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HomeMy WebLinkAbout2003-2004 Annual Comprehensive Financial ReportComprehensive Annual Financial Report For the Fiscal Year Ended February 29, 2004 CITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED FEBRUARY 29, 2004 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 xiii 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 83 Firefighters and Police Pension Funds - Schedules of Employer Contribution 84 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 85 Notes to the Required Supplementary Information Firefighters and Police Pension Funds 86 INTRODUCTORY SECTION FINANCIAL SECTION i CITY OF EVANSTON, ILLINOIS Table of Contents PAGE Notes to the Required Supplementary Information Budgets and Budgetary Accounting 86 Notes to the Required Supplementary Information Excess of Actual Expenditures over Budget in Individual Funds 89 GOVERNMENTAL FUND TYPES Nonmajor Governmental Funds Combining Balance Sheet 90 Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances 95 GENERAL FUND Schedule of Revenues - Budget and Actual (Budgetary Basis) 99 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 106 SPECIAL REVENUE FUNDS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 108 Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 109 Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 110 Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 111 Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 112 Schedule of Expenditures - Budget and Actual (Budgetary Basis) 113 Special Service District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 115 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 116 Township - General Assistance Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 117 DEBT SERVICE FUNDS All Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) 118 PROPRIETARY FUND TYPES WATER FUND Schedule of Net Assets 120 Schedule of Changes in Net Assets - Reserved - Restricted Accounts 122 Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets Budget and Actual 123 Operations and Maintenance Account - Schedule of Operating Revenues Budget and Actual 124 INTERNAL SERVICE FUNDS All Funds Schedule of Net Assets 125 Combining Schedule of Revenues, Expenses, and Changes in Net Assets 126 Combining Schedule of Cash Flows 127 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Comparative Schedules by Source 129 Schedule by Function and Activity 130 Schedule of Changes by Function and Activity 132 iii COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSETS STATEMENTS AND SCHEDULES (Continued) CITY OF EVANSTON, ILLINOIS Table of Contents PAGE 133 134 135 137 Schedule of Insurance in Force 139 Property Tax Rates - Last Ten Levy Years 140 Property Tax Levies and Collections (City) - Last Ten Levy Years 141 Analysis of City Government Tax Levies - Last Ten Levy Years 142 Property Tax Rates per $100 - Direct and Overlapping Governments - Last Ten Levy Years 143 Equalized Assessed Valuation of Taxable Property - Last Ten Levy Years 144 Special Assessment Billings and Collections - Last Ten Levy Years 145 Ratio of Net General Obligation Bonded Debt to Equalized Assessed Valuation and Net General Obligation Debt Per Capita (City) - Last Ten Fiscal Years 146 Schedule of Direct and Overlapping Debt (City) 147 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures (City) - Last Ten Fiscal Years 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 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 Ex enditures - B Function/Pro ram Cit Funds STATISTICAL SECTION (UNAUDITED) Government-wide Ex enses b Function Government-wide Revenues General Governmental Revenues - B Source Cit Funds INTRODUCTORY SECTION CITY OF EVANSTON, ILLINOIS Principal Officials February 29, 2004 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 Bobbie Tolston-Brown, Director of Purchasing and Contracts Mary Rodino Kutz, Accounting Manager Patricia P. Ford, Payroll Manager v Kevin Lookis, Revenue Manager Roger D. Crum, City Manager FINANCE DEPARTMENT William A. Stafford, Finance Director and Comptroller Barbara V. Zdanowicz, Assistant Finance Director LEGISLATIVE CITY COUNCIL Lorraine H. Morton, Mayor EXECUTIVE MAYOR CITY COUNCIL HEALTH AND HUMAN SERVICES LIBRARY HUMAN RELATIONS ADVISORY BOARDS AND COMMISSIONS FIRE POLICE FACILITIES MANAGEMENT RECREATION, PARKS AND FORESTRY CITY MANAGER COMMUNITY DEVELOPMENT FINANCE PUBLIC WORKS LAW HUMAN RESOURCES CITY OF EVANSTON ORGANIZATION CHART RESIDENTS CITY CLERK vi THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK vii July 31, 2004 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 29, 2004 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 as 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. 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 29, 2004, 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 29, 2004, 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. 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 ix 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. 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 2004/05 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 x 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 2004/2005, the City projects 47.4% ($78.2 million) of all City expenditures will occur in the General Fund. Other major funds include the General Obligation Debt Service Fund, Central Business Tax Increment Fund, and all of the Enterprise Funds. The enterprise funds (water and sewer) are operated and budgeted on a full accrual basis. Expenditures are recognized when a commitment is made (through a purchase order), and revenues are recognized when they are obligated to the City (for example, water user fees are recognized as revenue when bills are produced). Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board. The accounts of the City are divided into separate self-balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. The City’s expenditures are monitored on a regular basis by the Finance Department and Budget Department. Disbursements are made only if an expenditure is within the authorized appropriation. For each major expenditure a purchase order is prepared and approved and the related appropriation is encumbered before a check is issued. MAJOR INITIATIVES The City has been involved in a variety of projects throughout the year which reflect the City’s commitment to ensuring that its citizens are able to experience a high quality of life in both work and play. The most significant of these projects are briefly described below: • The City’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 is being completed with the finishing of the 207 unit Optima Views 20 plus story condominium building scheduled for late summer 2004. 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 condominium is scheduled for fall 2004 completion. xi • The Sherman Plaza redevelopment, preparatory work on which began in 2002, is to include a new City-owned 1,600 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. Sherman Plaza is scheduled to break ground in September, 2004. • 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 crimes reported in Evanston has fallen by 53%. This current level continues to reflect the lowest crimes levels in over 30 years. 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 2004 was only down 0.3% which is significantly lower than the decreases being experienced by most 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. 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. 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 $16,175,637 (or 9.1%) for the fiscal year reported (FY 2004). The governmental net assets increased by $2,506,483 (or 4.6% from FY 2003) and the business-type activities net assets increased by $13,669,154 (or 11.0% from FY 2003). • The governmental activities revenue increased by $5,566,236 (or 5.4%). The expenditures increased by $8,939,604 (or 9.7%). • The business-type activities revenue decreased by $341,120 (or 1.0%). The expenditures decreased by $1,878,767 (or 7.1%). • The total cost of all City programs increased by $7,060,837 or 5.9%. • The City of Evanston issued new debt in the amount of $27,375,000 during the current fiscal year. Of this, $11,485,000 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 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 would MANAGEMENT’S DISCUSSION AND ANALYSIS FEBRUARY 29, 2004 4 extend to other nonfinancial 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 nonmajor funds is provided in the form of combining schedules in a later section of this report. The City has three kinds of funds: Governmental funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, the focus is very different with fund statements, providing a distinctive view of the City’s governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near-term. Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of the short-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist in understanding the differences between these two perspectives. 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 14-16 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 include within the governmental activities of the government-wide financial statements. Proprietary fund statements and statements for discretely presented component units (reporting is similar to proprietary funds) provide both long-term and short-term financial information consistent with the focus provided by the government-wide financial statements but with more detail for the Water Fund and the Township. Individual fund information for internal service funds and nonmajor enterprise funds is found in combining schedules in a later section of this report. The basic proprietary fund financial statements are presented on pages 17-21 of this report. Fiduciary 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 83- 89 of this report. Major funds and component units are reported in the basic financial statements as discussed. Combining and individual statements and schedules for nonmajor and internal service funds are presented in a subsequent section of this report beginning on page 90. Additional information on capital assets and long-term debt can be found in notes (to the financial statements) 6 and 10, respectively. Financial Analysis of the City as a Whole The City implemented the new financial reporting model used in this report beginning with the prior fiscal year ended February 28, 2003. Over time, as year-to-year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the City as a whole. The City’s combined net assets increased by $16,175,637 from FY 2003 – an increase from $178,176,575 to $194,352,212. STATEMENT OF NET ASSETS Governmental Activities Business-type Activities Total Primary Government 2004 2003 2004 2003 2004 2003 Current and Other Assets $150,486,948 $142,126,133 $38,579,066 $34,593,259 $189,066,014 $176,719,392 Capital Assets 128,853,599 125,258,336 257,467,197 247,615,594 386,320,796 372,873,930 Total Assets 279,340,547 267,384,469 296,046,263 282,208,853 575,386,810 549,593,322 Long-Term Liabilities 124,593,383 133,146,296 125,402,329 142,886,004 249,995,762 276,032,300 6 Other Liabilities 98,223,403 80,220,985 32,815,433 15,163,552 131,038,836 95,384,447 Total Liabilities 222,816,786 213,367,281 158,217,812 158,049,556 381,034,598 371,416,747 Net Assets: Investment in Capital assets, net of Debt -9,753,068 35,436,669 106,538,749 96,914,810 96,785,681 132,051,479 Restricted 33,415,913 33,825,964 11,157,974 9,491,229 44,573,887 43,317,193 Unrestricted 32,860,916 -15,245,355 20,131,728 18,053,258 52,992,644 2,807,903 Total Net Assets $56,523,761 $54,017,278 $137,828,451 $124,159,297 $194,352,212 $178,176,575 The City’s total revenues increased by $5,225,116 or 3.8%. The City’s cost of all programs was increased by $7,060,837. 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 $2,506,483. This was mainly due to a surplus in the General Fund of revenues over expenditures. 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 $13,669,154. 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 $80 million plus 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 2004, the City closed the Sherman Avenue Parking garage. Demolition was scheduled to begin in August 2004, and plans are underway for a new parking facility to be constructed in the same block. 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 2004 2003 2004 2003 2004 2003 Revenue Program Revenues: Charges for services $23,287,630 $19,941,037 $33,443,731 $33,695,785 $56,731,361 $53,636,822 Operating grants and contributions 3,479,547 3,006,468 3,479,547 3,006,468 Capital grants and contributions 1,458,824 1,962,713 1,458,824 1,962,713 General Revenues: Sales taxes 13,421,664 13,792,854 13,421,664 13,792,854 Property taxes 36,768,899 33,788,876 36,768,899 33,788,876 Utility taxes 7,986,489 6,780,419 7,986,489 6,780,419 Other taxes 20,194,349 22,203,548 20,194,349 22,203,548 Investment income 1,710,681 1,265,932 343,325 432,391 2,054,006 1,698,323 Total Revenues 108,308,083 102,741,847 33,787,056 34,128,176 142,095,139 136,870,023 Expenses General management and support 15,791,355 14,273,641 15,791,355 14,273,641 Public safety 39,237,180 33,420,019 39,237,180 33,420,019 Public works 13,065,137 13,186,710 13,065,137 13,186,710 7 Health and human resource development 5,370,262 5,041,428 5,370,262 5,041,428 Recreation and cultural opportunities 17,129,356 16,247,049 17,129,356 16,247,049 Housing and economic development 5,973,494 5,817,651 5,973,494 5,817,651 Interest 4,899,622 4,540,304 4,899,622 4,540,304 Water 8,992,102 11,407,511 8,992,102 11,407,511 Motor vehicle parking system 3,468,096 3,701,739 3,468,096 3,701,739 Sewer 8,964,469 8,543,719 8,964,469 8,543,719 Maple avenue garage 3,028,429 2,678,894 3,028,429 2,678,894 Total Expense 101,466,406 92,526,802 24,453,096 26,331,863 125,919,502 118,858,665 Increase in net assets before transfer 6,841,677 10,215,045 9,333,960 7,796,313 16,175,637 18,011,358 Transfers -4,335,194 -1,719,446 4,335,194 1,719,446 0 0 Increase in net assets 2,506,483 8,495,599 13,669,154 9,515,759 16,175,637 18,011,358 Net Assets - Beginning 54,017,278 45,521,679 124,159,297 114,643,538 178,176,575 160,165,217 Net Assets - Ending $56,523,761 $54,017,278 $137,828,451 $124,159,297 $194,352,212 $178,176,575 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 $111,223,933 as a year-end total, including $18,733,622 unrestricted, indicating availability for continuing City service requirements. Reserved fund balances include: $698,796 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 an increase of $3,773,135 over the prior year. This increase is primarily the result of the events and programs described within the analysis of the City’s governmental 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 $1,315,853. 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 only small decreases in sales tax. State shared revenues, such as income taxes and use taxes, continued to deteriorate due to the poor economy. 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 8.33%, or one month’s expenditures, 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. The General Obligation Debt Service Fund has a fund balance of $6,592,437. The Debt Service Fund year-end balance is fully reserved for debt service. The net decrease of $350,004 in the Debt Service Fund resulted from planned use of the debt service fund balance to pay for the first debt service requirement of the newly issued bonds. 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. 8 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 $528,289 decrease in net assets this year. This is the second consecutive year the fund has experienced a decrease in net assets. The Parking Committee of the City will address this issue over the next year. Internal Service Funds The City’s combined internal service funds net assets were a deficit of $17,537,766 as of February 29, 2004. Over $11 million of this related to one liability case verdict which is on appeal in the Illinois Appellate Court. This is a financial concern, and to address it, the City has instituted new risk management practices and has developed a funding strategy to address both 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 assets with $20,000 or more in value. The City’s investment in capital assets, net of accumulated depreciation, for governmental and business-type activities as of February 29, 2004, was $386,320,796. The total increase in this net investment was 2.9% for governmental and 4.0% for business-type activities. The overall increase was 3.6% for the City as a whole. Major capital asset events during the current fiscal year included continued construction of the downtown revitalization projects. Long-Term Debt At the end of the fiscal year, the City had total bonded debt outstanding of $191,073,334. Of this amount, $70,035,897 is funded directly from property taxes. The other major component is $114,445,000 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 $11.485 million in fixed rate general obligation bonds for capital improvements and $15.89 million in refunding bonds. As a home rule government under Illinois law, there is no legal debt limit for the City. Bond Ratings The City’s general obligation bonds are rated Aaa and VIMG-1by Moody’s Investor Rating Service. Evanston City Water Fund revenue bonds are rated Aa1 and AA for uninsured issues. The Aaa rating was confirmed twice during the year as there were two major issuances. The first was Series 2003 which was for capital improvements and the second was Series 2003B which was for refunding general obligation bonds. Economic Factors 9 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 2004 revenues were slightly up from FY 2003, according to Illinois State Comptroller Dan Hynes. While the state’s unemployment rate continues to be about 5.9%, Evanston’s is closer to 5.47%. While the state has had a decrease in sales tax for three of the last four years, Evanston’s decreased only 0.3% in FY 2004. The City’s housing market continued to boom with the largest year ever in real estate transfer tax receipts of over $4 million. In spite of reduced state revenues amounting to over $750,000, the City’s revenues exceeded budgeted levels due to the strong housing market and continued level sales tax. For the fourth 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 $5,215,628 in excess funds 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 $ 92,902,856 $ 7,387,043 $ 100,289,899 Investments 11,566,392 408,308 11,974,700 Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 31,495,336 - 31,495,336 Accounts - 4,533,637 4,533,637 Notes 4,833,472 - 4,833,472 Special assessments 1,014,798 - 1,014,798 Accrued interest 7,101 181,201 188,302 Other 2,226,768 3,661 2,230,429 Due from other governments 5,612,475 - 5,612,475 Internal balances 536,749 (536,749) - Inventory 290,181 572,007 862,188 Restricted assets Cash and equivalents - 25,720,958 25,720,958 Capital assets Capital assets not being depreciated 25,162,761 3,297,937 28,460,698 Construction in progress 3,563,951 13,146,339 16,710,290 Capital assets (net of accumulated depreciation) 100,126,887 241,022,921 341,149,808 Other assets 820 309,000 309,820 Total Assets $ 279,340,547 $ 296,046,263 $ 575,386,810 The accompanying notes are an integral part of this statement. February 29, 2004 Primary Government Assets - 10 - Governmental Business-type Activities Activities Total Vouchers payable $ 3,658,765 $ 467,011 $ 4,125,776 Accrued payroll 952,093 97,835 1,049,928 Interest payable 17,721 62,556 80,277 Other payables 184,141 - 184,141 Due to other governments 1,106,764 - 1,106,764 Due to other agency 592 - 592 Due to pension fund 2,732,275 - 2,732,275 Payable from restricted assets Vouchers payable - 1,825,949 1,825,949 Interest payable - 1,173,682 1,173,682 Deferred revenues 22,199,789 - 22,199,789 Noncurrent liabilities Payable from restricted assets - due within one year - 7,298,773 7,298,773 Due within one year 92,674,998 21,889,627 114,564,625 Due in more than one year 99,289,648 125,402,379 224,692,027 Total Liabilities 222,816,786 158,217,812 381,034,598 Investment in capital assets, net of related debt (9,753,068) 103,338,749 93,585,681 Restricted Pensions - IMRF 3,200,000 - 3,200,000 Culture and recreation 599,738 - 599,738 Encumbrances 698,796 - 698,796 Notes receivable 4,833,472 - 4,833,472 Prepaid items 820 - 820 Debt service 23,916,714 11,157,974 35,074,688 Other 166,373 - 166,373 Unrestricted 32,860,916 23,331,728 56,192,644 Total Net Assets $ 56,523,761 $ 137,828,451 $ 194,352,212 - 11 - Liabilities Primary Government Net Assets CITY OF EVANSTON, ILLINOIS Statement of Activities Functions/Programs Governmental activities: General management and support $ 15,791,355 $ 12,749,932 $ 139,525 Public safety 39,237,180 310,749 16,482 Public works 13,065,137 309,966 2,238,506 Health and human resource development 5,370,262 938,406 1,064,404 Recreation and cultural opportunities 17,129,356 3,738,922 20,630 Housing and economic development 5,973,494 5,239,655 - Interest 4,899,622 - - Total governmental activities 101,466,406 23,287,630 3,479,547 Business-type activities: Water 8,992,102 13,478,379 - Motor vehicle parking system 3,468,096 3,265,555 - Sewer 8,964,469 15,436,382 - Maple avenue garage fund 3,028,429 1,263,415 - Total business-type activities 24,453,096 33,443,731 - Total primary government $ 125,919,502 $ 56,731,361 $ 3,479,547 General revenues: Property and replacement taxes Sales tax Gain on sale of property Miscellaneous Investment income Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The accompanying notes are an integral part of this statement. - 12 - Year ended February 29, 2004 Charges for Program Revenues Expenses Operating Contributions Grants and Services $ 765,660 $ (2,136,238) $ - $ (2,136,238) - (38,909,949) - (38,909,949) - (10,516,665) - (10,516,665) 112,063 (3,255,389) - (3,255,389) 581,101 (12,788,703) - (12,788,703) - (733,839) - (733,839) - (4,899,622) - (4,899,622) 1,458,824 (73,240,405) - (73,240,405) - - 4,486,277 4,486,277 - - (202,541) (202,541) - - 6,471,913 6,471,913 - - (1,765,014) (1,765,014) - - 8,990,635 8,990,635 $ 1,458,824 (73,240,405) 8,990,635 (64,249,770) 75,929,482 - 75,929,482 345,000 - 345,000 93,223 - 93,223 2,003,696 - 2,003,696 1,710,681 343,325 2,054,006 (4,335,194) 4,335,194 - 75,746,888 4,678,519 80,425,407 2,506,483 13,669,154 16,175,637 54,017,278 124,159,297 178,176,575 $ 56,523,761 $ 137,828,451 $ 194,352,212 - 13 - Changes in Net Assets Activities Net (Expense) Revenue and Activities Total Governmental Business-type Contributions Capital Grants and CITY OF EVANSTON, ILLINOIS Governmental Funds Balance Sheet Central Washington Business National General Tax Tax Nonmajor Total Obligation Increment Increment Governmental Governmental General Debt District District Funds Funds Cash and equivalents 15,346,720$ 3,138,763$ 3,136,912$ 34,170,195$ 36,486,305$ 92,278,895$ Investments 2,000,000 - - - 6,038,450 8,038,450 Receivables Property taxes (net of allowances) 12,549,783 6,200,010 - - 12,745,543 31,495,336 Notes - - 96,649 - 4,736,823 4,833,472 Special assessments - - - - 1,014,798 1,014,798 Accrued interest 1,750 - - - 5,351 7,101 Other 1,878,921 - - - 329,588 2,208,509 Due from other governments 5,379,388 - - - 233,087 5,612,475 Due from other funds 431,351 1,359,355 390,367 - 180,337 2,361,410 Other - - - - 820 820 Total Assets 37,587,913$ 10,698,128$ 3,623,928$ 34,170,195$ 61,771,102$ 147,851,266$ Liabilities Vouchers payable 1,854,718$ 2,739$ 56$ 9,505$ 1,624,632$ 3,491,650$ Accrued payroll 924,213 - 338 - 8,402 932,953 Compensated absences payable 2,192,417 - - - - 2,192,417 Other 183,552 - - - 589 184,141 Due to other governments 26,018 - - - 997,716 1,023,734 Due to other funds 4,690,221 72,282 1,040 220 1,838,886 6,602,649 Deferred revenues 8,676,257 4,030,670 - - 9,492,862 22,199,789 Total Liabilities 18,547,396 4,105,691 1,434 9,725 13,963,087 36,627,333 Fund Balances Restricted 4,664,907 6,592,437 96,649 - 22,061,920 33,415,913 Unrestricted Designated for Capital Project 258,496 - 3,525,845 34,160,470 21,129,587 59,074,398 Special Revenue Funds - - - - 4,616,508 4,616,508 General Fund 14,117,114 - - - - 14,117,114 Total Fund Balances 19,040,517 6,592,437 3,622,494 34,160,470 47,808,015 111,223,933 Total Liabilities and Fund Balances 37,587,913$ 10,698,128$ 3,623,928$ 34,170,195$ 61,771,102$ 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.122,980,826 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.(160,143,232) The net assets of the internal service fund are included in the governmental activities in the statement of net assets.(17,537,766) Net assets of governmental activities 56,523,761$ The accompanying notes are an integral part of this statement. February 29, 2004 Assets Liabilities and Fund Balances - 14 - CITY OF EVANSTON, ILLINOIS Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances Central Washington Business National General Tax Tax Nonmajor Total Obligation Increment Increment Governmental Governmental General Debt District District Funds Funds Revenues Taxes 37,910,430$ 7,799,232$ -$ -$ 18,123,365$ 63,833,027$ Licenses and permits 6,699,058 - - - - 6,699,058 Special assessments - - - - 216,740 216,740 Intergovernmental 13,748,351 - - - 4,437,331 18,185,682 Charges for services 5,996,802 - - - - 5,996,802 State allotment - - - - 400,000 400,000 Fines and forfeits 4,162,610 - - - - 4,162,610 Investment income 205,456 106,593 14,924 333,581 989,823 1,650,377 Miscellaneous 4,558,698 28,002 1,254,750 - 1,111,381 6,952,831 Total Revenues 73,281,405 7,933,827 1,269,674 333,581 25,278,640 108,097,127 Expenditures Current General management and support 11,392,675 3,103 63,346 152,902 1,752,657 13,364,683 Public safety 27,106,140 - - - 6,789,367 33,895,507 Public works 11,118,899 - - - - 11,118,899 Health and human resource development 4,672,090 - - - 600,000 5,272,090 Recreation and cultural opportunities 14,175,886 - 35,227 - 76,000 14,287,113 Housing and economic development 2,535,878 - - - 3,346,239 5,882,117 Pensions 2,687,984 - - - - 2,687,984 Debt service Principal - 6,700,000 - - 2,685,000 9,385,000 Interest and fiscal agent fees - 3,370,541 - - 1,792,543 5,163,084 Capital outlay - - 180,226 - 9,760,399 9,940,625 Total Expenditures 73,689,552 10,073,644 278,799 152,902 26,802,205 110,997,102 Excess (Deficiency) of Revenues Over (Under) Expenditures (408,147) (2,139,817) 990,875 180,679 (1,523,565) (2,899,975) Other Financing Sources (Uses) Transfers in 4,099,000 1,687,994 - 3,000,000 974,986 9,761,980 Transfers out (2,375,000) - - (169,678) (12,742,196) (15,286,874) Issuance of debt - 11,630,649 - - 13,286,185 24,916,834 Escrow Funding - (11,528,830) - - (1,190,000) (12,718,830) Total Other Financing Sources (Uses)1,724,000 1,789,813 - 2,830,322 328,975 6,673,110 Net Change in Fund Balances 1,315,853 (350,004) 990,875 3,011,001 (1,194,590) 3,773,135 Fund Balances -Beginning of Year 17,724,664 6,942,441 2,631,619 31,149,469 49,002,605 107,450,798 Fund Balances - End of Year 19,040,517$ 6,592,437$ 3,622,494$ 34,160,470$ 47,808,015$ 111,223,933$ The accompanying notes are an integral part of this statement. Year ended February 29, 2004 - 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 $ 3,773,135 4,269,145 21,715,064 (24,916,834) 54,374 Internal service funds are reported separately in the fund financial statements. (2,388,401) Change in net assets of governmental activities $ 2,506,483 The accompanying notes are an integral part of this statement. 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. Issuance of 2003 Bonds provides current financial resources to governmental funds, while the repayment of the principal of long term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Governmental funds also re ort the effect of bonds remiums discounts and similar items when debt is first issued. 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. - 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. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended February 29, 2004 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 21,475$ -$ 4,078,604$ 3,286,964$ 7,387,043$ 623,961$ Investments - - - 408,308 408,308 3,527,942 Receivables - Accounts - billed 923,290 358,847 - - 1,282,137 - Accounts - unbilled 905,904 2,345,596 - - 3,251,500 - Accrued interest - 60,250 - 120,951 181,201 - Other 1,360 - - 2,301 3,661 18,259 Due from other funds - - 184,109 8,409 192,518 2,090,760 Inventor 461,384 110,623 - - 572,007 290,181 Total Current Assets 2,313,413 2,875,316 4,262,713 3,826,933 13,278,375 6,551,103 Noncurrent Assets Restricted cash and equivalents 11,669,195 14,051,763 - - 25,720,958 - Total Restricted Assets 11,669,195 14,051,763 - - 25,720,958 - Capital Assets Land 555,415 - - 2,742,522 3,297,937 - Construction in progress 548,279 12,547,060 51,000 - 13,146,339 - Capital assets being depreciated 52,715,922 185,098,286 27,128,673 12,426,059 277,368,940 17,390,095 Less accumulated depreciation (11,740,417) (17,590,267) (2,177,064) (4,838,271) (36,346,019) (11,517,322) Total Capital Assets 42,079,199 180,055,079 25,002,609 10,330,310 257,467,197 5,872,773 Other Assets Receivables Notes - - - 309,000 309,000 - Total Asset 56,061,807$ 196,982,158$ 29,265,322$ 14,466,243$ 296,775,530$ 12,423,876$ The accompanying notes are an integral part of this statement. February 29, 2004 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 276,536$ 27,806$ 105,022$ 57,647$ 467,011$ 167,115$ Accrued payroll 74,133 11,980 - 11,722 97,835 19,140 Interest payable - - - 62,556 62,556 17,721 Compensated absences payable 318,011 71,768 - 72,552 462,331 99,531 General obligation bonds payable - - 3,200,000 510,000 3,710,000 915,000 Claims payable - - - - - 25,303,735 Due to other government - - - - - 83,030 Due to other funds 133,956 114,753 401,398 79,160 729,267 45,639 Total Payable from Current Assets 802,636 226,307 3,706,420 793,637 5,529,000 26,650,911 Current Liabilities (Payable from Restricted Assets) Vouchers payable 121,183 1,704,766 - - 1,825,949 - Interest payable 34,429 1,139,253 - - 1,173,682 - Notes payable - Sewer IEPA Loans - 5,354,606 - - 5,354,606 - General obligation bonds payable - 1,810,000 - - 1,810,000 - Revenue bonds payable 134,167 - - - 134,167 - Total Payable from Restricted Assets 289,779 10,008,625 - - 10,298,404 - Long-Term Liabilities Notes payable - Sewer IEPA Loans - 94,298,798 - - 94,298,798 - General obligation bonds payable - 22,495,000 16,900,000 4,260,000 43,655,000 450,000 Revenue bonds payable 5,245,833 - - - 5,245,833 - Unamortized bond expenses and discount 13,009 (39,341) (53,624) - (79,956) (1,186) Claims payable - - - - - 2,861,917 Total Long-Term Liabilities 5,258,842 116,754,457 16,846,376 4,260,000 143,119,675 3,310,731 Total Liabilities 6,351,257 126,989,389 20,552,796 5,053,637 158,947,079 29,961,642 Invested in capital assets, net of related debt 36,686,190 56,136,016 4,956,233 5,560,310 103,338,749 4,508,959 Restricted for debt service 11,157,974 - - - 11,157,974 - Unrestricted 1,866,386 13,856,753 3,756,293 3,852,296 23,331,728 (22,046,725) Total net assets (deficit 49,710,550$ 69,992,769$ 8,712,526$ 9,412,606$ 137,828,451$ (17,537,766)$ Business-type Activities- Enterprise Funds - 18 - Liabilities Net Assets (Deficit) 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 12,992,143$ 15,428,157$ 1,250,124$ 3,249,502$ 32,919,926$ 6,583,998$ Miscellaneous 486,236 8,225 13,291 16,053 523,805 1,081,327 Total Operating Revenues 13,478,379 15,436,382 1,263,415 3,265,555 33,443,731 7,665,325 Operating Expenses Excluding Depreciation Administration 765,262 - - 1,299,212 2,064,474 - Operations 6,291,028 1,924,535 1,703,247 1,554,897 11,473,707 10,557,473 Total Operating Expenses Excluding Depreciation 7,056,290 1,924,535 1,703,247 2,854,109 13,538,181 10,557,473 Operating Income (Loss) Before Depreciation 6,422,089 13,511,847 (439,832) 411,446 19,905,550 (2,892,148) Depreciation 1,287,466 2,491,390 685,674 276,493 4,741,023 1,572,777 Operating Income (Loss) 5,134,623 11,020,457 (1,125,506) 134,953 15,164,527 (4,464,925) Nonoperating Revenues (Expenses) Investment income 105,136 150,670 13,267 74,252 343,325 20,447 Other nonoperating revenues - - - - - 45,532 Interest expense (231,023) (4,135,536) (620,068) (337,206) (5,323,833) (114,901) Bond expenses and amortization of discount (5,968) (7,858) (19,440) - (33,266) (2,310) Sales of capital assets - - - - - 136,335 Net book value of equipment disposed (6,205) - - (288) (6,493) (8,579) Total Nonoperating Revenues (Expenses) (138,060) (3,992,724) (626,241) (263,242) (5,020,267) 76,524 Income (Loss) Before Transfers 4,996,563 7,027,733 (1,751,747) (128,289) 10,144,260 (4,388,401) Transfers In (Out) Downtown TIF Debt Service Fund 40,000 - 2,900,000 - 2,940,000 - Water Fund - (118,336) - (400,000) (518,336) - General Obligation Debt Service Fund (726,106) - - - (726,106) - Capital Improvement Fund - 3,000,000 - - 3,000,000 - Washington National Debt Service Fund 40,000 - - - 40,000 - Howard Hartrey Debt Service Fund 10,000 - - - 10,000 - Southwest TIF Debt Service Fund 10,000 - - - 10,000 - Parking Fund 400,000 - - - 400,000 - Sewer Fund 118,336 - - - 118,336 - Economic Development Fund - - 590,000 - 590,000 - General Fund (2,539,000) - 200,000 - (2,339,000) 2,000,000 Change in Net Assets 2,349,793 9,909,397 1,938,253 (528,289) 13,669,154 (2,388,401) Total Net Assets (Deficit) - Beginning of Year 47,360,757 60,083,372 6,774,273 9,940,895 124,159,297 (15,149,365) Total Net Assets (Deficit) - End of Year 49,710,550$ 69,992,769$ 8,712,526$ 9,412,606$ 137,828,451$ (17,537,766)$ The accompanying notes are an integral part of this statement. Year ended February 29, 2004 Business-type Activities- Enterprise Funds - 19 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows Governmental Maple Motor Vehicl Activities- Avenue Parking Internal Garage System Service Water Sewer Fund (non-major) Total Funds Cash Flows from Operating Activities Receipts from customers and users 13,456,083$ 15,409,863$ 1,263,415$ 3,238,741$ 33,368,102 7,665,927$ Receipts from interfund services provided (1,277,393) - (184,108) (8,409) (1,469,910) (2,026,541) Payments to suppliers (6,214,083) (1,473,179) (1,689,296) (1,944,079) (11,320,637) (4,133,076) Payments to employees (747,498) 2,924 - (1,301,268) (2,045,842) (1,601,973) Payments for interfund services provided (1,481) - 377,329 67,511 443,359 45,483 Net Cash Provided by (Used for) Operating Activities 5,215,628 13,939,608 (232,660) 52,496 18,975,072 (50,180) Cash Flows from Noncapital Financing Activities Operating transfers (out) Downtown TIF Debt Serivce Fund 40,000 - 2,900,000 - 2,940,000 - Water Fund - (118,336) - (400,000) (518,336) - General Obligation Debt Service Fund (726,106) - - - (726,106) - Capital Improvement Fund - 3,000,000 - - 3,000,000 - Washington National Debt Service Fund 40,000 - - - 40,000 - Howard Hartrey Debt Service Fund 10,000 - - - 10,000 - Southwest TIF Debt Service Fund 10,000 - - - 10,000 - Parking Fund 400,000 - - - 400,000 - Sewer Fund 118,336 - - - 118,336 - Economic Development Fund - - 590,000 - 590,000 - General Fund (2,539,000) - 200,000 - (2,339,000) 2,000,000 Net Cash Provided by (Used for) Noncapital Financing Activities (2,646,770) 2,881,664 3,690,000 (400,000) 3,524,894 2,000,000 Cash Flows from Capital and Related Financing Activities Sale of capital assets - - - - - 136,335 Acquisition and construction of capital assets (768,416) (13,830,703) - - (14,599,119) (861,943) Principal paid on revenue bonds (805,000) - - - (805,000) - Interest paid on revenue bonds (235,913) - - - (235,913) - Principal paid on general obligation bonds - (1,720,000) (1,600,000) (475,000) (3,795,000) (1,130,000) Interest paid on general obligation bonds - (1,484,408) (620,068) (337,206) (2,441,682) (129,572) Principal paid on IEPA loans - (5,125,307) - - (5,125,307) - Interest paid on IEPA loans - (2,651,128) - - (2,651,128) - Proceeds from IEPA loans - 11,219,701 - - 11,219,701 - Net Cash (Used for) Capital and Related Financing Activities (1,809,329) (13,591,845) (2,220,068) (812,206) (18,433,448) (1,985,180) Cash Flows from Investing Activities Proceeds from sale/maturities of investment securities - - - - - 280,286 Interest income 105,136 150,670 13,267 74,252 343,325 20,447 Net Cash Provided by Investing Activities 105,136 150,670 13,267 74,252 343,325 300,733 Net Increase (Decrease) in Cash and Equivalents 864,665 3,380,097 1,250,539 (1,085,458) 4,409,843 265,373 Cash and Equivalents Beginning of year 10,826,005 10,671,666 2,828,065 4,372,422 28,698,158 358,588 End of yea 11,690,670$ 14,051,763$ 4,078,604$ 3,286,964$ 33,108,001$ 623,961$ Reconciliation Cash and equivalents Unrestricted 21,475$ -$ 4,078,604$ 3,286,964$ 7,387,043$ 623,961$ Restricted 11,669,195 14,051,763 - - 25,720,958 - 11,690,670$ 14,051,763$ 4,078,604$ 3,286,964$ 33,108,001$ 623,961$ The accompanying notes are an integral part of this statement. Continued Year ended February 29, 2004 Business-type Activities- Enterprise Funds - 20 - CITY OF EVANSTON, ILLINOIS Proprietary Funds Statement of Cash Flows - Continued Governmental Maple Motor Vehicl Activities- Avenue Parking Internal Garage System Service Water Sewer Fund (non-major) Total Funds Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities Operating income (loss) 5,134,623$ 11,020,457$ (1,125,506)$ 134,953$ 15,164,527$ (4,464,925)$ Depreciation 1,287,466 2,491,390 685,674 276,493 4,741,023 1,572,777 Changes in assets and liabilities Other receivables (1,360) 33,731 - 2,119 34,490 602 Accounts receivable (20,936) - - - (20,936) - lnterfund receivable (1,277,393) - (184,108) (8,409) (1,469,910) (2,026,541) Inventory 16,385 (54,335) - - (37,950) (20,629) Accrued interest receivable - (60,250) - (28,933) (89,183) - Compensated absences (27,193) (832) - (5,310) (33,335) 26,172 Accrued payroll 44,957 3,756 - 3,254 51,967 8,792 lnterfund payable (1,481) - 377,329 67,511 443,359 45,483 lnterfund payable (restricted) - 112,810 - - 112,810 - Vouchers payable (59,117) 13,997 13,951 (360,188) (391,357) 70,538 Vouchers payable (restricted) 119,677 437,612 - - 557,289 - Interest payable - (58,728) - (28,994) (87,722) - Claims payable - - - - - 5,225,941 Due to other governments - - - - - (488,390) Net Cash Provided by (Used for) Operating Activitie 5,215,628$ 13,939,608$ (232,660)$ 52,496$ 18,975,072$ (50,180)$ The accompanying notes are an integral part of this statement. Business-type Activities- Enterprise Funds - 21 - Year ended February 29, 2004 CITY OF EVANSTON, ILLINOIS Fiduciary Funds Statement of Net Assets Special Assessmen Pension Agency Trust Funds Fund Assets Cash and short-term investments 6,352,215$ 19,815$ Receivables Accrued interest 311,138 - Due from other funds 2,735,269 299 Total Receivables 3,046,407 299 Investments, at fair value U.S. Government obligations 38,175,600 - Common stock 3,874,943 - Mutual funds 38,846,035 - Insurance company contracts - separate accounts 731,832 - Total Investments 81,628,410 - Total Assets 91,027,032 20,114 Liabilities Vouchers payable 32,317 - Due to special assessment bondholders - 20,114 Due to other funds 3,293 - Total Liabilities 35,610 20,114 et assets held in trust 90,991,422$ -$ The accompanying notes are an integral part of this statement. February 29, 2004 - 22 - CITY OF EVANSTON, ILLINOIS Fiduciary Funds - Pension Trust Funds Statement of Changes in Plan Net Assets Pension Trust Funds Additions Contributions Employer 5,887,076$ Plan members 1,674,803 Total contributions 7,561,879 Investment income Net appreciation in fair value of investments 7,774,655 Interest 2,028,072 Total investment income 9,802,727 Less investment expense 235,178 Net investment income 9,567,549 Total additions 17,129,428 Deductions Benefits 7,939,222 Refunds of contributions 93,453 Administrative expense 58,600 Total deductions 8,091,275 Net increase 9,038,153 Net assets held in trust for pension benefits Beginning of year 81,953,269 End of yea 90,991,422$ The accompanying notes are an integral part of this statement. Year ended February 29, 2004 - 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. Deficit Fund Equity 39 Note 4. Deposits with Financial Institutions and Investments A. Types of Accounts and Securities 39 B. Pooling of Cash and Investments 39 C. Deposits 40 D. Investments 42 E. Reconciliation of Unrestricted and Restricted Cash and Investments 44 Note 5. Receivables A. Notes Receivable – Special Revenue Funds 44 B. Summary of Receivables 45 Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government- wide Statement of Activities -24- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements (continued from previous page) Note 6. Capital Assets A. Capital Asset Activity 46 B. Construction Commitments 48 Note 7. Interfunds A. Interfund Accounts 49 B. Interfund Transfers 53 Note 8. Operating Leases 56 Note 9. Capital Leases 56 Note 10. Long-Term Debt A. Changes in Long-Term Debt 57 B. General Obligation Bonds Payable 59 C. Special Service District Bonds Payable 60 D. Revenue Bonds Payable 60 E. Notes Payable – Sewer IEPA Loans 60 F. Prior Years General Obligation Bond Defeasances 61 G. Legal Debt Margin 62 H. Industrial Revenue Bonds 62 Note 11. Fund Equity A. Restrictions of Retained Earnings - Water Fund 62 B. Restrictions of Fund Equity 64 C. Unrestricted Fund Equity - Designated 65 Note 12. Individual Fund Activities A. General Obligation Debt Service Fund 66 B. Water Fund 66 C. Special Service City No. 4 66 Note 13. Risk Management – Claims and Judgments 67 Note 14. Subsequent Events 68 Note 15. Contingencies 68 -25- CITY OF EVANSTON, ILLINOIS Index for Notes to the Financial Statements (continued from previous page) Note 16. Joint Ventures A. Northwestern University 68 B. Solid Waste Agency of Northern Cook County 70 C. Evanston Housing Corporation 72 Note 17. Deferred Compensation Plan 73 Note 18. Defined Benefit Pension Plans Illinois Municipal Retirement Fund A. Plan Description 74 B. Funding Status and Progress 75 C. Annual Pension Cost 75 Police and Firefighters Pension Plans D. Plan Descriptions 77 E. Summary of Significant Accounting Policies - Basis of Accounting 78 - Method Used to Value Investments 78 F. Contributions and Reserves 78 G. Concentration of Investments 79 H. Three-Year Trend Information – Pension Trust Funds 80 I. Pensions - Detailed Statement of Net Assets 81 J. Pensions - Detailed Statement of Changes in Net Assets 82 -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 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 which the City implemented GASB 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 municipality as defined by Illinois state law, and provides the following services as authorized by its charter: general management and support,public safety, public works,health and human resource development, recreational and cultural opportunities, and housing and economic development. As required by GAAP,these financial statements present the City (the primary government) and its component unit, an entity for which the City is considered to be financially accountable.Although the component unit is legally a separate entity, it is governed by the same board;therefore,data from this unit is blended with data of the City. 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. -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 Town of the City of Evanston,Illinois (Township) is a separate legal entity which administers General Assistance, a public welfare program assigned by Illinois law to townships.Eligible clients receive General Assistance for food, shelter, and medical needs.Through the town-fund levy,the Township also supports a number of community action programs,which provide direct services to welfare recipients. The Township is governed by a Township Board of Trustees and provides services within the same geographic boundaries of the City. The Township Board of Trustees are the same individuals as the City Council. The Township board levies taxes and is responsible for adopting the Township budget and approving payment of bills. The Township has two elected officials: the supervisor and the assessor,each elected for four-year terms. The supervisor is responsible for Township funds and for the administration of General Assistance. The assessor does not actually assess property; that function is carried out by the Cook County Assessor. The Township Assessor serves as a taxpayer's advocate, helping citizens with tax-related questions. The City participates in three joint ventures,which are reported as nonequity governmental joint ventures and are described in Footnote 16. 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 included in the Reporting Entity due to its financial accountability because the Township Board of Trustees are the same individuals as the City Council members. The Township has a March 31 fiscal year-end. Amounts included in this report are as of and for the year ended March 31, 2003. 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. -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 statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.Program revenues include 1)charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2)grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds,proprietary funds, and fiduciary funds,even though the latter are excluded from the government-wide financial statements.Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are reported in the supplementary information. Governmental funds are used to account for all or most of the City's general activities,including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the City not accounted for in some other fund. All Township funds are considered special revenue funds within the governmental funds category. The City uses funds to report on its financial position and the results of its operations.A fund is a separate accounting entity with a self-balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Funds are classified into three categories:governmental,proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." The government-wide financial statements (i.e., the statement of net assets and the statement of activities)report information on all of the nonfiduciary activities of the City. 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. -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 Fiduciary funds are used to account for assets held on behalf of outside parties,including other governments, or on behalf of other funds within the City.When these assets are held under the terms of a formal trust agreement, a permanent fund is used.Agency funds generally are used to account for assets that the City holds on behalf of others as their agent. The pension trust fund accounts for the activities of the Police and Firefighters Pension funds, which accumulate resources for pension benefit payments to retired police and fire personnel. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements.Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied.Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.Revenues are recognized as soon as they are both measurable and available.Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers property taxes as available if they are collected within 60 days of the end of the current fiscal period. A one year availability period is used for revenue recognition for all other governmental fund revenues.Expenditures generally are recorded when a liability is incurred,as under accrual accounting.However, debt service expenditures, as well as expenditures related to compensated absences 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. Proprietary funds are used to account for activities similar to those found in the private sector,where the determination of net income is necessary or useful for sound financial administration.Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the City (internal service funds). Internal service funds are included with the governmental funds on the government-wide financial statements. -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 following revenues associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. The General Obligation Debt Fund accounts for the resources accumulated and payments made for principal and interest on bonds, notes and contracts of general obligation to the City. The Central Business Tax Increment District Fund accounts for the purchase of land and other related costs of the research park. Financing is provided from the general obligation bonds and note proceeds. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. 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. -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: 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. 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 improvement services to the residents of the City. All activities necessary to provide such services are accounted for in this fund,including administration, operations, financing, and billing and collection. The Water Fund accounts for the provision of water services to the residents of the City and the sale of water to the Village of Skokie, Illinois and the Northwest Water Commission. All activities necessary to provide such services are accounted for in this fund,including, but not limited to,administration, operation, maintenance, financing and related debt service, and billing and collection. Agency funds account for the cash received from property owners on capital improvement special assessments. Such amounts collected will be forwarded to bondholders. The City is not obligated in any manner for this debt and is only acting as agent for the property owners. The City's enterprise funds apply all applicable GASB pronouncements as well as relevant Financial Accounting Standards Board (FASB)pronouncements issued on or before November 30,1989,unless those pronouncements conflict or contradict GASB pronouncements, in which case, GASB prevails. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. -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 revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and the revenue is recognized. Amounts reported as program revenues include 1)charges to customers for goods, services,or privileges provided, 2) operating grants and contributions, and 3)capital grants and contributions,including assessments. Internally dedicated resources are reported as general revenue rather than as program revenue. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services,administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 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 deferred revenues on its combined balance sheet.Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available"criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both Cash and equivalents represent cash on hand, cash deposited in interest-bearing and noninterest-bearing checking accounts, and investments in 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. Investments consist of certificates of deposit,treasury obligations, and insurance contracts with maturities greater than three months.Investments of the pension trust funds are carried at fair value.Investments with over one year to maturity are reported at fair value. All other investments are stated at cost or for U.S.Government Securities amortized cost.These securities are purchased at a premium or discount which is amortized over the life of the investment. This valuation method approximates fair value. -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 Capitalized leases Life of lease I. 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 governmental or business-type activities columns in the government-wide financial statements.Capital assets are defined by the government as assets with an initial,individual cost of more than $20,000.Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.Donated capital assets are recorded at estimated fair market value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives: It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All pay due in the event of termination is accrued when incurred in the government-wide and proprietary fund financial statements. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.Infrastructure acquired prior to the February 28, 2003 implementation of GASB34 has been reported. -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-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net assets.Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements,governmental fund types recognize bond premiums and discounts, as well as bond issuance costs,during the current period.The face amount of debt issued is reported as other financing sources.Premiums received on debt issuances are reported as other financing sources,while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The City is self-insured to certain limits for general liability claims and for workers'compensation insurance. A liability is recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claims adjustment expenses. General liability and workers' compensation claims are paid out of the Insurance Fund. 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 deferred revenue represents the net portion of the 2002 property tax levy that will not be collected within 60 days of the Township's March 31, 2003 year-end. A 2% allowance for loss is reflected in the Township financial statements. In the fund financial statements,governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.Designations of fund balance represent management plans that are subject to change. In preparing financial statements,management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Property tax revenues are recognized when they become both measurable and available.On this basis, property tax revenue includes all cash distributions of property tax received during the fiscal year between March 1, 2003 and February 29, 2004 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/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as operating transfers. -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 $140,200,000 Special service district bonds payable 280,000 Notes payable 333,334 Bonds premium liability 2,538,052 Compensated absences payable 6,074,750 Pension contributions payable 10,717,096 Net adjustments to reduce fund balance – total governmental funds to arrive at net assets – governmental activities. $160,143,232 B. 1. Capital outlay $ 9,173,578 Depreciation expense (4,904,433) $4,269,145 Continued The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net assets –governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that “long-term liabilities,including bonds payable,compensated absences payable, and pension contribution payable, are not due and payable in the current period and,therefore,are not reported in the funds.” The details of this $160,143,232 difference are as follows: The government fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $4,269,145 difference are as follows: Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes in net assets of governmental activities Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets -37- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. B. 2. Principal repayments: General obligation debt $ 21,570,000 SSD#5 Bond refunded 130,000 Installment contracts and capital leases 15,064 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities $21,715,064 3. Compensated absences $111,268 Notes payable 333,333 Amortization income 235,509 Pension contributions (625,736) $54,374 4. 2003 Bond Series $ 15,890,000 2003 B Bond Series 11,485,000 Less: Parking 2003 Bond Series (enterprise fund)(3,545,000) Bonds premium liability 1,086,834 Continued Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities Explanation of Certain Differences between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities - Continued RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS – Continued Another element of that reconciliation states that "The repayment of the principal of long-term debt consumes the current financial resources of governmental funds. These transactions,however, have no effect on net assets." The details of this $21,715,064 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 $54,374 difference are as follows: Another element of that reconciliation states that "Issuance of 2003 Bonds provides current financial resources to governmental funds,while the repayment of the principal of long term debt consumes the current financial resources of governmental funds." The details of this $24,916,834 difference are as follows: -38- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 2. B. $24,916,834 NOTE 3. DEFICIT FUND EQUITY NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A. Types of Accounts and Securities B. Pooling of Cash and Investments 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 The Insurance Fund had a retained earnings deficit of $22,848,434 as of February 29, 2004. The City plans to use current resources and possible debt proceeds to pay for future liabilities. 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 investment policies 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 United States 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. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS – Continued The Illinois Funds is a state-operated money market fund that is AAA rated by Standard & Poors rating Agency and consists of government securities that are invested for 60 days or less. The fair value of Illinois Funds is the same as the ownership interest in the fund.Illinois Funds is sponsored by the State Treasurer in accordance with state law. Net adjustment to decrease net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities Except for cash and investments in certain restricted and special accounts, the City pools the cash of various funds to maximize interest earnings. Interest income is allocated to the various funds based upon their respective participation. -39- 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 $ 10,024,963 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 - $ 10,024,963 Township $ 115,484 - 36,465 $ 151,949 Continued Deposits consist of deposits in interest-bearing and noninterest-bearing checking accounts and certificates of deposit. At February 29, 2004,the carrying amount of the City's deposits,including cash on hand of $36,521, was $9,700,120. The financial institutions balances totaled $10,024,963 and are categorized by level of risk as follows: Category 1 Total Cit De osits At March 31,2003 the carrying amount of the Township's deposits was $138,979. The financial institutions' balances totaled $151,949 and are categorized by level of risk as follows: institution's trust department or agent in the Township's name Category 2 Category 3 Category 1 Deposits insured or collateralized with securities held by the Township or by its agent in the Township's name Deposits collateralized with securities held by the pledging financial Deposits uncollateralized and uninsured Total Townshi De osits -40- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C. Deposits - Continued Entity Total $ 10,140,447 - 36,465 $ 10,176,912 Deposits insured or collateralized with securities held by the City or by Category 1 Total De osits 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 At February 29,2004 the carrying amount of deposits,including cash on hand of $36,521, was $9,839,099. The financial institutions balances totaled $10,176,912 and are categorized by level of risk as follows: -41- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 4. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued D. Investments Total Carrying/ One Two Three Fair Value $54,676,094 $ - $ - 54,676,094$ 527,393 - - 527,393 4,049,591 - - 4,049,591 Insurance Contracts owned by pension trust funds 731,832 +Illinois Funds 72,974,907 ^ Government Money Market Funds 37,829,305 ^ Government Mutual Funds 44,892,692 $59,253,078 $ - $ - $215,681,814 *$38,175,600 owned by pension trust funds. The City's investments at February 29, 2004 are categorized as follows to give an indication of the level of risk assumed by the City at year-end. ^ These investments are not subject to risk categories. The investment objective is 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. Category Three -Uninsured or unregistered investments for which the securities are held by 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 - Investments that are insured or registered or securities held by the City or its agent in the City's name. Category + The fair value of the position in the external investment pool is the same as the value of the pool shares and these investments are not subject to risk categorization and 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* Not subject to risk categories Corporate Bonds City -42- 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 $ 465,084 Total Carrying/ One Two Three Fair Value U.S. Government Securities 54,676,094$ -$ -$ 54,676,094$ Corporate Bonds 527,393 - - 527,393 Common Stock 4,049,591 - - 4,049,591 Insurance Contracts owned by pension trust funds 731,832 +Illinois Funds 73,439,991 ^Government Money Market Funds 37,829,305 ^Government Mutual Funds 44,892,692 59,253,078$ -$ -$ 216,146,898$ Not subject to risk categories Entity Total ^ These investments are not subject to risk categories. The investment objective is 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 investments are not subject to risk categorization and conform to the Illinois Public Funds Act. The fund is managed by the financial institution in which it is held. Category Illinois Funds–not sub ect to risk -43- 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 $100,289,899 Unrestricted investments 11,974,700 Restricted cash and equivalents 25,720,958 Total Cash and Investments – Primary Government 137,985,557 Fiduciary funds cash and equivalents 6,372,030 Fiduciary funds investments 81,628,410 Total Cash and Investments $225,985,997 Carrying amount of deposits – from Note 4 C $ 9,839,099 Investments – from Note 4 D 216,146,898 Total $ 225,985,997 NOTE 5. RECEIVABLES A. Notes Receivable – Special Revenue Funds Beginning of Loan Interest Rates Year Loans Made Repayments End of Year 0% - 8% $ 4,598,138 $ 1,139,197 $ 1,088,712 $ 4,648,623 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 $90,799 exists in the Special Revenue funds due to doubtful accounts. Loan activity for the current year is summarized as follows: The total of unrestricted cash and investments and restricted cash and investments from the Statement of Net Assets and fiduciary funds is reconciled to the preceding deposit and investment disclosures (Notes 4C and 4D) as follows: -44- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 5. RECEIVABLES - Continued B. Summary of Receivables Motor General Central Vehicle Nonmajor General Obligation Business Parking and Other Fund Debt TIF Water Sewer System Funds Total Receivables: Property taxes $ 12,800,779 $ 6,324,010 $ - $ - $ - $ - $ 13,000,454 $ 32,125,243 Accounts - - - 1,829,194 2,704,443 - - 4,533,637 Notes - - 96,649 - - - 4,736,823 4,833,472 Special assessments - - - - - - 1,014,798 1,014,798 Accrued interest 1,750 - - - 60,250 120,951 316,489 499,440 Other 1,878,921 - - 1,360 - 2,301 347,847 2,230,429 Gross receivables 14,681,450 6,324,010 96,649 1,830,554 2,764,693 123,252 19,416,411 45,237,019 Less: allowance for uncollectibles 250,996 124,000 - - - - 254,911 629,907 Net total receivables $ 14,430,454 $ 6,200,010 $ 96,649 $ 1,830,554 $ 2,764,693 $ 123,252 $ 19,161,500 44,607,112 Less Fiduciary Fund Accrued Interest Included in Nonmajor and Other Funds (311,138) Net total receivables - Statement of Net Assets $ 44,295,974 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: -45- 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 29, 2004 was as follows: Balance March 1, 2003 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 5,450,621 2,060,911 3,947,581 3,563,951 Total capital assets, not e ng eprec ate 30,613,382 2,060,911 3,947,581 28,726,712 Capital assets, being depreciated: Buildings and improvements 69,466,531 7,010,626 - 76,477,157 Office equipment and furniture 5,696,745 - - 5,696,745 Machinery and equipment 17,608,664 934,794 454,360 18,089,098 Infrastructure 69,624,901 3,540,716 - 73,165,617 Library collections 8,918,031 436,055 - 9,354,086 Capitalized leases 1,190,567 - - 1,190,567 Total capital assets being depreciated 172,505,439 11,922,191 454,360 183,973,270 Less accumulated depreciation for: Buildings and improvements 18,609,653 1,649,119 - 20,258,772 Office equipment and furniture 3,504,020 494,501 - 3,998,521 Machinery and equipment 10,788,761 1,640,391 491,312 11,937,840 Infrastructure 39,135,812 1,419,195 - 40,555,007 Library collections 4,631,672 1,274,004 - 5,905,676 Capitalized leases 1,190,567 - - 1,190,567 Total accumulated depreciation 77,860,485 6,477,210 491,312 83,846,383 Total capital net assets being depreciated, net 94,644,954 5,444,981 (36,952) 100,126,887 Governmental activities capital assets, net $ 125,258,336 $ 7,505,892 $ 3,910,629 $ 128,853,599 -46- 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 11,348,023 Total capital assets, not being depreciated 11,348,023 Capital assets, being depreciated: Land improvements 5,769 Buildings and improvements - Leasehold improvements - Plant 22,087 Transmission and distribution system - Sewer system and underground lines - Equipment 18,741 Parking meters - Total capital assets being depreciated 46,597 Less accumulated depreciation for: Land improvements 5,481 Buildings and improvements - Leasehold improvements - Plant 15,882 Transmission and distribution system - Sewer system and underground lines - Equipment 18,741 Parking meters - Total accumulated depreciation 40,104 Total capital net assets being depreciated, net 6,493 Business-type activities capital assets, net $11,354,516$ 241,022,921 257 467 197$ 234,422,414 247 615 594 21 206 119$ 1,283,274 248,880 36,346,020 543,677 5,914,011 237,714 8,089,111 3,127,151 16,902,202 27,374 4,741,023 6,607,000 86,943 825,526 18,443 702,219 548,567 1,139,801 2,369,737 162,214 219,271 7,402,774 2,578,584 14,532,465 22,751,004 29,293,745 183,856,301 2,015,840 35,309,503 302,752 3,390,945 3,297,937$ 16,444,276 13,146,339 3,297,937 13,193,180 9,895,243 173,872,159 3,396,714 35,309,503 29,244,977 21,493,610 - 302,752 - - -$ 14,599,119 14,599,119 1,998,949 448,851 266,067,515 277,368,941 448,851 - 11,348,023 462,215 5,088,485 221,506 31,645,101 70,855 1,257,394 9,984,142 35,632 -47- 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 $ 2,091,024 Public safety 383,952 Public works 1,658,094 Recreation and cultural opportunities 2,344,140 Total depreciation expense – governmental activities 6,477,210 Business – type activities: Water $ 1,287,466 Sewer 2,491,390 Maple Avenue Garage 685,674 Motor Vehicle Parking 276,493 Total depreciation expense – business – type activities 4,741,023 B. Construction Commitments $ 786,766 282,564 11,035,656 $ 12,104,986 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 29, 2004, is as follows: -48- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS A. Interfund Accounts At February 29, 2004 interfund receivables and payables consist of the following: General Fund Emer enc Tele hone S stem $$ Economic Develo ment Ma or’s S ecial Housin Nei hborhood Im rovement Fleet Service Insurance EVNORSKO Communit Develo ment Block Grant CD Loan Washin ton National Debt Service SSD#5 GO Debt Service Washin ton National Ca ital Pro ect Downtown TIF Ca ital Pro ect Ca ital Im rovement S ecial Assessment Ca ital Pro ect Ma le Avenue Gara e Motor Vehicle Parkin S stem Water Sewer Firefi hters Pension Police Pension Total General Fund S ecial Revenue Funds Economic Develo ment EVNORSKO General Total Economic Development Emer enc Tele hone S stem Insurance General Nei hborhood Im rovement General S ecial Service District #4 SSD#4 Ma or’s S ecial Housin Home General Home Ma or's S ecial Housin Continued 21,179 - - 38,116 4,690,221 - 2,745 321 2,424 - - 10,000 - 24,673 133,956 - 1,323,995 - - - - 27,598 - 60,016 Due to Other Funds 2,424 - - 38,116 33,557 220 - 1,040 6,034 155,023 Other FundsFunds - - 100 - - 19,870 17,857 271 20,404 26,216 - - - 1,998,436 - 90,636 Due from 483,226 - - - 431,351 - - 661,398 - 536 - - - 90,636 10,000 20,404 -49- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued A. Interfund Accounts - Continued S ecial Revenue Funds - Continued Evnorsko General $$ Economic Develo ment Total EVNORSKO Communit Develo ment Block Grant CD Loan General Community Development Loan CDBG 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 Service General Maple Avenue Garage Sewer Washington National Debt Service SSD#5 Downtown TIF Debt Service Total General Obligation Debt Service Downtown TIF Debt Service Insurance G.O. Debt Service Washington National Debt Service General G.O. Debt Service Special Service District #5 G.O. Debt Service General SSD#4 Capital Improvement Total Special Service District #5 Total Debt Service Funds Continued 1,250 - 1,771,508 - - 72,282 321 592 29 - 17,857 - - 271 - - 29 17,792 - - 100 - 1,587,352 - - 11,031 31,561 - - 129 72,282 - - 689,267 898,085 33,557 5,287 5,287 536 1,359,355 72,282 - 19,870 - - - 17,792 - 24,673 1,481,125 101,364 1,323,995 - Due from Due to Funds Other Funds Other Funds - 4,409 - 128,918 33,557 -50- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued A. Interfund Accounts - Continued Capital Projects Funds Downtown II Capital Project General $ $ Maple Avenue Garage Washington National Capital Project General Capital Improvement SSD#5 General Total Capital Improvement Special Assessment Capital Project General Special Assessment Agency Total Capital Projects Funds Enterprise Funds Water General Motor Vehicle Parking System General Fleet Maple Avenue Garage Total Motor Vehicle Parking System Sewer General Insurance G.O. Debt Service Total Sewer Maple Avenue Garage General Fleet Parking G.O. Debt Service Fund Central Business Tax Increment Capital Project Total Maple Avenue Garage Total Enterprise Funds Continued 4,409 220 21,179 11,031 1,250 92,324 - 114,753 - - 133,956 - - 390,367 729,267 401,398 - - - 184,109 - 155,023 9,942 19,144 - - 60,016 8,409 19,144 - - 79,160 - 27,598 299 417,965 12,002 6,034 - 10,443 - - 390,367 - 8,409 192,518 - - Funds - 1,040 Due from Due to Other Funds Other Funds -51- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued A. Interfund Accounts - Continued Internal Service Funds Fleet Services General $ $ Maple Avenue Garage Parking Total Fleet Services Insurance General Downtown II Debt Service Emergency Telephone System Sewer Total Insurance Total Internal Service Funds Trust and Agency Funds Firefighters Pension General Police Pension Em lo er Pension Contribution Total Firefi hters Pension Police Pension General Firefighters Pension Employer Pension Contribution Total Police Pension Special Assessment Agency Special Assessment Capital Project Total Trust and Agency Funds Total All Funds Less amounts eliminated during GASB 34 implementation Less total Firefighters and Police Pension Total Primary Government (2,735,568) (2,735,568) 536,749$ 536,749$ (4,108,531) 7,380,848 (4,108,531) 7,380,848 898,085 661,398 3,293 44,567 1,072 - - - - 1,175,786 483,226 689,267 3,293 1,998,436 1,559,483 - - 3,293 - - 536 45,639 - - - 92,324 2,090,760 2,090,760 26,216 9,942 8,409 Other FundsOther FundsFunds Due from Due to - - - - 536 2,735,568 3,293 299 - -52- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued B. Interfund Transfers At February 29, 2004 transfers in / out consist of the following: General Fund Motor Fuel Tax $ $ Mayor’s Special Housing Insurance Washington National TIF Debt Service Howard Hartrey TIF Debt Service Southwest TIF Debt Service G.O. Debt Service Downtown TIF Debt Service Capital Improvement Special Assessment Capital Project Maple Avenue Garage Water Total General Fund Special Revenue Funds Economic Development Washington National Capital Project Maple Avenue Garage Emergency Telephone System G.O. Debt Service Mayor’s Special Housing General CD Loan Home Home CD Loan Motor Fuel Tax General Total Special Revenue Funds Continued Transfers Transfers Funds In Out 750,000 - 30,000 - - 2,000,000 130,000 - 100,000 - 20,000 - - 175,000 250,000 - 250,000 - 30,000 - - 200,000 2,539,000 - 4,099,000 2,375,000 91,781 - - 590,000 - 213,400 - 9,046 - 30,000 - 9,046 - 750,000 100,827 1,592,446 -53- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued B. Interfund Transfers - Continued Debt Service Funds General Obligation Debt Service General $ $ Emergency Telephone System Capital Improvement Special Assessment Capital Project Water Total General Obligation Debt Service Downtown TIF Debt Service General Washington National TIF Debt Service Maple Avenue Garage Water Total Downtown TIF Debt Service Southwest TIF Debt Service General Water Total Southwest TIF Debt Service Howard Hartrey TIF Debt Service General Water Total Howard Hartrey TIF Debt Service Washington National Debt Service General Downtown TIF Debt Service Washington National Capital Project Water Total Washington National Debt Service Special Service District #5 Capital Improvement Total Debt Service Funds Capital Projects Washington National Capital Project Economic Development Capital Improvement Washington National Debt Service Total Washington National Capital Project Continued 3,000,000 169,678 175,000 - 213,400 - - 293,488 - 280,000 - Transfer Transfer 2,900,000 - 40,000 - 800,000 726,106 - 1,687,994 - 3,990,000 - Funds In Out - 250,000 - 20,000 - 10,000 - 30,000 - 100,000 - 10,000 - 110,000 - 130,000 800,000 - 77,897 - - 40,000 877,897 170,000 4,409 - 4,300,000 2,570,300 - 91,781 3,000,000 - - 77,897 -54- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued B. Interfund Transfers - Continued Capital Projects Funds - Continued Capital Improvement Sewer $ G.O. Debt Service Fund Washington National Capital Project SSD#5 General Total Capital Improvement Special Assessment Capital Project General G.O. Debt Service Total Special Assessment Capital Project Total Capital Projects Funds Enterprise Funds Water General Washington National TIF Debt Service Howard Hartrey TIF Debt Service Southwest TIF Debt Service G.O. Debt Service Downtown TIF Debt Service Motor Vehicle Parking System Sewer Total Water Motor Vehicle Parking System Water Sewer Capital Improvement Water Maple Avenue Garage General Economic Development Downtown TIF Debt Service Total Maple Avenue Garage Total Enterprise Funds Continued - 6,547,897 - Funds In 3,000,000 - 293,488 - 3,000,000 - 400,000 - Transfer Transfer 250,000 4,409 - - 30,000 - 280,000 3,000,000 7,027,575 - 310,000 - 40,000 10,000 10,000 Out - 400,000 618,336 3,265,106 - 2,539,000 118,336 3,000,000 - - 118,336 200,000 - 590,000 - 2,900,000 - 3,690,000 - 3,783,442 - - - 7,308,336 - 40,000 - 726,106 -55- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 7.INTERFUNDS - Continued B. Interfund Transfers - Continued Internal Service Funds Insurance General $ $ Total All Funds Less amounts eliminated during GASB 34 implementation Total Primary Government $ $ NOTE 8. OPERATING LEASES Minimum annual lease payments are as follows: Fiscal year ending 2005 $ 107,988 Fiscal year ending 2006 100,898 Fiscal year ending 2007 91,341 Fiscal year ending 2008 75,671 $ 375,898 NOTE 9.CAPITAL LEASES Funds In Out Transfer Transfer The City has various operating leases covering the rental of several digital office copiers from the Toshiba America Information Systems and GE Capital. The copiers are located in the Evanston Civic Center, Library,Recreation facilities, and the Evanston Police Station. The City has various operating leases covering the rental of several digital office copiers. The copiers are located in the Evanston Civic Center, Library, Recreation facilities, and the Evanston Police Station. 2,000,000 - 4,335,194 4,335,194 (14,743,269) (14,743,269) 19,078,463 19,078,463 During the FYE '04, the City did not sign any new lease agreements for copiers. Payments on existing leases include 9 copiers for Civic Center (monthly payment of $776), 5 copiers for Parks and Recreation (monthly payment of $4,070), 2 copiers each for Police and Parks and Recreation (monthly payment of $1,757), and 1 copier each for Fire and Library with monthly payments, of $561 and $410, respectively. The City is also making Payments for two other existing operating leases. One of the two leases includes the rental of 8 copiers for Library.The lease term is for 36 months which began in July 2001. The lease payments are $976 per month.Whereas the other lease covers the rental of 2 copiers. The lease began in December 2001 and the lease term is 48 months. Monthly payment is $1,062. The City has acquired telephone equipment under lease agreements which meet the criteria for capitalization as defined by FASB Statement No. 13, "Accounting for leases." These capitalized lease obligations are payable in fixed monthly installments through 2003 at an interest rate of 6.7%. This obligation was paid in full in March 2003. There were no future minimum lease obligations at February 29, 2004. -56- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. LONG-TERM DEBT A. Changes in Long-Term Deb Retired or Final Balance Issued Transferred Balance Interest Maturity March 1, or to Debt February 29, Due Within Rate Date 2003 Adjusted Service Funds 2004 One Year Governmental activities General obligation bonds/corporate purpose bonds Series 1993 2.70%-5.375% 12/1/2010 15,895,000 - 15,895,000 - - Series 1994 5.50%-5.75% 12/1/2014 1,275,000 - 1,275,000 - - Series 1994 Taxable 6.50%-7.60% 12/1/2014 1,460,000 - 1,460,000 - - Series 1995 5.20%-5.70% 12/1/2015 1,295,000 - 630,000 665,000 665,000 Series 1996 4.20%-5.70% 12/1/2016 3,195,000 - 1,175,000 2,020,000 980,000 Series 1997 5.00%-5.50% 12/1/2017 32,535,000 - 2,440,000 30,095,000 2,350,000 Series 1998 4.80%-4.875% 12/1/2018 9,385,000 - 525,000 8,860,000 560,000 Series 1999 4.25%-5.00% 12/1/2019 36,190,000 - 420,000 35,770,000 1,710,000 Series 2000 Variable Rate 12/1/2021 37,000,000 - 1,800,000 35,200,000 35,200,000 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 20,175,000 - 1,375,000 18,800,000 1,400,000 Series 2003 2.00%-5.00% 1/1/2010 - 15,890,000 3,045,000 12,845,000 2,560,000 Series 2003B 2.00%-5.25% 1/1/2023 - 11,485,000 - 11,485,000 415,000 Total general obligation bonds/corporate purpose bonds 193,405,000 27,375,000 30,040,000 190,740,000 80,840,000 Less: Business-type activity bonds (52,970,000) (3,545,000) (7,340,000) (49,175,000) (22,420,000) Total governmental activity bonds 140,435,000 23,830,000 22,700,000 141,565,000 58,420,000 Unamortized bond expenses and discount (3,496) - (2,310) (1,186) - Capital leases (various) 3.2725-11.53% 3/31/2003 15,064 - 15,064 - - Special Service District #5 Bonds 1995 4.30 - 5.90% 12/1/2015 410,000 - 130,000 280,000 135,000 Developer's agreement notes payable 6.10% 2/23/2005 666,667 - 333,333 333,334 333,334 Bonds premium liability 1,686,727 1,086,834 235,509 2,538,052 - Pension contributions 10,091,360 625,736 - 10,717,096 6,190,980 Compensated absences payable- City 8,497,156 (19,190) 111,268 8,366,698 2,291,949 Claims payable 22,939,711 5,862,287 636,346 28,165,652 25,303,735 Governmental activity Long-term liabilities $184,738,189 $31,385,667 $24,159,210 $191,964,646 $92,674,998 -57- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. LONG-TERM DEBT - Continued A. Changes in Long-Term Debt - Continue Retire or Transferred Final Balance Issued to Debt Balance Interest Maturity March 1, or Service February 29, Due Within Rate Date 2003 Adjusted Funds 2004 One Year Business-type Activities General obligation bonds/corporate purpose bonds Sewer $26,025,000 $- $1,720,000 $24,305,000 $ 1,810,000 Maple Avenue Garage 21,700,000 - 1,600,000 20,100,000 20,100,000 Parking System 5,245,000 3,545,000 4,020,000 4,770,000 510,000 Total general obligation bonds/corporate purpose bonds 52,970,000 3,545,000 7,340,000 49,175,000 22,420,000 Unamortized bond expenses and discount (113,227) - (33,271) (79,956) - Water Fund revenue bonds Series 1997 4.00-4.30%1/1/2006 1,150,000 - 375,000 775,000 365,000 Series 1999 4.125-4.375%1/1/2014 2,740,000 - 205,000 2,535,000 210,000 Series 2002 2.00-3.75%1/1/2012 2,295,000 - 225,000 2,070,000 230,000 Total Water Fund revenue bonds 6,185,000 - 805,000 5,380,000 805,000 Sewer Fund – Illinois Various Environmental Protection Through Agency loans 2.535-3.59%11/26/2021 93,559,010 11,219,701 5,125,307 99,653,404 5,501,069 Compensated absences payable- City 495,666 - 33,335 462,331 462,331 Business-type activity long-term liabilities $ 153,096,449 $ 14,764,701 $ 13,270,371 $ 154,590,779 $ 29,188,400 -58- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. LONG-TERM DEBT - Continued B. General Obligation Bonds Payable Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ending February 29 Principal Interest Principal Interest 2005 $ 58,420,000 $ 5,734,820 22,420,000 $ 2,623,473 2006 7,615,000 3,704,591 2,470,000 1,597,875 2007 6,885,000 3,425,274 2,635,000 1,445,218 2008 6,675,000 3,181,256 2,785,000 1,282,325 2009 5,445,000 2,890,896 2,980,000 1,109,885 2010-2014 28,430,000 11,035,865 13,145,000 2,839,943 2015-2019 21,085,000 4,625,919 2,740,000 315,389 2020-2023 7,010,000 853,800 - - Total $ 141,565,000 $ 35,452,421 $ 49,175,000 $ 11,214,108 The City issued general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. In May, 2003, the City issued Series 2003B $11,485,000 in General Obligation bonds at a net interest cost of 4.4900825%. The proceeds are being used to partially finance the City's Long Range Capital Improvement Program. In November2001, the City entered into an interest rate swap agreement with Bank of America relating to the City's $19,000,000 General Obligation (G.O.) Variable Rate Demand Bonds, Series 2000A and the $10,400,000 Variable Rate Demand Bonds, Series 2000C with a fixed rate of 3.125% effective 12/1/01 through 11/30/05. During the current fiscal year, the City paid an additional $307,778 due to the swap agreement. In November 2002, the City entered into a rate cap agreement with JP Morgan Chase Bank relating to the City's $35,000,000 G.O. Variable Rate Demand Bonds, Series 2002 A and B, with a cap rate of 4.75% effective 12/1/02 through 11/30/2005. Governmental Activities In March, 2003, the City issued $15,890,000 in General Obligation bonds with an average interest rate of 3.27% to advance refund $15,895,000 of outstanding 1993 Series bonds with an average interest rate of 4.04%. The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $538,201. This difference, reported in the accompanyingfinancial statements as a bond premium liability, is being charged to operations through the year 2011 using the straight-line method. The proceeds from the new bond issue were used to establish an escrow account and the those monies were used to fully payoff the 1993 bonds on June 1, 2003. The City completed the advance refunding to reduce its total debt service payments over the next seven years by $1,149,266 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1,065,550. Business-type Activities -59- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. LONG-TERM DEBT - Continued C. Special Service District Bonds Payable Annual debt service requirements to maturity for special assessment bonds are as follows: Year Ending February 28 Principal Interest 2005 $ 135,000 $ 14,840 2006 145,000 7,686 Total $ 280,000 $ 22,526 D. Revenue Bonds Payable Revenue bond debt service requirements to maturity are as follows: Year Ending February 28/29 Principal Interest 2005 $ 805,000 $ 206,575 2006 865,000 177,355 2007 470,000 145,088 2008 485,000 128,713 2009 510,000 110,913 2010-2014 2,245,000 251,544 Total $ 5,380,000 $ 1,020,188 E. Notes Payable - Sewer IEPA Loans During the fiscal year ended February 29, 2004, the Illinois Environmental Protection Agency (IEPA) awarded the City three new loans from the Water Pollution Control Revolving Loan Fund. The City currently has 23 outstanding loans from the IEPA. The City will repay the loans solely from revenues derived from the sewer system; the loans do not constitute a full faith and credit obligation of the City. They will be repaid with equal installments consisting of principal plus simple interest, on unpaid principal balances, over a period of 20 years. Initial principal balances will consist of disbursements and interest accrued during construction. Repayments begin not later than six months after completion of construction. 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 Governmental Activities The City also issued debt in the Special Service District No. 5 fund to provide funds for the principal and interest payments on unlimited ad valorem tax bonds issued for this special taxing district. -60- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. LONG-TERM DEBT - Continued E. Notes Payable - Sewer IEPA Loans - Continued Notes payable – Sewer IEPA debt service requirements to maturity are as follows: Year Ending February 29 Principal Interest 2005 $ 5,501,069 $ 2,671,003 2006 5,895,211 2,650,991 2007 6,070,682 2,475,438 2008 6,251,455 2,294,581 2009 6,437,692 2,108,258 2010-2014 34,244,083 7,549,699 2015-2019 25,858,856 3,005,501 2020-2024 9,299,238 495,028 2025 95,118 1,221 Total $ 99,653,404 $ 23,251,720 F. Prior Years' General Obligation Bond Defeasances Original Outstanding GO Series Amount Defeased Defeased Amounts 1995 $ 6,085,000 $ 6,085,000 1996 9,765,000 9,765,000 Series 1995 $ 665,000 1996 2,020,000 The trust account assets and the liabilities for the defeased bonds are not included in the City’s financial statements. At February 29, 2004, the following remaining outstanding balances are considered defeased: The outstanding balances of Series 1995 and 1996, not defeased at February 29, 2004, are recorded as a liability in the City’s financial statements. Those balances are as follows: Business-type Activities In 1999, the City defeased a portion of Series 1994, Series 1995, and Series 1996 Corporate Purpose bonds, by placing a portion of the proceeds of Series 1999 Bonds in an irrevocable trust to provide for the advance refunding of the callable portion of the bonds. -61- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements -62- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 10. LONG-TERM DEBT - Continued G. Legal Debt Margin 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: H. Industrial Revenue Bonds NOTE 11. FUND EQUITY A. Restrictions of Retained Earnings - Water Fund 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 principal amount of general obligation debt, which is to be paid through property taxes, shall not at any one time exceed seventy-five million dollars ($75,000,000). As of February 29, 2004, the amount of direct debt of the City appearing in the direct and overlapping debt statistical table is $70,035,896. 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. The City has 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 aggregate amount of all such obligations outstanding as of February 29, 2004 is $1,157,263. 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, Improvementand Extension Account”, and “Surplus Revenue Account”. Descriptions of each follow: “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 valoremproperty 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 percentage amounts.” Bond and Interest Account - All amounts required to be set aside for the purpose of paying principal and interest of outstanding Water Revenue bonds shall be set aside monthly as directed. In addition, there shall be credited monthly an amount at least equal to the sum of one-fifth of the interest becoming due on the next interest payment date and one-tenth of the aggregate yearly amount of principal due on the next principal maturity date. -63- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 11. FUND EQUITY - Continued A. Restrictions of Retained Earnings - Water Fund - Continued Surplus Revenue Account - All revenues remaining after all other credits in the Water Fund have been made shall be credited to this account and be used for: making up any deficiency necessary to credit prior accounts with the required amounts; paying principal of, or interest on, any junior lien bonds; transfer to any other account of the fund; and any lawful corporate purpose, at the discretion of the City Council. Depreciation, Improvementand 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 improvement or extension of the system. The funds may be used at any time to pay principal of, or interest upon, any outstanding bonds payable whenever there are 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. -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 11. FUND EQUITY - Continued B. Restrictions of Fund Equity City General Fund Restricted for encumbrances $ 698,796 Restricted for Arts Council 34,375 Restricted for private elm trees 86,075 Restricted for Butterfield sculpture 31,833 Restricted for scholarship contributions 37,253 Restricted for public library acquisitions 214,980 Restricted for recreation group activities 195,222 Restricted for IMRF 3,200,000 Other reserves 166,373 Total General Fund 4,664,907 Special Revenue Funds Restricted for notes receivable 4,648,623 Debt Service Funds Restricted for debt service 23,916,714 Capital Projects Funds Restricted for notes receivable 184,849 Townshi General Assistance Fund Restricted for prepaid items 820 Total Restricted Fund Equity - Governmental Funds $33,415,913 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: -64- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 11. FUND EQUITY - Continued B. Restrictions of Fund Equity - Continued Fiduciary Funds Firefighters Pension Fund Restriction for employee pension benefits $ 37,028,755 Police Pension Fund Restriction for employee pension benefits 53,962,667 Total Fiduciary Funds $90,991,422 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 $ 258,496 Special Revenue Fund Specific Capital Project Motor Fuel Tax 2,597,643 Librar 2,212,792 Total Special Revenue Fund 4,810,435 Capital Projects Fund Specific capital project Capital Improvement 15,405,783 Central Business Tax Increment Distric 3,525,845 Washington National Tax Increment Distric 34,160,470 Special Assessment 913,369 Total Capital Projects Fund 54,005,467 Unrestricted Fund Equity - Designate $ 59,074,398 The Township has no designated unrestricted fund equity. -65- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 12. 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 repalce 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 2002 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. -66- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 13. 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, 2002 $ 1,678,265 $ 19,935,631 $ 21,613,896 New claims and/or estimate revisions 251,309 4,083,368 4,334,677 Claims payments (232,862) (2,776,000) (3,008,862) February 28, 2003 1,696,712 21,242,999 22,939,711 New claims and/or estimate revisions 717,987 5,144,300 5,862,287 Claims payments (358,546) (277,800) (636,346) February 29, 2004 $ 2,056,153 $ 26,109,499 $ 28,165,652 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. 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. -67- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 13. RISK MANAGEMENT - CLAIMS AND JUDGMENTS – Continued NOTE 14. SUBSEQUENT EVENTS NOTE 15. CONTINGENCIES NOTE 16. JOINT VENTURES A. Northwestern University 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. 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 has filed post trial motion in the matter of Magaly PradoDevaul, et al., v. Tracy Parham, et al, after judgment of $11,038,431 against the City in the year 2002. The Judge decided against the City. The City filed appeal with the Illinois Appellate Court - First District in July 2003. The City issued Series 2004 $13,355,000 generalobligationbonds in April 2004. The proceeds are being used to partially finance the City's long-range capital improvement program. The City also issued Series 2004B $11,730,000 general obligationbonds in July 2004. The proceeds are being used to advance refund $11,085,000 of the City's outstanding General Obligation Corporate Purpose bonds, Series 1997. The City closed the Sherman Avenue parking garage in the spring, 2004. Plans are underway and funding has been secured to build a new parking facility in the same block. Demolition was scheduled to start in August, 2004. -68- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 16. JOINT VENTURES – Continued A. Northwestern University - Continued Summary of Financial Position as of December 31, 2002: Current assets $ 47,408 Total assets $47,408 Common stock $ 1,000 Paid-in capital 6,752,898 Retained earnings (6,706,490) Total equity 47,408 Total liabilities and equity $47,408 Continued The City and Northwestern formed a for-profit corporation known as TOPCORP to buy and hold land for park development. The City and Northwestern each acquired 50% of the stock and each was entitled to elect and replace three directors. At the same time Research Park, Inc. (RPI) was incorporated as a wholly owned subsidiary of TOPCORP. The mission of RPI was to promote and market the park land to private developers. RPI was governedby a Board of Directors consistingof sevenmembersappointed by the City and sevenmembers appointed by Northwestern. In 1996, TOPCORP and RPI were merged and the resultant entity renamed Northwestern University/Evanston Research Park, Inc. All the existing management and loan agreements were assumed by the new corporation. 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. The audited consolidated financial information of Northwestern University/EvanstonResearch Park, Inc. at and for the year ended December 31, 2002 is summarized below. Audited financial information for calendar year 2003 was not available at the time this report was published. The City has sold three parcels of land to TOPCORP since 1989 with a total sales price of $2,314,515. The sales were financed by long-term promissory notes. On July 24, 2000, the Evanston City Council voted to release the mortgage on these properties in exchange for an immediate payment of $900,000 in order to facilitate redevelopment. Under this agreement, the City allowed the land (which will remain on the tax rolls) to be sold. -69- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 16. JOINT VENTURES – Continued A. Northwestern University – Continued Summary of Revenues and Expenses for the year ended December 31, 2002: Total revenues $ 219 Total expenses (11,797) Net income $ (11,578) B. Solid Waste Agency of Northern Cook County The WheelingTownship transfer station commencedoperations on February 1, 1994. The Agency applied for a permit to developthe balefill site from the U.S. Army Corps of Engineers(Army) on February 8, 1990. On July 21, 1994, the Army denied the Agency's revised permit application. The balefill site cannot be developed as planned unless the Army's decisionis overturnedby the courts. Due to the UnitedStates Court of Appeals for the Seventh Circuit’s decision to affirm the trial court’s ruling and the uncertainty that the United States Supreme Court will hear the Agency’sappeal, an adjustment was recorded in the Agency’sfinancial statements in 1999 to record the Project’s carrying value at its net realizable value. In January 2001, the United States Supreme Court overturned the Seventh Circuit Court’s decision. On May 14, 2001, the case was dismissed. On May 9, 2001, the Agency’sBoard of Directors authorized agency staff to enter into negotiationsto sell 284 acres of the balefill property to the State of Illinois for approximately $21 million, leaving the Agency with 126.5 acres of land which could not be developed as a balefill. During 2002, the Agency recorded a gain on sale of balefill land of a roximatel $16 532 000 which is included in the 2002 statement of o eratio 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 Project is planned to consist of a balefill site and a transfer station located in Wheeling Township. The City’s investment is immaterial and, therefore, not recorded in these statements. Complete financial statements for the Research Park can be obtained at NorthwesternUniversity/EvanstonResearch Park Inc., Suite 200, 1710 Orrington Avenue, Evanston, IL 60201. -70- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 16. JOINT VENTURES – Continued B. Solid Waste Agency of Northern Cook County- Continued Summary of Financial Position as of April 30, 2003: Current assets $ 8,953,036 Restricted assets 2,277,898 Property, plant, and equipment 15,519,705 Debt issuance costs, net 275,559 Total assets $27,026,198 Current liabilities $ 5,180,466 Long-term debt, net of unamortized discount 12,032,644 Contributed capital 4,723,340 Retained earnings 5,089,748 Total liabilities and fund equity $27,026,198 (continued) 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. 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. 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. -71- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 16. JOINT VENTURES – Continued B. Solid Waste Agency of Northern Cook County- Continued Summary of Revenues and Expenses for the Year Ended April 30, 2003: Total revenues $ 24,749,136 Total expenses (18,122,658) Net gain $6,626,478 Complete financial statements for the agency can be obtained at 1616 East Golf Road, Des Plaines, IL 60016. C. Evanston Housing Corporation 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. The notes bear no interest. However, the City is entitledto a certain net sales considerationupon 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 semi-annually to the holders on a pro-rata basis based on the amount of each note held to the total outstanding notes. The City agreed to jointly participate with various lending institutions in a not-for-profit housing mortgage corporation by approval of the City Council on May 22, 1989. The purpose of the corporation is to lend mortgage funds to qualified, income eligible, first-time homebuyers in the City of Evanston. -72- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 16. JOINT VENTURES – Continued C. Evanston Housing Corporation - Continued Statement of Financial Position as of December 31, 2003: Cash and cash equivalents $ 3,134,293 Accrued Interest 218 Total assets 3,134,511 Payables and accrued expenses 70,511 Notes payable 3,064,000 Total liabilities 3,134,511 Net Assets $- Statement of Activities for the Year Ended December 31, 2003: Total revenues $ 122,987 Total operating expenses 122,987 Excess of revenues over expense $ - NOTE 17. DEFERRED COMPENSATION PLAN The audited financial statements of Evanston Housing Corporation for the year ended December 31, 2003 are summarized as follows: The City provides the Corporation with office space and staff support on a cost reimbursementbasis. Complete financial statements for the Corporation can be obtained in the City's CommunityDevelopmentDepartment from the Assistant Director, Housing Rehabilitation and Property Standards. The 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. -73- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 17. DEFERRED COMPENSATION PLAN - Continued Plan balance at February 29, 2004 $24,263,952 NOTE 18. DEFINED BENEFIT PENSION PLANS Illinois Municipal Retirement Fund A. Plan Description The Employer Pension Contribution Fund is a special revenue fund and uses the modified accrual basis of accounting. The tax revenues are recognized when measurable and available. The expenditures are recorded when the liability is incurred, which is when the revenue is recognized. The City created a special revenue fund, the Employer Pension Contribution Fund, to accommodate the pension accounting requirements. This fund recognizesthe appropriate tax revenues for the City on behalf of the Pension Trust Funds and contributes those amounts into the Pension Trust Funds as a contribution. 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 maintains two separate single-employerretirementplans establishedby state statute for the City’s police officers and firefighters. The City also participates in the Illinois Municipal Retirement Fund (IMRF), a statewi multiple-employerpublic employee retirement system which acts as investment and administrative agent. The IMRF plan covers substantially all of the City’s employees other than police officers and firefighters. The City 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 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. -74- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. DEFINED BENEFIT PENSION PLANS - Continued Illinois Municipal Retirement Fund - Continued B. Funding Status and Progress C. Annual Pension Cost 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 2003 and 2002 were 1.74% and 1.07%, respectively, of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. The City’s total payroll for the calendar year ended December 31, 2003 was $51,224,349. Of this amount, $29,240,514 in payroll earnings were reported to and coveredby the IMRF system. The Township’s total payroll for the year ended December 31, 2002 was $338,707. Of this amount, $338,707 in payroll earnings were reported to and covered by the IMRF plan. For December 31, 2003, the City’s annual pension cost of $508,785 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 2003 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, 2003 was 10 years. -75- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. 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 12/31/03 $ 508,785 100% - 12/31/02 285,616 100% - 12/31/01 541,743 100% - Actuarial Percentage Valuation Annual Pension of APC Net Pension Date Cost (APC) Contributed Obligation 12/31/02 $ 4,302 100% - 12/31/01 7,491 100% - 12/31/00 9,958 100% - Three-Year Trend Information for IMRF - Township Three-Year Trend Information for IMRF - City For December31, 2002, the Township’s annual pension cost of $4,302 was equal to the Township’s requiredand 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% 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) 3% per year cost-of-living adjustments. 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 2001 actuarial valuation were based on the 1996-1998 experience study. However, the 2002 actuarial valuation information shown on the Schedule of Funding Progress is based on the assumptions derived from the 1999-2001 Experience Study. The effect of the assumption change increased the unfunded actuarial accrued liability by $1,986. -76- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. DEFINED BENEFIT PENSION PLANS – Continued Police and Firefighters Pension Plans D. Plan Descriptions Participation in the plans at February 29, 2004 was: Police Firefighters Retirees, disabled participants and beneficiaries of deceased retirees currently receiving benefits 139 105 Active plan members 158 110 Total 297 215 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 29, 2004 was $10,074,000 and $7,493,000, respectively. -77- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18.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 8.455% 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. -78- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters Pension Plans – Continued F. Contributions and Reserves – Continued Police Firefighters Annual required contribution $ 3,505,934 $ 2,685,046 Interest on net pension obligation 490,154 266,683 Adjustment to annual required contribution (400,322) (217,916) Annual pension cost 3,595,766 2,733,813 Contributions made (3,283,576) (2,420,067) Increase in net pension obligation 312,190 313,746 Net pension obligation at March 1, 2002 6,535,390 3,555,770 Net pension obligation at February 28, 2003 $ 6,847,580 $ 3,869,516 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, 2003) 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 City’s actuary. -79- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. DEFINED BENEFIT PENSION PLANS - Continued Police and Firefighters Pension Plans – Continued H. Three-Year Trend Information – Pension Trust Funds Fiscal Annual Pension Percentage of Net Pension Year Ended Cost (APC)APC Contributed Obligation Police 2/28/03 $ 3,595,566 99.02 % 6,847,380$ 2/28/02 3,316,227 98.10 6,535,390 2/28/01 3,082,319 97.96 6,242,817 Firefighters 2/28/03 $ 2,733,813 100.63 % 3,869,516$ 2/28/02 2,404,855 99.04 3,555,970 2/28/01 2,260,662 99.05 3,390,091 The required supplementary information immediately follows the Notes to the Financial Statements. -80- 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 2,959,120$ 3,393,095$ 6,352,215$ Receivables Accrued interest 89,324 221,814 311,138 Due from other funds 1,175,786 1,559,483 2,735,269 1,265,110 1,781,297 3,046,407 Investments, at fair value U.S. Government obligations 14,073,155 24,102,445 38,175,600 Common stock 3,874,943 - 3,874,943 Mutual funds 14,138,355 24,707,680 38,846,035 Insurance company contracts - separate accounts 731,832 - 731,832 32,818,285 48,810,125 81,628,410 37,042,515 53,984,517 91,027,032 Liabilities Vouchers payable 13,760 18,557 32,317 Due to other funds - 3,293 3,293 13,760 21,850 35,610 Net assets held in trust for pension benefits 37,028,755$ 53,962,667$ 90,991,422$ -81- CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements NOTE 18. 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 2,515,828$ 3,371,248$ 5,887,076$ Plan members 611,657 1,063,146 1,674,803 3,127,485 4,434,394 7,561,879 Investment income Net appreciation in fair value of investments 2,844,123 4,930,532 7,774,655 Interest 666,592 1,361,480 2,028,072 Total investment income 3,510,715 6,292,012 9,802,727 Less investment expense 134,529 100,649 235,178 Net investment income 3,376,186 6,191,363 9,567,549 6,503,671 10,625,757 17,129,428 Deductions Benefits 3,159,762 4,779,460 7,939,222 Refunds of contributions - 93,453 93,453 Administrative expense 13,944 44,656 58,600 Total deductions 3,173,706 4,917,569 8,091,275 Net increase 3,329,965 5,708,188 9,038,153 Net assets held in trust for pension benefits Beginning of year 33,698,790 48,254,479 81,953,269 End of year 37,028,755$ 53,962,667$ 90,991,422$ -82- THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION CITY OF EVANSTON, ILLINOIS Firefighters Pension Fund, Police Pension Fund, and Illinois Municipal Retirement Fund Schedules of Funding Progress Required Supplementary Information Actuarial Percentage Actuarial Value of Funded Covered of Covered Valuation Assets Ratio Payroll Payroll Date (a) (a/b) ( c ) ((b-a)/c) Firefighters Pension 3/1/2003 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 3/1/2003 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) 12/31/2003 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) 12/31/2002 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. (b) Unfunded AAL (UAAL) (b-a) February 29, 2004 Actuarial Accrued Liability (AAL) Projected Unit Credit -83- 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 2003 2,685,046$ N/A 3,505,934$ N/A 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 29, 2004 Firefighters Pension Fund Police Pension Fund -84- 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 29, 2004 Original and Final Budget Actual Variance Revenues Taxes $ 35,666,800 $ 38,266,201 $ 2,599,401 Licenses and permits 5,834,500 6,699,058 864,558 Intergovernmental 13,566,400 13,748,351 181,951 Charges for services 5,879,000 5,996,802 117,802 Fines 4,062,600 4,162,610 100,010 Investment income 200,000 205,456 5,456 Miscellaneous 4,445,500 4,558,698 113,198 Total Revenues 69,654,800 73,637,176 3,982,376 Expenditures General management and support 12,752,400 11,381,264 1,371,136 Public safety 25,526,900 27,127,119 (1,600,219) Public works 10,763,400 11,109,477 (346,077) Health and human resource development 4,222,400 4,674,986 (452,586) Recreation and cultural opportunities 13,843,600 14,157,026 (313,426) Housing and economic development 2,480,100 2,537,220 (57,120) Pensions 3,990,000 2,687,984 1,302,016 Total Expenditures 73,578,800 73,675,076 (96,276) (Deficiency) of Revenues (under) Expenditures (3,924,000) (37,900)3,886,100 Other Financing Sources (Uses) Operating transfers in (out) Motor Fuel Tax Fund 750,000 750,000 - Housing Fund 30,000 30,000 - Central Business Tax Increment - District Debt Service Fund 250,000 250,000 - Washington National TIF DS Fund 130,000 130,000 - Howard Hartrey TIF DS Fund 100,000 100,000 - Southwest TIF DS Fund 20,000 20,000 - Maple Garage Fund - (200,000) (200,000) Capital Improvement Fund 250,000 250,000 - Special Assessment Capital Project Fund 30,000 30,000 - Water Fund 2,539,000 2,539,000 - Insurance Fund (2,000,000)(2,000,000) General Obligation Debt Service Fund (175,000) (175,000)- 3,924,000 1,724,000 (2,200,000) Excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses -$ 1,686,100 1,686,100$ Fund Balance Beginning of year 25,134,988 End of yea 26,821,088$ -85- 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, 2003 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 Actuarial assumptions: Investment rate of return 7.50% Projected salary increases 4.50% Attributable to inflation 4.00% Attributable to seniority/merit 0.50% NOTE 2. BUDGETS AND BUDGETARY ACCOUNTING 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. 0.50% 7.50% 4.50% 4.00% 30 years Fair market value Level percentage of payroll, closed period 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 revisionsthat alter the total expendituresof any fund must be approved by the City Council. The budget was not amended during the 2002/03 fiscal year. Police Pension Fund March 1, 2003 Projected Unit Credit -86- CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 2. BUDGETS AND BUDGETARY ACCOUNTING – Continued 5. Blended Component Unit The following City and Township funds do not have legally adopted budgets: Special Revenue Library, Neighborhood Improvement, HOME, Community Development Loan Capital Projects Library, Capital Improvements, Central Business Tax Increment District, Special Assessment The Township prepares its annual appropriation ordinance, which is synonymouswith its budget, using the modifiedaccrual basis of accounting. The appropriation ordinancewas adopted on June 25, 2002. It covers both Township funds. The level of control (level at which expenditures may not exceed budget) is the fund. All unencumbered annual appropriations lapse at the fiscal year-end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is 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. The Township follows procedures similar to those of the City in establishingthe budgetary data reflected in the financial statements. The budget was not amended during the current fiscal year. Budgets are legally adopted on a basis consistent with GAAP except that (1) property taxes are budgeted as revenue in the year they are levied, (2) debt service payments are budgeted upon tax levy for such purposes, (3) encumbrances are recorded as the equivalent of expenditures for budget purposes, and (4) interest earned on escrow accounts is budgetedas revenue in the year of debt repayment rather than when earned. For purposes of preparing the General Fund - Budget and Actual (Budgetary Basis) Scheduleof Revenues,Expendituresand Changes in Fund Balance, GAAP revenues and expenditures have been adjusted to the budgetary basis. -87- CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 2. BUDGETS AND BUDGETARY ACCOUNTING – Continued Special Debt General Revenue Service Fund Funds Funds Revenues GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances $ 73,281,405 $ 8,795,937 $ 16,549,440 Increase (decrease) due to budgeting property taxes as revenue in the year of levy 355,771 9,152 356,068 GAAP revenues of nonbudgeted funds* - (415,750) - Budgetary Basis Revenue $ 73,637,176 $ 8,389,339 $ 16,905,508 Expenditures GAAP basis revenues as reported in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances $ 73,689,552 $ 6,541,655 $ 15,520,751 Increase (decrease) due to Encumbrances - March 1, 2003 (713,272) - - Encumbrances - February 29, 2004 698,796 - - Decrease due to budgeting debt service - payments based upon tax levy for such purposes - - (654,342) GAAP expenditures of nonbudgeted funds* - (189,730) - Budgetary Basis Expenditure $ 73,675,076 $ 6,351,925 $ 14,866,409 Adjustments necessary to convert City revenues and expenditures for the year ended February 29, 2004 on the GAAP basis to the budgetary basis are presented below: *The Community Development Loan Fund, the HOME Fund, the Library Fund, and the Neighborhood ImprovementFund do not have annual budgets. Therefore, budgetary actual amounts excludethese funds so as to allow for valid comparisons with total budget amounts. -88- CITY OF EVANSTON, ILLINOIS Notes to the Required Supplementary Information NOTE 3. EXCESS OF ACTUAL EXPENDITURES OVER BUDGET IN INDIVIDUAL FUNDS Fund Actual Budget Excess General Fund $ 73,675,076 $ 73,578,800 $ 96,276 Economic Development Fund 606,870 577,200 29,670 General Obligation Debt Service Fund 9,980,098 8,578,099 1,401,999 Central Business Tax Increment City Fund 1,050,730 680,500 370,230 Howard Hartrey Debt Service Fund 2,062,620 870,918 1,191,702 Motor Vehicle Parking Fund 2,854,109 2,153,000 701,109 Water Fund 7,056,290 6,513,200 543,090 Fleet Services Fund 2,743,468 2,509,300 234,168 Insurance Fund 7,814,005 1,900,500 5,913,505 The followingCity funds had an excess of actual budgetary expenditures over original and final budget for the year ended February 29, 2004: -89- THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENTAL FUND TYPES City Funds Mayor's Special Housing Fund - to account for costs associated with housing-related programs of the City. Community Development Loan Fund - to account for residential rehabilitation loans to residents. 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 Fund - to account for the operation of street maintenance programs and capital projects as authorized by the Illinois Department of Education. Financing is provided from the City's share of gasoline taxes. HOME Fund - 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 Fund - 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 Fund - 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. Economic Development Fund - 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 Fund - to account for revenues and expenditures for 911 emergency telephone service. Financing is provided by network connection surcharges. Library Fund - 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 Fund - 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. Employer Pension Contribution Fund - 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. Continued Township Funds Town Fund - to account for general adminstrative services. Debt Service Funds are used to account for the servicing of general long-term debt. Southwest Tax Increment District Fund - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Special Revenue Funds - Continued General Assistance Fund - to account for the assistance given to persons and/or families to meet their basic living expenses. Debt Service Funds Special Assessment Fund - to account for capital improvements financed by special assessments on property holder and public benefit contributions from the City. Library Fund - to account for the design and building of a new public library to be financed primarily by general obligation bond proceeds and state income tax surcharge revenues. Capital Improvements Fund - 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. Howard Hartrey Tax Increment District Fund - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Washington National Tax Increment District Fund - accumulated monies for the principal and interest payments on debt issued for this special taxing district. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Special Service District No. 5 Fund - accumulated monies for the principal and interest payments on unlimited ad valorem tax bonds issued for this special taxing district. Central Business Tax Increment District Fund - accumulated monies for the principal and interest payments on debt 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 2,479,025$ 131,935$ 223,251$ 32,779$ Investments - 1,000,000 2,000,000 2,175,576 Receivables Property taxes (net of allowances) Current year levy - - - - Notes - - - - Special assessments - - - - Accrued interest - - - 4,437 Other - 49,985 221,953 - Due from other governments 184,658 - - - Due from other funds - - 536 - Prepaid items - - - - Total Assets 2,663,683$ 1,181,920$ 2,445,740$ 2,212,792$ Liabilities Vouchers payable 66,040$ 15,100$ 105,475$ -$ Accrued payroll - 1,281 4,529 - Other - - - - Due to other governments - - - - Due to other funds - 2,745 38,116 - Deferred revenues - - - - Total Liabilities 66,040 19,126 148,120 - Fund Balances Restricted for notes receivable - - - - Restricted for prepaid items - - - - Restricted for debt service - - - - Unrestricted Designated for specific capital projects 2,597,643 - - 2,212,792 Undesignated - 1,162,794 2,297,620 - Total Fund Balances 2,597,643 1,162,794 2,297,620 2,212,792 Total Liabilities and Fund Balances 2,663,683$ 1,181,920$ 2,445,740$ 2,212,792$ - 90 - Special Revenue Liabilities and Fund Balances February 29, 2004 Assets Special Employer Mayor's Community Community Service Pension Total Neighborhood Special Development Development District Contribution City Improvement Housing HOME Block Grant Loan No. 4 Fund Funds 482,074$ 35,633$ 227,543$ (5,869)$ 803,533$ 755$ -$ 4,410,659$ - - - - - - - 5,175,576 - - - - - 224,380 4,894,076 5,118,456 - 1,742,499 1,376,100 12,799 1,517,225 - - 4,648,623 - - - - - - - - - - - - - - - 4,437 - 25,000 - - 32,533 - - 329,471 - - - 48,429 - - - 233,087 20,404 10,000 - 29 - - - 30,969 - - - - - - - - 502,478$ 1,813,132$ 1,603,643$ 55,388$ 2,353,291$ 225,135$ 4,894,076$ 19,951,278$ -$ -$ -$ 22,140$ 13,011$ -$ -$ 221,766$ - - - 2,592 - - - 8,402 - - - - 589 - - 589 - - 170,607 - 822,337 - - 992,944 - 90,636 10,000 17,857 129 24,673 1,587,352 1,771,508 - - - - - 142,694 3,306,724 3,449,418 - 90,636 180,607 42,589 836,066 167,367 4,894,076 6,444,627 - 1,742,499 1,376,100 12,799 1,517,225 - - 4,648,623 - - - - - - - - - - - - - - - - - - - - - - - 4,810,435 502,478 (20,003) 46,936 - - 57,768 - 4,047,593 502,478 1,722,496 1,423,036 12,799 1,517,225 57,768 - 13,506,651 502,478$ 1,813,132$ 1,603,643$ 55,388$ 2,353,291$ 225,135$ 4,894,076$ 19,951,278$ Continued - 91 - Special Revenue CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Total Town General Township Fund Assistance Funds Cash and equivalents 336,998$ 267,065$ 604,063$ Investments - - - Receivables Property taxes (net of allowances) Current year levy 210,920 559,144 770,064 Notes - - - Special assessments - - - Accrued interest - - - Other - 117 117 Due from other governments - - - Due from other funds - - - Prepaid items - 820 820 Total Assets 547,918$ 827,146$ 1,375,064$ Liabilities Vouchers payable 6,272$ 52,015$ 58,287$ Accrued payroll - - - Other - - - Due to other governments - 4,772 4,772 Due to other funds - - - Deferred revenues 203,103 539,167 742,270 Total Liabilities 209,375 595,954 805,329 Fund Balances Restricted for notes receivable - - - Restricted for prepaid items - 820 820 Restricted for debt service - - - Unrestricted Designated for specific capital projects - - - Undesignated 338,543 230,372 568,915 Total Fund Balances 338,543 231,192 569,735 Total Liabilities and Fund Balances 547,918$ 827,146$ 1,375,064$ - 92 - Special Revenue February 29, 2004 Assets Liabilities and Fund Balances Central Special Business Service Tax Howard Washington District Increment Southwest Hartrey National No.5 District TIF TIF TIF Total 43,514$ 8,589,627$ 839,991$ 1,521,647$ 4,305,583$ 15,300,362$ - - - - - - 384,968 4,091,662 265,135 1,168,809 946,449 6,857,023 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 101,364 536 - - 19,870 121,770 - - - - - - 529,846$ 12,681,825$ 1,105,126$ 2,690,456$ 5,271,902$ 22,279,155$ -$ 3,116$ 600,000$ -$ 8,750$ 611,866$ - - - - - - - - - - - - - - - - - - 33,557 5,287 - - 17,792 56,636 231,791 2,982,609 1,539 584,405 486,032 4,286,376 265,348 2,991,012 601,539 584,405 512,574 4,954,878 - - - - - - - - - - - - 264,498 9,690,813 503,587 2,106,051 4,759,328 17,324,277 - - - - - - - - - - - - 264,498 9,690,813 503,587 2,106,051 4,759,328 17,324,277 529,846$ 12,681,825$ 1,105,126$ 2,690,456$ 5,271,902$ 22,279,155$ Continued - 93 - Debt Service CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet - Continued Total Nonmajor Capital Special Governmental Library Improvements Assessment Total Funds Cash and equivalents -$ 16,148,025$ 23,196$ 16,171,221$ 36,486,305$ Investments - - 862,874 862,874 6,038,450 Receivables Property taxes (net of allowances) Current year levy - - - - 12,745,543 Notes - 88,200 - 88,200 4,736,823 Special assessments - - 1,014,798 1,014,798 1,014,798 Accrued interest - 914 - 914 5,351 Other - - - - 329,588 Due from other governments - - - - 233,087 Due from other funds - - 27,598 27,598 180,337 Prepaid items - - - - 820 Total Assets -$ 16,237,139$ 1,928,466$ 18,165,605$ 61,771,102$ Liabilities Vouchers payable -$ 732,713$ -$ 732,713$ 1,624,632$ Accrued payroll - - - - 8,402 Other - - - - 589 Due to other governments - - - - 997,716 Due to other funds - 10,443 299 10,742 1,838,886 Deferred revenues - - 1,014,798 1,014,798 9,492,862 Total Liabilities - 743,156 1,015,097 1,758,253 13,963,087 Fund Balances Restricted for notes receivable - 88,200 - 88,200 4,736,823 Restricted for prepaid items - - - - 820 Restricted for debt service - - - - 17,324,277 Unrestricted Designated for specific capital projects - 15,405,783 913,369 16,319,152 21,129,587 Undesignated - - - - 4,616,508 Total Fund Balances - 15,493,983 913,369 16,407,352 47,808,015 Total Liabilities and Fund Balances -$ 16,237,139$ 1,928,466$ 18,165,605$ 61,771,102$ Concluded - 94 - Liabilities and Fund Balances Capital Projects February 29, 2004 Assets CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Emergenc Moto Economi Telephon Neighborhoo Fuel Tax Developmen Syste Library Improvemen Revenue Taxes -$ 1,316,837$ 1,142,762$ -$ 20,000$ Special assessments - - - - - Intergovernmenta 2,119,189 - - - - State allotmen - - - - - Investment incom 25,809 729 1,504 427,304 405 Earnfare - - - - - SSI reimbursemen - - - - - Replacement tax - - - - - Emergency assistance reimbursemen - - - - - Miscellaneou - - 312 66,385 - Total Revenue 2,144,998 1,317,566 1,144,578 493,689 20,405 Expenditures Current General management and support - - - - - Public safet - - 902,291 - - Health and human resource development - - - - - Recreation and cultural opportunities - - - 76,000 - Housing and economic developmen - 606,870 - - - Debt servic Principal - - - - - Interest - - - - - Fiscal agent fee - - - - - Capital outla 959,773 - - - - Total Expenditures 959,773 606,870 902,291 76,000 - Excess (Deficiency) of Revenues Over (Under) Expenditures 1,185,225 710,696 242,287 417,689 20,405 Other Financing Sources (Uses) Proceeds from sale of bonds - - - - - Escrow funding - - - - - Transfers in (out) General Fund (750,000) - - - - CD Loan Fund - - - - - Home Fun - - - - - Town Fund - - - - - General Assistance Fund - - - - - General Obligation Debt Service Fun - - (213,400) - - Washington National Tax Increment Distric - - - - - Central Business Tax Increment Distric - - - - - Capital Improvements Fun - - - - - SSD#5 Fund - - - - - Sewer Fun - - - - - Water Fund - - - - - Washington National Capital Project Fund - 91,781 - - - Maple Avenue Garage Fun - (590,000) - - - Total Other Financing Sources (Uses (750,000) (498,219) (213,400) - - Net Change in Fund Balances 435,225 212,477 28,887 417,689 20,405 Fund Balances -Beginning of Yea 2,162,418 950,317 2,268,733 1,795,103 482,073 Fund Balances - End of Year 2,597,643$ 1,162,794$ 2,297,620$ 2,212,792$ 502,478$ - 95 - Year ended February 29, 2004 Special Revenu Specia Employe Mayor'Communit Communit Servic Pension Total Specia Developmen Development Distric Contribution Cit Housing HOM Block Gran Loan No. 4 Fund Funds -$ -$ -$ -$ 233,418$ 5,887,076$ 8,600,093$ - - - - - - - - 91,285 2,301,138 (255,382) - - 4,256,230 - - - - - - - 7,219 39,930 - 23,840 88 - 526,828 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18,987 1,983 39,857 - - - 127,524 26,206 133,198 2,340,995 (231,542) 233,506 5,887,076 13,510,675 - - - - - - - - - - - - 5,887,076 6,789,367 - - - - - - - - - - - - - 76,000 39,644 62,868 2,340,995 50,862 245,000 - 3,346,239 - - - - - - - - - - - - - - - - - - - - - - - - - - - 959,773 39,644 62,868 2,340,995 50,862 245,000 5,887,076 11,171,379 (13,438) 70,330 - (282,404) (11,494) - 2,339,296 - - - - - - - - - - - - - - (30,000) - - - - - (780,000) - (9,046) - - - - (9,046) - - - 9,046 - - 9,046 - - - - - - - - - - - - - - - - - - - - (213,400) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 91,781 - - - - - - (590,000) (30,000) (9,046) - 9,046 - - (1,491,619) (43,438) 61,284 - (273,358) (11,494) - 847,677 1,765,934 1,361,752 12,799 1,790,583 69,262 - 12,658,974 1,722,496$ 1,423,036$ 12,799$ 1,517,225$ 57,768$ -$ 13,506,651$ Continued - 96 - Special Revenu CITY OF EVANSTON, ILLINOIS Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Continue Central Special Business Southwest Tota Servic Tax Tax Town General Township Distric Incremen Incremen Fund Assistance Funds No.5 Distric Distric Revenue Taxes 287,638$ 734,960$ 1,022,598$ 433,730$ 5,285,664$ 498,318$ Special assessments - - - - - - Intergovernmenta - - - - - - State alotmen - - - - - - Investment incom 3,400 4,725 8,125 157 63,095 5,780 Earnfare - 9,767 9,767 - - - SSI reimbursemen - 15,305 15,305 - - - Replacement tax 34,453 - 34,453 - - - Emergency assistance reimbursemen - 80,000 80,000 - - - Miscellaneou 2,090 - 2,090 - - - Total Revenue 327,581 844,757 1,172,338 433,887 5,348,759 504,098 Expenditures Current General management and support 163,984 1,093,368 1,257,352 49,884 368,470 - Public safet - - - - - - Health and human resource development - - - - - 600,000 Recreation and cultural opportunities - - - - - - Housing and economic developmen - - - - - - Debt servic Principal - 50,000 50,000 220,000 310,000 170,000 Interest - - - 152,967 385,664 84,050 Fiscal agent fee - - - - 31,721 - Capital outla - - - - - - Total Expenditures 163,984 1,143,368 1,307,352 422,851 1,095,855 854,050 Excess (Deficiency) of Revenues Over (Under) Expenditures 163,597 (298,611) (135,014) 11,036 4,252,904 (349,952) Other Financing Sources (Uses) Proceeds from sale of bonds - - - - - 1,190,000 Escrow funding - - - - - (1,190,000) Transfers in (out) General Fund - - - - (250,000) (20,000) CD Loan Fund - - - - - - Home Fun - - - - - - Town Fund - 161,531 161,531 - - - General Assistance Fund (161,531) - (161,531) - - - General Obligation Debt Service Fun - - - - - - Washington National Tax Increment Distric - - - - (800,000) - Central Business Tax Increment Distric - - - - - - Capital Improvements Fun - - - 4,409 - - SSD#5 Fund - - - - - - Sewer Fun - - - - - - Water Fund - - - - (40,000) (10,000) Washington National Capital Project Fund - - - - - - Maple Avenue Garage Fun - - - - (2,900,000) - Total Other Financing Sources (Uses (161,531) 161,531 - 4,409 (3,990,000) (30,000) Net Change in Fund Balances 2,066 (137,080) (135,014) 15,445 262,904 (379,952) Fund Balances -Beginning of Yea 336,477 368,272 704,749 249,053 9,427,909 883,539 Fund Balances - End of Year 338,543$ 231,192$ 569,735$ 264,498$ 9,690,813$ 503,587$ - 97 - Special Revenu Debt Service Year ended February 29, 2004 Howard Washington Hartrey National Total Tax Tax Nonmajo Incremen Incremen Capital Specia Governmenta Distric Distric Tota Library Improvement Assessmen Tota Funds 1,199,378$ 1,083,584$ 8,500,674$ -$ -$ -$ -$ 18,123,365$ - - - - - 216,740 216,740 216,740 - - - - 181,101 - 181,101 4,437,331 - - - - 400,000 - 400,000 400,000 34,596 11,311 114,939 - 276,278 63,653 339,931 989,823 - - - - - - - 9,767 - - - - - - - 15,305 - - - - - - - 34,453 - - - - - - - 80,000 - - - - 842,183 59 842,242 971,856 1,233,974 1,094,895 8,615,613 - 1,699,562 280,452 1,980,014 25,278,640 - 1,210 419,564 293 72,540 2,908 75,741 1,752,657 - - - - - - - 6,789,367 - - 600,000 - - - - 600,000 - - - - - - - 76,000 - - - - - - - 3,346,239 1,810,000 125,000 2,635,000 - - - - 2,685,000 434,483 573,997 1,631,161 - - - - 1,631,161 - 129,661 161,382 - - - - 161,382 - - - - 8,800,626 - 8,800,626 9,760,399 2,244,483 829,868 5,447,107 293 8,873,166 2,908 8,876,367 26,802,205 (1,010,509) 265,027 3,168,506 (293) (7,173,604) 277,544 (6,896,353) (1,523,565) - - 1,190,000 - 12,096,185 - 12,096,185 13,286,185 - - (1,190,000) - - - - (1,190,000) (100,000) (130,000) (500,000) - (250,000) (30,000) (280,000) (1,560,000) - - - - - - - (9,046) - - - - - - - 9,046 - - - - - - - 161,531 - - - - - - - (161,531) - - - - (293,488) (280,000) (573,488) (786,888) - - (800,000) - - - - (800,000) - 800,000 800,000 - - - - 800,000 - - 4,409 - - - - 4,409 - - - - (4,409) - (4,409) (4,409) - - - - (3,000,000) - (3,000,000) (3,000,000) (10,000) (40,000) (100,000) - - - - (100,000) - 77,897 77,897 - (3,000,000) - (3,000,000) (2,830,322) - - (2,900,000) - - - - (3,490,000) (110,000) 707,897 (3,417,694) - 5,548,288 (310,000) 5,238,288 328,975 (1,120,509) 972,924 (249,188) (293) (1,625,316) (32,456) (1,658,065) (1,194,590) 3,226,560 3,786,404 17,573,465 293 17,119,299 945,825 18,065,417 49,002,605 2,106,051$ 4,759,328$ 17,324,277$ -$ 15,493,983$ 913,369$ 16,407,352$ 47,808,015$ Conclude - 98 - Debt Service Capital Projects CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Original and Final Budge Actual Variance Taxes Property taxes Current year levy 15,194,300$ 15,194,300$ -$ Prior year levy 25,000 74,470 49,470 Total Property Taxes 15,219,300 15,268,770 49,470 Personal property replacement tax 523,500 597,760 74,260 Other Taxes Auto rental tax 34,000 32,872 (1,128) Sales tax - home rule 5,300,000 5,499,126 199,126 Utility tax 7,350,000 7,986,489 636,489 State use tax 670,000 714,225 44,225 Athletic contest tax 500,000 519,506 19,506 Foreign fire insurance tax 50,000 (58,947) (108,947) Cigarette tax 300,000 179,099 (120,901) Evanston motor fuel tax 320,000 308,210 (11,790) Real estate transfer tax 2,500,000 4,011,084 1,511,084 Poured liquor tax 1,400,000 1,531,964 131,964 Amusement tax - 6,565 6,565 Parking tax 1,500,000 1,669,478 169,478 Total Other Taxes 19,924,000 22,399,671 2,475,671 Total Taxes 35,666,800 38,266,201 2,599,401 Continued Year ended February 29, 2004 - 99 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Licenses and Permits Vehicle licenses 2,020,000$ 2,100,343$ 80,343$ Business licenses 150,000 101,051 (48,949) Long-term care licenses 112,400 108,540 (3,860) Rooming house licenses 180,000 180,774 774 Pet licenses 43,000 42,746 (254) Bicycle licenses 200 40 (160) Farmers' market licenses 14,000 23,780 9,780 Contractors' licenses 60,000 89,391 29,391 Other licenses 2,400 641 (1,759) Building permits 1,600,000 1,916,309 316,309 Plumbing permits 100,000 165,189 65,189 Electrical permits 120,000 175,960 55,960 Elevator permits 55,000 42,874 (12,126) Signs and awning permits 10,000 8,742 (1,258) Combustion equipment permits 150,000 184,249 34,249 Commercial driveway permits 600 740 140 Other permits 200,000 294,540 94,540 Liquor licenses 250,000 288,462 38,462 Fire alarm permit fees - (1,565) (1,565) Cable franchise fee 475,000 627,977 152,977 Nicor franchise fee 49,400 59,614 10,214 Northwestern/Centel easement 97,000 97,104 104 Residents' parking permits 113,000 114,509 1,509 Visitor's parking permits - 18,421 18,421 Sign license fee 30,000 40,230 10,230 Alarm panel franchise fee - 18,000 18,000 Plat approval and sign appeal fees 2,500 397 (2,103) Total Licenses and Permits 5,834,500 6,699,058 864,558 Continued Year ended February 29, 2004 - 100 - 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 -$ 322,944$ 322,944$ Preventive health block grant 55,600 53,976 (1,624) Fire department training grant 600 3,550 2,950 Illinois state health department basic services grant 63,700 47,037 (16,663) Hypertension grant 13,600 - (13,600) Family planning grant 54,500 51,900 (2,600) Hearing and vision grant 6,400 12,700 6,300 Arts Council grants 28,400 20,630 (7,770) Violent crime victim assistance grant 20,000 - (20,000) Federal police grant 79,100 104,344 25,244 Civil defense grants - 12,932 12,932 Retailer and service occupation tax 8,100,000 7,922,537 (177,463) State income tax 4,800,000 4,492,918 (307,082) State highway maintenance 113,000 119,317 6,317 State allotment - 112,063 112,063 Commission on Aging grant 17,800 15,140 (2,660) Other state / county grants - 6,067 6,067 Police training grant 8,000 - (8,000) Dental sealants grant 7,800 4,213 (3,587) Lead grant 4,000 2,526 (1,474) STD-HIV integrated service grant 7,200 1,814 (5,386) Illinois Tobacco Free Community 37,000 25,593 (11,407) Summer food inspections - 600 600 Kid care agreement 8,000 9,606 1,606 HUD emergency shelter grant - 83,021 83,021 Leadbase paint control grant - 121,273 121,273 Genetic education grant 10,200 5,100 (5,100) Tanning parlor inspection - 100 100 Prostate cancer awareness - 448 448 Family case management grant 110,500 184,821 74,321 Infant immunization grant 15,000 - (15,000) Teen parent service program 10,000 10,034 34 Vector prevention grant - 1,135 1,135 Access to care (4,000) 12 4,012 Total Intergovernmental - Revenue from Other Agencies 13,566,400 13,748,351 181,951 Continued - 101 - Year ended February 29, 2004 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 3,844,900$ 3,669,310$ (175,590)$ Recreation - charges - 482 482 Recreation - unreconciled - 2,745 2,745 Total Recreation 3,844,900 3,672,537 (172,363) Library Film rentals 60,000 62,649 2,649 Books, lost and paid 20,000 22,621 2,621 Reserves 4,700 5,616 916 Miscellaneous revenues 4,000 3,526 (474) Rental books 9,000 8,316 (684) Non-resident cards 3,000 3,080 80 Copy machine charges 24,000 26,559 2,559 Library meeting room rentals 8,500 24,978 16,478 Rental income 25,100 25,200 100 State library per capita grant 86,900 92,799 5,899 CD-ROM software rentals 2,800 2,165 (635) Total Library 248,000 277,509 29,509 Continued Year ended February 29, 2004 - 102 - 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 3,000$ 1,465 $ (1,535) Dental clinic fees & check up fees 90,000 76,239 (13,761) Venereal disease program - Skokie 1,500 2,250 750 Birth and death records 224,700 137,242 (87,458) TB nursing services 12,000 12,000 - Flue and pneumonia program - 17,393 17,393 Health clinic fees - immunizations 8,000 3,832 (4,168) Health clinic fees - sexually transmitted disease 5,000 - (5,000) Health clinic fees - TB 2,500 3,360 860 Health clinic fees - lab 11,900 12,048 148 Health clinic fees - food establishment 165,000 150,149 (14,851) Health clinic fees - well child 2,500 - (2,500) Health clinic fees - school physicals 3,500 2,065 (1,435) S.T.D.O. & S.T.D.E. - 6,785 6,785 Emergency dental exam - 140 140 X-Ray - 91 91 Amalgam filling - 895 895 Resin filling - 2,145 2,145 Sedative filling - 95 95 Extraction - 405 405 Pulpotomy - 730 730 Sealant office visit - 649 649 Additional sealant - 77 77 Temporary license fee - 3,251 3,251 Food delivery vehicle - 6,460 6,460 Scavenger truck - 2,250 2,250 Beverage snack vending machine - 21,326 21,326 Food vending machine - 1,770 1,770 Tobacco license - 15,000 15,000 Funeral director license 4,500 7,050 2,550 Temporary funeral direct license - 5,059 5,059 Ambulance services 340,000 399,311 59,311 Towing charges 50,000 38,495 (11,505) Weights and measures examination 1,000 955 (45) Senior taxi coupon sales 55,000 61,816 6,816 Recycling - material sales - 365 365 Background check daycare providers - 500 500 Curb / sidewalk replacement fee - 46,940 46,940 Police report fees 21,500 19,468 (2,032) Continued - 103 - Year ended February 29, 2004 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 1,000$ -$ (1,000)$ Fire cost recovery charges 5,000 5,990 990 Other service charges 5,000 3,280 (1,720) Condo conversion application 44,000 34,390 (9,610) Zoning fees 25,000 47,693 22,693 Alarm panel subscription fees 27,500 151,520 124,020 Skokie animal boarding fees - 510 510 Passport execution fees 9,000 17,208 8,208 Sanitation classes and charges 40,000 67,058 27,058 Wood recycling - 11,615 11,615 Recycling service charge and penalty 628,000 647,421 19,421 Total Other Service Charges 1,786,100 2,046,756 260,656 Total Charges for Services 5,879,000 5,996,802 117,802 Fines Ticket fines 3,400,000 3,375,155 (24,845) Regular fines 170,000 259,098 89,098 Housing code violations 1,000 2,900 1,900 Building code violations 5,000 178 (4,822) Permit penalty fees 5,000 33,386 28,386 Animal ordinance penalties 1,600 - (1,600) False alarm panel fines - fire 40,000 11,761 (28,239) False alarm panel fines - police 100,000 105,575 5,575 Administrative adjudication 130,000 84,296 (45,704) Library fines 160,000 168,766 8,766 Boot release fees 50,000 121,495 71,495 Total Fines 4,062,600 4,162,610 100,010 Continued - 104 - Year ended February 29, 2004 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$ 205,456$ 5,456$ Miscellaneous Charges to Other Funds Charges to Water Fund for administrative expenses 1,045,800 1,038,000 (7,800) Economic Development Fund 250,000 250,000 - Maple Garage Fund 38,300 38,300 - Emergency Telephone System Fund 125,400 125,400 - Community Development Block Grant Fund 1,053,400 922,855 (130,545) Home Fund 37,300 32,868 (4,432) Sewer Fund 591,200 487,200 (104,000) Motor Vehicle Parking System Fund 893,700 893,700 - Fleet Services Fund 116,400 117,400 1,000 Total Charges to Other Funds 4,151,500 3,905,723 (245,777) Miscellaneous Other Revenues Payments in lieu of taxes 27,000 26,000 (1,000) Sales and rentals of property 130,000 93,223 (36,777) Compensation for damage to City property 25,000 91,601 66,601 Parking permits - Ryan Field 12,000 11,670 (330) Miscellaneous 100,000 430,481 330,481 Total Other Revenues 294,000 652,975 358,975 Total Miscellaneous 4,445,500 4,558,698 113,198 Total Revenue 69,654,800$ 73,637,176$ 3,982,376$ Concluded Year ended February 29, 2004 - 105 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Original and Final Budge Actual Variance General Management and Support City Council 267,900$ 270,850$ (2,950)$ City Manager 2,763,300 2,450,130 313,170 City Clerk 192,700 185,323 7,377 Law Department 559,000 565,893 (6,893) Human Resources 1,083,500 1,137,833 (54,333) Finance 1,617,700 1,848,039 (230,339) Facilities management 2,049,900 2,206,133 (156,233) Miscellaneous operating requirements 4,218,400 2,717,063 1,501,337 Total General Management and Support 12,752,400 11,381,264 1,371,136 Public Safety Emergency services and disaster assistance 65,900 51,768 14,132 Police 16,202,700 16,867,553 (664,853) Fire 9,258,300 10,207,798 (949,498) Total Public Safety 25,526,900 27,127,119 (1,600,219) Public Works Municipal service center 243,100 286,005 (42,905) Public Works Director 135,200 148,712 (13,512) City Engineer 1,020,800 1,102,868 (82,068) Traffic Engineer 2,155,200 2,324,721 (169,521) Streets 3,155,600 3,287,146 (131,546) Sanitation 4,053,500 3,960,025 93,475 Total Public Works 10,763,400 11,109,477 (346,077) Continued Year ended February 29, 2004 - 106 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Health and Human Resource Development Health and Human Services Director 331,800$ 260,893$ 70,907$ Health Department 1,797,700 2,348,703 (551,003) Emergency assistance services 258,000 260,682 (2,682) Mental health and community purchased services 1,016,900 1,020,865 (3,965) Commission on Aging 90,300 92,120 (1,820) Subsidized Taxicab Program 212,400 199,209 13,191 Human Relations 515,300 492,514 22,786 Total Health and Human Resource Development 4,222,400 4,674,986 (452,586) Recreation and Cultural Opportunities Library 3,794,600 3,954,342 (159,742) Recreation 6,076,500 6,287,581 (211,081) Parks and forestry 2,825,500 2,795,050 30,450 Ecology Center 344,200 362,444 (18,244) Arts Council 802,800 757,609 45,191 Total Recreation and Cultural Opportunities 13,843,600 14,157,026 (313,426) Housing and Economic Development Community Development administration 179,800 184,936 (5,136) Planning and zoning 718,800 735,910 (17,110) Housing rehabilitation and property standards 661,500 665,551 (4,051) Building code compliance 920,000 950,823 (30,823) Total Housing and Economic Development 2,480,100 2,537,220 (57,120) Pensions Illinois Municipal Retirement Pension 3,990,000 2,687,984 1,302,016 Total Expenditures 73,578,800$ 73,675,076$ (96,276)$ Concluded Year ended February 29, 2004 - 107 - CITY OF EVANSTON, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Intergovernmental allotments 2,000,000$ 2,119,189$ 119,189$ Interest 55,000 25,809 (29,191) Total Revenues 2,055,000 2,144,998 89,998 Expenditures Public Works 2,100,000 959,773 1,140,227 Excess (Deficiency) of Revenues over (under) Expenditures (45,000) 1,185,225 1,230,225 Other Financing (Uses) Operating transfers (out) General Fund (750,000) (750,000) - Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses (795,000)$ 435,225 (1,230,225)$ Fund Balances Beginning of year 2,162,418 End of yea 2,597,643$ Year ended February 29, 2004 - 108 - CITY OF EVANSTON, ILLINOIS Economic Development Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Real estate transfer taxes 1,160,000$ 1,316,837$ 156,837$ Interest 9,500 729 (8,771) Total Revenue 1,169,500 1,317,566 148,066 Expenditures Housing and economic development 577,200 606,870 (29,670) Excess of Revenues over Expenditures 592,300 710,696 118,396 Other Financing Sources (Uses) Operating transfers in (out) Maple Avenue Garage Fund (590,000) (590,000) - Washington National Capital Project Fund - 91,781 91,781 Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses 2,300$ 212,477 (210,177)$ Fund Balances Beginning of year 950,317 End of yea 1,162,794$ Year ended February 29, 2004 - 109 - CITY OF EVANSTON, ILLINOIS Emergency Telephone System Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Enhanced 911 surcharge 1,047,000$ 1,142,762$ 95,762$ Interest 25,000 1,504 (23,496) Miscellaneous - 312 312 Total Revenue 1,072,000 1,144,578 72,578 Expenditures Public Safety 1,150,700 902,291 248,409 Excess (Deficiency) of Revenues over (under) Expenditures (78,700) 242,287 320,987 Other Financing (Uses) Operating transfers (out) General Obligation Debt Service Fund (213,400) (213,400) - Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses (292,100)$ 28,887 320,987$ Fund Balance Beginning of year 2,268,733 End of yea 2,297,620$ Year ended February 29, 2004 - 110 - CITY OF EVANSTON, ILLINOIS Mayor's Special Housing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Revenues Interest 40,000$ 7,219$ (32,781)$ Miscellaneous - 18,987 18,987 Total Revenue 40,000 26,206 (13,794) Expenditures Housing and economic development 216,600 39,644 176,956 Excess (Deficiency) of Revenues over (under) Expenditures (176,600) (13,438) 163,162 Other Financing (Uses) Operating transfers (out) General Fund - (30,000) (30,000) Excess (Deficiency) of Revenues over (under) Expenditures and Other Financing Uses (176,600)$ (43,438) 133,162$ Fund Balance Beginning of year 1,765,934 End of yea 1,722,496$ Year ended February 29, 2004 - 111 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - 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 2,622,261$ 2,301,138$ (321,123)$ Miscellaneous - 39,857 39,857 Total Revenues 2,622,261 2,340,995 (281,266) Expenditures Housing and economic development 2,622,261 2,340,995 281,266 (Deficiency) of Revenues (under) Expenditures -$ - -$ Fund Balances Beginning of year 12,799 End of yea 12,799$ Year ended February 29, 2004 - 112 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) Original and Final Budget Actual Variance Administration/Planning CDBG Administration 333,000$ 296,827$ 36,173$ Fair Housing Assistance 86,000 85,993 7 Total Administration/Planning 419,000 382,820 36,180 Economic Development Ben & Jerry's 23,178 23,178 - MBE/Small Business Assistance 93,000 92,784 216 Total Economic Development 116,178 115,962 216 Housing Housing Rehabilitation Administration 230,000 226,345 3,655 Adaptive Devices 15,000 12,402 2,598 Community Development Administration 100,000 96,588 3,412 Minor Repairs/Painting Assistance - E.N.A.W. 168,150 168,150 - Demolition/Vacant Lot Cleanup Program - 7,835 (7,835) Housing Code Compliance 240,000 202,873 37,127 Total Housing 753,150 714,193 38,957 Neighborhood Revitalization Target Area Tree 23,000 23,000 - Accessible Curb Ramp Program 90,000 35,596 54,404 Fire Safety Education - 21,900 (21,900) Curb/Sidewalk Replacement 90,000 63,228 26,772 F/J Landscape Redesign 232,500 185,842 46,658 Alley Paving - East Clyde 85,000 - 85,000 Harbert Park - 68,085 (68,085) South Evanston Neighborhood Security - 4,115 (4,115) Black American Heritage and Tech Center - 28,308 (28,308) Alley Paving Program 180,000 166,582 13,418 Howard St. Enhancement (Outpost) - 1,400 (1,400) Masin Park 150,000 - 150,000 Beck Park Restoration - 34,705 (34,705) Handyman Assistance - 10,104 (10,104) Hill Arboretum Apts. - Over the Rainbow 85,000 85,000 - Graffiti Removal Program 28,000 27,192 808 Total Neighborhood Revitalization 963,500 755,057 208,443 Continued Year ended February 29, 2004 - 113 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) - Continued Original and Final Budget Actual Variance Public Services Adopt a Fancy Can 5,000$ 8,670$ (3,670)$ Senior Crime Prevention 23,000 27,616 (4,616) HACA Education & Training 23,000 17,244 5,756 Evanston Community Defender 62,000 62,000 - Evanston Legal Services CCLAF 10,000 10,000 - Youth Job Center of Evanston 80,000 80,000 - Summer Youth 55,000 55,000 - Shorefront Mag 5,000 5,000 - YWCA Shelter Project 35,453 35,453 - Foster Reading Center 5,000 5,000 - Center for Public Ministry - Family Shelter Program 16,000 16,000 - North Shore Senior Center 27,000 27,000 - Interfaith Housing Program 17,500 17,500 - Metropolitan Family Service 6,480 6,480 - Total Public Services 370,433 372,963 (2,530) Total Expenditures 2,622,261$ 2,340,995$ 281,266$ Concluded Year ended February 29, 2004 - 114 - 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 - (12,430) (12,430) Interest - 88 88 Total Revenues 255,000 242,658 (12,342) Expenditures Housing and economic development 268,000 245,000 23,000 Total Expenditures 268,000 245,000 23,000 (Deficiency) of Revenues (under) Expenditures (13,000)$ (2,342) 10,658$ Fund Balance Beginning of year 202,805 End of yea 200,463$ Year ended February 29, 2004 - 115 - 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 282,000$ 287,638$ 5,638$ Interest income 6,000 3,400 (2,600) Replacement tax 45,000 34,453 (10,547) Miscellaneous - 2,090 2,090 Total Revenues 333,000 327,581 (5,419) Expenditures General management and support 168,523 163,984 4,539 Excess of Revenues over Expenditures 164,477 163,597 (880) Other Financing (Uses) Operating transfers (out) General Assistance Fund (160,000) (161,531) (1,531) Excess of Revenues over Expenditures and Other Financing Uses 4,477$ 2,066 (2,411)$ Fund Balance Beginning of year 336,477 End of yea 338,543$ Year ended February 29, 2004 - 116 - 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 752,000$ 734,960$ (17,040)$ Interest income 6,000 4,725 (1,275) Earnfare 2,500 9,767 7,267 SSI reimbursement 40,000 15,305 (24,695) Emergency Assistance reimbursement 140,000 80,000 (60,000) Total Revenues 940,500 844,757 (95,743) Expenditures General management and support 1,096,568 1,093,368 (3,200) Debt service Principal - 50,000 50,000 Total Expenditures 1,096,568 1,143,368 46,800 (Deficiency) of Revenues (under) Expenditures (156,068) (298,611) (142,543) Other Financing Sources Transfers in Town Fund 160,000 161,531 1,531 Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures 3,932$ (137,080) (141,012)$ Fund Balance Beginning of year 368,272 End of yea 231,192$ Year ended February 29, 2004 - 117 - THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS Debt Service Funds Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual (Budgetary Basis) Original Original Original and Final and Final and Final Budget Actual Budget Actual Budget Actual Revenues Taxes Property taxes Current year levy, net 8,097,845$ 7,609,413$ 436,000$ 438,183$ 5,802,523$ 5,833,543$ Prior year levy, net - 41,074 - (11,808) - 1,858 Sales tax - - - - 159,000 250,000 Investment income 60,000 106,593 200 157 50,000 63,095 Miscellaneous - 28,002 - - - - Total Revenues 8,157,845 7,785,082 436,200 426,532 6,011,523 6,148,496 Expenditures General management and support - 3,103 - 49,884 1,000 368,470 Health and human resources development - - - - Health and human resource development - - - - - - Debt Service Principal 6,520,000 6,661,270 225,000 167,718 280,000 280,000 Interest 1,958,099 3,113,745 213,184 196,153 369,500 370,539 Fiscal agent fees 100,000 201,980 500 - 30,000 31,721 Total Expenditures 8,578,099 9,980,098 438,684 413,755 680,500 1,050,730 Excess (Deficiency) of Revenues over (under) Expenditures (420,254) (2,195,016) (2,484) 12,777 5,331,023 5,097,766 Other Financing Sources (Uses) Operating transfers in (out) Bond Proceeds - 11,630,649 - - - - Escrow Funding - ######### - - - - General 132,840 175,000 - - (250,000) (250,000) Emergency Telephone System 212,000 213,400 - - - - Special Assessment Capital Projects 280,000 280,000 - - - - Water Fund - 726,106 - - - (40,000) Washington National TIF DS - - - - (845,315) (800,000) Maple Avenue Garage - - - - (4,117,709) (2,900,000) Washington National Cap. Proj. - - - - - - Capital Improvement - 293,488 - 4,409 - - Downtown TIF DS - - - - - - 624,840 1,789,813 - 4,409 (5,213,024) (3,990,000) Excess (Deficiency) of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 204,586$ (405,203) (2,484)$ 17,186 117,999$ 1,107,766 Fund Balances Beginning of year 1,284,912 42,951 6,785,494 End of yea 879,709$ 60,137$ 7,893,260$ Year ended February 29, 2004 Obligation Deb Genera Specia Service Distric No. 5 Increment Distric Central Business Tax - 118 - Original Original Original Original and Final and Final and Final and Final Budget Actual Budget Actual Budget Actual Budget Actual 566,318$ 265,136$ 1,107,672$ 1,168,809$ 885,339$ 976,283$ 16,895,697$ 16,291,367$ - 8,483 - - - - - 39,607 - - - - 75,000 75,000 234,000 325,000 10,000 5,780 50,000 34,596 10,000 11,311 180,200 221,532 - - - - - - - 28,002 576,318 279,399 1,157,672 1,203,405 970,339 1,062,594 17,309,897 16,905,508 - - - - 41,916 1,210 42,916 422,667 - - - - - - - - 600,000 600,000 - - - - 600,000 600,000 195,000 195,000 460,000 1,755,000 130,000 130,000 7,810,000 9,188,988 72,150 72,150 410,918 307,620 1,947,565 231,185 4,971,416 4,291,392 - - - - 74,725 129,661 205,225 363,362 867,150 867,150 870,918 2,062,620 2,194,206 492,056 13,629,557 14,866,409 (290,832) (587,751) 286,754 (859,215) (1,223,867) 570,538 3,680,340 2,039,099 - 1,190,000 - - - - - 12,820,649 - (1,190,000) - - - - - (12,718,830) (20,000) (20,000) (10,000) (100,000) (75,000) (130,000) (222,160) (325,000) - - - - - - 212,000 213,400 - - - - - - 280,000 280,000 - (10,000) - (10,000) - (40,000) - 626,106 - - - - - - (845,315) (800,000) - - - - - - (4,117,709) (2,900,000) - - - - - 77,897 - 77,897 - - - - - - - 297,897 - - - - 845,315 800,000 845,315 800,000 (20,000) (30,000) (10,000) (110,000) 770,315 707,897 (3,847,869) (1,627,881) (310,832)$ (617,751) 276,754$ (969,215) (453,552)$ 1,278,435 (167,529)$ 411,218 590,592 1,808,242 1,939,161 12,451,352 (27,159)$ 839,027$ 3,217,596$ 12,862,570$ Washington TotalsIncrement Distric Southwest Tax Howard Hartrey Tax Increment Distric Increment Distric National Tax - 119 - 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 21,475$ -$ -$ -$ 21,475$ Receivables Accounts - billed 923,290 - - - 923,290 Accounts - unbilled 905,904 - - - 905,904 Due from other funds - - - - - Other receivables 1,360 - - - 1,360 Intrafund receivable 352,817 (86,783) - (266,034) - Inventory 461,384 - - - 461,384 Total Current Assets 2,666,230 (86,783) - (266,034) 2,313,413 Noncurrent Assets Restricted cash and equivalents 335,403 1,688,017 2,934,733 6,711,042 11,669,195 Total Restricted Assets 335,403 1,688,017 2,934,733 6,711,042 11,669,195 Capital Assets Land 555,415 - - - 555,415 Construction in progress 24,767 - - 523,512 548,279 Capital assets being depreciated 52,715,922 - - - 52,715,922 Less accumulated depreciation (11,740,417) - - - (11,740,417) Total Capital Assets 41,555,687 - - 523,512 42,079,199 Total Assets 44,557,320$ 1,601,234$ 2,934,733$ 6,968,520$ 56,061,807$ - - February 29, 2004 Restricted Accounts Assets Operation and Bond Depreciation Maintenance and Bond Improvement Account Interest Reserve and Extension Totals Current Liabilities (Payable from Current Assets) Vouchers payable 219,802$ -$ -$ 56,734$ 276,536$ Accrued payroll 74,133 - - - 74,133 Due to other funds 133,956 - - - 133,956 Compensated absences payable 318,011 - - - 318,011 Total Current Liabilities 745,902 - - 56,734 802,636 Current Liabilities (Payable from Restricted Assets) Vouchers payable - - - 121,183 121,183 Interest payable - 34,429 - - 34,429 Revenue bonds payable - 134,167 - - 134,167 Total Restricted Liabilities - 168,596 - 121,183 289,779 Long-Term Liabilities Revenue bonds payable 5,245,833 - - - 5,245,833 Unamortized bond discount on bonds payable 13,009 - - - 13,009 Total Long-Term Liabilities 5,258,842 - - - 5,258,842 Total Liabilities 6,004,744 168,596 - 177,917 6,351,257 et Assets (Deficit) Restricted for debt service - 1,432,638 2,934,733 6,790,603 11,157,974 Unrestricted 38,552,576 - - - 38,552,576 Total Net Assets (Deficit) 38,552,576 1,432,638 2,934,733 6,790,603 49,710,550 Total Liabilities and Net Assets 44,557,320$ 1,601,234$ 2,934,733$ 6,968,520$ 56,061,807$ Liabilities and Fund Equity - 121 - Restricted Accounts 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 1,041,400$ 145,800$ 3,192,400$ 4,379,600$ Investment earnings 9,323 23,562 33,246 66,131 Total Increases 1,050,723 169,362 3,225,646 4,445,731 Decreases Bond principal 805,000 - - 805,000 Bond interest 231,023 - - 231,023 Purchase of capital assets - - 1,254,730 1,254,730 Payment of expense 618 - 514,114 514,732 Intrafund transfers to operation and maintenance - 145,800 - 145,800 Total Decreases 1,036,641 145,800 1,768,844 2,951,285 Net Increase 14,082 23,562 1,456,802 1,494,446 Net Assets Beginning of year 1,418,556 2,911,171 5,333,801 9,663,528 End of yea 1,432,638$ 2,934,733$ 6,790,603$ 11,157,974$ Year ended February 29, 2004 - 122 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Revenues, Expenses, and Changes in Unreserved Net Assets - Budget and Actual (With Comparative Totals for the Year Ended February 28, 2003) Prior Year Budget Actual Actual Operating Revenues Charges for services 13,070,200$ 12,992,143$ 13,156,708$ Miscellaneous 207,700 486,236 338,243 Total Operating Revenues 13,277,900 13,478,379 13,494,951 Operating Expenses Excluding Depreciation Administration 607,600 765,262 686,341 Operations Pumping 1,826,000 1,699,664 1,681,641 Filtration 1,903,800 1,763,407 1,552,318 Meter maintenance 277,900 279,882 276,162 Distribution 1,123,500 1,098,151 1,102,688 Other 774,400 935,192 889,017 Total Operating Expenses Excluding Depreciation 6,513,200 6,541,558 6,188,167 Operating Income Before Depreciation 6,764,700 6,936,821 7,306,784 Depreciation - 1,287,466 1,401,012 Operating Income 6,764,700 5,649,355 5,905,772 Nonoperating Revenues (Expenses) Investment income 65,000 39,005 72,404 Interest expense - (231,023) (317,538) Bond expenses and amortization of discount - (5,968) (137,174) Net book value of capital assets disposed - (6,205) (1,349) Total Nonoperating Revenues (Expenses) 65,000 (204,191) (383,657) Income Before Transfers 6,829,700 5,445,164 5,522,115 Transfers In (Out) Transfer In - 618,336 - Transfer Out (2,531,800) (3,265,106) (3,915,290) (2,531,800) (2,646,770) (3,915,290) et Income 4,297,900$ 2,798,394 1,606,825 Other Changes in Unreserved Net Assets lntrafund transfers in (out) - net assets - reserved - restricted accounts (1,943,047) (1,744,546) Increase in Unreserved Net Assets 855,347 (137,721) Unreserved Net Assets Beginning of yea 37,697,229 37,834,950 End of yea 38,552,576$ 37,697,229$ Year ended February 29, 2004 - 123 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual (With Comparative Totals for the Year Ended February 28, 2003) Prior Year Budget Actual Actual Charges for Services, Net Water Sales Evanston 6,588,000$ 6,665,158$ 6,711,005$ Skokie 3,121,200 2,959,732 3,011,018 Northwest Water Commission 3,361,000 3,367,253 3,434,685 Total Charges for Services 13,070,200 12,992,143 13,156,708 Miscellaneous Fees and outside work 45,000 73,740 79,055 Fees, merchandise and other 162,700 412,496 259,188 Total Miscellaneous 207,700 486,236 338,243 Total Operating Revenues 13,277,900$ 13,478,379$ 13,494,951$ Year ended February 29, 2004 - 124 - INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Fleet Services Fund - to account for the costs of operating the municipal service center maintenance facility for transportation equipment used by other City departments. Such costs are billed to the user departments at actual cost. Actual costs include depreciation on the transportation equipment. Insurance Fund - to account for the costs of administering 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 267,793$ 356,168$ 623,961$ Investment 500,000 3,027,942 3,527,942 Receivables - other 18,259 - 18,259 Due from other funds - 2,090,760 2,090,760 Inventory 290,181 - 290,181 Total Unrestricted Current Assets 1,076,233 5,474,870 6,551,103 Capital Assets Cost 17,390,095 - 17,390,095 Accumulated depreciation (11,517,322) - (11,517,322) Total Capital Assets 5,872,773 - 5,872,773 Total Assets 6,949,006 5,474,870 12,423,876 Liabilities and Fund Equity Current Liabilities Vouchers payable 93,565 73,550 167,115 Accrued payroll 19,140 - 19,140 Interest payable 17,721 - 17,721 Compensated absences payable 99,531 - 99,531 General obligation bonds payable 915,000 - 915,000 Claims payable - 25,303,735 25,303,735 Due to other government - 83,030 83,030 Due to other funds 44,567 1,072 45,639 Total Current Liabilities 1,189,524 25,461,387 26,650,911 Long-Term Liabilities General obligation bonds payable 450,000 - 450,000 Unamortized bond expenses and discount (1,186) - (1,186) Claims payable - 2,861,917 2,861,917 Total Long-Term Liabilities 448,814 2,861,917 3,310,731 Total Liabilities 1,638,338 28,323,304 29,961,642 Net Assets (Deficit) Invested in capital assets, net of related debt 4,508,959 - 4,508,959 Unrestricted 801,709 (22,848,434) (22,046,725) Total net assets (deficit) 5,310,668$ (22,848,434)$ (17,537,766)$ February 29, 2004 Assets - 125 - 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 4,047,098$ 1,900,000$ 5,947,098$ Sewer Fund 235,800 - 235,800 Water Fund 301,900 - 301,900 Motor Vehicle Parking System Fund 99,200 - 99,200 Miscellaneous 360,217 721,110 1,081,327 Total Operating Revenues 5,044,215 2,621,110 7,665,325 Operating Expenses General support 425,394 - 425,394 Major maintenance 1,949,653 - 1,949,653 Vehicle body maintenance 251,720 - 251,720 General liability claims - 6,602,462 6,602,462 Workers compensation claims - 1,211,543 1,211,543 Other 116,701 - 116,701 Total Operating Expenses 2,743,468 7,814,005 10,557,473 Operating Income (Loss) Before Depreciation 2,300,747 (5,192,895) (2,892,148) Depreciation 1,572,777 - 1,572,777 Operating Income (Loss) 727,970 (5,192,895) (4,464,925) Nonoperating Revenues (Expenses) Investment income 455 19,992 20,447 Other nonoperating revenues 45,532 - 45,532 Interest expense (114,901) - (114,901) Amortization of bond discount (2,310) - (2,310) Sale of fixed assets 136,335 - 136,335 Net book value of fixed assets disposed (8,579) - (8,579) Total Nonoperating Revenues (Expenses) 56,532 19,992 76,524 Income (Loss) before Operating Transfers 784,502 (5,172,903) (4,388,401) Transfers In (Out) General Fund - 2,000,000 2,000,000 Change in Net Assets 784,502 (3,172,903) (2,388,401) Total Net Assets (Deficit) - Beginning of Year 4,526,166 (19,675,531) (15,149,365) Total Net Assets (Deficit)- End of Yea 5,310,668$ (22,848,434)$ (17,537,766)$ Year ended February 29, 2004 - 126 - 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 5,044,817$ 2,621,110$ 7,665,927$ Receipts from interfund services provided 64,219 (2,090,760) (2,026,541) Payments to suppliers (2,339,316) (1,793,760) (4,133,076) Payments to employees (390,430) (1,211,543) (1,601,973) Payments for interfund services provided 44,567 916 45,483 Net cash provided by operating activities 2,423,857 (2,474,037) (50,180) Cash Flows from Noncapital Financing Activities Operating transfers (out) General Fund - 2,000,000 2,000,000 Net Cash Provided by (Used for) Noncapital Financing Activities - 2,000,000 2,000,000 Cash Flows from Capital and Related Financing Activities Sale of fixed assets 136,335 - 136,335 Acquisition and construction of capital assets (861,943) - (861,943) Principal paid on general obligation bonds (1,130,000) - (1,130,000) Interest paid on general obligation bonds (129,572) - (129,572) Net Cash (Used for) Capital and Related Financing Activities (1,985,180) - (1,985,180) Cash Flows from Investing Activities Proceeds from sale/maturities of investment securities (500,000) 780,286 280,286 Interest income 455 19,992 20,447 Net Increase in Cash and Equivalents (60,868) 326,241 265,373 Cash and Equivalents Beginning of year 328,661 29,927 358,588 End of yea 267,793$ 356,168$ 623,961$ Continued Year ended February 29, 2004 - 127 - CITY OF EVANSTON, ILLINOIS Combining Schedule of Cash Flows - Continued Internal Service Funds Fleet Services Insurance Totals Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities Operating Income (loss) 727,970$ (5,192,895)$ (4,464,925)$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities Depreciation 1,572,777 - 1,572,777 Changes in assets and liabilities Other receivables 602 - 602 lnterfund receivable 64,219 (2,090,760) (2,026,541) Inventory (20,629) - (20,629) Compensated absences 26,172 - 26,172 Accrued payroll 8,792 - 8,792 lnterfund payable 44,567 916 45,483 Vouchers payable (613) 71,151 70,538 Claims payable - 5,225,941 5,225,941 Due to other governments - (488,390) (488,390) et Cash Provided by Operating Activities 2,423,857$ (2,474,037)$ (50,180)$ Year ended February 29, 2004 - 128 - THIS PAGE INTENTIONALLY LEFT BLANK CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS CITY OF EVANSTON, ILLINOIS 2004 2003 Governmental funds capital assets: Land $ 6,556,620 $ 6,556,620 Right of way 18,606,141 18,606,141 Buildings and improvements 76,477,157 69,466,531 Office equipment and furniture 5,696,745 5,696,745 Machinery and equipment 699,003 626,152 Library collections 9,354,086 8,918,031 Capital leases 1,190,567 1,190,567 Infrastructure 73,165,617 69,624,901 Construction in progress 3,563,951 5,450,621 Total governmental funds capital assets $ 195,309,887 $ 186,136,309 Investments in governmental funds capital assets by source: Capital Project Funds $ 165,738,247 $ 157,073,575 General and Special Revenue Funds 28,958,116 28,449,210 Gifts / Donation 613,524 613,524 Total governmental funds capital assets $ 195,309,887 $ 186,136,309 - 129 - Capital Assets Used in the Operation of Governmental Funds Comparative Schedules by Source Year Ended February 29, 2004 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 $17 390 095 at Februar 29 2004 and $16 982 512 at Februar 28 2003. CITY OF EVANSTON, ILLINOI General management and support $ 5,194,320 $ 5,565,293 $ 4,449,504 $ 176,192 Public safety 99,900 12,870,960 1,182,246 260,079 Public works 951,020 20,054,066 - 46,884 Recreation and cultural opportunities 311,380 37,986,838 64,995 215,848 Total capital asset $ 6,556,620 $ 76,477,157 $ 5,696,745 $ 699,003 Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activit Year Ended February 29, 2004 Buildings and Office FUNCTION AND ACTIVITY Land improvements furniture 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 $17,390,095 at February 29, 2004 and $16,982,512 at February 28, 2003. - 130 - equipment and equipment Machinery and $ - $ 18,606,141 $ 706,974 $ - $ 3,563,951 $ 38,262,375 - - 70,719 - - 14,483,904 - - - 69,786,861 - 90,838,831 9,354,086 - 412,874 3,378,756 - 51,724,777 $ 9,354,086 $ 18,606,141 $ 1,190,567 $ 73,165,617 $ 3,563,951 $ 195,309,887 in progress Capitalized leases Right of Construction Collections Library - 131 - Infrastructure TotalWay CITY OF EVANSTON, ILLINOIS General management and support $ 36,128,612 $ 2,133,763 $ - $ 38,262,375 Public safety 11,844,420 5,950,405 (3,310,921) 14,483,904 Public works 88,193,069 2,645,762 - 90,838,831 Recreation and cultural opportunities 49,970,208 2,391,229 (636,660) 51,724,777 Total capital assets $ 186,136,309 $ 13,121,159 $ (3,947,581) $ 195,309,887 Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activit Year Ended February 29, 2004 - 132 - Capital assets Additions February 29, 2004 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 $17,390,095 at Februar 29 2004 and $16 982 512 at Februar 28 2003. FUNCTION AND ACTIVITY March 1, 2003 Deletions Capital assets STATISTICAL SECTION (UNAUDITED) CITY OF EVANSTON, ILLINOIS Government-wide Expenses by Function Year ended February 29, 2004 2003 2004 Government Activities General management and support 14,273,641$ 15,791,355$ Public safety 33,420,019 39,237,180 Public works 13,186,710 13,065,137 Health and human resource development 5,041,428 5,370,262 Recreation and cultural opportunities 16,247,049 17,129,356 Housing and economic development 5,817,651 5,973,494 Interest 4,540,304 4,899,622 Total governmental activities 92,526,802 101,466,406 Business-type Activities Water 11,407,511 8,992,102 Motor vehicle parking system 3,701,739 3,468,096 Sewer 8,543,719 8,964,469 Maple avenue garage fund 2,678,894 3,028,429 Total business-type activities 26,331,863 24,453,096 Total expenses 118,858,665$ 125,919,502$ Source: City's Comprehensive Annual Financial Reports. Note: The City implemented GASB-34 for the fiscal year ended February 28, 2003. - 133 - CITY OF EVANSTON, ILLINOIS Government-wide Revenues Year ended February 29, 2004 2003 2004 Program revenues Charges for services 53,636,822$ 56,731,361$ Operating grants and contributions 3,006,468 3,479,547 Capital grants and contributions 1,962,713 1,458,824 General revenues Property and replacement taxes 71,718,463 75,929,482 Sales tax 217,000 345,000 Motor fuel tax 2,116,330 - * Special assessments 208,002 - * Gain on sale of property 174,825 93,223 Miscellaneous 2,131,077 2,003,696 Investment income 1,698,323 2,054,006 Total revenues 136,870,023$ 142,095,139$ * Included in program revenues in 2004 Source: City's Comprehensive Annual Financial Reports. Note: The City implemented GASB-34 for the fiscal year ended February 28, 2003. - 134 - THIS PAGE INTENTIONALLY LEFT BLANK CITY OF EVANSTON, ILLINOIS General Governmental Revenues - By Source (City Funds) Last Ten Fiscal Years 1995 1996 1997 1998 Taxes 41,741,004$ 44,435,251$ 47,377,295$ 49,253,561$ Licenses and permits 3,540,071 3,318,511 3,935,179 4,394,035 Intergovernmental 4,187,718 4,960,463 4,420,780 5,773,857 Charges for services 4,173,777 4,631,830 4,012,343 4,030,003 Fines and forfeits 1,783,142 1,689,984 1,902,396 2,763,919 Investment income 614,007 709,267 803,826 930,876 Miscellaneous 3,036,585 3,004,735 3,305,452 3,642,998 59,076,304$ 62,750,041$ 65,757,271$ 70,789,249$ Note: Includes General, Special Revenue and Debt Service Funds - 135 - 1999 2000 2001 2002 2003 2004 51,219,538$ 56,526,013$ 61,553,222$ 62,319,808$ 52,545,639$ 56,923,353$ 4,186,623 5,333,590 6,436,357 7,404,986 6,459,186 6,699,058 5,593,385 6,250,303 5,448,577 5,859,079 18,291,511 18,004,581 4,997,650 4,859,680 5,491,544 5,514,980 6,261,930 5,996,802 2,830,747 2,624,768 2,782,303 3,241,930 3,742,055 4,162,610 832,176 1,178,473 1,909,097 1,442,953 690,001 953,816 3,586,765 4,103,998 4,127,182 3,631,267 5,995,219 4,714,224 73,246,884$ 80,876,825$ 87,748,282$ 89,415,004$ 93,985,541$ 97,454,444$ - 136 - CITY OF EVANSTON, ILLINOIS General Governmental Expenditures - By Function/Program (City Funds) Last Ten Fiscal Years 1995 1996 1997 1998 General management and support services 6,914,666$ 6,221,091$ 6,009,344$ 6,200,320$ Public Safety 18,507,221 19,190,402 19,493,788 21,239,535 Public Works 8,468,374 9,196,628 9,771,057 9,615,973 Health and human resource development 3,298,291 3,364,856 3,632,846 3,991,174 Recreation and cultural opportunities 8,618,848 9,176,867 9,624,646 9,939,803 Housing and economic development 4,369,329 4,911,069 4,534,206 6,320,413 Pension 3,625,581 3,748,991 3,865,286 3,811,861 Debt service 13,817,122 12,605,427 18,486,089 15,791,760 67,619,432$ 68,415,331$ 75,417,262$ 76,910,839$ Note: Includes General, Special Revenue and Debt Service Funds - 137 - 1999 2000 2001 2002 2003 2004 7,212,004$ 8,260,083$ 8,909,240$ 11,965,898$ 11,293,648$ 11,815,342$ 22,181,724 22,504,948 23,927,733 25,454,153 26,875,820 28,008,431 10,434,066 12,677,399 12,211,887 11,655,007 10,847,474 11,118,899 4,211,702 4,341,946 4,743,728 4,620,954 4,839,565 5,272,090 10,590,037 11,729,639 12,107,322 13,028,036 13,422,959 14,251,886 5,336,215 7,013,119 5,619,661 6,292,771 5,661,898 5,882,117 3,938,842 3,858,622 3,926,955 4,090,630 4,209,396 2,687,984 12,187,953 10,717,903 11,095,141 10,639,365 11,224,087 14,548,084 76,092,543$ 81,103,659$ 82,541,667$ 87,746,814$ 88,374,847$ 93,584,833$ - 138 - CITY OF EVANSTON, ILLINOIS Schedule of Insurance in Force $10,000,000 coverage in excess of $2,000,000 per occurrence (first $2,000,000 is City's portion) 004593302 3/1/04 - 3/1/05 Excess Liability Crime Policy Theft of cash in excess of $25,000 deductible, to limit of $2,000,000 - 139 - Illinois National Insurance Co. 76031064 3/01/04 - 3/1/05 National Union Fire Ins. Co. (AIG) March 1, 2004 Western World Insurance NPP720300 3/01/04 - 3/1/05 9/26/03 - 9/26/04 Policy Policy 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 Safety National Casualty Corp. SP3985IL 3/01/04 - 2/28/05 Excess Workers' Com ensation Specific excess coverage in exces of $300,000 er occurrence Fireman's Fund Insurance Co. MX1-97902812 Property - Noyes, Levy Center and Fleetwood/Jourdain Theaters Name of Company FM Global FB920 3/01/04 - 3/01/05 All - Risk Property (includes business interruption, loss of rents, and fine arts) Number Dates Actual cash value per Statement of Values each loss/each location in excess of $75,000 deductible Type of DetailsCoverage CITY OF EVANSTON, ILLINOIS Property Tax Rates Last Ten Levy Years Tax Levy Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 General Corporate 1.4880 1.3672 1.1649 1.1161 1.0918 0.9801 1.0231 1.0872 0.8646 0.8554 Debt Service 0.5084 0.5740 0.5308 0.5417 0.5946 0.5443 0.5574 0.5743 0.4467 0.4404 1.9964 1.9412 1.6957 1.6578 1.6864 1.5244 1.5805 1.6615 1.3113 1.2958 Police Pension 0.1671 0.2209 0.2111 0.2154 0.2138 0.2062 0.2021 0.2088 0.1819 0.1812 Firefighters' Pension 0.1312 0.1842 0.1774 0.1855 0.1681 0.1566 0.1505 0.1626 0.1348 0.1321 Total All Funds 2.2947 2.3463 2.0842 2.0587 2.0683 1.8872 1.9331 2.0329 1.6280 1.6091 Actual Rate Extended 2.295 2.347 2.085 2.059 2.069 1.888 1.934 2.033 1.628 1.610 *2003 property tax rates were not available at publication of this report. Fund - 140 - 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 23,458,468 130,842 23,589,310 99.29%168,825 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 5,085,209 - 5,085,209 17.06%24,728,578 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. 0.97%97.34% 29,813,787 17.06% 82.94% 1.49%97.60%2002 26,305,327 23,758,135 23,757,143 23,757,144 23,757,032 1996 1997 0.71% 0.44% 0.34% 97.76% 0.50% 98.74% 99.45% 98.46% 97.80% -0.05% Levy 1999 Total Tax LevyYear 25,137,352 23,757,143 1998 1995 1994 of Levy Taxes as Collected Percent of Current Levy Outstanding (1) Tax (2) and Delinquent Percent 2003 - 141 - 2000 2001 26,217,646 96.58% 1.82% 96.53% 1.79% 27,957,126 CITY OF EVANSTON, ILLINOIS Analysis of City Government Tax Levies Last Ten Levy Years Tax Levy Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Fund General Corporate 13,843,634$ 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$ Debt Service 5,812,463 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 19,656,097 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 Police Pension 2,236,354 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 Firefighters Pension 1,865,684 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 23,758,135$ 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$ 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. - 142 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 City of Evanston 2.295 2.347 2.085 2.059 2.069 1.888 1.934 2.033 1.628 1.610 Consolidated Elections - - - - 0.027 - 0.023 - 0.032 - Cook County 0.993 0.993 1.023 0.989 0.919 0.911 0.854 0.824 0.746 0.690 Cook County Forest Preserve District 0.072 0.073 0.072 0.074 0.074 0.072 0.070 0.069 0.067 0.061 Suburban T.B. Sanitarium 0.008 0.008 0.008 0.008 0.008 0.008 0.008 0.008 0.007 0.006 Metropolitan Water Reclamation District 0.471 0.495 0.495 0.492 0.451 0.444 0.419 0.415 0.401 0.371 North Shore Mosquito Abatement District 0.011 0.011 0.011 0.011 0.011 0.011 0.011 0.011 0.010 0.009 Evanston Township 0.085 0.088 0.077 0.076 0.077 0.072 0.072 0.077 0.064 0.062 Community College 535 0.248 0.255 0.233 0.206 0.216 0.205 0.203 0.213 0.186 0.179 School District 202 3.000 3.202 2.946 2.992 3.107 2.905 2.865 2.977 2.469 2.349 School District 6 4.148 4.678 4.245 4.209 4.356 4.126 4.073 4.232 3.516 3.343 Total tax rate for property not in park district or special service distric 11.331 12.150 11.195 11.116 11.315 10.642 10.532 10.859 9.126 8.680 Percent of total tax rate levied by City of Evansto 20.0% 19.3% 18.6% 18.5% 18.3% 17.7% 18.4% 18.7% 17.8% 18.5% *2003 property tax rates were not available at publication of this report. Government Unit - 143 - CITY OF EVANSTON, ILLINOIS Equalized Assessed Valuation of Taxable Property Last Ten Levy Years Real Railroad Total Equalization Property Property Assessment Factor 1,035,262,113 95,997 1,035,358,110 2.1407 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 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 2003 were not available at publication of this repo 2002 - 144 - 1994 1995 1996 1998 Tax Levy Year 1993 1997 2000 1999 2001 CITY OF EVANSTON, ILLINOIS Special Assessment Billings and Collections Last Ten Levy Years Total Total Collections Outstanding Including Current, Total Prepayments and Delinquent, Current Delinquent and Future Installments Collections Assessments 114,564 102,859 604,763 134,181 114,550 377,696 151,737 188,358 357,058 195,698 227,311 582,145 221,200 224,406 755,760 202,662 275,867 742,605 208,794 214,344 765,015 224,764 258,313 737,273 220,564 208,002 684,523 207,711 216,740 1,014,798 2002 - 145 - 2003 2004 2001 2000 1998 1997 1995 Levy 1996 Year 1999 Tax 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% Notes: Equalized assessed values do not include tax increment financing district incremental equalized assessed values. 751.69 2003 74,239 194,086,731 854.33 2004 74,239 191,073,334 943.38 (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. - 146 - 827.82 74,239 156,955,729 2002 817.40 74,239 147,832,588 2000 73,233 128,981,760 1998 73,233 2001 128,908,875 130,976,7521999 73,233 1997 73,233 73,233 1996 Debt Obligation Net General Obligation Debt (2) Bonded Bonded Per Capita Gross Population (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. 857.33 802.56 123,574,951 746.71 775.61 120,403,037 (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 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) 70,035,897$ 100.000% 70,035,897$ Other bonded debt County of Cook 2,590,255,000 (3) 1.653% 42,811,074 Metropolitan Water Reclamation District 1,344,529,104 (4) 1.689% 22,711,786 High School District 202 13,900,978 (4) 89.919% 12,499,565 School District 65 50,965,000 89.919% 45,827,014 Skokie Park District 8,825,000 (5) 0.676% 59,675 Total Overlapping Debt 4,008,475,082 123,909,115 Total Direct and Overlapping Debt 4,078,510,979$ 193,945,012$ Notes: City of Evanston's share based upon 2001 real property valuations. (2) Excludes General Obligation Notes issued in lieu of tax anticipation warrants and notes issued to provide interim construction financing. Excludes general obligation bonds reported in the enterprise and internal service funds, general obligation notes payable under line of credit with Northwestern University, and Special Service District No. 5 unlimited ad valorem tax bonds. (5) February 29, 2004 - 147 - (1) Excludes $28,884,163 General Obligation bonds issued pursuant to Section 15 of the Local Government Debt Reform Act ("Alternate Bonds"). (3) (4) Includes Cook County Forest Preserve District debt. CITY OF EVANSTON, ILLINOIS Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures (City) Last Ten Fiscal Years (3) Ratio of (1) (2) Total Debt Service Interest Total General to General and Paying Debt Governmental Governmental Principal Agent Fees Service Expenditures Expenditures 4,929,243 (3) 3,860,860 (1) 8,790,103 (2) 67,619,432 13.00% 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% 9,385,000 4,943,084 14,328,084 93,584,833 15.31% 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. 2002 2003 2004 2000 2001 1995 1996 1997 1998 1999 Fiscal Year Ended - 148 - (3) (2) (1) 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 11,665,892 4,520,961 7,144,931 1,485,834 974,457 2,460,291 2.90x 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 Notes: Excludes depreciation and amortization. Excludes interest paid by escrow agent.(2) - 149 - Last Ten Fiscal Years 1998 1999 (1) 2001 2002 1995 2003 2004 2000 Fiscal Year Ended Debt Service Requirements 1996 1997 CITY OF EVANSTON, ILLINOIS Water Fund Water Revenues by Area Northwest Water Evanston Skokie Commission 5,152,353 2,817,402 2,941,420 6,911,950 2,907,178 3,181,411 6,774,380 2,908,102 3,367,773 6,811,100 2,918,766 3,283,048 6,606,091 2,859,685 3,247,291 6,711,004 3,011,018 3,434,685 6,665,158 2,959,732 3,367,253 Last Seven Fiscal Years Fiscal Schedule of Operating Revenues Year Ended 1998 1999 2000 2001 2002 2003 2004 - 150 - CITY OF EVANSTON, ILLINOIS Water Fund Water Pumpage by Area Northwest Water Evanston Skokie Commission 3,356.12 3,886.07 9,037.36 3,446.67 3,931.28 9,532.74 3,717.30 3,891.25 9,830.50 3,441.92 3,793.56 9,392.41 3,443.72 3,643.84 9,119.18 3,428.94 3,761.22 9,448.57 3,448.09 3,624.90 9,079.86 Pumpage to Distribution System (Millions of Gallons) - 151 - Last Seven Fiscal Years Fiscal Year Ended 2004 1998 1999 2000 2001 2002 2003 CITY OF EVANSTON, ILLINOIS Water Fund Ten Largest Water Customers Cubic Feet of Rank Name Water Used 1 Northwestern University 41,514,200 2 Evanston Hospital 18,832,900 3 St. Francis Hospital 11,193,600 4 Presbyterian Homes 5,990,400 5 District 202, ETHS 3,897,100 6 Orrington Hotel 3,195,600 7 North Shore Hotel 2,785,500 8 Albany House 2,494,600 9 District 65 Schools 2,066,800 10 Wagner Health Center (Mather Pavillion) 1,669,300 Ten Largest Water Customers (2003) - 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 $ 26,559 31.9 13.6 9,478 4.30% 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% * 2004 statistic were not available at publication time of this report Data Sources - 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) (1) (2) (3) (5) 2001 2002 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 1996 U.S. Department of Commerce, Bureau of the Census, based on adjustments through the Chicago Consumer 1997 2004 Last Ten Fiscal Years 2000 Fiscal Year Ended 1995 1998 1999 CITY OF EVANSTON, ILLINOIS Construction Value and Property Value (1) (2) Construction Property Value Value 84,208,856 3,038,000,000 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 Data Sources 1999 1996 1995 - 155 - 2000 (2) 2001 2002 (1) 2003 2004 Last Ten Fiscal Years City of Evanston building department Estimated actual value. 1998 Year Fiscal Ended 1997 CITY OF EVANSTON, ILLINOIS Principal Taxpayers (1) Percentage Equalized of Total Assessed Assessed Type of Business Valuation Valuation Bank One/Office Building 20,504,101$ 1.20% Office building - 18 story 17,204,801 1.01% Chicago Ave. Condo Building 14,623,909 0.85% Chicago Avenue Condo Building 12,760,189 0.75% Shopping Center 11,162,304 0.65% Church Street Plaza Shopping Center 10,995,024 0.64% 1800 Sherman/Office Building 10,819,781 0.63% Greenfield Acquisitions Real Estate 10,270,624 0.60% Hotel 10,268,980 0.60% Grocery & Drug Stores 8,700,722 0.51% 127,310,435$ 7.33% Note: Evanston Hotel Total Ten Largest Taxpayers - 156 - (1)January 1, 2001 - Levy year 2001 for 2002 tax billing purposes. Levy year 2001 equalized assessed valuation, including tax increment financing district incremental values, was $1,710,663,113. Albertson's (Jewel & Osco) Church & Chicago LTD. Partnership Lynn Minnici Evanston NW Healthcare Ten Largest Taxpayers Taxpayers Rotary International Golub & Company Evanston Plaza Freed CITY OF EVANSTON, ILLINOIS Miscellanous Statistics February 29, 2004 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 $36,296 Annual Gross Retail Sales 2001/2002 $751,741,503 Municipal Services and Facilities Number of Full-Time Employees 831 Miles of Streets 137 Miles of Alleys 70 Miles of Sewers 150 Number of Street Lights 5,448 Value of Construction Authorized in 2003/2004 $124,772,892 Continued - 157 - CITY OF EVANSTON, ILLINOIS Miscellanous Statistics - Continued February 29, 2004 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 34 Number of Parking Enforcement Officers 9 Number of Other Employees 45 Library Services Number of Branch Libraries 2 Number of Books and Other Materials 514,248 Number of Registered Borrowers 47,367 Loan of Library Materials - 2003/2004 868,837 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 1,430 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 2,567 Municipal Water Utility Population Serviced Northwest Water Commission 221,643 Evanston 73,421 Skokie 63,126 Filtration Plant Rated Daily Capacity (gallons) 108,000,000 Rated Daily Pumping Capacity (gallons) 147,000,000 Average Daily Pumpage (gallons) 2002/2003 44,274,000 Maximum Daily Pumpage (gallons) 2002/2003 72,908,000 Miles of Water Mains 155.908 - 158 - THIS PAGE INTENTIONALLY LEFT BLANK TAX INCREMENT FINANCING DISTRICT REQUIREMENTS