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HomeMy WebLinkAbout2004-2005 Annual Comprehensive Financial Report ILLINOIS Comprehensive Annual Financial Report For the Fiscal Year Ended February 28, 2005 CITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED FEBRUARY 28, 2005 Prepared by Finance Department William A. Stafford 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 10 Statement of Activities 12 Balance Sheet - Governmental Funds 14 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds 15 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 16 Proprietary Funds Statement of Net Assets 17 Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 19 Proprietary Funds Statement of Cash Flows 20 Fiduciary Funds Statement of Net Assets 22 Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets 23 Notes to the Financial Statements Index for Notes to the Financial Statements 24 Notes to the Financial Statements 27 REQUIRED SUPPLEMENTARY INFORMATION Firefighters Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund - Schedules of Funding Progress 84 Firefighters and Police Pension Funds - Schedules of Employer Contribution 85 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 86 Notes to the Required Supplementary Information Firefighters and Police Pension Funds 87 INTRODUCTORY SECTION FINANCIAL SECTION i CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Notes to the Required Supplementary Information Digest of Changes - IMRF 87 Excess of Actual Expenditures over Budget in Individual Funds 87 GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 88 onmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 93 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 97 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 104 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 106 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 107 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 108 Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 109 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 110 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 111 Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 114 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 115 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 116 DEBT SERVICE FUNDS All Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) 117 PROPRIETARY FUND TYPES WATER FUND Schedule of Net Assets 119 Schedule of Changes in Net Assets - Reserved - Restricted Accounts 121 Operations and Maintenance Account - Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual 122 Operations and Maintenance Account - Schedule of Operating Revenues Budget and Actual 123 INTERNAL SERVICE FUNDS All Funds Schedule of Net Assets 124 Combining Schedule of Revenues, Expenses, and Changes in Net Assets 125 Combining Schedule of Cash Flows 126 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Comparative Schedules by Source 128 Schedule by Function and Activity 129 Schedule of Changes by Function and Activity 131 iii COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSETS STATEMENTS AND SCHEDULES (Continued) CITY OF EVANSTON, ILLINOIS Table of Contents PAGE 132 133 134 136 Schedule of Insurance in Force 138 Property Tax Rates - Last Ten Levy Years 139 Property Tax Levies and Collections (City) - Last Ten Levy Years 140 Analysis of City Government Tax Levies - Last Ten Levy Years 141 Property Tax Rates per $100 - Direct and Overlapping Governments - Last Ten Levy Years 142 Equalized Assessed Valuation of Taxable Property - Last Ten Levy Years 143 Special Assessment Billings and Collections - Last Ten Levy Years 144 Ratio of Net General Obligation Bonded Debt to Equalized Assessed Valuation and Net General Obligation Debt Per Capita (City) - Last Ten Fiscal Years 145 Schedule of Direct and Overlapping Debt (City) 146 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures (City) - Last Ten Fiscal Years 147 Legal Debt Margin Information 148 Water Fund - Schedule of Revenue Bond Coverage - Last Ten Fiscal Years 149 Water Fund Revenues by Area - Last Seven Fiscal Years 150 Water Fund Pumpage by Area - Last Seven Fiscal Years 151 Water Fund - Ten Largest Water Customers 152 Water Fund - Water Allocations and Use 153 Demographic Statistics - Last Ten Fiscal Years 154 Construction Value and Property Value - Last Ten Fiscal Years 155 Principal Taxpayers - Ten Largest Taxpayers 156 Miscellaneous Statistics 157 Independent Accountants' Report on Compliance - Tax Increment Financing Districts 159 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, 2005 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 Julia A.Carroll, City Manager FINANCE DEPARTMENT William A. Stafford, Finance Director and Comptroller Barbara V. Zdanowicz, Assistant Finance Director Bobbie Tolston-Brown, Director of Purchasing and Contracts Mary Rodino Kutz, Accounting Manager Patricia P. Ford, Payroll Manager v Kevin Lookis, Revenue Manager 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, 2005 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, 2005 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. The City has implemented GASB Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments”, including infrastructure reporting. 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, 2005, 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, 2005, 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; apartment, condominium, and student housing; its residents are commuters and locally employed workers; the 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 present City limits, encompassing an area of approximately 8.5 square miles, have been essentially the same ever since. The City has four miles of shoreline along Lake Michigan. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org ix 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 (three Saturday morning public hearings were held prior to adoption of the 2005/06 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 2005/2006, the City projects 47.1% ($82.7 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, Sewer Fund and Maple Avenue Garage Fund. The Enterprise Funds (water and sewer) are operated and budgeted on a full accrual basis. Expenditures are recognized when a commitment is made (through a purchase order), and revenues are recognized when they are obligated to the City (for example, water user fees are recognized as revenue when bills are produced). Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board. The accounts of the City are divided into separate self-balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.328 4080 www.cityofevanston.org xi 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’s downtown area has been undergoing major revitalization in recent years, with the active support of the City. The downtown area has become significantly more vital, with its mix of new and existing restaurants, offices, hotels, theaters, and shops. The final phase of the Downtown II TIF district has been completed with the finishing of the 207 unit Optima Views 20 plus - story condominium building. This represents a $45 million increase in the equalized assessed valuation of the property in this district since 1997. Optima Horizons is an additional Downtown II condominium development of 248 units and a garage. The garage is open and the condominiums are completed. • The Sherman Plaza redevelopment is under full construction as of the date of this letter and will include a new City-owned 1,500 space parking garage on Sherman Avenue, 160,000 square feet of retail space and 229 condominium units in a 24-story tower. The garage is financed by the City’s general obligation bonds. • The City is in the final construction phase of a $190 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. • Between 1997 and 2003, the number of major crime reported in Evanston fell by 53%. This current level continues to reflect the lowest crimes levels in over 30 years. 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. Sales tax for the fiscal year FY 2005 increased 1.7% which is similar to the increases experienced by many Chicagoland area municipalities. 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 and a budget process that projects future operating budgets. 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 and safety training. The City has also settled the majority of its largest outstanding lawsuits during the last five months. 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 - 3 - The City of Evanston (the City) discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on page vii of this report. FINANCIAL HIGHLIGHTS • The City’s net assets increased by $29,089,239 (or 14.97%) for the fiscal year reported (FY 2005). The governmental net assets increased by $19,723,512 (or 34.89% from FY 2004) and the business-type activities net assets increased by $9,365,727 (or 6.8% from FY 2004). • The governmental activities revenue increased by $8,466,474 (or 7.82%). The expenditures decreased by $5,659,119 (or 5.58%). • The business-type activities revenue decreased by $782,396 (or 2.32%). The expenditures increased by $429,595 (or 1.76%). • The total cost of all City programs decreased by $5,229,524 or 4.15%. • The City of Evanston issued new debt in the amount of $25,085,000 during the current fiscal year. Of this, $13,355,000 will be used to pay for capital improvements out of the Capital Improvements Fund. USING THIS ANNUAL REPORT The financial statement’s focus is on both the City as a whole (government–wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison and enhance the City’s accountability. The City’s financial reporting includes the funds of the City (primary government) and, additionally, organizations for which the City is accountable (component units – the Township). The Evanston Township Board of Trustees are the same individuals as the City Council members. The Township is blended into the primary government for financial reporting purposes. REPORTING THE CITY AS A WHOLE Government-wide Financial Statements The City’s annual report includes two government-wide financial statements. These statements provide both long- term and short-term information about the City’s overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The first of these government-wide statements is the Statement of Net Assets. This is the City-wide statement of financial position presenting information that includes all of 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 MANAGEMENT’S DISCUSSION AND ANALYSIS FEBRUARY 28, 2005 - 4 - would extend to other non-financial factors such as diversification of the taxpayer base or the condition of City infrastructure, in addition to the financial information provided in this report. The second government-wide statement is the Statement of Activities which reports how the City’s net assets changed during the current fiscal year. All current year revenues and expenses are included regardless of when the cash is received or paid. An important purpose of the design of the statement of activities is to show the financial reliance of the City’s distinct activities or functions on revenues provided by the City’s taxpayers. Both government-wide financial statements distinguish governmental activities of the City that are principally supported by taxes and intergovernmental revenues, such as grants, from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activities include general government, public safety, public services, fleet services, insurance fund, and culture and recreation. Business-type activities include water and sewer utilities, parking, and garages. Fiduciary activities, such as employee pension plans and agency funds, are not included in the government-wide statements since these assets are not available to fund City programs. The government-wide financial statements are presented on pages 10 - 13 of this report. REPORTING THE CITY’S MOST SIGNIFICANT FUNDS Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The City uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the City’s most significant funds rather than the City as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining schedules in a later section of this report. The City has three kinds of funds: Governmental funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, the focus is very different with fund statements, providing a distinctive view of the City’s governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near-term. Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of the short-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. Budgetary comparison statements are included in the basic financial statements for the general fund and major special revenue fund. Budgetary comparison schedules for the other special revenue funds and the debt service fund can be found in a later section of this report. These statements and schedules demonstrate compliance with the City’s adopted and final revised budget. The basic government fund financial statements are presented on pages 14 – 15 of this report. Proprietary 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 are provided to customers external to the City organization such as the water utilities and the parking garages. Internal service funds provide services and charge fees to customers within the City - 5 - organization such as equipment services (repair and maintenance of City vehicles) and the insurance fund. Because the City’s internal service funds primarily serve governmental functions, they are included within the governmental activities of the government-wide financial statements. Proprietary fund statements and statements for discretely presented component units (reporting is similar to proprietary funds) provide both long-term and short-term financial information consistent with the focus provided by the government-wide financial statements but with more detail for the Water Fund and the Township. Individual fund information for internal service funds and non-major enterprise funds is found in combining schedules in a later section of this report. The basic proprietary fund financial statements are presented on pages 17 - 21 of this report. Fiduciary funds such as the employee pension plans are reported in the fiduciary fund financial statements, but are excluded from the government-wide reporting. Fiduciary fund financial statements report resources that are not available to fund City programs. Fiduciary fund financial statements report similarly to proprietary funds. The basic fiduciary fund financial statements are presented on pages 22 - 23 of this report. Notes to the financial statements The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 27 of this report. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation 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 84 - 87 of this report. Major funds and component units are reported in the basic financial statements as discussed. Combining and individual statements and schedules for non-major and internal service funds are presented in a subsequent section of this report beginning on page 88. Additional information on capital assets and long-term debt can be found in notes (to the financial statements) 49 and 60, respectively. Financial Analysis of the City as a Whole The City’s combined net assets increased by $29,089,239 from FY 2004 – an increase from $194,352,212 to $223,441,451. STATEMENT OF NET ASSETS Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Current and Other Assets $148,165,127 $150,486,948 $35,542,196 $38,579,066 $183,707,323 $189,066,014 Capital Assets 140,959,825 128,853,599 264,856,918 257,467,197 405,816,743 386,320,796 Total Assets 289,124,952 279,340,547 300,399,114 296,046,263 589,524,066 575,386,810 Long-Term Liabilities 105,722,077 124,593,383 124,190,111 125,402,379 229,912,188 249,995,762 Other Liabilities 107,155,602 98,223,403 29,014,825 32,815,433 136,170,430 131,038,836 Total Liabilities 212,877,679 222,816,786 153,204,936 158,217,812 366,082,615 381,034,598 - 6 - Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Net Assets: Investment in Capital assets, net of Debt 426,491 -9,753,068 114,442,311 106,538,749 114,868,802 96,785,681 Restricted 32,810,919 33,415,913 11,274,326 11,157,974 44,085,245 44,573,887 Unrestricted 43,009,863 32,860,916 21,477,541 20,131,728 64,487,404 52,992,644 Total Net Assets $76,247,273 $56,523,761 $147,194,178 $137,828,451 $223,441,451 $194,352,212 The City’s total revenues increased by $7,684,078 or 5.41%. The City’s cost of all programs was decreased by $5,229,524. Governmental activities increased due to net revenues over expenditures that added monies to the fund reserves. The main reason for the net asset 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 capital projects. Governmental Funds: The governmental activities experienced a net increase of $29,089,239. This was mainly due to a surplus in the General Fund of revenues over expenditures, and settlement of some major liabilities in Insurance Fund. Increased accumulations of funds in the TIF funds were offset by the spending which occurred in the Motor Fuel Tax and Emergency Telephone System funds. Business Funds: The business-type activities experienced a net increase in fund balance of $9,365,727. 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 $90 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 the spring of 2005, demolition and construction began on the Sherman Plaza project. This project will include a new parking facility as well as a high rise condominium and retail space. The following table provides a summary of the City’s changes in net assets: STATEMENT OF CHANGES IN NET ASSETS Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Revenue Program Revenues: Charges for services $26,246,493 $23,287,630 $32,623,801 $33,443,731 $58,870,294 $56,731,361 Operating grants and contributions 3,713,201 3,479,547 3,713,201 3,479,547 Capital grants and contributions 212,000 1,458,824 212,000 1,458,824 General Revenues: Sales taxes 13,984,119 13,421,664 13,984,119 13,421,664 Property taxes 38,738,232 36,768,899 38,738,232 36,768,899 Utility taxes 8,397,773 7,986,489 8,397,773 7,986,489 Other taxes 23,935,340 20,194,349 23,935,340 20,194,349 Investment income 1,547,399 1,710,681 380,859 343,325 1,928,258 2,054,006 Total Revenues 116,774,557 108,308,083 33,004,660 33,787,056 149,779,217 142,095,139 - 7 - Governmental Activities Business-type Activities Total Primary Government 2005 2004 2005 2004 2005 2004 Expenses General management and support 14,450,761 15,791,355 14,450,761 15,791,355 Public safety 31,167,640 39,237,180 31,167,640 39,237,180 Public works 14,224,855 13,065,137 14,224,855 13,065,137 Health and human resource development 5,843,522 5,370,262 5,843,522 5,370,262 Recreation and cultural opportunities 18,276,621 17,129,356 18,276,621 17,129,356 Housing and economic development 6,757,476 5,973,494 6,757,476 5,973,494 Interest 5,086,412 4,899,622 5,086,412 4,899,622 Water 8,175,691 8,992,102 8,175,691 8,992,102 Motor vehicle parking system 4,777,494 3,468,096 4,777,494 3,468,096 Sewer 8,781,361 8,964,469 8,781,361 8,964,469 Maple avenue garage 3,148,145 3,028,429 3,148,145 3,028,429 Total Expense 95,807,287 101,466,406 24,882,691 24,453,096 120,689,978 125,919,502 Increase in net assets before transfer 20,967,270 6,841,677 8,121,969 9,333,960 29,089,239 16,175,637 Transfers -1,243,758 -4,335,194 1,243,758 4,335,194 0 0 Increase in net assets 19,723,512 2,506,483 9,365,727 13,669,154 29,089,239 16,175,637 Net Assets - Beginning 56,523,761 54,017,278 137,828,451 124,159,297 194,352,212 178,176,575 Net Assets - Ending $76,247,273 $56,523,761 $147,194,178 $137,828,451 $223,441,451 $194,352,212 Financial Analysis of the City’s Funds Governmental Funds As discussed, governmental funds are reported in the fund statement with a short-term, inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. Governmental funds reported ending fund balances of $108,643,107 as a year-end total, including $20,140,089 unrestricted, indicating availability for continuing City service requirements. Reserved fund balances include: $447,032 committed to liquidate encumbrances remaining from prior years, $3,200,000 committed to Illinois Municipal Retirement Fund (IMRF) reserves. The total ending fund balances of governmental funds show a decrease of $2,580,826 from the prior year. The decrease is primarily the result of Sherman Garage construction and demolition activities. Major Governmental Funds The General Fund is the City’s primary operating fund and the largest source of day-to-day service delivery. The fund balance of the General Fund increased by $4,117,066. 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 of 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 and increases in sales tax. State shared revenues, such as income taxes and use taxes, continued solid increases as the economy starts to recover. The City Council has been diligent in assuring that one-time non- recurring 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 in spite of a poor economy during that period. This again was a policy objective set by the City Council that has been achieved during less than ideal economic conditions. - 8 - The Washington National Tax Increment District Fund has a fund balance of $25,202,812. Proprietary Funds The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long-term information about financial status. Major Proprietary 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 is supported by external water sales to the Village of Skokie and the Northwest Water Commission. The Sewer Fund is in the final stages of a $200 million plus sewer renovation program which is being funded by IEPA loans that are being paid off over twenty years with phased sewer rate increases which will be finalized in FY 2006. The only business fund that needs to address future financial issues is the Motor Vehicle Parking system which experienced a $2,024,972 decrease in net assets this year. This is the third consecutive year the fund has experienced a decrease in net assets. The Parking Committee met and the Council adopted rate increases in meters, lots, parking taxes, and garage rates amounting to about $1 million in additional revenues to the Parking Fund per year. Internal Service Funds The City’s combined internal service funds’ net assets were a surplus of $216,477 as of February 28, 2005. At March 1, 2004, the combined funds had a deficit of $17,537,766. Over $12 million of this large increase in net assets related to one liability case verdict which was settled out of court in July 2005. The City has instituted new risk management practices and has developed a funding strategy to address the immediate liabilities and future reserve needs and funding requirements. General Fund Budgetary Highlights The original budgets for the General Fund and other funds did not have to be amended this year. Actual expenditures in the General Fund slightly exceeded budgeted levels. Capital Assets The City established a policy of capitalizing equipment and vehicles with $20,000 or more in value and infrastructure and building improvements with $100,000 or more in value. The City’s investment in capital assets, net of accumulated depreciation, for governmental and business-type activities as of February 28, 2005, was $405,816,743. The total increase in this net investment was 9.0% for governmental and 2.0% for business-type activities. The overall increase was 5.0% for the City as a whole. Major capital asset events during the current fiscal year included continued construction of the downtown revitalization projects. Readers desiring more detailed information on capital asset activity should see Note 6 in the Notes to the Financial Statements. Long-Term Debt At the end of the fiscal year, the City had total bonded debt outstanding of $187,110,000. Of this amount, $73,496,641 is funded directly from property taxes. The other major component is $106,935,000 supported by pledged revenues generated primarily by the business-type activities of the City and the City’s four tax increment financing (TIF) Districts. During the current year, the City issued $13.355 million in fixed rate general obligation bonds for capital improvements and $11.730 million in refunding 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. - 9 - Bond Ratings The City’s general obligation bonds are rated Aaa and VIMG-1 by Moody’s Investor Rating Service and AAA by Fitch Ratings. Evanston City Water Fund revenue bonds are rated Aa1 and AA for uninsured issues. The Aaa and AAA ratings were confirmed during the year for the Series 2004 bond issue which was for capital improvements. Economic Factors The Evanston economy continues to hold firm in spite of a state economy that continues to lag. FY 2002 was the first year that state revenues actually decreased in almost 50 years and FY 2005 revenues were slightly up from FY 2004, according to Illinois State Comptroller Dan Hynes. While the state’s unemployment rate continues to be about 5.9%, Evanston’s is closer to 5.0%. Both state and Evanston sales tax increased in FY 2005. The City’s housing market continued to boom with the largest year ever in real estate transfer tax receipts of over $4.2 million. For the fifth 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 indicates that number should continue to increase. The Water Fund continues to generate $7,411,417 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. Half of this 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 completing an over $200 million sewer improvement program. 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’s Finance Department at City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201 or access their website at www.cityofevanston.org. THIS PAGE INTENTIONALLY LEFT BLANK 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 $ 48,245,347 $ 3,627,348 $ 51,872,695 Investments 45,990,805 3,953,897 49,944,702 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 37,443,415 - 37,443,415 Accounts - 4,531,987 4,531,987 Notes 5,450,629 - 5,450,629 Special assessments 649,243 - 649,243 Accrued interest 104,808 18,470 123,278 Other 2,373,574 11,052 2,384,626 Due from other governments 6,391,283 - 6,391,283 Internal balances 1,261,589 (1,261,589) - Inventories 254,434 612,043 866,477 Restricted assets Cash and equivalents and investments - 23,739,988 23,739,988 Capital assets Capital assets not being depreciated 25,162,761 3,297,937 28,460,698 Construction in progress 9,284,228 19,902,342 29,186,570 Capital assets (net of accumulated depreciation) 106,512,836 241,656,639 348,169,475 Other assets - 309,000 309,000 Total Assets $ 289,124,952 $ 300,399,114 $ 589,524,066 The accompanying notes are an integral part of this statement. February 28, 2005 Primary Government Assets - 10 - Governmental Business-type Activities Activities Total Vouchers payable $ 4,535,159 $ 517,423 $ 5,052,582 Accrued payroll 986,106 76,562 1,062,668 Interest payable 5,713 55,953 61,666 Other payables 166,852 - 166,852 Due to other governments 54,839 - 54,839 Due to pension fund 1,445,371 - 1,445,371 Payable from restricted assets Vouchers payable - 625,349 625,349 Interest payable - 1,096,762 1,096,762 Unearned revenues 24,572,424 - 24,572,424 Noncurrent liabilities Payable from restricted assets - due within one year - 7,584,490 7,584,490 Due within one year 75,389,138 19,058,286 94,447,424 Due in more than one year 105,722,077 124,190,111 229,912,188 Total Liabilities 212,877,679 153,204,936 366,082,615 Investment in capital assets, net of related debt 426,491 114,442,311 114,868,802 Restricted Pensions - IMRF 3,200,000 - 3,200,000 Compensated absences 2,576,360 - 2,576,360 Culture and recreation 547,648 - 547,648 Debt service 25,310,099 11,274,326 36,584,425 Other 1,176,812 - 1,176,812 Unrestricted 43,009,863 21,477,541 64,487,404 Total Net Assets $ 76,247,273 $ 147,194,178 $ 223,441,451 Primary Government Liabilities Net Assets - 11 - CITY OF EVANSTON, ILLINOIS Statement of Activities Functions/Programs Governmental activities: General management and support $ 14,450,761 $ 13,262,430 $ 141,488 Public safety 31,167,640 224,953 136,872 Public works 14,224,855 178,244 2,261,126 Health and human resource development 5,843,522 1,071,628 1,173,715 Recreation and cultural opportunities 18,276,621 3,730,839 - Housing and economic development 6,757,476 7,778,399 - Interest 5,086,412 - - Total governmental activities 95,807,287 26,246,493 3,713,201 Business-type activities: Water 8,175,691 13,186,845 - Motor vehicle parking system 4,777,494 3,011,133 - Sewer 8,781,361 14,913,396 - Maple avenue garage fund 3,148,145 1,512,427 - Total business-type activities 24,882,691 32,623,801 - Total primary governmen $ 120,689,978 $ 58,870,294 $ 3,713,201 General revenues: Property and other taxes Sales tax 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. Year ended February 28, 2005 Program Revenues Operating Charges for Grants and - 12 - Expenses Services Contributions $ 152,000 $ (894,843) $ - $ (894,843) - (30,805,815) - (30,805,815) - (11,785,485) - (11,785,485) - (3,598,179) - (3,598,179) 60,000 (14,485,782) - (14,485,782) - 1,020,923 - 1,020,923 - (5,086,412) - (5,086,412) 212,000 (65,635,593) - (65,635,593) - - 5,011,154 5,011,154 - - (1,766,361) (1,766,361) - - 6,132,035 6,132,035 - - (1,635,718) (1,635,718) - - 7,741,110 7,741,110 $ 212,000 (65,635,593) 7,741,110 (57,894,483) 79,714,394 - 79,714,394 345,000 - 345,000 53,605 - 53,605 4,942,465 - 4,942,465 1,547,399 380,859 1,928,258 (1,243,758) 1,243,758 - 85,359,105 1,624,617 86,983,722 19,723,512 9,365,727 29,089,239 56,523,761 137,828,451 194,352,212 $ 76,247,273 $ 147,194,178 $ 223,441,451 Net (Expense) Revenue and Capital Changes in Net Assets Grants and Governmental Total - 13 - Business-type Contributions Activities Activities CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet Washington National Tax Nonmajor Total Increment Governmental Governmental General District Funds Funds Cash and equivalents 9,012,168$ 2,161,510$ 36,849,192$ 48,022,870$ Investments 2,990,268 24,758,388 11,198,627 38,947,283 Receivables Property taxes (net of allowance) 14,213,232 - 23,230,183 37,443,415 Notes - - 5,450,629 5,450,629 Special assessments - - 649,243 649,243 Accrued interest 1,375 61,719 41,714 104,808 Other 2,152,622 - 192,960 2,345,582 Due from other governments 5,854,693 - 536,590 6,391,283 Due from other funds 2,407,301 - 4,306,048 6,713,349 Total Assets 36,631,659$ 26,981,617$ 82,455,186$ 146,068,462$ Liabilities Vouchers payable 1,821,377$ 1,722,632$ 805,913$ 4,349,922$ Accrued payroll 952,730 - 10,805 963,535 Compensated absences payable 452,081 - - 452,081 Other 167,243 - (391) 166,852 Due to other governments 25,575 - 4,525 30,100 Due to other funds 566,032 56,173 6,268,236 6,890,441 Unearned revenues 9,489,038 - 15,083,386 24,572,424 Total Liabilities 13,474,076 1,778,805 22,172,474 37,425,355 Fund Balances Reserved 7,947,852 - 30,760,728 38,708,580 Unreserved Capital Project 318,496 25,202,812 24,273,130 49,794,438 Special Revenue Funds - - 5,248,854 5,248,854 General Fund 14,891,235 - - 14,891,235 Total Fund Balances 23,157,583 25,202,812 60,282,712 108,643,107 Total Liabilities and Fund Balances 36,631,659$ 26,981,617$ 82,455,186$ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.134,800,020 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. (167,412,331) The net assets of the internal service fund are included in the governmental activities in the statement of net assets.216,477 Net assets of governmental activities 76,247,273$ The accompanying notes are an integral part of this statement. February 28, 2005 Assets Liabilities and Fund Balances - 14 - 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 38,779,313$ -$ 27,964,419$ 66,743,732$ Licenses and permits 6,773,407 - - 6,773,407 Special assessments - - 365,554 365,554 Intergovernmental 14,732,805 - 6,885,157 21,617,962 Charges for services 6,052,956 - - 6,052,956 Fines and forfeits 3,999,105 - - 3,999,105 Investment income 192,461 530,341 817,396 1,540,198 Miscellaneous 8,102,267 - 1,349,283 9,451,550 Total Revenues 78,632,314 530,341 37,381,809 116,544,464 Expenditures Current General management and support 12,397,917 235,423 2,032,166 14,665,506 Public safety 28,730,903 - 7,591,720 36,322,623 Public works 12,070,461 - - 12,070,461 Health and human resource development 5,200,662 - 600,000 5,800,662 Recreation and cultural opportunities 15,389,468 - 104,000 15,493,468 Housing and economic development 2,928,285 - 3,788,946 6,717,231 Pensions 1,371,992 - - 1,371,992 Debt service Principal - - 7,885,000 7,885,000 Interest - - 5,027,536 5,027,536 Fiscal agent fees - - 359,136 359,136 Capital outlay - 9,252,576 8,955,548 18,208,124 Total Expenditures 78,089,688 9,487,999 36,344,052 123,921,739 Excess (Deficiency) of Revenues Over (Under) Expenditures 542,626 (8,957,658) 1,037,757 (7,377,275) Other Financing Sources (Uses) Transfers in 4,264,000 - 1,756,393 6,020,393 Transfers out (689,560) - (14,372,091) (15,061,651) Issuance of debt - - 25,723,735 25,723,735 Escrow funding - - (11,886,028) (11,886,028) Total Other Financing Sources (Uses) 3,574,440 - 1,222,009 4,796,449 Net Change in Fund Balances 4,117,066 (8,957,658) 2,259,766 (2,580,826) Fund Balances -Beginning of Year 19,040,517 34,160,470 58,022,946 111,223,933 Fund Balances - End of Year 23,157,583$ 25,202,812$ 60,282,712$ 108,643,107$ The accompanying notes are an integral part of this statement. Year ended February 28, 2005 - 15 - CITY OF EVANSTON, ILLINOIS Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds $ (2,580,826) 11,819,194 18,970,000 (25,723,735) (515,364) Internal service funds are reported separately in the fund financial statements. 17,754,243 Change in net assets of governmental activitie $ 19,723,512 The accompanying notes are an integral part of this statement. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended February 28, 2005 - 16 - 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 2004 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. THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Net Assets Governmental Motor Vehicle Activities- Maple Parking Internal Avenue System Service Water Sewer Garage (non-major) Total Funds Current Assets Cash and equivalents 136,795$ -$ 780,447$ 2,710,106$ 3,627,348$ 222,477$ Investments - - 3,953,897 - 3,953,897 7,043,522 Receivables - Accounts - billed 1,068,680 265,433 - - 1,334,113 - Accounts - unbilled 919,650 2,278,224 - - 3,197,874 - Accrued interest - 18,470 - - 18,470 - Other - - - 11,052 11,052 27,992 Due from other funds 319,710 4,669 46,103 85,538 456,020 244 Inventories 479,464 132,579 - - 612,043 254,434 Total Current Assets 2,924,299 2,699,375 4,780,447 2,806,696 13,210,817 7,548,669 Noncurrent Assets Restricted cash and equivalents and investments 10,850,215 12,889,773 - - 23,739,988 - Total Restricted Assets 10,850,215 12,889,773 - - 23,739,988 - Capital Assets Land 555,415 - - 2,742,522 3,297,937 - Construction in progress 1,996,767 17,854,575 51,000 - 19,902,342 - Capital assets being depreciated 54,465,590 189,969,257 27,128,673 8,506,436 280,069,956 18,209,749 Less accumulated depreciation (12,905,428) (20,160,584) (2,862,617) (2,484,688) (38,413,317) (12,049,944) Total Capital Assets 44,112,344 187,663,248 24,317,056 8,764,270 264,856,918 6,159,805 Other Assets Receivables Notes - - - 309,000 309,000 - Total Assets 57,886,858$ 203,252,396$ 29,097,503$ 11,879,966$ 302,116,723$ 13,708,474$ The accompanying notes are an integral part of this statement. February 28, 2005 Business-type Activities- Enterprise Funds Assets - 17 - Governmental Motor Vehicle Activities- Maple Parking Internal Avenue System Service Water Sewer Garage (non-major) Totals Funds Current Liabilities (Payable from Current Assets) Vouchers payable 360,319$ 33,347$ 57,390$ 66,367$ 517,423$ 185,237$ Accrued payroll 48,816 14,893 - 12,853 76,562 22,571 Interest payable - - - 55,953 55,953 5,713 Compensated absences payable 311,322 71,449 - 71,467 454,238 100,019 General obligation bonds payable - - 16,900,000 545,000 17,445,000 450,000 Unamortized bond expenses and discount - - (35,958) - (35,958) - Claims payable - - - - - 9,731,084 Due to other government - - - - - 24,739 Due to other funds 1,308,102 253,945 129,870 25,692 1,717,609 6,934 Total Payable from Current Assets 2,028,559 373,634 17,051,302 777,332 20,230,827 10,526,297 Current Liabilities (Payable from Restricted Assets) Vouchers payable 10,629 614,720 - - 625,349 - Interest payable 29,559 1,067,203 - - 1,096,762 - Notes payable - Sewer IEPA Loans - 5,515,323 - - 5,515,323 - General obligation bonds payable - 1,925,000 - - 1,925,000 - Revenue bonds payable 144,167 - - - 144,167 - Total Payable from Restricted Assets 184,355 9,122,246 - - 9,306,601 - Long-Term Liabilities Notes payable - Sewer IEPA Loans - 96,684,688 - - 96,684,688 - General obligation bonds payable - 20,570,000 - 3,715,000 24,285,000 - Revenue bonds payable 4,430,833 - - - 4,430,833 - Unamortized bond expenses and discount 16,662 (32,066) - - (15,404) - Claims payable - - - - - 2,965,700 Total Long-Term Liabilities 4,447,495 117,222,622 - 3,715,000 125,385,117 2,965,700 Total Liabilities 6,660,409 126,718,502 17,051,302 4,492,332 154,922,545 13,491,997 Invested in capital assets, net of related debt 39,520,682 63,000,303 7,417,056 4,504,270 114,442,311 5,709,805 Restricted for debt service 11,274,326 - - - 11,274,326 - Unrestricted 431,441 13,533,591 4,629,145 2,883,364 21,477,541 (5,493,328) Total net assets 51,226,449$ 76,533,894$ 12,046,201$ 7,387,634$ 147,194,178$ 216,477$ Business-type Activities- Enterprise Funds Liabilities Net Assets - 18 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Governmental Maple Motor Vehicle Activities- Avenue Parking Internal Garage System Service Water Sewer Fund (non-major) Total Funds Operating Revenues Charges for services 12,739,153$ 14,914,790$ 1,510,411$ 3,001,338$ 32,165,692$ 6,584,000$ Miscellaneous 447,692 (1,394) 2,016 9,795 458,109 93,746 Total Operating Revenues 13,186,845 14,913,396 1,512,427 3,011,133 32,623,801 6,677,746 Operating Expenses Excluding Depreciation Administration 698,958 - - 1,322,753 2,021,711 - Operations 5,696,273 1,969,842 1,870,336 1,563,964 11,100,415 (4,160,893) Total Operating Expenses Excluding Depreciation 6,395,231 1,969,842 1,870,336 2,886,717 13,122,126 (4,160,893) Operating Income (Loss) Before Depreciation 6,791,614 12,943,554 (357,909) 124,416 19,501,675 10,838,639 Depreciation 1,296,208 2,607,333 685,553 262,305 4,851,399 1,455,720 Operating Income (Loss) 5,495,406 10,336,221 (1,043,462) (137,889) 14,650,276 9,382,919 Nonoperating Revenues (Expenses) Investment income 151,797 132,840 4,833 91,389 380,859 15,718 Other nonoperating revenues - - - - - 5,695 Interest expense (201,705) (3,919,997) (574,589) (324,737) (5,021,028) (58,876) Bond expenses and amortization of discount (3,654) (7,276) (17,667) - (28,597) (1,186) Gain (loss) on disposition of assets (2,643) (663) - (1,303,735) (1,307,041) 59,973 Total Nonoperating Revenues (Expenses) (56,205) (3,795,096) (587,423) (1,537,083) (5,975,807) 21,324 Income (Loss) Before Transfers 5,439,201 6,541,125 (1,630,885) (1,674,972) 8,674,469 9,404,243 Transfers In (Out) Downtown TIF Debt Service Fund - - 4,000,000 - 4,000,000 - Insurance Fund (4,000,000) (4,000,000) - - (8,000,000) - Fleet Fund - - - (350,000) (350,000) - Water Fund (1,308,102) - - - (1,308,102) - Depreciation Improvement & Extension 1,308,102 - - - 1,308,102 - General Obligation Debt Service Fund (1,308,102) - - - (1,308,102) - Capital Improvement Fund 4,000,000 4,000,000 - - 8,000,000 - Water Fund - - - - - 4,000,000 Parking Fund - - - - - 350,000 Sewer Fund - - - - - 4,000,000 Economic Development Fund - - 650,000 - 650,000 - General Fund (2,615,200) - 314,560 - (2,300,640) - Change in Net Assets 1,515,899 6,541,125 3,333,675 (2,024,972) 9,365,727 17,754,243 Total Net Assets (Deficit) - Beginning of Year 49,710,550 69,992,769 8,712,526 9,412,606 137,828,451 (17,537,766) Total Net Assets - End of Year 51,226,449$ 76,533,894$ 12,046,201$ 7,387,634$ 147,194,178$ 216,477$ The accompanying notes are an integral part of this statement. Year ended February 28, 2005 Business-type Activities- Enterprise Funds - 19 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Governmental Maple Motor Vehicle Activities- Avenue Parking Internal Garage System Service Water Sewer Fund (non-major) Total Funds Cash Flows from Operating Activities Receipts from customers and users 13,029,069$ 15,115,962$ 1,512,427$ 3,123,333$ 32,780,791 6,668,013$ Receipts from interfund services provided (453,667) (4,669) 138,005 (77,129) (397,460) 2,090,516 Payments to suppliers (5,741,123) (3,009,163) (1,917,969) (1,561,847) (12,230,102) (8,825,500) Payments to employees (730,964) 2,594 - (1,322,707) (2,051,077) (2,482,980) Payments for interfund services provided 1,308,102 - (271,527) (53,468) 983,107 (38,703) Net Cash Provided by (Used for) Operating Activities 7,411,417 12,104,724 (539,064) 108,182 19,085,259 (2,588,654) Cash Flows from Noncapital Financing Activities Operating transfers (out) Downtown TIF Debt Serivce Fund - - 4,000,000 - 4,000,000 - Insurance Fund (4,000,000) (4,000,000) - - (8,000,000) - Fleet Fund - - - (350,000) (350,000) - Water Fund (1,308,102) - - - (1,308,102) - Depreciation Improvement & Extension 1,308,102 - - - 1,308,102 - General Obligation Debt Service Fund (1,308,102) - - - (1,308,102) - Capital Improvement Fund 4,000,000 4,000,000 - - 8,000,000 - Water Fund - - - - - 4,000,000 Parking Fund - - - - - 350,000 Sewer Fund - - - - - 4,000,000 Economic Development Fund - - 650,000 - 650,000 - General Fund (2,615,200) - 314,560 - (2,300,640) - Net Cash Provided by (Used for) Noncapital Financing Activities (3,923,302) - 4,964,560 (350,000) 691,258 8,350,000 Cash Flows from Capital and Related Financing Activities Sale of capital assets - - - - - 281,858 Acquisition and construction of capital assets (3,331,997) (10,216,164) - - (13,548,161) (1,958,941) Principal paid on revenue bonds (805,000) - - - (805,000) - Interest paid on revenue bonds (206,575) - - - (206,575) - Principal paid on general obligation bonds - (1,810,000) (3,200,000) (510,000) (5,520,000) (915,000) Interest paid on general obligation bonds - (1,383,467) (574,589) (324,737) (2,282,793) (70,885) Principal paid on IEPA loans - (5,354,606) - - (5,354,606) - Interest paid on IEPA loans - (2,536,530) - - (2,536,530) - Proceeds from IEPA loans - 7,901,213 - - 7,901,213 - Net Cash (Used for) Capital and Related Financing Activities (4,343,572) (13,399,554) (3,774,589) (834,737) (22,352,452) (2,662,968) Cash Flows from Investing Activities Proceeds from sales and maturities of investments - - - 408,308 408,308 4,000,000 Purchase of investment - - - - - (7,515,580) Interest income 151,797 132,840 4,833 91,389 380,859 15,718 Net Cash Provided by Investing Activities 151,797 132,840 4,833 499,697 789,167 (3,499,862) Net Increase (Decrease) in Cash and Equivalents (703,660) (1,161,990) 655,740 (576,858) (1,786,768) (401,484) Cash and Equivalents Beginning of year 11,690,670 14,051,763 4,078,604 3,286,964 33,108,001 623,961 End of yea 10,987,010$ 12,889,773$ 4,734,344$ 2,710,106$ 31,321,233$ 222,477$ Reconciliation Cash and equivalents Unrestricted 136,795$ -$ 4,734,344$ 2,710,106$ 7,581,245$ 222,477$ Restricted 10,850,215 12,889,773 - - 23,739,988 - 10,987,010$ 12,889,773$ 4,734,344$ 2,710,106$ 31,321,233$ 222,477$ The accompanying notes are an integral part of this statement. Continued Year ended February 28, 2005 Business-type Activities- Enterprise Funds - 20 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Governmental Maple Motor Vehicle Activities- Avenue Parking Internal Garage System Service Water Sewer Fund (non-major) Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating income (loss) 5,495,406$ 10,336,221$ (1,043,462)$ (137,889)$ 14,650,276$ 9,382,919$ Depreciation 1,296,208 2,607,333 685,553 262,305 4,851,399 1,455,720 Changes in assets and liabilities Other receivables 1,360 160,785 - (8,751) 153,394 (9,733) Accounts receivable (159,136) - - - (159,136) - lnterfund receivable (453,667) (4,669) 138,005 (77,129) (397,460) 2,090,516 Inventories (18,080) (21,956) - - (40,036) 35,746 Accrued interest receivable - 41,781 - 120,951 162,732 - Compensated absences (6,689) (319) - (1,085) (8,093) 487 Accrued payroll (25,317) 2,913 - 1,131 (21,273) 3,432 lnterfund payable 1,308,102 - (271,527) (53,468) 983,107 (38,703) lnterfund payable (restricted) - 139,191 - - 139,191 - Vouchers payable 83,784 5,541 (47,633) 8,720 50,412 18,121 Vouchers payable (restricted) (110,554) (1,090,047) - - (1,200,601) - Interest payable - (72,050) - (6,603) (78,653) - Claims payable - - - - - (15,468,868) Due to other governments - - - - - (58,291) Net Cash Provided by (Used for) Operating Activities 7,411,417$ 12,104,724$ (539,064)$ 108,182$ 19,085,259$ (2,588,654)$ The accompanying notes are an integral part of this statement. Business-type Activities- Enterprise Funds - 21 - Year ended February 28, 2005 CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets Special Assessmen Pension Agency Trust Funds Fund Assets Cash and short-term investments 7,378,310$ 21,053$ Receivables Accrued interest 248,812 - Due from other funds 3,392,217 20 Total Receivables 3,641,029 20 Investments, at fair value U.S. Government obligations 37,189,079 - Common stock 5,072,541 - Mutual funds 42,283,807 - Total Investments 84,545,427 - Total Assets 95,564,766 21,073 Liabilities Vouchers payable 20,564 - Due to special assessment bondholders - 21,073 Due to other funds 1,946,866 - Total Liabilities 1,967,430 21,073 et assets held in trus 93,597,336$ -$ The accompanying notes are an integral part of this statement. February 28, 2005 - 22 - CITY OF EVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Pension Trust Funds Additions Contributions Employer 6,615,612$ Plan members 1,675,028 Total contributions 8,290,640 Investment income Net appreciation in fair value of investments 1,278,904 Interest 2,189,465 Total investment income 3,468,369 Less investment expense 238,002 Net investment income 3,230,367 Total additions 11,521,007 Deductions Benefits 8,722,677 Refunds of contributions 124,768 Administrative expense 67,648 Total deductions 8,915,093 Net increase 2,605,914 Net assets held in trust for pension benefits Beginning of year 90,991,422 End of yea 93,597,336$ The accompanying notes are an integral part of this statement. Year ended February 28, 2005 - 23 - CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements Note 1. Summary of Significant Accounting Policies Page A. Reporting Entity 27 B. Government-wide and Fund Financial Statements 29 C. Fund Accounting 29 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 30 E. Cash and Equivalents 33 F. Investments 33 G. Inventories 34 H. Capital Assets 34 I. Compensated Absences 34 J. Long-Term Obligations 35 K. Self-Insurance 35 L. Property Taxes 35 M. Fund Equity 36 N. Interfund Transactions 36 O. Use of Estimates 36 Note 2. Reconciliation of Government-wide and Fund Financial Statements A. 37 B. 37 Note 3. Stewardship, Compliance and Accountability A. Budgetary Information 39 B. Deficit Fund Equity 41 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 42 B. Pooling of Cash and Investments 42 C. Deposits 43 D. Investments 45 E. Reconciliation of Unrestricted and Restricted Cash and Investments 47 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 -24- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements (continued from previous page) Note 5. Receivables A. Summary of Receivables 48 B. Notes Receivable – Special Revenue Funds 48 Note 6. Capital Assets A. Capital Asset Activity 49 B. Construction Commitments 51 Note 7. Interfunds A. Interfund Accounts 52 B. Interfund Transfers 56 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 63 E. Notes Payable – Sewer IEPA Loans 63 F. Prior Years' General Obligation Bond Defeasances 64 G. Industrial Revenue Bonds 65 Note 10. Fund Equity A. Restrictions of Retained Earnings - Water Fund 65 B. Restrictions of Fund Equity 66 C. Unrestricted Fund Equity - Designated 67 Note 11. Individual Fund Activities A. General Obligation Debt Service Fund 68 B. Water Fund 68 C. Special Service District No. 4 68 Note 12. Risk Management – Claims and Judgments 69 Note 13. Subsequent Events 70 -25- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements (continued from previous page) Note 14. Contingencies 70 Note 15. Joint Ventures A. Northwestern University 70 B. Solid Waste Agency of Northern Cook County 71 C. Evanston Housing Corporation 73 Note 16. Deferred Compensation Plan 74 Note 17. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description 75 B. Funding Status and Progress 76 C. Annual Pension Cost 76 Police and Firefighters' Pension Plans D. Plan Descriptions 78 E. Summary of Significant Accounting Policies - Basis of Accounting 79 - Method Used to Value Investments 79 F. Contributions and Reserves 79 G. Concentration of Investments 80 H. Three-Year Trend Information – Pension Trust Funds 81 I. Pensions - Detailed Statement of Net Assets 82 J. Pensions - Detailed Statement of Changes in Net Assets 83 -26- 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 Also implemented in fiscal year 2003, the City adopted the provisions of GASB Statement No. 38 -Certain Financial Statement Note Disclosures . This Statement modifies, establishes, and rescinds certain financial statement note disclosures. 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. Fiscal year 2003 was the first year in whichthe City implementedGASB Statement No. 34 - Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments (GASB 34)and Statement No. 37 - Basic Financial Statements and Management's Discussion and Analysis - for State and Local Governments: Omnibus . These Statements establish new financial reporting requirements and significantly change the format and content of the City's comprehensive annual financial report (CAFR). The City was incorporated in 1863. The City operates under a Council-Manager form of government,is a home rule municipalityas definedby Illinois state 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 legallya separate entity, it is governedby the same board; therefore,data from this unit is blendedwith data of the City. -27- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued Blended Component Unit: Complete financial statements for the Township may be obtained at the following address: Town of the City of Evanston 1910 Main Street Evanston, Illinois 60201 Joint Ventures: The City participates in three joint ventures, which are reported as 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 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-en Amounts includedin this report are as of and for the year ended March 31, 2004. This report is the most recent one available. The Assessor also works to assure equity of assessments, and maintains records of building and demolition permits and of all tax-exempt properties. The Township Board of Trustees can issue debt on its own behalf, and such debt can be issued in the Township’s name alone. The 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. -28- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B. Government-wide and Fund Financial Statements C. Fund Accounting The government-widefinancial statements (i.e., the statement of net assets and the statement of activities) report informationon all of the nonfiduciary activities 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 City uses funds to report on its financial position and the results of its operations. A fund is a separate accounting entity with a self-balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmentfunctions or activities. Funds are classified into three categories: governmental, proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." The statementof activities demonstratesthe degreeto whichthe direct expensesof a givenfunctionor segmentare offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for 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. Governmentalfunds are used to account for all or most of the City's generalactivities, includingthe collectionand disbursementof 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 generalfund 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. -29- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued C. Fund Accounting – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 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 recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures,as wellas expenditures related to compensated absences and claims and judgments, 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. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments,or on behalf of other funds within the City. When these assets are held under the terms of a formal trust agreement, a permanent fund is used. Agency funds generally are used to account for assets that the City holds on behalf of others as their agent. The pension trust fund accounts for the activities of the Police and Firefighters' Pension funds, which accumulate resources for pension benefit payments to retired police and fire personnel. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the City (internal service funds). Internal servicefunds are includedwith the governmentalfunds on the government-wide financial statements. -30- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued Taxes Fines Property Traffic fines Sales (Home Rule) Utility Intergovernmental Motor fuel tax allotments Grants Supplemental Security Income reimbursements Licenses Income taxes Sales taxes Franchise fees Charges for services Investment income Recycling program fees and sales The City reports the following major governmental funds: The followingrevenuesassociated with the current fiscal period are all consideredto be susceptibleto accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. 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. -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 proprietary funds: Additionally, the City reports the following fund types: 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 November 30, 1989, unless those pronouncements conflict or contradict GASB pronouncements, in which case, GASB prevails. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Internal Service funds account for the data processing and fleet management 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 Village of Skokie, Illinois and the Northwest Water Commission. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operation, maintenance, financing and related debt service, and billing and collection. The Maple Avenue Garage Fund accounts for the provision of the public parking facility on Maple Avenue. All activities are accounted for including administration, operations, financing, and revenue collection. -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 E. Cash and Equivalents F. Investments 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. Investmentsconsist of certificates of deposit, treasury obligations, and insurance contracts with maturities greater than three months. Investmentsof the pensiontrust funds are carried at fair value. Investmentswith over one year to maturity are reported at fair value. All other investmentsare stated at cost or for U.S. governmentsecurities 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. revenuerecognitioncriteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the combined balance sheet and the revenue is recognized. Amounts reported as program revenues include 1) charges to customers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including assessments. Internallydedicatedresources 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 revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and of the City’s internal servicefunds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenuesand expenses not meetingthis definitionare reported as nonoperatingrevenuesand 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 whengrant moniesare receivedprior to the incurrenceof qualifyingexpenditures. In subsequent periods, when -33- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G. Inventories H. Capital Assets Description Years Buildings and improvements 10-50 Office equipment and furniture 5-15 Machinery and equipment 5-15 Infrastructure 30-100 Library collections 7 I. Compensated Absences 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. Property, plant, and equipmentare depreciated using the straight-line method over the followingestimated useful lives: 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. 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 when incurred in the government-wideand proprietary fund financial statements. The General Fund has been used in prior years to liquidate the liability for compensated absences. 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. -34- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued J. Long-Term Obligations K. Self-Insurance L. Property Taxes The property tax calendar for Cook County is as follows: 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 In the government-widefinancial statements and proprietary fund types in the fund financial statements, long-term 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. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The City is self-insured to certain limits for general liability claims and for workers' 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 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. -35- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued L. Property Taxes - Continued M. Fund Equity N. Interfund Transactions O. Use of Estimates The Town Fund and General Assistance Fund unearned revenue represents the net portion of the 2003 property tax levy that will not be collected within 60 days of the Township's March 31, 2004 year-end. A 2% allowance for loss is reflected in the Township financial statements. In the fund financial statements, governmentalfunds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent management plans that are subject to change. In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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 between March 1, 2004 and February 28, 2005 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. 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. -36- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. General obligation bonds payable $ 143,005,000 Special service district bonds payable 3,590,000 Bonds premium liability 2,946,732 Compensated absences payable 6,487,770 Pension contributions payable 11,382,829 Net adjustments to reduce fund balance – total governmental funds to arrive at net assets – governmental activities $ 167,412,331 B. 1. Capital outlay $ 17,570,697 Depreciation expense (5,751,503) $11,819,194 Continued Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets The governmentalfund balance sheet includes a reconciliation between fund balance - total governmentalfunds and net assets – governmentalactivities as reported in the government-widestatement of net assets. One element of that reconciliationexplains that “long-termliabilities, includingbonds payable, compensatedabsences payable, and pension contribution payable, are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this $167,412,331 difference are as follows: The government fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net assets of governmental activities as reported in the government-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 $11,819,194 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 governmentalfunds to arrive at changes in net assets of governmental activities -37- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. B. 2. Principal repayments: General obligation debt $ 18,730,000 SSD#5 Bond refunded 240,000 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activitie $ 18,970,000 3. Compensated absences $ (413,020) Notes payable 333,334 Amortization income 230,055 Pension contributions (665,733) $(515,364) 4. 2004 Bond Series $ 13,355,000 2004 B Bond Series 11,730,000 Bonds premium liability 638,735 Continued Another elementof that reconciliationstates that "Issuance of 2004 Bonds provides current financial resources to governmentalfunds, whilethe repayment of the principal of long term debt consumesthe current financial resources of governmentalfunds." The details of this $25,723,735 differenceare as follows: 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 $18,970,000 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 ($515,364) difference are as follows: -38- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. B. $25,723,735 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. Continued RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS – Continued Net adjustment to decrease net changes in fund balances – total governmentalfunds to arrive at changes in net assets of governmental activities 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 2004/05 fiscal year. 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. 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 -39- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information - Continued Blended Component Unit The following City and Township funds do not have legally adopted budgets: Special Revenue Library, Neighborhood Improvement, HOME, Community Development Loan Capital Projects Library, Capital Improvements, Central Business Tax Increment District, Special Assessment 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 25, 2002. 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 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. -40- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information - Continued General Fund Revenues GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances $ 78,632,314 Increase (decrease) due to budgeting property taxes as revenue in the year of levy 789,131 Budgetary Basis Revenue $ 79,421,445 Expenditures GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances $ 78,089,688 Increase (decrease) due to Encumbrances - March 1, 2004 (698,796) Encumbrances - February 28, 2005 447,032 Budgetary Basis Expenditure $ 77,837,924 B. DEFICIT FUND EQUITY The Insurance Fund had a retained earnings deficit of $5,485,244 as of February 28, 2005. The City plans to use current resources and possible debt proceeds to pay for future liabilities. Adjustments necessary to convert City revenues and expenditures for the year ended February 28, 2005 on the GAAP basis to the budgetary basis are presented below: -41- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities B. Pooling of Cash and Investments Except for cash and investments in certain restricted and special accounts, the City pools the cash of various funds to maximizeinterest earnings. Interest incomeis allocated to the various funds based upon their respective participation. In addition, the Firefighters and Police Pension Funds may invest in various equity accounts up to a limit of 35% of the aggregate book value of the funds’ assets. Also, 10% more may be invested in separate accounts of insurance companies. Illinois statutes and the City's investmentpolicies authorize the City to invest in obligations of the U.S. Treasury, agencies, and instrumentalities of the United States, commercial paper issued by corporations organized in the UnitedStates with assets exceeding$500,000,000, savings accounts and certificates of deposit issued by financial institutions insured by the Federal Deposit Insurance Corporation, repurchase agreements, short-term discount obligations of the Federal National Mortgage Association, dividend or share accounts of a credit union which accounts are insured, money market mutual funds with portfolios limited to securities guaranteed by the United States, and the Illinois Funds. The Illinois Funds is a state-operated money market fund that is AAA rated by Standard & Poors rating Agency and consists of governmentsecurities that are investedfor 60 days or less. The fair value of IllinoisFunds is the same as the ownership interest in the fund. Illinois Funds is sponsored by the State Treasurer in accordance with state law. -42- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Deposits City Deposits insured or collateralized with securities held by the City or by its agent in the City's name $ 14,372,131 Cate or Deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name - Category 3 Deposits uncollateralized and uninsured - $ 14,372,131 Township $ 115,572 - 40,037 $ 155,609 Deposits collateralized with securities held by the pledging financial Deposits uncollateralized and uninsured Total Townshi De osit Total City Deposits At March 31, 2004, the carrying amount of the Township's deposits was $150,305. The financial institutions' alances totaled $155,609 and are cate orized b level of risk as follow institution's trust department or agent in the Township's name Category 2 Cate or 3 Category 1 Deposits insured or collateralized with securities held by the Township or by its agent in the Township's name Deposits consist of deposits in interest-bearing and noninterest-bearing checking accounts and certificates of deposit. At February 28, 2005, the carrying amount of the City's deposits, includingcash on hand of $41,277 was $12,871,357. The financial institutions balances totaled $14,372,131 and are categorized by level of risk as follows: Category 1 -43- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Deposits - Continued Entity Total $ 14,487,703 - 40,037 $ 14,527,740 At February 28, 2005, the carrying amount of deposits, including cash on hand of $41,277 was $13,021,662. The financial institutions' balances totaled $14,527,740 and are categorized by level of risk as follows: Total Deposits its agent in the City's name Category 2 Deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name Category 3 Deposits uncollateralized and uninsured Deposits insured or collateralized with securities held by the City or by Category 1 -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued D. Investments Total Carr in One Two Three Fair Value $ 90,797,066 $ - $ - $ 90,797,066 230,292 - - 230,292 5,072,541 - - 5,072,541 +Illinois Funds 29,943,849 ^ Government Money Market Funds - - - 29,202,630 ^ Government Mutual Funds - - - 48,821,349 $ $96 099 899 $ - $ - $ 204 067 727 *$37,189,079 owned by pension trust funds. Not subject to risk categories Corporate Bonds City Category + The fair value of the position in the external investment pool is the same as the value of the pool shares and these investmentsare not subject to risk categorizationand conform to the Illinois Public Funds Act. The fund is managed by the financial institution in which it is held. Common Stock U.S. Government Securities* The City's investmentsat February 28, 2005 are categorized as follows to give an indication of the level of risk assumed by the City at year-end. ^ These investmentsare not subject to risk categories. The investmentobjectiveis to maintain a net asset value of $1.00 per share on a continuous basis. The fund will comply with SEC rules applicable to all money market Category Three - Uninsuredor unregisteredinvestmentsfor whichthe securities are heldby the counterparty in its trust department or agent, but not in the City's name. Category Two - Uninsured or unregistered investments for which the securities are held by the counterparty’s trust department or agent in the City's name. Category One - Investmentsthat are insured or registered or securities held by the City or its agent in the City's name. -45- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued D. Investments - Continued Township Total Carrying/ Fair Value $ 412,786 Total Carrying/ One Two Three Fair Value U.S. Government Securities $ 90,797,066 $ - $ - $ 90,797,066 Corporate Bonds 230,292 - - 230,292 Common Stock 5,072,541 - - 5,072,541 +Illinois Funds 30,356,635 ^Government Money Market Funds - - - 29,202,630 ^Government Mutual Funds - - - 48,821,349 $ 96,099,899 $ - $ - $ 204,480,513 Illinois Funds–not subject to risk Not subject to risk categories Entity Total ^ These investmentsare not subject to risk categories. The investmentobjectiveis to maintain a net asset value of $1.00 per share on a continuous basis. The fund will comply with SEC rules applicable to all money market funds. + The fair value of the position in the external investment pool is the same as the value of the pool shares and these investmentsare not subject to risk categorizationand conform to the Illinois Public Funds Act. The fund is managed by the financial institution in which it is held. Category funds. -46- 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 Unrestricted cash and equivalents $ 51,872,695 Unrestricted investments 49,944,702 Restricted cash and equivalents and investments 23,739,988 Total Cash and Investments – Primary Government 125,557,385 Fiduciary funds cash and equivalents 7,399,363 Fiduciary funds investments 84,545,427 Total Cash and Investments $ 217,502,175 Carrying amount of deposits – from Note 4 C $ 13,021,662 Investments – from Note 4 D 204,480,513 Total $ 217,502,175 The total of unrestricted cash and investments and restricted cash and investments from the Statement of Net Assets and fiduciary funds is reconciledto the precedingdeposit and investmentdisclosures(Notes 4C and 4D) as follows: -47- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 5. RECEIVABLES A. Summary of Receivables Washington Motor National Maple Vehicle Nonmajor General TIF Avenue Parking and Other Fund District Water Sewer Garage System Funds Total Receivables: Property taxes $ 14,497,497 $ - $ - $ - $ - $ - $ 23,694,787 $ 38,192,284 Accounts - - 1,988,330 2,543,657 - - - 4,531,987 Notes - - - - - - 5,450,629 5,450,629 Special assessments - - - - - - 649,243 649,243 Accrued interest 1,375 61,719 - 18,470 - - 290,526 372,090 Other 2,152,622 - - - - 11,052 220,952 2,384,626 Gross receivables 16,651,494 61,719 1,988,330 2,562,127 - 11,052 30,306,137 51,580,859 Less: allowance for uncollectibles 284,265 - - - - - 464,604 748,869 Net total receivables $ 16,367,229 $ 61,719 $ 1,988,330 $ 2,562,127 $ - $ 11,052 $ 29,841,533 50,831,990 Less Fiduciary Fund Accrued Interest Included in Nonmajor and Other Funds (248,812) Net total receivables - Statement of Net Assets $ 50,583,178 B. Notes Receivable – Special Revenue Funds Beginning Loans Loan End of of Year Made Repayments Year $ 4,648,623 $ 1,401,196 $ 654,690 $ 5,395,129 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: -48- 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, 2005 was as follows: Balance March 1, 2004 As Restated Additions Deletions End of Year Governmental activities: Capital assets, not being depreciated: Land $ 6,556,620 $ - $ - $ 6,556,620 Right of way 18,606,141 - - 18,606,141 Construction in progress 3,563,951 9,284,227 3,563,950 9,284,228 Total capital assets, not being depreciate 28,726,712 9,284,227 3,563,950 34,446,989 Capital assets, being depreciated: Buildings and improvements 76,477,157 400,740 - 76,877,897 Office equipment and furniture 5,696,745 4,932,751 - 10,629,496 Machinery and equipment 18,089,098 1,963,061 1,139,287 18,912,872 Infrastructure 73,165,617 5,855,557 214,776 78,806,398 Library collections 9,354,086 657,252 82,157 9,929,181 Capitalized leases 1,190,567 - - 1,190,567 Total capital assets being depreciated 183,973,270 13,809,361 1,436,220 196,346,411 Less accumulated depreciation for: Buildings and improvements 20,258,772 1,743,780 - 22,002,552 Office equipment and furniture 3,998,521 901,118 - 4,899,639 Machinery and equipment 11,937,840 1,532,312 923,098 12,547,054 Infrastructure 40,555,007 1,646,768 214,776 41,986,999 Library collections 5,905,676 1,383,245 82,157 7,206,764 Capitalized leases 1,190,567 - - 1,190,567 Total accumulated depreciation 83,846,383 7,207,223 1,220,031 89,833,575 Total capital net assets being depreciated, net 100,126,887 6,602,138 216,189 106,512,836 Governmental activities capital assets, net $ 128,853,599 $ 15,886,365 $ 3,780,139 $ 140,959,825 -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 6. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Beginning of Year Additions Deletions End of Year Business-type activities: Capital assets, not being depreciated: Land $ -$ Construction in progress 6,809,592 Total capital assets, not being depreciated 6,809,592 Capital assets, being depreciated: Land improvements 4,273 Buildings and improvements 3,880,731 Leasehold improvements - Plant 67,404 Transmission and distribution system 45,000 Sewer system and underground lines - Equipment 93,735 Parking meters - Total capital assets being depreciated 4,091,143 Less accumulated depreciation for: Land improvements 4,274 Buildings and improvements 2,576,996 Leasehold improvements - Plant 67,404 Transmission and distribution system 45,000 Sewer system and underground lines - Equipment 90,428 Parking meters - Total accumulated depreciation 2,784,102 Total capital net assets being depreciated, net 1,307,041 Business-type activities capital assets, net $ 8,116,633$ 241,656,639 264,856,918$ 241,022,921 257,467,197 15,506,354$ 1,350,386 275,543 38,413,317 620,365 4,157,637 253,567 8,711,431 3,655,417 19,388,971 26,663 4,851,399 1,940,759 80,962 820,622 15,853 689,724 573,266 1,283,274 2,486,769 157,540 237,714 8,089,111 3,127,151 16,902,202 24,229,620 29,586,234 188,719,150 1,967,905 31,428,772 302,752 3,386,672 3,297,937$ 23,200,279 19,902,342 3,297,937 16,444,276 13,146,339 183,856,301 3,390,945 35,309,503 29,293,745 22,751,004 - 302,752 - - -$ 13,565,595 13,565,595 2,015,840 448,851 277,368,941 280,069,956 448,851 - 6,792,158 543,677 5,914,011 248,880 36,346,020 359,893 1,523,616 4,862,849 45,800 -50- 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 $ 2,396,840 Public safety 447,125 Public works 1,830,704 Recreation and cultural opportunities 2,532,554 Total depreciation expense – governmental activities 7,207,223 Business – type activities: Water $ 1,296,208 Sewer 2,607,333 Maple Avenue Garage 685,553 Motor Vehicle Parking 262,305 Total depreciation expense – business – type activities 4,851,399 B. Construction Commitments $ 588,718 824,837 3,327,855 $ 4,741,410 Capital Improvement Fund Water Fund Sewer Fund Total Construction Commitments The value of construction contracts signed, where the work has not yet been performed at February 28, 2005, is as follows: -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS A. Interfund Accounts At February 28, 2005 interfund receivables and payables consist of the followin General Fun Emergency Telephone Syste $ $ Economic Developmen HOME Motor Fuel Tax Fleet Servic Insurance Community Development Block Gra Community Development Loa Washington National Tax Increment Distric Cental Business Tax Increment Distric General Obligation Deb Cental Business Tax Increment Distric Capital Improvement Maple Avenue Garag Motor Vehicle Parking Syste Water Sewer Firefighters Pensio Police Pensio Total General Fun Special Revenue Fund Economic Developmen General Special Service District No. Community Development Block Gra Total Economic Developmen Emergency Telephone Syste General eighborhood Improvemen Capital Improvement Special Service District No. 4 Special Service District No. Water Total Special Service District No. Continue 500,000 - 921 - 31,886 - 30,965 - 4,669 86 566,032 - 32,606 - - - - 194,991 34,800 - 25,448 50,260 208 Due to Other Funds 2,817 - - 86 200 - - - Other FundsFunds - - - 58,900 2,641 331,372 4,799 - - 2,135 - 113,100 Due from The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. - 1,255,378 44,332 392,402 2,407,301 - 454,795 24,789 - - - 2,817 5,000 - - -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Special Revenue Funds - Continue Motor Fuel Tax General $$ HOME General Community Development Block Gra Total HOM Community Development Block Gra General Community Development Loa Economic Developmen HOME Capital Improvements Total Community Development Block Grant Community Development Loan Community Development Block Grant General Total Community Development Loan Employer Pension Contribution Firefighters Pension Police Pension Total Employer Pension Contribution Total Special Revenue Funds Debt Service Funds General Obligation Debt General Water Washington National Tax Increment District General Special Service District No. 5 Economic Development Special Service District No. 4 Total Special Service District No. 5 Total Debt Service Funds Continue - 5,000 12,710 113,100 - - 38,931 56,641 3,190,597 - - 1,308,102 - 205,200 - - 2,641 - - 331,372 Due to 12,710 207,641 - 125,810 - 205,000 Other Funds 593,213 - - - 1,011,867 1,280,701 1,255,378 2,292,568 - - 58,900 1,333,812 24,789 200 - 205,000 - Due from Funds Other Funds 25,710 921 - 1,364,538 - -53- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Capital Projects Funds Central Business Tax Increment District General $ $ Washington National Tax Increment District Total Central Business Tax Increment District Washington National Tax Increment District Maple Garage Central Business Tax Increment District Total Washington National Tax Increment District Capital Improvements Special Assessment Community Development Block Grant Neighborhood Improvement General Total Capital Improvements Special Assessment Capital Improvements Total Capital Projects Funds Enterprise Funds Water General Special Service District No. 4 General Obligation Debt Sewe Total Water Motor Vehicle Parking System General Fleet Maple Avenue Garage Total Motor Vehicle Parking System Sewer General Water Total Sewer Continue - 319,710 1,308,102 - 1,308,102 208 - 1,500,000 56,173 10,070 - - - 38,931 34,800 4,669 - 25,448 - 253,945 - 2,194,991 38,931 - 85,538 244 253,945 30,965 2,205,061 1,595,312 - 500,000 - - 10,070 10,070 - 194,991 85,538 4,669 Other FundsFunds Due from Due to - 46,103 - 1,500,000 - 25,692 - 253,945 Other Funds - 208 -54- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued A. Interfund Accounts - Continued Enterprise Funds - Continued Maple Avenue Garage General $ $ Motor Vehicle Parking System Washington National Capital Project Total Maple Avenue Garage Total Enterprise Funds Internal Service Funds Fleet Services General Parking Total Fleet Services Insurance General Total Internal Service Funds Trust and Agency Funds Firefighters Pensio Genera Police Pension Employer Pension Contribution Total Firefighters Pension Police Pension General Special Assessment Agency Firefighters Pension Employer Pension Contribution Total Police Pension Special Assessment Agency Police Pension Total Trust and Agency Funds Total All Funds Less amounts eliminated during GASB 34 implementation Less total Firefighters and Police Pension Total Primary Government (3,392,237) (3,392,237) - 244 - 2,380,350 10,387,888 1,261,589$ 2,135 1,261,589$ 4,799 - 244 6,934 Due from 85,538 44,332 Due to 454,795 - 454,815 1,099,649 - 20 - 1,280,701 - 1,099,649 Other Funds 46,103 46,103 - - Funds 456,020 1,717,609 129,870 4,799 Other Funds 392,402 1,492,051 - - 244 1,011,867 - 1,011,867 - 20 - 3,392,237 (5,734,062) 10,387,888 (5,734,062) 1,946,866 -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued B. Interfund Transfers At February 28, 2005 transfers in / out consist of the following: General Fund Motor Fuel Tax $$ Mayor’s Special Housing Washington National Tax Increment District Howard Hartrey Tax Increment District Southwest Tax Increment District General Obligation Debt Central Business Tax Increment District Capital Improvements Special Assessment Maple Avenue Garage Water Total General Fund Special Revenue Funds Economic Development Maple Avenue Garage Neighborhood Improvement Capital Improvements Mayor’s Special Housing General CD Loan HOME HOME Community Development Loan Motor Fuel Tax General Total Special Revenue Funds Continued 200,000 Transfers 125,000 Funds In 257,500 30,900 Transfers 30,900 Out 750,000 Transfers are used to 1) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest paymentsbecome due, 2) move restricted amounts from borrowings to the debt service fund to establish mandatoryreserve 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. 133,900 175,000 314,560 20,600 300,000 2,615,200 4,264,000 689,560 - 650,000 - 500,000 - - 40,190 30,900 40,190 - - 750,000 40,190 1,971,090 -56- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Debt Service Funds General Obligation Debt General Capital Improvements Special Assessment Water Total General Obligation Debt Cental Business Tax Increment District General $ $ Maple Avenue Garage Washington National Tax Increment District Total Cental Business Tax Increment District Southwest Tax Increment District General Howard Hartrey Tax Increment District General Washington National Tax Increment District General Cental Business Tax Increment District Total Washington National Tax Increment District Total Debt Service Funds Capital Projects Capital Improvements Sewer General Obligation Debt Water Neighborhood Improvement General Total Capital Improvements Special Assessment General General Obligation Debt Total Special Assessment Total Capital Projects Funds Continued 8,696,246 500,000 500,000 8,412,291 - 30,900 - - 354,791 2,090,948 253,055 - 1,308,102 - Transfer Transfer 4,000,000 - 845,315 175,000 - - 354,791 - - 5,145,315 - Funds In Out - 300,000 - 20,600 - 125,000 - 133,900 845,315 - 845,315 133,900 - 4,000,000 2,936,263 5,424,815 - 4,000,000 500,000 - - 57,500 - 253,055 283,955 -57- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7. INTERFUNDS - Continued B. Interfund Transfers - Continued Enterprise Funds Water General $ $ Capital Improvements Insurance General Obligation Debt Total Water Motor Vehicle Parking System Fleet Sewer Capital Improvements Insurance Total Sewer Maple Avenue Garage General Economic Development Cental Business Tax Increment District Total Maple Avenue Garage Total Enterprise Funds Internal Service Funds Fleet Motor Vehicle Parking System Insurance Water Sewer Total Insurance Total Internal Service Funds Total All Funds Less amounts eliminated during GASB 34 implementation Total Primary Government $ $ 4,000,000 - 12,273,302 12,964,560 314,560 - 650,000 - - 350,000 4,000,000 7,923,302 Funds In Transfer Transfer 4,000,000 - 2,615,200 Out - 1,308,102 - - 4,000,000 4,000,000 4,000,000 - 4,000,000 1,243,758 1,243,758 4,964,560 - 350,000 - (27,811,255) (27,811,255) 4,000,000 - 29,055,013 4,000,000 - - 4,000,000 - 29,055,013 8,350,000 - 8,000,000 -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 8. OPERATING LEASES Minimum annual lease payments are as follows: Fiscal year ending 2006 $ 158,179 Fiscal year ending 2007 158,179 Fiscal year ending 2008 140,020 Fiscal year ending 2009 74,744 Fiscal year ending 2010 3,157 $ 534,279 The City has various operating leases covering the rental of several digital office copiers from the Toshiba America InformationSystems, Document Vision Technologies,and GE Capital. The copiers are located in the Evanston Civic Center, Library, Recreation facilities, Water Department, and the Evanston Police and Fire Statio Paymentson existing leases include 9 copiers for the Civic Center (monthlypaymentof $776), 3 copiers for Parks/Forestry& Recreation (monthly payment of $2,626), 2 copiers each for the Police Department and Recreation (monthly payment of $1,757), and 1 copier for the Fire Department (monthly payment of $410 The lease of 9 copiers for the Library (monthlypayment of $1,486) was terminated in February 2004 and replaced with new contract as indicated above, and 2 copiers for Parks/Forestry & Recreation with a monthlypayment of $1,062 was terminated in February 2004 replaced with new contract as indicated above. During the 2005 fiscal year, the City renewed and signed new lease agreements for copiers. The City renewed the leases for the existing 8 copiers and added 1 copier for the Library from GE Capital, with a 60 - month term starting February 2004 (monthlypaymentof $1,789), 4 copiers for the Police Department from GE Capital with a 60 - month term starting February 2004 (monthlypaymentof $1,930 and $247), 1 copier for the Hearings Division from Document Vision Technologies with a 60 - month term starting June 2003 (not added in last year's CAFR) (monthly payment of $190), 1 copier for the Budget Department from Document Vision Technologies with a 60 - month term starting April 2003 (not added in last year's CAFR) (monthlypayment of $490), 1 copier for the Water Department from Document Vision Technologies with a 36 - month term starting December 2004 (monthly payment of $305), 3 copiers for Fleet Services from GE Capital with a 36 - month term starting March 2004 (monthly payment of $600), 1 copier for the Chandler Center from GE Capital with a 60 - month term starting September 2004 (monthly payment of $302), and 2 copiers for Parks/ Forestry and Recreation with a 60 - month term starting February 2004 (monthly payment of $1,759). -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 2004 Adjusted Service Funds 2005 One Year Governmental activities General obligation bonds/corporate purpose bonds Series 1995 5.20%-5.70% 12/1/2015 $ 665,000 $ - $ 665,000 $ - $ - Series 1996 4.20%-5.70% 12/1/2016 2,020,000 - 980,000 1,040,000 1,040,000 Series 1997 5.00%-5.50% 12/1/2017 30,095,000 - 13,435,000 16,660,000 2,260,000 Series 1998 4.80%-4.875% 12/1/2018 8,860,000 - 560,000 8,300,000 600,000 Series 1999 4.25%-5.00% 12/1/2019 35,770,000 - 1,710,000 34,060,000 2,165,000 Series 2000 Variable Rate 12/1/2021 35,200,000 - 3,400,000 31,800,000 31,800,000 Series 2002A Variable Rate 12/1/2018 29,500,000 - - 29,500,000 29,500,000 Series 2002B Variable Rate 12/1/2005 5,500,000 - - 5,500,000 5,500,000 Series 2002C 5.00%-5.80% 1/1/2022 18,800,000 - 4,845,000 13,955,000 1,290,000 Series 2003 2.00%-5.00% 1/1/2010 12,845,000 - 2,560,000 10,285,000 2,540,000 Series 2003B 2.00%-5.25% 1/1/2023 11,485,000 - 415,000 11,070,000 80,000 Series 2004 2.00%-5.00% 12/1/2023 - 13,355,000 13,355,000 130,000 Series 2004B 2.00%-5.25% 12/1/2017 - 11,730,000 145,000 11,585,000 - Total general obligation bonds/corporate purpose bonds 190,740,000 25,085,000 28,715,000 187,110,000 76,905,000 Less: Business-type activity bonds (49,175,000) - (5,520,000) (43,655,000) (19,370,000) Total governmental activity bonds 141,565,000 25,085,000 23,195,000 143,455,000 57,535,000 Unamortized bond expenses and discount (1,186) - (1,186) - - Special Service District #5 Series 2002C rfndg 1996 5.00%-5.80% 1/1/2016 3,550,000 105,000 3,445,000 110,000 Bonds 1995 4.30 - 5.90% 12/1/2015 280,000 - 135,000 145,000 145,000 Total special service district # 5 bonds 280,000 3,550,000 240,000 3,590,000 255,000 Developer's agreement notes payable 6.10% 2/23/2005 333,334 - 333,334 - - Bonds premium liability 2,538,052 638,735 230,055 2,946,732 - Pension contributions 10,717,096 665,733 - 11,382,829 7,315,954 Compensated absences payable- City 8,366,698 413,020 1,739,848 7,039,870 552,100 Claims payable 28,165,652 (9,284,855) 6,184,013 12,696,784 9,731,084 Governmental activity Long-term liabilities $191,964,646 $21,067,633 $31,921,064 $181,111,215 $75,389,138 -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 2004 Adjusted Funds 2005 One Year Business-type Activities General obligation bonds/corporate purpose bonds Sewer $24,305,000 $- $1,810,000 $22,495,000 $ 1,925,000 Maple Avenue Garage 20,100,000 - 3,200,000 16,900,000 16,900,000 Parking System 4,770,000 - 510,000 4,260,000 545,000 Total general obligation bonds/corporate purpose bonds 49,175,000 - 5,520,000 43,655,000 19,370,000 Unamortized bond expenses and discount (79,956) - (28,594) (51,362) - Water Fund revenue bonds Series 1997 4.00-4.30%1/1/2006 775,000 - 365,000 410,000 410,000 Series 1999 4.125-4.375%1/1/2014 2,535,000 - 210,000 2,325,000 220,000 Series 2002 2.00-3.75%1/1/2012 2,070,000 - 230,000 1,840,000 235,000 Total Water Fund revenue bonds 5,380,000 - 805,000 4,575,000 865,000 Sewer Fund – Illinois Various Environmental Protection Through Agency loans 2.535-3.59%11/26/2021 99,653,404 7,901,213 5,354,606 102,200,011 5,953,538 Compensated absences payable- City 462,331 62,342 70,435 454,238 454,238 Business-type activity long-term liabilities $ 154,590,779 $ 7,963,555 $ 11,721,447 $ 150,832,887 $ 26,642,776 -61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued B. General Obli ation Bonds Pa able Annual debt service requirements to maturity for general obligation bonds are as follow Year Ending February 28 Principal Interest Principal Interest 2006 $57,535,000 $ 5,499,342 $ 19,370,000 $ 2,323,367 2007 6,765,000 3,706,794 2,635,000 1,445,218 2008 6,670,000 3,472,764 2,785,000 1,282,325 2009 5,415,000 3,216,629 2,980,000 1,109,885 2010 5,535,000 3,022,240 3,170,000 925,328 2011-2015 31,470,000 11,785,382 11,315,000 2,060,810 2016-2020 20,780,000 5,229,706 1,400,000 169,194 2021-2025 9,285,000 1,024,913 - - Total $143,455,000 $ 36,957,770 $ 43,655,000 $ 9,316,126 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 Governmental Activities Business-type Activities General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 20-ear serial bonds with e ual amounts of rinci al maturin each ea 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 $507,712 due to the swap agreement. Additional payments for the remainder of the agreement are estimated at approximately $153,000. 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 ca rate of 4.75 effective December 1 2002 throu h November 30 On May 13, 2004, the City issued Series 2004 $13,355,000 in General Obligation bonds at a net interest cost of 4.6291740%. The proceedsare being used to partially finance the City's Long - Range Capital ImprovementProgram and S ecial Assessment Alle ro ra On 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 -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued 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 2006 $ 255,000 $ 183,749 2007 265,000 170,563 2008 285,000 157,313 2009 295,000 143,063 2010 305,000 128,313 2011-2015 1,780,000 393,625 2016-2020 405,000 21,263 Total $ 3,590,000 $ 1,197,886 D. Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follow Year Ending February 28 Principal Interest 2006 $ 865,000 177,355 2007 470,000 145,088 2008 485,000 128,713 2009 510,000 110,913 2010 525,000 91,556 2011-2015 1,720,000 159,988 Total $ 4,575,000 $ 813,611 E. Notes Payable - Sewer IEPA Loans 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 As of February 28, 2005, the City currently has 23 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 accrued during 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 -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued E. Notes Pa able - Sewer IEPA Loans - Continued Notes payable – Sewer IEPA debt service requirements to maturity are as follow Year Ending February 28 Principal Interest 2006 $ 5,953,538 $ 2,743,747 2007 6,372,036 2,679,152 2008 6,560,609 2,490,494 2009 6,754,849 2,296,167 2010 6,954,928 2,095,999 2011-2015 35,520,979 7,314,190 2016-2020 24,747,261 2,844,832 2021-2025 9,100,614 519,262 2026-2030 235,197 3,022 Total $ 102,200,011 $ 22,986,865 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 ######### Series 1996 $ 1,040,000 1997 16,660,000 Business-type Activities 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 In 1999, the City defeased a portion of Series 1994, Series 1995, and Series 1996 Corporate Purpose bonds, by placing a portion of the proceeds of Series 1999 Bonds in an irrevocable trust to provide for the advance refundingof 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 2005 the followin remainin outstandin balances are considered defease The outstanding balances of Series 1996 and 1997, not defeased at February 28, 2005, are recorded as a liability in the Cit ’s financial statements. Those balances are as follow -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 9. LONG-TERM DEBT - Continued G. Industrial Revenue Bonds 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 - The City has, in the past, issued industrial revenue development bonds for the benefit of certain organizations. The City has no obligation for this debt. No liability for the bonds is recorded in the City’s financial statements. The entire amount of all such obli ations were aid off durin the 2005 fiscal ea Depreciation, Improvement and Extension - The account shall accumulate$5,100 per month or a greater amount as may be designated by the City Council. The monies shall be used first to provide an adequate allowance for depreciation, and may be used to pay for any extraordinary maintenance, repairs, and necessary replacements for 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 not 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: -65- 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 $ 447,032 Reserved for Arts Council 34,375 Reserved for private elm trees 81,002 Reserved for Butterfield sculpture 31,833 Reserved for scholarship contributions 35,453 Reserved for public library acquisitions 205,535 Reserved for recreation group activities 159,450 Reserved for IMRF 3,200,000 Reserved for Compensated absences 2,576,360 Other reserves 1,176,812 Total General Fund 7,947,852 Special Revenue Funds Reserved for notes receivable 5,395,129 Debt Service Funds Reserved for debt service 25,310,099 Capital Project Funds Reserved for notes receivable 55,500 Total Reserved Fund Equity - Governmental Funds $38,708,580 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: -66- 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 $ 38,327,422 Police Pension Fund Restriction for employee pension benefits 55,269,914 Total Fiduciary Funds $93,597,336 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 $ 318,496 Special Revenue Fund Specific Capital Project Motor Fuel Tax 2,399,777 Librar 2,261,939 Total Special Revenue Fund 4,661,716 Capital Projects Fund Specific capital project Capital Improvement 14,347,402 Central Business Tax Increment Distric 4,215,648 Special Assessment 1,048,364 Washington National Tax Increment Distric 25,202,812 Total Capital Projects Fund 44,814,226 Unrestricted Fund Equity - Designate $ 49,794,438 The Township has no designated unrestricted fund equity. -67- 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 levy for 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 2004 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. -68- 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 01, 2003 $ 1,696,712 $ 21,242,999 $ 22,939,711 New claims and/or estimate revisions 717,986 5,144,300 5,862,286 Claims payments (358,546) (277,800) (636,346) February 28, 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 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. 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. -69- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 13. SUBSEQUENT EVENTS NOTE 14. CONTINGENCIES NOTE 15. JOINT VENTURES A. Northwestern University 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. 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 2005 $29,270,000 general obligationbonds in July 2005. The distribution of proceedsare as follows: $13,060,000 for the Sherman Plaza garage, $10,005,000 to partially finance the City's long - range capital improvement program, and $6,205,000 to advance refund the City's outstanding General Obligation Corporate Purpose bonds, Series 1998. 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. -70- 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 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. As of December 31, 2003, the decision has been made to dissolve the organization. The remaining assets of $27,500 are to be divided among the interested parties. The City's Corporation Counsel plans to file necessary court documents to dissolve the organization. This is expected to be completed by December 31, 2005. There was no activity between December 31, 2002 and December 31, 2004, 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. 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. 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. -71- 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, 2004: Current assets $ 7,843,368 Restricted assets 3,735,009 Property, plant, and equipment 15,011,522 Debt issuance costs, net 228,764 Total assets $26,818,663 Current liabilities $ 8,042,074 Long-term debt, net of unamortized discount 9,577,634 Invested in capital assets, net of related debt 1,793,888 Restricted for debt service, net of accrued interest 3,633,342 Unrestricted net assets 3,771,725 Total liabilities and fund equity $26,818,663 Summary of Revenues and Expenses for the Year Ended April 30, 2004: Total revenues $ 14,555,383 Total expenses (15,169,516) Net (loss)$(614,133) 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. -72- 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, 2004: Cash and cash equivalents $ 2,917,945 Mortgage loans receivable 170,609 Total assets 3,088,554 Payables and accrued expenses 24,554 Notes payable 3,064,000 Total liabilities 3,088,554 Net Assets $- The Corporation is governed by a Board of Directors of ten people, four of whom are selected by the City. The Board has the authority to approve the annual budget and to arrange for the management of the affairs of the Corporation. The City has no 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. The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2004 are summarized as follows: 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. -73- 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, 2004: Total revenues $ 48,151 Total operating expenses (48,151) Excess of revenues over expense $ - NOTE 16. DEFERRED COMPENSATION PLAN Plan balance at February 28, 2005 $26,625,516 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. 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. -74- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund A. Plan Description The Employer Pension Contribution Fund is a special revenue fund and uses the modified accrual basis of accounting. The tax revenues are recognized when measurable and available. The expenditures are recorded when the liability is incurred, which is when the revenue is recognized. 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 2004 and 2003 were 3.97% and 1.74%, respectively, of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. 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 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 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. -75- 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, 2004 was $52,093,638. Of this amount, $29,568,219 in payroll earnings were reported to and coveredby the IMRF system. The Township’s total payroll for the year ended December 31, 2003 was $345,639. Of this amount, $345,639 in payroll earnings were reported to and covered by the IMRF plan. For December31, 2004, the City’s annual pension cost of $1,173,858 was equal to the City’s required and actual contributions. The required contribution was determined as part of the December 31, 2000 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 2004 actuarial valuation were based on the 1999-2001 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, 2004 was 10 years. -76- 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 12/31/04 $ 1,173,858 100% - 12/31/03 508,785 100% - 12/31/02 285,616 100% - Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/03 $ 3,767 100% - 12/31/02 4,302 100% - 12/31/01 7,491 100% - Three-Year Trend Information for IMRF - Township Three-Year Trend Information for IMRF - City For December31, 2003, the Township’s annual pension cost of $3,767 was equal to the Township’s requiredand actual contributions. The required contribution was determined as part of the December 31, 2001 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 2003 actuarial valuation were based on the 1999-2001 experience study. -77- 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, 2005 was: Police Firefighters' Retirees, disabled participants and beneficiaries of deceased retirees currently receiving benefits 140 106 Active plan members 158 110 Total 298 216 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, 2005 was $10,217,000 and $7,376,000, respectively. -78- 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 firefighter who retires or is separated from the service after accumulating at least eight years for a police officer and 10 years for a firefighter, but less than 20 years of creditable service, will receive a monthly pension after attaining the age of 60 based on the salary attached to the rank held for one year immediately prior to retirement or separation in the case of a police officer and at the date of retirement or separation in the case of a firefighter. The amount of the benefit is a tabular percentage of such salary ranging from 15% for 10 years of service to 50% for 20 years of service. These benefit provisions and all other requirements are established by state statute. 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. -79- 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 $ 4,274,043 $ 3,041,911 Interest on net pension obligation 513,554 290,214 Adjustment to annual required contribution (426,379) (240,951) Annual pension cost 4,361,218 3,091,174 Contributions made (3,878,455) (2,908,004) Increase in net pension obligation 482,763 183,170 Net pension obligation at March 1, 2003 6,847,380 3,869,516 Net pension obligation at February 29, 2004 $ 7,330,143 $ 4,052,686 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, 2004) 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. -80- 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 2/29/04 $ 4,361,218 107.87 % 7,330,143$ 2/28/03 3,595,566 99.02 6,847,380 2/28/02 3,316,227 98.10 6,535,390 Firefighters' 2/29/04 $ 3,091,174 106.37 % 4,052,686$ 2/28/03 2,733,813 100.63 3,869,516 2/28/02 2,404,827 99.04 3,555,970 The required supplementary information immediately follows the Notes to the Financial Statements. -81- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. 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 4,309,419$ 3,068,891$ 7,378,310$ Receivables Accrued interest 70,588 178,224 248,812 Due from other funds 1,011,867 2,380,350 3,392,217 1,082,455 2,558,574 3,641,029 Investments, at fair value U.S. Government obligations 14,804,243 22,384,836 37,189,079 Common stock 5,072,541 - 5,072,541 Mutual funds 14,568,300 27,715,507 42,283,807 34,445,084 50,100,343 84,545,427 39,836,958 55,727,808 95,564,766 Liabilities Vouchers payable 17,485 3,079 20,564 Due to other funds 1,492,051 454,815 1,946,866 1,509,536 457,894 1,967,430 Net assets held in trust for pension benefits 38,327,422$ 55,269,914$ 93,597,336$ -82- 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 2,886,884$ 3,728,728$ 6,615,612$ Plan members 676,177 998,851 1,675,028 3,563,061 4,727,579 8,290,640 Investment income Net appreciation in fair value of investments 548,075 730,829 1,278,904 Interest 912,985 1,276,480 2,189,465 Total investment income 1,461,060 2,007,309 3,468,369 Less investment expense 128,377 109,625 238,002 Net investment income 1,332,683 1,897,684 3,230,367 4,895,744 6,625,263 11,521,007 Deductions Benefits 3,571,167 5,151,510 8,722,677 Refunds of contributions - 124,768 124,768 Administrative expense 25,910 41,738 67,648 Total deductions 3,597,077 5,318,016 8,915,093 Net increase 1,298,667 1,307,247 2,605,914 Net assets held in trust for pension benefits Beginning of year 37,028,755 53,962,667 90,991,422 End of year 38,327,422$ 55,269,914$ 93,597,336$ -83- 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 3/1/2004 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 3/1/2004 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) 12/31/2004 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% 12/31/1995 38,365,142 43,076,322 4,711,180 89.06% 18,797,530 25.06% 12/31/1994 32,660,180 42,190,567 9,530,387 77.41% 18,484,399 51.56% Illinois Municipal Retirement Fund (Township) 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 - 12/31/1994 434,467 358,078 (76,389) 121.33% 309,431 - 12/31/1993 374,609 285,803 (88,806) 131.07% 285,721 - Information in this table has been presented for as many years as available. February 28, 2005 Actuarial Accrued Liability (AAL) Projected Unit Credit (b) Unfunded AAL (UAAL) (b-a) -84- 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 2004 3,041,911$ N/A 4,274,043$ N/A 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% 1995 2,126,012 99.10% 2,469,918 101.56% 1994 1,963,252 100.86% 2,293,336 100.87% February 28, 2005 Firefighters' Pension Fund Police Pension Fund -85- 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, 2005 Original and Final Budget Actual Variance Revenues Taxes $38,190,100 $ 39,568,444 $ 1,378,344 Licenses and permits 6,238,700 6,773,407 534,707 Intergovernmental 14,310,100 14,732,805 422,705 Charges for services 6,231,400 6,052,956 (178,444) Fines 4,167,500 3,999,105 (168,395) Investment income 200,000 192,461 (7,539) Miscellaneous 4,623,200 8,102,267 3,479,067 Total Revenues 73,961,000 79,421,445 5,460,445 Expenditures General management and support 11,628,300 12,342,855 (714,555) Public safety 27,814,800 28,704,144 (889,344) Public works 11,325,000 11,909,910 (584,910) Health and human resource development 5,344,800 5,196,804 147,996 Recreation and cultural opportunities 14,943,000 15,384,676 (441,676) Housing and economic development 2,787,400 2,927,543 (140,143) Pensions 4,006,700 1,371,992 2,634,708 Total Expenditures 77,850,000 77,837,924 12,076 (Deficiency) of Revenues (under) Expenditures (3,889,000)1,583,521 5,472,521 Other Financing Sources (Uses) Operating transfers in (out) Motor Fuel Tax Fund 750,000 750,000 - Housing Fund 30,900 30,900 - Downtown TIF Debt Service Fund 300,000 300,000 - Washington National TIF Debt Service Fund 133,900 133,900 - Southwest TIF II Debt Service Fund 125,000 125,000 - Southwest TIF I Debt Service Fund 20,600 20,600 - Maple Avenue Garage (314,560)(314,560) Capital Improvement Fund 257,500 257,500 Special Assessment Capital Project Fund 30,900 30,900 - Water Fund 2,615,200 2,615,200 - Capital Improvement Fund (200,000) (200,000)- General Obligation Debt Service Fund (175,000) (175,000)- 3,889,000 3,574,440 (314,560) Excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses -$ 5,157,961 5,157,961$ Fund Balance Beginning of year 26,821,088 End of yea 31,979,049$ -86- CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 1. FIREFIGHTERS' AND POLICE PENSION FUNDS The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Firefighters' Pension Fund Valuation date March 1, 2004 Actuarial cost method Projected Unit Credit Amortization method Level percentage of payroll, closed period Remaining amortization period 30 years Asset valuation method Fair market value 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 Community Development Block Grant $ 2,725,859 $ 2,549,932 $ 175,927 Central Business Tax Increment District 1,241,669 729,500 512,169 Howard Hartrey Tax Increment District 883,620 875,713 7,907 Special Service District No. 5 481,669 152,686 328,983 March 1, 2004 Projected Unit Credit Police Pension Fund Level percentage of payroll, closed period The followingCity funds had an excess of actual budgetary expenditures over original and final budget for the year ended February 28, 2005: The actuarial assumptions used to determinethe actuarial accrued liability for 2004 are based on the 1999- 2001 Ex erience Stud . - Fewer members are expected to take refunds early in their career. 30 years Fair market value -87- 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 HOME - to account for the activity of the HOME program. Financing is provided by the federal government. Expenditures are made in accordance with the requirements of federal law. Community Development Block Grant - to account for revenues and expenditures of the community block grant program. Financing is provided by the federal government on a reimbursement basis in accordance with federal formula. Expenditures are made in accordance with requirements of federal law. 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. 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. 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. Township Funds Town - to account for general adminstrative services. Debt Service funds are used to account for the servicing of general long-term debt. 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. Washington National Tax Increment District - to account for the design and building of a new Sherman Plaza garage financed primarily by general obligation bond proceeds. 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. Central Business Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Southwest Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Howard Hartrey Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Washington National Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Special Revenue Funds - Continued 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. 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 1,904,230$ 944,335$ 2,380,359$ 58,276$ Investments - - - 2,200,731 Receivables Property taxes (net of allowance) Current year levy - - - - Notes - - - - Allowance - - - - Special assessments - - - - Accrued interest - - - 2,932 Other - 20,925 139,999 - Due from other governments 164,175 - - - Due from other funds 331,372 - - - Total Assets 2,399,777$ 965,260$ 2,520,358$ 2,261,939$ Liabilities Vouchers payable -$ 10,811$ 14,648$ -$ Accrued payroll - 2,110 5,319 - Other - - - - Due to other governments - - - - Due to other funds - 32,606 86 - Unearned revenues - - - - Total Liabilities - 45,527 20,053 - Fund Balances Reserved for notes receivable - - - - Reseved for debt service - - - - Unreserved Capital projects 2,399,777 - - 2,261,939 Undesignated - 919,733 2,500,305 - Total Fund Balances 2,399,777 919,733 2,500,305 2,261,939 Total Liabilities and Fund Balances 2,399,777$ 965,260$ 2,520,358$ 2,261,939$ Liabilities and Fund Balances - 88 - Assets February 28, 2005 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 522,498$ 281,513$ 124,552$ 1,167$ 635,912$ 939$ -$ 6,853,781$ - - - - - - - 2,200,731 - - - - - 247,205 6,589,799 6,837,004 - 1,413,766 2,499,526 12,799 1,469,038 - - 5,395,129 - - - - - - - - - - - - - - - - - - - - - - - 2,932 - - - - - - - 160,924 - - 55,537 316,878 - - - 536,590 - - - 56,641 205,200 - - 593,213 522,498$ 1,695,279$ 2,679,615$ 387,485$ 2,310,150$ 248,144$ 6,589,799$ 22,580,304$ -$ 1,500$ 7,025$ 163,669$ 22,826$ -$ -$ 220,479$ - - - 3,376 - - - 10,805 - - - - (391) - - (391) - - - - - - - - 500,000 - 125,810 207,641 - 31,886 2,292,568 3,190,597 - - - - - 141,157 4,297,231 4,438,388 500,000 1,500 132,835 374,686 22,435 173,043 6,589,799 7,859,878 - 1,413,766 2,499,526 12,799 1,469,038 - - 5,395,129 - - - - - - - - - - - - - - - 4,661,716 22,498 280,013 47,254 - 818,677 75,101 - 4,663,581 22,498 1,693,779 2,546,780 12,799 2,287,715 75,101 - 14,720,426 522,498$ 1,695,279$ 2,679,615$ 387,485$ 2,310,150$ 248,144$ 6,589,799$ 22,580,304$ Continued - 89 - Special Revenue CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Total Town General Township Fund Assistance Funds Total Cash and equivalents 198,838$ 364,253$ 563,091$ 7,416,872$ Investments - - - 2,200,731 Receivables Property taxes (net of allowance) Current year levy 215,030 560,513 775,543 7,612,547 Notes - - - 5,395,129 Allowance - - - - Special assessments - - - - Accrued interest - - - 2,932 Other - 31,736 31,736 192,660 Due from other governments - - - 536,590 Due from other funds 173,962 - 173,962 767,175 Total Assets 587,830$ 956,502$ 1,544,332$ 24,124,636$ Liabilities Vouchers payable 25,276$ 47,538$ 72,814$ 293,293$ Accrued payroll - - - 10,805 Other - - - (391) Due to other governments - 4,525 4,525 4,525 Due to other funds - 173,962 173,962 3,364,559 Unearned revenues 196,436 511,322 707,758 5,146,146 Total Liabilities 221,712 737,347 959,059 8,818,937 Fund Balances Reserved for notes receivable - - - 5,395,129 Reseved for debt service - - - - Unreserved Capital projects - - - 4,661,716 Undesignated 366,118 219,155 585,273 5,248,854 Total Fund Balances 366,118 219,155 585,273 15,305,699 Total Liabilities and Fund Balances 587,830$ 956,502$ 1,544,332$ 24,124,636$ Liabilities and Fund Balances - 90 - Assets February 28, 2005 Special Revenue Central Howard Washington Special Business Southwest Hartrey National General Service Tax Tax Tax Tax Obligation District Increment Increment Increment Increment Debt No.5 District District District District Total 962,089$ 23,156$ 7,604,587$ 590,086$ 1,765,233$ 5,055,513$ 16,000,664$ 3,023,202 - - - - - 3,023,202 7,431,205 427,951 4,998,705 577,515 1,199,891 982,369 15,617,636 - - - - - - - - - - - - - - - - - - - - - 4,583 - - - - - 4,583 - - - - - - - - - - - - - - 1,308,102 25,710 - - - - 1,333,812 12,729,181$ 476,817$ 12,603,292$ 1,167,601$ 2,965,124$ 6,037,882$ 35,979,897$ 2,634$ -$ 5,976$ -$ -$ 8,653$ 17,263$ - - - - - - - - - - - - - - - - - - - - - 1,255,378 - 50,260 - - 58,900 1,364,538 4,792,810 242,155 2,753,141 307,571 691,665 500,655 9,287,997 6,050,822 242,155 2,809,377 307,571 691,665 568,208 10,669,798 - - - - - - - 6,678,359 234,662 9,793,915 860,030 2,273,459 5,469,674 25,310,099 - - - - - - - - - - - - - - 6,678,359 234,662 9,793,915 860,030 2,273,459 5,469,674 25,310,099 12,729,181$ 476,817$ 12,603,292$ 1,167,601$ 2,965,124$ 6,037,882$ 35,979,897$ Continued - 91 - 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 7,653,620$ 3,229,672$ 2,548,364$ 13,431,656$ 36,849,192$ Investments 4,984,764 989,930 - 5,974,694 11,198,627 Receivables Property taxes (net of allowance) Current year levy - - - - 23,230,183 Notes 55,500 96,649 - 152,149 5,547,278 Allowance - (96,649) - (96,649) (96,649) Special assessments - - 649,243 649,243 649,243 Accrued interest 34,199 - - 34,199 41,714 Other 300 - - 300 192,960 Due from other governments - - - - 536,590 Due from other funds 2,194,991 10,070 - 2,205,061 4,306,048 Total Assets 14,923,374$ 4,229,672$ 3,197,607$ 22,350,653$ 82,455,186$ Liabilities Vouchers payable 481,541$ 13,816$ -$ 495,357$ 805,913$ Accrued payroll - - - - 10,805 Other - - - - (391) Due to other governments - - - - 4,525 Due to other funds 38,931 208 1,500,000 1,539,139 6,268,236 Unearned revenues - - 649,243 649,243 15,083,386 Total Liabilities 520,472 14,024 2,149,243 2,683,739 22,172,474 Fund Balances Reserved for notes receivable 55,500 - - 55,500 5,450,629 Reseved for debt service - - - - 25,310,099 Unreserved Capital projects 14,347,402 4,215,648 1,048,364 19,611,414 24,273,130 Undesignated - - - - 5,248,854 Total Fund Balances 14,402,902 4,215,648 1,048,364 19,666,914 60,282,712 Total Liabilities and Fund Balances 14,923,374$ 4,229,672$ 3,197,607$ 22,350,653$ 82,455,186$ Concluded Liabilities and Fund Balances - 92 - Capital Projects Assets February 28, 2005 THIS PAGE INTENTIONALLY LEFT BLANK 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 HOME - to account for the activity of the HOME program. Financing is provided by the federal government. Expenditures are made in accordance with the requirements of federal law. Community Development Block Grant - to account for revenues and expenditures of the community block grant program. Financing is provided by the federal government on a reimbursement basis in accordance with federal formula. Expenditures are made in accordance with requirements of federal law. 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. 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. 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. Township Funds Town - to account for general adminstrative services. Debt Service funds are used to account for the servicing of general long-term debt. 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. Washington National Tax Increment District - to account for the design and building of a new Sherman Plaza garage financed primarily by general obligation bond proceeds. 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. Central Business Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Southwest Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Howard Hartrey Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Washington National Tax Increment District - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Special Revenue Funds - Continued 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. CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet Emergency Motor Economic Telephone Fuel Tax Development System Library Cash and equivalents 1,904,230$ 944,335$ 2,380,359$ 58,276$ Investments - - - 2,200,731 Receivables Property taxes (net of allowance) Current year levy - - - - Notes - - - - Allowance - - - - Special assessments - - - - Accrued interest - - - 2,932 Other - 20,925 139,999 - Due from other governments 164,175 - - - Due from other funds 331,372 - - - Total Assets 2,399,777$ 965,260$ 2,520,358$ 2,261,939$ Liabilities Vouchers payable -$ 10,811$ 14,648$ -$ Accrued payroll - 2,110 5,319 - Other - - - - Due to other governments - - - - Due to other funds - 32,606 86 - Unearned revenues - - - - Total Liabilities - 45,527 20,053 - Fund Balances Reserved for notes receivable - - - - Reseved for debt service - - - - Unreserved Capital projects 2,399,777 - - 2,261,939 Undesignated - 919,733 2,500,305 - Total Fund Balances 2,399,777 919,733 2,500,305 2,261,939 Total Liabilities and Fund Balances 2,399,777$ 965,260$ 2,520,358$ 2,261,939$ Liabilities and Fund Balances - 88 - Assets February 28, 2005 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 522,498$ 281,513$ 124,552$ 1,167$ 635,912$ 939$ -$ 6,853,781$ - - - - - - - 2,200,731 - - - - - 247,205 6,589,799 6,837,004 - 1,413,766 2,499,526 12,799 1,469,038 - - 5,395,129 - - - - - - - - - - - - - - - - - - - - - - - 2,932 - - - - - - - 160,924 - - 55,537 316,878 - - - 536,590 - - - 56,641 205,200 - - 593,213 522,498$ 1,695,279$ 2,679,615$ 387,485$ 2,310,150$ 248,144$ 6,589,799$ 22,580,304$ -$ 1,500$ 7,025$ 163,669$ 22,826$ -$ -$ 220,479$ - - - 3,376 - - - 10,805 - - - - (391) - - (391) - - - - - - - - 500,000 - 125,810 207,641 - 31,886 2,292,568 3,190,597 - - - - - 141,157 4,297,231 4,438,388 500,000 1,500 132,835 374,686 22,435 173,043 6,589,799 7,859,878 - 1,413,766 2,499,526 12,799 1,469,038 - - 5,395,129 - - - - - - - - - - - - - - - 4,661,716 22,498 280,013 47,254 - 818,677 75,101 - 4,663,581 22,498 1,693,779 2,546,780 12,799 2,287,715 75,101 - 14,720,426 522,498$ 1,695,279$ 2,679,615$ 387,485$ 2,310,150$ 248,144$ 6,589,799$ 22,580,304$ Continued - 89 - Special Revenue CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Total Town General Township Fund Assistance Funds Total Cash and equivalents 198,838$ 364,253$ 563,091$ 7,416,872$ Investments - - - 2,200,731 Receivables Property taxes (net of allowance) Current year levy 215,030 560,513 775,543 7,612,547 Notes - - - 5,395,129 Allowance - - - - Special assessments - - - - Accrued interest - - - 2,932 Other - 31,736 31,736 192,660 Due from other governments - - - 536,590 Due from other funds 173,962 - 173,962 767,175 Total Assets 587,830$ 956,502$ 1,544,332$ 24,124,636$ Liabilities Vouchers payable 25,276$ 47,538$ 72,814$ 293,293$ Accrued payroll - - - 10,805 Other - - - (391) Due to other governments - 4,525 4,525 4,525 Due to other funds - 173,962 173,962 3,364,559 Unearned revenues 196,436 511,322 707,758 5,146,146 Total Liabilities 221,712 737,347 959,059 8,818,937 Fund Balances Reserved for notes receivable - - - 5,395,129 Reseved for debt service - - - - Unreserved Capital projects - - - 4,661,716 Undesignated 366,118 219,155 585,273 5,248,854 Total Fund Balances 366,118 219,155 585,273 15,305,699 Total Liabilities and Fund Balances 587,830$ 956,502$ 1,544,332$ 24,124,636$ Liabilities and Fund Balances - 90 - Assets February 28, 2005 Special Revenue Central Howard Washington Special Business Southwest Hartrey National General Service Tax Tax Tax Tax Obligation District Increment Increment Increment Increment Debt No.5 District District District District Total 962,089$ 23,156$ 7,604,587$ 590,086$ 1,765,233$ 5,055,513$ 16,000,664$ 3,023,202 - - - - - 3,023,202 7,431,205 427,951 4,998,705 577,515 1,199,891 982,369 15,617,636 - - - - - - - - - - - - - - - - - - - - - 4,583 - - - - - 4,583 - - - - - - - - - - - - - - 1,308,102 25,710 - - - - 1,333,812 12,729,181$ 476,817$ 12,603,292$ 1,167,601$ 2,965,124$ 6,037,882$ 35,979,897$ 2,634$ -$ 5,976$ -$ -$ 8,653$ 17,263$ - - - - - - - - - - - - - - - - - - - - - 1,255,378 - 50,260 - - 58,900 1,364,538 4,792,810 242,155 2,753,141 307,571 691,665 500,655 9,287,997 6,050,822 242,155 2,809,377 307,571 691,665 568,208 10,669,798 - - - - - - - 6,678,359 234,662 9,793,915 860,030 2,273,459 5,469,674 25,310,099 - - - - - - - - - - - - - - 6,678,359 234,662 9,793,915 860,030 2,273,459 5,469,674 25,310,099 12,729,181$ 476,817$ 12,603,292$ 1,167,601$ 2,965,124$ 6,037,882$ 35,979,897$ Continued - 91 - 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 7,653,620$ 3,229,672$ 2,548,364$ 13,431,656$ 36,849,192$ Investments 4,984,764 989,930 - 5,974,694 11,198,627 Receivables Property taxes (net of allowance) Current year levy - - - - 23,230,183 Notes 55,500 96,649 - 152,149 5,547,278 Allowance - (96,649) - (96,649) (96,649) Special assessments - - 649,243 649,243 649,243 Accrued interest 34,199 - - 34,199 41,714 Other 300 - - 300 192,960 Due from other governments - - - - 536,590 Due from other funds 2,194,991 10,070 - 2,205,061 4,306,048 Total Assets 14,923,374$ 4,229,672$ 3,197,607$ 22,350,653$ 82,455,186$ Liabilities Vouchers payable 481,541$ 13,816$ -$ 495,357$ 805,913$ Accrued payroll - - - - 10,805 Other - - - - (391) Due to other governments - - - - 4,525 Due to other funds 38,931 208 1,500,000 1,539,139 6,268,236 Unearned revenues - - 649,243 649,243 15,083,386 Total Liabilities 520,472 14,024 2,149,243 2,683,739 22,172,474 Fund Balances Reserved for notes receivable 55,500 - - 55,500 5,450,629 Reseved for debt service - - - - 25,310,099 Unreserved Capital projects 14,347,402 4,215,648 1,048,364 19,611,414 24,273,130 Undesignated - - - - 5,248,854 Total Fund Balances 14,402,902 4,215,648 1,048,364 19,666,914 60,282,712 Total Liabilities and Fund Balances 14,923,374$ 4,229,672$ 3,197,607$ 22,350,653$ 82,455,186$ Concluded Liabilities and Fund Balances - 92 - Capital Projects Assets February 28, 2005 CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Emergenc Moto Economic Telephon Neighborhoo Fuel Ta Developmen Syste Librar Improvemen Revenues Taxes -$ 1,128,065$ 1,178,702$ -$ 20,000$ Special assessments - - - - - Intergovernmenta 2,128,017 - - - - Investment incom 33,481 46 90 114,288 - Earnfare - - - - - SSI reimbursemen - - - - - Emergency assistance reimbursemen - - - - - Miscellaneous - - - 38,859 20 Total Revenue 2,161,498 1,128,111 1,178,792 153,147 20,020 Expenditures Current General management and suppor - - - - - Public safet - - 976,107 - - Health and human resource developmen - - - - - Recreation and cultural opportunities - - - 104,000 - Housing and economic developmen - 721,172 - - - Debt service Principal - - - - - Interes - - - - - Fiscal agent fee - - - - - Capital outlay 1,609,364 - - - - Total Expenditures 1,609,364 721,172 976,107 104,000 - Excess (Deficiency) of Revenues Over (Under) Expenditures 552,134 406,939 202,685 49,147 20,020 Other Financing Sources (Uses) Proceeds from sale of bond - - - - - Escrow funding - - - - - Transfers in (out) General Fun (750,000) - - - - CD Loan Fun - - - - - Home Fun - - - - - Town Fun - - - - - General Assistance Fun - - - - - General Obligation Debt Service Fun - - - - - Neighborhood Improvemen - - - - - Washington National Tax Increment Distric - - - - - Central Business Tax Increment Distric - - - - - Capital Improvements Fun - - - - (500,000) Special Assesstment Capital Projec - - - - - Sewer Fun - - - - - Water Fun - - - - - Maple Avenue Garage Fun - (650,000) - - - Total Other Financing Sources (Uses (750,000) (650,000) - - (500,000) Net Change in Fund Balances (197,866) (243,061) 202,685 49,147 (479,980) Fund Balances -Beginning of Yea 2,597,643 1,162,794 2,297,620 2,212,792 502,478 Fund Balances - End of Year 2,399,777$ 919,733$ 2,500,305$ 2,261,939$ 22,498$ - 93 - Year ended February 28, 2005 Special Revenue Special Mayor's Community Community Servic Employe Total Special Developmen Development District Pension Cit Housing HOME Block Gran Loa No. 4 Contribution Funds -$ -$ -$ -$ 262,254$ 6,615,613$ 9,204,634$ - - - - - - - - 1,117,494 2,718,716 822,850 - - 6,787,077 5,994 21,457 - 17,531 79 - 192,966 - - - - - - - - - - - - - - - - - - - - - 6,969 1,037 7,143 - - - 54,028 12,963 1,139,988 2,725,859 840,381 262,333 6,615,613 16,238,705 - - - - - - - - - - - - 6,615,613 7,591,720 - - - - - - - - - - - - - 104,000 10,780 56,434 2,725,859 29,701 245,000 - 3,788,946 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,609,364 10,780 56,434 2,725,859 29,701 245,000 6,615,613 13,094,030 2,183 1,083,554 - 810,680 17,333 - 3,144,675 - - - - - - - - - - - - - - (30,900) - - - - - (780,900) - 40,190 - - - - 40,190 - - - (40,190) - - (40,190) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (500,000) - - - - - - - - - - - - - - - - - - - - - - - - - - - (650,000) (30,900) 40,190 - (40,190) - - (1,930,900) (28,717) 1,123,744 - 770,490 17,333 - 1,213,775 1,722,496 1,423,036 12,799 1,517,225 57,768 - 13,506,651 1,693,779$ 2,546,780$ 12,799$ 2,287,715$ 75,101$ -$ 14,720,426$ Continued - 94 - Special Revenue CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Continued Central Special Business Tota Genera Servic Tax Town General Township Obligation District Incremen Fund Assistance Funds Tota Deb No.5 District Revenues Taxes 297,939$ 803,482$ 1,101,421$ 10,306,055$ 7,914,889$ 448,977$ 6,425,495$ Special assessments - - - - - - - Intergovernmenta 38,080 - 38,080 6,825,157 - - - Investment incom 1,475 1,070 2,545 195,511 170,309 260 63,591 Earnfare - 3,385 3,385 3,385 - - - SSI reimbursemen - 25,784 25,784 25,784 - - - Emergency assistance reimbursemen - 74,239 74,239 74,239 - - - Miscellaneous - - - 54,028 - - - Total Revenue 337,494 907,960 1,245,454 17,484,159 8,085,198 449,237 6,489,086 Expenditures Current General management and suppor 192,086 1,037,830 1,229,916 1,229,916 259 42,920 354,646 Public safet - - - 7,591,720 - - - Health and human resource developmen - - - - - - 200,000 Recreation and cultural opportunities - - - 104,000 - - - Housing and economic developmen - - - 3,788,946 - - - Debt service Principal - - - - 6,665,000 240,000 280,000 Interes - - - - 3,414,884 196,153 370,415 Fiscal agent fee - - - - 191,314 - 35,608 Capital outlay - - - 1,609,364 - - - Total Expenditures 192,086 1,037,830 1,229,916 14,323,946 10,271,457 479,073 1,240,669 Excess (Deficiency) of Revenues Over (Under) Expenditures 145,408 (129,870) 15,538 3,160,213 (2,186,259) (29,836) 5,248,417 Other Financing Sources (Uses) Proceeds from sale of bond - - - - 12,067,261 - - Escrow funding - - - - (11,886,028) - - Transfers in (out) General Fun - - - (780,900) 175,000 - (300,000) CD Loan Fun - - - 40,190 - - - Home Fun - - - (40,190) - - - Town Fun - 117,833 117,833 117,833 - - - General Assistance Fun (117,833) - (117,833) (117,833) - - - General Obligation Debt Service Fun - - - - - - - Neighborhood Improvemen - - - - - - - Washington National Tax Increment Distric - - - - - - (845,315) Central Business Tax Increment Distric - - - - - - - Capital Improvements Fun - - - (500,000) 354,791 - - Special Assesstment Capital Projec - - - - 253,055 - - Sewer Fun - - - - - - - Water Fun - - - - 1,308,102 - - Maple Avenue Garage Fun - - - (650,000) - - (4,000,000) Total Other Financing Sources (Uses (117,833) 117,833 - (1,930,900) 2,272,181 - (5,145,315) Net Change in Fund Balances 27,575 (12,037) 15,538 1,229,313 85,922 (29,836) 103,102 Fund Balances -Beginning of Yea 338,543 231,192 569,735 14,076,386 6,592,437 264,498 9,690,813 Fund Balances - End of Year 366,118$ 219,155$ 585,273$ 15,305,699$ 6,678,359$ 234,662$ 9,793,915$ - 95 - Debt ServiceSpecial Revenue Year ended February 28, 2005 Howar Washington Central Southwes Hartre National Business Total Tax Tax Tax Tax Nonmajo Incremen Incremen Incremen Capital Incremen Special Governmenta District District District Tota Improvement District Assessmen Tota Funds 634,240$ 1,123,713$ 1,111,050$ 17,658,364$ -$ -$ -$ -$ 27,964,419$ - - - - - - 365,554 365,554 365,554 - - - - 60,000 - - 60,000 6,885,157 9,953 51,315 18,067 313,495 245,551 7,372 55,467 308,390 817,396 - - - - - - - - 3,385 - - - - - - - - 25,784 - - - - - - - - 74,239 - - - - 224,547 967,300 - 1,191,847 1,245,875 644,193 1,175,028 1,129,117 17,971,859 530,098 974,672 421,021 1,925,791 37,381,809 - - 1,658 399,483 87,664 313,032 2,071 402,767 2,032,166 - - - - - - - - 7,591,720 - 200,000 200,000 600,000 - - - - 600,000 - - - - - - - - 104,000 - - - - - - - - 3,788,946 195,000 375,000 130,000 7,885,000 - - - - 7,885,000 72,150 307,620 666,314 5,027,536 - - - - 5,027,536 - - 132,214 359,136 - - - - 359,136 - - - - 7,277,698 68,486 - 7,346,184 8,955,548 267,150 882,620 1,130,186 14,271,155 7,365,362 381,518 2,071 7,748,951 36,344,052 377,043 292,408 (1,069) 3,700,704 (6,835,264) 593,154 418,950 (5,823,160) 1,037,757 - - - 12,067,261 13,656,474 - - 13,656,474 25,723,735 - - - (11,886,028) - - - - (11,886,028) (20,600) (125,000) (133,900) (404,500) (57,500) - (30,900) (88,400) (1,273,800) - - - - - - - - 40,190 - - - - - - - - (40,190) - - - - - - - - 117,833 - - - - - - - - (117,833) - - - - (354,791) - (253,055) (607,846) (607,846) - - - - 500,000 - - 500,000 500,000 - - - (845,315) - - - - (845,315) - - 845,315 845,315 - - - - 845,315 - - - 354,791 - - - - (145,209) - - - 253,055 - - - - 253,055 - - - - (4,000,000) - - (4,000,000) (4,000,000) - - - 1,308,102 (4,000,000) - - (4,000,000) (2,691,898) - - - (4,000,000) - - - - (4,650,000) (20,600) (125,000) 711,415 (2,307,319) 5,744,183 - (283,955) 5,460,228 1,222,009 356,443 167,408 710,346 1,393,385 (1,091,081) 593,154 134,995 (362,932) 2,259,766 503,587 2,106,051 4,759,328 23,916,714 15,493,983 3,622,494 913,369 20,029,846 58,022,946 860,030$ 2,273,459$ 5,469,674$ 25,310,099$ 14,402,902$ 4,215,648$ 1,048,364$ 19,666,914$ 60,282,712$ Concluded - 96 - Debt Service 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 15,783,600$ 15,783,600$ -$ Prior year levy 25,000 (145,021) (170,021) Total Property Taxes 15,808,600 15,638,579 (170,021) Personal Property Replacement Tax 392,500 634,907 242,407 Other Taxes Auto rental 34,000 32,543 (1,457) Sales - home rule 5,500,000 5,594,134 94,134 Utility 8,200,000 8,397,773 197,773 State use 660,000 759,931 99,931 Athletic contest 500,000 505,983 5,983 Foreign fire insurance 50,000 - (50,000) Cigarette 300,000 228,473 (71,527) Evanston motor fuel 320,000 272,029 (47,971) Real estate transfer 3,500,000 4,245,478 745,478 Poured liquor 1,425,000 1,656,076 231,076 Amusement - 5,260 5,260 Parking 1,500,000 1,597,278 97,278 Total Other Taxes 21,989,000 23,294,958 1,305,958 Total Taxes 38,190,100 39,568,444 1,378,344 Continued Year ended February 28, 2005 - 97 - 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 2,000,000$ 2,219,131$ 219,131$ Business licenses 90,000 82,099 (7,901) Long-term care licenses 112,400 119,100 6,700 Rooming house licenses 170,000 157,956 (12,044) Pet licenses 40,000 41,324 1,324 Bicycle licenses 100 5 (95) Farmers' market licenses 27,700 25,500 (2,200) Contractors' licenses 80,000 75,375 (4,625) Other licenses - 960 960 Building permits 1,900,000 1,908,112 8,112 Plumbing permits 150,000 138,025 (11,975) Electrical permits 160,000 166,985 6,985 Elevator permits 55,000 18,990 (36,010) Signs and awning permits 10,000 12,449 2,449 Combustion equipment permits 150,000 246,072 96,072 Commercial driveway permits 500 120 (380) Other permits 220,000 360,953 140,953 Liquor licenses 275,000 305,332 30,332 Fire alarm permit fees - (1,035) (1,035) Cable franchise fee 525,000 603,122 78,122 Nicor franchise fee 50,000 66,046 16,046 Northwestern/Centel easement 40,000 47,000 7,000 Residents' parking permits 130,000 123,345 (6,655) Visitor's parking permits - 14,107 14,107 Sign license fee 32,000 31,534 (466) Alarm panel franchise fee 20,000 10,800 (9,200) Plat approval and sign appeal fees 1,000 - (1,000) Total Licenses and Permits 6,238,700 6,773,407 534,707 Continued - 98 - Year ended February 28, 2005 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 -$ 319,609$ 319,609$ Preventive health block grant 56,600 69,397 12,797 Fire department training grant 600 2,456 1,856 Illinois state health department basic services grant 71,000 47,229 (23,771) Bio - terrorrism grant 90,000 - (90,000) Family planning grant 54,500 52,626 (1,874) Hearing and vision grant 6,400 100 (6,300) ICJIA grant - community service 15,000 - (15,000) ICJIA grant - victim 60,000 - (60,000) Other federal aid - (42,439) (42,439) Violent crime victim assistance grant 20,000 25,000 5,000 Federal police grant 105,000 90,325 (14,675) Civil defense grants 20,000 19,091 (909) Retailer and service occupation tax 8,200,000 8,389,985 189,985 State income tax 4,300,000 4,899,124 599,124 State highway maintenance 100,000 133,109 33,109 District 65 dental - 1,500 1,500 Commission on Aging grant 19,000 30,775 11,775 Other state / county grants 400,000 261,574 (138,426) Police training grant 8,000 - (8,000) Dental sealants grant - 2,819 2,819 Lead grant 4,000 1,305 (2,695) Federal grant / Aid - 3,965 3,965 Illinois Tobacco Free Community 25,000 12,285 (12,715) Summer food inspections - 400 400 Kid care agreement 10,500 9,550 (950) HUD emergency shelter grant 80,000 95,148 15,148 Leadbase paint control grant 373,000 29,163 (343,837) Genetic education grant 10,200 17,850 7,650 Tanning parlor inspection - 150 150 Prostate cancer awareness - 7,028 7,028 Family case management grant 266,300 211,870 (54,430) Infant immunization grant - 2,500 2,500 Teen parent service program 15,000 34,236 19,236 Vector prevention grant - 5,000 5,000 Access to care - 75 75 Total Intergovernmental - Revenue from Other Agencies 14,310,100 14,732,805 422,705 Continued Year ended February 28, 2005 - 99 - 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 4,103,000$ 3,727,244$ (375,756)$ Recreation - charges - 50 50 Recreation - unreconciled - 3,545 3,545 Total Recreation 4,103,000 3,730,839 (372,161) Library Film rentals 60,000 57,612 (2,388) Books, lost and paid 21,000 22,879 1,879 Reserves 5,000 6,610 1,610 Miscellaneous revenues 3,500 2,517 (983) Rental books 8,600 7,986 (614) Non-resident cards 3,000 4,190 1,190 Copy machine charges 26,000 27,081 1,081 Library meeting room rentals 8,700 7,400 (1,300) Rental income 26,100 26,100 - State library per capita grant 83,500 92,762 9,262 CD-ROM software rentals 2,000 1,954 (46) Total Library 247,400 257,091 9,691 Continued - 100 - Year ended February 28, 2005 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 2,000$ 709 $ (1,291) Dental clinic fees & check up fees 90,000 75,973 (14,027) Venereal disease program - Skokie 2,250 1,500 (750) Birth and death records 145,000 138,104 (6,896) TB nursing services 12,000 12,000 - Flue and pneumonia program - 8,115 8,115 Health clinic fees - immunizations 5,000 3,178 (1,822) Health clinic fees - sexually transmitted disease 1,200 - (1,200) Health clinic fees - TB 3,200 3,203 3 Health clinic fees - lab 16,200 8,182 (8,018) Health clinic fees - food establishment 145,000 155,394 10,394 Health clinic fees - well child 250 - (250) Health clinic fees - school physicals 2,000 1,510 (490) S.T.D.O. & S.T.D.E. - 7,795 7,795 Dental check up - 8,450 8,450 Emergency dental exam - 155 155 X-Ray - 35 35 Amalgam filling - 345 345 Resin filling - 4,210 4,210 Sedative filling - 50 50 Extraction - 255 255 Pulpotomy - 985 985 Sealant office visit - 869 869 Additional sealant - 35 35 Temporary license fee 3,300 3,211 (89) Food delivery vehicle 6,500 4,680 (1,820) Scavenger truck - 2,340 2,340 Beverage snack vending machine 33,000 38,501 5,501 Homeless health clinic - 132 132 Tobacco license 12,000 13,408 1,408 Funeral director license 4,500 6,960 2,460 Temporary funeral direct license - 6,359 6,359 Ambulance services 440,000 520,384 80,384 Towing charges - (9,555) (9,555) Weights and measures examination 1,000 1,080 80 Senior taxi coupon sales 68,000 80,289 12,289 Recycling - material sales - 515 515 Background check daycare providers - (440) (440) Curb / sidewalk replacement fee - 1,656 1,656 Police report fees 19,500 17,816 (1,684) Continued Year ended February 28, 2005 - 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 - Continued Other Service Charges - Continued Fire report fees 100$ 3,111$ 3,011$ Fire cost recovery charges 5,000 1,266 (3,734) Fire building inspection - 300 300 Other service charges 5,000 2,110 (2,890) Condo conversion application 52,000 95,250 43,250 Zoning fees 40,000 56,791 16,791 Alarm panel subscription fees 100,000 33,895 (66,105) Skokie animal boarding fees 1,000 320 (680) Passport execution fees 13,000 5,948 (7,052) Sanitation classes and charges 25,000 77,978 52,978 Wood recycling - 12,995 12,995 Plan review - 3,202 3,202 Recycling service charge and penalty 628,000 653,472 25,472 Total Other Service Charges 1,881,000 2,065,026 184,026 Total Charges for Services 6,231,400 6,052,956 (178,444) Fines Ticket fines 3,500,000 3,146,566 (353,434) Regular fines 175,000 287,212 112,212 Housing code violations 1,000 2,768 1,768 Building code violations 5,000 - (5,000) Permit penalty fees 5,000 23,980 18,980 Animal ordinance penalties 1,500 - (1,500) False alarm panel fines - fire 55,000 58,290 3,290 False alarm panel fines - police 75,000 100,510 25,510 Administrative adjudication 100,000 94,867 (5,133) Library fines 165,000 170,662 5,662 Boot release fees 85,000 114,250 29,250 Total Fines 4,167,500 3,999,105 (168,395) Continued - 102 - Year ended February 28, 2005 CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Investment Income 200,000$ 192,461$ (7,539)$ Miscellaneous Charges to Other Funds Charges to Water for administrative expenses 1,080,600 1,080,600 - Economic Development 365,900 365,900 - Maple Garage 39,500 39,500 - Emergency Telephone System 139,400 140,200 800 Community Development Block Grant 986,400 976,962 (9,438) HOME 38,400 38,400 - Sewer 614,700 614,700 - Motor Vehicle Parking System 960,100 959,900 (200) Fleet Services 123,200 123,200 - Total Charges to Other Funds 4,348,200 4,339,362 (8,838) Miscellaneous Other Revenues Payments in lieu of taxes 27,000 26,553 (447) Sales and rentals of property 46,000 53,605 7,605 Compensation for damage to City property 40,000 45,489 5,489 Parking permits - Ryan Field 12,000 11,560 (440) Miscellaneous 150,000 3,625,698 3,475,698 Total Other Revenues 275,000 3,762,905 3,487,905 Total Miscellaneous 4,623,200 8,102,267 3,479,067 Total Revenues 73,961,000$ 79,421,445$ 5,460,445$ Concluded Year ended February 28, 2005 - 103 - 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 283,000$ 270,213$ 12,787$ City Manager 2,843,300 2,589,243 254,057 City Clerk 205,400 202,872 2,528 Law Department 662,800 579,788 83,012 Human Resources 1,170,900 1,311,345 (140,445) Finance 1,889,000 2,083,773 (194,773) Facilities management 2,202,300 2,371,895 (169,595) Miscellaneous operating requirements 2,371,600 2,933,726 (562,126) Total General Management and Support 11,628,300 12,342,855 (714,555) Public Safety Emergency services and disaster assistance 71,000 45,802 25,198 Police 17,658,300 18,076,386 (418,086) Fire 10,085,500 10,581,956 (496,456) Total Public Safety 27,814,800 28,704,144 (889,344) Public Works Municipal service center 192,500 200,689 (8,189) Public Works Director 268,000 250,568 17,432 City Engineer 1,097,700 1,207,098 (109,398) Traffic Engineer 2,278,200 2,507,862 (229,662) Streets 3,334,500 3,501,528 (167,028) Sanitation 4,154,100 4,242,165 (88,065) Total Public Works 11,325,000 11,909,910 (584,910) Continued Year ended February 28, 2005 - 104 - 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 357,000$ 283,307$ 73,693$ Health Department 2,844,300 2,736,821 107,479 Emergency assistance services 267,600 300,094 (32,494) Mental health and community purchased services 1,024,200 1,045,149 (20,949) Commission on Aging 96,600 113,218 (16,618) Subsidized Taxicab Program 212,400 240,233 (27,833) Human Relations 542,700 477,982 64,718 Total Health and Human Resource Development 5,344,800 5,196,804 147,996 Recreation and Cultural Opportunities Library 4,057,900 4,359,186 (301,286) Recreation 6,556,500 6,647,043 (90,543) Parks and forestry 3,058,300 3,235,385 (177,085) Ecology Center 381,700 400,767 (19,067) Arts Council 888,600 742,295 146,305 Total Recreation and Cultural Opportunities 14,943,000 15,384,676 (441,676) Housing and Economic Development Community Development administration 195,900 237,720 (41,820) Planning and zoning 780,700 803,273 (22,573) Housing rehabilitation and property standards 788,300 772,077 16,223 Building code compliance 1,022,500 1,114,473 (91,973) Total Housing and Economic Development 2,787,400 2,927,543 (140,143) Pensions Illinois Municipal Retirement Pension 4,006,700 1,371,992 2,634,708 Total Expenditures 77,850,000$ 77,837,924$ 12,076$ Concluded Year ended February 28, 2005 - 105 - 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$ 2,128,017$ 128,017$ Interest 55,000 33,481 (21,519) Total Revenues 2,055,000 2,161,498 106,498 Expenditures Public Works 2,100,000 1,609,364 490,636 Excess (Deficiency) of Revenues over (under) Expenditures (45,000) 552,134 597,134 Other Financing (Uses) Operating transfers (out) General Fund (750,000) (750,000) - Deficiency of Revenues under Expenditures and Other Financing Uses (795,000)$ (197,866) (597,134)$ Fund Balances Beginning of year 2,597,643 End of yea 2,399,777$ Year ended February 28, 2005 - 106 - 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 675,000$ 816,600$ 141,600$ Amusement taxes 300,000 311,465 11,465 Interest 2,000 46 (1,954) Total Revenue 977,000 1,128,111 151,111 Expenditures Housing and economic development 749,000 721,172 27,828 Excess of Revenues over Expenditures 228,000 406,939 178,939 Other Financing Sources (Uses) Operating transfers in (out) Maple Avenue Garage Fund (650,000) (650,000) - Deficiency of Revenues under Expenditures and Other Financing Uses (422,000)$ (243,061) (178,939)$ Fund Balances Beginning of year 1,162,794 End of yea 919,733$ Year ended February 28, 2005 - 107 - 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 1,277,200$ 1,178,702$ (98,498)$ Interest 9,000 90 (8,910) Total Revenue 1,286,200 1,178,792 (107,408) Expenditures Public Safety 1,871,300 976,107 895,193 Excess (Deficiency) of Revenues over (under) Expenditures (585,100) 202,685 787,785 Other Financing (Uses) Operating transfers (out) General Obligation Debt Service Fund (212,000) - (212,000) Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses (797,100)$ 202,685 575,785$ Fund Balance Beginning of year 2,297,620 End of yea 2,500,305$ Year ended February 28, 2005 - 108 - 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 -$ 5,994$ 5,994$ Miscellaneous 7,000 6,969 (31) Total Revenue 7,000 12,963 5,963 Expenditures Housing and economic development 239,100 10,780 228,320 Excess (Deficiency) of Revenues over (under) Expenditures (232,100) 2,183 234,283 Other Financing (Uses) Operating transfers (out) General Fund (30,900) (30,900) - Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses (263,000)$ (28,717) 234,283$ Fund Balance Beginning of year 1,722,496 End of yea 1,693,779$ Year ended February 28, 2005 - 109 - 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 2,549,932$ 2,718,716$ 168,784$ Miscellaneous - 7,143 7,143 Total Revenues 2,549,932 2,725,859 175,927 Expenditures Housing and economic development 2,549,932 2,725,859 (175,927) (Deficiency) of Revenues (under) Expenditures -$ - -$ Fund Balance Beginning of year 12,799 End of yea 12,799$ Year ended February 28, 2005 - 110 - 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 341,748$ 340,567$ 1,181$ Fair Housing Assistance 80,984 78,984 2,000 Total Administration/Planning 422,732 419,551 3,181 Economic Development Ben & Jerry's 45,000 30,000 15,000 Neighborhood Façade Program 15,000 45,000 (30,000) MBE/Small Business Assistance 96,268 96,264 4 Total Economic Development 156,268 171,264 (14,996) Housing Housing Rehabilitation Administration 230,000 229,992 8 Adaptive Devices 15,000 7,588 7,412 Community Development Administration 100,000 99,996 4 Minor Repairs/Painting Assistance - E.N.A.W. 160,000 160,000 - Demolition/Vacant Lot Cleanup Program - 5,604 (5,604) Civic Center Boiler 15,000 421 14,579 Housing Code Compliance 240,000 240,000 - Total Housing 760,000 743,601 16,399 Continued Year ended February 28, 2005 - 111 - 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 Target Area Tree 20,000$ 19,805$ 195$ Accessible Curb Ramp Program 80,000 12,708 67,292 Street Light Upgrade - 94,229 (94,229) Curb/Sidewalk Replacement 65,000 80,498 (15,498) Fleetwood Jourdain - 155,987 (155,987) Alley Paving - East Clyde - 85,000 (85,000) South Evanston Neighborhood Security - 3,000 (3,000) Black American Heritage and Tech Center - 17,619 (17,619) Alley Paving Program 110,527 123,945 (13,418) Howard St. Enhancement (Outpost) - 12,796 (12,796) Masin Park 150,000 51,446 98,554 Beck Park Restoration - 26,330 (26,330) Handyman Assistance 15,000 9,822 5,178 Twiggs Park - 12,494 (12,494) School District 65-Oakton Playground 60,000 60,000 - Toddler Town Day Care 10,000 10,000 - Special Assesstments / Aleey Paving - 49,314 (49,314) Reba Park 45,000 44,550 450 Fleetwood Jourdain-Community Center 110,155 - 110,155 Toddler Nursery-Infant Welfare 22,500 22,500 - Video Monitor-Police 21,000 - 21,000 Child Care Center Building 20,000 20,000 - Evanston Day Nursery 30,000 30,000 - Family Focus Center Improvements 47,500 47,500 - Graffiti Removal Program 29,845 29,364 481 Total Neighborhood Revitalization 836,527 1,018,907 (182,380) Continued - 112 - Year ended February 28, 2005 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 4,975$ 4,975$ -$ Senior Crime Prevention 22,882 21,013 1,869 Girls Scouts Soy Latina 4,975 4,975 - Evanston Community Defender 59,043 59,043 - Evanston Legal Services CCLAF 9,947 9,947 - Youth Job Center of Evanston 79,586 79,586 - Summer Youth 59,690 59,690 - EEAC Job Counselor 2,488 2,488 - YWCA Shelter Project 35,813 35,813 - Connections for Homeless -Entry Point 11,939 11,939 - Melas at Home 9,947 9,947 - North Shore Senior Center 24,870 24,870 - First Base Homeless 4,975 4,975 - Interfaith Predatory 4,975 4,975 - Open Studio Art 5,968 5,968 - Second Baptist-Yan 12,435 12,435 - Interfaith Housing Program 14,922 14,922 - Metropolitan Family Service 4,975 4,975 - Total Public Services 374,405 372,536 1,869 Total Expenditures 2,549,932$ 2,725,859$ (175,927)$ Concluded Year ended February 28, 2005 - 113 - 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 - 5,716 5,716 Interest - 79 79 Total Revenues 255,000 260,795 5,795 Expenditures Housing and economic development 245,000 245,000 - Excess of Revenues over Expenditures 10,000$ 15,795 5,795$ Fund Balance Beginning of year 200,463 End of yea 216,258$ Year ended February 28, 2005 - 114 - 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 325,000$ 297,939$ (27,061)$ Interest income 4,200 1,475 (2,725) Replacement tax 25,000 38,080 13,080 Total Revenues 354,200 337,494 (16,706) Expenditures General management and support 210,247 192,086 18,161 Excess of Revenues over Expenditures 143,953 145,408 1,455 Other Financing (Uses) Operating transfers (out) General Assistance Fund (115,000) (117,833) (2,833) Excess of Revenues over Expenditures and Other Financing Uses 28,953$ 27,575 (1,378)$ Fund Balance Beginning of year 338,543 End of yea 366,118$ Year ended February 28, 2005 - 115 - 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 865,000$ 803,482$ (61,518)$ Interest income 4,000 1,070 (2,930) Earnfare 2,500 3,385 885 SSI reimbursement (20,000) 25,784 45,784 Emergency assistance reimbursement 110,000 74,239 (35,761) Total Revenues 961,500 907,960 (53,540) Expenditures General management and support 1,103,599 1,037,830 (65,769) (Deficiency) of Revenues (under) Expenditures (142,099) (129,870) 12,229 Other Financing Sources Transfers in Town Fund 115,000 117,833 2,833 Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures (27,099)$ (12,037) 15,062$ Fund Balance Beginning of year 231,192 End of yea 219,155$ Year ended February 28, 2005 - 116 - 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 8,447,258$ 8,269,116$ 440,854$ 440,854$ 8,307,128$ 5,036,598$ Prior year levy, net - 407,913 - 18,486 - 2,386 Sales tax - - - - 250,000 250,000 Investment income 90,000 170,309 200 261 50,000 63,591 Miscellaneous - - - - - - Total Revenues 8,537,258 8,847,338 441,054 459,601 8,607,128 5,352,575 Expenditures General management and support - 259 - 42,920 - 354,646 Health and human resources development - - - - - 200,000 Debt Service Principal 6,330,000 6,666,485 145,000 255,000 295,000 295,000 Interest 4,040,071 3,483,252 7,686 183,749 394,500 356,415 Fiscal agent fees 125,000 191,314 - - 40,000 35,608 Total Expenditures 10,495,071 10,341,310 152,686 481,669 729,500 1,241,669 Excess (Deficiency) of Revenues over (under) Expenditures (1,957,813) (1,493,972) 288,368 (22,068) 7,877,628 4,110,906 Other Financing Sources (Uses) Operating transfers in (out) Bond Proceeds - 12,067,261 - - - - Escrow Funding - (11,886,028) - - - - General 126,840 175,000 - - (300,000) (300,000) Special Assessment Capital Projects 253,055 253,055 - - - - Water Fund - 1,308,102 - - - - Washington National TIF DS - - - - (845,315) (845,315) Maple Avenue Garage - - - - (4,117,700) (4,000,000) Capital Improvement - 354,791 - - - - Downtown TIF DS - - - - - - 379,895 2,272,181 - - (5,263,015) (5,145,315) Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses (1,577,918)$ 778,209 288,368$ (22,068) 2,614,613$ (1,034,409) Fund Balances Beginning of year 879,709 60,137 7,893,260 End of yea 1,657,918$ 38,069$ 6,858,851$ Increment DistricObligation Debt No. 5 - 117 - Business Tax Year ended February 28, 2005 Special Central General Service District Original Original Original Original and Final and Final and Final and Final Budget Actual Budget Actual Budget Actual Budget Actual 583,995$ 577,515$ 1,168,810$ 1,199,891$ 981,199$ 999,838$ 19,929,244$ 16,523,812$ - 50,377 - - - 14,915 - 494,077 - - - - 75,000 75,000 325,000 325,000 10,000 9,953 50,000 51,315 10,000 18,067 210,200 313,496 - - - - - - - - 593,995 637,845 1,218,810 1,251,206 1,066,199 1,107,820 20,464,444 17,656,385 - - - - 41,916 1,658 41,916 399,483 600,000 - - 200,000 - 200,000 600,000 600,000 225,000 225,000 490,000 395,000 140,000 140,000 7,625,000 7,976,485 58,150 58,500 385,713 288,620 1,280,740 700,739 6,166,860 5,071,275 - - - - 74,725 132,214 239,725 359,136 883,150 283,500 875,713 883,620 1,537,381 1,174,611 14,673,501 14,406,379 (289,155) 354,345 343,097 367,586 (471,182) (66,791) 5,790,943 3,250,006 - - - - - - - 12,067,261 - - - - - - - (11,886,028) (20,600) (20,600) (125,000) (125,000) (133,900) (133,900) (452,660) (404,500) - - - - - - 253,055 253,055 - - - - - - - 1,308,102 - - - - - - (845,315) (845,315) - - - - - - (4,117,700) (4,000,000) - - - - - - - 354,791 - - - - 845,315 845,315 845,315 845,315 (20,600) (20,600) (125,000) (125,000) 711,415 711,415 (4,317,305) (2,307,319) (309,755)$ 333,745 218,097$ 242,586 240,233$ 644,624 1,473,638$ 942,687 (27,159) 839,027 3,217,596 12,862,570 306,586$ 1,081,613$ 3,862,220$ 13,805,257$ Increment Distric Increment DistricIncrement Distric Totals - 118 - Washingto Southwest Ta National TaxHoward Hartrey Ta THIS PAGE INTENTIONALLY LEFT BLANK PROPRIETARY FUND TYPES 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 136,795$ -$ -$ -$ 136,795$ Receivables Accounts - billed 1,068,680 - - - 1,068,680 Accounts - unbilled 919,650 - - - 919,650 Due from other funds 320,607 - - (897) 319,710 Intrafund receivable 639,056 170,066 47 (809,169) - Inventory 479,464 - - - 479,464 Total Current Assets 3,564,252 170,066 47 (810,066) 2,924,299 Noncurrent Assets Restricted cash and equivalents and investments 568,356 1,452,586 2,969,092 5,860,181 10,850,215 Total Restricted Assets 568,356 1,452,586 2,969,092 5,860,181 10,850,215 Capital Assets Land 555,415 - - - 555,415 Construction in progress - - - 1,996,767 1,996,767 Capital assets being depreciated 54,465,590 - - - 54,465,590 Less accumulated depreciation (12,905,428) - - - (12,905,428) Total Capital Assets 42,115,577 - - 1,996,767 44,112,344 Total Assets 46,248,185$ 1,622,652$ 2,969,139$ 7,046,882$ 57,886,858$ February 28, 2005 Restricted Accounts Assets - 119 - Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Liabilities (Payable from Current Assets) Vouchers payable 180,327$ -$ -$ 179,992$ 360,319$ Accrued payroll 48,816 - - - 48,816 Due to other funds 1,308,102 - - - 1,308,102 Compensated absences payable 311,322 - - - 311,322 Total Current Liabilities 1,848,567 - - 179,992 2,028,559 Current Liabilities (Payable from Restricted Assets) Vouchers payable - - - 10,629 10,629 Interest payable - 29,559 - - 29,559 Revenue bonds payable - 144,167 - - 144,167 Total Restricted Liabilities - 173,726 - 10,629 184,355 Long-Term Liabilities Revenue bonds payable 4,430,833 - - - 4,430,833 Unamortized bond discount on bonds payable 16,662 - - - 16,662 Total Long-Term Liabilities 4,447,495 - - - 4,447,495 Total Liabilities 6,296,062 173,726 - 190,621 6,660,409 Net Assets Restricted for debt service - 1,448,926 2,969,139 6,856,261 11,274,326 Unrestricted 39,952,123 - - - 39,952,123 Total Net Assets 39,952,123 1,448,926 2,969,139 6,856,261 51,226,449 Total Liabilities and Net Assets 46,248,185$ 1,622,652$ 2,969,139$ 7,046,882$ 57,886,858$ Restricted Accounts Liabilities and Net Assets - 120 - 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$ 2,993,600$ 4,159,800$ Transfer from Capital Improvement -$ -$ 4,000,000 4,000,000 Investment earnings 15,443 34,406 52,561 102,410 Total Increases 1,035,843 180,206 7,046,161 8,262,210 Decreases Bond principal 815,000 - - 815,000 Bond interest 201,705 - - 201,705 Purchase of capital assets - - 1,669,122 1,669,122 Transfer to Insurance Fund - - 4,000,000 4,000,000 Payment of expense 2,850 - 3,279 6,129 Intrafund transfers to operation and maintenance - 145,800 1,308,102 1,453,902 Total Decreases 1,019,555 145,800 6,980,503 8,145,858 Net Increase 16,288 34,406 65,658 116,352 Net Assets Beginning of year 1,432,638 2,934,733 6,790,603 11,157,974 End of yea 1,448,926$ 2,969,139$ 6,856,261$ 11,274,326$ Year ended February 28, 2005 - 121 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual (With Comparative Totals for the Year Ended February 29, 2004) Prior Year Budget Actual Actual Operating Revenues Charges for services 13,199,800$ 12,739,153$ 12,992,143$ Miscellaneous 214,100 447,692 486,236 Total Operating Revenues 13,413,900 13,186,845 13,478,379 Operating Expenses Excluding Depreciation Administration 636,500 698,958 765,262 Operations Pumping 1,868,800 1,745,290 1,699,664 Filtration 1,954,700 1,665,264 1,763,407 Meter maintenance 287,800 294,986 279,882 Distribution 1,154,100 1,110,097 1,098,151 Other 837,900 874,507 935,192 Total Operating Expenses Excluding Depreciation 6,739,800 6,389,102 6,541,558 Operating Income Before Depreciation 6,674,100 6,797,743 6,936,821 Depreciation - 1,296,208 1,287,466 Operating Income 6,674,100 5,501,535 5,649,355 Nonoperating Revenues (Expenses) Investment income 65,000 49,387 39,005 Interest expense - (201,705) (231,023) Bond expenses and amortization of discount - (3,654) (5,968) Net book value of capital assets disposed - (2,643) (6,205) Total Nonoperating Revenues (Expenses) 65,000 (158,615) (204,191) Income Before Transfers 6,739,100 5,342,920 5,445,164 Transfers In (Out) Transfer In - 1,308,102 618,336 Transfer Out (2,615,200) (3,923,302) (3,265,106) (2,615,200) (2,615,200) (2,646,770) Net Income 4,123,900$ 2,727,720 2,798,394 Other Changes in Unreserved Net Assets lntrafund transfers in (out) - net assets - reserved - restricted accounts (1,328,173) (1,943,047) Increase in Unreserved Net Assets 1,399,547 855,347 Unreserved Net Assets Beginning of yea 38,552,576 37,697,229 End of yea 39,952,123$ 38,552,576$ Year ended February 28, 2005 - 122 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual (With Comparative Totals for the Year Ended February 29, 2004) Prior Year Budget Actual Actual Charges for Services, Net Water Sales Evanston 6,588,000$ 6,559,026$ 6,665,158$ Skokie 3,183,600 2,802,720 2,959,732 Northwest Water Commission 3,428,200 3,377,407 3,367,253 Total Charges for Services 13,199,800 12,739,153 12,992,143 Miscellaneous Fees and outside work 45,000 85,788 73,740 Fees, merchandise and other 169,100 361,904 412,496 Total Miscellaneous 214,100 447,692 486,236 Total Operating Revenues 13,413,900$ 13,186,845$ 13,478,379$ Year ended February 28, 2005 - 123 - 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 deparments. 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 Schedule of Net Assets Fleet Services Insurance Totals Current Assets Cash and equivalents 36,705$ 185,772$ 222,477$ Investment - 7,043,522 7,043,522 Receivables - other 18,386 9,606 27,992 Due from other funds 244 - 244 Inventory 254,434 - 254,434 Total Unrestricted Current Assets 309,769 7,238,900 7,548,669 Capital Assets Cost 18,209,749 - 18,209,749 Accumulated depreciation (12,049,944) - (12,049,944) Total Capital Assets 6,159,805 - 6,159,805 Total Assets 6,469,574 7,238,900 13,708,474 Liabilities and Fund Equity Current Liabilities Vouchers payable 185,237 - 185,237 Accrued payroll 22,085 486 22,571 Interest payable 5,713 - 5,713 Compensated absences payable 100,019 - 100,019 General obligation bonds payable 450,000 - 450,000 Claims payable - 9,731,084 9,731,084 Due to other government - 24,739 24,739 Due to other funds 4,799 2,135 6,934 Total Current Liabilities 767,853 9,758,444 10,526,297 Long-Term Liabilities Claims payable - 2,965,700 2,965,700 Total Liabilities 767,853 12,724,144 13,491,997 Net Assets (Deficit) Invested in capital assets, net of related debt 5,709,805 - 5,709,805 Unrestricted (8,084) (5,485,244) (5,493,328) Total net assets (deficit) 5,701,721$ (5,485,244)$ 216,477$ February 28, 2005 Assets - 124 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Schedule of Revenues, Expenses, and Changes in Net Assets Fleet Services Insurance Totals Operating Revenues Charges for Services General Fund 4,047,100$ 1,900,000$ 5,947,100$ Sewer Fund 235,800 - 235,800 Water Fund 301,900 - 301,900 Motor Vehicle Parking System Fund 99,200 - 99,200 Miscellaneous 93,440 306 93,746 Total Operating Revenues 4,777,440 1,900,306 6,677,746 Operating Expenses General support 456,861 - 456,861 Major maintenance 2,342,266 - 2,342,266 Vehicle body maintenance 294,582 - 294,582 General liability claims - (9,489,979) (9,489,979) Workers compensation claims - 2,030,038 2,030,038 Other 192,602 12,737 205,339 Total Operating Expenses 3,286,311 (7,447,204) (4,160,893) Operating Income (Loss) Before Depreciation 1,491,129 9,347,510 10,838,639 Depreciation 1,455,720 - 1,455,720 Operating Income (Loss) 35,409 9,347,510 9,382,919 Nonoperating Revenues (Expenses) Investment income 38 15,680 15,718 Other nonoperating revenues 5,695 - 5,695 Interest expense (58,876) - (58,876) Amortization of bond discount (1,186) - (1,186) Gain (Loss) on disposition of assets 59,973 - 59,973 Total Nonoperating Revenues (Expenses) 5,644 15,680 21,324 Income (Loss) before Operating Transfers 41,053 9,363,190 9,404,243 Transfers In (Out) Water Fund - 4,000,000 4,000,000 Sewer Fund - 4,000,000 4,000,000 Parking Fund 350,000 - 350,000 Change in Net Assets 391,053 17,363,190 17,754,243 Total Net Assets (Deficit) - Beginning of Year 5,310,668 (22,848,434) (17,537,766) Total Net Assets (Deficit)- End of Year 5,701,721$ (5,485,244)$ 216,477$ Year ended February 28, 2005 - 125 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Schedule of Cash Flows Fleet Services Insurance Totals Cash Flows from Operating Activities Receipts from customers and users 4,777,313$ 1,890,700$ 6,668,013$ Receipts from interfund services provided (244) 2,090,760 2,090,516 Payments to suppliers (2,702,032) (6,123,468) (8,825,500) Payments to employees (453,428) (2,029,552) (2,482,980) Payments for interfund services provided (39,767) 1,064 (38,703) Net Cash Provided By (Used For) Operating Activities 1,581,842 (4,170,496) (2,588,654) Cash Flows from Noncapital Financing Activities Operating transfers Water Fund - 4,000,000 4,000,000 Sewer Fund - 4,000,000 4,000,000 Parking Fund 350,000 - 350,000 Net Cash Provided by Noncapital Financing Activities 350,000 8,000,000 8,350,000 Cash Flows from Capital and Related Financing Activities Sale of capital assets 281,858 - 281,858 Acquisition and construction of capital assets (1,958,941) - (1,958,941) Principal paid on general obligation bonds (915,000) - (915,000) Interest paid on general obligation bonds (70,885) - (70,885) Net Cash (Used for) Capital and Related Financing Activities (2,662,968) - (2,662,968) Cash Flows from Investing Activities Proceeds from sales and maturities of investment 500,000 3,500,000 4,000,000 Purchase of imvestments - (7,515,580) (7,515,580) Interest income 38 15,680 15,718 Net Decrease in Cash and Equivalents (231,088) (170,396) (401,484) Cash and Equivalents Beginning of year 267,793 356,168 623,961 End of yea 36,705$ 185,772$ 222,477$ Continued Year ended February 28, 2005 - 126 - CITY OF EVANSTON, ILLINOIS Combining Schedule 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 35,409$ 9,347,510$ 9,382,919$ Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation 1,455,720 - 1,455,720 Changes in assets and liabilities Other receivables (127) (9,606) (9,733) lnterfund receivable (244) 2,090,760 2,090,516 Inventory 35,746 - 35,746 Compensated absences 487 - 487 Accrued payroll 2,946 486 3,432 lnterfund payable (39,767) 1,064 (38,703) Vouchers payable 91,672 (73,551) 18,121 Claims payable - (15,468,868) (15,468,868) Due to other governments - (58,291) (58,291) et Cash Provided By (Used For) Operating Activities 1,581,842$ (4,170,496)$ (2,588,654)$ Year ended February 28, 2005 - 127 - THIS PAGE INTENTIONALLY LEFT BLANK CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS CITY OF EVANSTON, ILLINOIS 2005 2004 Governmental funds capital assets: Land $ 6,556,620 $ 6,556,620 Right of way 18,606,141 18,606,141 Buildings and improvements 76,877,897 76,477,157 Office equipment and furniture 10,629,496 5,696,745 Machinery and equipment 703,123 699,003 Library collections 9,929,181 9,354,086 Capitalized leases 1,190,567 1,190,567 Infrastructure 78,806,398 73,165,617 Construction in progress 9,284,228 3,563,951 Total governmental funds capital assets $ 212,583,651 $ 195,309,887 Investments in governmental funds capital assets by source: Capital Project Funds $ 182,432,795 $ 165,738,247 General and Special Revenue Funds 29,537,332 28,958,116 Gifts / Donation 613,524 613,524 Total governmental funds capital assets $ 212,583,651 $ 195,309,887 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 $18 209 749 at Februar 28 2005 and $17 390 095 at Februar 29 2004. - 128 - Capital Assets Used in the Operation of Governmental Funds Comparative Schedules by Source Year ended February 28, 2005 CITY OF EVANSTON, ILLINOIS General management and support $ 5,194,320 $ 5,565,293 $ 9,337,545 $ 180,312 Public safety 99,900 13,271,700 1,226,956 260,079 Public works 951,020 20,054,066 - 46,884 Recreation and cultural opportunities 311,380 37,986,838 64,995 215,848 Total capital assets $ 6,556,620 $ 76,877,897 $ 10,629,496 $ 703,123 Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activit Year ended February 28, 2005 Office Buildings and equipment and Machinery and FUNCTION AND ACTIVITY Land improvements furniture equipment - 129 - 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 $18,209,749 at February 28, 2005 and $17,390,095 at February 29, 2004. $ - $ 18,606,141 $ 706,974 $ - $ - $ 39,590,585 - - 70,719 - - 14,929,354 - - - 73,983,125 9,284,228 104,319,323 9,929,181 - 412,874 4,823,273 - 53,744,389 $ 9,929,181 $ 18,606,141 $ 1,190,567 $ 78,806,398 $ 9,284,228 $ 212,583,651 Library Right of Capitalized Construction Collections Way leases - 130 - Infrastructure in progress Total CITY OF EVANSTON, ILLINOIS General management and support $ 38,262,375 $ 4,892,161 $ (3,563,951) $ 39,590,585 Public safety 14,483,904 445,450 - 14,929,354 Public works 90,838,831 13,695,267 (214,775) 104,319,323 Recreation and cultural opportunities 51,724,777 2,101,769 (82,157) 53,744,389 Total capital asset $ 195,309,887 $ 21,134,647 $ (3,860,883) $ 212,583,651 Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity Year ended February 28, 2005 Capital assets 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 $18,209,749 at February 28, 2005 and $17,390,095 at February 29, 2004. - 131 - Capital assets FUNCTION AND ACTIVITY March 1, 2004 Additions Deletions February 28, 2005 STATISTICAL SECTION (UNAUDITED) CITY OF EVANSTON, ILLINOIS Government-wide Expenses by Function Year ended February 28, 2005 2003 2004 2005 Government Activities General management and support 14,273,641$ 15,791,355$ 14,450,761$ Public safety 33,420,019 39,237,180 31,167,640 Public works 13,186,710 13,065,137 14,224,855 Health and human resource development 5,041,428 5,370,262 5,843,522 Recreation and cultural opportunities 16,247,049 17,129,356 18,276,621 Housing and economic development 5,817,651 5,973,494 6,757,476 Interest 4,540,304 4,899,622 5,086,412 Total governmental activities 92,526,802 101,466,406 95,807,287 Business-type Activities Water 11,407,511 8,992,102 8,175,691 Motor vehicle parking system 3,701,739 3,468,096 4,777,494 Sewer 8,543,719 8,964,469 8,781,361 Maple avenue garage fund 2,678,894 3,028,429 3,148,145 Total business-type activities 26,331,863 24,453,096 24,882,691 Total expenses 118,858,665$ 125,919,502$ 120,689,978$ Source: City's Comprehensive Annual Financial Reports. Note: The City implemented GASB-34 for the fiscal year ended February 28, 2003. - 132 - CITY OF EVANSTON, ILLINOIS Government-wide Revenues Year ended February 28, 2005 2003 2004 2005 Program revenues Charges for services 53,636,822$ 56,731,361$ 58,870,294$ Operating grants and contributions 3,006,468 3,479,547 3,713,201 Capital grants and contributions 1,962,713 1,458,824 212,000 General revenues Property and replacement taxes 71,718,463 75,929,482 79,714,394 Sales tax 217,000 345,000 345,000 Motor fuel tax 2,116,330 - - * Special assessments 208,002 - - * Gain on sale of capital assets 174,825 93,223 53,605 Miscellaneous 2,131,077 2,003,696 4,942,465 Investment income 1,698,323 2,054,006 1,928,258 Total revenues 136,870,023$ 142,095,139$ 149,779,217$ * Included in program revenues in 2004 and 2005 Source: City's Comprehensive Annual Financial Reports. Note: The City implemented GASB-34 for the fiscal year ended February 28, 2003. - 133 - THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS General Governmental Revenues - By Source (City Funds) Last Ten Fiscal Years 1996 1997 1998 1999 Taxes 44,435,251$ 47,377,295$ 49,253,561$ 51,219,538$ Licenses and permits 3,318,511 3,935,179 4,394,035 4,186,623 Intergovernmental 4,960,463 4,420,780 5,773,857 5,593,385 Charges for services 4,631,830 4,012,343 4,030,003 4,997,650 Fines and forfeits 1,689,984 1,902,396 2,763,919 2,830,747 Investment income 709,267 803,826 930,876 832,176 Miscellaneous 3,004,735 3,305,452 3,642,998 3,586,765 62,750,041$ 65,757,271$ 70,789,249$ 73,246,884$ Note: Includes General, Special Revenue and Debt Service Funds - 134 - 2000 2001 2002 2003 2004 2005 56,526,013$ 61,553,222$ 62,319,808$ 52,545,639$ 56,923,353$ 59,026,698$ 5,333,590 6,436,357 7,404,986 6,459,186 6,699,058 6,773,407 6,250,303 5,448,577 5,859,079 18,291,511 18,004,581 21,519,882 4,859,680 5,491,544 5,514,980 6,261,930 5,996,802 6,052,956 2,624,768 2,782,303 3,241,930 3,742,055 4,162,610 3,999,105 1,178,473 1,909,097 1,442,953 690,001 953,816 698,922 4,103,998 4,127,182 3,631,267 5,995,219 4,714,224 8,156,295 80,876,825$ 87,748,282$ 89,415,004$ 93,985,541$ 97,454,444$ 106,227,265$ - 135 - CITY OF EVANSTON, ILLINOIS General Governmental Expenditures - By Function/Program (City Funds) Last Ten Fiscal Years 1996 1997 1998 1999 General management and support services 6,221,091$ 6,009,344$ 6,200,320$ 7,212,004$ Public Safety 19,190,402 19,493,788 21,239,535 22,181,724 Public Works 9,196,628 9,771,057 9,615,973 10,434,066 Health and human resource development 3,364,856 3,632,846 3,991,174 4,211,702 Recreation and cultural opportunities 9,176,867 9,624,646 9,939,803 10,590,037 Housing and economic development 4,911,069 4,534,206 6,320,413 5,336,215 Pension / IMRF 3,748,991 3,865,286 3,811,861 3,938,842 Debt service 12,605,427 18,486,089 15,791,760 12,187,953 68,415,331$ 75,417,262$ 76,910,839$ 76,092,543$ Note: Includes General, Special Revenue and Debt Service Funds - 136 - 2000 2001 2002 2003 2004 2005 8,260,083$ 8,909,240$ 11,965,898$ 11,293,648$ 11,815,342$ 13,156,536$ 22,504,948 23,927,733 25,454,153 26,875,820 28,008,431 29,707,010 12,677,399 12,211,887 11,655,007 10,847,474 11,118,899 12,070,461 4,341,946 4,743,728 4,620,954 4,839,565 5,272,090 5,800,662 11,729,639 12,107,322 13,028,036 13,422,959 14,251,886 15,493,468 7,013,119 5,619,661 6,292,771 5,661,898 5,882,117 6,717,231 3,858,622 3,926,955 4,090,630 4,209,396 2,687,984 1,371,992 10,717,903 11,095,141 10,639,365 11,224,087 14,548,084 12,912,536 81,103,659$ 82,541,667$ 87,746,814$ 88,374,847$ 93,584,833$ 97,229,896$ - 137 - CITY OF EVANSTON, ILLINOIS Schedule of Insurance in Force 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 Name of Company FM Global FC359 3/01/05 - 3/01/06 Number Dates Specific excess coverage in excess of $500,000 er occurrence Hartford Insurance Co. 83MSRZ3857 March 1, 2005 Policy Policy Safety National Casualty Corp. SP8724-IL 9/15/04 - 9/15/05 Excess Workers' Com ensation Western World Insurance NPP939174 3/01/05 - 3/01/06 3/01/05 -3/01/06 - 138 - Illinois National Insurance Co. 76081596 3/01/05 - 3/01/06 Lexington Insurance Co. National Union Fire Ins. Co. (AIG) 4906490 3/01/05 - 3/01/06 Crime Policy $10,000,000 coverage in excess of $2,000,000 per occurrence (first $2,000,000 is City's portion) 6500801 3/01/05 - 3/01/06 Excess Liability $5,000,000 coverage in excess of $10,000,000 er occurrence Excess Liability CITY OF EVANSTON, ILLINOIS Property Tax Rates Last Ten Levy Years Tax Levy Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 General Corporate 1.3672 1.1649 1.1161 1.0918 0.9801 1.0231 1.0872 0.8646 0.8554 0.8977 Debt Service 0.5740 0.5308 0.5417 0.5946 0.5443 0.5574 0.5743 0.4467 0.4404 0.4494 1.9412 1.6957 1.6578 1.6864 1.5244 1.5805 1.6615 1.3113 1.2958 1.3471 Police Pension 0.2209 0.2111 0.2154 0.2138 0.2062 0.2021 0.2088 0.1819 0.1812 0.1981 Firefighters' Pension 0.1842 0.1774 0.1855 0.1681 0.1566 0.1505 0.1626 0.1348 0.1321 0.1520 Total All Fund 2.3463 2.0842 2.0587 2.0683 1.8872 1.9331 2.0329 1.6280 1.6091 1.6972 Actual Rate Extende 2.347 2.085 2.059 2.069 1.888 1.934 2.033 1.628 1.610 1.698 *2004 property tax rates were not available at publication of this report. Fund - 139 - CITY OF EVANSTON, ILLINOIS Property Tax Levies and Collections (City) Last Ten Levy Years Total Outstanding Current Delinquent Total Collections and Tax Tax Tax as Percent Delinquent Collections Collections Collections of Levy Taxes 23,627,365$ 24,932$ 23,652,297$ 99.56%104,846$ 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 3,136,363 - 3,136,363 9.77%28,964,294 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. 2003 - 140 - 2000 2001 26,217,646 96.58% 1.82% 96.53% 1.79% 27,957,126 Outstanding (1) Tax (2) and Delinquent Percent of Levy Taxes as Collected Percent of Current Levy Levy 1999 Total Tax LevyYear 25,137,352 23,757,143 1998 1995 0.44% 0.34% 97.76% 0.50% 99.45% 98.46% 97.80% -0.05% 2002 26,305,327 23,757,143$ 23,757,144 23,757,032 1996 1997 0.97%97.34% 29,813,787 95.81% 2.96% 1.49%97.60% 2004 32,100,657 9.77% 90.23% CITY OF EVANSTON, ILLINOIS Analysis of City Government Tax Levies Last Ten Levy Years Tax Levy Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fund General Corporate 13,278,261$ 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$ Debt Service 6,050,947 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 19,329,208 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 Police Pension 2,405,808 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 Firefighters Pension 2,022,127 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 23,757,143$ 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$ 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. - 141 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 City of Evanston 2.347 2.085 2.059 2.069 1.888 1.934 2.033 1.628 1.610 1.698 Consolidated Elections - - - 0.027 - 0.023 - 0.032 - 0.029 Cook County 0.993 1.023 0.989 0.919 0.911 0.854 0.824 0.746 0.690 0.630 Cook County Forest Preserve District 0.073 0.072 0.074 0.074 0.072 0.070 0.069 0.067 0.061 0.059 Suburban T.B. Sanitarium 0.008 0.008 0.008 0.008 0.008 0.008 0.008 0.007 0.006 0.004 Metropolitan Water Reclamation District 0.495 0.495 0.492 0.451 0.444 0.419 0.415 0.401 0.371 0.361 North Shore Mosquito Abatement District 0.011 0.011 0.011 0.011 0.011 0.011 0.011 0.010 0.009 0.009 Evanston Township 0.088 0.077 0.076 0.077 0.072 0.072 0.077 0.064 0.062 0.065 Community College 535 0.255 0.233 0.206 0.216 0.205 0.203 0.213 0.186 0.179 0.186 School District 202 3.202 2.946 2.992 3.107 2.905 2.865 2.977 2.469 2.349 2.444 School District 65 4.678 4.245 4.209 4.356 4.126 4.073 4.232 3.516 3.343 3.475 Total tax rate for property not in park district or special service distric 12.150 11.195 11.116 11.315 10.642 10.532 10.859 9.126 8.680 8.960 Percent of total tax rate levied by City of Evansto 19.3% 18.6% 18.5% 18.3% 17.7% 18.4% 18.7% 17.8% 18.5% 19.0% *2004 property tax rates were not available at publication of this report. Government Unit - 142 - CITY OF EVANSTON, ILLINOIS Equalized Assessed Valuation of Taxable Property Last Ten Levy Years Real Railroad Total Equalization Property Property Assessment Factor 1,012,476,073 111,936 1,012,588,009 2.1135 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 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 2004 were not available at publication of this report. 2000 1999 2001 1998 Tax Levy Year 1997 1994 1995 1996 2002 - 143 - 2003 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 134,181$ 114,550$ 377,696$ 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 Levy 1996 Year 1999 Tax 1998 1997 2001 2000 2005 2002 - 144 - 2003 2004 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 1,139,867,738 4,124,072$ 61,595,000$ 54,683,965$ 4.80% 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 (4)6,942,441 123,720,000 63,424,290 3.71% 1,737,543,904 (4)6,592,437 114,445,000 70,035,897 4.03% 1,727,147,885 (4)6,678,359 106,935,000 73,496,641 4.26% Notes: Equalized assessed values do not include tax increment financing district incremental equalized assessed values. (3)These amount 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 Nat'l 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 is not being abated.. Last Ten Fiscal Years General Fiscal Year Ended 857.33 802.56 123,574,951 746.71 775.61 120,403,037$ (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. Per Capita Gross Population Debt Obligation Net General Obligation Debt (2) Bonded Bonded 1997 73,233 73,233 1996 1998 73,233 2001 128,908,875 130,976,7521999 73,233 827.82 74,239 156,955,729 2002 817.40 74,239 147,832,588 2000 73,233 128,981,760 (4)Equalized assessed values for fiscal year ending 2004 were not available at publication of this report; therefore, fiscal year ending 2003 values are used. - 145 - 2004 74,239 191,073,334 943.38 751.69 2003 74,239 194,086,731 854.33 2005 74,239 187,110,000 990.00 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) 73,496,641$ 100.000% 73,496,641$ Other bonded debt County of Cook 2,583,170,000 (3) 1.653% 42,693,975 Metropolitan Water Reclamation District 1,344,529,104 (4) 1.689% 22,711,786 High School District 202 15,300,978 (4) 89.919% 13,758,425 School District 65 49,425,000 89.919% 44,442,268 Skokie Park District 11,620,000 (5) 0.676% 78,575 Total Overlapping Debt 4,004,045,082 123,685,030 Total Direct and Overlapping Debt 4,077,541,723$ 197,181,671$ Notes: City of Evanston's share based upon 2001 real property valuations. (5) February 28, 2005 - 146 - (1) Excludes $28,884,163 General Obligation bonds issued pursuant to Section 15 of the Local Government Debt Reform Act ("Alternate Bonds"). (3) (4) Includes Cook County Forest Preserve District debt. (2) Excludes General Obligation Notes issued in lieu of tax anticipation warrants and notes issued to provide interim construction financing. Excludes general obligation bonds reported in the enterprise and internal service funds, general obligation notes payable under line of credit with Northwestern University, and Special Service District No. 5 unlimited ad valorem tax bonds. CITY OF EVANSTON, ILLINOIS Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures (City) Last Ten Fiscal Years (3) Ratio of (1) (2) Total Debt Service Interest Total General to General and Paying Debt Governmental Governmental Principal Agent Fees Service Expenditures Expenditures 4,940,639$ (3) 3,963,212$ 8,903,851$ 68,415,331$ 13.01% 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% 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. (2) (1) - 147 - (3) Fiscal Year Ended 2000 2001 1996 1997 1998 1999 2002 2003 2004 2005 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 ninety-five million dollars ($95,000,000). As of February 28, 2005, the amount of direct debt of the City appearing in the direct and overlapping debt statistical table is $73,496,641. This amount includes certain outstanding general obligation debt to be retired in future years with nonproperty tax revenue resources. Taking into account the nonproperty tax revenue, the outstanding debt is within the budget policy guidelines. - 148 - The City is a home rule municipality. Article VII, Section 6(k) of the 1970 Illinois Constitution governs computation of the legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property… (2) If its population is more than 25,000 and less than 500,000, an aggregate of one percent;… Indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum … shall not be included in the foregoing ercenta e amounts.” CITY OF EVANSTON, ILLINOIS Water Fund Schedule of Revenue Bond Coverage Net (1) Revenue Direct Available Gross Operating for Debt (2) Revenue Expenses Service Principal Interest Total Coverage 12,128,099$ 4,984,307$ 7,143,792$ 1,382,500$ 1,170,384$ 2,552,884$ 2.80x 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 Notes: Excludes depreciation and amortization. 2000 Fiscal Year Ended Debt Service Requirements 1996 Last Ten Fiscal Years 1998 1999 2005 (1) 2001 2002 2003 2004 1997 Excludes interest paid by escrow agent.(2) - 149 - CITY OF EVANSTON, ILLINOIS Water Fund Water Revenues by Area Northwest Water Evanston Skokie Commission Total 6,911,950$ 2,907,178$ 3,181,411$ 13,000,539$ 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 2003 2004 2005 1999 2000 2001 2002 Year Ended Last Seven Fiscal Years Fiscal Schedule of Operating Revenues - 150 - CITY OF EVANSTON, ILLINOIS Water Fund Water Pumpage by Area Northwest Water Evanston Skokie Commission Total 3,446.67 3,931.28 9,532.74 16,910.69 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 2001 Pumpage to Distribution System (Millions of Gallons) 2002 2003 - 151 - Last Seven Fiscal Years Fiscal Year Ended 2004 2005 1999 2000 CITY OF EVANSTON, ILLINOIS Water Fund Ten Largest Water Customers Cubic Feet of Rank Name Water Used 1 Northwestern University 42,339,900 2 Evanston Hospital 13,185,200 3 St. Francis Hospital 9,973,000 4 Presbyterian Homes 6,104,100 5 District 202, ETHS 3,494,200 6 North Shore Hotel 2,934,500 7 Albany House 2,658,700 8 District 65 Schools 1,911,800 9 Best Western Hotel 1,701,000 10 Wagner Health Center (Mather Pavillion) 1,460,500 Ten Largest Water Customers (2004) - 152 - CITY OF EVANSTON, ILLINOIS Water Fund Water Allocations and Use 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) - 153 - 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 $ 27,356 31.9 13.6 9,533 3.80% 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% Data Sources Last Ten Fiscal Years 2000 Fiscal Year Ended 1998 U.S. Department of Commerce, Bureau of the Census, 2000 census. U.S. Department of Commerce, Bureau of the Census, 2000 census. Evanston school boards - Districts #65 and #202 combined, based on enrollment figures as of September 30 of the previous year. 2003 2004 (2) 1997 2005 1996 (1) 2001 2002 1999 - 154 - 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) (3) U.S. Department of Commerce, Bureau of the Census, based on adjustments through the Chicago Consumer (5) CITY OF EVANSTON, ILLINOIS Construction Value and Property Value (1) (2) Construction Property Value Value 41,911,303$ 3,419,000,000 106,310,738 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 Data Sources Last Ten Fiscal Years City of Evanston building department 1999 1996 2005 2004 1998 Year Fiscal Ended 1997 - 155 - 2000 (2) 2001 2002 (1) 2003 Estimated actual value. CITY OF EVANSTON, ILLINOIS Principal Taxpayers (1) Percentage Equalized of Total Assessed Assessed Type of Business Valuation Valuation Bank One/Office Building 21,567,189$ 1.26% Office building - 18 story 16,757,724 0.98% REP CBRE Office building - Church & Davis 15,849,992 0.93% Chicago Ave. Condo Building 14,570,008 0.85% Church Street Plaza Shopping Center 12,754,867 0.75% Shopping Center 11,696,568 0.68% Grocery & Drug Stores 11,566,292 0.68% Chicago Avenue Condo Building 11,502,824 0.67% Hotel 10,814,757 0.63% 1800 Sherman/Office Building 10,778,529 0.63% 137,858,750$ 7.93% Note: Evanston NW Healthcare Evanston Plaza Freed Church & Chicago LTD. Partnership Lynn Minnici Ten Largest Taxpayers Taxpayers Rotary International Golub & Company Albertson's (Jewel & Osco) Evanston Hotel Total Ten Largest Taxpayers - 156 - (1)January 1, 2003 - Levy year 2003 for 2004 tax billing purposes. Levy year 2002 equalized assessed valuation, including tax increment financing district incremental values, was $1,837,727,164 CITY OF EVANSTON, ILLINOIS Miscellanous Statistics February 28, 2005 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 $37,384 Annual Gross Retail Sales 2004/05 $871,318,597 Municipal Services and Facilities Number of Full-Time Employees 790 Miles of Streets 137 Miles of Alleys 70 Miles of Sewers 150 Number of Street Lights 5,448 Value of Construction Authorized in 2004/2005 $237,211,198 Continued - 157 - CITY OF EVANSTON, ILLINOIS Miscellanous Statistics - Continued February 28, 2005 Fire Protection Number of Firefighters 110 Number of Other Employees 2 Number of Stations 5 Number of Fire Hydrants 1,200 I.S.O. Rating Class 3 Police Protection Number of Police Officers 158 Number of School Crossing Guards 45 Number of Parking Enforcement Officers 16 Number of Other Employees 49 Library Services Number of Branch Libraries 2 Number of Books and Other Materials 545,670 Number of Registered Borrowers 40,770 Loan of Library Materials - 2004/2005 880,561 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 42,605,000 Maximum Daily Pumpage (gallons) 2004/2005 60,395,000 Miles of Water Mains 159.290 - 158 - TAX INCREMENT FINANCING DISTRICT REQUIREMENTS