HomeMy WebLinkAbout2017 Annual Comprehensive Financial Report City of Evanston, Illinois
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Comprehensive Annual Financial Report
For the Year Ended December 31, 2017
CITY OF EVANSTON, ILLINOIS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended
December 31, 2017
Prepared by the Finance Division of the City Manager’s Office
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Principal Officials ......................................................................................................... i
Organization Chart ........................................................................................................ ii
Certificate of Achievement for Excellence in Financial Reporting .............................. iii
Letter of Transmittal ..................................................................................................... iv-xi
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT .................................................................... 1-3
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
Management’s Discussion and Analysis .................................................................. MD&A 1-8
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ............................................................................... 4-5
Statement of Activities ................................................................................... 6-7
Fund Financial Statements
Governmental Funds
Balance Sheet ............................................................................................. 8-9
Reconciliation of Fund Balances of Governmental Funds to
the Governmental Activities in the Statement of Net Position ................ 10
Statement of Revenues, Expenditures, and
Changes in Fund Balances ....................................................................... 11
Reconciliation of Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities .................................................. 12
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)
Basic Financial Statements (Continued)
Fund Financial Statements (Continued)
Proprietary Funds
Statement of Net Position .......................................................................... 13-14
Statement of Revenues, Expenses, and
Changes in Fund Net Position ................................................................. 15
Statement of Cash Flows ........................................................................... 16-17
Fiduciary Funds
Statement of Fiduciary Net Position .......................................................... 18
Statement of Changes in Plan Net Position ............................................... 19
Notes to Financial Statements ............................................................................. 20-78
Required Supplementary Information
Schedule of Funding Progress and Employer Contributions
Other Postemployment Benefits ..................................................................... 79
Schedule of Employer Contributions
Illinois Municipal Retirement Fund ............................................................... 80
Police Pension Fund ....................................................................................... 81
Firefighters' Pension Fund .............................................................................. 82
Schedule of Changes in the Employer’s Net Pension Liability
and Related Ratios
Illinois Municipal Retirement Fund ................................................................ 83
Police Pension Fund ....................................................................................... 84
Firefighters’ Pension Fund ............................................................................. 85
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund .................................................................... 86
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)
Required Supplementary Information (Continued)
Schedule of Investment Returns
Police Pension Fund ....................................................................................... 87
Firefighters’ Pension Fund ............................................................................. 88
Notes to Required Supplementary Information ................................................... 89
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Schedule of Revenues - Budget and Actual - General Fund ............................... 90-93
Schedule of Expenditures - Budget and Actual - General Fund.......................... 94
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Obligation Debt Fund ....................................................................... 95
NONMAJOR GOVERNMENTAL FUNDS
Combining Balance Sheet ................................................................................... 96-99
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances .......................................................................... 100-103
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Motor Fuel Tax Fund ...................................................................................... 104
Economic Development Fund ........................................................................ 105
Emergency Telephone System Fund .............................................................. 106
Neighborhood Improvement Fund ................................................................. 107
Affordable Housing Fund ............................................................................... 108
HOME Fund ................................................................................................... 109
Community Development Block Grant Fund ................................................. 110
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
Community Development Block Grant Fund ................................................. 111
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Community Development Loan Fund ............................................................ 112
Neighborhood Stabilization Program 2 Fund ................................................. 113
Special Service District No. 4 Fund ............................................................... 114
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES (Continued)
NONMAJOR GOVERNMENTAL FUNDS (Continued)
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Good Neighbor Fund ...................................................................................... 115
General Assistance Fund ................................................................................ 116
Capital Improvements Fund ........................................................................... 117
Crown Capital Fund ....................................................................................... 118
Special Assessment Capital Projects Fund ..................................................... 119
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual - Debt Service Funds............. 120-121
ENTERPRISE FUNDS
Water Fund
Schedule of Revenues, Expenses, and Changes in Net Position -
Budget and Actual ........................................................................................ 122
Water Fund - Operation and Maintenance Account
Schedule of Operating Revenues - Budget and Actual................................... 123
INTERNAL SERVICE FUNDS
Combining Statement of Net Position ................................................................. 124
Combining Statement of Revenues, Expenses, and
Changes in Net Position .................................................................................... 125
Combining Statement of Cash Flows .................................................................. 126
COMPONENT UNIT - PUBLIC LIBRARY
All Governmental Funds
Combining Balance Sheet/Statement of Net Position .................................... 127-128
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances/Statement of Activities ...................................... 129-130
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES (Continued)
COMPONENT UNIT - PUBLIC LIBRARY (Continued)
Major Governmental Funds
Library Operating Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual .......................................................... 131
STATISTICAL SECTION
Net Position by Component .......................................................................................... 132
Changes in Net Position ................................................................................................ 133-134
Fund Balances, Governmental Funds ........................................................................... 135
Changes in Fund Balances, Governmental Funds......................................................... 136-137
Equalized Assessed Value and Actual Value of Taxable Property ............................... 138
Principal Property Taxpayers ........................................................................................ 139
Property Tax Levies and Collections ............................................................................ 140
Ratios of General Bonded Debt Outstanding ................................................................ 141
Ratios of Outstanding Debt by Type ............................................................................. 142
Direct and Overlapping Governmental Activities Debt ................................................ 143
Legal Debt Margin ........................................................................................................ 144
Pledged-Revenue Coverage .......................................................................................... 145
Demographic and Economic Statistics ......................................................................... 146
Principal Employers ...................................................................................................... 147
Full-Time Equivalent City Government Employees by Function................................. 148
Property Tax Rates per $100 - Direct and Overlapping Governments ......................... 149
Water Sold by Type of Customer (in 100 cubic feet) ................................................... 150
Water Sold by Major Customers ................................................................................... 151
Operating Indicators by Function/Program ................................................................... 152
Capital Assets Statistics by Function ............................................................................ 153
COMPLIANCE SECTION
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE
WITH STATE OF ILLINOIS PUBLIC ACT 85-1142 ............................................... 154
INTRODUCTORY SECTION
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CITY OF EVANSTON, ILLINOIS
Principal Officials
December 31, 2017
LEGISLATIVE
Stephen H. Hagerty, Mayor
Judy Fiske Alderman – 1st Ward
Peter Braithwaite Alderman – 2nd Ward
Melissa A. Wynne Alderman – 3rd Ward
Donald N. Wilson Alderman – 4th Ward
Robin Rue Simmons Alderman – 5th Ward
Thomas M. Suffredin Alderman – 6th Ward
Eleanor Revelle Alderman – 7th Ward
Ann Rainey Alderman – 8th Ward
Cicely L. Fleming Alderman – 9th Ward
Devon Reid, City Clerk
EXECUTIVE
Wally Bobkiewicz, City Manager
Martin Lyons, City Treasurer/Assistant City Manager (through January 5, 2018)
Hitesh Desai, CFO/Treasurer (since April 16, 2018)
ADMINISTRATIVE
Budget and Finance Manager Health and Human Services
Ashley King Director
Evonda Thomas-Smith
Police Chief City Attorney
Richard Eddington Grant Farrar
Administrative Services Director Library Director
Erika Storlie Karen Danczak Lyons
Community Development Parks, Recreation, & Community
Director Services Director
Johanna Leonard Lawrence Hemingway
Public Works Agency Director Fire Chief
Dave Stoneback Brian Scott
City of Evanston
Organizational Chart
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Residents
Mayor
City Council
City Clerk
Police
FireCommunity
Development
Public Works
Agency
Human
Manager
Assistant City
Manager / CFO
Boards and
Commissions
Library
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City Manager’s Office
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.866.2936
TTY 847.448.8064
www.cityofevanston.org
June 22, 2018
The Honorable Mayor Stephen H. Hagerty,
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 December 31, 2017 is hereby submitted. The CAFR is prepared
by the City’s Finance Division in accordance with the financial reporting principles and
standards set forth by the Governmental Accounting Standards Board (GASB).
Responsibility for both the accuracy of the data and the completeness and fairness of
the presentation, including all disclosures, rests with the City. We believe the enclosed
data is accurate in all material respects and is reported in a manner designed to fairly
present 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 for the period of January 1, 2017 to December 31, 2017. Management
assumes full responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these
representations, City management 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 generally accepted accounting
principles (GAAP) within the United States of America. Because the cost of internal
controls should not outweigh their benefits, the City’s comprehensive framework of
internal controls has been designed to provide reasonable, rather than absolute,
assurance that the financial statements will be free from material misstatement. As
management, we assert that to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City is required to undergo an annual single audit in conformity with the provisions
of the Single Audit Act of 1984 as amended and U.S. Office of Management and Budget
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Information related to this single audit, including the schedule of federal financial
assistance, findings and recommendations, and auditors' reports on the internal control
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FINANCIAL SECTION
1415 West Diehl Road, Suite 400
Naperville, IL 60563
630.566.8400
INDEPENDENT AUDITOR’S REPORT
The Honorable Stephen H. Hagerty, Mayor
and Members of the City Council
City of Evanston, Illinois
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City of Evanston, Illinois (the City), as of and for the year ended
December 31, 2017, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of Amer ica; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit . We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits co ntained in Government Auditing
Standards, issued by the Comptroller General of the United States . The financial statements of the
Evanston Public Library were not audited in accordance with government Auditing Standards.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements . The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentati on
of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund, a nd the aggregate remaining fund
information of the City of Evanston, Illinois, as of December 31, 2017, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year ended in
conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the other required supplementary information be
presented to supplement the basic financial statements . Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic , or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements . We do not
express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The introductory section,
combining and individual fund financial statements and schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual fund financial statements and sched ules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the basic financial s tatements as
a whole. The introductory and statistical sections have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
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Other Reporting Required by Government Auditing Standards
In accordance with Governmental Auditing Standards, we have also issued our report dated
June 22, 2018 on our consideration of the City’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing and not to
provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Governmental Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
Naperville, Illinois
June 22, 2018
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GENERAL PURPOSE EXTERNAL
FINANCIAL STATEMENTS
(Unaudited)
MD&A 1
MANAGEMENT’S
DISCUSSION AND ANALYSIS
DECEMBER 31, 2017
The City of Evanston (the City) Discussion and Analysis is designed to (1) assist the reader in focusing on
significant financial issues, (2) provide an overview of the City's financial activity, (3) identify changes in
the City's financial position (its ability to address the next and subsequent year challenges), (4) identify any
material deviations from the financial plan (the approved budget), and (5) identify individual fund issues
or concerns. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on page 4 of
this report.
FINANCIAL HIGHLIGHTS
A. The City's net position increased by $4,026,438 from the prior fiscal year. The governmental net
position decreased by $890,027 or 0.9% from the prior period and the business-type activities net
position increased by $4,916,465 or 1.7% from the prior period.
B. The governmental activities revenue decreased by $4,786,256 or 3.5% from the prior period principally
due to decrease in Building Permits and litigation settlement receipts. The expenses increased by
$5,351,596 or 4.1% principally due to an increase in administrative costs.
C. The business-type activities revenue increased by $973,729 or 2.4%. The expenses increased by
$628,105 or 2.0% from the prior period.
D. The total cost of all City programs increased by $5,979,701 or 3.7%. This increase was attributable to
increase in administrative costs.
USING THIS ANNUAL REPORT
The financial statements focus 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 unit - the Library). Effective May 1, 2014 the
City of Evanston assumed all rights, powers, assets, properties and duties of the Evanston Township,
including the responsibility of providing the services that were previously provided by the Township. The
functions of the Township are reported along with the City, while the Library financials are shown as a
discrete component unit beginning in 2013.
(Unaudited)
MD&A 2
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
short-term and long-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 (e.g., the City’s Fleet Services Fund).
The first of these government-wide statements is the Statement of Net Position. This is the City-wide
statement of financial position presenting information that includes all the City's assets and liabilities, with
the difference reported as net position. Beginning in 2013, this statement also includes separate presentation
of Library assets and liabilities. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City as a whole is improving or deteriorating. Evaluation
of the overall health of the City would extend to other non-financial factors such as diversification of the
taxpayer base or the condition of City infrastructure in addition to the financial information provided in this
report.
The second government-wide statement is the Statement of Activities - which reports how the City's net
position changed during the current fiscal period. All current period revenues and expenses for the city and
Library are included regardless of when the cash was received or paid. An important purpose of the design
of the statement of activities is to show the financial reliance of the City's distinct activities or functions on
revenues provided by all government-wide sources.
Both government-wide financial statements distinguish governmental activities of the City that are
principally supported by taxes and intergovernmental revenues, such as grants, from business-type activities
that are intended to recover all or a significant portion of their costs through user fees and charges.
Governmental activities include general government, public safety, public service, fleet service, insurance
fund, and culture and recreation. Business-type activities include water and sewer utilities, parking, and
garages. Fiduciary activities, such as employee pension plans and agency funds, are not included in the
government-wide statements since these assets are not available to fund City programs.
The government-wide financial statements are presented on pages 4 - 7 of this report.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS
Fund Financial Statements
A fund is an accountability unit used to maintain control over resources segregated for specific activities or
objectives. The City uses funds to ensure and demonstrate compliance with finance-related laws and
regulations. Within the basic financial statements, fund financial statements focus on the City's most
significant funds, rather than the City as a whole. Major funds are separately reported, while all others are
combined into a single aggregated presentation. Individual fund data for non-major funds is provided in
the form of combining schedules in a later section of this report.
The City has three kinds of funds:
Governmental funds are reported in the fund financial statements and encompass essentially the same
functions reported as governmental activities in the government -wide financial statements. However, the
focus is very different with fund statements providing a distinctive view of the City's governmental funds.
These statements report short-term fiscal accountability focusing on the use of spendable resources and
balances of spendable resources available at the end of the period. They are useful in evaluating annual
financing requirements of governmental programs and the commitment of spendable resources for the near-
term.
(Unaudited)
MD&A 3
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 for General Fund are included in the required supplementary section of
this report. Budgetary comparison schedules for various special revenue funds and the debt service funds
are also included in the supplementary information 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 8 – 12 of this report.
Proprietary funds reported in the fund financial statements generally report services for which the City
charges customers a fee. There are two kinds of proprietary funds. These are enterprise funds and internal
service funds. Enterprise funds essentially encompass the same functions reported as business-type
activities in the government-wide statements. Services such as the water utilities and the parking garages
are provided to customers external to the City organization. Internal service funds provide services and
charge fees to customers within the City organization, such as equipment services (repair and maintenance
of city vehicles) and the insurance fund. Because the City's internal service funds primarily serve
governmental functions, they are included within the governmental activities of the government-wide
financial statements.
Proprietary fund statements and statements for discretely presented component units (reporting is similar
to proprietary funds) provide both short-term and long-term financial information consistent with the focus
provided by the government-wide financial statements. Individual fund information for internal service
funds is found in combining schedules in a later section of this report.
The basic proprietary fund financial statements are presented on pages 13 - 17 of this report.
Fiduciary funds such as the Police and Firefighter's 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. These financial statements report similarly
to proprietary funds.
The basic fiduciary fund financial statements are presented on pages 18 - 19 of this report.
Notes to the financial statements
The accompanying notes to financial statements provide information essential to a full understanding of the
government-wide and fund financial statements. The notes to the financial statements begin on page 20 of
this report.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the City's progress in funding its obligations to provide
pension benefits to its employees. Other supplementary information includes detail by fund and component
unit for receivables, payables, transfers, and payments within the reporting entity. Required supplementary
information can be found on pages 79 – 89 of this report.
(Unaudited)
MD&A 4
Major funds and component units are reported in the basic financial statements, as discussed. Combining
statements, individual statements and schedules for nonmajor and internal service funds are presented in a
subsequent section of this report beginning on page 90. Additional information on capital assets and
long-term debt can be found on page 37 and 47, respectively.
Financial Analysis of the City as a Whole
The City's combined net position increased by $4,026,438 from $187,620,077, to $191,646,515.
STATEMENT OF POSITION
The City’s increase in Net Position principally comes from a decrease in Loan and Bonded Debt from
$217,364,154 to $208,660,702.
The City's total revenues decreased by $3,812,527 or 2.2%. The City's total expenses for all programs
increased by $5,979,701 or 3.7%. Business-type activity revenues increased by $973,729 in the current
fiscal period mainly due to seasonal revenues from Water and Sewer Funds and increased revenues in the
Solid Waste fund. Business-type activity expenses increased by $628,105, while Governmental activity
expense experienced an increase of $5,351,596. The list of expenses can be found in the table below.
The governmental activities experienced a decrease of $890,027 in the net position balance. This is due to
net expenses of $4,687,447, offset by a net transfer in of $3,797,420 from business activities.
The business-type activities experienced an increase of $4,916,465 in the net position balance primarily
due to the net operating surplus in the Sewer Fund in the amount of $5,003,683.
Governmental Activities Business-type Activities Total Primary Government
2017 2016 2017 2016 2017 2016
Current and Other Assets 99,861,288$ 103,939,418$ 19,131,286$ 24,450,701$ 118,992,574$ 128,390,119$
Capital Assets 173,725,753 167,678,799 345,208,112 344,972,099 518,933,865 512,650,898
Total Assets 273,587,041 271,618,217 364,339,398 369,422,800 637,926,439 641,041,017
Deferred Outflows 44,109,463 39,709,489 2,932,513 3,882,555 47,041,976 43,592,044
317,696,504 311,327,706 367,271,911 373,305,355 684,968,415 684,633,061
Long-Term Liabilities 358,414,011 359,259,565 71,064,803 80,634,320 429,478,814 439,893,885
Other Liabilities 12,289,943 10,206,291 2,716,558 4,891,775 15,006,501 15,098,066
Total Liabilities 370,703,954 369,465,856 73,781,361 85,526,095 444,485,315 454,991,951
Deferred Inflows 48,041,760 42,021,032 794,825 - 48,836,585 42,021,032
Total Liabilities and
Deferred Inflows 418,745,714 411,486,888 74,576,186 85,526,095 493,321,900 497,012,983
Net Investment in
Capital Assets 51,574,591 51,587,637 278,446,440 268,851,203 330,021,031 320,438,840
Restricted 11,990,220 18,523,340 - - 11,990,220 18,523,340
Unrestricted (Deficit)(164,614,021) (170,270,160) 14,249,285 18,928,057 (150,364,736) (151,342,103)
Total Net Position (101,049,210)$ (100,159,183)$ 292,695,725$ 287,779,260$ 191,646,515$ 187,620,077$
(Unaudited)
MD&A 5
The following table provides a summary of the City's changes in net position:
STATEMENT OF CHANGES IN NET POSITION
Governmental Activities Business-type Activities Total Primary Government
2017 2016 2017 2016 2017 2016
Revenue
Program Revenues:
Charges for services 26,525,620$ 31,393,403$ 40,657,359$ 40,187,376$ 67,182,979$ 71,580,779$
Operating grants and
contributions 5,931,678 6,808,596 - - 5,931,678 6,808,596
Capital grants and
contributions 325,000 368,000 - - 325,000 368,000
General Revenues:
Sales taxes 16,070,630 17,932,528 - - 16,070,630 17,932,528
Property taxes 46,563,227 45,610,041 - - 46,563,227 45,610,041
Utility taxes 6,607,719 6,661,934 - - 6,607,719 6,661,934
Income taxes 6,767,021 7,155,930 - - 6,767,021 7,155,930
Other 21,635,913 19,399,072 203,532 (245,486) 21,839,445 19,153,586
Investment income 234,780 118,340 113,874 59,146 348,654 177,486
Total Revenue 130,661,588 135,447,844 40,974,765 40,001,036 171,636,353 175,448,880
Expenses
General management and
support 20,889,788 18,162,579 - - 20,889,788 18,162,579
Public safety 61,191,026 55,625,369 - - 61,191,026 55,625,369
Public works 24,793,288 13,668,315 - - 24,793,288 13,668,315
Health and human
resources development 3,354,193 3,319,396 - - 3,354,193 3,319,396
Recreation and cultural
opportunities 14,743,753 14,379,964 - - 14,743,753 14,379,964
Housing and economic
development 7,022,697 21,062,983 - - 7,022,697 21,062,983
Interest 3,354,290 3,778,833 - - 3,354,290 3,778,833
Water - - 12,239,035 11,450,783 12,239,035 11,450,783
Sewer - - 6,540,536 6,683,233 6,540,536 6,683,233
Solid Waste - - 4,906,658 4,966,872 4,906,658 4,966,872
Motor vehicle parking
system - - 8,574,651 8,531,887 8,574,651 8,531,887
Total Expense 135,349,035 129,997,439 32,260,880 31,632,775 167,609,915 161,630,214
Increase (decrease) in net
position before transfers (4,687,447) 5,450,405 8,713,885 8,368,261 4,026,438 13,818,666
Transfers 3,797,420 433,484 (3,797,420) (433,484) - -
Increase/(Decrease) in
Net Position (890,027) 5,883,889 4,916,465 7,934,777 4,026,438 13,818,666
Net Position - Beginning (100,159,183) (106,043,072) 287,779,260 279,844,483 187,620,077 173,801,411
Net Position - Ending (101,049,210)$ (100,159,183)$ 292,695,725$ 287,779,260$ 191,646,515$ 187,620,077$
(Unaudited)
MD&A 6
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
period in comparison with upcoming financing requirements. Governmental funds reported fund balances
of $36,862,602 as of December 31, 2017 which includes $300,000 nonspendable, $11,418,598 restricted,
$16,480,742 assigned and $8,663,262 unassigned fund balance. The restricted fund balance consists of
amounts required to be set aside by external authorities.
Fund Balance Amounts reported for governmental activities are different than the statement of net position
because of the treatment of capital assets, liabilities, payables and most importantly pension liabilities. This
reporting difference is clearly stated on page 10 of this report.
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 reported an increase of $1,679,749. The increase is due to net inter-
fund transfers to the General Fund in the amount of $8,775,017 offset by excess of expenditures over
revenues in the amount of $7,095,268.
The 2015 Annual Budget did not include the change in treatment of Police and Firefighter Pension employer
contributions, which are now included in the General Fund. 2016 was the first time that these transfers were
included in the Adopted Budget documents. These had previously been reported in a separate fund. This
increase involved the inclusion of Property tax and Personal Property Replacement Taxes formerly included
in the Police and Firefighter Pension funds. These revenues are now included in the General Fund and then
transferred to the respective pension fund both in budget and in practice.
The fund balance of the General Obligation Debt Fund had a decrease of $504,215, from $745,996 to
$241,781.
The Employer Pension Contribution Fund has been eliminated in 2015 with the implementation of GASB
67/68 Statements. These expenditures and revenues are now included in the General Fund.
Combined Nonmajor Governmental Funds
Combined nonmajor fund balances totaled $23,273,139, a decrease of $4,916,306 from prior period of
$28,189,445. Non-major funds with surpluses for the fiscal year include Motor Fuel, Emergency Telephone
System, Neighborhood Improvement, Affordable Housing, Home Fund, Community Development Block
Grant, Community Development Loan, Good Neighbor, General Assistance, Dempster Dodge TIF, Howard
Ridge TIF, West Evanston TIF and Crown Capital Project. Nonmajor funds with deficits for the period
include Economic Development, SSD #4, Chicago Main TIF, SSD #6, Howard Hartrey TIF, Washington
National TIF, Capital Improvements and Special Assessment Capital Projects.
(Unaudited)
MD&A 7
Proprietary Funds
The proprietary fund statements share the same focus as the government -wide statements, reporting both
short-term and long-term information about financial status.
The proprietary funds operated by the City are the Water, Sewer, Solid Waste and Parking Funds. These
funds have a combined net increase of $4,916,465 in the net position. The Sewer Fund reported the highest
increase in the amount of $5,003,683. This increase is mainly due to the operating surplus and reduced debt
service expense. The Parking Fund added $608,448 to the net position during the year while Water and
Solid Waste Funds reported a decrease of $606,483 and $$89,183, respectively. Although net position in
these proprietary funds showed an overall healthy increase, it is important to keep in mind that the Sewer
Fund carries a substantial debt level followed by Parking and Water Funds with lesser debts.
Internal Service Funds
The City's combined internal service fund’s net position decreased by $2,128,048 from $6,874,639,as of
January 1, 2017 to $4,746,591 as of December 31, 2017. Fleet Fund and Equipment Replacement reported
a combined net decrease in net position of $786,568. The net deficit in the Insurance Fund increased by
$1,341,480 mainly due to increase in potential claim liabilities.
General Fund Budgetary Highlights
Total budgetary basis revenues for the General Fund were $104,239,561 while total expenditures were
$111,334,829. Overall General Fund revenue came in lower than budget by $6,768,497. Total expenditures
in the General Fund were lower than budgeted amounts by $2,357,436. The actual net deficiency of
$7,095,268 was offset by $8,775,017 in net transfers in from other funds.
Capital Assets
The City’s Capital Asset policy generally includes capitalizing assets or properties with $20,000 or more
in value (with the exception of vehicles to the $20,000 threshold). The City's capital assets (net of
depreciation) for governmental and business-type activities as of December 31, 2017, were $518,933,865.
The governmental funds capital assets had a net increase of $6,046,954, while business type capital assets
increased by $236,013. Overall, capital assets increased by 1.2% for the City as a whole. The net increase
in governmental funds capital assets were principally due to an increase in capital projects for the year.
Readers desiring more detailed information on capital asset activity should refer to Note 5 in the Notes to
the Financial Statements.
Long-Term Debt
As of December 31, 2017, the City had outstanding total general obligation bonded debt of $143,470,868
of which $25,504,953 was for business type activities to be paid for by the City's Parking, Water, Solid
Waste and Sewer Funds. This represents a $4,397,125 decrease from 2016. The City's general obligation
debt service principal payments for 2017 totaled $15,840,988. During the current year, the City issued
$26,091,464 and refunded $8,789,464 in general obligation bonds. As a home rule government under
Illinois law, there is no legal debt limit for the City. Readers desiring more detailed information on long -
term debt should refer to Note 8 in the Notes to the Financial Statements.
Bond Ratings
The City's general obligation bonds are rated Aa2 by Moody's Investor Rating Service and AA+ by Fitch
Ratings.
(Unaudited)
MD&A 8
Economic Factors
Evanston is a diverse community consisting primarily of residential homes, several nonprofit organizations
including a very well-known private university, two hospitals, and many smaller scale retail shops and
restaurants as well as some popular big box retailers. In general, economically sensitive revenues such as
Income Tax, Sales Tax, and Real Estate Transfer Tax came in higher than budgeted revenues while Utility
Taxes were below budget. New and Redevelopment construction remains strong at the University and in
the City’s downtown which has added another major hotel, and mixed use multiunit housing structures.
The unemployment rate in Evanston has stayed slightly below same level as many other cities in the State
due in part to the stable economy that includes Northwestern University. The City continues to maintain its
lower unemployment rate compared to state and federal unemployment levels. The primary employers in
the City include Northwestern University, two hospitals, the local high school, and elementary school
district, Rotary International, several not-for-profit organizations, and numerous retail businesses and
restaurants. The City’s equalized assessed value for real property as of the end of fiscal year 2016 increased
by 21.6% from $2,196,021,525 to $2,670,411,769.
Contacting the City's Financial Management
This financial report is designed to provide a general overview of the City's finances, comply with finance-
related laws and regulations, and demonstrate the City's commitment to public accountability. If you have
questions about this report or would like to request additional information, contact the City Manager’s
Office, Finance Division at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201, Telephone
847-866-2934, or access the website at www.cityofevanston.org.
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
December 31, 2017
Component Unit
Governmental Business-Type Evanston Public
Activities Activities Total Library
ASSETS
Cash and equivalents 15,457,547$ 12,182,602$ 27,640,149$ 5,665,011$
Investments 22,197,493 - 22,197,493 -
Receivables (net, where applicable, of
allowances for uncollectibles)
Property taxes 40,970,189 410,000 41,380,189 6,972,225
Utility taxes 773,993 - 773,993 -
Accounts - 5,645,907 5,645,907 -
Notes 8,435,420 214,000 8,649,420 -
Special assessments 616,153 - 616,153 -
Accrued interest - 9,479 9,479 -
Other 1,890,739 44,211 1,934,950 95
Due from other governments 6,897,928 - 6,897,928 57,834
Due from primary government - - - 12,794
Due from fiduciary funds 10,000 - 10,000 -
Internal balances 142,598 (142,598) - -
Inventories 963,433 767,685 1,731,118 -
Prepaid items 1,505,795 - 1,505,795 -
Capital assets
Capital assets not being depreciated 37,236,311 6,662,663 43,898,974 311,380
Capital assets being depreciated, net 136,489,442 338,545,449 475,034,891 11,599,662
Total Assets 273,587,041 364,339,398 637,926,439 24,619,001
DEFERRED OUTFLOWS OF RESOURCES
Pension Items - Police 17,597,313 - 17,597,313 -
Pension Items - Fire 13,605,333 - 13,605,333 -
Pension Items - IMRF 12,906,817 2,932,513 15,839,330 1,538,265
Total Deferred Outflows of Resources 44,109,463 2,932,513 47,041,976 1,538,265
Total Assets and Deferred Outflows
of Resources 317,696,504 367,271,911 684,968,415 26,157,266
Primary Government
(This statement is continued on the following page.)
- 4 -
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
December 31, 2017
Component Unit
Governmental Business-Type Evanston Public
Activities Activities Total Library
LIABILITIES
Vouchers payable 9,540,454$ 2,358,856$ 11,899,310$ 185,487$
Retainage payable - 70,609 70,609 -
Accrued payroll 1,110,921 - 1,110,921 -
Accrued interest 378,652 287,093 665,745 -
Due to other governments 94,969 - 94,969 -
Due to component unit 12,794 - 12,794 -
Due to fiduciary fund 60,020 - 60,020 -
Unearned revenue 1,092,133 - 1,092,133 -
Noncurrent liabilities
Due within one year 16,556,417 10,882,356 27,438,773 407,593
Due in more than one year 341,857,594 60,182,447 402,040,041 4,669,210
Total Liabilities 370,703,954 73,781,361 444,485,315 5,262,290
DEFERRED INFLOWS OF RESOURCES
Pension items - Police Pension 2,678,500 - 2,678,500 -
Pension items - Fire Pension 2,699,350 - 2,699,350 -
Pension items - IMRF 1,693,721 384,825 2,078,546 201,861
Property taxes levied for future periods 40,970,189 410,000 41,380,189 6,972,225
Total Deferred Inflows of Resources 48,041,760 794,825 48,836,585 7,174,086
Total Liabilities and Deferred Inflows
of Resources 418,745,714 74,576,186 493,321,900 12,436,376
NET POSITION
Net investment in capital assets 51,574,591 278,446,440 330,021,031 8,752,321
Restricted for
Highway maintenance 2,373,730 - 2,373,730 -
Emergency telephone system 181,996 - 181,996 -
HUD approved projects 325,996 - 325,996 -
Neighborhood improvements 2,218,337 - 2,218,337 -
Capital improvements - - - 308,399
Debt service 6,245,662 - 6,245,662 4,089
General assistance 644,499 - 644,499 -
Endowment - - - 4,195,455
Unrestricted (164,614,021) 14,249,285 (150,364,736) 460,626
Total Net Position (101,049,210)$ 292,695,725$ 191,646,515$ 13,720,890$
Primary Government
See accompanying notes to financial statements.
- 5 -
CITY OF EVANSTON, ILLINOIS
Statement of Activities
For the Fiscal Year Ended December 31, 2017
Operating Capital
FUNCTIONS/PROGRAMS Charges for Grants and Grants and
PRIMARY GOVERNMENT Expenses Services Contributions Contributions
Governmental Activities
General management and support 20,889,788$ 8,144,927$ 28,297$ -$
Public safety 61,191,026 3,408,811 426,450 -
Public works 24,793,288 663,243 2,430,696 -
Health and human resource development 3,354,193 886,734 255,858 -
Recreational and cultural opportunities 14,743,753 5,668,957 453,170 -
Housing and economic development 7,022,697 7,752,948 2,337,207 325,000
Interest 3,354,290 - - -
Total governmental activities 135,349,035 26,525,620 5,931,678 325,000
Business-Type Activities
Water 12,239,035 17,587,796 - -
Sewer 6,540,536 12,477,659 - -
Solid waste 4,906,658 4,061,508 - -
Motor vehicles parking system 8,574,651 6,530,396 - -
Total business-type activities 32,260,880 40,657,359 - -
Total Primary Government 167,609,915$ 67,182,979$ 5,931,678$ 325,000$
Evanston Public Library
Community Services 8,903,074$ 452,441$ 177,985$ -$
Interest 23,084 - - -
Total Evanston Public Library 8,926,158$ 452,441$ 177,985$ -$
Transfers
Change in Net Position
Net Position, January 1
Net Position, December 31
Program Revenues
- 6 -
Component
Unit
Total Evanston
Governmental Business-Type Primary Public
Activities Activities Government Library
(12,716,564)$ -$ (12,716,564)$ -$
(57,355,765) - (57,355,765) -
(21,699,349) - (21,699,349) -
(2,211,601) - (2,211,601) -
(8,621,626) - (8,621,626) -
3,392,458 - 3,392,458 -
(3,354,290) - (3,354,290) -
(102,566,737) - (102,566,737) -
- 5,348,761 5,348,761 -
- 5,937,123 5,937,123 -
- (845,150) (845,150) -
- (2,044,255) (2,044,255) -
- 8,396,479 8,396,479 -
(102,566,737) 8,396,479 (94,170,258) -
- - - (8,272,648)
- - - (23,084)
- - - (8,295,732)
General Revenues
Taxes
Property tax 46,563,227 - 46,563,227 6,709,404
Other taxes 7,034,356 - 7,034,356 -
Personal property replacement taxes 1,394,387 - 1,394,387 -
Sales and home rule tax 16,070,630 - 16,070,630 -
Utility tax 6,607,719 - 6,607,719 -
Liquor tax 3,009,899 - 3,009,899 -
Parking tax 2,965,327 - 2,965,327 -
Real estate transfer tax 3,888,522 - 3,888,522 -
Income tax 6,767,021 - 6,767,021 -
Investment income 234,780 113,874 348,654 570,974
Gain on sale of capital assets - 203,532 203,532 -
Miscellaneous 3,343,422 - 3,343,422 395
Transfers 3,797,420 (3,797,420) - -
Total 101,676,710 (3,480,014) 98,196,696 7,280,773
Change in Net Position (890,027) 4,916,465 4,026,438 (1,014,959)
Net Position, January 1 (100,159,183) 287,779,260 187,620,077 14,735,849
Net Position, December 31 (101,049,210)$ 292,695,725$ 191,646,515$ 13,720,890$
Net (Expense) Revenue and Change in Net Position
Primary Government
See accompanying notes to financial statements.
- 7 -
General Nonmajor Total
Obligation Governmental Governmental
General Debt Service Funds Funds
Cash and equivalents 4,036,411$ 10,000$ 9,834,513$ 13,880,924$
Investments 1,731,308 2,278,821 18,187,364 22,197,493
Receivables
Property taxes 28,599,196 10,879,993 1,491,000 40,970,189
Utility 773,993 - - 773,993
Notes 300,000 - 8,135,420 8,435,420
Special assessments - - 616,153 616,153
Other 1,861,808 - 12,121 1,873,929
Due from other governments 6,120,698 - 770,992 6,891,690
Due from component unit - - - -
Due from other funds 3,846,698 - 948,225 4,794,923
Advances to fiduciary funds 10,000 - - 10,000
Advances to other funds - - - -
Total Assets 47,280,112$ 13,168,814$ 39,995,788$ 100,444,714$
December 31, 2017
CITY OF EVANSTON, ILLINOIS
Balance Sheet
Governmental Funds
ASSETS
(This statement is continued on the following page.)
- 8 -
General Nonmajor Total
Obligation Governmental Governmental
General Debt Service Funds Funds
LIABILITIES
Vouchers payable 3,569,393$ -$ 4,190,241$ 7,759,634$
Accrued payroll 1,110,921 - - 1,110,921
Due to other governments - - 94,969 94,969
Due to other funds 23,967 2,047,040 1,182,072 3,253,079
Due to component unit - - 12,794 12,794
Due to fiduciary funds 60,020 - - 60,020
Advances from other funds 476,800 - - 476,800
Unearned revenue 92,133 - 1,000,000 1,092,133
Total Liabilities 5,333,234 2,047,040 6,480,076 13,860,350
DEFERRED INFLOWS OF RESOURCES
Long-term loans - - 8,751,573 8,751,573
Property taxes levied for future periods 28,599,196 10,879,993 1,491,000 40,970,189
Total Deferred Inflows of Resources 28,599,196 10,879,993 10,242,573 49,721,762
Total Liabilities and Deferred Inflows
of Resources 33,932,430 12,927,033 16,722,649 63,582,112
FUND BALANCES
Nonspendable
Notes 300,000 - - 300,000
Restricted
Highway maintenance - - 2,373,730 2,373,730
Emergency telephone system - - 181,996 181,996
HUD approved projects - - 325,996 325,996
Neighborhood improvements - - 1,646,715 1,646,715
Debt service - 241,781 6,003,881 6,245,662
Township - - 644,499 644,499
Assigned
Capital improvements - - 12,301,125 12,301,125
Other 4,179,617 - - 4,179,617
Unassigned 8,868,065 - (204,803) 8,663,262
Total Fund Balances 13,347,682 241,781 23,273,139 36,862,602
Total Liabilities, Inflows of Resources,
and Fund Balances 47,280,112$ 13,168,814$ 39,995,788$ 100,444,714$
December 31, 2017
CITY OF EVANSTON, ILLINOIS
Balance Sheet
Governmental Funds
See accompanying notes to financial statements.
- 9 -
Governmental Activities in the Statement of Net Position
Fund Balances of Governmental Funds 36,862,602$
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds
Total governmental capital assets 173,725,753$
Less internal service fund portion 7,894,234 165,831,519
OPEB liability payable is not due and payable in the current period and,
therefore, is not reported in the governmental funds (2,761,012)
Interest payable is not due and payable in the current period and, therefore,
not reported in the governmental funds (378,652)
Long-term liabilities, including bonds payable, are not due and payable in
the current period and, therefore, are not reported in the governmental funds
General obligation bonds payable (117,965,915)
Bonds premium liability (4,185,247)
First Bank loan (648,812)
Compensated absences payable (10,387,657)
Net pension liability is shown as a liability on the statement of net position
Illinois Municipal Retirement Fund (12,614,160)
Police Pension Fund (110,994,072)
Firefighters' Pension Fund (94,343,860)
Differences between expected and actual experiences, assumption changes, net
differences between projected and actual earnings are recognized as deferred
outflows and inflows of resources on the statement of net position
Illinois Municipal Retirement Fund 11,213,096
Police Pension Fund 14,918,813
Firefighters' Pension Fund 10,905,983
Deferred inflows for long-term loans are not a available and, therefore, not
revenue in fund financial statements 8,751,573
The net position of the internal service fund is included in the governmental
activities on the statement of net position 4,746,591
Net Position of Governmental Funds (101,049,210)$
December 31, 2017
CITY OF EVANSTON, ILLINOIS
Reconciliation of Fund Balances of Governmental Funds to the
See accompanying notes to financial statements.
- 10 -
General Nonmajor Total
Obligation Governmental Governmental
General Debt Service Funds Funds
Revenues
Taxes 58,812,954$ 10,797,411$ 8,546,975$ 78,157,340$
Licenses and permits 13,357,610 - - 13,357,610
Special assessments - - 260,307 260,307
Intergovernmental 18,024,694 - 4,602,495 22,627,189
Charges for services 8,679,945 - 33,339 8,713,284
Fines and forfeits 3,467,693 - - 3,467,693
Investment income 38,558 36,782 159,440 234,780
Miscellaneous 1,858,107 83,293 1,901,985 3,843,385
Total Revenues 104,239,561 10,917,486 15,504,541 130,661,588
Expenditures
Current
General management and support 16,839,903 98,350 1,214,019 18,152,272
Public safety 63,444,262 - 902,853 64,347,115
Public works 13,032,463 - 1,008,651 14,041,114
Health and human resource development 3,110,698 - - 3,110,698
Recreational and cultural opportunities 12,371,359 - - 12,371,359
Housing and economic development 2,536,144 - 4,689,058 7,225,202
Capital outlay - - 14,953,180 14,953,180
Debt service
Principal - 19,253,327 5,000,000 24,253,327
Interest - 3,846,469 192,830 4,039,299
Fiscal charges - 2,218 - 2,218
Total Expenditures 111,334,829 23,200,364 27,960,591 162,495,784
Excess (Deficiency) of Revenues
Over Expenditures (7,095,268) (12,282,878) (12,456,050) (31,834,196)
Other Financing Sources (Uses)
Issuance of bonds - 8,481,464 16,630,000 25,111,464
Issuance of loans - - 520,000 520,000
Premium (discount) on bonds issued - 401,638 525,437 927,075
Transfers in 12,446,096 2,895,561 2,086,201 17,427,858
Transfers (out)(3,671,079) - (12,221,894) (15,892,973)
Total Other Financing Sources (Uses)8,775,017 11,778,663 7,539,744 28,093,424
Net Change in Fund Balances 1,679,749 (504,215) (4,916,306) (3,740,772)
Fund Balances, January 1 11,667,933 745,996 28,189,445 40,603,374
Fund Balances, December 31 13,347,682$ 241,781$ 23,273,139$ 36,862,602$
CITY OF EVANSTON, ILLINOIS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended December 31, 2017
See accompanying notes to financial statements.
- 11 -
Net Change in Fund Balances -
Total Governmental Funds (3,740,772)$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures; however, they are capitalized and
and depreciated in the statement of activities 15,824,184
Some expenses in the statement of net assets (e.g., depreciation) do not require the use of
current financial resources and, therefore, are not reported as expenditures in governmental funds
Depreciation (9,447,877)
The loss on disposal of capital assets increases the expense on the statement of activities -
The issuance of long-term debt is reported as an other financing sources in governmental funds,
but as an increase of principal outstanding in the statement of activities (26,558,539)
The repayment of long-term debt is reported as an expenditure when due in governmental
funds but as a reduction of principal outstanding in the statement of activities 24,253,327
The amortization of premium on long-term debt is reported as a reduction of interest
expense on the statement of activities 725,212
Changes in net other postemployment benefits obligations are reported only in the statement
of activities (412,224)
The change in compensated absences payable is shown as an expense on the statement of activities (243,180)
The change in the accrual of interest is reported as interest expense on the statement of activities (37,985)
The change in the net pension liability is reported only in the statement of activities
Illinois Municipal Retirement Fund 1,941,282
Police Pension Fund 1,310,735
Firefighters' Pension Fund (1,800,293)
The change in deferred inflows and outflows of resources is reported only in the
statement of activities
Illinois Municipal Retirement Fund (6,865,545)
Police Pension Fund 3,310,933
Firefighters' Pension Fund 2,407,141
The changed in deferred inflows for long-term loans is not expense on the statement of activities 571,622
Internal service funds are reported separately in the fund financial statements (2,128,048)
Change in Net Position of Governmental Activities (890,027)$
CITY OF EVANSTON, ILLINOIS
Reconciliation of Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities
For the Fiscal Year Ended December 31, 2017
See accompanying notes to financial statements.
- 12 -
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
Proprietary Funds
December 31, 2017
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Current Assets
Cash and cash equivalents 5,596,551$ 1,914,625$ -$ 4,671,426$ 12,182,602$ 1,576,623$
Receivables
Property taxes - - 410,000 - 410,000 -
Accounts - water and sewerage charges
Accounts - billed 1,766,247 150,437 120,074 - 2,036,758 -
Accounts - unbilled 1,121,419 1,908,988 578,742 - 3,609,149 -
Accrued interest 516 513 8,450 9,479 -
Other 2,321 - 28,375 13,515 44,211 16,810
Inventories 581,370 186,314 - - 767,684 963,433
Prepaid items - - - - - 1,505,795
Due from other funds - 1,124,281 - 51,146 1,175,427 67,438
Due from other governments - - - - - 6,238
Advances to other funds - - - 476,800 476,800 -
Total Current Assets 9,068,424 5,285,158 1,137,191 5,221,337 20,712,110 4,136,337
Noncurrent Assets
Capital assets
Capital assets not being depreciated 1,637,514 375,176 - 4,649,973 6,662,663 -
Capital assets being depreciated 113,605,950 256,198,944 - 91,309,791 461,114,685 24,615,193
Accumulated depreciation (27,533,992) (61,253,278) - (33,781,966) (122,569,236) (16,720,959)
Total Capital Assets 87,709,472 195,320,842 - 62,177,798 345,208,112 7,894,234
Other assets
Notes receivable - - - 214,000 214,000 -
Total Noncurrent Assets 87,709,472 195,320,842 - 62,391,798 345,422,112 7,894,234
Total Assets 96,777,896 200,606,000 1,137,191 67,613,135 366,134,222 12,030,571
Deferred Outflows of Resources
Pension items - IMRF 1,790,725 388,602 257,224 495,962 2,932,513 -
Total Deferred Outflows of Resources 1,790,725 388,602 257,224 495,962 2,932,513 -
Total Assets and Deferred
Outflows of Resources 98,568,621 200,994,602 1,394,415 68,109,097 369,066,735 12,030,571
(This statement is continued on the following page.)
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CITY OF EVANSTON, ILLINOIS
Statement of Net Position
Proprietary Funds
December 31, 2017
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Current Liabilities
Vouchers payable 972,253$ 742,332$ 205,750$ 438,521$ 2,358,856$ 1,780,820$
Retainage payable 36,965 3,397 - 30,247 70,609 -
Interest payable - restricted 64,135 213,992 - - 278,127 -
Interest payable - - 111 8,855 8,966 -
Notes payable - IEPA 187,465 6,115,014 - - 6,302,479 -
Current portion of GO bonds payable 992,649 414,456 20,467 2,964,363 4,391,935 -
Claims payable - - - - - 1,477,000
Due to other funds 325,000 42,159 1,427,665 - 1,794,824 989,884
Due to component unit - - - - - -
Compensated absences payable 130,748 25,388 4,913 26,893 187,942 26,931
Total Current Liabilities 2,709,215 7,556,738 1,658,906 3,468,879 15,393,738 4,274,635
Noncurrent Liabilities
Notes payable - IEPA 3,340,824 30,684,805 - - 34,025,629 -
General obligation bonds payable 19,887,388 2,006,561 22,019 168,147 22,084,115 -
OPEB liability 259,149 76,397 60,656 58,708 454,910 91,121
Net pension liability - IMRF 1,750,120 379,791 251,392 484,717 2,866,020 -
Claims payable - - - - - 2,810,500
Compensated absences payable 522,993 101,554 19,653 107,573 751,773 107,724
Total Long-Term Liabilities 25,760,474 33,249,108 353,720 819,145 60,182,447 3,009,345
Total Liabilities 28,469,689 40,805,846 2,012,626 4,288,024 75,576,185 7,283,980
Deferred Inflows of Resources
Pension items - IMRF 234,991 50,995 33,755 65,084 384,825 -
Deferred property taxes - - 410,000 - 410,000 -
Total Deferred Inflows of Resources 234,991 50,995 443,755 65,084 794,825 -
Total Liabilities and Deferred
Inflows of Resources 28,704,680 40,856,841 2,456,381 4,353,108 76,371,010 7,283,980
Net Position (Deficit)
Net investment in capital assets 63,301,146 156,100,006 - 59,045,288 278,446,440 7,894,234
Unrestricted 6,562,795 4,037,755 (1,061,966) 4,710,701 14,249,285 (3,147,643)
Total Net Position (Deficit)69,863,941$ 160,137,761$ (1,061,966)$ 63,755,989$ 292,695,725$ 4,746,591$
See accompanying notes to financial statements.
- 14 -
CITY OF EVANSTON, ILLINOIS
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended December 31, 2017
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Operating Revenues
Charges for services 16,983,549$ 12,455,907$ 4,033,078$ 6,316,667$ 39,789,201$ 21,611,583$
Miscellaneous 604,247 21,752 28,430 213,729 868,158 19,016
Total Operating Revenues 17,587,796 12,477,659 4,061,508 6,530,396 40,657,359 21,630,599
Operating Expenses Excluding Depreciation
Administration 1,588,801 1,599,402 939,115 1,995,052 6,122,370 -
Operations 7,511,591 272,307 3,965,745 3,778,746 15,528,389 24,331,220
Total Operating Expenses Excluding Depreciation 9,100,392 1,871,709 4,904,860 5,773,798 21,650,759 24,331,220
Operating Income (Loss) Before Depreciation 8,487,404 10,605,950 (843,352) 756,598 19,006,600 (2,700,621)
Depreciation 2,470,280 3,530,787 - 2,561,771 8,562,838 1,780,829
Operating Income (Loss)6,017,124 7,075,163 (843,352) (1,805,173) 10,443,762 (4,481,450)
Non-Operating Revenue (Expenses)
Investment income 35,784 16,023 - 62,067 113,874 2,852
Interest expense (668,363) (1,128,775) (1,798) (239,082) (2,038,018) -
Gain (loss) on disposal of capital assets 203,532 (9,265) - - 194,267 88,015
Total Non-Operating Revenues (Expenses)(429,047) (1,122,017) (1,798) (177,015) (1,729,877) 90,867
Income (Loss) Before Transfers 5,588,077 5,953,146 (845,150) (1,982,188) 8,713,885 (4,390,583)
Transfers
Transfers in - - 755,967 4,120,636 4,876,603 2,300,000
Transfers (out)(6,194,560) (949,463) - (1,530,000) (8,674,023) (37,465)
Total Transfers (6,194,560) (949,463) 755,967 2,590,636 (3,797,420) 2,262,535
Net Income (Loss)(606,483) 5,003,683 (89,183) 608,448 4,916,465 (2,128,048)
Net Position (Deficit), January 1 70,470,424 155,134,078 (972,783) 63,147,541 287,779,260 6,874,639
Net Position (Deficit), December 31 69,863,941$ 160,137,761$ (1,061,966)$ 63,755,989$ 292,695,725$ 4,746,591$
See accompanying notes to financial statements.
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CITY OF EVANSTON, ILLINOIS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended December 31, 2017
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Cash Flows from Operating Activities
Receipts from customers and users 16,825,872$ 12,695,766$ 4,092,480$ 6,534,165$ 40,148,283$ 2,928,507$
Receipts from/(payments for)
interfund services provided (1,028,986) (255,371) (648,212) (1,282,315) (3,214,884) 19,153,702
Receipts from other agencies - - - - - 522,849
Payments to suppliers (7,994,804) (249,117) (827,654) (4,382,732) (13,454,307) (2,550,796)
Payments to employees (415,481) (1,007,897) (3,351,534) (1,277,360) (6,052,272) (4,288,303)
Payments for insurance premiums - - - - - (16,867,500)
Net Cash Provided from Operating Activities 7,386,601 11,183,381 (734,920) (408,242) 17,426,820 (1,101,541)
Cash Flows from Noncapital Financing Activities
Transfers in (out)(6,194,560) (949,463) 755,967 2,590,636 (3,797,420) 2,262,535
Net Cash from Noncapital Financing Activities (6,194,560) (949,463) 755,967 2,590,636 (3,797,420) 2,262,535
Cash Flows from Capital and Related Financing Activities
Sale of capital assets 203,532 - - - 203,532 88,015
Acquisition and construction of capital assets (4,482,684) (2,159,080) - (2,191,624) (8,833,388) (1,695,815)
Proceeds from general obligation bonds 980,000 - - - 980,000 -
Proceeds from loans 1,736,056 - - - 1,736,056 -
Principal paid on general obligation bonds (913,044) (396,366) (19,206) (4,048,509) (5,377,125) -
Interest paid on general obligation bonds (675,762) (1,178,746) (1,841) (282,483) (2,138,832) -
Principal paid on IEPA loans (110,787) (6,553,398) - - (6,664,185) -
Net Cash from Capital and Related Financing Activities (3,262,689) (10,287,590) (21,047) (6,522,616) (20,093,942) (1,607,800)
Cash Flows from Investing Activities
Interest income 35,268 15,510 - 53,617 104,395 2,852
Net Cash from Investing Activities 35,268 15,510 - 53,617 104,395 2,852
Net Increase (Decrease) in Cash and Cash Equivalents (2,035,380) (38,162) - (4,286,605) (6,360,147) (443,954)
Cash and Cash Equivalents
Beginning 7,631,931 1,952,787 - 8,958,031 18,542,749 2,020,577
Ending 5,596,551$ 1,914,625$ -$ 4,671,426$ 12,182,602$ 1,576,623$
(This statement is continued on the following page.)
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CITY OF EVANSTON, ILLINOIS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended December 31, 2017
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided from Operating Activities
Operating income (loss)6,017,124$ 7,075,163$ (843,352)$ (1,805,173)$ 10,443,762$ (4,481,450)$
Adjustments to reconcile operating income (loss) to
net cash provided from operating activities
Depreciation 2,470,280 3,530,787 - 2,561,771 8,562,838 1,780,829
Changes in assets and liabilities
Accounts receivable (761,924) 218,107 30,972 (1,231) (514,076) (8,165)
Notes receivable - - - 5,000 5,000 -
Interfund receivable 40 331,935 - (51,130) 280,845 355,374
Prepaid expenses - - - - - 932,155
Inventories (226) (37,042) - - (37,268) (81,783)
Compensated absences 30,205 (3,735) (4,784) 518 22,204 1,758
OPEB liability 20,888 7,663 15,068 2,986 46,605 9,379
Pension items - IMRF 653,735 150,325 99,120 171,783 1,074,963 -
Vouchers payable (1,305,999) (131,981) (5,493) (658,669) (2,102,142) 1,411,646
Interfund payable 262,478 42,159 (26,451) (634,097) (355,911) 619,085
Claims payable - - - - - (1,640,369)
Net Cash Provided from Operating Activities 7,386,601$ 11,183,381$ (734,920)$ (408,242)$ 17,426,820$ (1,101,541)$
See accompanying notes to financial statements.
- 17 -
CITY OF EVANSTON, ILLINOIS
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2017
Pension
Trust
Assets
Investments at fair value
Cash and cash equivalents 9,037,617$
U.S. Treasury obligations 13,809,363
U.S. agency obligations 13,920,414
Corporate bonds 27,519,726
Common stock 37,226,711
Equity mutual funds 98,771,047
Receivables
Accrued interest 385,903
Due from other governments 60,020
Other 25,633
Total Assets 200,756,434
Liabilities
Accounts payable 53,690
Total Liabilities 53,690
Net Position Restricted
For Pensions 200,702,744$
See accompanying notes to financial statements.
- 18 -
CITY OF EVANSTON, ILLINOIS
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended December 31, 2017
Additions
Contributions - employer 18,506,349$
Contributions - plan members 2,496,459
Total Contributions 21,002,808
Investment income
Net appreciation in fair value
of investments 18,720,633
Interest on investments 4,894,970
Less investment expenses (400,627)
Total Investment Income 23,214,976
Total Additions 44,217,784
Deductions
Administration 221,271
Benefit payments 19,951,713
Refunds of contributions 133,599
Total Deductions 20,306,583
Net Increase 23,911,201
Net Position Restricted
For Pensions
January 1 176,791,543
December 31 200,702,744$
See accompanying notes to financial statements.
- 19 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
Page(s)
Note 1 Summary of Significant Accounting Policies
A. Reporting Entity 22-23
B. Government-Wide and Fund Financial Statements 23
C. Fund Accounting 24
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 25-27
E. Cash and Cash Equivalents 27
F. Investments 27
G. Inventories and Prepaid Items 27
H. Capital Assets 28
I. Compensated Absences 28
J. Long-Term Obligations 28
K. Self-Insurance 29
L. Deferred Inflows of Resources 29
M. Property Taxes 29
N. Fund Equity 30
O. Interfund Transactions 30
P. Use of Estimates 31
Q. Conduit Debt 31
Note 2 Stewardship, Compliance, and Accountability
A Deficit Fund Equity 32
Note 3 Deposits With Financial Institutions and Investments
A. Types of Accounts and Securities 33
B. Pooling Cash and Investments 33
C. Types of Investments 34
D. Deposits 34
Note 4 Receivables
A. Summary of Receivables 35
B. Notes Receivable - Special Revenue Funds 35
Note 5 Capital Assets
A. Capital Asset Activity 36-38
B. Construction Commitments 38
- 20 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
Page(s)
(Continued from the previous page)
Note 6 Interfunds
A. Interfund Accounts 39
B. Interfund Advances 40
C. Interfund Transfers 41-44
Note 7 Operating Leases 45
Note 8 Long-Term Debt
A. Changes in Long-Term Debt 46-47
B. General Obligation Bonds Payable 48
C. Notes Payable - IEPA Loans 49
D. Loan with First Bank and Trust, Evanston 49
E. Postemployment Benefits other than Pensions (Defined Benefit Plan)49-51
Note 9 Fund Equity
A. Restricted Net Position - Fiduciary Funds 52
B. Assigned Fund Balances 52
Note 10 Individual Fund Activities
A. General Obligation Debt Service Fund 53
B. Water Fund 53
C. Special Service District No. 4 53
Note 11 Risk Management - Claims and Judgements 54
Note 12 Contingencies 55
Note 13 Joint Ventures
A. Solid Waste Agency of Northern Cook County 55-56
Note 14 Employee Retirement Systems
A. Plan Descriptions 57-72
Note 15 Pension Trust Funds
A. Schedule of Net Position 73
B. Changes in Plan Net Position 74
- 21 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
Page(s)
(Continued from the previous page)
Note 16 Evanston Library Component Unit
A. Types of Accounts and Securities 75
B. Reconciliation of Cash and Investments 76
C. Summary Receivables 76
D. Capital Assets Activity 76
E. Long-Term Debt 77
- 22 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant of the City's and the Library's accounting policies are described below.
A.Reporting Entity
Blended Component Unit:
The Town of the City of Evanston,Illinois (the Township)has been previously presented as a separate legal entity which
administers General Assistance,a public welfare program assigned by Illinois law to townships.Eligible clients received
General Assistance for food,shelter,and medical needs.Through the town fund levy,the Township also supported a
number of community action programs,which provided direct services to welfare recipients.The Township was governed
by a Township Board of Trustees and provided services within the same geographic boundaries of the City.The
Township Board of Trustees were the same individuals as the City Council.The Township board levied taxes and was
responsible for adopting the Township budget and approving payment of bills.On April 30,2014,the Township was
discontinued and dissolved following the March 18,2014 general election vote taken by the registered voters of the
Township.Pursuant to 60 ILCS 1/27-15 and 1/27-20,effective 12:00 am May 1,2014,the City assumed all rights,
powers,assets,property,obligations,and duties of the Township,including the responsibility of providing the services
that were previously provided by the Township.Beginning May 1,2014,the functions of the Township are reported
along with the City.
The financial statements of the City of Evanston,Illinois (the City)and Evanston Public Library (the Library or EPL)
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.
This report includes all of the funds of the City and the Library.The reporting entity for the City consists of the primary
government and its component units.Component units are legally separate organizations for which the primary
government is financially accountable or other organizations for which the nature and significance of their relationship
with the primary government are such that their exclusion would cause the reporting entity's financial statements to be
misleading.The primary government is financially accountable if (1)it appoints a voting majority of the organization's
governing body and it is able to impose its will on that organization,(2)it appoints a voting majority of the organization's
governing body and there is a potential for the organization to provide specific financial benefits to,or impose specific
financial burdens on,the primary government,(3)the organization is fiscally dependent on and there is a potential for the
organization to provide specific financial benefits to,or impose specific financial burdens on,the primary government.
Certain legally separate,tax exempt organizations should also be reported as a component unit if all of the following
criteria are met:(1)the economic resources received or held by the separate organization are entirely or almost entirely for
the direct benefit of the primary government,its component units,or its constituents;(2)the primary government or its
component units,is entitled to,or has the ability to access,a majority of the economic resources received or held by the
separate organization;and (3)the economic resources received or held by an individual organization that the primary
government,or its component units,is entitled to,or has the ability to otherwise access,are significant to the primary
government.
Component units are reported using one of two methods,discrete presentation or blending.Generally,component units
should be discretely presented in a separate column in the financial statements.A component unit should be reported as
part of the primary government using the blending method if it meets any one of the following criteria:(1)the primary
government and the component unit have substantively the same governing body and a financial benefit or burden
relationship exists;(2)the primary government and the component unit have substantively the same governing body and
management of the primary government has operational responsibility for the component unit;(3)the component unit
serves or benefits,exclusively or almost exclusively,the primary government rather than its citizens;or (4)the total debt
of the component unit will be paid entirely or almost entirely from resources of the primary government.
- 23 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A.Reporting Entity - Continued
Discrete Component Unit:
Joint Ventures:
B.Government-Wide and Fund Financial Statements
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.
The City participates in one joint venture,which is reported as non-equity governmental joint venture and is described in
Footnote 13.The joint venture is Solid Waste Agency of Northern Cook County (SWANCC).During 2015,the Evanston
Housing Corporation,a joint venture,ceased operations after a resolution to dissolve the corporation was approved by the
members.
The government-wide financial statements (i.e.,the statement of net position and the statement of activities)report
information on all of the nonfiduciary activities of the City and the Library.The effect of interfund activity has been
removed from these statements excluding interfund services provided.Governmental activities,which normally are
supported by taxes and intergovernmental revenues,are reported separately from business-type activities,which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset
by program revenues.Direct expenses are those that are clearly identifiable with a specific function or segment.Program
revenues include (1)charges to customers or applicants who purchase,use,or directly benefit from goods,services,or
privileges provided by a given function or segment and (2)grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment.Taxes and other items not properly included
among program revenues are reported instead as general revenues.
The EPL serves the community through three branches.The EPL partners with Northwestern University and other
agencies to implement digitally based science,technology,and math learning opportunities for teens.The EPL is
continually focused on expanding summer reading programs to serve the patrons of all ages.The Library has also
expanded community outreach by promoting library services at various local places and events.
The Library Director submits a proposed budget to the EPL Board of Trustees for the upcoming calendar year.This
budget is included in the budget documents submitted by the City Manager to the City Council.The Library budget is
legally enacted through passage of a resolution by the EPL Board of Trustees.
The EPL promotes the development of independent,self-confident,and literate citizens through the provision of open
access to cultural,intellectual,and informational resources for all ages.Beginning FY 2013,the Library financials are
shown separately as a discrete component unit of the City.However,the Library does not issue its own independent set of
financial statements.The Library Debt Service Fund was created as a part of FY2014 budget.The Library is governed by
the Library Board of Trustees. The board members are appointed by the Mayor of the City.
- 24 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C.Fund Accounting
Funds are classified into three categories:governmental,proprietary,and fiduciary.Each category,in turn,is divided into
separate "fund types."
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.
Governmental funds are used to account for all or most of the City's general activities,including the collection and
disbursement of restricted or committed monies (special revenue funds),the funds committed,restricted,or assigned for
the acquisition or construction of general capital assets (capital projects funds),and the funds restricted,committed,or
assigned for 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.
The City and the Library use 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.
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.
- 25 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
1.) Taxes 6.) Fines
Property *Traffic fines
Sales (home rule)
Utility 7.) Intergovernmental
Personal property Motor fuel tax allotments
Grants
2.) Licenses Supplemental Security income reimbursements
Income taxes
3.) Franchise fees Sales taxes
Use tax
4.) Charges for services
8.) Investment income
5.) Recycling program fees and sales
* Property taxes are defined as available if collected within at most 60 days after fiscal year end.
The City reports the following major governmental funds:
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 funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period.
The General Obligation Debt Fund is a debt service fund which accumulate monies for the principal and interest
payments on general obligation debt.
The General Fund is the City's primary operating fund.It accounts for all financial resources of the general
government, except those accounted for in another fund.
The City's and the Library's 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.A six-month availability period is used for revenue
recognition for all other governmental fund revenues.Expenditures generally are recorded when a liability is incurred,as
under accrual accounting.However,debt service expenditures,as well as expenditures related to compensated absences,
are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be
made early in the following year.
The following revenues associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period.
All other revenue items are considered to be measurable and available only when cash is received by the City and the
Library.
- 26 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
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 Library reports the Operating Fund, Endowment Fund, and Debt Service Fund.
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.
As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are charges between the City's enterprise funds and various other functions of the
government.Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
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.
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.
Internal Service Funds account for the fleet management and insurance services provided to other departments or
agencies of the government, or to other governments, on a cost reimbursement basis.
The 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 Solid Waste Fund accounts for the recycling,refuse,and yard waste removal services related fees and
expenses. Refuse and yard waste are contracted out, while recycling is handled by the City staff.
The Motor Vehicle Parking System accounts for the provision of the public and residential parking facility on
Church Street,Maple Avenue,and Sherman Avenue,as well as all the City's parking lots and meters.All activities
are accounted for including administration, operations, financing, and revenue collection.
Proprietary funds distinguish operating revenues and expenses from non-operating 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 non-operating revenues and expenses.
- 27 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
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
G.Inventories and Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements.In governmental funds,prepaid items are recorded based on
consumption method.
When both restricted and unrestricted resources are available for use,it is the City and Library’s policy to use restricted
resources first, then unrestricted resources as they are needed.
Cash and equivalents represent cash on hand,cash deposited in interest-bearing and non-interest-bearing checking
accounts,and investments in money markets,certificates of deposit,and treasury obligations with maturities of three
months or less at the date of acquisition, and cash deposited with Illinois Funds.
Investments with a maturity of less than one year when purchased,non-negotiable certificates of deposit,and other
nonparticipating investments are stated at cost or amortized cost.Investments with a maturity greater than one year when
purchased and all investments of the pension trust funds are stated at fair value.Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.
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.
The City and Library report unearned revenue and unavailable/deferred revenue on its financial statements.Unavailable
revenues arise when a potential revenue does not meet both the measurable and available criteria for recognition in the
current period,under the modified accrual basis of accounting.Deferred revenues arise when property tax levies are
intended to finance the next fiscal year.Unearned revenue arises when a revenue is measurable but not earned under the
accrual basis of accounting.Unearned revenues also arise when resources are received by the City and Library before it
has a legal claim to them or prior to the provision of services,as when grant monies are received prior to the issuance of
qualifying expenditures.In subsequent periods,when both revenue recognition criteria are met,or when the City and
Library have a legal claim to the resources,the liability and deferred inflows of resource for unearned and
unavailable/deferred revenue are removed from the financial statements and revenue is recognized.
- 28 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H.Capital Assets
Description Years Description Years
Land improvements 10-100 Buildings and improvements 10-50
Leasehold improvements 10-100 Office equipment and furniture 5-15
Plant 20-100 Machinery and equipment 3-15
Transmission and distribution Infrastructure 30-100
system 5-100 Library collections 7
Sewer system and Intangible assets 5-10
underground lines 75-100
Parking meters 15
I.Compensated Absences
J.Long-Term Obligations
It is the City's and the Library’s policy to permit employees to accumulate earned but unused vacation and sick pay
benefits.All payments due in the event of termination are accrued when incurred in the government-wide and proprietary
fund financial statements.The General Fund has been used in prior years to liquidate the liability for compensated
absences of governmental funds.
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.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'lives are
not capitalized.Infrastructure acquired prior to the February 28,2003 implementation of GASB Statement No.34 has
been reported.
In the fund financial statements,governmental fund types recognize bond premiums and discounts,as well as bond
issuance costs,during the current period.The face amount of debt issued is reported as other financing sources.Premiums
received on debt issuances are reported as other financing sources,while discounts on debt issuances are reported as other
financing uses.Issuance costs,whether or not withheld from the actual debt proceeds received,are reported as debt
service expenditures.
In the government-wide financial statements and proprietary fund types in the fund financial statements,long-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 position.Bond premiums and discounts,if material,are deferred and
amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
Property,plant,and equipment are depreciated,and intangible assets are amortized using the straight-line method over the
following estimated useful lives:
A capital asset is property,such as equipment,buildings,land,utility infrastructure,roads,bridges with a cost or value
equal to or greater than $20,000 (per asset)at the date of acquisition and an expected useful life of more than one year (12
months or longer).Acquisition of motor vehicles is an exception to the $20,000 threshold.Also additional cost of less
than $20,000 associated with an asset may be capitalized if the expense is necessary to put the asset in service or its
intended use;and/or if it extends the service life of the asset.Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
- 29 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K.Self-Insurance
L.Deferred Inflows/Outflows of Resources
M.Property Taxes
The property tax calendar for Cook County is as follows:
Description Date
Lien date January 1 of levy year
Levy date December of levy year
First installment due date
(55% of prior bill)March 1/April 1 of year following levy year
Second installment due date
(balance of total bill)September 1/October 1 of year following levy year
The City and the Library are 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 recognized as revenues in the year for which they are levied (i.e.,intended to finance).On this basis,
property tax revenue includes all cash distributions of property tax related to the 2016 tax levy received during the fiscal
period between January 1,2017 and December 31,2017.A 2%allowance for loss is reflected in the City and the Library
financial statements.
The 2017 tax levy collections are intended to finance the 2018 fiscal year and are not considered available for current
operations and are, therefore, shown as unavailable/deferred revenue.
In addition to assets,the statement of financial position will sometimes report a separate section for deferred
outflows of resources.This separate financial statement element,deferred outflows of resources,represents a
consumption of net assets that applies to a future period(s)and so will not be recognized as an outflow of
resources (expense/expenditure) until then.
In addition to liabilities,the statement of financial position will sometimes report a separate section for
deferred inflows of resources.This separate financial statement element,deferred inflows of resources,
represents an acquisition of net assets that applies to a future period(s)and so will not be recognized as an
inflow of resources (revenue) until that time.
Property taxes are collected by the Cook County Collector and are remitted periodically to all taxing bodies,including the
City and Library.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.
- 30 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
N. Fund Equity
O.Interfund Transactions
The City and the Library consider restricted amounts to be spent first when both restricted and unrestricted fund balance
is available unless there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring dollar
for dollar spending.Additionally,the City and the Library would first use committed,then assigned,and lastly
unassigned amounts of unrestricted fund balance when expenditures are made.
Governmental fund equity is classified as fund balance.In February 2009,GASB issued Statement No.54,Fund
Balance Reporting and Governmental Fund Type Definitions.This statement establishes fund balance classifications
based primarily on the extent to which the government is bound to honor constraints on the use of the resources reported
in each governmental fund as well as establishes additional notes disclosures regarding fund balance classification
policies and procedures.The City Council may,by an ordinance,establish,modify,or remove a fund balance
commitment.In accordance with GASB Statement No.54,the City and the Library classifies governmental fund balance
as follows:
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 transfers.
1.Nonspendable -Includes fund balance amounts that can not be spent either because they are not in spendable
form or because legal or contractual stipulations require them to be maintained intact.
2.Restricted -Consists of fund balances with constraints placed on their use either by (1)external groups such as
creditors,grantors,contributors,or laws or regulations of other governments or (2)law through constitutional provisions
or enabling legislation.
3.Committed -Includes fund balance amounts that are constrained for specific purposes that are internally imposed
by the government through formal action of the highest level of decision-making authority.Fund balance amounts are
committed through a formal action of the City.This formal action must occur prior to the end of the reporting period,but
the amount of commitment,which will be subject to constraints,may be determined in the subsequent period.Any
changes to the constraints imposed require the same formal action of the City that originally created the commitment.
Assignments may not create unassigned deficits in any fund.However,nonspendable,restricted,or committed fund
balance may create an unassigned deficit.Also,restricted,committed,and assigned balances themselves may not be
negative.
4.Assigned -Includes spendable fund balance amounts that are intended to be used for specific purposes that are
not considered restricted or committed.Fund balance may be assigned through the following:(1)Council may take
official action to assign amounts,(2)all remaining positive spendable amounts in governmental funds,other than the
General Fund, that are neither restricted nor committed. Assignments may take place after the end of the reporting period.
The City has established a policy requiring a minimum of 16.6%or two months of operating expenditures to be
maintained as a reserve. This is reported as unassigned fund balance.
5.Unassigned -Includes residual positive fund balance within the General Fund which has not been classified
within the other above mentioned categories.Unassigned fund balance may also include negative balances for any
governmental fund if expenditures exceeds amounts restricted, committed, or assigned for those purposes.
- 31 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P.Use of Estimates
Q.Conduit Debt
The City approved the issuance of $13,590,000 Series 2011 Revenue Bonds during the fiscal period ended December 31,
2011 to provide financial assistance to Roycemore School,deemed to be in public interest.The use of proceeds includes
the property purchase and renovation of 1201 Davis,the new location of the school,and payment of miscellaneous costs.
The bonds are secured by the property or mortgages financed and are payable from the moneys,securities,and other
revenues pledged under the indenture by the school.The City is not obligated in any manner for the repayment of bonds.
Accordingly,the bonds outstanding are not reported as a liability in these financial statements.As of December 31,2017,
outstanding bond balance was $12,555,000.
The City approved the issuance of $5,000,000 Series 2010 Revenue Bonds during the fiscal year 2010-2011 to provide
financial assistance to Chiravalle Montessori School,deemed to be in public interest.The use of proceeds includes the
property purchase from the City,improvement to the existing building,refinancing existing debt,and payment of
miscellaneous costs.The bonds are secured by the property or mortgages financed and are payable from the monies,
securities,and other revenues pledged under the indenture by the school.The City is not obligated in any manner for the
repayment of bonds.Accordingly,the bonds outstanding are not reported as a liability in these financial statements.As of
December 31, 2017, outstanding bond balance was $4,190,000.
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.
- 32 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.Deficit Fund Equity
The Insurance Fund,an internal service fund,had a net deficit of $4,338,505 as of December 31,2017.The City
plans to use current resources to pay for future liabilities.
The Solid Waste Fund had a net deficit of $1,061,966 as of December 31,2017.The City plans to use current
resources to pay for future liabilities.
The Special Service District No.4 had a net deficit of $198,794 as of December 31,2017.The City plans to use
current resources to pay for future liabilities.
The Dempster-Dodge Tax Increment District Fund had a net deficit of $6,009 as of December 31,2017.The City
plans to use current resources to pay for future liabilities.
- 33 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS
A.Types of Accounts and Securities
B.Pooling of Cash and Investments
The City and pension funds categorize the fair value measurements within the fair value hierarchy established by generally
accepted accounting principles.The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets;Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs.
Illinois Statutes and the City's investment policies authorize the City to invest in obligations of the U.S.Treasury,in
Government Sponsored Enterprises (GSE)such as Federal Home Loan Mortgage Corporation (FHLMC),Federal Home Loan
Bank (FHLB),and Fannie Mae (FNMA);bankers acceptances as well as commercial paper rated only in the highest tier;
repurchase agreements of the highest grade;collateralized certificates of deposit issued by FDIC insured financial institutions,
money market mutual funds with portfolios limited to securities guaranteed by the United States Government,the Illinois
Metropolitan Investment Fund (IMET), and Illinois Funds.
It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the following
order:safety of principal,liquidity,and rate of return.The City also seeks to maintain diversification of investments to avoid
overconcentration of any one specific issuer or business sector.To mitigate interest rate risk,the City tries to structure the
investment portfolio to meet daily cash flow needs so as to avoid needing to sell securities on the open market.The City seeks
to attain market rates of return consistent with constraints imposed by safety and cash flow needs.The City invests to conform
to all state and local statutes governing the investment of public funds. More detail is available in the City's investment policy.
The Firefighters'and Police Pension Funds are set up for the exclusive purpose of providing retirement and other benefits to
plan participants and beneficiaries.All investments are governed and authorized by the respective Fire and Police Pension
Boards.The investment objectives and parameters mirror those listed above for the City.However,unlike the City's public
funds,the Firefighters'and Police Pension Funds may invest in various equity accounts up to a limit of 65%of the aggregate
value of each respective fund's assets.The pension funds invest to conform to all state and local statutes governing pension
funds. Additional detail is available in each pension fund's investment policies.
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.
Illinois Funds, created by the Illinois State Legislature under the control of the State Comptroller, operates as qualified external
investment pools in accordance with the criteria established in GASB Statement No. 79, Certain External Investment Pools
and Pool Participants . Investment in Illinois Funds is reported at $1 per share value. Illinois Funds does not have any
limitations or restrictions on participant withdrawals. The Illinois Funds Treasurer's Office issues a separate financial report
for the Illinois Funds which may be obtained by contacting the Administrative Office at Illinois Business Center, 400 West
Monroe Street, Suite 401, Springfield, Illinois 62704.
IMET is a not-for-profit investment trust formed pursuant to the Illinois Municipal code and managed by a Board of Trustees
elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in
IMET are valued at IMET's share price, the price for which the investment could be sold.
- 34 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued
C.Types of Investments
Illinois Funds $ 4,462,472
Treasury Bill 1,999,458
CD 6,703,257
SDA 16,754,431
IMET money market 479,819
$ 30,399,437
D.Deposits
Deposits consist of deposits in interest-bearing and non-interest-bearing checking accounts.At December 31,2017,the
carrying amount of the City's deposits,including cash on hand of $14,424 was $20,731,930.The financial institutions'
balances totaled $22,172,977.
Interest Rate Risk.The City's investment policy does not limit investment maturities as a means of managing its exposure to
fair value losses arising from increasing interest rates.The objective is to maintain a core portfolio with maturities primarily in
the three month to three years range.
Credit Risk.State law limits investments in commercial paper,corporate bonds,and mutual bonds funds to the top two
ratings issued by nationally recognized statistical rating organizations.The City's investment policy does not impose further
limits on investment choices.The Police and Firefighters'Pension Funds have investments in corporate bonds with S&P
ratings ranging from BBB-to AAA.Illinois Funds and money markets were rated AAA by Standard &Poor's.IMET
exclusively invests in AAA Standard &Poor's securities,such as treasury and agency obligations.IMET's Convenience Fund
collateralizes all of its deposits 110%.The investments in the securities of the U.S.government agencies were all rated AAA
or Aaa by the Standard &Poor’s and by Moody’s Investor’s Services.The following investments of the City in Illinois
Funds, PMA, and IMET are valued at the funds' share price, the price for which the investments could be sold.
Custodial Credit Risk.For an investment,custodial credit risk is the risk that,in the event of the failure of the counterparty,
the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside
party. All of the City's investments were insured, registered, or held by the counterparty’s trust department in the City’s name.
On September 29,2014,IMET was informed of defaults on certain loans believed to be guaranteed in its Convenience Fund
caused by fraud on the part of First Farmer's Financial (FFF),a USDA approved lender.This resulted in a decrease in the
value of the City's IMET investment in the amount of $552,862 and leaving an impairment on the remaining balance of
$636,088. The City believes that it will recover the remaining value of the investment.
Concentration of Credit Risk.It is the policy of the City to diversify its investment portfolio.Investments shall be diversified
to eliminate the risk of loss resulting from overconcentration in a security,maturity,issuer,or class of securities.At
December 31, 2017, the City had 83.74% of investments held at PMA.
Custodial Credit Risk.For a deposit,custodial credit risk is the risk that,in the event of the failure of the counterparty,the
City will not be able to recover the value of its deposit or collateral securities that are in the possession of an outside party.All
of the City's deposits were insured, collateralized, or held by the counterparty's trust department in the City's name.
The City has the following recurring fair value measurements as of December 31,2017.The investments in U.S.agency
obligations,corporate fixed income and corporate common stocks are valued using quoted matrix pricing models (Level 2
inputs).Mutual funds are measured based on the net asset value of the shares in the fund,which is based on the fair value of
the underlying investments in the mutual fund (Level 3 input).
Total
- 35 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 4.RECEIVABLES
A.Summary of Receivables
General
Governmental Business-Type
Activities Activities Total
Receivables (net, where applicable,
of allowances for uncollectibles):
Athletic tax 728,698$ -$ 728,698$
Wheel tax 444,065 - 444,065
Hotel tax 310,886 - 310,886
Liquor tax 231,326 - 231,326
Rooming tax 78,136 - 78,136
Youth hockey association 23,920 - 23,920
Accrued interest 7,840 - 7,840
Other miscellaneous 65,868 44,211 110,079
Net Total Receivables 1,890,739$ 44,211$ 1,934,950$
B.Notes Receivable - Special Revenue Funds
Loan Interest Loans Loan Loan
Type Rates Beginning Made Repayments Adjustments Ending
Title Transfer 0% - 8%2,390,602$ 38,164$ 60,825$ (7,980)$ 2,359,961$
Amortizing 0% - 8% 1,207,139 24,075 78,544 (9,462) 1,143,208
Forgivable 0% - 8% 4,423,614 315,000 - (28,363) 4,710,251
Allowance (78,000)- - - (78,000)
Total Loans 7,943,355$ 377,239$ 139,369$ (45,805)$ 8,135,420$
Other receivables as of December 31,2017 for the government’s individual major funds,nonmajor,internal service funds and fiduciary funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
The City provides resources to city residents for the sale and rehabilitation of single-family and multi-family housing.Initial funding for these
resources was from Community Development Block Grant (CDBG)and Housing and Urban Development (HUD)Funds.Three types of loans are
made:(1)title transfer loans which are due in full when the housing unit is sold,(2)amortizing loans which are due in monthly installments over
varying lengths of time,and (3)forgivable loans which are forgiven over varying lengths of time based on occupancy requirements.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 $78,000 exists in the Special Revenue Funds due to doubtful accounts.Loan activity for the current period is
summarized as follows:
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to
liquidate liabilities of the current period.Governmental funds also defer revenue recognition in connection with resources that have been received,
but not yet earned.
- 36 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 5. CAPITAL ASSETS
A. Capital Asset Activity
Capital asset activity for the fiscal year ended December 31, 2017 was as follows:
Beginning Additions Deletions Transfers Ending
Governmental Activities:
Capital assets, not being depreciated:
Land 7,193,044$ -$ -$ -$ 7,193,044$
Right of way 18,695,896 - - - 18,695,896
Artwork 155,000 - - - 155,000
Construction in progress - 11,192,371 - - 11,192,371
Total Capital Assets, not being Depreciated 26,043,940 11,192,371 - - 37,236,311
Capital Assets, being Depreciated/Amortized:
Buildings and improvements 82,177,124 1,185,474 - - 83,362,598
Office equipment and furniture 5,856,943 - - - 5,856,943
Intangible assets 7,612,047 - - - 7,612,047
Machinery and equipment 26,766,465 1,479,407 1,127,304 - 27,118,568
Infrastructure 180,315,853 3,446,339 - - 183,762,192
Capitalized leases 502,532 - - - 502,532
Total Capital Assets being Depreciated/Amortized 303,230,964 6,111,220 1,127,304 - 308,214,880
Less Accumulated Depreciation/Amortization for:
Buildings and improvements 36,338,486 1,743,155 - - 38,081,641
Office equipment and furniture 3,789,272 312,468 - - 4,101,740
Intangible assets 6,177,417 239,350 - - 6,416,767
Machinery and equipment 17,928,254 1,909,393 1,099,373 - 18,738,274
Infrastructure 96,887,499 7,020,432 - - 103,907,931
Capitalized leases 475,177 3,908 - - 479,085
Total Accumulated Depreciation/Amortization 161,596,105 11,228,706 1,099,373 - 171,725,438
Total Capital Assets being Depreciated/Amortized, Net 141,634,859 (5,117,486) 27,931 - 136,489,442
Governmental Activities Capital Assets, Net 167,678,799$ 6,074,885$ 27,931$ -$ 173,725,753$
- 37 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 5. CAPITAL ASSETS - Continued
A. Capital Asset Activity - Continued
Beginning Additions Deletions Transfers Ending
Business-Type activities:
Capital Assets, not being Depreciated:
Land 4,644,510$ -$ -$ -$ 4,644,510$
Construction in progress 3,880,612 983,430 3,205,641 - 1,658,401
Artwork 359,752 - - - 359,752
Total Capital Assets, not being Depreciated 8,884,874 983,430 3,205,641 - 6,662,663
Capital Assets, being Depreciated/Amortized:
Land improvements 4,911,144 3,094,047 221,691 - 7,783,500
Buildings and improvements 77,901,736 500,000 250,000 - 78,151,736
Leasehold improvements 304,052 468,079 - - 772,131
Plant 44,707,363 1,812,748 51,377 - 46,468,734
Transmission and distribution system 65,024,617 2,159,056 431,374 - 66,752,299
Sewer system and underground lines 252,047,218 1,871,985 - - 253,919,203
Intangible assets 1,260,258 - - - 1,260,258
Equipment 2,895,833 1,475,274 223,311 - 4,147,796
Parking meters 1,859,028 - - - 1,859,028
Total Capital Assets being Depreciated/Amortized 450,304,017 11,381,189 1,177,753 - 461,114,685
Less Accumulated Depreciation/Amortization for:
Land improvements 1,953,386 238,491 - - 2,191,877
Buildings and improvements 26,993,282 1,967,920 - - 28,961,202
Leasehold improvements 289,205 16,427 - - 305,632
Plant 16,930,397 1,394,919 26,986 - 18,298,330
Transmission and distribution system 8,215,441 1,066,678 431,374 - 8,850,745
Sewer system and underground lines 56,381,462 3,425,149 - - 59,806,611
Intangible assets 569,368 104,001 - - 673,369
Equipment 2,319,831 216,863 131,342 - 2,405,352
Parking meters 943,728 132,390 - - 1,076,118
Total Accumulated Depreciation/Amortization 114,216,792 8,562,838 589,702 - 122,569,236
Total Capital Assets being Depreciated/Amortized, Net 336,087,225 2,818,351 588,051 - 338,545,449
Governmental Activities Capital Assets, Net 344,972,099$ 3,801,781$ 3,793,692$ -$ 345,208,112$
- 38 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 5. 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 534,298$
Public safety 625,697
Public works 6,667,668
Housing and economic development 9,303
Recreation and cultural opportunities 1,610,911
Internal service funds 1,780,829
Total Depreciation Expense - Governmental Activities 11,228,706$
Business-Type Activities:
Water 2,470,280$
Sewer 3,530,787
Motor vehicle parking 2,561,771
Total Depreciation Expense - Business-Type Activities 8,562,838$
B.Construction Commitments
Capital Improvement Fund 14,994,686$
Water Fund 1,174,470
Sewer Fund 324,371
Total Construction Commitments 16,493,527$
The value of construction contracts signed, where the work has not yet been performed at December 31, 2017 is as follows:
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 6.INTERFUNDS
A. Interfund Accounts
At December 31, 2017, interfund receivables and payables consist of the following:
Due Due
Funds From To
General Fund 3,846,698$ 83,987$
Debt Service Fund - 2,047,040
Water Fund - 325,000
Sewer Fund 1,127,665 45,543
Solid Waste Fund - 1,427,665
Motor Vehicle Parking System Fund 51,146 -
Nonmajor Governmental Funds 1,704,988 1,951,630
Fiduciary 60,020 -
Internal Service Funds 322,274 1,244,720
Total 7,112,791$ 7,125,585$
Due Due
Funds From To
Library
Library Funds
General 12,794$ -$
Total Library Funds 12,794 -
Total Library 12,794$ -$
The outstanding balances between funds result mainly from the time lag between the dates that (1)interfund goods
and services are provided or reimbursable expenditures occur,(2)transactions are recorded in the accounting
system, and (3) payments between funds are made.
- 40 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 6.INTERFUNDS - Continued
B. Interfund Advances
At December 31, 2017, interfund advances consist of the following:
Advances Advances
Funds To From
Governmental Funds
General Fund
Motor Vehicle Parking System 476,800$ -$
Fire Pension 10,000 -
Total General Fund 486,800 -
Enterprise Funds
Motor Vehicle Parking System
General Fund - 476,800
Total Motor Vehicle Parking System - 476,800
Fiduciary Funds
Fire Pension - 10,000
Total Fiduciary Funds - 10,000
Grand Total 486,800$ 486,800$
- 41 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers
At December 31, 2017, transfers in (out) consist of the following:
Transfers Transfers
Funds In Out
Governmental Funds
General Fund
Emergency Telephone System 60,000$ -$
Washington National TIF Debt Service 500,000 -
Howard Ridge TIF 60,000 -
Capital Improvement Fund 500,000 -
Water 3,894,560 -
Sewer 480,167 -
Motor Vehicle Parking System 1,530,000 -
Solid Waste - 755,967
Motor Fuel Tax 957,990 -
West Evanston TIF 30,000 -
General Obligation Debt Service Fund - 2,055,959
Good Neighbor 500,000 -
Health and Human Services 859,153 859,153
Economic Development 2,996,226 -
Special Service Area #6 78,000 -
Total General Fund 12,446,096 3,671,079
General Obligation Debt Service Fund
General 2,055,959 -
Insurance 9,632 -
Fleet 27,833 -
Sewer 469,296 -
Community Development Block Grant 6,594 -
Special Assessment 263,427 -
Neighborhood Stabilization Program 4,518 -
Emergency Telephone System 12,977 -
Howard Hartrey TIF 45,325 -
Total General Obligation Debt Service Fund 2,895,561 -
Transfers are used to (1)move revenues from the fund with collection authorization to the Debt Service Fund as debt
service principal and interest payments become due,(2)move restricted amounts from borrowings to the Debt Service
Fund to establish mandatory reserve accounts,(3)move restricted General Fund revenues to finance various programs that
the government must account for in other funds in accordance with budgetary authorization,including amounts provided
as subsidies or matching funds for various grant programs.
- 42 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Nonmajor Governmental Funds
Economic Development
General -$ 2,996,226$
Total Economic Development - 2,996,226
Howard Ridge TIF
General - 60,000
Total Howard Hartrey TIF - 60,000
Howard Hartrey TIF
General Obligation Debt Service Fund - 45,325
Total Howard Hartrey TIF - 45,325
Washington National TIF Debt Service
General - 500,000
Capital Improvements 936,689 -
Motor Vehicle Parking System - 4,120,636
Total Washington National TIF Debt Service 936,689 4,620,636
West Evanston Tax Increment District
General - 30,000
Total West Evanston Tax Increment District - 30,000
Capital Improvements
Good Neighbor Fund - 500,000
Washington National TIF Debt Service - 936,689
Crown Capital Fund - 649,512
General - 500,000
Total Capital Improvement - 2,586,201
Special Assessment
General Obligation Debt Service - 263,427
Total Special Assessment - 263,427
Crown Capital Fund
Capital Improvements 649,512 -
Total Crown Capital Fund 649,512 -
Special Service Area #6
General - 78,000
Total Special Service Area #6 - 78,000
Neighborhood Stabilization Program 2
General Obligation Debt Service - 4,518
Total Neighborhood Stabilization Program 2 - 4,518
Emergency Telephone System
General Obligation Debt Service - 12,977
General - 60,000
Total Emergency Telephone System - 72,977
- 43 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Nonmajor Governmental Funds - Continued
Motor Fuel Tax
General -$ 957,990$
Total Motor Fuel Tax - 957,990
Community Development Block Grant
General Obligation Debt Service - 6,594
Total Community Development Block Grant - 6,594
Good Neighbor
Capital Improvements 500,000 -
General - 500,000
Total Good Neighbor 500,000 500,000
Total Nonmajor Governmental Funds 2,086,201 12,221,894
Total Governmental Funds 17,427,858 15,892,973
Enterprise Funds
Water
Insurance Fund - 2,300,000
General - 3,894,560
Total Water - 6,194,560
Sewer
General - 480,167
General Obligation Debt Service Fund - 469,296
Total Sewer - 949,463
Motor Vehicle Parking System
General - 1,530,000
Washington National TIF Debt Service 4,120,636 -
Total Motor Vehicle Parking System 4,120,636 1,530,000
Solid Waste
General 755,967 -
Total Enterprise Funds 4,876,603 8,674,023
- 44 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Internal Service Funds
Fleet Fund
Debt Service Fund -$ 27,833$
Total Fleet Fund - 27,833
Insurance Fund
Water 2,300,000 -
General Obligation Debt Service Fund - 9,632
Total Insurance Fund 2,300,000 9,632
Total Internal Service Funds 2,300,000 37,465
Total Primary Government 24,604,461 24,604,461
Total 24,604,461$ 24,604,461$
Note - Transfers between the primary government and component unit have been reclassified on the statement of activities.
- 45 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 7. OPERATING LEASES
Number of Monthly Annual Lease
Leasing Co.Expiration Machines Payment Payment Type of Machines
Mail Finance 4/30/2018 1 375 4,500$ Postage Machine
Minimum annual lease payments are as follows:
Year ending 12/31/2018 1,500$
Total 1,500$
The City entered into a lease agreement for a postage machine with Neopost during the 2012 fiscal year.The machine is
located on the first floor in the Civic Center. The lease term is 63 months with the first payment due in February 2013.
- 46 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 8.LONG-TERM DEBT
A. Changes in Long-Term Debt
Final
Interest Maturity Balance Balance Due Within
Rate Date 12/31/2016 Issued Refunded Payments 12/31/2017 One Year
G.O. Debt Governmental Activities
Series 2007 4.00%-5.00%12/1/2016 9,671,624$ -$ 8,789,464$ 882,160$ -$ -$
Series 2008A 3.00%-5.00%12/1/2021 1,810,000 - - 310,000 1,500,000 315,000
Series 2008C 3.00%-5.00%12/1/2028 6,926,460 - - 442,200 6,484,260 458,280
Series 2010A 2.00%-3.625%12/1/2029 5,040,000 - - 320,000 4,720,000 325,000
Series 2010B 1.00%-3.30%12/1/2019 2,656,253 - - 826,946 1,829,307 881,241
Series 2011A 2.00%-4.50%12/1/2031 10,549,988 - - 563,230 9,986,758 573,825
Series 2012A 2.00%-3.25%12/1/2032 7,290,000 - - 660,000 6,630,000 670,000
Series 2013A 2.00%-4.75%12/1/2033 9,640,000 - - 465,000 9,175,000 480,000
Series 2013B 2.00%-3.00%12/1/2025 15,323,453 - - 2,589,327 12,734,126 2,037,279
Series 2014 1.25%-5.00%12/1/2034 8,700,000 - - 375,000 8,325,000 380,000
Series 2015A 2.00%-4.00%12/1/2035 7,340,000 - - 285,000 7,055,000 290,000
Series 2015B 2.00%-3.00%12/1/2022 10,075,000 - - 1,750,000 8,325,000 1,550,000
Series 2016A 2.00%-4.00%12/1/2036 9,450,000 - - 340,000 9,110,000 390,000
Series 2016B 2.00%-3.00%12/1/2026 7,635,000 - - 655,000 6,980,000 705,000
Series 2017A 3.00%-4.00%12/1/2037 - 11,630,000 - - 11,630,000 385,000
Series 2017B 4.00%-5.00%12/1/2027 - 8,481,464 - - 8,481,464 905,609
Series 2017C 2.05%-4.00%12/1/2035 - 5,000,000 - - 5,000,000 -
Subtotal Governmental Activities 112,107,778 25,111,464 8,789,464.00 10,463,863 117,965,915 10,346,234
Bonds premium 3,983,384 927,074 - 725,211 4,185,247 -
OPEB liability - City 2,348,788 412,224 - - 2,761,012 -
OPEB liability - Internal Service Funds 81,742 9,379 - - 91,121 -
Net pension liability - IMRF 14,555,442 - - 1,941,282 12,614,160 -
Net pension liability - Police Pension 112,304,807 - - 1,310,735 110,994,072 -
Net pension liability - Firefighters' Pension 92,543,567 1,800,293 - - 94,343,860 -
Compensated absences payable - City 10,144,477 4,300,971 - 4,057,791 10,387,657 4,057,791
Compensated absences payable - Internal Service Funds 132,898 28,337 - 26,580 134,655 26,580
First Bank loan 5,128,812 520,000 5,000,000 - 648,812 648,812
Claims payable 5,927,870 - - 1,640,370 4,287,500 1,477,000
Subtotal Other Governmental Activities Liabilities 247,151,787 7,998,278 5,000,000.00 9,701,969 240,448,096 6,210,183
Total Governmental Activities Debt and Liabilities 359,259,565$ 33,109,742$ 13,789,464.00$ 20,165,832$ 358,414,011$ 16,556,417$
G.O. Debt Business-Type Activities
Series 2007 Sewer 4.00%-5.00%12/1/2016 235,000$ -$ -$ 235,000$ -$ -$
Series 2007 Parking 4.00%-5.00%12/1/2016 170,000 - - 170,000 - -
Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 4,245,000 - - 2,600,000 1,645,000 1,645,000
Series 2008C Sewer 3.00%-5.00%12/1/2028 1,688,540 - - 107,800 1,580,740 111,720
Series 2010B W/S/San/Pkg 1.00%-3.30%12/1/2019 523,747 - - 163,053 360,694 173,759
Series 2011A W/S 2.00%-4.50%12/1/2031 3,235,009 - - 171,771 3,063,238 176,175
Series 2012A 2.00%-3.25%12/1/2032 3,775,000 - - 185,000 3,590,000 195,000
Series 2013A - Water 2.00%-4.75%12/1/2033 1,790,000 - - 80,000 1,710,000 80,000
Series 2013B 2.00%-3.00%12/1/2025 2,784,782 - - 1,249,501 1,535,281 1,535,281
Series 2014 1.25%-5.00%12/1/2034 2,530,000 - - 100,000 2,430,000 100,000
Series 2015A 2.00%-4.00%12/1/2035 5,310,000 - - 195,000 5,115,000 200,000
Series 2016A 2.00%-4.00%12/1/2036 3,615,000 - - 120,000 3,495,000 140,000
Series 2017A 3.00%-4.00%12/1/2037 - 980,000 - - 980,000 35,000
Subtotal Business-Type Activities 29,902,078 980,000 - 5,377,125 25,504,953 4,391,935
IEPA loans 2.535%-3.59%Various 45,256,237 1,736,056 - 6,664,185 40,328,108 6,302,480
Bonds premium 1,024,272 39,369 - 92,544 971,097 -
Compensated absences payable - City 917,513 205,705 - 183,503 939,715 187,941
Net pension liability - IMRF 3,125,915 - - 259,895 2,866,020 -
OPEB liability 404,774 50,136 - - 454,910 -
Subtotal Other Business-Type Activities Liabilities 5,472,474 295,210 - 535,942 5,231,742 187,941
Total Business-Type Activities Debt and Liabilities 80,630,789$ 3,011,266$ -$ 12,577,252$ 71,064,803$ 10,882,356$
Total Governmental and Business-Type Activities Debt and Liabilities 439,890,354$ 36,121,008$ 13,789,464.00$ 32,743,084$ 429,478,814$ 27,438,773$
Note:Sewer Fund,Water Fund,Solid Waste Fund,Parking Fund,and General Fund have been used to liquidate IMRF pension liability.General Fund,Fleet Fund,Water Fund,
Parking Fund, Solid Waste Fund, and Sewer Fund have been used to liquidate other postemployment benefit obligations.
- 47 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 8. LONG-TERM DEBT - Continued
A. Changes in Long-Term Debt - Continued
Business-Type Activities - IEPA Loans
IEPA loans payable consist of the following:
Date of Final Interest Original
Issue Maturity Rates Indebtedness Balance
Various Various Various 113,793,446$ 40,328,108$
Total Business-Type Activities - IEPA Loan Debt 40,328,108$
Business-type activities IEPA loans are payable from revenues derived from Sewer and Water service fees.The City has
pledged future revenues,net of operating expenses,to repay principal totaling $113,793,446 in IEPA loans issued in 1994
through 2017. Proceeds from the loans provided financing for the Long-Term Sewer and Water Improvement Program. The
IEPA loans,payable from operating revenues,are payable through 2037.Annual principal and interest on the loans are
expected to require $7,237,634 of net revenues for the fiscal year 2018.The total principal and interest remaining to be paid
on the loans is $44,931,749.Principal and interest paid for the current period and total customer net revenues were
$7,737,646 and $11,541,223, respectively.
- 48 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 8. LONG-TERM DEBT - Continued
B.General Obligation Bonds Payable
Year Ending Governmental Activities Business-Type Activities
December 31, Principal Interest Principal Interest
2018 10,346,234$ 4,012,687$ 4,391,935$ 908,006$
2019 10,228,306 3,635,184 1,259,134 755,043
2020 9,820,126 3,334,080 1,112,483 711,731
2021 10,108,018 3,041,714 1,152,768 671,353
2022-2026 39,806,278 10,663,983 6,445,386 2,658,203
2027-2031 23,861,955 4,693,761 7,158,247 1,366,612
2032-2036 13,795,000 1,234,850 3,985,000 315,455
Total 117,965,916$ 30,616,258$ 25,504,953$ 7,386,403$
Current Refunding
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities.
General obligation bonds have been issued for both governmental and business-type activities.
General obligation bonds are direct obligations and pledge the full faith and credit of the City.These bonds generally are
issued as 20-year serial bonds with equal amounts of principal maturing each year.
In September 2017,the City issued Series 2017A General Obligation Bonds for a total of $13,990,000 with interest rates
ranging from 3.0%to 4.0%.The bonds were issued to provide financing for certain public improvement projects for both
governmental and business-type activities.
Also in September 2017,the City issued Series 2017B General Obligation Refunding Bonds for a total of $9,225,000
with interest rates ranging from 4.0%to 5.0%.The bonds were issued to currently refund $10,960,000 of the currently
outstanding General Obligation Bonds, Series 2007.
The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds.
On September 21,2017,the City issued $9,225,000 in General Obligation Refunding Bonds,Series 2017B,due in annual
installments of $830,000 to $1,030,000 plus interest at 2%to 4%through December 1,2027 to advance refund a portion
of the General Obligation Bonds,Series 2007 in the amount of $10,960,000.The net proceeds of $9,524,000 (after
payment of $138,074 in underwriting fees,insurance,and other issuance costs)were used to call the 2007 bonds.This
transition resulted in a reduction of total debt service payments decrease in future debt payments of $1,307,356,which
results in an economic gain (difference between present value of the debt service payments of the refunded and refunding
bonds) of $1,178,905.
In September 2017,the City issued Series 2017C General Obligation Bonds for a total of $5,000,000 with interest rates
ranging from 2.05%to 4.00%.The bonds were issued to provide financing for certain public improvement projects for
governmental activities.
- 49 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 8. LONG-TERM DEBT - Continued
C.Notes Payable - IEPA Loans
Notes payable - IEPA debt service requirements to maturity are as follows:
For the Fiscal
Year Ending Principal Interest
2018 6,302,480$ 935,155$
2019 5,348,934 777,279
2020 5,000,126 646,925
2021 4,506,244 520,872
2022 3,234,418 421,085
2023-2027 12,254,759 1,037,819
2028-2032 2,619,596 230,132
2033-2037 1,061,550 34,376
Total 40,328,108$ 4,603,643$
D.Loan with First Bank and Trust, Evanston
E.Postemployment Benefits other than Pensions (Defined Benefit Plan)
The City and the Library administer a single-employer defined benefit health care plan which provides coverage to active
employees and retired members. Benefit provisions are established through collective bargaining agreements and state
that eligible retires and their spouses at established contribution rates.
During June 2017,the City drew $520,000 on a loan with First Bank and Trust,Evanston.The City paid off $5 million
in October 2017 leaving a balance of $648,812 at the end of 2017.
Business-Type Activities
As of December 31,2017,the City currently has 22 outstanding loans from the IEPA.The City will repay the loans solely
from revenues derived from the sewer and water 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.
Contribution requirements are established through Illinois State laws.The City and the Library implicitly contributes the
difference between retiree's contributions and unblended rates.Retirees pay 100%of the blended premiums to cover
themselves and their covered dependents ranging from $493 for single coverage to $1,891 for family coverage.The City
pays 100%of health care premiums for police officers and firefighters,their dependents and their surviving spouses and
dependent children if they were injured or killed in the line of duty during an emergency,ranging from $493 for single
coverage to $1,891 for family coverage.For the year ended December 31,2017,the City and Library's estimated
contribution to the plan is $832,345.The City's and the Library's annual other postemployment benefit (OPEB)cost
(expense)is calculated based on the annual required contribution of the employer (ARC),an amount actuarially
determined in accordance with parameters of GASB Statement No.45.The ARC represents a level of funding that,if
paid on an ongoing basis,is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed 30 years.
The City's and the Library's group health insurance plan provides coverage to active employees and retirees (or other
qualified terminated employees)at blended premium rates.This results in an other postemployment benefit (OPEB)for
the retirees,commonly referred to as an implicit rate subsidy.The group health insurance plan does not issue a publicly
available financial report.
- 50 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 8. LONG-TERM DEBT - Continued
E.Postemployment Benefits other than Pensions (Defined Benefit Plan) - Continued
Membership
Retirees and beneficiaries current receiving benefits 87
Terminated employees entitles to benefits but not yet receiving them -
Active employees 729
Total 816
City Library
Annual required contribution 1,271,450$ 24,890$
Interest on net OPEB obligation 127,747 4,012
Adjustment to annual required contribution (108,410) (3,405)
Annual Pension Cost 1,290,787 25,497
Contributions made (822,579) (9,766)
Increase (Decrease) in Net Pension Obligation 468,208 15,731
Net OPEB Obligation - Beginning 2,838,835 89,154
Net OPEB Obligation - Ending 3,307,043$ 104,885$
Percentage of
Fiscal Period Annual OPEB Annual OPEB Net OPEB
Ended Cost Cost Contributed Liability
12/31/2015 1,086,641$ 92.27%2,309,788$
12/31/2016 1,287,185 58.89%2,838,835
12/31/2017 1,290,787 63.73%3,307,043
The following table shows the components of the City's and the Library's annual OPEB cost for the year ended
December 31,2017,the estimated contributions to the plan and changes in the City's and the Library's net OPEB
obligation to the retiree health plan.
The City's annual OPEB cost,the percentage of annual OPEB cost contributed to the plan,and the net OPEB obligation
for 2017 and the two years prior were as follows.
At December 31, 2016 (date of last actuarial valuation), membership consisted of:
- 51 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 8. LONG-TERM DEBT - Continued
E.Postemployment Benefits other than Pensions (Defined Benefit Plan) - Continued
Percentage of
Fiscal Period Annual OPEB Annual OPEB Net OPEB
Ended Cost Cost Contributed Liability
12/31/2015 17,555$ 8.56%72,769$
12/31/2016 25,386 35.46%89,154
12/31/2017 25,497 38.30%104,885
City Library
Actuarial accrued liability (AAL)15,018,773$ 306,506$
Actuarial value of plan assets - -
Unfunded Actuarial Accrued Liability (UAAL)15,018,773$ 306,506$
Funded ratio (actuarial value of plan assets/AAL)0.00%0.00%
Covered payroll (active plan members)62,745,197$ 1,280,514$
UAAL as a percentage of covered payroll 23.94%23.94%
The Library's annual OPEB cost,the percentage of annual OPEB cost contributed to the plan,and the net OPEB
obligation for 2017 and the two years prior were as follows.
The funded status of the City and the Library plan based on the projected valuation results as of December 31,2017 was
as follows:
Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and assumptions about the
probability of occurrence of events far into the future.Examples include assumptions about future employment,mortality,
and the health care trend.Amounts determined regarding the funded status of the plan and annual required contributions
of the employer are subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.The schedule of funding progress,presented as required supplementary information following
the notes to the financial statements,presents multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is understood by the
employer and plan members)and include the types of benefits provided at the time of each valuation and the historical
pattern of sharing benefit costs between the employer and plan members to that point.The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and
the actuarial value of assets, consistent with the long-term perspective of calculations.
In the actuarial valuation as of December 31,2016,the entry-age normal cost method was used.The actuarial
assumptions include a 4.5%discount rate and an annual health care cost trend rate of 8.0%initially,reduced by
decrements to an ultimate rate of 4.5%.Both rates include a 3.5%price inflation assumption.The actuarial value of
retiree health plan assets was determined using techniques that spread the effects of short-term volatility in the market
value of investments over a three-year period.Retiree health plan's unfunded actuarial accrued liability is being amortized
as a level percentage of projected payroll on an open basis. The amortization period at December 31, 2016 was 30 years.
- 52 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 9.FUND EQUITY
A.Restricted Net Position - Fiduciary Funds
Fiduciary Funds
Firefighters' Pension Fund restriction for employee pension benefits 79,073,077$
Police Pension Fund restriction for employee pension benefits 121,629,668
Total Fiduciary Funds 200,702,745$
B.Assigned Fund Balances
The following are the assigned fund balances:
General Fund
Assigned for Arts Council 20,948$
Assigned for Dutch elm inoculation 499,973
Assigned for parkway trees 60,722
Assigned for Butterfield sculpture 30,883
Assigned for scholarship contributions 10,806
Assigned for Noyes Center 337,086
Assigned for recreation group activities 207,123
Assigned for parks and recreation 480,600
Assigned for Mayor's programs 93,179
Assigned for IMRF - Pension 1,112,052
Assigned for compensated absences 1,181,867
Other assignments 144,378
Total General Fund 4,179,617
Nonmajor Governmental Funds
Assigned for capital projects 9,303,425
Assigned for special assessment capital projects 2,997,700
Total Nonmajor Governmental Funds 12,301,125
Total Assigned Fund Balances 16,480,742$
- 53 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 10.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 water/sewer service fees related to the citywide water/sewer improvement project;tax increment revenues in
the Washington National and Howard Hartrey Tax Increment Districts;revenues from the Motor Vehicle Parking
System Fund associated with the Maple Garage,Sherman Garage,and Church Street Self-Park Garage;and General
Obligation Debt Service Fund interest income.
On January 28,1997,the City executed a long-term water supply contract with the Village of Skokie,Illinois,to replace
an expiring contract.The contract took effect on March 1,1997 and continues in effect for a period of 20 years until
February 28,2017.The conrtact was extended further until October 31,2017.Currently,the City is working with the
Village of Skokie to have a new contract with revised terms to supply Lake Michigan water to the Village of Skokie.
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,the City is to supply NWWC sufficient potable Lake
Michigan water to satisfy NWWC’s maximum 24-hour demands for Lake Michigan water for resale to NWWC’s
customers.
On August 13,2007,the City Council adopted Ordinance No.37-R-07 which extended the life of Special Service
District No.4 until December 31,2019.Special Service District No.4 comprises the central business district of the
City.The special district was established for the purpose of providing funds for special maintenance and repair and for
promotion and advertisement.The annual property tax levy for 2017 was $377,551 which includes an estimated
allowance amount of $7,551.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 11. RISK MANAGEMENT - CLAIMS AND JUDGMENTS
The changes in the balances of claims liabilities during the past two fiscal periods are as follows:
Workers’General
Compensation Liability Total
December 31, 2015 1,927,120$ 2,300,248$ 4,227,368$
New claims and/or estimate revisions 347,299 2,798,000 3,145,299
Claims payments (29,549) (1,415,248) (1,444,797)
December 31, 2016 2,244,870 3,683,000 5,927,870
New claims and/or estimate revisions 1,469,090 (55,786) 1,413,304
Claims payments (800,460) (2,253,214) (3,053,674)
December 31, 2017 2,913,500$ 1,374,000$ 4,287,500$
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.
Workers'compensation and general liability risks are accounted for in the Insurance Fund.The fund was established on March 1,1994
to administer general liability claims and workers'compensation programs on a cost-reimbursement basis.The fund accounts for the
aforementioned liabilities of the City, but does not constitute a transfer of risk from the City.
The City is exposed to various risks of loss related to torts;theft of,damage to,and destruction of assets;errors and omissions;natural
disasters;and injuries to the City's employees.The City maintains commercial all-risk property insurance to cover damage to city
facilities and contents and other losses including business interruption and loss of rents.The coverage is subject to a deductible of
$50,000 (except $100,000 for flood and earthquake)for each loss and each location.The City also maintains crime and fidelity
insurance coverage with a $25,000 deductible to a limit of $2,000,000.In addition,coverage is maintained for ambulance/paramedic
liability.
For workers'compensation,specific excess coverage in excess of $750,000 per occurrence is purchased from a commercial insurance
company. For general liability claims, the City retains risk of loss of $1,250,000 to a limit of $10,000,000.
For its health insurance coverages,the City participates through a sub-pool in the Intergovernmental Personnel Benefit Cooperative
(IPBC).IPBC is a public entity risk pool established in 1979 by certain units of local government in Illinois to administer some or all
of the personnel benefit programs (primarily medical,dental,and life insurance coverage)offered by these members to their officers
and employees and to the officers and employees of certain other governmental,quasi governmental,and nonprofit public service
entities.Management consists of a Board of Directors comprised of one appointed representative from each member.The officers of
IPBC are chosen by the Board of Directors from among their membership.The City does not exercise any control over the activities of
IPBC beyond its representation on the Board of Directors of the sub-pool.To obtain IPBC’s financial statements,contact the
administrative offices of IPBC at 301 East Irving Park Road, Streamwood, Illinois 60107.
- 55 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 12.CONTINGENCIES
NOTE 13.JOINT VENTURES
A.Solid Waste Agency of Northern Cook County
There are various claims and legal actions pending against the City for which provision has been made in the financial
statements.At the present time,the City believes that the reserves established are sufficient so that the expected liability for
these claims and legal actions will not materially exceed the amounts recorded in the financial statements.Amounts
received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal
government.Any disallowed claims,including amounts already collected,may constitute a liability of the applicable
funds.The amount,if any,of the expenditures which may be disallowed by the grantor cannot be determined at this time
although the City expects such amounts, if any, to be immaterial.
Under the 1992 project use agreement executed by the City with the Agency,the City’s share of project costs,including
debt service and disposal,is based on its share of deliveries to the Wheeling Transfer Station for each year.The City does
not control the Agency's fiscal management or operations nor is the City legally responsible for any more than its share of
the Agency's debt or operating deficits, if any.
On March 28,1988,the Evanston City Council authorized agreements providing for the City's participation in the Solid
Waste Agency of Northern Cook County (Agency)and in the interim financing of that Agency.The Agency was planned
and developed by the Northwest Municipal Conference,of which the City is a member.The Agency is empowered to plan,
finance, construct, and operate a solid waste disposal system.
The Agency is a municipal joint action agency created as of May 2,1988 under the provisions of the Intergovernmental
Cooperation Act (the Act),5 ILCS 220/3.2.The Agency consists of 23 municipalities.The Agency is governed by a
Board of Directors consisting of one official selected by each member community who serves a two-year term.Each
director has one vote.The Board of Directors determines the general policies of the Agency.The Executive Committee of
the Agency consists of seven persons elected by the Board of Directors.Each person is entitled to one vote.The Executive
Committee may take action not specifically reserved to the Board of Directors by the Act,the Agency agreement,or the by-
laws.
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.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 13.JOINT VENTURES - Continued
A.Solid Waste Agency of Northern Cook County - Continued
Summary of Financial Position as of April 30, 2017:
Current assets 2,058,663$
Capital assets, net of depreciation 8,625,458
Total Assets 10,684,121
Current liabilities 1,989,852
Total Liabilities 1,989,852
Deferred inflows of resources
Deferred rent 116,571
Net investment in capital assets 8,625,458
Restricted, revenue bonds -
Unrestricted deficit (47,760)
Net Position 8,577,698$
Summary of Revenues and Expenses for the Year Ended April 30, 2017:
Total revenues 12,029,784$
Total expenses (12,540,648)
Net Income (510,864)$
Complete financial statements for the Agency can be obtained at 2700 Patriot Blvd., Glenview, IL 60026.
- 57 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS
A.Plan Descriptions
Illinois Municipal Retirement Fund
Plan Administration
Plan Membership
Inactive employees or their beneficiaries
currently receiving benefits 664
Inactive employees entitled to but not
353
Active employees 539
Total 1,556
Benefits Provided
yet receiving benefits
At December 31, 2016, IMRF membership consisted of:
All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF
as participating members.
The City contributes to the Illinois Municipal Retirement Fund (IMRF),a defined benefit agent multiple-employer
public employee retirement system that acts as a common investment and administrative agent for local governments
and school districts in Illinois (other than those covered by the Police or Firefighters'Pension Plan).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 supplementary
information for the plan as a whole,but not by individual employer.That report may be obtained by writing to the
Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting.
Employer and employee contributions are recognized when earned in the year that the contributions are required,
benefits and refunds are recognized as an expense and liability when due and payable.
The IMRF data included in the table above includes membership of both the City and the Library.
IMRF provides two tiers of pension benefits.Employees hired prior to January 1,2011 are eligible for Tier 1 benefits.
For Tier 1 employees,pension benefits vest after eight years of service.Participating members who retire at age 55
(reduced benefits)or after age 60 (full benefits)with eight years of credited service are entitled to an annual retirement
benefit,payable monthly for life,in an amount equal to 1 2/3%of their final rate of earnings,for each year of credited
service up to 15 years,and 2%for each year thereafter.Employees hired on or after January 1,2011 are eligible for
Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire
at age 62 (reduced benefits)or after age 67 (full benefits)with ten years of credited service are entitled to an annual
retirement benefit,payable monthly for life,in an amount equal to 1 2/3%of their final rate of earnings,for each year
of credited service up to 15 years,and 2%for each year thereafter.IMRF also provides death and disability benefits.
These benefit provisions and all other requirements are established by state statute.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Contributions
Actuarial Assumptions
Actuarial valuation date December 31, 2016
Actuarial cost method Entry-age normal
Assumptions
Inflation 2.75%
Salary increases 3.75% to 14.50%
Interest rate 7.50%
Cost of living adjustments 3.00%
Asset valuation method Market value
The City’s net pension liability was measured as of December 31,2016 and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation performed as of the same date using the following
actuarial methods and assumptions.
For nondisabled retirees,an IMRF specific mortality table was used with fully generational projection scale MP-2014
(base year 2012).IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality
Table with adjustments to match current IMRF experience.For disabled retirees,an IMRF specific mortality table was
used with fully generational projection scale MP-2014 (base year 2012).IMRF specific rates were developed from the
RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for nondisabled lives.For
active members,an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base
year 2012).IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to
match current IMRF experience.
Employees participating in IMRF are required to contribute 4.50%of their annual covered salary to IMRF.The
member rate is established by state statute.The City is required to contribute the remaining amounts necessary to fund
IMRF as specified by statue.The employer contribution rate for the calendar year ended December 31,2017 was
10.66% of covered payroll.
Changes in assumptions related to retirement age and mortality were made since the prior measurement date.
- 59 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Discount Rate
Changes in Net Pension Liability
(a)(b)(a) - (b)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances at
January 1, 2016 230,426,570$ 211,199,130$ 19,227,440$
Changes for the period
Service cost 3,951,687 - 3,951,687
Interest 16,947,408 - 16,947,408
Difference between expected and
actual experience (2,905,680) - (2,905,680)
Changes in assumptions (269,039) - (269,039)
Employer contributions - 3,963,856 (3,963,856)
Employee contributions - 1,705,636 (1,705,636)
Net investment income - 14,441,739 (14,441,739)
Benefit payments and refunds (12,270,564) (12,270,564) -
Administrative expense - - -
Other (net transfer)- (142,981) 142,981
Net Changes 5,453,812 7,697,686 (2,243,874)
Balances at
December 31, 2016 235,880,382$ 218,896,816$ 16,983,566$
The discount rate used to measure the total pension liability was 7.50%.The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current contribution rate and that
the City contributions will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate.Based on those assumptions,the City’s fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members.
The table presented above includes amounts for both the City and the Library.The City’s proportionate share of the
net pension liability at January 1,2016,the employer contributions,and the net pension liability at December 31,
2016 was $17,681,357,$3,613,055,and $15,480,181,respectively.The Library’s proportionate share of the net
pension liability at January 1,2016,the employer contributions and the net pension liability at December 31,2016
was $1,546,083, $350,801, and $1,503,385, respectively.
- 60 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience 1,062,946$ 1,902,398$
Changes in assumption 1,338,868 176,148
Net difference between projected and actual earnings
on pension plan investments 10,055,756 -
Employer contributions after the measurement date 3,381,760
Total 15,839,330$ 2,078,546$
Year Ending
December 31,
2017 5,255,834$
2018 3,184,416
2019 2,717,394
2020 229,058
Thereafter -
Total 11,386,702$
For the year ended December 31,2016,the City recognized pension expense of $9,529,723.At December 31,2016,
the City reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following
sources:
The deferred outflows presented in the table above include amounts for both the City and the Library.The City’s
proportionate share of the deferred outflows and inflows of resources at December 31,2016 was $15,839,330 and
$2,078,546,respectively.The Library’s proportionate share of the deferred outflows and inflows of resources at
December 31, 2016 was $1,538,265 and $201,861, respectively.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be
recognized in pension expense as follows:
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Discount Rate Sensitivity
Current
1% Decrease Discount Rate 1% Increase
(6.50%)(7.50%)(8.50%)
City 41,946,384$ 15,480,181$ (6,317,096)$
Library 4,072,688 1,503,385 (613,344)
Total 46,019,072$ 16,983,566$ (6,930,440)$
The following is a sensitivity analysis of the net pension liability (asset)to changes in the discount rate.The table
below presents the net pension liability (asset)of the City calculated using the discount rate of 7.50%as well as what
the City’s net pension liability (asset)would be if it were calculated using a discount rate that is 1 percentage point
lower (6.50%) or 1 percentage point higher (8.50%) than the current rate:
- 62 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans
Plan Administration
Plan Membership
At January 1, 2017, plan membership consisted of:
Firefighters'
Police Pension Pension
Inactive plan members or beneficiaries
currently receiving benefits 177 137
Inactive plan members entitled to
but not yet receiving benefits 17 3
Active plan members 165 103
Total 359 243
Benefits Provided
The Police Pension Plan and Firefighters'Pension Plan are contributory,defined benefit public employee retirement plans
administered by the City and a Board of Trustees for each fund.All sworn city police officers and firefighters are
participants in the plans.The plans do not issue stand-alone financial reports and they are not included in the report of a
public employee retirement system or another entity.The City accounts for the Police Pension and Firefighters'Pension
Plans as pension trust funds.
The plans are governed by a five-member pension board.Two members appointed by the City's Council,one elected by
retired pension members, and two elected by active members, constitute the pension board.
The Police and Firefighters'Pension Plans are accounted for on the economic resources measurement focus and the accrual
basis of accounting.Employer and employee contributions are recognized when earned in the year that the contributions are
required, benefits and refunds are recognized on an expense and liability when due and payable.
For employer contributions,the City’s budget policy is to fund pension plans at the funding level recommended annually by
the actuary. The General Fund is used to liquidate the net pension liability.
As provided for in the Illinois Compiled Statutes,the Police and Firefighters'Pension Funds provide retirement benefits as
well as death and disability benefits to employees grouped into two tiers.Tier 1 is for employees hired prior to January 1,
2011 and Tier 2 is for employees hired after that date.The following is a summary of the Police and Firefighters'Pension
Funds as provided for in Illinois Compiled Statutes.
- 63 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS – Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Benefits Provided - Continued
Police Pension Plan
Firefighters' Pension Plan
Tier 1 ‑Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to
receive an annual retirement benefit of one half of the salary attached to the rank on the last day of service,or for one year
prior to the last day,whichever is greater.The pension shall be increased by 2.5%of such salary for each additional year of
service over 20 years up to 30 years to a maximum of 75%of such salary.Employees with at least 8 years but less than 20
years of credited service may retire at or after age 60 and receive a reduced retirement benefit.The monthly pension of a
police officer who retired with 20 or more years of service after January 1,1977 shall be increased annually,following the
first anniversary date of retirement and paid upon reaching at least age 55,by 3%of the original pension and 3%
compounded annually thereafter.
Tier 2 ‑Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to
receive a monthly pension of 2.5%of the final average salary for each year of creditable service.The salary is initially
capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary.Employees with 10 or
more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit.The monthly pension
of a police officer shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the
first anniversary of the pension start date,whichever is later.Each annual increase shall be calculated at 3%or one-half the
annual unadjusted percentage increase in the consumer price index (CPI), whichever is less.
Tier 1 -Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to
receive a monthly retirement benefit of one-half of the monthly salary attached to the rank held in the fire service at the date
of retirement.The monthly pension shall be increased by one-twelfth 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.Employees with
at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement
benefit.The monthly pension of a firefighter who retired with 20 or more years of service after January 1,1977 shall be
increased annually,following the first anniversary date of retirement and paid upon reaching at least the age 55,by 3%of
the original pension and 3% compounded annually thereafter.
Tier 2 ‑Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to
receive a monthly pension of 2.5%of the final average salary for each year of creditable service.The salary is initially
capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary.Employees with 10 or
more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit.The monthly pension
of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first
anniversary of the pension start date,whichever is later.Each annual increase shall be calculated at 3%or one-half the
annual unadjusted percentage increase in the CPI, whichever is less.
- 64 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Contributions
Investment Policy
Police Pension Fund
Police Pension Asset Class
Domestic Large-Cap Equities 3.25%
Domestic Small-Cap Equities 3.50%
International Equities 4.00%
Fixed Income 3.00%
REITS 4.00%
Cash -0.25%
Total
5.00%
Covered employees are required to contribute 9.91%of their base salary to the Police Pension Plan.If an employee leaves
covered employment with less than 20 years of service,accumulated employee contributions may be refunded without
accumulated interest.The City is required to contribute the remaining amounts necessary to finance the plans as actuarially
determined by an enrolled actuary.Effective January 1,2011,the City's contributions must accumulate to the point where
the past service cost for the Police Pension Plan is 90%funded by the year 2040.For the year ended December 31,2017,
the City's contribution was 67.09% of covered payroll.
Participants contribute a fixed percentage of their base salary to the Firefighters'Pension Plan.At December 31,2017,the
contribution percentage was 9.455%.If a participant leaves covered employment with less than 20 years of service,
accumulated participant contributions may be refunded without accumulated interest.The City is required to contribute the
remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary.Effective January 1,
2011,the City’s contributions must accumulate to the point where the past service cost for the Firefighters'Pension Plan is
90%funded by the year 2040.For the year ended December 31,2017,the City’s contribution was 79.58%of covered
payroll.
Permitted Deposits and Investments -Statutes and the Police Pension Fund’s (the Fund)investment policy authorize the
Fund to make deposits/invest in insured commercial banks,savings and loan institutions,obligations of the U.S.Treasury
and U.S.agencies,insured credit union shares,money market mutual funds with portfolios of securities issued or
guaranteed by the United States Government or agreements to repurchase these same obligations,repurchase agreements,
short-term commercial paper rated within the three highest classifications by at least two standard rating services,Illinois
Funds,IMET,certain non-U.S.obligations,Illinois municipal corporations tax anticipation warrants,veteran’s loans,
obligations of the State of Illinois and its political subdivisions,and Illinois insurance company general and separate
accounts,mutual funds and equity securities (not to exceed 65%of the total net position of the Fund),and corporate bonds.
During the year, no changes to the investment policy were approved by the Board of Trustees.
The Fund's investment policy allows investments in all of the above listed accounts,but does exclude any repurchase
agreements.The Fund's investment policy,in accordance with Illinois Statutes,establishes the following target allocation
across asset classes:
Long-Term Expected
Target Allocation Real Rate of Return
52.00%
5.00%
32.00%
3.00%
3.00%
100.00%
- 65 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Investment Policy - Continued
Police Pension Fund - Continued
Firefighters' Pension Fund
Firefighters' Pension Asset Class Target Allocation
Ultra Short Fixed Income 0.60%-0.40%
U.S. Fixed Income 35.80%1.20%
High Yield 1.50%5.10%
U.S. Large Cap Growth Equity 15.70%6.50%
U.S. Large Cap Value Equity 16.30%6.20%
U.S. Mid Cap Growth Equity 3.60%7.50%
U.S. Mid Cap Value Equity 3.60%6.90%
U.S. Small Cap Growth Equity 2.40%8.40%
U.S. Small Cap Value Equity 2.40%7.60%
Europe Equity 5.30%5.10%
Japan Equity 1.40%5.60%
Emerging Market Equity 0.60%9.00%
Infrastructure 5.90%4.60%
Equity Hedge Assets 1.80%2.00%
Equity Return Assets 3.10%3.80%
Total 100.00%
The long-term expected rate of return on the Fund's investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns,net of pension plan investment expenses,and
inflation)are developed for each major asset class.These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.Best estimates of arithmetic real rates of return for each major asset class included in the Fund's target asset
allocation as of December 31, 2017 are listed in the table above.
The Firefighters'Pension Fund (the Fund)allows funds to be invested in any type of security authorized by the Illinois
Pension Code.During the year,no changes to the investment policy were approved by the Board of Trustees.The Fund's
investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes:
Long-Term Expected
Real Rate of Return
The long-term expected rate of return on the Fund's investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns,net of pension plan investment expenses,and
inflation)are developed for each major asset class.These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.Best estimates of arithmetic real rates of return for each major asset class included in the Fund's target asset
allocation as of December 31, 2017 are listed in the table above.
- 66 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Investment Valuations
Investment Rate of Return
Deposits with Financial Institutions
Interest Rate Risk
Fair Value Less Than 1 Year 1 - 5 Years 6 - 10 Years Greater than 10 Years
Corporate bonds 27,519,726$ 2,133,896$ 13,329,137$ 10,785,074$ 1,271,619$
U.S. Treasuries 13,809,363 265,746 3,939,695 4,364,731 5,239,191
Federal Home Loan Bank 2,327,251 1,340,820 986,431 - -
Federal Home Loan Mortgage Corp 4,238,863 529,830 1,532,632 638,258 1,538,143
Fannie Mae 6,149,253 1,131,752 145,411 1,825,012 3,047,078
Ginnie Mae 151,012 873 3,164 31,455 115,520
Other U.S. Government Agencies 1,054,035 435,081 365,107 160,384 93,463
Total Police and
Firefighters' Investment $ 55,249,503 $ 5,837,998 $ 20,301,577 $ 17,804,914 $ 11,305,014
For the year ended December 31,2017,the Police Pension Plan annual money-weighted rate of return on pension plan
investment,net of pension plan investment expense,was 14.25%.The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
All investments in the Police and Firefighters'Pension Plans are stated at fair value and are recorded as of the trade date.
Fair value is based on quoted market prices at December 31 for debt securities,equity securities and mutual funds,and
contract values for any insurance contracts.Investment income is recognized as earned.Gains and losses on sales and
exchanges of fixed income securities are recognized on the transaction date.
For the year ended December 31,2017,the Firefighters'Pension Plan annual money weighted rate of return on pension plan
investment,net of pension plan investment expense,was 11.42%.The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure,the Funds'
deposits may not be returned to them.The Funds'investment policies do not require pledging of collateral for all bank
balances in excess of federal depository insurance,since flow-through FDIC insurance is available for the Funds'deposits
with financial institutions.
The following table presents the investments and maturities of the Funds' debt securities as of December 31, 2017:
Police and Firefighters' Pension
Investment Type
In accordance with its investment policy,the Funds'limit exposure to interest rate risk by structuring the portfolio to
provide liquidity for operating funds not needed within a one-year period.The investment policies does not limit the
maximum maturity length of investments in the Funds'.
Investment Maturities (In Years)
- 67 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Interest Rate Risk (Continued)
Credit Risk
Custodial Credit Risk - Investments
The Funds'limits its exposure to credit risk,the risk that the issuer of a debt security will not pay its par value upon
maturity,by investing in obligations guaranteed by the United States Government or securities issued by agencies of the
United States Government that are explicitly or implicitly guaranteed by the United States Government bonds and
investment grade bonds.The U.S.Treasury and agency obligations are rated by Moody’s Aaa,the corporate bonds are rated
between Baa3 and Aaa,and the municipal bonds are rated between Aa3 and Aaa.Illinois Funds is rated Aaa by Standard
and Poor’s.
Custodial credit risk for investments is the risk that,in the event of the failure of the counterparty to the investment,the
Funds'will not be able to recover the value of their investments that are in possession of an outside party.To limit its
exposure,the Funds'investment policies require all security transactions that are exposed to custodial credit risk to be
processed on a delivery versus payment (DVP)basis with the underlying investments held by a third party acting as the
Funds'agent separate from where the investment was purchased in the Funds'name.Illinois Funds and IMET are not
subject to custodial credit risk.
Concentration of Credit Risk -Illinois Compiled Statutes (ILCS)limits the Funds'investments in equities,mutual funds,
and variable annuities to 65%.Securities in any one company should not exceed 5%of the total fund.The blended asset
class is comprised of all other asset classes to allow for rebalancing the portfolio.
The Police Pension Trust Fund had no significant investments (other than U.S.Treasuries and corporate bonds)in any one
organization that represented 5% or more of net position available for benefits.
The Firefighters'Pension Trust Fund had no significant investments (other than corporate bonds)in any one organization
that represented 5% or more of net position available for benefits.
The Police and Firefighters'Pension Funds categorize the fair value measurements within the fair value hierarchy
established by generally accepted accounting principles.The hierarchy is based on the valuation inputs used to measure the
fair value of the asset.Level 1 inputs are quoted prices in active markets for identical assets;Level 2 inputs are significant
other observable inputs; and Level 3 inputs are significant unobservable inputs.
The City's Police Pension Fund has the following recurring fair value measurements as of December 31,2017.The U.S.
Treasury Obligations,Domestic and International Equity securities are valued using quoted market prices (Level 1 inputs).
Corporate bonds, municipal bonds, and U.S. agency obligations are valued using matrix pricing models (Level 2 inputs).
The City's Firefighters'Pension Fund has the following recurring fair value measurements as of December 31,2017.The
U.S.Treasury Obligations,Domestic and International Equity securities are valued using quoted market prices (Level 1
inputs).Corporate bonds,municipal bonds,and U.S.agency obligations are valued using matrix pricing models (Level 2
inputs).
- 68 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Actuarial Assumptions
Actuarial valuation date
Actuarial cost method
Asset valuation method
Actuarial assumptions:
Projected salary increases graded by age
Inflation
Interest rate
Cost-of-living adjustments
Discount Rate
Police Pension Firefighters' Pension
The total pension liability above was determined by an actuarial valuation performed using the following actuarial methods
and assumptions.
December 31, 2017 December 31, 2017
Entry-age normal Entry-age normal
From 7.36% to 3.62%From 7.36% to 3.62%
Market value Market value
6.25%6.25%
From 3.00% to 1.25%From 3.00% to 1.25%
Mortality rates were based on the RP-2000 Combined Healthy Mortality table with a Blue Collar Adjustment;disabled
mortality rate is based on RP-2000 Disabled Retiree Mortality table.
The discount rate used to measure the total police pension liability was 6.25%.The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current contribution rate and that the
City contribution will be made at rates equal to the difference between actuarially determined contribution rates and the
member rate.Based on those assumptions,the police pension plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members.
The discount rate used to measure the total firefighters'pension liability was 6.25%.The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current contribution rate and that the
City contribution will be made at rates equal to the difference between actuarially determined contribution rates and the
member rate.Based on those assumptions,the firefighter pension plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members.
2.50%2.50%
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Discount Rate (Continued)
Current Discount
1% Decrease Rate 1% Increase
Police Pension Fund:
Discount rate 5.25%6.25%7.25%
Net pension liability $ 143,331,397 $ 110,994,072 $ 84,527,419
Firefighters’ Pension Fund:
Discount rate 5.25%6.25%7.25%
Net pension liability $ 117,990,578 $ 94,343,860 $ 74,967,495
Total Net Pension Liability $ 261,321,975 $ 205,337,932 $ 159,494,914
Changes in the Net Pension Liability
Police Pension Fund
(a)(b)(a) - (b)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances at January 1, 2017 218,496,352$ 106,191,545$ 112,304,807$
Changes for the period
Service cost 3,993,751 - 3,993,751
Interest 14,088,889 - 14,088,889
Difference between expected and
actual experience 424,390 - 424,390
Changes in assumptions 7,096,300 - 7,096,300
Employer contributions - 10,300,549 (10,300,549)
Employee contributions - 1,521,467 (1,521,467)
Net investment income - 15,240,680 (15,240,680)
Benefit payments and refunds (11,475,943) (11,475,943) -
Administrative expense - (148,631) 148,631.00
Other (net transfer)- - -
Net Changes 14,127,387 15,438,122 (1,310,735)
Balances at December 31, 2017 232,623,739$ 121,629,667$ 110,994,072$
- 70 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Changes in the Net Pension Liability - Continued
Firefighters' Pension Fund
(a)(b)(a) - (b)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances at January 1, 2017 163,143,565$ 70,599,998$ 92,543,567$
Changes for the period
Service cost 2,813,961 - 2,813,961
Interest 10,507,435 - 10,507,435
Difference between expected and
actual experience 368,761 - 368,761
Changes in assumptions 5,192,584 - 5,192,584
Employer contributions - 8,205,800 (8,205,800)
Employee contributions - 974,992 (974,992)
Net investment income - 7,974,296 (7,974,296)
Benefit payments and refunds (8,609,369) (8,609,369) -
Administrative expense - (72,640) 72,640
Other (net transfer)- - -
Net Changes 10,273,372 8,473,079 1,800,293
Balances at December 31, 2017 173,416,937$ 79,073,077$ 94,343,860$
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Police Pension Fund
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience 2,618,987$ 2,678,500$
Changes in assumption 13,060,118 -
Net difference between projected and actual earnings
on pension plan investments 1,918,208 -
Total 17,597,313$ 2,678,500$
For the year ended December 31,2017,the City recognized police pension expense of $12,232,985.At December 31,
2017,the City reported deferred outflows of resources and deferred inflows of resources related to the Fund from the
following sources:
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources - Continued
Police Pension Fund - Continued
Year Ending
December 31,
2018 3,464,154$
2019 3,464,155
2020 3,972,197
2021 2,714,169
2022 1,304,138
Thereafter -
Total 14,918,813$
Firefighters' Pension Fund
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience 789,740$ 2,699,350$
Changes in assumption 9,469,240 -
Net difference between projected and actual earnings
on pension plan investments 3,346,353 -
Total 13,605,333$ 2,699,350$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Police Pension Plan
will be recognized in pension expense as follows:
For the year ended December 31,2017,the City recognized firefighters'pension expense of $10,173,265.At December 31,
2017,the City reported deferred outflows of resources and deferred inflows of resources related to the Fund from the
following sources:
- 72 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources - Continued
Firefighters' Pension Fund - Continued
Year Ending
December 31,
2018 2,829,797$
2019 2,829,796
2020 2,664,029
2021 1,793,619
2022 788,742
Thereafter -
Total 10,905,983$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Firefighters'Pension
Plan will be recognized in pension expense as follows:
- 73 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 15.PENSION TRUST FUNDS
Fiduciary Funds Summary Financial Information
The following is summary financial information for the Police Pension Plan and the Firefighters' Pension Plan:
A. Schedule of Net Position
Firefighters'Police
Pension Pension Total
Assets
Cash and cash equivalents 1,837,582$ 7,200,035$ 9,037,617$
Investments at fair value
U.S. Treasury obligations 2,248,044 11,561,319 13,809,363
U.S. agency obligations 2,316,957 11,603,457 13,920,414
Corporate bonds 14,466,822 13,052,904 27,519,726
Common stock 5,884,210 31,342,501 37,226,711
Equity mutual funds 52,190,381 46,580,666 98,771,047
Receivables
Accrued interest 148,734 237,169 385,903
Due from other governments 18,193 41,827 60,020
Other - 25,633 25,633
Total Assets 79,110,923 121,645,511 200,756,434
Liabilities
Accounts payable 37,846 15,844 53,690
Total Liabilities 37,846 15,844 53,690
Net Position Held in Trust
For Pension Benefits 79,073,077$ 121,629,667$ 200,702,744$
- 74 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 15.PENSION TRUST FUNDS - Continued
Fiduciary Funds Summary Financial Information - Continued
B. Changes in Plan Net Position
Firefighters'Police
Pension Pension Total
Additions
Contributions
Employer 8,205,800$ 10,300,549$ 18,506,349$
Plan members 974,992 1,521,467 2,496,459
Total Contributions 9,180,792 11,822,016 21,002,808
Investment income
Net appreciation
in fair value of investments 6,044,666 12,675,967 18,720,633
Interest on investments 2,065,886 2,829,084 4,894,970
Less investment expenses (136,256) (264,371) (400,627)
Total Investment Income 7,974,296 15,240,680 23,214,976
Total Additions 17,155,088 27,062,696 44,217,784
Deductions
Administrative 72,640 148,631 221,271
Benefits payments 8,609,369 11,342,344 19,951,713
Refunds of contributions - 133,599 133,599
Total Deductions 8,682,009 11,624,574 20,306,583
Net Increase 8,473,079 15,438,122 23,911,201
Net Position Held in Trust
For Pension Benefits
January 1 70,599,998 106,191,545 176,791,543
December 31 79,073,077$ 121,629,667$ 200,702,744$
- 75 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 16.EVANSTON LIBRARY COMPONENT UNIT
A.Types of Accounts and Securities
Custodial Credit Risk.For a deposit,custodial credit risk is the risk that,in the event of the failure of the
counterparty,the Library will not be able to recover the value of its deposit or collateral securities that are in the
possession of an outside party. At December 31, 2017, all of the Library's deposits were insured or collateralized.
Illinois Statutes authorize the Library to invest in obligations of the U.S.Treasury,in Government Sponsored
Enterprises (GSE)such as Federal Home Loan Mortgage Corporation (FHLMC),Federal Home Loan Bank (FHLB),
and Fannie Mae (FNMA);bankers acceptances as well as commercial paper rated only in the highest tier;repurchase
agreements of the highest grade;collateralized certificates of deposit issued by FDIC insured financial institutions,
money market mutual funds with portfolios limited to securities guaranteed by the United States Government,IMET,
and Illinois Funds.
Library investments consists of equities,ETFs,money market funds,mutual funds,corporate bonds,and U.S.
Treasuries.Investments are reported at fair value,except that non-negotiable certificate of deposits are stated at cost.
The Library has a formal investment policy adopted by its governing board to handle endowment funds.The funds
will be invested and administered by a three-member committee.It is the general policy of the Library to invest its
funds in a manner which will provide the highest investment return with the maximum security while meeting the
daily cash flow demands of the Library and conforming to all state and local statutes governing the investment of
public funds using "prudent person"standard for managing the overall portfolio.It may be noted though that the
Library has investments in equities which is not permissible under the state statutes.
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment.The
exposure to interest rate risk can be limited by structuring the portfolio to provide liquidity for cash requirements for
ongoing operations in shorter term securities.
Credit Risk is the risk that the issuer of the debt security will not pay its par value upon maturity.The Library's
investment policy has several guidelines to minimize the potential losses on individual investment by diversifying the
investment portfolio,not permitting the investment in certain high risk securities.State law limits investments in
commercial paper,corporate bonds,and mutual bonds funds to the top two ratings issued by nationally recognized
statistical rating organizations.Illinois Funds and IMET are an investment pools managed by the State of Illinois,
Office of the Treasurer,and a Board of Trustees,which allows governments within the State to pool their funds for
investment purposes.They are not registered with the SEC as an investment company,but do operate in a manner
consistent with Rule 2a7 of the Investment Company Act of 1940.The investments in the securities of the United
States Government agencies were all rated AAA or Aaa by the Standard &Poor’s and by Moody’s Investor’s
Services.The investments in Illinois Funds and IMET are valued at the fund’s share price,the price for which the
investments could be sold.
Custodial Credit Risk.For an investment,custodial credit risk is the risk that,in the event of the failure of the
counterparty,the Library will not be able to recover the value of its investment or collateral securities that are in the
possession of an outside party. Illinois Funds are not subject to custodial credit risk.
Concentration of Credit Risk is the risk that the Library has a high percentage of its investments invested in one type
of investments.Currently,the Library has diversified its investments in various types of investments.The Library
investment policy provides the high/low limits for various type of investments like equity,fixed income securities,
and cash.
- 76 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 16.EVANSTON LIBRARY COMPONENT UNIT - Continued
B.Reconciliation of Cash and Investments
Cash and Equivalents 1,279,356$
Investments 4,385,655
Total per Statement of Position $ 5,665,011
Cash in bank 1,279,356$
Vanguard Money Market 322,165
Vanguard Equity Mutual Funds 4,063,490
Total Cash and Investments $ 5,665,011
C.Summary of Receivables
Receivables:
Property taxes 6,972,225$
D.Capital Assets Activity
Beginning Additions Deletions Ending
Capital Assets, not being Depreciated:
Land 311,380$ -$ -$ 311,380$
Capital Assets, being Depreciated/Amortized:
Buildings and improvements 18,994,231 647,359 - 19,641,590
Office equipment and furniture 2,285,009 - - 2,285,009
Infrastructure 230,006 - - 230,006
Library collections 8,610,141 - (312,907) 8,297,234
Capitalized leases 266,191 - - 266,191
Total capital assets being depreciated/amortized 30,385,578 647,359 (312,907) 30,720,030
Less Accumulated Depreciation/Amortization for:
Buildings and improvements 8,108,899 389,279 - 8,498,178
Office equipment and furniture 2,285,009 - - 2,285,009
Infrastructure 110,718 14,757 - 125,475
Library collections 7,590,744 354,772 - 7,945,516
Capitalized leases 266,190 - - 266,190
Total Accumulated Depreciation/Amortization 18,361,560 758,808 - 19,120,368
Total Capital Assets being Depreciated/Amortized, Net 12,024,018 (111,449) (312,907) 11,599,662
Library Activities Capital Assets, Net 12,335,398$ (111,449)$ (312,907)$ 11,911,042$
- 77 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2017
NOTE 16. EVANSTON LIBRARY COMPONENT UNIT - Continued
E.Long-Term Debt
Final
Interest Maturity Balance Balance Due Within
Rate Date 12/31/2016 Issued Payments 12/31/2017 One Year
General Obligations Debt
Series 2007 4.00%-5.00%12/1/2027 883,376$ -$ 883,376$ -$ -$
Series 2013B 2.00%-3.00%12/1/2025 436,764 - 161,171 275,593 87,440
Series 2016A 2.00%-4.00%12/1/2036 650,000 - 20,000 630,000 25,000
Series 2017A 3.00%-4.00%12/1/2037 - 1,380,000 - 1,380,000 40,000
Series 2017B 4.00%-5.00%12/1/2027 - 743,535 - 743,535 79,391
1,970,140 2,123,535 1,064,547 3,029,128 231,831
OPEB liability 89,154 15,731 - 104,885 -
Compensated absences payable - City 414,712 24,693 - 439,405 175,762
IMRF pension contributions 1,546,083 - 42,698 1,503,385 -
Total Long-Term Debt 4,020,089$ 2,163,959$ 1,107,245$ 5,076,803$ 407,593$
Year Ending
December 31, Principal Interest
2018 231,831$ 101,573$
2019 182,561 86,778
2020 167,390 81,648
2021 174,214 76,815
2022 181,602 71,740
2023-2027 941,529 265,562
2028-2032 555,000 137,481
2033-2037 595,000 53,669
Total 3,029,128$ 875,265$
The following schedule illustrates the annual debt service requirements to maturity for Library General Obligation Bonds.
- 78 -
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EVANSTON, ILLINOIS
Required Supplementary Information
Other Postemployment Benefits
December 31, 2017
Schedule of Funding Progress
(6)
(2)UAAL
Actuarial (4)as a
Actuarial (1)Accrued (3)Unfunded Percentage
Valuation Actuarial Liability Funded AAL (5)of Covered
Date Value of (AAL)Ratio (UAAL)Covered Payroll
December 31,Assets Entry-Age (1) / (2)(2) - (1)Payroll (4) / (5)
2012 -$ 17,294,689$ -$ 17,294,689$ 49,784,920$ 34.74%
2013 - 16,018,745 - 16,018,745 47,024,745 34.06%
2014 - 15,789,873 - 15,789,873 53,652,399 29.43%
2015 - 16,003,826 - 16,003,826 55,530,233 28.82%
2016 - 14,727,934 - 14,727,934 61,860,592 23.81%
2017 - 15,325,279 - 15,325,279 64,025,711 23.94%
Schedule of Employer Contributions
Annual
Required
Fiscal Employer Contribution Percentage
Year Contributions (ARC)Contributed
2012 872,419$ 1,128,615$ 77.30%
2013 919,845 1,101,611 83.50%
2014 925,407 1,102,988 83.90%
2015 1,004,111 1,104,196 90.94%
2016 766,541 1,312,571 58.40%
2017 832,345 1,296,340 64.21%
(See independent auditor's report.)
- 79 -
CITY OF EVANSTON, ILLINOIS
Schedule of Employer Contributions
Illinois Municipal Retirement Fund
Last Three Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2015 2016 2017
Actuarially determined contribution 3,977,718$ 3,882,629$ 3,695,564$
Contributions in relation to the actuarially
determined contribution 4,018,268 3,963,856 3,702,271
Contribution Deficiency (Excess)(40,550)$ (81,227)$ (6,707)$
Percentage contributed 101.0%102.1%100.2%
Covered-employee payroll 37,703,487$ 37,477,116$ 37,480,368$
Contributions as a percentage of
covered-employee payroll 10.7%10.6%9.9%
Notes to the Required Supplemental Information
The information presented was determined as part of the actuarial valuations as of January 1 of the prior fiscal year.
Additional information as of the latest actuarial valuation presented is as follows:the actuarial cost method was entry-age
normal;the amortization method was level percent of pay,closed and the amortization period was 28 years;the asset
valuation method was market;and the significant actuarial assumptions were an investment rate of return at 7.50%annually,
projected salary increases assumption of 3.75%to 14.50%annually and postretirement benefit increases of 3.00%
compounded annually.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be
compiled, information will be presented for as many years as is available.
(See independent auditor's report.)
- 80 -
CITY OF EVANSTON, ILLINOIS
Schedule of Employer Contributions
Police Pension Fund
Last Four Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017
Actuarially determined contribution 8,358,924$ 8,257,475$ 9,380,940$ 10,237,200$
Contributions in relation to the actuarially
determined contribution 8,644,196 8,804,264 9,450,824 10,300,549
Contribution Deficiency (Excess)(285,272)$ (546,789)$ (69,884)$ (63,349)$
Percentage contributed 103.4%106.6%100.7%100.6%
Covered-employee payroll 13,537,726$ 14,921,328$ 17,474,672$ 15,352,846$
Contributions as a percentage of
covered-employee payroll 63.9%59.0%54.1%67.1%
Notes to the Required Supplemental Information
The information presented was determined as part of the actuarial valuations as of January 1.Additional information as of the
latest actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was
level percent of pay,closed and the amortization period was 24 years;the asset valuation method was market and the significant
actuarial assumptions were an investment rate of return at 6.25%annually,projected salary increases assumption of 3.62%to
7.36% annually and postretirement benefit increases of 3.00% compounded annually.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be
compiled, information will be presented for as many years as is available.
(See independent auditor's report.)
- 81 -
CITY OF EVANSTON, ILLINOIS
Schedule of Employer Contributions
Firefighters' Pension Fund
Last Four Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017
Actuarially determined contribution 6,239,481$ 5,903,483$ 7,350,865$ 8,148,709$
Contributions in relation to the actuarially
determined contribution 6,527,697 6,385,244 7,396,641 8,205,800
Contribution Deficiency (Excess)(288,216)$ (481,761)$ (45,776)$ (57,091)$
Percentage contributed 104.6%108.2%100.6%100.7%
Covered-employee payroll 9,520,925$ 10,396,357$ 10,546,779$ 10,311,920$
Contributions as a percentage of
covered-employee payroll 68.6%61.4%70.1%79.6%
Notes to the Required Supplemental Information
The information presented was determined as part of the actuarial valuations as of January 1.Additional information as of the
latest actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was
level percent of pay,closed and the amortization period was 24 years;the asset valuation method was market;and the significant
actuarial assumptions were an investment rate of return at 6.25%annually,projected salary increases assumption of 3.62%to
7.36% annually and postretirement benefit increases of 3.00% compounded annually.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be
compiled, information will be presented for as many years as is available.
(See independent auditor's report.)
- 82 -
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Illinois Municipal Retirement Fund
Last Three Fiscal Years
MEASUREMENT DATE DECEMBER 31, 2014 2015 2016
Total Pension Liability
Service Cost 3,898,440$ 3,910,996$ 3,951,687$
Interest 14,880,724 16,235,086 16,947,408
Changes in benefit terms - - -
Differences between expected and actual experience 3,043,895 1,465,442 (2,905,680)
Changes of assumptions 7,927,038 266,906 (269,039)
Benefit payments, including refunds of member contributions (11,468,097) (11,928,345) (12,270,564)
Net Change in Total Pension Liability 18,282,000 9,950,085 5,453,812
Total Pension Liability - Beginning 202,194,485 220,476,485 230,426,570
Total Pension Liability - Ending 220,476,485$ 230,426,570$ 235,880,382$
Plan Fiduciary Net Position
Contributions - employer 3,963,983$ 4,018,268$ 3,963,856$
Contributions - member 1,710,168 1,767,523 1,705,636
Net investment income 12,425,190 1,062,353 14,441,739
Benefit payments, including refunds of member contributions (11,468,097) (11,928,345) (12,270,564)
Administrative expense 2,322,043 737,427 (142,981)
Net Change in Plan Fiduciary Net Position 8,953,287 (4,342,774) 7,697,686
Plan Fiduciary Net Position - Beginning 206,588,617 215,541,904 211,199,130
Plan Fiduciary Net Position - Ending 215,541,904$ 211,199,130$ 218,896,816$
Employer's Net Pension Liability 4,934,581$ 19,227,440$ 16,983,566$
Plan fiduciary net position as a percentage of the total pension liability 97.76%91.66%92.80%
Covered-employee payroll 35,171,426$ 37,703,487$ 37,477,116$
Employer's net pension liability as a percentage of covered-employee payroll 14.03%51.00%45.32%
There was a change in assumption related to the discount rate made since the prior measurement date.The discount rate used in the current actuarial
valuation,dated December 31,2016,is 7.50%.The discount rate used in the prior actuarial valuations,dated December 31,2015 and December 31,
2014 was 7.49% and 7.50%, respectively.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information
should be presented for as many years as is available.
(See independent auditor's report.)
- 83 -
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Police Pension Fund
Last Four Fiscal Years
MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017
Total Pension Liability
Service Cost 3,439,223$ 3,488,385$ 3,679,212$ 3,993,751$
Interest 12,284,036 12,663,010 13,192,680 14,088,889
Changes in benefit terms - - - -
Differences between expected and actual experience - 3,928,479 (3,214,201) 424,390
Changes of assumptions - 5,791,392 11,039,027 7,096,300
Benefit payments, including refunds of member contributions (9,891,045) (10,424,955) (10,970,916) (11,475,943)
Net Change in Total Pension Liability 5,832,214 15,446,311 13,725,802 14,127,387
Total Pension Liability - Beginning 183,492,025 189,324,239 204,770,550 218,496,352
Total Pension Liability - Ending 189,324,239$ 204,770,550$ 218,496,352$ 232,623,739$
Plan Fiduciary Net Position
Contributions - employer 8,644,196$ 8,804,264$ 9,450,824$ 10,300,549$
Contributions - member 1,565,053 1,454,720 1,731,740 1,521,467
Net investment income 8,675,133 430,756 7,544,856 15,240,680
Benefit payments, including refunds of member contributions (9,891,045) (10,424,955) (10,970,916) (11,475,943)
Administrative expense (68,938) (71,408) (123,796) (148,631)
Net Change in Plan Fiduciary Net Position 8,924,399 193,377 7,632,708 15,438,122
Plan Fiduciary Net Position - Beginning 90,763,143 99,687,542 98,558,837 106,191,545
Prior period adjustment - (1,322,082) - -
Plan Fiduciary Net Position - Beginning, restated 90,763,143 98,365,460 98,558,837 106,191,545
Plan Fiduciary Net Position - Ending 99,687,542$ 98,558,837$ 106,191,545$ 121,629,667$
Employer's Net Pension Liability 89,636,697$ 106,211,713$ 112,304,807$ 110,994,072$
Plan fiduciary net position as a percentage of the total pension liability 52.65%48.13%48.60%52.29%
Covered-employee payroll 13,537,726$ 14,921,328$ 17,474,672$ 15,352,846$
Employer's net pension liability as a percentage of covered-employee payroll 662.13%711.81%642.67%722.95%
There was a change in assumption related to the discount rate made since the prior measurement date.The discount rate used in the valuation dated December 31,
2017 is 6.25%.The discount rate used in the prior actuarial valuation,dated December 31,2015,is 6.50%.The discount rate used in the valuation dated,dated
December 31, 2014 was 6.75%.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information should be
presented for as many years as is available.
(See independent auditor's report.)
- 84 -
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Firefighters' Pension Fund
Last Four Fiscal Years
MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017
Total Pension Liability
Service Cost 2,326,092$ 2,431,680$ 2,731,257$ 2,813,961$
Interest 9,391,253 9,656,198 9,922,911 10,507,435
Changes in benefit terms - - - -
Differences between expected and actual experience - 1,184,609 (3,239,221) 368,761
Changes of assumptions - 4,239,272 7,971,672 5,192,584
Benefit payments, including refunds of member contributions (7,727,683) (8,067,965) (8,343,940) (8,609,369)
Net Change in Total Pension Liability 3,989,662 9,443,794 9,042,679 10,273,372
Total Pension Liability - Beginning 140,667,430 144,657,092 154,100,886 163,143,565
Total Pension Liability - Ending 144,657,092$ 154,100,886$ 163,143,565$ 173,416,937$
Plan Fiduciary Net Position
Contributions - employer 6,527,697$ 6,385,244$ 7,396,641$ 8,205,800$
Contributions - member 919,874 956,092 997,198 974,992
Net investment income 3,549,131 228,236 3,894,765 7,974,296
Benefit payments, including refunds of member contributions (7,727,683) (8,067,965) (8,343,940) (8,609,369)
Administrative expense (52,248) (44,597) (85,750) (72,640)
Net Change in Plan Fiduciary Net Position 3,216,771 (542,990) 3,858,914 8,473,079
Plan Fiduciary Net Position - Beginning 65,024,941 68,241,712 66,741,084 70,599,998
Prior period adjustment - (957,638) - -
Plan Fiduciary Net Position - Beginning, restated 65,024,941 67,284,074 66,741,084 70,599,998
Plan Fiduciary Net Position - Ending 68,241,712$ 66,741,084$ 70,599,998$ 79,073,077$
Employer's Net Pension Liability 76,415,380$ 87,359,802$ 92,543,567$ 94,343,860$
Plan fiduciary net position as a percentage of the total pension liability 47.17%43.31%43.27%45.60%
Covered-employee payroll 9,520,925$ 10,396,357$ 10,546,779$ 10,311,920$
Employer's net pension liability as a percentage of covered-employee payroll 802.60%840.29%877.46%914.90%
There was a change in assumption related to the discount rate made since the prior measurement date.The discount rate used in the valuation dated
December 31,2017 is 6.25%.The discount rate used in the prior actuarial valuation,dated December 31,2015,is 6.50%.The discount rate used in the
actuarial valuation dated December 31, 2014 was 6.75%.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information should
be presented for as many years as is available.
(See independent auditor's report.)
- 85 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original Final
Budget Budget Actual Variance
Revenues
Taxes 59,299,516$ 59,299,516$ 58,812,954$ (486,562)$
Licenses and permits 17,259,150 17,259,150 13,357,610 (3,901,540)
Intergovernmental 19,665,851 19,665,851 18,024,694 (1,641,157)
Charges for services 8,865,395 8,865,395 8,679,945 (185,450)
Fines 3,763,000 3,698,000 3,467,693 (230,307)
Investment income 50,100 50,100 38,558 (11,542)
Miscellaneous 2,170,046 2,170,046 1,858,107 (311,939)
Total Revenues 111,073,058 111,008,058 104,239,561 (6,768,497)
Expenditures
General management and support 17,789,893 17,789,893 16,839,903 (949,990)
Public safety 62,399,352 62,399,352 63,444,262 1,044,910
Public works 14,961,997 14,961,997 13,032,463 (1,929,534)
Health and human services development 3,539,815 3,539,815 3,110,698 (429,117)
Recreation and cultural opportunities 12,253,380 12,253,380 12,371,359 117,979
Housing and economic development 2,747,828 2,747,828 2,536,144 (211,684)
Total Expenditures 113,692,265 113,692,265 111,334,829 (2,357,436)
Excess (Deficiency) of Revenues
Over Expenditures (2,619,207) (2,684,207) (7,095,268) (4,411,061)
Other Financing Sources (Uses)
Transfers in 8,564,927 8,564,927 12,446,096 3,881,169
Transfers (out)(5,853,079) (5,853,079) (3,671,079) 2,182,000
Total Other Financing Sources (Uses)2,711,848 2,711,848 8,775,017 6,063,169
Net Change in Fund Balance 92,641$ 27,641$ 1,679,749 1,652,108$
Fund Balances
Beginning of Year 11,667,933
End of Year 13,347,682$
(See independent auditor's report.)
- 86 -
CITY OF EVANSTON, ILLINOIS
Schedule of Investment Returns
Police Pension Fund
Last Four Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017
Annual money-weighted rate of return,
net of investment expense 9.54%1.45%6.90%14.25%
Ultimately,this schedule should present return information for the last ten years.However,until ten years of
information can be compiled, return information should be presented for as many years as is available.
(See independent auditor's report.)
- 87 -
CITY OF EVANSTON, ILLINOIS
Schedule of Investment Returns
Firefighters' Pension Fund
Last Four Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017
Annual money-weighted rate of return,
net of investment expense 5.47%0.36%5.90%11.42%
Ultimately,this schedule should present return information for the last ten years.However,until ten years of
information can be compiled, return information should be presented for as many years as is available.
(See independent auditor's report.)
- 88 -
CITY OF EVANSTON, ILLINOIS
Notes to Required Supplementary Information
December 31, 2017
Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1.
2.Public budget hearings are conducted. Taxpayer comments are received and noted.
3.The budget is legally enacted through passage of a resolution.
4.
5.
Discrete Component Unit:
1.
2.
3.
4.
5.
Fund Actual Budget Variance
Special Service District No. 4 $ 329,000 $ 320,000 $ 9,000
Community Development Block Grant Fund 1,900,376 1,454,683 445,693
Chicago-Main TIF Fund 3,669,512 3,640,000 29,512
Howard Hartrey TIF Fund 599,668 - 599,668
Dempster-Dodge TIF Fund 2,092,108 2,044,000 48,108
West Evanston TIF Fund 14,234 10,000 4,234
Special Assessment Capital Projects Fund 6307 - 6,307
A series of public Library Board meetings are conducted as the EPL Board of Trustees considers the
budget proposal. Taxpayer comments are received and noted.
Because of a calendar year,the City Manager will submit to the City Council a proposed operating
budget for the upcoming fiscal year commencing January 1,2017.The operating budget includes
proposed expenditures and the means of financing them.
The City Manager is authorized to transfer budgeted amounts between departments within any fund;
however,any revisions that alter the total expenditures of any fund must be approved by the City
Council. There were budget allocations within General Fund.
Budgets are legally adopted on a basis consistent with GAAP except that property taxes are budgeted as
revenue in the year they are levied.For purposes of preparing the General Fund -budget and actual
(budgetary basis)schedule of revenues,expenditures,and changes in fund balance,GAAP revenues and
expenditures have been adjusted to the budgetary basis.
The Library follows these procedures in establishing the budgetary data reflected in the financial statements:
Because of a calendar year,the Library Director submits a proposed operating budget for the upcoming
fiscal year commencing January 1,2017 to the EPL Board of Trustees.Upon approval of the budget
proposal by the EPL Board of Trustees,the Library’s proposed budget is submitted to the City Manager.
The Library's budget is included in the budget documents which the City Manager will submit to the
City Council. The operating budget includes proposed expenditures and the means of financing them.
The following funds had an excess of actual budgetary expenditures over original and final budget for the fiscal year
ended December 31, 2017:
The budget is legally enacted through passage of a resolution by the Library Board of Trustees.
The Library Director is authorized to transfer budgeted amounts between library departments within any
library fund;however,any revisions that alter the total expenditures of any library fund must be
approved by the EPL Board of Trustees.There were budget allocations within the Library Fund but the
total did not change.
Budgets are legally adopted on a basis consistent with GAAP except that property taxes are budgeted as
revenue in the year they are levied.For purposes of preparing the Library Operating Fund -budget and
actual (budgetary basis)schedule of revenues,expenditures,and changes in fund balance,GAAP
revenues and expenditures have been adjusted to the budgetary basis.
The level of control (level at which expenditures may not exceed budget)is the fund.All unencumbered annual
appropriations lapse at the end of the fiscal year.
- 89 -
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
General Fund - to account for all financial resources of the City except those accounted for in
another fund.
General Obligation Debt Fund - to account for non-abated, general obligation payments on the
principal and interest related to bonds and/or other City debt.
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues
Taxes
Property
Current year levy 28,639,628$ 28,639,628$ 28,294,363$ (345,265)$
Prior year levy - - - -
Total Property Taxes 28,639,628 28,639,628 28,294,363 (345,265)
Personal Property Replacement Tax 1,451,300 1,451,300 1,394,387 1,394,387
Other Taxes
State use tax 1,750,000 1,750,000 1,926,695 176,695
Sales tax - home rule 6,613,588 6,613,588 6,122,088 (491,500)
Auto rental tax 50,000 50,000 56,792 6,792
Athletic contest tax 1,000,000 1,000,000 848,053 (151,947)
Municipal hotel tax 2,100,000 2,100,000 2,009,287 (90,713)
Utility tax 7,100,000 7,100,000 6,607,719 (492,281)
Cigarette tax 200,000 200,000 287,871 87,871
Evanston motor fuel tax 750,000 750,000 867,530 117,530
Medical Cannabis tax 10,000 10,000 3,675 (6,325)
Liquor tax 3,100,000 3,100,000 3,009,899 (90,101)
Parking tax 3,170,000 3,170,000 2,965,327 (204,673)
Amusement tax 265,000 265,000 247,968 (17,032)
Foreign fire tax - - 282,778 282,778
Real estate transfer tax 3,100,000 3,100,000 3,888,522 788,522
Total Other Taxes 29,208,588 29,208,588 29,124,204 (84,384)
Total Taxes 59,299,516 59,299,516 58,812,954 (486,562)
Licenses and Permits
Vehicle licenses 2,850,000 2,850,000 2,641,402 (208,598)
Business licenses 50,000 50,000 83,627 33,627
Bed and breakfast licenses 150 150 - (150)
Collection box license 2,500 2,500 3,000 500
Pet licenses 28,000 28,000 30,920 2,920
Contractor licenses 150,000 150,000 113,950 (36,050)
Rooming house licenses 215,000 215,000 136,330 (78,670)
Liquor licenses 500,000 500,000 482,590 (17,410)
One-day liquor licenses 12,000 12,000 7,191 (4,809)
Farmer's market licenses 50,000 50,000 43,746 (6,254)
Rental building register 75,000 75,000 159,788 84,788
Other licenses 20,000 20,000 14,101 (5,899)
Long-term care license 120,000 120,000 98,640 (21,360)
Seasonal foot ESTB 20,000 20,000 14,323 (5,677)
Mobile food vehicle license 1,000 1,000 1,077 77
Hen coop license 800 800 982 182
Resident care home license 600 600 1,180 580
Building permits 9,232,000 9,232,000 6,317,593 (2,914,407)
Plumbing permits 200,000 200,000 124,845 (75,155)
Electrical permits 300,000 300,000 167,060 (132,940)
Signs and awnings 10,000 10,000 6,111 (3,889)
Other/miscellaneous permits 475,000 475,000 399,336 (75,664)
Elevator permits 30,000 30,000 47,391 17,391
Heating vent/AC permits 700,000 700,000 380,367 (319,633)
Right of way permits 450,000 450,000 341,488 (108,512)
(This schedule is continued on the following pages.)
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CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues - Continued
Licenses and Permits - Continued
Property cleaning permit 20,000$ 20,000$ 460$ (19,540)$
Residents parking permit 128,000 128,000 91,419 (36,581)
Visitor parking permit 13,000 13,000 14,534 1,534
Fire suppression/alarm permit 110,000 110,000 100,484 (9,516)
Annual sign fees 20,000 20,000 30,692 10,692
Moving van permit 50,000 50,000 33,600 (16,400)
Plat PR. and Sign approval HRG fees 2,100 2,100 1,400 (700)
IL Bell franchise fee - - 200,683 200,683
Alarm panel franchise fee 4,000 4,000 630 (3,370)
Northwestern University easement - - 47,000 47,000
Cable franchise fee 1,200,000 1,200,000 1,033,174 (166,826)
PEG fees - Comcast 145,000 145,000 153,521 8,521
Nicor franchise fee 75,000 75,000 32,975 (42,025)
Total Licenses and Permits 17,259,150 17,259,150 13,357,610 (3,901,540)
Intergovernmental - Revenue from Other Agencies
Retailer and service occupation tax 10,942,386 10,942,386 9,948,542 (993,844)
State income tax 7,800,000 7,800,000 6,767,021 (1,032,979)
State highway maintenance 68,000 68,000 74,082 6,082
Health Department Basic Service Grant 76,000 76,000 76,181 181
Summer food inspections 200 200 300 100
Illinois tobacco free community 26,000 26,000 20,911 (5,089)
IL HIV Surveillance Grant 4,000 4,000 3,208 (792)
Childhood Lead Poisoning Grant 2,000 2,000 2,007 7
Other State/County Grant 51,000 51,000 151,808 100,808
Tanning parlor inspection 300 300 - (300)
Fire Department training 6,000 6,000 - (6,000)
CRI Grant 14,100 14,100 42,080 27,980
PEHP Grant 30,000 30,000 55,727 25,727
Leadbase Paint Control Grant 100,000 100,000 22,580 (77,420)
Federal Grant/Aid 228,000 228,000 509,281 281,281
Commission on Aging Grant - Advocate 80,000 80,000 124,506 44,506
Civil Defense Grants (F.E.M.A.)- - 4,320 4,320
Police training 5,000 5,000 - (5,000)
Police DUI Reimbursement 15,000 15,000 16,356 1,356
HUD Emergency Shelter Grant 135,000 135,000 127,374 (7,626)
Other Federal Aid 42,865 42,865 38,035 (4,830)
Youth Organization Umbrella Grant 40,000 40,000 40,375 375
Total Intergovernmental - Revenue from Other Agencies 19,665,851 19,665,851 18,024,694 (1,641,157)
Charges for Services
Recreation
Recreation - program 5,647,895 5,647,895 5,470,882 (177,013)
Recreation - charges 3,000 3,000 154 (2,846)
Recreation - unreconciled 25,500 25,500 28,992 3,492
Total Recreation Revenue 5,676,395 5,676,395 5,500,028 (176,367)
(This schedule is continued on the following pages.)
- 91 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues - Continued
Charges for Services (Continued)
Other Charges for Services
Health Clinic Fees - food establishment 190,000$ 190,000$ 221,909$ 31,909$
Temporary license fee 7,500 7,500 9,988 2,488
Food delivery vehicle 5,000 5,000 4,700 (300)
Beverage snack vending machine 30,000 30,000 50,399 20,399
Tobacco license 17,000 17,000 12,272 (4,728)
Beekeeper license - - 200 200
Birth and death records - - 2,219 2,219
Birth certificate 95,000 95,000 113,069 18,069
Death certificate 36,000 36,000 22,006 (13,994)
Funeral director license 6,300 6,300 10,208 3,908
Temp funeral director licenses 4,000 4,000 1,909 (2,091)
Parking meter fee increase 640,000 640,000 640,000 -
Parking enforcement Reimbursement - - 22,214 22,214
Weights and exact measures examinations 1,200 1,200 - (1,200)
Senior Taxi coupon sales 100,000 100,000 125,183 25,183
Fire cost recovery charge 1,000 1,000 2,120 1,120
Historic preservation 8,000 8,000 9,865 1,865
Tree preservation revenue 3,500 3,500 19,074 15,574
Ambulance service 1,750,000 1,750,000 1,517,615 (232,385)
Towing charges 1,000 1,000 - (1,000)
Police report fees 20,000 20,000 27,708 7,708
Wood recycling 40,000 40,000 - (40,000)
Zoning fees 60,000 60,000 65,661 5,661
Fire building inspections 100 100 - (100)
Fire report fee 9,000 9,000 25,553 16,553
Passport processing Fee 6,000 6,000 31,854 25,854
Alarm panel subscription fees 125,000 125,000 109,498 (15,502)
Skokie animal board fee 8,000 8,000 - (8,000)
Background check daycare providers 400 400 552 152
New pavement degradation 10,000 10,000 127,156 117,156
I Heart Evanston Trees project 10,000 10,000 2,068 (7,932)
Plan review 5,000 5,000 4,917 (83)
Total Other Service Charges 3,189,000 3,189,000 3,179,917 (9,083)
Total Charges for Services 8,865,395 8,865,395 8,679,945 (185,450)
Fines
Ticket fines - parking 2,750,000 2,750,000 2,591,978 (158,022)
Regular fines 115,000 115,000 106,545 (8,455)
Building code violations - - 1,501 1,501
Animal ordinance penalties 15,000 15,000 2,105 (12,895)
Boot release fee 45,000 45,000 51,587 6,587
Fire false alarm fines 115,000 115,000 84,705 (30,295)
Police CTA detail 400,000 400,000 386,144 (13,856)
Police false alarm fines - - 51,215 51,215
Housing code violation fines 65,000 - 34,402 34,402
Permit penalty fees 8,000 8,000 4,111 (3,889)
Administrative adjudication fee 250,000 250,000 153,400 (96,600)
Total Fines 3,763,000 3,698,000 3,467,693 (230,307)
(This schedule is continued on the following page.)
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CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues - Continued
Investment Income 50,100$ 50,100$ 38,558$ (11,542)$
Other Revenues
Police equipment reimbursement 4,500 4,500 13,833 9,333
Aging well revenue - - 1,400 1,400
Holiday food drive 10,000 10,000 11,250 1,250
Women Out Walking 5,000 5,000 4,024 (976)
Property sales and rentals 103,100 103,100 141,926 38,826
Donation 31,400 31,400 77,325 45,925
Damage to City signage 2,000 2,000 - (2,000)
Damage to City traffic signal 20,000 20,000 - (20,000)
Damage to street lights 10,000 10,000 - (10,000)
Miscellaneous revenue 398,996 398,996 807,564 408,568
Market Link vouchers 15,000 15,000 27,620 12,620
Sale of other assets 70,550 70,550 2,697 (67,853)
Reimbursements - serve and protect 4,000 4,000 34,216 30,216
Reimbursements - sale use 75,000 75,000 17,650 (57,350)
Reimbursements - fire department 75,000 75,000 58,357 (16,643)
Payment in lieu of taxes 267,000 267,000 178,312 (88,688)
Fund balance applied 1,016,000 1,016,000 - (1,016,000)
Chargeback revenue - - 413,796 413,796
Private Elm Trees Insurance 41,000 41,000 40,290 (710)
Citizens CPR class fees 6,500 6,500 11,375 4,875
Parking permits - Ryan Field 15,000 15,000 16,472 1,472
Total Other Revenues 2,170,046 2,170,046 1,858,107 (311,939)
Total Revenues 111,073,058$ 111,008,058$ 104,239,561$ (6,768,497)$
(See independent auditor's report.)
- 93 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Expenditures - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original Final
Budget Budget Actual Variance
Expenditures
General Management and Support
City Council 495,897$ 495,897$ 495,880$ (17)$
City Manager and Budget Management 6,610,871 6,610,871 6,153,913 (456,958)
City Clerk 271,429 271,429 247,134 (24,295)
Law Department 835,146 835,146 753,141 (82,005)
Administrative Services 9,576,550 9,576,550 9,189,835 (386,715)
Total General Management and Support 17,789,893 17,789,893 16,839,903 (949,990)
Public Safety
Police 38,111,146 38,111,146 38,954,351 843,205
Fire 24,288,206 24,288,206 24,489,911 201,705
Total Public Safety 62,399,352 62,399,352 63,444,262 1,044,910
Public Works
Public Works Director 3,939,132 3,939,132 3,191,443 (747,689)
Municipal Service Center 2,310,937 2,310,937 2,082,087 (228,850)
City Engineer 370,806 370,806 347,176 (23,630)
Traffic Engineer 4,306,101 4,306,101 4,171,379 (134,722)
Streets 3,824,528 3,824,528 3,032,200 (792,328)
Sanitation 210,493 210,493 208,178 (2,315)
Total Public Works 14,961,997 14,961,997 13,032,463 (1,929,534)
Health and Human Services Development
Health and Human Services Director 370,173 370,173 389,373 19,200
Health Department 1,895,236 1,895,236 1,590,240 (304,996)
Mental Health and Community Purchased Services 415,253 415,253 190,296 (224,957)
Human Relations 859,153 859,153 940,789 81,636
Total Health and Human Services Development 3,539,815 3,539,815 3,110,698 (429,117)
Recreation and Cultural Opportunities
Recreation 11,010,222 11,010,222 11,188,390 178,168
Ecology Center 502,676 502,676 502,793 117
Cultural Arts 740,482 740,482 680,176 (60,306)
Total Recreation and Cultural Opportunities 12,253,380 12,253,380 12,371,359 117,979
Housing and Economic Development
Community Development Administration 368,666 368,666 329,612 (39,054)
Planning and Zoning 700,522 700,522 627,826 (72,696)
Housing Rehabilitation and Property Standards 1 1 - (1)
Building Code Compliance 1,678,639 1,678,639 1,578,706 (99,933)
Total Housing and Economic Development 2,747,828 2,747,828 2,536,144 (211,684)
Total Expenditures 113,692,265$ 113,692,265$ 111,334,829$ (2,357,436)$
(See independent auditor's report.)
- 94 -
CITY OF EVANSTON, ILLINOIS
General Obligation Debt Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual
Taxes
Property taxes
Current year levy, net 10,879,993$ 10,793,952$
Prior year levy, net - 3,459
Investment income 1,500 36,782
Miscellaneous Revenue - 83,293
Total Revenues 10,881,493 10,917,486
General management and support - 98,350
Debt Service
Principal 19,663,863 19,253,327
Interest 3,872,024 3,846,469
Fiscal agent fees 120,250 2,218
Total Expenditures 23,656,137 23,200,364
Excess (Deficiency) of Revenues
Over Expenditures (12,774,644) (12,282,878)
Issuance of bonds - 8,481,464
Premium on bond issuances - 401,638
Transfers in 3,244,144 2,895,561
Total Other Financing Sources (Uses)3,244,144 11,778,663
Net Changes in Fund Balances (9,530,500)$ (504,215)
Fund Balances
Beginning of Year 745,996
End of Year 241,781$
Revenues
Expenditures
Other Financing Sources (Uses)
(See independent auditor's report.)
- 95 -
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures
for a particular purpose.
Motor Fuel Tax - to account for the operation of street maintenance programs and capital projects as
authorized by the Illinois Department of Transportation. Financing is provided by the City’s share of
gasoline taxes.
Economic Development - to account for the cost associated with economic development activities of the
City. Financing is provided primarily by Hotel Tax revenues.
Emergency Telephone System - to account for revenues and expenditures for 911 emergency telephone
service. Financing provided by network connection surcharges.
Neighborhood Improvement - to account for a portion of the sales tax revenues derived from retail sales
of the Home Depot U.S.A. Inc. store in the City. Sales tax revenues allocated to this fund are to be
expended on public projects that will benefit the immediate neighborhood of the store.
Affordable Housing - to account for costs associated with housing-related programs of the City.
HOME - to account for the activity of the HOME program. Financing is provided by the federal
government. Expenditures are made in accordance with the requirements of federal law.
Community Development Block Grant - to account for revenues and expenditures of the Community
Block Grant program. Financing is provided by the federal government on a reimbursement basis in
accordance with federal formula. Expenditures are made in accordance with the requirements of federal
law.
Community Development Loan - to account for residential rehabilitation loans to residents.
Neighborhood Stabilization Program 2 - funded by the American Recovery and Reinvestment Act of
2009 to stabilize neighborhoods that have been negatively impacted by high numbers of foreclosed and
vacant homes.
Special Service District No. 4 - to account for promotion, advertisement, and street maintenance costs of
the area located in the City’s central business district. Financing is provided by the City through an annual
property tax levy.
Good Neighbor - to account for the resources provided by Northwestern University to assist City
functions and increase programming.
General Assistance - to account for the assistance given to persons and/or families to meet their basic
living expenses.
Debt Service Funds
Debt Service Funds are used to account for the servicing of general long-term debt.
Chicago Main TIF - To account for principal and interest payments on debt proceeds issued and allocated
to this tax increment financing district.
Special Service Area No. 6 Fund - to account for promotion, advertisement, and street maintenance costs
of the area located in the City's commercial district surrounding Dempster, Chicago, and Main. Financing
is provided by the City through an annual special service area property tax levy.
Howard Hartrey TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Washington National TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Dempster-Dodge TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Howard/Ridge TIF- To account for principal and interest payments on debt proceeds issued and allocated
to this tax increment financing district.
West Evanston TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Capital Projects Funds
Capital Improvement - To account for capital projects not funded through special revenue, tax increment
financing, or enterprise funds. Capital projects include, but are not limited to: long-term improvements to
public buildings, the paving of city streets, and the improvement and development of recreation facilities.
Financing is provided primarily by grants and general obligation bond proceeds.
Special Assessment - To account for capital improvements (primarily alley paving) financed by both
special assessments on property owners and City contributions.
Crown Capital - To account for capital improvements (primarily alley paving) financed by both special
assessments on property owners and City contributions.
CITY OF EVANSTON, ILLINOIS
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Emergency
Motor Fuel Telephone Neighborhood Affordable
Tax System Improvement Housing
Cash and equivalents -$ -$ 170,171$ 1,139,051$
Investments 2,209,142 655,571 - 369,294
Receivables
Property tax - - - -
Notes - - - 1,100,240
Special assessments - - - -
Other - - - -
Due from other governments 164,588 310,049 - -
Due from component unit - - - -
Due from other funds - - - -
Advances to other funds - - - -
Total Assets 2,373,730$ 965,620$ 170,171$ 2,608,585$
Liabilities
Vouchers payable -$ 20,184$ -$ 31,801$
Due to other governments - - - -
Due to component unit - - - -
Due to other funds - 763,440 - -
Advances from other funds - - - -
Unearned revenue - - - -
Total Liabilities - 783,624 - 31,801
Deferred Inflows of Resources
Long-term notes receivable - - - 1,100,240
Unavailable revenue - property taxes - - - -
Total Deferred Inflows of Resources - - - 1,100,240
Total Liabilities and Deferred Inflows of Resources - 783,624 - 1,132,041
Fund Balances
Restricted for
Highway Maintenance 2,373,730 - - -
Emergency Telephone System - 181,996 - -
HUD Approved Projects - - - -
Neighborhood Improvements - - 170,171 1,476,544
Debt Service - - - -
Township - - - -
Committed - - - -
Assigned - - - -
Unassigned (deficit)- - - -
Total Fund Balances (Deficit)2,373,730 181,996 170,171 1,476,544
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 2,373,730$ 965,620$ 170,171$ 2,608,585$
Assets
Special Revenue
- 96 -
Special
Community Community Neighborhood Service Total
Development Development Stabilization District Good General Special
HOME Block Grant Loan Program 2 No. 4 Neighbor Assistance Revenue
8,284$ -$ 151,603$ 94,969$ -$ 1,001,884$ 629,955$ 3,195,917$
- - - - - - 14,955 3,248,962
- - - - 370,000 - 900,000 1,270,000
5,008,706 196,352 1,830,122 - - - - 8,135,420
- - - - - - - -
- - - - - - - -
41,541 251,940 - - - - - 768,118
- - - - - - - -
- - 132,009 - - - - 132,009
- - - - - - - -
5,058,531$ 448,292$ 2,113,734$ 94,969$ 370,000$ 1,001,884$ 1,544,910$ 16,750,426$
40,548$ 55,824$ 31,000$ -$ -$ -$ 411$ 179,768$
- - - 94,969 - - - 94,969
- - - - - - - -
- 132,009 - - 198,794 - - 1,094,243
- - - - - - - -
- - - - - 1,000,000 - 1,000,000
40,548 187,833 31,000 94,969 198,794 1,000,000 411 2,368,980
5,008,706 196,352 1,830,122 - - - - 8,135,420
- - - - 370,000 - 900,000 1,270,000
5,008,706 196,352 1,830,122 - 370,000 - 900,000 9,405,420
5,049,254 384,185 1,861,122 94,969 568,794 1,000,000 900,411 11,774,400
- - - - - - - 2,373,730
- - - - - - - 181,996
9,277 64,107 252,612 - - - - 325,996
- - - - - - - 1,646,715
- - - - - - - -
- - - - - - 644,499 644,499
- - - - - - - -
- - - - - 1,884 - 1,884
- - - - (198,794) - - (198,794)
9,277 64,107 252,612 - (198,794) 1,884 644,499 4,976,026
5,058,531$ 448,292$ 2,113,734$ 94,969$ 370,000$ 1,001,884$ 1,544,910$ 16,750,426$
Special Revenue
(This schedule is continued on the following pages.)
- 97 -
CITY OF EVANSTON, ILLINOIS
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2017
Chicago Main Special Howard Hartrey Washington National
Tax Service Tax Tax
Increment Area Increment Increment
District No. 6 District District
Cash and equivalents 1,342$ 2,207$ -$ -$
Investments - - - 4,769,451
Receivables
Property tax - 221,000 - -
Notes - - - -
Special assessments - - - -
Other - - - -
Due from other governments - - - -
Due from component unit - - - -
Due from other funds 60,000 - - 493,237
Advances to other funds - - - -
Total Assets 61,342$ 223,207$ -$ 5,262,688$
Liabilities
Vouchers payable 149$ -$ -$ 144$
Due to other governments - - - -
Due to component unit - - - -
Due to other funds - - - -
Advances from other funds - - - -
Unearned revenue - - - -
Total Liabilities 149 - - 144
Deferred Inflows of Resources
Long-term notes receivable - - - -
Unavailable revenue - property taxes - 221,000 - -
Total Deferred Inflows of Resources - 221,000 - -
Total Liabilities and Deferred Inflows of Resources 149 221,000 - 144
Fund Balances
Restricted for
Highway Maintenance - - - -
Emergency Telephone System - - - -
HUD Approved Projects - - - -
Neighborhood Improvements - - - -
Debt Service 61,193 - - 5,262,544
Township - - - -
Committed - - - -
Assigned - 2,207 - -
Unassigned (deficit)- - - -
Total Fund Balances (Deficit)61,193 2,207 - 5,262,544
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 61,342$ 223,207$ -$ 5,262,688$
Assets
Debt Service
- 98 -
Dempster-Dodge Howard Ridge West Evanston Special Total
Tax Tax Tax Total Assessment Total Nonmajor
Increment Increment Increment Debt Capital Capital Crown Capital Governmental
District District District Service Improvements Projects Capital Projects Funds
-$ -$ -$ 3,549$ 3,327,740$ 2,766,446$ 540,861$ 6,635,047$ 9,834,513$
- 11,144 514,730 5,295,325 9,418,978 224,099 - 9,643,077 18,187,364
- - - 221,000 - - - - 1,491,000
- - - - - - - - 8,135,420
- - - - - 616,153 - 616,153 616,153
- - - - 7,840 4,281 - 12,121 12,121
- - - - - 2,874 - 2,874 770,992
- - - - - - - - -
- 262,979 - 816,216 - - - - 948,225
- - - - - - - - -
-$ 274,123$ 514,730$ 6,336,090$ 12,754,558$ 3,613,853$ 540,861$ 16,909,272$ 39,995,788$
-$ 26,745$ 144$ 27,182$ 3,983,291$ -$ -$ 3,983,291$ 4,190,241$
- - - - - - - - 94,969
- - - - 12,794 - - 12,794 12,794
6,009 - 81,820 87,829 - - - - 1,182,072
- - - - - - - - -
- - - - - - - - 1,000,000
6,009 26,745 81,964 115,011 3,996,085 - - 3,996,085 6,480,076
- - - - - 616,153 - 616,153 8,751,573
- - - 221,000 - - - - 1,491,000
- - - 221,000 - 616,153 - 616,153 10,242,573
6,009 26,745 81,964 336,011 3,996,085 616,153 - 4,612,238 16,722,649
- - - - - - - - 2,373,730
- - - - - - - - 181,996
- - - - - - - - 325,996
- - - - - - - - 1,646,715
- 247,378 432,766 6,003,881 - - - - 6,003,881
- - - - - - - - 644,499
- - - - - - - - -
- - - 2,207 8,758,473 2,997,700 540,861 12,297,034 12,301,125
(6,009) - - (6,009) - - - - (204,803)
(6,009) 247,378 432,766 6,000,079 8,758,473 2,997,700 540,861 12,297,034 23,273,139
-$ 274,123$ 514,730$ 6,336,090$ 12,754,558$ 3,613,853$ 540,861$ 16,909,272$ 39,995,788$
Capital ProjectsDebt Service
(See independent auditor's report.)
- 99 -
CITY OF EVANSTON, ILLINOIS
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended December 31, 2017
Emergency
Motor Fuel Economic Telephone Neighborhood Affordable
Tax Development System Improvement Housing
Revenues
Taxes -$ -$ 978,523$ -$ 97,000$
Special assessments - - - - -
Intergovernmental 1,899,884 - - - -
Charges for services - - - - -
Investment income 18,158 - 7,178 256 5,623
Miscellaneous
Contributions - - - - 325,000
Other - - - - 8,056
Total Revenues 1,918,042 - 985,701 256 435,679
Expenditures
Current
General management and support - - - - -
Public safety - - 893,789 - -
Public works - - - - -
Housing and economic development - - - - 360,323
Capital outlay - - - - -
Debt service
Principal - - - - -
Interest - - - - -
Fiscal agent fees - - - - -
Total Expenditures - - 893,789 - 360,323
Excess (Deficiency) of Revenues
Over Expenditures 1,918,042 - 91,912 256 75,356
Other Financing Sources (Uses)
Issuance of bonds - - - - -
Issuance of loans - - - - -
Premium (discount) on bonds issued - - - - -
Transfers in - - - - -
Transfers (out)(957,990) (2,996,226) (72,977) - -
Total Other Financing Sources (Uses)(957,990) (2,996,226) (72,977) - -
Net Change in Fund Balances 960,052 (2,996,226) 18,935 256 75,356
Fund Balances (Deficit), January 1 1,413,678 2,996,226 163,061 169,915 1,401,188
Fund Balances (Deficit), December 31 2,373,730$ -$ 181,996$ 170,171$ 1,476,544$
Special Revenue
- 100 -
Community Community Neighborhood Special Service Total
Development Development Stabilization District Good General Special
HOME Block Grant Loan Program 2 No. 4 Neighbor Assistance Revenue
-$ -$ -$ -$ 322,477$ -$ 933,020$ 2,331,020$
- - - - - - - -
227,450 1,906,708 - 37,641 - - - 4,071,683
- - - - - - - -
5,685 - 3,392 - 5 1,884 1,547 43,728
- - - - - 1,000,000 - 1,325,000
21,820 263 51,369 - - - 33,019 114,527
254,955 1,906,971 54,761 37,641 322,482 1,001,884 967,586 7,885,958
- - - - - - 909,475 909,475
- - - - - - - 893,789
- - - - - - - -
248,055 1,900,376 13,070 33,123 329,000 - - 2,883,947
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
248,055 1,900,376 13,070 33,123 329,000 - 909,475 4,687,211
6,900 6,595 41,691 4,518 (6,518) 1,001,884 58,111 3,198,747
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- (6,594) - (4,518) - (1,000,000) - (5,038,305)
- (6,594) - (4,518) - (1,000,000) - (5,038,305)
6,900 1 41,691 - (6,518) 1,884 58,111 (1,839,558)
2,377 64,106 210,921 - (192,276) - 586,388 6,815,584
9,277$ 64,107$ 252,612$ -$ (198,794)$ 1,884$ 644,499$ 4,976,026$
Special Revenue
(This schedule in continued on the following pages.)
- 101 -
CITY OF EVANSTON, ILLINOIS
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended December 31, 2017
Chicago Main Special Howard Hartrey Washington National
Tax Service Tax Tax
Increment Area Increment Increment
District No. 6 District District
Revenues
Taxes 75,430$ 215,245$ -$ 5,249,949$
Special assessments - - - -
Intergovernmental - - - -
Charges for services - - - -
Investment income 9 22 1,320 45,923
Miscellaneous
Contributions - - - -
Other - - - -
Total Revenues 75,439 215,267 1,320 5,295,872
Expenditures
Current
General management and support - - - -
Public safety - - - -
Public works - - - -
Housing and economic development 582,012 213,354 599,668 100,679
Capital outlay - - - -
Debt service
Principal 3,000,000 - - -
Interest 87,500 - - -
Fiscal agent fees - - - -
Total Expenditures 3,669,512 213,354 599,668 100,679
Excess (Deficiency) of Revenues
Over Expenditures (3,594,073) 1,913 (598,348) 5,195,193
Other Financing Sources (Uses)
Issuance of bonds 2,960,000 - - -
Issuance of loans 520,000 - - -
Premium (discount) on bonds issued 40,189 - - -
Transfers in - - - -
Transfers (out)- (78,000) (45,325) (5,557,325)
Total Other Financing Sources (Uses)3,520,189 (78,000) (45,325) (5,557,325)
Net Change in Fund Balances (73,884) (76,087) (643,673) (362,132)
Fund Balances (Deficit), January 1 135,077 78,294 643,673 5,624,676
Fund Balances (Deficit), December 31 61,193$ 2,207$ -$ 5,262,544$
Debt Service
- 102 -
Dempster-Howard Ridge West Evanston Special Total
Dodge Tax Tax Tax Total Assessment Total Nonmajor
Increment Increment Increment Debt Capital Capital Crown Capital Governmental
District District District Service Improvements Projects Capital Projects Funds
48,001$ 583,827$ 43,503$ 6,215,955$ -$ -$ -$ -$ 8,546,975$
- - - - - 260,307 - 260,307 260,307
- - - - 530,812 - - 530,812 4,602,495
- - - - 33,339 - - 33,339 33,339
1 21 3,898 51,194 56,607 7,911 - 64,518 159,440
- - - - 412,945 - - 412,945 1,737,945
- 32,000 12,339 44,339 5,174 - - 5,174 164,040
48,002 615,848 59,740 6,311,488 1,038,877 268,218 - 1,307,095 15,504,541
- - - - 298,237 6,307 - 304,544 1,214,019
- - - - 9,064 - - 9,064 902,853
- - - - - - 1,008,651 1,008,651 1,008,651
- 307,391 2,007 1,805,111 - - - - 4,689,058
- - - - 14,953,180 - - 14,953,180 14,953,180
2,000,000 - - 5,000,000 - - - - 5,000,000
92,108 995 12,227 192,830 - - - - 192,830
- - - - - - - - -
2,092,108 308,386 14,234 6,997,941 15,260,481 6,307 1,008,651 16,275,439 27,960,591
(2,044,106) 307,462 45,506 (686,453) (14,221,604) 261,911 (1,008,651) (14,968,344) (12,456,050)
2,040,000 - - 5,000,000 10,730,000 - 900,000 11,630,000 16,630,000
- - - 520,000 - - - - 520,000
27,512 - - 67,701 457,736 - - 457,736 525,437
- - - - 1,436,689 - 649,512 2,086,201 2,086,201
- (60,000) (30,000) (5,770,650) (1,149,512) (263,427) - (1,412,939) (12,221,894)
2,067,512 (60,000) (30,000) (182,949) 11,474,913 (263,427) 1,549,512 12,760,998 7,539,744
23,406 247,462 15,506 (869,402) (2,746,691) (1,516) 540,861 (2,207,346) (4,916,306)
(29,415) (84) 417,260 6,869,481 11,505,164 2,999,216 - 14,504,380 28,189,445
(6,009)$ 247,378$ 432,766$ 6,000,079$ 8,758,473$ 2,997,700$ 540,861$ 12,297,034$ 23,273,139$
Debt Service Capital Projects
(See independent auditor's report.)
- 103 -
CITY OF EVANSTON, ILLINOIS
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 1,920,000$ 1,899,884$ (20,116)$
Interest 1,000 18,158 17,158
Total Revenues 1,921,000 1,918,042 (2,958)
Expenditures
Public Works 1,391,000 - (1,391,000)
Excess (Deficiency) of Revenues
Over Expenditures 530,000 1,918,042 1,388,042
Other Financing Sources (Uses)
Transfers (out)(857,990) (957,990) (100,000)
Net Change in Fund Balance (327,990)$ 960,052 1,288,042$
Fund Balances
Beginning of Year 1,413,678
End of Year 2,373,730$
(See independent auditor's report.)
- 104 -
CITY OF EVANSTON, ILLINOIS
Economic Development Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
None -$ -$ -$
Total Revenues - - -
Expenditures
None - - -
Excess (Deficiency) of Revenues
Over Expenditures - - -
Other Financing Sources (Uses)
Transfers (out)- (2,996,226) (2,996,226)
Other Financing Sources (Uses) - Net - (2,996,226) (2,996,226)
Net Change in Fund Balance -$ (2,996,226) (2,996,226)$
Fund Balances
Beginning of Year 2,996,226
End of Year -$
(See independent auditor's report.)
- 105 -
CITY OF EVANSTON, ILLINOIS
Emergency Telephone System Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Taxes and special assessments 1,020,700$ 978,523$ (42,177)$
Interest 1,000 7,178 6,178
Total Revenues 1,021,700 985,701 (35,999)
Expenditures
Public safety 957,441 893,789 (63,652)
Excess (Deficiency) of Revenues
Over Expenditures 64,259 91,912 27,653
Other Financing Sources (Uses)
Transfers (out)(72,977) (72,977) -
Net Change in Fund Balance (8,718)$ 18,935 27,653$
Fund Balance
Beginning of Year 163,061
End of Year 181,996$
(See independent auditor's report.)
- 106 -
CITY OF EVANSTON, ILLINOIS
Neighborhood Improvement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Interest -$ 256$ 256$
Expenditures
Housing and economic development 100,000 - (100,000)
Net Change in Fund Balance (100,000)$ 256 100,256$
Fund Balances
Beginning of Year 169,915
End of Year 170,171$
(See independent auditor's report.)
- 107 -
CITY OF EVANSTON, ILLINOIS
Affordable Housing Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Affordable housing demo tax 50,000$ 97,000$ 47,000$
Developer contributions 125,000 325,000 200,000
Interest 230 5,623 5,393
Miscellaneous 460,600 8,056 (452,544)
Total Revenues 635,830 435,679 (200,151)
Expenditures
Housing and economic development 1,707,252 360,323 (1,346,929)
Net Change in Fund Balance (1,071,422)$ 75,356 1,146,778$
Fund Balance
Beginning of Year 1,401,188
End of Year 1,476,544$
(See independent auditor's report.)
- 108 -
CITY OF EVANSTON, ILLINOIS
HOME Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 585,861$ 227,450$ (358,411)$
Interest - 5,685 5,685
Miscellaneous - 21,820 21,820
Total Revenues 585,861 254,955 (330,906)
Expenditures
Housing and economic development 586,692 248,055 (338,637)
Net Change in Fund Balance (831.00)$ 6,900 7,731$
Fund Balance
Beginning of Year 2,377
End of Year 9,277$
(See independent auditor's report.)
- 109 -
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments
grant from U.S. Department of
Housing and Urban Development 2,272,494$ 1,906,708$ (365,786)$
Miscellaneous - 263 263
Total Revenues 2,272,494 1,906,971 (365,523)
Expenditures
Housing and economic development 1,454,683 1,900,376 445,693
Total Expenditures 1,454,683 1,900,376 445,693
Excess (Deficiency) of Revenues
Over Expenditures 817,811 6,595 (811,216)
Other Financing Sources (Uses)
Transfers (out)(827,295) (6,594) 820,701
Other Financing Sources (Uses) - Net (827,295) (6,594) 820,701
Net Change in Fund Balance (9,484)$ 1 9,485$
Fund Balance
Beginning of Year 64,106
End of Year 64,107$
(See independent auditor's report.)
- 110 -
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Administration/Planning
CDBG administration 863,722$ 297,826$ (565,896)$
Total Administration/Planning 863,722 297,826 (565,896)
Economic Development
Evanston Community Development Corporation 175,500 115,000 (60,500)
Total Economic Development 175,500 115,000 (60,500)
Housing
Rehab construction administration 198,821 206,274 7,453
Targeted housing code enforcement - 316,578 316,578
Total Housing 198,821 522,852 324,031
Neighborhood Revitalization
Street resurfacing - 249,682 249,682
Snap lighting - 45,376 45,376
Ridgeville Reba Park project - 76,127 76,127
Alley improvement/paving program - 223,245 223,245
Over the rainbow - 50,000 50,000
CJE senior life - 9,875 9,875
YOU - 33,412 33,412
Special assessments - 860 860
Total Neighborhood Revitalization - 688,577 688,577
Public Services
Moran/Defender - 21,800 21,800
Evanston Legal Services - 7,000 7,000
Youth Job Center of Evanston - 21,800 21,800
City/Cert. of Rehab & Records - 30,000 30,000
Summer youth - 22,000 22,000
YWCA Domestic Violence - 24,800 24,800
Connection for Homeless - 15,100 15,100
Family Focus - 15,000 15,000
Children's Home + Aid - 7,000 7,000
Meals at Home - 14,700 14,700
North Shore Senior Center - 10,500 10,500
Evanston Schoars - 5,200 5,200
Open Studio Art - 4,000 4,000
Open Communities - 7,500 7,500
Interfaith Housing Program - Homeshare - 12,500 12,500
Graffiti - 41,921 41,921
Iwork/hous options - 15,300 15,300
Contributions to other agencies 216,640 - (216,640)
Total Public Services 216,640 276,121 59,481
Total Expenditures 1,454,683$ 1,900,376$ 445,693$
(See independent auditor's report.)
- 111 -
CITY OF EVANSTON, ILLINOIS
Community Development Loan Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Interest -$ 3,392$ 3,392$
Miscellaneous 293,000 51,369 (241,631)
Total Revenues 293,000 54,761 (238,239)
Expenditures
Housing and economic development 293,000 13,070 (279,930)
Net Change in Fund Balance -$ 41,691 41,691$
Fund Balances
Beginning of Year 210,921
End of Year 252,612$
(See independent auditor's report.)
- 112 -
CITY OF EVANSTON, ILLINOIS
Neighborhood Stabilization Program 2 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 139,500$ 37,641$ (101,859)$
Total Revenues 139,500 37,641 (101,859)
Expenditures
Housing and economic development 94,381 33,123 (61,258)
Excess (Deficiency) of Revenues
Over Expenditures 45,119 4,518 (40,601)
Other Financing Sources (Uses)
Transfers (out)
Transfers to Debt Service Fund (4,518) (4,518) -
Total Other Financing Sources (Uses)(4,518) (4,518) -
Net Change in Fund Balance 40,601$ - (40,601)$
Fund Balances
Beginning of Year -
End of Year -$
(See independent auditor's report.)
- 113 -
CITY OF EVANSTON, ILLINOIS
Special Service District No. 4 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Property taxes
Current year 320,000$ 322,477$ 2,477$
Investment income - 5 5
Total Revenues 320,000 322,482 2,482
Expenditures
Housing and economic development 320,000 329,000 9,000
Net Change in Fund Balance -$ (6,518) (6,518)$
Fund Balance
Beginning of Year (192,276)
End of Year (198,794)$
(See independent auditor's report.)
- 114 -
CITY OF EVANSTON, ILLINOIS
Good Neighbor Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Miscellaneous 1,000,000$ 1,000,000$ -$
Investment income - 1,884 1,884
Total Revenues 1,000,000 1,001,884 1,884
Expenditures
Housing and economic development - - -
Excess (Deficiency) of Revenues
Over Expenditures 1,000,000 1,001,884 1,884
Other Financing Sources (Uses)
Transfers (out)(1,000,000) (1,000,000) -
Other Financing Sources (Uses) - Net (1,000,000) (1,000,000) -
Net Change in Fund Balance -$ 1,884 1,884$
Fund Balance
Beginning of Year -
End of Year 1,884$
(See independent auditor's report.)
- 115 -
CITY OF EVANSTON, ILLINOIS
General Assistance Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Property taxes 900,000$ 933,020$ 33,020$
Investment income 1,000 1,547 547
Miscellaneous 25,000 33,019 8,019
Total Revenues 926,000 967,586 41,586
Expenditures
General management and support 1,178,971 909,475 (269,496)
Net Change in Fund Balance (252,971)$ 58,111 311,082$
Fund Balance
Beginning of Year 586,388
Ending 644,499$
(See independent auditor's report.)
- 116 -
CITY OF EVANSTON, ILLINOIS
Capital Improvements Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 1,920,000$ 530,812$ (1,389,188)$
Charges for services - 33,339 33,339
Investment income - 56,607 56,607
Miscellaneous - 5,174 5,174
Contributions - 412,945 412,945
Total Revenues 1,920,000 1,038,877 (881,123)
Expenditures
General management and support - 298,237 298,237
Public safety - 9,064 9,064
Capital outlay 28,630,782 14,953,180 (13,677,602)
Total Expenditures 28,630,782 15,260,481 (13,370,301)
Excess (Deficiency) of Revenues
Over Expenditures (26,710,782) (14,221,604) 12,489,178
Other Financing Sources (Uses)
Issuance of bonds 12,295,000 10,730,000 (1,565,000)
Premium on issuance of bonds - 457,736 457,736
Transfers in 7,710,000 1,436,689 (6,273,311)
Transfers (out)(500,000) (1,149,512) (649,512)
Total Other Financing Sources (Uses)19,505,000 11,474,913 (8,030,087)
Net Change in Fund Balance (7,205,782)$ (2,746,691) 4,459,091$
Fund Balances
Beginning of Year 11,505,164
End of Year 8,758,473$
(See independent auditor's report.)
- 117 -
CITY OF EVANSTON, ILLINOIS
Crown Capital Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
None -$ -$ -$
Total Revenues - - -
Expenditures
Public works 1,377,730 1,008,651 (369,079)
Excess (Deficiency) of Revenues
Over Expenditures (1,377,730) (1,008,651) 369,079
Other Financing Sources (Uses)
Issuance of bonds - 900,000 900,000
Transfers in - 649,512 649,512
Total Other Financing Sources (Uses)- 1,549,512 1,549,512
Net Change in Fund Balance (1,377,730)$ 540,861 1,918,591$
Fund Balances
Beginning of Year -
End of Year 540,861$
(See independent auditor's report.)
- 118 -
CITY OF EVANSTON, ILLINOIS
Special Assessment Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Revenues
Special assessments 230,000$ 260,307$ 30,307$
Investment income 1,200 7,911 6,711
Total Revenues 231,200 268,218 37,018
Expenditures
Current
General management and support - 6,307 6,307
Total Expenditures - 6,307 6,307
Excess (Deficiency) of Revenues
Over Expenditures 231,200 261,911 30,711
Other Financing Sources (Uses)
Issuance of bonds 250,000 - (250,000)
Premium on issuance of bonds - - -
Transfers (out)(513,427) (263,427) 250,000
Other Financing Sources (Uses) - Net (263,427) (263,427) -
Net Change in Fund Balance (32,227)$ (1,516) 30,711$
Fund Balance
Beginning of Year 2,999,216
End of Year 2,997,700$
(See independent auditor's report.)
- 119 -
CITY OF EVANSTON, ILLINOIS
Debt Service Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and Original and Original and
Final Budget Actual Final Budget Actual Final Budget Actual
Taxes
Property taxes -$ 75,430$ 220,000$ 215,245$ -$ -$
Investment income - 9 500 22 - 1,320
Miscellaneous - - - - - -
Total Revenues - 75,439 220,500 215,267 - 1,320
Housing and economic
development 3,580,000 582,012 290,730 213,354 - 599,668
Debt Service
Principal - 3,000,000 - - - -
Interest 60,000 87,500 - - - -
Total Expenditures 3,640,000 3,669,512 290,730 213,354 - 599,668
Excess (Deficiency) of Revenues
Over Expenditures (3,640,000) (3,594,073) (70,230) 1,913 - (598,348)
Issuance of bonds - 2,960,000 - - - -
Issuance of loans - 520,000 - - - -
Premium (discount) on bonds issued - 40,189 - - - -
Transfers in (out)-
General - - - (78,000) - -
Capital improvement - - - - - -
Other - - - - (599,667) (45,325)
Total Other Financing Sources (Uses)- 3,520,189 - (78,000) (599,667) (45,325)
Net Changes in Fund Balances (3,640,000)$ (73,884) (70,230)$ (76,087) (599,667)$ (643,673)
Fund Balances (Deficit)
Beginning of Year 135,077 78,294 643,673
End of Year 61,193$ 2,207$ -$
Chicago Main Tax
Increment District
Other Financing Sources (Uses)
No. 6 Increment District
Special Service Area Howard Hartrey Tax
Expenditures
Revenues
- 120 -
Original and Original and Original and Original and Original and
Final Budget Actual Final Budget Actual Final Budget Actual Final Budget Actual Final Budget Actual
5,145,000$ 5,249,949$ -$ 48,001$ 555,000$ 583,827$ -$ 43,503$ 5,920,000$ 6,215,955$
10,000 45,923 - 1 400 21 150 3,898 11,050 51,194
- - - - 130,000 32,000 - 12,339 130,000 44,339
5,155,000 5,295,872 - 48,002 685,400 615,848 150 59,740 6,061,050 6,311,488
600,000 100,679 - - 1,538,000 307,391 - 2,007 6,008,730 1,805,111
- - 2,004,000 2,000,000 - - - - 2,004,000 5,000,000
- - 40,000 92,108 600 995 10,000 12,227 110,600 192,830
600,000 100,679 2,044,000 2,092,108 1,538,600 308,386 10,000 14,234 8,123,330 6,997,941
4,555,000 5,195,193 (2,044,000) (2,044,106) (853,200) 307,462 (9,850) 45,506 (2,062,280) (686,453)
- - 50,000 2,040,000 - - - - 50,000 5,000,000
- - - - - - - - - 520,000
- - - 27,512 - - - - - 67,701
(350,000) (500,000) - - (60,000) (60,000) (30,000) (30,000) (440,000) (668,000)
(5,470,000) (936,689) - - - - - - (5,470,000) (936,689)
(4,120,636) (4,120,636) - - - - - - (4,720,303) (4,165,961)
(9,940,636) (5,557,325) 50,000 2,067,512 (60,000) (60,000) (30,000) (30,000) (10,580,303) (182,949)
(5,385,636)$ (362,132) (1,994,000)$ 23,406 (913,200)$ 247,462 (39,850)$ 15,506 (12,642,583)$ (869,402)
5,624,676 (29,415) (84) 417,260 6,869,481
5,262,544$ (6,009)$ 247,378$ 432,766$ 6,000,079$
Increment District Increment District Total
Howard Ridge Tax West Evanston Tax
Increment District
National Tax Dempster-Dodge Tax
Increment District
Washington
(See independent auditor's report.)
- 121 -
ENTERPRISE FUNDS
Water Fund - To account for all activity related to providing water to the City’s residents, as well as the
Village of Skokie 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, debt
service, and billing/collection.
Sewer Fund - To account for all activity related to providing sewer service to the City’s residents and
businesses. Activities necessary to provide such service include, but are not limited to: administration,
operations, financing, capital improvements/maintenance, and billing/collection.
Parking Fund - To account for all city-owned parking facilities/garages, lots, and metered spaces. Maple
Avenue and Sherman Plaza Garage activities have been included in this fund beginning in FY09-10. All
activities are accounted for including administration, operations, financing, and revenue collection.
Solid Waste Fund - To account for all activity related to refuse, recycling, and yard waste collection and
disposal. Activities necessary to provide such service include, but are not limited to: administration,
operations, and revenue collection.
CITY OF EVANSTON, ILLINOIS
Water Fund
Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual
Operating Revenues
Charges for services 17,274,000$ 16,983,549$
Miscellaneous 519,400 604,247
Total Operating Revenues 17,793,400 17,587,796
Operating Expenses Excluding Depreciation
Administration 1,090,255 1,588,801
Operations
Pumping 2,533,492 2,434,814
Filtration 2,656,063 2,242,524
Distribution 16,963,651 2,354,563
Meter maintenance - 228
Other 1,310,017 479,462
Total Operating Expenses Excluding Depreciation 24,553,478 9,100,392
Operating Income (Loss) Before Depreciation (6,760,078) 8,487,404
Depreciation - 2,470,280
Operating Income (Loss)(6,760,078) 6,017,124
Non-Operating Revenue (Expenses)
Investment income 1,600 35,784
Interest expense (395,115) (668,363)
Gain on disposal of capital assets - 203,532
Total Non-Operating Revenues (Expenses)(393,515) (429,047)
Income (Loss) Before Transfers (7,153,593) 5,588,077
Transfers
Transfers (out)(3,369,559) (6,194,560)
Total Transfers (3,369,559) (6,194,560)
Net Income (Loss)(10,523,152)$ (606,483)
Net Position
Beginning of Year 70,470,424
End of Year 69,863,941$
(See independent auditor's report.)
- 122 -
CITY OF EVANSTON, ILLINOIS
Water Fund - Operation and Maintenance Account
Schedule of Operating Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual
Charges for Services, Net
Water Sales
Evanston 7,274,000$ 7,448,975$
Skokie 4,000,000 3,635,940
Northwest Water Commission 6,000,000 5,898,634
Total Charges for Services 17,274,000 16,983,549
Miscellaneous
Fees and outside work 36,000 49,220
Fees, merchandise, and other 483,400 555,027
Total Miscellaneous 519,400 604,247
Total Operating Revenues 17,793,400$ 17,587,796$
(See independent auditor's report.)
- 123 -
INTERNAL SERVICE FUNDS
Equipment Replacement Fund - To account for the costs associated with the purchase of vehicles and
equipment.
Fleet Services Fund - To account for the cost of operating the municipal service center maintenance
facility for transportation vehicles/equipment used by city departments. Such costs are billed to the user
departments.
Insurance Fund - To account for all costs related to general liability and workers' compensation claims.
Beginning with FY10-11, health insurance premiums are also accounted for in this fund. This internal
service fund uses “funding premium” payments from city operating funds to pay claim and premium costs
incurred.
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Net Position
December 31, 2017
Equipment
Replacement Fleet Services Insurance Total
Current Assets
Cash and cash equivalents 1,186,577$ 320,046$ 70,000$ 1,576,623$
Receivables - other 16,810 - - 16,810
Inventories - 963,433 - 963,433
Prepaid items - - 1,505,795 1,505,795
Due from other governments - 6,238 - 6,238
Due from other funds 67,438 - - 67,438
Total Current Assets 1,270,825 1,289,717 1,575,795 4,136,337
Capital Assets
Capital assets being depreciated 23,997,641 617,552 - 24,615,193
Accumulated depreciation (16,103,512) (617,447) - (16,720,959)
Total Capital Assets 7,894,129 105 - 7,894,234
Total Assets 9,164,954 1,289,822 1,575,795 12,030,571
Current Liabilities
Vouchers payable 122,624 126,289 1,531,907 1,780,820
Due to other funds 298,682 625,000 66,202 989,884
Compensated absences payable - 21,193 5,738 26,931
Claims payable - - 1,477,000 1,477,000
Total Current Liabilities 421,306 772,482 3,080,847 4,274,635
Long-Term Liabilities
Compensated absences payable - 84,771 22,953 107,724
OPEB liability - 91,121 - 91,121
Claims payable - - 2,810,500 2,810,500
Total Long-Term Liabilities - 175,892 2,833,453 3,009,345
Total Liabilities 421,306 948,374 5,914,300 7,283,980
Net Position (Deficit)
Net investment in capital assets 7,894,129 105 - 7,894,234
Unrestricted (deficit)849,519 341,343 (4,338,505) (3,147,643)
Total Net Position (Deficit)8,743,648$ 341,448$ (4,338,505)$ 4,746,591$
(See independent auditor's report.)
- 124 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
For the Fiscal Year Ended December 31, 2017
Equipment
Replacement Fleet Services Insurance Total
Operating Revenues
Charges for services
General Fund 1,180,488$ 1,801,059$ 2,281,864$ 5,263,411$
Sewer Fund - 192,213 269,988 462,201
Solid Waste 182,445 322,362 - 504,807
Water Fund - 132,754 468,492 601,246
Motor Vehicle Parking System Fund 30,900 23,783 319,648 374,331
Library Fund 4,885 5,440 - 10,325
Emergency Telephone System - - 17,448 17,448
Economic Development - - 17,448 17,448
Community Development Block Grant 1,339 824 17,448 19,611
HOME - - 820 820
Claims reimbursements - - 102,934 102,934
Health insurance contributions
Contributions from other funds - - 10,907,595 10,907,595
Employee contributions - - 2,806,557 2,806,557
Other contributions - - 522,849 522,849
Miscellaneous - 19,016 - 19,016
Total Operating Revenues 1,400,057 2,497,451 17,733,091 21,630,599
Operating Expenses
General support - 1,168,869 571,379 1,740,248
Major maintenance 74,539 1,722,489 - 1,797,028
General liability claims - - 3,130,571 3,130,571
Workers' compensation claims - - 2,653,980 2,653,980
Health insurance premiums - - 15,009,393 15,009,393
Total Operating Expenses 74,539 2,891,358 21,365,323 24,331,220
Operating Income (Loss) Before Depreciation 1,325,518 (393,907) (3,632,232) (2,700,621)
Depreciation 1,780,829 - - 1,780,829
Operating Income (Loss)(455,311) (393,907) (3,632,232) (4,481,450)
Non-Operating Revenue (Expenses)
Investment income 2,129 339 384 2,852
Gain on sale of property 88,015 - - 88,015
Total Non-Operating Revenues (Expenses)90,144 339 384 90,867
Income (Loss) Before Transfers (365,167) (393,568) (3,631,848) (4,390,583)
Transfers
Transfers in - - 2,300,000 2,300,000
Transfers (out)- (27,833) (9,632) (37,465)
Total Transfers - (27,833) 2,290,368 2,262,535
Change in Net Position (365,167) (421,401) (1,341,480) (2,128,048)
Net Position (Deficit) - Beginning 9,108,815 762,849 (2,997,025) 6,874,639
Net Position (Deficit) - Ending 8,743,648$ 341,448$ (4,338,505)$ 4,746,591$
(See independent auditor's report.)
- 125 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2017
Equipment
Replacement Fleet Services Insurance Total
Cash Flows from Operating Activities
Receipts from customers and users -$ 19,016$ 2,909,491$ 2,928,507$
Receipts from/(payments for)
interfund services provided 1,283,646 3,080,291 14,789,765 19,153,702
Receipts from other agencies - - 522,849 522,849
Payments to suppliers (82,704) (1,896,713) (571,379) (2,550,796)
Payments to employees - (1,151,976) (3,136,327) (4,288,303)
Payments for insurance premiums - - (16,867,500) (16,867,500)
Net Cash Provided from Operating Activities 1,200,942 50,618 (2,353,101) (1,101,541)
Cash Flows from Noncapital Financing Activities
Interfund transfers - (27,833) 2,290,368 2,262,535
Net Cash from Noncapital Financing Activities - (27,833) 2,290,368 2,262,535
Cash Flows from Capital and Related Financing Activities
Sale of capital assets 88,015 - - 88,015
Acquisition and construction of capital assets (1,695,815) - - (1,695,815)
Net Cash from Capital and Related Financing Activities (1,607,800) - - (1,607,800)
Cash Flows from Investing Activities
Interest income 2,129 339 384 2,852
Net Cash from Investing Activities 2,129 339 384 2,852
Net Increase (Decrease) in Cash and Cash Equivalents (404,729) 23,124 (62,349) (443,954)
Cash and Equivalents
Beginning 1,591,306 296,922 132,349 2,020,577
Ending 1,186,577$ 320,046$ 70,000$ 1,576,623$
Reconciliation of Operating Income (Loss) to Net Cash
Provided from Operating Activities
Operating Income (loss)(455,311)$ (393,907)$ (3,632,232)$ (4,481,450)$
Adjustments to reconcile operating income to
net cash provided from operating activities
Depreciation 1,780,829 - - 1,780,829
Changes in assets and liabilities
Increase/decrease in accounts receivable miscellaneous (8,165) - - (8,165)
Interfund receivable (67,438) - 422,812 355,374
Prepaid expenses - - 932,155 932,155
Inventories - (81,783) - (81,783)
Compensated absences - 7,514 (5,756) 1,758
OPEB liability - 9,379 - 9,379
Vouchers payable - (92,441) 1,504,087 1,411,646
Interfund payable (48,973) 601,856 66,202 619,085
Claims payable - - (1,640,369) (1,640,369)
Net Cash Provided from Operating Activities 1,200,942$ 50,618$ (2,353,101)$ (1,101,541)$
(See independent auditor's report.)
- 126 -
COMPONENT UNIT - PUBLIC LIBRARY
CITY OF EVANSTON LIBRARY COMPONENT UNIT
EVANSTON, ILLINOIS
Combining Balance Sheet/Statement of Net Position
December 31, 2017
Capital
Operating Endowment Improvement
Assets
Cash and investments 957,290$ 4,385,655$ 322,066$
Property taxes receivable 6,626,435 - -
Other receivables 95 - -
Due from other governments 57,834 - -
Due from primary government - - -
Due from other funds 198,905 - -
Capital assets not being depreciated - - -
Capital assets net of accumulated depreciation - - -
Total Assets 7,840,559 4,385,655 322,066
Deferred Outflows of Resources
Pension items - IMRF - - -
Total Assets and Deferred Outflows of Resources 7,840,559$ 4,385,655$ 322,066$
Liabilities, Deferred Inflows of Resources,
and Fund Balance/Net Position
Current Liabilities
Accounts Payable 171,820$ -$ 13,667$
Due to Primary Government - - -
Due to other funds - 190,200 -
Total Current Liabilities 171,820 190,200 13,667
Noncurrent Liabilities
Due within one year - - -
Due in more than one year - - -
Total Noncurrent Liabilities - - -
Total Liabilities 171,820 190,200 13,667
Deferred Inflows of Resources
Pension items - IMRF - - -
Unavailable Property Taxes 6,626,435 - -
Total Deferred Inflows of Resources 6,626,435 - -
Total Liabilities and Deferred Inflows of Resources 6,798,255 190,200 13,667
Fund Balances/Net Position
Net investment in capital assets - - -
Restricted for debt service - - -
Restricted for capital improvements - - 308,399
Restricted for endowment - 4,195,455 -
Unassigned/unrestricted 1,042,304 - -
Total Fund Balances/Net Position 1,042,304 4,195,455 308,399
Total Liabilities, Deferred Inflows,
and Fund Balances/Net Position 7,840,559$ 4,385,655$ 322,066$
- 127 -
Statement of
Debt Service Total Adjustments Net Position
-$ 5,665,011$ -$ 5,665,011$
345,790 6,972,225 - 6,972,225
- 95 - 95
- 57,834 - 57,834
12,794 12,794 - 12,794
- 198,905 (198,905) -
- - 311,380 311,380
- - 11,599,662 11,599,662
358,584 12,906,864 11,712,137 24,619,001
- - 1,538,265 1,538,265
358,584$ 12,906,864$ 13,250,402$ 26,157,266$
-$ 185,487$ -$ 185,487$
- - - -
8,705 198,905 (198,905) -
8,705 384,392 (198,905) 185,487
- - 407,593 407,593
- - 4,669,210 4,669,210
- - 5,076,803 5,076,803
8,705 384,392 4,877,898 5,262,290
- - 201,861 201,861
345,790 6,972,225 - 6,972,225
345,790 6,972,225 201,861 7,174,086
354,495 7,356,617 5,079,759 12,436,376
- - 8,752,321 8,752,321
4,089 4,089 - 4,089
- 308,399 - 308,399
- 4,195,455 - 4,195,455
- 1,042,304 (581,678) 460,626
4,089 5,550,247 8,170,643 13,720,890
358,584$ 12,906,864$ 13,250,402$ 26,157,266$
(See independent auditor's report.)
- 128 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
EVANSTON, ILLINOIS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities
Governmental Fund
For Fiscal Year Ended December 31, 2017
Capital
Operating Endowment Improvement
Revenues
Property taxes 6,370,507$ -$ -$
Intergovernmental
Personal property replacement tax - - -
Grant revenue 108,001 - -
Charges for services 329,579 - -
Fines and forfeits 122,862 - -
Other
Investment income 5,169 565,798 -
Donations 69,984 - -
Miscellaneous 395 - -
Total Revenues 7,006,497 565,798 -
Expenditures
Current
Community services 6,805,048 - -
Capital Outlay - - 1,091,917
Debt Service
Payment Primary Government - - -
Principal - - -
Interest and fiscal charges - - 30,790
Total Expenditures 6,805,048 - 1,122,707
Excess (Deficiency) or Revenues
Over Expenditures 201,449 565,798 (1,122,707)
Other Financing Sources (Uses)
Issuance of bonds - - 1,380,000
Premium on bond issuances - - 51,106
Transfer in 190,200 - -
Transfer (out)- (190,200) -
Total Other Financing Sources (Uses)190,200 (190,200) 1,431,106
Change in Fund Balance/Net Position 391,649 375,598 308,399
Fund Balances/Net Position
Beginning of Year 650,655 3,819,857 -
End of Year 1,042,304$ 4,195,455$ 308,399$
- 129 -
Statement of
Debt Service Total Adjustments Activities
338,897$ 6,709,404$ -$ 6,709,404$
- - - -
- 108,001 - 108,001
- 329,579 - 329,579
- 122,862 - 122,862
7 570,974 - 570,974
- 69,984 - 69,984
- 395 - 395
338,904 7,911,199 - 7,911,199
112 6,805,160 2,097,914 8,903,074
- 1,091,917 (1,091,917) -
- - - -
1,064,547 1,064,547 (1,064,547) -
78,610 109,400 (86,316) 23,084
1,143,269 9,071,024 (144,866) 8,926,158
(804,365) (1,159,825) 144,866 (1,014,959)
743,535 2,123,535 (2,123,535) -
35,210 86,316 (86,316) -
- 190,200 (190,200) -
- (190,200) 190,200 -
778,745 2,209,851 (2,209,851) -
(25,620) 1,050,026 (2,064,985) (1,014,959)
29,709 4,500,221 10,235,628 14,735,849
4,089$ 5,550,247$ 8,170,643$ 13,720,890$
(See independent auditor's report.)
- 130 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
EVANSTON, ILLINOIS
Library Operating Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended December 31, 2017
Original and
Final Budget Actual Variance
Taxes
Property taxes 6,376,358$ 6,370,507$ (5,851)$
Intergovernmental
Personal property replacement tax 46,100 - (46,100)
Grant revenue 107,418 108,001 583
Charges for services 336,020 329,579 (6,441)
Fines and forfeits 164,000 122,862 (41,138)
Other
Investment income 5,400 5,169 (231)
Donations 24,849 69,984 45,135
Miscellaneous - 395 395
Total Revenues 7,060,145 7,006,497 (53,648)
General management and support 6,917,052 6,805,048 (112,004)
Total Expenditures 6,917,052 6,805,048 (112,004)
Excess (Deficiency) of Revenues
Over Expenditures 143,093 201,449 58,356
Transfers in 190,200 190,200 -
Transfers (out) (333,293) - 333,293
Total Other Financing Sources (Uses)(143,093) 190,200 333,293
Net Changes in Fund Balances -$ 391,649 391,649$
Fund Balances
Beginning of Year 650,655
End of Year 1,042,304$
Revenues
Expenditures
Other Financing Sources (Uses)
(See independent auditor's report.)
- 131 -
STATISTICAL SECTION
This part of the City of Evanston, Illinois’ comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information displays about the City’s
overall financial health.
Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand
how the City’s financial performance and well-being have been changed
over time.
132-137
Revenue Capacity
These schedules contain information to help the reader assess the City’s
most significant local revenue source, the property tax.
138-140
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the City’s
ability to issue additional debt in the future.
141-145
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City’s financial
activities take place.
146-147
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the
services the City provides and the activities it performs.
148-153
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
CITY OF EVANSTON, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2009 2010 2011 2011*2012 2013 2014 2015**2016 2017
Governmental Activities
Net investment in capital assets 37,278$ 41,109$ 49,483$ 57,663$ 60,105$ 47,214$ 46,633$ 47,953$ 51,588$ 51,575$
Restricted 26,238 23,645 23,187 31,559 31,754 24,720 25,446 16,409 18,523 11,990
Unrestricted 17,539 10,400 4,072 (24,033) (23,729) (13,846) (11,436) (136,007) (170,270) (164,614)
Total Governmental Activities Net Position 81,055$ 75,154$ 76,742$ 65,189$ 68,130$ 58,088$ 60,643$ (71,645)$ (100,159)$ (101,049)$
Business-Type Activities
Net investment in capital assets 172,399$ 192,921$ 207,162$ 215,755$ 228,738$ 239,243$ 246,382$ 255,622$ 268,851$ 278,446$
Restricted 1,987 3,378 1,624 1,034 710 712 649 - - -
Unrestricted 27,586 25,417 19,141 25,385 26,363 25,484 23,563 22,785 18,928 14,249
Total Business-Type Activities Net Position 201,972$ 221,716$ 227,927$ 242,174$ 255,811$ 265,439$ 270,594$ 278,407$ 287,779$ 292,695$
Primary Government
Net investment in capital assets 209,677$ 234,030$ 256,645$ 273,418$ 288,843$ 286,457$ 293,015$ 303,575$ 320,439$ 330,021$
Restricted 28,225 27,023 24,811 32,593 32,464 25,432 26,095 16,409 18,523 11,990
Unrestricted 45,125 35,817 23,213 1,352 2,634 11,638 12,127 (113,222) (151,342) (150,365)
Total Primary Government Net Position 283,027$ 296,870$ 304,669$ 307,363$ 323,941$ 323,527$ 331,237$ 206,762$ 187,620$ 191,646$
* The City changed its fiscal year end to December 31, 2011.
** The City implemented GASB Statemetn No. 68 which resulted in a decrease in unrestricted net position
Source: City Finance Division
- 132 -
CITY OF EVANSTON, ILLINOIS
Changes in Net Position
Last Ten Fiscal Years
(amounts expressed in thousands)
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Expenses
Governmental Activities
General government 18,017$ 19,773$ 17,517$ 17,911$ 22,508$ 18,892$ 13,811$ 12,493$ 18,163$ 20,890$
Public safety 49,484 50,488 53,226 43,465 52,740 57,090 58,795 57,443 55,625 61,191
Public works 21,628 18,509 15,626 12,399 11,099 13,782 25,825 20,011 13,668 24,793
Health and human resource development 4,546 4,760 4,541 3,547 3,200 3,601 3,837 2,911 3,319 3,354
Housing and economic development 6,965 20,066 10,857 11,630 19,101 11,123 12,443 10,532 21,063 7,023
Culture and recreation 20,002 9,120 20,142 15,607 17,438 16,433 9,358 14,794 14,380 14,744
Interest on long-term debt 4,041 4,396 5,595 3,114 1,786 377 3,919 3,757 3,779 3,354
Total Governmental Activities Expenses 124,683 127,112 127,504 107,673 127,872 121,298 127,988 121,941 129,997 135,349
Business-Type Activities
Water 9,391 9,133 8,713 7,450 10,172 11,193 11,977 10,748 11,450 12,239
Sewer 8,726 8,779 8,784 7,083 7,872 7,649 7,293 6,608 6,683 6,540
Solid waste - - - 4,317 4,612 4,732 4,856 5,150 4,967 4,907
Motor vehicle parking system 8,896 8,841 8,425 6,673 8,297 8,369 7,856 7,862 8,532 8,575
Total Business-Type Activities Expenses 27,013 26,753 25,922 25,523 30,953 31,943 31,982 30,368 31,632 32,261
Total Primary Government Expenses 151,696$ 153,865$ 153,426$ 133,196$ 158,825$ 153,241$ 159,970$ 152,309$ 161,629$ 167,610$
Program Revenues
Governmental Activities
Charges for services
General government 13,348$ 13,087$ 12,796$ 9,219$ 9,478$ 8,917$ 9,374$ 8,629$ 10,094$ 8,145$
Culture and recreation 4,637 4,902 5,265 4,587 9,934 5,236 5,360 5,572 5,560 5,669
Other activities 10,289 7,946 9,377 8,523 11,349 12,179 15,253 11,268 15,739 12,712
Operating grants and contributions 5,117 5,898 9,851 9,861 13,453 10,102 7,151 5,535 6,809 5,931
Capital grants and contributions 113 4,037 8,026 3,941 2,017 2,956 501 275 368 325
Total Governmental Activities Program Revenues 33,504 35,870 45,315 36,131 46,231 39,390 37,639 31,279 38,570 32,782
- 133 -
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Business-Type Activities
Charges for services
Water 13,685$ 12,694$ 13,738$ 12,369$ 14,967$ 14,658$ 15,052$ 15,722$ 16,419$ 17,588$
Sewer 13,774 13,243 13,393 11,377 14,115 13,510 12,785 12,511 13,049 12,478
Sherman garage - - - - - - - - - -
Solid waste - - - 2,900 3,490 3,651 3,971 4,004 4,031 4,061
Motor vehicle parking system 6,719 6,772 5,987 4,928 6,663 6,255 6,080 6,164 6,688 6,530
Maple avenue garage fund - - - - - - - - - -
Operating grants and contributions - - - - 395 939 15 - 38,400 -
Total Business-Type Activities Program Revenues 34,178 32,709 33,118 31,574 39,630 39,013 37,903 38,401 78,587 40,657
Total Primary Government Program Revenues 67,682$ 68,579$ 78,433$ 67,705$ 85,861$ 78,403$ 75,542$ 69,680$ 117,157$ 73,439$
Net (Expense)/Revenue
Governmental Activities (91,179)$ (91,242)$ (82,189)$ (71,542)$ (81,641)$ (81,908)$ (90,349)$ (90,662)$ (91,427)$ (102,567)$
Business-Type Activities 7,165 5,956 7,196 6,051 8,677 7,070 5,921 8,033 46,955 8,396
Total Primary Government Net Expense (84,014)$ (85,286)$ (74,993)$ (65,491)$ (72,964)$ (74,838)$ (84,428)$ (82,629)$ (44,472)$ (94,171)$
General Revenues and Other Changes in
Net Position
Governmental Activities
Taxes
Property taxes 56,217$ 58,839$ 47,040$ 33,399$ 47,874$ 46,349$ 48,579$ 45,840$ 45,610$ 46,563$
Sales taxes 15,500 14,880 15,577 13,495 15,888 16,965 17,362 17,758 17,932 16,071
Investment earnings 360 721 557 32 398 79 (258) 30 118 235
Miscellaneous 26,684 24,601 27,501 21,244 25,348 27,369 26,612 30,950 33,217 35,011
Transfers (9,469) (13,700) (99) (8,180) (4,926) (2,586) 610 631 434 3,797
Total Governmental Activities 89,292 85,341 90,576 59,990 84,582 88,176 92,905 95,209 97,311 101,677
Business-Type Activities
Investment earnings 606 87 23 16 34 33 (156) 27 59 114
Miscellaneous (28) - - - - (61) - 301 (245) 203
Transfers 9,469 13,700 99 8,180 4,926 2,586 (610) (631) (434) (3,797)
Total Business-Type Activities 10,047 13,787 122 8,196 4,960 2,558 (766) (303) (620) (3,480)
Changes in Net Position
Governmental Activities (1,887) (5,901) 8,387 (11,552) 2,941 6,268 2,556 4,547 5,884 (890)
Business-Type Activities 17,212 19,743 7,318 14,247 13,637 9,628 5,155 7,730 46,335 4,916
Total Primary Government 15,325$ 13,842$ 15,705$ 2,695$ 16,578$ 15,896$ 7,711$ 12,277$ 52,219$ 4,026$
* The City changed its fiscal year end to December 31, 2011.
Source: City Finance Division
- 134 -
CITY OF EVANSTON, ILLINOIS
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(amounts expressed in thousands)
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
General Fund
Nonspendable - - - - - - - 118 -$ 300$
Reserved/Restricted 1,275 1,585 1,995 - - - - - - -
Unreserved/Restricted 19,752 18,603 20,009 - - - - - - -
Assigned - - - 7,590 6,848 6,362 5,347 5,672 5,046 4,180
Unassigned - - - 10,803 10,186 10,001 9,636 4,914 6,622 8,868
Total General Fund 21,027$ 20,188$ 22,004$ 18,393$ 17,034$ 16,363$ 14,983$ 10,586$ 11,668$ 13,348$
All Other Governmental Funds
Reserved 31,757$ 28,953$ 28,738$ -$ -$ -$ -$ -$ -$ -$
Unreserved, reported in
Special Revenue Funds 10,356 10,807 10,907 - - - - - - -
Capital Projects Funds 20,899 9,276 9,665 - - - - - - -
Nonspendable - - - 1,419 - 407 1,430 2,158 - -
Restricted - - - 32,353 32,431 25,359 26,003 16,409 18,523 11,418
Committed - - - 806 2,150 3,507 3,540 2,556 2,996 -
Assigned - - - 10,074 5,307 8,372 10,467 5,517 7,668 12,301
Unassigned - - - (175) 1,105 (149) (153) (221) (252) (204)
Total All Other Governmental Funds 63,012$ 49,036$ 49,310$ 44,477$ 40,993$ 37,496$ 41,287$ 26,419$ 28,935$ 23,515$
* The City changed its fiscal year end to December 31, 2011.
Notes:
1. Fund balances for debt service have been included in the reserved amounts.
2. Starting fiscal year ending December 31, 2011, financials are presented per the new reporting standards of GASB 54.
Source: City Finance Division
- 135 -
CITY OF EVANSTON, ILLINOIS
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(amounts expressed in thousands)
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Revenues
Taxes 84,035$ 84,726$ 73,559$ 56,466$ 79,331$ 78,254$ 77,933$ 75,747$ 76,047$ 78,157$
Licenses, fees and permits 8,820 7,279 8,661 6,776 10,470 10,617 14,503 12,184 17,933 13,358
Fines and penalties 4,442 4,151 4,003 3,280 3,470 3,449 3,358 148 3,612 3,468
Charges for services 8,399 8,680 9,786 6,283 7,763 7,723 7,793 23,834 8,791 8,713
Special assessments 516 240 429 235 293 275 167 8,312 169 260
Intergovernmental 21,013 20,696 26,456 23,183 29,252 27,844 24,300 3,554 24,886 22,627
Investment earnings 272 714 555 22 397 94 89 30 118 235
Other revenues 4,679 4,642 6,390 4,133 2,915 1,906 1,791 1,722 3,892 3,843
Total Revenues 132,176 131,128 129,839 100,378 133,891 130,162 129,934 125,531 135,448 130,661
Expenditures
General government 16,498 16,184 23,463 13,594 18,532 17,611 13,314 13,444 17,064 18,152
Public safety 49,999 48,970 50,352 42,140 54,611 56,431 59,425 59,654 62,252 64,347
Public works 18,913 16,062 14,053 7,574 9,380 11,982 19,821 19,815 13,477 14,041
Recreation and cultural opportunities 18,942 18,100 17,399 16,192 14,309 14,775 10,524 11,087 11,894 12,371
Health and human development 4,546 4,760 4,541 3,588 3,200 3,601 3,837 3,141 3,021 3,111
Housing and economic development 6,963 9,120 11,345 11,999 19,095 11,305 9,348 13,292 10,477 7,225
Capital outlay 8,209 7,960 7,112 5,832 8,523 5,948 6,286 9,151 9,953 14,953
Debt service
Interest 5,143 4,953 4,878 4,384 5,175 4,996 4,411 4,413 4,276 4,040
Fiscal agent fees 28 5 12 79 76 127 43 16 14 2
Principal 9,885 7,524 7,650 10,106 13,055 34,259 10,040 20,833 19,661 24,253
Total Governmental Activities Expenditure 139,126 133,638 140,805 115,488 145,956 161,035 137,049 154,846 152,089 162,495
Net (Expense)/Revenue
Governmental Activities (6,950) (2,510) (10,966) (15,110) (12,065) (30,873) (7,115) (29,315) (16,641) (31,834)
- 136 -
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Other Financing Sources (Uses)
Proceeds from borrowing 24,340$ -$ 13,393$ 15,420$ 12,618$ 34,982$ 9,989$ 22,377$ 19,652$ 26,558$
Capitalized interest income 839 - 120 - - - - - - -
Capitalized interest expense - - - - - - - - - -
Escrow funding (13,280) - - - - - - - - -
Transfers in 5,927 11,019 5,727 5,839 9,271 8,182 9,202 10,308 16,011 17,428
Transfers (out)(14,794) (23,324) (6,184) (14,593) (14,668) (11,879) (9,665) (9,315) (15,542) (15,893)
Total Other Financing Sources (Uses)3,032 (12,305) 13,056 6,666 7,221 31,285 9,526 23,370 20,121 28,093
Net Changes in Fund Balance (3,917)$ (14,815)$ 2,090$ (8,444)$ (4,844)$ 412$ 2,411$ (5,945)$ 3,480$ (3,741)$
Debt Service as a Percentage of
Noncapital Expenditures 11.48%9.93%9.36%13.29%13.26%25.31%11.05%17.62%16.84%19.18%
* The City changed its fiscal year end to December 31, 2011.
Source: City Finance Division
- 137 -
CITY OF EVANSTON, ILLINOIS
Equalized Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Levy Total Total Total
Year Residential Farm Commercial Industrial Railroad Equalized Actual Tax
Ended Property Property Property Property Property Assessed Value Value Rate
2007 2,149,123,958$ 16,895$ 560,536,782$ 62,154,048$ 508,346$ 2,772,340,029$ 8,317,020,087$ 1.283$
2008 2,324,551,100 16,895 560,106,493 53,168,671 554,733 2,938,397,892 8,815,193,676 1.295
2009 2,564,394,619 15,956 615,808,511 125,104,411 665,872 3,305,989,369 9,917,968,107 1.204
2010 2,233,194,054 15,956 623,156,869 184,687,438 829,769 3,041,884,086 9,125,652,258 1.364
2011 2,100,690,657 15,956 513,880,731 111,899,205 881,024 2,727,367,573 8,182,102,719 1.591
2012 1,944,932,067 15,956 462,671,239 106,007,084 995,206 2,514,621,552 7,543,864,656 1.551
2013 1,653,524,481 15,956 452,108,891 94,820,879 1,226,831 2,201,697,038 6,605,091,114 1.760
2014 1,792,383,435 15,467 416,165,953 34,726,327 1,278,793 2,244,569,975 6,733,709,925 1.856
2015 1,751,252,888 15,467 410,670,248 32,549,681 1,533,241 2,196,021,525 6,588,064,575 1.766
2016 2,151,672,082 15,467 483,830,858 33,333,491 1,559,871 2,670,411,769 8,011,235,307 1.501
Note:Property is reassessed once every three years.Equalized Assessed value is approximately 1/3 of actual value.Tax rates are per $100 of equalized
assessed value.
- 138 -
CITY OF EVANSTON, ILLINOIS
Principal Property Taxpayers
Current Year and Nine Years Ago
2016 Levy 2007 Levy
Percentage Percentage
Total of Total City Total of Total City
Equalized Assessed Taxable Equalized Assessed Taxable
Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV
Orrington TT LLC Golub 26,079,776$ 1 0.98%Golub & Company 29,187,724$ 1 1.30%
Rotary International 25,560,764 2 0.96%REP CBRE 21,716,555 2 0.97%
McCaffery Interests 19,943,770 3 0.75%Rotary International 21,533,721 3 0.96%
FSP 909 Davis Street 18,942,487 4 0.71%Church Street Plaza 17,782,985 4 0.79%
MB Sherman Highlands 16,617,333 5 0.62%Church & Chicago Ltd Partnership 14,786,152 5 0.66%
1890 Maple LLC 14,716,958 6 0.55%Omni Orrington Hotel 13,761,924 6 0.61%
Omni Orrington Hotel 13,851,298 7 0.52%Evanston Plaza Freed 13,373,273 7 0.60%
FDS 1007 Evanston LLC 13,727,884 8 0.51%Evanstone Hotel Assoc.12,251,240 8 0.55%
TIAA PK Evanston Inc 13,058,329 9 0.49%Albertson's (Jewel & Osco)9,461,347 9 0.42%
Northshore University Health 12,416,693 10 0.46%Kap Sum Properties LLC 9,327,365 10 0.42%
Total 174,915,293$ 6.55% Total 163,182,286$ 7.27%
Total EAV 2,670,411,769$ Total EAV 2,245,892,746$
Source: Cook County
- 139 -
CITY OF EVANSTON, ILLINOIS
Property Tax Levies and Collections
Last Ten Levy Years
Tax Taxes Levied Collected Receipts Collections Total Collected to Date
Levy for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2007 35,550,694$ 34,061,461$ 95.81%400,850$ 34,462,311$ 96.94%
2008 38,044,671 36,246,629 95.27%358,214 36,604,843 96.22%
2009 39,779,364 38,018,159 95.57%464,506 38,482,665 96.74%
2010 41,479,398 39,412,004 95.02%764,463 40,176,467 96.86%
2011 43,397,590 42,064,756 96.93%348,189 42,412,945 97.73%
2012 43,330,121 41,776,375 96.41%559,130 42,335,505 97.70%
2013 43,869,798 42,762,685 97.48%338,420 43,101,105 98.25%
2014 45,557,079 44,280,493 97.20%270,619 44,551,112 97.79%
2015 46,394,914 44,974,845 96.94%205,607 45,180,452 97.38%
2016 47,538,529 46,723,672 98.29%97,249 46,820,921 98.49%
2017 48,161,247 See Note See Note See Note See Note See Note
Note: Levy Year 2016 is collected beyond fiscal year end 2016 through December 31, 2017.
Source: City Finance Division
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CITY OF EVANSTON, ILLINOIS
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(2)Net
Gross (3)Net Net General
(1)General Debt Debt Net Debt to Debt to Obligation
Fiscal Equalized Obligation Service Payable General Total Equalized Total Bonded
Year Assessed Bonded Monies From Other Obligation Personal Assessed Personal Debt
Ended Population Valuation Debt Available Revenues Debt Income Valuation Income Per Capita
2009 74,239 2,772,340,029$ 171,945,001$ 7,317,930$ 62,079,183$ 102,547,888$ 2,902,967,617$ 3.70%3.53%1,381.32$
2010 74,239 2,938,397,892 149,315,000 5,989,400 46,882,320 96,443,280 2,902,967,617 3.28%3.32%1,299.09
2011 74,486 3,305,989,369 151,695,000 5,309,064 50,097,260 96,288,676 3,157,759,484 2.91%3.05%1,292.71
2011*74,486 3,041,884,087 155,855,000 2,629,020 47,111,060 106,114,920 3,197,311,550 3.49%3.32%1,424.63
2012 74,486 2,727,367,573 152,644,999 16,085,747 44,899,176 91,660,076 3,176,902,386 3.36%2.89%1,230.57
2013 74,619 2,514,621,552 149,534,997 12,520,761 40,042,921 96,971,315 3,113,477,775 3.86%3.11%1,299.55
2014 75,570 2,201,697,038 150,421,841 12,209,139 34,614,357 103,598,345 3,262,734,750 4.71%3.18%1,370.89
2015 75,570 2,244,569,975 150,069,048 438,453 37,651,325 111,979,270 3,124,063,800 4.99%3.58%1,481.80
2016 75,603 2,196,021,525 147,069,822 745,997 7,597,490 138,726,335 3,235,052,370 6.32%4.29%1,834.93
2017 75,472 2,670,411,769 148,627,212 241,781 6,245,662 142,139,769 3,316,617,040 5.32%4.29%1,883.34
* The City changed its fiscal year end to December 31, 2011.
Notes: (1)
(2)Excludes limited purpose special service district bonds.
(3)
Source: Cook County and City Finance Division
Equalized assessed values do not include tax increment financing district incremental equalized assessed values.
These amounts include the general obligation bonds that are being repaid from the Water Fund,Solid Waste Fund,Sewer Fund,Motor Vehicle Parking System Fund,
Howard Hartrey Tax Increment District, Washington National Tax Increment District, and Special Assessment Fund.
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CITY OF EVANSTON, ILLINOIS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal General Special General Water Total Percentage (1)
Year Obligation Service District Obligation Revenue IEPA Primary of Personal Per
Ended Bonds Bonds Notes Payable Capital Lease Bonds Bonds Loans Government Income Capita
2009 115,961,136$ 2,165,000$ -$ 1,035,370$ 55,983,865$ 2,245,000$ 101,775,223$ 279,165,594$ 9.62%3,760$
2010 109,078,880 2,155,000 - 708,552 40,236,120 1,720,000 95,370,544 249,269,096 8.59%3,358
2011 115,482,439 1,840,000 - 363,759 36,212,561 1,170,000 87,059,150 242,127,909 7.67%3,251
2011*120,739,206 1,840,000 - - 35,115,794 1,170,000 79,081,272 237,946,272 7.44%3,195
2012 119,423,742 1,515,000 648,812 - 33,221,257 595,000 70,375,368 225,130,367 7.09%3,022
2013 119,123,639 1,175,000 648,812 - 30,411,358 305,000 64,658,382 215,673,379 6.93%2,890
2014 119,060,744 795,000 648,812 - 30,566,097 - 58,412,659 208,834,500 6.40%2,763
2015 117,752,440 405,000 3,548,812 - 31,911,608 - 51,901,172 205,519,032 6.69%2,767
2016 116,091,162 - 5,128,812 - 30,926,350 - 45,256,237 197,402,561 5.95%2,544
2017 122,151,162 - 648,000 - 26,476,050 - 403,281,018 552,556,230 16.66%7,321
* The City changed its fiscal year end to December 31, 2011.
Notes:
Source: City Finance Division
Governmental Activities Business-Type Activities
(1) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(2) See the Schedule of Demographic and Economic Statistics for personal income and population data.
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CITY OF EVANSTON, ILLINOIS
Direct and Overlapping Governmental Activities Debt
As of December 31, 2017
Percentage
of Debt
Total Applicable The City's
Outstanding to the City Share of Debt
Direct debt - bonds, notes, and
contracts outstanding 149,276,024$ 100.00%149,276,024$
Other bonded debt by taxing body
High School District 202 23,025,000 90.20%20,769,225
School District 65 72,830,826 90.20%65,695,539
Skokie Park District 23,227,668 0.63%146,375
Community College District 535 33,965,000 11.98%4,069,451
County of Cook 3,085,186,750 1.86%57,419,376
Cook County Forest Preserve District 151,010,000 1.86%2,810,494
Metropolitan Water Reclamation District 2,599,522,271 1.90%49,319,263
Total Overlapping Debt 5,988,767,515 200,229,723
6,138,043,539$ 349,505,747$
Note: Overlapping debt calculated based on the pro rata EAV.
Source: Cook County Clerk's Offices
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CITY OF EVANSTON, ILLINOIS
Legal Debt Margin
December 31, 2017
The City is a home rule municipality.
To date, the Illinois General Assembly has set no limits for home rule municipalities.
“The General Assembly may limit by law the amount and require referendum approval of debt to be
incurred by home rule municipalities,payable from ad valorem property tax receipts,only in excess of the
following percentages of the assessed value of its taxable property...(2)if its population is more than
25,000 and less than 500,000 an aggregate of one percent...indebtedness which is outstanding on the
effective date (July 1,1971)of this constitution or which is thereafter approved by referendum...shall not
be included in the foregoing percentage amounts.”
Chapter 65, Section 5/8-5-1 of the Illinois Compiled Statutes governs computation of the legal debt margin.
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CITY OF EVANSTON, ILLINOIS
Pledged-Revenue Coverage
Last Ten Fiscal Years
Water Revenue Bonds
Utility Less:Net
Fiscal Year Service Operating Available Debt Service
Ended Charges Expenses Resources Principal Interest Coverage
2009 13,878,833$ 7,866,909$ 6,011,924$ 510,000$ 110,913$ 9.68
2010 12,742,603 7,756,760 4,985,843 525,000 91,556 8.09
2011 13,752,681 7,191,577 6,561,104 550,000 71,269 10.56
2011*12,368,533 6,146,652 6,221,881 - 24,672 252.18
2012 14,967,204 8,430,599 6,536,605 575,000 37,687 10.67
2013 14,657,748 8,175,707 6,482,041 290,000 19,688 20.93
2014 15,051,732 7,938,838 7,112,894 305,000 6,672 22.82
2015 NA NA NA - - NA
2016 NA NA NA - - NA
2017 NA NA NA - - NA
N/A - The City has no revenue bonds outstanding after December 31, 2014.
* The City changed its fiscal year end to December 31, 2011.
Source: Various City departments
Note:Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest, depreciation, or amortization expense.
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CITY OF EVANSTON, ILLINOIS
Demographic and Economic Statistics
Last Ten Years
Per Education
Total Capita % of Population
Calendar Personal Personal Median with HS Diploma School Unemployment
Year Population Income Income Age or Higher Enrollment Rate
2008 74,239 2,902,967,617$ 39,103$ 32.5 94.0%9,550 4.6%
2009 74,239 2,902,967,617 39,103 32.5 94.0%9,550 4.7%
2010 74,486 3,157,759,484 42,394 34.3 94.0%9,550 7.9%
2011 74,486 3,197,311,550 42,925 34.3 94.0%11,369 7.3%
2012 74,486 3,176,902,386 42,651 35.1 93.6%11,418 6.8%
2013 74,619 3,113,477,775 41,725 34.4 93.9%10,293 6.7%
2014 75,570 3,262,734,750 43,175 34.4 93.9%10,429 4.2%
2015 75,570 3,124,063,800 41,340 34.4 93.9%11,088 4.5%
2016 75,603 3,235,052,370 42,790 35.2 94.0%12,104 4.3%
2017 75,472 3,316,617,040 43,945 35.3 94.0%12,026 3.9%
Source: Various Government agencies
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CITY OF EVANSTON, ILLINOIS
Principal Employers
Current Year and Nine Years Ago
Employer Employees %Rank Employer Employees %Rank
Northwestern University 6,573 40%1 Northwestern University 5,325 36%1
Northshore University Healthcare 4,264 26%2 Evanston Northwestern Healthcare 3,780 25%2
Evanston School District 65 1,512 9%3 St. Francis Hospital 1,649 11%3
St. Francis Hospital 1,000 6%4 City of Evanston 1,000 7%4
City of Evanston 807 5%5 Evanston School District 65 700 5%5
Presbyterian Homes/McGaw Care 490 3%6 Evanston Township High School 566 4%6
School District 202 807 3%7 Presbyterian Homes/McGaw Care 533 4%7
Rotary International 533 2%8 Rotary International 460 3%8
C.E. Neifhoff & Co.350 2%9 Jewel/Osco Food Store 455 3%9
ZS Associates 275 2%10 Mather LifeWays Retirement 450 3%10
Total 16,611 Total 14,918
Source: City Economic Development Division
2017 2008
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CITY OF EVANSTON, ILLINOIS
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Function/Program
General Government
City Clerk 2.00 2.00 2.00 3.00 2.80 2.20 2.20 2.00 2.00 1.00
City Manager's Office 31.53 27.70 22.00 8.00 12.00 12.00 14.00 13.00 19.00 17.50
MBIS / IT - - 13.00 12.00 11.50 9.00 11.00 12.00 11.00 13.00
Legal 7.00 6.00 7.00 7.00 7.00 8.00 7.00 8.00 8.00 4.50
Human Resources 8.00 8.00 5.00 5.00 7.50 8.00 8.50 6.50 6.50 8.50
Finance 29.50 28.50 19.50 19.00 17.10 17.00 17.50 20.50 18.00 19.50
Parking Systems - - 13.00 12.00 12.00 9.00 12.00 12.00 12.00 12.00
Facilities Management - - - 19.00 20.20 16.00 - - 20.20 22.20
Community Development 35.00 33.00 28.00 27.00 27.00 24.00 21.00 19.00 21.50 20.50
Community College District 535
Police 220.75 218.50 219.00 222.00 225.00 220.00 227.00 227.00 230.80 225.80
Fire 112.00 111.00 107.00 108.00 110.00 106.00 110.00 110.00 110.00 110.00
Human and Health Services 24.90 26.40 15.90 17.00 17.70 20.00 21.10 22.10 21.10 19.10
Public Works 105.45 83.25 58.80 49.00 49.25 97.00 108.45 107.45 84.25 86.25
Recreation, Parks, and Forestry 112.75 131.75 132.00 105.00 105.21 69.00 69.64 74.23 77.13 77.81
Total General Government 688.88 676.10 642.20 613.00 624.26 617.20 629.39 633.78 641.48 637.66
Library 69.35 67.50 52.00 52.00 56.38 63.00 63.13 66.87 66.87 66.87
Neighborhood Stabilization Program - - 1.00 1.00 2.00 1.00 1.31 0.50 0.45 0.30
Housing Rehabilitation - - - - - - - 1.75 1.75 1.75
General Assistance Fund - - - - - - - 4.00 4.00 4.00
HOME Fund - - - - - - - 0.40 0.50 0.50
Affordable Housing Fund - - - - - - - - - 0.70
Emergency Telephone System 4.00 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 5.00
CDBG 2.00 2.00 2.00 3.00 1.53 3.00 2.60 2.60 2.80 2.50
Economic Development Fund 2.30 2.30 5.00 6.00 7.00 5.00 6.25 6.25 5.75 5.75
Downtown II TIF Fund - - - - - - - - - -
Capital Improvements Fund - - 1.00 - - - - - - -
Maple Ave. Garage 1.00 - - - - - - - - -
Parking Fund 14.50 15.50 14.00 15.00 15.50 15.50 15.50 15.50 15.50 15.00
Source: City Finance division - - - - - - - - - -
Water 43.00 43.00 42.00 41.00 42.50 40.00 42.50 44.50 44.50 43.50
Sewer 14.00 14.00 12.00 11.00 13.00 11.00 13.33 11.33 11.33 11.33
Solid Waste - - - 6.00 10.00 8.00 9.66 9.66 9.66 9.66
Fleet Services 15.00 15.00 11.00 12.00 12.00 10.00 12.00 12.50 12.50 11.50
Insurance Fund 2.00 2.00 3.00 4.00 4.00 4.00 5.00 5.00 5.00 5.50
Total Other Functions 167.15 166.30 148.00 156.00 168.91 164.50 176.28 185.86 118.74 183.86
Total All Funds 856.03 842.40 790.20 769.00 793.17 781.70 805.67 819.64 760.22 821.52
* The City changed its fiscal year end to December 31, 2011.
Source: City of Evanston HR Division
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CITY OF EVANSTON, ILLINOIS
Property Tax Rates per $100 - Direct and Overlapping Governments
Last Ten Levy Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
City of Evanston 1.295 1.204 1.365 1.592 1.551 1.760 1.856 1.766 1.762 1.501
Consolidated Elections - 0.021 - 0.025 - - - - --
Cook County 0.415 0.394 0.423 0.462 0.531 0.560 0.591 0.568 0.552 0.533
Cook County Forest Preserve District 0.051 0.049 0.051 0.058 0.063 0.069 0.073 0.069 0.069 0.063
Metropolitan Water Reclamation District 0.252 0.261 0.274 0.320 0.370 0.417 0.440 0.430 0.426 0.406
North Shore Mosquito Abatement District 0.008 0.008 0.009 0.010 0.010 0.007 0.007 0.011 0.012 0.010
Evanston Township 0.050 0.042 0.046 0.011 0.010 0.053 0.056 - --
Community College 535 0.140 0.140 0.160 0.196 0.219 0.256 0.270 0.258 0.271 0.231
School District 202 1.722 1.616 1.819 2.061 2.308 2.689 2.836 2.659 2.792 2.332
School District 65 2.552 2.401 2.655 2.818 3.149 3.671 3.872 3.686 3.810 3.676
Total Tax Rate for Property not in Park District
or Special Service District 6.485 6.136 6.802 7.553 8.211 9.482 10.001 9.447 9.694 8.752
Percent of Total Tax Rate Levied by the City 19.97%19.62%20.07%21.08%18.89%18.56%18.56%18.69%18.18%17.15%
Source: Cook County Assessor's office
Government Unit
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CITY OF EVANSTON, ILLINOIS
Water Sold by Type of Customer
Last Ten Fiscal Years
(in 100 cubic feet)
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Type of Customer
Residential 2,260,284$ 2,174,255$ 2,187,244$ 1,804,433$ 2,276,492$ 2,189,588$ 2,065,980$ 2,098,160$ 1,998,740$ 2,285,759
Industrial 15,722 13,624 14,195 11,552 14,758 12,392 11,627 10,772 21,381 12,777
Commercial 1,193,241 1,109,556 1,153,949 928,621 1,117,431 1,105,077 1,036,034 1,045,791 2,313,154 1,115,236
Government 89,420 69,229 75,308 50,129 66,561 61,908 53,732 55,485 82,066 67,547
Total 3,558,667$ 3,366,664$ 3,430,696$ 2,794,735$ 3,475,242$ 3,368,965$ 3,167,373$ 3,210,208$ 4,415,341$ 3,481,319$
Total direct rate
per 100 cubic feet 1.52$ 1.52$ 1.52$ 1.52$ 1.75$ 1.80$ 1.98$ 2.18$ 2.18$ 2.31$
* The City changed its fiscal year end to December 31, 2011.
Source: City Utilities Department
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CITY OF EVANSTON, ILLINOIS
Water Sold by Major Customers
Last Ten Fiscal Years
2009 2010 2011 2011*2012 2013 2014 2015 2016 2017
Type of Customer
Evanston residents/businesses 5,430,019$ 5,396,739$ 5,377,297$ 4,719,084$ 6,124,221$ 5,915,560$ 6,301,307$ 6,975,785$ 6,820,350$ 7,556,362$
Village of Skokie 2,689,304 2,676,163 2,885,096 2,304,066 2,989,109 2,772,424 2,805,425 2,854,684 2,941,912 3,651,338
Northwest Water Commission 4,820,074 4,506,066 4,781,645 3,710,581 5,033,996 5,183,425 5,074,770 5,183,391 5,695,812 5,898,670
Total 12,939,397$ 12,578,968$ 13,044,038$ 10,733,731$ 14,147,326$ 13,871,409$ 14,181,502$ 15,013,860$ 15,458,074$ 17,106,370$
* The City changed its fiscal year end to December 31, 2011.
Source: City Utilities Department
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CITY OF EVANSTON, ILLINOIS
Operating Indicators by Function/Programs
Last Ten Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function/Program
Police
Violent offenses 299 255 214 180 230 131 97 80 130 122
Property offenses 2,739 2,412 2,119 2,144 2,078 1,980 1,959 1,872 1,681 1,777
911 calls received 56,717 52,198 35,991 51,969 44,875 42,551 44,177 46,749 42,763 38,525
Fire
Emergency responses 9,134 8,566 8,917 9,063 9,330 9,373 9617 9630 10,267 10,058
Fires extinguished 185 154 157 157 154 129 120 99 114 90
Inspections 1,810 709 680 620 640 660 740 760 - 1125
Other Public Works
Street resurfacing (estimated miles)3.3 3.3 3.4 3.4 3.4 3.4 4.9 2.7 2.9 2.9
Parks and Recreation
Athletic field usage (hours)17,121 16,185 18,966 20,075 16,761 16,367 16,270 15,531 27,426 22,496
Picnic permits issued 403 431 460 437 541 445 448 404 229 371
Library
Volumes in collection 502,019 502,019 471,262 436,382 426,342 400,034 401,300 481,626 534,533 540,696
Total volumes borrowed 945,952 945,952 951,667 891,769 989,638 1,056,243 1,074,972 1,071,401 1,078,653 1,040,580
Water
New connections 57 28 29 16 4 - 18 9 3 5
Water main breaks 52 52 38 28 66 51 70 23 28 31
Average daily consumption
(millions of gallons)40.09 39.41 38.91 38.39 39.85 35.81 36.79 36.63 39.645 40.606
Peak daily consumption
(millions of gallons)65.40 58.94 57.02 65.95 69.21 56.95 48.91 50.59 55.084 58.047
Note: Indicators are not available for general government functions
- 152 -
CITY OF EVANSTON, ILLINOIS
Capital Assets Statistics by Function
Last Ten Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function/Program
Police
Number of stations 1 1 1 1 1 1 1 1 1 1
Budgeted sworn officers 165 165 164 164 164 164 164 164 165 165
Fire Stations 5 5 5 5 5 5 5 5 5 5
Other Public Works
Streets (miles)147 147 147 147 147 147 147 147 147 147
Streetlights 5,641 5,641 5,641 5,641 5641 5641 5641 5641 5736 5718
Parks and Recreation
Acreage 290 290 290 290 290 290 290 290 290 290
Playgrounds 51 51 51 51 51 51 51 51 51 51
Baseball/softball diamonds 18 18 18 18 18 18 18 18 18 18
Soccer/football fields 27 27 27 27 27 27 27 27 27 27
Community centers 5 5 5 5 5 5 5 6 6 6
Water
Water mains (miles)157 157 157 157 157 157 157 156.4 155.6 155.3
Fire hydrants 1,370 1,399 1,399 1,399 1,399 1,399 1,477 1,484 1,490 1,502
Storage capacity (millions of gallons)22 22 22 22 22 22 22 22 22 22
Note: No capital asset indicators are available for the general government or library function
Source: Various City departments
- 153 -
COMPLIANCE SECTION
1415 West Diehl Road, Suite 400
Naperville, IL 60563
630.566.8400
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH
STATE OF ILLINOIS PUBLIC ACT 85-1142
The Honorable Mayor
Members of the City Council
City of Evanston, Illinois
We have examined management’s assertion that the City of Evanston, Illinois (the City) complied
with the provisions of subsection (q) of Section 11 -74.4-3 of the Illinois Tax Increment
Redevelopment Allocation Act (Illinois Public Act 85 -1142) during the year ended December 31,
2017. As discussed in that representation letter, managem ent is responsible for the City’s compliance
with those requirements. Our responsibility is to express an opinion on management’s assertion
about the City’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants . Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management’s assertion
about compliance with the specified requir ements is fairly stated, in all material respects. An
examination involves performing procedures to obtain evidence about whether management’s
assertion is fairly stated, in all material respects. The nature, timing, and extent of the procedures
selected depend on our judgement, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not
provide a legal determination on the City’s compliance with statutory requirements.
In our opinion, management’s assertion that the City of Evanston, Illinois, complied with the
aforementioned requirements for the year ended December 31, 2017, is fairly stated in all material
respects.
This report is intended solely for the information and use of the City Council, management, the joint
review board, the Illinois State Comptroller, and the Illinois Department of Revenue and is not
intended to be and should not be used by anyone other than these specified parties.
Naperville, Illinois
June 22, 2018
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