Department of Finance
city of chicago
August 18,2016
Honorable Susana A. Mendoza City Clerk
121 North LaSalle Street, Room 107 Chicago, Illinois 60602
Dear City Clerk Mendoza:
I am submitting to you the Comprehensive Annual Financial Report (CAFR) and the Supplement thereto for the year ended December 31, 2015. These reports are accurate in all material respects and are prepared in a manner designed to present fairly the financial position and results of operations of the various funds.
Sincerely,
Erin Keane City Comptroller
Enclosure
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121 NORTH LASALLE STKEET, SUITE 700, CHICAGO, ILLINOIS 60602
CITY OF CHICAGO
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2015
Rahm Emanuel, Mayor
Carole L. Brown, Chief Financial Officer Erin Keane, City Comptroller
Prepared by the Department of Finance
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OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL
MAYOR
June 30,2016
Dear Chicagoans:
Thank you for your interest in the City of Chicago's Comprehensive Annual Financial Report (CAFR) for the 2015 fiscal year.
In 2015, Chicago continued to make progress on addressing the City's financial legacy liabilities. We reduced our structural deficit, continued the process of ending unsustainable borrowing practices, and instituted funding to stabilize two of the City's four pension funds, while still making investments to help Chicago's children, families and neighborhoods thrive. This progress will continue in 2016 and beyond as the City works with labor unions to fund and stabilize the remaining two pension funds.
While we have made substantial progress, more work remains. By continuing to follow a deliberate reform and invest strategy, we will restore financial stability for Chicago in a way that ensures every resident has access to quality City services and every neighborhood can participate in the economic growth of our city.
Mayor
Sincerely,
CITY OF CHICAGO THE CITY COUNCIL RAHM EMANUEL, Mayor
1st Ward JOE MORENO
2nd Ward BRIAN HOPKINS
3rd Ward PAT DOWELL
4th Ward WILLIAM D. BURNS
5th Ward LESLIE A. HAIRSTON
6th Ward RODERICK T. SAWYER
7th Ward GREGORY MITCHELL
8th Ward MICHELLE A. HARRIS
9th Ward ANTHONY BEALE
10th Ward SUSAN SADLOWSKI-GARZA
11th Ward PATRICK D. THOMPSON
12th Ward GEORGE A. CARDENAS
13th Ward MARTY QUINN
14th Ward EDWARD M. BURKE
15th Ward RAYMOND A. LOPEZ
16th Ward TONI L. FOULKES
17th Ward DAVID MOORE
18th Ward DERRICK G. CURTIS
19th Ward MATTHEW J. O'SHEA
20th Ward WILLIE B. COCHRAN
21 st Ward HOWARD BROOKINS, JR.
22nd Ward RICARDO MUNOZ
23rd Ward MICHAEL R. ZALEWSKI
24th Ward MICHAEL W. SCOTT, JR.
25th Ward DANIEL S. SOLIS
26th Ward ROBERTO MALDONADO
27th Ward WALTER BURNETT, JR.
28th Ward JASON C. ERVIN
29th Ward CHRIS TALIAFERRO
30th Ward ARIEL E. REBOYRAS
31st Ward MILLY SANTIAGO
32nd Ward SCOTT WAGUESPACK
33rd Ward DEBORAH MELL
34th Ward CARRIE M. AUSTIN
35th Ward CARLOS RAMIREZ-ROSA
36th Ward GILBERT VILLEGAS
37th Ward EMMA MITTS
38th Ward NICHOLAS SPOSATO
39th Ward MARGARET LAURINO
40th Ward PATRICK J. O'CONNOR
41st Ward ANTHONY NAPOLITANO
42nd Ward BRENDAN REILLY
43rd Ward MICHELE SMITH
44th Ward THOMAS M. TUNNEY
45th Ward JOHN ARENA
46th Ward JAMES CAPPLEMAN
47th Ward AMEYA PAWAR
48th Ward HARRY OSTERMAN
49th Ward JOSEPH A. MOORE
50th Ward DEBRA L SILVERSTEIN
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2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CHICAGO
Table of Contents
PART I - INTRODUCTORY SECTION
Letter of Transmittal |910|Certificate of Achievement for Excellence in Financial Reporting 12
Organization Chart 13
PART II - FINANCIAL SECTION
Independent Auditors' Report 15
Management's Discussion and Analysis 17
Basic Financial Statements
Exhibit 1 Statement of Net Position 31
Exhibit 2 Statement of Activities 32
Exhibit 3 Balance Sheet, Governmental Funds 34
Exhibit 4 Statement of Revenues, Expenditures and Changes in Fund Balances,
Governmental Funds 36
Exhibit 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 40
Exhibit 6 Statement of Revenues and Expenditures - Budget and
Actual, General Fund (Budgetary Basis) 41
Exhibit 7 Statement of Net Position, Proprietary Funds 42
Exhibit 8 Statement of Revenues, Expenses and Changes in Net Position, Proprietary Funds 44
Exhibit 9 Statement of Cash Flows, Proprietary Funds 45
Exhibit 10 Statement of Fiduciary Net Position, Fiduciary Funds 47
Exhibit 11 Statement of Changes in Plan Net Position, Fiduciary Funds - Pension Trust Funds 48
Notes to Basic Financial Statements 49
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios 101
Schedule of Contributions, Last Ten Years 105
Schedule of Other Posternployment Benefits Funding Progress 108
Combining and Individual Fund Statements
General Fund
Schedule A-1 Schedule of Revenues - Budget and Actual (Budgetary Basis) 110
Nonmajor Governmental Funds
Schedule B-1 Combining Balance Sheet 114
Schedule B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 115
Nonmajor Special Revenue Funds
Schedule C-1 Combining Balance Sheet 118
Schedule C-2 Combining Statement of Revenues, Expenditures and
Changes in Fund Balance (Deficit) 120
Schedule C-3 Combining Schedule of Revenues - Budget and Actual (Budgetary Basis) 122
Schedule C-4 Combining Schedule of Expenditures and Encumbrances - Budget and Actual
(Budgetary Basis) 124
Nonmajor Capital Projects Funds
Schedule D-1 Combining Balance Sheet 127
Schedule D-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 128
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Combining and Individual Fund Statements - Concluded
Fiduciary Funds
Schedule E-1 Agency Funds, Combining Statement of Changes in Assets and Liabilities 130
Schedule E-2 Pension Trust Funds, Combining Statement of Plan Net Position 132
Schedule E-3 Pension Trust Funds, Combining Statement of Changes in Plan Net Position 133
PART III - STATISTICAL SECTION (Unaudited)
Table 1 Net Position by Component, Last Ten Years 136
Table 2 Changes in Net Position - Accrual Basis of Accounting, Last Ten Years 138
Table 3 General Governmental Revenues by Source, Last Ten Years 144
Table 4 General Governmental Expenditures by Function, Last Ten Years 146
Table 4A Changes in Fund Balances, Governmental Funds, Last Ten Years 148
Table 5 Fund Balances, Governmental Funds, Last Ten Years 150
Table 6 General Fund, Schedule of Revenues, Expenditures and Changes in Fund Balances,
Five Years Ended December 31, 2015 152
Table 7 Special Revenue Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2015 153
Table 8 Debt Service Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2015 154
Table 9 Capital Projects Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2015 155
Table 10 Property Tax Levies by Fund, Five Years Ended December 31, 2015 156
Table 11 Property Levies, Collections and Estimated
Allowance for Uncollectible Taxes, Last Ten Years 158
Table 12 Top Ten Estimated Equalized Assessed Valuation, Current Year and Nine Years Ago 159
Table 13 Assessed and Estimated Fair Market Value of All Taxable Property, Last Ten Years 160
Table 14 Property Tax Rates-Direct and Overlapping Governments, Per $100 of Equalized
Assessed Valuation, Last Ten Years 162
Table 15 Property Tax Rates-City of Chicago, Per $100 of Equalized
Assessed Valuation, Last Ten Years 162
Table 16 Ratio of General Net Bonded Debt to Equalized Assessed Value and
Net Bonded Debt per Capita, Last Ten Years 164
Table 17 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total
Governmental Expenditures, Last Ten Years 166
Table 18 Computation of Direct and Overlapping Bonded Debt 167
Table 19 Debt Statistics, Last Ten Years 168
Table 20 Revenue Bond Coverage, Last Ten Years 170
Table 21 Ratio of Outstanding Debt by Type, Last Ten Years 172
Table 22 Debt Service Requirements for General Long-term Debt 175
Table 23 Debt Service Requirements for General Obligation Debt 176
Table 24 Debt Service Requirements for Proprietary Funds 178
Table 25 Long-term Debt 180
Table 26 Population and Income Statistics, Last Ten Years 184
Table 27 Principal Employers (Non-government) Current Year and Nine Years Ago 185
Table 28 Full Time Equivalent City of Chicago Employees by Function, Last Ten Years 186
Table 29 Operating Indicators by Function/Department, Last Ten Years 187
Table 30 Capital Assets Statistics by Function, Last Ten Years 187
Table 31 Interest Rate Swap Counterparty Entities 188
Table 32 • Bank Facilities 189
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PART I INTRODUCTORY SECTION
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Department of Finance city of chicago
June 30, 2016
To the Honorable Mayor Rahm Emanuel, Members of the City Council, and Citizens of the City of Chicago:
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Chicago for the fiscal year that ended December 31, 2015. State law requires that all governmental units publish, within six months of the close of each fiscal year, financial statements presented in conformity with generally accepted accounting principles (GAAP) arid audited by a licensed public accountant.
Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with management. The purpose of the CAFR is to provide complete and accurate financial information which complies with the reporting requirements of the Municipal Code of Chicago (Code). The City's financial management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP.
The internal control structure is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management.
The Code also requires that the City's basic financial statements are audited by independent certified public accountants selected by the Committee on Finance of the City Council. This requirement has been met, and the unmodified audit opinion rendered by Deloitte & Touche LLP is included in the financial section of this report. The audit was conducted as a subcontractor arrangement between Deloitte & Touche LLP and a consortium of Chicago-based minority- and women-owned certified public accounting firms.
In addition to meeting the requirements set forth in the Code, an additional audit (Single Audit Act Amendment of 1996) designed to meet the requirements of the federal Office of Management and Budget's (OMB) Uniform Guidance, a government-wide framework for grants management, is performed annually.
GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of a Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.
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Profile of the Government. The City of Chicago, incorporated in 1837, currently occupies a land area of approximately 228 square miles and, according to the 2010 census, serves a population of greater than 2.6 million. The City is a "home rule" unit of local government under Illinois law and is governed by an elected mayor and city council. The Mayor, the Chief Executive Officer of the City, is elected by general election for a four-year term. The City Council, the City's legislative body consists of 50 members, each representing one of the City's 50 wards. The members of the City Council are elected through popular vote by ward for four-year terms.
The City provides public safety, street maintenance and sanitation, transportation infrastructure, water, sewer, health, cultural, aviation and human services. City employees are covered by one of four pension plans that are responsible for providing certain pension benefits and that receive funding from the City. These four plans include the Municipal Employees' Annuity and Benefit Fund, Laborers' and Retirement Board Employees' Annuity and Benefit Fund, Policemen's Annuity and Benefit Fund, and Firemen's Annuity and Benefit Fund. These component units are included in the City's reporting entity. Additional services are provided to residents by the Chicago Public Schools, Chicago Park District, Chicago Transit Authority, City Colleges of Chicago and the Chicago Housing Authority. However, these component units are not included in the City's reporting entity.
Annual budgets are adopted for all of the City's funds, including the general fund and certain special revenue and enterprise funds. On or before October 15, the Mayor submits a proposed budget of expenditures and the means of financing them to the City Council for the upcoming fiscal year, which runs the calendar year. The City Council is required to hold at least one public hearing regarding the proposed budget, and the budget recommendation must be made available for public inspection at least ten days prior to the passage of the annual appropriation ordinance, which must be enacted no later than December 31. Additional information on the budgetary process can be found in Note 3 in the notes to financial statements.
Local Economy. Chicago continues to enjoy one of the most diverse economies in the nation, with no single sector employing more than 13 percent of the City's workforce. This diversity provides fiscal stability from mature industries in business and financial services, manufacturing, transportation and warehousing, education and healthcare, and enables the City to promote the growth of emerging industries in technology, tourism, biotech, and life sciences. More than 400 major corporate headquarters (with at least 1,000 employees) are in the Chicago metropolitan area, including 36 in the Fortune 500 and 29 S&P 500 companies. In 2015, more than 700 companies expanded in Chicago, leading to it being named the "Top Metro" in the United States for corporate investment by Site Selection magazine for the second year in a row.
Long-standing components of the local economy, such as derivatives trading, remain strong. Chicago accounts for 18 percent of the world's global derivatives trading market; double that of New York (9 percent) and nearly equal to all of the exchanges in Europe combined (19 percent). Meanwhile, new sectors continuously emerge with a record high amount of venture capital - $1.7 billion - invested in Chicago startups in 2015 and $8.2 billion in acquisitions and IPOs. Chicago has long been a center for international business and is currently home to over 1,800 foreign-based companies in the metropolitan area with over $100 billion in foreign direct investment. Chicago-based companies also have a strong international presence, with over 8,000 locations across more than 170 countries or territories. Throughout 2015, monthly employment grew and unemployment declined in Chicago, as business expansions across Chicago led to approximately 48,000 new and retained jobs.
In addition, Chicago continues to be a destination for both business and leisure travelers, drawn by the City's numerous cultural and recreational attractions, professional sports teams, festivals, museums, parks, restaurants and more. Tourism, business and convention travel to Chicago reached record levels in 2015. In 2015, domestic travel to Chicago passed 50 million visitors for the first time, which is a 4.6 percent increase over 2014. Chicago's tourism industry has added an estimated 3,800 jobs in 2015 for a total of an estimated 139,800 jobs supported by the industry. Tourism continues to be a significant part of the local economy, helping to strengthen small businesses and provide jobs.
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Financial Planning and Policies. Each year, the City of Chicago completes an Annual Financial Analysis based on the critical understanding that to protect the health and safety of all Chicagoans, strengthen communities and neighborhoods, maintain infrastructure and public spaces, and foster a vibrant local economy, it must take an informed and long-term approach to financial planning. The Annual Financial Analysis, which is available on the City's website, provides a review of the City's revenues and expenditures over the past 10 years, a forecast of the City's finances for the next three years, and analyses of its reserves, pensions, debt obligations, and capital improvement program.
The City bases its annual budget on an assessment of the available resources for that year and an understanding of the City's service priorities, adopting a balanced budget each year in accordance with the Illinois Municipal Code. As part of the annual budget process, the City evaluates each department's direct and indirect costs in order to accurately assess expenses across City government and strives to maintain a diversified revenue system that is responsive to the changing economy and designed to protect the City from short-term fluctuations in any individual revenue source. The City's financial policies are intended to secure the City's fiscal integrity and health, encourage equitable allocation of costs and resources, and identify potential financial risks and options to mitigate them, maximize economic efficiency, and allow sufficient flexibility to consider new fiscal and budgetary strategies.
2015 Budget and Major Initiatives. In 2015, the City continued to build on the structural reforms and efficiencies put into place in previous budgets, and made significant investments in early childhood education, afterschool programs, public safety, pothole and street repair, and other vital neighborhood services. For the first year, the City utilized "zero-based budgeting" to identify non-personnel savings across departments. "Zero-based budgeting" helped City departments to reduce expenses in areas such as outside professional services, transportation costs, and materials and supplies. Along with steps to reduce the deficit and eliminate waste, the City invested in important city services. In 2015, the City invested in early childhood education, ensuring that all four-year-olds from low-income families have access to high-quality pre-kindergarten programs free of charge. The City also continued to expand afterschool and summer job programs for Chicago's youth. With additional investments in afterschool programs in 2015, nearly 17,000 youth were served with afterschool programming, which is a 30 percent increase since 2011. A similar investment in summer jobs for youth provided 24,000 job opportunities to youth, which is a 70 percent increase from 2011. The City provided funding to allow year-round pothole patching and street repairs, rather than seasonal repairs. On top of investments in ongoing street repair, the City added resources to rodent abatement, forestry work, and graffiti removal to improve service delivery and to enable the City to plant 25 percent more trees in 2015 over previous years. Finally, the 2015 budget made key investments in public safety, including doubling funding for the Chicago Police Department's community engagement division and doubling the number of police officers on bikes in neighborhoods throughout Chicago. The City also deposited $5 million into long-term reserves.
Additionally, in 2015, the City presented a strategy for phasing out unsustainable financial practices, and ending the use of financing structures and techniques that expose taxpayers to undue risk. A key piece of this strategy was executed in 2015 and completed in 2016. In 2015 the City converted the variable-rate debt and terminated the corresponding swaps for general obligation, sales tax, wastewater, and Near North TIF bonds. In the second quarter of 2016, the City completely eliminated variable-rate debt from the City's portfolio with the conversion of water debt to fixed-rate and the termination of the corresponding swaps. This financing technique has now been fully replaced with stable, fixed rate bonds payable over the next 20 to 40 years.
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Awards and Acknowledgments. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chicago for its CAFR for fiscal year 2014. This was the twenty-second consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized CAFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe our current CAFR continues to meet the GFOA Certificate of Achievement program's requirements, and it has been submitted for consideration for this year's award.
This report could not have been prepared without the dedication and effective help of the staff of the Department of Finance. We wish to express our appreciation to those who contributed to the preparation of this report.
Respectfully submitted,
Carole L. Brown Chief Financial Officer
Erin Keane City Comptroller
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Government Finance Officers Association
Certificate of
Achievement for Excellence in Financial Reporting
Presented to
City of Chicago Illinois
For its Comprehensive Annual Financial Report for the Fiscal Year Ended
December 31,2014
Executive Director/CEO
CITY OF CHICAGO ORGANIZATION CHART AS OF 12/31/2015
Citizens
MAYOR
Cl cou TY NCIL
COUNCIL COMMITTEES
CITY TREASURER
Department of Administrative Hearings
Department Of Business Affairs and Consumer Protection
Board
of Ethics
Department of Public Health
Office of Inspector General
Department of
Procurement Services
Commission on Animal Care and Control
Department of Planning
and Development
Department of Family and
Support Services
Department of Law
Chicago Public Library
Department of
Aviation
Department of Cultural Affairs and Special Events
Department of
Finance
Department of Human Resources
License Appeal Commission
Department of Streets and Sanitation
Office of Budget and Management
Board of Election Commissioners
Fire Department
Department of Innovation and Technology
Mayor's Office
for People with Disabilities
Department of
Transportation
Department of
Buildings
Office of Emergency Management and Communications
Department of Fleet and Facility Management
Independent Police Review Authority
Department of Police
Department of
Water Management
Police Board
PART II
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT, MANAGEMENT'S DISCUSSION AND ANALYSIS
AND
THE BASIC FINANCIAL STATEMENTS
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Deloitte & Touche LLP
111 South Wacker Drive Chicago, IL 60606-4301 USA
Deloitte
Tel:+1 312 486 1000 Fax: +1 312 486 1486 www.deloitte.com
INDEPENDENT AUDITORS' REPORT
To the Honorable Rahm Emanuel, Mayor And Members of the City Council City of Chicago, Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois (the "City"), as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the City's Pension Plans (the "Plans") which, in aggregate, represent substantially all the assets and revenues of the fiduciary funds, included in the aggregate remaining fund information. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Plans, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois, as of December 31, 2015, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Notes 1 and 17 to the financial statements, beginning net position was restated due to the City's adoption of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27; and, ending net position reflects changes in certain benefits and actuarial assumptions (Note 11). Our opinion is not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedule of Changes in the Net Pension Liability and Related Ratios, Schedule of Contributions, and Schedule of Other Postemployment Benefits Funding Progress, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Combining Fund Statements, Individual Fund Statements, introductory section and statistical section are presented for the purposes of additional analysis and are not a required part of the basic financial statements.
The Combining and Individual Fund Statements 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. Such 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 by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the reports of the other auditors, the Combining and Individual Fund Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
June 30, 2016
The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
Management's Discussion and Analysis
As management of the City of Chicago, Illinois (City) we offer readers of the City's Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2015. We encourage the readers to consider the information presented here in conjunction with information that we have furnished in our letter of transmittal, contained within this report.
2015 Financial Highlights
Liabilities and Deferred Inflows of the City, in the government-wide financial statements, exceeded its assets and deferred outflows at the close of the most recent fiscal year by $23,831.4 million (net deficit). The net deficit is composed of $2,600.1 million in net investment in capital assets and $2,563.0 million in net position restricted for specific purposes offset by an unrestricted deficit of $28,994.5 million. The net deficit increased in 2015 by $17,295.1 million primarily as a result of an increase in the pension liability due to the new financial reporting requirements of GASB Statement No.68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27 ("GASB 68") (see below).
The City's total assets increased by $1,146.6 million. The increase primarily relates to a $1,012.0 million increase in capital assets as a result of the City's capital improvement program.
Revenues and Other Financing Sources (Uses), in the fund financial statements, available for general governmental operations during 2015 were $7,549.7 million, an increase of $780.3 million (11.5 percent) from 2014, primarily due to drawing from the Line of Credit and issuance of General Obligation Bonds.
The General Fund ended 2015 with a total Fund Balance of $215.2 million, of which'$93.0 million was Unassigned. Total Fund Balance increased from 2014 primarily because Revenues and Other Financing Sources were greater than Expenditures and Other Financing Uses by $74.6'million.
The City's General Obligation Bonds and notes outstanding increased by $1,028.9 million during the current fiscal year. The proceeds from the issuance of General Obligation Bonds were used primarily to repay indebtedness incurred by the City under its Short-Term borrowing program.
The General Fund expenditures on a budgetary basis were $105.6 million less than budgeted as a result of favorable variances in general government expenditures, offset by unfavorable variances. in Streets and Sanitation primarily as a result of higher than expected contractual related expenses due to certain winter storm events.
GASB No. 68 established new financial reporting requirements for most governments that provide their employees with pension benefits through pension plans. GASB 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. The Statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information (see RSI and Notes 11 and 17). Beginning Net Position was restated as a result of implementation of this standard (see Note17). The net pension liability at December 31, 2015 is $33,846.2 million.
Overview of the Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which include the following components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. These components are described below:
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, using accounting methods similar to those used by private-sector companies. The statements provide both short-term and long-term information about the City's financial
17
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
position, which assists in assessing the City's economic condition at the end of the fiscal year. These financial statements are prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This basically means such statements follow methods that are similar to those used by most businesses. They take into account all revenues and expenses connected with the fiscal year even if cash involved has not been received or paid.
The government-wide financial statements include two statements:
The statement of net position presents information on all of the City's assets, deferred outflows, liabilities, and deferred inflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating, respectively. To assess the overall health of the City, the reader should consider additional non-financial factors such as changes in the City's property tax base and the condition of the City's infrastructure.
The statement of activities presents information showing how the government's net position changed during each fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (for example, uncollected taxes, and earned but unused vacation). This statement also presents a comparison between direct expenses and program revenues for each function of the City.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets and sanitation, transportation, health, and cultural and recreation. The business-type activities of the City include water, sewer, tollway and airport services.
The government-wide financial statements present information about the City as a primary government, which includes the Chicago Public Library. The government-wide financial statements can be found immediately following this management's discussion and analysis.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of a fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
The City maintains 19 individual governmental funds. Information for the six funds that qualify as major is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The six major governmental funds are as follows: the General Fund, the Federal, State and Local Grants Fund, the Special Taxing Areas Fund, Service Concession and Reserve Fund, the Bond, Note Redemption and Interest Fund, and the Community Development and Improvement Projects Fund. Data from the other governmental funds are combined into a single, aggregated presentation.
18
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
The City adopts an annual appropriation budget for its general and certain special revenue funds on a non-GAAP budgetary basis. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found immediately following the government-wide statements.
Proprietary funds. These funds are used to show activities that operate more like those of commercial enterprises. Because these funds charge user fees for services provided to outside customers including local governments, they are known as enterprise funds. Proprietary funds, like government-wide statements, use the accrual basis of accounting and provide both long- and short-term financial information. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements. The City uses five enterprise funds to account for its water, sewer, Skyway, and two airports operations.
Proprietary funds provide the same type of information as the government-wide financial statements, but provide more detail. The proprietary fund financial statements provide separate information for the Water Fund, Sewer Fund, Chicago Skyway Fund, Chicago-O'Hare International Airport Fund and the Chicago Midway International Airport Fund. All the proprietary funds are considered to be major funds of the City. The basic proprietary fund financial statements can be found immediately following the governmental fund financial statements.
Fiduciary funds. Fiduciary funds are used primarily to account for resources held for the benefit of parties outside the primary government. The City is the trustee, or fiduciary, for its employees' pension plans. It is also responsible for other assets that, because of a trust arrangement can be used only for the trust beneficiaries. The City also uses fiduciary funds to account for transactions for assets held by the City as agent for various entities. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. All of the City's fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund basic financial statements can be found immediately following the proprietary fund financial statements.
Notes to the basic financial statements. The notes provide additional information that is essential for a full understanding of data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found immediately following the fiduciary fund basic financial statements.
Additional Information. The combining statements, which include nonmajor funds, for governmental funds and trust and agency funds are presented immediately following the notes to the basic financial statements.
Financial Analysis of the City as a whole
Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, liabilities and deferred inflows exceeded assets by $23,831.4 million at December 31, 2015. Of this amount, $2,600.1 million represents the City's investment in capital assets (land, buildings, roads, bridges, etc.) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities and deferred inflows.
An additional portion of the City's net position, $2,563.0 million, represents resources that are subject to external restrictions on how they may be used.
19
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
City of Chicago, Illinois Summary Statement of Net Position
(in millions of dollars)
Governmental Business-type
Activities Activities
2015 2014 2015 2014
Current and other assets $ 5,384.8 $ 5,254.5 $ 4,738 4 $ 4,734.1
Capital assets 8,508.2 8,281.2 14,607.5 13,822.5
TotalAssets 13,893.0 13,535.7 19,345.9 18,556.6
Deferred outflows 7,187.7 281.5 1,701.5 320.9
Total 21,080.7 13,8172 21,047.4 18,877.5
Long-term liabilities outstanding 41,404.0 19,516.8 17,914.4 13,602.6
Other liabilities 1,969.4 1,767.4 1,274.8 1,122.7
Total Liabilities 43,373.4 21,284.2 19,189.2 14,725.3
Deferred Inflows 1,743.1 1,576.3 1,653.8 1,645.2
Net Position:
Net investment in capital assets (292.4) 28.7 2,892.5 2,713.8
Restricted 1,519.9 1,492.0 1,043.1 979.0
Unrestricted (25,263.3) (10,564.0) (3,731.2) (1,185.8)
Total net (deficit) position $ (24,035.8) $ (9,043.3) $ 204.4 $ 2,507.0
2015
10,123.2 23,115.7
33,238.9 8,889.2
42,128.1
59,318.4 3,244.2
62,562.6 3,396.9
2,600.1 2,563.0 (28,994.5)
2014
9,988.6 22,103.7
32,092.3 602.4
32,694.7
33,119.4 2,890.1
36,009.5 3,221.5
2,742.5 2,471.0 (11,749.8)
$ (23,831.4) $ (6,536.3)
Governmental Activities. Net position of the City's governmental activities decreased $14,992.5 million to a deficit of $24,035.8 million primarily as a result of an increase in the pension liability due to the new reporting requirements of GASB 68. A significant portion of net position is either restricted as to the purpose they can be used for or they are classified as net investment in capital assets (buildings, roads, bridges, etc.). Consequently, unrestricted net position showed a $25,263.3 million deficit at the end of this year. This deficit does not mean that the City does not have the resources available to pay its bills next year. Rather, it is the result of having long-term commitments that are greater than currently available resources. Specifically, the City did not include in past annual budgets the full amounts needed to finance future liabilities arising from personnel, property, pollution and casualty claims ($850.6 million) and Municipal employees, Laborers', Policemen's and Firemen's net pension obligation and other post-employment benefits ($29,912.2 million). The City will include these amounts in future years' budgets as they come due. In addition, the deferred inflow balance of $1,555.2 million from concession service agreements will be amortized into income over the life of such agreements.
Revenues for all governmental activities in 2015 were $6,394.0 million, an increase of $664.9 million from 2014. Over half of the City's revenues were derived from taxes which increased by $562.6 million (17.6 percent). Total tax revenue included an increase in property taxes received of $252.6 million (27.3 percent).
Expenses for governmental activities in 2015 were $11,254.6 million, an increase of $3,904.5 million (53.1 percent) over 2014. The amount that taxpayers paid for these governmental activities through City taxes was $3,754.2 million. Some of the cost was paid by those who directly benefited from the programs ($814.8 million), or by other governments and organizations that subsidized certain programs with grants and contributions ($745.8 million).
The City paid $1,078.6 million for the "public benefit" portion with other revenues such as state aid, interest and miscellaneous income.
Although total net position of business-types activities was $204.4 million, these resources cannot be used to make up for the deficit in net position in governmental activities. The City generally can only use this net position to finance the continuing operations of the water, sewer, Skyway, and airports activities.
20
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
City of Chicago, Illinois Changes in Net Position Years Ended December 31, (in millions of dollars)
Governmental
Activities
2015 2014
Revenues: Program Revenues:
Licenses, Permits, Fines and
Charges for Services $ 814.8 $ 819.2
Operating Grants and Contributions 496.7 470.7
Capital Grants and Contributions 249.1 249.9
General Revenues:
Property Taxes 1,179.4 926.8
Other Taxes 2,574.8 2,264.8
Grants and Contributions not
Restricted to Specific Programs 815.2 740.9
Other 263.4 256.8
Transfer In (Out) 06 -
Total Revenues 6,394.0 5,729.1
Expenses:
General Government 6,238.0 2,857.7
Public Safety 3,192.2 2,913.5
Streets and Sanitation 253.4 275.8
Transportation 471.7 475.8
Health 119.2 125.1
Cultural and Recreational 118.8 121.5
Interest on Long-term Debt 861.3 580.7
Water
Sewer
Midway International Airport
Chicago-O'Hare International Airport
Chicago Skyway
Total Expenses 11,254.6 7,350.1
Change in Net Position (4,860.6) (1,621.0)
Net (Deficit) Position,
Beginning of Year, as Restated (Note 17) (19,175.2) (7,422.3)
Net (Deficit) Position, End of Year $(24,035.8) $ (9,043.3)
2015
Business-type Activities
2014
85.9
$ 2,400.4 $ 2,244.1
95.6
85.3
2,425 0
67.4 (0-6)
455.4 225.6 248.2 1,029.7 10.3
1,969.2 455 8
2,553.1
900 3 505.0 3157 1,380.5 8.7
761 5
3,1102 (557.1)
2,051.2
$ 204 4 S 2,507.0
2014
Total
$ 3,063.3 470.7 345.5
926.8 2,264.8
740.9 342.1
8,154.1
2015
3,215.2 496.7 335.0
1,179.4 2,574.8
815.2 330.8
2,857.7 2,913.5 275.8 475.8 125.1 121.5 580.7 455.4 225.6 248.2 1,029.7 10.3
9,319.3 (1,165.2)
8,947.1
6,238.0 3,192.2 253.4 471.7 119.2 118.8 861.3 900.3 505.0 315.7 1,380.5 8.7
14,364 8 (5,417 7)
(18,413.7)
(5,371.1)
$(23,831 4) $. (6,536 3)
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
Expenses and Program Revenues - Governmental Activities (in millions of dollars)
400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 6,000 6,400
General Government Public Safety Streets and Sanitation Transportation Health
Cultural and Recreational Interest on Long-term Debt
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Revenues by Source - Governmental Activities
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
Business-type Activities. Total Revenues of the City's business-type activities increased by $128.1 million in 2015 mostly from an increase in charges for services and rental income, offset by a decrease in other general revenues and capital grant funding.
The Water Fund's total operating revenues increased by $76.8 million (11.1%) from 2014 due to a 15% increase in water rates, offset by the conversion of 23,820 accounts from nonmetered to metered. Operating expenses before depreciation and amortization for the year ended 2015 increased by $439.1 million (146.9%) from the year ended 2014 mainly due to increases in pension costs resulting from the implementation of GASB 68.
The Sewer Fund's total operating revenues increased in 2015 by $53.6 million (16.7%) primarily due to an increase in sewer rates. Operating expenses before depreciation and amortization for 2015 increased $191.4 million (160.5%) from the year ended 2014 primarily due to an increase in pension expense related to the implementation of GASB 68.
Chicago Midway International Airport's total operating revenues for 2015 increased by $5.9 million (3.4%) from 2014 primarily due to higher rents and other concession revenue. Operating expenses before depreciation and amortization increased by $54.3 million compared to 2014, primarily due to an increase in pension expense related to the implementation of GASB 68.
Chicago O'Hare International Airport's total operating revenues for 2015 increased by $.7 million (0.0%) compared to 2014. Operating expenses before depreciation and amortization increased by $310.7 million (62.8%) compared to 2014 primarily due to an increase in pension expense related to the implementation of GASB 68.
The Chicago Skyway was leased for 99 years to a private company. The agreement granted the company the right to operate the Skyway and to collect toll revenue during the term of the agreement. The City received an upfront payment of $1.83 billion of which $446.3 million was used to advance refund all of the outstanding Skyway bonds. The upfront payment is being amortized into nonoperating revenue over the period of the lease ($18.5 million annually).
23
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
Expenses and Program Revenues - Business-type Activities (in millions of dollars)
100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400
Water
Sewer
Chicago Midway International Airport Chicago-O'Hare International Airport Chicago Skyway
24
Revenues by Source - Business-type Activities
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At December 31, 2015, the City's governmental funds reported combined ending fund balances of $982.7 million, an increase of $159.4 million in comparison with the prior year. Of this total amount $677.8 million was committed to specific expenditures, $98.4 million was assigned to anticipated uses, a deficit of $1,696.0 million was unassigned, $1,878.7 million was restricted in use by legislation, and $23.8 million was nonspendable.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $93.0 million with a total fund balance of $215.2 million. As a measure of the General Fund's liquidity, it may be helpful to compare both unassigned fund balance and total fund balance to total fund expenditures. Total General Fund balance represents 6.3 percent of total General Fund expenditures. The fund balance of the City's General Fund increased by approximately $74.0 million during the current fiscal year due to higher revenues and lower expenses for certain categories.
The Federal, State and Local Grants Fund has a total deficit fund balance of $216.1 million. The deficit is $8.9 million lower than 2014 primarily due to more timely reimbursement of expenditures.
The Special Taxing Areas Fund has a total fund balance of $1,275.7 million, which is all restricted to specific expenditures.
The Service Concession and Reserve Fund accounts for deferred inflows from nonbusiness type long-term concession and lease transactions and has $621.3 million committed to specific expenditures. The unassigned deficit of $1,555.3 million results from the deferred inflows from long-term asset leases.
The Bond, Note Redemption and Interest Fund has a total fund balance of $236.3 million. The fund balance in 2014 was $263.2 million lower due to reclassification of long-term debt to short term debt during 2014.
The Community Development and Improvement Projects Fund has a total fund balance of $198.4 million. This is $149.2 million lower than 2014 due to increased capital improvement efforts.
Changes in fund balance. The fund balance for the City's governmental funds increased by $159.4 million in 2015. This includes a decrease in inventory of $.7 million.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
Unrestricted net position of the Water, Sewer, Chicago Skyway, Chicago-O'Hare International Airport, and Chicago Midway International Airport Funds at the end of the year amounted to a deficit of $3,731.2 million. The unrestricted net position deficit increased by $2,545.4 million due to an increase in the unrestricted deficit in all proprietary funds primarily due to pension costs as a result of the implementation of GASB 68. Other factors concerning the finances of these five funds have already been addressed in the discussion of the City's business-type activities.
25
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
General Fund Budgetary Highlights
The City's 2015 Original General Fund Budget was $3,534.4 million. This budget reflects an increase of $244.2 million (7.4 %) over the 2014 Budget. $128.8 million of this increase is the result of a change in the way the City budgeted pension contributions to more clearly reflect the allocation of pension expenses across City funds. This change is discussed further below. On November 19, 2014 the City's 2015 General Fund Budget was approved by the City Council. The General Fund revenues on a budgetary basis were $14.2 million less than the final budget as a result of lower state income tax and utility tax revenues which were offset by higher than expected revenue from, transaction, recreation, and transportation taxes. Expenditures were $91.4 million less than budgeted as a result of favorable variances in general government expenditures. Additional information on the City's budget can be found in Note 3 under Stewardship, Compliance and Accountability within this report.
As discussed as part of the 2015 appropriation above the City changed how it budgets its pension fund contributions. This change impacts how state income tax revenue is reflected in the 2015 financial statements. Historically, the City's pension fund contributions were paid from property taxes and personal property replacement tax (PPRT) revenues, and as a result no pension fund expenses were reflected in the general fund. Instead PPRT revenues were diverted from the general fund to the pension funds. In addition, PPRT revenues in one year were used to make the pension contributions budgeted in the prior year. As a result, the state income tax revenues recorded in the general fund appear lower than the revenue actually received as a portion of the revenue was diverted to pay 2014 pension contributions in accordance with past practice. Due to certain changes in the way that pension contributions are recorded in the 2015 financial statements and the 2015 budgetary change, this is a one-time adjustment.
Capital Asset and Debt Administration
Capital Assets. The City's capital assets for its governmental and business-type activities as of December 31, 2015 amount to $23,115.7 million (net of accumulated depreciation). These capital assets include land, buildings and system improvements, machinery and equipment, roads, highways and bridges, and property, plant and equipment.
Major capital asset events during the current fiscal year included the following:
The City continues its commitment to sustainable design in new construction projects utilizing the Leadership in Energy & Environmental Design (LEED) strategy. Completed construction in 2015 totaled $29.5 million including; Chicago Children Advocacy Center Expansion Project totaling $7.1 million and Chinatown Library totaling $18.3 million.
During 2015, the City completed $384.8 million in infrastructure projects including $270.1 million in street construction and resurfacing projects, $84.8 million in street lighting and transit projects, and $29.9 million in bridge and viaduct reconstruction. At year end, infrastructure projects still in process had expenses totaling nearly $640.5 million.
At the end of 2015, the Water Fund had $3,822.8 million invested in utility plant, net of accumulated depreciation. During 2015, the Water Fund expended $414.2 million on capital activities. This included $3.0 million for structures and improvements, $243.1 million for distribution plant, $6.0 million for equipment, and $160.3 million for construction in progress, and $1.8 million for land and land rights.
During 2015, net completed projects totaling $366.3 million were transferred from construction in progress to applicable capital accounts. The major completed projects relate to installation and replacements of water mains ($284.5 million), and meter save program ($74.5 million).
At the end of 2015, the Sewer Fund had $2,263.2 million invested in utility plant, net of accumulated depreciation. During 2015, the Sewer Fund had capital additions being depreciated of $207.2 million, and completed projects totaling $17.2 million were transferred from construction in progress to applicable facilities and structures capital accounts. The 2015 Sewer Main Replacement Program completed 25.4 miles of sewer mains and 55.1 miles of relining of existing sewer mains at a cost of $208.8 million.
26
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
At the end of 2015, Chicago-Midway International Airport had $1,169.6 million invested in net capital assets. During 2015, the Airport had additions of $44.9 million related to capital activities. This included $.4 million for land acquisition and the balance of $44.5 million for construction projects relating to terminal improvements, runway rehabilitation and parking improvements. During 2015, completed projects totaling $46.0 million were transferred from construction in progress to applicable buildings and other facilities capital accounts. These major completed projects were related to runway and taxi improvements, rental car, parking garage, and terminal security.
At the end of 2015, Chicago-O'Hare International Airport totaled $7.1 billion, invested in net capital assets. During 2015, the Airport had additions of $450.8 million related to capital activities. This included $.3 million for land acquisition and the balance of $450.5 million for terminal improvements, road and sidewalk enhancements, runway and taxiway improvements. During 2015, completed projects totaling $816.0 million were transferred from construction in progress to applicable buildings and other facilities capital accounts. These major completed projects were related to runway and taxiway improvements, road, electrical system upgrades, and parking facilities and terminal improvements.
City of Chicago, Illinois Capital Assets (net of depreciation) (in millions of dollars)
Governmental Business-type
Activities Activities Total
2015 2014 2015 2014 2015 2014
Land $ 1,393.4 $ 1,392.8 $ 1,021.2 $ 1,018.7 $ 2,414.6 $ 2,411.5
Works of Art and
Historical Collections 45.6 45.2 - - 45.6 45.2
Construction in Progress 656.0 545.5 740.4 1,256.3 1,396.4 1,801.8
Buildings and Other Improvements 1,610.7 1,630.2 12,537.0 11,227.0 14,147.7 12,857.2
Machinery and Equipment 231.8 235.3 308.9 320.5 540.7 555.8
inrrastructure 4,570.7 4,432.2 - - 4,570.7 4,432.2
Total $ 8,508.2 $8,281.2 $ 14,607.5 $ 13,822.5 $23,115.7 $22,103.7
Information on the City's capital assets can be found in Note 7 Capital Assets in this report.
Debt. At the end of the current fiscal year, the City had $8,688.8 million in General Obligation Bonds and $675.6 million in General Obligation Certificates and Other Obligations outstanding. Other outstanding long-term debt is as follows: $212.4 million in Motor Fuel Tax Revenue Bonds; $541.6 million of Sales Tax Revenue Bonds; $65.4 million in Tax Increment Financing Bonds; and $13,050.4 million in Enterprise Fund Bonds and long-term obligations. For more detail, refer to Note 10 Long-term Obligations in the Basic Financial Statements.
27
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
City of Chicago, Illinois General Obligation and Revenue Bonds (in millions of dollars)
Governmental Business-type
Activities Activities Total
2015 2014 2015 2014 2015 2014
General Obligation $ 9,364.4 $ 8,335.5 $ - $ - $ 9,364.4 $ 8,335.5
Tax Increment 65.4 74.4 - - 65.4 74.4
Revenue Bonds 754.0 743.8 13,050.4 13,071.6 13,804.4 13,815.4
Total $ 10,183.8 $9,153.7 $ 13,050.4 $13,071.6 $ 23,234.2 $ 22,225.3
During 2015, the City issued the following: General Obligation Bonds:
General Obligation Bonds, Series 2015A Tax-Exempt and 2015B Taxable ($1,088.4 billion). Enterprise Fund Revenue Bonds and Notes:
Chicago-O'Hare International Airport General Commercial Paper Notes ($75.8 million)
• Chicago-O'Hare INternational International General Airport Senior Lien Revenue and Revenue Refunding Bonds, Series 2015A (AMT), Series 2015B (Non-AMT), Series 2014C (AMT), and Series 2015D (Non-AMT) ($1,947.4 million).
Second Lien Wastewater Transmission Revenue Bonds, Series 2015 ($87.1 million).
28
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
At December 31, 2015 the City had credit ratings with each of the four major rating agencies as follows:
Standard &
Moody's Poors
General Obligation: City
Revenue Bonds:
O'Hare Airport: Senior Lien General Airport Revenue Bonds Senior Lien Passenger Facility Charge (PFC) Customer Facility Charge (CFC)
Midway Airport: First Lien Second Lien
Water: First Lien Second Lien
Wastewater: First Lien Second Lien
Sales Tax
Motor Fuel Tax
Ba1
A2 A2 Baal
A2 A3
Baal Baa2
Baa2 Baa3
Ba1
Ba1
BBB+
A A
BBB
A A-
A A-
A+ A
AA
BBB+
BBB+
A-A NR
A A-
AA+ AA
NR AA
BBB+
BBB
A+ NR NR
NR NR
NR AA
NR AA-
AA+
NR
See Subsequent Events in the footnotes for ratings changes in 2016. Economic Factors and Next Year's Budgets and Rates
Local, national, and global economies play a major role in the City's finances and economic growth. In 2015, local and national economies continued to experience moderate growth and recovery from the economic downturn. Although rising home prices and shrinking inventory slowed the housing market in 2015 and home sales were up nearly 8 percent compared to 2014, median home prices were up 6 percent over 2014. In 2015, nationwide, retail sales grew 2.3 percent over 2014, with consumer confidence showing further improvement. The average national unemployment rate decreased from 6.2 percent in 2014 to 5.3 percent in 2015, and Chicago's unemployment rate declined in 2015 as well. Tourism, business, and convention travel to Chicago remained strong in 2015, with amusement tax collections up about 29 percent and hotel tax revenues up about 9 percent from 2014. Additionally, Chicago welcomed a record number of domestic tourists in 2015 with more than 50 million visitors from around the country traveling to Chicago.
The City's 2016 General Fund budget, totaling $3,623.8 million, was approved by a 35 to 15 vote of City Council on October 28, 2015. The 2016 budget balanced a preliminary budget shortfall of $233.0 million by reforming and cutting spending, and improving revenue growth. The 2016 budget also commits an additional $5.0 million to the City's long-term reserves, following provisions of $15.0 million in 2013, $5.0 million in 2014 and $5.0 million in 2015.
29
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Chicago Department of Finance.
30
Exhibit 1
CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION December 31, 2015
(Amounts are in Thousands of Dollars)
Governmental Activities
ASSETS AND DEFERRED OUTFLOWS
Cash and Cash Equivalents $ 857,747
Investments 705,364
Cash and Investments with Escrow Agent 661,474
Receivables (Net of Allowances):
Property Tax 1,560,464
Accounts 980,045
Internal Balances (46,140)
Inventories 23,828
Restricted Assets:
Cash and Cash Equivalents 108,877
Investments 515,991
Other Assets 17,112
Capital Assets:
Land, Art, and Construction in Progress 2,094,938
Other Capital Assets, Net of Accumulated Depreciation 6,413,262
Total Capital Assets 8,508.200
Total Assets 13,892,962
Deferred Outflows 7,187,699
Total Assets and Deferred Outflows $ 21,080,661
LIABILITIES AND DEFERRED INFLOWS
Voucher Warrants Payable $ 525,004
Short-term Debt 672
Accrued Interest 270,551
Accrued and Other Liabilities 1,092,005
Unearned Revenue 81,144
Derivative Instrument Liability
Long-term Liabilities:
Due Within One Year 318,144
Due in More Than One Year 41,085,810
Total Liabilities 43,373,330
Deferred Inflows 1,743,138
Total Liabilities and Deferred Inflows 45,116^468
NET POSITION
Net Investment in Capital Assets (292,432)
Restricted for:
Capital Projects
Debt Service 244,205
Special Taxing Areas 1,275 709
Passenger Facility Charges
Contractual Use Agreement
Airport Development Fund
Customer Facility Charges
Other Purposes
Unrestricted (Deficit) (25,263,289)
Total Net Position $ (24!o35,807)
Total
1,301,893 913,742 661,474
389,719 46,140 21,500
1,639,613 1,927,057 61,875
1,761,593 12,845,900 14,607.493 19,345,921
1,701,505
1,560,464 1,369,764
45,328
1,748,490 2,443,048 78,987
3,856,531 19,259,162 23.115.693 33,238,883
8,889,204
476,663 $
245,797 235,309 193,867 123,166
366,828 17,547,645
$ 21,047,426 $ 42,128,087
1,001,667 672 516,348
1,327,314 275,011 123,166
19,189,275 1,653,790
20,843,065
684,972 58,633,455
62,562,605 3,396,928
2,892,548
220,059 25,832
155,007 166,654 338,133 91,513 45,782 (3,731,167)
65,959,533
2,600,116
220,059 270,037 1,275,709 155,007 166,654 338,133 91,513 45,782 (28,994,456)
204.361 $ (23.831.446)
See notes to basic financial statements.
Exhibit 2
CITY OF CHICAGO, ILLINOIS STATEMENT OF ACTIVITIES Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Licenses, Permits, Fines and Charges for Services
Primary Government Governmental Activities:
General Government $
Public Safety
Streets and Sanitation
Transportation
Health
Cultural and Recreational
Interest on Long-term Debt
Total Governmental Activities
6,238,028 3,192,197 253,432 471,689 119,199 118,775 861,293
11,254,613
534,325 182,670 39,602 37,522 5,839 14,850
814,808
Business-type Activities:
Water 900,346 769,408
Sewer 505,032 375,877
Chicago Midway International Airport 315,724 225,383
Chicago-O'Hare International Airport 1,380,512 1,029,788
Chicago Skyway 8,727 -
Total Business-type Activities 3,110,341 2,400,456
Total Primary Government $ 14,364,954 $ 3,215,264
See notes to basic financial statements.
32
Program Revenues
Operating Grants and Contributions
Capital Grants and Contributions
Governmental Activities
Business-type Activities
326,030 67,822
90,261 12,566
496,679
(5,377,673) (2,941,705) (213,830) (185,103) (23,099) (91,359) (861,293) (9,694,062)
(5,377,673) (2,941,705) (213,830) (185,103) (23,099) (91,359) (861,293) (9,694,062)
9,279 76,689
85,968
(130,938) (129,155) (81,062) (274,035) (8,727)
(623,917)
(130,938) (129,155) (81,062) (274,035) (8,727)
(623,917)
(10,317,979)
General Revenues Taxes:
Property Tax 1,179,395
Utility Tax 562,697
Sales Tax 346,319
Transportation Tax 384,978
Transaction Tax 466,432
Special Area Tax 444,972
Recreation Tax 227,510
Other Taxes 141,895
Grants and Contributions not Restricted to
Specific Programs 815,157
Unrestricted Investment Earnings (1,357)
Miscellaneous 264,806
Transfers 625
Total General Revenues and Transfers 4,833,429
Change in Net Position (4,860,633)
Net Position - Beginning, as restated (Note 17) . (19,175,174)
Net Position - Ending $ (24,035,807)
27,563 39,744 (625)
66,682
(557,235) 761,596
204,361
1,179,395 562,697 346,319 384,978 466,432 444,972 227,510 141,895
815,157 26,206 304,550
4,900,111 (5,417,868) (18,413,578) $ (23,831,446)
33
Exhibit 3
CITY OF CHICAGO, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015
(Amounts are in Thousands of Dollars)
General
ASSETS
Cash and Cash Equivalents $ 2,555
Investments 54,392
Cash and Investments with Escrow Agent
Receivables (Net of Allowances):
Property Tax
Accounts 225,580
Due From Other Funds 154,104
Due From Other Governments 262,522
Inventories 23,828
Restricted Cash and Cash Equivalents
Restricted Investments
Other Assets -
Total Assets $ 722,981
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 219,649
Bonds, Notes and Other Obligations Payable - Current
Accrued Interest
Due To Other Funds 167,001
Accrued and Other Liabilities 98,500
Claims Payable 13,748
Unearned Revenue 8,851
Total Liabilities 507,749"
Deferred Inflows -_
Fund Balance:
Nonspendable 23,828
Restricted
Committed
Assigned 98,377
Unassigned 93,027
Total Fund Balance 215,232
Total Liabilities, Deferred Inflows and Fund Balance $ 722,981
Special Taxing Areas
796,054 299,101
Federal, State and Local Grants
399,623 3,293 180,269
36,793
3,796 50,724 421,526
3,218
$ 1,678,340
38,286
4,075 $ 520,132
10,794 3,147
$ 156,058
261,316 7,408
52,227
350,404
72,293 497,075
1,275,709
239,199
17,617
1,275,709
(233,759) (216,142)
$ 520,132 $ 1,678,340
See notes to basic financial statements.
Service Community
Concession Bond, Note Development Other Total
and Redemption and Improvement Governmental Governmei
Reserve and Interest Projects Funds Funds
$ - $ 25,720 $ 738 $ 32,680 $ 857,747
66,182 164,236 84,660 705,364
574,924 - 86,550 661,474
491,113 - 669,728 1,560,464
2,815 893 1,675 18,506 256,558
32,161 100,817 96,033 614,108
2,659 - 36,780 723,487
23,828
105,659 - - - 108,877
515,991 - - - 515,991
- - - - 4,075
$ 624,465 $ 1,193,652 $ 267,466 $ 1,024,937 $ 6,031,973
$ $ $ 47,228 $ 44,538 $ 505,759
146,863 - 4,700 151,563
269,309 - 1,242 270,551
3,183 104,247 19,321 164,144 730,006
2,486 5,747 117,288
13,748
- - - - 81,144
3,183 520,419 69,035 220,371 1,870,059
1,555,260 436,939 - 597,386 3,179,188
23,828
236,294 198,431 150,641 1,878,692
621,282 - - 56,539 677,821
98,377
(1,555,260) -_ -__ (1,695,992)
(933,978) 236,294 198,431 207,180 982,726
$ 624,465 $ 1,193,652 $ 267,466 $ 1,024,937 $ 6,031,973
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 funds 8,508,200
Other long-term assets are not available to pay for current-period
expenditures and therefore are recorded as deferred inflows in the funds 1,623,928
Certain liabilities, including bonds payable, and deferred outflows are not due and payable
in the current period and therefore are not reported in the funds (35,150,661)
Net position of governmental activities $ (24,035,807)
35
Exhibit 4
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
General
Revenues:
Property Tax $
Utility Tax 437,780
Sales Tax (Local) 308,878
Transportation Tax 197,877
State Income Tax 336,959
State Sales Tax 356,915
Transaction Tax 390,308
Special Area Tax
Recreation Tax 227,510
Other Taxes 119,963
Federal/State Grants 1,845
Internal Service 345,426
Licenses and Permits 126,727
Fines 366,309
Investment Income 911
Charges for Services 126,109
Miscellaneous 123,118
Total Revenues 3,466,635
1,064,470 26,001
2,061,540 199,644 67,145
Expenditures: Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Cultural and Recreational
6,027
Employee Pensions
Other
Capital Outlay
1,930 6,345
Debt Service:
Principal Retirement
Interest and Other Fiscal Charges
Total Expenditures 3,433,102
Revenues (Under) Over Expenditures 33,533
Federal, State and Local Grants
763,001
763,001
335,362 93,007 43,337
242,804 12,872
(72) 45,445
772,755
(9,754)
Special Taxing Areas
353,413
3,585 5
1,699
358,702
292,198
33 77,819 386
370,436
(11,734)
Continued on following pages.
Service Concession and Reserve
11,391 21,033
Bond, Note. Redemption and Interest
476,466 22,324 37,441 11,737
12
2,308 (50,182) 69,389
Community Development
and Improvement Projects
4,593 23,974
Nonmajor Governmental Funds
393,375 102,593
175,364 119,438
76,124
21,920
37,332
20,851 2,807 21,813 25,593
Total
Governmental
Funds
869,841
562,697
346,319
384,978
456,397
356,915
466,432
353,413
227,510
141,895
764,846
382,758
129,035
387,160
(26,895)
147,927
264,806
6,216,034
371,867 2,063,897
40 119,048
6,832 2,111,709
49,401 249,078
87,714 475,482
81,791 95,049
479,581 479,581
771 6,726
327,109 52,496 425,050
474,806 - 37,070 1 513,806
819,738 - 24,160 850,243
1,294,544 327,109 1,191,723 7,389,669
32,424 (725,049) (298,542) (194,513) (1,173,635)
37
Exhibit 4 - Concluded
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Federal, , State and Local Grants
Special Taxing Areas
Other Financing Sources (Uses):
Issuance of Debt $
Issuance of Line of Credit 19,300
Premium/(Discount)
Transfers In 34,551
Transfers Out (12,760)
Total Other Financing Sources (Uses) 41,091
Net Changes in Fund Balance 74,624
Fund Balance, Beginning of Year 141,278
Change in Inventory (670)
Fund Balance, End of Year $ 215,232
28,657
(10,000)
18,657
8,903 (225,045)
(216,142) $
6,632 (46,247)
(39,615)
(51,349) 1,327,058
1,275,709
See notes to basic financial statements.
Service Concession Agreements and Reserve
Bond, Note Redemption and Interest
Community Development
and Improvement Projects
Nonmajor Governmental Funds
Total Governmental Funds
1,026,030 93,837 (23,108) 7,367 (115,911)
988,215
62,360 50,000
38,057 (1,096)
149,321
75,994
143,002 (31,970)
187,026
1,117,047 239,131 (23,108) 229,609 (228,984)
1,333,695
21,424 (955,402)
263,166 (26,872)
(149,221) 347,652
(7,487) 214,667
160,060 823,336 (670)
$ (933,978) $ 236,294 $ 198,431 $ 207,180
39
Exhibit 5
CITY OF CHICAGO, ILLINOIS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Amounts reported for governmental activities in the statement of activities are different from amounts reported for governmental funds in the statement of revenues, expenditures and changes in fund balances because:
Net change in fund balances - total governmental funds $ 160,060
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current
period 223,053
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds 406,710
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net
assets. This is the amount by which proceeds exceeded repayments (824,928)
Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as
expenditures in governmental funds (4,825,528)
Change in the net position of governmental activities $ (4,860,633)
See notes to basic financial statements.
40
Exhibit 6
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND (BUDGETARY BASIS) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Original Budget
Revenues:
Utility Tax $ 451,840
Sales Tax 308,300
Transportation Tax 188,024
Transaction Tax 326,432
Recreation Tax 205,026
Other Taxes 115,049
State Income Tax 420,019
State Sales Tax 339,624
Federal/State Grants 1,600
Internal Service 353,326
Licenses and Permits 136,915
Fines 369,500
Investment Income 2,000
Charges for Services 138,724
Miscellaneous 145,233
Transfers In/Out 32,808
Total Revenues
Expenditures: Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Debt Service:
Principal Retirement
Interest and Other Fiscal Charges
Total Expenditures
Final Budget
451,840 308,300 188,024 326,432 205,026 115,049 420,019 339,624 1,600 353,326 137,273 369,500 2,000 138,366 145,233 33,071
3,534,683
1,189,647 29,508
2,061,129 195,655 56,363
1,930 451
3,534,683
Actual Amounts
437,780 308,878 197,877 390,308 227,510 119,963 336,959 356,915 1,845 345,426 126,727 366,309 911 126,109 123,118 53,851
3,520,486
1,084,763 27,209
2,057,955 204,990 51,770
1,930 451
3,429,068
Variance
(14,060) 578 9,853 63,876 22,484 4,914
(83,060) 17,291 245 (7,900)
(10,546) (3,191) (1,089)
(12,257)
(22,115) 20,780
(14,197)
104,884 2,299 3,174 (9,335) 4,593
105,615
Revenues Over (Under) Expenditures ... $
See notes to basic financial statements.
Exhibit 7
CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2015
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Chicago- Chicago-
Midway O'Hare
International International
Airport Airport
Chicago Skyway
ASSETS AND DEFERRED OUTFLOWS CURRENT ASSETS:
Cash and Cash Equivalents $ 296,084
Investments 101,612
Accounts Receivable (Net of
Allowances) 173,260
Interest Receivable , 206
Due from Other Funds 33,672
Inventories 20,691
Cash and Cash Equivalents - Restricted 26,401
Investments - Restricted 153,863
Interest Receivable - Restricted 678
Other Assets - Restricted -
TOTAL CURRENT ASSETS 806,467
NONCURRENT ASSETS:
Cash and Cash Equivalents - Restricted
Investments - Restricted 141,005
Interest Receivable - Restricted
Other Assets - Restricted
Due from Other Governments - Restricted
Other Assets 4,662
Property, Plant, and Equipment:
Land 6,858
Structures, Equipment and
Improvements 4,594,202
Accumulated Depreciation (1,020,390)
Construction Work in Progress 242,155
Total Property, Plant and Equipment 3,822,825
TOTAL NONCURRENT ASSETS: 3,968,492
TOTAL ASSETS 4,774,959
DEFERRED OUTFLOWS 751,081
TOTAL ASSETS and DEFERRED OUTFLOWS $ 5,526,040
13,978 1,566 88,080
$ 37,383 $ 10,881 $ 34,044 27,821
107,060
26,192 809 139,825
43,986 623
389,922
142,326
156,205
3,499
560
2,702,083 (531,823) 92,339
69,791 244,354 473 3,064 3,709 842
115,165
1,602,470 (567,211) 19,126
1,491,783
2,263,159 1,169,550
2,422,863
134,926 $ 1,769,035
2,812,785 1,634,109
266,925 $ 3,079,710
915 280
98,883 44,621
90,710 174 31,532
537,631
444,146 208,378
3,800
385,013 380 92,962 21,500 791,937 197,849 1,301 3,800
1,200
2,147,266
847,676 1,723,789 4,118 28,312 4,326
9,851 29,763
12,609 1,021,159
490,817 18,404,547
(242,162) (5,558,647)
- 740,434
261,264 14,607,493 271,115 17,245,477
9,898,575 272,315
19,392,743 1,701,505 S 21,094,248
$ 272,315
See notes to basic financial statements.
42
Business-type Activities - Enterprise Funds
Major Funds
Water
LIABILITIES CURRENT LIABILITIES:
Voucher Warrants Payable $ 23,660
Due to Other Funds 22,061
Accrued and Other Liabilities 138,279
Unearned Revenue 19,856
Current Liabilities Payable From
Restricted Assets 179,515
TOTAL CURRENT LIABILITIES 383,371
NONCURRENT LIABILITIES: Revenue Bonds and
Commercial Paper Payable 2,440,282
Net Pension Liability 1,646,441
Derivative Instrument Liability 91,806
Other 1,577
TOTAL NONCURRENT LIABILITIES ... 4,180,106
TOTAL LIABILITIES 4,563,477
DEFERRED INFLOWS 11,050
Sewer
2,320 14,132 40,225 15,933
183,813
Chicago-Midway International Airport
20,300 7,225 758 2,993
256,423
87,826 119,102
1,777,496 663,872
1,561,948 296,025 31,360 2,332
2,441,368 1,891,665
5,681
2,697,791 2,010,767
1,744
Chicago-O'Hare International Airport
93,378 3,389 12,836 155,085
537,631 802,319
7,619,444 1,542,137
9,161,581 9,963,900
8,648
Chicago Skyway
147 15
162
162
1,626,667
Total
139,805 46,822 192,098 193,867
988,785 1,561,377
13,399,170 4,148,475 123,166 3,909 17,674,720 19,236,097
1,653,790
NET POSITION: Net Investment
in Capital Assets 1,514,009 559,715 (150,431) 707,991 261,264 2,892,548
Restricted Net Position:
Debt Service - - 11,034 14,798 - 25,832
Capital Projects 677 116,107 16,756 86,519 - 220,059
Passenger Facility Charges - - 5,701 149,306 - 155,007
Contractual Use Agreement - - 30,818 135,836 - 166,654
Air Development Fund - - - 338,133 - 338,133
Customer Facility Charge - - 25,936 65,577 - 91,513
Other - - 7,735 38,047 - 45,782
Unrestricted Net Position (563,173) (299,584) (191,025) (1,061,607) (1,615,778) (3,731,167)
TOTAL NET POSITION $ 951,513 $ 376,238 $ (243,476) $ 474,600 $ (1,354,514) $ 204,361
See notes to basic financial statements.
43
Exhibit 8
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Year Ended December 31, 2015
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds Major Funds
Chicago- Chicago-
Midway O'Hare
International International Chicago
Sewer Airport Airport Skyway Total
Total Operating Revenues 769,408
Operating Expenses:
Personnel Services 121,172
Contractual Services 56,402
Repairs and Maintenance ' 1,147
Commodities and Materials 22,357
Depreciation and Amortization 56,444
Capital Asset Impairment
General Fund Reimbursements 69,211
Pension Expense 436,025
Other 31,496
Total Operating Expenses 794,254
Operating Income (Loss) (24,846)
Nonoperating Revenues (Expenses):
Investment Income (Loss) 3,136
Interest Expense (106,092)
Passenger Facility Charges
Customer Facility Charges
Noise Mitigation Costs
Cost of Issuance
Swap Termination Fees
Other 191_
Total Nonoperating Revenues
(Expenses) (102,765)
Transfers Out (625)
Capital Grants -
Net Income (Loss) (128,236)
Net Position (Deficit) -
Beginning of Year - as restated (Note 17) 1,079,749
Net Position (Deficit)-End of Year $ 951,513
$ - $ 1,755,609
390,671
20,352
375,877 176,119 845,228 - 2,166,632
12,337 43,343 191,842 - 368,694
3,299 20,954 83,265 - 163,920
67,453 44,095 98,945 - 211,640
. - 22,357
40,444 47,719 231,670 8,727 385,004
3,320 - 3,320
40,007 - - - 109,218
187,593 60,767 339,546 - 1,023,931
14,717 92,112 - 138,325
351,133 231,595 1,040,700 8,727 2,426,409
24,744 (55,476) (195,472) (8,727) (259,777)
2,600 2,497 19,328|99|27,563
(83,656) (60,764) (319,373) - (569,885)
41,692 145,356 - 187,048
7,572 39,204 - 46,776
(23,323) (8,998) - (32,321)
(42) . (11,441) - (11,483)
(70,243) - - (70,243)
1,321 1,402 18,315 18,515 39,744
(149,978) (30,966) (117,609) 18,517 (382,801)
(625)
9,279 76,689 - 85,968
(125,234) (77,163) (236,392) 9,790 (557,235)
$ (1,354,514) $ 204,361
501,472 (166,313) 710,992 (1,364,304) 761,596
$ 376,238 $ (243,476) $ 474,600
See notes to basic financial statements.
Exhibit 9
CITY OF CHICAGO, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Cash Flows from Operating Activities:
Received from Customers
Payments to Vendors .:
Payments to Employees
Transactions with Other City Funds
Cash Flows Provided By
Operating Activities
Water
752,908 $ (76,860) (121,172) (29,944)
524,932
Sewer
358,014 (33,131) (42,894) (42,764)
239,225
Chicago-Midway International Airport
5 174,654 (79,932) (31,590) (19,043)
44,089
Chicago-O'Hare International Airport
i 888,432 (216,459) (175,052) (68,644)
428,277
Chicago Skyway
Total
2,174,008 (406,382) (370,708) (160,395)
1,236,523
Cash Flows from Capital and Related Financing Activities: Proceeds from Issuance of Bonds/
Commercial Paper/IEPA Loans
Acquisition and Construction of
Capital Assets
Capital Grant Receipts
Bond Issuance Costs
Payment to Refund Bonds
Principal Paid on Debt
Interest Paid
Passenger and Customer Facility Charges
Swap Termination Fees
Concessionaire Funds
Cash Flows (Used in) Provided By Capital
and Related Financing Activities
Cash Flows from Non Capital Financing Activities:
Noise Mitigation Program
Proceeds from Settlement Agreement
Cash Flows Used in Non Capital
Financing Activities
Cash Flows from Investing Activities'
Sale (Purchases) of Investments, Net
Investment Income (Loss)
Cash Flows Provided By (Used in)
Investing Activities
Net Increase (Decrease) in Cash and
Cash Equivalents
Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year
(33,328) 5,570 (42)
(17,265) (67,264) 49,244
2,176,836
(39,837) (58,040)
(70,243)
(465,219)
(356,905)
(63,085)
(359,547) 74,516 (11,441) (1,767,600) (240,631) (420,548) 187,567
(23,324) 1,403
(360,848)
(21,921)
(8,998) 984
223,420 3,205
73,092 1,963
200,252 4,184
204,436
86,756 90,452
(8,014)
226,625
75,055
373,361 16,927
286,338 36,147
34,138 134,614
390,288
449,703 964,696
S 322,485 S 177,208 $ 168,752 $ 1,414,399 S
2,342,281
38
38
(1,026,633)
80,086
(11,831)
(1,767,600)
(350,168)
(678,760)
236,811
(70,243)
38_
(1,246,019)
(32,322) 2,387
199 2
(29,935)
870,324 26,281
896,605
201
239 857,174 676 1,226,585 915 $ 2,083,759
See notes to basic financial statements.
Exhibit 9 - Concluded
CITY OF CHICAGO, ILLINOIS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended December 31, 2015
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Chicago- Chicago-
Midway O'Hare
International International
Airport Airport
Chicago Skyway
Reconciliation of Operating Income to Cash Flows from Operating Activities:
Operating Income (Loss) $
Adjustments to Reconcile:
Depreciation and Amortization
Pension Expense Other than Contribution
Provision for Uncollectible Accounts
Change in Assets and Liabilities:
(Increase) Decrease in Receivables
(Increase) Decrease in Due From Other Funds
Increase (Decrease) in Voucher Warrants
Payable and Due to Other Funds
Increase (Decrease) in Unearned Revenue
and Other Liabilities
(Increase) Decrease in Inventories and
Other Assets
40,444 183,165 16,154
(31,874) 3,223
(3,473)
7,035
(193)
(24,846) $ 24,744 $ (55,476) $ (195,472) $
(1,843) (7,749)
6,391
304
70
47,719 234,990 54,635 313,746 38
(14,127) 2,219
29,413
57,331
177
(8,727) 8,727
$ (259,777)
388,324 974,891 39,785
(85,382) 54,620
31,730
91,777
555
$ 524,932 $ 239,225 $ 44,089 $ 428,277 $
Supplemental Disclosure of Noncash Items:
Capital asset additions in 2015 have outstanding accounts payable
and accrued and other liabilities $ 85,942 $ 101,584 $ 26,441 $ 140,257 $ - $ 354,224
See notes to basic financial statements.
46
Exhibit 10
CITY OF CHICAGO, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2015
(Amounts are in Thousands of Dollars)
Pension Trust Agency
ASSETS
Cash and Cash Equivalents $ 183,456 $ 248,865
Investments - 65,822
Investments, at Fair Value Bonds and U.S. Government
Obligations 2,081,125
Stocks 4,605,898
Mortgages and Real Estate 674,155
Other 1,629,680
Cash and Investments with
Escrow Agent - 5,212
Property Tax Receivable - 91,552
Accounts Receivable, Net 1,086,308 68,161
Due From City 69,758
Property, Plant, Equipment and other 363
Invested Securities Lending Collateral 699,769 -
Total Assets $ 11,030,512 $ 479,612
LIABILITIES
Voucher Warrants Payable $ 246,543 $ 31,684
Accrued and Other Liabilities - 447,928
Securities Lending Collateral 699,769 -_
Total Liabilities $ 946,312 $ 479,612
Deferred Inflows $ . 66 $
Total Liabilities and Deferred Inflows $ 946,378 $ 479,612
NET POSITION
Restricted for Pension Benefits 10,084,134
Total Net Position $ 10,084,134
See notes to basic financial statements.
47
Exhibit 11
CITY OF CHICAGO, ILLINOIS
STATEMENT OF CHANGES IN PLAN NET POSITION FIDUCIARY FUNDS - PENSION TRUST FUNDS
Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Total
ADDITIONS Contributions:
Employees $ 302,450
City 993,048
Total Contributions 1,295,498
Investment Income: Net Appreciation in
Fair Value of Investments (89,658)
Interest, Dividends and Other 231,605
Investment Expense (48,260)
Net Investment Income 93,687
Securities Lending Transactions:
Securities Lending Income 3,039
Securities Lending Expense 341
Net Securities Lending Transactions 3,380
Total Additions 1,392,565
DEDUCTIONS
Benefits and Refunds of Deductions 1,955,829
Administrative and General 18,204
Total Deductions 1,974,033
Net Increase in Net Position (581,468)
Net Position:
Beginning of Year 10,665,602
End of Year $ 10,084,134
See notes to basic financial statements.
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
1) Summary of Significant Accounting Policies
The City of Chicago (City), incorporated in 1837, is a "home rule" unit under State of Illinois (State) law. The City has a mayor-council form of government. The Mayor is the Chief Executive Officer of the City and is elected by general election. The City Council is the legislative body and consists of 50 members, each representing one of the City's 50 wards. The members of the City Council are elected through popular vote by ward for four-year terms.
The accounting policies of the City are based upon accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB). Effective January 1, 2015, the City adopted the following GASB Statements:
GASB Statement No. 68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27 ("GASB 68"), established new financial reporting requirements for most governments that provide their employees with pension benefits through these types of plans. The City adopted GASB 68 for the year ended December 31, 2015. GASB 68 replaced the requirements of GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and GASB Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. GASB 68 required governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. The Statement also enhanced accountability and transparency through revised and new note disclosures and required supplementary information (see RSI and Notes 11 and 17). Beginning Net Position was restated as a result of implementation of this standard (see Notel 7).
GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date -an amendment of GASB Statement No. 68 ("GASB 71"), relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. The City adopted GASB 71 for the year ended December 31, 2015. This Statement amended paragraph 137 of Statement 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability and requires that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. There was no impact on the City's Financial Statements as a result of the implementation of GASB 71.
Other accounting standards that the City is currently reviewing for applicability and potential impact on the financial statements include:
GASB Statement No. 72 Fair Value Measurement and Application ("GASB 72"), addresses accounting and financial reporting issues related to fair value measurements. GASB 72 will be effective for the City beginning with its year ending December 31, 2016. This Statement provides guidance for determining a fair value measurement for financial reporting purposes and the related disclosures. This Statement requires a government to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value. This Statement establishes a hierarchy of inputs to valuation techniques used to measure fair value. This Statement also requires disclosures.to be made about fair value measurements, the level of fair value hierarchy, and valuation techniques.
GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68 ("GASB 73"), extends the approach to accounting and financial reporting established in Statement 68 to all pensions. Requirements of this Statement for pension plans that are within the scopes' of Statement No. 67, Financial Reporting for Pensions or Statement 68 will be effective for the City beginning with its year ending December 31, 2016. It establishes requirements for defined contribution pensions that are not within the scope of Statement 68. GASB 73 clarifies the application of certain provisions of Statements 67 and 68 with regard to: (1) Information that is required to be presented as notes, (2) Accounting and financial reporting for
49
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
separately financed specific liabilities, and (3) Timing of employer recognition of revenue.
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans ("GASB 74"), replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB (Other Postemployment Benefits) Measurement by Agent Employers and Agent Multiple-Employer Plans. GASB 74 will be effective for the City beginning with its year ending December 31, 2017. Included are requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended, Statement 43, and Statement No. 50, Pension Disclosures. GASB 74 also includes requirements to address financial reporting for assets accumulated for purposes of providing defined benefit OPEB through OPEB plans that are not administered through trusts that meet the specified criteria.
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions ("GASB 75"), replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. GASB 75 will be effective for the City beginning with its year ending December 31, 2018. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. In addition, this Statement details the recognition and disclosure requirements for employers with payables to defined benefit OPEB plans that are administered through trusts that meet the specified criteria and for employers whose employees are provided with defined contribution OPEB.
GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments ("GASB 76"), supercedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 will be effective for the City beginning with its year ending December 31, 2016.
GASB Statement No. 77, Tax Abatement Disclosures ("GASB 77"), requires governments that enter into tax abatement agreements to disclose: (1) Brief descriptive information concerning the agreement; (2) The gross dollar amount of taxes abated during the period; and 3) Commitments made by government, other than to abate taxes, that are part of the tax abatement agreement. GASB 77 will be effective for the City beginning with its year ending December 31, 2016.
GASB Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefit Pension Plans ("GASB 78"), amends the scope and applicability of Statement 68. It excludes pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local government pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local government employers, and (3) has no predominate state or local government employer. This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosure; and required supplementary information for pensions that have the characteristics described above. GASB 78 will be effective for the City beginning with its year ending December 31, 2016.
GASB Statement No. 79, Certain External Investment Pools and Pool Participants ("GASB 79"), addresses accounting and financial reporting for certain external investment pools and pool participants. It establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. GASB 79 establishes additional note disclosure requirements for qualifying external investment pools that measure all of their investments at amortized costs for financial reporting purposes and for governments that participate in those pools. GASB 79 will be effective for the City beginning with its year ending December 31, 2016.
50
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
GASB Statement No. 80, Blending Requirements for Certain Component Units, an amendment of GASB Statement No. 14 ("GASB 80"), amends the blending requirements for the financial statement presentation of component units of all state and local governments. GASB 80 will be effective for the City beginning with its year ending December 31, 2017.
GASB Statement No. 81, Irrevocable Split-Interest Agreements ("GASB 81"), requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. GASB 81 will be effective for the City beginning with its year ending December 31, 2017.
GASB Statement No. 82, Pension Issues, an amendment of GASB Statements No. 67, No. 68, and No. 73 ("GASB 82"), addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (Plan member) contribution requirements. GASB 82 will be effective for the City beginning with its year ending December 31, 2017.
Reporting Entity - The City includes the Chicago Public Library. The financial statements for the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), applicable to governmental units, as required by the Municipal Code of Chicago (Code).
The City's financial statements include the following legal entities as fiduciary trust funds:
The Municipal Employees' Annuity and Benefit Fund of Chicago is governed by a five-member board: three members are elected by plan participants and two are members ex-officio.
The Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago is governed by an eight-member board: two members are elected by plan participants, two are members ex-officio, two members are appointed by the City Department of Human Resources, one member is elected by retired plan participants and one member is elected by the local labor union.
The Policemen's Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are appointed by the Mayor.
The Firemen's Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are members ex-officio.
Financial statements for each of these four pension plans (collectively,"Pension Plans") may be obtained at the respective Pension Plans office.
Related Organizations - City officials are responsible for appointing a voting majority of the members of the boards of other organizations, but the City's accountability for these organizations does not extend beyond making appointments and no financial accountability or fiscal dependency exists between the City and these organizations. Therefore, the Chicago Park District, Chicago Public Building Commission, Chicago Public Schools, Community College District No. 508, Chicago Housing Authority and the Chicago Transit Authority are deemed to be related organizations.
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 government. For the most part, the effect of interfund activity has been removed from these statements. 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 user fees and charges for services.
51
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identified 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 fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds 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.
c) 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 financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental 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. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period with the exception of property tax revenue, which is recorded as deferred inflows unless taxes are received within 60 days subsequent to year-end. Licenses and permits, charges for services and miscellaneous revenues are not considered to be susceptible to accrual and are recorded as revenues when received in cash. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures generally are recorded when a liability is incurred, as under the accrual basis of accounting, except for interest and principal on long-term debt, the long-term portion of compensated absences, claims and judgments, and pension obligations.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
Federal, State and Local Grants Fund accounts for the expenditures for programs, which include general government, health, public safety, transportation, aviation, cultural and recreational, and capital outlays. The majority of revenues are provided by several agencies of the Federal government, departments of the Illinois State government and City resources.
Special Taxing Areas Fund accounts for expenditures for special area operations and maintenance and for redevelopment project costs as provided by tax levies on special areas.
Service Concession and Reserve Fund accounts for monies committed for mid- and long-term uses. The Mid-term portion is subject to appropriation for neighborhood human infrastructure programs, health, and other initiatives, whereas the Long-term portion is committed for future budgetary and credit rating stabilization. These reserves were created as a result of the Skyway Lease and Parking Meter System transactions. The deferred inflows result from long-term concession and lease transactions whose proceeds are recognized as revenue over the term of the agreements.
Bond, Note Redemption and Interest Fund accounts for the expenditures for principal and interest as provided by property tax, utility tax, sales tax, transportation tax, and investment income.
52
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Community Development and Improvement Projects Funds account for proceeds of debt used to acquire property, finance construction, and finance authorized expenditures and supporting services for various activities.
Within the governmental fund types, fund balances are reported in one of the following classifications:
Nonspendable includes amounts that cannot be spent because they are either: (a) not in a spendable form; or (b) legally or contractually required to be maintained intact.
Restricted includes amounts that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed includes amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority (i.e, City Council); to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint. The City's highest level of decision-making authority is held by the City Council. The City Council passes Ordinances to commit their fund balances.
Assigned includes amounts that are constrained by the City's intent to be used for specific purposes, but that are neither restricted nor committed. Intent is expressed by: (a) the City Council itself; or (b) a body or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. The Budget Director or Comptroller have authority to assign amounts related to certain legal obligations outside of the appropriation process within the General Fund. Within the other governmental fund types (special revenue, debt service, and capital projects) resources are assigned in accordance with the established fund purpose and approved appropriation. Residual fund balances in these fund types that are not restricted or committed are reported as assigned.
Unassigned includes the residual fund balance that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds.
The City reports the following major proprietary funds as business-type activities:
Water Fund accounts for the operations of the Chicago Water System (Water). The Water system purifies and provides Lake Michigan water for the City and 125 suburbs. The Water Fund operates two water purification facilities with a combined pumping capacity of 2,160 million gallons per day and 12 pumping stations with a combined pumping capacity of 3,661 million gallons per day.
Sewer Fund accounts for the operations of the Wastewater Transmission System (Sewer). The Sewer system transports wastewater to the Metropolitan Water Reclamation District of Greater Chicago for processing and disposal. This service is provided for the residents and businesses of the City and certain suburban customers.
Chicago Midway International Airport Fund records operations of Chicago Midway International Airport (Midway) that provides regional travelers with access to airlines that generally specialize in low-cost, point-to-point, origin and destination passenger services. Midway Airport is conveniently located 10 miles from downtown Chicago.
Chicago-O'Hare International Airport Fund records operations of Chicago-O'Hare International Airport (O'Hare), the primary commercial airport for the City. The airlines servicing the airport operate out of four terminal buildings. Three domestic terminal buildings, having a total of 169 gates, serve domestic flights and certain international departures. The International Terminal, having a total of 20 gates and five remote aircraft parking positions, serves the remaining international departures and all international arrivals requiring customs clearance.
53
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Chicago Skyway Fund records operations of the Chicago Skyway (Skyway) which provides vehicle passage across the Calumet River, between the State of Indiana and the State of Illinois (State) through the operation of a tollway which consists of a 7.8-mile span connecting the Dan Ryan Expressway to the Indiana Toll Road. Facilities include a single toll plaza consisting of a central office, maintenance garage and toll collection area. In January 2005, the City entered into a long-term Concession and Lease Agreement of the Skyway, granting a private company the ability to operate and to collect toll revenue during the 99-year term of the agreement. The City received a one-time upfront payment of $1.83 billion.
Additionally, the City reports the following fiduciary funds:
Pension Trust Funds report expenditures for employee pensions as provided by employee and employer contributions and investment earnings.
Agency Funds account for transactions for assets held by the City as agent for certain activities or for various entities. Payroll deductions and special deposits are the primary transactions accounted for in these funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payment-in-lieu of taxes and other charges between the City's water, sewer, airports and skyway funds. 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 or applicants for goods and services, or privileges provided, or fines; (2) operating grants and contributions; and (3) capital grants and contributions, .including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Certain indirect costs have been included as part of the program expenses reported for the various functional activities.
In the fund financial statements, 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 water and sewer funds are charges to customers for sales and services. The airport funds' principal operating revenues are derived from landing fees and terminal use charges as well as rents and concessions. Operating expenses for enterprise 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's policy to use restricted resources first, then unrestricted resources, as they are needed.
The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Accordingly, actual results could differ from those estimates.
d) Assets, liabilities, deferred inflows, deferred outflows, and net position or equity
i) Cash, Cash Equivalents and Investments generally are held with the City Treasurer as required by the Code. Interest earned on pooled investments is allocated to participating funds based upon their average combined cash and investment balances. Due to contractual agreements or legal restrictions, the cash and investments of certain funds are segregated and earn and receive interest directly. The City uses separate escrow accounts in which certain tax revenues are deposited and held for payment of debt.
The Code permits deposits only to City Council-approved depositories, which must be regularly organized state or national banks and federal and state savings and loan associations, located within the City, whose deposits are federally insured.
54
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Investments authorized by the Code include interest-bearing general obligations of the City, State and U.S. Government; U.S. Treasury bills and other noninterest-bearing general obligations of the U.S. Government purchased in the open market below face value; domestic money market funds regulated and in good standing with the Securities and Exchange Commission and tax anticipation warrants issued by the City. The City is prohibited by ordinance from investing in derivatives, as defined, without City Council approval. The City values its investments at fair value or amortized cost. U.S. Government securities purchased at a price other than par with a maturity of less than one year are reported at amortized cost.
The City's four retirement plans are authorized to invest in bonds, notes, and other obligations of the U.S. Government; corporate debentures and obligations; insured mortgage notes and loans; common and preferred stocks; stock options; real estate; and other investment vehicles as set forth in the Illinois Compiled Statutes. These investments are reported at fair value.
Repurchase agreements can be purchased only from banks and certain other institutions authorized to do business in the State. The City Treasurer requires that securities that are pledged to secure these agreements have a fair value equal to the cost of the repurchase agreements plus accrued interest.
Investments generally may not have a maturity date in excess of thirty years from the date of purchase. Certain other investments are held in accordance with the specific provisions of applicable ordinances.
Cash equivalents include certificates of deposit and other investments with maturities of three months or less when purchased.
Deficit cash balances result in interfund borrowings from the aggregate of funds other than escrowed funds. Interest income and expense are generally not recognized on these interfund borrowings.
State statutes and the City's Pension Plans' policies permit lending Pension Plan securities to broker-dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future. Securities lent at year-end for cash collateral are presented as not categorized in the schedule of custodial credit risk; securities lent for securities collateral are classified according to the category for the collateral.
Receivables and Payables activity between funds are representative of services rendered, outstanding at the end of the fiscal year, and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
All trade and property tax receivables are shown net of an allowance for uncollectibles. The allowance is based on historical trends. The estimated value of services provided but unbilled at year-end has been included in receivables.
Inventory includes government-wide inventories, which are stated at cost determined principally, using the average cost method. For proprietary funds, the costs of inventories are recorded as expenses when used (consumption method). Governmental fund inventories are accounted for using the purchases method and represent nonspendable resources because they do not represent expendable available financial resources.
Assets Held for Resale includes land and buildings of $4.1 million, recorded at lower of cost or market in the Federal, State and Local Grant Funds. These assets are purchased through the use of federal grants and City resources and are intended to be resold.
Restricted Assets include certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment. These assets are classified as restricted or committed in
55
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
the basic financial statements because they are maintained in separate bank accounts and their use is limited by applicable bond covenants or specific City Council action.
The Water and Sewer funds maintain Rate Stabilization Accounts where any net revenues remaining after providing sufficient funds for all required deposits in the bond accounts may be transferred upon the direction of the City to be used for any lawful purpose of the specific fund.
The O'Hare and Midway funds maintain Passenger Facility Charge accounts as restricted as they are subject to Federal Aviation Administration regulation and approval, to finance specific eligible capital and debt related activities.
vi) Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets, or a network of assets, with an initial cost of more than $5,000 (not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market 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.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalization value of the assets constructed. The total interest expense (Governmental and Business Activities) incurred by the City during the current fiscal year was $1,490.2 million, of which $70.1 million was capitalized as part of the capital assets under construction projects in proprietary funds.
Property, plant, and equipment of the City are depreciated using the straight-line method, in the year subsequent to acquisition or when placed into service, over the following estimated useful lives:
Utility plant 25- 100 years
Utility structures and improvements 50 - 100 years
Buildings and improvements 15- 40 years
Airport runways, aprons, tunnels, taxiways, and paved roads 5 - 30 years
Bridge infrastructure 10- 40 years
Lighting infrastructure 25 years
Street infrastructure ! 10- 25 years
Transit infrastructure 40 years
Equipment (vehicle, office, and computer) 5 - 20 years
The City has a collection of artwork and historical treasures presented for public exhibition and education that are being preserved for future generations. The proceeds from sales of any pieces of the collection are used to purchase other acquisitions. A portion of this collection is not capitalized or depreciated as part of capital assets.
Deferred Outflows represent the. fair value of derivative instruments that are deemed to be effective hedges and unamortized loss on bond refundings, differences between estimated and actual investment earnings related to pensions, and changes in actuarial assumptions related to pensions.
Employee Benefits are granted for vacation and sick leave, workers' compensation and health care. Unused vacation leave is accrued and may be partially carried over for one year. Sick leave is accumulated at the rate of one day for each month worked, up to a maximum of 200 days. Severance of employment terminates all rights to receive compensation for any unused sick leave. Sick leave pay is
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
not accrued. Employee benefit claims outstanding, including claims incurred but not reported, are estimated and recorded in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
Employees are eligible to defer a portion of their salaries until future years under the City's deferred compensation plan created in accordance with Internal Revenue Code Section 457. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Third-party administrators who maintain the investment portfolio administer the Plan. The plan's assets have been placed in trust accounts with the plan administrators for the exclusive benefit of participants and their beneficiaries and are not considered assets of the City.
The City is subject to the State of Illinois Unemployment Compensation Act and has elected the reimbursing employer option for providing unemployment insurance benefits for eligible former employees. Under this option, the City reimburses the State for claims paid by the State. Expenditures for workers' compensation are recorded when paid in the governmental funds. A liability for these amounts is recorded in the government-wide and proprietary fund financial statements.
Judgments and claims are included in the government-wide financial statements and proprietary fund types. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. In the fund financial statements, expenditures for judgments and claims are recorded on the basis of settlements reached or judgments entered within the current fiscal year. Amounts that related to deferred compensatory, time and reserves for questioned costs are treated the same way.
Long-term obligations are included 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, as well as issuance costs, are deferred and amortized over the life of the related debt, except in the case of refunding debt transactions where the amortization period is over the term of the refunding or refunded debt, whichever is shorter.
The City enters into interest rate swap agreements to modify interest rates and/or cash flows on outstanding debt. For existing swaps, the net interest expenditures resulting from these arrangements are recorded as interest expense. The fair value of derivative instruments that are deemed to be effective is accounted for as deferred outflows. Derivative instruments that are deemed not effective are adjusted to fair value with the change in fair value recorded to investment earnings. Under certain bond ordinances adopted by the City Council, interest rate swaps and swaptions are authorized to be entered into by designated City officials in connection with certain bonds issued by the City. For swaps related to O'Hare Bonds or Midway Bonds, airline approval is also required before entering into a swap agreement.
In the fund financial statements, governmental funds 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 and discounts given on debt issued are reported as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.
Certain debt obligations are to be paid from sales tax, motor fuel or special area taxes. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's four pension plans and additions to/deductions from the City's Pension Plans fiduciary net position have been determined on the same basis as they are reported by the Pension Plans. For this purpose,
57
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The financial statements of the Plans are prepared using the accrual basis of accounting.
Deferred inflows represent amounts to be recognized as revenue on a straight line basis over the life of the related long-term lease and concession agreements and differences between projected and actual actuarial experience related to pensions. In the fund financials, grants that meet all of the eligibility criteria except for time availability and property taxes levied for a future period are also included in deferred inflows.
Fund equity in the government-wide statements is classified as net position and displayed in three components:
Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or any other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
Restricted net position - Consists of net position with constraints placed on the use either by external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or are legally restricted through constitutional provisions or enabling legislation.
Restricted net position for business activities are provided in Exhibit 7, Statement of Net Position, Proprietary Funds.
Unrestricted - All other net positions that do not meet the definition of "restricted" or "net investment in capital assets." As of December 31, 2015, the unrestricted net position represents a deficit.
2) Reconciliation of Government-wide and Fund Financial Statements
a) Explanation of certain differences between the governmental funds balance sheet and the government-wide statement of net position.
i) The governmental funds balance sheet includes a reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "Other long-term assets are not . available to pay for current-period expenditures and therefore are deferred in the funds." The details of this $1,623.9 million are as follows (dollars in thousands):
Deferred inflows - property tax
Deferred inflows - grants
Net adjustment to increase fund balance - total governmental funds
- to arrive at net position - governmental activities
1,384,729 239,199
1,623,928
ii) Another element of that reconciliation explains that "Certain liabilities and deferred outflows, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this $35,150.7 million are as follows (dollars in thousands):
58
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Long-term liabilities:
Total bonds, notes and certificates payable $ 10,608,314
Pension benefits 29,697,694
Other postemployment benefits 214,535
Pollution remediation 32,850
Claims and judgments 850,561
Total Long-term liabilities 41,403,954
Accounts payable - infrastructure retainage 19,245
Bonds, notes and other obligations payable current (150,891)
Other assets - issuance costs (bond insurance) (13,037)
Deferred outflows-unamortized loss on refunding (147,937)
Deferred outflows-pension costs (7,039,762)
Deferred inflows-pension 187,878
Accrued and other liabilities - compensated absences 88,909
Accrued and other liabilities - pension payable to pension funds .. 802,302
Net adjustment to reduce fund balance - total governmental funds - to arrive at net position -
governmental activities $ 35,150,661
b) Explanation of certain differences between the governmental funds' statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities.
i) The governmental funds statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position - governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statements of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $223.1 million are as follows (dollars in thousands):
Capitalized asset expenditures $ 596,883
Depreciation expense (373,696)
Loss - on disposal of capital assets (134)
Net adjustment to increase net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ 223,053
ii) Another element of that reconciliation states that "Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position." The details of this decrease of $824.9 million are as follows (dollars in thousands):
59
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Proceeds of debt $ (1,117,047)
Proceeds from Line of Credit $ (239,131)
Premium 23,108
Principal retirement 513,806
Interest expense (5,664)
Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ (824,928)
Another element of that reconciliation states that "Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds." The details of this decrease of $4,825.5 million are as follows (dollars in thousands):
Claims and judgments $ 50,055
Pension costs $ (4,884,903)
Other post employment benefit liabilities 38,409
Pollution remediation (24,318)
Vacation 1,951
Lease obligations (6,052)
Inventory (670)
Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ (4,825,528)
3) Stewardship, Compliance and Accountability
a) Annual Appropriation Budgets are established for the General Fund and the Vehicle Tax, Pension, Chicago Public Library and certain Miscellaneous, Special Events, Tourism and Festivals nonmajor Special Revenue Funds, on a non-GAAP budgetary basis:
Prior to October 15, the Mayor submits to the City Council a proposed budget of expenditures and the means of financing them for the next year.
The budget document is available for public inspection for at least ten days prior to passage of the annual appropriation ordinance by the City Council, which is also required to hold at least one public hearing.
Prior to January 1, the budget is legally enacted through passage of the appropriation ordinance.
Subsequent to the enactment of the appropriation ordinance, the City Council has the authority to make necessary adjustments to the budget, which results in a change in total or individual appropriations. The legal level of budgetary control is designated in the budget by object grouped by purpose except for the Motor Fuel Tax Fund, which is subsequently re-appropriated by project. A separate Motor Fuel Tax Fund Report demonstrates compliance with annual and project-length budgets required by the State. The separately issued Supplement to the Comprehensive Annual Financial Report provides budgetary information for all other budgeted funds. Copies of this report are available upon request.
All annual appropriations unused and unencumbered lapse at year-end. Encumbered appropriations are carried forward to the following year. Project-length financial plans are adopted for Capital Project Funds. Appropriations for Debt Service Funds are established by bond ordinance.
60
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
b) Reconciliation of GAAP Basis to Budgetary Basis - The City's budgetary basis of accounting used for budget vs. actual reporting differs from GAAP. For budgetary purposes, encumbrances are recorded as expenditures but are included in "Unassigned" fund balance for GAAP purposes. For budgetary purposes, proceeds of long-term debt and transfers in are classified as revenues. For budgetary purposes prior years' resources used to cover current year budgetary expenditures are recorded as revenues. For GAAP purposes, proceeds of long-term debt and transfers out are treated as other financing sources. Provision for doubtful account expenditures are not budgeted. A reconciliation of the different basis of revenue and expenditure recognition for the year ended December 31, 2015 is as follows (dollars in thousands):
General Fund
Revenues, GAAP Basis ~$ 3,466,635
Add:
Proceeds of Debt 19,300
Transfers In 34,551
Prior Year's Surplus Utilized -
Revenues, Budgetary Basis $ 3,520,486
Expenditures, GAAP Basis $ 3,433,102
Add:
Transfers Out 12,760
Encumbered in 2015 24,377
Deduct:
Payments on Prior Years' Encumbrances (35,144)
Provision for Doubtful Accounts and Other (6,027)
Expenditures, Budgetary Basis $ 3,429,068
c) Individual Fund Deficits include the Chicago Skyway Fund, an Enterprise Fund, which has a fund deficit of $1,354.5 million which management anticipates will be funded through recognition of deferred inflows. Midway International Airport Fund has a fund deficit of $243.5 million which will be funded through future revenues. Federal State and Local Grants, a governmental fund, has a deficit of $216.1 million and will be funded by the recognition of deferred grant inflows and unearned revenue. The Service Concession and Reserve Fund, a Special Revenue Fund, has a deficit fund balance of $934.0 million which will be funded through the recognition of deferred inflows.
61
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
4) Restricted and Unrestricted Cash, Cash Equivalents and Investments
a) Investments As of December 31, 2015, the City had the following Investments (dollars in thousands):
Investment Type Investment Maturities (in Years)
More Than
Less Than 1 1-5 6-10 10 Total
City Funds
U.S. Treasuries $ - $ 19,759 $ - $ - $ 19,759
U.S. Agencies* 646,573 1,262,652 57,305 100,795 2,067,325
Commercial Paper 319,725 - - - 319,725
Corporate Bonds 109,108 302,188 452,131 25,760 889,187
Municipal Bonds 106,366 297,016 38,896 34,550 476,828
Certificates of Deposit and
Other Short-term 2,945,863 - - - 2,945,863
Total City Funds $ 4,127,635 $ 1,881,615 $ 548,332 $ 161,105 $ 6,718,687
*U.S. Agencies include investments in government-sponsored enterprises such as Federal National Mortgage Association, Federal Home Loan Banks, and Federal Home Loan Mortgage Corporation
Pension Trust Funds
U.S. and Foreign
Government Agencies $ 268,952 $ 241,993 $ 156,006 $ 361,048 $ 1,027,999
Corporate Bonds 768,419 506,897 362,282 231,212 1,868,810
Corporate Equities 5,061,898 - - - 5,061,898
Pooled Funds 28,134 2,092 18,709 - 48,935
Real Estate 646,871 - - - 646,871
Securities Received from
Securities Lending 699,769 - - - 699,769
Venture Capital 309,692 - - - 309,692
Certificates of Deposit and
Other Short-term 161,508 - - - 161,508
Derivatives 66 - - - 66
Other 38,933 6,459 2,653 - 48,045
Total Pension Trust Funds $ 7,984,242 $ 757,441 $ 539,650 $ 592,260 $ 9,873,593
Total S 12,111,877 $ 2,639,056 $ 1,087,982 $ 753,365 $ 16,592,280
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits all securities so purchased, except tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments representing a debt obligation of the City, which shall show on their face that they are fully payable as to principal and interest, where applicable, if any, within thirty years from the date of purchase.
Credit Risk - With regard to credit risk, the Code limits the investments in securities to:
Interest-bearing general obligations of the United States and the State of Illinois;
United States treasury bills and other non-interest bearing general obligations of the United States or United States government agencies when offered for sale at a price below the face value of same, so as to afford the city a return on such investment in lieu of interest;
62
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments representing a debt obligation issued by the City of Chicago;
Commercial paper which: (1) at the time of purchase, is rated in the two highest classifications by at least two accredited ratings agencies; and (2) matures not more than 270 days after the date of purchase;
Reverse repurchase agreement if: (1) the term does not exceed 90 days; and (2) the maturity of the investment acquired with the proceeds of the reverse repurchase agreement does not exceed the expiration date of the reverse repurchase agreement; Reverse repurchase agreements may be transacted with primary dealers and financial institutions, provided that the City has on file a master repurchase agreement;
Certificates of deposit of banks or savings and loan associations designated as municipal depositories which are insured by federal deposit insurance; provided that any amount of the deposit in excess of the federal deposit insurance shall be collateralized as noted in Custodial Credit Risk -Cash and Certificates of Deposit below;
Bankers acceptance of banks whose senior obligations, at the time of purchase, are rated in either the AAA or AA rating categories by at least two accredited ratings agencies;
Tax-exempt securities exempt from federal arbitrage provisions applicable to investments of . proceeds of the City's tax-exempt debt obligations;
Domestic money market mutual funds regulated by and in good standing with the Securities and Exchange Commission; provided that such money market mutual funds' portfolios are limited to investments authorized by this section;
Any other suitable investment instrument permitted by state laws governing municipal investments generally, subject to the reasonable exercise of prudence in making investments of public funds;
Except where otherwise restricted or prohibited, a non-interest-bearing savings account, non-interest-bearing checking account or other non-interest bearing demand account established in a national or state bank, or a federal or state savings and loan association, when, in the determination of the treasurer, the placement of such funds in the non-interest bearing account is used as compensating balances to offset fees associated with that account that will result in cost savings to the City;
Bonds of companies organized in the United States with assets exceeding $500.0 million that, at the time of purchase, are rated not less than A-, or equivalent rating, by at least two accredited ratings agencies;
Debt instruments of international financial institutions, including but not limited to the World Bank and the International Monetary Fund, that, at the time of purchase, are rated within 4 intermediate credit ratings of the United States sovereign credit rating by at least two accredited ratings agencies, but not less than an A-rating, or equivalent rating. The maturity of investments authorized in this subsection shall not exceed 10 years. For purposes of this subsection, an "international financial institution" means a financial institution that has been established or chartered by more than one country and the owners or shareholders are generally national governments or other international institutions such as the United Nations;
United States dollar denominated debt instruments of foreign sovereignties that, at the time of purchase, are rated within 4 intermediate credit ratings of the United States sovereign credit rating by at least two accredited ratings agencies, but not less than an A-rating or equivalent rating;
Interest-bearing bonds of any county, township, city, village, incorporated town, municipal corporation, or school district, of the State of Illinois, of any other state, or of any political subdivision or agency of the State of Illinois or of any other state, whether the interest earned thereon is taxable or tax-exempt under federal law. The bonds shall be registered in the name of the city or held under a custodial agreement at a bank. The bonds shall be rated, at the time of purchase, not less than A-, or equivalent rating, by at least two accredited rating agencies with nationally recognized expertise in
63
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
rating bonds of states and their political subdivisions;
Bonds registered and regulated by the Securities and Exchange Commission and for which the full faith and credit of the State of Israel is pledged for payment; provided that the bonds have an A-rating or above or equivalent rating by at least two accredited ratings agencies;
Bonds, notes, debentures, or other similar obligations of agencies of the United States rated, at the time of purchase, no less than AAA by at least two accredited rating agencies.
Total holdings across all funds held by the treasurer shall have no less than an overall average rating of Aa1 on a quarterly basis, as rated by two accredited rating agencies. The following schedule summarizes the City's and Pension Trust Funds' exposure to credit risk (in thousands):
City
158,839 2,298,276 643,100 14,081
Pension Trust Quality Rating Funds
214,046 109,917 173,539 340,618 229,839 173,386 32,295 748 246 356 315,476 578,400
Aaa/AAA...
Aa/AA
A/A
Baa/BBB...
Ba/BB
B/B
Caa/CCC..
Ca
C/CC
DID
P1/A1
Not Rated*.
Quality Rating
Aaa/AAA...
Aa/AA
A/A
Baa/BBB...
Ba/BB
B/B
Caa/CCC.
Ca
C/CC
29,959 3,574,432
$ 6,718,687
DID
Total Funds
$ 2,168,866
Not Rated
Other
* Not rated is primarily composed of money market mutual funds.
iii) Custodial Credit Risk - Cash and Certificates of Deposit: This is the risk that in the event of a bank failure, the City's Deposits may not be returned. The City's Investment Policy states that in order to protect the City public fund deposits, depository institutions are to maintain collateral pledges on City deposits and certificates of deposit during the term of the deposit.
For certificates of deposit of banks or savings and loan associations designated as municipal depositories which are insured by federal deposit insurance, any amount of the deposit in excess of the federal deposit insurance shall be either: (1) fully collateralized at least 102 percent by: (i) marketable U.S. government securities marked to market at least monthly; (ii) bonds, notes, or other securities constituting the direct and general obligation of any agency or instrumentality of the United States; or (iii) bonds, notes or other securities constituting a direct and general obligation of any county, township, city, village, incorporated town, municipal corporation, or school district, of the State of Illinois or of any other state, or of any political subdivision or agency of the State of Illinois or any other state which are rated in either the AAA or AA rating categories by at least two accredited ratings agencies and maintaining such rating during the term of such investments; (2) secured by a corporate surety bond issued by an insurance company licensed to do business in Illinois and having a claims-paying rating in the top rating category as rated by a nationally recognized statistical rating organization and maintaining such rating during the term of such investment; or (3) fully collateralized at least 102 percent by an irrevocable letter of credit issued in favor of the City of Chicago by the Federal Home Loan Bank, provided that the Federal Home Loan Bank's short-term debt obligations are rated in the highest rating category by at least one accredited ratings agency throughout the term of the certificate of deposit.
The collateral required to secure City funds must be held in safekeeping and pursuant to collateral agreements which would prohibit release or substitution of pledged assets without proper written notification and authorization of the City Treasurer. The final maturity of acceptable collateral pledged shall not exceed 120 months.
64
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
The bank balance of cash and certificates of deposit with the City's various municipal depositories was $626.6 million. 98.3 percent of the bank balance was either insured or collateralized with securities held by City agents in the City's name. $10.5 million was uncollateralized at December 31, 2015, and thus was subject to custodial credit risk.
iv) Custodial Credit Risk - Investments: For an investment, this 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 investments or collateral securities that are in possession of an outside party. The City has no custodial credit risk exposure because investment securities are insured, registered and held by the City.
65
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
v) Foreign Currency Risk - In the case of the Pension Trust Funds, this is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The risk of loss is managed by limiting its exposure to fair value loss by requiring their international securities managers to maintain diversified portfolios. The following schedule summarizes the Pension Trust Funds' exposure to foreign currency risk (in
thousands):
Foreign Currency Risk
Australian dollar $ 52,232
Brazilian real 25,609
British pound 339,778
Canadian dollar 58,646
Chilean peso 1,782
Chinese yuan (64)
Columbian peso 1,471
Costa Rica colon 54
Czech Republic koruna 2,897
Danish krone 27,610
Egyptian pound 299
European euro 384,275
HK Chinese Yuan renminbi |910|Hong Kong dollar 150,575
Hungarian forint 377
Indian rupee 41,962
Indonesian rupiah 17,462
Japanese yen 334,440
Malaysian ringgit 6,669
Mexican peso 25,405
New Israeli shekel 9,497
New Romanian leu (1)
New Taiwan dollar 32,036
New Zealand dollar 1,078
Norwegian krone 15,429
Pakistan rupee 380
Peruvian Nuevo Sol (1)
Philippines peso 6,493
Polish zloty 3,390
Qatari riyal 602
Russian ruble 129
Singapore dollar 11,021
South African rand 28,168
South Korean won 56,261
Swedish krona 50,990
Swiss franc 93,798
Taiwan dollar 5,529
Thailand baht 11,737
Turkish lira 11,649
United Arab Emirates dirham... 4,313
Uruguayan peso |910|Total Pension Trust Funds $ 1,813,986"
66
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
vi) The following schedule summarizes the cash and investments reported in the basic financial statements (dollars in thousands):
Per Note 4:
Investments - City $ 6,718,687
Investments - Pension Trust Funds 9,873,593
$ 16,592,280
Per Financial Statements:
Restricted Investments $ 2,443,048
Unrestricted Investments 913,742
Investments with Fiduciary Funds 9,056,680
' Investments with Escrow Agent 666,686
Invested Securities Lending Collateral 699,769
Investments Included as Cash and Cash
Equivalents on the Statement of Net Position 2,812,355
$ 16,592,280
5) Property Tax
The City's property tax becomes a lien on real property on January 1 of the year it is levied. The Cook County Assessor (Assessor) is responsible for the assessment of all taxable real property within Cook County (County), except for certain railroad property assessed directly by the State. The County Board has established a triennial cycle of reassessment in which one-third of the County will be reassessed each year on a repeating schedule established by the Assessor.
Property in the County is separated into fifteen classifications for assessment purposes. After the Assessor establishes the fair market value of a parcel of land, that value is multiplied by one of the classification percentages to arrive at the assessed valuation (Assessed Valuation) for that parcel. These percentages range from 10.0 percent for certain residential, commercial, and industrial property to 25.0 percent for other commercial and industrial property.
The Illinois Department of Revenue has the statutory responsibility of ensuring uniformity of real property assessments throughout the State. Each year, the Department of Revenue furnishes the county clerks with an adjustment factor to equalize the level of assessment among counties. This factor (Equalization Factor) is then applied to the Assessed Valuation to compute the valuation of property to which a tax rate will be applied (Equalized Assessed Valuation). The County Clerk adds the Equalized Assessed Valuation of all real property in the County to the valuation of property assessed directly by the State and subtracts total amounts of EAV in Tax Increment Financing Districts to arrive at the base amount (Tax Base) used in calculating the annual tax rates.
The County Clerk computes the annual tax rate by dividing the levy by the Tax Base and then computes the rate for each parcel of real property by aggregating the tax rates of all governmental units having jurisdiction over that particular parcel. The County Treasurer then issues the tax bills. Property taxes are deposited with the County Treasurer, who remits to the City its respective share of the collections. Taxes levied in one year become due and payable in two installments during the following year on March 1 and August 1 or 30 days from mailing of tax bills if later than July 1. The first installment is 55.0 percent of the prior year's tax bill. The second installment tax bill equals the total tax liability for the year minus the first installment tax bill amount.
The City Council adopted an ordinance effective in 1994 limiting the City's aggregate property tax levy to an amount equal to the prior year's aggregate property tax levy plus the lesser of (a) five percent or (b) the percentage increase in the annualized Consumer Price Index. The ordinance provides an exception for that portion of any property tax debt service levy equal to the aggregate interest and principal payments on the City's general obligation bonds and notes during the 12-month period ended January 1, 1994, subject to annual increase in the manner described above for the aggregate levy, all as provided by the ordinance. Most general obligation bond levies approved after 2001 have also been excluded from this limit. In 2015 the City Council added an exception for portions of the property tax levy used to meet the City's pension obligations.
67
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
On October 28, 2015, the City increased its 2015 property tax levy by $318.2 million to provide for the additional pension fund contributions required under legislation adopted by the Illinois General Assembly in the spring of 2015. The amended levy provided an additional $221.9 million in contributions for the Policemen's Annuity and Benefit Fund and an additional $96.2 million in contributions for the Firemen's Annuity and Benefit Fund.
6) Interfund Balances and Transfers
a) The following balances at December 31, 2015 represent due from/to balances among all funds (dollars in thousands):
Fund Type/Fund Due From Due To
Governmental Funds:
General $ 154,104 $ 167,001
Federal, State and Local Grants 50,724 261,316
Special Taxing Areas 180,269 10,794
Service Concession and Reserve - 3,183
Bond, Note Redemption and Interest 32,161 104,247
Community Development and Improvement Projects.. 100,817 19,321
Nonmajor Governmental Funds 96,033 164,144
Total Governmental Funds 614,108 730,006
Enterprise Funds:
Water : 33,672 22,061
Sewer 26,192 14,132
Chicago Midway International Airport 1,566 7,225
Chicago-O'Hare International Airport 31,532 3,389
Chicago Skyway - 15
Total Enterprise Funds 92,962 46,822
Fiduciary activities:
Pension Trust 69,758 -
Total Fiduciary activities 69,758 -
Total $ 776,828 $ 776,828
The balances result 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.
b) The following balances at December 31, 2015 represent interfund transfers among all funds (dollars in
thousands):
Fund Type/Fund Transfer In Transfer Out
Governmental Funds-
General $ 34,551 $ 12,760
Federal, State and Local Grants - 10,000
Special Taxing Areas 6,632 46,247
Service Concession and Reserve - 11,000
Bond, Note Redemption and Interest 7,367 115,911
Community Development and Improvement Projects.. 38,057 1,096
Nonmajor Governmental Funds 143,002 31,970
Total Governmental Funds $ 229,609 $ 228,984
Business-type activities
Water - 625
Total Business-type activities _$ - $ - 625
Total $ 229,609 $ 229,609
68
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Transfers are used to move revenues from the fund that the statute or budget requires to collect them to the fund that the statute or budget requires to expend them and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.
7) Capital Assets
a) Capital Assets activity for the year ended December 31, 2015 was as follows (dollars in thousands):
Balance January 1, 2015
Governmental activities:
1,392,833 45,232 545,529
Capital assets, not being depreciated:
Land $
Works of Art and Historical Collections
1,983,594
Construction in Progress
Total capital assets, not being depreciated
2,574,150 1,439,294 8,410,792
Capital assets, being depreciated:
Buildings and Other Improvements
Machinery and Equipment
12,424,236
944,084 1,203,986 3,978,586 6,126,656
6,297,580
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and Other Improvements
Machinery and Equipment
Infrastructure
Total accumulated depreciation
8,281,174 $ 636,639 $ (409,613) $ 8,508,200
Total capital assets, being depreciated, net
Total governmental activities _$_
Business-type activities:
1,018,701 1,256,264
Capital assets, not being depreciated:
Land $
2,274,965
Construction in Progress
Total capital assets, not being depreciated
16,051,676 685,633
Capital assets, being depreciated:
Buildings and Other Improvements
16,737,309
4,824,614 365,174 5,189,788
11,547,521
Machinery and Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and Other Improvements
Machinery and Equipment
Total accumulated depreciation
13,822,486 $ 1,696,550
Total capital assets, being depreciated, net
22,103,660 $ 2,333,189
Total business-type activities _$_
Total Capital Assets $
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
b) Depreciation expense was charged to functions/programs of the City as follows (dollars in thousands):
Governmental activities:
General Government $ 42,410
Public Safety 34,729
Streets and Sanitation 14,882
Transportation 257,044
Health 728
Cultural and Recreational 23,903
Total Depreciation Expense - Governmental activities $ 373,696
Business-type activities:
Water $ 56,091
Sewer 37,431
Chicago Midway International Airport 47,660
Chicago-O'Hare International Airport 229,625
Chicago Skyway 8,615
Total Depreciation Expense - Business-type activities .. $ 379,422
8) Leases
a) Operating Leases
The City leases building and office facilities under noncancelable operating leases. Total costs for such leases were approximately $13.5 million for the year ended December 31, 2015.
The future minimum lease payments for these leases are as follows (dollars in thousands):
2016 $ 15,905
5,809
5,583
5,363
2020 4,031
2021 - 2025 10,683
2026 - 2030 593
2031 - 2035 109
2036- 2040 109
2041 - 2042 44
Total Future Rental Expense $ 48,229
b) Capital Leases
During 2005, the City entered into a sale and leaseback agreement with third parties pertaining to the City owned portion of the Orange Line rapid transit rail line with a book value of $430.8 million at December 31, 2005. Under the lease agreement, which provides certain cash and tax benefits to the third party, the City entered into a long-term lease for applicable assets back to the City under a lease.
In June 2015, the City terminated a sale and leaseback agreement with third parties pertaining to a City-owned portion of the Orange Line rapid transit rail line. The lease was terminated and the City regained unrestricted title to the transit line. Under the termination agreement relating to the rapid transit line, the City paid a net amount of $167.9 million to Prudential and a net payment of $52.5 million to Citizens Asset Finance.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
c) Lease Receivables
Most of the O'Hare land, buildings and terminal space are leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2015 (dollars in thousands):
2016 $ 97,549
97,555
96,357
95,340
1,597
2021 - 2025 8,302
2026 - 2030 9,592
2031 - 2035 9,564
Total Minimum Future Rental Income $ 415,856
Contingent rentals that may be received under certain leases based on the tenants' revenues or fuel flow are not included in minimum future rental income. Rental income for O'Hare, consisting of all rental and concession revenues except ramp rentals and automobile parking, amounted to $414.2 million, including contingent rentals of $87.0 million.
Most of the Midway land and terminal space is leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2015 (dollars in thousands):
2016 $ 38,833
38,788
38,566
38,566
38,566
2021 - 2025 192,831
2026 - 2030 192,831
Total Minimum Future Rental Income $ 578,981
Contingent rentals that may be received under certain leases based on tenants' revenues are not included in minimum future rental income. Rental income for Midway, consisting of all rental and concession revenues except aircraft parking fees and certain departure fees (turns) and automobile parking, amounted to $92.3 million, including contingent rentals of $40.0 million.
9) Short-term Debt
a) Matured bonds represent principal due on coupon bonds in which the coupons have not been presented for payment. As of December 31, 2015, the outstanding balance was at $0.7 million.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
10) Long-term Obligations
a) Long-term Debt activity for the year ended December 31, 2015 was as follows (in thousands):
Amounts
Balance Balance Due
January 1, December 31, within
2015* Additions Reductions 2015 One Year
Governmental activities: Bonds and notes payable:
General obligation and other debt $ 8,335,506 $ 1,327,521 $ 298,629 $ 9,364,398 $ 168,071
Tax increment 74,395 - 9,035 65,360 9,540
Revenue 743,795 28,657 18,400 754,052 18,170
9,153,696 1,356,178 326,064 10,183,810 195,781
Add unamortized premium/(discount) 154,767 (23,108) 14,460 117,199
Add accretion of capital appreciation bonds 298,012 31,506 22,213 307,305 19,949
Total bonds, notes and certificates payable 9,606,475 1,364,576 362,737 10,608,314 215,730
Other liabilities:
Net Pension liability * 18,345,143 11,352,551 - 29,697,694
Other postemployment benefits obligation * 252,944 - 38,409 214,535
Lease obligations 116,858 6,052 122,910
Pollution Remediation 8,532 24,318 - 32,850
Claims and judgments 900,616 136,201 186,256 850,561 102,414
Total other liabilities 19,624,093 11,519,122 347,575 30,795,640 102,414
. Total governmental activities $ 29,230,568 $ 12,883,698 $ 710,312 $ 41,403,954 $ 318,144
Business-type activities: Revenue bonds and notes payable:
Water $ 2,381,771 $ 62,059 $ 52,435 $ 2,391,395 $ 65,758
Sewer 1,638,935 87,080 39,837 1,686,178 46,427
Chicago-O'Hare International Airport 7,527,336 2,023,142 2,083,993 7,466,485 221,220
Chicago Midway International Airport 1,523,590 : 17,265 1,506,325 23,470
13,071,632 2,172,281 2,193,530 13,050,383 356,875
Add unamortized premium/(discount) 442,259 243,811 57,903 628,167
Add accretion of capital appreciation bonds 88,708 8,310 9,571 87,447 9,953
Net Pension liability * 1,745,446 2,403,029 - 4,148,475
Total business-type activities $ 15,348,045 $ 4,827,431 $ 2,261,004 $ 17,914,472 $ 366,828
Total long-term obligations $ 44,578,613 $ 17,711,129 $ 2,971,316 $ 59,318,426 $ 684,972
* Due to the implementation of GASB 68, the beginning balance related to Pension obligation has been restated and classified separately from Other Post-Employment Benefit obligation
The Pension obligation liability will be liquidated through a Special Revenue Fund (Pension Fund) as provided by tax levy and other operating revenues.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
b) Issuance of New Debt
Line of Credit
During 2015, the City drew $239.1 million from its line of credit to fund certain capital projects, debt refinancing or restructuring, and operating uses. The City has excluded this line of credit amount from current liabilities, as it intends and has the ability to refinance the obligation on a long-term basis.
General Obligation Bonds
General Obligation Bonds, Series 2015A ($345.5 million), and Taxable Series 2015B ($742.9 million) were sold at a discount in July 2015. The bonds have interest rates ranging from 5.0 percent to 7.75 percent and maturity dates from January 1, 2019 to January 1, 2042. Net proceeds of $1,064.8 million will be used to repay indebtedness incurred by the City under its Short Term Borrowing Program; fund the cost of terminating the sale/leaseback of the Orange Line rapid transit rail line; reimburse the City's General Fund for the cost of terminating an interest rate swap associated with the City's sales tax revenue bonds ($887.0 million), and to fund capitalized interest ($177.8 million).
Revenue Loans
In June 2013, the City entered into a loan agreement with the United States Department of Transportation under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program to complete the Wacker Drive Reconstruction Project. The loan amount of $98.66 million will fund the Chicago Riverwalk along the main branch of the Chicago River. The interest rate is 3.33 percent and the final maturity of the loan is January 1, 2048. As of December 31, 2015, the total outstanding loan amount is $45.8 million. Total loan disbursements made to the City in 2015 were $28.7 million.
Enterprise Fund Revenue Bonds and Notes
In August 2013, the City entered into a loan agreement with the United States Department of Transportation under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program to fund a portion of Consolidated Rental Car Facility at O'Hare, additions, extensions and improvements to the airport transit system (ATS) including the purchase of new ATS vehicles and certain public parking facilities. The loan amount of $288.1 million is subordinate to the O'Hare Customer Facility Charge Senior Lien Revenue Bonds, Series 2013. The interest rate is 3.86 percent and the final maturity of the loan is January 1, 2052. There were no loan disbursements made to the City as of December 31, 2015.
Chicago O'Hare International Airport General Airport Senior Lien Revenue and Revenue Refunding Bonds, Series 2015A-D ($1,947.4 million) were sold at a premium in October 2015. The bonds have interest rates ranging from 2.0 percent to 5.0 percent and maturity dates from January 1, 2016 to January 1, 2046. The net proceeds of $2,152.9 million will be used to fund certain capital projects ($196.3 million), repay certain outstanding Commercial Paper ($126.8 million), to refund certain General Airport Revenue Bonds maturities of bonds outstanding ($1,807.7 million), to fund debt service reserves ($8.9 million), and to fund capitalized interest ($13.2 million). The current refunding of the bonds decreased the City's total debt service payments by $312.1 million, resulted in a net economic gain of approximately $223.5 million and a book loss of approximately $19.4 million.
A loan agreement was signed on March 3, 2014, with the Illinois Environment Protection Agency to replace approximately 26 miles of damaged, undersized watermains located throughout the City with new 8-inch diameter watermain. In 2015, the Water Fund drew $47.0 million from this loan agreement. The loan has an interest rate of 1.995 percent with the maturity dates from December 17, 2015 to June 17, 2035.
A loan agreement was signed on October 15, 2014, with the Illinois Environment Protection Agency to install water meters at residents throughout the City that are currently unmetered. Private contractors will
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
perform the installation of new meters that will be equipped with AMR (Automatic Meter Reading) capabilities. In 2015, the Water Fund drew $15.0 million from this loan agreement. The loan agreement has an interest rate of 1.995 percent with maturity dates from April 14, 2016 to April 14, 2035.
Second Lien Wastewater Transmission Revenue Bonds, Series 2015 ($87.1 million) were sold at par in October 2015. The bonds have interest rates ranging from 2.591 percent to 6.042 percent and maturity dates from January 1, 2018 to January 1, 2039. The net proceeds of $86.4 million were used to refund the Line of Credit Notes used for the swap termination ($70.2 million), to fund debt service reserves ($10.5 million), and to fund capitalized interest ($5.7 million).
The Chicago O'Hare International Airport issued $75.8 million of Series 2013 Commercial Paper Notes in 2015. The proceeds from the issuance were used to finance portions of the costs of authorized airport projects. The Chicago O'Hare 2015 C&D Senior Lien Revenue Bonds were issued in 2015 to repay the outstanding Commercial Paper Notes.
v) Bond Conversions
In May 2015, the City converted its General Obligation Bonds (Neighborhoods Alive 21 Program), Series 2002B ($176.2 million) from variable rate to fixed rate. The bonds were converted at interest rates ranging from 5.0 percent to 5.5 percent and mandatory sinking fund or maturity dates from January 1, 2016 to January 1, 2037. Proceeds were used to pay a portion of the purchase price of the bonds mandatorily tendered on the conversion date and the costs of conversion. The remaining portion of $24.8 million was redeemed by the City.
In May 2015, the City converted its General Obligation Bonds, Project and Refunding Series 2003B ($170.1 million) from variable rate to fixed rate. The bonds were converted at interest rates ranging from 5.0 percent to 5.5 percent and maturity dates from January 1, 2016 to January 1, 2034. Proceeds were used to pay a portion of the purchase price of the bonds mandatorily tendered on the conversion date and the costs of conversion. The remaining portion of $11.8 million was redeemed by the City.
In June 2015, the City converted its General Obligation Bonds, Project and Refunding Series 2005D ($174.0 million) from variable rate to fixed rate. The bonds were converted at an interest rate of 5.5 percent and mandatory sinking fund or maturity dates from January 1, 2033 to January 1, 2040. Proceeds were used to pay a portion of the purchase price of the bonds mandatorily tendered on the conversion date and the costs of conversion. The remaining portion of $48.8 million was redeemed by the City.
In June 2015, the City converted its General Obligation Bonds, Refunding Series 2007E, F and G ($153.7 million) from variable rate to fixed rate. The bonds were converted at an interest rate of 5.5 percent and mandatory sinking fund or maturity dates from January 1, 2034 to January 1, 2042. Proceeds were used to pay a portion of the purchase price of the bonds mandatorily tendered on the conversion date and the costs of conversion. The remaining portion of $46.3 million was redeemed by the City.
In June 2015, the City converted its Sales Tax Revenue Refunding Bonds, Series 2002 ($111.7 million) from variable rate to fixed rate. The bonds were converted at interest rates ranging from 2.0 percent to 5.0 percent. Proceeds were used to pay the purchase price of the bonds mandatorily tendered on the conversion date and the costs of conversion.
In October 2015, the City converted $332.2 million outstanding of the Series 2008C Second Lien Wastewater Transmission Revenue Bonds to fixed rate at a premium. The'bonds have interest rates ranging from 4.0 percent to 5.0 percent and maturity dates ranging from January 1, 2017 to January 1, 2039. The net proceeds of $357.0 million were used to pay the mandatory tender prices of the Series 2008C Bonds ($332.2 million) and to fund a debt service reserve ($24.8 million).
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
c) Annual requirements listed below for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2016 have been excluded because funds for their payment have been provided for. Annual requirements to amortize debt outstanding as of December 31, 2015 are as follows (dollars in thousands):
General Obligation Tax Increment
Year Ending Principal Interest Principal Interest
December 31,
2016 $ 248,802 $ 513,801 $ 10,640 $ 1,795
272,292 502,587 11,795 1,566
294,922 490,141 16,010 1,295
306,743 476,199 6,020 960
322,009 463,749 4,135 706
2021-2025 1,598,905 2,114,820 12,060 686
2026-2030 1,777,148 1,737,110
2031-2035 2,264,423 1,121,593
2036-2040 1,394,481 500,995
2041-2045 517,520 51,425 : -
$8,997,245 $7,972,420 $ 60,660 $ 7,008
Revenue Business-type Activities
Year Ending Principal Interest Principal Interest
December 31,
2016 $ 17,880 $ 35,171 $ 356,875 $ 610,644
18,250 34,275 395,964 628,149
19,150 33,385 451,027 608,856
20,335 32,445 464,195 582,617
21,440 31,444 443,435 569,031
2021-2025 125,590 140,362 2,242,979 2,514,736
2026-2030 138,312 131,325 2,641,795 1,947,968
2031-2035 164,656 115,494 3,091,158 1,183,840
2036-2040 210,270 29,785 2,232,350 485,013
2041-2045 - 709,480 58,469
2046 - - 21,125 528
$ 735,883 $ 583,686 $13,050,383 $ 9,189,851
For the debt requirements calculated above, interest rates for fixed rate bonds debt range from .74 percent to 7.781 percent and interest on variable rate debt was calculated at the rate in effect or the effective rate of a related swap agreement, if applicable, as of December 31, 2015. Standby bond purchase agreements or letters of credit were issued by third party financial institutions that are expected to be financially capable of honoring their agreements.
The City's variable rate bonds may bear interest from time to time at a flexible rate, a daily rate, a weekly rate, an adjustable long rate, or the fixed rate as determined by the remarketing agent, in consultation with the City. An irrevocable letter of credit provides for the timely payment of principal and interest. In the event the bonds are put back to the bank and not successfully remarketed, or if the letter of credit agreements expire without an extension or substitution, the bank bonds will convert to a term loan. There is no principal due on the potential term loans within the next fiscal year.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
d) Derivatives
i) Interest Rate Swaps
(1) Objective of the swaps. In order to protect against the potential of rising interest rates and/or changes in cash flows, the City has entered into various separate interest rate swaps at a cost less than what the City would have paid to issue fixed-rate debt. (Dollars in thousands).
Fair Value at December 31, 2015
Classification
Notional Amount
Business-type Activities
Hedges:
Interest Rate Swaps.
Deferred Outflow of Resources
Deferred Outflow of Resources
(2) Terms, fair values, and credit risk. The objective and terms, including the fair values and credit ratings, of the City's hedging derivative instruments outstanding as of December 31, 2015, are as follows. The notional amounts of the swaps match the principal amounts of the associated debt. The City's swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in the associated "bonds payable" category. Under the swaps on a net basis for each related series of bonds, the City pays the counterparty a fixed payment and receives a variable payment computed according to the London Interbank Offered Rate (LIBOR) and/or The Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index. The terms as of December 31, 2015, are as follows (dollars in thousands):
Counter-Termi- party
Associated Notional Effective Fair nation Credit
Bond Issue Amounts Date Terms Values Date Rating
Hedging Instruments Business-type Activities:
Chicago Midway International Airport 81,885 12/14/2004 Pay 4.174%, receive SIFMA Plus .05% $ (18,423) 1/1/2035 A3/A
Revenue Bonds (Series 2004C&D) 54,590 4/21/2011 Pay 4.247%: receive SIFMA Plus .05% (12,937) 1/1/2035 Aa1/AA-
166,745 8/5/2004 Pay 3 8694%; receive 67% of 1 Mo. Libor (27,127) 11/1/2025 A1/A-
Water Variable Rate Revenue
Refunding Bonds (Series 2004) 177,830 8/5/2004 Pay 3.8669%: receive 67% of 1 Mo. Libor (35,932) 11/1/2031 Aa2/AA-
Second Lien Water Revenue
Refunding Bonds (Series 2000) 100,000 4/16/2008 Pay 3.8694%; receive 67% of 1 Mo. Libor (28,747) 11/1/2030 A1/A-
Total $(123.166)
See Table 31 in Statistical Section for Counterparty Entities and additional details for credit ratings.
See Footnote 18 - Subsequent Events for swap terminations and amendments to agreements effective in 2016.
Type and objective for all the Swaps is the same, as mentioned earlier.
(3) Fair Value. As of December 31, 2015, the swaps had a negative fair value of $123.2 million. As per industry convention, the fair values of the City's outstanding swaps were estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the forward rates implied by the yield curve correctly anticipate future spot rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Because
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
interest rates are below the Fixed Rate Paid, the City's swaps had negative values. During 2015, the City terminated the following swaps (dollars in thousands):
Termination
Associated Bond Issue: Amount
Series 2003B General Obligation Variable Rate Demand Bonds $ 30,951.5
Series 2005D General Obligation Variable Rate Demand Bonds 62,815.5
Series 2007EFG General Obligation Variable Rate Demand Bonds 62,007.0
Series 2002 Sales Tax Revenue Refunding Variable Rate Bonds 28,968.0
Series 2008C Second Lien Wastewater Transmission
Variable Rate Revenue Refunding Bonds 70,243.0
Series 1999A Near North Tax Increment Financing Bonds 2,240.0
Swap termination payments were recorded as Interest and Other Fiscal Charges.
Credit Risk. The City is exposed to credit risk (counterparty risk) through the counterparties with which it enters into agreements. If minimum credit rating requirements are not maintained, the counterparty is required to post collateral to a third party. This protects the City by mitigating the credit risk, and therefore the ability to pay a termination payment, inherent in a swap. Collateral on all swaps is to be in the form of cash or Eligible Collateral held by a third-party custodian. Upon credit events, the swaps also allow transfers, credit support, and termination if the counterparty is unable to meet the said credit requirements.
Basis Risk. Basis risk refers to the mismatch between the variable rate payments received on a swap contract and the interest payment actually owed on the bonds. The two significant components driving this risk are credit and SIFMA/LIBOR ratios. Credit may create basis risk because the City's bonds may trade differently than the swap index as a result of a credit change in the City. SIFMA/LIBOR ratios (or spreads) may create basis risk. With percentage of LIBOR swaps, if the City's bonds trade at a higher percentage of LIBOR over the index received on the swap, basis risk is created. This can occur due to many factors including, without limitation, changes in marginal tax rates, tax-exempt status of bonds, and supply and demand for variable rate bonds. The City is exposed to basis risk on all swaps except those that are based on Cost of Funds, which provide cash flows that mirror those of the underlying bonds. For all other swaps, if the rate paid on the bonds is higher than the rate received, the City is liable for the difference. The difference would need to be available on the debt service payment date and it would add additional underlying cost to the transaction.
Tax Risk. The swap exposes the City to tax risk or a permanent mismatch (shortfall) between the floating rate received on the swap and the variable rate paid on the underlying variable-rate bonds due to tax law changes such that the federal or state tax exemption of municipal debt is eliminated or its value reduced. There have been no tax law changes since the execution of the City's swap transactions.
Termination Risk. The risk that the swap could be terminated as a result of certain events including a ratings downgrade for the issuer or swap counterparty, covenant violation, bankruptcy, payment default or other defined events of default. Termination of a swap may result in a payment made by the issuer or to the issuer depending upon the market at the time of termination.
Rollover Risk. The risk that the City may be exposed to rising variable interest rates if (i) the swap expires or terminates prior to the maturity of the bonds and (ii) the City is unable to renew or replace the swap.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
(9) Swap payments and associated debt. As of December 31, 2015, debt service requirements of the City's outstanding variable-rate debt and net swap payments, assuming current interest rates remain the same, for their term are as follows (dollars in thousands):
Interest
Variable-Rate Bonds Rate
Year Ending Principal Interest Swaps, Net Total
December 31,
2016 $ 15,725 $ 272 $ 22,462 $ 38,459
16,500 264 21,834 38,598
17,200 257 21,178 38,635
25,975 248 20,469 46,692
33,950 235 19,427 53,612
2021.-2025 224,010 885 73,755 298,650
2026-2030 194,550 397 34,310 229,257
2031 - 2035 53,140 41 4,413 57,594
$ 581,050 $ 2,599 $ 217,848 $ 801,497
e) Debt Covenants
Water Fund - The ordinances authorizing the issuance of outstanding Water Revenue Bonds provide for the creation of separate accounts into which net revenues, as defined, or proceeds are to be credited, as appropriate. The ordinances require that net revenues available for bonds, as adjusted, equal 120 percent of the current annual debt service on the outstanding senior lien bonds and that City management maintains all covenant reserve account balances at specified amounts. The above requirements were met at December 31, 2015. The Water Rate Stabilization account had a balance in restricted assets of $91.2 million at December 31, 2015.
The ordinances authorizing the issuance of outstanding Second Lien Water Revenue Bonds provide for the creation of separate accounts into which monies will be deposited, as appropriate. The ordinances require that net revenues are equal to the sum of the aggregate annual debt service requirements for the fiscal year of the outstanding senior lien bonds and 110 percent of the aggregate annual debt service requirements of the outstanding second lien bonds. This requirement was met at December 31, 2015.
Sewer Fund - The ordinances authorizing the issuance of outstanding Wastewater Transmission Revenue Bonds provide for the creation of separate accounts into which net revenues, as defined, or proceeds are to be credited, as appropriate. The ordinances require that net revenues available for bonds equal 115 percent of the current annual debt service requirements on the outstanding senior lien bonds. This requirement was met at December 31, 2015. The Sewer Rate Stabilization account had a balance in restricted assets of $32.6 million at December 31, 2015.
The ordinances authorizing the issuance of outstanding Second Lien Wastewater Transmission Revenue Bonds provide for the creation of separate accounts into which monies will be deposited, as appropriate. The ordinances require that net revenues equal 100 percent of the sum of the current maximum annual debt service requirements of the outstanding senior lien bonds and the maximum annual debt service requirements of the second lien bonds. This requirement was met at December 31, 2015.
Chicago Midway International Airport Fund - The Master Indenture of Trust securing Chicago Midway Airport Revenue Bonds requires in each year the City set rates and charges for the use and operation of Midway and for services rendered by the City in the operation of Midway so that revenues, together with any other available monies and the cash balance held in the Revenue Fund on the first day of such fiscal year not then required to be deposited in any fund or account, will be at least sufficient (a) to provide for the Operation and Maintenance Expenses for the fiscal year and (b) to provide for the greater of (i) the
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CITY OF CHICAGO, ILLINOIS
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YEAR ENDED DECEMBER 31, 2015
amounts needed to be deposited into the First and Junior Lien Debt Service Funds, the Operations & Maintenance Reserve Account, the Working Capital Account, the First Lien Debt Service Reserve Fund, the Repair and Replacement Fund, and the Special Project Fund and (ii) an amount not less than 125 percent of the Aggregate First Lien Debt Service for such Fiscal Year reduced by an amount equal to the sum of any amount held in any Capitalized Interest Account for disbursement during such Fiscal Year to pay interest on First Lien Bonds. These requirements were met at December 31, 2015.
The Master Indenture of Trust Securing Chicago Midway Airport Second Lien Obligations requires that the City set rentals, rates and other charges for the use and operation of Midway and for certain services rendered by the City in the operation of Midway in order that in each Fiscal Year, Revenues, together with Other Available Moneys deposited with the First Lien Trustee or the Second Lien Trustee with respect to such Fiscal Year and any cash balance held in the First Lien Revenue Fund or the Second Lien Revenue Fund on the first day of such Fiscal Year not then required to be deposited in any Fund or Account under the First Lien Indenture for the Second Lien Indenture, will be at least sufficient (1) to provide for the payment of Operation and Maintenance Expenses for the Fiscal Year and (2) to provide for the greater of (A) or (B) as follows: (A) the greater of the amounts needed to make the deposits required under the First Lien Indenture described in the immediately preceding paragraph above; or (B) the greater of the amounts needed to make the deposits required under the First Lien Indenture described in the immediately preceding paragraph above or an amount not less than 110 percent of the Aggregate First Lien Debt Service and Aggregate Second Lien Debt Service for the Bond Year commencing during such Fiscal Year, reduced by (X) any amount held in any Capitalized Interest Account for disbursement during such Bond Year to pay interest on First Lien Bonds, and (Y) any amount held in any capitalized interest account established pursuant to a Supplemental Indenture under the Second Lien Indenture for disbursement during such Bond Year to pay interest on Second Lien Obligations. These requirements were met at December 31, 2015.
iv) Chicago-O'Hare International Airport Fund - The Master Indenture of Trust securing Chicago O'Hare International Airport General Airport Senior Lien Obligations requires that Revenues in each Fiscal Year, together with Other Available Moneys deposited with the Trustee with respect to that Fiscal Year and any cash balance held in the Revenue Fund on the first day of that Fiscal Year not then required to be deposited in any Fund or Account, will be at least sufficient: (i) to provide for the payment of Operation and Maintenance Expenses for the Fiscal Year; and (ii) to provide for the greater of (a) the sum of the amounts needed to make the deposits required to be made pursuant to all resolutions, ordinances, indentures and trust agreements pursuant to which all outstanding Senior Lien Bonds Obligations or other outstanding Airport Obligations are issued and secured, and (b) one and ten-hundreths times Aggregate Debt Service for the Bond Year commencing during that Fiscal Year, reduced by any proceeds of Airport Obligations held by the Trustee for disbursement during that Bond Year to pay principal of and interest on Senior Lien Obligations. This requirement was met at December 31, 2015.
The Master Trust Indenture securing Chicago O'Hare International Airport Passenger Facility Charge (PFC) Obligations requires PFC Revenues, as defined, to be deposited into the PFC Revenue Fund. The City covenants to pay from the PFC Revenue Fund not later than the twentieth day of each calendar month the following amounts in the following order of priority: (1) to the Trustee for deposit in the Bond Fund, the sum required to make all of the Sub-Fund Deposits and Other Required Deposits to be disbursed from the Bond Fund [to meet debt service and debt service reserve requirements] in the calendar month pursuant to the Master Indenture; (2) to make any payments required for the calendar month with respect to Subordinated PFC Obligations; and (3) all moneys and securities remaining in the PFC Revenue Fund shall be transferred by the City (or the Trustee if it then holds the PFC Revenue Fund pursuant to the Master Indenture) to the PFC Capital Fund.
The Indenture of Trust Securing Chicago O'Hare International Airport Customer Facility Charge Senior Lien Revenue Bonds requires that, as long as any Bonds remain Outstanding, in each Fiscal Year, the City shall set the amount of the CFC (when multiplied by the total number of projected Contract Days) plus projected Facility Rent at an annual level sufficient to provide sufficient funds (1) to pay principal of and interest on the Bonds due in such Fiscal Year, (2) to reimburse the Rolling Coverage Fund, the
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YEAR ENDED DECEMBER 31, 2015
Supplemental Reserve Fund, the Debt Service Reserve Fund and any Subordinate Reserve Fund for any drawings upon such Funds over a period not to exceed twelve months, as determined by the City, (3) to provide funds necessary to pay any "yield reduction payments" or rebate amounts due to the United States under the Indenture for which funds in the Rebate Fund or the CFC Stabilization Fund are not otherwise available, (4) to maintain the balance of the CFC Stabilization Fund in an amount of no less than the CFC Stabilization Fund Minimum Requirement and to reimburse any drawings below the CFC Stabilization Fund Minimum Requirement over a period not to exceed twelve months, as determined by the City, and (5) to maintain the balance of the Operation and Maintenance Fund in an amount of no less than the Operation and Maintenance Fund Requirement and to reimburse any drawings below the Operation and Maintenance Fund Minimum Requirement over a period of not to exceed twelve months, as determined by the City.
No-Commitment Debt and Public Interest Loans include various special assessment, private activity bonds and loans. These types of financings are used to provide private entities with low-cost capital financing for construction and rehabilitation of facilities deemed to be in the public interest. Bonds payable on no-commitment debt are not included in the accompanying financial statements because the City has no obligation to provide for their repayment, which is the responsibility of the borrowing entities. In addition, federal programs/grants, including Community Development Block Grants and Community Service Block Grants, provide original funding for public interest loans. Loans receivable are not included as assets because payments received on loans are used to fund new loans or other program activities in the current year and are not available for general City operating purposes. Loans provided to third parties are recorded as current and prior year programs/grants expenditures. Funding for future loans will be from a combination of the repayment of existing loans and additional funds committed from future programs/grants expenditures.
Defeased Bonds have been removed from the Statement of Net Position because related assets have been placed in irrevocable trusts that, together with interest earned thereon, will provide amounts sufficient for payment of all principal and interest. Defeased bonds at December 31, 2015, not including principal payments due January 1, 2016, are as follows (dollars in thousands):
Amount
Defeased Outstanding
General Obligation Emergency Telephone System - Series 1993 $ 213,730 $ 92,965
Lakefront Millennium Project Parking Facilities Bonds - Series 1998 149,880 43,880
Special Transportation Revenue Bonds - Series 2001 118,715 86,665
Total $ 482,325 $ 223,510
11) Pension Funds and Other Postemployment Benefits a) Pension.
General Information about the Pension Plan
Plan description - Eligible City employees participate in one of four single-employer defined benefit pension plans (Plans). These Plans are: the Municipal Employees' Annuity and Benefit Fund of Chicago (Municipal Employees'); the Laborers' and Retirement. Board Employees' Annuity and Benefit Fund of Chicago (Laborers'); the Policemen's Annuity and Benefit Fund of Chicago (Policemen's); and the Firemen's Annuity and Benefit Fund of Chicago (Firemen's). Plans are administered by individual retirement boards of trustees comprised of City officials or their designees and of trustees elected by plan members. Certain employees of the Chicago Board of Education participate in Municipal Employees' or Laborers'. Each Plan issues a publicly available financial report that includes financial statements and required supplementary information that can be obtained at www.meabf.org , www.labfchicago.org , www.chipabf.org , and www.fabf.org .
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YEAR ENDED DECEMBER 31, 2015
Benefits provided - The Plans provide retirement, disability, and death benefits as established by State law. Benefits generally vest after 10 years of credited service. Employees qualify for an unreduced retirement age minimum formula annuity based on a combination of years of service and age of retirement. Employees may also receive a reduced retirement age minimum formula annuity if they do not meet the age and service requirements for the unreduced retirement age annuity. The requirement of age and service are different for employees who became members before January 1, 2011, and those who became members on or after January 1, 2011. The annuity is computed by multiplying the final average salary by a percentage ranging from 2.2 percent to 2.5 percent per year of credited service. The final average salary is the employee's highest average annual salary for any four consecutive years within the last 10 years of credited service for participants who became members before January 1, 2011 and any eight consecutive years within the last 10 years of credited service for participants who became members on or after January 1, 2011.
Benefit terms provide for annual adjustments to each employee's retirement allowance subsequent to the employees' retirement date. For participants who became members before January 1, 2011, the annual adjustments for Municipal Employees' and Laborers' are 3.0 percent, compounded, and for Firemen's and Policemen's 3.0 percent, simple, for annuitants born before 1955 and 1.5 percent, simple, born in 1955 or later. For participants that first became members on or after January 1, 2011, the annual adjustments are equal to the lesser of 3.0 percent and 50 percent of CPI-U of the original benefit.
Employees covered by benefit terms - At December 31, 2015, the following employees were covered by the benefit terms:
Municipal
Employees' Laborers' Policemen's Firemen's Total
Inactive employees or beneficiaries
currently receiving benefits 24,964 3,846 13,210 4,729 46,749
Inactive employees entitled
to but not yet receiving benefits 16,268 1,455 637 76 18,436
Active employees 30,683 2,816 12,061 4,735 50,295
71,915 8,117 25,908 9,540 115,480
Contributions - Historically State law required City contributions at statutorily, not actuarially, determined rates. State law also requires covered employees to contribute a percentage of their salaries. The City's contribution was calculated based on the total amount of contributions by employees to the Plan made in the calendar year two years prior, multiplied by 1.25 for the Municipal Employees', 1.00 for the Laborers', 2.00 for the Policemen's, and 2.26 for the Firemen's. The City's contributions are budgeted in the same year as the applicable levy year for the property taxes funding the contributions. The City's contributions are then paid to the pension funds in the following year (which is when the levied property taxes are collected and paid to the City by the Cook County Treasurer).
State law in effect at December 31, 2015 for the Policemen's and Firemen's Plans, known as Public Act 96-1495 (P.A. 96-1495), requires the City to significantly increase contributions to those Plans beginning in 2015. In each year, the City must contribute the amount needed for each Plan to achieve a 90% Funded Ratio by the end of 2040.
Public Act 99-0506 (P.A. 99-0506) was enacted on May 31, 2016. P.A. 99-0506 changed the funding requirements required by P.A 96-1495, providing that the City make a fixed contribution amount for 2015 through 2019 which is significantly larger than contributions made prior to the adoption of P.A. 96-1495 but smaller than the contributions required under P.A. 96-1495. P.A. 99-0506 requires that the City's contributions are at actuarially determined rates beginning in 2020 and future funding be sufficient to produce a funding level of 90% by the year ended December 31, 2055 (instead of 2040 required by P.A. 96-1495). As this law was enacted subsequent to December 31, 2015, the measurement of the City's net pension liability as of December 31, 2015, was not impacted since the liability was measured using the law in effect as of
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YEAR ENDED DECEMBER 31, 2015
December 31, 2015. The City will be taking into consideration the impact of this new law when measuring the liability in 2016. The new law is expected to increase the City's net pension liability.
The City's contributions to Municipal Employees' and Laborers' are determined pursuant to the formulas set forth in the Illinois Pension Code (the Pension Code). Pursuant to Public Act 98-0641 (P.A. 98-0641), the City's contributions to Municipal Employees' and Laborers' were scheduled to increase beginning in 2015; however, in July 2015 the Circuit Court of Cook County (Circuit Court) determined P.A. 98-0641 to be unconstitutional. As a result of such determination by the court, the provisions of the Pension Code governing the City's contributions to Municipal Employees' and Laborers' have reverted to the provisions in effect prior to the enactment of P.A. 98-0641. Furthermore, in March 2016, the Illinois Supreme Court upheld the ruling made by the Circuit Court.
Net Pension Liability
The City's net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The actuarial reports were provided by each of the pension funds.
Actuarial assumptions. The total pension liability in the December 31, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Municipal
Employees' Laborers' Policemen's Firemen's
Inflation 3.0% 3.0% 3.0% 2.5%
Salary Increases 4.5% - 8.25% (a) 3.75% (b) 3.75% (c) 3.75% (d)
Investment Rate of Return 7.5% (e) 7.5% (f) 7.5% 7.5%
Varying by years of service
Plus a service - based increase in the first 15 years
Plus additional percentage related to service
Plus additional service based increases
Net of investment expense
Net of investment expense, including inflation
Mortality rates were based on the RP-2000 Health Annuitant Mortality Table for Males or Females, as appropriate for Municipal Employees', Laborers', and Firemen's and RP-2014 for Policemen's.
The mortality actuarial assumptions used in the December 31, 2015 valuation were adjusted based on the results of actuarial experience study for the period:
Municipal Employees' - January 1, 2005 - December 31, 2009. Laborers' - January 1, 2004 - December 31, 2011 Policemen's - January 1, 2009 - December 31, 2013 Firemen's - January 1, 2003 - December 31, 2010
The long-term expected rate of return on pension plan investments was determined using the 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 by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Municipal
4.90% 5.90%
Asset Class: Employees' Laborers' Policemen's Firemen's Employees' Laborers' Policemen's Firemen's
24.0% 16.0%
7.50% 7.85%
Domestic equity 26.0% 22.0%
21.0% 20.0% .
6.10% 7.80%
Domestic large cap equity Domestic small cap equity .
7.90% 6.50%
U.S. equity
Non U.S. equity - 13.0%
25.0% 21.0%
7.50% 3.00%
5.00%
0.20% 3.00% 8.60%
Global equity - 14.0%
International equity 22.0%
22.0% 7.0% 9.0%
12.0% 5.0%
1.70% 4.00% 8.20%
5.10% 4.60%
2.60% 3.80%
6.90% 4.70% 4.40% 5.00%
Domestic Fixed income
Fixed income 27.0% 16.0%
3.0%
8.50%
Hedge funds 10.0% 8.0%
Private equity 5.0%
Private markets - 11.0%
6.00%
6.15%
5.25% 2.75%
2.25%
2.0%
2.0% 3.0%
4.0%
GAA - 8.0%
Real estate 10.0% 6.0%
Risk Parity - 2.0%
Alternative investments
Commodities
Cash deposits and
4.0%
4.20%
short-term investments
100.0% 100.0%
Real assets - -__
Total 100.0% 100.0%
Discount rate
Municipal Employees' - The discount rate used to measure the total pension liability was 3.73 percent. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.6 percent (based on the Bond Buyer 20- Bond Index of general obligation municipal bonds as of December 31, 2015). The projection of cash flows used to determine the discount rate assumed member contributions will be made at the current contribution rate and that employer contributions will be made at the 1.25 multiple of member contributions from two years prior. For this purpose, only employer contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Projected employer contributions and contributions from future plan members that are intended to fund the service costs of future plan members and their beneficiaries are not included. Based on those assumptions, the pension plan's fiduciary net position was not projected to be available to make all projected future benefit payments of current plan members. The projected benefit payments through 2023 were discounted at the expected long-term rate of return. Starting in 2024, the projected benefit payments were discounted at the municipal bond rate. Therefore, a single equivalent blended discount rate of 3.73 percent was calculated using the long-term expected rate of return and the municipal bond index.
Laborers' - A Single Discount Rate of 4.04 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.5 percent (based on the weekly rate closest to but not later than the measurement date of the "state & local bonds" rate from Federal Reserve statistical release (H.15)). The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between statutory contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position and future contributions were sufficient to finance the benefit payments through the year 2027. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2027, and the municipal bond rate was applied to all
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
benefit payments after that date.
Policemen's - A Single Discount Rate of 7.15 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.57 percent. The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between statutory contribution rates' and the member rate. Based on these assumptions, the pension plan's fiduciary net position and future contributions were sufficient to finance the benefit payments through the year 2063. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2063, and the municipal bond rate was applied to all benefit payments after that date.
Firemen's - A Single Discount Rate of 7.16 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.57 percent. The projection of cash flows used to determine this Single Discount Rate assumed that member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between statutory contribution rates and the member rate. Based on these assumptions, the Plan's fiduciary net position and future contributions were sufficient to finance future benefit payments only through the year 2061. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2061, and the municipal bond rate was applied to all benefit payments after that date.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Changes in the Net Pension Liability (dollars in thousands)
Municipal
Employees' Laborers' Policemen's Firemen's Total
Total pension liability
Service cost $ 226,816 $ 38,389 * $ 213,585 * $ 87,203 * $ 565,993
Interest 909,067 153,812 832,972 338,986 2,234,837
Benefit changes 2,140,009 384,033 - - 2,524,042
Differences between
expected and actual experience (109,835) (46,085) (105,969) (7,981) (269,870)
Assumption changes 8,711,755 1,175,935 - 176,282 10,063,972
Benefit payments including refunds (826,036) (152,530) (676,777) (278,017) (1,933,360)
Pension plan administrative expense - (3,844) (4,508) (3,149) (11,501)
Net change in total pension liability 11,051,776 1,549,710 259,303 313,324 13,174,113
Total pension liability:
Total pension liability - Beginning 12,307,094 2,162,905 11,773,430 4,512,760 30,756,189
Total pension liability - Ending (a) $ 23,358,870 $ 3,712,615 $ 12,032,733 $ 4,826,084 $ 43,930,302
Plan fiduciary net position
Contributions-employer $ 149,225 $ 12,412 $ 572,836 $ 236,104 $ 970,577
Contributions-employee 131,428 16,844 107,626 46,552 302,450
Net investment income (loss) ' 114,025 (22,318) (5,334) 7,596 93,969
Benefit payments including
refunds of employee contribution (826,036) (152,530) (676,777) (278,017) (1,933,360)
Administrative expenses (6,701) (3,844) (4,508) (3,149) (18,202)
Other : : 3,092|99|3,099
Net change in plan fiduciary net position (438,059) (149,436) (3,065) 9,093 (581,467)
Plan fiduciary net position - beginning 5,179,486 1,388,093 3,062,014 1,036,008 10,665,601
Plan fiduciary net position - ending (b) $ 4,741,427 $ 1,238,657 $ 3,058,949 $ 1,045,101 $ 10,084,134
Net pension liability-ending (a)-(b) $ 18,617,443 $ 2,473,958 $ 8,973,784 $ 3,780,983 $ 33,846,168
* Includes pension plan administrative expense
Changes in benefits and actuarial assumptions: As discussed above, PA. 98-0641 was determined to be unconstitutional resulting in changes in the discount rate caused by a change in the required funding policy and changes in benefits for the participants of the Municipal Employees' and Laborers' Pension plans, which include restoring full automatic annual increases and changes in the retirement age for certain participants.
The change in the discount rate assumption increased the net pension liability by $8.7 billion for Municipal Employees'and $1.2 billion for Laborers'. This impact is being amortized into expense over a five year period for Municipal Employees' and a four year period for Laborers'. The change in benefits increased the net pension liability by $2.1 billion for Municipal Employees' and $0.4 billion for Laborers'. This impact is recognized as a portion of pension expense for 2015 in its entirety.
Sensitivity of the net pension liability to changes in the discount rate
Municipal Employees' - The following presents the net pension liability as of December 31, 2015, calculated using the discount rate of 3.73 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.73 percent) or 1 percentage point higher (4.73 percent) than the current rate (dollars in thousands):
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Current
Net pension liability December 31, 2015 1% Decrease Discount Rate 1% Increase
Municipal Employees' discount rate 2.73% 3.73% 4.73%
Municipal Employees'liability $ 22,207,242 $ 18,617,443 $ 15,675,669
Laborers' - The following presents the net pension liability as of December 31, 2015, calculated using the discount rate of 4.04 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (3.04 percent) or 1 percentage point higher (5.04 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2015 1% Decrease Discount Rate 1% Increase
Laborers' discount rate 3.04% 4.04% 5.04%
Laborers' Employees' liability $ 3,017,416 $ 2,473,958 $ 2,028,467
Policemen's - The following presents the net pension liability as of December 31, 2015, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.15 percent) or 1 percentage point higher (8.15 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2015 1% Decrease Discount Rate 1% Increase
Policemen's Employees'discount rate 6.15% 7.15% 8.15%
Policemen's Employees'liability $ 10,402,348 $ 8,973,784 $ 7,771,127
Firemen's - The following presents the net pension liability as of December 31, 2015, calculated using the discount rate of 7.16 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.16 percent) or 1 percentage point higher (8.16 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2015 1% Decrease Discount Rate 1% Increase
Firemen's Employees'discount rate 6.16% 7.16% 8.16%
Firemen's Employees'liability $ 4,311,378 $ 3,780,983 $ 3,329,106
Pension plan fiduciary net position Detailed information about the pension plan's fiduciary net position is available in the separately issued Pension Plans reports.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended December 31, 2015, the City recognized pension expense of $6.4 billion. At December 31, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Inflows of Resources
$ 87,868
Municipal Employees' (dollars in thousands):
Deferred Outflows of Resources
$
6,969,404
198,509
$ 7,167,913
Differences between
expected and actual experience
Changes of assumptions
Net difference between projected and
$ 87,868
actual earnings on pension plan investments
Total
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (dollars in thousands):
Year ended December 31:
2016 $ 1,770,011
1,770,011
1,770,011
1,770,012
Thereafter
Total $7,080,045
Laborers' (dollars in thousands):
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between
expected and actual experience $ - $ 32,705
Changes of assumptions 834,530
Net difference between projected and
actual earnings on pension plan investments 97,396 -
Total $ 931,926 $ 32,705
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (dollars in thousands):
Year ended December 31:
2016 $ 352,374
352,374
170,123
24,350
2020
Thereafter
Total $ 899,221
Policemen's (dollars in thousands):
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between
expected and actual experience $ - $ 87,780
Changes of assumptions
Net difference between projected and
actual earnings on pension plan investments 188,055 -
Total $ 188,055 $ 87,780
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (dollars in thousands):
Year ended December 31:
2016 $ 28,825
28,825
28,825
28,825
(15,025)
Thereafter
Total $ 100,275
Firemen's (dollars in thousands):
Deferred Outflows Deferred Inflows of Resources of Resources
Differences between
expected and actual experience $ - $ 6,648
Changes of assumptions 146,851
Net difference between projected and
actual earnings on pension plan investments 60,275 -
Total $ 207,126 $ 6,648
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (dollars in thousands):
Year, ended December 31:
$ 43,168
43,168
43,168
43,168
2020 27,806
Thereafter
Total $ 200,478
Payable to the Pension Plan
At December 31, 2015, the City reported a payable of $802.3 million for the outstanding amount of contributions to the pension plan required for the year ended December 31, 2015.
b) Other Post Employment Benefits (OPEB) - Pension Funds
The Pension Funds also contribute a portion of the City's contribution as a subsidy toward the cost for each of their annuitants to participate in the City's health benefits plans, which include basic benefits for eligible annuitants and their dependents and supplemental benefits for Medicare eligible annuitants and their dependents. The amounts below represent the accrued liability of the City's pension plans related to their own annuitants and the subsidy paid to the City (see section c). The plan is financed on a pay-as-you-go basis.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Annual OPEB Cost and Contributions Made For Fiscal Year Ended December 31, 2015 (dollars in thousands)
Municipal
Employees' Laborers' Policemen's Firemen's Total
Contribution Rates City: A portion of the City's employer contribution to the Pension Funds is
used to finance the health insurance supplement benefit payments.
Annual Required Contribution $ . 9,174 $ 2,402 $ 9,632 $ 2,611 $23,819
Interest on Net OPEB Obligation.. 2,406 209 391 385 3,391
Adjustment to Annual -
Required Contribution (27,331) (2,376) (4,358) (4,375) (38,440)
Annual OPEB Cost (Gain) (15,751) 235 5,665 (1,379) (11,230)
Contributions Made 8,491 2,154 9,441 2,382 22,468
Decrease in
Net OPEB Obligation (24,242) (1,919) (3,776) (3,761) (33,698)
Net OPEB Obligation,
Beginning of Year 53,486 4,649 8,684 8,563 75,382
Net OPEB Obligation,
EndofYear $ 29,244 $ 2,730 $ 4,908 $ 4,802 $41,684
Actuarial Method and Assumptions - For the Pension Funds' subsidies, the actuarial valuation for the fiscal year ended December 31, 2015 was determined using the Entry Age Normal actuarial cost method. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan understood by the employer and plan members) and included the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial method and assumptions used include techniques that are designed to reduce the effects of short term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long term perspective of the calculations:
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Municipal
Employees' Laborers' Policemen's Firemen's
Actuarial Valuation Date 12/31/2015 12/31/2015 12/31/2015 12/31/2015
ActuarialCost Method Entry Age Entry Age Entry Age Entry Age
Normal Normal Normal Normal
Amortization Method Level Dollar, Level Dollar, Level Percent, Level Dollar,
Remaining
Amortization Method 1 year closed 1 year closed 1 year closed 1 year closed
Asset Valuation Method No Assets No Assets No Assets No Assets
(Pay-as-you-go) (Pay-as-you-go) (Pay-as-you-go) (Pay-as-you-go)
Actuarial assumptions: OPEB Investment
Rate of Return (a) 4.5% 4.5% 4.5% 4.5%
Projected Salary Increases (a) 3.0% 3.0% 3.0% 2.5%
Inflation
Seniority / Merit (b) (c) (d) (d)
Healthcare Cost Trend Rate (e) 0.0% 0.0% 0.0% 0.0%
(a) Compounded Annually
Service-based increases equivalent to a level annual rate of increase of 1.4 percent over a full career
Service-based increases equivalent to a level annual rate of increase of 1.9 percent over a full career (d ) Service-based increases equivalent to a level annual rate of increase of 1.8 percent over a full career (e) Trend not applicable - fixed dollar subsidy
OPEB COST SUMMARY (dollars in thousands)
Annual % of Annual Net
OPEB OPEB OPEB
Year Cost Obligation Obligation
Municipal Employees' 2013$ 13,389 71.01 % $ 75,637
(13,100) * - 53,486
(15,750) * - 29,244
Laborers' 2013 3,009 83 67 6,442
567 416.04 4,649
235 917 15 2,730
Policemen's 2013 10,536 93.46 12,150
6,191 155.99 8,684
5,665 166.65 4,908
Firemen's 2013 4,071 62.66 11,902
(868) - 8,563
(1,379) - 4,802
* The negative cost is pnmarily due to the insurance subsidy ending in 2016.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as the results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, unaudited supplementary information following the notes to the financial statements.
Schedule of Funding Progress ((dollars in thousands)
Municipal Employees'
Laborers'
Policemen's
Firemen's
Actuarial Valuation Date
12/31/2015 12/31/2015 12/31/2015 12/31/2015
Actuarial Value of Assets (a)
Unfunded
(Surplus) Funded
UAAL Ratio
(b-a) (a/b)
$ 8,147 $ 8,147
2,133 2,133
9,255 9,255
2,399 2,399
Covered Payroll (c)
1,643,481 204,773
1,086,608 465,232
Unfunded
(Surplus)
AAL as a Percentage of Covered
Payroll ((b-a)/c)
0.50 % 1.04 0.85 0.52
c) Other Post Employment Benefits - City Obligation
Up to June 30, 2013, the annuitants who retired prior to July 1, 2005 received a 55 percent subsidy from the City and the annuitants who retired on or after July 1, 2005 received a 50, 45, 40 and zero percent subsidy from the City based on the annuitant's length of actual employment with the City for the gross cost of retiree health care under a court approved settlement agreement, known as the-"Settlement Plan." The pension funds contributed their subsidies of $65 per month for each Medicare eligible annuitant and $95 per month for each Non-Medicare eligible annuitant to their gross cost. The annuitants contributed a total of $104.4 million in 2015 to the gross cost of their retiree health care pursuant to premium amounts set forth in the below-referenced settlement agreement.
The City of Chicago subsidized a portion of the cost (based upon service) for hospital and medical coverage for eligible retired employees and their dependents based upon a settlement agreement entered in 2003 and which expired on June 30, 2013.
On May 15, 2013, the City announced plans to, among other things: (i) provide a lifetime healthcare plan to former employees who retired before August 23, 1989 with a contribution from the City of up to 55 percent of the cost of that plan; and (ii) beginning July 1, 2013, provide employees who retired on or after August 23, 1989 with healthcare benefits in a new Retiree Health Plan (Health Plan), but with significant changes to the terms including increases in premiums and deductibles, reduced benefits and the phase-out of the Health Plan for such employees by December 31, 2016.
The cost of health benefits is recognized as an expenditure in the accompanying financial statements as claims are reported and are funded on a pay-as-you-go basis. In 2015, the net expense to the City for providing these benefits to approximately 22,697 annuitants plus their dependents was approximately $44.0 million.
Plan Description Summary - The City of Chicago was party to a written legal settlement agreement outlining the provisions of the Settlement Plans, which ended June 30, 2013. The Health Plan provides for annual modifications to the City's level of subsidy. It is set to phase out over three years, at which the Health Plan,
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NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
along with any further City subsidy, will expire by December 31, 2016, for all but the group of former employees (the Korshak class of members) who retired before August 23, 1989, who shall have lifetime benefits. Duty Disabled retirees who have statutory pre-63/65 coverage will continue to have fully subsidized coverage under the active health plan until age 65.
The provisions of the Health Plan provide in general, that the City pay a percentage of the cost (based upon an employee's service) for hospital and medical coverage to eligible retired employees and their dependents for the specified period, ending December 31, 2016. The percentage subsidies were revised to reduce by approximately 25 percent of 2013 subsidy levels in 2014, 50 percent of 2013 subsidy levels in 2015, and 75 percent of 2013 subsidy levels in 2016.
In addition, State law authorizes the four respective Pension Funds (Policemen's, Firemen's, Municipal Employees', and Laborers') to provide a fixed monthly dollar subsidy to each annuitant who has elected coverage under any City health plan through December 31, 2016. After that date, no Pension Fund subsidies are authorized. The liabilities for the monthly dollar Pension Fund subsidies contributed on behalf of annuitants enrolled in the medical plan by their respective Pension Funds are included in the NPO actuarial valuation reports of the respective four Pension Funds under GASB 43.
Special Benefits under the Collective Bargaining Agreements (CBA) - Under the terms of the collective bargaining agreements for the Fraternal Order of Police (FOP) and the International Association of Fire Fighters (IAFF), certain employees who retire after attaining age 55 with the required years of service are permitted to enroll themselves and their dependents in the healthcare benefit program offered to actively employed members. They may keep this coverage until they reach the age of Medicare eligibility. These retirees do not contribute towards the cost of coverage, but the Policemen's Fund contributes $95 per month towards coverage for police officers; the Firemen's Fund does not contribute.
Both of these agreements which provide pre-65 coverage originally expired at June 30, 2012. These benefits have been renegotiated to continue through 2016 or June 30, 2017, depending on bargaining unit agreements. This valuation assumes that the CBA special benefits, except for those who will have already retired as of December 31, 2016, will cease on December 31, 2016 or June 30, 2017, depending on bargaining unit agreements.
Funding Policy - No assets are accumulated or dedicated to funding the retiree health plan benefits.
Annual OPEB Cost and Net OPEB Obligation - The City's annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution "ARC" of the employer. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities over a period of ten years.
The following table shows the components of the City's annual OPEB costs for the year for the Health Plan and CBA Special Benefits, the amount actually contributed to the plan, and changes in the City's net OPEB obligation. The Net OPEB Obligation is the amount entered upon the City's Statement of Net Position as of year end as the net liability for the other post-employment benefits - the Health Plan. The amount of the annual cost that is recorded in the Statement of Changes in Net Position for 2015 is the annual OPEB cost (expense).
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Annual OPEB Cost and Contributions Made
(dollars in thousands)
Retiree CBA
Settlement Special
Health Plan Benefits Total
Contribution Rates:
City Pay-As-You-Go Pay-As-You-Go Pay-As-You-Go
Plan Members N/A N/A N/A
Annual Required Contribution $ 46,069 $ 60,654 $ 106,723
Interest on Net OPEB Obligation 867 4,459 5,326
Adjustment to Annual Required Contribution (3,291) (16,918) (20,209)
Annual OPEB Cost 43,645 48,195 91,840
Contributions Made 58,279 38,272 96,551
Decrease in Net OPEB Obligation (14,634) 9,923 (4,711)
Net OPEB Obligation, Beginning of Year 28,914 148,648 177,562
Net OPEB Obligation, End of Year $ 14,280 $ 158,571 $ 172,851
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2015 are as follows (dollars in thousands):
Schedule of Contributions, OPEB Costs and Net Obligations
Fiscal Year Ended
Settlement Plan
12/31/2015 12/31/2014 12/31/2013
CBA Special Benefits
12/31/2015 12/31/2014 12/31/2013
Total
12/31/2015 12/31/2014 12/31/2013
43,645 62,666 75,444
Annual Percentage of Annual OPEB Cost OPEB Cost Contributed
133.5%
149.9
79 4%
68.5
65.5
105.1%
1139
118.9
148.4
48,195 49,766 41,722
91,840 112,432 117,166
Net OPEB Obligation
$ 14,280 28,914 60,210
158,571 148,648 132,981
172,851 177,562 193,191
Funded Status and Funding Progress - As of January 1, 2015, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $780.6 million, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was approximately $2,488.0 million and the ratio of the unfunded actuarial accrued liability to the covered payroll was 31.4 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as the results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, (unaudited) supplementary information following the notes to the financial statements. '
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Schedule of Funding Progress (dollars in thousands)
Unfunded UAAL
Actuarial Actuarial Actuarial Actuarial as a
Valuation Value of Accrued Accrued Liability Funded Covered Percentage of
Date Assets Liability (AAL) (UAAL) Ratio Payroll Covered Payroll
Settlement Plan
12/31/2014 $ - $ 311,748 $ 311,748 0% $ 2,487,787 12.5 %
CBA Special Benefits
12/31/2014 $ - $ 468,889 $ 468,889 0% $ 1,438,428 32.6 %
Total
12/31/2014 $ ' - $ 780,637 $ 780,637 0% $ 2,487,787 31.4 %
Actuarial Method and Assumptions - Projections of benefits for financial reporting purposes are based on the substantive plan (the plan understood by the employer and plan members) and included the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial method and assumptions used include techniques that are designed to reduce the effects of short term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long term perspective of the calculations.
For the Health Plan benefits (not provided by the Pension Funds), the entry age normal actuarial cost method was used. The actuarial assumptions included an annual healthcare cost trend rate of 8.0 percent initially, reduced by decrements to an ultimate rate of 5.0 percent in 2026. The range of rates included a 3.0 percent inflation assumption. Rates included a 2.5 percent inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. However, the funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 3.0 percent. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over ten years. The benefits include the provisions under the new Health Plan, which will be completely phased-out by December 31, 2016, except for the Korshak category, which is entitled to lifetime benefits. Also included in the Non-CBA benefits are the duty disability benefits under the active health plan payable to age 63/65.
For the Special Benefits under the CBA for Police and Fire, the renewed contracts' expiration dates of June 30, 2016 (for Police Captains, Sergeants and Lieutenants) and June 30, 2017 for all other Police and Fire are reflected, such that liabilities are included only for payments beyond the end of the calendar year of contract expiration on behalf of early retirees already retired and in pay status as of December 31 of the expiration year of the contract. The entry age normal method was selected. The actuarial assumptions included an annual healthcare cost trend rate of 8.0 percent in 2014, reduced by decrements to an ultimate rate of 5.0 percent in 2026. Rates included a 2.5 percent inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. The funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 3.0 percent. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over ten years.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
Summary of Assumptions and Methods
Settlement Health Plan
Actuarial Valuation Date December 31,2014
Actuarial Cost Method Entry Age Normal
Amortization Method Level Dollar, open
Remaining Amortization Period 10 years
Asset Valuation Method Market Value
Actuarial Assumptions:
Investment Rate of Return 3.0%
Projected Salary Increases 2.5%
Healthcare Inflation Rate 8.0% initial to 5 0% in 2026
CBA Special Benefits
December 31,2014 Entry Age Normal Level Dollar, open 10 years Market Value
3 0% 2.5%
8.0% initial to 5.0% in 2026
12) 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; certain benefits for and injuries to employees, and natural disasters. The City provides worker's compensation benefits and employee health benefits under self-insurance programs except for insurance policies maintained for certain Enterprise Fund activities. The City uses various risk management techniques to finance these risks by retaining, transferring and controlling risks depending on the risk exposure.
Risks for O'Hare, Midway, and certain other major properties, along with various special events, losses from certain criminal acts committed by employees and public official bonds are transferred to commercial insurers. Claims have not exceeded the purchased insurance coverage in the past three years. Accordingly, no liability is reported for these claims. All other risks are retained by the City and are self-insured. The City pays claim settlements and judgments from the self-insured programs. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The General Fund is primarily used to record all non-Enterprise Fund claims. The estimated portion of non-Enterprise Fund claims not yet settled has been recorded in the Governmental Activities in the Statement of Net Position as claims payable along with amounts related to deferred compensatory time and estimated liabilities for questioned costs. As of December 31, 2015, the total amount of non-Enterprise Fund claims was $490.4 million and Enterprise Fund was $82.0 million. This liability is the City's best estimate based on available information. Changes in the reported liability for all funds are as follows (dollars in thousands):
2015
Balance, January 1 $ 540,272
Claims incurred and
change in estimates 688,800
Claims paid on current and
prior year events (656,712)
Balance, December 31 $ 572,360
$ 547,674
627,488
(634,890) $540,272
13) Expenditure of Funds and Appropriation of Fund Balances
The City expends funds by classification as they become available, and "Restricted" funds are expended first. If/when City Council formally sets aside or designates funds for a specific purpose, they are considered "Committed." The Mayor (or his/her designee) may in this capacity, also set aside or designate funds for specific purposes and all of these funds will be considered "Assigned." Any remaining funds, which are not specifically
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
allocated in one or more of the previous three categories, are considered "Unassigned" until such allocation is completed.
In addition to the categories above, any amounts which will be used to balance a subsequent year's budget will be considered "Assigned" as Budgetary Stabilization funds. The amounts may vary from fiscal year to fiscal year or depending on the City's budgetary condition, or may not be designated at all. The funds may be assigned by the Mayor or his designee, up to the amount of available "Unassigned" fund balance at the end of the previous fiscal year.
a) Fund Balance Classifications
On the fund financial statements, the Fund Balance consists of the following (dollars in thousands):
General
Nonspendable Purpose:
Inventory $ 23,828
Restricted Purpose
Capital Projects
Grants
Debt Service
General Government
Committed Purpose'
Budget and Credit Rating Stabilization ..
Repair, Maintenance and City Services Assigned Purpose
Future obligations 24,377
Special Projects 74,000
Unassigned 93,027
Total Government Fund Balance $ 215,232
Service Concession and Reserve
Special Taxing Areas
198,431
Community
Bond, Note Development Other
Redemption Improvement Governmental
and Interest Projects Funds
1,275,709
54,270
17,617
236,294
93,314 3,057
621,282
(233,759)
56,539
(1,555,260)
$ (216,142) $ 1,275,709 $ (933,978) $ 236,294 $ 198,431 S 207,180
At the end of the fiscal year, total encumbrances amounted to $24.4 million for the General Operating Fund, $47.6 million for the Special Taxing Areas Fund, $37.9 million for the Capital Projects Fund and $24.3 million for the Non Major Special Revenue Fund.
14) Deferred Outflows and Inflows of Resources
In accordance with Government Accounting Standards Board Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, the City reports deferred outflows of resources in the Statement of Net Position in a separate section following Assets. Similarly, the City reports deferred inflows of resources in the Statement of Net Position in a separate section following Liabilities.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
The components of the deferred outflows of resources and deferred inflows of resources are as follows (dollars in thousands):
FY 2015
Governmental Business-type
Activities Activities
Deferred Outflows of Resources:
Deferred outflows from pension activities ... $ 7,039,762 $ 1,455,260
Unamortized deferred
bond refunding costs 147,937 123,079
Derivatives ; 123,166
Total Deferred Outflows of Resources $ 7,187,699 $ 1,701,505
Deferred Inflows of Resources:
Deferred inflows from pension activities 187,878 27,123
Long-Term lease and
Service concession arrangements 1,555,260 1,626,667
Total Deferred Inflows of Resources $ 1,743,138 $ 1,653,790
The components of the deferred inflows of resources related to the governmental funds at December 31, 2015 are as follows (dollars in thousands):
Federal,
State and Service Bond, Note Other Total
Local Special Concession Redemption Governmental Governmental
Grants Taxing Areas and Reserve and Interest Funds Funds
Governmental Funds: Deferred inflow of resources:
Property Taxes $ - $ 350,404 $ - $ 436,939 $ 597,386 $ 1,384,729
Grants 239,199 ... . 239,199
Long-term Lease and
Concession Agreements - - 1,555,260 : : 1,555,260
Total Governmental Funds .. $ 239,199 $ 350,404 $ 1,555,260 $ 436,939 $ 597,386 $ 3,179,188
15) Commitments and Contingencies
The City is a defendant in various pending and threatened individual and class action litigation relating principally to claims arising from contracts, personal injury, property damage, police conduct, alleged discrimination, civil rights actions, and other matters. City management believes that the ultimate resolution of these matters will not have a material adverse effect on the financial position of the City.
The City participates in a number of federal- and state-assisted grant programs. These grants are subject to audits by or on behalf of the grantors to assure compliance with grant provisions. Based upon past experience and management's judgment, the City has made provisions in the General Fund for questioned costs and other amounts estimated to be disallowed. City management expects such provision to be adequate to cover actual amounts disallowed, if any.
As of December 31, 2015, the Enterprise Funds have entered into contracts for approximately $516.5 million for construction projects.
The City's pollution remediation obligation of $32.9 million is primarily related to Brownfield redevelopment projects. These projects include removal of underground storage tanks, cleanup of contaminated soil, and
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
removal of other environmental pollution identified at the individual sites. The estimated liability is calculated using the expected cash flow technique. The pollution remediation obligation is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations.
Concession Agreements
The major fund entitled Service Concession and Reserve Fund is used for the purpose of accounting for the deferred inflows associated with governmental fund long-term lease and concession transactions. Deferred inflows are amortized over the life of the related lease and concession agreements. Proceeds from these transactions may be transferred from this fund in accordance with ordinances approved by the City Council that define the use of proceeds.
In February 2009, the City completed a $1.15 billion concession agreement to allow a private operator to manage and collect revenues from the City's metered parking system for 75 years. The City received an upfront payment of $1.15 billion which was recognized as a deferred inflow that will be amortized and recognized as revenue over the term of the agreement. The City recognizes $15.3 million of revenue for each year through 2083.
In December 2006, the City completed a long-term concession and lease of the City's downtown underground public parking system. The concession granted Chicago Loop Parking, LLC (CLP) the right to operate the garages and collect parking and related revenues for the 99-year term of the agreement. The City received an upfront payment of $563.0 million of which $347.8 million was simultaneously used to purchase three of the underground garages from the Chicago Park District. The City recognized a deferred inflow that will be amortized and recognized as revenue over the term of the lease. The City recognizes $5.7 million of revenue for each year through 2105. In January 2014, CLP assigned all of its interests in the concession and lease agreement to LMG2, LLC, the designee of its lenders, in lieu of foreclosure by the lenders on their leasehold mortgage on the underground garages.
In January 2005, the City completed a long-term concession and lease of the Skyway. The concession granted a private company the right to operate the Skyway and to collect toll revenue from the Skyway for the 99-year term of the agreement. The City received an upfront payment of $1.83 billion; a portion of the payment ($446.3 million) advance refunded all of the outstanding Skyway bonds. The City recognized a deferred inflow of $1.83 billion that will be amortized and recognized as revenue over the 99-year term of the agreement. The City recognizes $18.5 million of revenue related to this transaction for each year through 2103. Skyway land, bridges, other facilities and equipment continue to be reported on the Statement of Net Position and will be depreciated, as applicable, over their useful lives. The deferred inflow of the Skyway is reported in the Proprietary Funds Statement of Net Position.
Restatement Due to Implementation of New Accounting Standards
During fiscal year 2015, the City implemented GASB Statement No. 68, "Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27', revised standards of accounting and reporting for pension expenses and liabilities as well as allowed for the deferral of certain pension expense elements. As a result of implementing this statement, net position was restated at January 1, 2015. The City's net pension obligation of $8.6 billion accounted for under GASB Statement No. 27 was eliminated and replaced by a larger net pension liability. The impact of these changes on the beginning balances reported in the financial statements is shown below (in thousands):
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
As Restated
As Originally GASB 68 after GASB 68 Reported Adjustment Impact
Governmental Activities:
Total Net (Deficit) Position, January 1,2015 $ (9,043,325) $ (10,131,849) $ (19,175,174)
Business-Type Activities: Water Fund
Total Net (Deficit) Position, January 1,2015 $ 1,683,206 $ (603,457) $ 1,079,749
Sewer Fund
Total Net (Deficit) Position, January 1,2015 734,754 (233,282) 501,472
Chicago Midway International Airport
Total Net (Deficit) Position, January 1,2015 (6,698) (159,615) (166,313)
Chicago O'Hare International Airport
Total Net (Deficit) Position, January 1,2015 1,460,084 (749,092) 710,992
Business-Type Activities (including Skyway):
Total Net (Deficit) Position, January 1,2015 $ 2,507,042 $ (1,745,446) $ 761,596
18) Subsequent Events Ratings
In January 2016, Standard and Poor's (S&P) upgraded the rating of the Midway Airport Second Lien revenue bonds from A- to A with a stable outlook.
In March 2016, Fitch Ratings (Fitch) downgraded the ratings of the City's General Obligation bonds and Sales Tax revenue bonds from BBB+ to BBB-, with a negative outlook.
In April 2016, Kroll Bond Rating Agency, Inc. (Kroll) downgraded the ratings of the City's General Obligation bonds from A- to BBB+ with a negative outlook.
In April 2016, S&P upgraded the City's Water Senior Lien revenue bonds from A to A+ and the Water Second Lien revenue bonds from A- to A, each with a stable outlook.
In May 2016, Fitch upgraded the rating of the Midway Airport Second Lien revenue bonds from A- to A with a stable outlook.
In May 2016, Fitch upgraded the rating of the O'Hare Airport Senior Lien revenue bonds from A- to A with a stable outlook.
In May 2016, Kroll rated the Midway Airport Second Lien revenue bonds A with a stable outlook.
In June 2016, S&P downgraded the rating of the Motor Fuel Tax revenue bonds from BBB+ to BBB with a negative outlook.
Bonds
In January 2016, the City redeemed $22.3 million of Chicago Senior Lien Tax Increment Allocation Bonds (Near North Redevelopment Project) Series, 1999A and the associated letter of credit was terminated.
In January 2016, the City sold General Obligation Refunding Bonds, Series 2015C ($500.0 million). The bonds were issued at an interest rate of 5.0 percent and mandatory sinking fund or maturity dates ranging from January 1, 2020 to January 1, 2038. Proceeds will be used to refund or pay interest on all or a portion of certain outstanding General Obligation bonds, fund capitalized interest, and pay costs of issuance.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
In May 2016, the City converted its Second Lien Water Revenue Bonds, Series 2000 ($100.0 million) and Second Lien Water Revenue Refunding Bonds, Series 2004 ($344.6 million) from variable rate to fixed rate. The bonds were converted at interest rates ranging from 2.0 percent to 5.0 percent and maturity dates from November 1, 2017 to January 1, 2030. Proceeds will be used to pay the purchase price of the bonds mandatorily tendered on the conversion date, costs of capital improvements to the Water System, and the costs of conversion. In addition, concurrently with the conversion of the Series 2000 and Series 2004 bonds, the City sold Second Lien Water Revenue Bonds, Series 2016A-1 (Tax Exempt) and Series 2016A-2 (Taxable) ($81.7 million). The Series 2016A-1 and A-2 bonds were issued at interest rates ranging from 1.68 percent to 5.0 percent and maturity dates from November 1, 2016 to November 1, 2031. Proceeds will be used to repay the outstanding water line of credit and to pay costs of issuance.
In June 2016, the City sold Midway Airport Second Lien Revenue and Revenue Refunding Bonds, Series 2016A (AMT) and 2016B (Non-AMT) ($342.4 million). The Series 2016A and 2016B bonds were issued at interest rates ranging from 2.0 percent to 5.0 percent and mandatory sinking fund or maturity dates from January 1, 2017 to January 1, 2046. Proceeds of the Series 2016A and 2016B Bonds will be used to pay the costs of various capital projects of the Airport, refund certain outstanding Midway Airport Second Lien revenue bonds, fund capitalized interest, fund debt service reserve deposits, and pay costs of issuance.
Swaps
In May 2016, the City terminated the swaps relating to its (1) Second Lien Water Revenue Bonds, Series 2000 for a termination payment of $32.3 million and (2) Second Lien Water Revenue Refunding Bonds, Series 2004 for total termination payments of $69.5 million.
Commercial Paper and Lines of Credit
As of December 31, 2015, the outstanding balance for the City's General Obligation Commercial Paper Notes and General Obligation Lines of Credit (G.O. CP) was $239.1 million. Since January 1, 2016, the City has issued $220.0 million of G.O. CP to fund pension requirements and has paid down $315.6 million, including the portion issued in 2016 to fund the pension requirement. The current G.O. CP outstanding is approximately $143.5 million.
In January 2016, the City increased the General Obligation Line of Credit Agreement to $900.0 million from $750.0 million. The City's repayment obligation under the line of credit is a general obligation of the City. The line of credit expires September 24, 2017.
In May 2016, the City drew $91.5 million under the water line of credit to fund the swap termination payments prior to the issuance of Second Lien Water Revenue Bonds, Series 2016A-1 (Tax Exempt) and Series 2016A-2 (Taxable). Proceeds from the bonds were used to repay the water line of credit.
Concession Agreements
In February 2016, the owners of the Skyway concessionaire sold their ownership interests in the concessionaire to a new entity. Pursuant to the concession and lease agreement for the Skyway, the City approved the transfer of ownership interests.
In May 2016, the concessionaire of the City's downtown underground public parking garages sold its concession interest in the garages to Millennium Parking Garages, LLC. Pursuant to the concession and lease agreement for the garages, the City approved the transfer of the concession interest.
100
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last Fiscal Year (dollars are in thousands)
Municipal Employees': 2015
Total pension liability
Service cost $ 226,816
Interest 909,067
Benefit changes 2,140,009
Differences between expected and actual experience (109,835)
Assumption changes 8,711,755
Benefit payments including refunds (826,036)
Pension plan administrative expense -
Net change in total pension liability $ 11,051,776
Total pension liability - beginning 12,307,094
Total pension liability - ending (a) $ 23,358,870
Plan fiduciary net position
Contributions-employer $ 149,225
Contributions-employee 131,428
Net investment income 114,025
Benefit payments including refunds of employee contribution (826,036)
Administrative expenses (6,701)
Other -
Net change in plan fiduciary net position $ (438,059)
Plan fiduciary net position - beginning 5,179,486
Plan fiduciary net position - ending (b) _$_ 4,741,427
Net pension liability - ending (a)-(b) $ 18,617,443
Plan fiduciary net position as a percentage of the total
pension liability 20.30 %
Covered-employee payroll* $ 1,643,481
Employer's net pension liability as a percentage of
covered-employee payroll 1,132.81 %
"Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year. Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
101
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - Continued Last Fiscal Year (dollars are in thousands)
Laborers': 2015
Total pension liability
Service cost $ 38,389 *
Interest 153,812
Benefit changes 384,033
Differences between expected and actual experience (46,085)
Assumption changes 1,175,935
Benefit payments including refunds (152,530)
Pension plan administrative expense (3,844)
Net change in total pension liability $ 1,549,710
Total pension liability - beginning 2,162,905
Total pension liability - ending (a) $ 3,712,615
Plan fiduciary net position
Contributions-employer $ 12,412
Contributions-employee 16,844
Net investment income (22,318)
Benefit payments including refunds of employee contribution (152,530)
Administrative expenses (3,844)
Other -
Net change in plan fiduciary net position $ (149,436)
Plan fiduciary net position - beginning 1,388,093
Plan fiduciary net position - ending (b) $ 1,238,657
Net pension liability - ending (a)-(b) $ 2,473,958
* Includes pension plan administrative expense
Plan fiduciary net position as a percentage of the total
pension liability 33.36 %
Covered-employee payroll ** $ 204,773
Employer's net pension liability as a percentage of
covered-employee payroll 1,208.15 %
" Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year. Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
102
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - Continued Last Fiscal Year (dollars are in thousands)
Policemen's: 2015
Total pension liability
Service cost $ 213,585 *
Interest 832,972
Benefit changes
Differences between expected and actual experience (105,969)
Assumption changes
Benefit payments including refunds (676,777)
Pension plan administrative expense (4,508)
Net change in total pension liability $ 259,303
Total pension liability - beginning 11,773,430
Total pension liability - ending (a) $ 12,032,733
Plan fiduciary net position
Contributions-employer $ 572,836
Contributions-employee 107,626
Net investment income (5,334)
Benefit payments including refunds of employee contribution (676,777)
Administrative expenses (4,508)
Other 3,092
Net change in plan fiduciary net position $ (3,065)
Plan fiduciary net position - beginning 3,062,014
Plan fiduciary net position - ending (b) _$_ 3,058,949
Net pension liability - ending (a)-(b) $ 8,973,784
* Includes pension plan administrative expense
Plan fiduciary net position as a percentage of the total
pension liability 25.42 %
Covered-employee payroll** $ 1,086,608
Employer's net pension liability as a percentage of
covered-employee payroll 825.85 %
** Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year. Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
103
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - Concluded Last Fiscal Year (dollars are in thousands)
Firemen's: 2015
Total pension liability
Service cost $ 87,203 *
Interest 338,986
Benefit changes
Differences between expected and actual experience (7,981)
Assumption changes 176,282
Benefit payments including refunds (278,017)
Pension plan administrative expense (3,149)
Net change in total pension liability $ 313,324
Total pension liability - beginning 4,512,760
Total pension liability - ending (a) $ 4,826,084
Plan fiduciary net position
Contributions-employer $ 236,104
Contributions-employee 46,552
Net investment income 7,596
Benefit payments including refunds of employee contribution (278,017)
Administrative expenses (3,149)
Other 7_
Net change in plan fiduciary net position $ 9,093
Plan fiduciary net position - beginning 1,036,008
Plan fiduciary net position - ending (b) $ 1,045,101
Net pension liability - ending (a)-(b) $ 3,780,983
* Includes pension plan administrative expense
Plan fiduciary net position as a percentage of the total
pension liability 21.66 %
Covered-employee payroll ** $ 465,232
Employer's net pension liability as a percentage of
covered-employee payroll 812.71 %
** Covered,payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year. Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
104
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CONTRIBUTIONS
Last Ten Years (dollars are in thousands)
Municipal Employees':
Years Ended December 31,
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Actuarially Determined Contributions* 5 325,914 343,123 360,387 413,509 483,948 611,756 690,823 820,023 839,039 677,200
Contributions in Relation to the Actuarially Determined Contribution
157,063 139,606 146,803 148,047 154,752 147,009 148,859 148,197 149,747 149,225
Contribution Deficiency
168,851 $
203,517
213,584
265,462
329,196
464,747
541,964
671,826
689,292
527,975
Covered Employee Payroll**
1,475,877 1,564,459 1,543,977 1,551,973 1,541,388 1,605,993 1,590,794 1,580,289 1,602,978 1,643,481
Contributions as a percentage of Covered Employee Payroll
10.64 8.92 9.51 9.54
10.04 9.15 9.36 9.38 9.34 9.08
* The funding method mandated by the Illinois Pension Code is insufficient to avoid insolvency, and without a change, the Fund is projected to become insolvent within the next 10 years (during 2025). Therefore, the actuarially determined contribution is comprised of an employer normal cost payment and a 30-year, level dollar amortization payment on the unfunded actuarial accrued liability.
Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
Laborers':
Years Ended December 31,
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Actuarially Determined Contributions * 21,142 21,726 17,652 33,518 46,665 57,259 77,566 106,199 106,019 79,851
Contributions in Relation to the Actuarially Determined Contribution
106 $ 13,256 15,233 14,627 15,352 12,779 11,853 11,583 12,161 12,412
Contribution Deficiency
21,036 8,470 2,419 18,891 31,313 44,480 65,713 94,616 93,858 67,439
Covered Employee Payroll **
193,176 192,847 216,744 208,626 199,863 195,238 198,790 200,352 202,673 204,773
Contributions as a percentage of Covered Employee Payroll
0.06 6.87 7.03 7.01 7.68 6.55 5.96 5.78 6.00 6.06
* The LABF Statutory Funding does not conform to Actuarial Standards of Practice, therefore, the actuarially determined contribution is equal to the normal cost plus an amount to amortize the unfunded liability using dollar payments and a 30 year open amortization period.
** Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
105
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS SCHEDULE OF CONTRIBUTIONS - Continued Last Ten Years (dollars are in thousands)
Policemen's:
Years Ended December 31,
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Actuarially Determined Contributions * 262,657 312,726 318,235 339,488 363,625 402,752 431,010 474,177 491,651 785,501
Contributions in Relation to the Actuarially Determined Contribution
150,718 170,598 172,836 172,044 174,501 174,035 197,885 179,521 178,158 575,928
Contribution Deficiency 111,939 142,128 145,399 167,444 189,124 228,717 233,125 294,656 313,493 209,573
Covered Employee Payroll **
1,012,984 1,038,957 1,023,581 1,011,205 1,048,084 1,034,404 1,015,171 1,015,426 1,074,333 1,086,608
Contributions as a percentage of Covered Employee Payroll
14.88 16.42 16.89 17.01 16.65 16.82 19.49 17.68 16.58 53.00
* The PABF Statutory Funding does not confrom to Actuarial Standards of Practice; therefore, the 2015 actuarially determined contribution is equal to the normal cost plus a 30-year closed level dollar amortization of the unfunded actuarial liability. Prior to 2015 the actuarially determined contribution was equal to the "ARC" which was equal to normal cost plus a 30-year open level percent amortization of the unfunded actuarial liability.
" Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
Firemen's:
Years Ended December 31,
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Actuarially Determined Contributions * 160,246 188,202 189,941 203,867 218,388 250,056 271,506 294,878
304,265 323,545
Contributions in Relation to the Actuarially Determined Contribution
76,763 72,023 81,258 89,212 80,947 82,870 81,522 103,669
107,334 236,104
Contribution Deficiency 83,483 116,179 108,683 114,655 137,441 167,186 189,984 191,209
196,931 87,441
Covered Employee Payroll **
387,442 389,125 396,182 400,912 400,404 425,385 418,965 416,492
460,190 465,232
Contributions as a percentage of Covered Employee Payroll
19.81 18.51 20.51 22.25 20.22 19.48 19.46 24.89 23.32 50.75
* The FABF Statutory Funding does not conform to Actuarial Standards of Practice, therefore, the actuarially determined contribution is equal to the normal cost plus an amount to amortize the unfunded liability using dollar payments and a 30 year open amortization period.
** Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
106
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CONTRIBUTIONS - Concluded
Actuarial Methods Municipal
and Assumptions: Employees' Laborers' Policemen's Firemen's
Actuarial valuation date 12/31/2015 (a) 12/31/2015 (b) 12/31/2015 12/31/2015
Actuarial cost method Entry age normal Entry age normal Entry age normal Entry age normal
Amortization method Level dollar, open Level dollar, open (c) Level percent, open Level dollar, open
Remaining amortization period 30 years 30 years 30 years 30 years
Asset valuation method 5-yr. Smoothed 5-yr. Smoothed 5-yr. Smoothed 5-yr. Smoothed
Market Market Market Market
Actuarial assumptions:
Inflation 3.0% 3.0% 3.0% 2.5%
Salary increases 4.5%-8.25% (d) 3.75% (e) 3.75% (f) 3.75% (f)
Investment rate of return 7.5% (g) 7.5% (h) 7.5% 7.5%
Retirement Age (i) (j) (k) (I)
Mortality (m) (n) (o) (p)
Other information (q) (r) (s) (s)
Actuarially determined contribution amount is determined as of December 31, with appropriate interest to the middle of the year.
Actuarially determined contribution rates are calculated as of December 31, which is 12 months prior to the end of the fiscal year in which contributions are reported.
(c) The statutory contributions are based on a multiple of member contributions from the second prior year. The statutory contribution multiple is 1.00
Varying by years of service.
Plus a service-based increase in the first 15 years.
Salary increase rates based on age-related productivity and merit rates plus inflation.
Net of investment expense.
Net of investment expense, including inflation
(0 • For employees first hired prior to January 1,2011, rates of retirement are based on the recent experience of the Fund (adopted December 31,2010)
For employees first hired on or after January 1, 2011, rates of retirement for each age from 62 to 80 were used (adopted Decemebr 31,2011). (j) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31, 2012, valuation pursuant to an
experience study of the period January 1, 2004, through December 31, 2011. (k) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31,2014, actuarial valuation
pursuant to an experience study of the period January 1, 2009, through December 31,2013. (I) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31, 2011, valuation pursuant to an
experience study of the period January 1, 2003, through December 31,2010. (m) Post-retirement mortality rates were based on the RP-2000 Healthy Mortality Tables with mortality improvements projected to 2010 using Scale AA.
Pre-retirement mortality rates were based on the post-retirement mortality assumption, multiplied by 85% for males and 70% for females, (n) RP2000 Combined Healthy mortality table, sex distinct, set forward one year for males and setback two years for females. No adjustment is made
for post-disabled mortality.
(o) Post-Retirement Healthy mortality rates. Sex distinct Retirement Plans 2014 Healthy Annuitant mortality table weighted 108% for males and 97% for females. Pre-Retirement mortality rates Sex distinct Retirement Plans 2014 Total Employee mortality table weighted 85% for males and 115% for females. Disabled Mortality: Sex distinct Retirement Plans 2014 Healthy Annuitant mortality table weighted 115% for males and 115% for females.
(p) RP2000 Combined Healthy mortality table, sex distinct for post retirement mortality. RP2000 Combined Healthy mortality table, sex distinct, set forward six years for post retirement mortality post-disabled mortality. Pre-retirement mortality is 80 percent of the post-retirement rates
(q) Other assumptions: Same as those used in the December 31, 2015, actuarial funding valuations.
(r) Notes Benefit changes based on the provisions in effect prior to Public Act 98-0641 were recognized in the Total Pension Liability as of December 31, 2015. (s) The valuation is based on the statutes in effect as of Decemebr 31, 2015, and does not consider the impact of PA 99-0506 which was passed on May 31, 2016
107
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS FUNDING PROGRESS Last Three Years (dollars are in thousands)
Actuarial Valuation Date
Municipal Employees'
12/31/2013
12/31/2014
12/31/2015
Laborers'
12/31/2013
12/31/2014
12/31/2015
Policemen's
2013 12/31/2013
2014 12/31/2014
2015 12/31/2015
Firemen's
12/31/2013
12/31/2014
12/31/2015
City of Chicago
12/31/2012
12/31/2013
12/31/2014
Actuarial
Value of Assets (a)
Actuarial Accrued Liability (AAL) Entry Age (b)
27,573 17,495 8,147
7,074 4,593 2,133
28,376 18,762 9,255
7,692 4,995 2,399
997,281 964,626 780,637
Unfunded Actuarial Accrued Liability (UAAL) (»a)
27,573 17,495 8,147
7,074 4,593 2,133
28,376 18,762 9,255
7,692 4,995 2,399
997,281 964,626 780,637
Funded Ratio (a/b)
Covered Payroll (c)
1,580,289 1,602,978 1,643,481
200,352 202,673 204,773
1,015,426 1,074,333 1,086,608
416,492 460,190 465,232
2,385,198 2,425,000 2,487,787
Unfunded (Surplus) AAL as a Percentage of Covered
Payroll ((b-a)/c)
%
1.74 1.09 0.50
%
3.53 2.27 1.04
%
2.79 1.75 0.85
%
1.85 1.09 0.52
41.81 %
39.78
31.38
108
COMBINING AND INDIVIDUAL FUND STATEMENTS GENERAL FUND
109
Schedule A-1
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
LOCAL TAX REVENUE UTILITY TAX:
Gas
Electric
Telecommunication
Commonwealth Edison
Cable Television
Total Utility Tax
SALES TAX:
Home Rule Retailers' Occupation TRANSPORTATION TAX:
Parking
Vehicle Fuel
Ground Transportation
Total Transportation Tax
TRANSACTION TAX:
Real Property
Personal Property Lease
Motor Vehicle Lessor
Total Transaction Tax
RECREATION TAX:
Amusement
Automatic Amusement
Liquor
Boat Mooring
Cigarette
Off Track Betting
Soft Drink
Total Recreation Tax
BUSINESS TAX:
Hotel
Foreign Fire Insurance
Total Business Tax
TOTAL LOCAL TAX REVENUE .
126,567 97,313
109,755 90,240 27,965
451,840
308,300
129,933 48,857 9,234
188,024
158,561 161,467 6,404
326,432
126,535 604 32,290 1,297 21,690 576 22,034
205,026
106,304 4,644
110,948
1,590,570
126,567 97,313
109,755 90,240 27,965
451,840
308,300
129,933 48,857 9,234
188,024
158,561 161,467 6,404
326,432
126,535 604 32,290 1,297 21,690 576 22,034
205,026
106,304 4,644
110,948
1,590,570
119,705 95,215
105,514 87,578 29,768
437,780
308,878
131,489 49,332 17,056
197,877
191,148 192,504 6,656
390,308
145,675 544 33,651 1,386 22,832 512 22,910
227,510
109,784 5,983
115,767
1,678,120
(6,862) (2,098) (4,241) (2,662) 1,803 (14,060)
578
1,556 475 7,822
9,853
32,587 31,037 252
63,876
19,140 (60) 1,361 89 1,142 (64) 876
22,484
3,480 1,339
4,819
87,550
110
Schedule A-1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
INTERGOVERNMENTAL REVENUE
STATE INCOME TAX: ¦
Income $ 260,800
Personal Property Replacement 159,219
Total State Income Tax 420,019
STATE SALES TAX:
State Retailers' Occupation 339,624
STATE AUTO RENTAL TAX:
Municipal Auto Rental 4,101
FEDERAL/STATE GRANTS:
Grants 1,600
TOTAL INTERGOVERNMENTAL REVENUE 765,344
LOCAL NON-TAX REVENUE
INTERNAL SERVICE:
Water Fund 71,014
Chicago-O'Hare International Airport Fund 24,639
Vehicle Tax Fund 28,347
Chicago Midway International Airport Fund 7,778
Federal Funds 21,225
Sewer Fund 36,867
Emergency Communication Fund 108,174
Federal Funds - Pensions 27,795
Intergovernmental Vouchers (IV) 9,588
Department of Housing & Economic Development. 125
Transportation 4,001
Department of Fleet and Facility Management 8,190
¦ Miscellaneous - Planning, Purchasing, etc 3,354
Public Safety - Police, Fire and OEMC 619
Other 1,610
Total Internal Service 353,326
LICENSES AND PERMITS:
Alcoholic Liquor Dealers' License 12,323
Business License 19,162
Building Permits 50,170
Fines and Penalties 8,960
Other 46,300
Total Licenses and Permits 136,915
$ 260,800 159,219
420,019
339,624
4,101
1,600
765,344
71,014 24,639 28,347 7,778 21,225 36,867 108,174 27,795 9,588 125 4,001 , 8,190 3,354 619 1,610
353,326
12,323 19,162 50,520 8,960 46,308
137,273
336,959
$ 286,473 $ 25,673
50,486 (108,733)
356,915
(83,060)
4,196
17,291
245
95
(65,429)
1,845
(1,803) (567)
(867) 2,204 .
1,462 (9,212) (1,340) (125) 2,710 (2,774) 1,800 806 (194)
699,915
69,211 24,072 28,347
6,911 23,429 36,867 109,636 18,583
8,248
(7,900)
6,711 5,416 5,154 1,425 1,416
12,504 19,413 43,660 6,175 44,975
345,426
126,727
181 251 (6,860) (2,785) (1,333)
(10,546)
111
Schedule A-1 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
LOCAL NON-TAX REVENUE - Concluded FINES:
Fines, Forfeitures and Penalties $ 369,500
INVESTMENT INCOME:
Interest on Investments 2,000
CHARGES FOR SERVICES:
Inspection 13,981
Information 605
Safety 80,160
Reimbursement of Current Expense 10,326
Other 27,232
Total Charges for Services 132,304
MUNICIPAL UTILITIES:
Parking 6,420
Total Municipal Utilities 6,420
LEASES, RENTALS AND SALES:
Sale of Land and Buildings 13,830
Vacation of Streets and Alleys 1,000
Sale of Impounded Autos 37
Sale of Materials 1,500
Rentals and Leases 13,800
Total Leases, Rentals and Sales 30,167
MISCELLANEOUS:
Property Damage |910|Other 115,059
Total Miscellaneous 115,066
TOTAL LOCAL NON-TAX REVENUE 1,145,698
Transfers In 32,808
Total Revenues $ 3,534,420
2,000
13,631 605 80,160 10,326 27,224
14,960 714 61,476 13,009 29,439
366,309 $ (3,191)
911 (1,089)
131,946
119,598
1,329 109 (18,684) 2,683 2,215
6,420
6,511
(12,348)
6,420
6,511
91
13,830 1,000 37 1,500
13,800
3,498 6,541 20 1,449 13,981
91
25,489
30,167
(10,332) 5,541 (17) (51) 181
151 97,478|1010|115,059
(4,678)
97,629
115,066
144 (17,581)
1,145,698
1,088,600
(17,437)
33,071
53,851
(57,098)
20,780
$ 3,534,683 $ 3,520,486 $ (14,197)
112
NONMAJOR GOVERNMENTAL FUNDS
113
Schedule B-1
CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2015
(Amounts are in Thousands of Dollars)
Total Nonmajor Special Revenue
Funds
1,861 39,129 257
651,723 18,284 95,711 18,743
ASSETS
Cash and Cash Equivalents $
Investments
Cash and Investments with Escrow Agent
Receivables (Net of Allowances):
Property Tax
Accounts
Due from Other Funds
825,708 $ 115,161 $ 84,068 $ 1,024,937
Due from Other Governments
Total Assets $
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 33,918 $ - $ 10,620 $ 44,538
Bonds, Notes and Other Obligations Payable - Current ... - 4,700 - 4,700
Accrued Interest - 1,242 - 1,242
Due to Other Funds 145,207 - 18,937 164,144
Accrued and Other Liabilities 5,335 171 241 5,747
Total Liabilities 184,460 6,113 29,798 220,371
Deferred Inflows 581,652 15,734 - 597,386
Fund Balance:
Restricted 3,057 93,314 54,270 150,641
Committed 56,539 - : 56,539
Total Fund Balance 59,596 93,314 54,270 207,180
Total Liabilities, Deferred Inflows and Fund Balance $ 825,708 $ 115,161 $ 84,068 $ 1,024,937
114
Schedule B-2
CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Total Nonmajor
Special Revenue
Funds
REVENUES
Property Tax $ 360,132
Utility Tax 102,593
Transportation Tax 175,364
State Income Tax 119,438
Transaction Tax 76,124
Other Taxes 21,920
Internal Service 37,332
Fines 20,851
Investment Income 2,260
Charges for Services 21,813
Miscellaneous 23,060
Total Revenues 960,887
371,867 40 6,832 49,401 87,714 81,791 479,581 771
EXPENDITURES Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Cultural and Recreational
Employee Pensions
Other
Capital Outlay
Debt Service:
71
Principal Retirement
1,078,068
Interest and Other Fiscal Charges
Total Expenditures
Revenues Over (Under) Expenditures (117,181)
Debt Service
Fund Special Taxing Areas
$ 33,243 $
23 922
34,188
37,070 24,089
61,159
(26,971)
Total Nonmajor Capital Project Funds
524
1,611
2,135
52,496
52,496
(50,361)
Total Nonmajor Governmental Funds
393,375 102,593 175,364 119,438 76,124 21,920 37,332 20,851 2,807 21,813 25,593 997,210
371,867 40 6,832 49,401 87,714 81,791 479,581 771 52,496
37,070 24,160 1,191,723
(194,513)
Continued on following page.
Schedule B-2 - Concluded CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Total Nonmajor
Special Revenue
Funds
OTHER FINANCING SOURCES (USES)
Issuance of Line of Credit $ 75,994
Transfers In 25,625
Transfers Out (3,075)
Total Other Financing Sources (Uses) 98,544
Debt Service
Fund Special Taxing Areas
49,984 (8,577)
41,407
Total Nonmajor Capital Project Funds
67,393 (20,318)
47,075
Total Nonmajor Governmental Funds
75,994 143,002 (31,970)
187,026
Net Change in Fund Balances (18,637) 14,436 (3,286) (7,487)
Fund Balance - Beginning of Year 78,233 78,878 57,556 214,667
Fund Balance-End of Year $ 59,596 $ 93,314 $ 54,270 $ 207,180
116
NONMAJOR SPECIAL REVENUE FUNDS
Vehicle Tax Fund - Expenditures made in accordance with the policy established by the City Council in connection with street repairs and maintenance, as provided by sale of vehicle licenses.
Motor Fuel Tax and Project Fund - Expenditures for repair and maintenance of streets and pavements as provided by the City's distributive share of State Motor Fuel Tax and Motor Fuel Tax Revenue Bonds.
Pension Fund - For the City's contribution to Employees' Annuity and Benefit Funds as provided by tax levy and State Personal Property Replacement Tax revenue.
Public Building Commission Fund - For rentals of space and long-term lease obligations by the City as provided by tax levy.
Miscellaneous Fund - Expenditures for environmental management purposes related to liquid waste, inspection, operation of emergency communication system and other obligations, as provided by revenues from fees collected for disposal of liquid waste, by fees on telephone billings and transfers in.
Chicago Public Library Fund - Expenditures for acquisition, repairs, construction and equipment of library buildings; also library maintenance and operations as provided by proceeds of debt, fines and miscellaneous revenues.
Special Events, Tourism and Festivals Fund - Expenditures for promoting tourism, conventions and other special events projects in Chicago as provided by the State from Municipal Hotel-Motel Tax receipts and by proceeds from Jazz, Blues and Gospel Festivals and Taste of Chicago.
Health and Welfare Fund - For general assistance to be expended and administered by the Illinois Department of Public Aid as provided by patient fees, City and State grants and proceeds of debt, and for neighborhood human infrastructure projects designed to improve the quality of life for citizens.
117
Schedule C-1
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2015
(Amounts are in Thousands of Dollars)
ASSETS
Cash and Cash Equivalents $
Investments
Cash and Investments with Escrow Agent
Receivables (Net of Allowances):
Property Tax
Accounts
Due from Other Funds
Due from Other Governments
Total Assets _$_
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $
Due to Other Funds
Accrued and Other Liabilities
Total Liabilities
Deferred Inflows
Fund Balance (Deficit):
Restricted
Committed
Total Fund Balance (Deficit)
Total Liabilities and Fund Balance $
Vehicle Tax
32 6,435
858 55,956
63,281
10,150 34,813 3,549
48,512
14,769
14,769
63,281
Motor Fuel Tax
Pension
and Project
56
3,692 257
651,723
15,101
1,594 257 9,301
5,220 5,799 122
$ 651,779
11,141
190 69,937
70,127
581,652
3,960
3,960
$ 15,101 $ 651,779
118
Public Chicago Building Public Commission Miscellaneous Library
Special Total
Events, Nonmajor
Tourism Health Special
and and Revenue
Festivals Welfare Funds
$ - $ 621 $
26,097
11,792 2,657 14,827 19,690
3,633 _ -_
$ 3,633 $ 53,337 $ 22,347
$ 919 $ 289 $ 1,861
1,720 1,129 39,129
257
651,723
1,231 152 18,284
1,981 3,000 95,711
5,809 - 18,743
$ 11,660 $ 4,570 $ 825,708
$ - $ 11,281 $ 4,060
30 23,688 9,303
37_ 1,376
30 35,006 14,739
$ 3,017 $ - $ 33,918
1,637 - 145,207
251_ 5,335
4,905 - 184,460
581,652
3,057
3,603 15,274 7,608
3,603 18,331 7,608
3,057
6,755 4,570 56,539
6,755 4,570 59,596
$ 11,660 $ 4,570 $ 825,708
119
Schedule C-2
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Motor
Fuel Tax
Vehicle and
Tax Project Pension
Revenues:
Property Tax $ - $ - $ 360,132
Utility Tax
Transportation Tax 119,836 53,660
State Income Tax - - 119,438
Transaction Tax
Other Taxes
Internal Service 36,569 763
Fines 18,107
Investment Income 39 110 11
Charges for Services 7,523 611
Miscellaneous 91 396
Total Revenues 182,165 55,540 479,581
Expenditures: Current:
General Government 85,086 44,770
Health
Public Safety 245
Streets and Sanitation 37,988 11,413
Transportation 72,968 14,746
Cultural and Recreational
Employee Pensions - - 479,581
Other
Debt Service:
Interest and Other Fiscal Charges - 10 -
Total Expenditures 196,287 70,939 479,581
Revenues Over (Under) Expenditures (14,122) (15,399) -
Other Financing Sources (Uses):
Issuance of Line of Credit
Transfers In 625
Transfers Out (33)
Total Other Financing Sources (Uses) 592
Net Change in Fund Balances (13,530) (15,399)
Fund Balance (Deficit) - Beginning of Year 28,299 19,359
Fund Balance (Deficit) - End of Year $ 14,769 $ 3,960
120
Special Total
Events, Nonmajor
Public Chicago Tourism Health Special
Building Public and and Revenue
Commission Miscellaneous Library Festivals Welfare Funds
$ $ - $ $ - $ - $ 360,132
102,593 - - - 102,593
1,868 - 175,364
119,438
76,124 - - - 76,124
21,920 - 21,920
37,332
919 1,825 - - 20,851
2,080|999|16 2,260
1,291 94 12,294 - 21,813
2,703 8,732 350 6,548 4,240 23,060
2,703 191,739 2,272 42,631 4,256 960,887
3,249 195,809 34,066 8,427 460 371,867
40 40
6,382 - 205 - 6,832
49,401 87,714
51,375 30,416 - 81,791
479,581
771 - 771
- - 61_ - - 71_
3,249 202,231 85,502 39,819 460 1,078,068
(546) (10,492) (83,230) 2,812 3,796 (117,181)
75,994 - - 75,994
18,500 6,500 - - 25,625
(37)_ (3,005) (3,075)
18,500 82,457 (3,005) - 98,544
(546) 8,008 (773) (193) 3,796 (18,637)
4,149 10,323 8,381 6,948 774 78,233
$ 3,603 $ 18,331 $ 7,608 $ 6,755 $ 4,570 $ 59,596
121
Schedule C-3
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS
COMBINING SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Transaction and Property Tax
FUND
Final Budgeted Revenues:
Vehicle Tax $
Motor Fuel Tax and Project
Pension 650,100
Miscellaneous 63,424
Chicago Public Library
Special Events, Tourism and Festivals
Health and Welfare
Special Taxing Areas -
Total Original and Final Budgeted Revenues .. 713,524
Actual Revenues:
Vehicle Tax
Motor Fuel Tax and Project
Pension 652,375
Public Building Commission
Miscellaneous 76,124
Chicago Public Library
Special Events, Tourism and Festivals
Health and Welfare
Special Taxing Areas 405,476
Total Actual Revenues 1,133,975
Variance Positive (Negative) $ 420,451
Special Area and Utility Taxes
100,619
100,619
102,593
102,593
$ 1,974
State Taxes
Transportation Tax
$ 10,000
22,671
32,671
$ 109,000 48,257
157,257
119,836 53,660
1,868
119,438
175,364
21,920
141,358
$ 18,107 $ 108,687
122
Budgeted
Leases, Prior Years' Total
Rentals, Surplus and Nonmajor
Sales and Operating Special
Internal Investment Charges for Miscel- Proceeds Transfers In/ Revenue
Service Fines Income Services laneous of Debt Other Funds
$ 32,264 $ 9,200 $ - $ 13,859 $ $ - $ 30,798 $ 205,121
32,071 80,328
208,532 .... 858,632
26,000 - 7,655 197,698
1,600 11 350 130 75,994 13,567 91,652
12,445 6,500 1,952 43,568
2,200 - 74 2,274
- - - - 10,150 - - 10,150
240,796 10,800 11 14,209 50,925 82,494 86,117 1,489,423
36,569 18,107 39 7,523 91 - 625 182,790
763 - 110 611 396 - - 55,540
11 - - - - 771,824
2,703 - - 2,703
919 2,080 1,291 8,732 - 18,500 210,239
1,825 3 94. 350 75,994 6,500 84,766|109|12,294 6,548 - - 42,631
16 - 4,240 - - 4,256
- - 3,235 |99|1,699 - 6,632 417,047
37,332 20,851 5,495 21,818 24,759 75,994 32,257 1,771,796
$ (203,464) $ 10,051 $ 5,484 $ 7,609 $ (26,166) $ (6,500) $ (53,860) $ 282,373
123
Schedule C-4
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS
COMBINING SCHEDULE OF EXPENDITURES AND ENCUMBRANCES -BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Streets
General Public and
Government Health Safety Sanitation
FUND
Original and Final Budget:
Vehicle Tax $ 89,504 $ - $ - $ 38,730
Motor Fuel Tax and Project 46,225 - - 17,130
Pension 885,719
Miscellaneous 183,913 - 13,785
Chicago Public Library 37,467
Special Events, Tourism and Festivals 13,194 - 205
Health and Welfare 2,274
Special Taxing Area 10,150 -__ -
Total Original and Final Budget 1,268,446 - 13,990 55,860
Actual Expenditures and Encumbrances:
Vehicle Tax 85,460 .- - 38,292
Motor Fuel Tax and Project 41,799 - - 18,248
Pension 479,581
Miscellaneous 194,042 - 6,172
Chicago Public Library 33,303
Special Events, Tourism and Festivals 12,043 - 205
Health and Welfare 460 -_ -_ -
Total Actual Expenditures and Encumbrances ... 846,688 -_ 6,377 56,540
Variance Positive (Negative) $ 421,758 $ - $ 7,613 $ (680)
Note: 1) Original and Final Budgets are the same for all funds except Library and Pension.
There was a $97 thousand increase in General Government expenditures in the Library. 2) Pension funds increased by $328.6 million in General Government.
124
Transportation
Cultural and Recreational
Employee Pensions
Operating Transfers Out
Interest and Other
Fiscal Charges
Total Nonmajor Special Revenue
Funds
$ 76,887 16,973
54,185 30,169
205,121 80,328 885,719 197,698 91,652 43,568 2,274 10,150
1,516,510
72,089 15,722
87,811
52,987 29,600
82,587
195,841 75,769 479,581 200,214 86,290 41,848 460
1,080,003
$ 6,049 $ 1,767 $ - $ - $ - $ 436,507
125
NONMAJOR CAPITAL PROJECT FUNDS
Highway and Transportation Projects - Proceeds of debt used to improve highways and transportation systems.
Building Projects - Proceeds of debt used to finance exterior and interior construction and mechanical work on buildings used by City departments and the public.
Equipment Projects - Proceeds of debt used to purchase capital assets and maintain equipment and machinery for various City departments.
Chicago Public Building Commission - Accounts for assets held by Public Building Commission as trustee or agent during the interim financing period of certain City projects.
126
Schedule D-1
CITY OF CHICAGO, ILLINOIS NONMAJOR CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2015
(Amounts are in Thousands of Dollars)
Total
Highway Chicago Nonmajor
and Public Capital
Transportation Building Equipment Building Project
Projects Projects Projects Commission Funds
ASSETS
Cash and Cash Equivalents $ 17 $ - $ 22,510 $ - $ 22,527
Investments 5 40 42,943 - 42,988
Accounts Receivable (Net of Allowances) - - 194 - 194
Due from Other Funds - - 322 - 322
Due from Other Governments -_ -_ -_ 18,037 18,037
Total Assets $ 22 $ 40 $ 65,969 $ 18,037 $ 84,068
LIABILITIES AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 123 $ - $ 10,497 $ - $ 10,620
Due to Other Funds - 643 257 18,037 18,937
Accrued and Other Liabilities -__ -_ 241 -__ 241
Total Liabilities 123 643 10,995 18,037 29,798
Fund Balance:
Restricted (101) (603) 54,974 -_ 54,270
' Total Fund Balance (101) (603) 54,974 - 54,270
Total Liabilities and Fund Balance $ 22 $ 40 $ 65,969 $ 18,037 $ 84,068
127
Schedule D-2
CITY OF CHICAGO, ILLINOIS NONMAJOR CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Highway and
Transportation Projects
REVENUES
Investment Income $
Miscellaneous -
Total Revenues
Building Projects
Equipment Projects
524 1,611
2,135
Chicago Public Building Commission
$
Total Nonmajor Capital Project Funds
524 1,611 2,135
EXPENDITURES
Capital Outlay -_ - 52,496 -_ 52,496
Total Expenditures -_ -_ 52,496 -_ 52,496
Revenues Over (Under) Expenditures -_ -_ (50,361) -_ (50,361)
OTHER FINANCING SOURCES (USES)
Transfers In - - 67,393 - 67,393
Transfers Out -_ - (20,318) - , (20,318)
Total Other Financing Sources (Uses) ... - - 47,075 - 47,075
Net Change in Fund Balance - - (3,286) - (3,286)
Fund Balance - Beginning of Year (101) (603) 58,260 -_ 57,556
Fund Balance - End of Year $ (101) $ (603) $ 54,974 $ - $ 54,270
128
FIDUCIARY FUNDS
AGENCY FUNDS - Account for transactions for assets held by the City as agent for various entities.
PENSION TRUST FUNDS - Expenditures for employee pensions as provided by employee and employer contributions and investment earnings.
129
Schedule E-1
CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2015
(Amounts are in Thousands of Dollars)
License and
Payroll Payroll Other Special Special
Clearing Deduction Clearing Deposit Assessment
ASSETS: Cash,
January 1,2015 $ 436 $ 10,162 $ 22,937 $ 17,677 $ 1,990 $ 53,202
Additions 3,738,114 7,238 731,930 113,915 2,190 4,593,387
Deductions 3,732,196 17,094 553,287 91,728 3,419 4,397,724
Cash,
December 31,2015 6,354 306 201,580 39,864 761 248,865
Investments,
January 1,2015 35,883 7,238 49,128 15,048 2,150 109,447
Additions - 94 6,469,799 12,266 10,933 6,493,092
Deductions 35,883 7,238 6,468,854 15,048 9,694 6,536,717
Investments,
December 31,2015 - 94 50,073 12,266 3,389. 65,822
Cash and Investments with Escrow Agent,
January 1,2015 - - 6,315 122 - 6,437
Additions - - 93,054 - - 93,054
Deductions - - 94,279 - - 94,279
Cash and Investments with Escrow Agent,
December 31, 2015 - - 5,090 122 - 5,212
Accounts Receivables,
January 1,2015 1 3^846 138,255 62,638 1,034 205,774
Additions - - 312,640 31,059 . 18 343,717
Deductions |99|- 297,650 92,115 12 389,778
Accounts Receivables,
December 31,2015 - 3,846 153,245 1,582 1,040 159,713
130
Schedule E-1 - Concluded CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2015
(Amounts are in Thousands of Dollars)
License and
Payroll Payroll Other Special Special
Clearing Deduction Clearing Deposit Assessment
Fund Fund Fund Fund Fund Total
ASSETS - Concluded: Total Assets,
January 1,2015 $ 36,320 $ 21,246 $ 216,635 $ 95,485 $ 5,174 $ 374,860
Additions 3,738,114 7,332 7,607,423 157,240 13,141 11,523,250
Deductions 3,768,080 24,332 7,414,070 198,891 13,125 11,418,498
Total Assets,
December 31,2015 $ 6,354 $ 4,246 $ 409,988 $ 53,834 $ 5,190 $ 479,612
LIABILITIES:
Voucher Warrants Payable,
January 1,2015 $ 13,462 $ 34 $ 22,136 $ 1,898 $ 4 $ 37,534
Additions 8,368,791 - 353,446 6,567 8 8,728,812
Deductions 8,382,253 - 346,313 6,088 8 8,734,662
Voucher Warrants Payable,
December 31, 2015 -__ 34 29,269 2,377 4 31,684
Accrued Liabilities,
January 1,2015 22,858 21,212 194,499 93,587 5,170 337,326
Additions 1,289,095 - 533,571 8,257 29 1,830,952
Deductions 1,305,599 17,000 347,351 50,387 13 1,720,350
Accrued Liabilities,
December 31,2015 6,354 4,212 380,719 51,457 5,186 447,928
Total Liabilities,
January 1,2015 36,320 21,246 216,635 95,485 5,174 374,860
Additions 9,657,886 - 887,017 14,824 37 10,559,764
Deductions 9,687,852 17,000 693,664 56,475 21 10,455,012
Total Liabilities
December 31,2015 $ 6,354 $ 4,246 $ 409,988 $ 53,834 $ 5,190 $ 479,612
131
Schedule E-2
CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - PENSION TRUST FUNDS COMBINING STATEMENT OF PLAN NET POSITION December 31, 2015
(Amounts are in Thousands of Dollars)
Pension Trust Funds
Municipal
Employees' Laborers' Policemen's Firemen's Total
ASSETS
Cash and Cash Equivalents $ 489 $ 42,960 $ 73,067 $ 66,940 $ 183,456
Receivables
Employer and Other 185,710 14,309 637,469 223,289 1,060,777
Interest and Dividends 13,414 1,508 6,987 3,622 25,531
Total Receivables 199,124 15,817 644,456 226,911 1,086,308
Due from City 13,070 1,155 36,994 18,539 69,758
Property, Plant,
Equipment and Other 12_ 178 -_ 173 363
Investments, at Fair Value Bonds and U.S. Government
Obligations 1,147,788 222,186 547,770 163,381 2,081,125
Stocks 2,033,832 663,261 1,391,380 517,425 4,605,898
Mortgages and Real Estate 520,697 45,787 80,388 27,283 674,155
Other 917,049 257,466 427,688 27,477 1,629,680
Total Investments 4,619,366 1,188,700 2,447,226 735,566 8,990,858
Invested Securities Lending
Collateral 396,836 69,647 93,089 140,197 699,769
Total Assets 5,228,897 1,318,457 3,294,832 1,188,326 11,030,512
LIABILITIES
Voucher Warrants Payable 90,634 10,087 142,794 3,028 246,543
Securities Lending Collateral 396,836 69,647 93,089 140,197 699,769
Total Liabilities 487,470 79,734 235,883 143,225 946,312
Deferred Inflows -_ 66_ -_ -_ 66
Net Position Restricted for
Pension Benefits $ 4,741,427 $ 1,238,657 $ 3,058,949 $ 1,045,101 $ 10,084,134
132
Schedule E-3
CITY OF CHICAGO, ILLINOIS
FIDUCIARY FUNDS - PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION
Year Ended December 31, 2015
(Amounts are in Thousands of Dollars)
Pension Trust Funds
Municipal
Employees' Laborers' Policemen's Firemen's Total
ADDITIONS Contributions
Employees $ 131,428 $ 16,844 $ 107,626 $ 46,552 $ 302,450
City 157,717 14,567 582,278 238,486 993,048
Total Contributions 289,145 31,411 689,904 285,038 1,295,498
Investment Income Net Appreciation in Fair
Value of Investments 12,250 (34,248) (51,940) (15,720) (89,658)
Interest, Dividends and Other .. 123,578 21,478 58,293 28,256 231,605
Investment Expense (23,505) (9,981) (9,314) (5,460) (48,260)
Net Investment Income 112,323 (22,751) (2,961) 7,076 93,687
Securities Lending Transactions
Securities Lending Income 1,329 232 777 701 3,039
Securities Lending Expense 374 200 (58) (175) 341
Net Securities Lending
Transactions 1,703 432 719 526 3,380
Total Additions 403,171 9,092 687,662 292,640 1,392,565
DEDUCTIONS Benefits and Refunds of
Deductions 834,528 154,685 686,218 280,398 1,955,829
Administrative and General 6,701 3,845 4,509 . 3,149 18,204
Total Deductions 841,229 158,530 690,727 283,547 1,974,033
Net Decrease in Net Position (438,058) (149,438) (3,065) 9,093 (581,468)
Net Position Restricted for Pension Benefits:
Beginning of Year 5,179,485 1,388,095 3,062,014 1,036,008 10,665,602
End of Year $ 4,741,427 $ 1,238,657 $ 3,058,949 $ 1,045,101 $ 10,084,134
133
This Page Intentionally Left Blank
134
PART III
STATISTICAL SECTION
(UNAUDITED)
This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City's overall financial health.
Contents:
Financial Trends
These schedules contain trend information to help the reader understand how.the City's financial performance and well being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the afford ability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
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.
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement No. 34 in 2002; schedules presenting government-wide information include information beginning that year.
135
Table 1
CITY OF CHICAGO
NET POSITION BY COMPONENT
Last Ten Fiscal Years Ended December 31, 2015
(Amounts are in Thousands of Dollars)
2006
Governmental Activities:
Net Investment in Capital Assets .. $ 574,393
Restricted 2,451,160
Unrestricted (deficit) (2,003,328)
Total governmental activities,
net position $ 1,022,225
Business-type activities:
Net Investment in Capital Assets .. $ 1,940,069
Restricted 971,669
Unrestricted (1,587,939)
Total business type activities,
net position $ 1,323,799
Primary Government:
Net Investment in Capital Assets .. $ 2,514,462
Restricted 3,422,829
Unrestricted (3,591,267)
Total primary government,
net position $ 2,346,024
2009 (1)
2008
494,930 2,842,149 (4,092,388)
251,103 3,735,128 (5,840,026)
2007
$ 570,665 2,980,207 (3,435,506)
2,323,394 779,894 (1,517,891)
2,286,658 821,909 (1,541,136)
$ 115,366 $ (755,309) $ (1,853,795)
$ 2,168,833 881,908 (1,561,634)
2,818,324 3,622,043 (5,610,279)
$ 2,537,761 4,557,037 (7,381,162)
$ 1,489,107 $ 1,585,397 $ 1,567,431
$ 2,739,498 $
3,862,115
(4,997,140) _
$ 1,604,473 $
830,088 $ (286,364)
Note: The City began to report accrual information when it implemented GASB Statement No. 34 in fiscal year ended 2002.
As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.
The City implemented GASB Statement No. 68 in 2015 and the net position was restated at January 1, 2015.
136
2012
$ (324,284) 3,611,533 (6,582,562)
$ (3,295,313)
$ (299,859) 1,596,408 (5,691,215)
$ (4,394,666)
$ (215,961) 1,908;516 (7,537,057)
$ (5,844,502)
$ (242,862) 1,940,911 (9,120,377)
$ (7,422,328)
$ 28,744 1,491,995 (10,564,064)
$ (9,043,325)
$ (292,432) 1,519,914 (25,263,289)
$ (24,035,807)
$ 2,365,522 790,881 (1,431,859)
$ 1,724,544
$ 2,451,787 874,837 (1,541,515)
$ 1,785,109
$ 2,388,310 982,517 (1,354,572)
$ 2,016,255
$ 2,446,242 883,758 (1,278,777)
$ 2,051,223
$ 2,713,825 978,972 (1,185,755)
$ 2,507,042
$ 2,892,548 1,042,980 (3,731,167)
$ 204,361
$ 2,041,238 4,402,414 (8,014,421)
$ (1,570,769)
$ 2,151,928 2,471,245 (7,232,730)
$ (2,609,557)
$ 2,172,349 2,891,033 (8,891,629)
$ (3,828,247)
$ 2,203,380 2,824,669 (10,399,154)
$ (5,371,105)
$ 2,742,569 2,470,967 (11,749,819)
$ (6,536,283)
$ 2,600,116 2,562,894 (28,994,456)
$ (23,831,446)
137
Table 2
CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
2006 2007 2008 2009
Expenses
Governmental Activities:
General Government $ 2,088,299 $ 2,452,145 $ 2,384,586 $ 2,364,754
Public Safety 2,300,048 2,435,437 2,434,842 2,521,151
Streets and Sanitation 337,103 367,222 371,112 297,156
Transportation 292,679 333,401 381,090 351,101
Health 170,769 175,577 170,838 166,914
Cultural and Recreational 119,193 128,003 140,065 129,996
Interest on Long-term Debt 371,523 385,305 381,504 386,125
Total Governmental Activities 5,679,614 6,277,090 6,264,037 6,217,197
Business-type Activities:
Water 324,075 350,181 371,441 382,502
Sewer 130,471 136,961 158,292 169,982
Chicago Midway
International Airport 188,092 211,082 217,609 206,613
Chicago-O'Hare
International Airport 697,497 751,351 803,404 811,710
Chicago Skyway 12,752 13,555 12,359 11,775
Total Business-type Activities 1,352,887 1,463,130 1,563,105 1,582,582
Total Primary Government $ 7,032,501 $ 7,740,220 $ 7,827,142 $ 7,799,779
NOTES:
Employee Pensions and Other have been reclassified by function.
The City began to report accrual information when it implemented GASB Statement No. 34 in fiscal year ended 2002.
138
2014
2,557,681 2,824,028 235,863 373,437 142,352 126,939 404,218 6,664,518
2,734,419 2,689,471 245,898 410,802 151,152 102,808 474,226 6,808,776
2,751,944 2,910,160 228,622 383,510 123,055 146,283 460,660 7,004,234
2,667,205 3,044,811 242,500 400,506 119,678 128,302 477,959 7,080,961
2,857,789 2,913,469 275,814 475,751 125,068 121,548 580,701 7,350,140
6,238,028 3,192,197 253,432 471,689 119,199 118,775 861,293 11,254,613
399,347 184,888
416,289 194,838
417,499 195,911
442,474 216,587
455,433 225,600
900,346 505,032
218,172
834,487 11,312
1,654,499
879,281 10,930
1,719,510
955,276 10,621
1,805,174
920,781 10,585
1,831,507
1,029,559 10,314 1,969,137
1,380,512 8,727 3,110,341
8,319,017 $ 8,528,286 $ 8,809,408 $ 8,912,468 $ 9,319,277 $ 14,364,954
139
Table 2 - Continued CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Program Revenues
Governmental Activities: Licenses, Permits, Fines and Charges for Services:
General Government $
Public Safety
Streets and Sanitation
Transportation
Health
Cultural and Recreational
Operating Grants and Contributions ...
Capital Grants and Contributions
Total Governmental Activities
2006
385,082 $ 151,835
36,058
10,224 5,529
23,127 659,279 142,705
1,413,839
2007
422,363 $ 155,529
41,467
13,262 2,795
24,412 610,974 137,613
1,408,415
2008
440,023 $ 129,518
40,578
14,071 3,157
25,725 624,356 139,949
1,417,377
2009
382,617 158,490 30,990 24,895 2,504 22,375 611,301 115,261
1,348,433
Business-type Activities: Licenses, Permits, Fines and Charges for Services:
Water
Sewer
Chicago Midway
International Airport
Chicago-O'Hare
International Airport
Chicago Skyway
Capital Grants and Contributions
Total Business-type Activities and
Program Revenues
Total Primary Government
Program Revenues $_
Net (Expenses)/Revenues
Governmental Activities $
Business-type Activities
Total Primary Government
Net Expense $
330,439 136,437
105,570
545,916
273,320
334,377 138,681
107,253
652,763
268,331
410,213 175,163
122,301
624,443
211,174
370,244 160,005
124,985
684,282
1,391,682
1,501,405
1,543,294
224,823
1,564,339
2,805,521 $ 2,909,820 $ 2,981,716 $ 2,891,727
38,795
1,234
38,275
(4,265,775) $ (4,868,675) $ (4,846,660) $ (4,868,764)
(39,288)
(4,226,980) $ (4,830,400) $ (4,845,426) $ (4,908,052)
140
2014
370,028 $ 150,710
38,092
21,640 8,332
21,635 674,677 114,871
1,399,985
388,886 $ 211,157 37,291 28,613 7,796 7,201 788,812 282,008
1,751,764
452,892 $ 199,572
42,138
39,343 1,751
14,454 748,256 172,456
1,670,862
467,423 196,344 45,629 46,076 2,023 15,947 634,384 184,415
1,592,241
505,275 $ 208,206
44,552
44,278 2,281
14,643 470,659 249,860
1,539,754
534,325 182,670 39,602 37,522 5,839 14,850 496,679 249,064
1,560,551
458,395 198,229
149,056
702,603
246,309
1,754,592
454,221 203,349
157,371
679,402
257,438
1,751,781
576,287 253,912
201,749
857,114
83,219
1,972,281
637,114 292,290
221,205
870,654
213,067
2,234,330
692,634 322,228
216,662
1,012,529
95,624
2,339,677
769,408 375,877
225,383
1,029,788
85,968
2,486,424
$ 3,154,577 $ 3,503,545 $ 3,643,143 $ 3,826,571 $ 3,879,431 $ 4,046,975
100,093
32,271
167,107
402,823
370,540
$ (5,264,533) $ (5,057,012) $ (5,333,372) $ (5,488,720) $ (5,810,386) $ (9,694,062)
(623,917)
$ (5,164,440) $ (5,024,741) $ (5,166,265) $ (5,085,897) $ (5,439,846) $ (10,317,979)
141
Table 2 - Concluded CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
General Revenues and Other Changes in Net Position
Governmental Activities: Taxes
Property Tax $
Utility Tax
Sales Tax
Transportation Tax
Transaction Tax
Special Area Tax
Other Taxes
Grants and Contributions Not
Restricted to Specific Programs
Unrestricted Investment Earnings
Loss on Capital Assets
Transfers
Miscellaneous
Total Governmental Activities
Business-type Activities:
Investment Earnings
Miscellaneous
Special Item
Transfers
Total Business-type Activities
Total Primary Government $_
Change in Net Position
Governmental Activities $
Business-type Activities
Total Primary Government $
2009 (1)
2007
2008
799,878 629,497 273,951 321,362 275,434 531,314 262,734
712,360 90,176
797,026 579,101 252,282 333,199 205,026 501,042 250,982
601,198 12,296
732,415 552,179 293,078 332,459 304,715 533,260 245,408
714,661 182,700
1,000 69,941
2006
700,636 522,089 288,052 337,780 339,020 460,940 233,620
654,017 148,631
79,279
238,126
3,961,816
3,975,985
3,770,278
2,000 51,774
57,451 37,605
12,381 8,941
97,556 27,383
(2,000)
3,738,559
100,720 27,313
127,033
95,056
21,322
(1,000)
122,939
(527,216) 161,734
(906,859) 165,308
(870,675) 96,290
3,861,498 $ 4,088,849 $ 4,071,041 $ 3,791,600
(774,385) $ (1,116,452)
(1,098,486) (17,966)
(365,482) $ (741,551) $
As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.
The City implemented GASB Statement No. 68 in 2015 and the net position was restated at January 1, 2015.
142
2015
796,928 561,936 260,364 335,235 227,772 477,241 259,325
934,870 564,236 310,626 331,441 250,486 457,192 269,258
896,246 548,682 294,417 373,544 281,957 274,617 294,280
906,740 547,651 307,837 381,080 344,493 306,057 298,951
926,839 570,469 324,273 406,624 379,256 260,256 323,946
1,179,395 562,697 346,319 384,978 466,432 444,972 369,405
654,043 100,269
149,902
3,823,015
598,498 64,294
1,000 175,758
3,957,659
692,232 92,050
135,511
3,883,536
754,716 (6,259) (16,886)
139,710
3,964,090
740,911 62,400
194,415
4,189,389
815,157 (1,357)
625 264,806
4,833,429
6,831 50,190
25,197 38,842
(13,243) 47,354
35,849 49,430
27,563 39,744
(625)
57,021
28,294
64,039
34,111
66,682
48,517 34,687 (53,910) (1,000)
85,279
$ 3,880,036 $ 3,985,953 $ 3,947,575 $ 3,998,201 $ 4,274,668 $ 4,900,111
(1,441,518) 157,114
(1,099,353) 60,565
(1,449,836) 231,146
(1,524,630) 436,934
(1,620,997) 455,819
(4,860,633) (557,235)
143
Table 3
CITY OF CHICAGO, ILLINOIS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) Last Ten Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Percent of Total
Percent of Total
Percent of Total
Revenues:
Property Tax $ 665,990
Utility Tax 522,089
Sales Tax 559,156
Transportation Tax 337,780
State Income Tax 380,111
Transaction Tax 339,020
Special Area Tax 374,342
Other Taxes 233,620
Total Taxes 3,412,108
Federal/State Grants 823,504
Internal Service 275,191
Licenses and Permits .. 117,689
Fines 221,819
Investment Income 148,631
Charges for Services 155,215
Miscellaneous 51,774
Total Revenues $ 5,205,931
13.1 11.3 9.9 5.8 7.8 4.9 9.9 4.7
12.1 % $ 729,823
10.1 629,497
10.4 548,571
6.1 321,362
7.9 435,393
5.6 275,434
8.9 552,709
4.5 262,734
12.8 % $ 661,707
10.0 552,179
10.7 570,927
6.5 332,459
7.3 433,446
6.5 304,715
7.2 488,193
67.4 14.2 5.9 2.1 4.9 1.6 2.6 1.3
65.5 15.8 5.3 2.3 4.3 2.8 3.0 1.0
3,589,034 781,967 303,827 148,172 240,277 182,700 151,369 79,956
65.6 14.3 5.5 2.7 4.4 3.3 2.8 1.4
4.5 245,408
3,755,523 796,911 329,643 114,707 274,443
90,176 144,161
79,279
100.0 % $ 5,477,302 100.0 % $ 5,584,843 100.0 %
Percent of Total
Percent of Total
Percent of Total
Revenues:
Property Tax $ 866,149
Utility Tax 547,651
Sales Tax 623,942
Transportation Tax 381,080
State Income Tax 436,740
Transaction Tax 344,493
Special Area Tax 332,040
Other Taxes 298,951
Total Taxes 3,831,046
Federal/State Grants 708,702
Internal Service 324,601
Licenses and Permits .. 123,633
Fines 329,460
Investment Income (19,111)
Charges for Services 161,415
Miscellaneous 122,710
Total Revenues $ 5,582,456
15.5 9.8
11.2 6.8 7.8 6.2 5.9 5.4
929,841 570,469 658,799 406,624 404,050 379,256 331,380 323,946
869,841 562,697 703,234 384,978 456,397 466,432 353,413 369,405
15.4 % $
9.4 10.9
6.7
6.7
6.3
5.5
5.4
% $
14.0 %
9.0 11.3
6.2
7.3
7.5
5.7
68.6 12.7 5.8 2.2 5.9 (0.3) 2.9 2.2
4,004,365 812,175 335,762 122,143 353,517 69,650 172,928 179,939
66.3 13.3 5.5 2.0 5.8 1.2 2.9 3.0
4,166,397 764,846 382,758 129,035 387,160 (26,895) 147,927 264,806
5.9 66.9 12.3
6.2
2.1
6.2 (0.4)
2.4
4.3
100.0 % $ 6,050,479 100.0 % $ 6,216,034 100.0 %
NOTE:
(1) Includes General, Special Revenue, Permanent, Debt Service and Capital Project Funds.
144
Percent Percent Percent Percent
2009 of Total 2010 of Total 2011 of Total 2012 of Total
$ 806,010 15.1 % $
579,101 10.9
503,952 9.4
333,199 6.2
347,814 6.5
205,026 3.8
487,909 9.1
250,982 4.7 _
3,513,993 65.7
753,269 14.1
306,095 5.8
100,458 1.9
267,891 5.0
31,520 0.6
124,557 2.4
238,126 4.5
754,081 14.0 %
561,936 10.4
527,004 9.8
335,235 6.2
385,668 7.2
227,772 4.2
486,526 9.0
259,325 4.8
3,537,547 65.6
815,879 15.2
295,765 5.5
96,240 1.8
272,667 5.1
103,725 1.9
113,565 2.1
149,902 2.8
$ 888,531 15.2 %
564,236 9.6
563,156 9.6
331,441 5.7
344,674 5.9
. 250,486 4.3
552,894 9.4
269,258 4.5
3,764,676 64.2
976,051 16.7
321,138 5.5
102,702 1.8
283,822 4.8
73,921 1.3
160,649 2.7
173,768 3.0
$ 941,398 16.2 %
548,682 9.4
594,290 10.2
373,544 6.5
391,285 6.7
281,957 4.9
370,454 6.3
294,280 5.0
3,795,890 65.2
877,864 15.1
319,285 5.5
117,568 2.1
5.3
90,885 1.6
170,724 2.9
2.3
145
$ 5,335,909 100.0 % $ 5,385,290 100.0 % $ 5,856,727 100.0 % $ 5,814,237 100.0 %
Table 4
CITY OF CHICAGO, ILLINOIS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Percent of Total
Percent of Total
Percent of Total
Expenditures: Current:
Public Safety $1,851,356 29.5% $1,880,599 30.8% $1,892,152 27.7%
General Government 1,523,482 24.3 1,650,679 27.1 1,804,925 26.4
Employee Pensions 396,923 6.3 371,649 6.1 413,690 6.0
Streets and Sanitation 353,828 5.6 377,485 6.1 382,628 5.6
Transportation 244,381 3.9 267,476 4.4 334,684 4.9
Health 173,594 2.8 195,254 3.2 184,597 2.7
Cultural and Recreational 99,841 1.6 108,527 1.8 117,664 1.7
Other 9,112 0.1 4,427 0.1 14,483 0.2
Capital Outlay 915,311 14.6 602,433 9.9 661,464 9.7
Debt Service:
Principal Retirement 375,028 6.0 297,503 4.9 656,805 9.6
Interest and Other Fiscal
Charges 331,507 5.3 342,489 5.6 376,297 5.5
Total Expenditures $6,274,363 100.0% $6,098,521 100.0% $6,839,389 100.0%
Debt Service as a Percentage of
Non Capital Expenditures (2) 12.9% 11.4 % 16.7 %
Percent Percent Percent
2013 of Total 2014 of Total 2015 of Total
Expenditures: Current:
PublicSafety $2,034,896 32.1 % $2,066,979 28.8% $2,111,709 28.6%
General Government 1,834,558 29.0 2,043,557 28.5 2,063,897 27.9
Employee Pensions 444,748 7.0 483,493 6.7 479,581 6.5
Streets and Sanitation 241,787 3.8 269,393 3.8 249,078 3.3
Transportation 443,199 7.0 518,501 7.2 475,482 6.4
Health 126,599 2.0 128,769 1.8 119,048 1.6
Cultural and Recreational 97,487 1.6 93,525 1.4 95,049 1.3
Other 7,681 0.1 5,410 0.0 6,726 0.1
Capital Outlay 340,481 5.4 395,216 5.5 425,050 5.8
Debt Service:
Principal Retirement 297,152 4.7 599,395 8.4 513,806 7.0
Interest and Other Fiscal
Charges 464,587 7.3 568,156 7.9 850,243 11.5
Total Expenditures $6,333,175 100.0% $7,172,394 100.0 % $7,389,669 100.0%
Debt Service as a Percentage of
Non Capital Expenditures (2) 13.1 % 17.9% 20.1 %
NOTES:
Includes General, Special Revenue, Debt Service and Capital Project Funds.
Non Capital Expenditures include all expenditures except Capital Expenditures included in Capital Outlay with Transportation.
146
Percent Percent Percent Percent
2009 of Total 2010 of Total 2011 of Total 2012 of Total
$1,913,711 1,663,990 430,915 300,131 261,948 177,812 107,604 7,676 619,273
30.5 % 26.5
6.9
4.8
4.2
2.8
1.7
0.2
9.9
$1,909,728 1,786,450 435,432 232,426 297,339 153,877 104,297 30,000 628,910
30.1 % 28.2
6.9
3.7
4.7
2.4
1.6
0.5
9.9
$1,984,312 2,057,524 481,407 236,591 507,589 148,449 90,905 26,211 470,213
30.0 % 31.1
7.3
3.6
7.7
2.2
1.4
0.3
7.1
$2,075,959 1,806,541 458,951 228,100 514,303 127,567 102,384 11,725 435,600
31.7% 27.5
7.0
3.6
7.8
1.9
1.6
0.1
6.6
434,905 351,430
5.2 7.0
$6,269,395 100.0% $6,334,422 100.0% $6,621,631 100.0% $6,563,846 100.0%
13.6 %
EXPENDITURES BY FUNCTION
OPublic Sataiy QGeneral Government
¦Debt Service
DStreeb and Sanitation D Capita I Outlay
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
147
Table 4A
CITY OF CHICAGO, ILLINOIS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2015 (Amounts are in Thousands of Dollars) Modified Accrual Basis of Accounting
2006 2007 2008 2009
Excess of revenues over
(under) expenditures $ (1,068,432) $ (621,219) $ (1,254,546) $ (933,486)
Other Financing Sources (Uses):
$ 1,653,881
(951,419)
332,016 (331,016)
703,462~
$ 795,432
(186,421)
293,448 (293,448)
609,011
$ 762,833
(276,607)
670,035 (668,035)
488,226~ $ (580,206)
$ 1,001,302
(213,435)
2,253,459 (2,253,459)
787,867
82,243 $ (645,535) $ (145,619)
Issuance of Debt,
including premium/discount Payment to Refunded Bond
Escrow Agent
Issuance of line of credit
Transfers in
Transfers out
Total other financing sources
(uses)
Net change in fund balances
148
2015
$ (949,132) $ (764,110) $ (749,609) $ (750,719) $ (1,121,915) $ (1,173,635)
$ 1,434,390
(412,184)
647,407 (647,407)
1,022,206
$ 1,212,326
(476,787)
572,211 (571,210)
736,540"
758,557
(268,397)
178,750 (178,750)
490,160
235,367
144,673 160,322 (160,322)
380,040
$ 1,021,812
(302,862)
652,586 (652,586)
718,950
$ 1,093,939
239,131 229,609 (228,984)
1,333,695
149
Table 5
CITY OF CHICAGO, ILLINOIS FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2015 (Amounts Are in Thousands of Dollars) (Modified Accrual Basis of Accounting)
2006 2007 2008 2009
General Fund:
Reserved $ 35,557 $ 39,673 $ 48,217 $ 52,048
Unreserved 26,834 4,634 226 2,658
Total General Fund 62,391 44,307 48,443 54,706
General Fund Balance: (2)
Nonspendable $ - $ $ - $
Assigned
Unassigned - - - _
Total Fund Balance
Other Governmental Funds:
Reserved $ 800,546 $ 1,191,674 $ 461,830 $ 1,418,399
Unreserved, Reported in:
Special Revenue Funds 723,353 816,551 959,424 (409,796)
Capital Projects Funds 696,630 906,603 372,063 321,251
Debt Service Funds - (556,819) (551,137)
Permanent Fund (1) 231,017 191,391 660,333 422,319
Total All Other Governmental Funds 2,451,546 2,549,400 1,902,513 1,752,173
Total Governmental Funds $ 2,513,937 $ 2,593,707 $ 1,950,956 $ 1,806,879
Other Governmental Fund Balance: (2)
Restricted $ - $ - $ - $
Committed
Assigned
Unassigned - - - _
Total Fund Balance
Total Governmental Funds $ - $ - $ - $
NOTE:
This balance represents the Reserve Fund, Unreserved, Designated for Future Appropriations balance.
Beginning with 2011, GASB Statement No. 54 was implemented which changed the way fund balance is presented. All periods after 2011 will be presented in the same format.
150
2015
54,390 81,151
135,541
24,055 143,549 167,929
335,533
20,885 177,000 33,417
231,302
24,788 108,424 33,845
167,057
24,498 65,223 51,557
141,278
23,828 98,377 93,027 215,232
$ 1,419,714
(349,517) 534,013
138,724 1,742,934
$ 1,878,475 $
$ 2,317,734 961,246 2,550 (1,761,077) . 1,520,453
$ 1,855,986
$ 2,332,911 882,127
(1,852,973) 1,362,065
$ 1,593,367
2,262,028 699,073
(1,901,567) 1,059,534
1,226,591
1,829,431 696,067
(1,843,440) 682,058
823,336
1,878,692 677,821
(1,789,019) 767,494
982,726
151
Table 6
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
2011 (3) 2012 (3) 2013 (3) 2014 (3) 2015 (3)
Revenues:
Utility Tax $ 467,630 $ 462,475 $ 456,869 $ 473,496 $ 437,780
Sales Tax 536,281 572,185 583,681 620,299 665,793
State Income Tax 236,521 282,779 308,899 278,031 336,959
Other Taxes 618,384 694,383 749,742 803,961 935,658
Federal/State Grants 1,294 1,074 1,871 2,335 1,845
Other Revenues (1) 921,056 907,760 929,429 998,028 1,088,600
Total Revenues 2,781,166 2,920,656 3,030,491 3,176,150 3,466,635
Expenditures: Current:
Public Safety 1,895,404 1,956,152 1,953,572 2,020,072 2,061,540
General Government 863,622 864,556 885,268 929,918 1,064,470
Other (2) 278,561 258,501 267,852 270,899 298,817
Debt Service 2,849 2,160 2,382 10,369 8,275
Total Expenditures 3,040,436 3,081,369 3,109,074 3,231,258 3,433,102
Revenues Under Expenditures (259,270) (160,713) (78,583) (55,108) 33,533
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 95,000 55,000 - - 19,300
Transfers In 372,744 31,617 21,018 39,700 34,551
Transfers Out (14,357) (26,965) (10,583) (10,081) (12,760)
Total Other Financing Sources (Uses). 453,387 59,652 10,435 29,619 41,091
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses 194,117 (101,061) (68,148) (25,489) 74,624
Fund Balance - Beginning of Year 135,541 335,533 231,302 167,057 141,278
Change in Inventory 5,875 (3,170) 3,903 (290) (670)
Fund Balance - End of Year $ 335,533 $ 231,302 $ 167,057 $ 141,278 $ 215,232
NOTES:
Includes Internal Service, Licenses and Permits, Fines, Investment Income, Charges for Services and Miscellaneous Revenues.
Includes Health, Streets and Sanitation, Transportation, Cultural and Recreational and Other Expenditures.
Source: City of Chicago Basic Financial Statements for years ended December 31, 2011-2015.
152
Table 7
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
2011 (3)
Revenues:
Property Tax $ 373,163 $ 350,408 $ 316,958 $ 357,457 $ 360,132
Utility Tax 83,317 63,883 68,458 74,641 102,593
State Income Tax 108,153 108,506 127,841 126,019 119,438
Other Taxes 639,569 607,135 589,422 624,676 626,821
Federal/State Grants 974,757 876,790 706,831 809,840 763,001
Other Revenues (1) 134,600 168,040 96,263 162,996 143,029
Total Revenues 2,313,559 2,174,762 1,905,773 2,155,629 2,115,014
Expenditures: Current:
Public Safety 88,908 119,807 81,324 46,907 50,169
General Government 1,193,902 941,985 949,290 1,113,639 999,427
Employee Pensions 481,407 458,951 444,748 483,493 479,581
Other (2) 731,184 725,578 648,901 744,699 646,566
Capital Outlay 2,964 5,259 7,187 9,863 45,445
Debt Service 2,533 723 115 4,332 71_
Total Expenditures ' 2,500,898 2,252,303 2,131,565 2,402,933 2,221,259
Revenues Under Expenditures (187,339) (77,541) (225,792) (247,304) (106,245)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 72,925 70,541 125,063 17,768 28,657
Line of Credit .. 75,994
Transfers In 149,574 76,968 91,022 184,033 32,257
Transfers Out (380,543) (56,622) (59,631) (64,863) (70,322)
Total Other Financing Sources (Uses) ... (158,044) 90,887 156,454 136,938 66,586
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses (345,383) 13,346 (69,338) (110,366) (39,659)
Fund Balance - Beginning of Year 736,585 391,202 404,548 335,210 224,844
Fund Balance - End of Year $ 391,202 $ 404,548 $ 335,210 $ 224,844 $ 185,185
NOTES:
Includes Internal Service, Fines, Investment Income, Charges for Services and Miscellaneous Revenues.
Includes Health, Streets and Sanitation, Transportation, Cultural and Recreational and Other Expenditures.
Source: Major and Nonmajor Special Revenue Funds for years ended December 31, 2011-2015.
153
Table 8
CITY OF CHICAGO, ILLINOIS DEBT SERVICE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
2011 (2) 2012 (2) 2013 (2) 2014 (2) 2015 (2)
Revenues:
Property Tax $ 515,368 $ 590,990 $ 549,191 $ 572,384 $ 509,709
Utility Tax 13,289 22,324 22,324 22,332 22,324
Sales Tax 26,875 22,105 40,261 38,500 37,441
Other Taxes 146,126 18,717 17,400 12,569 11,749
Other Revenues (1) 44,101 53,340 11,888 36,443 22,460
Total Revenues 745,759 707,476 641,064 682,228 603,683
Expenditures:
Debt Service 613,048 799,833 759,242 1,152,850 1,355,703
Total Expenditures 613,048 799,833 759,242 1,152,850 1,355,703
Revenues Over (Under) Expenditures .. 132,711 (92,357) (118,178) (470,622) (752,020)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 580,015
Payment to Refunded Bond Escrow Agent. (476,787)
Transfers In 47,134
Transfers Out (176,285)
Total Other Financing Sources (Uses)... (25,923)
337,410|99|371,207 1,096,759
(268,397) . - (300,600)
47,322 46,352 411,413 57,351
(83,359) (89,157) (268,872) (124,488)
32,976 (42,801) 213,148 1,029,622
Revenues and Other
Financing Sources
Over (Under) Expenditures and
Other Financing Uses 106,788
Fund Balance - Beginning of Year 423,052
Fund Balance - End of Year $ 529,840
(59,381) (160,979) (257,474) 277,602
529,840 470,459 309,480 52,006
$ 470,459 $ 309,480 $ 52,006 $ 329,608
NOTES:
Includes Investment Income and Miscellaneous Revenues.
Source: Major (Bond, Note Redemption and Interest) and Nonmajor (Special Taxing Areas) Debt Service Funds for years ended December 31, 2011-2015.
154
Table 9
CITY OF CHICAGO, ILLINOIS CAPITAL PROJECT FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
2012 (2) 2013 (2) 2014 (2) 2015 (2)
Revenues:
Other Revenues (1) $ 16,243
Total Revenues 16,243
$ 11,343 $ 5,128 $ 36,472 $ 30,702
11,343 5,128 36,472 30,702
Expenditures:
Capital Outlay 467,249
Total Expenditures 467,249
430,341 333,294 385,353 379,605
430,341 333,294 385,353 379,605
(418,998) (328,166) (348,881) (348,903)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discountyincluding Premium 464,386 295,606 110,300 630,575 62,360
Issuance Line of Credit - - 144,673 - 50,000
Transfers In 2,759 22,843 1,930 17,440 105,450
Transfers Out (25)_ (11,804) (951) (308,770) (21,414)
Total Other Financing Sources (Uses) . 467,120 306,645 255,952 339,245 196,396
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses 16,114 (112,353) (72,214) (9,636) (152,507)
Fund Balance - Beginning of Year 583,297 599,411 487,058 414,844 405,208
Fund Balance - End of Year $ 599,411 $ 487,058 $ .414,844 $ 405,208 $ 252,701
NOTES:
Includes Investment Income, Charges for Services and Miscellaneous Revenues.
Source: Major (Community Development and Improvement Projects) and Nonmajor (Capital Projects Funds) for years ended December 31, 2011-2015.
155
Table 10
CITY OF CHICAGO, ILLINOIS PROPERTY TAX LEVIES BY FUND (1) Five Years Ended December 31, 2015 (Amounts are in Thousands of Dollars)
Percent
2011 2012 Change
Note Redemption and Interest (2)
Bond Redemption and Interest
Policemen's Annuity and Benefit (3)
Municipal Employees' Annuity and Benefit (3)
Firemen's Annuity and Benefit (3)
Laborers' and Retirement Board Employees'
Annuity and Benefit (3)
Total
$ 73,377 $ 73,481 0.14 %
411,905 411,489 (0.10)
143,785 143,865 0.06
126,997 129,138 1.69
66,125 65,461 (1.00)
11,759 11,202 (4.74)
$ 833,948 $ 834,636 0.08
NOTES:
See Table 11 - PROPERTY LEVIES, COLLECTIONS AND ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES 2006 - 2015. Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.
Includes Corporate, Chicago Public Library Maintenance and Operations, Chicago Public Library Building and Sites and City Relief Funds.
For information regarding the City's unfunded (assets in excess of) pension benefit obligations under its Pensions Plans, see the individual Pension Plans Financial Statements.
Estimated; actual was not available from the Cook County Clerk's Office at time of publication.
Source: Cook County Clerk's. Office.
156
2013
$ 74,231 411,807 138,146 122,066 81,518
10,486
$ 838,254
Percent Change
0.08 (3.98) (5.48) 24.53
(6.39)
0.43
2014
$ 97,061 412,139 136,680 123,239 81,363
10,934
$ 861,416
Percent Change
30.76 %
0.08 (1.06)
0.96 (0.19)
4.27
2.76
2015
$ 97,708 411,415 361,987 124,706 179,424
11,070
$ 1,186,310 (4)
Percent Change
0.67 (0.18) 164.84
1.19 120.52
1.24
37.72
157
Table 11
CITY OF CHICAGO, ILLINOIS
PROPERTY LEVIES, COLLECTIONS AND
ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES
Last Ten Years Ended December 31, 2015
(Amounts are in Thousands of Dollars)
Tax Year(1)
Total Tax Levy for Fiscal Year (2), (3)
Collected Within Fiscal Year
Percentage of
Levy
Amount
Collections in
Subsequent Years
Total Collections to Date
Percentage of
Levy
Amount
Estimated Allowance for
Uncollectible Taxes
Net Outstanding
Taxes Receivable
$
712,008 776,522 700,579 790,141 800,582 804,245 807,985 832,042
95.02 93.09 83.99 94.73 96.00 96.36 96.39 96.59 N/A
719,230 $ 630,666 87.69 % $
749,351 834,152 834,109 834,089 833,948 834,636 838,254 861,416 1,186,310 (4)
59,896 13,076 32,306 102,003 18,381 7,982 17,789 20,207
690,562 725,084 808,828 802,582 808,522 808,564 822,034 828,192 832,042
96.01 % 96.76 96.96 96.22 96.93 96.96 98.49 98.80 96.59 N/A
28,668 24,267 25,324 31,527 25,567 25,384 12,375 9,861 25,823 47,453
227 201 3,551 1,138,857
Total Net Outstanding Taxes Receivable $ 1,142,836
NOTES:
Taxes for each year become due and payable in the following year. For example, taxes for the 2015 tax levy become due and payable in 2016.
Does not include levy for Special Service Areas and Tax Increment Projects.
Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.
Estimate; actual was not available from Cook County Clerk's Office at time of publication.
158
Table 12
CITY OF CHICAGO, ILLINOIS
TOP TEN ESTIMATED EQUALIZED ASSESSED VALUATION (EAV) Current Year and Nine Years Ago (2) (Amounts are in Thousands of Dollars)
2014 EAV
Percentage of Total Rank EAV
2005 EAV
Percent-tage of Total Rank EAV
Willis Tower (4) $ 364,454
AON Building (3) 241,080
Blue Cross Blue Shield Tower (5) 206,782
Water Tower Place 195,486
Chase Plaza 194,963
Franklin Center (6) 187,460
Prudential Plaza 184,102
300 N. LaSalle 183,764
Three First National Plaza 182,085
Citadel Center 181,211
Chicago Mercantile Exchange
Leo Burnett Building
Citicorp Plaza
Totals $ 2,121,387
1 2 3 4 5 6 7 8 9 10
517,080 341,767
183,187 210,013 268,519 266,387
173,646
341,075 188,219 196,662
3.26 % $ 2,686,555
1 2
9 6 4 5
0.87 % 0.58
0.31 0.35 0.45 0.45
3 8 7
10 0.29
0.58 0.32 0.33
4.53 %
NOTES:
Source: Cook County Treasurer's Office, Cook County Assessor's Office.
2015 information not available at time of publication.
AON Building formerly known as AMOCO Building.
Willis Tower formerly known as Sears Tower.
Blue Cross Blue Shield formerly known as Health Care service Corporation Blue Cross.
Franklin Center formerly known as AT&T Corporate Center 1
159
Table 13
CITY OF CHICAGO, ILLINOIS
ASSESSED AND ESTIMATED FAIR MARKET VALUE OF ALL TAXABLE PROPERTY Last Ten Years
(Amounts are in Thousands of Dollars)
Assessed Values (1)
Tax
Year Class 2 (2) Class 3 (3) Class 5 (4) Other (5) Total
13,420,538 1,842,613 10,502,698 462,099 26,227,948
18,521,873 2,006,898 12,157,149 688,868 33,374,788
18,937,256 1,768,927 12,239,086 678,196 33,623,465
19,339,574 1,602,768 12,359,537 693,239 33,995,118
18,311,981 1,812,850 10,720,244 592,364 31,437,439
18,074,177 1,416,863 10,467,682 606,941 30,565,663
17,932,671 1,116,175 10,456,103 588,672 30,093,621
15,529,678 1,208,620 10,233,051 498,310 27,469,659
15,410,659 1,236,401 10,172,186 494,714 27,313,960
15,390,835 1,298,776 10,124,569 512,390 27,326,570
NOTES:
Source: Cook County Assessor's Office. Excludes portion of City in DuPage County.
Residential, 6 units and under.
Residential, 7 units and over and mixed use.
Industrial/Commercial.
Vacant, not-for-profit and industrial/commercial incentive classes. Includes railroad and farm property.
Source: Illinois Department of Revenue.
Source: Cook County Clerk's Office. Excludes portion of City in DuPage County and net of exemptions. Calculations also include assessment of pollution control facilities.
Source: The Civic Federation. Excludes railroad property and portion of City in DuPage County.
2014 information not available at time of publication.
2015 information not available at time of publication.
160
State Equalization Factor (6)
2.7320 2.7080 2.8439 2.9786 3.3701 3.3000 2.9706 2.8056 2.6621 2.7253
Total Equalized Assessed Value (7)
59,304,530 69,517,264 73,645,316 80,977,543 84,685,258 82,087,170 75,122,914 65,250,387 62,363,876 64,908,057
Total Direct
Tax
Rate
1.243 1.062 1.044 1.030 0.986 ' 1.020 1.110 1.279 1.344 1.327
Total Estimated Fair Market Value (8)
286,354,518 329,770,733 320,503,503 310,888,609 280,288,730 231,986,397 222,856,064 206,915,723 236,695,475 N/A (9)
Ratio of Total Equalized
Assessed to Total Estimated Fair
Market Value (9)
20.71 21.08 22.98 26.05 30.21 35.38 33.71 31.53 26.35 N/A (9)
EQUALIZED ASSESSED VALUE
CO
c o
CO
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
161
Table 14
CITY OF CHICAGO, ILLINOIS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Per $100 OF EQUALIZED ASSESSED VALUATION Last Ten Years
Tax Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City
1.243 1.062 1.044 1.030 0.986 1.016 1.110 1.279 1.344 1.327
Chicago School Building and Improvement Fund
$
0.117 0.112 1.116 0.119 0.146 0.152 0.146
Chicago School Finance Authority
0.127 0.118 0.091
Board of
Education
3.026 2.697 2.583 2.472 2.366 2.581 2.875 3.422 3.671 3.660
Community College District No." 508
0.234 0.205 0.159 0.156 0.150 0.151 0.165 0.190 0.199 0.193
NOTE:
(1) 2015 information not available from the Cook County Clerk's Office at time of publication.
Table 15
CITY OF CHICAGO, ILLINOIS PROPERTY TAX RATES - CITY OF CHICAGO Per $100 OF EQUALIZED ASSESSED VALUATION Last Ten Years
(Amounts for Tax Extension are in Thousands of Dollars)
Tax Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total City Tax Extension (2)
$ 718,071 719,230 749,351 834,152 834,109 834,089 833,948 834,636 838,254 861,416
Bond, Note Redemption and Interest
0.606566 0.519706 0.550055 0.508488 0.478955 0.494109 0.542475 0.623916 0.653302 0.659187
Chicago Public Library Bond, Note Redemption and Interest
$
0.090041 0.049968 0.039514 0.094354 0.091851 0.094665 0.103443 0.119254 0.125978 0.125228
Policemen's
Annuity and
Benefit
0.231467 0.194953 0.191548 0.172426 0.167552 0.170734 0.191381 0.220459 0.221494 0.210554
NOTES:
2015 information not available from the Cook County Clerk's Office at time of publication.
Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund
162
Chicago Park District
Metropolitan
Water Reclamation
District
Forest Preserve District of Cook County
Cook County
0.443 0.379 0.355 0.323 0.309 0.319 0.346 0.395 0.420 0.415
0.315 0.284 0.263 0.252 0.261 0.274 0.320 0.370 0.417 0.430
0.060 0.057 0.053 0.051 0.049 0.051 0.058 0.063 0.069 0.069
0.533 0.500 0.446 0.415 0.394 0.423 0.462 0.531 0.560 0.568
5.981 5.302 4.994 4.816 4.627 5.931 5.455 6.396 6.832 6.808
Municipal Employees' Annuity and Benefit
Firemen's Annuity and Benefit
Laborers' and Retirement Board Employees' Annuity and Benefit
0.231683 0.197399 0.174302 0.162182 0.153704 0.161435 0.169036 0.197892 0.195713 0.189848
0.083243 0.099974 0.088581 0.080787 0.078184 0.078352 0.088014 0.100313 0.130700 0.125339
0.011763 0.015754 0.016705 0.015651 0.017166 0.016813 0.016844
1.243 1.062 1.044 1.030 0.986 1.016 1.110 1.279 1.344 1.327
163
Table 16
CITY OF CHICAGO, ILLINOIS
RATIO OF GENERAL NET BONDED DEBT TO EQUALIZED ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Years
(Amounts are in Thousands of Dollars Except Where Noted)
Tax Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Population (1)
2,896,016 2,896,016 2,896,016 2,896,016 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598
Equalized Assessed Value (2)
69,517,264 73,651,158 80,977,543 84,685,258 82,087,170 75,122,914 65,250,387 62,363,876 64,908,057 N/A (6)
G. O. Bonds
5,394,802 5,759,573 5,687,447 6,051,947 6,536,596 6,997,975 7,244,917 7,159,396 7,798,956 8,562,720
Other G. O. Debt
72,530 77,998 259,097 230,263 268,526 198,132 166,460 270,188
239,131
General Certificates Obligation and Other
322,145 458,654 362,140 439,670 574,755 554,015 528,305 501,490 473,290 434,525
Unamortized Premiums (3)
129,002 87,809
NOTES:
Source: U.S. Census Bureau.
Source: Cook County Clerk's Office.
Beginning in 2014, the City will present Unamortized Premiums and Capital Appreciation Bonds Accreted Interest amounts applicable to General Obligation Bonds, Commercial Paper and Other General Obligation Debt.
Gross Bonded Debt includes bonds, notes and capitalized lease obligations that are noncurrent.
Amounts are in dollars.
N/A means not available at time of publication.
164
Accreted Interest (3)
290,179 297,645
Total Gross
-Net of Premiums Less Reserve
& Accretions- for
Bonded Debt (4) Debt Service
5,789,477 6,296,225 6,308,684 6,721,880 7,379,877 7,750,122 7,939,682 7,931,074 8,691,427 9,621,830
Net Bonded Debt
5,686,526 6,225,682 6,298,604 6,671,449 7,321,055 7,500,767 7,834,100 7,914,776 8,591,702 9,389,388
Ratio of Net Bonded Debt to Equalized Assessed Value
8.18 8.45 7.78 7.88 8.92 9.98 12.01 12.69 13.24 N/A (6)
Net Bonded Debt Per Capita (5)
1,963.57 2,149.74 2,174.92 2,303.66 2,715.93 2,782.60 2,906.26 2,936.19 3,187.31 3,483.23
165
Table 17
CITY OF CHICAGO, ILLINOIS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION DEBT
TO TOTAL GOVERNMENTAL EXPENDITURES
Last Ten Years (Amounts are in Thousands of Dollars)
Year Ended
December 31, Principal (2) Interest (3)
Ratio of
General Debt Service
Obligation Expenditures to
Debt Service Governmental Governmental Expenditures Expenditures Expenditures (1)
$ 201,865 $ 273,190
143,575 267,698
429,066 302,105
380,946 298,057
2010 336,378 319,423
129,303 369,880
305,879 475,906
218,918 399,794
446,749 442,705
326,556 501,721
$ 475,055 $ 6,274,363 7.6 %
411,273 6,098,521 6.7
731,171 6,839,389 10.7
679,003 6,269,395 10.8
655,801 6,334,422 10.4
499,183 6,621,207 7.5
781,785 6,563,846 11.9
618,712 6,333,175 9.8
889,454 7,172,394 12.4
828,277 7,389,669 11.2
The City issued bonds backed by a property tax levy on behalf of Community College District No. 508. The annual debt service related to the bonds is, as follows (in thousands): $5,443 in 2005-2006, $6,891 in 2007 and approximately $35,170 since 2008.
This includes G. O. Bonds, G. O. Notes, G. O. Certificates, G. O. Commercial Paper (CP), G. O. Line of Credit, (LOC), Other G. O. Debt, and City Colleges of Chicago Bonds. For FY 2015 the principal payments for LOC and CP were $743.3 million and $386.6 million, respectively.
For FY 2015, interest payments exclude Michael Reese Loan, Orange Line Lease, and Swap termination fees.
166
Table 18
CITY OF CHICAGO, ILLINOIS
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2015
(Amounts are in Thousands of Dollars)
Percentage of
City Net Direct Overlapping Net
of Chicago Long-term Bonded Debt
Direct Debt Debt (1) Debt (2) Applicable
City of Chicago G O. Bonds (3)
Board of Education
Chicago Park District
City Colleges of Chicago
Cook County
Cook County Forest Preserve District
Metropolitan Water Reclamation
District of Greater Chicago
Total Overlapping Debt
Net Direct and Overlapping Long-term Debt
$ 9,041,892 $ 9,041,892
6,152,448 840,460 245,995
3,362,052 168,620
2,655,365 13,424,940 $ 22,466,832
100.00 % 100.00 100.00 100.00
50.63
50.63
51.62
$ 9,041,892 6,152,448 840,460 245,995 1,702,207 85,372
1,370,699 10,397,181 $ 19,439,073
NOTES:
Source: Amount of Net Direct Debt was obtained from each of the respective taxing bodies.
Cook County Clerk's Office
Does not include outstanding General Obligation Commercial Paper Notes and Lines of Credit.
167
Table 19
CITY OF CHICAGO, ILLINOIS DEBT STATISTICS Last Ten Years
(Amounts are in Thousands of Dollars Except Where Noted)
2006 2007 2008 2009
Direct Debt $ 5,422,232 $ 5,805,921 $ 6,126,295 $ 6,866,270
Overlapping Debt 7,750,883 7,904,184 7,529,359 8,539,070
Total Debt $ 13,173,115 $ 13,710,105 $ 13,655,654 $ 15,405,340
Equalized
Assessed Valuation (1) $ 69,517,264 $ 73,645,316 $ 80,977,543 $ 84,685,258
Direct Debt Burden (2) 9.14% 8.35% 8.32% 8.48%
Total Debt Burden (2) 22.21% 19.72% 18.54% 19.02%
Estimated Fair Market
Value (FMV) (5) $ 329,770,733 $ 320,503,503 $ 310,888,609 $ 280,288,730
% of Direct Debt to FMV 1.64% 1.81% 1.97% 2.45%
% of Total Direct Debt to FMV 3.9.9% 4.28% 4.39% 5.50%
Population (3) 2,896,016 2,896,016 2,896,016 2,896,016
Direct Debt Per Capita (4) $ 1,872.31 $ 2,004.80 $ 2,115.42 $ 2,370.94
Total Debt Per Capita (4) 4,548.70 4,734.13 4,715.32 5,319.49
NOTES:
Source: Cook County Clerk's Office. Excludes portion of City in DuPage County and exemptions.
Due to the one-year lag in the Equalized Assessed Valuation, debt burden measures are computed utilizing the prior year's Assessed Valuation. The Assessed Valuation for 2005 is $59,304,530.
Source: U.S. Census Bureau.
Amounts are in dollars.
Source: The Civic Federation.
N/A means not available at time of publication.
168
2010 2011 2012 2013 2014 2015
$ 7,328,452 $ 7,628,222 $ 7,939,682 $ 7,670,298 $ 8,339,626 $ 9,041,892
9,158,243 9,877,084 10,384,421 10,338,490 10,113,429 10,397,181
$ 16,486,695 $ 17,505,306 $ 18,324,103 $ 18,008,788 $ 18,453,055 $ 19,439,073
82,087,170 8.65% 19.47%
75,122,914 9.29% 21.33%
65,250,387 10.57% 24.39%
62,363,876 11.76% 27.60%
64,908,057 13.37% 29.59%
N/A (6) 13.93% 29.95%
$ 231,986,397 3.16% 7.11%
$ 222,856,064 3.42% 7.85%
206,915,723 3.84% 8.86%
236,695,475 3.24% 7.61%
N/A (6) N/A (6) N/A (6)
N/A (6) N/A (6) N/A (6)
2,695,598 2,718.67 6,116.15
2,695,598 2,829.88 6,494.03
2,695,598 2,945.43 6,797.79
2,695,598 2,845.49 6,680.81
2,695,598 3,093.79 6,845.63
2,695,598 3,354.32 7,211.41
169
Table 20
CITY OF CHICAGO, ILLINOIS
REVENUE BOND COVERAGE
Last Ten Years Ended December 31, 2015
(Amounts are in Thousands of Dollars Except Where Noted)
Proprietary Funds
Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gross Revenues(1)
$ 1,422,873 1,550,299 1,602,668 1,516,939 1,768,225 1,767,722 1,935,020 2,020,371 2,306,308 1,297,862
Operating Expense (2)
$
779,168 856,550 913,499 887,676 911,935 937,233 967,517 969,551 1,042,605 621,647
Net Revenue Available for Debt Service
$
643,705 693,749 689,169 629,263 856,290 830,489 967,503 1,050,820 1,263,703 676,215
Interest
Debt Service Requirements
Principal
168,712 219,482 216,841 220,124 166,825 209,298 277,225 290,340 244,789
$ 210,891 (3) $ 397,341 $
416,810 438,553 369,379 379,185 306,916 479,277 494,226 569,475 375,322
Coverage
1.06 1.18 1.05 1.07 1.43 1.75 1.41 1.36 1.47 1.09
* Beginning in 2014, revenues are net of provision for doubtful accounts.
Tax Increment Financing Funds
Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gross Revenues (1)
$
400,404 509,238 557,596 495,588 474,390 544,415 487,495 427,287 410,018 366,264
Operating Expense (2)
$
124,905 238,757 296,469 185,947 229,266 266,916 361,783 334,414 567,079 349,066
Net Revenue Available for Debt Service
$ 275,499 270,481 261,127 309,641 245,124 277,499 125,712
92,873 (157,061)
17,198
Interest
31,553 48,514 58,292 28,740 28,431 31,796 29,136 27,721 30,963 24,089
Debt Service Requirements
Total
Principal
75,248 91,378 176,221 37,000 36,535 44,290 43,025 51,194 69,912 37,070
Coverage
2.58 1.93 1.11 4.71 3.77 3.65 1.74 1.18 (1.56) 0.28
170
Table 20 - Concluded
CITY OF CHICAGO, ILLINOIS
REVENUE BOND COVERAGE
Last Ten Years Ended December 31, 2015
(Amounts are in Thousands of Dollars Except Where Noted)
Sales Tax Funds
Net Revenue Debt Service Requirements
Available for
Year Debt Service (4) Principal Interest Total Coverage
$ 551,642 $ 1,955 $ 17,901 $ 19,856 27.78
570,927 8,550 17,781 26,331 21.68
548,571 9,135 16,385 25,520 21.50
503,952 425 ¦ 13,630 14,055 35.86
527,004 445 6,300 6,745 78.13
563,156 465 18,481 18,946 29.72
594,290 11,300 29,509 40,809 14.56
623,942 11,875 27,515 39,390 15.84
658,798 12,485 27,292 39,777 16.56
703,234 13,125 25,678 38,803 18.12
Motor Fuel Tax Funds
Net Revenue Available for Debt Service (4)
$ 68,776 $ 4,260 $ 8,056 $ 12,316 5.58
61,467 4,480 7,835 12,315 4.99
57,472 1,210 9,976 11,186 5.14
55,625 5,000 10,618 15,618 3.56
55,209 5,270 10,332 15,602 3.54
52,567 5,550 9,996 15,546 3.38
53,421 5,850 9,840 15,690 3.40
52,405 6,165 9,453 15,618 3.36
53,772 5,915 6,642 12,557 4.28
49,048 5,045 9,356 14,401 3.41
NOTES:
Total revenues include nonoperating revenues except for grants.
Total operating expenses excluding depreciation and amortization.
$446.3 million of Skyway principal was included even though that requirement was met through lease proceeds
Net Revenue Available for Debt Service will not tie to the revenues from Exhibit 4 since not all revenue is available for debt service.
171
Table 21
CITY OF CHICAGO, ILLINOIS
RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Years Ended December 31, 2015
(Amounts are in Thousands of Dollars Except Where Noted)
Governmental Funds
Net General Obligation
Debt
Tax Increment Allocation Bonds and Notes
Motor Fuel
and Sales Tax Revenue
Installment Water Purchase Capital Revenue Agreement Leases Bonds
Chicago O'Hare International
Airport Customer Facility Charge Revenue Bonds
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
5,789,477 6,296,225 6,308,684 6,721,880 7,379,877 7,750,122 7,939,682 7,931,074 8,272,246 9,236,376
351,776 285,363 204,811 179,871 156,881 125,201 106,241 80,127 69,995 60,660
512,585 499,555 552,345 559,417 553,702 770,312 753,162 735,122 725,395 735,882
9,200 7,500 5,500 3,500 1,200
278,861 245,685 207,065 169,282 177,011 166,787 163,012 171,673 116,858
1,169,224 1,195,803 1,464,838 1,424,319 1,711,615 1,677,851 1,988,655 1,954,020 2,381,770 2,391,395
248,750 248,750 248,750
NOTES:
See Table 13 for Estimated Fair Market Value
Amounts in Dollars
2015 information not available at time of publication.
Proprietary Fund Revenue Bonds
Chicago O'Hare International Airport Revenue Bonds
4,353,685 4,562,956 4,912,635 5,092,010 5,647,115 6,481,960 6,270,770 6,563,780 6,406,710 6,586,490
Chicago O'Hare International
Airport Passenger Facility Charge Revenue Bonds
5 796,715 766,255 725,675 709,200 816,110 797,769 750,706 683,780 682,271 631,245
Chicago Midway Airport
Revenue Bonds
1,268,764 1,254,664 1,239,404 1,246,190 1,465,495 1,439,185 1,383,215 1,470,343 1,506,325 1,506,325
Wastewater Transmission Revenue Bonds
770,528 754,908 902,904 • 878,875 1,100,800 1,084,224 1,334,918 1,333,984 1,602,175 1,686,178
Total Primary Government
15,300,815 15,868,914 16,523,861 16,984,544 19,009,806 20,293,411 20,690,361 21,172,653 22,012,495 23,083,301
Ratio of Bonded Debt to Estimated Fair Market Value (1)
5.40 4.81 5.16 5.46 6.78 8.75 9.28 10.23 9.30 N/A (3)
Per Capita (2)
5,283.40 5,479.57 5,705.72 5,864.80 7,052.17 7,528.35 7,675.61 7,854.53 8,166.09 8,563.33
173
This Page Intentionally Left Blank
174
Table 22
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR GENERAL LONG-TERM DEBT (1) December 31, 2015
Year Sales Tax and Motor Fuel Tax Tax Increment and Special
Ended General Obligation Debt Revenue Bonds Service Area Bonds Totals
Dec. 31, Principal Interest Principal Interest Principal Interest Principal Interest
2016 $ 248,801,761 $ 513,801,063 $ 17,880,000 $ 35,171,339 $ 10,640,000 $ 1,795,133 $ 277,321,761 $ 550,767,535
2017 272,291,947 502,586,429 18,250,000 34,274,439 11,795,000 1,566,376 302,336,947 538,427,244
2018 294,921,972 490,141,036 19,150,000 33,384,864 16,010,000 1,294,711 330,081,972 524,820,611
2019 306,743,700 476,199,190 20,334,654 32,445,039 6,020,000 959,730 333,098,354 509,603,959
2020 322,008,918 463,749,325 21,440,292 ,31,443,902 4,135,000 706,375 347,584,210 495,899,602
2021 325,772,240 448,582,341 22,567,526 30,424,017 4,375,000 493,625 352,714,766 479,499,983
2022 330,443,400 438,847,610 23,737,119 29,306,932 7,685,000 192,125 361,865,519 468,346,667
2023 322,818,319 423,842,612 25,039,882 28,133,993 - - 347,858,201 451,976,605
2024 312,662,012 408,763,903 26,401,683 26,898,758 - - 339,063,695 435,662,661
2025 307,208,971 394,783,743 27,843,447 25,598,506 - - 335,052,418 420,382,249
2026 320,966,163 381,001,088 29,361,159 24,229,666 - - 350,327,322 405,230,754
2027 342,104,720 359,856,152 28,708,425 25,126,142 - - 370,813,145 384,982,294
2028 351,684,806 350,276,483 32,523,716 21,438,475 - - 384,208,522 371,714,958
2029 374,594,515 330,945,272 22,679,282 31,359,338 - - 397,273,797 362,304,610
2030 387,797,520 315,030,503 25,039,348 29,170,834 - - 412,836,868 344,201,337
2031 502,118,596 293,127,612 24,327,530 30,067,997 - - 526,446,126 323,195,609
2032 453,513,762 248,490,217 25,253,712 29,322,918 - - 478,767,474 277,813,135
2033 479,086,194 222,919,494 26,759,422 28,504,592 - - 505,845,616 251,424,086
2034 507,382,377 194,690,621 42,955,951 14,855,559 - - 550,338,328 209,546,180
2035 322,322,607 162,364,914 45,359,513 12,742,989 - - 367,682,120 175,107,903
2036 268,101,559 144,489,958 47,932,886 10,474,295 - - 316,034,445 154,964,253
2037 267,567,925 128,876,917 50,648,085 8,080,578 - - 318,216,010 136,957,495
2038 278,021,380 112,997,953 36,629,151 5,555,080 - - 314,650,531 118,553,033
2039 290,235,000 66,214,977 36,615,000 3,753,000 - - 326,850,000 69,967,977
2040 290,555,000 48,415,307 38,445,000 1,922,250 - - 329,000,000 50,337,557
2041 307,605,000 31,341,080 .. 307,605,000 31,341,080
2042 101,745,000 13,254,033 .. 101,745,000 13,254,033
2043 108,170,000 6,829,854 .. 108,170,000 6,829,854
$ 8,997,245,364 $ 7,972,419,687 $ 735,882,783 $ 583,685,502 $ 60,660,000 $ 7,008,075 $ 9,793,788,147 $ 8,563,113,264
NOTE:
(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2016, have been excluded from this schedule because funds for their payment have been provided in the debt service funds.
175
Table 23
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR GENERAL OBLIGATION DEBT (1) December 31, 2015
Year Ended Dec. 31,
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Principal
191,446,761 208,381,947 227,616,972 238,428,700 246,568,918 257,802,240 263,938,400 275,423,319 282,802,012 300,263,971 313,301,163 341,429,720 350,969,806 373,744,515 387,797,520 502,118,596 453,513,762 479,086,194 507,382,377 322,322,607 268,101,559 267,567,925 278,021,380 290,235,000 290,555,000 307,605,000 101,745,000 108,170,000
Interest
484,833,881 476,578,364 467,383,811 456,964,665 448,098,541 436,836,765 430,696,444 419,217,514 406,588,686 393,919,556 380,489,176 359,735,998 350,192,536 330,899,678 315,030,503 293,127,612 248,490,217 222,919,494 194,690,621 162,364,914 144,489,958 128,876,917 112,997,953 66,214,977 48,415,307 31,341,080 13,254,033 6,829,854
Alternative Revenue Bonds (2) Principal Interest
$
46,220,000 52,665,000 55,955,000 59,215,000 66,340,000 58,870,000 57,405,000 38,295,000 20,760,000 6,945,000 7,665,000 675,000 715,000 850,000
Other General Obligation Debt
Interest
Principal
$ 11,135,000 11,245,000 11,350,000 9,100,000 9,100,000 9,100,000 9,100,000 9,100,000 9,100,000
$ 8,436,340,364 $ 7,831,479,055 $ 472,575,000 $ 118,345,836 $ 88,330,000 $ 22,594,796
NOTE:
The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2016, have been excluded from this schedule because funds for their payment have been provided in the debt service funds.
Alternative Revenue Bonds include General Obligation Bonds (Emergency Telephone System), Series 1999 and Series 2004, and General Obligation Bonds (Modern Schools Across Chicago Program) Series 2007A-K and 2010A/B.
176
Totals
Principal Interest
$ 248,801,761 $ 272,291,947 294,921,972 306,743,700 322,008,918 325,772,240 330,443,400 322,818,319 312,662,012 307,208,971 320,966,163 342,104,720 351,684,806 374,594,515 387,797,520 502,118,596 453,513,762 479,086,194 507,382,377 322,322,607 268,101,559 267,567,925 278,021,380 290,235,000 290,555,000 307,605,000 101,745,000 108,170,000
513,801,063 $ 502,586,429 490,141,036 476,199,190 463,749,325 448,582,341 438,847,610 423,842,612 408,763,903 394,783,743 381,001,088 359,856,152 350,276,483 330,945,272 315,030,503 293,127,612 248,490,217 222,919,494 194,690,621 162,364,914 144,489,958 128,876,917 112,997,953 66,214,977 48,415,307 31,341,080 13,254,033 6,829,854
762,602,824 774,878,376 785,063,008 782,942,890 785,758,243 774,354,581 769,291,010 746,660,931 721,425,915 701,992,714 701,967,251 701,960,872 701,961,289 705,539,787 702,828,023 795,246,208 702,003,979 702,005,688 702,072,998 484,687,521 412,591,517 396,444,842 391,019,333 356,449,977 338,970,307 338,946,080 114,999,033 114,999,854
$ 8,997,245,364 $ 7,972,419,687 $ 16,969,665,051
177
Table 24
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR PROPRIETARY FUNDS (1) December 31, 2015
Year Ended December 31,
Water Revenue Bonds
Principal
Wastewater Transmission Revenue Bonds
Principal
2016 $
2017
2018
2019
2025
2030
65,758,137 $ 67,985,820 70,380,924 78,435,983 81,590,644 90,130,509 94,029,068 97,895,684 102,657,501 104,226,902 94,922,625 98,797,786 112,265,571 116,911,030 118,519,216 89,900,182 83,267,023 86,464,219 90,280,586 88,836,109 90,945,000 85,650,000 89,620,000 77,395,000 81,035,000 43,530,000 45,705,000 21,590,000 22,670,000
122,692,145 120,482,058 118,136,633 110,083,202 107,049,713 98,324,425 94,522,507 90,498,494 86,181,179 82,028,651 77,400,809 72,848,502 68,049,226 62,999,689 57,660,758 52,422,617 48,001,853 43,830,577 39,508,408 35,005,908 30,405,689 25,609,597 20,988,588 15,946,126 11,415,896 6,674,750 4,498,250 2,213,000 1,133,500
46,426,585 46,988,418 51,445,886 53,903,999 49,529,406 49,299,758 51,181,743 53,318,720 55,547,132 68,242,407 52,412,225 54,437,167 56,506,962 63,749,289 66,977,761 69,819,457 73,106,911 75,068,471 78,390,624 81,310,000 85,330,000 80,485,000 84,585,000 77,130,000 59,225,000 31,955,000 33,525,000 17,685,000 18,595,000
77,342,420 81,653,583 79,479,834 77,058,900 81,861,936 82,134,031 80,302,725 78,214,140 76,023,949 63,431,463 79,179,256 77,157,628 74,995,862 52,573,387 49,238,445 45,682,633 41,888,468 37,894,597 33,714,141 29,331,158 24,678,771 19,954,343 15,245,506 10,645,474 6,716,893 4,214,125 2,627,125 1,371,875 464,875
$ 1,686,177,921 $ 1,385,077,543
NOTE:
1) For variable rate debt, interest has been calculated at the rate in effect or effective rate of a Swap Agreement, if applicable, as of December 31, 2015. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.
178
Chicago-O'Hare International Airport and Chicago Midway International Airport Bonds Principal
Interest
Year Ended December 31,
426,013,549 411,239,819 395,474,389 380,119,233 365,701,121 351,559,341 336,989,910 322,177,854 306,646,324 290,384,314 273,464,438 255,957,020 237,677,322 218,381,021 198,023,683 176,783,856 155,271,978 133,860,314 112,619,867 94,362,267 78,061,877 60,960,607 42,957,731 27,063,598 15,514,555 9,040,217 5,947,510 3,210,077 1,559,125 528,125
$ 244,690,000 $ 410,609,410 $
280,990,000 329,200,000 331,855,000 312,315,000 274,785,000 292,145,000 289,205,000 301,250,000 319,065,000 329,675,000 346,010,000 362,150,000 374,315,000 394,145,000 412,860,000 428,580,000 4*54,195,000 469,430,000 509,650,000 273,980,000 292,410,000 307,050,000 321,380,000 226,130,000 181,235,000 92,350,000 96,980,000 83,545,000 20,115,000 21,125,000
356,874,722 395,964,238 451,026,810 464,194,982 443,435,050 414,215,267 437,355,811 440,419,404 459,454,633 491,534,309 477,009,850 499,244,953 530,922,533 554,975,319 579,641,977 572,579,639 584,953,934 615,727,690 638,101,210 679,796,109 450,255,000 458,545,000 481,255,000 475,905,000 366,390,000 256,720,000 171,580,000 136,255,000 124,810,000 20,115,000 21,125,000
610,643,975 $ 967,518,697 2016
628,149,190 1,024,113,428 2017
608,856,286 1,059,883,096 2018
582,616,491 1,046,811,473 2019
569,030,882 1,012,465,932 2020
546,159,577 960,374,844 2021
526,384,573 963,740,384 2022
505,702,544 946,121,948 2023
484,382,982 943,837,615 2024
452,106,438 943,640,747 2025
446,964,379 923,974,229 2026
423,470,568 922,715,521 2027
399,002,108 929,924,641 2028
353,250,398 908,225,717 2029
325,280,224 904,922,201 2030
296,128,933 868,708,572 2031
266,674,177 851,628,111 2032
236,997,152 852,724,842 2033
207,082,863 845,184,073 2034
176,956,933 856,753,042 2035
149,446,727 599,701,727 2036
123,625,817 582,170,817 2037
97,194,701 578,449,701 2038
69,549,331 545,454,331 2039
45,196,387 411,586,387 2040
26,403,430 283,123,430 2041
16,165,592 187,745,592 2042
9,532,385 145,787,385 2043
4,808,452 129,618,452 2044
1,559,125 21,674,125 2045
528,125 21,653,125 2046
$ 8,972,810,000 $ 6,098,160,452 $ 13,050,383,440 $ 9,189,850,745 $ 22,240,234,185
179
Table 25
CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2015
Outstanding at December 31, 2015
Original Principal
Long-term debt is comprised of the following issues at December 31, 2015 (dollars in thousands):
General Long-term Debt: General Obligation Debt:
153,280 220,390 426,600 213,110 308,964 254,293 580,338 169,765 206,700 103,140 157,990 202,500 198,265
64,665 489,455 441,090 339,275 222,790 114,695
35,753 649,995 589,590
39,110 330,890 200,000 473,705 611,017 793,275 213,555 299,340 416,345 594,850 883,420 1,088,390
36,120 35,435 18,930 93,560 147,117 7,403 67,735 2,305 170,845 9,650 35,350 162,360 33,780 32,820 81,975 181,775 281,470 174,005 70,055 30,608 538,550 530,660 33,690 282,690 153,700 459,445 601,512 793,275 213,555 299,340 416,345 594,850 883,420 1,088,390
General Obligation Bonds (1):
Refunding Series of 1993 B - 4.25% to 5.125% $
Project and Refunding Series 1995 A-2 - 5.0% to 6.25%
Project and Refunding Series 1998 - 3.85% to 5.5%
. * Emergency Telephone System Refunding Series 1999 - 4.5% to 5.5%
City Colleges of Chicago Capital Improvement Project Series 1999 - 6.0%
Project Series 2000 A - 4.85% to 6.75%
Project and Refunding Series 2001 A - 4.0% to 5.65%
Project and Refunding Series 2002 A - 4.0% to 5.65%
Neighborhoods Alive 21 Program Series 2002 B - 5.0% to 5.5%
Neighborhoods Alive 21 Program Series 2003 - 2.0% to 5.25%
Project and Refunding Series 2003 A - 4.625% to 5.25%
Project and Refunding Series 2003 B - 5.0% to 5.5%
Project Series 2003 C and D - 2.0% to 5.25%
* Emergency Telephone System Series 2004 - 3.0% to 6.9%
Project and Refunding Series 2004 - 1.92% to 5.5%
Refunding Series 2005 A - 2.5% to 5.0%
Project and Refunding Series 2005 B and C - 3.5% to 5.0%
Variable Rate Demand Bonds Series 2005 D - 5.5%
Direct Access Bonds, Series 2005 - 2.876% to 4.5%
Direct Access Bonds, Series 2006 - 3.5% to 4.4%
Project and Refunding Series 2006 A and B - 3.5% to 5.375%
Project and Refunding Series 2007 A and B - 3.75% to 5.462%
City Colleges of Chicago Capital Improvement Project Series 2007 - 4.0% to 5.0%
Project and Refunding Series 2007 C and D - 4.0% to 5.44%
Project and Refunding Series 2007 E through G - 5.5%
Project and Refunding Series 2008 A and B - 3.0% to 5.765%
Project and Refunding Series 2008 C through E -1.0% to 6.05%
Project and Refunding Series 2009 A through D - 4.0% to 6.257%
Project Series 2010 B - 7.517%
Project Series 2010 C-1 - 7.781%
Project Series 2011 A and B - 4.625% to 6.034%
Project Series 2012 A and C - 4.0% to 5.432%
Project and Refunding Series 2014 A and B - 4.0% to 6.314%
General Obligation Series 2015 A and B - 5.0% to 7.75% _
Total General Obligation Bonds
$ 12,086,540 S 8,562,720
* Secured by alternate revenues.
Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2015
Outstanding at
Original December 31,
Principal 2015
Line of Credit:
Line of Credit-Variable Rate (5.43% at December 31, 2015) $ 239,131 $ 239,131
Total Line of Credit 239,131 239,131
Total General Obligation Bonds and Notes 12,325,671 8,801,851
General Obligation Certificates and Other Obligations (1):
** Building Acquisition Certificates (Limited Tax) Series 1997-4.4% to 5.4% $ 28,800 $ 6,430
Modern Schools Across Chicago Program - Series 2007 A through K - 3.6% to 5.0% 356,005 220,185
Modern Schools Across Chicago Program - Series 2010 A and B -. 3.0% to 5.364% 150,115 126,010
** MRL Financing LLC Promissory Note - 5.0% to 7.5% 91,000 81,900
Total General Obligation Certificates and Other Obligations 625,920 434,525
Total General Obligation Debt 12,951,591 9,236,376
Tax Increment Allocation Bonds and Notes (1):
Near North Tax Increment - Series 1999 A and B - 5.084% to 6.89% 55,000 22,300
Goose Island Redevelopment Tax Increment - Series 2000 - 7.45% 16,800 8,075
Pilsen Redevelopment Project-Series 2014 A and B-0.95% to 5.0% 33,410 30,285
Total Tax Increment Allocation Bonds and Notes 105,210 60,660
Motor Fuel Tax and Sales Tax Revenue Bonds (1):
Motor Fuel Tax Revenue Bonds - Series 2008 A and B - 4.0% to 5.0% 66,635 62,445
Motor Fuel Tax Revenue Bonds - Series 2013 - 2.0% to 5.0% 105,895 99,125
Motor Fuel Tax Revenue Bonds - Riverwalk TIFIA Loan - 3.33% 45,825 45,825
Sales Tax Revenue Bonds-Series 1998-4.5% to 5.5% 125,000 4,560
Sales Tax Revenue Bonds - Series 2002 - 4.23% 116,595 111,160
Sales Tax Revenue Refunding Bonds - Series 2005 - 3.25% to 5.0% 142,825 88,970
Sales Tax Revenue Refunding Bonds - Series 2009 - 4.25% to 6.0% 90,892 90,892
Sales Tax Revenue Refunding Bonds - Series 2011 - 4.375% to 5.504% 232,905 232,905
Total Motor Fuel Tax and Sales Tax Revenue Bonds 926,572 735,882
Total General Long-term Debt $ 13,983,373 $ 10,032,918
* Secured by alternate revenues.
** General Obligation Certificates and other obligations without property tax levy.
NOTE: (1) The balance outstanding at December 31, 2015 listed above for each bond series excluded amounts payable January 1, 2016, if applicable.
181
Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2015
Outstanding at Original December 31,
Principal 2015
Proprietary Fund Revenue Bonds: Water Revenue Bonds:
Refunding Series 1993 -4.125% to 6.5% $ 49,880 $ 5,565
Series 1997-3.9% to 5.25% 277,911 7,876
Series 2000 - 2nd Lien - 3.867% 100,000 100,000
Series 2000 - 4.375% to 5.875% 156,819 12,766
Series 2001 - 3.0% to 5.75% 353,905 80,800
Series 2004 - 2nd Lien - 3.867% 500,000 344,575
Series 2006A - 2nd Lien - 4.5% to 5.0% 215,400 179,635
Series 2008 - 2nd Lien - 4.0% to 5.25% 549,915 453,540
Series2010-2nd Lien-2.0%to6.742% 313,580 300,355
Series2012-2nd Lien-4.0%to5.0% 399,445 399,445
Series2014-2nd Lien-3.0%to5.0% 367,925 363,905
Illinois Environmental Protection Agency Loan - 2.905% 3,605 1,528
Illinois Environmental Protection Agency Loan - 2.57% 2,642 1,536
Illinois Environmental Protection Agency Loan -1.25% 6,000 4,917
Illinois Environmental Protection Agency Loan - 0.00% 9,077 7,294
Illinois Environmental Protection Agency Loan -1.25% 1,528 1,352
Illinois Environmental Protection Agency Loan -1.25% 1,502 1,330
Illinois Environmental Protection Agency Loan -1.25% 6,092 5,391
Illinois Environmental Protection Agency Loan - 2.29% 6,542 6,149
Illinois Environmental Protection Agency Loan -1.93% 39,421 37,849
Illinois Environmental Protection Agency Loan -1.93% 15,000 14,428
Illinois Environmental Protection Agency Loan -1.93% 47,000 46,101
Illinois Environmental Protection Agency Loan - 1.995% 15,058 15,058
Total Water Revenue Bonds 3,438,24~ 2,391,395"
Chicago-O'Hare International Airport Bonds:
Chicago-O'Hare International Airport Revenue Bonds:
Series of 2004 A through H - 3rd Lien - 3.49% to 5.35% 385,045 29,360
Series of 2005 A and B-3rd Lien-5.0% to 5.25% 1,200,000 143,215
Series of 2005 C and D - 3rd Lien - Variable Rate (.04% at December 31, 2014) 300,000 240,600
Series of 2006 A through D - 3rd Lien - 4.55% to 5.5% 156,150 30,280
Series of 2008 A through D - 3rd Lien - 4.0% to 5.0% 779,915 774,165
Series of 2010 A through F - 3rd Lien -1.75% to 6.845% 1,039,985 953,015
Series of 2011 A through C-3rd Lien-3.0% to 6.5% 1,000,000 983,120
Refunding Series of 2012 A through C - Senior Lien -1.0% to 5.0% 728,895 605,675
Refunding Series of 2013 A and B - Senior Lien - 2.0% to 5.25% 501,785 483,560
Series of 2013 C and D-Senior Lien-3.0% to 5.5% 396,120 396,120
Refunding Series of 2015 A and B - Senior Lien - 2.0% to 5.0% 1,620,180 1,620,180
Series of 2015 C and D-Senior Lien-3.625% to 5.0% 327,200 327,200
Total Chicago-O'Hare International Airport Revenue Bonds 8,435,275" 6,586,49"0~
182
Table 25 - Concluded CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2015
Outstanding at Original December 31,
Principal 2015
Proprietary Fund Revenue Bonds - Concluded:
Chicago-O'Hare International Airport Customer Facility Charge Revenue Bonds:
Series of 2013 A Senior Lien-4.125% to 5.75% $ 248,750 $ 248,750
Total Chicago-O'Hare International Airport Customer Facility Charge Revenue Bonds 248,750 248,750
Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds:
Refunding Series of 2008 A - 4.0% to 5.0% 111,425 24,465
Refunding Series of 2010 A through D - 2.0% to 6.322% 137,665 132,465
Refunding Series of 2011 A and B- 5.0% to 6.0% 46,005 46,005
Refunding Series of 2012 A and B-2.5% to 5.0% 452,095 428,310
Total Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds 747,190 631,245
Chicago Midway International Airport Revenue Bonds:
Series 1998A, Band C-4.3%to5.5% 397,715 31,530
Refunding Series 2004 A and B - 2nd Lien - 3.2% to 5.5% 77,565 49,350
Series 2004 C and D-2nd Lien-4.174% to 4.274% 152,150 136,475
Series 2010 B through D- 2nd Lien -3.532% to 7.168% 246,540 63,470
Refunding Series 2013 A through C - 2nd Lien - .74% to 5.5% 333,960 328,980
Series 2014 A through B-2nd Lien-5.0% 771,810 771,810
Refunding Series 2014C- Variable Rate (.07% at December 31, 2014) 124,710 124,710
Total Chicago Midway International Airport Revenue Bonds 2,104,450 1,506,325
Wastewater Transmission Revenue Bonds:
Refunding Series 1998 A-4.55% to 5.0% 62,423 35,168
Series 2001 - 2nd Lien - 3.5% to 5.5% 187,685 58,575
Refunding Series 2004 B - 2nd Lien - 3.0% to 5.25% 61,925 16,185
Series 2006 A and B - 2nd Lien - 4.5% to 5.0% 155,030 122,240
Series 2008 A - 2nd Lien - 4.0% to 5.5% 167,635 ' 150,485
Series 2008 C1 through C3-2nd Lien- 3.886% 332,230 332,230
Series2010-2nd Lien-2.0%to6.9% : 275,865 266,105
Series2012-2nd Lien-3.0%to5.0% 276,470 266,705
Series2014-2nd Lien-3.0%to5.0% 292,405 292,405
Series2015-2nd Lien-2.591%to6.042% 87,080 87,080
Illinois Environmental Protection Agency Loan - 2.5% 1,546 1,027
Illinois Environmental Protection Agency Loan - 0.00% 15,000 11,858
Illinois Environmental Protection Agency Loan-1.25% 17,564 15,952
Illinois Environmental Protection Agency Loan -1.25% 17,812 15,763
Illinois Environmental Protection Agency Loan -1.25% 15,000 14,400
Total Wastewater Transmission Revenue Bonds 1,965,670 1,686,178
Total Proprietary Fund Revenue Bonds $ 16,939,582 $ 13,050,383
183
Table 26
CITY OF CHICAGO, ILLINOIS POPULATION AND INCOME STATISTICS Last Ten Years
Median
33.5 33.7 34.1 34.5 34.8 33.2 33.2 33.5 33.9 N/A
Population(l) Age (2)
2,896,016 2,896,016 2,896,016 2,896,016 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598
Number of Households (2)
1,040,000 1,033,328 1,032,746 1,037,069 1,045,666 1,048,222 1,054,488 1,062,029 1,031,672 N/A
City Employment
,228,075 ,249,238 ,237,856 ,171,841 ,116,830 ,120,402 ,144,896 ,153,725 ,264,234 ,273,727
Unemployment Rate (3)
5.2 %
5.7
6.4 10.0 10.1
9.3
8.9
8.3
5.7
5.7
Per Capita Income (4)
$ 41,887 43,714 45,328 43,727 45,957 45,977 48,305 49,071 50,690 N/A (5)
Total Income
121,305,422,192 126,596,443,424 131,270,613,248 126,634,091,632 123,881,597,286 123,935,509,246 130,210,861,390 132,275,689,458 136,639,862,620 N/A (5)
NOTES:
Source: U.S. Census Bureau.
Source: American Fact Finder - United States Census Bureau data estimates. Data not available for 2015
Source: Bureau of Labor Statistics 2015, Unemployment rate for Chicago-Naperville-lllinois Metropolitan Area.
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Per Capita Personal Income for Chicago-Naperville-lllinois Metropolitan Area.
(5) N/A means not available at time of publication.
* December 2015 data.
184
Table 27
CITY OF CHICAGO, ILLINOIS
PRINCIPAL EMPLOYERS (NON-GOVERNMENT)
Current Year and Nine Years Ago (See Note at the End of this Page)
Employer
Advocate Health Care
University of Chicago
Northwestern Memorial Healthcare
JPMorgan Chase & Co. (2)
United Continental Holdings Inc
Health Care Service Corporation ..
Walgreens Boots Alliance Inc
Presence Health
Abbott Laboratories
Northwestern University
Jewel Food Stores, Inc
Northern Trust Corporation
Accenture LLP
SBC/AT&T (3)
American Airlines
Ford Motor Company
Bonded Maintenance Company
Bank of America
Number of
Employees
18,308 16,197 15,317 14,158 14,000 13,006 13,006 10,500 10,000 9,708
2015 (1)
Percentage of
Rank
1 2 3 4 5 6 7 8 9
10
Total City Employment
1.27 1.20 1.11 1.10 1.02 1.02 0.82 0.79 0.76
Number of
Employees
8,979 5,944
5,453 4,610 4,470 3,834 3,750 3,480 3,298 3,108
2006 (4)
Percentage of
Total City Rank Employment
3 4 5 6 7 8 9 10
0.82 % 0.55
0.50 0.42 0.41 0.35 0.34 0.32 0.30 0.29
NOTES:
Source: Reprinted with permission, Crain's Chicago Business [January 18, 2016], Crain Communications, Inc.
J. P. Morgan Chase formerly known as Banc One.
AT&T Inc. formerly known as SBC Ameritech.
Source: City of Chicago, Department of Revenue, Employer's Expense Tax Returns.
Prior to 2014, the source for information was the City of Chicago, Bureau of Revenue-Tax Division report, which is no longer available.
185
Table 28
CITY OF CHICAGO, ILLINOIS
FULL TIME EQUIVALENT CITY OF CHICAGO EMPLOYEES BY FUNCTION Last Ten Years (See Note at the End of this Page)
Budgeted Full Time Equivalent Positions
Function 2015 2014(2) 2013(2) 2012(2) 2011 2010 2009 2008 2007 2006
General
Government... 3,764 3,760 3,725 3,857 4,363 4,401 4,419 5,112 5,195 5,214
Public Safety 21,182 21,138 21,067 21,040 22,716 22,912 22,954 23,313 23,397 23,345
Streets and
Sanitation 2,341 2,341 2,351 2,302 2,576 2,605 3,087 3,648 3,609 3,578
Transportation... 1,297 1,171 932 929 980 1,022 718 819 829 862
Health 656 713 738 904 991 1,117 1,257 1,535 1,554 1,570
Cultural and
Recreational... 1,253 1,244 1,214 1,153 1,207 1,213 1,318 1,596 1,608 1,620
Business-type
Activities 3,636 3,679 3,528 3,559 3,615 3,619 3,666 3,898 4,015 4,108
Total 34,129 34,046 33,555 33,744 36,448 36,889 37,419 39,921 40,207 40,297
NOTES:
Source: City of Chicago 2015 Budget Overview, 2014 figures. Includes full time equivalent positions in grant related programs.
Per Office of Budget Management restated figures.
186
Table 29
CITY OF CHICAGO, ILLINOIS
OPERATING INDICATORS BY FUNCTION/DEPARTMENT Last Ten Years
Function/Program 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Police Physical
Arrests 112,996 129,166 143,618 145,390 152,740 167,355 181,254 196,621 221,915 227,576
Fire Emergency
Responses (1) 685,525 685,588 675,570 472,752 343,749 343,214 363,519 377,808 402,403 300,971
Refuse Collection Refuse Collected
(Tons per Day) 3,403 3,265 3,562 3,763 3,983 3,931 3,974 4,240 4,320 4,451
Cultural Volumes
in Library (2) 11,469 11,527 11,452 5,691 5,790 5,770 5,743 5,721 5,891 5,700
Water Average Daily Consumption (Thousands of
Gallons) 719,467 752,362 756,486 793,274 770,925 773,612 808,551 827,156 860,285 884,970
Notes: (1) In 2013, Office of Emergency Management and Communications implemented new system accounting for Administrative calls as well. (2) Beginning in 2013, Chicago Public Library utilizes new process to identify library holdings. Figures in thousands.
Table 30
CITY OF CHICAGO, ILLINOIS
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Years
Function 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Police Stations 25 25 25 25 26 25 25 25 25 25
Fire Stations 104 104 104 104 104 103 103 101 102 102
Other Public Works
Streets (Miles) 4,116 4,116 4,116 4,116 4,091 3,775 3,775 3,775 3,775 3,775
Streetlights 327,613 327,613 327,613 279,668 278,788 261,019 259,699 285,989 192,511 190,000
Traffic Signals 3,037 3,035 3,035 3,035 2,960 2,960 2,960 2,960 2,727 2,795
Water
Mains (Miles) 4,311 4,322 4,321 4,349 4,360 4,300 4,300 4,375 4,236 4,230
Sewers
Mains (Miles) 4,428 4,428 4,428 4,450 ¦ 4,400 4,400 4,400. 4,500 4,500 4,500
187
Table 31
CITY OF CHICAGO, ILLINOIS
INTEREST RATE SWAP COUNTERPARTY ENTITIES December 31, 2015
(Amounts are in Thousands of Dollars)
Counterparty
Associated Current Notional Credit Rating Counterparty City ATE
Bond Issue Amounts Moody's/S&P Entity Level (1)
Chicago Midway Airport 81,885 A3/A Goldman Sachs Baa1/BBB+
Revenue Bonds (Series 2004C&D) 54,590 Aa1/AA- Wells Fargo Baa2/BBB
Water Variable Rate Revenue
Refunding Bonds (Series 2004) 166,745 A1/A- Barclays (2) Baa3/BBB- (2)
Water Variable Rate Revenue
Refunding Bonds (Series 2004) 177,830 Aa2/AA- RBC BBB+/BBB+(3)
Second Lien Water Revenue
Refunding Bonds (Series 2000) 100,000 A1/A- Barclays (2) Baa3/BBB- (2)
Total $ 581,050"
Source: Survey of Derivative Instruments.
A counterparty may terminate its related interest rate swap if the City rating for the respective credit falls below the rating listed in the column City ATE Level by Moody's or Standard and Poor's.
In May 2015, the interest rate swaps for Water Variable Rate Revenue Refunding Bonds (Series 2004) and Second Lien Water Revenue Refunding Bonds (Series 2000) with UBS were transferred to Barclays and the ATE levels were lowered.
The ATE level for the Water Variable Rate Revenue Refunding Bonds (Series 2004) for the RBC swap was changed to BBB+ by Standard & Poor's or Fitch.
Certain swaps and swap overlays were terminated in 2015 and are no longer included in the chart above, see Note 10, for additional information.
188
Table 32
CITY OF CHICAGO, ILLINOIS
BANK FACILITIES
As of December 31, 2015
(Amounts are in Thousands of Dollars)
Bond Liquidity, Letters of Credit and Direct Purchase Facilities
Ratings Thresholds m
Issue
Midway 2nd Lien Midway 2nd Lien Midway 2nd Lien Midway 2nd Lien O'Hare 3rd Lien O'Hare 3rd Lien TIF Near North Water 2nd Lien Water 2nd Lien Rfdg Water 2nd Lien Rfdg Water 2nd Lien Rfdg
Series 2004 C-1 2004 C-2
D 2014 C
C 2005 D 1999 A 2000 2004-1 2004-2 2004-3
Principal Outstanding|109|56,490
$ 66,510
$ 13,475
$ 124,710
$ 140,600
$ 100,000
$ 27,000
$ 100,000
$ 152,690
$ 152,690
$ 39,195
Expiration or Termination
11/25/2016 11/25/2016 11/25/2016 11/25/2017 08/15/2017 08/15/2017 08/15/2016 10/30/2017 11/05/2018 11/05/2018 11/05/2018
Bond Maturity Date
01/01/2035 01/01/2035 01/01/2035 01/01/2044 01/01/2035 01/01/2035 01/01/2019 11/01/2030 11/01/2031 11/01/2031 11/01/2031
Bank
Bank of Montreal
Wells Fargo Bank of Montreal JPMorgan Citibank Barclays Bank of New York JPMorgan Bank of Tokyo State Street State Street
BBB-BBB-BBB-BBB-BBB
(2) N/A BBB-BBB-BBB-BBB-
BBB-BBB-BBB-BBB-BBB
(2)
N/A
BBB-
BBB-
BBB-
BBB-
Fitch Moody's S&P
Baa3 Baa3 Baa3 Baa3 Baa2
(2)
N/A
Baa3
Baa3
Baa3
Baa3
Commercial Paper (CP) Letters of Credit and Lines of Credit Providers
Ratings Thresholds(1)
Issue
G. O. Line of Credit G. O. Line of Credit G. O. Line of Credit Midway CP O'Hare CP O'Hare CP O'Hare CP O'Hare CP O'Hare CP Water
Series 2015 2015 2015 2003A-D 2005-A 2005-B 2005-C 2005-D 2005-E 2015
Borrowing Authority
250,000 250,000 250,000 85,000 75,000 50,000 50,000 50,000 50,000 125,000
Amount Outstanding
Expiration or
79,710 79,710 79,710
(Dec. 31, 2015) Termination
09/23/2017 09/23/2017 09/23/2017 07/12/2017 09/30/2016 09/30/2016 09/30/2016 09/30/2016 09/30/2016 10/15/2016
Bank
JPMorgan Bank of Montreal Bank of China JPMorgan JPMorgan Wells Fargo
PNC BMO/Harris BAML Morgan Stanley
Kroll
BBB- (3) BBB- (3) BBB- (3) BBB-BBB-N/A N/A N/A N/A BBB-
N/A N/A N/A Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 N/A
Fitch Moody's S&P
N/A N/A N/A N/A N/A N/A N/A
BBB-(3) BBB-(3) BBB-(3) BBB-(3) BBB-(3) BBB-(3)
BBB-BBB-BBB-BBB-BBB-BBB-BBB-
Notes:
An underlying rating by any rating agency for the related debt (or lowest rated lien of the related credit) below what is shown in the chart in the "Ratings Threshold" column would constitute an event of default under the agreements with the related banks
The agreement with Barclays provides that it is an event of default if (A) any two Rating Agencies then rating the Debt of the City payable from or secured by Pledged Revenues which is senior to or on parity with the Bonds shall have downgraded their rating on such Debt to or below "Baa2" (or its equivalent) or "BBB" (or its equivalent), respectively, or (B) any Rating Agency shall have downgraded its rating of any Debt of the City payable from or secured by the -Pledged Revenues which is senior to or on a parity with the Bonds to below "Baa3" (or its equivalent) or "BBB-" (or its equivalent), respectively, or suspended or withdrawn its rating of the same and such downgrade, suspension or withdrawal shall remain for a period of 180 days.
An underlying rating by two of the three rating agencies, S&P, Fitch or Kroll, would constitute an event of default under the agreements with the banks.
Certain series of bonds were converted to fixed rate and are no longer included in the chart above. See Note 10 for additional information.
189
This Page Intentionally Left Blank
190
SUPPLEMENT TO
CITY OF CHICAGO
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 3 K 2015
Rahm Emanuel, Mayor
Carole L. Brown, Chief Financial Officer Erin Keane, City Comptroller
This Page Intentionally Left Blank
Department of Finance city of chicago
June 30, 2016
To the Honorable Mayor Rahm Emanuel, Members of the City Council, and Citizens of the City of Chicago:
This report is a supplement to the Comprehensive Annual Financial Report of the City of Chicago for the year ended December 31, 2015.
The Comprehensive Annual Financial Report should be referenced for the following information:
Introductory Section.
Financial Section.
Statistical Section.
This supplemental report contains:
The Schedules of Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) for the General and Special Revenue Funds for the year ended December 31, 2015.
Erin Keane
City Comptroller
121 NORTH LASALLE STREET, SUITE 700, CHICAGO, ILLINOIS 60G02
Respectfully submitted,
SUPPLEMENT TO CITY OF CHICAGO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2015
Table of Contents
Letter of Transmittal 1
SUMMARIZED STATEMENTS
Schedule 1 General Fund - Schedule of Expenditures and Encumbrances -
Budget and Actual (Budgetary Basis) 3
Schedule 2 Special Revenue Funds - Schedule of Expenditures and Encumbrances -
Budget and Actual (Budgetary Basis) 18
Schedule 3 Special Revenue Funds - Federal, State and Local Grants
Combining Balance Sheet 32
Schedule 4 Special Revenue Funds - Federal, State and Local Grants
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance 34
Schedule 1
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
GENERAL GOVERNMENT
OFFICE OF THE MAYOR - 01 -
.0000-Personnel Services $ 5,550,657 $ 5,550,657 $ 5,863,090
.0100-Contractual Services 258,859 258,859 242,271
.0200-Travel 24,832 24,832 26,414
.0300-Commodities and Materials 40,000 40,000 13,409
Total 5,874,348 5,874,348 6,145,184
OFFICE OF THE INSPECTOR GENERAL - 03 -
.0000-Personnel Services 2,368,564 2,368,564 2,099,267
.0100-Contractual Services 328,990 328,990 293,643
.0200-Travel 4,433 4,433 4,164
.0300-Commodities and Materials 14,507 14,507 11,310
.0700-Contingencies 16,616 16,616 16,616
Total 2,733,110 2,733,110 2,425,000
OFFICE OF BUDGET AND MANAGEMENT - 05 -
.0000-Personnel Services 1,643,364 1,643,364 2,178,661
.0100-Contractual Services 49,295 49,295 27,532
.0200-Travel 1,000 1,000 234
.0300-Commodities and Materials 5,800 5,800 2,709
Total 1,699,459 1,699,459 2,209,136
8,408,173 19,087,722 3,894 27,585
8,408,173 19,087,722 3,894 27,585
7,778,176 18,826,281 1,232 16,543
DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities and Materials _
Total 27,527,374 27,527,374 26,622,231
CITY COUNCIL COMMITTEES CITY COUNCIL - 15-
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0700-Contingencies
2005.0982-Order of The City Council
2005.9008-Aldermanic Expense Allowance
2005.9010-Legal, Technical, Medical and Professional
Services, Appraisals, Consultants, Printers, Court
Reporters and Contractual Services:
To Be Expended Under the Direction of the
Chairman of the Committee on Finance
15,314,737 15,314,737 15,054,288
70,150 70,150 69,739
1,000 1,000
43,000 43,000 42,642
1,000 1,000
4,850,000 4,850,000 4,463,663
92,072 92,072 90,896
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY COUNCIL COMMITTEES - Continued
CITY COUNCIL - 15 - Concluded
2005.9072-Contingent and Other Expenses for Corporate Purposes not Otherwise Provided for: To Be Expended Under Direction of the President
Pro Tempore of the City Council $ 4,000 $ 4,000 $ -
Total 20,375,959 20,375,959 19,721,228
COMMITTEE ON FINANCE -15 -
2010.0000-Personnel Services
2010.0100-Contractual Services
2010.0200-Travel
2010.0300-Commodities and Materials
2010.0700-Contingencies
The Payment of Legal Fees Pursuant to Sec. 2-152-170 of the Municipal Code:
To Be Expended at the Direction
of the Committee on Finance
Legal Assistance to The City Council:
To Be Expended at the Direction of the
Chairman of the Committee on Finance
2010.9010-Legal, Technical, Medical and Professional Services, Appraisals, Consultants, Printers, Court Reporters and Contractual Services: To Be Expended at the Direction of the
Chairman of the Committee on Finance
Total
COUNCIL OFFICE OF FINANCIAL ANALYSIS -15-
1,765,784 1,765,784 1,692,783
138,400 138,400 118,534
8,000 8,000
51,500 51,500 50,962
100 100
50,000 50,000
50,000 50,000
92,500 92,500 92,042
2,156,284 2,156,284 1,954,321
2012.0000-Personnel Services
2012.0700-Contingencies
Total
258,924 258,924 51,931
25,000 25,000 -_
283,924 283,924 51,931
LEGISLATIVE INSPECTOR GENERAL
2015.0100-Contractual Services
Total
354,000 354,000 406,688
354,000 354,000 406,688
COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS-15-
2214.0000-Personnel Services
2214.0100-Contractual Services
2214.0300-Commodities and Materials
2214.0400-Equipment
468,750 468,750 566,328
15,000 15,000 14,640
12,000 12,000 11,990
9,500 9,500 8,707
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
GENERAL GOVERNMENT - Continued CITY COUNCIL COMMITTEES - Continued
Original Budget
Final Budget
COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS -15 - Concluded
2214.0700-Contingencies $ 15,000 $ 15,000 $ 14,999
Total 520,250 520,250 616,663
COMMITTEE ON AVIATION - 15 -
2220.0000-Personnel Services 102,843 102,843 103,722
2220.0100-Contractual Services 200 200
2220.0300-Commodities and Materials 500 500
2220.0700-Contingencies 750 750 -
Total 104,293 104,293 103,722
COMMITTEE ON LICENSE AND CONSUMER PROTECTION - 15-
2225.0000-Personnel Services 102,081 102,081 159,427
2225.0100-Contractual Services 7,500 7,500 4,702
2225.0300-Commodities and Materials 10,500 10,500 499
Total 120,081 120,081 164,628
COMMITTEE ON PUBLIC SAFETY - 15 -
2235.0000-Personnel Services 119,289 151,680 169,576
2235.0100-Contractual Services 1,000 1,000 976
2235.0300-Commodities and Materials 1,000 1,000 995
2235.0700-Contingencies 500 500 474
Total 121,789 154,180 172,020
COMMITTEE ON HEALTH AND ENVIROMENTAL PROTECTION - 15-
2240.0000-Personnel Services 87,670 87,670 91,632
2240.0100-Contractual Services 200 200
2240.0300-Commodities and Materials 800 800
2240.0700-Contingencies 500 500 -
Total 89,170 89,170 91,632
COMMITTEE ON COMMITTEES, RULES AND ETHICS - 15-
2245.0000-Personnel Services 100,008 100,008 107,818
2245.0100-Contractual Services 40,000 40,000 39,860
2245.0300-Commodities and Materials 500 500 451
Total 140,508 140,508 148,128
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) . Year Ended December 31, 2015
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY COUNCIL COMMITTEES - Continued
COMMITTEE ON ECONOMIC, CAPITAL AND TECHNOLOGY DEVELOPMENT -15 - Concluded
2255.0000-Personnel Services
2255.0100-Contractual Services
2255.0300-Commodities and Materials
2255.0700-Contingencies
Total
COMMITTEE ON EDUCATION AND CHILD DEVELOPMENT-15-
2260.0000-Personnel Services
2260.0100-Contractual Services
2260.0700-Contingencies
Total
COMMITTEE ON ZONING, LANDMARKS AND BUILDING STANDARDS -15 -
2275.0000-Personnel Services
2275.0100-Contractual Services
2275.0300-Commodities and Materials
Total
COMMITTEE ON HOUSING AND REAL ESTATE - 15 -
2280.0000-Personnel Services
2280.0100-Contractual Services
2280.0300-Commodities and Materials
2280.0700-Contingencies
Total
COMMITTEE ON HUMAN RELATIONS -15 -
2286.0000-Personnel Services
2286.0300-Commodities and Materials
Total
COMMITTEE ON WORKFORCE DEVELOPMENT AND AUDIT - 15-
2290.0000-Personnel Services
2290.0100-Contractual Services
2290.0300-Commodities and Materials
Total
$ 107,635 $ 97,635 $ 99,194
1,000 1,000
500 500 461
1,000 1,000 999
110,135 100,135 100,655
200,609 155,609 103,801
3,000 3,000 1,054
2,000 2,000 2,000
205,609 160,609 106,856
305,134 305,134 279,001
5,300 5,300 9,307
74,700 74,700 74,700
385,134 385,134 363,008
192,406 192,406 198,153
1,550 1,550 1,550
400 400 400
2,150 2,150 1,761
196,506 196,506 201,865
88,098 88,098 89,795
1,000 1,000 436
89,098 89,098 90,230
479,312 479,312 457,333
30,000 30,000 991
5,000 5,000 5,000
514,312 514,312 463,324
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY COUNCIL COMMITTEES - Concluded
CITY COUNCIL LEGISLATIVE REFERENCE BUREAU-15-
2295.0000-Personnel Services $ 282,081 $ 329,081 $ 260,276
2295.0100-Contractual Services 67,000 20,000 18,574
2295.0300-Commodities and Materials 4,000 4,000 1,572
Total 353,081 353,081 280,422
TOTAL CITY COUNCIL COMMITTEES.. 26,120,133 26,097,524 25,037,320
CITY CLERK - 25 -
.0000-Personnel Services 2,501,124
.0100-Contractual Services 585,644
.0300-Commodities and Materials 56,277
Total 3,143,045
DEPARTMENT OF FINANCE - 27 -City Comptroller
2011.0000-Personnel Services 2,880,864
2011.0100-Contractual Services 52,153
2011.0200-Travel 3,851
2011.0300-Commodities and Materials 20,000
Total 2,956,868
DEPARTMENT OF FINANCE - 27 -Accounting and Financial Reporting
2012.0000-Personnel Services 3,464,804
2012.0100-Contractual Services 752,748
2012.0200-Travel 3,000
2012.0300-Commodities and Materials 16,600
Total 4,237,152
DEPARTMENT OF FINANCE - 27 -Financial Strategy and Operations
2015.0000-Personnel Services 5,588,041
2015.0100-Contractual Services 1,051,237
2015.0200-Travel 3,000
2015.0300-Commodities and Materials 88,900
2015.0400-Equipment -90,000
Total 6,821,178
2,501,124 585,644 56,277
3,143,045
2,880,864 52,153 3,851 20,000
2,956,868
3,464,804 752,748 3,000 16,600
4,237,152
5,588,041 1,051,237 3,000 88,900 90,000
6,821,178
2,434,670 489,823 42,748 2,967,241
2,716,884 33,337 1,118 7,932 2,759,272
3,793,345 547,727 2,479 13,177 4,356,727
5,342,934 770,976
36,656
6,150,567
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Budget
Final Budget
GENERAL GOVERNMENT - Continued
DEPARTMENT OF FINANCE -Revenue Services and Operations - 27 -
2020.0000-Personnel Services $
2020.0100-Contractual Services
2020.0200-Travel
2020.0300-Commodities and Materials _
Total _
TOTAL FINANCE
22,756,771 31,822,172 13,000 251,854 54,843,797
68,858,995
22,756,771 31,822,172 13,000 251,854
54,843,797
68,858,995
20,024,695 27,671,690 1,324 214,803
47,912,512
61,179,078
CITY TREASURER-28-
.0000-Personnel Services 1,930,570
.0100-Contractual Services 429,375
.0200-Travel 500
.0300-Commodities and Materials 6,500
Total 2,366,945
DEPARTMENT OF ADMINISTRATIVE HEARINGS - 30 -
.0000-Personnel Services 2,958,151
.0100-Contractual Services 4,977,604
0200-Travel 2,000
.0300-Commodities and Materials 27,620
Total 7,965,375
DEPARTMENT OF LAW - 31 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities and Materials _
Total 27,917,131
DEPARTMENT OF HUMAN RESOURCES - 33 -
.0000-Personnel Services 4,564,679
.0100-Contractual Services 464,676
.0200-Travel 3,060
.0300-Commodities and Materials 42,725
.0900-Purposes as Specified 210,000
Total 5,285,140
DEPARTMENT OF PROCUREMENT SERVICES - 35 -
.0000-Personnel Services 5,270,435
.0100-Contractual Services 1,124,235
.0200-Travel 11,490
1,930,570 429,375 500 6,500
2,366,945
2,958,151 4,977,604 2,000 27,620
7,965,375
24,657,596 3,022,195 97,860 139,480 27,917,131
4,564,679 464,676 3,060 42,725 210,000 5,285,140
5,270,435 1,124,235 11,490
1,718,791 407,113
6,498
2,132,401
2,901,957 4,860,952 718 24,433
7,788,060
24,320,377 2,875,269 83,859 131,107 27,410,613
4,672,772 353,875 1,725 24,406 209,985 5,262,763
5,076,057 869,694 3,131
|1010|Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Budget
Final Budget
GENERAL GOVERNMENT - Continued
DEPARTMENT OF PROCUREMENT SERVICES - 35 - Concluded
.0300-Commodities and Materials $
Total —
DEPARTMENT OF FLEET AND FACILITIES MANAGEMENT - 38 -
BUREAU OF FINANCE AND ADMINISTRATION - 38 -
2103.0000-Personnel Services
2103.0100-Contractual Services
2103.0300-Commodities and Materials
Total
BUREAU OF FACILITY MANAGEMENT - 38 -
2126.0000-Personnel Services
2126.0100-Contractual Services
2126.0200-Travel
2126.0300-Commodities and Materials
Total
BUREAU OF ASSET MANAGEMENT - 38 -
2131.0000-Personnel Services
2131.0100-Contractual Services
2131.0200-Travel
2131.0300-Commodities and Materials
2131.9100-Purposes as Specified
Total
BUREAU OF FLEET OPERATIONS - 38 -
2140.0000-Personnel Services
2140.0100-Contractual Services
2140.0200-Travel
2140.0300-Commodities and Materials
Total
TOTAL DEPARTMENT OF FLEET AND
FACILITIES MANAGEMENT
2,926,357 641,693 53,000
3,621,050
30,639,324 24,725,139 35,000 2,332,272
57,731,735
3,085,550 13,934,213 2,419 37,542,961 512,777 55,077,920
31,264,993 13,454,886 10,000 11,397,166
56,127,045
172,557,750
2,926,357 641,693 53,000
3,621,050
30,639,324 24,725,139 35,000 2,332,272
57,731,735
3,085,550 13,934,213 2,419 37,542,961 512,777 55,077,920
31,264,993 13,454,886 10,000 11,397,166
56,127,045
172,557,750
2,747,222 605,193 49,760
3,402,175
25,962,708 23,744,149 9,908 2,309,334
52,026,100
2,982,112 13,524,450 280
28,542,012 1,551,117 46,599,971
29,970,839 13,313,088 9,787 11,342,895 54,636,610
156,664,856
|10 10|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued '
BOARD OF ELECTION COMMISSIONERS -ELECTION AND ADMINISTRATION DIVISION - 39 -
2005.0000-Personnel Services $ 14,414,370 $ 14,414,370 $ 15,076,374
2005.0100-Contractual Services 10,594,887 10,594,887 13,086,687
2005.0200-Travel 50,500 50,500 50,500
2005.0300-Commodities and Materials 496,200 496,200 496,200
Total 25,555,957 25,555,957 28,709,762
COMMISSION ON HUMAN RELATIONS - 45 -
2005.0000-Personnel Services 1,052,997 1,052,997 970,386
2005.0100-Contractual Services 59,776 59,776 64,799
2005.0200-Travel.. 1,541 1,541 609
2005.0300-Commodities and Materials 3,518 3,518 1,598
Total 1,117,832 1,117,832 1,037,392
MAYOR'S OFFICE FOR PEOPLE WITH DISABILITIES-48-
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
DEPARTMENT OF FAMILY AND SUPPORT SERVICES ADMINISTRATION - 50 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
.9253-Early Childhood Education Program
.9254-Violence Reduction Program
.9255-Homeless Services for Youth
9259-Summer Program
.9260-After School Program
.9261-Children Advocacy Center
.9262-Earn Income Tax Credit
.9263-Homeless Services
Total
1,042,707 82,542 12,403 9,539
1,147,191
4,024,060 749,609 2,800 28,040 15,075,000 2,000,000 1,540,979 15,451,803 14,322,801 900,000 1,050,000 6,564,876
61,709,968
1,042,707 82,542 12,403 9,539
1,147,191
4,024,060 749,609 2,800 28,040 15,075,000 2,000,000 1,540,979 15,451,803 14,322,801 900,000 1,050,000 6,564,876
61,709,968
973,265 63,807 8,212 920
1,046,203
3,767,854 644,839 1,700 11,592 12,947,199 1,963,843 1,540,979 15,322,483 14,248,593 900,000 1,050,000 6,424,632
58,823,714
10
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
DEPARTMENT OF PLANNING AND DEVELOPMENT - 54 -
2005.0000-Personnel Services $ 9,750,094 $ 9,750,094 $ 9,382,385
2005.0100-Contractual Services 3,428,676 3,428,676 3,196,893
2005.0200-Travel 5,848 5,848 2,803
2005.0300-Commodities and Materials 40,923 40,923 16,090
2005.0400-Equipment 15,575 15,575 4,170
.0938-For the Funding of the City's Contribution to
the Low Income Housing Trust Fund 3,500,000 3,500,000 3,500,000
.9110-Property Management,
Maintenance and Security 100,000 100,000 6,107
.9183-Foreclosure Prevention Program 200,000 200,000 200,000
.9211-Single-Family Troubled Building Initiative 150,000 150,000 150,000
.9212-Multi-Family Troubled Building Initiative 150,000 150,000 150,000
.9213-Affordable Housing Density Program 18,482,000 18,482,000 11,892,603
.9224-Micro Market Recovery Program 772,700 772,700 772,700
Total 36,595,816 36,595,816 29,273,750
POLICE BOARD - 55 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
329,136 329,136 284,716
98,219 98,219 69,982
500 500
1,100 1,100 690
428,955 428,955 355,388
LICENSE APPEAL COMMISSION - 77 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0300-Commodities and Materials
Total
BOARD OF ETHICS - 78 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
67,017 67,017 69,302
102,100 102,100 82,309
500 500 468
169,617 169,617 152,078
753,920 753,920 762,418
82,082 82,082 38,892
6,725 6,725 2,442
3,210 3,210 2,463
845,937 845,937 806,214
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0300-Commodities and Materials
0912-For Payment of Bonds
.0931-For Payment of Non-Tort Judgements
414,022,408 414,022,408 417,772,659
62,501,142 62,523,751 60,585,696
1,319,360 1,319,360 830,199
15,906,550 15,906,550 12,503,124
6,377,742 6,377,742 10,749,018
11
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Budget
Final Budget
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF FINANCE - GENERAL - 99 - Concluded .0934-For Claims for Damages and Liabilities Against
the City when Ordered Paid by the City Council $ 200,000 $
.0939-Reimbursement of Condominium and
Cooperative Garbage Fees 3,000,000
.0991-To Provide Matching and Supplementary Grant
Funds Currently in Effect as well as New Grants 5,083,558
.9027-For the City Contribution to Social Security Tax 770,758
.9076-City's Contribution to Medicare Tax 36,507,277
.9121-Lobbyist on Behalf of the City of Chicago 480,000
.9165-For Expenses Related to the Data Center 2,062,356
.9176-West Nile Virus Program 425,000
.9180-For World Business Chicago Program 1,200,000
.9257-Community Policing 1,500,000
.9258-Manufacturing Innovation Project 11,300
.9635-To Reimburse Midway Fund for Fire
Department Salaries 2,745,402
.9636-To Reimburse Midway Fund for Fire
Department Benefits 1,487,458
.9638-For Corporate Subsidy of Chicago Public
Library 7,511,000
.9980 Municipal Fund Pension Allocation 77,898,364
.9981 Laborers Fund Pension Allocation 4,440,671
.9982 Policemen's Fund Pension Allocation 50,691,603
.9983 Firemen's Fund Pension Allocation 7,190,046
Total 703,331,995 _
TOTAL GENERAL GOVERNMENT 1,189,384,083
200,000 $
3,000,000
5,249,558 770,758 36,507,277 480,000 2,062,356 425,000 1,200,000 1,500,000 11,300
2,745,402
1,487,458
7,608,000 77,898,364
4,440,671 50,691,603
7,190,046
703,617,604
1,189,647,083
133,453
2,999,573
3,811,327 635,849 35,055,239 349,331 2,062,356 349,956 1,200,000 1,196,951 11,300
2,745,402
1,487,458
6,500,000 13,889,000
50,691,603 7,190,000
632,749,494
1,084,763,052
HEALTH
DEPARTMENT OF PUBLIC HEALTH - 41 -
.0000-Personnel Services 14,280,561 14,280,561 14,059,140
.0100-Contractual Services 10,042,767 10,042,767 8,212,631
.0200-Travel 32,892 32,892 26,402
.0300-Commodities and Materials 858,790 858,790 732,089
.0445-Equipment 7,920 7,920
.9018-A.I.D.S. - Outreach: To Be Expended by the Commissioner of the Health Department
Under the Direction of the Budget Director 627,500 627,500 627,500
.9129-For Supplementary Funding for HIV/AIDS Related Programs Administered by the Department of Health
at the Direction of the Budget Director 3,657,000 3,657,000 3,551,466
Total 29,507,430 29,507,430 27,209,228
12
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
HEALTH - Concluded
TOTAL HEALTH $ 29,507,430 $ 29,507,430 $ 27,209,228
PUBLIC SAFETY
INDEPENDENT POLICE REVIEW AUTHORITY - 56 -
2005.0000-Personnel Services 8,181,587
2005.0100-pontractual Services 235,123
2005.0200-Travel 4,050
2005.0300-Commodities and Materials 31,250
Total 8,452,010
DEPARTMENT OF POLICE - 57 -
1005.0000-Personnel Services 1,323,720,525
1005.0100-Contractual Services 6,570,850
1005.0200-Travel 308,670
1005.0300-Commodities and Materials 3,637,462
1005.0400-Equipment 36,250
1005.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel and Budget Director 19,844,350
1005.0937-For Cost and Administration of Hospital and Medical Expenses for Employees Injured on Duty Who Are Not Covered Under
Workers Compensation Act 19,000,000
1005.9067-For Physical Exams 1,096,113
Total 1,374,214,220
OFFICE OF EMERGENCY MANAGEMENT AND COMMUNICATIONS - 58-
.0000-Personnel Services 61,282,832
.0100-Contractual Services 16,089,043
.0200-Travel 98,400
.0300-Commodities and Materials 1,655,263
.0401-Tools Less Than or Equal to $100/Unit 41,850
.0423-Communication Devices 26,702
Total . 79,194,090
FIRE DEPARTMENT - 59 -
0000-Personnel Services 531,779,082
.0100-Contractual Services 6,533,468
.0200-Travel 50,900
.0300-Commodities and Materials 2,795,185
8,181,587 235,123 4,050 31,250
8,452,010
1,323,720,525 6,570,850 308,670 3,637,462 36,250
19,844,350
19,000,000 1,096,113 1,374,214,220
61,282,832 16,089,043 98,400 1,655,263 41,850 26,702 79,194,090
531,779,082 6,533,468 50,900 2,795,185
7,460,513 162,112 2,666 18,130
7,643,421
1,308,215,748 6,506,234 124,693 3,279,933 36,200
25,863,175
20,072,733 773,617 1,364,872,332
62,962,709 14,871,852 106,766 1,542,593 45,641 26,700 79,556,259
540,851,868 5,718,320 34,009 2,569,139
13
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Budget
Final Budget
PUBLIC SAFETY - Concluded
FIRE DEPARTMENT - 59 - Concluded
.0400-Equipment $ 123,000 $
.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel and Budget Director 2,702,000
.0937-For Cost and Administration of Hospital and Medical Expenses for Employees Injured on Duty Who Are Not Covered Under
Workers Compensation Act 9,000,000
.9067-For Physical Exams 1,080,000 _
Total 554,063,635 _
DEPARTMENT OF BUILDINGS - 67 -
.0000-Personnel Services 17,326,856
.0100-Contractual Services 3,603,292
.0200-Travel 155,000
.0300-Commodities and Materials 43,120
.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel 300,000
.0989-For Refunds for Cancelled Voucher Warrants and Payroll Checks and for Refunding Duplicate
Payments and Payments Made in Error 150,000
Total 21,578,268 _
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
.0000-Personnel Services 13,020,311
.0100-Contractual Services 4,812,082
0200-Travel 57,074
.0300-Commodities and Materials 140,234
Total 18,029,701
COMMISSION ON ANIMAL CARE AND CONTROL - 73 -
.0000-Personnel Services 4,423,020
.0100-Contractual Services 728,260
0200-Travel 480
.0300-Commodities and Materials 445,079
Total 5,596,839
TOTAL PUBLIC SAFf.TY 2,061,128,763
123,000 $
2,702,000
9,000,000 1,080,000
554,063,635
17,326,856 3,603,292 155,000 43,120
300,000
150,000
21,578,268
13,020,311 4,812,082 57,074 140,234
18,029,701
4,423,020 728,260 480 445,079
5,596,839
2,061,128,763
108,074
7,322,058
6,570,465 177,714
563,351,647
16,961,812 3,493,727 142,394 33,591
127,900
149,973
20,909,397
12,055,524 4,199,201 9,411 76,740
16,340,876
4,183,157 663,540
434,140
5,280,837
2,057,954,769
14
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2015
Original Budget
Final Budget
STREETS AND SANITATION
COMMISSIONER'S OFFICE - 81 -
2005.0000-Personnel Services $
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
2005.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel and Budget Director
Total _
COMMISSIONER'S OFFICE -ADMINISTRATIVE SERVICES DIVISION - 81 -
2006.0000-Personnel Services
2006.0100-Contractual Services
2006.0200-Travel
2006.0300-Commodities and Materials
2006.0440-Machinery and Equipment
Total _
BUREAU OF SANITATION - 81 -
2020.0000-Personnel Services
2020.0100-Contractual Services
2020.0200-Travel
2020.0300-Commodities and Materials
2020.0400-Equipment
Total _
BUREAU OF STREET OPERATIONS - 81 -
2045.0000-Personnel Services
2045.0100-Contractual Services
2045.0200-Travel
2045.0300-Commodities and Materials
2045.0400-Equipment
Total _
BUREAU OF FORESTRY - 81 -
2060.0000-Personnel Services
2060.0100-Contractual Services
2060.0200-Travel
2060.0300-Commodities and Materials
2060.0400-Equipment
Total
TOTAL STREETS AND SANITATION
1,348,147 224,205 500 8,700
540,000
2,121,552
4,403,729 46,928 550 9,600 100
4,460,907
102,806,607 51,054,788 1,495 219,845 113,493
154,196,228
17,934,267 2,227,586 100 190,025 26,350 20,378,328
12,912,489 1,432,135 32,250 107,344 13,780 14,497,998
195,655,013
1,348,147 224,205 500 8,700
540,000
2,121,552
4,403,729 46,928 550 9,600 100
4,460,907
102,806,607 51,054,788 1,495 219,845 113,493
154,196,228
17,934,267 2,227,586 100 190,025 26,350 20,378,328
12,912,489 1,432,135 32,250 107,344 13,780 14,497,998
195,655,013
1,175,447 219,520
7,767
485,538
1,888,272
2,733,438 43,448
8,238
2,785,124
99,368,186 64,620,716
203,953 108,450
164,301,305
18,350,402 2,227,057
171,749 18,657 20,767,865
13,632,264 1,511,139 2,879 97,970 3,014
15,247,266
204,989,832
15
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final
Budget Budget Actual
TRANSPORTATION
OFFICE OF THE COMMISSIONER - 84 -
2105.0000-Personnel Services
2105.0100-Contractual Services
2105.0200-Travel
2105.0300-Commodities and Materials
2105.0931-For the Payment of Tort and Non-Tort Judgements, Outside Counsel Expenses and Expert Costs, as Approved by the
Corporation Counsel
Total
DIVISION OF ADMINISTRATION - 84 -
2115.0000-Personnel Services
2115.0100-Contractual Services
2115.0200-Travel
2115.0300-Commodities and Materials
Total
$ 1,906,528 $ 1,906,528 $ 1,884,411
177,540 177,540 145,382
5,200 5,200 126
12,600 12,600 8,433
1,890,000 1,890,000 742,515
3,991,868 3,991,868 2,780,867
4,944,103 4,944,103 4,285,827
579,374 579,374 493,741
1,300 1,300 378
23,600 23,600 21,813
5,548,377 5,548,377 4,801,759
DIVISION OF TRAFFIC SAFETY - 84 -
2130.0000-Personnel Services 810,635 810,635 683,439
2130.0100-Contractual Services 16,680,290 16,680,290 16,670,223
2130.0200-Travel 700 700 8
2130.0300-Commodities and Materials 13,300 13,300 (19,314)
Total 17,504,925 17,504,925 17,334,355
DIVISION OF SIGN MANAGEMENT- 84 -
2140.0000-Personnel Services 2,918,171 2,918,171 2,634,219
2140.0100-Contractual Services 54,380 54,380 25,170
2140.0300-Commodities and Materials 552,883 '552,883 511,466
Total 3,525,434 3,525,434 3,170,854
DIVISION OF PROJECT DEVELOPMENT - 84 -
2145.0000-Personnel Services 3,278,100 3,278,100 3,243,595
2145.0100-Contractual Services 868,794 868,794 743,113
2145.0200-Travel 8,800 8,800 7,634
2145.0300-Commodities and Materials 33,580 33,580 15,232
2145.9042-Ex-Offender/Re-Entry Initiatives 250,000 250,000 250,000
Total 4,439,274 4,439,274 4,259,574
DIVISION OF ELECTRICAL OPERATIONS - 84 -
2150.0000-Personnel Services 7,931,418 7,931,418 6,568,630
2150.0100-Contractual Services 605,754 605,754 461,413
2150.0200-Travel 43,600 43,600 6,271
2150.0300-Commodities and Materials 538,155 538,155 495,704
Total 9,118,927 9,118,927 7,532,018
16
Schedule 1 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Budget
Final Budget
TRANSPORTATION - Concluded
DIVISION OF IN-HOUSE CONSTRUCTION - 84 -
2155.0000-Personnel Services $
2155.0100-Contractual Services
2155.0200-Travel
2155.0300-Commodities and Materials
2155.0400-Equipment
Total
TOTAL TRANSPORTATION _
PRINCIPAL RETIREMENT
2005.9540 - Payment of General Obligation Certificate
TOTAL PRINCIPAL RETIREMENT _
INTEREST AND OTHER FISCAL CHARGES
2005.9540-lnterest on General Obligation Certificate ...
TOTAL INTEREST AND OTHER
FISCAL CHARGES _
TOTAL GENERAL FUND $
11,565,807 325,797
11,400 316,137
15,325
11,565,807 325,797
11,400 316,137
15,325
11,284,402 287,035
15,020 293,002
12,234,466
12,234,466
10,913
56,363,271
56,363,271
11,890,372
1,930,000
1,930,000
51,769,800
1,930,000
1,930,000
1,930,000
451,440
451,438
1,930,000
451,440
451,438
451,440
451,440
3,534,420,000 $ 3,534,683,000 $ 3,429,068,119
17
Schedule 2
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2015
Original Budget
Final Budget
VEHICLE TAX FUND
GENERAL GOVERNMENT CITY COUNCIL COMMITTEES -15 -
COMMITTEE ON TRANSPORTATION AND PUBLIC WAY
2230.0000-Personnel Services
2230.9000-Purposes as Specified
Total
COMMITTEE ON PEDESTRIAN AND TRAFFIC SAFETY
2265.0000-Personnel Services
2265.0300-Commodities and Materials
Total
TOTAL CITY COUNCIL COMMITTEES
CITY CLERK - 25 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities and Materials
.9400-lnternal Transfers and Reimbursements
Total
DEPARTMENT OF FINANCE - 27 -FINANCIAL STRATEGY AND OPERATIONS
2015.0000-Personnel Services
Total
REVENUE SERVICES AND OPERATIONS
2020.0000-Personnel Services
2020.0100-Contractual Services
2020.0300-Commodities and Materials
Total
TOTAL DEPARTMENT OF FINANCE
DEPARTMENT OF LAW - 31 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities and Materials
.9400-lnternal Transfers and Reimbursements
Total
416,667 16,387
433,054
210,000 5,000
215,000
648,054
4,131,633 2,229,834
23,940 420,250
36,500
6,842,157
488,115
488,115
442,460 5,600 396
448,456
936,571
1,141,817 93,465 6,224 6,094 861
1.248,461
396,667 36,387
433,054
197,609 40,000
237,609
670,663
4,131,633 2,229,834
23,940 420,250
36,500
6,842,157
488,115
488,115
442,460 5,600 396
448,456
936,571
1,141,817 93,465 6,224 6,094 861
1,248,461
395,092 36,387
431,479
198,080 5,000
203,080
634,559
3,500,728 2,091,157 6,256 335,939 35,833
5,969,914
498,765
498,765
452,708 279.00
452,987
951,752
1,028,526 89,090 3,008 5,728 861
1,127.213
18
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
VEHICLE TAX FUND - Continued
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -
2126.0100-Contractual Services
2126.0300-Commodities and Materials
2131.0100-Contractual Services
2131.0300-Commodities and Materials
Total
DEPARTMENT OF BUILDINGS - 67 -
.0000-Personnel Services
.0100-Contractual Services
.0300-Commodities and Materials
Total
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0912- For Payment of Bonds
2005.0931-Tort and Non-Tort Judgments, Outside
Counsel and Expert Costs
2005.0934-Claims for Damage and Liability
2005.0989-Refunds for Cancelled Voucher Warrants and Payroll
Checks and Duplicate Payments and Payments Made in Error.. 2005.0991-Provide for Matching and Supplementary Grants Funds
Currently in Effect as well as New Grants
2005.9027-City's Contribution to Social Security Tax
2005.9076-City's Contribution to Medicare Tax
2005.9551-Fund's Share of Retroactive Pension Payments
To Reimburse Corporate Fund for Pension Payments..
To Reimburse the Corporate Fund for Indirect Costs
Chargeable to Fund
2005.9774- Transfer for Services provided by the Office of
Emergency Management and Communications
Total
TOTAL GENERAL GOVERNMENT
STREETS AND SANITATION
$ 797,961 $ 797,961 $ 686,458
26,000 26,000 24,440
1,868,488 1,868,488 1,736,025
13,971,354 13,971,354 10,333,261
16,663,803 16,663,803 12,780,184
469,039 469,039 243,625
43,500 43,500 4,632
3,008 3Tj08 2,731
515,547 515,547 250,988
24,772,157 24,772,157 28,112,685
4,653,274 4,630,665 4,095,062
1,005,905 1,005,905
2,000 2,000 1,000
1,375,000 1,375,000 816,812
765,000 765,000 717,605
657,700 657,700 . 622,816
17,019 17,019 17,019
983,302 983,302 983,302
38,607 38,607
12,111,503 12,111,503 12,111,503
16,235,000 16,235,000 16,235,000
33,000 33,000 33,000
62,649,467 62,626,858 63,745,804
89,504,060 89,504,060 85,460,413
BUREAU OF SANITATION - 81 -2020.0000-Personnel Services 2020.0100-Contractual Services
5,697,134 2,836,015
5,697,134 2,836,015
6,428,206 2,815,813
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2015
Original Final Actual
Budget Budget
VEHICLE TAX FUND - Continued
STREETS AND SANITATION - Concluded
BUREAU OF SANITATION - 81 - Concluded
2020.0300-Commodities and Materials $ 18,700 $ 18,700 $ 17,531
2020.0400-Equipment 28,640 28,640 27,524
Total 8,580,489 8,580,489 9,289,074
BUREAU OF STREET OPERATIONS - 81 -
2045.0000-Personnel Services 3,999,263 3,999,263 3,213,169
2045.0100-Contractual Services 2,257,096 2,257,096 2,230,712
2045.0200-Travel 100 100
2045.0300-Commodities and Materials 321,155 321,155 309,813
2045.0400-Equipment 35,700 35,700 22,419
2045.9400-lnternal Transfers and Reimbursements 6,000 6,000 6,000
Total 6,619,314 6,619,314 5,782,113
BUREAU OF TRAFFIC SERVICES - 81 -
2070.0000-Personnel Services 13,542,194 13,542,194 13,450,121
2070.0100-Contractual Services 8,916,245 8,916,245 8,741,990
2070.0300-Commodities and Materials 233,620 233,620 215,792
2070.0989-Refunds for Cancelled Voucher Warrants and Payroll Checks and for Refunding Duplicate Payments and Payments
Made in Error 700,000 700,000 691,900
2070.0992-For Tow Storage Refund 97,000 97,000 80,095
2070.9400-lnternal Transfers and Reimbursements 41,350 41,350 41,350
Total 23,530,409 23,530,409 23,221,248
TOTAL STREETS AND SANITATION 38,730,212 38,730,212 38,292,435
TRANSPORTATION
DIVISION OF ENGINEERING - 84 -
2125.0000-Personnel Services 6,671,900 6,671,900 6,210,103
2125.0100-Contractual Services 742,687 742,687 598,130
2125.0200-Travel 45,378 45,378 53,166
2125.0300-Commodities and Materials 35,606 35,606 19,495
Total 7,495,571 7,495,571 6,880,894
DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -
2135.0000-Personnel Services 4,573,589 4,573,589 3,929,565
2135.0100-Contractual Services 4,689,129 4,689,129 3,523,970
2135.0200-Travel 138,934 138,934 69,793
2135 0300-Commodities and Materials.' 37,167 37,167 32,940
2135.9400-lnternal Transfers and Reimbursements 4,000 4,000 4,000
Total 9,442,819 9,442,819 7,560,268
20
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2015
Original Final Actual
Budget Budget
VEHICLE TAX FUND - Concluded
TRANSPORTATION - Concluded
DIVISION OF ELECTRICAL OPERATIONS - 84 -
2150.0000-Personnel Services $ 16,821,568 $ 16,821,568 $ 16,064,054
2150.0100-Contractual Services 1,115,708 1,115,708 1,047,710
2150.0200-Travel 107,560 107,560 120,854
2150.0300-Commodities and Materials 745,800 745,800 698,939
2150.0400-Equipment 4,450 4,450 3,513
Total 18,795,086 18,795,086 17,935,070
DIVISON OF IN-HOUSE CONSTRUCTION - 84 -
2155.0000-Personnel Services 39,441,946 39,441,946 38,334,324
2155.0100-Contractual Services 779,658 779,658 625,774
2155.0200-Travel 14,925 14,925 10,922
2155.0300-Commodities and Materials 806,723 806,723 636,249
2155.9064-For the Restoration of Curbs, Gutters,
Sidewalks and Pavement 75,000 75,000 74,562
2155.9481-For Services Provided by
the Department of Streets and Sanitation 35,000 35,000 30,450
Total 41,153,252 41,153,252 39,712,281
TOTAL TRANSPORTATION 76,886,728 76,886,728 72,088,513
TOTAL VEHICLE TAX FUND 205,121,000 205,121,000 195,841,361
MOTOR FUEL TAX AND PROJECT FUND
GENERAL GOVERNMENT OFFICE OF THE MAYOR - 01 -
2005.0000-Personnel Services 259,998 259,998 405,474
TOTAL OFFICE OF THE MAYOR 259,998 259,998 405,474
OFFICE OF BUDGET AND MANAGEMENT - 05 -
2005.0000-Personnel Services 282,732 282,732 196,768
TOTAL OFFICE OF BUDGET AND MANAGEMENT 282,732 282,732 196,768
21
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
MOTOR FUEL TAX AND PROJECT FUND - Concluded
GENERAL GOVERNMENT - Concluded
FLEET AND FACILITY MANAGEMENT - 38 -
2131.0300-Commodities and Materials $ 22,645,667 $ 22,645,667 $ 22,645,667
2140.0000-Personnel Services 4,271,545 4,271,545 3,146,608
2140.0100-Contractual Services 3,341,822 3,341,822 3,340,370
2140-Commodities and Materials 1,200,000 1,200,000 1,200,000
TOTAL FLEET AND FACILITY MANAGEMENT 31,459,034 31,459,034 30,332,645
FINANCE GENERAL-99-
2005.0000-Personnel Services 8,484 8,484
2005.0100-Contractual Services 500,000 500,000 512,649
9500.Reserved for Excess Expense Related to Snow Events 7,000,000 7,000,000 3,637,332
2005.9600-Reimbursements 6,714,442 6,714,442 6,714,442
TOTAL FINANCE GENERAL 14,222,926 14,222,926 10,864,423
TOTAL GENERAL GOVERNMENT 46,224,690 46,224,690 41,799,310
STREETS AND SANITATION - 81 -
2047.0000-Personnel Services 3,289,453 3,289,453 4,424,228
2047.0100-Contractual Services 1,436,565 1,436,565 1,426,628
2047.0300-Commodities and Materials 12,403,991 12,403,991 12,396,897
TOTAL STREETS AND SANITATION 17,130,009 17,130,009 18,247,753
TRANSPORTATION - 84 -
2005.91 OO-C.T.C./Regional Transportation Authority Agreement 3,000,000 3,000,000 3,000,000
2150.0300-Commodities and Materials 2,102,124 2,102,124 2,101,990
2155.0000-Personnel Services 6,165,518 6,165,518 4,947,059
2155.0100-Contractual Services 1,075,000 1,075,000 1,096,575
2155.0300-Commodities and Materials 4,630,442 4,630,442 4,576,728
TOTAL TRANSPORTATION 16,973,084 16,973,084 15,722,352
TOTAL MOTOR FUEL TAX AND PROJECT FUND 80,327,783 80,327,783 75,769,415
22
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
PENSION FUND
EMPLOYEE PENSIONS
MUNICIPAL EMPLOYEES' ANNUITY AND BENEFIT FUND
2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund $ 242,700,000 $ 242,700,000 $ 151,870,167
Total 242,700,000 242,700,000 151,870,167
POLICEMEN'S EMPLOYEES' ANNUITY AND BENEFIT FUND
2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund 194,122,000 420,000,000 198,642,942
Total 194,122,000 420,000,000 198,642,942
FIREMEN'S EMPLOYEES' ANNUITY AND BENEFIT FUND
2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund 96,300,000 199,000,000 114,990,237
Total 96,300,000 199,000,000 114,990,237
LABORERS' EMPLOYEES' ANNUITY AND BENEFIT FUND
2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund 24,019,000 24,019,000 14,077,254
Total 24,019,000 24,019,000 14,077,254
TOTAL EMPLOYEE PENSIONS 557,141,000 885,719,000 479,580,600
TOTAL PENSION FUND 557,141,000 885,719,000 479,580,600
MISCELLANEOUS FUND
EMERGENCY COMMUNICATION
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0100-Contractual Services 100,000 100,000
2005.9639-For Oper. of the Emer Management and Comm 108,174,000 108,174,000 109,636,330
Total 108,274,000 108,274,000 109,636,330
TOTAL EMERGENCY COMMUNICATION 108,274,000 108,274,000 109,636,330
23
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
MISCELLANEOUS FUND - Continued SPECIAL DEPOSIT ACTIVITIES
CHICAGO PARKING METERS
GENERAL GOVERNMENT
FINANCE - GENERAL - 99 -
2005.xxxx $ 8,198,000 $ 8,198,000 $ 8,197,774
Total 8,198,000 8,198,000 8,197,774
TOTAL CHICAGO PARKING METERS 8,198,000 8,198,000 8,197,774
PUBLIC SAFETY
DEPARTMENT OF POLICE - 57 -
2005.9999-Miscellaneous 13,785,000 13,785,000 6,171,420
Total 13,785,000 13,785,000 6,171,420
TOTAL SPECIAL DEPOSIT ACTIVITIES 21,983,000 21,983,000 14,369,194
COMMONWEALTH EDISON SETTLEMENT GENERAL GOVERNMENT OFFICE OF THE MAYOR-01 -
2005.9999-Miscellaneous 275,000 275,000 248,117
Total 275,000 275,000 248,117
TOTAL COMMONWEALTH SETTLEMENT 275,000 275,000 248,117
ALLIED SETTLEMENT FUND GENERAL GOVERNMENT DEPARTMENT OF LAW - 31 -
2005.9999-Miscellaneous 1,000,000 1,000,000 870,406
Total 1,000,000 1,000,000 870,406
DEPARTMENT OF PROCUREMENT SERVICES - 35 -
2005.9999-Miscellaneous 2,742,000 2,742,000 365,792
Total 2,742,000 2,742,000 365,792
TOTAL ALLIED SETTLEMENT 3,742,000 3,742,000 1,236,198
24
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Actual
Final Budget
Original Budget
MISCELLANEOUS FUND - Concluded
CTA REAL PROPERTY TRANSFER TAX
FINANCE GENERAL - 99 -
2005.9205-For Distribution of the Net Proceeds of the Real Property
Transfer Tax-CTA Portion $ 62,790,000 $ 62,790,000 $ 74,723,965
2005.9640-To Reimburse Corporate Fund for Costs Incurred for
Collection of the Real Property Transfer Tax-CTA Portion 634,000 634,000
Total 63,424,000"" 63,424,000~ 74,723,965~
TOTAL CTA REAL PROPERTY TRANSFER TAX 63,424,000 63,424,000 74,723,965
TOTAL MISCELLANEOUS FUND 197,698,000 197,698,000 200,213,804
LIBRARY FUND
GENERAL GOVERNMENT
DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -
2005.0000-Personnel Services 1,152,936 1,152,936 1,088,118
Total 1,152,936 1,152,936 1,088,118
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -
BUREAU OF FACILITY MANAGEMENT
2126.0000-Personnel Services 1,408,450. 1,408,450 1,215,909
2126.0100-Contractual Services 6,787,770 6,787,770 6,172,759
2126.0300-Commodities and Materials 481,000 481,000 420,925
Total 8,677,220 8,677,220" 7,809,59T
BUREAU OF ASSET MANAGEMENT -38-
2131.0100-Contractual Services 1,735,165 1,735,165 1,708,969
2131.0300-Commodities and Materials 2,802,902 2,802,902 2,755,742
Total 4,538,067 4,538,067 4,464,711
BUREAU OF FLEET OPERATIONS -38-
14,100
2140.0100-Contractual Services 37,485 37,485
14,100
2140.0300-Commodities and Materials 15,000 15,000
Total 52485" 52485~
TOTAL DEPARTMENT OF FLEET AND
FACILITY MANAGEMENT 13,267,772 13,267,772 12,288.404
25
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
LIBRARY FUND - Concluded
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services $ 11,304,453 $ 11,304,453 $ 11,777,570
2005.0100-Contractual Services 387,327 387,327 80,711
2005.0955-lnterest on Daily Tender Notes 725,932 725,932 98,479
2005.9027-City's Contribution to Social Security Tax 14,500 14,500 14,500
2005.9076-City's Contribution to Medicare Tax 837,747 837,747 837,747
2005.9112-Property Maintenance Contract for the
Harold Washington Library Center 6,999,186 6,999,186 6,999,179
2005.9165 -For Expenses Related to the Data Center 131,558 131,558 118,708
2005.9155-Fund's Share of Retroactive Pension Payments 129,943 129,943
2005.9980-Municipal Fund Pension Allocation 2,515,976 2,515,976
Total 23,046,622 23,046,622 19,926,894
TOTAL GENERAL GOVERNMENT 37,467,330 37,467,330 33,303,416
CHICAGO PUBLIC LIBRARY - 91 -
2005.0000-Personnel Services 50,453,513 50,550,513 49,486,177
2005.0100-Contractual Services 3,006,485 3,006,485 2,880,007
2005.0300-Commodities and Materials 556,890 556,890 549,675
2005.9438-Department of General Services 70,782 70,782 70,782
Total 54,087,670 54,184,670 52,986,641
TOTAL LIBRARY FUND 91,555,000 91,652,000 86,290,057
SPECIAL EVENTS, TOURISM AND FESTIVALS FUND MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX
GENERAL GOVERNMENT
OFFICE OF THE MAYOR - 01 -
2005.0000-For Personnel Services 541,254 541,254 520,714
Total 541,254 541,254 520,714
CITY COUNCIL COMMITTEE ON SPECIAL EVENTS AND CULTURAL AFFAIRS-15-
2155.0000-Personnel Services 146,000 146,000 144,945
2155.0300-Commodities and Materials 8,720 8,720 3,061
Total 154,720 154,720 148,006
26
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
SPECIAL EVENTS, TOURISM AND FESTIVALS FUND - Continued MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX - Concluded GENERAL GOVERNMENT - Concluded
Original Budget
Final Budget
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services $
2005.0100-Contractual Services
2005.0991-To Provide for Matching and Supplementary
Grant Funds
2005.0912-For Payment of Bonds
2005.9027-City's Contribution to Social Security Tax
2005.9076-City's Contribution to Medicare Tax
2005.9124-For the Sisters City Program
2005.9551-Fund's Share of Retroactive Pension Payments
2005.9610-To Reimburse Corporate Fund for Pension
2005.9700-Reimbursable Transfers Between Funds
Total ~
TOTAL GENERAL GOVERNMENT _
CULTURAL AND RECREATIONAL
1,309,740 $ 4,792,676
208,500 750,000 1,455 84,099 528,643 646 1,009,508 2,469,260
11,154,527
11,850,501
1,309,740 $ 4,792,676
208,500 750,000 1,455 84,099 528,643 646 1,009,508 2,469,260
11,154,527
¦ 11,850,501
1,044,096 4,108,451
116,000 750,000 1,455 84,099 528,643
1,009,508 2,389,260
10,031,512
10,700,232
DEPARTMENT OF CULTURAL AFFAIRS - 23 -
2015.0000-Personnel Services 6,436,254 6,436,254 6,072,875
2015.0100-Contractual Services 3,066,600 3,066,600 2,855,197
2015.0200-Travel 10,500 ' 10,500 1,257
2015.0300-Commodities and Materials 95,000 95,000 84,250
2015.9188-For Expenses Related to the Operations of
Millennium Park 6,195,000 6,195,000 6,195,000
2015.9288-For Expenses Related to the Programming for
Millennium Park 190,000 190,000 171,060
2015.9219-lmplementation of Cultural Plan 1,250,000 1,250,000 1,250,000
2015.9800-For Special Events Projects 12,926,145 12,926,145 12,970,534
Total 30,169,499 30,169,499 29,600,173
TOTAL CULTURAL AND RECREATIONAL 30,169,499 30,169,499 29,600,173
TOTAL MUNICIPAL HOTEL OPERATORS'OCCUPATION TAX 42,020,000 42,020.000 40,300,405
27
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
SPECIAL EVENTS, TOURISM AND FESTIVALS FUND - Concluded
DEPARTURE TAX
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE - 27 -
2003.0100-Contractual Services $ 572,328 $ 572,328 $ 572,328
Total 572,328 572,328 572,328
DEPARTMENT OF AVIATION - 85 -
2005.0000-Personnel Services 770,994 770,994 770,994
Total 770,994 770,994 770,994
TOTAL GENERAL GOVERNMENT 1,343,322 1,343,322 1,343,322
PUBLIC SAFETY
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
2005.0000-Personnel Services 204,589 204,589 204,589
Total 204,589 204,589 204,589
TOTAL PUBLIC SAFETY 204,589 204,589 204,589
TOTAL DEPARTURE TAX 1,547,911 1,547,911 1,547,911
TOTAL SPECIAL EVENTS, TOURISM
AND FESTIVALS FUND 43,567,911 43,567,911 41,848,316
HEALTH AND WELFARE FUND SROIMPROVEMENT
DEPARTMENT OF PLANNING AND DEVELOPMENT- GENERAL - 54 -
2005.9999-Miscellaneous 1,740,000 1,740.000
Total 1,740,000 1,740,000
TOTAL SRO IMPROVEMENT 1,740,000 1,740,000
MISCELLANEOUS
2005 9999-Miscellaneous 74,000 74,000
Total 74,000 74,000
TOTAL MISCELLANEOUS 74,000 74,000
28
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
HEALTH AND WELFARE FUND - Concluded NORFOLK SOUTHERN GENERAL GOVERNMENT
DEPARTMENT OF PLANNING AND DEVELOPMENT- GENERAL - 54 -
2005.9999-Miscellaneous $ 459,953 $ 459,953 $ 459,953
Total 459,953 459,953 459,953
TOTAL GENERAL GOVERNMENT 459,953 459,953 459,953
TOTAL NORFOLK SOUTHERN 459,953 459,953 459,953
TOTAL HEALTH AND WELFARE FUND 2,273,953 2,273,953 459,953
SPECIAL TAXING AREA
GENERAL GOVERNMENT
DEPARTMENT OF BUDGET & MANAGEMENT - 05 -
.0000-Personnel Services 166,977 166,977
Total 166,977 166,977
DEPARTMENT OF FINANCE - 27 -
2012.0000-Personnel Services 333,846 333,846
2012.0100-Contractual Services 250,000 250,000
2015.0000-Personnel Services 75,675 75,675
Total 659,521 659,521
DEPARTMENT OF THE CITY TREASURER - 28 -
.0000-Personnel Services 85,020 85,020
Total 85,020 85,020
DEPARTMENT OF LAW - 31 -
.0000-Personnel Services 1,136,644 1,136,644
Total 1,136,644 1,136,644
DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT - 54 -
.0000-Personnel Services 3,692,586 3,692,586
2012.0100-Contractual Services 229,203 229,203
.9000-General 125,000 125,000
Total 4,046,789 4,046,789
29
Schedule 2 - Concluded CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2015
Original Final Actual
Budget Budget
SPECIAL TAXING AREA - Concluded GENERAL GOVERNMENT - Concluded
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
.9400-Specific Purpose - General $ 375,000 _$ 375,000 _$
Total 375,000 375,000 ~~
FINANCE GENERAL - 99 -
.0000-Personnel Services 138,704 138,704
.0100-Contractual Services 240,200 240,200
.9500 Fund's Share of Retroactive Pension Payments 1,932 1,932
.9610-General 813,385 813,385
.9610-To Reimburse the Corporate Fund for Indirect Costs
Chargeable to Fund 999,000 999,000
.9668 To Reimburse Corporate Fund for Healthcare and Insurance
Costs 1,486,828 1,486,828
Total 3,680,049 3,680,049
TOTAL GENERAL GOVERNMENT 10,150,000 10,150,000
TOTAL SPECIAL TAXING AREA 10,150,000 10,150,000
TOTAL SPECIAL REVENUE FUNDS $ 1,187,834,647 $ 1,516,509,647 $ 1,080,003,506
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Schedule 3
CITY OF CHICAGO, ILLINOIS
SPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTS COMBINING BALANCE SHEET December 31, 2015
With Comparative Totals for December 31, 2014 (Amounts are in Thousands of Dollars)
General Governmenl Health
Public Safety
Transportation
ASSETS:
Cash and Cash Equivalents $-$-$-$
Investments 2,946 3,585 3,777 3,737
Restricted Assets - Cash and Cash Equivalents
Receivables (Net of Allowances) 1,334 62 1,023 54
Due from Other Funds 16,554 1,744 - 3,492
Due from Other Governments 305 33,352 28,776 249,400
Other Assets - - - -
Total Assets $ 21,139 $ 38,743 $ 33,576 $ 256,683
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 290 $ 20,160 $ 7,191 $ 47,697
Bonds, Notes and Other Obligations Payable - Current ...
Due to Other Funds 30,413 16,769 15,184 185,294
Accrued and Other Liabilities 1,997 389 26 634
Unearned Revenue 6,204 5,978 9,109 18,968
Total Liabilities $ 38,904 $ 43,296 $ 31,510 $ 252,593
Deferred Inflows:
Deferred Inflows 74 8,472 18,790 187,288
Fund Balance (Deficit):
Restricted ...
Unassigned (17,839) (13,025) (16,724) (183,198)
Total Fund Balance (Deficit) (17,839) (13,025) (16,724) (183,198)
Total Liabilities, Deferred Inflows and Fund Balance $ 21,139 $ 38,743 $ 33,576 $ 256,683
32
Cultural Urban Intrafund Totals
Environmental and Human Develop- Capital Activity
Aviation Control Recreational Services ment Outlay Elimination 2015 2014
1,691
4,994 48
1,407
22 5,355 421
16,471 3,215 1,208 11,256 99,905 3,772
892 3 93 772 307 303
2,267
6,498 9,012
36,793 3,218 3,796
50,724 421,526 4,075
$ 22,980 71,036 3,220 3,778 10,059 452,721 4,075
$ 79 $ 6,733 $ 7,205 $ 135,827 $ 2,370 $ 17,777 $
118 $
6 2
577
68 $ 70,383 $
130 13,513 4,287
2,942 18,044
84 $ 10,065 $ 7
10,034
261,316 7,408 72,293
$ 156,058 $ 157,929
296,159 9,861 69,825
703 $ 3,140 $ 106,227 $ 590 $ 20,106 $
259,140
(2,973) (2,973)
15,230 (240,275)
(216,142) (225,045)
6,733 $ 7,205 $ 135,827 $ 2,370 $ 17,777 $
33
Schedule 4
CITY OF CHICAGO, ILLINOIS (
SPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2015 With Comparative Totals for 2014 (Amounts are in Thousands of Dollars)
General Public Trans-
Government Health Safety portation
Revenues:
Federal/State Grants $ 4,582 $ 90,753 $ 33,534 $ 242,400
Total Revenues 4,582 90,753 33,534 242,400
Expenditures:
Current ' 5,229 93,007 43,337 242,804
Total Expenditures 5,229 93,007 43,337 242,804
Revenues Over Expenditures (647) (2,254) (9,803) (404)
Other Financing Sources (Uses):
Proceeds of Debt, net - - - 28,657
Operating Transfers Out (10,000) - _- -
Total Other Financing Sources (Uses) (10,000) - - 28,657
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Sources (Uses) (10,647) (2,254) (9,803) 28,253
Fund Balance (Deficit) - Beginning of Year (7,192) (10,771) (6,921) (211,451)
Fund Balance (Deficit) - End of Year $ (17,839) $ (13,025) $ (16,724) $ (183,198)
34
Environmental Cultural and Human Urban Capital Totals
Aviation Control Recreational Services Development Outlay 2015 2014
$ $ - 1,756 $ 12,682 $ 329,409 $ 2,573 $ 45,312 $ 763,001 , $ 809,840
- 1,756 12,682 329,409 2,573 45,312 763,001 809,840
- (72)_ 12,872 330,133 - 45,445 772,755 765,657
- (72)_ 12,872 330,133 - 45,445 772,755 765,657
1,828 (190) (724) 2,573 (133) (9,754) 44,183
28,657 17,168
- : : : : : (10,000) -
- - - - - - 18,657 17,168
1,828 (190) (724) 2,573 (133) 8,903 61,351
73 , 4,156 3,852 7,149 (1,100) (2,840) (225,045) (286,396)
$ 73 $ 5,984 $ 3,662 $ 6,425 $ 1,473 $ (2,973) $ (216,142) $ (225,045)
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