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Home My WebLink About2025 Popular Annual Financial Report;--- �7--q e, 1w, id wIld r4 CITY OF EVANSTON, ILLINOIS POPULAR ANNUAL : iF Y FINANCIAL REPORT*.f. For the year ended December 31 "2025*' n City of Evanston Letter from the City To the Residents of Evanston, The City of Evanston is committed to a policy of transparency in its budget process and financial information. To continue this long-standing practice, we are pleased to present the City's Popular Annual Financial Report (PAFR) for the fiscal year ended December 31, 2025. The PAFR is a snapshot of information from the City's Annual Comprehensive Financial Report (ACFR) which represents the City's audited financial statements for Fiscal Year 2025. The City received a favorable opinion from independent auditors affirming that the financial statements contained within the ACFR are presented in conformity with the generally accepted accounting principles (GAAP) for local governments and municipalities. The PAFR is intended to provide the reader with a general understanding of the City's financial activities. Please note that while Evanston Public Library (EPL) is a component unit of Evanston's government, not all EPL financial information is contained in this report. The current and prior year ACFRs, along with the City's monthly financial reports and annual budget, are available on the City's website. We hope this report provides you with an increased understanding of the City's finances. Sincerely, The City Manager's Office, Finance Division G G G Government Finance Officers Association Government Finance Officers Association GOVERNMENT FINANCE OFFICERS ASSOCIATION Certificate of Award for Achievement Outstanding Distinguished for Excellence Achievement in Budget Presentation in Financial Popular Annual g Reporting Financial Reporting Award PRESENTED TO Presented to Presented to Cityof Evanston City of Evanston City of Evanston Illinois Illinois Illinois For its Annual Comprehensive For the Fiscal Year Begiming Financial Report For its Annual Financial Report For the Fiscal Year Ended For the Fiscal Year Ended January 01, 2025 December 31, 2024 December 31, 2024 C..rp�. R �!'.tR•lt «.prt� R.+�✓t Ezecuti eDirectur Exe u- Director/CEO E—uti ro Director/CEO WINNERS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended December 31, 2024. To be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized Annual Comprehensive Financial Report (ACFR). This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City has submitted its 2025 ACFR to determine its eligibility and believes it will continue to meet the Certificate of Achievement Program's requirements. In addition, the City received the GFOA's Award for Outstanding Achievement in Popular Annual Financial Reporting to the City for its PAFR for the fiscal year ended December 31, 2024. To be awarded an Outstanding Achievement in Popular Annual Financial Award, the government's published PAFR was judged to be easily understandable to the general public and other parties within a background in public finance. Having received the Certificate of Excellence in Financial Reporting, Award for Outstanding Achievement in Popular Annual Financial Reporting, and Award for Distinguished Budget Presentation for the 2025 fiscal year, the City of Evanston was recognized as a GFOA Triple Crown Winner for the second year in a row. 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 receiving this GFOA budget award for many years. vanston, IL The City of Evanston constitutes many communities, perspectives, and qualities as a Chicago suburb with a major university, urban center, and lakefront. Evanston has apartments, condominiums, and student housing; its residents are commuters and locally employed workers; its downtown is prospering, and neighborhood commercial centers are also stable. It is a part of the Chicago -land economy and has a vigorous commercial and professional economy of its own. A population of approximately 78,000 is diverse by race, religion, age, education, economics, and occupation. With 10,000 people per square mile, Evanston has double the population density of the average North and Northwest suburb, and approximately half the density of Chicago. The City has over 260 acres in 76 parks and 6 beaches. Evanston is contiguous with Chicago, and only 13 miles by rapid transit, commuter rail, expressway, or parkway from downtown Chicago. It borders the north shore communities of Skokie and Wilmette. In 1863,the Village of Evanston was incorporated as a town, and after several annexations in 1892, the town became a City. The City's southern boundary of approximately eight square miles was established with the City of Chicago and the present City limits. The City also has four miles of shoreline along Lake Michigan. Evanston is the home of Northwestern University, aptly named to serve the Northwest Territory. The University first platted the village which surrounded it. The continued vitality of the University and the cooperative relationship between the City and University adds to the total Evanston community. Sources: 2024 US Census and City Economic Development Division Median Household Income $96,434 Median Property Value $481,200 Unemployment Rate 6.2% Largest Employers Northwestern University Northshore University Health System PT Solutions Holdings Evanston School District 65 KPFF, Inc. No. of Employees 6,430 4,483 2,000 1,492 1,300 �STA�ACES��L �..•.. R4 Lt City Festivals, Events, and Concerts • Umbrella Arts Festival (May 30, 2026) • Evanston Rides! (May - Oct) • Starlight Concert and Movie Nights (June - Aug) • Evanston Arts and Big Fork Festival (Aug 22-23, 2026) • Evanston Folk Festival (Sept 11-12, 2026) See the the City's full events calendar at: www.cityofevanston.org/calendar.php 1st Ward Clare Kelly Email: ckelly@cityofevanston.org 4th Ward Jonathan Nieuwsma Email: jnieuwsma@cityofevanston.org 1F-Iytel .Z Mayor: Daniel Biss Email: dbiss@cityofevanston.org CITY COUNCIL MEMBERS 2nd Ward Krissie Harris Email: kharris@cityofevanston.org 5th Ward Bobby Burns Email: bburns@cityofevanston.org 3rd Ward Shawn Iles Email: siles@cityofevanston.org 6th Ward Thomas M. Suffredin Email: tsufredin@cityofevanston.org 7th Ward 8th Ward 9th Ward Parielle Davis Matt Rodgers Juan Geracaris Email: parielledavis@cityofevanston.org Email: mrodgers@cityofevanston.org Email: jeracaris@cityofevanston.org FINANCIAL HIGHLIGHTS 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 0.44% from the prior period. Total Assets and deferred outflows decreased by $4,5591,290; and total liabilities and deferred inflows of resources decreased by $530,639. The below Statement of Net Position reflects Evanston's financial position as of December 31, 2025. Statement of Net Position Governmental Activities Business -Type Activities Total Primary Government 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 6507938,051 Net Investment in Capital Assets 124,117,932 100,702,714 304,071,305 316,807,501 428,189,237 417,510,215 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 7,548,383 (150,974,778) (141,539,584) Restatement - - - - - - Total Net Position $ (22,988.063) $ (17,506,098) $ 326.048.153 $ 324.626.839 $ 303.060,090 $ 307.120.741 • Assets - Resources owned and controlled by the City that are expected to benefit future operations. • Deferred Outflows - The consumption of net assets applicable to future reporting periods. • Liabilities - Debt or expense obligations that the City must pay. • Deferred Inflows - The acquisition of net assets applicable to future reporting periods. • Net Investment in Capital Assets - The book value of capital assets less any long-term debt outstanding issued to construct capital assets. • Net Position - Represents the City's net worth (Net Position = Assets + Deferred Outflows - Liabilities -Deferred Inflows) What is Fund Accounting? The City uses funds to report on both its financial position and results of its operations. Fund accounting is designated to demonstrate legal compliance and to aid in financial management by segregating transactions related to certain City functions or activities. Each fund is a separate, self -balancing accounting entity. In the City, there are three categories of funds: Governmental, Proprietary and Fiduciary. Governmental Funds Governmental funds are used to account for all or most of the City's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of capital assets (capital project funds), and the servicing of general long-term debt (debt service funds). Proprietary/Enterprise Funds An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery -direct, indirect, and capital costs —are identified. Fiduciary Funds Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private- purpose trust funds, and agency funds. Fund Structure The City's Budget is divided into 40 funds and organized by departments. Funds are the largest financial unit of the City's budget. Departments are functional units of government, and lay across the City's funds. The funds are categorized into different types, as shown in the table below. General Funds 100 General Fund Special Revenue Funds 170 American Rescue Plan 130 Parks and Recreation Fund 175 General Assistance Fund 176 Human Services Fund 177 Reparations Fund Debt Service Funds 320 Debt Service Fund 178 Sustainability Fund 330 Howard -Ridge TIF Fund 180 Good Neighbor Fund 335 West Evanston TIF Fund 200 Motor Fuel Tax Fund 340 Dempster -Dodge TIF Fund 205 Emergency Telephone (E911) Fund 345 Chicago -Main TIF Fund 215 CDBG Fund 365 Five Fifths TIF Fund 220 CDBG Loan Fund 350 Special Service Area (SSA) #6 235 Neighborhood Improvement 355 Special Service Area (SSA) #7 240 Home Fund 360 Special Service Area (SSA) #8 250 Afforable Housing Fund 210 Special Service Area (SSA) #9 Internal Service Funds 600 Fleet Services Fund Capital Project Funds 415 Capital Improvements Fund 601 Equipment Replacement Fund 416 Crown Contruction Fund 605 Insurance Fund 417 Crown Community CTR Maintenance Pension Trust Funds 705 Police Pension Fund 420 Special Assessment Fund 700 Fire Pension Fund Enterprise Funds 505 Parking System Fund Component Unit Funds 185 Library Fund 510 Water Fund 186 Library Debt Service Fund 515 Sewer Fund 187 Library Capital Improvement 520 Solid Waste Fund FY 2025 Governmental Activity Revenue For the fiscal year ended December 31, 2025, the City of Evanston's governmental activity generated revenues from various sources to support public services and operations. Here's a breakdown of the key revenue sources: Property Taxes: The City's largest source of revenue, property taxes are vital for funding essential services like public safety, education, and infrastructure. Charges for Services: Fees collected for specific services provided by the city, such as utilities, parking, and recreation programs. Sales Taxes: Taxes imposed on the purchase of tangible personal property at the point of sale. Evanston receives both a state and home rule sales tax. Income Taxes: State tax levied upon all income received by individuals, trusts and estates. The City receives these on a per capita basis from the State of Illinois. Utility Taxes: Taxes levied upon the gross receipts of electricity and gas utility sales. Other Revenue: City revenues including capital and operating grants, fines, and interest earnings. Governmental Activity Revenues $70 $60 $50 $40 $30 $20 $10 $0 Property Charges for Sales Taxes Income Taxes Utility Taxes Other Taxes Services Revenue FY25 Amount ■FY24 Amount ■FY23 Amount Revenue Source FY25 Amount FY24 Amount FY23 Amount Property Taxes $52,876,168 $54,019,576 $54,425,981 Charges for Services $38,744,056 $41,549,567 $29,232,736 Sales Taxes $28,349,072 $24,771,263 $23,725,230 Income Taxes $14,145,983 $13,446,239 $12,558,980 Utility Taxes $6,458,716 $5,850,776 $6,176,206 Other Revenue $48,629,364 $57,489,973 $49,265,034 TOTAL $189,203,359 $197,127,394 $175,384,167 FY 2025 Governmental Activity Expenditures For the fiscal year ended December 31, 2025, the City of Evanston's governmental activity incurred costs across several key areas to provide public services and conduct daily operations. Public Safety: The largest portion of the budget, this expense reflects the City's focus on safety and law enforcement. Public Works: Funds allocated for maintaining and improving the City's infrastructure and public spaces. General Management: Administrative and support functions necessary for the efficient operation of the City's government. Housing & Development (H&D): Expenses related to housing initiatives and community development projects. Recreational & Cultural Opportunities: Expenses related to programming from the Evanston Parks & Recreation department as well as other cultural and enrichment programs. Health & Human Resources (HHR): Public health services and human resource management. Governmental Activity Expenditures w $100 c g $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Public Safety Public Works General Management Expenditure Source Public Safety General Management Public Works H&D Rec & Cultural Opps HHR TOTAL III ■ FY25 Amount ■FY24 Amount ■FY23 Amount son Rec & Cultural opps FY25 Amount FY24 Amount $92,087,925 $93,152,007 $37,229,633 $29,548,742 $40,647,148 $39,450,399 $13,789,906 $13,634,282 $11,720,418 $10,748,433 $7,615,934 $6,977,088 $203,090,964 $193,510,951 MEN HHR FY23 Amount $79,009,306 $29,867,575 $33,151,860 $15,346,710 $11,929,994 $6,095,290 $175,400,735 FY 2025 Business -Type Activities The City's Business -Type Activities refer to services the City provides and for which the City charges customers a fee. Evanston has 4 Enterprise Funds that fall under this category: Water Fund: To account for all activity related to providing water to Evanston residents, the Villages of Skokie and Lincolnwood, the Northwest Water Commission and the Morton Grove Niles Water Commission. All activities necessary to provide such services are accounted for in this fund, including, but not limited to: administration, operation, maintenance, debt service, and billing/collection. Parking Fund: To account for all City -owned parking facilities/garages, lots, and metered spaces. All activities are accounted for including administration, operations, financing, and revenue collection. Enterprise Fund Revenue FY25 FY24 FY23 Charges for Services $54,900,704 $51,272,632 $48,087,216 Investment Income $1,452,883 $826,584 $763,849 Grants and contributions $708,582 $3,210,809 $0 Property Taxes $950,000 $1,332,500 $1,332,500 Other Revenue $1,516,917 $133,582 $0 TOTAL $59,529,086 $56,776,107 $50,183,565 FY25 FY24 FY23 Enterprise Fund Expenditures 0% 20% 40% 60% 80% 100% ■ Water ■ Motor Vehicle Parking System ■ Sewer ■ Solid Waste Solid Waste Fund: To account for all activity related to refuse, recycling, and yard waste collection and disposal. Activities necessary to provide such service include, but are not limited to: administration, operations and revenue collection. Sewer Fund: To account for all activity related to providing sewer service to City residents and businesses. Activities necessary to provide such service include, but are not limited to: administration, operations, financing, capital improvements/maintenance, and billing/collection. FY25 , FY24 ' FY23 ' 0% Enterprise Fund Revenues 20% 40% 60% 80% 100% ■ Charges for Services ■ Investment Income ■ Grants and contributions ■ Property Taxes ■ Other Revenue Enterprise Expenditures FY25 FY24 FY23 Water $26,294,266 $22,299,358 $17,482,399 Motor Vehicle Parking System $9,979,695 $10,373,890 $9,916,592 Sewer $6,940,832 $6,755,584 $6,942,639 Solid Waste $6,487,339 $6,294,948 $6,191,417 TOTAL $49,702,132 $45,723,780 $40,533,047 Long -Term Debt The City issues general obligation bonds for capital improvement projects. Bonds issued for general city projects are repaid by property taxes. This is the City's unabated debt. Some bonds for certain projects may be supported by other revenue sources, including water and sewer fees, special assessment, tax increment financing (TIF) funds, or outside donations. This is the City's abated debt. Excluding the library, as of December 31, 2025, the City had outstanding total general obligation bonded debt of $166,707,324. Of this, $41,677,522 was for business -type activities to be paid for by the City's Water, Solid Waste and Sewer Funds (abated). An additional $6,913,496 is abated by special assessments, TIFs and other funding sources, leaving $125,029,802 in unabated general obligation bonded debt. The City's general obligation debt service principal payments for 2025 totaled $13,199,917. Investment Grade Unabated GO Debt Payment Schedule 2025-2043 (Excludes Library Debt) $200 o $180 $160 $140 $120 $100 $80 $60 $0 pLy O��O O�1 Oy0 OL° OHO Os� OOti O�� Oi 0�0 OHO 001 000 OOA OAO Obi Obti OAS O� ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ■ Cumulative Principal ■ Cumulative Interest Standard & Poor's (S&P)J AAA AA+ AA AA- A+ A A - BBB+ BBB+ BBB - BB+ BB B B- B+ B B- ccc+ ccc ccc- cc c D City Credit Rating The rating agencies Moody's, Standard & Poor's, and Fitch routinely evaluate the creditworthiness of municipalities like Evanston. These evaluations provide an assessment of a community's ability to meet its financial obligations and influence the interest rate it may receive on bond issuances. Ratings range from high triple A (strongest) to low C or D Qunk). The City's General Obligation Bonds are currently rated as AA (stable outlook) by S&P. The City's most recent bonds were issued in FY 2026. FY 2025 Tax Summary The largest tax revenues in Evanston come from property taxes, sales and home rule taxes, and per capita state income taxes. The City also collects a series of other taxes, including utility taxes, Personal Property Replacement Taxes (PPRT), and Real Estate Transfer Taxes. Tax Revenues FY25 Property Tax $52.876.168 Sales and Home Rule Tax $28.349.072 Income Tax $14.145.983 Utility Tax $6,458.716 Personal Property Replacement Taxes S2.098.324 Liquor Tax $3,289.121 Real Estate Transfer Tax $4.674.099 Parking Tax $2.967.907 Other Taxes $8.743.603 Total $123,602,993 FY24 $54.019.576 S24.771.263 $13.446,239 $5.850,776 $2.457.303 $3.217.898 $4,083.708 $3.093.968 S 11.209.752 $122,150,483 FY23 S54,425.981 S23.725.230 S12.558,980 S6.176.206 $4.087,124 S3.772.043 $3.310,770 S2.952.554 S10.544.622 $121,553,510 FY 2025 Property Tax Summary The largest tax revenue in Evanston comes from property taxes. Property taxes paid by Evanston residents go to multiple taxing bodies. For every dollar of property tax paid by a resident of Evanston, 16 cents goes to the City, and an additional 3 cents goes to the Evanston Public Library.* FY25 FY24 FY23 Governmental Fund Property Tax Revenue $52.876.168 $54.019,576 $54.425.981 Solid Waste Property Tax Revenue $950.000 $1.332,500 S1.332.500 Library Property Tax Revenue $7.891.784 $8,835,845 S8.253.648 16.2% Cityof Evanston 41.4% School District 65 � oo 13.3% Cook County 8 Other Taxing Districts JUr0 to -4) :4 t l :-I ' r: 4 Pb , i :4_ f :N : a + :•*,'I 1 7y :At 111: t'\ITI;i) tirl:vrt.,s c r,t3ll:ltl �orc is uau Tuet� L 11180916 12 180916 G L 2.8% Evanston Public Library ^-•- 12 26.3% J School District 202 *Based on 2023 Rates (paid in 2024) Infrastructure and Capital Investments in 2025 In 2025, the City's adopted budget included a Capital Improvement Plan (CIP) of $84.5 million to invest in City Infrastructure and Facilities. Major projects include: Water Intake Project - The Water Filtration Plant is served by three raw water intakes extending into Lake Michigan. Each is comprised of an intake structure and pipeline. It is beyond its useful life, is performing under capacity, and is in need of replacement. In 2023, the five year project to replace the intake began. Independence Park Renovations - The Independence Park renovation added a larger, modern playground, improved pathways and lighting, refreshed landscaping, and new benches and site features to make the park safer, more accessible, and welcoming. A new seating plaza and small stage were also built for community gatherings. Capital Investment Revenues and Expenditures in 2026 In 2026, the City's CIP has a budget of $90,518,361. FY 2026 CIP Revenues Other AA0/ Gn 6 Water and Sewer Fees 10% FY 2026 CIP Expenditures 505 - Parking Fund - 215- CDBG Fund 1% 1% 187- Li 200- Motor Fi 45 s 515- Sewer F 7% CIP Revenues FY26 Amount CIP Expenditures FY26 Amount Bonds $52,126,000 415- Capital Improvements Fund $37,628,000 Loans $11,475,000 510- Water Fund $37,003,000 Water and Sewer Fees $9,210,000 515- Sewer Fund $6,230,000 Grants $5,405,000 200- Motor Fuel Tax Fund $3,930,000 TIF $2,672,361 187- Library Fund $1,155,000 Other $9,630,000 505 - Parking Fund $775,000 TOTAL $90,518,361 215- CDBG Fund $600,000 Other $3,197,361 TOTAL $90,518,361 Budget discussions for the upcoming year begin in October. The City of Evanston encourages residents to check their ward calendar for budget discussions and provide feedback to the City. 2027 Proposed Budget - Calendar April - October 2026: Staff work with departments to draft FY2027 budget. April 2026: Preliminary meeting with Finance and Budget Committee May 2026: Staff meet with elected officials to discuss FY 2027 budget. June/July 2026: Fund Balance review with Finance and Budget Committee August 2026: Midyear Budget review with Finance and Budget Committee September 2026: Staff meet with elected officials to discuss FY 2027 budget. Tues, October 6th: 2027 Proposed Budget available on City Website Wed, October 7th: Budget Discussion with Finance and Budget Committee Mon, October 12th: Budget Discussion at City Council Mon, October 26th: Budget Public Hearing at City Council October - November: Budget Ward Meetings Mon, November 2nd: Truth in Taxation Hearing at City Council Mon, November 9th: Budget Discussion & Introduction of Tax Levy Ordinances Mon, November 23rd: Target Adoption of 2027 Budget by City Council Late December: Tax Levy Filing Deadline City Council Meetings and Documents can be found at: https://www.citvofevanston.org/government/city council/agendas minutes/index.php?event=147 City or Evanston The Popular Annual Financial Report (PAFR) provides a simplified and accessible overview of the financial activities and health of the City of Evanston for the fiscal year ended December 31, 2025. It highlights key financial information, major projects, and essential services that impact the community. The PAFR aims to enhance transparency and foster greater understanding of the City's financial operations among residents. Contact Information City Manager's Office: Address: 909 Davis Street, Evanston, IL 60201 Phone: (847) 448-4311 Email: citymanagersoffice@cityofevanston.org www.citvofevanston.orj�/ 9 @CitvofEvanston Uftbbe @CityofEvanston