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HomeMy WebLinkAbout2015 Annual Comprehensive Financial Report CITY OF EVANSTON, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2015 Prepared by Administrative Services Department 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 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................................................. 15-16 Statement of Cash Flows ........................................................................... 17-18 Fiduciary Funds Statement of Fiduciary Net Position .......................................................... 19 Statement of Changes in Plan Net Position ............................................... 20 Notes to Financial Statements ............................................................................. 21-81 Required Supplementary Information Schedule of Funding Progress and Employer Contributions Other Postemployment Benefits ..................................................................... 82 Schedule of Employer Contributions Illinois Municipal Retirement Fund ............................................................... 83 Police Pension Fund ....................................................................................... 84 Firefighters' Pension Fund .............................................................................. 85 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund ................................................................ 86 Police Pension Fund ....................................................................................... 87 Firefighters’ Pension Fund ............................................................................. 88 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund .................................................................... 89 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 ....................................................................................... 90 Firefighters’ Pension Fund ............................................................................. 91 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund ............................... 92-95 Schedule of Expenditures - Budget and Actual - General Fund.......................... 96 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Obligation Debt Fund ....................................................................... 97 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................... 98-101 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................... 102-105 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund ...................................................................................... 106 Economic Development Fund ........................................................................ 107 Emergency Telephone System Fund .............................................................. 108 Neighborhood Improvement Fund ................................................................. 109 Affordable Housing Fund ............................................................................... 110 HOME Fund ................................................................................................... 111 Community Development Block Grant Fund ................................................. 112 Schedule of Expenditures - Budget and Actual Community Development Block Grant Fund ................................................. 113 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Loan Fund ............................................................ 114 Neighborhood Stabilization Program 2 Fund ................................................. 115 Special Service District No. 4 Fund ............................................................... 116 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 General Assistance Fund ................................................................................ 117 Capital Improvements Fund ........................................................................... 118 Special Assessment Capital Projects Fund ..................................................... 119 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Debt Service Funds............. 120-122 ENTERPRISE FUNDS Water Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ........................................................................................ 123 Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual................................... 124 INTERNAL SERVICE FUNDS Combining Statement of Net Position ................................................................. 125 Combining Statement of Revenues, Expenses, and Changes in Net Position .................................................................................... 126 Combining Statement of Cash Flows .................................................................. 127 COMPONENT UNIT - PUBLIC LIBRARY All Governmental Funds Combining Balance Sheet/Statement of Net Position .................................... 128 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities ...................................... 129 Major Governmental Funds Library Operating Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual .......................................................... 130 CITY OF EVANSTON, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION Net Position by Component .......................................................................................... 131 Changes in Net Position ................................................................................................ 132 Fund Balances, Governmental Funds ........................................................................... 133 Changes in Fund Balances, Governmental Funds......................................................... 134 Equalized Assessed Value and Actual Value of Taxable Property ............................... 135 Principal Property Taxpayers ........................................................................................ 136 Property Tax Levies and Collections ............................................................................ 137 Ratios of General Bonded Debt Outstanding ................................................................ 138 Ratios of Outstanding Debt by Type ............................................................................. 139 Direct and Overlapping Governmental Activities Debt ................................................ 140 Legal Debt Margin ........................................................................................................ 141 Pledged-Revenue Coverage .......................................................................................... 142 Demographic and Economic Statistics ......................................................................... 143 Principal Employers ...................................................................................................... 144 Full-Time Equivalent City Government Employees by Function................................. 145 Property Tax Rates per $100 - Direct and Overlapping Governments ......................... 146 Water Sold by Type of Customer (in 100 cubic feet) ................................................... 147 Water Sold by Major Customers ................................................................................... 148 Operating Indicators by Function/Program ................................................................... 149 Capital Assets Statistics by Function ............................................................................ 150 COMPLIANCE SECTION INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH STATE OF ILLINOIS PUBLIC ACT 85-1142 ............................................... 151 INTRODUCTORY SECTION - i - CITY OF EVANSTON, ILLINOIS Principal Officials December 31, 2015 LEGISLATIVE Elizabeth B. Tisdahl, Mayor Judy Fiske Alderman – 1st Ward Peter Braithwaite Alderman – 2nd Ward Melissa A. Wynne Alderman – 3rd Ward Donald N. Wilson Alderman – 4th Ward Delores A. Holmes Alderman – 5th Ward Mark Tendam Alderman – 6th Ward Eleanor Revelle Alderman – 7th Ward Ann Rainey Alderman – 8th Ward Brian Miller Alderman – 9th Ward Rodney Greene, City Clerk EXECUTIVE Wally Bobkiewicz, City Manager Martin Lyons, City Treasurer/Assistant City Manager ADMINISTRATIVE Budget and Finance Manager Health and Human Services Ashley King Director Howard Killian Fire Chief City Attorney Greg Klaiber Grant Farrar Police Chief Library Director Richard Eddington Karen Danczak Community & Economic Development Parks, Recreation, & Community Director Services Director Mark Muenzer Lawrence Hemingway Administrative Services Director Public Works Agency Director Erika Storlie Dave Stoneback CITY MANAGER ADMINISTRATIVE SERVICES PUBLIC WORKS LAW UTILITIES PARKS, RECREATION & COMMUNITY SERVICES COMMUNITY DEVELOPMENT HEALTH AND HUMAN SERVICES FIRE POLICE CITY OF EVANSTON ORGANIZATION CHART RESIDENTS MAYOR ADVISORY BOARDS AND COMMISSIONS CITY CLERK - ii - - iii - City Manager’s Office 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448.8064 www.cityofevanston.org - iv - August 5, 2016 The Honorable Mayor Elizabeth B. Tisdahl, 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, 2015 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, 2015 to December 31, 2015. 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 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org - v - structure and compliance with applicable laws and regulations, is to be presented in a separate single audit report. This report includes all the funds and capital assets of the City and its component unit, the Evanston Library. The Town of the City of Evanston (the Township) has been previously presented as a separate legal entity which administered General Assistance for food, shelter and medical needs. Effective 12:00 a.m. May 1, 2014, the City of Evanston assumed all rights, powers, assets, property, obligations and duties of the Evanston 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. This CAFR is the first time that a full year of township functions are reported with the City. Library activity numbers are shown separately as a discrete component unit based on an ordinance passed by the City Council March 10, 2012 giving Library independence in running day to day operations. The Library has a separate Board whose members are appointed by the Mayor. The City’s financial statements have been audited by Sikich LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Evanston for the fiscal year ended December 31, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates by management, and evaluating the overall financial st atement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2015, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF EVANSTON The City: The City of Evanston constitutes many communities, perspectives, and qualities as a Chicago suburb with a major university, urban center, and lakefront; It has apartments, condominiums, and student housing; Its residents are commuters and locally employed workers; Its downtown is prospering, and neighborhood commercial centers 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org - vi - are also strong and developing. It is a part of the Chicago land economy and has a vigorous commercial and professional economy of its own. A population of approximately 75,000 is diverse by race, religion, age, education, economics, and occupation. With 8,700 people per square mile, Evanston has double the population density of the average North and Northwest suburb, and approximately half the density of Chicago. The City has over 260 acres in 75 parks and 5 beaches. Evanston is contiguous with Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It borders the north shore communities of Skokie and Wilmette. In 1863, the Village of Evanston was incorporated as a town , and after several annexations in 1892, the town became a city. The City’s southern boundar y of approximately eight square miles was established with the City of Chicago and the present City limits. The City also has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University, aptly named to serve the Northwest Territory. The University first platted the village which surrounded it. The continued vitality of the University and the cooperative relationship between the City and University adds to the total Evanston community. The Government: The City is a home rule municipality under the Illinois Constitution. As such, it has no tax rate or debt limits imposed by Illinois statute, nor is it required to conduct a referendum to authorize the increase of debt or the imposition of real estate property taxes. The City has a Council/Manager form of government with an elected Mayor. The Mayor is elected to a four-year term. The Aldermen each represent one of nine wards and are elected to terms of four years. The City Council is organized into four standing committees: Administration and Public Works, Human Services, Planning and Development, and Rules. The City Council has also established several special committees, commissions and advisory boards. The City Manager is the Chief Executive Officer of the City and is responsible for the management of all City operations under the direction of the City Council. The City Manager appoints and supervises the directors of the City’s 11 departments. The Assistant City Manager acts as Chief Financial Officer/Treasurer and is responsible for the central financial and administrative functions of the City. The City provides a broad range of municipal services, including police and fire protection, streets and parking, water and sewer service, public libraries, health services, lakefront beaches, parks and recreation activities, cultural events, and community and economic development activities. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org - vii - Schools are provided by separate school districts which are governed by elected school boards. A portion of the City is served by the Skokie Park District. Wastewater treatment is provided by the Metropolitan Water Reclamation District. Budget Process: The City’s fiscal year 2016 began on January 1, 2016. The City Manager submitted to the City Council a proposed operating budget in October for the fiscal year 2016 commencing the following January 1. The City staff will start a budget process for fiscal year 2017 in July 2016. The Council is expected to adopt the budget by November, 2016. The City Manager is authorized to transfer budgeted amounts between departments within any fund (such as the General Fund). However, any revisions that alter the total expenditures of any fund must be approved by the City Council. Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. For purposes of preparing the General Fund schedule of revenues (budget and actual), GAAP revenue and expenditures have been adjusted to the budgetary basis. The budgets of the governmental type funds are prepared on a cash basis. The Comprehensive Annual Financial Report (CAFR) of the City presents expenditures and revenues on both a GAAP basis and a budgetary basis for comparison. The City uses funds to report on both its financial position and results of its operations. Fund accounting is designated to demonstrate legal compliance and to aid in financial management by segregating transactions related to certain City functions or activities. Each fund is a separate, self-balancing accounting entity. In the City, there are three categories of funds: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of the City’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of capital assets (capital project funds), and the servicing of general long - term debt (debt service funds). The General Fund is used to account for all activities of the City not accounted for in other funds. In the fiscal year 2015, the City projects that 36.69% ($111.7 million-including transfers) of all City expenditures will occur in the General Fund. The primary reason for the increase over the 2015 budget/CAFR is the presentation of the pension funds. 2016 shows police and fire pension expenses both in the General Fund and in the pension funds. Other major funds include the General Obligation Debt, Parking, Water, and Sewer Funds. The Enterprise Funds (Water, Parking, Solid Waste Fund and Sewer) are operated and budgeted on a full accrual basis. Expenses are recognized when a commitment is made, and revenues are recognized when they are obligated to the City (For example, water user fees are recognized as revenue when bills are produced). 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org - viii - Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the GASB. The accounts of the City are divided into separate self -balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. The City’s expenditures are monitored on a regular basis by the Administrative Services Department. Disbursements are made by fund and only if expenditures are within the authorized budget. MAJOR INITIATIVES – FISCAL YEAR 2016 The City Manager’s Office will: Continue to focus on five areas for City economic development activities: 1) Attraction and retention of retailers; 2) Workforce development partnerships; 3) Support of arts and entertainment-focused businesses and ventures; 4) Entrepreneurship, and; 5) Support of the City’s Quality of Place initiative that define the City’s attractiveness to residents and businesses. The City of Evanston’s livability initiative also aims to support people through all stages of life and connect them to housing, transportation, and recreation opportunities. Evanston has joined the World Health Organization’s “Age-Friendly Cities” project to provide a system to educate, encourage, promote, and recognize improvements. This will make Evanston more user - friendly, not only for senior residents but for residents of all ages. Under this project, the City is in the final stages of developing a three-year City-wide action plan for ongoing improvement of “age-friendliness." Evanston works to measure performance and drive continuous improvement around creating a livable, sustainable city by participating in the STAR Community Rating System. STAR assesses a community’s ability to provide for the health and well-being of people, a strong local economy, and environmental stewardship. Evanston was one of the first 50 communities to complete the self-assessment and received a 4-STAR Certification for National Excellence in Sustainability. Evanston uses the STAR framework on an on-going basis to evaluate and enhance the City’s performance. This includes engaging residents, providing quality services, supporting transparent city ordinances and good planning, and developing and maintaining inclusive and equitable infrastructure. This holistic view of community fits with Evanston’s long-standing leadership in sustainability and its mission of creating the most livable city in America. Evanston’s participation in STAR Communities is coordinated by the Sustainability Manager under the City Manager’s Office. The Law Department will: Continue to provide legal support to all City departments including but not limited to the preparation of ordinances, resolutions and agreements and contracts as needed to effectively operate the City. The department will continue representation in City labor contracts negotiations, evaluate possible revisions to zoning and planning regulations, evaluate and pursue legal strategies for revenue enhancements, and evaluate new risk management strategies for City departments. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org - ix - The Administrative Services Department will: Include facilities and a new group, Digital Services, effective 2016. The Department will then consist of Digital Services, Information Technology, Human Resources, Facilities, and Parking/Fleet. The Facilities Management Division supports all City departments by providing a functional work environment, including power, lights, HVAC and plumbing. Staff completes over 3,000 work orders and provides over 2,000 hours in preventive maintenance annually. They maintain over 2.1 million sq. ft. of property including 1,129 plumbing fixtures; 294 electrical panels; 3,068 exterior lighting fixtures; 2,294 lock sets and 96 drinking fountains, as well as conduct an annual inspection of 89 RPZ’s (backflow prevention valves, such as in drinking fountains, to prevent contamination of the City’s water supply). The Community Development Department will: Continue neighborhood revitalization and affordable housing. The department will continue to have a special emphasis on the acquisition and rehab of multi-family homes and foreclosed properties as part of housing activity. The department will work to improve connections and expand options for addressing first/last mile networks to transit within Evanston for all community members: residents, commuters, and visitors. The Department will also implement the DIVVY Bike Share. The Police Department will: Strengthen community engagement efforts with commitment to the Law and Your Community Program, a program that reaches both the school and church groups. The Police will attend and participate in Black Male and Black Female summits hosted at Evanston Township High School and participate in all block parties, festivals, holiday events, and sporting events. The Fire Department will: Initiate an “After the Fire Assistance” program through the Fire Prevention Bureau. The Fire Department’s Emergency Management will also work city- wide to prepare all Departments to act, continue to function, and recover, should natural or man-made events adversely affect the city. The Health and Human Services Department will: Learn more about the availability of affordable housing in Evanston. The department will host a job fair for General Assistant clients in partnership with external organizations, recruit 1,000 women for the an nual Women Out Walking event, and host the first inaugural Men’s Health Fair. The Department will work with the State of Illinois to re -certify. The Public Works Agency: Was solidified with funding during the adoption of the 2016 Budget. This group will include the former Public Works Department and Utilities Department functions under four new bureaus: Water Production, Environmental Services, Capital Planning & Engineering, and Infrastructure Maintenance. The Parks, Recreation and Community Services will: Expand recreation opportunities through program development and special events at the Gibbs-Morrison Cultural Center. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.448 8064 www.cityofevanston.org - x - It will also expand the nature-oriented programming at the Ecology Center, as a result of the new room addition to the facility. The Parks’ Department administers the Mayor’s Summer Youth Program with a 2016 goal to employ 750 Evanston youth. To accomplish this goal, the City is soliciting grant support and hiring participation from key stakeholders among Evanston’s business, education, philanthropic and faith-based communities, notable agencies and local citizens. Library operations are shown separately in the City Comprehensive Annual Financial Report as a discrete component unit. The Evanston Public Library 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. The Library will: Further develop partnerships with schools, community organizations, business and City recreation centers to deliver services throughout Evanston. The Library will expand programs and expand print, in-person, and virtual readers’ advisory services to children, teens, and adults throughout Evanston in order to foster a love of reading and learning. FACTORS AFFECTING FINANCIAL CONDITION The following are factors which give a broader context to the financial information contained in this CAFR report. Local Economy: The global economy showed signs of steady recovery in 2015 with leading economic indicators showing moderate increases compared to 2014. Most of the economically sensitive revenues such as Sales Tax, Home Rule Sales Tax, Local Motor Fuel Tax and Use Tax revenues were higher than budgeted revenues. The City of Evanston continues to worry about the State of Illinois’ financial position. As of May 15, 2016 the State continues to operate without a budget since June 30, 2015. State legislators have passed monthly budgets, but have failed to address comprehensive State-wide budget issues which may impact local revenue sources. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended December 31, 2014. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. - xi - FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT The Honorable Elizabeth B. Tisdahl, 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, 2015, 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 America; 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 contained in Government Auditing Standards, issued by the Comptroller General of the United States . Those standards require that we plan and perform the audit to obtain reasonab le 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 presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. - 1 - 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, and the aggregate remaining fund information of the City of Evanston, Illinois, as of December 31, 2015, 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. Change in Accounting Principle As discussed in Note 17, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68, which established standards for measuring and recognizing liabilities, deferred inflows and outflows of resources and expenses; modified certain disclosures in the notes to financial statements ; and the required supplementary information. Our opinion is not modified with respect to this matter. 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 financi al 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 schedules 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 - 2 - 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 statements 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 5, 2016 on our consideration of the City’s internal control over financial reporting and on our tests of 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 Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Naperville, Illinois August 5, 2016 - 3 - (Unaudited) MD&A 1 MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 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 The City changed the treatment of property taxes and included the net pension liabilities associated with Illinois Municipal Retirement, Police and Fire Pension Funds per Government Accounting Standards Board (GASB) Statements 67/68 for the 2015 fiscal year, which reduced property taxes receivables and increased liabilities and resulted in a restatement of net position. A. The City's net position as originally stated in the 2014 Comprehensive Annual Financial Report (CAFR) was $331,236,733 for Governmental and Business Type Activities. The restated net position for 2014 is $194,484,215. The 2015 net position increased by $12,277,934 or 6.3% a. The change in accounting principle amount for Governmental Activities was $135,349,561. b. The change in accounting principle amount for Business-type Activities was $145,013. B. The governmental activities revenue increased by $4,549,034 or 5.0% from the prior period. The expenses decreased by $6,048,249 or 4.7%. C. The business-type activities revenue increased by $982,028 or 2.6%. The expenses decreased by $1,613,897 or 5.1% from the prior period. D. The total cost of all City programs decreased by $7,662,146 or 4.8%. 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 Maintenance 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 - 18 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 19 - 20 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 21 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 82 – 91 of this report. (Unaudited) MD&A 4 Major funds and component units are reported in the basic financial statements, as discussed. Combin ing statements, individual statements and schedules for nonmajor and internal service funds are presented in a subsequent section of this report beginning on page 92. Additional information on capital assets and long-term debt can be found on page 39 and 50, respectively. Financial Analysis of the City as a Whole The City's combined net position increased by $12,277,934 from $194,484,215, as restated, to $206,762,149. STATEMENT OF POSITION The City’s increase in Net Position after consideration of the increased Pension liability, principally comes from the reduction of Long-Term Liabilities in the form of IEPA Loan and G.O. Debt retirement. The City's total revenues decreased by $3,094,252 or 2.3%. The City's total expenses for all programs decreased by $7,662,146 or 4.7%. Business-type activity revenues increased by $982,028 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 decreased by $1,613,897, while Governmental activity expense experienced a decrease of $6,413,392. Governmental Funds: The governmental activities experienced an increase of $4,549,034 in the net position balance. This is primarily due to net revenues of $3,572,742 and a transfer in of $958,678 from business and library activities to the government fund. Business Funds: The business-type activities experienced an increase of $7,728,900 in the net position balance primarily due to the increase in net position in the Sewer Fund in the amount of $5,356,843 and Water Fund of $2,088,207. Governmental Activities Business-type Activities Total Primary Government 2015 2014 2015 2014 2015 2014 Current and Other Assets 97,534,216$ 109,886,723$ 26,300,743$ 29,651,641$ 123,834,959$ 139,538,364$ Capital Assets 166,110,310 161,799,582 339,354,708 335,464,928 505,465,018 497,264,510 Total Assets 263,644,526 271,686,305 365,655,451 365,116,569 629,299,977 636,802,874 Deferred Outflows 30,868,712 - 3,224,853 - 34,093,565 - 294,513,238 271,686,305 368,880,304 365,116,569 663,393,542 636,802,874 Long-Term Liabilities 317,577,205 160,830,581 88,226,770 91,098,072 405,803,975 251,928,653 Other Liabilities 7,167,732 9,969,905 2,246,641 3,424,806 9,414,373 13,394,711 Total Liabilities 324,744,937 170,800,486 90,473,411 94,522,878 415,218,348 265,323,364 Deferred Inflows 41,413,045 40,242,777 - - 41,413,045 40,242,777 Net Investment in Capital Assets 47,952,870 46,633,381 255,621,565 246,381,653 303,574,435 293,015,034 Restricted 22,389,178 25,297,880 - 649,352 22,389,178 25,947,232 Unrestricted (Deficit)(141,986,792) (11,288,219) 22,785,328 23,562,686 (119,201,464) 12,274,467 Restatement - (136,836,820) - 84,302 - (136,752,518) Total Net Position (71,644,744)$ (76,193,778)$ 278,406,893$ 270,677,993$ 206,762,149$ 194,484,215$ (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 2015 2014 2015 2014 2015 2014 Revenue Program Revenues: Charges for services 25,469,276$ 29,987,632$ 38,400,344$ 37,888,383$ 63,869,620$ 67,876,015$ Operating grants and contributions 5,534,565 7,151,449 - 14,557 5,534,565 7,166,006 Capital grants and contributions 275,000 500,089 - - 275,000 500,089 General Revenues: Sales taxes 17,758,320 17,361,749 - - 17,758,320 17,361,749 Property taxes 45,840,494 48,579,267 - - 45,840,494 48,579,267 Utility taxes 7,081,574 7,677,852 - - 7,081,574 7,677,852 Income taxes 8,266,906 7,053,978 - - 8,266,906 7,053,978 Other 15,601,822 11,879,452 301,360 - 15,903,182 11,879,452 Investment income 29,574 (257,657) 26,946 (156,318) 56,520 (413,975) Total Revenue 125,857,531 129,933,811 38,728,650 37,746,622 164,586,181 167,680,433 Expenses General management and support 12,493,241 13,811,748 - - 12,493,241 13,811,748 Public safety 57,442,662 58,794,752 - - 57,442,662 58,794,752 Public works 20,011,068 25,824,781 - - 20,011,068 25,824,781 Health and human resources development 2,910,927 3,836,705 - - 2,910,927 3,836,705 Recreation and cultural opportunities 10,531,792 12,443,348 - - 10,531,792 12,443,348 Housing and economic development 14,793,647 9,357,861 - - 14,793,647 9,357,861 Interest 3,756,570 3,918,961 - - 3,756,570 3,918,961 Water - - 10,748,028 11,977,496 10,748,028 11,977,496 Sewer - - 6,608,184 7,293,022 6,608,184 7,293,022 Solid Waste - - 5,150,448 4,855,695 5,150,448 4,855,695 Motor vehicle parking system - - 7,861,680 7,856,024 7,861,680 7,856,024 Total Expense 121,939,907 127,988,156 30,368,340 31,982,237 152,308,247 159,970,393 Increase (decrease) in net position before transfers 3,917,624 1,945,655 8,360,310 5,764,385 12,277,934 7,710,040 Transfers 631,410 609,866 (631,410) (609,866) - - Increase/(Decrease) in Net Position 4,549,034 2,555,521 7,728,900 5,154,519 12,277,934 7,710,040 Net Position - Beginning (76,193,778) 58,087,521 270,677,993 265,439,172 194,484,215 323,526,693 Net Position - Ending (71,644,744)$ 60,643,042$ 278,406,893$ 270,593,691$ 206,762,149$ 331,236,733$ (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 $37,123,060 as of December 31, 2015 which includes $18,964,955 restricted, $2,276,096 non-spendable, $2,555,982 committed, $11,189,033 assigned and $4,692,976 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 a decrease of $2,515,171. Excess of expenditures over revenues in the amount of $7,114,516 was the result of multiple factors and was also partially offset by inter-fund transfers to the General Fund. The largest factor in revenues not meeting budgeted expectations involved the timing of major building permits. Major construction at Northwestern University was delayed, resulting in building permit revenues being less by $3.0 million. Another major factor in the reduction of fund balance was the change in the treatment of property taxes, which in previous years included an accrual of 60 days for said taxes. This change in treatment was made effective in 2014, which also created a restatement in 2014 ending fund balance. 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. These had previously ben 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. Excluding these payments brings both revenues and expenditures in the General Fund under budget for 2015. The fund balance of the General Obligation Debt Fund had a nominal increase of $552,366, from $2,043,750 to $2,596,116. 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 $37,123,060, a decrease of $5,945,713 from prior period of $43,068,773, as restated. Non-major funds with surpluses for the fiscal year include Motor Fuel, Affordable Housing, Home Fund, Community Development Block Grant, General Assistance, Washington National TIF Howard Ridge TIF, and West Evanston TIF. Nonmajor funds with deficits for the period include Economic Development, Emergency Telephone System, Community Development Loan, NSP 2, SSD #4, Chicago Main TIF, Howard Hartrey TIF, Dempster Dodge 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 increase of $7,728,900 in the net position. The Sewer Fund reported the highest increase in the amount of $5,356,843. This increase is mainly due to the operating surplus and reduced debt service expense. The Water and Parking Funds added $2,088,207 and $374,789 respectively to the net position during the year, offset by a decrease in the Solid Waste Fund of $90,939. 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 increased by $1,811,167 from $7,506,986 as of January 1, 2015, as restated, to $9,318,153 as of December 31, 2015. Fleet Fund and Equipment Replacement reported a combined net increase in net position of $233,877. The net deficit in the Insurance Fund decreased by $1,577,290 mainly due to reduction of potential claim liabilities. General Fund Budgetary Highlights Total budgetary basis revenues for the General Fund were $96,547,441 while total expenditures were $103,661,957. Overall General Fund revenue came in higher than budget by $12,425,487. Total expenditures in the General Fund were higher than budgeted amounts by $14,866,618. The actual net deficiency of $7,114,516 was offset by $4,599,345 in net transfers in from other funds. As noted previously, the inclusion of Police and Firefighter pension revenues and expenditures in the General Fund were not a budgeted item in 2015, but have been budgeted in 2016. Capital Assets The City’s Capital Asset policy includes capitalizing equipment and vehicles with $20,000 or more in value and infrastructure and building improvements with $100,000 or more in value. The City's capital assets (net of depreciation) for governmental and business-type activities as of December 31, 2015, were $505,465,018. The governmental funds capital assets had a net increase of $4,310,728, while business type capital assets increased by $3,889,780. Overall, capital assets increased by 1.7% 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, 2015, the City had outstanding total general obligation bonded debt of $145,641,615 of which $30,957,894 was for business type activities to be paid for by the City's Parking, Water, Solid Waste and Sewer Funds. This represents a $983,064 decrease from 2014. The City's general obligation debt service principal payments for 2015 totaled $13,823,064. During the current year, the City issued $24,170,000 and refunded $11,330,000 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. (Unaudited) MD&A 8 Bond Ratings The City's general obligation bonds are rated Aa1 by Moody's Investor Rating Service and AA+ by Fitch Ratings. The City's water revenue bonds are rated Aaa and AA for uninsured issues. 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 reven ues 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 remains stable, however the County of Cook is completing triennial reassessments and based on individual property analysis, this reassessment could increase Equalized Assessed values for 2016 and 2017. 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. BASIC FINANCIAL STATEMENTS Statement of Net Position Component Unit Governmental Business-Type Evanston Public Activities Activities Total Library ASSETS Cash 31,513,315$ 22,112,524$ 53,625,839$ 5,066,882$ Cash with fiscal agent 2,157,663 - 2,157,663 - Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 39,341,669 - 39,341,669 6,439,721 Utility taxes 695,078 - 695,078 - Accounts - 4,730,215 4,730,215 - Notes 8,826,272 - 8,826,272 - Special assessments 303,578 - 303,578 - Other 1,086,214 - 1,086,214 95 Due from other governments 8,849,902 - 8,849,902 - Due from component unit 505,111 - 505,111 - Internal balances 1,464,686 (1,464,686) - - Inventories 892,809 698,690 1,591,499 - Prepaid items 1,897,919 - 1,897,919 - Other assets - 224,000 224,000 - Capital assets Capital assets not being depreciated 26,201,405 10,541,863 36,743,268 311,380 Capital assets being depreciated, net 139,908,905 328,812,845 468,721,750 12,511,235 Total Assets 263,644,526 365,655,451 629,299,977 24,329,313 DEFERRED OUTFLOWS OF RESOURCES Pension items - Police Pension 8,804,263 - 8,804,263 - Pension items - Fire Pension 7,048,312 - 7,048,312 - Pension items - IMRF 15,016,137 3,224,853 18,240,990 1,595,019 Total Deferred Outflows of Resources 30,868,712 3,224,853 34,093,565 1,595,019 Total Assets and Deferred Outflows of Resources 294,513,238 368,880,304 663,393,542 25,924,332 CITY OF EVANSTON, ILLINOIS December 31, 2015 Primary Government (This statement is continued on the following page.) - 4 - Statement of Net Position Component Unit Governmental Business-Type Evanston Public Activities Activities Total Library LIABILITIES Vouchers payable 5,603,173$ 1,425,998$ 7,029,171$ 286,690$ Retainage payable - 442,425 442,425 - Accrued payroll 600,834 - 600,834 - Accrued interest 374,114 378,218 752,332 - Due to other governments 213,634 - 213,634 505,111 Due to fiduciary fund 47,302 - 47,302 - Unearned revenue 328,675 - 328,675 4,141 Noncurrent liabilities Due within one year 19,790,021 12,121,779 31,911,800 393,002 Due in more than one year 297,787,184 76,104,991 373,892,175 3,218,037 Total Liabilities 324,744,937 90,473,411 415,218,348 4,406,981 DEFERRED INFLOWS OF RESOURCES Pension items - Police Pension 2,032,166 - 2,032,166 - Unavailable property taxes 39,380,879 - 39,380,879 6,439,721 Total Deferred Inflows of Resources 41,413,045 - 41,413,045 6,439,721 Total Liabilities and Deferred Inflows of Resources 366,157,982 90,473,411 456,631,393 10,846,702 NET POSITION Net investment in capital assets 47,952,870 255,621,565 303,574,435 11,179,234 Restricted for Highway maintenance 1,830,393 - 1,830,393 - Emergency telephone system 551,718 - 551,718 - HUD approved projects 223,017 - 223,017 - Neighborhood improvements 3,846,576 - 3,846,576 - Debt service 9,444,030 - 9,444,030 - General assistance 513,239 - 513,239 - Endowment - - - 3,744,525 Unrestricted (136,006,587) 22,785,328 (113,221,259) 153,871 Total Net Position (71,644,744)$ 278,406,893$ 206,762,149$ 15,077,630$ Primary Government CITY OF EVANSTON, ILLINOIS December 31, 2015 See accompanying notes to financial statements. - 5 - Operating Capital Charges for Grants and Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General management and support 12,493,241$ 8,628,641$ 4,171$ -$ Public safety 57,442,662 3,100,381 142,075 - Public works 20,011,068 772,100 2,736,049 150,000 Health and human resource development 2,910,927 1,094,615 181,878 - Recreation and cultural opportunities 10,531,792 5,572,282 200,018 - Housing and economic development 14,793,647 6,301,257 2,270,374 125,000 Interest 3,756,570 - - - Total governmental activities 121,939,907 25,469,276 5,534,565 275,000 Business-Type Activities Water 10,748,028 15,721,606 - - Sewer 6,608,184 12,510,941 - - Solid waste 5,150,448 4,003,542 - - Motor vehicles parking system 7,861,680 6,164,255 - - Total business-type activities 30,368,340 38,400,344 - - Total Primary Government 152,308,247$ 63,869,620$ 5,534,565$ 275,000$ Evanston Public Library Community Services 6,793,557$ 445,800$ 181,283$ -$ Interest 80,802 - - - Total Evanston Public Library 6,874,359$ 445,800$ 181,283$ -$ CITY OF EVANSTON, ILLINOIS Statement of Activities For the Fiscal Year Ended December 31, 2015 Program Revenues - 6 - Component Unit Total Evanston Governmental Business-Type Primary Public Activities Activities Government Library (3,860,429)$ -$ (3,860,429)$ -$ (54,200,206) - (54,200,206) - (16,352,919) - (16,352,919) - (1,634,434) - (1,634,434) - (4,759,492) - (4,759,492) - (6,097,016) - (6,097,016) - (3,756,570) - (3,756,570) - (90,661,066) - (90,661,066) - - 4,973,578 4,973,578 - - 5,902,757 5,902,757 - - (1,146,906) (1,146,906) - - (1,697,425) (1,697,425) - - 8,032,004 8,032,004 - (90,661,066) 8,032,004 (82,629,062) - - - - (6,166,474) - - - (80,802) - - - (6,247,276) General Revenues Taxes Property tax 45,840,494 - 45,840,494 6,518,663 Other taxes 4,144,317 - 4,144,317 - Personal property replacement tax 1,312,384 - 1,312,384 46,059 Sales and home rule tax 17,758,320 - 17,758,320 - Utility tax 7,081,574 - 7,081,574 - Liquor tax 2,531,974 - 2,531,974 - Parking tax 2,614,820 - 2,614,820 - Real estate transfer tax 3,485,534 - 3,485,534 - Income tax 8,266,906 - 8,266,906 - Investment income 29,574 26,946 56,520 (51,046) Gain (loss) on sale of capital assets - 301,360 301,360 - Miscellaneous 1,512,793 - 1,512,793 50,685 Transfers 631,410 (631,410) - - Total 95,210,100 (303,104) 94,906,996 6,564,361 Change in Net Position 4,549,034 7,728,900 12,277,934 317,085 Net Position, January 1 60,643,042 270,593,691 331,236,733 15,764,718 Change in Accounting Principle (135,349,561) (145,013) (135,494,574) (114,845) Prior Period Adjustment (1,487,259) 229,315 (1,257,944) (889,328) Net Position, January 1, Restated (76,193,778) 270,677,993 194,484,215 14,760,545 Net Position, December 31 (71,644,744)$ 278,406,893$ 206,762,149$ 15,077,630$ Primary Government Net (Expense) Revenue and Change in Net Position See accompanying notes to financial statements. - 7 - General Nonmajor Total Obligation Governmental Governmental General Debt Service Funds Funds Cash and equivalents 2,168,922$ 247,613$ 26,844,264$ 29,260,799$ Cash with fiscal agent - 2,157,663 - 2,157,663 Receivables Property taxes 27,177,454 11,049,841 1,114,374 39,341,669 Utility 695,078 - - 695,078 Notes 263,600 - 8,562,672 8,826,272 Special assessments - - 303,578 303,578 Other 263,366 - 816,610 1,079,976 Prepaid items 32,500 - - 32,500 Due from other governments 8,567,535 - 282,367 8,849,902 Due from other funds 2,497,033 206,928 908 2,704,869 Inventory 85,933 - - 85,933 Total Assets 41,751,421$ 13,662,045$ 37,924,773$ 93,338,239$ ASSETS CITY OF EVANSTON, ILLINOIS Balance Sheet Governmental Funds December 31, 2015 (This statement is continued on the following page.) - 8 - General Nonmajor Total Obligation Governmental Governmental General Debt Service Funds Funds Liabilities Vouchers payable 2,187,056$ 16,088$ 2,902,948$ 5,106,092$ Accrued payroll 600,834 - - 600,834 Due to other governments - - 213,634 213,634 Due to other funds 420,934 - 1,005,459 1,426,393 Advances from other funds 596,000 - - 596,000 Unearned revenue 25,097 - 303,578 328,675 Total Liabilities 3,829,921 16,088 4,425,619 8,271,628 Deferred Inflows of Resources Long-term loans - - 8,562,672 8,562,672 Unavailable revenue - property taxes 27,216,664 11,049,841 1,114,374 39,380,879 Total Deferred Inflows of Resources 27,216,664 11,049,841 9,677,046 47,943,551 Total Liabilities and Deferred Inflows of Resources 31,046,585 11,065,929 14,102,665 56,215,179 Fund Balances Nonspendable Cash with fiscal agent - 2,157,663 - 2,157,663 Prepaid items 32,500 - - 32,500 Inventory 85,933 - - 85,933 Restricted Highway maintenance - - 1,830,393 1,830,393 Emergency telephone system - - 551,718 551,718 HUD approved projects - - 223,017 223,017 Neighborhood improvements - - 3,846,576 3,846,576 Debt service - 438,453 9,005,577 9,444,030 Township - - 513,239 513,239 Committed - economic development - - 2,555,982 2,555,982 Assigned Capital improvements - - 5,517,041 5,517,041 Other 5,671,992 - - 5,671,992 Unassigned 4,914,411 - (221,435) 4,692,976 Total Fund Balances 10,704,836 2,596,116 23,822,108 37,123,060 Total Liabilities, Inflows of Resources, and Fund Balances 41,751,421$ 13,662,045$ 37,924,773$ 93,338,239$ December 31, 2015 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 37,123,060$ 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 166,110,310 Less internal service fund portion 8,039,500 158,070,810 OPEB liability payable is not due and payable in the current period and, therefore, is not reported in the governmental funds (1,876,719) Interest payable is not due and payable in the current period and, therefore, not reported in the governmental funds (374,114) 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 (114,683,721) Bonds premium liability (3,473,719) First Bank loan (3,548,812) Compensated absences payable (8,991,381) Net pension liability is shown as a liability on the statement of net position Illinois Municipal Retirement Fund (14,555,442) Police Pension Fund (89,636,697) Firefighters' Pension Fund (76,415,380) 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 15,016,137 Police Pension Fund 6,772,097 Firefighters' Pension Fund 7,048,312 Deferred inflows for long-term loans are not a available and, therefore, not revenue in fund financial statements 8,562,672 The net position of the internal service fund is included in the governmental activities on the statement of net position 9,318,153 Net Position of Governmental Funds (71,644,744)$ December 31, 2015 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 52,628,569$ 11,156,231$ 11,962,206$ 75,747,006$ Licenses and permits 12,184,303 - - 12,184,303 Special assessments - - 147,831 147,831 Intergovernmental 18,998,689 - 4,835,060 23,833,749 Charges for services 8,224,155 - 87,391 8,311,546 Fines and forfeits 3,554,188 - - 3,554,188 Investment income 6,573 7,668 15,339 29,580 Miscellaneous 950,964 - 771,096 1,722,060 Total Revenues 96,547,441 11,163,899 17,818,923 125,530,263 Expenditures Current General management and support 11,753,081 158,835 1,532,104 13,444,020 Public safety 58,461,316 - 1,192,229 59,653,545 Public works 16,866,953 - 2,948,302 19,815,255 Health and human resource development 3,140,999 - - 3,140,999 Recreational and cultural opportunities 11,079,855 - 7,230 11,087,085 Housing and economic development 2,359,753 - 10,932,245 13,291,998 Capital outlay - - 9,151,187 9,151,187 Debt service Principal - 20,033,118 800,000 20,833,118 Interest - 4,324,904 87,826 4,412,730 Fiscal charges - 15,803 250 16,053 Total Expenditures 103,661,957 24,532,660 26,651,373 154,845,990 Excess (Deficiency) of Revenues Over Expenditures (7,114,516) (13,368,761) (8,832,450) (29,315,727) Other Financing Sources (Uses) Issuance of bonds - 11,075,000 7,605,000 18,680,000 Issuance of loans - - 2,900,000 2,900,000 Premium (discount) on bonds issued - 362,986 433,594 796,580 Payment to escrow agent - - - - Transfers in 7,769,334 2,483,141 55,713 10,308,188 Transfers (out)(3,169,989) - (6,144,765) (9,314,754) Total Other Financing Sources (Uses)4,599,345 13,921,127 4,849,542 23,370,014 Net Change in Fund Balances (2,515,171) 552,366 (3,982,908) (5,945,713) Fund Balances, January 1 14,982,966 3,796,787 37,489,946 56,269,699 Prior Period Adjustment (1,762,959) (1,753,037) (9,684,930) (13,200,926) Fund Balances, January 1, Restated 13,220,007 2,043,750 27,805,016 43,068,773 Fund Balances, December 31 10,704,836$ 2,596,116$ 23,822,108$ 37,123,060$ CITY OF EVANSTON, ILLINOIS Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended December 31, 2015 See accompanying notes to financial statements. - 11 - Net Change in Fund Balances Total Governmental Funds (5,945,713)$ 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 11,550,740 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 (7,893,582) 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 (22,376,580) 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 9,503,118 The payment to escrow agent for the amount of bonds refunded is reported as an other other financing use in governmental funds, but as a decrease of principal outstanding in the statement of activities, net of interest to call date 11,330,000 The amortization of premium on long-term debt is reported as a reduction of interest expense on the statement of activities 341,766 Changes in net other postemployment benefits obligations are reported only in the statement of activities (29,770) The change in compensated absences payable is shown as an expense on the statement of activities 787,329 The change in the accrual of interest is reported as interest expense on the statement of activities 330,447 The change in the net pension liability for the is reported only in the statement of activities Illinois Municipal Retirement Fund (10,819,895) Police Pension Fund 3,092,185 Firefighters' Pension Fund (772,891) The change in deferred inflows and outflows of resources for the is reported only in the statement of activities Illinois Municipal Retirement Fund 15,016,137 Police Pension Fund (1,872,099) Firefighters' Pension Fund 520,615 The changed in deferred inflows for long-term loans is not expense on the statement of activities (23,940) Internal service funds are reported separately in the fund financial statements 1,811,167 Change in Net Position of Governmental Activities 4,549,034$ CITY OF EVANSTON, ILLINOIS Reconcilation 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, 2015 See accompanying notes to financial statements. - 12 - CITY OF EVANSTON, ILLINOIS Statement of Net Position Proprietary Funds Governmental Activities - Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds Current Assets Cash and investments 8,921,336$ 2,264,762$ -$ 10,926,426$ 22,112,524$ 2,252,516$ Receivables Accounts - water and sewerage charges Accounts - billed 762,303 362,071 129,972 - 1,254,346 - Accounts - unbilled 1,013,796 1,878,425 570,364 - 3,462,585 - Other - - - 13,284 13,284 6,238 Due from other funds 377,670 - - - 377,670 1,381,752 Inventory 536,817 161,873 - - 698,690 806,876 Prepaid expenses - - - - - 1,865,419 Advances to other funds - - - 596,000 596,000 - Total Current Assets 11,611,922 4,667,131 700,336 11,535,710 28,515,099 6,312,801 Noncurrent Assets Capital assets Property, plant, and equipment Capital assets not being depreciated 6,088,087 4,930 - 4,448,846 10,541,863 - Capital assets being depreciated 96,543,864 252,619,327 - 86,180,180 435,343,371 23,691,619 Less accumulated depreciation (23,752,320) (54,392,730) - (28,385,476) (106,530,526) (15,652,119) Total Capital Assets 78,879,631 198,231,527 - 62,243,550 339,354,708 8,039,500 Other assets Notes receivable - - - 224,000 224,000 - Total Noncurrent Assets 78,879,631 198,231,527 - 62,467,550 339,578,708 8,039,500 Total Assets 90,491,553 202,898,658 700,336 74,003,260 368,093,807 14,352,301 Deferred Outflows of Resources Pension items - IMRF 1,957,775 460,906 303,445 502,727 3,224,853 - Total Deferred Outflow of Resources 1,957,775 460,906 303,445 502,727 3,224,853 - Total Assets and Deferred Outflow of Resources 92,449,328 203,359,564 1,003,781 74,505,987 371,318,660 14,352,301 December 31, 2015 (This statement is continued on the following page.) - 13 - Statement of Net Position Proprietary Funds Governmental Activities - Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds Current Liabilities Vouchers payable 837,933$ 70,929$ 288,962$ 228,174$ 1,425,998$ 497,081$ Retainage payable 391,214 - - 51,211 442,425 - Interest payable - restricted 53,941 - - - 53,941 - Interest payable - 290,756 191 33,330 324,277 - Notes payable - IEPA 109,936 7,155,559 - - 7,265,495 - Current portion of general obligation bonds payable 765,266 380,483 17,945 3,507,122 4,670,816 - Claims payable - - - - - 1,209,500 Due to other funds 305,212 110,981 1,507,972 514,191 2,438,356 141,733 Compensated absences payable 128,788 26,966 6,187 23,527 185,468 19,127 Total Current Liabilities 2,592,290 8,035,674 1,821,257 4,357,555 16,806,776 1,867,441 Noncurrent Liabilities Notes payable - IEPA 1,903,020 42,732,657 - - 44,635,677 - General obligation bonds payable 17,113,885 2,835,338 61,692 7,229,877 27,240,792 - OPEB liability 216,546 60,968 30,504 52,720 360,738 72,331 Net pension liability - IMRF 1,897,710 446,765 294,136 487,304 3,125,915 - Claims payable - - - - - 3,017,868 Compensated absences payable 515,150 107,865 24,748 94,106 741,869 76,508 Total Noncurrent Liabilities 21,646,311 46,183,593 411,080 7,864,007 76,104,991 3,166,707 Total Liabilities 24,238,601 54,219,267 2,232,337 12,221,562 92,911,767 5,034,148 Net Position Net investment in capital assets 58,987,524 145,127,490 - 51,506,551 255,621,565 8,039,500 Unrestricted 9,223,203 4,012,808 (1,228,557) 10,777,874 22,785,328 1,278,653 Total Net Position 68,210,727$ 149,140,298$ (1,228,557)$ 62,284,425$ 278,406,893$ 9,318,153$ CITY OF EVANSTON, ILLINOIS December 31, 2015 See accompanying notes to financial statements. - 14 - For the Fiscal Year Ended December 31, 2015 Water Sewer Solid Waste Operating Revenues Charges for service 15,005,360$ 12,491,290$ 4,003,542$ Miscellaneous 716,246 19,651 - Total Operating Revenues 15,721,606 12,510,941 4,003,542 Operating Expenses Administration 1,473,338 1,587,962 999,691 Operations 6,787,596 29,179 4,148,144 Total Operating Expenses Excluding Depreciation 8,260,934 1,617,141 5,147,835 Operating income (loss) before depreciation 7,460,672 10,893,800 (1,144,293) Depreciation 2,096,633 3,443,723 - Operating Income (Loss)5,364,039 7,450,077 (1,144,293) Non-Operating Revenues (Expenses) Investment income 5,982 2,706 - Interest expense (390,461) (1,547,320) (2,613) Gain (loss) on disposal of capital assets 302,700 - - Total Non-Operating Revenues (Expenses)(81,779) (1,544,614) (2,613) Net Income (Loss) Before Transfers 5,282,260 5,905,463 (1,146,906) Transfers Transfers in - - 1,055,967 Transfers (out)(3,194,053) (548,620) - Total Transfers (3,194,053) (548,620) 1,055,967 Change in Net Position 2,088,207 5,356,843 (90,939) Net Position, January 1 66,279,631 143,784,952 (1,112,075) Change in Accounting Principle (101,305) (18,492) (25,543) Prior Period Adjustment (55,806) 16,995 - Net Position, January 1, Restated 66,122,520 143,783,455 (1,137,618) Net Position, December 31 68,210,727$ 149,140,298$ (1,228,557)$ CITY OF EVANSTON, ILLINOIS Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds - 15 - Governmental Activities - Motor Vehicle Internal Service Parking System Total Funds 6,151,133$ 37,651,325$ 22,410,058$ 13,122 749,019 46,981 6,164,255 38,400,344 22,457,039 1,443,263 5,504,254 - 3,155,750 14,120,669 18,960,703 4,599,013 19,624,923 18,960,703 1,565,242 18,775,421 3,496,336 2,846,227 8,386,583 1,684,835 (1,280,985) 10,388,838 1,811,501 18,258 26,946 136 (416,440) (2,356,834) - (1,340) 301,360 34,286 (399,522) (2,028,528) 34,422 (1,680,507) 8,360,310 1,845,923 2,925,296 3,981,263 - (870,000) (4,612,673) (34,756) 2,055,296 (631,410) (34,756) 374,789 7,728,900 1,811,167 61,641,183 270,593,691 6,066,845 327 (145,013) - 268,126 229,315 1,440,141 61,909,636 270,677,993 7,506,986 62,284,425$ 278,406,893$ 9,318,153$ See accompanying notes to financial statements. - 16 - CITY OF EVANSTON, ILLINOIS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended December 31, 2015 Governmental Motor Vehicle Activities - Parking Internal Service Water Sewer Solid Waste System Total Funds Cash Flows from Operating Activities Receipts from customers and users 16,459,229$ 12,457,105$ 4,014,964$ 6,796,921$ 39,728,219$ 22,476,357$ Receipts from/(payments for) interfund services provided (813,019) 1,165,532 97,218 (953,660) (503,929) 31,001 Payments to suppliers (4,114,792) (742,168) (4,103,218) (3,251,573) (12,211,751) (1,383,945) Payments to employees (5,649,168) (1,295,206) (1,089,141) (1,417,619) (9,451,134) (3,659,820) Payments for insurance premiums - - - - - (14,122,356) Net Cash Provided from Operating Activities 5,882,250 11,585,263 (1,080,177) 1,174,069 17,561,405 3,341,237 Cash Flows from Noncapital Financing Activities Transfers in (out)(3,194,053) (548,620) 1,055,967 - (2,686,706) (34,756) Net Cash from Noncapital Financing Activities (3,194,053) (548,620) 1,055,967 - (2,686,706) (34,756) Cash Flows from Capital and Related Financing Activities Sale of capital assets 2,035,027 - - - 2,035,027 85,036 Acquisition and construction of capital assets (10,725,787) (1,367,906) - (1,916,337) (14,010,030) (2,389,156) Proceeds from general obligation bonds 5,797,694 - - 5,797,694 - Principal paid on general obligation bonds (552,288) (362,931) (16,878) (3,491,805) (4,423,902) - Interest paid on general obligation bonds (398,323) (1,586,495) (2,641) (425,845) (2,413,304) - Proceeds from IEPA loans 1,000,383 219,939 - - 1,220,322 - Principal paid on IEPA loans (67,504) (7,664,305) - - (7,731,809) - Interest paid on IEPA loans - - - - - - Transfers in - - - 2,055,296 2,055,296 - Miscellaneous - - - - - - Net Cash from Capital and Related Financing Activities (2,910,798) (10,761,698) (19,519) (3,778,691) (17,470,706) (2,304,120) Cash Flows from Investing Activities Interest Received 5,982 2,706 - 18,258 26,946 136 Net Cash from Investing Activities 5,982 2,706 - 18,258 26,946 136 Net Increase (Decrease) in Cash and Cash Equivalents (216,619) 277,651 (43,729) (2,586,364) (2,569,061) 1,002,497 Cash and Equivalents Beginning 9,137,955 1,987,111 43,729 13,512,790 24,681,585 1,250,019 Ending 8,921,336$ 2,264,762$ -$ 10,926,426$ 22,112,524$ 2,252,516$ (This statement is continued on the following page.) - 17 - CITY OF EVANSTON, ILLINOIS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended December 31, 2015 Governmental Motor Vehicle Activities - Parking Internal Service Water Sewer Solid Waste System Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided for Operating Activities Operating income (loss)5,364,039$ 7,450,077$ (1,144,293) (1,280,985) 10,388,838 1,811,501$ Adjustments to reconcile operating income to net cash provided by (used for) operating activities Depreciation 2,096,633 3,443,723 - 2,846,227 8,386,583 1,684,835 Changes in assets and liabilities Accounts receivable 737,623 (53,836) 11,422 627,666 1,322,875 19,318 Notes receivable - - - 5,000 5,000 - Interfund receivable 182,477 1,888,553 677,899 (596,000) 2,152,929 460,100 Prepaid expenses - - - - - 591,533 Inventories (12,283) (29,826) - - (42,109) (55,728) Compensated absences 16,274 (9,526) (7,125) (16,636) (17,013) (24,971) OPEB liability 27,809 6,491 6,133 3,603 44,036 10,226 Pension items - IMRF (547,098) (128,800) (84,797) (140,486) (901,181) - Vouchers payable (1,378,942) (258,572) 41,265 32,129 (1,564,120) (10,880) Retainage payable 391,214 - - 51,211 442,425 - Interfund payable (995,496) (723,021) (580,681) (357,660) (2,656,858) (429,099) Claims payable - - - - - (715,598) Net Cash Provided for Operating Activities 5,882,250$ 11,585,263$ (1,080,177)$ 1,174,069.00$ 17,561,405$ 3,341,237$ See accompanying notes to financial statements. - 18 - CITY OF EVANSTON, ILLINOIS Statement of Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended December 31, 2015 Pension Trust Assets Investments at fair value Cash and cash equivalents 3,377,187$ U.S. Treasury obligations 19,217,626 U.S. agency obligations 18,057,442 Corporate bonds 22,695,256 Common stock 23,981,521 Equity mutual funds 77,442,303 Receivables Accrued interest 501,163 Due from other governments 47,302 Other 2,592 Total Assets 165,322,392 Liabilities Accounts payable 22,471 Total Liabilities 22,471 Net Position Held in Trust For Pension Benefits 165,299,921$ See accompanying notes to financial statements. - 19 - CITY OF EVANSTON, ILLINOIS Statement of Changes in Plan Net Position Pension Trust Funds For the Fiscal Year Ended December 31, 2015 Additions Contributions - employer 15,189,507$ Contributions - plan members 2,410,812 Miscellaneous income 47 Total Contributions 17,600,366 Investment income Net depreciation in fair value of investments (2,988,091) Interest on investments 4,108,627 Less investment expenses (375,754) Total Investment Income 744,782 Total Additions 18,345,148 Deductions Administration 201,842 Benefit payments 18,429,497 Refunds of contributions 63,424 Total Deductions 18,694,763 Net Decrease (349,615) Net Position Held in Trust For Pension Benefits 167,929,254 Prior Period Adjustment (2,279,718) January 1, Restated 165,649,536 December 31 165,299,921$ January 1 See accompanying notes to financial statements. - 20 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 Page(s) Note 1 Summary of Significant Accounting Policies A. Reporting Entity 24-25 B. Government-Wide and Fund Financial Statements 25 C. Fund Accounting 26 D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 27-29 E. Cash Equivalents 29 F. Investments 29 G. Inventories and Prepaid Items 29 H. Capital Assets 30 I. Compensated Absences 30 J. Long-Term Obligations 30 K. Self-Insurance 31 L. Deferred Inflows of Resources 31 M. Property Taxes 31 N. Fund Equity 32 O. Interfund Transactions 32 P. Use of Estimates 33 Q. Conduit Debt 33 Note 2 Stewardship, Compliance, and Accountability A. Budgetary Information 34-35 B. Deficit Fund Equity 35 Note 3 Deposits With Financial Institutions and Investments A. Types of Accounts and Securities 36 B. Pooling Cash and Investments 36 C. Types of Investments 36-37 D. Deposits 37 Note 4 Receivables A. Summary of Receivables 38 B. Notes Receivable - Special Revenue Funds 38 - 21 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 Page(s) (Continued from the previous page) Note 5 Capital Assets A. Capital Asset Activity 39-41 B. Construction Commitments 41 Note 6 Interfunds A. Interfund Accounts 42-45 B. Interfund Advances 45 C. Interfund Transfers 46-48 Note 7 Operating Leases 49 Note 8 Long-Term Debt A. Changes in Long-Term Debt 50-51 B. General Obligation Bonds Payable 52 C. Special Service District Bonds Payable 52 D. Notes Payable - IEPA Loans 53 E. Loan with First Bank & Trust, Evanston 53 F. Postemployment Benefits other than Pensions (Defined Benefit Plan)53-56 Note 9 Fund Equity A. Restricted Net Position - Fiduciary Funds 56 B. Assigned Fund Balances 56 Note 10 Individual Fund Activities A. General Obligation Debt Service Fund 57 B. Water Fund 57 C. Special Service District No. 4 57 Note 11 Risk Management - Claims and Judgements 58 Note 12 Contingencies 59 Note 13 Joint Ventures A. Solid Waste Agency of Northern Cook County 59-60 B. Evanston Housing Corporation 60 - 22 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 Page(s) (Continued from the previous page) Note 14 Employee Retirement Systems A. Plan Descriptions 61-74 Note 15 Pension Trust Funds A. Schedule of Net Position 75 B. Changes in Plan Net Position 76 Note 16 Evanston Library Component Unit A. Types of Accounts and Securities 77 B. Reconciliation of Cash and Investments 78 C. Summary Receivables 78 D. Capital Assets Activity 78 E. Long-Term Debt 79 F. Prior Period Adjustment 80 Note 17 Prior Period Adjustment 81 Note 18 Subsequent Event 81 - 23 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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. - 24 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 two joint ventures,which are reported as non-equity governmental joint ventures and are described in Footnote 13.The joint ventures are:Solid Waste Agency of Northern Cook County (SWANCC)and Evanston Housing Corporation. 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 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 .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. 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. - 25 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C.Fund Accounting 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. 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 earmarked monies (special revenue funds),the acquisition or construction of general capital assets (capital projects funds),and the servicing of general long-term debt (debt service funds).The General Fund is used to account for all activities of the City not accounted for in some other fund.All Township funds are considered special revenue funds within the governmental funds category. - 26 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 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. 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. 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.For this purpose,the City and the Library considers property taxes as available if they are collected within 60 days of the end of the current fiscal period.A six-month availability period is used for revenue recognition for all other governmental fund revenues.Expenditures generally are recorded when a liability is incurred,as under accrual accounting.However,debt service expenditures,as well as expenditures related to compensated absences,are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be made early in the following year. - 27 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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. - 28 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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. 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. Investments consist of certificates of deposit,treasury obligations,government agency obligations,and insurance contracts with maturities greater than one year.Investments for the pension funds are mostly comprised of treasury obligations, government agency obligations,fixed income and equity mutual funds,and stocks.Investments of the pension trust funds are carried at fair value.Investments with over one year to maturity are reported at fair value.All other investments are stated at cost or,for U.S.government securities,amortized cost.These securities may be purchased at a premium or discount which is amortized over the life of the investment. This valuation method approximates fair value. - 29 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 5-15 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. No interest was capitalized during the year. 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. Capital assets,which include property,plant,and equipment and infrastructure assets (e.g.roads,sidewalks,trails,bridges, and similar items),are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.Capital assets are defined by the government as equipment and vehicles with an initial,individual cost of more than $20,000,or infrastructure,buildings,or building improvements with an initial,individual cost of more than $100,000.Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.Donated capital assets are recorded at estimated fair market value at the date of donation. 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: - 30 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K.Self-Insurance L.Deferred Inflows 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 2014 tax levy received during the fiscal period between January 1,2015 and December 31,2015 and all property tax collections related to the 2014 tax levy and received within 60 days after the end of the fiscal period.A 2%allowance for loss is reflected in the City and the Library financial statements. A 4% allowance for loss is reflected in the Town Fund and General Assistance Fund. The 2015 tax levy collections are intended to finance the 2016 fiscal year and are not considered available for current operations and are, therefore, shown as unavailable/deferred revenue. Property taxes are collected by the Cook County Collector and are remitted periodically to all taxing bodies,including the City,the Library,and the Township.Distributions are made more often during the two main collection periods.Property taxes are levied on a calendar year basis by passage of a tax levy ordinance. 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 position 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 position that applies to a future period(s)and so will not be recognized as an inflow of resources (revenue) until that time. - 31 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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. 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. - 32 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 31,2015, outstanding bond balance was $13,385,000. 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 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, 2015, outstanding bond balance was $4,550,000. 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. - 33 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A.Budgetary Information The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. 2.Public budget hearings are conducted. Taxpayer comments are received and noted. 3.The budget is legally enacted through passage of a resolution. 4. 5. Blended Component Unit: Discrete Component Unit: 1. 2. 3. Because of a calendar year,the Library Director submits a proposed operating budget for the upcoming fiscal year commencing January 1,2015 to the EPL Board of Trustees.Upon approval of the budget proposal by the EPL Board,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. A series of public Library Board meetings are conducted as the EPL Board considers the budget proposal. Taxpayer comments are received and noted. The budget is legally enacted through passage of a resolution by the Library Board of Trustees. The Library follows these procedures in establishing the budgetary data reflected in the financial statements: 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 1,2015.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 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 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 Dempster Dodge TIF Fund was not budgeted. For the first five months of 2014,the Township was a blended component unit with two separate funds (the Town Fund and the General Assistance Fund)as reported in previous years.On May 1,2014,after a referendum vote, the City took over the Township's unctions and the Township was eliminated. The Township follows procedures similar to those of the City in establishing the budgetary data reflected in the financial statements. The budget was not amended during the current fiscal period. - 34 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued A.Budgetary Information - Continued Discrete Component Unit (Continued): 4. 5. Fund Actual Budget Variance General Fund $ 89,210,385 $ 89,045,880 $ 164,505 Community Development Loan 282,380 187,100 95,280 Special Service District No. 4 323,000 320,000 3,000 Southwest Tax Increment District 893,387 861,217 32,170 Library 6,602,154 6,303,124 299,030 B.DEFICIT FUND EQUITY 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. The Howard Ridge Tax Increment District Fund had a net deficit of $28,621 as of December 31,2015.The City plans to use current resources to pay for future liabilities. 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 Special Service District No.4 had a net deficit of $190,544 as of December 31,2015.The City plans to use current resources to pay for future liabilities. The following funds had an excess of actual budgetary expenditures over original and final budget for the fiscal year ended December 31, 2015: The Solid Waste Fund had a net deficit of $1,228,557 as of December 31,2015.The City plans to use current resources to pay for future liabilities. The Insurance Fund,an internal service fund,had a net deficit of $364,496 as of December 31,2015.The City plans to use current resources to pay for future liabilities. - 35 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year ended December 31, 2015 NOTE 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS A.Types of Accounts and Securities B.Pooling of Cash and Investments C.Types of Investments Illinois Funds $ 8,388,837 PMA 18,015,321 IMET money market 3,731,291 $ 30,135,449 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 Standard &Poor's 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%.Illinois Funds and IMET are investment pools managed by the State of Illinois,Office of the Treasurer,and a Board of Trustees,respectively,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 triple A 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 fund’s share price, the price for which the investments could be sold. 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. 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. - 36 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year ended December 31, 2015 NOTE 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued C.Types of Investments - Continued D.Deposits 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. 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. Deposits consist of deposits in interest-bearing and non-interest-bearing checking accounts.At December 31,2015,the carrying amount of the City's deposits,including cash on hand of $12,547 was $25,303,264.The financial institutions'balances totaled $26,705,817. 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 $636,088.The City believes that it will recover the remaining value of the investment. Concentration of Credit Risk.It is the policy of the City to diversify its investment portfolio.Investments shall be diversified to eliminate the risk of loss resulting from overconcentration in a security,maturity,issuer,or class of securities.At December 31, 2015, the City had 59.8% of investments held at PMA. - 37 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 4.RECEIVABLES A.Summary of Receivables Motor General Vehicle Nonmajor General Obligation Solid Parking and Other Fund Debt Water Sewer Waste System Funds Total Receivables: Property taxes 27,732,095$ 11,275,348$ -$ -$ -$ -$ 1,137,117$ 40,144,560$ Utility taxes:695,078 - - - - - - 695,078 Accounts - - 1,776,099 2,240,496 700,336 - - 4,716,931 Notes 263,600 - - - - - 8,562,672 8,826,272 Special assessments - - - - - - 307,859 307,859 Due from other govts.8,567,535 - - - - - 816,610 9,384,145 Other 477,972 - - - - 237,284 303,577 1,018,833 Gross receivables 37,736,280 11,275,348 1,776,099 2,240,496 700,336 237,284 11,127,835 65,093,678 Less: allowance for uncollectibles (579,441) (225,507) - - - - (22,743) (827,691) Net Total Receivables 37,156,839$ 11,049,841$ 1,776,099$ 2,240,496$ 700,336$ 237,284$ 11,105,092$ 64,265,987$ B.Notes Receivable - Special Revenue Funds Interest Loans Loan Rates Beginning Made Repayments Ending 0% - 8%8,508,612$ 371,924$ 317,864$ 8,562,672$ Receivables as of December 31,2015 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: 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.Property taxes levied for the subsequent year less those collected within 60 days of year end are not earned and can not be used 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.At the end of the current fiscal period,the City's deferred inflows of resources consisted solely of property taxes levied for the subsequent years less those collected within 60 days of year end. The City makes loans to the City's residents for the rehabilitation of single-family and multi-family housing.Initial funding for these loans was from Community Development Block Grant (CDBG)and Housing and Urban Development (HUD)Funds.Two types of loans are made:(1)title transfer loans which are due in full when the housing unit is sold,and (2)amortizing loans which are due in monthly installments over varying lengths of time.Repayments of principal and any interest earned on these receivables,which are recorded in the respective Special Revenue Funds,are used to make additional rehabilitation loans.An allowance of $78,000 exists in the Special Revenue Funds due to doubtful accounts. Loan activity for the current period is summarized as follows: - 38 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 5. CAPITAL ASSETS A. Capital Asset Activity Capital asset activity for the fiscal year ended December 31, 2015 was as follows: Beginning Additions Deletions Transfers Ending Governmental activities: Capital assets, not being depreciated: Land 7,212,044$ -$ -$ -$ 7,212,044$ Right of way 18,695,896 - - - 18,695,896 Artwork 155,000 - - - 155,000 Construction in progress - 138,465 - - 138,465 Total Capital Assets, not being Depreciated 26,062,940 138,465 - - 26,201,405 Capital assets, being depreciated/amortized: Buildings and improvements 79,289,550 1,236,617 - - 80,526,167 Office equipment and furniture 4,355,010 1,109,811 - 1,420 5,466,241 Intangible assets 6,906,834 362,638 - (1,420) 7,268,052 Machinery and equipment 24,673,009 2,389,155 944,696 - 26,117,468 Infrastructure 163,094,801 8,703,209 - - 171,798,010 Capitalized leases 502,532 - - - 502,532 Total Capital Assets being Depreciated/Amortized 278,821,736 13,801,430 944,696 - 291,678,470 Less accumulated depreciation/amortization for: Buildings and improvements 32,960,223 1,658,601 - - 34,618,824 Office equipment and furniture 3,288,569 207,770 - - 3,496,339 Intangible assets 5,802,981 152,286 - - 5,955,267 Machinery and equipment 16,505,598 1,797,861 894,408 - 17,409,051 Infrastructure 84,058,408 5,759,483 - - 89,817,891 Capitalized leases 469,315 1,954 - - 471,269 Total Accumulated Depreciation/Amortization 143,085,094 9,577,955 894,408 - 151,768,641 Total Capital Assets being Depreciated/Amortized, Net 135,736,642 4,223,475 50,288 - 139,909,829 Governmental Activities Capital Assets, Net 161,799,582$ 4,361,940$ 50,288$ -$ 166,111,234$ - 39 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year ended December 31, 2015 NOTE 5. CAPITAL ASSETS - Continued A. Capital Asset Activity - Continued Beginning Additions Deletions Ending Business-type activities: Capital assets, not being depreciated: Land 4,644,510$ -$ -$ 4,644,510$ Construction in progress 2,463,073 4,741,809 1,667,281 5,537,601 Artwork 359,752 - - 359,752 Total Capital Assets, not being Depreciated 7,467,335 4,741,809 1,667,281 10,541,863 Capital assets, being depreciated/amortized: Land improvements 3,925,463 985,681 - 4,911,144 Buildings and improvements 77,282,216 - - 77,282,216 Leasehold improvements 304,052 - - 304,052 Plant 42,176,651 1,433,872 924,661 42,685,862 Transmission and distribution system 49,257,816 4,215,269 - 53,473,085 Sewer system and underground lines 249,439,877 1,295,207 - 250,735,084 Intangible assets 509,834 750,424 - 1,260,258 Equipment 3,086,113 87,284 340,755 2,832,642 Parking meters 1,698,308 160,720 - 1,859,028 Total Capital Assets being Depreciated/Amortized 427,680,330 8,928,457 1,265,416 435,343,371 Less accumulated depreciation/amortization for: Land improvements 1,631,955 141,290 - 1,773,245 Buildings and improvements 22,197,612 2,462,535 - 24,660,147 Leasehold improvements 302,753 - 20,222 282,531 Plant 15,311,894 1,411,291 865,721 15,857,464 Transmission and distribution system 6,934,574 636,142 - 7,570,716 Sewer system and underground lines 49,589,233 3,404,364 - 52,993,597 Intangible assets 315,774 106,182 - 421,956 Equipment 2,373,535 100,425 314,428 2,159,532 Parking meters 686,984 124,354 - 811,338 Total Accumulated Depreciation/Amortization 99,344,314 8,386,583 1,200,371 106,530,526 Total Capital Assets being Depreciated/Amortized, Net 328,336,016 541,874 65,045 328,812,845 Governmental Activities Capital Assets, Net 335,803,351$ 5,283,683$ 1,732,326$ 339,354,708$ - 40 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year ended December 31, 2015 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 524,767$ Public safety 559,653 Public works 4,992,044 Housing and Economic Development 7,363 Recreation and cultural opportunities 1,809,293 Internal Service Funds 1,684,835 Total Depreciation Expense - Governmental Activities 9,577,955$ Business-Type Activities: Water 2,096,633$ Sewer 3,443,723 Motor vehicle parking 2,846,227 Total Depreciation Expense - Business-Type Activities 8,386,583$ B.Construction Commitments Capital Improvement Fund 5,487,986$ Water Fund 140,014 Total Construction Commitments 5,628,000$ The value of construction contracts signed, where the work has not yet been performed at December 31, 2015 is as follows: - 41 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6.INTERFUNDS A. Interfund Accounts At December 31, 2015, interfund receivables and payables consist of the following: Due Due Funds From To Governmental Funds General Fund General Assistance 4,369$ -$ Library 23,686 Library Debt Service 104,987 - Neighborhood Stabilization Program 2 635 - Special Service Area (SSA) No. 4 190,544 - Community Development Block Grant 20,647 - Washington National TIF Debt Service 243,775 - General Obligation Debt Service - 206,928 Howard/Ridge TIF 157,361 - Capital Improvements 60,402 - Special Assessment - 908 Motor Vehicle Parking System 415,054 - Insurance - 40,045 Water - 102,065 Sewer 61,769 - Solid Waste 1,237,490 - 2,497,033 373,632 Fiduciary Firefighters' Pension - 31,737 Police Pension - 15,565 - 47,302 Total General Fund 2,497,033 420,934 Debt Service Fund General 206,928 - Nonmajor Governmental Funds Special Assessment Fund General Fund 908 - Special Service Area (SSA) No. 4 General - 190,544 Howard Hartrey TIF Insurance - 12,334 Washington National TIF Debt Service General - 243,775 Insurance - 28,333 Total Washington National TIF Debt Service - 272,108 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. - 42 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6. INTERFUNDS - Continued A. Interfund Accounts - Continued Due Due Funds From To Nonmajor Governmental Funds - Continued Howard/Ridge TIF General -$ 157,361$ Insurance - 5,000 Total Howard/Ridge TIF - 162,361 West Evanston TIF Insurance - 5,000 Capital Improvements General - 60,402 Water - 275,605 Total Capital Improvement - 336,007 Neighborhood Stabilization Program 2 General - 635 Insurance - 128 Total Neighborhood Improvement - 763 Community Development Block Grant General 20,647 Insurance - 1,212 Total Community Development Block Grant - 21,859 HOME Insurance - 114 General Assistance General - 4,369 Total Nonmajor Governmental Funds 908 1,005,459 Total Governmental Funds 2,704,869 1,426,393 Enterprise Funds Water General 102,065 - Capital Improvement 275,605 - Insurance - 305,212 Total Water 377,670 305,212 Sewer General 61,769 Insurance - 49,212 Total Sewer - 110,981 Solid Waste General 1,237,490 Insurance - 270,482 Total Sewer - 1,507,972 - 43 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6. INTERFUNDS - Continued A. Interfund Accounts - Continued Due Due Funds From To Enterprise Funds - Continued) Motor Vehicle Parking System General -$ 415,054$ Insurance - 99,137 Total Motor Vehicle Parking System - 514,191 Total Enterprise Funds 377,670 2,438,356 Internal Service Funds Insurance General 40,045 - Library 423,810 - Neighborhood Stabilization Program 2 128 - Community Development Block Grant 1,212 - Home 114 - Washington National TIF Debt Service 28,333 - Howard/Ridge TIF 12,334 - Debt Service 5,000 - West Evanston TIF 5,000 - Motor Vehicle Parking System 99,137 - Fleet Services 141,733 - Water 305,212 - Sewer 49,212 - Solid Waste 270,482 - Total Insurance 1,381,752 - Fleet Services Insurance - 141,733 Total Internal Service Funds 1,381,752 141,733 Trust and Agency Funds Firefighters' Pension General 31,737 - Police Pension General 15,565 - Total Trust and Agency Funds 47,302 - Total Primary Government 4,511,593$ 4,006,482$ - 44 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6. INTERFUNDS - Continued A. Interfund Accounts - Continued Due Due Funds From To Library Fund General 23,686$ -$ Insurance - 423,810 Total 185 Library Fund 23,686 423,810 Library Debt Service General - 104,987 Total Library 23,686$ 528,797$ B. Interfund Advances At December 31, 2015, interfund advances consist of the following: Advances Advances Funds To From Governmental Funds General Fund Motor Vehicle Parking System -$ 596,000$ Total General Fund -$ 596,000$ Enterprise Funds Motor Vehicle Parking System General Fund 596,000$ -$ Total Motor Vehicle Parking System 596,000$ -$ - 45 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6.INTERFUNDS - Continued C. Interfund Transfers At December 31, 2015, transfers in (out) consist of the following: Transfers Transfers Funds In Out Governmental Funds General Fund Home 26,990$ -$ Emergency Telephone System 129,729 - Community Development Block Grant 447,002 - Neighborhood Stabilization Program 2 - 8,213 Washington National TIF Debt Service 340,000 - Howard Hartrey TIF 148,010 - Capital Improvement Fund 490,000 - Water 3,194,053 - Sewer 320,550 - Motor Vehicle Parking System 870,000 - Solid Waste - 1,055,967 Howard/Ridge TIF 60,000 - Motor Fuel Tax 833,000 - West Evanston TIF 60,000 - General Obligation Debt Service Fund - 2,105,809 Economic Development 600,000 - Library 250,000 - Total General Fund 7,769,334 3,169,989 General Obligation Debt Service Fund General 2,105,809 - Insurance 34,756 - Sewer 228,070 - Economic Development 14,782 - Neighborhood Stabilization Program 2 4,191 - Emergency Telephone System 12,038 - Community Development Block Grant 6,227 - Library 77,268 - Total General Obligation Debt Service Fund 2,483,141 - 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. - 46 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6.INTERFUNDS - Continued C. Interfund Transfers - Continued Transfers Transfers Funds In Out Nonmajor Governmental Funds Economic Development Howard/Ridge TIF 47,500$ -$ General Obligation Debt Service Fund - 14,782 General - 600,000 Total Economic Development 47,500 614,782 Howard Hartrey TIF General - 148,010 Howard/Ridge TIF Economic Development - 47,500 General - 60,000 Total Howard/Ridge TIF - 107,500 Washington National TIF Debt Service General - 340,000 Motor Vehicle Parking System - 2,925,296 Total Washington National TIF Debt Service - 3,265,296 West Evanston Tax Increment District General - 60,000 Capital Improvements General - 490,000 Total Capital Improvement - 490,000 Neighborhood Stabilization Program 2 General Obligation Debt Service - 4,191 General 8,213 - Total Neighborhood Stabilization Program 2 8,213 4,191 Emergency Telephone System General Obligation Debt Service - 12,038 General - 129,729 Total Emergency Telephone System - 141,767 Motor Fuel Tax General - 833,000 Community Development Block Grant General Obligation Debt Service - 6,227 General - 447,002 Total Community Development Block Grant - 453,229 Home Fund General - 26,990 Total Nonmajor Governmental Funds 55,713 6,144,765 Total Governmental Funds 10,308,188 9,314,754 - 47 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 6.INTERFUNDS - Continued C. Interfund Transfers - Continued Transfers Transfers Funds In Out Enterprise Funds Water General -$ 3,194,053$ Total Water - 3,194,053 Sewer General - 320,550 General Obligation Debt Service Fund - 228,070 Total Sewer - 548,620 Motor Vehicle Parking System General - 870,000 Washington National TIF Debt Service 2,925,296 - Total Motor Vehicle Parking System 2,925,296 870,000 Solid Waste General 1,055,967 - Total Enterprise Funds 3,981,263 4,612,673 Internal Service Funds Insurance Fund Debt Service Fund - 34,756 Total Internal Service Fund - 34,756 Total Primary Government 14,289,451 13,962,183 Component Unit Library General - 250,000 Debt Service Fund - 77,268 Total Library - 327,268 Total 14,289,451$ 14,289,451$ Note - Transfers between the primary government and component unit have been reclassified on the statement of activities. - 48 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 12/31/2016 $ 4,500 Year ending 12/31/2017 4,500 Year ending 12/31/2018 1,500 10,500$ 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. - 49 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 8.LONG-TERM DEBT A. Changes in Long-Term Debt Final Balance Interest Maturity 12/31/2014 Restated/ Balance Due Within Rate Date (Restated)Issued Refunded Payments 12/31/2015 One Year G.O. Debt Governmental Activities Series 2006 3.85%-5.00%12/1/2026 9,180,000$ -$ -$ 340,000$ 8,840,000$ 685,000$ Series 2006B 4.00%-4.25%12/1/2023 14,340,000 - 11,330,000 1,130,000 1,880,000 1,880,000 Series 2007 4.00%-5.00%12/1/2016 12,043,390 - - 1,308,711 10,734,679 1,063,055 Series 2008A 3.00%-5.00%12/1/2021 2,420,000 - - 305,000 2,115,000 305,000 Series 2008C 3.00%-5.00%12/1/2028 7,762,620 - - 410,040 7,352,580 426,120 Series 2008D 3.25%-5.00%12/1/2016 931,840 - - 736,320 195,520 195,520 Series 2010A 2.00%-3.625%12/1/2029 5,350,000 - - - 5,350,000 310,000 Series 2010B 1.00%-3.30%12/1/2019 4,155,616 - - 726,711 3,428,905 772,652 Series 2011A 2.00%-4.50%12/1/2031 11,643,054 - - 542,634 11,100,420 550,432 Series 2012A (SSA#5)2.00%-3.25%12/1/2032 795,000 - - 390,000 405,000 405,000 Series 2012A 2.00%-3.25%12/1/2032 7,870,000 - - 295,000 7,575,000 285,000 Series 2013A 2.00%-4.75%12/1/2033 10,545,000 - - 450,000 10,095,000 455,000 Series 2013B 2.00%-3.00%12/1/2025 20,455,319 - - 2,593,702 17,861,617 2,538,164 Series 2014 1.25%-5.00%12/1/2034 9,345,000 - - 275,000 9,070,000 370,000 Series 2015A - 7,605,000 - - 7,605,000 265,000 Series 2015B - 11,075,000 - - 11,075,000 1,000,000 Subtotal Governmental Activities 116,836,839 18,680,000 11,330,000 9,503,118 114,683,721 11,505,943 Bonds premium 3,018,905 79,680 - 341,766 2,756,819 - OPEB liability - City 1,846,949 1,021,605 - 991,835 1,876,719 - OPEB liability - Internal Service Funds 62,105 10,659 - 433 72,331 - Net pension liability - IMRF 3,735,547 10,819,895 - - 14,555,442 - Net pension liability - Police Pension 92,728,882 5,832,214 - 8,924,399 89,636,697 - Net pension liabilitiy - Firefighters' Pension 75,642,489 3,989,662 - 3,216,771 76,415,380 - Compensated absences payable - City 9,778,710 2,783,424 - 3,570,753 8,991,381 3,506,639 Compensated absences payable - Internal Service Funds 120,606 22,065 - 47,036 95,635 19,127 First Bank loan 648,812 2,900,000 - - 3,548,812 3,548,812 Claims payable 4,942,965 239,500 - 955,097 4,227,368 1,209,500 Subtotal Other G.A. Liabilities 192,525,970 27,698,704 - 18,048,090 202,176,584 8,284,078 Total Governmental Activity Debt and Liabilities 309,362,809$ 46,378,704$ 11,330,000$ 27,551,208$ 316,860,305$ 19,790,021$ G.O. Debt Business-Type Activities Series 2007 Sewer 4.00%-5.00%12/1/2016 670,000$ -$ -$ 210,000$ 460,000$ 225,000$ Series 2007 Parking 4.00%-5.00%12/1/2016 480,000 - - 150,000 330,000 160,000 Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 8,430,000 - - 2,090,000 6,340,000 2,095,000 Series 2008C Sewer 3.00%-5.00%12/1/2028 1,892,380 - - 99,960 1,792,420 103,880 Series 2010B W/S/San/Pkg 1.00%-3.30%12/1/2019 819,383 - - 143,289 676,094 152,347 Series 2011A W/S 2.00%-4.50%12/1/2031 3,571,944 - - 167,366 3,404,578 169,569 Series 2012A 2.00%-3.25%12/1/2032 4,130,000 - - 175,000 3,955,000 180,000 Series 2013A - Water 2.00%-4.75%12/1/2033 1,945,000 - - 75,000 1,870,000 80,000 Series 2013B 2.00%-3.00%12/1/2025 5,149,133 - - 1,139,331 4,009,802 1,225,020 Series 2014 1.25%-5.00%12/1/2034 2,700,000 - - 70,000 2,630,000 100,000 Series 2015A - 5,490,000 - - 5,490,000 180,000 Subtotal Business-Type Activities 29,787,840 5,490,000 - 4,319,946 30,957,894 4,670,816 IEPA loans 2.535%-3.59%Various 58,412,659 1,220,322 - 7,731,809 51,901,172 7,265,495 Bonds premium 778,257 307,694 - 132,237 953,714 - Compensated absences payable - City 944,350 285,178 - 302,191 927,337 185,468 Net pension liability - IMRF 802,243 2,323,672 - - 3,125,915 - OPEB liability 316,702 54,377 - 10,341 360,738 - Subtotal Other Business-Type Activity Liabilities 2,841,552 2,970,921 - 444,769 5,367,704 185,468 Total Business-Type Activities Debt and Liabilities 91,042,051$ 9,681,243$ -$ 12,496,524$ 88,226,770$ 12,121,779$ Total Governmental and Business-Type Activities Debt and Liabilities 400,404,860$ 56,059,947$ 11,330,000$ 40,047,732$ 405,087,075$ 31,911,800$ Note: Sewer Fund, Water Fund, Solid Waste, 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 Funds have been used to liquidate other postemployment benefit obligations. - 50 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 132,811,181$ 51,901,172$ Total Business-Type Activities - IEPA Loan Debt 51,901,172$ 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 $132,811,181 in IEPA loans issued in 1994 through 2015. 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 2035.Annual principal and interest on the loans are expected to require $8,519,109 of net revenues for the fiscal year 2016.The total principal and interest remaining to be paid on the loans is $58,395,578.Principal and interest paid for the current period and total customer net revenues were $9,162,225 and $11,187,723, respectively. - 51 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 8. LONG-TERM DEBT - Continued B.General Obligation Bonds Payable Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2016 11,505,943$ 4,286,101$ 4,670,816$ 1,152,432$ 2017 10,123,864 3,729,533 5,257,126 991,172 2018 9,551,234 3,442,466 4,216,935 771,659 2019 9,379,112 3,147,508 1,079,134 626,774 2020 8,731,738 2,839,537 927,483 589,262 2021-2025 37,629,433 9,713,172 5,176,688 2,388,417 2026-2030 19,612,671 3,574,734 5,889,442 1,297,315 2031-2035 8,149,726 697,776 3,740,270 318,815 Total 114,683,721$ 31,430,827$ 30,957,894$ 8,135,846$ Current Refunding C. Special Service District Bonds Payable For the Fiscal Year Ending Principal Interest 2016 405,000$ 11,872$ Total 405,000$ 11,872$ In November 2015,the City issued Series 2015A General Obligation Bonds for a total of $13,095,000 with interet rates ranging from 2.0%to 4.0%.The bonds were issued to provide financing for certain public improvement projects for both governmental and business type activities. Also in November 2015,the City issued Series 2015B General Obligation Refunding Bonds for a total of $11,075,000 with interest rates ranging from 4.125%to 4.500%.The bonds were issued to currently refund $11,330,000 of the currently outstanding General Obligation Bonds, series 2006B. The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds. Governmental Activities Special Service District Bond is included within the total of General Obligation Bonds.Annual debt service requirements to maturity for special service district bonds are as follows: On November 10,2015,the City issued $11,075,000 in General Obligation Refunding Bonds,Series 2015B,due in annual installments of $1,000,000 to $1,725,000 plus interest at 2%to 3%through December 1,2022 to advance refund a portion of the General Obligation Bonds,Series 2006B in the amount of $11,330,000.The net proceeds of $11,330,000(after payment of $107,492 in underwriting fees,insurance and other issuance costs)were used to call the 2006B bonds.This transition resulted in a decrease in future debt payment of $1,040,953 and an economic gain of $1,040,458. The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City.These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. - 52 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 8. LONG-TERM DEBT - Continued D.Notes Payable - IEPA Loans Notes payable - IEPA debt service requirements to maturity are as follows: For the Fiscal Year Ending Principal Interest 2016 7,265,496$ 1,253,614$ 2017 6,650,495 1,065,691 2018 6,198,906 894,309 2019 5,241,369 737,489 2020 4,890,608 609,088 2021-2025 15,792,653 1,580,171 2026-2030 4,704,358 302,919 2031-2035 1,157,287 51,125 Total 51,901,172$ 6,494,406$ E.Loan with First Bank and Trust, Evanston F.Postemployment Benefits other than Pensions (Defined Benefit Plan) 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 $507 for single coverage to $1,953 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 $507 for single coverage to $1,953 for family coverage.For the year ended December 31,2015,the City and Library's estimated contribution to the plan is $1,004,111.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. During the last fiscal year,the City set up a loan/line of credit with First Bank and Trust,Evanston in the amount of $5,000,000.The loan term is one year with a maturity date of June 16,2016.As of December 31,2015,the City had drawn $3,548,812 for two projects funded out of TIF funds.The interest rate will be calculated based on 1.00 percentage point over one month "LIBOR" rate index. Business-Type Activities As of December 31,2015,the City currently has 24 outstanding loans from the IEPA.The City will repay the loans solely from revenues derived from the sewer and water system;the loans do not constitute a full faith and credit obligation of the City.They will be repaid with equal installments consisting of principal plus simple interest,on unpaid principal balances,over a period of 20 years.Initial principal balances will consist of disbursements and interest accrued during construction. Repayments begin not later than six months after completion of construction. - 53 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 8. LONG-TERM DEBT - Continued F.Postemployment Benefits other than Pensions (Defined Benefit Plan) - Continued Membership Retirees and beneficias current receiving benefits 109 Terminated employees entitles to benefits but not yet receiving them - Active employees 648 Total 757 City Library Annual required contribution 1,071,479$ 17,169$ Interest on net OPEB obligation 100,159 2,552 Adjustment to annual required contribution (84,997) (2,166) Annual pension cost 1,086,641 17,555 Contributions made (1,002,609) (1,502) Increase (Decrease) in Net Pension Obligation 84,032 16,053 Net OPEB Obligation - Beginning 2,225,756 56,716 Net OPEB Obligation - Ending 2,309,788$ 72,769$ Percentage of Fiscal Period Annual OPEB Annual OPEB Net OPEB Ended Cost Cost Contributed Liability 12/31/2013 1,085,522$ 84.58%2,064,277$ 12/31/2014 1,085,542 85.12%2,225,756 12/31/2015 1,086,641 92.27%2,309,788 The following table shows the components of the City's and the Library's annual OPEB cost for the year ended December 31,2015,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 2015 and the two years prior were as follows. At December 31, 2014 (date of last actuarial valuation), membership consisted of: - 54 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 8. LONG-TERM DEBT - Continued F.Postemployment Benefits other than Pensions (Defined Benefit Plan) - Continued Percentage of Fiscal Period Annual OPEB Annual OPEB Net OPEB Ended Cost Cost Contributed Liability 12/31/2013 16,089$ 9.09%40,654$ 12/31/2014 17,446 7.93%56,716 12/31/2015 17,555 8.56%72,769 City Library Actuarial accrued liability (AAL)15,832,757$ 171,069$ Actuarial value of plan assets - - Unfunded Actuarial Accrued Liability (UAAL)15,832,757$ 171,069$ Funded ratio (actuarial value of plan assets/AAL)-$ -$ Covered payroll (active plan members)53,707,250 1,822,983 UAAL as a percentage of covered payroll 29.48%9.38% The Library's annual OPEB cost,the percentage of annual OPEB cost contributed to the plan,and the net OPEB obligation for 2015 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 31,2015 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 mult-iyear 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 31,2015,the entry-age normal cost method was used.The actuarial assumptions include a 4.50%discount rate and an annual healthcare cost trend rate of 8.50%initially,reduced by decrements to an ultimate rate of 4.50%in the year 2023.Both rates include a 2.5%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, 2015 was 30 years. - 55 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 9.FUND EQUITY A.Restricted Net Position - Fiduciary Funds Fiduciary Funds Firefighters' Pension Fund restriction for employee pension benefits 66,741,084$ Police Pension Fund restriction for employee pension benefits 98,558,837 Total Fiduciary Funds 165,299,921$ B.Assigned Fund Balances The following are the assigned fund balances: General Fund Assigned for Arts Council 24,797$ Assigned for private elm trees 134,483 Assigned for Dutch elm inoculation 249,973 Assigned for parkway trees 52,871 Assigned for Butterfield sculpture 30,883 Assigned for scholarship contributions 24,353 Assigned for Noyes Center 337,086 Assigned for recreation group activities 207,123 Assigned for youth initiative 42,151 Assigned for parks and recreation 477,847 Assigned for Mayor's programs 93,179 Assigned for Chiaravelle escrow 204,600 Assigned for IMRF - Pension 1,773,923 Assigned for compensated absences 1,804,360 Other assignments 214,363 Total General Fund 5,671,992$ Capital Improvement Fund Assigned for capital projects 7,972,906$ Nonmajor Governmental Funds Assigned for special assessment capital project 2,682,781$ Total Assigned Fund Balances 16,327,679$ - 56 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 contract is renewable at ten-year intervals thereafter.Under the terms of the contract,the City is to supply the Village of Skokie sufficient potable Lake Michigan water to satisfy the maximum 24-hour demand for Lake Michigan water of the Village of Skokie system. The City also provides potable Lake Michigan water to the Northwest Water Commission (NWWC)under a long-term water supply contract.Sale of potable water under this contract began on February 28,1985 and continues until February 28,2030.Under the terms of the current contract,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 2015 was $320,790 which includes an estimated allowance amount of $6,416. - 57 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 11.RISK MANAGEMENT - CLAIMS AND JUDGEMENTS The changes in the balances of claims liabilities during the past two fiscal periods are as follows: Workers’General Compensation Liability Total December 31, 2013 2,104,785$ 2,686,675$ 4,791,460$ New claims and/or estimate revisions 565,982 363,368 929,350 Claims payments (494,767) (283,078) (777,845) December 31, 2014 2,176,000 2,766,965 4,942,965 New claims and/or estimate revisions 339,385 (390,867) (51,482) Claims payments (588,265) (75,850) (664,115) December 31, 2015 1,927,120$ 2,300,248$ 4,227,368$ 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 the City's 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 $10,000,000. Workers' compensation and general liability risks are accounted for in the Insurance Fund. The fund was established on March 1,1994 to administer general liability claims and workers'compensation programs on a cost-reimbursement basis.The fund accounts for the aforementioned liabilities of the City, but does not constitute a transfer of risk from the City. The City records estimated liabilities for workers'compensation and for general claims.Claims liabilities are based on estimates of the ultimate cost of reported claims including future claim adjustment expenses. - 58 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 12.CONTINGENCIES NOTE 13.JOINT VENTURES A.Solid Waste Agency of Northern Cook County Summary of Financial Position as of April 30, 2015: Current assets 3,745,840$ Property, plant, and equipment 9,694,317 Total assets 13,440,157 Current liabilities 3,684,511 Total liabilities 3,684,511 Deferred inflows Deferred rent 171,429 Net investment in capital assets 8,494,317 Restricted net position 2,592,283 Unrestricted net position (1,502,383) Net Position 9,584,217$ 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. 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. On March 28,1988,the City Council authorized agreements providing for the City's participation in the Solid Waste Agency of Northern Cook County (the 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,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 bylaws. The authority to designate management,influence operations,and formulate budgets rests with the Board of Directors and Executive Committee.No one member has the ability to significantly influence operations;therefore,the Agency is not a component unit of any other governmental reporting entity. - 59 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 13.JOINT VENTURES - Continued A.Solid Waste Agency of Northern Cook County - Continued Summary of Revenues and Expenses for the Year Ended April 30, 2015: Total revenues 14,294,118$ Total expenses (14,279,224) Net Income 14,894$ Complete financial statements for the Agency can be obtained at 2700 Patriot Blvd., Glenview, IL 60026. B.Evanston Housing Corporation Statement of Financial Position as of December 31, 2014: Cash and cash equivalents 2,133,506$ Mortgage loans receivable 193,746 Total assets 2,327,252 Payables and accrued expenses 388,761 Notes payable 3,064,000 Total liabilities 3,452,761 Net Position (1,125,509)$ (Note: December 31, 2014 is the most current information available.) Statement of Activities for the Year Ended December 31, 2014: Total revenues 101,263$ Total operating expenses (101,263) Excess of Revenues over Expenses -$ (Note: December 31, 2014 is the most current information available.) The City agreed to jointly participate with various lending institutions in a not-for-profit housing mortgage corporation by approval of the City Council on May 22,1989.The purpose of the Evanston Housing Corporation (the Corporation)is to lend mortgage funds to qualified, income eligible, first-time homebuyers in the City. The Corporation is governed by a Board of Directors of ten people,four of whom are selected by the City.The Board of Directors has the authority to approve the annual budget and to arrange for the management of the affairs of the Corporation. The City has no governing authority to influence actions of the Corporation.The City is not liable for payment of any debts of the Corporation. The City of Evanston has advanced $639,000 to the corporation under the notes due on or before November 30,2034.The notes bear no interest.However,the City is entitled to a certain net sales consideration upon the sale or exchange of the mortgaged property, as well as a prorated portion of the investment income earned on the funds not loaned to mortgagees. The financial institutions'funds are advanced under Non-Recourse Collateral Trust Notes.The notes are payable on or before November 30,2029.Interest accrues based on interest earned from the mortgage notes receivable and investments,less expenses.Interest is paid semiannually to the holders on a pro-rata basis based on the amount of each note held to the total outstanding notes. The audited financial statements of the Corporation for the year ended December 31, 2014 are summarized as follows: The City provides the Corporation with office space and staff support on a cost reimbursement basis.Complete financial statements for the Corporation can be obtained in the City's Community Development Department from the Assistant Director, Housing Rehabilitation and Property Standards. - 60 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS A.Plan Descriptions Illinois Municipal Retirement Fund Plan Administration Plan Membership Inactive employees or their beneficiaries currently receiving benefits 651 Inactive employees entitled to but not yet receiving benefits 389 Active employees 512 Total 1,552 Benefits Provided 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. At December 31, 2015, 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. - 61 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A.Plan Descriptions - Continued Illinois Municipal Retirement Fund - Continued Contributions Actuarial Assumptions Actuarial valuation date December 31, 2015 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 31,2015 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 2014).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 2014).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 2014).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, 2015 was 10.66% of covered payroll. Changes in assumptions related to retirement age and mortality were made since the prior measurement date. - 62 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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, 2015 220,476,485$ 215,541,904$ 4,934,581$ Changes for the period Service cost 3,910,996 - 3,910,996 Interest 16,235,086 - 16,235,086 Difference between expected and actual experience 1,465,442 - 1,465,442 Changes in assumptions 266,906 - 266,906 Employer contributions - 4,018,268 (4,018,268) Employee contributions - 1,767,523 (1,767,523) Net investment income - 1,062,353 (1,062,353) Benefit payments and refunds (11,928,345) (11,928,345) - Administrative expense - - - Other (net transfer)- 737,427 (737,427) Net Changes 9,950,085 (4,342,774) 14,292,859 Balances at December 31, 2015 230,426,570$ 211,199,130$ 19,227,440$ The discount rate used to measure the total pension liability was 7.49%.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 not to be available to make all projected future benefit payments of current plan members.Therefore, the long-term expected rate of return on pension plan investments of 7.50%was blended with the index rate of 3.57%for tax exempt general obligation municipal bonds rated AA or better at December 31,2015 to arrive at a discount rate of 7.49% used to determine the total pension liability. 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 1,2015,the employer contributions,and the net pension liability at December 31,2015 was $4,537,790,$3,688,783,and $17,681,357,respectively.The Library’s proportionate share of the net pension liability at January 1,2015,the employer contributions and the net pension liability at December 31, 2015 was $396,791, $329,485, and $1,546,083, respectively. - 63 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A.Plan Descriptions - Continued Illinois Municipal Retirement Fund - Continued Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Deferred Deferred Outflows of Inflows of Resources Resources Difference between expected and actual experience 2,416,886$ -$ Changes in assumption 3,735,389 - Net difference between projected and actual earnings on pension plan investments 13,683,734 - Total 19,836,009$ -$ Year Ending December 31, 2016 7,085,134$ 2017 5,921,087 2018 3,849,669 2019 2,980,119 Thereafter - Total 19,836,009$ For the year ended December 31,2015,the City recognized pension expense of $5,543,149.At December 31, 2015,the City reported deferred outlfows 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 31,2015 was $18,240,990.The Library’s proportionate share of the deferred outflows of resources at December 31,2015 was $1,595,019 Amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized in pension expense as follows: - 64 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A.Plan Descriptions - Continued Illinois Municipal Retirement Fund - Continued Disount Rate Sensitivity Current 1% Decrease Discount Rate 1% Increase (6.49%)(7.49%)(8.49%) City 44,213,500$ 17,681,357$ (4,178,950)$ Library 3,865,556$ 1,546,083 (365,363) Total 48,079,056$ 19,227,440$ (4,544,313)$ 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 7.49%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 (6.49%) or 1 percentage point higher (8.49%) than the current rate: - 65 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans Plan Administration Plan Membership At January 1, 2015, plan membership consisted of: Firefighters' Police Pension Pension Inactive plan members or beneficiaries currently receiving benefits 180 142 Inactive plan members entitled to but not yet receiving benefits 6 3 Active plan members 163 107 Total 349 252 Benefits Provided Police Pension Plan 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. 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. - 66 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS – Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Benefits Provided - Continued Police Pension Plan - Continued Firefighters' Pension Plan Contributions Participants contribute a fixed percentage of their base salary to the Firefighters'Pension Plan.At December 31,2015,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, 2015 the City’s contribution was 67.07% of covered payroll. 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. 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 31,2015 the City's contribution was 64.61%of covered payroll. - 67 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Investment Policy Police Pension Fund Police Pension Asset Class Domestic Equity Large Cap 5.35% Domestic Small Cap 6.56% International Developed Foreign 5.85% Fixed Income Investment Grade Corporate 2.50% Fixed Income Intermediate U.S. Treasuries 2.04% REITS 5.92% Cash -0.25% Total 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: 52.0% 5.0% 5.0% 8.0% 25.0% 3.0% 2.0% 100% 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 31,2015 are listed in the table above. Target Allocation - 68 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 15.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Firefighters' Pension Fund Firefighters' Pension Asset Class Target Allocation Cash 1.0%0.50% U.S. Fixed Income 40.30%2.10% High Yield 1.50%5.90% U.S. Large Cap Growth Equity 14.00%7.50% U.S. Large Cap Value Equity 12.20%7.10% U.S. Mid Cap Growth Equity 3.40%8.60% U.S. Mid Cap Value Equity 3.40%7.90% U.S. Small Cap Growth Equity 2.70%9.50% U.S. Small Cap Value Equity 2.70%8.60% Europe Equity 5.30%7.60% Japan Equity 0.70%7.10% Emerging Market Equity 0.60%9.40% Real Estate 2.10%6.80% Infrastructure 3.30%5.90% Hedged Strategies 6.80%3.50% Total 100% Investment Valuations Investment Rate of Return For the year ended December 31,2015,the Police Pension Plan annual money-weighted rate of return on pension plan investment, net of pension plan investment expense,was 9.54%.The money-weighted rate of return expresses investment performance,net of investment expense, adjusted for the changing amounts actually invested. For the year ended December 31,2015,the Firefighters'Pension Plan annual money weighted rate of return on pension plan investment,net of pension plan investment expense,was 5.47%.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. 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 31,2015 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: - 69 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Deposits with Financial Institutions Interest Rate Risk Investment Maturities (In Years) Fair Value Less Than 1 Year 1 - 10 More Years Corporate bonds 22,695,257$ 944,417$ 21,750,840$ U.S. Treasuries 19,217,626 2,926,738 16,290,888 Federal Home Loan Bank 593,979 - 593,979 Federal Home Loan Mortgage Corp 7,739,602 - 7,739,602 Fannie Mae 9,486,365 104,532 9,381,833 Ginnie Mae 237,495 412 237,083 Total Police and Firefighters' Investment $ 59,970,324 $ 3,976,099 $ 55,994,225 Credit Risk Custodial Credit Risk - Investments The following table presents the investments and maturities of the Funds' debt securities as of December 31, 2015: 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. 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.The Funds'investment policies are silent on minimum ratings required. 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. 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 Fund’s deposits with financial institutions. Police and Firefighters' Pension Investment Type - 70 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Custodial Credit Risk - Investments - Continued Actuarial Assumptions Actuarial valuation date Actuarial cost method Asset valuation method Actuarial assumptions: Inflation Interest rate Cost-of-living adjustments 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 total pension liability above was determined by an actuarial valuation performed using the following actuarial methods and assumptions. 6.75% 3.00% 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. Market Value Projected salary increases graded by age Firefighters' Pension December 31, 2014 Entry‑age normal Market Value From 7.69% to 3.62%From 7.69% to 3.62% 2.50% Police Pension December 31, 2014 Entry‑age normal 2.50% 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 only exception to the aforementioned are investments in FNMA (8%). 6.75% 3.00% - 71 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Discount Rate Current Discount 1% Decrease Rate 1% Increase Police Pension Fund: Discount rate 5.75%6.75%7.75% Net pension liability $ 113,444,590 $ 89,636,697 $ 69,837,068 Firefighters’ Pension Fund: Discount rate 5.75%6.75%7.75% Net pension liability $ 94,105,898 $ 76,415,380 $ 61,640,923 Total Net Pension Liability $ 207,550,488 $ 166,052,077 $ 131,477,991 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, 2014 183,492,025$ 90,763,143$ 92,728,882$ Changes for the period Service cost 3,439,223 - 3,439,223 Interest 12,284,036 - 12,284,036 Difference between expected and actual experience - - - Changes in assumptions - - - Employer contributions - 8,644,196 (8,644,196) Employee contributions - 1,565,053 (1,565,053) Net investment income - 8,675,133 (8,675,133) Benefit payments and refunds (9,891,045) (9,891,045) - Administrative expense - - - Other (net transfer)- (68,938) 68,938 Net Changes 5,832,214 8,924,399 (3,092,185) Balances at December 31, 2014 189,324,239$ 99,687,542$ 89,636,697$ The following is a sensitivity analysis of the net pension liability to changes in the discount rate.The table below presents the pension liability calculated using the discount rates of 6.75%and 6.75%for the Police Pension Plan and the Firefighters’Pension Plan,respectively,as well as what the net pension liability would be if it were to be calculated using discount rates that is 1 percentage point lower or 1 percentage point higher than the current rates: - 72 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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, 2014 140,667,430$ 65,024,941$ 75,642,489$ Changes for the period Service cost 2,326,092 - 2,326,092 Interest 9,391,253 - 9,391,253 Difference between expected and actual experience - - - Changes in assumptions - - - Employer contributions - 6,527,697 (6,527,697) Employee contributions - 919,874 (919,874) Net investment income - 3,549,131 (3,549,131) Benefit payments and refunds (7,727,683) (7,727,683) - Administrative expense - - - Other (net transfer)- (52,248) 52,248 Net Changes 3,989,662 3,216,771 772,891 BALANCES AT DECEMBER 31, 2014 144,657,092$ 68,241,712$ 76,415,380$ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Police Pension Fund Deferred Deferred Outflows of Inflows of Resources Resources Contributions subsequent to the measurement date 8,804,263$ -$ Difference between expected and actual experience - - Changes in assumption - - Net difference between projected and actual earnings on pension plan investments - 2,032,166 Total 8,804,263$ 2,032,166$ For the year ended December 31,2015,the City recognized police pension expense of $7,584,177.At December 31,2015,the City reported deferred outlfows of resources and deferred inflows of resources related to the Fund from the following sources: - 73 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued A. Plan Descriptions - Continued Police and Firefighters' Pension Plans - Continued Year Ending December 31, 2016 8,296,221$ 2017 (508,042) 2018 (508,041) 2019 (508,041) Thereafter - Total 6,772,097$ Firefighters' Pension Fund Deferred Deferred Outflows of Inflows of Resources Resources Contributions subsequent to the measurement date 6,385,244$ -$ Difference between expected and actual experience - - Changes in assumption - - Net difference between projected and actual earnings on pension plan investments 663,068 - Total 7,048,312$ -$ Year Ending December 31, 2016 6,551,011$ 2017 165,767 2018 165,767 2019 165,767 Thereafter - Total 7,048,312$ 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 31,2015,the City recognized firefighter's pension expense of $6,637,520.At December 31,2015,the City reported deferred outlfows of resources and deferred inflows of resources related to the Fund from the following sources: Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Police Pension Plan will be recognized in pension expense as follows: - 74 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 15.PENSION TRUST FUNDS Fiduciary Funds Summary Financial Information The following is summary financial information for the Police Pension Plan and the Firefighters' Pension Plan: A. Schedule of Net Position Firefighters'Police Pension Pension Total Assets Cash and cash equivalents 1,183,465$ 2,193,722$ 3,377,187$ Investments at fair value U.S. Treasury obligations 2,442,937 16,774,689 19,217,626 U.S. agency obligations 2,405,787 15,651,655 18,057,442 Corporate bonds 13,410,621 9,284,635 22,695,256 Common stock 5,646,660 18,334,861 23,981,521 Equity mutual funds 41,491,173 35,951,130 77,442,303 Receivables Accrued interest 142,583 358,580 501,163 Due from other governments 31,737 15,565 47,302 Other 2,592 - 2,592 Total Assets 66,757,555 98,564,837 165,322,392 Liabilities Accounts payable 16,471 6,000 22,471 Total Liabilities 16,471 6,000 22,471 Net Position Held in Trust For Pension Benefits 66,741,084$ 98,558,837$ 165,299,921$ - 75 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 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 6,385,243$ 8,804,264$ 15,189,507$ Plan members 956,092 1,454,720 2,410,812 Miscellaneous income - 47 47 Total Contributions 7,341,335 10,259,031 17,600,366 Investment income Net (depreciation) in fair value of investments (788,335) (2,199,756) (2,988,091) Interest on investments 1,206,228 2,902,399 4,108,627 Less investment expenses (134,798) (240,956) (375,754) Total Investment Income 283,095 461,687 744,782 Total Additions 7,624,430 10,720,718 18,345,148 Deductions Administrative 99,456 102,386 201,842 Benefits payments 8,026,250 10,403,247 18,429,497 Refunds of contributions 41,716 21,708 63,424 Total Deductions 8,167,422 10,527,341 18,694,763 Net Increase (Decrease) (542,992) 193,377 (349,615) Net Position Held in Trust For Pension Benefits Januay 1 68,241,712 99,687,542 167,929,254 Prior Period Adjustment (957,636) (1,322,082) (2,279,718) January 1, Restated 67,284,076 98,365,460 165,649,536 December 66,741,084$ 98,558,837$ 165,299,921$ - 76 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year ended December 31, 2015 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. 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,respectively,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 triple A 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. - 77 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 16.EVANSTON LIBRARY COMPONENT UNIT - Continued B.Reconciliation of Cash and Investments Cash and equivalents 1,322,357$ Investments 3,744,525 Total per Statement of Position $ 5,066,882 Cash in bank 1,322,357$ Vanguard Money Market 531,988 Vanguard Equity Mutual Funds 3,212,537 Total Cash and Investments $ 5,066,882 C.Summary of Receivables Receivables: Property taxes 6,439,721$ 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 18,551,582 248,586 - 18,800,168 Office equipment and furniture 2,285,009 - - 2,285,009 Infrastructure 230,006 - - 230,006 Library collections 9,026,558 34,801 - 9,061,359 Capitalized leases 266,191 - - 266,191 Total Capital Assets being Depreciated/Amortized 30,359,346 283,387 - 30,642,733 Less accumulated depreciation/amortization for: Buildings and improvements 7,370,782 344,563 - 7,715,345 Office equipment and furniture 2,285,009 - - 2,285,009 Infrastructure 81,781 14,180 - 95,961 Library collections 7,362,026 406,966 - 7,768,992 Capitalized leases 266,191 - - 266,191 Total Accumulated Depreciation/Amortization 17,365,789 765,709 - 18,131,498 Total Capital Assets being Depreciated/Amortized, Net 12,993,557 (482,322) - 12,511,235 Library Activities Capital Assets, Net 13,304,937$ (482,322)$ -$ 12,822,615$ - 78 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 16.EVANSTON LIBRARY COMPONENT UNIT - Continued E Long-Term Debt Final Balance Interest Maturity 12/31/2014 Balance Due Within Rate Date (Restated)Issued Payments Refunded 12/31/2015 One Year General Obligations Debt Series 2007 4.00%-5.00%12/1/2016 1,156,610$ -$ 146,289$ -$ 1,010,321$ 126,945$ Series 2008D 3.25%-5.00%12/1/2016 188,160 - 148,680 - 39,480 39,480 Series 2013B 2.00%-3.00%12/1/2025 780,547 - 186,967 - 593,580 156,816 2,125,317 - 481,936 - 1,643,381 323,241 OPEB liability 56,716 16,053 - - 72,769 - Compensated absences payable - City 469,537 - 120,731 - 348,806 69,761 IMRF - net pension liability 396,791 1,149,292 - - 1,546,083 - Total Long-Term Debt 3,048,361$ 1,165,345$ 602,667$ -$ 3,611,039$ 393,002$ Year Ending December 31 Principal Interest 2016 323,241$ 62,454$ 2017 274,011 51,944 2018 166,831 42,907 2019 106,755 36,575 2020 90,778 32,567 2021-2025 508,878 107,278 2026-2027 172,887 13,077 Total 1,643,381$ 346,802$ The following schedule illustrates the annual debt service requirements to maturity for the Library General Obligation Bonds. - 79 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 16.EVANSTON LIBRARY COMPONENT UNIT - Continued F.Prior Period Adjustment Governmental Library Operating Library Activities Fund Debt Service Fund Fund Balances (Deficit)/Net Position, January 1 (as Previously reported): 15,764,718$ 1,378,970$ 93,595$ Restatements: (889,328) (793,324) (96,004) Change in Accounting Principle (114,845) - - Fund Balances (Deficit)/Net Position, January 1, Restated 14,760,545$ 585,646$ (2,409)$ The Library has restated fund balances/net position as of January 1, 2015 as follows: With the implementation of GASB Statement No.68, the Library is required to retroactively record the net pension liability.The Library recorded the following changes in accounting principle during the year ended December 31, 2015: The Library changed its property tax revenue recognition policy to agree with the tax levy year to the budget year rather than 60 days - 80 - CITY OF EVANSTON, ILLINOIS Notes to the Financial Statements For the Fiscal Year Ended December 31, 2015 NOTE 17.Prior Period Adjustment Nonmajor Internal Pension Governmental Business-Type General Debt Service Governemental Enterprise Service Trust Activities Activities Fund Fund Funds Funds Funds Funds Fund Balances (Deficit)/Net Position, January 1 (as Previously Reported)60,643,042$ 270,593,691$ 14,982,966$ 3,796,787$ 37,489,946$ 270,593,691$ 6,066,845$ 167,929,254$ The City recorded the following restatements: (2,927,400) 229,315 (1,762,959) (1,753,037) (1,098,318) 229,315 - (2,279,718) 1,440,141 - - - - - 1,440,141 - - - - - (8,586,612) - - - Change in Accounting Principle (150,521,454) (145,013) - - - (145,013) - - Change in Accounting Principle 15,171,893 - - - - - - - Fund Balances (Deficit)/Net Position January 1, Restated $ (76,193,778) $ 270,677,993 $ 13,220,007 $ 2,043,750 $ 27,805,016 $ 270,677,993 $ 7,506,986 $ 165,649,536 NOTE 18.Subsequent Event Major Governmental Funds With the implementation of GASB Statement No. 68, the City is required to retroactively record the net pension liability and write off the net pension obligation. The City recorded the following changes in accounting principle during the year ended December 31, 2015: The City has restated fund balances/net position as of January 1, 2015 as follows: The City changed its property tax revenue recognition to agree to the tax levy year to budget year rather than 60 days after year end. On June 13, 2016, the City has approved the issuance of $14,000,000 2016A General Obligation Bons and $8,155,000 2016B General Obligation Refunding Bonds. To record IPBC terminal reserve With the implementation of GASB Statement No. 71, the City is required to retroactively record a deferred outflow of resources for contributions subsequent to the measurement date for the Police and Fire Pension Funds. The City recorded the following changes in accounting principle during the year ended December 31, 2015: The City changed its long-term loan recognition to match the loan to a deferred outflow of resources, as they are not spendable. - 81 - REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress (6) (2)UAAL Actuarial (4)as a Actuarial (1)Accrued (3)Unfunded Percentage Valuation Actuarial Liability Funded AAL (5)of Covered Date Value of (AAL)Ratio (UAAL)Covered Payroll December 31,Assets Entry-Age (1) / (2) (2) - (1)Payroll (4) / (5) 2010 -$ 12,259,348$ 0.00%12,259,348$ 51,896,579$ 23.62% 2011*- 16,994,544 0.00%16,994,544 48,101,372 35.33% 2012 - 17,294,689 0.00%17,294,689 49,784,920 34.74% 2013 - 16,018,745 0.00%16,018,745 47,024,745 34.06% 2014 - 15,789,873 0.00%15,789,873 53,652,399 29.43% 2015 - 16,003,826 0.00%16,003,826 55,530,233 28.82% * The City changed to a December 31 year end for the fiscal year ended December 31, 2011. Schedule of Employer Contributions Annual Required Fiscal Employer Contribution Percentage Year Contributions (ARC)Contributed 2010 650,196$ 1,041,981$ 62.40% 2011*804,013 939,268 85.60% 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% * The City changed to a December 31 year end for the fiscal year ended December 31, 2011. December 31, 2015 CITY OF EVANSTON, ILLINOIS Required Supplementary Information Other Postemployment Benefits (See independent auditor's report.) - 82 - 2015* Actuarially determined contribution 3,977,718$ Contributions in relation to the actuarially determined contribution 4,018,268 CONTRIBUTION DEFICIENCY (Excess)(40,550)$ Percentage contributed 101.0% Covered-employee payroll 37,703,487$ Contributions as a percentage of covered-employee payroll 10.7% * Schedule to be built prospectively from 2015. Notes to Required Supplementary Information CITY OF EVANSTON, ILLINOIS Schedule of Employer Contributions Illinois Municipal Retirement Fund December 31, 2015 The information directly above is formatted to comply with the requirements of GASB Statement No. 68. (See independent auditor's report.) - 83 - 2015* Actuarially determined contribution 8,257,475$ Contributions in relation to the actuarially determined contribution 8,746,427 CONTRIBUTION DEFICIENCY (Excess)(488,952)$ Percentage contributed 105.9% Covered-employee payroll 13,537,726$ Contributions as a percentage of covered-employee payroll 64.6% * Schedule to be built prospectively from 2014. Notes to Required Supplementary Information Actuarial valuation date December 31, 2014 Actuarial cost method Entry-age normal Amortization method Level percentage of pay, closed Amortization period 18 years Asset valuation method Market Investment rate of return, net of investment expenses 7.00% annually Projected salary increases 5.25% annually Postretirement benefit increases Tier 1 3.00% compounded annually Tier 2 2.00% per year not compounded CITY OF EVANSTON, ILLINOIS Schedule of Employer Contributions Police Pension Fund December 31, 2015 (See independent auditor's report.) - 84 - 2015* Actuarially determined contribution 5,903,483$ Contributions in relation to the actuarially determined contribution 6,385,244 CONTRIBUTION DEFICIENCY (Excess)(481,761)$ Percentage contributed 108.2% Covered-employee payroll 9,520,925$ Contributions as a percentage of covered-employee payroll 67.1% * Schedule to be built prospectively from 2014. Notes to Required Supplementary Information Actuarial valuation date December 31, 2014 Actuarial cost method Entry-age normal Amortization method Level percentage of pay, closed Amortization period 18 years Asset valuation method Market Investment rate of return, net of investment expenses 7.00% annually Projected salary increases 5.25% annually Postretirement benefit increases Tier 1 3.00% compounded annually Tier 2 2.00% per year not compounded CITY OF EVANSTON, ILLINOIS Schedule of Employer Contributions Firefighters' Pension Fund December 31, 2015 (See independent auditor's report.) - 85 - 2015 Total Pension Liability Service cost 3,910,996$ Interest 16,235,086 Changes of benefit terms - Differences between expected and actual experience 1,465,442 Changes of assumptions 266,906 Benefit payments, including refunds of member contributions (11,928,345) Net Change in Total Pension Liability 9,950,085 Total pension liability - Beginning 220,476,485 Total Pension Liability - Ending 230,426,570$ Plan Fiduciary Net Position Contributions - employer 4,018,268$ Contributions - member 1,767,523 Net investment income 1,062,353 Benefit payments, including refunds of member contributions (11,928,345) Administrative expense 737,427 Net Change in Plan Fiduciary Net Position (4,342,774) Plan Fiduciary Net Position - Beginning 215,541,904 Plan Fiduciary Net Position - Ending 211,199,130$ Employer's Net Pension Liability 19,227,440$ Plan fiduciary net position as a percentage of the total pension liability 91.66% Covered-employee payroll 37,703,487$ Employer's net pension liability as a percentage of covered-employee payroll 51.00% CITY OF EVANSTON, ILLINOIS Schedule of Changes in the Employer's Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund December 31, 2015 (See independent auditor's report.) - 86 - 2015 Total Pension Liability Service cost 3,439,223$ Interest 12,284,036 Changes of benefit terms - Differences between expected and actual experience - Changes of assumptions - Benefit payments, including refunds of member contributions (9,891,045) Net Change in Total Pension Liability 5,832,214 Total pension liability - Beginning 183,492,025 Total Pension Liability - Ending 189,324,239$ Plan Fiduciary Net Position Contributions - employer 8,644,196$ Contributions - member 1,565,053 Net investment income 8,675,133 Benefit payments, including refunds of member contributions (9,891,045) Administrative expense (68,938) Net Change in Plan Fiduciary Net Position 8,924,399 Plan Fiduciary Net Position - Beginning 90,763,143 Plan Fiduciary Net Position - Ending 99,687,542$ Employer's Net Pension Liability 89,636,697$ Plan fiduciary net position as a percentage of the total pension liability 52.65% Covered-employee payroll 13,537,726$ Employer's net pension liability as a percentage of covered-employee payroll 662.13% CITY OF EVANSTON, ILLINOIS Police Pension Fund December 31, 2015 Schedule of Changes in the Employer's Net Pension Liability and Related Ratios (See independent auditor's report.) - 87 - 2015 Total Pension Liability Service cost 2,326,092$ Interest 9,391,253 Changes of benefit terms - Differences between expected and actual experience - Changes of assumptions - Benefit payments, including refunds of member contributions (7,727,683) Net Change in Total Pension Liability 3,989,662 Total pension liability - Beginning 140,667,430 Total Pension Liability - Ending 144,657,092$ Plan Fiduciary Net Position Contributions - employer 6,527,697 Contributions - member 919,874 Net investment income 3,549,131 Benefit payments, including refunds of member contributions (7,727,683) Administrative expense (52,248) Net Change in Plan Fiduciary Net Position 3,216,771 Plan Fiduciary Net Position - Beginning 65,024,941 Plan Fiduciary Net Position - Ending 68,241,712$ Employer's Net Pension Liability 76,415,380$ Plan fiduciary net position as a percentage of the total pension liability 47.17% Covered-employee payroll 9,520,925$ Employer's net pension liability as a percentage of covered-employee payroll 802.60% CITY OF EVANSTON, ILLINOIS Schedule of Changes in the Employer's Net Pension Liability and Related Ratios Firefighters' Pension Fund December 31, 2015 (See independent auditor's report.) - 88 - 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, 2015 Original Final Budget Budget Actual Variance Revenues Taxes 38,364,300$ 37,601,418$ 52,628,569$ 14,264,269$ Licenses and permits 13,461,859 13,461,859 12,184,303 (1,277,556) Intergovernmental 18,515,427 18,515,427 18,998,689 483,262 Charges for services 7,988,251 7,988,251 8,224,155 235,904 Fines 4,463,774 4,463,774 3,554,188 (909,586) Investment income 50,000 50,000 6,573 (43,427) Miscellaneous 1,278,343 1,278,343 950,964 (327,379) Total Revenues 84,121,954 83,359,072 96,547,441 12,425,487 Expenditures General management and support 12,500,681 12,500,681 11,753,081 (747,600) Public safety 42,129,266 42,129,266 58,461,316 16,332,050 Public works 16,767,153 16,767,153 16,866,953 99,800 Health and human services development 4,287,811 4,287,811 3,140,999 (1,146,812) Recreation and cultural opportunities 10,735,900 10,735,900 11,079,855 343,955 Housing and economic development 2,374,528 2,374,528 2,359,753 (14,775) Total Expenditures 88,795,339 88,795,339 103,661,957 14,866,618 Excess (Deficiency) of Revenues Over Expenditures (4,673,385) (5,436,267) (7,114,516) (2,441,131) Other Financing Sources (Uses) Sale of assets 70,000 70,000 - (70,000) Transfers in 8,823,695 8,826,403 7,769,334 (1,054,361) Transfers (out)(3,325,128) (3,325,128) (3,169,989) 155,139 Total Other Financing Sources (Uses)5,568,567 5,571,275 4,599,345 (969,222) Net Change in Fund Balance 895,182$ 135,008$ (2,515,171) (3,410,353)$ Fund Balances Beginning of Year 14,982,966 Prior period adjustments (1,762,959) Beginning of Year, (Restated)13,220,007 End of Year 10,704,836$ (See independent auditor's report.) - 89 - 2015 Annual money-weighted rate of return,9.54% net of investment expense CITY OF EVANSTON, ILLINOIS Police Pension Fund Schedule of Investment Returns December 31, 2015 (See independent auditor's report.) - 90 - 2015 Annual money-weighted rate of return,5.47% net of investment expense CITY OF EVANSTON, ILLINOIS Firefighters' Pension Fund Schedule of Investment Returns December 31, 2015 (See independent auditor's report.) - 91 - 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, 2015 Variance with Final Budget Original Final Over Budget Budget Actual (Under) Revenues Taxes Property Current year levy 12,150,000$ 11,387,118$ 25,563,551$ 13,413,551$ Prior year levy 250,000 250,000 352,419 102,419 Total Property Taxes 12,400,000 11,637,118 25,915,970 13,515,970 Personal Property Replacement Tax 646,300 646,300 1,312,384 666,084 Other Taxes State use tax 1,260,000 1,260,000 1,656,710 396,710 Sales tax - home rule 6,180,000 6,180,000 6,102,128 (77,872) Auto rental tax 43,000 43,000 48,733 5,733 Athletic contest tax 900,000 900,000 858,155 (41,845) Utility tax 8,170,000 8,170,000 7,081,575 (1,088,425) Cigarette tax 300,000 300,000 225,000 (75,000) Evanston motor fuel tax 640,000 640,000 795,586 155,586 Liquor tax 2,450,000 2,450,000 2,531,974 81,974 Parking tax 2,500,000 2,500,000 2,614,820 114,820 Real estate transfer tax 2,875,000 2,875,000 3,485,534 610,534 Total Other Taxes 25,318,000 25,318,000 25,400,215 82,215 Total Taxes 38,364,300 37,601,418 52,628,569 14,264,269 Licenses and Permits Vehicle licenses 2,850,000 2,850,000 2,634,172 (215,828) Business licenses 50,000 50,000 104,221 54,221 Bed and breakfast licenses 75 75 - (75) Collection box license 2,500 2,500 3,026 526 Pet licenses 18,000 18,000 22,318 4,318 Contractor licenses 77,302 77,302 106,818 29,516 Rooming house licenses 200,000 200,000 244,468 44,468 Liquor licenses 400,000 400,000 564,687 164,687 One-day liquor licenses 7,000 7,000 13,023 6,023 Farmer's market licenses 41,500 41,500 41,700 200 Rental building register 75,000 75,000 78,668 3,668 Other licenses 20,000 20,000 222 (19,778) Long-term care license 98,400 98,400 130,539 32,139 Seasonal foot ESTB 7,500 7,500 14,592 7,092 Mobile food vehicle license 1,000 1,000 - (1,000) Hen coop license 800 800 829 29 Resident care home license 600 600 760 160 Building permits 6,700,000 6,700,000 4,682,618 (2,017,382) Plumbing permits 135,000 135,000 177,854 42,854 Electrical permits 140,000 140,000 229,371 89,371 Signs and awnings 8,330 8,330 10,461 2,131 Other/miscellaneous permits 250,920 250,920 415,484 164,564 Elevator permits 32,000 32,000 40,137 8,137 Heating vent/AC permits 287,532 287,532 426,403 138,871 Right of way permits 350,000 350,000 462,469 112,469 (This schedule is continued on the following pages.) - 92 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year ended December 31, 2015 Variance with Final Budget Original Final Over Budget Budget Actual (Under) Revenues - Continued Licenses and Permits - Continued Property cleaning permit -$ -$ 4,285$ 4,285$ Residents parking permit 128,000 128,000 114,296 (13,704) Visitor parking permit 12,300 12,300 15,319 3,019 Fire suppression/alarm permit 90,000 90,000 130,435 40,435 Annual sign fees 25,000 25,000 25,366 366 Moving van permit 50,000 50,000 (200) (50,200) Plat PR. and Sign approval HRG fees 2,100 2,100 2,130 30 Alarm panel franchise fee 6,000 6,000 4,410 (1,590) Northwester/Centel easement - - 47,000 47,000 Cable franchise fee 1,200,000 1,200,000 1,267,128 67,128 PEG Fees - Comcast 130,000 130,000 109,507 (20,493) Nicor franchise fee 65,000 65,000 59,787 (5,213) Total Licenses and Permits 13,461,859 13,461,859 12,184,303 (1,277,556) Intergovernmental - Revenue from Other Agencies Retailer and service occupation tax 10,225,000 10,225,000 9,999,482 (225,518) State income tax 7,500,000 7,500,000 8,266,906 766,906 State highway maintenance 68,000 68,000 61,757 (6,243) Health Department Basic Service Grant 76,000 76,000 - (76,000) Summer food inspections 400 400 300 (100) Illinois tobacco free community 31,027 31,027 24,621 (6,406) IL HIV Surveillance Grant 4,000 4,000 6,482 2,482 Childhood Lead Poisoning Grant 1,000 1,000 1,870 870 Other State/County Grant 11,000 11,000 146,725 135,725 Tanning parlor inspection 300 300 - (300) Fire Department training 6,000 6,000 8,197 2,197 CRI Grant 44,000 44,000 40,647 (3,353) PEHP Grant 62,000 62,000 60,684 (1,316) Leadbase Paint Control Grant 100,000 100,000 20,260 (79,740) Federal Grant/Aid 8,000 8,000 59,938 51,938 Commission on Aging Grant - Advocate 87,150 87,150 110,066 22,916 IL Vacant Property Grant 71,000 71,000 - (71,000) Civil Devence Grants (F.E.M.A.)17,000 17,000 - (17,000) Police training 8,000 8,000 - (8,000) HUD Emergency Shelter Grant 135,550 135,550 171,363 35,813 Youth Organization Umbrella Grant 40,000 40,000 19,391 (20,609) RTA Grant 20,000 20,000 - (20,000) Total Intergovernmental - Revenue from Other Agencies 18,515,427 18,515,427 18,998,689 483,262 Charges for Services Recreation Recreation - program 5,367,751 5,367,751 5,414,190 46,439 Recreation - charges - - 20,696 20,696 Recreation - deferral - - (28,502) (28,502) Recreation - unreconciled 25,000 25,000 24,043 (957) Total Recreation Revenue 5,392,751 5,392,751 5,430,427 37,676 (This schedule is continued on the following pages.) - 93 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year ended December 31, 2015 Variance with Final Budget Original Final Over Budget Budget Actual (Under) Revenues - Continued Charges for Services - Continued Other Charges for Services Birth and death records -$ -$ 5,299$ 5,299$ Health Clinic Fees - food establishment 185,000 185,000 328,424 143,424 Temporary license fee 7,500 7,500 8,466 966 Food delivery vehicle 5,500 5,500 5,283 (217) Beverage snack vending machine 28,000 28,000 34,751 6,751 Tobacco license 19,000 19,000 25,949 6,949 Beekeeper license - - 73 73 Birth certificate 56,000 56,000 110,283 54,283 Death certificate 56,000 56,000 31,688 (24,312) Funeral director license 6,000 6,000 13,490 7,490 Temp funeral director licenses 4,200 4,200 5,555 1,355 Parking meter fee increase 640,000 640,000 640,000 - Weights and exact measures examinations 1,200 1,200 155 (1,045) Senior Taxi coupon sales 108,000 108,000 73,175 (34,825) Fire cost recovery charge 10,000 10,000 2,640 (7,360) Other services charges - - 1,070 1,070 Historic preservation 7,200 7,200 9,338 2,138 Tree preservation revenue 3,500 3,500 6,950 3,450 Ambulance service 1,200,000 1,200,000 1,176,678 (23,322) Towing charges 1,000 1,000 - (1,000) Police report fees 20,000 20,000 26,275 6,275 Wood recycling 40,000 40,000 28,010 (11,990) Zoning fees 45,000 45,000 87,625 42,625 Fire building inspections - - 370 370 Fire report fee 8,000 8,000 10,755 2,755 Alarm panel subscription fees 111,000 111,000 130,513 19,513 Skokie animal board fee 8,000 8,000 - (8,000) Background check daycare providers 400 400 449 49 New pavement degradation 10,000 10,000 25,126 15,126 I Heart Evanston Trees project 10,000 10,000 (2,233) (12,233) Plan review 5,000 5,000 7,571 2,571 Total Other Service Charges 2,595,500 2,595,500 2,793,728 198,228 Total Charges for Services 7,988,251 7,988,251 8,224,155 235,904 Fines Ticket fines - parking 3,250,000 3,250,000 2,530,347 (719,653) Regular fines 298,449 298,449 115,164 (183,285) Animal ordinance penalties - - 7,884 7,884 Boot release fee 45,000 45,000 44,303 (697) Fire false alarm fines 140,000 140,000 64,102 (75,898) Police CTA detail 400,000 400,000 418,107 18,107 Police false alarm fines - - 38,615 38,615 (This schedule is continued on the following page.) - 94 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Revenues - Budget and Actual For the Fiscal Year ended December 31, 2015 Variance with Final Budget Original Final Over Budget Budget Actual (Under) Revenues - Continued Fines - Continued Police equipment fines -$ -$ 5,956$ 5,956$ Housing code violation fines 60,000 60,000 70,646 10,646 Permit penalty fees 7,500 7,500 18,019 10,519 Administrative adjudication fee 262,825 262,825 241,045 (21,780) Total Fines 4,463,774 4,463,774 3,554,188 (909,586) Investment income 50,000 50,000 6,573 (43,427) Other Revenues Women Out Walking 5,000 5,000 3,531 (1,469) Property sales and rentals 51,543 51,543 90,406 38,863 Donation 32,000 32,000 20,096 (11,904) Berglund Animal Hospital parking - - 2,400 2,400 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 153,300 153,300 542,628 389,328 Taxicab revenue - - 2,900 2,900 Teen Baby Nursery program 41,000 41,000 - (41,000) Market Link vouchers 16,500 16,500 33,803 17,303 Sale of Surplus Prop - - 1,486 1,486 Reimbursements - Serve and Protect 2,000 2,000 19,241 17,241 Reimbursements - Sale Use 75,000 75,000 65,204 (9,796) Reimbursements - Fire Department 25,000 25,000 43,229 18,229 Payment in lieu of taxes 267,000 267,000 61,500 (205,500) Fund balance applied 516,000 516,000 - (516,000) Private Elm Trees Insurance 41,000 41,000 38,734 (2,266) Citizens CPR Class fees 6,000 6,000 8,643 2,643 Parking permits - Ryan Field 15,000 15,000 17,120 2,120 JDE Water interface - - 43 43 Total Other Revenues 1,278,343 1,278,343 950,964 (327,379) Total Revenues 84,121,954$ 83,359,072$ 96,547,441$ 12,425,487$ (See independent auditor's report.) - 95 - CITY OF EVANSTON, ILLINOIS General Fund Schedule of Expenditures - Budget and Actual For the Fiscal Year Ended December 31, 2015 Original Final Budget Budget Actual Variance Expenditures General Management and Support City Coucil 424,917$ 424,917$ 417,835$ (7,082)$ City Manager and Budget Management 1,871,492 1,871,492 1,782,836 (88,656) City Clerk 246,214 246,214 279,999 33,785 Law Department 1,111,997 1,111,997 1,033,788 (78,209) Administrative Services 8,846,061 8,846,061 8,238,623 (607,438) Total General Management and Support 12,500,681 12,500,681 11,753,081 (747,600) Public Safety Police 27,672,025 27,672,025 37,135,417 9,463,392 Fire 14,457,241 14,457,241 21,325,899 6,868,658 Total Public Safety 42,129,266 42,129,266 58,461,316 16,332,050 Public Works Public Works Director 507,745 507,745 545,330 37,585 Municipal Services Director 386,432 386,432 381,488 (4,944) City Engineer 1,646,907 1,646,907 1,430,307 (216,600) Traffic Engineer 5,774,065 5,774,065 5,662,199 (111,866) Streets 8,452,004 8,452,004 8,843,853 391,849 Sanitation - - 3,776 3,776 Total Public Works 16,767,153 16,767,153 16,866,953 99,800 Health and Human Services Development Health and Human Services Director 328,009 328,009 331,074 3,065 Health Department 1,726,708 1,726,708 1,635,581 (91,127) Mental Health and Community Purchased Services 1,373,941 1,373,941 1,136,261 (237,680) Human Relations 859,153 859,153 38,083 (821,070) Total Health and Human Services Development 4,287,811 4,287,811 3,140,999 (1,146,812) Recreation and Cultural Opportunities Recreation 9,660,286 9,660,286 9,927,769 267,483 Ecology Center 462,887 462,887 486,328 23,441 Cultural Arts 612,727 612,727 665,758 53,031 Total Recreation and Cultural Opportunities 10,735,900 10,735,900 11,079,855 343,955 Housing and Economic Development Community Development Administration 337,304 337,304 350,864 13,560 Planning and Zoning 635,106 635,106 622,508 (12,598) Housing Rehabilitation and Property Standards - - 8,784 8,784 Building Code Compliance 1,402,118 1,402,118 1,377,597 (24,521) Total Housing and Economic Development 2,374,528 2,374,528 2,359,753 (14,775) Total Expenditures 88,795,339$ 88,795,339$ 103,661,957$ 14,866,618$ (See independent auditor's report.) - 96 - 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, 2015 Original and Final Budget Actual Taxes Property taxes Current year levy, net 10,879,993$ 10,989,093$ Prior year levy, net - 167,138 Investment income 1,500 7,668 Total Revenues 10,881,493 11,163,899 General management and support 193,285 158,835 Debt Service Principal 9,303,118 20,033,118 Interest 4,320,711 4,324,904 Fiscal agent fees 101,000 15,803 Total Expenditures 13,918,114 24,532,660 Excess (Deficiency) of Revenues Over Expenditures (3,036,621) (13,368,761) Issuance of bonds - 11,075,000 Premium on bond issuances - 362,986 Transfers in (out)2,743,836 2,483,141 Total Other Financing Sources (Uses)2,743,836 13,921,127 Net Changes in Fund Balances (292,785)$ 552,366 Fund Balances Beginning of Year 3,796,787 Prior period adjustment (1,753,037) Beginning of Year, Restated 2,043,750 End of Year 2,596,116$ Revenues Expenditures Other Financing Sources (Uses) (See independent auditor's report.) - 97 - 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 Evanston. 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. General Assistance - to account for the assistance given to persons and/or families to meet their basic living expenses. 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. Debt Service Funds Debt Service funds are used to account for the servicing of general long-term debt. Special Service Area No. 5 - To account for principal and interest payments on debt issued for this special taxing district. Southwest TIF - To account for principal and interest payments on debt proceeds issued and allocated to this tax increment financing district. 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. 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. Dempster-Dodge TIF - To account for principal and interest payments on debt proceeds issued and allocated to this tax increment financing district. Chicago-Main TIF - To account for principal and interest payments on debt proceeds issued and allocated to this tax increment financing district. CITY OF EVANSTON, ILLINOIS Combining Balance Sheet Nonmajor Governmental Funds December 31, 2015 Emergency Motor Fuel Economic Telephone Neighborhood Affordable Tax Development System Improvement Housing Cash and equivalents 1,745,296$ 2,099,511$ 392,583$ 169,915$ 978,743$ Receivables Property tax - - - - - Notes - 126,602 - - 1,636,031 Special assessments - - - - - Other - 461,289 174,715 - 36,721 Due from other governments 168,107 - - - - Due from other funds - - - - - Total Assets 1,913,403$ 2,687,402$ 567,298$ 169,915$ 2,651,495$ Liabilities Vouchers payable 83,010$ 4,818$ 15,580$ -$ 21,584$ Due to other governments - - - - - Due to other funds - - - - - Unearned revenue - - - - - Total Liabilities 83,010 4,818 15,580 - 21,584 Deferred Inflows of Resources Long-term notes receivable - 126,602 - - 1,636,031 Unavailable revenue - property taxes - - - - - Total Deferred Inflows of Resources - 126,602 - - 1,636,031 Total Liabilities and Deferred Inflows of Resources 83,010 131,420 15,580 - 1,657,615 Fund Balances Restricted for Highway Maintenance 1,830,393 - - - - Emergency Telephone System - - 551,718 - - HUD Approved Projects - - - - - Neighborhood Improvements - - - 169,915 993,880 Debt Service - - - - - Township - - - - - Committed - 2,555,982 - - - Assigned - - - - - Unassigned (deficit)- - - - - Total Fund Balances (Deficit)1,830,393 2,555,982 551,718 169,915 993,880 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,913,403$ 2,687,402$ 567,298$ 169,915$ 2,651,495$ Assets Special Revenue - 98 - Special Community Community Neighborhood Service Total Development Development Stabilization District General Special HOME Block Grant Loan Program 2 No. 4 Assistance Revenue 4,500$ 10,218$ 243,748$ 214,397$ -$ 521,542$ 6,380,453$ - - - - 314,374 800,000 1,114,374 4,678,445 196,352 1,925,242 - - - 8,562,672 - - - - - - - - - - - - - 672,725 12,866 101,394 - - - - 282,367 - - - - - - - 4,695,811$ 307,964$ 2,168,990$ 214,397$ 314,374$ 1,321,542$ 17,012,591$ 12,482$ 29,871$ 85,383$ -$ -$ 3,934$ 256,662$ - - - 213,634 - - 213,634 114 21,859 - 763 190,544 4,369 217,649 - - - - - - - 12,596 51,730 85,383 214,397 190,544 8,303 687,945 4,678,445 196,352 1,925,242 - - - 8,562,672 - - - - 314,374 800,000 1,114,374 4,678,445 196,352 1,925,242 - 314,374 800,000 9,677,046 4,691,041 248,082 2,010,625 214,397 504,918 808,303 10,364,991 - - - - - - 1,830,393 - - - - - - 551,718 4,770 59,882 158,365 - - - 223,017 - - - - - - 1,163,795 - - - - - - - - - - - - 513,239 513,239 - - - - - - 2,555,982 - - - - - - - - - - - (190,544) - (190,544) 4,770 59,882 158,365 - (190,544) 513,239 6,647,600 4,695,811$ 307,964$ 2,168,990$ 214,397$ 314,374$ 1,321,542$ 17,012,591$ Special Revnue (This schedule is continued on the following pages.) - 99 - CITY OF EVANSTON, ILLINOIS Combining Balance Sheet Nonmajor Governmental Funds December 31, 2015 Special Chicago Main Southwest Howard Hartrey Service Tax Tax Tax District Increment Increment Increment No. 5 District District District Cash and equivalents 525,429$ 602,070$ -$ 1,296,398$ Receivables Property tax - - - - Notes - - - - Special assessments - - - - Other - - - - Due from other governments - - - - Due from other funds - - - - Total Assets 525,429$ 602,070$ -$ 1,296,398$ Liabilities Vouchers payable -$ 290,000$ -$ 2,949$ Due to other governments - - - - Due to other funds - - - 12,334 Unearned revenue - - - - Total Liabilities - 290,000 - 15,283 Deferred Inflows of Resources Long-term notes receivable - - - - Unavailable revenue - property taxes - - - - Total Deferred Inflows of Resources - - - - Total Liabilities and Deferred Inflows of Resources - 290,000 - 15,283 Fund Balances Restricted for Highway Maintenance - - - - Emergency Telephone System - - - - HUD Approved Projects - - - - Neighborhood Improvements - - - - Debt Service 525,429 312,070 - 1,281,115 Township - - - - Committed - - - - Assigned - - - - Unassigned (deficit)- - - - Total Fund Balances (Deficit)525,429 312,070 - 1,281,115 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 525,429$ 602,070$ -$ 1,296,398$ Assets Debt Service - 100 - Washington National Dempster Dodge Howard Ridge West Evanston Special Total Tax Tax Tax Tax Total Assessment Total Nonmajor Increment Increment Increment Increment Debt Capital Capital Capital Governmental District District District District Service Improvements Projects Projects Funds 6,747,788$ -$ 150,248$ 447,351$ 9,769,284$ 8,019,809$ 2,674,718$ 10,694,527$ 26,844,264$ - - - - - - - - 1,114,374 - - - - - - - - 8,562,672 - - - - - - 303,578 303,578 303,578 - - - - - 136,730 7,155 143,885 816,610 - - - - - - - - 282,367 - - - - - - 908 908 908 6,747,788$ -$ 150,248$ 447,351$ 9,769,284$ 8,156,539$ 2,986,359$ 11,142,898$ 37,924,773$ 33,250$ -$ 16,508$ 88$ 342,795$ 2,303,491$ -$ 2,303,491$ 2,902,948$ - - - - - - - - 213,634 272,108 - 162,361 5,000 451,803 336,007 - 336,007 1,005,459 - - - - - - 303,578 303,578 303,578 305,358 - 178,869 5,088 794,598 2,639,498 303,578 2,943,076 4,425,619 - - - - - - - - 8,562,672 - - - - - - - - 1,114,374 - - - - - - - - 9,677,046 305,358 - 178,869 5,088 794,598 2,639,498 303,578 2,943,076 14,102,665 - - - - - - - - 1,830,393 - - - - - - - - 551,718 - - - - - - - - 223,017 - - - - - - 2,682,781 2,682,781 3,846,576 6,442,430 - 2,270 442,263 9,005,577 - - - 9,005,577 - - - - - - - - 513,239 - - - - - - - - 2,555,982 - - - - - 5,517,041 - 5,517,041 5,517,041 - - (30,891) - (30,891) - - - (221,435) 6,442,430 - (28,621) 442,263 8,974,686 5,517,041 2,682,781 8,199,822 23,822,108 6,747,788$ -$ 150,248$ 447,351$ 9,769,284$ 8,156,539$ 2,986,359$ 11,142,898$ 37,924,773$ Capital ProjectsDebt Service (See independent auditor's report.) - 101 - CITY OF EVANSTON, ILLINOIS Combining Statement of Revenues, Expeditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Fiscal Year Ended December 31, 2015 Emergency Community Motor Fuel Economic Telephone Neighborhood Affordable Development Tax Development System Improvement Housing HOME Block Grant Revenues Taxes -$ 2,116,843$ 977,071$ -$ 100,000$ -$ -$ Special assessments - - - - - - - Intergovernmental 2,465,781 - - - - 465,961 1,502,924 Charges for services - - - - - - - Investment income 819 129 190 - 111 19 - Miscellaneous Contributions - - - - 125,000 - - Other - 1,500 100 - 150 6,402 3,318 Total Revenues 2,466,600 2,118,472 977,361 - 225,261 472,382 1,506,242 Expenditures Current General management and support - - - - - - - Public safety - - 1,192,229 - - - - Public works 1,583,238 - - - - - - Recreation and cultural opportunities - - - - - - - Housing and economic development - 2,535,678 - - 214,851 490,440 993,131 Capital outlay - - - - - - - Debt service Principal - - - - - - - Interest - - - - - - - Fiscal agent fees - - - - - - - Total expenditures 1,583,238 2,535,678 1,192,229 - 214,851 490,440 993,131 Excess (Deficiency) of Revnues Over Expenditures 883,362 (417,206) (214,868) - 10,410 (18,058) 513,111 Other Financing Sources (Uses) Issuance of bonds - - - - - - - Issuance of loans Premium (discount) on bonds issued - - - - - - - Transfers in - 47,500 - - - - - Transfers (out)(833,000) (614,782) (141,767) - - (26,990) (453,229) Total Other Financing Sources (Uses)(833,000) (567,282) (141,767) - - (26,990) (453,229) Net Change in Fund Balances 50,362 (984,488) (356,635) - 10,410 (45,048) 59,882 Fund Balances (Deficit), January 1 1,780,031 3,540,470 908,353 169,915 2,546,920 4,580,079 184,902 Prior Period Adjustment - - - - (1,563,450) (4,530,261) (184,902) Fund Balances (Deficit), January 1, Restated 1,780,031 3,540,470 908,353 169,915 983,470 49,818 - Fund Balances (Deficit), December 31 1,830,393$ 2,555,982$ 551,718$ 169,915$ 993,880$ 4,770$ 59,882$ Special Revenue Debt Service - 102 - Special Chicago Main Southwest Community Neighborhood Special Service Total Service Tax Tax Development Stabilization District General Special District Increment Increment Loan Program 2 No. 4 Assistance Revenue No. 5 District District -$ -$ 322,055$ 1,313,420$ 4,829,389$ 422,526$ -$ -$ - - - - - - - - - 130,126 - - 4,564,792 - - - - - - - - - - - 375 - 4 61 1,708 5 - - - - - - 125,000 - - - 397,708 - - 22,742 431,920 - - - 398,083 130,126 322,059 1,336,223 9,952,809 422,531 - - - - - 782,701 782,701 - - - - - - - 1,192,229 - - - - - - - 1,583,238 - - - - - - - - - - - 282,380 134,148 323,000 - 4,973,628 - 580,000 893,387 - - - - - - - - - - - - - 255,000 - - - - - - - 42,150 7,930 - - - - - - - - - 282,380 134,148 323,000 782,701 8,531,796 297,150 587,930 893,387 115,703 (4,022) (941) 553,522 1,421,013 125,381 (587,930) (893,387) - - - - - - - - - 900,000 - - - - - - - - - - 8,213 - - 55,713 - - - - (4,191) - - (2,073,959) - - - - 4,022 - - (2,018,246) - 900,000 - 115,703 - (941) 553,522 (597,233) 125,381 312,070 (893,387) 2,350,661 - (153,365) 183,099 16,091,065 464,046 - 893,665 (2,307,999) - (36,238) (223,382) (8,846,232) (63,998) - (278) 42,662 - (189,603) (40,283) 7,244,833 400,048 - 893,387 158,365$ -$ (190,544)$ 513,239$ 6,647,600$ 525,429$ 312,070$ -$ Debt Service (This schedule is continued on the following pages.) - 103 - CITY OF EVANSTON, ILLINOIS Combining Statement of Revenues, Expeditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Fiscal Year Ended December 31, 2015 Howard Hartrey Dempster Washington National Howard Ridge West Evanston Tax Dodge Tax Tax Tax Tax Total Increment Increment Increment Increment Increment Debt District District District District District Service Revenues Taxes 1,248,231$ -$ 4,921,484$ 540,576$ -$ 7,132,817$ Special assessments - - - - - - Intergovernmental - - - - - - Charges for services - - - - - - Investment income 1,986 - 3,532 1,817 257 7,597 Miscellaneous Contributions - - - - - - Other - - - 64,176 - 64,176 Total Revenues 1,250,217 - 4,925,016 606,569 257 7,204,590 Expenditures Current General management and support - - - 581,915 (8,821) 573,094 Public safety - - - - - - Public works - - - - - - Recreation and cultural opportunities - - - - - - Housing and economic development 2,174,940 2,000,000 310,290 - - 5,958,617 Capital outlay - - - - - - Debt service Principal - - 545,000 - - 800,000 Interest - - 29,976 585 7,185 87,826 Fiscal agent fees - - 250 - - 250 Total expenditures 2,174,940 2,000,000 885,516 582,500 (1,636) 7,419,787 Excess (Deficiency) of Revnues Over Expenditures (924,723) (2,000,000) 4,039,500 24,069 1,893 (215,197) Other Financing Sources (Uses) Issuance of bonds - - - - - - Issuance of loans - 2,000,000 - - - 2,900,000 Premium (discount) on bonds issued - - - - - - Transfers in - - - - - - Transfers (out)(148,010) - (3,265,296) (107,500) (60,000) (3,580,806) Total Other Financing Sources (Uses)(148,010) 2,000,000 (3,265,296) (107,500) (60,000) (680,806) Net Change in Fund Balances (1,072,733) - 774,204 (83,431) (58,107) (896,003) Fund Balances (Deficit), January 1 2,369,483 - 6,186,704 295,119 500,370 10,709,387 Prior Period Adjustment (15,635) - (518,478) (240,309) - (838,698) Fund Balances (Deficit), January 1, Restated 2,353,848 - 5,668,226 54,810 500,370 9,870,689 Fund Balances (Deficit), December 31 1,281,115$ -$ 6,442,430$ (28,621)$ 442,263$ 8,974,686$ Debt Service - 104 - Special Total Assessment Total Nonmajor Capital Capital Capital Governmental Improvements Projects Projects Funds -$ -$ -$ 11,962,206$ - 147,831 147,831 147,831 270,268 - 270,268 4,835,060 87,391 - 87,391 87,391 3,815 2,219 6,034 15,339 150,000 - 150,000 275,000 - - - 496,096 511,474 150,050 661,524 17,818,923 172,067 4,242 176,309 1,532,104 - - - 1,192,229 1,365,064 - 1,365,064 2,948,302 7,230 - 7,230 7,230 - - - 10,932,245 8,926,479 224,708 9,151,187 9,151,187 - - - 800,000 - - - 87,826 - - - 250 10,470,840 228,950 10,699,790 26,651,373 (9,959,366) (78,900) (10,038,266) (8,832,450) 7,375,000 230,000 7,605,000 7,605,000 - - - 2,900,000 420,481 13,113 433,594 433,594 - - - 55,713 (490,000) - (490,000) (6,144,765) 7,305,481 243,113 7,548,594 4,849,542 (2,653,885) 164,213 (2,489,672) (3,982,908) 8,170,926 2,518,568 10,689,494 37,489,946 - - - (9,684,930) 8,170,926 2,518,568 10,689,494 27,805,016 5,517,041$ 2,682,781$ 8,199,822$ 23,822,108$ Capital Projects (See independent auditor's report.) - 105 - 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, 2015 Original and Final Budget Actual Variance Revenues Intergovernmental allotments 1,750,000$ 2,465,781$ 715,781$ Interest 1,000 819 (181) Total Revenues 1,751,000 2,466,600 715,600 Expenditures Public Works 1,700,000 1,583,238 (116,762) Excess (Deficiency) of Revenues Over Expenditures 51,000 883,362 832,362 Other Financing Sources (Uses) Transfers (out)(833,000) (833,000) - Net Change in Fund Balance (782,000)$ 50,362 832,362$ Fund Balances Beginning of Year 1,780,031 End of Year 1,830,393$ (See independent auditor's report.) - 106 - 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, 2015 Original and Final Budget Actual Variance Revenues Taxes and special assessments 1,800,000$ 2,116,843$ 316,843$ Interest 3,700 129 (3,571) Miscellaneous 65,500 1,500 (64,000) Total Revenues 1,869,200 2,118,472 249,272 Expenditures Housing and economic development 2,723,958 2,535,678 (188,280) Excess (Deficiency) of Revenues Over Expenditures (854,758) (417,206) 437,552 Other Financing Sources (Uses) Transfers in - 47,500 47,500 Transfers (out)(481,070) (614,782) (133,712) Other Financing Sources (Uses) - Net (481,070) (567,282) (86,212) Net Change in Fund Balance (1,335,828)$ (984,488) 351,340$ Fund Balances Beginning of Year 3,540,470 End of Year 2,555,982$ (See independent auditor's report.) - 107 - 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, 2015 Original Budget Final Budget Actual Variance Revenues Taxes and special assessments 1,038,239$ 1,038,239$ 977,071$ (61,168)$ Interest 1,000 1,000 190 (810) Miscellaneous - - 100 100 Total Revenues 1,039,239 1,039,239 977,361 (61,878) Expenditures Public safety 1,034,206 1,275,167 1,192,229 (82,938) Excess (Deficiency) of Revenues Over Expenditures 5,033 (235,928) (214,868) 21,060 Other Financing Sources (Uses) Transfers in (out)(141,767) (141,767) (141,767) - Net Change in Fund Balance (136,734)$ (377,695)$ (356,635) 21,060$ Fund Balance Beginning of Year 908,353 End of Year 551,718$ (See independent auditor's report.) - 108 - 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, 2015 Original and Final Budget Actual Variance Revenues Taxes and special assessments 20,000$ -$ (20,000)$ Expenditures Housing and economic cevelopment 50,000 - (50,000) Net Change in Fund Balance (30,000)$ - 30,000$ Fund Balances Beginning of Year 169,915 End of Year 169,915$ (See independent auditor's report.) - 109 - 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, 2015 Original and Final Budget Actual Variance Revenues Affordable housing demo tax 30,000$ 100,000$ 70,000$ Developer contributions 125,000 125,000 - Interest 228 111 (117) Miscellaneous 249,772 150 (249,622) Total Revenues 405,000 225,261 (179,739) Expenditures Housing and economic development 405,000 214,851 (190,149) Net Change in Fund Balance -$ 10,410 10,410$ Fund Balance Beginning of Year 2,546,920 Prior Period Adjustment (1,563,450) Beginning of Year, Restated 983,470 End of Year 993,880$ (See independent auditor's report.) - 110 - 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, 2015 Original and Final Budget Actual Variance Revenues Intergovernmental allotments 216,000$ 465,961$ 249,961$ Interest - 19 19 Miscellaneous - 6,402 6,402 Total Revenues 216,000 472,382 256,382 Expenditures Housing and economic development 216,000 490,440 274,440 Excess (Deficiency) of Revenues Over Expenditures - (18,058) (18,058) Other Financing Sources (Uses) Transfers (out)- (26,990) (26,990) Net Change in Fund Balance -$ (45,048) (45,048)$ Fund Balance Beginning of Year 4,580,079 Prior Period Adjustment (4,530,261) Beginning of Year, Restated 49,818 End of Year 4,770$ (See independent auditor's report.) - 111 - 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, 2015 Original and Final Budget Actual Variance Revenues Intergovernmental allotments grant from U.S. Department of Housing and Urban Development 1,400,000$ 1,502,924$ 102,924$ Miscellaneous 590,111 3,318 (586,793) Total Revenues 1,990,111 1,506,242 (483,869) Expenditures Housing and economic development 1,636,384 993,131 (643,253) Total Expenditures 1,636,384 993,131 (643,253) Excess (Deficiency) of Revenues Over Expenditures 353,727 513,111 159,384 Other Financing Sources (Uses) Transfers (out)(353,727) (453,229) (99,502) Other Financing Sources (Uses) - Net (353,727) (453,229) (99,502) Net Change in Fund Balance -$ 59,882 59,882$ Fund Balance Beginning of Year 184,902 Prior Period Adjustment (184,902) Beginning of Year, Restated - End of Year 59,882$ (See independent auditor's report.) - 112 - CITY OF EVANSTON, ILLINOIS Community Development Block Grant Fund Schedule of Expenditures - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended December 31, 2015 Original and Final Budget Actual Variance Administration/Planning CDBG administration 296,856$ 280,829$ 16,027$ Total Administration/Planning 296,856 280,829 16,027 Economic Development Evanston Community Development Corporation 150,000 - (150,000) Total Economic Development 150,000 - (150,000) Housing Rehab construction administration 184,817 127,345 (57,472) Total Housing 184,817 127,345 (57,472) Neighborhood Revitalization F/J locker rooms - 5,910 5,910 Block curb/sidewalk replacement 99,711 80,943 (18,768) Handyman assistance/elderly home representative 35,000 - (35,000) Alley improvement/paving program 400,000 132,353 (267,647) Snap lighting 75,000 11,424 (63,576) Special assessments/alley paving 10,000 3,420 (6,580) Infant Welfare Society - 19,397 19,397 YWCA shelter program - 25,000 25,000 Family Focus Center rehabilitation 60,000 26,447 (33,553) McGaw YMCA elevator - 45,000 45,000 School District 65 Oakton Playground - 4,115 4,115 YOU 30,000 - (30,000) General Project expenditures 60,000 - (60,000) Other improvements 25,000 - (25,000) Total Neighborhood Revitalization 794,711 354,009 (440,702) Public Services General project expenditures 7,500 - (7,500) Rehabilitation loans - 11,450 11,450 Evanston Community Defender 25,000 25,000 - Evanston Rebuilding Warehouse - 7,500 7,500 Evanston Legal Services 6,000 6,000 - Youth Job Center of Evanston 20,000 20,000 - Summer Youth 40,000 49,498 (9,498) YWCA Domestic Violence 24,000 24,000 - Family Focus 19,000 19,000 - Meals at Home 15,000 15,000 - Evanston School 6,000 9,500 (3,500) North Shore Senior Center 15,000 15,000 - Open Studio project 4,000 4,000 - Second Baptist Church - YAM 3,500 - 3,500 Interfaith Housing Program - Homeshare 10,000 10,000 - Iwork/hous options 15,000 15,000 - Total Public Services 210,000 230,948 1,952 Total Expenditures 1,636,384$ 993,131$ (630,195)$ (See independent auditor's report.) - 113 - 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, 2015 Original and Final Budget Actual Variance Revenues Intergovernmental allotments 187,000$ -$ (187,000)$ Interest 100 375 275 Miscellaneous - 397,708 397,708 Total Revenues 187,100 398,083 210,983 Expenditures Housing and economic development 187,100 282,380 95,280 Net Change in Fund Balance -$ 115,703 (115,703)$ Fund Balances Beginning of Year 2,350,661 Prior Period Adjustment (2,307,999) Beginning of Year, Restated 42,662 End of Year 158,365$ (See independent auditor's report.) - 114 - 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, 2015 Original and Final Budget Actual Variance Revenues Intergovernmental allotments -$ 130,126$ 130,126$ Miscellaneous 500,000 - (500,000) Total Revenues 500,000 130,126 (369,874) Expenditures Housing and economic development 371,905 134,148 (237,757) Total Expenditures 371,905 134,148 (237,757) Excess (Deficiency) of Revenues Over Expenditures 128,095 (4,022) (132,117) Other Financing Sources (Uses) Transfers in (out) Tranfers from General Fund (7,500) 8,213 15,713 Transfers to Debt Service Fund (4,191) (4,191) - Total Other Financing Sources (Uses)(11,691) 4,022 15,713 Net Change in Fund Balance 116,404$ - (116,404)$ Fund Balances Beginning of year - Ending of year -$ (See independent auditor's report.) - 115 - 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, 2015 Original and Final Budget Actual Variance Revenues Property taxes Current year 320,000$ 320,790$ 790$ Prior year - 1,265 1,265 Investment income - 4 4 Total Revenues 320,000 322,059 2,059 Expenditures Housing and economic development 320,000 323,000 3,000 Net Change in Fund Balance -$ (941) (941)$ Fund Balance Beginning of Year (153,365) Prior period adjustment (36,238) Beginning of Year, Restated (189,603) End of Year (190,544)$ (See independent auditor's report.) - 116 - 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, 2015 Original and Final Budget Actual Variance Revenues Property taxes 1,348,553$ 1,313,420$ (35,133)$ Investment income 1,000 61 (939) Miscellaneous 25,000 22,742 (2,258) Total Revenues 1,374,553 1,336,223 (38,330) Expenditures General management and support 1,370,369 782,701 (587,668) Net Change in Fund Balance 4,184$ 553,522 549,338$ Fund Balance Beginning of Year 183,099 Prior period adjustment (223,382) Beginning of Year, Restated (40,283) Ending 513,239$ (See independent auditor's report.) - 117 - CITY OF EVANSTON, ILLINOIS Capital Improvements Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2015 Original and Final Budget Actual Variance Revenues Intergovermental allotments 5,424,000$ 270,268$ (5,153,732)$ Charges for services - 87,391 87,391 Investment income 10,000 3,815 (6,185) Miscellaneous Contributions - 150,000 150,000 Total Revenues 5,434,000 511,474 (4,922,526) Expenditures General management and support - 172,067 172,067 Public works - 1,365,064 1,365,064 Recreation and cultural opportunities - 7,230 7,230 Capital outlay 18,692,150 8,926,479 (9,765,671) Total Expenditures 18,692,150 10,470,840 (8,221,310) Excess (Deficiency) of Revenues Over Expenditures (13,258,150) (9,959,366) 3,298,784 Other Financing Sources (Uses) Issuance of bonds 7,585,650 7,375,000 (210,650) Premium on issuance of bonds - 420,481 420,481 Transfers in 250,000 - (250,000) Transfers (out)(490,000) (490,000) - Total Other Financing Sources (Uses)7,345,650 7,305,481 (40,169) Net Change in Fund Balance (5,912,500)$ (2,653,885) 3,258,615$ Fund Balances Beginning of Year 8,170,926 End of Year 5,517,041$ (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, 2015 Original and Final Budget Actual Variance Revenues Special assessments 230,000$ 147,831$ (82,169)$ Investment income 1,200 2,219 1,019 Total Revenues 231,200 150,050 (81,150) Expenditures Current General management and support - 4,242 (4,242) Capital outlay 501,000 224,708 276,292 Total Expenditures 501,000 228,950 272,050 Excess (Deficiency) of Revenues Over Expenditures (269,800) (78,900) 190,900 Other Financing Sources (Uses) Issuance of bonds 250,000 230,000 (20,000) Premium on issuance of bonds - 13,113 13,113 Transfers (out)(260,698) - 260,698 Other Financing Sources (Uses) - Net (10,698) 243,113 253,811 Net Change in Fund Balance (280,498)$ 164,213 444,711$ Fund Balance Beginning of Year 2,518,568 End of Year 2,682,781$ (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, 2015 Original and Original and Final Budget Actual Final Budget Actual Taxes Property taxes Current year levy, net 425,000$ 418,735$ -$ -$ Prior year levy, net - 3,791 - - Investment income 300 5 - - Miscellaneous - - - - Total Revenues 425,300 422,531 - - General management and support - - - - Housing and economic development - - 2,900,000 580,000 Debt Service Principal 390,000 255,000 - - Interest 35,175 42,150 - 7,930 Fiscal agent fees - - - - Total Expenditures 425,175 297,150 2,900,000 587,930 Excess (Deficiency) of Revenues Over Expenditures 125 125,381 (2,900,000) (587,930) Issuance of bonds - - - - Issuance of loans - - 2,900,000 900,000 Transfers in (out) General - - - - IMRF - - - - Economic Development - - - - Total Other Financing Sources (Uses)- - 2,900,000 900,000 Net Changes in Fund Balances 125$ 125,381 -$ 312,070 Fund Balances (Deficit) Beginning of Year 464,046 - Prior period adjustment (63,998) - Beginning of Year, Restated 400,048 - End of Year 525,429$ 312,070$ Chicago Main Tax Increment District Special Expenditures Revenues Service District Other Financing Sources (Uses) No. 5 - 120 - Original and Original and Original and Final Budget Actual Final Budget Actual Final Budget Actual -$ -$ 1,150,000$ 1,248,231$ 4,900,000$ 4,888,882$ - - - - - 32,602 - - 4,500 1,986 10,000 3,532 - - - - - - - - 1,154,500 1,250,217 4,910,000 4,925,016 - - - - - - 861,217 893,387 3,500,000 2,174,940 2,300,000 310,290 - - - - 545,000 545,000 - - - - 30,000 29,976 - - - - - 250 861,217 893,387 3,500,000 2,174,940 2,875,000 885,516 (861,217) (893,387) (2,345,500) (924,723) 2,035,000 4,039,500 - - - - - - - - - - - - - - (148,010) (148,010) (340,000) (340,000) - - - - (2,925,296) (2,925,296) - - - - - - - - (148,010) (148,010) (3,265,296) (3,265,296) (861,217)$ (893,387) (2,493,510)$ (1,072,733) (1,230,296)$ 774,204 893,665 2,369,483 6,186,704 (278) (15,635) (518,478) 893,387 2,353,848 5,668,226 -$ 1,281,115$ 6,442,430$ National Tax Washington Increment District Increment District Increment District Southwest Tax Howard Hartrey Tax (This schedule is continued on the following page.) - 121 - 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, 2015 Original and Original and Original and Final Budget Actual Final Budget Actual Final Budget Actual Revenues Taxes Property taxes Current year levy, net 545,000$ 529,021$ -$ -$ 7,020,000$ 7,084,869$ Prior year levy, net - 11,555 - - - 47,948 Investment income 500 1,817 100 257 15,400 7,597 Miscellaneous 100,500 64,176 - - 100,500 64,176 Total Revenues 646,000 606,569 100 257 7,135,900 7,204,590 Expenditures General management and support 690,000 581,915 95,000 (8,821) 785,000 573,094 Housing and economic development - - - - 9,561,217 3,958,617 Debt Service - - Principal - - - - 935,000 800,000 Interest 600 585 10,000 7,185 75,775 87,826 Fiscal agent fees - - - - - 250 Total Expenditures 690,600 582,500 105,000 (1,636) 11,356,992 5,419,787 Excess (Deficiency) of Revenues Over Expenditures (44,600) 24,069 (104,900) 1,893 (4,221,092) 1,784,803 O Issuance of bonds 200,000 - - - 200,000 - Issuance of loans - - 105,000 - 3,005,000 900,000 Transfers in (out) General (60,000) (60,000) (60,000) (60,000) (608,010) (608,010) IMRF - - - - (2,925,296) (2,925,296) Economic Development (47,500) (47,500) - - (47,500) (47,500) Total Other Financing Sources (Uses)92,500 (107,500) 45,000 (60,000) (375,806) (2,680,806) Net Changes in Fund Balances 47,900$ (83,431) (59,900)$ (58,107) (4,596,898)$ (896,003) Fund Balances (Deficit) Beginning of Year 295,119 500,370 10,709,387 Prior period adjustment (240,309) - (838,698) Beginning of Year, Restated 54,810 500,370 9,870,689 End of Year (28,621)$ 442,263$ 8,974,686$ Increment District Totals Howard Ridge Tax West Evanston Tax Increment District (See independent auditor's report.) - 122 - ENTERPRISE FUNDS Water Fund - To account for all activity related to providing water to Evanston 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 City 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, Expenditures, and Changes in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2015 Budget Actual Operating Revenues Charges for services 15,253,000$ 15,005,360$ Miscellaneous 506,100 716,246 Total Operating Revenues 15,759,100 15,721,606 Operating Expenses Excluding Depreciation Administration 1,528,130 1,473,338 Operations Pumping 2,426,701 1,752,932 Filtration 2,612,781 2,015,362 Distribution 1,724,142 2,395,818 Meter maintenance 194,336 202,921 Other 19,349,100 420,562 Total Operating Expenses Excluding Depreciation 27,835,190 8,260,933 Operating Income (Loss) Before Depreciation (12,076,090) 7,460,673 Depreciation - 2,096,633 Operating Income (Loss)(12,076,090) 5,364,040 Non-Operating Revenues (Expenses) Investment income 10,000 5,981 Interest Expense (434,254) (390,461) Net book value of fixed assets disposed - 302,700 Total Non-Operating Revenues (Expenses)(424,254) (81,780) Income (Loss) Before Transfers (12,500,344) 5,282,260 Transfers Transfers (out)(3,194,053) (3,194,053) Total Transfers In (Out)(3,194,053) (3,194,053) Net Income (15,694,397)$ 2,088,207 Net Position Beginning of Year 66,279,631 Change in accounting principle (101,305) Prior period adjustment (55,806) Beginning of Year, Restated 66,122,520 End of Year 68,210,727$ (See independent auditor's report.) - 123 - CITY OF EVANSTON, ILLINOIS Water Fund - Operation and Maintenance Account Schedule of Operating Revenues - Budget and Actual For the Fiscal Year Ended December 31, 2015 Budget Actual Charges for Services, Net Water Sales Evanston 6,983,000$ 6,952,396$ Skokie 2,970,000 2,863,525 Northwest Water Commission 5,300,000 5,189,439 Total Charges for Services 15,253,000 15,005,360 Miscellaneous Fees and outside work 45,000 40,911 Fees, merchandise, and other 461,100 675,335 Total Miscellaneous 506,100 716,246 Total Operating Revenues 15,759,100$ 15,721,606$ (See independent auditor's report.) - 124 - INTERNAL SERVICE FUNDS 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. Equipment Replacement Fund - To account for the costs associated with the purchase of vehicles and equipment. 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 Equipment Replacement Fleet Services Insurance Total Current Assets Cash and cash equivalents 1,069,403$ -$ 1,183,113$ 2,252,516$ Receivables - other - 6,238 - 6,238 Inventories - 806,876 - 806,876 Prepaid items 395,071 - 1,470,348 1,865,419 Due from other funds 141,733 - 1,240,019 1,381,752 Total Current Assets 1,606,207 813,114 3,893,480 6,312,801 Capital Assets Capital Assets being depreciated 23,074,067 617,552 - 23,691,619 Accumulated depreciation (15,034,715) (617,404) - (15,652,119) Total Capital Assets 8,039,352 148 - 8,039,500 Total Assets 9,645,559 813,262 3,893,480 14,352,301 Current Liabilities Vouchers payable 328,518 166,886 1,677 497,081 Due to other funds - 141,733 - 141,733 Compensated absences payable - 13,341 5,786 19,127 Claims payable - - 1,209,500 1,209,500 Total Current Liabilities 328,518 321,960 1,216,963 1,867,441 Long-Term Liabilities Compensated absences payable - 53,363 23,145 76,508 OPEB liability - 72,331 - 72,331 Claims payable - - 3,017,868 3,017,868 Total Long-Term Liabilities - 125,694 3,041,013 3,166,707 Total Liabilities 328,518 447,654 4,257,976 5,034,148 Net Position (Deficit) Net Investment in Capital Assets 8,039,352 148 - 8,039,500 Unrestricted 1,277,689 365,460 (364,496) 1,278,653 Total Net Position (Deficit)9,317,041$ 365,608$ (364,496)$ 9,318,153$ December 31, 2015 (See independent auditor's report.) - 125 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position For the Fiscal Year Ended December 31, 2015 Equipment Replacement Fleet Services Insurance Total Operating Revenues Charges for services General Fund 1,242,590$ 2,632,726$ 2,275,216$ 6,150,532$ Sewer Fund - 186,615 269,988 456,603 Solid Waste 177,132 312,975 - 490,107 Water Fund - 131,101 468,493 599,594 Motor Vehicle Parking System Fund 30,000 23,092 319,649 372,741 Library Fund 1,700 2,500 - 4,200 Emergency Telephone System - - 17,448 17,448 Economic Development - - 17,448 17,448 Community Development Block Grant - - 17,448 17,448 Claims reimbursements - - 291,311 291,311 Health insurance contributions - - 13,992,626 13,992,626 Miscellaneous - 46,934 47 46,981 Total Operating Revenues 1,451,422 3,335,943 17,669,674 22,457,039 Operating Expenses General support - 253,031 - 253,031 Major maintenance 53,399 2,570,689 - 2,624,088 General liability claims - - 692,338 692,338 Workers' compensation claims - - 1,813,262 1,813,262 Health Insurance Premiums - - 13,406,758 13,406,758 Other - - 171,226 171,226 Total Operating Expenses 53,399 2,823,720 16,083,584 18,960,703 Operating Income Before Depreciation 1,398,023 512,223 1,586,090 3,496,336 Depreciation 1,684,835 - - 1,684,835 Operating Income (Loss)(286,812) 512,223 1,586,090 1,811,501 Non-Operating Revenues (Expenses) Investment income - - 136 136 Gain on sale of property 34,286 - - 34,286 Total Non-Operating Revenues (Expenses)34,286 - 136 34,422 Income (Loss) Before Transfers (252,526) 512,223 1,586,226 1,845,923 Transfers Transfers (out)- (25,820) (8,936) (34,756) Total Transfers In (Out)- (25,820) (8,936) (34,756) Change in Net Position (252,526) 486,403 1,577,290 1,811,167 Total Net Position (Deficit) - Beginning 9,569,567 (120,795) (3,381,927) 6,066,845 Prior period adjustment - - 1,440,141 1,440,141 Total Net Position (Deficit) - Beginning, Restated 9,569,567 (120,795) (1,941,786) 7,506,986 Total Net Position (Deficit) - Ending 9,317,041$ 365,608$ (364,496)$ 9,318,153$ (See independent auditor's report.) - 126 - CITY OF EVANSTON, ILLINOIS Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended December 31, 2015 Equipment Replacement Fleet Services Insurance Total Cash Flows from Operating Activities Receipts from customers and users 1,451,422$ 3,355,261$ 17,669,674$ 22,476,357$ Receipts from/(payments for) interfund services provided 409,431 (287,366) (91,064) 31,001 Payments to suppliers 761,251 (1,867,214) (277,982) (1,383,945) Payments to employees - (1,183,151) (2,476,669) (3,659,820) Payments for insurance premiums - - (14,122,356) (14,122,356) Net Cash Provided from Operating Activities 2,622,104 17,530 701,603 3,341,237 Cash Flows from Noncapital Financing Activities Transfers in (out)- (25,820) (8,936) (34,756) Net Cash from Noncapital Financing Activities - (25,820) (8,936) (34,756) Cash Flows from Capital and Related Financing Activities Sale of capital assets 85,036 - - 85,036 Acquisition and construction of capital assets (2,389,156) - - (2,389,156) Net Cash from Capital and Related Financing Activities (2,304,120) - - (2,304,120) Cash Flows from Investing Activities Interest Income - - 136 136 Net Cash from Investing Activities - - 136 136 Net Increase (Decrease) in Cash and Cash Equivalents 317,984 (8,290) 692,803 1,002,497 Cash and Equivalents Beginning 751,419 8,290 490,310 1,250,019 Ending 1,069,403$ -$ 1,183,113$ 2,252,516$ Reconciliation of Operating Income (Loss) to Net Cash Provided from Operating Activities Operating Income (Loss)(286,812)$ 512,223$ 1,586,090$ 1,811,501$ Adjustments to reconcile operating income to net cash provided from operating activities Depreciation 1,684,835 - - 1,684,835 Changes in assets and liabilities Increase/decrease in accounts receivable miscellaneous - 19,318 - 19,318 Interfund receivable 409,431 141,733.00 (91,064) 460,100 Prepaid expenses 621,740 - (30,207) 591,533 Inventories - (55,728) - (55,728) Compensated absences - (53,902) 28,931 (24,971) OPEB liability - 10,226 - 10,226 Vouchers payable 192,910 (127,241) (76,549) (10,880) Interfund payable - (429,099) - (429,099) Claims payable - - (715,598) (715,598) Net Cash Provided from Operating Activities 2,622,104$ 17,530$ 701,603$ 3,341,237$ (See independent auditor's report.) - 127 - COMPONENT UNIT - PUBLIC LIBRARY CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS Combining Balance Sheet/Statement of Net Position December 31, 2015 Statement of Operating Endowment Debt Service Total Adjustments Net Position Assets Cash and investments 1,180,706$ 3,744,525$ 141,651$ 5,066,882$ -$ 5,066,882$ Property taxes receivable 6,054,180 - 385,541 6,439,721 - 6,439,721 Other receivables 95 - - 95 - 95 Capital assets not being depreciated - - - - 311,380 311,380 Capital assets net of accumulated depreciation - - - - 12,511,235 12,511,235 Total Assets 7,234,981 3,744,525 527,192 11,506,698 12,822,615 24,329,313 Deferred Outflows of Resources Pension items - IMRF - - - - 1,595,019 1,595,019 Total Assets and Deferred Outflows of Resources 7,234,981$ 3,744,525$ 527,192$ 11,506,698$ 14,417,634$ 25,924,332$ Liabilities, Deferred Inflows of Resources, and Fund Balances Current liabilities Accounts payable 283,420$ -$ -$ 283,420$ -$ 283,420$ Other payable 3,270 - - 3,270 - 3,270 Due to primary government 400,124 - 104,987 505,111 - 505,111 Unearned revenue 4,141 - - 4,141 - 4,141 Total Current Liabilities 690,955 - 104,987 795,942 - 795,942 Noncurrent Liabilities Due within one year 69,761 - - 69,761 323,241 393,002 Due in more than one year - - - - 3,218,037 3,218,037 Total Noncurrent Liabilities 69,761 - - 69,761 3,541,278 3,611,039 Total Liabilities 760,716 - 104,987 865,703 3,541,278 4,406,981 Deferred Inflows of Resources Unavailable property taxes 6,054,180 - 385,541 6,439,721 - 6,439,721 Total Liabilities and Deferred Inflows of Resources 6,814,896 - 490,528 7,305,424 3,541,278 10,846,702 Fund Balances Net investment in capital assets - - - - 11,179,234 11,179,234 Restricted for endowment - 3,744,525 - 3,744,525 - 3,744,525 Unassigned/unrestricted 420,085 - 36,664 456,749 (302,878) 153,871 Total Fund Balances/Net Position 420,085 3,744,525 36,664 4,201,274 10,876,356 15,077,630 Total Liabilities, Deferred Inflows, and Fund Balances/Net Position 7,234,981$ 3,744,525$ 527,192$ 11,506,698$ 14,417,634$ 25,924,332$ (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, 2015 Statement of Operating Endowment Debt Service Total Adjustments Activities Revenues Property taxes 5,916,852$ -$ 601,811$ 6,518,663$ -$ 6,518,663$ Intergovernmental Personal property replacement tax 46,059 - - 46,059 - 46,059 State grant revenue 181,283 - - 181,283 - 181,283 Charges for services 445,800 - - 445,800 - 445,800 Other Investment income 2,682 (53,728) - (51,046) - (51,046) Donations - 50,500 - 50,500 - 50,500 Miscellaneous 185 - - 185 - 185 Total Revenues 6,592,861 (3,228) 601,811 7,191,444 - 7,191,444 Expenditures Current Community services 6,604,133 - - 6,604,133 (137,844) 6,466,289 Debt Service Principal - - 481,936 481,936 (481,936) - Interest and fiscal charges - - 80,802 80,802 - 80,802 Total Expenditures 6,604,133 - 562,738 7,166,871 (619,780) 6,547,091 Excess (Deficiency) of Revenues Over Expenditures (11,272) (3,228) 39,073 24,573 619,780 644,353 Other Financing Sources (Uses) Transfer in 172,979 - - 172,979 (172,979) - Transfer (out)(327,268) (172,979) - (500,247) 172,979 (327,268) Total Other Financing Sources (Uses)(154,289) (172,979) - (327,268) - (327,268) Change in Fund Balance/Net Position (165,561) (176,207) 39,073 (302,695) 619,780 317,085 Fund Balances/Net Position Beginning of Year 1,378,970 3,920,732 93,595 5,393,297 10,371,421 15,764,718 Change in accounting principle - - - - (114,845) (114,845) Prior period adjustment (793,324) - (96,004) (889,328) - (889,328) Beginning of Year, Restated 585,646 3,920,732 (2,409) 4,503,969 10,256,576 14,760,545 End of Year 420,085$ 3,744,525$ 36,664$ 4,201,274$ 10,876,356$ 15,077,630$ (See independent auditor's report.) - 129 - CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS Library Operating Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended December 31, 2015 Original and Final Budget Actual Variance Revenues Property taxes 5,813,505$ 5,916,852$ 103,347$ Intergovernmental Personal property replacement tax 50,200 46,059 (4,141) State grant revenue 183,327 181,283 (2,044) Charges for services 412,360 445,800 33,440 Other Investment income - 2,682 2,682 Miscellaneous - 185 185 Total Revenues 6,459,392 6,592,861 133,469 Expenditures General management and support 6,303,124 6,604,133 301,009 Total Expenditures 6,303,124 6,604,133 (301,009) Excess (Deficiency) of Revenues Over Expenditures 156,268 (11,272) 434,478 Other Financing Sources (Uses) Transfers in 171,000 172,979 1,979 Transfers (out)(327,268) (327,268) - Total Other Financing Sources (Uses)(156,268) (154,289) (1,979) Net Change in Fund Balance -$ (165,561) 432,499$ Fund Balance Beginning of Year 1,378,970 Prior period adjustment (793,324) Beginning of Year, Restated 585,646 End of Year 420,085$ (See independent auditor's report.) - 130 - 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. ’s financial performance and well ’s ’s current levels of outstanding debt and the ’s ’s financial ’s financial report relates to the 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) Fiscal Year 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015** Governmental Activities Net investment in capital assets 31,133$ 31,542$ 37,278$ 41,109$ 49,483$ 57,663$ 60,105$ 47,214$ 46,633$ 47,953$ Restricted 30,034 23,168 26,238 23,645 23,187 31,559 31,754 24,720 25,446 16,409 Unrestricted 25,171 28,231 17,539 10,400 4,072 (24,033) (23,729) (13,846) (11,436) (136,007) Total Governmental Activities Net Position 86,338$ 82,941$ 81,055$ 75,154$ 76,742$ 65,189$ 68,130$ 58,088$ 60,643$ (71,645)$ Business-Type Activities Net investment in capital assets 140,621$ 159,185$ 172,399$ 192,921$ 207,162$ 215,755$ 228,738$ 239,243$ 246,382$ 255,622$ Restricted 9,374 1,986 1,987 3,378 1,624 1,034 710 712 649 - Unrestricted 21,417 23,589 27,586 25,417 19,141 25,385 26,363 25,484 23,563 22,785 Total Business-Type Activities Net Position 171,412$ 184,760$ 201,972$ 221,716$ 227,927$ 242,174$ 255,811$ 265,439$ 270,594$ 278,407$ Primary Government Net investment in capital assets 171,754$ 190,727$ 209,677$ 234,030$ 256,645$ 273,418$ 288,843$ 286,457$ 293,015$ 303,575$ Restricted 39,408 25,154 28,225 27,023 24,811 32,593 32,464 25,432 26,095 16,409 Unrestricted 46,588 51,820 45,125 35,817 23,213 1,352 2,634 11,638 12,127 (113,222) Total Primary Government Net Position 257,750$ 267,701$ 283,027$ 296,870$ 304,669$ 307,363$ 323,941$ 323,527$ 331,237$ 206,762$ * 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 - 131 - CITY OF EVANSTON, ILLINOIS Changes in Net Position Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Ended 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015 Expenses Governmental Activities General government 19,951$ 20,072$ 18,017$ 19,773$ 17,517$ 17,911$ 22,508$ 18,892$ 13,811$ 12,493$ Public safety 46,368 48,763 49,484 50,488 53,226 43,465 52,740 57,090 58,795 57,443 Public works 16,505 21,566 21,628 18,509 15,626 12,399 11,099 13,782 25,825 20,011 Health and human resource development 6,108 4,982 4,546 4,760 4,541 3,547 3,200 3,601 3,837 2,911 Housing and economic development 7,924 7,090 6,965 20,066 10,857 11,630 19,101 11,123 12,443 10,532 Culture and recreation 18,303 20,634 20,002 9,120 20,142 15,607 17,438 16,433 9,358 14,794 Interest on long-term debt 6,926 5,522 4,041 4,396 5,595 3,114 1,786 377 3,919 3,757 Total governmental activities expenses 122,085 128,629 124,683 127,112 127,504 107,673 127,872 121,298 127,988 121,941 Business-Type Activities Water 8,778 8,668 9,391 9,133 8,713 7,450 10,172 11,193 11,977 10,748 Sewer 9,588 8,972 8,726 8,779 8,784 7,083 7,872 7,649 7,293 6,608 Solid waste - - - - - 4,317 4,612 4,732 4,856 5,150 Motor vehicle parking system 2,963 2,403 8,896 8,841 8,425 6,673 8,297 8,369 7,856 7,862 Sherman garage 1,613 4,270 - - - - - - - - Maple avenue garage 2,910 2,682 - - - - - - - - Total Business-Type Activities 25,852 26,995 27,013 26,753 25,922 25,523 30,953 31,943 31,982 30,368 Total primary government expenses 147,937$ 155,624$ 151,696$ 153,865$ 153,426$ 133,196$ 158,825$ 153,241$ 159,970$ 152,309$ Program Revenues Governmental Activities Charges for services General government 13,630$ 12,639$ 13,348$ 13,087$ 12,796$ 9,219$ 9,478$ 8,917$ 9,374$ 8,629$ Culture and recreation 4,353 4,521 4,637 4,902 5,265 4,587 9,934 5,236 5,360 5,572 Other activities 8,779 14,518 10,289 7,946 9,377 8,523 11,349 12,179 15,253 11,268 Operating grants and contributions 3,679 5,982 5,117 5,898 9,851 9,861 13,453 10,102 7,151 5,535 Capital grants and contributions 185 118 113 4,037 8,026 3,941 2,017 2,956 501 275 Total Governmental Activities Program Revenues 30,626 37,778 33,504 35,870 45,315 36,131 46,231 39,390 37,639 31,279 Business-Type Activities Charges for ervices Water 12,639 13,239 13,685 12,694 13,738 12,369 14,967 14,658 15,052 15,722 Sewer 14,394 14,239 13,774 13,243 13,393 11,377 14,115 13,510 12,785 12,511 Sherman garage 779 1,950 - - - - - - - - Solid waste - - - - - 2,900 3,490 3,651 3,971 4,004 Motor vehicle parking system 3,059 3,084 6,719 6,772 5,987 4,928 6,663 6,255 6,080 6,164 Maple avenue garage fund 1,417 1,430 - - - - - - - - Operating grants and contributions - - - - - - 395 939 15 - Total Business-Type Activities Program Revenues 32,288 33,942 34,178 32,709 33,118 31,574 39,630 39,013 37,903 38,401 Total Primary Government Program Revenues 62,914$ 71,720$ 67,682$ 68,579$ 78,433$ 67,705$ 85,861$ 78,403$ 75,542$ 69,680$ Net (Expense)/Revenue Governmental Activities (91,459)$ (90,851)$ (91,179)$ (91,242)$ (82,189)$ (71,542)$ (81,641)$ (81,908)$ (90,349)$ (90,662)$ Business-Type Activities 6,436 6,947 7,165 5,956 7,196 6,051 8,677 7,070 5,921 8,033 Total Primary Government Net Expense (85,023)$ (83,904)$ (84,014)$ (85,286)$ (74,993)$ (65,491)$ (72,964)$ (74,838)$ (84,428)$ (82,629)$ General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes 61,983$ 46,947$ 56,217$ 58,839$ 47,040$ 33,399$ 47,874$ 46,349$ 48,579$ 45,840$ Sales taxes 14,387 16,172 15,500 14,880 15,577 13,495 15,888 16,965 17,362 17,758 Investment earnings 3,752 3,653 360 721 557 32 398 79 (258) 30 Miscellaneous 17,287 25,799 26,684 24,601 27,501 21,244 25,348 27,369 26,612 30,950 Transfers (616) (5,116) (9,469) (13,700) (99) (8,180) (4,926) (2,586) 610 631 Total Governmental Activities 96,793 87,455 89,292 85,341 90,576 59,990 84,582 88,176 92,905 95,209 Business-Type Activities Investment earnings 1,344 1,287 606 87 23 16 34 33 (156) 27 Miscellaneous - - (28) - - - - (61) - 301 Transfers 616 5,116 9,469 13,700 99 8,180 4,926 2,586 (610) (631) Total Business-Type Activities 1,960 6,403 10,047 13,787 122 8,196 4,960 2,558 (766) (303) Changes in Net Position Governmental Activities 5,334$ (3,396)$ (1,887)$ (5,901)$ 8,387$ (11,552)$ 2,941$ 6,268$ 2,556$ 4,547$ Business-Type Activities 8,396 13,350 17,212 19,743 7,318 14,247 13,637 9,628 5,155 7,730 Total Primary Government 13,730$ 9,954$ 15,325$ 13,842$ 15,705$ 2,695$ 16,578$ 15,896$ 7,711$ 12,277$ * The City changed its fiscal year end to December 31, 2011. Source: City Finance Division - 132 - CITY OF EVANSTON, ILLINOIS Fund Balances, Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015 General Fund Nonspendable - - - - - - - - - 118$ Reserved/Restricted 1,327 1,108 1,275 1,585 1,995 - - - - - Unreserved/Restricted 24,866 24,840 19,752 18,603 20,009 - - - - - Assigned - - - - - 7,590 6,848 6,362 5,347 5,672 Unassigned - - - - - 10,803 10,186 10,001 9,636 4,914 Total General Fund 26,193$ 25,948$ 21,027$ 20,188$ 22,004$ 18,393$ 17,034$ 16,363$ 14,983$ 10,704$ All Other Governmental Funds Reserved 31,741$ 29,739$ 31,757$ 28,953$ 28,738$ -$ -$ -$ -$ -$ Unreserved, reported in Special Revenue Funds 5,587 6,649 10,356 10,807 10,907 - - - - - Capital Projects Funds 23,965 25,620 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 Committed - - - - - 806 2,150 3,507 3,540 2,556 Assigned - - - - - 10,074 5,307 8,372 10,467 5,517 Unassigned - - - - - (175) 1,105 (149) (153) (221) Total All Other Governmental Funds 61,293$ 62,008$ 63,012$ 49,036$ 49,310$ 44,477$ 40,993$ 37,496$ 41,287$ 26,419$ * The City changed its fiscal year end to December 31, 2011. Notes: Fund balances for debt service have been included in the reserved amounts. 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 Fiscal Year Ended - 133 - CITY OF EVANSTON, ILLINOIS Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (amounts expressed in thousands) 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015 Revenues Taxes 77,137$ 75,767$ 84,035$ 84,726$ 73,559$ 56,466$ 79,331$ 78,254$ 77,933$ 75,747$ Licenses, fees and permits 8,061 10,276 8,820 7,279 8,661 6,776 10,470 10,617 14,503 12,184 Fines and penalties 4,029 4,660 4,442 4,151 4,003 3,280 3,470 3,449 3,358 148 Charges for services 7,167 7,732 8,399 8,680 9,786 6,283 7,763 7,723 7,793 23,834 Special assessments 565 520 516 240 429 235 293 275 167 8,312 Intergovernmental 21,402 22,625 21,013 20,696 26,456 23,183 29,252 27,844 24,300 3,554 Investment earnings 3,695 3,402 272 714 555 22 397 94 89 30 Other Revenues 5,578 5,116 4,679 4,642 6,390 4,133 2,915 1,906 1,791 1,722 Total Revenues 127,634 130,098 132,176 131,128 129,839 100,378 133,891 130,162 129,934 125,531 Expenditures General government 14,539 18,190 16,498 16,184 23,463 13,594 18,532 17,611 13,314 13,444 Public safety 39,690 42,466 49,999 48,970 50,352 42,140 54,611 56,431 59,425 59,654 Public works 14,282 18,868 18,913 16,062 14,053 7,574 9,380 11,982 19,821 19,815 Recreation and cultural opportunities 16,683 19,118 18,942 18,100 17,399 16,192 14,309 14,775 10,524 3,141 Health and human development 5,850 4,982 4,546 4,760 4,541 3,588 3,200 3,601 3,837 11,087 Housing and economic development 7,683 7,089 6,963 9,120 11,345 11,999 19,095 11,305 9,348 13,292 Pensions 5,645 - - - - - - - - - Capital outlay 18,986 12,416 8,209 7,960 7,112 5,832 8,523 5,948 6,286 9,151 Debt service - Interest 6,927 5,128 5,143 4,953 4,878 4,384 5,175 4,996 4,411 4,413 Fiscal agent fees 517 42 28 5 12 79 76 127 43 16 Principal 11,530 10,815 9,885 7,524 7,650 10,106 13,055 34,259 10,040 20,833 Total Governmental Activities Expenditure 142,332 139,114 139,126 133,638 140,805 115,488 145,956 161,035 137,049 154,846 Net (Expense)/Revenue Governmental Activities (14,698) (9,016) (6,950) (2,510) (10,966) (15,110) (12,065) (30,873) (7,115) (29,315) Other Financing Sources (Uses) Proceeds from borrowing 24,916 31,444 24,340 - 13,393 15,420 12,618 34,982 9,989 22,377 Capitalized interest income - - 839 - 120 - - - - - Capitalized interest expense - - - - - - - - - - Escrow funding (14,368) (15,590) (13,280) - - - - - - - Transfers in 6,529 8,975 5,927 11,019 5,727 5,839 9,271 8,182 9,202 10,308 Transfers (out)(10,528) (15,344) (14,794) (23,324) (6,184) (14,593) (14,668) (11,879) (9,665) (9,315) Total Other Financing Sources (Uses)6,549 9,485 3,032 (12,305) 13,056 6,666 7,221 31,285 9,526 23,370 Net Changes in Fund Balance (8,149)$ 469$ (3,917)$ (14,815)$ 2,090$ (8,444)$ (4,844)$ 412$ 2,411$ (5,945)$ Debt Service as a Percentage of Noncapital Expenditures 14.96%12.58%11.48%9.93%9.36%13.29%13.26%25.31%11.05%17.62% * The City changed its fiscal year end to December 31, 2011. Source: City Finance Division Fiscal Year Ended - 134 - 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 2005 1,680,183,692$ 16,895$ 500,330,397$ 61,756,603$ 465,435$ 2,242,753,022$ 6,728,259,066$ 1.491 2006 1,707,669,215 16,895 476,821,737 60,920,888 464,011 2,245,892,746 6,737,678,238 1.527 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 Note: Source: Cook County Assessor's office Property is reassessed once every three years. Equalized Assessed value is approximately 1/3 of actual value. Tax rates are per $100 of equalized assessed value. - 135 - CITY OF EVANSTON, ILLINOIS Principal Property Taxpayers Current Year and Nine Years Ago 2014 Levy 2005 Levy Percentage Percentage Total of Total City Total of Total City Equalized Assessed Taxable Equalized Assessed Taxable Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV Rotary International 25,715,912$ 1 1.15%Golub & Company 23,175,168$ 1 0.96% FSP 909 Davis Street 20,391,572 2 0.91%Rotary International 22,007,653 2 0.91% Lowe Enterprises 18,484,963 3 0.82%REP CBRE 19,828,403 3 0.82% McCaffery Interests 15,636,226 4 0.70%Church Street Plaza 14,627,674 4 0.60% Evanston Hotel Assoc.9,992,465 5 0.45%Church & Chicago Ltd Partnership 12,463,272 5 0.51% Inland 9,759,474 6 0.43%Evanston Hotel Assoc.12,361,644 6 0.51% Northshore University Health 9,557,404 7 0.43%Albertson's (Jewel & Osco)10,717,417 7 0.44% Target Proptax T927 7,492,520 8 0.33%Target Proptax T927 9,159,847 8 0.38% TIAA Pk Evanston Inc 7,379,412 9 0.33%Evanston NW Healthcare 9,124,467 9 0.38% 500 Davis St Holdings 7,013,472 10 0.31%The Home Depot 7,735,969 10 0.32% Total 131,423,421$ 5.86% Total 141,201,514$ 5.83% Total EAV 2,244,569,975$ Total EAV 2,423,486,132$ Source: Cook County - 136 - 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 2006 34,399,146$ 33,249,612$ 96.66%437,287$ 33,686,899$ 97.93% 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 See Note See Note See Note See Note See Note Note: Levy Year 2015 is collected beyond fiscal year end 2015 through December 31, 2016. Source: City Finance Division - 137 - 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 2007 74,239 2,242,753,022$ 187,745,000$ 6,504,507$ 96,780,000$ 84,460,493$ 2,902,967,617$ 3.77%2.91%1,137.68$ 2008 74,239 2,245,892,746 181,750,000 6,146,567 81,455,000 94,148,433 2,902,967,617 4.19%3.24%1,268.18 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 3,262,734,750 4.99%3.43%1,481.80 * 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. - 138 - 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 Capital Lease Bonds Bonds Loans Government Income Capita 2007 110,920,000$ 3,070,000$ -$ 76,825,000$ 3,240,000$ 99,490,921$ 293,545,921$ 10.11%3,954$ 2008 115,220,000 2,785,000 - 66,530,000 2,755,000 103,410,887 290,700,887 10.01%3,916 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 - 33,221,257 595,000 70,375,368 225,130,367 7.09%3,022 2013 119,123,639 1,175,000 - 30,411,358 305,000 64,658,382 215,673,379 6.93%2,890 2014 119,060,744 795,000 - 30,566,097 - 58,412,659 208,834,500 6.40%2,763 2015 117,752,440 405,000 - 31,911,608 - 51,901,172 209,138,551 6.69%2,767 * The City changed its fiscal year end to December 31, 2011. Notes: Source: City Finance Division (1) Details regarding the City's outstanding debt can be found in the notes to the financial statements. (2) See the Schedule of Demographics and Economic Statistics for personal income and population data. Governmental Activities Business- Type Activities - 139 - Percentage of Debt The City's Total Applicable Share of Debt Outstanding to the City (1) Direct debt - bonds, notes, and contracts outstanding 126,013,721$ 100.00%126,013,721$ Other bonded debt by taxing body County of Cook 3,629,037,767 1.75%63,508,161 Cook County Forest Preserve District 191,698,444 1.75%3,354,723 Metropolitan Water Reclamation District 2,655,365,000 1.82%48,327,643 Community College District 535 37,480,000 11.65%4,366,420 High School District 202 24,485,764 90.13%22,069,019 School District 65 81,287,568 90.13%73,264,485 Skokie Park District 6,515,000 63.00%4,104,450 Total Overlapping Debt 6,625,869,543 218,994,901 6,751,883,264$ 345,008,622$ Note: Overlapping debt calculated based on the pro rata EAV. Source: Cook County Clerk's Offices CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities Debt As of December 31, 2015 - 140 - The City is a home rule municipality. To date, the Illinois General Assembly has set no limits for home rule municipalities. CITY OF EVANSTON, ILLINOIS Legal Debt Margin December 31, 2015 “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. - 141 - 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 2007 13,196,942$ 6,900,063$ 6,296,879$ 470,000$ 145,088$ 10.24 2008 13,787,014 7,138,056 6,648,958 485,000 128,713 10.83 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 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. - 142 - 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 2006 74,239 2,902,967,617$ 39,103$ 32.5 94.0%9,550 4.5% 2007 74,239 2,902,967,617 39,103 32.5 94.0%9,550 4.4% 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% Source: Various Government agencies - 143 - CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Nine Years Ago Employer Employees %Rank Employer Employees %Rank Northwestern University 9,534 49%1 Northwestern University 5,600 39%1 Northshore University Healthcare 4,114 21%2 Evanston Northwestern Healthcare 3,000 21%2 Evanston School District 65 1,554 8%3 St. Francis Hospital 1,870 13%3 St. Francis Hospital 1,000 5%4 Evanston School District 65 1,100 8%4 City of Evanston 839 4%5 City of Evanston 891 6%5 Presbyterian Homes/McGaw Care 606 3%6 Evanston Township High School 550 4%6 School District 202 585 3%7 Presbyterian Homes/McGaw Care 500 3%7 Rotary International 500 2%8 Rotary International 400 3%8 Whole Foods 386 2%9 Solucient 275 2%9 C.E. Neifhoff & Co.350 2%10 Whole Foods 190 1%10 Total 19,468 Total 14,376 Source: City Economic Development Division 2015 2006 - 144 - CITY OF EVANSTON, ILLINOIS Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015 Function/Program General Government City Clerk 2.00 2.00 2.00 2.00 2.00 3.00 2.80 2.20 2.20 2.00 City Manager's Office 7.25 13.70 31.53 27.70 22.00 8.00 12.00 12.00 14.00 13.00 MBIS / IT 23.80 25.50 - - 13.00 12.00 11.50 9.00 11.00 12.00 Legal 7.00 7.00 7.00 6.00 7.00 7.00 7.00 8.00 7.00 8.00 Human Resources 8.00 8.00 8.00 8.00 5.00 5.00 7.50 8.00 8.50 6.50 Finance 25.50 26.50 29.50 28.50 19.50 19.00 17.10 17.00 17.50 20.50 Parking Systems - - - - 13.00 12.00 12.00 9.00 12.00 12.00 Facilities Management 21.20 - - - - 19.00 20.20 16.00 - Community Development 36.00 36.00 35.00 33.00 28.00 27.00 27.00 24.00 21.00 19.00 Community College District 535 Police 221.75 220.75 220.75 218.50 219.00 222.00 225.00 220.00 227.00 227.00 Fire 111.00 111.00 112.00 111.00 107.00 108.00 110.00 106.00 110.00 110.00 Human and Health Services 40.15 29.68 24.90 26.40 15.90 17.00 17.70 20.00 21.10 22.10 Public Works 90.25 108.45 105.45 83.25 58.80 49.00 49.25 97.00 108.45 107.45 Human Relations 4.00 - - - - - - - - Library 67.19 66.69 69.35 67.50 52.00 52.00 56.38 63.00 63.13 66.45 Recreation, Parks, and Forestry 119.90 115.90 112.75 131.75 132.00 105.00 105.21 69.00 69.64 74.23 Total General Government 784.99 771.17 758.23 743.60 694.20 665.00 680.64 680.20 692.52 700.23 Neighborhood Stabilization Program - - - - 1.00 1.00 2.00 1.00 1.31 0.50 Housing Rehabilitation - - - - - - - - - 1.75 General Assistance Fund - - - - - - - - - 4.00 HOME Fund - - - - - - - - - 0.40 Emergency Telephone System 4.00 4.00 4.00 5.00 5.00 5.00 5.00 4.00 5.00 5.00 CDBG 2.00 2.00 2.00 2.00 2.00 3.00 1.53 3.00 2.60 2.60 Economic Development Fund 1.45 1.30 2.30 2.30 5.00 6.00 7.00 5.00 6.25 6.25 Downtown II TIF Fund 1.00 - - - - - - - - - Capital Improvements Fund - - - - 1.00 - - - - - Maple Ave. Garage 1.00 1.00 1.00 - - - - - - - Parking Fund 14.50 14.50 14.50 15.50 14.00 15.00 15.50 15.50 15.50 15.50 Water 43.00 43.00 43.00 43.00 42.00 41.00 42.50 40.00 42.50 44.50 Sewer 14.00 14.00 14.00 14.00 12.00 11.00 13.00 11.00 13.33 11.33 Solid Waste - - - - - 6.00 10.00 8.00 9.66 9.66 Fleet Services 17.00 15.00 15.00 15.00 11.00 12.00 12.00 10.00 12.00 12.50 Insurance Fund 1.30 1.00 2.00 2.00 3.00 4.00 4.00 4.00 5.00 5.00 Total Other Functions 99.25 95.80 97.80 98.80 96.00 104.00 112.53 101.50 113.15 118.99 Total All Funds 884.24 866.97 856.03 842.40 790.20 769.00 793.17 781.70 805.67 819.22 * The City changed its fiscal year end to December 31, 2011. Source: City of Evanston HR Division Fiscal Year Ended - 145 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 City of Evanston 1.527 1.283 1.295 1.204 1.365 1.592 1.551 1.760 1.856 1.766 Consolidated Elections - 0.012 - 0.021 - 0.025 - - - - Cook County 0.500 0.446 0.415 0.394 0.423 0.462 0.531 0.560 0.591 0.568 Cook County Forest Preserve District 0.057 0.053 0.051 0.049 0.051 0.058 0.063 0.069 0.073 0.069 Suburban T.B. Sanitarium 0.005 - - - - - - - - - Metropolitan Water Reclamation District 0.284 0.263 0.252 0.261 0.274 0.320 0.370 0.417 0.440 0.430 North Shore Mosquito Abatement District 0.009 0.008 0.008 0.008 0.009 0.010 0.010 0.007 0.007 0.011 Evanston Township 0.058 0.050 0.050 0.042 0.046 0.011 0.010 0.053 0.056 - Community College 535 0.166 0.141 0.140 0.140 0.160 0.196 0.219 0.256 0.270 0.258 School District 202 2.099 1.750 1.722 1.616 1.819 2.061 2.308 2.689 2.836 2.659 School District 65 3.045 2.535 2.552 2.401 2.655 2.818 3.149 3.671 3.872 3.686 Total Tax Rate for Property not in Park District or Special Service District 7.750 6.541 6.485 6.136 6.802 7.553 8.211 9.482 10.001 9.447 Percent of Total Tax Rate Levied by City of Evanston 19.70%19.61%19.97%19.62%20.07%21.08%18.89%18.56%18.56%18.69% Source: Cook County Assessor's office Tax Levy Year Government Unit - 146 - CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (in 100 cubic feet) 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015 Type of Customer Residential 2,388,360$ 2,375,942$ 2,260,284$ 2,174,255$ 2,187,244$ 1,804,433$ 2,276,492$ 2,189,588$ 2,065,980$ 2,098,160$ Industrial 16,307 16,579 15,722 13,624 14,195 11,552 14,758 12,392 11,627 10,772 Commercial 1,278,334 1,240,591 1,193,241 1,109,556 1,153,949 928,621 1,117,431 1,105,077 1,036,034 1,045,791 Government 96,777 100,278 89,420 69,229 75,308 50,129 66,561 61,908 53,732 55,485 Total 3,779,778$ 3,733,390$ 3,558,667$ 3,366,664$ 3,430,696$ 2,794,735$ 3,475,242$ 3,368,965$ 3,167,373$ 3,210,208$ Total direct rate per 100 cubic feet 1.47$ 1.52$ 1.52$ 1.52$ 1.52$ 1.52$ 1.75$ 1.80$ 1.98$ 2.18$ * The City changed its fiscal year end to December 31, 2011. Source: City Utilities Department Fiscal Year Ended - 147 - CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years 2007 2008 2009 2010 2011 2011*2012 2013 2014 2015 Type of Customer Evanston residents/businesses 5,804,517$ 6,012,643$ 5,430,019$ 5,396,739$ 5,377,297$ 4,719,084$ 6,124,221$ 5,915,560$ 6,301,307$ 6,975,785$ Village of Skokie 2,891,834 3,158,396 2,689,304 2,676,163 2,885,096 2,304,066 2,989,109 2,772,424 2,805,425 2,854,684 Northwest Water Commission 3,497,989 3,620,878 4,820,074 4,506,066 4,781,645 3,710,581 5,033,996 5,183,425 5,074,770 5,183,391 Total 12,194,340$ 12,791,917$ 12,939,397$ 12,578,968$ 13,044,038$ 10,733,731$ 14,147,326$ 13,871,409$ 14,181,502$ 15,013,860$ * The City changed its fiscal year end to December 31, 2011. Source: City Utilities Department Fiscal Year Ended - 148 - CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Police Violent offenses 224 282 299 255 214 180 230 131 97 80 Property offenses 2,942 2,825 2,739 2,412 2,119 2,144 2,078 1,980 1,959 1,872 911 calls received 55,795 59,135 56,717 52,198 35,991 51,969 44,875 42,551 44,177 46,749 Fire Emergency responses 8,173 8,517 9,134 8,566 8,917 9,063 9,330 9,373 9617 9630 Fires extinguished 220 192 185 154 157 157 154 129 120 99 Inspections 1,320 1,050 1,810 709 680 620 640 660 740 760 Other Public Works Street resurfacing (estimated miles)3.3 3.3 3.3 3.3 3.4 3.4 3.4 3.4 4.9 2.7 Parks and Recreation Athletic field usage (hours)15,561 15,165 17,121 16,185 18,966 20,075 16,761 16,367 16,270 15,531 Picnic permits issued 319 373 403 431 460 437 541 445 448 404 Library Volumes in collection 495,575 458,017 502,019 502,019 471,262 436,382 426,342 400,034 401,300 481,626 Total volumes borrowed 897,141 867,743 945,952 945,952 951,667 891,769 989,638 1,056,243 1,074,972 1,071,401 Water New connections 104 61 57 28 29 16 4 - 18 9 Water main breaks 48 36 52 52 38 28 66 51 70 23 Average daily consumption (millions of gallons)41.41 42.91 40.09 39.41 38.91 38.39 39.85 35.81 36.79 36.63 Peak daily consumption (millions of gallons)66.49 66.00 65.40 58.94 57.02 65.95 69.21 56.95 48.91 50.59 Note: Indicators are not available for general government functions Source: Various City departments Calendar Year - 149 - CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Police Number of stations 1 1 1 1 1 1 1 1 1 1 Budgeted sworn officers 162 162 165 165 164 164 164 164 164 164 Fire Stationsmy c 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 5,641 5,641 5641 5641 5641 5641 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 5 5 6 Water Water mains (miles)159 157 157 157 157 157 157 157 157 156.4 Fire hydrants 1347 1370 1370 1399 1399 1399 1399 1399 1477 1484 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 Source: City Finance division Calendar Year - 150 - COMPLIANCE SECTION 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, 2015. 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 standar ds established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides 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, 2015, 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 August 5, 2016 - 151 -