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Department of Finance
city of chicago
October 1, 2015
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, 2014. 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,
Daniel Widawsky City Comptroller
Enclosure
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121 NORTH LASALLE STREET, SUITE 700, CHICAGO, ILLINOIS 60602
CITY OF CHICAGO
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2014
Rahm Emanuel, Mayor
Carole L. Brown, Chief Financial Officer Daniel Widawsky, City Comptroller
Prepared by the Department of Finance
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OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL MAYOR
June 30, 2015
Dear Chicagoans:
Thank you for your interest in the Comprehensive Annual Financial Report (CAFR) of the City of Chicago for the 2014 fiscal year.
In 2014, the City of Chicago took vital steps to continue putting our fiscal house in order. We have reduced our structural deficit for the fourth consecutive year by making city government smaller, smarter and simpler and we have coupled necessary reforms with improved services so city government works better for all Chicago residents.
The best way for us to continue to grow the City's economy is to intensify our efforts to right the city's financial ship. By following a deliberate reform and invest strategy, we have begun the work of ending unsustainable financial practices while continuing to invest in critical areas of education, transportation, and job creation. The products of our work have served to enhance Chicago's position as the consummate place to live, work, and raise a family.
The City made significant progress in 2014, and we will continue our efforts to strengthen Chicago's future by reforming the way city government works, investing in our communities, and maintaining a high level of city services for our residents, all in a fiscally responsible way.
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
21st 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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2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CHICAGO
Table of Contents
PART I - INTRODUCTORY SECTION
Letter of Transmittal 8
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 Other Postemployment Benefits Funding Progress 98
Combining and Individual Fund Statements General Fund
Schedule A-1 Schedule of Revenues - Budget and Actual (Budgetary Basis) 100
Nonmajor Governmental Funds
Schedule B-1 Combining Balance Sheet 104
Schedule B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 105
Nonmajor Special Revenue Funds
Schedule C-1 Combining Balance Sheet 108
Schedule C-2 Combining Statement of Revenues, Expenditures and
Changes in Fund Balance (Deficit) 110
Schedule C-3 Combining Schedule of Revenues - Budget and Actual (Budgetary Basis) 112
Schedule C-4 Combining Schedule of Expenditures and Encumbrances - Budget and Actual
(Budgetary Basis) 114
Nonmajor Capital Projects Funds
Schedule D-1 Combining Balance Sheet 117
Schedule D-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 118
Fiduciary Funds
Schedule E-1 Agency Funds, Combining Statement of Changes in Assets and Liabilities 120
Schedule E-2 Pension Trust Funds, Combining Statement of Plan Net Position 122
Schedule E-3 Pension Trust Funds, Combining Statement of Changes in Plan Net Position 123|1010|
PART III - STATISTICAL SECTION (Unaudited)
Table 1 Net Position by Component, Last Ten Years 126
Table 2 Changes in Net Position - Accrual Basis of Accounting, Last Ten Years 128
Table 3 General Governmental Revenues by Source, Last Ten Years 134
Table 4 General Governmental Expenditures by Function, Last Ten Years 136
Table 4A Changes in Fund Balances, Governmental Funds, Last Ten Years 138
Table 5 Fund Balances, Governmental Funds, Last Ten Years 140
Table 6 General Fund, Schedule of Revenues, Expenditures and Changes in Fund Balances,
Five Years Ended December 31, 2014 142
Table 7 Special Revenue Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2014 143
Table 8 Debt Service Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2014 144
Table 9 Capital Projects Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2014 '. 145
Table 10 Property Tax Levies by Fund, Five Years Ended December 31, 2014 146
Table 11 Property Levies, Collections and Estimated
Allowance for Uncollectible Taxes, Last Ten Years 148
Table 12 Top Ten Estimated Equalized Assessed Valuation, Current Year and Nine Years Ago 149
Table 13 Assessed and Estimated Fair Market Value of All Taxable Property, Last Ten Years 150
Table 14 Property Tax Rates-Direct and Overlapping Governments, Per $100 of Equalized
Assessed Valuation, Last Ten Years 152
Table 15 Property Tax Rates-City of Chicago, Per $100 of Equalized
Assessed Valuation, Last Ten Years 152
Table 16 Ratio of General Net Bonded Debt to Equalized Assessed Value and
Net Bonded Debt per Capita, Last Ten Years 154
Table 17 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total
Governmental Expenditures, Last Ten Years 156
Table 18 Computation of Direct and Overlapping Bonded Debt 157
Table 19 Debt Statistics, Last Ten Years 158
Table 20 Revenue Bond Coverage, Last Ten Years 160
Table 21 Ratio of Outstanding Debt by Type, Last Ten Years 162
Table 22 Debt Service Requirements for General Long-term Debt 165
Table 23 Debt Service Requirements for General Obligation Debt 166
Table 24 Debt Service Requirements for Proprietary Funds 168
Table 25 Long-term Debt 170
Table 26 Population and Income Statistics, Last Ten Years 174
Table 27 Principal Employers (Non-government) Current Year and Nine Years Ago 175
Table 28 Full Time Equivalent City of Chicago Employees by Function, Last Nine Years 176
Table 29 Operating Indicators by Function/Department, Last Nine Years 177
Table 30 Capital Assets Statistics by Function, Last Nine Years 177
Table 31 Interest Rate Swap Counterparty Entities 178
Table 32 Bank Facilities 179
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PARTI
INTRODUCTORY SECTION
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Department of Finance city of chicago
June 30, 2015
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 ended December 31, 2014. 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) and 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 designed to meet the requirements of the federal Single Audit Act Amendment of 1996 and related OMB Circular A-133, Audits of State and Local Governments 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. 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 funds. Prior to October 15, the Mayor submits a proposed budget of expenditures and the means of financing them to the City Council for the next 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 14 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 are in the Chicago metropolitan area, including 31 in the Fortune 500. Long-standing components of the local economy, such as derivatives trading, remain strong -Chicago accounts for nearly one quarter (22%) of the world's global derivatives trading market; double that of New York (11%) and more than all of the exchanges in Europe combined (20%). Meanwhile, new sectors continuously emerge with an average of 275 new digital startups launching each year since 2011. A record high amount of venture capital - $1.6 billion - was invested in Chicago startups in 2014 and $8 billion in acquisitions and IPOs were completed in 2014.
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. In 2014, Chicago was recognized as a top 5 Global Destination City for business. Chicago-based companies, in turn, have a strong international presence, with over 8,000 locations across more than 170 countries and territories.
Business investment and expansion in Chicago continue to grow. Throughout 2014, monthly employment grew and unemployment declined in Chicago, as business expansions across Chicago led to approximately 20,000 new and retained jobs. In fact, more than 600 major business expansions (representing $6.8 billion in economic development) were announced, commenced, or completed throughout the metropolitan area in 2014, helping Chicago earn the "Top Metro" ranking in the U.S. for the second year in a row. Companies such as Coyote Logistics, Meade Electric, and PECO Pallet expanded in Chicago, helping to bring nearly $3.0 billion in new investment to the City in 2014.
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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 2014, with over 50 million visitors to the City, an increase of 6.8% over 2013. This activity continues to be a significant part of the local economy, helping to strengthen small businesses and provide jobs.
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 ofthe 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, identify potential financial risks and options to mitigate them, maximize economic efficiency, and allow sufficient flexibility to consider new fiscal and budgetary strategies.
2014 Budget and Major Initiatives. In 2014, the City built on the structural reforms and efficiencies put into place in previous budgets; made significant investments in the health, safety, and education of the children of Chicago; encouraged job creation and economic development; and continued to improve and increase City services. The City saved funds by instituting healthcare plan changes, reducing the amount of leased office space, and fully transitioning to a grid system for garbage collection. The City continued to invest in infrastructure, replaced 85 miles of water mains and 21 miles of sewer mains and lined 55 miles of sewers and 14,000 structures, including manholes and catch basins. Additionally, 15,000 meters were installed as part of the MeterSave program and construction continued on major pumping station improvements. The City provided funding to improve the transit system with the construction of the Loop Link Bus Rapid Transit route and improvements to the Roosevelt Road Intermodal Transfer Station, the Your New Blue - Blue Line Modernization, and the 18th Street connector. Additionally, the City provided funding to help families, with a pilot program to pay out the Earned Income Tax Credit in advanced quarterly payments and an investment in Family Net Centers, which are neighborhood technology training centers open to all residents. Finally, the 2014 Budget made key investments in programs for children, including expanding after school opportunities, summer jobs, digital training at libraries, and vision programs for Chicago Public School students.
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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 31,2013
Execudve Director/CEO
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CITY OF CHICAGO ORGANIZATION CHART AS OF 12/31/2014
Citizens
MAYOR
Cl cou TY NCIL
COUNCIL COMMITTEES
CITY TREASURER
Department of Administrative Hearings
Department Of Business Affairs and Consumer Protection
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
Commission on
Human Relations
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
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PART II FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT, MANAGEMENT'S DISCUSSION AND ANALYSIS
AND
THE BASIC FINANCIAL STATEMENTS
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Deloitte
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 ofthe 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, 2014, 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 ofthe 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 ofthe 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 ofthe risks of material misstatement ofthe 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 ofthe 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 ofthe 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.
Member o'
DelOilti' Tom hp Tohrn,it-,u l.nnit(:fl
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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 ofthe 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, 2014, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis 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 ofthe 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 ofthe 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 ofthe 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 ofthe 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.
Chicago. Illinois
June 30,2015
The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit ofthe 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, 2014
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, 2014. 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.
2014 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 $6,536.3 million (net deficit). The net deficit is composed of $2,742.5 million in net investment in capital assets and $2,471.0 million in net position restricted for specific purposes offset by an unrestricted deficit of $11,749.8 million. The net deficit increased in 2014 by $1,165.2 million primarily as of result of increased pension costs.
The City's total assets increased by $1,347.4 million. The increase primarily relates to a $897.8 million increase in capital assets as a result of the City's capital improvement program, and an increase in cash and cash equivalents and investments of $548.0 million, primarily as a result of an increase in charges for services, improved collection of receivables, and proceeds from financing to fund capital projects.
Revenues and Other Financing Sources, in the fund financial statements, available for general governmental operations during 2014 were $6,769.4 million, an increase of $806.9 million (13.5 percent) from 2013, primarily due to the issuance of General Obligation and Motor Fuel tax bonds.
The General Fund ended 2014 with a total Fund Balance of $141.3 million, of which $51.6 million was Unassigned. Total Fund Balance decreased from 2013 primarily because Revenues and Other Financing Sources were less than Expenditures and Other Financing Uses by $25.5 million.
The City's general obligation bonds and notes outstanding increased by $605.3 million during the current fiscal year. The proceeds from the issuance of General Obligation were used to finance the City's capital plan and certain operating expenses.
The General Fund expenditures on a budgetary basis were $28.9 million less than budgeted as a result of favorable variances in general government expenditures, offset by unfavorable variances in public safety primarily as a result of higher than expected personnel related expenses.
Overview ofthe 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 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 roads.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
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.
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, the only major fund with an appropriation budget, 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.
18
i
I I|1010|I
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
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 $6,536.3 million at December 31, 2014. Of this amount, $2,742.5 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, $2,471.0 million, represents resources that are subject to external restrictions on how they may be used.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
City of Chicago, Illinois Summary Statement of Net Position (in millions of dollars)
Governmental Business-type
Activities Activities
2014 2013 2014 2013
Current and other assets S 5,254.5 $ 5,311.5 $ 4,734.1 $ 4,227.5
Capital assets 8,281.2 7,993.6 13,822.5 13,212.3
Total Assets 13,535.7 13,305.1 18,556.6 17,439.8
Deferred outflows 281.5 266.1 320.9 274.1
Total 13,817.2 13,571.2 18,877.5 17,713.9
Long-term liabilities outstanding 19,516.8 18,069.6 13,602.6 13,094.8
Other liabilities 1,767.4 1,326.6 1,122.7 904.3
Total Liabilities 21,284.2 19,396.2 14,725.3 13,999.1
Deferred Inflows 1,576.3 1,597.3 1,645.2 1,663.6
Net Position:
Net investment in capital assets 28.7 (242.8) 2,713.8 2,446.2
Restricted 1,492.0 1,940.9 979.0 883.8
Unrestricted (10,564.0) (9,120.4) (1,185.8) (1,278.8)
Total net (deficit) position $ (9,043.3) $ (7,422.3) $ 2,507.0 $ 2,051.2
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)
2013
9,539.0 21,205.9
30,744.9 540.2
31,285.1
31,164.4 2,230.9
33,395.3 3,260.9
2,203.4 2,824.7 (10,399.2)
$ (6,536.3) $ (5,371.1)
Governmental Activities. Net position of the City's governmental activities decreased $1,621.0 million to a deficit of $9,043.3 million, primarily as a result of increased pension costs. 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 $10,564.0 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 ($900.6 million) and Municipal employees, Laborers', Policemen's and Firemen's net pension obligation and other post-employment benefits ($8,884.3 million). The City will include these amounts in future years' budgets as they come due. In addition, the remaining deferred inflow of $1,576.3 million from concession service agreements will be amortized into income over the life of such agreements.
Revenues for all governmental activities in 2014 were $5,729.1 million, an increase of $172.8 million from 2013. Over half of the City's revenues derived from taxes which increased by $98.8 million (3.2 percent). Total tax revenue includes an increase in property taxes received of $20.1 million (2.2 percent).
Expenses for governmental activities in 2014 were $7,350.1 million, an increase of $269.2 million (3.8 percent) over 2013. The amount that taxpayers paid for these governmental activities through City taxes was $3,191.6 million. Some of the cost was paid by those who directly benefited from the programs ($819.2 million), or by other governments and organizations that subsidized certain programs with grants and contributions ($720.6 million).
The City paid $997.7 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 $2,507.0 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.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
City of Chicago, Illinois Changes in Net Position Years Ended December 31, (in millions of dollars)
Governmental Activities
Business-type Activities
2013
Revenues:
Program Revenues:
773.4 634.4 184.4
906.7 2,186.1
754.7 116.6
5,556.3
Licenses, Permits, Fines and
Charges for Services $ 819.2
Operating Grants and Contributions 470.7
Capital Grants and Contributions 249.9
General Revenues:
Property Taxes 926.8
Other Taxes 2,264.8
Grants and Contributions not
Restricted to Specific Programs 740.9
Other 256.8
Total Revenues 5,729.1
2,667.2 3,044.8 242.5 400.5 119.7 128.3 477.9
Expenses:
General Government 2,857.7
Public Safety 2,913.5
Streets and Sanitation 275.8
Transportation 475.8
Health 125.1
Cultural and Recreational 121.5
Interest on Long-term Debt 580.7
Water
Sewer
Midway International Airport
Chicago-O'Hare International Airport
7,080.9 (1,524 6)
Chicago Skyway
Total Expenses 7,350.1
Change in Net Position (1,621.0)
(5,897.7)
Net (Deficit) Position, Beginning of Year (7,422.3)
Net (Deficit) Position, End of Year $ (9,043.3) S (7,422.3)
2,244.1 $ 2,021.3
95.6
213.0
$ 3,063.3 470.7 345.5
926.8 2,264.8
85.3
34.1
2,425.0
2,268.4
740.9 342.1
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)
(5,371.1)
8,154.1
442.5 216.6 241.1 920.8 10.6
455.4 225.6 248.2 1,029.7 10.3
1,969.2 455.8
2,051.2
2,667.2 3,044.8 242.5 400.5 119.7 128.3 477.9 442.5 216.6 241.1 920.8 10.6
1,831.6
436.8
8,912.5 (1,087.8)
(4,283.3)
1,614.4
$ 2,507.0 S 2,051.2 $ (6,536.3) S (5,371.1)
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
Expenses and Program Revenues - Governmental Activities
(in millions of dollars)
General Government Public Safety Streets and Sanitation
Transportation t-Health
Cultural and Recreational Interest on Long-term Debt
Revenues by Source - Governmental Activities
Capital Grants and Operating Grants and Contributions Contributions 4% 8%
Licenses, Permits, Fines and Charges for Services 14%
Other
5%
Grants and Contributions not restricted to specific programs 13%
Property Tax 16%
Other Taxes 40%
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
Business-type Activities. Total Revenues of the City's business-type activities increased by $156.6 million in 2014 mostly from an increase in the charges for services and rental income, offset by a decrease in capital grant funding.
The Water Fund's operating revenues increased by $80.9 million (13.2%) from 2013 due to a 15% increase in water rates, offset by the conversion of 20,256 accounts from nonmetered to metered. Operating expenses before depreciation and amortization for the year ended 2014 increased by $23.5 million (8.6%) from the year ended 2013 mainly due to increases in transmission and distribution expenses of $14.2 million and central services of $10.5 million; offset by a decrease in purification costs of $2.3 million.
The Sewer Fund's operating revenues increased in 2014 by $42.5 million (15.2%) primarily due to an increase in sewer rates. Operating expenses before depreciation and amortization for 2014 increased $9.9 million (9.1%) from the year ended 2013 due to an increase in repairs, general fund reimbursements, maintenance and administrative and general.
Chicago Midway International Airport's operating revenues for 2014 decreased by $4.9 million (2.8%) from 2013 primarily due to lower landing fees, and terminal area use charges. Concessions were by $1.7 million higher than last year due to an increase in auto parking. Total operating expenses before depreciation and amortization were $8.5 million (7.0%) higher than last year, due to increases in repairs and maintenance, professional and engineering fees, and salaries and wages of $4.6 million, $4.1 million, and $3.8 million, respectively. These increases are offset by a decrease of $4.0 million in other operating expenses.
Chicago O'Hare International Airport's operating revenues for 2014 increased by $126.8 million (17.7%) compared to 2013 primarily due to increased landing fees and terminal area use charges. Operating expenses before depreciation, amortization and capital asset impairment costs increased by $68.9 million (16.2%) compared to 2013 primarily due to increases in repairs and maintenance, salaries and wages, other operating expenses and professional and engineering fees of $25.4 million, $20.8 million, and $15.7 million, and $7.0 million, respectively.
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).
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
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
Water
Sewer
Chicago Midway International Airport Chicago-O'Hare International Airport Chicago Skyway
24
Revenues by Source - Business-type Activities
I
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
Financial Analysis ofthe 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, 2014, the City's governmental funds reported combined ending fund balances of $823.3 million, a decrease of $403.3 million in comparison with the prior year. Of this total amount $696.1 million was committed to specific expenditures, $65.2 million was assigned to anticipated uses, a deficit of $1,791.9 million was unassigned, $1,829.4 million was restricted in use by legislation, and $24.5 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 $51.6 million with a total fund balance of $141.3 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 4.4 percent of total General Fund expenditures. The fund balance of the City's General Fund decreased by approximately $25.8 million during the current fiscal year mainly due to an increase in personnel expenditures in public safety. The General Fund also provided $5.0 million to the Service Concession and Reserve Fund as appropriated for in the 2014 Budget.
The Federal, State and Local Grants Fund has a total deficit fund balance of $225.0 million. The deficit is $61.4 million lower than 2013 primarily due to more timely reimbursement of expenditures.
The Special Taxing Areas Fund has a total fund balance of $1,327.0 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 $620.9 million committed to specific expenditures. The unassigned deficit of $1,576.3 million results from the deferred inflows from long-term asset leases.
The Bond, Note Redemption and Interest Fund has a total fund balance of $26.9 million. This is $223.9 million lower than 2013 due to reclassification of long-term debt to short term debt during 2014. For more information, please refer to Note 9 to the basic financial statements.
The Community Development and Improvement Projects Fund has a total fund balance of $347.7 million. This is $15.9 million lower than 2013 due to increased capital improvement efforts.
Changes in fund balance. The fund balance for the City's governmental funds decreased by $403.3 million in 2014. This includes a decrease in inventory of $0.3 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 $1,185.8 million. The unrestricted net position deficit decreased by $93.0 million due to an increase in the unrestricted assets in the Water Fund and Sewer Fund. Other factors concerning the finances of these five funds have already been addressed in the discussion of the City's business-type activities.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
General Fund Budgetary Highlights
The City's 2014 Original General Fund Budget was $3,290.2 million. This budget reflects an increase of $131.2 million (4.2 percent) over the 2013 Budget. On November 26, 2013 the City's 2014 General Fund Budget was approved by the City Council. The General Fund revenues on a budgetary basis were $28.9 million less than the final budget as a result of lower collection of fines, state income tax, internal service, and licenses and permits revenue offset by higher than expected taxes. Expenditures were $28.9 million less than budgeted as a result of favorable variances in general government expenditures, offset by unfavorable variances in public safety primarily as a result of higher than expected personnel related expenses. Additional information on the City's budget can be found in Note 3 under Stewardship, Compliance and Accountability within this report.
Capital Asset and Debt Administration
Capital Assets. The City's capital assets for its governmental and business-type activities as of December 31, 2014 amount to $22,103.7 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 2014 totaled $28.5 million including; Albany Park Branch Library totaling $11.9 million and Harold Washington Library totaling $7.7 million.
During 2014, $14.5 million of Architectural Plans and Landscape Drawings (Manuscripts) were donated to the City of Chicago. This was recorded as a donated capital asset addition in Works of Art and Historical Collections.
During 2014, the City completed $271.4 million in infrastructure projects including $141.0 million in street construction and resurfacing projects, $96.7 million in bridge and viaduct reconstruction projects, and $33.7 million in street lighting and transit projects. At year end, Infrastructure projects still in process had expenses totaling nearly $511.2 million.
At the end of 2014, the Water Fund had $3,482.2 million invested in utility plant, net of accumulated depreciation. During 2014, the Water Fund expended $364.8 million on capital activities. This included $16.4 million for structures and improvements, $62.0 million for distribution plant, $4.0 million for equipment, and $282.4 million for construction in progress.
During 2014, net completed projects totaling $137.6 million were transferred from construction in progress to applicable capital accounts. The major completed projects relate to installation and replacements of water mains ($109.4 million), and Jardine Water Purification plant's east building filter roof replacement and structural repair ($26.3 million).
At the end of 2014, the Sewer Fund had $2,025.2 million invested in utility plant, net of accumulated depreciation. During 2014, the Sewer Fund had capital additions being depreciated of $210.4 million, and completed projects totaling $16.3 million were transferred from construction in progress to applicable facilities and structures capital accounts. The 2014 Sewer Main Replacement Program completed 21.1 miles of sewer mains and 59.0 miles of relining of existing sewer mains at a cost of $210.4 million.
At the end of 2014, Chicago-Midway International Airport totaled $1,172.3 million, invested in net capital assets. During 2014, the Airport had additions of $48.4 million related to capital activities. This included $1.0 million for land acquisition and the balance of $47.4 million for construction projects relating to terminal improvements, runway rehabilitation and parking improvements.
At the end of 2014, Chicago-O'Hare International Airport totaled $6.9 billion, invested in net capital assets. During 2014, the Airport had additions of $346.7 million related to capital activities. This included $1.0 million for land acquisition and the balance of $345.6 million for terminal improvements, road and sidewalk
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
enhancements, runway and taxiway improvements. During 2014, completed projects totaling $438.8 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 and sidewalk enhancements and terminal improvements.
City of Chicago, Illinois Capital Assets (net of depreciation) (in millions of dollars)
Governmental Business-type
Activities Activities Total
2014 2013 2014 2013 2014 2013
Land $ 1,392.8 $ 1,392.6 $ 1,018.7 $ 1,016.6 $ 2,411.5 $ 2,409.2
Works of Art and
Historical Collections 45.2 30.8 - - 45.2 30.8
Construction in Progress 545.5 260.2 1,256.3 1,207.8 1,801.8 1,468.0
Buildings and Other Improvements 1,630.2 1,668.0 11,227.0 10,651.6 12,857.2 12,319.6
Machinery and Equipment 235.3 225.8 320.5 336.3 555.8 562.1
Infrastructure 4,432.2 4,416.2 - - 4,432.2 4,416.2
Total $8,281.2 $.7,993.6 $ 13,822.5 $13,212.3 $ 22,103.7 $21,205.9
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 $7,860.4 million in General Obligation Bonds and $475.1 million in General Obligation Certificates and Other Obligations outstanding. Other outstanding long-term debt is as follows: $189.7 million in Motor Fuel Tax Revenue Bonds; $554.1 million of Sales Tax Revenue Bonds; $74.4 million in Tax Increment Financing Bonds; and $13,071.6 million in Enterprise Fund Bonds and long-term obligations. For more detail, refer to Note 10 Long-term Obligations in the Basic Financial Statements.
City of Chicago, Illinois General Obligation and Revenue Bonds (in millions of dollars)
Governmental Business-type
Activities Activities Total
2014 2013 2014 2013 2014 2013
General Obligation $ 8,335.5 $ 7,730.2 $ - $ - $ 8,335.5 $ 7,730.2
Tax Increment 74.4 88.4 - - 74.4 88.4
Revenue Bonds 743.8 753.2 13,071.6 12,526.5 13,815.4 13,279.7
Total $ 9,153.7 $ 8,571.8 $ 13,071.6 $ 12,526.5 $ 22,225.3 $ 21,098.3
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
During 2014, the City issued the following: General Obligation Bonds:
General Obligation Bonds, Project and Refunding Series 2014A and Taxable Project and Refunding Series 2014B ($883.4 million).
Motor Fuel Tax Revenue Refunding Bonds Series 2013 ($105.9 million - issue of 2014).
Tax Increment Allocation Revenue Refunding Bonds (Pilsen Redevelopment Project) Series 2014A and 2014B Series Taxable ($33.4 million).
Enterprise Fund Revenue Bonds and Notes:
Chicago-O'Hare International Airport General Commercial Paper Notes ($51.0 million)
Chicago Midway International Airport Second Lien Revenue and Revenue Refunding Bonds, Series 2014A (AMT), Series 2014B (Non-AMT), and Series 2014C (AMT) ($896.5 million).
Second Lien Water Revenue Bonds, Series 2014 ($367.9 million).
Second Lien Wastewater Transmission Revenue Bonds, Series 2014 ($292.4 million).
At December 31, 2014 the City had credit ratings with each of the three major rating agencies as follows:
Standard & 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
Baal
A2 A2 Baal
A2 A3
A2 A3
A2 A3
Baal
Baal
A+
A-A-BBB
A A-
AA AA-
AA AA-
AAA
AA+
A-A
NR
A A-
AA+ AA
NR AA
A-
BBB+
NR
NR NR NR
NR NR
NR AA
NR AA-
NR
NR
See Subsequent Events in the footnotes for ratings changes in 2015.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2014
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 2014, local and national economies experienced moderate growth and recovery from the economic downturn. Although rising home prices and shrinking inventory slowed the housing market in 2014 and home sales were down 7 percent compared to 2013, median home prices were up 14 percent over 2013. In 2014, nationwide, retail sales grew 4 percent over 2013, with consumer confidence showing consistent improvement. The average national unemployment rate decreased from 7.3 percent in 2013 to 6.2 percent in 2014, and Chicago's unemployment rate was down consistently throughout 2014. Tourism, business, and convention travel to Chicago remained strong in 2014, with amusement tax collections up about 17 percent and hotel tax revenues up about 12 percent from 2013. Additionally, in July 2014, Chicago had over one million occupied hotel rooms; this was the first time this benchmark has ever been reached in a single month.
The City's 2015 General Fund budget, totaling $3,534 million, was approved by a 46 to 4 vote of City Council on November 19, 2014. The 2015 budget balanced a preliminary budget shortfall of $297 million by reforming and cutting spending, and improving revenue growth. The 2015 budget balances the City's finances without raising property, sales or gas taxes. At the same time, it makes significant investments in youth, infrastructure, and businesses, as well as in City services, and it continues to build the City's reserves in order to enhance long-term financial stability. The 2015 budget also commits an additional $5 million to the City's long-term reserves, following provisions of $20 million in 2012, $15 million in 2013 and $5 million in 2014.
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
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Exhibit 1
CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION December 31, 2014
(Amounts are in Thousands of Dollars)
Governmental Activities
ASSETS AND DEFERRED OUTFLOWS
Cash and Cash Equivalents S 537,665
Investments 1,563,515
Cash and Investments with Escrow Agent 411,085
Receivables (Net of Allowances):
Property Tax 1,150,682
Accounts 977,873
Internal Balances (50,892)
Inventories 24,498
Restricted Assets:
Cash and Cash Equivalents 28,689
Investments 593,643
Other Assets 17,778
Capital Assets:
Land, Art, and Construction in Progress 1,983,594
Other Capital Assets, Net of Accumulated Depreciation 6,297,580
Total Capital Assets 8.281.174
Total Assets 13,535,710
Deferred Outflows 281,487
Total Assets and Deferred Outflows $ 13,817,197
LIABILITIES AND DEFERRED INFLOWS
Voucher Warrants Payable S 579,901
Short-term Debt 297,981
Accrued Interest 225,459
Accrued and Other Liabilities 401,318
Unearned Revenue 113,862
Derivative Instrument Liability 148,923
Long-term Liabilities:
Due Within One Year 314,682
Due in More Than One Year 19,202,103
Total Liabilities 21,284,229
Deferred Inflows 1,576,293
Total Liabilities and Deferred Inflows 22,860,522
NET POSITION
Net Investment in Capital Assets 28 744
Restricted for:
Capital Projects
Debt Service 164,937
Special Taxing Areas 1,327,058
Passenger Facility Charges
Contractual Use Agreement
Airport Development Fund
Customer Facility Charges
Other Purposes
Unrestricted (Deficit) (10,564,064)
Total Net Position S (9.043.325)
Total
643,087 1,835,373 411,085
1,150,682 1,318,709
46,306
1,149,852 3,324,414 109,132
4,258,559 17,845,101
22.103.660 32,092,300 602,426
920,711 297,981 498,746 565,635 258,089 349,018
622,495 32,496,889 36,009,564 3,221,445
39,231,009
18,877,529 $ 32,694,726
340,810 $
273,287 164,317 144,227 200,095
307,813 13,294,786 _ 14,725,335 _ 1,645,152
2,742,569
193,782 200,235 1,327,058 142,765 158,165 300,101 113,661 35,200 (11,749,819)
16,370,487
2,713,825
193,782 35,298
142,765 158,165 300,101 113,661 35,200 (1,185,755)
2,507,042 "$ (6,536,283)
See notes to basic financial statements.
I i
i
Exhibit 2
CITY OF CHICAGO, ILLINOIS STATEMENT OF ACTIVITIES Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Licenses, Permits, Fines and Charges for Services
Primary Government Governmental Activities:
General Government $ 2,857,789
Public Safety 2,913,469
Streets and Sanitation 275,814
Transportation 475,751
Health 125,068
Cultural and Recreational 121,548
Interest on Long-term Debt 580,701
Total Governmental Activities 7,350,140
505,275 208,206 44,552 44,278 2,281 14,643
819,235
Business-type Activities:
Water 455,433 ' 692,634
Sewer 225,600 322,228
Chicago Midway International Airport 248,231 216,662
Chicago-O'Hare International Airport 1,029,559 1,012,529
Chicago Skyway 10,314 -
Total Business-type Activities 1,969,137 2,244,053
Total Primary Government $ 9,319,277 $ 3,063,288
See notes to basic financial statements.
32
i i
Program Revenues Net (Expense) Revenue and Changes in Net Assets
Primary Government
Operating Capital
Grants and Grants and Governmental Business-type
Contributions Contributions Activities Activities Total
$ 294,052 $ - $ (2,058,462) $ - $ (2,058,462)
57,633 - (2,647,630) - (2,647,630)
(231,262) - (231,262)
249,860 (181,613) - (181,613)
104,447 - (18,340) - (18,340)
14,527 - (92,378) - (92,378)
-_ (580,701) -_ (580,701)
470,659 249,860 (5,810,386) - (5,810,386)
1,766 - 238,967 238,967
96,628 96,628
4,826 - (26,743) (26,743)
89,032 - 72,002 72,002
-_ (10,314) (10,314)
-_ 95,624 -_ 370,540 370,540
$ 470,659 $ 345,484 (5,810,386) 370,540 (5,439,846)
General Revenues Taxes:
Property Tax 926,839 - 926,839
Utility Tax 570,469 - 570,469
Sales Tax 324,273 - 324,273
Transportation Tax 406,624 - 406,624
Transaction Tax 379,256 - 379,256
Special Area Tax 260,256 - 260,256
Recreation Tax 193,680 - 193,680
Other Taxes 130,266 - 130,266
Grants and Contributions not Restricted to
Specific Programs 740,911 - 740,911
Unrestricted Investment Earnings 62,400 35,849 98,249
Miscellaneous 194,415 49,430 243,845
Total General Revenues 4,189,389 85,279 4,274,668
Change in Net Assets (1,620,997) 455,819 (1,165,178)
Net Position - Beginning (7,422,328) 2,051,223 (5,371,105)
Net Position - Ending $ (9,043,325) $ 2,507,042 $ (6,536,283)
33
Exhibit 3
CITY OF CHICAGO, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2014
(Amounts are in Thousands of Dollars)
General
ASSETS
Cash and Cash Equivalents $ 1,102
Investments 102,400
Cash and Investments with Escrow Agent
Receivables (Net of Allowances):
Property Tax
Accounts 209,386
Due From Other Funds 109,514
Due From Other Governments 241,878
Inventories 24,498
Restricted Cash and Cash Equivalents 389
Restricted Investments
Other Assets -
Total Assets $ 689,167
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 185,783
Bonds, Notes and Other Obligations Payable - Current
Accrued Interest
Due To Other Funds 276,805
Accrued and Other Liabilities 69,811
Line of Credit and Commercial Paper
Claims Payable 13,326
Unearned Revenue 2,164
Total Liabilities 547,889~
Deferred Inflows -_
Fund Balance:
Nonspendable 24,498
Restricted
Committed
Assigned 65,223
Unassigned 51,557
Total Fund Balance 141,278
Total Liabilities, Deferred Inflows and Fund Balance $ 689,167
Special Taxing Areas
403,019 588,005
Federal, State and Local Grants
$
288,302 4,429 423,933
22,980 71,036
3,778 10,059 452,721
3,220
4,075
$ 567,869 $ 1,707,689
11,682 2,920
$ 157,929 $ 117,027
296,159 9,861
131,629
69,825 533,774
259,140
15,230
249,002
1,327,058
(240,275) -
(225,045) 1,327,058 $ 567,869 $ 1,707,689
S.ee notes to basic financial statements.
Service Community
Concession Bond, Note Development Other Total
and Redemption and Improvement Governmental Governmental
Reserve and Interest Projects Funds Funds
$ 99 $ 17,119 $ 77,793 $ 15,553 $ 537,665
172,490 439,137 190,447 1,563,515
338,533 - 72,552 411,085
491,473 - 370,907 1,150,682
2,435 2,971 2,626 16,608 242,233
5,000 - 97,053 79,210 724,769
2,578 - 38,463 735,640
24,498
24,868 - 211 - 28,689
593,643 - - - 593,643
-_ - -_ - 4,075
$ 626,045 $ 1,025,164 $ 616,820 $ 783,740 $ 6,016,494
$ 14 $ - $ 38,999 $ 64,877 $ 564,629
82,331 - 4,400 86,731
223,995 - 1,464 225,459
5,140 85,700 56,996 94,698 827,180
95,373 67,648 245,613
198,086 77,800 21,423 297,309
13,326
- 41,873 - - 113,862
5,154 631,985 269,168 254,510 2,374,109
1,576,293 420,051 - 314,563 2,819,049
24,498
347,652 139,491 1,829,431
620,891 - - 75,176 696,067
65,223
(1,576,293) (26,872) - -_ (1,791,883)'
(955,402) (26,872) 347,652 214,667 823,336
$ 626,045 $ 1,025,164 $ 616,820 $ 783,740 $ 6,016,494
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 8,281,174
Other long-term assets are not available to pay for current-period
expenditures and therefore are recorded as deferred inflows in the funds 1,242,756
Certain liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the funds (19,390,591)
Net position of governmental activities $ (9,043,325)
35
Exhibit 4
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Federal,
State and Special
Local Taxing
General Grants Areas
Revenues:
Property Tax $ $ - $
Utility Tax 473,496
Sales Tax (Local) 285,773
Transportation Tax 185,076
State Income Tax 278,031
State Sales Tax 334,526
Transaction Tax 316,201
Special Area Tax - - 331,380
Recreation Tax 193,680
Other Taxes 109,004
Federal/State Grants 2,335 809,840
Internal Service 305,716
Licenses and Permits 119,940
Fines 338,329
Investment Income 1,573 - 4,822
Charges for Services 141,850 - 5
Miscellaneous 90,620 - 2,149
Total Revenues 3,176,150 809,840 338,356
Expenditures: Current:
General Government 929,918 360,892 446,652
Health 25,902 102,350 15
Public Safety 2,020,072 40,122
Streets and Sanitation 195,390 - 419
Transportation 47,309 237,961 139,933
Cultural and Recreational - 12,272 15
Employee Pensions -
Other 2,298 2,197
Capital Outlay - 9,863
Debt Service:
Principal Retirement 7,830
Interest and Other Fiscal Charges 2,539 - -
Total Expenditures 3,231,258 765,657 587,034
Revenues (Under) Over Expenditures (55,108) 44,183 (248,678)
Continued on following pages.
36
I
I
Service Concession and Reserve
39,607 21,033
Bond, Note Redemption and Interest
481,698 22,332 38,500 12,552
17
2,203 17,963 15,303
Community Development
and Improvement Projects
5,579 27,538
Nonmajor Governmental Funds
448,143 74,641
208,996 126,019
63,055
21,245
30,046
15,188 106 31,073 23,296
Total Governmental Funds
929,841 570,469 324,273 406,624 404,050 334,526 " 379,256 331,380 193,680 130,266 812,175 335,762 122,143 353,517 69,650 172,928 179,939
6,050,479
14 - - 306,081 2,043,557
502 128,769
6,785 2,066,979
73,584 269,393
93,298 518,501
81,238 93,525
483,493 483,493
915 5,410
317,499 67,854 395,216
518,078 - 73,487 599,395
533,897 - 31,720 568,156
14 1,051,975 317,499 1,218,957 7,172,394
60,626 (461,407) (284,382) (177,149) (1,121,915)
37
I
I
Exhibit 4 - Concluded
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Federal, State and Local
General Grants
Special Taxing Areas
Other Financing Sources (Uses):
Issuance of Debt $ - $ 17,168 $
Premium - . -
Payment to Refunded Bond Escrow Agent ...
Transfers In 39,700 - 97,513
Transfers Out (10,081) -_ (44,463)
Total Other Financing Sources (Uses) 29,619 17,168 53,050
Net Changes in Fund Balance (25,489) 61,351 (195,628)
Fund Balance, Beginning of Year 167,057 (286,396) 1,522,686
Change in Inventory (290)
Fund Balance, End of Year $ 141,278 $ (225,045) $ 1,327,058
See notes to basic financial statements.
38
Service Concession Agreements and Reserve
Bond, Note Redemption and Interest
Community Development
and Improvement Projects
Nonmajor Governmental Funds
Total Governmental Funds
$ 328,471 $ 535,240 $ 123,468 $ 1,004,347
9,995 5,208 2,262 17,465
(302,862) - - (302,862)
5,000 366,198 7,004 137,171 652,586
(13,900) (164,268) (279,009) (140,865) (652,586)
(8,900) 237,534 268,443 122,036 718,950
51,726 (223,873) (15,939) (55,113) (402,965)
(1,007,128) 197,001 363,591 269,780 1,226,591
-_ - -_ - (290)
$ (955,402) $ (26,872) $ 347,652 $ 214,667 $ 823,336
39
I
!
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 31,2014 (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 $ (402,965)
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 '. 303,167
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds (155,112)
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 (115,625)
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 (1,250,462)
Change in the net position of governmental activities $ (1,620,997)
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, 2014 (Amounts are in Thousands of Dollars)
Revenues:
Utility Tax $
Sales Tax
Transportation Tax
Transaction Tax
Recreation Tax
Business Tax
State Income Tax
State Sales Tax
State Auto Rental
Federal/State Grants
Infernal Service ,
Licenses and Permits
Fines
Investment Income
Charges for Services
Municipal Utilities
Leases, Rentals and Sales
Miscellaneous
Budgeted Prior Years' Surplus
and Reappropriations
Transfers In/Out
Total Revenues
Expenditures: Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Debt Service:
Principal Retirement
Interest and Other Fiscal Charges
Total Expenditures
Original Budget
450,274 274,505 183,732 284,627 182,565 102,470 293,700 322,272
4,100
1,500 318,212 131,668 414,680
4,725 124,476
6,656 22,118 55,920
53,417 58,608
3,290,225
1,051,842 28,127
1,960,557 196,446 50,873
1,830 550
3,290,225
Final Budget
450,274 274,505 183,732 284,627 182,565 102,470 293,700 322,272
4,100
1,500 318,212 131,668 414,680
4,725 124,476
6,656 22,118 55,920
53,417 58,608
3,290,225
1,051,842 28,127
1,960,557 196,446 50,873
1,830 550
3,290,225
Actual Amounts
473,496 285,773 185,076 316,201 193,680 104,829 278,031 334,526
4,175
2,335 305,716 119,940 338,329
1,573 134,593
7,257 24,127 66,493
45,472 39,700
3,261,322
958,216 26,229 2,037,661 189,909 46,927
1,830 550
3,261,322
Variance
23,222 11,268 1,344 31,574 11,115 2,359 (15,669) 12,254 75 835 (12,496) (11,728) (76,351) (3,152) 10,117 601 2,009 10,573
(7,945) (18,908)
(28,903)
93,626 1,898
(77,104) 6,537 3,946
28,903
Revenues Over (Under) Expenditures ... $
See notes to basic financial statements.
Exhibit 7
CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2014
(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 $ 23,551
Investments 101,359
Accounts Receivable (Net of
Allowances) 159,613
Interest Receivable 163
Due from Other Funds 91,224
Inventories 21,192
Cash and Cash Equivalents - Restricted 12,596
Investments - Restricted 132,451
Interest Receivable - Restricted 599
Other Assets - Restricted
TOTAL CURRENT ASSETS 542,748
NONCURRENT ASSETS:
Cash and Cash Equivalents - Restricted
Investments - Restricted : 386,090
Interest Receivable - Restricted
Other Assets - Restricted
Due from Other Governments - Restricted
Other Assets 4,898
Property, Plant, and Equipment:
Land 5,083
Structures, Equipment and
Improvements 3,986,305
Accumulated Depreciation (966,834)
Construction Work in Progress 457,645
Total Property, Plant and Equipment 3,482,199
TOTAL NONCURRENT ASSETS: 3,873,187
TOTAL ASSETS 4,415,935
DEFERRED OUTFLOWS 129,229
TOTAL ASSETS and DEFERRED OUTFLOWS $ 4,545,164
676 $ 481
5,632 94,002
76,760 212 33,751
494,735
6,358 $ 34,042
11,518
527
72,514
69,205 $ 41,974
91,339
29,416
616 21,247 103,473
541
105,422 271,858
357,811
124,959
2,860 707,952
464,329 1,503,728 3,684 31,729 1,229 33,987
339,232 375 154,918 21,808 601,092 235,924 1,140 2,860
1,159
55,742 310,902 262 3,045
901
114,780
1,556,519 (519,551) 20,585
1,172,333 1,543,185
1,734,629
289,041
3,970
9,964
12,609
490,818 (233,547)
269,880
885,669
8,208,757 (2,973,903) 752,331
6,872,854
560
2,494,910 (495,953) 25,703
2,025,220 2,318,231
520,071 2,489,761 3,946 34,774 1,229 53,720
1,018,701
16,737,309 (5,189,788) 1,256,264
8,911,540 279,844
13,822,486
2,676,042 1,668,144
9,619,492
281,003
16,925,987
89,905
51,633
50,172
18,660,616
320,939
$ 2,765,947 $ 1,719,777 $ 9,669,664 $ 281,003 $ 18,981,555
See notes to basic financial statements.
Business-type Activities - Enterprise Funds
Major Funds
Water
LIABILITIES CURRENT LIABILITIES:
Voucher Warrants Payable $ 26,168
Due to Other Funds 20,130
Accrued and Other Liabilities 92,312
Unearned Revenue 22,411
Current Liabilities Payable From
Restricted Assets 144,321
TOTAL CURRENT LIABILITIES 305,342
NONCURRENT LIABILITIES: Revenue Bonds and
Commercial Paper Payable 2,456,933
Derivative Instrument Liability 98,106
Other 1,577
TOTAL NONCURRENT LIABILITIES ... 2,556,616
TOTAL LIABILITIES 2,861,958
DEFERRED INFLOWS
Chicago-Midway International Airport
18,732 9,134 2,165 558
Sewer
4,242 71,228 31,047 18,076
72,514
103,103
1,590,934
124,720 249,313
1,710,019
71,861
30,128 2,310
1,781,880 1,623,372
2,031,193 1,726,475
Chicago-O'Hare International Airport
61,106 3,519 7,409 103,182
494,735 669,951
7,536,900
2,729 7,539,629 8,209,580
Total
Chicago Skyway
140 $ 15
110,388 104,026 132,933 144,227
155
836,290
1,327,864
13,294,786
200,095 6,616
13,501,497
1,645,152
155 14,829,361
1,645,152
NET POSITION: Net Investement
in Capital Assets 1,393,968 520,627 (115,080) 644,430 269,880 2,713,825
Restricted Net Position:
Debt Service - - 12,109 23,189 - 35,298
Capital Projects 599 111,333 10,160 71,690 - 193,782
Passenger Facility Charges - - 4,658 138,107 - 142,765
Contractual Use Agreement - - 28,282 129,883 - 158,165
Air Development Fund - - - 300,101 - 300,101
Customer Facility Charge - - 23,651 90,010 - 113,661
Other - - 7,666 27,534 - 35,200
Unrestricted Net Position 288,639 102,794 21,856 35,140 (1,634,184) (1,185,755)
TOTAL NET POSITION $ 1,683,206 $ 734,754 $ (6,698) $ 1,460,084 $ (1,364,304) $ 2,507,042
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 31,2014
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Chicago- Chicago-
Midway O'Hare
International International Chicago
Water Sewer Airport Airport Skyway
Operating Revenues:
Charges for Services - Net $ 670,559 $ 321,100 $ 83,455 $ 552,431 $
Rent - - 86,804 292,093
Other 22,075 VI28 - - -_
Total Operating Revenues 692,634 322,228 170,259 844,524 - -
Operating Expenses:
Personnel Services 120,607 14,394 47,836 182,984
Contractual Services 55,664 3,336 23,255 88,143
Repairs and Maintenance 1,886 64,809 44,160 110,928
Commodities and Materials 22,089 ..
Depreciation and Amortization 57,949 36,701 46,163 218,211 10,314
General Fund Reimbursements 77,371 36,740
Other 21,105 - 14,345 112,952 -_
Total Operating Expenses 356,671 155,980 175,759 713,218 10,314
Operating Income (Loss) 335,963 166,248 (5,500) 131,306 (10,314)
Nonoperating Revenues (Expenses):
Investment Income (Loss) (515) 2,984 3,540 29,838 2
Interest Expense (98,762) (69,620) (64,111) (300,295)
Passenger Facility Charges - - 39,889 131,721
Customer Facility Charges - - 6,514 36,284
Noise Mitigation Costs - - (3,103) (15,892)
Cost of Issuance - - (5,258) (154)
Other (2,223) 829 1,522 30,845 18,457
Total Nonoperating Revenues
(Expenses) (101,500) (65,807) (21,007) (87,653) 18,459
Capital Grants 1,766 - 4,826 89,032
Net Income (Loss) 236,229 100,441 (21,681) 132,685 8,145
Net Position (Deficit)-Beginning of Year 1,446,977 634,313 14,983 1,327,399 (1,372,449)
Net Position (Deficit)-End of Year S 1,683,206 $ 734,754 $ (6,698) S 1,460,084 $ (1,364,304)
Total
$ 1,627,545 378,897 23,203
2,029,645
365,821 170,398 221,783 22,089 369,338 114,111 148,402
1,411,942
617,703
35,849 (532,788) 171,610 42,798 (18,995) (5,412) 49,430
(257,508) 95,624 455,819
2,051,223 $ 2,507,042
See notes to basic financial statements.
Exhibit 9
CITY OF CHICAGO, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Water
Cash Flows from Operating Activities:
Received from Customers $ 670,519
Payments to Vendors (80,663)
Payments to Employees (120,607)
Transactions with Other City Funds (143,903)
Cash Flows Provided By
Operating Activities 325,346
Cash Flows from Capital and Related Financing Activities: Proceeds from Issuance of Bonds/
Commercial Paper 462,500
Acquisition and Construction of
Capital Assets (334,191)
Capital Grant Receipts
Bond Issuance Costs (3,146)
Payment to Refund Bonds
Principal Paid on Debt (43,633)
Interest Paid (109,432)
Passenger and Customer Facility Charges
Concessionaire Funds
Cash Flows (Used in) Provided By Capital
and Related Financing Activities (27,902)
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 (306,037)
Investment Income (Loss) 8,209
Cash Flows Provided By (Used in)
Investing Activities (297,828)
Net Increase (Decrease) in Cash and
Cash Equivalents (384)
Cash and Cash Equivalents, Beginning of Year 36,531
Cash and Cash Equivalents, End of Year $ 36,147
Chicago-Midway International Airport
Sewer
$ 310,970 $ 164,849
(35,780) (83,377)
(43,617) (39,295)
35,737
(40,218) (6,440)
338,026 (167,115)
191,355
972,038
(37,929) (69,860)
63,122
(41,443) 4,894 (5,258) (797,008) (82,378) (59,237) 46,539
38,147
(2,609) 1,029
(213,388) 4,657
(1,580)
(208,731)
(111,577) 2,953
45,746 44,706
(108,624)
90,452
(36,320) 170.934
134,614 $
See notes to basic financial statements.
I
Exhibit 9 - Concluded
CITY OF CHICAGO, ILLINOIS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended December 31, 2014
(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) $ 335,963 $ 166,248 $ (5,500) $ 131,306 $ (10,314) $ 617,703
369,340 38,765
(81,554) (73,208)
1,728
19,120
1,494
Adjustments to Reconcile:
Depreciation and Amortization 57,949 36,701 46,164 218,212 10,314
Provision for Uncollectible Accounts 22,537 16,557 (329)
Change in Assets and Liabilities:
(Increase) Decrease in Receivables (45,813) (29,162) 3,739 (10,318)
(Increase) Decrease in Due From Other Funds (71,789) (2,489) 3,612 (2,542)
Increase (Decrease) in Voucher Warrants
Payable and Due to Other Funds 10,775 (1,541) (3,463) (4,043)
Increase (Decrease) in Unearned Revenue
and Other Liabilities 15,077 4,389 (8,492) 8,146
(Increase) Decrease in Inventories and
Other Assets 647_ ¦ 652|99|189 -
Cash Flows from
Operating Activities $ 325,346 $ 191,355 $ 35,737 $ 340,950 $ $ 893,388
Supplemental Disclosure of Noncash Items:
Capital asset additions in 2014 have outstanding accounts payable
and accrued and other liabilities $ 64,553 $ 54,611 S 18,615 S 89,773 $ - $ 227,552
See notes to basic financial statements.
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Exhibit 10
CITY OF CHICAGO, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2014
(Amounts are in Thousands of Dollars)
Pension Trust Agency
ASSETS
Cash and Cash Equivalents $ 234,273 $ 53,202
Investments - 109,447
Investments, at Fair Value Bonds and U.S. Government
Obligations 2,426,669
Stocks 5,139,698
Mortgages and Real Estate 668,384
Other 1,862,939
Cash and Investments with
Escrow Agent - 6,437
Property Tax Receivable - 91,619
Accounts Receivable, Net 623,874 114,155
Due From City 51,519
Property, Plant, Equipment and other 570
Invested Securities Lending Collateral 906,189 -
Total Assets $ 11,914,115 $ 374,860
LIABILITIES
Voucher Warrants Payable $ 341,537 $ 37,534
Accrued and Other Liabilities - 259,623
Securities Lending Collateral 906,189 -
Total Liabilities 1,247,726 $ 297,157
Deferred Inflows _$_ 787 $ 77,703
Total Liabilities and Deferred Inflows $ 1,248,513 $ 374,860
NET POSITION
Restricted for Pension Benefits 10,665,602
Total Net Position $ 10,665,602
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, 2014 (Amounts are in Thousands of Dollars)
Total
ADDITIONS Contributions:
Employees $ 290,063
City 470,199
Total Contributions 760,262
Investment Income: Net Appreciation in
Fair Value of Investments 365,194
Interest, Dividends and Other 232,118
Investment Expense (50,906)
Net Investment Income 546,406
Securities Lending Transactions:
Securities Lending Income 2,711
Securities Lending Expense 1,075
Net Securities Lending Transactions 3,786
Total Additions 1,310,454
DEDUCTIONS
Benefits and Refunds of Deductions 1,888,392
Administrative and General 17,713
Total Deductions 1,906,105
Net Increase in Net Position (595,651)
Net Position:
Beginning of Year 11,261,253
End of Year $ 10,665,602
See notes to basic financial statements.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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, 2014, the City adopted the following GASB Statements:
GASB Statement No. 67, Financial Reporting for Pension Plans, an amendment of GASB No. 25 ("GASB 67"), was established to provide improved financial reporting by state and local government pension plans. The Pension Plans (as defined below in subsection a) adopted GASB No. 67 during the year ended December 31, 2014.
GASB Statement No. 69, Government Combinations and Disposals of Government Operations ("GASB 69"), establishes accounting and financial reporting standards related to government combinations and disposals of government operations. The City adopted GASB 69 for the year ended December 31, 2014. GASB 69 requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. There was no impact on the City's Financial Statements as a result of the implementation of GASB 69.
GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees ("GASB 70"), establishes accounting and financial reporting standards for financial guarantees that are nonexchange transactions (nonexchange financial guarantees) extended or received by a state or local government. The City adopted GASB 70 during the year ended December 31, 2014. GASB 70 requires a government that has issued an obligation guaranteed in a nonexchange transaction to report the obligation until legally released as an obligor. This Statement also requires a government that is required to repay a guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed obligation to continue to recognize a liability until legally released as an obligor. When a government is released as an obligor, the government should recognize revenue as a result of being relieved of the obligation. This Statement also provides additional guidance for intra-entity nonexchange financial guarantees involving blended component units and requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. There was no impact on the City's Financial Statements as a result of the implementation of GASB 70.
Other accounting standards that the City is currently reviewing for applicability and potential impact on the financial statements include:
GASB Statement No. 68, Accounting and Financial Reporting for Pensions ("GASB 68"), establishes new financial reporting requirements for most governments that provide their employees with pension benefits through these types of plans. GASB 68 will be effective for the City beginning with its year ending December 31, 2015. GASB 68 replaces 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 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 (RSI). As of December 31, 2014, the City reported a net pension obligation of $8.6 billion on the statement of net position and disclosed within Note 11 a combined unfunded actuarial accrued liability for all of the pension plans of $19.7 billion in accordance with GASB Statement No. 27. During 2014, the Pension Plans (as defined below
49
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
in subsection a) implemented GASB Statement No. 67, Financial Reporting for Pension Plans - an amendment of GASB Statement No. 25, and disclosed a combined net pension liability of $20.1 billion. The City has not yet determined the impact, if any, GASB 68 will have on the enterprise fund financial statements.
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. GASB 71 will be effective for the City beginning with its year ending December 31, 2015. This Statement amends 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.
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.
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 fund's 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
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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.
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 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.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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.
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 treatment facilities 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
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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.
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 ofthe 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.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
d) Assets, liabilities, deferred inflows, deferred outflows, and net position or equity
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.
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 ofthe 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 ten 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.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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 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.
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 $1,184.7 million, of which $83.8 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
Utility structures and improvements
Buildings and improvements
Airport runways, aprons, tunnels, taxiways, and paved roads
Bridge infrastructure
Lighting infrastructure
Street infrastructure
Transit infrastructure
Equipment (vehicle, office, and computer)
25- 100 years 50- 100 years 15 - 40 years 5 - 30 years 10- 40 years
25 years 10- 25 years 40 years 5 - 20 years
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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.
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 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, airline approval is also required before entering into a swap agreement.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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
The City's contributions to the four Pension Plans primarily serving City employees are set by State law. In recent years, the total contributions have been lower than the actuarially required amounts for the Plans, which has served to increase the Plans' unfunded actuarial accrued liabilities. Recurring cash inflows from all sources to the Plans (including City contributions, employee contributions, and investment earnings) have been lower than the cash outlays of the Plans in some recent years. As a result, the Plans have liquidated investments and used assets of the Plans to satisfy their respective current payment obligations in those years. The use of assets by the Plans for these purposes reduces the amount of assets on hand to pay benefits or earn investment returns in the future.
Current State law 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 2016. In each year, the City must contribute the amount needed for each Plan to achieve a 90% Funded Ratio by the end of 2040. Under the enacted State legislation for the Municipal Employees' and Laborers' Plans, known as Public Act 98-641 (P.A. 98-641), the City is required to significantly increase contributions to those two Plans beginning in 2016. During the period 2016 through 2020, the City's contributions to the Municipal Employees' and Laborers' Plans increase by statutorily determined amounts which are not based on actuarial calculations. Beginning in 2021, P.A. 98-641 requires the City to contribute in each year to the Municipal Employees' and Laborers' Plans the amount needed for each Plan to achieve a 90% Funded Ratio by the end of 2055. P.A. 98-641 also makes certain modifications to the automatic annual increases paid to retirees and requires increases in employee contributions toward the cost of their retirement benefits. P.A. 98-641 is currently subject to challenge in a lawsuit alleging its unconstitutionality.
Senate Bill 777 ("SB 777"), an amendment to P.A. 96-1495, passed both houses of the Illinois General Assembly as of May 31, 2015. SB 777 institutes a Phase-in Period until 2020 and a Revised Amortization Period to 2055. A Revised Amortization Period would reduce the annual funding obligation required to reach a 90% Funded Ratio, but extend the number of years over which such payments would need to be made. Enactment of a Phase-in Period would reduce the City's required payment in the initial years to allow for a more gradual phase-in of the requirements of P.A. 96-1495. Although SB 777 has passed both chambers of the Illinois General Assembly, a motion to reconsider the vote on SB 777 has been filed in the Illinois Senate, and accordingly, SB 777 has not been sent to the Governor for consideration. The City makes no representation as to whether SB 777 will be enacted.
Liquidity
The City's general obligation bonds, sales tax revenue bonds and motor fuel tax revenue bonds were downgraded by Moody's, Standard & Poor's and Fitch Ratings in May 2015. Moody's cited in its rating action the Illinois Supreme Court's decision on May 8, 2015, which found the State Pension Reform Act unconstitutional, as limiting the City's options for addressing its unfunded pension liabilities. Moody's downgraded the City's general obligation, sales tax revenue and motor fuel tax revenue credits to Ba1. Moody's indicated that further downgrades could follow upon the occurrence of any of the following: (a) a determination by a court of law that P.A. 98-641 is unconstitutional; (b) continued growth in the debt and/or unfunded pension liabilities of the City and overlapping governments; and (c) narrowing of the City's fund balances and liquidity. At the same time, Moody's downgraded the City's Water senior lien revenue bonds from A2 to Baal, the Water second lien revenue bonds from A3 to Baa2 and the City's Wastewater senior lien bonds from A3 to Baa2 and the Wastewater second lien revenue bonds from Baal to Baa3, each with a negative outlook.
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In May 2015, Standard and Poor's downgraded the rating of the City's general obligation bonds to A-from A+, Water senior lien and Wastewater senior lien revenue bonds to A from AA, and Water second lien revenue bonds and Wastewater second lien revenue bonds to A- from AA-.
In May 2015, Fitch Ratings downgraded the rating of the City's general obligation bonds and sales tax revenue bonds to BBB+ from A-.
The rating actions by Standard & Poor's and Fitch, in part, cited the Moody's rating action and the resulting uncertainty regarding the City's liquidity position.
Due to the Moody's downgrade of the City's general obligation credit to Ba1 (below investment grade) from Baa2, an event of default was triggered under credit agreements the City had entered into with certain banks to provide letters of credit supporting the City's general obligation debt (including the general obligation variable rate demand bonds) and to provide letters of credit or revolving lines of credit for the City's general obligation commercial paper notes and line of credit facilities, which consisted of general obligation revolving lines of credit from four banks and two series of general obligation commercial paper notes (one series backed by a letter of credit from Wells Fargo Bank and the other series backed by a letter of credit from Bank of Montreal). Upon the event of default, the banks providing letters of credit for the general obligation debt as well as the banks supporting the commercial paper/line of credit program had the right to demand immediate repayment of amounts owed under their credit agreements. The Moody's downgrade also resulted in a termination event under the City's existing interest rate swaps on its general obligation variable rate bonds; pursuant to those swap agreements, the swap counterparties had the right to set an early termination date for the swaps and demand a termination payment from the City.
Shortly after the Moody's downgrades and resulting event of default/termination event, the City terminated the letter of credit from Wells Fargo Bank; there were no commercial paper notes outstanding secured by that letter of credit. With respect to the other banks supporting the commercial paper/line of credit program, the banks providing letters of credit for the City's general obligation debt, and the counterparties on the interest rate swaps for its general obligation variable rate bonds, the City entered into forbearance agreements pursuant to which the affected banks agreed to temporarily forbear from exercising their respective rights resulting from the event of default/termination event. In May and June 2015, the City converted ($674 million) and/or redeemed ($132 million) all of its general obligation variable rate bonds and converted sales tax variable rate revenue bonds ($112 million) to long-term fixed rate bonds and terminated the associated letters of credit and interest rate swaps (termination payment of $221 million) for those bonds. For the agreements with the banks supporting the commercial paper/line of credit program, the forbearance agreements ($849 million) extend to September 30, 2015, but can terminate earlier if: (i) there are any other events of default by the City under the related credit agreements, (ii) there are further downgrades of the rating on the City's general obligation bonds, or (iii) the forbearance period in one of the other forbearance agreements terminates prior to its scheduled end date. The City plans to issue long-term general obligation fixed rate bonds in mid-2015 to repay most of the outstanding amounts under the commercial paper/line of credit program.
With respect to the City's Series 2000 and Series 2004 Water Second Lien Revenue Bonds, the downgrades triggered defaults under certain credit and/or liquidity facilities, and for the Series 2008C Wastewater Second Lien Revenue Bonds, certain continuing covenant agreements with those bondholders. The Moody's downgrades also triggered termination events under interest rate swap agreements relating to these bonds. In response to the triggering of these defaults and termination events, the City entered into forbearance agreements with the holders of its Series 2008C Wastewater Second Lien Revenue Bonds ($332 million) to June 30, 2016; and amended and/or transferred the interest rate swap agreements for its Water Second Lien Revenue Bonds (estimated termination value of $125 million) and its Wastewater Second Lien Revenue Bonds (estimated termination value of $75 million) to remove such termination event from the swap agreements prior to any demand being made for a termination payment by the counterparties; and obtained a waiver of the event of default from the provider of a letter of credit relating to the Series 2000 Water Second Lien Revenue Bonds. With respect
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CITY OF CHICAGO, ILLINOIS
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YEAR ENDED DECEMBER 31, 2014
to the forbearance agreements with the holders of the Series 2008C Wastewater Second Lien Revenue Bonds, the forbearance period under each of those forbearance agreements extends to June 30, 2016, but can terminate earlier if: (i) there are any other events of default by the City under the related continuing covenant agreements, (ii) there are further downgrades of the rating on the Wastewater Second Lien Bonds, or (iii) the forbearance period in one of the other forbearance agreements for the Wastewater Second Lien Bonds terminates prior to its scheduled end date. With respect to the Series 2008C Water and Wastewater swap agreements, a ratings downgrade below Baa3 on the Second Lien Revenue Bonds for each of the respective credits would trigger a termination event with respect to the related swap agreement. With respect to the Water credit and/or liquidity facilities, a ratings downgrade below Baa3 on the Water Second Lien Revenue.Bonds would trigger an event of default.
The City believes its expected revenues along with current assets are sufficient to fund its operations on a continuing basis, through 2015 and beyond, notwithstanding the City's plans to issue additional bonds in 2015.
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. 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 investement 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 investement in capital assets."
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 $1,242.8 million are as follows (dollars in thousands):
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YEAR ENDED DECEMBER 31, 2014
Deferred inflows - property tax $ 983,616
Deferred inflows - grants 259,140
Net adjustment to increase fund balance - total governmental funds - to arrive at net position -
governmental activities '$ 1,242,756
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 $19,390.5 million are as follows (dollars in thousands):
Long-term liabilities:
Total bonds, notes and certificates payable $ 9,606,475
Pension and other postemployment benefits 8,884,304
Lease obligation 116,858
Pollution remediation 8,532
Claims and judgments 900,616
Total Long-term liabilities 19,516,785
Accounts payable - infrastructure retainage 15,272
Bonds, notes and other obligations payable current (86,059)
Other assets - issuance costs (bond insurance) (16,033)
Deferred outflows-unamortized loss on refunding (158,102)
Accrued interest 2,330
Derivative instrument liability 25,538
Accrued and other liabilities - compensated absences 90,860
Net adjustment to reduce fund balance - total governmental funds - to arrive at net position -
governmental activities $ 19,390,591
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 $303.2 million are as follows (dollars in thousands):
Capitalized asset expenditures $ 656,672
Donated assets 14,476
Depreciation expense (367,845)
Loss - disposal of equipment (136)
Net adjustment to increase net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities _$_ 303,167
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NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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 $115.6 million are as follows (dollars in thousands):
Proceeds of debt $ (1,004,347)
Premium (17,465)
Payment of refunded bond escrow agent 302,862
Principal retirement 599,395
Interest expense 3,643
Cost of Issuance 287
Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ (115,625)
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 $1,250.4 million are as follows (dollars in thousands):
Claims and judgments $ (20,849)
Pension and other post employment benefit
liabilities and contractual obligations (1,209,339)
Pollution remediation 66
Vacation (1,532)
Lease obligations (18,518)
Inventory (290)
Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ (1,250,462)
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 November 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
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NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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.
v) 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.
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, 2014 is as follows (dollars in thousands):
General
Fund
Revenues, GAAP Basis $ 3,176,150
Add:
Transfers In 39,700
Prior Year's Surplus Utilized 45,472
Revenues, Budgetary Basis $ 3,261,322
Expenditures, GAAP Basis $ 3,231,258
Add:
Transfers Out 10,081
Encumbered in 2014 29,223
Deduct:
Payments on Prior Years' Encumbrances (6,943)
Provision for Doubtful Accounts and Other (2,297)
Expenditures, Budgetary Basis $ 3,261,322
c) Individual Fund Deficits include the Chicago Skyway Fund, an Enterprise Fund, which has a fund deficit of $1,364.3 million which management anticipates will be funded through recognition of deferred inflows. Midway International Airport Fund has a fund deficit of $6.7 million which will be funded through future revenues. Federal State and Local Grants, a governmental fund, has a deficit of $225.0 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 $955.4 million which will be funded through the recognition of deferred inflows. Also, the Bond, Note Redemption and Interest Fund has a deficit of $26.9 which will be funded through the issuance of General Obligation Bonds.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
4) Restricted and Unrestricted Cash, Cash Equivalents and Investments
a) Investments As of December 31, 2014, 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. Agencies* S 892,426 $ 3,025,098 $ 172,590 $ 112,073 $ 4,202,187
Commercial Paper 556,993 - - - 556,993
Corporate Bonds 73,420 182,564 120,707 73,998 450,689
Corporate Equities 910 - - - 910
Municipal Bonds 72,144 300,170 69,591 11,209 453,114
Certificates of Deposit and
Other Short-term 1,593,657 - - ' 1,593,657
Total City Funds $ 3,189,550 $ 3,507,832 $ 362,888 $ 197,280 $ 7,257,550
*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 S 293,168 $ 369,223 S 155,772 $ 467,811 $ 1,285,974
Corporate Bonds 861,112 465,027 394,251 321,362 2,041,752
Corporate Equities 5,629,900 - - - 5,629,900
Pooled Funds 66,143 22,339 - - 88,482
Real Estate 634,015 - - - 634,015
Securities Received from
Securities Lending 906,189 - - - 906,189
Venture Capital 435,340 - - - 435,340
Certificates of Deposit and
Other Short-term 178,686 - - - 178,686
Derivatives 787 - - - 787
Other 36,539 - - - 36,539
Total Pension Trust Funds $ 9,041,879 S 856,589 S 550,023 $ 789,173 $ 11,237,664
Total $ 12,231,429 $ 4,364,421 $ 912,911 $ 986,453 $ 18,495,214
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, and shall show on their face that they are fully payable as to principal and interest, where applicable, if any, within ten years from the date of purchase.
Credit Risk - The Code limits investments in commercial paper to banks whose senior obligations are rated in the top two rating categories by at least two national rating agencies and who are required to maintain such rating during the term of such investment. The Code also limits investments to domestic money market mutual funds regulated by, and in good standing with, the Securities and Exchange Commission. Certificates of Deposit are also limited by the Code to national banks which provide collateral of at least 105 percent by marketable U.S. government securities marked to market at least monthly; or secured by a corporate surety bond issued by an insurance company licensed to do business
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NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
in Illinois and having a claims-paying rating in the top rating category, as rated by a nationally recognized statistical rating organization maintaining such rating during the term of such investment. The following schedule summarizes the City's and Pension Trust Funds exposure to credit risk (in thousands):
Quality Rating City
Aaa/AAA $ 176,616
Aa/AA 4,150,011
A/A 252,722
Baa/BBB
Ba/BB
B/B
Caa/CCC
Ca
C/CC
DID
P1/A1 888,599
Not Rated* 1,789,602
Total Funds $ 7,257,550
116,827 136,607 252,464 352,443 162,158 150,649 36,095 828 350 528 357,957 932,256
Quality Rating Pension Trust Funds
Aaa/AAA $
Aa/AA
A/A
Baa/BBB
Ba/BB
B/B
Caa/CCC
Ca
C/CC
D/D
Not Rated
2,499,162
Other
$
* Not rated is primarily composed of money market mutual funds.
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's deposits, depository institutions are to maintain collateral pledges on City deposits during the term of the deposit of at least 102 percent of marketable U.S. government, or approved securities or surety bonds, issued by top-rated insurers. Collateral is required as security whenever deposits exceed the insured limits of the FDIC. The bank balance of cash and certificates of deposit with the City's various municipal depositories was $318.2 million. 97.7 percent of the bank balance was either insured or collateralized with securities held by City agents in the City's name. $7.4 million was uncollateralized at December 31, 2014, and thus was subject to custodial credit risk.
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.
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YEAR ENDED DECEMBER 31, 2014
v) Foreign Currency Risk - In the case of the Pension Trust Funds, 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 $ 62,870
Brazilian real 43,414
British pound 303,227
Canadian dollar 79,768
Chilean peso 2,666
Chinese yuan (1,493)
Columbian peso 1,941
Czech Republic koruna 2,661
Danish krone 21,222
Egyptian pound 434
European euro 394,560
Hong Kong dollar 185,487
Hungarian forint 832
Indian rupee 47,536
Indonesian rupiah 19,691
Japanese yen 317,654
Malaysian ringgit 7,704
Mexican peso 29,391
New Israeli shekel 9,136
New Romanian leu 377
New Taiwan dollar 30,860
New Zealand dollar 1,835
Nigeria Naira (34)
Norwegian krone 19,080
Pakistan rupee 302
Peruvian Nuevo Sol |910|Philippines peso 3,252
Polish zloty 3,122
Qatari riyal 610
Russian ruble 337
Singapore dollar 18,145
South African rand 40,395
South Korean won 58,148
Swedish krona 57,088
Swiss franc 101,272
Taiwan dollar 5,175
Thailand baht 14,232
Turkish lira 19,608
United Arab Emirates dirham... 4,333
Urguayan peso Uruguayo 466
Total Pension Trust Funds $ 1,907,307"
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NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
vi) The following schedule summarizes the cash and investments reported in the basic financial statements (dollars in thousands):
Per Note 4:
Investments - City $ 7,257,550
Investments - Pension Trust Funds 11,237,664
$ 18,495,214
Per Financial Statements:
Restricted Investments $ 3,324,414
Unrestricted Investments 1,835,373
Investments with Fiduciary Funds 10,207,137
Investments with Escrow Agent 417,522
Invested Securities Lending Collateral 906,189
Investments Included as Cash and Cash
Equivalents on the Statement of Net Position 1,804,579
$ 18,495,214
5) Property Tax
The City's property tax becomes 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 has adopted an ordinance beginning 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, based on the ordinance. 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.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
6) Interfund Balances and Transfers
a) The following balances at December 31, 2014 represent due from/to balances among all funds (dollars in
thousands):
Fund Type/Fund Due From Due To
Governmental Funds:
General $ 109,514 $ 276,805
Federal, State and Local Grants 10,059 296,159
Special Taxing Areas 423,933 11,682
Service Concession and Reserve 5,000 5,140
Bond, Note Redemption and Interest - 85,700
Community Development and Improvement Projects.. 97,053 56,996
Nonmajor Governmental Funds 79,210 94,698
Total Governmental Funds 724,769 827,180
Enterprise Funds:
Water 91,224 20,130
Sewer 29,416 71,228
Chicago Midway International Airport 527 9,134
Chicago-O'Hare International Airport 33,751 3,519
Chicago Skyway - 15
Total Enterprise Funds 154,918 104,026
Fiduciary activities:
Pension Trust 51,519
Total Fiduciary activities 51,519 -
Total $ 931,206 $ 931,206
The balances resulted 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, 2014 represent interfund transfers among all funds (dollars in thousands):
Fund Type/Fund Transfer In Transfer Out
Governmental Funds:
General $ 39,700 $ 10,081
Special Taxing Areas 97,513 44,463
Service Concession and Reserve 5,000 13,900
Bond, Note Redemption and Interest 366,198 164,268
Community Development and Improvement Projects.. 7,004 279,009
Nonmajor Governmental Funds 137,171 140,865
Total Governmental Funds $ 652,586 $ 652,586
Transfers are used to move revenues from the fund that the statute or budget requires to collect them to the fund that 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.
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7) Capital Assets
a) Capital Assets activity for the year ended December 31, 2014 was as follows (dollars in thousands):
Balance Additions Disposals Balance
January 1, and and December 31,
2014 Transfers Transfers 2014
Governmental activities:
Capital assets, not being depreciated:
Land $ 1,392,613 $ 220 $ - $ 1,392,833
Works of Art and Historical Collections 30,749 14,483 - 45,232
Construction in Progress 260,192 576,209 (290,872) 545,529
Total capital assets, not being depreciated 1,683,554 590,912 (290,872) 1,983,594
Capital assets, being depreciated:
Buildings and Other Improvements 2,545,699 28,451 - 2,574,150
Machinery and Equipment 1,381,545 68,123 (10,374) 1,439,294
Infrastructure 8,151,833 258,959 : 8,410,792
Total capital assets, being depreciated 12,079,077 355,533 (10,374) 12,424,236
Less accumulated depreciation for:
Buildings and Other Improvements 877,695 66,389 - 944,084
Machinery and Equipment 1,155,690 58,534 (10,238) 1,203,986
Infrastructure 3,735,664 242,922 -_ 3,978,586
Total accumulated depreciation 5,769,049 367,845 (10,238) 6,126,656
Total capital assets, being depreciated, net 6,310,028 (12,312) (136) 6,297,580
Total governmental activities $ 7,993,582 $ 578,600 $ (291,008) $ 8,281,174
Business-type activities:
Capital assets, not being depreciated:
Land $ 1,016,635 $ 2,066 $ - $ 1,018,701
Construction in Progress 1,207,828 701,092 (652,656) 1,256,264
Total capital assets, not being depreciated 2,224,463 703,158 (652,656) 2,274,965
Capital assets, being depreciated:
Buildings and Other Improvements 15,138,127 840,309 73,240 16,051,676
Machinery and Equipment 682,588 5,411 (2,366) 685,633
Total capital assets, being depreciated 15,820,715 845,720 70,874 16,737,309
Less accumulated depreciation for:
Buildings and Other Improvements 4,486,528 339,691 (1,605) 4,824,614
Machinery and Equipment 346,314 21,336 (2,476) 365,174
Total accumulated depreciation 4,832,842 361,027 (4,081) 5,189,788
Total capital assets, being depreciated, net 10,987,873 484,693 74,955 11,547,521
Total business-type activities $ 13,212,336 $ 1,187,851 $ (577,701) $ 13,822,486
Total Capital Assets $ 21,205,918 $ 1,766,451 $ (868,709) $ 22,103,660
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
b) Depreciation expense was charged to functions/programs of the City as follows (dollars in thousands):
Governmental activities:
General Government $ 44,735
Public Safety 27,464
Streets and Sanitation 14,936
Transportation 251,702
Health 955
Cultural and Recreational 28,053
Total Depreciation Expense - Governmental Activities $ 367,845
Business-type Activities:
Water $ 54,802
Sewer 34,061
Chicago Midway International Airport 46,044
Chicago-O'Hare International Airport 215,918
Chicago Skyway 10,202
Total Depreciation Expense - Business-type Activities $ 361,027
8) Leases
a) Operating Leases
The City leases building and office facilities under noncancelable operating leases. Total costs for such leases were approximately $13.6 million for the year ended December 31, 2014.
The future minimum lease payments for these leases are as follows (dollars in thousands):
$ 8,986
4,096
2,813
2,457
2,183
2020-2024 7,196
2025 - 2029 336
2030 - 2034 254
2035 - 2039 216
2040 - 2042 66
Total Future Rental Expense $ 28,603
b) Capital Leases
During 2003, the City entered into lease and lease back agreements with third parties pertaining to 911 Center Qualified Technological Equipment (QTE), with a book value of $143.3 million at December 31, 2003. Under the QTE lease agreement, which provided 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 sublease. Under the sublease, the City was required to make future minimum lease payments.
69
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
In June 2014, the City terminated the two lease/leaseback transactions relating to its 911 and 311 systems (QTE-1 and QTE-2). Under the termination agreements, the leases were terminated and the City regained unrestricted title to its 911 and 311 systems. Under the termination agreement relating to QTE-1, the City paid a gross amount of $1.0 million to Bank of America N.A. To terminate the QTE-2 transaction, the City made a net payment of $1.3 million to SMBC Leasing Investment LLC.
During 2005, the City entered into a sale and leaseback agreement with third parties pertaining to the City owned portion of a rapid transit 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. Under the lease, the City is required to make future minimum lease payments.
The future minimum payments for this lease are as follows (dollars in thousands):
Year Ending Total
December 31,
$
9,000
9,000
18,977
3,003
2020-2024 15,016
2025 - 2029 2,000
2030 - 2032 165,164
Total Minimum Future Lease Payments 222,160
Less Interest 105,302
Present Value of Minimum
Future Lease Payments $ 116,858
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, 2014 (dollars in thousands):
$ 93,228
93,222
94,218
93,283
91,967
2020-2024 8,144
2025 - 2029 9,432
Total Minimum Future Rental Income _$ 483,494
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 $418.5 million, including contingent rentals of $89.0 million.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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, 2014 (dollars in thousands):
$ 48,634
48,171
26,763
26,609
26,609
2020-2024 133,045
2025 - 2029 133,045
Total Minimum Future Rental Income _$ 442,876
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 $92.9 million, including contingent rentals of $39.6 million.
9) Short-term Debt
Matured bonds represent principal due on coupon bonds in which the coupons have not been presented for payment. As of December 31, 2014, the outstanding balance was at $0.7 million.
Line of Credit and Commercial Paper Notes The City issues commercial paper notes and maintains revolving lines of credit for working capital in anticipation of receipt of other revenue and to fund capital projects, debt refinancing or restructuring; the latter are typically repaid from proceeds of later issuances of general obligation bonds. Historically, the commercial paper notes have been supported by underlying letters of credit that extend beyond one year from the date of the financial statements and the lines of credit have also extended beyond one year from the date of the financial statements. Thus, the outstanding amounts at December 31 have been historically recorded as long-term debt.
Due to the Moody's downgrade of the City's general obligation credit in May 2015, see Note 17, an event of default was triggered under each of the revolving credit agreements and the letter of credit reimbursement agreements for the commercial paper notes. Subsequent to December 31, 2014 the City terminated the letter of credit from Wells Fargo Bank; no commercial paper notes secured by that letter of credit were then outstanding. For the remaining banks, the City entered into forbearance agreements pursuant to which the affected banks agreed to forbear from exercising their respective rights resulting from the event of default. The forbearance period under each of the forbearance agreements extends to September 30, 2015, but can terminate earlier if: (i) there are any other events of default by the City under the related credit agreements, (ii) there are further downgrades of the rating on the City's general obligation bonds, or (iii) the forbearance period in one of the other forbearance agreements terminates prior to its scheduled end date. As the forbearance period with respect to the credit agreements and the underlying letter of credit associated with the outstanding commercial paper notes is less than one year from the date of the financial statements, the outstanding general obligation commercial paper notes and lines of credit at December 31, 2014 have been recorded as fund liabilities in the fund financials, as follows (dollars in thousands):
Outstanding
Type Fund at 12/31/14
Line of Credit Community Development and Improvement Projects $75,000
Commercial Paper Community Development and Improvement Projects 2,800 Commercial Paper Bond, Note Redemption and Interest 198,086
Commercial Paper Other Governmental Funds 21,423
Total $297,309
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
10) Long-term Obligations
a) Long-term Debt activity for the year ended December 31, 2014 was as follows (in thousands):
Balance January 1, 2014*
Governmental activities: Bonds and notes payable:
General obligation debt $ 7,730,178
Tax increment 88,397
Revenue 753,162
8,571,737
Add unamortized premium 160,014
Add accretion of capital appreciation bonds 293,789
Total bonds, notes and certificates payable 9,025,540
Other liabilities:
Pension and other postemployment
benefits obligations 7,589,929
Lease obligations 171,674
Pollution Remediation 8,598
Claims and judgments 879,768
Total other liabilities 8,649,969
Total governmental activities $ 17,675,509
Additions
Reductions
883,420 33,410 123,063 1,039,893
17,465 32,595 1,089,953
278,092 47,412 132,430 457,934
22,712 28,372 509,018
Balance December 31, 2014
8,335,506 74,395 743,795 9,153,696
1,340,753 20,805
170,356 1,531,914
46,378 75,621 66
149,508 271,573
154,767 298,012 9,606,475
8,884,304 116,858 8,532 900,616
9,910,310
$ 2,621,867 $ 780,591 $ 19,516,785
Amounts Due within One Year
100,094 9,035 18,400 127,529
22,213 149,742
164,940 164,940
314,682
Business-type activities:
Revenue bonds and notes payable:
Water $ 1,996,858
Sewer 1,369,459
Chicago-O'Hare International Airport 7,665,205
Chicago Midway International Airport 1,495,008
12,526,530
Add unamortized premium 330,022
Add accretion of capital appreciation bonds 89,158
Total business-type activities S 12,945,710
$ 428,889 $ 43,976 $ 2,381,771 $ 51,535
307,405 37,929 1,638,935 39,837
31,026 168,895 7,527,336 189,605
896,520 867,938 1,523,590 17,265
1,663,840 1,118,738 13,071,632 298,242
149,885 37,648 442,259
8,720 9,170 88,708 9,571
$ 1,822,445 S 1,165,556 $ 13,602,599 $ 307,813
Total long-term obligations $ 30,621,219 $ 4,444,312 S 1,946,147 $ 33,119,384 $ 622,495
* Commercial Paper and Line of Credit are no longer included due to reclassification as short term debt.
The Pension obligation liability will be liquidated through a Special Revenue Fund (Pension Fund) as provided by tax levy and State Personal Property Replacement Tax revenues.
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i
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
b) Issuance of New Debt
General Obligation Bonds
General Obligation Bonds, Project and Refunding Series 2014A ($432.6 million), and Taxable Project and Refunding Series 2014B ($450.8 million) were sold at a premium in March 2014. The bonds have interest rates ranging from 4.0 percent to 6.314 percent and maturity dates from January 1, 2018 to January 1, 2044. Net proceeds of $881.6 million will be used to finance infrastructure improvements; transportation improvements; grants or loans to assist not-for-profit organizations or educational or cultural institutions; or to assist other municipal corporations or units of local government, or school districts; cash flow needs of the City; acquisition of personal property; acquisition, demolition, remediation or improvement of real property for industrial, commercial or residential purposes; constructing, equipping, altering and repairing various municipal facilities including fire stations, police stations, libraries, senior and health centers and other municipal facilities; enhancement of economic development within the City by making grants or deposits to secure obligations of not-for-profit or for-profit organizations doing or seeking to do business in the City; litigation judgments or settlements agreements involving the City, including escrow accounts or other reserves needed for such purposes; payments of certain pension contributions; repayment of Commercial Paper Notes and Lines of Credit; providing for facilities, services and equipment to protect and enhance public safety, and other uses permitted by the Ordinance ($628.0 million), to refund certain maturities of bonds outstanding ($185.2 million), and to fund capitalized interest ($68.3 million). The current refunding of the bonds increased the City's total debt service payments by $217.8 million, resulted in a net economic loss of approximately $13.5 million and a book loss of approximately $7.9 million.
Motor Fuel Tax Revenue Bonds
Motor Fuel Tax Revenue Refunding Bonds, Series 2013 ($105.9 million) were sold at a premium in June 2014. The bonds have interest rates ranging from 2.0 percent to 5.0 percent and maturity dates from January 1, 2015 to January 1, 2033. Net proceeds of $114.7 million and prior bonds reserves of $2.9 million were used to advance refund all maturities of the outstanding Motor Fuel Tax Revenue Bonds, Series 2003 ($114.7 million) and fund the debt service reserve account ($2.9 million). The advance refunding of the bonds decreased the City's total debt service payments by $13.6 million and resulted in an economic gain of $9.9 million and a book loss of approximately $2.4 million.
Tax Increment Allocation Bonds
Tax Increment Allocation Revenue Refunding Bonds (Pilsen Redevelopment Project), Series 2014A ($17.3 million) and 2014B Taxable ($16.1 million) were sold at a premium in November 2014. The bonds have interest rates ranging from 0.95 percent to 5.0 percent and maturity dates from June 1, 2015 to June 1, 2022. Net proceeds of $35.0 million and prior bonds reserves of $5.1 million were used to refund all maturities of principal and interest outstanding on the Series 2004B Pilsen Bonds ($25.9 million), the Series 2004G Bonds for the Pilsen Redevelopment Project ($10.7 million) and fund the debt service reserve account ($3.5 million). The current refunding of the bonds decreased the City's total debt service payments by $7.9 million, resulted in a net economic gain of approximately $5.4 million and a book loss of approximately $1.1 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. There have been loan disbursements made to the City in the total of $17.2 million as of December 31, 2014.
73
I
!
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
v) 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 loans is January 1, 2052. There were no loan disbursements made to the City as of December 31, 2014.
Chicago Midway International Airport Second Lien Revenue Bonds, Series 2014 A&B ($771.8 million) were sold at premium in June 2014. The bonds have interest rates ranging from 4.0 percent to 5.0 percent and maturity dates from January 1, 2019 to January 1, 2041. Net proceeds of $842.2 and other monies ($20.6 million) were used to finance the costs of certain Airport projects ($114.9 million), to refund certain maturities of bonds outstanding ($673.7 million), fund capitalized and debt service reserve ($16.5 million) and to repay the Commercial Paper notes ($57.7 million). The current refunding decreased the City's total debt service payments by $135.7 million, resulted in a net economic gain of approximately $69.2 million and a book loss of approximately $15.9 million.
Chicago Midway International Airport Second Lien Refunding Revenue Bonds, Series 2014C ($124.7) were sold in June 2014. The bonds were issued at a daily rate of 0.08 percent. The bonds have maturities of January 1, 2041 to January 1, 2044. Net proceeds of $124.4 million were used to refund certain maturities of bonds outstanding ($124.1 million). The current refunding resulted in a book loss of approximately of $0.6 million.
Second Lien Water Revenue Bonds, Series 2014 ($367.9 million) were sold at a premium in September 2014. The bonds have interest rates ranging from 3.0 percent to 5.0 percent and maturity dates from November 1, 2015 to November 1, 2044. Net proceeds of $400.0 million will be used to finance certain costs of improvements and extensions to the water system.
On May 27, 2014, a loan agreement was signed with the Illinois Environment Protection Agency to install water meters at residences throughout the City that are currently unmetered. In 2014 the Water Fund drew $6.5 million from this loan agreement. The loan has an interest rate of 2.295% with maturity dates from September 21, 2014 to March 21, 2034.
On August 5, 2013, a loan agreement was signed with the Illinois Environment Protection Agency to replace approximately 10 miles of damaged, undersized and leaking watermains located throughout the City with new 8-inch diameters watermain. In 2014 the Water Fund drew $39.4 million from this loan agreement. The loan has an interest rate of 1.93% with maturity dates from January 16, 2015 to July 16, 2034.
On September 19, 2013, a loan agreement was signed with the Illinois Environment Protection Agency to install water meters at residents throughout the City that are currently unmetered. Installations will be performed by a private contractor. Meters will be equipped with an AMR (Automatic Meter Reading) capabilities. In 2014 the Water Fund drew $15.0 million from this loan agreement. The loan has an interest rate of 1.93% with maturity dates from April 16, 2015 to October 16, 2034.
Second Lien Wastewater Transmission Revenue Bonds, Series 2014 ($292.4 million) were sold at a premium in September 2014. The bonds have interest rates ranging from 3.0 percent to 5.0 percent and maturity dates from January 1, 2016 to January 1, 2044. Net proceeds of $320.0 million will be used to finance certain costs of improvements and extensions to the wastewater system.
In 2014, the Sewer Fund drew $15.0 million from the Illinois Environment Protection Agency loan agreement line to replace existing sewer pipes throughout the city. The loan has an interest rate of 2.295 percent with maturity dates from March 4, 2015 to September 4, 2034.
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I
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
In 2014, $31.0 million of Chicago O'Hare International Airport Commercial Paper Notes Series 2013 were issued. Outstanding O'Hare Commercial Paper Notes at December 31, 2014 were $51.0 million. The proceeds were used to finance portions of the cost of authorized airport projects.
In 2014, $30.0 million of Chicago Midway International Airport Commercial Notes Series 2013 were issued. The proceeds were used to finance portions ofthe costs of authorized airport projects.
c) Annual requirements listed below for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2015 have been excluded because funds for their payment have been provided for. Annual requirements to amortize debt outstanding as of December 31, 2014 are as follows (dollars in thousands):
General Obligation Tax Increment
Year Ending Principal Interest Principal Interest
December 31,
$ 235,676 $ 438,328 $ 9,335 $ 3,272
251,072 428,190 10,640 2,795
274,537 417,278 11,795 2,306
287,152 405,157 16,010 1,757
296,244 392,075 6,020 960
2020-2024 1,554,715 1,780,488 16,195 1,392
2025-2029 1,532,769 1,452,485
2030-2034 1,790,238 1,025,642
2035-2039 1,277,419 554,626
2040-2043 772,425 94,623 : -
$8,272,247 $6,988,892 $ 69,995 $ 12,482
Revenue Business-type Activities
Year Ending Principal Interest Principal Interest
December 31,
2015 $ 18,170 $ 34,316 $ 314,322 $ 640,650
17,880 33,397 392,640 624,517
18,250 32,487 445,178 606,773
19,150 31,590 457,732 586,321
20,335 30,649 441,142 567,407
2020-2024 119,187 137,871 2,194,324 2,519,632
2025-2029 141,116 120,681 2,614,614 1,963,663
2030-2034 132,133 126,900 3,083,740 1,208,250
2035-2039 200,730 39,362 2,134,220 517,087
2040-2043 38,445 1,922 699,065 62,832
$ 725,396 $ 589,175 $12,776,977 $ 9,297,132
For the debt requirements calculated above, interest rates for fixed rate bonds debt range from 1.92 percent to 7.78 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, 2014. 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
75
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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.
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. The notional amounts related to bonds maturing on January 1, 2015 have been excluded in the following table because funds for their payment have been provided for.
Changes in Fair Value Classification Amount
Governmental Activities
Hedges:
Deferred Outflow of
Interest Rate Swaps Resources $ (15,850)
Investment Derivative Instruments:
Investment
Interest Rate Swaps Income (4,821)
Business-type Activities
Hedges:
Deferred Outflow of
Interest Rate Swaps Resources (50,998)
Total
Notional Amount
Amount
Fair Value at December 31, 2014
Deferred Outflow of Resources
Classification
$ (158,328) $ 1,192,175
(32,467)
363,700
Investment Revenue
Deferred Outflow of Resources
924,280
(200,095) $ (390,890)
(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, 2014, 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. The notional amounts related to bonds maturing on January 1, 2015 have been excluded below because funds for their payment have been provided for. 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, 2014, are as follows (dollars in thousands):
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Associated Bond Issue
Hedging Instruments Governmental Activities:
Notional Effective Amounts Date
Counter-Termi- party Fair nation Credit Values Date Rating
150,000 11/8/2007 Pay 3.9982%; receive SIFMA 50,000 11/8/2007 Pay 3.9982%; receive SIFMA 200,000 1/1/2014 Pay SIFMA; receive 72.5% of 1 Mo. LIBOR'
(43,370) 1/1/2042 A3/A (5,443) 8/1/2018 Baa2/A-(17,373) 1/1/2042 Aa3/AA-
155,953 8/17/2005 Pay 4.104%; receive SIFMA
66,837 8/17/2005 Pay 4.104%; receive SIFMA
Pay SIFMA+.045%;
100,000 1/1/2014 receive 72.5% of 1 Mo. LIBOR *
61,395 1/1/2014 Pay SIFMA; receive 72.5% of 1 Mo. LIBOR*
61,395 1/1/2014 Pay SIFMA; receive 72.5% of 1 Mo. LIBOR*
Pay SIFMA+ .05%;
GO VRDB (Series 2005D) 207,880 1/1/2031 receive 72.5% of 1 Mo. LIBOR *
Sales Tax Revenue Refunding Bonds
(VRDB Series 2002) 111,715 6/27/2002 Pay 4.23%; receive 75.25% of 3 Mo. LIBOR
Tax Increment Allocation Bonds
(Near North TIF, Series 1999A) 27,000 9/1/1999 Pay 5.084%; receive 67% of 1 Mo. LIBOR
Business-type Activities:
Chicago Midway International Airport 84,405 12/14/2004 Pay 4.174%; receive SIFMA Plus .05%
Revenue Bonds (Series 2004C&D) 56,270 4/21/2011 Pay 4.247%; receive SIFMA Plus .05%
(23,181) (20,287)
(6,096) (3,343) (3,343)
7/1/2020 Baa1/A
1/1/2040 Aa3/A+
1/1/2031 Aa2/AA-
1/1/2031 A3/A
1/1/2031 A3/A
(6,028) 1/1/2040 A2/A
(26,657) 1/1/2034 Aa3/A+
(3,207) 1/1/2019 A2/A
(17,678) 1/1/2035 Baa1/A (12,450) 1/1/2035 Aa3/AA-
Wastewater Transmission Variable Rate Revenue Bonds (Series 2008C)
Pay 3.886%; receive 95% of 3 Mo. LIBOR
(if LIBOR is < 3%) or 232,560 1/3/2011 67% of 3 Mo. LIBOR (if LIBOR is > 3%)
Pay 3.886%; receive SIFMA 49,835 7/29/2004 (if LIBOR is < 3%) 49,835 7/29/2004 or 67% of 1 Mo. LIBOR (if LIBOR is > 3%)
(11,472) (11,362)
(49,027) 1/1/2039 A3/A
1/1/2039 A2/A 1/1/2039 Aa3/A+
Water Variable Rate Revenue Refunding Bonds (Series 2004)
Second Lien Water Revenue Refunding Bonds (Series 2000)
100,000
173,345 8/5/2004 Pay 3.8694%; receive 67% of 1 Mo. Libor 182,230 8/5/2004 Pay 3.8669%; receive 67% of 1 Mo. Libor
4/16/2008 Pay 3.8694%; receive 67% of 1 Mo. Libor
(30,996) 11/1/2031 A2/A (37,650) 11/1/2031 Aa3/AA-
(29,460) 11/1/2030 A2/A
Investment Instruments
Governmental Activities:
Pay 4.052%;
136,385 8/7/2003 receive66.91%of10YrUSDISDASwapRate Pay 4.052%,
45,465 8/7/2003 receive 66.91% of 10 Yr USD ISDA Swap Rate Pay 66.91% of 10 Yr USD ISDA Swap Rate + 45,465 3/1/2014 .05%; receive 75% of 1 Mo. LIBOR *
Pay 66.91% of 10 Yr USD ISDA Swap Rate 136,385 11/1/2014 receive 75% of 1 Mo. LIBOR *
(20,434) 1/1/2034 Aa3/AA-
(6,755) 1/1/2034 Aa3/A+
(1,361) 1/1/2019 A2/A
(3,917) 1/1/2019 Aa2/AA-
Total $ (390,890)
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 2015.
Type and objective for all the Swaps is the same, as mentioned earlier.
* Reflects Swap Overlay agreement.
VRDB means variable rate demand bonds.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Fair Value. As of December 31, 2014, the swaps had a negative fair value of $390.9 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 interest rates are below the Fixed Rate Paid, the City's swaps had negative values. Note that the combination of the negative fair value of $390.9 million less the unamortized interest rate swap premium balance of $6.9 million related to investment derivative instruments and $34.9 million related to governmental cash flow hedges represent the total fair value of the derivative liability in the statement of net position. During 2014, the City terminated the swap associated with Series 2002B General Obligation Variable Rate Demand Bond (Neighborhoods Alive 21 Program); the termination payment amounted to $36.3 million.
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.
Swap payments and associated debt. Bonds maturing and interest payable January 1, 2015 have been excluded because funds for their payment have been provided for. As of December 31, 2014, 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):
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Interest
Variable-Rate Bonds Rate
Year Ending Principal Interest Swaps, Net Total
December 31,
$ 31,965 $ 4,201 $ 62,676 $ 98,842
51,365 4,215 61,330 116,910
53,750 4,017 59,429 117,196
59,865 3,810 57,437 121,112
58,410 3,593 55,167 117,170
2020- 2024 413,660 14,894 236,467 665,021
2025- 2029 300,625 9,418 168,159 478,202
2030-2034 418,560 5,744 100,499 524,803
2035-2039 235,900 1,504 35,232 272,636
2040 - 2042 43,535 20 2,608 46,163
$ 1,667,635 $ 51,416 $ 839,004 $ 2,558,055
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, 2014. The Water Rate Stabilization account had a balance in restricted assets of $88.4 million at December 31, 2014.
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, 2014.
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, 2014. The Sewer Rate Stabilization account had a balance in restricted assets of $32.6 million at December 31, 2014.
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, 2014.
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
79
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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, 2014.
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, 2014.
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, 2014.
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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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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 ofthe 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, 2014, not including principal payments due January 1, 2015, are as follows (dollars in thousands):
Amount
Defeased Outstanding
General Obligation Emergency Telephone System - Series 1993 $ 213,730 $ 103,570
General Obligation Bonds - Series 2001A 406,571 64,805
General Obligation Project Bonds - Series 2004A 323,040 3,405
General Obligation Project and Refunding Bonds - Series 2005B 11,435 1,750
General Obligation Direct Access Bonds - Series 2005E 22,186 5,555
General Obligation Project and Refunding Bonds - Series 2006A 28,695 7,440
General Obligation Project and Refunding Bonds - Series 2007A 10,505 4,350
Lakefront Millennium Project Parking Facilities Bonds - Series 1998 149,880 43,880
Special Transportation Revenue Bonds - Series 2001 118,715 90,395
Total $ 1,284,757 $ 325,150
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
11) Pension Funds
a) Retirement Benefit-Eligible City employees participate in one of four single-employer defined benefit pension plans (Plans). These Plans are: the Municipal Employees'; the Laborers' and Retirement Board Employees'; the Policemen's; and the Firemen's Annuity and Benefit Funds of Chicago. 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 the Municipal Employees' Fund or the Laborers' and Retirement Board Employees' Annuity and Benefit Fund. Each Plan issues a publicly available financial report that includes financial statements and required supplementary information.
The financial statements of the Plans are prepared using the accrual basis of accounting. Employer and employee contributions are recognized in the period in which employee services are performed. Benefits and refunds are recognized when payable.
Plan investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Fixed income securities are valued principally using quoted market prices provided by independent pricing services. For collective investments, the net asset value is determined and certified by the investment managers as of the reporting date. Real estate investments are generally valued by appraisals or other approved methods. Investments that do not have an established market are reported at estimated fair value.
The Plans have a securities lending program. At year-end, the Plans have no credit risk exposure to borrowers because the amounts the Plans owe the borrowers exceed the amounts the borrowers owe the Plans. The contract with the Plans' master custodian requires it to indemnify the Plans if the borrowers fail to return the securities (and if the collateral is inadequate to replace the securities lent) or fail to pay the fund for income distributions by the securities' issuers while the securities are on loan. All securities loans can be terminated on demand by either the Plans or the borrower, although the average term of the loans has not exceeded 154 days. The Plans' custodian lends securities for collateral in the form of cash, irrevocable letters of credit and/or U.S. government obligations equal to at least 102 percent of the fair value of securities or international securities for collateral of 105 percent. Cash collateral is invested in the lending agents' short-term investment pool, which at year-end has a weighted average maturity that did not exceed 39 days. The Plans cannot pledge to sell collateral securities received unless the borrower defaults. Loans outstanding as of December 31, 2014 are as follows: market value of securities loaned $883.6 million, market value of cash collateral from borrowers $906.2 million and market value of non-cash collateral from borrowers $1.5 million.
The Plans provide retirement, disability, and death benefits as established by State law. Benefits generally vest after 20 years of credited service. Employees who retire at or after age 55 (50 for policemen and firemen) with 20 years of credited service qualify to receive a money purchase annuity and those with more than 20 years of credited service qualify to receive a minimum formula annuity. The annuity is computed by multiplying the final average salary by a percentage ranging from 2.0 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.
Historically, State law required City contributions at statutorily, not actuarially, determined rates. 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 (in recent years) 1.25 for the Municipal Employees', 1.00 for the Laborers', 2.00 for the Policemen's, and 2.26 for the Firemen's. State law also requires covered employees to contribute a percentage of their salaries.
Beginning in 2016, current State law requires significantly increased contributions by the City to the Policemen's and Firemen's Plans. This is projected to require an increase in the City's contributions to the Policemen's and Firemen's Plans by more than $548.6 million starting in 2016 and increasing by
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
approximately three percent each year thereafter. A bill was recently passed by the Illinois General Assembly which would, among other things, institute an extension to 2055 of the period by which the unfunded liabilities ofthe Policemen's and Firemen's Plans are amortized to a 90 percent Funded Ratio. This would also phase-in over the next five years the increases in the City's contributions to the Policemen's and Firemen's Plans. A motion to reconsider this vote has been filed in the Illinois Senate and is under consideration.
Also beginning in 2016, State law requires significantly increased contributions by the City to the Municipal Employees' and Laborers' Plans. The multiplier determining the City contribution, based on the total amount of contributions by employees to the respective Plans made in the calendar year two years prior, will increase as follows: for the City contribution to be made in 2016, 1.60 (Laborers') and 1.85 (Municipal Employees'); for the contribution made in 2017, 1.90 (Laborers') and 2.15 (Municipal Employees'); for the contribution made in 2018, 2.20 (Laborers') and 2.45 (Municipal Employees'); for the contribution made in 2019, 2.50 (Laborers') and 2.75 (Municipal Employees'); and for the contribution made in 2020, 2.80 (Laborers') and 3.05 (Municipal Employees'). Beginning in 2021, the City's payment contributions for Laborers' and Municipal Employees' will equal the Normal Cost (based on actuarial calculations) for such year plus the amount, determined on a level percentage of payroll basis, that is sufficient to achieve a Funded Ratio of 90 percent in Laborers' and Municipal Employees' by the end of contribution year 2055. This will require an increase in the City's contributions to the Municipal Employees' and Laborers' Plans of more than $89.1 million starting in 2016 and increasing by approximately three percent each year thereafter.
The City's annual pension cost for the current year and related information for each Plan is as follows (dollars in thousands):
Municipal
Employees' Laborers' Policemen's Firemen's Total
Contribution rates:
City (a) (a) (a) (a) (a) , n/a
Plan members 8.5% 8.5% 9.0% 9.125% n/a
Annual required contribution S 839,038 $ 106,018 $ 491,651 $ 304,265 $ 1,740,972
Interest on net pension obligation 200,461 2,336 209,449 150,726 562,972
Adjustment to annual required
contribution (210,521) (2,453) (147,857) (154,961) (515,792)
Annual pension cost 828,978 105,901 553,243 300,030 1,788,152
Contributions made 149,747 12,160 178,158 107,334 447,399
Increase in net pension obligation 679,231 93,741 375,085 192,696 1,340,753
Net pension obligation,
beginning of year 2,672,812 31,148 2,702,573 1,884,074 7,290,607
Net pension obligation,
end of year S 3,352,043 S 124,889 $ 3,077,658 $ 2,076,770 $ 8,631,360
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Municipal
Employees' Laborers' Policemen's Firemen's
Actuarial valuation date 12/31/2014 12/31/2014 12/31/2014 12/31/2014
Actuarial cost method Entry age normal Entry age normal Entry age normal Entry age normal
Amortization method Level dollar, open Level dollar, open 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:
Investment rate of return (a) 7.5% '7.5% 7.5% 8.0%
Projected salary increases (a):
Inflation 3.0 3.0 3.0 3.0
Seniority/Merit (b) (c) (d) (e)
Postretirement benefit increases (f) (f) (g) (g)
Proceeds from a tax levy not more than the amount equal to the total amount of contributions by the employees to the Fund made in the calendar year, two years prior to the year for which the annual applicable tax is levied multiplied by 1.25 for Municipal, 1.00 for Laborers', 2.00 Policemen's and 2.26 for Firemen's.
Service-based increases equivalent to a level annual rate increase of 1.4 percent over a full career.
Service-based increases equivalent to a level annual rate increase of 1.9 percent over a full career.
Service-based increases equivalent lo a level annual rate increase of 1.8 percent over a full career.
Service-based increases equivalent to a level annual rate increase of 1.8 percent over a full career.
The lesser of 3.0 percent or 1/2 of CPI (simple) per year, applied to the annuity in effect as of December 31, 2014, with a minimum of 1.0 percent per year for total annuities less than S22,000.00 . Beginning at the earlier of:
the later ofthe first of January of the year after retirement and age 61;
the later of the first of January of the year after the fourth anniversary of retirement and age 54.
Uses 3.0 percent per year for annuitants age 55 or over, born before 1955 with at least 20 years of service and 1.5 percent per year for 20 years for annuitants age 60 or over, born in 1955 or later.
For particpants that first became members on or after January 1, 2011, increases are equal to the lesser of 3.0 percent and 50 percent of CPI-U of the original benefit, commencing at age 60.
The following tables of information assist users in assessing each fund's progress in accumulating sufficient assets to pay benefits when due. The three-year historical information for each Plan is as follows (dollars in thousands):
Annual % of Annual Net Pension
Pension Pension Cost (Asset) /
Year Cost Contributed Obligation
Municipal Employees':
2012 $ 687,519 21.65% $ 2,008,546
812,463 18.24 2,672,812
828,978 18.06 3,352,043
Laborers':
2012 77,857 15.22 (63,707)
106,439 10.88 31,148
105,901 11.48 124,889
Policemen's:
483,359 40.94 2,350,739
531,355 33.79 2,702,573
553,243 32.20 3,077,658
Firemen's:
268,112 30.41 1,696,679
291,064 35.62 1,884,074
300,030 35.77 2,076,770
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
SCHEDULE OF FUNDING PROGRESS
(dollars in thousands)
Actuarial Accrued Actuarial Liability
Actuarial Value of (AAL) Unfunded Funded
Valuation Assets Entry Age AAL Ratio
Year Date (a) (b) (bj-aj (a/b)
Municipal Employees':
2012 12/31/12 $ 5,073,320 $ 13,475,377 $ 8,402,057
12/31/13 5,114,208 13,828,920 8,714,712
12/31/14 5,039,297 12,307,094 7,267,797
Laborers':
12/31/12 1,315,914 2,336,189 1,020,275 56
12/31/13 1,354,261 2,383,499 1,029,238 57
12/31/14 1,357,451 2,107,110 749,659 64
Policemen's:
12/31/12 3,148,930 10,051,827 6,902,897 31
12/31/13 3,053,882 10,282,339 7,228,457 30
12/31/14 2,954,319 11,334,799 8,380,480 26
Firemen's:
12/31/12 993,284 4,020,138 3,026,854 25
12/31/13 991,213 4,128,735 3,137,522 24
12/31/14 988,141 4,338,593 3,350,452 23
Covered Payroll
(O
1,590,794 1,580,289 1,602,978
198,790 200,352 202,673
1,015,171 1,015,426 1,074,333
418,965 416,492 460,190
Unfunded (Surplus) AAL as a Percentage of Covered Payroll t(*>-a)/c)
528 %
551
453
513 514 370
680 712 780
722 753 728
The unfunded liability to the Plans poses significant financial challenges. The unfunded liability has consistently increased in recent years, but is expected to decrease in the future. Such a decrease is expected to result from significantly increased City contributions to the Plans, beginning in 2016, as required by State law (see Note 1). These increased contributions to the Plans are expected to pose a substantial burden on the City's financial condition.
b) Other Post Employment Benefits (OPEB) - The Pension Funds also contribute a portion of the City's contribution as 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 Note 12). The plan is financed on a pay as you go basis (dollars in thousands).
85
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Annual OPEB Cost and Contributions Made For Fiscal Year Ended December 31, 2014
Municipal
Employees' Laborers' Policemen's Firemen's
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 Interest on Net OPEB Obligation Adjustment to Annual -Required Contribution
Annual OPEB Cost (Gain) Contributions Made
9,826 $ 3,404
(26,330)
(13,100) 9,051
2,520 290
(2,243)
567 2,360
9,723 547
(4,079)
6,191 9,657
2,739 $ 24,808 536 4,777
(4,143)
(868) 2,471
(36,795)
(7,210) 23,539
Decrease in
Net OPEB Obligation
Net OPEB Obligation, Beginning of Year
8,684 $ 8,563 $ 75,382
Actuarial Method and Assumptions - For-the Pension Funds' subsidies, the actuarial valuation for the fiscal year ended December 31, 2014 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, 2014
Actuarial Valuation Date Actuarial Cost Method
Amortization Method
Remaining Amortization Method
Asset Valuation Method
Actuarial assumptions: OPEB Investment Rate of Return (a)
Projected Salary Increases (a) Inflation
Seniority / Merit
Healthcare Cost Trend Rate (e)
Municipal Employees'
12/31/2014
Entry Age Normal
Level Dollar, Open
2 years Closed
No Assets (Pay-as-you-go)
4.5% 3.0%
(b) 0.0%
Laborers'
Firemen's
12/31/2014
Entry Age Normal
Level Dollar, Open
Policemen's
12/31/2014
Entry Age Normal
Level Percent, Open
No Assets
2 years Closed 2 years Closed
No Assets No Assets No Assets
4.5% 3.0%
(c) 0.0%
4.5% 3.0%
(d.) 0.0%
(Pay-as-you-go) (Pay-as-you-go) (Pay-as-you-go)
4.5% 3.0%
(d) 0.0%
( a ) Compounded Annually
( b ) Service-based increases equivalent to a level annual ( c ) Service-based increases equivalent to a level annual ( d ) Service-based increases equivalent to a level annual ( e ) Trend not applicable - fixed dollar subsidy
rate of increase of 1.4 percent over a full career rate of increase of 1.9 percent over a full career rate of increase of 1.8 percent over a full career
OPEB COST SUMMARY
(dollars in thousands)
Annual % of Annual Net
OPEB OPEB OPEB
Year Cost Obligation Obligation
2012 $ 13,703
13,389
(13,100) *
2,994
3,009
2014 567
10,573
10,536
6,191
4,154
4,071
(868)
69.49 % $ 71,756 71.01 75,637 53,486
85.56 5,951 83.67 6,442 416.04 4,649
92.37 11,461 93.46 12,150 155.99 8,684
63.13 10,382 62.66 11,902 8,563
* The negative cost is primarily due to the insurance subsidy ending in 2016.
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,
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
supplementary information following the notes to the financial statements (dollars in thousands, unaudited).
Unfunded
Actuarial (Surplus)
Accrued AAL as a
Actuarial Liability Unfunded Percentage
Actuarial Value of (AAL) (Surplus) Funded Covered of Covered
Valuation Assets Entry Age UAAL Ratio Payroll Payroll
Date [aj f^bj ( b-a ) ( a/b ) [cj (( b-a ) / c )
Municipal
Employees' 12/31/2014 $ - $ 17,495 $ 17,495 - $ 1,602,978 1.09
Laborers' 12/31/2014 - 4,593 4,593 - 202,673 2.27
Policemen's 12/31/2014 - 18,762 18,762 - 1,074,333 1.75
Firemen's 12/31/2014 - 4,995 4,995 - 460,190 1.09
12) 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 $84.8 million in 2014 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% 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 2014, the net expense to the City for providing these benefits to approximately 24,381 annuitants plus their dependents was approximately $79.3 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, 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 and 50 percent of 2013 subsidy levels in 2015. Additional step downs in subsidy levels for 2016 have not yet been finalized.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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 (see Note 11).
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. The renegotiated agreements also provided that retirees will contribute 2% of their pension toward the cost of their health care coverage.
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 of the employer (ARC). The ARC (Annual Required Contribution) 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 2014 is the Annual OPEB Cost (expense).
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Annual OPEB Cost and Contributions Made
(dollars in thousands)
Contribution Rates: City
Plan Members
Annual Required Contribution Interest on Net OPEB Obligation Adjustment to Annual Required Contribution
Annual OPEB Cost Contributions Made
Decrease in Net OPEB Obligation
Net OPEB Obligation, Beginning of Year
Net OPEB Obligation, End of Year
Retiree Settlement Health Plan
Total
N/A
60,912 3,989 (15,135)
N/A
128,625 5,795 (21,988)
Pay As You Go Pay As You Go Pay As You Go
N/A
62,666 93,962
49,766 34,099
67,713 1,806 (6,853)
(31,296)
15,667
112,432 128,061
60,210
193,191
(15,629)
132,981
28,914 $ 148,648 $ 177,562
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2014 are as follows (dollars in thousands):
Schedule of Contributions, OPEB Costs and Net Obligations
Fiscal Year Ended
Annual Percentage of Annual Net OPEB OPEB Cost OPEB Cost Contributed Obligation
Settlement Plan
12/31/2014 12/31/2013 12/31/2012
CBA Special Benefits
62,666 75,444 37,444
149.9%
148.4
260.5
28,914 60,210 96,760
12/31/2014 12/31/2013 12/31/2012
12/31/2014 12/31/2013 12/31/2012
49,766 41,722 39,533
112,432 117,166 76,977
68.5%
65.5
46.6
113.9%
118.9
150.6
148,648 132,981 118,601
177,562 193,191 215,361
Funded Status and Funding Progress - As of January 1, 2014, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $964.6 million all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was approximately $2,425.0 million and the ratio of the unfunded actuarial accrued liability to the covered payroll was 39.8 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
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, supplementary information following the notes to the financial statements (dollars in thousands, unaudited).
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
12/31/2013 $ - $ 498,205 $ 498,205 0% $2,425,000 20.5 %
CBA Special Benefits
12/31/2013 $ - $ 466,421 $ 466,421 0% $ 1,400,269 33.3 %
Total
12/31/2013 $ - $ 964,626 $ 964,626 0% $2,425,000 39.8 %
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% initially, reduced by decrements to an ultimate rate of 5.0% in 2026. The range of rates included a 3.0% inflation assumption. Rates included a 2.5% 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%. 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% in 2014, reduced by decrements to an ultimate rate of 5.0% in 2026. Rates included a 2.5% 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%. 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, 2014
Actuarial Valuation Date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Healthcare Inflation Rate
December 31, 2013 Entry Age Normal Level Dollar, open 10 years Market Value
3.0% 2.5%
8.0% initial to 5.0% in 2026
December 31, 2013 Entry Age Normal Level Dollar, open 10 years Market Value
3.0% 2.5%
8.0% initial to 5.0% in 2026
13) 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, 2014, the total amount of non-Enterprise Fund claims was $483.2 million and Enterprise Fund was $57.1 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):
2014 2013
Balance, January 1 $ 547,674 $608,485
Claims incurred and
change in estimates 627,488 699,582
Claims paid on current and
prior year events (634,890) (760,393)
Balance, December 31 $ 540,272 $547,674
14) 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 allocated in one or more of the previous three categories, are considered "Unassigned' until such allocation is completed.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
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 $ 24,498
Restricted Purpose:
TIF and Special Service Area Programs and
Redevelopment
Capital Projects
Grants
Debt Service
General Government
Committed Purpose:
Debt Service
Budget and Credit Rating Stabilization
Repair, Maintenance and City Services .. Assigned Purpose:
Future obligations
Special Projects 65,223
Unassigned 51,557
Total Government Fund Balance $ 141,278
Federal, State and Local Grants
Community
347,652
139,491
Service Bond, Note Development Other
Special Concession Redemption Improvement Governmental
Taxing Areas and Reserve and Interest Projects Funds
15,230
1,327,058
75,176
(240,275)
620,891
(1,576,293) (26,872)
$ (225,045) $ 1,327,058 $ (955,402) S (26,872) $ 347,652 $ 214,667
At the end of the fiscal year, total encumbrances for the General Operating Fund amounted to $29.2 million, $47.3 million for the Special Taxing Areas Fund, $75.5 million for the Capital Projects Fund and $7.3 million for the Non Major Special Revenue Fund.
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, 2014, the Enterprise Funds have entered into contracts for approximately $518.1 million for construction projects.
The City's pollution remediation obligation of $8.5 million is primarily related to Brownfield redevelopment projects.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
These projects include removal of underground storage tanks, cleanup of contaminated soil, and 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.
Subsequent Events Ratings
In February 2015, Moody's Investors Service (Moody's) downgraded the ratings of the City's General Obligation bonds, Sales Tax revenue bonds and Motor Fuel Tax revenue bonds from Baal to Baa2, the City's Wastewater senior lien revenue bonds from A2 to A3, and the Wastewater second lien revenue bonds from A3 to Baal, each with a negative outlook.
In March 2015, Kroll Bond Rating Agency (Kroll) rated the City's General Obligation bonds A- with a stable outlook.
In May 2015 Moody's downgraded the City's General Obligation bonds, Sales Tax revenue bonds and Motor Fuel Tax revenue bonds from Baa2 to Ba1, with a negative outlook. At the same time, Moody's downgraded the City's Water senior lien revenue bonds from A2 to Baal, the Water second lien revenue bonds from A3 to Baa2 and the City's Wastewater senior lien bonds from A3 to Baa2 and the Wastewater second lien revenue bonds from Baal to Baa3, each with a negative outlook. The Moody's May 2015 downgrades triggered (with respect to the City's General Obligation debt, Sales Tax revenue bonds, Water second lien revenue bonds and Wastewater second lien revenue bonds) defaults under certain credit and/or liquidity facilities, certain general obligation revolving credit agreements and, for the Series 2008C Wastewater second lien revenue bonds, certain continuing covenant agreements with those bondholders. The Moody's May 2015 downgrades also triggered termination events under interest rate swap
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
agreements to which the City is a party. The City does not have any such facilities or agreements relating to its Motor Fuel Tax revenue bonds. In response to the triggering of these defaults and termination events, the City took several actions: (i) it terminated the Wells Fargo letter of credit securing two series of its General Obligation commercial paper notes (no such notes were outstanding at the time of termination) and terminated the associated reimbursement agreement; (ii) it entered into forbearance agreements with (A) the providers of credit and/or liquidity facilities for its General Obligation bonds, General Obligation commercial paper notes and Sales Tax revenue bonds, (B) the lenders on its General Obligation revolving credit agreements, (C) the counterparties on its General Obligation and Sales Tax Revenue interest rate swap agreements, and (D) the holders of its Series 2008C Wastewater second lien revenue bonds; (iii) it amended and/or transferred the interest rate swap agreements for its Water second lien revenue bonds and its Wastewater second lien revenue bonds to remove such termination event from the swap agreements prior to any demand being made for a termination payment by the counterparties; and (iv) it obtained a waiver of the event of default from the provider of a letter of credit relating to its Water second lien revenue bonds.
In May 2015, subsequent to the Moody's downgrades, Standard and Poor's (S&P) downgraded the City's General Obligation bonds from A+ to A- with a negative watch. S&P also downgraded the City's Water senior lien revenue bonds from AA to A, the Water second lien revenue bonds from AA- to A- the City's Wastewater senior lien bonds from AA to A and the Wastewater second lien revenue bonds from AA- to A-, each with a negative watch.
In May 2015, subsequent to the Moody's downgrades, Fitch Ratings (Fitch) downgraded the City's General Obligation bonds and Sales Tax revenue bonds from A- to BBB+, with a negative watch.
In June 2015, Kroll rated the Sales Tax revenue bonds AA+ with a stable outlook.
Bonds
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.
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CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
Swaps
In May and June 2015, the City terminated all of its General Obligation and Sales Tax revenue swaps and transferred and modified certain thresholds with respect to Additional Termination Events for its Water second lien revenue swaps and Wastewater second lien revenue swaps.
The City terminated the swaps relating to its (1) General Obligation Bonds, Project and Refunding Series 2003B for total termination payments of $31.0 million, (2) General Obligation Bonds, Project and Refunding Series 2005D for total termination payments of $62.8 million, (3) General Obligation Bonds, Refunding Series 2007 E, F and G for total termination payments of $62.0 million and 4) Sales Tax Revenue Refunding Bonds, Series 2002 for a termination payment of $29.0 million.
The City transferred the swaps with UBS related to its Water Second Lien Revenue Bonds, Series 2000 ($100.0 million notional amount) and Series 2004 ($173.3 million notional amount) to Barclays. At the same time, the ATE rating threshold was reduced from below Baal by Moody's or BBB+ by S&P to below Baa3 or BBB- by Moody's and S&P respectively. In addition, the swap with Royal Bank of Canada relating to the City's Water Second Lien Revenue Bonds, Series 2004 ($182.2 million notional amount) was modified to reduce the ATE rating threshold from below Baal by Moody's or BBB+ by S&P to below BBB+ by S&P or Fitch.
The City modified the ATE rating thresholds related to its Second Lien Wastewater Transmission Revenue Bonds, Series 2008C swaps with JPMorgan ($49.8 million notional amount) and Bank of America ($49.8 million notional amount) from below Baal by Moody's or BBB+ by S&P to below Baa3 or BBB- by Moody's or S&P, respectively.
Commercial Paper, Letters of Credit, Lines of Credit and Continuing Covenant Agreements
As of December 31, 2014, the outstanding balance for the City's General Obligation Commercial Paper Notes and General Obligation Lines of Credit (G.O. CP) was $297.4 million. Since January 2015, the City has paid down $54.2 million of G.O. CP and has issued $591.8 million to refund certain outstanding bonds, facilitate the conversion of variable rate bonds to fixed rate, fund swap termination payments and pay certain settlements and judgments. The current G.O. CP outstanding is approximately $835.0 million.
In February 2015, the City's Midway Commercial Paper program was reduced from $150 million to $85 million. As such, the PNC letter of credit was not extended.
In April 2015, the City issued $30.5 million aggregate principal amount of its Chicago O'Hare International Airport Commercial Paper Notes (O'Hare CP Notes). The proceeds of these O'Hare CP Notes were used to finance a portion of the cost of authorized airport projects.
In May and June 2015, the City converted its General Obligation bonds and Sales Tax revenue bonds from variable rate to fixed rate, as discussed above. The related letters of credit and liquidity facilities were terminated at the time of the conversion.
Due to the May 2015 downgrades by Moody's, the City entered into forbearance agreements with its General Obligation commercial paper credit providers (except Wells Fargo), the lenders on its General Obligation revolving credit agreements and the Orange Line letter of credit provider. The forbearance agreements extend to September 30, 2015, unless another event of default is triggered, including another rating downgrade by Moody's or a downgrade below investment grade by S&P or Fitch. The Wells Fargo letter of credit was terminated; there were no such General Obligation commercial paper notes outstanding secured by that letter of credit. The City also entered into forbearance agreements with the holders of its Series 2008C Wastewater second lien revenue bonds. Each of those holders has a continuing covenant agreement with the City with respect to its bonds. An event of default was triggered under each continuing covenant agreement due to the May 2015 downgrades by Moody's. The forbearance agreements extend to June 30, 2016 (provided that the City has taken certain steps prior to June 30, 2016 to convert the Series 2008C Wastewater second lien revenue bonds to fixed rates of interest), unless another event of default is triggered, including another rating downgrade by Moody's or a downgrade below investment grade by S&P or Fitch.
In May 2015, the City entered into a Line of Credit Agreement with DNT Asset Trust, which allows the City to draw on the line of credit in an aggregate amount not to exceed $200.0 million to facilitate the conversions of the City's
96
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2014
General Obligation variable rate bonds to fixed rate, by funding a portion of the purchase price of tendered bonds as well as paying for the redemption of bonds which were not converted to fixed rate. The line of credit was subsequently reduced to $151.6 million, to reflect the amount of the draws related to the conversions. The City's repayment obligation under the line of credit is a general obligation of the City. The line of credit expires September 30, 2015. In June 2015, the City amended its Revolving Credit Agreement with Bank of America, which increases the line of credit amount to $348.4 million. The City's repayment obligation under the line of credit is a general obligation of the City. The line of credit remains in effect through the forbearance period ending on September 30, 2015, although any draws on the line of credit during and after the forbearance period are subject to approval by the bank in its sole discretion.
97
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS FUNDING PROGRESS Last Three Years (dollars are in thousands)
Actuarial Valuation Date
Actuarial
Value of Assets (a)
Actuarial Accrued Liability (AAL) Entry Age
(Ai
Unfunded Actuarial Accrued Liability (UAAL) (b-a)
Funded Ratio (a/b)
Covered Payroll
Unfunded (Surplus) AAL as a Percentage of Covered
Payroll (( b-a) /c)
Municipal Employees'
12/31/2012 $
12/31/2013
12/31/2014
162,083 27,573 17,495
162,083 27,573 17,495
$ 1,590,794 1,580,289 1,602,978
%
10.19 1.74 1.09
Laborers'
12/31/2012
12/31/2013
2014 12/31/2014
Policemen's
12/31/2012
12/31/2013
12/31/2014
Firemen's
12/31/2012
12/31/2013
12/31/2014
City of Chicago
12/31/2011
12/31/2012
12/31/2013
38,654 7,074 4,593
168,811 28,376 18,762
46,206 7,692 4,995
470,952 997,281 964,626
38,654 7,074 4,593
168,811 28,376 18,762
46,206 7,692 4,995
470,952 997,281 964,626
198,790 200,352 202,673
1,015,171 1,015,426 1,074,333
418,965 416,492 460,190
2,518,735 2,385,198 2,425,000
19.44 % 3.53 2.27
16.63 % 2.79 1.75
11.03 % 1.85 1.09
18.70 %
41.81
39.78
98
I
COMBINING AND INDIVIDUAL FUND STATEMENTS GENERAL FUND
99
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Schedule A-1
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
LOCAL TAX REVENUE UTILITY TAX:
Gas $ 119,084
Electric 97,412
Telecommunication 116,598
Commonwealth Edison 89,519
Cable Television 27,661
Total Utility Tax 450,274
SALES TAX:
Home Rule Retailers' Occupation 274,505
TRANSPORTATION TAX:
Parking 126,571
Vehicle Fuel 48,061
Ground Transportation 9,100
Total Transportation Tax 183,732
TRANSACTION TAX:
Real Property 139,492
Personal Property Lease 138,873
Motor Vehicle Lessor 6,262
Total Transaction Tax 284,627
RECREATION TAX:
Amusement 103,146
Automatic Amusement 625
Liquor 32,237
Boat Mooring 1,341
Cigarette 22,923
Off Track Betting 595
Soft Drink 21,698
Total Recreation Tax 182,565
BUSINESS TAX:
Hotel 97,745
Foreign Fire Insurance 4,725
Total Business Tax 102,470
TOTAL LOCAL TAX REVENUE 1,478,173
119,084 97,412
116,598 89,519 27,661
450,274
274,505
126,571 48,061 9,100
183,732
139,492 138,873 6,262
284,627
103,146 625 32,237 1,341 22,923 595 21,698
182,565
97,745 4,725
102,470
1,478,173
$ 153,274 $ 96,353 106,129 90,202 27,538
473,496
285,773
126,516 48,161 10,399
185,076
157,194 152,576 6,431
316,201
112,895 584 32,113 1,309 24,022 547 22,210
193,680
100,407 4,422
104,829
1,559,055
34,190 (1,059) (10,469) 683 (123)
23,222
11,268
(55) 100 1,299
1,344
17,702 13,703 169
31,574
9,749 (41) (124) (32)
1,099 (48) 512
11,115
2,662 (303)
2,359
80,882
100
Schedule A-1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
INTERGOVERNMENTAL REVENUE
STATE INCOME TAX:
Income $ 262,700
Personal Property Replacement 31,000
Total State Income Tax 293,700
STATE SALES TAX:
State Retailers' Occupation 322,272
STATE AUTO RENTAL TAX:
Municipal Auto Rental 4,100
FEDERAL/STATE GRANTS:
Grants 1,500
TOTAL INTERGOVERNMENTAL REVENUE 621,572
LOCAL NON-TAX REVENUE
INTERNAL SERVICE:
Water Fund 77,371
Chicago-O'Hare International Airport Fund 42,889
Vehicle Tax Fund 20,411
Chicago Midway International Airport Fund 9,953
Federal Funds 22,214
Sewer Fund 34,860
Emergency Communication Fund 67,006
Federal Funds - Pensions 15,822
Intergovernmental Vouchers (IV) 784
Department of Housing & Economic Development. 786
Transportation 4,481
Department of Fleet and Facility Management 8,331
Miscellaneous - Planning, Purchasing, etc 3,044
Public Safety - Police, Fire and OEMC 7,054
Other 3,206
Total Internal Service 318,212
LICENSES AND PERMITS:
Alcoholic Liquor Dealers' License 11,617
Building License 21,630
Building Permits 41,689
Fines and Penalties 6,360
Other 50,372
Total Licenses and Permits 131,668
262,700 31,000
293,700
322,272
4,100
1,500
621,572
77,371 42,889 20,411 9,953 22,214 34,860 67,006 15,822 784 786 4,481 8,331 3,044 7,054 3,206
318,212
11,617 21,630 41,689 6,360 50,372
131,668
$ 250,279 $ 27,752
278,031
334,526
4,175
2,335
619,067
77,371 39,976 20,411 10,901 19,409 34,860 67,005 15,248 83
4,705 6,204 4,444 2,587 2,512
305,716
11,592 18,142 39,311 6,006 44,889
119,940
(12,421) (3,248)
(15,669)
12,254
75
835
(2,505)
(2,913)
948 (2,805)
(1) (574) (701) (786) 224 (2,127) 1,400 (4,467) (694)
(12,496)
(25) (3,488) (2,378) (354) (5,483)
(11,728)
101
Schedule A-1 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2014 . (Amounts are in Thousands of Dollars)
Variance
Original Final Actual Positive
Budget Budget Amounts (Negative)
LOCAL NON-TAX REVENUE - Concluded FINES:
Fines, Forfeitures and Penalties $ 414,680 $ 414,680 $ 338,329 $ (76,351)
INVESTMENT INCOME:
Interest on Investments 4,725 4,725 1,573 (3,152)
CHARGES FOR SERVICES:
Inspection 9,873 9,873 14,399 4,526
Information 924 924 664 (260)
Safety 80,300 80,300 90,001 9,701
Reimbursement of Current Expense 8,734 8,734 5,781 (2,953)
Other 24,645 24,645 23,748 (897)
Total Charges for Services 124,476 124,476 134,593 10,117
MUNICIPAL UTILITIES:
Parking 6,656 6,656 7,257 601
Total Municipal Utilities 6,656 6,656 7,257 601
LEASES, RENTALS AND SALES:
Sale of Land and Buildings 3,500 3,500 2,942 (558)
Vacation of Streets and Alleys 1,000 1,000 5,636 4,636
Sale of Impounded Autos 60 60 38 (22)
Sale of Materials 2,200 2,200 1,972 (228)
Rentals and Leases 15,358 15,358 13,539 (1,819)
Total Leases, Rentals and Sales 22,118 22,118 24,127 2,009
MISCELLANEOUS:
Property Damage |999|202 195
Other 55,913 55,913 66,291 10,378
Total Miscellaneous 55,920 55,920 66,493 10,573
TOTAL LOCAL NON-TAX REVENUE 1,078,455 1,078,455 998,028 (80,427)
Issuance of Debt, Net of Original
Discount - - - -
Budgeted Prior Years' Surplus
and Reappropriations 53,417 53,417 45,472 (7,945)
Transfers In 58,608 58,608 39,700 (18,908)
Total Revenues $ 3,290,225 $ 3,290,225 $ 3,261,322 $ (28,903)
102
NONMAJOR GOVERNMENTAL FUNDS
103
Schedule B-1
CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2014
(Amounts are in Thousands of Dollars)
Total Debt Total
Nonmajor Service Nonmajor Total
Special Fund Capital Nonmajor
Revenue Special Project Governmental
Funds Taxing Areas Funds Funds
ASSETS
Cash and Cash Equivalents $ 8,768 $ 6,373 $ 412 $ 15,553
Investments 88,871 4,531 97,045 190,447
Cash and Investments with Escrow Agent 257 72,295 - 72,552
Receivables (Net of Allowances):
Property Tax 340,506 30,401 - 370,907
Accounts 16,234 33 341 16,608
Due from Other Funds 71,602 - 7,608 79,210
Due from Other Governments 20,284 - 18,179 38,463
Total Assets $ 546,522 $ 113,633 $ 123,585 $ 783,740
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 44,053 $ - $ 20,824 $ 64,877
Bonds, Notes and Other Obligations Payable - Current ... - 4,400 - 4,400
Accrued Interest - 1,464 - 1,464
Due to Other Funds 74,434 - 20,264 94,698
Accrued and Other Liabilities 42,316 391 24,941 67,648
Line of Credit and Commercial Paper 18,500 2,923 - 21,423
Total Liabilities 179,303 9,178 66,029 254,510
Deferred Inflows 288,986 25,577 - 314,563
Fund Balance:
Restricted 3,057 78,878 57,556 139,491
Committed 75,176 - - 75,176
Total Fund Balance 78,233 78,878 57,556 214,667
Total Liabilities, Deferred Inflows and Fund Balance $ 546,522 $ 113,633 $ 123,585 $ 783,740
104
Schedule B-2
CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Total Nonmajor Special Revenue
Funds
Debt Service
Fund Special Taxing Areas
Total Nonmajor Capital Project Funds
Total Nonmajor Governmental Funds
REVENUES
Property Tax $ 357,457
Utility Tax 74,641
Sales Tax
Transportation Tax 208,996
State Income Tax 126,019
Transaction Tax 63,055
Special Area Tax
Other Taxes 21,245
Federal/State Grants
Internal Service 30,046
Fines 15,188
Investment Income (658)
Charges for Services 31,073
Miscellaneous 19,731
Total Revenues 946,793
306,081 502 6,785 73,584 93,298 81,238 483,493 915
EXPENDITURES Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Cultural and Recreational
Employee Pensions
Other
Capital Outlay
3,575 757
Debt Service:
Principal Retirement
1,050,228
Interest and Other Fiscal Charges
Total Expenditures
Revenues Over (Under) Expenditures (103,435)
$ 90,686 $
54 920
91,660
69,912 30,963
100,875
(9,215)
710 2,645
3,355
67,854
67,854
(64,499)
448,143 74,641
208,996 126,019 63,055
21,245
30,046 15,188 106 31,073 23,296
1,041,808
306,081 502 6,785 73,584 93,298 81,238 483,493 915 67,854
73,487 31,720
1,218,957
(177,149)
Continued on following page.
I
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, 2014 (Amounts are in Thousands of Dollars)
Total Nonmajor Special Revenue
Funds
Debt Service
Fund Special Taxing Areas
Total Nonmajor Capital Project Funds
Total Nonmajor Governmental Funds
OTHER FINANCING SOURCES (USES)
Issuance of Debt $
Payment to Refunded Bond Escrow Agent
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance - Beginning of Year
Fund Balance - End of Year $
32,741 2,262 45,215 (104,604) (24,386)
123,468 2,262 137,171 (140,865) 122,036
$ 90,127
75,620
(33,601) 112,479
6,303 51,253
10,436 (29,761) 70,802
(55,113) 269,780
78,233 $ 78,878 $ 57,556 $ 214,667
106
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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.
107
Schedule C-1
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2014
(Amounts are in Thousands of Dollars)
Motor Fuel Tax
Vehicle and
Tax Project Pension
ASSETS
Cash and Cash Equivalents $ 492 $ 1,509 . $
Investments 11,366 23,161 75
Cash and Investments with Escrow Agent - 257
Receivables (Net of Allowances):
Property Tax - - 340,506
Accounts 2,756 1,566 191
Due from Other Funds 49,305 254
Due from Other Governments - 10,599
Total Assets $ 63,919 $ 37,346 $ 340,772
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 6,707 $ 17,601 $ 181
Due to Other Funds 235 - 51,520
Accrued and Other Liabilities 28,678 386 85
Line of Credit and Commercial Paper - - -
Total Liabilities 35,620 17,987 51,786
Deferred Inflows - - 288,986
Fund Balance (Deficit):
Restricted
Committed 28,299 19,359
Total Fund Balance (Deficit) 28,299 19,359
Total Liabilities and Fund Balance $ 63,919 $ 37,346 $ 340,772
108
Public Building Commission
Chicago Public Library
Special Events, Tourism
and Festivals
Health
and Welfare
Total Nonmajor Special Revenue
Funds
70 $ 4,794 $ 118 $ 1,137 $ 648 $ 8,768
46,399 - 3,982 3,888 88,871
257
340,506
10,364 143 976 238 16,234|109|20,247 1,794 - 71,602
4,179 - - 5,506 - 20,284
4,249 $ 61,559 $ 20,508 $ 13,395 $ 4,774 $ 546,522
12,830 19,869 37 18,500 51,236
3,327 8,800 12,127
3,407 2,810 230
6,447
44,053 74,434 42,316 18,500 179,303
288,986
4,149 4,149
3,057 7,266
10,323
3,057 75,176
78,233
$ 20,508 $ 13,395
109
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, 2014 (Amounts are in Thousands of Dollars)
Motor
Fuel Tax
Vehicle and
Tax Project Pension
Revenues:
Property Tax $ - $ - $ 357,457
Utility Tax - -
Transportation Tax 129,572 77,894
State Income Tax - - 126,019
Transaction Tax ...
Other Taxes
Internal Service 29,660 386
Fines 13,409
Investment Income (118) (517) 17
Charges for Services 16,463
Miscellaneous 43
Total Revenues 189,029 77,763 483,493
Expenditures: Current:
General Government 72,705 27,330
Health :
Public Safety 213
Streets and Sanitation 37,572 36,012
Transportation 72,391 20,833
Cultural and Recreational ...
Employee Pensions - - 483,493
Other
Debt Service:
Principal Retirement ...
Interest and Other Fiscal Charges - 450
Total Expenditures 182,881 84,625 483,493
Revenues Over (Under) Expenditures 6,148 (6,862)
Other Financing Sources (Uses):
Issuance of Debt - 600
Transfers In
Transfers Out
Total Other Financing Sources (Uses) - 600
Net Change in Fund Balances 6,148 (6,262)
Fund Balance (Deficit) - Beginning of Year 22,151 25,621
Fund Balance (Deficit) - End of Year $ 28,299 $ 19,359 $
110
Public Building Commission
Chicago , Public Library
Special Events, Tourism
and Festivals
Health
and Welfare
Total Nonmajor Special Revenue
Funds
5,000 5,000
74,641 63,055
175 2,397 7,862 148,130
1,779 (4) 125 165
2,065
1,530
21,245
(232) 12,088 6,661 41,292
357,457 74,641
208,996
126,019 63,055 21,245 30,046 15,188 (658) 31,073 19,731
946,793
158,035 502 6,387
72
164,996
(16,866)
32,446
51,642
307
84,395 (82,330)
9,193 185 2
29,596 915 3,575
43,466 (2,174)
306,081 502 6,785 73,584 93,298 81,238 483,493 915
3,575 757 1,050,228
(103,435)
(878) 5,027
4,149
(16,866) 27,189
10,323
81,520
81,520
(810) 9,191
8,381
(2,174) 9,122
6,948
(6,500) (6,500)
(6,973) 7,747
774
600 81,520 (6,500) 75,620
(27,815) 106,048
78,233
111
Schedule C-3
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS
COMBINING SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Transaction and Property Tax
FUND
Original and Final Budgeted Revenues:
Vehicle Tax $
Motor Fuel Tax and Project
Pension 342,845
Miscellaneous 55,797
Chicago Public Library
Special Events, Tourism and Festivals
Health and Welfare
Special Taxing Areas -
Total Original and Final Budgeted Revenues .. 398,642
Actual Revenues:
Vehicle Tax
Motor Fuel Tax and Project
Pension 340,829
Miscellaneous 63,055
Chicago Public Library
Special Events, Tourism and Festivals
Health and Welfare
Special Taxing Areas 296,862
Total Actual Revenues 700,746
Variance Positive (Negative) $ 302,104
Transportation Tax
State Taxes
Special Area and Utility Taxes
$ 121,800 $ 39,905
126,053
1,589
67,105
67,105
22,000
163,294 148,053
129,572 77,894
74,641
1,530
126,019
74,641
21,245
208,996 147,264
$ 7,536 $ 45,702 $ (789)
Note: Original and Final Budgets are the same for all funds except Motor Fuel Tax and Project. There was a $9.2 million increase in Miscellaneous revenues in Motor Fuel Tax and Project.
112
Internal Service
Investment Income
Leases, Rentals, Sales and Charges for Services
Miscellaneous
Proceeds of Debt
Budgeted Prior Years' Surplus and
Operating Transfers In/ Other
Total Nonmajor Special Revenue
Funds
6,000
25 2
$ 13,234 $
350 10,600
9,222
12,954 950 6,500
8,514
6,142 13,941
22,329 8,450 5,802 572
178,765 69,068 468,898 158,185 87,461 46,493 572 8,514
1,017,956
29,660 13,409 (118) 16,463 43 - - 189,029
386 - (517) - - 600 - 78,363
17 - - - - 466,865
175 1,348 5,302 - - 144,521
1,779 (4) 125 165 - 81,520 83,585
(232) 10,240 6,661 - - 39,444
21 - - - 21
- - 4,822 155 1,999 - 97,513 401,351
30,046 15,188 4,164 28,331 14,170 600 179,033 1,403,179
$ 2,957 $ 2,688 $ (1,863) $ 4,147 $ (23,970) $ (75,086) $ 121,797 $ 385,223
113
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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, 2014 (Amounts are in Thousands of Dollars)
Streets
General Public and
Government Health Safety Sanitation
FUND
Original and Final Budget:
Vehicle Tax $ 73,515 $ - $ 546 $ 38,712
Motor Fuel Tax and Project 25,658 - - 16,995
Pension 468,898
Miscellaneous 149,778 - 8,408
Chicago Public Library 36,143
Special Events, Tourism and Festivals 14,739 - 185
Health and Welfare 572 - -
Special Taxing Area 8,139 -_ 375 -
Total Original and Final Budget 777,442 - 9,514 55,707
Actual Expenditures and Encumbrances:
Vehicle Tax
Motor Fuel Tax and Project
Pension
Miscellaneous
Chicago Public Library
Special Events, Tourism and Festivals
Total Actual Expenditures and Encumbrances ...
73,012 - 209 . 36,945
24,660 - - 25,385
483,494
154,799 - 5,164
33,160
13,681 -_ 185 -_
782,806 - 5,558 62,330
Variance Positive (Negative) $ (5,364) $ - $ 3,956 $ (6,623)
Note: Original and Final Budgets are the same for all funds except Motor Fuel Tax and Project. There was a $9.2 million increase in transportation expenditures in Motor Fuel Tax and Project.
114
Trans-portation
Cultural and Recreational
Employee Pensions
Operating Transfers Out
Interest and Other
Fiscal Charges
Total Nonmajor Special Revenue
Funds
$ 65,992 26,415
51,318 31,569
178,765 69,068 468,898 158,186 87,461 46,493 572 8,514
1,017,957
70,974 23,897
50,434 29,617
181,140 73,942 483,494 159,963 83,594 43,483
1,025,616
$ (2,464) $ 2,836 $ - $ -_ $ -_ $ (7,659)
115
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.)
116
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Schedule D-1
CITY OF CHICAGO, ILLINOIS NONMAJOR CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2014
(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 $ 14 $ 26 $ 372 $ - $ 412
Investments 7 72 96,966 - 97,045
Accounts Receivable (Net of Allowances) - - 341 - 341
Due.from Other Funds - - 7,608 - 7,608
Due from Other Governments -_ -_ -_ 18,179 18,179
Total Assets $ 21 $ 98 $ 105,287 $ 18,179 $ 123,585
LIABILITIES AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 122 $ 1 $ 20,701 $ - $ 20,824
Due to Other Funds - - 2,085 18,179 20,264
Accrued and Other Liabilities -_ 700 24,241 ^_ 24,941
Total Liabilities 122 701 47,027 18,179 66,029
Fund Balance:
Restricted (101) (603) 58,260 -_ 57,556
Total Fund Balance (101) (603) 58,260 -_ 57,556
Total Liabilities and Fund Balance $ 21 $ 98 $ 105,287 $ 18,179 $ 123,585
117
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, 2014 (Amounts are in Thousands of Dollars)
Highway and
Transportation Projects
REVENUES
Investment Income $ -
Miscellaneous -
Total Revenues
Building Projects
Equipment Projects
B 710 2,645 3,355
Chicago Public Building Commission
$
Total Nonmajor Capital Project Funds
710 2,645 3,355
EXPENDITURES
Capital Outlay -_ - 67,854 -_ 67,854
Total Expenditures -_ -_ 67,854 -_ 67,854
Revenues Over (Under) Expenditures -_ .- (64,499) -_ (64,499)
OTHER FINANCING SOURCES (USES)
Issuance of Debt - - 90,127 - 90,127
Transfers In - - 10,436 - 10,436
Transfers Out -_ - (29,761) -_ (29,761)
Total Other Financing Sources (Uses) ... - - 70,802 - 70,802
Net Change in Fund Balance - - 6,303 - 6,303
Fund Balance-Beginning of Year (101) (603) 51,957 -_ 51,253
Fund Balance-End of Year $ (101) $ (603) $ 58,260 $ $ 57,556
118
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.)
119
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Schedule E-1
CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2014
(Amounts are in Thousands of Dollars)
License and
Payroll Payroll Other Special Special
Clearing Deduction Clearing Deposit Assessmenl
ASSETS: Cash,
January 1,2014 $ 332 $ 11,814 $ 66,531 $ 30,540 $ 789 $ 110,006
Additions 3,759,174 5,586 505,245 106,178 3,387 4,379,570
Deductions 3,759,070 7,238 548,839 119,041 2,186 4,436,374
Cash,
December 31,2014 436 10,162 22,937 17,677 1,990 53,202
Investments,
January 1,2014 183 5,586 60,234 20,113 3,342 89,458
Additions 35,883 7,238 3,745,679 20,159 2,758 3,811,717
Deductions 183 5,586 3,756,785 25,224 3,950 3,791,728
Investments,
December 31,2014 35,883 7,238 49,128 15,048 2,150 109,447
Cash and Investments with Escrow Agent,
January 1,2014 - - 8,181 122 - 8,303
Additions - - 93,913 - - 93,913
Deductions -__ 95,779 -_ - 95,779
Cash and Investments with Escrow Agent,
December 31, 2014 -_ - 6,315 122 - 6,437
Accounts Receivables,
January 1,2014 |99|3,846 98,713 50,251 1,036 153,848
Additions |99|- 183,631 140,436|99|324,079
Deductions |99|- 144,089 128,049 10 272,153
Accounts Receivables,
December 31,2014 |99|3,846 138,255 62,638 1,034 205,774
120
Schedule E-1 - Concluded CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2014
(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 1,2014 $ 517 $ 21,246 $ 233,659 $ 101,026 $ 5,167 $ 361,615
Additions 3,795,061 12,824 4,528,468 266,773 6,153 8,609,279
Deductions 3,759,258 12,824 4,545,492 272,314 6,146 8,596,034
Total Assets,
December 31,2014 $ 36,320 $ 21,246 $ 216,635 $ 95,485 $ 5,174 $ 374,860
LIABILITIES:
Voucher Warrants Payable,
January 1,2014 $ 4,218 $ 34 $ 31,333 $ 2,564 $ 4 $ 38,153
Additions 8,274,699 - 434,292 9,224 12 8,718,227
Deductions 8,265,455 - 443,489 9,890 12 8,718,846
Voucher Warrants Payable,
December 31,2014 13,462 34 22,136 1,898 4 37,534
Accrued Liabilities,
January 1,2014 (3,701) 21,212 122,492 98,462 5,163 243,628
Additions 1,198,137 - 152,571 4,092 23 1,354,823
Deductions 1,171,578 - 158,267 8,967 16 1,338,828
Accrued Liabilities,
December 31,2014 22,858 21,212 116,796 93,587 5,170 259,623
Total Liabilities,
January 1,2014 517 21,246 153,825 101,026 5,167 281,781
Additions 9,472,836 - 586,863 13,316 35 10,073,050
Deductions 9,437,033 - 601,756 18,857 28 10,057,674
Total Liabilities,
December 31,2014 $ 36,320 $ 21,246 $ 138,932 $ 95,485 $ 5,174 $ 297,157
Deferred Inflows,
January 1,2014 - - 79,834 - - 79,834
Additions - - 105,774 - - 105,774
Deductions - - 107,905 - - 107,905
Deferred Inflows,
December 31,2014 $ -_ $ $ 77,703 $ $ $ 77,703
Total Liabilities and Deferred Inflows,
December 31,2014 $ 36,320 $ 21,246 $ 216,635 $ 95,485 $ 5,174 $ 374,860
121
I
Schedule E-2
CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - PENSION TRUST FUNDS COMBINING STATEMENT OF PLAN NET POSITION December 31, 2014
(Amounts are in Thousands of Dollars)
Pension Trust Funds
Municipal
Employees' Laborers' Policemen's Firemen's Total
ASSETS
Cash and Cash Equivalents $ 489 $ . 49,893 $ 135,836 $ 48,055 $ 234,273
Receivables
Employer and Other 192,742 19,120 286,557 101,530 599,949
Interest and Dividends 12,940 1,844 6,099 3,042 23,925
Total Receivables 205,682 20,964 292,656 104,572 623,874
Due from City 17,989 1,590 19,981 11,959 51,519
Property, Plant,
Equipment and Other 15_ 417 -_ 138 570
Investments, at Fair Value Bonds and U.S. Government
Obligations 1,284,769 250,010 719,988 171,902 2,426,669
Stocks 2,271,545 739,792 1,493,568 634,793 5,139,698
Mortgages and Real Estate 493,998 45,735 94,281 34,370 668,384
Other 1,017,195 285,677 526,682 33,385 1,862,939
Total Investments 5,067,507 1,321,214 2,834,519 874,450 10,097,690
Invested Securities Lending
Collateral 391,443 65,235 288,542 160,969 906,189
Total Assets 5,683,125 1,459,313 3,571,534 1,200,143 11,914,115
LIABILITIES
Voucher Warrants Payable 112,197 5,196 220,978 3,166 341,537
Securities Lending Collateral 391,443 65,235 288,542 160,969 906,189
Total Liabilities 503,640 70,431 509,520 164,135 1,247,726
Deferred Inflows -_ 787 -_ -_ 787
Net Position Restricted for
Pension Benefits $ 5,179,485 $ 1,388,095 $ 3,062,014 $ 1,036,008 $ 10,665,602
122
Schedule E-3
CITY OF CHICAGO, ILLINOIS
FIDUCIARY FUNDS - PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION
Year Ended December 31, 2014
(Amounts are in Thousands of Dollars)
Pension Trust Funds
Municipal Employees'
ADDITIONS
Contributions
Employees $
City _
Total Contributions
Investment Income Net Appreciation in Fair
Value of Investments
Interest, Dividends and Other ..
Investment Expense
Net Investment Income
Securities Lending Transactions
Securities Lending Income
Securities Lending Expense
Net Securities Lending
Transactions
Total Additions
DEDUCTIONS Benefits and Refunds of
Deductions
Administrative and General
Total Deductions
Net Decrease in Net Position
Net Position Restricted for
Pension Benefits:
Beginning of Year
End of Year $
129,972 158,798
16,359 14,521
95,676 187,075
48,056 109,805
288,770
30,880
282,751
157,861
290,063 470,199
174,388 132,049 (24,628)
40,042 23,194 (10,305)
136,127 55,333 (9,984)
14,637 21,542 (5,989)
760,262
281,809
52,931
181,476
30,190
365,194 232,118 (50,906)
701 772
138 324
985 181
887 (202)
546,406
1,473
462
1,166
685
2,711 1,075
572,052
84,273
465,393
188,736
3,786
807,674 6,569
150,017 3,832
664,338 4,243
266,363 3,069
1,310,454
814,243
153,849
668,581
269,432
1,888,392 17,713
(242,191)
(69,576)
(80,696)
(203,188)
5,421,676
1,457,671
3,265,202
1,116,704
1,906,105 (595,651)
11,261,253
5,179,485 $ 1,388,095 $ 3,062,014 $ 1,036,008 $ 10,665,602
123
This Page Intentionally Left Blank
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 overtime.
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 affordability 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.
125
Table 1
CITY OF CHICAGO
NET POSITION BY COMPONENT
Last Ten Fiscal Years Ended December 31, 2014
(Amounts are in Thousands of Dollars)
2005
Governmental Activities:
Net Investment in Capital Assets .. $ 514,271
Restricted 2,632,804
Unrestricted (deficit) (1,597,634)
Total governmental activities,
net position $ 1,549,441
Business-type activities:
Net Investment in Capital Assets .. $ 1,879,343
Restricted 886,488
Unrestricted (1,603,766)
Total business type activities,
net position $ 1,162,065
Primary Government:
Net Investment in Capital Assets .. $ 2,393,614
Restricted 3,519,292
Unrestricted (3,201,400)
Total primary government,
net position $ 2,711,506
2007
2008
$ 570,665 2,980,207 (3,435,506)
494,930 2,842,149 (4,092,388)
2006
$
$ 574,393 2,451,160 (2,003,328)
$ 1,022,225
$ 2,168,833 881,908 (1,561,634)
115,366 $ (755,309)
$ 2,323,394 779,894 (1,517,891)
$ 2,739,498 3,862,115 (4,997,140)
$ 1,323,799 $ 1,489,107 $ 1,585,397
830,088
$
$ 2,818,324 3,622,043 (5,610,279)
$ 2,346,024 $ 1,604,473
Note: The City began to report accrual information when it implemented GASB Statement No. 34 in fiscal year ended 2002.
(1) As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.
126
I
2009 (1)
$ 251,103 3,735,128 (5,840,026)
$ (1,853,795)
$ (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)
$ 2,286,658 821,909 (1,541,136)
$ 1,567,431
$ 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
$ 2,537,761 4,557,037 (7,381,162)
$ (286,364)
$ 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)
127
Table 2
CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2005 2006 2007 2008
Expenses
Governmental Activities:
General Government $ 1,842,353 $ 2,088,299 $ 2,452,145 $ 2,384,586
Public Safety 1,834,008 2,300,048 2,435,437 2,434,842
Employee Pensions 388,053 ...
Streets and Sanitation 353,976 337,103 367,222 371,112
Transportation 285,598 292,679 333,401 381,090
Health 147,376 170,769 175,577 170,838
Cultural and Recreational 114,504 119,193 128,003 140,065
Other 9,892
Interest on Long-term Debt 335,373 371,523 385,305 381,504
Total Governmental Activities 5,311,133 5,679,614 6,277,090 6,264,037
Business-type Activities:
Water 326,444 324,075 350,181 371,441
Sewer 132,727 130,471 136,961 158,292
Chicago Midway
International Airport 170,959 188,092 211,082 217,609
Chicago-O'Hare
International Airport 692,575 697,497 751,351 803,404
Chicago Skyway 16,915 12,752 13,555 12,359
Total Business-type Activities 1,339,620 1,352,887 1,463,130 1,563,105
Total Primary Government $ 6,650,753 $ 7,032,501 $ 7,740,220 $ 7,827,142
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.
128
I
i
2010
$ 2,364,754 $ 2,557,681 $ 2,734,419 $ 2,751,944 $ 2,667,205 $ 2,857,789
2,521,151 2,824,028 2,689,471 2,910,160 3,044,811 2,913,469
297,156 351,101 166,914 129,996
235,863 373,437 142,352 126,939
245,898 410,802 151,152 102,808
228,622 383,510 123,055 146,283
242,500 400,506 119,678 128,302
275,814 475,751 125,068 121,548
386,125
6,217,197
382,502 169,982
399,347 184,888
416,289 194,838
417,499 195,911
442,474 216,587
455,433 225,600
241,080
811,710 11,775
1,582,582
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
$ 7,799,779 $ 8,319,017 $ 8,528,286 $ 8,809,408 $ 8,912,468 $ 9,319,277
129
Table 2 - Continued CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2006 2007 2008
Program Revenues
Governmental Activities:
Licenses, Permits, Fines and
Charges for Services:
General Government $ 363,196
Public Safety 120,853
Streets and Sanitation 36,980
Transportation 23,260
Health 4,165
Cultural and Recreational 24,288
Operating Grants and Contributions ... 637,655
Capital Grants and Contributions 133,673
Total Governmental Activities 1,344,070
$ 385,082 $ 422,363 $ 440,023
151,835 155,529 129,518
36,058 41,467 40,578
10,224 13,262 14,071
5,529 2,795 3,157
23,127 24,412 25,725
659,279 610,974 624,356
142,705 137,613 139,949
1,413,839 1,408,415 1,417,377
Business-type Activities: Licenses, Permits, Fines and Charges for Services:
Water 344,267 330,439 334,377 370,244
Sewer 143,522 136,437 138,681 160,005
Chicago Midway
International Airport 92,228 105,570 107,253 124,985
Chicago-O'Hare
International Airport 532,877 545,916 652,763 684,282
Chicago Skyway 1,896
Capital Grants and Contributions 228,467 273,320 268,331 224,823
Total Business-type Activities and
Program Revenues 1,343,257 1,391,682 1,501,405 1,564,339
Total Primary Government
Program Revenues $ 2,687,327 $ 2,805,521 $ 2,909,820 $ 2,981,716
Net (Expenses)/Revenues
Governmental Activities $ (3,967,063) $ (4,265,775) $ (4,868,675) $ (4,846,660)
Business-type Activities 3,637 38,795 38,275 1,234
Total Primary Government
Net Expense $ (3,963,426) $ (4,226,980) $ (4,830,400) $ (4,845,426)
130
I
2010
158,490 30,990 24,895 2,504 22,375 611,301 115,261
150,710 38,092 21,640 8,332 21,635 674,677 114,871
211,157 37,291 28,613 7,796 7,201 788,812 282,008
199,572 42,138 39,343 1,751 14,454 748,256 172,456
382,617 $ 370,028 $ 388,886 $ 452,892 $ 467,423 $
1,399,985
1,751,764
1,670,862
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
410,213 175,163
122,301
624,443
211,174
1,543,294
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
$ 2,891,727 $ 3,154,577 $ 3,503,545 $ 3,643,143 $ 3,826,571 $ 3,879,431
32,271
167,107
402,823
370,540
100,093
$ (4,868,764) $ (5,264,533) $ (5,057,012) $ (5,333,372) $ (5,488,720) $ (5,810,386)
(39,288)
$ (4,908,052) $ (5,164,440) $ (5,024,741) $ (5,166,265) $ (5,085,897) $ (5,439,846)
131
Table 2 - Concluded CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2005
General Revenues and Other Changes in Net Position
Governmental Activities: Taxes
Property Tax $ 696,085
Utility Tax 539,325
Sales Tax 248,807
Transportation Tax 337,993
Transaction Tax 325,227
Special Area Tax 386,537
Other Taxes 205,811
Grants and Contributions Not
Restricted to Specific Programs 606,509
Unrestricted Investment Earnings 80,728
Loss on Capital Assets
Transfers 1,236,099
Miscellaneous 89,825
Total Governmental Activities 4,752,946
57,916 (34,720)
(1,236,099)
(1,212,903)
3,540,043 $ 3,861,498 $ 4,088,849 $ 4,071,041
Business-type Activities:
Investment Earnings
Miscellaneous
Special Item
Transfers
Total Business-type Activities
Total Primary Government $
Change in Net Position
Governmental Activities $ 785,883 $
Business-type Activities (1,209,266) _
Total Primary Government $ (423,383) $_
(1) As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.
132
$ 797,026 $ 579,101 252,282 333,199 205,026 501,042 250,982
601,198 ' 12,296
238,126 3,770,278
796,928 $
561,936
260,364
335,235
227,772
477,241
259,325
654,043 100,269
149,902 3,823,015
934,870 564,236 310,626 331,441 250,486 457,192 269,258
598,498 64,294
1,000 175,758 3,957,659
$ 896,246 548,682 294,417 373,544 281,957 274,617 294,280
692,232 92,050
135,511 3,883,536
$ 906,740 547,651 307,837 381,080 344,493 306,057 298,951
754,716 (6,259) (16,886)
139,710 3,964,090
$ 926,839 570,469 324,273 406,624 379,256 260,256 323,946
740,911 62,400
194,415 4,189,389
12,381 8,941
6,831 50,190
25,197 38,842
(13,243) 47,354
35,849 49,430
21,322
57,021
28,294
34,111
85,279
48,517 34,687 (53,910) (1,000)
64,039
$ 3,791,600 $ 3,880,036 $ 3,985,953 $ 3,947,575 $ 3,998,201 $ 4,274,668
$ (1,098,486) (17,966) $ (1,116,452)
$ (1,441,518) 157,114 $ (1,284,404)
$ (1,099,353)
60,565
$ (1,038,788)
$ (1,449,836) 231,146 $ (1,218,690)
$ (1,524,630) 436,934 $ (1,087,696)
$ (1,620,997) 455,819 $ (1,165,178)
133
I
Table 3
CITY OF CHICAGO, ILLINOIS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) Last Ten Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Percent of Total
Percent of Total
Percent of Total
Revenues:
Property Tax $ 739,419
Utility Tax 539,325
Sales Tax 499,228
Transportation Tax 337,993
State Income Tax 354,022
Transaction Tax 325,227
Special Area Tax 346,580
Other Taxes 205,811
Total Taxes 3,347,605
Federal/State Grants _ 806,472
Internal Service '273,516
Licenses and Permits .. 120,904
Fines 210,850
Investment Income 80,728
Charges for Services 131,139
Miscellaneous 97,093
Total Revenues $ 5,068,307
% $
14.6 10.6 9.8 6.7 7.0 6.4 6.8 4.1
665,990 522,089 559,156 337,780 380,111 339,020 374,342 233,620
12.8 10.0 10.7 6.5 7.3 6.5 7.2 4.5
12.1 10.1 10.4 6.1 7.9 5.6 8.9 4.5
% $
/o
66.1 15.9 5.4 2.4 4.2 1.6 2.6 1.9
3,412,108 823,504 275,191 117,689 221,819 148,631 155,215 51,774
65.5 15.8 5.3 2.3 4.3 2.8 3.0 1.0
65.6 14.3 5.5 2.7 4.4 3.3 2.8 1.4
661,707 552,179 570,927 332,459 433,446 304,715 488,193 245,408
3,589,034 781,967 303,827 148,172 240,277 182,700 151,369 79,956
100.0 % $ 5,205,931 100.0 % $ 5,477,302 100.0 %
Percent of Total
Percent of Total
Percent of Total
Revenues:
Property Tax $ 941,398
Utility Tax 548,682
Sales Tax 594,290
Transportation Tax 373,544
State Income Tax 391,285
Transaction Tax 281,957
Special Area Tax 370,454
• Other Taxes 294,280
Total Taxes 3,795,890
Federal/State Grants 877,864
Internal Service 319,285
Licenses and Permits .. 117,568
Fines 306,510
Investment Income 90,885
Charges for Services 170,724
Miscellaneous 135,511
Total Revenues $ 5,814,237
% $
16.2 9.4
10.2 6.5 6.7 4.9 6.3 5.0
15.4 9.4
10.9 6.7 6.7 6.3 5.5 5.4
866,149 547,651 623,942 381,080 436,740 344,493 332,040 298,951
15.5 9.8
11.2 6.8 7.8 6.2 5.9 5.4
% $
%
65.2 15.1 5.5 2.1 5.3 1.6 2.9 2.3
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
929,841 570,469 658,799 406,624 404,050 379,256 331,380 323,946
3,831,046 708,702 324,601 123,633 329,460 (19,111) 161,415 122,710
100.0 % $ 5,582,456 100.0 % $ 6,050,479 100.0 %
NOTE:
(1) Includes General, Special Revenue, Permanent, Debt Service and Capital Project Funds.
134
Percent Percent ' Percent Percent
2008 of Total 2009 of Total 2010 of Total 2011 of Total
$ 729,823 13.1 % $
629,497 11.3
548,571 9.9
321,362 5.8
435,393 7.8
275,434 4.9
552,709 9.9
262,734 4.7 _
3,755,523 67.4
796,911 14.2
329,643 5.9
114,707 2.1
274,443 4.9
90,176 1.6
144,161 2.6
79,279 1.3
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
$ 5,584,843 100.0 % $ 5,335,909 100.0 % $ 5,385,290 100.0 % $ 5,856,727 100.0 %
REVENUE SOURCES
¦ Other
? Internal Service Earnings
¦ Federal/State Grants
? Taxes
2,000
1,000
|10 10|2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
135
Table 4
CITY OF CHICAGO, ILLINOIS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2005
Percent of Total
Percent of Total
Percent of Total
Expenditures: Current:
Public Safety $1,611,923 28.0% $1,851,356 29.5 % $1,880,599 30.8%
General Government 1,620,307 28.2 1,523,482 24.3 1,650,679 27.1
Employee Pensions 388,053 6.7 396,923 6.3 371,649 6.1
Streets and Sanitation 339,760 5.9 353,828 5.6 377,485 6.1
Transportation 221,377 3.8 244,381 3.9 267,476 4.4
Health 166,580 2.9 173,594 2.8 195,254 3.2
Cultural and Recreational 95,153 1.7 99,841 1.6 108,527 1.8
Other 9,382 0.1 9,112 0.1 4,427 0.1
Capital Outlay 452,284 7.9 915,311 14.6 602,433 9.9
Debt Service:
Principal Retirement 543,413 9.5 375,028 6.0 297,503 4.9
Interest and Other Fiscal
Charges 301,662 5.3 331,507 5.3 342,489 5.6
Total Expenditures $5,749,894 100.0% $6,274,363 100.0% $6,098,521 100.0%
Debt Service as a Percentage of
Non Capital Expenditures (2) 15.8% 12.9% 11.4 %
Percent Percent Percent
2012 of Total 2013 of Total 2014 of Total
Expenditures: Current:
Public Safety $2,075,959 31.7% $2,034,896 32.1 % $2,066,979 28.8%
General Government 1,806,541 27.5 1,834,558 29.0 2,043,557 28.5
Employee Pensions 458,951 7.0 444,748 7.0 483,493 6.7
Streets and Sanitation 228,100 3.6 241,787 3.8 269,393 3.8
Transportation 514,303 7.8 443,199 7.0 518,501 7.2
Health 127,567 1.9 126,599 2.0 128,769 1.8
Cultural and Recreational 102,384 1.6 97,487 1.6 93,525 1.4
Other 11,725 0.1 7,681 0.1 5,410 0.0
Capital Outlay 435,600 6.6 340,481 5.4 395,216 5.5
Debt Service:
Principal Retirement 340,754 5.2 297,152 4.7 599,395 8.4
Interest and Other Fiscal
Charges 461,962 7.0 464,587 7.3 568,156 7.9
Total Expenditures $6,563,846 100.0% $6,333,175 100.0% $7,172,394 100.0%
Debt Service as a Percentage of
Non Capital Expenditures (2) 13.7% 13.1 % 17.9%
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.
136
Percent Percent Percent Percent
2008 of Total 2009 of Total 2010 of Total 2011 of Total
$1,892,152 1,804,925 413,690 382,628 334,684 184,597 117,664 14,483 661,464
27.7 % 26.4
6.0
5.6
4.9
2.7
1.7
0.2
9.7
$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
656,805 376,297
2.8 6.5
$6,839,389 100.0% $6,269,395 100.0% $6,334,422 100.0% $6,621,631 100.0%
16.7 %
in c o
Public Safety
General Government
Other
¦ Debt Service
Streets and Sanitation
Capital Outlay
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
137
Table 4A
CITY OF CHICAGO, ILLINOIS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2014 (Amounts are in Thousands of Dollars) Modified Accrual Basis of Accounting
2005 2006 2007 2008
Excess of revenues over
(under) expenditures $ (681,587) $ (1,068,432) $ (621,219) $ (1,254,546)
Other Financing
Sources (Uses):
762,833
(276,607)
670,035 (668,035)
795,432
(186,421)
293,448 (293,448)
$ 1,653,881
(951,419)
332,016 (331,016)
703,462
$ 1,871,896
(1,186,065)
1,469,857 (233,758)
1,921,930~ $ 1,240,343
Issuance of Debt,
including premium/discount Payment to Refunded Bond
Escrow Agent
Issuance of line of credit
Transfers in
Transfers out
488,226
609,011
Total other financing sources
$ (580,206) $ 82,243 $ (645,535)
(uses)
Net change in fund balances
138
I
I
2013
$ (933,486) $ (949,132) $ (764,110) $ (749,609) $ (750,719) $ (1,121,915)
$ 1,001,302
(213,435)
2,253,459 (2,253,459)
787,867
$ 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
139
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i
!
Table 5
CITY OF CHICAGO, ILLINOIS FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2014 (Amounts Are in Thousands of Dollars) (Modified Accrual Basis of Accounting)
2005 2006 2007 2008
General Fund:
Reserved $ 53,171 $ 35,557 $ 39,673 $ 48,217
Unreserved 57,648 26,834 4,634 226
Total General Fund 110,819 62,391 44,307 48,443
General Fund Balance: (2)
Nonspendable $
Assigned
Unassigned
Total Fund Balance
Other Governmental Funds:
Reserved $ 1,350,927 $ 800,546 $ 1,191,674 $ 461,830
Unreserved, Reported in:
Special Revenue Funds 525,769 723,353 816,551 959,424
Capital Projects Funds 832,129 696,630 906,603 372,063
Debt Service Funds - - (556,819) (551,137)
Permanent Fund (1) 274,272 231,017 191,391 660,333
Total All Other Governmental Funds 2,983,097 2,451,546 2,549,400 1,902,513
Total Governmental Funds $ 3,093,916 $ 2,513,937 $ 2,593,707 $ 1,950,956
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.
140
2013
52,048 2,658
54,706
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
$ 1,418,399 $ 1,419,714
(409,796) 321,251
422,319
1,752,173
(349,517) 534,013
138,724
1,742,934
$ 1,806,879 $ 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
141
Table 6
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2010 (3) 2011 (3) 2012 (3) 2013 (3) 2014 (3)
Revenues:
Utility Tax $ 467,411 $ 467,630 $ 462,475 $ 456,869 $ 473,496
Sales Tax 495,842 536,281 572,185 583,681 620,299
State Income Tax 282,011 236,521 282,779 308,899 278,031
Other Taxes 590,575 618,384 694,383 749,742 803,961
Federal/State Grants 1,735 1,294 1,074 1,871 2,335
Other Revenues (1) 773,278 921,056 907,760 929,429 998,028
Total Revenues 2,610,852 2,781,166 2,920,656 3,030,491 3,176,150
Expenditures: Current:
Public Safety 1,828,984 1,895,404 1,956,152 1,953,572 2,020,072
General Government 903,890 863,622 864,556 885,268 929,918
Other (2) 296,063 278,561 258,501 267,852 270,899
Debt Service 5,004 2,849 2,160 2,382 10,369
Total Expenditures 3,033,941 3,040,436 3,081,369 3,109,074 3,231,258
Revenues Under Expenditures (423,089) (259,270) (160,713) (78,583) (55,108)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 16,500 95,000 55,000
Transfers In 502,502 372,744 31,617 21,018 39,700
Transfers Out (13,600) (14,357) (26,965) (10,583) (10,081)
Total Other Financing Sources (Uses). 505,402 453,387 59,652 10,435 29,619
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses 82,313 194,117 (101,061) (68,148) (25,489)
Fund Balance-Beginning of Year 54,706 135,541 335,533 231,302 167,057
Change in Inventory (1,478) 5,875 (3,170) 3,903 (290)
Fund Balance-End of Year $ 135,541 $ 335,533 $ 231,302 $ 167,057 $ 141,278
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, 2010-2014.
142
Table 7
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2010 (3) 2011 (3) 2012 (3) 2013 (3) 2014 (3)
Revenues:
Property Tax $ 316,618 $ 373,163 $ 350,408 $ 316,958 $ 357,457
Utility Tax 72,201 83,317 63,883 68,458 74,641
State Income Tax 103,657 108,153 108,506 127,841 126,019
Other Taxes 588,717 217,188 607,135 589,422 624,676
Federal/State Grants 814,144 974,757 876,790 706,831 809,840
Other Revenues (1) 121,017 105,705 149,956 96,263 162,996
Total Revenues 2,016,354 1,862,283 2,156,678 1,905,773 2,155,629
Expenditures: Current:
Public Safety 80,744 88,908 119,807 81,324 46,907
General Government 882,553 1,193,781 941,885 949,290 1,113,639
Employee Pensions 435,432 481,407 458,951 444,748 483,493
Other (2) 521,876 522,377 725,578 648,901 744,699
Capital Outlay 4,903 2,964 5,259 7,187 9,863
Debt Service 3,898 2,533 723 115 4,332
Total Expenditures 1,929,406 2,291,970 2,252,203 2,131,565 2,402,933
Revenues Under Expenditures 86,948 (429,687) (95,525) (225,792) (247,304)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 88,018 72,925 70,541 125,063 17,768
Transfers In 94,424 149,574 76,640 91,022 184,033
Transfers Out (65,807) (380,543) (56,622) (59,631) (64,863)
Total Other Financing Sources (Uses)... 116,635 (158,044) 90,559 156,454 136,938
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses 203,583 (587,731) (4,966) (69,338) (110,366)
Fund Balance - Beginning of Year (344,888) (141,305) (729,036) (734,002) (803,340)
Fund Balance - End of Year $ (141,305) $ (729,036) $ (734,002) $ (803,340) $ (913,706)
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, 2010-2014.
143
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I
Table 8
CITY OF CHICAGO, ILLINOIS DEBT SERVICE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2010 (2) 2011 (2) 2012 (2) 2013 (2) 2014 (2)
Revenues:
Property Tax $ 437,463 $ 515,368 $ 590,990 $ 549,191 $ 572,384
Utility Tax 22,324 13,289 22,324 22,324 22,332
Sales Tax 31,162 26,875 22,105 40,261 38,500
Other Taxes 129,566 146,126 18,717 17,400 12,569
Other Revenues (1) 61,004 44,101 53,340 11,888 36,443
Total Revenues 681,519 745,759 707,476 641,064 682,228
Expenditures:
Debt Service 747,061 613,048 799,833 759,242 1,152,850
Total Expenditures 747,061 613,048 799,833 ¦ 759,242 1,152,850
Revenues Over (Under) Expenditures.. (65,542) 132,711 (92,357) (118,178) (470,622)
560,524 580,015 337,410|99|371,207
(412,184) (476,787) (268,397) - (300,600)
44,185 47,134 47,322 46,352 411,413
(110,049) (176,285) (83,359) (89,157) (268,872)
82,476 (25,923) 32,976 (42,801) 213,148
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium
Payment to Refunded Bond Escrow Agent
Transfers In
Transfers Out
Total Other Financing Sources (Uses).
Revenues and Other
Financing Sources
Over (Under) Expenditures and
Other Financing Uses 16,934 106,788 (59,381) (160,979) (257,474)
Fund Balance - Beginning of Year 406,118 423,052 529,840 470,459 309,480
Fund Balance - End of Year $ 423,052 $ 529,840 $ 470,459 $ 309,480 $ 52,006
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, 2010-2014.
144
Table 9
CITY OF CHICAGO, ILLINOIS CAPITAL PROJECT FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
2010 (2) 2011 (2) 2012 (2) 2013 (2) 2014 (2)
Revenues:
Other Revenues (1) $ 43,135 $ 16,243 $ 11,343 $ 5,128 $ 36,472
Total Revenues 43,135 16,243 11,343 5,128 36,472
Expenditures:
Capital Outlay 624,007 467,249 430,341 333,294 385,353
Total Expenditures 624,007 467,249 430,341 333,294 385,353
Revenues Under Expenditures (580,872) (451,006) (418,998) (328,166) (348,881)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 769,348 464,386 295,606 110,300 630,575
Issuance Line of Credit - - - 144,673
Transfers In 6,296 2,759 22,843 1,930 17,440
Transfers Out (99)_ (25)_ (11,804) (951) (308,770)
Total Other Financing Sources (Uses). 775,545 467,120 306,645 255,952 339,245
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses 194,673 16,114 (112,353) (72,214) (9,636)
Fund Balance - Beginning of Year 388,624 583,297 599,411 487,058 414,844
Fund Balance-End of Year $ 583,297 $ 599,411 $ 487,058 $ 414,844 $ 405,208
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, 2010-2014.
145
Table 10
CITY OF CHICAGO, ILLINOIS PROPERTY TAX LEVIES BY FUND (1) Five Years Ended December 31, 2014 (Amounts are in Thousands of Dollars)
Percent
2010 2011 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 $ 73,377 - %
409,979 411,905 0.47
140,165 143,785 2.58
132,531 126,997 (4.18)
64,323 66,125 2.80
13,714 11,759 (14.26)
$ 834,089 $ 833,948 (0.02)
NOTES:
See Table 11 - PROPERTY LEVIES, COLLECTIONS AND ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES 2005 - 2014. 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.
146
I
Percent Percent Percent
2012 Change 2013 Change 2014 Change
$ 73,481 0.14 % $ 74,231 1.02 % $ 97,061 30.76 %
411,489 (0.10) 411,807 0.08 411,459 (0.08)
143,865 0.06 138,146 (3.98) 136,680 (1.06)
129,138 1.69 122,066 (5.48) 123,239 0.96
65,461 (1.00) 81,518 24.53 81,363 (0.19)
11,202 (4.74) 10,486 (6.39) 10,934 4.27
$ 834,636 0.08 $ 838,254 0.43 $ 860,736 (4) 2.68
147
I
Table 11
CITY OF CHICAGO, ILLINOIS
PROPERTY LEVIES, COLLECTIONS AND
ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES
Last Ten Years Ended December 31, 2014
(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
$ 718,071 $ 694,593 96.73 % $ 6,098 $ 700,691 97.58 % S 17,380 $
719,230 630,666 87.69 59,984 690,650 96.03 28,580
749,351 712,008 95.02 13,196 725,204 96.78 24,147
834,152 776,522 93.09 32,676 809,198 97.01 24,954
834,109 700,579 83.99 105,548 806,127 96.65 27,982
834,089 790,141 94.73 22,202 812,343 97.39 21,746
833,948 800,582 96.00 13,410 813,992 97.61 19,597 359
834,636 804,245 96.36 21,314 825,559 98.91 8,895 182
838,254 807,985 96.39 - 807,985 96.39 25,137 5,132
860,736 (4) - N/A - - N/A 34,429 826,307
Total Net Outstanding Taxes Receivable $ 831,980
NOTES:
Taxes for each year become due and payable in the following year. For example, taxes for the 2014 tax levy become due and payable in 2015.
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.
148
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)
2013 EAV
Percent-tage of Total Rank EAV
2004 EAV
Percent-tage of Total Rank EAV
Willis Tower (4) $ 370,197|910|AON Building (3) 248,906|910|Health Care service Corporation Blue Cross ... 201,987|910|Prudential Plaza 193,495|910|Water Tower Place 190,952|910|Chase Plaza 190,441|910|AT&T Corporate Center 1 183,113|910|Three First National Plaza 177,863|910|Citadel Center 177,008 9
300 N. LaSalle 159,537 10
Chicago Mercantile Exchange
Leo Burnett Building
Citicorp Plaza
Totals $ 2,093,499
0.59 %
0.40
0.32
0.31
0.31
0.31
0:29
0.29
0.28
0.26
489,383 322,214
279,002 172,700 244,202 253,165 179,451
321,563 177,450 193,557
3.36% $ 2,632,687|101010|4 10 6 5 8
0.89 % 0.58
0.50 0.31 0.44 0.46 0.32
0.58 0.32 0.35
4.75 %
NOTES:
Source: Cook County Treasurer's Office, Cook County Assessor's Office.
2014 information not available at time of publication.
AON Building formerly known as AMOCO Building.
Willis Tower formerly known as Sears Tower.
149
I
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
2004 $ 12,988,216 $ 1,883,048 $ 10,401,429 $ 465,462 $ 25,738,155
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
2013 (9) 15,410,659 1,236,401 10,172,186 494,714 27,313,960
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.
(9) 2014 information not available at time of publication.
(10) 2013 information not available at time of publication.
150
State Equalization Factor (6)
2.5757 2.7320 2.7080 2.8439 2.9786 3.3701 3.3000 2.9706 2.8056 2.6621
Total Equalized Assessed Value (7)
55,277,096 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
Total Direct Tax Rate
1.302 1.243 1.062 1.044 1.030 0.986 1.020 1.110 1.279 1.344
Total Estimated Fair Market Value (8)
B 262,080,627 286,354,518 329,770,733 320,503,503 310,888,609 280,288,730 231,986,397 222,856,064 206,915,723 N/A (10)
Ratio of Total Equalized
Assessed to Total Estimated Fair
Market Value (9)
21.09% 20.71 21.08 22.98 26.05 30.21 35.38 33.71 31.53 N/A (10)
EQUALIZED ASSESSED VALUE
j i i i i i i|910|2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
151
I
Table 14
CITY OF CHICAGO, ILLINOIS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Per $100 OF EQUALIZED ASSESSED VALUATION Last Ten Years
Tax Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
City
1.302 1.243 1.062 1.044 1.030 0.986 1.016 1.110 1.279 1.344
Chicago
School Building and Improvement Fund
$
0.117 0.112 1.116 0.119 0.146 0.152
Chicago School Finance Authority
0.177 0.127 0.118 0.091
Board of
Education
3.104 3.026 2.697 2.583 2.472 2.366 2.581 2.875 3.422 3.671
Community College District No. 508
0.242 0.234 0.205 0.159 0.156 0.150 0.151 0.165 0.190 0.199
NOTE:
(1) 2014 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
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total City Tax Extension (2)
$ 719,780 718,071 719,230 749,351 834,152 834,109 834,089 833,948 834,636 838,254
Bond, Note Redemption and Interest
0.647396 0.606566 0.519706 0.550055 0.508488 0.478955 0.494109 0.542475 0.623916 0.653302
Chicago Public Library Bond, Note Redemption and Interest
$
0.113280 0.090041 0.049968 0.039514 0.094354 0.091851 0.094665 0.103443 0.119254 0.125978
Policemen's
Annuity and
Benefit
0.216752 0.231467 0.194953 0.191548 0.172426 0.167552 0.170734 0.191381 0.220459 0.221494
NOTES:
2014 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.
152
i
Chicago Park District
Metropolitan
Water Reclamation
District
Forest Preserve District of Cook County
Cook County
0.455 0.443 0.379 0.355 0.323 0.309 0.319 0.346 0.395 0.420
0.347 0.315 0.284 0.263 0.252 0.261 0.274 0.320 0.370 0.417
0.060 0.060 0.057 0.053 0.051 0.049 0.051 0.058 0.063 0.069
0.593 0.533 0.500 0.446 0.415 0.394 0.423 0.462 0.531 0.560
6.280 5.981 5.302 4.994 4.816 4.627 5.931 5.455 6.396 6.832
Municipal Employees' Annuity and Benefit
Firemen's Annuity and Benefit
Laborers' and Retirement Board Employees' Annuity and Benefit
0.229048 0.231683 0.197399 0.174302 0.162182 0.153704 0.161435 0.169036 0.197892 0.195713
0.095524 0.083243 0.099974 0.088581 0.080787 0.078184 0.078352 0.088014 0.100313 0.130700
0.011763 0.015754 0.016705 0.015651 0.017166 0.016813
1.302 1.243 1.062 1.044 1.030 0.986 1.016 1.110 1.279 1.344
153
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
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Population (1)
2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,695,598 2,695,598 2,695,598 2,695,598
Equalized Assessed Value (2)
59,304,530 69,517,264 73,651,158 80,977,543 84,685,258 82,087,170 75,122,914 65,250,387 62,363,876 N/A (4)
G. O. Bonds
5,077,434 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
G. O. Notes & Commercial Paper
112,495 72,530 77,998 259,097 230,263 268,526 198,132 166,460 270,188
General Certificates Obligation and Other
344,426 322,145 458,654 362,140 439,670 574,755 554,015 528,305 501,490 473,290
Unamortized Premiums (6)
129,002
NOTES:
Source: U.S. Census Bureau.
Source: Cook County Clerk's Office.
Gross Bonded Debt includes bonds, notes and capitalized lease obligations that are noncurrent.
N/A means not available at time of publication.
Amounts are in dollars.
Beginning in 2014, the City will present Unamortized Premiums and Accreted Interest amounts, applicable to General Obligation Bonds, Commercial Paper and Other General Obligation Debt.
i
154
Accreted Interest (6)
290,179
Total Gross -Net of Premiums
& Accretions-Bonded Debt (3)
$
5,534,355 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
Less Reserve for
Debt Service
$
133,011 102,951 70,543 10,080 50,431 58,822 249,355 105,582 16,298 99,725
Net Bonded Debt
5,401,344 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
Ratio of Net Bonded Debt to Equalized Assessed Value
9.11 % 8.18 8.45 7.78 7.88 8.92 9.98 12.01 12.69 N/A (4)
Net Bonded Debt Per Capita (5)
1,865.09 1,963.57 2,149.74 2,174.92 2,303.66 2,527.97 2,782.60 2,906.26 2,936.19 3,187.31
155
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I
I
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)
$ 223,778 $ 242,286
201,865 273,190
143,575 267,698
429,066 302,105
380,946 298,057
336,378 319,423
129,303 369,880
305,879 475,906
218,918 399,794
2014 446,749 442,705
$ 466,064 $ 5,749,894 8.1 %
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
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): $5,729 in 2004-2006, $33,509 in 2007 and $36,632 since 2008.
This includes G. O. Bonds, G. O. Notes, G. O. Certificates, G. O. Commercial Paper, G. O. Line of Credit, Other G. O. Debt, and City Colleges of Chicago Bonds. For FY 2014 the principal payments
for LOC and CP were $144.6 million and 234.6 million, respectively.
For FY 2014, interest payments exclude Michael Reese Loan, QTE and Swap termination fees.
156
Table 18
CITY OF CHICAGO, ILLINOIS
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2014
(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) $ 8,339,626
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..
$ 8,339,626 6,038,973 844,460 250,000 3,466,977 172,535
2,422,619 13,195,564 $ 21,535,190
6,038,973 844,460 250,000 1,670,390 85,457
1,224,149 10,113,429 $ 18,453,055
100.00 % $ 8,339,626 100.00 100.00 100.00
48.18
49.53
50.53
NOTES:
Source: Amount of Net Direct Debt was obtained from each ofthe respective taxing bodies.
Cook County Clerk's Office
Does not include outstanding General Obligation Commercial Paper Notes and Lines of Credit.
157
Table 19
CITY OF CHICAGO, ILLINOIS DEBT STATISTICS Last Ten Years
(Amounts are in Thousands of Dollars Except Where Noted)
2005 2006 2007 2008
Direct Debt $ 5,123,729 $ 5,422,232 $ 5,805,921 $ 6,126,295
Overlapping Debt , 7,574,950 7,750,883 7,904,184 7,529,359
Total Debt $ 12,698,679 $ 13,173,115 $ 13,710,105 $ 13,655,654
Equalized
Assessed Valuation (1) $ 59,304,530 $ 69,517,264 $ 73,645,316 $ 80,977,543
Direct Debt Burden (2) 9.27% 9.14% 8.35% 8.32%
Total Debt Burden (2) 22.97% 22.21% 19.72% 18.54%
Estimated Fair Market
Value (FMV) (5) $ 286,354,518 $ 329,770,733 $ 320,503,503 $ 310,888,609
% of Direct Debt to FMV 1.79% 1.64% 1.81 % 1.97%
% of Total Direct Debt to FMV 4.43% 3.99% 4.28% 4.39%
Population (3) 2,896,016 2,896,016 2,896,016 2,896,016
Direct Debt Per Capita (4) $ 1,769.23 $ 1,872.31 $ 2,004.80 $ 2,115.42
Total Debt Per Capita (4) 4,384.88 4,548.70 4,734.13 4,715.32
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 2004 is $55,277,096.
Source: U.S. Census Bureau.
Amounts are in dollars.
Source: The Civic Federation.
N/A means not available at time of publication.
158
2010
9,158,243
10,384,421
8,539,070
9,877,084
10,338,490
$ 6,866,270 $ 7,328,452 $ 7,628,222 $ 7,939,682 $ 7,670,298 $ 8,339,626
10,113,429
$ 15,405,340 $ 16,486,695 $ 17,505,306 $ 18,324,103 $ 18,008,788 $ 18,453,055
8.48% 19.02%
8.65% 19.47%
9.29% 21.33%
10.57% 24.39%
$ 84,685,258 $ 82,087,170 $ 75,122,914 $ 65,250,387 $ 62,363,876 $
11.76% 27.60%
N/A (6) 13.37% 29.59%
$ 280,288,730 2.45% 5.50%
2,896,016 $ 2,370.94 5,319.49
$ 231,986,397 3.16% 7.11%
2,695,598 $ 2,718.67 6,116.15
222,856,064 3.42% 7.85%
2,695,598 2,829.88 6,494.03
206,915,723 3.84% 8.86%
2,695,598 2,945.43 6,797.79
N/A (6) N/A (6) N/A (6)
2,695,598 2,845.49 6,680.81
N/A (6) N/A (6) N/A (6)
2,695,598 3,093.79 6,845.63
159
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I
Table 20
CITY OF CHICAGO, ILLINOIS
REVENUE BOND COVERAGE
Last Ten Years Ended December 31, 2014
(Amounts are in Thousands of Dollars Except Where Noted)
Proprietary Funds
Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Gross Revenues (1)
$
1,344,175 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
Operating Expense (2)
$
776,318 779,168 856,550 913,499 887,676 911,935 937,233 967,517 969,551 1,042,605
Net Revenue Available for Debt Service
Interest
Debt Service Requirements
Principal
643,705 693,749 689,169 629,263 856,290 830,489 967,503 1,050,820 1,263,703
397,341 416,810 438,553 369,379 379,185 306,916 479,277 494,226 569,475
$ 567,857 $ 543,460 $ 315,585 $
210,891 (3)
168,712
219,482
216,841
220,124
166,825
209,298
277,225
290,340
Percent Coverage
66 % 106 118 105 107 143 175 141 136 147
* Beginning in 2014, revenues are net of provision for doubtfull accounts.
160
Table 20 - Concluded
CITY OF CHICAGO, ILLINOIS
REVENUE BOND COVERAGE
Last Seven Years Ended December 31, 2014
(Amounts are in Thousands of Dollars Except Where Noted)
Tax Increment Financing Funds
Gross Revenues(1)
Operating Expense (2)
Net Revenue Available for Debt Service
Percent Coverage
2007 2008 2009 2010 2011 2012 2013 2014
238,757 296,469 185,947 229,266 266,916 361,783 334,414 567,079
91,378 176,221 37,000 36,535 44,290 43,025 51,194 69,912
509,238 557,596 495,588 474,390 544,415 487,495 427,287 410,018
48,514 58,292 28,740 28,431 31,796 29,136 27,721 30,963
2006 (4)$ 400,404 $ 124,905 $ 275,499 $ 75,248 $ 31,553 $ 106,801
270,481 261,127 309,641 245,124 277,499 125,712 92,873 (157,061)
%
258 193 111 471 377 365 174 118 (156)
Sales Tax and Motor Fuel Tax Funds
Net Revenue Available for Debt Service
Year
2006 (4) $ 643,343
652,883
625,200
578,119
611,707
618,871
678,018
706,315
414,720
Interest
25,930 25,595 26,361 24,245 16,632 25,970 39,349 36,968 33,933
Debt Service Requirements
Total
Principal
6,215 13,030 10,345 5,425 5,715 16,295 17,150 18,040 18,400
Percent Coverage
2001 % 1690 1703 1948 2737 1464 1200 1284 792
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.
Beginning with fiscal year 2006, the City of Chicago will accumulate ten years of data for TIF and Sales Tax and Motor Fuel Tax Funds.
161
Table 21
CITY OF CHICAGO, ILLINOIS
RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Years Ended December 31, 2014
(Amounts are in Thousands of Dollars Except Where Noted)
Governmental Funds
Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Net General Obligation Debt
5,534,355 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
Tax Increment Allocation Bonds and Notes
$ 407,709 351,776 285,363 204,811 179,871 156,881 125,201 106,241 80,127 69,995
Motor Fuel
and Sales Tax Revenue
$
518,800 512,585 499,555 552,345 559,417 553,702 770,312 753,162 735,122 725,395
Installment
Purchase
Agreement
$
10,900 9,200 7,500 5,500 3,500 1,200
Capital Leases
309,813 278,861 245,685 207,065 169,282 177,011 166,787 163,012 171,673 116,858
Water Revenue Bonds
1,031,089 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
Chicago O'Hare International Airport Customer Facility Charge Revenue Bonds
248,750 248,750
NOTES:
See Table 13 for Estimated Fair Market Value
Amounts in Dollars
2013 information not available at time of publication.
2014 information not available at time of publication.
i i
Proprietary Fund Revenue Bonds
Chicago O'Hare International Airport Revenue Bonds
4,387,805 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
Chicago O'Hare International
Airport Passenger Facility Charge Revenue Bonds
1,215,416 796,715 766,255 725,675 709,200 816,110 797,769 750,706 683,780 682,271
Chicago Midway Airport
Revenue Bonds
1,272,115 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
Wastewater Transmission Revenue Bonds
731,963 770,528 754,908 902,904 878,875 1,100,800 1,084,224 1,334,918 1,333,984 1,602,175
Total Primary Government
15,419,965 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
Ratio of Bonded Debt to Estimated Fair Market Value (1)
5.45 4.64 4.95 5.32 6.06 8.19 9.11 10.00 N/A (3) N/A (4)
Per Capita (2)
5,324.54 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
163
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Table 22
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR GENERAL LONG-TERM DEBT (1) December 31, 2014
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
2015. 2016. 2017. 2018. 2019. 2020.
.
2023., 2024. 2025 2026., 2027 2028., 2029., 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
235,676,371 251,071,761 274,536,947 287,151,972 296,243,700 310,673,918 313,592,240 317,338,400 308,653,319 304,457,012 286,518,971 294,491,163 306,594,720 314,069,806 331,094,515 342,657,520 360,543,596 393,923,762 372,676,194 320,437,377 290,017,607 242,156,559 236,632,925 249,831,380 258,780,000 273,540,000 288,970,000 101,745,000 108,170,000
438,327,989 $ 428,190,029 417,278,025 405,156,796 392,074,650 380,656,051 366,603,415 358,074,554 344,358,411 330,795,518 317,922,975 305,724,330 286,553,453 279,468,121 262,816,724 250,782,400 233,271,393 200,278,124 180,186,372 161,123,964 144,210,745 129,763,191 117,049,991 103,859,530 59,742,170 44,981,636 29,557,581 13,254,033 6,829,854
18,170,000 17,880,000 18,250,000 19,150,000 20,334,654 21,440,292 22,567,526 23,737,119 25,039,882 26,401,683 27,843,447 29,361,159 28,708,425 32,523,716 22,679,282 25,039,348 22,997,033 22,007,868 23,144,107 38,945,000 40,925,000 43,045,000 45,275,000 34,870,000 36,615,000 38,445,000
34,316,048 33,396,970 32,487,136 31,590,119 30,648,834 29,688,122 28,710,511 27,637,586 26,510,808 25,323,813 24,073,996 22,757,902 23,709,471 20,079,438 30,060,516 27,934,920 28,897,880 28,265,905 27,627,546 14,174,055 12,195,050 10,074,025 7,843,075 5,496,500 3,753,000 1,922,250
9,335,000 10,640,000 11,795,000 16,010,000 6,020,000 4,135,000 4,375,000 7,685,000
3,272,448 2,795,065 2,306,236 1,756,563 959,730 706,375 493,625 192,125
263,181,371 279,591,761 304,581,947 322,311,972 322,598,354 336,249,210 340,534,766 348,760,519 333,693,201 330,858,695 314,362,418 323,852,322 335,303,145 346,593,522 353,773,797 367,696,868 383,540,629 415,931,630 395,820,301 359,382,377 330,942,607 285,201,559 281,907,925 284,701,380 295,395,000 311,985,000 288,970,000 101,745,000 108,170,000
475,916,485 464,382,064 452,071,397 438,503,478 423,683,214 411,050,548 395,807,551 385,904,265 370,869,219 356,119,331 341,996,971 328,482,232 310,262,924 299,547,559 292,877,240 278,717,320 262,169,273 228,544,029 207,813,918 175,298,019 156,405,795 139,837,216 124,893,066 109,356,030 63,495,170 46,903,886 29,557,581 13,254,033 6,829,854
$ 8,272,246,735 $ 6,988,892,025 $ 725,395,541 $ 589,175,476 $ 69,995,000 $ 12,482,167 $ 9,067,637,276 S 7,590,549,668
NOTE:
(1) The amounts listed above for each year include amounts payable January 1 ofthe following year. Bonds maturing and interest payable January 1, 2015, have been excluded from this schedule because funds for their payment have been provided in the debt service funds. 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, 2014. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.
165
|1010|
Table 23
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR GENERAL OBLIGATION DEBT (1) December 31, 2014
Year Ended Dec. 31,
General Obligation Bonds
406 399 391 382 372 365 354 349 339 328 317 305 286 279 262 250 233 200 180 161 144 129 117 103 59 44 29 13 6
Principal
182,431,371 193,716,761 210,626,947 219,846,972 227,928,700 235,233,918 245,622,240 250,833,400 261,258,319 274,597,012 279,573,971 286,826,163 305,919,720 313,354,806 330,244,515 342,657,520 360,543,596 393,923,762 372,676,194 320,437,377 290,017,607 242,156,559 236,632,925 249,831,380 258,780,000 273,540,000 288,970,000 101,745,000 108,170,000
Alternative Revenue Bonds (2) Principal Interest
$
42,215,000 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
$ 11,030,000 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
$ 7,658,096,735 $ 6,816,185,162 $ 514,790,000 $ 144,519,077 $ 99,360,000 $ 28,187,786
NOTE:
The amounts listed above for each year include amounts payable January 1 ofthe following year. Bonds maturing and interest payable January 1, 2015, have been excluded from this schedule because funds for their payment have been provided in the debt service funds. 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, 2014. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.
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.
166
Totals
Principal Interest
$ 235,676,371 $ 251,071,761 274,536,947 287,151,972 296,243,700 310,673,918 313,592,240 317,338,400 308,653,319 304,457,012 286,518,971 294,491,163 306,594,720 314,069,806 331,094,515 342,657,520 360,543,596 393,923,762 372,676,194 320,437,377 290,017,607 242,156,559 236,632,925 249,831,380 258,780,000 273,540,000 288,970,000 101,745,000 108,170,000
438,327,989 $ 428,190,029 417,278,025 405,156,796 392,074,650 380,656,051 366,603,415 358,074,554 344,358,411 330,795,518 317,922,975 305,724,330 286,553,453 279,468,121 262,816,724 250,782,400 233,271,393 200,278,124 180,186,372 161,123,964 144,210,745 129,763,191 117,049,991 103,859,530 59,742,170 44,981,636 29,557,581 13,254,033 6,829,854
674,004,360 679,261,790 691,814,972 692,308,768 688,318,350 691,329,969 680,195,655 675,412,954 653,011,730 635,252,530 604,441,946 600,215,493 593,148,173 593,537,927 593,911,239 593,439,920 593,814,989 594,201,886 552,862,566 481,561,341 434,228,352 371,919,750 353,682,916 353,690,910 318,522,170 318,521,636 318,527,581 114,999,033 114,999,854
$ 8,272,246,735 $ 6,988,892,025 $ 15,261,138,760
167
Table 24
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR PROPRIETARY FUNDS (1) December 31, 2014
Year Ended December 31,
Water Revenue Bonds
Principal
Wastewater Transmission Revenue Bonds
Principal
2015 $
2016
2017
2018
2019
2025
2036
2037
2038
2039
2040
51,535,284 $ 63,167,995 65,343,747 67,685,879 75,686,904 78,786,447 87,270,089 91,111,298 94,919,414 99,621,559 101,130,091 91,763,724 95,575,551 108,978,731 113,558,291 115,099,256 86,411,654 79,708,551 82,834,402 86,577,993 86,865,000 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
125,420,341 121,520,790 119,364,160 117,073,321 109,101,487 106,148,094 97,507,256 93,760,516 89,790,956 85,556,906 81,327,054 76,821,297 72,335,089 67,664,911 62,682,200 57,414,711 52,136,480 47,762,916 43,662,986 39,413,592 34,986,246 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
46,392,266 48,481,585 50,633,418 52,890,886 48,315,630 47,890,313 49,521,614 51,367,892 53,275,595 65,555,144 49,359,227 51,143,780 53,008,776 59,871,548 62,789,289 65,652,761 68,524,457 71,196,911 73,033,471 75,870,624 78,420,000 73,005,000 76,530,000 68,460,000 59,225,000 31,955,000 33,525,000 17,685,000 18,595,000
76,480,278 74,421,495 72,361,146 70,214,100 75,064,986 75,411,815 73,911,753 72,172,072 70,353,548 58,507,599 74,228,373 72,510,869 70,677,143 48,915,979 45,965,392 42,866,191 39,576,257 36,110,461 32,477,610 28,685,975 24,725,978 20,471,277 16,412,974 12,208,647 8,445,785 4,988,000 3,440,250 1,814,000 929,750
$ 2,381,771,860 $ 1,820,336,705
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, 2015, have been excluded from this schedule because funds for their payment have been provided in the debt service funds. 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, 2014. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.
168
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i
Chicago-O'Hare International Airport and Chicago Midway International Airport Bonds Principal
Interest
Year Ended December 31,
280,990,000 329,200,000 337,155,000 317,140,000 273,240,000 290,525,000 288,395,000 302,385,000 320,460,000 332,630,000 348,725,000 365,345,000 401,215,000 379,520,000 417,885,000 434,025,000 460,090,000 468,735,000 498,095,000 260,680,000 278,565,000 292,450,000 306,155,000 210,255,000 164,685,000 74,975,000 78,730,000 64,385,000
428,574,398 415,047,671 399,033,948 383,240,485 367,806,061 354,244,639 339,692,105 325,071,217 309,697,562 293,457,597 276,571,634 258,844,814 240,523,720 221,137,005 200,974,200 179,644,090 157,653,635 135,702,698 114,167,784 93,604,150 78,377,395 62,130,816 45,374,062 27,400,182 14,915,472 5,803,417 3,641,551 1,363,695
314,322,550 392,639,580 445,177,165 457,731,765 441,142,534 399,916,760 427,316,703 430,874,190 450,580,009 485,636,703 483,119,318 491,632,504 513,929,327 570,065,279 555,867,580 598,637,017 588,961,111 610,995,462 624,602,873 660,543,617 425,965,000 442,515,000 454,630,000 464,235,000 346,875,000 277,675,000 152,030,000 142,120,000 104,570,000 22,670,000
640,650,427 624,516,683 606,772,977 586,321,369 567,406,958 549,365,970 525,663,648 505,624,693 485,215,721 453,762,067 449,013,024 425,903,800 401,857,046 357,104,610 329,784,597 301,255,102 271,356,827 241,527,012 211,843,294 182,267,351 153,316,374 129,254,361 104,153,387 78,571,297 51,792,093 31,319,368 15,918,417 9,953,801 4,506,445 1,133,500
954,972,977 2015
1,017,156,263 2016
1,051,950,142 2017
1,044,053,134 2018
1,008,549,492 2019
949,282,730 2020
952,980,351 2021
936,498,883 2022
935,795,730 2023
939,398,770 2024
932,132,342 2025
917,536,304 2026
2027
927,169,889 2028
885,652,177 2029
899,892,119 2030
860,317,938 2031
852,522,474 2032
836,446,167 2033
842,810,968 2034
2035
571,769,361 2036
558,783,387 2037
542,806,297 2038
398,667,093 2039
308,994,368 2040
167,948,417 2041
152,073,801 2042
109,076,445 2043
23,803,500 2044
$ 8,793,030,000 $ 6,172,445,811 $ 12,776,977,047 $ 9,297,132,219 $ 22,074,109,266
169
Table 25
CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2014
Long-term debt is comprised of the following issues at December 31, 2014 (dollars in thousands):
General Long-term Debt: General Obligation Debt: General Obligation Bonds:
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 - 3.575%
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 - 4.052%
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 - 4.104%
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 - 3.998%
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%
Total General Obligation Bonds
Original Principal
49,390 51,780 30,405 104,365 159,838 7,403 73,920 2,305 201,000 9,650 35,830 181,850 33,780 36,495 84,390 239,880 288,720 222,790 70,300 30,683 558,905 535,080 34,465 290,050 200,000 461,960 602,937 793,275 213,555 299,340 416,345 594,850 883,420
Outstanding at December 31, 2014
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
$ 10,998,150 $ 7,798,956
* Secured by alternate revenues.
Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2014
Outstanding at
Original December 31,
Principal 2014
General Obligation Certificates and Other Obligations:
** Building Acquisition Certificates (Limited Tax) Series 1997-4.4% to 5.4% $ 28,800 S 8,360
Modern Schools Across Chicago Program - Series 2007 A through K - 3.6% to 5.0% 356,005 241,095
Modern Schools Across Chicago Program-Series 2010 A and B-3.0% to 5.364% 150,115 132,835
** MRL Financing LLC Promissory Note - 5.0% to 7.5% 91,000 91,000
Total General Obligation Certificates and Other Obligations 625,920 473,290
Total General Obligation Debt 11,624,070 8,272,246
Tax Increment Allocation Bonds and Notes:
Near North Tax Increment - Series 1999 A and B - 5.084% to 6.89% 55,000 27,000
Goose Island Redevelopment Tax Increment - Series 2000 - 7.45% 16,800 9,585
Pilsen Redevelopment Project-Series 2014 A and B-0.95% to 5.0% 33,410 33,410
Total Tax Increment Allocation Bonds and Notes 105,210 69,995
Motor Fuel Tax and Sales Tax Revenue Bonds:
Motor Fuel Tax Revenue Bonds - Series 2008 A and B - 4.0% to 5.0% 66,635 63,835
Motor Fuel Tax Revenue Bonds - Series 2013 - 2.0% to 5.0% 105,895 102,780
Motor Fuel Tax Revenue Bonds - Riverwalk TIFIA Loan - 3.33% 17,168 17,168
Sales Tax Revenue Bonds-Series 1998-4.5% to 5.5% 125,000 8,885
Sales Tax Revenue Bonds - Series 2002 - 4.23% 116,595 111,715
Sales Tax Revenue Refunding Bonds - Series 2005 - 3.25% to 5.0% 142,825 97,215
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 897,915" 725,395
Total General Long-term Debt $ 12,627,195 $ 9,067,636
* Secured by alternate revenues.
** General Obligation Certificates and other obligations without property tax levy.
171
Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2014
Outstanding at Original December 31,
Principal 2014
Proprietary Fund Revenue Bonds: Water Revenue Bonds:
Refunding Series 1993-4.125% to 6.5% $ 49,880 $ 10,790
Series 1997 - 3.9% to 5.25% 277,911 10,849
Series 2000 - 2nd Lien - 3.867% 100,000 100,000
Series 2000 - 4.375% to 5.875% 156,819 15,858
Series 2001 - 3.0% to 5.75% 353,905 80,850
Series 2004 - 2nd Lien - 3.867% 500,000 355,575
Series 2006A-2nd Lien-4.5% to 5.0% 215,400 184,425
Series 2008 - 2nd Lien - 4.0% to 5.25% 549,915 470,035
Series2010-2nd Lien-2.0% to6.742% 313,580 300,355
Series 2012 - 2nd Lien - 4.0% to 5.0% 399,445 399,445
Series 2014 - 2nd Lien - 3.0% to 5.0% 367,925 367,925
Illinois Environmental Protection Agency Loan - 2.905% 3,605 1,723
Illinois Environmental Protection Agency Loan - 2.57% 2,642 1,669
Illinois Environmental Protection Agency Loan -1.25% 6,000 5,192
Illinois Environmental Protection Agency Loan - 0.00% 9,077 7,750
Illinois Environmental Protection Agency Loan -1.25% 1,528 1,423
Illinois Environmental Protection Agency Loan-1.25% 1,502 1,399
Illinois Environmental Protection Agency Loan -1.25% 6,092 5,673
Illinois Environmental Protection Agency Loan - 2.29% 6,542 6,413
Illinois Environmental Protection Agency Loan -1.93% 39,421 39,421
Illinois Environmental Protection Agency Loan -1.93% 15,000 15,000
Total Water Revenue Bonds 3,376,189 2,381,770
Chicago-O'Hare International Airport Bonds:
Chicago-O'Hare International Airport Revenue Bonds:
Refunding Series of 2003 A through C - 3rd Lien - 4.5% to 6.0% 986,310 517,855
Series of 2003 D through F-3rd Lien-2.125% to 5.5% 149,330 75,915
Series of 2004 A through H - 3rd Lien - 3.49% to 5.35% 385,045 214,930
Series of 2005 A and B-3rd Lien-5.0% to 5.25% 1,200,000 1,104,225
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 57,530
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
Total Chicago-O'Hare International Airport Revenue Bonds 7,623,535 6,406,710
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
172
Table 25 - Concluded CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2014
Outstanding at Original December 31,
Principal 2014
Proprietary Fund Revenue Bonds - Concluded:
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
Commercial Paper Notes - Variable Rate (.10% to .13% at December 31, 2014) 51,026 51,026
Total Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds 798,216 682,271
' Chicago Midway International Airport Revenue Bonds:
Series 1998 A, B and C - 4.3% to 5.5% 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 2,825,345 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
Series 2012 - 2nd Lien - 3.0% to 5.0% 276,470 266,705
Series 2014 - 2nd Lien - 3.0% to 5.0% 292,405 292,405
Illinois Environmental Protection Agency Loan - 2.5% 1,546 1,101
Illinois Environmental Protection Agency Loan - 0.00% 15,000 12,623
Illinois Environmental Protection Agency Loan -1.25% 17,564 16,763
Illinois Environmental Protection Agency Loan -1.25% 17,812 16,590
Illinois Environmental Protection Agency Loan -1.25% 15,000 15,000
Total Wastewater Transmission Revenue Bonds 1,878,590 1,602,175
Total Proprietary Fund Revenue Bonds $ 16,750,625 $ 12,828,001
NOTE: The balance outstanding at December 31, 2014 listed above for each year excluded amounts payable January 1, 2015.
173
Table 26
CITY OF CHICAGO, ILLINOIS POPULATION AND INCOME STATISTICS Last Ten Years
Year
2005
.
.
.
.
,
,
.
.
.
Population(l)
2,896,016 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
Median Age (2)
33.0 33.5 33.7 34.1 34.5 34.8 33.2 33.2 33.5 N/A
Number of Households (2)
1,045,282 1,040,000 1,033,328 1,032,746 1,037,069 1,045,666 1,048,222 1,054,488 1,062,029 N/A
City Employment
,198,929 ,228,075 ,249,238 ,237,856 ,171,841 ,116,830 ,120,402 ,144,896 ,153,725 ,264,234
Unemployment Rate (3)
7.0 %
5.2
5.7
6.4 10.0 10.1
9.3
8.9
8.3
5.7
Per Capita Income (4)
$
38,439 41,887 43,714 45,328 43,727 45,957 45,977 48,305 49,071 N/A (5)
Total Income
111,319,959,024 121,305,422,192 126,596,443,424 131,270,613,248 126,634,091,632 123,881,597,286 123,935,509,246 130,210,861,390 132,275,689,458 N/A (5)
NOTES:
Source: U.S. Census Bureau.
Source: World Business Chicago Website and Environmental System Research Institute data estimates. Data not available for 2014.
Source: Bureau of Labor Statistics 2014, 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 (in 2014 dollars).
(5) N/A means not available at time of publication.
* December 2014 data.
174
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
JPMorgan Chase & Co. (2)
Northwestern Memorial Healthcare
United Continental Holdings Inc
Walgreen Co
AT&T (3)
Presence Health
University of Illinois at Chicago
Abbott Laboratories
Accenture LLP
Northern Trust Corporation
Ford Motor Company
Bank of America NT & SA
American Airlines
UPS
ABN Amro
2014 (1)
Percentage of
1 2 3 4 5 6 7 8 9 10
Total City Employment
1.47 %
1.27
1.19
1.15
1.11
1.09
1.03
0.89
0.80
0.79
Number of
Employees
9,200 5,995 4,311
4,341 4,574 2,992 2,811 4,054 2,464 2,876
2005 (4)
Percentage of
Total City Rank Employment
0.87 %
0.56
4 3 7 9 6 10 8
0.41
0.41 0.43 0.28 0.26 0.38 0.23 0.27
NOTES:
Source: Reprinted with permission, Crain's Chicago Business [January 19, 2015], Crain Communications, Inc.
J. P. Morgan Chase formerly known as Banc One.
AT&T Inc. formerly known as SBC Ameritech. 2014 number of employees is a statewide number.
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.
175
Table 28
CITY OF CHICAGO, ILLINOIS
FULL TIME EQUIVALENT CITY OF CHICAGO EMPLOYEES BY FUNCTION Last Eight Years (See Note at the End of this Page)
Budgeted Full Time Equivalent
Positions
Function 2014 2013 2012 2011 2010 2009 2008 2007 2006
General
Government 3,759 3,729 3,856 4,363 4,401 4,419 5,112 5,195 5,214
Public Safety 21,139 21,068 21,040 22,716 22,912 22,954 23,313 23,397 23,345
Streets and
Sanitation 2,341 2,351 2,303 2,576 2,605 3,087 3,648 3,609 3,578
Transportation 1,171 932 929 980 1,022 718 819 829 862
Health 713 739 904 991 1,117 1,257 1,535 1,554 1,570
Cultural and
Recreational 1,245 1,215 1,153 1,207 1,213 1,318 1,596 1,608 1,620
Business-type
Activities 3,614 3,529 3,523 3,615 3,619 3,666 3,898 4,015 4,108
Total 33,982 33,563 33,708 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.
Beginning with fiscal year 2006, the City of Chicago will accumulate ten years of data.
176
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Table 29
CITY OF CHICAGO, ILLINOIS
OPERATING INDICATORS BY FUNCTION/DEPARTMENT Last Nine Years (See Note at the End of this Page)
Function/Program 2014 2013 2012 2011 2010 2009 2008 2007 2006
Police Physical
Arrests 129,166 143,618 145,390 152,740 167,355 181,254 196,621 221,915 227,576
Fire
Emergency
Responses (1) 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) 3,265 3,562 3,763 3,983 3,931 3,974 4,240 4,320 4,451
Cultural Volumes in
Library (2) 11,526,900 11,451,732 5,691,321 5,790,289 5,769,587 5,743,002 5,721,334 5,891,306 5,700,000
Water
Average Daily Consumption (Thousands of
Gallons) 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 that accounts for Administrative calls as well. (2) Beginning in 2013, Chicago Public Library utilizes new process to identify library holdings.
Table 30
CITY OF CHICAGO, ILLINOIS
CAPITAL ASSET STATISTICS BY FUNCTION
Last Nine Years (See Note at the End of this Page)
Function 2014 2013 2012 2011 2010 2009 2008 2007 2006
Police Stations 25 25 25 26 25 25 25 25 25
Fire Stations 104 104 104 104 103 103 101 102 102
Other Public Works
Streets (Miles) 4,116 4,116 4,116 4,091 3,775 3,775 3,775 3,775 3,775
Streetlights 327,613 327,613 279,668 278,788 261,019 259,699 285,989 192,511 190,000
Traffic Signals 3,035 3,035 3,035 2,960 2,960 2,960 2,960 2,727 2,795
Water Mains (Miles) 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 4,450 4,400 4,400 4,400 4,500 4,500 4,500
NOTE:
(1) Beginning with fiscal year 2006, the City of Chicago will accumulate ten years of data.
177
Table 31
CITY OF CHICAGO, ILLINOIS
INTEREST RATE SWAP COUNTERPARTY ENTITIES December 31, 2014
(Amounts are in Thousands of Dollars)
Associated Bond Issue
GO VRDB (Series 2007EFG)
GO VRDB (Series 2005D)
Sales Tax Revenue Refunding
Bonds (VRDB Series 2002)
Tax Increment Allocation Bonds
(Near North TIF, Series 1999A)
Chicago Midway International
Airport Revenue Bonds
(Series 2004C&D)
Wastewater Transmission Variable
Rate Revenue Bonds (Series 2008C)
Water Variable Rate Revenue
Refunding Bonds (Series 2004)
Water Variable Rate Revenue
Refunding Bonds (Series 2004)
Second Lien Water Revenue
Refunding Bonds (Series 2000)
GO VRDB (Series 20.03B)
Total ~S~
Counterparty Credit Rating Moody's/S&P
A3/A Baa2/A-Aa3/AA-
Baa1/A Aa3/A+ Aa2/AA-
A3/A
A3/A
A2/A
Aa3/A+
A2/A
Baa1/A Aa3/AA-
A3/A A2/A Aa3/A+
A2/A
Aa3/AA-
A2/A
Aa3/AA-Aa3/A+ Aa2/AA-A2/A
Counterparty Entity
Deutsche Bank (2) Morgan Stanley Wells Fargo
Goldman Sachs BMO (3) Bank of New York Mellon Deutsche Bank (2) Deutsche Bank PNC Bank
JP Morgan
Bank of America
Goldman Sachs Wells Fargo
Deutsche Bank (2) Bank of America JP Morgan
UBS
RBC
UBS
Wells Fargo JP Morgan Bank of New York Mellon PNC Bank
City ATE Level (1)
Baa3/BBB-Baa3/BBB-Baa1/BBB+
Baa3/BBB-Baa1/BBB+ Baa2/BBB Baa3/BBB-Baa3/BBB-Baa3/BBB-
Baa2/BBB
N/A
Baa1/BBB+ Baa2/BBB
Baa3/BBB-Baa1/BBB+ Baa1/BBB+
Baa1/BBB+
Baa1/BBB+
Baa1/BBB+
Baa1/BBB+ Baa3/BBB-Baa2/BBB Baa3/BBB-
Source: Survey of Derivative Instruments - Notional amount related to bonds maturing on January 1,2015 have been excluded because funds for their payment have been provided for. " Reflects Swap overlay agreement.
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 July 2014 the interest rate swap for the GO Variable Rate Demand Bonds (2007EFG and 2005D) and Wastewater Transmission Variable Rate Revenue Bonds (2008C) with Loop Financial Products I was transferred to Deutsche Bank.
In July 2014 the interest rate swap for the GO Variable Rate Demand Bonds (2005D) with Loop Financial Products III was transferred
178
Table 32
CITY OF CHICAGO, ILLINOIS
BANK FACILITIES
As of December 31, 2014
(Amounts are in Thousands of Dollars)
Bond Liquidity, Letters of Credit and Direct Purchase Facilities
Issue
G.O. Project & Refunding
G.O. Project & Refunding
G.O. Project & Refunding
G.O. Refunding
G.O. Refunding
G.O. Refunding
G.O. Project & Refunding
G.O. Project & Refunding
G.O.N.A. 21 Program
G.O.N.A. 21 Program
G.O.N.A. 21 Program
Midway 2nd Lien
Midway 2nd Lien
Midway 2nd Lien
Midway 2nd Lien
O'Hare 3rd Lien
O'Hare 3rd Lien
Sales Tax Revenue Refunding
TIF Near North
Wastewater 2nd Lien
Wastewater 2nd Lien
Wastewater 2nd Lien
Water 2nd Lien
Water 2nd Lien Rfdg
Water 2nd Lien Rfdg
Water 2nd Lien Rfdg
Series
2003 B-1 2003 B-2
B-3 2007F 2007E 2007G 2005 D-1 2005 D-2 2002 B-3 2002 B-4 2002 B-5
C-1 2004 C-2
D 2014 C
C 2005 D 2002 1999 A 2008 C-1 2008 C-2 2008 C-3 2000 2004-1 2004-2 2004-3
Principal Outstanding
96,375 48,195 48,195 80,000 100,000 20,000 111,395 111,395 103,350 51,675 51,675 58,225 68,550 13,900 124,710 140,600 100,000 112,245 31,400 116,115 116,115 100,000 100,000 157,565 157,565 40,445
Expiration or Termination
09/25/2017 09/25/2017 09/25/2017 12/31/2017 11/30/2015 11/30/2015 01/12/2018 01/12/2018 10/02/2015 10/02/2015 10/02/2015 11/25/2016 11/25/2016 11/25/2016 11/25/2017 08/15/2017 08/15/2017 12/31/2015 08/15/2016 12/01/2017 12/01/2017 12/01/2017 10/30/2017 11/05/2018 11/05/2018 11/05/2018
Bond Maturity Date
01/01/2034 01/01/2034 01/01/2034 01/01/2042 01/01/2042 01/01/2042 01/01/2040 01/01/2040 01/01/2037 01/01/2037 01/01/2037 01/01/2035 01/01/2035 01/01/2035 01/01/2035 01/01/2035 01/01/2035 01/01/2034 01/01/2019 01/01/2039 01/01/2039 01/01/2039 11/01/2030 11/01/2031 11/01/2031 11/01/2031
Bank
JPMorgan JPMorgan JPMorgan JPMorgan Barclays Barclays Bank of Montreal Northern Trust RBC Bank of New York Bank of New York Bank of Montreal
Wells Fargo Bank of Montreal JPMorgan Citibank Barclays JPMorgan Bank of New York PNC Bank US Bank Wells Fargo JPMorgan Bank of Tokyo State Street State Street
BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-
(2)
(2) BBB-BBB-BBB-BBB-BBB
(3) BBB-
N/A BBB BBB BBB BBB-BBB-BBB-BBB-
Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3
(2)
(2) Baa3 Baa3 Baa3 Baa3 Baa2
(3) Baa3
N/A Baa2 Baa2 Baa2 Baa3 Baa3 Baa3 Baa3
Fitch Moody's S&P
BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-
(2)
(2) BBB-BBB-BBB-BBB-BBB
(3) BBB-
N/A BBB BBB BBB BBB-BBB-BBB-BBB-
See next page.
Table 32 - Concluded
CITY OF CHICAGO, ILLINOIS
BANK FACILITIES
As of December 31, 2014
(Amounts are in Thousands of Dollars)
Commercial Paper (CP) Letters of Credit and Lines of Credit Providers
Ratings Thresholds(1>
Series
Issue
G. O. CP 2002A/B
G. O. CP 2002C/D
G. 0. Line of Credit 2013
G. 0. Line of Credit 2014
G. 0. Line of Credit 2014
G. 0. Line of Credit 2014
Midway CP 2003A-D
Midway CP 2003E-G
O'Hare CP 2005-A
O'Hare CP 2005-B
O'Hare CP 2005-C
O'Hare CP 2005-D
O'Hare CP 2005-E
129,160 93,220 75,000
200,000 100,000 200,000 100,000 100,000 200,000 85,000 65,000 75,000 50,000 50,000 50,000 50,000
Amount Expiration Borrowing Outstanding or Authority (Dec. 31,2014) Termination
31,019
20,007
05/08/2015 05/08/2015 05/08/2015 11/30/2015 02/20/2016 04/25/2016 07/12/2017 02/14/2015 09/30/2016 09/30/2016 09/30/2016 09/30/2016 09/30/2016
Bank
Wells Fargo BMO Harris Bank of America
Barclays Morgan Stanley JPMorgan JPMorgan
PNC JPMorgan Wells Fargo
PNC BMO/Harris BAML
N/A N/A BBB-BBB-BBB-BBB-BBB-BBB-BBB-N/A N/A N/A N/A
BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-BBB-
Fitch Moody's S&P
Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Baa3
Orange Line 2014 S 165,000 02/13/2015 N/A PNC BBB- Baa3 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 agreements with The Bank of New York Mellon provide that until February 15, 2015, the Ratings Threshold shall be "Baa3" by Moody's and "BBB-" by Fitch and S&P. After February 15, 2015, the Rating Threshold becomes "Baa2" by Moody's and "BBB" by Fitch and S&P. The agreements were subsequently amended in 2015 changing February 15, 2015 to October 2, 2015. On April 30, 2015, The Bank of New York Mellon entered into a participation agreement with JP Morgan for the full amount of the bonds.
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.
The Event of Default is triggered if the General Obligation rating falls below the threshold above by any of the rating agencies. A covenant to use reasonable efforts to replace the letter of credit within 30 days is triggered if the rating is below Baal or BBB+ by Moody's or S&P respectively.
The Letter of Credit amount varies up to a maximum $180.7 million.
180
SUPPLEMENT TO
CITY OF CHICAGO
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2014
Rahm Emanuel, Mayor
Carole L. Brown, Chief Financial Officer Daniel Widawsky, City Comptroller
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Department of Finance city of chicago
June 30, 2015
To the Honorable Mayor and Members ofthe City Council of the City of Chicago
Ladies and Gentlemen:
This report is a supplement to the Comprehensive Annual Financial Report of the City of Chicago for the year ended December 31, 2014.
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, 2014.
Respectfully submitted,
^C^niel Widawsky City Comptroller
121 NORTH LASALLE STREET, SUITE 700. CHICAGO. ILLINOIS G0GO2
SUPPLEMENT TO CITY OF CHICAGO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2014
Table of Contents
Letter of Transmittal 1
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 - Motor Fuel Tax Fund Statement of
Cash Receipts and Expenditures 31
Schedule 4 Special Revenue Funds - Federal, State and Local Grants
Combining Balance Sheet 32
Schedule 5 Special Revenue Funds - Federal, State and Local Grants
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance 34
m
m
ti i i i 1 i i i t f f i
I Schedule 1
| CITY OF CHICAGO, ILLINOIS
. GENERAL FUND
» SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
| Year Ended December 31, 2014
I Original Final
I Budget Budget Actual|109|GENERAL GOVERNMENT
OFFICE OF THE MAYOR - 01 -
.0000-Personnel Services $ 5,511,957 $ 5,511,957 $ 5,840,782
0100-Contractual Services 266,942 266,942 246,104
.0200-Travel 24,832 24,832 22,670
.0300-Commodities 48,500 48,500 34,725
Total 5,852,231 5,852,231 6,144,281
OFFICE OF THE INSPECTOR GENERAL - 03 -
.0000-Personnel Services 2,254,339 2,254,339 1,869,300
.0100-Contractual Services 251,797 251,797 207,572
.0200-Travel 4,433 4,433 4,164
.0300-Commodities 18,257 18,257 2,344
.0700-Contingencies 12,784 12,784 12,784
Total 2,541,610 2,541,610 2,096,164
OFFICE OF BUDGET AND MANAGEMENT - 05 -
.0000-Personnel Services 1,638,040 1,638,040 2,334,170
.0100-Contractual Services 49,295 49,295 34,117
.0200-Travel 1,000 1,000
.0300-Commodities 5,800 5,800 3,621
Total 1,694,135 1,694,135 2,371,908
DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -
.0000-Personnel Services 7,489,468 7,489,468 5,286,264
.0100-Contractual Services 18,056,453 18,056,453 17,847,965
.0200-Travel 6,000 6,000 1,201
.0300-Commodities 27,800 27,800 13,357
Total 25,579,721 25,579,721 23,148,787
CITY COUNCIL COMMITTEES CITY COUNCIL - 15-
2005.0000-Personnel Services 15,259,891 15,259,891 14,939,975
2005.0100-Contractual Services 70,150 70,150 66,614
2005.0200-Travel 1,000 1,000
2005.0700-Contingencies 43,000 43,000 42,999
2005.0982-Order of The City Council 1,000 1,000
2005.9008-Aldermanic Expense Allowance 4,850,000 4,850,000 4,415,633
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 92,072 92,072 82,687
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
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 20,321,113 20,321,113 19,547,908
COMMITTEE ON FINANCE - 15 -
2010.0000-Personnel Services
2010.0100-Contractual Services
2010.0200-Travel
2010.0300-Commodities
2010.0700-Contingencies
The Payment of Legal Fees Pursuant to Sec. 2-152-170 ofthe 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
1,731,752 1,731,752 1,677,551
138,400 138,400 137,862
8,000 8,000
51,500 51,500 49,147
100 100
50,000 50,000
50,000 50,000 152
92,500 92,500 92,500
2,122,252 2,122,252 1,957,212
COMMITTEE ON HISTORICAL LANDMARK PRESERVATION-15-
2012.0000-Personnel Services 258,924 258,924
2012.0100-Contingencies 25,000 25,000
Total 283,924 283,924
LEGISLATIVE INSPECTOR GENERAL
2015.0100-Contractual Services 354,000 354,000 359,583
Total 354,000 354,000 359,583
COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS - 15-
2214.0000-Personnel Services
2214.0100-Contractual Services
2214.0300-Commodities
2214.0400-Equipment
468,750 468,750 468,750
15,000 15,000 14,915
12,000 12,000 11,995
9,500 9,500 9,495
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued CITY COUNCIL COMMITTEES - Continued
COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS -15 - Concluded
2214.0700-Contingencies $ 15,000 $ 15,000 $ 15,000
Total 520,250 520,250 520,155
COMMITTEE ON AVIATION -15 -
2220.0000-Personnel Services 102,843 102,843 102,439
2220.0100-Contractual Services 200 200
2220.0300-Commodities 500 500
2220.0700-Contingencies 750 750 -
Total 104,293 104,293 102,439
COMMITTEE ON LICENSE AND CONSUMER PROTECTION-15-
2225.0000-Personnel Services
2225.0100-Contractual Services
2225.0300-Commodities
Total
COMMITTEE ON POLICE AND FIRE -15 -
2235.0000-Personnel Services
2235.0100-Contractual Services
2235.0300-Commodities
2235.0700-Contingencies
Total
COMMITTEE ON HEALTH - 15 -
2240.0000-Personnel Services
2240.0100-Contractual Services
2240.0300-Commodities
2240.0700-Contingencies
Total
102,081 102,081 133,870
17,500 17,500 13,408
500 500 4,606
120,081 120,081 151,884
119,289 119,289 101,506
1,000 1,000 949
1,000 1,000 1,030
500 500 -
121,789 121,789 103,485
87,670 87,670 96,817
200 200
800 800 297
500 500 -
89,170 89,170 97,114
COMMITTEE ON COMMITTEES, RULES AND ETHICS-15-
2245.0000-Personnel Services 100,008 100,008 101,900
2245.0100-Contractual Services 40,000 40,000 39,995
2245.0300-Commodities 500 500 1,016
Total - 140,508 140,508 142,911
COMMITTEE ON ECONOMIC AND
CAPITAL DEVELOPMENT - 15 -
2255.0000-Personnel Services 107,635 104,635 107,082
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY COUNCIL COMMITTEES - Continued
COMMITTEE ON ECONOMIC AND CAPITAL DEVELOPMENT -15 - Concluded
2255.0100-Contractual Services $ 1,000 $ 1,000 $
2255.0300-Commodities 500 3,500 1,800
2255.0700-Contingencies 1,000 1,000 771
Total 110,135 110,135 109,653
COMMITTEE ON EDUCATION - 15 2260.0000-Personnel Services.. 2260.0100-Contractual Services
2260.0700-Contingencies
Total
COMMITTEE ON ZONING - 15 -2275.0000-Personnel Services.. 2275.0100-Contractual Services
2275.0300-Commodities
Total
200,609 3,000 2,000
205,609
305,134 5,300 74,700
385,134
200,609 3,000 2,000
205,609
305,134 5,300 74,700
385,134
175,146
175,146
310,298 2,904 96,042 409,244
COMMITTEE ON HOUSING AND REAL ESTATE -15 -
2280.0000-Personnel Services
2280.0100-Contractual Services
2280.0300-Commodities
2280.0700-Contingencies
Total
192,406 192,406 204,276
1,550 1,550 1,533
400 400 400
2,150 2,150 1,899
196,506 196,506 208,108
COMMITTEE ON HUMAN RELATIONS -15 -
2286.0000-Personnel Services
2286.0300-Commodities
Total
COMMITTEE ON HUMAN RELATIONS - 15 -
2290.0000-Personnel Services
2290.0100-Contractual Services
2290.0300-Commodities
Total
CITY COUNCIL LEGISLATIVE REFERENCE BUREAU-15-
2295.0000-Personnel Services
2295.0100-Contractual Services
2295.0300-Commodities
Total
88,098 88,098 71,004
1,000 1,000 825
89,098 89,098 71,829
479,312 479,312 443,203
30,000 28,000 1,015
5,000 7,000 6,652
514,312 514,312 450,870
282,081 282,081 219,664
67,000 67,000 55,269
4,000 4,000 370
353,081 353,081 275,303
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued CITY COUNCIL COMMITTEES - Concluded
TOTAL CITY COUNCIL COMMITTEES .. $ 26,031,255 $ 26,031,255 $ 24,682,844
CITY CLERK - 25 -
.0000-Personnel Services 2,414,467
.0100-Contractual Services 533,865
.0300-Commodities 48,836
Total 2,997,168
DEPARTMENT OF FINANCE -CITY COMPTROLLER - 27 -
2011.0000-Personnel Services 2,930,628
2011.0100-Contractual Services 312,899
2011.0200-Travel 1,800
2011.0300-Commodities 27,000
Total 3,272,327
DEPARTMENT OF FINANCE -Accounting and Financial Reporting - 27 -
2012.0000-Personnel Services 3,277,809
2012.0100-Contractual Services 801,894
2012.0200-Travel 3,825
2012.0300-Commodities 20,600
Total 4,104,128
DEPARTMENT OF FINANCE -Financial Strategy and Operations - 27 -
2015.0000-Personnel Services 5,510,688
2015.0100-Contractual Services 997,768
2015.0200-Travel 12,088
2015.0300-Commodities 82,900
Total 6,603,444
DEPARTMENT OF FINANCE -Revenue Services and Operations - 27 -
2020.0000-Personnel Services
2020.0100-Contractual Services
2020.0200-Travel
2020.0300-Commodities
Total
TOTAL FINANCE 64,394,063
2,414,467 533,865 48,836
2,997,168
2,930,628 312,899 1,800 27,000
3,272,327
3,277,809 801,894 3,825 20,600
4,104,128
5,510,688 997,768 12,088 82,900
6,603,444
21,946,565 28,173,861 17,676 276,062
50,414,164
64,394,063
2,236,970 533,789 48,626
2,819,385
2,683,164 260,968 67 10,221
2,954,420
3,095,633 619,835 1,730 16,399
3,733,597
5,106,134 561,540 10,504 21,224
5,699,402
18,792,815 24,624,373 1,740 180,087
43,599,015
55,986,434
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY TREASURER - 28-
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities
Total
DEPARTMENT OF ADMINISTRATIVE HEARINGS - 30 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities
Total
DEPARTMENT OF LAW - 31 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities
Total
DEPARTMENT OF HUMAN RESOURCES - 33 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities
.0900-Specific Purpose-General
Total
DEPARTMENT OF PROCUREMENT SERVICES - 35 -
.0000-Personnel Services
.0100-Contractual Services
.0200-Travel
.0300-Commodities
Total
$ 1,893,038 $ 1,893,038 $ 1,829,106
435,729 435,729 321,335
975 975 69
6,500 6,500 3,752
2,336,242 2,336,242 2,154,262
2,891,114 2,891,114 2,823,076
4,907,446 4,907,446 4,529,203
2,000 2,000 1,074
35,108 35,108 29,904
7,835,668 7,835,668 7,383,257
24,543,132 24,543,132 24,828,651
3,025,745 3,025,745 2,875,461
115,343 115,343 79,563
150,021 150,021 140,476
27,834,241 27,834,241 27,924,151
4,588,430 4,588,430 4,388,436
495,004 495,004 443,519
2,210 2,210 1,944
33,201 33,201 10,370
170,000 170,000 168,255
5,288,845 5,288,845 5,012,524
5,075,052 5,075,052 4,712,298
1,164,428 1,164,428 799,891
5,190 5,190 4,481
21,950 21,950 8,262
6,266,620 6,266,620 5,524,932
|1010|
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Budget
Final Budget
GENERAL GOVERNMENT - Continued
DEPARTMENT OF FLEET AND FACILITIES MANAGEMENT - 38 -
BUREAU OF FINANCE AND ADMINISTRATION - 38 -
2103.0000-Personnel Services $
2103.0100-Contractual Services
2103.0200-Travel
2103.0300-Commodities
Total _
BUREAU OF FACILITY MANAGEMENT - 38 -
2126.0000-Personnel Services
2126.0100-Contractual Services
2126.0200-Travel
2126.0300-Commodities
Total _
BUREAU OF ENERGY AND UTILITY MANAGEMENT - 38 -
2131.0000-Personnel Services
2131.0100-Contractual Services
2131.0200-Travel
2131.0300-Commodities
2131.9000-Specific Purpose-General
2131.9100-Specific Purpose-As Specified
Total _
FLEET OPERATIONS - 38 -
2140.0000-Personnel Services
2140.0100-Contractual Services
2140.0300-Travel
' 2140.0300-Commodities
Total _
TOTAL DEPARTMENT OF FLEET AND _
FACILITIES MANAGEMENT
2,797,550 700,345 250 58,000
3,556,145
29,452,913 22,951,111 35,000 1,889,822
54,328,846
2,638,720 14,760,691 2,214 45,906,628 80,535 1,453,341 64,842,129
31,053,409 13,267,424 10,000 11,412,666 55,743,499
178,470,619
2,797,550 700,345 250 58,000
3,556,145
29,452,913 22,951,111 35,000 1,889,822
54,328,846
2,638,720 14,760,691 2,214 45,906,628 80,535 1,453,341 64,842,129
31,053,409 13,267,424 10,000 11,412,666 55,743,499
178,470,619
2,612,393 670,677 13 51,387
3,334,470
26,240,864 22,535,331 16,535 1,808,358
50,601,088
2,316,373 14,307,875
42,194,752 1,344 1,281,558 60,101,902
29,778,964 12,499,765 2,397 11,387,145 53,668,271
167,705,731
|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, 2014
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
BOARD OF ELECTION COMMISSIONERS -ELECTION AND ADMINISTRATION DIVISION - 39 -
2005.0000-Personnel Services $ 8,425,919 $ 8,425,919 $ 8,316,313
2005.0100-Contractual Services 3,131,595 3,131,595 3,125,974
2005.0200-Travel 5,402 5,402 5,502
2005.0300-Commodities ! 312,631 312,631 312,533
Total 11,875,547 11,875,547 11,760,322
COMMISSION ON HUMAN RELATIONS - 45 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities
Total
1,031,147 1,031,147 912,958
77,265 77,265 50,654
1,766 1,766 515
4,778 4,778 1,243
1,114,956 1,114,956 965,370
MAYOR'S OFFICE FOR PEOPLE WITH DISABILITIES - 48 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities
9438-For Services Provided by the Department of
Fleet and Facilities Management
Total
DEPARTMENT OF FAMILY AND SUPPORT SERVICES - 50 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities
.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
972,879 150,939 13,446 8,970
40,495
1,186,729
1,994,476 1,015,007 28,292 17,085 11,000,000 2,000,000 1,540,979 14,451,803 13,322,801 900,000 1,000,000 6,482,676
53,753,119
972,879 150,939 13,446 8,970
40,495
1,186,729.
1,994,476 1,015,007 28,292 17,085 11,000,000 2,000,000 1,540,979 14,451,803 13,322,801 900,000 1,000,000 6,482,676
53,753,119
964,258 125,290 7,258 6,068
40,178 1,143,052
1,989,195 820,650 17,167 9,546 6,860,065 1,531,058 1,540,979 14,380,560 13,082,889 900,000 1,000,000 6,445,103 48,577,212
10
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original - Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued "
DEPARTMENT OF PLANNING AND DEVELOPMENT - 54 -
2005.0000-Personnel Services $
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities
2005.0400-Equipment
.0938-For the Funding of the City's Contribution to
the Low Income Housing Trust Fund
.9110-Property Management,
Maintenance and Security
.9183-Foreclosure Prevention Program
.9211-Single-Family Troubled Building Initiative
.9212-Multi-Family Troubled Building Initiative
.9213-Affordable Housing Density Program
.9224-Micro Market Recovery Program
.9256-Urban Homesteading
Total
9,534,110 3,756,803
9,464 38,664
6,000
3,500,000
155,000 200,000 150,000 150,000 8,600,000 772,700 300,000
27,172,741
9,534,110 3,756,803 9,464 38,664 6,000
3,500,000
155,000 200,000 150,000 150,000 8,600,000 772,700 300,000
27,172,741
9,502,219 3,414,571
6,904 11,216
3,799
3,500,000
72,761 200,000 150,000 150,000 8,600,000 771,975 261,815 26,645,260
POLICE BOARD - 55 -
2005.0000-Personnel Services 329,136 329,136 318,436
2005.0100-Contractual Services 103,347 103,347 87,993
2005.0200-Travel 500 500 37
2005.0300-Commodities 1,100 1,100 -_
Total 434,083 434,083 406,466
LICENSE APPEAL COMMISSION - 77 -
2005.0000-Personnel Services 65,436 65,436 65,559
2005.0100-Contractual Services 102,403 102,403 89,390
2005.0300-Commodities 456 456 425
Total 168,295 168,295 155,374
BOARD OF ETHICS - 78 -
2005.0000-Personnel Services 681,370 681,370 743,535
2005.0100-Contractual Services 85,655 85,655 49,649
2005.0200-Travel 5,148 5,148 2,629
2005.0300-Commodities 3,210 3,210 247_
Total 775,383 775,383 796,060
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services 437,994,226 437,994,226 398,958,825
2005.0100-Contractual Services 76,846,312 76,846,312 55,700,577
2005.0300-Commodities and Materials 4,959,372 4,959,372 1,001,454
,0912-For Payment of Bonds 6,000,000 6,000,000 6,000,000
.0931-For Payment of Non-Tort Judgements 6,377,742 6,377,742 18,337,704
11
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2014
Original Final
Budget Budget Actual
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 $
.0938- For the City's Contribution to Low Income
Housing Trust
.0939-Reimbursement of Condominium and
Cooperative Garbage Collection Fees
.0991-To Provide Matching and Supplementary
Cooperative Garbage Collection Fees
.9027-For the City Contribution to Social Security Tax
.9076-City's Contribution to Medicare Tax
.9121-For Payment of Costs Associated with Lobbyist
Activities on Behalf of the City of Chicago
.9165-For Expenses Related to the Data Center
.9176-West Nile Virus Program
.9180-For World Business Chicago Program
.9257-Chicago Office of Public Engagement
.9258-Manufacturing Innovation Project
.9635-To Reimburse Midway Fund for Fire
Department Salaries
.9636-To Reimburse Midway Fund for Fire
Department Benefits
.9638-For Corporate Subsidy of Chicago Public
Library
Total
200,000 $
3,304,633
4,000,000
4,456,141 1,041,787 38,046,840
480,000 2,004,559
425,000 1,000,000
740,264
390,370
2,955,807 1,646,978 5,369,000
598,239,031
200,000 $
3,304,633
4,000,000
4,456,141 1,041,787 38,046,840
480,000 2,004,559
425,000 1,000,000
740,264
390,370
2,955,807 1,646,978 5,369,000
598,239,031
199,231
3,304,633
3,849,236
2,095,750 418,069 31,514,318
318,535 2,004,559
264,222 1,000,000
201,089 40,868
2,955,807
1,646,978
5,000,000
534,811,855
TOTAL GENERAL GOVERNMENT 1,051,842,302 1,051,842,302 958,215,631
HEALTH
DEPARTMENT OF PUBLIC HEALTH - 41 -
.0000-Personnel Services 11,713,974 11,713,974 10,300,734
.0100-Contractual Services 11,006,002 11,006,002 10,707,736
.0200-Travel 35,747 35,747 19,393
.0300-Commodities 1,073,065 1,073,065 966,586
.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
.9067-For Physical Exams 6,120 6,120 1,326
.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 3,605,876
Total 28,127,328 28,127,328 26,229,151
12
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2014
Original Budget
Final Budget
HEALTH - Concluded
TOTAL HEALTH $ 28,127,328 $ 28,127,328 $ 26,229,151
PUBLIC SAFETY
INDEPENDENT POLICE REVIEW AUTHORITY - 56 -
2005.0000-Personnel Services 7,973,865
2005.0100-Contractual Services 273,180
2005.0200-Travel 3,626
2005.0300-Commodities 42,836
Total 8,293,507
DEPARTMENT OF POLICE - 57 -
1005.0000-Personnel Services 1,241,485,785
1005.0100-Contractual Services - 6,486,699
1005.0200-Travel 310,690
1005.0300-Commodities 3,417,924
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 1,291,677,811
7,973,865 273,180 3,626 42,836
8,293,507
1,241,485,785 6,486,699 310,690 3,417,924 36,250
19,844,350
19,000,000 1,096,113 1,291,677,811
7,394,595 181,859 2,224 26,016
7,604,694
1,241,577,821 5,773,190 150,694 2,869,928 10,800
34,879,849
18,401,848 1,078,516 1,304,742,646
OFFICE OF EMERGENCY MANAGEMENT AND COMMUNICATIONS - 58 -
.0000-Personnel Services 60,236,715 60,236,715 62,638,854
.0100-Contractual Services 17,123,826 17,123,826 15,808,095
.0200-Travel 105,950 105,950 107,778
.0300-Commodities 1,621,656 1,621,656 1,475,910
.0401-Tools Less Than or Equal to $100/Unit 45,000 45,000 42,039
Total 79,133,147 79,133,147 80,072,676
FIRE DEPARTMENT - 59-
.0000-Personnel Services 515,556,418 515,556,418 580,695,303
.0100-Contractual Services 6,491,146 6,491,146 6,001,667
.0200-Travel 52,400 52,400 31,725
.0300-Commodities 2,744,759 2,744,759 2,491,686
13
I
I
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2014
Original Budget
Final Budget
PUBLIC SAFETY - Concluded
FIRE DEPARTMENT - 59 - Concluded
.0400-Equipment $ 118,000 $
.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 310,000 _
Total 536,974,723 _
DEPARTMENT OF BUILDINGS - 67 -
.0000-Personnel Services 16,680,592
.0100-Contractual Services 3,485,188
.0200-Travel 156,250
.0300-Commodities 43,202
.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 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 20,815,232 _
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
.0000-Personnel Services 12,772,944
.0100-Contractual Services 4,841,233
.0200-Travel 57,074
.0300-Commodities 140,234
.9206-Grant for Chicago Micro-Lending Initiative 500,000 _
Total 18,311,485 _
COMMISSION ON ANIMAL CARE AND CONTROL - 73 -
.0000-Personnel Services 4,213,194
.0100-Contractual Services 709,774
.0200-Travel 480
.0300-Commodities 427,301 _
Total 5,350,749 _
TOTAL PUBLIC SAFETY 1,960,556,654
109,986
6,643,984
118,000 $
6,941,802 333,259
2,702,000
603,249,412
9,000,000 310,000
16,470,089 2,956,753 136,658 24,956
536,974,723
4,599
16,680,592 3,485,188 156,250 43,202
300,000
147,991
19,741,046
150,000 20,815,232
12,173,803 4,255,524 14,670 72,298 498,434
17,014,729
4,186,348 649,951
399,603 5,235,902
12,772,944 4,841,233 57,074 140,234 500,000 18,311,485
4,213,194 709,774 480 427,301
5,350,749
1,960,556,654 2,037,661,105
14
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
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
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
2006.0440-Machinery and Equipment
Total _
BUREAU OF SANITATION - 81 -
2020.0000-Personnel Services
2020.0100-Contractual Services
2020.0200-Travel
2020.0300-Commodities
2020.0400-Equipment _
Total _
BUREAU OF STREET OPERATIONS - 81 -
2045.0000-Personnel Services
2045.0100-Contractual Services
2045.0200-Travel
2045.0300-Commodities
2045.0400-Equipment _
Total _
BUREAU OF FORESTRY - 81 -
2060.0000-Personnel Services
2060.0100-Contractual Services
2060.0200-Travel
2060.0300-Commodities
2060.0400-Equipment
Total _
TOTAL STREETS AND SANITATION
1,227,337 226,780 500 8,800
540,000
2,003,417
4,455,148 47,328 600 9,600 100
4,512,776
103,794,779 51,111,077 1,500 220,141 113,512 155,241,009
17,983,046 2,227,711 100 188,683 27,580 20,427,120
12,364,813 1,743,160 32,250 107,344 13,780 14,261,347
196,445,669
1,227,337 $ 226,780 500 8,800
540,000
2,003,417
4,455,148 47,328 600 9,600 100
4,512,776
103,794,779 51,111,077 1,500 220,141 113,512 155,241,009
17,983,046 2,227,711 100 188,683 27,580 20,427,120
12,364,813 1,743,160 32,250 107,344 13,780 14,261,347
196,445,669
1,068,350 216,834 190 6,911
59,677
1,351,962
3,734,951 28,739
6,893
3,770,583
98,066,002 51,047,342
188,520 92,732
149,394,596
18,615,950 2,085,661
170,573 23,692 20,895,876
12,766,467 1,634,846 2,295 92,250
224
14,496,082
189,909,099
15
I
Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2014
Original Budget
Final Budget
TRANSPORTATION
OFFICE OF THE COMMISSIONER - 84 -
2105.0000-Personnel Services $
2105.0100-Contractual Services
2105.0200-Travel
2105.0300-Commodities
2105.0931-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 _
DIVISION OF ADMINISTRATION - 84 -
2115.0000-Personnel Services
2115.0100-Contractual Services
2115.0200-Travel
2115.0300-Commodities :
Total _
DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -
2135.0000-Personnel Services
2135.0100-Contractual Services
2135.0200-Travel
2135.0300-Commodities _
Total _
DIVISION OF PROJECT DEVELOPMENT - 84 -
2145.0000-Personnel Services
2145.0100-Contractual Services
2145.0200-Travel
2145.0300-Commodities
Improvements to Alleys
Ex-Offender/Re-Entry Initiatives _
Total _
DIVISION OF ELECTRICAL OPERATIONS - 84 -
2150.0000-Personnel Services
2150.0100-Contractual Services
2150.0200-Travel
2150.0300-Commodities _
Total
1,136,646 262,600 1,800 6,500
1,890,000
3,297,546
5,077,985 309,750 1,300 43,100
5,432,135
885,219 14,345,560 300 14,992
15,246,071
3,589,388 515,004 9,000 31,130 1,500 250,000
4,396,022
9,991,305 573,944 43,600 570,006
11,178,855
1,136,646 262,600 1,800 6,500
1,890,000
3,297,546
5,077,985
309,750
1,300
43,100
5,432,135
885,219 14,345,560 300 14,992
15,246,071
3,589,388 515,004 9,000 31,130 1,500 250,000
4,396,022
9,991,305 573,944 43,600 570,006
11,178,855
1,100,324 213,776 696 5,870
(223,813)
1,096,853
4,406,871 279,243 231 29,487
4,715,832
823,025 14,341,668
11,719
15,176,412
3,571,274 450,260 8,093 19,229 469 250,000
4,299,325
8,968,689 529,496 15,796 528,101
10,042,082
16
Schedule 1 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final
Budget Budget Actual
TRANSPORTATION - Concluded
DIVISION OF IN-HOUSE CONSTRUCTION - 84 -
2155.0000-Personnel Services $ 10,709,571 $ 10,709,571 $ 11,055,933
2155.0100-Contractual Services 308,112 308,112 267,013
2155.0200-Travel 11,400 11,400 1,057
2155.0300-Commodities 278,750 278,750 258,482
2155.0400-Equipment ' 14,325 14,325 14,145
Total 11,322,158 11,322,158 11,596,630
TOTAL TRANSPORTATION 50,872,787 50,872,787 46,927,134
PRINCIPAL RETIREMENT
2005.0100-Certificates of Participation 1,830,000 1,830,000 1,829,996
TOTAL PRINCIPAL RETIREMENT 1,830,000 1,830,000 1,829,996
INTEREST AND OTHER FISCAL CHARGES
2005.9540-Certificates of Participation 550,260 550,260 550,259
TOTAL INTEREST AND OTHER
FISCAL CHARGES 550,260 550,260 550,259
TOTAL GENERAL FUND $ 3,290,225,000 $ 3,290,225,000 $ 3,261,322,375
17
I
Schedule 2
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2014
Original Budget
Final Budget
VEHICLE TAX FUND
GENERAL GOVERNMENT
CITY COUNCIL COMMITTEES -15 •
COMMITTEE ON PEDESTRIAN AND TRAFFIC SAFETY
2230.0000-Personnel Services $ 416,667
2230.9000-General Office Expenses 16,387
Total 433,054
COMMITTEE ON TRAFFIC CONTROL AND SAFETY
2265.0000-Personnel Services 210,000
2265.0300-Commodities 5,000
Total 215,000
TOTAL CITY COUNCIL COMMITTEES 648,054
CITY CLERK - 25 -
.0000-Personnel Services 3,991,659
.0100-Contractual Services 2,430,116
.0200-Travel 33,250
.0300-Commodities 512,150
.9400-Specific Purpose-General 36,500
Total 7,003,675
DEPARTMENT OF FINANCE - 27 -
2015.0000-Personnel Services 417,297
Total 417,297
DEPARTMENT OF FINANCE - 27 -
2020.0000-Personnel Services 413,435
2020.0100-Contractual Services 5,600
2020.0300-Commodities 396_
Total 419,431
TOTAL DEPARTMENT OF FINANCE 836,728
DEPARTMENT OF LAW - 31 -
.0000-Personnel Services 1,145,888
.0100-Contractual Services 93,248
.0200-Travel 7,758
.0300-Commodities 6,818
.9400-Specific Purpose-General 709_
Total 1,254,421
416,667 16,387
433,054
164,976 50,024
215,000
648,054
3,991,659 2,430,116 33,250 512,150 36,500
7,003,675
417,297
417,297
413,435 5,600 396
419,431
836,728
1,145,888 93,248 7,758 6,818 709
1,254,421
412,042 27,685
439,727
158,365 53,645
212,010
651,737
3,687,314 2,428,710 6,356 508,206 36,500
6,667,086
417,996
417,996
422,214
422,214
840,210
1,015,988 76,748 5,617 6,405 709
1,105,467
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, 2014
Original Budget
Final Budget
VEHICLE TAX FUND - Continued
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -
2126.0100-Contractual Services $
2126.0300-Commodities
2131.0100-Contractual Services
2131.0300-Commodities
7 ota1 _
DEPARTMENT OF BUILDINGS - 67 -
.0000-Personnel Services
.0100-Contractual Services
.0300-Commodities
Total '. _
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services
2005.0100-Contractual Services
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:
To Be Expended Under the Direction of the Budget Director
2005.9027-City's Contribution to Social Security Tax
2005.9076-City's Contribution to Medicare Tax
2005.9610-To Reimburse Corporate Fund for Provision for Pension .. 2005.9633-To Reimburse Corporate Fund for Expenses for
Municipal Services Chargeable to Vehicle Fund
Total ~
TOTAL GENERAL GOVERNMENT _
STREETS AND SANITATION
685,938 28,500 1,628,313 7,561,060
9,903,811
454,928 87,800 3,008
545,736
26,381,977 4,396,253
2,000 375,000
765,000
488,816 24,162 1,024,803 6,944,747
13,466,000
53,868,758
74,061,183
685,938 28,500 1,628,313 7,561,060
9,903,811
454,928 87,800 3,008
545,736
26,381,977 4,396,253
2,000 375,000
765,000
488,816 24,162 1,024,803 6,944,747
13,466,000
53,868,758
74,061,183
626,375 26,768 1,602,546 7,561,060 9,816,749
156,743 51,948 702 209,393
26,440,943 4,446,408
300 374,845
760,315
448,816 24,162 1,024,803 6,944,747
13,466,000 53,931,339
73,221,981
BUREAU OF SANITATION - 81 -
2020.0000-Personnel Services 5,637,009 5,637,009 6,386,344
2020.0100-Contractual Services 2,836,015 2,836,015 2,775,495
2020.0300-Commodities and Materials 18,700 18,700 5,118
2020.0400-Equipment 28,640 28,640 -_
Total 8,520,364 8,520,364 9,166,957
19
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2014
Original Budget
Final Budget
VEHICLE TAX FUND - Continued
STREETS AND SANITATION - Concluded
BUREAU OF STREET OPERATIONS - 81 -
2045.0000-Personnel Services $
2045.0100-Contractual Services
2045.0200-Travel
2045.0300-Commodities
2045.0400-Equipment
2045.9400-Specific Purpose-General _
Total _
BUREAU OF TRAFFIC SERVICES - 81 -
2070.0000-Personnel Services
2070.0100-Contractual Services
2070.0300-Commodities
2070.0989-Refunds for Cancelled Voucher Warrants and Payroll Checks and for Refunding Duplicate Payments and Payments
Made in Error
2070.0992-For Tow Storage Refund
2070.9400-Specific Purpose-General _
Total _
TOTAL STREETS AND SANITATION _
TRANSPORTATION
3,543,214 2,260,588 100 347,720 35,500 6,000
6,193,122
13,889,125 8,992,948 277,967
700,000 97,000 41,350
23,998,390
38,711,876
3,543,214 2,260,588 100 347,720 35,500 6,000
6,193,122
13,889,125 8,992,948 277,967
700,000 97,000 41,350
23,998,390
38,711,876
3,026,873 2,120,032
321,497 31,622 6,000
5,506,024
13,104,800 8,127,658 229,387
699,070 69,245 41,350
22,271,510
36,944,491
DIVISION OF ENGINEERING - 84 -
2125.0000-Personnel Services
2125.0100-Contractual Services
2125.0200-Travel
2125.0300-Commodities
Total
DIVISION OF PROJECT DEVELOPMENT - 84 -
2135.0000-Personnel Services
2135.0100-Contractual Services
2135.0200-Travel
2135.0300-Commodities
2135.9400-Specific Purpose-General
Total
DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -
2145.0000-Personnel Services
2145.0100-Contractual Services
2145.0200-Travel
6,653,884 737,042 44,378 37,606
7,472,910
6,931,764 711,185 135,634 666,785 4,000
8,449,368
639,653 695,150 2,200
6,653,884 737,042 44,378 37,606
7,472,910
6,931,764 711,185 135,634 666,785 4,000
8,449,368
639,653 695,150 2,200
6,269,425 641,204 45,765 30,739
6,987,133
5,812,768 608,289 67,551 601,520 4,000
7,094,128
547,117 650,569 10
20
i
I
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final Actual
Budget Budget
VEHICLE TAX FUND - Concluded
TRANSPORTATION - Concluded
DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 - Concluded
2145.0300-Commodities
Total
DIVISION OF ELECTRICAL OPERATIONS - 84 -
2150.0000-Personnel Services
2150.0100-Contractual Services
2150.0200-Travel
2150.0300-Commodities
2150.0400-Equipment
Total
$ 14,300 $ 14,300 $ 2510
1,351,303 1,351,303 1,200,206
13,930,140 13,930,140 12,265,489
1,186,849 1,186,849 1,175,645
107,560 107,560 127,456
748,800 748,800 693,435
4,450 4^450 3595
15,977,799 15,977,799 14,265,620
BUREAU OF IN-HOUSE CONSTRUCTION - 84 -
2155.0000-Personnel Services
2155.0100-Contractual Services
2155.0200-Travel
2155.0300-Commodities
2155.0400-Equipment
2155.9064-For the Restoration of Curbs, Gutters,
Sidewalks and Pavement
2155.9458-For Services Provided by
the Office of Emergency Management and Communications . 2155.9481-For Services Provided by
the Department of Streets and Sanitation
Total
TOTAL TRANSPORTATION
TOTAL VEHICLE TAX FUND
MOTOR FUEL TAX AND PROJECT FUND OFFICE OF THE MAYOR - 01 -
2005.XXXX-Personnel Services
TOTAL OFFICE OF THE MAYOR
30,933,491 773,760 14,925 872,570 2,815
75,000
33,000
35,000
32,740,561
65,991,941
178,765,000
259,998
259,998
30,933,491 773,760 14,925 872,570 2,815
75,000
33,000
35,000
32,740,561
65,991,941
178,765,000
259,998
259,998
39,867,805 710,263 17,930 707,795
71,935 28,765 22,552
41,427,045
70,974,132
181,140,604
381,228
381,228
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, 2014
MOTOR FUEL TAX AND PROJECT FUND - Concluded
OFFICE OF BUDGET AND MANAGEMENT - 05 -
2005.XXXX-Personnel Services $ 282,732 $ 282,732 $ (227,306)
TOTAL OFFICE OF BUDGET AND MANAGEMENT 282,732 282,732 (227,306)
16,958,192 8,787,218
16,958,192 7,411,242
16,958,192 6,859,004
FLEET AND FACILITY MANAGEMENT
2131.XXXX-Bureau of Asset Management
2140-Fleet Operations
TOTAL FLEET AND FACILITY MANAGEMENT 25,745,410 24,369,434 23,817,196
STREETS AND SANITATION - 81 -
2047.XXXX-Bureau of Street Operations 16,998,294 16,994,832 25,385,434
TOTAL STREETS AND SANITATION 16,998,294 16,994,832 25,385,434
3,000,000 2,202,401 914,435 17,779,977
3,000,000 2,206,874 526,534 9,205,697 1,489,000
3,000,000 2,202,403 568,161 19,155,697 1,489,000
TRANSPORTATION - 84 ¦
2005.XXXX-C.T.C./Regional Transportation Authority Agreement
2150.XXXX-Bureau of Electricity
XXXX-Divison of In-House Construction
XXXX-Bridge Maintenance
1127.XXXX-Miscellaneous
TOTAL TRANSPORTATION 16,428,105 26,415,261 23,896,813
67,973 620,473
67,973 678,315
FINANCE GENERAL - 99 -
2005.XXXX-Contractual Services 131,758
2005.XXXX-Financial - .
TOTAL FINANCE GENERAL 131,758 746,288 688,446
TOTAL MOTOR FUEL TAX AND PROJECT FUND 59,846,297 69,068,545 73,941,811
22
i
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final Actual
Budget Budget
PENSION FUND
EMPLOYEE PENSIONS
MUNICIPAL EMPLOYEES' ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund $ 162,382,000 $ 162,382,000 $ 164,306,369
Total 162,382,000 162,382,000 164,306,369
POLICEMEN'S EMPLOYEES' ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund 182,964,000 182,964,000 193,758,723
Total 182,964,000 182,964,000 193,758,723
FIREMEN'S EMPLOYEES' ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund 108,914,000 108,914,000 110,637,975
Total 108,914,000 108,914,000 110,637,975
LABORERS' EMPLOYEES'ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'
Annuity and Benefit Fund 14,638,000 14,638,000 14,790,824
Total 14,638,000 14,638,000 14,790,824
TOTAL EMPLOYEE PENSIONS 468,898,000 468,898,000 483,493,891
TOTAL PENSION FUND 468,898,000 468,898,000 483,493,891
MISCELLANEOUS FUND
EMERGENCY COMMUNICATION
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0100-Contractual Services 100,000 100,000
2005.9639-Department Salaries 67,005,000 67,005,000 67,005,000
Total 67,105,000 67,105,000 67,005,000
TOTAL EMERGENCY COMMUNICATION 67,105,000 67,105,000 67,005,000
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, 2014
Original Final Actual
Budget Budget
MISCELLANEOUS FUND - Continued
SPECIAL DEPOSIT ACTIVITIES CHICAGO PARKING METERS GENERAL GOVERNMENT FINANCE - GENERAL - 99 -
2005.XXXX $ 22,222,726 $ 22,222,726 $ 21,716,960
TOTAL CHICAGO PARKING METERS 22,222,726 22,222,726 21,716,960
DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT - 54 -
2005.9999-Miscellaneous 574,000 574,000
Total 574,000 574,000 -
PUBLIC SAFETY DEPARTMENT OF POLICE - 57 -
2005.9999-Miscellaneous 8,407,801 8,407,801 5,164,307
Total 8,407,801 8,407,801 5,164,307
TOTAL SPECIAL DEPOSIT ACTIVITIES 31,204,527 31,204,527 26,881,267
COMMONWEALTH EDISON SETTLEMENT GENERAL GOVERNMENT OFFICE OF THE MAYOR - 01 -
2005.9999-Miscellaneous 580,000 580,000 395,414
Total 580,000 580,000 395,414
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT- 38
2005.9999-Miscellaneous 1,470,255 1,470,255 708,227
Total 1,470,255 1,470,255 708,227
TOTAL COMMONWEALTH SETTLEMENT 2,050,255 2,050,255 1,103,641
ALLIED SETTLEMENT FUND GENERAL GOVERNMENT DEPARTMENT OF LAW-31 -
2005.9999-Miscellaneous 659,944 659,944 657,372
Total 659,944 659,944 657,372
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, 2014
MISCELLANFOU-S FUND - Concluded
ALLIED SETTLEMENT FUND - Concluded
DEPARTMENT OF PROCUREMENT SERVICES - 35 -
2005.9999-Miscellaneous $ 1,368,500 $ 1,368,500 $ 524,617
Total 1,368,500 1,368,500 524,617
TOTAL ALLIED SETTLEMENT 2,028,444 2,028,444 1,181,989
CTA REAL PROPERTY TRANSFER TAX
FINANCE GENERAL - 99 -
2005.9205-For Distribution of the Net Proceeds of the Real Property
Transfer Tax-CTA Portion 55,239,000 55,239,000 63,150,307
2005.9640-To Reimburse Corporate Fund for Costs Incurred for
Collection of the Real Property Transfer Tax-CTA Portion 558,000 558,000 640,437
Total 55,797,000 55,797,000 63,790,744
159,962,641
158,185,226
158,185,226
TOTAL CTA REAL PROPERTY TRANSFER TAX 55,797,000 55,797,000 63,790,744
TOTAL MISCELLANEOUS FUND _
LIBRARY FUND GENERAL GOVERNMENT
DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -
2126.0300-Commodities 1,180,695 1,180,695 1,137,833
Total 1,180,695 1,180,695 1,137,833
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -
BUREAU OF FACILITY MANAGEMENT
2126.0000-Personnel Services 1,364,614 1,364,614 1,305,793
2126.0100-Contractual Services 6,501,895 6,501,895 6,118,545
2126.0300-Commodities 535,000 . 535,000 517,418
Total 8,401,509 8,401,509 7,941,756
BUREAU OF ASSET MANAGEMENT -38-
2131.0100-Contractual Services 1,758,985 1,758,985 1,681,724
2131.0300-Commodities 3,211,949 3,211,949 3,211,949
Total 4,970,934 4,970,934 4,893,673
TOTAL DEPARTMENT OF FLEET AND
FACILITY MANAGEMENT 13,372,443 13,372,443 12,835,429
25
i
Schedule 2 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014 .
Original Final Actual
Budget Budget
LIBRARY FUND - Concluded
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services $ 10,902,854 $ 10,902,854 $ 9,848,277
2005.0100-Contractual Services 1,236,423 1,236,423 1,010,000
2005.0955-lnterest on Daily Tender Notes 1,430,000 1,430,000 307,324
2005.9027-City's Contribution to Social Security Tax 20,586 20,586 20,586
2005.9076-City's Contribution to Medicare Tax 873,105 873,105 873,105
2005.9112-Property Maintenance Contract for the Harold Washington Library Center: To Be Expended
Under the Direction of the Budget Director 6,999,186 6,999,186 6,999,186
2005.9165-For Expenses Related to the Data Center 127,871 127,871 127,871
Total 21,590,025 21,590,025 19,186,349
TOTAL GENERAL GOVERNMENT 36,143,163 36,143,163 33,159,611
CHICAGO PUBLIC LIBRARY - 91 -
2005.0000-Personnel Services 47,592,552 47,592,552 46,896,257
2005.0100-Contractual Services 2,997,968 2,997,968 2,846,060
2005.0300-Commodities 556,890 556,890 520,935
2005.9438-Department of General Services 170,427 170,427 170,427
Total 51,317,837 51,317,837 50,433,679
TOTAL LIBRARY FUND 87,461,000 87,461,000 83,593,290
SPECIAL EVENTS. TOURISM AND FESTIVALS FUND MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX
GENERAL GOVERNMENT
OFFICE OF THE MAYOR - 01 -
2005.0000-For Personnel Services 529,248 529,248 520,525
Total 529^248" 529j248~ 520,525
CITY COUNCIL COMMITTEE ON SPECIAL EVENTS AND CULTURAL AFFAIRS -15-
2155.0000-Personnel Services 146,000 146,000 146,004
2155.0300-Commodities 8720 8720 8,719
Total 154,720 154,720 154,723
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, 2014
Original Final Actual
Budget Budget
SPECIAL EVENTS. TOURISM AND FESTIVALS FUND - Continued
MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX - Concluded
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.0000-Personnel Services $ 1,139,404 $ 1,139,404 $ 1,066,015
2005.0100-Contractual Services 5,095,807 5,095,807 4,262,396
2005.0991-To Provide for Matching and Supplementary
Grant Funds 223,500 223,500 80,936
2005.0912-For Payment of Bonds 3,575,000 3,575,000 3,575,000
2005.9027-City's Contribution to Social Security Tax 2,066 2,066 2,066
2005.9076-City's Contribution to Medicare Tax 87,648 87,648 87,648
2005.9124-For the Sisters City Program 528,643 528,643 528,643
2005.9129-lmplementation of Cultural Plan 1,250,000 1,250,000 1,249,900
2005.9610-To Reimburse Coporate Fund for Provision Pension 748,831 748,831 748,831
Total 12,650,899 12,650,899 11,601,435
TOTAL GENERAL GOVERNMENT 13,334,867 13,334,867 12,276,683
CULTURAL AND RECREATIONAL
DEPARTMENT OF CULTURAL AFFAIRS - 23 -
2015.0000-Personnel Services 6,342,493 6,342,493 5,965,287
2015.0100-Contractual Services 3,062,880 3,062,880 2,880,158
2015.0200-Travel 12,500 12,500 3,750
2015.0300-Commodities 95,000 95,000 81,997
2015.9188-For Expenses Related to the Millennium Park 6,195,000 ^ 6,195,000 6,194,226
2015.9288-For Expenses Related to the
Operation of Millennium Park 190,000 190,000 190,000
2015.9400-For Specific Purpose-General 2,471,760 2,471,760 1,575,803
2015.9800-For Special Events Projects 13,199,500 13,199,500 12,724,718
Total 31,569,133 31,569,133 29,615,939
TOTAL CULTURAL AND RECREATIONAL 31,569,133 31,569,133 29,615,939
TOTAL MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX 44,904,000 44,904,000 41,892,622
DEPARTURE TAX
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE - 27 -
2003.0100-Contractual Services 489,296 489,296 489,296
Total 489,296 489,296 489,296
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, 2014
Original Final Actual
Budget Budget
SPECIAL EVENTS, TOURISM AND FESTIVALS FUND - Concluded
GENERAL GOVERNMENT - Concluded
DEPARTMENT OF AVIATION - 85 -
2005.0000-Personnel Services $ 914,995 $ 914,995 $ 914,995
Total 914,995 914,995 914,995
TOTAL GENERAL GOVERNMENT 1,404,291 1,404,291 1,404,291
PUBLIC SAFETY
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
2005.0000-Personnel Services 184,593 184,593 184,593
Total 184,593 184,593 184,593
TOTAL PUBLIC SAFETY 184,593 184,593 184,593
TOTAL DEPARTURE TAX 1,588,884 1,588,884 1,588,884
TOTAL SPECIAL EVENTS, TOURISM
AND FESTIVALS FUND 46,492,884 46,492,884 43,481,506
HEALTH AND WELFARE FUND
SMALL BUSINESS DEVELOPMENT LOAN FUND
DEPARTMENT OF FINANCE - GENERAL - 99 -
2005.9999-Miscellaneous 3,000 3,000
TOTAL SMALL BUSINESS DEVELOPMENT LOAN FUND 3000 3,000
NEIGHBORHOOD HUMAN INFRASTRUCTURE FUND
GENERAL GOVERNMENT
DEPARTMENT OF BUDGET & MANAGEMENT - 05 -
2005.9999-Miscellaneous 569,000 569,000
TOTAL GENERAL GOVERNMENT 569,000 569,000
TOTAL NEIGHBORHOOD HUMAN INFRASTRUCTURE FUND 569,000 569,000
TOTAL HEALTH AND WELFARE FUND 572,000 572,000
28
Schedule 2 - Concluded CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2014
Original Final Actual
Budget Budget
SPECIAL TAXING AREA
GENERAL GOVERNMENT
DEPARTMENT OF BUDGET & MANAGEMENT - 05 -
.0000-Personnel Services J 163,275 J 163,275 _$
Total 163,275 163,275
DEPARTMENT OF FINANCE - 27 -
2012.0000-Personnel Services 299,056 , 299,056
2012.0100-Contractual Services 250,000 250,000
2015.0000-Personnel Services 75,699 75,699
Total 624,755 624,755
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 1,132,342 1,132,342
Total 1,132,342 1,132,342
DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT - 54 -
.0000-Personnel Services 3,737,888 3,737,888
.9000-General 125,000 125,000
Total 3,862^888" 3,862,888
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
.0100-Contractual 700,000 700,000
.9610-General 571,720 571,720
.9626-General 999,000 999,000
Total 2,270,720" 2,270,720
TOTAL SPECIAL TAXING AREA 8,514,000 8,514,000
TOTAL SPECIAL REVENUE FUNDS $ 1,008,734,407 $ 1,017,956,655 $ 1,025,613,743
29
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Schedule 3
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS -MOTOR FUEL TAX FUND
STATEMENT OF CASH RECEIPTS AND EXPENDITURES
Year Ended December 31, 2014
Cash Balance Dec. 31, 2013
Receipts 2014
Expenditures Cash Balance
2014 Dec. 31,2014
Allocated to Specific Projects: Bureau of Streets -
Arterial Streets $ 6,916,170 $ 9,950,000 5,887,356 $ 10,978,814
Bureau of Streets -
Non-Arterial Streets 8,571,147 7,411,242 6,767,368 9,215,021
Bureau of Streets -
New Street Construction-Inactive 72,324 - - 72,324
Bureau of Street Operations -
Street Maintenance and Cleaning (6,876,674) 16,994,732 28,992,108 (18,874,050)
Bureau of Electricity -
Street and Highway Lighting 15,795,871 2,202,403 2,292,157 15,706,117
Street Light Energy Cost 869 16,958,192 16,958,192 869
Bureau of Street Traffic -
Traffic Signal Controls (10,748,703) 568,161 2,015,692 (12,196,234)
Bureau of Bridges -
Bridges, Viaducts and Superhighways (808,223) 9,205,697 9,037,217 (639,743)
Department of Transportation -
CTA/RTA Authority Agreement (12,000,000) 3,000,000 3,000,000 (12,000,000)
New Street Construction-Active 3,503,150 - - 3,503,150
Contingency 1,000,000 - - 1,000,000
Subtotal 5,425,931 66,290,427 74,950,090 (3,233,732)
Unallocated Receipts and Distributions:
Unobligated Funds (19,673,821) - - (19,673,821)
Interest on Investments 1,336,848 37,211 - 1,374,059
Miscellaneous Income 30,462,515 12,203,027 : 42,665,542
Total $ 17,551,473 $ 78,530,665 $ 74,950,090 $ 21,132,048
A reconciliation of Cash Receipts shown above and Actual Revenue follows:
Actual Revenue
Revenue Receivable -
Balance December 31, 2014
Balance December 31, 2013
Miscellaneous Adjustments -
Balance December 31, 2014
Balance December 31, 2013
Receipts
$ 65,005,904
$ 12,090,364
13,645,037 1,554,673
(42,933,460)
(30,963,372) 11,970,088 $ 78,530,665
31
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i
Schedule 4
CITY OF CHICAGO, ILLINOIS
SPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTS COMBINING BALANCE SHEET December 31, 2014
With Comparative Totals for December 31, 2013 (Amounts are in Thousands of Dollars)
General Governmenl Health
Public Safety
Transportation
ASSETS:
Cash and Cash Equivalents $ 10,136 $ 826 $ 322 $ 403
Investments 8,574 8,403 5,465 7,001
Restricted Assets - Cash and Cash Equivalents
Receivables (Net of Allowances) 1,332 62 1,024 55
Due from Other Funds 8,253 612 100 22
Due from Other Governments 400 32,271 10,029 294,858
Other Assets : : : 2_
Total Assets $ 28,695 $ 42,174 $ 16,940 $ 302,341
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 1,405 $ 19,994 $ 1,403 $ 57,771
Bonds, Notes and Other Obligations Payable - Current
Due to Other Funds 26,283 14,309 3,291 232,420
Accrued and Other Liabilities 2,307 1,149 405 1,399
Unearned Revenue 5,492 10,130 11,702 9,884
Total Liabilities $ 35,487 $ 45,582 $ 16,801 $ 301,474
Deferred Inflows:
Deferred Inflows 400 7,363 7,060 212,318
Fund Balance (Deficit):
Restricted ...
Unassigned (7,192) (10,771) (6,921) (211,451)
Total Fund Balance (Deficit) (7,192) (10,771) (6,921) (211,451)
Total Liabilities, Deferred Inflows and Fund Balance $ 28,695 $ 42,174 $ 16,940 $ 302,341
32
Cultural Urban Intrafund Totals
Environmental and Human Develop- Capital Activity
Aviation Control Recreational Services ment Outlay Elimination 2014 2013
$ 45 $ 34
1,593 $ 2,917
60 1,662
2,801 1,600|1010|63 622
435 30,439 3,217 1,211 949 106,589 3,770
64 1,448 3 93
6,093 303
$ 6,355 5,155
197
22,980 71,036 3,220 3,778 10,059 452,721 4,075
47,723 3,220 6,133
21,759 438,962 4,075
$79 $ 6,232 $ 5,087 $ 146,610 $ 8,004 $ 11,707 $
$ 2 $ 13 $ 23 $ 76,233 $|109|35 17,045
4 2 149 4,349
397 739 18,075
81 $ 1,004 $
35 25 13.286
$ 157,929 $ 139,742
296,159 266,218
9,861 8,383
69,825 61,049
946 $ 115,702 $ 3,011 $ 14,350 $
259,140
73
3,852
7,149
4,156
73
3,852
7,149
(1,100) (2,840) (1,100) (2,840)
4,156
$ 79 $ 6,232 $ 5,087 $ 146,610 $ 8,004 $ 11,707 $
5,880 292,276
15,230 (240,275)
(225,045) (286,396) $ 567,869 $ 521,872
33
Schedule 5
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, 2014 With Comparative Totals for 2013 (Amounts are in Thousands of Dollars)
General Public Trans-
Government Health Safety portation
Revenues:
Federal/State Grants $ 4,393 $ 109,265 $ 59,097 $ 249,142
Total Revenues 4,393 109,265 59,097 249,142
Expenditures:
Current 5,383 102,350 40,122 237,961
Total Expenditures 5,383 102,350 40,122 237,961
Revenues Over Expenditures (990) 6,915 18,975 11,181
Other Financing Sources (Uses):
ProceedsofDebt.net - - - 17,168
Operating Transfers In - - - -
Total Other Financing Sources (Uses) - - - -
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Sources (Uses) (990) 6,915 18,975 28,349
Fund Balance (Deficit)-Beginning of Year (6,202) (17,686) (25,896) (239,800)
Fund Balance (Deficit)-End of Year $ (7,192) $ (10,771) $ (6,921) $ (211,451)
34
Environmental Cultural and Human Urban Capital Totals
Aviation Control Recreational Services Development Outlay 2014 2013
806 $ 14,607 $ 364,699 $ 157 $ 7,674 $ 809,840 $ 706,831
806 14,607 364,699 157 7,674 809,840 706,831
57 12,272 355,509 2,140 9,863 765,657 791,123
57 12,272 355,509 2,140 9,863 765,657 791,123
749 2,335 9,190 (1,983) (2,189) 44,183 (84,292)
17,168
- - - - - - 3,984
17,168 3,984
749 2,335 9,190 (1,983) (2,189) 61,351 (80,308)
73 3,407 1,517 (2,041) 883 (651) (286,396) (206,088)
73 $ 4,156 $ 3,852 $ 7,149 $ (1,100) $ (2,840) $ (225,045) $ (286,396)
t
35
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