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HomeMy WebLinkAbout2022 Annual Comprehensive Financial Report City of Evanston, Illinois _________________________________________________________________ Annual Comprehensive Financial Report For the Year Ended December 31, 2022 CITY OF EVANSTON, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2022 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-xiii FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT .................................................................... 1-4 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ....................... 5-6 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 ............................................................................... 7-8 Statement of Activities ................................................................................... 9-10 Fund Financial Statements Governmental Funds Balance Sheet ............................................................................................. 11-12 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position ................ 13 Statement of Revenues, Expenditures, and Changes in Fund Balances .... 14 Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities .................................................. 15 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 .......................................................................... 16-17 Statement of Revenues, Expenses, and Changes in Net Position .............. 18 Statement of Cash Flows ........................................................................... 19-20 Fiduciary Funds Statement of Fiduciary Net Position .......................................................... 21 Statement of Changes in Fiduciary Net Position ....................................... 22 Notes to Financial Statements ............................................................................. 23-93 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund .................................................................................................. 94 ARPA Fund .................................................................................................... 95 Schedule of Changes in the Employer’s Total OPEB Liability and Related Ratios Other Postemployment Benefits Plan ................................................................. 96 Schedule of Employer Contribution Illinois Municipal Retirement Fund ............................................................... 97 Police Pension Fund ....................................................................................... 98 Firefighters' Pension Fund .............................................................................. 99 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund ................................................................ 100-101 Police Pension Fund ....................................................................................... 102-103 Firefighters’ Pension Fund ............................................................................. 104-105 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 ....................................................................................... 106 Firefighters’ Pension Fund ............................................................................. 107 Notes to Required Supplementary Information .................................................. 108 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual ................................................... 109-112 Schedule of Expenditures - Budget and Actual .............................................. 113 General Obligation Debt Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual .......................................... 114 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................... 115-118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................... 119-122 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund ...................................................................................... 123 Emergency Telephone System Fund .............................................................. 124 Affordable Housing Fund ............................................................................... 125 HOME Fund ................................................................................................... 126 Community Development Block Grant Fund ................................................. 127 Schedule of Expenditures - Budget and Actual (Budgetary Basis) Community Development Block Grant Fund ................................................. 128 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Loan Fund ............................................................ 129 Special Service District No. 9 Fund ............................................................... 130 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 (Continued) Reparations Fund ............................................................................................ 131 Sustainability Fund ......................................................................................... 131 Good Neighbor Fund ...................................................................................... 133 General Assistance Fund ................................................................................ 134 Capital Improvements Fund ........................................................................... 135 Crown Construction Fund .............................................................................. 136 Crown Maintenance Fund .............................................................................. 137 Special Assessment Capital Projects Fund ..................................................... 138 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Debt Service Funds ......................................................................................... 139-142 ENTERPRISE FUNDS Water Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ........................................................................................ 143 Schedule of Operating Revenues - Budget and Actual Operation and Maintenance Account ........................................................... 144 INTERNAL SERVICE FUNDS Combining Statement of Net Position ................................................................. 145 Combining Statement of Revenues, Expenses, and Changes in Net Position .................................................................................... 146 Combining Statement of Cash Flows .................................................................. 147-148 COMPONENT UNIT - PUBLIC LIBRARY Governmental Funds Statement of Net Position and Combining Balance Sheet ............................. 149-150 Statement of Activities and Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 151-152 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) Library Operating Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ............................................................... 153 STATISTICAL SECTION Net Position by Component .......................................................................................... 154-155 Changes in Net Position ................................................................................................ 156-159 Fund Balances of Governmental Funds ........................................................................ 160-161 Changes in Fund Balances of Governmental Funds ..................................................... 162-163 Equalized Assessed Value and Actual Value of Taxable Property .............................. 164 Principal Property Taxpayers ........................................................................................ 165 Property Tax Levies and Collections ............................................................................ 166 Ratios of General Bonded Debt Outstanding ................................................................ 167 Ratios of Outstanding Debt by Type ............................................................................ 168 Direct and Overlapping Governmental Activities Debt ................................................ 169 Legal Debt Margin ........................................................................................................ 170 Pledged-Revenue Coverage .......................................................................................... 171 Principal Employers ...................................................................................................... 172 Demographic and Economic Statistics ......................................................................... 173 Full-Time Equivalent City Government Employees by Function ................................ 174 Property Tax Rates per $100 - Direct and Overlapping Governments ......................... 175 Water Sold by Type of Customer (in 100 cubic feet) ................................................... 176 Water Sold by Major Customers................................................................................... 177 Operating Indicators by Function/Program .................................................................. 178 Capital Assets Statistics by Function ............................................................................ 179 INTRODUCTORY SECTION - i - CITY OF EVANSTON Principal Officials December 31, 2022 ______________________________________________________________________ LEGISLATIVE Daniel Biss, Mayor Clare Kelly 1st Ward Krissie Harris 2nd Ward Melissa A. Wynne 3rd Ward Jonathan Nieuwsma 4th Ward Bobby Burns 5th Ward Thomas M. Suffredin 6th Ward Eleanor Revelle 7th Ward Devon Reid 8th Ward Juan Geracaris 9th Ward Stephanie Mendoza, City Clerk EXECUTIVE Luke Stowe, City Manager David Stoneback, Deputy City Manager Hitesh Desai, CFO / Treasurer ADMINISTRATIVE Interim Administrative Services Director Michael Rivera Interim Chief Information Officer Dmitry Shub Health and Human Services Director Ikenga Ogbo Interim Community Development Director Sarah Flax Parks, Recreation, & Community Services Director Audrey Thompson Corporation Counsel Nicholas Cummings Public Works Agency Director Edgar Cano Police Chief Schenita Stewart Fire Chief Paul Polep Interim Library Director Heather Norborg - ii - City of Evanston Organizational Chart Residents Mayor City Council City Clerk Police FireCommunity De velopment Public Works Agency Health and Human Services Parks, Recreation & Community Services Law Administrative Services Deputy City Manager Assistant City Manager CFO/City Treasurer Boards and Commissions Library Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Evanston Illinois For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 Executive Director/CEO - iii - City Manager’s Office 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.866.5095 www.cityofevanston.org - iv - July 28, 2023 The Honorable Mayor Daniel Biss, Members of the City Council City of Evanston, Illinois INTRODUCTION The Annual Comprehensive Financial Report (Annual Report) of the City of Evanston (City) for the fiscal year ended December 31, 2022, is hereby submitted. The Annual report is prepared by the City’s Finance Division in accordance with the financial reporting principles and standards set forth by the Governmental Accounting Standards Board (GASB). Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of operations of the various funds and capital assets of the City. All disclosures needed to enable the reader to understand the City's financial activities have been included. This report consists of management’s representations concerning the finances of the City of Evanston for the period of January 1, 2022, to December 31, 2022. Management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient, reliable information for the preparation of the City of Evanston’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP) within the United States of America. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 as amended and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - v - structure and compliance with applicable laws and regulations, is to be presented in a separate single audit report. The attached report includes all the funds and capital assets of the City and its component unit, the Evanston Library. The Town of the City of Evanston (the Township) has been previously presented as a separate legal entity which administered General Assistance for food, shelter and medical needs. Effective May 1, 2014, the City of Evanston assumed all the responsibility of providing the services that were previously provided by the Township. City audits after 2014 include the functions of the Township. Library activity numbers are shown separately as a discrete component unit based on an ordinance passed by the City Council on March 10, 2012 giving the Library independence in running day to day operations. The Library has a separate Board whose members are appointed by the Mayor. The City’s financial statements have been audited by Sikich, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Evanston for the fiscal year ended December 31, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates by management, and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2022, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF EVANSTON The City: The City of Evanston constitutes many communities, perspectives, and qualities as a Chicago suburb with a major university, urban center, and lakefront. Evanston has apartments, condominiums, and student housing; its residents are commuters and locally employed workers; its downtown is prospering, and neighborhood commercial centers are also stable. It is a part of the Chicago-land economy and has a vigorous commercial and professional economy of its own. A population of approximately 78,000 is diverse by race, religion, age, education, economics, and occupation. With 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - vi - 10,000 people per square mile, Evanston has double the population density of the average North and Northwest suburb, and approximately half the density of Chicago. The City has over 260 acres in 75 parks and 5 beaches. Evanston is contiguous with Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It borders the north shore communities of Skokie and Wilmette. In 1863, the Village of Evanston was incorporated as a town, and after several annexations in 1892, the town became a City. The City’s southern boundary of approximately eight square miles was established with the City of Chicago and the present City limits. The City also has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University, aptly named to serve the Northwest Territory. The University first platted the village which surrounded it. The continued vitality of the University and the cooperative relationship between the City and University adds to the total Evanston community. The Government: The City is a home rule municipality under the Illinois Constitution. As such, it has no tax rate or debt limits imposed by Illinois statute, nor is it required to conduct a referendum to authorize the increase of debt or the imposition of real estate property taxes. The City has a Council/Manager form of government with an elected Mayor. The Mayor is elected to a four-year term. Each Alderman represents one of nine wards and are elected to terms of four years. The City Council is organized into five standing committees: Administration and Public Works, Human Services, Planning and Development, Rules, and Referrals. The City Council has also established several special committees, commissions and advisory boards. The City Manager is the Chief Executive Officer of the City and is responsible for the management of all City operations under the direction of the City Council. The City Manager appoints directors and supervises the City’s 10 departments. The City provides a broad range of municipal services, including police and fire protection, streets and parking, water and sewer service, public libraries, health services, lakefront beaches, parks and recreation activities, cultural events, and community and economic development activities. Schools are provided by separate school districts which are governed by elected school boards. A portion of the City is served by the Ridgeville Park District. Wastewater treatment is provided by the Metropolitan Water Reclamation District. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - vii - Budget Process: The City’s fiscal year 2023 began on January 1, 2023. The City Manager submitted to the City Council a proposed operating budget in October 2022 for the fiscal year 2023 commencing the following January 1. The City’s budget team started the budget process for fiscal year 2023 in late summer followed by meeting with all departments for their individual budgets. On December 12, 2022, the Council adopted Ordinance 99-O-22 approving the FY 2023 budget. The City operates under the Illinois Budget Act, adopting a budget by an ordinance. All Funds are included in the Ordinance. The City is committed to long-term financial planning. The City closely monitors factors that contribute to long-term financial stability, including, bond ratings, debt ratios, and equalized assessed valuation. The City is also pursuing strategies to expand the City's revenue base and diversify revenue sources. The City Manager is authorized to transfer budgeted amounts between departments within any fund (such as the General Fund). However, any revisions that increase the total expenditures of any fund must be approved by the City Council. Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. For purposes of preparing the General Fund schedule of revenues (budget and actual), GAAP revenue and expenditures have been adjusted to the budgetary basis. The budgets of the governmental type funds are prepared on a cash basis. The Annual Comprehensive Financial Report (ACFR) of the City presents expenditures and revenues on both a GAAP basis and a budgetary basis for comparison. Fund Accounting: The City uses funds to report on both its financial position and results of its operations. Fund accounting is designated to demonstrate legal compliance and to aid in financial management by segregating transactions related to certain City functions or activities. Each fund is a separate, self-balancing accounting entity. In the City, there are three categories of funds: Governmental, Proprietary and Fiduciary. Governmental funds are used to account for all or most of the City’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of capital assets (capital project funds), and the servicing of general long- term debt (debt service funds). The General Fund is used to account for all activities of the City not accounted for in other funds. In the fiscal year 2022 budget, the City projected that 32.7% ($117.9 million-including transfers) of all City expenditures will occur in the General Fund. The City maintains two different types of proprietary funds. The Enterprise Funds (Water, Parking, Solid Waste Fund and Sewer) are operated and budgeted on a full accrual basis. Expenditures are recognized when a commitment is made, and revenues are recognized when they are obligated to the City (For example, water user fees are recognized as revenue when bills are produced). Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its risk management (insurance) operations. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - viii - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. These funds consist of resources to provide retirement benefits to the City’s public employees. Financial Control Procedures: The City reports financial results based on generally accepted accounting principles as promulgated by the GASB. The accounts of the City are divided into separate self-balancing funds comprised of its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. The City’s expenditures are monitored on a regular basis by the Finance Department. Disbursements are made by fund and only if expenditures are within the authorized budget. MAJOR INITIATIVES – FISCAL YEAR 2023 Following are annual goals and major initiatives by department as a part of budget document preparation. The City Manager’s Office will: (1) Continue to implement Language Access Guidelines city-wide. (2) Continue to implement the Reparations Program and Policy Development. (3) Implement programs under the American Rescue Plan (ARPA). (4) Develop Comprehensive Civic Engagement Policy and Plan. (5) Implement the City’s Participatory Budgeting Program. (6) Implement the Guaranteed Income Pilot Program. (7) Continue to implement the Climate Action and Resilience Plan. (8) Continue to implement recommendations of the Environmental Justice Resolution. (9) Implement One-Stop Shop for Affordable Housing Retrofits. (10) Develop forecasting tools to assist with City budget development and planning. The Law Department will: (1) Work with IT and the Collector’s Office to bring the application and payment process for liquor licensing to an online platform. (2) In conjunction with the City Policy Coordinator, monitor proposed and potential state laws that can or will have an impact on the City, its operations and residents. (3) In conjunction with the City Manager’s Office, conduct a comprehensive review of the City Code, looking for conflicts within the Code and with state law. The Administrative Services Department will: (1) Expand use of the VueWorks program in order to better plan maintenance, replacements, and improvements at City facilities in a manner that is proactive rather than reactive. (2) Review a Parking Study report prepared by a consultant and bring forward any thoughtful changes to City Council for review. (3) Continue to expand training for all City employees, ensuring all staff are working at the best of their abilities to provide services for the City. (4) Continue to work 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - ix - on expanding cyber security ensuring City assets are kept safe and continue to work on the City’s website ensuring accessibility. (5) Review the Fleet Electrification Study and begin to implement in a phased manner and pace that is financially responsible while still reaching our CARP goals. The Community Development Department will: (1) Implement updated permit software. (2) Initiate new Comprehensive Plan process. (3) Implement programs and projects under the American Rescue Plan Act (ARPA). (4) Implement projects and programs to address homeless & unstably housed with HOME-ARPA. (5) Investigate, track, monitor and inspect vacant buildings and rental properties. (6) Enhance our communication with landlords and property managers. (7) Implement landlord tenant and inclusionary housing waitlist programs. (8) Coordinate the CTA Purple Line Modernization Program in Evanston. (9) Implement ADA bus stop conversion project and coordinate new bus shelter program. (10) Continue and refine social services funding process to address inequities in access to services. (11) Assess and amend the inclusionary housing ordinance to respond to improve its effectiveness. (12) Expand tools to address the housing needs of low-, moderate-, and middle-income residents. The Police Department will: (1) Fill vacant positions with competent, qualified personnel. (2) Negotiate labor agreements with the three unions represented in the Evanston Police Department. (3) Research development and implementation of a new 911 Continuity of Operations Center during system failure in case of needed backup. (4) Final implementation of Next-Generation 911 service. The Fire Department will: (1) Host an Active Shooter Incident Training for Emergency Management leaders in the Northern Illinois area. (2) Host Fire Prevention Week events in October. (3) Replace and update major medical equipment from Stryker Corporation. (4) Transition Lifeguards from the Parks and Recreation Department to Fire. The Health and Human Services Department will: (1) Continue to prioritize the response to COVID-19 in the community including schools, facilities housing high-risk populations such as in our long-term care facilities and congregate settings. (2) Create a clearinghouse of data to better measure health equity achievements. (3) Continue with the integration process of the Senior Service and Youth and Young Adult Divisions into the Health and Human Services Department to facilitate a holistic and equitable social services approach for the community. (4) Incorporate the City’s EPLAN into City operations and goals thereby using it as a tool to make significant positive impacts to equity and disparity issues in the community. (5) Expand Workforce Development staffing and programming. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - x - The Public Works Agency will: (1) Complete construction of the Main Street Improvements project. (2) Complete Green Bay Road water main replacement including Central Street under the viaduct. (3) Complete Ridge Avenue Traffic Signal Safety Improvements. (5) Complete design of the animal shelter improvements and skate park installation and begin construction. (6) Begin construction of the new raw water intake. (7) Replace approximately 65 light fixtures in street light poles with new LED fixtures in conformance with the Street Light Master Plan. (8) Begin a review of all solid waste facility needs with the City Council to determine how best to address some of the City’s aging buildings. (10) Replace ADA accessible beach paths at the three remaining beaches (Lighthouse, Lee, South Boulevard). The Parks, Recreation and Community Services will: (1) Implement new programming through year-round outdoor recreation programs. (2) Continue implementation of free Starlight Concert and Movie series in all nine wards with an increase in musical performances. (3) Explore improvements to RecTrac registration software. (4) Revival of special events through addition of a Special Events Coordinator, expanding events throughout the City’s nine wards. (5) Continue to increase diversity of recreational programs offered including programs that are more inclusive and accessible. Library operations are shown separately in the City’s Annual Comprehensive Financial Report as a discrete component unit. The Evanston Public Library promotes the development of independent, self-confident, and literate citizens through the provision of open access to cultural, intellectual, and informational resources for all ages. FACTORS AFFECTING FINANCIAL CONDITION The following are factors which could give a broader context to the financial information contained in this Annual Report. Local Economy: Given the uncertainty of the COVID-19 pandemic from 2020 through 2021, the City took steps to address revenue losses, contain spending and focus on the public health response to ensure the health and safety of Evanston residents. During this time, the City implemented several measures to mitigate the loss of revenues including layoffs, implementation of a hiring freeze, deferral of wage increases, and furloughs. The steady recovery of the economy that started in 2021 continued in 2022 thanks in large part to a return of in-person classes at Northwestern University, a strong local job market, a strong housing market, and reinstitution of most City programming that had been deferred during the pandemic. Most major City revenues including Sales Taxes, State Income Taxes, Real Estate Transfer Taxes, Personal Property Replacement Taxes, Amusement Taxes, Natural Gas Utility Taxes, Recreation Program Fees, and Hotel Taxes exceeded budget in 2022 with many finishing at all-time highs. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - xi - While these revenue results are largely due to economic recovery, it is also a result of high rates of inflation. While inflation stood at 5.3% in October 2021, it peaked at 9.1% in July 2022, the highest rate in nearly 40 years. The index for all items less food (groceries and restaurants) and energy rose 5.7% over the last year. Energy prices rose 36.5%, largely the result of increases in gasoline and utility gas service, while food prices increased by 10.6%. In 2022, the City also received its second installment of American Rescue Plan Act (ARPA funding. The City received half of its $43.1 million in May 2021 with the final payment in June 2022. These funds have been used for eligible projects including supporting public health expenditures, addressing negative economic impacts, providing premium pay for essential workers, and investing in water and sewer infrastructure. Roughly $40 million of the $43.1 million has been committed to date by the City Council. Overall, General Fund expenditures were at 96% of budgeted expenditures with the City Manager’s Office, Administrative Services Department, Health and Human Services Department, and Public Works Department reporting higher than budgeted expenditures for FY 2022; while the Community Development Department, Parks and Recreation Department, and Police Department reporting lower than budgeted numbers. As noted, revenues finished the year at 123% of budget largely due to inflation. Overall, revenues in the General Fund finished at $25.5 million higher than budgeted numbers. During 2022, the General Fund generated an operating surplus of $27.4 million, adding to current reserves which are currently in excess of the minimum 16.66% required by the City’s fund balance policy. For the 2023 Budget, the City continued its focus on maintaining core services and ensuring the continued health and safety of residents. On October 10, 2022, staff presented the proposed budget to the City Council. The council deliberated on the budget at several City Council meetings before approval on December 12, 2022. As part of the adopted budget, the City utilized available General Fund surplus to add 35 new staff positions and to transfer $4.5 million in funding beyond the Public Safety Pension Levy to the Public Safety Pension Funds. With all three of the City’s union contracts expiring at the end of 2022, the City also budgeted 4.5% wage increases for all employees with actual amounts to be determined based on the outcome of those negotiations. The City Council also approved one of the largest Capital Improvement Plans in City history at $92.1 million with the largest project being the replacement of a 60-inch water intake pipeline that extends one mile in Lake Michigan. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org - xii - Moving into 2023, most revenues continue to remain at the same level as 2022. However, there are signs that inflation and consumer demand are beginning to level out. After 10 consecutive meetings that led to interest rate increases, the Federal Reserve held rates at their June 2023 meeting. As of May 2023, the CPI was at 3.3%, slightly above the federal government target of 2%. Some revenues like the Real Estate Transfer Tax have been negatively impacted by the hikes in interest rates as real estate sales have slowed from 2021 and 2022 levels. Additionally, the State budget that was passed in 2022 allocated additional State Income Taxes to the City of Evanston, but subsequently reduced the local share of Personal Property Replacement Taxes (PPRT). One additional item the City will need to monitor in 2023 will be the impact of inflation on the cost of capital improvement projects as several have come in well over the amount budgeted. Fortunately, the City has strong reserves given the performance of revenues in 2021 and 2022, but attention will need to be given as contracts are sent out to bid. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended December 31, 2021. To be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another year. In addition, the City also received the GFOA's Award for Distinguished Budget Presentation for its annual 2023 budget. To qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories, including policy documentation, financial planning, and organization. The City has been getting this GFOA budget award for many years. We acknowledge the contributions and excellent work of Andy Villamin, Accounting Manager and his staff in preparing the financial statements. Appreciation is also extended to all department directors and other staff who contributed to the preparation of this report. We also express gratitude to the Mayor’s Office and Members of City Council for their direction and support in planning and conducting the City’s financial affairs. 2100 Ridge Avenue Evanston, Illinois 60201-2798 T 847.328.2100 TTY 847.866.5095 www.cityofevanston.org Respectfully submitted, _______________________________ Hitesh Desai Chief Financial Officer/Treasurer ______________________________ Luke Stowe City Manager - xiii - FINANCIAL SECTION 1415 West Diehl Road, Suite 400 Naperville, IL 60563 630.566.8400 INDEPENDENT AUDITOR’S REPORT The Honorable Daniel Biss, Mayor and Members of the City Council City of Evanston, Illinois Report on the Audit of the Financial Statements Opinions 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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Evanston, Illinois, as of December 31, 202 2, and the respective changes in financial position, and, where applicable, cash flows thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. Change in Accounting Principle The City adopted GASB Statement No. 87, Leases, which established a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Our opinion is not modified with respect to these matters. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under these standards are further described in the Auditor ’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial statements of the Evanston Public Library were not audited in accordance with Government Auditing Standards. - 1 - - 2 - Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • Exercise professional judgment and maintain professional skepticism throu ghout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, a s well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. - 2 - - 3 - We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 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 required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with manag ement’s responses to our inquiries, the basic financial statements , and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City ’s basic financial statements. The combining and individual fund financial statements and schedules 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 proc edures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. - 3 - - 4 - In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the ot her information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Governmental Auditing Standards, we have also issued our report dated July 28, 2023 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 n ot to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards in considering the City’s internal control over financial reporting and compliance. Naperville, Illinois July 28, 2023 - 4 - 1415 West Diehl Road, Suite 400 Naperville, IL 60563 630.566.8400 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor Members of the City Council City of Evanston, Illinois We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, th e financial statements of the governmental activities, business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Evanston, Illinois (City) as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated July 28, 2023. The financial statements of Evanston Public Library were not audited in accordance with Government Auditing Standards and accordingly this report does not include reporting on internal control over financial reporting or instances of reportable noncompliance associated with the Evanston Public Library. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the finanicial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. - 5 - 2 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given th ese limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which c ould have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report This purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Naperville, Illinois July 28, 2023 - 6 - GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS MD&A 1 MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2022 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 iv of this report. FINANCIAL HIGHLIGHTS A.The City's net position increased by $49,415,516 from the prior fiscal year. The governmental net position increased by $41,075,163 or 57.2% from the prior period and the business-type activities net position increased by $8,340,353 or 2.7% from the prior period. B.The governmental activities revenue increased by $16,525,068 or 10.1% from the prior period principally due to increase in taxes collected and funding from other governmental agencies. The expenses increased by $20,032,207 or 16.2% principally due to an increase in Public Safety and General management expenses. C.The business-type activities revenue increased by $1,887,260 or 4.0% principally due to an increase in charges for services. The expenses decreased by $159,511 or .45% from the prior period due to slight decreases in water and sewer expenses. D.The total cost of all City programs increased by $19,872,696 or 12.5%. This increase was mainly attributable to an increase in public safety related expenses. E.Total assets of the City increased by $88,805,838 mainly due to increase in cash, investments and pension assets; while total liabilities increased by $82,918,653. F.Deferred outflows and inflows resources of the city had a net deferred inflows decrease of $43,528,331 principally due to a decrease in the governmental net deferred inflows and implementation of GASB S87 Leases. 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 discretely presented component unit beginning in 2013. 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 financial 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, revenues 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, solid waste services, 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 7-10 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. MD&A 2 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. 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 11 – 15 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 16 - 20 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 21 - 22 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 23 of this report. MD&A 3 MD&A 4 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 94 – 108 of this report. 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 115. Additional information on capital assets and long-term debt can be found on page 42 and 50, respectively. Financial Analysis of the City as a Whole The City's combined net position increased by $49,415,516 from $237,728,798 to $287,144,314. STATEMENT OF POSITION The City's total revenues increased by $ 18,412,328 or 8.8%. The City's total expenses for all programs increased by $19,872,696 or 12.5%. Business-type activity revenues increased by $1,887,260 in the current fiscal period mainly due to an increase in charges for services. Business-type activity expenses decreased by $159,511, while Governmental activity expenses increased by $20,032,207 due to increased costs in public safety. The list of revenues and expenses can be found in the table below. The governmental activities and business-type activities saw net position balance increases of $41,075,163 and of $8,340,353, respectively. 2022 2021 2022 2021 2022 2021 Current and Other Assets 248,350,460$ 182,796,690$ 37,514,732 32,743,095 285,865,192 215,539,785 Capital Assets 228,756,629 224,571,971 380,930,569 366,634,796 609,687,198 591,206,767 Total Assets 477,107,089 407,368,661 418,445,301 399,377,891 895,552,390 806,746,552 Deferred Outflows 55,577,584 25,672,525 4,935,510 4,858,437 60,513,094 30,530,962 532,684,673 433,041,186 423,380,811 404,236,328 956,065,484 837,277,514 Long-Term Liabilities 422,853,966 370,079,055 83,423,489 84,736,446 506,277,455 454,815,501 Other Liabilities 53,440,394 28,058,982 9,655,666 3,580,379 63,096,060 31,639,361 Total Liabilities 476,294,360 398,138,037 93,079,155 88,316,825 569,373,515 486,454,862 Deferred Inflows 87,065,923 106,653,922 12,481,732 6,439,932 99,547,655 113,093,854 Total Liabilities and Deferred Inflows 563,360,283 504,791,959 105,560,887 94,756,757 668,921,170 599,548,716 Net Investment in Capital Assets 80,017,854 69,635,907 296,945,278 289,164,675 376,963,132 358,800,582 Restricted 62,604,468 23,472,163 9,267,670 - 71,872,138 23,472,163 Unrestricted (Deficit) (173,297,932) (164,858,843) 11,606,976 20,314,896 (161,690,956) (144,543,947) Restatement - - - - - - Total Net Position (30,675,610)$ (71,750,773) 317,819,924 309,479,571 287,144,314 237,728,798 Governmental Activities Business-type Activities Total Primary Government 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 2022 2021 2022 2021 2022 2021 Revenue Program Revenues: Charges for services 32,625,387$ 26,906,127$ 46,776,641 44,332,669 79,402,028 71,238,796 Operating grants and - - - contributions 9,913,241 10,066,887 9,913,241 10,066,887 Capital grants and - - - contributions 936,608 4,275,024 936,608 4,275,024 General Revenues:- - - Sales taxes 23,443,235 21,497,119 23,443,235 21,497,119 Property taxes 52,498,104 53,268,947 1,332,500 1,332,500 53,830,604 54,601,447 Utility taxes 6,878,514 6,084,133 6,878,514 6,084,133 Income taxes 12,826,057 10,141,121 12,826,057 10,141,121 Other 39,200,596 30,818,051 - 595,906 39,200,596 31,413,957 Investment income 1,334,450 73,715 (92) (39,286) 1,334,358 34,429 Total Revenue 179,656,192 163,131,124 48,109,049 46,221,789 227,765,241 209,352,913 Expenses General management and support 22,825,409 19,391,474 - 22,825,409 19,391,474 Public safety 70,097,181 58,492,344 - 70,097,181 58,492,344 Public works 20,711,786 16,860,988 - 20,711,786 16,860,988 Health and human - - resources development 3,158,454 3,969,841 - 3,158,454 3,969,841 Recreation and cultural - - - opportunities 11,098,493 9,147,647 - 11,098,493 9,147,647 Housing and economic - - - development 10,317,825 11,046,288 - 10,317,825 11,046,288 Interest 5,161,464 4,429,823 - 5,161,464 4,429,823 Water - 14,562,608 14,561,520 14,562,608 14,561,520 Sewer 6,385,682 6,706,402 6,385,682 6,706,402 Solid Waste 5,148,518 5,475,571 5,148,518 5,475,571 Motor vehicle parking 8,882,305 8,395,131 8,882,305 8,395,131 system - - - - - - Total Expense 143,370,612 123,338,405 34,979,113 35,138,624 178,349,725 158,477,029 Increase (decrease) in net position before transfers 36,285,580 39,792,719 13,129,936 11,083,165 49,415,516 50,875,884 Transfers 4,789,583 2,269,571 (4,789,583) (2,269,571) - - Increase/(Decrease) in Net Position 41,075,163 42,062,290 8,340,353 8,813,594 49,415,516 50,875,884 Net Position - Beginning (71,750,773) (113,813,063) 309,479,571 300,665,977 237,728,798 186,852,914 Change in accounting principle - - - - - - Net Position - Beginning, Restated (71,750,773) (113,813,063) 309,479,571 300,665,977 237,728,798 186,852,914 Net Position - Ending (30,675,610)$ (71,750,773) 317,819,924 309,479,571 287,144,314 237,728,798 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 $91,512,062 as of December 31, 2022 which includes $103,062 non-spendable, $22,962,476 restricted, $11,106,839 assigned and $57,339,685 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 11 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 $27,452,384 with actual revenue of $137,585,695 and expenditures of $116,316,048. The City reported an increase in fund balance mainly due to some of the major revenues coming significantly higher than budgeted amounts due to inflation. Starting FY 2016 the Police and Fire pension employer contributions 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 $513,238 from $1,452,572 to $1,965,810. Combined Nonmajor Governmental Funds Combined nonmajor fund balances totaled $27,891,876, a decrease of $10,483,422 from prior period of $38,375,298. Non-major funds with surpluses for the fiscal year include Motor Fuel Tax, Emergency Telephone, Affordable Housing, Community Dev Loan, SSD #9, Sustainability, General Assistance, Crown Construction, Chicago-Main, SSD #6, SSD #7, SSD #8, and Dempster-Dodge. Nonmajor funds with deficits for the period include Home, CDBG, Reparations, Good Neighbor, West-Evanston, Howard- Ridge, Five Fifths, Capital Improvements, Crown Maintenance, and Special Assessment. 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 $8,340,353 in the net position. The Water Fund reported the highest increase in the amount of $4,233,008. The Solid Waste Fund added $2,051,273 to the net position during the year. The Sewer Fund reported an increase of $2,606,877, while Parking Fund reported a decrease of $550,805. It should also be noted that the Water and Sewer Funds carry substantial debt levels, although Parking and Solid Waste Funds have lesser debts. MD&A 7 Internal Service Funds The City's combined internal service fund’s net position increased by $4,144,923 from a $3,375,696, as of January 1, 2022 to a net position of $7,520,619 as of December 31, 2022. The increase in net position can be attributed to a decrease in liabilities in the Insurance Fund, which continues to improve. General Fund Highlights Total revenues for the General Fund were $137,585,695 while total expenditures were $116,316,048. Overall General Fund revenue came in higher than budget by $25,506,614. Total expenditures in the General Fund were lower than budgeted amounts by $4,268,275. The actual net surplus of $27,452,384 was supplemented by $6,182,737 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, 2022, were $609,687,198. The governmental funds capital assets had a net increase of $4,184,658, while business type capital assets increased by $14,295,773. Overall, capital assets increased by 3.1% for the City as a whole. The net increase in 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, 2022, the City had outstanding total general obligation bonded debt of $171,823,118 of which $33,336,712 was for business type activities to be paid for by the City's Water, Solid Waste and Sewer Funds. Overall general obligation bonded debt represents a $11,175,294 decrease from 2021. The City's general obligation debt service principal payments for 2022 totaled $11,175,294. During the current year, the City did not issue 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 7 in the Notes to the Financial Statements. Bond Ratings The City's 2022 General obligation bonds are rated AA (stable outlook) by S&P 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. Local Economy: The steady recovery of the economy that started in 2021 continued in 2022 thanks in large part to a return of in-person classes at Northwestern University, a strong local job market, a strong housing market, and reinstitution of most City programming that had been deferred during the pandemic. Most major City revenues including Sales Taxes, State Income Taxes, Real Estate Transfer Taxes, Personal Property Replacement Taxes, Amusement Taxes, Natural Gas Utility Taxes, Recreation Program Fees, and Hotel Taxes exceeded budget in 2022 with many finishing at all-time highs. MD&A 8 While these revenue results are largely due to economic recovery, it is also a result of high rates of inflation. While inflation stood at 5.3% in October 2021, it peaked at 9.1% in July 2022, the highest rate in nearly 40 years. The index for all items less food (groceries and restaurants) and energy rose 5.7% over the last year. Energy prices rose 36.5%, largely the result of increases in gasoline and utility gas service, while food prices increased by 10.6%. In 2022, the City also received its second installment of American Rescue Plan Act (ARPA funding. The City received half of its $43.1 million in May 2021 with the final payment in June 2022. These funds have been used for eligible projects including supporting public health expenditures, addressing negative economic impacts, providing premium pay for essential workers, and investing in water and sewer infrastructure. Roughly $40 million of the $43.1 million has been committed to date by the City Council. Overall, General Fund expenditures were at 96% of budgeted expenditures with the City Manager’s Office, Administrative Services Department, Health and Human Services Department, and Public Works Department reporting higher than budgeted expenditures for FY 2022; while the Community Development Department, Parks and Recreation Department, and Police Department reporting lower than budgeted numbers. As noted, revenues finished the year at 123% of budget largely due to inflation. Ov erall, revenues in the General Fund finished at $25.5 million higher than budgeted numbers. During 2022, the General Fund generated an operating surplus of $27.4 million, adding to current reserves which are currently more than the minimum 16.66% required by the City’s fund balance policy. For the 2023 Budget, the City continued its focus on maintaining core services and ensuring the continued health and safety of residents. On October 10, 2022, staff presented the proposed budget to the City Council. The council deliberated on the budget at several City Council meetings before approval on December 12, 2022. With all three of the City’s union contracts expiring at the end of 2022, the City also budgeted 4.5% wage increases for all employees with actual amounts to be determined based on the outcome of those negotiations. The City has strong reserves given the performance of revenues in 2021 and 2022, but attention will need to be given as contracts are finalized. Moving into 2023, most revenues continue to remain at the same level as 2022. However, there are signs that inflation and consumer demand are beginning to level out. After 10 consecutive meetings that led to interest rate increases, the Federal Reserve held rates at their June 2023 meeting. As of May 2023, the CPI was at 3.3%, slightly above the federal government target of 2%. Some revenues like the Real Estate Transfer Tax have been negatively impacted by the hikes in interest rates as real estate sales have slowed from 2021 and 2022 levels. Additionally, the State budget that was passed in 2022 allocated additional State Income Taxes to the City of Evanston, but subsequently reduced the local share of Personal Property Replacement Taxes (PPRT). Contacting the City's Financial Management This financial report is designed to provide a general overview of the City's finances, comply with finance- related laws and regulations, and demonstrate the City's commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City Manager’s Office, Finance Division at the City of Evanston, 2100 Ridge Avenue, Evanston, Illinois 60201, Telephone 847-448-8082, or access the website at www.cityofevanston.org. BASIC FINANCIAL STATEMENTS Component Unit Governmental Business-Type Evanston Public Activities Activities Total Library ASSETS Cash and equivalents 55,461,423$ 1,534,028$ 56,995,451$ 7,326,331$ Investments 63,803,631 9,122,573 72,926,204 - Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 58,518,338 1,332,500 59,850,838 9,514,154 Utility taxes 836,618 - 836,618 - Accounts - 8,044,477 8,044,477 - Notes 75,000 199,000 274,000 - Loans 9,787,673 - 9,787,673 - Special assessments 661,093 - 661,093 - Leases 2,183,885 3,926,575 6,110,460 - Accrued interest 2,247 5,859 8,106 - Other 1,059,869 212,455 1,272,324 95 Due from other governments 11,823,538 - 11,823,538 - Due from primary government - - - 203,328 Internal balances (2,872,563) 2,872,563 - - Inventories 1,767,552 997,032 2,764,584 - Prepaid items 6,149,830 - 6,149,830 - Net pension asset 39,092,326 9,267,670 48,359,996 5,364,050 Capital assets Capital assets not being depreciated 48,888,893 6,673,158 55,562,051 311,380 Capital assets being depreciated, net 179,867,736 374,257,411 554,125,147 10,000,756 Total assets 477,107,089 418,445,301 895,552,390 32,720,094 DEFERRED OUTFLOWS OF RESOURCES Asset retirement obligations - 3,614,036 3,614,036 - Pension items - Police 26,898,174 - 26,898,174 - Pension items - Fire 20,103,248 - 20,103,248 - Pension items - IMRF 4,836,971 1,146,707 5,983,678 663,705 OPEB items 3,739,191 174,767 3,913,958 55,553 Total deferred outflows of resources 55,577,584 4,935,510 60,513,094 719,258 Total assets and deferred outflows of resources 532,684,673 423,380,811 956,065,484 33,439,352 Primary Government CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION December 31, 2022 (This statement is continued on the following page.) - 7 - Component Unit Governmental Business-Type Evanston Public Activities Activities Total Library LIABILITIES Vouchers payable 11,418,736$ 2,686,277$ 14,105,013$ 175,222$ Retainage payable - 91,289 91,289 - Deposits payable - 1,796 1,796 - Accrued payroll 2,687,584 - 2,687,584 - Accrued interest 901,222 200,926 1,102,148 19,348 Due to other governments 3,449,453 - 3,449,453 - Due to component unit 203,328 - 203,328 - Due to fiduciary funds 4,065,865 - 4,065,865 - Unearned revenue 30,714,206 - 30,714,206 - Noncurrent liabilities Due within one year 12,647,588 6,675,378 19,322,966 358,648 Due in more than one year 410,206,378 83,423,489 493,629,867 6,528,417 Total liabilities 476,294,360 93,079,155 569,373,515 7,081,635 DEFERRED INFLOWS OF RESOURCES Pension items - Police Pension 1,243,238 - 1,243,238 - Pension items - Fire Pension 1,032,060 - 1,032,060 - Pension items - IMRF 29,626,683 7,023,638 36,650,321 4,065,223 OPEB items 5,648,654 264,014 5,912,668 83,921 Property taxes levied for future periods 47,366,662 1,332,500 48,699,162 8,043,385 Leases 2,148,626 3,861,580 6,010,206 - Total deferred inflows of resources 87,065,923 12,481,732 99,547,655 12,192,529 Total liabilities and deferred inflows of resources 563,360,283 105,560,887 668,921,170 19,274,164 NET POSITION Net investment in capital assets 80,017,854 296,945,278 376,963,132 4,081,234 Restricted for Pensions 39,092,326 9,267,670 48,359,996 5,364,050 Highway maintenance 5,457,966 - 5,457,966 - Emergency telephone system 1,484,368 - 1,484,368 - HUD approved projects 445,424 - 445,424 - Neighborhood improvements 4,638,696 - 4,638,696 - Reparations 248,536 - 248,536 - Sustainability 384,592 - 384,592 - Governmental services 531,170 - 531,170 - Capital improvements 733,413 - 733,413 704,389 Debt service 8,601,591 - 8,601,591 2,782 General assistance 986,386 - 986,386 - Endowment - - - 4,107,524 Unrestricted (deficit)(173,297,932) 11,606,976 (161,690,956) (94,791) TOTAL NET POSITION (DEFICIT)(30,675,610)$ 317,819,924$ 287,144,314$ 14,165,188$ Primary Government CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION (Continued) December 31, 2022 See accompanying notes to financial statements. - 8 - Operating Capital Charges for Grants and Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General management and support 22,825,409$ 9,403,164$ 315,219$ -$ Public safety 70,097,181 8,365,566 127,164 - Public works 20,711,786 214,791 4,790,783 811,608 Health and human resource development 3,158,454 425,043 1,430,609 - Recreational and cultural opportunities 11,098,493 6,961,905 276,569 - Housing and economic development 10,317,825 7,254,918 2,972,897 125,000 Interest 5,161,464 - - - Total governmental activities 143,370,612 32,625,387 9,913,241 936,608 Business-Type Activities Water 14,562,608 22,925,552 - - Sewer 6,385,682 9,638,057 - - Solid waste 5,148,518 5,323,741 - - Motor vehicles parking system 8,882,305 8,889,291 - - Total business-type activities 34,979,113 46,776,641 - - TOTAL PRIMARY GOVERNMENT 178,349,725$ 79,402,028$ 9,913,241$ 936,608$ COMPONENT UNIT Evanston Public Library 7,399,971$ 44,927$ 667,620$ -$ Program Revenues CITY OF EVANSTON, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2022 - 9 - Component Unit Total Evanston Governmental Business-Type Primary Public Activities Activities Government Library (13,107,026)$ -$ (13,107,026)$ -$ (61,604,451) - (61,604,451) - (14,894,604) - (14,894,604) - (1,302,802) - (1,302,802) - (3,860,019) - (3,860,019) - 34,990 - 34,990 - (5,161,464) - (5,161,464) - (99,895,376) - (99,895,376) - - 8,362,944 8,362,944 - - 3,252,375 3,252,375 - - 175,223 175,223 - - 6,986 6,986 - - 11,797,528 11,797,528 - (99,895,376) 11,797,528 (88,097,848) - -$ -$ -$ (6,687,424)$ General Revenues Taxes Property tax 52,498,104 1,332,500 53,830,604 7,855,001 Other taxes 9,856,593 - 9,856,593 - Personal property replacement taxes 5,516,675 - 5,516,675 - Sales and home rule tax 23,443,235 - 23,443,235 - Utility tax 6,878,514 - 6,878,514 - Liquor tax 3,291,166 - 3,291,166 - Parking tax 2,952,826 - 2,952,826 - Real estate transfer tax 5,496,306 - 5,496,306 - Intergovernmental 7,659,448 - 7,659,448 - Income tax 12,826,057 - 12,826,057 - Investment income 1,334,450 (92) 1,334,358 (943,390) Gain on sale of capital assets - - - - Miscellaneous 4,427,582 - 4,427,582 6,649 Transfers 4,789,583 (4,789,583) - - Total 140,970,539 (3,457,175) 137,513,364 6,918,260 CHANGE IN NET POSITION 41,075,163 8,340,353 49,415,516 230,836 NET POSITION (DEFICIT), JANUARY 1 (71,750,773) 309,479,571 237,728,798 13,934,352 NET POSITION (DEFICIT), DECEMBER 31 (30,675,610)$ 317,819,924$ 287,144,314$ 14,165,188$ Net (Expense) Revenue and Change in Net Position Primary Government See accompanying notes to financial statements. - 10 - General Nonmajor Total Obligation Governmental Governmental General Debt Service ARPA Funds Funds Cash and equivalents 20,492,652$ 2,774,084$ 6,906,203$ 24,160,647$ 54,333,586$ Investments 28,658,014 516,020 24,943,229 9,686,368 63,803,631 Receivables Property taxes 38,866,175 15,751,469 - 3,900,694 58,518,338 Utility 836,618 - - - 836,618 Notes 75,000 - - - 75,000 Loans - - - 9,787,673 9,787,673 Special assessments - - - 661,093 661,093 Leases 1,744,059 - - 439,826 2,183,885 Accrued interest 1,994 - - 253 2,247 Other 1,054,875 - - - 1,054,875 Due from other governments 10,687,563 - - 1,135,975 11,823,538 Due from other funds 5,190,166 - - 341,417 5,531,583 Inventories 28,062 - - - 28,062 TOTAL ASSETS 107,635,178$ 19,041,573$ 31,849,432$ 50,113,946$ 208,640,129$ LIABILITIES Vouchers payable 2,384,223$ -$ 71,094$ 8,339,235$ 10,794,552$ Accrued payroll 2,687,584 - - - 2,687,584 Unearned revenue - - 30,714,206 - 30,714,206 Due to other governments 3,296,277 - - 153,176 3,449,453 Due to component unit 203,328 - - - 203,328 Due to other funds - 4,197,505 532,962 518,558 5,249,025 Due to fiduciary funds 4,065,865 - - - 4,065,865 Total liabilities 12,637,277 4,197,505 31,318,262 9,010,969 57,164,013 DEFERRED INFLOWS OF RESOURCES Long-term loans - - - 10,448,766 10,448,766 Property taxes levied for future periods 32,157,402 12,878,258 - 2,331,002 47,366,662 Leases 1,717,293 - - 431,333 2,148,626 Total deferred inflows of resources 33,874,695 12,878,258 - 13,211,101 59,964,054 Total liabilities and deferred inflows of resources 46,511,972 17,075,763 31,318,262 22,222,070 117,128,067 ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES December 31, 2022 CITY OF EVANSTON, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS (This statement is continued on the following page.) - 11 - General Nonmajor Total Obligation Governmental Governmental General Debt Service ARPA Funds Funds FUND BALANCES Nonspendable Cash with fiscal agent -$ -$ -$ -$ -$ Prepaid items - - - - - Inventory - - - - - Notes 75,000 - - - 75,000 Inventory 28,062 - - - 28,062 Restricted Highway maintenance - - - 5,457,966 5,457,966 Emergency telephone system - - - 1,484,368 1,484,368 HUD approved projects - - - 445,424 445,424 Neighborhood improvements - - - 4,089,030 4,089,030 Reparations - - - 248,536 248,536 Sustainability - - - 384,592 384,592 Governmental services - - 531,170 - 531,170 Debt service - 1,965,810 - 6,635,781 8,601,591 General assistance - - - 986,386 986,386 Capital improvements - - - 733,413 733,413 Assigned Capital improvements - - - 7,762,268 7,762,268 Other 3,344,571 - - - 3,344,571 Unassigned (deficit)57,675,573 - - (335,888) 57,339,685 Total fund balances 61,123,206 1,965,810 531,170 27,891,876 91,512,062 TOTAL LIABILITIES, INFLOWS OF RESOURCES, AND FUND BALANCES 107,635,178$ 19,041,573$ 31,849,432$ 50,113,946$ 208,640,129$ December 31, 2022 CITY OF EVANSTON, ILLINOIS BALANCE SHEET (Continued) GOVERNMENTAL FUNDS See accompanying notes to financial statements. - 12 - FUND BALANCES OF GOVERNMENTAL FUNDS 91,512,062$ 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 228,756,629$ Less internal service fund portion 7,273,461 221,483,168 Total OPEB liability payable is not due and payable in the current period and, therefore, is not reported in the governmental funds (20,349,682) Interest payable is not due and payable in the current period and, therefore, not reported in the governmental funds (901,222) 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 Total governmental general obligation bonds payable (138,486,406)$ Less internal service fund portion (660,000) (137,826,406) Bonds premium liability (10,252,369) Compensated absences payable (9,928,536) Net pension liability/asset is shown as a liability/asset on the statement of net position Illinois Municipal Retirement Fund 39,092,326 Police Pension Fund (128,935,255) Firefighters' Pension Fund (110,575,648) 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 (24,789,712) Police Pension Fund 25,654,936 Firefighters' Pension Fund 19,071,188 OPEB (1,899,845) Deferred inflows for long-term loans are not a available and, therefore, not revenue in fund financial statements 10,448,766 The net position of the internal service fund is included in the governmental activities on the statement of net position 7,520,619 NET POSITION OF GOVERNMENTAL ACTIVITIES (30,675,610)$ December 31, 2022 CITY OF EVANSTON, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION See accompanying notes to financial statements. - 13 - General Nonmajor Total Obligation Governmental Governmental General Debt Service ARPA Funds Funds REVENUES Taxes 76,461,370$ 13,858,421$ -$ 8,217,785$ 98,537,576$ Licenses and permits 12,562,065 - - - 12,562,065 Special assessments - - - 318,463 318,463 Intergovernmental 28,225,468 - 7,659,448 7,871,187 43,756,103 Fees - - - 538,433 538,433 Charges for services 13,945,833 - - 63,467 14,009,300 Fines and forfeits 3,790,046 - - - 3,790,046 Investment income 309,972 91,189 524,941 408,348 1,334,450 Miscellaneous 2,290,941 - - 2,518,815 4,809,756 Total revenues 137,585,695 13,949,610 8,184,389 19,936,498 179,656,192 EXPENDITURES Current General management and support 19,318,298 19 3,180,971 1,565,948 24,065,236 Public safety 64,482,767 - 344,378 1,559,923 66,387,068 Public works 13,320,046 - - 10,342,961 23,663,007 Health and human resource development 4,781,077 - - - 4,781,077 Recreational and cultural opportunities 11,351,700 - - - 11,351,700 Housing and economic development 3,062,160 - - 8,369,669 11,431,829 Capital outlay - - 254,415 6,421,224 6,675,639 Debt service Principal - 10,054,059 - - 10,054,059 Interest - 5,642,685 - - 5,642,685 Fiscal charges - 6,650 - - 6,650 Total expenditures 116,316,048 15,703,413 3,779,764 28,259,725 164,058,950 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 21,269,647 (1,753,803) 4,404,625 (8,323,227) 15,597,242 OTHER FINANCING SOURCES (USES) Transfers in 8,775,706 2,267,041 - 1,249,439 12,292,186 Transfers (out)(2,592,969) - (3,900,000) (3,409,634) (9,902,603) Total other financing sources (uses)6,182,737 2,267,041 (3,900,000) (2,160,195) 2,389,583 NET CHANGE IN FUND BALANCES 27,452,384 513,238 504,625 (10,483,422) 17,986,825 FUND BALANCES, JANUARY 1 33,670,822 1,452,572 26,545 38,375,298 73,525,237 FUND BALANCES, DECEMBER 31 61,123,206$ 1,965,810$ 531,170$ 27,891,876$ 91,512,062$ CITY OF EVANSTON, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, AND GOVERNMENTAL FUNDS For the Year Ended December 31, 2022 CHANGES IN FUND BALANCES See accompanying notes to financial statements. - 14 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 17,986,825$ 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 depreciated in the statement of activities 15,426,706 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 (10,715,563) 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 10,054,059 The amortization of premium on long-term debt is reported as a reduction of interest expense on the statement of activities 918,324 Changes in total other postemployment benefits obligations are reported only in the statement of activities 1,957,015 The change in compensated absences payable is shown as an expense on the statement of activities 750,515 The change in the accrual of interest is reported as interest expense on the statement of activities (430,453) The change in the net pension liability (asset) is reported only in the statement of activities Illinois Municipal Retirement Fund 18,465,780 Police Pension Fund (43,160,349) Firefighters' Pension Fund (26,729,021) The change in deferred inflows and outflows of resources is reported only in the statement of activities Illinois Municipal Retirement Fund (9,843,013) Police Pension Fund 40,416,891 Firefighters' Pension Fund 24,402,399 OPEB (3,119,541) The change in deferred inflows for long-term loans is not an expense on the statement of activities 549,666 Internal service funds are reported separately in the fund financial statements 4,144,923 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 41,075,163$ CITY OF EVANSTON, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2022 See accompanying notes to financial statements. - 15 - Governmental Activities Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds CURRENT ASSETS Cash and cash equivalents 300$ 522,284$ -$ 1,011,444$ 1,534,028$ 1,127,837$ Investments 7,657,233 1,272,367 - 192,973 9,122,573 - Receivables Property taxes - - 1,332,500 - 1,332,500 - Accounts - water and sewerage charges Accounts - billed 4,096,934 241,367 203,703 - 4,542,004 - Accounts - unbilled 1,357,249 1,398,919 746,305 - 3,502,473 - Leases - - - 3,926,575 3,926,575 - Accrued interest - - - 5,859 5,859 - Other - - 46,037 166,418 212,455 4,994 Inventories 858,767 138,265 - - 997,032 1,739,490 Prepaid items - - - - - 6,149,830 Due from other funds 20,439,782 3,916,710 1,243,055 - 25,599,547 120,133 Total current assets 34,410,265 7,489,912 3,571,600 5,303,269 50,775,046 9,142,284 NONCURRENT ASSETS Capital assets Capital assets not being depreciated 2,276,680 - - 4,396,478 6,673,158 - Capital assets being depreciated 178,824,087 266,603,331 1,122,235 94,262,662 540,812,315 27,619,660 Accumulated depreciation (41,114,146) (78,957,046) (235,979) (46,247,733) (166,554,904) (20,346,199) Total capital assets 139,986,621 187,646,285 886,256 52,411,407 380,930,569 7,273,461 Other assets Net pension asset 5,127,804 1,256,047 1,525,190 1,358,629 9,267,670 - Notes receivable - - - 199,000 199,000 - Total other assets 5,127,804 1,256,047 1,525,190 1,557,629 9,466,670 - Total noncurrent assets 145,114,425 188,902,332 2,411,446 53,969,036 390,397,239 7,273,461 Total assets 179,524,690 196,392,244 5,983,046 59,272,305 441,172,285 16,415,745 DEFERRED OUTFLOWS OF RESOURCES Asset retirement obligations 3,614,036 - - - 3,614,036 - Pension items - IMRF 634,473 155,413 188,715 168,106 1,146,707 - OPEB items 76,022 41,013 27,103 30,629 174,767 18,833 Total deferred outflows of resources 4,324,531 196,426 215,818 198,735 4,935,510 18,833 Total assets and deferred outflows of resources 183,849,221 196,588,670 6,198,864 59,471,040 446,107,795 16,434,578 CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2022 Business-Type Activities (This statement is continued on the following page.) - 16 - Governmental Activities Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds CURRENT LIABILITIES Vouchers payable 1,961,474$ 342,001$ 246,678$ 136,124$ 2,686,277$ 624,184$ Retainage payable 91,289 - - - 91,289 - Deposits payable - 190 1,606 - 1,796 - Unearned revenue - - - - - - Interest payable - restricted 112,533 85,380 - 3,013 200,926 - Notes payable - IEPA 1,604,741 3,183,578 - - 4,788,319 - Current portion of GO bonds payable 1,436,736 235,972 - 40,000 1,712,708 - Current portion of total OPEB liability 17,049 9,198 6,078 6,869 39,194 4,224 Claims payable - - - - - 701,992 Due to other funds 22,508,991 - - 217,993 22,726,984 3,275,254 Compensated absences payable 83,990 19,005 11,886 20,276 135,157 17,163 Total current liabilities 27,816,803 3,875,324 266,248 424,275 32,382,650 4,622,817 NONCURRENT LIABILITIES Notes payable - IEPA 31,011,161 11,704,347 - - 42,715,508 - General obligation bonds payable 29,062,323 3,673,222 - 1,433,433 34,168,978 660,000 Asset retirement obligations 5,081,625 - - - 5,081,625 - Total OPEB liability 398,775 215,134 142,173 160,668 916,750 98,790 Claims payable - - - - - 3,435,250 Compensated absences payable 335,961 76,020 47,544 81,103 540,628 68,651 Total long-term liabilities 65,889,845 15,668,723 189,717 1,675,204 83,423,489 4,262,691 Total liabilities 93,706,648 19,544,047 455,965 2,099,479 115,806,139 8,885,508 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 3,886,180 951,914 1,155,888 1,029,656 7,023,638 - OPEB items 114,843 61,956 40,944 46,271 264,014 28,451 Deferred property taxes - - 1,332,500 - 1,332,500 - Leases - - - 3,861,580 3,861,580 - Total deferred inflows of resources 4,001,023 1,013,870 2,529,332 4,937,507 12,481,732 28,451 Total liabilities and deferred inflows of resources 97,707,671 20,557,917 2,985,297 7,036,986 128,287,871 8,913,959 NET POSITION Net investment in capital assets 76,359,621 168,761,427 886,256 50,937,974 296,945,278 6,329,848 Restricted for pensions 5,127,804 1,256,047 1,525,190 1,358,629 9,267,670 - Unrestricted 4,654,125 6,013,279 802,121 137,451 11,606,976 1,190,771 TOTAL NET POSITION 86,141,550$ 176,030,753$ 3,213,567$ 52,434,054$ 317,819,924$ 7,520,619$ Business-Type Activities PROPRIETARY FUNDS December 31, 2022 CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION (Continued) See accompanying notes to financial statements. - 17 - Governmental Activities Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds OPERATING REVENUES Charges for services 22,229,311$ 9,614,057$ 5,197,233$ 8,631,301$ 45,671,902$ 22,942,038$ Miscellaneous 696,241 24,000 126,508 257,990 1,104,739 877,905 Total operating revenues 22,925,552 9,638,057 5,323,741 8,889,291 46,776,641 23,819,943 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 872,283 1,338,939 999,453 1,757,309 4,967,984 - Operations 9,031,126 700,847 4,050,839 4,052,209 17,835,021 20,725,550 Total operating expenses excluding depreciation 9,903,409 2,039,786 5,050,292 5,809,518 22,803,005 20,725,550 OPERATING INCOME BEFORE DEPRECIATION 13,022,143 7,598,271 273,449 3,079,773 23,973,636 3,094,393 Depreciation 3,342,779 3,870,723 98,226 3,035,033 10,346,761 1,506,351 OPERATING INCOME 9,679,364 3,727,548 175,223 44,740 13,626,875 1,588,042 NON-OPERATING REVENUES (EXPENSES) Investment income (80,377) (34,334) 20 114,599 (92) 906 Property taxes - - 1,332,500 - 1,332,500 - Interest expense (1,316,420) (475,173) - (37,754) (1,829,347) (8,188) Gain (loss) on disposal of capital assets - - - - - 164,163 Claims reimbursements - - - - - - Total non-operating revenues (expenses)(1,396,797) (509,507) 1,332,520 76,845 (496,939) 156,881 INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 8,282,567 3,218,041 1,507,743 121,585 13,129,936 1,744,923 TRANSFERS AND CONTRIBUTIONS Transfers in - - 1,000,000 2,300,000 3,300,000 2,400,000 Transfers (out)(4,049,559) (611,164) (456,470) (2,972,390) (8,089,583) - Capital contributions - - - - - - Total transfers and capital contributions (4,049,559) (611,164) 543,530 (672,390) (4,789,583) 2,400,000 NET INCOME (LOSS)4,233,008 2,606,877 2,051,273 (550,805) 8,340,353 4,144,923 NET POSITION, JANUARY 1 81,908,542 173,423,876 1,162,294 52,984,859 309,479,571 3,375,696 NET POSITION, DECEMBER 31 86,141,550$ 176,030,753$ 3,213,567$ 52,434,054$ 317,819,924$ 7,520,619$ CITY OF EVANSTON, ILLINOIS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2022 Business-Type Activities See accompanying notes to financial statements. - 18 - Governmental Activities - Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 20,340,643$ 9,789,651$ 5,387,569$ 8,731,827$ 44,249,690$ 3,418,018$ Receipts from (payments for) interfund services provided (1,719,648) (592,260) (302,004) (511,500) (3,125,412) 19,810,524 Receipts from other agencies - - - - - 586,407 Payments to suppliers (8,163,070) (1,017,685) (3,609,951) (4,027,502) (16,818,208) (3,728,163) Payments to employees (524,474) (1,298,399) (1,540,605) (1,649,930) (5,013,408) (2,281,624) Payments for insurance premiums - - - - - (19,470,627) Net cash from operating activities 9,933,451 6,881,307 (64,991) 2,542,895 19,292,662 (1,665,465) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes - - 1,332,500 - 1,332,500 - Transfers in - - 1,000,000 2,300,000 3,300,000 2,400,000 Transfers (out)(4,049,559) (611,164) (456,470) (2,972,390) (8,089,583) - Interfund activity (1,529,611) (376,149) (1,531,102) (2,515,034) (5,951,896) 1,429,900 Net cash from noncapital financing activities (5,579,170) (987,313) 344,928 (3,187,424) (9,408,979) 3,829,900 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Sale of capital assets - - - - - 164,163 Acquisition and construction of capital assets (20,355,633) (2,928,170) (279,957) (1,670,210) (25,233,970) (1,263,479) Proceeds from loans 10,179,593 1,219,781 - - 11,399,374 - Principal paid on general obligation bonds (897,831) (188,404) - (35,000) (1,121,235) - Interest paid on general obligation bonds (1,464,451) (532,017) - (51,903) (2,048,371) (8,188) Principal paid on IEPA loans (1,116,065) (3,051,713) - -(4,167,778) - Net cash from capital and related financing activities (13,654,387) (5,480,523) (279,957) (1,757,113) (21,171,980) (1,107,504) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments 7,794,607 - - 588,833 8,383,440 - Interest income 140,771 20,363 20 117,021 278,175 906 Net cash from investing activities 7,935,378 20,363 20 705,854 8,661,615 906 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,364,728) 433,834 - (1,695,788) (2,626,682) 1,057,837 CASH AND CASH EQUIVALENTS, JANUARY 1 1,365,028 88,450 - 2,707,232 4,160,710 70,000 CASH AND CASH EQUIVALENTS, DECEMBER 31 300$ 522,284$ -$ 1,011,444$ 1,534,028$ 1,127,837$ CITY OF EVANSTON, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2022 (This statement is continued on the following page.) - 19 - Governmental Activities - Motor Vehicle Internal Service Water Sewer Solid Waste Parking System Total Funds RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income 9,679,364$ 3,727,548$ 175,223$ 44,740$ 13,626,875$ 1,588,042$ Adjustments to reconcile operating income to net cash from operating activities Depreciation 3,342,779 3,870,723 98,226 3,035,033 10,346,761 1,506,351 Changes in assets and liabilities Accounts receivable (2,588,753) 151,594 63,828 (92,469) (2,465,800) (4,994) Lease items - - - (64,995) (64,995) - Prepaid expenses - - 166,816 - 166,816 (759,351) Inventories (116,692) (21,576) - - (138,268) (139,378) Compensated absences (203,276) (19,504) (128,302) 44,515 (306,567) (29,835) OPEB items 11,702 (15,831) (78,333) (8,953) (91,415) (21,950) Pension items - IMRF (1,000,265) (256,381) (334,517) (279,687) (1,870,850) - Deposits payable 3,844 - - - 3,844 - Vouchers payable 733,885 (555,266) (27,932) (135,289) 15,398 (438,992) Deferred outflows - asset retirement obligations 70,863 - - - 70,863 - Claims payable - - - - - (3,365,358) NET CASH FROM OPERATING ACTIVITIES 9,933,451$ 6,881,307$ (64,991)$ 2,542,895$ 19,292,662$ (1,665,465)$ NONCASH INVESTING, CAPITAL, AND RELATED FINANCING ACTIVITIES Capital assets acquired through vouchers and retainage payable 512,039$ 87,739$ -$ -$ 599,778$ 283,613$ Change in fair value of investments (221,148) (54,697) - (8,281) (284,126) - TOTAL NONCASH INVESTING, CAPITAL, AND RELATED FINANCING ACTIVITIES 290,891$ 33,042$ -$ (8,281)$ 315,652$ 283,613$ PROPRIETARY FUNDS For the Year Ended December 31, 2022 CITY OF EVANSTON, ILLINOIS STATEMENT OF CASH FLOWS (Continued) See accompanying notes to financial statements. - 20 - ASSETS Cash and cash equivalents 15,017,702$ Investments U.S. Treasury obligations 18,821,300 U.S. agency obligations 10,895,016 Corporate bonds 12,376,583 Common stock 44,736,352 Equity mutual funds 56,227,705 Real estate 1,359,644 Investments held in the Illinois Firefighters' Pension Investment Fund 86,128,901 Prepaids 9,988 Receivables Accounts 3,123 Accrued interest 366,826 Due from City 4,065,865 Total assets 250,009,005 LIABILITIES Vouchers payable 12,911 Total liabilities 12,911 NET POSITION RESTRICTED FOR PENSIONS 249,996,094$ CITY OF EVANSTON, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS December 31, 2022 See accompanying notes to financial statements. - 21 - ADDITIONS Contributions Contributions - employer 21,112,289$ Contributions - plan members 2,417,158 Total contributions 23,529,447 Investment income Net depreciation in fair value of investments (47,250,960) Interest on investments 4,316,727 Less investment expenses (486,522) Total investment income (43,420,755) Total additions (19,891,308) DEDUCTIONS Administration 131,084 Benefit payments and refunds 27,149,198 Total deductions 27,280,282 NET DECREASE (47,171,590) NET POSITION RESTRICTED FOR PENSIONS January 1 297,167,684 December 31 249,996,094$ CITY OF EVANSTON, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2022 See accompanying notes to financial statements. - 22 - CITY OF EVANSTON, ILLINOIS NOTES TO THE FINANCIAL STATEMENTS December 31, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below. a. Reporting Entity 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, and (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 separat e 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 - 23 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a.Reporting Entity (Continued) 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. Blended Component Unit The Town of the City of Evanston, Illinois (the Township) has been previously presented as a separate legal entity which administers General Assistance , a public welfare program assigned by Illinois law to townships. Eligible clients received General Assistance for food, shelter, and medical needs. Through the town fund levy, the Township also supported a number of community action programs , which provided direct services to welfare recipients. The Township was governed by a Township Board of Trustees and provided services within the same geographic boundaries of the City. The Township Board of Trustees were the same individuals as the City Council. The Township board levied taxes and was responsible for adopting the Township budget and approving payment of bills. On April 30, 2014, the Township was discontinued and dissolved following the March 18, 2014 general election vote taken by the registered voters of the Township. Pursuant to 60 ILCS 1/27-15 and 1/27-20, effective 12:00 am May 1, 2014, the City assumed all rights, powers, assets, property, obligations, and duties of the Township, including the responsibility of providing the services that were previously provided by the Township. Beginning May 1, 2014, the functions of the Township are reported along with the City. Discrete Component Unit 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. 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 leg ally enacted through passage of a resolution by the City Council. - 24 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a.Reporting Entity (Continued) Discrete Component Unit (Continued) 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 EPL does not issue separate financial statements. The City’s financial statements include two pension trust funds: Police Pension Employees Retirement System The City’s financial statements include the Police Pension Employees Retirement System (PPERS) as a fiduciary component unit reported as a pension trust fund. The City’s sworn police employees participate in the PPERS. PPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the City Council, one elected pension beneficiary, and two elected police employees constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the City is obligated to fund all remaining PP ERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of the City’s contribution levels. Accordingly, the PPERS is fiscally dependent on the City. Firefighters’ Pension Employees Retirement System The City’s financial statements include the Firefighters ’ Pension System (the FPERS) as a fiduciary component unit reported as a Pension Trust Fund. The City’s sworn full-time firefighters participate in the FPERS. FPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the City Council, one elected pension beneficiary, and two elected from active participants of the Firefighters’ Pension Fund constitute the pension board. The participants are required to contribute a percentage of salary as established by state statute and the City is obligated to fund all remaining FPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. Accordingly , the FPERS is fiscally dependent on the City. - 25 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Joint Ventures 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). c. Government-Wide and Fund Financial Statements 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 thes e 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. Pr ogram revenues include (1) charges to customers or applicants who purchase , use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds , proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are reported in the supplementary information. d. Fund Accounting The City and the Library use funds to report on its financial position and the results of i ts operations. A fund is a separate accounting entity with a self -balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Funds are classified into three categories: governmental , proprietary, and fiduciary. Each category, in turn, is divided into separate “fund types.” - 26 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d.Fund Accounting (Continued) 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. 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. Fiduciary funds are used to account for assets held on behalf of outside parties , including other governments. When these assets are held under the terms of a formal trust agreement, a private purpose trust fund is used. 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. e.Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The 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, generally 60 days except for sales taxes and telecommunication taxes which use 90 days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded when payment is due or when amounts have been accumulated in the debt service fund for payment to be made early in the following year. - 27 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. 1. Taxes 5. Recycling program fees and sales Property* Sales 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 2. Licenses Income taxes Sales taxes 3. Franchise fees Use tax 4. Charges for services 8. Investment income *Property taxes are defined as available if collected within at most 60 days after fiscal year end. All other revenue items are considered to be measurable and available only when cash is received by the City and the Library. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. The General Obligation Debt Fund is a debt service fund which accumulate monies for the principal and interest payments on general obligation debt. The ARPA Fund is used to account for the State and Local Fiscal Recovery Funds as provided for by the American Rescue Plan Act of 2021. 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. - 28 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The City reports the following major proprietary funds: The Water Fund accounts for the provision of water services to the residents of the City and the sale of water to the Villages of Skokie and Lincolnwood, Illinois and the Northwest Water Commission and Morton Grove Niles 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. 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 City has elected to present this fund as major. 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. Additionally, the City reports the following fund types: Internal Service Funds account for the fleet management and insurance services provided to other departments or agencies of the government, or to other governments, on a cost reimbursement basis. Pension Trust Funds account for the activities of the Police and Firefighters’ Pension Funds, which accumulate resources for pension benefit payments to qualified public safety employees. The Library reports the Operating Fund, Endowment Fund, Capital Improvement Fund, and Debt Service Fund. - 29 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. 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. 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. 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 r evenue 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. - 30 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) f.Cash and Equivalents 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 The Illinois Funds. g.Investments 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. h.Inventories and Prepaid Items Inventories in the Water, Sewer, and Fleet Service Funds are valued at cost. Inventory amounts are recorded on the basis of a physical count. 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. i.Capital Assets 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 purch ased 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. Major outlays for capital assets and improvements are capitalized as projects are constructed. - 31 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i. Capital Assets (Continued) Property, plant, and equipment are depreciated, and intangible assets are amortized using the straight-line method over the following estimated useful lives: Description Years Description Years Land improvements 10-100 Buildings and improvements 10-50 Lease improvements 10-100 Office equipment and furniture 5-15 Plant 20-100 Machinery and equipment 3-15 Transmission and distribution system 5-100 Infrastructure 30-100 Sewer system and underground lines 75-100 Library collections 7 Parking meters 15 Intangible assets 5-10 j. Compensated Absences 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. k. Long-Term Obligations 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. 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. - 32 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) l. Self-Insurance 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. m. Deferred Inflows/Outflows of Resources 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 fina ncial 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. n. Property Taxes 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 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 - 33 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) n.Property Taxes (Continued) 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 2021 tax levy received during the fiscal period between January 1, 2022 and December 31, 2022. A 3% allowance for loss is reflected in the City and the Library financial statements. The 2022 tax levy collections are intended to finance the 202 3 fiscal year and are not considered available for current operations and , therefore, are shown as unavailable/deferred revenue. o.Fund Equity 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: 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. - 34 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) o. Fund Equity (Continued) 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 or (2) all remaining positive spendable amounts in governmental funds, other than the General Fund, that are neither restricted nor committed. Assignments may take place after the end of the reporting period. 5. Unassigned - Includes residual positive fund balance within the General Fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceeds amounts restricted , committed, or assigned for those purposes. 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. 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. The City and the Library consider restricted amounts to be spent first when both restrict ed 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. 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 an y long-term debt outstanding issued to construct the capital assets. p. Interfund Transactions Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are reco rded 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. - 35 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) q.Use of Estimates 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. r.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 Chiaravalle 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. The Series 2010 Revenue Bonds were refunded in 2019 , and the City approved the issuance of $3,925,000 Series 2019A Revenue Bonds and $3,735,000 Series 2019B Revenue Bonds, dated December 1, 2019. As of December 31, 2022, outstanding bond balance of the 2019A Revenue Bonds was $3,505,000 and outstanding balance of the 2019B Revenue Bonds was $3,440,000. The City approved the issuance of $8 ,275,000 Series 2021 Revenue Bonds during the fiscal period ended December 31, 2021. The use of proceeds includes the refunding of outstanding balance of the “Series 2011” bonds, fund one or more debt service reserve funds and to pay certain costs incurred in connection with the issuance of the bonds. 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, 2022, outstanding bond balance was $8,275,000. 2.STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY The Insurance Fund, an internal service fund, had a net deficit of $2,147,197 as of December 31, 2022. The City plans to use current resources to pay for future liabilities. The Special Service District No. 9 had a net deficit of $199,987 as of December 31, 2022. The City plans to use current resources to pay for future liabiliti es. The Five Fifths Tax Increment District had a net deficit of $135,901 as of December 31, 2022. The City plans to use current resources to pay for future liabilities. - 36 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS The City and pension funds categorize the fair value measurements within the fair value hierarchy established by GAAP. 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. a. Types of Accounts and Securities 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 The Illinois Funds. The 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 fair value. The investment in The Illinois Funds by participants is also reported at amortized cost. The 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. The Illinois Metropolitan Investment Fund (IMET) is a local government investment pool. Created in 1996 as a not-for-profit trust formed under the Intergovernmental Cooperation Act and the Illinois Municipal Code . IMET was formed to provide Illinois government agencies with safe, liquid, attractive alternatives for investing and is managed by a Board of Trustees elected from the participating members . IMET offers participants two separate vehicles to meet their investment needs. The IMET Core Fund is designed for public funds that may be invested for longer than one year. The Core Fund carries the highest rating available (AAAf/bf) from Moody's for su ch funds. Member withdrawals can be made from the core fund with a five-day notice. The IMET Convenience Fund (CVF) is designed to accommodate funds requiring high liquidity, including short term cash management programs and temporary investment of bond proceeds. It is comprised of collateralized and FHLB LoC backed bank deposits, FDIC insured certificates of deposit and US government securities . Member withdrawals are generally on the same day as requested. Investments in IMET are valued at IMET’s share price, which is the price the investment could be sold . - 37 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3.DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS (Continued) a.Types of Accounts and Securities (Continued) 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 mi tigate 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. b.Pooling of Cash and Investments 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. c.Types of Investments 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. - 38 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS (Continued) c. Types of Investments (Continued) The following table presents the investment and maturities of the City ’s debt securities as of December 31, 2022: Investment Maturities (in Years) Investment Type Fair Value Less than 1 1-5 6-10 Greater than 10 U.S. Treasury obligations $ 20,420,219 $ 12,570,409 $ 7,849,810 $ - $ - Municipal bonds 11,207,881 6,223,517 4,974,364 - - Negotiable CDs 701,735 - 701,735 - - TOTAL $ 32,329,835 $ 18,793,926 $ 13,525,909 $ - $ - 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. The 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. The City ’s municipal bond investments were rated from Aa3 to Aa2 by Moody ’s. 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 The Illinois Funds, PMA, and IMET are valued at the funds’ share price, the price for which the investments could be sold. The City has the following recurring fair value measurements as of December 31, 2022. The investments in municipal bonds and mutual funds are valued using quoted matrix pricing models (Level 2 inputs). Custodial Credit Risk. For an investment , custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All of the City’s investments were insured, registered, or held by the counterparty’s trust department in the City’s name. Concentration of Credit Risk. It is the policy of the City to diversify its investment portfolio. Investments shall be diversified to eliminate the risk of loss resulting from overconcentration in a security, maturity, issuer, or class of securities. - 39 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS (Continued) d. Deposits 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, 2022. 4. RECEIVABLES a. Summary of Receivables Other receivables as of December 31, 2022 for the City’s Governmental Activities and Business-Type Activities, including the applicable allowances for uncollectible accounts , are as follows: Governmental Activities Business-Type Activities Total Receivables (net, where applicable, of allowances for uncollectibles) Amusement tax $ 116,768 $ - $ 116,768 Hotel tax 253,851 - 253,851 Liquor tax 300,816 - 300,816 Local motor fuel tax 99,913 - 99,913 Parking tax 88,068 - 88,068 Transportation network tax 195,459 - 195,459 Other miscellaneous 4,994 212,455 217,449 NET TOTAL RECEIVABLES $ 1,059,869 $ 212,455 $ 1,272,324 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. - 40 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4.RECEIVABLES (Continued) b.Loans Receivable - Special Revenue Funds 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 on the following page: Loan Type Interest Rates Beginning Loans Made Loan Repayments Loan Adjustments Ending Title transfer 0% - 8% $ 2,689,848 $ 109,210 $ 62,012 $ (5,436) $ 2,731,610 Amortizing 0% - 8% 2,349,612 390,000 57,749 -2,681,863 Forgivable 0% - 8% 4,501,260 -4,778 (44,282) 4,452,200 Allowance (78,000) --- (78,000) TOTAL LOANS $ 9,462,720 $ 499,210 $ 124,539 $ (49,718) $ 9,787,673 - 41 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5.CAPITAL ASSETS a.Capital Asset Activity Capital asset activity for the year ended December 31, 2022, was as follows: Beginning Balances Increases Decreases Ending Balances GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 7,250,067 $ -$-$7,250,067 Right of way 18,695,896 -- 18,695,896 Artwork 471,051 -- 471,051 Construction in progress 16,731,165 14,084,844 8,344,130 22,471,879 Total capital assets not being depreciated 43,148,179 14,084,844 8,344,130 48,888,893 Capital assets being depreciated/amortized Buildings and improvements 143,563,972 1,252,835 -144,816,807 Office equipment and furniture 7,393,804 398,508 -7,792,312 Intangible assets 8,314,832 - - 8,314,832 Machinery and equipment 31,064,752 1,536,144 791,736 31,809,160 Infrastructure 205,300,783 7,478,371 -212,779,154 Capitalized leases 502,532 - - 502,532 Total capital assets being depreciated/amortized 396,140,675 10,665,858 791,736 406,014,797 Less accumulated depreciation/amortization for Buildings and improvements 47,228,890 2,957,764 -50,186,654 Office equipment and furniture 5,519,228 425,938 -5,945,166 Intangible assets 7,343,158 205,329 -7,548,487 Machinery and equipment 22,471,828 1,805,440 791,736 23,485,532 Infrastructure 131,659,063 6,823,535 -138,482,598 Capitalized leases 494,716 3,908 -498,624 Total accumulated depreciation/amortization 214,716,883 12,221,914 791,736 226,147,061 Total capital assets being depreciated/amortized, net 181,423,792 (1,556,056) -179,867,736 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 224,571,971 $ 12,528,788 $ 8,344,130 $ 228,756,629 - 42 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5.CAPITAL ASSETS (Continued) a.Capital Asset Activity (Continued) Beginning Balances Increases Decreases Ending Balances BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 4,592,141 $ -$-$4,592,141 Construction in progress 1,527,624 752,179 558,538 1,721,265 Artwork 359,752 - - 359,752 Total capital assets not being depreciated 6,479,517 752,179 558,538 6,673,158 Capital assets being depreciated/amortized Land improvements 9,909,854 406,923 -10,316,777 Buildings and improvements 77,972,320 903,290 -78,875,610 Leasehold improvements 772,131 - - 772,131 Plant 70,340,095 1,637,403 -71,977,498 Transmission and distribution system 88,451,868 18,009,800 -106,461,668 Sewer system and underground lines 261,412,424 2,593,182 -264,005,606 Intangible assets 1,250,490 - - 1,250,490 Equipment 4,460,499 898,295 -5,358,794 Parking meters 1,793,741 - - 1,793,741 Total capital assets being depreciated/amortized 516,363,422 24,448,893 -540,812,315 Less accumulated depreciation/amortization Land improvements 4,421,214 479,376 -4,900,590 Buildings and improvements 36,273,201 2,070,309 -38,343,510 Leasehold improvements 407,421 23,404 -430,825 Plant 23,476,719 1,852,607 -25,329,326 Transmission and distribution system 13,909,730 1,490,172 -15,399,902 Sewer system and underground lines 73,762,692 3,580,210 -77,342,902 Intangible assets 932,819 96,629 -1,029,448 Equipment 1,919,911 558,620 -2,478,531 Parking meters 1,104,436 195,434 -1,299,870 Total accumulated depreciation/amortization 156,208,143 10,346,761 -166,554,904 Total capital assets being depreciated and amortized, net 360,155,279 14,102,132 -374,257,411 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 366,634,796 $ 14,854,311 $ 558,538 $ 380,930,569 - 43 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5.CAPITAL ASSETS (Continued) a.Capital Asset Activity (Continued) Depreciation and amortization expense was charged to functions/programs of the primary government as follows: GOVERNMENTAL ACTIVITIES General management and support $ 440,083 Public safety 736,553 Public works 8,773,019 Housing and economic development 9,302 Recreation and cultural opportunities 756,606 Internal service funds 1,506,351 TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 12,221,914 BUSINESS-TYPE ACTIVITIES Water $ 3,342,779 Sewer 3,870,723 Solid waste 98,226 Motor vehicle parking 3,035,033 TOTAL DEPRECIATION EXPENSE - BUSINESS-TYPE ACTIVITIES $ 10,346,761 b.Construction Commitments The value of construction contracts signed, where the work has not yet been performed at December 31, 2022 is as follows: Capital Improvement Fund $ 9,524,413 Crown Capital Improvement Fund 904,324 Motor Fuel Tax Fund 506,790 Water Fund 52,570,665 Motor Vehicle Parking System Fund 268,426 West Evanston TIF 376,759 Special Assessment Fund 57,999 Chicago Main TIF 82,045 Five Fifth TIF 98,711 TOTAL CONSTRUCTION COMMITMENTS $ 64,390,132 - 44 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6.INTERFUNDS a.Interfund Accounts 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. Due from/to other funds are as follows: Due From Due To General $ 5,190,166 $ 4,065,865 General Obligation Debt Service -4,197,505 ARPA -532,962 Water 20,439,782 22,508,991 Sewer 3,916,710 - Solid Waste 1,243,055 - Motor Vehicle Parking System -217,993 Nonmajor Governmental 341,417 518,558 Fiduciary 4,065,865 - Internal Service 120,133 3,275,254 TOTAL $ 35,317,128 $ 35,317,128 b.Interfund Transfers 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, and (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. Interfund transfers between funds for the year ended December 31, 2022 were as follows: Transfers In Transfers Out Governmental Funds General Emergency Telephone System $ 90,000 $ - Special Assessment 92,000 - Motor Fuel Tax 1,044,987 - - 45 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6.INTERFUNDS (Continued) b.Interfund Transfers (Continued) Transfers In Transfers Out Governmental Funds (Continued) General (Continued) Dempster-Dodge Tax Increment District $ 10,000 $ - Chicago Main Tax Increment District 30,000 - Howard Ridge Tax Increment District 75,000 - West Evanston Tax Increment District 75,000 - Water 4,049,559 - Sewer 336,770 - Motor Vehicle Parking System 2,972,390 - Solid Waste -1,000,000 Equipment Replacement -800,000 Capital Improvements -500,000 Crown Community Center -175,000 Sustainability -117,969 Total General 8,775,706 2,592,969 General Obligation Debt Service Sewer 274,394 - Special Assessment 372,938 - Chicago Main Tax Increment District 234,763 - Dempster-Dodge Tax Increment District 161,833 - Howard Ridge Tax Increment District 323,113 - Crown Construction 900,000 - Total General Obligation Debt Service 2,267,041 - ARPA Motor Vehicle Parking System -2,300,000 Equipment Replacement -1,600,000 Total ARPA -3,900,000 - 46 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. INTERFUNDS (Continued) b. Interfund Transfers (Continued) Transfers In Transfers Out Nonmajor Governmental Motor Fuel Tax General $ - $ 1,044,987 Total Motor Fuel Tax - 1,044,987 Emergency Telephone System General - 90,000 Total Emergency Telephone System - 90,000 Sustainability General 117,969 - Total Sustainability 117,969 - Chicago Main Tax Increment District General - 30,000 General Obligation Debt Service - 234,763 Total Chicago Main Tax Increment District - 264,763 Dempster-Dodge Tax Increment District General - 10,000 General Obligation Debt Service - 161,833 Total Dempster-Dodge Tax Increment District - 171,833 Howard Ridge Tax Increment District General - 75,000 General Obligation Debt Service - 323,113 Total Howard Ridge Tax Increment District - 398,113 - 47 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6.INTERFUNDS (Continued) b.Interfund Transfers (Continued) Transfers In Transfers Out Nonmajor Governmental (Continued) West Evanston Tax Increment District General $ -$75,000 Total West Evanston Tax Increment District -75,000 Capital Improvements General 500,000 - Solid Waste 456,470 - Total Capital Improvements 956,470 - Crown Construction General Obligation Debt Service -900,000 Total Crown Construction -900,000 Crown Maintenance General 175,000 - Total Crown Maintenance 175,000 - Special Assessment General -92,000 General Obligation Debt Service -372,938 Total Special Assessment -464,938 Total Nonmajor Governmental Funds 1,249,439 3,409,634 Total Governmental Funds 12,292,186 9,902,603 Enterprise Funds Water General -4,049,559 Total Water -4,049,559 - 48 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6.INTERFUNDS (Continued) b.Interfund Transfers (Continued) Transfers In Transfers Out Enterprise Funds (Continued) Sewer General $ -$336,770 General Obligation Debt Service -274,394 Total Sewer -611,164 Solid Waste General 1,000,000 - Capital Improvements -456,470 Total Solid Waste 1,000,000 456,470 Motor Vehicle Parking System General -2,972,390 ARPA 2,300,000 - Total Motor Vehicle Parking System 2,300,000 2,972,390 Total Enterprise Funds 3,300,000 8,089,583 Internal Service Funds Equipment Replacement General 800,000 - ARPA 1,600,000 - Total Equipment Replacement 2,400,000 - Total Internal Service Funds 2,400,000 - TOTAL PRIMARY GOVERNMENT $ 17,992,186 $ 17,992,186 Transfers between the primary government and component unit have been reclassified on the statement of activities. - 49 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7.LONG-TERM DEBT a.Changes in Long-Term Debt G.O. Debt Governmental Activities Interest Rate Final Maturity Date Balances January 1 Issued Payments Balances December 31 Current Portion Series 2013A 2.00%-4.75% 12/1/2033 $ 7,185,000 $ -$545,000 $ 6,640,000 $ 565,000 Series 2013B 2.00%-3.00% 12/1/2025 5,487,989 -1,838,117 3,649,872 1,892,504 Series 2014A 1.25%-5.00% 12/1/2034 6,735,000 -430,000 6,305,000 450,000 Series 2015A 2.00%-4.00% 12/1/2035 5,815,000 -345,000 5,470,000 355,000 Series 2015B 2.00%-3.00% 12/1/2022 1,725,000 -1,725,000 - - Series 2016A 2.00%-4.00% 12/1/2036 7,495,000 -435,000 7,060,000 455,000 Series 2016B 2.00%-3.00% 12/1/2026 4,080,000 -770,000 3,310,000 790,000 Series 2017A 3.00%-4.00% 12/1/2037 9,865,000 -500,000 9,365,000 520,000 Series 2017B 4.00%-5.00% 12/1/2027 5,088,879 -795,281 4,293,598 809,072 Series 2017C 2.05%-4.00% 12/1/2035 4,535,000 -245,000 4,290,000 260,000 Series 2018A 3.12%-5.00% 12/1/2043 24,385,000 -570,000 23,815,000 595,000 Series 2018B 2.29%-5.00% 12/1/2038 9,675,439 -105,263 9,570,176 108,187 Series 2018C 4.00%-5.00% 12/1/2038 4,768,551 -589,838 4,178,713 618,915 Series 2018D 3.70%-4.25% 12/1/2038 3,570,000 -180,000 3,390,000 185,000 Series 2019A 1.72%-2.85% 12/1/2043 12,750,000 -330,000 12,420,000 350,000 Series 2019B 1.66%-2.68% 12/1/2039 6,586,226 -233,360 6,352,866 247,086 Series 2020A&B 1.42%-1.61% 12/1/2040 16,853,881 -100,000 16,753,881 130,000 Series 2021 2.00%-5.00% 12/1/2041 11,939,500 -317,200 11,622,300 773,400 Subtotal G.O. debt governmental activities 148,540,465 -10,054,059 138,486,406 9,104,164 Bonds premium 11,170,693 -918,324 10,252,369 - OPEB liability - City 22,306,697 -1,957,015 20,349,682 834,338 OPEB liability - Internal Service Funds 142,366 -39,352 103,014 4,224 Net pension liability - Police Pension 85,774,906 43,160,349 -128,935,255 - Net pension liability - Firefighters’ Pension 83,846,627 26,729,021 -110,575,648 - Compensated absences payable - City 10,679,051 65,382 815,897 9,928,536 1,985,707 Compensated absences payable - Internal Service Funds 115,650 23,130 52,966 85,814 17,163 Claims payable 7,502,600 509,500 3,874,858 4,137,242 701,992 Subtotal other governmental activities liabilities 221,538,590 70,487,382 7,658,412 284,367,560 3,543,424 TOTAL GOVERNMENTAL ACTIVITIES DEBT AND LIABILITIES $ 370,079,055 $ 70,487,382 $ 17,712,471 $ 422,853,966 $ 12,647,588 - 50 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) a. Changes in Long-Term Debt (Continued) G.O. Debt Business- Type Activities Interest Rate Final Maturity Date Balances January 1 Issued Payments Balances December 31 Current Portion Series 2013A 2.00%-4.75% 12/1/2033 $ 1,375,000 $ - $ 90,000 $ 1,285,000 $ 95,000 Series 2014 1.25%-5.00% 12/1/2034 2,000,000 - 120,000 1,880,000 125,000 Series 2015A 2.00%-4.00% 12/1/2035 4,255,000 - 235,000 4,020,000 245,000 Series 2016A 2.00%-4.00% 12/1/2036 2,920,000 - 155,000 2,765,000 160,000 Series 2017A 3.00%-4.00% 12/1/2037 825,000 - 45,000 780,000 45,000 Series 2018B 2.29%-5.00% 12/1/2038 4,837,719 - 52,632 4,785,087 54,094 Series 2018C 4.00%-5.00% 12/1/2038 971,449 - 120,162 851,287 126,085 Series 2019B 1.66%-2.68% 12/1/2039 3,687,160 - 130,641 3,556,519 184,358 Series 2020 2.00%-5.00% 12/1/2040 11,106,119 - 140,000 10,966,119 366,571 Series 2021 2.00%-5.00% 12/1/2041 2,480,500 - 32,800 2,447,700 311,600 Subtotal G.O. debt business-type activities 34,457,947 - 1,121,235 33,336,712 1,712,708 IEPA loans 2.535%-3.590% Various 40,272,231 11,399,374 4,167,778 47,503,827 4,788,319 Bonds premium 2,739,943 - 194,969 2,544,974 - Leases payable - - - - - Compensated absences payable - City 982,352 196,471 503,038 675,785 135,157 Asset retirement obligations 5,081,625 - - 5,081,625 - OPEB liabilities 1,202,348 - 246,404 955,944 39,194 Subtotal other business-type activities liabilities 10,006,268 196,471 944,411 9,258,328 174,351 TOTAL BUSINESS-TYPE ACTIVITIES DEBT AND LIABILITIES $ 84,736,446 $ 11,595,845 $ 6,233,424 $ 90,098,867 $ 6,675,378 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. At December 31, 2022, the City reported an IMRF net pension asset of $39,092,326 in governmental activities and $9,267,670 in business-type activities. b. Business-Type Activities - IEPA Loans 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 IEPA loans issued in 1994 through 2022. 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 2042. Annual principal and interest on the loans are expected to require $5,581,775 of net revenues for the fiscal year 2023. The total principal and interest remaining to be paid on the loans is $53,342,502. Principal and interest paid for the current period and total customer net revenues were $4,944,959 and $13,627,653, respectively. - 51 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7.LONG-TERM DEBT (Continued) c.Debt Service Requirements The following schedule illustrates the annual debt service requirements to maturity for general obligation bonds. Fiscal Year General Obligation Bonds General Obligation Bonds Ending Payable from Governmental Activities Payable by Enterprise Funds December 31, Principal Interest Total Principal Interest Total 2023 $ 9,104,164 $ 5,225,660 $ 14,329,824 $ 1,712,708 $ 1,162,184 $ 2,874,892 2024 9,873,921 4,836,112 14,710,033 1,937,687 1,091,779 3,029,466 2025 10,226,121 4,437,788 14,663,909 2,013,796 1,011,868 3,025,664 2026 9,487,199 4,020,490 13,507,689 1,951,405 925,817 2,877,222 2027 8,818,941 3,627,235 12,446,176 2,033,130 841,884 2,875,014 2028-2032 39,496,884 13,262,685 52,759,569 10,860,930 2,998,955 13,859,885 2033-2037 31,340,311 6,924,862 38,265,173 9,005,045 1,289,069 10,294,114 2038-2042 17,593,865 2,538,130 20,131,995 3,822,011 173,190 3,995,201 2043-2045 2,545,000 111,000 2,656,000 - - - TOTAL $ 138,486,406 $ 44,983,962 $183,470,368 $ 33,336,712 $ 9,494,746 $ 42,831,458 The following schedule illustrates the annual debt service requirements to maturity for IEPA Loans. Fiscal Year IEPA Loans Ending Payable by Enterprise Funds December 31, Principal Interest Total 2023 $ 4,788,319 $ 793,456 $ 5,581,775 2024 4,561,223 692,831 5,254,054 2025 3,775,220 600,314 4,375,534 2026 3,557,080 528,421 4,085,501 2027 3,184,368 461,503 3,645,871 2028-2032 10,857,100 1,692,449 12,549,549 2033-2037 9,979,176 870,998 10,850,174 2038-2042 6,801,341 198,703 7,000,044 TOTAL $ 47,503,827 $ 5,838,675 $ 53,342,502 d.Asset Retirement Obligations The City has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various intake pipelines at the end of their estimated useful lives in accordance with federal , state and/or local requirements. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The City estimates the remaining useful lives of the intake pipelines are 5 2 years. - 52 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8.LESSOR DISCLOSURES In accordance with GASB Statement No. 87, Leases, the City’s lessor activity is as follows: The City entered into a lease arrangement on May 1, 2015 to lease commercial property. Payments of $15,000 to $20,101 are due to the City in monthly installments through December 31, 2041. The lease agreement is noncancelable and maintains an interest rate of 1.837%. During the fiscal year, the City collected $180,000 and recognized a $174,943 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $3,213,621 and $3,163,552, respectively, as of December 31, 2022. The City entered into a lease arrangement on October 1, 2016 to lease commercial property. Payments of $3,710 to $6,887 are due to the City in monthly installments through October 31, 2034. The lease arrangement is noncancelable and maintains an interest rate of 1.581%. During the fiscal year, the City collected $54,710 and recognized a $58,988 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetti ng deferred inflow of resource for this agreement is $712,953 and $698,028, respectively, as of December 31, 2022. The City entered into a lease arrangement on August 1, 2020 to lease commercial property. Payments of $110,352 to $133,525 are due to the City in annual installments through October 31, 2035. The lease arrangement is noncancelable and maintains an interest rate of 1.338%. During the fiscal year, the City collected $110,352 and recognized a $111,675 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $1,452,854 and $1,433,158, respectively, as of December 31, 2022. The City entered into a lease arrangement on August 1, 2019 to lease commercial property. Payments of $1,200 to $1,815 are due to the City in monthly installments through July 31, 2034. The lease arrangement is noncancelable and maintains an interest rate of 1.581%. During the fiscal year, the City collected $15,468 and recognized a $16,645 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $196,923 and $192,802, respectively, as of December 31, 2022. The City entered into a lease arrangement on December 1, 201 6 to lease commercial property. Payments of $637 to $1,130 are due to the City in variable monthly installments through December 31, 2031. The lease arrangement is noncancelable and maintains an interest rate of 1.458%. During the fiscal year, the City collected $8,507 and recognized a $10,148 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $94,281 and $91,333, respectively, as of December 31, 2022. - 53 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8.LESSOR DISCLOSURES (Continued) The City entered into a lease arrangement on April 12, 2018 to lease commercial property. Payments of $3,500 to $5,345 are due to the City in variable monthly installments through April 11, 2028. The lease arrangement is noncancelable and maintains an interest rate of 1.008%. During the fiscal year, the City collected $54,000 and recognized a $56,610 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $304,704 and $298,932, respectively, as of December 31, 2022. The City entered into a lease arrangement on December 1, 2019 to lease commercial property. Payments of $2,500 to $3,073 are due to the City in variable monthly installments through November 30, 2026. The lease arrangement is noncancelable and maintains an interest rate of 0.830%. During the fiscal year, the City collected $32,230 and recognized a $33,804 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $135,121 and $132,401, respectively, as of December 31, 2022. 9.INDIVIDUAL FUND DISCLOSURES a.General Obligation Debt Service Fund 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; revenues from the Motor Vehicle Parking System Fund associated with the Maple Gar age, Sherman Garage, and Church Street Self-Park Garage; and General Obligation Debt Service Fund interest income. b.Water Fund 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 December 31, 2040. The City provides potable Lake Michigan water to the Nor thwest 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. - 54 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9.INDIVIDUAL FUND DISCLOSURES (Continued) b.Water Fund (Continued) The City provides potable Lake Michigan water to the Morton Grove Niles Water Commission (MGNWC) under a long-term water supply contract. Sale of potable water under this contract began January 24, 2017 and continues until December 31, 2056. Under the terms of the current contract, the City is to supply MGNWC sufficient potable Lake Michigan water to satisfy MGNWC ’s maximum 24-hour demands for Lake Michigan water for resale to MGNW’s customers. The City also provides potable Lake Michigan water to the Village of Lincolnwood (Lincolnwood) under a long-term water supply contract. Sale of potable water under this contract began August 24, 2018 and continues until August 24, 2047. The Water Fund revenues reflect payment from the Village of Skokie at the rate of $1.2 9 per 1000 gallons as agreed upon during 2022. c.Special Service District No. 6 Special Service District No. 6 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 2022 was $227,835 which includes an estimated allowance amount of $6,835. d.Special Service District No. 7 On December 9, 2019, the City Council adopted Ordinance No. 159 -O-19 which established Special Service District No. 7. Special Service District No. 7 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 2022 was $146 ,392 which includes an estimated allowance amount of $4,264. e.Special Service District No. 8 On December 9, 2019, the City Council adopted Ordinance No. 160-O-19 which created Special Service District No. 8. Special Service District No. 8 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 2022 was $62 ,006 which includes an estimated allowance amount of $1,806. - 55 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9.INDIVIDUAL FUND DISCLOSURES (Continued) f.Special Service District No. 9 On December 9, 2019, the City Council adopted Ordinance No. 161 -O-19 which terminated the life of Special Service District No. 4 and reestablished the Special Service Area as Special Service Area No. 9. Special Service District No. 9 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 2022 was $610,995 which includes an estimated allowance amount of $18,330. 10.FUND EQUITY a.Restricted Net Position - Fiduciary Funds Police Pension Fund for employee pension benefits $ 150,950,058 Firefighters’ Pension Fund restrictions for employee pension benefits 99,046,036 TOTAL FIDUCIARY FUNDS $ 249,996,094 b.Assigned Fund Balances General Fund Assigned for Arts Council $ 3,948 Assigned for parkway trees 60,722 Assigned for Butterfield Sculpture 29,393 Assigned for Noyes Center 312,170 Assigned for recreation group activities 207,123 Assigned for parks and recreation 468,080 Assigned for Mayor’s program 93,679 Other assignments 944,198 Assigned for subsequent year’s budget 1,225,258 Total general fund 3,344,571 Nonmajor Government Funds Assigned for capital improvements 7,762,268 Total nonmajor government funds 7,762,268 TOTAL ASSIGNED FUND BALANCES $ 11,106,839 - 56 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11.RISK MANAGEMENT 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 and $10,000 for artwork) 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 $20,000,000. Workers’ compensation and general liability risks are accounted for in the Insurance Fund. The fund was established on March 1, 1994 to administer general liability claims and workers ’ compensation programs on a cost-reimbursement basis. The fund accounts for the aforementioned liabilities of the City , but does not constitute a transfer of risk from the City. The City records estimated liabilities for workers’ compensation and for general claims. Claims liabilities are based on estimates of the ultimate cost of reported claims including future claim adjustment expenses. Changes in the balances of claims liabilities during the past two fiscal years are as follows: Workers’ Compensation General Liability Total DECEMBER 31, 2020 $ 1,882,500 $ 6,372,000 $ 8,254,500 New claims/estimate revisions 782,630 25,000 807,630 Claims payments (572,530) (987,000) (1,559,530) DECEMBER 31, 2021 2,092,600 5,410,000 7,502,600 New claims/estimate revisions 521,059 (595,887) (74,828) Claims payments (1,171,417) (2,119,113) (3,290,530) DECEMBER 31, 2022 $ 1,442,242 $ 2,695,000 $ 4,137,242 - 57 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11.RISK MANAGEMENT (Continued) 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 beyo nd 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. 12.CONTINGENCIES 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. 13.JOINT VENTURES Solid Waste Agency of Northern Cook County 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 B oard 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. - 58 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13.JOINT VENTURES (Continued) Solid Waste Agency of Northern Cook County (Continued) The authority to designate management , influence operations, and formulate budgets rests with the Board of Directors and Executive Committee. No one member has the ability to significantly influence operations; therefore , the Agency is not a component unit of any other governmental reporting entity. Under the 1992 project use agreement executed by the City with the Agency , the City’s share of project costs, including debt service and disposal , is based on its share of 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. Complete financial statements for the Agency can be obtained at 77 W. Hintz Rd., Suite 200, Wheeling, Illinois, 60090. 14.OTHER POSTEMPLOYMENT BENEFITS a.Plan Administration The City administers 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 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. b.Benefits Provided The City’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. To be eligible for benefits, an employee must qualify for retirement under one of the City’s retirement plans. For certain disabled employees who qualify for health insurance benefits under the Public Safety Employee Benefits Act (PSEBA), the City is required to pay 100% of the cost of basic health insurance for the employee and their dependents for their lifetime. - 59 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14.OTHER POSTEMPLOYMENT BENEFITS (Continued) b.Benefits Provided (Continued) The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental , nervous and substance abuse care; vision care; dental care; and prescriptions. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer and the City’s plan becomes secondary. c.Membership At December 31, 2022, membership consisted of: Inactive fund members and beneficiaries currently receiving benefit payments 71 Inactive fund members entitled to but not yet receiving benefit payments 8 Active fund members 690 TOTAL 769 Participating employers 1 d.Contributions Contribution requirements are established through Illinois State laws. The City and the Library implicitly contribute 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 $595 for single coverage to $2 ,134 for family coverage. The City pays 100% of health care premiums for police officer s 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 $595 for single coverage to $2,134 for family coverage. For the year ended December 31, 2022, the estimated contribution to the plan is $890,214. The 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. - 60 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14.OTHER POSTEMPLOYMENT BENEFITS (Continued) e.Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation performed as of December 31, 2022 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2022 Measurement date December 31, 2022 Actuarial cost method Entry-age normal Assumptions Inflation 3.50% Discount rate 4.05% Healthcare cost trend rates 6.75% in Fiscal 2022, 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 2020 using scale MP2020. f.Discount Rate 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, 2022. - 61 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. OTHER POSTEMPLOYMENT BENEFITS (Continued) g. Changes in the Total OPEB Liability Total OPEB Liability BALANCES AT JANUARY 1, 2022 $ 24,064,145 Changes for the period Service cost 1,613,298 Interest 434,590 Changes in assumptions (1,428,232) Difference between expected and actual experience (2,081,084) Benefit payments (890,214) Other changes - Net changes (2,351,642) BALANCES AT DECEMBER 31, 2022 $ 21,712,503 There were changes in assumptions related to the discount rate in 202 2. h. Rate Sensitivity 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 4.05% 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 (3.05%) or 1 percentage point higher (5.05%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (3.05%) (4.05%) (5.05%) Total OPEB liability $ 24,304,622 $ 21,712,503 $ 19,503,421 - 62 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. OTHER POSTEMPLOYMENT BENEFITS (Continued) h. Rate Sensitivity (Continued) The table below presents the total OPEB liability of the City calculated using the healthcare rate of 4.50% to 6.75% as well as what the City’s total OPEB liability would be if it were calculated using a healthcare rate that is 1 percentage point lower (3.50% to 5.75%) or 1 percentage point higher (5.50% to 7.75%) than the current rate: 1% Decrease Current Healthcare Rate 1% Increase (3.50% to 5.75%) (4.50% to 6.75%) (5.50% to 7.75%) Total OPEB liability $ 18,692,198 $ 21,712,503 $ 25,512,236 i. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2022, the City recognized OPEB expense of $1,881,440. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: City Library Total Deferred Outflows of Deferred Inflows of Deferred Outflows of Deferred Inflows of Deferred Outflows of Deferred Inflows of Resources Resources Resources Resources Resources Resources Difference between expected and actual experience $ - $ 3,926,734 $ - $ 55,734 $ - $ 3,982,468 Changes in assumption 3,913,958 1,985,934 55,553 28,187 3,969,511 2,014,121 Net difference between projected and actual earnings on pension plan investments - - - - - - TOTAL $ 3,913,958 $ 5,912,668 $ 55,553 $ 83,921 $ 3,969,511 $ 5,996,589 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Year Ending December 31, 2023 $ (166,448) 2024 (166,448) 2025 (166,448) 2026 (166,448) 2027 (166,448) Thereafter (1,194,838) TOTAL $ (2,027,078) - 63 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS The City contributes to three different defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer public employee retirement system; the Police Pension Plan, which is a single-employer pension plan; and the Firefighters’ Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. None of the pension plans issue separate reports on the pension plans. However, IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. Those reports can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523 or at imrf.org. The table below is a summary for all pension plans as of and for the year ended December 31, 2022: Police Firefighters’ IMRF Pension Pension Total Net pension liability (asset) $ (48,359,996) $ 128,935,255 $ 110,575,648 $ 191,150,907 Deferred outflows of resources 5,983,678 26,898,174 20,103,248 52,985,100 Deferred inflows of resources 36,650,321 1,243,238 1,032,060 38,925,619 Pension expense (income) (6,130,745) 14,148,534 12,033,835 20,051,624 a. Plan Descriptions Illinois Municipal Retirement Fund Plan Administration and Benefits Provided All employees (other than those covered by the Police Pension Plan or Firefighters’ Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. 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. - 64 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Plan Administration and Benefits Provided (Continued) 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. Contributions These benefit provisions and all other requirements are established by state statute. Participating members are required to contribute 4.50% of their annual salary to IMRF. The City is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer contribution for the fiscal year ended December 31, 2022 was 4.66% of covered payroll. Plan Membership At December 31, 2021 (most recent information available), IMRF membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 709 Inactive employees entitled to but not yet receiving benefits 418 Active employees 501 TOTAL 1,628 Actuarial Assumptions The City’s net pension liability (asset) was measured as of December 31, 2021, 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. - 65 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Actuarial Assumptions (Continued) Actuarial valuation date December 31, 2021 Actuarial cost method Entry-age normal Assumptions Inflation 2.25% Salary increases 2.85% to 13.75% Interest rate 7.25% Asset valuation method Fair value For nondisabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables and future mortality improvements projected using scale MP -2020. For disabled retirees, the Pub- 2010, Amount-Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables and future mortality improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-Weighted, below-median income, General, Employee, Male and Female (both unadjusted) tables and future mortality improvements projected using scale MP-2020. Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that the City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the IMRF’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments of 7.25% was used to determine the total pension liability. - 66 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Changes in the Net Pension Liability (Asset) (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Liability Net Position (Asset) BALANCES AT JANUARY 1, 2021 $ 261,328,458 $ 290,497,291 $ (29,168,833) Changes for the period Service cost 3,420,369 - 3,420,369 Interest 18,507,004 - 18,507,004 Difference between expected and actual experience 6,705,189 - 6,705,189 Changes in assumptions - - - Employer contributions - 3,245,589 (3,245,589) Employee contributions - 1,806,941 (1,806,941) Net investment income - 49,648,106 (49,648,106) Benefit payments and refunds (15,539,235) (15,539,235) - Administrative expense - - - Other (net transfer) - (1,512,861) 1,512,861 Net changes 13,093,327 37,648,540 (24,555,213) BALANCES AT DECEMBER 31, 2021 $ 274,421,785 $ 328,145,831 $ (53,724,046) The table presented above includes amounts for both the City and the Library. The City ’s proportionate share of the net pension liability at January 1 , 2021, the employer contributions, and the net pension liability (asset) at December 31, 2022 was $(26,146,070), $2,921,535, and ($48,359,996), respectively. The Library’s proportionate share of the net pension liability at January 1 , 2021, the employer contributions and the net pension liability (asset) at December 31, 2022 was $(3,022,763), $324,054, and $(5,364,050), respectively. - 67 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. 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 For the year ended December 31, 2022, the City recognized pension income of $9,774,674. At December 31, 2022, the City and the Library reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: City Library Total Deferred Outflows of Deferred Inflows of Deferred Outflows of Deferred Inflows of Deferred Outflows of Deferred Inflows of Resources Resources Resources Resources Resources Resources Difference between expected and actual experience $ 4,250,580 $ 810,274 $ 471,471 $ 89,875 $ 4,722,051 $ 900,149 Changes in assumption - 760,963 - 84,405 - 845,368 Net difference between projected and actual earnings on pension plan investments - 35,079,084 - 3,890,943 - 38,970,027 Employer contributions subsequent to the measurement date 1,733,098 - 192,234 - 1,925,332 - TOTAL $ 5,983,678 $ 36,650,321 $ 663,705 $ 4,065,223 $ 6,647,383 $ 40,715,544 $1,925,332 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of net pension liability in the reporting year ending December 31, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized in pension expense as follows: Year Ending December 31, City Library Total 2023 $ (6,989,048) $ (775,219) $ (7,764,267) 2024 (12,238,433) (1,357,477) (13,595,910) 2025 (7,947,389) (881,518) (8,828,907) 2026 (5,224,871) (579,538) (5,804,409) 2027 - - - Thereafter - - - TOTAL $ (32,399,741) $ (3,593,752) $ (35,993,493) - 68 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Discount Rate Sensitivity 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 7.25% 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 (6.25%) or 1 percentage point higher (8.25%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net pension liability (asset) City $ (20,878,398) $ (48,359,996) $ (70,164,698) Library (2,315,814) (5,364,050) (7,782,609) TOTAL $ (23,194,212) $ (53,724,046) $ (77,947,307) Police Pension Plan Plan Administration Police sworn personnel are covered by the Police Pension Plan. Although this is a single- employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The City accounts for the Police Pension Plan as a pension trust fund. The plan is governed by a five-member Board of Trustees. Two members of the Board of Trustees are appointed by the City’s Council, one member is elected by pension beneficiaries and two members are elected by active police employees. 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. - 69 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Plan Membership At December 31, 2022, the Police Pension Plan membership consisted of: Inactive plan members currently receiving benefits 196 Inactive plan members entitled to but not yet receiving benefits 23 Active plan members 132 TOTAL 351 Benefits Provided The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one -half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.50% 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 eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit 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 be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the greater of the average monthly salary obtaining by dividing the total salary during the 48 consecutive months of service within the last of 60 months in which the total salary was the highest by the number of months in that period; or the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officers’ salary for pension purposes is capped at $1 13,645, plus the lesser of ½ of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up t o - 70 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Benefits Provided (Continued) 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires , or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3 % or ½ of the change in the Consumer Price Index for the proceeding calendar year. Contributions Covered employees are required by ILCS 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 Police Pension Plan as actuarially determined by an enrolled actuary, including amounts for administrative costs. Benefits and refunds are recorded as a liability when due and payable. Effective January 1, 2011, the City has until the year 2040 to fund 90% of the past service cost for the Police Pension Pla n. However, the City has elected to fund 100% of the past service cost by 2040. The City’s contribution was 85.1% of covered payroll for the year ended December 31, 2022. Investment Policy 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, The 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 exce ed 65% of the total net position of the Fund), contracts and agreements of life 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 ye ar, no changes to the investment policy were approved by the Board of Trustees. - 71 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Investment Policy (Continued) 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 : Asset Class Target Long-Term Expected Real Rate of Return Domestic Large-Cap Equities 52.00% 1.80% Domestic Small-Cap Equities 5.00% 2.10% International Equities 5.00% 4.20% Fixed Income 32.00% 0.30% Real estate 3.00% 3.40% Cash 3.00% -1.00% 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, 2022 are listed in the table above. Investment Valuations All investments in the plan 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. - 72 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Investment Rate of Return For the year ended December 31, 2022, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (16.78%). The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Fund’s deposits may not be returned to them. The Fund’s investment policies do not require pledging of collateral for all bank balances in excess of federal depository insurance, since flow-through FDIC insurance is available for the Fund ’s deposits with financial institutions. Interest Rate Risk The following table presents the investments and maturities of the Fund ’s debt securities as of December 31, 2022: Investment Maturities (in Years) Investment Type Fair Value Less than 1 1-5 6-10 Greater than 10 Corporate bonds $ 12,376,583 $ 791,465 $ 2,676,651 $ 6,106,766 $ 2,801,701 U.S. Treasury obligations 18,821,300 1,800,391 6,284,624 5,203,724 5,532,561 U.S Agency obligations 10,895,016 3,058 214,923 122,242 10,554,793 TOTAL $ 42,092,899 $ 2,594,914 $ 9,176,198 $ 11,432,732 $ 18,889,055 The Fund categorizes its fair value measurements within the fair value hierarchy established by GAAP. 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 identic al assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Fund has the following recurring fair value measurements as of December 31, 2022: the U.S. Treasury obligations, equity securitie s, and equity mutual funds are valued using quoted prices in active markets for identical assets (Level 1 inputs), corporate bonds and U.S. agency obligations are valued using quoted matrix pricing models (Level 2 inputs). - 73 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Interest Rate Risk (Continued) Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy , the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquid ity for operating funds and maximizing yields for funds not needed within a one-year period. The investment policy does not limit the maximum maturity length of investments in the Fund. Credit Risk 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 and the corporate bonds are rated between Baa3 and Aaa. The Illinois Funds and IMET are rated Aaa. Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Fund will not be able to recover the value of its investments that are in possession of an outside part y. To limit its exposure, the Fund’s investment policy requires 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 Fund’s agent separate from where the investment was purchased in the Fund’s name. The Illinois Funds, IMET, and equity mutual funds are not subject to custodial credit risk. Concentration of Credit Risk There are no significant investments (other than United States Government guaranteed obligations and mutual funds) in any one organization that represents 5% or more of the Fund’s investments. - 74 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Pooled Real Estate Fund The Fund invests in a pooled real estate fund measured at net asset value (NAV) valued at $1,359,644 as of December 31, 2022. This investment focuses primarily on private equity commercial real estate, which will generate returns based on lease income and appreciation in building values. There are no unfunded commitments at December 31, 2022. Requests for withdrawals and transfers may be subject to contractual limitations in the investment, which allows for the investment to pay them out in a series of payments over the span of three years from the effective dat e of the limitation, begun on July 1, 2022. Changes in the Net Pension Liability (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2022 $ 268,350,076 $ 182,575,170 $ 85,774,906 Changes for the period Service cost 3,614,698 - 3,614,698 Interest 17,149,791 - 17,149,791 Difference between expected and actual experience 2,912,380 - 2,912,380 Changes in assumptions 4,102,024 - 4,102,024 Changes of benefit terms - - - Employer contributions - 11,405,076 (11,405,076) Employee contributions - 1,327,634 (1,327,634) Net investment income - (28,069,391) 28,069,391 Benefit payments and refunds (16,243,656) (16,243,656) - Administrative expense - (44,775) 44,775 Net changes 11,535,237 (31,625,112) 43,160,349 BALANCES AT DECEMBER 31, 2022 $ 279,885,313 $ 150,950,058 $ 128,935,255 - 75 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Changes in the Net Pension Liability (Continued) The plan’s fiduciary net position as a percentage of the total pension liability was 53.93% at December 31, 2022. In 2022, there were changes in assumptions related to the mortality tables . Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2022, using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2022 Measurement date December 31, 2022 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 3.00% to 9.00% Interest rate 6.50% Cost of living adjustments Tier 1 at 3.00% Tier 2 at 1.25% Asset valuation method Fair value The discount rate was based on The Bond Buyer 20 -Bond GO Index, which is based on an average of certain general obligation municipal bonds maturing in 20 years and having an average rating equivalent of Moody’s Aa2 and Standard & Poor’s AA. Mortality rates were based on the PubS.H-2010 Study using improvement scale MP- 2020. - 76 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Discount Rate The discount rate used to measure the total 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 ’s contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of cu rrent plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the City calculated using the discount rate of 6.50% as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (5.50%) (6.50%) (7.50%) Net pension liability $ 167,785,098 $ 128,935,255 $ 97,274,544 - 77 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2022, the City recognized police pension expense of $14,148,534. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the police pension from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 6,921,308 $ - Changes in assumption 4,657,422 1,243,238 Net difference between projected and actual earnings on pension plan investments 15,319,444 - TOTAL $ 26,898,174 $ 1,243,238 Amounts reported as deferred outflows of resources and deferred inflows of resources related to the police pension will be recognized in pension expense as follows: Year Ending December 31, 2023 $ 2,662,471 2024 6,886,568 2025 6,738,773 2026 9,367,124 2027 - Thereafter - TOTAL $ 25,654,936 - 78 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan Plan Administration Fire sworn personnel are covered by the Firefighters’ Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The City accounts for the Firefighters’ Pension Plan as a pension trust fund. The plan is governed by a five-member Board of Trustees. Two members of the Board of Trustees are appointed by the City’s Council, one member is elected by pension beneficiaries and two members are elected by active firefighter employees. 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. Plan Membership At December 31, 2022, the Firefighters’ Pension Plan membership consisted of: Inactive plan members currently receiving benefits 148 Inactive plan members entitle to but not yet receiving benefits 5 Active plan members 104 TOTAL 257 - 79 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Benefits Provided The Firefighters’ Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held at the date of retirement. The annual benefit shall be increased by 2.50% 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 ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a covered employee 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 be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the greater of the average monthly salary obtaining by dividin g the total salary during the 48 consecutive months of service within the last of 60 months in which the total salary was the highest by the number of months in that period; or the average monthly salary obtained by dividing the total salary of the firefig hter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighters’ salary for pension purposes is capped at $1 13,645, plus the lesser of ½ of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.50% of such salary for each additional year of service over 20 years up t o 30 years to a maximum of 75% of such salary. Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or ½ of the change in the Consumer Price Index for the proceeding calendar year. - 80 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Contributions Covered employees are required to contribute 9.455% of their base salary to the Firefighters’ 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 finance the Firefighters’ Pension Plan as actuarially determined by an enrolled actuary including amounts for administrative costs. Benefits and refunds are recorded as a liability when due and payable. Effective January 1, 2011, the City has until the year 2040 to fund 90% of the past services costs for the Firefighters’ Pension Plan. However, the City has elected to fund 100% of the past service cost by 2040. The City’s contribution was 84.2% of covered payroll for the year ended December 31, 2022. Illinois Firefighters’ Pension Investment Fund The Illinois Firefighters’ Pension Investment Fund (IFPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate firefighter pension funds. IFPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds. Participation in IFPIF by Illinois suburban and downstate firefighter pension funds is mandatory. The pension fund transferred their investment assets to the IFPIF in January 2022. Deposits with Financial Institutions The plan retains all of its available cash with one financial institution. Available cash is determined to be that amount which is required for the current expenditures of the plan. The excess of available cash is required to be transferred to IFPIF for purposes of the long-term investment for the plan. Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Fund’s deposits may not be returned to it. The Fund’s investment policy requires that any funds deposited directly in financial institutions should be made with fully federally insured financial institutions and that any deposits in excess of FDIC insurance should be collateralized at 110% of the fair market value of the deposits. The collateral will be held in a safekeeping by a t hird party and evidenced by a written agreement. - 81 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Investments Investments of the plan are combined in a commingled external investment pool and held by IFPIF. A schedule of investment expenses is included in IFPIF’s annual report. For additional information on IFPIF’s investments, please refer to their annual report as of June 30, 2022. A copy of that report can be obtained from IFPIF at 1919 South Highland Avenue, Building A, Suite 237, Lombard, Illinois 60148 or at https://ifpif.org. Fair Value Measurement The plan categorizes fair value measurements within the fair value hierarchy established by GAAP. 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 plan held no investments subject to fair value measurement at December 31, 2022. Net Asset Value The Net Asset Value (NAV) of the plan’s pooled investment in IFPIF was $86,128,901 at December 31, 2022. The pooled investments consist of the investments as noted in the target allocation table available at https://ifpif.org. Investments in IFPIF are valued at IFPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at December 31, 2022. The plan may redeem shares by giving notice by 5:00 pm central time on the 1st of each month. Requests properly submitted on or before the 1st of each month will be processed for redemption by the 14th of the month. Expedited redemptions may be processed at the sole discretion of IFPIF. Investment Policy IFPIF’s current investment policy was adopted by the Board of Trustees on June 17, 2022. IFPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IFPIF shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 4 of the Illinois Pension Code. - 82 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Investment Rate of Return For the year ended December 31, 2022, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (14.94%). The money-weighted rate of return expresses investment performance , net of investment expense, adjusted for the changing amounts actually invested. Changes in the Net Pension Liability (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2022 $ 198,439,141 $ 114,592,514 $ 83,846,627 Changes for the period Service cost 2,889,155 - 2,889,155 Interest 12,731,909 - 12,731,909 Changes in benefit terms - - - Difference between expected and actual experience 288,722 - 288,722 Changes in assumptions 6,178,299 - 6,178,299 Employer contributions - 9,707,213 (9,707,213) Employee contributions - 1,089,524 (1,089,524) Net investment income - (15,351,364) 15,351,364 Benefit payments and refunds (10,905,542) (10,905,542) - Administrative expense - (86,309) 86,309 Net changes 11,182,543 (15,546,478) 26,729,021 BALANCES AT DECEMBER 31, 2022 $ 209,621,684 $ 99,046,036 $ 110,575,648 - 83 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Changes in the Net Pension Liability (Continued) The plan’s fiduciary net position as a percentage of the total pension liability was 47.25% at December 31, 2022. See the schedule of changes in the employer’s net pension liability and related ratios in the required supplementary information for additional informa tion related to the funded status of the Fund. In 2022, there were changes in assumptions related to the mortality table. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2022 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2022 Measurement date December 31, 2022 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 3.62% to 7.36% Interest rate 6.50% Cost of living adjustments Tier 1 at 3.00% Tier 2 at 1.25% Asset valuation method Fair value The discount rate was based on The Bond Buyer 20 -Bond GO Index, which is based on an average of certain general obligation municipal bonds maturing in 20 years and having an average rating equivalent of Moody’s Aa2 and Standard & Poor’s AA. Mortality rates were based on the PubS .H-2010 Study using improvement scale MP-2020 applied on a fully generational basis. - 84 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Discount Rate The discount rate used to measure the total 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 con tributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the net pension liability of the City calculated using the discount rate of 6.50% as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 p ercentage point lower (5.50%) or 1 percentage point higher (7.50%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (5.50%) (6.50%) (7.50%) Net pension liability $ 139,489,138 $ 110,575,648 $ 86,981,782 - 85 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2022, the City recognized firefighters’ pension expense of $12,033,835. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the firefi ghters’ pension from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 3,517,323 $ - Changes in assumption 6,665,163 1,032,060 Net difference between projected and actual earnings on pension plan investments 9,920,762 - TOTAL $ 20,103,248 $ 1,032,060 Amounts reported as deferred outflows of resources and deferred inflows of resources related to the firefighters pension will be recognized in pension expense as follows: Year Ending December 31, 2023 $ 2,245,920 2024 5,137,447 2025 4,620,499 2026 5,989,485 2027 1,077,837 Thereafter - TOTAL $ 19,071,188 - 86 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 16. PENSION TRUST FUNDS Fiduciary Funds Summary Financial Information The following is summary financial information for the Police Pension Plan and the Firefighters’ Pension Plan. Statement of Net Position Pension Trust Police Pension Firefighters’ Pension Total ASSETS Cash and cash equivalents $ 4,002,058 $ 11,015,644 $ 15,017,702 Investments U.S. Treasury obligations 18,821,300 - 18,821,300 U.S. agency obligations 10,895,016 - 10,895,016 Corporate bonds 12,376,583 - 12,376,583 Common stock 44,736,352 - 44,736,352 Equity mutual funds 56,227,705 - 56,227,705 Real estate 1,359,644 - 1,359,644 Investments held in the Illinois Firefighters’ Pension Investment Fund - 86,128,901 86,128,901 Prepaid items - 9,988 9,988 Receivables Accounts - 3,123 3,123 Accrued interest 334,260 32,566 366,826 Due from City 2,197,140 1,868,725 4,065,865 Total assets 150,950,058 99,058,947 250,009,005 LIABILITIES Accounts payable - 12,911 12,911 Total liabilities - 12,911 12,911 NET POSITION HELD IN TRUST FOR PENSION BENEFITS $ 150,950,058 $ 99,046,036 $ 249,996,094 - 87 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 16. PENSION TRUST FUNDS (Continued) Fiduciary Funds Summary Financial Information (Continued) Changes in Plan Net Position Pension Trust Police Pension Firefighters’ Pension Total ADDITIONS Contributions Employer $ 11,405,076 $ 9,707,213 $ 21,112,289 Plan members 1,327,634 1,089,524 2,417,158 Total contributions 12,732,710 10,796,737 23,529,447 Investment income Net depreciation in fair value of investments (31,113,684) (16,137,276) (47,250,960) Interest 3,368,544 948,183 4,316,727 Total investment income (27,745,140) (15,189,093) (42,934,233) Less investment expense (324,251) (162,271) (486,522) Net investment income (28,069,391) (15,351,364) (43,420,755) Total additions (15,336,681) (4,554,627) (19,891,308) DEDUCTIONS Administrative 44,775 86,309 131,084 Benefits and refunds 16,243,656 10,905,542 27,149,198 Total deductions 16,288,431 10,991,851 27,280,282 NET DECREASE (31,625,112) (15,546,478) (47,171,590) NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 182,575,170 114,592,514 297,167,684 December 31 $ 150,950,058 $ 99,046,036 $ 249,996,094 - 88 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 17. EVANSTON LIBRARY COMPONENT UNIT This report contains the Evanston Public Library (the Library), which is included as a component unit. Financial information is presented as a discrete column in the statement of net position and statement of activities. In addition to the basic financial statements and the preceding notes to financial statements which apply, the following additional disclosures are considered necessary for a fair presentation. a. Basis of Accounting/Measurement Focus The Library follows the accrual basis of accounting and the flow of economic resources measurement focus at the government-wide level and the modified accrual basis of accounting and the current financial resources measurement focus for its governmental funds. b. Deposits and Investments 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 The 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 i nvestment 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. - 89 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 17. EVANSTON LIBRARY COMPONENT UNIT (Continued) b. Deposits and Investments (Continued) 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 minim ize 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. The Illinois Funds, created by the Illinois State Legislature under the control of the State Comptroller, operates as qualified external investment pools in accordance with th e criteria established in GASB Statement No. 79 , Certain External Investment Pools and Pool Participants, and thus, reports all investments at amortized cost rather than fair value. The investment in The Illinois Funds by participants is also reported at a mortized cost. The 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 Administrati ve Office at Illinois Business Center, 400 West Monroe Street, Suite 401, Springfield, Illinois 62704. The Illinois Metropolitan Investment Fund (IMET) is a local government investment pool. Created in 1996 as a not-for-profit trust formed under the Intergovernmental Cooperation Act and the Illinois Municipal Code . IMET was formed to provide Illinois government agencies with safe, liquid, attractive alternatives for investing and is managed by a Board of Trustees elected from the participating members . IMET offers participants two separate vehicles to meet their investment needs. The IMET Core Fund is designed for public funds that may be invested for longer than one year. The Core Fund carries the highest rating available (AAAf/bf) from Moody's for su ch funds. Member withdrawals can be made from the core fund with a five-day notice. The IMET Convenience Fund (CVF) is designed to accommodate funds requiring high liquidity, including short term cash management programs and temporary investment of bond proceeds. It is comprised of collateralized and FHLB LoC backed bank deposits, FDIC insured certificates of deposit and US government securities . Member withdrawals are generally on the same day as requested. Investments in IMET are valued at IMET’s share price, which is the price the investment could be sold . c. 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 , 2022, all of the Library’s deposits were insured or collateralized by an agent of the Library in the Library’s name. - 90 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 17. EVANSTON LIBRARY COMPONENT UNIT (Continued) c. Custodial Credit Risk (Continued) 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. The Illinois Funds are not subject to custodial credit risk. d. Capital Asset Activity Library capital asset activity for the year ended December 31, 2022, was as follows: Beginning Balances Increases Decreases Ending Balances Capital assets not being depreciated Land $ 311,380 $ - $ - $ 311,380 Total capital assets not being depreciated/amortized 311,380 - - 311,380 Capital assets being depreciated Buildings and improvements 20,751,236 177,014 - 20,928,250 Office equipment and furniture 2,285,009 - - 2,285,009 Infrastructure 230,006 - - 230,006 Library collections 8,448,435 - 14,874 8,433,561 Capitalized leases 266,190 - - 266,190 Total capital assets being depreciated/amortized 31,980,876 177,014 14,874 32,143,016 Less accumulated depreciation/amortization for: Buildings and improvements 10,434,835 547,077 - 10,981,912 Office equipment and furniture 2,285,009 - - 2,285,009 Infrastructure 184,503 14,757 - 199,260 Library collections 8,399,918 17,408 7,437 8,409,889 Capitalized leases 266,190 - - 266,190 Total accumulated depreciation/amortization 21,570,455 579,242 7,437 22,142,260 Total capital assets being depreciated/amortized, net 10,410,421 (402,228) 7,437 10,000,756 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 10,721,801 $ (402,228) $ 7,437 $ 10,312,136 - 91 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 17. EVANSTON LIBRARY COMPONENT UNIT (Continued) e. Long-Term Debt Long-term obligations activity for the year ended December 31, 2022 was as follows: Interest Rate Final Maturity Date Balance January 1, 2022 Issued Payments Balance December 31, 2022 Due Within One Year General obligation debt Series 2013B 2.00% - 3.00% 12/1/2025 $ 112,011 $ - $ 26,883 $ 85,128 $ 27,496 Series 2016A 2.00% - 4.00% 12/1/2036 530,000 - 30,000 500,000 30,000 Series 2017A 3.00% - 4.00% 12/1/2037 1,185,000 - 55,000 1,130,000 60,000 Series 2017B 4.00% - 5.00% 12/1/2027 446,121 - 69,719 376,402 70,928 Series 2018B 2.29% - 5.00% 12/1/2038 2,031,842 - 22,105 2,009,737 22,719 Series 2019B 1.66% - 2.68% 12/1/2039 1,721,613 - 60,999 1,660,614 64,587 Total general obligation debt 6,026,587 - 264,706 5,761,881 275,730 Bonds premiums 502,011 - 32,990 469,021 - Total OPEB Liability 412,734 - 108,871 303,863 12,458 Compensated absences payable 417,441 18,347 83,488 352,300 70,460 TOTAL LONG-TERM DEBT $ 7,358,773 $ 18,347 $ 490,055 $ 6,887,065 $ 358,648 The Library reported a net pension asset of $5,364,050 at December 31, 2022. Debt service requirements to maturity are as follows: Fiscal Year Ending December 31, Principal Interest Total 2023 $ 275,730 $ 232,183 $ 507,913 2024 353,392 221,284 574,676 2025 370,083 206,866 576,949 2026 356,396 191,425 547,821 2027 372,929 176,153 549,082 2028-2032 1,644,583 667,185 2,311,768 2033-2037 1,944,644 322,887 2,267,531 2038-2042 444,124 26,643 470,767 TOTAL $ 5,761,881 $ 2,044,626 $ 7,806,507 - 92 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 17. EVANSTON LIBRARY COMPONENT UNIT (Continued) f. Employee Retirement System The Library contributes to IMRF an agent multiple -employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois through the City. 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 sta tements and required supplementary information. That report may be obtained by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. The employees of the Library are pooled with the employees of City fo r purposes of actuarial valuation. - 93 - REQUIRED SUPPLEMENTARY INFORMATION Original Final Budget Budget Actual Variance REVENUES Taxes 61,809,164$ 61,809,164$ 76,461,370$ 14,652,206$ Licenses and permits 10,498,550 10,498,550 12,562,065 2,063,515 Intergovernmental 24,292,442 24,292,442 28,225,468 3,933,026 Charges for services 9,358,325 9,415,325 13,945,833 4,530,508 Fines 3,395,500 3,395,500 3,790,046 394,546 Investment income 55,000 55,000 309,972 254,972 Miscellaneous 2,670,100 2,613,100 2,290,941 (322,159) Total revenues 112,079,081 112,079,081 137,585,695 25,506,614 EXPENDITURES General management and support 19,575,363 19,575,363 19,318,298 (257,065) Public safety 66,827,017 66,827,017 64,482,767 (2,344,250) Public works 13,444,799 13,444,799 13,320,046 (124,753) Health and human services development 5,322,087 4,322,087 4,781,077 458,990 Recreation and cultural opportunities 11,926,741 11,926,741 11,351,700 (575,041) Housing and economic development 4,488,316 4,488,316 3,062,160 (1,426,156) Total expenditures 121,584,323 120,584,323 116,316,048 (4,268,275) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (9,505,242) (8,505,242) 21,269,647 29,774,889 OTHER FINANCING SOURCES (USES) Transfers in 9,136,606 9,136,606 8,775,706 (360,900) Transfers (out)(175,000) (175,000) (2,592,969) (2,417,969) Total other financing sources (uses)8,961,606 8,961,606 6,182,737 (2,778,869) NET CHANGE IN FUND BALANCE (543,636)$ 456,364$ 27,452,384 26,996,020$ FUND BALANCE, JANUARY 1 33,670,822 FUND BALANCE, DECEMER 31 61,123,206$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 94 - Original Final Budget Budget Actual Variance REVENUES Intergovernmental 21,586,827$ 21,586,827$ 7,659,448$ (13,927,379)$ Investment income - - 524,941 524,941 Total revenues 21,586,827 21,586,827 8,184,389 (13,402,438) EXPENDITURES General management and support 22,250,000 2,250,000 3,180,971 930,971 Public safety - - 344,378 344,378 Capital outlay - - 254,415 254,415 Total expenditures 22,250,000 2,250,000 3,779,764 1,529,764 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (663,173) 19,336,827 4,404,625 (14,932,202) OTHER FINANCING SOURCES (USES) Transfers (out)(8,150,000) (8,150,000) (3,900,000) 4,250,000 Other financing sources (uses) - net (8,150,000) (8,150,000) (3,900,000) 4,250,000 NET CHANGE IN FUND BALANCE (8,813,173)$ 11,186,827$ 504,625 (10,682,202)$ FUND BALANCE, JANUARY 1 26,545 FUND BALANCE, DECEMER 31 531,170$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ARPA FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 95 - MEASUREMENT DATE DECEMBER 31, 2018 2019 2020 2021 2022 TOTAL OPEB LIABILITY Service cost 1,050,028$ 974,443$ 1,249,550$ 1,544,418$ 1,613,298$ Interest 630,168 733,796 593,787 442,412 434,590 Benefit changes - - (53,511) - - Differences between expected and actual experience - - (2,856,275) - (2,081,084) Changes in assumptions (1,272,525) 2,879,775 2,471,462 370,681 (1,428,232) Implicit benefit payments (797,159) (860,932) (925,502) (827,885) (890,214) Other changes - - - - - Net change in total OPEB liability (389,488) 3,727,082 479,511 1,529,626 (2,351,642) Total OPEB liability - beginning 18,717,414 18,327,926 22,055,008 22,534,519 24,064,145 TOTAL OPEB LIABILITY - ENDING 18,327,926$ 22,055,008$ 22,534,519$ 24,064,145$ 21,712,503$ Covered-employee payroll 59,333,084$ 60,964,744$ 59,251,377$ 61,325,175$ 61,334,086$ Employer's total OPEB liability as a percentage of covered-employee payroll 30.89%36.18%38.03%39.24%35.40% No assets accumulate in a trust that meets the criteria in paragraph 4 in GASB Statement No. 75. There was a change in assumptions related to the discount rate in 2022. There was a change in assumptions related to the discount rate in 2021. There was a change in assumptions related to the discount rate in 2019. There was a change in assumptions related to the discount rate and mortality rate assumptions in 2018. The information above is presented for the City and Library in total. There was a change in assumptions related to the mortality rates assumption and discount rate in 2020.There was a change in benefit terms related to the elimination of the excise tax in 2020. 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. CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB LIABILITY AND RELATED RATIOS OTHER POSTEMPLOYMENT BENEFIT PLAN Last Five Fiscal Years (See independent auditor's report.) - 96 - FISCAL YEAR ENDED DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution 3,977,718$ 3,882,629$ 3,695,564$ 3,634,209$ 2,379,845$ 3,235,547$ 3,240,141$ 1,925,332$ Contributions in relation to the actuarially determined contribution 4,018,268 3,963,856 3,702,271 3,634,209 2,379,845 3,235,547 3,240,141 1,925,332 CONTRIBUTION DEFICIENCY (Excess)(40,550)$ (81,227)$ (6,707)$ -$ -$ -$ -$ -$ Percentage contributed 101.02%102.09%100.18%100.00%100.00%100.00%100.00%100.00% Covered payroll 37,703,487$ 37,477,116$ 37,480,368$ 38,519,776$ 38,103,750$ 37,019,990$ 40,098,516$ 41,282,319$ Contributions as a percentage of covered payroll 10.66%10.58%9.88%9.43%6.25%8.74%8.08%4.66% Notes to the Required Supplemental Information 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. CITY OF EVANSTON, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND Last Eight Fiscal Years 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 22 years;the asset valuation method was five-year smoothed fair value;and the significant actuarial assumptions were an investment rate of return at 7.25%annually,projected salary increases assumption of 3.25% to 14.25% annually, and postretirement benefit increases of 3.00% compounded annually. (See independent auditor's report.) - 97 - FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution 8,358,924$ 8,257,475$ 9,380,940$ 10,237,200$ 10,462,704$ 10,502,308$ 11,225,650$ 11,431,461$ 11,194,538$ Contributions in relation to the actuarially determined contribution 8,644,196 8,804,264 9,450,824 10,300,549 10,462,704 10,502,308 11,225,650 11,501,791 11,405,076 CONTRIBUTION DEFICIENCY (Excess)(285,272)$ (546,789)$ (69,884)$ (63,349)$ -$ -$ -$ (70,330)$ (210,538)$ Percentage contributed 103.41%106.62%100.74%100.62%100.00%100.00%100.00%100.62%101.88% Covered payroll 13,537,726$ 14,921,328$ 17,474,672$ 15,352,846$ 15,845,701$ 15,980,131$ 15,368,002$ 15,371,756$ 13,396,912$ Contributions as a percentage of covered payroll 63.85%59.00%54.08%67.09%66.03%65.72%73.05%74.82%85.13% Notes to the Required Supplemental Information 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. CITY OF EVANSTON, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND Last Nine Fiscal Years 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 19 years;the asset valuation method was 5-year smoothed fair value 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. (See independent auditor's report.) - 98 - FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Actuarially determined contribution 6,239,481$ 5,903,483$ 7,350,865$ 8,148,709$ 8,344,947$ 8,266,584$ 9,247,042$ 9,626,778$ 9,528,524$ Contributions in relation to the actuarially determined contribution 6,527,697 6,385,244 7,396,641 8,205,800 8,344,947 8,266,584 9,257,516 9,670,974 9,707,213 CONTRIBUTION DEFICIENCY (Excess)(288,216)$ (481,761)$ (45,776)$ (57,091)$ -$ -$ (10,474)$ (44,196)$ (178,689)$ Percentage contributed 104.62%108.16%100.62%100.70%100.00%100.00%100.11%100.46%101.88% Covered payroll 9,520,925$ 10,396,357$ 10,546,779$ 10,311,920$ 11,618,255$ 10,341,544$ 10,428,768$ 11,012,470$ 11,523,258$ Contributions as a percentage of covered payroll 68.56%61.42%70.13%79.58%71.83%79.94%88.77%87.82%84.24% Notes to the Required Supplemental Information 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. CITY OF EVANSTON, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS' PENSION FUND Last Nine Fiscal Years 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 19 years;the asset valuation method was 5-year smoothed fair value;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. (See independent auditor's report.) - 99 - MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 TOTAL PENSION LIABILITY Service cost 3,898,440$ 3,910,996$ 3,951,687$ 3,970,214$ 3,671,434$ 3,926,313$ 3,850,771$ 3,420,369$ Interest 14,880,724 16,235,086 16,947,408 17,355,320 17,185,510 17,812,836 18,314,051 18,507,004 Changes in benefit terms - - - - - - - - Differences between expected and actual experience 3,043,895 1,465,442 (2,905,680) (2,489,328) 2,992,302 (166,989) (2,056,346) 6,705,189 Changes of assumptions 7,927,038 266,906 (269,039) (7,652,648) 6,567,349 - (1,993,968) - Benefit payments, including refunds of member contributions (11,468,097) (11,928,345) (12,270,564) (12,922,439) (13,674,160) (14,305,617) (14,936,529) (15,539,235) Net change in total pension liability 18,282,000 9,950,085 5,453,812 (1,738,881) 16,742,435 7,266,543 3,177,979 13,093,327 Total pension liability - beginning 202,194,485 220,476,485 230,426,570 235,880,382 234,141,501 250,883,936 258,150,479 261,328,458 PLAN FIDUCIARY NET POSITION 220,476,485$ 230,426,570$ 235,880,382$ 234,141,501$ 250,883,936$ 258,150,479$ 261,328,458$ 274,421,785$ PLAN FIDUCIARY NET POSITION Contributions - employer 3,963,983$ 4,018,268$ 3,963,856$ 3,702,271$ 3,634,209$ 2,379,845$ 3,235,547$ 3,245,589$ Contributions - member 1,710,168 1,767,523 1,705,636 1,693,912 1,847,906 1,845,576 1,684,700 1,806,941 Net investment income 12,425,190 1,062,353 14,441,739 39,438,193 (14,090,715) 43,379,549 37,552,547 49,648,106 Benefit payments, including refunds of member contributions (11,468,097) (11,928,345) (12,270,564) (12,922,439) (13,674,160) (14,305,617) (14,936,529) (15,539,235) Administrative expense 2,322,043 737,427 (142,981) (4,817,948) 3,915,577 647,604 1,390,447 (1,512,861) Net change in plan fiduciary net position 8,953,287 (4,342,774) 7,697,686 27,093,989 (18,367,183) 33,946,957 28,926,712 37,648,540 Plan fiduciary net position - beginning 206,588,617 215,541,904 211,199,130 218,896,816 245,990,805 227,623,622 261,570,579 290,497,291 PLAN FIDUCIARY NET POSITION - ENDING 215,541,904$ 211,199,130$ 218,896,816$ 245,990,805$ 227,623,622$ 261,570,579$ 290,497,291$ 328,145,831$ EMPLOYER'S NET PENSION LIABILITY (ASSET)4,934,581$ 19,227,440$ 16,983,566$ (11,849,304)$ 23,260,314$ (3,420,100)$ (29,168,833)$ (53,724,046)$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS ILLINOIS MUNICIPAL RETIREMENT FUND Last Eight Fiscal Years - 100 - MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 Plan fiduciary net position as a percentage of the total pension liability (asset)97.76%91.66%92.80%105.06%90.73%101.32%111.16%119.58% Covered payroll 35,171,426$ 37,703,487$ 37,477,116$ 37,480,368$ 38,519,776$ 38,103,750$ 37,019,990$ 40,098,516$ Employer's net pension liability as a percentage of covered payroll 14.03%51.00%45.32%(31.61%)60.39%(8.98%)(78.79%)(133.98%) There was a change in assumptions related to the retirement age and mortality rates in 2020. There were changes in assumptions related to the discount rate in 2018. 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.) - 101 - MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL PENSION LIABILITY Service cost 3,439,223$ 3,488,385$ 3,679,212$ 3,993,751$ 4,285,425$ 3,980,758$ 4,018,178$ 3,842,941$ 3,614,698$ Interest 12,284,036 12,663,010 13,192,680 14,088,889 14,433,770 15,128,398 16,138,601 16,648,988 17,149,791 Changes in benefit terms - - - - - 853,365 - - - Differences between expected and actual experience - 3,928,479 (3,214,201) 424,390 3,079,328 4,364,013 2,021,226 3,025,037 2,912,380 Changes of assumptions - 5,791,392 11,039,027 7,096,300 (7,459,427) 4,127,403 - - 4,102,024 Benefit payments, including refunds of member contributions (9,891,045) (10,424,955) (10,970,916) (11,475,943) (11,937,685) (12,522,660) (13,376,879) (14,924,443) (16,243,656) Net change in total pension liability 5,832,214 15,446,311 13,725,802 14,127,387 2,401,411 15,931,277 8,801,126 8,592,523 11,535,237 Total pension liability - beginning 183,492,025 189,324,239 204,770,550 218,496,352 232,623,739 235,025,150 250,956,427 259,757,553 268,350,076 TOTAL PENSION LIABILITY - ENDING 189,324,239$ 204,770,550$ 218,496,352$ 232,623,739$ 235,025,150$ 250,956,427$ 259,757,553$ 268,350,076$ 279,885,313$ PLAN FIDUCIARY NET POSITION Contributions - employer 8,644,196$ 8,804,264$ 9,450,824$ 10,300,549$ 10,462,704$ 10,502,308$ 11,225,650$ 11,501,791$ 11,405,076$ Contributions - member 1,565,053 1,454,720 1,731,740 1,521,467 1,570,309 1,583,631 1,522,969 1,523,341 1,327,634 Net investment income 8,675,133 430,756 7,544,856 15,240,680 (4,911,053) 25,043,593 17,521,008 26,382,486 (28,069,391) Benefit payments, including refunds of member contributions (9,891,045) (10,424,955) (10,970,916) (11,475,943) (11,937,685) (12,522,660) (13,376,879) (14,924,443) (16,243,656) Administrative expense (68,938) (71,408) (123,796) (148,631) (58,885) (52,088) (66,152) (44,442) (44,775) Net change in plan fiduciary net position 8,924,399 193,377 7,632,708 15,438,122 (4,874,610) 24,554,784 16,826,596 24,438,733 (31,625,112) Plan fiduciary net position - beginning 90,763,143 99,687,542 98,558,837 106,191,545 121,629,667 116,755,057 141,309,841 158,136,437 182,575,170 Prior period adjustment - (1,322,082) - - - - - - - Plan fiduciary net position - beginning, restated 90,763,143 98,365,460 98,558,837 106,191,545 121,629,667 116,755,057 141,309,841 158,136,437 182,575,170 PLAN FIDUCIARY NET POSITION - ENDING 99,687,542$ 98,558,837$ 106,191,545$ 121,629,667$ 116,755,057$ 141,309,841$ 158,136,437$ 182,575,170$ 150,950,058$ EMPLOYER'S NET PENSION LIABILITY 89,636,697$ 106,211,713$ 112,304,807$ 110,994,072$ 118,270,093$ 109,646,586$ 101,621,116$ 85,774,906$ 128,935,255$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND Last Nine Fiscal Years - 102 - MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Plan fiduciary net position as a percentage of the total pension liability 52.65%48.13%48.60%52.29%49.68%56.31%60.88%68.04%53.93% Covered payroll 13,537,726$ 14,921,328$ 17,474,672$ 15,352,846$ 15,845,701$ 15,980,131$ 15,368,002$ 15,371,756$ 13,396,912$ Employer's net pension liability as a percentage of covered payroll 662.13%711.81%642.67%722.95%746.39%686.14%661.25%558.00%962.43% For the measurement date December 31, 2022, there were changes in assumptions related to the mortality tables. For the measurement date December 31, 2019, there were no changes in assumptions. There were changes in plan benefits required under PA-101-0610 (SB 1300). 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%. 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.) - 103 - MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL PENSION LIABILITY Service cost 2,326,092$ 2,431,680$ 2,731,257$ 2,813,961$ 3,026,223$ 2,763,258$ 2,948,710$ 2,739,481$ 2,889,155$ Interest 9,391,253 9,656,198 9,922,911 10,507,435 10,741,734 11,061,538 12,013,035 12,303,886 12,731,909 Changes in benefit terms - - - - - 799,936 - - - Differences between expected and actual experience - 1,184,609 (3,239,221) 368,761 384,928 5,218,449 122,642 2,117,644 288,722 Changes of assumptions - 4,239,272 7,971,672 5,192,584 (6,192,362) 4,549,731 - - 6,178,299 Benefit payments, including refunds of member contributions (7,727,683) (8,067,965) (8,343,940) (8,609,369) (9,150,830) (9,624,766) (10,255,160) (10,545,893) (10,905,542) Net change in total pension liability 3,989,662 9,443,794 9,042,679 10,273,372 (1,190,307) 14,768,146 4,829,227 6,615,118 11,182,543 Total pension liability - beginning 140,667,430 144,657,092 154,100,886 163,143,565 173,416,937 172,226,630 186,994,776 191,824,023 198,439,141 TOTAL PENSION LIABILITY - ENDING 144,657,092$ 154,100,886$ 163,143,565$ 173,416,937$ 172,226,630$ 186,994,776$ 191,824,023$ 198,439,141$ 209,621,684$ PLAN FIDUCIARY NET POSITION Contributions - employer 6,527,697$ 6,385,244$ 7,396,641$ 8,205,800$ 8,344,947$ 8,266,584$ 9,257,516$ 9,670,974$ 9,707,213$ Contributions - member 919,874 956,092 997,198 974,992 1,098,506 954,112 986,040 1,041,229 1,089,524 Net investment income 3,549,131 228,236 3,894,765 7,974,296 (3,478,827) 14,527,581 11,387,655 13,515,733 (15,351,364) Benefit payments, including refunds of member contributions (7,727,683) (8,067,965) (8,343,940) (8,609,369) (9,150,830) (9,624,766) (10,255,160) (10,545,893) (10,905,542) Administrative expense (52,248) (44,597) (85,750) (72,640) (105,755) (97,588) (148,979) (123,642) (86,309) Net change in plan fiduciary net position 3,216,771 (542,990) 3,858,914 8,473,079 (3,291,959) 14,025,923 11,227,072 13,558,401 (15,546,478) Plan fiduciary net position - beginning 65,024,941 68,241,712 66,741,084 70,599,998 79,073,077 75,781,118 89,807,041 101,034,113 114,592,514 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 75,781,118 89,807,041 101,034,113 114,592,514 PLAN FIDUCIARY NET POSITION - ENDING 68,241,712$ 66,741,084$ 70,599,998$ 79,073,077$ 75,781,118$ 89,807,041$ 101,034,113$ 114,592,514$ 99,046,036$ EMPLOYER'S NET PENSION LIABILITY 76,415,380$ 87,359,802$ 92,543,567$ 94,343,860$ 96,445,512$ 97,187,735$ 90,789,910$ 83,846,627$ 110,575,648$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION FUND Last Nine Fiscal Years - 104 - MEASUREMENT DATE DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Plan fiduciary net position as a percentage of the total pension liability 47.17%43.31%43.27%45.60%44.00%48.03%52.67%57.75%47.25% Covered payroll 9,520,925$ 10,396,357$ 10,546,779$ 10,311,920$ 11,618,255$ 10,341,544$ 10,428,768$ 11,012,470$ 11,523,258$ Employer's net pension liability as a percentage of covered payroll 802.60%840.29%877.46%914.90%830.12%939.78%870.57%761.38%959.59% For the measurement date December 31, 2022, there were changes in assumptions related to the mortality tables. For the measurement date December 31, 2019, there were no changes in assumptions. There were changes in plan benefits required under PA-101-0610 (SB 1300). 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%. 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. 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%. (See independent auditor's report.) - 105 - FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual money-weighted rate of return, net of investment expense 9.54%1.45%6.90%14.25%(5.20%)21.13%12.88%16.65%(16.78%) 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. CITY OF EVANSTON, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND Last Nine Fiscal Years (See independent auditor's report.) - 106 - FISCAL YEAR ENDED DECEMBER 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual money-weighted rate of return, net of investment expense 5.47%0.36%5.90%11.42%(4.54%)19.62%12.72%13.91%(14.94%) CITY OF EVANSTON, ILLINOIS SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS' PENSION FUND Last Nine Fiscal Years 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.) - 107 - - 63 - CITY OF EVANSTON, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2022 BUDGETARY INFORMATION The City follows these procedure in establishing the budgetary data reflected in the financial statements: 1. 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, 2021. The operating budget includes proposed expenditures and the means of financing them. 2. Public budget hearings are conducted. Taxpayer comments are received and noted. 3. The budget is legally enacted through passage of a resolution . 4. 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. 5. 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. A budget was not adopted for the Neighborhood Improvement Fund. All annual budgets lapse at fiscal year end. 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. During the year, budget amendments were approved by the City Council. The following funds had an excess of actual budgetary expenditures over original and final budget for the fiscal year ended December 31, 2022. Fund Actual Final Budget Variance ARPA $ 3,779,764 $ 2,250,000 $ 1,529,764 - 108 - 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. Crown Capital - To account for capital improvements (primarily alley paving) financed by both special assessments on property owners and city contributions. 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. Variance Original Final Over Budget Budget Actual (Under) REVENUES Taxes Property Current year levy 31,884,164$ 31,884,164$ 32,182,623$ 298,459$ Total property taxes 31,884,164 31,884,164 32,182,623 298,459 Personal property replacement tax 1,205,000 1,205,000 5,516,675 4,311,675 Other taxes State use tax 2,500,000 2,500,000 3,165,654 665,654 Sales tax - home rule 7,500,000 7,500,000 10,455,926 2,955,926 Auto rental tax 50,000 50,000 70,927 20,927 Transportation network provider tax 550,000 550,000 776,296 226,296 Athletic contest tax 500,000 500,000 884,462 384,462 Municipal hotel tax 900,000 900,000 2,166,476 1,266,476 Utility tax 6,100,000 6,100,000 6,878,514 778,514 Cigarette tax 200,000 200,000 216,000 16,000 Evanston motor fuel tax 1,000,000 1,000,000 835,935 (164,065) Liquor tax 2,900,000 2,900,000 3,291,166 391,166 Medical cannabis tax 150,000 150,000 - (150,000) Recreational cannabis tax - - 361,649 361,649 Parking tax 2,600,000 2,600,000 2,952,826 352,826 Amusement tax 520,000 520,000 942,170 422,170 Foreign fire tax - - 267,765 267,765 Real estate transfer tax 3,250,000 3,250,000 5,496,306 2,246,306 Total other taxes 28,720,000 28,720,000 38,762,072 10,042,072 Total taxes 61,809,164 61,809,164 76,461,370 14,652,206 Licenses and permits Vehicle licenses 2,900,000 2,900,000 2,804,272 (95,728) Business licenses 35,000 35,000 46,893 11,893 Sealant office visits - - 31 31 Bed and breakfast licenses 150 150 - (150) Collection box license 2,500 2,500 3,100 600 Pet licenses 10,000 10,000 14,284 4,284 Contractor licenses 170,000 170,000 174,275 4,275 Rooming house licenses - - 2,300 2,300 Liquor licenses 525,000 525,000 645,106 120,106 One-day liquor licenses 12,000 12,000 17,279 5,279 Farmer's market licenses 51,250 51,250 51,733 483 Rental building registration 360,000 360,000 299,430 (60,570) Other licenses 20,000 20,000 - (20,000) Long-term care license 120,000 120,000 102,700 (17,300) Seasonal foot ESTB 15,000 15,000 9,200 (5,800) Mobile food vehicle license 1,450 1,450 - (1,450) Hen coop license 800 800 - (800) Resident care home license 1,200 1,200 300 (900) Building permits 4,225,100 4,225,100 7,000,238 2,775,138 Elevator permits 42,000 42,000 33,782 (8,218) CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2022 (This schedule is continued on the following pages.) - 109 - Variance Original Final Over Budget Budget Actual (Under) REVENUES (Continued) Licenses and permits (Continued) Right of way permits 358,000$ 358,000$ 36,796$ (321,204)$ Residents parking permit 228,000 228,000 1,220 (226,780) Visitor parking permit 13,000 13,000 76 (12,924) Fire suppression/alarm permit 100,000 100,000 10,599 (89,401) Oversize truck permit 20,000 20,000 26,375 6,375 Moving van permit 57,000 57,000 63,125 6,125 Plat PR and sign application fee 2,100 2,100 - (2,100) IL Bell franchise fee - - 106,744 106,744 Alarm panel franchise fee 4,000 4,000 - (4,000) Northwestern University easement 47,000 47,000 - (47,000) Easements - - 47,000 47,000 Cable franchise fee 950,000 950,000 890,517 (59,483) PEG fees - Comcast 145,000 145,000 116,236 (28,764) Nicor franchise fee 75,000 75,000 58,454 (16,546) Permit penalty fees 8,000 8,000 - (8,000) Total licenses and permits 10,498,550 10,498,550 12,562,065 2,063,515 Intergovernmental - revenue from other agencies Retailer and service occupation tax 10,300,000 10,300,000 12,987,309 2,687,309 State income tax 8,800,000 8,800,000 12,826,057 4,026,057 State highway maintenance 83,000 83,000 94,402 11,402 Health Department Basic Service Grant 124,183 124,183 150,424 26,241 Illinois tobacco free community 25,000 25,000 23,427 (1,573) IL HIV Surveillance Grant 34,150 34,150 15,359 (18,791) NEA Grant - - 155,000 155,000 Aspire Program Grant - - 425,120 425,120 Other State/County Grant 21,400 21,400 289,507 268,107 Fire Department training 6,000 6,000 - (6,000) CRI Grant 43,541 43,541 46,273 2,732 PEHP Grant 63,701 63,701 64,434 733 Lead Paid Hazard Grant 39,600 39,600 - (39,600) Federal Grant/Aid 281,000 281,000 310,617 29,617 Commission on Aging Grant - Advocate 64,000 64,000 128,010 64,010 Vacant Property Grant 37,500 37,500 3,710 (33,790) Market link vouchers 30,000 30,000 - (30,000) Civil Defense Grants (F.E.M.A.)- - 147,939 147,939 Narcotics enforcement revenue 40,000 40,000 72,750 32,750 Police training 5,000 5,000 - (5,000) eShare revenue - - 122,360 122,360 Police DUI reimbursement 15,000 15,000 - (15,000) You Streets Grant - - 55,000 55,000 Beach Grant 15,097 15,097 - (15,097) COVID-19 Mass Vaccination Grant - - 293,500 293,500 ARPA 4,250,000 4,250,000 - (4,250,000) Cook County WNV Grant 14,270 14,270 14,270 - Total intergovernmental - revenue from other agencies 24,292,442 24,292,442 28,225,468 3,933,026 GENERAL FUND For the Fiscal Year Ended December 31, 2022 CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) (This schedule is continued on the following pages.) - 110 - Variance Original Final Over Budget Budget Actual (Under) GENERAL FUND For the Fiscal Year Ended December 31, 2022 CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) REVENUES (Continued) Charges for services Recreation Recreation - program 5,175,525$ 5,175,525$ 6,883,690$ 1,708,165$ Recreation - other - - 1,448 1,448 Recreation - charges 3,000 3,000 12 (2,988) Recreation - special events 12,500 12,500 21,086 8,586 Total recreation 5,191,025 5,191,025 6,906,236 1,715,211 Other charges for services Health clinic fees - food establishment 230,000 230,000 270,857 40,857 Homeless health clinic - - - - Infrastructure maintenance fees 485,000 485,000 - (485,000) Temporary license fee 11,000 11,000 2,553 (8,447) Food delivery vehicle 6,500 6,500 3,050 (3,450) Beverage snack vending machine 41,000 41,000 44,780 3,780 Tobacco license 17,000 17,000 21,500 4,500 Beekeeper license 300 300 1,620 1,320 Funeral director license 6,000 6,000 - (6,000) Temp funeral director licenses 4,000 4,000 - (4,000) Birth/death certificates 80,000 80,000 95,514 15,514 Parking enforcement reimbursement - 57,000 41,099 (15,901) Property clean up 10,000 10,000 - (10,000) Senior Taxi coupon sales 85,000 85,000 53,547 (31,453) Fire cost recovery charge 1,000 1,000 - (1,000) Historic preservation 30,000 30,000 14,270 (15,730) Tree preservation revenue 5,000 5,000 12,843 7,843 Ambulance service 2,550,000 2,550,000 5,937,543 3,387,543 Police CTA detail 300,000 300,000 216,674 (83,326) Police report fees 25,000 25,000 22,115 (2,885) Zoning fees 50,000 50,000 25,885 (24,115) Fire building inspections 25,000 25,000 - (25,000) Fire report fee 100 100 - (100) Aging Well conference 2,000 2,000 - (2,000) Alarm panel subscription fees 115,000 115,000 275,741 160,741 Background check daycare providers 400 400 - (400) New pavement degradation 80,000 80,000 - (80,000) I Heart Evanston Trees project 3,000 3,000 6 (2,994) Plan review 5,000 5,000 - (5,000) Total other service charges 4,167,300 4,224,300 7,039,597 2,815,297 Total charges for services 9,358,325 9,415,325 13,945,833 4,530,508 Fines Ticket fines - parking 2,800,000 2,800,000 3,581,580 781,580 Regular fines 115,000 115,000 116,259 1,259 Animal ordinance penalties 7,500 7,500 - (7,500) Boot release fee 90,000 90,000 40,185 (49,815) Fire false alarm fines 115,000 115,000 60 (114,940) (This schedule is continued on the following page.) - 111 - Variance Original Final Over Budget Budget Actual (Under) GENERAL FUND For the Fiscal Year Ended December 31, 2022 CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) REVENUES (Continued) Fines (Continued) Housing code violation fines 40,000$ 40,000$ -$ (40,000)$ Health code violation fees 3,000 3,000 - (3,000) Administrative adjudication fee 225,000 225,000 51,962 (173,038) Total fines 3,395,500 3,395,500 3,790,046 394,546 Investment income 55,000 55,000 309,972 254,972 Other revenues Police equipment reimbursement 20,000 20,000 4,923 (15,077) Rethink your drink 5,000 5,000 - (5,000) Holiday food drive 10,000 10,000 11,947 1,947 We're Out Walking 6,000 6,000 - (6,000) Property sales and rentals 51,100 51,100 104,795 53,695 Donation 13,900 13,900 122,667 108,767 Miscellaneous revenue 179,100 122,100 782,108 660,008 Sale of other assets 1,500 1,500 1,576 76 Reimbursements - serve and protect 42,000 42,000 8,257 (33,743) Reimbursements - salt use 45,000 45,000 36,157 (8,843) Reimbursements - fire department 105,000 105,000 - (105,000) Reimbursements - police 640,000 640,000 489,162 (150,838) Community relief program - - - - Payment in lieu of taxes 200,000 200,000 65,000 (135,000) Fund balance applied 1,000,000 1,000,000 - (1,000,000) Chargeback revenue 300,000 300,000 618,195 318,195 Insurance proceeds - - 9,769 9,769 Private Elm Trees Insurance 30,000 30,000 21,160 (8,840) Citizens CPR class fees 6,500 6,500 13,515 7,015 Surface lot permits - - (90) (90) Commercial drive permits - - 1,800 1,800 Parking permits - Ryan Field 15,000 15,000 - (15,000) Total other revenues 2,670,100 2,613,100 2,290,941 (322,159) TOTAL REVENUES 112,079,081$ 112,079,081$ 137,585,695$ 25,506,614$ (See independent auditor's report.) - 112 - Variance Original Final Over Budget Budget Actual (Under) EXPENDITURES General management and support City Council 579,384$ 579,384$ 647,845$ 68,461$ City Manager and Budget Management 6,232,882 6,232,882 5,733,973 (498,909) City Clerk 343,573 343,573 308,725 (34,848) Law Department 970,341 970,341 848,616 (121,725) Administrative services 11,449,183 11,449,183 11,779,139 329,956 Total general management and support 19,575,363 19,575,363 19,318,298 (257,065) Public safety Police 50,003,660 50,003,660 47,578,172 (2,425,488) Fire 16,823,357 16,823,357 16,904,595 81,238 Total public safety 66,827,017 66,827,017 64,482,767 (2,344,250) Public works Public Works Director 3,347,448 3,347,448 3,352,064 4,616 Municipal Service Center 2,016,903 2,016,903 2,862,998 846,095 City Engineer 377,227 377,227 381,314 4,087 Traffic Engineer 3,754,680 3,754,680 3,221,221 (533,459) Streets 3,801,781 3,801,781 3,375,765 (426,016) Sanitation 146,760 146,760 126,684 (20,076) Total public works 13,444,799 13,444,799 13,320,046 (124,753) Health and Human Services Development COVID contact tracing - - 349,656 349,656 Health and Human Services Director 343,671 343,671 247,397 (96,274) Health Department 1,110,080 1,110,080 1,112,889 2,809 Mental health and community purchased services - - 13,459 13,459 Human relations 3,868,336 2,868,336 3,057,676 189,340 Total Health and Human Services Development 5,322,087 4,322,087 4,781,077 458,990 Recreation and cultural opportunities Recreation 10,690,828 10,690,828 10,335,624 (355,204) Ecology Center 603,474 603,474 464,447 (139,027) Cultural Arts 632,439 632,439 551,629 (80,810) Total recreation and cultural opportunities 11,926,741 11,926,741 11,351,700 (575,041) Housing and Economic Development Community development administration 1,073,810 1,073,810 375,838 (697,972) Planning and zoning 1,259,537 1,259,537 842,953 (416,584) Housing rehabilitation and property standards 713,020 713,020 645,446 (67,574) Building code compliance 1,441,949 1,441,949 1,197,923 (244,026) Total housing and economic development 4,488,316 4,488,316 3,062,160 (1,426,156) TOTAL EXPENDITURES 121,584,323$ 120,584,323$ 116,316,048$ (4,268,275)$ CITY OF EVANSTON, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For the Year Ended December 31, 2022 (See independent auditor's report.) - 113 - Original Final Budget Budget Actual Variance Taxes Property taxes Current year levy, net 13,436,256$ 13,436,256$ 13,858,421$ 422,165$ Investment income 1,500 1,500 91,189 89,689 Total revenues 13,437,756 13,437,756 13,949,610 511,854 General management and support - - 19 19 Debt Service Principal 10,086,859 10,086,859 10,054,059 (32,800) Interest 5,603,216 5,603,216 5,642,685 39,469 Fiscal agent fees - 13,338 6,650 (6,688) Total expenditures 15,690,075 15,703,413 15,703,413 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,252,319) (2,265,657) (1,753,803) 511,854 Transfers in 2,267,041 2,267,041 2,267,041 - Total other financing sources (uses)2,267,041 2,267,041 2,267,041 - NET CHANGE IN FUND BALANCE 14,722$ 1,384$ 513,238 511,854$ FUND BALANCE, JANUARY 1 1,452,572 FUND BALANCE, DECEMBER 31 1,965,810$ REVENUES EXPENDITURES OTHER FINANCING SOURCES (USES) CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL OBLIGATION DEBT FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 114 - 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. 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. Reparations – to account for the municipal tax revenues (at 3% of retail price) collected from the sales of recreational cannabis 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. 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. Emergency Motor Fuel Telephone Neighborhood Affordable Tax System Improvement Housing HOME Cash and equivalents -$ 1,123,671$ 22,255$ 2,713,841$ 33,294$ Investments 5,343,927 - - - - Receivables Property tax - - - - - Loans - - - 2,531,277 5,300,354 Special assessments - - - - - Leases - - - - - Accrued interest - - - - - Other - - - - - Due from other governments 304,867 367,002 - 35,353 15,336 Due from other funds - 120,526 40 42,236 1,575 TOTAL ASSETS 5,648,794$ 1,611,199$ 22,295$ 5,322,707$ 5,350,559$ LIABILITIES Vouchers payable 190,828$ 126,831$ -$ 40,833$ 43,353$ Unearned revenue - - - - - Due to other governments - - - 148,234 - Due to other funds - - - - - Total liabilities 190,828 126,831 - 189,067 43,353 DEFERRED INFLOWS OF RESOURCES Long-term notes receivable - - - 2,531,277 5,300,354 Unavailable revenue - property taxes - - - - - Leases - - - - - Total deferred inflows of resources - - - 2,531,277 5,300,354 Total liabilities and deferred inflows of resources 190,828 126,831 - 2,720,344 5,343,707 FUND BALANCES Restricted for Highway maintenance 5,457,966 - - - - Emergency telephone system - 1,484,368 - - - HUD approved projects - - - - 6,852 Neighborhood improvements - - 22,295 2,602,363 - Reparations - - - - - Sustainability - - - - - Debt service - - - - - General assistance - - - - - Capital improvements - - - - - Assigned - - - - - Unassigned (deficit)- - - - - Total fund balances (deficit)5,457,966 1,484,368 22,295 2,602,363 6,852 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 5,648,794$ 1,611,199$ 22,295$ 5,322,707$ 5,350,559$ CITY OF EVANSTON, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2022 OF RESOURCES, AND FUND BALANCES ASSETS Special Revenue LIABILITIES, DEFERRED INFLOWS - 115 - Special Community Community Service Total Development Development District Good General Special Block Grant Loan No. 9 Reparations Sustainabiility Neighbor Assistance Revenue -$ 328,933$ 18,850$ 251,978$ 376,538$ 732,512$ 715,781$ 6,317,653$ - - - - - - 5,343,927 - - 652,479 - - - 1,565,401 2,217,880 - 1,956,042 - - - - - 9,787,673 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 413,417 - - - - - - 1,135,975 - 55,274 - 3,685 39,425 901 5,205 268,867 413,417$ 2,340,249$ 671,329$ 255,663$ 415,963$ 733,413$ 2,286,387$ 25,071,975$ 41,261$ 16$ 276,316$ 7,127$ 31,371$ -$ -$ 757,936$ - - - - - - - - - 4,942 - - - - - 153,176 312,833 - - - - - - 312,833 354,094 4,958 276,316 7,127 31,371 - - 1,223,945 - 1,956,042 - - - - - 9,787,673 - - 595,000 - - - 1,300,001 1,895,001 - - - - - - - - - 1,956,042 595,000 - - - 1,300,001 11,682,674 354,094 1,961,000 871,316 7,127 31,371 - 1,300,001 12,906,619 - - - - - - - 5,457,966 - - - - - - - 1,484,368 59,323 379,249 - - - - - 445,424 - - - - - - - 2,624,658 - - - 248,536 - - - 248,536 - - - - 384,592 - - 384,592 - - - - - - - - - - - - - - 986,386 986,386 - - - - - 733,413 - 733,413 - - - - - - - - - - (199,987) - - - - (199,987) 59,323 379,249 (199,987) 248,536 384,592 733,413 986,386 12,165,356 413,417$ 2,340,249$ 671,329$ 255,663$ 415,963$ 733,413$ 2,286,387$ 25,071,975$ Special Revenue (This schedule is continued on the following pages.) - 116 - Chicago Main Special Special Special Dempster-Dodge Tax Service Service Service Tax Increment Area Area Area Increment District No. 6 No. 7 No. 8 District Cash and equivalents 1,323,108$ 192,858$ 66,160$ 23,282$ 374,766$ Investments - - - - - Receivables Property tax 376,653 254,136 171,048 72,067 18 Loans - - - - - Special assessments - - - - - Leases - - - - - Accrued interest - - - - - Other - - - - - Due from other governments - - - - - Due from other funds 4,609 424 47 24 1,201 TOTAL ASSETS 1,704,370$ 447,418$ 237,255$ 95,373$ 375,985$ LIABILITIES Vouchers payable 10,692$ 221,862$ 70,019$ 30,644$ 2,973$ Unearned revenue - - - - - Due to other governments - - - - - Due to other funds - - - - - Total liabilities 10,692 221,862 70,019 30,644 2,973 DEFERRED INFLOWS OF RESOURCES Long-term notes receivable - - - - - Unavailable revenue - property taxes - 221,001 154,800 60,200 - Leases - - - - - Total deferred inflows of resources - 221,001 154,800 60,200 - Total liabilities and deferred inflows of resources 10,692 442,863 224,819 90,844 2,973 FUND BALANCES Restricted for Highway maintenance - - - - - Emergency telephone system - - - - - HUD approved projects - - - - - Neighborhood improvements - 4,555 12,436 4,529 - Reparations - - - - - Sustainability - - - - - Debt service 1,693,678 - - - 373,012 General assistance - - - - - Capital improvements - - - - - Assigned - - - - - Unassigned (deficit)- - - - - Total fund balances (deficit)1,693,678 4,555 12,436 4,529 373,012 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 1,704,370$ 447,418$ 237,255$ 95,373$ 375,985$ ASSETS CITY OF EVANSTON, ILLINOIS COMBINING BALANCE SHEET (Continued) NONMAJOR GOVERNMENTAL FUNDS December 31, 2022 OF RESOURCES, AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS Debt Service - 117 - Howard Ridge West Evanston Five-Fifths Total Tax Tax Tax Total Total Nonmajor Increment Increment Increment Debt Capital Crown Crown Special Capital Governmental District District District Service Improvements Construction Maintenance Assessment Projects Funds 1,739,373$ 2,290,642$ -$ 6,010,189$ 4,537,297$ 5,300,016$ 490,045$ 1,505,447$ 11,832,805$ 24,160,647$ - - - - 4,342,441 - - - 4,342,441 9,686,368 457,364 351,528 - 1,682,814 - - - - - 3,900,694 - - - - - - - - - 9,787,673 - - - - - - - 661,093 661,093 661,093 439,826 - - 439,826 - - - - - 439,826 253 - - 253 - - - - - 253 - - - - - - - - - - - - - - - - - - - 1,135,975 8,920 8,136 - 23,361 - 18,115 - 31,074 49,189 341,417 2,645,736$ 2,650,306$ -$ 8,156,443$ 8,879,738$ 5,318,131$ 490,045$ 2,197,614$ 16,885,528$ 50,113,946$ 109,309$ 186,309$ 100,993$ 732,801$ 6,742,029$ 12,800$ -$ 93,669$ 6,848,498$ 8,339,235$ - - - - - - - - - - - - - - - - - - - 153,176 - - 34,908 34,908 170,817 - - - 170,817 518,558 109,309 186,309 135,901 767,709 6,912,846 12,800 - 93,669 7,019,315 9,010,969 - - - - - - - 661,093 661,093 10,448,766 - - - 436,001 - - - - - 2,331,002 431,333 - - 431,333 - - - - - 431,333 431,333 - - 867,334 - - - 661,093 661,093 13,211,101 540,642 186,309 135,901 1,635,043 6,912,846 12,800 - 754,762 7,680,408 22,222,070 - - - - - - - - - 5,457,966 - - - - - - - - - 1,484,368 - - - - - - - - - 445,424 - - - 21,520 - - - 1,442,852 1,442,852 4,089,030 - - - - - - - - - 248,536 - - - - - - - - - 384,592 2,105,094 2,463,997 - 6,635,781 - - - - - 6,635,781 - - - - - - - - - 986,386 - - - - - - - - - 733,413 - - - - 1,966,892 5,305,331 490,045 - 7,762,268 7,762,268 - - (135,901) (135,901) - - - - - (335,888) 2,105,094 2,463,997 (135,901) 6,521,400 1,966,892 5,305,331 490,045 1,442,852 9,205,120 27,891,876 2,645,736$ 2,650,306$ -$ 8,156,443$ 8,879,738$ 5,318,131$ 490,045$ 2,197,614$ 16,885,528$ 50,113,946$ Capital ProjectsDebt Service (See independent auditor's report.) - 118 - Emergency Motor Fuel Telephone Neighborhood Affordable Tax System Improvement Housing HOME REVENUES Taxes -$ 1,591,465$ -$ 169,260$ -$ Special assessments - - - - - Intergovernmental 4,686,682 - - 335,858 308,371 Fees - - - - - Charges for services - - - - - Investment income 92,024 8,339 152 35,081 996 Miscellaneous Contributions - - - 125,000 - Other - - - 5,000 32,162 Total revenues 4,778,706 1,599,804 152 670,199 341,529 EXPENDITURES Current General management and support - - - - - Public safety - 1,559,923 - - - Public works 3,356,576 - - - - Housing and economic development - - - 540,780 360,412 Capital outlay - - - - - Total expenditures 3,356,576 1,559,923 - 540,780 360,412 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,422,130 39,881 152 129,419 (18,883) OTHER FINANCING SOURCES (USES) Transfers in - - - - - Transfers (out)(1,044,987) (90,000) - - - Total other financing sources (uses)(1,044,987) (90,000) - - - NET CHANGE IN FUND BALANCES 377,143 (50,119) 152 129,419 (18,883) FUND BALANCES (DEFICIT), JANUARY 1 5,080,823 1,534,487 22,143 2,472,944 25,735 FUND BALANCES (DEFICIT), DECEMBER 31 5,457,966$ 1,484,368$ 22,295$ 2,602,363$ 6,852$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2022 Special Revenue - 119 - Special Community Community Service Total Development Development District Good General Special Block Grant Loan No. 9 Reparations Sustainability Neighbor Assistance Revenue -$ -$ 600,545$ -$ -$ -$ 1,340,034$ 3,701,304$ - - - - - - - - 2,328,668 - - - - - - 7,659,579 - - - - 504,991 - - 504,991 - - - - - - - - 2,103 - 74 5,095 - 5,805 12,266 161,935 - - - 10,225 - - - 135,225 - 85,957 - - - - 27,828 150,947 2,330,771 85,957 600,619 15,320 504,991 5,805 1,380,128 12,313,981 - - - 272,499 238,368 50,325 1,004,058 1,565,250 - - - - - - - 1,559,923 - - - - - - - 3,356,576 2,332,271 17,638 593,856 - - - - 3,844,957 - - - - - 124,230 - 124,230 2,332,271 17,638 593,856 272,499 238,368 174,555 1,004,058 10,450,936 (1,500) 68,319 6,763 (257,179) 266,623 (168,750) 376,070 1,863,045 - - - - 117,969 - - 117,969 - - - - - - - (1,134,987) - - - - 117,969 - - (1,017,018) (1,500) 68,319 6,763 (257,179) 384,592 (168,750) 376,070 846,027 60,823 310,930 (206,750) 505,715 - 902,163 610,316 11,319,329 59,323$ 379,249$ (199,987)$ 248,536$ 384,592$ 733,413$ 986,386$ 12,165,356$ Special Revenue (This schedule in continued on the following pages.) - 120 - Chicago Main Special Special Special Dempster-Dodge Tax Service Service Service Tax Increment Area Area Area Increment District No. 6 No. 7 No. 8 District REVENUES Taxes 1,139,750$ 222,830$ 150,456$ 62,376$ 224,028$ Special assessments - - - - - Intergovernmental - - - - - Fees - - - - - Charges for services - - - - - Investment income 20,930 1,808 359 97 5,772 Miscellaneous Contributions - - - - - Other - - - - - Total revenues 1,160,680 224,638 150,815 62,473 229,800 EXPENDITURES Current General management and support - - - - - Public safety - - - - - Public works - - - - - Housing and economic development 153,766 221,862 147,094 61,162 9,959 Capital outlay - - - - - Total expenditures 153,766 221,862 147,094 61,162 9,959 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,006,914 2,776 3,721 1,311 219,841 OTHER FINANCING SOURCES (USES) Transfers in - - - - - Transfers (out)(264,763) - - - (171,833) Total other financing sources (uses)(264,763) - - - (171,833) NET CHANGE IN FUND BALANCES 742,151 2,776 3,721 1,311 48,008 FUND BALANCES (DEFICIT), JANUARY 1 951,527 1,779 8,715 3,218 325,004 FUND BALANCES (DEFICIT), DECEMBER 31 1,693,678$ 4,555$ 12,436$ 4,529$ 373,012$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued) NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2022 Debt Service - 121 - Howard Ridge West Evanston Five-Fifths Total Tax Tax Tax Total Total Nonmajor Increment Increment Increment Debt Capital Crown Crown Special Capital Governmental District District District Service Improvements Construction Maintenance Assessment Projects Funds 1,198,459$ 1,518,582$ -$ 4,516,481$ -$ -$ -$ -$ -$ 8,217,785$ - - - - - - - 318,463 318,463 318,463 - - - - 211,608 - - - 211,608 7,871,187 - - - - 33,442 - - - 33,442 538,433 - - - - 63,467 - - - 63,467 63,467 46,043 50,722 - 125,731 1,000 92,567 - 27,115 120,682 408,348 - - - - 808,249 600,000 - - 1,408,249 1,543,474 76,588 - - 76,588 747,806 - - - 747,806 975,341 1,321,090 1,569,304 - 4,718,800 1,865,572 692,567 - 345,578 2,903,717 19,936,498 - - - - 638 - - 60 698 1,565,948 - - - - - - - - - 1,559,923 - - - - 6,936,663 49,722 - - 6,986,385 10,342,961 1,491,447 2,303,521 135,901 4,524,712 - - - - - 8,369,669 - - - - 5,523,387 167,332 34,951 571,324 6,296,994 6,421,224 1,491,447 2,303,521 135,901 4,524,712 12,460,688 217,054 34,951 571,384 13,284,077 28,259,725 (170,357) (734,217) (135,901) 194,088 (10,595,116) 475,513 (34,951) (225,806) (10,380,360) (8,323,227) - - - - 956,470 - 175,000 - 1,131,470 1,249,439 (398,113) (75,000) - (909,709) - (900,000) - (464,938) (1,364,938) (3,409,634) (398,113) (75,000) - (909,709) 956,470 (900,000) 175,000 (464,938) (233,468) (2,160,195) (568,470) (809,217) (135,901) (715,621) (9,638,646) (424,487) 140,049 (690,744) (10,613,828) (10,483,422) 2,673,564 3,273,214 - 7,237,021 11,605,538 5,729,818 349,996 2,133,596 19,818,948 38,375,298 2,105,094$ 2,463,997$ (135,901)$ 6,521,400$ 1,966,892$ 5,305,331$ 490,045$ 1,442,852$ 9,205,120$ 27,891,876$ Capital ProjectsDebt Service (See independent auditor's report.) - 122 - Original and Final Budget Actual Variance REVENUES Intergovernmental allotments 3,656,700$ 4,686,682$ 1,029,982$ Interest 12,000 92,024 80,024 Total revenues 3,668,700 4,778,706 1,110,006 EXPENDITURES Public works 4,299,000 3,356,576 (942,424) Total expenditures 4,299,000 3,356,576 (942,424) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (630,300) 1,422,130 2,052,430 OTHER FINANCING SOURCES (USES) Transfers (out)(1,044,987) (1,044,987) - Total other financing sources (uses)(1,044,987) (1,044,987) - NET CHANGE IN FUND BALANCE (1,675,287)$ 377,143 2,052,430$ FUND BALANCE, JANUARY 1 5,080,823 FUND BALANCE, DECEMBER 31 5,457,966$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 123 - Original and Final Budget Actual Variance REVENUES Taxes and special assessments 1,400,000$ 1,591,465$ 191,465$ Interest 7,000 8,339 1,339 Total revenues 1,407,000 1,599,804 192,804 EXPENDITURES Public safety 1,630,546 1,559,923 (70,623) Total expenditures 1,630,546 1,559,923 (70,623) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (223,546) 39,881 263,427 OTHER FINANCING SOURCES (USES) Transfers (out)(90,000) (90,000) - NET CHANGE IN FUND BALANCE (313,546)$ (50,119) 263,427$ FUND BALANCE, JANUARY 1 1,534,487 FUND BALANCE, DECEMBER 31 1,484,368$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EMERGENCY TELEPHONE SYSTEM FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 124 - Original Final Budget Budget Actual Variance REVENUES Affordable housing demo tax 75,000$ 75,000$ 169,260$ 94,260$ Intergovernmental 658,000 658,000 335,858 (322,142) Developer contributions 125,000 125,000 125,000 - Interest 5,700 5,700 35,081 29,381 Miscellaneous 15,600 15,600 5,000 (10,600) Total revenues 879,300 879,300 670,199 (209,101) EXPENDITURES Housing and economic development 2,505,625 1,505,625 540,780 (964,845) Total expenditures 2,505,625 1,505,625 540,780 (964,845) NET CHANGE IN FUND BALANCE (1,626,325)$ (626,325)$ 129,419 755,744$ FUND BALANCE, JANUARY 1 2,472,944 FUND BALANCE, DECEMBER 31 2,602,363$ AFFORDABLE HOUSING FUND For the Year Ended December 31, 2022 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CITY OF EVANSTON, ILLINOIS (See independent auditor's report.) - 125 - Original and Final Budget Actual Variance REVENUES Intergovernmental allotments 540,453$ 308,371$ (232,082)$ Interest 150 996 846 Miscellaneous 25,000 32,162 7,162 Total revenues 565,603 341,529 (224,074) EXPENDITURES Housing and economic development 571,746 360,412 (211,334) Total expenditures 571,746 360,412 (211,334) NET CHANGE IN FUND BALANCE (6,143)$ (18,883) (12,740)$ FUND BALANCE, JANUARY 1 25,735 FUND BALANCE, DECEMBER 31 6,852$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOME FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 126 - Original and Final Budget Actual Variance REVENUES Intergovernmental allotments Grant from U.S. Department of Housing and Urban Development 3,684,820$ 2,328,668$ (1,356,152)$ Investment income - 2,103 2,103 Total revenues 3,684,820 2,330,771 (1,354,049) EXPENDITURES Housing and economic development 3,685,622 2,332,271 (1,353,351) Total expenditures 3,685,622 2,332,271 (1,353,351) NET CHANGE IN FUND BALANCE (802)$ (1,500) (698)$ FUND BALANCE, JANUARY 1 60,823 FUND BALANCE, DECEMBER 31 59,323$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 127 - Original and Final Budget Actual Variance Administration/Planning CDBG administration 3,554,146$ 355,008$ (3,199,138)$ Salaries - 508 508 Total administration/planning 3,554,146 355,516 (3,198,630) Housing Rehab construction administration 56,476 55,855 (621) Targeted housing code enforcement - 378,449 378,449 Total housing 56,476 434,304 377,828 Neighborhood Revitalization Alley paving program - 409,150 409,150 Curbs/sidewalk replacement - 286,995 286,995 Twiggs park - 9,111 9,111 Contributions to other agencies - 29,035 29,035 Total neighborhood revitalization - 734,291 734,291 Public Services Connection for Homeless - 257,030 257,030 Summer youth employment - 235,870 235,870 Childcare Network Evanston - 35,000 35,000 James Moran Center - 75,000 75,000 YWCA Domestic Violence - 35,000 35,000 Interfaith Housing Program - Homeshare - 20,000 20,000 Family Focus - 65,260 65,260 Books and Breakfast - 20,000 20,000 Connections for Homeless - 50,000 50,000 Direct financial assistance to businesses 75,000 15,000 (60,000) Total public services 75,000 808,160 733,160 TOTAL EXPENDITURES 3,685,622$ 2,332,271$ (1,353,351)$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 128 - Original and Final Budget Actual Variance REVENUES Miscellaneous 100,000$ 85,957$ (14,043)$ Total revenues 100,000 85,957 (14,043) EXPENDITURES Housing and economic development 175,000 17,638 (157,362) Total expenditures 175,000 17,638 (157,362) NET CHANGE IN FUND BALANCE (75,000)$ 68,319 143,319$ FUND BALANCE, JANUARY 1 310,930 FUND BALANCE, DECEMBER 31 379,249$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT LOAN FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 129 - Original Final Budget Budget Actual Variance REVENUES Property taxes Current year 595,000$ 595,000$ 600,545$ 5,545$ Investment income - - 74 74 Total revenues 595,000 595,000 600,619 5,619 EXPENDITURES Housing and economic development 575,000 593,856 593,856 - Total expenditures 575,000 593,856 593,856 - NET CHANGE IN FUND BALANCE 20,000$ 1,144$ 6,763 5,619$ FUND BALANCE (DEFICIT), JANUARY 1 (206,750) FUND BALANCE (DEFICIT), DECEMBER 31 (199,987)$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL SERVICE DISTRICT NO. 9 FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 130 - Original and Final Budget Actual Variance REVENUES Taxes 400,000$ -$ (400,000)$ Miscellaneous Contributions - 10,225 10,225 Investment income - 5,095 5,095 Total revenues 400,000 15,320 (384,680) EXPENDITURES General management and support 400,000 272,499 (127,501) Total expenditures 400,000 272,499 (127,501) NET CHANGE IN FUND BALANCE -$ (257,179) (257,179)$ FUND BALANCE, JANUARY 1 505,715 FUND BALANCE, DECEMBER 31 248,536$ SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CITY OF EVANSTON, ILLINOIS For the Year Ended December 31, 2022 REPARATIONS FUND (See independent auditor's report.) - 131 - Original Final Budget Budget Actual Variance REVENUES Fees -$ -$ 504,991$ 504,991$ Total revenues - - 504,991 504,991 EXPENDITURES General management and support - 238,368 238,368 - Total expenditures - 238,368 238,368 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - (238,368) 266,623 504,991 OTHER FINANCING SOURCES (USES) Transfers in - - 117,969 117,969 NET CHANGE IN FUND BALANCE -$ (238,368)$ 384,592 622,960$ FUND BALANCE, JANUARY 1 - FUND BALANCE, DECEMBER 31 384,592$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SUSTAINABILITY FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 132 - Original and Final Budget Actual Variance REVENUES Investment income -$ 5,805$ 5,805$ Total revenues - 5,805 5,805 EXPENDITURES General management and support 1,000,000 50,325 (949,675) Capital outlay - 124,230 124,230 Total expenditures 1,000,000 174,555 (825,445) NET CHANGE IN FUND BALANCE (1,000,000)$ (168,750) 831,250$ FUND BALANCE, JANUARY 1 902,163 FUND BALANCE, DECEMBER 31 733,413$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GOOD NEIGHBOR FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 133 - Original and Final Budget Actual Variance REVENUES Property taxes 1,300,000$ 1,340,034$ 40,034$ Investment income 1,000 12,266 11,266 Miscellaneous 27,500 27,828 328 Total revenues 1,328,500 1,380,128 51,628 EXPENDITURES General management and support 1,341,353 1,004,058 (337,295) Total expenditures 1,341,353 1,004,058 (337,295) NET CHANGE IN FUND BALANCE (12,853)$ 376,070 388,923$ FUND BALANCE, JANUARY 1 610,316 FUND BALANCE, DECEMBER 31 986,386$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL ASSISTANCE FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 134 - Original and Final Budget Actual Variance REVENUES Intergovernmental -$ 211,608$ 211,608$ Contributions 100,000 808,249 708,249 Fees - 33,442 33,442 Charges for services - 63,467 63,467 Investment income - 1,000 1,000 Miscellaneous 1,250,000 747,806 (502,194) Total revenues 1,350,000 1,865,572 515,572 EXPENDITURES General management and support - 638 638 Public works 14,342,000 6,936,663 (7,405,337) Capital outlay 2,113,000 5,523,387 3,410,387 Total expenditures 16,455,000 12,460,688 (3,994,312) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (15,105,000) (10,595,116) 4,509,884 OTHER FINANCING SOURCES (USES) Transfers in - 956,470 956,470 Issuance of bonds 10,903,000 - (10,903,000) Total other financing sources (uses)10,903,000 956,470 (9,946,530) NET CHANGE IN FUND BALANCE (4,202,000)$ (9,638,646) (5,436,646)$ FUND BALANCE, JANUARY 1 11,605,538 FUND BALANCE, DECEMBER 31 1,966,892$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL IMPROVEMENTS FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 135 - Original and Final Budget Actual Variance REVENUES Investment income -$ 92,567$ 92,567$ Miscellaneous Contributions 1,000,000 600,000 (400,000) Total revenues 1,000,000 692,567 (307,433) EXPENDITURES Public works - 49,722 49,722 Capital outlay 800,000 167,332 (632,668) Total expenditures 800,000 217,054 (582,946) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 200,000 475,513 275,513 OTHER FINANCING SOURCES (USES) Transfers (out)(900,000) (900,000) - Total other financing sources (uses)(900,000) (900,000) - NET CHANGE IN FUND BALANCE (700,000)$ (424,487) 275,513$ FUND BALANCE, JANUARY 1 5,729,818 FUND BALANCE, DECEMBER 31 5,305,331$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CROWN CONSTRUCTION FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 136 - Orginal Final Budget Budget Actual Variance REVENUES None -$ -$ -$ -$ Total revenues - - - - EXPENDITURES Capital outlay - 34,951 34,951 - Total expenditures - 34,951 34,951 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES - (34,951) (34,951) - OTHER FINANCING SOURCES (USES) Transfers in 175,000 175,000 175,000 - Total other financing sources (uses)175,000 175,000 175,000 - NET CHANGE IN FUND BALANCE 175,000$ 140,049$ 140,049 -$ FUND BALANCE, JANUARY 1 349,996 FUND BALANCE, DECEMBER 31 490,045$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CROWN MAINTENANCE FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 137 - Original and Final Budget Actual Variance REVENUES Special assessments 155,000$ 318,463$ 163,463$ Investment income - 27,115 27,115 Total revenues 155,000 345,578 190,578 EXPENDITURES Current General management and support - 60 60 Capital outlay 650,000 571,324 (78,676) Total expenditures 650,000 571,384 (78,616) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (495,000) (225,806) 269,194 OTHER FINANCING SOURCES (USES) Transfers (out)(464,938) (464,938) - Total other financing sources (uses)(464,938) (464,938) - NET CHANGE IN FUND BALANCE (959,938)$ (690,744) 269,194$ FUND BALANCE, JANUARY 1 2,133,596 FUND BALANCE, DECEMBER 31 1,442,852$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL ASSESSMENT CAPITAL PROJECTS FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 138 - Original and Original Final Final Budget Actual Budget Budget Actual Taxes Property taxes 1,000,000$ 1,139,750$ 221,000$ 221,000$ 222,830$ Investment income - 20,930 - - 1,808 Miscellaneous - - - - - Total revenues 1,000,000 1,160,680 221,000 221,000 224,638 Housing and economic development 1,345,000 153,766 221,000 221,862 221,862 Total expenditures 1,345,000 153,766 221,000 221,862 221,862 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (345,000) 1,006,914 - (862) 2,776 Transfers in (out) General (30,000) (30,000) - - - Other (234,763) (234,763) - - - Total other financing sources (uses)(264,763) (264,763) - - - NET CHANGE IN FUND BALANCE (609,763)$ 742,151 -$ (862)$ 2,776 FUND BALANCE, JANUARY 1 951,527 1,779 FUND BALANCE (DEFICIT), DECEMBER 31 1,693,678$ 4,555$ CITY OF EVANSTON, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND DEBT SERVICE FUNDS For the Year Ended December 31, 2022 CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OTHER FINANCING SOURCES (USES) EXPENDITURES REVENUES Increment District Chicago Main Tax Special Service Area No. 6 - 139 - Original Final Original Final Original Final Budget Budget Actual Budget Budget Actual Budget Budget Actual 142,000$ 142,000$ 150,456$ 60,200$ 60,200$ 62,376$ 160,000$ 160,000$ 224,028$ - - 359 - - 97 - - 5,772 - - - - - - - - - 142,000 142,000 150,815 60,200 60,200 62,473 160,000 160,000 229,800 140,000 147,094 147,094 60,200 61,162 61,162 2,000 9,958 9,959 140,000 147,094 147,094 60,200 61,162 61,162 2,000 9,958 9,959 2,000 (5,094) 3,721 - (962) 1,311 158,000 150,042 219,841 - - - - - - (10,000) (10,000) (10,000) - - - - - - (161,833) (161,833) (161,833) - - - - - - (171,833) (171,833) (171,833) 2,000$ (5,094)$ 3,721 -$ (962)$ 1,311 (13,833)$ (21,791)$ 48,008 8,715 3,218 325,004 12,436$ 4,529$ 373,012$ Dempster-Dodge Tax Increment District Special Service Area No. 7 Special Service Area No. 8 (This schedule is continued on the following page.) - 140 - Original Final Original Final Budget Budget Actual Budget Budget Actual Taxes Property taxes 1,100,000$ 1,100,000$ 1,198,459$ 1,450,000$ 1,450,000$ 1,518,582$ Investment income 400 400 46,043 4,000 4,000 50,722 Miscellaneous 5,366 5,366 76,588 11,000 11,000 - Total revenues 1,105,766 1,105,766 1,321,090 1,465,000 1,465,000 1,569,304 Housing and economic development 1,050,000 1,491,447 1,491,447 1,970,000 2,303,521 2,303,521 Total expenditures 1,050,000 1,491,447 1,491,447 1,970,000 2,303,521 2,303,521 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 55,766 (385,681) (170,357) (505,000) (838,521) (734,217) Transfers in (out) General (75,000) (75,000) (75,000) (75,000) (75,000) (75,000) Other (323,113) (323,113) (323,113) - - - Total other financing sources (uses)(398,113) (398,113) (398,113) (75,000) (75,000) (75,000) NET CHANGE IN FUND BALANCE (342,347)$ (783,794)$ (568,470) (580,000)$ (913,521)$ (809,217) FUND BALANCE, JANUARY 1 2,673,564 3,273,214 FUND BALANCE (DEFICIT), DECEMBER 31 2,105,094$ 2,463,997$ REVENUES EXPENDITURES OTHER FINANCING SOURCES (USES) Howard Ridge Tax Increment District West Evanston Tax Increment District CITY OF EVANSTON, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) DEBT SERVICE FUNDS For the Year Ended December 31, 2022 - 141 - Original Final Original Final Budget Budget Actual Budget Budget Actual -$ -$ -$ 4,133,200$ 4,133,200$ 4,516,481$ - - - 4,400 4,400 125,731 - - - 16,366 16,366 76,588 - - - 4,153,966 4,153,966 4,718,800 - 135,901 135,901 4,788,200 5,715,945 4,524,712 - 135,901 135,901 4,788,200 5,715,945 4,524,712 - (135,901) (135,901) (634,234) (1,561,979) 194,088 - - - (190,000) (190,000) (190,000) - - - (719,709) (719,709) (719,709) - - - (909,709) (909,709) (909,709) -$ (135,901)$ (135,901) (1,543,943)$ (2,471,688)$ (715,621) - 7,237,021 (135,901)$ 6,521,400$ Five Fifths Tax Increment District Total (See independent auditor's report.) - 142 - 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. Original and Final Budget Actual OPERATING REVENUES Charges for services 23,168,700$ 22,229,311$ Miscellaneous 528,650 696,241 Total operating revenues 23,697,350 22,925,552 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 1,988,650 872,283 Operations Pumping 2,886,697 2,364,710 Filtration 3,131,120 2,475,675 Distribution 1,659,399 1,423,024 Meter maintenance 412,175 260,378 Administration 1,655,468 1,023,577 Other 23,066,100 1,483,762 Total operating expenses excluding depreciation 34,799,609 9,903,409 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (11,102,259) 13,022,143 Depreciation - 3,342,779 OPERATING INCOME (LOSS)(11,102,259) 9,679,364 NON-OPERATING REVENUES (EXPENSES) Investment income 70,000 (80,377) Interest expense (3,596,365) (1,316,420) Claims reimbursements - - Issuance of bonds 6,410,000 - Issuance of loans 23,220,000 - Total non-operating revenues (expenses)26,103,635 (1,396,797) INCOME BEFORE TRANSFERS AND CONTRIBUTIONS 15,001,376 8,282,567 TRANSFERS AND CONTRIBUTIONS Transfers in - - Transfers (out)(4,049,559) (4,049,559) Contributions - - Total transfers and contributions (4,049,559) (4,049,559) NET INCOME 10,951,817$ 4,233,008 NET POSITION, JANUARY 1 81,908,542 NET POSITION, DECEMBER 31 86,141,550$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 143 - Original and Final Budget Actual CHARGES FOR SERVICES, NET Water Sales Evanston 9,754,000$ 9,259,634$ Skokie 3,883,200 3,335,672 Northwest Water Commission 6,257,000 6,625,624 Morton Grove Niles Water Commission 2,278,700 2,077,157 Lincolnwood 995,800 931,224 Total charges for services 23,168,700 22,229,311 MISCELLANEOUS Fees and outside work 73,000 87,966 Fees, merchandise, and other 455,650 608,275 Total miscellaneous 528,650 696,241 TOTAL OPERATING REVENUES 23,697,350$ 22,925,552$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL OPERATION AND MAINTENANCE ACCOUNT For the Year Ended December 31, 2022 WATER FUND (See independent auditor's report.) - 144 - 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. 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. Equipment Replacement Fleet Services Insurance Total CURRENT ASSETS Cash and cash equivalents 1,057,837$ -$ 70,000$ 1,127,837$ Receivables - other 4,994 - - 4,994 Inventories - 1,739,490 - 1,739,490 Prepaid items 1,831,867 - 4,317,963 6,149,830 Due from other funds 120,133 - - 120,133 Total current assets 3,014,831 1,739,490 4,387,963 9,142,284 CAPITAL ASSETS Capital assets being depreciated 27,002,108 617,552 - 27,619,660 Accumulated depreciation (19,728,752) (617,447) - (20,346,199) Total capital assets 7,273,356 105 - 7,273,461 Total assets 10,288,187 1,739,595 4,387,963 16,415,745 DEFERRED OUTFLOWS OF RESOUCES OPEB items - 18,833 - 18,833 Total deferred outflows of resources - 18,833 - 18,833 Total assets and deferred outflows of resources 10,288,187 1,758,428 4,387,963 16,434,578 CURRENT LIABILITIES Vouchers payable 304,430 199,045 120,709 624,184 Due to other funds - 998,045 2,277,209 3,275,254 Compensated absences payable - 17,163 - 17,163 Total OPEB liability - 4,224 - 4,224 Claims payable - - 701,992 701,992 Total current liabilities 304,430 1,218,477 3,099,910 4,622,817 LONG-TERM LIABILITIES General obligation bonds payable 660,000 - - 660,000 Compensated absences payable - 68,651 - 68,651 Total OPEB liability - 98,790 - 98,790 Claims payable - - 3,435,250 3,435,250 Total long-term liabilities 660,000 167,441 3,435,250 4,262,691 Total liabilities 964,430 1,385,918 6,535,160 8,885,508 DEFERRED INFLOWS OF RESOURCES OPEB items - 28,451 - 28,451 Total deferred inflows of resources - 28,451 - 28,451 Total liabilities and deferred inflows of resources 964,430 1,414,369 6,535,160 8,913,959 NET POSITION Net investment in capital assets 6,329,743 105 - 6,329,848 Unrestricted (deficit)2,994,014 343,954 (2,147,197) 1,190,771 TOTAL NET POSITION (DEFICIT)9,323,757$ 344,059$ (2,147,197)$ 7,520,619$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2022 (See independent auditor's report.) - 145 - Equipment Replacement Fleet Services Insurance Total OPERATING REVENUES Charges for services General Fund 234,299$ 2,200,000$ 3,600,000$ 6,034,299$ Sewer Fund - 260,000 352,190 612,190 Solid Waste - 302,000 - 302,000 Water Fund - 180,000 1,585,843 1,765,843 Motor Vehicle Parking System Fund - 160,000 351,502 511,502 Library Fund 4,885 5,440 - 10,325 Emergency Telephone System - - 18,230 18,230 Claims reimbursements - - 128,947 128,947 Health insurance contributions Contributions from other funds - - 9,678,230 9,678,230 Employee contributions - - 3,289,071 3,289,071 Other contributions - 24,579 566,822 591,401 Donations 877,905 - - 877,905 Total operating revenues 1,117,089 3,132,019 19,570,835 23,819,943 OPERATING EXPENSES General support - 1,147,133 77,590 1,224,723 Major maintenance 18 2,359,548 - 2,359,566 General liability claims - - 1,082,706 1,082,706 Workers' compensation claims - - 1,682,714 1,682,714 Health insurance premiums - - 14,375,841 14,375,841 Total operating expenses 18 3,506,681 17,218,851 20,725,550 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 1,117,071 (374,662) 2,351,984 3,094,393 Depreciation 1,506,351 - - 1,506,351 OPERATING INCOME (LOSS)(389,280) (374,662) 2,351,984 1,588,042 NON-OPERATING REVENUES (EXPENSES) Investment income 906 - - 906 Gain (loss) on sale of property 164,163 - - 164,163 Interest expense (8,188) - - (8,188) Total non-operating revenues (expenses)156,881 - - 156,881 INCOME (LOSS) BEFORE TRANSFERS (232,399) (374,662) 2,351,984 1,744,923 TRANSFERS Transfers in 2,400,000 - - 2,400,000 Total transfers 2,400,000 - - 2,400,000 CHANGE IN NET POSITION 2,167,601 (374,662) 2,351,984 4,144,923 NET POSITION (DEFICIT), JANUARY 1 7,156,156 718,721 (4,499,181) 3,375,696 NET POSITION (DEFICIT), DECEMBER 31 9,323,757$ 344,059$ (2,147,197)$ 7,520,619$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF REVENES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended December 31, 2022 AND CHANGES IN NET POSITION (See independent auditor's report.) - 146 - Equipment Replacement Fleet Services Insurance Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users -$ -$ 3,418,018$ 3,418,018$ Receipts from (payments for) Interfund services provided 1,117,089 3,107,440 15,585,995 19,810,524 Receipts from other agencies (4,994) 24,579 566,822 586,407 Payments to suppliers (1,071,254) (2,579,319) (77,590) (3,728,163) Payments to employees - (1,186,602) (1,095,022) (2,281,624) Payments for insurance premiums - - (19,470,627) (19,470,627) Net cash from operating activities 40,841 (633,902) (1,072,404) (1,665,465) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund transfers 2,400,000 - - 2,400,000 Interfund activity (276,406) 633,902 1,072,404 1,429,900 Net cash from noncapital financing activities 2,123,594 633,902 1,072,404 3,829,900 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets 164,163 - - 164,163 Acquisition and construction of capital assets (1,263,479) - - (1,263,479) Interest paid on general obligation bonds (8,188) - - (8,188) Net cash from capital and related financing activities (1,107,504) - - (1,107,504) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 906 - - 906 Net cash from investing activities 906 - - 906 NET INCREASE IN CASH AND CASH EQUIVALENTS 1,057,837 - - 1,057,837 CASH AND CASH EQUIVALENTS, JANUARY 1 - - 70,000 70,000 CASH AND CASH EQUIVALENTS, DECEMBER 31 1,057,837$ -$ 70,000$ 1,127,837$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)(389,280)$ (374,662)$ 2,351,984$ 1,588,042$ Adjustments to reconcile operating income (loss) to Net cash from operating activities Depreciation 1,506,351 - - 1,506,351 Changes in assets and liabilities Increase (decrease) in accounts receivable miscellaneous (4,994) - - (4,994) Prepaid expenses (700,051) - (59,300) (759,351) Inventories - (139,378) - (139,378) Compensated absences - (17,519) (12,316) (29,835) OPEB items - (21,950) - (21,950) Vouchers payable (371,185) (80,393) 12,586 (438,992) Claims payable - - (3,365,358) (3,365,358) NET CASH FROM OPERATING ACTIVITIES 40,841$ (633,902)$ (1,072,404)$ (1,665,465)$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2022 (This schedule is continued on the following page.) - 147 - Equipment Replacement Fleet Services Insurance Total NONCASH INVESTING, CAPITAL, AND RELATED FINANCING ACTIVITIES Capital assets acquired through vouchers and retainage payable 283,613$ -$ -$ 283,613$ INTERNAL SERVICE FUNDS For the Year Ended December 31, 2022 CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) (See independent auditor's report.) - 148 - COMPONENT UNIT - PUBLIC LIBRARY Permanent Capital Operating Endowment Improvement ASSETS Cash and investments 2,514,418$ 4,107,524$ 704,389$ Property taxes receivable 9,006,241 - - Other receivables 95 - - Due from primary government 200,546 - - Net pension asset - IMRF - - - Capital assets not being depreciated - - - Capital assets net of accumulated depreciation - - - Total assets 11,721,300 4,107,524 704,389 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF - - - OPEB items - - - Total deferred outflows of resources - - - Total assets and deferred outflows of resources 11,721,300$ 4,107,524$ 704,389$ LIABILITIES Current liabilities Accounts payable 175,222$ -$ -$ Accrued interest - - - Total current liabilities 175,222 - - Noncurrent liabilities Due within one year - - - Due in more than one year - - - Total noncurrent liabilities - - - Total liabilities 175,222 - - DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF - - - OPEB items - - - Unavailable property taxes 7,535,472 - - Total deferred inflows of resources 7,535,472 - - Total liabilities and deferred inflows of resources 7,710,694 - - FUND BALANCES/NET POSITION Net investment in capital assets - - - Restricted for pensions - - - Restricted for debt service - - - Restricted for capital improvements - - 704,389 Restricted for endowment - 4,107,524 - Unassigned/unrestricted (deficit)4,010,606 - - Total fund balances/net position 4,010,606 4,107,524 704,389 TOTAL FUND BALANCE/NET POSITION 11,721,300$ 4,107,524$ 704,389$ CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS STATEMENT OF NET POSITION AND COMBINING BALANCE SHEET December 31, 2022 - 149 - Statement of Debt Service Total Adjustments Net Position -$ 7,326,331$ -$ 7,326,331$ 507,913 9,514,154 - 9,514,154 - 95 - 95 2,782 203,328 - 203,328 - - 5,364,050 5,364,050 - - 311,380 311,380 - - 10,000,756 10,000,756 510,695 17,043,908 15,676,186 32,720,094 - - 663,705 663,705 - - 55,553 55,553 - - 719,258 719,258 510,695$ 17,043,908$ 16,395,444$ 33,439,352$ -$ 175,222$ -$ 175,222$ - - 19,348 19,348 - 175,222 19,348 194,570 - - 358,648 358,648 - - 6,528,417 6,528,417 - - 6,887,065 6,887,065 - 175,222 6,906,413 7,081,635 - - 4,065,223 4,065,223 - - 83,921 83,921 507,913 8,043,385 - 8,043,385 507,913 8,043,385 4,149,144 12,192,529 507,913 8,218,607 11,055,557 19,274,164 - - 4,081,234 4,081,234 - - 5,364,050 5,364,050 2,782 2,782 - 2,782 - 704,389 - 704,389 - 4,107,524 - 4,107,524 - 4,010,606 (4,105,397) (94,791) 2,782 8,825,301 5,339,887 14,165,188 510,695$ 17,043,908$ 16,395,444$ 33,439,352$ (See independent auditor's report.) - 150 - Permanent Capital Operating Endowment Improvement REVENUES Property taxes 7,348,375$ -$ -$ Intergovernmental Grant revenue 307,846 - - Charges for services 44,927 - - Fines and forfeits - - - Other Investment income 68,818 (1,012,208) - Donations 359,774 - - Miscellaneous 6,649 - - Total revenues 8,136,389 (1,012,208) - EXPENDITURES Current Community services 7,863,330 - - Capital outlay - - 173,737 Debt service Payment primary government - - - Principal - - - Interest and fiscal charges - - - Total expenditures 7,863,330 - 173,737 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 273,059 (1,012,208) (173,737) OTHER FINANCING SOURCES (USES) Transfer in 217,930 - - Transfer (out)- (217,930) - Total other financing sources (uses)217,930 (217,930) - NET CHANGE IN FUND BALANCE 490,989 (1,230,138) (173,737) FUND BALANCE/NET POSITION, JANUARY 1 3,519,617 5,337,662 878,126 FUND BALANCE/NET POSITION, DECEMBER 31 4,010,606$ 4,107,524$ 704,389$ STATEMENT OF ACTIVITIES AND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND For the Year Ended December 31, 2022 CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS - 151 - Statement of Debt Service Total Adjustments Activities 506,626$ 7,855,001$ -$ 7,855,001$ - 307,846 - 307,846 - 44,927 - 44,927 - - - - - (943,390) - (943,390) - 359,774 - 359,774 - 6,649 - 6,649 506,626 7,630,807 - 7,630,807 - 7,863,330 (669,840) 7,193,490 - 173,737 (173,737) - - - - - 264,706 264,706 (264,706) - 240,283 240,283 (33,802) 206,481 504,989 8,542,056 (1,142,085) 7,399,971 1,637 (911,249) 1,142,085 230,836 - 217,930 (217,930) - - (217,930) 217,930 - - - - - 1,637 (911,249) 1,142,085 230,836 1,145 9,736,550 4,197,802 13,934,352 2,782$ 8,825,301$ 5,339,887$ 14,165,188$ (See independent auditor's report.) - 152 - Original and Final Budget Actual Variance Taxes Property taxes 7,252,000$ 7,348,375$ 96,375$ Intergovernmental Grant revenue 414,866 307,846 (107,020) Charges for services 150,567 44,927 (105,640) Fines and forfeits - - - Other Investment income 15,000 68,818 53,818 Donations 400,000 359,774 (40,226) Miscellaneous 10,000 6,649 (3,351) Total revenues 8,242,433 8,136,389 (106,044) General management and support 8,657,612 7,863,330 (794,282) Total expenditures 8,657,612 7,863,330 (794,282) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (415,179) 273,059 688,238 Transfers in 415,911 217,930 (197,981) Total other financing sources (uses)415,911 217,930 (197,981) NET CHANGE IN FUND BALANCE 732$ 490,989 490,257$ FUND BALANCE, JANUARY 1 3,519,617 FUND BALANCE, DECEMBER 31 4,010,606$ REVENUES EXPENDITURES OTHER FINANCING SOURCES (USES) CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITRUES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL LIBRARY OPERATING FUND For the Year Ended December 31, 2022 (See independent auditor's report.) - 153 - STATISTICAL SECTION This part of the City of Evanston, Illinois’ annual comprehensive 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. 154-163 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 164-166 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. 167-172 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. 173-174 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. 175-179 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Fiscal Year 2013 2014 2015*2016 GOVERNMENTAL ACTIVITIES Net investment in capital assets 47,214$ 46,633$ 47,953$ 51,588$ Restricted 24,720 25,446 16,409 18,523 Unrestricted (13,846) (11,436) (136,007) (170,270) TOTAL GOVERNMENTAL ACTIVITIES 58,088$ 60,643$ (71,645)$ (100,159)$ BUSINESS-TYPE ACTIVITIES Net investment in capital assets 239,243$ 246,382$ 255,622$ 268,851$ Restricted 712 649 - - Unrestricted 25,484 23,563 22,785 18,928 TOTAL BUSINESS-TYPE ACTIVITIES 265,439$ 270,594$ 278,407$ 287,779$ PRIMARY GOVERNMENT Net investment in capital assets 286,457$ 293,015$ 303,575$ 320,439$ Restricted 25,432 26,095 16,409 18,523 Unrestricted 11,638 12,127 (113,222) (151,342) TOTAL PRIMARY GOVERNMENT 323,527$ 331,237$ 206,762$ 187,620$ Data Source City Finance Division *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. CITY OF EVANSTON, ILLINOIS NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) - 154 - 2017 2018**2019 2020 2021 2022 51,575$ 52,536$ 53,784$ 65,388$ 69,636$ 80,018$ 11,990 8,708 15,554 19,843 23,472 62,604 (164,614) (194,435) (181,451) (199,044) (164,859) (173,298) (101,049)$ (133,191)$ (112,113)$ (113,813)$ (71,751)$ (30,676)$ 278,446$ 283,981$ 289,023$ 284,516$ 289,165$ 296,945$ - - - - - 9,268 14,249 11,896 9,883 16,150 20,315 11,607 292,695$ 295,877$ 298,906$ 300,666$ 309,480$ 317,820$ 330,021$ 336,517$ 342,807$ 349,904$ 358,801$ 376,963$ 11,990 8,708 15,554 19,843 23,472 71,872 (150,365) (182,539) (171,568) (182,894) (144,544) (161,691) 191,646$ 162,686$ 186,793$ 186,853$ 237,729$ 287,144$ - 155 - Fiscal Year 2013 2014 2015 2016 EXPENSES Governmental activities General management and support 18,892$ 13,811$ 12,493$ 18,163$ Public safety 57,090 58,795 57,443 55,625 Public works 13,782 25,825 20,011 13,668 Health and human resource development 3,601 3,837 2,911 3,319 Recreational and cultural opportunities 16,433 9,358 14,794 14,380 Housing and economic development 11,123 12,443 10,532 21,063 Interest 377 3,919 3,757 3,779 Total governmental activities expenses 121,298 127,988 121,941 129,997 Business-type activities Water 11,193 11,977 10,748 11,450 Sewer 7,649 7,293 6,608 6,683 Solid waste 4,732 4,856 5,150 4,967 Motor vehicle parking system 8,369 7,856 7,862 8,532 Total business-type activities expenses 31,943 31,982 30,368 31,632 TOTAL PRIMARY GOVERNMENT EXPENSES 153,241$ 159,970$ 152,309$ 161,629$ PROGRAM REVENUES Governmental activities Charges for services General management and support 8,917$ 9,374$ 8,629$ 10,094$ Culture and recreation 5,236 5,360 5,572 5,560 Other activities 12,179 15,253 11,268 15,739 Operating grants and contributions 10,102 7,151 5,535 6,809 Capital grants and contributions 2,956 501 275 368 Total governmental activities program revenues 39,390 37,639 31,279 38,570 Business-type activities Charges for services Water 14,658 15,052 15,722 16,419 Sewer 13,510 12,785 12,511 13,049 Solid waste 3,651 3,971 4,004 4,031 Motor vehicle parking system 6,255 6,080 6,164 6,688 Operating grants and contributions 939 15 - 38,400 Capital grants and contributions - - - - Total business-type activities program revenues 39,013 37,903 38,401 78,587 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 78,403$ 75,542$ 69,680$ 117,157$ NET REVENUE (EXPENSE) Governmental activities (81,908)$ (90,349)$ (90,662)$ (91,427)$ Business-type activities 7,070 5,921 8,033 46,955 TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE)(74,838)$ (84,428)$ (82,629)$ (44,472)$ CITY OF EVANSTON, ILLINOIS CHANGE IN NET POSITION Last Ten Fiscal Years (amounts expressed in thousands) - 156 - 2017 2018 2019 2020 2021 2022 20,890$ 20,016$ 19,444$ 18,630$ 19,041$ 22,825$ 61,191 80,789 56,755 83,015 58,842 70,097 24,793 22,718 26,584 18,573 16,861 20,712 3,354 3,455 2,895 3,719 3,970 3,158 14,744 14,061 11,081 1,326 9,148 11,098 7,023 9,129 6,907 20,992 11,046 10,318 3,354 4,683 5,454 5,252 4,430 5,161 135,349 154,851 129,120 151,507 123,338 143,369 12,239 12,964 12,880 13,612 14,562 14,563 6,540 6,735 6,492 6,795 6,706 6,386 4,907 4,852 5,079 5,316 5,476 5,149 8,575 9,321 9,585 8,982 8,395 8,882 32,261 33,872 34,036 34,705 35,139 34,980 167,610$ 188,723$ 163,156$ 186,212$ 158,477$ 178,349$ 8,145$ 8,985$ 8,768$ 7,267$ 8,736$ 9,403$ 5,669 6,037 6,119 4,831 6,080 6,962 12,712 11,945 10,917 12,200 12,090 16,260 5,931 5,244 5,775 9,672 10,067 9,913 325 125 8,630 2,971 4,275 937 32,782 32,336 40,209 36,941 41,248 43,475 17,588 15,642 17,789 23,934 20,900 22,926 12,478 11,920 10,780 10,242 10,374 9,638 4,061 4,083 4,668 4,618 4,969 5,324 6,530 6,621 10,640 7,289 8,090 8,889 - - - - - - - - - 383 - - 40,657 38,266 43,877 46,466 44,333 46,777 73,439$ 70,602$ 84,086$ 83,407$ 85,581$ 90,252$ (102,567)$ (122,515)$ (88,911)$ (114,566)$ (82,090)$ (99,894)$ 8,396 4,394 9,841 11,761 9,194 11,797 (94,171)$ (118,121)$ (79,070)$ (102,805)$ (72,896)$ (88,097)$ - 157 - Fiscal Year 2013 2014 2015 2016 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities Taxes Property taxes 46,349$ 48,579$ 45,840$ 45,610$ Sales taxes 16,965 17,362 17,758 17,932 Intergovernmental - - - - Investment earnings 79 (258) 30 118 Miscellaneous 27,369 26,612 30,950 33,217 Transfers (2,586) 610 631 434 Total governmental activities 88,176 92,905 95,209 97,311 Business-type activities Property taxes - - - - Investment earnings 33 (156) 27 59 Gains on sale of capital assets - - - - Miscellaneous (61) - 301 (245) Transfers 2,586 (610) (631) (434) Total business-type activities 2,558 (766) (303) (620) CHANGE IN NET POSITION Governmental activities 6,268 2,556 4,547 5,884 Business-type activities 9,628 5,155 7,730 46,335 TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION 15,896$ 7,711$ 12,277$ 52,219$ Data Source City Finance Division Last Ten Fiscal Years (amounts expressed in thousands) CITY OF EVANSTON, ILLINOIS CHANGE IN NET POSITION (Continued) - 158 - 2017 2018 2019 2020 2021 2022 46,563$ 47,102$ 44,163$ 51,655$ 53,269$ 52,498$ 16,071 16,963 16,905 16,445 21,497 23,443 - - - - 4,800 7,659 235 778 1,669 423 74 1,334 35,011 38,786 39,051 34,123 42,242 51,246 3,797 1,480 8,203 10,219 2,270 4,790 101,677 105,109 109,991 112,865 124,152 140,970 - 410 820 1,333 1,333 1,333 114 234 565 140 (39) - - - 7 - 217 - 203 - - - 379 - (3,797) (1,480) (8,203) (10,219) (2,270) (4,790) (3,480) (836) (6,811) (8,746) (380) (3,457) (890) (17,406) 21,080 (1,701) 42,062 41,076 4,916 3,558 3,030 3,015 8,814 8,340 4,026$ (13,848)$ 24,110$ 1,314$ 50,876$ 49,416$ - 159 - Fiscal Year 2013 2014 2015 2016 GENERAL FUND Nonspendable -$ -$ 118$ -$ Assigned 6,362 5,347 5,672 5,046 Unassigned 10,001 9,636 4,914 6,622 TOTAL GENERAL FUND 16,363$ 14,983$ 10,586$ 11,668$ ALL OTHER GOVERNMENTAL FUNDS Nonspendable 407$ 1,430$ 2,158$ -$ Restricted 25,359 26,003 16,409 18,523 Committed 3,507 3,540 2,556 2,996 Assigned 8,372 10,467 5,517 7,668 Unassigned (149) (153) (221) (252) TOTAL ALL OTHER GOVERNMENTAL FUNDS 37,496$ 41,287$ 26,419$ 28,935$ Data Source City Finance Division CITY OF EVANSTON, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (amounts expressed in thousands) - 160 - 2017 2018 2019 2020 2021 2022 300$ 310$ 415$ 220$ 125$ 103$ 4,180 4,303 4,330 1,573 1,807 3,345 8,868 9,242 11,145 16,882 31,739 57,675 13,348$ 13,855$ 15,890$ 18,675$ 33,671$ 61,123$ -$ -$ -$ -$ -$ -$ 11,418 25,651 15,933 19,457 27,151 22,962 - - - - - - 12,301 17,065 20,306 13,324 12,910 7,762 (204) (227) (226) (215) (207) (336) 23,515$ 42,489$ 36,013$ 32,566$ 39,854$ 30,388$ - 161 - Fiscal Year 2013 2014 2015 2016 REVENUES Taxes 78,254$ 77,933$ 75,747$ 76,047$ Licenses, fees, and permits 10,617 14,503 12,184 17,933 Special assessments 275 167 8,312 169 Intergovernmental 27,844 24,300 3,554 24,886 Charges for services 7,723 7,793 23,834 8,791 Fines and penalties 3,449 3,358 148 3,612 Investment earnings 94 89 30 118 Other revenues 1,906 1,791 1,722 3,892 Total revenues 130,162 129,934 125,531 135,448 EXPENDITURES General management and support 17,611 13,314 13,444 17,064 Public safety 56,431 59,425 59,654 62,252 Public works 11,982 19,821 19,815 13,477 Health and human development 3,601 3,837 3,141 3,021 Recreation and cultural opportunities 14,775 10,524 11,087 11,894 Housing and economic development 11,305 9,348 13,292 10,477 Capital outlay 5,948 6,286 9,151 9,953 Debt service Principal 34,259 10,040 20,833 19,661 Interest 4,996 4,411 4,413 4,276 Fiscal agent fees 127 43 16 14 Total expenditure 161,035 137,049 154,846 152,089 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (30,873) (7,115) (29,315) (16,641) OTHER FINANCING SOURCES (USES) Proceeds from borrowing 34,982$ 9,989$ 22,377$ 19,652$ Payment to escrow agent - - - - Transfers in 8,182 9,202 10,308 16,011 Transfers (out)(11,879) (9,665) (9,315) (15,542) Total other financing sources (uses)31,285 9,526 23,370 20,121 NET CHANGE IN FUND BALANCES 412$ 2,411$ (5,945)$ 3,480$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 25.31%11.05%17.33%17.62% Data Source City Finance Division CITY OF EVANSTON, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (amounts expressed in thousands) - 162 - 2017 2018 2019 2020 2021 2022 78,157$ 81,281$ 78,645$ 82,567$ 92,738$ 98,538$ 13,358 11,664 10,012 11,853 11,033 12,562 260 199 230 185 109 318 22,627 23,004 25,278 27,592 38,587 43,756 8,713 10,053 8,925 7,879 10,762 14,549 3,468 3,765 5,108 2,983 3,644 3,790 235 778 1,669 423 74 1,334 3,843 5,220 12,130 6,105 6,184 4,810 130,661 135,964 141,997 139,587 163,131 179,657 18,152 18,330 19,206 18,767 19,708 24,065 64,347 65,533 65,821 66,970 67,159 66,387 14,041 22,069 15,848 18,787 20,930 23,663 3,111 3,142 2,989 3,749 4,473 4,781 12,371 12,789 12,247 9,351 11,036 11,352 7,225 9,006 6,567 9,043 10,372 11,432 14,953 11,399 39,796 12,389 2,480 6,676 24,253 17,557 10,166 9,988 9,311 10,054 4,040 4,536 5,749 5,643 5,604 5,642 2 537 274 214 172 7 162,495 164,898 178,663 154,901 151,245 164,059 (31,834) (28,934) (36,666) (15,314) 11,886 15,598 26,558$ 46,892$ 23,976$ 18,576$ 12,954$ -$ - - - (12,143) (3,975) - 17,428 20,698 14,405 15,633 10,831 12,292 (15,893) (19,174) (6,156) (7,414) (9,411) (9,903) 28,093 48,416 32,225 14,652 10,399 2,389 (3,741)$ 19,482$ (4,441)$ (662)$ 22,285$ 17,987$ 19.18%14.39%11.62%11.40%10.45%10.56% - 163 - 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 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 1.766 2015 1,751,252,888 15,467 410,670,248 32,549,681 1,533,241 2,196,021,525 6,588,064,575 1.762 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 2018 2,150,065,734 15,467 537,739,734 31,050,996 1,708,983 2,720,580,914 8,161,742,742 1.570 2019 2,653,214,356 15,467 742,361,383 34,692,634 1,864,707 3,432,148,547 10,296,445,641 1.413 2020 2,686,706,545 15,467 735,655,726 37,326,126 1,943,606 3,461,647,470 10,384,942,410 1.452 2021 2,492,953,368 15,467 690,224,247 35,719,445 1,943,606 3,220,856,133 9,662,568,399 1.518 Note: Source: Illinois Department of Revenue and Cook County Clerk's Office Property is reassessed once every three years.Equalized Assessed value is approximately 1/3 of actual value.Tax rates are per $100 of equalized assessed value. - 164 - CITY OF EVANSTON, ILLINOIS Principal Property Taxpayers Current Year and Nine Years Ago Percentage Percentage Total of Total City Total of Total City Equalized Assessed Taxable Equalized Assessed Taxable Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV Orrington TT LLC Golub 35,122,432$ 1 1.09%Grubb & Ellis 23,750,814$ 1 0.87% Rotary International 32,617,561 2 1.01%Rotary International 19,957,955 2 0.73% FSP 909 Davis Street 30,186,726 3 0.94%Lowe Enterprises 19,687,132 3 0.72% 900 950 Church Street 19,070,184 4 0.59%Church Street Plaza 17,812,119 4 0.65% TIAA PK Evanston INC 17,653,291 5 0.55%NNN Church Street Office Center 13,041,620 5 0.48% MB Sherman Highlands 16,772,338 6 0.52%Evanston Hotel Assoc.11,605,700 6 0.43% FDS/David Alperstein 15,849,187 7 0.49%Inland 10,956,173 7 0.40% 1890 Maple LLC 15,780,077 8 0.49%Church & Chicago Limited Partnership 10,825,746 8 0.40% 500 Davis Owner LLC 14,330,695 9 0.44%Northshore University Healthcare 10,417,651 9 0.38% Azurri of Evanston 13,321,070 10 0.41%Paradigm Tax Group 9,005,460 10 0.33% Total 210,703,561$ 6.54% Total 147,060,370$ 5.39% Total EAV 3,220,856,133$ Total EAV 2,727,367,573$ Source: Cook County 2021 Levy 2012 Levy - 165 - 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 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 49,032,839 98.63%217,133 49,249,972 99.07% 2019 55,139,563 54,616,777 99.05%186,248 54,803,025 99.39% 2020 55,711,545 55,836,792 100.22%538,227 56,375,019 101.19% 2021 55,711,545 57,100,401 102.49%531,709 57,632,110 103.45% 2022 55,711,545 See Note See Note See Note See Note See Note Note: Levy Year 2022 is collected through December 31, 2023 Source: City Finance Division - 166 - 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 2013 74,619 2,514,621,552$ 153,460,742$ 12,520,761$ 40,042,921$ 100,897,060$ 3,113,477,775$ 6.10%4.93%1,352.16 2014 75,570 2,201,697,038 150,421,841 12,209,139 34,614,357 103,598,345 3,262,734,750 6.83%4.61%1,370.89 2015 75,570 2,244,569,975 149,352,238 438,453 37,651,325 111,262,460 3,124,063,800 6.65%4.78%1,472.31 2016 75,603 2,196,021,525 147,017,512 745,997 34,547,933 111,723,582 3,235,052,370 6.69%4.54%1,477.77 2017 75,472 2,670,411,769 148,627,212 241,781 37,104,152 111,281,279 3,316,617,040 5.57%4.48%1,474.47 2018 75,557 2,740,060,120 178,238,427 417,987 39,701,503 138,118,937 3,472,297,492 6.50%5.13%1,828.01 2019 73,473 2,720,580,914 195,456,220 417,431 42,263,176 152,775,613 3,800,243,979 7.18%5.14%2,079.34 2020 73,473 3,432,148,547 199,878,623 721,459 38,634,626 160,522,538 3,800,243,979 5.82%5.26%2,184.78 2021 77,517 3,461,647,470 196,907,459 8,675,881 37,196,303 151,035,275 4,193,335,350 5.69%4.70%1,948.41 2022 77,517 3,220,856,133 184,620,461 8,478,464 35,881,685 140,260,312 4,466,994,642 5.73%4.13%1,809.41 Notes: (1) (2)Excludes limited purpose special service district bonds. (3) (4)2022 data not available for Personal Income or Census Data, so 2021 data was used 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. - 167 - CITY OF EVANSTON, ILLINOIS Ratio of Outstanding Debt by Type Last Ten Fiscal Years (2) 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 2013 120,915,723$ 1,175,000$ -$ 31,370,019$ 305,000$ 64,658,382$ 218,424,124$ 7.02%2,890$ 2014 119,060,744 795,000 - 30,566,097 - 58,412,659 208,834,500 6.40%2,763 2015 117,035,540 405,000 - 31,911,608 - 51,901,172 201,253,320 6.44%2,673 2016 116,091,162 - - 30,926,350 - 45,256,237 192,273,749 5.94%2,543 2017 122,151,162 - - 26,476,050 - 40,328,108 188,955,320 5.70%2,504 2018 151,056,754 - - 27,182,674 - 34,921,821 213,161,249 6.14%2,821 2019 164,873,935 - - 30,582,285 - 40,691,551 236,147,771 6.21%3,125 2020 161,243,997 - - 38,634,626 - 43,407,478 243,286,101 5.80%3,214 2021 159,711,156 - - 37,196,303 - 40,272,232 237,179,691 5.66%3,036 2022 148,738,775 - - 35,881,686 47,503,827 232,124,288 5.20%2,972 Notes: (1) (2) Source: City Finance Division Governmental Activities Business- Type Activities See the Schedule of Demographics and Economic Statistics for personal income and population data. Details regarding the City's outstanding debt can be found in the notes to the financial statements. - 168 - Percentage of Debt The City's Total Applicable Share of Debt Outstanding to the City (1) Direct debt - bonds, notes, and contracts outstanding 148,738,775$ 100.00%148,738,775$ Other bonded debt by taxing body High School District 202 23,365,000 100.00%23,365,000 School District 65 64,886,167 91.55%59,402,030 Community College District 535 47,200,000 13.44%6,343,617 Cook County 2,596,351,750 2.06%53,357,003 Cook County Forest Preserve District 122,255,000 2.06%2,512,433 Metropolitan Water Reclamation District 2,181,154,590 2.09%45,606,613 Skokie Park District 19,819,679 0.84%166,008 Total Overlapping Debt 5,055,032,186 190,752,703 Total Direct and Overlapping Debt 5,203,770,961$ 339,491,478$ (Less Debt Supported by Other Sources) Note: Overlapping debt calculated based on the pro rata EAV. Source: Bonds Statement CITY OF EVANSTON, ILLINOIS Direct and Overlapping Governmental Activities Debt As of December 31, 2022 - 169 - The City is a home rule municipality. To date, the Illinois General Assembly has set no limits for home rule municipalities. CITY OF EVANSTON, ILLINOIS Legal Debt Margin December 31, 2022 Chapter 65, Section 5/8-5-1 of the Illinois Compiled Statutes governs computation of the legal debt margin. “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.” - 170 - CITY OF EVANSTON, ILLINOIS Pledged-Revenue Coverage Last Ten Fiscal Years Utility Less:Net Fiscal Year Service Operating Available Ended Charges Expenses Resources Principal Interest Coverage 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 2019 NA NA NA - - NA 2020 NA NA NA - - NA 2021 NA NA NA - - NA 2022 NA NA NA - - NA The City has no revenue bonds outstanding after December 31, 2014. Source: Various City departments Water Revenue Bonds Debt Service 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. * - 171 - CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Nine Years Ago Employer Employees %Rank Employer Employees %Rank Northwestern University 6,500 39%1 Northwestern University 10,858 51%1 Northshore University Health System 4,788 28%2 Evanston Northwestern Healthcare 4,377 21%2 Evanston School District 65 1,511 9%3 Evanston School District 65 1,550 7%3 City of Evanston 819 5%5 St. Francis Hospital 1,176 6%4 Presence Saint Francis Hospital 800 5%4 City of Evanston 828 4%5 School District 202 640 4%6 Presbyterian Homes/McGaw Care 622 3%6 Rotary International 549 3%7 School District 202 544 3%7 ZS Associates 517 3%8 Rotary International 535 3%8 West Minster Pl., McGaw Care Center 455 3%9 Jewel/Osco Food Stores 418 2%9 C.E. Neifhoff & Co.290 2%10 C.E. Neihoff & Co.415 2%10 Total 16,869 Total 21,323 Source: City Economic Development Division 2022 2013 - 172 - 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 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% 2019 73,473 3,800,243,979 51,723 35.1 99.7%11,601 3.7% 2020 78,110 4,193,335,350 53,685 36.2 94.2%11,132 3.7% 2021 77,517 4,466,994,642 57,626 36.2 95.4%11,132 5.8% Note: 2022 data not available - 173 - CITY OF EVANSTON, ILLINOIS Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program General Government City Clerk 2.20 2.20 2.00 2.00 2.00 1.00 2.00 1.00 2.00 3.00 City Manager's Office 12.00 14.00 13.00 28.50 32.00 30.00 27.50 28.50 28.50 30.50 Legal 8.00 7.00 8.00 8.00 4.50 4.50 4.50 4.50 4.50 7.00 Administrative Services 59.00 49.00 51.00 57.20 57.70 55.70 53.10 54.10 54.50 58.00 Community Development 24.00 21.00 19.00 21.50 26.25 22.00 23.50 25.75 30.15 27.45 Police 220.00 227.00 227.00 225.50 225.80 220.00 217.00 216.00 201.00 201.00 Fire 106.00 110.00 110.00 110.00 110.00 110.00 110.00 110.00 110.00 110.00 Human and Health Services 20.00 21.10 22.10 21.10 21.10 21.75 17.75 8.75 8.75 13.25 Parks and Recreation 69 69.64 74.23 77.13 78.83 76.13 75.46 69.08 69.21 73.71 Public Works 97 108.45 107.45 84.25 84.25 72.5 70.00 71.00 69.00 78.50 Total General Government 617.20 629.39 633.78 635.18 642.43 613.58 600.81 588.68 577.61 602.41 Library 63.00 63.13 66.45 66.87 73.88 71.05 69.81 78.45 78.04 79.58 Neighborhood Stabilization Program 1.00 1.31 0.50 0.45 0.3 0.15 - - - - Housing Rehabilitation - - 1.75 1.75 1.75 1.75 1.75 1.50 1.43 1.35 - - - - - - - 17.90 17.90 17.00 General Assistance Fund - - 4.00 4.00 4.00 4.25 4.25 4.25 4.25 4.25 HOME Fund - - 0.40 0.50 0.50 0.35 0.35 0.35 0.73 0.70 Emergency Telephone System 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00 CDBG 3.00 2.60 2.60 2.80 2.50 2.75 2.90 4.40 2.90 5.60 Economic Development Fund 5.00 6.25 6.25 - - - - - - - Capital Improvements Fund - - - - - 4.50 4.50 4.50 4.50 - Parking Fund 15.50 15.50 15.50 15.50 15.50 18.00 19.00 17.00 16.50 16.00 Water 40.00 42.50 44.50 44.50 44.50 45.75 45.25 46.25 47.75 48.25 Sewer 11.00 13.33 11.33 11.33 11.33 12.25 12.25 12.25 12.75 11.75 Solid Waste 8.00 9.66 9.66 9.66 9.66 10.5 11.50 13.50 13.50 15.50 Fleet Services 10.00 12.00 12.50 12.50 12.00 9.50 9.90 9.90 10.00 11.00 Insurance Fund 4.00 5.00 5.00 5.00 5.50 5.50 5.50 5.50 5.50 - Total Other Functions 164.50 176.28 185.44 179.86 186.42 191.3 191.96 220.75 221.75 216.98 Total All Funds 781.70 805.67 819.22 815.04 828.85 804.88 792.77 809.43 799.36 819.39 Source: City of Evanston HR Division Human Services Fund - 174 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 City of Evanston*1.551 1.760 1.766 1.800 1.536 1.524 1.604 1.446 1.452 1.518 Consolidated Elections - 0.031 - 0.034 - 0.031 - 0.030 - Cook County 0.531 0.560 0.568 0.552 0.533 0.496 0.489 0.454 0.453 0.446 Cook County Forest Preserve District 0.063 0.069 0.069 0.069 0.063 0.062 0.060 0.059 0.058 0.058 Metropolitan Water Reclamation District 0.370 0.417 0.430 0.426 0.406 0.402 0.396 0.389 0.378 0.382 North Shore Mosquito Abatement District 0.010 0.007 0.011 0.012 0.010 0.010 0.010 0.009 0.009 0.009 Evanston Township 0.010 0.053 - -- - - - - Community College 535 0.219 0.256 0.258 0.271 0.231 0.232 0.246 0.221 0.227 0.252 School District 202 2.308 2.689 2.659 2.792 2.332 2.329 2.462 2.024 2.072 2.286 School District 65 3.149 3.671 3.686 3.810 3.676 3.673 3.891 3.185 3.258 3.593 Total Tax Rate for Property not in Park District or Special Service District 8.211 9.513 9.447 9.766 8.787 8.759 9.158 7.817 7.907 8.544 Percent of Total Tax Rate Levied by City of Evanston 18.89%18.50%18.69%18.43%17.48%17.40%17.51%18.50%18.36%17.77% *City of Evanston rate includes General Assistance beginning in 2014. Does not include Evanston Public Library. Note: 2022 data not available Source: Cook County Assessor's office Government Unit - 175 - CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer Last Ten Fiscal Years (in 100 cubic feet) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Type of Customer Residential 2,189,588$ 2,065,980$ 2,098,160$ 2,057,713$ 2,285,759$ 2,344,636$ 2,208,023$ 2,058,029$ 2,098,289$ 1,946,416$ Industrial 12,392 11,627 10,772 9,808 12,777 16,405 14,182 1,111,151 10,589 9,233 Commercial 1,105,077 1,036,034 1,045,791 1,061,080 1,115,236 1,083,414 1,154,229 815,275 925,927 919,082 Government 61,908 53,732 55,485 57,965 67,547 72,062 69,065 38,856 27,900 18,442 Total 3,368,965$ 3,167,373$ 3,210,208$ 3,186,566$ 3,481,319$ 3,516,517$ 3,445,499$ 4,023,311$ 3,062,705$ 2,893,173$ Total direct rate per 100 cubic feet 1.80$ 1.98$ 2.18$ 2.18$ 2.31$ 2.47$ 2.74$ 2.74$ 2.89$ 3.17$ Source: City of Evanston Public Works Agency - 176 - CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Type of Customer Evanston residents/businesses 5,915,560$ 6,301,307$ 6,975,785$ 6,820,350$ 7,280,260$ 7,640,457$ 8,235,089$ 8,613,315$ 8,636,384$ 9,085,988$ Village of Skokie 2,772,424 2,805,425 2,854,684 2,941,912 3,651,338 5,773,487 5,572,511 2,489,520 3,491,947 3,335,672 Northwest Water Commission 5,183,425 5,074,770 5,183,391 5,695,812 5,898,670 5,963,424 5,416,394 5,549,357 5,670,328 6,625,624 Morton Grove and Niles - - - - - 19,830 1,075,089 1,918,954 1,813,040 2,077,157 Village of Lincolnwood - - - - - - - 352,370 509,932 931,224 Total 13,871,409$ 14,181,502$ 15,013,860$ 15,458,074$ 16,830,268$ 19,397,198$ 20,299,083$ 18,923,515$ 20,121,631$ 22,055,665$ Source: City Utilities Department - 177 - CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program Police Violent offenses 131 97 80 130 122 140 73 88 96 114 Property offenses 1,980 1,959 1,872 1,681 1,777 1,708 1,979 1,481 2,453 2,910 911 calls received 42,551 44,177 46,749 42,763 38,525 36,642 39,357 38,279 40,924 39,634 Fire Emergency responses 9,373 9,617 9,630 10,267 10,058 10,014 10,256 9,091 9,867 11,083 Fires extinguished 129 120 99 114 90 111 69 77 89 105 Inspections 660 740 760 760 1,267 1,275 446 728 850 900 EMS Responses (reported beginning 2016)- - - 6,441 6,456 6,419 6,678 5,912 6,529 7,542 Other Public Works Street resurfacing (estimated miles)3.4 4.9 2.7 2.9 2.9 2.9 1.9 2.9 2.65 2.65 Parks and Recreation Athletic field usage (hours)16,367 16,270 15,531 27,426 22,920 24,263 22,054 8,749 17,287 18,868 Picnic permits issued 445 448 404 229 652 572 641 94 644 650 Library Volumes in collection (online & physical materials)400,034 401,300 481,626 534,533 540,696 514,756 562,567 535,527 424,619 654,134 Total volumes borrowed 1,056,243 1,074,972 1,071,401 1,078,653 1,039,585 1,207,419 1,191,600 699,631 1,139,779 964,682 Water New connections - 18 9 3 3 7 15 8 10 7 Water main breaks 51 70 23 28 28 32 28 29 40 39 Average daily consumption (millions of gallons)35.81 36.79 36.63 39.645 39.645 41.122 43.151 46.50 48.30 46.00 Peak daily consumption (millions of gallons)56.95 48.91 50.59 55.084 55.084 55.291 60.248 62.63 66.50 60.76 Note: Indicators are not available for general government functions - 178 - CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program Police Number of stations 1 1 1 1 1 1 1 1 1 1 Budgeted sworn officers 164 164 164 165 165 165 166 154 153 153 Fire Stations 5 5 5 5 5 5 5 5 5 5 Other Public Works Streets (miles)147 147 147 147 147 147 147 147 147 147 Streetlights 5,641 5,641 5,641 5,736 5,736 5,736 5,641 5,641 5,675 5,675 Parks and Recreation Acreage 290 290 290 290 290 290 290 290 290 290 Playgrounds 51 51 51 51 51 60 60 60 60 60 Baseball/softball diamonds 18 18 18 18 18 13 16 16 16 16 Soccer/football fields 27 27 27 27 27 27 27 27 27 27 Community centers 5 5 6 6 7 7 7 7 7 7 Water Water mains (miles)157 157 156.4 155.6 155.6 155.8 157.5 156.2 156.0 156.0 Fire hydrants 1,399 1,477 1,484 1,490 1,490 1,508 1,511 1,501 1,522 1,531 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; Budget Source: City Finance division - 179 -