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Home My WebLink About2024 Popular Annual Financial Report,or K, soM ~Jr CITY OF EVANSTON ILLINOIS 14'POPULAR ANNUAL FINANCIALREPORT f For the year ended December 31, 2024441, : 4 k. t AI T.. . • City of Evanston" Letter from the City To the Residents of Evanston, The City of Evanston is committed to a policy of transparency in its budget process and financial information. To continue this long-standing practice, we are pleased to present the City's first Popular Annual Financial Report (PAFR) for the fiscal year ended December 31, 2024. The PAFR is a snapshot of information from the City's Annual Comprehensive Financial Report (ACFR) which represents the City's audited financial statements for Fiscal Year 2024. The City received a favorable opinion from independent auditors affirming that the financial statements contained within the ACFR are presented in conformity with the generally accepted accounting principles (GAAP) for local governments and municipalities. The PAFR is intended to provide the reader with a general understanding of the City's financial activities. Please note that while Evanston Public Library (EPL) is a component unit of Evanston's government, not all EPL financial information is contained in this report. The current and prior year ACFRs, along with the City's monthly financial reports and annual budget, are available on the City's website. We hope this report provides you with an increased understanding of the City's finances. Sincerely, The City Manager's Office, Finance Division GOVERNMENT FINANCE OFFICERS ASSOCIATION Gm,e n nent Finance Officers Association WINNERS Gm-emment Finance Officers Association Certificate of Award for Distinguished Achievement Outstanding Budget Presentation for Excellence Achievement in in Financial Popular Annual Award Reporting Financial Reporting FRESEKrEDTO Presented to pmsenreato City of Evanston Illinois City of Evanston City of Evanston Iilinois IninoiS For cLe Fiscal Ye Beg vu ue January 01, 2025 For its Annual Comprehensive Financial Report For its Annual Financial Report For the Fiscal Year Ended For the Fiscal Year Ended n�QQ (� December 31, 2023 December 31, 2023 (OL(,u,�0�0..�w P /�y�y ?w«C Ez... ti. a Director C�iP rl. - Ai.u: Executi,-e DuectodCEO Execub- Director/CEO 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, 2023. To be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized Annual Comprehensive Financial Report (ACFR). 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. The City has submitted its 2024 ACFR to determine its eligibility and believes it will continue to meet the Certificate of Achievement Program's requirements. In addition, the City received the GFOA's Award for Outstanding Achievement in Popular Annual Financial Reporting to the City for its PAFR for the fiscal year ended December 31, 2023. To be awarded an Outstanding Achievement in Popular Annual Financial Award, the government's published PAFR was judged to be easily understandable to the general public and other parties within a background in public finance. This was the first year the City earned this award, and having received the Certificate of Achievement for Excellence in Financial Reporting as well as the Award for Distinguished Budget Presentation for the 2024 fiscal year, the City of Evanston was recognized as a GFAO Triple Crown Winner. The City also received the GFOA's Award for Distinguished Budget Presentation for its annual 2025 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 receiving this GFOA budget award for many years. -mism— �• 7• } • •� r� e~� sr...• .ar �...timob ■.�. .r Pew OWN"" "S �... go.. orr.� ..... I�r .+.+•q • R w+. •w.r •�... Marr sRror * r �.. •-• • ...« low Rom• ,.,.. - .o.RR. ,.. •W.6., •r• .... r. •ftdft ...s or IeiR�r � �, rR•. hi ..r left* .10 NOW* M V , Evanston, IL 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 77,000 is diverse by race, religion, age, education, economics, and occupation. With 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. Sources: 2023 US Census and City Economic Development Division Median Household Income $95,766 Median Property Value $472,300 Unemployment Rate 6.3% Largest Employers • Northwestern University • Northshore University Health System • PT Solutions Holdings • Evanston School District 65 • KPFF, Inc. City Festivals, Events, and Concerts • Umbrella Arts Festival • Evanston Rides! • Starlight Concert and Movie Nights • Evanston Arts and Big Fork Festival • Evanston Folk Festival 1st Ward Clare Kelly Email: ckelly@cityofevanston.org 4th Ward Jonathan Nieuwsma Email: jnieuwsma@cityofevanston.org Mayor: Daniel Biss Email: dbiss@cityofevanston.org CITY COUNCIL MEMBERS 2nd Ward Krissie Harris Email: kharris@cityofevanston.org 5th Ward Bobby Burns Email: bburns@cityofevanston.org 3rd Ward Melissa A. Wynne Email: mwynne@cityofevanston.org 6th Ward Thomas M. Suffredin Email: tsufredin@cityofevanston.org 7th Ward 8th Ward 9th Ward Eleanor Revelle Devon Reid Juan Geracaris Email: erevelle@cityofevanston.org Email: dreid@cityofevanston.org Email: jeracaris@cityofevanston.org FINANCIAL HIGHLIGHTS The City of Evanston's financial report for 2024 shows strong fiscal health. The City's combined net position increased increased by $10.3 million in 2024, from $296.7 million to $307.1 million. The below Statement of Net Position reflects Evanston's financial position as of December 31, 2024. Current and Other Assets Capital Assets Total Assets Deferred Outflows Total Assets & Deferred Outflows Long -Term Liabilities Other Liabilities Total Liabilities Deferred Inflows Total Liabilities and Deferred Inflows Net Investment in Capital Assets Restricted Unrestricted (Deficit) Restatement Total Net Position Statement of Net Position Governmental Activities Business -Type Activities Total Primary Government 2024 2023 2024 2023 2024 2023 $ 191,580,235 $ 194,740,275 $ 45,968,514 $ 29,066,672 $ 237,548,749 $ 223,806,947 244,067,697 231,696,070 407,812,877 390,457,572 651,880,574 622,153,642 435,647,932 426,436,345 453,781,391 419,524,244 889,429,323 845,960,589 60,918,009 45,910,708 7,711,460 8,438,372 68.629.469 54,349,080 496,565,941 472,347,053 461.492.851 427,962,616 958,058,792 900.309.669 389,745,932 390,982,159 117,021,646 95,475,109 506,767,578 486,457,268 55,719,321 51,110,301 13,808,830 3,535,247 69,528,151 54,645,548 445,465,253 442,092,460 130,830,476 99,010,356 576,295,729 541,102,816 68,606,786 55,735,055 6,035,536 6,693,534 74,642,322 62,428,589 514,072,039 497,827,515 136.866.012 105,703,890 650,938,051 603,531,405 100,702,714 93,847,182 316,807,501 302,774,179 417,510,215 396,621,361 30,879,155 25,274,487 270,955 - 31,150,110 25,274,487 (149,087,967) (144,602,131) 7,548,383 19,484,547 (141,539,584) (125,117,584) S (17,506,098) $ (25,480,462) $ 324,626,839 $ 322,258,726 $ 307,120,741 $ 296,778,264 • Assets - Resources owned and controlled by the City that are expected to benefit future operations. • Deferred Outflows - The consumption of net assets applicable to future reporting periods. • Liabilities - Debt or expense obligations that the City must pay. • Deferred Inflows - The acquisition of net assets applicable to future reporting periods. • Net Investment in Capital Assets - The book value of capital assets less any long-term debt outstanding issued to construct capital assets. • Net Position - Represents the City's net worth (Net Position = Assets + Deferred Outflows - Liabilities -Deferred Inflows) What is 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 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). Proprietary/Enterprise Funds An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery -direct, indirect, and capital costs —are identified. Fiduciary Funds Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private- purpose trust funds, and agency funds. Fund Structure The City's Budget is divided into 40 funds and organized by departments. Funds are the largest financial unit of the City's budget. Departments are functional units of government, and lay across the City's funds. The funds are categorized into different types, as shown in the table below. General Funds 100 General Fund Special Revenue Funds 170 American Rescue Plan 176 Human Services Fund 175 General Assistance Fund Debt Service Funds 320 Debt Service Fund 177 Reparations Fund 330 Howard -Ridge TIF Fund 178 Sustainability Fund 335 West Evanston TIF Fund 180 Good Neighbor Fund 340 Dempster -Dodge TIF Fund 200 Motor Fuel Tax Fund 345 Chicago -Main TIF Fund 205 Emergency Telephone (E911) Fund 365 Five Fifths TIF Fund 215 CDBG Fund 350 Special Service Area (SSA) #6 220 CDBG Loan Fund 355 Special Service Area (SSA) #7 235 Neighborhood Improvement 360 Special Service Area (SSA) #8 240 Home Fund 210 Special Service Area (SSA) #9 250 Afforable Housing Fund Capital Project Funds 415 Capital Improvements Fund Internal Service Funds 600 Fleet Services Fund 416 Crown Contruction Fund 601 Equipment Replacement Fund 417 Crown Community CTR Maintenance 605 Insurance Fund 420 Special Assessment Fund Pension Trust Funds 705 Police Pension Fund Enterprise Funds 505 Parking System Fund 700 Fire Pension Fund 510 Water Fund Component Unit Funds 185 Library Fund 515 Sewer Fund 186 Library Debt Service Fund 520 Solid Waste Fund 187 Library Capital Improvement FY 2024 Governmental Activity Revenue For the fiscal year ended December 31, 2024, the City of Evanston's governmental activity generated revenues from various sources to support public services and operations. Here's a breakdown of the key revenue sources: Property Taxes: The City's largest source of revenue, property taxes are vital for funding essential services like public safety, education, and infrastructure. Other Revenue: City revenues including capital and operating grants, fines, and interest earnings. Sales Taxes: Taxes imposed on the purchase of tangible personal property at the point of sale. Evanston receives both a state and home rule sales tax. Income Taxes: State tax levied upon all income received by individuals, trusts and estates. The City receives these on a per capita basis from the State of Charges for Services: Fees collected for specific Illinois. services provided by the city, such as utilities, parking, and recreation programs. Utility Taxes: Taxes levied upon the gross receipts of electricity and gas utility sales. Governmental Activity Revenues $70 C $60 $50 '$40 $30 $20 • $100 Property Charges for Sales Taxes Income Taxes Utility Taxes Other Taxes Services Revenue ■ FY24 Amount ■ FY23 Amount FY22 Amount Revenue Source FY24 Amount Property Taxes $54.019.576 Charges for Services $41.549.567 Sales Taxes S24.771.263 Income Taxes S13.446.239 Utility Taxes S5.850.776 Other Revenue $57.489.973 TOTAL $197.127.394 FY23 Amount $54.425.981 $29.232.736 $23.725,230 $12.558.980 S6.176.206 S49.265.034 $175.384.167 FY22 Amount $52.498.104 S32.625.387 S23.443.235 $12.826.057 S6.878.514 $51.384,895 $179.656,192 FY 2024 Governmental Activity Expenditures For the fiscal year ended December 31, 2024, the City of Evanston's governmental activity incurred costs across several key areas to provide public services and conduct daily operations. Public Safety: The largest portion of the budget, this expense reflects the City's focus on safety and law enforcement. Public Works: Funds allocated for maintaining and improving the City's infrastructure and public spaces. Housing & Development (H&D): Expenses related to housing initiatives and community development projects. Recreational & Cultural Opportunities: Expenses related to programming from the Evanston Parks & Recreation department as well as other cultural and General Management: Administrative and support enrichment programs. functions necessary for the efficient operation of the City's government. Health & Human Resources (HHR): Public health services and human resource management. Governmental Activity Expenditures $100 U) C $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Public Safety Public Works General H&D Rec & Cultural HHR Management Opps ■ FY24 Amount ■ FY23 Amount FY22 Amount Expenditure Source FY24 Amount FY23 Amount FY22 Amount Public Safety S93.152.007 $79.009.306 $70.097.181 Public Works S39.450.399 $33.151.860 S25.873.250 General Management S29.548.742 $29.867,575 $22.825,409 H&D S13.634.282 $15,346,710 $10.317.825 Rec & Cultural Opps S10.748.433 $11.929.994 $11.098.493 HHR S6.977.088 $6.095.290 S3.158.454 TOTAL $193.510,951 $175.400.735 $143,370,612 FY 2024 Business -Type Activities The City's Business -Type Activities refer to services the City provides and for which the City charges customers a fee. Evanston has 4 Enterprise Funds that fall under this category: Water Fund: To account for all activity related to providing water to Evanston residents, the Villages of Skokie and Lincolnwood, the Northwest Water Commission and the 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, debt service, and billing/collection. Parking Fund: To account for all City -owned parking facilities/garages, lots, and metered spaces. All activities are accounted for including administration, operations, financing, and revenue collection. Enterprise Fund Revenue FY24 FY23 FY22 Charges for Services $51,272,632 $48,087,216 $46,776,641 Capital Grants and contributions $3,210,809 $0 $0 Property Taxes $1,332,500 $1,332,500 $1,332,500 Investment Income $826,584 $763,849 -$92 Other Revenue $133,582 $0 $0 TOTAL $56,776,107 $50,183,565 $48,109,049 FY24 FY23 FY22 Enterprise Fund Expenditures 0% 20% 40% 60% 80% 100% ■ Water ■ Motor Vehicle Parking System ■ Sewer ■ Solid Waste 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. Sewer Fund: To account for all activity related to providing sewer service to City residents and businesses. Activities necessary to provide such service include, but are not limited to: administration, operations, financing, capital improvements/maintenance, and billing/collection. FY24 FY23 FY22 Enterprise Fund Revenues 0% 20% 40% 60% 80% 100% ■ Charges for Services ■ Capital Grants and contributions ■ Property Taxes ■ Investment Income Other Revenue Enterprise Expenditures FY24 FY23 FY22 Water $22,299,358 $17,482,399 $14,562,608 Motor Vehicle Parking System $10,373,890 $9,916,592 $8,882,305 Sewer $6,755,584 $6,942,639 $6,385,682 Solid Waste $6,294,948 $6,191,417 $5,148,518 TOTAL $45,723,780 $40,533,047 $34,979,113 Long -Term Debt The City issues general obligation bonds for capital improvement projects. Bonds issued for general city projects are repaid by property taxes. This is the City's unabated debt. Some bonds for certain projects may be supported by other revenue sources, including water and sewer fees, special assessment, tax increment financing (TIF) funds, or outside donations. This is the City's abated debt. Excluding the library, as of December 31, 2024, the City had outstanding total general obligation bonded debt of $179,907,241. Of this, $44,131,319 was for business -type activities to be paid for by the City's Water, Solid Waste and Sewer Funds (abated). An additional $7,610,289 is abated by special assessments, TIFs and other funding sources, leaving $128,165,633 in unabated general obligation bonded debt. The City's general obligation debt service principal payments for 2024 totaled $11,811,608. Investment Grade I Unabated GO Debt Payment Schedule 2024-2043 (Excludes Library Debt) N $200 o $180 $160 $140 $120 $100 $80 $60 $20 I' 1 ' ■ ■ ■Cumulative Principal ■Cumulative Interest Moody's Standard & Poor's Fitch City Credit Rating Aaa AAA AAA The rating agencies Moody's, Standard & Poor's, and Aa1 AA+ 4 M2 AA Fitch routinely evaluate the creditworthiness of Aa3 AA- AA- municipalities like Evanston. These evaluations provide Al A+ A+ an assessment of a community's ability to meet its A2 A A A3 A- A- financial obligations and influence the interest rate it Baal BBB+ BBB+ may receive on bond issuances. Ratings range from Baal BBB BBB high triple A (strongest) to low C or D Qunk). Baa3 BBB- BBB- Bal BB+ BB+ Bat BB BB The City's most recent general obligation bonds issued Ba3 BB- BB- in 2024 received strong investment grades B1 B+ B+ B2 B B from all three agencies. B3 B- B- Caal CCC+ CCC+ Evanston 2024 GO Bond Ratings Caa2 CCC CCC Caa3 CCC_ CCC_ Moody's: Aa2 Ca cc cc Standard & Poor's: AA C C C Fitch: AA+ D D FY 2024 Tax Summary The largest tax revenues in Evanston come from property taxes, sales and home rule taxes, and per capita state income taxes. The City also collects a series of other taxes, including utility taxes, Personal Property Replacement Taxes (PPRT), and Real Estate Transfer Taxes. Tax Revenues FY24 FY23 FY22 Property Tax $54.019.576 Sales and Home Rule Tax $24.771.263 Income Tax 513.446.239 Utility Tax S5.850.776 Personal Property Replacement Taxes $2.457.303 Liquor Tax $3,217,898 Real Estate Transfer Tax $4,083,708 Parking Tax $3.093.968 Other Taxes $11,209,752 Total $122,150,483 S54.425.981 S23.725.230 $12.558.980 $6.176,206 $4.087,124 $3,772.043 $3,310.770 $2,952.554 510,544.622 $121,553,510 S52.498.104 S23.443.235 $12.826.057 $6,878.514 S5.516.675 $3.291.166 S5.496.306 $2.952.826 S9.856.593 $122,759.476 FY 2024 Property Tax Summary The largest tax revenue in Evanston comes from property taxes. Property taxes paid by Evanston residents go to multiple taxing bodies. For every dollar of property tax paid by a resident of Evanston, 17 cents goes to the City, and an additional 3 cents goes to the Evanston Public Library. FY24 Governmental Fund Property Tax Revenue $54.019.576 Solid Waste Property Tax Revenue $1,332.500 Library Property Tax Revenue $8,835.845 17% City of Evanston FY23 S54.425.981 S1.332.500 S8.253.648 r 41 % School District 65 FY22 S52.498.104 S1.332.500 S7.855.001 13% Cook County and FOther Taxing Districts 'ME, UNITED siwrgs �F.1��1:ItI(Aj' -� G 48282563 G zle �. T i i 8282563 G ~ ` "' 0 10 3% Evanston Public Library 26% School District 202 ETHS Infrastructure and Capital Investments in 2024 In 2024, the City's adopted budget included a Capital Improvement Plan (CIP) of $98.1 million to invest in City Infrastructure and Facilities. Major projects include: . Water Intake Project - The Water Filtration Plant is served by three raw water intakes extending into Lake Michigan. Each is comprised of an intake structure and pipeline. It is beyond its useful life, is performing under capacity, and is in need of replacement. In 2023, the five year project to replace the intake began. Ecology Center Renovations - The Ecology Center is home to a nature classroom with live animal exhibits, nature -based educational programming, and a multi -purpose room for event rentals. For the 501h anniversary of its founding, the City made much needed renovations to modernize the building, preparing it to serve the community for the next 50 years. Capital Investment Revenues and Expenditures in 2025 In 2025, the City's CIP has a budget of $84,563,865. FY 2025 CIP Revenues Other 12": TI F 2° Grants 6% Waterand Sewer Fees 7% L FY 2025 CIP Expenditures 215-CDBG Fund 187- Library Fund 1 % 2% 505 - Parking Fund 3% 515- Sewer Fun 3% 200- Motor Fuel Bonds Tax Fund 48% 5% 415- Capital Improvements Fun 31% Other 5% 510- Water Fund 50'' o CIP Expenditures FY25 Amount CIP Revenues FY25 Amount 510- Water Fund $41,970,905 Bonds $40,486,000 415- Capital Improvements Fund $25,947,000 Loans $21,514,085 200- Motor Fuel Tax Fund $4,469,650 Water and Sewer Fees $5,805,820 515- Sewer Fund $2,740,000 Grants $,600 505 - Parking Fund $2,600,000 1,310 $1,, 187- Library Fund $1,900,000 Ot Other $10,154,650 215- CDBG Fund $1,160,000 TOTAL $84,563,865 Other $3,776,310 TOTAL $84,563,865 City or Evanston The Popular Annual Financial Report (PAFR) provides a simplified and accessible overview of the financial activities and health of the City of Evanston for the fiscal year ended December 31, 2024. It highlights key financial information, major projects, and essential services that impact the community. The PAFR aims to enhance transparency and foster greater understanding of the City's financial operations among residents. Contact Information City Manager's Office: Address: 909 Davis Street, Evanston, IL 60201 Phone: (847) 448-4311 Email: citymanagersoffice@cityofevanston.org www.citvofevanston.org Q (cDCitvofEvanston Uftbbe @CityofEvanston