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Home My WebLink About2025 Annual Comprehensive Financial Report City of Evanston, Illinois _________________________________________________________________ Annual Comprehensive Financial Report For the Year Ended December 31, 2025 CITY OF EVANSTON, ILLINOIS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2025 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-xii 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 .... 14-15 Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities .................................................. 16 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 .......................................................................... 17-18 Statement of Revenues, Expenses, and Changes in Net Position .............. 19 Statement of Cash Flows ........................................................................... 20-21 Fiduciary Funds Statement of Fiduciary Net Position .......................................................... 22 Statement of Changes in Fiduciary Net Position ....................................... 23 Notes to Financial Statements ............................................................................. 24-95 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund .................................................................................................. 96 Schedule of Changes in the Employer’s Total OPEB Liability and Related Ratios Other Postemployment Benefits Plan ................................................................. 97 Schedule of Employer Contribution Illinois Municipal Retirement Fund ............................................................... 98 Police Pension Fund ....................................................................................... 99 Firefighters' Pension Fund .............................................................................. 100 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund ................................................................ 101-102 Police Pension Fund ....................................................................................... 103-104 Firefighters’ Pension Fund ............................................................................. 105-106 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 ....................................................................................... 107 Firefighters’ Pension Fund ............................................................................. 108 Notes to Required Supplementary Information .................................................. 109 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual ................................................... 110-112 Schedule of Expenditures - Budget and Actual .............................................. 113 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Improvements Fund ........................................................................... 114 General Obligation Debt Service Fund ......................................................... 115 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................... 116-119 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................................................................... 120-123 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund ...................................................................................... 124 Emergency Telephone System Fund .............................................................. 125 Foreign Fire Insurance Fund .......................................................................... 126 Affordable Housing Fund ............................................................................... 127 HOME Fund ................................................................................................... 128 Community Development Block Grant Fund ................................................. 129 Schedule of Expenditures - Budget and Actual (Budgetary Basis) Community Development Block Grant Fund ................................................. 130 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Loan Fund ............................................................ 131 Special Service District No. 9 Fund ............................................................... 132 Special Service District No. 10 Fund ............................................................. 133 CITY OF EVANSTON, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS (Continued) Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Continued) ARPA Fund .................................................................................................... 134 Reparations Fund ............................................................................................ 135 Sustainability Fund ......................................................................................... 136 Good Neighbor Fund ...................................................................................... 137 General Assistance Fund ................................................................................ 138 Human Services Fund ..................................................................................... 139 Crown Construction Fund .............................................................................. 140 Crown Maintenance Fund .............................................................................. 141 Special Assessment Capital Projects Fund ..................................................... 142 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Debt Service Funds ......................................................................................... 143-146 ENTERPRISE FUNDS Water Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ........................................................................................ 147 Schedule of Operating Revenues - Budget and Actual Operation and Maintenance Account ........................................................... 148 INTERNAL SERVICE FUNDS Combining Statement of Net Position ................................................................. 149 Combining Statement of Revenues, Expenses, and Changes in Net Position .................................................................................... 150 Combining Statement of Cash Flows .................................................................. 151-152 COMPONENT UNIT - PUBLIC LIBRARY Governmental Funds Statement of Net Position and Combining Balance Sheet ............................. 153-154 Statement of Activities and Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 155-156 CITY OF EVANSTON, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) COMPONENT UNIT - PUBLIC LIBRARY (Continued) Library Operating Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual ............................................................... 157 STATISTICAL SECTION Financial Trends Net Position by Component ..................................................................................... 158-159 Changes in Net Position ........................................................................................... 160-163 Fund Balances of Governmental Funds ................................................................... 164-165 Changes in Fund Balances of Governmental Funds ................................................ 166-167 Revenue Capacity Equalized Assessed Value and Actual Value of Taxable Property.......................... 168 Principal Property Taxpayers ................................................................................... 169 Property Tax Levies and Collections ....................................................................... 170 Debt Capacity Ratio of General Bonded Debt Outstanding ............................................................ 171 Ratio of Outstanding Debt by Type ......................................................................... 172 Direct and Overlapping Governmental Activities Debt ........................................... 173 Legal Debt Margin ................................................................................................... 174 Demographic and Economic Information Principal Employers ................................................................................................. 175 Demographic and Economic Statistics..................................................................... 176 Operating Information Full-Time Equivalent City Government Employees by Function ........................... 177 Property Tax Rates per $100 - Direct and Overlapping Governments .................... 178 Water Sold by Type of Customer (in 100 cubic feet) .............................................. 179 Water Sold by Major Customers .............................................................................. 180 Operating Indicators by Function/Program .............................................................. 181 Capital Assets Statistics by Function ....................................................................... 182 INTRODUCTORY SECTION CITY OF EVANSTON Principal Officials December 31, 2025 ______________________________________________________________________ LEGISLATIVE Daniel Biss, Mayor 1st Ward 2nd Ward 3rd Ward 4th Ward 5th Ward 6th Ward 7th Ward 8th Ward Clare Kelly Krissie Harris Shawn Iles Jonathan Nieuwsma Bobby Burns Thomas M. Suffredin Parielle Davis Matt Rodgers Juan Geracaris 9th Ward Stephanie Mendoza, City Clerk EXECUTIVE Luke Stowe, City Manager Hitesh Desai, CFO / Treasurer ADMINISTRATIVE Interim Administrative Services Director Corporation Counsel Michael Rivera Interim Chief Information Officer Dmitry Shub Health and Human Services Director Ikenga Ogbo Community Development Director Sarah Flax Parks & Recreation Director Audrey Thompson Alexandra Ruggie Public Works Agency Director Edgar Cano Police Chief Schenita Stewart Fire Chief Paul Polep Executive Director Library Yolande Wilburn - i - - ii - 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, 2024 Executive Director/CEO - iii - City Manager’s Office 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448.8064 www.cityofevanston.org - iv - June 24, 2026 The Honorable Mayor Daniel Biss, Members of the City Council, and Citizens of the 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, 2025, 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, 2025, to December 31, 2025. 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 fr amework 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 shoul d 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 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - v - structure and compliance with applicable laws and regulations, is to be presented in a separate single audit report. 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 Assi stance 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 a re appointed by the Mayor. The City’s financial statements have been audited by Sikich CPA LLC, 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, 2025, 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 signific ant 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, 2025, 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 an d 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 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 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 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 Un iversity 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. 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - vii - Budget Process: The City of Evanston operates under the Illinois Budget Act, adopting a budget through an ordinance that includes all funds appropriated by the City. 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. The City’s budget team started the budget process for Fiscal Year (FY) 202 6 in February 2025, meeting individually with City Council members and the Mayor about preliminary budgetary ideas and priorities, followed by meetings with departments in May 2025. In late summer 2025, staff met with the City Manager’s Office and each department to discuss their individual operating budgets. The City Manager submitted to the City Council a proposed operating budget in October 2025. On November 24, 2025, the Council adopted Ordinance 56-O-25 approving the FY 2026 budget. 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. The accounts of the City are divided into separate self-balancing funds comprising its assets, liabilities, fund equity, revenues, and expenditures, as appropriat e. 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. 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). 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. 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - viii - MAJOR INITIATIVES – FISCAL YEAR 2026 Following are annual goals and major initiatives by department as set in the FY 202 6 adopted budget. The City Manager’s Office and its divisions will: (1) Complete the FY26 Annual Comprehensive Report. (2) Work with the Finance and Budget Committee and City Council to address fully funding public safety pensions and structural deficits. (3) Update the Arts & Culture webpage and implement a social media strategy to reach new artists. (4) Divvy station expansion and roll out of the Divvy for Everyone access program. (5) Launch retail incubator and related business support services. (6) Implement Evanston Thrives Recommendations. (7) Continued development of community benchmarking efforts around property taxes, pensions, and debt. The Law Department will: (1) 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. (2) 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. (3) Identify opportunities for training and education for staff to increase knowledge surrounding real estate and land use. (4) Assist all client departments w ith review of internal City policies. (5) Continue to handle 80% or more of the City’s litigation in-house. The Administrative Services Department will: (1) Continue to expand on its use of the CMMS program in order to better plan maintenance, replacements and improvements at our City Facilities in a manner that is proactive rather than reactive. (2) Evaluate revenues to recommend increases to monthly lot permit parking as well as residential parking districts, areas that have not had a fee increase in many years. (3) Improve cybersecurity posture in an ongoing effort to ensure the City assets are kept safe, and continue to work on the City’s website ensuring accessibility. (4) Share the information obtained through the Fleet Electrification and Rightsizing Study to develop and implement in a phased manner and pace a strategy that is financially responsible. (5) Deploy a web based public portal to promote transparency, efficiency and reduce FOIA requests and plan to migrate the City’s contract database to the public portal along with other department records. The Community Development Department will: (1) Continue to improve permit and inspection services with new staff. (2) Design and implement the $7M PRO Housing Grant. (3) Continue implementing programs and projects funded by the American Rescue Plan Act (ARPA), maintain compliance with requirements, and report to the U.S. Treasury. (4) Continue to implement strategies to meet the City Council’s affordable housing goals using funding from NU and leveraging additional resources. (5) Monitor and inspect vacant and dangerous buildings to mitigate impact on neighborhoods. (6) Enhance communication with housing providers and property managers. 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - ix - The Police Department will: (1) Fill vacant positions with competent, qualified personnel as quickly as possible. (2) Implement Axon’s Taser 10 System. (3) Research and development of a master plan for the replacement or complete renovation of the Evanston Police Department Building in conjunction with City Departments and stakeholders. The Fire Department will: (1) Replace turnout gear on its ten-year replacement schedule. (2) Update software and technology to meet the needs of the department. (3) Implement new cardiac monitors on all response vehicles. (4) Finalize the new Operational Guidelines Manual. (5) Plan/budget for future vehicle replacements and facility upgrades. The Health and Human Services Department will: (1) Continue to prioritize the response to MDRO’s and other disease outbreaks in the community including schools, facilities housing high-risk populations such as in our long-term care facilities and congregate settings. (2) Acquire grants to support operations and activities of the Department. (3) Improve digital recordkeeping for the Childhood Lead Poisoning Prevention program. (4) Establish a community health hub which would serve as a safe and trustworthy community space by increasing hyperlocal access to health resources for community members who most need them. (5) Provide resources and assistance for eligible households who have been severely impacted by crime and violence. The Public Works Agency will: (1) Complete the first stage of the Beck Park Expansion. (2) Move replacement of the Lincoln Street bridge into the design phase. (3) Conclude the ongoing construction of the new raw water intake project. (4) Begin a 10-year cycle of street sign replacements, targeting approximately 3000 signs. (5) Continue Implementation of the Sidewalk Improvement and Sidewalk Gap Infill Programs. (6) Continue the incorporation of CARP goals into City infrastructure projects. (7) Increase tree planting to 600 trees for next fiscal year. (8) Replace approximately 500 light fixtures in street light poles with new LED fixtures in conformance with the Street Light Master Plan. The Parks, Recreation and Community Services will: (1) Establish metrics for evaluating participant satisfaction and program success. (2) Create a department-wide safety plan for all recreation spaces. (3) Establish a formal partnership with District 202 and Northwestern University for a shared use of space . (4) Expand the alternative response program to include additional call types. (5) Implement action plans established by the Parks and Green Strategic Plan. (6) Finalize and implement commercial use fitness permit policies and procedures. 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. 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - x - FACTORS AFFECTING FINANCIAL CONDITION The following are factors which could give broader context to the financial information contained in this Annual Consolidated Financial Report. Local Economy: Over the past five years, Evanston’s financial position has been shaped by a combination of strong local economic activity, inflation ‑driven revenue growth, and significant permit revenues tied to major Northwestern University construction projects. These factors have helped the City maintain service levels, delay new bond issuances during a challenging interest‑rate environment, and defer major increases to the City’s portion of the property tax levy. Evanston’s diverse economic base continues to be a stabilizing force. As home to Northwestern University and nine distinct business districts, the City benefits from a steady flow of consumer activity, institutional investment, and visitor spending. In 2025, General Fund revenues continued to perform well. This was driven largely by $6.2 million in one‑time, unbudgeted permit revenues from Northwestern University’s Kellogg Educational Center and Donald P. Jacobs Center projects, as well as steady growth in several key economy‑based revenues. Sales Taxes, Home Rule Sales Taxes, and other economy ‑based revenues rebounded strongly from pandemic lows and have reached year over year highs including new record highs in 2025. While inflation contributed to this growth, it also reflected genuine economic recovery and sustained demand across local businesses. Sales Taxes, Home Rule Sales Taxes, Use Taxes and Income Taxes yielded an improvement in year over year returns of a combined 5.4% Additionally, the City’s continuation of the 1% Grocery Tax further supports revenue stability heading into FY 2026. At the same time, several revenues that surged immediately after the pandemic have continued to normalize. Personal Property Replacement Taxes (PPRT), which peaked at $5.6 million in 2022, declined to $2.1 million in 2025 due to changes in state allocation formulas, with these lower levels expected to persist into FY 2026. Inflation remains a defining factor in the City’s financial environment. While month‑over‑month CPI growth has slowed, the Chicago‑Naperville‑Elgin CPI in August 2025 remained 24% above August 2020 levels—well above the 10‑year average. This sustained inflation has increased the cost of labor, supplies, and services. Since 2021, salaries and wages have grown by 36%, driven in part by the 2023 collective bargaining agreements that aligned compensation with comparable communities. These increases have strengthened the City’s ability to attract and retain talent but have also contributed to rising operating costs across multiple funds. 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - xi - Inflation has also significantly affected the cost of capital projects. The cost of construction materials has more than doubled over the past 20 years, with much of the increase occurring in the last five. Historically, the City issued approximately $10 m illion in new General Obligation (GO) bonds annually, aligned with the retirement of existing debt. Today, maintaining the same level of infrastructure investment requires more than $20 million in annual bond‑funded capital spending. Since 2021, capital spending has nearly doubled, reflecting both inflationary pressures and growing community expectations for high‑quality facilities, water infrastructure, and public spaces. Major institutional investments continue to shape the local economy. Construction on Northwestern University’s Ryan Field project began in 2024 and is expected to be completed for the 2026–2027 football season. The $800 million project is anticipated to generate increased local tax revenues through football games and up to six concerts annually. The accompanying Community Benefits Agreement (CBA) provides $3 million annually to the City for 15 years, including dedicated support for affordable housing and sustainability initiatives. The FY 2026 budget reflects the City’s effort to respond to these economic conditions while maintaining long‑term financial stability. After six consecutive years of holding the City’s portion of the property tax levy flat, the adopted budget included a $3.5 million increase to support expanded human services and Parks Department programming. This adjustment marks a shift toward addressing structural imbalances that have grown as inflation and labor costs have outpaced flat levy revenues. A major structural change in the FY 2026 budget was also the creation of a dedicated Parks and Recreation Fund. This new fund separates parks and recreation operations from the General Fund, improving transparency and aligning Evanston with peer communities that track these services independently. The fund is supported by user fees, a General Fund transfer, and a dedicated property tax levy, providing a clearer picture of the resources required to maintain and improve the City’s parks, beaches, and recreation facilities. Despite the levy increase, the FY 2026 budget continues to rely on reserves to maintain service levels and meet pension obligations. Approximately $12.1 million in General Fund reserves will be used to balance the budget, reflecting the ongoing need for long ‑term solutions to rising personnel and pension costs. The FY 2026 budget also reflects continued investment in capital infrastructure. With construction costs elevated and community expectations increasing, the City’s capital plan includes more than $90 million in improvements across facilities, transportation, water, sewer, and public spaces. Strategic timing of bond issuances, use of reimbursement resolutions, and pursuit of outside funding sources remain central to managing these costs responsibly. 909 Davis Street Evanston, Illinois 60201-2798 T 847.866.2936 TTY 847.448 8064 www.cityofevanston.org - xii - Looking ahead, Evanston’s local economy remains a source of strength, supported by a diverse tax base, major institutional investments, and steady consumer activity. At the same time, the City must continue to navigate rising labor costs, increased pension obligations, and higher capital costs. With thoughtful planning, strategic use of reserves, and continued focus on operational efficiency, Evanston is well ‑positioned to manage these challenges while supporting the services and infrastructure that residents expect. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report and popular annual financial report for the fiscal year ended December 31, 2024. To be awarded these Certificate of Achievements, the government published easily readable and efficiently organized financial reports. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive and popular financial reports continue to meet the Certificate of Achievement Program's requirements, and we are submitting them 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 2026 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 the accounting 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. Respectfully submitted, _______________________________ _______________________________ Luke Stowe Hitesh Desai City Manager Chief Financial Officer/Treasurer FINANCIAL SECTION 1415 West Diehl Road, Suite 400 Naperville, IL 60563 +1 (630) 566-8400 sikich.com Certified Public Accountants & Advisors Members of American Institute of Certified Public Accountants 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, 2025, 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 5, 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. 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 throughout 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, as 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 management ’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit 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 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 procedures 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 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 other 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 June 24, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards in considering the City’s internal control over financial reporting and compliance. Naperville, Illinois June 24, 2026 - 4 - 1415 West Diehl Road, Suite 400 Naperville, IL 60563 +1 (630) 566-8400 sikich.com Certified Public Accountants & Advisors Members of American Institute of Certified Public Accountants 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, the 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated June 24, 2026. The financial statements of the 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 - - 6 - 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 or significant deficiencies 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 wit h which could 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 June 24, 2026 - 6 - GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS - MD&A 1 - MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 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 decreased by $4,060,651 or 1.3% from the prior fiscal year. The governmental net position decreased by $5,481,965 or 31.3% from the prior period and the business-type activities net position increased by $1,421,314 or .44% from the prior period. B. The governmental activities revenue decreased by $7,924,036 or 4.0% from the prior period principally due to decrease in other taxes. The expenses increased by $9,580,012 or 4.9% principally due to an increase in general management and support expenses. C. The business-type activities revenue increased by $2,752,979 or 4.8% due to an increase in charges for services and investment income. The expenses increased by $3,978,352 or 8.7% from the prior period due to increases in water expenses. D. The total cost of all City programs increased by $13,558,364 or 5.6%. This increase was mainly attributable to increases in costs across all City programs. E. Total assets and deferred outflows of resources of the City decreased by $4,591,290; and total liabilities and deferred inflows of resources decreased by $530,639. 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 sho wn as a discretely presented component unit beginning in 2013. - MD&A 2 - REPORTING THE CITY AS A WHOLE Government-wide Financial Statements The City's annual report includes two government-wide financial statements. These statements provide both short-term and long-term information about the City's overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities (e.g., the City’s Fleet Services Fund). The first of these government-wide statements is the Statement of Net Position. This is the City-wide statement of financial position presenting information that includes all the City's assets , deferred outflows of resources, liabilities and deferred inflows of resources, 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 3 - 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 and major special revenue funds are included in the required supplementary section of this report. Budgetary comparison schedules for nonmajor special revenue funds, capital projects 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 governmental fund financial statements are presented on pages 11-16 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 17-21 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 22-23 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 24 of this report. - 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 95-108 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 109. Additional information on capital assets and long-term debt can be found on page 43-44 and 51-52, respectively. Financial Analysis of the City as a Whole The City's combined net position decreased by $4,060,651 from $307,120,741 as previously reported to $303,060,090. STATEMENT OF NET POSITION The City's total revenues decreased by $5,171,057 or 2.0%. The City's total expenses for all programs increased by $13,558,364 or 5.6%. Governmental activities revenue decreased by $7,924,036 while Business-type activity revenues increased by $2,752,979 in the current fiscal period mainly due to an increase in charges for services and investment income. Business-type activity expenses increased by $3,978,352, while Governmental activity expenses increased by $9,580,012 due to increased costs general management and support. The list of revenues and expenses can be found in the table below. 2025 2024 2025 2024 2025 2024 Current and Other Assets 174,347,768$ 191,580,235$ 39,718,590 45,968,514 214,066,358 237,548,749 Capital Assets 257,778,036 244,067,697 426,695,794 407,812,877 684,473,830 651,880,574 Total Assets 432,125,804 435,647,932 466,414,384 453,781,391 898,540,188 889,429,323 Deferred Outflows 48,575,749 60,918,009 6,351,565 7,711,460 54,927,314 68,629,469 Total Assets & Deferred Outflows 480,701,553 496,565,941 472,765,949 461,492,851 953,467,502 958,058,792 Long-Term Liabilities 340,266,984 389,745,932 116,844,093 117,021,646 457,111,077 506,767,578 Other Liabilities 63,706,285 55,719,321 24,646,977 13,808,830 88,353,262 69,528,151 Total Liabilities 403,973,269 445,465,253 141,491,070 130,830,476 545,464,339 576,295,729 Deferred Inflows 99,716,347 68,606,786 5,226,726 6,035,536 104,943,073 74,642,322 Total Liabilities and Deferred Inflows 503,689,616 514,072,039 146,717,796 136,866,012 650,407,412 650,938,051 Net Investment in Capital Assets 124,117,932 100,702,714 304,071,305 302,477,575 428,189,237 403,180,289 Restricted 25,845,631 30,879,155 - 270,955 25,845,631 31,150,110 Unrestricted (Deficit)(172,951,626) (149,087,967) 21,976,848 21,878,309 (150,974,778) (127,209,658) Restatement - - - - - - Total Net Position (22,988,063)$ (17,506,098)$ 326,048,153 324,626,839 303,060,090 307,120,741 Governmental Activities Business-Type Activities Total Primary Government - MD&A 5 - Governmental activities experienced a decrease of $5,481,965 and business type activities experienced an increase of $1,421,314 in net position balances. STATEMENT OF CHANGES IN NET POSITION 2025 2024 2025 2024 2025 2024 Revenue Program Revenues: Charges for services 38,744,056$ 41,549,567$ 54,900,704 51,272,632 93,644,760 92,822,199 Operating grants and - - 708,582 - 708,582 - contributions 10,341,443 7,932,150 10,341,443 7,932,150 Capital grants and - - - - contributions 4,418,383 2,718,027 3,210,809 4,418,383 5,928,836 General Revenues:- - - - Sales taxes 28,349,072 24,771,263 28,349,072 24,771,263 Property taxes 52,876,168 54,019,576 950,000 1,332,500 53,826,168 55,352,076 Utility taxes 6,458,716 5,850,776 6,458,716 5,850,776 Income taxes 14,145,983 13,446,239 14,145,983 13,446,239 Other 29,242,698 40,862,217 1,516,917 133,582 30,759,615 40,995,799 Investment income 4,626,840 5,977,580 1,452,883 826,584 6,079,723 6,804,164 Total Revenue 189,203,359 197,127,395 59,529,086 56,776,107 248,732,445 253,903,502 Expenses General management and support 37,229,633 29,548,742 37,229,633 29,548,742 Public safety 92,087,925 93,152,054 92,087,925 93,152,054 Public works 36,315,321 35,019,244 36,315,321 35,019,244 Health and human - - resources development 7,615,934 6,977,042 7,615,934 6,977,042 Recreation and cultural - - - - opportunities 11,720,418 10,748,433 11,720,418 10,748,433 Housing and economic - - - - development 13,789,906 13,634,282 13,789,906 13,634,282 Interest 4,331,827 4,431,155 4,331,827 4,431,155 Water - - 26,294,266 22,299,358 26,294,266 22,299,358 Sewer 6,940,832 6,755,584 6,940,832 6,755,584 Solid Waste 6,487,339 6,294,948 6,487,339 6,294,948 Motor vehicle parking 9,979,695 10,373,890 9,979,695 10,373,890 system - - - - - - Total Expense 203,090,964 193,510,952 49,702,132 45,723,780 252,793,096 239,234,732 Increase (decrease) in net position before transfers (13,887,605) 3,616,443 9,826,954 11,052,327 (4,060,651) 14,668,770 Transfers 8,405,640 7,987,538 (8,405,640) (7,987,538) - - Increase/(Decrease) in Net Position (5,481,965) 11,603,981 1,421,314 3,064,789 (4,060,651) 14,668,770 Net Position - Beginning (17,506,098) (25,480,462) 324,626,839 322,258,726 307,120,741 296,778,264 Change in accounting principle - (3,629,617) - (696,676) - (4,326,293) Net Position - Beginning (17,506,098) (29,110,079) 324,626,839 321,562,050 307,120,741 292,451,971 Net Position - Ending (22,988,063)$ (17,506,098)$ 326,048,153 324,626,839 303,060,090 307,120,741 Governmental Activities Business-Type Activities Total Primary Government - 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 $55,641,581 as of December 31, 2025, which includes $11,340,918 non-spendable, $26,008,138 restricted, $20,585,568 assigned and ($2,293,043) 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 stated on page 13 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 total General Fund balance on page 12 is $42,460,737 of which $14,611,787 is assigned and $11,340,918 is non-spendable. The total unassigned fund balance as of December 31, 2025, is $16,508,032 with actual revenues of $140,481,047 and expenditures of $156,742,704, before transfers. The Capital Improvement Fund has a fund balance deficit ($18,659,306) due to the City not issuing bonds in prior years but continuing to pay for Capital Improvement expenses. The fund balance reported a decrease of $10,568,781 with actual revenues of $4,384,934 and expenditures of $14,953,715, before transfers. The fund balance of the General Obligation Debt Service Fund had a decrease of $1,414,583 from $3,453,006 to $2,038,423 resulting primarily from transfers in from other funds. Combined Nonmajor Governmental Funds Combined nonmajor fund balances totaled $29,801,727, a decrease of $2,381,699 from prior period reported nonmajor fund balances of $32,183,426. ARPA was previously classified as a Major Governmental Fund but was considered nonmajor in 2025. 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 $1,421,314 in the net position. The Water Fund reported the highest increase in the amount of $2,623,296. The Solid Waste Fund added $722,570 to the net position during the year. The Sewer Fund reported an increase of $409,232, while Parking Fund reported a decrease of $2,333,784. Internal Service Funds The City's combined internal service fund’s net position increased by $918,011 from the net position balance of $19,325,737, as previously reported, to a net position of $20,243,748 at December 31, 2025. Of the total net position, $8,651,972 is unrestricted. - MD&A 7 - Capital Assets The City’s Capital Asset policy generally includes capitalizing assets or properties with $25,000 or more in value. The City's capital assets (net of depreciation) for governmental and business-type activities as of December 31, 2025, was $684,473,828. The governmental funds capital assets had a net increase of $13,710,339, while business type capital assets increased by $18,882,915. 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, 2025, the City had outstanding total general obligation bonded debt of $166,707,324 of which $125,029,802 was for governmental activities and $41,677,522 was for business type activities to be paid for by the City's Water, Solid Waste and Sewer Funds. The City's general obligation debt service principal payments for 2025 totaled $13,199,917. 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 General Obligation Bonds are currently rated as AA (stable outlook) by S&P. Local Economy: Over the past five years, Evanston’s financial position has been shaped by a combination of strong local economic activity, inflation‑driven revenue growth, and significant permit revenues tied to major Northwestern University construction projects. These factors have helped the City maintain service levels, delay new bond issuances during a challenging interest‑rate environment, and defer major increases to the City’s portion of the property tax levy. Evanston’s diverse economic base continues to be a stabilizing force. As home to Northwestern University and nine distinct business districts, the City benefits from a steady flow of consumer activity, institutional investment, and visitor spending. In 2025, General Fund revenues continued to perform well. This was driven largely by $6.2 million in one‑time, unbudgeted permit revenues from Northwestern University’s Kellogg Educational Center and Donald P. Jacobs Center projects, as well as steady growth in several key economy‑based revenues. Sales Taxes, Home Rule Sales Taxes, and other economy‑based revenues rebounded strongly from pandemic lows and have reached year over year highs including new record highs in 2025. While inflation contributed to this growth, it also reflected genuine economic recovery and sustained demand across local businesses. Sales Taxes, Home Rule Sales Taxes, Use Taxes and Income Taxes yielded an improvement in year over year returns of a combined 5.4% Additionally, the City’s continuation of the 1% Grocery Tax further supports revenue stability heading into FY 2026. At the same time, several revenues that surged immediately after the pandemic have continued to normalize. Personal Property Replacement Taxes (PPRT), which peaked at $5.6 million in 2022, declined to $2.1 million in 2025 due to changes in state allocation formulas, with these lower levels expected to persist into FY 2026. Inflation remains a defining factor in the City’s financial environment. While month‑over‑month CPI growth has slowed, the Chicago‑Naperville‑Elgin CPI in August 2025 remained 24% above August 2020 levels—well above the 10‑year average. This sustained inflation has increased the cost of labor, supplies, and services. Since 2021, salaries and wages have grown by 36%, driven in part by the 2023 collective bargaining agreements that aligned compensation with comparable communities. These increases have strengthened the City’s ability to attract and retain talent but have also contributed to rising operating costs across multiple funds. - MD&A 8 - Inflation has also significantly affected the cost of capital projects. The cost of construction materials has more than doubled over the past 20 years, with much of the increase occurring in the last five. Historically, the City issued approximately $10 million in new General Obligation (GO) bonds annually, aligned with the retirement of existing debt. Today, maintaining the same level of infrastructure investment requires more than $20 million in annual bond‑funded capital spending. Since 2021, capital sp ending has nearly doubled, reflecting both inflationary pressures and growing community expectations for high‑quality facilities, water infrastructure, and public spaces. Major institutional investments continue to shape the local economy. Construction on Northwestern University’s Ryan Field project began in 2024 and is expected to be completed for the 2026–2027 football season. The $800 million project is anticipated to generate increased local tax revenues through football games and up to six concerts annually. The accompanying Community Benefits Agreement (CBA) provides $3 million annually to the City for 15 years, including dedicated support for affordable housing and sustainability initiatives. The FY 2026 budget reflects the City’s effort to respond to these economic conditions while maintaining long‑term financial stability. After six consecutive years of holding the City’s portion of the property tax levy flat, the adopted budget included a $3.5 million increase to support expanded human services and Parks Department programming. This adjustment marks a shift toward addressing structural imbalances that have grown as inflation and labor costs have outpaced flat levy revenues. A major structural change in the FY 2026 budget was also the creation of a dedicated Parks and Recreation Fund. This new fund separates parks and recreation operations from the General Fund, improving transparency and aligning Evanston with peer communities that track these services independently. The fund is supported by user fees, a General Fund transfer, and a dedicated property tax levy, providing a clearer picture of the resources required to maintain and improve the City’s parks, beaches, and recreation facilities. Despite the levy increase, the FY 2026 budget continues to rely on reserves to maintain service levels and meet pension obligations. Approximately $12.1 million in General Fund reserves will be used to balance the budget, reflecting the ongoing need for long‑term solutions to rising personnel and pension costs. The FY 2026 budget also reflects continued investment in capital infrastructure. With construction costs elevated and community expectations increasing, the City’s capital plan includes more than $90 million in improvements across facilities, transportation, water, sewer, and public spaces. Strategic timing of bond issuances, use of reimbursement resolutions, and pursuit of outside funding sources remain central to managing these costs responsibly. Looking ahead, Evanston’s local economy remains a source of strength, supported by a diverse tax base, major institutional investments, and steady consumer activity. At the same time, the City must continue to navigate rising labor costs, increased pension obligations, and higher capital costs. With thoughtful planning, strategic use of reserves, and continued focus on operational efficiency, Evanston is well‑positioned to manage these challenges while supporting the services and infrastructure that residen ts expect. Contacting the City's Financial Management This financial report is designed to provide a general overview of the City's finances, comply with finance- related laws and regulations, and demonstrate the City's commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City Manager’s Office, Finance Division at the City of Evanston, 909 Davis St. Evanston, IL 60201, Telephone 847-448- 8082, or access the website at www.cityofevanston.org. BASIC FINANCIAL STATEMENTS Component Unit Governmental Business-Type Evanston Public Activities Activities Total Library ASSETS Cash and equivalents 23,848,410$ 6,096,908$ 29,945,318$ 6,071,469$ Investments 47,066,056 20,815,841 67,881,897 - Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 71,121,713 450,000 71,571,713 13,770,725 Utility taxes 653,768 - 653,768 - Accounts - 6,308,025 6,308,025 - Notes 75,000 - 75,000 - Loans 9,183,475 - 9,183,475 - Special assessments 837,977 - 837,977 - Leases 405,849 4,567,518 4,973,367 - Accrued interest 417 6,383 6,800 - Other 1,425,616 461,153 1,886,769 - Due from primary government - - - 2,779 Due from other governments 11,588,594 - 11,588,594 - Due from component unit 358,536 - 358,536 - Internal balances 82,582 (82,582) - - Inventories 1,939,473 1,095,344 3,034,817 - Prepaid items 5,760,302 - 5,760,302 - Capital assets Capital assets not being depreciated 51,357,656 54,317,967 105,675,623 311,380 Capital assets being depreciated, net 206,420,380 372,377,827 578,798,207 9,197,595 Total assets 432,125,804 466,414,384 898,540,188 29,353,948 DEFERRED OUTFLOWS OF RESOURCES Asset retirement obligations - 3,401,447 3,401,447 - Pension items - Police 18,892,993 - 18,892,993 - Pension items - Fire 14,128,007 - 14,128,007 - Pension items - IMRF 12,705,808 2,792,101 15,497,909 1,650,491 OPEB items 2,848,941 158,017 3,006,958 77,936 Total deferred outflows of resources 48,575,749 6,351,565 54,927,314 1,728,427 Total assets and deferred outflows of resources 480,701,553 472,765,949 953,467,502 31,082,375 Primary Government CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION December 31, 2025 (This statement is continued on the following page.) - 7 - Component Unit Governmental Business-Type Evanston Public Activities Activities Total Library LIABILITIES Vouchers payable 18,249,565$ 15,396,018$ 33,645,583$ 238,236$ Retainage payable - 1,770,588 1,770,588 - Deposits payable - - - - Accrued payroll 3,319,816 - 3,319,816 - Accrued interest 431,132 234,988 666,120 15,952 Due to other governments 1,170,021 - 1,170,021 - Due to primary government - - - 358,536 Due to component unit 2,779 - 2,779 - Due to fiduciary funds 8,173,277 - 8,173,277 - Unearned revenue 10,941,858 - 10,941,858 - Noncurrent liabilities Due within one year 21,417,837 7,245,383 28,663,220 719,319 Due in more than one year 340,266,984 116,844,093 457,111,077 5,679,818 Total liabilities 403,973,269 141,491,070 545,464,339 7,011,861 DEFERRED INFLOWS OF RESOURCES Pension items - Police Pension 25,779,509 - 25,779,509 - Pension items - Fire Pension 12,791,367 - 12,791,367 - Pension items - IMRF 128,371 28,210 156,581 16,676 OPEB items 8,845,067 490,595 9,335,662 241,965 Property taxes levied for future periods 51,796,988 450,000 52,246,988 10,034,604 Leases 375,045 4,257,921 4,632,966 - Total deferred inflows of resources 99,716,347 5,226,726 104,943,073 10,293,245 Total liabilities and deferred inflows of resources 503,689,616 146,717,796 650,407,412 17,305,106 NET POSITION Net investment in capital assets 124,117,932 304,071,305 428,189,237 4,376,249 Restricted for Highway maintenance 5,101,178 - 5,101,178 - Emergency telephone system 749,182 - 749,182 - Public safety 296,710 - 296,710 - HUD approved projects 488,533 - 488,533 - Neighborhood improvements 5,277,559 - 5,277,559 - Reparations 18,535 - 18,535 - Sustainability 779,746 - 779,746 - Governmental services 456,886 - 456,886 - Human services 186,662 - 186,662 - Capital improvements 377,027 - 377,027 - Debt service 11,256,119 - 11,256,119 2,779 General assistance 857,494 - 857,494 - Endowment - - - 5,105,955 Unrestricted (deficit)(172,951,626) 21,976,848 (150,974,778) 4,292,286 TOTAL NET POSITION (DEFICIT)(22,988,063)$ 326,048,153$ 303,060,090$ 13,777,269$ Primary Government CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION (Continued) December 31, 2025 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 37,229,633$ 9,446,008$ 640,750$ -$ Public safety 92,087,925 7,361,255 105,749 - Public works 36,315,321 1,125,652 3,689,910 4,024,419 Health and human resource development 7,615,934 382,777 1,060,102 - Recreational and cultural opportunities 11,720,418 8,129,879 282,856 - Housing and economic development 13,789,906 12,298,485 4,562,076 393,964 Interest 4,331,827 - - - Total governmental activities 203,090,964 38,744,056 10,341,443 4,418,383 Business-Type Activities Water 26,294,266 29,986,850 - 708,582 Sewer 6,940,832 8,382,632 - - Solid waste 6,487,339 6,033,846 - - Motor vehicles parking system 9,979,695 10,497,376 - - Total business-type activities 49,702,132 54,900,704 - 708,582 TOTAL PRIMARY GOVERNMENT 252,793,096$ 93,644,760$ 10,341,443$ 5,126,965$ COMPONENT UNIT Evanston Public Library 11,490,357$ 47,726$ 653,324$ -$ Program Revenues CITY OF EVANSTON, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2025 - 9 - Component Unit Total Evanston Governmental Business-Type Primary Public Activities Activities Government Library (27,142,875)$ -$ (27,142,875)$ -$ (84,620,921) - (84,620,921) - (27,475,340) - (27,475,340) - (6,173,055) - (6,173,055) - (3,307,683) - (3,307,683) - 3,464,619 - 3,464,619 - (4,331,827) - (4,331,827) - (149,587,082) - (149,587,082) - - 4,401,166 4,401,166 - - 1,441,800 1,441,800 - - (453,493) (453,493) - - 517,681 517,681 - - 5,907,154 5,907,154 - (149,587,082) 5,907,154 (143,679,928) - - - - (10,789,307) General Revenues Taxes Property tax 52,876,168 950,000 53,826,168 8,468,730 Other taxes 8,743,603 154,484 8,898,087 - Sales and home rule tax 28,349,072 - 28,349,072 - Utility tax 6,458,716 - 6,458,716 - Liquor tax 3,289,121 - 3,289,121 - Parking tax 2,967,907 - 2,967,907 - Real estate transfer tax 4,674,099 - 4,674,099 - Intergovernmental - unrestricted ARPA 3,917,986 - 3,917,986 - Personal property replacement taxes 2,098,324 - 2,098,324 - State income tax 14,145,983 - 14,145,983 - Other - 86,081 86,081 - Investment income 4,626,840 1,452,883 6,079,723 798,928 Miscellaneous 3,551,658 1,276,352 4,828,010 17,814 Transfers 8,405,640 (8,405,640) - - Total 144,105,117 (4,485,840) 139,619,277 9,285,472 CHANGE IN NET POSITION (5,481,965) 1,421,314 (4,060,651) (1,503,835) NET POSITION (DEFICIT), JANUARY 1 (17,506,098) 324,626,839 307,120,741 15,281,104 NET POSITION (DEFICIT), DECEMBER 31 (22,988,063)$ 326,048,153$ 303,060,090$ 13,777,269$ Net (Expense) Revenue and Change in Net Position Primary Government See accompanying notes to financial statements. - 10 - General Nonmajor Total Capital Obligation Governmental Governmental General Improvements Debt Service Funds Funds Cash and equivalents 4,961,599$ 1,601,679$ -$ 12,227,550$ 18,790,828$ Investments 23,059,609 968,614 115,652 22,922,181 47,066,056 Receivables Property taxes 39,291,441 - 18,135,852 13,694,420 71,121,713 Utility 653,768 - - - 653,768 Notes 75,000 - - - 75,000 Loans - - - 9,183,475 9,183,475 Special assessments - - - 837,977 837,977 Leases 266,440 - - 139,409 405,849 Accrued interest 343 - - 74 417 Other 1,353,889 - - - 1,353,889 Due from other governments 10,368,530 - - 1,220,064 11,588,594 Due from component unit 358,536 - - - 358,536 Due from other funds - 2,272 - 7,744,896 7,747,168 Advances to other funds 11,225,000 - 5,100,000 - 16,325,000 Inventories 40,918 - - - 40,918 TOTAL ASSETS 91,655,073$ 2,572,565$ 23,351,504$ 67,970,046$ 185,549,188$ LIABILITIES Vouchers payable 3,949,638$ 6,965,660$ -$ 6,840,000$ 17,755,298$ Accrued payroll 3,319,816 - - - 3,319,816 Accrued interest - - - - - Unearned revenue 434,557 316,211 - 10,191,090 10,941,858 Due to other governments 588,034 - - 581,987 1,170,021 Due to component unit 2,779 - - - 2,779 Due to other funds 2,540,390 - 6,546,988 938,695 10,026,073 Due to fiduciary funds 8,173,277 - - - 8,173,277 Advances from other funds - 13,950,000 2,000,000 375,000 16,325,000 Total liabilities 19,008,491 21,231,871 8,546,988 18,926,772 67,714,122 DEFERRED INFLOWS OF RESOURCES Long-term loans - - - 10,021,452 10,021,452 Property taxes levied for future periods 29,939,902 - 12,766,093 9,090,993 51,796,988 Leases 245,943 - - 129,102 375,045 Total deferred inflows of resources 30,185,845 - 12,766,093 19,241,547 62,193,485 Total liabilities and deferred inflows of resources 49,194,336 21,231,871 21,313,081 38,168,319 129,907,607 CITY OF EVANSTON, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES December 31, 2025 (This statement is continued on the following pages) - 11 - General Nonmajor Total Capital Obligation Governmental Governmental General Improvements Debt Service Funds Funds FUND BALANCES Nonspendable Advances 11,225,000$ -$ -$ -$ 11,225,000$ Notes 75,000 - - - 75,000 Inventory 40,918 - - - 40,918 Restricted - Highway maintenance - - - 5,101,178 5,101,178 Emergency telephone system - - - 749,182 749,182 Public safety - - - 296,710 296,710 HUD approved projects - - - 488,533 488,533 Neighborhood improvements - - - 5,440,066 5,440,066 Reparations - - - 18,535 18,535 Governmental services - - - 456,886 456,886 Sustainability - - - 779,746 779,746 Debt service - - 2,038,423 9,217,696 11,256,119 General assistance - - - 857,494 857,494 Human services 186,662 186,662 Capital improvements - - - 377,027 377,027 Assigned Capital improvements - - - 5,973,781 5,973,781 Other 14,611,787 - - - 14,611,787 Unassigned (deficit)16,508,032 (18,659,306) - (141,769) (2,293,043) Total fund balances (deficit)42,460,737 (18,659,306) 2,038,423 29,801,727 55,641,581 TOTAL LIABILITIES, INFLOWS OF RESOURCES, AND FUND BALANCES 91,655,073$ 2,572,565$ 23,351,504$ 67,970,046$ 185,549,188$ CITY OF EVANSTON, ILLINOIS BALANCE SHEET (Continued) GOVERNMENTAL FUNDS December 31, 2025 See accompanying notes to financial statements. - 12 - FUND BALANCES OF GOVERNMENTAL FUNDS 55,641,581$ 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 257,778,036$ Less internal service fund portion (12,386,337) 245,391,699 Total OPEB liability payable is not due and payable in the current period and, therefore, is not reported in the governmental funds (19,801,591) Interest payable is not due and payable in the current period and, therefore, not reported in the governmental funds (431,132) 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 (125,029,802)$ Less internal service fund portion 660,000 (124,369,802) Bonds premium liability (8,544,137) Compensated absences payable (19,339,273) Net pension liability is shown as a liability on the statement of net position Illinois Municipal Retirement Fund (197,091) Police Pension Fund (91,973,147) Firefighters' Pension Fund (90,698,955) 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 12,577,437 Police Pension Fund (6,886,516) Firefighters' Pension Fund 1,336,640 OPEB (5,958,976) Deferred inflows for long-term loans are not a available and, therefore, not revenue in fund financial statements 10,021,452 The net position of the internal service fund is included in the governmental activities on the statement of net position 20,243,748 NET POSITION OF GOVERNMENTAL ACTIVITIES (22,988,063)$ December 31, 2025 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 Capital Obligation General Improvements Debt Service REVENUES Taxes 80,681,316$ -$ 12,385,312$ Licenses and permits 17,580,349 - - Special assessments - - - Intergovernmental 18,073,617 3,524,418 - Fees - 670,449 - Charges for services 14,515,400 61,966 - Fines and forfeits 4,286,229 - - Investment income 2,365,741 128,101 372,366 Miscellaneous 2,978,395 - - Total revenues 140,481,047 4,384,934 12,757,678 EXPENDITURES Current General management and support 29,523,174 60 2 Public safety 88,581,374 - - Public works 16,202,431 13,949,475 - Health and human resource development 1,909,490 - - Recreational and cultural opportunities 15,931,458 - - Housing and economic development 4,594,776 - - Capital outlay - 1,004,180 - Debt service Principal - - 10,746,121 Interest and fiscal charges - - 5,248,689 Total expenditures 156,742,703 14,953,715 15,994,812 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (16,261,656) (10,568,781) (3,237,134) OTHER FINANCING SOURCES (USES) Transfers in 10,076,736 - 1,822,551 Transfers (out)(374,996) - - Total other financing sources (uses)9,701,740 - 1,822,551 NET CHANGE IN FUND BALANCES (6,559,916) (10,568,781) (1,414,583) FUND BALANCES (DEFICIT), JANUARY 1 (AS REPORTED)49,020,653 (8,090,525) 3,453,006 Restatement - change in reporting entity - - - FUND BALANCES (DEFICIT), JANUARY 1 (AS RESTATED)49,020,653 (8,090,525) 3,453,006 FUND BALANCES (DEFICIT), DECEMBER 31 42,460,737$ (18,659,306)$ 2,038,423$ CITY OF EVANSTON, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2025 - 14 - Previously Nonmajor Total Major Governmental Governmental ARPA Funds Funds -$ 14,292,058$ 107,358,686$ - - 17,580,349 - 215,970 215,970 - 13,324,084 34,922,119 - 1,629,663 2,300,112 - - 14,577,366 - - 4,286,229 - 1,760,632 4,626,840 - 357,293 3,335,688 - 31,579,700 189,203,359 - 7,749,683 37,272,919 - 2,459,001 91,040,375 - 5,886,871 36,038,777 - 5,306,427 7,215,917 - - 15,931,458 - 6,424,910 11,019,686 - 1,515,856 2,520,036 - - 10,746,121 - - 5,248,689 - 29,342,748 217,033,978 - 2,236,952 (27,830,619) - 1,919,996 13,819,283 - (6,538,647) (6,913,643) - (4,618,651) 6,905,640 - (2,381,699) (20,924,979) 1,392,844 30,790,582 76,566,560 (1,392,844) 1,392,844 - - 32,183,426 76,566,560 -$ 29,801,727$ 55,641,581$ See accompanying notes to financial statements. - 15 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (20,924,979)$ 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 21,600,495 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 (11,052,220) 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 10,746,121 The amortization of premium on long-term debt is reported as a reduction of interest expense on the statement of activities 878,489 Changes in total other postemployment benefits obligations are reported only in the statement of activities 41,014 The change in compensated absences payable is shown as an expense on the statement of activities (4,838,645) The change in the accrual of interest is reported as interest expense on the statement of activities 38,373 The change in the net pension liability (asset) is reported only in the statement of activities Illinois Municipal Retirement Fund (1,363,879) Police Pension Fund 22,782,897 Firefighters' Pension Fund 15,368,495 The change in deferred inflows and outflows of resources is reported only in the statement of activities Illinois Municipal Retirement Fund (4,639,544) Police Pension Fund (20,459,696) Firefighters' Pension Fund (13,586,505) OPEB (827,885) The change in deferred inflows for long-term loans is not an expense on the statement of activities (162,507) Internal service funds are reported separately in the fund financial statements 918,011 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (5,481,965)$ 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, 2025 See accompanying notes to financial statements. - 16 - Governmental Activities Motor Vehicle Nonmajor Internal Service Water Sewer Parking System Solid Waste Total Funds CURRENT ASSETS Cash and cash equivalents 300$ 983,478$ 2,093,784$ 3,019,346$ 6,096,908$ 5,057,582$ Investments 20,815,446 - 395 - 20,815,841 - Receivables Property taxes - - - 450,000 450,000 - Accounts - water and sewerage charges Accounts - billed 1,915,743 127,817 - 172,423 2,215,983 - Accounts - unbilled 2,004,883 1,211,240 - 875,919 4,092,042 - Leases - - 4,567,518 - 4,567,518 - Accrued interest - - 6,383 - 6,383 - Other - - 379,181 81,972 461,153 71,727 Inventories 968,039 127,305 - - 1,095,344 1,898,555 Prepaid items - - - - - 5,760,302 Due from other funds - 8,882,433 - 532,340 9,414,773 2,455,259 Total current assets 25,704,411 11,332,273 7,047,261 5,132,000 49,215,945 15,243,425 NONCURRENT ASSETS Capital assets Capital assets not being depreciated 49,921,488 - 4,396,479 - 54,317,967 - Capital assets being depreciated 199,439,694 271,061,294 95,503,100 1,802,208 567,806,296 34,763,707 Accumulated depreciation (49,356,115) (90,419,683) (55,046,021) (606,650) (195,428,469) (22,377,370) Total capital assets 200,005,067 180,641,611 44,853,558 1,195,558 426,695,794 12,386,337 Total noncurrent assets 200,005,067 180,641,611 44,853,558 1,195,558 426,695,794 12,386,337 Total assets 225,709,478 191,973,884 51,900,819 6,327,558 475,911,739 27,629,762 DEFERRED OUTFLOWS OF RESOURCES Asset retirement obligations 3,401,447 - - - 3,401,447 - Pension items - IMRF 1,764,221 321,012 309,384 397,484 2,792,101 - OPEB items 56,473 36,895 33,453 31,196 158,017 17,652 Total deferred outflows of resources 5,222,141 357,907 342,837 428,680 6,351,565 17,652 Total assets and deferred outflows of resources 230,931,619 192,331,791 52,243,656 6,756,238 482,263,304 27,647,414 CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2025 Business-Type Activities (This statement is continued on the following page.) - 17 - Governmental Activities Motor Vehicle Nonmajor Internal Service Water Sewer Parking System Solid Waste Total Funds CURRENT LIABILITIES Vouchers payable 12,611,602$ 1,867,923$ 191,516$ 724,977$ 15,396,018$ 494,267$ Retainage payable 1,770,588 - - - 1,770,588 - Deposits payable - - - - - - Unearned revenue - - - - - - Interest payable - restricted 192,848 39,482 2,658 - 234,988 - Loans payable - IEPA 1,691,464 1,875,957 - - 3,567,421 - Loans payable - WIFIA 235,603 - - - 235,603 - Current portion of GO bonds payable 2,086,347 275,059 50,000 - 2,411,406 - Current portion of total OPEB liability 16,017 10,464 9,488 8,848 44,817 5,006 Claims payable - - - - - 1,108,082 Due to other funds 9,215,196 - 282,159 - 9,497,355 93,772 Compensated absences payable 571,520 174,489 171,712 68,415 986,136 116,768 Total current liabilities 28,391,185 4,243,374 707,533 802,240 34,144,332 1,817,895 NONCURRENT LIABILITIES Loans payable - IEPA 53,666,809 4,776,954 - - 58,443,763 - Loans payable - WIFIA 9,749,101 - - - 9,749,101 - General obligation bonds payable 37,980,295 2,774,845 1,276,447 - 42,031,587 660,000 Asset retirement obligations 5,081,625 - - - 5,081,625 - Net pension liability - IMRF 27,366 4,979 4,799 6,166 43,310 - Total OPEB liability 378,943 247,575 224,480 209,334 1,060,332 118,446 Claims payable - - - - - 4,722,719 Compensated absences payable 329,015 23,272 50,410 31,678 434,375 29,804 Total noncurrent liabilities 107,213,154 7,827,625 1,556,136 247,178 116,844,093 5,530,969 Total liabilities 135,604,339 12,070,999 2,263,669 1,049,418 150,988,425 7,348,864 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 17,825 3,243 3,126 4,016 28,210 - OPEB items 175,330 114,548 103,862 96,855 490,595 54,802 Deferred property taxes - - - 450,000 450,000 - Leases - - 4,257,921 - 4,257,921 - Total deferred inflows of resources 193,155 117,791 4,364,909 550,871 5,226,726 54,802 Total liabilities and deferred inflows of resources 135,797,494 12,188,790 6,628,578 1,600,289 156,215,151 7,403,666 NET POSITION Net investment in capital assets 89,239,840 170,108,796 43,527,111 1,195,558 304,071,305 11,591,776 Unrestricted 5,894,285 10,034,205 2,087,967 3,960,391 21,976,848 8,651,972 TOTAL NET POSITION 95,134,125$ 180,143,001$ 45,615,078$ 5,155,949$ 326,048,153$ 20,243,748$ Business-Type Activities PROPRIETARY FUNDS December 31, 2025 CITY OF EVANSTON, ILLINOIS STATEMENT OF NET POSITION (Continued) See accompanying notes to financial statements. - 18 - Governmental Activities Motor Vehicle Nonmajor Internal Service Water Sewer Parking System Solid Waste Total Funds OPERATING REVENUES Charges for services 29,240,102$ 8,357,732$ 10,002,450$ 6,024,680$ 53,624,964$ 28,075,231$ Miscellaneous 746,748 24,900 494,926 9,166 1,275,740 - Total operating revenues 29,986,850 8,382,632 10,497,376 6,033,846 54,900,704 28,075,231 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 2,728,758 2,034,118 2,321,223 2,038,162 9,122,261 - Operations 18,084,674 795,507 4,875,936 4,302,955 28,059,072 26,973,376 Total operating expenses excluding depreciation 20,813,432 2,829,625 7,197,159 6,341,117 37,181,333 26,973,376 OPERATING INCOME (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 9,173,418 5,553,007 3,300,217 (307,271) 17,719,371 1,101,855 Depreciation and amortization 3,659,829 3,872,178 2,750,636 146,222 10,428,865 2,041,818 OPERATING INCOME (LOSS)5,513,589 1,680,829 549,581 (453,493) 7,290,506 (939,963) NON-OPERATING REVENUES (EXPENSES) Investment income 988,705 271,676 120,923 71,579 1,452,883 131,283 Property taxes - - - 950,000 950,000 - Miscellaneous income - - - - - 2,453 Intergovernmental 86,081 - - - 86,081 97,762 Legal settlements 1,276,352 - - - 1,276,352 - Other taxes - - - 154,484 154,484 - Interest expense (1,821,005) (239,029) (31,900) - (2,091,934) - Gain on disposal of capital assets - - - - - 126,476 Total non-operating revenues (expenses)530,133 32,647 89,023 1,176,063 1,827,866 357,974 INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 6,043,722 1,713,476 638,604 722,570 9,118,372 (581,989) TRANSFERS AND CONTRIBUTIONS Transfers in - - - - - 1,500,000 Transfers (out)(4,129,008) (1,304,244) (2,972,388) - (8,405,640) - Capital contributions 708,582 - - - 708,582 - Total transfers and capital contributions (3,420,426) (1,304,244) (2,972,388) - (7,697,058) 1,500,000 NET INCOME (LOSS)2,623,296 409,232 (2,333,784) 722,570 1,421,314 918,011 NET POSITION, JANUARY 1 92,510,829 179,733,769 47,948,862 4,433,379 324,626,839 19,325,737 NET POSITION, DECEMBER 31 95,134,125$ 180,143,001$ 45,615,078$ 5,155,949$ 326,048,153$ 20,243,748$ CITY OF EVANSTON, ILLINOIS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2025 Business-Type Activities See accompanying notes to financial statements. - 19 - Governmental Activities - Motor Vehicle Nonmajor Internal Service Water Sewer Parking System Solid Waste Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 29,108,762$ 8,614,689$ 10,549,907$ 5,955,559$ 54,228,917$ 3,834,129$ Receipts from (payments for) interfund services provided (2,721,157) (831,404) (726,802) (599,090) (4,878,453) 23,424,274 Receipts from other agencies - - - - - 799,182 Payments to suppliers (14,312,279) (164,140) (4,977,777) (3,728,512) (23,182,708) (2,433,750) Payments to employees (1,119,614) (1,380,051) (1,477,998) (1,554,666) (5,532,329) (6,628,352) Payments for insurance premiums - - - - - (19,006,790) Net cash from operating activities 10,955,712 6,239,094 3,367,330 73,291 20,635,427 (11,307) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property and other taxes - - - 1,104,484 1,104,484 - Intergovernmental revenue 86,081 - - - 86,081 97,762 Settlements 1,276,352 - - - 1,276,352 - Transfers in - - - - - 1,500,000 Transfers (out)(4,129,008) (1,304,244) (2,972,388) - (8,405,640) - Interfund activity 2,325,419 (190,338) (19,037) 525,216 2,641,260 6,258,388 Net cash from noncapital financing activities (441,156) (1,494,582) (2,991,425) 1,629,700 (3,297,463) 7,856,150 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Sale of capital assets - - - - - 126,476 Acquisition and construction of capital assets (14,699,842) (2,204,556) (969,823) (679,973) (18,554,194) (4,810,905) Proceeds from loans 13,850,954 - - - 13,850,954 - Principal paid on general obligation bonds (2,148,973) (259,823) (45,000) - (2,453,796) - Interest paid on general obligation bonds and IEPA loans (1,815,203) (288,350) (37,562) - (2,141,115) - Principal paid on IEPA and WIFIA loans (1,695,329) (2,119,988) - - (3,815,317) - Net cash from capital and related financing activities (6,508,393) (4,872,717) (1,052,385) (679,973) (13,113,468) (4,684,429) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments (4,902,020) - (15) - (4,902,035) - Interest income 895,857 271,676 121,306 71,579 1,360,418 131,283 Net cash from investing activities (4,006,163) 271,676 121,291 71,579 (3,541,617) 131,283 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - 143,471 (555,189) 1,094,597 682,879 3,291,697 CASH AND CASH EQUIVALENTS, JANUARY 1 300 840,007 2,648,973 1,924,749 5,414,029 1,765,885 CASH AND CASH EQUIVALENTS, DECEMBER 31 300$ 983,478$ 2,093,784$ 3,019,346$ 6,096,908$ 5,057,582$ CITY OF EVANSTON, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2025 (This statement is continued on the following page.) - 20 - Governmental Activities - Motor Vehicle Nonmajor Internal Service Water Sewer Parking System Solid Waste Total Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)5,513,589$ 1,680,829$ 549,581$ (453,493)$ 7,290,506$ (939,963)$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation 3,659,829 3,872,178 2,750,636 146,222 10,428,865 2,041,818 Miscellaneous income - - - - - 2,453 Changes in assets and liabilities Accounts receivable (878,088) 232,057 (96,256) (78,287) (820,574) (20,099) Lease items - - 148,787 - 148,787 - Prepaid expenses 150,137 - - - 150,137 (2,139,316) Inventories (71,320) 9,574 - - (61,746) (73,576) Compensated absences (11,469) 3,682 (36,179) (52,882) (96,848) (42,289) OPEB items 13,127 17,366 39,683 53,327 123,503 21,156 Pension items - IMRF 785,461 139,619 320,915 302,557 1,548,552 - Deposits payable - - - - - - Vouchers payable 1,723,583 283,789 (309,837) 155,847 1,853,382 35,458 Deferred outflows - asset retirement obligations 70,863 - - - 70,863 - Claims payable - - - - - 1,103,051 NET CASH FROM OPERATING ACTIVITIES 10,955,712$ 6,239,094$ 3,367,330$ 73,291$ 20,635,427$ (11,307)$ NONCASH INVESTING, CAPITAL, AND RELATED FINANCING ACTIVITIES Capital assets acquired through vouchers and retainage payable 10,546,528$ 830,000$ -$ -$ 11,376,528$ 134,561$ Capital asset contributions 708,582 - - - 708,582 - Change in fair value of investments 92,848 - - - 92,848 - TOTAL NONCASH INVESTING, CAPITAL, AND RELATED FINANCING ACTIVITIES 11,347,958$ 830,000$ -$ -$ 12,177,958$ 134,561$ PROPRIETARY FUNDS For the Year Ended December 31, 2025 CITY OF EVANSTON, ILLINOIS STATEMENT OF CASH FLOWS (Continued) See accompanying notes to financial statements. - 21 - Pension Trust Funds ASSETS Cash and cash equivalents 4,567,872$ Investments Investments held in the Illinois Firefighters' Pension Investment Fund 148,981,339 Investments held in the Illinois Police Pension Investment Fund 229,524,792 Prepaids items 9,334 Receivables Accounts 3,123 Accrued interest 948 Due from City 8,173,277 Total assets 391,260,685 LIABILITIES Vouchers payable 3,935 Total liabilities 3,935 NET POSITION RESTRICTED FOR PENSIONS 391,256,750$ CITY OF EVANSTON, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2025 See accompanying notes to financial statements. - 22 - Pension Trust Funds ADDITIONS Contributions Contributions - employer 28,512,079$ Contributions - plan members 3,375,940 Total contributions 31,888,019 Investment income Net appreciation in fair value of investments 53,827,949 Interest on investments 4,040,411 Less investment expenses (321,606) Total investment income 57,546,754 Total additions 89,434,773 DEDUCTIONS Administration 348,298 Benefit payments and refunds 28,489,863 Total deductions 28,838,161 NET INCREASE 60,596,612 NET POSITION RESTRICTED FOR PENSIONS January 1 330,660,138 December 31 391,256,750$ CITY OF EVANSTON, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2025 See accompanying notes to financial statements. - 23 - CITY OF EVANSTON, ILLINOIS NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Evanston, Illinois (the City) and Evanston Public Library (the Library) 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 separate organization are entirely or almost entirely for the direct benefit of the primary government , its component units, or its constituents; (2) the primary government or its component units , is entitled to, or has the ability to access, a majority of the economic resources received or held by the separate organization; and (3) the economic resources received or held by an individual organization that the primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to the primary government. Component units are reported using one of two methods , discrete presentation or blending. Generally, component units should be discretely presented in a separate column in the financial statements. A component unit should be reported as part of the primary government using the blending method if it meets any one of the following criteria: (1) the primary government and the component unit have substantively the same governing body and a financial benefit or burden relationship exists; (2) the - 24 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) primary government and the component unit have substantively the same governing body and management of the primary government has operational responsibility for the component unit; (3) the component unit serves or benefits, exclusively or almost exclusively, the primary government rather than its citizens; or (4) the total debt of the component unit will be paid entirely or almost entirely from resources of the primary government. 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 Library promotes the development of independent, self-confident, and literate citizens through the provision of open access to cultural , intellectual, and informational resources for all ages. Beginning FY 2013 , the Library financials are shown separately as a discrete component unit of the City. 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 Library Board of Trustees for the upcoming calendar year. This budget is included in the budget documents submitted by the City Manager to the City Council. The Library budget is legally enacted through passage of an ordinance by the City Council. - 25 - 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 Library serves the community through two branches. The Library partners with Northwestern University and other agencies to implement digitally based science , technology, and math learning opportunities for teens. The Library is continually focused on expanding summer reading programs to serve the patrons of all ages. The Library has also expanded community outreach by promoting library services at various local places and events. The Library 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 percen tage of salary as established by state statute and the City is obligated to fund all remaining PPERS 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. PPERS does not issue a stand-alone financial report. 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 i s authorized to approve the actuarial assumptions used in the determination of contribution levels. Accordingly, the FPERS is fiscally dependent on the City. FPERS does not issue a stand-alone financial report. - 26 - 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 Note 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 these statements excluding interfund services provided. Governmental activities , which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 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 its operations. A fund is a separate accounting entity with a self -balancing set of accounts. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Funds are classified into three categories: governmental , proprietary, and fiduciary. Each category, in turn, is divided into separate “fund types.” - 27 - 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 acc ounted 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 and fiduciary fund statements. Revenues and additions are recorded when earned and expenses and deductions 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. Expe nditures 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. - 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 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 Capital Improvement Fund is a capital projects fund to account for capital improvements of the City, financed by earmarking revenues to provide for the costs associated with the projects. The General Obligation Debt Fund is a debt service fund which accumulate monies for the principal and interest payments on general obligation debt. - 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) Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The 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 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. The City has elected to report this fund as major. 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. - 30 - 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 revenue is measurable but not earned under the accrual basis of accounting. Unearned revenues also arise when resources are received by the City and Library before it has a legal claim to them or prior to the provision of services, as when grant monies are received prior to the issuance of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City and Library have a legal claim to the resources, the liability and deferred inflows of resource for unearned and unavailable/deferred revenue are removed from the financial statements and r evenue is recognized. - 31 - 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. Tangible and Intangible 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 purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Infrastructure acquired prior to the February 28, 2003 implementation of GASB Statement No. 34 has been reported. Major outlays for capital assets and improvements are capitalized as projects are constructed. - 32 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i. Tangible and Intangible 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 Intangible assets represent the City’s right-to-use leased assets. These intangible assets, as defined by GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription-Based Information Technology Arrangements, are for lease or subscription contracts of nonfinancial assets including equipment, buildings, and software and are amortized over the shorter of the lease term or useful life of the intangible asset. 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. In accordance with GASB Statement 101, Compensated Absences, vested or accumulated vacation and sick leave that is due to employees who have retired or terminated by the end of the year is reported as an expenditure and a fund liability of the governmental fund that will pay it. Vested or accumulated vacation and sick leave of proprietary funds and governmental activities is recorded as an expense and liability of those funds as the benefits accrue to employees. The entire balance of vacation leave is recognized as a liability at year end. A liability is recognized for the portion of accumulating sick leave benefits that is estimated to be more like ly than not to be used for time off or otherwise paid in cash or settled through noncash means. 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. - 33 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k. Long-Term Obligations (Continued) 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. 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 financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 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. - 34 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) n. Property Taxes (Continued) 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 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 2024 tax levy received during the fiscal period between January 1, 2025 and December 31, 2025. A 3% allowance for loss is reflected in the City and the Library financial statements. The 2025 tax levy collections are intended to finance the 202 6 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 cannot 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. - 35 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) o. Fund Equity (Continued) 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. 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 0% 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 restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit doing this , such as in grant agreements requiring dollar for dollar spending. Additionally, the City and the Library would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. In the government-wide and proprietary financial statements , restricted net position is legally restricted by outside parties for a specific purpose. Net position has not been restricted by enabling legislation adopted by the City. Net investment in capital assets represents the book value of capital assets less any outstanding long -term debt to acquire or construct the capital assets as well as any other non -debt capital related liabilities. - 36 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. 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 the 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, 2025, outstanding bond balance of the 2019A Revenue Bonds was $3,045,000 and outstanding balance of the 2019B Revenue Bonds was $3,115,000. 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 Roycemore 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, 2025, outstanding bond balance was $8,275,000. - 37 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY The Capital Improvement Fund had a net deficit of $18,659,305 as of December 31, 2025. The City plans to use current resources to pay for future liabilities. The Special Service District #9 Fund had a net deficit of $49,145 as of December 31, 2025. The City plans to use current resources to pay for future liabilities. The Special Service District #10 Fund had a net deficit of $92,624 as of December 31, 2025. The City plans to use current resources to pay for future liabilities. 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, 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. - 38 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. DEPOSITS WITH FINANCIAL INSTITUTIONS AND INVESTMENTS (Continued) a. Types of Accounts and Securities (Continued) 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 inve stment 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 such 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 dep osit and U.S. 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. It is the policy of the City to invest public funds in a manner whereby its investment objectives are prioritized in the following order: safety of principal , liquidity, and rate of return. The City also seeks to maintain diversification of investments to avoid overconcentration of any one specific issuer or business sector. To mitigate interest rate risk, the City tries to structure the investment portfolio to meet daily cash flow needs so as to avoid needing to sell securities on the open market. The Ci ty 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. 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. - 39 - 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, 2025: Investment Maturities (in Years) Investment Type Fair Value Less than 1 1-5 6-10 Greater than 10 U.S. Treasury obligations $ 37,271,700 $ 10,171,501 $ 27,100,199 $ - $ - Municipal bonds 8,069,240 3,526,101 4,543,139 - - Negotiable CDs 1,049,705 1,049,705 - - - TOTAL $ 46,390,645 $ 14,747,307 $ 31,643,338 $ - $ - 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 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 Aa1 by Moody’s. IMET’s Convenience Fund collateralizes all of its deposits 110%. Investments in negotiable CDs were not rated. The 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, 2024: The investments in municipal bonds and negotiable CDs are valued using quoted matrix pricing models (Level 2 inputs). The U.S. Treasury obligations use Level 1 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. - 40 - 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, 2025. 4. RECEIVABLES a. Summary of Receivables Other receivables as of December 31, 2025 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 $ 158,532 $ - $ 158,532 Hotel tax 81,657 - 81,657 Liquor tax 306,932 - 306,932 Local motor fuel tax 83,296 - 83,296 Parking tax 49,735 - 49,735 Transportation network tax 257,022 - 257,022 Athletic tax 352,125 - 352,125 Intergovernmental 64,590 - 64,590 Other miscellaneous 71,727 461,153 532,880 NET TOTAL RECEIVABLES $ 1,425,616 $ 461,153 $ 1,886,769 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. - 41 - 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% $ 2,594,932 $ - $ 150,257 $ - $ 2,444,675 Amortizing 0% - 8% 2,617,795 - 53,810 - 2,563,985 Forgivable 0% - 8% 4,372,112 - 21,797 (97,500) 4,252,815 Allowance (78,000) - - - (78,000) TOTAL LOANS $ 9,506,839 $ - $ 225,864 $ (97,500) $ 9,183,475 - 42 - 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, 2025, was as follows: Beginning Balances Increases Decreases Ending Balances GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 7,250,067 $ 1,615,365 $ - $ 8,865,432 Right of way 18,695,896 - - 18,695,896 Artwork 508,480 30,950 - 539,430 Construction in progress 48,451,388 14,247,183 39,441,673 23,256,898 Total capital assets not being depreciated 74,905,831 15,893,498 39,441,673 51,357,656 Capital assets being depreciated/amortized Buildings and improvements 148,879,713 15,344,712 - 164,224,425 Office equipment and furniture 7,792,312 - - 7,792,312 Intangible assets 8,314,832 - - 8,314,832 Machinery and equipment 34,450,444 5,595,494 625,290 39,420,648 Infrastructure 217,428,496 29,412,346 - 246,840,842 Lease assets 502,532 - - 502,532 Total capital assets being depreciated/amortized 417,368,329 50,352,552 625,290 467,095,591 Less accumulated depreciation/amortization for Buildings and improvements 56,230,481 3,149,978 - 59,380,459 Office equipment and furniture 6,783,791 327,948 - 7,111,739 Intangible assets 7,901,424 129,477 - 8,030,901 Machinery and equipment 24,673,086 2,215,285 625,290 26,263,081 Infrastructure 152,115,149 7,271,350 - 159,386,499 Lease assets 502,532 - - 502,532 Total accumulated depreciation/amortization 248,206,463 13,094,038 625,290 260,675,211 Total capital assets being depreciated/amortized, net 169,161,866 37,258,514 - 206,420,380 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 244,067,697 $ 53,152,012 $ 39,441,673 $ 257,778,036 - 43 - 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 35,254,061 15,879,858 1,767,845 49,366,074 Artwork 359,752 - - 359,752 Total capital assets not being depreciated 40,205,954 15,879,858 1,767,845 54,317,967 Capital assets being depreciated/amortized Land improvements 10,316,777 - - 10,316,777 Buildings and improvements 79,065,626 - - 79,065,626 Leasehold improvements 772,131 - - 772,131 Plant 70,520,366 1,784,409 - 72,304,775 Transmission and distribution system 118,089,849 8,660,148 - 126,749,997 Sewer system and underground lines 265,185,772 2,224,927 - 267,410,699 Intangible assets 1,250,490 - - 1,250,490 Equipment 5,682,638 2,459,422 - 8,142,060 Parking meters 1,793,741 - - 1,793,741 Total capital assets being depreciated/amortized 552,677,390 15,128,906 - 567,806,296 Less accumulated depreciation/amortization Land improvements 5,852,704 422,980 - 6,275,684 Buildings and improvements 42,488,083 1,921,673 - 44,409,756 Leasehold improvements 477,633 23,404 - 501,037 Plant 26,775,666 1,850,468 - 28,626,134 Transmission and distribution system 18,606,565 1,738,498 - 20,345,063 Sewer system and underground lines 84,560,020 3,631,348 - 88,191,368 Intangible assets 1,215,492 34,996 - 1,250,488 Equipment 3,489,272 646,299 - 4,135,571 Parking meters 1,605,032 88,336 - 1,693,368 Total accumulated depreciation/amortization 185,070,467 10,358,002 - 195,428,469 Total capital assets being depreciated and amortized, net 367,606,923 4,770,904 - 372,377,827 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 407,812,877 $ 20,650,762 $ 1,767,845 $ 426,695,794 - 44 - 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 $ 294,867 Public safety 524,490 Public works 9,260,449 Housing and economic development 9,303 Recreation and cultural opportunities 963,111 Internal service funds 2,041,818 TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 13,094,038 BUSINESS-TYPE ACTIVITIES Water $ 3,588,966 Sewer 3,872,178 Solid waste 146,222 Motor vehicle parking 2,750,636 TOTAL DEPRECIATION EXPENSE - BUSINESS-TYPE ACTIVITIES $ 10,358,002 The amount reported for Water Fund depreciation and amortization includes $70,86 3 amortization of the City’s asset retirement obligation. b. Construction Commitments The value of construction contracts signed, where the work has not yet been performed at December 31, 2025 is as follows: Capital Improvement Fund $ 10,858,271 Crown Capital Improvement Fund 68,844 CDBG Fund 191,896 Motor Fuel Tax Fund 3,233,530 Water Fund 39,048,145 Sewer Fund 1,776,662 Motor Vehicle Parking System Fund 57,434 West Evanston TIF 386,344 Special Assessment Fund 107,762 Chicago Main TIF 925,269 Five Fifth TIF 74,011 Sustainability Fund 245,238 TOTAL CONSTRUCTION COMMITMENTS $ 56,973,406 - 45 - 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 to/from other funds represent the current portion of these interfund loans, and advances to/from other funds represent the noncurrent portion. Due from/to other funds are as follows: Due From Due To General $ - $ 2,540,390 General Obligation Debt Service - 6,546,988 Capital Improvement 2,272 - Water - 9,215,196 Sewer 8,882,433 - Solid Waste 532,340 - Motor Vehicle Parking System - 282,159 Nonmajor Governmental 7,744,896 938,695 Internal Service 2,455,259 93,772 TOTAL $ 19,617,200 $ 19,617,200 b. Advances from/to other funds are as follows: Advance From Advance To General $ - $ 11,225,000 Capital Improvements 13,950,000 - General Obligation Debt Service 2,000,000 5,100,000 Nonmajor Governmental 375,000 - TOTAL $ 16,325,000 $ 16,325,000 c. 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. - 46 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. INTERFUNDS (Continued) c. Interfund Transfers (Continued) Interfund transfers between funds for the year ended December 31 , 2025 were as follows: Transfers In Transfers Out Governmental Funds General Emergency Telephone System $ 99,996 $ - Five-Fifths Tax Increment District 73,848 - Good Neighbor 1,545,000 - Dempster-Dodge Tax Increment District 24,396 - Chicago Main Tax Increment District 64,752 - Howard Ridge Tax Increment District 56,796 - West Evanston Tax Increment District 110,556 - Water 4,129,008 - Sewer 999,996 - Motor Vehicle Parking System 2,972,388 - Crown Maintenance - 174,996 Sustainability - 200,000 Total General 10,076,736 374,996 General Obligation Debt Service Sewer 304,248 - Chicago Main Tax Increment District 243,240 - Dempster-Dodge Tax Increment District 168,948 - Howard Ridge Tax Increment District 287,112 - Crown Construction 588,372 - Special Assessment 230,631 - Total General Obligation Debt Service 1,822,551 - Nonmajor Governmental Emergency Telephone System General - 99,996 Total Emergency Telephone System - 99,996 - 47 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. INTERFUNDS (Continued) c. Interfund Transfers (Continued) Transfers In Transfers Out Governmental Funds (Continued) Affordable Housing Good Neighbor $ 1,030,000 $ - Total Affordable Housing 1,030,000 - ARPA Equipment Replacement - 1,500,000 Total ARPA - 1,500,000 Sustainability General 200,000 - Good Neighbor 515,000 - Total Sustainability 715,000 - Good Neighbor General - 1,545,000 Affordable Housing - 1,030,000 Sustainability - 515,000 Total Good Neighbor - 3,090,000 Chicago Main Tax Increment District General - 64,752 General Obligation Debt Service - 243,240 Total Chicago Main Tax Increment District - 307,992 Dempster-Dodge Tax Increment District General - 24,396 General Obligation Debt Service - 168,948 Total Dempster-Dodge Tax Increment District - 193,344 Howard Ridge Tax Increment District General - 56,796 General Obligation Debt Service - 287,112 Total Howard Ridge Tax Increment District - 343,908 - 48 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. INTERFUNDS (Continued) c. Interfund Transfers (Continued) Transfers In Transfers Out Governmental Funds (Continued) Nonmajor Governmental (Continued) West Evanston Tax Increment District General $ - $ 110,556 Total West Evanston Tax Increment District - 110,556 Five-Fifths Tax Increment District General - 73,848 Total Five-Fifths Tax Increment District - 73,848 Crown Construction General Obligation Debt Service - 588,372 Total Crown Construction - 588,372 Crown Maintenance General 174,996 - Total Crown Maintenance 174,996 - Special Assessment General Obligation Debt Service - 230,631 Total Special Assessment - 230,631 Total Nonmajor Governmental Funds 1,919,996 6,538,647 Total Governmental Funds 13,819,283 6,913,643 Enterprise Funds Water General - 4,129,008 Total Water - 4,129,008 Sewer General - 999,996 General Obligation Debt Service - 304,248 Total Sewer - 1,304,244 - 49 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. INTERFUNDS (Continued) c. Interfund Transfers (Continued) Transfers In Transfers Out Enterprise Funds (Continued) Motor Vehicle Parking System General $ - $ 2,972,388 Total Motor Vehicle Parking System - 2,972,388 Total Enterprise Funds - 8,405,640 Internal Service Funds Equipment Replacement ARPA 1,500,000 - Total Equipment Replacement 1,500,000 - Total Internal Service Funds 1,500,000 - TOTAL PRIMARY GOVERNMENT $ 15,319,283 $ 15,319,283 Transfers between the primary government and component unit have been reclassified on the statement of activities. - 50 - 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 $ 5,490,000 $ - $ 605,000 $ 4,885,000 $ 635,000 Series 2013B 2.00%-3.00% 12/1/2025 890,798 - 890,798 - - Series 2014A 1.25%-5.00% 12/1/2034 5,385,000 - 455,000 4,930,000 475,000 Series 2015A 2.00%-4.00% 12/1/2035 4,745,000 - 380,000 4,365,000 370,000 Series 2016A 2.00%-4.00% 12/1/2036 6,135,000 - 480,000 5,655,000 500,000 Series 2016B 2.00%-3.00% 12/1/2026 1,705,000 - 840,000 865,000 865,000 Series 2017A 3.00%-4.00% 12/1/2037 8,305,000 - 560,000 7,745,000 580,000 Series 2017B 4.00%-5.00% 12/1/2027 2,652,469 - 859,639 1,792,830 882,624 Series 2017C 2.05%-4.00% 12/1/2035 3,760,000 - 280,000 3,480,000 290,000 Series 2018A 3.12%-5.00% 12/1/2043 22,470,000 - 785,000 21,685,000 825,000 Series 2018B 2.29%-5.00% 12/1/2038 9,011,697 - 473,684 8,538,013 497,076 Series 2018C 4.00%-5.00% 12/1/2038 2,911,806 - 681,222 2,230,584 714,452 Series 2018D 3.70%-4.25% 12/1/2038 3,045,000 - 165,000 2,880,000 175,000 Series 2019A 1.72%-2.85% 12/1/2043 11,705,000 - 385,000 11,320,000 400,000 Series 2019B 1.66%-2.68% 12/1/2039 5,847,712 - 271,795 5,575,917 285,522 Series 2020A&B 1.42%-1.61% 12/1/2040 14,530,691 - 1,296,983 13,233,708 1,363,175 Series 2021 2.00%-5.00% 12/1/2041 10,050,750 - 817,000 9,233,750 629,350 Series 2024 4.00%-5.00% 12/1/2044 17,135,000 - 520,000 16,615,000 545,000 Subtotal G.O. debt governmental activities 135,775,923 - 10,746,121 125,029,802 10,032,199 Bonds premium 9,422,626 - 878,489 8,544,137 - OPEB liability - City 19,842,605 - 41,014 19,801,591 803,029 OPEB liability - Internal Service Funds 113,471 9,981 - 123,452 5,006 Net pension liability – IMRF* - 197,091 - 197,091 - Net pension liability - Police Pension 114,756,044 - 22,782,897 91,973,147 - Net pension liability - Firefighters’ Pension 106,067,450 - 15,368,495 90,698,955 - Compensated absences payable - City 14,500,628 4,838,645 - 19,339,273 9,352,753 Compensated absences payable - Internal Service Funds 188,861 - 42,289 146,572 116,768 Claims payable 4,727,750 2,344,476 1,241,425 5,830,801 1,108,082 Subtotal other governmental activities liabilities 269,619,435 7,390,193 40,354,609 236,655,019 11,385,638 TOTAL GOVERNMENTAL ACTIVITIES DEBT AND LIABILITIES $ 405,395,358 $ 7,390,193 $ 51,100,730 $ 361,684,821 $ 21,417,837 - 51 - 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 $ 1,090,000 $ - $ 105,000 $ 985,000 $ 105,000 Series 2014 1.25%-5.00% 12/1/2034 1,625,000 - 135,000 1,490,000 145,000 Series 2015A 2.00%-4.00% 12/1/2035 3,520,000 - 265,000 3,255,000 275,000 Series 2016A 2.00%-4.00% 12/1/2036 2,435,000 - 175,000 2,260,000 180,000 Series 2017A 3.00%-4.00% 12/1/2037 690,000 - 45,000 645,000 50,000 Series 2018B 2.29%-5.00% 12/1/2038 4,505,847 - 236,842 4,269,005 248,538 Series 2018C 4.00%-5.00% 12/1/2038 593,193 - 138,778 454,415 145,548 Series 2019B 1.66%-2.68% 12/1/2039 3,273,719 - 152,159 3,121,560 159,845 Series 2020 2.00%-5.00% 12/1/2040 10,139,309 - 433,017 9,706,292 451,825 Series 2021 2.00%-5.00% 12/1/2041 1,814,250 - 328,000 1,486,250 190,650 Series 2024 4.00%-5.00% 12/1/2044 14,445,000 - 440,000 14,005,000 460,000 Subtotal G.O. debt business-type activities 44,131,318 - 2,453,796 41,677,522 2,411,406 IEPA loans 2.535%-3.590% Various 65,796,632 - 3,785,448 62,011,184 3,567,421 WIFIA loan 2.00% 12/1/2056 4,823,650 5,190,922 29,868 9,984,704 235,603 Bonds premium 3,003,975 - 238,504 2,765,471 - Compensated absences payable - City 1,517,358 - 96,848 1,420,510 986,136 Asset retirement obligations 5,081,625 - - 5,081,625 - Net pension liability - IMRF* - 43,311 - 43,311 - OPEB liabilities 1,073,187 31,962 - 1,105,149 44,817 Subtotal other business-type activities liabilities 81,296,427 5,266,195 4,150,668 82,411,954 4,833,977 TOTAL BUSINESS-TYPE ACTIVITIES DEBT AND LIABILITIES $ 125,427,745 $ 5,266,195 $ 6,604,464 $ 124,089,476 $ 7,245,383 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. The change in compensated absences is reported net of increases and decreases. *In the prior fiscal year, the City reported an IMRF net pension asset. - 52 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) 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 2024. 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 2044. Annual principal and interest on the loans are expected to require $4,134,625 of net revenues for the fiscal year 2026. The total principal and interest remaining to be paid on the loans is $69,709,170. Principal and interest paid for the current period was $4,426,573 and the total customer net revenues w as $7,194,418 for the fiscal year. c. Business-Type Activities - WIFIA Loans Business-type activities WIFIA loans are payable from revenues derived from Water service fees. Proceeds from the loan provide financing for the 1909 Intake Replacement Project. The WIFIA loan is a 30 year loan with an interest rate of 2%. Annual principal and interest on the loan is deferred until 2026. The total principal and interest remaining to be paid on the loans is $13,394,348. No principal and interest was paid for the current period. d. 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 2026 $ 10,032,199 $ 4,792,440 $ 14,824,639 $ 2,411,406 $ 1,576,516 $ 3,987,922 2027 9,393,941 4,371,935 13,765,876 2,518,130 1,469,584 3,987,714 2028 8,787,897 3,973,380 12,761,277 2,619,854 1,364,688 3,984,542 2029 8,398,716 3,603,123 12,001,839 2,624,200 1,255,605 3,879,805 2030 8,250,369 3,294,609 11,544,978 2,787,102 1,152,041 3,939,143 2031-2035 39,046,970 11,997,225 51,044,195 13,282,560 4,207,748 17,490,308 2036-2040 28,484,710 5,589,840 34,074,550 11,394,270 1,925,482 13,319,752 2041-2045 12,635,000 1,147,400 13,782,400 4,040,000 412,000 4,452,000 TOTAL $ 125,029,802 $ 38,769,952 $ 163,799,754 $ 41,677,522 $ 13,363,664 $ 55,041,186 - 53 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) d. Debt Service Requirements (Continued) 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 2026 $ 3,567,421 $ 567,204 $ 4,134,625 2027 3,794,955 666,547 4,461,502 2028 3,524,033 766,070 4,290,103 2029 3,357,027 714,063 4,071,090 2030 3,407,124 663,965 4,071,089 2031-2035 16,965,749 2,546,352 19,512,101 2036-2040 16,253,336 1,327,444 17,580,780 2041-2045 8,864,468 418,047 9,282,515 2046-2047 2,277,071 28,294 2,305,365 TOTAL $ 62,011,184 $ 7,697,986 $ 69,709,170 The following schedule illustrates the annual debt service requirements to maturity for WIFIA Loans. Fiscal Year WIFIA Loans Ending Payable by Enterprise Funds December 31, Principal Interest Total 2026 $ 235,603 $ 99,847 $ 335,450 2027 240,315 194,982 435,297 2028 245,121 190,176 435,297 2029 250,023 185,273 435,296 2030 255,023 180,273 435,296 2031-2035 1,353,698 822,786 2,176,484 2036-2040 1,494,591 681,892 2,176,483 2041-2045 1,650,149 526,334 2,176,483 2046-2050 1,821,898 354,585 2,176,483 2051-2055 2,011,522 164,961 2,176,483 2056-2060 426,761 8,535 435,296 TOTAL $ 9,984,704 $ 3,409,644 $ 13,394,348 - 54 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) e. 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 useful lives of the intake pipelines to be 54 years. 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 $189,000 and recognized a $174,943 reduction in the related deferred inflow of resource. 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 $58,816 and recognized a $58,988 reduction in the related deferred inflow of resource. 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 $112,192 and recognized a $111,675 reduction in the related deferred inflow of resource. 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 $16,902 and recognized a $16,646 reduction in the related deferred inflow of resource. 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 $10,104 and recognized a $10,148 reduction in the related deferred inflow of resource. - 55 - 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 $59,365 and recognized a $56,610 reduction in the related deferred inflow of resource. 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 $35,735 and recognized a $64,791 reduction in the related deferred inflow of resource. The City entered into a lease arrangement on March 15, 2025 to lease commercial property. Payments of $3,000 are due to the City in monthly installments through March 15, 2027. The lease arrangement is noncancelable and maintains an interest rate of 2.867%. During the fiscal year, the City collected $30,000 and recognized a $27,874 reduction in the related deferred inflow of resource The cumulative remaining lease receivable and offsetting deferred inflow of resource s for these agreements is $4,973,367 and $4,632,966, respectively, as of December 31, 2025. 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 Garage, 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 Northwest Water Commission (NWWC) under a long-term water supply contract. Sale of potable water under this contract began on February 28, 1985 and continues until February 28, 2030. Under the terms of the current contract, the City is to supply NWWC sufficient potable Lake Michigan water to satisfy NWWC’s maximum 24-hour demands for Lake Michigan water for resale to NWWC’s customers. - 56 - 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 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 $2.06 per 1000 gallons as agreed upon in 2017. 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 2025 was $227,550 which includes an estimated allowance amount of $5,550. 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 2025 was $150,052 which includes an estimated allowance amount of $3,660. 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 2025 was $63,556 which includes an estimated allowance amount of $1,550. - 57 - 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 2025 was $691,875 which includes an estimated allowance amount of $16,875. g. Special Service District No. 10 On January 22, 2024, the City Council adopted Ordinance No. 03-O-24 established Special Service Area No. 10. Special Service District No. 10 comprises the contiguous area along Howard St from the CTA tracks to just west of Asbury Ave. 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 2025 was $100,035 which includes an estimated allowance amount of $2,440. 10. FUND EQUITY a. Restricted Net Position - Fiduciary Funds Police Pension Fund for employee pension benefits $ 236,847,584 Firefighters’ Pension Fund restrictions for employee pension benefits 154,409,166 TOTAL FIDUCIARY FUNDS $ 391,256,750 b. Assigned Fund Balances General Fund Assigned for Parks and Recreation programs $ 1,965,340 Assigned for Mayor’s program 93,679 Assigned for Public Safety programs 300,226 Other assignments 258,332 Assigned for subsequent year’s budget 11,994,210 Total general fund 14,611,787 TOTAL ASSIGNED FUND BALANCES $ 14,611,787 - 58 - 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. Settled claims have not exceeded this coverage in any of the past three fiscal years. 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, 2023 $ 1,360,750 $ 2,224,999 $ 3,585,749 New claims/estimate revisions 755,723 730,001 1,485,724 Claims payments (343,723) - (343,723) DECEMBER 31, 2024 1,772,750 2,955,000 4,727,750 New claims/estimate revisions 469,476 1,875,000 2,344,476 Claims payments (111,425) (1,130,000) (1,241,425) DECEMBER 31, 2025 $ 2,130,801 $ 3,700,000 $ 5,830,801 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) - 59 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. RISK MANAGEMENT (Continued) 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 exercis e any control over the activities of IPBC beyond its representation on the Board of Directors of the sub -pool. To obtain IPBC’s financial statements, contact the administrative offices of IPBC at 301 East Irving Park Road , Streamwood, Illinois 60107. 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 (the Agency) and in the interim financing of that Agency. The Agency was planned and developed by the Northwest Municipal Conference, of which the City is a member. The Agency is empowered to plan, finance, construct, and operate a solid waste disposal system. The Agency is a municipal joint action agency created as of May 2 , 1988 under the provisions of the Intergovernmental Cooperation Act (the Act), 5 ILCS 220/3.2. The Agency consists of 23 municipalities. The Agency is governed by a Board of Directors consisting of one official selected by each member community who serves a two -year term. Each director has one vote. The Board of Directors determines the general policies of the Agency. The Executive Committee of the Agency consists of seven persons elected by the Board of Directors. Each person is entitled to one vote. The Executive Committee may take action not specifically reserved to the Board of Directors by the Act, the Agency agreement, or the by- laws. - 60 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. JOINT VENTURES 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 retire es and their spouses at established contribution rates. b. Benefits Provided 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. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. 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 another postemployment benefit (OPEB) for the retirees, commonly referred to as an implicit rate subsidy. 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. - 61 - 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, 2024 (most recent information available), membership consisted of: Inactive fund members and beneficiaries currently receiving benefit payments 71 Inactive fund members entitled to but not yet receiving benefit payments 5 Active fund members 784 TOTAL 860 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 officers and firefighters, their dependents and their surviving spouses and dependent children if they were injured or killed in the line of duty during an emergency, ranging from $595 for single coverage to $2,134 for family coverage. For the year ended Decemb er 31, 2025, the estimated contribution to the plan is $874,958. The annual 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. - 62 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Actuarial Assumptions The total OPEB liability at December 31, 2025, as determined by an actuarial valuation as of December 31, 2024, was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified. The total OPEB liability was rolled forward by the actuary using updated procedures to December 31, 2025, including updating the discount rate, as noted below: Actuarial valuation date December 31, 2024 Measurement date December 31, 2025 Actuarial cost method Entry-age normal Assumptions Inflation 3.50% Discount rate 4.83% Healthcare cost trend rates 6.50% initial to an ultimate trend rate of 4.50% Asset valuation method N/A Probabilities of death for participants were according to PubS -2010 base rates projected Fully Generationally using scale MP2021 for Police and Fire. For all others, the PubG-2010 base rates projected Fully Generationally using scale MP2021 was used. 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, 2025. - 63 - 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, 2025 $ 21,570,807 Changes for the period Service cost 1,648,075 Interest 862,240 Changes in assumptions (1,630,903) Difference between expected and actual experience - Benefit payments (874,958) Other changes - Net changes 4,454 BALANCES AT DECEMBER 31, 2025 $ 21,575,261 There were changes in assumptions related to the discount in 20 25. The table presented above includes amounts for both the City and the Library. The City’s proportionate share of the total OPEB liability at December 31, 2025 was $21,030,192. The Library’s proportionate share of the total OPEB liability at December 31, 2025 was $545,069. 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 4.83% 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 one percentage point lower (3.83%) or one percentage point higher (5.83%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (3.83%) (4.83%) (5.83%) Total OPEB liability - City $ 23,214,241 $ 21,030,192 $ 19,101,462 Total OPEB liability - Library 601,676 545,069 495,079 TOTAL OPEB LIABILITY $ 23,815,917 $ 21,575,261 $ 19,596,541 - 64 - 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 6.50% as well as what the City’s total OPEB liability would be if it were calculated using a healthcare rate that is one percentage point lower (3.50% to 5.50%) or one percentage point higher (5.50% to 7.50%) than the current rate: 1% Decrease Current Healthcare Rate 1% Increase (3.50% to 5.50%) (4.50% to 6.50%) (5.50% to 7.50%) Total OPEB liability - City $ 18,470,911 $ 21,030,192 $ 24,138,194 Total OPEB liability - Library 478,737 545,069 625,623 TOTAL OPEB LIABILITY $ 18,949,648 $ 21,575,261 $ 24,763,817 i. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2025, the City recognized OPEB expense of $1,849,490. The Library’s share of OPEB expense was $47,936. At December 31, 2025, 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 $ - $ 6,603,611 $ - $ 171,155 $ - $ 6,774,766 Changes in assumption 3,006,958 2,732,052 77,936 70,810 3,084,894 2,802,862 TOTAL $ 3,006,958 $ 9,335,663 $ 77,936 $ 241,965 $ 3,084,894 $ 9,577,628 - 65 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. OTHER POSTEMPLOYMENT BENEFITS (Continued) i. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) 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, 2026 $ (612,889) 2027 (612,889) 2028 (612,889) 2029 (537,406) 2030 (671,360) Thereafter (3,445,301) TOTAL $ (6,492,734) 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 reported as of and for the year ended December 31, 2025: (City’s share) Police Firefighters’ IMRF Pension Pension Total Net pension liability $ 240,401 $ 91,973,147 $ 90,698,955 $ 182,912,503 Deferred outflows of resources 15,497,909 18,892,993 14,128,007 48,518,909 Deferred inflows of resources 156,581 25,779,509 12,791,367 38,727,457 Pension expense 9,840,221 12,894,364 11,516,631 34,251,216 - 66 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) 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. 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, 2025 was 3.90% of covered payroll. Plan Membership At December 31, 2024, IMRF membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 752 Inactive employees entitled to but not yet receiving benefits 494 Active employees 601 TOTAL 1,847 - 67 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Long-Term Expected Rate of Return The long-term expected rate of return on pension plan 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 expense, 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 to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class for both IMRF and SLEP are summarized in the following table . Asset Class Portfolio Target Percentage Long-Term Expected Real Rate of Return Domestic equity 33.50% 4.35% International equity 18.00% 5.40% Fixed income 24.50% 5.20% Real estate 10.50% 6.40% Alternative investments 12.50% 4.85% to 6.25% Cash equivalents 1.00% 3.60% TOTAL 100.00% Actuarial Assumptions The City’s net pension liability was measured as of December 31, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of the same date using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2024 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 - 68 - 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) The City has elected to report the data from the prior year IMRF valuation date due to when the current year valuation and audited financial statements become available. For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male (adjusted 108.0%) and Female (adjusted 106.4%) tables and future mortality improvements projected using scale MP -2021. 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-2021. 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 -2021. 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 co ntribution 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. - 69 - 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, 2024 $ 296,356,862 $ 297,943,250 $ (1,586,388) Changes for the period Service cost 4,145,550 - 4,145,550 Interest 20,990,933 - 20,990,933 Difference between expected and actual experience 5,913,719 - 5,913,719 Changes in assumptions - - - Employer contributions - 1,523,964 (1,523,964) Employee contributions - 2,337,261 (2,337,261) Net investment income - 29,421,077 (29,421,077) Benefit payments and refunds (17,799,048) (17,799,048) - Other (net transfer) - (4,084,491) 4,084,491 Net changes 13,251,154 11,398,763 1,852,391 BALANCES AT DECEMBER 31, 2024 $ 309,608,016 $ 309,342,013 $ 266,003 The table presented above includes amounts for both the City and the Library. The City’s proportionate share of the net pension liability (asset) at January 1, 2024, the employer contributions, and the net pension liability at December 31, 2025 was $(1,437,743), $1,377,286, and $240,401, respectively. The Library’s proportionate share of the net pension liability at January 1, 2024, the employer contributions and the net pension liability at December 31, 2025 was $(148,645), $146,678, and $25,602, respectively. - 70 - 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, 2025, the City recognized pension expense of $9,840,221. The Library recognized net pension expense of $977,505. At December 31, 2025, 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 $ 6,745,739 $ 44,076 $ 718,405 $ 4,694 $ 7,464,144 $ 48,770 Changes in assumption - 112,505 - 11,982 - 124,487 Net difference between projected and actual earnings on pension plan investments 6,463,924 - 688,393 - 7,152,317 - Employer contributions subsequent to the measurement date 2,288,246 - 243,693 - 2,531,939 - TOTAL $ 15,497,909 $ 156,581 $ 1,650,491 $ 16,676 $ 17,148,400 $ 173,257 $2,531,939 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 reporti ng year ending December 31, 2026. 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 2026 $ 7,251,180 $ 772,234 $ 8,023,414 2027 10,801,024 1,150,283 11,951,307 2028 (3,467,533) (369,284) (3,836,817) 2029 (1,531,589) (163,111) (1,694,700) 2030 - - - Thereafter - - - TOTAL $ 13,053,082 $ 1,390,122 $ 14,443,204 - 71 - 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 one percentage point lower (6.25%) or one 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 $ 30,799,985 $ 240,401 $ (24,148,548) Library 3,280,126 25,602 (2,571,763) TOTAL $ 34,080,111 $ 266,003 $ (26,720,311) 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. - 72 - 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, 2025, the Police Pension Plan membership consisted of: Inactive plan members currently receiving benefits 205 Inactive plan members entitled to but not yet receiving benefits 26 Active plan members 144 TOTAL 375 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 $113,645, 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 - 73 - 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) of service over 20 years up to 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 Plan. However, the City has elected to fund 100% of the past service cost by 2040. The City’s contribution was 76.63% of covered payroll for the year ended December 31, 2025. Illinois Police Officers’ Pension Investment Fund The Illinois Police Officers’ Pension Investment Fund (IPOPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate police pension funds. IPOPIF 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 partici pating pension funds as defined in 40 ILCS 5/22B-105. Participation in IPOPIF by Illinois suburban and downstate police pension funds is mandatory. - 74 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Deposits with Financial Institutions The plan retains all of its available cash with two financial institutions. 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 IPOPIF 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 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. Investments Investments of the plan are combined in a commingled external investment pool and held by IPOPIF. A schedule of investment expenses is included in IPOPIF’s annual report. For additional information on IPOPIF’s investments, please refer to their annual report. A copy of that report can be obtained from IPOPIF at 456 Fulton Street, Suite 402, Peoria, IL 61602 or at www.ipopif.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, 2025. - 75 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Net Asset Value The Net Asset Value (NAV) of the plan’s pooled investment in IPOPIF was $229,524,792 at December 31, 2025. The pooled investments consist of the investments as noted in the target allocation table below. Investments in IPOPIF are valued at IPOPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at December 31, 2025. The plan may redeem shares with a seven calendar day notice. IPOPIF may, at its sole discretion and based on circumstances, process redemption requests with fewer than a seven calendar day notice. Regular redemptions of the same amount on a particular day of the month may be arranged with IPOPIF. Investment Policy IPOPIF’s investment policy was originally adopted by the Board of Trustees on December 17, 2021. IPOPIF has the authority to invest trust fund assets in any type of security subject to the requirements and restrictions set forth in the Illinois Pension Code and is not restricted by the Pension Code sections that pertain exclusively to the Article 3 participating police pension funds. IPOPIF shall be subject to the provisions of the Illinois Pension Code including, but not limited to, utilization of emergi ng investment managers and utilization of businesses owned by minorities, women and persons with disabilities. Investment Rate of Return For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense , was 17.79%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. - 76 - 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 (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2025 $ 316,006,264 $ 201,250,220 $ 114,756,044 Changes for the period Service cost 4,400,226 - 4,400,226 Interest 20,284,275 - 20,284,275 Difference between expected and actual experience 4,587,273 - 4,587,273 Changes in assumptions - - - Changes of benefit terms - - - Employer contributions - 15,213,458 (15,213,458) Employee contributions - 1,971,429 (1,971,429) Buy back contributions 224,144 224,144 - Net investment income - 34,940,289 (34,940,289) Benefit payments and refunds (16,681,451) (16,681,451) - Administrative expense - (70,505) 70,505 Net changes 12,814,467 35,597,364 (22,782,897) BALANCES AT DECEMBER 31, 2025 $ 328,820,731 $ 236,847,584 $ 91,973,147 The plan’s fiduciary net position as a percentage of the total pension liability was 72.03% at December 31, 2025. - 77 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2025, using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2025 Measurement date December 31, 2025 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- 2021. 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 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. - 78 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) 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 Plan calculated using the discount rate of 6.50% as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one 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 $ 137,283,426 $ 91,973,147 $ 55,062,239 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2025, the City recognized police pension expense of $12,894,364. At December 31, 2025, 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 $ 18,072,588 $ 718,964 Changes in assumption 820,405 - Net difference between projected and actual earnings on pension plan investments - 25,060,545 TOTAL $ 18,892,993 $ 25,779,509 - 79 - 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 (Continued) 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, 2026 $ 5,837,652 2027 (2,810,508) 2028 (6,463,581) 2029 (3,450,079) 2030 - Thereafter - TOTAL $ (6,886,516) 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. - 80 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Plan Membership At December 31, 2025, the Firefighters’ Pension Plan membership consisted of: Inactive plan members currently receiving benefits 148 Inactive plan members entitle to but not yet receiving benefits 9 Active plan members 112 TOTAL 269 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 re tirement 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 a ge 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 firefighter 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 $113,645, 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 - 81 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Benefits Provided (Continued) 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. 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 89.52% of covered payroll for the year ended December 31, 2025. 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. - 82 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) 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 marke t value of the deposits. The collateral will be held in a safekeeping by a third party a nd evidenced by a written agreement. 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. 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, 2025. - 83 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Net Asset Value The NAV of the plan’s pooled investment in IFPIF was $148,981,339 at December 31, 2025. 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, 2025. The plan may redeem shares by giving notice by 5:00 pm central time on the 1 st of each month. Requests properly submitted on or before the 1st of each month will be processed for redemption by the 14 th 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 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. Investment Rate of Return For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 17.55%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. - 84 - 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 (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2025 $ 235,477,368 $ 129,409,918 $ 106,067,450 Changes for the period Service cost 3,788,754 - 3,788,754 Interest 15,161,240 - 15,161,240 Changes in benefit terms - - - Difference between expected and actual experience 2,713,315 - 2,713,315 Changes in assumptions - - - Employer contributions - 13,298,621 (13,298,621) Employee contributions - 1,404,511 (1,404,511) Net investment income - 22,606,465 (22,606,465) Benefit payments and refunds (12,032,556) (12,032,556) - Administrative expense - (277,793) 277,793 Net changes 9,630,753 24,999,248 (15,368,495) BALANCES AT DECEMBER 31, 2025 $ 245,108,121 $ 154,409,166 $ 90,698,955 The plan’s fiduciary net position as a percentage of the total pension liability w as 63.00% at December 31, 2025. - 85 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation performed as of December 31, 2025 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2025 Measurement date December 31, 2025 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-2021 applied on a fully generational basis. 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 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 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. - 86 - CITY OF EVANSTON, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 15. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) 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 Plan calculated using the discount rate of 6.50% as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one 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 $ 124,520,900 $ 90,698,955 $ 63,084,308 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2025, the City recognized firefighters ’ pension expense of $11,516,631. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to the firefighters’ pension from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 12,068,573 $ - Changes in assumption 2,059,434 - Net difference between projected and actual earnings on pension plan investments - 12,791,367 TOTAL $ 14,128,007 $ 12,791,367 - 87 - 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 (Continued) 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, 2026 $ 3,551,750 2027 (1,359,898) 2028 (966,391) 2029 (341,040) 2030 452,219 Thereafter - TOTAL $ 1,336,640 - 88 - 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 $ 3,081,893 $ 1,485,979 $ 4,567,872 Investments Investments held in the Illinois Firefighters’ Pension Investment Fund - 148,981,339 148,981,339 Investments held in the Illinois Police Pension Investment Fund 229,524,792 - 229,524,792 Prepaid items - 9,334 9,334 Receivables Accounts - 3,123 3,123 Accrued interest - 948 948 Due from City 4,240,899 3,932,378 8,173,277 Total assets 236,847,584 154,413,101 391,260,685 LIABILITIES Accounts payable - 3,935 3,935 Total liabilities - 3,935 3,935 NET POSITION HELD IN TRUST FOR PENSION BENEFITS $ 236,847,584 $ 154,409,166 $ 391,256,750 - 89 - 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 $ 15,213,458 $ 13,298,621 $ 28,512,079 Plan members 1,971,429 1,404,511 3,375,940 Total contributions 17,184,887 14,703,132 31,888,019 Investment income Net appreciation in fair value of investments 33,891,929 19,936,020 53,827,949 Interest 1,247,807 2,792,604 4,040,411 Total investment income 35,139,736 22,728,624 57,868,360 Less investment expense (199,447) (122,159) (321,606) Net investment income 34,940,289 22,606,465 57,546,754 Total additions 52,125,176 37,309,597 89,434,773 DEDUCTIONS Administrative 70,505 277,793 348,298 Benefits and refunds 16,457,307 12,032,556 28,489,863 Total deductions 16,527,812 12,310,349 28,838,161 NET INCREASE 35,597,364 24,999,248 60,596,612 NET POSITION HELD IN TRUST FOR PENSION BENEFITS January 1 201,250,220 129,409,918 330,660,138 December 31 $ 236,847,584 $ 154,409,166 $ 391,256,750 - 90 - 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 investment of public funds using “prudent person” standard for managing the overall portfolio. It may be noted though that the Library has investments in equities which is not permissible under the state statutes. Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The exposure to interest rate risk can be limited by structuring the portfolio to provide liquidity for cash requirements for ongoing opera tions in shorter term securities. - 91 - 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 minimize the potential losses on individual investment by diversifying the investment portfolio , not permitting the investment in certain high risk securities. State law limits investments in commercial paper, corporate bonds, and mutual bonds funds to the top two ratings issued by nationally recognized statistical rating organizations. 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. 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 such 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 depo sit and U.S. 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 , 2025, all of the Library’s deposits were insured or collateralized by an agent of the Library in the Library’s name. - 92 - 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, 2025, 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 22,093,086 - - 22,093,086 Office equipment and furniture 2,285,009 - - 2,285,009 Infrastructure 335,781 - - 335,781 Total capital assets being depreciated/amortized 24,713,876 - - 24,713,876 Less accumulated depreciation/amortization for: Buildings and improvements 12,286,449 687,254 - 12,973,703 Office equipment and furniture 2,285,009 - - 2,285,009 Infrastructure 245,762 11,807 - 257,569 Total accumulated depreciation/amortization 14,817,220 699,061 - 15,516,281 Total capital assets being depreciated/amortized, net 9,896,656 (699,061) - 9,197,595 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 10,208,036 $ (699,061) $ - $ 9,508,975 - 93 - 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, 2025 was as follows: Interest Rate Final Maturity Date Balance January 1 Issued Payments Balance December 31 Due Within One Year General obligation debt Series 2013B 2.00%-3.00% 12/1/2025 $ 29,202 $ - $ 29,202 $ - $ - Series 2016A 2.00%-4.00% 12/1/2036 440,000 - 30,000 410,000 35,000 Series 2017A 3.00%-4.00% 12/1/2037 1,010,000 - 65,000 945,000 65,000 Series 2017B 4.00%-5.00% 12/1/2027 232,531 - 75,361 157,170 77,376 Series 2018B 2.29%-5.00% 12/1/2038 1,892,457 - 99,474 1,792,983 104,386 Series 2019B 1.66%-2.68% 12/1/2039 1,528,569 - 71,046 1,457,523 74,634 Total general obligation debt 5,132,759 - 370,083 4,762,676 356,396 Bonds premiums 403,041 - 32,991 370,050 - Total OPEB Liability 541,543 3,526 - 545,069 22,105 Net pension liability - IMRF* - 25,602 - 25,602 - Compensated absences payable 700,022 - 4,282 695,740 340,818 TOTAL LONG-TERM DEBT $ 6,777,365 $ 29,128 $ 407,356 $ 6,399,137 $ 719,319 The change in compensated absences is reported net of increases and decreases. *In the prior fiscal year, the Library reported an IMRF net pension asset. Debt service requirements to maturity are as follows: Fiscal Year Ending December 31, Principal Interest Total 2026 $ 356,396 $ 191,425 $ 547,821 2027 372,929 176,153 549,082 2028 302,249 160,055 462,304 2029 317,081 147,392 464,473 2030 327,528 134,045 461,573 2031-2035 1,845,470 463,238 2,308,708 2036-2040 1,241,023 111,988 1,353,011 TOTAL $ 4,762,676 $ 1,384,296 $ 6,146,972 - 94 - 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 statements 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 for purposes of actuarial valuation. 18. RESTATEMENTS - CHANGES WITHIN REPORTING ENTITY The City’s beginning balances were adjusted due to a change within the reporting entity as follows: Reporting Units Affected by Restatements of Beginning Balance ARPA Fund Nonmajor Governmental Funds FUND BALANCE, DECEMBER 31, 2024, AS PREVIOUSLY REPORTED $ 1,392,844 $ 30,790,582 Change within reporting entity (1,392,844) 1,392,844 FUND BALANCE, DECEMBER 31, 2024, AS RESTATED $ - $ 32,183,426 The change within the reporting entity was made to present the ARPA Fund, which was previously reported as a major fund of the City, as a Nonmajor Governmental Fund. 19. SUBSEQUENT EVENTS On June 9, 2026, the City issued $29,010,000 General Obligation Corporate Purpose Bonds, Series 2026, of the City of Evanston, to finance capital improvements and refinance Series 2013A Bonds. - 95 - REQUIRED SUPPLEMENTARY INFORMATION Original Final Budget Budget Actual Variance REVENUES Taxes 78,154,902$ 78,154,902$ 80,681,316$ 2,526,414$ Licenses and permits 11,572,300 11,572,300 17,580,349 6,008,049 Intergovernmental 17,716,334 17,716,334 18,073,617 357,283 Charges for services 14,961,709 14,961,709 14,515,400 (446,309) Fines and forfeits 3,998,000 3,998,000 4,286,229 288,229 Investment income 750,000 750,000 2,365,741 1,615,741 Miscellaneous 13,778,000 13,778,000 2,978,395 (10,799,605) Total revenues 140,931,245 140,931,245 140,481,047 (450,198) EXPENDITURES Current General management and support 28,009,861 28,270,486 29,523,174 1,252,688 Public safety 83,709,050 89,348,425 88,581,374 (767,051) Public works 16,350,871 16,350,871 16,202,431 (148,440) Health and human services development 1,969,411 1,969,411 1,909,490 (59,921) Recreation and cultural opportunities 15,585,980 15,585,980 15,931,458 345,478 Housing and economic development 5,078,230 5,078,230 4,594,776 (483,454) Total expenditures 150,703,403 156,603,403 156,742,703 139,300 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (9,772,158) (15,672,158) (16,261,656) (589,498) OTHER FINANCING SOURCES (USES) Transfers in 10,381,740 10,381,740 10,076,736 (305,004) Transfers (out)(575,000) (575,000) (374,996) 200,004 Total other financing sources (uses)9,806,740 9,806,740 9,701,740 (105,000) NET CHANGE IN FUND BALANCE 34,582$ (5,865,418)$ (6,559,916) (694,498)$ FUND BALANCE, JANUARY 1 49,020,653 FUND BALANCE, DECEMBER 31 42,460,737$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 96 - MEASUREMENT DATE DECEMBER 31, 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL OPEB LIABILITY Service cost 1,050,028$ 974,443$ 1,249,550$ 1,544,418$ 1,613,298$ 1,829,446$ 2,007,380$ 1,648,075$ Interest 630,168 733,796 593,787 442,412 434,590 862,905 900,936 862,240 Benefit changes - - (53,511) - - - - - Differences between expected and actual experience - - (2,856,275) - (2,081,084) - (4,892,979) (1,630,903) Changes in assumptions (1,272,525) 2,879,775 2,471,462 370,681 (1,428,232) 754,687 107,608 - Benefit payments (797,159) (860,932) (925,502) (827,885) (890,214) (812,414) (899,265) (874,958) Other changes - - - - - - - - Net change in total OPEB liability (389,488) 3,727,082 479,511 1,529,626 (2,351,642) 2,634,624 (2,776,320) 4,454 Total OPEB liability - beginning 18,717,414 18,327,926 22,055,008 22,534,519 24,064,145 21,712,503 24,347,127 21,570,807 TOTAL OPEB LIABILITY - ENDING 18,327,926$ 22,055,008$ 22,534,519$ 24,064,145$ 21,712,503$ 24,347,127$ 21,570,807$ 21,575,261$ Covered-employee payroll 59,333,084$ 60,964,744$ 59,251,377$ 61,325,175$ 61,334,086$ 63,480,779$ 80,841,130$ 83,670,569$ Employer's total OPEB liability as a percentage of covered-employee payroll 30.89%36.18%38.03%39.24%35.40%38.35%26.68%25.79% 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 2025. There was a change in assumptions related to the discount rate and healthcare rend rates in 2024. There was a change in assumptions related to the discount rate in 2023. 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. 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. 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. CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB LIABILITY AND RELATED RATIOS OTHER POSTEMPLOYMENT BENEFIT PLAN Last Eight Fiscal Years (See independent auditor's report.) - 97 - FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Actuarially determined contribution 3,882,629$ 3,695,564$ 3,634,209$ 2,379,845$ 3,235,547$ 3,245,589$ 2,000,416$ 1,560,298$ 1,510,672$ 2,531,939$ Contributions in relation to the actuarially determined contribution 3,963,856 3,702,271 3,634,209 2,379,845 3,235,547 3,245,589 2,000,416 1,560,298 1,510,672 2,531,939 CONTRIBUTION DEFICIENCY (Excess)(81,227)$ (6,707)$ -$ -$ -$ -$ -$ -$ -$ -$ Percentage contributed 102.09%100.18%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% Covered payroll 37,477,116$ 37,480,368$ 38,519,776$ 38,103,750$ 37,019,990$ 40,098,516$ 41,244,660$ 47,138,914$ 52,369,909$ 64,873,841$ Contributions as a percentage of covered payroll 10.58%9.88%9.43%6.25%8.74%8.09%4.85%3.31%2.88%3.90% Notes to the Required Supplemental Information CITY OF EVANSTON, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND Last Ten 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 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 2.75% to 13.75% annually, and postretirement benefit increases of 2.75% compounded annually. (See independent auditor's report.) - 98 - FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Actuarially determined contribution 9,380,940$ 10,237,200$ 10,462,704$ 10,502,308$ 11,225,650$ 11,431,461$ 11,194,538$ 11,548,482$ 13,215,001$ 15,785,426$ Contributions in relation to the actuarially determined contribution 9,450,824 10,300,549 10,462,704 10,502,308 11,225,650 11,501,791 11,405,076 13,544,556 13,215,672 15,213,458 CONTRIBUTION DEFICIENCY (Excess)(69,884)$ (63,349)$ -$ -$ -$ (70,330)$ (210,538)$ (1,996,074)$ (671)$ 571,968$ Percentage contributed 100.74%100.62%100.00%100.00%100.00%100.62%101.88%117.28%100.01%96.38% Covered payroll 17,474,672$ 15,352,846$ 15,845,701$ 15,980,131$ 15,368,002$ 15,371,756$ 13,396,912$ 17,265,863$ 17,319,526$ 19,851,887$ Contributions as a percentage of covered payroll 54.08%67.09%66.03%65.72%73.05%74.82%85.13%78.45%76.31%76.63% Notes to the Required Supplemental Information CITY OF EVANSTON, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND Last Ten 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 16 years;the asset valuation method was five-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 - FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Actuarially determined contribution 7,350,865$ 8,148,709$ 8,344,947$ 8,266,584$ 9,247,042$ 9,626,778$ 9,528,524$ 11,793,978$ 12,355,183$ 13,810,918$ Contributions in relation to the actuarially determined contribution 7,396,641 8,205,800 8,344,947 8,266,584 9,257,516 9,670,974 9,707,213 12,020,942 12,355,183 13,298,621 CONTRIBUTION DEFICIENCY (Excess)(45,776)$ (57,091)$ -$ -$ (10,474)$ (44,196)$ (178,689)$ (226,964)$ -$ 512,297$ Percentage contributed 100.62%100.70%100.00%100.00%100.11%100.46%101.88%101.92%100.00%96.29% Covered payroll 10,546,779$ 10,311,920$ 11,618,255$ 10,341,544$ 10,428,768$ 11,012,470$ 11,523,258$ 13,222,940$ 14,284,305$ 14,854,691$ Contributions as a percentage of covered payroll 70.13%79.58%71.83%79.94%88.77%87.82%84.24%90.91%86.49%89.52% Notes to the Required Supplemental Information CITY OF EVANSTON, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS' PENSION FUND Last Ten 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 16 years;the asset valuation method was five-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.) - 100 - MEASUREMENT DATE DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOTAL PENSION LIABILITY Service cost 3,910,996$ 3,951,687$ 3,970,214$ 3,671,434$ 3,926,313$ 3,850,771$ 3,420,369$ 3,688,135$ 3,824,107$ 4,145,550$ Interest 16,235,086 16,947,408 17,355,320 17,185,510 17,812,836 18,314,051 18,507,004 19,445,021 19,885,915 20,990,933 Changes in benefit terms - - - - - - - - - - Differences between expected and actual experience 1,465,442 (2,905,680) (2,489,328) 2,992,302 (166,989) (2,056,346) 6,705,189 (635,408) 9,012,648 5,913,719 Changes of assumptions 266,906 (269,039) (7,652,648) 6,567,349 - (1,993,968) - - (316,479) - Benefit payments, including refunds of member contributions (11,928,345) (12,270,564) (12,922,439) (13,674,160) (14,305,617) (14,936,529) (15,539,235) (16,117,334) (16,851,528) (17,799,048) Net change in total pension liability 9,950,085 5,453,812 (1,738,881) 16,742,435 7,266,543 3,177,979 13,093,327 6,380,414 15,554,663 13,251,154 Total pension liability - beginning 220,476,485 230,426,570 235,880,382 234,141,501 250,883,936 258,150,479 261,328,458 274,421,785 280,802,199 296,356,862 PLAN FIDUCIARY NET POSITION 230,426,570$ 235,880,382$ 234,141,501$ 250,883,936$ 258,150,479$ 261,328,458$ 274,421,785$ 280,802,199$ 296,356,862$ 309,608,016$ PLAN FIDUCIARY NET POSITION Contributions - employer 4,018,268$ 3,963,856$ 3,702,271$ 3,634,209$ 2,379,845$ 3,235,547$ 3,245,589$ 2,000,416$ 1,560,298$ 1,523,964$ Contributions - member 1,767,523 1,705,636 1,693,912 1,847,906 1,845,576 1,684,700 1,806,941 1,891,800 2,204,956 2,337,261 Net investment income 1,062,353 14,441,739 39,438,193 (14,090,715) 43,379,549 37,552,547 49,648,106 (42,076,770) 30,319,316 29,421,077 Benefit payments, including refunds of member contributions (11,928,345) (12,270,564) (12,922,439) (13,674,160) (14,305,617) (14,936,529) (15,539,235) (16,117,334) (16,851,528) (17,799,048) Administrative expense/other 737,427 (142,981) (4,817,948) 3,915,577 647,604 1,390,447 (1,512,861) (537,476) 7,403,741 (4,084,491) Net change in plan fiduciary net position (4,342,774) 7,697,686 27,093,989 (18,367,183) 33,946,957 28,926,712 37,648,540 (54,839,364) 24,636,783 11,398,763 Plan fiduciary net position - beginning 215,541,904 211,199,130 218,896,816 245,990,805 227,623,622 261,570,579 290,497,291 328,145,831 273,306,467 297,943,250 PLAN FIDUCIARY NET POSITION - ENDING 211,199,130$ 218,896,816$ 245,990,805$ 227,623,622$ 261,570,579$ 290,497,291$ 328,145,831$ 273,306,467$ 297,943,250$ 309,342,013$ EMPLOYER'S NET PENSION LIABILITY (ASSET)19,227,440$ 16,983,566$ (11,849,304)$ 23,260,314$ (3,420,100)$ (29,168,833)$ (53,724,046)$ 7,495,732$ (1,586,388)$ 266,003$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS ILLINOIS MUNICIPAL RETIREMENT FUND Last Ten Fiscal Years - 101 - MEASUREMENT DATE DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Plan fiduciary net position as a percentage of the total pension liability (asset)91.66%92.80%105.06%90.73%101.32%111.16%119.58%97.33%100.54%99.91% Covered payroll 37,703,487$ 37,477,116$ 37,480,368$ 38,519,776$ 38,103,750$ 37,019,990$ 40,098,516$ 41,244,660$ 47,138,914$ 52,369,909$ Employer's net pension liability as a percentage of covered payroll 51.00%45.32%(31.61%)60.39%(8.98%)(78.79%)(133.98%)18.17%(3.37%)0.51% There was a change in assumptions related to mortality and other demographic assumptions in 2023. 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. The information above is presented for the City and Library in total. 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. (See independent auditor's report.) - 102 - MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL PENSION LIABILITY Service cost 3,679,212$ 3,993,751$ 4,285,425$ 3,980,758$ 4,018,178$ 3,842,941$ 3,614,698$ 3,574,325$ 4,158,038$ 4,400,226$ Interest 13,192,680 14,088,889 14,433,770 15,128,398 16,138,601 16,648,988 17,149,791 17,900,355 18,095,141 20,284,275 Changes in benefit terms - - - 853,365 - - - - - - Differences between expected and actual experience (3,214,201) 424,390 3,079,328 4,364,013 2,021,226 3,025,037 2,912,380 (2,875,856) 27,640,583 4,587,273 Changes of assumptions 11,039,027 7,096,300 (7,459,427) 4,127,403 - - 4,102,024 - - - Buy back contributions - - - - - - - - - 224,144 Benefit payments, including refunds of member contributions (10,970,916) (11,475,943) (11,937,685) (12,522,660) (13,376,879) (14,924,443) (16,243,656) (16,139,127) (16,232,508) (16,681,451) Net change in total pension liability 13,725,802 14,127,387 2,401,411 15,931,277 8,801,126 8,592,523 11,535,237 2,459,697 33,661,254 12,814,467 Total pension liability - beginning 204,770,550 218,496,352 232,623,739 235,025,150 250,956,427 259,757,553 268,350,076 279,885,313 282,345,010 316,006,264 TOTAL PENSION LIABILITY - ENDING 218,496,352$ 232,623,739$ 235,025,150$ 250,956,427$ 259,757,553$ 268,350,076$ 279,885,313$ 282,345,010$ 316,006,264$ 328,820,731$ PLAN FIDUCIARY NET POSITION Contributions - employer 9,450,824$ 10,300,549$ 10,462,704$ 10,502,308$ 11,225,650$ 11,501,791$ 11,405,076$ 13,544,556$ 13,215,672$ 15,213,458$ Contributions - member 1,731,740 1,521,467 1,570,309 1,583,631 1,522,969 1,523,341 1,327,634 1,711,047 1,716,365 1,971,429 Net investment income 7,544,856 15,240,680 (4,911,053) 25,043,593 17,521,008 26,382,486 (28,069,391) 26,066,421 26,540,549 34,940,289 Benefit payments, including refunds of member contributions (10,970,916) (11,475,943) (11,937,685) (12,522,660) (13,376,879) (14,924,443) (16,243,656) (16,139,127) (16,232,508) (16,457,307) Administrative expense (123,796) (148,631) (58,885) (52,088) (66,152) (44,442) (44,775) (61,015) (61,798) (70,505) Net change in plan fiduciary net position 7,632,708 15,438,122 (4,874,610) 24,554,784 16,826,596 24,438,733 (31,625,112) 25,121,882 25,178,280 35,597,364 Plan fiduciary net position - beginning 98,558,837 106,191,545 121,629,667 116,755,057 141,309,841 158,136,437 182,575,170 150,950,058 176,071,940 201,250,220 PLAN FIDUCIARY NET POSITION - ENDING 106,191,545$ 121,629,667$ 116,755,057$ 141,309,841$ 158,136,437$ 182,575,170$ 150,950,058$ 176,071,940$ 201,250,220$ 236,847,584$ EMPLOYER'S NET PENSION LIABILITY 112,304,807$ 110,994,072$ 118,270,093$ 109,646,586$ 101,621,116$ 85,774,906$ 128,935,255$ 106,273,070$ 114,756,044$ 91,973,147$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND Last Ten Fiscal Years - 103 - MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Plan fiduciary net position as a percentage of the total pension liability 48.60%52.29%49.68%56.31%60.88%68.04%53.93%62.36%63.69%72.03% Covered payroll 17,474,672$ 15,352,846$ 15,845,701$ 15,980,131$ 15,368,002$ 15,371,756$ 13,396,912$ 17,265,863$ 17,319,526$ 19,851,887$ Employer's net pension liability as a percentage of covered payroll 642.67%722.95%746.39%686.14%661.25%558.00%962.43%615.51%662.58%463.30% For the measurement date December 31, 2022, there were changes in assumptions related to the mortality tables. The discount rate used in the valuation dated December 31, 2017 is 6.25%. 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%. (See independent auditor's report.) - 104 - MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL PENSION LIABILITY Service cost 2,731,257$ 2,813,961$ 3,026,223$ 2,763,258$ 2,948,710$ 2,739,481$ 2,889,155$ 2,964,280$ 3,743,916$ 3,788,754$ Interest 9,922,911 10,507,435 10,741,734 11,061,538 12,013,035 12,303,886 12,731,909 13,451,766 13,984,665 15,161,240 Changes in benefit terms - - - 799,936 - - - - - - Differences between expected and actual experience (3,239,221) 368,761 384,928 5,218,449 122,642 2,117,644 288,722 2,475,375 12,180,910 2,713,315 Changes of assumptions 7,971,672 5,192,584 (6,192,362) 4,549,731 - - 6,178,299 - - - Benefit payments, including refunds of member contributions (8,343,940) (8,609,369) (9,150,830) (9,624,766) (10,255,160) (10,545,893) (10,905,542) (11,271,448) (11,673,780) (12,032,556) Net change in total pension liability 9,042,679 10,273,372 (1,190,307) 14,768,146 4,829,227 6,615,118 11,182,543 7,619,973 18,235,711 9,630,753 Total pension liability - beginning 154,100,886 163,143,565 173,416,937 172,226,630 186,994,776 191,824,023 198,439,141 209,621,684 217,241,657 235,477,368 TOTAL PENSION LIABILITY - ENDING 163,143,565$ 173,416,937$ 172,226,630$ 186,994,776$ 191,824,023$ 198,439,141$ 209,621,684$ 217,241,657$ 235,477,368$ 245,108,121$ PLAN FIDUCIARY NET POSITION Contributions - employer 7,396,641$ 8,205,800$ 8,344,947$ 8,266,584$ 9,257,516$ 9,670,974$ 9,707,213$ 12,020,942$ 12,355,183$ 13,298,621$ Contributions - member 997,198 974,992 1,098,506 954,112 986,040 1,041,229 1,089,524 1,250,229 1,350,581 1,404,511 Net investment income 3,894,765 7,974,296 (3,478,827) 14,527,581 11,387,655 13,515,733 (15,351,364) 13,855,947 12,712,777 22,606,465 Benefit payments, including refunds of member contributions (8,343,940) (8,609,369) (9,150,830) (9,624,766) (10,255,160) (10,545,893) (10,905,542) (11,271,448) (11,673,780) (12,032,556) Administrative expense (85,750) (72,640) (105,755) (97,588) (148,979) (123,642) (86,309) (115,507) (121,042) (277,793) Net change in plan fiduciary net position 3,858,914 8,473,079 (3,291,959) 14,025,923 11,227,072 13,558,401 (15,546,478) 15,740,163 14,623,719 24,999,248 Plan fiduciary net position - beginning 66,741,084 70,599,998 79,073,077 75,781,118 89,807,041 101,034,113 114,592,514 99,046,036 114,786,199 129,409,918 PLAN FIDUCIARY NET POSITION - ENDING 70,599,998$ 79,073,077$ 75,781,118$ 89,807,041$ 101,034,113$ 114,592,514$ 99,046,036$ 114,786,199$ 129,409,918$ 154,409,166$ EMPLOYER'S NET PENSION LIABILITY 92,543,567$ 94,343,860$ 96,445,512$ 97,187,735$ 90,789,910$ 83,846,627$ 110,575,648$ 102,455,458$ 106,067,450$ 90,698,955$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION FUND Last Ten Fiscal Years - 105 - MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Plan fiduciary net position as a percentage of the total pension liability 43.27%45.60%44.00%48.03%52.67%57.75%47.25%52.84%54.96%63.00% Covered payroll 10,546,779$ 10,311,920$ 11,618,255$ 10,341,544$ 10,428,768$ 11,012,470$ 11,523,258$ 13,222,940$ 14,284,305$ 14,854,691$ Employer's net pension liability as a percentage of covered payroll 877.46%914.90%830.12%939.78%870.57%761.38%959.59%774.83%742.55%610.57% For the measurement date December 31, 2022, there were changes in assumptions related to the mortality tables. The discount rate used in the valuation dated December 31, 2017 is 6.25%. 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%. (See independent auditor's report.) - 106 - FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual money-weighted rate of return, net of investment expense 6.90%14.25%(5.20%)21.13%12.88%16.65%(16.78%)15.06%13.47%17.79% CITY OF EVANSTON, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND Last Ten Fiscal Years (See independent auditor's report.) - 107 - FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual money-weighted rate of return, net of investment expense 5.90%11.42%(4.54%)19.62%12.72%13.91%(14.94%)15.50%11.00%17.55% CITY OF EVANSTON, ILLINOIS SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS' PENSION FUND Last Ten Fiscal Years (See independent auditor's report.) - 108 - - 63 - CITY OF EVANSTON, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2025 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, 2026. 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. Annual budgets are adopted on a basis consistent with GAAP for all governmental and proprietary funds, with the exception of the Enterprise and Internal Service Funds which are budgeted on the Non-GAAP budgetary basis. Annual appropriated budgets are adopted for the General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service Funds, and Pension Trust Funds. A budget was not adopted for the Neighborhood Improvement and Parks and Recreation funds. 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, 2025. Fund Actual Final Budget Variance Debt Service $ 15,994,812 $ 15,988,861 $ 5,951 General 156,742,703 156,603,403 139,300 - 109 - COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund - to account for all financial resources of the City except those accounted for in another fund. Capital Improvements Fund - 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. 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 taxes 29,439,902$ 29,439,902$ 27,735,535$ (1,704,367)$ Other taxes State use tax 2,900,000 2,900,000 700,735 (2,199,265) Sales tax - home rule 10,500,000 10,500,000 12,452,215 1,952,215 Auto rental tax 65,000 65,000 54,884 (10,116) Transportation network provider tax 800,000 800,000 1,005,414 205,414 Athletic contest tax 500,000 500,000 735,207 235,207 Municipal hotel tax 2,350,000 2,350,000 2,516,140 166,140 Utility tax 6,750,000 6,750,000 6,458,716 (291,284) Cigarette tax 200,000 200,000 99,000 (101,000) Evanston motor fuel tax 1,000,000 1,000,000 1,053,650 53,650 Liquor tax 3,300,000 3,300,000 3,289,121 (10,879) Recreational cannabis tax 100,000 100,000 296,524 196,524 Bag tax 200,000 200,000 102,990 (97,010) Parking tax 2,900,000 2,900,000 2,967,907 67,907 Amusement tax 1,300,000 1,300,000 1,642,322 342,322 Retailer and service occupation tax 13,350,000 13,350,000 15,896,857 2,546,857 Real estate transfer tax 2,500,000 2,500,000 3,674,099 1,174,099 Total other taxes 48,715,000 48,715,000 52,945,781 4,230,781 Total taxes 78,154,902 78,154,902 80,681,316 2,526,414 Licenses and permits Vehicle licenses 2,800,000 2,800,000 2,724,765 (75,235) Business licenses 50,000 50,000 23,580 (26,420) Bed and breakfast licenses 150 150 - (150) Collection box license 2,500 2,500 1,050 (1,450) Pet licenses 20,000 20,000 25,393 5,393 Contractor licenses 170,000 170,000 211,150 41,150 Rooming house licenses - - 19,100 19,100 Liquor licenses 520,000 520,000 516,388 (3,612) One-day liquor licenses 17,000 17,000 18,624 1,624 Farmer's market licenses 55,000 55,000 83,577 28,577 Rental building registration 587,200 587,200 429,532 (157,668) Other licenses 20,000 20,000 - (20,000) Long-term care license 180,000 180,000 121,340 (58,660) Seasonal foot ESTB 15,000 15,000 8,800 (6,200) Mobile food vehicle license 1,450 1,450 - (1,450) Hen coop license 800 800 630 (170) Resident care home license 1,200 1,200 - (1,200) Building permits 5,000,000 5,000,000 11,961,892 6,961,892 Elevator permits 42,000 42,000 16,548 (25,452) Right of way permits 383,000 383,000 290,489 (92,511) Residents parking permit - - 2,378 2,378 Dumpster permit fee - - 50 50 Fire suppression/alarm permit - - 540 540 Oversize truck permit 25,000 25,000 68,550 43,550 Moving van permit 55,000 55,000 - (55,000) IL Bell franchise fee 90,000 90,000 72,433 (17,567) Northwestern University easement 47,000 47,000 112,457 65,457 CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2025 (This schedule is continued on the following pages.) - 110 - Variance Original Final Over Budget Budget Actual (Under) REVENUES (Continued) Licenses and permits (Continued) Cable franchise fee 800,000$ 800,000$ 687,583$ (112,417)$ PEG fees - Comcast 120,000 120,000 99,617 (20,383) Nicor franchise fee 75,000 75,000 83,883 8,883 Other permits 495,000 495,000 - (495,000) Total licenses and permits 11,572,300 11,572,300 17,580,349 6,008,049 Intergovernmental State income tax 13,500,000 13,500,000 14,145,983 645,983 State highway maintenance 92,000 92,000 93,491 1,491 Health Department Basic Service Grant 166,875 166,875 146,315 (20,560) Illinois tobacco free community 27,954 27,954 27,954 - IL HIV Surveillance Grant 34,150 34,150 28,487 (5,663) DIS Grant 100,000 100,000 84,956 (15,044) IAC Project Grant 30,000 30,000 - (30,000) NEA Grant 50,000 50,000 - (50,000) Other State/County Grant 20,000 20,000 182,395 162,395 CRI Grant 64,841 64,841 75,986 11,145 PEHP Grant 62,944 62,944 56,704 (6,240) Lead Paint Hazard Grant 150,000 150,000 - (150,000) Beach Grant 23,000 23,000 18,900 (4,100) Federal Grant/Aid 407,900 407,900 594,070 186,170 Market link vouchers 35,000 35,000 40,046 5,046 Civil Defense Grants (F.E.M.A.)30,000 30,000 9,022 (20,978) Narcotics enforcement revenue 40,000 40,000 16,432 (23,568) eShare revenue 120,000 120,000 110,293 (9,707) Police DUI reimbursement 7,400 7,400 - (7,400) Strengthening Public Health Grant 115,000 115,000 - (115,000) Putting Assets to Work Grant - - 148,699 148,699 Respiratory Outbreak Grant 125,000 125,000 157,329 32,329 Cook County WNV Grant 14,270 14,270 14,270 - Comm Aging Grant - - 23,961 23,961 Personal property replacement tax 2,500,000 2,500,000 2,098,324 (401,676) Total intergovernmental 17,716,334 17,716,334 18,073,617 357,283 Charges for services Recreation Recreation - program 8,217,409 8,217,409 7,862,508 (354,901) Recreation - concessions 362,100 362,100 99,261 (262,839) Recreation - special events 115,000 115,000 108,325 (6,675) Total recreation 8,694,509 8,694,509 8,070,094 (624,415) Other charges for services Health clinic fees - food establishment 230,000 230,000 220,965 (9,035) Temporary license fee 11,000 11,000 10,198 (802) Food delivery vehicle 6,500 6,500 4,542 (1,958) Beverage snack vending machine 46,000 46,000 39,115 (6,885) Tobacco license 17,000 17,000 15,027 (1,973) Beekeeper license 300 300 225 (75) Funeral director license 6,000 6,000 - (6,000) GENERAL FUND For the Fiscal Year Ended December 31, 2025 CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) (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, 2025 CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) REVENUES (Continued) Charges for services (Continued) Other charges for services (Continued) Birth/death certificates 92,000$ 92,000$ 128,761$ 36,761$ Senior Taxi coupon sales 60,000 60,000 59,784 (216) Historic preservation 30,000 30,000 20,575 (9,425) Tree preservation revenue 10,000 10,000 170,436 160,436 Ambulance service 5,300,000 5,300,000 5,297,253 (2,747) Police CTA detail 357,000 357,000 264,689 (92,311) Police report fees 25,000 25,000 17,176 (7,824) Officer and gentlemen 1,000 1,000 - (1,000) Police training - - 40,125 40,125 Electricity infrastructure maintenance - - 130 130 Zoning fees 50,000 50,000 88,320 38,320 Background check daycare providers 400 400 - (400) New pavement degradation 20,000 20,000 34,148 14,148 Rental fees - - 33,837 33,837 Plan review 5,000 5,000 - (5,000) Total other service charges 6,267,200 6,267,200 6,445,306 178,106 Total charges for services 14,961,709 14,961,709 14,515,400 (446,309) Fines and forfeits Ticket fines - parking 3,800,000 3,800,000 4,117,394 317,394 Regular fines 115,000 115,000 111,810 (3,190) Boot release fee 50,000 50,000 19,420 (30,580) Health code violation fees 3,000 3,000 - (3,000) Administrative adjudication fee 30,000 30,000 37,605 7,605 Total fines and forfeits 3,998,000 3,998,000 4,286,229 288,229 Investment income 750,000 750,000 2,365,741 1,615,741 Miscellaneous Police equipment reimbursement 10,000 10,000 25,233 15,233 Rethink your drink 5,000 5,000 - (5,000) We're Out Walking 6,000 6,000 1,819 (4,181) Property sales and rentals 100,000 100,000 396,771 296,771 Donation 35,500 35,500 82,119 46,619 Miscellaneous revenue 12,176,500 12,176,500 987,571 (11,188,929) Reimbursements - serve and protect 5,000 5,000 239,507 234,507 Reimbursements - salt use 32,000 32,000 23,765 (8,235) Reimbursements - police 675,000 675,000 801,405 126,405 Payment in lieu of taxes 60,000 60,000 55,000 (5,000) Chargeback revenue 300,000 300,000 263,312 (36,688) Insurance proceeds - - 50 50 Private Elm Trees Insurance 28,000 28,000 37,070 9,070 Citizens CPR class fees 10,000 10,000 10,019 19 Telecommunication maintenance fee 35,000 35,000 - (35,000) Credit card fees 300,000 300,000 - (300,000) Right-to-use lease amortization - - 54,754 54,754 Total miscellaneous 13,778,000 13,778,000 2,978,395 (10,799,605) TOTAL REVENUES 140,931,245$ 140,931,245$ 140,481,047$ (450,198)$ (See independent auditor's report.) - 112 - Variance Original Final Over Budget Budget Actual (Under) EXPENDITURES General management and support City council 594,319$ 594,319$ 483,643$ (110,676)$ City manager and budget management 12,128,582 12,389,207 12,413,156 23,949 City clerk 538,319 538,319 581,678 43,359 Law department 1,521,045 1,521,045 1,770,109 249,064 Administrative services 13,227,596 13,227,596 14,274,588 1,046,992 Total general management and support 28,009,861 28,270,486 29,523,174 1,252,688 Public safety Police 60,414,086 66,053,461 64,908,309 (1,145,152) Fire 23,294,964 23,294,964 23,673,065 378,101 Total public safety 83,709,050 89,348,425 88,581,374 (767,051) Public works Public works director 4,034,938 4,034,938 4,110,243 75,305 Municipal service center 2,309,540 2,309,540 2,182,065 (127,475) City engineer 785,575 785,575 706,728 (78,847) Sanitation - - 2,800 2,800 Traffic engineer 4,091,737 4,091,737 3,937,682 (154,055) Streets 5,129,081 5,129,081 5,262,913 133,832 Total public works 16,350,871 16,350,871 16,202,431 (148,440) Health and human services development Health and human services director 205,945 205,945 214,733 8,788 Mental health - - 7,110 7,110 Human relations - - 4,337 4,337 Health department 1,763,466 1,763,466 1,683,310 (80,156) Total health and human services development 1,969,411 1,969,411 1,909,490 (59,921) Recreation and cultural opportunities Recreation 14,000,044 14,000,044 14,468,084 468,040 Ecology center 1,014,644 1,014,644 936,339 (78,305) Cultural arts 571,292 571,292 527,035 (44,257) Total recreation and cultural opportunities 15,585,980 15,585,980 15,931,458 345,478 Housing and economic development Community development administration 626,848 626,848 696,544 69,696 Planning and zoning 1,377,720 1,377,720 1,199,141 (178,579) Housing rehabilitation and property standards 893,570 893,570 847,421 (46,149) Building code compliance 2,180,092 2,180,092 1,851,670 (328,422) Total housing and economic development 5,078,230 5,078,230 4,594,776 (483,454) TOTAL EXPENDITURES 150,703,403$ 156,603,403$ 156,742,703$ 139,300$ CITY OF EVANSTON, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For the Year Ended December 31, 2025 (See independent auditor's report.) - 113 - Original Final Budget Budget Actual Variance REVENUES Intergovernmental Grants 5,027,000$ 5,027,000$ 2,269,314$ (2,757,686)$ Contributions/reimbursements - - 1,255,104 1,255,104 Fees - - 670,449 670,449 Charges for services 30,000 30,000 61,966 31,966 Investment income 75,000 75,000 128,101 53,101 Total revenues 5,132,000 5,132,000 4,384,934 (747,066) EXPENDITURES Current General management and support - - 60 60 Public works 21,195,000 11,195,000 13,949,475 2,754,475 Capital outlay 5,027,000 5,027,000 1,004,180 (4,022,820) Total expenditures 26,222,000 16,222,000 14,953,715 (1,268,285) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (21,090,000) (11,090,000) (10,568,781) 521,219 OTHER FINANCING SOURCES (USES) Proceeds from issuance of bonds 21,195,000 21,195,000 - (21,195,000) Total other financing sources (uses)21,195,000 21,195,000 - (21,195,000) NET CHANGE IN FUND BALANCE 105,000$ 10,105,000$ (10,568,781) (20,673,781)$ FUND BALANCE (DEFICIT), JANUARY 1 (8,090,525) FUND BALANCES (DEFICIT), DECEMBER 31 (18,659,306)$ 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, 2025 (See independent auditor's report.) - 114 - Original and Final Budget Actual Variance Taxes Property taxes 12,766,093$ 12,385,312$ (380,781)$ Investment income 10,000 372,366 362,366 Total revenues 12,776,093 12,757,678 (18,415) Current General management and support - 2 2 Debt service Principal 10,746,121 10,746,121 - Interest and fiscal charges 5,242,740 5,248,689 5,949 Total expenditures 15,988,861 15,994,812 5,951 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,212,768) (3,237,134) (24,366) Transfers in 1,822,547 1,822,551 4 Total other financing sources (uses)1,822,547 1,822,551 4 NET CHANGE IN FUND BALANCE (1,390,221)$ (1,414,583) (24,362)$ FUND BALANCE, JANUARY 1 3,453,006 FUND BALANCE, DECEMBER 31 2,038,423$ 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 SERVICE FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 115 - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are restricted or committed 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. Foreign Fire Insurance – to account for monies distributed from the State of Illinois Municipal League for the fire department. Financing provided by foreign fire insurance license fees. 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. 9 - (successor to SSA #4) was reestablished in 2019 to provide certain public services to supplement services currently or customarily provided by the City to the Area. Services include the promotion and advertisement of the Area in order to attract businesses and consumers, and provide any other public services to the Area which the City may deem appropriate from time to time. SSA#9 is managed by Downtown Evanston (formerly EvMark), an Illinois not- for-profit corporation. Financing is provided by the City through an annual property tax levy. Special Service District No. 10 - was established in 2024 to provide certain public services to supplement services currently or customarily provided by the City to the Area. Services include the promotion and advertisement of the Area in order to attract businesses and consumers, and provide any other public services to the Area which the City may deem appropriate from time to time. Financing is provided by the City through an annual property tax levy. ARPA Fund - to account for the State and Local Fiscal Recovery Funds as provided for by the American Rescue Plan Act of 2021. Reparations - to account for the municipal tax revenues (at 3% of retail price) collected from the sales of recreational cannabis. NONMAJOR GOVERNMENTAL FUNDS (Continued) SPECIAL REVENUE FUNDS (Continued) Sustainability - to account for the resources provided by the City’s Climate Action and Resilience Plan. 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. Human Services - to account for benefits and facilities such as education, food subsidies, health care, and subsidized housing provided by the City. Parks and Recreation – to account for parks and recreation programs and recreation services that improve the quality of those who live, work, or play in the City. 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. Special Service Area No. 7 Fund - to account for the City’s support of commercial properties located in the Central Street merchant district. SSA #7 represents the east portion of Central Street located between Hartrey on the west, Eastwood on the east, Isabella on the north and Lincoln on the south. The purpose of the Central Street SSA districts is to help the merchant association grow and establish a stable funding stream for merchant and business district activities. Financing is provided by the City through an annual special service area property tax levy. Special Service Area No. 8 Fund - to account for the City’s support of commercial properties located in the Central Street merchant district. SSA #8 represents the west portion of Central Street located between Central Park Ave. on the west and Ewing Ave. on the east. The purpose of the Central Street SSA districts is to help the merchant association grow and establish a stable funding stream for merchant and business district activities. 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. NONMAJOR GOVERNMENTAL FUNDS (Continued) DEBT SERVICE FUNDS (Continued) West Evanston TIF - to account for principal and interest payments on debt proceeds issued and allocated to this tax increment financing district. Five Fifths TIF - to account for principal and interest payments on debt proceeds issued and allocated to this tax increment financing district. CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for activity related to capital improvements. Crown Construction - to account for capital improvements (primarily alley paving) financed by both special assessments on property owners and city contributions. Crown Maintenance - to account for capital improvements (primarily alley paving) financed by both special assessments on property owners and city contributions. Special Assessment - to account for capital improvements (primarily alley paving) financed by both special assessments on property owners and City contributions. Emergency Community Motor Fuel Telephone Foreign Fire Neighborhood Affordable Development Tax System Insurance Improvement Housing HOME Block Grant Cash and equivalents 1,134,153$ 335,265$ 296,710$ 23,845$ 3,063,119$ 24,182$ -$ Investments 6,232,140 - - - 2,120,694 - - Receivables Property tax - - - - - - - Loans - - - - 2,512,891 5,102,186 - Special assessments - - - - - - - Leases - - - - - - - Accrued interest - - - - - - - Due from other governments 316,225 346,040 - - - 34,830 522,969 Due from other funds 4,421 73,333 - 36 779 9,812 - TOTAL ASSETS 7,686,939$ 754,638$ 296,710$ 23,881$ 7,697,483$ 5,171,010$ 522,969$ LIABILITIES Vouchers payable 2,585,761$ 5,456$ -$ -$ 104,646$ 32,862$ 221,629$ Interest payable - - - - - - - Unearned revenue - - - - - - - Due to other governments - - - - - - - Due to other funds - - - - - - 242,017 Advances from other funds - - - - - - - Total liabilities 2,585,761 5,456 - - 104,646 32,862 463,646 DEFERRED INFLOWS OF RESOURCES Long-term notes receivable - - - - 2,512,891 5,102,186 - Unavailable revenue - property taxes - - - - - - - Leases - - - - - - - Total deferred inflows of resources - - - - 2,512,891 5,102,186 - Total liabilities and deferred inflows of resources 2,585,761 5,456 - - 2,617,537 5,135,048 463,646 FUND BALANCES Restricted for Highway maintenance 5,101,178 - - - - - - Emergency telephone system - 749,182 - - - - - Public safety - - 296,710 - - - - HUD approved projects - - - - - 35,962 59,323 Neighborhood improvements - - - 23,881 5,079,946 - - Reparations - - - - - - - Governmental services - - - - - - - Sustainability - - - - - - - Debt service - - - - - - - General assistance - - - - - - - Human services - - - - - - - Capital improvements - - - - - - - Assigned - - - - - - - Unassigned (deficit)- - - - - - - Total fund balances (deficit)5,101,178 749,182 296,710 23,881 5,079,946 35,962 59,323 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 7,686,939$ 754,638$ 296,710$ 23,881$ 7,697,483$ 5,171,010$ 522,969$ OF RESOURCES, AND FUND BALANCES ASSETS Special Revenue Special Revenue LIABILITIES, DEFERRED INFLOWS CITY OF EVANSTON, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2025 - 116 - Special Special Community Service Service Total Development District District Good General Human Parks and Special Loan No. 9 No. 10 ARPA Reparations Sustainability Neighbor Assistance Services Recreation Revenue 247,532$ 16,350$ -$ 718,275$ 229,988$ 1,008,338$ 376,483$ 514,717$ -$ -$ 7,988,957$ - - - 11,052,183 - - - - - - 19,405,017 - 964,120 97,595 - - - - 1,031,165 6,150,000 1,000,000 9,242,880 1,568,398 - - - - - - - - - 9,183,475 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,220,064 161,062 26 - - 177,571 - 544 62,007 451,890 - 941,481 1,976,992$ 980,496$ 97,595$ 11,770,458$ 407,559$ 1,008,338$ 377,027$ 1,607,889$ 6,601,890$ 1,000,000$ 47,981,874$ -$ 354,641$ 92,624$ 655,624$ 14,024$ 211,486$ -$ 395$ 265,228$ -$ 4,544,376$ - - - - - - - - - - - - - - 10,191,090 - - - - - - 10,191,090 15,346 - - - - - - - - - 15,346 - - - 466,858 - 17,106 - - - - 725,981 - - - - 375,000 - - - - - 375,000 15,346 354,641 92,624 11,313,572 389,024 228,592 - 395 265,228 - 15,851,793 1,568,398 - - - - - - - - - 9,183,475 - 675,000 97,595 - - - - 750,000 6,150,000 1,000,000 8,672,595 - - - - - - - - - - - 1,568,398 675,000 97,595 - - - - 750,000 6,150,000 1,000,000 17,856,070 1,583,744 1,029,641 190,219 11,313,572 389,024 228,592 - 750,395 6,415,228 1,000,000 33,707,863 - - - - - - - - - - 5,101,178 - - - - - - - - - - 749,182 - - - - - - - - - - 296,710 393,248 - - - - - - - - - 488,533 - - - - - - - - - - 5,103,827 - - - - 18,535 - - - - - 18,535 - - - 456,886 - - - - - - 456,886 - - - - - 779,746 - - - - 779,746 - - - - - - - - - - - - - - - - - - 857,494 - - 857,494 - - - - - - - - 186,662 - 186,662 - - - - - - 377,027 - - - 377,027 - - - - - - - - - - - - (49,145) (92,624) - - - - - - - (141,769) 393,248 (49,145) (92,624) 456,886 18,535 779,746 377,027 857,494 186,662 - 14,274,011 1,976,992$ 980,496$ 97,595$ 11,770,458$ 407,559$ 1,008,338$ 377,027$ 1,607,889$ 6,601,890$ 1,000,000$ 47,981,874$ Special Revenue (This schedule is continued on the following pages.) - 117 - Chicago Main Special Special Special Dempster-Dodge Howard Ridge Tax Service Service Service Tax Tax Increment Area Area Area Increment Increment District No. 6 No. 7 No. 8 District District Cash and equivalents 32,692$ 71,362$ 21,966$ 14,457$ 60,446$ 5,289$ Investments - - - - - - Receivables Property tax 780,321 296,068 202,729 83,585 241,584 825,785 Loans - - - - - - Special assessments - - - - - - Leases - - - - - 139,409 Accrued interest - - - - - 74 Due from other governments - - - - - - Due from other funds 204,985 113 35 23 1,001,733 2,193,565 TOTAL ASSETS 1,017,998$ 367,543$ 224,730$ 98,065$ 1,303,763$ 3,164,122$ LIABILITIES Vouchers payable 967,228$ 101,559$ 66,815$ 28,394$ 261$ 27,415$ Interest payable - - - - - - Unearned revenue - - - - - - Due to other governments - - - - - - Due to other funds - - - - - - Advances from other funds - - - - - - Total liabilities 967,228 101,559 66,815 28,394 261 27,415 DEFERRED INFLOWS OF RESOURCES Long-term notes receivable - - - - - - Unavailable revenue - property taxes - 210,000 146,392 62,006 - - Leases - - - - - 129,102 Total deferred inflows of resources - 210,000 146,392 62,006 - 129,102 Total liabilities and deferred inflows of resources 967,228 311,559 213,207 90,400 261 156,517 FUND BALANCES Restricted for Highway maintenance - - - - - - Emergency telephone system - - - - - - Public safety HUD approved projects - - - - - - Neighborhood improvements - 55,984 11,523 7,665 - - Reparations - - - - - - Governmental services - - - - - - Sustainability - - - - - - Debt service 50,770 - - - 1,303,502 3,007,605 General assistance - - - - - - Health and human services - - - - - - Capital improvements - - - - - - Assigned - - - - - - Unassigned (deficit)- - - - - - Total fund balances (deficit)50,770 55,984 11,523 7,665 1,303,502 3,007,605 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 1,017,998$ 367,543$ 224,730$ 98,065$ 1,303,763$ 3,164,122$ OF RESOURCES, AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS ASSETS CITY OF EVANSTON, ILLINOIS COMBINING BALANCE SHEET (Continued) NONMAJOR GOVERNMENTAL FUNDS December 31, 2025 Debt Service - 118 - West Evanston Five-Fifths Total Tax Tax Total Total Nonmajor Increment Increment Debt Crown Crown Special Capital Governmental District District Service Construction Maintenance Assessment Projects Funds 1,422$ 121,449$ 329,083$ 1,480,630$ 1,015,033$ 1,413,847$ 3,909,510$ 12,227,550$ - - - 3,517,164 - - 3,517,164 22,922,181 1,275,303 746,165 4,451,540 - - - - 13,694,420 - - - - - - - 9,183,475 - - - - - 837,977 837,977 837,977 - - 139,409 - - - - 139,409 - - 74 - - - - 74 - - - - - - - 1,220,064 2,634,322 764,779 6,799,555 3,860 - - 3,860 7,744,896 3,911,047$ 1,632,393$ 11,719,661$ 5,001,654$ 1,015,033$ 2,251,824$ 8,268,511$ 67,970,046$ 116,283$ 4,697$ 1,312,652$ 42,906$ -$ 940,066$ 982,972$ 6,840,000$ - - - - - - - - - - 10,191,090 - 566,641 566,641 - - - - 581,987 - - - - - 212,714 212,714 938,695 - - - - - - - 375,000 116,283 571,338 1,879,293 42,906 - 1,152,780 1,195,686 18,926,772 - - - - - 837,977 837,977 10,021,452 - - 418,398 - - - - 9,090,993 - - 129,102 - - - - 129,102 - - 547,500 - - 837,977 837,977 19,241,547 116,283 571,338 2,426,793 42,906 - 1,990,757 2,033,663 38,168,319 - - - - - - - 5,101,178 - - - - - - - 749,182 296,710 - - - - - - - 488,533 - - 75,172 - - 261,067 261,067 5,440,066 - - - - - - - 18,535 - - - - - - - 456,886 - - - - - - - 779,746 3,794,764 1,061,055 9,217,696 - - - - 9,217,696 - - - - - - - 857,494 - - - - - - - 186,662 - - - - - - - 377,027 - - - 4,958,748 1,015,033 - 5,973,781 5,973,781 - - - - - - - (141,769) 3,794,764 1,061,055 9,292,868 4,958,748 1,015,033 261,067 6,234,848 29,801,727 3,911,047$ 1,632,393$ 11,719,661$ 5,001,654$ 1,015,033$ 2,251,824$ 8,268,511$ 67,970,046$ Capital ProjectsDebt Service (See independent auditor's report.) - 119 - Emergency Community Motor Fuel Telephone Foreign Fire Neighborhood Affordable Development Tax System Insurance Improvement Housing HOME Block Grant REVENUES Taxes -$ -$ 277,400$ -$ 84,337$ -$ -$ Special assessments - - - - - - - Intergovernmental Grants - - - - 13,139 108,110 1,348,297 Contributions/reimbursements - - - - 393,964 - - Motor fuel tax allotments 3,565,969 - - - - - - Fees - 1,629,663 - - - - - Charges for services - - - - - - - Investment income 337,080 11,829 - 399 202,454 1,138 1,430 Miscellaneous - 9,000 - - 5,583 24,852 164,206 Total revenues 3,903,049 1,650,492 277,400 399 699,477 134,100 1,513,933 EXPENDITURES Current General management and support - - - - - - - Public safety - 1,992,096 262,581 - - - - Public works 5,878,513 - - - - - - Health and human resource development - - - - - - - Housing and economic development - - - - 873,748 135,469 1,513,933 Capital outlay - - - - - - - Total expenditures 5,878,513 1,992,096 262,581 - 873,748 135,469 1,513,933 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,975,464) (341,604) 14,819 399 (174,271) (1,369) - OTHER FINANCING SOURCES (USES) Transfers in - - - - 1,030,000 - - Transfers (out)- (99,996) - - - - - Total other financing sources (uses)- (99,996) - - 1,030,000 - - NET CHANGE IN FUND BALANCES (1,975,464) (441,600) 14,819 399 855,729 (1,369) - FUND BALANCES (DEFICIT), JANUARY 1 (AS REPORTED)7,076,642 1,190,782 281,891 23,482 4,224,217 37,331 59,323 Restatement - change in reporting entity - - - - - - - FUND BALANCES (DEFICIT), JANUARY 1 (AS RESTATED)7,076,642 1,190,782 281,891 23,482 4,224,217 37,331 59,323 FUND BALANCES (DEFICIT), DECEMBER 31 5,101,178$ 749,182$ 296,710$ 23,881$ 5,079,946$ 35,962$ 59,323$ Special RevenueSpecial Revenue CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2025 - 120 - Special Special Community Service Service Previously Total Development District District Major Good General Human Parks and Special Loan No. 9 No. 10 ARPA Reparations Sustainability Neighbor Assistance Services Recreation Revenue -$ 576,624$ -$ -$ 1,175,000$ -$ -$ 860,182$ 3,650,000$ -$ 6,623,543$ - - - - - - - - - - - - - - 3,917,986 - - - - 376,089 - 5,763,621 - - - - 2,530 - 3,090,000 - 8,000 - 3,494,494 - - - - - - - - - - 3,565,969 - - - - - - - - - - 1,629,663 - - - - - - - - - - - - 2,292 - 564,205 7,490 19,426 9,349 53,860 14,055 - 1,225,007 82,142 - - - - - - 28,314 - - 314,097 82,142 578,916 - 4,482,191 1,185,020 19,426 3,099,349 942,356 4,048,144 - 22,616,394 - - - 3,516,433 1,311,500 934,233 686,056 1,301,401 - - 7,749,623 - - - 204,324 - - - - - - 2,459,001 - - - - - - - - - - 5,878,513 - - - - - - - - 5,306,427 - 5,306,427 31,568 642,145 92,624 - - - - - - - 3,289,487 - - - 197,392 - - - - - - 197,392 31,568 642,145 92,624 3,918,149 1,311,500 934,233 686,056 1,301,401 5,306,427 - 24,880,443 50,574 (63,229) (92,624) 564,042 (126,480) (914,807) 2,413,293 (359,045) (1,258,283) - (2,264,049) - - - - - 715,000 - - - - 1,745,000 - - - (1,500,000) - - (3,090,000) - - - (4,689,996) - - - (1,500,000) - 715,000 (3,090,000) - - - (2,944,996) 50,574 (63,229) (92,624) (935,958) (126,480) (199,807) (676,707) (359,045) (1,258,283) - (5,209,045) 342,674 14,084 - - 145,015 979,553 1,053,734 1,216,539 1,444,945 - 18,090,212 - - - 1,392,844 - - - - - - 1,392,844 342,674 14,084 - 1,392,844 145,015 979,553 1,053,734 1,216,539 1,444,945 - 19,483,056 393,248$ (49,145)$ (92,624)$ 456,886$ 18,535$ 779,746$ 377,027$ 857,494$ 186,662$ -$ 14,274,011$ Special Revenue (This schedule is continued on the following pages.) - 121 - Chicago Main Special Special Special Dempster-Dodge Howard Ridge Tax Service Service Service Tax Tax Increment Area Area Area Increment Increment District No. 6 No. 7 No. 8 District District REVENUES Taxes 1,398,121$ 205,509$ 131,523$ 53,385$ 510,482$ 1,444,396$ Special assessments - - - - - - Intergovernmental Grants - - - - - - Contributions/reimbursements - - - - - - Motor fuel tax allotments - - - - - - Fees - - - - - - Charges for services - - - - - - Investment income 30,415 4,790 1,011 444 27,043 54,721 Miscellaneous - - - - - 39,799 Total revenues 1,428,536 210,299 132,534 53,829 537,525 1,538,916 EXPENDITURES Current General management and support - - - - - - Public safety - - - - - - Public works - - - - - - Health and human resource development - - - - - - Housing and economic development 904,675 212,734 142,001 54,923 21,896 101,707 Capital outlay - - - - - - Total expenditures 904,675 212,734 142,001 54,923 21,896 101,707 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 523,861 (2,435) (9,467) (1,094) 515,629 1,437,209 OTHER FINANCING SOURCES (USES) Transfers in - - - - - - Transfers (out)(307,992) - - - (193,344) (343,908) Total other financing sources (uses)(307,992) - - - (193,344) (343,908) NET CHANGE IN FUND BALANCES 215,869 (2,435) (9,467) (1,094) 322,285 1,093,301 FUND BALANCES (DEFICIT), JANUARY 1 (AS REPORTED)(165,099) 58,419 20,990 8,759 981,217 1,914,304 Restatement - change in reporting entity - - - - - - FUND BALANCES (DEFICIT), JANUARY 1 (AS RESTATED)(165,099) 58,419 20,990 8,759 981,217 1,914,304 FUND BALANCES (DEFICIT), DECEMBER 31 50,770$ 55,984$ 11,523$ 7,665$ 1,303,502$ 3,007,605$ Debt Service CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued) NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2025 - 122 - West Evanston Five-Fifths Total Tax Tax Total Total Nonmajor Increment Increment Debt Crown Crown Special Capital Governmental District District Service Construction Maintenance Assessment Projects Funds 2,397,426$ 1,527,673$ 7,668,515$ -$ -$ -$ -$ 14,292,058$ - - - - - 215,970 215,970 215,970 - - - - - - - 5,763,621 - - - 500,000 - - 500,000 3,994,494 - - - - - - - 3,565,969 - - - - - - - 1,629,663 - - - - - - - - 68,886 28,480 215,790 262,432 - 57,403 319,835 1,760,632 - 3,397 43,196 - - - - 357,293 2,466,312 1,559,550 7,927,501 762,432 - 273,373 1,035,805 31,579,700 - - - - - 60 60 7,749,683 - - - - - - - 2,459,001 - - - 8,358 - - 8,358 5,886,871 - - - - - - - 5,306,427 983,063 714,424 3,135,423 - - - - 6,424,910 - - - 334,169 - 984,295 1,318,464 1,515,856 983,063 714,424 3,135,423 342,527 - 984,355 1,326,882 29,342,748 1,483,249 845,126 4,792,078 419,905 - (710,982) (291,077) 2,236,952 - - - - 174,996 - 174,996 1,919,996 (110,556) (73,848) (1,029,648) (588,372) - (230,631) (819,003) (6,538,647) (110,556) (73,848) (1,029,648) (588,372) 174,996 (230,631) (644,007) (4,618,651) 1,372,693 771,278 3,762,430 (168,467) 174,996 (941,613) (935,084) (2,381,699) 2,422,071 289,777 5,530,438 5,127,215 840,037 1,202,680 7,169,932 30,790,582 - - - - - - - 1,392,844 2,422,071 289,777 5,530,438 5,127,215 840,037 1,202,680 7,169,932 32,183,426 3,794,764$ 1,061,055$ 9,292,868$ 4,958,748$ 1,015,033$ 261,067$ 6,234,848$ 29,801,727$ Capital ProjectsDebt Service (See independent auditor's report.) - 123 - Original and Final Budget Actual Variance REVENUES Intergovernmental Motor fuel tax allotments 3,300,000$ 3,565,969$ 265,969$ Investment income 50,000 337,080 287,080 Total revenues 3,350,000 3,903,049 553,049 EXPENDITURES Public works 6,359,650 5,878,513 (481,137) Total expenditures 6,359,650 5,878,513 (481,137) NET CHANGE IN FUND BALANCE (3,009,650)$ (1,975,464) 1,034,186$ FUND BALANCE, JANUARY 1 7,076,642 FUND BALANCE, DECEMBER 31 5,101,178$ 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, 2025 (See independent auditor's report.) - 124 - Original Final Budget Budget Actual Variance REVENUES Fees 1,450,000$ 1,450,000$ 1,629,663$ 179,663$ Investment income 15,000 15,000 11,829 (3,171) Miscellaneous - - 9,000 9,000 Total revenues 1,465,000 1,465,000 1,650,492 185,492 EXPENDITURES Current Public safety 1,762,841 1,992,096 1,992,096 - Total expenditures 1,762,841 1,992,096 1,992,096 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (297,841) (527,096) (341,604) 185,492 OTHER FINANCING SOURCES (USES) Transfers (out)(100,000) (100,000) (99,996) 4 NET CHANGE IN FUND BALANCE (397,841)$ (627,096)$ (441,600) 185,496$ FUND BALANCE, JANUARY 1 1,190,782 FUND BALANCE, DECEMBER 31 749,182$ 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, 2025 (See independent auditor's report.) - 125 - Original Final Budget Budget Actual Variance REVENUES Taxes Foreign fire insurance tax 250,000$ 250,000$ 277,400$ 27,400$ Total revenues 250,000 250,000 277,400 27,400 EXPENDITURES Current Public safety 200,000 262,582 262,581 (1) Total expenditures 200,000 262,582 262,581 (1) NET CHANGE IN FUND BALANCE 50,000$ (12,582)$ 14,819 27,401$ FUND BALANCE, JANUARY 1 281,891 FUND BALANCE, DECEMBER 31 296,710$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOREIGN FIRE INSURANCE FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 126 - Original and Final Budget Actual Variance REVENUES Taxes Affordable housing demo tax 50,000$ 84,337$ 34,337$ Intergovernmental Grants - 13,139 13,139 Contributions/reimbursements 125,000 393,964 268,964 Investment income 40,000 202,454 162,454 Miscellaneous 5,000 5,583 583 Total revenues 220,000 699,477 479,477 EXPENDITURES Current Housing and economic development 2,362,480 873,748 (1,488,732) Total expenditures 2,362,480 873,748 (1,488,732) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,142,480) (174,271) 1,968,209 OTHER FINANCING SOURCES (USES) Transfers in 1,000,000 1,030,000 30,000 Total other financing sources (uses)1,000,000 1,030,000 30,000 NET CHANGE IN FUND BALANCE (1,142,480)$ 855,729 1,998,209$ FUND BALANCE, JANUARY 1 4,224,217 FUND BALANCE, DECEMBER 31 5,079,946$ AFFORDABLE HOUSING FUND For the Year Ended December 31, 2025 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CITY OF EVANSTON, ILLINOIS (See independent auditor's report.) - 127 - Original Final Budget Budget Actual Variance REVENUES Intergovernmental Contributions/reimbursements 2,256,469$ 2,256,469$ 108,110$ (2,148,359)$ Investment income 150 150 1,138 988 Miscellaneous 25,000 25,000 24,852 (148) Total revenues 2,281,619 2,281,619 134,100 (2,147,519) EXPENDITURES Current Housing and economic development 2,275,912 775,912 135,469 (640,443) Total expenditures 2,275,912 775,912 135,469 (640,443) NET CHANGE IN FUND BALANCE 5,707$ 1,505,707$ (1,369) (1,507,076)$ FUND BALANCE, JANUARY 1 37,331 FUND BALANCE, DECEMBER 31 35,962$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOME FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 128 - Original Original and Budget Final Budget Actual Variance REVENUES Intergovernmental Grant from U.S. Department of Housing and Urban Development 2,616,400$ 2,616,400$ 1,348,297$ (1,268,103)$ Investment income - - 1,430 1,430 Miscellaneous - - 164,206 164,206 Total revenues 2,616,400 2,616,400 1,513,933 (1,102,467) EXPENDITURES Current Housing and economic development 3,788,998 1,788,998 1,513,933 (275,065) Total expenditures 3,788,998 1,788,998 1,513,933 (275,065) NET CHANGE IN FUND BALANCE (1,172,598)$ 827,402$ - (827,402)$ FUND BALANCE, JANUARY 1 59,323 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, 2025 (See independent auditor's report.) - 129 - Original Final Budget Budget Actual Variance Administration/Planning CDBG administration 2,488,699$ 525,254$ 481,191$ (44,063)$ Total administration/planning 2,488,699 525,254 481,191 (44,063) Housing Rehab construction administration 140,299 140,299 117,956 (22,343) Targeted housing code enforcement - - 259,423 259,423 Total housing 140,299 140,299 377,379 237,080 Neighborhood revitalization Twiggs Park - - 239,338 239,338 Phase I engineering 10,000 10,000 - (10,000) Other improvements 1,150,000 1,113,445 211,100 (902,345) Total neighborhood revitalization 1,160,000 1,123,445 450,438 (673,007) Public services YWCA domestic violence - - 30,000 30,000 Interfaith housing program - homeshare - - 45,000 45,000 Connections for homeless - - 125,000 125,000 Direct financial assistance to businesses - - 4,925 4,925 Total public services - - 204,925 204,925 TOTAL EXPENDITURES 3,788,998$ 1,788,998$ 1,513,933$ (275,065)$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 130 - Original and Final Budget Actual Variance REVENUES Investment income 5,000$ -$ (5,000)$ Miscellaneous 301,565 82,142 (219,423) Total revenues 306,565 82,142 (224,423) EXPENDITURES Current Housing and economic development 306,565 31,568 (274,997) Total expenditures 306,565 31,568 (274,997) NET CHANGE IN FUND BALANCE -$ 50,574 50,574$ FUND BALANCE, JANUARY 1 342,674 FUND BALANCE, DECEMBER 31 393,248$ 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, 2025 (See independent auditor's report.) - 131 - Original and Final Budget Actual Variance REVENUES Taxes Property taxes 642,145$ 576,624$ (65,521)$ Investment income - 2,292 2,292 Total revenues 642,145 578,916 (63,229) EXPENDITURES Current Housing and economic development 642,145 642,145 - Total expenditures 642,145 642,145 - NET CHANGE IN FUND BALANCE -$ (63,229) (63,229)$ FUND BALANCE, JANUARY 1 14,084 FUND BALANCE (DEFICIT), DECEMBER 31 (49,145)$ 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, 2025 (See independent auditor's report.) - 132 - Original Final Budget Budget Actual Variance REVENUES Taxes Property taxes 92,624$ 92,624$ -$ (92,624)$ Total revenues 92,624 92,624 - (92,624) EXPENDITURES Current Housing and economic development 90,000 92,624 92,624 - Total expenditures 90,000 92,624 92,624 - NET CHANGE IN FUND BALANCE 2,624$ -$ (92,624) (92,624)$ FUND BALANCE, JANUARY 1 - FUND BALANCE (DEFICIT), DECEMBER 31 (92,624)$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SPECIAL SERVICE DISTRICT NO. 10 FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 133 - Original Final Budget Budget Actual Variance REVENUES Intergovernmental -$ Grants -$ 3,917,986$ 3,917,986$ Investment income 650,000 650,000 564,205 (85,795) Total revenues 650,000 650,000 4,482,191 3,832,191 EXPENDITURES Current General management and support 15,229,875 4,121,750 3,516,433 (605,317) Public safety 858,100 218,832 204,324 (14,508) Capital outlay 475,000 222,393 197,392 (25,001) Total expenditures 16,562,975 4,562,975 3,918,149 (644,826) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (15,912,975) (3,912,975) 564,042 4,477,017 OTHER FINANCING SOURCES (USES) Transfers (out)(1,500,000) (1,500,000) (1,500,000) - Other financing sources (uses) - net (1,500,000) (1,500,000) (1,500,000) - NET CHANGE IN FUND BALANCE (17,412,975)$ (5,412,975)$ (935,958) 4,477,017$ FUND BALANCE, JANUARY 1 1,392,844 FUND BALANCE, DECEMBER 31 456,886$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ARPA FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 134 - Original Final Budget Budget Actual Variance REVENUES Taxes Other taxes 1,200,000$ 1,200,000$ 1,175,000$ (25,000)$ Intergovernmental Grants 100,000 100,000 - (100,000) Contributions/reimbursements - - 2,530 2,530 Investment income 2,500 2,500 7,490 4,990 Total revenues 1,302,500 1,302,500 1,185,020 (117,480) EXPENDITURES Current General management and support 1,301,000 1,311,500 1,311,500 - Total expenditures 1,301,000 1,311,500 1,311,500 - NET CHANGE IN FUND BALANCE 1,500$ (9,000)$ (126,480) (117,480)$ FUND BALANCE, JANUARY 1 145,015 FUND BALANCE, DECEMBER 31 18,535$ SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CITY OF EVANSTON, ILLINOIS For the Year Ended December 31, 2025 REPARATIONS FUND (See independent auditor's report.) - 135 - Original and Final Budget Actual Variance REVENUES Intergovernmental Grants 260,000$ -$ (260,000)$ Fees 510,000 - (510,000) Investment income 2,000 19,426 17,426 Total revenues 772,000 19,426 (752,574) EXPENDITURES Current General management and support 1,706,513 934,233 (772,280) Total expenditures 1,706,513 934,233 (772,280) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (934,513) (914,807) 19,706 OTHER FINANCING SOURCES (USES) Transfers in 800,000 715,000 (85,000) Total other financing sources (uses)800,000 715,000 (85,000) NET CHANGE IN FUND BALANCE (134,513)$ (199,807) (65,294)$ FUND BALANCE, JANUARY 1 979,553 FUND BALANCE, DECEMBER 31 779,746$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SUSTAINABILITY FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 136 - Original Final Budget Budget Actual Variance REVENUES Intergovernmental Contributions/reimbursements 3,000,000$ 3,090,000$ 90,000$ Investment income -$ - 9,349 9,349 Total revenues - 3,000,000 3,099,349 99,349 EXPENDITURES Current General management and support 164,000 776,056 686,056 (90,000) Total expenditures 164,000 776,056 686,056 (90,000) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (164,000) 2,223,944 2,413,293 189,349 OTHER FINANCING SOURCES (USES) Transfers (out)(3,000,000) (3,000,000) (3,090,000) (90,000) Total other financing sources (uses)(3,000,000) (3,000,000) (3,090,000) (90,000) NET CHANGE IN FUND BALANCE (3,164,000)$ (776,056)$ (676,707) 99,349$ FUND BALANCE, JANUARY 1 1,053,734 FUND BALANCE, DECEMBER 31 377,027$ 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, 2025 (See independent auditor's report.) - 137 - Original and Final Budget Actual Variance REVENUES Taxes Property taxes 750,000$ 860,182$ 110,182$ Investment income 1,000 53,860 52,860 Miscellaneous 27,500 28,314 814 Total revenues 778,500 942,356 163,856 EXPENDITURES Current General management and support 1,342,920 1,301,401 (41,519) Total expenditures 1,342,920 1,301,401 (41,519) NET CHANGE IN FUND BALANCE (564,420)$ (359,045) 205,375$ FUND BALANCE, JANUARY 1 1,216,539 FUND BALANCE, DECEMBER 31 857,494$ 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, 2025 (See independent auditor's report.) - 138 - Original and Final Budget Actual Variance REVENUES Taxes Property taxes 3,650,000$ 3,650,000$ -$ Intergovernmental Grants 335,000 376,089 41,089 Contributions/reimbursements - 8,000 8,000 Investment income 6,000 14,055 8,055 Miscellaneous 20,000 - (20,000) Total revenues 4,011,000 4,048,144 37,144 EXPENDITURES Current Health and human resource development 6,360,977 5,306,427 (1,054,550) Total expenditures 6,360,977 5,306,427 (1,054,550) NET CHANGE IN FUND BALANCE (2,349,977)$ (1,258,283) 1,091,694$ FUND BALANCE, JANUARY 1 1,444,945 FUND BALANCE, DECEMBER 31 186,662$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HUMAN SERVICES FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 139 - Original Final Budget Budget Actual Variance REVENUES Intergovernmental Contributions/reimbursements 1,000,000 1,000,000$ 500,000$ (500,000)$ Investment income 10,000$ 10,000 262,432 252,432 Total revenues 10,000 1,010,000 762,432 (247,568) EXPENDITURES Current Public works 60 60 8,358 8,298 Capital outlay 200,000 342,469 334,169 (8,300) Total expenditures 200,060 342,529 342,527 (2) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (190,060) 667,471 419,905 (247,566) OTHER FINANCING SOURCES (USES) Transfers (out)(588,369) (588,369) (588,372) (3) Total other financing sources (uses)(588,369) (588,369) (588,372) (3) NET CHANGE IN FUND BALANCE (778,429)$ 79,102$ (168,467) (247,569)$ FUND BALANCE, JANUARY 1 5,127,215 FUND BALANCE, DECEMBER 31 4,958,748$ 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, 2025 (See independent auditor's report.) - 140 - Original and Final Budget Actual Variance REVENUES None -$ -$ -$ Total revenues - - - EXPENDITURES Capital outlay 175,000 - (175,000) Total expenditures 175,000 - (175,000) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (175,000) - 175,000 OTHER FINANCING SOURCES (USES) Transfers in 175,000 174,996 (4) Total other financing sources (uses)175,000 174,996 (4) NET CHANGE IN FUND BALANCE -$ 174,996 174,996$ FUND BALANCE, JANUARY 1 840,037 FUND BALANCE, DECEMBER 31 1,015,033$ 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, 2025 (See independent auditor's report.) - 141 - Original and Final Budget Actual Variance REVENUES Special assessments 215,000$ 215,970$ 970$ Investment income 5,000 57,403 52,403 Total revenues 220,000 273,373 53,373 EXPENDITURES Current General management and support 50 60 10 Capital outlay 1,650,000 984,295 (665,705) Total expenditures 1,650,050 984,355 (665,695) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,430,050) (710,982) 719,068 OTHER FINANCING SOURCES (USES) Transfers (out)(230,631) (230,631) - Total other financing sources (uses)(230,631) (230,631) - NET CHANGE IN FUND BALANCE (1,660,681)$ (941,613) 719,068$ FUND BALANCE, JANUARY 1 1,202,680 FUND BALANCE, DECEMBER 31 261,067$ 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, 2025 (See independent auditor's report.) - 142 - Original Final Original Final Budget Budget Actual Budget Budget Actual Taxes Property taxes 1,295,000$ 1,295,000$ 1,398,121$ 221,000$ 221,000$ 205,509$ Investment income 10,000 10,000 30,415 250 250 4,790 Miscellaneous - - - - - - Total revenues 1,305,000 1,305,000 1,428,536 221,250 221,250 210,299 Current developmentHousing and economic development 850,010 904,677 904,675 220,000 220,000 212,734 Total expenditures 850,010 904,677 904,675 220,000 220,000 212,734 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 454,990 400,323 523,861 1,250 1,250 (2,435) Transfers (out)(307,990) (307,990) (307,992) - - - Total other financing sources (uses)(307,990) (307,990) (307,992) - - - NET CHANGE IN FUND BALANCE 147,000$ 92,333$ 215,869 1,250$ 1,250$ (2,435) FUND BALANCE (DEFICIT), JANUARY 1 (165,099) 58,419 FUND BALANCE, DECEMBER 31 50,770$ 55,984$ Increment District Chicago Main Tax Special Service Area No. 6 OTHER FINANCING SOURCES (USES) EXPENDITURES REVENUES CITY OF EVANSTON, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND DEBT SERVICE FUNDS For the Year Ended December 31, 2025 CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - 143 - Original Final Original Final Original Final Budget Budget Actual Budget Budget Actual Budget Budget Actual 142,000$ 142,000$ 131,523$ 60,200$ 60,200$ 53,385$ 488,000$ 488,000$ 510,482$ 200 200 1,011 - - 444 3,000 3,000 27,043 - - - - - - - - - 142,200 142,200 132,534 60,200 60,200 53,829 491,000 491,000 537,525 140,000 142,001 142,001 60,200 60,200 54,923 12,000 21,897 21,896 140,000 142,001 142,001 60,200 60,200 54,923 12,000 21,897 21,896 2,200 199 (9,467) - - (1,094) 479,000 469,103 515,629 - - - - - - (193,343) (193,343) (193,344) - - - - - - (193,343) (193,343) (193,344) 2,200$ 199$ (9,467) -$ -$ (1,094) 285,657$ 275,760$ 322,285 20,990 8,759 981,217 11,523$ 7,665$ 1,303,502$ Special Service Area No. 7 Special Service Area No. 8 Dempster-Dodge Tax Increment District (This schedule is continued on the following pages.) - 144 - Original Final Original Final Budget Budget Actual Budget Budget Actual Taxes Property taxes 1,336,000$ 1,336,000$ 1,444,396$ 2,211,000$ 2,211,000$ 2,397,426$ Investment income 12,000 12,000 54,721 6,000 6,000 68,886 Miscellaneous - - 39,799 - - - Total revenues 1,348,000 1,348,000 1,538,916 2,217,000 2,217,000 2,466,312 Current developmentHousing and economic development 513,500 513,500 101,707 2,712,790 2,712,790 983,063 Total expenditures 513,500 513,500 101,707 2,712,790 2,712,790 983,063 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 834,500 834,500 1,437,209 (495,790) (495,790) 1,483,249 Transfers in (out)(343,913) (343,913) (343,908) (110,550) (110,550) (110,556) Total other financing sources (uses)(343,913) (343,913) (343,908) (110,550) (110,550) (110,556) NET CHANGE IN FUND BALANCE 490,587$ 490,587$ 1,093,301 (606,340)$ (606,340)$ 1,372,693 FUND BALANCE (DEFICIT), JANUARY 1 1,914,304 2,422,071 FUND BALANCE, DECEMBER 31 3,007,605$ 3,794,764$ 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, 2025 West Evanston Tax Increment District Howard Ridge Tax Increment District REVENUES EXPENDITURES OTHER FINANCING SOURCES (USES) - 145 - Original Final Original Final Budget Budget Actual Budget Budget Actual 1,477,000$ 1,477,000$ 1,527,673$ 7,230,200$ 7,230,200$ 7,668,515$ 1,000 1,000 28,480 32,450 32,450 215,790 - - 3,397 - - 43,196 1,478,000 1,478,000 1,559,550 7,262,650 7,262,650 7,927,501 1,150,520 1,150,520 714,424 5,659,020 5,725,585 3,135,423 1,150,520 1,150,520 714,424 5,659,020 5,725,585 3,135,423 327,480 327,480 845,126 1,603,630 1,537,065 4,792,078 (73,850) (73,850) (73,848) (1,029,646) (1,029,646) (1,029,648) (73,850) (73,850) (73,848) (1,029,646) (1,029,646) (1,029,648) 253,630$ 253,630$ 771,278 573,984$ 507,419$ 3,762,430 289,777 5,530,438 1,061,055$ 9,292,868$ Five Fifths Tax Increment District Total (See independent auditor's report.) - 146 - 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. Original Final Budget Budget Actual OPERATING REVENUES Charges for services 28,238,600$ 28,238,600$ 29,240,102$ Miscellaneous 640,650 640,650 746,748 Total operating revenues 28,879,250 28,879,250 29,986,850 OPERATING EXPENSES EXCLUDING DEPRECIATION Administration 2,054,191 2,054,191 2,728,758 Operations Pumping 2,996,211 2,996,211 3,422,936 Filtration 3,692,297 3,692,297 3,802,803 Distribution 43,951,615 28,951,615 6,345,669 Meter maintenance 389,504 389,504 388,948 Administration 2,217,345 2,217,345 2,398,548 Other 2,962,525 2,962,525 1,725,770 Total operating expenses excluding depreciation 58,263,688 43,263,688 20,813,432 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (29,384,438) (14,384,438) 9,173,418 Depreciation - - 3,659,829 OPERATING INCOME (LOSS)(29,384,438) (14,384,438) 5,513,589 NON-OPERATING REVENUES (EXPENSES) Investment income 150,000 150,000 988,705 Intergovernmental - - 86,081 Interest expense (6,395,895) (6,395,895) (1,821,005) Legal settlements - - 1,276,352 Issuance of bonds 14,000,000 14,000,000 - Issuance of loans 21,514,085 21,514,085 - Total non-operating revenues (expenses)29,268,190 29,268,190 530,133 INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (116,248) 14,883,752 6,043,722 TRANSFERS AND CONTRIBUTIONS Transfers (out)(4,129,000) (4,129,000) (4,129,008) Contributions - - 708,582 Total transfers and contributions (4,129,000) (4,129,000) (3,420,426) NET INCOME (LOSS)(4,245,248)$ 10,754,752$ 2,623,296 NET POSITION, JANUARY 1 92,510,829 NET POSITION, DECEMBER 31 95,134,125$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATER FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 147 - Original and Final Budget Actual CHARGES FOR SERVICES, NET Water sales Evanston 14,129,000$ 13,963,796$ Skokie 3,710,000 3,575,037 Northwest Water Commission 7,134,500 8,464,559 Morton Grove Niles Water Commission 2,238,000 2,151,963 Lincolnwood 1,027,100 1,084,747 Total charges for services 28,238,600 29,240,102 MISCELLANEOUS Fees and outside work 185,000 204,248 Fees, merchandise, and other 455,650 542,500 Total miscellaneous 640,650 746,748 TOTAL OPERATING REVENUES 28,879,250$ 29,986,850$ CITY OF EVANSTON, ILLINOIS SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL OPERATION AND MAINTENANCE ACCOUNT For the Year Ended December 31, 2025 WATER FUND (See independent auditor's report.) - 148 - 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 Fleet Replacement Services Insurance Total CURRENT ASSETS Cash and cash equivalents 1,450,438$ 618,053$ 2,989,091$ 5,057,582$ Receivables Other 56,974 14,753 - 71,727 Inventories - 1,898,555 - 1,898,555 Prepaid items 658,613 - 5,101,689 5,760,302 Due from other funds 2,225 - 2,453,034 2,455,259 Total current assets 2,168,250 2,531,361 10,543,814 15,243,425 CAPITAL ASSETS Capital assets being depreciated 34,146,155 617,552 - 34,763,707 Accumulated depreciation (21,759,923) (617,447) - (22,377,370) Total capital assets 12,386,232 105 - 12,386,337 Total assets 14,554,482 2,531,466 10,543,814 27,629,762 DEFERRED OUTFLOWS OF RESOURCES OPEB items - 17,652 - 17,652 Total deferred outflows of resources - 17,652 - 17,652 Total assets and deferred outflows of resources 14,554,482 2,549,118 10,543,814 27,647,414 CURRENT LIABILITIES Vouchers payable 134,561 250,179 109,527 494,267 Due to other funds - 93,772 - 93,772 Total OPEB liability - 5,006 - 5,006 Claims payable - - 1,108,082 1,108,082 Compensated absences payable - 116,768 - 116,768 Total current liabilities 134,561 465,725 1,217,609 1,817,895 LONG-TERM LIABILITIES General obligation bonds payable 660,000 - - 660,000 Total OPEB liability - 118,446 - 118,446 Claims payable - - 4,722,719 4,722,719 Compensated absences payable - 29,804 - 29,804 Total long-term liabilities 660,000 148,250 4,722,719 5,530,969 Total liabilities 794,561 613,975 5,940,328 7,348,864 DEFERRED INFLOWS OF RESOURCES OPEB items - 54,802 - 54,802 Total deferred inflows of resources - 54,802 - 54,802 Total liabilities and deferred inflows of resources 794,561 668,777 5,940,328 7,403,666 NET POSITION Net investment in capital assets 11,591,671 105 - 11,591,776 Unrestricted 2,168,250 1,880,236 4,603,486 8,651,972 TOTAL NET POSITION 13,759,921$ 1,880,341$ 4,603,486$ 20,243,748$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2025 (See independent auditor's report.) - 149 - Equipment Fleet Replacement Services Insurance Total OPERATING REVENUES Charges for services General Fund 870,000$ 3,012,258$ 3,893,508$ 7,775,766$ Sewer Fund - 338,004 369,804 707,808 Solid Waste - 418,596 - 418,596 Water Fund - 234,000 1,665,132 1,899,132 Motor Vehicle Parking System Fund - 207,996 369,072 577,068 Library Fund 4,884 5,436 - 10,320 Emergency Telephone System - - 19,140 19,140 Claims reimbursements - - 198,256 198,256 Health insurance contributions Contributions from other funds - - 12,036,500 12,036,500 Employee contributions - - 3,635,873 3,635,873 Other contributions - 52,471 744,301 796,772 Total operating revenues 874,884 4,268,761 22,931,586 28,075,231 OPERATING EXPENSES General support - 1,623,702 46,871 1,670,573 Major maintenance 23,054 2,304,661 - 2,327,715 General liability claims - - 4,983,517 4,983,517 Workers' compensation claims - - 1,417,753 1,417,753 Health insurance premiums - - 16,573,818 16,573,818 Total operating expenses 23,054 3,928,363 23,021,959 26,973,376 OPERATING INCOME BEFORE DEPRECIATION 851,830 340,398 (90,373) 1,101,855 Depreciation 2,041,818 - - 2,041,818 OPERATING INCOME (LOSS)(1,189,988) 340,398 (90,373) (939,963) NON-OPERATING REVENUES (EXPENSES) Investment income 37,759 5,692 87,832 131,283 Miscellaneous income - 2,453 - 2,453 Intergovernmental 97,762 - - 97,762 Gain on sale of property 126,476 - - 126,476 Total non-operating revenues (expenses)261,997 8,145 87,832 357,974 INCOME (LOSS) BEFORE TRANSFERS (927,991) 348,543 (2,541) (581,989) TRANSFERS Transfers in 1,500,000 - - 1,500,000 Total transfers 1,500,000 - - 1,500,000 CHANGE IN NET POSITION 572,009 348,543 (2,541) 918,011 NET POSITION, JANUARY 1 13,187,912 1,531,798 4,606,027 19,325,737 NET POSITION, DECEMBER 31 13,759,921$ 1,880,341$ 4,603,486$ 20,243,748$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES, INTERNAL SERVICE FUNDS For the Year Ended December 31, 2025 AND CHANGES IN NET POSITION (See independent auditor's report.) - 150 - Equipment Fleet Replacement Services Insurance Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users -$ -$ 3,834,129$ 3,834,129$ Receipts from (payments for) Interfund services provided 854,828 4,216,290 18,353,156 23,424,274 Receipts from other agencies - 54,881 744,301 799,182 Payments to suppliers (23,054) (2,363,825) (46,871) (2,433,750) Payments to employees - (1,644,835) (4,983,517) (6,628,352) Payments for insurance premiums - - (19,006,790) (19,006,790) Net cash from operating activities 831,774 262,511 (1,105,592) (11,307) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund transfers 1,500,000 - - 1,500,000 Interfund loans 3,107,755 (2,459) 3,153,092 6,258,388 Intergovernmental income 97,762 - - 97,762 Net cash from noncapital financing activities 4,705,517 (2,459) 3,153,092 7,856,150 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets 126,476 - - 126,476 Acquisition and construction of capital assets (4,810,905) - - (4,810,905) Net cash from capital and related financing activities (4,684,429) - - (4,684,429) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 37,759 5,692 87,832 131,283 Net cash from investing activities 37,759 5,692 87,832 131,283 NET INCREASE IN CASH AND CASH EQUIVALENTS 890,621 265,744 2,135,332 3,291,697 CASH AND CASH EQUIVALENTS, JANUARY 1 559,817 352,309 853,759 1,765,885 CASH AND CASH EQUIVALENTS, DECEMBER 31 1,450,438$ 618,053$ 2,989,091$ 5,057,582$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)(1,189,988)$ 340,398$ (90,373)$ (939,963)$ Adjustments to reconcile operating income (loss) to Net cash from operating activities Depreciation 2,041,818 - - 2,041,818 Miscellaneous income - 2,453 - 2,453 Changes in assets and liabilities Accounts receivables (20,056) (43) - (20,099) Prepaid expenses - - (2,139,316) (2,139,316) Inventories - (73,576) - (73,576) Compensated absences - (42,289) - (42,289) OPEB items - 21,156 - 21,156 Vouchers payable - 14,412 21,046 35,458 Claims payable - - 1,103,051 1,103,051 NET CASH FROM OPERATING ACTIVITIES 831,774$ 262,511$ (1,105,592)$ (11,307)$ CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2025 (This schedule is continued on the following page.) - 151 - Equipment Fleet Replacement Services Insurance Total NONCASH ACTIVITIES Capital assets acquired through vouchers and retainage payable 134,561$ -$ -$ 134,561$ TOTAL NONCASH ACTIVITIES 134,561$ -$ -$ 134,561$ INTERNAL SERVICE FUNDS For the Year Ended December 31, 2025 CITY OF EVANSTON, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) (See independent auditor's report.) - 152 - COMPONENT UNIT - PUBLIC LIBRARY Permanent Capital Operating Endowment Improvement ASSETS Cash and investments 965,514$ 5,105,955$ -$ Property taxes receivable 13,222,903 - - Due from primary government - - - Net pension asset - IMRF - - - Capital assets not being depreciated - - - Capital assets net of accumulated depreciation - - - Total assets 14,188,417 5,105,955 - DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF - - - OPEB items - - - Total deferred outflows of resources - - - Total assets and deferred outflows of resources 14,188,417 5,105,955 - LIABILITIES Current liabilities Accounts payable 238,236 - - Accrued interest - - - Due to primary government 358,536 - - Total current liabilities 596,772 - - Noncurrent liabilities Due within one year - - - Due in more than one year - - - Total noncurrent liabilities - - - Total liabilities 596,772 - - DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF - - - OPEB items - - - Unavailable property taxes 9,486,782 - - Total deferred inflows of resources 9,486,782 - - Total liabilities and deferred inflows of resources 10,083,554 - - FUND BALANCES/NET POSITION Net investment in capital assets - - - Restricted for debt service - - - Restricted for pensions - - - Restricted for endowment - 5,105,955 - Unassigned/unrestricted 4,104,863 - - TOTAL FUND BALANCE/NET POSITION 4,104,863$ 5,105,955$ -$ CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS STATEMENT OF NET POSITION AND COMBINING BALANCE SHEET December 31, 2025 - 153 - Statement of Debt Service Total Adjustments Net Position -$ 6,071,469$ -$ 6,071,469$ 547,822 13,770,725 - 13,770,725 2,779 2,779 - 2,779 - - - - - - 311,380 311,380 - - 9,197,595 9,197,595 550,601 19,844,973 9,508,975 29,353,948 - - 1,650,491 1,650,491 - - 77,936 77,936 - - 1,728,427 1,728,427 550,601 19,844,973 11,237,402 31,082,375 - 238,236 - 238,236 - - 15,952 15,952 - 358,536 - 358,536 - 596,772 15,952 612,724 - - 719,319 719,319 - - 5,679,818 5,679,818 - - 6,399,137 6,399,137 - 596,772 6,415,089 7,011,861 - - 16,676 16,676 - - 241,965 241,965 547,822 10,034,604 - 10,034,604 547,822 10,034,604 258,641 10,293,245 547,822 10,631,376 6,673,730 17,305,106 - - 4,376,249 4,376,249 2,779 2,779 - 2,779 - - - - - 5,105,955 - 5,105,955 - 4,104,863 187,423 4,292,286 2,779$ 9,213,597$ 4,563,672$ 13,777,269$ (See independent auditor's report.) - 154 - Permanent Capital Operating Endowment Improvement REVENUES Property taxes 7,891,784$ -$ -$ Intergovernmental Grant revenue 205,304 - - Charges for services 47,726 - - Investment income 270,546 528,382 - Miscellaneous Donations 448,020 - - Other 17,814 - - Total revenues 8,881,194 528,382 - EXPENDITURES Current Community services 9,859,069 - - Debt service Principal - - - Interest - - - Total expenditures 9,859,069 - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (977,875) 528,382 - OTHER FINANCING SOURCES (USES) Transfer in 173,570 - 693,564 Transfer (out)(693,564) (173,570) - Total other financing sources (uses)(519,994) (173,570) 693,564 NET CHANGE IN FUND BALANCE (1,497,869) 354,812 693,564 FUND BALANCE (DEFICIT)/NET POSITION, JANUARY 1 5,602,732 4,751,143 (693,564) FUND BALANCE/NET POSITION, DECEMBER 31 4,104,863$ 5,105,955$ -$ STATEMENT OF ACTIVITIES AND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2025 CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS - 155 - Statement of Debt Service Total Adjustments Activities 576,946$ 8,468,730$ -$ 8,468,730$ - 205,304 - 205,304 - 47,726 - 47,726 - 798,928 - 798,928 - 448,020 - 448,020 - 17,814 - 17,814 576,946 9,986,522 - 9,986,522 - 9,859,069 1,458,701 11,317,770 370,083 370,083 (370,083) - 206,865 206,865 (34,278) 172,587 576,948 10,436,017 1,054,340 11,490,357 (2) (449,495) (1,054,340) (1,503,835) - 867,134 (867,134) - - (867,134) 867,134 - - - - - (2) (449,495) (1,054,340) (1,503,835) 2,781 9,663,092 5,618,012 15,281,104 2,779$ 9,213,597$ 4,563,672$ 13,777,269$ (See independent auditor's report.) - 156 - Original Final Budget Budget Actual Variance Taxes Property taxes 8,624,347$ 8,624,347$ 7,891,784$ (732,563)$ Intergovernmental Grant revenue 215,000 215,000 205,304 (9,696) Charges for services 22,000 22,000 47,726 25,726 Investment income 25,000 25,000 270,546 245,546 Miscellaneous Donations 400,000 400,000 448,020 48,020 Other 3,000 3,000 17,814 14,814 Total revenues 9,289,347 9,289,347 8,881,194 (408,153) General management and support 10,007,246 10,202,629 9,859,069 (343,560) Total expenditures 10,007,246 10,202,629 9,859,069 (343,560) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (717,899) (913,282) (977,875) (64,593) Transfers in 173,750 173,750 173,570 (180) Transfers (out)- - (693,564) (693,564) Total other financing sources (uses)173,750 173,750 (519,994) (693,744) NET CHANGE IN FUND BALANCE (544,149)$ (739,532)$ (1,497,869) (758,337)$ FUND BALANCE, JANUARY 1 5,602,732 FUND BALANCE, DECEMBER 31 4,104,863$ REVENUES EXPENDITURES OTHER FINANCING SOURCES (USES) CITY OF EVANSTON LIBRARY COMPONENT UNIT EVANSTON, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL LIBRARY OPERATING FUND For the Year Ended December 31, 2025 (See independent auditor's report.) - 157 - 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. 158-167 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 168-170 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. 171-174 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. 175-176 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. 177-182 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Fiscal Year 2016 2017 2018*2019 GOVERNMENTAL ACTIVITIES Net investment in capital assets 51,588$ 51,575$ 52,536$ 53,784$ Restricted 18,523 11,990 8,708 15,554 Unrestricted (170,270) (164,614) (194,435) (181,451) TOTAL GOVERNMENTAL ACTIVITIES (100,159)$ (101,049)$ (133,191)$ (112,113)$ BUSINESS-TYPE ACTIVITIES Net investment in capital assets 268,851$ 278,446$ 283,981$ 289,023$ Restricted - - - - Unrestricted 18,928 14,249 11,896 9,883 TOTAL BUSINESS-TYPE ACTIVITIES 287,779$ 292,695$ 295,877$ 298,906$ PRIMARY GOVERNMENT Net investment in capital assets 320,439$ 330,021$ 336,517$ 342,807$ Restricted 18,523 11,990 8,708 15,554 Unrestricted (151,342) (150,365) (182,539) (171,568) TOTAL PRIMARY GOVERNMENT 187,620$ 191,646$ 162,686$ 186,793$ Data Source City Finance Division *The City implemented GASB Statement No. 75 which resulted in a decrease in unrestricted net CITY OF EVANSTON, ILLINOIS NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) - 158 - 2020 2021 2022 2023 2024 2025 65,388$ 69,636$ 80,018$ 93,847$ 100,703$ 124,118$ 19,843 23,472 62,604 25,274 30,879 25,846 (199,044) (164,859) (173,298) (144,601) (149,088) (172,952) (113,813)$ (71,751)$ (30,676)$ (25,480)$ (17,506)$ (22,988)$ 284,516$ 289,165$ 289,165$ 302,774$ 302,478$ 304,071$ - - - - 271 - 16,150 20,315 20,315 19,485 21,878 21,977 300,666$ 309,480$ 309,480$ 322,259$ 324,627$ 326,048$ 349,904$ 358,801$ 358,801$ 396,621$ 403,181$ 428,189$ 19,843 23,472 23,472 25,274 31,150 25,846 (182,894) (144,544) (144,544) (125,116) (127,210) (150,975) 186,853$ 237,729$ 237,729$ 296,779$ 307,121$ 303,060$ - 159 - Fiscal Year 2016 2017 2018 2019 EXPENSES Governmental activities General management and support 18,163$ 20,890$ 20,016$ 19,444$ Public safety 55,625 61,191 80,789 56,755 Public works 13,668 24,793 22,718 26,584 Health and human resource development 3,319 3,354 3,455 2,895 Recreational and cultural opportunities 14,380 14,744 14,061 11,081 Housing and economic development 21,063 7,023 9,129 6,907 Interest 3,779 3,354 4,683 5,454 Total governmental activities expenses 129,997 135,349 154,851 129,120 Business-type activities Water 11,450 12,239 12,964 12,880 Sewer 6,683 6,540 6,735 6,492 Solid waste 4,967 4,907 4,852 5,079 Motor vehicle parking system 8,532 8,575 9,321 9,585 Total business-type activities expenses 31,632 32,261 33,872 34,036 TOTAL PRIMARY GOVERNMENT EXPENSES 161,629$ 167,610$ 188,723$ 163,156$ PROGRAM REVENUES Governmental activities Charges for services General management and support 10,094$ 8,145$ 8,985$ 8,768$ Culture and recreation 5,560 5,669 6,037 6,119 Other activities 15,739 12,712 11,945 10,917 Operating grants and contributions 6,809 5,931 5,244 5,775 Capital grants and contributions 368 325 125 8,630 Total governmental activities program revenues 38,570 32,782 32,336 40,209 Business-type activities Charges for services Water 16,419 17,588 15,642 17,789 Sewer 13,049 12,478 11,920 10,780 Solid waste 4,031 4,061 4,083 4,668 Motor vehicle parking system 6,688 6,530 6,621 10,640 Operating grants and contributions 38,400 - - - Capital grants and contributions - - - - Total business-type activities program revenues 78,587 40,657 38,266 43,877 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 117,157$ 73,439$ 70,602$ 84,086$ NET REVENUE (EXPENSE) Governmental activities (91,427)$ (102,567)$ (122,515)$ (88,911)$ Business-type activities 46,955 8,396 4,394 9,841 TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE)(44,472)$ (94,171)$ (118,121)$ (79,070)$ CITY OF EVANSTON, ILLINOIS CHANGES IN NET POSITION Last Ten Fiscal Years (amounts expressed in thousands) - 160 - 2020 2021 2022 2023 2024 2025 18,630$ 19,041$ 22,825$ 29,868$ 29,549$ 37,230$ 83,015 58,842 70,097 79,009 93,152 92,088 18,573 16,861 20,712 29,297 35,019 36,315 3,719 3,970 3,158 6,095 6,977 7,616 1,326 9,148 11,098 11,930 10,748 11,720 20,992 11,046 10,318 15,347 13,634 13,790 5,252 4,430 5,161 3,854 4,431 4,332 151,507 123,338 143,369 175,400 193,510 203,091 13,612 14,562 14,563 17,482 22,299 26,294 6,795 6,706 6,386 6,943 6,756 6,941 5,316 5,476 5,149 6,191 6,295 6,487 8,982 8,395 8,882 9,917 10,374 9,980 34,705 35,139 34,980 40,533 45,724 49,702 186,212$ 158,477$ 178,349$ 215,933$ 239,234$ 252,793$ 7,267$ 8,736$ 9,403$ 9,546$ 9,231$ 9,446$ 4,831 6,080 6,962 7,207 7,515 8,130 12,200 12,090 16,260 12,480 24,804 21,168 9,672 10,067 9,913 7,530 7,932 10,341 2,971 4,275 937 911 2,718 4,418 36,941 41,248 43,475 37,674 52,200 53,503 23,934 20,900 22,926 23,680 25,640 29,987 10,242 10,374 9,638 9,349 9,353 8,383 4,618 4,969 5,324 5,328 5,666 6,034 7,289 8,090 8,889 9,730 10,613 10,497 - - - - 3,211 709 383 - - - - - 46,466 44,333 46,777 48,087 54,483 55,610 83,407$ 85,581$ 90,252$ 85,761$ 106,683$ 109,113$ (114,566)$ (82,090)$ (99,894)$ (137,726)$ (141,310)$ (149,588)$ 11,761 9,194 11,797 7,554 8,759 5,908 (102,805)$ (72,896)$ (88,097)$ (130,172)$ (132,551)$ (143,680)$ - 161 - Fiscal Year 2016 2017 2018 2019 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities Taxes Property taxes 45,610$ 46,563$ 47,102$ 44,163$ Sales taxes 17,932 16,071 16,963 16,905 Intergovernmental - - - - Investment earnings 118 235 778 1,669 Miscellaneous 33,217 35,011 38,786 39,051 Transfers 434 3,797 1,480 8,203 Total governmental activities 97,311 101,677 105,109 109,991 Business-type activities Property taxes - - 410 820 Other taxes - - - - Investment earnings 59 114 234 565 Gains on sale of capital assets - - - 7 Miscellaneous (245) 203 - - Transfers (434) (3,797) (1,480) (8,203) Total business-type activities (620) (3,480) (836) (6,811) CHANGE IN NET POSITION Governmental activities 5,884 (890) (17,406) 21,080 Business-type activities 46,335 4,916 3,558 3,030 TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION 52,219$ 4,026$ (13,848)$ 24,110$ Data Source City Finance Division CHANGE IN NET POSITION (Continued) Last Ten Fiscal Years (amounts expressed in thousands) CITY OF EVANSTON, ILLINOIS - 162 - 2020 2021 2022 2023 2024 2025 51,655$ 53,269$ 52,498$ 54,426$ 54,020$ 52,876$ 16,445 21,497 23,443 23,725 24,771 28,349 - 4,800 7,659 7,434 9,171 3,918 423 74 1,334 5,809 5,978 4,627 34,123 42,242 51,246 46,315 50,986 45,931 10,219 2,270 4,790 5,212 7,988 8,406 112,865 124,152 140,970 142,921 152,914 144,107 1,333 1,333 1,333 1,333 1,333 950 - - - - 134 154 140 (39) - 764 827 1,453 - 217 - - - - - 379 - - - 1,276 (10,219) (2,270) (4,790) (5,212) (7,988) (8,406) (8,746) (380) (3,457) (3,115) (5,694) (4,573) (1,701) 42,062 41,076 5,195 11,604 (5,481) 3,015 8,814 8,340 4,439 3,065 1,335 1,314$ 50,876$ 49,416$ 9,634$ 14,669$ (4,146)$ - 163 - Fiscal Year 2016 2017 2018 2019 GENERAL FUND Nonspendable -$ 300$ 310$ 415$ Assigned 5,046 4,180 4,303 4,330 Unassigned 6,622 8,868 9,242 11,145 TOTAL GENERAL FUND 11,668$ 13,348$ 13,855$ 15,890$ ALL OTHER GOVERNMENTAL FUNDS Nonspendable -$ -$ -$ -$ Restricted 18,523 11,418 25,651 15,933 Committed 2,996 - - - Assigned 7,668 12,301 17,065 20,306 Unassigned (252) (204) (227) (226) TOTAL ALL OTHER GOVERNMENTAL FUNDS 28,935$ 23,515$ 42,489$ 36,013$ Data Source City Finance Division CITY OF EVANSTON, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (amounts expressed in thousands) - 164 - 2020 2021 2022 2023 2024 2025 220$ 125$ 103$ 4,407$ 339$ 11,341$ 1,573 1,807 3,345 14,589 13,367 14,612 16,882 31,739 57,675 32,703 35,315 16,508 18,675$ 33,671$ 61,123$ 51,699$ 49,021$ 42,461$ -$ -$ -$ -$ -$ -$ 19,457 27,151 22,962 25,417 29,834 26,008 - - - - - - 13,324 12,910 7,762 5,469 5,967 5,974 (215) (207) (336) (8,310) (8,255) (18,801) 32,566$ 39,854$ 30,388$ 22,576$ 27,546$ 13,181$ - 165 - Fiscal Year 2016 2017 2018 2019 REVENUES Taxes 76,047$ 78,157$ 81,281$ 78,645$ Licenses, fees, and permits 17,933 13,358 11,664 10,012 Special assessments 169 260 199 230 Intergovernmental 24,886 22,627 23,004 25,278 Charges for services 8,791 8,713 10,053 8,925 Fines and penalties 3,612 3,468 3,765 5,108 Investment earnings 118 235 778 1,669 Other revenues 3,892 3,843 5,220 12,130 Total revenues 135,448 130,661 135,964 141,997 EXPENDITURES General management and support 17,064 18,152 18,330 19,206 Public safety 62,252 64,347 65,533 65,821 Public works 13,477 14,041 22,069 15,848 Health and human development 3,021 3,111 3,142 2,989 Recreation and cultural opportunities 11,894 12,371 12,789 12,247 Housing and economic development 10,477 7,225 9,006 6,567 Capital outlay 9,953 14,953 11,399 39,796 Debt service Principal 19,661 24,253 17,557 10,166 Interest 4,276 4,040 4,536 5,749 Fiscal agent fees 14 2 537 274 Total expenditure 152,089 162,495 164,898 178,663 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (16,641) (31,834) (28,934) (36,666) OTHER FINANCING SOURCES (USES) Transfers in 16,011 17,428 20,698 14,405 Transfers (out)(15,542) (15,893) (19,174) (6,156) Proceeds from borrowing 19,652 26,558 46,892 23,976 Premium on issuance of bonds - - - - Payment to escrow agent - - - - Total other financing sources (uses)20,121 28,093 48,416 32,225 NET CHANGE IN FUND BALANCES 3,480$ (3,741)$ 19,482$ (4,441)$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 17.62%19.18%14.39%11.62% Data Source City Finance Division CITY OF EVANSTON, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (amounts expressed in thousands) - 166 - 2020 2021 2022 2023 2024 2025 82,567$ 92,738$ 98,538$ 97,260$ 95,935$ 107,359$ 11,853 11,033 12,562 9,846 21,883 17,580 185 109 318 186 189 216 27,592 38,587 43,756 41,272 46,672 34,922 7,879 10,762 14,549 13,604 14,042 16,877 2,983 3,644 3,790 4,095 3,984 4,286 423 74 1,334 5,809 5,978 4,627 6,105 6,184 4,810 3,312 8,443 3,336 139,587 163,131 179,657 175,384 197,126 189,203 18,767 19,708 24,065 29,985 34,568 37,273 66,970 67,159 66,387 81,665 89,316 91,040 18,787 20,930 23,663 24,917 33,747 36,039 3,749 4,473 4,781 5,961 7,177 7,216 9,351 11,036 11,352 12,983 18,329 15,931 9,043 10,372 11,432 14,031 12,941 11,020 12,389 2,480 6,676 7,587 6,179 2,520 9,988 9,311 10,054 9,972 9,874 10,746 5,643 5,604 5,642 5,265 5,146 5,248 214 172 7 6 162 - 154,901 151,245 164,059 192,372 217,439 217,033 (15,314) 11,886 15,598 (16,988) (20,313) (27,830) 15,633 10,831 12,292 14,324 15,098 13,819 (7,414) (9,411) (9,903) (14,573) (10,661) (6,914) 18,576 12,954 - - 17,135 - - - - - 1,033 - (12,143) (3,975) - - - - 14,652 10,399 2,389 (249) 22,605 6,905 (662)$ 22,285$ 17,987$ (17,237)$ 2,292$ (20,925)$ 11.40%10.45%9.57%8.93%7.67%8.18% - 167 - 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 2015 1,751,252,888$ 15,467$ 410,670,248$ 32,549,681$ 1,533,241$ 2,196,021,525$ 6,588,064,575$ 1.800 2016 2,151,672,082 15,467 483,830,858 33,333,491 1,559,871 2,670,411,769 8,011,235,307 1.536 2017 2,178,182,897 15,467 527,589,667 32,680,857 1,591,232 2,740,060,120 8,220,180,360 1.524 2018 2,150,065,734 15,467 537,739,734 31,050,996 1,708,983 2,720,580,914 8,161,742,742 1.604 2019 2,653,214,356 15,467 742,361,383 34,692,634 1,864,707 3,432,148,547 10,296,445,641 1.446 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 1.560 2022 3,005,718,395 15,467 705,199,673 37,413,363 2,318,541 3,750,665,439 11,251,996,317 1.332 2023 3,077,249,698 15,467 728,203,168 37,126,608 2,505,866 3,845,100,807 11,535,302,421 1.325 2024 3,071,730,719 15,468 724,595,088 37,167,486 2,377,069 3,835,885,830 11,507,657,490 1.288 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 $100 of equalized assessed value. - 168 - CITY OF EVANSTON, ILLINOIS Principal Property Taxpayers Current Year and Nine Years Ago Percentage Percentage Total of Total City Total of Total City Equalized Assessed Taxable Equalized Assessed Taxable Tax Payer Value (EAV)Rank EAV Tax Payer Value (EAV)Rank EAV ROTARY INTERNATIONAL 48,720,496$ 1 1.27%Rotary International 25,179,949$ 1 1.15% GREGOCO Orrington Own 44,986,914 2 1.17%FSP 909 Davis Street 19,966,576 2 0.91% HREX E2 DST 28,106,044 3 0.73%Lowe Enterprises 17,461,023 3 0.80% TIAA PK EVANSTON INC 25,267,887 4 0.66%McCaffery Interests 15,310,340 4 0.70% 1710 ORR HOTEL LLC 23,409,609 5 0.61%Evanston Hotel Assoc.9,784,205 5 0.45% MB SHERMAN HIGHLANDS 23,277,647 6 0.61%Inland 9,759,474 6 0.44% 900 950 CHURCH STREET 21,878,257 7 0.57%Northshore University Healthcare 9,556,069 7 0.44% RED RIVER 909 DAVIS LL 21,058,791 8 0.55%Azurri of Evanston 8,476,109 8 0.39% ALBION AT EVANSTON LLC 17,763,682 9 0.46%Target Proptx T927 7,336,363 9 0.33% FDS/DAVID ALPERSTEIN 16,850,361 10 0.44%1007 Church St LLS 7,279,722 10 0.33% Total 271,319,688$ 7.07% Total 130,109,830$ 5.92% Total EAV 3,835,885,830$ Total EAV 2,196,021,525$ Source: Cook County 2024 Levy 2015 Levy - 169 - CITY OF EVANSTON, ILLINOIS Property Tax Levies and Collections Last Ten Levy Years Tax Gross Taxes Net Taxes Collections Levy Levied for the Levied for the Percentage in Subsequent Percentage Year Fiscal Year Fiscal Year Amount of Net Levy Years Amount of Net Levy 2016 47,388,805$ 46,667,135$ 46,723,672$ 100.12%97,249$ 46,820,921$ 100.33% 2017 48,494,650 47,749,032 46,866,198 98.15%197,415 47,063,613 98.56% 2018 50,497,912 49,712,625 49,032,839 98.63%217,133 49,249,972 99.07% 2019 57,067,300 55,139,563 54,616,777 99.05%186,248 54,803,025 99.39% 2020 57,709,576 55,711,545 55,836,792 100.22%538,227 56,375,019 101.19% 2021 57,700,503 55,711,545 57,100,401 102.49%531,709 57,632,110 103.45% 2022 57,689,881 55,711,545 56,499,872 101.42%836,393 57,336,265 102.92% 2023 58,341,381 56,344,336 56,641,731 100.53%38,756 56,680,487 100.60% 2024 58,283,145 56,757,288 35,308,173 62.21%18,741,585 54,049,758 95.23% 2025 62,684,433 61,090,599 See Note See Note See Note See Note See Note Note:Levy Year 2025 is collected through December 31, 2026 Note:Levy Amounts and Receipts include Library and General Assistance, but exclude Special Service Areas and TIFs Note:Cook County experienced significant delays with issuing the bills for the second installment of the 2024 Tax Levy. This impacted when property tax revenue was received by the City and explains the significant difference in figures for that year. Source:City Finance Division Collected Receipts Total Collect Receipts in Levy Year To Date - 170 - CITY OF EVANSTON, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Net Gross General 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 Valuation1 Debt2 Available Revenues3 Debt Income Valuation Income Per Capita 2016 75,472 2,196,021,525$ 147,017,512$ 745,997$ 34,547,933$ 111,723,582$ 3,316,617,040$ 6.69%4.43%1,480$ 2017 75,557 2,670,411,769 148,627,212 241,781 37,104,152 111,281,279 3,472,297,492 5.57%4.28%1,473 2018 75,157 2,740,060,120 178,238,427 417,987 39,701,503 138,118,937 3,702,459,291 6.50%4.81%1,838 2019 74,587 2,720,580,914 195,456,220 417,431 42,263,176 152,775,613 3,857,863,401 7.18%5.07%2,048 2020 73,979 3,432,148,547 199,878,623 721,459 38,634,626 160,522,538 3,971,562,615 5.82%5.03%2,170 2021 78,454 3,461,647,470 196,907,459 8,675,881 37,196,303 151,035,275 4,520,990,204 5.69%4.36%1,925 2022 77,181 3,220,856,133 184,568,601 8,476,464 35,881,685 140,210,452 4,930,939,728 5.73%3.74%1,817 2023 76,552 3,750,665,439 171,822,893 7,747,535 33,974,009 130,101,349 5,051,513,376 4.58%3.40%1,700 2024 76,552 3,845,100,807 192,333,840 8,895,276 47,135,293 136,303,271 5,051,513,376 5.00%3.81%1,781 2025 76,340 3,835,885,830 178,016,933 11,256,119 44,442,991 122,317,823 5,092,794,080 4.64%3.50%1,602 1Equalized assessed values do not include tax increment financing district incremental equalized assessed values. 2Excludes limited purpose special service district bonds. 42024 data not available for Personal Income or Population Data, so 2023 data was used Source: Cook County and City Finance Division 3These 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. 4 4 4 - 171 - CITY OF EVANSTON, ILLINOIS Ratio of Outstanding Debt by Type Last Ten Fiscal Years Fiscal General Special General Water Total Percentage Year Obligation Service District Obligation Revenue IEPA and WIFIA Primary of Personal Per Ended Bonds Bonds Capital Lease Bonds Bonds Loans Government Income Capita 2016 116,091,162$ -$ -$ 30,926,350$ -$ 45,256,237$ 192,273,749$ 5.80%2,548$ 2017 122,151,162 - - 26,476,050 - 40,328,108 188,955,320 5.44%2,501 2018 151,056,754 - - 27,182,674 - 34,921,821 213,161,249 5.76%2,836 2019 164,873,935 - - 30,582,285 - 40,691,551 236,147,771 6.12%3,166 2020 161,243,997 - - 38,634,626 - 43,407,478 243,286,101 6.13%3,289 2021 159,711,156 - - 37,196,303 - 40,272,232 237,179,691 5.25%3,023 2022 148,686,916 - - 35,881,685 - 47,503,827 232,072,428 4.71%3,007 2023 137,848,884 - - 33,974,009 - 53,309,667 225,132,560 4.46%2,941 2024 145,198,547 - - 47,135,293 - 70,620,282 262,954,122 5.21%3,435 2025 133,573,939 - - 44,442,993 - 71,995,888 250,012,820 4.91%3,275 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Note: See the Schedule of Demographics and Economic Statistics for personal income and population data. Source: City Finance Division Governmental Activities Business- Type Activities - 172 - Percentage of Debt The City's Total Applicable Share of Debt Outstanding to the City (1) Direct debt - bonds, notes, and contracts outstanding 133,573,939$ 100.00%133,573,942$ Other bonded debt by taxing body High School District 202 18,390,000 91.19%16,769,841 School District 65 55,561,193 91.19%50,666,252 Community College District 535 51,230,000 12.68%6,495,964 Cook County 1,760,191,750 1.84%32,387,528 Cook County Forest Preserve District 70,975,000 1.84%1,305,940 Metropolitan Water Reclamation District 2,555,076,024 1.87%47,779,922 Skokie Park District 25,795,651 0.79%203,786 Total Overlapping Debt 4,537,219,618 155,609,231 Total Direct and Overlapping Debt 4,670,793,557$ 289,183,173$ (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, 2025 - 173 - 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, 2025 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.” - 174 - CITY OF EVANSTON, ILLINOIS Principal Employers Current Year and Nine Years Ago Employer Employees %Rank Employer Employees %Rank Northwestern University 6,430 33%1 Northwestern University 7,333 44%1 Northshore University Health System 4,483 23%2 Northshore University Healthcare 4,114 25%2 PT Solutions Holdings 2,000 10%3 Evanston School District 65 1,137 7%3 Evanston School District 65 1,492 8%5 St. Francis Hospital 1,000 6%4 KPFF, Inc.1,300 7%4 City of Evanston 824 5%5 City of Evanston 894 5%6 School District 202 575 3%6 Presence Saint Francis Hospital 800 4%7 Rotary International 533 3%7 School District 202 673 3%8 Presbyterian Homes/McGaw Care 490 3%8 FourGen Holdings, Inc.631 3%9 C.E. Neihoff & Co 350 2%9 Right at School, LLC 586 3%10 Whole Foods 300 2%10 Total 19,289 Total 16,656 Source: City Economic Development Division 2025 2016 - 175 - 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 2015 75,603 3,235,052,370$ 42,790$ 35.2 94.0%10,671 7.3% 2016 75,472 3,316,617,040 43,945 35.3 94.0%10,640 6.2% 2017 75,557 3,472,297,492 45,956 36.0 93.4%10,899 5.0% 2018 75,157 3,702,459,291 49,263 36.2 93.4%10,980 4.1% 2019 74,587 3,857,863,401 51,723 36.1 93.7%10,802 4.2% 2020 73,979 3,971,562,615 53,685 36.2 94.2%10,355 5.0% 2021 78,454 4,520,990,204 57,626 36.6 95.4%10,946 5.6% 2022 77,181 4,930,939,728 63,888 37.6 95.8%10,552 6.1% 2023 76,552 5,051,513,376 65,988 38.0 96.4%10,557 6.3% 2024 76,340 5,092,794,080 66,712 38.4 96.5%10,296 6.2% Note:2025 data not yet available through US Census Source:United States Census Bureau Tables DP03, DP05, S1401, S1501 Using 5-Year Estimates - 176 - CITY OF EVANSTON, ILLINOIS Budgeted Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years Fund/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Fund City Clerk 2.00 2.00 1.00 2.00 1.00 2.00 1.00 2.00 2.00 2.00 City Manager's Office 28.50 32.00 30.00 27.50 28.50 28.50 29.50 32.90 36.50 54.00 Law 8.00 4.50 4.50 4.50 4.50 4.50 7.00 7.00 9.00 9.00 Administrative Services 57.20 57.70 55.70 53.10 54.10 54.50 59.00 65.00 68.00 53.00 Community Development 21.50 26.25 22.00 23.50 25.75 30.15 27.45 29.40 32.50 34.75 Police 225.50 225.80 220.00 217.00 216.00 201.00 201.00 201.00 203.00 203.00 Fire 110.00 110.00 110.00 110.00 110.00 110.00 110.50 118.50 118.50 118.50 Human and Health Services 21.10 21.10 21.75 17.75 8.75 8.75 13.25 11.45 12.25 13.00 Parks and Recreation 77.13 78.83 76.13 75.46 69.08 69.21 73.71 84.84 86.48 86.98 Public Works 84.25 84.25 72.50 70.00 71.00 69.00 78.00 78.50 81.50 83.50 Total General Fund 635.18 642.43 613.58 600.81 588.68 577.61 600.41 630.59 649.73 657.73 ARPA Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 General Assistance Fund 4.00 4.00 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 0.00 0.00 0.00 0.00 17.90 17.90 17.00 22.10 21.30 26.55 Sustainability Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.50 2.50 3.50 Emergency Telephone System (E911) Fund 5.00 5.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 6.00 CDBG Fund 2.80 2.50 2.75 2.90 4.40 2.90 5.60 6.00 4.70 2.60 HOME Fund 0.50 0.50 0.35 0.35 0.35 0.73 0.70 0.70 0.60 0.35 Affordable Housing Fund 1.75 1.75 1.75 1.75 1.50 1.43 1.35 1.10 0.40 1.15 Parking Fund 15.50 15.50 18.00 19.00 17.00 16.50 16.00 16.00 14.00 10.50 Water Fund 44.50 44.50 45.75 45.25 46.25 47.75 48.25 56.25 58.33 58.33 Sewer Fund 11.33 11.33 12.25 12.25 12.25 12.75 11.75 11.75 12.50 12.50 Solid Waste Fund 9.66 9.66 10.50 11.50 13.50 13.50 15.50 15.50 16.67 16.67 Fleet Services Fund 12.50 12.00 9.50 9.90 9.90 10.00 11.00 12.00 12.00 12.50 Library Fund 66.87 73.88 71.05 69.81 78.45 78.04 79.58 78.93 81.20 80.83 Neighborhood Stabilization Program1 0.45 0.30 0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Economic Development Fund2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Improvements Fund3 0.00 0.00 4.50 4.50 4.50 4.50 0.00 0.00 0.00 0.00 Insurance Fund4 5.00 5.50 5.50 5.50 5.50 5.50 0.00 0.00 0.00 0.00 Total Non-General Funds 179.86 186.42 191.30 191.96 220.75 221.75 216.98 233.08 234.45 236.73 Total All Funds 815.04 828.85 804.88 792.77 809.43 799.36 817.39 863.67 884.18 894.46 1Positions in Neighborhood Stablization Program were rolled into the CDBG Fund in 2019 2Positions in the Economic Development Fund were rolled into the General Fund (CMO) in 2016 3Positions in the Capital Improvements Fund were rolled into the General Fund (Public Works) in 2022 4Positions in the Insurance Fund were rolled into the General Fund (Law) in 2022 Source: City of Evanston HR Division Human Services Fund - 177 - CITY OF EVANSTON, ILLINOIS Property Tax Rates per $100 - Direct and Overlapping Governments Last Ten Levy Years Government Unit 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 City of Evanston1 1.800 1.536 1.524 1.604 1.446 1.452 1.560 1.332 1.325 1.288 City of Evanston Library Fund 0.282 0.241 0.247 0.254 0.218 0.216 0.233 0.208 0.221 0.231 Consolidated Elections 0.034 - 0.031 - 0.030 - 0.019 - 0.032 - Cook County 0.552 0.533 0.496 0.489 0.454 0.453 0.446 0.431 0.386 0.390 Cook County Forest Preserve District 0.069 0.063 0.062 0.060 0.059 0.058 0.058 0.081 0.075 0.069 Metropolitan Water Reclamation District 0.426 0.406 0.402 0.396 0.389 0.378 0.382 0.374 0.345 0.340 North Shore Mosquito Abatement District 0.012 0.010 0.010 0.010 0.009 0.009 0.009 0.008 0.008 0.007 Community College 535 0.271 0.231 0.232 0.246 0.221 0.227 0.252 0.221 0.227 0.237 School District 202 2.792 2.332 2.329 2.462 2.024 2.072 2.286 2.060 2.112 2.202 School District 65 3.810 3.676 3.673 3.891 3.185 3.258 3.593 3.230 3.322 3.470 Total Tax Rate for Property not in Park District 10.048 9.028 9.006 9.412 8.035 8.123 8.838 7.945 8.053 8.234 Percent of Total Tax Rate Levied by City of Evanston 17.91%17.01%16.92%17.04%18.00%17.88%17.65%16.77%16.45%15.64% 1City of Evanston rate includes General Assistance. Does not include Library Fund or Special Service Areas Note:2025 data not available Note:This table excludes partial taxing districts, such as Ridgeville Park District, Skokie Park District, and School District 73 1/2, which only impact a small portion of Evanston residents. Source:Cook County Assessor's Office - 178 - CITY OF EVANSTON, ILLINOIS Water Sold by Type of Customer (in 100 cubic feet) Last Ten Fiscal Years Type of Customer 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Single-Family 916,853 1,070,119 1,068,781 1,029,919 1,177,703 999,810 897,739 887,598 837,026 876,032 Multi-Family 1,140,860 1,215,640 1,275,855 1,178,104 1,237,476 1,098,479 104,867 1,048,792 1,021,350 1,021,447 Residential Subtotal 2,057,713 2,285,759 2,344,636 2,208,023 2,415,179 2,098,289 1,002,606 1,936,390 1,858,376 1,897,479 Commercial 1,061,080 1,115,236 1,083,414 1,154,229 953,343 925,927 885,367 845,818 841,895 888,943 Industrial 9,808 12,777 16,405 14,182 12,604 10,589 9,233 8,797 8,707 8,676 Business Subtotal 1,070,888 1,128,013 1,099,819 1,168,411 965,947 936,516 894,600 854,615 850,602 897,619 City 14,351 16,776 19,137 17,515 11,780 14,633 1,854 15,682 13,684 12,656 Parks 5,969 7,728 5,984 7,429 8,720 13,267 10,588 12,110 14,222 11,736 Schools 37,645 43,043 46,941 44,121 21,706 24,746 33,715 34,806 34,865 32,826 Public Subtotal 57,965 67,547 72,062 69,065 42,206 52,646 46,157 62,598 62,771 57,218 Overall Total 3,186,566 3,481,319 3,516,517 3,445,499 3,423,332 3,087,451 1,943,363 2,853,603 2,771,749 2,852,316 Total direct rate per 100 cubic feet 2.18$ 2.31$ 2.47$ 2.74$ 2.74$ 2.89$ 3.17$ 3.33$ 3.91$ 4.82$ Source: City of Evanston Public Works Agency - 179 - CITY OF EVANSTON, ILLINOIS Water Sold by Major Customers Last Ten Fiscal Years Type of Customer 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Evanston residents/businesses 6,987,878$ 7,278,627$ 7,631,465$ 8,235,089$ 8,613,315$ 8,636,384$ 9,066,546$ 9,430,024$ 11,252,068$ 13,721,992$ Village of Skokie 2,941,912 3,635,940 5,773,487 5,572,511 5,455,762 3,491,947 3,335,672 3,495,675 3,215,905 3,575,037 Northwest Water Commission 5,695,812 5,898,634 5,930,626 5,416,394 5,549,357 5,670,328 6,625,624 6,825,485 7,164,185 7,697,238 Morton Grove and Niles - - 27,677 1,075,089 1,918,954 1,813,040 2,077,157 1,933,644 2,024,170 2,151,963 Village of Lincolnwood - - - - 352,370 509,932 931,224 964,398 1,033,869 1,084,747 Total 15,625,602$ 16,813,201$ 19,363,255$ 20,299,083$ 21,889,757$ 20,121,631$ 22,036,223$ 22,649,226$ 24,690,197$ 28,230,977$ Source: City Utilities Department - 180 - CITY OF EVANSTON, ILLINOIS Operating Indicators by Function/Programs Last Ten Years Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police Violent offenses 130 122 140 73 88 96 114 124 111 110 Property offenses 1,681 1,777 1,708 1,979 1,481 2,453 2,910 3,439 3,104 2,789 911 calls received 42,763 38,525 36,642 39,357 38,279 40,924 39,634 41,258 41,395 41,770 Fire Emergency responses 10,267 10,058 10,014 10,256 9,091 9,867 11,083 11,084 12,063 12,303 Fires extinguished 114 90 111 69 77 89 105 106 105 78 Inspections 760 1,267 1,275 446 728 850 900 901 900 607 EMS Responses (reported beginning 2016)6,441 6,456 6,419 6,678 5,912 6,529 7,542 7,543 8,277 8,612 Parks and Recreation Athletic field usage (hours)27,426 22,920 24,263 22,054 8,749 17,287 18,868 20,678 21,073 10,292 Picnic permits issued 229 652 572 641 94 644 650 677 658 656 Library Volumes in collection (online & physical materials)534,533 540,696 514,756 562,567 535,527 424,619 654,134 557,615 305,843 295,498 Total volumes borrowed 1,078,653 1,039,585 1,207,419 1,191,600 699,631 1,139,779 964,682 1,001,132 1,018,946 972,387 Water New connections 3 3 7 15 8 10 7 11 - 6 Water main breaks 28 28 32 28 29 40 39 34 31 44 Average daily consumption (millions of gallons)39.65 39.645 41.122 43.151 46.5 48.30 46.00 46.08 46.65 47.80 Peak daily consumption (millions of gallons)55.08 55.084 55.291 60.248 62.63 66.500 60.760 65.652 63.632 59.613 Other Public Works Street resurfacing (estimated miles)2.9 2.9 2.9 1.9 2.9 2.7 2.65 1.60 2.50 3.30 Note: Indicators are not available for general government functions - 181 - CITY OF EVANSTON, ILLINOIS Capital Assets Statistics by Function Last Ten Years Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police Number of stations 1 1 1 1 1 1 1 1 1 1 Budgeted sworn officers 165 165 165 166 154 153 153 153 153 153 Fire Fire Stations 5 5 5 5 5 5 5 5 5 5 Budgeted sworn firefighters 107 107 107 107 107 107 107 115 115 115 Parks and Recreation Acreage 290 290 290 290 290 290 290 290 290 290 Playgrounds 51 51 60 60 60 60 60 60 60 60 Baseball/softball diamonds 18 18 13 16 16 16 16 16 16 16 Soccer/football fields 27 27 27 27 27 27 27 27 27 27 Community centers 6 7 7 7 7 7 7 8 8 8 Water Water mains (miles)155.6 155.6 155.8 157.5 156.2 156.0 156.0 156.1 156.1 155.9 Fire hydrants 1,490 1,490 1,508 1,511 1,501 1,522 1,531 1,535 1,533 1,541 Storage capacity (millions of gallons)22 22 22 22 22 22 22 22 22 22 Other Public Works Streets (miles)147 147 147 147 147 147 147 147 147 147 Streetlights 5,736 5,736 5,736 5,641 5,641 5,675 5,675 5,675 5,680 5,690 Street resurfacing (estimated miles)2.90 2.90 2.90 1.90 2.90 2.65 2.65 1.60 2.50 3.30 Note: No capital asset indicators are available for the general government or library function Source: Various City departments; Budget Source: City Finance Division - 182 -