HomeMy WebLinkAbout2018 Annual Comprehensive Financial Report City of Evanston, Illinois
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Comprehensive Annual Financial Report
For the Year Ended December 31, 2018
CITY OF EVANSTON, ILLINOIS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended
December 31, 2018
Prepared by the Finance Division of the City Manager’s Office
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Principal Officials ......................................................................................................... i
Organization Chart ........................................................................................................ ii
Certificate of Achievement for Excellence in Financial Reporting .............................. iii
Letter of Transmittal ..................................................................................................... iv-xi
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT .................................................................... 1-3
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
Management’s Discussion and Analysis .................................................................. MD&A 1-8
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ............................................................................... 4-5
Statement of Activities ................................................................................... 6-7
Fund Financial Statements
Governmental Funds
Balance Sheet ............................................................................................. 8-9
Reconciliation of Fund Balances of Governmental Funds to
the Governmental Activities in the Statement of Net Position ................ 10
Statement of Revenues, Expenditures, and
Changes in Fund Balances ....................................................................... 11
Reconciliation of Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities .................................................. 12
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)
Basic Financial Statements (Continued)
Fund Financial Statements (Continued)
Proprietary Funds
Statement of Net Position .......................................................................... 13-14
Statement of Revenues, Expenses, and
Changes in Fund Net Position ................................................................. 15
Statement of Cash Flows ........................................................................... 16-17
Fiduciary Funds
Statement of Fiduciary Net Position .......................................................... 18
Statement of Changes in Plan Net Position ............................................... 19
Notes to Financial Statements ............................................................................. 20-78
Required Supplementary Information
Schedule of Changes in the Employer’s Total OPEB Liability
and Related Ratios
Other Postemployment Benefits Plan ................................................................. 79
Schedule of Employer Contribution0
Illinois Municipal Retirement Fund ............................................................... 80
Police Pension Fund ....................................................................................... 81
Firefighters' Pension Fund .............................................................................. 82
Schedule of Changes in the Employer’s Net Pension Liability
and Related Ratios
Illinois Municipal Retirement Fund ................................................................ 83
Police Pension Fund ....................................................................................... 84
Firefighters’ Pension Fund ............................................................................. 85
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund .................................................................... 86
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)
Required Supplementary Information (Continued)
Schedule of Investment Returns
Police Pension Fund ....................................................................................... 87
Firefighters’ Pension Fund ............................................................................. 88
Notes to Required Supplementary Information ................................................... 89
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Schedule of Revenues - Budget and Actual - General Fund ............................... 90-93
Schedule of Expenditures - Budget and Actual - General Fund.......................... 94
Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Obligation Debt Fund ....................................................................... 95
NONMAJOR GOVERNMENTAL FUNDS
Combining Balance Sheet ................................................................................... 96-99
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances .......................................................................... 101-103
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Motor Fuel Tax Fund ...................................................................................... 104
Emergency Telephone System Fund .............................................................. 105
Neighborhood Improvement Fund ................................................................. 106
Affordable Housing Fund ............................................................................... 107
HOME Fund ................................................................................................... 108
Community Development Block Grant Fund ................................................. 109
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
Community Development Block Grant Fund ................................................. 110
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Community Development Loan Fund ............................................................ 111
Neighborhood Stabilization Program 2 Fund ................................................. 112
Special Service District No. 4 Fund ............................................................... 113
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES (Continued)
NONMAJOR GOVERNMENTAL FUNDS (Continued)
Schedule of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
Good Neighbor Fund ...................................................................................... 114
General Assistance Fund ................................................................................ 115
Capital Improvements Fund ........................................................................... 116
Crown Capital Fund ....................................................................................... 117
Special Assessment Capital Projects Fund ..................................................... 118
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual - Debt Service Funds............. 119-120
ENTERPRISE FUNDS
Water Fund
Schedule of Revenues, Expenses, and Changes in Net Position -
Budget and Actual ........................................................................................ 121
Water Fund - Operation and Maintenance Account
Schedule of Operating Revenues - Budget and Actual................................... 122
INTERNAL SERVICE FUNDS
Combining Statement of Net Position ................................................................. 123
Combining Statement of Revenues, Expenses, and
Changes in Net Position .................................................................................... 124
Combining Statement of Cash Flows .................................................................. 125
COMPONENT UNIT - PUBLIC LIBRARY
All Governmental Funds
Combining Balance Sheet/Statement of Net Position .................................... 126-127
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances/Statement of Activities ...................................... 128-129
CITY OF EVANSTON, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES (Continued)
COMPONENT UNIT - PUBLIC LIBRARY (Continued)
Major Governmental Funds
Library Operating Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual .......................................................... 130
SUPPLEMENTAL DATA
Consolidated Year End Financial Report .................................................................... 131
STATISTICAL SECTION
Net Position by Component .......................................................................................... 132
Changes in Net Position ................................................................................................ 133-134
Fund Balances, Governmental Funds ........................................................................... 135
Changes in Fund Balances, Governmental Funds......................................................... 136-137
Equalized Assessed Value and Actual Value of Taxable Property ............................... 138
Principal Property Taxpayers ........................................................................................ 139
Property Tax Levies and Collections ............................................................................ 140
Ratios of General Bonded Debt Outstanding ................................................................ 141
Ratios of Outstanding Debt by Type ............................................................................. 142
Direct and Overlapping Governmental Activities Debt ................................................ 143
Legal Debt Margin ........................................................................................................ 144
Pledged-Revenue Coverage .......................................................................................... 145
Demographic and Economic Statistics ......................................................................... 146
Principal Employers ...................................................................................................... 147
Full-Time Equivalent City Government Employees by Function................................. 148
Property Tax Rates per $100 - Direct and Overlapping Governments ......................... 149
Water Sold by Type of Customer (in 100 cubic feet) ................................................... 150
Water Sold by Major Customers ................................................................................... 151
Operating Indicators by Function/Program ................................................................... 152
Capital Assets Statistics by Function ............................................................................ 153
COMPLIANCE SECTION
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE
WITH STATE OF ILLINOIS PUBLIC ACT 85-1142 ............................................... 154
INTRODUCTORY SECTION
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CITY OF EVANSTON
Principal Officials
December 31, 2018
______________________________________________________________________
LEGISLATIVE
Stephen H. Hagerty, Mayor
Judy Fiske 1st Ward
Peter Braithwaite 2nd Ward
Melissa A. Wynne 3rd Ward
Donald N. Wilson 4th Ward
Robin Rue Simmons 5th Ward
Thomas M. Suffredin 6th Ward
Eleanor Revelle 7th Ward
Ann Rainey 8th Ward
Cicely L. Fleming 9th Ward
Devon Reid, City Clerk
EXECUTIVE
Wally Bobkiewicz, City Manager
Hitesh Desai, CFO / Treasurer
ADMINISTRATIVE
Administrative Services Director City Attorney
Erika Storlie
Health and Human Services Director
Evonda Thomas-Smith
Community Development Director
Johanna Leonard
Parks, Recreation, & Community
Services Director
Lawrence Hemingway
Michelle Masoncup
Public Works Agency Director
Dave Stoneback
Police Chief
Richard Eddington
Fire Chief
Brian Scott
Library Director
Karen Danczak Lyons
City of Evanston
Organizational Chart
- ii -
Residents
Mayor
City Council
City Clerk
Police
Fire Community
Development
Public Works
Agency
Health and
Human
Services
Parks, Recreation
& Community
Services
Law
Administrative
Services
City Manager Assistant City
Manager
CFO/City
Treasurer
Boards and
Commissions
Library
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FINANCIAL SECTION
1415 West Diehl Road, Suite 400
Naperville, IL 60563
630.566.8400
INDEPENDENT AUDITOR’S REPORT
The Honorable Stephen H. Hagerty, Mayor
and Members of the City Council
City of Evanston, Illinois
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City of Evanston, Illinois (the City), as of and for the year ended
December 31, 2018, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of Amer ica; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit . We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits co ntained in Government Auditing
Standards, issued by the Comptroller General of the United States . The financial statements of the
Evanston Public Library were not audited in accordance with Government Auditing Standards.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements . The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we express no such opinion . An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall p resentation
of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund, and the aggregate rem aining fund
information of the City of Evanston, Illinois, as of December 31, 201 8, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year ended in
conformity with accounting principles generally accepted i n the United States of America.
Change in Accounting Principle
The City adopted GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, which established standards for measuring and
recognizing liabilities, deferred inflows and outflows of resources and expenses and modified
certain disclosures in the notes to financial statements and the required supplementary
information as discussed in Note 17 to the basic financial statements. Our opinion is not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the other required supplementary information be
presented to supplement the basic financial statements . Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic , or historical context. We have applied
certain limited procedures to the required supplemen tary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements . We do not
express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The introductory section,
combining and individual fund financial statements and schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly
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to the underlying accounting and other records used to prepare t he basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the basic financial statements as
a whole. The introductory and statistical sections have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Governmental Auditing Standards, we have also issued our report dated
June 27, 2019 on our consideration of the City’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing and not
to provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit perfor med in accordance with Governmental Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
Naperville, Illinois
June 27, 2019
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GENERAL PURPOSE EXTERNAL
FINANCIAL STATEMENTS
(Unaudited)
MD&A 1
MANAGEMENT’S
DISCUSSION AND ANALYSIS
DECEMBER 31, 2018
The City of Evanston (the City) Discussion and Analysis is designed to (1) assist the reader in focusing on
significant financial issues, (2) provide an overview of the City's financial activity, (3) identify changes in
the City's financial position (its ability to address the next and subsequent year challenges), (4) identify any
material deviations from the financial plan (the approved budget), and (5) identify individual fund issues
or concerns. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on page 4 of
this report.
FINANCIAL HIGHLIGHTS
The city has implemented GASB Statement No.75 (Accounting and Financial Reporting for Post-
Employment Benefits other than Pensions) starting with fiscal year 2018 . As a result of this change, Net
Position as of January 1, 2018 has been restated to $176,534,175 from an original number of $191,646,515.
A. The City's net position as originally stated in the 2017 Comprehensive Annual Financial Report
(CAFR) was $191,646,515 for Governmental and Business Type Activities. The restated net position
for 2017 is $176,534,175. The 2018 net position decreased by $13,848,241 or 7.23%.
a. The change in accounting principle amount for Governmental Activities was a decrease of
$14,735,431.
b. The change in accounting principle amount for Business-type Activities was a decrease of
$376,909.
B. The governmental activities revenue increased by $5,302,817 or 4.1% from the prior period principally
due to increase in taxes. The expenses increased by $19,501,947 or 14.4% principally due to an increase
in public safety related expenses.
C. The business-type activities revenue decreased by $2,065,147 or 5.0%. The expenses increased by
$1,610,402 or 5.0% from the prior period.
D. The total cost of all City programs increased by $21,112,349 or 12.6%. This increase was mainly
attributable to an increase in public safety related expenses
USING THIS ANNUAL REPORT
The financial statements focus on both the City as a whole (government-wide) and on the major individual
funds. Both perspectives (government -wide and major fund) allow the user to address relevant questions,
broaden a basis for comparison and enhance the City's accountability.
The City's financial reporting includes the funds of the City (primary government) and additionally,
organizations for which the City is accountable (component unit - the Library). Effective May 1, 2014 the
City of Evanston assumed all rights, powers, assets, properties and duties of the Evanston Township,
including the responsibility of providing the services that were previously provided by the Township. The
functions of the Township are reported along with the City, while the Library financials are shown as a
discrete component unit beginning in 2013.
(Unaudited)
MD&A 2
REPORTING THE CITY AS A WHOLE
Government-wide Financial Statements
The City's annual report includes two government-wide financial statements. These statements provide both
short-term and long-term information about the City's overall status. Financial reporting at this level uses
a perspective similar to that found in the private sector with its basis in full accrual accounting and
elimination or reclassification of internal activities (e.g., the City’s Fleet Services Fund).
The first of these government-wide statements is the Statement of Net Position. This is the City-wide
statement of financial position presenting information that includes all the City's assets and liabilities, with
the difference reported as net position. Beginning in 2013, this statement also includes separate presentation
of Library assets and liabilities. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City as a whole is improving or deteriorating. Evaluation
of the overall health of the City would extend to other non-financial factors such as diversification of the
taxpayer base or the condition of City infrastructure in addition to the financial information provided in this
report.
The second government-wide statement is the Statement of Activities - which reports how the City's net
position changed during the current fiscal period. All current period revenues and expenses for the city and
Library are included regardless of when the cash was received or paid. An important purpose of the design
of the statement of activities is to show the financial reliance of the City's distinct activities or functions on
revenues provided by all government-wide sources.
Both government-wide financial statements distinguish governmental activities of the City that are
principally supported by taxes and intergovernmental revenues, such as grants, from business-type activities
that are intended to recover all or a significant portion of their costs through user fees and charges.
Governmental activities include general government, public safety, public service, fleet service, insurance
fund, and culture and recreation. Business-type activities include water and sewer utilities, parking, and
garages. Fiduciary activities, such as employee pension plans and agency funds, are not included in the
government-wide statements since these assets are not available to fund City programs.
The government-wide financial statements are presented on pages 4 - 7 of this report.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS
Fund Financial Statements
A fund is an accountability unit used to maintain control over resources segregated for specific activities or
objectives. The City uses funds to ensure and demonstrate compliance with finance-related laws and
regulations. Within the basic financial statements, fund financial statements focus on the City's most
significant funds, rather than the City as a whole. Major funds are separately reported, while all others are
combined into a single aggregated presentation. Individual fund data for non-major funds is provided in
the form of combining schedules in a later section of this report.
The City has three kinds of funds:
Governmental funds are reported in the fund financial statements and encompass essentially the same
functions reported as governmental activities in the government -wide financial statements. However, the
focus is very different with fund statements providing a distinctive view of the City's governmental funds.
These statements report short-term fiscal accountability focusing on the use of spendable resources and
balances of spendable resources available at the end of the period. They are useful in evaluating annual
financing requirements of governmental programs and the commitment of spendable resources for the near-
term.
(Unaudited)
MD&A 3
Since the government-wide focus includes the long-term view, comparisons between these two perspectives
may provide insight into the long-term impact of the short-term financing decision. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to assist in understanding the differences between these two perspectives.
Budgetary comparison statements for General Fund are included in the required supplementary section of
this report. Budgetary comparison schedules for various special revenue funds and the debt service funds
are also included in the supplementary information section of this report. These statements and schedules
demonstrate compliance with the City's adopted and final revised budget.
The basic government fund financial statements are presented on pages 8 – 12 of this report.
Proprietary funds reported in the fund financial statements generally report services for which the City
charges customers a fee. There are two kinds of proprietary funds. These are enterprise funds and internal
service funds. Enterprise funds essentially encompass the same functions reported as business-type
activities in the government-wide statements. Services such as the water utilities and the parking garages
are provided to customers external to the City organization. Internal service funds provide services and
charge fees to customers within the City organization, such as equipment services (repair and maintenance
of city vehicles) and the insurance fund. Because the City's internal service funds primarily serve
governmental functions, they are included within the governmental activities of the government-wide
financial statements.
Proprietary fund statements and statements for discretely presented component units (reporting is similar
to proprietary funds) provide both short-term and long-term financial information consistent with the focus
provided by the government-wide financial statements. Individual fund information for internal service
funds is found in combining schedules in a later section of this report.
The basic proprietary fund financial statements are presented on pages 13 - 17 of this report.
Fiduciary funds such as the Police and Firefighter's pension plans are reported in the fiduciary fund financial
statements, but are excluded from the government-wide reporting. Fiduciary fund financial statements
report resources that are not available to fund City programs. These financial statements report similarly
to proprietary funds.
The basic fiduciary fund financial statements are presented on pages 18 - 19 of this report.
Notes to the financial statements
The accompanying notes to financial statements provide information essential to a full understanding of the
government-wide and fund financial statements. The notes to the financial statements begin on page 20 of
this report.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the City's progress in funding its obligations to provide
pension benefits to its employees. Other supplementary information includes detail by fund and component
unit for receivables, payables, transfers, and payments within the reporting entity. Required supplementary
information can be found on pages 79 – 89 of this report.
(Unaudited)
MD&A 4
Major funds and component units are reported in the basic financial statements, as discussed. Combining
statements, individual statements and schedules for nonmajor and internal service funds are presented in a
subsequent section of this report beginning on page 90. Additional information on capital assets and
long-term debt can be found on page 37 and 47, respectively.
Financial Analysis of the City as a Whole
The City's combined net position decreased by $13,848,241 from $176,534,175 to $162,685,934.
STATEMENT OF POSITION
The City’s decrease in Net Position is principally due to increased cost in public safety resulting from
increased Pension liability.
The City's total revenues increased by $3,237,670 or 1.9%. The City's total expenses for all programs
increased by $21,112,349 or 12.6%. Business-type activity revenues decreased by $2,065,147 in the current
fiscal period mainly due to lower water revenues from the sale of water. Business-type activity expenses
increased by $1,610,402, while Governmental activity expense experienced an increase of $19,501,947.
The list of expenses can be found in the table below.
The governmental activities experienced a decrease of $17,406,089 in the net position balance. This is
principally due to increased cost in public safety.
The business-type activities experienced an increase of $3,557,848 in the net position balance primarily
due to the net operating surplus in the Sewer Fund in the amount of $4,628,685.
Governmental Activities Business-type Activities Total Primary Government
2018 2017 2018 2017 2018 2017
Current and Other Assets 125,284,013$ 99,861,288$ 21,364,336$ 19,131,286$ 146,648,349$ 118,992,574$
Capital Assets 186,607,522 173,725,753 346,085,019 345,208,112 532,692,541 518,933,865
Total Assets 311,891,535 273,587,041 367,449,355 364,339,398 679,340,890 637,926,439
Deferred Outflows 33,963,760 44,109,463 716,451 2,932,513 34,680,211 47,041,976
345,855,295 317,696,504 368,165,806 367,271,911 714,021,101 684,968,415
Long-Term Liabilities 398,461,618 358,414,011 63,837,397 71,064,803 462,299,015 429,478,814
Other Liabilities 12,119,814 12,289,943 3,825,977 2,716,558 15,945,791 15,006,501
Total Liabilities 410,581,432 370,703,954 67,663,374 73,781,361 478,244,806 444,485,315
Deferred Inflows 68,464,593 48,041,760 4,625,768 794,825 73,090,361 47,246,935
Total Liabilities and
Deferred Inflows 479,046,025 418,745,714 72,289,142 74,576,186 551,335,167 491,732,250
Net Investment in
Capital Assets 52,536,443 51,574,591 283,980,522 278,446,440 336,516,965 330,021,031
Restricted 8,650,574 11,990,220 - - 8,650,574 11,990,220
Unrestricted (Deficit)(194,377,747) (164,614,021) 11,896,142 14,249,285 (182,481,605) (150,364,736)
Total Net Position (133,190,730)$ (101,049,210)$ 295,876,664$ 292,695,725$ 162,685,934$ 191,646,515$
(Unaudited)
MD&A 5
The following table provides a summary of the City's changes in net position:
STATEMENT OF CHANGES IN NET POSITION
Governmental Activities Business-type Activities Total Primary Government
2018 2017 2018 2017 2018 2017
Revenue
Program Revenues:
Charges for services 26,967,262$ 26,525,620$ 38,662,058$ 40,657,359$ 65,629,320$ 67,182,979$
Operating grants and
contributions 5,243,789 5,931,678 - - 5,243,789 5,931,678
Capital grants and
contributions 125,000 325,000 - - 125,000 325,000
General Revenues:
Sales taxes 16,962,657 16,070,630 - - 16,962,657 16,070,630
Property taxes 47,101,540 46,563,227 - - 47,101,540 46,563,227
Utility taxes 6,667,199 6,607,719 - - 6,667,199 6,607,719
Income taxes 7,185,203 6,767,021 - - 7,185,203 6,767,021
Other 24,606,840 21,635,913 - 203,532 24,606,840 21,839,445
Investment income 778,276 234,780 234,069 113,874 1,012,345 348,654
Total Revenue 135,637,766 130,661,588 38,896,127 40,974,765 174,533,893 171,636,353
Expenses
General management and
support 20,015,842 20,889,788 - - 20,015,842 20,889,788
Public safety 80,461,868 61,191,026 - - 80,461,868 61,191,026
Public works 22,717,732 24,793,288 - - 22,717,732 24,793,288
Health and human
resources development 3,455,215 3,354,193 - - 3,455,215 3,354,193
Recreation and cultural
opportunities 14,060,670 14,743,753 - - 14,060,670 14,743,753
Housing and economic
development 9,129,587 7,022,697 - - 9,129,587 7,022,697
Interest 4,683,429 3,354,290 - - 4,683,429 3,354,290
Water - - 12,963,491 12,239,035 12,963,491 12,239,035
Sewer - - 6,721,489 6,540,536 6,721,489 6,540,536
Solid Waste - - 4,851,568 4,906,658 4,851,568 4,906,658
Motor vehicle parking
system - - 9,321,243 8,574,651 9,321,243 8,574,651
Total Expense 154,524,343 135,349,035 33,857,791 32,260,880 188,382,134 167,609,915
Increase (decrease) in net
position before transfers (18,886,577) (4,687,447) 5,038,336 8,713,885 (13,848,241) 4,026,438
Transfers 1,480,488 3,797,420 (1,480,488) (3,797,420) - -
Increase/(Decrease) in
Net Position (17,406,089) (890,027) 3,557,848 4,916,465 (13,848,241) 4,026,438
Net Position - Beginning (115,784,641) (100,159,183) 292,318,816 287,779,260 176,534,175 187,620,077
Net Position - Ending (133,190,730)$ (101,049,210)$ 295,876,664$ 292,695,725$ 162,685,934$ 191,646,515$
(Unaudited)
MD&A 6
Financial Analysis of the City's Funds
Governmental Funds
As discussed, governmental funds are reported in the fund statement with a short-term inflow and outflow
of spendable resources focus. This information is useful in assessing resources available at the end of the
period in comparison with upcoming financing requirements. Governmental funds reported fund balances
of $56,344,374 as of December 31, 2018 which includes $309,966 non-spendable, $25,651,661 restricted,
$21,367,721 assigned and $9,015,026 unassigned fund balance. The restricted fund balance consists of
amounts required to be set aside by external authorities.
Fund Balance Amounts reported for governmental activities are different than the statement of net position
because of the treatment of capital assets, liabilities, payables and most importantly pension liabilities. This
reporting difference is clearly stated on page 10 of this report.
Major Governmental Funds
The General Fund is the City's primary operating fund and the largest source of day-to-day service delivery.
The fund balance of the General Fund reported an increase of $507,366 with actual revenue of $107,929,545
and expenses of $112,162,903. The City generated better than expected taxes for the year.
Starting FY 2016 the Police and Fire pension transfers were included in the Adopted Budget documents.
These had previously been reported in a separate fund. So now, Property tax and Personal Property
Replacement Taxes are included in the General Fund and then transferred to the respective pension funds.
The fund balance of the General Obligation Debt Fund had an increase of $176,200 from $241,781 to
$417,981.
Combined Nonmajor Governmental Funds
Combined nonmajor fund balances totaled $42,071,345, an increase of $18,798,206 from prior period of
$23,273,139. Non-major funds with surpluses for the fiscal year include Emergency Telephone System,
Neighborhood Improvement, Good Neighbor, Chicago Main TIF, SSD #6, Dempster Dodge TIF, Howard
Ridge TIF, West Evanston TIF, Capital Improvements and Crown Capital Project. Nonmajor funds with
deficits for the period include Motor Fuel, Affordable Housing, Home Fund, Community Development
Block Grant, Community Development Loan, SSD #4, General Assistance, and Special Assessment Capital
Projects.
Proprietary Funds
The proprietary fund statements share the same focus as the government -wide statements, reporting both
short-term and long-term information about financial status.
The proprietary funds operated by the City are the Water, Sewer, Solid Waste and Parking Funds. These
funds have a combined net increase of $3,557,848 in the net position. The Sewer Fund reported the highest
increase in the amount of $4,628,685. This increase is mainly due to the operating surplus and reduced debt
service expense. The Solid Waste Fund added $347,476 to the net position during the year while Water and
Parking Funds reported a decrease of $615,415 and $802,898, respectively. Although net position in these
proprietary funds showed an overall healthy increase, it is important to keep in mind that the Sewer Fund
carries a substantial debt level followed by Parking and Water Funds with lesser debts.
(Unaudited)
MD&A 7
Internal Service Funds
The City's combined internal service fund’s net position decreased by $5,069,026 from $4,737,834, as of
January 1, 2018 to a net deficit balance of $331,192 as of December 31, 2018. Fleet Fund and Equipment
Replacement reported a combined net decrease in net position of $613,684. The net deficit in the Insurance
Fund increased by $4,455,342 mainly due to claim settlements and legal fees.
General Fund Budgetary Highlights
Total budgetary basis revenues for the General Fund were $107,929,545 while total expenditures were
$112,162,903. Overall General Fund revenue came in higher than budget by $1,107,208. Total expenditures
in the General Fund were higher than budgeted amounts by $1,297,618. The actual net deficiency of
$4,233,358 was offset by $4,740,724 in net transfers to the General Fund from other funds.
Capital Assets
The City’s Capital Asset policy generally includes capitalizing assets or properties with $20,000 or more
in value (with the exception of vehicles to the $20,000 threshold). The City's capital assets (net of
depreciation) for governmental and business-type activities as of December 31, 2018, were $532,692,541.
The governmental funds capital assets had a net increase of $12,881,769, while business type capital assets
increased by $876,907. Overall, capital assets increased by 2.7% for the City as a whole. The net increase
in governmental funds capital assets were principally due to an increase in capital projects for the year.
Readers desiring more detailed information on capital asset activity should refer to Note 5 in the Notes to
the Financial Statements.
Long-Term Debt
As of December 31, 2018, the City had outstanding total general obligation bonded debt of $170,540,857
of which $25,839,037 was for business type activities to be paid for by the City's Parking, Water, Solid
Waste and Sewer Funds. This represents a $27,069,989 increase from 2017. The City's general obligation
debt service principal payments for 2018 totaled $14,738,169. During the current year, the City issued
$50,488,158 and refunded $8,680,000 in general obligation bonds. As a home rule government under
Illinois law, there is no legal debt limit for the City. Readers desiring more detailed information on long -
term debt should refer to Note 8 in the Notes to the Financial Statements.
Bond Ratings
The City's general obligation bonds are rated Aa2 by Moody's Investor Rating Service and AA+ by Fitch
Ratings.
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, Use Tax, and Real Estate Transfer Tax came in higher than budgeted revenues while Utility
Taxes, Cable franchise fees and Municipal Hotel Taxes were below budget. The city received $4,585,900
in building permits reflective of strong construction activity in Evanston. The City’s new transportation
network provider tax performed lot better bringing in revenue of $492,185.
(Unaudited)
MD&A 8
The unemployment rate in Evanston has stayed slightly below/same level as many other cities in the State
due in part to the stable economy that includes Northwestern University. The City continues to maintain its
lower unemployment rate compared to state and federal unemployment levels. The primary employers in
the City include Northwestern University, two hospitals, the local high school, and elementary school
district, Rotary International, several not-for-profit organizations, and numerous retail businesses and
restaurants. The City’s equalized assessed value for real property for 2018 reported a slight decrease of
0.7% from $2,740,060,120 to $2,720,580,914.
Contacting the City's Financial Management
This financial report is designed to provide a general overview of the City's finances, comply with finance-
related laws and regulations, and demonstrate the City's commitment to public accountability. If you ha ve
questions about this report or would like to request additional information, contact the City Manager’s
Office, Finance Division at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201, Telephone
847-866-2934, or access the website at www.cityofevanston.org.
BASIC FINANCIAL STATEMENTS
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
December 31, 2018
Component Unit
Governmental Business-Type Evanston Public
Activities Activities Total Library
ASSETS
Cash and equivalents 22,062,904$ 12,499,174$ 34,562,078$ 6,746,143$
Investments 30,529,881 - 30,529,881 -
Receivables (net, where applicable, of
allowances for uncollectibles)
Property taxes 42,535,188 820,000 43,355,188 7,103,437
Utility taxes 691,680 - 691,680 -
Accounts - 4,472,608 4,472,608 -
Notes 300,000 209,000 509,000 -
Loans 8,287,151 - 8,287,151 -
Special assessments 505,950 - 505,950 -
Accrued interest - - - -
Other 2,242,069 262,225 2,504,294 95
Due from other governments 7,594,341 - 7,594,341 -
Due from component unit 184,855 - 184,855 -
Due from fiduciary funds - - - -
Internal balances (20,676) 20,676 - -
Inventories 1,257,595 775,424 2,033,019 -
Prepaid items 543,658 126,142 669,800 -
Net pension asset - IMRF 8,569,417 2,179,087 10,748,504 1,100,800
Capital assets
Capital assets not being depreciated 53,638,172 7,082,294 60,720,466 311,380
Capital assets being depreciated, net 132,969,350 339,002,725 471,972,075 12,012,649
Total Assets 311,891,535 367,449,355 679,340,890 27,274,504
DEFERRED OUTFLOWS OF RESOURCES
Pension Items - Police 18,486,534 - 18,486,534 -
Pension Items - Fire 12,660,843 - 12,660,843 -
Pension Items - IMRF 2,816,383 716,451 3,532,834 361,790
Total Deferred Outflows of Resources 33,963,760 716,451 34,680,211 361,790
Total Assets and Deferred Outflows
of Resources 345,855,295 368,165,806 714,021,101 27,636,294
Primary Government
(This statement is continued on the following page.)
- 4 -
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
December 31, 2018
Component Unit
Governmental Business-Type Evanston Public
Activities Activities Total Library
LIABILITIES
Vouchers payable 9,305,731$ 3,507,212$ 12,812,943$ 316,487$
Retainage payable - 61,633 61,633 -
Deposits payable - 760 760
Accrued payroll 1,164,967 - 1,164,967 -
Accrued interest 416,505 256,372 672,877 -
Due to other governments 98,654 - 98,654 -
Due to primary government - - - 184,855
Due to fiduciary fund 71,534 - 71,534 -
Unearned revenue 1,062,423 - 1,062,423 -
Noncurrent liabilities
Due within one year 17,560,617 6,768,222 24,328,839 272,882
Due in more than one year 380,901,001 57,069,175 437,970,176 5,236,225
Total Liabilities 410,581,432 67,663,374 478,244,806 6,010,449
DEFERRED INFLOWS OF RESOURCES
Pension items - Police Pension 7,430,082 - 7,430,082 -
Pension items - Fire Pension 2,645,470 - 2,645,470 -
Pension items - IMRF 14,763,695 3,754,208 18,517,903 1,896,498
OPEB items 1,090,158 51,560 1,141,718 18,473
Property taxes levied for future periods 42,535,188 820,000 43,355,188 7,103,437
Total Deferred Inflows of Resources 68,464,593 4,625,768 73,090,361 9,018,408
Total Liabilities and Deferred Inflows
of Resources 479,046,025 72,289,142 551,335,167 15,028,857
NET POSITION
Net investment in capital assets 52,536,443 283,980,522 336,516,965 7,907,468
Restricted for
Highway maintenance 2,036,054 - 2,036,054 -
Emergency telephone system 762,065 - 762,065 -
HUD approved projects 243,871 - 243,871 -
Neighborhood improvements 1,580,856 - 1,580,856 -
Capital improvements - - - 308,399
Debt service 3,483,975 - 3,483,975 4,582
General assistance 601,694 - 601,694 -
Endowment - - - 3,768,611
Unrestricted (194,435,688) 11,896,142 (182,539,546) 618,377
Total Net Position (133,190,730)$ 295,876,664$ 162,685,934$ 12,607,437$
Primary Government
See accompanying notes to financial statements.
- 5 -
CITY OF EVANSTON, ILLINOIS
Statement of Activities
For the Fiscal Year Ended December 31, 2018
Operating Capital
FUNCTIONS/PROGRAMS Charges for Grants and Grants and
PRIMARY GOVERNMENT Expenses Services Contributions Contributions
Governmental Activities
General management and support 20,015,842$ 8,984,958$ 19,600$ -$
Public safety 80,788,507 4,088,147 507,126 -
Public works 22,717,732 765,844 2,113,316 -
Health and human resource development 3,455,215 808,262 257,077 -
Recreational and cultural opportunities 14,060,670 6,037,484 290,546 -
Housing and economic development 9,129,587 6,282,567 2,056,124 125,000
Interest 4,683,429 - - -
Total governmental activities 154,850,982 26,967,262 5,243,789 125,000
Business-Type Activities
Water 12,963,491 15,642,185 - -
Sewer 6,734,980 11,919,244 - -
Solid waste 4,851,568 4,083,077 - -
Motor vehicles parking system 9,321,243 6,621,043 - -
Total business-type activities 33,871,282 38,265,549 - -
Total Primary Government 188,722,264$ 65,232,811$ 5,243,789$ 125,000$
Evanston Public Library
Community services 8,446,704$ 246,031$ 473,467$ -$
Interest 33,017 - - -
Total Evanston Public Library 8,479,721$ 246,031$ 473,467$ -$
Program Revenues
- 6 -
Component
Unit
Total Evanston
Governmental Business-Type Primary Public
Activities Activities Government Library
(11,011,284)$ -$ (11,011,284)$ -$
(76,193,234) - (76,193,234) -
(19,838,572) - (19,838,572) -
(2,389,876) - (2,389,876) -
(7,732,640) - (7,732,640) -
(665,896) - (665,896) -
(4,683,429) - (4,683,429) -
(122,514,931) - (122,514,931) -
- 2,678,694 2,678,694 -
- 5,184,264 5,184,264 -
- (768,491) (768,491) -
- (2,700,200) (2,700,200) -
- 4,394,267 4,394,267 -
(122,514,931) 4,394,267 (118,120,664) -
- - - (7,727,206)
- - - (33,017)
- - - (7,760,223)
General Revenues
Taxes
Property tax 47,101,540 410,000 47,511,540 6,931,368
Other taxes 8,322,498 - 8,322,498 -
Personal property replacement taxes 1,350,173 - 1,350,173 -
Sales and home rule tax 16,962,657 - 16,962,657 -
Utility tax 6,667,199 - 6,667,199 -
Liquor tax 3,211,772 - 3,211,772 -
Parking tax 2,983,168 - 2,983,168 -
Real estate transfer tax 3,805,801 - 3,805,801 -
Income tax 7,185,203 - 7,185,203 -
Investment income 778,276 234,069 1,012,345 (167,644)
Gain on sale of capital assets - - - -
Miscellaneous 5,260,067 - 5,260,067 76,193
Transfers 1,480,488 (1,480,488) - -
Total 105,108,842 (836,419) 104,272,423 6,839,917
Change in Net Position (17,406,089) 3,557,848 (13,848,241) (920,306)
Net Position, January 1 (101,049,210) 292,695,725 191,646,515 13,720,890
Change in accounting principle (14,735,431) (376,909) (15,112,340) (193,147)
Net Position, January 1 (Restated)(115,784,641) 292,318,816 176,534,175 13,527,743
Net Position, December 31 (133,190,730)$ 295,876,664$ 162,685,934$ 12,607,437$
Net (Expense) Revenue and Change in Net Position
Primary Government
See accompanying notes to financial statements.
- 7 -
General Nonmajor Total
Obligation Governmental Governmental
General Debt Service Funds Funds
Cash and equivalents 3,061,672$ 56,712$ 18,064,493$ 21,182,877$
Investments 1,046,721 134,440 29,348,720 30,529,881
Receivables
Property taxes 30,009,195 10,879,993 1,646,000 42,535,188
Utility 691,680 - - 691,680
Notes 300,000 - 0 300,000
Loans - - 8,287,151 8,287,151
Special assessments - - 505,950 505,950
Other 2,237,788 - 4,281 2,242,069
Due from other governments 6,878,584 - 715,757 7,594,341
Due from component unit 184,855 - - 184,855
Due from other funds 5,598,151 226,829 154,575 5,979,555
Advances to other funds - - 1,500,000 1,500,000
Inventories 9,966 - - 9,966
Total Assets 50,018,612$ 11,297,974$ 60,226,927$ 121,543,513$
ASSETS
December 31, 2018
CITY OF EVANSTON, ILLINOIS
Balance Sheet
Governmental Funds
(This statement is continued on the following page.)
- 8 -
General Nonmajor Total
Obligation Governmental Governmental
General Debt Service Funds Funds
LIABILITIES
Vouchers payable 2,997,845$ -$ 5,814,961$ 8,812,806$
Accrued payroll 1,164,967 - - 1,164,967
Due to other governments - - 98,654 98,654
Due to other funds - - 802,866 802,866
Due to fiduciary funds 71,534 - - 71,534
Advances from other funds 1,857,600 - - 1,857,600
Unearned revenue 62,423 - 1,000,000 1,062,423
Total Liabilities 6,154,369 - 7,716,481 13,870,850
DEFERRED INFLOWS OF RESOURCES
Long-term loans - - 8,793,101 8,793,101
Property taxes levied for future periods 30,009,195 10,879,993 1,646,000 42,535,188
Total Deferred Inflows of Resources 30,009,195 10,879,993 10,439,101 51,328,289
Total Liabilities and Deferred Inflows
of Resources 36,163,564 10,879,993 18,155,582 65,199,139
FUND BALANCES
Nonspendable
Notes 300,000 - - 300,000
Inventory 9,966 - - 9,966
Restricted
Highway maintenance - - 2,036,054 2,036,054
Emergency telephone system - - 762,065 762,065
HUD approved projects - - 243,871 243,871
Neighborhood improvements - - 1,539,328 1,539,328
Debt service - 417,981 3,065,994 3,483,975
Township - - 601,694 601,694
Capital improvements - - 16,984,674 16,984,674
Assigned
Capital improvements - - 17,064,501 17,064,501
Other 4,303,220 - - 4,303,220
Unassigned 9,241,862 - (226,836) 9,015,026
Total Fund Balances 13,855,048 417,981 42,071,345 56,344,374
Total Liabilities, Inflows of Resources,
and Fund Balances 50,018,612$ 11,297,974$ 60,226,927$ 121,543,513$
December 31, 2018
CITY OF EVANSTON, ILLINOIS
Balance Sheet
Governmental Funds
See accompanying notes to financial statements.
- 9 -
Governmental Activities in the Statement of Net Position
Fund Balances of Governmental Funds 56,344,374$
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds
Total governmental capital assets 186,607,522$
Less internal service fund portion 7,220,141 179,387,381
Total OPEB liability payable is not due and payable in the current period and,
therefore, is not reported in the governmental funds (17,123,787)
Interest payable is not due and payable in the current period and, therefore,
not reported in the governmental funds (416,505)
Long-term liabilities, including bonds payable, are not due and payable in
the current period and, therefore, are not reported in the governmental funds
General obligation bonds payable (144,701,820)
Bonds premium liability (6,353,933)
First Bank loan (648,812)
Other loans (3,131)
Compensated absences payable (10,030,764)
Net pension liability (asset) is shown as a liability (asset) on the statement
of net position
Illinois Municipal Retirement Fund 8,569,417
Police Pension Fund (118,270,093)
Firefighters' Pension Fund (96,445,512)
Differences between expected and actual experiences, assumption changes, net
differences between projected, and actual earnings are recognized as deferred
outflows and inflows of resources on the statement of net position
Illinois Municipal Retirement Fund (11,947,312)
Police Pension Fund 11,056,452
Firefighters' Pension Fund 10,015,373
OPEB (1,083,967)
Deferred inflows for long-term loans are not a available and, therefore, not
revenue in fund financial statements 8,793,101
The net position of the internal service fund is included in the governmental
activities on the statement of net position (331,192)
Net Position of Governmental Funds (133,190,730)$
December 31, 2018
CITY OF EVANSTON, ILLINOIS
Reconciliation of Fund Balances of Governmental Funds to the
See accompanying notes to financial statements.
- 10 -
General Nonmajor Total
Obligation Governmental Governmental
General Debt Service Funds Funds
Revenues
Taxes 60,830,670$ 10,520,453$ 9,930,041$ 81,281,164$
Licenses and permits 11,663,823 - - 11,663,823
Special assessments - - 198,966 198,966
Intergovernmental 19,045,016 - 3,958,688 23,003,704
Charges for services 9,993,411 - 59,572 10,052,983
Fines and forfeits 3,765,058 - - 3,765,058
Investment income 94,929 159,324 524,023 778,276
Miscellaneous 2,536,638 86,624 2,597,169 5,220,431
Total Revenues 107,929,545 10,766,401 17,268,459 135,964,405
Expenditures
Current
General management and support 16,101,597 58,325 2,169,623 18,329,545
Public safety 64,252,245 - 1,280,728 65,532,973
Public works 12,616,790 - 9,452,254 22,069,044
Health and human resource development 3,141,991 - - 3,141,991
Recreational and cultural opportunities 12,789,472 - - 12,789,472
Housing and economic development 3,260,808 - 5,744,927 9,005,735
Capital outlay - - 11,399,581 11,399,581
Debt service
Principal - 17,257,414 299,800 17,557,214
Interest - 4,513,330 22,555 4,535,885
Fiscal charges - 4,900 532,061 536,961
Total Expenditures 112,162,903 21,833,969 30,901,529 164,898,401
Excess (Deficiency) of Revenues
Over Expenditures (4,233,358) (11,067,568) (13,633,070) (28,933,996)
Other Financing Sources (Uses)
Issuance of bonds - 6,385,676 37,907,443 44,293,119
Issuance of loans - - 3,131 3,131
Premium (discount) on bonds issued - 720,765 1,875,191 2,595,956
Transfers in 8,133,142 4,137,327 8,427,114 20,697,583
Transfers (out)(3,392,418) - (15,781,603) (19,174,021)
Total Other Financing Sources (Uses)4,740,724 11,243,768 32,431,276 48,415,768
Net Change in Fund Balances 507,366 176,200 18,798,206 19,481,772
Fund Balances, January 1 13,347,682 241,781 23,273,139 36,862,602
Fund Balances, December 31 13,855,048$ 417,981$ 42,071,345$ 56,344,374$
CITY OF EVANSTON, ILLINOIS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended December 31, 2018
See accompanying notes to financial statements.
- 11 -
Net Change in Fund Balances -
Total Governmental Funds 19,481,772$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures; however, they are capitalized and
and depreciated in the statement of activities 23,111,658
Some expenses in the statement of net position (e.g., depreciation) do not require the use of
current financial resources and, therefore, are not reported as expenditures in governmental funds
Depreciation (9,443,693)
The loss on disposal of capital assets increases the expense on the statement of activities (112,103)
The issuance of long-term debt is reported as an other financing sources in governmental funds,
but as an increase of principal outstanding in the statement of activities (46,892,206)
The repayment of long-term debt is reported as an expenditure when due in governmental
funds but as a reduction of principal outstanding in the statement of activities 17,557,214
The amortization of premium on long-term debt is reported as a reduction of interest expense
on the statement of activities 427,270
Changes in total other postemployment benefits obligations are reported only in the statement
of activities 363,899
The change in compensated absences payable is shown as an expense on the statement of activities 356,893
The change in the accrual of interest is reported as interest expense on the statement of activities (37,853)
The change in the net pension liability (asset) is reported only in the statement of activities
Illinois Municipal Retirement Fund 21,183,577
Police Pension Fund (7,276,021)
Firefighters' Pension Fund (2,101,652)
The change in deferred inflows and outflows of resources is reported only in the statement of
activities
Illinois Municipal Retirement Fund (23,160,408)
Police Pension Fund (3,862,361)
Firefighters' Pension Fund (890,610)
OPEB (1,083,967)
The changed in deferred inflows for long-term loans is not expense on the statement of activities 41,528
Internal service funds are reported separately in the fund financial statements (5,069,026)
Change in Net Position of Governmental Activities (17,406,089)$
CITY OF EVANSTON, ILLINOIS
Reconciliation of Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities
For the Fiscal Year Ended December 31, 2018
See accompanying notes to financial statements.
- 12 -
CITY OF EVANSTON, ILLINOIS
Statement of Net Position
Proprietary Funds
December 31, 2018
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Current Assets
Cash and cash equivalents 6,915,495$ 1,752,528$ 664$ 3,830,487$ 12,499,174$ 880,027$
Receivables
Property taxes - - 820,000 - 820,000 -
Accounts - water and sewerage charges
Accounts - billed 571,319 158,716 123,663 - 853,698 -
Accounts - unbilled 1,197,534 1,842,539 578,837 - 3,618,910 -
Accrued interest - - - - -
Other 189,108 - 73,117 - 262,225 -
Inventories 638,478 136,946 - - 775,424 1,247,629
Prepaid items - - - 126,142 126,142 543,658
Due from other funds - 1,581,126 - - 1,581,126 134,031
Due from other governments - - - - - -
Advances to other funds - - - 357,600 357,600 -
Total Current Assets 9,511,934 5,471,855 1,596,281 4,314,229 20,894,299 2,805,345
Noncurrent Assets
Capital assets
Capital assets not being depreciated 2,364,615 - - 4,717,679 7,082,294 -
Capital assets being depreciated 120,265,770 258,252,889 267,825 91,627,171 470,413,655 24,870,048
Accumulated depreciation (30,115,855) (64,868,548) - (36,426,527) (131,410,930) (17,649,907)
Total Capital Assets 92,514,530 193,384,341 267,825 59,918,323 346,085,019 7,220,141
Other assets
Net pension asset - IMRF 1,263,136 298,602 221,582 395,767 2,179,087 -
Notes receivable - - - 209,000 209,000 -
Total Other Assets 1,263,136 298,602 221,582 604,767 2,388,087 -
Total Noncurrent Assets 93,777,666 193,682,943 489,407 60,523,090 348,473,106 7,220,141
Total Assets 103,289,600 199,154,798 2,085,688 64,837,319 369,367,405 10,025,486
Deferred Outflows of Resources
Pension items - IMRF 415,195 98,202 72,826 130,228 716,451 -
Total Deferred Outflows of Resources 415,195 98,202 72,826 130,228 716,451 -
Total Assets and Deferred
Outflows of Resources 103,704,795 199,253,000 2,158,514 64,967,547 370,083,856 10,025,486
(This statement is continued on the following page.)
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CITY OF EVANSTON, ILLINOIS
Statement of Net Position
Proprietary Funds
December 31, 2018
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Current Liabilities
Vouchers payable 2,276,920$ 477,175$ 312,630$ 440,487$ 3,507,212$ 492,925$
Retainage payable 30,166 31,467 - - 61,633 -
Deposits payable - 153 607 - 760 -
Interest payable - restricted 78,674 177,545 - - 256,219 -
Interest payable - - 61 92 153 -
Notes payable - IEPA 216,321 5,172,512 - - 5,388,833 -
Current portion of GO bonds payable 1,028,627 76,382 22,019 33,256 1,160,284 -
Current portion of total OPEB liability 14,805 6,254 8,704 5,664 35,427 4,253
Claims payable - - - - - 2,604,500
Due to other funds 156,630 268 1,220,080 541,072 1,918,050 4,973,796
Due to component unit - - - - - -
Compensated absences payable 121,805 24,935 9,357 27,581 183,678 25,673
Total Current Liabilities 3,923,948 5,966,691 1,573,458 1,048,152 12,512,249 8,101,147
Noncurrent Liabilities
Notes payable - IEPA 3,665,810 25,867,179 - - 29,532,989 -
General obligation bonds payable 23,944,458 1,962,312 - 115,621 26,022,391 -
Total OPEB liability 325,580 137,519 191,417 124,566 779,082 93,547
Claims payable - - - - - 2,053,100
Compensated absences payable 487,221 99,740 37,430 110,322 734,713 102,693
Total Long-Term Liabilities 28,423,069 28,066,750 228,847 350,509 57,069,175 2,249,340
Total Liabilities 32,347,017 34,033,441 1,802,305 1,398,661 69,581,424 10,350,487
Deferred Inflows of Resources
OPEB items 21,547 9,101 12,668 8,244 51,560 6,191
Pension items - IMRF 2,176,175 514,443 381,749 681,841 3,754,208 -
Deferred property taxes - - 820,000 - 820,000 -
Total Deferred Inflows of Resources 2,197,722 523,544 1,214,417 690,085 4,625,768 6,191
Total Liabilities and Deferred
Inflows of Resources 34,544,739 34,556,985 3,016,722 2,088,746 74,207,192 10,356,678
Net Position (Deficit)
Net investment in capital assets 63,659,314 160,305,956 245,806 59,769,446 283,980,522 7,220,141
Unrestricted 5,500,742 4,390,059 (1,104,014) 3,109,355 11,896,142 (7,551,333)
Total Net Position (Deficit)69,160,056$ 164,696,015$ (858,208)$ 62,878,801$ 295,876,664$ (331,192)$
See accompanying notes to financial statements.
- 14 -
CITY OF EVANSTON, ILLINOIS
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended December 31, 2018
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Operating Revenues
Charges for services 14,959,685$ 11,897,044$ 4,070,350$ 6,377,826$ 37,304,905$ 22,654,603$
Miscellaneous 682,500 22,200 12,727 243,217 960,644 18,765
Total Operating Revenues 15,642,185 11,919,244 4,083,077 6,621,043 38,265,549 22,673,368
Operating Expenses Excluding Depreciation
Administration 1,245,955 1,698,878 1,125,177 2,327,402 6,397,412 -
Operations 8,294,406 455,382 3,725,112 4,271,050 16,745,950 25,934,622
Total Operating Expenses Excluding Depreciation 9,540,361 2,154,260 4,850,289 6,598,452 23,143,362 25,934,622
Operating Income (Loss) Before Depreciation 6,101,824 9,764,984 (767,212) 22,591 15,122,187 (3,261,254)
Depreciation 2,581,863 3,615,269 - 2,644,560 8,841,692 1,695,533
Operating Income (Loss)3,519,961 6,149,715 (767,212) (2,621,969) 6,280,495 (4,956,787)
Non-Operating Revenue (Expenses)
Investment income 68,016 56,455 - 109,598 234,069 5,060
Property taxes - - 410,000 - 410,000 -
Interest expense (841,267) (965,451) (1,279) (78,231) (1,886,228) -
Gain (loss) on disposal of capital assets - - - - - (74,225)
Total Non-Operating Revenues (Expenses)(773,251) (908,996) 408,721 31,367 (1,242,159) (69,165)
Income (Loss) Before Transfers 2,746,710 5,240,719 (358,491) (2,590,602) 5,038,336 (5,025,952)
Transfers
Transfers in 187,430 187,430 705,967 3,037,704 4,118,531 -
Transfers (out)(3,549,555) (799,464) - (1,250,000) (5,599,019) (43,074)
Total Transfers (3,362,125) (612,034) 705,967 1,787,704 (1,480,488) (43,074)
Net Income (Loss)(615,415) 4,628,685 347,476 (802,898) 3,557,848 (5,069,026)
Net Position (Deficit), January 1 69,863,941 160,137,761 (1,061,966) 63,755,989 292,695,725 4,746,591
Change in accounting principle (88,470) (70,431) (143,718) (74,290) (376,909) (8,757)
Net Position (Deficit), January 1, (Restated)69,775,471 160,067,330 (1,205,684) 63,681,699 292,318,816 4,737,834
Net Position (Deficit), December 31 69,160,056$ 164,696,015$ (858,208)$ 62,878,801$ 295,876,664$ (331,192)$
See accompanying notes to financial statements.
- 15 -
CITY OF EVANSTON, ILLINOIS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended December 31, 2018
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Cash Flows from Operating Activities
Receipts from customers and users 16,574,211$ 11,977,567$ 4,034,651$ 6,639,558$ 39,225,987$ 2,884,140$
Receipts from/(payments for)
interfund services provided (1,459,874) (1,128,202) (529,341) 401,801 (2,715,616) 23,184,793
Receipts from other agencies - - - - - 527,992
Payments to suppliers (6,642,813) (478,957) (3,295,870) (4,212,065) (14,629,705) (2,779,280)
Payments to employees (504,407) (1,182,391) (1,035,122) (2,067,903) (4,789,823) (6,899,931)
Payments for insurance premiums - - - - - (16,303,322)
Net Cash Provided from Operating Activities 7,967,117 9,188,017 (825,682) 761,391 17,090,843 614,392
Cash Flows from Noncapital Financing Activities
Property taxes - - 410,000 - 410,000 -
Transfers in (out)(3,362,125) (612,034) 705,967 1,787,704 (1,480,488) (43,074)
Net Cash from Noncapital Financing Activities (3,362,125) (612,034) 1,115,967 1,787,704 (1,070,488) (43,074)
Cash Flows from Capital and Related Financing Activities
Sale of capital assets - - - - - (74,225)
Acquisition and construction of capital assets (6,974,739) (3,119,722) (267,825) (437,454) (10,799,740) (1,198,749)
Proceeds from general obligation bonds 4,837,719 1,357,320 - - 6,195,039 -
Proceeds from loans 541,305 364,076 - - 905,381 -
Principal paid on general obligation bonds (992,649) (414,456) (20,467) (2,964,363) (4,391,935) -
Interest paid on general obligation bonds (578,750) (858,065) (1,329) (106,265) (1,544,409) -
Principal paid on IEPA loans (187,466) (6,124,201) - - (6,311,667) -
Net Cash from Capital and Related Financing Activities (3,354,580) (8,795,048) (289,621) (3,508,082) (15,947,331) (1,272,974)
Cash Flows from Investing Activities
Interest income 68,532 56,968 - 118,048 243,548 5,060
Net Cash from Investing Activities 68,532 56,968 - 118,048 243,548 5,060
Net Increase (Decrease) in Cash and Cash Equivalents 1,318,944 (162,097) 664 (840,939) 316,572 (696,596)
Cash and Cash Equivalents
Beginning 5,596,551 1,914,625 - 4,671,426 12,182,602 1,576,623
Ending 6,915,495$ 1,752,528$ 664$ 3,830,487$ 12,499,174$ 880,027$
(This statement is continued on the following page.)
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CITY OF EVANSTON, ILLINOIS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended December 31, 2018
Governmental
Activities -
Motor Vehicle Internal Service
Water Sewer Solid Waste Parking System Total Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided from Operating Activities
Operating income (loss)3,519,961$ 6,149,715$ (767,212)$ (2,621,969)$ 6,280,495$ (4,956,787)$
Adjustments to reconcile operating income (loss) to
net cash provided from operating activities
Depreciation 2,581,863 3,615,269 - 2,644,560 8,841,692 1,695,533
Changes in assets and liabilities
Accounts receivable 932,026 58,170 (48,426) 13,515 955,285 23,048
Notes receivable - - - 5,000 5,000 -
Interfund receivable - (456,846) - 51,146 (405,700) (66,593)
Prepaid expenses - - - (126,142) (126,142) 1,139,446
Inventories (57,107) 49,368 - - (7,739) (284,197)
Compensated absences (44,715) (2,266) 22,222 3,436 (21,323) (6,289)
OPEB items 14,313 6,046 8,415 154,056 182,830 4,113
Pension items - IMRF 303,458 75,455 59,418 102,007 540,338 -
Deposits payable - 153 606 - 759 -
Vouchers payable 885,688 (265,156) 106,880 (5,290) 722,122 (1,287,894)
Interfund payable (168,370) (41,891) (207,585) 541,072 123,226 3,983,912
Claims payable - - - - - 370,100
Net Cash Provided from Operating Activities 7,967,117$ 9,188,017$ (825,682)$ 761,391$ 17,090,843$ 614,392$
See accompanying notes to financial statements.
- 17 -
CITY OF EVANSTON, ILLINOIS
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2018
Pension
Trust
Assets
Investments at fair value
Cash and cash equivalents 4,657,381$
U.S. Treasury obligations 18,263,135
U.S. agency obligations 12,427,478
Corporate bonds 28,603,683
Common stock 30,760,287
Equity mutual funds 87,507,334
Index funds 8,842,920
Real estate 1,005,346
Receivables
Accrued interest 397,077
Due from other governments 71,534
Other -
Total Assets 192,536,175
Liabilities
Accounts payable -
Total Liabilities -
Net Position Restricted
For Pensions 192,536,175$
See accompanying notes to financial statements.
- 18 -
CITY OF EVANSTON, ILLINOIS
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended December 31, 2018
Additions
Contributions - employer 18,807,651$
Contributions - plan members 2,668,815
Total Contributions 21,476,466
Investment income
Net depreciation in fair value
of investments (13,208,221)
Interest on investments 5,202,210
Less investment expenses (383,869)
Total Investment Income (8,389,880)
Total Additions 13,086,586
Deductions
Administration 164,640
Benefit payments 21,088,515
Total Deductions 21,253,155
Net Decrease (8,166,569)
Net Position Restricted
For Pensions
January 1 200,702,744
December 31 192,536,175$
See accompanying notes to financial statements.
- 19 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
Page(s)
Note 1 Summary of Significant Accounting Policies
A. Reporting Entity 23-24
B. Government-Wide and Fund Financial Statements 24
C. Fund Accounting 25
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 26-28
E. Cash and Cash Equivalents 28
F. Investments 28
G. Inventories and Prepaid Items 28
H. Capital Assets 29
I. Compensated Absences 29
J. Long-Term Obligations 29
K. Self-Insurance 30
L. Deferred Inflows of Resources 30
M. Property Taxes 30
N. Fund Equity 31
O. Interfund Transactions 31
P. Use of Estimates 32
Q. Conduit Debt 32
Note 2 Stewardship, Compliance, and Accountability
A.Deficit Fund Equity 33
Note 3 Deposits With Financial Institutions and Investments
A. Types of Accounts and Securities 34
B. Pooling Cash and Investments 34
C. Types of Investments 35
D. Deposits 35
Note 4 Receivables
A. Summary of Receivables 36
B. Notes Receivable - Special Revenue Funds 36
Note 5 Capital Assets
A. Capital Asset Activity 37-39
B. Construction Commitments 39
- 20 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
Page(s)
(Continued from the previous page)
Note 6 Interfunds
A. Interfund Accounts 40
B. Interfund Advances 41
C. Interfund Transfers 42-45
Note 8 Long-Term Debt
A. Changes in Long-Term Debt 46-47
B. General Obligation Bonds Payable 48
C. Notes Payable - IEPA Loans 49
D. Loan with First Bank and Trust, Evanston 49
E. Postemployment Benefits other than Pensions (Defined Benefit Plan)49-51
Note 9 Fund Equity
A. Restricted Net Position - Fiduciary Funds 52
B. Assigned Fund Balances 52
Note 10 Individual Fund Activities
A. General Obligation Debt Service Fund 53
B. Water Fund 53
C. Special Service District No. 4 53
Note 11 Risk Management - Claims and Judgements 54
Note 12 Contingencies 55
Note 13 Joint Ventures
A. Solid Waste Agency of Northern Cook County 55-56
Note 14 Employee Retirement Systems
A. Plan Descriptions 57-72
Note 15 Pension Trust Funds
A. Schedule of Net Position 73
B. Changes in Plan Net Position 74
- 21 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
Page(s)
(Continued from the previous page)
Note 16 Evanston Library Component Unit
A. Types of Accounts and Securities 75
B. Reconciliation of Cash and Investments 76
C. Summary Receivables 76
D. Capital Assets Activity 76
E. Long-Term Debt 77
Note 17 Change in Accounting Principle 78
- 22 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The more significant of the City's and the Library's accounting policies are described below.
A.Reporting Entity
Blended Component Unit:
The financial statements of the City of Evanston,Illinois (the City)and Evanston Public Library (the Library or EPL)
have been prepared in conformity with accounting principles generally accepted in the United States of America as
applied to governmental units (hereinafter referred to as generally accepted accounting principles (GAAP)).The
Governmental Accounting Standards Board (GASB)is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles.
This report includes all of the funds of the City and the Library.The reporting entity for the City consists of the primary
government and its component units.Component units are legally separate organizations for which the primary
government is financially accountable or other organizations for which the nature and significance of their relationship
with the primary government are such that their exclusion would cause the reporting entity's financial statements to be
misleading.The primary government is financially accountable if (1)it appoints a voting majority of the organization's
governing body and it is able to impose its will on that organization,(2)it appoints a voting majority of the organization's
governing body and there is a potential for the organization to provide specific financial benefits to,or impose specific
financial burdens on,the primary government,(3)the organization is fiscally dependent on and there is a potential for the
organization to provide specific financial benefits to,or impose specific financial burdens on,the primary government.
Certain legally separate,tax exempt organizations should also be reported as a component unit if all of the following
criteria are met:(1)the economic resources received or held by the separate organization are entirely or almost entirely
for the direct benefit of the primary government,its component units,or its constituents;(2)the primary government or
its component units,is entitled to,or has the ability to access,a majority of the economic resources received or held by
the separate organization;and (3)the economic resources received or held by an individual organization that the primary
government,or its component units,is entitled to,or has the ability to otherwise access,are significant to the primary
government.
Component units are reported using one of two methods,discrete presentation or blending.Generally,component units
should be discretely presented in a separate column in the financial statements.A component unit should be reported as
part of the primary government using the blending method if it meets any one of the following criteria:(1)the primary
government and the component unit have substantively the same governing body and a financial benefit or burden
relationship exists;(2)the primary government and the component unit have substantively the same governing body and
management of the primary government has operational responsibility for the component unit;(3)the component unit
serves or benefits,exclusively or almost exclusively,the primary government rather than its citizens;or (4)the total debt
of the component unit will be paid entirely or almost entirely from resources of the primary government.
The Town of the City of Evanston,Illinois (the Township)has been previously presented as a separate legal entity which
administers General Assistance,a public welfare program assigned by Illinois law to townships.Eligible clients received
General Assistance for food,shelter,and medical needs.Through the town fund levy,the Township also supported a
number of community action programs,which provided direct services to welfare recipients.The Township was governed
by a Township Board of Trustees and provided services within the same geographic boundaries of the City.The
Township Board of Trustees were the same individuals as the City Council.The Township board levied taxes and was
responsible for adopting the Township budget and approving payment of bills.On April 30,2014,the Township was
discontinued and dissolved following the March 18,2014 general election vote taken by the registered voters of the
Township.Pursuant to 60 ILCS 1/27-15 and 1/27-20,effective 12:00 am May 1,2014,the City assumed all rights,
powers,assets,property,obligations,and duties of the Township,including the responsibility of providing the services
that were previously provided by the Township.Beginning May 1,2014,the functions of the Township are reported
along with the City.
- 23 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A.Reporting Entity - Continued
Discrete Component Unit:
Joint Ventures:
B.Government-Wide and Fund Financial Statements
Separate financial statements are provided for governmental funds,proprietary funds,and fiduciary funds,even though
the latter are excluded from the government-wide financial statements.Major individual governmental funds and major
individual enterprise funds are reported as separate columns in the fund financial statements.Nonmajor funds are
reported in the supplementary information.
The City participates in one joint venture,which is reported as non-equity governmental joint venture and is described in
Footnote 13. The joint venture is Solid Waste Agency of Northern Cook County (SWANCC).
The government-wide financial statements (i.e.,the statement of net position and the statement of activities)report
information on all of the nonfiduciary activities of the City and the Library.The effect of interfund activity has been
removed from these statements excluding interfund services provided.Governmental activities,which normally are
supported by taxes and intergovernmental revenues,are reported separately from business-type activities,which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset
by program revenues.Direct expenses are those that are clearly identifiable with a specific function or segment.Program
revenues include (1)charges to customers or applicants who purchase,use,or directly benefit from goods,services,or
privileges provided by a given function or segment and (2)grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment.Taxes and other items not properly included
among program revenues are reported instead as general revenues.
The EPL serves the community through three branches.The EPL partners with Northwestern University and other
agencies to implement digitally based science,technology,and math learning opportunities for teens.The EPL is
continually focused on expanding summer reading programs to serve the patrons of all ages.The Library has also
expanded community outreach by promoting library services at various local places and events.
The Library Director submits a proposed budget to the EPL Board of Trustees for the upcoming calendar year.This
budget is included in the budget documents submitted by the City Manager to the City Council.The Library budget is
legally enacted through passage of a resolution by the City Council.
The EPL promotes the development of independent,self-confident,and literate citizens through the provision of open
access to cultural,intellectual,and informational resources for all ages.Beginning FY 2013,the Library financials are
shown separately as a discrete component unit of the City.However,the Library does not issue its own independent set of
financial statements.The Library Debt Service Fund was created as a part of FY2014 budget.The Library is governed by
the Library Board of Trustees. The board members are appointed by the Mayor of the City.
- 24 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C.Fund Accounting
The City and the Library use funds to report on its financial position and the results of its operations.A fund is a separate
accounting entity with a self-balancing set of accounts.Fund accounting is designed to demonstrate legal compliance and
to aid financial management by segregating transactions related to certain government functions or activities.
Fiduciary funds are used to account for assets held on behalf of outside parties,including other governments,or on behalf
of other funds within the City.When these assets are held under the terms of a formal trust agreement,a private purpose
trust fund is used.Agency funds generally are used to account for assets that the City holds on behalf of others as their
agent.The pension trust fund accounts for the activities of the Police and Firefighters'Pension Funds,which accumulate
resources for pension benefit payments to retired police and fire personnel.
Funds are classified into three categories:governmental,proprietary,and fiduciary.Each category,in turn,is divided
into separate "fund types."
Proprietary funds are used to account for activities similar to those found in the private sector,where the determination of
net income is necessary or useful for sound financial administration.Goods or services from such activities can be
provided either to outside parties (enterprise funds)or to other departments or agencies primarily within the City (internal
service funds).Internal service funds are included with the governmental funds on the government-wide financial
statements.
Governmental funds are used to account for all or most of the City's general activities,including the collection and
disbursement of restricted or committed monies (special revenue funds),the funds committed,restricted,or assigned for
the acquisition or construction of general capital assets (capital projects funds),and the funds restricted,committed,or
assigned for the servicing of general long-term debt (debt service funds).The General Fund is used to account for all
activities of the City not accounted for in some other fund.
- 25 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation
1.) Taxes 5.) Recycling program fees and sales
Property *
Sales (home rule)6.) Fines
Utility Traffic fines
Personal property
Hotel tax 7.) Intergovernmental
Athletic contest tax Motor fuel tax allotments
Cigarette tax Local motor fuel tax allotments
Liquor tax Grants
Parking tax Supplemental Security income reimbursements
Income taxes
2.) Licenses Sales taxes
Use tax
3.) Franchise fees
8.) Investment income
4.) Charges for services
* Property taxes are defined as available if collected within at most 60 days after fiscal year end.
The City reports the following major governmental funds:
The General Obligation Debt Fund is a debt service fund which accumulate monies for the principal and interest
payments on general obligation debt.
The General Fund is the City's primary operating fund.It accounts for all financial resources of the general
government, except those accounted for in another fund.
The City's and the Library's governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting.Revenues are recognized as soon as they are both
measurable and available.Revenues are considered to be available when they are collectible within the current period or
soon enough thereafter to pay liabilities of the current period.A six-month availability period is used for revenue
recognition for all other governmental fund revenues.Expenditures generally are recorded when a liability is incurred,as
under accrual accounting.However,debt service expenditures,as well as expenditures related to compensated absences,
are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be
made early in the following year.
The following revenues associated with the current fiscal period are all considered to be susceptible to accrual and so
have been recognized as revenues of the current fiscal period.
All other revenue items are considered to be measurable and available only when cash is received by the City and the
Library.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting,as are the proprietary fund statements.Revenues are recorded when earned and expenses are
recorded when a liability is incurred,regardless of the timing of related cash flows.Property taxes are recognized as
revenues in the year for which they are levied.Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period.
- 26 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
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.
Proprietary funds distinguish operating revenues and expenses from non-operating items.Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations.The principal operating revenues of the enterprise funds and of the City’s internal
service funds are charges to customers for sales and services.Operating expenses for enterprise funds and internal service
funds include the cost of sales and services,administrative expenses,and depreciation on capital assets.All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
The Water Fund accounts for the provision of water services to the residents of the City and the sale of water to the
Village of Skokie,Illinois and the Northwest Water Commission.All activities necessary to provide such services
are accounted for in this fund,including,but not limited to,administration,operation,maintenance,financing and
related debt service, and billing and collection.
Internal Service Funds account for the fleet management and insurance services provided to other departments or
agencies of the government, or to other governments, on a cost reimbursement basis.
The Sewer Fund accounts for the provision of sewer repair and improvement services to the residents of the City.
All activities necessary to provide such services are accounted for in this fund,including administration,operations,
financing, and billing and collection.
The Solid Waste Fund accounts for the recycling,refuse,and yard waste removal services related fees and
expenses. Refuse and yard waste are contracted out, while recycling is handled by the City staff.
The Motor Vehicle Parking System accounts for the provision of the public and residential parking facility on
Church Street,Maple Avenue,and Sherman Avenue,as well as all the City's parking lots and meters.All activities
are accounted for including administration, operations, financing, and revenue collection.
Pension Trust Funds account for the activities of the Police and Firefighters'Pension Funds,which accumulate
resources for pension benefit payments to qualified public safety employees.
As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are charges between the City's enterprise funds and various other functions of the
government.Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include (1)charges to customers for goods,services,or privileges provided,(2)
operating grants and contributions,and (3)capital grants and contributions,including assessments.Internally dedicated
resources are reported as general revenue rather than as program revenue. Likewise, general revenues include all taxes.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued
E.Cash and Equivalents
F.Investments
G.Inventories and Prepaid Items
Investments with a maturity of less than one year when purchased,non-negotiable certificates of deposit,and other
nonparticipating investments are stated at cost or amortized cost.Investments with a maturity greater than one year when
purchased and all investments of the pension trust funds are stated at fair value.Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.
Inventories in the Water,Sewer,and Fleet Service Funds are valued at cost.Inventory amounts are recorded on the basis
of a physical count.
The City and Library report unearned revenue and unavailable/deferred revenue on its financial statements.Unavailable
revenues arise when a potential revenue does not meet both the measurable and available criteria for recognition in the
current period,under the modified accrual basis of accounting.Deferred revenues arise when property tax levies are
intended to finance the next fiscal year.Unearned revenue arises when a revenue is measurable but not earned under the
accrual basis of accounting.Unearned revenues also arise when resources are received by the City and Library before it
has a legal claim to them or prior to the provision of services,as when grant monies are received prior to the issuance of
qualifying expenditures.In subsequent periods,when both revenue recognition criteria are met,or when the City and
Library have a legal claim to the resources,the liability and deferred inflows of resource for unearned and
unavailable/deferred revenue are removed from the financial statements and revenue is recognized.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements.In governmental funds,prepaid items are recorded based on
consumption method.
When both restricted and unrestricted resources are available for use,it is the City and Library’s policy to use restricted
resources first, then unrestricted resources as they are needed.
Cash and equivalents represent cash on hand,cash deposited in interest-bearing and non-interest-bearing checking
accounts,and investments in money markets,certificates of deposit,and treasury obligations with maturities of three
months or less at the date of acquisition, and cash deposited with Illinois Funds.
- 28 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H.Capital Assets
Description Years Description Years
Land improvements 10-100 Buildings and improvements 10-50
Leasehold improvements 10-100 Office equipment and furniture 5-15
Plant 20-100 Machinery and equipment 3-15
Transmission and distribution Infrastructure 30-100
system 5-100 Library collections 7
Sewer system and Intangible assets 5-10
underground lines 75-100
Parking meters 15
I.Compensated Absences
J.Long-Term Obligations
Property,plant,and equipment are depreciated,and intangible assets are amortized using the straight-line method over
the following estimated useful lives:
A capital asset is property,such as equipment,buildings,land,utility infrastructure,roads,bridges with a cost or value
equal to or greater than $20,000 (per asset)at the date of acquisition and an expected useful life of more than one year
(12 months or longer).Acquisition of motor vehicles is an exception to the $20,000 threshold.Also additional cost of less
than $20,000 associated with an asset may be capitalized if the expense is necessary to put the asset in service or its
intended use;and/or if it extends the service life of the asset.Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed.Donated capital assets are recorded at acquisition value at the date of
donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'lives are
not capitalized.Infrastructure acquired prior to the February 28,2003 implementation of GASB Statement No.34 has
been reported.
In the fund financial statements,governmental fund types recognize bond premiums and discounts,as well as bond
issuance costs,during the current period.The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources,while discounts on debt issuances are
reported as other financing uses.Issuance costs,whether or not withheld from the actual debt proceeds received,are
reported as debt service expenditures.
In the government-wide financial statements and proprietary fund types in the fund financial statements,long-term debt,
and other long-term obligations are reported as liabilities in the applicable governmental activities,business-type
activities,or proprietary fund type statement of net position.Bond premiums and discounts,if material,are deferred and
amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
It is the City's and the Library’s policy to permit employees to accumulate earned but unused vacation and sick pay
benefits.All payments due in the event of termination are accrued when incurred in the government-wide and proprietary
fund financial statements.The General Fund has been used in prior years to liquidate the liability for compensated
absences of governmental funds.
- 29 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K.Self-Insurance
L.Deferred Inflows/Outflows of Resources
M.Property Taxes
The property tax calendar for Cook County is as follows:
Description Date
Lien date January 1 of levy year
Levy date December of levy year
First installment due date
(55% of prior bill)March 1/April 1 of year following levy year
Second installment due date
(balance of total bill)September 1/October 1 of year following levy year
In addition to assets,the statement of financial position will sometimes report a separate section for deferred
outflows of resources.This separate financial statement element,deferred outflows of resources,represents a
consumption of net assets that applies to a future period(s)and so will not be recognized as an outflow of
resources (expense/expenditure) until then.
In addition to liabilities,the statement of financial position will sometimes report a separate section for deferred
inflows of resources.This separate financial statement element,deferred inflows of resources,represents an
acquisition of net assets that applies to a future period(s)and so will not be recognized as an inflow of resources
(revenue) until that time.
Property taxes are collected by the Cook County Collector and are remitted periodically to all taxing bodies,including the
City and Library.Distributions are made more often during the two main collection periods.Property taxes are levied on
a calendar year basis by passage of a tax levy ordinance.
The City and the Library are self-insured to certain limits for general liability claims and for workers'compensation
insurance.A liability is recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated.Claims liabilities are based on estimates of the ultimate cost of reported claims including future claims
adjustment expenses. General liability and workers' compensation claims are paid out of the Insurance Fund.
Property taxes are recognized as revenues in the year for which they are levied (i.e.,intended to finance).On this basis,
property tax revenue includes all cash distributions of property tax related to the 2017 tax levy received during the fiscal
period between January 1,2018 and December 31,2018.A 2%allowance for loss is reflected in the City and the Library
financial statements.
The 2018 tax levy collections are intended to finance the 2019 fiscal year and are not considered available for current
operations and are, therefore, shown as unavailable/deferred revenue.
- 30 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
N. Fund Equity
O.Interfund Transactions
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.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly
applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of
expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers.
1.Nonspendable -Includes fund balance amounts that can not be spent either because they are not in spendable
form or because legal or contractual stipulations require them to be maintained intact.
2.Restricted -Consists of fund balances with constraints placed on their use either by (1)external groups such as
creditors,grantors,contributors,or laws or regulations of other governments or (2)law through constitutional provisions
or enabling legislation.
3.Committed -Includes fund balance amounts that are constrained for specific purposes that are internally imposed
by the government through formal action of the highest level of decision-making authority.Fund balance amounts are
committed through a formal action of the City.This formal action must occur prior to the end of the reporting period,but
the amount of commitment,which will be subject to constraints,may be determined in the subsequent period.Any
changes to the constraints imposed require the same formal action of the City that originally created the commitment.
Assignments may not create unassigned deficits in any fund.However,nonspendable,restricted,or committed fund
balance may create an unassigned deficit.Also,restricted,committed,and assigned balances themselves may not be
negative.
4.Assigned -Includes spendable fund balance amounts that are intended to be used for specific purposes that are
not considered restricted or committed.Fund balance may be assigned through the following:(1)Council may take
official action to assign amounts,(2)all remaining positive spendable amounts in governmental funds,other than the
General Fund, that are neither restricted nor committed. Assignments may take place after the end of the reporting period.
The City has established a policy requiring a minimum of 16.6%or two months of operating expenditures to be
maintained as a reserve. This is reported as unassigned fund balance.
In the government-wide and proprietary financial statements,restricted net position is legally restricted by outside parties
for a specific purpose.Net position has not been restricted by enabling legislation adopted by the City.Net investment in
capital assets represents the book value of capital assets less any long-term debt outstanding issued to construct the
capital assets.
The City and the Library consider restricted amounts to be spent first when both restricted and unrestricted fund balance
is available unless there are legal documents/contracts that prohibit doing this,such as in grant agreements requiring
dollar for dollar spending.Additionally,the City and the Library would first use committed,then assigned,and lastly
unassigned amounts of unrestricted fund balance when expenditures are made.
Governmental fund equity is classified as fund balance.In February 2009,GASB issued Statement No.54,Fund
Balance Reporting and Governmental Fund Type Definitions.This statement establishes fund balance classifications
based primarily on the extent to which the government is bound to honor constraints on the use of the resources reported
in each governmental fund as well as establishes additional notes disclosures regarding fund balance classification
policies and procedures.The City Council may,by an ordinance,establish,modify,or remove a fund balance
commitment.In accordance with GASB Statement No.54,the City and the Library classifies governmental fund balance
as follows:
- 31 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P. Use of Estimates
Q. Conduit Debt
The City approved the issuance of $5,000,000 Series 2010 Revenue Bonds during the fiscal year 2010-2011 to provide
financial assistance to Chiravalle Montessori School, deemed to be in public interest. The use of proceeds includes the
property purchase from the City, improvement to the existing building, refinancing existing debt, and payment of
miscellaneous costs. The bonds are secured by the property or mortgages financed and are payable from the monies,
securities, and other revenues pledged under the indenture by the school. The City is not obligated in any manner for the
repayment of bonds. Accordingly, the bonds outstanding are not reported as a liability in these financial statements. As of
December 31, 2018, outstanding bond balance was $4,060,000.
In preparing financial statements, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
The City approved the issuance of $13,590,000 Series 2011 Revenue Bonds during the fiscal period ended December 31,
2011 to provide financial assistance to Roycemore School, deemed to be in public interest. The use of proceeds includes
the property purchase and renovation of 1201 Davis, the new location of the school, and payment of miscellaneous costs.
The bonds are secured by the property or mortgages financed and are payable from the moneys, securities, and other
revenues pledged under the indenture by the school. The City is not obligated in any manner for the repayment of bonds.
Accordingly, the bonds outstanding are not reported as a liability in these financial statements. As of December 31, 2018,
outstanding bond balance was $12,235,000.
- 32 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.Deficit Fund Equity
The Insurance Fund,an internal service fund,had a net deficit of $8,793,847 as of December 31,2018.The City
plans to use current resources to pay for future liabilities.
The Solid Waste Fund had a net deficit of $858,208 as of December 31,2018.The City plans to use current resources
to pay for future liabilities.
The Special Service District No.4 had a net deficit of $226,836 as of December 31,2018.The City plans to use
current resources to pay for future liabilities.
- 33 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS
A.Types of Accounts and Securities
B.Pooling of Cash and Investments
The City and pension funds categorize the fair value measurements within the fair value hierarchy established by generally
accepted accounting principles.The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets;Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs.
Illinois Statutes and the City's investment policies authorize the City to invest in obligations of the U.S.Treasury,in
Government Sponsored Enterprises (GSE)such as Federal Home Loan Mortgage Corporation (FHLMC),Federal Home Loan
Bank (FHLB),and Fannie Mae (FNMA);bankers acceptances as well as commercial paper rated only in the highest tier;
repurchase agreements of the highest grade;collateralized certificates of deposit issued by FDIC insured financial institutions,
money market mutual funds with portfolios limited to securities guaranteed by the United States Government,the Illinois
Metropolitan Investment Fund (IMET), and Illinois Funds.
It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the following
order:safety of principal,liquidity,and rate of return.The City also seeks to maintain diversification of investments to avoid
overconcentration of any one specific issuer or business sector.To mitigate interest rate risk,the City tries to structure the
investment portfolio to meet daily cash flow needs so as to avoid needing to sell securities on the open market.The City seeks
to attain market rates of return consistent with constraints imposed by safety and cash flow needs.The City invests to conform
to all state and local statutes governing the investment of public funds. More detail is available in the City's investment policy.
The Firefighters'and Police Pension Funds are set up for the exclusive purpose of providing retirement and other benefits to
plan participants and beneficiaries.All investments are governed and authorized by the respective Fire and Police Pension
Boards.The investment objectives and parameters mirror those listed above for the City.However,unlike the City's public
funds,the Firefighters'and Police Pension Funds may invest in various equity accounts up to a limit of 65%of the aggregate
value of each respective fund's assets.The pension funds invest to conform to all state and local statutes governing pension
funds. Additional detail is available in each pension fund's investment policies.
Except for cash and investments in certain restricted and special accounts,the City pools the cash of various funds to
maximize interest earnings. Interest income is allocated to the various funds based upon their respective participation.
Illinois Funds,created by the Illinois State Legislature under the control of the State Comptroller,operates as qualified external
investment pools in accordance with the criteria established in GASB Statement No.79,Certain External Investment Pools
and Pool Participants ,and thus,reports all investments at amortized cost rather than market value.The investment in The
Illinois Funds by participants is also reported at amortized cost.Illinois Funds does not have any limitations or restrictions on
participant withdrawals.The Illinois Funds Treasurer's Office issues a separate financial report for the Illinois Funds which
may be obtained by contacting the Administrative Office at Illinois Business Center,400 West Monroe Street,Suite 401,
Springfield, Illinois 62704.
IMET is a not-for-profit investment trust formed pursuant to the Illinois Municipal code and managed by a Board of Trustees
elected from the participating members.IMET is not registered with the SEC as an investment company.Investments in IMET
are valued at IMET's share price, the price for which the investment could be sold.
- 34 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS – Continued
C.Types of Investments
D.Deposits
Deposits consist of deposits in interest-bearing and non-interest-bearing checking accounts.At December 31,2018,the
carrying amount of the City's deposits,including cash on hand of $10,793 was $34,562,078.The financial institutions'
balances totaled $31,758,614.
Interest Rate Risk.The City's investment policy does not limit investment maturities as a means of managing its exposure to
fair value losses arising from increasing interest rates.The objective is to maintain a core portfolio with maturities primarily in
the three month to three years range.
Credit Risk.State law limits investments in commercial paper,corporate bonds,and mutual bonds funds to the top two
ratings issued by nationally recognized statistical rating organizations.The City's investment policy does not impose further
limits on investment choices.The Police and Firefighters'Pension Funds have investments in corporate bonds with S&P
ratings ranging from BBB-to AAA.Illinois Funds and money markets were rated AAA by Standard &Poor's.IMET
exclusively invests in AAA Standard &Poor's securities,such as treasury and agency obligations.IMET's Convenience Fund
collateralizes all of its deposits 110%.The investments in the securities of the U.S.government agencies were all rated AAA
or Aaa by the Standard &Poor’s and by Moody’s Investor’s Services.The following investments of the City in Illinois Funds,
PMA, and IMET are valued at the funds' share price, the price for which the investments could be sold.
Custodial Credit Risk.For an investment,custodial credit risk is the risk that,in the event of the failure of the counterparty,
the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside
party. All of the City's investments were insured, registered, or held by the counterparty’s trust department in the City’s name.
On September 29,2014,IMET was informed of defaults on certain loans believed to be guaranteed in its Convenience Fund
caused by fraud on the part of First Farmer's Financial (FFF),a USDA approved lender.This resulted in a decrease in the
value of the City's IMET investment in the amount of $552,862 and leaving an impairment on the remaining balance of
$328,414. The City believes that it will recover the remaining value of the investment.
Concentration of Credit Risk.It is the policy of the City to diversify its investment portfolio.Investments shall be diversified
to eliminate the risk of loss resulting from overconcentration in a security, maturity, issuer, or class of securities.
Custodial Credit Risk. For a deposit, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its deposit or collateral securities that are in the possession of an outside party.
Collateral is required for City deposits equal to or greater than the amount of City deposits which exceed FDIC insured
amounts. The City's depository pledges a Federal Home Loan Bank line of credit in the City's name as collateral. All of the
City's deposits were insured or collateralized at December 31, 2018.
The City has the following recurring fair value measurements as of December 31, 2018. The investments in municipal bonds
and mutual funds are valued using quoted matrix pricing models (Level 2 inputs).
- 35 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 4.RECEIVABLES
A.Summary of Receivables
General
Governmental Business-Type
Activities Activities Total
Receivables (net, where applicable,
of allowances for uncollectibles):
Athletic tax 1,155,415$ -$ 1,155,415$
Amusement tax 26,375 - 26,375
Cigarette tax 36,000 - 36,000
Hotel tax 114,047 - 114,047
Liquor tax 322,267 - 322,267
Gas use tax 43,728 - 43,728
Local motor fuel tax 100,872 - 100,872
Grants receivable 57,962 - 57,962
Parking tax 53,908 - 53,908
Police detail 181,485 181,485
Franchise fees - 73,117 73,117
Transportation network tax 89,136 89,136
Other miscellaneous 60,874 189,108 249,982
Net Total Receivables 2,242,069$ 262,225$ 2,504,294$
B.Loans Receivable - Special Revenue Funds
Loan Interest Loans Loan Loan
Type Rates Beginning Made Repayments Adjustments Ending
Title Transfer 0% - 8%2,359,961$ 154,645$ 61,060$ 2,398$ 2,455,944$
Amortizing 0% - 8% 1,143,208 33,922 80,625 1,022 1,097,527
Forgivable 0% - 8% 4,710,251 139,785 - (38,356) 4,811,680
Allowance (78,000)- - - (78,000)
Total Loans 8,135,420$ 328,352$ 141,685$ (34,936)$ 8,287,151$
Other receivables as of December 31,2018 for the government’s individual major funds,nonmajor,internal service funds and fiduciary funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
The City provides resources to city residents for the sale and rehabilitation of single-family and multi-family housing.Initial funding for these resources
was from Community Development Block Grant (CDBG)and Housing and Urban Development (HUD)Funds.Three types of loans are made:(1)title
transfer loans which are due in full when the housing unit is sold,(2)amortizing loans which are due in monthly installments over varying lengths of
time,and (3)forgivable loans which are forgiven over varying lengths of time based on occupancy requirements.Repayments of principal and any
interest earned on these receivables,which are recorded in the respective Special Revenue Funds,are used to make additional rehabilitation loans.An
allowance of $78,000 exists in the Special Revenue Funds due to doubtful accounts. Loan activity for the current period is summarized as follows:
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate
liabilities of the current period.Governmental funds also defer revenue recognition in connection with resources that have been received,but not yet
earned.
- 36 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 5. CAPITAL ASSETS
A. Capital Asset Activity
Capital asset activity for the fiscal year ended December 31, 2018 was as follows:
Beginning Additions Deletions Transfers Ending
Governmental Activities:
Capital assets, not being depreciated:
Land 7,193,044$ -$ -$ -$ 7,193,044$
Right of way 18,695,896 - - - 18,695,896
Artwork 155,000 218,551 - - 373,551
Construction in progress 11,192,371 18,156,477 1,973,167 - 27,375,681
Total Capital Assets, not being Depreciated 37,236,311 18,375,028 1,973,167 - 53,638,172
Capital Assets, being Depreciated/Amortized:
Buildings and improvements 83,362,598 3,558,702 - - 86,921,300
Office equipment and furniture 5,856,943 85,917 - - 5,942,860
Intangible assets 7,612,047 - - - 7,612,047
Machinery and equipment 27,118,568 1,329,968 952,913 - 27,495,623
Infrastructure 183,762,192 2,830,875 - - 186,593,067
Capitalized leases 502,532 - - - 502,532
Total Capital Assets being Depreciated/Amortized 308,214,880 7,805,462 952,913 - 315,067,429
Less Accumulated Depreciation/Amortization for:
Buildings and improvements 38,081,641 1,829,553 - - 39,911,194
Office equipment and furniture 4,101,740 316,763 - - 4,418,503
Intangible assets 6,416,767 239,350 - - 6,656,117
Machinery and equipment 18,738,274 1,831,816 766,585 - 19,803,505
Infrastructure 103,907,931 6,917,837 - - 110,825,768
Capitalized leases 479,085 3,907 - - 482,992
Total Accumulated Depreciation/Amortization 171,725,438 11,139,226 766,585 - 182,098,079
Total Capital Assets being Depreciated/Amortized, Net 136,489,442 (3,333,764) 186,328 - 132,969,350
Governmental Activities Capital Assets, Net 173,725,753$ 15,041,264$ 2,159,495$ -$ 186,607,522$
- 37 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 5. CAPITAL ASSETS - Continued
A. Capital Asset Activity - Continued
Beginning Additions Deletions Transfers Ending
Business-Type activities:
Capital Assets, not being Depreciated:
Land 4,644,510$ -$ 52,369$ -$ 4,592,141$
Construction in progress 1,658,401 1,302,317 830,317 - 2,130,401
Artwork 359,752 - - - 359,752
Total Capital Assets, not being Depreciated 6,662,663 1,302,317 882,686 - 7,082,294
Capital Assets, being Depreciated/Amortized:
Land improvements 7,783,500 317,380 - 1,413,390 9,514,270
Buildings and improvements 78,151,736 - - (1,413,390) 76,738,346
Leasehold improvements 772,131 - - - 772,131
Plant 46,468,734 144,064 - - 46,612,798
Transmission and distribution system 66,752,299 6,515,753 - - 73,268,052
Sewer system and underground lines 253,919,203 1,606,829 - - 255,526,032
Intangible assets 1,260,258 - - - 1,260,258
Equipment 4,147,796 714,942 - - 4,862,738
Parking meters 1,859,028 - - - 1,859,028
Total Capital Assets being Depreciated/Amortized 461,114,685 9,298,968 - - 470,413,653
Less Accumulated Depreciation/Amortization for:
Land improvements 2,191,877 429,504 - 435,480 3,056,861
Buildings and improvements 28,961,202 1,862,055 - (435,480) 30,387,777
Leasehold improvements 305,632 26,379 - - 332,011
Plant 18,298,330 1,425,040 - - 19,723,370
Transmission and distribution system 8,850,745 1,156,823 - - 10,007,568
Sewer system and underground lines 59,806,611 3,442,306 - - 63,248,917
Intangible assets 673,369 95,319 - - 768,688
Equipment 2,405,352 271,876 - - 2,677,228
Parking meters 1,076,118 132,390 - - 1,208,508
Total Accumulated Depreciation/Amortization 122,569,236 8,841,692 - - 131,410,928
Total Capital Assets being Depreciated/Amortized, Net 338,545,449 457,276 - - 339,002,725
Business-Type Activities Capital Assets, Net 345,208,112$ 1,759,593$ 882,686$ -$ 346,085,019$
- 38 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 5. CAPITAL ASSETS - Continued
A. Capital Asset Activity - Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General management and support 538,594$
Public safety 621,819
Public works 6,879,108
Housing and economic development 9,303
Recreation and cultural opportunities 1,394,869
Internal service funds 1,695,533
Total Depreciation Expense - Governmental Activities 11,139,226$
Business-Type Activities:
Water 2,581,863$
Sewer 3,615,269
Motor vehicle parking 2,644,560
Total Depreciation Expense - Business-Type Activities 8,841,692$
B.Construction Commitments
Capital Improvement Fund 25,225,987$
Water Fund 1,070,361
Total Construction Commitments 26,296,348$
The value of construction contracts signed, where the work has not yet been performed at December 31, 2018 is as follows:
- 39 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 6.INTERFUNDS
A. Interfund Accounts
At December 31, 2018, interfund receivables and payables consist of the following:
Due Due
Funds From To
General Fund 5,598,151$ 71,534$
Debt Service Fund 226,829 -
Water Fund - 156,630
Sewer Fund 1,581,126 268
Solid Waste Fund - 1,220,080
Motor Vehicle Parking System Fund - 541,072
Nonmajor Governmental Funds 154,575 802,866
Fiduciary 71,534 -
Internal Service Funds 134,031 4,973,796
Total 7,766,246$ 7,766,246$
Due Due
Funds From To
Component Unit
City
General Fund 184,855$ -$
Library
Library General Fund - 184,855
Total 184,855$ 184,855$
The outstanding balances between funds result mainly from the time lag between the dates that (1)interfund goods
and services are provided or reimbursable expenditures occur,(2)transactions are recorded in the accounting
system, and (3) payments between funds are made.
- 40 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 6.INTERFUNDS - Continued
B. Interfund Advances
At December 31, 2018, interfund advances consist of the following:
Advances Advances
Funds To From
Governmental Funds
General Fund
Capital Improvements Fund 1,500,000$ -$
Motor Vehicle Parking System 357,600 -
Total General Fund 1,857,600 -
Enterprise Funds
Motor Vehicle Parking System
General Fund - 357,600
Total Motor Vehicle Parking System - 357,600
Nonmajor Governmental Funds
Capital Improvements Fund - 1,500,000
Total Nonmajor Governmental Funds - 1,500,000
Grand Total 1,857,600$ 1,857,600$
- 41 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers
At December 31, 2018, transfers in (out) consist of the following:
Transfers Transfers
Funds In Out
Governmental Funds
General Fund
Emergency Telephone System 60,000$ -$
Washington National TIF Debt Service 1,265,430 -
Howard Ridge TIF 60,000 -
Capital Improvement Fund 500,000 19,907
Water 3,549,555 -
Sewer 330,167 -
Motor Vehicle Parking System 900,000 -
Solid Waste - 705,967
Motor Fuel Tax 957,990 -
West Evanston TIF 30,000 -
General Obligation Debt Service Fund - 2,666,544
Good Neighbor 480,000 -
Total General Fund 8,133,142 3,392,418
General Obligation Debt Service Fund
General 2,666,544 -
Insurance 9,632 -
Fleet 33,442 -
Sewer 469,297 -
Special Assessment 263,427 -
Capital Improvement Fund 126,815 -
Crown Capital 316,380 -
Chicago-Main TIF 107,561 -
Dempster Dodge TIF 74,104 -
Howard Ridge TIF 45,319 -
Community Development Block Grant 6,792 -
Emergency Telephone System 13,366 -
Neighborhood Stabilization 4,648 -
Total General Obligation Debt Service Fund 4,137,327 -
Transfers are used to (1)move revenues from the fund with collection authorization to the Debt Service Fund as debt
service principal and interest payments become due,(2)move restricted amounts from borrowings to the Debt Service
Fund to establish mandatory reserve accounts,(3)move restricted General Fund revenues to finance various programs that
the government must account for in other funds in accordance with budgetary authorization,including amounts provided
as subsidies or matching funds for various grant programs.
- 42 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Nonmajor Governmental Funds
Dempster Dodge TIF
General Obligation Debt Service Fund -$ 74,104$
Total Dempster Dodge TIF - 74,104
Howard Ridge TIF
General - 60,000
General Obligation Debt Service Fund - 45,319
Total Howard Ridge TIF - 105,319
Chicago-Main TIF
General Obligation Debt Service Fund - 107,561
Total Chicago-Main TIF - 107,561
Washington National TIF Debt Service
General - 1,265,430
Capital Improvements - 5,690,446
Water Fund - 187,430
Sewer Fund - 187,430
Motor Vehicle Parking System - 3,037,704
Total Washington National TIF Debt Service - 10,368,440
West Evanston Tax Increment District
General - 30,000
Total West Evanston Tax Increment District - 30,000
Capital Improvements
General 19,907 500,000
Motor Fuel Tax Fund - 166,761
General Obligation Debt Service - 126,815
Good Neighbor Fund 450,000 -
Neighborhood Stabilization Fund 1,500,000 -
Washington National TIF Debt Service 5,690,446 -
Special Assessment Fund 250,000 -
Motor Vehicle Parking System Fund 350,000 -
Total Capital Improvement 8,260,353 793,576
Special Assessment
General Obligation Debt Service - 513,427
Total Special Assessment - 513,427
Crown Capital Fund
General Obligation Debt Service - 316,380
Total Crown Capital Fund - 316,380
Neighborhood Stabilization Program 2
General Obligation Debt Service - 4,648
Total Neighborhood Stabilization Program 2 - 4,648
Emergency Telephone System
General - 60,000
General Obligation Debt Service - 13,366
Total Emergency Telephone System - 73,366
- 43 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Nonmajor Governmental Funds - Continued
Motor Fuel Tax
General -$ 957,990$
Capital Improvements 166,761 1,500,000
Total Motor Fuel Tax 166,761 2,457,990
Community Development Block Grant
General Obligation Debt Service - 6,792
Total Community Development Block Grant - 6,792
Good Neighbor
General - 480,000
Capital Improvement Fund - 450,000
Total Good Neighbor - 930,000
Total Nonmajor Governmental Funds 8,427,114 15,781,603
Total Governmental Funds 20,697,583 19,174,021
Enterprise Funds
Water
General - 3,549,555
Washington National TIF Debt Service 187,430 -
Total Water 187,430 3,549,555
Sewer
General - 330,167
General Obligation Debt Service Fund - 469,297
Washington National TIF Debt Service 187,430 -
Total Sewer 187,430 799,464
Motor Vehicle Parking System
General - 900,000
Capital Improvements Fund - 350,000
Washington National TIF Debt Service 3,037,704 -
Total Motor Vehicle Parking System 3,037,704 1,250,000
Solid Waste
General 705,967 -
Total Enterprise Funds 4,118,531 5,599,019
- 44 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 6.INTERFUNDS - Continued
C. Interfund Transfers - Continued
Transfers Transfers
Funds In Out
Internal Service Funds
Fleet Fund
Debt Service Fund -$ 33,442$
Total Fleet Fund - 33,442
Insurance Fund
General Obligation Debt Service Fund - 9,632
Total Insurance Fund - 9,632
Total Internal Service Funds - 43,074
Total Primary Government 24,816,114 24,816,114
Total 24,816,114$ 24,816,114$
Note - Transfers between the primary government and component unit have been reclassified on the statement of activities.
- 45 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 8.LONG-TERM DEBT
A. Changes in Long-Term Debt
Final
Interest Maturity Balance Balance Due Within
Rate Date 12/31/2017 Issued Refunded Payments 12/31/2018 One Year
G.O. Debt Governmental Activities
Series 2008A 3.00%-5.00%12/1/2021 1,500,000$ -$ 1,185,000$ 315,000$ -$ -$
Series 2008C 3.00%-5.00%12/1/2028 6,484,260 - 6,025,980 458,280 - -
Series 2010A 2.00%-3.625%12/1/2029 4,720,000 - - 325,000 4,395,000 335,000
Series 2010B 1.00%-3.30%12/1/2019 1,829,307 - - 881,241 948,066 948,066
Series 2011A 2.00%-4.50%12/1/2031 9,986,758 - - 573,825 9,412,933 589,421
Series 2012A 2.00%-3.25%12/1/2032 6,630,000 - - 670,000 5,960,000 640,000
Series 2013A 2.00%-4.75%12/1/2033 9,175,000 - - 480,000 8,695,000 490,000
Series 2013B 2.00%-3.00%12/1/2025 12,734,126 - - 2,037,279 10,696,847 1,680,457
Series 2014 1.25%-5.00%12/1/2034 8,325,000 - - 380,000 7,945,000 395,000
Series 2015A 2.00%-4.00%12/1/2035 7,055,000 - - 290,000 6,765,000 300,000
Series 2015B 2.00%-3.00%12/1/2022 8,325,000 - - 1,550,000 6,775,000 1,550,000
Series 2016A 2.00%-4.00%12/1/2036 9,110,000 - - 390,000 8,720,000 395,000
Series 2016B 2.00%-3.00%12/1/2026 6,980,000 - - 705,000 6,275,000 720,000
Series 2017A 3.00%-4.00%12/1/2037 11,630,000 - - 385,000 11,245,000 440,000
Series 2017B 4.00%-5.00%12/1/2027 8,481,464 - - 905,609 7,575,855 946,982
Series 2017C 2.05%-4.00%12/1/2035 5,000,000 - - - 5,000,000 -
Series 2018A 3.12%-5.00%12/1/2043 - 24,385,000 - - 24,385,000 -
Series 2018B 2.29%-5.00%12/1/2038 - 9,675,439 - - 9,675,439 -
Series 2018C 4.00%-5.00%12/1/2038 - 6,662,680 - - 6,662,680 87,230
Series 2018D 3.70%-4.25%12/1/2035 - 3,570,000 - - 3,570,000 -
Subtotal Governmental Activities 117,965,915 44,293,119 7,210,980 10,346,234 144,701,820 9,517,156
Bonds premium 4,185,247 2,595,956 - 427,270 6,353,933 -
OPEB liability - City 17,487,686 - - 363,899 17,123,787 744,786
OPEB liability - Internal Service Funds 99,878 - - 2,078 97,800 4,253
Net pension liability - IMRF 12,614,160 - - 12,614,160 - -
Net pension liability - Police Pension 110,994,072 7,276,021 - - 118,270,093 -
Net pension liability - Firefighters' Pension 94,343,860 2,101,652 - - 96,445,512 -
Compensated absences payable - City 10,387,657 3,700,898 - 4,057,791 10,030,764 4,012,306
Compensated absences payable - Internal Service Funds 134,655 20,291 - 26,580 128,366 25,673
First Bank loan 648,812 - - - 648,812 648,812
Other loans - 3,131 - - 3,131 3,131
Claims payable 4,287,500 2,245,224 - 1,875,124 4,657,600 2,604,500
Subtotal Other Governmental Activities Liabilities 255,183,527 17,943,173 - 19,366,902 253,759,798 8,043,461
Total Governmental Activities Debt and Liabilities 373,149,442$ 62,236,292$ 7,210,980.00$ 29,713,136$ 398,461,618$ 17,560,617$
G.O. Debt Business-Type Activities
Series 2008B Sherman Garage 3.00%-5.00%12/1/2018 1,645,000$ -$ -$ 1,645,000$ -$ -$
Series 2008C Sewer 3.00%-5.00%12/1/2028 1,580,740 - 1,469,020 111,720 - -
Series 2010B W/S/San/Pkg 1.00%-3.30%12/1/2019 360,694 - - 173,759 186,935 186,935
Series 2011A W/S 2.00%-4.50%12/1/2031 3,063,238 - - 176,175 2,887,063 180,579
Series 2012A 2.00%-3.25%12/1/2032 3,590,000 - - 195,000 3,395,000 200,000
Series 2013A - Water 2.00%-4.75%12/1/2033 1,710,000 - - 80,000 1,630,000 80,000
Series 2013B 2.00%-3.00%12/1/2025 1,535,281 - - 1,535,281 - -
Series 2014 1.25%-5.00%12/1/2034 2,430,000 - - 100,000 2,330,000 105,000
Series 2015A 2.00%-4.00%12/1/2035 5,115,000 - - 200,000 4,915,000 210,000
Series 2016A 2.00%-4.00%12/1/2036 3,495,000 - - 140,000 3,355,000 140,000
Series 2017A 3.00%-4.00%12/1/2037 980,000 - - 35,000 945,000 40,000
Series 2018B 2.29%-5.00%12/1/2038 - 4,837,719 - - 4,837,719 -
Series 2018C 4.00%-5.00%12/1/2038 - 1,357,320 - - 1,357,320 17,770
Subtotal Business-Type Activities 25,504,953 6,195,039 1,469,020 4,391,935 25,839,037 1,160,284
IEPA loans 2.535%-3.59%Various 40,328,108 905,381 - 6,311,667 34,921,822 5,388,833
Bonds premium 971,097 446,562 - 74,022 1,343,637 -
Compensated absences payable - City 939,715 166,617 - 187,941 918,391 183,678
Net pension liability - IMRF 2,866,020 - - 2,866,020 - -
OPEB liability 831,818 - - 17,309 814,509 35,427
Subtotal Other Business-Type Activities Liabilities 5,608,650 613,179 - 3,145,292 3,076,537 219,105
Total Business-Type Activities Debt and Liabilities 71,441,711$ 7,713,599$ 1,469,020$ 13,848,894$ 63,837,396$ 6,768,222$
Total Governmental and Business-Type Activities Debt and Liabilities 444,591,153$ 69,949,891$ 8,680,000$ 43,562,030$ 462,299,014$ 24,328,839$
Note:Sewer Fund,Water Fund,Solid Waste Fund,Parking Fund,and General Fund have been used to liquidate IMRF pension liability.General Fund,Fleet Fund,Water Fund,
Parking Fund, Solid Waste Fund, and Sewer Fund have been used to liquidate other postemployment benefit obligations.
- 46 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 8. LONG-TERM DEBT - Continued
A. Changes in Long-Term Debt - Continued
Business-Type Activities - IEPA Loans
IEPA loans payable consist of the following:
Date of Final Interest Original
Issue Maturity Rates Indebtedness Balance
Various Various Various 102,646,759$ 34,921,822$
Total Business-Type Activities - IEPA Loan Debt 34,921,822$
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 $102,646,759 in IEPA loans issued in 1994
through 2018. Proceeds from the loans provided financing for the Long-Term Sewer and Water Improvement Program. The
IEPA loans,payable from operating revenues,are payable through 2038.Annual principal and interest on the loans are
expected to require $6,181,068 of net revenues for the fiscal year 2019.The total principal and interest remaining to be paid
on the loans is $38,747,136.Principal and interest paid for the current period and total customer net revenues were
$7,248,426 and $9,669,676, respectively.
- 47 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 8. LONG-TERM DEBT - Continued
B.General Obligation Bonds Payable
Year Ending Governmental Activities Business-Type Activities
December 31, Principal Interest Principal Interest
2019 9,517,156$ 5,130,062$ 1,160,284$ 945,149$
2020 9,776,537 4,864,546 1,171,072 906,778
2021 10,064,386 4,572,180 1,211,400 836,472
2022 10,607,505 4,258,256 1,228,787 817,491
2023-2027 42,869,926 3,894,804 1,277,781 769,276
2028-2032 30,610,932 14,475,411 8,106,404 2,965,980
2033-2037 21,287,515 7,676,284 7,954,186 1,404,343
2038-2042 8,342,863 3,155,639 3,729,123 301,767
2043-2047 1,625,000 919,025 - -
Total 144,701,820$ 48,946,207$ 25,839,037$ 8,947,256$
Current Refunding
In August 2018,the City issued Series 2018A General Obligation Bonds for a total of $24,385,000 with interest rates
ranging from 3.12%to 5.00%.The bonds were issued to provide financing for certain public improvement projects for
governmental activities.
Also in August 2018,the City issued Series 2018B General Obligation Bonds for a total of $16,545,000 with interest
rates ranging from 2.29%to 5.00%.Proceeds were allocated to governmental activities ($9,675,439),business-type
activities ($4,837,719),and component unit ($2,031,842).The bonds were issued to provide financing for certain public
improvement projects for governmental activities, business-type activities, and component unit activities.
The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds.
In August 2018,the City issued Series 2018C General Obligation Refunding Bonds for a total of $8,020,000 with
interest rates ranging from 4.00%to 5.00%.The bonds were issued to currently refund $1,185,000 of the General
Obligation Bonds, Series 2008A and $7,495,000 of the General Obligation Bonds, Series 2008C.
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.
On August 7,2018,the City issued $8,020,000 in General Obligation Refunding Bonds,Series 2018C,due in annual
installments of $105,000 to $1,105,000 plus interest at 4%to 5%through December 1,2028 to refund a portion of the
General Obligation Bonds,Series 2008 in the amount of $10,960,000.This transition resulted in a reduction of total debt
service payments decrease in future debt payments of $992,994,which results in an economic gain (difference between
present value of the debt service payments of the refunded and refunding bonds) of $962,925.
In August 2018,the City issued Series 2018D General Obligation Bonds for a total of $3,570,000 with interest rates
ranging from 3.70%to 4.25%.The bonds were issued to provide financing for certain public improvement projects for
governmental activities.
- 48 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 8. LONG-TERM DEBT - Continued
C.Notes Payable - IEPA Loans
Notes payable - IEPA debt service requirements to maturity are as follows:
For the Fiscal
Year Ending Principal Interest
2019 5,388,833$ 792,235$
2020 5,040,700 661,205
2021 4,547,505 534,465
2022 3,276,378 433,980
2023 3,356,341 354,016
2024-2028 9,871,791 811,714
2029-2033 2,625,082 212,399
2034-2038 815,192 25,299
Total 34,921,822$ 3,825,313$
D.Loan with First Bank and Trust, Evanston
E.Postemployment Benefits other than Pensions (Defined Benefit Plan)
Business-Type Activities
As of December 31,2018,the City currently has 23 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.
The City and the Library administer a single-employer defined benefit health care plan which provides coverage to active
employees and retired members. Benefit provisions are established through collective bargaining agreements and state
that eligible retires and their spouses at established contribution rates.
The City has a loan with First Bank and Trust, Evanston. The balance at December 31, 2018 is $648,812.
Contribution requirements are established through Illinois State laws.The City and the Library implicitly contributes the
difference between retiree's contributions and unblended rates.Retirees pay 100%of the blended premiums to cover
themselves and their covered dependents ranging from $540 for single coverage to $1,984 for family coverage.The City
pays 100%of health care premiums for police officers and firefighters,their dependents and their surviving spouses and
dependent children if they were injured or killed in the line of duty during an emergency,ranging from $493 for single
coverage to $1,984 for family coverage.For the year ended December 31,2018,the City and Library's estimated
contribution to the plan is $797,159.The City's and the Library's annual other postemployment benefit (OPEB)cost
(expense)is calculated based on the annual required contribution of the employer (ARC),an amount actuarially
determined in accordance with parameters of GASB Statement No.75.The ARC represents a level of funding that,if
paid on an ongoing basis,is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) over a period not to exceed 30 years.
The City's and the Library's group health insurance plan provides coverage to active employees and retirees (or other
qualified terminated employees)at blended premium rates.This results in an other postemployment benefit (OPEB)for
the retirees,commonly referred to as an implicit rate subsidy.The group health insurance plan does not issue a publicly
available financial report.
- 49 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 8. LONG-TERM DEBT - Continued
E.Postemployment Benefits other than Pensions (Defined Benefit Plan) - Continued
Membership
Retirees and beneficiaries current receiving benefits 62
Terminated employees entitles to benefits but not yet receiving them 14
Active employees 710
Total 786
Actuarial valuation date December 31, 2018
Actuarial cost method Entry-age normal
Inflation 3.00%
Discount rate 4.10%
Healthcare cost trend rates 8.50% in Fiscal
2018, to an
ultimate trend
rate of 4.50%
Asset valuation method N/A
Mortality rates RP - 2014 Blue
Collar base rates
for Police and
Fire, RP-2014
base rates for all
other employees,
projected to
2018 using scale
MP2018.
Discount Rate
The total OPEB liability was determined by an actuarial valuation performed as of December 31,2018 using the
following actuarial methods and assumptions.
The discount rate was based on the S&P Municipal Bond 20 year high-grade rate index rate for tax exempt general
obligation municipal bonds rated AA or better at December 31, 2018.
At December 31, 2018, membership consisted of:
Actuarial Assumptions and Other Inputs
- 50 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 8. LONG-TERM DEBT - Continued
E.Postemployment Benefits other than Pensions (Defined Benefit Plan) - Continued
City Library
Balances at January 1, 2018 (Restated)18,419,382$ 298,032$
Changes for the period
Service cost 1,034,278 15,750
Interest 620,715 9,453
Changes in assumptions (1,253,077) (19,448)
Implicit benefit payments (785,202) (11,957)
Other changes - -
Net changes (383,286) (6,202)
Balances at December 31, 2018 18,036,096$ 291,830$
Rate Sensitivity
Current
1% Decrease Discount Rate 1% Increase
(3.10%)(4.10%)(5.10%)
City $ 20,043,283 $ 18,036,096 $ 15,345,235
Library 305,228 291,830 233,684
Total OPEB Liability $ 20,348,511 $ 18,327,926 $ 15,578,919
Current
1% Decrease Discount Rate 1% Increase
(7% to 3.5%)(8% to 4.5%)(9% to 5.5%)
City $ 15,930,285 $ 18,036,096 $ 20,597,746
Library 242,593 291,830 313,671
Total OPEB Liability $ 16,172,878 $ 18,327,926 $ 20,911,417
Deferred
Inflows of
Resources
Changes in assumption $ 1,141,718
Total $ 1,141,718
Year Ending
December 31,
2019 (110,649)$
2020 (110,649)
2021 (110,649)
2022 (110,649)
2023 (112,649)
Thereafter (586,473)
Total (1,141,718)$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
The deferred outflows presented in the table above include amounts for the City. The Library’s proportionate share of
the deferred inflows of resources at December 31, 2018 was $18,473.
Changes in the Total OPEB Liability
The following is a sensitive analysis of total OPEB liability to changes in the discount rate and the healthcare cost trend
rate.The table below presents the total OPEB liability of the City and Library calculated using the discount rate of 4.10%
as well as what the City's and Library's total OPEB liability would be if it were calculated using a discount rate that is 1
percentage point lower (3.10%) or 1 percentage point higher (5.10%) than the current rate:
The table below presents the total OPEB liability of the City and Library calculated using the healthcare rate of 8%
decreasing to 4.5%as well as what the City's and Library’s total OPEB liability would be if it were calculated using a
healthcare rate that is 1 percentage point lower (7%decreasing to 3.5%)or 1 percentage point higher (9%decreasing to
5.5%) than the current rate:
For the year ended December 31,2018,the City recognized OPEB expense of $758,431.At December 31,2018,the City
reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:
Total OPEB Liability
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
- 51 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 9.FUND EQUITY
A.Restricted Net Position - Fiduciary Funds
Fiduciary Funds
Firefighters' Pension Fund restriction for employee pension benefits 75,781,118$
Police Pension Fund restriction for employee pension benefits 116,755,057
Total Fiduciary Funds 192,536,175$
B.Assigned Fund Balances
The following are the assigned fund balances:
General Fund
Assigned for Arts Council 20,948$
Assigned for Dutch elm inoculation 499,973
Assigned for parkway trees 60,722
Assigned for Butterfield sculpture 30,883
Assigned for scholarship contributions 10,806
Assigned for Noyes Center 317,180
Assigned for recreation group activities 207,123
Assigned for parks and recreation 595,863
Assigned for Mayor's programs 93,179
Assigned for IMRF - Pension 1,112,052
Assigned for compensated absences 1,181,867
Other assignments 172,624
Total General Fund 4,303,220
Nonmajor Governmental Funds
Assigned for capital improvements 14,443,712
Assigned for special assessment capital projects 2,620,789
Total Nonmajor Governmental Funds 17,064,501
Total Assigned Fund Balances 21,367,721$
- 52 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 10.INDIVIDUAL FUND ACTIVITIES
A.General Obligation Debt Service Fund
B.Water Fund
C.Special Service District No. 4
The City usually adopts several resolutions abating portions of the property tax debt service levies.The amount of
property taxes abated is derived from principal and interest payments by private assessments on street paving projects;
additional water/sewer service fees related to the citywide water/sewer improvement project;tax increment revenues in
the Washington National and Howard Hartrey Tax Increment Districts;revenues from the Motor Vehicle Parking
System Fund associated with the Maple Garage,Sherman Garage,and Church Street Self-Park Garage;and General
Obligation Debt Service Fund interest income.
On January 28,1997,the City executed a long-term water supply contract with the Village of Skokie,Illinois,to replace
an expiring contract.The contract took effect on March 1,1997 and continues in effect for a period of 20 years until
February 28,2017.The contract was extended further until October 31,2017.Currently,the City is working with the
Village of Skokie to have a new contract with revised terms to supply Lake Michigan water to the Village of Skokie.
The City also provides potable Lake Michigan water to the Northwest Water Commission (NWWC)under a long-term
water supply contract.Sale of potable water under this contract began on February 28,1985 and continues until
February 28,2030.Under the terms of the current contract,the City is to supply NWWC sufficient potable Lake
Michigan water to satisfy NWWC’s maximum 24-hour demands for Lake Michigan water for resale to NWWC’s
customers.
On August 13,2007,the City Council adopted Ordinance No.37-R-07 which extended the life of Special Service
District No.4 until December 31,2019.Special Service District No.4 comprises the central business district of the
City.The special district was established for the purpose of providing funds for special maintenance and repair and for
promotion and advertisement.The annual property tax levy for 2018 was $535,714 which includes an estimated
allowance amount of $10,714.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 11. RISK MANAGEMENT - CLAIMS AND JUDGMENTS
The changes in the balances of claims liabilities during the past two fiscal periods are as follows:
Workers’General
Compensation Liability Total
December 31, 2016 2,244,870$ 3,683,000$ 5,927,870$
New claims and/or estimate revisions 1,469,090 (55,786) 1,413,304
Claims payments (800,460) (2,253,214) (3,053,674)
December 31, 2017 2,913,500 1,374,000 4,287,500
New claims and/or estimate revisions 876,824 1,368,400 2,245,224
Claims payments (718,224) (1,156,900) (1,875,124)
December 31, 2018 3,072,100$ 1,585,500$ 4,657,600$
The City records estimated liabilities for workers'compensation and for general claims.Claims liabilities are based on estimates of the
ultimate cost of reported claims including future claim adjustment expenses.
Workers'compensation and general liability risks are accounted for in the Insurance Fund.The fund was established on March 1,1994
to administer general liability claims and workers'compensation programs on a cost-reimbursement basis.The fund accounts for the
aforementioned liabilities of the City, but does not constitute a transfer of risk from the City.
The City is exposed to various risks of loss related to torts;theft of,damage to,and destruction of assets;errors and omissions;natural
disasters;and injuries to the City's employees.The City maintains commercial all-risk property insurance to cover damage to city
facilities and contents and other losses including business interruption and loss of rents.The coverage is subject to a deductible of
$50,000 (except $100,000 for flood and earthquake)for each loss and each location.The City also maintains crime and fidelity
insurance coverage with a $25,000 deductible to a limit of $2,000,000.In addition,coverage is maintained for ambulance/paramedic
liability.
For workers'compensation,specific excess coverage in excess of $750,000 per occurrence is purchased from a commercial insurance
company. For general liability claims, the City retains risk of loss of $1,250,000 to a limit of $10,000,000.
For its health insurance coverages,the City participates through a sub-pool in the Intergovernmental Personnel Benefit Cooperative
(IPBC).IPBC is a public entity risk pool established in 1979 by certain units of local government in Illinois to administer some or all of
the personnel benefit programs (primarily medical,dental,and life insurance coverage)offered by these members to their officers and
employees and to the officers and employees of certain other governmental,quasi governmental,and nonprofit public service entities.
Management consists of a Board of Directors comprised of one appointed representative from each member.The officers of IPBC are
chosen by the Board of Directors from among their membership.The City does not exercise any control over the activities of IPBC
beyond its representation on the Board of Directors of the sub-pool.To obtain IPBC’s financial statements,contact the administrative
offices of IPBC at 301 East Irving Park Road, Streamwood, Illinois 60107.
- 54 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 12.CONTINGENCIES
NOTE 13.JOINT VENTURES
A.Solid Waste Agency of Northern Cook County
There are various claims and legal actions pending against the City for which provision has been made in the financial
statements.At the present time,the City believes that the reserves established are sufficient so that the expected liability for
these claims and legal actions will not materially exceed the amounts recorded in the financial statements.Amounts
received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal
government.Any disallowed claims,including amounts already collected,may constitute a liability of the applicable
funds.The amount,if any,of the expenditures which may be disallowed by the grantor cannot be determined at this time
although the City expects such amounts, if any, to be immaterial.
Under the 1992 project use agreement executed by the City with the Agency,the City’s share of project costs,including
debt service and disposal,is based on its share of deliveries to the Wheeling Transfer Station for each year.The City does
not control the Agency's fiscal management or operations nor is the City legally responsible for any more than its share of
the Agency's debt or operating deficits, if any.
On March 28,1988,the Evanston City Council authorized agreements providing for the City's participation in the Solid
Waste Agency of Northern Cook County (Agency)and in the interim financing of that Agency.The Agency was planned
and developed by the Northwest Municipal Conference,of which the City is a member.The Agency is empowered to plan,
finance, construct, and operate a solid waste disposal system.
The Agency is a municipal joint action agency created as of May 2,1988 under the provisions of the Intergovernmental
Cooperation Act (the Act),5 ILCS 220/3.2.The Agency consists of 23 municipalities.The Agency is governed by a
Board of Directors consisting of one official selected by each member community who serves a two-year term.Each
director has one vote.The Board of Directors determines the general policies of the Agency.The Executive Committee of
the Agency consists of seven persons elected by the Board of Directors.Each person is entitled to one vote.The Executive
Committee may take action not specifically reserved to the Board of Directors by the Act,the Agency agreement,or the by-
laws.
The authority to designate management,influence operations,and formulate budgets rests with the Board of Directors and
Executive Committee.No one member has the ability to significantly influence operations;therefore,the Agency is not a
component unit of any other governmental reporting entity.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 13.JOINT VENTURES - Continued
A.Solid Waste Agency of Northern Cook County - Continued
Summary of Financial Position as of April 30, 2018:
Current assets 1,836,349$
Capital assets, net of depreciation 8,155,404
Total Assets 9,991,753
Current liabilities 1,837,180
Total Liabilities 1,837,180
Deferred inflows of resources
Deferred rent 89,142
Net investment in capital assets 8,155,404
Restricted, revenue bonds -
Unrestricted deficit (89,973)
Net Position 8,065,431$
Summary of Revenues and Expenses for the Year Ended April 30, 2018:
Total revenues 12,145,359$
Total expenses (12,657,626)
Net Income (512,267)$
Complete financial statements for the Agency can be obtained at 2700 Patriot Blvd., Glenview, IL 60026.
- 56 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS
A.Plan Descriptions
Illinois Municipal Retirement Fund
Plan Administration
Plan Membership
Inactive employees or their beneficiaries
currently receiving benefits 671
Inactive employees entitled to but not
370
Active employees 542
Total 1,583
Benefits Provided
The IMRF data included in the table above includes membership of both the City and the Library.
IMRF provides two tiers of pension benefits.Employees hired prior to January 1,2011 are eligible for Tier 1 benefits.
For Tier 1 employees,pension benefits vest after eight years of service.Participating members who retire at age 55
(reduced benefits)or after age 60 (full benefits)with eight years of credited service are entitled to an annual retirement
benefit,payable monthly for life,in an amount equal to 1 2/3%of their final rate of earnings,for each year of credited
service up to 15 years,and 2%for each year thereafter.Employees hired on or after January 1,2011 are eligible for
Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire
at age 62 (reduced benefits)or after age 67 (full benefits)with ten years of credited service are entitled to an annual
retirement benefit,payable monthly for life,in an amount equal to 1 2/3%of their final rate of earnings,for each year
of credited service up to 15 years,and 2%for each year thereafter.IMRF also provides death and disability benefits.
These benefit provisions and all other requirements are established by state statute.
yet receiving benefits
At December 31, 2017, IMRF membership consisted of:
All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF
as participating members.
The City contributes to the Illinois Municipal Retirement Fund (IMRF),a defined benefit agent multiple-employer
public employee retirement system that acts as a common investment and administrative agent for local governments
and school districts in Illinois (other than those covered by the Police or Firefighters'Pension Plan).The Illinois
Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General
Assembly.IMRF issues a publicly available financial report that includes financial statements and supplementary
information for the plan as a whole,but not by individual employer.That report may be obtained by writing to the
Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting.
Employer and employee contributions are recognized when earned in the year that the contributions are required,
benefits and refunds are recognized as an expense and liability when due and payable.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Contributions
Actuarial Assumptions
Actuarial valuation date December 31, 2017
Actuarial cost method Entry-age normal
Assumptions
Inflation 2.50%
Salary increases 3.39% to 14.25%
Interest rate 7.50%
Cost of living adjustments 3.00%
Asset valuation method Market value
The City’s net pension liability (asset)was measured as of December 31,2017 and the total pension liability used to
calculate the net pension liability (asset)was determined by an actuarial valuation performed as of the same date using
the following actuarial methods and assumptions.
For nondisabled retirees,an IMRF specific mortality table was used with fully generational projection scale MP-2017
(base year 2015).IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality
Table with adjustments to match current IMRF experience.For disabled retirees,an IMRF specific mortality table was
used with fully generational projection scale MP-2017 (base year 2015).IMRF specific rates were developed from the
RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for nondisabled lives.For
active members,an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base
year 2015).IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to
match current IMRF experience.
Employees participating in IMRF are required to contribute 4.50%of their annual covered salary to IMRF.The
member rate is established by state statute.The City is required to contribute the remaining amounts necessary to fund
IMRF as specified by statue.The employer contribution rate for the calendar year ended December 31,2018 was
9.42% of covered payroll.
Changes in assumptions related to the investment rate of return were made since the prior measurement date.
- 58 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Discount Rate
Changes in Net Pension Liability
(a)(b)(a) - (b)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Balances at
January 1, 2017 235,880,382$ 218,896,816$ 16,983,566$
Changes for the period
Service cost 3,970,214 - 3,970,214
Interest 17,355,320 - 17,355,320
Difference between expected and
actual experience (2,489,328) - (2,489,328)
Changes in assumptions (7,652,648) - (7,652,648)
Employer contributions - 3,702,271 (3,702,271)
Employee contributions - 1,693,912 (1,693,912)
Net investment income - 39,438,193 (39,438,193)
Benefit payments and refunds (12,922,439) (12,922,439) -
Administrative expense - - -
Other (net transfer)- (4,817,948) 4,817,948
Net changes (1,738,881) 27,093,989 (28,832,870)
Balances at
December 31, 2017 234,141,501$ 245,990,805$ (11,849,304)$
The discount rate used to measure the total pension liability was 7.50%.The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current contribution rate and that
the City contributions will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate.Based on those assumptions,the City’s fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members.
The table presented above includes amounts for both the City and the Library.The City’s proportionate share of the
net pension liability (asset)at January 1,2017,the employer contributions,and the net pension liability (asset)at
December 31,2017 was $15,480,181,$3,358,330,and $(10,748,504),respectively.The Library’s proportionate share
of the net pension liability (asset)at January 1,2017,the employer contributions and the net pension liability (asset)at
December 31, 2017 was $1,503,385, $605,526, and $(1,100,800), respectively.
- 59 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience 216,234$ 2,815,366$
Changes in assumption 39,384 5,223,805
Net difference between projected and actual earnings
on pension plan investments - 10,478,732
Employer contributions after the measurement date 3,277,216 -
Total 3,532,834$ 18,517,903$
Year Ending
December 31,
2019 (3,789,797)$
2020 (4,213,432)
2021 (5,998,620)
2022 (4,260,436)
Thereafter -
Total (18,262,285)$
For the year ended December 31,2018,the City recognized pension expense of $6,129,997.At December 31,2018,
the City reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following
sources:
The deferred outflows presented in the table above include amounts for the City.The Library’s proportionate share of
the deferred outflows and inflows of resources at December 31, 2018 was $361,790 and $1,896,498, respectively.
$3,277,216 reported as deferred outlfows of resources related to pensions resulting from contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the reporting year ending
December 31,2019.Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to IMRF will be recognized in pension expense as follows:
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A.Plan Descriptions - Continued
Illinois Municipal Retirement Fund - Continued
Discount Rate Sensitivity
Current
1% Decrease Discount Rate 1% Increase
(6.50%)(7.50%)(8.50%)
City 14,019,846$ (10,748,504)$ (31,216,435)$
Library 1,435,833 (1,100,800) (3,197,009)
Total 15,455,679$ (11,849,304)$ (34,413,444)$
The following is a sensitivity analysis of the net pension liability (asset)to changes in the discount rate.The table
below presents the net pension liability (asset)of the City calculated using the discount rate of 7.50%as well as what
the City’s net pension liability (asset)would be if it were calculated using a discount rate that is 1 percentage point
lower (6.50%) or 1 percentage point higher (8.50%) than the current rate:
- 61 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans
Plan Administration
Plan Membership
At January 1, 2018, plan membership consisted of:
Firefighters'
Police Pension Pension
Inactive plan members or beneficiaries
currently receiving benefits 181 136
Inactive plan members entitled to
but not yet receiving benefits 18 3
Active plan members 163 104
Total 362 243
Benefits Provided
The Police Pension Plan and Firefighters'Pension Plan are contributory,defined benefit public employee retirement plans
administered by the City and a Board of Trustees for each fund.All sworn city police officers and firefighters are
participants in the plans.The plans do not issue stand-alone financial reports and they are not included in the report of a
public employee retirement system or another entity.The City accounts for the Police Pension and Firefighters'Pension
Plans as pension trust funds.
The plans are governed by a five-member pension board.Two members appointed by the City's Council,one elected by
retired pension members, and two elected by active members, constitute the pension board.
The Police and Firefighters'Pension Plans are accounted for on the economic resources measurement focus and the accrual
basis of accounting.Employer and employee contributions are recognized when earned in the year that the contributions are
required, benefits and refunds are recognized on an expense and liability when due and payable.
For employer contributions,the City’s budget policy is to fund pension plans at the funding level recommended annually by
the actuary. The General Fund is used to liquidate the net pension liability.
As provided for in the Illinois Compiled Statutes,the Police and Firefighters'Pension Funds provide retirement benefits as
well as death and disability benefits to employees grouped into two tiers.Tier 1 is for employees hired prior to January 1,
2011 and Tier 2 is for employees hired after that date.The following is a summary of the Police and Firefighters'Pension
Funds as provided for in Illinois Compiled Statutes.
Employees participating in IMRF are required to contribute 4.50%of their annual covered salary to IMRF.The member
rate is established by state statute.The City is required to contribute the remaining amounts necessary to fund IMRF as
specified by statue.The employer contribution rate for the calendar year ended December 31,2018 was 9.42%of covered
payroll.
- 62 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS – Continued
A. Plan Descriptions - Continued
Benefits Provided - Continued
Police Pension Plan
Tier 2 ‑Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to
receive a monthly pension of 2.5%of the final average salary for each year of creditable service.The salary is initially
capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary.Employees with 10 or
more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit.The monthly pension
of a police officer shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the
first anniversary of the pension start date,whichever is later.Each annual increase shall be calculated at 3%or one-half the
annual unadjusted percentage increase in the consumer price index (CPI), whichever is less.
Tier 1 -Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to
receive a monthly retirement benefit of one-half of the monthly salary attached to the rank held in the fire service at the date
of retirement.The monthly pension shall be increased by one-twelfth of 2.5%of such monthly salary for each additional
month over 20 years of service through 30 years of service to a maximum of 75%of such monthly salary.Employees with
at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement
benefit.The monthly pension of a firefighter who retired with 20 or more years of service after January 1,1977 shall be
increased annually,following the first anniversary date of retirement and paid upon reaching at least the age 55,by 3%of
the original pension and 3% compounded annually thereafter.
Tier 2 ‑Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to
receive a monthly pension of 2.5%of the final average salary for each year of creditable service.The salary is initially
capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary.Employees with 10 or
more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit.The monthly pension
of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first
anniversary of the pension start date,whichever is later.Each annual increase shall be calculated at 3%or one-half the
annual unadjusted percentage increase in the CPI, whichever is less.
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.
- 63 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Contributions
Investment Policy
Police Pension Fund
Police Pension Asset Class
Domestic Large-Cap Equities 3.25%
Domestic Small-Cap Equities 4.00%
International Equities 4.75%
Fixed Income 3.50%
REITS 4.25%
Cash 0.00%
Total
5.00%
32.00%
3.00%
3.00%
100.00%
5.00%
Covered employees are required to contribute 9.91%of their base salary to the Police Pension Plan.If an employee leaves
covered employment with less than 20 years of service,accumulated employee contributions may be refunded without
accumulated interest.The City is required to contribute the remaining amounts necessary to finance the plans as actuarially
determined by an enrolled actuary.Effective January 1,2011,the City's contributions must accumulate to the point where
the past service cost for the Police Pension Plan is 90%funded by the year 2040.For the year ended December 31,2018,
the City's contribution was 66.03% of covered payroll.
Participants contribute a fixed percentage of their base salary to the Firefighters'Pension Plan.At December 31,2018,the
contribution percentage was 9.455%.If a participant leaves covered with less than 20 years of service,accumulated
participant contributions may be refunded without accumulated interest.The City is required to contribute the remaining
amounts necessary to finance the plan as actuarially determined by an enrolled actuary.Effective January 1,2011,the City's
contributions must accumulate to the point where the past service cost for the Firefighters'Pension Plan is 90%funded by
the year 2040. For the year ended December 31, 2018, the City's contribution was 71.83% of covered payroll.
Permitted Deposits and Investments -Statutes and the Police Pension Fund’s (the Fund)investment policy authorize the
Fund to make deposits/invest in insured commercial banks,savings and loan institutions,obligations of the U.S.Treasury
and U.S.agencies,insured credit union shares,money market mutual funds with portfolios of securities issued or
guaranteed by the United States Government or agreements to repurchase these same obligations,repurchase agreements,
short-term commercial paper rated within the three highest classifications by at least two standard rating services,Illinois
Funds,IMET,certain non-U.S.obligations,Illinois municipal corporations tax anticipation warrants,veteran’s loans,
obligations of the State of Illinois and its political subdivisions,and Illinois insurance company general and separate
accounts,mutual funds and equity securities (not to exceed 65%of the total net position of the Fund),contracts and
agreements of ife insurance companies (no more than 10%of portfolio in real estate and no more than 10%of portfolio in
bonds with ratings of less than Baa1),and corporate bonds.During the year,no changes to the investment policy were
approved by the Board of Trustees.
The Fund's investment policy allows investments in all of the above listed accounts,but does exclude any repurchase
agreements.The Fund's investment policy,in accordance with Illinois Statutes,establishes the following target allocation
across asset classes:
Long-Term Expected
Target Allocation Real Rate of Return
52.00%
- 64 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Investment Policy - Continued
Police Pension Fund - Continued
Firefighters' Pension Fund
Firefighters' Pension Asset Class Target Allocation
Ultra Short Fixed Income 1.30%1.50%
U.S. Fixed Income 39.50%1.10%
U.S. Large Cap Growth Equity 15.30%6.60%
U.S. Large Cap Value Equity 15.60%6.30%
U.S. Mid Cap Growth Equity 3.40%7.80%
U.S. Mid Cap Value Equity 3.40%7.10%
U.S. Small Cap Growth Equity 1.10%8.70%
U.S. Small Cap Value Equity 1.10%7.80%
Europe Equity 4.20%4.90%
Japan Equity 2.00%5.60%
Emerging Market Equity 0.50%9.80%
Real Estate 2.00%5.50%
Infrastructure 5.60%3.80%
Equity Hedge Assets 2.00%2.30%
Equity Return Assets 3.00%3.80%
Total 100.00%
The long-term expected rate of return on the Fund's investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns,net of pension plan investment expenses,and
inflation)are developed for each major asset class.These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.Best estimates of arithmetic real rates of return for each major asset class included in the Fund's target asset
allocation as of December 31, 2018 are listed in the table above.
The Firefighters'Pension Fund (the Fund)allows funds to be invested in any type of security authorized by the Illinois
Pension Code.During the year,no changes to the investment policy were approved by the Board of Trustees.The Fund's
investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes:
Long-Term Expected
Real Rate of Return
The long-term expected rate of return on the Fund's investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns,net of pension plan investment expenses,and
inflation)are developed for each major asset class.These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.Best estimates of arithmetic real rates of return for each major asset class included in the Fund's target asset
allocation as of December 31, 2018 are listed in the table above.
- 65 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Investment Valuations
Investment Rate of Return
Deposits with Financial Institutions
Interest Rate Risk
Fair Value Less Than 1 Year 1 - 5 Years 6 - 10 Years Greater than 10 Years
Corporate bonds 28,603,683$ 1,145,406$ 19,222,516$ 7,079,755$ 1,156,006$
U.S. Treasuries 18,263,135 1,700,730 7,476,881 4,488,306 4,597,218
Federal Home Loan Bank 4,028,686 1,035,069 2,993,617 - -
Federal Home Loan Mortgage Corp 3,271,197 1,687,112 63,540 202,710 1,317,835
Fannie Mae 4,152,096 164,096 944,017 1,172,962 1,871,021
Ginnie Mae 117,708 32 19,126 10,921 87,629
Other U.S. Government Agencies 857,791 719,917 110,297 - 27,577
Total Police and
Firefighters' Investment $ 59,294,296 $ 6,452,362 $ 30,829,994 $ 12,954,654 $ 9,057,286
Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure,the Funds'
deposits may not be returned to them.The Funds'investment policies do not require pledging of collateral for all bank
balances in excess of federal depository insurance,since flow-through FDIC insurance is available for the Funds'deposits
with financial institutions.
The following table presents the investments and maturities of the Funds' debt securities as of December 31, 2018:
Police and Firefighters' Pension
Investment Type
In accordance with its investment policy,the Funds'limit exposure to interest rate risk by structuring the portfolio to
provide liquidity for operating funds not needed within a one-year period.The investment policies does not limit the
maximum maturity length of investments in the Funds'.
Investment Maturities (In Years)
For the year ended December 31,2018,the Police Pension Plan annual money-weighted rate of return on pension plan
investment,net of pension plan investment expense,was (5.20)%.The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
All investments in the Police and Firefighters'Pension Plans are stated at fair value and are recorded as of the trade date.
Fair value is based on quoted market prices at December 31 for debt securities,equity securities and mutual funds,and
contract values for any insurance contracts.Investment income is recognized as earned.Gains and losses on sales and
exchanges of fixed income securities are recognized on the transaction date.
For the year ended December 31,2018,the Firefighters'Pension Plan annual money weighted rate of return on pension plan
investment,net of pension plan investment expense,was (4.54)%.The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Interest Rate Risk (Continued)
Credit Risk
Custodial Credit Risk - Investments
The Police and Firefighters'Pension Funds categorize the fair value measurements within the fair value hierarchy
established by generally accepted accounting principles.The hierarchy is based on the valuation inputs used to measure the
fair value of the asset.Level 1 inputs are quoted prices in active markets for identical assets;Level 2 inputs are significant
other observable inputs; and Level 3 inputs are significant unobservable inputs.
The City's Police Pension Fund has the following recurring fair value measurements as of December 31,2018.The
Corporate Bonds,U.S.Treasury Obligations,Domestic and International Equity securities are valued using quoted market
prices (Level 1 inputs).Municipal bonds,and U.S.agency obligations are valued using matrix pricing models (Level 2
inputs).
The City's Firefighters'Pension Fund has the following recurring fair value measurements as of December 31,2018.The
Corporate bonds,U.S.Treasury Obligations,Domestic and International Equity securities are valued using quoted market
prices (Level 1 inputs).Municipal bonds,and U.S.agency obligations are valued using matrix pricing models (Level 2
inputs).
The Funds'limits its exposure to credit risk,the risk that the issuer of a debt security will not pay its par value upon
maturity,by investing in obligations guaranteed by the United States Government or securities issued by agencies of the
United States Government that are explicitly or implicitly guaranteed by the United States Government bonds and
investment grade bonds.The U.S.Treasury and agency obligations are rated by Moody’s Aaa,the corporate bonds are rated
between Baa3 and Aaa,and the municipal bonds are rated between Aa3 and Aaa.Illinois Funds is rated Aaa by Standard
and Poor’s.
Custodial credit risk for investments is the risk that,in the event of the failure of the counterparty to the investment,the
Funds'will not be able to recover the value of their investments that are in possession of an outside party.To limit its
exposure,the Funds'investment policies require all security transactions that are exposed to custodial credit risk to be
processed on a delivery versus payment (DVP)basis with the underlying investments held by a third party acting as the
Funds'agent separate from where the investment was purchased in the Funds'name.Illinois Funds and IMET are not
subject to custodial credit risk.
Concentration of Credit Risk -Illinois Compiled Statutes (ILCS)limits the Funds'investments in equities,mutual funds,
and variable annuities to 65%.Securities in any one company should not exceed 5%of the total fund.The blended asset
class is comprised of all other asset classes to allow for rebalancing the portfolio.
The Police Pension Trust Fund had no significant investments (other than U.S.Treasuries and corporate bonds)in any one
organization that represented 5% or more of net position available for benefits.
The Firefighters'Pension Trust Fund had no significant investments (other than corporate bonds)in any one organization
that represented 5% or more of net position available for benefits.
- 67 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Actuarial Assumptions
Actuarial valuation date
Actuarial cost method
Asset valuation method
Actuarial assumptions:
Projected salary increases graded by age
Inflation
Interest rate
Cost-of-living adjustments
Discount Rate
6.50%6.50%
From 3.00% to 1.25%From 3.00% to 1.25%
Mortality rates were based on the RP-2000 Combined Healthy Mortality table with a Blue Collar Adjustment;disabled
mortality rate is based on RP-2000 Disabled Retiree Mortality table.
The discount rate used to measure the total police pension liability was 6.50%.The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current contribution rate and that the
City contribution will be made at rates equal to the difference between actuarially determined contribution rates and the
member rate.Based on those assumptions,the Police Pension Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members.
The discount rate used to measure the total firefighters'pension liability was 6.50%.The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current contribution rate and that the
City contribution 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 Plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members.
2.50%2.50%
December 31, 2018 December 31, 2018
Entry-age normal Entry-age normal
From 7.36% to 3.62%From 7.36% to 3.62%
Market value Market value
Police Pension Firefighters' Pension
The total pension liability above was determined by an actuarial valuation performed using the following actuarial methods
and assumptions.
- 68 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Discount Rate (Continued)
Current Discount
1% Decrease Rate 1% Increase
Police Pension Fund:
Discount rate 5.50%6.50%7.50%
Net pension liability $ 150,130,316 $ 118,270,093 $ 92,098,251
Firefighters’ Pension Fund:
Discount rate 5.50%6.50%7.50%
Net pension liability $ 119,286,221 $ 96,445,512 $ 77,647,012
Total Net Pension Liability $ 269,416,537 $ 214,715,605 $ 169,745,263
Changes in the Net Pension Liability
Police Pension Fund
(a)(b)(a) - (b)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances at January 1, 2018 232,623,739$ 121,629,667$ 110,994,072$
Changes for the period
Service cost 4,285,425 - 4,285,425
Interest 14,433,770 - 14,433,770
Difference between expected and
actual experience 3,079,328 - 3,079,328
Changes in assumptions (7,459,427) - (7,459,427)
Employer contributions - 10,462,704 (10,462,704)
Employee contributions - 1,570,309 (1,570,309)
Net investment income - (4,911,053) 4,911,053
Benefit payments and refunds (11,937,685) (11,937,685) -
Administrative expense - (58,885) 58,885
Other (net transfer)- - -
Net changes 2,401,411 (4,874,610) 7,276,021
Balances at December 31, 2018 235,025,150$ 116,755,057$ 118,270,093$
- 69 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Changes in the Net Pension Liability - Continued
Firefighters' Pension Fund
(a)(b)(a) - (b)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balances at January 1, 2018 173,416,937$ 79,073,077$ 94,343,860$
Changes for the period
Service cost 3,026,223 - 3,026,223
Interest 10,741,734 - 10,741,734
Difference between expected and
actual experience 384,928 - 384,928
Changes in assumptions (6,192,362) - (6,192,362)
Employer contributions - 8,344,947 (8,344,947)
Employee contributions - 1,098,506 (1,098,506)
Net investment income - (3,478,827) 3,478,827
Benefit payments and refunds (9,150,830) (9,150,830) -
Administrative expense - (105,755) 105,755
Other (net transfer)- - -
Net changes (1,190,307) (3,291,959) 2,101,652
Balances at December 31, 2018 172,226,630$ 75,781,118$ 96,445,512$
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Police Pension Fund
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience 2,317,901$ 2,142,800$
Changes in assumption 16,168,633 -
Net difference between projected and actual earnings
on pension plan investments - 5,287,282
Total 18,486,534$ 7,430,082$
For the year ended December 31,2018,the City recognized police pension expense of $11,138,382.At December 31,
2018,the City reported deferred outflows of resources and deferred inflows of resources related to the Fund from the
following sources:
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CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources - Continued
Police Pension Fund - Continued
Year Ending
December 31,
2019 3,051,241$
2020 3,559,283
2021 2,301,255
2022 891,224
2023 1,253,449
Thereafter -
Total 11,056,452$
Firefighters' Pension Fund
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and actual experience 899,605$ 2,159,480$
Changes in assumption 11,761,238 -
Net difference between projected and actual earnings
on pension plan investments - 485,990
Total 12,660,843$ 2,645,470$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Police Pension Plan
will be recognized in pension expense as follows:
For the year ended December 31,2018,the City recognized firefighters'pension expense of $2,992,262.At December 31,
2018,the City reported deferred outflows of resources and deferred inflows of resources related to the Fund from the
following sources:
- 71 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 14.EMPLOYEE RETIREMENT SYSTEMS - Continued
A. Plan Descriptions - Continued
Police and Firefighters' Pension Plans - Continued
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources - Continued
Firefighters' Pension Fund - Continued
Year Ending
December 31,
2019 3,082,870$
2020 2,917,103
2021 2,046,693
2022 1,041,816
2023 926,891
Thereafter -
Total 10,015,373$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Firefighters'Pension
Plan will be recognized in pension expense as follows:
- 72 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 15.PENSION TRUST FUNDS
Fiduciary Funds Summary Financial Information
The following is summary financial information for the Police Pension Plan and the Firefighters' Pension Plan:
A. Schedule of Net Position
Firefighters'Police
Pension Pension Total
Assets
Cash and cash equivalents 1,226,315$ 3,431,066$ 4,657,381$
Investments at fair value
U.S. Treasury obligations 3,131,948 15,131,187 18,263,135
U.S. agency obligations 2,373,899 10,053,579 12,427,478
Corporate bonds 14,318,596 14,285,087 28,603,683
Common stock 2,094,014 28,666,273 30,760,287
Equity mutual funds 43,624,536 43,882,798 87,507,334
Index funds 8,842,920 - 8,842,920
Real estate - 1,005,346 1,005,346
Receivables
Accrued interest 145,542 251,535 397,077
Due from other governments 23,348 48,186 71,534
Total Assets 75,781,118 116,755,057 192,536,175
Liabilities
Accounts payable - - -
Total Liabilities - - -
Net Position Held in Trust
For Pension Benefits 75,781,118$ 116,755,057$ 192,536,175$
- 73 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 15.PENSION TRUST FUNDS - Continued
Fiduciary Funds Summary Financial Information - Continued
B. Changes in Plan Net Position
Firefighters'Police
Pension Pension Total
Additions
Contributions
Employer 8,344,947$ 10,462,704$ 18,807,651$
Plan members 1,098,506 1,570,309 2,668,815
Total Contributions 9,443,453 12,033,013 21,476,466
Investment Income
Net appreciation (depreciation)
in fair value of investments (5,617,686) (7,590,535) (13,208,221)
Interest on investments 2,230,596 2,971,614 5,202,210
Less investment expenses (91,737) (292,132) (383,869)
Total Investment Income (3,478,827) (4,911,053) (8,389,880)
Total Additions 5,964,626 7,121,960 13,086,586
Deductions
Administrative 105,755 58,885 164,640
Benefits payments 9,150,830 11,937,685 21,088,515
Total Deductions 9,256,585 11,996,570 21,253,155
Net Increase (Decrease)(3,291,959) (4,874,610) (8,166,569)
Net Position Held in Trust
For Pension Benefits
January 1 79,073,077 121,629,667 200,702,744
December 31 75,781,118$ 116,755,057$ 192,536,175$
- 74 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 16.EVANSTON LIBRARY COMPONENT UNIT
A.Types of Accounts and Securities
Custodial Credit Risk.For a deposit,custodial credit risk is the risk that,in the event of the failure of the
counterparty,the Library will not be able to recover the value of its deposit or collateral securities that are in the
possession of an outside party.At December 31,2018,all of the Library's deposits were insured or collateralized by
an agent of the Library in the Library's name.
Illinois Statutes authorize the Library to invest in obligations of the U.S.Treasury,in Government Sponsored
Enterprises (GSE)such as Federal Home Loan Mortgage Corporation (FHLMC),Federal Home Loan Bank (FHLB),
and Fannie Mae (FNMA);bankers acceptances as well as commercial paper rated only in the highest tier;
repurchase agreements of the highest grade;collateralized certificates of deposit issued by FDIC insured financial
institutions,money market mutual funds with portfolios limited to securities guaranteed by the United States
Government, IMET, and Illinois Funds.
Library investments consists of equities,ETFs,money market funds,mutual funds,corporate bonds,and U.S.
Treasuries.Investments are reported at fair value,except that non-negotiable certificate of deposits are stated at cost.
The Library has a formal investment policy adopted by its governing board to handle endowment funds.The funds
will be invested and administered by a three-member committee.It is the general policy of the Library to invest its
funds in a manner which will provide the highest investment return with the maximum security while meeting the
daily cash flow demands of the Library and conforming to all state and local statutes governing the investment of
public funds using "prudent person"standard for managing the overall portfolio.It may be noted though that the
Library has investments in equities which is not permissible under the state statutes.
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment.The
exposure to interest rate risk can be limited by structuring the portfolio to provide liquidity for cash requirements for
ongoing operations in shorter term securities.
Custodial Credit Risk.For an investment,custodial credit risk is the risk that,in the event of the failure of the
counterparty,the Library will not be able to recover the value of its investment or collateral securities that are in the
possession of an outside party. Illinois Funds are not subject to custodial credit risk.
Concentration of Credit Risk is the risk that the Library has a high percentage of its investments invested in one type
of investments.Currently,the Library has diversified its investments in various types of investments.The Library
investment policy provides the high/low limits for various type of investments like equity,fixed income securities,
and cash.
Credit Risk is the risk that the issuer of the debt security will not pay its par value upon maturity. The Library's
investment policy has several guidelines to minimize the potential losses on individual investment by diversifying the
investment portfolio, not permitting the investment in certain high risk securities. State law limits investments in
commercial paper, corporate bonds, and mutual bonds funds to the top two ratings issued by nationally recognized
statistical rating organizations.
Illinois Funds, created by the Illinois State Legislature under the control of the State Comptroller, operates as
qualified external investment pools in accordance with the criteria established in GASB Statement No. 79, Certain
External Investment Pools and Pool Participants, and thus, reports all investments at amortized cost rather than
market value. The investment in The Illinois Funds by participants is also reported at amortized cost. Illinois Funds
does not have any limitations or restrictions on participant withdrawals. The Illinois Funds Treasurer's Office issues
a separate financial report for the Illinois Funds which may be obtained by contacting the Administrative Office at
Illinois Business Center, 400 West Monroe Street, Suite 401, Springfield, Illinois 62704.
IMET is a not-for-profit investment trust formed pursuant to the Illinois Municipal code and managed by a Board of
Trustees elected from the participating members. IMET is not registered with the SEC as an investment company.
Investments in IMET are valued at IMET's share price, the price for which the investment could be sold.
- 75 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 16.EVANSTON LIBRARY COMPONENT UNIT - Continued
B.Reconciliation of Cash and Investments
Cash and Equivalents 2,977,532$
Investments 3,768,611
Total per Statement of Position $ 6,746,143
Cash in bank 2,977,532$
Vanguard Money Market 117,019
Vanguard Equity Mutual Funds 3,651,592
Total Cash and Investments $ 6,746,143
C.Summary of Receivables
Receivables:
Property taxes 7,103,437$
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 19,641,590 158,769 - 19,800,359
Office equipment and furniture 2,285,009 - - 2,285,009
Infrastructure 230,006 - - 230,006
Library collections 8,297,234 942,278 - 9,239,512
Capitalized leases 266,191 - - 266,191
Total capital assets being depreciated/amortized 30,720,030 1,101,047 - 31,821,077
Less Accumulated Depreciation/Amortization for:
Buildings and improvements 8,498,178 463,446 - 8,961,624
Office equipment and furniture 2,285,009 - - 2,285,009
Infrastructure 125,475 14,757 - 140,232
Library collections 7,945,516 209,857 - 8,155,373
Capitalized leases 266,190 - - 266,190
Total Accumulated Depreciation/Amortization 19,120,368 688,060 - 19,808,428
Total Capital Assets being Depreciated/Amortized, Net 11,599,662 412,987 - 12,012,649
Library Activities Capital Assets, Net 11,911,042$ 412,987$ -$ 12,324,029$
- 76 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 16. EVANSTON LIBRARY COMPONENT UNIT - Continued
E.Long-Term Debt
Final Restated
Interest Maturity Balance Balance Due Within
Rate Date 12/31/2017 Issued Payments 12/31/2018 One Year
General Obligations Debt
Series 2013B 2.00%-3.00%12/1/2025 275,593$ -$ 87,440$ 188,153$ 24,543$
Series 2016A 2.00%-4.00%12/1/2036 630,000 - 25,000 605,000 25,000
Series 2017A 3.00%-4.00%12/1/2037 1,380,000 - 40,000 1,340,000 50,000
Series 2017B 4.00%-5.00%12/1/2027 743,535 - 79,391 664,144 83,019
Series 2018B 2.29%-5.00%12/1/2038 - 2,031,842 - 2,031,842 -
3,029,128 2,031,842 231,831 4,829,139 182,562
Total OPEB liability 298,032 - 6,202 291,830 12,693
Compensated absences payable - Library 439,405 124,495 175,762 388,138 77,627
Net pension liability - IMRF 1,503,385 - 1,503,385 - -
Total Long-Term Debt 5,269,950$ 2,156,337$ 1,917,180$ 5,509,107$ 272,882$
At December 31, 2018, IMRF is a net pension asset of $1,100,800.
Year Ending
December 31, Principal Interest
2019 182,561$ 170,876$
2020 167,390 165,746
2021 174,214 160,913
2022 203,707 155,838
2023 211,143 149,152
2024-2028 1,381,878 592,302
2029-2033 1,235,614 339,509
2034-2038 1,272,632 120,693
Total 4,829,139$ 1,855,029$
The following schedule illustrates the annual debt service requirements to maturity for Library General Obligation Bonds.
- 77 -
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year Ended December 31, 2018
NOTE 17.CHANGE IN ACCOUNTING PRINCIPLE
Total Component Unit
Governmental Business-Type Primary Evanston
Activities Activities Government Public Library
Beginning Net Position (Deficit), as Previously Reported $ (101,049,210)292,695,725$ 191,646,515$ 13,720,890$
Change in accounting principle to record
City total OPEB liability (14,735,431)(376,909) (15,112,340) (193,147)
Beginning Net Position (Deficit), Restated $ (115,784,641) $ 292,318,816 $ 176,534,175 $ 13,527,743
Solid Motor Vehicle
Water Sewer Waste Parking System
Beginning Net Position (Deficit), as Previously Reported $ 69,863,941 160,137,761$ (1,061,966)$ 63,755,989$
Change in accounting principle to record
City total OPEB liability (88,470)(70,431) (143,718) (74,290)
Beginning Net Position (Deficit), Restated $ 69,775,471 $ 160,067,330 $ (1,205,684) $ 63,681,699
Internal
Service Fund
Fleet Services
Beginning Net Position, as Previously Reported $ 341,448
Change in accounting principle to record
City total OPEB liability (8,757)
Beginning Net Position, Restated $ 332,691
The City adopted new accounting guidance,GASB Statement No.75,Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions,during the year ended December 31,2018.The implementation of this
guidance resulted in changes to the postemployment benefit related liability,revenue,expense,notes presented in the notes to
financial statements and to the required supplementary information.The beginning net position reported in the government-
wide financial statements has been restated to reflect the new guidance as follows:
With the implementation of GASB Statement No. 75, the City is required to retroactively record the total OPEB liability.
- 78 -
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Total OPEB Liability and Related Ratios
Other Postemployment Benefit Plan
Last Fiscal Year
MEASUREMENT DATE DECEMBER 31, 2018
TOTAL OPEB LIABILITY
Service cost 1,050,028$
Interest 630,168
Changes in assumptions (1,272,525)
Implicit benefit payments (797,159)
Other changes -
Net change in total OPEB liability (389,488)
Total OPEB liability - beginning 18,717,414
TOTAL OPEB LIABILITY - ENDING 18,327,926$
Covered payroll 59,333,084$
Employer's total OPEB liability
as a percentage of covered payroll 30.89%
There was a change in assumptions related to the discount rate and mortality rate assumptions in 2018.
Ultimately,this schedule should present information for the last ten years.However,until ten years of
information can be compiled, information will be presented for as many years as is available.
(See independent auditor's report.)
- 79 -
CITY OF EVANSTON, ILLINOIS
Schedule of Employer Contributions
Illinois Municipal Retirement Fund
Last Four Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2015 2016 2017 2018
Actuarially determined contribution 3,977,718$ 3,882,629$ 3,695,564$ 3,628,058$
Contributions in relation to the actuarially
determined contribution 4,018,268 3,963,856 3,702,271 3,628,058
Contribution Deficiency (Excess)(40,550)$ (81,227)$ (6,707)$ -$
Percentage contributed 101.0%102.1%100.2%100.0%
Covered payroll 37,703,487$ 37,477,116$ 37,480,368$ 38,569,254$
Contributions as a percentage of
covered payroll 10.7%10.6%9.9%9.4%
Notes to the Required Supplemental Information
The information presented was determined as part of the actuarial valuations as of January 1 of the prior fiscal year.
Additional information as of the latest actuarial valuation presented is as follows:the actuarial cost method was entry-
age normal;the amortization method was level percent of pay,closed and the amortization period was 26 years;the
asset valuation method was market;and the significant actuarial assumptions were an investment rate of return at
7.50%annually,projected salary increases assumption of 3.75%to 14.50%annually,and postretirement benefit
increases of 3.00% compounded annually.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can
be compiled, information will be presented for as many years as is available.
(See independent auditor's report.)
- 80 -
CITY OF EVANSTON, ILLINOIS
Schedule of Employer Contributions
Police Pension Fund
Last Five Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018
Actuarially determined contribution 8,358,924$ 8,257,475$ 9,380,940$ 10,237,200$ 10,462,704$
Contributions in relation to the actuarially
determined contribution 8,644,196 8,804,264 9,450,824 10,300,549 10,462,704
Contribution Deficiency (Excess)(285,272)$ (546,789)$ (69,884)$ (63,349)$ -$
Percentage contributed 103.4%106.6%100.7%100.6%100.0%
Covered payroll 13,537,726$ 14,921,328$ 17,474,672$ 15,352,846$ 15,845,701$
Contributions as a percentage of
covered payroll 63.9%59.0%54.1%67.1%66.0%
Notes to the Required Supplemental Information
The information presented was determined as part of the actuarial valuations as of January 1.Additional information as of the latest
actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was level percent of
pay,closed and the amortization period was 24 years;the asset valuation method was market and the significant actuarial assumptions
were an investment rate of return at 6.50%annually,projected salary increases assumption of 3.62%to 7.36%annually and
postretirement benefit increases of 3.00% compounded annually.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,
information will be presented for as many years as is available.
(See independent auditor's report.)
- 81 -
CITY OF EVANSTON, ILLINOIS
Schedule of Employer Contributions
Firefighters' Pension Fund
Last Five Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018
Actuarially determined contribution 6,239,481$ 5,903,483$ 7,350,865$ 8,148,709$ 8,344,947$
Contributions in relation to the actuarially
determined contribution 6,527,697 6,385,244 7,396,641 8,205,800 8,344,947
Contribution Deficiency (Excess)(288,216)$ (481,761)$ (45,776)$ (57,091)$ -$
Percentage contributed 104.6%108.2%100.6%100.7%100.0%
Covered payroll 9,520,925$ 10,396,357$ 10,546,779$ 10,311,920$ 11,618,255$
Contributions as a percentage of
covered payroll 68.6%61.4%70.1%79.6%71.8%
Notes to the Required Supplemental Information
The information presented was determined as part of the actuarial valuations as of January 1.Additional information as of the latest actuarial
valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was level percent of pay,closed
and the amortization period was 24 years;the asset valuation method was market;and the significant actuarial assumptions were an
investment rate of return at 6.50%annually,projected salary increases assumption of 3.62%to 7.36%annually and postretirement benefit
increases of 3.00% compounded annually.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,
information will be presented for as many years as is available.
(See independent auditor's report.)
- 82 -
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Illinois Municipal Retirement Fund
Last Four Fiscal Years
MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017
Total Pension Liability
Service cost 3,898,440$ 3,910,996$ 3,951,687$ 3,970,214$
Interest 14,880,724 16,235,086 16,947,408 17,355,320
Changes in benefit terms - - - -
Differences between expected and actual experience 3,043,895 1,465,442 (2,905,680) (2,489,328)
Changes of assumptions 7,927,038 266,906 (269,039) (7,652,648)
Benefit payments, including refunds of member contributions (11,468,097) (11,928,345) (12,270,564) (12,922,439)
Net Change in Total Pension Liability 18,282,000 9,950,085 5,453,812 (1,738,881)
Total Pension Liability - Beginning 202,194,485 220,476,485 230,426,570 235,880,382
Total Pension Liability - Ending 220,476,485$ 230,426,570$ 235,880,382$ 234,141,501$
Plan Fiduciary Net Position
Contributions - employer 3,963,983$ 4,018,268$ 3,963,856$ 3,702,271$
Contributions - member 1,710,168 1,767,523 1,705,636 1,693,912
Net investment income 12,425,190 1,062,353 14,441,739 39,438,193
Benefit payments, including refunds of member contributions (11,468,097) (11,928,345) (12,270,564) (12,922,439)
Administrative expense 2,322,043 737,427 (142,981) (4,817,948)
Net Change in Plan Fiduciary Net Position 8,953,287 (4,342,774) 7,697,686 27,093,989
Plan Fiduciary Net Position - Beginning 206,588,617 215,541,904 211,199,130 218,896,816
Plan Fiduciary Net Position - Ending 215,541,904$ 211,199,130$ 218,896,816$ 245,990,805$
Employer's Net Pension Liability (Asset)4,934,581$ 19,227,440$ 16,983,566$ (11,849,304)$
Plan fiduciary net position as a percentage of the total pension liability (asset)97.76%91.66%92.80%105.06%
Covered payroll 35,171,426$ 37,703,487$ 37,477,116$ 37,480,368$
Employer's net pension liability as a percentage of covered payroll 14.03%51.00%45.32%-31.61%
There were changes in assumptions related to price inflation,salary increases,retirement age and mortality rates in 2017.There was a change in
assumption related to the discount rate made since the prior measurement date.The discount rate used in the actuarial valuation dated December 31,
2016,is 7.50%.The discount rate used in the prior actuarial valuations,dated December 31,2015 and December 31,2014 was 7.49%and 7.50%,
respectively.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information
should be presented for as many years as is available.
(See independent auditor's report.)
- 83 -
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Police Pension Fund
Last Five Fiscal Years
MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018
Total Pension Liability
Service cost 3,439,223$ 3,488,385$ 3,679,212$ 3,993,751$ 4,285,425$
Interest 12,284,036 12,663,010 13,192,680 14,088,889 14,433,770
Changes in benefit terms - - - - -
Differences between expected and actual experience - 3,928,479 (3,214,201) 424,390 3,079,328
Changes of assumptions - 5,791,392 11,039,027 7,096,300 (7,459,427)
Benefit payments, including refunds of member contributions (9,891,045) (10,424,955) (10,970,916) (11,475,943) (11,937,685)
Net Change in Total Pension Liability 5,832,214 15,446,311 13,725,802 14,127,387 2,401,411
Total Pension Liability - Beginning 183,492,025 189,324,239 204,770,550 218,496,352 232,623,739
Total Pension Liability - Ending 189,324,239$ 204,770,550$ 218,496,352$ 232,623,739$ 235,025,150$
Plan Fiduciary Net Position
Contributions - employer 8,644,196$ 8,804,264$ 9,450,824$ 10,300,549$ 10,462,704$
Contributions - member 1,565,053 1,454,720 1,731,740 1,521,467 1,570,309
Net investment income 8,675,133 430,756 7,544,856 15,240,680 (4,911,053)
Benefit payments, including refunds of member contributions (9,891,045) (10,424,955) (10,970,916) (11,475,943) (11,937,685)
Administrative expense (68,938) (71,408) (123,796) (148,631) (58,885)
Net Change in Plan Fiduciary Net Position 8,924,399 193,377 7,632,708 15,438,122 (4,874,610)
Plan Fiduciary Net Position - Beginning 90,763,143 99,687,542 98,558,837 106,191,545 121,629,667
Prior period adjustment - (1,322,082) - - -
Plan Fiduciary Net Position - Beginning, restated 90,763,143 98,365,460 98,558,837 106,191,545 121,629,667
Plan Fiduciary Net Position - Ending 99,687,542$ 98,558,837$ 106,191,545$ 121,629,667$ 116,755,057$
Employer's Net Pension Liability 89,636,697$ 106,211,713$ 112,304,807$ 110,994,072$ 118,270,093$
Plan fiduciary net position as a percentage of the total pension liability 52.65%48.13%48.60%52.29%49.68%
Covered payroll 13,537,726$ 14,921,328$ 17,474,672$ 15,352,846$ 15,845,701$
Employer's net pension liability as a percentage of covered payroll 662.13%711.81%642.67%722.95%746.39%
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information should be
presented for as many years as is available.
For the measurement date December 31,2018,there were changes in assumptions related to the mortality tables.Additionally,the discount rate was increased to
6.50%.
The discount rate used in the valuation dated December 31,2017 is 6.25%.The discount rate used in the prior actuarial valuation,dated December 31,2015,is
6.50%. The discount rate used in the valuation dated, dated December 31, 2014 was 6.75%.
(See independent auditor's report.)
- 84 -
CITY OF EVANSTON, ILLINOIS
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Firefighters' Pension Fund
Last Five Fiscal Years
MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018
Total Pension Liability
Service cost 2,326,092$ 2,431,680$ 2,731,257$ 2,813,961$ 3,026,223$
Interest 9,391,253 9,656,198 9,922,911 10,507,435 10,741,734
Changes in benefit terms - - - - -
Differences between expected and actual experience - 1,184,609 (3,239,221) 368,761 384,928
Changes of assumptions - 4,239,272 7,971,672 5,192,584 (6,192,362)
Benefit payments, including refunds of member contributions (7,727,683) (8,067,965) (8,343,940) (8,609,369) (9,150,830)
Net Change in Total Pension Liability 3,989,662 9,443,794 9,042,679 10,273,372 (1,190,307)
Total Pension Liability - Beginning 140,667,430 144,657,092 154,100,886 163,143,565 173,416,937
Total Pension Liability - Ending 144,657,092$ 154,100,886$ 163,143,565$ 173,416,937$ 172,226,630$
Plan Fiduciary Net Position
Contributions - employer 6,527,697$ 6,385,244$ 7,396,641$ 8,205,800$ 8,344,947$
Contributions - member 919,874 956,092 997,198 974,992 1,098,506
Net investment income 3,549,131 228,236 3,894,765 7,974,296 (3,478,827)
Benefit payments, including refunds of member contributions (7,727,683) (8,067,965) (8,343,940) (8,609,369) (9,150,830)
Administrative expense (52,248) (44,597) (85,750) (72,640) (105,755)
Net Change in Plan Fiduciary Net Position 3,216,771 (542,990) 3,858,914 8,473,079 (3,291,959)
Plan Fiduciary Net Position - Beginning 65,024,941 68,241,712 66,741,084 70,599,998 79,073,077
Prior period adjustment - (957,638) - - -
Plan Fiduciary Net Position - Beginning, restated 65,024,941 67,284,074 66,741,084 70,599,998 79,073,077
Plan Fiduciary Net Position - Ending 68,241,712$ 66,741,084$ 70,599,998$ 79,073,077$ 75,781,118$
Employer's Net Pension Liability 76,415,380$ 87,359,802$ 92,543,567$ 94,343,860$ 96,445,512$
Plan fiduciary net position as a percentage of the total pension liability 47.17%43.31%43.27%45.60%44.00%
Covered payroll 9,520,925$ 10,396,357$ 10,546,779$ 10,311,920$ 11,618,255$
Employer's net pension liability as a percentage of covered payroll 802.60%840.29%877.46%914.90%830.12%
For the measurement date December 31,2018,there were changes in assumptions related to the mortality tables.Additionally,the discount rate was increased to
6.50%.
The discount rate used in the valuation dated December 31,2017 is 6.25%.The discount rate used in the prior actuarial valuation,dated December 31,2015,is
6.50%. The discount rate used in the actuarial valuation dated December 31, 2014 was 6.75%.
Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information should be
presented for as many years as is available.
(See independent auditor's report.)
- 85 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original Final
Budget Budget Actual Variance
Revenues
Taxes 60,889,084$ 60,889,084$ 60,830,670$ (58,414)$
Licenses and permits 12,396,900 12,396,900 11,663,823 (733,077)
Intergovernmental 18,133,986 18,133,986 19,045,016 911,030
Charges for services 10,169,550 10,169,550 9,993,411 (176,139)
Fines 3,850,500 3,850,500 3,765,058 (85,442)
Investment income 50,100 50,100 94,929 44,829
Miscellaneous 1,332,217 1,332,217 2,536,638 1,204,421
Total Revenues 106,822,337 106,822,337 107,929,545 1,107,208
Expenditures
General management and support 16,232,057 16,232,057 16,101,597 (130,460)
Public safety 62,211,699 62,211,699 64,252,245 2,040,546
Public works 13,700,658 13,700,658 12,616,790 (1,083,868)
Health and human services development 3,654,015 3,654,015 3,141,991 (512,024)
Recreation and cultural opportunities 11,844,488 11,844,488 12,789,472 944,984
Housing and economic development 3,222,368 3,222,368 3,260,808 38,440
Total Expenditures 110,865,285 110,865,285 112,162,903 1,297,618
Excess (Deficiency) of Revenues
Over Expenditures (4,042,948) (4,042,948) (4,233,358) (190,410)
Other Financing Sources (Uses)
Transfers in 8,846,888 8,846,888 8,133,142 (713,746)
Transfers (out)(4,231,664) (4,231,664) (3,392,418) 839,246
Total Other Financing Sources (Uses)4,615,224 4,615,224 4,740,724 125,500
Net Change in Fund Balance 572,276$ 572,276$ 507,366 (64,910)$
Fund Balances
Beginning of Year 13,347,682
End of Year 13,855,048$
(See independent auditor's report.)
- 86 -
CITY OF EVANSTON, ILLINOIS
Schedule of Investment Returns
Police Pension Fund
Last Five Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018
Annual money-weighted rate of return,
net of investment expense 9.54%1.45%6.90%14.25%-5.20%
Ultimately,this schedule should present return information for the last ten years.However,until ten years of
information can be compiled, return information should be presented for as many years as is available.
(See independent auditor's report.)
- 87 -
CITY OF EVANSTON, ILLINOIS
Schedule of Investment Returns
Firefighters' Pension Fund
Last Five Fiscal Years
FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018
Annual money-weighted rate of return,
net of investment expense 5.47%0.36%5.90%11.42%-4.54%
Ultimately,this schedule should present return information for the last ten years.However,until ten years of
information can be compiled, return information should be presented for as many years as is available.
(See independent auditor's report.)
- 88 -
CITY OF EVANSTON, ILLINOIS
Notes to Required Supplementary Information
December 31, 2018
Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1.
2.Public budget hearings are conducted. Taxpayer comments are received and noted.
3.The budget is legally enacted through passage of a resolution.
4.
5.
Discrete Component Unit:
1.
2.
3.
4.
5.
Fund Actual Budget Variance
General $ 111,827,164 $ 110,865,285 $ 961,879
General Obligation Debt Service 21,833,969 14,297,247 7,536,722
Community Development Block Grant Fund 1,519,413 1,492,019 27,394
Good Neighbor 932,718 930,000 2,718
Crown Capital 9,760,996 9,634,000 126,996
Special Assessment Capital Projects 379,027 71,790 307,237
West Evanston TIF Fund 24,049 10,000 14,049
Special Service District No. 6 222,086 221,500 586
Library Operating Fund 7,191,513 7,119,673 71,840
A series of public library board meetings are conducted as the EPL Board of Trustees considers the
budget proposal. Taxpayer comments are received and noted.
Because of a calendar year,the City Manager will submit to the City Council a proposed operating
budget for the upcoming fiscal year commencing January 1,2018.The operating budget includes
proposed expenditures and the means of financing them.
The City Manager is authorized to transfer budgeted amounts between departments within any fund;
however,any revisions that alter the total expenditures of any fund must be approved by the City
Council. There were budget allocations within General Fund.
Budgets are legally adopted on a basis consistent with GAAP.Annual appropriated budgets are adopted
for the General,Special Revenue,Debt Service,Capital Projects,Enterprise,and Internal Service Funds,
and Pension Trust Funds. All annual budgets lapse at fiscal year end.
The Library follows these procedures in establishing the budgetary data reflected in the financial statements:
Because of a calendar year,the Library Director submits a proposed operating budget for the upcoming
fiscal year commencing January 1,2018 to the EPL Board of Trustees.Upon approval of the budget
proposal by the EPL Board of Trustees,the Library’s proposed budget is submitted to the City Manager.
The Library's budget is included in the budget documents which the City Manager will submit to the City
Council. The operating budget includes proposed expenditures and the means of financing them.
The following funds had an excess of actual budgetary expenditures over original and final budget for the fiscal year
ended December 31, 2018:
The budget is legally enacted through passage of a resolution by the City Council.
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.The budget is prepared for the Library
Operating Fund.
The level of control (level at which expenditures may not exceed budget)is the fund.All unencumbered annual
appropriations lapse at the end of the fiscal year.
- 89 -
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
General Fund - to account for all financial resources of the City except those accounted for in
another fund.
General Obligation Debt Fund - to account for non-abated, general obligation payments on the
principal and interest related to bonds and/or other city debt.
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues
Taxes
Property
Current year levy 28,849,196$ 28,849,196$ 28,188,353$ (660,843)$
Total Property Taxes 28,849,196 28,849,196 28,188,353 (660,843)
Personal Property Replacement Tax 1,451,300 1,451,300 1,350,173 (101,127)
Other Taxes
State use tax 1,775,000 1,775,000 2,188,062 413,062
Sales tax - home rule 6,413,588 6,413,588 6,407,406 (6,182)
Auto rental tax 55,000 55,000 57,348 2,348
Transportation network provider tax 100,000 100,000 492,185 392,185
Athletic contest tax 1,080,000 1,080,000 1,166,760 86,760
Municipal hotel tax 2,390,000 2,390,000 2,134,163 (255,837)
Utility tax 7,375,000 7,375,000 6,667,199 (707,801)
Cigarette tax 200,000 200,000 301,632 101,632
Evanston motor fuel tax 1,015,000 1,015,000 1,328,346 313,346
Medical Cannabis tax - - 1,824 1,824
Liquor tax 3,120,000 3,120,000 3,211,772 91,772
Parking tax 3,450,000 3,450,000 2,983,168 (466,832)
Amusement tax 315,000 315,000 339,479 24,479
Foreign fire tax - - 206,999 206,999
Real estate transfer tax 3,300,000 3,300,000 3,805,801 505,801
Total Other Taxes 30,588,588 30,588,588 31,292,144 703,556
Total Taxes 60,889,084 60,889,084 60,830,670 (58,414)
Licenses and Permits
Vehicle licenses 2,850,000 2,850,000 2,497,865 (352,135)
Business licenses 50,000 50,000 101,678 51,678
Bed and breakfast licenses 150 150 115 (35)
Collection box license 2,500 2,500 3,000 500
Pet licenses 28,000 28,000 13,424 (14,576)
Contractor licenses 170,000 170,000 184,482 14,482
Rooming house licenses 225,000 225,000 136,337 (88,663)
Liquor licenses 525,000 525,000 543,111 18,111
One-day liquor licenses 12,000 12,000 15,546 3,546
Farmer's market licenses 51,250 51,250 53,735 2,485
Rental building register 85,000 85,000 113,951 28,951
Other licenses 20,000 20,000 13,588 (6,412)
Long-term care license 120,000 120,000 83,040 (36,960)
Seasonal foot ESTB 15,000 15,000 12,373 (2,627)
Mobile food vehicle license 1,000 1,000 1,402 402
Hen coop license 800 800 1,050 250
Resident care home license 1,200 1,200 1,160 (40)
Building permits 4,585,900 4,585,900 4,557,147 (28,753)
Plumbing permits 180,000 180,000 191,394 11,394
Electrical permits 200,000 200,000 136,895 (63,105)
Signs and awnings 10,000 10,000 7,655 (2,345)
Other/miscellaneous permits 513,000 513,000 488,285 (24,715)
Elevator permits 42,000 42,000 44,162 2,162
Heating vent/AC permits 450,000 450,000 312,740 (137,260)
Right of way permits 450,000 450,000 478,177 28,177
(This schedule is continued on the following pages.)
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CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues - Continued
Licenses and Permits - Continued
Property cleaning permit 10,000$ 10,000$ 230$ (9,770)$
Residents parking permit 128,000 128,000 79,596 (48,404)
Visitor parking permit 13,000 13,000 12,094 (906)
Fire suppression/alarm permit 110,000 110,000 61,817 (48,183)
Oversize truck permit - - 36,625 36,625
Annual sign fees 25,000 25,000 30,693 5,693
Moving van permit 50,000 50,000 36,745 (13,255)
Plat PR. and Sign approval HRG fees 2,100 2,100 59,794 57,694
IL Bell franchise fee - - 178,073 178,073
Alarm panel franchise fee 4,000 4,000 225 (3,775)
Northwestern University easement 47,000 47,000 47,000 -
Cable franchise fee 1,200,000 1,200,000 987,559 (212,441)
PEG fees - Comcast 145,000 145,000 101,298 (43,702)
Nicor franchise fee 75,000 75,000 39,762 (35,238)
Total Licenses and Permits 12,396,900 12,396,900 11,663,823 (733,077)
Intergovernmental - Revenue from Other Agencies
Retailer and service occupation tax 10,542,386 10,542,386 10,555,251 12,865
State income tax 7,000,000 7,000,000 7,185,203 185,203
State highway maintenance 68,000 68,000 76,407 8,407
Health Department Basic Service Grant 76,000 76,000 82,070 6,070
Summer food inspections 200 200 - (200)
Illinois tobacco free community 26,000 26,000 28,366 2,366
IL HIV Surveillance Grant 4,000 4,000 4,692 692
Childhood Lead Poisoning Grant 2,000 2,000 12,600 10,600
Other State/County Grant 57,000 57,000 363,416 306,416
Tanning parlor inspection 300 300 - (300)
Fire Department training 6,000 6,000 1,768 (4,232)
CRI Grant 14,100 14,100 33,200 19,100
PEHP Grant 30,000 30,000 52,655 22,655
Federal Grant/Aid 8,000 8,000 191,266 183,266
Commission on Aging Grant - Advocate 95,000 95,000 88,097 (6,903)
Vacant Property Grant - - 18,771 18,771
Civil Defense Grants (F.E.M.A.)- - 60,498 60,498
Narcotics enforcement revenue - - 31,229 31,229
Police training 5,000 5,000 3,275 (1,725)
Police DUI Reimbursement 15,000 15,000 15,500 500
HUD Emergency Shelter Grant 135,000 135,000 210,752 75,752
Other Federal Aid 10,000 10,000 - (10,000)
Youth Organization Umbrella Grant 40,000 40,000 30,000 (10,000)
Total Intergovernmental - Revenue from Other Agencies 18,133,986 18,133,986 19,045,016 911,030
Charges for Services
Recreation
Recreation - program 5,882,750 5,882,750 5,851,977 (30,773)
Recreation - other - - 60 60
Recreation - charges 3,000 3,000 196 (2,804)
Recreation - special events 25,500 25,500 23,912 (1,588)
Total Recreation Revenue 5,911,250 5,911,250 5,876,145 (35,105)
(This schedule is continued on the following pages.)
- 91 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues - Continued
Charges for Services (Continued)
Other Charges for Services
Health Clinic Fees - food establishment 200,000$ 200,000$ 231,125$ 31,125$
Sanitation classes - - 1,000 1,000
Temporary license fee 10,000 10,000 10,502 502
Food delivery vehicle 5,000 5,000 6,529 1,529
Beverage snack vending machine 31,000 31,000 50,746 19,746
Tobacco license 17,000 17,000 16,000 (1,000)
Beekeeper license - - 150 150
Birth and death records - - - -
Birth certificate 110,000 110,000 94,167 (15,833)
Death certificate 36,000 36,000 21,523 (14,477)
Funeral director license 6,300 6,300 4,290 (2,010)
Temp funeral director licenses 4,000 4,000 270 (3,730)
Parking meter fee increase 1,340,000 1,340,000 1,340,000 -
Surface lot permits 160,000 160,000 - (160,000)
Parking enforcement Reimbursement 33,500 33,500 54,182 20,682
Weights and exact measures examinations - - - -
Senior Taxi coupon sales 115,000 115,000 107,604 (7,396)
Fire cost recovery charge 1,000 1,000 1,640 640
Historic preservation 20,000 20,000 43,282 23,282
Tree preservation revenue 10,000 10,000 80,293 70,293
Ambulance service 1,750,000 1,750,000 1,607,716 (142,284)
Towing charges 1,000 1,000 - (1,000)
Police report fees 25,000 25,000 23,528 (1,472)
Wood recycling 40,000 40,000 - (40,000)
Zoning fees 75,000 75,000 104,725 29,725
Fire building inspections 100 100 - (100)
Fire report fee 13,000 13,000 16,800 3,800
Passport processing Fee 35,000 35,000 22,159 (12,841)
Alarm panel subscription fees 125,000 125,000 173,873 48,873
Skokie animal board fee - - - -
Background check daycare providers 400 400 510 110
New pavement degradation 80,000 80,000 93,885 13,885
I Heart Evanston Trees project 10,000 10,000 5,895 (4,105)
Plan review 5,000 5,000 4,872 (128)
Total Other Service Charges 4,258,300 4,258,300 4,117,266 (141,034)
Total Charges for Services 10,169,550 10,169,550 9,993,411 (176,139)
Fines
Ticket fines - parking 2,850,000 2,850,000 2,814,941 (35,059)
Regular fines 115,000 115,000 118,820 3,820
Building code violations - - 275 275
Animal ordinance penalties 7,500 7,500 2,770 (4,730)
Boot release fee 45,000 45,000 43,639 (1,361)
Fire false alarm fines 115,000 115,000 84,950 (30,050)
Police CTA detail 400,000 400,000 417,955 17,955
Police false alarm fines - - 53,485 53,485
Housing code violation fines 60,000 60,000 36,658 (23,342)
Permit penalty fees 8,000 8,000 6,637 (1,363)
Administrative adjudication fee 250,000 250,000 184,928 (65,072)
Total Fines 3,850,500 3,850,500 3,765,058 (85,442)
(This schedule is continued on the following page.)
- 92 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Variance with
Final Budget
Original Final Over
Budget Budget Actual (Under)
Revenues - Continued
Investment Income 50,100$ 50,100$ 94,929$ 44,829$
Other Revenues
Police equipment reimbursement 10,000 10,000 3,631 (6,369)
Aging well revenue - - 3,210 3,210
Holiday food drive 10,000 10,000 - (10,000)
Women Out Walking 5,000 5,000 4,815 (185)
Property sales and rentals 51,100 51,100 544,729 493,629
Donation 30,400 30,400 50,769 20,369
Damage to City signage 2,000 2,000 - (2,000)
Damage to City traffic signal 20,000 20,000 - (20,000)
Damage to street lights 10,000 10,000 - (10,000)
Miscellaneous revenue 342,717 342,717 742,913 400,196
Market Link vouchers 30,000 30,000 24,171 (5,829)
Sale of other assets 71,500 71,500 5,631 (65,869)
Reimbursements - serve and protect 4,000 4,000 45,534 41,534
Reimbursements - sale use 75,000 75,000 39,975 (35,025)
Reimbursements - fire department 75,000 75,000 68,263 (6,737)
Reimbursements - police - - 326,639 326,639
Payment in lieu of taxes 267,000 267,000 211,500 (55,500)
Fund balance applied 266,000 266,000 - (266,000)
Chargeback revenue - - 392,371 392,371
Private Elm Trees Insurance 41,000 41,000 32,510 (8,490)
Citizens CPR class fees 6,500 6,500 12,340 5,840
Parking permits - Ryan Field 15,000 15,000 27,637 12,637
Total Other Revenues 1,332,217 1,332,217 2,536,638 1,204,421
Total Revenues 106,822,337$ 106,822,337$ 107,929,545$ 1,107,208$
(See independent auditor's report.)
- 93 -
CITY OF EVANSTON, ILLINOIS
General Fund
Schedule of Expenditures - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original Final
Budget Budget Actual Variance
Expenditures
General Management and Support
City Council 490,445$ 490,445$ 544,989$ 54,544$
City Manager and Budget Management 5,889,769 5,889,769 5,580,852 (308,917)
City Clerk 187,725 187,725 213,928 26,203
Law Department 716,875 716,875 669,257 (47,618)
Administrative Services 8,947,243 8,947,243 9,092,571 145,328
Total General Management and Support 16,232,057 16,232,057 16,101,597 (130,460)
Public Safety
Police 38,283,535 38,283,535 39,301,492 1,017,957
Fire 23,928,164 23,928,164 24,950,753 1,022,589
Total Public Safety 62,211,699 62,211,699 64,252,245 2,040,546
Public Works
Public Works Director 3,788,163 3,788,163 3,897,712 109,549
Municipal Service Center 1,907,778 1,907,778 1,813,873 (93,905)
City Engineer 288,396 288,396 242,087 (46,309)
Traffic Engineer 3,863,402 3,863,402 3,388,875 (474,527)
Streets 3,620,142 3,620,142 3,114,174 (505,968)
Sanitation 232,777 232,777 160,069 (72,708)
Total Public Works 13,700,658 13,700,658 12,616,790 (1,083,868)
Health and Human Services Development
Health and Human Services Director 323,891 323,891 507,129 183,238
Health Department 1,762,345 1,762,345 1,584,344 (178,001)
Mental Health and Community Purchased Services 708,626 708,626 223,571 (485,055)
Human Relations 859,153 859,153 826,947 (32,206)
Total Health and Human Services Development 3,654,015 3,654,015 3,141,991 (512,024)
Recreation and Cultural Opportunities
Recreation 10,654,704 10,654,704 11,666,191 1,011,487
Ecology Center 520,581 520,581 491,793 (28,788)
Cultural Arts 669,203 669,203 631,488 (37,715)
Total Recreation and Cultural Opportunities 11,844,488 11,844,488 12,789,472 944,984
Housing and Economic Development
Community Development Administration 947,844 947,844 980,583 32,739
Planning and Zoning 702,197 702,197 648,272 (53,925)
Housing Rehabilitation and Property Standards - - - -
Building Code Compliance 1,572,327 1,572,327 1,631,953 59,626
Total Housing and Economic Development 3,222,368 3,222,368 3,260,808 38,440
Total Expenditures 110,865,285$ 110,865,285$ 112,162,903$ 1,297,618$
(See independent auditor's report.)
- 94 -
CITY OF EVANSTON, ILLINOIS
General Obligation Debt Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual
Taxes
Property taxes
Current year levy, net 10,879,993$ 10,695,993$
Prior year levy, net - (175,540)
Investment income 1,500 159,324
Miscellaneous Revenue - 86,624
Total Revenues 10,881,493 10,766,401
General management and support - 58,325
Debt Service
Principal 10,346,234 17,257,414
Interest 3,831,023 4,513,330
Fiscal agent fees 120,000 4,900
Total Expenditures 14,297,257 21,833,969
Excess (Deficiency) of Revenues
Over Expenditures (3,415,764) (11,067,568)
Issuance of bonds - 6,385,676
Premium on bond issuances - 720,765
Transfers in 3,544,113 4,137,327
Total Other Financing Sources (Uses)3,544,113 11,243,768
Net Changes in Fund Balances 128,349$ 176,200
Fund Balances
Beginning of Year 241,781
End of Year 417,981$
Revenues
Expenditures
Other Financing Sources (Uses)
(See independent auditor's report.)
- 95 -
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures
for a particular purpose.
Motor Fuel Tax - to account for the operation of street maintenance programs and capital projects as
authorized by the Illinois Department of Transportation. Financing is provided by the City’s share of
gasoline taxes.
Emergency Telephone System - to account for revenues and expenditures for 911 emergency telephone
service. Financing provided by network connection surcharges.
Neighborhood Improvement - to account for a portion of the sales tax revenues derived from retail sales
of the Home Depot U.S.A. Inc. store in the City. Sales tax revenues allocated to this fund are to be
expended on public projects that will benefit the immediate neighborhood of the store.
Affordable Housing - to account for costs associated with housing-related programs of the City.
HOME - to account for the activity of the HOME program. Financing is provided by the federal
government. Expenditures are made in accordance with the requirements of federal law.
Community Development Block Grant - to account for revenues and expenditures of the Community
Block Grant program. Financing is provided by the federal government on a reimbursement basis in
accordance with federal formula. Expenditures are made in accordance with the requirements of federal
law.
Community Development Loan - to account for residential rehabilitation loans to residents.
Neighborhood Stabilization Program 2 - funded by the American Recovery and Reinvestment Act of
2009 to stabilize neighborhoods that have been negatively impacted by high numbers of foreclosed and
vacant homes.
Special Service District No. 4 - to account for promotion, advertisement, and street maintenance costs of
the area located in the City’s central business district. Financing is provided by the City through an annual
property tax levy.
Good Neighbor - to account for the resources provided by Northwestern University to assist city functions
and increase programming.
General Assistance - to account for the assistance given to persons and/or families to meet their basic
living expenses.
Debt Service Funds
Debt Service Funds are used to account for the servicing of general long-term debt.
Chicago Main TIF - To account for principal and interest payments on debt proceeds issued and allocated
to this tax increment financing district.
Special Service Area No. 6 Fund - to account for promotion, advertisement, and street maintenance costs
of the area located in the City's commercial district surrounding Dempster, Chicago, and Main. Financing
is provided by the City through an annual special service area property tax levy.
Washington National TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Dempster-Dodge TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Howard/Ridge TIF- To account for principal and interest payments on debt proceeds issued and allocated
to this tax increment financing district.
West Evanston TIF - To account for principal and interest payments on debt proceeds issued and
allocated to this tax increment financing district.
Capital Projects Funds
Capital Improvement - To account for capital projects not funded through special revenue, tax increment
financing, or enterprise funds. Capital projects include, but are not limited to: long-term improvements to
public buildings, the paving of city streets, and the improvement and development of recreation facilities.
Financing is provided primarily by grants and general obligation bond proceeds.
Special Assessment - To account for capital improvements (primarily alley paving) financed by both
special assessments on property owners and City contributions.
Crown Capital - To account for capital improvements (primarily alley paving) financed by both special
assessments on property owners and city contributions.
CITY OF EVANSTON, ILLINOIS
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Emergency
Motor Fuel Telephone Neighborhood Affordable
Tax System Improvement Housing
Cash and equivalents -$ -$ 170,992$ 1,105,945$
Investments 2,079,106 669,075 - 377,064
Receivables
Property tax - - - -
Loans - - - 1,148,109
Special assessments - - - -
Other - - - -
Due from other governments 161,781 290,203 - -
Due from other funds - - 82 -
Advances to other funds - - - -
Total Assets 2,240,887$ 959,278$ 171,074$ 2,631,118$
Liabilities
Vouchers payable -$ 11,884$ -$ 16,326$
Due to other governments - - - 98,654
Due to component unit - - - -
Due to other funds 204,833 185,329 - 2,874
Advances from other funds - - - -
Unearned revenue - - - -
Total Liabilities 204,833 197,213 - 117,854
Deferred Inflows of Resources
Long-term notes receivable - - - 1,148,109
Unavailable revenue - property taxes - - - -
Total Deferred Inflows of Resources - - - 1,148,109
Total Liabilities and Deferred Inflows of Resources 204,833 197,213 - 1,265,963
Fund Balances
Restricted for
Highway Maintenance 2,036,054 - - -
Emergency Telephone System - 762,065 - -
HUD Approved Projects - - - -
Neighborhood Improvements - - 171,074 1,365,155
Debt Service - - - -
Township - - - -
Capital Improvements - - - -
Committed - - - -
Assigned - - - -
Unassigned (deficit)- - - -
Total Fund Balances (Deficit)2,036,054 762,065 171,074 1,365,155
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 2,240,887$ 959,278$ 171,074$ 2,631,118$
Assets
Special Revenue
- 96 -
Special
Community Community Service Total
Development Development District Good General Special
HOME Block Grant Loan No. 4 Neighbor Assistance Revenue
11,246$ 16,923$ 222,199$ -$ 1,087,579$ 595,640$ 3,210,524$
- - - - - 15,233 3,140,478
- - - 525,000 - 900,000 1,425,000
5,034,702 196,352 1,907,988 - - - 8,287,151
- - - - - - -
- - - - - - -
68,802 194,971 - - - - 715,757
- - - - - - 82
- - - - - - -
5,114,750$ 408,246$ 2,130,187$ 525,000$ 1,087,579$ 1,510,873$ 16,778,992$
71,120$ 59,300$ 48,705$ -$ -$ 474$ 207,809$
- - - - - - 98,654
- - - - - - -
1,604 89,241 300 226,836 82,977 8,705 802,699
- - - - - - -
- - - - 1,000,000 - 1,000,000
72,724 148,541 49,005 226,836 1,082,977 9,179 2,109,162
5,034,702 196,352 1,907,988 - - - 8,287,151
- - - 525,000 - 900,000 1,425,000
5,034,702 196,352 1,907,988 525,000 - 900,000 9,712,151
5,107,426 344,893 1,956,993 751,836 1,082,977 909,179 11,821,313
- - - - - - 2,036,054
- - - - - - 762,065
7,324 63,353 173,194 - - - 243,871
- - - - - - 1,536,229
- - - - - - -
- - - - - 601,694 601,694
- - - - - - -
- - - - - - -
- - - - 4,602 - 4,602
- - - (226,836) - - (226,836)
7,324 63,353 173,194 (226,836) 4,602 601,694 4,957,679
5,114,750$ 408,246$ 2,130,187$ 525,000$ 1,087,579$ 1,510,873$ 16,778,992$
Special Revenue
(This schedule is continued on the following pages.)
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CITY OF EVANSTON, ILLINOIS
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2018
Chicago Main Special Washington National Dempster-Dodge
Tax Service Tax Tax
Increment Area Increment Increment
District No. 6 District District
Cash and equivalents 174,197$ 3,099$ -$ 55,130$
Investments - - - -
Receivables
Property tax - 221,000 - -
Loans - - - -
Special assessments - - - -
Other - - - -
Due from other governments - - - -
Due from other funds - - - -
Advances to other funds - - - -
Total Assets 174,197$ 224,099$ -$ 55,130$
Liabilities
Vouchers payable 288$ -$ -$ 288$
Due to other governments - - - -
Due to component unit - - - -
Due to other funds - - - -
Advances from other funds - - - -
Unearned revenue - - - -
Total Liabilities 288 - - 288
Deferred Inflows of Resources
Long-term notes receivable - - - -
Unavailable revenue - property taxes - 221,000 - -
Total Deferred Inflows of Resources - 221,000 - -
Total Liabilities and Deferred Inflows of Resources 288 221,000 - 288
Fund Balances
Restricted for
Highway Maintenance - - - -
Emergency Telephone System - - - -
HUD Approved Projects - - - -
Neighborhood Improvements - 3,099 - -
Debt Service 173,909 - - 54,842
Township - - - -
Capital Improvements - - - -
Committed - - - -
Assigned - - - -
Unassigned (deficit)- - - -
Total Fund Balances (Deficit)173,909 3,099 - 54,842
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 174,197$ 224,099$ -$ 55,130$
Assets
Debt Service
- 98 -
Howard Ridge West Evanston Total
Tax Tax Total Total Nonmajor
Increment Increment Debt Capital Special Crown Capital Governmental
District District Service Improvements Assessment Capital Projects Funds
-$ -$ 232,426$ 8,260,938$ 1,371,220$ 4,989,385$ 14,621,543$ 18,064,493$
2,217,149 621,843 2,838,992 7,036,862 1,241,516 15,090,872 23,369,250 29,348,720
- - 221,000 - - - - 1,646,000
- - - - - - - 8,287,151
- - - - 505,950 - 505,950 505,950
- - - - 4,281 - 4,281 4,281
- - - - - - - 715,757
- - - 141,937 3,787 8,769 154,493 154,575
- - - 1,500,000 - - 1,500,000 1,500,000
2,217,149$ 621,843$ 3,292,418$ 16,939,737$ 3,126,754$ 20,089,026$ 40,155,517$ 60,226,927$
287$ 1,462$ 2,325$ 3,041,336$ -$ 2,563,491$ 5,604,827$ 5,814,961$
- - - - - - - 98,654
- - - - - - - -
- - - 152 15 - 167 802,866
- - - - - - - -
- - - - - - - 1,000,000
287 1,462 2,325 3,041,488 15 2,563,491 5,604,994 7,716,481
- - - - 505,950 - 505,950 8,793,101
- - 221,000 - - - - 1,646,000
- - 221,000 - 505,950 - 505,950 10,439,101
287 1,462 223,325 3,041,488 505,965 2,563,491 6,110,944 18,155,582
- - - - - - - 2,036,054
- - - - - - - 762,065
- - - - - - - 243,871
- - 3,099 - - - - 1,539,328
2,216,862 620,381 3,065,994 - - - - 3,065,994
- - - - - - - 601,694
- - - - - 16,984,674 16,984,674 16,984,674
- - - - - - - -
- - - 13,898,249 2,620,789 540,861 17,059,899 17,064,501
- - - - - - - (226,836)
2,216,862 620,381 3,069,093 13,898,249 2,620,789 17,525,535 34,044,573 42,071,345
2,217,149$ 621,843$ 3,292,418$ 16,939,737$ 3,126,754$ 20,089,026$ 40,155,517$ 60,226,927$
Capital ProjectsDebt Service
(See independent auditor's report.)
- 99 -
CITY OF EVANSTON, ILLINOIS
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended December 31, 2018
Emergency
Motor Fuel Telephone Neighborhood Affordable
Tax System Improvement Housing
Revenues
Taxes -$ 1,478,608$ -$ 58,700$
Special assessments - - - -
Intergovernmental 1,906,519 - - -
Charges for services - - - -
Investment income 47,034 13,504 1,066 14,449
Miscellaneous
Contributions - - - 125,000
Other - 862 - 9,417
Total Revenues 1,953,553 1,492,974 1,066 207,566
Expenditures
Current
General management and support - - - -
Public safety - 839,539 - -
Public works - - - -
Housing and economic development - - 163 318,955
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Fiscal agent fees - - - -
Total Expenditures - 839,539 163 318,955
Excess (Deficiency) of Revenues
Over Expenditures 1,953,553 653,435 903 (111,389)
Other Financing Sources (Uses)
Issuance of bonds - - - -
Issuance of loans - - - -
Premium (discount) on bonds issued - - - -
Transfers in 166,761 - - -
Transfers (out)(2,457,990) (73,366) - -
Total Other Financing Sources (Uses)(2,291,229) (73,366) - -
Net Change in Fund Balances (337,676) 580,069 903 (111,389)
Fund Balances (Deficit), January 1 2,373,730 181,996 170,171 1,476,544
Fund Balances (Deficit), December 31 2,036,054$ 762,065$ 171,074$ 1,365,155$
Special Revenue
- 100 -
Community Community Neighborhood Special Service Total
Development Development Stabilization District Good General Special
HOME Block Grant Loan Program 2 No. 4 Neighbor Assistance Revenue
-$ -$ -$ -$ 341,934$ -$ 913,827$ 2,793,069$
- - - - - - - -
300,423 1,511,105 - 33,844 - - - 3,751,891
- - - - - - - -
5,451 - 5,086 - 24 2,718 10,175 99,507
- - - - - 1,000,000 - 1,125,000
27,477 14,346 114,531 - - - 14,724 181,357
333,351 1,525,451 119,617 33,844 341,958 1,002,718 938,726 7,950,824
- - - - - 70,000 981,531 1,051,531
- - - - - - - 839,539
- - - - - - - -
335,304 1,519,413 199,035 29,196 370,000 - - 2,772,066
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
335,304 1,519,413 199,035 29,196 370,000 70,000 981,531 4,663,136
(1,953) 6,038 (79,418) 4,648 (28,042) 932,718 (42,805) 3,287,688
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - 166,761
- (6,792) - (4,648) - (930,000) - (3,472,796)
- (6,792) - (4,648) - (930,000) - (3,306,035)
(1,953) (754) (79,418) - (28,042) 2,718 (42,805) (18,347)
9,277 64,107 252,612 - (198,794) 1,884 644,499 4,976,026
7,324$ 63,353$ 173,194$ -$ (226,836)$ 4,602$ 601,694$ 4,957,679$
Special Revenue
(This schedule in continued on the following pages.)
- 101 -
CITY OF EVANSTON, ILLINOIS
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended December 31, 2018
Chicago Main Special Washington National Dempster-
Tax Service Tax Dodge Tax
Increment Area Increment Increment
District No. 6 District District
Revenues
Taxes 222,235$ 222,944$ 5,714,572$ 136,927$
Special assessments - - - -
Intergovernmental - - - -
Charges for services - - - -
Investment income 23 34 (9,836) 9
Miscellaneous
Contributions - - - -
Other - - - -
Total Revenues 222,258 222,978 5,704,736 136,936
Expenditures
Current
General management and support - - - -
Public safety - - - -
Public works - - - -
Housing and economic development 1,981 222,086 598,840 1,981
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Fiscal agent fees - - - -
Total Expenditures 1,981 222,086 598,840 1,981
Excess (Deficiency) of Revenues
Over Expenditures 220,277 892 5,105,896 134,955
Other Financing Sources (Uses)
Issuance of bonds - - - -
Issuance of loans - - - -
Premium (discount) on bonds issued - - - -
Transfers in - - - -
Transfers (out)(107,561) - (10,368,440) (74,104)
Total Other Financing Sources (Uses)(107,561) - (10,368,440) (74,104)
Net Change in Fund Balances 112,716 892 (5,262,544) 60,851
Fund Balances (Deficit), January 1 61,193 2,207 5,262,544 (6,009)
Fund Balances (Deficit), December 31 173,909$ 3,099$ -$ 54,842$
Debt Service
- 102 -
Howard Ridge West Evanston Total
Tax Tax Total Total Nonmajor
Increment Increment Debt Capital Special Crown Capital Governmental
District District Service Improvements Assessment Capital Projects Funds
622,345$ 217,949$ 7,136,972$ -$ -$ -$ -$ 9,930,041$
- - - - 198,966 - 198,966 198,966
- - - 206,797 - - 206,797 3,958,688
- - - 59,572 - - 59,572 59,572
121 12,404 2,755 198,793 39,573 183,395 421,761 524,023
- - - - - - - 1,125,000
29,501 11,311 40,812 - - 1,250,000 1,250,000 1,472,169
651,967 241,664 7,180,539 465,162 238,539 1,433,395 2,137,096 17,268,459
- - - 1,044,704 73,388 - 1,118,092 2,169,623
- - - 441,189 - - 441,189 1,280,728
- - - - - 9,452,254 9,452,254 9,452,254
2,141,142 6,831 2,972,861 - - - - 5,744,927
- - - 11,399,581 - - 11,399,581 11,399,581
- - - - 299,800 - 299,800 299,800
1,401 17,218 18,619 - 3,936 - 3,936 22,555
39,831 - 39,831 181,585 1,903 308,742 492,230 532,061
2,182,374 24,049 3,031,311 13,067,059 379,027 9,760,996 23,207,082 30,901,529
(1,530,407) 217,615 4,149,228 (12,601,897) (140,488) (8,327,601) (21,069,986) (13,633,070)
3,570,000 - 3,570,000 9,675,439 277,004 24,385,000 34,337,443 37,907,443
3,131 - 3,131 - - - - 3,131
32,079 - 32,079 599,457 - 1,243,655 1,843,112 1,875,191
- - - 8,260,353 - - 8,260,353 8,427,114
(105,319) (30,000) (10,685,424) (793,576) (513,427) (316,380) (1,623,383) (15,781,603)
3,499,891 (30,000) (7,080,214) 17,741,673 (236,423) 25,312,275 42,817,525 32,431,276
1,969,484 187,615 (2,930,986) 5,139,776 (376,911) 16,984,674 21,747,539 18,798,206
247,378 432,766 6,000,079 8,758,473 2,997,700 540,861 12,297,034 23,273,139
2,216,862$ 620,381$ 3,069,093$ 13,898,249$ 2,620,789$ 17,525,535$ 34,044,573$ 42,071,345$
Capital ProjectsDebt Service
(See independent auditor's report.)
- 103 -
CITY OF EVANSTON, ILLINOIS
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 1,910,000$ 1,906,519$ (3,481)$
Interest 12,000 47,034 35,034
Total Revenues 1,922,000 1,953,553 31,553
Expenditures
Public Works 1,500,000 - (1,500,000)
Excess (Deficiency) of Revenues
Over Expenditures 422,000 1,953,553 1,531,553
Other Financing Sources (Uses)
Transfers in - 166,761 166,761
Transfers (out)(957,990) (2,457,990) (1,500,000)
Other Financing Sources (Uses) - Net (957,990) (2,291,229) (1,333,239)
Net Change in Fund Balance (535,990)$ (337,676) 198,314$
Fund Balances
Beginning of Year 2,373,730
End of Year 2,036,054$
(See independent auditor's report.)
- 104 -
CITY OF EVANSTON, ILLINOIS
Emergency Telephone System Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Taxes and special assessments 1,050,700$ 1,478,608$ 427,908$
Interest 1,000 13,504 12,504
Miscellaneous - 862 862
Total Revenues 1,051,700 1,492,974 441,274
Expenditures
Public safety 970,072 839,539 (130,533)
Excess (Deficiency) of Revenues
Over Expenditures 81,628 653,435 571,807
Other Financing Sources (Uses)
Transfers (out)(73,366) (73,366) -
Net Change in Fund Balance 8,262$ 580,069 571,807$
Fund Balance
Beginning of Year 181,996
End of Year 762,065$
(See independent auditor's report.)
- 105 -
CITY OF EVANSTON, ILLINOIS
Neighborhood Improvement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Interest -$ 1,066$ 1,066$
Expenditures
Housing and economic development 100,000 163 (99,837)
Net Change in Fund Balance (100,000)$ 903 100,903$
Fund Balances
Beginning of Year 170,171
End of Year 171,074$
(See independent auditor's report.)
- 106 -
CITY OF EVANSTON, ILLINOIS
Affordable Housing Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Affordable housing demo tax 50,000$ 58,700$ 8,700$
Developer contributions 325,000 125,000 (200,000)
Interest 230 14,449 14,219
Miscellaneous 75,600 9,417 (66,183)
Total Revenues 450,830 207,566 (243,264)
Expenditures
Housing and economic development 489,300 318,955 (170,345)
Net Change in Fund Balance (38,470)$ (111,389) (72,919)$
Fund Balance
Beginning of Year 1,476,544
End of Year 1,365,155$
(See independent auditor's report.)
- 107 -
CITY OF EVANSTON, ILLINOIS
HOME Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 588,936$ 300,423$ (288,513)$
Interest - 5,451 5,451
Miscellaneous - 27,477 27,477
Total Revenues 588,936 333,351 (255,585)
Expenditures
Housing and economic development 588,321 335,304 (253,017)
Net Change in Fund Balance 615$ (1,953) (2,568)$
Fund Balance
Beginning of Year 9,277
End of Year 7,324$
(See independent auditor's report.)
- 108 -
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments
grant from U.S. Department of
Housing and Urban Development 2,330,124$ 1,511,105$ (819,019)$
Miscellaneous - 14,346 14,346
Total Revenues 2,330,124 1,525,451 (804,673)
Expenditures
Housing and economic development 1,492,019 1,519,413 27,394
Total Expenditures 1,492,019 1,519,413 27,394
Excess (Deficiency) of Revenues
Over Expenditures 838,105 6,038 (832,067)
Other Financing Sources (Uses)
Transfers (out)(947,493) (6,792) 940,701
Other Financing Sources (Uses) - Net (947,493) (6,792) 940,701
Net Change in Fund Balance (109,388)$ (754) 108,634$
Fund Balance
Beginning of Year 64,107
End of Year 63,353$
(See independent auditor's report.)
- 109 -
CITY OF EVANSTON, ILLINOIS
Community Development Block Grant Fund
Schedule of Expenditures - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Administration/Planning
CDBG administration 896,987$ 258,331$ (638,656)$
Total Administration/Planning 896,987 258,331 (638,656)
Economic Development
Evanston Community Development Corporation 175,500 - (175,500)
Total Economic Development 175,500 - (175,500)
Housing
Rehab construction administration 202,892 196,193 (6,699)
Targeted housing code enforcement - 275,208 275,208
Total Housing 202,892 471,401 268,509
Neighborhood Revitalization
Street resurfacing - 104,427 104,427
Mason Park - 98,996 98,996
Special assessments - 240,016 240,016
Total Neighborhood Revitalization - 443,439 443,439
Public Services
Moran/Defender - 20,000 20,000
Youth Job Center of Evanston - 21,000 21,000
Summer youth - 65,000 65,000
YWCA Domestic Violence - 25,000 25,000
Connection for Homeless - 15,000 15,000
Family Focus - 15,000 15,000
Shore Community Services - 7,448 7,448
Children's Home + Aid - 59,250 59,250
Meals at Home - 15,000 15,000
North Shore Senior Center - 9,000 9,000
Evanston Schoars - 15,000 15,000
Open Studio Art - 4,000 4,000
Interfaith Housing Program - Homeshare - 15,000 15,000
Graffiti - 44,329 44,329
Iwork/hous options - 15,000 15,000
Other charges - 1,215 1,215
Contributions to other agencies 216,640 - (216,640)
Total Public Services 216,640 346,242 129,602
Total Expenditures 1,492,019$ 1,519,413$ 27,394$
(See independent auditor's report.)
- 110 -
CITY OF EVANSTON, ILLINOIS
Community Development Loan Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Interest -$ 5,086$ 5,086$
Miscellaneous 293,000 114,531 (178,469)
Total Revenues 293,000 119,617 (173,383)
Expenditures
Housing and economic development 293,000 199,035 (93,965)
Net Change in Fund Balance -$ (79,418) (79,418)$
Fund Balances
Beginning of Year 252,612
End of Year 173,194$
(See independent auditor's report.)
- 111 -
CITY OF EVANSTON, ILLINOIS
Neighborhood Stabilization Program 2 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 95,147$ 33,844$ (61,303)$
Total Revenues 95,147 33,844 (61,303)
Expenditures
Housing and economic development 90,167 29,196 (60,971)
Excess (Deficiency) of Revenues
Over Expenditures 4,980 4,648 (332)
Other Financing Sources (Uses)
Transfers (out)
Transfers to Debt Service Fund (4,654) (4,648) 6
Total Other Financing Sources (Uses)(4,654) (4,648) 6
Net Change in Fund Balance 326$ - (326)$
Fund Balances
Beginning of Year -
End of Year -$
(See independent auditor's report.)
- 112 -
CITY OF EVANSTON, ILLINOIS
Special Service District No. 4 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Property taxes
Current year 370,000$ 341,934$ (28,066)$
Investment income - 24 24
Total Revenues 370,000 341,958 (28,042)
Expenditures
Housing and economic development 370,000 370,000 -
Net Change in Fund Balance -$ (28,042) (28,042)$
Fund Balance
Beginning of Year (198,794)
End of Year (226,836)$
(See independent auditor's report.)
- 113 -
CITY OF EVANSTON, ILLINOIS
Good Neighbor Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Miscellaneous 1,000,000$ 1,000,000$ -$
Investment income - 2,718 2,718
Total Revenues 1,000,000 1,002,718 2,718
Expenditures
General management and support 70,000 70,000 -
Excess (Deficiency) of Revenues
Over Expenditures 930,000 932,718 2,718
Other Financing Sources (Uses)
Transfers (out)(930,000) (930,000) -
Other Financing Sources (Uses) - Net (930,000) (930,000) -
Net Change in Fund Balance -$ 2,718 2,718$
Fund Balance
Beginning of Year 1,884
End of Year 4,602$
(See independent auditor's report.)
- 114 -
CITY OF EVANSTON, ILLINOIS
General Assistance Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Property taxes 925,000$ 913,827$ (11,173)$
Investment income 1,000 10,175 9,175
Miscellaneous 27,500 14,724 (12,776)
Total Revenues 953,500 938,726 (14,774)
Expenditures
General management and support 1,265,921 981,531 (284,390)
Net Change in Fund Balance (312,421)$ (42,805) 269,616$
Fund Balance
Beginning of Year 644,499
End of Year 601,694$
(See independent auditor's report.)
- 115 -
CITY OF EVANSTON, ILLINOIS
Capital Improvements Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Intergovernmental allotments 4,190,000$ 206,797$ (3,983,203)$
Charges for services - 59,572 59,572
Investment income - 198,793 198,793
Total Revenues 4,190,000 465,162 (3,724,838)
Expenditures
General management and support 85,527 1,044,704 959,177
Public safety - 441,189 441,189
Capital outlay 29,712,000 11,399,581 (18,312,419)
Debt Service
Fiscal agent fees - 181,585 181,585
Total Expenditures 29,797,527 13,067,059 (16,730,468)
Excess (Deficiency) of Revenues
Over Expenditures (25,607,527) (12,601,897) 13,005,630
Other Financing Sources (Uses)
Issuance of bonds 12,002,000 9,675,439 (2,326,561)
Premium on issuance of bonds - 599,457 599,457
Transfers in 6,450,000 8,260,353 1,810,353
Transfers (out)(500,000) (793,576) (293,576)
Total Other Financing Sources (Uses)17,952,000 17,741,673 (210,327)
Net Change in Fund Balance (7,655,527)$ 5,139,776 12,795,303$
Fund Balances
Beginning of Year 8,758,473
End of Year 13,898,249$
(See independent auditor's report.)
- 116 -
CITY OF EVANSTON, ILLINOIS
Crown Capital Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Investment income -$ 183,395$ 183,395$
Miscellaneous 4,500,000 1,250,000 (3,250,000)
Total Revenues 4,500,000 1,433,395 (3,066,605)
Expenditures
Public works 9,634,000 9,452,254 (181,746)
Debt Service
Fiscal agent fees - 308,742 308,742
Total Expenditures 9,634,000 9,760,996 126,996
Excess (Deficiency) of Revenues
Over Expenditures (5,134,000) (8,327,601) (3,193,601)
Other Financing Sources (Uses)
Issuance of bonds 7,000,000 24,385,000 17,385,000
Premium on issuance of bonds - 1,243,655 1,243,655
Transfers (out)- (316,380) (316,380)
Total Other Financing Sources (Uses)7,000,000 25,312,275 18,312,275
Net Change in Fund Balance 1,866,000$ 16,984,674 15,118,674$
Fund Balances
Beginning of Year 540,861
End of Year 17,525,535$
(See independent auditor's report.)
- 117 -
CITY OF EVANSTON, ILLINOIS
Special Assessment Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Revenues
Special assessments 210,167$ 198,966$ (11,201)$
Investment income 1,200 39,573 38,373
Total Revenues 211,367 238,539 27,172
Expenditures
Current
General management and support 71,790 73,388 1,598
Debt Service
Principal - 299,800 299,800
Interest - 3,936 3,936
Fiscal agent fees - 1,903 1,903
Total Expenditures 71,790 379,027 307,237
Excess (Deficiency) of Revenues
Over Expenditures 139,577 (140,488) (280,065)
Other Financing Sources (Uses)
Issuance of bonds 250,000 277,004 27,004
Premium on issuance of bonds - - -
Transfers (out)(513,427) (513,427) -
Other Financing Sources (Uses) - Net (263,427) (236,423) 27,004
Net Change in Fund Balance (123,850)$ (376,911) (253,061)$
Fund Balance
Beginning of Year 2,997,700
End of Year 2,620,789$
(See independent auditor's report.)
- 118 -
CITY OF EVANSTON, ILLINOIS
Debt Service Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and Original and Original and
Final Budget Actual Final Budget Actual Final Budget Actual
Taxes
Property taxes 425,000$ 222,235$ 221,000$ 222,944$ 5,750,000$ 5,714,572$
Investment income - 23 500 34 20,000 (9,836)
Miscellaneous - - - - - -
Total Revenues 425,000 222,258 221,500 222,978 5,770,000 5,704,736
Housing and economic
development - 1,981 221,500 222,086 2,100,000 598,840
Debt Service
Principal - - - - - -
Interest 108,999 - - - - -
Fiscal agent fees - - - - - -
Total Expenditures 108,999 1,981 221,500 222,086 2,100,000 598,840
Excess (Deficiency) of Revenues
Over Expenditures 316,001 220,277 - 892 3,670,000 5,105,896
Issuance of bonds - - - - - -
Issuance of loans - - - - - -
Premium (discount) on bonds issued - - - - - -
Transfers in (out)
General - - - - (550,000) (550,000)
Capital improvement - - - - (2,390,000) (2,390,000)
Other - (107,561) - - (4,167,040) (7,428,440)
Total Other Financing Sources (Uses)- (107,561) - - (7,107,040) (10,368,440)
Net Changes in Fund Balances 316,001$ 112,716 -$ 892 (3,437,040)$ (5,262,544)
Fund Balances (Deficit)
Beginning of Year 61,193 2,207 5,262,544
End of Year 173,909$ 3,099$ -$
Washington
Chicago Main Tax
Increment District
Other Financing Sources (Uses)
No. 6 Increment District
Special Service Area National Tax
Expenditures
Revenues
- 119 -
Original and Original and Original and Original and
Final Budget Actual Final Budget Actual Final Budget Actual Final Budget Actual
275,000$ 136,927$ 605,000$ 622,345$ -$ 217,949$ 7,276,000$ 7,136,972$
- 9 400 121 150 12,404 21,050 2,755
- - 130,000 29,501 - 11,311 130,000 40,812
275,000.00 136,936 735,400 651,967 150 241,664 7,427,050 7,180,539
- 1,981 3,511,500 2,141,142 - 6,831 5,833,000 2,972,861
- - 900,000 - - - 900,000 -
72,666 - 60,000 1,401 10,000 17,218 251,665 18,619
- - - 39,831 - - - 39,831
72,666 1,981 4,471,500 2,182,374 10,000 24,049 6,984,665 3,031,311
202,334 134,955 (3,736,100) (1,530,407) (9,850) 217,615 442,385 4,149,228
- - 3,500,000 3,570,000 - - 3,500,000 3,570,000
- - - 3,131 - - - 3,131
- - - 32,079 - - - 32,079
- - (60,000) (60,000) (30,000) (30,000) (640,000) (640,000)
- - - - - - (2,390,000) (2,390,000)
- (74,104) - (45,319) - - (4,167,040) (7,655,424)
- (74,104) 3,440,000 3,499,891 (30,000) (30,000) (3,697,040) (7,080,214)
202,334$ 60,851 (296,100)$ 1,969,484 (39,850)$ 187,615 (3,254,655)$ (2,930,986)
(6,009) 247,378 432,766 6,000,079
54,842$ 2,216,862$ 620,381$ 3,069,093$
Increment District Total
Howard Ridge Tax West Evanston Tax
Increment District
Dempster-Dodge Tax
Increment District
(See independent auditor's report.)
- 120 -
ENTERPRISE FUNDS
Water Fund - To account for all activity related to providing water to the City’s residents, as well as the
Village of Skokie and the Northwest Water Commission. All activities necessary to provide such services
are accounted for in this fund, including, but not limited to: administration, operation, maintenance, debt
service, and billing/collection.
Sewer Fund - To account for all activity related to providing sewer service to the City’s residents and
businesses. Activities necessary to provide such service include, but are not limited to: administration,
operations, financing, capital improvements/maintenance, and billing/collection.
Parking Fund - To account for all city-owned parking facilities/garages, lots, and metered spaces. Maple
Avenue and Sherman Plaza Garage activities have been included in this fund beginning in FY09-10. All
activities are accounted for including administration, operations, financing, and revenue collection.
Solid Waste Fund - To account for all activity related to refuse, recycling, and yard waste collection and
disposal. Activities necessary to provide such service include, but are not limited to: administration,
operations, and revenue collection.
CITY OF EVANSTON, ILLINOIS
Water Fund
Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual
Operating Revenues
Charges for services 17,997,500$ 14,959,685$
Miscellaneous 523,660 682,500
Total Operating Revenues 18,521,160 15,642,185
Operating Expenses Excluding Depreciation
Administration 864,579 1,245,955
Operations
Pumping 2,518,249 2,508,266
Filtration 2,700,455 2,240,855
Distribution 32,770,795 2,713,971
Meter maintenance - 140
Other 1,379,109 831,174
Total Operating Expenses Excluding Depreciation 40,233,187 9,540,361
Operating Income (Loss) Before Depreciation (21,712,027) 6,101,824
Depreciation - 2,581,863
Operating Income (Loss)(21,712,027) 3,519,961
Non-Operating Revenue (Expenses)
Investment income 25,000 68,016
Interest expense (1,960,760) (841,267)
Issuance of bonds 6,559,496 -
Issuance of loans 20,590,000 -
Total Non-Operating Revenues (Expenses)25,213,736 (773,251)
Income (Loss) Before Transfers 3,501,709 2,746,710
Transfers
Transfers in - 187,430
Transfers (out)(3,469,559) (3,549,555)
Total Transfers (3,469,559) (3,362,125)
Net Income (Loss)32,150$ (615,415)
Net Position
Beginning of Year 69,863,941
Change in accounting principle (88,470)
Beginning of Year, (Restated)69,775,471
End of Year 69,160,056$
(See independent auditor's report.)
- 121 -
CITY OF EVANSTON, ILLINOIS
Water Fund - Operation and Maintenance Account
Schedule of Operating Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual
Charges for Services, Net
Water Sales
Evanston 7,747,500$ 7,836,105$
Skokie 4,000,000 1,165,277
Northwest Water Commission 6,250,000 5,930,626
Morton Grove & Niles - 27,677
Total Charges for Services 17,997,500 14,959,685
Miscellaneous
Fees and outside work 49,500 49,242
Fees, merchandise, and other 474,160 633,258
Total Miscellaneous 523,660 682,500
Total Operating Revenues 18,521,160$ 15,642,185$
(See independent auditor's report.)
- 122 -
INTERNAL SERVICE FUNDS
Equipment Replacement Fund - To account for the costs associated with the purchase of vehicles and
equipment.
Fleet Services Fund - To account for the cost of operating the municipal service center maintenance
facility for transportation vehicles/equipment used by city departments. Such costs are billed to the user
departments.
Insurance Fund - To account for all costs related to general liability and workers' compensation claims.
Beginning with FY10-11, health insurance premiums are also accounted for in this fund. This internal
service fund uses “funding premium” payments from city operating funds to pay claim and premium costs
incurred.
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Net Position
December 31, 2018
Equipment
Replacement Fleet Services Insurance Total
Current Assets
Cash and cash equivalents 809,057$ 970$ 70,000$ 880,027$
Receivables - other - - - -
Inventories - 1,247,629 - 1,247,629
Prepaid items 177,309 - 366,349 543,658
Due from other governments - - - -
Due from other funds 134,031 - - 134,031
Total Current Assets 1,120,397 1,248,599 436,349 2,805,345
Capital Assets
Capital assets being depreciated 24,252,496 617,552 - 24,870,048
Accumulated depreciation (17,032,460) (617,447) - (17,649,907)
Total Capital Assets 7,220,036 105 - 7,220,141
Total Assets 8,340,433 1,248,704 436,349 10,025,486
Liabilities and Deferred Inflows of Resources
Current Liabilities
Vouchers payable 109,099 203,597 180,229 492,925
Due to other funds - 609,378 4,364,418 4,973,796
Compensated absences payable - 20,083 5,590 25,673
Total OPEB liability - 4,253 - 4,253
Claims payable - - 2,604,500 2,604,500
Total Current Liabilities 109,099 837,311 7,154,737 8,101,147
Long-Term Liabilities
Compensated absences payable - 80,334 22,359 102,693
Total OPEB liability - 93,547 - 93,547
Claims payable - - 2,053,100 2,053,100
Total Long-Term Liabilities - 173,881 2,075,459 2,249,340
Total Liabilities 109,099 1,011,192 9,230,196 10,350,487
Deferred Inflows of Resources
OPEB items - 6,191 - 6,191
Total deferred inflows of resources - 6,191 - 6,191
Total liabilities and deferred inflows of resources 109,099 1,017,383 9,230,196 10,356,678
Net Position (Deficit)
Net investment in capital assets 7,220,036 105 - 7,220,141
Unrestricted (deficit)1,011,298 231,216 (8,793,847) (7,551,333)
Total Net Position (Deficit)8,231,334$ 231,321$ (8,793,847)$ (331,192)$
(See independent auditor's report.)
- 123 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
For the Fiscal Year Ended December 31, 2018
Equipment
Replacement Fleet Services Insurance Total
Operating Revenues
Charges for services
General Fund 1,297,608$ 2,175,530$ 3,399,312$ 6,872,450$
Sewer Fund - 192,213 269,988 462,201
Solid Waste - 322,362 - 322,362
Water Fund - 132,754 468,492 601,246
Motor Vehicle Parking System Fund 30,900 159,517 319,648 510,065
Library Fund 4,885 5,440 - 10,325
Emergency Telephone System - - 17,448 17,448
Community Development Block Grant 1,339 824 17,448 19,611
HOME - - 820 820
Claims reimbursements - - 33,057 33,057
Health insurance contributions
Contributions from other funds - - 10,450,946 10,450,946
Employee contributions - - 2,826,080 2,826,080
Other contributions - - 527,992 527,992
Miscellaneous - 18,765 - 18,765
Total Operating Revenues 1,334,732 3,007,405 18,331,231 22,673,368
Operating Expenses
General support - 1,104,522 522,518 1,627,040
Major maintenance 82,323 1,970,836 - 2,053,159
General liability claims - - 5,793,233 5,793,233
Workers' compensation claims - - 1,672,230 1,672,230
Health insurance premiums - - 14,788,960 14,788,960
Total Operating Expenses 82,323 3,075,358 22,776,941 25,934,622
Operating Income (Loss) Before Depreciation 1,252,409 (67,953) (4,445,710) (3,261,254)
Depreciation 1,695,533 - - 1,695,533
Operating Income (Loss)(443,124) (67,953) (4,445,710) (4,956,787)
Non-Operating Revenue (Expenses)
Investment income 5,035 25 - 5,060
Gain (loss) on sale of property (74,225) - - (74,225)
Total Non-Operating Revenues (Expenses)(69,190) 25 - (69,165)
Income (Loss) Before Transfers (512,314) (67,928) (4,445,710) (5,025,952)
Transfers
Transfers (out)- (33,442) (9,632) (43,074)
Total Transfers - (33,442) (9,632) (43,074)
Change in Net Position (512,314) (101,370) (4,455,342) (5,069,026)
Net Position (Deficit) - Beginning 8,743,648 341,448 (4,338,505) 4,746,591
Change in accounting principle - (8,757) - (8,757)
Net Position (Deficit) - Restated 8,743,648 332,691 (4,338,505) 4,737,834
Net Position (Deficit) - Ending 8,231,334$ 231,321$ (8,793,847)$ (331,192)$
(See independent auditor's report.)
- 124 -
CITY OF EVANSTON, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2018
Equipment
Replacement Fleet Services Insurance Total
Cash Flows from Operating Activities
Receipts from customers and users -$ 25,003$ 2,859,137$ 2,884,140$
Receipts from/(payments for)
interfund services provided 969,457 2,973,018 19,242,318 23,184,793
Receipts from other agencies - - 527,992 527,992
Payments to suppliers (79,038) (2,177,724) (522,518) (2,779,280)
Payments to employees - (1,105,956) (5,793,975) (6,899,931)
Payments for insurance premiums - - (16,303,322) (16,303,322)
Net Cash Provided from Operating Activities 890,419 (285,659) 9,632 614,392
Cash Flows from Noncapital Financing Activities
Interfund transfers - (33,442) (9,632) (43,074)
Net Cash from Noncapital Financing Activities - (33,442) (9,632) (43,074)
Cash Flows from Capital and Related Financing Activities
Sale of capital assets (74,225) - - (74,225)
Acquisition and construction of capital assets (1,198,749) - - (1,198,749)
Net Cash from Capital and Related Financing Activities (1,272,974) - - (1,272,974)
Cash Flows from Investing Activities
Interest income 5,035 25 - 5,060
Net Cash from Investing Activities 5,035 25 - 5,060
Net Increase (Decrease) in Cash and Cash Equivalents (377,520) (319,076) - (696,596)
Cash and Equivalents
Beginning 1,186,577 320,046 70,000 1,576,623
Ending 809,057$ 970$ 70,000$ 880,027$
Reconciliation of Operating Income (Loss) to Net Cash
Provided from Operating Activities
Operating Income (loss)(443,124)$ (67,953)$ (4,445,710)$ (4,956,787)$
Adjustments to reconcile operating income to
net cash provided from operating activities
Depreciation 1,695,533 - - 1,695,533
Changes in assets and liabilities
Increase/decrease in accounts receivable miscellaneous 16,810 6,238 - 23,048
Interfund receivable (66,593) - - (66,593)
Prepaid expenses - - 1,139,446 1,139,446
Inventories - (284,197) - (284,197)
Compensated absences - (5,547) (742) (6,289)
OPEB items - 4,113 - 4,113
Vouchers payable (13,525) 77,309 (1,351,678) (1,287,894)
Interfund payable (298,682) (15,622) 4,298,216 3,983,912
Claims payable - - 370,100 370,100
Net Cash Provided from Operating Activities 890,419$ (285,659)$ 9,632$ 614,392$
(See independent auditor's report.)
- 125 -
COMPONENT UNIT - PUBLIC LIBRARY
CITY OF EVANSTON LIBRARY COMPONENT UNIT
EVANSTON, ILLINOIS
Combining Balance Sheet/Statement of Net Position
December 31, 2018
Capital
Operating Endowment Improvement
Assets
Cash and investments 1,852,466$ 3,768,611$ 1,120,562$
Property taxes receivable 6,750,000 - -
Other receivables 95 - -
Due from other funds - - -
Net pension asset - IMRF - - -
Capital assets not being depreciated - - -
Capital assets net of accumulated depreciation - - -
Total Assets 8,602,561 3,768,611 1,120,562
Deferred Outflows of Resources
Pension items - IMRF - - -
Total Assets and Deferred Outflows of Resources 8,602,561$ 3,768,611$ 1,120,562$
Liabilities, Deferred Inflows of Resources,
and Fund Balance/Net Position
Current Liabilities
Accounts payable 164,552$ -$ 151,935$
Due to primary government 184,855 - -
Due to other funds - - 78
Total Current Liabilities 349,407 - 152,013
Noncurrent Liabilities
Due within one year - - -
Due in more than one year - - -
Total Noncurrent Liabilities - - -
Total Liabilities 349,407 - 152,013
Deferred Inflows of Resources
Pension items - IMRF - - -
OPEB items - - -
Unavailable Property Taxes 6,750,000 - -
Total Deferred Inflows of Resources 6,750,000 - -
Total Liabilities and Deferred Inflows of Resources 7,099,407 - 152,013
Fund Balances/Net Position
Net investment in capital assets - - -
Restricted for debt service - - -
Restricted for capital improvements - - 968,549
Restricted for endowment - 3,768,611 -
Unassigned/unrestricted 1,503,154 - -
Total Fund Balances/Net Position 1,503,154 3,768,611 968,549
Total Liabilities, Deferred Inflows,
and Fund Balances/Net Position 8,602,561$ 3,768,611$ 1,120,562$
- 126 -
Statement of
Debt Service Total Adjustments Net Position
4,504$ 6,746,143$ -$ 6,746,143$
353,437 7,103,437 - 7,103,437
- 95 - 95
78 78 (78) -
- - 1,100,800 1,100,800
- - 311,380 311,380
- - 12,012,649 12,012,649
358,019 13,849,753 13,424,751 27,274,504
- - 361,790 361,790
358,019$ 13,849,753$ 13,786,541$ 27,636,294$
-$ 316,487$ -$ 316,487$
- 184,855 - 184,855
- 78 (78) -
- 501,420 (78) 501,342
- - 272,882 272,882
- - 5,236,225 5,236,225
- - 5,509,107 5,509,107
- 501,420 5,509,029 6,010,449
- - 1,896,498 1,896,498
- - 18,473 18,473
353,437 7,103,437 - 7,103,437
353,437 7,103,437 1,914,971 9,018,408
353,437 7,604,857 7,424,000 15,028,857
- - 7,907,468 7,907,468
4,582 4,582 - 4,582
- 968,549 (660,150) 308,399
- 3,768,611 - 3,768,611
- 1,503,154 (884,777) 618,377
4,582 6,244,896 6,362,541 12,607,437
358,019$ 13,849,753$ 13,786,541$ 27,636,294$
(See independent auditor's report.)
- 127 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
EVANSTON, ILLINOIS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities
Governmental Fund
For Fiscal Year Ended December 31, 2018
Capital
Operating Endowment Improvement
Revenues
Property taxes 6,597,472$ -$ -$
Intergovernmental
Personal property replacement tax - - -
Grant revenue 251,999 - -
Charges for services 135,310 - -
Fines and forfeits 110,721 - -
Other
Investment income 48,820 (216,464) -
Donations 221,468 - -
Miscellaneous 76,193 - -
Total Revenues 7,441,983 (216,464) -
Expenditures
Current
Community services 7,191,513 - -
Capital Outlay - - 1,440,247
Debt Service
Payment Primary Government - - -
Principal - - -
Interest and fiscal charges - - 57,331
Total Expenditures 7,191,513 - 1,497,578
Excess (Deficiency) or Revenues
Over Expenditures 250,470 (216,464) (1,497,578)
Other Financing Sources (Uses)
Issuance of bonds - - 2,031,842
Premium on bond issuances - - 125,886
Transfer in 210,380 - -
Transfer (out)- (210,380) -
Total Other Financing Sources (Uses)210,380 (210,380) 2,157,728
Change in Fund Balance/Net Position 460,850 (426,844) 660,150
Fund Balances/Net Position
Beginning of Year 1,042,304 4,195,455 308,399
Change in accounting principle - - -
Beginning of Year, (Restated)1,042,304 4,195,455 308,399
End of Year 1,503,154$ 3,768,611$ 968,549$
- 128 -
Statement of
Debt Service Total Adjustments Activities
333,896$ 6,931,368$ -$ 6,931,368$
- - - -
- 251,999 - 251,999
- 135,310 - 135,310
- 110,721 - 110,721
- (167,644) - (167,644)
- 221,468 - 221,468
- 76,193 - 76,193
333,896 7,559,415 - 7,559,415
- 7,191,513 1,255,191 8,446,704
- 1,440,247 (1,440,247) -
- - - -
231,831 231,831 (231,831) -
101,572 158,903 (125,886) 33,017
333,403 9,022,494 (542,773) 8,479,721
493 (1,463,079) 542,773 (920,306)
- 2,031,842 (2,031,842) -
- 125,886 (125,886) -
- 210,380 (210,380) -
- (210,380) 210,380 -
- 2,157,728 (2,157,728) -
493 694,649 (1,614,955) (920,306)
4,089 5,550,247 8,170,643 13,720,890
- - (193,147) (193,147)
4,089 5,550,247 7,977,496 13,527,743
4,582$ 6,244,896$ 6,362,541$ 12,607,437$
(See independent auditor's report.)
- 129 -
CITY OF EVANSTON LIBRARY COMPONENT UNIT
EVANSTON, ILLINOIS
Library Operating Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended December 31, 2018
Original and
Final Budget Actual Variance
Taxes
Property taxes 6,685,000$ 6,597,472$ (87,528)$
Intergovernmental
Personal property replacement tax - - -
Grant revenue 172,418 251,999 79,581
Charges for services 304,620 135,310 (169,310)
Fines and forfeits 130,000 110,721 (19,279)
Other
Investment income 5,400 48,820 43,420
Donations 130,000 221,468 91,468
Miscellaneous - 76,193 76,193
Total Revenues 7,427,438 7,441,983 14,545
General management and support 7,119,673 7,191,513 71,840
Total Expenditures 7,119,673 7,191,513 71,840
Excess (Deficiency) of Revenues
Over Expenditures 307,765 250,470 (57,295)
Transfers in 265,771 210,380 (55,391)
Transfers (out) (356,624) - 356,624
Total Other Financing Sources (Uses)(90,853) 210,380 301,233
Net Changes in Fund Balances 216,912$ 460,850 243,938$
Fund Balances
Beginning of Year 1,042,304
End of Year 1,503,154$
Revenues
Expenditures
Other Financing Sources (Uses)
(See independent auditor's report.)
- 130 -
SUPPLEMENTAL DATA
CITY OF EVANSTON, ILLINOIS
ILLINOIS GRANT ACCOUNTABILITY AND TRANSPARENCY ACT
CONSOLIDATED YEAR END FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2018
CSFA Program
Number Name State Federal Other Total
402-00-1453 Senior Health Assistance Program -$ 56,714$ -$ 56,714$
402-01-0028 B-Special Programs for the Aging Title III, Part C Nutrition Services - 43,226 - 43,226
482-00-0263 Public Health Beach Grant - 56,068 - 56,068
482-00-0265 Cities Readiness Initiative Cooperative Agreement - 31,571 - 31,571
494-00-1488 Motor Fuel Tax Program 2,457,990 - - 2,457,990
494-10-0343 State and Community Highway Safety/ National Priority Safety Program - 49,865 - 49,865
532-01-1510 IEPA Special State Projects 364,076 539,610 - 903,686
546-00-1395 Victims of Crime Act (VOCA) FFY15 - 27,754 - 27,754
586-18-0409 Child Care & Adult Care Program - 59,478 - 59,478
586-18-0410 Summer Food Service Program for Children - 146,130 - 146,130
588-40-0450 Emergency Management Performance Grants - 60,498 - 60,498
Other Grants Programs and Activities - 3,142,343 - 3,142,343
All other costs not allocated - - 181,686,941 181,686,941
TOTALS 2,822,066$ 4,213,257$ 181,686,941$ 188,722,264$
(See independent auditor's report.)
- 131 -
STATISTICAL SECTION
This part of the City of Evanston, Illinois’ comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information displays about the City’s
overall financial health.
Contents Page(s)
Financial Trends
These schedules contain trend information to help the reader understand
how the City’s financial performance and well-being have been changed
over time.
132-137
Revenue Capacity
These schedules contain information to help the reader assess the City’s
most significant local revenue source, the property tax.
138-140
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the City’s
ability to issue additional debt in the future.
141-145
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City’s financial
activities take place.
146-147
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the
services the City provides and the activities it performs.
148-153
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
CITY OF EVANSTON, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2010 2011 2011*2012 2013 2014 2015**2016 2017 2018***
Governmental Activities
Net investment in capital assets 41,109$ 49,483$ 57,663$ 60,105$ 47,214$ 46,633$ 47,953$ 51,588$ 51,575$ 52,536$
Restricted 23,645 23,187 31,559 31,754 24,720 25,446 16,409 18,523 11,990 8,708
Unrestricted 10,400 4,072 (24,033) (23,729) (13,846) (11,436) (136,007) (170,270) (164,614) (194,435)
Total Governmental Activities Net Position 75,154$ 76,742$ 65,189$ 68,130$ 58,088$ 60,643$ (71,645)$ (100,159)$ (101,049)$ (133,191)$
Business-Type Activities
Net investment in capital assets 192,921$ 207,162$ 215,755$ 228,738$ 239,243$ 246,382$ 255,622$ 268,851$ 278,446$ 283,981$
Restricted 3,378 1,624 1,034 710 712 649 - - - -
Unrestricted 25,417 19,141 25,385 26,363 25,484 23,563 22,785 18,928 14,249 11,896
Total Business-Type Activities Net Position 221,716$ 227,927$ 242,174$ 255,811$ 265,439$ 270,594$ 278,407$ 287,779$ 292,695$ 295,877$
Primary Government
Net investment in capital assets 234,030$ 256,645$ 273,418$ 288,843$ 286,457$ 293,015$ 303,575$ 320,439$ 330,021$ 336,517$
Restricted 27,023 24,811 32,593 32,464 25,432 26,095 16,409 18,523 11,990 8,708
Unrestricted 35,817 23,213 1,352 2,634 11,638 12,127 (113,222) (151,342) (150,365) (182,539)
Total Primary Government Net Position 296,870$ 304,669$ 307,363$ 323,941$ 323,527$ 331,237$ 206,762$ 187,620$ 191,646$ 162,686$
* The City changed its fiscal year end to December 31, 2011.
** The City implemented GASB Statement No. 68 which resulted in a decrease in unrestricted net position
*** The City implemented GASB Statement No. 75 which resulted in a decrease in unrestricted net position
Source: City Finance Division
- 132 -
CITY OF EVANSTON, ILLINOIS
Changes in Net Position
Last Ten Fiscal Years
(amounts expressed in thousands)
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
Expenses
Governmental Activities
General government 19,773$ 17,517$ 17,911$ 22,508$ 18,892$ 13,811$ 12,493$ 18,163$ 20,890$ 20,016$
Public safety 50,488 53,226 43,465 52,740 57,090 58,795 57,443 55,625 61,191 80,789
Public works 18,509 15,626 12,399 11,099 13,782 25,825 20,011 13,668 24,793 22,718
Health and human resource development 4,760 4,541 3,547 3,200 3,601 3,837 2,911 3,319 3,354 3,455
Housing and economic development 20,066 10,857 11,630 19,101 11,123 12,443 10,532 21,063 7,023 9,129
Culture and recreation 9,120 20,142 15,607 17,438 16,433 9,358 14,794 14,380 14,744 14,061
Interest on long-term debt 4,396 5,595 3,114 1,786 377 3,919 3,757 3,779 3,354 4,683
Total Governmental Activities Expenses 127,112 127,504 107,673 127,872 121,298 127,988 121,941 129,997 135,349 154,851
Business-Type Activities
Water 9,133 8,713 7,450 10,172 11,193 11,977 10,748 11,450 12,239 12,964
Sewer 8,779 8,784 7,083 7,872 7,649 7,293 6,608 6,683 6,540 6,735
Solid waste - - 4,317 4,612 4,732 4,856 5,150 4,967 4,907 4,852
Motor vehicle parking system 8,841 8,425 6,673 8,297 8,369 7,856 7,862 8,532 8,575 9,321
Total Business-Type Activities Expenses 26,753 25,922 25,523 30,953 31,943 31,982 30,368 31,632 32,261 33,872
Total Primary Government Expenses 153,865$ 153,426$ 133,196$ 158,825$ 153,241$ 159,970$ 152,309$ 161,629$ 167,610$ 188,723$
Program Revenues
Governmental Activities
Charges for services
General government 13,087$ 12,796$ 9,219$ 9,478$ 8,917$ 9,374$ 8,629$ 10,094$ 8,145$ 8,985$
Culture and recreation 4,902 5,265 4,587 9,934 5,236 5,360 5,572 5,560 5,669 6,037
Other activities 7,946 9,377 8,523 11,349 12,179 15,253 11,268 15,739 12,712 11,945
Operating grants and contributions 5,898 9,851 9,861 13,453 10,102 7,151 5,535 6,809 5,931 5,244
Capital grants and contributions 4,037 8,026 3,941 2,017 2,956 501 275 368 325 125
Total Governmental Activities Program Revenues 35,870 45,315 36,131 46,231 39,390 37,639 31,279 38,570 32,782 32,336
- 133 -
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
Business-Type Activities
Charges for services
Water 12,694$ 13,738$ 12,369$ 14,967$ 14,658$ 15,052$ 15,722$ 16,419$ 17,588$ 15,642$
Sewer 13,243 13,393 11,377 14,115 13,510 12,785 12,511 13,049 12,478 11,920
Sherman garage - - - - - - - - - -
Solid waste - - 2,900 3,490 3,651 3,971 4,004 4,031 4,061 4,083
Motor vehicle parking system 6,772 5,987 4,928 6,663 6,255 6,080 6,164 6,688 6,530 6,621
Operating grants and contributions - - - 395 939 15 - 38,400 - -
Total Business-Type Activities Program Revenues 32,709 33,118 31,574 39,630 39,013 37,903 38,401 78,587 40,657 38,266
Total Primary Government Program Revenues 68,579$ 78,433$ 67,705$ 85,861$ 78,403$ 75,542$ 69,680$ 117,157$ 73,439$ 70,602$
Net (Expense)/Revenue
Governmental Activities (91,242)$ (82,189)$ (71,542)$ (81,641)$ (81,908)$ (90,349)$ (90,662)$ (91,427)$ (102,567)$ (122,515)$
Business-Type Activities 5,956 7,196 6,051 8,677 7,070 5,921 8,033 46,955 8,396 4,394
Total Primary Government Net Expense (85,286)$ (74,993)$ (65,491)$ (72,964)$ (74,838)$ (84,428)$ (82,629)$ (44,472)$ (94,171)$ (118,121)$
General Revenues and Other Changes in
Net Position
Governmental Activities
Taxes
Property taxes 58,839$ 47,040$ 33,399$ 47,874$ 46,349$ 48,579$ 45,840$ 45,610$ 46,563$ 47,102$
Sales taxes 14,880 15,577 13,495 15,888 16,965 17,362 17,758 17,932 16,071 16,963
Investment earnings 721 557 32 398 79 (258) 30 118 235 778
Miscellaneous 24,601 27,501 21,244 25,348 27,369 26,612 30,950 33,217 35,011 38,786
Transfers (13,700) (99) (8,180) (4,926) (2,586) 610 631 434 3,797 1,480
Total Governmental Activities 85,341 90,576 59,990 84,582 88,176 92,905 95,209 97,311 101,677 105,109
Business-Type Activities
Property taxes - - - - - - - - - 410
Investment earnings 87 23 16 34 33 (156) 27 59 114 234
Miscellaneous - - - - (61) - 301 (245) 203 -
Transfers 13,700 99 8,180 4,926 2,586 (610) (631) (434) (3,797) (1,480)
Total Business-Type Activities 13,787 122 8,196 4,960 2,558 (766) (303) (620) (3,480) (836)
Changes in Net Position
Governmental Activities (5,901) 8,387 (11,552) 2,941 6,268 2,556 4,547 5,884 (890) (17,406)
Business-Type Activities 19,743 7,318 14,247 13,637 9,628 5,155 7,730 46,335 4,916 3,558
Total Primary Government 13,842$ 15,705$ 2,695$ 16,578$ 15,896$ 7,711$ 12,277$ 52,219$ 4,026$ (13,848)$
* The City changed its fiscal year end to December 31, 2011.
Source: City Finance Division
- 134 -
CITY OF EVANSTON, ILLINOIS
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(amounts expressed in thousands)
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
General Fund
Nonspendable -$ -$ -$ -$ -$ -$ 118$ -$ 300$ 310$
Reserved/Restricted 1,585 1,995 - - - - - - - -
Unreserved/Restricted 18,603 20,009 - - - - - - - -
Assigned - - 7,590 6,848 6,362 5,347 5,672 5,046 4,180 4,303
Unassigned - - 10,803 10,186 10,001 9,636 4,914 6,622 8,868 9,242
Total General Fund 20,188$ 22,004$ 18,393$ 17,034$ 16,363$ 14,983$ 10,586$ 11,668$ 13,348$ 13,855$
All Other Governmental Funds
Reserved 28,953$ 28,738$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved, reported in
Special Revenue Funds 10,807 10,907 - - - - - - - -
Capital Projects Funds 9,276 9,665 - - - - - - - -
Nonspendable - - 1,419 - 407 1,430 2,158 - - -
Restricted - - 32,353 32,431 25,359 26,003 16,409 18,523 11,418 25,651
Committed - - 806 2,150 3,507 3,540 2,556 2,996 - -
Assigned - - 10,074 5,307 8,372 10,467 5,517 7,668 12,301 17,065
Unassigned - - (175) 1,105 (149) (153) (221) (252) (204) (227)
Total All Other Governmental Funds 49,036$ 49,310$ 44,477$ 40,993$ 37,496$ 41,287$ 26,419$ 28,935$ 23,515$ 42,489$
* The City changed its fiscal year end to December 31, 2011.
Notes:
1. Fund balances for debt service have been included in the reserved amounts.
2. Starting fiscal year ending December 31, 2011, financials are presented per the new reporting standards of GASB 54.
Source: City Finance Division
- 135 -
CITY OF EVANSTON, ILLINOIS
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(amounts expressed in thousands)
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
Revenues
Taxes 84,726$ 73,559$ 56,466$ 79,331$ 78,254$ 77,933$ 75,747$ 76,047$ 78,157$ 81,281$
Licenses, fees and permits 7,279 8,661 6,776 10,470 10,617 14,503 12,184 17,933 13,358 11,664
Fines and penalties 4,151 4,003 3,280 3,470 3,449 3,358 148 3,612 3,468 3,765
Charges for services 8,680 9,786 6,283 7,763 7,723 7,793 23,834 8,791 8,713 10,053
Special assessments 240 429 235 293 275 167 8,312 169 260 199
Intergovernmental 20,696 26,456 23,183 29,252 27,844 24,300 3,554 24,886 22,627 23,004
Investment earnings 714 555 22 397 94 89 30 118 235 778
Other revenues 4,642 6,390 4,133 2,915 1,906 1,791 1,722 3,892 3,843 5,220
Total Revenues 131,128 129,839 100,378 133,891 130,162 129,934 125,531 135,448 130,661 135,964
Expenditures
General government 16,184 23,463 13,594 18,532 17,611 13,314 13,444 17,064 18,152 18,330
Public safety 48,970 50,352 42,140 54,611 56,431 59,425 59,654 62,252 64,347 65,533
Public works 16,062 14,053 7,574 9,380 11,982 19,821 19,815 13,477 14,041 22,069
Recreation and cultural opportunities 18,100 17,399 16,192 14,309 14,775 10,524 11,087 11,894 12,371 12,789
Health and human development 4,760 4,541 3,588 3,200 3,601 3,837 3,141 3,021 3,111 3,142
Housing and economic development 9,120 11,345 11,999 19,095 11,305 9,348 13,292 10,477 7,225 9,006
Capital outlay 7,960 7,112 5,832 8,523 5,948 6,286 9,151 9,953 14,953 11,399
Debt service
Interest 4,953 4,878 4,384 5,175 4,996 4,411 4,413 4,276 4,040 4,536
Fiscal agent fees 5 12 79 76 127 43 16 14 2 537
Principal 7,524 7,650 10,106 13,055 34,259 10,040 20,833 19,661 24,253 17,557
Total Governmental Activities Expenditure 133,638 140,805 115,488 145,956 161,035 137,049 154,846 152,089 162,495 164,898
Net (Expense)/Revenue
Governmental Activities (2,510) (10,966) (15,110) (12,065) (30,873) (7,115) (29,315) (16,641) (31,834) (28,934)
- 136 -
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
Other Financing Sources (Uses)
Proceeds from borrowing -$ 13,393$ 15,420$ 12,618$ 34,982$ 9,989$ 22,377$ 19,652$ 26,558$ 46,892$
Capitalized interest income - 120 - - - - - - - -
Capitalized interest expense - - - - - - - - - -
Escrow funding - - - - - - - - - -
Transfers in 11,019 5,727 5,839 9,271 8,182 9,202 10,308 16,011 17,428 20,698
Transfers (out)(23,324) (6,184) (14,593) (14,668) (11,879) (9,665) (9,315) (15,542) (15,893) (19,174)
Total Other Financing Sources (Uses)(12,305) 13,056 6,666 7,221 31,285 9,526 23,370 20,121 28,093 48,416
Net Changes in Fund Balance (14,815)$ 2,090$ (8,444)$ (4,844)$ 412$ 2,411$ (5,945)$ 3,480$ (3,741)$ 19,482$
Debt Service as a Percentage of
Noncapital Expenditures 9.93%9.36%13.29%13.26%25.31%11.05%17.62%16.84%19.18%14.39%
* The City changed its fiscal year end to December 31, 2011.
Source: City Finance Division
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CITY OF EVANSTON, ILLINOIS
Equalized Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Levy Total Total Total
Year Residential Farm Commercial Industrial Railroad Equalized Actual Tax
Ended Property Property Property Property Property Assessed Value Value Rate
2008 2,324,551,100$ 16,895$ 560,106,493$ 53,168,671$ 554,733$ 2,938,397,892$ 8,815,193,676$ 1.295
2009 2,564,394,619 15,956 615,808,511 125,104,411 665,872 3,305,989,369 9,917,968,107 1.204
2010 2,233,194,054 15,956 623,156,869 184,687,438 829,769 3,041,884,086 9,125,652,258 1.364
2011 2,100,690,657 15,956 513,880,731 111,899,205 881,024 2,727,367,573 8,182,102,719 1.591
2012 1,944,932,067 15,956 462,671,239 106,007,084 995,206 2,514,621,552 7,543,864,656 1.551
2013 1,653,524,481 15,956 452,108,891 94,820,879 1,226,831 2,201,697,038 6,605,091,114 1.760
2014 1,792,383,435 15,467 416,165,953 34,726,327 1,278,793 2,244,569,975 6,733,709,925 1.856
2015 1,751,252,888 15,467 410,670,248 32,549,681 1,533,241 2,196,021,525 6,588,064,575 1.766
2016 2,151,672,082 15,467 483,830,858 33,333,491 1,559,871 2,670,411,769 8,011,235,307 1.501
2017 2,178,182,897 15,467 527,589,667 32,680,857 1,591,232 2,740,060,120 8,220,180,360 1.490
Note:Property is reassessed once every three years.Equalized Assessed value is approximately 1/3 of actual value.Tax rates are per $100 of equalized
assessed value.
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CITY OF EVANSTON, ILLINOIS
Principal Property Taxpayers
Current Year and Nine Years Ago
2017 Levy 2008 Levy
Percentage Percentage
Total of Total City Total of Total City
Equalized Assessed Taxable Equalized Assessed Taxable
Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV
Orrington TT LLC Golub 21,728,545$ 1 0.79%Church Street Plaza 38,719,188$ 1 1.32%
McCaffery Interests 20,332,115 2 0.74%Rotary International 26,605,707 2 0.91%
FSP 909 Davis Street 19,793,763 3 0.72%Grubb & Ellis 24,020,467 3 0.82%
MB Sherman Highlands 13,305,729 4 0.49%Omni Orrington Hotel 17,153,477 4 0.58%
Evanston LLC 12,869,296 5 0.47%Inland 16,184,339 5 0.55%
Azurri of Evanston Inc.12,337,272 6 0.45%Church & Chicago Ltd Prtn 15,851,793 6 0.54%
MHF Evanston V LLC 11,773,805 7 0.43%Evanston Hotel Assoc.13,665,739 7 0.47%
FDS 1007 Evanston LLC 11,443,740 8 0.42%NNN Church Street Office Center 13,198,415 8 0.45%
Northshore Univ Health 10,446,302 9 0.38%Albertson's (Jewel & Osco)11,742,809 9 0.40%
TIAA PK Evanston Inc 10,025,916 10 0.37%Sanir Cumberland Center 11,601,647 10 0.39%
Total 144,056,484$ 5.26% Total 188,743,581$ 6.42%
Total EAV 2,740,060,120$ Total EAV 2,938,397,892$
Source: Cook County
- 139 -
CITY OF EVANSTON, ILLINOIS
Property Tax Levies and Collections
Last Ten Levy Years
Tax Taxes Levied Collected Receipts Collections Total Collected to Date
Levy for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2008 38,044,671$ 36,246,629$ 95.27%358,214$ 36,604,843$ 96.22%
2009 39,779,364 38,018,159 95.57%464,506 38,482,665 96.74%
2010 41,479,398 39,412,004 95.02%764,463 40,176,467 96.86%
2011 43,397,590 42,064,756 96.93%348,189 42,412,945 97.73%
2012 43,330,121 41,776,375 96.41%559,130 42,335,505 97.70%
2013 43,869,798 42,762,685 97.48%338,420 43,101,105 98.25%
2014 45,557,079 44,280,493 97.20%270,619 44,551,112 97.79%
2015 46,394,914 44,974,845 96.94%205,607 45,180,452 97.38%
2016 47,538,529 46,723,672 98.29%97,249 46,820,921 98.49%
2017 48,161,247 46,866,198 97.31%197,415 47,063,613 97.72%
2018 49,712,625 See Note See Note See Note See Note See Note
Note: Levy Year 2017 is collected through December 31, 2018
Source: City Finance Division
- 140 -
CITY OF EVANSTON, ILLINOIS
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(2)Net
Gross (3)General
(1) General Debt Debt Net Debt to Debt to Obligation
Fiscal Equalized Obligation Service Payable General Total Equalized Total Bonded
Year Assessed Bonded Monies From Other Obligation Personal Assessed Personal Debt
Ended Population Valuation Debt Available Revenues Debt Income Valuation Income Per Capita
2009 74,239 2,772,340,029 171,945,001 7,317,930 62,079,183 102,547,888 2,902,967,617 6.20% 5.92% 1,381.32
2010 74,239 2,938,397,892 151,470,000 5,989,400 46,882,320 98,598,280 2,902,967,617 5.15% 5.22% 1,328.12
2011 74,486 3,305,989,369 153,535,000 5,309,064 50,097,260 98,128,676 3,157,759,484 4.64% 4.86% 1,317.41
2011* 74,486 3,041,884,087 157,695,000 2,629,020 47,111,060 107,954,920 3,197,311,550 5.18% 4.93% 1,449.33
2012 74,486 2,727,367,573 154,159,999 16,085,747 44,899,176 93,175,076 3,176,902,386 5.65% 4.85% 1,250.91
2013 74,619 2,514,621,552 147,942,869 12,520,761 40,042,921 95,379,187 3,113,477,775 5.88% 4.75% 1,278.22
2014 75,570 2,201,697,038 146,624,679 12,209,139 34,614,357 99,801,183 3,262,734,750 6.66% 4.49% 1,320.65
2015 75,570 2,244,569,975 145,641,705 438,453 37,651,325 107,551,927 3,124,063,800 6.49% 4.66% 1,423.21
2016 75,603 2,196,021,525 142,009,856 745,997 34,547,933 106,715,926 3,235,052,370 6.47% 4.39% 1,411.53
2017 75,472 2,670,411,769 143,470,868 241,781 37,104,152 106,124,935 3,316,617,040 5.37% 4.33% 1,406.15
2018 75,557 2,740,060,120 170,540,858 417,987 39,701,503 130,421,368 3,472,297,492 6.22% 4.91% 1,726.13
* The City changed its fiscal year end to December 31, 2011.
Notes: (1)
(2) Excludes limited purpose special service district bonds.
(3)
Source: Cook County and City Finance Division
Equalized assessed values do not include tax increment financing district incremental equalized assessed values.
These amounts include the general obligation bonds that are being repaid from the Water Fund, Solid Waste Fund, Sewer Fund, Motor Vehicle Parking System Fund,
Howard Hartrey Tax Increment District, Washington National Tax Increment District, and Special Assessment Fund.
- 141 -
CITY OF EVANSTON, ILLINOIS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal General Special General Water Total Percentage (1)
Year Obligation Service District Obligation Revenue IEPA Primary of Personal Per
Ended Bonds Bonds Capital Lease Bonds Bonds Loans Government Income Capita
2007 110,920,000$ 3,070,000$ -$ 76,825,000$ 3,240,000$ 99,490,921$ 293,545,921$ 10.11% 3,954$
2008 115,220,000 2,785,000 - 66,530,000 2,755,000 103,410,887 290,700,887 10.01% 3,916
2009 115,961,136 2,165,000 1,035,370 55,983,865 2,245,000 101,775,223 279,165,594 9.62% 3,760
2010 109,078,880 2,155,000 708,552 40,236,120 1,720,000 95,370,544 249,269,096 8.59% 3,358
2011 115,482,439 1,840,000 363,759 36,212,561 1,170,000 87,059,150 242,127,909 7.67% 3,251
2011* 120,739,206 1,840,000 - 35,115,794 1,170,000 79,081,272 237,946,272 7.44% 3,195
2012 119,423,742 1,515,000 - 33,221,257 595,000 70,375,368 225,130,367 7.09% 3,022
2013 119,123,639 1,175,000 - 30,411,358 305,000 64,658,382 215,673,379 6.93% 2,890
2014 119,060,744 795,000 - 30,566,097 - 58,412,659 208,834,500 6.40% 2,763
2015 117,752,440 405,000 - 31,911,608 - 51,901,172 209,138,551 6.69% 2,767
2016 116,143,472 - - 30,926,350 - 45,256,237 192,326,059 5.95% 2,544
2017 117,965,916 - - 25,504,953 - 40,328,108 183,798,977 5.54% 2,435
2018 144,702,821 - - 25,839,037 - 34,921,821 205,463,679 5.92% 2,719
* The City changed its fiscal year end to December 31, 2011.
Notes:
Source: City Finance Division
Governmental Activities Business- Type Activities
(1) Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(2) See the Schedule of Demographics and Economic Statistics for personal income and population data.
- 142 -
CITY OF EVANSTON, ILLINOIS
Direct and Overlapping Governmental Activities Debt
As of December 31, 2018
Percentage
of Debt
Total Applicable The City's
Outstanding to the City Share of Debt
Direct debt - bonds, notes, and
contracts outstanding 148,164,608$ 100.00%148,164,608$
Other bonded debt by taxing body
High School District 202 26,865,000 90.34%24,269,841
School District 65 71,646,067 90.34%64,725,057
Community College District 535 32,130,000 12.00%3,855,600
Cook County 2,950,121,751 1.82%53,692,216
Cook County Forest Preserve District 92,605,000 1.82%1,685,411
Metropolitan Water Reclamation District 2,679,240,889 1.86%49,833,881
Skokie Park District 3,076,000 0.62%19,071
Total Overlapping Debt 5,855,684,707 198,081,077
6,003,849,315$ 346,245,685$
Note: Overlapping debt calculated based on the pro rata EAV.
Source: Cook County Clerk's Offices
- 143 -
CITY OF EVANSTON, ILLINOIS
Legal Debt Margin
December 31, 2018
The City is a home rule municipality.
To date, the Illinois General Assembly has set no limits for home rule municipalities.
“The General Assembly may limit by law the amount and require referendum approval of debt to be
incurred by home rule municipalities,payable from ad valorem property tax receipts,only in excess of the
following percentages of the assessed value of its taxable property...(2)if its population is more than
25,000 and less than 500,000 an aggregate of one percent...indebtedness which is outstanding on the
effective date (July 1,1971)of this constitution or which is thereafter approved by referendum...shall not
be included in the foregoing percentage amounts.”
Chapter 65, Section 5/8-5-1 of the Illinois Compiled Statutes governs computation of the legal debt margin.
- 144 -
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
2010 12,742,603$ 7,756,760$ 4,985,843$ 525,000$ 91,556$ 8.09
2011 13,752,681 7,191,577 6,561,104 550,000 71,269 10.56
2011*12,368,533 6,146,652 6,221,881 - 24,672 252.18
2012 14,967,204 8,430,599 6,536,605 575,000 37,687 10.67
2013 14,657,748 8,175,707 6,482,041 290,000 19,688 20.93
2014 15,051,732 7,938,838 7,112,894 305,000 6,672 22.82
2015 NA NA NA - - NA
2016 NA NA NA - - NA
2017 NA NA NA - - NA
2018 NA NA NA - - NA
N/A - The City has no revenue bonds outstanding after December 31, 2014.
* The City changed its fiscal year end to December 31, 2011.
Source: Various city departments
Note:Detail regarding the City's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest, depreciation, or amortization expense.
- 145 -
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
2009 74,239 2,902,967,617$ 39,103$ 32.5 94.0%9,550 4.7%
2010 74,486 3,157,759,484 42,394 34.3 94.0%9,550 7.9%
2011 74,486 3,197,311,550 42,925 34.3 94.0%11,369 7.3%
2012 74,486 3,176,902,386 42,651 35.1 93.6%11,418 6.8%
2013 74,619 3,113,477,775 41,725 34.4 93.9%10,293 6.7%
2014 75,570 3,262,734,750 43,175 34.4 93.9%10,429 4.2%
2015 75,570 3,124,063,800 41,340 34.4 93.9%11,088 4.5%
2016 75,603 3,235,052,370 42,790 35.2 94.0%12,104 4.3%
2017 75,472 3,316,617,040 43,945 35.3 94.0%12,026 3.9%
2018 75,557 3,472,297,492 45,956 36.0 93.4%10,899 3.1%
Source: Various Government agencies
- 146 -
CITY OF EVANSTON, ILLINOIS
Principal Employers
Current Year and Nine Years Ago
Employer Employees %Rank Employer Employees %Rank
Northshore University Health System 5,861 34%1 Northwestern University 5,325 36%1
Northwestern University 5,700 34%2 Evanston Northwestern Healthcare 3,780 25%2
Evanston School District 65 1,137 7%3 St. Francis Hospital 1,649 11%3
Presence Saint Francis Hospital 1,200 7%4 City of Evanston 1,000 7%4
City of Evanston 807 5%5 Evanston School District 65 700 5%5
West Minster Pl., McGaw Care Center 490 3%6 Evanston Township High School 566 4%6
School District 202 575 3%7 Presbyterian Homes/McGaw Care 533 4%7
Rotary International 533 2%8 Shure, Inc.510 3%8
C.E. Neifhoff & Co.400 2%9 Jewel/Osco Food Store 455 3%9
Whole Foods 300 2%10 Mather LifeWays Retirement 430 3%10
Total 17,003 Total 14,948
Source: City Economic Development Division
2018 2009
- 147 -
CITY OF EVANSTON, ILLINOIS
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2010 2011 2011* 2012 2013 2014 2015 2016 2017 2018
Function/Program
General Government
City Clerk 2.00 2.00 3.00 2.80 2.20 2.20 2.00 2.00 2.00 2.00
City Manager's Office 27.70 22.00 8.00 12.00 12.00 14.00 13.00 28.50 32.00 30.00
Legal 6.00 7.00 7.00 7.00 8.00 7.00 8.00 8.00 4.50 4.50
Administrative Services 36.50 50.50 67.00 68.30 59.00 49.00 51.00 57.20 57.70 55.70
Community Development 33.00 28.00 27.00 27.00 24.00 21.00 19.00 21.50 26.25 22.00
Police 218.50 219.00 222.00 225.00 220.00 227.00 227.00 225.50 225.80 220.00
Fire 111.00 107.00 108.00 110.00 106.00 110.00 110.00 110.00 110.00 110.00
Human and Health Services 26.40 15.90 17.00 17.70 20.00 21.10 22.10 21.10 21.10 21.75
Recreation, Parks, and Forestry 131.75 132 105 105.21 69 69.64 74.23 77.13 78.83 76.13
Public Works 83.25 58.8 49 49.25 97 108.45 107.45 84.25 84.25 72.5
Total General Government 676.10 642.20 613.00 624.26 617.20 629.39 633.78 635.18 642.43 614.58
Library 67.50 52.00 52.00 56.38 63.00 63.13 66.45 66.87 73.88 71.05
Neighborhood Stabilization Program - 1.00 1.00 2.00 1.00 1.31 0.50 0.45 0.3 0.15
Housing Rehabilitation - - - - - - 1.75 1.75 1.75 1.75
General Assistance Fund - - - - - - 4.00 4.00 4.00 4.25
HOME Fund - - - - - - 0.40 0.50 0.50 0.35
Emergency Telephone System 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00
CDBG 2.00 2.00 3.00 1.53 3.00 2.60 2.60 2.80 2.50 2.75
Economic Development Fund 2.30 5.00 6.00 7.00 5.00 6.25 6.25 - - -
Capital Improvements Fund - 1.00 - - - - - - - 4.50
Maple Ave. Garage - - - - - - - - - -
Parking Fund 15.50 14.00 15.00 15.50 15.50 15.50 15.50 15.50 15.50 18.00
Water 43.00 42.00 41.00 42.50 40.00 42.50 44.50 44.50 44.50 45.75
Sewer 14.00 12.00 11.00 13.00 11.00 13.33 11.33 11.33 11.33 12.25
Solid Waste - - 6.00 10.00 8.00 9.66 9.66 9.66 9.66 10.5
Fleet Services 15.00 11.00 12.00 12.00 10.00 12.00 12.50 12.50 12.00 9.50
Insurance Fund 2.00 3.00 4.00 4.00 4.00 5.00 5.00 5.00 5.50 5.50
Total Other Functions 166.30 148.00 156.00 168.91 164.50 176.28 185.44 179.86 186.42 191.3
Total All Funds 842.40 790.20 769.00 793.17 781.70 805.67 819.22 815.04 828.85 805.88
* The City changed its fiscal year end to December 31, 2011.
Source: City of Evanston HR Division
- 148 -
CITY OF EVANSTON, ILLINOIS
Property Tax Rates per $100 - Direct and Overlapping Governments
Last Ten Levy Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
City of Evanston*1.204 1.365 1.592 1.551 1.760 1.766 1.800 1.536 1.524 1.604
Consolidated Elections 0.021 - 0.025 - 0.031 - 0.034 - 0.031 -
Cook County 0.394 0.423 0.462 0.531 0.560 0.568 0.552 0.533 0.496 0.489
Cook County Forest Preserve District 0.049 0.051 0.058 0.063 0.069 0.069 0.069 0.063 0.062 0.060
Metropolitan Water Reclamation District 0.261 0.274 0.320 0.370 0.417 0.430 0.426 0.406 0.402 0.396
North Shore Mosquito Abatement District 0.008 0.009 0.010 0.010 0.007 0.011 0.012 0.010 0.010 0.010
Evanston Township 0.042 0.046 0.011 0.010 0.053 - - - - -
Community College 535 0.140 0.160 0.196 0.219 0.256 0.258 0.271 0.231 0.232 0.246
School District 202 1.616 1.819 2.061 2.308 2.689 2.659 2.792 2.332 2.329 2.462
School District 65 2.401 2.655 2.818 3.149 3.671 3.686 3.810 3.676 3.673 3.891
Total Tax Rate for Property not in Park District
or Special Service District 6.136 6.802 7.553 8.211 9.513 9.447 9.766 8.787 8.759 9.158
Percent of Total Tax Rate Levied by City of Evanston 19.62% 20.07% 21.08% 18.89% 18.50% 18.69% 18.43% 17.48% 17.40% 17.51%
*City of Evanston rate includes General Assistance beginning in 2014. Does not include Evanston Public Library.
Source: Cook County Assessor's office
Government Unit
- 149 -
CITY OF EVANSTON, ILLINOIS
Water Sold by Type of Customer
Last Ten Fiscal Years
(in 100 cubic feet)
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
Type of Customer
Residential 2,174,255$ 2,187,244$ 1,804,433$ 2,276,492$ 2,189,588$ 2,065,980$ 2,098,160$ 1,998,740$ 2,285,759$ 2,344,636$
Industrial 13,624 14,195 11,552 14,758 12,392 11,627 10,772 21,381 12,777 16,405
Commercial 1,109,556 1,153,949 928,621 1,117,431 1,105,077 1,036,034 1,045,791 2,313,154 1,115,236 1,083,414
Government 69,229 75,308 50,129 66,561 61,908 53,732 55,485 82,066 67,547 72,062
Total 3,366,664$ 3,430,696$ 2,794,735$ 3,475,242$ 3,368,965$ 3,167,373$ 3,210,208$ 4,415,341$ 3,481,319$ 3,516,517$
Total direct rate
per 100 cubic feet 1.52$ 1.52$ 1.52$ 1.75$ 1.80$ 1.98$ 2.18$ 2.18$ 2.31$ 2.47$
* The City changed its fiscal year end to December 31, 2011.
Source: City Utilities Department
- 150 -
CITY OF EVANSTON, ILLINOIS
Water Sold by Major Customers
Last Ten Fiscal Years
2010 2011 2011*2012 2013 2014 2015 2016 2017 2018
Type of Customer
Evanston residents/businesses 5,396,739$ 5,377,297$ 4,719,084$ 6,124,221$ 5,915,560$ 6,301,307$ 6,975,785$ 6,820,350$ 7,280,260$ 7,640,457$
Village of Skokie 2,676,163 2,885,096 2,304,066 2,989,109 2,772,424 2,805,425 2,854,684 2,941,912 3,651,338 5,773,487
Northwest Water Commission 4,506,066 4,781,645 3,710,581 5,033,996 5,183,425 5,074,770 5,183,391 5,695,812 5,898,670 5,963,424
Morton Grove and Niles - - - - - - - - - 19,830
Total 12,578,968$ 13,044,038$ 10,733,731$ 14,147,326$ 13,871,409$ 14,181,502$ 15,013,860$ 15,458,074$ 16,830,268$ 19,397,198$
* The City changed its fiscal year end to December 31, 2011.
Source: City Utilities Department
- 151 -
CITY OF EVANSTON, ILLINOIS
Operating Indicators by Function/Programs
Last Ten Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
Police
Violent offenses 255 214 180 230 131 97 80 130 122 140
Property offenses 2,412 2,119 2,144 2,078 1,980 1,959 1,872 1,681 1,777 1,708
911 calls received 52,198 35,991 51,969 44,875 42,551 44,177 46,749 42,763 38,525 36,642
Fire
Emergency responses 8,566 8,917 9,063 9,330 9,373 9617 9630 10,267 10,058 10,014
Fires extinguished 154 157 157 154 129 120 99 114 90 111
Inspections 709 680 620 640 660 740 760 - 1125 1275
Other Public Works 6419
Street resurfacing (estimated miles)3.3 3.4 3.4 3.4 3.4 4.9 2.7 2.9 2.9 2.9
Parks and Recreation
Athletic field usage (hours)16,185 18,966 20,075 16,761 16,367 16,270 15,531 27,426 22,496 24,263
Picnic permits issued 431 460 437 541 445 448 404 229 371 572
Library
Volumes in collection 502,019 471,262 436,382 426,342 400,034 401,300 481,626 534,533 540,696 514,756
Total volumes borrowed 945,952 951,667 891,769 989,638 1,056,243 1,074,972 1,071,401 1,078,653 1,040,580 1,207,419
Water
New connections 28 29 16 4 - 18 9 3 5 7
Water main breaks 52 38 28 66 51 70 23 28 31 32
Average daily consumption
(millions of gallons)39.41 38.91 38.39 39.85 35.81 36.79 36.63 39.645 40.606 41.122
Peak daily consumption
(millions of gallons)58.94 57.02 65.95 69.21 56.95 48.91 50.59 55.084 58.047 55.291
Note: Indicators are not available for general government functions
- 152 -
CITY OF EVANSTON, ILLINOIS
Capital Assets Statistics by Function
Last Ten Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
Police
Number of stations 1 1 1 1 1 1 1 1 1 1
Budgeted sworn officers 165 164 164 164 164 164 164 165 165 165
Fire Stations 5 5 5 5 5 5 5 5 5 5
Other Public Works
Streets (miles)147 147 147 147 147 147 147 147 147 147
Streetlights 5,641 5,641 5,641 5641 5641 5641 5641 5736 5718 5736
Parks and Recreation
Acreage 290 290 290 290 290 290 290 290 290 290
Playgrounds 51 51 51 51 51 51 51 51 51 60
Baseball/softball diamonds 18 18 18 18 18 18 18 18 18 13
Soccer/football fields 27 27 27 27 27 27 27 27 27 27
Community centers 5 5 5 5 5 5 6 6 6 7
Water
Water mains (miles)157 157 157 157 157 157 156.4 155.6 155.3 155.8
Fire hydrants 1,399 1,399 1,399 1,399 1,399 1,477 1,484 1,490 1,502 1508
Storage capacity (millions of gallons)22 22 22 22 22 22 22 22 22 22
Note: No capital asset indicators are available for the general government or library function
Source: Various city departments
- 153 -
COMPLIANCE SECTION
1415 West Diehl Road, Suite 400
Naperville, IL 60563
630.566.8400
INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH
STATE OF ILLINOIS PUBLIC ACT 85-1142
The Honorable Mayor
Members of the City Council
City of Evanston, Illinois
We have examined management’s assertion that the City of Evanston, Illinois (the City) complied
with the provisions of subsection (q) of Section 11 -74.4-3 of the Illinois Tax Increment
Redevelopment Allocation Act (Illinois Public Act 85 -1142) during the year ended December 31,
2018. As discussed in that representation letter, managem ent is responsible for the City’s compliance
with those requirements. Our responsibility is to express an opinion on management’s assertion
about the City’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants . Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management’s assertion
about compliance with the specified requir ements is fairly stated, in all material respects. An
examination involves performing procedures to obtain evidence about whether management’s
assertion is fairly stated, in all material respects. The nature, timing, and extent of the procedures
selected depend on our judgement, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not
provide a legal determination on the City’s compliance with statutory requirements.
In our opinion, management’s assertion that the City of Evanston, Illinois, complied with the
aforementioned requirements for the year ended December 31, 2018, is fairly stated in all material
respects.
Naperville, Illinois
June 27, 2019
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