HomeMy WebLinkAbout2014 Annual Comprehensive Financial ReportCITY OF EVANSTON, ILLINOIS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2014
Prepared by Administrative Services Department
CITY OF EVANSTON, ILLINOIS
Table of Contents
PAGE
Principal Officials 6
Organization Chart 7
Letter of Transmittal 8
Certificate of Achievement for Excellence in Financial Reporting 16
INDEPENDENT AUDITORS' REPORT 19
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis 23
BASIC FINANCIAL STATEMENTS
Statement of Net Position 32
Statement of Activities 34
Governmental Funds Balance Sheet 36
Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances 37
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 38
Proprietary Funds Statement of Net Position 39
Changes in Fund Net Position 41
42
Fiduciary Funds - Statement of Net Position 44
Fiduciary Funds - Pension Trust Funds - Statement of Changes in
Plan Net Position 45
Notes to the Financial Statements
Index for Notes to the Financial Statements 46
Notes to the Financial Statements 49
REQUIRED SUPPLEMENTARY INFORMATION
Firefighters' Pension Fund, Police Pension Fund, Illinois Municipal Retirement Fund
and Post Employment Benefits other than Pension - Schedules of Funding Progress 111
Firefighters' and Police Pension Funds - Schedules of
Employer Contribution 112
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Police Pension Fund 113
Firefighters' Pension Fund 114
Pension Funds Schedule of Employer Contributions 115
Pension Funds Notes to Schedule of Contributions 116
Pension Funds Schedule of Investment Returns 117
General Fund - Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual (Budgetary Basis)118
Notes to the Required Supplementary Information 119
Digest of Changes - IMRF 119
Conversion from GAAP basis to Budgetary basis 119
INTRODUCTORY SECTION
FINANCIAL SECTION
- 1 -
CITY OF EVANSTON, ILLINOIS
Table of Contents
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES PAGE
GOVERNMENTAL FUND TYPES
Nonmajor Governmental Funds Combining Balance Sheet 122
Schedule of Revenues - Budget and Actual (Budgetary Basis) 130
Schedule of Expenditures - Budget and Actual (Budgetary Basis)136
CAPITAL PROJECTS FUNDS
Capital Improvements
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)138
SPECIAL REVENUE FUNDS
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)139
Economic Development Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)140
Emergency Telephone System Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)141
Neighborhood Improvement
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)142
Affordable Housing Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)143
HOME Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)144
Community Development Block Grant Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)145
Schedule of Expenditures - Budget and Actual (Budgetary Basis)146
Community Development Loan
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)148
Neighborhood Stabilization Program 2
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)149
- 2 -
CITY OF EVANSTON, ILLINOIS
Table of Contents
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued)PAGE
Special Service District No. 4 Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)150
General Assistance Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)151
CAPITAL PROJECTS FUNDS
Special Assessment Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Budgetary Basis)152
DEBT SERVICE FUNDS
All Funds
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual (Budgetary Basis)153
PROPRIETARY FUND TYPES
WATER FUND
Schedule of Net Position 155
Schedule of Changes in Net Position - Reserved - Restricted Accounts 156
Operation and Maintenance Account - Schedule of Revenues, Expenses,
and Changes in Unreserved Net Position - Budget and Actual 157
Operation and Maintenance Account - Schedule of Operating Revenues
Budget and Actual 158
INTERNAL SERVICE FUNDS
All Funds
Combining Statement of Net Position 160
Combining Statement of Revenues, Expenses, and
Changes in Net Position 161
Combining Statement of Cash Flows 162
EVANSTON LIBRARY COMPONENT UNIT
Statement of Net Position and Governmental Funds Combining Balance Sheet 165
Statement of Activities and Governmental Funds Combining Statement of
Revenue, Expenditures, and Changes in Fund Balance/Net Position 166
Library Operating Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance (Budgetary Basis)167
- 3 -
CITY OF EVANSTON, ILLINOIS
Table of Contents
PAGE
170
171
172
173
Equalized Assessed Value and Actual Value of Taxable Property 174
Principal Property Taxpayers 175
176
Ratio of General Bonded Debt Outstanding 177
Ratio of Outstanding Debt by Type 178
Direct and Overlapping Governmental Activities 179
Pledged - Revenue Coverage 180
Demographic and Economic Statistics - Last Ten Years 181
Principal Employers 182
Full-Time Equivalent City Government Employees by Function 183
Property Tax Rates per $100 - Direct and Overlapping Governments 184
Water Sold by Type of Customer (in 100 cubic feet)185
Water Sold by Major Customers 186
Operating Indicators by Function/Program 187
Capital Assets Statistics by Function 188
Independent Accountants' Report on Compliance - Tax Increment Financing Districts 190
TAX INCREMENT FINANCING DISTRICT REQUIREMENTS
Changes in Fund Balances - Governmental Funds
STATISTICAL SECTION (UNAUDITED)
Net Position by Component
Changes in Net Position
Fund Balances - Governmental Funds
- 4 -
- 5 -
INTRODUCTORY SECTION
-6 -
CITY OF EVANSTON, ILLINOIS
Principal Officials
December 31, 2014
LEGISLATIVE
EXECUTIVE
ADMINISTRATIVE SERVICES DEPARTMENT
FINANCE DIVISION
Martin
Ashley King, Assistant Director
Wally Bobkiewicz, City Manager
Martin
Elizabeth B. Tisdahl, Mayor
Judy Fiske Delores A. Holmes
Peter Braithwaite Mark Tendam
Melissa A. Wynne Jane Grover
Donald N. Wilson Ann Rainey
Coleen Burrus
POLICE
CITY OF EVANSTON
ORGANIZATION CHART
RESIDENTS
MAYOR
AND COMMISSIONS CITY CLERK
CITY MANAGER
ADMINISTRATIVE
SERVICES PUBLIC WORKS
LAW UTILITIES
PARKS, RECREATION &
COMMUNITY SERVICES
COMMUNITY
DEVELOPMENT
HEALTH AND
HUMAN SERVICES
FIRE
- 7 -
City Manager’s Office
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.866.2936
TTY 847.448.8064
www.cityofevanston.org
-8 -
July 23, 2015
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, 2014 is hereby submitted. The CAFR is prepared
by the City’s Administrative Services Department 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 present fairly the financial position and results of operations of the
various funds and capital assets of the City. All disclosures needed to enable the reader
to understand the City's financial activities have been included.
This report consists of management’s representations concerning the finances of the
City of Evanston for the period of January 1, 2014 to December 31, 2014. Management
assumes full responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal
control framework that is designed to both protect the government’s assets from loss,
theft, or misuse and to compile sufficient reliable information for the preparation of the
City of Evanston’s financial statements in conformity with 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
-9 -
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 units,
Evanston Township and Library. The Evanston Township Board of Trustees has the
same members as the City Council. The financial statements of Evanston Township
include the numbers for 4 months (01/01/2014-04/30/2014).The Township Board of
Trustees passed an ordinance dissolving the Township effective as of May 1, 2014.The
City has taken over the functions of the Township as of this date.
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 Baker Tilly Virchow Krause, 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, 2014, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates by management, and evaluating the overall
financial statement presentation. The independent auditors concluded, based upon the
audit, that there was a reasonable basis for rendering an unmodified opinion that the
City’s financial statements for the fiscal year ended December 31, 2014, 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, an urban center, and lakefront;it
has apartment, condominium, and student housing; its residents are commuters and
locally employed workers; its downtown is prospering,and neighborhood commercial
centers 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
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.328.2100
TTY 847.448 8064
www.cityofevanston.org
-10 -
approximately 75,000 is diverse by race, religion, age, education, economics, and
occupation. W ith 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 W ilmette.
In 1863, the Village of Evanston was incorporated as a town and, after several
annexations, in 1892, the town became a city. The City’s southern boundary was
established with the City of Chicago and the present City limits, encompassing an area
of approximately eight square miles, have been essentially the same ever since. The
City has four miles of shoreline along Lake Michigan.
Evanston is the home of Northwestern University, so named as it was established to
serve the Northwest Territory. The University first platted the village which surrounded
it. The State Legislature named the Village “Evanston” in honor of Dr. John Evans, the
then president of the University’s Board. 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 for a four-year term. The Aldermen each represent one of nine wards and are
elected to terms of four years. The City Council is organized into 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 eleven 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
-11 -
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 2015 began on January 1, 2015 The City
Manager submitted to the City Council a proposed operating budget in October for the
fiscal year 2015 commencing the following January 1. The City staff will start a budget
process for fiscal year 2016 in July 2015. The Council is expected to adopt the budget
by November, 2015.
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 of the City
(CAFR) presents expenditures and revenues on both a GAAP basis and a budgetary
basis for comparison.
The City uses funds to report on its financial position and the results of its operations.
Fund accounting is designated to demonstrate legal compliance and to aid financial
management by segregating transactions related to certain City functions or activities.
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
34.45% ($91 million-including transfers)of all City expenditures will occur in the General
Fund. Other major funds include the Capital Improvement, Employer Pension
Contribution,General Obligation Debt, Parking, Water, and Sewer Funds.
The Enterprise Funds (W ater, Parking, Solid Waste Fund and Sewer) are operated and
budgeted on a full accrual basis. Expenditures 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).
City Manager’s Office
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.866.2936
TTY 847.448.8064
www.cityofevanston.org
-12 -
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/deferred outflows
of resources, liabilities/deferred inflows of resources, 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 only if expenditures are within the authorized
budget, by fund.
MAJOR INITIATIVES –FISCAL YEAR 2015
The City Manager’s Office will: partner with Pace on bus market analysis and pilot
project to develop an integrated pilot that offers transportation and City services to
seniors via Ventra; work with City business stakeholders to develop more promotion of
transit via real-time transit screen and other tools with a focus on the Purple Line
Express; and finalize painting and beautification leases for viaducts and surrounding
tracks with Union Pacific. The department will develop, in conjunction with Public
Works, Sustainability, and EPD, a bike education and awareness outreach campaign to
support the Bike Plan and advance funding options for multi-modal transportation –
Divvy Bike Share, transit amenities, and other bike infrastructure –through local
partnerships, i.e., Northwestern University, Evanston Hospital, St. Francis Hospital and
other major employers
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 analyze and evaluate new risk management strategies for City
departments.
The Administrative Services Department will: initiate a potential restructuring within the
Accounting Division to properly align the Collection, Tax Assessment Review and
General Assistance functions; complete installation of a new Parking Access and
Revenue Control System (PARCS) in the three downtown parking garages with an RFP
to select a vendor to manage the downtown parking garage and an RFP and select a
vendor to update the security cameras in the downtown parking Garages. Parking will
also install six electric vehicle charging stations in the Sherman parking garage. The
City’s new financial software will continue to be installed and implemented as well as
150 additional figural desktops and additional network storage.
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.328.2100
TTY 847.448 8064
www.cityofevanston.org
-13 -
The Community Development Department will: Continue neighborhood revitalization
and affordable housing. The department will continue to have a special emphasis on the
multi-family rehab program and acquisition and rehab of foreclosed properties as part
of housing activity. The department will continue the improvements to the PAL Permit
System.
The Police Department will: Continue to purchase new cameras and related equipment
for use within the Evanston community.The Police department continues to play a
central role in the continued success of 311 Center.
The Fire Department will:offer Community Emergency Response Team (CERT) training
courses and provide advanced Cardiac Life Support training to all paramedics. The
Department will offer a citizens fire academy, and offer Shift Chief and Fire Captain
promotional exams.The Department will continue to spearhead the continuity of city
business operations planning, which is a citywide initiative.
The Health and Human Services Department will: develop targeted program to address
the condition of rental housing by using a three-pronged approach focusing on
inspections, education, and licensing. The Department will initiate a pilot program to
address asthma in school-aged children and prepare for national accreditation through
the Public Health Accreditation Board.
The Public Works Department will: Undertake major Public Right of Way improvements
including Bike plan update, citywide sidewalk replacement, citywide traffic calming,
Dempster street signal modernization, Emerson-Ridge-Green Bay Construction, and
water main replacements. The department will also focus on Civic Center Security
Improvements and the Fountain Square design. The Department will continue to work
closely with all local, state, and federal agencies involved with the control of the
Emerald Ash Borer (EAB). Staff will continue to investigate the feasibility of attracting
research institutions and/or companies to Evanston to aid in possible curative measures
being experimented with and implemented, as well as to locate and apply for any grant
funds available for tree removals or planting to replace those being lost due to EAB.
The Public Works Department will develop an implementation schedule for the
replacement of Park trees within one year of removal to improve park property
aesthetics and continue the three-year cycle of elm injections using both City
employees as well as an outside contractor every third year and evaluate the success of
the program overall, which currently stands at just less than 99%
The Parks, Recreation and Community Services will: Promote the “Age Friendly
Evanston” to provide a system to educate, encourage, promote, and recognize
improvements to make Evanston more user friendly for residents of all ages. The
department will conduct an assessment of all boards and committees for seniors to
evaluate efficiencies, enrich senior health and wellness program and increase
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.328.2100
TTY 847.448 8064
www.cityofevanston.org
-14 -
participation in the various city programs. The department will enhance community
participation by offering enrichment programs geared specifically to middle and
elementary school students at the Robert Crown Center and Fleetwood-Jourdain Center
on a periodic, after-school basis, collaborate with the Library staff to conduct reading
programs, create a home-school science curriculum, develop new programs that will
utilize all aspects of nature at the Ecology Center, Ladd Arboretum, Lovelace Park,
Lighthouse Landing, Fog Houses and the canal, and increase the number of residents
participating in Ecology Center programming and through mobile workshops.
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: Continue to work with City Council members, the City Manager,Library
Director, and Library Board to develop partnerships with schools, community
organizations, businesses; continue to implement goals and objectives of strategic plan;
continue to participate in EDGE initiative, expand summer reading program, develop
significant new revenue sources through grants and fundraising and make investments
in diverse and balanced collections.
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 majority of
the sectors which trickled down to local economy in terms of some of the major
revenues reporting moderate to huge increase compared to the FY 2012.Most of the
economically sensitive revenues such as Sales Tax, Use Tax, Income Tax and Real
Estate Transfer Tax revenues were higher than budgeted revenues.Besides these,
Building Permits, Parking Tax, Athletic Tax revenues were also higher than budgeted
revenues. But,Electric Utility Tax, Gas Utility Tax, Telecommunication Tax, Liquor Tax
and local Motor Fuel Tax were lower than budgeted revenues. The City’s FY2014
budget reflects the positive economic trends in major revenues.
2100 Ridge Avenue
Evanston, Illinois 60201-2798
T 847.328.2100
TTY 847.448 8064
www.cityofevanston.org
reflects the positive economic trends in major revenues.
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, 2013. 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.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
In addition, the City also received the GFOA's Award for Distinguished Budget
Presentation for its annual 2014 budget. In order to qualify for the Distinguished Budget
Presentation Award, the government's budget document was judged to be proficient in
several categories, including policy documentation, financial planning, and organization.
We acknowledge the contributions and excellent work of David Meimers, Accounting
Manager/Controller, and accountants Raye Janousek, Rom Chmara and Andy Villamin
in preparing the financial statements. Appreciation is also extended to all other
Administrative Services Department and City Staff who contributed to the preparation of
this report. We also express gratitude to the Mayor's Office and Members of City
Council for their interest and support in planning and conducting the City's financial
affairs.
Respectfully submitted,
0k~~
City Manager
Martin Lyons ~
Assistant City Manager/Treasurer
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Evanston
Illinois
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2013
Executive Director/CEO
rf
- 17 -
FINANCIAL SECTION
- 18 -
INDEPENDENT AUDITORS' REPORT
-19 -
Baker Tilly Virchow Krause, LLP
1301 W 22nd St, Ste 400
Oak Brook, IL 60523-3389
tel 630 990 3131
fax 630 990 0039
bakertilly.com
INDEPENDENT AUDITORS' REPORT
To the Honorable Elizabeth B. Tisdahl, Mayor and
Members of the City Council
City of Evanston
Evanston, Illinois
Report on the Financial Statements
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, as of and for the year ended December 31, 2014, and the related
notes to the financial statements, which collectively comprise the City of Evanston'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.
Auditors' 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 reasonable assurance
about whether the financial statements are free from 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 auditors' 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 over financial reporting relevant to the City of Evanston'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
of Evanston'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.
To the Honorable Elizabeth B. Tisdahl, Mayor and
Members of the City Council
City of Evanston
-20 -
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, 2014 and the respective changes in financial position and, where applicable, cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1, the City of Evanston adopted the provisions of GASB Statement No. 67, Financial
Reporting for Pension Plans -an amendment of GASB Statement No. 25,effective January 1, 2014. Our opinions
are 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 required supplementary
information as listed in the table of contents be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. W e 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.
Supplementary Information
Our audit for the year ended December 31, 2014 was conducted for the purpose of forming opinions on the
financial statements that collectively comprise the City of Evanston's basic financial statements. The combining
and individual fund statements and schedules for the year ended December 31, 2014 as listed in the table of
contents are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates 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 for the year ended
December 31, 2014, and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual fund statements
and schedules are fairly stated in all material respects, in relation to the basic financial statements as a whole for
the year ended December 31, 2014.
To the Honorable Elizabeth B. Tisdahl, Mayor and
Members of the City Council
City of Evanston
We also previously audited, in accordance with auditing standards generally accepted in the United States of
America, the basic financial statements of the City of Evanston as of and for the year ended December 31, 2013
(not presented herein), and have issued our report thereon dated July 2, 2014, which contained unmodified
opinions on the respective financial statements of the the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information. The
combining and individual fund statements and schedules for the year ended December 31, 2013 is presented for
purposes of additional analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other
records used to prepare the 2013 financial statements. The information has been subjected to the auditing
procedures applied in the audit of the 2013 basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare those financial statements or to those financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual fund statements and schedules is fairly stated in all material respects in relation to the
basic financial statements as a whole for the year ended December 31, 2013.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Evanston's basic financial statements. The introductory section and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information has
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 it.
other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have issued our report dated July 23, 2015 on our
consideration of the City of Evanston's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City of Evanston's internal control over financial reporting and compliance.
~ !~ V.J...Ii'~ Iff
July 23, 2015
-21 -
REQUIRED SUPPLEMENTARY INFORMATION
- 22 -
-23 -
(Unaudited)
MANAGEMENT’S
DISCUSSION AND ANALYSIS
DECEMBER 31, 2014
The City of Evanston (the City) Discussion and Analysis is designed to (1) assist the reader in focusing
on significant financial issues, (2) provide an overview of the City's financial activity, (3) identify
changes in the City's financial position (its ability to address the next and subsequent year challenges), (4)
identify any material deviations from the financial plan (the approved budget), and (5) identify individual
fund issues or concerns. We encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal, which can be found on
page 4 of this report.
FINANCIAL HIGHLIGHTS
A. The City's net position increased by $7,710,040 or 2.4% from the prior fiscal year reported. The
governmental net position increased by $2,555,521 or 4.4% from prior period and the business-type
activities net position increased by $5,154,519 or 1.9% from prior period.
B.The governmental activities revenue decreased by $218,425 or 0.2% from the prior period. The
expenses increased by $5,811,938 or 4.8%.
C.The business-type activities revenue decreased by $1,238,921 or 3.2%. The expenses increased by
$38,967 or 0.1% from the prior period.
D.The total cost of all City programs increased by $5,850,905 or 3.8%.
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 provi ded 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.
-24 -
(Unaudited)
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 32 -35 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
-25 -
(Unaudited)
financing requirements of governmental programs and the commitment of spendable resources for the
near-term.
Since the government-wide focus includes the long-term view, comparisons between these two
perspectives may provide insight into the long-term impact of the short-term financing decision. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to assist in understanding the differences between these
two perspectives.
Budgetary comparison statements 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 36 -37 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 39 -43 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 44 -45 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
46 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
-26 -
(Unaudited)
component unit for receivables, payables, transfers, and payments within the reporting entity. Required
supplementary information can be found on pages 110 -119 of this report.
Major funds and component units are reported in the basic financial statements, as discussed. Combining
statements, individual statements and schedules for non-major and internal service funds are presented in
a subsequent section of this report beginning on page 120.Additional information on capital assets and
long-term debt can be found on page 70 and 81 respectively.
Financial Analysis of the City as a Whole
The City's combined net position increased by $7,710,040 from $323,526,693 to $331,236,733.
STATEMENT OF POSITION
The City’s increase in Net Position principally comes from the reduction of Long-Term Liabilities of
$8,527,507.
The City's total revenues decreased by $1,457,346 or 0.9%. The City's total expenses for all programs
increased by $5,850,905 or 3.8%. Business-type activity revenues decreased by $1,238,921 in the current
fiscal period mainly due to a decrease in charges for services. Business-type activity expenses increased
by $38,967,while Governmental activity expense experienced an increase of $5,811,938.
Governmental Funds: The governmental activities experienced an increase of $2,555,521 in the net
position balance.This is primarily due to net revenues of $1,945,655 and a transfer in of $609,866 from
business activities to the government fund.
Business Funds: The business-type activities experienced an increase of $5,154,519 in the net position
balance primarily due to the operating surplus in the Sewer Fund in the amount of $7,170,202.
Governmental A ctivities Bus ines s-type Activities Total Primary Government
2014 2013 2014 2013 2014 2013
109,886,723$ 106,810,289$ 29,651,641$ 31,527,870$ 139,538,364$ 138,338,159$
Capital Assets 161,799,582 164,970,987 335,464,928 335,464,132 497,264,510 500,435,119
Total A ssets 271,686,305 271,781,276 365,116,569 366,992,002 636,802,874 638,773,278
Lo ng-Term Liabilities 160,830,581 162,222,400 91,098,072 98,233,760 251,928,653 260,456,160
Ot her Liabilit ies 9,969,905 10,645,254 3,424,806 3,319,070 13,394,711 13,964,324
Total Liabilities 170,800,486 172,867,654 94,522,878 101,552,830 265,323,364 274,420,484
Deferred Inflows 40,242,777 40,826,101 - - 40,242,777 40,826,101
Net Investment in
Capital Assets 46,633,381 47,213,819 246,381,653 239,243,154 293,015,034 286,456,973
Restricted 25,297,880 24,719,778 649,352 711,672 25,947,232 25,431,450
Un restricted (Deficit)(11,288,219) (13,846,076) 23,562,686 25,484,346 12,274,467 11,638,270
Total Net Position 60,643,042$ 58,087,521$ 270,593,691$ 265,439,172$ 331,236,733$ 323,526,693$
-27 -
(Unaudited)
The following table provides a summary of the City's changes in net position:
STATEMENT OF CHANGES IN NET POSITION
Government al Activit ies Business-ty pe Activit ies T ot al Primary Government
2014 2013 2014 2013 2014 2013
Revenue
Program Revenues:
Charges for services 29,987,632$ 26,331,524$ 37,888,383$ 38,073,814$ 67,876,015$ 64,405,338$
Op erat ing grants and
cont ribut ions 7,151,449 10,102,441 14,557 939,145 7,166,006 11,041,586
Cap it al grants and
cont ribut ions 500,089 2,956,037 - - 500,089 2,956,037
General Revenues:
Sales t axes 17,361,749 16,965,296 - - 17,361,749 16,965,296
Prop erty t axes 48,579,267 46,349,104 - - 48,579,267 46,349,104
Utilit y taxes 7,677,852 7,690,177 - - 7,677,852 7,690,177
Income t axes 7,053,978 7,182,793 - - 7,053,978 7,182,793
Other 11,879,452 12,495,571 - (60,762) 11,879,452 12,434,809
Invest ment income (257,657) 79,293 (156,318) 33,346 (413,975) 112,639
Total Revenue 129,933,811 130,152,236 37,746,622 38,985,543 167,680,433 169,137,779
Expenses
General management and
support 13,811,748 18,892,279 - - 13,811,748 18,892,279
Public safety 58,794,752 57,089,557 - - 58,794,752 57,089,557
Public works 25,824,781 13,782,175 - - 25,824,781 13,782,175
Healt h and human
resources develop ment 3,836,705 3,601,469 - - 3,836,705 3,601,469
Recreat ion and cultural
op port unit ies 12,443,348 16,432,540 - - 12,443,348 16,432,540
Housing and economic
develop ment 9,357,861 11,123,338 - - 9,357,861 11,123,338
Int erest 3,918,961 1,254,860 - - 3,918,961 1,254,860
Wat er - - 11,977,496 11,193,186 11,977,496 11,193,186
Sewer - - 7,293,022 7,648,520 7,293,022 7,648,520
Solid Waste - - 4,855,695 4,732,455 4,855,695 4,732,455
Motor vehicle p arking
sy st em - - 7,856,024 8,369,109 7,856,024 8,369,109
Total Expense 127,988,156 122,176,218 31,982,237 31,943,270 159,970,393 154,119,488
Increase (decrease) in net
position before t ransfers 1,945,655 7,976,018 5,764,385 7,042,273 7,710,040 15,018,291
Transfers 609,866 (2,586,402) (609,866) 2,586,402 - -
Increase/(Decrease) in
Net Position 2,555,521 5,389,616 5,154,519 9,628,675 7,710,040 15,018,291
Net Position - Beginning 58,087,521 52,697,905 265,439,172 255,810,497 323,526,693 308,508,402
Net Position - Ending 60,643,042$ 58,087,521$ 270,593,691$ 265,439,172$ 331,236,733$323,526,693$
-28 -
(Unaudited)
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 $56,269,699 as of December 31, 2014 which includes $26,002,441 restricted,$1,430,263 non-
spendable, $3,540,470 committed, $15,814,034 assigned and $9,482,491 unassigned fund balance.The
restricted fund balance consists of amounts required to be set aside by external authorities.
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 $1,379,985. Excess of expenditures
over revenues in the amount of $6,012,029 was partially offset by inter-fund transfers to the General
Fund. Some of the revenue categories that came in above budget include the Personal Property
Replacement Tax, State Use Tax, Athletic Contest tax, Liquor Tax, and Parking Tax.Conversely, Real
Estate Transfer Tax, Property Tax, Utility Tax and Parking Ticket Fines were lower than budgeted. Many
of the departments spent less than their budget while Police, Fire, Public Works, and Parks and
Recreation were over budget in their expenditures.Overall, the General Fund expenditures were higher
than the 2014 Adopted Budget.
The Capital Improvements Fund accounts for the City's governmental funds capital improvement
program. The program includes improvements to public buildings, paving of city streets, improvement
and development of recreation facilities and other major improvements. The fund balance of the Capital
Improvements Fund increased by $1,870,927 from $6,299,999 to $8,170,926. The primary driver in the
increase in fund balance was remaining proceeds from the issuance of debt in the amount of $8,895,000
offset by expenditures of $7,934,280.
The fund balance of the General Obligation Debt Fund had a nominal increase of $421,096, from
$3,375,691 to $3,796,787.
The Employer Pension Contribution Fund is used to account for the recognition of applicable tax
revenues and employer contributions to the Pension Trust Funds. These contributions represent the City's
pension expense for police and firefighters. This fund continues to be reported as a major fund.
Combined Non-Major Governmental Funds
Combined non-major fund balances totaled $29,319,020,an increase of $1,498,831 from prior period of
$27,820,189. Non-major funds with surpluses for the fiscal year include Motor Fuel,Economic
Development,Neighborhood Improvement, Affordable Housing, Home Fund, Community Development
Block Grant, Southwest TIF,Washington National TIF and Special Assessment Capital Project Fund.
Non-major funds with deficits for the period include Emergency Telephone System, Community
Development Loan, SSD #4,Town, General Assistance, SSD #5, Howard Hartrey TIF,Howard Ridge
TIF and West Evanston TIF. Although each fund varies, the Howard Ridge, Howard Hartrey, and West
Evanston funds all had planned deficits for the purposes of capital improvements and development
activities.
-29 -
(Unaudited)
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 $5,154,519 in the net position. The Sewer Fund reported the highest
increase in the amount of $5,142,936. This increase is mainly due to the operating surplus and reduced
debt service expense.The Solid Waste and Parking Fund added $171,485 and $182,877 respectively to
the net position during the year, offset by a decrease in the Water Fund of $342,779.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 $1,054,601 from $5,012,244 as of
December 31, 2013 to $6,066,845 as of December 31, 2014. Fleet Fund and Equipment Replacement
reported a combined net increase in net position of $708,865. The net deficit in the Insurance Fund
decreased by $345,736 mainly due to reduction of potential claim liabilities.
General Fund Budgetary Highlights
Total budgetary revenues for the General Fund were $82,146,627 while total expenditures were
$89,004,451. Overall General Fund revenue came in slightly lower than budget by $112,799. Total
expenditures in the General Fund were higher than budgeted amounts by $1,318,780. The actual net
deficiency of $6,857,824 was offset by $4,354,704 in net transfers in from other funds.
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, 2014, were
$497,264,510. The governmental funds capital assets had a net decrease of $3,171,405,while business
type capital assets increased by $796. Overall, capital assets decreased by 0.6% for the City as a whole.
The net decrease in governmental funds capital assets were principally due to the provision of deprecation
for the year.Readers desiring more detailed information on capital asset activity should refer to Note 6 in
the Notes to the Financial Statements.
Long-Term Debt
As of December 31, 2014,the City had outstanding total general obligation bonded debt of $146,624,679
of which $29,787,840 was for business type activities to be paid for by the City's Parking, Water, Solid
Waste and Sewer Funds. The City's general obligation debt service principal payments for 2014 totaled
$13,363,190. During the current year, the City issued $12,045,000 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 9 in the Notes to the Financial Statements.
-30 -
(Unaudited)
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
revenues such as Income Tax, Sales Tax, Building Permits and Real Estate Transfer Tax came in higher
than budgeted revenues while Utility Taxes and local Motor Fuel Tax were below budget.
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. Due to the high number of nonprofit organizations which make a large portion of Evanston's
workforce, the City has been somewhat insulated from the previous year’s economic downturn in
employment areas. The City’s equalized assessed value for real property increased by 2% as provided by
the County of Cook Assessor’s Office.
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
Administrative Services Department at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois
60201, Telephone 847-866-2934,or access the website at www.cityofevanston.org.
- 31 -
BASIC FINANCIAL STATEMENTS
- 32 -
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
Component Unit
Governmental Business-type Evanston Public
Activities Activities Total Library
Cash and equivalents 36,772,733$ 24,032,233$ 60,804,966$ 1,578,810$
Investments 363,495 - 363,495 3,451,820
Receivables (net, where applicable,
of allowances for uncollectibles)
Property taxes 46,096,546 - 46,096,546 6,418,643
Accounts - 5,412,140 5,412,140 -
Notes 8,508,612 - 8,508,612 -
Special assessments 425,314 - 425,314 -
Accrued interest - - - 8,741
Other 3,824,952 640,950 4,465,902 -
Due from other governments 7,740,972 - 7,740,972 -
Due from component units 424,983 - 424,983 -
Internal balances 1,968,615 (1,968,615) - -
Inventories 751,148 656,581 1,407,729 -
Restricted assets
Cash and equivalents and investments 384,781 649,352 1,034,133 -
Prepaid items 2,447,074 - 2,447,074 -
Other assets 177,498 229,000 406,498 -
Capital assets
Capital assets not being depreciated 26,062,940 7,467,335 33,530,275 311,380
Capital assets (net of accumulated -
depreciation)135,736,642 327,997,593 463,734,235 12,993,557
Total Assets 271,686,305 365,116,569 636,802,874 24,762,951
As of December 31, 2014
Primary Government
The accompanying notes are an integral part of this statement.
- 33 -
Component Unit
Governmental Business-type Evanston Public
Activities Activities Total Library
Vouchers payable 5,500,250$ 2,989,958$ 8,490,208$ 93,554$
Accrued payroll 293,472 - 293,472 -
Interest payable 704,561 42,955 747,516 -
Other payables 310,816 160 310,976 14,536
Due to other governments 836,621 - 836,621 424,983
Pension contribution payable 2,324,185 - 2,324,185 -
Payable from restricted assets
Interest payable - 391,733 391,733 -
Noncurrent liabilities
Payable from restricted assets - due
within one year - 8,091,654 8,091,654 -
Due within one year 16,101,946 4,262,293 20,364,239 658,360
Due in more than one year 144,728,635 78,744,125 223,472,760 2,275,156
Total Liabilities 170,800,486 94,522,878 265,323,364 3,466,589
Deferred Inflows of Resources - Property tax 40,242,777 - 40,242,777 5,531,644
Net Investment in Capital Assets 46,633,381 246,381,653 293,015,034 13,304,937
Restricted -
Highway maintenance 1,780,031 - 1,780,031 -
Emergency telephone system 908,353 - 908,353 -
HUD approved projects 7,115,642 - 7,115,642 -
Neighborhood improvements 2,716,835 - 2,716,835 -
Debt service 12,209,139 - 12,209,139 -
General assistance 183,099 - 183,099 -
Capital improvements - 400,000 400,000 -
Impaired investment 384,781 249,352 634,133 -
Unrestricted (deficit)(11,288,219) 23,562,686 12,274,467 2,459,781
Total Net Position 60,643,042$ 270,593,691$ 331,236,733$ 15,764,718$
Primary Government
- 34 -
CITY OF EVANSTON, ILLINOIS
Statement of Activities
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Governmental activities:
General management and support 13,811,748$ 9,374,387$ 1,962$ 107$
Public safety 58,794,752 1,686,319 27,580 99
Public works 25,824,781 377,004 2,260,211 42
Health and human resource development 3,836,705 1,453,503 1,034,144 -
Recreation and cultural opportunities 12,443,348 5,360,408 - -
Housing and economic development 9,357,861 11,736,011 3,827,552 499,841
Interest 3,918,961 - - -
Total governmental activities 127,988,156 29,987,632 7,151,449 500,089
Business-type activities:
Water 11,977,496 15,051,732 14,557 -
Sewer 7,293,022 12,785,065 - -
Solid Waste 4,855,695 3,971,213 - -
Motor vehicle parking system 7,856,024 6,080,373 - -
Total business-type activities 31,982,237 37,888,383 14,557 -
Total primary government activities 159,970,393$ 67,876,015$ 7,166,006$ 500,089$
Evanston Public Library:
General management and support 6,140,751 830,326 - -
Interest 748,521 - - -
Total Evanston Public Library 6,889,272$ 830,326$ -$ -$
Total 166,859,665$ 68,706,341$ 7,166,006$ 500,089$
General revenues:
Property tax
Other taxes
Personal property replacement tax
Sales and home rule tax
Income tax
Utility tax
Liquor Tax
Parking Tax
Real Estate Transfer Tax
Miscellaneous
Investment income
Transfers
Total general revenues and transfers
Change in Net Position
Net Position - beginning
Net Position - ending
The accompanying notes are an integral part of this statement.
For the Fiscal Year ended December 31, 2014
- 35 -
Total
Governmental Business-type Primary Evanston Public
Activities Activities Government Library
(4,435,292)$ -$ (4,435,292)$ -$
(57,080,754) - (57,080,754) -
(23,187,524) - (23,187,524) -
(1,349,058) - (1,349,058) -
(7,082,940) - (7,082,940) -
6,705,543 - 6,705,543 -
(3,918,961) - (3,918,961) -
(90,348,986) - (90,348,986) -
- 3,088,793 3,088,793 -
- 5,492,043 5,492,043 -
- (884,482) (884,482) -
- (1,775,651) (1,775,651) -
- 5,920,703 5,920,703 -
(90,348,986)$ 5,920,703$ (84,428,283)$ -$
- - - (5,310,425)
- - - (748,521)
-$ -$ -$ (6,058,946)$
(90,348,986) 5,920,703 (84,428,283) (6,058,946)
48,579,267 - 48,579,267 6,198,863
2,025,374 - 2,025,374 -
1,415,614 - 1,415,614 -
17,361,749 - 17,361,749 -
7,053,978 - 7,053,978 -
7,677,852 - 7,677,852 -
2,665,447 - 2,665,447 -
2,565,189 - 2,565,189 -
2,543,056 - 2,543,056 -
664,772 - 664,772 919
(257,657) (156,318) (413,975) 353,383
609,866 (609,866) - -
92,904,507 (766,184) 92,138,323 6,553,165
2,555,521 5,154,519 7,710,040 494,219
58,087,521 265,439,172 323,526,693 15,270,499
60,643,042$ 270,593,691$ 331,236,733$ 15,764,718$
Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of this statement.- 36 -
CITY OF EVANSTON, ILLINOIS
Governmental Funds
Balance Sheet
General Employer Nonmajor Total
Capital Obligation Pension Governmental Governmental
General Improvements Debt Contribution Funds Funds
Assets
Cash and equivalents 5,070,897$ 10,195,921$ 449,299$ -$ 19,806,597$ 35,522,714$
Restricted Cash - 219,021 14,513 - 151,247 384,781
Investments - - - - 363,495 363,495
Receivables
Property taxes (net of allowance) 11,387,119 - 11,049,841 14,441,782 9,217,804 46,096,546
Notes (net of allowance)- - - - 8,508,612 8,508,612
Special assessments - - - - 425,314 425,314
Other 2,865,464 - - - 933,932 3,799,396
Prepaid items - - 1,430,263 - - 1,430,263
Due from other governments 6,876,727 330,543 - - 533,702 7,740,972
Due from component units 411,750 - - - 9,900 421,650
Due from other funds 3,868,070 357,945 149,924 - 208,707 4,584,646
Other assets 177,498 - - - - 177,498
Total Assets 30,657,525$ 11,103,430$ 13,093,840$ 14,441,782$ 40,159,310$ 109,455,887$
Liabilities
Vouchers payable 2,245,334$ 2,305,991$ 250$ -$ 440,713$ 4,992,288$
Accrued payroll 293,472 - - - - 293,472
Compensated absences payable 302,311 - - - - 302,311
Other 310,816 - - - - 310,816
Due to other governments - 626,513 - - 210,108 836,621
Due to other funds 2,882,454 - - - 1,001,264 3,883,718
Pension contribution payable 110,069 - - 2,214,116 - 2,324,185
Total Liabilities 6,144,456 2,932,504 250 2,214,116 1,652,085 12,943,411
Deferred Inflows of Resources - Property
tax 9,530,103 - 9,296,803 12,227,666 9,188,205 40,242,777
Fund Balances
Nonspendable - Prepaid items - - 1,430,263 - - 1,430,263
Restricted
Highway maintenance - - - - 1,780,031 1,780,031
Emergency telephone system - - - - 908,353 908,353
HUD approved projects - - - - 7,115,642 7,115,642
Neighborhood improvements - - - - 2,716,835 2,716,835
Debt service - - 2,352,011 - 10,561,689 12,913,700
Township - - - - 183,099 183,099
Impaired investment - 219,021 14,513 - 151,247 384,781
Committed - Economic Development - - - - 3,540,470 3,540,470
Assigned 5,347,110 7,951,905 - - 2,515,019 15,814,034
Unassigned 9,635,856 - - - (153,365) 9,482,491
Total Fund Balances 14,982,966 8,170,926 3,796,787 - 29,319,020 56,269,699
Total Liabilities, Deferred Inflows
and Fund Balances 30,657,525$ 11,103,430$ 13,093,840$ 14,441,782$ 40,159,310$
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 funds.154,413,652$
Long-term liabilities, including bonds payable, compensated absences payable, and pension
contributions payable, are not due and payable in the current period and therefore, are not
reported in the governmental funds. (See Note 2.A)(153,555,644)
OPEB liability payable is not due and payable in the current period and therefore, is not
reported in the governmental funds.(1,846,949)
Interest accrual from last interest payment to December 31, 2014.(704,561)
The net position of the internal service fund is included in the governmental activities in the
statement of net position.6,066,845
Net Position of governmental activities 60,643,042$
As of December 31, 2014
The accompanying notes are an integral part of this statement.
- 37 -
CITY OF EVANSTON, ILLINOIS
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year ended December 31, 2014
General Employer Nonmajor Total
Capital Obligation Pension Governmental Governmental
General Improvements Debt Contribution Funds Funds
Revenues
Taxes 38,222,153$ -$ 12,282,189$ 15,171,893$ 12,256,554$ 77,932,789$
Licenses and permits 14,503,168 - - - - 14,503,168
Special assessments - - - - 167,382 167,382
Intergovernmental 17,964,980 487,563 - - 5,847,846 24,300,389
Charges for services 7,792,469 - - - - 7,792,469
Fines and forfeits 3,357,965 - - - - 3,357,965
Investment income 13,037 20,380 11,934 - 43,836 89,187
Change in unrealized depreciation
on investments - (190,365) (12,614) - (131,458) (334,437)
Miscellaneous 1,138,650 613,108 - - 373,022 2,124,780
Total Revenues 82,992,422 930,686 12,281,509 15,171,893 18,557,182 129,933,692
Expenditures
Current
General management and support 11,642,286 23,714 36,250 - 1,611,795 13,314,045
Public safety 43,013,173 112,241 - 15,171,893 1,127,877 59,425,184
Public works 17,398,563 1,475,485 - - 947,567 19,821,615
Health and human resource development 3,836,705 - - - - 3,836,705
Recreation and cultural opportunities 10,486,537 37,174 - - - 10,523,711
Housing and economic development 2,627,187 - - - 6,721,322 9,348,509
Debt service
Principal - - 8,519,672 - 1,520,000 10,039,672
Interest - - 4,247,753 - 163,165 4,410,918
Fiscal agent fees - - 42,870 - - 42,870
Capital outlay - 6,285,666 - - - 6,285,666
Total Expenditures 89,004,451 7,934,280 12,846,545 15,171,893 12,091,726 137,048,895
Excess (Deficiency) of Revenues
Over (Under) Expenditures (6,012,029) (7,003,594) (565,036) - 6,465,456 (7,115,203)
Other Financing Sources (Uses)
Transfers in 7,233,511 936,500 986,132 - 45,500 9,201,643
Transfers out (2,601,467) (1,547,810) - - (5,515,310) (9,664,587)
Bond Proceeds - 8,895,000 - - 450,000 9,345,000
Bond Premiums - 651,026 - - 53,185 704,211
Bond Issuance Costs - (60,195) - - - (60,195)
Total Other Financing Sources (Uses)4,632,044 8,874,521 986,132 - (4,966,625) 9,526,072
Net Change in Fund Balances (1,379,985) 1,870,927 421,096 - 1,498,831 2,410,869
Fund Balances -Beginning 16,362,951 6,299,999 3,375,691 - 27,820,189 53,858,830
Fund Balances - Ending 14,982,966$ 8,170,926$ 3,796,787$ -$ 29,319,020$ 56,269,699$
The accompanying notes are an integral part of this statement.
- 38 -
CITY OF EVANSTON, ILLINOIS
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 2,410,869$
(2,517,977)
13,150,681
(10,049,211)
(1,322,050)
(106,388)
(66,004)
Internal service funds are reported separately in the fund financial statements.1,054,601
Change in Net Position of governmental activities 2,554,521$
The repayment of the principal of long-term debt payable consume the current financial resources of
governmental funds. These transactions, however, have no effect on net position. (See Note 2.B)
Some expenses reported in the statement of activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in governmental funds. (See Note 2.B)
Change in interest accrual for the twelve months ended December 31, 2014.
OPEB benefit expense reported in the statement of activities does not require the use of current financial
resources and, therefore, is not reported as expenditures in governmental funds.
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
For the Fiscal Year ended December 31, 2014
Governmental funds report capital outlays as expenditures.However,in the statement of activities, the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense.This is
the amount by which capital outlays exceeded depreciation in the current period.Gain or loss on assets
removed are also reported in the statement of activities. (See Note 2.B)
Issuance of Bonds provides current financial resources to governmental funds.This transaction has no
effect on net position.Governmental funds also report the effect of bonds premiums,discounts and similar
items when debt is first issued. (See Note 2.B)
The accompanying notes are an integral part of this statement.- 39 -
CITY OF EVANSTON, ILLINOIS
Proprietary Funds
Statement of Net Position
Governmental
Activities-
Motor Vehicle Internal
Parking Service
Water Sewer Solid Waste System Total Funds
Current Assets
Cash and equivalents 8,637,219$ 1,987,111$ 43,729$ 13,364,174$ 24,032,233$ 1,250,019$
Restricted cash and equivalents
and investments 500,736 - - 148,616 649,352 -
Receivables
Accounts - billed 1,552,614 220,644 138,469 - 1,911,727 -
Accounts - unbilled 961,108 1,966,016 573,289 - 3,500,413 -
Other - - - 640,950 640,950 25,556
Due from component units - - - - - 3,333
Due from other funds 560,147 1,888,553 677,899 - 3,126,599 1,696,786
Inventories 524,534 132,047 - - 656,581 751,148
Prepaid Expenses - - - - - 1,016,811
Total Current Assets 12,736,358 6,194,371 1,433,386 14,153,740 34,517,855 4,743,653
Noncurrent Assets
Capital Assets
Capital assets not being depreciated 3,018,488 - - 4,448,847 7,467,335 -
Capital assets being depreciated 91,259,929 251,256,351 - 84,265,181 426,781,461 22,247,159
Less accumulated depreciation (22,295,613) (50,949,007) - (25,539,248) (98,783,868) (14,861,229)
Total Capital Assets 71,982,804 200,307,344 - 63,174,780 335,464,928 7,385,930
Other Assets
Notes Receivable - - - 229,000 229,000 -
Total Noncurrent Assets 71,982,804 200,307,344 - 63,403,780 335,693,928 7,385,930
Total Assets 84,719,162 206,501,715 1,433,386 77,557,520 370,211,783 12,129,583
As of December 31, 2014
Business-type Activities- Enterprise Funds
Assets
- 40 -
Governmental
Activities-
Motor Vehicle Internal
Parking Service
Water Sewer Solid Waste System Total Funds
Current Liabilities
Vouchers payable 2,216,875$ 329,501$ 247,537$ 196,045$ 2,989,958$ 507,962$
Interest payable - - 220 42,735 42,955 -
Interest payable - restricted 61,803 329,930 - - 391,733 -
Miscellaneous Liability - - 160 - 160 -
Compensated absences payable 200,852 46,194 12,179 42,966 302,191 61,352
General obligation bonds payable 538,402 - 16,878 3,404,822 3,960,102 -
General obligation bonds payable -
restricted - 359,844 - - 359,844 -
Claims payable - - - - - 1,971,381
Notes payable - IEPA - restricted 67,505 7,664,305 - - 7,731,810 -
Due to other funds 1,300,708 834,002 2,088,653 871,851 5,095,214 429,099
Total Current Liabilities 4,386,145 9,563,776 2,365,627 4,558,419 20,873,967 2,969,794
Long-Term Liabilities
Notes payable - IEPA 1,012,572 49,668,277 - - 50,680,849 -
General obligation bonds payable 12,039,537 3,235,903 79,637 11,092,108 26,447,185 -
OPEB liability payable 188,737 54,477 24,371 49,117 316,702 62,105
Compensated absences payable 426,812 98,163 25,881 91,303 642,159 59,254
IMRF Pension contributions payable 385,728 96,167 49,945 125,390 657,230 -
Claims payable - - - - - 2,971,585
Total Long-Term Liabilities 14,053,386 53,152,987 179,834 11,357,918 78,744,125 3,092,944
Total Liabilities 18,439,531 62,716,763 2,545,461 15,916,337 99,618,092 6,062,738
Net Investment in Capital Assets 58,324,788 139,379,015 - 48,677,850 246,381,653 7,385,930
Restricted for capital improvements 400,000 - - - 400,000 -
Restricted for impaired investment 100,736 - - 148,616 249,352 -
Unrestricted (deficit)7,454,107 4,405,937 (1,112,075) 12,814,717 23,562,686 (1,319,085)
Total Net Position (deficit)66,279,631$ 143,784,952$ (1,112,075)$ 61,641,183$ 270,593,691$ 6,066,845$
Liabilities
Net Position
Business-type Activities- Enterprise Funds
The accompanying notes are an integral part of this statement.- 41 -
CITY OF EVANSTON, ILLINOIS
Proprietary Funds
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Fiscal Year ended December 31, 2014
Governmental
Activities-
Motor Vehicle Internal
Parking Service
Water Sewer Solid Waste System Total Funds
Operating Revenues
Charges for services 14,379,362$ 12,766,915$ 3,971,213$ 6,074,095$ 37,191,585$ 22,653,710$
Miscellaneous 672,370 18,150 - 6,278 696,798 52,910
Total Operating Revenues 15,051,732 12,785,065 3,971,213 6,080,373 37,888,383 22,706,620
Operating Expenses Excluding Depreciation
Administration 1,099,395 1,950,252 934,080 1,706,906 5,690,633 -
Operations 6,839,443 296,688 3,890,341 2,765,236 13,791,708 21,294,742
Total Operating Expenses
Excluding Depreciation 7,938,838 2,246,940 4,824,421 4,472,142 19,482,341 21,294,742
Operating Income (Loss) Before Depreciation 7,112,894 10,538,125 (853,208) 1,608,231 18,406,042 1,411,878
Depreciation 1,569,014 3,367,923 - 2,785,161 7,722,098 1,476,741
Operating Income (Loss)5,543,880 7,170,202 (853,208) (1,176,930) 10,683,944 (64,863)
Nonoperating Revenues (Expenses)
Investment income 25,542 3,221 - 31,645 60,408 119
(87,555) - - (129,171) (216,726) -
Interest expense (376,677) (1,735,371) (2,912) (598,721) (2,713,681) -
Bond expenses and amortization of discount 1,624 - (28,362) - (26,738) -
Amortization of bond premium 1,129 57,212 - - 58,341 -
Other expenses (1,323,071) - - - (1,323,071) -
Grants 14,557 - - - 14,557 -
Gain (loss) on disposition of assets (772,649) - - - (772,649) 46,535
Total Nonoperating Revenues (Expenses)(2,517,100) (1,674,938) (31,274) (696,247) (4,919,559) 46,654
Income (Loss) before transfers and contributions 3,026,780 5,495,264 (884,482) (1,873,177) 5,764,385 (18,209)
Transfers In (Out)
Debt Service - (207,284) - - (207,284) -
Washington National Tax Increment District - - - 2,925,296 2,925,296 -
General (3,369,559) (145,044) 1,055,967 (869,242) (3,327,878) -
Capital Improvements - - - - - 1,072,810
Total Transfers In (Out)(3,369,559) (352,328) 1,055,967 2,056,054 (609,866) 1,072,810
Change in Net Position (342,779) 5,142,936 171,485 182,877 5,154,519 1,054,601
Total Net Position (Deficit) - Beginning 66,622,410 138,642,016 (1,283,560) 61,458,306 265,439,172 5,012,244
Total Net Position (Deficit)- Ending 66,279,631$ 143,784,952$ (1,112,075)$ 61,641,183$ 270,593,691$ 6,066,845$
Business-type Activities- Enterprise Funds
on investments
Change in unrealized depreciation
The accompanying notes are an integral part of this statement.- 42 -Continued
CITY OF EVANSTON, ILLINOIS
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year ended December 31, 2014
Governmental
Activities -
Motor Vehicle Internal
Parking Service
Water Sewer Solid Waste System Totals Funds
Cash Flows from Operating Activities
Receipts from customers and users 15,081,774$ 12,785,065$ 3,971,213$ 5,464,207$ 37,302,259$ 22,705,484$
Receipts from / (Payments for)
interfund services provided 914,457 (59,047) 3,263 817,070 1,675,743 479,596
Payments to suppliers (1,905,924) (218,800) (4,029,042) (4,028,448) (10,182,214) (5,182,084)
Payments to employees (4,802,060) (884,622) (928,797) (1,356,366) (7,971,845) (3,739,815)
Payments for insurance premiums - - - - - (13,779,545)
Net Cash Provided by (used for) Operating Activities 9,288,247 11,622,596 (983,363) 896,463 20,823,943 483,636
Cash Flows from Noncapital Financing Activities
Transfers In (Out)
Debt Service - (207,284) - - (207,284) -
Washington Tax Increment District - - - 2,925,296 2,925,296 -
General Fund (3,369,559) (145,044) 1,055,967 (869,242) (3,327,878) -
Net Cash from Noncapital Financing Activities (3,369,559) (352,328) 1,055,967 2,056,054 (609,866) -
Cash Flows from Capital and Related Financing Activities
Sale of capital assets - - - - - 46,535
Acquisition and construction of capital assets (6,725,539) (2,102,455) - (990,620) (9,818,614) (822,313)
Principal paid on revenue bonds (305,000) - - - (305,000) -
Proceeds from general obligation bonds 2,700,000 - - - 2,700,000 -
Principal paid on general obligation bonds (445,648) (341,061) (15,908) (2,520,901) (3,323,518) -
Interest paid on general obligation bonds (176,241) (173,211) (2,912) (598,721) (951,085) -
Bond expenses - (971) (28,362) (96,004) (125,337) -
Proceeds from IEPA loans - 1,629,514 - - 1,629,514 -
Principal paid on IEPA loans (67,505) (7,807,732) - - (7,875,237) -
Interest paid on IEPA loans - (1,588,251) - - (1,588,251) -
Transfer In - - - - - 1,072,810
Miscellaneous 16,180 - - - 16,180 -
Net Cash Provided by (Used for)
Capital and Related Financing Acuities (5,003,753) (10,384,167) (47,182) (4,206,246) (19,641,348) 297,032
Cash Flows from Investing Activities
Loss on investments (87,555) - - - (87,555) -
Interest income 25,542 3,221 - 31,645 60,408 119
Net Cash Provided by Investing Activities (62,013) 3,221 - 31,645 (27,147) 119
Net Increase (Decrease) in Cash and Cash Equivalents 852,922 889,322 25,422 (1,222,084) 545,582 780,787
Cash and Equivalents
Beginning 8,285,033 1,097,789 18,307 14,734,874 24,136,003 469,232
Ending 9,137,955$ 1,987,111$ 43,729$ 13,512,790$ 24,681,585$ 1,250,019$
Reconciliation
Cash and equivalents
Current Cash 8,637,219$ 1,987,111$ 43,729$ 13,364,174$ 24,032,233$ 1,250,019$
Restricted Cash 500,736 - - 148,616 649,352 -
9,137,955$ 1,987,111$ 43,729$ 13,512,790$ 24,681,585$ 1,250,019$
Business-type Activities - Enterprise Funds
- 43 -
Concluded
CITY OF EVANSTON, ILLINOIS
Proprietary Funds
Statement of Cash Flows - Continued
For the Fiscal Year ended December 31, 2014
Governmental
Activities -
Motor Vehicle Internal
Parking Service
Water Sewer Solid Waste System Totals Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities
Operating Income (Loss)5,543,880$ 7,170,202$ (853,208)$ (1,176,930)$ 10,683,944$ (64,863)$
Adjustments to reconcile operating income to
net cash provided by (used for) operating activities
Depreciation 1,569,014 3,367,923 - 2,785,161 7,722,098 1,476,741
Changes in assets and liabilities
Increase/decrease in A/R miscellaneous 30,042 971,388 (57,277) - 944,153 (1,136)
Notes receivable - - - 5,000 5,000 -
Other receivables - - - (621,166) (621,166) -
Prepaid expenses 311,672 - - - 311,672 (981,865)
Interfund receivable 598,605 (861,902) - - (263,297) 219,231
Inventories 115,033 (8,623) - - 106,410 (11,989)
Compensated absences (55,583) 23,805 (2,686) 2,907 (31,557) 23,876
Claims payable - - - - - 151,506
Interfund payable 315,852 802,855 3,263 817,075 1,939,045 260,365
OPEB liability payable 28,135 6,478 6,102 3,828 44,543 10,190
IMET estimated uncollectible - - - (129,171) (129,171) -
IMRF contributions payable 2,865 719 540 807 4,931 -
Vouchers payable 828,732 149,751 (80,072) (782,813) 115,598 -
Interest payable - - (25) (8,235) (8,260) -
Accounts payable - - - - - (598,420)
Net Cash Provided by (used for) Operating Activities 9,288,247$ 11,622,596$ (983,363)$ 896,463$ 20,823,943$ 483,636$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement.
- 44 -
CITY OF EVANSTON, ILLINOIS
Fiduciary Funds
Statement of Net Position
Pension
Trust Funds
Assets
Cash and short-term investments 4,351,869$
Receivables
Accrued interest 533,138
Contribution receivable - Due from city funds 2,324,185
Total Receivables 2,857,323
Investments, at fair value
U.S. Government and agency obligations 38,006,678
Corporate bonds 22,692,396
Common stock 24,716,359
Mutual funds 75,309,615
Total Investments 160,725,048
Total Assets 167,934,240
Liabilities
Vouchers payable 4,986
Net Position held in trust 167,929,254$
As of December 31, 2014
The accompanying notes are an integral part of this statement.
- 45 -
CITY OF EVANSTON, ILLINOIS
Fiduciary Funds - Pension Trust Funds
Statement of Changes in Plan Net Position
Pension
Trust Funds
Additions
Contributions
Employer 15,171,893$
Plan members 2,484,927
Total contributions 17,656,820
Investment income
Net appreciation in fair value of investments 8,869,210
Investment income 3,840,801
Total investment income 12,710,011
Less investment expense 487,445
Net investment income 12,222,566
Total additions 29,879,386
Deductions
Benefits 17,503,813
Refunds of contributions 114,915
Administrative expense 119,488
Total deductions 17,738,216
Net increase 12,141,170
Net Position held in trust for pension benefits
Beginning 155,788,084
Ending 167,929,254$
For the Fiscal Year ended December 31, 2014
- 46 -
CITY OF EVANSTON, ILLINOIS
Index for Notes to the Financial Statements
Page
Note 1. Summary of Significant Accounting Policies
A.Reporting Entity 49
B.Government-wide and Fund Financial Statements 50
C.Fund Accounting 51
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation 51
E.Cash and Equivalents 54
F.Investments 54
G.Police Pension Fund Investments 54
H.Fire Pension Fund Investments 55
I.Inventories & Prepaid Items 56
J.Capital Assets 56
K.Compensated Absences 57
L.Long-Term Obligations 57
M.Self-Insurance 57
N.Deferred Inflows of Resources 57
O.Property Taxes 58
P.Fund Equity 59
Q.Interfund Transactions 60
R.Use of Estimates 60
S.Effect of New Accounting Standards on Current Period Financial Statements 60
T.Conduit Debt 60
Note 2. Reconciliation of Government-wide and Fund Financial Statements
A.
61
B.
61
Note 3. Stewardship, Compliance, and Accountability
A.Budgetary Information 63
B.Deficit Fund Equity 64
Note 4.Deposits with Financial Institutions and Investments
A.Types of Accounts and Securities 65
B.Pooling of Cash and Investments 65
C.Types of Investments 66
D.Deposits 68
E.Reconciliation of Unrestricted and Restricted Cash and Investments 68
Explanation of Certain Differences between the Governmental Fund Balance
Sheet and the Government-wide Statement of Net Assets
Explanation of Certain Differences between the Governmental Fund Statement
of Revenues,Expenditures,and Changes in Fund Balances and the Government-
wide Statement of Activities
- 47 -
CITY OF EVANSTON, ILLINOIS
Index for Notes to the Financial Statements
Page
(continued from previous page)
Note 5.Receivables
A.Summary of Receivables 69
B.Notes Receivable – Special Revenue Funds 69
Note 6.Capital Assets
A.Capital Asset Activity 70
B.Construction Commitments 72
Note 7.Interfunds
A.Interfund Accounts 73
B.Interfund Transfers 78
Note 8.Operating Leases 80
Note 9.Long-Term Debt
A.Changes in Long-Term Debt 81
B.General Obligation Bonds Payable 83
C.Special Service District Bonds Payable 84
D.Notes Payable – IEPA Loans 85
E.Short term Loan with First Bank & Trust, Evanston 85
F.Post Employment benefits other than Pensions (Defined Benefit Plan)86
Note 10.Fund Equity
A.Restricted Net Position - Fiduciary Funds 88
B.Assigned Fund Balances 88
Note 11.Individual Fund Activities
A.General Obligation Debt Service Fund 89
B.Water Fund 89
C.Special Service District No. 4 89
Note 12.Risk Management – Claims and Judgments 90
- 48 -
CITY OF EVANSTON, ILLINOIS
Index for Notes to the Financial Statements
Page
(continued from previous page)
Note 13.Contingencies 91
Note 14.Joint Ventures
A.Solid Waste Agency of Northern Cook County 91
B.Evanston Housing Corporation 93
Note 15.Deferred Compensation Plan 94
Note 16.Defined Benefit Pension Plans
Illinois Municipal Retirement Fund
A.Plan Description 95
B.Funding Status and Progress 96
C.Annual Pension Cost 96
Police and Firefighters' Pension Plans
D.Plan Descriptions 98
E.Concentration of Investments 98
F.Funding Status and Progress 98
G.Police Pension Plan Description 99
H.Firefighters' Pension Plan Description 100
I.Summary of Significant Accounting Policies 101
J.Net Pension Obligation (Asset)101
K.Actuarial Assumptions - Annual Required Contributions 102
L.Five-Year Trend Information - Pension Trust Funds 102
M.Net Pension Liability 103
N.Actuarial Assumptions - Total Pension Liability 103
O.Discount Rate 104
P.Discount Rate Sensitivity 104
Q.Pensions - Detailed Statement of Net Position 105
R.Pensions - Detailed Statement of Changes in Net Position 106
Note 17.Evanston Library Component Unit
A.Types of Accounts and Securities 107
B.Reconciliation of Cash and Investments 108
C.Summary of Receivables 108
D.Capital Assets Activity 108
E.Long-term Debt 109
- 49 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant of the City and Library accounting policies are described below.
A.Reporting Entity
Blended Component Unit:
The financial statements of the City of Evanston (City)and Evanston Public Library (Library)have been prepared in
conformity with accounting principles generally accepted in the United States of America as applied to governmental units
(hereinafter referred to as "Generally Accepted Accounting Principles"(GAAP).The Governmental Accounting
Standards Board (GASB)is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
The Town of the City of Evanston,Illinois (Township)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
Evanston Township. Pursuant to 60 ILCS 1/27-15 and 1/27-20,effective 12:00 am 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 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.
- 50 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A.Reporting Entity - Continued
Discrete Component Unit:
Joint Ventures:
B.Government-wide and Fund Financial Statements
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.Beginning FY 2013,Evanston
Public Library financials are shown separately as a discrete component unit of the City of Evanston.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 of Evanston.
The Library Director submits a proposed budget to the Evanston Public Library (EPL)Board of Trustees for the
upcoming calendar year.This budget is included in the budget documents submitted by the City Manager to the City
Council. The Library budget is legally enacted through passage of a resolution by the EPL Board of Trustees.
The City participates in two joint ventures,which are reported as nonequity governmental joint ventures and are described
in Footnote 14.The joint ventures are:City of Evanston and 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 Evanston Public Library (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.
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.
- 51 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B.Government-wide and Fund Financial Statements - Continued
C.Fund Accounting
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
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.
The GASB has approved Statement No.68 -Accounting and Financial Reporting for Pensions -an amendment of GASB
No.27 and Statement No.71,Pension -Transition for Contributions made Subsequent to the Measurement Date,an
amendment of GASB No. 68. The City plans on implementing these standards in the December 31, 2015 fiscal year.
Funds are classified into three categories: governmental, proprietary,and fiduciary.Each category,in turn, is divided into
separate "fund types."
The government-wide financial statements 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.
In June 2012,the GASB issued statement No.67 -Financial Reporting for Pension Plans -an amendment of GASB
Statement No.25.This statement establishes accounting and financial reporting standards for the activities of pension
plans that are administered through trusts and meet certain criteria. This statement replaces the requirements of Statements
No.25,Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans,and
No.50,Pension Disclosures as they relate to pension plans that are administered through trusts or equivalent arrangements
that meet certain requirements. This standard was implemented effective January 1, 2014.
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.
- 52 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued
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 General Fund is the City's primary operating fund.It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Capital Improvements Fund accounts for the City's capital improvement program.The program includes
improvement to public buildings, paving of City streets, improvement of recreational facilities and other
The Employer Pension Contribution Fund is a special revenue fund which accounts for the recognition of
applicable tax revenues and employer contributions to the Pension Trust funds.
The City's and 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.
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 is a debt service fund which accumulate monies for the principal and interest
payments on general obligation debt.
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.
- 53 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
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.
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 nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations.The principal operating revenues of the enterprise funds and of the City’s internal
service funds are charges to customers for sales and services.Operating expenses for enterprise funds and internal service
funds include the cost of sales and services,administrative expenses,and depreciation on capital assets.All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
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.
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.
- 54 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
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. Police Pension Fund Investments
Long Term Expected
Police Pension Asset Class Target Allocation Real Rate of Return
Domestic Equity Large Cap 52.0%5.35%
Domestic Small Cap 5.0%6.56%
International Developed Foreign 5.0%5.85%
Fixed Income Investment Grade Corporate 8.0%2.50%
Fixed Income Intermediate U.S. Treasuries 25.0%2.04%
REITS 3.0%5.92%
Cash 2.0%-0.25%
Total 100%
The City and the Library reports unearned revenues on its government funds statements.Unearned revenues arise when a
potential revenue does not meet both the "measurable"and "available"criteria for recognition in the current period.
Unearned revenues also arise when resources are received by the City before it has a legal claim to them,as when grant
monies are received prior to the incurrence of qualifying expenditures.If subsequent revenue recognition criteria are met,
or when the City/Library has a legal claim to the resources,the liability for unearned revenue is removed from the
combined balance sheet and the revenue is recognized.
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 noninterest-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 the Illinois Funds.
The Police Pension Fund's investment policy allows investments in all of the above listed accounts,but does exclude any
repurchase agreements.The police pension fund's investment policy,in accordance with Illinois Statutes, establishes the
following target allocation across asset classes:
Illinois Compiled Statutes (ILCS)limit the Fund's 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.
Investments consist of certificates of deposit, treasury obligations,government agency obligations,and insurance contracts
with maturities greater than three months.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.
- 55 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
G. Police Pension Fund Investments - Continued
H. Fire Pension Fund Investments
Long Term Expected
Firefighters' Pension Asset Class Target Allocation Real Rate of Return
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%
The long-term expected rate of return on the Fund's investments was determined using an asset allocation study conducted
by the Fund's investment management consultant in 2014 in which best-estimate ranges of expected future real rates if
return (net of pension plan investment expense and inflation )were developed for each major asset class.These ranges
were combined to produce 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 or arithmetic real rates of return for
each major asset class included in the Fund's target asset allocation as of 12/31/14 are listed in the table above.
The long-term expected rate of return on the Fund's investments was determined using an asset allocation study conducted
by the Fund's investment management consultant in 2014 in which best-estimate ranges of expected future real rates if
return (net of pension plan investment expense and inflation )were developed for each major asset class.These ranges
were combined to produce 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 or arithmetic real rates of return for
each major asset class included in the Fund's target asset allocation as of 12/31/14 are listed in the table above.
The Firefighters'Pension Fund allows funds to be invested in any type of security authorized by the Illinois Pension Code.
The firefighters'pension fund's investment policy,in accordance with Illinois Statutes, establishes the following target
allocation across asset classes:
Illinois Compiled Statutes (ILCS)limit the Fund's 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
- 56 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
I.Inventories and Prepaid Items
J.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
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 34 has been reported.
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.
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.
Property, plant,and equipment are depreciated,and intangible assets are amortized using the straight-line method over the
following estimated useful lives:
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.
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.
- 57 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
K.Compensated Absences
L.Long-Term Obligations
M.Self-Insurance
N.Deferred Inflows of Resources
In the fund financial statements,governmental fund types recognize bond premiums and discounts,as well as bond
issuance costs,during the current period.The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources,while discounts on debt issuances are
reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received,are
reported as debt service expenditures.
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities,business-type activities,
or proprietary fund type statement of net assets.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.
It is the City 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.
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.
A deferred inflow of resources represents an acquisition of net position that applies to a future period and therefore will
not be recognized as an inflow of resources (revenue) until that future time.
- 58 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
O.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 adjustment necessary to convert GAAP basis property tax revenues to budgetary basis is shown in the notes to the
required supplementary information in the section on Budgets and Budgetary Accounting.
Property tax revenues are recognized when they become both measurable and available.On this basis,property tax
revenue includes all cash distributions of property tax received during the fiscal period between January 1,2014 and
December 31, 2014 and all property tax collections 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.
Property taxes are collected by the Cook County Collector and are remitted periodically to all taxing bodies, including the
City and Library. Distributions are made more often during the two main collection periods. Property taxes are levied on
a calendar year basis by passage of a tax levy ordinance.
- 59 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P. Fund Equity
4.Assigned -Has limitations resulting from indended use, where the intended use is established by the City Council.
It also includes all remaining amounts that are reported in governmental funds,other than the General Fund,that are not
classified as non-spendable and are neither restricted nor committed.
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.
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 (ordinance)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.
Governmental fund equity is classified as fund balance.In February 2009,the 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 Governmental Accounting Standards Board Statement No.54 -Fund Balance Reporting and
Governmental Fund Type Definitions, the City and the Library classifies governmental fund balance as follows:
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.
- 60 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Q.Interfund Transactions
R.Use of Estimates
S.Effect of New Accounting Standards on Current Period Financial Statements
T.Conduit Debt
The Governmental Accounting Standards Board (GASB)has approved GASB Statement No.68,The Accounting and
Financial Reporting for Pensions –an amendment of GASB Statement No.27,GASB Statement No.71,Pension –
Transition for Contributions Made Subsequent to the Measurement Date –an amendment of GASB No.68,GASB
Statement No.72,Fair Value Measurement and Application,GASB Statement No.73, Accounting and Financial
Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68,and Amendments to
Certain Provisions of GASB Statements 67 and 68,GASB Statement No.74,Financial Reporting for Postemployment
Benefit Plans Other Than Pension Plans and GASB Statement No.75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.Application of these standards may restate portions of these financial
statements.
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 City of Evanston,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, 2014, outstanding bond balance was $4,550,000.
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.
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.
The City approved the issuance of $13,590,000 Series 2011 Revenue Bonds during the fiscal period ending 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 the 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, 2014,
outstanding bond balance was $13,385,000.
- 61 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 2.RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A.
General obligation bonds payable 116,836,839$
Bonds premium liability 4,705,819
Compensated absences payable 9,778,710
IMRF Pension contributions payable 3,071,308
First Bank Loan 648,812
Pension contributions payable 18,514,156
153,555,644$
B.
1.
Capital outlay 6,285,666$
Capital outlay - contributions/other governmental activities 237,994
Depreciation expense (9,040,637)
(2,516,977)$
Net adjustments to reduce fund balance –total
governmental funds to arrive at net position –
governmental activities
Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-
wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net
position –governmental activities as reported in the government-wide statement of net position.One element of that
reconciliation explains that “Long-term liabilities,including bonds payable,compensated absences payable,First Bank
loan and pension contributions payable, are not due and payable in the current period and,therefore,are not reported in
the funds.” The details of this difference are as follows:
Explanation of Certain Differences between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities
The government fund statement of revenues,expenditures,and changes in fund balances includes a
reconciliation between net changes in fund balances –total governmental funds and changes in net position
of governmental activities as reported in the government-wide statement of activities.One element of that
reconciliation explains that “Governmental funds report capital outlays as expenditures.However,in the
statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense.” The details of this difference are as follows:
Net adjustment to decrease net changes in fund
balances -total governmental funds to arrive at
changes in net position of governmental activities
- 62 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 2.
B.
2.
Principal repayments:
General obligation debt 9,659,672$
SSD#5 Bond 380,000
IMRF Pension contributions payable 3,111,009
13,150,681$
3.
Compensated absences 217,243$
Amortization income 557,604
Pension contributions 1,036,178
IMRF Pension contributions payable (3,133,075)
(1,322,050)$
4.
Bond (9,345,000)$
Bond premium liability (704,211)
(10,049,211)$
Another element of that reconciliation states that "Issuance of Bonds provides current financial resources to
governmental funds." The details of this difference are as follows:
Net adjustment to increase net changes in fund
balances –total governmental funds to arrive at
changes in net position of governmental activities
Net adjustment to decrease net changes in fund
balances –total governmental funds to arrive at
changes in net position of governmental activities
Another element of that reconciliation states that "Some expenses reported in the statement of activities do
not require the use of current financial resources and,therefore,are not reported as expenditures in
governmental funds." The details of this difference are as follows:
Net adjustment to increase net changes in fund
balances -total governmental funds to arrive at
changes in net position of governmental activities
RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS –
Continued
Explanation of Certain Differences between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activities -
Continued
Another element of that reconciliation states that "The repayment of the principal of long-term debt
consumes the current financial resources of governmental funds.These transactions,however,have no
effect on net position." The details of this difference are as follows:
- 63 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 3.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1.
2.Public budget hearings are conducted. Taxpayer comments are received and noted.
3.The budget is legally enacted through passage of a resolution.
4.
5.
Blended Component Unit
Discrete Component Unit
1.
2.
3.
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.
For the first four months of 2014,Evanston Township was a blended component unit with two separate funds
(The Town Fund and the General Assistance Fund)as reported in previous years'financial statements.May 1,
2014 after a referendum vote,the City of Evanston took over the township functions 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.
Because of a calendar year,the Library Director submits a proposed operating budget for the upcoming
fiscal year commencing January 1, 2015 to the Evanston Public Library (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 Evanston Public Library 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 Evanston Public Library Board of
Trustees.
The Evanston Public Library follows these procedures in establishing the budgetary data reflected in the financial
statements:
- 64 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 3.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued
A.Budgetary Information - Continued
4.
5.
Fund Actual Budget Excess
General 89,004,451$ 87,675,035$ 1,329,416$
Neighborhood Stabilization Program 2 1,102,710 428,044 674,666
Special District #5 442,050 436,605 5,445
Howard Ridge Tax Increment District 721,450 300,000 421,450
B.DEFICIT FUND EQUITY
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 $153,365 as of December 31, 2014.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, 2014:
The Solid Waste Fund had a net deficit of $1,112,075 as of December 31, 2014.The City plans to use current resources
to pay for future liabilities.
The Fleet Services and Insurance Funds,internal service funds,had net deficits of $120,795 and $3,381,927,
respectively, as of December 31, 2014. The City plans to use current resources to pay for future liabilities.
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 period.
- 65 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 4.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS
A.Types of Accounts and Securities
B.Pooling of Cash and Investments
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, the Illinois Metropolitan Investment Fund (IMET), and the
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 of Evanston. However, unlike the City's public funds,
the Firefighters and Police Pension funds may invest in various equity accounts up to a limit of 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.
- 66 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 4.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS - Continued
C.Types of Investments
Investment Maturities (In Years)
Fair Value Less Than 1 Year 1 - 10 More Years Equities
3,333,374$ 3,333,374$ -$ -$
75,309,616 - 638,861 74,670,755
22,692,396 555,594 22,136,802 -
22,013,011 265,712 21,747,299 -
2,101,901 - 2,101,901 -
4,100,191 - 4,100,191 -
9,413,103 197 9,412,906 -
378,471 - 378,471 -
24,716,359 - - 24,716,359
$ 164,058,422 $ 4,154,877 $ 60,516,431 $ 99,387,114
877,324$
99,933
261,605
2,094,512
$ 3,333,374
MONEY WEIGHTED RATE OF RETURN
Police Pension Fund
Fire Pension Fund
For the year ended 12/31/14, the 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 12/31/14, the 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.
As of December 31, 2014, the City has the following investments and maturities. The fair value of the Illinois Funds is the same as
the value of the pool shares.
Investment Type
Fire and Police Pension
Money Market / Liquid Assets
Mutual Funds
U.S. Treasuries
Federal Home Loan Bank
Federal Home Loan Mortgage Corp
Fannie Mae
Corporate Bonds
Total Money Market / Liquid Assets
Ginnie Mae
Common Stock
Total Fire and Police Investment
Smith Barney Money Market
JP Morgan Money Market
Schwab Money Market
MB Bank Money Market
- 67 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 4.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued
C.Types of Investments - continued
Illinois Funds - City of Evanston $ 29,605,286
IMET money market
City of Evanston 3,232,572$
Police pension plan 1,954 3,234,526
$ 32,839,812
On September 29, 2014 the Illinois Metropolitan Investment Trust (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 IMET investments are reported as restricted investments and restricted net position. The City
believes that it will recover the remaining value of the investment.
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 Fire Pension Funds have investments in corporate bonds with S&P ratings ranging from BBB- to
AAA. The Illinois Funds and Money Markets were rated AAA by Standard & Poor's. The Illinois Metropolitan Investment 1 - 3
Year Fund (IMET) exclusively invests in AAA Standard &Poor's securities, such as treasury and agency obligations. IMET's
convenience fund collateralizes all of its deposits 110%. 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 U.S.government agencies were all rated
triple A or Aaa by the Standard &Poor’s and by Moody’s Investor’s Services. The following investments in Illinois Funds and
IMET are valued at the fund’s share price, the price for which the investments could be sold.
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.
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.
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,
2014, Police Pension Trust Fund had investments in each of U.S. Treasuries and Corporate Bonds that exceeded 10%of net position
available for benefits. The Firefighters' Pension Trust Fund had investments in Corporate Bonds that exceeded 10%of net position
available for benefits.
- 68 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 4.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued
D.Deposits
City
Fiduciary
E.Reconciliation of Unrestricted and Restricted Cash and Investments
Unrestricted cash and equivalents 60,804,966$
Unrestricted investments 363,495
Restricted cash and equivalents and investments 1,034,133
Total Cash and Investments – Primary Government 62,202,594
Fiduciary funds cash and equivalents 4,351,869
Fiduciary funds investments 160,725,048
Total Cash and Investments 227,279,511$
Carrying amount of deposits – from Note 4 D 30,381,277$
Illinois funds and IMET money market - from Note 4 C 32,839,812
Investments – from Note 4 C table 164,058,422
Total 227,279,511$
The total of unrestricted cash and investments and restricted cash and investments from the Statement of Net Position and for the
fiduciary funds is reconciled to the preceding deposit and investment disclosures (Notes 4C and Notes 4D) as follows:
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 filed by the counterparty's trust.
Deposits consist of deposits in interest-bearing and noninterest-bearing checking accounts. At December 31, 2014, the carrying
amount of the City's deposits, including cash on hand of $16,477 was $29,364,755. The financial institutions' balances totaled
$31,222,841.
Deposits consist of deposits in interest-bearing and noninterest-bearing accounts. At December 31, 2014, the carrying amount of the
Pension's deposits was $1,016,522. The financial institutions' balances totaled $1,016,522.
- 69 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 5.RECEIVABLES
A.Summary of Receivables
Motor
General Employer Vehicle Nonmajor
General Obligation Pension Solid Parking and Other
Fund Debt Contribution Water Sewer Waste System Funds Total
Receivables:
Property taxes 11,619,509$ 11,275,348$ 14,736,512$ -$ -$ -$ -$ 9,405,922$ 47,037,291$
Accounts - - - 2,513,722 2,186,660 711,758 - - 5,412,140
Notes - - - - - - - 8,586,612 8,586,612
Special assessments - - - - - - - 425,314 425,314
Other 2,865,464 - - - - - 640,950 959,488 4,465,902
Gross receivables 14,484,973 11,275,348 14,736,512 2,513,722 2,186,660 711,758 640,950 19,377,336 65,927,259
Less: allowance for
uncollectibles (232,390) (225,507) (294,730) - - - - (266,118) (1,018,745)
Net total receivables 14,252,583$ 11,049,841$ 14,441,782$ 2,513,722$ 2,186,660$ 711,758$ 640,950$ 19,111,218$ 64,908,514$
B.Notes Receivable – Special Revenue Funds
Interest Loans Loan
Rates Beginning Made Repayments Ending
0% - 8%7,691,837$ 956,232$ 139,457$ 8,508,612$
Receivables as of December 31, 2014 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:
Out of the total Notes Receivable,$8,379,371 is estimated not to be paid during the next year.Out of the total Special Assessment receivable,$285,500 is
estimated not to be paid during the next year.
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 City residents for the rehabilitation of single-family and multi-family housing.Initial funding for these loans was from Community
Development Block Grant (CDBG)and Housing and Urban Development (HUD)Funds.Two types of loans are made:(1)title transfer loans which are
due in full when the housing unit is sold,and (2)amortizing loans which are due in monthly installments over varying lengths of time.Repayments of
principal and any interest earned on these receivables,which are recorded in the respective Special Revenue funds,are used to make additional
rehabilitation loans.An allowance of $78,000 exists in the Special Revenue funds due to doubtful accounts.Loan activity for the current period is
summarized as follows:
- 70 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 6. CAPITAL ASSETS
A. Capital Asset Activity
Capital asset activity for the fiscal year ended December 31, 2014, was as follows:
Beginning Additions Deletions Transfers Ending
Governmental activities:
Capital assets, not being depreciated:
Land 7,212,044$ -$ -$ -$ 7,212,044$
Right of way 18,695,896 - - - 18,695,896
Artwork 155,000 - - - 155,000
Construction in progress 130,711 - 130,711 - -
Total capital assets, not being depreciated 26,193,651 - 130,711 - 26,062,940
Capital assets, being depreciated/amortized:
Buildings and improvements 78,301,796 987,754 - - 79,289,550
Office equipment and furniture 4,254,470 100,540 - - 4,355,010
Intangible assets 6,884,048 22,786 - - 6,906,834
Machinery and equipment 24,791,022 968,296 1,086,309 - 24,673,009
Infrastructure 157,690,819 5,403,982 - - 163,094,801
Capitalized leases 502,532 - - - 502,532
Total capital assets being depreciated/amortized 272,424,687 7,483,358 1,086,309 - 278,821,736
Less accumulated depreciation/amortization for:
Buildings and improvements 31,292,803 1,667,420 - - 32,960,223
Office equipment and furniture 3,122,710 165,859 - - 3,288,569
Intangible assets 5,629,437 173,544 - - 5,802,981
Machinery and equipment 15,976,152 1,609,081 1,079,635 - 16,505,598
Infrastructure 77,160,842 6,897,566 - - 84,058,408
Capitalized leases 465,407 3,908 - - 469,315
Total accumulated depreciation/amortization 133,647,351 10,517,378 1,079,635 - 143,085,094
Total capital assets being depreciated/amortized, net 138,777,336 (3,034,020) 6,674 - 135,736,642
Governmental activities capital assets, net 164,970,987$ (3,034,020)$ 137,385$ -$ 161,799,582$
- 71 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 6. CAPITAL ASSETS - Continued
A. Capital Asset Activity - Continued
Beginning Additions Deletions Transfers Ending
Business-type activities:
Capital assets, not being depreciated:
Land 4,644,510$ -$ -$ -$ 4,644,510$
Construction in progress 12,354,027 7,779,620 17,670,574 - 2,463,073
Artwork 359,752 - - - 359,752
Total capital assets, not being depreciated 17,358,289 7,779,620 17,670,574 - 7,467,335
Capital assets, being depreciated/amortized:
Land improvements 3,633,499 - - - 3,633,499
Buildings and improvements 77,575,480 - - - 77,575,480
Leasehold improvements 302,752 - - - 302,752
Plant 41,224,208 2,305,506 2,284,577 - 41,245,137
Transmission and distribution system 40,680,695 9,881,399 1,304,278 - 49,257,816
Sewer system and underground lines 244,538,566 4,901,309 - - 249,439,875
Intangible assets 509,834 - - - 509,834
Equipment 2,983,660 307,664 172,564 - 3,118,760
Parking meters 707,688 990,620 - - 1,698,308
Total capital assets being depreciated/amortized 412,156,382 18,386,498 3,761,419 - 426,781,461
Less accumulated depreciation/amortization for:
Land improvements 1,530,533 118,722 - - 1,649,255
Buildings and improvements 19,461,751 2,360,298 - - 21,822,049
Leasehold improvements 302,752 - - - 302,752
Plant 15,212,387 1,021,932 1,511,927 - 14,722,392
Transmission and distribution system 7,753,870 487,284 1,304,278 - 6,936,876
Sewer system and underground lines 46,287,828 3,301,407 - - 49,589,235
Intangible assets 242,941 72,833 - - 315,774
Equipment 2,401,414 160,667 172,564 - 2,389,517
Parking meters 857,063 198,955 - - 1,056,018
Total accumulated depreciation/amortization 94,050,539 7,722,098 2,988,769 - 98,783,868
Total capital assets being depreciated/amortized, net 318,105,843 10,664,400 772,650 - 327,997,593
Business-type activities capital assets, net 335,464,132$ 18,444,020$ 18,443,224$ -$ 335,464,928$
- 72 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 6. CAPITAL ASSETS - Continued
A. Capital Asset Activity - Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General management and support 402,439$
Public safety 578,065
Public works 6,131,501
Housing and Economic Development 9,352
Recreation and cultural opportunities 1,919,637
Internal Service Funds 1,476,384
Total depreciation expense – governmental activities 10,517,378$
Business – type activities:
Water 1,569,014$
Sewer 3,367,923
Motor Vehicle Parking 2,785,161
Total depreciation expense – business – type activities 7,722,098$
B.Construction Commitments
Capital Improvement Fund 2,015,271$
Sewer Fund 637,998
Water Fund 1,366,300
Total Construction Commitments 4,019,569$
The value of construction contracts signed, where the work has not yet been performed at December 31, 2014, is as follows:
- 73 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS
A. Interfund Accounts
At December 31, 2014 interfund receivables and payables consist of the following:
Due from Due to
Funds Other Funds Other Funds
Governmental Funds
General Fund
Emergency Telephone System -$ 142,439$
Economic Development 69,800 -
General Assistance 164,042 -
Home 7,086 -
Fleet Service 427,473 -
Insurance - 513,305
Community Development Block Grant 275,373 -
Capital Improvements - 33,129
Spec Assess CAP Project 13,968 -
Water 656,054 -
Sewer - 1,472,493
Solid Waste 1,695,473 -
Neighborhood Stabilization Program 2 11,766 -
Neighborhood Improvement - 20,000
Howard Ridge TIF 3,792 -
Motor Vehicle Parking System 285,947 -
Special Service DIST #4 200,000 -
Affordable Housing 13,521 -
Washington Natl TIF Debt Serv 43,775 -
General Obligation Debt Service - 149,924
Equipment Replacement - 551,164
Total General Fund 3,868,070 2,882,454
Capital Improvements
General Fund 33,129 -
Water Fund 324,816 -
Total Capital Improvements 357,945 -
General Obligation Debt Service Fund
General Fund 149,924 -
Total General Obligation Debt Service Fund 149,924 -
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.
- 74 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS - Continued
A. Interfund Accounts - Continued
Due from Due to
Funds Other Funds Other Funds
Nonmajor Governmental Funds
Neighborhood Stabilization Program 2
General Fund -$ 11,766$
Economic Development
General Fund - 69,800
CD Loan Fund 1,252 -
Solid Waste 292 -
Insurance Fund - 39,180
Total Economic Development 1,544 108,980
Affordable Housing
General Fund - 13,521
Motor Vehicle Parking System 10,000 -
Insurance Fund - 1,166
Total Affordable Housing 10,000 14,687
Emergency Telephone System
General Fund 142,439 -
Solid Waste 1,316 -
Insurance Fund - 11,950
Total Emergency Telephone System 143,755 11,950
Community Development Block Grant
General Fund - 275,373
Spec Assess CAP Project 178 -
CD Loan Fund - 21,130
Insurance Fund - 1,454
Total Community Development Block Grant 178 297,957
Community Development Loan
Economic Development Fund - 1,252
Community Development Block Grant 21,130 -
Total Community Development Loan 21,130 1,252
Neighborhood Improvement
General Fund 20,000 -
Total Neighborhood Improvement 20,000 -
Home
General Fund - 7,086
Total Home - 7,086
- 75 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS - Continued
A. Interfund Accounts - Continued
Due from Due to
Funds Other Funds Other Funds
Nonmajor Governmental Funds - Continued
Washington Natl. Tax Increment District Debt Svc.
General Fund -$ 43,775$
Insurance Fund - 27,583
Total Washington Natl. Tax Increment District Debt Svc.- 71,358
Howard Ridge Tax Increment District
General Fund - 3,792
Water Fund - 112
Sewer Fund - 228
Solid Waste 2,979 -
Insurance Fund - 5,000
Total Howard Ridge Tax Increment District 2,979 9,132
Howard Hartrey Tax increment District
Insurance Fund - 12,033
Total Howard Hartrey Tax increment District - 12,033
Special Service District No. 4
General Fund - 200,000
Total Special Service District No. 4 - 200,000
Motor Fuel
Insurance Fund - 69,417
Total Motor Fuel - 69,417
Southwest Tax Increment District
Insurance Fund - 2,458
Total Southwest Tax Increment District - 2,458
West Evanston Tax Increment District
Insurance Fund - 5,000
Total West Evanston Tax Increment District - 5,000
General Assistance
General Fund - 164,042
Total General Assistance - 164,042
- 76 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS - Continued
A. Interfund Accounts - Continued
Due from Due to
Funds Other Funds Other Funds
Nonmajor Governmental Funds - Continued
Spec Assess CAP Project
General Fund -$ 13,968$
CBDG Fund - 178
Motor Vehicle Parking System 9,121 -
Total Spec Assess CAP Project 9,121 14,146
Total Nonmajor Governmental Funds 208,707 1,001,264
Total Governmental Funds 4,584,646 3,883,718
Enterprise Funds
Water
General Fund - 656,054
Sewer Fund 160,551 -
Motor Vehicle Parking System 10,891 -
Howard Ridge TIF 112 -
Solid Waste 388,593 -
Capital Improvements - 324,816
Insurance Fund - 319,838
Total Water 560,147 1,300,708
Sewer
General Fund 1,472,493 -
Howard Ridge TIF 228 -
Special Assessment CP Fund 415,832 -
Insurance Fund - 34,586
Water Fund - 160,551
Solid Waste - 638,865
Total Sewer 1,888,553 834,002
Solid Waste
General Fund - 1,695,473
Emergency Telephone System Fund - 1,316
CD Loan Fund - 292
Howard Ridge TIF - 2,979
Water Fund - 388,593
Motor Vehicle Parking System 39,034 -
Sewer 638,865 -
Total Solid Waste 677,899 2,088,653
- 77 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS - Continued
A. Interfund Accounts - Continued
Due from Due to
Funds Other Funds Other Funds
Enterprise Funds - Continued
Motor Vehicle Parking System
General Fund -$ 285,947$
Affordable Housing Fund - 10,000
Water Fund - 10,891
Solid Waste - 39,034
Special Assessment CP Fund - 9,121
Insurance Fund - 101,026
Sewer Fund - 415,832
Total Motor Vehicle Parking System - 871,851
Total Enterprise Funds 3,126,599 5,095,214
Internal Service Funds
Fleet Services
General Fund - 427,473
Insurance Fund - 1,626
Total Fleet Services - 429,099
Insurance
General Fund 513,305 -
Motor Fuel Tax Fund 69,417 -
Emergency Telephone System Fund 11,950 -
Community Development Block Grant Fund 1,454 -
Economic Development Fund 39,180 -
Affordable Housing Fund 1,166 -
Washington Natl. Tax Increment District Debt Svc.27,583 -
Howard Hartrey Tax increment District 12,033 -
Southwest Tax Increment District 2,458 -
Howard Ridge Tax Increment District 5,000 -
West Evanston Tax Increment District 5,000 -
Motor Vehicle Parking System 101,026 -
Water Fund 319,838 -
Sewer Fund 34,586 -
Fleet Service 1,626 -
Total Insurance 1,145,622 -
Equipment Replacement
General Fund 551,164 -
Total Equipment Replacement 551,164 -
Total Internal Service Funds 1,696,786 429,099
Total Primary Government 9,408,031$ 9,408,031$
- 78 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS - Continued
B. Interfund Transfers
At December 31, 2014 transfers in / out consist of the following:
Transfers Transfers
Funds In Out
Governmental Funds
General Fund
Emergency Telephone System Fund 125,950$ -$
Neighborhood Stabilization Program 2 46,779 -
Affordable Housing Fund 13,990 -
Washington Natl. Tax Increment District Debt Svc.331,000 -
Howard Hartrey Tax Increment District 144,400 -
Southwest Tax Increment District 29,500 -
Capital Improvement Fund 475,000 936,500
Town Fund 277,340 -
Water Fund 3,369,559 -
Sewer 145,044 -
Motor Vehicle Parking System 869,242 -
Solid Waste Fund - 1,055,967
Howard Ridge Tax Increment District 60,000 -
Motor Fuel Tax Fund 833,000 -
West Evanston Tax Increment District 60,000 -
General Obligation Debt Service Fund - 609,000
Economic Development 452,707 -
Total General Fund 7,233,511 2,601,467
Capital Improvements
Equipment Replacement Fund - 1,072,810
General Fund 936,500 475,000
Total Capital Improvements Fund 936,500 1,547,810
General Obligation Debt Service Fund
General Fund 609,000 -
Special Assessment 169,848 -
Sewer 207,284 -
Total General Obligation Debt Service Fund 986,132 -
Nonmajor Governmental Funds
Economic Development
Howard Ridge 45,500 -
General Fund - 452,707
Total Economic Development 45,500 452,707
Southwest Tax Increment District
General Fund - 29,500
Howard Hartry Tax Increment District
General Fund - 144,400
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.
- 79 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 7.INTERFUNDS - Continued
B. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Nonmajor Governmental Funds - Continued
Howard Ridge Tax Increment District
Economic Development -$ 45,500$
General Fund - 60,000
Total Howard Ridge Tax Increment District - 105,500
Washington Natl. Tax Increment District Debt Svc.
General Fund - 331,000
Motor Vehicle Parking System - 2,925,296
Total Washington National Tax Increment District - 3,256,296
West Evanston Tax Increment District
General Fund - 60,000
Emergency Telephone System
General Fund - 125,950
Special Assessment
General Obligation Debt Service Fund - 169,848
Affordable Housing Fund
General Fund - 13,990
Motor Fuel Tax
General Fund - 833,000
Neighborhood Stabilization Program 2
General Fund - 46,779
Home Fund
General Fund - 277,340
Total Nonmajor Governmental Funds 45,500 5,515,310
Total Governmental Funds 9,201,643 9,664,587
Enterprise Funds
Water
General Fund - 3,369,559
Sewer
General Fund - 145,044
General Obligation Debt Service Fund - 207,284
Total Sewer - 352,328
Motor Vehicle Parking System
General Fund - 869,242
Washington National Tax Increment District 2,925,296 -
Total Motor Vehicle Parking System 2,925,296 869,242
Solid Waste
General Fund 1,055,967 -
Total Enterprise Funds 3,981,263 4,591,129
Internal Service Funds
Equipment Replacement
Capital Improvements 1,072,810 -
Total Internal Service Funds 1,072,810 -
Total Primary Government 14,255,716$ 14,255,716$
- 80 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2014
NOTE 8. Operating Leases
Number of Monthly Annual lease
Leasing Co.Expiration Machines Payment payment Type of Machines
Chicago Office
Technology Group Expired 9 1,642 Expired Copiers
Mail Finance 4/30/2018 1 375 4,500 Postage Machine
Minimum annual lease payments are as follows:
Year ending 12/31/2015 $ 4,500
Year ending 12/31/2016 4,500
Year ending 12/31/2017 4,500
Year ending 12/31/2018 1,500
15,000$
The City of Evanston's copier lease expired with Chicago Office Technology Group on July 31, 2014.
The City is currently on a month to month lease and a Request for Proposal (RFP)has been issued for
copiers and related maintenance service.Proposals are currently being evaluated.The copiers are located
in the Evanston Civic Center and the Evanston Police headquarter.
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.
- 81 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9.LONG-TERM DEBT
A. Changes in Long-Term Debt
Final
Interest Maturity Balance Balance Due Within
Rate Date 12/31/2013 Issued Payments 12/31/2014 One Year
G.O. Debt Governmental Activities
Series 2006 3.85%-5.00%12/1/2026 9,415,000$ -$ 235,000$ 9,180,000$ 340,000$
Series 2006B 4.00%-4.25%12/1/2023 14,395,000 - 55,000 14,340,000 1,130,000
Series 2007 4.00%-5.00%12/1/2016 13,993,099 - 1,949,709 12,043,390 1,308,711
Series 2008A 3.00%-5.00%12/1/2021 2,720,000 - 300,000 2,420,000 305,000
Series 2008C 3.00%-5.00%12/1/2028 8,160,600 - 397,980 7,762,620 410,040
Series 2008D 3.25%-5.00%12/1/2016 2,637,440 - 1,705,600 931,840 736,320
Series 2010A 2.00%-3.625%12/1/2029 5,655,000 - 305,000 5,350,000 -
Series 2010B 1.00%-3.30%12/1/2019 4,840,562 - 684,946 4,155,616 726,711
Series 2011A 2.00%-4.50%12/1/2031 12,893,486 - 1,250,432 11,643,054 542,634
Series 2012A (SSA#5)2.00%-3.25%12/1/2032 1,175,000 - 380,000 795,000 390,000
Series 2012A 2.00%-3.25%12/1/2032 8,905,000 - 1,035,000 7,870,000 295,000
Series 2013A 2.00%-4.75%12/1/2033 10,565,000 - 20,000 10,545,000 450,000
Series 2013B 2.00%-3.00%12/1/2025 22,176,324 - 1,721,005 20,455,319 2,593,702
Series 2014 1.25%-5.00%12/1/2034 - 9,345,000 - 9,345,000 275,000
Subtotal Governmental Activities 117,531,511 9,345,000 10,039,672 116,836,839 9,503,118
Bonds premium liability 4,559,212 704,211 557,604 4,705,819 -
OPEB liability 1,792,118 116,936 - 1,909,054 -
Pension contributions 19,550,334 14,135,715 15,171,893 18,514,156 -
Compensated absences payable- City 10,299,711 3,993,671 4,091,754 10,201,628 3,978,635
IMRF Pension contributions 3,049,242 3,133,075 3,111,009 3,071,308 -
First Bank Loan 648,812 - - 648,812 648,812
Claims payable 4,791,460 1,110,000 958,495 4,942,965 1,971,381
Subtotal Other G.A. Liabilities 44,690,889 23,193,608 23,890,755 43,993,742 6,598,828
Total Governmental Activity Debt & Liabilities 162,222,400$ 32,538,608$ 33,930,427$ 160,830,581$ 16,101,946$
G.O. Debt Business-type Activities
Series 2007 Sewer 4.00%-5.00%12/1/2016 865,000$ -$ 195,000$ 670,000$ 210,000$
Series 2007 Parking 4.00%-5.00%12/1/2016 620,000 - 140,000 480,000 150,000
Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 10,115,000 - 1,685,000 8,430,000 2,090,000
Series 2008C Sewer 3.00%-5.00%12/1/2028 1,989,400 - 97,020 1,892,380 99,960
Series 2010B 1.00%-3.30%12/1/2019 954,437 - 135,054 819,383 143,289
Series 2011A 2.00%-4.50%12/1/2031 3,741,512 - 169,568 3,571,944 167,366
Series 2012A 2.00%-3.25%12/1/2032 4,305,000 - 175,000 4,130,000 175,000
Series 2013A- Water 2.00%-4.75%12/1/2033 2,000,000 - 55,000 1,945,000 75,000
Series 2013B 2.00%-3.00%12/1/2025 5,821,009 - 671,876 5,149,133 1,139,331
Series 2014 1.25%-5.00%12/1/2034 - 2,700,000 - 2,700,000 70,000
Subtotal Business-type Activities 30,411,358 2,700,000 3,323,518 29,787,840 4,319,946
Water Revenue Bond Series 1999 4.125-4.375%1/1/2014 305,000 - 305,000 - -
IEPA Loans 2.535-3.59%Various 64,658,382 1,629,514 7,875,237 58,412,659 7,731,810
Unamortized bond Premium and discount 9,219 - 1,128 8,091 -
Bonds premium liability 949,442 197,048 175,290 971,200 -
Compensated absences payable- City 975,906 277,227 308,783 944,350 302,191
IMRF Pension contributions 652,294 700,671 695,735 657,230 -
OPEB Liability 272,159 44,543 - 316,702 -
Subtotal Other Business-type Activity Liabilities 2,859,020 1,219,489 1,180,936 2,897,573 302,191
Total Business-type Activities Debt & Liabilities 98,233,760$ 5,549,003$ 12,684,691$ 91,098,072$ 12,353,947$
Total Governmental & Business-type Activities Debt & Liabilities 260,456,160$ 38,087,611$ 46,615,118$ 251,928,653$ 28,455,893$
Note:Employer Pension Contribution Fund has been used to liquidate the net pension obligation.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 post employment benefit obligations.
- 82 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9- LONG-TERM DEBT - Continued
A. Changes in Long-term Debt- Continued
Business type activities - Water Revenue Bonds
Revenue debt payable consists of the following:
Date of Final Interest Original
Issue Maturity Rates Indebtedness Balance
1/25/1999 1/1/2014 Various 3,500,000$ -$
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 145,914,377$ 58,412,659$
Total Business type Activities- IEPA Loan Debt 58,412,659$
Business type activities revenue bonds are payable from revenues derived from Water service fees.The City
has pledged future revenues, net of operating expenses,to repay original principal totaling $5,855,000 in
revenue bonds issued in 1999 and 2002.Proceeds from the bonds provided financing for Water CIP
projects.The bonds are payable solely from revenues through 2014. Annual interest payment on the bonds
was $6,672 of net revenues for the year ended December 31, 2014.The final principal and interest payment
on the bonds of $311,672 was made on January 1, 2014.
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 $145,914,377 in
IEPA loans issued in 1994 through 2014.Proceeds from the loans provided financing for the Long Term
Sewer and Water Improvement Program.The IEPA loans,payable from operating revenues and property
tax levies,are payable through 2034. Annual principal and interest on the loans are expected to require
$9,162,226 of net revenues for the Fiscal year 2015.The total principal and interest remaining to be paid on
the loans is $65,998,980.Principal and interest paid for the current period and total customer net revenues
were $9,395,983 and $10,538,125 respectively.
- 83 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9- LONG-TERM DEBT - Continued
B.General Obligation Bonds Payable
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities.General
obligation bonds have been issued for both governmental and business-type activities.
General obligation bonds are direct obligations and pledge the full faith and credit of the City.These bonds generally are issued as
20-year serial bonds with equal amounts of principal maturing each year.
In August, 2014 the City issued Series 2014 in General Obligation bonds for a total of $12,045,000.The Bonds were issued to
provide financing for certain public improvement projects.The Bond issue also included money to deposit into debt service funds of
the City's Sewerage System for purposes of paying certain outstanding obligations on their scheduled payment dates.
- 84 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9- LONG-TERM DEBT - Continued
B.General Obligation Bonds Payable - Continued
Year Ending Governmental Activities Business-type Activities
December 31 Principal Interest Principal Interest
2015 9,503,118$ 4,397,029$ 4,319,946$ 1,115,128$
2016 10,240,943 3,988,418 4,490,816 946,923
2017 9,783,864 3,690,834 5,062,126 800,591
2018 9,436,234 3,372,484 4,016,935 586,928
2019 9,084,112 3,050,214 869,134 450,043
2020-2024 39,225,790 10,390,015 3,804,355 1,830,535
2025-2029 21,499,517 3,886,577 4,412,794 1,028,324
2030-2034 8,063,261 780,929 2,811,734 247,789
Total 116,836,839$ 33,556,500$ 29,787,840$ 7,006,261$
C. Special Service District Bonds Payable
For the Fiscal
Year ending Principal Interest
2015 390,000$ 23,745$
2016 405,000 11,872
Total 795,000$ 35,617$
Governmental Activities
The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds.
The City also issued debt in the Special Service District No.5 fund to provide funds for the principal and interest payments on
unlimited ad valorem tax bonds issued for this special taxing district.
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:
- 85 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9- 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
2015 7,731,810$ 1,430,416$
2016 7,213,736 1,229,525
2017 6,597,698 1,042,640
2018 6,145,050 872,318
2019 5,186,433 716,577
2020-2024 18,258,115 1,936,980
2025-2029 6,139,419 381,010
2030-2034 1,140,398 56,705
Total 58,412,659$ 7,666,171$
E.Loan with First Bank & Trust, Evanston
As of December 31, 2014,the City currently has 25 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.
Business-type Activities
In 2013,the City set up a loan/line of credit with First Bank and Trust, Evanston in the amount of $2,200,000.The loan term is three
years with a maturity date of August 27, 2015.As of December 31, 2014,the City had drawn $648,812 for two projects funded out
of TIF funds. The interest rate will be calculated based on 1.00 percentage point over one month "LIBOR" rate index.
- 86 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9- LONG-TERM DEBT - Continued
F.Post Employment Benefits other than Pensions (Defined Benefit Plan)
City Library
Annual Required Contribution 1,071,479$ 17,169$
Interest on net OPEB obligation 92,893 1,829
Adjustment to Annual Required Contribution (78,830) (1,552)
Annual Pension Cost 1,085,542 17,446
Contributions made (924,063) (1,384)
Increase (decrease) in net pension obligation 161,479 16,062
Net OPEB obligation - Beginning 2,064,277 40,654
Net OPEB obligation - Ending 2,225,756$ 56,716$
Percentage of
Fiscal Period Annual OPEB Annual OPEB Net OPEB
Ended Cost Cost Contributed Liability
12/31/2012 1,113,107$ 78.27%1,896,922$
12/31/2013 1,085,522 84.58%2,064,277
12/31/2014 1,085,542 85.12%2,225,756
The City of Evanston's and 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 post employment 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.
Contribution requirements are established through Illinois State laws.The City of Evanston and 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, 2014,the City's estimated contribution to the plan is $925,447.The City of Evanston's and Library's
annual other post employment benefit (OPEB)cost (expense)is calculated based on the annual required contribution of the employer
(ARC),an amount actuarially determined in accordance with parameters of GASB Statement No.45.The ARC represents a level of
funding that, if paid on an ongoing basis,is projected to cover normal cost each year and amortize any unfunded actuarial liabilities
(or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City of Evanston's and Library's annual OPEB cost for the year ended December
31, 2014,the estimated contributions to the plan and changes in the City's and Library's net OPEB obligation to the retiree health
plan.
The City of Evanston's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation
for 2014 and the two years prior were as follows.
- 87 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 9- LONG-TERM DEBT - Continued
F.Post Employment Benefits other than Pensions (Defined Benefit Plan) - Continued
Percentage of
Fiscal Period Annual OPEB Annual OPEB Net OPEB
Ended Cost Cost Contributed Liability
12/31/2012 15,508$ 7.84%26,028$
12/31/2013 16,089 9.09%40,654
12/31/2014 17,446 7.93%56,716
City Library
Actuarial accrued liability (AAL)15,636,027$ 153,846$
Actuarial value of plan assets - -
Unfunded Actuarial Accrued Liability (UAAL)15,636,027$ 153,846$
Funded ratio (actuarial value of plan assets/AAL)- -
Covered payroll (active plan members)51,891,063 1,761,336
UAAL as a percentage of covered payroll 30.13%8.73%
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 January 1 2014,the entry age normal cost method was used.The actuarial assumptions include a 7.00
percent investment rate of return and an annual healthcare cost trend rate of 8.50 percent initially,reduced by decrements to an
ultimate rate of 4.50 percent in the year 2023.Both rates include a 2.5 percent 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, 2014, was 30 years.
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
multiyear 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.
The Library's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2014
and the two years prior were as follows.
The funded status of the City and Library plan based on the projected valuation results as of December 31, 2014, was as follows:
- 88 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 10.FUND EQUITY
A.Restricted Net Position - Fiduciary Funds
Fiduciary Funds
Firefighters' Pension Fund Restriction for employee pension benefits 68,241,712$
Police Pension Fund Restriction for employee pension benefits 99,687,542
Total Fiduciary Funds 167,929,254$
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 parkway trees 40,267
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 363,515
Assigned for Mayor's programs 93,179
Assigned for Chiaravelle escrow 204,600
Assigned for IMRF - Pension 1,814,000
Assigned for Compensated Absences 1,804,360
Other assignments 226,313
5,347,110$
Capital Improvement Fund
Assigned for capital projects 8,170,926$
Non-major Governmental Funds
Assigned for special assessment capital project 2,518,568$
Total Assigned Fund Balances 16,036,604$
- 89 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 11.INDIVIDUAL FUND ACTIVITIES
A.General Obligation Debt Service Fund
B.Water Fund
C.Special Service District No. 4
The City usually adopts several resolutions abating portions of the property tax debt service levies.The amount of
property taxes abated is derived from principal and interest payments by private assessments on street paving projects;
additional 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 twenty years until
February 28, 2017.The contract is renewable at ten-year intervals thereafter.Under the terms of the contract,Evanston
is to supply 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,Evanston is to supply the NWWC sufficient potable Lake Michigan
water to satisfy the Commission’s maximum 24-hour demands for Lake Michigan water for resale to the Commission’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 2014 was $329,592 which includes an estimated allowance amount
of $6,592.
The ordinance also authorized the City to enter into an agreement with DOWNTOWN EVANSTON,an Illinois not-for-
profit corporation to plan, implement, and manage the district.
- 90 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 12.RISK MANAGEMENT - CLAIMS AND JUDGMENTS
The changes in the balances of claims liabilities during the past two fiscal periods are as follows:
Workers’General
Compensation Liability Total
December 31, 2012 2,957,267$ 4,303,500$ 7,260,767$
New claims and/or estimate revisions 76,563 (1,286,360) (1,209,797)
Claims payments (929,045) (330,465) (1,259,510)
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$
For workers'compensation, specific excess coverage in excess of $650,000 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.
The City is exposed to various risks of loss related to torts;theft of,damage to,and destruction of assets;errors and
omissions;natural disasters;and injuries to the City's employees.The City maintains commercial all-risk property insurance
to cover damage to City facilities and contents and other losses including business interruption and loss of rents.The
coverage is subject to a deductible of $50,000 (except $100,000 for flood and earthquake)for each loss and each location.
The City also maintains crime and fidelity insurance coverage with a $25,000 deductible to a limit of $2,000,000.In
addition, coverage is maintained for ambulance/paramedic liability.
- 91 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 13.CONTINGENCIES
NOTE 14.JOINT VENTURES
A.Solid Waste Agency of Northern Cook County
There are various claims and legal actions pending against the City for which provision has been made in the financial
statements.At the present time,the City believes that the reserves established are sufficient so that the expected
liability for these claims and legal actions will not materially exceed the amounts recorded in the financial statements.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal government.Any disallowed claims,including amounts already collected,may constitute a
liability of the applicable funds.The amount,if any,of the expenditures which may be disallowed by the grantor
cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
On March 28, 1988, the Evanston City Council authorized agreements providing for the City's participation in the Solid
Waste Agency of Northern Cook County (Agency) and in the interim financing of that Agency.The Agency was
planned and developed by the Northwest Municipal Conference,of which the City is a member.The agency is
empowered to plan, finance, construct, and operate a solid waste disposal system.
The Agency is a municipal joint action agency created as of May 2, 1988 under the provisions of the Intergovernmental
Cooperation Act,5 ILCS 220/3.2.The Agency consists of twenty-three municipalities.The Agency is governed by a
Board of Directors consisting of one official selected by each member 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.
- 92 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 14.JOINT VENTURES – Continued
A.Solid Waste Agency of Northern Cook County - Continued
Summary of Financial Position as of April 30, 2014:
Current assets 4,975,698$
Property, plant, and equipment 9,802,029
Total assets 14,777,727
Current liabilities 4,001,473
Long-term debt, net of unamortized discount 1,214,781
Total liabilities 5,216,254
Deferred outflows
Deferred amount on refunding (7,850)
Net Investment in capital assets 7,387,248
Restricted net position 2,870,145
Unrestricted net position (688,070)
Net Position 9,569,323$
Summary of Revenues and Expenses for the Year Ended April 30, 2014:
Total revenues 14,380,631$
Total expenses (14,091,744)
Net income 288,887$
Complete financial statements for the agency can be obtained at 2700 Patriot Blvd., Glenview, IL 60026.
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.
- 93 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 14.JOINT VENTURES – Continued
B.Evanston Housing Corporation
Statement of Financial Position as of December 31, 2013:
Cash and cash equivalents 1,196,756$
Mortgage loans receivable 2,096,141
Total assets 3,292,897
Payables and accrued expenses 228,897
Notes payable 3,064,000
Total liabilities 3,292,897
Net Position -$
(Note: December 31, 2013 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 corporation is to lend mortgage funds to
qualified, income eligible, first-time homebuyers in the City of Evanston.
The Corporation is governed by a Board of Directors of ten people, four of whom are selected by the City.The Board
has the authority to approve the annual budget and to arrange for the management of the affairs of the Corporation.
The City has no 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 $639,000 to the corporation under the notes due on or before November 30, 2034.
The notes bear no interest.However,the City is entitled to a certain net sales consideration upon the sale or exchange
of the mortgaged property,as well as a prorated portion of the investment income earned on the funds not loaned to
mortgagees.
The financial institutions'funds are advanced under Non-Recourse Collateral Trust Notes.The notes are payable on or
before November 30, 2029. Interest accrues based on interest earned from the mortgage notes receivable and
investments,less expenses. Interest is paid semiannually to the holders on a pro-rata basis based on the amount of each
note held to the total outstanding notes.
The audited financial statements of Evanston Housing Corporation for the year ended December 31,2013 are
summarized as follows:
- 94 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 14.JOINT VENTURES – Continued
B.Evanston Housing Corporation - Continued
Statement of Activities for the Year Ended December 31, 2013:
Total revenues 105,740$
Total operating expenses (105,740)
Excess of revenues over expenses -$
(Note: December 31, 2013 is the most current information available.)
NOTE 15.DEFERRED COMPENSATION PLANS
ICMA Plan balance 47,522,384$
Nationwide Plan balance 6,339,148
Total 53,861,532$
The City and its agent have no liability for losses under the plans, but do have the duty of care that would be required
of an ordinary prudent investor.
The City provides the Corporation with office space and staff support on a cost 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.
The City of Evanston offers its elected officials and employees a deferred compensation plan created in accordance
with Internal Revenue Code Section 457.The plan is administered by the ICMA Retirement Corporation.The plan,
available to all City employees,permits them to defer a portion of their current salary to all future years.The deferred
compensation is not available to the participants until termination,retirement, death,or an unforeseeable emergency
occurs.Additionally,the Firefighter's collective bargaining agreement allows them an additional deferred
compensation plan administered by Nationwide created in accordance with Internal Revenue Code Section 457.
The assets of the plan are held in Trust (ICMA Retirement Corporation Deferred Compensation Plan and Trust),with
the City serving as trustee,for the exclusive benefit of the plan participants and their beneficiaries.The assets cannot
be diverted to any other purpose.The City's beneficial ownership of plan assets held in the ICMA Retirement Trust is
held for the further exclusive benefit of the plan participants and their beneficiaries.
- 95 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS
Illinois Municipal Retirement Fund
A.Plan Description
The Employer Pension Contribution Fund is a special revenue fund and uses the modified accrual basis of accounting.The tax revenues are
recognized when measurable and available. The expenditures are recorded when the liability is incurred.
The City contributes to three defined benefit pension plans,the Illinois Municipal Retirement Fund (IMRF),a defined benefit agent multiple-
employer public employee retirement system;the Police Pension Plan, which is a single-employer pension plan;and the Firefighters’Pension
Plan, which is also a single-employer pension plan.The Police Pension Plan and the Firefighters’Pension Plan do not issue separate reports
on the pension plans. IMRF issues a publicly available financial report that includes financial statements and required 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 benefits,benefit levels, employee contributions,and employer
contributions are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly.
In 2010,the Illinois Legislature passed Senate Bill 1946.The Bill modifies benefits for most Illinois public pension systems,including
IMRF's regular plans.The provisions of the bill became effective January 1, 2011.The bill created a second tier for the employees starting on
or after January 1, 2011.As a part of this bill, the vesting time for the second tier employees has been increased from eight to ten years.The
bill also increased the age to receive full retirement benefits to 67 and reduced retirement benefit to age 62 from the current age of 60 and 55
respectively for each type of benefit.In 2014,the final rate of earnings used to calculate a pension is also capped at $110,631 as a part of
pension reforms.
The City created a special revenue fund,the Employer Pension Contribution Fund,to accommodate the Police and Fire pension accounting
requirements. This fund recognizes the appropriate tax revenues for the City on behalf of the Pension Trust Funds and contributes those
amounts into the Pension Trust Funds as the employer contribution.The Employer Pension Contribution Fund is a special revenue fund and
uses the modified accrual basis of accounting.The tax revenues are recognized when measureable and available.The expenditures are
recorded when the liability is incurred.
Employees participating in IMRF are required to contribute 4.50%of their annual covered salary.The member rate is established by state
statute.The City and Township are required to contribute at an actuarially determined rate.The City’s rate as of December 2014 was
11.79% of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees.
- 96 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
Illinois Municipal Retirement Fund - Continued
B.Funding Status and Progress
C.Annual Pension Cost
Actuarial Percentage
Valuation Annual Pension of APC Net Pension
Date Cost (APC) Contributed Obligation
12/31/14 4,171,275$ 100%4,010,484$
12/31/13 4,084,999 93%4,003,630
12/31/12 3,863,934 88%3,710,342
As of December 31, 2014,the most recent actuarial valuation date,the City's Regular plan was 84.55% funded.The City's actuarial accrued
liability for benefits was $101,823,526 and the actuarial value of assets was $86,088,419 resulting in an underfunded actuarial accrued
liability (UAAL)of $15,735,107.The covered payroll for the fiscal year ended December 31, 2014 (annual payroll of active employees
covered by the plan) was $35,379,772 and the ratio of the UAAL to the covered payroll was 44%.
The City’s gross total payroll for the fiscal year ended December 31, 2014 was $66,772,410.Of this amount, $35,379,772 in payroll earnings
were reported to and covered by the IMRF system.
The schedule of funding progress for the postemployment defined benefit plan immediately following the notes to the financial statements
presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial
accrued liability for benefits over time.
For December 31, 2014,the employer's actual contributions for pension cost were $4,171,275.Actual required contributions for calendar
year 2014 was $4,171,275.The required contribution was determined as part of the December 31, 2012 actuarial valuation using the entry
age actuarial cost method.The actuarial assumptions included (a)7.5%investment rate of return (net of administrative expenses),(b)
projected salary increases of 4%a year,attributable to inflation,(c)additional projected salary increases ranging from 0.4%to 10%per year,
depending on age and service,attributable to seniority/merit,and (d) post-retirement benefit increases of 3% annually.The actuarial value
of IMRF assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-
year period with a 20% corridor.
Three-Year Trend Information for IMRF - City of Evanston
- 97 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund - Continued
C.Annual Pension Cost - Continued
IMRF
Annual required contribution 4,171,275$
Interest on net pension obligation 300,272
Adjustment to annual required contribution (293,418)
Annual pension cost 4,178,129
Contributions made (4,171,275)
Increase (decrease) in net pension obligation 6,854
Net pension obligation at January 1, 2014 4,003,630
Net pension obligation at December 31, 2014 4,010,484$
The City’s annual pension cost and net pension obligation for IMRF pension plan as of December 31, 2014 are as follows:
- 98 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS – Continued
Police and Firefighters' Pension Plans
D.Plan Descriptions
E.Concentration of Investments
F.Funding Status and Progress
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.
As of December 31, 2014,the City's Police Pension plan was 52.65% funded.The City's actuarial accrued liability for benefits was
$189,324,239 and the actuarial value of assets was $99,687,542 resulting in an underfunded actuarial accrued liability (UAAL)of
$89,636,697.The covered payroll for the fiscal year ending December 31, 2014 (annual payroll of active employees covered by the Police
Pension Plan) was $13,537,726 and the ratio of the UAAL to the covered payroll was 662.13%.
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's
payroll for police and firefighter employees covered by the plans for the fiscal year ended December 31, 2014 was $13,537,726 and $
9,520,925 respectively.
The schedule of funding progress for the postemployment defined benefit plan immediately following the notes to the financial statements
presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial
accrued liability for benefits over time.
For employer contributions, the City’s budget policy is to fund pension plans at the funding level recommended annually by the actuary.The
General Fund is used to liquidate the net pension obligation.
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%).
As of December 31, 2014,the City's Fire Pension plan was 47.17% funded.The City's actuarial accrued liability for benefits was
$144,657,092 and the actuarial value of assets was $68,241,712 resulting in an underfunded actuarial accrued liability (UAAL)of
$76,415,380.The covered payroll for the fiscal year ending December 31, 2014 (annual payroll of active employees covered by the Fire
Pension Plan) was $9,520,952 and the ratio of the UAAL to the covered payroll was 802.60%.
- 99 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
G.Police Pension Plan Description
At January 1, 2014, the Police Pension Fund membership consisted of:
Retirees and beneficiaries
currently receiving benefits 179
Terminated employees entitled to
but not yet receiving benefits 6
Current employees 165
Totals 350
Tier 1 ‑Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual
retirement benefit of one half of the salary attached to the rank on the last day of service,or for one year prior to the last day,whichever is
greater.The pension shall be increased by 2.5%of such salary for each additional year of service over 20 years up to 30 years to a maximum
of 75%of such salary.Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a
reduced retirement benefit.The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall
be increased annually,following the first anniversary date of retirement and paid upon reaching at least age 55, by 3%of the original pension
and 3% compounded annually thereafter.
Tier 2 ‑Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly
pension of 2.5%of the final average salary for each year of creditable service.The salary is initially capped at $106,800 but increases
annually thereafter and is limited to 75%of final average salary.Employees with 10 or more years of creditable service may retire at or after
age 50 and receive a reduced retirement benefit.The monthly pension of a police officer shall be increased annually on the January 1
occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later.Each annual increase
shall be calculated at 3% or one‑half the annual unadjusted percentage increase in the 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, 2014,the City's contribution was 63.85%of covered payroll.The schedule of funding
progress,presented as RSI following the notes to the financial statements,presents multi‑year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrual liability for benefits.
As provided for in the Illinois Compiled Statutes, the Police Pension Fund provides 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 Pension Fund as provided for in Illinois Compiled Statutes.
- 100 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
H.Firefighters' Pension Plan Description
At January 1, 2014, the Firefighters’ Pension Plan membership consisted of:
Retirees and beneficiaries
currently receiving benefits 136
Terminated employees entitled to
but not yet receiving benefits 2
Current employees 104
Totals 242
Fire sworn personnel are covered by the Firefighters’Pension Plan, which is a defined benefit single-employer pension plan.Although this is
a single‑employer pension plan,the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes
(Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund.
As provided for in the Illinois Compiled Statutes, the Firefighters'Pension Fund provides 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 Firefighters' Pension Fund 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 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.
Participants contribute a fixed percentage of their base salary to the plans.At December 31, 2014,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 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
Firefighters'Pension Plan is 90% funded by the year 2040.For the year ended December 31, 2014 the City’s contribution was 68.56%of
covered payroll.The schedule of funding progress,presented as RSI following the notes to the financial statements,presents multi‑year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrual liability for
benefits.
- 101 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
I.Summary of Significant Accounting Policies
Police and Firefighters' Pension Plans
J.Net Pension Obligation (Asset)
The following is the net pension obligation (asset) calculation from the December 31, 2014 actuarial reports:
Firefighters’
Police Pension Pension
Annual required contribution
Interest on net pension obligation
Adjustment to annual required contribution
Annual pension cost
Contributions made
Change in net pension obligation (asset)
Net pension obligation (asset), beginning of year
Net pension (asset), end of year
(818,823) (526,067)
$8,257,475 $5,903,483
809,451
Basis of Accounting.The financial statements of the pension fund are prepared using the accrual basis of accounting.Plan member contributions are
recognized in the period in which contributions are due.The Village’s contributions are recognized when due and a formal commitment to provide the
contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.
Method Used to Value Investments.Plan investments are reported at fair value.Short‑term investments are reported at cost,which approximated fair
value. Investments that do not have an established market are reported at estimated fair values.
5,887,612
(8,644,196) (6,527,697)
(396,093) (640,085)
11,991,870 7,558,464
$ 11,595,777 $ 6,918,379
8,248,103
510,196
- 102 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
K.Actuarial Assumptions – Annual Required Contribution
Firefighters'
Police Pension Pension
Actuarial valuation date
Contribution rates:
Employer 68.56%
Employee 9.46%
Annual required contribution $5,903,483
Contributions made $6,527,697
Actuarial cost method Entry‑age normal Entry‑age normal
Asset valuation method Five Year Smoothed Five Year Smoothed
Amortization method Level percentage of payroll Level percentage of payroll
Remaining Amortization Period
Actuarial assumptions:
Annual Investment rate of return 6.75%
Projected salary increases
graded by age From 7.69% to 3.62%From 7.69% to 3.62%
Inflation rate included 2.50%
Cost‑of‑living adjustments 3.00%
L.Five-Year Trend Information – Pension Trust Funds
Fiscal Annual Pension Percentage of Net Pension
Period Ended Cost (APC)APC Contributed Obligation
Police 12/31/14 8,248,103$ 104.80%11,595,777$
12/31/13 8,065,301 104.93%11,991,870
12/31/12 7,610,323 113.71%12,389,793
12/31/11 (10 months)6,283,638 85.40%13,433,187
2/28/11 8,933,767 91.65%12,515,848
Firefighters'12/31/14 5,887,612$ 110.87%6,918,379$
12/31/13 6,011,301 106.11%7,558,464
12/31/12 5,751,374 111.80%7,925,926
12/31/11 (10 months)4,506,075 96.92%8,604,479
2/28/11 7,216,303 92.18%8,465,557
9.91%
63.85%
3.00%
2.50%
6.75%
$8,257,475
$8,644,196
19.5 years (as of
1/1/14)
19.5 years (as of
1/1/14)
The annual required contribution for the current year above was determined by an actuarial valuation performed as December 31, 2014 using
the following actuarial methods and assumptions:
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.
12/31/201412/31/2014
- 103 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
M.Net Pension Liability
Firefighters' Pension
Total pension liability $144,657,092
Plan fiduciary net position 68,241,712
Village’s net pension liability 76,415,380
47.17%
N.Actuarial Assumptions – Total Pension Liability
Actuarial valuation date
Actuarial cost method
Asset valuation method
Actuarial assumptions:
Inflation
Interest rate
Cost‑of‑living adjustments
Five Year Smoothed
52.65%
Plan fiduciary net position as a
percentage of the total pension liability
2.50%
6.75%
3.00%3.00%
6.75%
2.50%
Projected salary increases graded by age From 7.69% to 3.62%
Five Year Smoothed
Entry‑age normal
1/1/2014
Police Pension
$189,324,239
99,687,542
89,636,697
Police Pension
1/1/2014
Firefighters' Pension
From 7.69% to 3.62%
Entry‑age normal
The schedule of changes in the employer’s net pension liability and related ratios,presented as required supplementary information following
the notes to the financial statements,presents multi-year trend information related to the funded status of the Police Pension Fund and
Firefighters’ Pension Fund.
The total pension liability for the current year above was determined by an actuarial valuation performed as December 31, 2014 using the
following actuarial methods and assumptions:
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.
- 104 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
O.Discount Rate
Police Pension Plan
Firefighter’s Pension Plan
P.Discount Rate Sensitivity
1% Decrease
Current Discount
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
The discount rate used to measure the total pension liability for the Police Pension Plan was 6.75%,the same as the prior valuation.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 Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member
rate.Based on those assumptions,the Police Pension Fund’s fiduciary net position was projected 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 was applied to all
periods of projected benefit payments to determine the total pension liability.
The discount rate used to measure the total pension liability for the Firefighters’Pension Plan was 6.75%,the same as the prior valuation.
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 Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the
member rate.Based on those assumptions,the Firefighters’Pension Fund’s fiduciary net position was projected 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 was
applied to all periods of projected benefit payments to determine the total pension liability.
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 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:
- 105 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
Police and Firefighters' Pension Plans – Continued
Q.Pensions - Detailed Statement of Net Position
Firefighters' Police Total
Pension Pension Pension
Assets
Cash and short-term investments 1,988,534$ 2,363,335$ 4,351,869$
Receivables
Accrued interest 125,748 407,390 533,138
Due from city funds 993,502 1,330,683 2,324,185
Total Receivables 1,119,250 1,738,073 2,857,323
Investments, at fair value
U.S. Government and agency obligations 5,263,714 32,742,964 38,006,678
Corporate Bonds 12,224,505 10,467,891 22,692,396
Common Stock 6,166,001 18,550,358 24,716,359
Mutual funds 41,484,694 33,824,921 75,309,615
Total Investments 65,138,914 95,586,134 160,725,048
Total Assets 68,246,698 99,687,542 167,934,240
Liabilities
Vouchers payable 4,986 - 4,986
Net position held in trust for pension benefits 68,241,712$ 99,687,542$ 167,929,254$
- 106 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 16.DEFINED BENEFIT PENSION PLANS - Continued
Police and Firefighters' Pension Plans – Continued
R.Pensions - Detailed Statement of Changes in Net Position
Firefighters' Police Total
Pension Pension Pension
Additions
Contributions
Employer 6,527,697$ 8,644,196$ 15,171,893$
Plan members 919,874 1,565,053 2,484,927
Total Contributions 7,447,571 10,209,249 17,656,820
Investment income
Net appreciation in
fair value of investments 2,561,318 6,307,892 8,869,210
Interest 1,179,581 2,661,220 3,840,801
Total investment income 3,740,899 8,969,112 12,710,011
Less investment expense 191,768 295,677 487,445
Net investment income 3,549,131 8,673,435 12,222,566
Total Additions 10,996,702 18,882,684 29,879,386
Deductions
Benefits 7,727,683 9,776,130 17,503,813
Refunds of contributions - 114,915 114,915
Administrative expense 52,248 67,240 119,488
Total Deductions 7,779,931 9,958,285 17,738,216
Net increase 3,216,771 8,924,399 12,141,170
Net position held in trust for pension benefits
Beginning, 12/31/2013 65,024,941 90,763,143 155,788,084
Ending, 12/31/2014 68,241,712$ 99,687,542$ 167,929,254$
-107 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 17.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, the
Illinois Metropolitan Investment Fund (IMET), and the Illinois Funds.
Library investment consists of Equities,ETFs,Money Market Funds, Mutual Funds,Corporate Bonds,and US
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
investment policy has several guidelines to minimize the potential losses on individual investment by diversifying the
investment portfolio,not permitting the investment in certain hight 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 U.S.
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 City 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, Library has diversified its investments in various type sof investments.The Library investment
policy provides the high/low limits for various type of investments like Equity, Fixed Income Securities and Cash.
- 108 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 17.EVANSTON LIBRARY COMPONENT UNIT - Continued
B.Reconciliation of Cash and Investments
Cash and Equivalents 1,578,810$
Investments 3,451,820
Total per Statement of Position $ 5,030,630
Cash in Bank 1,118,640$
Vanguard Money Market 460,170
Vanguard Equity Mutual Funds 3,451,820
Total Cash and Investments $ 5,030,630
C Summary of Receivables
Receivables:
Property taxes 6,418,643$
Accrued interest 8,741
Net receivables $ 6,427,384
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 - - 18,551,582
Office equipment and furniture 2,285,009 - - 2,285,009
Infrastructure 230,006 - - 230,006
Library collections 8,787,866 238,692 - 9,026,558
Capitalized leases 266,191 - - 266,191
Total capital assets being depreciated/amortized 30,120,654 238,692 - 30,359,346
Less accumulated depreciation/amortization for:
Buildings and improvements 6,998,732 372,050 - 7,370,782
Office equipment and furniture 2,285,009 - - 2,285,009
Infrastructure 66,447 15,334 - 81,781
Library collections 6,740,753 621,273 - 7,362,026
Capitalized leases 266,191 - - 266,191
Total accumulated depreciation/amortization 16,357,132 1,008,657 - 17,365,789
Total capital assets being depreciated/amortized, net 13,763,522 (769,965) - 12,993,557
Library activities capital assets, net 14,074,902$ (769,965) - 13,304,937$
- 109 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2014
NOTE 17.EVANSTON LIBRARY COMPONENT UNIT - Continued
E Long-Term Debt
Final
Interest Maturity Balance Balance Due Within
Rate Date 12/31/2013 Issued Payments 12/31/2014 One Year
General Obligations Debt
Series 2007 4.00%-5.00%12/1/2016 1,356,901$ -$ 200,291$ 1,156,610$ 146,289$
Series 2008D 3.25%-5.00%12/1/2016 532,560 - 344,400 188,160 146,680
Series 2013B 2.00%-3.00%12/1/2025 877,667 - 97,120 780,547 186,967
2,767,128 641,811 2,125,317 479,936
OPEB liability 40,654 16,062 - 56,716 -
Compensated absences payable- City 453,093 231,365 214,921 469,537 178,424
IMRF Pension contributions 302,094 337,529 357,677 281,946 -
Total Long-Term Debt 3,562,969$ 584,956 1,214,409 2,933,516 658,360$
Year Ending
December 31 Principal Interest
2015 479,936$ 80,804$
2016 323,241 62,454
2017 274,011 51,944
2018 166,831 42,907
2019 106,755 36,575
2019-2024 489,854 126,317
2025-2027 284,689 26,605
Total 2,125,317$ 427,606$
The following schedule illustrates the annual debt service requirements to maturity for Library General Obligation Bonds.
- 110 -
REQUIRED SUPPLEMENTARY INFORMATION
- 111 -
CITY OF EVANSTON, ILLINOIS
Firefighters' Pension Fund, Police Pension Fund, Illinois Municipal Retirement Fund and Post Employment Benefits
Schedules of Funding Progress
Required Supplementary Information
UAAL as a
Percentage
Actuarial of Covered
Actuarial Value of Funded Covered Payroll
Valuation Assets Ratio Payroll Under/(Over)
Date (a)(a/b)( c )((b-a)/c)
Firefighters' Pension
1/1/2014 68,241,712$ 144,657,092$ 76,415,380$ 47.17%9,520,925$ 802.60%
1/1/2013 58,476,156 127,764,750 69,288,594 45.77%9,201,691 753.00%
1/1/2012 55,082,975 121,693,417 66,610,442 45.26%8,543,980 779.62%
3/1/2011 54,214,525 119,011,406 64,796,881 45.55%7,736,550 837.54%
3/1/2010 52,021,778 129,493,139 77,471,361 40.17%9,133,000 848.26%
3/1/2009 49,410,755 119,852,896 70,442,141 41.23%9,242,000 762.20%
3/1/2008 47,006,917 111,696,236 64,689,319 42.08%8,999,000 718.85%
3/1/2007 43,742,297 106,361,853 62,619,556 41.13%8,402,000 745.29%
3/1/2006 40,653,428 84,413,071 43,759,643 48.16%8,150,000 536.93%
3/1/2005 38,327,422 78,759,019 40,431,597 48.66%7,684,000 526.18%
Police Pension
1/1/2014 99,687,542$ 189,324,239$ 89,636,697$ 52.65%13,537,726$ 662.13%
1/1/2013 78,658,837 169,353,377 90,694,540 46.45%12,499,170 725.60%
1/1/2012 72,266,706 158,457,577 86,190,871 45.61%14,018,048 614.86%
3/1/2011 71,478,229 156,201,256 84,723,027 45.76%11,502,613 736.55%
3/1/2010 68,998,555 166,228,478 97,229,923 41.51%13,117,000 741.25%
3/1/2009 66,514,296 154,971,310 88,457,014 42.92%12,632,549 700.23%
3/1/2008 64,355,651 145,458,945 81,103,294 44.24%12,142,000 667.96%
3/1/2007 61,795,438 139,371,086 77,575,648 44.34%11,522,000 673.28%
3/1/2006 58,400,853 112,448,880 54,048,027 51.94%11,195,000 482.79%
3/1/2005 55,269,914 106,426,694 51,156,780 51.93%10,642,000 480.71%
Illinois Municipal Retirement Fund (City)
12/31/2014 86,088,419$ 101,826,526$ 15,735,107$ 84.55%35,379,772$ 44.47%
12/31/2013 78,823,691 92,222,299 13,398,608 85.47%33,484,947 40.01%
12/31/2012 69,218,573 89,116,813 19,898,240 77.67%33,025,074 60.25%
12/31/2011 65,199,440 86,311,655 21,112,215 75.54%32,270,312 65.42%
12/31/2010 61,673,349 80,396,511 18,723,162 76.71%32,163,415 58.21%
12/31/2009 50,465,714 79,011,161 28,545,447 63.87%33,485,370 85.25%
12/31/2008 44,075,583 72,888,719 28,813,136 60.47%34,189,216 84.28%
12/31/2007 88,101,956 84,705,898 (3,396,058) 104.01%34,496,585 (9.84%)
12/31/2006 87,758,900 82,928,874 (4,830,026) 105.82%32,625,369 (14.80%)
12/31/2005 82,368,849 79,384,403 (2,984,446) 103.76%31,403,514 (9.50%)
Illinois Municipal Retirement Fund (Township)
12/31/2014 The townships was absorbed into the City of Evanston as of 5/1/2014.
12/31/2013 501,694$ 470,077$ (31,617)$ 106.73%325,630$ (9.71%)
12/31/2012 393,759 495,178 101,419 79.52%348,889 29.07%)
12/31/2011 291,690 279,973 (11,717) 104.19%358,316 (3.27%)
12/31/2010 331,048 305,956 (25,092) 108.20%334,330 (7.51%)
12/31/2009 476,660 380,918 (95,742) 125.13%330,215 (28.99%)
12/31/2008 405,691 317,964 (87,727) 127.59%261,152 (33.59%)
12/31/2007 612,352 360,059 (252,293) 170.07%338,122 (74.62%)
12/31/2006 514,875 321,366 (193,509) 160.21%344,707 (56.14%)
12/31/2005 413,112 253,244 (159,868) 163.13%314,044 (50.91%)
Post Employment Benefits other than Pension
12/31/2014 -$ 15,789,873$ 15,789,873$ -53,652,399$ 29.43%
12/31/2013 - 15,870,326 15,870,326 -45,455,695 34.91%
12/31/2012 - 17,294,689 17,294,689 -49,784,920 34.74%
12/31/2011 - 16,994,544 16,994,544 -48,101,372 35.33%
3/1/2010 - 12,259,348 12,259,348 -51,896,579 23.62%
3/1/2009 - 11,762,298 11,762,298 -50,141,622 23.46%
3/1/2008 - 7,634,991 7,634,991 -50,230,393 15.20%
3/1/2007 - 7,254,074 7,254,074 -48,531,780 14.95%
Note: See notes to Required Supplementary Information and Auditors' Report.
December 31, 2014
Actuarial Accrued
Liability (AAL)
Projected Unit Credit
(b)
Unfunded
AAL
(UAAL)
(b-a)
- 112 -
CITY OF EVANSTON, ILLINOIS
Firefighters and Police Pension Funds
Schedules of Employer Contribution
Required Supplementary Information
Annual Annual
Tax Levy Required City's Percentage Required City's Percentage
Year Contribution Contribution Contributed Contribution Contribution Contributed
2013 5,865,595$ 6,527,697$ 111.29%8,213,172$ 8,644,196$ 105.25%
2012 6,028,078 6,378,763 105.82%8,091,526 8,463,224 104.59%
2012 5,729,977 6,429,927 112.22%7,576,919 8,653,717 114.21%
2011 4,468,888 4,367,153 97.72%6,232,638 5,366,299 86.10%
2010 7,148,759 5,937,637 83.06%8,831,924 7,254,351 82.14%
2009 5,828,112 5,937,637 101.88%7,081,620 7,254,351 102.44%
2008 5,486,699 5,217,187 95.09%6,659,960 6,345,667 95.28%
2007 4,174,271 6,139,178 147.07%4,636,539 7,717,650 166.45%
2006 3,921,530 3,867,153 98.61%4,301,359 4,217,457 98.05%
2005 3,317,158 3,459,626 104.29%4,071,765 4,295,601 105.50%
2004 3,041,911 3,398,340 111.72%4,274,043 4,271,102 99.93%
Note: See notes to Required Supplementary Information and Auditors' Report.
Firefighters' Pension Fund Police Pension Fund
December 31, 2014
- 113 -
Calendar year ending December 31, 2014
Total pension liability
Service cost 3,439,223$
Interest Changes of benefit terms 12,284,036
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 (a)189,324,239$
Plan fiduciary net position
Employer contributions 8,644,196$
Employee contributions 1,565,053
Net investment income 8,675,133
Benefit payments, including refunds of member contriutions (9,891,045)
Administration (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 (b)99,687,542$
City's net pension liability - ending (a) - (b)89,636,697$
Plan fiduciary net position as a percentage of the total
pension liability 52.65%
Covered-employee payroll 13,537,726$
City's net pension liability as a percentage of covered-
employee payroll 662.13%
Notes to Schedule:
Note: See Notes to Required Supplementary Information and Auditors' Report.
The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available.
CITY OF EVANSTION, ILLINOIS
Police Pension Fund
Schedule of Changes in the City's Net Pension Liability and Related Ratios
December 31, 2014
Last 10 Calendar Years
(Schedule to be built prospectively from 2014)
- 114 -
Calendar year ending December 31, 2014
Total pension liability
Service cost 2,326,092$
Interest Changes of benefit terms 9,391,253
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 (a)144,657,092$
Plan fiduciary net position
Employer contributions 6,527,697$
Employee contributions 919,874
Net investment income 3,549,131
Benefit payments, including refunds of member contriutions (7,727,683)
Administration (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 (b)68,241,712$
City's net pension liability - ending (a) - (b)76,415,380$
Plan fiduciary net position as a percentage of the total
pension liability 47.17%
Covered-employee payroll 9,520,925$
City's net pension liability as a percentage of covered-
employee payroll 802.60%
Notes to Schedule:
Note: See Notes to Required Supplementary Information and Auditor's Report.
December 31, 2014
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Firefighters' Pension Fund
CITY OF EVANSTON, ILLINOIS
(Schedule to be built prospectively from 2014)
The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available.
Last 10 Calendar Years
- 115 -
(Schedule to be built prospectively from 2014)
Calendar Year Actuarially Contribution *Covered Actual Contribution
Ending Determined Actual Deficiency Valuation as a % of
December 31, Contribution Contribution (Excess)Payroll Covered Valuation Payroll
2014 8,257,475$ 8,644,196$ (386,721)$ 13,537,726$ 63.85%
Calendar Year Actuarially Contribution *Covered Actual Contribution
Ending Determined Actual Deficiency Valuation as a % of
December 31, Contribution Contribution (Excess)Payroll Covered Valuation Payroll
2014 5,903,483$ 6,527,697$ (624,214)$ 9,520,925$ 68.56%
*Covered valuation payroll is estimated based on the best available information at the time of the valuation.
Other information:
The mortality tables used for the valuation were updated as of December 31, 2014.
See Pension Notes to Contributions for Summary of Actuarial Methods and Assumptions.
Note: See Notes to Required Supplementary Information and Auditors' Report.
The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available.
CITY OF EVANSON, ILLINOIS
Pension Funds
Schedule of Employer Contributions
December 31, 2014
Last 10 Calendar Years
Police Pension Fund
Fire Pension Fund
- 116 -
Notes to Schedule of Contributions:
Valuation Dates:
Police and Fire Pension The total pension liability was determined by an actuarial valuation as of January 1, 2014 updated
to December 31, 2014.
The following actuarial assumptions were used by the plans:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases graded by age
Investment rate of return
Mortality
6.75% per annum
Mortality rates were based on the RP-2000
Mortality Table
5-year smoothed market
2.50%
7.69% to 3.62% at age 55 and later
Entry Age Normal
Level dollar amortization
27
CITY OF EVANSTON, ILLINOIS
Pension Funds
Notes to Schedule of Contributions
As of December 31, 2014
Police and Fire
- 117 -
(Schedule to be build prospectively from 2014)
As of December 31, 2014
Police Pension Fund 9.54%
Firefighters' Pension Fund 5.47%
Notes to Schedule:
Annual money-weighted rate of return, net of investment expense
Note: See Notes to Required Supplementary Information and Auditors' Report.
The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
CITY OF EVANSTON, ILLINOIS
Pension Funds
Schedule of Investment Returns
Last 10 Calendar Years
- 118 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
Required Supplementary Information
For the Fiscal Year ended December 31, 2014
Original &
Final Budget Actual Variance
Revenues
Taxes 37,781,439$ 37,376,358$ (405,081)$
Licenses and permits 12,616,032 14,503,168 1,887,136
Intergovernmental 17,545,442 17,964,980 419,538
Charges for services 7,819,807 7,792,469 (27,338)
Fines 4,366,022 3,357,965 (1,008,057)
Investment income 10,000 13,037 3,037
Miscellaneous 2,120,684 1,138,650 (982,034)
Total Revenues 82,259,426 82,146,627 (112,799)
Expenditures
General management and support 11,774,101 11,642,286 131,815
Public safety 42,232,574 43,013,173 (780,599)
Public works 17,199,010 17,398,563 (199,553)
Health and human resource development 3,985,904 3,836,705 149,199
Recreation and cultural opportunities 9,786,537 10,486,537 (700,000)
Housing and economic development 2,707,545 2,627,187 80,358
Total Expenditures 87,685,671 89,004,451 (1,318,780)
(Deficiency) of Revenues (under) Expenditures (5,426,245)(6,857,824)(1,431,579)
Other Financing Sources (Uses)
Operating transfers in (out)
West Evanston TIF 60,000 60,000 -
Motor Fuel Tax Fund 833,000 833,000 -
Economic Development Fund 452,707 452,707 -
Housing Fund 13,990 13,990 -
Washington National TIF Debt Service Fund 331,000 331,000 -
Howard Hartrey Debt Service 144,400 144,400 -
Southwest TIF I Debt Service Fund 29,500 29,500 -
NSP 2 30,000 46,779 16,779
Emergency Telephone System Fund 125,950 125,950 -
Parking Fund 869,242 869,242 -
Sewer Fund 145,044 145,044 -
Howard Ridge TIF 60,000 60,000 -
Capital Improvement Fund 475,000 475,000 -
Water Fund 3,369,559 3,369,559 -
Solid Waste (1,055,967) (1,055,967) -
Debt Service Fund (609,000) (609,000) -
Capital Improvement Fund (936,500) (936,500) -
4,337,925 4,354,704 16,779
Net Change in Fund Balance (1,088,320)$ (2,503,120)(1,414,800)$
Fund Balance
Beginning 26,709,639
Ending 24,206,519$
Note: See notes to Required Supplementary Information and Auditors' Report.
- 119 -
CITY OF EVANSTON, ILLINOIS
Notes to the Required Supplementary Information
NOTE 1.DIGEST OF CHANGES - IMRF
The principal changes were:
- There were no benefit changes for the year.
NOTE 2. CONVERSION FROM GAAP BASIS TO BUDGETARY BASIS
General
Fund
Revenues
GAAP basis revenues as reported in the
Combined Statement of Revenues,
Expenditures, and Changes in Fund Balances 82,992,422$
Increase (decrease) due to budgeting
property taxes as revenue in the year of levy (845,795)
Budgetary Basis Revenues 82,146,627$
Expenditures
GAAP basis expenditures as reported in the
Combined Statement of Revenues,
Expenditures, and Changes in Fund Balances 89,004,451$
Increase (decrease) due to changes in Emcumbrances -
Budgetary Basis Expenditures 89,004,451$
Note: See Auditors' Report.
The actuarial assumptions used to determine the actuarial accrued liability for 2014 were based
on the 2011 valuation pursuant to an experience study of the period 2008-2010.
Adjustments necessary to convert City revenues and expenditures for the fiscal year ended
December 31, 2014 on the GAAP basis to the budgetary basis are presented below:
- RP-2000 Combined Healthy Mortality Table, adjusted for mortality imprvements to 2020
using projection scale AA.
- 120 -
Continued
Affordable Housing - to account for costs associated with housing-related programs of the City.
Community Development Loan - to account for residential rehabilitation loans to residents.
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.
Economic Development -to account for 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 is provided by network connection surcharges.
Nonmajor Governmental Funds
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for
particular purposes.
Motor Fuel Tax -to account for the operation of street maintenance programs and capital projects as authorized
by the Illinois Department of Transportation. Financing is provided from the City's share of gasoline taxes.
Community Development Block Grant -to account for revenues and expenditures of the community block grant
program.Financing is provided by the federal government on a reimbursement basis in accordance with federal
formula. Expenditures are made in accordance with requirements of federal law.
Special Service District No.4 -to account for promotion,advertisement,and street maintenance costs of the area
located in the City's central business district.Financing is provided by the City through an annual property tax
levy.
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.
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.
General Assistance -to account for the assistance given to persons and/or families to meet their basic living
expenses.
Town - to account for general administrative services.
- 121 -
Concluded
Debt Service funds are used to account for the servicing of general long-term debt.
Debt Service Funds
Special Revenue Funds - Continued
Washington National Tax Increment District -accumulated monies for the principal and interest payments on debt
issued for this special taxing district.
Howard Ridge Tax Increment District -accumulated monies for the payments on redevelopment project for this
special taxing district.
Special Service District No.5 -accumulated monies for the principal and interest payments on unlimited ad
valorem tax bonds issued for this special taxing district.
Special Assessment -to account for capital improvements financed by special assessments on property holder and
public benefit contributions from the City.
Capital Projects Funds
Capital projects are used to account for the acquisition and construction of major capital facilities other than those
financed by proprietary funds and trust funds.
West Evanston Tax Increment District -accumulated monies for the payments on redevelopment project for this
special taxing district.
Southwest Tax Increment District -accumulated monies for the principal and interest payments on debt issued for
this special taxing district.
Howard Hartrey Tax Increment District -accumulated monies for the principal and interest payments on debt
issued for this special taxing district.
- 122 -
CITY OF EVANSTON, ILLINOIS
Nonmajor Governmental Funds
Combining Balance Sheet
Emergency
Motor Economic Telephone Neighborhood Affordable
Fuel Tax Development System Improvement Housing HOME
Cash and equivalents 2,306,667$ 3,122,900$ 629,911$ 149,915$ 489,672$ 6,679$
Investments - - - - 363,495 -
Restricted Cash - - - - - -
Receivables
Property taxes (net of allowance)
Current year levy - - - - - -
Notes - - - - 1,563,450 4,530,261
Allowance - - - - - -
Special assessments - - - - - -
Other - 585,752 191,665 - 152,490 -
Due from other governments 187,573 - - - - 97,977
Due from component unit - 9,900 - - - -
Due from other funds - 1,544 143,755 20,000 10,000 -
Total Assets 2,494,240$ 3,720,096$ 965,331$ 169,915$ 2,579,107$ 4,634,917$
Liabilities
Vouchers payable -$ 70,646$ 45,028$ -$ 17,500$ 47,752$
Due to other governments - - - - - -
Due to other funds 69,417 108,980 11,950 - 14,687 7,086
Total Liabilities 69,417 179,626 56,978 - 32,187 54,838
Deferred Inflows of Resources
Property taxes 644,792 - - - - -
Fund Balances
Restricted
Highway maintenance 1,780,031 - - - - -
Emergency telephone system - - 908,353 - - -
HUD approved projects - - - - - 4,580,079
Neighborhood improvements - - - 169,915 2,546,920 -
Debt service - - - - - -
Township - - - - - -
Impaired investment - - - - - -
Committed - Economic Development - 3,540,470 - - - -
Assigned - - - - - -
Unassigned (deficit)- - - - - -
Total Fund Balances (Deficit)1,780,031 3,540,470 908,353 169,915 2,546,920 4,580,079
Total Liabilities, Deferred Inflows
and Fund Balances 2,494,240$ 3,720,096$ 965,331$ 169,915$ 2,579,107$ 4,634,917$
As of December 31, 2014
Assets
Liabilities, Deferred Inflows,
and Fund Balances
- 123 -
Special
Community Community Neighborhood Service Total
Development Development Stabilization District General Special
Block Grant Loan Program 2 No. 4 Town Assistance Revenue
98,106$ 126,267$ 220,899$ 10,961$ -$ 172,275$ 7,334,252$
- - - - - - 363,495
- - - - - -
- - - 320,000 - 1,348,553 1,668,553
184,902 2,307,999 - - - - 8,586,612
- (78,000) - - - - (78,000)
- - - - - - -
- - - - - - 929,907
247,165 - 987 - - - 533,702
- - - - - 9,900
178 21,130 - - - - 196,607
530,351$ 2,377,396$ 221,886$ 330,961$ -$ 1,520,828$ 19,545,028$
47,492$ 25,300$ 195$ -$ -$ 48,516$ 302,429$
- 183 209,925 - - - 210,108
297,957 1,252 11,766 200,000 - 164,042 887,137
345,449 26,735 221,886 200,000 - 212,558 1,399,674
- - - 284,326 - 1,125,171 2,054,289
- - - - - - 1,780,031
- - - - - - 908,353
184,902 2,350,661 - - - - 7,115,642
- - - - - - 2,716,835
- - - - - - -
- - - - - 183,099 183,099
- - - - - - -
- - - - - - 3,540,470
- - - - - - -
- - - (153,365) - - (153,365)
184,902 2,350,661 - (153,365) - 183,099 16,091,065
530,351$ 2,377,396$ 221,886$ 330,961$ -$ 1,520,828$ 19,545,028$
Continued
Special Revenue
- 124 -
CITY OF EVANSTON, ILLINOIS
Nonmajor Governmental Funds
Combining Balance Sheet - Continued
As of December 31, 2014
Howard Washington Howard
Special Southwest Hartrey National Ridge
Service Tax Tax Tax Tax
District Increment Increment Increment Increment
No.5 District District District District
Cash and equivalents 400,694$ 911,477$ 2,305,980$ 5,697,176$ 59,818$
Investments - - - - -
Restricted cash - - 59,902 77,408 2,226
Receivables
Property taxes (net of allowance)
Current year levy 428,745 596,020 1,140,311 4,945,321 438,854
Notes - - - - -
Allowance - - - - -
Special assessments - - - - -
Other - - - - -
Due from other governments - - - - -
Due from component unit - - - - -
Due from other funds - - - - 2,979
Total Assets 829,439$ 1,507,497$ 3,506,193$ 10,719,905$ 503,877$
Liabilities
Vouchers payable -$ 15,354$ -$ 35,000$ 1,083$
Due to other governments - - - - -
Due to other funds - 2,458 12,033 71,358 9,132
Total Liabilities - 17,812 12,033 106,358 10,215
Deferred Inflows of Resources
Property taxes 365,393 596,020 1,124,677 4,426,843 198,543
Fund Balances
Restricted
Highway maintenance - - - - -
Emergency telephone system - - - - -
HUD approved projects - - - - -
Neighborhood improvements - - - - -
Debt service 464,046 893,665 2,309,581 6,109,296 292,893
Township - - - - -
Impaired investment - - 59,902 77,408 2,226
Committed - Economic Development - - - - -
Assigned - - - - -
Unassigned (deficit)- - - - -
Total Fund Balances (Deficit)464,046 893,665 2,369,483 6,186,704 295,119
Total Liabilities and Fund Balances 829,439$ 1,507,497$ 3,506,193$ 10,719,905$ 503,877$
Debt Service
Assets
Liabilities, Deferred Inflows,
and Fund Balances
- 125 -
West
Evanston Special Total
Tax Total Assessment Nonmajor
Increment Debt Capital Governmental
District Service Projects Funds
560,208$ 9,935,353$ 2,536,992$ 19,806,597$
- - - 363,495
8,162 147,698 3,549 151,247
- 7,549,251 - 9,217,804
- - - 8,586,612
- - - (78,000)
- - 425,314 425,314
- - 4,025 933,932
- - - 533,702
- - - 9,900
- 2,979 9,121 208,707
568,370$ 17,635,281$ 2,979,001$ 40,159,310$
63,000$ 114,437$ 23,847$ 440,713$
- - - 210,108
5,000 99,981 14,146 1,001,264
68,000 214,418 37,993 1,652,085
- 6,711,476 422,440 9,188,205
- - - 1,780,031
- - - 908,353
- - - 7,115,642
- - - 2,716,835
492,208 10,561,689 - 10,561,689
- - - 183,099
8,162 147,698 3,549 151,247
- - - 3,540,470
- - 2,515,019 2,515,019
- - - (153,365)
500,370 10,709,387 2,518,568 29,319,020
568,370$ 17,635,281$ 2,979,001$ 40,159,310$
Concluded
- 126 -
CITY OF EVANSTON, ILLINOIS
Nonmajor Governmental Funds
For the Fiscal Year ended December 31, 2014
Emergency
Motor Economic Telephone Neighborhood Affordable
Fuel Tax Development System Improvement Housing HOME
Revenues
Taxes -$ 1,913,372$ 939,451$ 20,000$ 30,000$ -$
Special assessments - - - - - -
Intergovernmental 2,194,015 - - - - 932,839
Investment income 277 60 99 - 256 6,465
Net Change in FMV of Investments - - - - - -
Miscellaneous - 2,771 1,751 - 160,525 -
Total Revenues 2,194,292 1,916,203 941,301 20,000 190,781 939,304
Expenditures
Current
General management and support - - - - - -
Public safety - - 1,127,877 - - -
Public works 893,829 - - - - -
Housing and economic development - 1,475,728 - - 80,949 301,753
Debt service
Principal - - - - - -
Interest - - - - - -
Total Expenditures 893,829 1,475,728 1,127,877 - 80,949 301,753
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,300,463 440,475 (186,576) 20,000 109,832 637,551
Other Financing Sources (Uses)
Issuance of debt - - - - - -
Premiums and discounts - - - - - -
Transfers in (out)
General (833,000) (452,707) (125,950) - (13,990) -
General Obligation Debt Service - - - - - -
Economic Development - - - - - -
Howard Ridge Tax Increment District - 45,500 - - - -
Motor Vehicle Parking System - - - - - -
Total Other Financing Sources (Uses)(833,000) (407,207) (125,950) - (13,990) -
Net Change in Fund Balances 467,463 33,268 (312,526) 20,000 95,842 637,551
Fund Balances (Deficit) - Beginning 1,312,568 3,507,202 1,220,879 149,915 2,451,078 3,942,528
Fund Balances (Deficit) - Ending 1,780,031$ 3,540,470$ 908,353$ 169,915$ 2,546,920$ 4,580,079$
Combining Statements of Revenues, Expenditures, and Changes in Fund Balances
- 127 -
Special Revenue
Special
Community Community Neighborhood Service Total
Development Development Stabilization District General Special
Block Grant Loan Program 2 No. 4 Town Assistance Revenue
-$ -$ -$ 315,967$ 113,096$ 1,003,243$ 4,335,129$
- - - - - - -
1,571,403 100 1,149,489 - - - 5,847,846
- 5,494 - 3 10 97 12,761
- - - - - -
13,196 - - - - 32,557 210,800
1,584,599 5,594 1,149,489 315,970 113,106 1,035,897 10,406,536
- - 117,088 - 50,794 1,443,292 1,611,174
- - - - - - 1,127,877
- - - - - - 893,829
1,412,496 9,204 985,622 320,000 - - 4,585,752
- - - - - - -
- - - - - - -
1,412,496 9,204 1,102,710 320,000 50,794 1,443,292 8,218,632
172,103 (3,610) 46,779 (4,030) 62,312 (407,395) 2,187,904
- - - - - - -
- - - - - - -
- - (46,779) - (277,340) - (1,749,766)
- - - - - - -
- - - - - - -
- - - - - - 45,500
- - - - - - -
- - (46,779) - (277,340) - (1,704,266)
172,103 (3,610) - (4,030) (215,028) (407,395) 483,638
12,799 2,354,271 - (149,335) 215,028 590,494 15,607,427
184,902$ 2,350,661$ -$ (153,365)$ -$ 183,099$ 16,091,065$
Continued
- 128 -
CITY OF EVANSTON, ILLINOIS
Nonmajor Governmental Funds
For the Fiscal Year ended December 31, 2014
Howard Washington Howard
Special Southwest Hartrey National Ridge
Service Tax Tax Tax Tax
District Increment Increment Increment Increment
No.5 District District District District
Revenues
Taxes 431,205$ 596,020$ 1,140,311$ 5,080,645$ 673,244$
Special assessments - - - - -
Intergovernmental - - - - -
Investment income 6 6 13,819 13,420 211
Net Change in FMV of Investments - - (52,064) (67,280) (1,935)
Miscellaneous - - - - 61,932
Total Revenues 431,211 596,026 1,102,066 5,026,785 733,452
Expenditures
Current
General management and support - - - - -
Public safety - - - - -
Public works - - - - -
Housing and economic development - 17,578 1,221,143 111,226 721,450
Debt service
Principal 380,000 - 685,000 455,000 -
Interest 62,050 - 39,088 55,000 -
Total Expenditures 442,050 17,578 1,945,231 621,226 721,450
Excess (Deficiency) of Revenues
Over (Under) Expenditures (10,839) 578,448 (843,165) 4,405,559 12,002
Other Financing Sources (Uses)
Issuance of debt - - - - -
Premiums and discount - - - - -
Transfers in (out)
General - (29,500) (144,400) (331,000) (60,000)
General Obligation Debt Service - - - - -
Economic Development - - - - (45,500)
Howard Ridge Tax Increment District - - - - -
Motor Vehicle Parking System - - - (2,925,296) -
Total Other Financing Sources (Uses)- (29,500) (144,400) (3,256,296) (105,500)
Net Change in Fund Balances (10,839) 548,948 (987,565) 1,149,263 (93,498)
Fund Balances (Deficit) - Beginning 474,885 344,717 3,357,048 5,037,441 388,617
Fund Balances (Deficit) - Ending 464,046$ 893,665$ 2,369,483$ 6,186,704$ 295,119$
Debt Service
Combining Statements of Revenues, Expenditures, and Changes in Fund Balances - Continued
- 129 -
West
Evanston Special Total
Tax Total Assessment Nonmajor
Increment Debt Capital Governmental
District Service Projects Funds
-$ 7,921,425$ -$ 12,256,554$
- - 167,382 167,382
- - - 5,847,846
764 28,226 2,849 43,836
(7,095) (128,374) (3,084) (131,458)
100,262 162,194 28 373,022
93,931 7,983,471 167,175 18,557,182
- - 621 1,611,795
- - - 1,127,877
- - 53,738 947,567
64,173 2,135,570 - 6,721,322
- 1,520,000 - 1,520,000
7,027 163,165 - 163,165
71,200 3,818,735 54,359 12,091,726
22,731 4,164,736 112,816 6,465,456
- - 450,000 450,000
- - 53,185 53,185
(60,000) (624,900) - (2,374,666)
- - (169,848) (169,848)
- (45,500) - (45,500)
- - - 45,500
- (2,925,296) - (2,925,296)
(60,000) (3,595,696) 333,337 (4,966,625)
(37,269) 569,040 446,153 1,498,831
537,639 10,140,347 2,072,415 27,820,189
500,370$ 10,709,387$ 2,518,568$ 29,319,020$
Concluded
- 130 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Taxes
Property
Current Year Levy 12,031,386$ 11,089,952$ (941,434)$
Prior Year Levy 240,000 457,876 217,876
Total Property Taxes 12,271,386 11,547,828 (723,558)
Personal Property Replacement Tax 598,300 793,445 195,145
Other Taxes
State Use Tax 1,241,753 1,455,198 213,445
Sales Tax - Home Rule 6,100,000 6,102,969 2,969
Auto Rental Tax 40,000 49,018 9,018
Athletic Contest Tax 800,000 1,032,080 232,080
Utility Tax 8,220,000 7,677,852 (542,148)
Cigarette Tax 300,000 222,000 (78,000)
Evanston Motor Fuel Tax 610,000 722,276 112,276
Liquor Tax 2,375,000 2,665,447 290,447
Parking Tax 2,350,000 2,565,189 215,189
Real Estate Transfer Tax 2,875,000 2,543,056 (331,944)
Total Other Taxes 24,911,753 25,035,085 123,332
Total Taxes 37,781,439 37,376,358 (405,081)
- 131 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
License and Permits
Vehicle Licenses 2,700,000$ 2,461,880$ (238,120)$
Business Licenses 50,000 109,099 59,099
Bed & Breakfast License - 75 75
Collection Box License - 2,444 2,444
Pet Licenses 25,000 28,279 3,279
Contractor Licenses 77,302 93,750 16,448
Rooming House Licenses 193,000 165,741 (27,259)
Liquor Licenses 330,000 473,788 143,788
One Day Liquor Licenses 8,200 12,127 3,927
Farmer's Market Licenses 39,800 41,449 1,649
Rental Building Register 95,000 123,369 28,369
Other Licenses 20,000 21,017 1,017
Long Term Care License 98,400 88,740 (9,660)
Seasonal Food estb - 10,650 10,650
Hen coop license - 878 878
Resident Care Home License 600 820 220
Building Permits 6,142,162 7,113,065 970,903
Plumbing Permits 184,842 300,200 115,358
Electrical Permits 177,996 311,085 133,089
Signs and Awnings 8,330 5,794 (2,536)
Other / Misc Permits 250,920 452,992 202,072
Elevator Permits 51,550 35,739 (15,811)
Heating Vent / AC Permits 287,532 609,769 322,237
Right of Way Permits 290,000 354,616 64,616
Residents Parking Permit 128,000 118,227 (9,773)
Visitor Parking Permit 12,300 14,646 2,346
Fire suppression / Alarm Permit 88,998 77,026 (11,972)
Annual Sign Fees 25,000 33,853 8,853
Moving Van Permit 50,000 18,000 (32,000)
Plat PR. & Sign Approval HRG Fees 2,100 1,925 (175)
Alarm Panel Franchise Fee 6,000 12,250 6,250
Northwestern / Centel Easement - 47,000 47,000
Cable Franchise Fee 1,078,000 1,173,914 95,914
PEG Fees - Comcast 130,000 131,577 1,577
Nicor Franchise Fee 65,000 57,384 (7,616)
Total Licenses and Permits 12,616,032 14,503,168 1,887,136
- 132 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Intergovernmental - Revenue from
Other Agencies
Retailer and Service Occupation Tax 9,690,000$ 9,803,582$ 113,582$
State Income Tax 7,076,170 7,053,978 (22,192)
State Highway Maintenance 58,000 66,196 8,196
Health Department Basic Serv. Grant 76,000 76,181 181
Summer Food Inspections 400 1,000 600
Illinois Tobacco Free Community 31,027 19,694 (11,333)
IL HIV Surveillance Grant - 1,228 1,228
Childhood Lead Poisoning Grant 1,000 2,250 1,250
Other State / County Grant 11,000 393,026 382,026
Tanning Parlor Inspection 300 200 (100)
Violence Crime Victim Asst. Grant 18,525 - (18,525)
Fire Department Training 3,000 13,069 10,069
CRI Grant 43,700 47,707 4,007
PHEP Grant 61,200 63,120 1,920
Leadbase Paint Control Grant 100,000 20,000 (80,000)
Federal Grant / Aid 10,000 52,837 42,837
Commission on Aging Grant - Advocate 86,970 71,967 (15,003)
IL Vacant Property Grant - 2,530 2,530
Civil Defence Grants (F.E.M.A.)17,000 1,928 (15,072)
Police Training 8,000 12,583 4,583
HUD Emergency Shelter Grant 104,000 175,757 71,757
Other Federal Aid 9,150 10,526 1,376
Youth Organization Umbrella Grant 40,000 34,405 (5,595)
RTA Grant 100,000 41,216 (58,784)
from Other Agencies 17,545,442 17,964,980 419,538
Charges for Services
Recreation
Recreation - program 5,392,571 5,188,767 (203,804)
Recreation - charges - 5,202 5,202
Recreation - deferral - 145,774 145,774
Recreation - unreconciled 25,000 20,665 (4,335)
Total Recreation Revenue 5,417,571 5,360,408 (57,163)
Total Intergovernmental - Revenue
- 133 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Charges for Services
Other Service Charges
Birth and Death Records -$ 12,640$ 12,640$
Health Service Charges - Other Agencies - 109 109
Sanitation Classes 1,700 640 (1,060)
Health Clinic Fees - Food Establishment 185,000 102,476 (82,524)
Temporary License Fee 7,000 9,880 2,880
Food Delivery Vehicle 5,500 1,434 (4,066)
Beverage Snack Vending Machine 28,000 12,924 (15,076)
Tobacco License 19,000 7,925 (11,075)
BeeKeeper Licenses - 148 148
Birth Certificate 70,000 62,559 (7,441)
Death Certificate 30,000 27,550 (2,450)
Funeral Director License 6,000 2,979 (3,021)
Temp Funeral Direct License 4,200 4,628 428
Parking Meter Fee Increase 641,667 641,667 -
Weights & Measures Examinations 1,000 1,582 582
Senior Taxi Coupon Sales 108,000 85,284 (22,716)
Fire Cost Recovery Charge 10,000 2,240 (7,760)
Other Services Charges 13,521 17,313 3,792
Historic Preservation 6,500 10,242 3,742
Tree Preservation Revenue - 5,440 5,440
Ambulance Service 1,052,400 1,146,476 94,076
Towing Charges 3,000 - (3,000)
Police Report Fees 14,500 23,120 8,620
Wood Recycling 35,000 27,760 (7,240)
Zoning Fees 40,000 56,656 16,656
Fire Building inspections 6,000 8,750 2,750
Alarm Panel Subscription Fees 90,000 132,044 42,044
Skokie Animal Board Fee 8,000 2,740 (5,260)
Background check Daycare Prov.- 438 438
New Pavement Degradation 10,000 16,054 6,054
I Heart Evanston Trees Project - 1,436 1,436
Miscellaneous - (35) (35)
Plan Review 6,248 6,962 714
Total Other Service Charges 2,402,236 2,432,061 29,825
Total Charges For Services 7,819,807 7,792,469 (27,338)
- 134 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Fines
Ticket Fines - Parking 3,450,000$ 2,459,142$ (990,858)$
Regular Fines 298,449 98,805 (199,644)
Animal Ordinance Penalties - 6,984 6,984
Boot Release Fee 80,000 27,625 (52,375)
Fire False Alarm Fines 170,000 69,247 (100,753)
Police CTA Detail - 331,349 331,349
Police DUI Reimbursement - 1,053 1,053
Police False Alarm Fines - 35,220 35,220
Housing Code Violation Fines 97,248 73,628 (23,620)
Permit Penalty Fees 7,500 10,338 2,838
Administrative Adjudication Fine 262,825 244,574 (18,251)
Total Fines 4,366,022 3,357,965 (1,008,057)
Interest income 10,000 13,037 3,037
Miscellaneous
Charges to Other Funds
Recreation restricted accts 78,716 49,429 (29,287)
From Library Fund 210,000 217,516 7,516
Community Development Fund 571,000 589,531 18,531
Home Fund 22,500 17,922 (4,578)
Total Charges To Other Funds 882,216 874,398 (7,818)
- 135 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Miscellaneous
Other Revenues
Women Out Walking 5,000$ 4,143$ (857)$
Property Sales and Rentals 108,968 55,325 (53,643)
Donation 32,000 13,169 (18,831)
Berglund Animal Hospital Parking - 2,400 2,400
Damage to City Signage 2,000 - (2,000)
Damage to City traffic Signal 20,000 - (20,000)
Damage to Street Lights 20,000 - (20,000)
Miscellaneous Revenue 155,000 398,894 243,894
Taxicab Revenue - 4,710 4,710
Teen Baby Nursery Program 41,000 20,500 (20,500)
Market Link Vouchers 16,500 22,103 5,603
Sale of surplus prop - 1,579 1,579
Reimbursements - Serve & Pro.- 13,840 13,840
Reimbursements - Salt Use - 52,269 52,269
Reimbursements - Fire Dept.- 45,834 45,834
Payment in Lieu of Taxes 267,000 61,500 (205,500)
Fund Balance Applied 516,000 516,000 -
Contributions from Other Funds - 1,962 1,962
Private Elm Trees Ins.40,000 42,310 2,310
Citizens CPR Class Fees - 8,318 8,318
Parking Permits - Ryan Field 15,000 11,574 (3,426)
JDE Water Interface - 9,085 9,085
Miscellaneous - 5,740 5,740
Change in Reserve - (1,027,003) (1,027,003)
Total Other Revenues 1,238,468 264,252 (974,216)
Total Miscellaneous 2,120,684 1,138,650 (982,034)
Total Revenues 82,259,426$ 82,146,627$ (112,799)$
- 136 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
General Management and Support
City Council 427,807$ 450,773$ (22,966)$
City Manager and Budget Management 1,662,057 1,911,831 (249,774)
City Clerk 211,221 259,908 (48,687)
Law Department 962,202 1,060,790 (98,588)
Administrative Services 8,510,814 7,838,210 672,604
Facilities management - 120,774 (120,774)
Total General Management and Support 11,774,101 11,642,286 131,815
Public Safety
Police 27,994,019 28,207,023 (213,004)
Fire 14,238,555 14,806,150 (567,595)
Total Public Safety 42,232,574 43,013,173 (780,599)
Public Works
Public Works Director 468,594 514,272 (45,678)
Municipal Service Center 340,512 341,039 (527)
City Engineer 1,612,521 1,627,324 (14,803)
Traffic Engineer 5,836,313 5,731,796 104,517
Streets 8,941,070 9,184,132 (243,062)
Total Public Works 17,199,010 17,398,563 (199,553)
- 137 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Health and Human Services Development
Health and Human Services Director 319,435$ 329,791$ (10,356)$
Health Department 1,780,544 1,729,406 51,138
Mental health and community purchased services 1,017,702 968,957 48,745
Human Relations 868,223 808,551 59,672
Total Health and Human Services Development 3,985,904 3,836,705 149,199
Recreation and Cultural Opportunities
Recreation 8,535,713 9,188,022 (652,309)
Ecology Center 430,821 508,594 (77,773)
Cultural Arts 820,003 789,921 30,082
Total Recreation and Cultural Opportunities 9,786,537 10,486,537 (700,000)
Housing and Economic Development
Community Development Administration 246,651 252,171 (5,520)
Planning and Zoning 797,138 667,569 129,569
Housing Rehabilitation and Property Standards 188,702 149,633 39,069
Building Code Compliance 1,475,054 1,557,814 (82,760)
Total Housing and Economic Development 2,707,545 2,627,187 80,358
Total Expenditures 87,685,671$ 89,004,451$ (1,318,780)$
- 138 -
CITY OF EVANSTON, ILLINOIS
Capital Improvements
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Intergovermental allotments 936,500$ 487,563$ (448,937)$
Interest 10,000 20,380 10,380
Change in unrealized depreciation on investments - (190,365) (190,365)
Miscellaneous 14,522,096 613,108 (13,908,988)
Total Revenue 15,468,596 930,686 (14,537,910)
Expenditures
General management and support 575,000 23,714 551,286
Public safety - 112,241 (112,241)
Public works - 1,475,485 (1,475,485)
Recreation and cultural opportunities - 37,174 (37,174)
Capital Outlay 17,835,016 6,285,666 11,549,350
Total Expenditures 18,410,016 7,934,280 10,475,736
Excess (Deficiency) of Revenues over (under) Expenditures (2,941,420) (7,003,594) (4,062,174)
Other Financing Sources (Uses):
Bond Proceeds - 8,895,000 8,895,000
Bond Premium - 651,026 651,026
Bond Issuance - (60,195) (60,195)
Transfers In - 936,500 936,500
Transfers (Out)(475,000) (1,547,810) (1,072,810)
Total Other Financing Sources (Uses)(475,000) 8,874,521 9,349,521
Net Change in Fund Balance (3,416,420)$ 1,870,927 5,287,347$
Fund Balances
Beginning of Year 6,299,999
End of Year 8,170,926$
- 139 -
CITY OF EVANSTON, ILLINOIS
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Intergovernmental Allotments 1,750,000$ 2,194,015$ 444,015$
Interest 500 277 (223)
Total Revenue 1,750,500 2,194,292 443,792
Expenditures
Public Works 1,400,000 893,829 506,171
Excess (Deficiency) of Revenues over (under) Expenditures 350,500 1,300,463 949,963
Other Financing Sources (Uses)
Operating Transfers (Out)
General Fund (833,000) (833,000) -
Net Change in Fund Balance (482,500)$ 467,463 949,963$
Fund Balances
Beginning of Year 1,312,568
End of Year 1,780,031$
- 140 -
CITY OF EVANSTON, ILLINOIS
Economic Development Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Taxes and Special Assessments 2,800,000$ 1,913,372$ (886,628)$
Interest 800 60 (740)
Miscellaneous - 2,771 2,771
Total Revenue 2,800,800 1,916,203 (884,597)
Expenditures
Housing and Economic Development 2,841,706 1,475,728 1,365,978
Excess (Deficiency) of Revenues over (under) Expenditures (40,906) 440,475 481,381
Other Financing Sources (Uses)
Transfers in (out)
Howard Ridge 45,500 45,500 -
General Fund (452,707) (452,707) -
Other Financing Sources (Uses) - net (407,207) (407,207) -
Net Change in Fund Balnace (448,113)$ 33,268 481,381$
Fund Balances
Beginning of Year 3,507,202
End of Year 3,540,470$
- 141 -
CITY OF EVANSTON, ILLINOIS
Emergency Telephone System Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Taxes and Special Assessments 957,600$ 939,451$ (18,149)$
Interest 1,000 99 (901)
Miscellaneous - 1,751 1,751
Total Revenue 958,600 941,301 (17,299)
Expenditures
Public Safety 1,286,247 1,127,877 158,370
Excess (Deficiency) of Revenues over (under) Expenditures (327,647) (186,576) 141,071
Other Financing Sources (Uses)
Transfers in (out)
General Fund (125,950) (125,950) -
Net Change in Fund Balance (453,597)$ (312,526) 141,071$
Fund Balance
Beginning of Year 1,220,879
End of Year 908,353$
- 142 -
CITY OF EVANSTON, ILLINOIS
Neighborhood Improvement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Taxes and Special Assessments 20,000$ 20,000$ -$
Expenditures
Housing and Economic Development 50,000 - 50,000
Net Change in Fund Balance (30,000)$ 20,000 50,000$
Fund Balances
Beginning of Year 149,915
End of Year 169,915$
- 143 -
CITY OF EVANSTON, ILLINOIS
Affordable Housing Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Affordable Housing Demo Tax -$ 30,000$ 30,000$
Developer Contributions 155,000 149,125 (5,875)
Interest 228 256 28
Miscellaneous - 11,400 11,400
-
Total Revenue 155,228 190,781 35,553
Expenditures
Housing and Economic Development 250,000 80,949 169,051
Excess (Deficiency) of Revenues over (under) Expenditures (94,772) 109,832 204,604
Other Financing Sources (Uses)
Transfers in (out)
Debt Service Fund (13,990) (13,990) -
Net Change in Fund Balance (108,762)$ 95,842 204,604$
Fund Balance
Beginning of Year 2,451,078
End of Year 2,546,920$
- 144 -
CITY OF EVANSTON, ILLINOIS
HOME Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 674,500$ 932,634$ 258,134$
Interest - 6,465 6,465
Total Revenue 674,500 939,099 264,599
Expenditures
Housing and Economic development 677,836 301,548 376,288
Excess (Deficiency) of Revenues over (under) Expenditures (3,336) 637,551 640,887
Other Financing Sources (Uses)
Transfers in (out)
General Fund (22,500) - 22,500
Net Change in Fund Balance (25,836)$ 637,551 663,387$
Fund Balance
Beginning of Year 3,942,528
End of Year 4,580,079$
- 145 -
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Intergovernmental Allotments
Grant from U.S. Department of
Housing and Urban Development 1,738,088$ 1,571,403$ (166,685)$
Miscellaneous 13,196 13,196
Total Revenue 1,738,088 1,584,599 (153,489)
Expenditures
Housing and Economic Development 1,738,088 1,412,496 325,592
Total Expenditures 1,738,088 1,412,496 325,592
Net Change in Fund Balance -$ 172,103 172,103$
Fund Balance
Beginning of Year 12,799
End of Year 184,902$
- 146 -Continued
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Administration/Planning
CDBG Administration 386,056$ 325,783$ 60,273$
Total Administration/Planning 386,056 325,783 60,273
Economic Development
Evanston Community Development Corp.100,000 - 100,000
Total Economic Development 100,000 - 100,000
Code Enforcement
Targeted Housing Code Compliance 362,132 360,312 1,820
Total Code Enforcement 362,132 360,312 1,820
Housing
Rehab Construction Administration 170,000 174,953 (4,953)
Rehab Loans - 12,799 (12,799)
Essential Repairs - 5,300 (5,300)
Demolition /Trag code enf - 1,820 (1,820)
Total Housing 170,000 194,872 (24,872)
Neighborhood Revitalization
Grandmother Park - - -
Block Curb/Sidewalk Replacement 50,000 138,379 (88,379)
Handyman assistance/Elderly Home Rep 35,000 10,537 24,463
Penny Park 20,000 - 20,000
South Evanston Neighborhood Security - 6,118 (6,118)
Alley Imp./Paving Program 200,000 - 200,000
Senior parking 7,500 - 7,500
Snap Lighting 25,000 35,995 (10,995)
Weissbourd/Fam Focus 25,000 42,484 (17,484)
YOU-Nichols 25,000 - 25,000
Special Assessments/Alley Paving 5,000 6,016 (1,016)
Reba Park/Ridgeville - 4,600 (4,600)
Peer Windows 10,000 - 10,000
Infant 20,000 - 20,000
YWCA 25,000 30,000 (5,000)
McGaw YMCA 15,000 - 15,000
Graffiti Removal Program 31,000 31,000 -
Total Neighborhood Revitalization 493,500 305,129 188,371
- 147 -
Concluded
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Public Services
Girl Scouts Fit 4,300$ 4,300$ -$
Evanston Community Defender 28,000 28,000 -
Evanston Legal Services 6,000 6,000 -
Youth Job Center of Evanston 25,000 25,000 -
Summer Youth 51,900 51,900 -
YWCA Domestic Violence 20,500 20,500 -
Interfaith -Job 2,400 2,400 -
Family Focas 20,000 20,000 -
Meals at Home 14,000 14,000 -
Evanston School 4,300 4,300 -
North Shore Senior Center 15,000 15,000 -
Open studio Art 4,000 4,000 -
Interfaith Housing Program-homeshare 11,000 11,000 -
Iwork/hous options 20,000 20,000 -
Total Public Services 226,400 226,400 -
Total Expenditures 1,738,088$ 1,412,496$ 325,592$
- 148 -
CITY OF EVANSTON, ILLINOIS
Community Development Loan
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 60,000$ 100$ (59,900)$
Interest 100 5,494 5,394
Total Revenues 60,100 5,594 (54,506)
Expenditures
Housing and Economic Development 20,000 9,204 10,796
Net Change in Fund Balance 40,100$ (3,610) 43,710$
Fund Balances
Beginning of Year 2,354,271
End of Year 2,350,661$
- 149 -
CITY OF EVANSTON, ILLINOIS
Neighborhood Stabilization Program 2
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 458,044$ 1,149,489$ 691,445$
Expenditures
Housing and economic development 428,044 1,102,710 (674,666)
Excess (Deficiency) of Revenues over (under) Expenditures 30,000 46,779 (16,779)
Other Financing Sources (Uses)
Transfers in (out)
General (30,000) (46,779) 16,779
Net Change in Fund Balance -$ - -$
Fund Balances
Beginning -
Ending -$
- 150 -
CITY OF EVANSTON, ILLINOIS
Special Service District No. 4 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Property Taxes
Current Year 370,000$ 320,000$ (50,000)$
Prior Year - (51,616) (51,616)
Interest - - -
Total Revenue 370,000 268,384 (101,616)
Expenditures
Housing and Economic Development 370,000 320,000 50,000
Net Change in Fund Balance -$ (51,616) (51,616)$
Fund Balance
Beginning of Year 196,816
End of Year 145,200$
- 151 -
CITY OF EVANSTON, ILLINOIS
General Assistance Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Property taxes 886,553$ 1,003,243$ 116,690$
Interest 500 97 (403)
Miscellaneous 25,000 32,557 7,557
Total Revenues 912,053 1,035,897 123,844
Expenditures
General management and support 1,513,700 1,443,292 70,408
Excess (Deficiency) of Revenues
over (under) Expenditures (601,647) (407,395) 194,252
Other Financing Sources (Uses)
Transfers in (out)
General Fund 601,647 - (601,647)
Net Change in Fund Balance -$ (407,395) (407,395)$
Fund Balance
Beginning 590,494
Ending 183,099$
- 152 -
CITY OF EVANSTON, ILLINOIS
Special Assessment Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Special Assessments 230,000$ 167,382$ (62,618)$
Investment Income 1,200 2,849 1,649
Net Change in FMV of Investments - (3,084) (3,084)
Miscellaneous Income - 28 28
Total Revenues 231,200 167,175 (64,025)
Expenditures
Current
General Management and Support - 621 (621)
Capital Outlay 501,000 53,738 447,262
Total Expenditures 501,000 54,359 446,641
Excess (Deficiency) of Revenues over (under) Expenditures (269,800) 112,816 382,616
Other Financing Sources (Uses)
Issuance of Debt 250,000 503,185 253,185
Transfer to Debt Service Fund (169,848) (169,848) -
Other Financing Sources (Uses) - net 80,152 333,337 253,185
Net Change in Fund Balance (189,648)$ 446,153 635,801$
Fund Balance
Beginning of Year 2,072,415
End of Year 2,518,568$
- 153 -
CITY OF EVANSTON, ILLINOIS
Debt Service Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year ended December 31, 2014
Original Original Original Original
and Final and Final and Final and Final
Budget Actual Budget Actual Budget Actual Budget Actual
Taxes
Property Taxes
Current year levy, net 10,879,993$ 11,049,841$ 397,800$ 428,745$ 485,000$ 607,662$ 1,100,000$ 1,140,311$
Prior year levy, net - 217,999 - (24,854) - - - -
Investment Income 1,500 11,934 - 6 1,000 6 10,000 13,819
Miscellaneous - (12,614) - - - - - -
Total Revenues 10,881,493 11,267,160 397,800 403,897 486,000 607,668 1,110,000 1,154,130
General management
and support 1,000 36,250 - - - - - -
Housing and economic
development - - - - 748,439 17,574 500,000 1,221,143
Construction Improvement - - - - - - - -
Debt Service
Principal 9,584,673 9,303,118 390,000 380,000 - - 685,000 -
Interest 4,262,442 4,320,714 46,605 62,050 - - 39,088 -
Fiscal agent fees 85,000 42,870 - - - - - -
Total Expenditures 13,933,115 13,702,952 436,605 442,050 748,439 17,574 1,224,088 1,221,143
(3,051,622) (2,435,792) (38,805) (38,153) (262,439) 590,094 (114,088) (67,013)
Issuance of Debt - - - - - - - -
Transfers in (out)
General 1,279,306 609,000 - - (29,500) (29,500) (144,400) (144,400)
IMRF 141,125 - - - - - - -
NSP 2 - - - - - - - -
Emergency Telephone - - - - - - - -
Community Development Grant - - - - - - - -
Economic Development - - - - - - (2,500,000) -
Washington National CIP - - - - - - - -
Special Assessment 339,696 169,848 - - - - - -
Fleet Services - - - - - - - -
Insurance - - - - - - - -
Sewer Fund 207,284 1,018,715 - - - - - -
Motor Vehicle Parking System - - - - - - - -
1,967,411 1,797,563 - - (29,500) (29,500) (2,644,400) (144,400)
Net Changes in Fund Balances (1,084,211)$ (638,229) (38,805)$ (38,153) (291,939)$ 560,594 (2,758,488)$ (211,413)
Fund Balances (Deficit)
Beginning (418,596) 24,670 333,071 2,617,326
Ending (1,056,825)$ (13,483)$ 893,665$ 2,405,913$
Other Financing Sources (Uses)
Special
General Service District Southwest Tax Howard Hartrey Tax
Budget and Actual (Budgetary Basis)
Total Other Financing
Sources (Uses)
Obligation Debt No.5 Increment District Increment District
Revenues
Expenditures
Excess (Deficiency) of Revenues
over (under) Expenditures
- 154 -
Original Original Original Original
and Final and Final and Final and Final
Budget Actual Budget Actual Budget Actual Budget Actual
3,700,000$ 4,945,321$ 350,000$ 438,854$ 40,000$ -$ 16,952,793$ 18,610,734$
- 24,247 - 5,733 - - - 223,125
10,000 13,420 400 211 100 764 23,000 40,160
- - - 61,932 - - - 49,318
3,710,000 4,982,988 350,400 506,730 40,100 764 16,975,793 18,923,337
250,000 - 300,000 721,450 95,000 - 646,000 757,700
- - - - - - 1,248,439 1,238,717
1,972,486 111,227 - - - - 1,972,486 111,227
455,000 545,000 - - - - 11,114,673 10,228,118
55,000 29,975 - - 10,000 7,027 4,413,135 4,419,766
- - - - - - 85,000 42,870
2,732,486 686,202 300,000 721,450 105,000 7,027 19,479,733 16,798,398
977,514 4,296,786 50,400 (214,720) (64,900) (6,263) (2,503,940) 2,124,939
- - - - - 100,261 - 100,261
(331,000) (331,000) (60,000) (60,000) (60,000) - 654,406 44,100
- - - - - - 141,125 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - (45,500) (45,500) - - (2,545,500) (45,500)
- - - - - - - -
- - - - - - 339,696 169,848
- - - - - - - -
- - - - - - - -
- - - - - - 207,284 1,018,715
(2,925,296) (2,925,296) - - - - (2,925,296) (2,925,296)
(3,256,296) (3,256,296) (105,500) (105,500) (60,000) 100,261 (4,128,285) (1,637,872)
(2,278,782)$ 1,040,490 (55,100)$ (320,220) (124,900)$ 93,998 (6,632,225)$ 487,067
4,120,041 376,966 537,641 7,591,119
5,160,531$ 56,746$ 631,639$ 8,078,186$
Washington
National Tax Howard Ridge Tax West Evanston Tax
Increment District Increment District Increment District Totals
- 155 -
CITY OF EVANSTON, ILLINOIS
Water Fund
Schedule of Net Position
As of December 31, 2014
Operation and
Maintence
Account
Bond and
Interest Bond Reserve
Depreciation,
Improvement,
and Extension Totals
Assets
Current Assets
Cash and equivalents 5,813,248$ (179,906)$ 2,985,502$ 18,375$ 8,637,219$
Restricted cash and equivalents 70,813 29,923 - 400,000 500,736
Receivables
Accounts - Billed 1,552,614 - - - 1,552,614
Accounts - Unbilled 961,108 - - - 961,108
Inventory 524,534 - - - 524,534
Prepaid expenses - - - - -
Interfund receivable 560,147 - - - 560,147
Total Current Assets 9,482,464 (149,983) 2,985,502 418,375 12,736,358
Capital Assets
Land 555,415 - - - 555,415
Construction in progress 73,374 - - 2,389,699 2,463,073
Capital assets being depreciated 91,259,929 - - - 91,259,929
Less accumulated depreciation (22,295,613) - - - (22,295,613)
Total Capital Assets 69,593,105 - - 2,389,699 71,982,804
Total Assets 79,075,569$ (149,983)$ 2,985,502$ 2,808,074$ 84,719,162$
Liabilities and Net Position
Current Liabilities
Vouchers payable 790,082$ -$ -$ 1,426,793$ 2,216,875$
Interest payable-restricted 61,803 - - - 61,803
Notes payable-IEPA 67,505 - - - 67,505
General obligation bonds payable 538,402 - - - 538,402
Due to other funds 974,797 - (50) 325,961 1,300,708
Compensated absences payable 200,852 - - - 200,852
Total Current Liabilities 2,633,441 - (50) 1,752,754 4,386,145
Long-Term Liabilities
Notes payable-IEPA 1,012,572 - - - 1,012,572
OPEB liability 188,737 - - - 188,737
Compensated absences payable 426,812 - - - 426,812
General obligation bonds payable 11,652,679 - - - 11,652,679
IMRF Pension Contributions Payable 385,728 - - - 385,728
Unamortized Discount on Bonds Payable 403,402 (16,544) - - 386,858
Total Long-Term Liabilities 14,069,930 (16,544) - - 14,053,386
Total Liabilities 16,703,371 (16,544) (50) 1,752,754 18,439,531
Net Position
Net Investment in Capital Assets 55,918,545 16,544 - 2,389,699 58,324,788
Restricted for Capital Improvements - - - 400,000 400,000
Unrestricted 6,453,653 (149,983) 2,985,552 (1,734,379) 7,554,843
Total Net Position 62,372,198 (133,439) 2,985,552 1,055,320 66,279,631
Total Liabilities and Net Position 79,075,569$ (149,983)$ 2,985,502$ 2,808,074$ 84,719,162$
- 156 -
CITY OF EVANSTON, ILLINOIS
Water Fund
Schedule of Changes in Net Position
As of December 31, 2014
Bond and
Interest Bond Reserve
Depreciation,
Improvement,
and Extension Totals
Increases
Intrafund transfer in - retained
earnings - unreserved -
operation and maintenance -$ -$ 5,500,000$ 5,500,000$
Investment earnings 6,856 661 473 7,990
Change in unrealized depreciation
on investments (26,008) - - (26,008)
Miscellaneous - - 14,557 14,557
Total Increases (19,152) 661 5,515,030 5,496,539
Decreases
Purchase of capital assets - - 11,767,672 11,767,672
Capital outlay - - 1,323,071 1,323,071
Total Decreases - - 13,090,743 13,090,743
Net Increase (Decrease)(19,152) 661 (7,575,713) (7,594,204)
Net Position (Deficit)
Beginning of year (114,287) 2,984,891 8,631,033 11,501,637
End of year (133,439)$ 2,985,552$ 1,055,320$ 3,907,433$
- 157 -
CITY OF EVANSTON, ILLINOIS
Water Fund - Operations and Maintenance Account
Schedule of Revenues, Expenditures, and Changes in Unreserved Fund Balance - Budget and Actual
For the Fiscal Year ended December 31, 2014
(With Comparative Totals for the Fiscal Year ended December 31, 2013)
Budget Actual
Prior Period
Actual
Operating Revenues
Charges for services 13,913,400$ 14,379,362$ 13,903,482$
Miscellaneous 411,316 672,370 754,266
Total Operating Revenues 14,324,716 15,051,732 14,657,748
Operating Expenses Excluding Depreciation
Administration 933,989 1,099,395 960,028
Operations
Pumping 2,355,718 2,023,601 2,226,781
Filtration 2,740,856 2,331,616 2,435,092
Distribution 1,425,352 1,444,158 1,389,136
Meter maintenance 300,760 280,083 249,474
Other 491,700 759,985 915,196
Total Operating Expenses Excluding Depreciation 8,248,375 7,938,838 8,175,707
Operating Income Before Depreciation 6,076,341 7,112,894 6,482,041
Depreciation - 1,569,014 1,449,757
Operating Income 6,076,341 5,543,880 5,032,284
Nonoperating Revenues (Expenses)
Interest Income 2,500 17,552 12,256
Change in unrealized depreciation on investments - (61,547) -
Interest Expense - (376,677) (298,850)
Amortization of bond discount and costs - 1,129 1,129
Bond issuance and amortization costs - 1,624 (19,777)
Net book value of fixed assets disposed - (772,649) (60,762)
Total Nonoperating Revenues (Expenses) 2,500 (1,190,568) (366,004)
Income Before Transfers 6,078,841 4,353,312 4,666,280
Transfers In (Out)
General Fund (3,356,300) (3,369,559) (3,356,300)
Insurance Fund (468,492) - -
Total Transfers In (Out) (3,356,300) (3,369,559) (3,356,300)
Net Income 2,722,541$ 983,753 1,309,980
Other Changes in Unreserved Net Position
Intrafund transfers in (out) - Net Position
reserved - restricted accounts 6,267,672 (4,290,942)
Increase (Decrease) in Unreserved Net Position 7,251,425 (2,980,962)
Unreserved Net Position
Beginning of year 55,120,773 58,101,735
End of year 62,372,198$ 55,120,773$
- 158 -
CITY OF EVANSTON, ILLINOIS
Water Fund - Operation and Maintenance Account
Schedule of Operating Revenues - Budget and Actual
For the Fiscal Year ended December 31, 2014
(With Comparative Totals For the Fiscal Year ended December 31, 2013)
Budget Actual
Prior Period
Actual
Charges for Services, Net
Water Sales
Evanston 6,347,400$ 6,498,894$ 5,947,633$
Skokie 2,913,000 2,805,425 2,772,424
Northwest Water Commission 4,653,000 5,075,043 5,183,425
Total Charges for Services 13,913,400 14,379,362 13,903,482
Miscellaneous
Fees and outside work 115,000 59,050 103,173
Fees, merchandise and other 296,316 613,320 651,093
Total Miscellaneous 411,316 672,370 754,266
Total Operating Revenues 14,324,716$ 15,051,732$ 14,657,748$
- 159 -
Internal Service Funds
Internal service funds are used to account for the financing of goods or services provided by one department or
agency to other departments or agencies of the government and to other government units, on a cost
reimbursement basis.
Equipment Replacement Fund -to account for the costs of all vehicle and equipment replacement purchases,
new additions to the fleet and some rental and lease activities.Such costs are billed to the user departments at
actual cost.
Fleet Services Fund -to account for the costs of operating the municipal service center maintenance facility for
transportation equipment used by other City departments.Such costs are billed to the user departments at actual
cost. Actual costs include depreciation on the transportation equipment.
Insurance Fund -to account for the costs of administering general liability claims and workers'compensation
programs. Such costs are billed to the General Fund.
- 160 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Net Position
Equipment
Replacement Fleet Services Insurance Totals
Current Assets
Cash and equivalents 751,419$ 8,290$ 490,310$ 1,250,019$
Receivables - other - 25,556 - 25,556
Inventories - 751,148 - 751,148
Prepaid expenses 1,016,811 - - 1,016,811
Due from other funds 551,164 - 1,145,622 1,696,786
Due from component unit - - 3,333 3,333
Total Unrestricted Current Assets 2,319,394 784,994 1,639,265 4,743,653
Capital Assets
Capital Assets being depreciated 21,629,607 617,552 - 22,247,159
Accumulated depreciation (14,243,826) (617,403) - (14,861,229)
Total Capital Assets 7,385,781 149 - 7,385,930
Total Assets 9,705,175 785,143 1,639,265 12,129,583
Liabilities and Fund Equity
Current Liabilities
Vouchers payable 135,608 294,128 78,226 507,962
Compensated absences payable - 61,352 - 61,352
Claims payable - - 1,971,381 1,971,381
Due to other funds - 429,099 - 429,099
Total Current Liabilities 135,608 784,579 2,049,607 2,969,794
Long-Term Liabilities
Compensated absences payable - 59,254 - 59,254
OPEB Liability - 62,105 - 62,105
Claims payable - - 2,971,585 2,971,585
Total Long-Term Liabilities - 121,359 2,971,585 3,092,944
Total Liabilities 135,608 905,938 5,021,192 6,062,738
Net Position (Deficit)
Net Investment in Capital Assets 7,385,781 149 - 7,385,930
Unrestricted 2,183,786 (120,944) (3,381,927) (1,319,085)
Total Net Position (deficit)9,569,567$ (120,795)$ (3,381,927)$ 6,066,845$
As of December 31, 2014
Assets
- 161 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
For the Fiscal Year ended December 31, 2014
Equipment
Replacement Fleet Services Insurance Totals
Operating Revenues
Charges for Services
General Fund 1,242,590$ 2,507,358$ 2,609,392$ 6,359,340$
Sewer Fund - 475,800 269,988 745,788
Solid Waste 177,131 - - 177,131
Water Fund - 122,751 468,493 591,244
Motor Vehicle Parking System Fund 30,000 21,992 319,649 371,641
Library Fund 1,700 2,381 40,000 44,081
Emergency Telephone System - - 17,448 17,448
Economic Development - - 17,448 17,448
Community Development Block Grant - - 17,448 17,448
Claims Reimbursements - - 93,265 93,265
Health Insurance Contributions - - 14,218,876 14,218,876
Miscellaneous - 50,010 2,900 52,910
Total Operating Revenues 1,451,421 3,180,292 18,074,907 22,706,620
Operating Expenses
General support 22,503 289,036 - 311,539
Major maintenance 131,147 3,122,766 - 3,253,913
General liability claims - - 1,782,161 1,782,161
Workers compensation claims - - 1,854,190 1,854,190
Health Insurance Premiums - - 13,832,272 13,832,272
Other - - 260,667 260,667
Total Operating Expenses 153,650 3,411,802 17,729,290 21,294,742
Operating Income (Loss) Before Depreciation 1,297,771 (231,510) 345,617 1,411,878
Depreciation 1,476,384 357 - 1,476,741
Operating Income (Loss)(178,613) (231,867) 345,617 (64,863)
Nonoperating Revenues (Expenses)
Investment income - - 119 119
Gain (loss) on disposition of assets 46,535 - - 46,535
Total Nonoperating Revenues (Expenses)46,535 - 119 46,654
Income Before Transfers (132,078) (231,867) 345,736 (18,209)
Transfers In
Capital Improvements 1,072,810 - - 1,072,810
Change in Net Position 940,732 (231,867) 345,736 1,054,601
Total Net Position (Deficit) - Beginning 8,628,835 111,072 (3,727,663) 5,012,244
Total Net Position (Deficit)- Ending 9,569,567$ (120,795)$ (3,381,927)$ 6,066,845$
- 162 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year ended December 31, 2014
Equipment
Replacement Fleet Services Insurance Totals
Cash Flows from Operating Activities
Receipts from customers and users 1,451,421$ 3,179,156$ 18,074,907$ 22,705,484$
Receipts from / (Payments for)
interfund services provided 724,030 260,365 (504,799) 479,596
Payments to suppliers (1,738,523) (3,182,894) (260,667) (5,182,084)
Payments to employees - (254,970) (3,484,845) (3,739,815)
Payments for insurance premiums - - (13,779,545) (13,779,545)
Net Cash Provided by (used for) Operating Activities 436,928 1,657 45,051 483,636
Cash Flows from Capital and Related Financing Activities
Transfer In 1,072,810 - - 1,072,810
Sale of capital assets 46,535 - - 46,535
Acquisition and construction of capital assets (822,313) - - (822,313)
Net Cash from Capital and Related Financing Actities 297,032 - - 297,032
Cash Flows from Investing Activities
Interest Income - - 119 119
Net Cash from Investing Activities - - 119 119
Net Increase (Decrease) in Cash and Cash Equivalents 733,960 1,657 45,170 780,787
Cash and Equivalents
Beginning 17,459 6,633 445,140 469,232
Ending 751,419$ 8,290$ 490,310$ 1,250,019$
- 163 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year ended December 31, 2014
Equipment
Replacement Fleet Services Insurance Totals
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities
Operating Income (Loss)(178,613)$ (231,867)$ 345,617$ (64,863)$
Adjustments to reconcile operating income to
net cash provided by (used for) operating activities
Depreciation 1,476,384 357 - 1,476,741
Changes in assets and liabilities
Increase/decrease in A/R miscellaneous - (1,136) - (1,136)
Interfund receivable 724,030 - (504,799) 219,231
Prepaid expenses (981,865) - - (981,865)
Inventories - (11,989) - (11,989)
Compensated absences - 23,876 - 23,876
OPEB Liability - 10,190 - 10,190
Accounts payable (603,008) (48,139) 52,727 (598,420)
Interfund payable - 260,365 - 260,365
Claims payable - - 151,506 151,506
Net Cash Provided by (used for) Operating Activities 436,928$ 1,657$ 45,051$ 483,636$
- 164 -
EVANSTON LIBRARY COMPONENT UNIT
- 165 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
Statement of Net Position and Governmental Funds
Combining Balance Sheet
December 31, 2014
Statement of
Operating Endowment Debt Serivce Total Adjustments Activities
Assets
Cash and Investments 1,121,048$ 3,911,991$ (2,409)$ 5,030,630$ -$ 5,030,630$
Property Tax Receivables 5,813,505 - 605,138 6,418,643 - 6,418,643
Accrued Interest Receivables - 8,741 - 8,741 - 8,741
Capital assets not being depreciated - - - - 311,380 311,380
Capital assets net of
accumulated depreciation - - - - 12,993,557 12,993,557
Total Assets 6,934,553 3,920,732 602,729 11,458,014 13,304,937 24,762,951
Liabilities, Deferred Inflows,
and Fund Balance
Current Liabilities
Accounts Payable 93,554 - - 93,554 - 93,554
Other Payable 14,536 - - 14,536 - 14,536
Due to Primary Government 424,983 - - 424,983 - 424,983
Total Current Liabilities 533,073 - - 533,073 - 533,073
Noncurrent Liabilities
Due within one year - Debt - - - - 658,360 658,360
Due in more than one year - Debt - - - - 2,275,156 2,275,156
Total Noncurrent Liabilities - - - - 2,933,516 2,933,516
Total Liabilties 533,073 - - 533,073 2,933,516 3,466,589
Deferred Inflows of Resources
Property Tax 5,022,510 - 509,134 5,531,644 - 5,531,644
Total Liabilties and Deferred Inflows 5,555,583 - 509,134 6,064,717 2,933,516 8,998,233
Fund Balance / Net Position
Net Investment in Capital Assets - - - - 13,304,937 13,304,937
Unassigned / Unrestricted 1,378,970 3,920,732 93,595 5,393,297 (2,933,516) 2,459,781
Total Fund Balance / Net Position 1,378,970 3,920,732 93,595 5,393,297 10,371,421 15,764,718
Total Liabilities, Deferred Inflows,
and Fund Balance 6,934,553$ 3,920,732$ 602,729$ 11,458,014$ 13,304,937$ 24,762,951$
- 166 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
Statement of Activities and Governmental Fund Combining Statement of Revenue, Expenditures
and Changes in Fund Balance/ Net Position
For Fiscal Year ended December 31, 2014
Statement of
Operating Endowment Debt Serivce Total Adjustments Activities
Revenues
Property Taxes 5,459,638$ -$ 739,225$ 6,198,863$ -$ 6,198,863$
Charges for Services 830,326 - - 830,326 - 830,326
Investment Income - 353,383 - 353,383 - 353,383
Donations - 919 - 919 - 919
Miscellaneous - - - - - -
Total Revenue 6,289,964 354,302 739,225 7,383,491 - 7,383,491
Expenditures
Current
Community Services 5,790,864 209,375 - 6,000,239 140,512 6,140,751
Debt Service - - 748,521 748,521 - 748,521
Total Expenditures 5,790,864 209,375 748,521 6,748,760 140,512 6,889,272
Change in Net Position 499,100 144,927 (9,296) 634,731 (140,512) 494,219
Net Position
Beginning of Year 879,870 3,775,805 102,891 4,758,566 10,511,933 15,270,499
End of Year 1,378,970$ 3,920,732$ 93,595$ 5,393,297$ 10,371,421$ 15,764,718$
- 167 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
Library Operating Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis)
For the Fiscal Year ended December 31, 2014
Original and
Final Budget Actual Variance
Revenues
Property Taxes 5,082,297$ 5,255,479$ 173,182$
Charges for Services 830,677 830,326 (351)
Total Revenue 5,912,974 6,085,805 172,831
Expenditures
General management and support 5,628,377 5,506,266 122,111
Total Expenditures 5,628,377 5,506,266 122,111
Excess (Deficiency) of Revenues
over (under) Expenditures 284,597 579,539 294,942
Other Financing Sources (Uses)
Transfer In (Out) - General Fund (210,000) (210,000) -
Transfer In (Out) - Debt Service Fund (74,597) (74,597) -
Total Other Financing Sources (Uses)(284,597) (284,597) -
Net Change in Fund Balance -$ 294,942 294,942$
Fund Balance
Beginning of Year 934,065
End of Year 1,229,007$
- 168 -
STATISTICAL SECTION (UNAUDITED)
- 169 -
Statistical Section
Contents Page
Financial Trends 170 - 173
Revenue Capacity 174 - 176
Debt Capacity 177 - 180
Demographic and Economic Information 181 - 186
Operating Information 187 - 188
These schedules offer demographic and economic indicators to help the
reader understand the environment within the Government's financial activities
take place.
These schedules contain information about the Government's service and
resources to help the reader understand how the Government's financial
information relates to the services the Government provides and the activities
it performs.
This part of the Government's 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 says
about the Government's overall financial health.
These schedules contain trend information to help the reader understand how
the Government's financial performance and well-being have changed over
time.
These schedules contain information to help the reader assess the
Government's most significant local revenue source, the property tax.
These schedules present information to help the reader assess the
affordability of the Government's current levels of outstanding debt and the
Government's ability to issue additional debt in the future.
- 170 -
CITY OF EVANSTON, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Governmental Activities
Net Investment in Capital Assets 34,428$ 31,133$ 31,542$ 37,278$ 41,109$ 49,483$ 57,663$ 60,105$ 47,214$ 46,633$
Restricted 31,169 30,034 23,168 26,238 23,645 23,187 31,559 31,754 24,720 25,446
Unrestricted 15,408 25,171 28,231 17,539 10,400 4,072 (24,033) (23,729) (13,846) (11,436)
Total Governmental Activities Net Position 81,005$ 86,338$ 82,941$ 81,055$ 75,154$ 76,742$ 65,189$ 68,130$ 58,088$ 60,643$
Business-type Activities
Net Investment in Capital Assets 129,084$ 140,621$ 159,185$ 172,399$ 192,921$ 207,162$ 215,755$ 228,738$ 239,243$ 246,382$
Restricted 10,449 9,374 1,986 1,987 3,378 1,624 1,034 710 712 649
Unrestricted 23,483 21,417 23,589 27,586 25,417 19,141 25,385 26,363 25,484 23,563
Total Business-type Activities Net Position 163,016$ 171,412$ 184,760$ 201,972$ 221,716$ 227,927$ 242,174$ 255,811$ 265,439$ 270,594$
Primary Government
Net Investment in Capital Assets 163,512$ 171,754$ 190,727$ 209,677$ 234,030$ 256,645$ 273,418$ 288,843$ 286,457$ 293,015$
Restricted 41,618 39,408 25,154 28,225 27,023 24,811 32,593 32,464 25,432 26,095
Unrestricted 38,891 46,588 51,820 45,125 35,817 23,213 1,352 2,634 11,638 12,127
Total Primary Government Net Position 244,021$ 257,750$ 267,701$ 283,027$ 296,870$ 304,669$ 307,363$ 323,941$ 323,527$ 331,237$
Source: City Finance Division
- 171 -
CITY OF EVANSTON, ILLINOIS
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Expenses
Governmental Activities
General government 19,537$ 19,951$ 20,072$ 18,017$ 19,773$ 17,517$ 17,911$ 22,508$ 18,892$ 13,811$
Public Safety 45,951 46,368 48,763 49,484 50,488 53,226 43,465 52,740 57,090 58,795
Public Works 14,632 16,505 21,566 21,628 18,509 15,626 12,399 11,099 13,782 25,825
Health & Human Resource Development 4,781 6,108 4,982 4,546 4,760 4,541 3,547 3,200 3,601 3,837
Housing & Economic Development 6,850 7,924 7,090 6,965 20,066 10,857 11,630 19,101 11,123 12,443
Culture and Recreation 19,792 18,303 20,634 20,002 9,120 20,142 15,607 17,438 16,433 9,358
Interest on Long-term Debt 5,874 6,926 5,522 4,041 4,396 5,595 3,114 1,786 377 3,919
Total governmental activities expenses 117,417 122,085 128,630 124,682 127,112 127,504 107,673 127,872 121,298 127,988
Business-type Activities
Water 8,760 8,778 8,668 9,391 9,133 8,713 7,450 10,172 11,193 11,977
Sewer 9,219 9,588 8,972 8,726 8,779 8,784 7,083 7,872 7,649 7,293
Solid Waste - - - - - - 4,317 4,612 4,732 4,856
Motor vehicle parking system 2,904 2,963 2,403 8,896 8,841 8,425 6,673 8,297 8,369 7,856
Sherman garage - 1,613 4,270 - - - - - - -
Maple avenue garage 3,096 2,910 2,682 - - - - - - -
Total Business-type Activities 23,979 25,852 26,996 27,013 26,753 25,922 25,523 30,953 31,943 31,982
Total primary government expenses 141,396$ 147,937$ 155,625$ 151,695$ 153,865$ 153,426$ 133,196$ 158,825$ 153,241$ 159,970$
Program Revenues
Governmental Activities
Charges for Services
General government 13,060$ 13,630$ 12,639$ 13,348$ 13,087$ 12,796$ 9,219$ 9,478$ 8,917$ 9,374$
Culture and Recreation 4,310 4,353 4,521 4,637 4,902 5,265 4,587 9,934 5,236 5,360
Other activities 10,293 8,779 14,518 10,289 7,946 9,377 8,523 11,349 12,179 15,754
Operating grants and contributions 3,441 3,679 5,982 5,117 5,898 9,851 9,861 13,453 10,102 7,151
Total governmental activities program revenues 32,231 30,626 37,778 33,504 35,870 45,315 36,131 46,231 39,390 37,639
Business-type Activities
Charges for Services
Water 13,961 12,639 13,239 13,685 12,694 13,738 12,369 14,967 14,658 15,052
Sewer 16,077 14,394 14,239 13,774 13,243 13,393 11,377 14,115 13,510 12,785
Sherman garage - 779 1,950 - - - - - -
Solid Waste - - - - - - 2,900 3,490 3,651 3,971
Motor vehicle parking system 2,965 3,059 3,084 6,719 6,772 5,987 4,928 6,663 6,255 6,080
Maple avenue garage fund 1,622 1,417 1,430 - - - - - -
Operating grants and contributions - - - - - - - 395 939 15
Total Business-type activities program revenues 34,625 32,288 33,941 34,178 32,709 33,118 31,574 39,630 39,013 37,903
Total primary government program revenues 66,856$ 62,914$ 71,719$ 67,682$ 68,579$ 78,433$ 67,705$ 85,861$ 78,403$ 75,542$
Net (expense)/revenue
Governmental activities (85,186) (91,459) (90,852) (91,178) (91,242) (82,189) (71,542) (81,641) (81,908) (90,349)
Business-type Activities 10,646 6,436 6,945 7,166 5,956 7,196 6,051 8,677 7,070 5,921
Total Primary Government net expense (74,540) (85,023) (83,906) (84,012) (85,286) (74,993) (65,491) (72,964) (74,838) (84,428)
General Revenues and Other Changes in
Net Position
Governmental Activities
Taxes
Property taxes 89,810$ 61,983$ 46,947$ 56,217$ 58,839$ 47,040$ 33,399$ 47,874$ 46,349$ 48,579$
Sales taxes - 14,387 16,172 15,500 14,880 15,577 13,495 15,888 16,965 17,362
Investment earnings 2,997 3,752 3,653 360 721 557 32 398 79 (258)
Miscellaneous 1,412 17,287 25,799 26,684 24,601 27,501 21,244 25,348 27,369 26,612
Transfers (4,277) (616) (5,116) (9,469) (13,700) (99) (8,180) (4,926) (2,586) 610
Total governmental activities 89,942 96,793 87,455 89,292 85,341 90,576 59,990 84,582 88,176 92,905
Business-type Activities
Investment earnings 896 1,344 1,287 606 87 23 16 34 33 (156)
Miscellaneous - - - (28) - - - - (61) -
Transfers 4,277 616 5,116 9,469 13,700 99 8,180 4,926 2,586 (610)
Total business-type Activities 5,173 1,960 6,403 10,047 13,787 122 8,196 4,960 2,558 (766)
Changes in Net Position
Governmental Activities 4,756$ 5,334$ (3,397)$ (1,886)$ (5,901)$ 8,387$ (11,552)$ 2,941$ 6,268$ 2,556$
Business-type Activities 15,819 8,396 13,348 17,212 19,743 7,318 14,247 13,637 9,628 5,154
Total primary government 20,575$ 13,730$ 9,951$ 15,326$ 13,842$ 15,705$ 2,695$ 16,578$ 15,896$ 7,710$
Ten months ended December 31, 2011
Source: City Finance Division
*
*
- 172 -
CITY OF EVANSTON, ILLINOIS
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
General Fund
Reserved 6,027$ 1,327$ 1,108$ 1,275$ 1,585$ 1,995$ -$ -$ -$ -$
Unreserved 18,804 24,866 24,840 19,752 18,603 20,009 - - - -
Assigned - - - - - - 7,590 6,848 6,362 5,347
Unassigned - - - - - - 10,803 10,186 10,001 9,636
Total general fund 24,831$ 26,193$ 25,948$ 21,027$ 20,188$ 22,004$ 18,393$ 17,034$ 16,363$ 14,983$
All Other Governmental Funds
Reserved 33,937$ 31,741$ 29,739$ 31,757$ 28,953$ 28,738$ -$ -$ -$ -$
Unreserved, reported in
Special revenue funds 5,171 5,587 6,649 10,356 10,807 10,907 - - - -
Capital Projects Funds 31,696 23,965 25,620 20,899 9,276 9,665 - - - -
Nonspendable - - - - - - 1,419 - 407 1,430
Restricted - - - - - - 32,353 32,431 25,359 26,003
Committed - - - - - - 806 2,150 3,507 3,540
Assigned - - - - - - 10,074 5,307 8,372 10,467
Unassigned - - - - - - (175) 1,105 (149) (153)
Total all other governmental funds 70,804$ 61,293$ 62,008$ 63,012$ 49,036$ 49,310$ 44,477$ 40,993$ 37,496$ 41,287$
Notes: 1. Fund balances for debt service have been included in the reserved amounts.
2. Starting fiscal year ending December 31, 2011, financials are presented per the new reporting standards of GASB 54.
Source: City Finance Division
- 173 -
CITY OF EVANSTON, ILLINOIS
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Ended
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Revenues
Taxes 75,661$ 77,137$ 75,767$ 84,035$ 84,726$ 73,559$ 56,466$ 79,331$ 78,254$ 77,933$
Licenses, fees and permits 9,164 8,061 10,276 8,820 7,279 8,661 6,776 10,470 10,617 14,503
Fines and penalties 3,781 4,029 4,660 4,442 4,151 4,003 3,280 3,470 3,449 3,358
Charges for services 6,905 7,167 7,732 8,399 8,680 9,786 6,283 7,763 7,723 7,793
Special Assessments 546 565 520 516 240 429 235 293 275 167
Intergovernmental 21,106 21,402 22,625 21,013 20,696 26,456 23,183 29,252 27,844 24,300
Investment Earnings 2,970 3,695 3,402 272 714 555 22 397 94 89
Other Revenues 5,812 5,578 5,116 4,679 4,642 6,390 4,133 2,915 1,906 1,791
Total Revenues 125,945 127,634 130,098 132,176 131,128 129,839 100,378 133,891 130,162 129,934
Expenditures
General Government 15,601 14,539 18,190 16,498 16,184 23,463 13,594 18,532 17,611 13,314
Public Safety 39,094 39,690 42,466 49,999 48,970 50,352 42,140 54,611 56,431 59,425
Public Works 13,242 14,282 18,868 18,913 16,062 14,053 7,574 9,380 11,982 19,821
Recreation and cultural opportunities 16,526 16,683 19,118 18,942 18,100 17,399 16,192 14,309 14,775 10,524
Health and Human Development 4,566 5,850 4,982 4,546 4,760 4,541 3,588 3,200 3,601 3,837
Housing and Economic Development 6,646 7,683 7,089 6,963 9,120 11,345 11,999 19,095 11,305 9,348
Pensions 4,628 5,645 - - - - - - - -
Capital Outlay 42,087 18,986 12,416 8,209 7,960 7,112 5,832 8,523 5,948 6,286
Debt Service
Interest 5,857 6,927 5,128 5,143 4,953 4,878 4,384 5,175 4,996 4,411
Fiscal agent fees 323 517 42 28 5 12 79 76 127 43
Principal 7,690 11,530 10,815 9,885 7,524 7,650 10,106 13,055 34,259 10,040
Total governmental activities expenditure 156,260 142,332 139,114 139,126 133,638 140,805 115,488 145,956 161,035 137,049
Net (expense)/revenue
Governmental activities (30,315) (14,698) (9,016) (6,950) (2,510) (10,966) (15,110) (12,065) (30,873) (7,115)
Proceeds from borrowing 31,332$ 24,916$ 31,444$ 24,340$ -$ 13,393$ 15,420$ 12,618$ 34,982$ 9,989$
Capitalized interest income 355 - - 839 - 120 - - - -
Capitalized interest expense (355) - - - - - - - - -
Escrow funding (6,626) (14,368) (15,590) (13,280) - - - - - -
Transfers in 7,032 6,529 8,975 5,927 11,019 5,727 5,839 9,271 8,182 9,202
Transfers (out)(14,432) (10,528) (15,344) (14,794) (23,324) (6,184) (14,593) (14,668) (11,879) (9,665)
Total Other financing sources (uses)17,306 6,549 9,485 3,032 (12,305) 13,056 6,666 7,221 31,285 9,526
Net Changes in Fund Balance (13,009)$ (8,149)$ 469$ (3,917)$ (14,815)$ 2,090$ (8,444)$ (4,844)$ 412$ 2,411$
Debt Service as a percentage of
noncapital expenditures 11.87%14.96%12.58%11.48%9.93%9.36%13.29%13.26%25.31%11.05%
Source: City Finance Division
Ten months ended December 31, 2011
Note: The largest own-source revenue is the property tax with a rate of 1.592% (for the city portion only) of Equalized Assessed Value (EAV) for the tax year 2011 .
*
*
- 174 -
CITY OF EVANSTON, ILLINOIS
Equalized Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
Levy Total Total Total
Year Residential Farm Commercial Industrial Railroad Equalized Actual Tax
Ended Property Property Property Property Property Assessed Value Value Rate
2004 1,543,464,138 16,895 479,999,412 71,684,555 446,570 2,095,611,570 6,286,834,710 1.528
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 3,041,884,087 9,125,652,261 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
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
$100 of Equalized assessed value.
- 175 -
CITY OF EVANSTON, ILLINOIS
Principal Property Taxpayers
Current year and Nine Years Ago
2013 EAV 2004 EAV
Percentage Percentage
Total of Total City Total of Total City
Equalized Assessed Taxable Equalized Assessed Taxable
Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV
Rotary International 25,119,560$ 1 1.14%Golub & Company 27,694,704$ 1 1.32%
FSP 909 Davis Street 20,171,381 2 0.92%Rotary International 20,292,050 2 0.97%
Lowe Enterprises 19,842,592 3 0.90%REP CBRE 19,828,403 3 0.95%
Church Street Plaza 15,297,739 4 0.69%Church Street Plaza 16,896,273 4 0.81%
Inland 14,032,720 5 0.64%Church & Chicago Ltd Partnership 14,968,168 5 0.71%
Omni Orrington Hotel 12,188,009 6 0.55%Omni Orrington Hotel 13,091,516 6 0.61%
Northshore Univ Health 11,529,496 7 0.52%Albertson's (Jewel & Osco)12,711,074 7 0.61%
TIAA Pk Evanston Inc 10,676,164 8 0.48%Evanston Plaza Freed 12,539,427 8 0.60%
Cambridge Realty Cap 9,571,831 9 0.43%Evanston Hotel 11,654,424 9 0.56%
New Albertson's LLC 9,422,663 10 0.43%St Francis Hospital 8,798,117 10 0.42%
Total 147,852,156$ 6.72% Total 158,474,156$ 7.56%
Total EAV 2,201,697,038$ Total EAV 2,095,611,570$
Source: Cook County
- 176 -
CITY OF EVANSTON, ILLINOIS
Property Tax Levies and Collections
Last Ten 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
2005 33,423,311 32,550,464 97.39%613,876 33,164,340 99.23%
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 See Note See Note See Note See Note See Note
Note: Levy Year 2014 is collected beyond fiscal year end 2014 through 12/31/15
Source: City Finance Division
- 177 -
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
2/28/2005 74,239 1,727,147,885$ 187,110,000$ 6,678,359$ 106,935,000$ 73,496,641$ 2,775,350,776$ 4.26%2.65%990.00$
2/28/2006 74,239 2,095,611,570 195,875,000 6,551,304 110,212,500 79,111,196 2,902,967,617 3.78%2.73%1,065.63
2/28/2007 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
2/29/2008 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
2/28/2009 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
2/28/2010 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
2/28/2011 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
12/31/2011 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
12/31/2012 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
12/31/2013 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
12/31/2014 75,570 2,201,697,038 146,624,679 12,209,139 34,614,357 99,801,183 3,262,734,750 4.53%3.06%1,320.65
Notes: (1)
(2)Excludes limited purpose special service district bonds.
(3)
Source: Cook County and City Finance Division
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.
Equalized assessed values do not include tax increment financing district incremental equalized assessed values.
- 178 -
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
2/28/2005 143,455,000$ 3,590,000$ -$ 43,655,000$ 4,575,000$ 102,200,011$ 297,475,011$ 10.72%4,007$
2/28/2006 158,490,000 3,335,000 - 37,385,000 3,710,000 101,400,675 304,320,675 10.48%4,099
2/28/2007 110,920,000 3,070,000 - 76,825,000 3,240,000 99,490,921 293,545,921 10.11%3,954
2/29/2008 115,220,000 2,785,000 - 66,530,000 2,755,000 103,410,887 290,700,887 10.01%3,916
2/28/2009 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
2/28/2010 109,078,880 2,155,000 708,552 40,236,120 1,720,000 95,370,544 249,269,096 8.59%3,358
2/28/2011 115,482,439 1,840,000 363,759 36,212,561 1,170,000 87,059,150 242,127,909 7.67%3,251
12/31/2011 120,739,206 1,840,000 - 35,115,794 1,170,000 79,081,272 237,946,272 7.44%3,195
12/31/2012 119,423,742 1,515,000 - 33,221,257 595,000 70,375,368 225,130,367 7.04%3,022
12/31/2013 119,123,639 1,175,000 - 30,411,358 305,000 64,658,382 215,673,379 6.93%2,890
12/31/2014 116,041,839 795,000 - 29,787,840 - 58,412,659 205,037,338 6.28%2,713
Notes:
Source: Source: City Finance Division
(1)Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Governmental Activities Business- Type Activities
(2) See the Schedule of Demographics and Economic Statistics for personal income and population data.
- 179 -
Percentage
of Debt City of
Applicable Evanston's
Total to City of Share of Debt
Outstanding Evanston (1)
Direct debt - bonds, notes, and
contracts outstanding 116,836,839$ 100.00%116,836,839$
Other bonded debt by taxing body
County of Cook 3,578,276,750$ 1.75%62,568,331$
Cook County Forest Preserve District 118,610,000 1.75%2,073,968
Metropolitan Water Reclamation District 2,422,620,000 1.78%43,217,428
Community College District 535 35,370,000 11.64%4,118,445
High School District 202 26,715,000 90.16%24,086,953
School District 65 73,939,213 90.16%66,665,556
Skokie Park District 4,515,000 64.00%28,972
Total Overlapping Debt 6,260,045,963$ 202,759,653$
6,376,882,802$ 319,596,492$
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
As of December 31, 2014
- 180 -
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
2/28/2006 14,380,966 6,705,865 7,675,101 865,000 177,355 7.36
2/28/2007 13,196,942 6,900,063 6,296,879 470,000 145,088 10.24
2/29/2008 13,787,014 7,138,056 6,648,958 485,000 128,713 10.83
2/28/2009 13,878,833 7,866,909 6,011,924 510,000 110,913 9.68
2/28/2010 12,742,603 7,756,760 4,985,843 525,000 91,556 8.09
2/28/2011 13,752,681 7,191,577 6,561,104 550,000 71,269 10.56
12/31/2011 12,368,533 6,146,652 6,221,881 - 24,672 252.18
12/31/2012 14,967,204 8,430,599 6,536,605 575,000 37,687 10.67
12/31/2013 14,657,748 8,175,707 6,482,041 290,000 19,688 20.93
12/31/2014 15,051,732 7,938,838 7,112,894 305,000 6,672 22.82
Note:
Ten months ended December 31, 2011
Source:Various City departments
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.
*
*
- 181 -
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
2005 74,239 2,775,350,776 37,384 32.5 94.0%9,740 5.0%
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%
Source: Various Government agencies
- 182 -
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 4,176 21%2 Evanston Northwestern Healthcare 3,000 21%2
Evanston School District 65 1,508 8%3 St. Francis Hospital 1,870 13%3
St. Francis Hospital 1,105 6%4 Evanston School District 65 1,100 8%4
City of Evanston 817 4%5 City of Evanston 891 6%5
Presbyterian Homes/McGaw Care 597 3%6 Evanston Township High School 550 4%6
School district 202 574 3%7 Presbyterian Homes/McGaw Care 500 3%7
Rotary International 513 2%8 Rotary International 400 3%8
ZS Associates 346 2%9 Solucient 275 2%9
C.E. Neifhoff & Co.324 2%10 ZS Associates 190 1%10
Total 19,494 Total 14,376
Source: City Economic Development Division
2014 2005
- 183 -
CITY OF EVANSTON, ILLINOIS
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Function/Program
General Government
City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 3.00 2.80 2.20 2.20
City Manager's Office 7.25 7.25 13.70 31.53 27.70 22.00 8.00 12.00 12.00 14.00
MBIS / IT 24.80 23.80 25.50 - - 13.00 12.00 11.50 9.00 11.00
Legal 7.00 7.00 7.00 7.00 6.00 7.00 7.00 7.00 8.00 7.00
Human Resources 7.00 8.00 8.00 8.00 8.00 5.00 5.00 7.50 8.00 8.50
Finance 26.50 25.50 26.50 29.50 28.50 19.50 19.00 17.10 17.00 17.50
Parking Systems - - - - - 13.00 12.00 12.00 9.00 12.00
Facilities Management 21.10 21.20 - - - - 19.00 20.20 16.00 -
Community Development 36.00 36.00 36.00 35.00 33.00 28.00 27.00 27.00 24.00 21.00
Community College District 535
Police 219.50 221.75 220.75 220.75 218.50 219.00 222.00 225.00 220.00 227.00
Fire 110.00 111.00 111.00 112.00 111.00 107.00 108.00 110.00 106.00 110.00
Human & Health Services 39.30 40.15 29.68 24.90 26.40 15.90 17.00 17.70 20.00 21.10
Public Works 91.25 90.25 108.45 105.45 83.25 58.80 49.00 49.25 97.00 108.45
Human Relations 4.00 4.00 - - - - - - - -
Library 67.18 67.19 66.69 69.35 67.50 52.00 52.00 56.38 63.00 63.13
Recreation, Parks & Forestry 121.30 119.90 115.90 112.75 131.75 132.00 105.00 105.21 69.00 69.64
Total General Government 784.18 784.99 771.17 758.23 743.60 694.20 665.00 680.64 680.20 692.52
Neighborhood Stabilization Program - - - - - 1.00 1.00 2.00 1.00 1.31
Emergency Telephone System 4.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 4.00 5.00
CDBG 2.00 2.00 2.00 2.00 2.00 2.00 3.00 1.53 3.00 2.60
Economic Development Fund 1.45 1.45 1.30 2.30 2.30 5.00 6.00 7.00 5.00 6.25
Downtown II TIF Fund - 1.00 - - - - - - - -
Capital Improvements Fund - - - - - 1.00 - - - -
Maple Ave. Garage 1.00 1.00 1.00 1.00 - - - - - -
Parking Fund 14.00 14.50 14.50 14.50 15.50 14.00 15.00 15.50 15.50 15.50
Water 43.00 43.00 43.00 43.00 43.00 42.00 41.00 42.50 40.00 42.50
Sewer 13.50 14.00 14.00 14.00 14.00 12.00 11.00 13.00 11.00 13.33
Solid Waste - - - - - - 6.00 10.00 8.00 9.66
Fleet Services 17.00 17.00 15.00 15.00 15.00 11.00 12.00 12.00 10.00 12.00
Insurance Fund 1.30 1.30 1.00 2.00 2.00 3.00 4.00 4.00 4.00 5.00
Total Other Functions 97.25 99.25 95.80 97.80 98.80 95.00 103.00 112.53 101.50 113.15
Total All Funds 881.43 884.24 866.97 856.03 842.40 789.20 768.00 793.17 781.70 805.67
Source: City of Evanston HR Division
Fiscal Year Ended
- 184 -
CITY OF EVANSTON, ILLINOIS
Property Tax Rates per $100 - Direct and Overlapping Governments
Last Ten Levy Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City of Evanston 1.491 1.527 1.283 1.295 1.204 1.365 1.592 1.551 1.760 1.856
Consolidated Elections 0.014 - 0.012 - 0.021 - 0.025 - - -
Cook County 0.533 0.500 0.446 0.415 0.394 0.423 0.462 0.531 0.560 0.591
Cook County Forest Preserve District 0.060 0.057 0.053 0.051 0.049 0.051 0.058 0.063 0.069 0.073
Suburban T.B. Sanitarium 0.005 0.005 - - - - - - - -
Metropolitan Water Reclamation District 0.315 0.284 0.263 0.252 0.261 0.274 0.320 0.370 0.417 0.440
North Shore Mosquito Abatement District 0.008 0.009 0.008 0.008 0.008 0.009 0.010 0.010 0.007 0.007
Evanston Township 0.055 0.058 0.050 0.050 0.042 0.046 0.011 0.010 0.053 0.056
Community College 535 0.158 0.166 0.141 0.140 0.140 0.160 0.196 0.219 0.256 0.270
School District 202 2.023 2.099 1.750 1.722 1.616 1.819 2.061 2.308 2.689 2.836
School District 65 2.890 3.045 2.535 2.552 2.401 2.655 2.818 3.149 3.671 3.872
Total tax rate for property not in park district
or special service district 7.552 7.750 6.541 6.485 6.136 6.802 7.553 8.211 9.482 10.001
Percent of total tax rate levied by City of Evanston 19.74%19.70%19.61%19.97%19.62%20.07%21.08%18.89%18.56%18.56%
Source: Cook County Assessor's office
Government Unit
Tax Levy Year
- 185 -
CITY OF EVANSTON, ILLINOIS
Water Sold by Type of Customer
Last Ten Fiscal Years
(in 100 cubic feet)
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Type of Customer
Residential 2,720,807 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
Industrial 20,096 16,307 16,579 15,722 13,624 14,195 11,552 14,758 12,392 11,627
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
Government 109,121 96,777 100,278 89,420 69,229 75,308 50,129 66,561 61,908 53,732
Total 2,850,024 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
Total direct rate
per 100 cubic feet 1.47$ 1.47$ 1.52$ 1.52$ 1.52$ 1.52$ 1.52$ 1.75$ 1.80$ 1.98$
Source: City Utilities Department
Fiscal Year Ended
- 186 -
CITY OF EVANSTON, ILLINOIS
Water Sold by Major Customers
Last Ten Fiscal Years
2/28/2006 2/28/2007 2/29/2008 2/28/2009 2/28/2010 2/28/2011 12/31/2011 12/31/2012 12/31/2013 12/31/2014
Type of Customer
Evanston residents/businesses 6,706,644$ 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$
Village of Skokie 3,018,734 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
Northwest Water Commission 3,750,200 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
Total $13,475,578 $12,194,340 12,791,917$ 12,939,397$ 12,578,968$ 13,044,038$ 10,733,731$ 14,147,326$ 13,871,409$ 14,181,502$
Source: City Utilities Department
Fiscal Year Ended
- 187 -
CITY OF EVANSTON, ILLINOIS
Operating Indicators by Function/Programs
Last Ten Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function/Program
Police
Violent Offenses 226 224 282 299 255 214 180 230 131 97
Property Offenses 2,965 2,942 2,825 2,739 2,412 2,119 2,144 2,078 1,980 1,959
911 Calls Received 56,650 55,795 59,135 56,717 52,198 35,991 51,969 44,875 42,551 44,177
Fire
Emergency responses 8,135 8,173 8,517 9,134 8,566 8,917 9,063 9,330 9,373 9617
Fires extinguished 287 220 192 185 154 157 157 154 129 120
Inspections 1,496 1,320 1,050 1,810 709 680 620 640 660 740
Other Public Works
Street resurfacing (estimated miles)3.3 3.3 3.3 3.3 3.3 3.4 3.4 3.4 3.4 4.9
Parks and Recreation
Athletic field usage (hours)unavailable 15,561 15,165 17,121 16,185 18,966 20,075 16,761 16,367 16,270
Picnic permits issued unavailable 319 373 403 431 460 437 541 445 448
Library
Volumes in collection 486,031 495,575 458,017 502,019 502,019 471,262 436,382 426,342 400,034 401,300
Total volumes borrowed 893,841 897,141 867,743 945,952 945,952 951,667 891,769 989,638 1,056,243 1,074,972
Water
New connections 74 104 61 57 28 29 16 4 0 18
Water main breaks 78 48 36 52 52 38 28 66 51 70
Average daily consumption
(millions of gallons)41.44 41.41 42.91 40.09 39.41 38.91 38.39 39.85 35.81 36.79
Peak daily consumption
(millions of gallons)80.46 66.49 66.00 65.40 58.94 57.02 65.95 69.21 56.95 48.91
Note: Indicators are not available for general government functions
Source: Various City departments
Calendar Year
- 188 -
CITY OF EVANSTON, ILLINOIS
Capital Assets Statistics by Function
Last Ten Years
2006 2007 2008 2009 2010 2011 2012 2013 2013 2014
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 Stations 5 5 5 5 5 5 5 5 5 5
Other Public Works
Streets (miles)147 147 147 147 147 147 147 147 147 147
Streetlights 5,641 5,641 5,641 5,641 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 5
Water
Water mains (miles)159 157 157 157 157 157 157 157 157 157
Fire hydrants 1347 1370 1370 1399 1399 1399 1399 1399 1399 1477
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
Calendar Year
- 189 -
TAX INCREMENT FINANCING DISTRICT
REQUIREMENTS
~AKER TILLY
Bake r Tilly Virchow Krause, LLI'
130 I W 22nd St, Ste 400
Oak Brook, lL 60523 -3389
te1630 990 3 131
fax 630 990 0039
bakertilly.com
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE
To the Honorable Elizabeth B. Tisdahl, Mayor and
Members of the City Council
Evanston , Illinois
We have audited the basic financial statements of the City of Evanston , Illinois, as of and for the year ended
December 31, 2014 , and have issued our report thereon dated Ju ly 23, 2015. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America .
In connection with our audit, nothing came to our attention that caused us to believe that the City of Evanston
failed to comply with provisions of Subsection (q) of Section 11-74.4-3 of Public Act 85-1142, "An Act in
Relation to Tax Increment Financing ", insofar as it relates to accounting matters. However, our audit was not
directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed
additional procedures , other matters may have come to our attention regarding the City of Evanston's
noncompliance with the above-referenced statute, insofar as it relates to accounting matters .
This report is intended solely for the information and use of the City Council , management, the State of Illinois ,
and others within the City and is not intended to be , and should not be, used by anyone other than the specified
~l~v~~JLP
July 23, 2015
~ an Independe nt membe r of
BAKER TILLY
INTERNATIONAL
-190 -