - community service 15,000 - (15,000) ICJIA grant - victim 60,000 - (60,000) Other federal aid 14,100 - (14,100) Violent crime victim assistance grant 24,700 15,000 (9,700) Federal police grant 44,400 - (44,400) Civil defense grants 20,000 11,372 (8,628) Retailer and service occupation tax 8,200,000 8,484,692 284,692 State income tax 5,000,000 5,637,725 637,725 State highway maintenance 90,000 94,099 4,099 District 65 dental 1,500 3,000 1,500 Commission on Aging grant 33,000 31,998 (1,002) Other state / county grants - 240,843 240,843 Police training grant 8,000 - (8,000) Dental sealants grant 4,200 2,367 (1,833) Lead grant 4,000 524 (3,476) Federal grant / Aid - 20,700 20,700 Illinois Tobacco Free Community 25,000 25,593 593 Art council - 47,440 47,440 Kid care agreement 11,300 6,150 (5,150) HUD emergency shelter grant 88,100 89,958 1,858 Leadbase paint control grant 178,000 8,921 (169,079) Genetic education grant 10,200 5,100 (5,100) Tanning parlor inspection - 200 200 Prostate cancer awareness - 1,327 1,327 Family case management grant 189,800 193,817 4,017 Infant immunization grant 2,900 - (2,900) Teen parent service program 30,000 38,600 8,600 Vector prevention grant - 3,241 3,241 Access to care - 9 9 Total Intergovernmental - Revenue from Other Agencies 14,715,600 15,254,462 538,862 Continued Year ended February 28, 2006 - 101 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Charges for Services Recreation Recreation - program 4,084,500$ 4,310,448$ 225,948$ Total Recreation 4,084,500 4,310,448 225,948 Library Film rentals 63,000 44,107 (18,893) Books, lost and paid 21,000 16,781 (4,219) Reserves 5,600 6,461 861 Miscellaneous revenues 3,500 1,345 (2,155) Rental books 8,600 2,004 (6,596) Non-resident cards 3,000 3,929 929 Copy machine charges 26,000 21,259 (4,741) Library meeting room rentals 9,000 11,260 2,260 Rental income 27,000 27,003 3 State library per capita grant 92,700 92,075 (625) CD-ROM software rentals 2,000 1,025 (975) Total Library 261,400 227,249 (34,151) Continued - 102 - Year ended February 28, 2006 CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Charges for Services Other Service Charges Family planning clinic -$ 1,292 $ 1,292 Dental clinic fees and check up fees 68,000 68,540 540 Venereal disease program - Skokie 2,250 2,250 - Birth and death records 131,000 128,996 (2,004) TB nursing services 12,000 12,102 102 Flu and pneumonia program 23,500 10,852 (12,648) Health clinic fees - immunizations 4,200 2,961 (1,239) Health clinic fees - sexually transmitted disease 8,000 - (8,000) Health clinic fees - TB 3,500 3,680 180 Health clinic fees - lab 16,200 13,743 (2,457) Health clinic fees - food establishment 150,000 151,072 1,072 Health clinic fees - school physicals 2,300 1,541 (759) S.T.D.O. and S.T.D.E. - 8,255 8,255 Dental check up 9,000 9,545 545 Emergency dental exam 100 70 (30) X-Ray - 40 40 Amalgam filling 900 110 (790) Resin filling 4,000 4,695 695 Sedative filling 100 10 (90) Extraction 100 495 395 Pulpotomy 800 905 105 Sealant office visit 700 647 (53) Additional sealant 100 30 (70) Temporary license fee 3,300 2,537 (763) Food delivery vehicle 6,500 6,545 45 Scavenger truck 2,300 2,340 40 Beverage snack vending machine 22,000 34,624 12,624 Tobacco license 15,000 12,750 (2,250) Funeral director license - 6,330 6,330 Temporary funeral direct license - 5,942 5,942 Ambulance services 470,000 638,292 168,292 Towing charges - (10,010) (10,010) Weights and measures examination 1,000 920 (80) Senior taxi coupon sales 68,000 97,779 29,779 Recycling - material sales - 1,200 1,200 Background check daycare providers - (180) (180) Police report fees 15,000 17,477 2,477 Child health 1,700 - (1,700) Food vending machine 2,000 36 (1,964) Inoculation funding 384,800 - (384,800) Continued Year ended February 28, 2006 - 103 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Charges for Services - Continued Other Service Charges - Continued Fire report fees 900$ 1,020$ 120$ Fire cost recovery charges 5,000 7,869 2,869 Fire building inspection 8,000 1,750 (6,250) Other service charges 4,000 2,108 (1,892) Condo conversion application 70,000 80,101 10,101 Zoning fees 40,000 59,352 19,352 Alarm panel subscription fees 100,000 205,889 105,889 Skokie animal boarding fees 1,000 430 (570) Passport execution fees 10,000 5,805 (4,195) Sanitation classes and charges 60,000 73,090 13,090 Wood recycling - 16,919 16,919 Plan review 10,000 6,130 (3,870) Recycling service charge and penalty 628,000 668,223 40,223 Total Other Service Charges 2,365,250 2,367,099 1,849 Total Charges for Services 6,711,150 6,904,796 193,646 Fines Ticket fines 3,640,000 2,843,211 (796,789) Regular fines 185,000 272,911 87,911 Housing code violations - 29,279 29,279 Permit penalty fees 5,000 69,573 64,573 False alarm panel fines - fire 55,000 51,280 (3,720) False alarm panel fines - police 85,000 133,504 48,504 Administrative adjudication 95,000 111,660 16,660 Library fines 169,000 177,777 8,777 Boot release fees 121,500 91,825 (29,675) Total Fines 4,355,500 3,781,020 (574,480) Continued - 104 - Year ended February 28, 2006 CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Investment Income 232,700$ 575,281$ 342,581$ Miscellaneous Charges to Other Funds Charges to Water for administrative expenses 1,113,000 1,113,000 - Economic Development 376,900 385,300 8,400 Maple Garage 40,700 40,700 - Emergency Telephone System 170,000 170,000 - Community Development Block Grant 908,300 936,672 28,372 HOME 39,300 39,288 (12) Sewer 633,100 647,400 14,300 Motor Vehicle Parking System 688,900 688,900 - Fleet Services 127,000 123,300 (3,700) Total Charges to Other Funds 4,097,200 4,144,560 47,360 Miscellaneous Other Revenues Payments in lieu of taxes 27,000 26,898 (102) Sales and rentals of property 102,900 68,950 (33,950) Compensation for damage to City property 50,000 40,775 (9,225) Parking permits - Ryan Field 12,000 13,020 1,020 Miscellaneous 316,500 92,867 (223,633) Total Other Revenues 508,400 242,510 (265,890) Total Miscellaneous 4,605,600 4,387,070 (218,530) Total Revenues 78,322,500$ 81,919,666$ 3,597,166$ Concluded Year ended February 28, 2006 - 105 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance General Management and Support City Council 291,000$ 270,871$ 20,129$ City Manager 3,646,900 3,311,124 335,776 City Clerk 196,000 207,209 (11,209) Law Department 690,600 648,009 42,591 Human Resources 1,234,000 1,482,908 (248,908) Finance 1,762,600 1,797,763 (35,163) Facilities management 2,357,000 2,372,129 (15,129) Miscellaneous operating requirements 2,424,400 3,772,550 (1,348,150) Total General Management and Support 12,602,500 13,862,563 (1,260,063) Public Safety Emergency services and disaster assistance 81,900 39,252 42,648 Police 18,095,400 18,670,460 (575,060) Fire 10,523,900 11,183,106 (659,206) Total Public Safety 28,701,200 29,892,818 (1,191,618) Public Works Municipal service center 299,300 336,526 (37,226) Public Works Director 195,400 199,801 (4,401) City Engineer 1,111,800 1,154,822 (43,022) Traffic Engineer 2,376,700 2,270,500 106,200 Streets 3,450,400 3,254,728 195,672 Sanitation 4,294,200 4,371,209 (77,009) Total Public Works 11,727,800 11,587,586 140,214 Continued Year ended February 28, 2006 - 106 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Health and Human Resource Development Health and Human Services Director 350,700$ 290,053$ 60,647$ Health Department 2,692,200 2,049,441 642,759 Emergency assistance services 334,600 245,484 89,116 Mental health and community purchased services 1,032,000 1,035,632 (3,632) Commission on Aging 117,500 115,609 1,891 Subsidized Taxicab Program 212,400 285,935 (73,535) Human Relations 598,000 543,549 54,451 Total Health and Human Resource Development 5,337,400 4,565,703 771,697 Recreation and Cultural Opportunities Library 4,147,900 4,359,676 (211,776) Recreation 6,707,900 6,815,658 (107,758) Parks and forestry 4,190,600 3,797,286 393,314 Ecology Center 414,500 412,291 2,209 Arts Council 884,900 803,069 81,831 Total Recreation and Cultural Opportunities 16,345,800 16,187,980 157,820 Housing and Economic Development Community Development administration 202,700 238,939 (36,239) Planning and zoning 799,700 813,930 (14,230) Housing rehabilitation and property standards 786,000 752,195 33,805 Building code compliance 1,065,300 1,097,838 (32,538) Total Housing and Economic Development 2,853,700 2,902,902 (49,202) Pensions Illinois Municipal Retirement Pension 4,157,400 4,627,930 (470,530) Total Expenditures 81,725,800$ 83,627,482$ (1,901,682)$ Concluded Year ended February 28, 2006 - 107 - CITY OF EVANSTON, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments 2,000,000$ 2,158,221$ 158,221$ Interest 55,000 75,950 20,950 Total Revenues 2,055,000 2,234,171 179,171 Expenditures Public Works 3,090,000 1,554,835 1,535,165 Excess (Deficiency) of Revenues over (under) Expenditures (1,035,000) 679,336 1,714,336 Other Financing (Uses) Operating transfers (out) General Fund (772,500) (772,500) - Deficiency of Revenues under Expenditures and Other Financing Uses (1,807,500)$ (93,164) (1,714,336)$ Fund Balances Beginning of year 2,399,777 End of yea 2,306,613$ Year ended February 28, 2006 - 108 - CITY OF EVANSTON, ILLINOIS Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Hotel taxes 650,000$ 1,278,559$ 628,559$ Amusement taxes 300,000 297,830 (2,170) Total Revenue 950,000 1,576,389 626,389 Expenditures Housing and economic development 848,900 763,751 85,149 Excess of Revenues over Expenditures 101,100 812,638 711,538 Other Financing Sources (Uses) Operating transfers in (out) Howard Ridge Tax Increment District - 37,521 37,521 Maple Avenue Garage Fund (650,000) (650,000) - Deficiency of Revenues under Expenditures and Other Financing Uses (548,900)$ 200,159 (749,059)$ Fund Balances Beginning of year 919,733 End of yea 1,119,892$ Year ended February 28, 2006 - 109 - CITY OF EVANSTON, ILLINOIS Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Enhanced 911 surcharge 1,143,000$ 1,071,951$ (71,049)$ Interest 1,500 - (1,500) Total Revenue 1,144,500 1,071,951 (72,549) Expenditures Public Safety 2,190,300 1,251,414 938,886 Deficiency of Revenues under Expenditures (1,045,800)$ (179,463) (866,337)$ Fund Balance Beginning of year 2,500,305 End of yea 2,320,842$ Year ended February 28, 2006 - 110 - CITY OF EVANSTON, ILLINOIS Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Interest 10,000$ 11,524$ 1,524$ Miscellaneous 7,000 47,444 40,444 Total Revenue 17,000 58,968 41,968 Expenditures Housing and economic development 254,300 174,586 79,714 Excess (Deficiency) of Revenues over (under) Expenditures (237,300) (115,618) 121,682 Other Financing (Uses) Transfers (out) General Fund - (31,800) (31,800) Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses (237,300)$ (147,418) 89,882$ Fund Balance Beginning of year 1,693,779 End of yea 1,546,361$ Year ended February 28, 2006 - 111 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments Grant from the U.S. Department of Housing and Urban Development 2,824,337$ 2,342,426$ (481,911)$ Miscellaneous - 35,225 35,225 Total Revenues 2,824,337 2,377,651 (446,686) Expenditures Housing and economic development 2,824,337 2,457,202 367,135 Excess (Deficiency) of Revenues over (under) Expenditures - (79,551) (79,551) Other Financing (Uses) Transfers Community Development Loan - 79,551 79,551 Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses -$ - -$ Fund Balance Beginning of year 12,799 End of yea 12,799$ Year ended February 28, 2006 - 112 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Administration/Planning CDBG Administration 313,393$ 313,372$ 21$ Fair Housing Assistance 84,866 84,864 2 Total Administration/Planning 398,259 398,236 23 Economic Development Evanston Community Development Corp. 25,000 25,000 - Neighborhood Façade Program 20,000 - 20,000 MBE/Small Business Assistance 72,916 72,900 16 Total Economic Development 117,916 97,900 20,016 Housing Housing Rehabilitation Administration 238,000 237,991 9 Adaptive Devices - 6,383 (6,383) Community Development Administration 106,000 105,994 6 Minor Repairs/Painting Assistance - E.N.A.W. 148,000 148,000 - Program Income - Revolving Loan Fund 200,000 - 200,000 Demolition/Vacant Lot Cleanup Program - 15,510 (15,510) Civic Center Boiler - 14,558 (14,558) Housing Code Compliance 248,000 240,566 7,434 Total Housing 940,000 769,002 170,998 Continued Year ended February 28, 2006 - 113 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Neighborhood Revitalization Fleetwood Jourdain-Locker Rooms -$ 47,904$ (47,904)$ Accessible Curb Ramp Program - 64,612 (64,612) Street Light Upgrade - 41,855 (41,855) Curb/Sidewalk Replacement 75,000 65,071 9,929 Fleetwood Jourdain-Roof Replacement - 98,068 (98,068) Hemenway UM Church-Handicapped Access 53,000 53,000 - South Evanston Neighborhood Security - 3,435 (3,435) Black American Heritage and Tech Center - 24,065 (24,065) Alley Paving Program 150,000 149,860 140 Howard St. Enhancement (Outpost) - 2,729 (2,729) Mason Park 360,000 64,792 295,208 Community Development-Neighborhood Improvement 25,000 317 24,683 Handyman Assistance 12,000 8,347 3,653 McGaw YMCA Elevator Project 50,000 12,115 37,885 Reba Early Learning Center 50,000 50,000 - Ridgeville Park District-Brummel Park Lighting 16,000 16,000 - Special Assesstments / Alley Paving 80,000 67,302 12,698 Reba Park - 450 (450) Fleetwood Jourdain-Community Center 75,000 1,592 73,408 Family Focus Center Improvements 50,000 49,997 3 Graffiti Removal Program 28,521 28,524 (3) Total Neighborhood Revitalization 1,024,521 850,035 174,486 Continued - 114 - Year ended February 28, 2006 CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Public Services Adopt a Fancy Can 4,764$ 3,989$ 775$ Senior Crime Prevention 19,093 19,093 - Girls Scouts Studio B 4,300 4,300 - Evanston Community Defender 45,304 45,304 - Evanston Legal Services CCLAF 9,546 8,709 837 Youth Job Center of Evanston 67,980 67,980 - Summer Youth 47,677 47,677 - EEAC Job Counselor 3,819 3,819 - YWCA Shelter Project 36,703 36,703 - Connections for Homeless-Entry Point 12,401 12,401 - Melas at Home 9,546 9,546 - North Shore Senior Center 23,840 23,840 - First Base Homeless 4,764 4,764 - Interfaith Predatory 4,764 4,764 - Open Studio Art 4,764 4,764 - Neighborhood Youth Services 14,310 14,310 - Shorefront NFP Legacy Project 9,546 9,546 - Wildkits Scholarship and Training Program 2,391 2,391 - Interfaith Housing Program 13,365 13,365 - Metropolitan Family Service 4,764 4,764 - Total Public Services 343,641 342,029 1,612 Total Expenditures 2,824,337$ 2,457,202$ 367,135$ Concluded Year ended February 28, 2006 - 115 - CITY OF EVANSTON, ILLINOIS Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Property taxes Current year levy 255,000$ 255,000$ -$ Prior year levy - (6,110) (6,110) Interest - 330 330 Total Revenues 255,000 249,220 (5,780) Expenditures Housing and economic development 245,000 245,000 - Excess of Revenues over Expenditures 10,000$ 4,220 (5,780)$ Fund Balance Beginning of year 216,258 End of yea 220,478$ Year ended February 28, 2006 - 116 - CITY OF EVANSTON, ILLINOIS Township - Town Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Original and Final Budget Actual Variance Revenues Property taxes 330,000$ 303,822$ (26,178)$ Interest 2,000 1,334 (666) Replacement tax 30,000 41,218 11,218 Total Revenues 362,000 346,374 (15,626) Expenditures General management and support 215,550 217,369 (1,819) Excess of Revenues over Expenditures 146,450 129,005 (17,445) Other Financing (Uses) Operating transfers (out) General Assistance Fund (125,000) (123,171) 1,829 Excess of Revenues over Expenditures and Other Financing Uses 21,450$ 5,834 (15,616)$ Fund Balance Beginning of year 366,118 End of yea 371,952$ Year ended February 28, 2006 - 117 - CITY OF EVANSTON, ILLINOIS Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Original and Final Budget Actual Variance Revenues Property taxes 880,000$ 792,836$ (87,164)$ Interest 1,000 2,726 1,726 Earnfare 1,000 739 (261) SSI reimbursement 20,000 42,659 22,659 Emergency assistance reimbursement 133,730 66,008 (67,722) Total Revenues 1,035,730 904,968 (130,762) Expenditures General management and support 1,158,534 883,850 (274,684) (Deficiency) of Revenues (under) Expenditures (122,804) 21,118 143,922 Other Financing Sources Transfers in Town Fund 125,000 123,171 (1,829) Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures 2,196$ 144,289 142,093$ Fund Balance Beginning of year 219,155 End of yea 363,444$ Year ended February 28, 2006 - 118 - THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Debt Service Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budgetary Basis) Original Original Original and Final and Final and Final Budget Actual Budget Actual Budget Actual Revenues Taxes Property taxes Current year levy, net 8,758,600$ 8,794,174$ 438,000$ 437,706$ 7,235,100$ 8,204,243$ Prior year levy, net - 124,769 - (2,813) - 39,607 Sales tax - - - - 250,000 250,000 Investment income 110,000 387,201 200 595 50,000 163,760 Miscellaneous - 5 - - - - Total Revenues 8,868,600 9,306,149 438,200 435,488 7,535,100 8,657,610 Expenditures General management and support 3,000 804 - 17,142 250,000 111,446 Health and human resources development - - - - - - Debt Service Principal 5,985,000 6,175,680 250,000 265,000 2,915,000 315,000 Interest 3,673,447 3,929,229 180,820 170,563 343,000 342,291 Fiscal agent fees 220,000 183,826 - - 40,000 25,947 Total Expenditures 9,881,447 10,289,539 430,820 452,705 3,548,000 794,684 Excess (Deficiency) of Revenues over (under) Expenditures (1,012,847) (983,390) 7,380 (17,217) 3,987,100 7,862,926 Other Financing Sources (Uses) Operating transfers in (out) Bond Proceeds - 6,205,000 - - - - Escrow Funding - (6,626,389) - - - - Premiums and discounts - 479,204 - - - - Capitalized Interest Income - 354,581 - - - - General 125,750 125,750 - - (309,000) (884,043) Economic Development - - - - - - Special Service District #5 437,700 - - - - - Downtown TIF DS - - - - - - Washington National TIF DS - - - - (845,315) (845,315) Special Assessment Capital Projects 300,500 300,500 - - - - Washington National TIF - - - - - - Water - - - - - (268,449) Sewer - - - - - (899,602) Maple Avenue Garage - - - - (4,502,000) (4,500,000) Fleet - - - - - (51,650) 863,950 838,646 - - (5,656,315) (7,449,059) Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses (148,897)$ (144,744) 7,380$ (17,217) (1,669,215)$ 413,867 Fund Balances Beginning of year 1,657,918 38,069 6,858,852 End of yea 1,513,174$ 20,852$ 7,272,719$ Increment DistricObligation Debt No. 5 - 119 - Business Tax Year ended February 28, 2006 Special Central Genera Service Distric 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 600,400$ 557,665$ 1,199,900$ 1,388,058$ 998,600$ 1,599,296$ -$ 94,208$ 19,230,600$ 21,075,350$ - 19,056 - - - 1,910 - 923 - 183,452 - - - - - - - - 250,000 250,000 6,000 21,524 35,000 120,936 10,000 80,165 - 89 211,200 774,270 - - - - - - - - - 5 606,400 598,245 1,234,900 1,508,994 1,008,600 1,681,371 - 95,220 19,691,800 22,283,077 - - - - 150,000 1,446 - 6,435 403,000 137,273 600,000 - - - - - - - 600,000 - 225,000 250,000 525,000 425,000 195,000 2,580,000 - - 10,095,000 10,010,680 50,625 42,750 344,600 268,620 1,268,350 2,142,065 - - 5,860,842 6,895,518 - - - - 130,000 113,052 - - 390,000 322,825 875,625 292,750 869,600 693,620 1,743,350 4,836,563 - 6,435 17,348,842 17,366,296 (269,225) 305,495 365,300 815,374 (734,750) (3,155,192) - 88,785 2,342,958 4,916,781 - - - - - - - - - 6,205,000 - - - - - - - - - (6,626,389) - - - - - - - - - 479,204 - - - - - - - - - 354,581 (21,200) (21,200) (128,800) (128,800) (137,900) (137,900) - - (471,150) (1,046,193) - - - - - - - (37,521) - (37,521) - - - - - - - - 437,700 - - - - - 845,315 845,315 - - 845,315 845,315 - - - - - - - - (845,315) (845,315) - - - - - - - - 300,500 300,500 - - - - - - - (5,347) - (5,347) - - - - - - - - - (268,449) - - - - - - - - - (899,602) - - - - - - - - (4,502,000) (4,500,000) - - - - - - - - - (51,650) (21,200) (21,200) (128,800) (128,800) 707,415 707,415 - (42,868) (4,234,950) (6,095,866) (290,425)$ 284,295 236,500$ 686,574 (27,335)$ (2,447,777) -$ 45,917 (1,891,992)$ (1,179,085) 306,586 1,081,613 3,862,220 - 13,805,258 590,881$ 1,768,187$ 1,414,443$ 45,917$ 12,626,173$ Increment Distric Increment DistricIncrement Distric Totals - 120 - Washington Southwest Ta National Tax Howard Ridge Ta Increment Distric Howard Hartrey Ta THIS PAGE INTENTIONALLY LEFT BLANK PROPRIETARY FUND TYPES THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Net Assets Total Maple Motor Vehicle Nonmajor Avenue Parking Proprietary Garage System Funds Current Assets Cash and equivalents 2,717,885$ 2,543,217$ 5,261,102$ Investments 2,994,865 - 2,994,865 Receivables Accrued interest 25,533 - 25,533 Other - 11,686 11,686 Due from other funds 60,070 - 60,070 Total Current Assets 5,798,353 2,554,903 8,353,256 Noncurrent Assets Capital Assets Land - 2,742,522 2,742,522 Capital assets being depreciated 27,128,673 8,498,084 35,626,757 Less accumulated depreciation (3,547,929) (2,635,055) (6,182,984) Total Noncurrent Assets 23,580,744 8,605,551 32,186,295 Other Assets Receivables Notes - 309,000 309,000 Total Assets 29,379,097$ 11,469,454$ 40,848,551$ February 28, 2006 Business-type Activities-Enterprise Fund Assets - 121 - Total Maple Motor Vehicle Nonmajor Avenue Parking Proprietary Garage System Funds Current Liabilities (Payable from Current Assets) Vouchers payable 176,517$ 43,552$ 220,069$ Accrued payroll - 17,147 17,147 Interest payable - 48,897 48,897 Compensated absences payable - 108,357 108,357 General obligation bonds payable 13,100,000 585,000 13,685,000 Unamortized bond expenses and discount (21,399) - (21,399) Due to other funds 398 12,780 13,178 Total Current Liabilities Payable from Current Assets 13,255,516 815,733 14,071,249 Long-Term Liabilities General obligation bonds payable - 3,130,000 3,130,000 Total Liabilities 13,255,516 3,945,733 17,201,249 Invested in capital assets, net of related debt 10,480,744 4,890,551 15,371,295 Unrestricted 5,642,837 2,633,170 8,276,007 Total net assets 16,123,581$ 7,523,721$ 23,647,302$ Business-type Activities-Enterprise Fund Liabilities Net Assets - 122 - CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Maple Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds Operating Revenues Charges for services 1,622,573$ 2,953,064$ 4,575,637$ Miscellaneous 2 12,380 12,382 Total Operating Revenues 1,622,575 2,965,444 4,588,019 Operating Expenses Excluding Depreciation Administration - 1,052,335 1,052,335 Operations 1,879,546 1,406,282 3,285,828 Total Operating Expenses Excluding Depreciation 1,879,546 2,458,617 4,338,163 Operating Income (Loss) Before Depreciation (256,971) 506,827 249,856 Depreciation 685,311 158,717 844,028 Operating Income (Loss) (942,282) 348,110 (594,172) Nonoperating Revenues (Expenses) Investment income 101,249 74,611 175,860 Interest expense (517,028) (286,634) (803,662) Bond expenses and amortization of discount (14,559) - (14,559) Total Nonoperating Revenues (Expenses) (430,338) (212,023) (642,361) Income (Loss) Before Transfers (1,372,620) 136,087 (1,236,533) Transfers In (Out) Central Business Tax Increment District Fund 4,500,000 - 4,500,000 Economic Development Fund 650,000 - 650,000 General Fund 300,000 - 300,000 Change in Net Assets 4,077,380 136,087 4,213,467 Total Net Assets (Deficit) - Beginning of Year 12,046,201 7,387,634 19,433,835 Total Net Assets - End of Year 16,123,581$ 7,523,721$ 23,647,302$ Year ended February 28, 2006 Business-type Activities-Enterprise Fund - 123 - CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Cash Flows Maple Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds Cash Flows from Operating Activities Receipts from customers and users 1,597,042$ 2,964,810$ 4,561,852$ Receipts from interfund services provided (13,967) 85,538 71,571 Payments to suppliers (1,760,418) (1,436,153) (3,196,571) Payments to employees - (1,011,149) (1,011,149) Payments for interfund services provided (129,472) (12,912) (142,384) Net Cash Provided by (Used for) Operating Activities (306,815) 590,134 283,319 Cash Flows from Noncapital Financing Activities Transfers In (Out) Central Business Tax Increment District Fund 4,500,000 - 4,500,000 Economic Development Fund 650,000 - 650,000 General Fund 300,000 - 300,000 Net Cash Provided by Noncapital Financing Activities 5,450,000 - 5,450,000 Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets 51,000 - 51,000 Principal paid on general obligation bonds (3,800,000) (545,000) (4,345,000) Interest paid on general obligation bonds (517,028) (286,634) (803,662) Net Cash (Used for) Capital and Related Financing Activities (4,266,028) (831,634) (5,097,662) Cash Flows from Investing Activities Interest income 101,249 74,611 175,860 Net Cash Provided by Investing Activities 101,249 74,611 175,860 Net Increase (Decrease) in Cash and Equivalents 978,406 (166,889) 811,517 Cash and Equivalents Beginning of year 4,734,344 2,710,106 7,444,450 End of yea 5,712,750$ 2,543,217$ 8,255,967$ Reconciliation Cash and equivalents Unrestricted 5,712,750$ 2,543,217$ 8,255,967$ 5,712,750$ 2,543,217$ 8,255,967$ Year ended February 28, 2006 Business-type Activities-Enterprise Fund - 124 - CITY OF EVANSTON, ILLINOIS Nonmajor Proprietary Funds Statement of Cash Flows - Continued Maple Total Avenue Motor Vehicle Nonmajor Garage Parking Proprietary Fund System Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) (942,282)$ 348,110$ (594,172)$ Depreciation 685,311 158,717 844,028 Changes in assets and liabilities Other receivables - (634) (634) lnterfund receivable (13,967) 85,538 71,571 Accrued interest receivable (25,533) - (25,533) Compensated absences - 36,891 36,891 Accrued payroll - 4,295 4,295 lnterfund payable (129,472) (12,912) (142,384) Vouchers payable 119,128 (22,815) 96,313 Interest payable - (7,056) (7,056) Net Cash Provided by (Used for) Operating Activities (306,815)$ 590,134$ 283,319$ Business-type Activities-Enterprise Fund - 125 - Year ended February 28, 2006 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Net Assets Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Assets Cash and equivalents 442,062$ -$ -$ -$ 442,062$ Restricted cash and equivalents and investments - 102,515 - 376,850 479,365 Receivables Accounts - billed 1,052,876 - - - 1,052,876 Accounts - unbilled 864,508 - - - 864,508 Due from other funds 277 - - - 277 Other Receivables 12,904 - - 7,583 20,487 Inventory 527,163 - - - 527,163 Total Current Assets 2,899,790 102,515 - 384,433 3,386,738 Noncurrent Assets Restricted cash and equivalents and investments 1,082,873 1,537,458 3,050,118 4,911,617 10,582,066 Capital Assets Land 555,415 - - - 555,415 Construction in progress - - - 1,027,973 1,027,973 Capital assets being depreciated 58,187,210 - - - 58,187,210 Less accumulated depreciation (14,127,102) - - - (14,127,102) Total Capital Assets 44,615,523 - - 1,027,973 45,643,496 Total Assets 48,598,186$ 1,639,973$ 3,050,118$ 6,324,023$ 59,612,300$ February 28, 2006 Restricted Accounts Assets - 126 - Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Liabilities Vouchers payable 206,685$ -$ -$ 84,858$ 291,543$ Vouchers payable - restricted - - - 376,850 376,850 Accrued payroll 60,576 - - - 60,576 Interest payable - restricted - 24,182 - - 24,182 Revenue bonds payable - restricted - 78,333 - - 78,333 Due to other funds 28,078 - - 785 28,863 Compensated absences payable 387,900 - - - 387,900 Total Current Liabilities 683,239 102,515 - 462,493 1,248,247 Long-Term Liabilities Revenue bonds payable 3,631,667 - - - 3,631,667 Unamortized bond discount on bonds payable 18,064 - - - 18,064 Total Long-Term Liabilities 3,649,731 - - - 3,649,731 Total Liabilities 4,332,970 102,515 - 462,493 4,897,978 Net Assets Restricted for debt service - 1,537,458 3,050,118 5,861,530 10,449,106 Unrestricted 44,265,216 - - - 44,265,216 Total Net Assets 44,265,216 1,537,458 3,050,118 5,861,530 54,714,322 Total Liabilities and Net Assets 48,598,186$ 1,639,973$ 3,050,118$ 6,324,023$ 59,612,300$ Restricted Accounts Liabilities and Net Assets - 127 - CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Changes in Net Assets - Reserved - Restricted Accounts Bond Depreciation, and Bond Improvement Interest Reserve and Extension Totals Increases Intrafund transfers in - accordance with bond ordinance unreserved retained earnings - Operation and Maintenance 1,020,400$ 145,800$ 2,877,200$ 4,043,400$ Transfer from Capital Improvement - - 3,300,000 3,300,000 Investment earnings 39,276 81,239 131,866 252,381 Total Increases 1,059,676 227,039 6,309,066 7,595,781 Decreases Bond principal 799,167 - - 799,167 Bond interest 171,977 - - 171,977 Purchase of capital assets - - 3,993,253 3,993,253 Transfer to Insurance Fund - - 3,300,000 3,300,000 Payment of expense - 260 10,544 10,804 Intrafund transfers to operation and maintenance - 145,800 - 145,800 Total Decreases 971,144 146,060 7,303,797 8,421,001 Net Increase (Decrease) 88,532 80,979 (994,731) (825,220) Net Assets Beginning of year 1,448,926 2,969,139 6,856,261 11,274,326 End of yea 1,537,458$ 3,050,118$ 5,861,530$ 10,449,106$ Year ended February 28, 2006 - 128 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual (With Comparative Totals for the Year Ended February 28, 2005) Prior Year Budget Actual Actual Operating Revenues Charges for services 13,332,100$ 13,475,577$ 12,739,153$ Miscellaneous 300,700 485,859 447,692 Total Operating Revenues 13,632,800 13,961,436 13,186,845 Operating Expenses Excluding Depreciation Administration 676,800 634,737 698,958 Operations Pumping 1,863,000 1,875,494 1,745,290 Filtration 2,066,100 1,822,574 1,665,264 Meter maintenance 301,700 310,591 294,986 Distribution 1,197,100 1,100,542 1,110,097 Other 942,800 951,123 874,507 Total Operating Expenses Excluding Depreciation 7,047,500 6,695,061 6,389,102 Operating Income Before Depreciation 6,585,300 7,266,375 6,797,743 Depreciation - 1,345,848 1,296,208 Operating Income 6,585,300 5,920,527 5,501,535 Nonoperating Revenues (Expenses) Investment income 50,000 167,149 49,387 Interest expense - (171,977) (201,705) Bond expenses and amortization of discount - (1,401) (3,654) Net book value of capital assets disposed - (242,851) (2,643) Total Nonoperating Revenues (Expenses) 50,000 (249,080) (158,615) Income Before Transfers 6,635,300 5,671,447 5,342,920 Transfers In (Out) Transfer In - 3,568,449 1,308,102 Transfer Out (2,615,200) (5,993,600) (3,923,302) (2,615,200) (2,425,151) (2,615,200) Net Income 4,020,100$ 3,246,296 2,727,720 Other Changes in Unreserved Net Assets lntrafund transfers in (out) - net assets - reserved - restricted accounts 1,066,797 (1,328,173) Increase in Unreserved Net Assets 4,313,093 1,399,547 Unreserved Net Assets Beginning of yea 39,952,123 38,552,576 End of yea 44,265,216$ 39,952,123$ Year ended February 28, 2006 - 129 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual (With Comparative Totals for the Year Ended February 28, 2005) Prior Year Budget Actual Actual Charges for Services, Net Water Sales Evanston 6,588,000$ 6,706,643$ 6,559,026$ Skokie 3,247,300 3,018,734 2,802,720 Northwest Water Commission 3,496,800 3,750,200 3,377,407 Total Charges for Services 13,332,100 13,475,577 12,739,153 Miscellaneous Fees and outside work 45,000 78,619 85,788 Fees, merchandise and other 255,700 407,240 361,904 Total Miscellaneous 300,700 485,859 447,692 Total Operating Revenues 13,632,800$ 13,961,436$ 13,186,845$ Year ended February 28, 2006 - 130 - 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 Fleet Services Insurance Totals Current Assets Cash and equivalents 24,718$ 108,707$ 133,425$ Investments - 970,532 970,532 Receivables - other 20,025 - 20,025 Due from other funds 281,650 - 281,650 Inventories 280,977 - 280,977 Total Unrestricted Current Assets 607,370 1,079,239 1,686,609 Capital Assets Cost 19,766,744 - 19,766,744 Accumulated depreciation (12,689,047) - (12,689,047) Total Capital Assets 7,077,697 - 7,077,697 Total Assets 7,685,067 1,079,239 8,764,306 Liabilities and Fund Equity Current Liabilities Vouchers payable 197,621 66,772 264,393 Accrued payroll 23,610 727 24,337 Compensated absences payable 102,575 - 102,575 Claims payable - 862,114 862,114 Due to other funds 985,124 - 985,124 Total Current Liabilities 1,308,930 929,613 2,238,543 Long-Term Liabilities Claims payable - 3,672,000 3,672,000 Total Liabilities 1,308,930 4,601,613 5,910,543 Net Assets (Deficit) Invested in capital assets, net of related debt 7,077,697 - 7,077,697 Unrestricted (701,560) (3,522,374) (4,223,934) Total net assets (deficit) 6,376,137$ (3,522,374)$ 2,853,763$ February 28, 2006 Assets - 131 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets Fleet Services Insurance Totals Operating Revenues Charges for Services General Fund 4,055,400$ 1,900,000$ 5,955,400$ Sewer Fund 242,900 - 242,900 Water Fund 311,000 - 311,000 Motor Vehicle Parking System Fund 105,000 - 105,000 Miscellaneous 21,301 6,360 27,661 Total Operating Revenues 4,735,601 1,906,360 6,641,961 Operating Expenses General support 449,342 - 449,342 Major maintenance 2,498,690 - 2,498,690 Vehicle body maintenance 201,662 - 201,662 General liability claims - 1,571,371 1,571,371 Workers compensation claims - 1,537,442 1,537,442 Other 56,795 161,687 218,482 Total Operating Expenses 3,206,489 3,270,500 6,476,989 Operating Income (Loss) Before Depreciation 1,529,112 (1,364,140) 164,972 Depreciation 1,388,947 - 1,388,947 Operating Income (Loss) 140,165 (1,364,140) (1,223,975) Nonoperating Revenues (Expenses) Investment income - 27,010 27,010 Interest expense (17,138) - (17,138) Gain (loss) on disposition of assets 145,739 - 145,739 Total Nonoperating Revenues (Expenses) 128,601 27,010 155,611 Income (Loss) before Operating Transfers 268,766 (1,337,130) (1,068,364) Transfers In (Out) Water Fund - 3,300,000 3,300,000 Sewer Fund 230,000 - 230,000 General Fund 19,000 - 19,000 Central Business Tax Increment District Fund 51,650 - 51,650 Capital Improvement Fund 105,000 - 105,000 Change in Net Assets 674,416 1,962,870 2,637,286 Total Net Assets (Deficit) - Beginning of Year 5,701,721 (5,485,244) 216,477 Total Net Assets (Deficit)- End of Year 6,376,137$ (3,522,374)$ 2,853,763$ Year ended February 28, 2006 - 132 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Cash Flows Fleet Services Insurance Totals Cash Flows from Operating Activities Receipts from customers and users 4,733,962$ 1,915,966$ 6,649,928$ Receipts from interfund services provided (281,406) - (281,406) Payments to suppliers (2,771,306) (9,853,695) (12,625,001) Payments to employees (445,261) (1,537,201) (1,982,462) Payments for interfund services provided 980,325 (2,135) 978,190 Net Cash Provided By (Used For) Operating Activities 2,216,314 (9,477,065) (7,260,751) Cash Flows from Noncapital Financing Activities Transfers In (Out) Water Fund - 3,300,000 3,300,000 Sewer Fund 230,000 - 230,000 General Fund 19,000 - 19,000 Central Business Tax Increment District Fund 51,650 - 51,650 Capital Improvement Fund 105,000 - 105,000 Net Cash Provided by Noncapital Financing Activities 405,650 3,300,000 3,705,650 Cash Flows from Capital and Related Financing Activities Sale of capital assets 152,196 - 152,196 Acquisition and construction of capital assets (2,313,297) - (2,313,297) Principal paid on general obligation bonds (450,000) - (450,000) Interest paid on general obligation bonds (22,850) - (22,850) Net Cash (Used for) Capital and Related Financing Activities (2,633,951) - (2,633,951) Cash Flows from Investing Activities Proceeds from sales and maturities of investments - 10,300,000 10,300,000 Purchase of investments - (4,227,010) (4,227,010) Interest income - 27,010 27,010 Net Cash Provided by Investing Activities - 6,100,000 6,100,000 Net Decrease in Cash and Equivalents (11,987) (77,065) (89,052) Cash and Equivalents Beginning of year 36,705 185,772 222,477 End of yea 24,718$ 108,707$ 133,425$ Continued Year ended February 28, 2006 - 133 - CITY OF EVANSTON, ILLINOIS Combining Statement of Cash Flows - Continued Internal Service Funds Fleet Services Insurance Totals Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities Operating Income 140,165$ (1,364,140)$ (1,223,975)$ Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation 1,388,947 - 1,388,947 Changes in assets and liabilities Other receivables (1,639) 9,606 7,967 lnterfund receivable (281,406) - (281,406) Inventories (26,543) - (26,543) Compensated absences 2,556 - 2,556 Accrued payroll 1,525 241 1,766 lnterfund payable 980,325 (2,135) 978,190 Vouchers payable 12,384 66,772 79,156 Claims payable - (8,162,670) (8,162,670) Due to other governments - (24,739) (24,739) et Cash Provided By (Used For) Operating Activities 2,216,314$ (9,477,065)$ (7,260,751)$ Year ended February 28, 2006 - 134 - THIS PAGE INTENTIONALLY LEFT BLANK CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS CITY OF EVANSTON, ILLINOIS 2006 2005 Governmental funds capital assets: Land $ 6,556,620 $ 6,556,620 Right of way 18,695,896 18,606,141 Buildings and improvements 78,509,383 76,877,897 Office equipment and furniture 9,534,769 10,629,496 Machinery and equipment 1,173,221 703,123 Library collections 10,192,310 9,929,181 Capitalized leases 664,069 1,190,567 Infrastructure 85,894,840 78,806,398 Construction in progress 41,657,942 9,284,228 Total governmental funds capital assets $ 252,879,050 $ 212,583,651 Investments in governmental funds capital assets by source: Capital Project Funds $ 222,462,024 $ 182,432,795 General and Special Revenue Funds 29,803,502 29,537,332 Gifts / Donation 613,524 613,524 Total governmental funds capital assets $ 252,879,050 $ 212,583,651 - 135 - Capital Assets Used in the Operation of Governmental Funds Comparative Schedules by Source Year ended February 28, 2006 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. The capital asset balances of the internal service funds were $19,766,744 at February 28, 2006 and $18,209,749 at February 28, 2005 and consisted o machinery and equipment. CITY OF EVANSTON, ILLINOIS General management and support $ 5,194,320 $ 5,902,335 $ 8,242,819 $ 309,882 Public safety 99,900 13,452,544 1,226,956 300,606 Public works 951,020 21,464,929 - 346,885 Recreation and cultural opportunities 311,380 37,689,575 64,994 215,848 Total capital assets $ 6,556,620 $ 78,509,383 $ 9,534,769 $ 1,173,221 - 136 - This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. The capital asset balances of the internal service funds were $19,766,744 at February 28, 2006 and $18,209,749 at February 28, 2005 and consisted of machinery and equipment. FUNCTION AND ACTIVITY Land improvements furniture equipment Buildings and equipment and Machinery and Office Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activit Year ended February 28, 2006 $ - $ 18,695,896 $ 180,476 $ - $ - $ 38,525,728 - - 70,719 - - 15,150,725 - - - 79,170,923 41,657,942 143,591,699 10,192,310 - 412,874 6,723,917 - 55,610,898 $ 10,192,310 $ 18,695,896 $ 664,069 $ 85,894,840 $ 41,657,942 $ 252,879,050 - 137 - Infrastructure in progress Total Construction Collections Way leases Library Right of Capitalized CITY OF EVANSTON, ILLINOIS General management and support $ 39,590,585 $ 466,612 $ (1,621,225) $ 38,435,972 Public safety 14,929,354 221,371 - 15,150,725 Public works 104,319,323 39,362,130 - 143,681,453 Recreation and cultural opportunities 53,744,389 2,241,483 (374,972) 55,610,900 Total capital asset $ 212,583,651 $ 42,291,596 $ (1,996,197) $ 252,879,050 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. The capital asset balances of the internal service funds were $19,766,744 at February 28, 2006 and $18,209,749 at February 28, 2005. - 138 - Capital assets FUNCTION AND ACTIVITY March 1, 2005 Additions Deletions February 28, 2006 Capital assets Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity Year ended February 28, 2006 STATISTICAL SECTION (UNAUDITED) CITY OF EVANSTON, ILLINOIS Government-wide Expenses by Function Last Four Fiscal Years 2003 2004 2005 2006 Government Activities General management and support 14,273,641$ 15,791,355$ 14,450,761$ 19,536,566$ Public safety 33,420,019 39,237,180 31,167,640 45,950,611 Public works 13,186,710 13,065,137 14,224,855 14,631,723 Health and human resource development 5,041,428 5,370,262 5,843,522 4,781,198 Recreation and cultural opportunities 16,247,049 17,129,356 18,276,621 19,791,683 Housing and economic development 5,817,651 5,973,494 6,757,476 6,850,300 Interest 4,540,304 4,899,622 5,086,412 5,874,030 Total governmental activities 92,526,802 101,466,406 95,807,287 117,416,111 Business-type Activities Water 11,407,511 8,992,102 8,175,691 8,759,592 Sewer 3,701,739 3,468,096 4,777,494 9,219,174 Maple avenue garage fund 8,543,719 8,964,469 8,781,361 3,096,444 Motor vehicle parking system 2,678,894 3,028,429 3,148,145 2,903,968 Total business-type activities 26,331,863 24,453,096 24,882,691 23,979,178 Total expenses 118,858,665$ 125,919,502$ 120,689,978$ 141,395,289$ Source: City's Comprehensive Annual Financial Reports. Note: The City implemented GASB-34 for the fiscal year ended February 28, 2003. - 139 - CITY OF EVANSTON, ILLINOIS Government-wide Revenues Last Four Fiscal Years 2003 2004 2005 2006 Pro ram revenue Charges for services 53,636,822$ 56,731,361$ 58,870,294$ 62,290,317$ Operating grants and contributions 3,006,468 3,479,547 3,713,201 3,440,889 Capital grants and contributions 1,962,713 1,458,824 212,000 1,126,610 General revenue Property, replacement, and other taxes 71,935,463 76,274,482 80,059,394 89,810,392 Motor fuel tax 2,116,330 - - - * Special assessments 208,002 - - - * Gain on sale of capital assets 174,825 93,223 53,605 68,950 Miscellaneous 2,131,077 2,003,696 4,942,465 1,343,049 Investment income 1,698,323 2,054,006 1,928,258 3,893,050 Total revenue 136,870,023$ 142,095,139$ 149,779,217$ 161,973,257$ * Included in program revenues starting in fiscal 2004 Source: City's Comprehensive Annual Financial Reports. Note: The City implemented GASB-34 for the fiscal year ended February 28, 2003. - 140 - THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS General Governmental Revenues - By Source (City Funds) Last Ten Fiscal Years 1997 1998 1999 2000 Taxes 47,377,295$ 49,253,561$ 51,219,538$ 56,526,013$ Licenses and permits 3,935,179 4,394,035 4,186,623 5,333,590 Intergovernmental 4,420,780 5,773,857 5,593,385 6,250,303 Charges for services 4,012,343 4,030,003 4,997,650 4,859,680 Fines and forfeits 1,902,396 2,763,919 2,830,747 2,624,768 Investment income 803,826 930,876 832,176 1,178,473 Miscellaneous 3,305,452 3,642,998 3,586,765 4,103,998 65,757,271$ 70,789,249$ 73,246,884$ 80,876,825$ Note: Includes General, Special Revenue and Debt Service Funds - 141 - 2001 2002 2003 2004 2005 2006 61,553,222$ 62,319,808$ 52,545,639$ 56,923,353$ 59,026,698$ 66,633,680$ 6,436,357 7,404,986 6,459,186 6,699,058 6,773,407 9,164,065 5,448,577 5,859,079 18,291,511 18,004,581 21,519,882 20,482,482 5,491,544 5,514,980 6,261,930 5,996,802 6,052,956 6,904,796 2,782,303 3,241,930 3,742,055 4,162,610 3,999,105 3,781,020 1,909,097 1,442,953 690,001 953,816 698,922 1,706,055 4,127,182 3,631,267 5,995,219 4,714,224 8,156,295 4,604,547 87,748,282$ 89,415,004$ 93,985,541$ 97,454,444$ 106,227,265$ 113,276,645$ - 142 - CITY OF EVANSTON, ILLINOIS General Governmental Expenditures - By Function/Program (City Funds) Last Ten Fiscal Years 1997 1998 1999 2000 General management and support services 6,009,344$ 6,200,320$ 7,212,004$ 8,260,083$ Public Safety 19,493,788 21,239,535 22,181,724 22,504,948 Public Works 9,771,057 9,615,973 10,434,066 12,677,399 Health and human resource development 3,632,846 3,991,174 4,211,702 4,341,946 Recreation and cultural opportunities 9,624,646 9,939,803 10,590,037 11,729,639 Housing and economic development 4,534,206 6,320,413 5,336,215 7,013,119 Pension / IMRF 3,865,286 3,811,861 3,938,842 3,858,622 Debt servic 18,486,089 15,791,760 12,187,953 10,717,903 75,417,262$ 76,910,839$ 76,092,543$ 81,103,659$ Note: Includes General, Special Revenue and Debt Service Funds - 143 - 2001 2002 2003 2004 2005 2006 8,909,240$ 11,965,898$ 11,293,648$ 11,815,342$ 13,156,536$ 14,365,437$ 23,927,733 25,454,153 26,875,820 28,008,431 29,707,010 31,163,795 12,211,887 11,655,007 10,847,474 11,118,899 12,070,461 13,242,104 4,743,728 4,620,954 4,839,565 5,272,090 5,800,662 4,565,684 12,107,322 13,028,036 13,422,959 14,251,886 15,493,468 16,525,586 5,619,661 6,292,771 5,661,898 5,882,117 6,717,231 6,645,635 3,926,955 4,090,630 4,209,396 2,687,984 1,371,992 4,627,930 11,095,141 10,639,365 11,224,087 14,548,084 12,912,536 13,546,892 82,541,667$ 87,746,814$ 88,374,847$ 93,584,833$ 97,229,896$ 104,683,063$ - 144 - CITY OF EVANSTON, ILLINOIS Schedule of Insurance in Force $10,000,000 coverage in excess of $2,000,000 per occurrence (first $2,000,000 is City's portion) 6501691 3/01/06 - 3/01/07 Excess Liability $5,000,000 coverage in excess of $10,000,000 er occurrence Excess Liability - 145 - Illinois National Insurance Co. 76062798 3/01/06 - 3/01/07 Lexington Insurance Co. National Union Fire Ins. Co. (AIG) 006260954 3/01/06 - 3/01/07 Crime Policy Western World Insurance NPP970824 3/01/06 - 3/01/07 3/01/06 -3/01/07 Specific excess coverage in excess of $500,000 er occurrence Hartford Insurance Co. 83MSRZ3857 March 1, 2006 Policy Policy Safety National Casualty Corp. SP8724-IL 3/01/06 -3/01/07 Excess Workers' Com ensation Name of Company FM Global FC359 3/01/06 - 3/01/07 Number Dates Theft of cash in excess of $25,000 deductible, to limit of $2,000,000 Actual cash value per Statement o Values each loss/each location in excess of $75,000 deductible Type of DetailsCoverage Fine Arts - Noyes, Levy Center and Fleetwood/Jourdain Theaters All - Risk Property (includes business interruption, loss of rents, and fine arts) Ambulance/Paramedic Liabilit $1,000,000 per occurrence; $1,000,000 a re ate Per Statement of Values in excess of $250 deductible limits of different levels at each property CITY OF EVANSTON, ILLINOIS Property Tax Rates Last Ten Levy Years Tax Levy Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 General Corporate 1.1649 1.1161 1.0918 0.9801 1.0231 1.0872 0.8646 0.8554 0.8977 0.7685 Debt Service 0.5308 0.5417 0.5946 0.5443 0.5574 0.5743 0.4467 0.4404 0.4494 0.4025 1.6957 1.6578 1.6864 1.5244 1.5805 1.6615 1.3113 1.2958 1.3471 1.1710 Police Pension 0.2111 0.2154 0.2138 0.2062 0.2021 0.2088 0.1819 0.1812 0.1981 0.1991 Firefighters' Pension 0.1774 0.1855 0.1681 0.1566 0.1505 0.1626 0.1348 0.1321 0.1520 0.1573 Total All Funds 2.0842 2.0587 2.0683 1.8872 1.9331 2.0329 1.6280 1.6091 1.6972 1.5274 Actual Rate Extended 2.085 2.059 2.069 1.888 1.934 2.033 1.628 1.610 1.698 1.528 *2005 property tax rates were not available at publication of this report. Fund - 146 - CITY OF EVANSTON, ILLINOIS Property Tax Levies and Collections (City) Last Ten Levy Years Total Outstanding Current Delinquent Total Collections and Tax Tax Tax as Percent Delinquent Collections Collections Collections of Levy Taxes 23,390,347$ 284,877$ 23,675,224$ 99.66%81,919$ 23,234,806 404,013 23,638,819 99.50%118,325 23,223,913 544,880 23,768,793 100.05%(11,761) 24,468,693 425,270 24,893,963 99.03%243,389 25,319,911 421,153 25,741,064 98.18%476,582 25,391,349 442,216 25,833,565 98.21%471,762 27,286,591 254,154 27,540,745 98.51%416,381 28,565,408 365,801 28,931,209 97.04%882,578 30,991,234 412,246 31,403,480 97.83%697,177 4,851,401 - 4,851,401 14.52%28,571,910 Notes: (1) In Illinois, general property taxes are billed and payable in the first year following the levy year. (2) Does not include tax levy for Special Service District debt, Central Business Tax Increment District debt, Howard Hartrey Tax Increment District debt, Southwest Tax Increment District debt, or Washington National Tax Increment District debt. 2004 32,100,657 96.54% 2.17% 0.97%97.34% 29,813,787 95.81% 2.96% 1.49%97.60%2002 26,305,327 23,757,144 23,757,032 1997 0.34% 97.76% 0.50% 98.46% 97.80% -0.05% Levy 1999 Total Tax LevyYear 25,137,352 23,757,143$ 1998 1996 of Levy Taxes as Collected Percent of Current Levy Outstanding (1) Tax (2) and Delinquent Percent 2003 - 147 - 2000 2001 26,217,646 96.58% 1.82% 96.53% 1.79% 27,957,126 2005 33,423,311 14.52% 85.48% CITY OF EVANSTON, ILLINOIS Analysis of City Government Tax Levies Last Ten Levy Years Tax Levy Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Fund General Corporate 12,879,799$ 12,540,792$ 12,320,265$ 13,304,293$ 13,986,844$ 13,970,507$ 14,862,246$ 15,504,388$ 16,105,714$ 17,040,816$ Debt Service 6,250,681 6,829,848 6,875,709 7,248,097 7,452,297 7,218,006 7,650,862 8,263,107 8,593,632 8,915,268 19,130,480 19,370,640 19,195,974 20,552,390 21,439,141 21,188,513 22,513,108 23,767,495 24,699,346 25,956,084 Police Pension 2,486,082 2,455,583 2,592,476 2,627,920 2,686,300 2,939,263 3,147,859 3,420,846 4,171,429 4,171,429 Firefighters Pension 2,140,581 1,930,921 1,968,582 1,957,042 2,092,205 2,177,551 2,296,159 2,625,446 3,229,882 3,295,798 23,757,143$ 23,757,144$ 23,757,032$ 25,137,352$ 26,217,646$ 26,305,327$ 27,957,126$ 29,813,787$ 32,100,657$ 33,423,311$ Note: Schedule does not include Central Business Tax Increment District debt, Howard Hartrey Tax Increment District debt, Southwest Tax Increment District debt, or Washington National Tax Increment District debt. - 148 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 City of Evanston 2.085 2.059 2.069 1.888 1.934 2.033 1.628 1.610 1.698 1.528 Consolidated Elections - - 0.027 - 0.023 - 0.032 - 0.029 - Cook County 1.023 0.989 0.919 0.911 0.854 0.824 0.746 0.690 0.630 0.593 Cook County Forest Preserve District 0.072 0.074 0.074 0.072 0.070 0.069 0.067 0.061 0.059 0.060 Suburban T.B. Sanitarium 0.008 0.008 0.008 0.008 0.008 0.008 0.007 0.006 0.004 0.001 Metropolitan Water Reclamation District 0.495 0.492 0.451 0.444 0.419 0.415 0.401 0.371 0.361 0.347 North Shore Mosquito Abatement District 0.011 0.011 0.011 0.011 0.011 0.011 0.010 0.009 0.009 0.008 Evanston Township 0.077 0.076 0.077 0.072 0.072 0.077 0.064 0.062 0.065 0.056 Community College 535 0.233 0.206 0.216 0.205 0.203 0.213 0.186 0.179 0.186 0.161 School District 202 2.946 2.992 3.107 2.905 2.865 2.977 2.469 2.349 2.444 2.078 School District 65 4.245 4.209 4.356 4.126 4.073 4.232 3.516 3.343 3.475 2.978 Total tax rate for property not in park district or special service district 11.195 11.116 11.315 10.642 10.532 10.859 9.126 8.680 8.960 7.810 Percent of total tax rate levied by City of Evansto 18.6% 18.5% 18.3% 17.7% 18.4% 18.7% 17.8% 18.5% 19.0% 19.6% *2005 property tax rates were not available at publication of this report. Government Unit - 149 - CITY OF EVANSTON, ILLINOIS Equalized Assessed Valuation of Taxable Property Last Ten Levy Years Real Railroad Total Equalization Property Property Assessment Factor 1,139,714,098 153,640 1,139,867,738 2.1243 1,153,575,794 356,179 1,153,931,973 2.1517 1,148,286,831 317,786 1,148,604,617 2.1489 1,256,699,519 296,665 1,256,996,184 2.1799 1,300,085,710 286,492 1,300,372,202 2.2505 1,286,161,490 298,315 1,286,459,805 2.2235 1,615,527,795 311,382 1,615,839,177 2.3098 1,737,175,732 368,172 1,737,543,904 2.4689 1,726,750,429 397,456 1,727,147,885 2.4598 2,095,165,000 446,570 2,095,611,570 2.5757 Notes: (1) Equalized assessed value is based on approximately 33% of estimated actual value. (2) Equalized assessed values do not include tax increment financing district incremental assessed values. (3) Equalized assessed values and equalization factor for the levy year 2005 were not available at publication of this report. 2002 - 150 - 2003 2004 1998 Tax Levy Year 1997 1995 1996 2000 1999 2001 CITY OF EVANSTON, ILLINOIS Special Assessment Billings and Collections Last Ten Levy Years Total Total Collections Outstanding Including Current, Total Prepayments and Delinquent, Current Delinquent and Future Installments Collections Assessments 151,737$ 188,358$ 357,058$ 195,698 227,311 582,145 221,200 224,406 755,760 202,662 275,867 742,605 208,794 214,344 765,015 224,764 258,313 737,273 220,564 208,002 684,523 207,711 216,740 1,014,798 261,711 365,554 649,243 242,900 545,655 769,274 2001 2005 2002 - 151 - 2003 2006 2004 1998 1997 Levy Tax Year 1999 2000 CITY OF EVANSTON, ILLINOIS Ratio of Net General Obligation Bonded Debt to Equalized Assessed Valuation and Net General Obligation Debt Per Capita (City) (3) Net (1) Debt Debt Net Debt to Equalized Service Payable General Equalized Assessed Monies From Other Obligation Assessed Valuation Available Revenues Debt Valuation 1,153,931,973 4,199,858$ 62,575,000$ 56,800,093$ 4.92% 1,148,604,617 4,039,098 62,085,000 62,784,777 5.47% 1,256,996,184 4,178,055 68,025,000 58,773,697 4.68% 1,300,372,202 4,182,913 64,175,000 60,623,847 4.66% 1,286,459,805 4,562,562 91,710,000 60,683,167 4.72% 1,615,839,177 5,193,168 86,835,000 55,804,420 3.45% 1,710,663,113 6,942,441 123,720,000 63,424,290 3.71% 1,737,543,904 6,592,437 114,445,000 70,035,897 4.03% 1,727,147,885 6,678,359 106,935,000 73,496,641 4.26% 2,095,611,570 (4)6,551,304 110,212,500 79,111,196 3.78% Notes: Equalized assessed values do not include tax increment financing district incremental equalized assessed values. 187,110,000 990.00 943.38 2000 2003 74,239 194,086,731 854.33 74,239 2002 (4)Equalized assessed values for fiscal year ending 2005 were not available at publication of this report; therefore, fiscal year ending 2004 values are used. - 152 - 817.40 74,239 147,832,588 751.69 74,239 156,955,729 73,233 128,981,760 Net General Obligation Debt Bonded Per Capita 802.56 827.82 1997 Debt Obligation (2) Bonded Gross Population 2001 128,908,875 130,976,752 2006 1999 73,233 2004 74,239 191,073,334 2005 Ended 857.33 123,574,951$ 775.61 73,233 1998 73,233 Last Ten Fiscal Years General Fiscal Year 74,239 195,875,000 1,065.63 (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. (2) (1) 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. CITY OF EVANSTON, ILLINOIS Schedule of Direct and Overlapping Debt (City) Percentage of Debt City of Applicable Evanston's Total to City of Share of Debt Outstanding Evanston (1) Direct debt - bonds, notes, and contracts outstanding (2) 79,111,196$ 100.000% 79,111,196$ Other bonded debt County of Cook 3,199,185,000 (3) 1.653% 52,875,314 Metropolitan Water Reclamation District 1,256,985,306 (4) 1.689% 21,232,996 High School District 202 14,396,049 (4) 89.919% 12,944,726 School District 65 37,795,000 89.919% 33,984,735 Skokie Park District 22,043,563 (5) 0.676% 149,059 Total Overlapping Debt 4,530,404,918 121,186,831 Total Direct and Overlapping Debt 4,609,516,114$ 200,298,027$ Notes: City of Evanston's share based upon 2004 real property valuations. (2) Excludes General Obligation Notes issued in lieu of tax anticipation warrants and notes issued to provide interim construction financing. Excludes general obligation bonds reported in the enterprise and internal service funds, general obligation notes payable under line of credit with Northwestern University, and Special Service District No. 5 unlimited ad valorem tax bonds. (5) February 28, 2006 - 153 - (1) Excludes $28,884,163 General Obligation bonds issued pursuant to Section 15 of the Local Government Debt Reform Act ("Alternate Bonds"). (3) (4) Includes Cook County Forest Preserve District debt. CITY OF EVANSTON, ILLINOIS Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures (City) Last Ten Fiscal Years (3) Ratio of (1) (2) Total Debt Service Interest Total General to General and Paying Debt Governmental Governmental Principal Agent Fees Service Expenditures Expenditures 5,203,536$ (3) 4,194,072$ 9,397,608$ 75,417,262$ 12.46% 5,933,536 (3) 3,960,368 9,893,904 (2) 76,910,839 12.86% 5,580,868 (3) 4,490,869 10,071,737 76,092,543 13.24% 6,008,333 4,262,359 10,270,692 (2) 81,103,659 12.66% 6,140,000 4,512,807 10,652,807 82,541,667 12.91% 6,105,000 4,092,174 10,197,174 87,746,814 11.62% 6,465,000 4,713,831 11,178,831 88,374,847 12.65% 9,165,000 5,010,117 14,175,117 93,584,833 15.15% 7,645,000 4,831,383 12,476,383 97,229,896 12.83% 7,435,000 5,673,144 13,108,144 104,683,063 12.52% Notes: Excludes interest paid by escrow agent. Net of bond proceeds paid to escrow agent to advance refund general obligation bonds. Excludes principal payments made upon maturity of certain Series 1993 Bond Anticipation Bonds. 2006 2002 2003 2004 2005 Ended 2000 2001 1997 1998 1999 Fiscal Year (2) (1) - 154 - (3) CITY OF EVANSTON, ILLINOIS Legal Debt Margin Information To date, the General Assembly has not set debt limits for home rule municipalities. The City Council’s currently approved budget policy includes the following provision: The principal amount of general obligation debt, which is to be paid through property taxes, shall not at any one time exceed one hundred-ten million dollars ($110,000,000). As of February 28, 2006, the amount of direct debt of the City appearing in the direct and overlapping debt statistical table is $79,111,196. This amount includes certain outstanding general obligation debt to be retired in future years with nonproperty tax revenue resources. Taking into account the nonproperty tax revenue, the outstanding debt is within the budget policy guidelines. - 155 - The City is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property… (2) If its population is more than 25,000 and less than 500,000, an aggregate of one percent;… Indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum … shall not be included in the foregoing ercenta e amounts.” CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Revenue Bond Coverage Net (1) Revenue Direct Available Gross Operating for Debt (2) Revenue Expenses Service Principal Interest Total Coverage 12,134,432$ 5,128,622$ 7,005,810$ 1,485,833$ 1,067,950$ 2,553,783$ 2.74x 12,113,182 5,669,524 6,443,658 1,613,334 941,293 2,554,627 2.52x 13,192,965 5,416,366 7,776,599 1,907,500 639,234 2,546,734 3.05x 13,709,645 5,602,297 8,107,348 2,170,000 666,466 2,836,466 2.86x 13,509,413 5,430,908 8,078,505 2,245,000 589,559 2,834,559 2.85x 13,005,269 5,670,480 7,334,789 2,325,000 494,210 2,819,210 2.60x 13,687,288 9,347,238 4,340,050 2,200,000 343,795 2,543,795 1.71x 13,583,515 7,056,290 6,527,225 805,000 235,913 1,040,913 6.27x 13,338,642 6,395,231 6,943,411 805,000 206,575 1,011,575 6.86x 14,380,966 6,705,865 7,675,101 865,000 177,355 1,042,355 7.36x Notes: Excludes depreciation and amortization. Excludes interest paid by escrow agent.(2) - 156 - (1) 2001 2002 2003 2004 2006 Last Ten Fiscal Years 1998 1999 2005 1997 2000 Fiscal Year Ended Debt Service Requirements CITY OF EVANSTON, ILLINOIS Water Fund Water Revenues by Area Northwest Water Evanston Skokie Commission Total 6,774,380$ 2,908,102$ 3,367,773$ 13,050,255$ 6,811,100 2,918,766 3,283,048 13,012,914 6,606,091 2,859,685 3,247,291 12,713,067 6,711,004 3,011,018 3,434,685 13,156,707 6,665,158 2,959,732 3,367,253 12,992,143 6,559,026 2,802,720 3,377,407 12,739,153 6,706,643 3,018,734 3,750,200 13,475,577 - 157 - Last Seven Fiscal Years Fiscal Schedule of Operating Revenues 2000 2001 2002 Year Ended 2003 2004 2005 2006 CITY OF EVANSTON, ILLINOIS Water Fund Water Pumpage by Area Northwest Water Evanston Skokie Commission Total 3,717.30 3,891.25 9,830.50 17,439.05 3,441.92 3,793.56 9,392.41 16,627.89 3,443.72 3,643.84 9,119.18 16,206.74 3,428.94 3,761.22 9,448.57 16,638.73 3,448.09 3,624.90 9,079.86 16,152.85 3,200.43 3,365.42 8,928.10 15,493.94 3,303.76 3,544.78 9,724.17 16,572.71 - 158 - Last Seven Fiscal Years Fiscal Year Ended 2004 2005 2000 2001 Pumpage to Distribution System (Millions of Gallons) 2002 2003 2006 CITY OF EVANSTON, ILLINOIS Water Fund Ten Largest Water Customers Cubic Feet of Rank Name Water Used 1 Northwestern University 39,795,500 2 Evanston Hospital 9,898,200 3 St. Francis Hospital 6,796,200 4 Presbyterian Homes 6,306,400 5 District 202, ETHS 3,790,600 6 Mather Lifeways 2,884,400 7 Albany House 2,582,700 8 North Shore Hotel 2,517,000 9 District 65 Schools 2,221,600 10 Best Western Hotel 1,202,600 Ten Largest Water Customers (2005) - 159 - CITY OF EVANSTON, ILLINOIS Water Fund Water Allocations and Use - Projected 2000 2005 2010 2015 2020 City of Evanston 9.941 10.070 10.199 10.328 10.453 Village of Skokie 10.950 11.073 11.196 11.319 11.433 Total Original Service Area 20.891 21.143 21.395 21.647 21.886 Village of Arlington Heights 9.667 9.809 9.951 10.093 10.244 Village of Palatine 8.009 8.645 9.281 9.917 10.598 Village of Buffalo Grove 4.922 5.489 6.079 6.098 6.180 Village of Wheeling 4.540 4.710 4.880 4.975 5.070 Total New Service Area ( The Commission) 27.138 28.653 30.191 31.083 32.092 Combined Total 48.029 49.796 51.586 52.730 53.978 Accounting Years Ending September 30 WATER ALLOCATIONS - - USERS OF EVANSTON WATER SYSTEM (Million Gallons Per Day - - Accounting Years Ending September 30) - 160 - CITY OF EVANSTON, ILLINOIS Demographic Statistics (4) Education (2) Level in Per (3) Years of (5) (6) (1) Capita Median Formal School Unemployment Population Income Age Schooling Enrollment Percentage 73,233 28,117$ 31.9 13.6 9,556 3.90% 73,233 28,740 31.9 13.6 9,764 3.70% 73,233 29,372 31.9 13.6 9,433 3.60% 73,233 30,068 31.9 13.6 10,068 3.50% 74,239 30,068 31.9 13.6 9,999 4.20% 74,239 33,645 32.5 13.6 10,889 5.00% 74,239 36,296 32.5 13.6 9,766 5.40% 74,239 36,296 32.5 13.6 9,849 5.00% 74,239 37,384 32.5 13.6 9,740 5.00% 74,239 39,103 32.5 13.6 9,550 4.50% Data Sources U.S. Department of Commerce, Bureau of Economic Analysis based on the national average. (5) 2001 2002 Evanston school boards - Districts #65 and #202 combined, based on enrollment figures as of September 30 of the previous year. 2003 2004 (2) 2006 2005 1999 - 161 - Illinois Department of Labor, Research Division. Figures are for Evanston only and represent average annual unemployment rate for previous calendar year. U.S. Department of Commerce, Bureau of the Census, 2000 census. (6) (4) U.S. Department of Commerce, Bureau of the Census, 2000 census. U.S. Department of Commerce, Bureau of the Census, 2000 census. (1) (3) Last Ten Fiscal Years 2000 Fiscal Year Ended 1998 1997 CITY OF EVANSTON, ILLINOIS Construction Value and Property Value (1) (2) Construction Property Value Value 106,310,738$ 3,462,000,000 107,237,350 3,446,000,000 98,163,935 3,771,000,000 176,684,000 3,901,000,000 193,951,036 3,901,000,000 269,726,073 3,998,000,000 132,905,871 4,848,000,000 124,772,892 5,200,000,000 237,211,198 5,181,000,000 240,769,623 6,287,000,000 Data Sources Ended 1997 - 162 - 2000 (2) 2001 2002 (1) 2003 Estimated actual value. 2006 Last Ten Fiscal Years City of Evanston building department 1999 2005 2004 1998 Year Fiscal CITY OF EVANSTON, ILLINOIS Principal Taxpayers (1) Percentage Equalized of Total Assessed Assessed Type of Business Valuation Valuation Bank One/Office Building 27,694,704$ 1.32% Office building - 18 story 20,292,050 0.97% REP CBRE Office building - Church & Davis 19,828,403 0.95% Church Street Plaza Shopping Center 16,896,273 0.81% Chicago Avenue Condo Building 14,968,168 0.71% Hotel 13,091,516 0.62% Grocery & Drug Stores 12,711,074 0.61% Shopping Center 12,539,427 0.60% Hotel 11,654,424 0.56% Commercial buildings over three stories, two or three story apartments, one story store, and parking lot. 158,474,156$ 7.56% Note: 0.42%St. Francis Hospital 8,798,117 - 163 - (1)2004 equalized assessed valuation from Cook County Clerk and Assessor's Office Omni Orrington Hotel Evanston Hotel Evanston Plaza Freed Total Ten Largest Taxpayer Albertson's (Jewel & Osco) Church & Chicago LTD. Partnership Ten Largest Taxpayers Taxpayers Rotary International Golub & Company CITY OF EVANSTON, ILLINOIS Miscellanous Statistics February 28, 2006 Date of Incorporation 1863 Form of Government Council - Manager Geographic Location On Lake Michigan Immediately north of Chicago Area 8.513 Square Miles Population 1900 19,259 1910 24,978 1920 37,234 1930 63,338 1940 65,389 1950 73,461 1955 74,959 1960 79,283 1970 80,113 1980 73,706 1990 73,233 2000 74,239 Number of Housing Units (2000 Census) 30,817 Per Capita Income $39,103 Annual Gross Retail Sales 2005/06 $867,952,900 Municipal Services and Facilities Number of Full-Time Employees 891 Miles of Streets 147 Miles of Alleys 76 Miles of Sewers 169 Number of Street Lights 5,641 Value of Construction Authorized in 2005/2006 $240,769,623 Continued - 164 - CITY OF EVANSTON, ILLINOIS Miscellanous Statistics - Continued February 28, 2006 Fire Protection Number of Firefighters 107 Number of Other Employees 2 Number of Stations 5 Number of Fire Hydrants 1,236 I.S.O. Rating Class 3 Police Protection Number of Police Officers 159 Number of School Crossing Guards 38 Number of Parking Enforcement Officers 16 Number of Other Employees 49 Library Services Number of Branch Libraries 2 Number of Books and Other Materials 505,791 Number of Registered Borrowers 51,676 Loan of Library Materials - 2004/2005 893,841 Recreation Facilities Number of Parks and Playgrounds 80 Park Area in Acres 289.6 Number of Beaches 5 Municipal Parking Utility Number of Parking Meters on Streets 1,619 Number of Parking Lots 44 Capacity of Parking Lots 3,404 Metered Spaces 730 Space Rentals and Free Spaces 2,615 Capacity of Parking Garages 2,000 Municipal Water Utility Population Serviced Northwest Water Commission 221,364 Evanston 74,360 Skokie 63,633 Filtration Plant Rated Daily Capacity (gallons) 108,000,000 Rated Daily Pumping Capacity (gallons) 147,000,000 Average Daily Pumpage (gallons) 2004/2005 45,573,000 Maximum Daily Pumpage (gallons) 2004/2005 80,457,000 Miles of Water Mains 157.590 - 165 - TAX INCREMENT FINANCING DISTRICT REQUIREMENTS